GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2003
H 7
HOUSE BILL 397
Committee Substitute Favorable 4/15/03
Committee
Substitute Favorable #2 4/15/03
Fourth Edition Engrossed 4/16/03
Senate Appropriations/Base Budget Committee Substitute Adopted 4/28/03
Sixth Edition Engrossed 4/28/03
Seventh Edition Engrossed 4/30/03
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Short Title: 2003 Budget Act. |
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Sponsors: |
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Referred to: |
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March 11, 2003
A BILL TO BE ENTITLED
AN ACT to appropriate funds for current operations and capital improvements for state departments, institutions, and agencies, and for other purposes, and to Implement A State Budget That enables the State to Provide a sustainable recovery through strong educational and economic tools.
The General Assembly of North Carolina enacts:
PART I. INTRODUCTION AND TITLE OF ACT
Requested by: Senators Garrou, Dalton, Hagan
Requested by: Senators Garrou, Dalton, Hagan
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Requested by: Senators Garrou, Dalton, Hagan
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund 2003‑2004 2004‑2005
EDUCATION
Community Colleges System Office 659,476,062 662,736,376
Department of Public Instruction 6,029,629,683 6,025,274,564
University of North Carolina – Board of Governors 1,794,573,717 1,829,669,657
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary 82,168,433 80,968,433
Division of Aging 27,685,838 27,685,838
Division of Blind Services/Deaf/HH 9,302,670 9,387,008
Division of Child Development 259,017,167 259,210,693
Division of Education Services 31,806,862 31,670,076
Division of Facility Services 10,071,055 10,071,055
Division of Medical Assistance 2,269,060,187 2,584,744,370
Division of Mental Health 576,408,911 579,261,762
NC Health Choice 50,368,030 56,426,280
Division of Public Health 125,791,904 123,963,324
Division of Social Services 176,189,220 186,039,814
Division of Vocation Rehabilitation 40,042,124 40,834,858
Total 3,657,912,401 3,990,263,511
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services 48,477,909 48,604,240
Department of Commerce
Commerce 45,125,448 33,695,769
Commerce State‑Aid 10,316,728 10,266,728
NC Biotechnology Center 5,883,395 5,883,395
Rural Economic Development Center 4,491,587 4,491,587
Department of Environment and Natural Resources
Environment and Natural Resources 147,683,265 153,527,049
Clean Water Management Trust Fund 100,000,000 100,000,000
Department of Labor 13,265,454 13,274,104
JUSTICE AND PUBLIC SAFETY
Department of Correction 940,198,075 959,902,282
Department of Crime Control and Public Safety 29,034,326 28,139,010
Judicial Department 303,317,883 310,514,697
Judicial Department – Indigent Defense 72,674,829 70,741,793
Department of Justice 70,673,310 71,459,312
Department of Juvenile Justice and
Delinquency Prevention 130,910,473 130,730,498
GENERAL GOVERNMENT
Department of Administration 52,005,520 52,583,907
Office of Administrative Hearings 2,409,683 2,411,797
Department of State Auditor 10,293,801 10,293,801
Office of State Controller 9,694,464 9,719,451
Department of Cultural Resources
Cultural Resources 54,532,248 54,253,598
Roanoke Island Commission 1,634,905 1,636,559
State Board of Elections 7,439,982 4,915,939
General Assembly 41,561,463 44,971,305
Office of the Governor
Office of the Governor 4,976,503 4,826,503
Office of State Budget and Management 4,211,805 4,216,110
OSBM – Reserve for Special Appropriations 3,130,000 3,130,000
Housing Finance Agency 4,750,945 4,750,945
Department of Insurance
Insurance 26,307,054 23,187,587
Insurance – Volunteer Safety Workers'
Compensation 4,500,000 4,500,000
Office of Lieutenant Governor 601,722 601,722
Department of Revenue 73,964,774 74,062,627
Rules Review Commission 310,454 310,454
Department of Secretary of State 7,857,198 7,816,198
Department of State Treasurer
State Treasurer 7,575,029 7,577,784
State Treasurer – Retirement for Fire and
Rescue Squad Workers 7,181,179 7,181,179
TRANSPORTATION
Department of Transportation 11,429,525 11,460,101
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Reserve for Compensation Increases 141,350,000 135,250,000
Reserve for State Health Plan 113,418,000 151,225,000
Reserve for Retiree Health Benefits 36,800,000 36,800,000
Reserve for Teachers' and State Employees'
Retirement Contribution 29,555,000 157,200,000
Reserve for Transfer of Various Benefit Plans (86,250,000) (3,250,000)
Contingency and Emergency 5,000,000 5,000,000
Reserve for Salary Adjustments 500,000 500,000
Mental Health, Developmental Disabilities and
Substance Abuse Services Trust Fund 15,000,000 0
Reserve to Implement HIPAA 2,000,000 0
Reserve for Easley Health Initiatives 2,500,000 2,500,000
Debt Service
General Debt Service 387,785,920 503,639,452
Federal Reimbursement 1,155,948 1,155,948
TOTAL CURRENT OPERATIONS –
GENERAL FUND 15,048,827,667 15,773,602,539
Requested by: Senators Garrou, Dalton, Hagan
GENERAL FUND AVAILABILITY STATEMENT
FY 2003‑2004 FY 2004‑2005
Unappropriated Balance
Remaining from FY 2002‑2003 103,885 0
Beginning Unreserved Credit Balance 375,000,000 0
Revenues Based on Existing Tax Structure 13,384,600,000 14,203,713,917
Nontax Revenues
Investment Income 113,900,000 132,056,801
Judicial Fees 137,520,000 144,430,000
Disproportionate Share 100,000,000 100,000,000
Insurance 51,900,000 53,900,000
Other Nontax Revenues 116,050,000 120,100,000
Highway Trust Fund/Sales Tax on Vehicles
Reimbursement Transfer 252,422,125 231,774,330
Highway Fund Transfer 16,379,000 16,166,400
Subtotal Nontax Revenues 788,171,125 798,427,531
Total General Fund Availability 14,547,875,010 15,002,141,448
Adjustments to Availability: 2003 Session
Maintain Sales Tax Rate at 4.5% 346,500,000 388,200,000
Maintain Top Income Tax Bracket at 8.25% 37,500,000 92,700,000
Delay Increase in the Child Tax Credit 20,300,000 54,100,000
Conform to Federal Definition of
Child for State Child Tax Credit 16,800,000 17,000,000
Delay Increase in Standard Deduction
(Marriage Penalty) 33,400,000 47,000,000
Equalize Insurance Tax Rate
on Article 65 Corporations 19,300,000 14,700,000
Conform to Streamline Sales Tax Provision
(Candy, Soft Drinks, Prepared Food &
Modified Software) 30,200,000 30,600,000
Tax Soft Drinks in Vending Machines
at 50% of General Rate (4,700,000) (4,700,000)
Restore Use Tax Line on Individual Returns 3,100,000 3,100,000
Revenue: Project Tax Collect 10,000,000 10,000,000
Revenue: Project Compliance 38,340,500 74,009,500
Divert MSA Settlement Proceeds
from Tobacco Trust Fund 30,000,000 30,000,000
Divert MSA Settlement Proceeds
from Health & Wellness Trust Fund 10,000,000 10,000,000
Fee Increases 4,959,418 4,959,418
Adjust Transfer from
Insurance Regulatory Fund 2,942,777 (207,827)
Credit to Repairs & Renovations
Reserve Account (50,000,000) 0
Credit to Savings Reserve Account (19,089,038) 0
Subtotal Adjustments to Availability:
2003 Session 529,553,657 771,461,091
Revised General Fund Availability 15,077,428,667 15,773,602,539
Less: Total General Fund Appropriations (15,077,428,667) (15,773,602,539)
Unappropriated Balance Remaining 0 0
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 during the 2003‑2004 and 2004‑2005 fiscal years, the sum of ten million dollars ($10,000,000) that would otherwise be deposited in the Fund Reserve established by 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.
Any funds transferred from the Highway Trust Fund to the General Fund in this act in addition to the transfer authorized by G.S. 105‑187.9(b) shall be fully repaid to the Highway Trust Fund, including interest at the net rate of return generated by the State Treasurer's Short Term Investment Fund.
PART III. CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
Requested by: Senators Garrou, Dalton, Hagan
CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
Current Operations – Highway Fund 2003‑2004 2004‑2005
(1) Transportation Admin. (84210) 72,825,987 72,948,211
(2) Transportation Operations (84220) 28,190,393 28,150,605
(3) Transportation programs (84230)
State Construction
Secondary 89,600,000 90,590,000
Urban 28,000,000 14,000,000
Public access 2,000,000 2,000,000
Spot safety 9,100,000 9,100,000
Contingency 15,000,000 10,000,000
Federal Aid Match 4,160,000 4,280,000
Maintenance 579,757,883 570,231,046
Asphalt plant/OSHA 425,000 425,000
Capital ‑
Ferry Operations 19,677,283 19,677,283
Aid to municipalities 89,600,000 90,590,000
Rail 15,090,919 15,531,153
Public transit 79,705,266 80,302,926
(4) Governor's highway safety (84240) 292,449 293,118
(5) Transportation regulation (84260) 100,255,703 100,323,363
(6) Reserves, transfers, other agencies (84270) 217,249,117 224,514,347
TOTAL 1,350,930,000 1,332,957,052
Requested by: Senators Garrou, Dalton, Hagan
HIGHWAY FUND AVAILABILITY STATEMENT
Highway Fund Budget Reform Statement 2003‑2004 2004‑2005
Beginning Credit Balance ‑
Estimated Revenue $ 1,350,930,000 $ 1,373,080,000
Estimated Reversions ‑
Total Highway Fund Availability $ 1,350,930,000 $ 1,373,080,000
PART IV. HIGHWAY TRUST FUND APPROPRIATIONS
Requested by: Senators Garrou, Dalton, Hagan
HIGHWAY TRUST FUND APPROPRIATIONS
Current Operations – Highway Trust Fund 2003‑2004 2004‑2005
Intrastate System $ 422,754,783 $ 459,363,570
Urban Loops 170,944,428 185,747,496
Aid to Municipalities 44,356,838 48,197,953
Total for Secondary Roads 79,559,266 84,350,953
Program Administration 40,001,560 39,636,698
Transfer to General Fund 252,422,125 231,774,330
GRAND TOTAL CURRENT OPERATIONS
AND EXPANSION $1,010,039,000 $1,049,071,000
PART V. BLOCK GRANTS
Requested by: Senators Purcell, Reeves , Garrou, Dalton, Hagan
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2004, according to the following schedule:
COMMUNITY SERVICES BLOCK GRANT
01. Community Action Agencies $ 15,266,973
02. Limited Purpose Agencies 848,165
03. 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 $ 16,963,303
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 Mental Health, Developmental
Disabilities, and Substance Abuse Services 3,234,601
04. Division of Services for the Blind 3,105,711
05. Division of Facility Services 426,836
06. Division of Aging – Home and Community
Care Block Grant 1,840,234
07. Child Care Subsidies 3,000,000
08. Division of Vocational Rehabilitation –
United Cerebral Palsy 71,484
09. State administration 1,693,368
10. Child Medical Evaluation Program 238,321
11. Adult day care services 2,155,301
12. Comprehensive Treatment Services
Program 422,003
13. Department of Administration
for the N.C. State Commission of Indian Affairs
In‑Home Services Program for the Elderly 203,198
14. Division of Vocational Rehabilitation Services –
Easter Seals Society 116,779
15. UNC‑CH CARES Program for training and
consultation services 247,920
16. Office of the Secretary – Office of Economic
Opportunity for N.C. Senior Citizens'
Federation for outreach services to
low‑income elderly persons 41,302
17. Division of Social Services – Child
Caring Agencies 1,500,000
18. Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services – Developmentally
Disabled Waiting List for services 5,000,000
19. Transfer to Preventive Health Services Block
Grant for HIV/AIDS education, counseling, and
testing 145,819
20. Division of Facility Services –
Mental Health Licensure 213,128
21. Transfer to the Office of the Secretary –
N.C. Inter‑agency Council for Coordinating
Homeless Programs 150,000
TOTAL SOCIAL SERVICES BLOCK GRANT $ 54,775,307
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 $ 4,546,916
02. Provision of community‑based
services to children 2,513,141
03. Comprehensive Treatment Services
Program for Children 1,500,000
04. Group Home Tracking System 986,600
05. Administration 693,193
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 10,239,850
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
01. Provision of community‑based
alcohol and drug abuse services,
tuberculosis services, and services
provided by the Alcohol and Drug Abuse
Treatment Centers $ 18,901,711
02. Continuation of services for
pregnant women and women
with dependent children 8,069,524
03. Continuation of services to
IV drug abusers and others at risk
for HIV diseases 4,616,378
04. Provision of services to children
and adolescents 7,740,611
05. Juvenile Services – Family Focus 851,156
06. Allocation to the Division of Public Health
for HIV/STD Risk Reduction Projects 383,980
07. Allocation to the Division of Public Health
for HIV/STD Prevention by County Health
Departments 209,576
08. Allocation to the Division of Public Health
for the Maternal and Child Health Hotline 37,779
09. Administration 2,596,307
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 43,407,022
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
01. Child care subsidies $154,713,475
02. Quality and availability initiatives 16,449,256
03. Administrative expenses 6,969,533
04. Transfer from TANF Block Grant for
child care subsidies 79,562,189
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $257,694,453
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
01. Work First Cash Assistance $129,396,275
02. Work First County Block Grants 94,653,315
03. Transfer to the Child Care and
Development Fund Block Grant
for child care subsidies 79,562,189
04. Child Care Subsidies for TANF Recipients 26,621,241
05. Child Welfare Workers for local DSS 11,452,391
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 1,925,000
08. Residential Substance Abuse Services
for Women With Children 2,000,000
09. Domestic Violence Services
for Work First Families 1,200,000
10. After‑School Services for
At‑Risk Children 1,925,000
11. Division of Social Services –
Administration 400,000
12. Child Welfare Training 1,600,000
13. TANF Automation Projects 592,500
14. Work First/Boys and Girls Clubs 1,000,000
15. Work Central Career Advancement Center 550,000
16. WCH‑Teen Pregnancy Prevention 1,500,000
17. Transfer to Social Services Block Grant for Child Caring
Institutions 1,500,000
18. Special Children's Adoption Fund 2,000,000
19. NC Fast Implementation 630,000
20. Maternity Homes 838,000
21. Pregnancy Prevention Coalition of North Carolina 127,500
22. Individual Development Accounts 180,000
23. Reduction of Out‑of‑Wedlock Births 1,000,000
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $365,153,411
MATERNAL AND CHILD HEALTH BLOCK GRANT
01. Healthy Mothers/Healthy Children
Block Grants to Local Health
Departments 9,838,074
02. High‑Risk Maternity Clinic Services,
Perinatal Education and Training,
Childhood Injury Prevention,
Public Information and Education, and
Technical Assistance to Local Health
Departments 2,307,918
03. Services to Children With Special Health
Care Needs 5,078,647
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 17,224,639
PREVENTIVE HEALTH SERVICES BLOCK GRANT
01. Statewide Health Promotion Programs $3,132,810
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. Office of Minority Health 159,459
05. Administrative Costs 108,546
06. Osteoporosis Task Force Activities 150,000
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $3,893,746
SECTION 5.1.(b) Decreases in Federal Fund Availability. – If the United States Congress reduces federal fund availability in the Social Services Block Grant below the amounts appropriated in this section, then the Department of Health and Human Services shall allocate these decreases giving priority first to those direct services mandated by State or federal law, then to those programs providing direct services that have demonstrated effectiveness in meeting the federally and State‑mandated services goals established for the Social Services Block Grant. The Department shall not include transfers from TANF for specified purposes in any calculations of reductions to the Social Services Block Grant.
If the United States Congress reduces the amount of TANF funds below the amounts appropriated in this section after the effective date of this act, then the Department shall allocate the decrease in funds after considering any underutilization of the budget and the effectiveness of the current level of services. Any TANF Block Grant fund changes shall be reported to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
Decreases in federal fund availability shall be allocated for the Maternal and Child Health and Preventive Health Services federal block grants by the Department of Health and Human Services after considering the effectiveness of the current level of services.
SECTION 5.1.(c) Increases in Federal Fund Availability. – Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended by the Department of Health and Human Services, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.
SECTION 5.1.(d) Changes to the budgeted allocations to the block grants appropriated in this act and new allocations from the block grants not specified in this act shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to the change and shall be reported immediately to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(e) The Department of Health and Human Services may allow no‑cost contract extensions for up to six months for nongovernmental grant recipients under the TANF Block Grant.
SECTION 5.1.(f) If federal funds are received under the Maternal and Child Health Block Grant for abstinence education, pursuant to section 912 of Public Law 104‑193 (42 U.S.C. § 710), for the 2003‑2004 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an Abstinence Until Marriage Education Program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C‑81(e1)(4). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.
The Department of Health and Human Services shall contract for the follow‑up testing involved with the Newborn Screening Program. The Department may contract for these services with an entity within or outside of the State; however, the Department may only contract with an out‑of‑state entity if it can be demonstrated that there is a cost savings associated with contracting with the out‑of‑state entity. The contract amount shall not exceed twenty‑five thousand dollars ($25,000). The amount of the contract shall be covered by funds in the Maternal and Child Health Block Grant.
SECTION 5.1.(g) The 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 to develop and implement a Medical Child Care Pilot open to children throughout the State.
SECTION 5.1.(h) Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 5.1.(i) The sum of four hundred thousand dollars ($400,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2003‑2004 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 5.1.(j) The sum of two million dollars ($2,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2003‑2004 fiscal year shall be used to provide regional residential substance abuse treatment and services for women with children. The Department of Health and Human Services, Division of Social Services and Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, in consultation with local departments of social services, area mental health programs, and other State and local agencies or organizations, shall coordinate this effort in order to facilitate the expansion of regionally based substance abuse services for women with children. These services shall be culturally appropriate and designed for the unique needs of TANF women with children.
In order to expedite the expansion of these services, the Secretary of the Department of Health and Human Services may enter into contracts with service providers.
The Department of Health and Human Services, Division of Social Services and Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall report on its progress in complying with this subsection no later than October 1, 2003, and March 1, 2004, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. These reports shall include all of the following:
(1) The number and location of additional beds created.
(2) The types of facilities established.
(3) The delineation of roles and responsibilities at the State and local levels.
(4) Demographics of the women served, the number of women served, and the cost per client.
(5) Demographics of the children served, the number of children served, and the services provided.
(6) Job placement services provided to women.
(7) A plan for follow‑up and evaluation of services provided with an emphasis on outcomes.
(8) Barriers identified to the successful implementation of the expansion.
(9) Identification of other resources needed to appropriately and efficiently provide services to Work First recipients.
(10) Other information as requested.
SECTION 5.1.(k) The sum of one million nine hundred twenty‑five thousand dollars ($1,925,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2003‑2004 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.(l) 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 2003‑2004 fiscal year shall be used to provide domestic violence services to Work First recipients. These funds shall be used to provide domestic violence counseling, support, and other direct services to clients. These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts. The Division of Social Services may use up to seventy‑five thousand dollars ($75,000) in TANF funds to establish one administrative position within the Division of Social Services to implement this subsection.
Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2003. 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, 2003, 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, 2003. 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, 2004, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(m) The sum of one million nine hundred twenty‑five thousand dollars ($1,925,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used to expand after‑school programs and services for at‑risk children. The Department shall develop and implement a grant program to award grants to community‑based programs that demonstrate the ability to reach children at risk of teen pregnancy and school dropout. The Department shall award grants to community‑based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to establish one position within the Division of Social Services to coordinate at‑risk after‑school programs and shall not be used for other State administration. The Department shall report no later than March 1, 2004, on its progress in complying with this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(n) The sum of eleven million four hundred fifty‑two thousand three hundred ninety‑one dollars ($11,452,391) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2003‑2004 fiscal year for Child Welfare Improvements shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and post‑adoption services for eligible families.
SECTION 5.1.(o) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the Mental Health Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2003‑2004 fiscal year and the sum of four hundred twenty‑two thousand three dollars ($422,003) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2003‑2004 fiscal year shall be used to continue a Comprehensive Treatment Services Program for Children in accordance with Section 21.60 of S.L. 2001‑424, as amended.
SECTION 5.1.(p) The sum of one million six hundred thousand dollars ($1,600,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for fiscal year 2003‑2004 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.(q) If funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to child care subsidies, unless otherwise prohibited by federal requirements of the grant, in order to use the federal funds fully.
SECTION 5.1.(r) 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.(s) The sum of two million dollars ($2,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2003‑2004 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.(t) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this act 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 2003‑2004 fiscal year shall be allocated to the State Private Child Caring Agencies Fund. These funds shall be combined with all other funds allocated to the State Private Child Caring Agencies Fund for the reimbursement of the State's portion of the cost of care for the placement of certain children by the county departments of social services who are not eligible for federal IV‑E funds. These funds shall not be used to match other federal funds.
SECTION 5.1.(u) 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.
Requested by: Senators Weinstein, Metcalf, Queen, Dalton , Garrou, Hagan
SECTION 5.2.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2004, according to the following schedule:
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $1,000,000
02. Urgent Needs and Contingency 1,000,000
03. Scattered Site Housing 13,200,000
04. Economic Development 8,710,000
05. Community Revitalization 13,500,000
06. State Technical Assistance 450,000
07. Housing Development 2,000,000
08. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT BLOCK GRANT –
2004 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; 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) Up to four million dollars ($4,000,000) of funds for Economic Development may be used for Urgent Needs and Contingency for drought recovery.
SECTION 5.2.(g) 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.(h) The Department of Commerce shall, in consultation with local government officials and the University of North Carolina School of Government, design a regional distribution system for making grants in the Community Revitalization category in program year 2005. The system shall take into account the relative lower income, poverty, and housing conditions in every region, target the most critical needs, and ensure that local governments in every region have equal and fair access to these funds.
Requested by: Senators Garrou, Dalton, Hagan
SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS, AND AUTHORIZATION FOR EXPENDITURES
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.
Requested by: Senators Garrou, Dalton, Hagan
NO EXPENDITURE OF UNBUDGETED RECEIPTS
SECTION 6.2. Effective July 1, 2004, G.S. 143‑27 reads as rewritten:
"§ 143‑27. Appropriations to educational, charitable and correctional institutions are in addition to receipts by them.
All appropriations now or
hereafter made to the educational institutions, and to the charitable and
correctional institutions, and to such other departments and agencies of the
State as receive moneys available for expenditure by them are declared to be in
addition to such receipts of said institutions, departments or agencies, and
are to be available as and to the extent that such receipts are insufficient to
meet the costs anticipated in the budget authorized by the General Assembly, of
maintenance of such institutions, departments, and agencies; Provided, however,
that if the receipts, other than gifts and grants that are unanticipated and
are for a specific purpose only, collected in a fiscal year by an institution,
department, or agency exceed the receipts certified for it in General Fund
Codes, Highway Fund Codes, or Wildlife Fund Codes, the Director of the Budget
shall decrease the amount he allots to that institution, department, or agency
from appropriations from that Fund by the amount of the excess, unless the
Director of the Budget has consulted with the Joint Legislative Commission on
Governmental Operations and unless the Director of the Budget finds that (i) the
appropriations from that Fund are necessary to maintain the function that
generated the receipts at the level anticipated in the certified Budget Codes
for that Fund and (ii) the funds may be expended in accordance with G.S. 143‑23.excess.
Notwithstanding the foregoing provisions of this section, receipts within The
University of North Carolina realized in excess of budgeted levels shall be
available, up to a maximum of ten percent (10%) above budgeted levels, for each
Budget Code, in addition to appropriations, to support the operations
generating such receipts, as approved by the Director of the Budget.
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 on expenditures of receipts in excess of the amounts certified in General Fund Codes, Highway Fund Codes, or Wildlife Fund Codes, that did not result in a corresponding reduced allotment from appropriations from that Fund."
Requested by: Senators Garrou, Dalton, Hagan
BUDGET DIRECTOR TO REVIEW PRACTICES
(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.
SECTION 6.2A.(b) Where the review and evaluation reveals problems or other failures, the Office of State Budget and Management shall report its findings and recommendations to the Chairs of the Appropriations Committees of the Senate and House of Representatives as soon as practicable. In particular, the Office of State Budget and Management shall transmit to the General Assembly a list of special funds properly classified together with their estimated beginning balances, estimated receipts and expenditures, and estimated ending balances, and a list of funds currently classified as special funds for which the receipts are more appropriately reflected as offsets to total requirements in General Fund budget codes. The list of special funds properly classified should include funds currently classified as trust funds that are more appropriately classified as special funds.
Requested by: Senators Garrou, Dalton, Hagan
Requested by: Senators Garrou, Dalton, Hagan
CONTINGENCY AND EMERGENCY FUND ALLOCATIONS
Requested by: Senators Garrou, Dalton, Hagan
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 reads as rewritten:
"SECTION 6.14.(b)
Effective October 1, 2003, 2004, G.S. 20‑39.1(b), as
enacted in subsection (a) of this section, reads as rewritten:".
SECTION 6.5.(b) Section 6.14(h) of S.L. 2001‑424 reads as rewritten:
"SECTION 6.14.(h)
Subsection (b) of this section becomes effective October 1, 2003. 2004.
Except as provided in subsection (c) of this section, the remainder of this
section is effective when it becomes law."
Requested by: Senators Garrou, Dalton, Hagan
SECTION 6.6. Funds in the amount of two million dollars ($2,000,000) are appropriated in this act to the Reserve to Implement HIPAA. This reserve shall be located in the Office of State Budget and Management.
Requested by: Senators Garrou, Dalton, Hagan, Purcell, Reeves
SECTION 6.7.(a) The Governor or the Governor's designee shall coordinate the State's implementation of the federal Health Insurance Portability and Accountability Act ("HIPAA"), Title II Subtitle F (Administrative Simplification). Specifically, the scope of coordination shall include the following:
(1) Coordinating correspondence between the State and the United States government on all matters relating to HIPAA Administrative Simplification requirements under Subtitle F of Title II of HIPAA.
(2) Coordinating official State comments on proposed federal regulations and the federal rule‑making process pertaining to HIPAA Administrative Simplification.
(3) Obtaining from the North Carolina Attorney General legal interpretations of federal rules pertaining to HIPAA Administrative Simplification compliance, implementation, and enforcement.
(4) Establishing deadlines and benchmarks for State agencies to provide the necessary data required to monitor compliance with HIPAA Administrative Simplification requirements.
The Information Resource Management Commission ("IRMC") shall cooperate with the Governor to ensure that IRMC policies and activities and State HIPAA implementation are complementary to ensure effective and efficient monitoring of HIPAA Administrative Simplification requirements.
SECTION 6.7.(b) The University of North Carolina System and the Teachers' and State Employees' Comprehensive Major Medical Plan may develop and implement HIPAA Administrative Simplification compliance and shall report bimonthly to the Governor on the status of implementation.
SECTION 6.7.(c) Funds appropriated to the Reserve to Implement HIPAA that are unexpended and unencumbered at the end of the fiscal year shall not revert to the General Fund but shall remain in the Reserve for use in accordance with the purposes of the Reserve.
Requested by: Senators Swindell, Garrou, Dalton, Hagan
STATE SURPLUS REAL PROPERTY SYSTEM
(1) Review the current inventory of State‑owned land and buildings for accuracy and completeness.
(2) Determine how and when State‑owned land and buildings should be declared surplus.
(3) Determine whether State agencies have the authority to retain funds from the disposal of surplus real property and whether this is consistent among agencies and conducive to the disposal of unneeded property.
(4) Consider the use of private real estate brokers, auction, and any other method determined to be suitable in order to efficiently and effectively dispose of surplus real property.
(5) Review the real property held by a selected number of State agencies to determine whether the agency has any property that meets the criteria as set forth in this section.
(6) Assess the need for additional staff to effectively administer the system.
(7) Examine current State law to assess the need for changes in order to support a uniform system to identify, evaluate, and dispose of all unused or underused State‑owned land and buildings.
(1) The condition of the property;
(2) The extent to which it meets the purpose for which it was intended;
(3) The future needs of the Agency to perform the service intended at the location;
(4) The best and most cost effective manner in which these future needs can be serviced;
(5) The practicability of moving the function of the services performed at a location to another area that might reduce acquisition, construction, and labor cost without diminishing the quality of service;
(6) A recommendation as to whether a respective property should be (i) sold or retained, (ii) renovated, (iii) expanded for future use, or (iv) sold with a lease bond for a period not more than 10 years in order to allow transition; and
(7) Other recommendations regarding use of the property.
These recommendations are by way of illustration and not by way of limitation.
Requested by: Senators Swindell, Garrou, Dalton, Hagan
Requested by: Senators Garrou, Dalton, Hagan
GOVERNMENT AGENCIES TO USE PRODUCTS OF RECYCLED STEEL
SECTION 6.10.(a) G.S. 130A‑309.14 is amended by adding a new subsection to read:
"(l) Any State agency or agency of a political subdivision of the State that is using State funds, or any person contracting with any agency with respect to work performed under contract, shall procure products of recycled steel if all of the following conditions are satisfied:
(1) The product must be acquired competitively within a reasonable time frame.
(2) The product must meet appropriate performance standards.
(3) The product must be acquired at a reasonable price."
Requested by: Senators Garrou, Dalton, Hagan
JOINT COMMITTEE ON EXECUTIVE BUDGET ACT REVISIONS
Requested by: Senators Garrou, Dalton, Hagan
ISSUE REQUEST FOR INFORMATION/ENERGY MANAGEMENT
(1) Number of qualified companies interested in doing energy management business with State government.
(2) Types of energy management services available and applicable to State‑owned facilities.
(3) Long‑term cost savings potentially available to the State from the implementation of various energy management services.
(4) Modifications to State law or regulations that may be necessary to acquire and utilize successfully energy management services.
By May 1, 2004, the Department shall report its findings, conclusions, and recommendations to the Chairs of the Senate and House of Representatives Appropriations Committees.
Requested by: Senators Garrou, Dalton, Hagan
expenditures of funds in reserves limited
Requested by: Senators Hagan, Garrou, Dalton
transfer of land for the Millennium Campuses of UNC‑Greensboro and NC A&T State University
Requested by: Senators Hagan, Garrou, Dalton
REVISE LAW ON NON‑STATE ENTITY REPORTS ON USE OF STATE FUNDS
SECTION 6.21.(a) 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 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. 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 that receives, uses, or expends any State funds.
The funds.
The State may shall
not disburse State funds appropriated by the General Assembly to any
grantee or collected by the State for use by any grantee if unless that
grantee has failed to provide any reports or financial information
previously required by this section. In addition, before disbursing the funds,
the Office of State Budget and Management may require the grantee to supply
information demonstrating that the grantee is capable of managing the funds in
accordance with law and has established adequate financial procedures and
controls. 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.
(b) State Agency Reports.
Responsibilities. – A State agency that receives State funds and
then disburses the State funds to a grantee must identify the grantee to the
State Auditor, unless the funds were for the purchase of goods and services.
The State agency must submit 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 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, except when the funds were for purchases of goods and services, the amount disbursed to each grantee 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 except when the funds were for purchases of goods and services 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.
(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, except when the funds are for the purchase
of goods or services, must file annually with 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 90 days after the end of the grantee's fiscal year in which
the State funds were received. The accounting shall be in the form required by
the State Auditor and provided to the grantee by the disbursing agency. Each
State agency shall develop a format for these accountings and shall obtain the
State Auditor's approval of the format.
(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, except when the funds are for the purchase of goods or services, 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, except when the funds are for the purchase of goods or services, must file annually with 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 end of the grantee's fiscal year in which the State funds were received.
(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 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."
SECTION 6.21.(b) G.S. 143‑26 reads as rewritten:
"§ 143‑26. Director to have discretion as to manner of paying annual appropriations.
(a) Except as provided in subsection (b) of this section or as otherwise provided by State or federal law, it shall be discretionary with the Director of the Budget whether any annual appropriation shall be paid in monthly, quarterly or semiannual installments or in a single payment.
(b) Except as otherwise
provided by State or federal law, an annual appropriation of one hundred
thousand dollars ($100,000) or lessless than fifteen thousand dollars
($15,000) to or for the use of a nonprofit corporation shall be paid in a
single annual payment. An annual appropriation of more than one hundred
thousand dollars ($100,000)fifteen thousand dollars ($15,000) or more
to or for the use of a nonprofit corporation shall be paid in quarterly or
monthly installments, in the discretion of the Director of the Budget."
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 7.1.(a) Effective for the 2003‑2004 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 2003‑2004 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, 2003, 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 2003‑2004 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.
2003‑2004 MONTHLY SALARY SCHEDULE
"A" TEACHERS
Years of "A" NBPTS
Experience Teachers Certification
0 $2,525 N/A
1 $2,567 N/A
2 $2,611 N/A
3 $2,764 $3,096
4 $2,904 $3,252
5 $3,036 $3,400
6 $3,164 $3,544
7 $3,266 $3,658
8 $3,314 $3,712
9 $3,362 $3,765
10 $3,412 $3,821
11 $3,461 $3,876
12 $3,511 $3,932
13 $3,561 $3,988
14 $3,614 $4,048
15 $3,667 $4,107
16 $3,722 $4,169
17 $3,777 $4,230
18 $3,834 $4,294
19 $3,892 $4,359
20 $3,950 $4,424
21 $4,011 $4,492
22 $4,072 $4,561
23 $4,136 $4,632
24 $4,200 $4,704
25 $4,264 $4,776
26 $4,330 $4,850
27 $4,398 $4,926
28 $4,467 $5,003
29 $4,538 $5,083
30+ $4,538 $5,083
2003‑2004 MONTHLY SALARY SCHEDULE
"M" TEACHERS
Years of "M" NBPTS
Experience Teachers Certification
0 $2,778 N/A
1 $2,824 N/A
2 $2,872 N/A
3 $3,040 $3,405
4 $3,194 $3,577
5 $3,340 $3,741
6 $3,480 $3,898
7 $3,593 $4,024
8 $3,645 $4,082
9 $3,698 $4,142
10 $3,753 $4,203
11 $3,807 $4,264
12 $3,862 $4,325
13 $3,917 $4,387
14 $3,975 $4,452
15 $4,034 $4,518
16 $4,094 $4,585
17 $4,155 $4,654
18 $4,217 $4,723
19 $4,281 $4,795
20 $4,345 $4,866
21 $4,412 $4,941
22 $4,479 $5,016
23 $4,550 $5,096
24 $4,620 $5,174
25 $4,690 $5,253
26 $4,763 $5,335
27 $4,838 $5,419
28 $4,914 $5,504
29 $4,992 $5,591
30+ $4,992 $5,591
SECTION 7.1.(c) Certified public school teachers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers. Certified public school teachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers.
SECTION 7.1.(d) Effective for the 2003‑2004 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 2003‑2004 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.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 7.2.(a) Effective for the 2003‑2004 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 2003‑2004 fiscal year funds necessary to implement the salary schedule for school‑based administrators as provided in this section. These funds shall be used for State‑paid employees only.
SECTION 7.2.(b) The base salary schedule for school‑based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2003‑2004 fiscal year, commencing July 1, 2003, is as follows:
2003‑2004
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 $3,226 ‑ ‑ ‑ ‑
5 $3,373 ‑ ‑ ‑ ‑
6 $3,515 ‑ ‑ ‑ ‑
7 $3,629 ‑ ‑ ‑ ‑
8 $3,681 $3,681 ‑ ‑ ‑
9 $3,735 $3,735 ‑ ‑ ‑
10 $3,791 $3,791 $3,845 ‑ ‑
11 $3,845 $3,845 $3,901 ‑ ‑
12 $3,901 $3,901 $3,956 $4,015 ‑
13 $3,956 $3,956 $4,015 $4,074 $4,135
14 $4,015 $4,015 $4,074 $4,135 $4,197
15 $4,074 $4,074 $4,135 $4,197 $4,259
16 $4,135 $4,135 $4,197 $4,259 $4,324
17 $4,197 $4,197 $4,259 $4,324 $4,388
18 $4,259 $4,259 $4,324 $4,388 $4,456
19 $4,324 $4,324 $4,388 $4,456 $4,524
20 $4,388 $4,388 $4,456 $4,524 $4,596
21 $4,456 $4,456 $4,524 $4,596 $4,666
22 $4,524 $4,524 $4,596 $4,666 $4,737
23 $4,596 $4,596 $4,666 $4,737 $4,811
24 $4,666 $4,666 $4,737 $4,811 $4,886
25 $4,737 $4,737 $4,811 $4,886 $4,963
26 $4,811 $4,811 $4,886 $4,963 $5,042
27 $4,886 $4,886 $4,963 $5,042 $5,143
28 $4,963 $4,963 $5,042 $5,143 $5,246
29 $5,042 $5,042 $5,143 $5,246 $5,351
30 $5,143 $5,143 $5,246 $5,351 $5,458
31 $5,246 $5,246 $5,351 $5,458 $5,567
32 ‑ $5,351 $5,458 $5,567 $5,678
33 ‑ ‑ $5,567 $5,678 $5,792
34 ‑ ‑ $5,678 $5,792 $5,908
35 ‑ ‑ ‑ $5,908 $6,026
36 ‑ ‑ ‑ $6,026 $6,147
37 ‑ ‑ ‑ ‑ $6,270
2003‑2004
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 $4,259 ‑ ‑ ‑
15 $4,324 ‑ ‑ ‑
16 $4,388 $4,456 ‑ ‑
17 $4,456 $4,524 $4,666 ‑
18 $4,524 $4,596 $4,737 $4,811
19 $4,596 $4,666 $4,811 $4,886
20 $4,666 $4,737 $4,886 $4,963
21 $4,737 $4,811 $4,963 $5,042
22 $4,811 $4,886 $5,042 $5,143
23 $4,886 $4,963 $5,143 $5,246
24 $4,963 $5,042 $5,246 $5,351
25 $5,042 $5,143 $5,351 $5,458
26 $5,143 $5,246 $5,458 $5,567
27 $5,246 $5,351 $5,567 $5,678
28 $5,351 $5,458 $5,678 $5,792
29 $5,458 $5,567 $5,792 $5,908
30 $5,567 $5,678 $5,908 $6,026
31 $5,678 $5,792 $6,026 $6,147
32 $5,792 $5,908 $6,147 $6,270
33 $5,908 $6,026 $6,270 $6,395
34 $6,026 $6,147 $6,395 $6,523
35 $6,147 $6,270 $6,523 $6,653
36 $6,270 $6,395 $6,653 $6,786
37 $6,395 $6,523 $6,786 $6,922
38 $6,523 $6,653 $6,922 $7,060
39 ‑ $6,786 $7,060 $7,201
40 ‑ $6,922 $7,201 $7,345
41 ‑ ‑ $7,345 $7,492
SECTION 7.2.(c) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools, shall be determined in accordance with the following schedule:
Number of Teachers
Classification Supervised
Assistant Principal
Principal I Fewer than 11 Teachers
Principal II 11‑21 Teachers
Principal III 22‑32 Teachers
Principal IV 33‑43 Teachers
Principal V 44‑54 Teachers
Principal VI 55‑65 Teachers
Principal VII 66‑100 Teachers
Principal VIII More than 100 Teachers
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non‑State funds or the principal or teacher assistants.
The beginning classification for principals in alternative schools shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 7.2.(d) A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal. A principal or assistant principal shall also continue to receive any additional State‑funded percentage increases earned for the 1997‑1998, 1998‑1999, and the 1999‑2000 school years for improvement in student performance or maintaining a safe and orderly school.
SECTION 7.2.(e) Principals and assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
SECTION 7.2.(f) There shall be no State requirement that superintendents in each local school unit shall receive in State‑paid salary at least one percent (1%) more than the highest paid principal receives in State salary in that school unit; provided, however, the additional State‑paid salary a superintendent who was employed by a local school administrative unit for the 1992‑1993 fiscal year received because of that requirement shall not be reduced because of this subsection for subsequent fiscal years that the superintendent is employed by that local school administrative unit so long as the superintendent is entitled to at least that amount of additional State‑paid salary under the rules in effect for the 1992‑1993 fiscal year.
SECTION 7.2.(g) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
(1) If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
(2) If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 7.2.(i) Participants in an approved full‑time masters in school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the masters program. For the 2003‑2004 fiscal year, the stipend shall not exceed the difference between the beginning salary of an assistant principal and fifty percent (50%) of any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. For the 2004‑2005 fiscal year and subsequent fiscal years, the stipend shall not exceed the difference between the beginning salary of an assistant principal and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full‑time masters in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.
SECTION 7.2.(j) During the 2003‑2004 fiscal year, the placement on the salary schedule of an administrator with a one‑year provisional assistant principal's certificate shall be at the entry‑level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 7.3.(a) The monthly salary ranges that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2003‑2004 fiscal year, beginning July 1, 2003. The top of these ranges are increased by one and eighty‑one hundredths percent (1.81%) annually for full‑time employees.
School Administrator I $2,932 $5,308
School Administrator II $3,112 $5,634
School Administrator III $3,303 $5,979
School Administrator IV $3,436 $6,221
School Administrator V $3,574 $6,473
School Administrator VI $3,792 $6,869
School Administrator VII $3,945 $7,147
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, 2003.
SECTION 7.3.(b) The monthly salary ranges that follow apply to public school superintendents for the 2003‑2004 fiscal year, beginning July 1, 2003. The top of these ranges are increased by one and eighty‑one hundredths percent (1.81%) annually for full‑time employees.
Superintendent I $4,187 $7,586
Superintendent II $4,445 $8,047
Superintendent III $4,716 $8,541
Superintendent IV $5,005 $9,062
Superintendent V $5,312 $9,618
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 Director of the Budget shall transfer from the Reserve for Compensation Increases created in this act for fiscal year 2003‑2004, beginning July 1, 2003, funds necessary to provide an average annual salary increase of one and eighty‑one hundredths percent (1.81%), including funds for the employer's retirement and social security contributions, commencing July 1, 2003, for all permanent full‑time personnel paid from the Central Office Allotment. The State Board of Education shall allocate these funds to local school administrative units. The local boards of education shall establish guidelines for providing their salary increases to these personnel.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 7.4.(a) The Director of the Budget shall transfer from the Reserve for Compensation Increases created in this act for fiscal year 2003‑2004, commencing July 1, 2003, funds necessary to provide a salary increase of one and eighty‑one hundredths percent (1.81%), including funds for the employer's retirement and social security contribution, commencing July 1, 2003, for all noncertified public school employees whose salaries are supported from the State's General Fund.
SECTION 7.4.(b) Local boards of education shall increase the rates of pay for all such employees who were employed for all or part of fiscal year 2002‑2003 and who continue their employment for fiscal year 2003‑2004 by at least one and eighty‑one hundredths percent (1.81%), commencing July 1, 2003. For part‑time employees, the pay increase shall be pro rata based on the number of hours worked.
SECTION 7.4.(c) These funds shall not be used for any purpose other than for the salary increases and necessary employer contributions provided by this section.
SECTION 7.4.(d) The State Board of Education may adopt salary ranges for noncertified personnel to support increases of one and eighty‑one hundredths percent (1.81%) for the 2003‑2004 school year.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
RESERVE FOR EXPERIENCE STEP INCREASE FOR TEACHERS AND PRINICPALS IN PUBLIC SCHOOLS
SECTION 7.5.(a) Funds in the Reserve for Experience Step Increase for Teachers and Principals in Public Schools shall be used for experience step increases for employees of schools operated by a local board of education, the Department of Health and Human Services, the Department of Correction, or the Department of Juvenile Justice and Delinquency Prevention, who are paid on the teacher salary schedule or the principal and assistant principal salary schedule.
SECTION 7.5.(b) Effective July 1, 2003, any permanent certified personnel employed on July 1, 2003, and paid on the teacher salary schedule with 29+ years of experience shall receive a one‑time bonus equivalent to the average increase of the 26 to 29 year steps. Effective July 1, 2003, any permanent personnel employed on July 1, 2003, and paid at the top of the principal and assistant principal salary schedule shall receive a one‑time bonus equivalent to two percent (2%). For permanent part‑time personnel, the one‑time bonus shall be adjusted pro rata. Personnel defined under G.S. 115C‑325(a)(5a) are not eligible to receive the bonus.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SUPPLEMENTAL FUNDING IN LOW‑WEALTH COUNTIES
SECTION 7.6.(a) Funds for Supplemental Funding. – The General Assembly finds that it is appropriate to provide supplemental funds in low‑wealth counties to allow those counties to enhance the instructional program and student achievement. Therefore, funds are appropriated to State Aid to Local School Administrative Units for the 2003‑2004 fiscal year and the 2004‑2005 fiscal year to be used for supplemental funds for the schools.
SECTION 7.6.(b) Use of Funds for Supplemental Funding. – All funds received pursuant to this section shall be used only: (i) to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, school computer technicians, instructional supplies and equipment, staff development, and textbooks; (ii) for salary supplements for instructional personnel and instructional support personnel; and (iii) to pay an amount not to exceed ten thousand dollars ($10,000) of the plant operation contract cost charged by the Department of Public Instruction for services.
Local boards of education are encouraged to use at least twenty‑five percent (25%) of the funds received pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 and children who are performing at Level I or II on the writing tests in grades 4 and 7. Local boards of education shall report to the State Board of Education on an annual basis on funds used for this purpose, and the State Board shall report this information to the Joint Legislative Education Oversight Committee. These reports shall specify how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools, such as teacher recruitment, closing the achievement gap, improving student accountability, addressing the needs of at‑risk students, and establishing and maintaining safe schools.
SECTION 7.6.(c) Definitions. – As used in this section:
(1) "Anticipated county property tax revenue availability" means the county‑adjusted property tax base multiplied by the effective State average tax rate.
(2) "Anticipated total county revenue availability" means the sum of the:
a. Anticipated county property tax revenue availability,
b. Local sales and use taxes received by the county that are levied under Chapter 1096 of the 1967 Session Laws or under Subchapter VIII of Chapter 105 of the General Statutes,
c. Sales tax hold harmless reimbursement received by the county under G.S. 105‑521, and
d. Fines and forfeitures deposited in the county school fund for the most recent year for which data are available.
(3) "Anticipated total county revenue availability per student" means the anticipated total county revenue availability for the county divided by the average daily membership of the county.
(4) "Anticipated State average revenue availability per student" means the sum of all anticipated total county revenue availability divided by the average daily membership for the State.
(5) "Average daily membership" means average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education. If a county contains only part of a local school administrative unit, the average daily membership of that county includes all students who reside within the county and attend that local school administrative unit.
(6) "County‑adjusted property tax base" shall be computed as follows:
a. Subtract the present‑use value of agricultural land, horticultural land, and forestland in the county, as defined in G.S. 105‑277.2, from the total assessed real property valuation of the county,
b. Adjust the resulting amount by multiplying by a weighted average of the three most recent annual sales assessment ratio studies,
c. Add to the resulting amount the:
1. Present‑use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105‑277.2,
2. Value of property of public service companies, determined in accordance with Article 23 of Chapter 105 of the General Statutes, and
3. Personal property value for the county.
(7) "County‑adjusted property tax base per square mile" means the county‑adjusted property tax base divided by the number of square miles of land area in the county.
(8) "County wealth as a percentage of State average wealth" shall be computed as follows:
a. Compute the percentage that the county per capita income is of the State per capita income and weight the resulting percentage by a factor of five‑tenths,
b. Compute the percentage that the anticipated total county revenue availability per student is of the anticipated State average revenue availability per student and weight the resulting percentage by a factor of four‑tenths,
c. Compute the percentage that the county‑adjusted property tax base per square mile is of the State‑adjusted property tax base per square mile and weight the resulting percentage by a factor of one‑tenth,
d. Add the three weighted percentages to derive the county wealth as a percentage of the State average wealth.
(9) "Effective county tax rate" means the actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.
(10) "Effective State average tax rate" means the average of effective county tax rates for all counties.
(10a) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(11) "Per capita income" means the average for the most recent three years for which data are available of the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis, including any reported modifications for prior years as outlined in the most recent report.
(12) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(13) "State average current expense appropriations per student" means the most recent State total of county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(14) "State average adjusted property tax base per square mile" means the sum of the county‑adjusted property tax bases for all counties divided by the number of square miles of land area in the State.
(14a) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(15) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.6.(d) Eligibility for Funds. – Except as provided in subsection (h) of this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than one hundred percent (100%).
SECTION 7.6.(e) Allocation of Funds. – Except as provided in subsection (g) of this section, the amount received per average daily membership for a county shall be the difference between the State average current expense appropriations per student and the current expense appropriations per student that the county could provide given the county's wealth and an average effort to fund public schools. (To derive the current expense appropriations per student that the county could be able to provide given the county's wealth and an average effort to fund public schools, multiply the county wealth as a percentage of State average wealth by the State average current expense appropriations per student.)
The funds for the local school administrative units located in whole or in part in the county shall be allocated to each local school administrative unit located in whole or in part in the county based on the average daily membership of the county's students in the school units.
If the funds appropriated for supplemental funding are not adequate to fund the formula fully, each local school administrative unit shall receive a pro rata share of the funds appropriated for supplemental funding.
SECTION 7.6.(f) Formula for Distribution of Supplemental Funding Pursuant to This Section Only. – The formula in this section is solely a basis for distribution of supplemental funding for low‑wealth counties 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 low‑wealth counties.
SECTION 7.6.(g) Minimum Effort Required. – Counties that had effective tax rates in the 1996‑1997 fiscal year that were above the State average effective tax rate but that had effective rates below the State average in the 1997‑1998 fiscal year or thereafter shall receive reduced funding under this section. This reduction in funding shall be determined by subtracting the amount that the county would have received pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws from the amount that the county would have received if qualified for full funding and multiplying the difference by ten percent (10%). This method of calculating reduced funding shall apply one time only.
This method of calculating reduced funding shall not apply in cases in which the effective tax rate fell below the statewide average effective tax rate as a result of a reduction in the actual property tax rate. In these cases, the minimum effort required shall be calculated in accordance with Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
If the county documents that it has increased the per student appropriation to the school current expense fund in the current fiscal year, the State Board of Education shall include this additional per pupil appropriation when calculating minimum effort pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
SECTION 7.6.(h) Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2003‑2005 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety‑five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding, or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
SECTION 7.6.(i) Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2004, if it determines that counties have supplanted funds.
SECTION 7.6.(j) Department of Revenue Reports. – The Department of Revenue shall provide to the Department of Public Instruction a preliminary report for the current fiscal year of the assessed value of the property tax base for each county prior to March 1 of each year and a final report prior to May 1 of each year. The reports shall include for each county the annual sales assessment ratio and the taxable values of (i) total real property, (ii) the portion of total real property represented by the present‑use value of agricultural land, horticultural land, and forestland as defined in G.S. 105‑277.2, (iii) property of public service companies determined in accordance with Article 23 of Chapter 105 of the General Statutes, and (iv) personal property.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
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 sixty‑nine thousand seven hundred four dollars ($669,704), excluding textbooks.
(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.
SECTION 7.7.(b) Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2003‑2005 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety‑five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
SECTION 7.7.(c) Phase‑Out Provisions. – If a local school administrative unit becomes ineligible for funding under this formula solely because of an increase in the county‑adjusted property tax base per student of the county in which the local school administrative unit is located, funding for that unit shall be phased out over a two‑year period. For the first year of ineligibility, the unit shall receive the same amount it received for the prior fiscal year. For the second year of ineligibility, it shall receive one‑half of that amount.
If a local school administrative unit becomes ineligible for funding under this formula solely because of an increase in the population of the county in which the local school administrative unit is located, funding for that unit shall be continued for five years after the unit becomes ineligible.
SECTION 7.7.(d) Definitions. – As used in this section:
(1) "Average daily membership" means within two percent (2%) of the average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education.
(2) "County‑adjusted property tax base per student" means the total assessed property valuation for each county, adjusted using a weighted average of the three most recent annual sales assessment ratio studies, divided by the total number of students in average daily membership who reside within the county.
(2a) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(3) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(4) "State‑adjusted property tax base per student" means the sum of all county adjusted property tax bases divided by the total number of students in average daily membership who reside within the State.
(4a) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(5) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued during the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.7.(e) Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2004, if it determines that counties have supplanted funds.
SECTION 7.7.(f) Use of Funds. – Local boards of education are encouraged to use at least twenty percent (20%) of the funds they receive pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 and children who are performing at Level I or II on the writing tests in grades 4 and 7. Local boards of education shall report to the State Board of Education on an annual basis on funds used for this purpose, and the State Board shall report this information to the Joint Legislative Education Oversight Committee. These reports shall specify how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools such as teacher recruitment, closing the achievement gap, improving student accountability, addressing the needs of at‑risk students, and establishing and maintaining safe schools.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
APPROPRIATIONS FOR CONTINUALLY LOW‑PERFORMING SCHOOLS
SECTION 7.8. Of funds appropriated from the General Fund to State Aid to Local School Administrative Units, the sum of one million nine hundred fifty‑six thousand one hundred fifteen dollars ($1,956,115) for the 2003‑2004 and 2004‑2005 fiscal years shall be used to provide the State's chronically low‑performing schools with tools needed to dramatically improve student achievement. These funds shall be used to implement any of the following strategies at the schools that have not previously been implemented with State or other funds:
(1) The sum of one million six hundred fifty‑seven thousand three hundred forty‑five dollars ($1,657,345) for the 2003‑2004 and 2004‑2005 fiscal years 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 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.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
IMMEDIATE ASSISTANCE TO THE HIGHEST PRIORITY ELEMENTARY SCHOOLS
SECTION 7.9. Of funds appropriated from the General Fund to State Aid to Local School Administrative Units, the sum of ten million one hundred thirty‑four thousand six hundred seven dollars ($10,134,607) for the 2003‑2004 and 2004‑2005 fiscal years shall be budgeted to provide the State's lowest performing elementary schools with the tools needed to dramatically improve student achievement. These funds shall be used for the 37 elementary schools at which, for the 1999‑2000 school year over eighty percent (80%) of the students qualified for free or reduced‑price lunches, and no more than fifty‑five percent (55%) of the students performed at or above grade level. Of these funds:
(1) The sum of six million ninety‑three thousand one hundred eighty‑one dollars ($6,093,181) for the 2003‑2004 and 2004‑2005 fiscal years shall be used to reduce class size at each of these schools to ensure that no class kindergarten through third grade has more than 15 students;
(2) The sum of two million two hundred sixty‑six thousand twenty‑six dollars ($2,266,026) for the 2003‑2004 and 2004‑2005 fiscal years shall be used to extend all teachers' contracts at these schools for a total of 10 days, with five days for staff development, including staff development on methods to individualize instruction in smaller classes, and preparation for the 2003‑2004 and 2004‑2005 school years, and five additional days of instruction with related costs for other than teachers' salaries; and
(3) The sum of one million seven hundred seventy‑five thousand four hundred dollars ($1,775,400) for the 2003‑2004 and 2004‑2005 fiscal years shall be used to provide one additional instructional support position at each priority school.
No funds from the teacher assistant allotment category may be allotted to the local school administrative units for students assigned to these schools. Any teacher assistants displaced from jobs in these high‑priority elementary schools shall be given preferential consideration for vacant teacher assistant positions at other schools, provided their job performance has been satisfactory. Nothing in this section prevents the local school administrative unit from placing teacher assistants in these schools.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
EVALUATION OF INITIATIVES TO ASSIST HIGH‑PRIORITY SCHOOLS
SECTION 7.10.(a) In order for the high‑priority schools identified in Section 7.9 of this act to remain eligible for the additional resources provided in this section, the schools must meet the expected growth for each year and must achieve high growth for at least two out of three years based on the State Board of Education's annual performance standards set for each school. No adjustment in the allotment of resources based on performance shall be made until the 2004‑2005 school year.
SECTION 7.10.(b) All teaching positions allotted for students in high‑priority schools and continually low‑performing schools in those grades targeted for smaller class sizes shall be assigned to and teach in those grades and in those schools. The maximum class size in grades K‑3 in high‑priority schools and in grades K‑5 in continually low‑performing schools shall be no more than one student above the allotment ratio in that grade. The Department of Public Instruction shall monitor class sizes at these schools at the end of the first month of school and report to the State Board of Education on the actual class sizes at these schools. If the local school administrative unit notifies the State Board of Education that they do not have sufficient resources to adhere to the class size maximum requirements and requests additional teaching positions, the State Board shall verify the need for additional positions. If the additional resources are determined necessary, the State Board of Education may allocate additional teaching positions to the unit from the Reserve for Average Daily Membership adjustments.
SECTION 7.10.(c) 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 by the State Board of Education to contract with an outside organization to evaluate the initiatives set forth in this section. The evaluation shall include:
(1) An assessment of the overall impact these initiatives have had on student achievement;
(2) An assessment of the effectiveness of each individual initiative set for this section in improving student achievement;
(3) An identification of changes in staffing patterns, instructional methods, staff development, and parental involvement as a result of these initiatives;
(4) An accounting of how funds and personnel resources made available for these schools were utilized and the impact of varying patterns of utilization on changes in student achievement;
(5) An assessment of the impact of bonuses for mathematics, science, and special education teachers on (i) the retention of these teachers in the targeted schools, (ii) the recruitment of teachers in these specialties into targeted schools, (iii) the recruitment of teachers certified in these disciplines, and (iv) student achievement in schools at which these teachers receive these bonuses; and
(6) Recommendations for the continuance and improvement of these initiatives.
The State Board of Education shall make a report to the Joint Legislative Education Oversight Committee regarding the results of this evaluation by December 1 of each year. The State Board of Education shall submit its recommendations for changes to these initiatives to the Committee at anytime.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
AT‑RISK STUDENT SERVICES/ALTERNATIVE SCHOOLS
SECTION 7.11. The State Board of Education may use up to two hundred thousand dollars ($200,000) of the funds in the Alternative Schools/At‑Risk Student allotment each year for the 2003‑2004 fiscal year and for the 2004‑2005 fiscal year to implement G.S. 115C‑12(24).
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
ADDITIONAL TEACHER POSITIONS FOR SECOND GRADE
SECTION 7.12.(a) The maximum class size limits for second grade established by the State Board of Education for the 2003‑2004 school year shall be reduced by two from the 2002‑2003 limits, based on an allotment ratio of one teacher for every 18 students.
SECTION 7.12.(b) For the 2003‑2004 school year, local school administrative units shall use these additional teacher positions to reduce class size in second grade. If local school administrative units are unable to fill these positions with qualified teachers for the 2003-2004 school year, they may use these funds for teacher assistants for second grade classes.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 7.13. The State Board of Education shall allocate funds for children with disabilities on the basis of two thousand six hundred seventy dollars and twenty‑eight cents ($2,670.28) per child for a maximum of 165,266 children for the 2003‑2004 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 2003‑2004 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.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
FUNDS FOR ACADEMICALLY GIFTED CHILDREN
SECTION 7.14. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of eight hundred eighty‑four dollars and fifty‑five cents ($884.55) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2003‑2004 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit. The State Board shall allocate funds for no more than 53,712 children for the 2003‑2004 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.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
STUDENTS WITH LIMITED ENGLISH PROFICIENCY
SECTION 7.15.(a) The State Board of Education shall develop guidelines for identifying and providing services to students with limited proficiency in the English language.
The State Board shall allocate these funds to local school administrative units and to charter schools under a formula that takes into account the average percentage of students in the units or the charters over the past three years who have limited English proficiency. The State Board shall allocate funds to a unit or a charter school only if (i) average daily membership of the unit or the charter school includes at least 20 students with limited English proficiency or (ii) students with limited English proficiency comprise at least two and one‑half percent (2.5%) of the average daily membership of the unit or charter school. For the portion of the funds that is allocated on the basis of the number of identified students, the maximum number of identified students for whom a unit or charter school receives funds shall not exceed 10 and six‑tenths percent (10.6%) of its average daily membership.
Local school administrative units shall use funds allocated to them to pay for classroom teachers, teacher assistants, tutors, textbooks, classroom materials/instructional supplies/equipment, transportation costs, and staff development of teachers for students with limited English proficiency.
A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds.
SECTION 7.15.(b) The Department of Public Instruction shall prepare a current head count of the number of students classified with limited English proficiency by December 1 of each year.
Students in the head count shall be assessed at least once every three years to determine their level of English proficiency. A student who scores "superior" on the standard English language proficiency assessment instrument used in this State shall not be included in the head count of students with limited English proficiency.
SECTION 7.15.(c) The State Board of Education shall review the allotment formula for funding for students with limited English proficiency. In its review, the Board shall consider whether the proportion of funds allotted on the basis of concentration of students with limited English proficiency in a local school administrative unit is at the proper level or should be revised. The Board shall report the results of its review and its recommendations to the Joint Legislative Education Oversight Committee by November 15, 2003.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
SECTION 7.16.(a) The State Board of Education shall use funds appropriated for State Aid to Local School Administrative Units for the 2003‑2004 fiscal year to provide incentive funding for schools that met or exceeded the projected levels of improvement in student performance during the 2002‑2003 school year, in accordance with the ABCs of Public Education Program. In accordance with State Board of Education policy:
(1) Incentive awards in schools that achieve higher than expected improvements may be up to:
a. One thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be up to:
a. Seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Three hundred seventy‑five dollars ($375.00) for each teacher assistant.
SECTION 7.16.(b) The State Board of Education may use funds appropriated to State Aid to Local School Administrative Units for assistance teams to low‑performing schools.
SECTION 7.16.(c) It is the intent of the General Assembly, in future fiscal years, to address efforts in schools to close the achievement gap by providing an incentive for schools that make adequate yearly progress as required by the No Child Left Behind Act of 2001.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
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 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: (1) the criteria for selecting LEAs and schools to receive assistance, (2) measurable goals and objectives for the assistance program, (3) an explanation of the assistance provided, (4) findings from the assistance program, (5) actual expenditures by category, (6) recommendations for the continuance of this program, and (7) any other information the State Board deems necessary.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
EXPENDITURE OF FUNDS TO IMPROVE STUDENT ACCOUNTABILITY
SECTION 7.18.(a) Funds appropriated for the 2003‑2004 and 2004‑2005 fiscal years for Student Accountability Standards shall be used to assist students to perform at or above grade level in reading and mathematics in grades 3‑8 as measured by the State's end‑of‑grade tests. The SBE shall allocate these funds to LEAs based on the number of students who score at Level I or Level II on either reading or mathematics end‑of‑grade tests in grades 3‑8. Funds in the allocation category shall be used to improve the academic performance of (i) students who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 or (ii) students who are performing at Level I or II on the writing tests in grades 4 and 7. These funds may also be used to improve the academic performance of students who are performing at Level I or II on the high school end‑of‑course tests. These funds shall not be transferred to other allocation categories or otherwise used for other purposes. Except as otherwise provided by law, local boards of education may transfer other funds available to them into this allocation category.
The principal of a school receiving these funds, in consultation with the faculty and the site‑based management team, shall implement plans for expending these funds to improve the performance of students.
Local boards of education are encouraged to use federal funds such as Title I Comprehensive School Reform Development Funds and to examine the use of State funds to ensure that every student is performing at or above grade level in reading and mathematics.
These funds shall be allocated to local school administrative units for the 2003‑2004 fiscal year within 30 days of the date this act becomes law.
SECTION 7.18.(b) Funds appropriated for Student Accountability Standards shall not revert at the end of each fiscal year but shall remain available for expenditure until August 31 of the subsequent fiscal year.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
FUNDS FOR TEACHER RECRUITMENT INITIATIVES
SECTION 7.19. The State Board of Education may use up to two hundred thousand dollars ($200,000) of the funds appropriated for State Aid to Local School Administrative Units each year for the 2003‑2004 fiscal year and for the 2004‑2005 fiscal year to enable teachers who have received NBPTS certification or who have otherwise received special recognition to advise the State Board of Education on teacher recruitment and other strategic priorities of the State Board.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
RECRUITMENT AND RETENTION INITIATIVE TO ADDRESS TEACHER SHORTAGE
SECTION 7.20.(a) Of the funds appropriated from the General Fund to State Aid to Local School Administrative Units, the sum of two million eight hundred ninety thousand dollars ($2,890,000) for the 2003‑2004 and 2004‑2005 fiscal years shall be used to provide annual bonuses of one thousand eight hundred dollars ($1,800) to teachers certified in and teaching in the fields of mathematics, science, or special education in grades 6 through 12 at middle and high schools with eighty percent (80%) or more of the students eligible for free or reduced lunch or with fifty percent (50%) or more of students performing below grade level in Algebra I and Biology. The bonus shall be paid monthly with matching benefits. Teachers shall remain eligible for the bonuses so long as they continue to teach in one of these disciplines at a school that was eligible for the bonus program when the teacher first received this bonus.
SECTION 7.20.(b) In accordance with G.S. 115C‑325 and by way of clarification, it shall not constitute a demotion as that term is defined in G.S. 115C‑325(a)(4) if:
(1) A teacher who receives a bonus pursuant to this section is reassigned to a school at which there is no such bonus;
(2) A teacher who receives a bonus pursuant to this section is reassigned to teach in a field for which there is no such bonus; or
(3) A teacher receives a bonus pursuant to this section and the bonus is subsequently discontinued or reduced.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
FUNDS FOR THE TESTING AND IMPLEMENTATION OF THE NEW STUDENT INFORMATION SYSTEM
SECTION 7.21.(a) The State Board of Education may transfer up to one million dollars ($1,000,000) in funds appropriated for the Uniform Education Reporting System for the 2003‑2004 fiscal year and up to one million dollars ($1,000,000) in funds appropriated for the Uniform Education Reporting System for the 2004‑2005 fiscal year to the Department of Public Instruction to lease or purchase equipment necessary for the testing and implementation of NC WISE, the new student information system in the public schools.
Testing shall include an emphasis on the security of the system.
SECTION 7.21.(b) Funds appropriated for the Uniform Education Reporting System shall not revert at the end of the 2003‑2004 and 2004‑2005 fiscal years, but shall remain available until expended.
SECTION 7.21.(c) This section becomes effective June 30, 2003.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 7.22. The State Board of Education may expend up to five hundred thousand dollars ($500,000) each year for the 2003‑2004 and 2004‑2005 fiscal years from unexpended funds for certified employees' salaries to pay expenses related to pending litigation.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
LOCAL EDUCATION AGENCY FLEXIBILITY
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. The State Board shall determine the amount of the reduction for each unit on the basis of average daily membership.
Each unit shall report to the Department of Public Instruction on the discretionary budget reductions it has identified for the unit within 30 days of the date this act becomes law. No later than December 31, 2003, 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.
For fiscal year 2003‑2004, 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 December 15, 2003, for fiscal year 2004‑2005, the State Board of Education will determine the changes to the allotment categories to make such reductions permanent.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
BASE BUDGET REDUCTION TO DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.24. Notwithstanding any other provision of law, the Department of Public Instruction may use salary reserve funds and other funds, and may transfer funds within the Department's continuation budget to implement budget reductions for the 2003‑2004 fiscal year.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
REPLACEMENT SCHOOL BUSES FUNDS
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) 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 or second 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 7.25.(b) Any term contract for the purchase or lease‑purchase of school buses or school activity buses shall not require vendor payment of the electronic procurement transaction fee of the North Carolina E‑Procurement Service.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
EXPENDITURES FOR DRIVING ELIGIBILITY CERTIFICATES
SECTION 7.26. The State Board of Education may use funds appropriated for drivers education for the 2003‑2004 fiscal year and for the 2004‑2005 fiscal year for driving eligibility certificates.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
DISCREPANCIES BETWEEN ANTICIPATED AND ACTUAL ADM
SECTION 7.27.(a) If the State Board of Education does not have sufficient resources in the ADM Contingency Reserve line item to make allotment adjustments in accordance with the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual, the State Board of Education may use funds appropriated to State Aid for Public Schools for this purpose.
SECTION 7.27.(b) If the higher of the first or second month average daily membership in a local school administrative unit is at least two percent (2%) or 100 students lower than the anticipated average daily membership used for allotments for the unit, the State Board of Education shall reduce allotments for the unit. The reduced allotments shall be based on the higher of the first or second month average daily membership plus one‑half of the number of students overestimated in the anticipated average daily membership.
The allotments reduced pursuant to this subsection shall include only those allotments that may be increased pursuant to the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
CHARTER SCHOOL ADVISORY COMMITTEE/CHARTER SCHOOL EVALUATION
SECTION 7.28. The State Board of Education may spend up to fifty thousand dollars ($50,000) a year from the State Aid to Local School Administrative Units for the 2003‑2004 and 2004‑2005 fiscal years to continue support of a charter school advisory committee and to continue to evaluate charter schools.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
STUDY OF ISSUES RELATED TO RAPID GROWTH IN STUDENT POPULATION
SECTION 7.29. The Joint Legislative Education Oversight Committee shall study the effects of rapid growth in student population on local school administrative units. In the course of the study, the Committee shall consider issues related to rapid growth and strategies for addressing these issues. The Committee shall report to the 2004 Regular Session of the General Assembly on its findings and recommendations.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
MENTOR TEACHER FUNDS MAY BE USED FOR FULL‑TIME MENTORS
SECTION 7.30.(a) The State Board of Education shall grant flexibility to a local board of education regarding the use of mentor funds to provide mentoring support, provided the local board submits a detailed plan on the use of the funds to the State Board and the State Board approves that plan. The plan shall include information on how all mentors in the local school administrative unit have been or will be adequately trained to provide mentoring support.
Local boards of education shall use funds allocated for mentor teachers to provide mentoring support to all State‑paid newly certified teachers, second‑year teachers who were assigned mentors during the prior school year, and entry‑level instructional support personnel who have not previously been teachers.
SECTION 7.30.(b) The State Board of Education, after consultation with the Professional Teaching Standards Commission, shall adopt standards for mentor training.
SECTION 7.30.(c) Each local board of education with a plan approved pursuant to subsection (a) of this section shall report to the State Board of Education on the impact of its mentor program on teacher retention. The State Board of Education shall report to the Joint Legislative Education Oversight Committee by October 15, 2004, on the characteristics of mentor programs that are most effective in retaining teachers.
SECTION 7.30.(d) The Winston‑Salem Forsyth, Charlotte Mecklenburg, and Wake County Public School systems may continue with their existing pilot mentor programs, but shall submit plans as required in subsection (a) of this section. These three local boards of education shall report as required in subsection (c) of this section.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 7.32. The State Board of Education shall review the standards for the number of school nurses recommended in the Basic Education Program to determine whether these standards are being met by the local school administrative units. The State Board shall compare the current standards with standards recommended by national health organizations to determine whether the current standards are adequate to meet the changing needs and demands for health services of the current and projected school populations. In its review, the Board shall consider the need to change legal requirements for the provision of health related services to public school students in its review.
The State Board of Education shall make recommendations on the ratio of school nurses to student populations that it considers necessary, as well as recommendations for the provision of school nurse services, to the Joint Legislative Education Oversight Committee by February 15, 2004.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
transfer of public school capital fund
SECTION 7.33.(a) The Public School Building Capital Fund is transferred from the Office of State Budget and Management to the Department of Public Instruction, as if by a Type I transfer as defined in G.S. 143A‑6, with all the elements of such a transfer.
SECTION 7.33.(b) G.S. 115C‑546.1(c) reads as rewritten:
"(c) The Fund shall be
administered by the Office of State Budget and Management. Department
of Public Instruction."
Requested by: Senators Metcalf, Garrou, Dalton, Hagan
funds for regional educational services alliances
SECTION 7.34. Local boards of education may use up to ten percent (10%) of State funds allocated for staff development to contract with Regional Education Services Alliances without such funds being subject to the provisions of G.S. 115C‑105.30.
Additional funds distributed pursuant to G.S. 115C‑105.30 may also be used to contract with Regional Education Services Alliances.
Requested by: Senators Hagan, Lucas, Metcalf, Garrou, Dalton
pilot programs on financial literacy
SECTION 7.35. The State Board of Education shall establish a pilot program authorizing and assisting up to five local school administrative units in the implementation of programs on teaching personal financial literacy. The purpose of the pilot program is to determine the best methods of equipping students with the knowledge and skills they need, before they become self‑supporting, to make critical decisions regarding their personal finances. The components of personal financial literacy covered in the pilot program shall include, at a minimum, consumer financial education, personal finance, and personal credit.
Prior to selecting the pilot units, the State Board of Education shall develop a curriculum, materials, and guidelines for local boards of education to use in implementing a program of instruction on personal financial literacy. The State Board shall also provide information to local boards of education on securing public and private grant funds and on using other public and private assets to implement the instructional program.
The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to January 1, 2004, on the implementation of the program in the pilot units.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
COMMUNITY COLLEGE FUNDING FLEXIBILITY
SECTION 8.1. A local community college may use all State funds allocated to it, except for Literacy Funds and Funds for New and Expanding Industries, for any authorized purpose that is consistent with the college's Institutional Effectiveness Plan. Each local community college shall include in its Institutional Effectiveness Plan a section on how funding flexibility allows the college to meet the demands of the local community and to maintain a presence in all previously funded categorical programs.
No more than two percent (2%) systemwide shall be transferred from faculty salaries without the approval of the State Board of Community Colleges. The State Board shall report on any such transfers above two percent (2%) systemwide to the Office of State Budget and Management and the Joint Legislative Commission on Governmental Operations at its next meeting.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
FLEXIBILITY TO IMPLEMENT BUDGET REDUCTIONS
SECTION 8.2. Notwithstanding G.S. 143‑23 or any other provision of law, the State Board of Community Colleges may use salary reserve funds and other funds, and may transfer funds within the Community College System Office continuation budget to the extent necessary to implement budget reductions for the 2003‑2004 fiscal year.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
STATE BOARD OF COMMUNITY COLLEGE MANAGEMENT FLEXIBILITY
SECTION 8.3. Within 30 days of the date this act becomes law, the State Board of Community Colleges shall notify each college of the amount the college must reduce from State General Fund appropriations. The State Board shall determine the amount of the reduction for each unit on the basis of FTE or another method that accounts for the unique needs of specific colleges.
Each college shall report to the State Board of Community Colleges on the discretionary budget reductions it has identified for the college within 60 days of the date this act becomes law. No later than December 31, 2003, the State Board of Community Colleges shall make a summary report to the Office of State Budget and Management and the Fiscal Research Division on all reductions made by the colleges to achieve this reduction.
For fiscal year 2003‑2004, the General Assembly urges local college administrators to make every effort to reduce spending whenever and wherever such budget reductions are appropriate and as long as the targeted reductions do not directly impact classroom services or those services that are identified in this act as a high‑need area for the State. If reductions to the allotment categories listed in this paragraph are necessary in order to meet the reduction target, the local college administration shall submit an explanation of the anticipated impact of the reductions to student services along with the budget reductions to the State Board of Community Colleges.
By February 15, 2004, for fiscal year 2004‑2005, the State Board of Community Colleges will determine the changes to the allotment categories to make such reductions permanent.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
REGISTRATION FEES FOR OCCUPATIONAL CONTINUING EDUCATION OR FOCUSED INDUSTRIAL TRAINING
SECTION 8.4. Of the funds appropriated to the North Carolina Community College System for the 2003‑2005 biennium, the State Board of Community Colleges may use up to one hundred thousand dollars ($100,000) each year to pay registration fees and material costs for Occupational Continuing Education or Focused Industrial Training safety courses provided to companies that (i) are eligible to participate in the Focused Industrial Training Program, (ii) have less than 150 employees, and (iii) are found by community college representatives and regional customized training directors to face challenges in paying these fees and costs. These funds shall not be expended without the prior approval of the North Carolina Community College System Office, Division of Economic and Workforce Development.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 8.5. The General Assembly encourages the North Carolina Community Colleges System to use funds appropriated to support summer term curriculum FTE to address issues associated with worker shortages in high‑needs industries such as (i) Business Technology, (ii) Health Sciences, (iii) Child Care Training, and (iv) Public Service Technologies including law enforcement, fire protection, and education.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 8.6.(a) Subject to cash availability, the North Carolina Community Colleges System may carry forward an amount not to exceed five million dollars ($5,000,000) of the operating funds held in reserve that were not reverted in fiscal year 2002‑2003 to be reallocated to the State Board of Community Colleges' Equipment Reserve Fund. These funds should be distributed to colleges consistent with G.S. 115D‑31.
SECTION 8.6.(b) This section becomes effective June 30, 2003.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 8.7. Notwithstanding any other provision of law, all fees collected by the Hosiery Technology Center of Catawba Valley Community College for the testing of hosiery products shall be retained by the Center and used for the operations of the Center. Purchases made by the Center using these funds are not subject to the provisions of Article 3 of Chapter 143 of the General Statutes.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SCHOLARSHIPS FOR PROSPECTIVE TEACHERS
SECTION 8.8. Of the funds appropriated in this act to the State Board of Community Colleges, the State Board may use up to one million dollars ($1,000,000) for a nonrecurring grant to the North Carolina Community College Foundation. These funds shall be used to match the Glaxo Smith Kline Foundation challenge grant establishing a two million dollar ($2,000,000) endowment for the creation of a new scholarship program for prospective teachers enrolled in baccalaureate completion programs at State community college campuses and for the development of teacher preparation courses.
This provision is contingent upon receipt of one million dollars ($1,000,000) for this purpose from the Glaxo Smith Kline Foundation and applies only to the 2003‑2004 fiscal year.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
MANAGEMENT INFORMATION SYSTEM FUNDS
SECTION 8.9.(a) Funds appropriated for the Community Colleges System Office Management Information System shall not revert at the end of the 2002‑2003 and 2003‑2004 fiscal years but shall remain available until expended.
SECTION 8.9.(b) This section becomes effective June 30, 2003.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
USE OF LITERACY FUNDS FOR LITERACY LABS
SECTION 8.10. Notwithstanding any other provision of law, a local community college may use up to five percent (5%) of the Literacy Funds allocated to it by the State Board of Community Colleges to procure computers for literacy labs.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
FACULTY AND PROFESSIONAL STAFF SALARIES
SECTION 8.11. Three million two hundred fifty thousand dollars ($3,250,000) in the Reserve for Compensation Increases in Section 2.1 of this act shall be used to increase faculty and professional staff salaries by an average of one‑half percent (0.5%). These increases are in addition to the one and eighty‑one hundredths percent (1.81%) provided by Section 30.11 of this act. These funds shall be used to increase faculty and professional staff salaries by an average of at least two and thirty‑one hundredths percent (2.31%). 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. The funds shall not be transferred by the State Board or used for any other budget purpose by the community colleges.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
EVALUATION OF THE COMPREHENSIVE ARTICULATION AGREEMENT
SECTION 8.12.(a) The General Assembly finds that (i) there is a general sentiment expressed by students that the Comprehensive Articulation Agreement adopted by the Board of Governors of The University of North Carolina and the State Board of Community Colleges should be improved and (ii) over the past five years, there have been many suggestions for improving the Comprehensive Articulation Agreement as well as recommendations for new directions in which the Comprehensive Articulation Agreement should be developed.
SECTION 8.12.(b) The Joint Legislative Education Oversight Committee shall contract with a credible independent source, individual, or organization to study the Comprehensive Articulation Agreement. The contractor shall not be (i) a current employee of The University of North Carolina, Office of the President, the North Carolina Community College System, or any of the North Carolina independent schools/colleges participating in the Comprehensive Articulation Agreement or (ii) a current or past member of the Transfer Advisory Committee.
SECTION 8.12.(c) The study by the contractor shall:
(1) Be consistent with the standards of Southern Association of Colleges and Schools, Commission on Colleges, on educational quality and institutional effectiveness;
(2) Be designed to provide an accurate and credible assessment of the effectiveness of the Comprehensive Articulation Agreement during its initial five years of existence relative to the intent of its authorizing legislation;
(3) Be based on qualitative as well as quantitative information and data;
(4) Take no more than four months from initiation to completion;
(5) Include input from college transfer students, counselors, faculty, and administration from both systems.
SECTION 8.12.(d) The contractor's report shall:
(1) Adequately reflect the study's methodology, sources of information, purpose and scope, analyses, evaluative assessments, recommendations, and conclusions;
(2) State any known deficiencies or limitations of the study;
(3) Be presented in both a printed form and an electronic version; and
(4) Provide recommendations for improving the Comprehensive Articulation Agreement.
SECTION 8.12.(e) The contractor shall submit a written progress report every four weeks to the Joint Legislative Education Oversight Committee, the vice‑president of academic affairs of The University of North Carolina, Office of the President, the vice‑president of academic affairs of the North Carolina Community College System Office, and the cochairs of the Transfer Advisory Committee. The contractor shall complete the report within four months. At the completion of the study, the contractor shall submit a draft of the report document to the Joint Legislative Education Oversight Committee, the vice‑president of academic affairs of The University of North Carolina, Office of the President, the vice‑president of academic affairs of the North Carolina Community College System Office, and the cochairs of the Transfer Advisory Committee for review.
SECTION 8.12.(f) Within 30 days of completing the study, the contractor shall submit a final report to the Joint Legislative Education Oversight Committee, the vice‑president of academic affairs of The University of North Carolina, Office of the President, the vice‑president of academic affairs of the North Carolina Community College System Office, and the cochairs of the Transfer Advisory Committee. The Joint Legislative Education Oversight Committee, vice‑president of academic affairs of The University of North Carolina, Office of the President, and the vice‑president of academic affairs of the North Carolina Community College System Office may, in their discretion, schedule a formal presentation of the report when it is submitted.
SECTION 8.12.(g) The University of North Carolina, Office of the President, and the North Carolina Community College System shall provide the contractor with access and use of information databases to the extent that such access and use is necessary for the study and does not violate legal and ethical codes or create disruptions of normal operations.
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.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 8.13. Of the funds appropriated in this act for the State Board of Community Colleges for the 2003‑2004 fiscal year, the sum of one hundred twenty‑five thousand dollars ($125,000) shall be used for a nonrecurring grant to the North Carolina Community College Foundation provided that a like amount is provided by the North Carolina Automotive Dealers Association to match these funds on a dollar‑for‑dollar basis. The North Carolina Community College Foundation shall use these funds to provide incentive programming at the colleges that offer Automotive Systems Technology. The incentive programming shall consist of one or more of the following:
(1) Increasing awareness of careers available in the franchised automobile and truck industry in North Carolina;
(2) Increasing awareness within North Carolina's middle school and high school guidance counselors and workforce development coordinators;
(3) Increasing public awareness of teaching opportunities in North Carolina's high schools and community colleges in the area of automotive technology;
(4) Increasing opportunities in continuing education for automotive technology high school and community college instructors;
(5) Providing a program coordinator to work with the franchised car and truck dealers and with community college and high school automotive professionals to ensure that the automotive curriculum is uniform and appropriate; and
(6) Increasing resources to assist high schools and community colleges in gaining and maintaining certification for their respective automotive technology programs.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 8.14.(a) Article 3 of Chapter 115D of the General Statutes is amended by adding a new section to read:
"§ 115D-42. North Carolina Community Colleges Instructional Trust Fund.
(a) There is established the North Carolina Community Colleges Instructional Trust Fund. The purpose of this Trust Fund is to supplement the funds raised by community college foundations to enhance the academic missions of community colleges.
(b) The State Board of Community Colleges is authorized to allocate funds from the Instructional Trust Fund to the community colleges and to adopt rules to implement the provisions of this section.
(c) State funds from the Trust Fund and matching funds raised by foundations shall be used by the board of trustees of a community college only to enhance the academic mission of the college. State funds shall be used only for scholarships or financial aid for needy students.
Expenditures of the matching funds raised by foundations shall directly relate to education and shall be used only for:
(1) Resource center materials;
(2) Professional development of instructional faculty and staff in cases in which (i) professional development will improve the quality of performance provided by the employee and (ii) the employee makes a commitment to remain at the college for a prescribed period of time;
(3) Professional development of instructional faculty and staff in cases in which professional development is necessary to enhance the employee's ability to meet newly mandated instructional or performance requirements; and
(4) Other purposes authorized by the State Board of Community Colleges that are consistent with the college's mission.
(d) Every two dollars ($2.00) raised by the community college foundations for the Trust Fund during the 2003-2004 fiscal year shall be matched with one dollar ($1.00) of State funds. The maximum matching contribution from the State shall not exceed twenty-five thousand dollars ($25,000) for each of the 58 community colleges. These funds shall be reserved for each community college and held in escrow in the Trust Fund. A community college foundation may apply for matching funds after it raises twenty-five thousand dollars ($25,000). The chairperson of each community college foundation shall certify to the North Carolina Community College System Office that (i) new funds have been raised by the community college foundation to match the amount of funds held in escrow in the Trust Fund, (ii) the amount raised by the community college foundation has not been used previously for matching purposes, (iii) the amount raised by the college shall be used only as provided in subsection (c) of this section, and (iv) matching State funds shall be used only for scholarships or financial aid for needy students.
(e) The State Board of Community Colleges may request an audit of the State funds expended under this section from any community college foundation."
SECTION 8.14.(b) There is appropriated from the Escheat Fund to the State Board of Community Colleges the sum of one million four hundred fifty thousand dollars ($1,450,000) for the 2003‑2004 fiscal year to provide matching State funds for the Community Colleges Instructional Trust Fund established in subsection (a) of this section.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
focused industrial training funds
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
SECTION 9.1. The Chancellor of each constituent institution shall report to the Board of Governors of The University of North Carolina on the reductions made to the General Fund budget codes in order to meet the reduction reserve amounts for that institution. The President of The University of North Carolina shall report to the Board of Governors of The University of North Carolina on the reductions made to the General Fund budget codes controlled by the Board in order to meet the reduction reserve amounts for those entities. The Board of Governors shall make a summary report to the Office of State Budget and Management and the Fiscal Research Division by December 31, 2003, on all reductions made by these entities and constituent institutions in order to reduce the budgets by the targeted amounts.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
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‑three million seven hundred fifty thousand dollars ($23,750,000) for each year of the 2003‑2005 fiscal biennium and to the State Board of Community Colleges the sum of ten million two hundred sixty‑two thousand eight hundred six dollars ($10,262,806) for each year of the 2003‑2005 fiscal biennium. 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.
SECTION 9.2.(b) The Director of the Budget shall include General 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) The State Education Assistance Authority (SEAA) shall perform all of the administrative functions necessary to implement the program of financial aid. The SEAA shall conduct periodic evaluations of expenditures of the scholarship programs to determine if allocations are utilized to ensure access to institutions of higher learning and to meet the goals of the respective programs. The SEAA may make recommendations for redistribution of funds to The University of North Carolina and the President of the Community College System regarding their respective scholarship programs, who then may authorize redistribution of unutilized funds for a particular fiscal year.
SECTION 9.2.(d) All obligations to students for uses of the funds set out in subsection (a) of this section that were made prior to the effective date of this section shall be fulfilled as to students who remain eligible under the provisions of the respective programs.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
UNC BOND PROJECT MODIFICATIONS
SECTION 9.3.(a) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational and research program requirements at Elizabeth City State University by substituting a project entitled "Campus Improvements" for "Doles Residence Hall – Comprehensive Renovation" as contained in Section 2(a) of S.L. 2000‑3, as a residence hall that has been provided for from housing receipts and campus infrastructure improvements will allow energy conservation and savings. Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under Elizabeth City State University by deleting "Doles Residence Hall – Comprehensive Renovation…$1,722,500" and by substituting "Campus Improvements…$1,722,500".
SECTION 9.3.(b) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational and research program requirements at North Carolina Central University, due to increasing enrollment growth, by substituting a project entitled "Pearson Cafeteria – Expansion" for "Pearson Cafeteria – Comprehensive Renovation" as contained in Section 2(a) of S.L. 2000‑3, by deleting a project entitled "Old Senior Dorm – Conversion to Academic Use" as contained in Section 2(a) of S.L. 2000‑3 and by transferring the funds of two million one hundred thirty thousand seven hundred dollars ($2,130,700) from the project entitled "Old Senior Dorm – Conversion to Academic Use", as contained in Section 2(a) of S.L. 2000‑3, and by transferring a portion of the funds from a project entitled "Farrison‑Newton Building – Comprehensive Renovation of Classroom Building", as contained in Section 2(a) of S.L. 2000‑3, to this substitute project. Section 2(a) of S.L. 2000‑3 is therefore amended as follows:
(1) In the portion entitled "Pearson Cafeteria – Comprehensive Renovation" under North Carolina Central University, by deleting "Comprehensive Renovation" and by substituting "Expansion" and by adding $7,730,700 for the project so that it reads "Pearson Cafeteria – Expansion…$8,994,300".
(2) In the portion under North Carolina Central University, by deleting "Old Senior Dorm – Conversion to Academic Use…$2,130,700".
(3) In the portion entitled "Farrison‑Newton Building – Comprehensive Renovation of Classroom Building" under North Carolina Central University, by decreasing by $5,600,000 the $7,048,700 for the project so that it reads "Farrison‑Newton Building – Comprehensive Renovation of Classroom Building…$1,448,700".
SECTION 9.3.(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 Asheville by substituting a project entitled "Carmichael Hall Classroom Building – Demolition and New Construction" for "Carmichael Hall Classroom Building – Comprehensive Renovation" as contained in Section 2(a) of S.L. 2000‑3, as it has been determined that it is more cost‑effective to replace this facility than to renovate it. Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under the University of North Carolina at Asheville by deleting "Carmichael Hall Classroom Building – Comprehensive Renovation" and by adding "Carmichael Hall Classroom Building – Demolition and New Construction".
SECTION 9.3.(d) 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 Pembroke, due to enrollment growth higher than projected, by adding a project entitled "General Purpose Classroom Building" to Section 2(a) of S.L. 2000‑3 and by transferring a portion of the funds from the project entitled "Residence/Dining Hall – Replacement of Jacobs & Wellons Halls", as contained in Section 2(a) of S.L. 2000‑3, to this substitute project. Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under the University of North Carolina at Pembroke by substituting "Residence/Dining Hall – Replacement of Jacobs & Wellons Halls…$325,300" and by adding "General Purpose Classroom Building…$7,375,000".
SECTION 9.3.(e) 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 Winston‑Salem State University by substituting a project entitled "Anderson Center – Comprehensive Renovation" for "Anderson Center – Comprehensive Renovation & Change of Use for Early Childhood/Gerontology Programs", as contained in Section 2(a) of S.L. 2000‑3, by adding a project entitled "Coltrane Hall – Renovation to House Gerontology", by transferring a portion of the funds from the project entitled "Anderson Center – Comprehensive Renovation & Change of Use for Early Childhood/Gerontology Programs", as contained in Section 2(a) of S.L. 2000‑3, to the new project entitled "Coltrane Hall – Renovation to House Gerontology", by adding a project entitled "New Facility for the Early Childhood Program", and by transferring a portion of the funds from the project entitled "Anderson Center – Comprehensive Renovation & Change of Use for Early Childhood/Gerontology Programs", as contained in Section 2(a) of S.L. 2000‑3, to the new project entitled "New Facility for the Early Childhood Program". Section 2(a) of S.L. 2000‑3 is therefore amended as follows:
(1) In the portion entitled "Anderson Center – Comprehensive Renovation & Change of Use for Early Childhood/Gerontology Programs" under Winston‑Salem State University, by deleting "& Change of Use for Early Childhood/Gerontology Programs" and by decreasing by $1.9 million the $6,917,900 for the project so that it reads "Anderson Center – Comprehensive Renovation…$5,017,900".
(2) In the portion under Winston‑Salem State University, by adding a new project "Coltrane Hall – Renovation to House Gerontology…$400,000".
(3) In the portion under Winston‑Salem State University, by adding a new project "New Facility for the Early Childhood Program…$1,500,000".
SECTION 9.3.(f) 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 Winston‑Salem State University by substituting a project entitled "New Student Health Center" for "Health Center Bldg. & Old Nursing Bldg. – Comprehensive Renovation for Student Health", as contained in Section 2(a) of S.L. 2000‑3, and by using the existing project budget for a new health facility, as it has been determined that the two existing buildings are in poor condition and have been recommended for future demolition. Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under Winston‑Salem State University by deleting "Health Center Bldg. and Old Nursing Bldg. – Comprehensive Renovation for Student Health" and by substituting "New Student Health Center".
SECTION 9.3.(g) Nothing in this section is intended to supersede any other requirement of law or policy for approval of the substituted capital improvement projects.
SECTION 9.3.(h) This section becomes effective January 1, 2004.
Requested by: Senators Hagan, Garrou, Dalton
School of Science Math/College Scholarships
SECTION 9.4.(a) Article 29 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116-238.1. Full tuition grant for graduates who attend a State university.
(a) There is granted to each State resident who graduates from the North Carolina School of Science and Mathematics and who enrolls as a full-time student in a constituent institution of The University of North Carolina a sum to be determined by the General Assembly as a tuition grant. The tuition grant shall be for four consecutive academic years and shall cover the tuition cost at the constituent institution in which the student is enrolled. The tuition grant shall be distributed to the student as provided by this section.
(b) The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section. The State Education Assistance Authority shall not approve any grant until it receives proper certification from the appropriate constituent institution that the student applying for the grant is an eligible student. Upon receipt of the certification, the State Education Assistance Authority shall remit at the times it prescribes the grant to the constituent institution on behalf, and to the credit, of the student.
(c) In the event a student on whose behalf a grant has been paid is not enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority.
(d) In the event there are not sufficient funds to provide each eligible student with a full grant:
(1) The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2) Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
(e) Any remaining funds shall revert to the General Fund."
SECTION 9.4.(b) This section applies to students graduating in the 2004‑2005 academic year and each subsequent academic year.
Requested by: Senators Garrou, Dalton, Hagan
Film Industry Feasibility Study
SECTION 9.5. The Board of Governors of The University of North Carolina shall conduct a feasibility study to assess the strategic opportunities in the arts and entertainment industry in Forsyth County and its environs in the creation of programs, facilities, job opportunities, and tourism demand related to the film industry. The study shall include, but not be limited to: (i) the development of a program in digital media, and (ii) the development of a tourist destination film industry studio backlot.
The Board of Governors shall consult with the faculty and staff of the North Carolina School of the Arts and other experts in the arts and entertainment fields in conducting the feasibility study. The Board of Governors shall report the results of the study and any recommendations the Board makes related to the study to the 2003 General Assembly by April 1, 2004.
Requested by: Senators Lucas, Metcalf, Garrou, Dalton, Hagan
DISTINGUISHED PROFESSORS ENDOWMENT TRUST FUND
SECTION 9.6.(a) G.S. 116‑41.15 reads as rewritten:
"§ 116‑41.15. Distinguished Professors Endowment Trust Fund; allocation; administration.
(a) As used in this Part, "focused growth institution" means Elizabeth City State University, Fayetteville State University, North Carolina Agricultural and Technical University, North Carolina Central University, the University of North Carolina at Pembroke, Western Carolina University, and Winston-Salem State University. As used in this Part, "special needs institution" means the North Carolina School of the Arts and the University of North Carolina at Asheville.
(b) For
constituent institutions other than focused growth institutions and special
needs institutions, Thethe amount appropriated to the trust
shall be allocated by the Board as follows:
(1) On the basis of one three hundred thirty‑four thousand dollar ($334,000) challenge grant for each six hundred sixty‑six thousand dollars ($666,000) raised from private sources; or
(2) On the basis of one one hundred sixty‑seven thousand dollar ($167,000) challenge grant for each three hundred thirty‑three thousand dollars ($333,000) raised from private sources.
If an institution chooses to
pursue the use of the allocated challenge grant funds described in either
subdivision (1) or subdivision (2) of this section,subsection,
the funds shall be matched on a two‑to‑one basis.
(c) For focused growth institutions and special needs institutions, subsection (b) of this section shall be applied such that the amount appropriated to the trust shall be allocated by the Board on a one-to-one basis instead of a one-to-two basis.
(d) Matching funds shall come from contributions made after July 1, 1985, and pledged for the purposes specified by G.S. 116‑41.14. Each participating constituent institution's board of trustees shall establish its own Distinguished Professors Endowment Trust Fund, and shall maintain it pursuant to the provision of G.S. 116‑36 to function as a depository for private contributions and for the State matching funds for the challenge grants. The State matching funds shall be transferred to the constituent institution's Endowment Fund upon notification that the institution has received and deposited the appropriate amount required by this section in its own Distinguished Professors Endowment Trust Fund. Only the net income from that account shall be expended in support of the distinguished professorship thereby created."
SECTION 9.6.(b) G.S. 116‑41.16 reads as rewritten:
"§ 116‑41.16. Distinguished Professors Endowment Trust Fund; contribution commitments.
(a) For
constituent institutions other than focused growth institutions and special
needs institutions, Contributions contributions may also be
eligible for matching if there is:
(1) A commitment to make a donation of at least six hundred sixty‑six thousand dollars ($666,000), as prescribed by G.S. 143‑31.4, and an initial payment of one hundred eleven thousand dollars ($111,000) to receive a grant described in G.S. 116‑41.15(b)(1); or
(2) A commitment to make a donation of at least three hundred thirty‑three thousand dollars ($333,000), as prescribed by G.S. 143‑31.4, and an initial payment of fifty‑five thousand five hundred dollars ($55,500) to receive a grant described in G.S. 116‑41.15(b)(2);
and if the initial payment is accompanied by a written pledge to provide the balance within five years after the date of the initial payment. Each payment on the balance shall be no less than the amount of the initial payment and shall be made on or before the anniversary date of the initial payment. Pledged contributions may not be matched prior to the actual collection of the total funds. Once the income from the institution's Distinguished Professors Endowment Trust Fund can be effectively used pursuant to G.S. 116‑41.17, the institution shall proceed to implement plans for establishing an endowed chair.
(b) For focused growth institutions and special needs institutions, subsection (a) of this section is modified such that contributions may be eligible for matching based on a schedule to be adopted by the Board of Governors such that at least one-sixth of the commitment will be donated each year."
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
PETROLEUM OVERCHARGE FUNDS ALLOCATION
SECTION 10.1.(a) There is appropriated from funds and interest thereon received from the case of United States v. Exxon that remain in the Special Reserve for Oil Overcharge Funds to the Department of Health and Human Services the sum of one million dollars ($1,000,000) for the 2003‑2004 fiscal year to be allocated for the Weatherization Assistance Program.
SECTION 10.1.(b) Any funds remaining in the Special Reserve for Oil Overcharge Funds after the allocation made pursuant to subsection (a) of this section may be expended only as authorized by the General Assembly. All interest or income accruing from all deposits or investments of cash balances shall be credited to the Special Reserve for Oil Overcharge Funds.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SECTION 10.2.(a) To promote coordinated policy development and strategic planning for the State's health and human services systems, the Secretary of Health and Human Services shall establish an Office of Policy and Planning from existing resources across the Department. The Director of the Office of Policy and Planning shall report directly to the Secretary and shall have the following responsibilities:
(1) Coordinate the development of departmental policies, plans, and rules, in consultation with the Divisions of the Department.
(2) Development of a departmental process for the development and implementation of new policies, plans, and rules.
(3) Development of a departmental process for the review of existing policies, plans, and rules to ensure that departmental policies, plans, and rules are relevant.
(4) Coordination and review of all departmental policies before dissemination to ensure that all policies are well‑coordinated within and across all programs.
(5) Implementation of ongoing strategic planning that integrates budget, personnel, and resources with the mission and operational goals of the Department.
(6) Review, disseminate, monitor, and evaluate best practice models.
SECTION 10.2.(b) Under the direction of the Secretary of Health and Human Services, the Director of the Office of Policy and Planning shall have the authority to direct Divisions, offices, and programs within the Department to conduct periodic reviews of policies, plans, and rules and shall advise the Secretary when it is determined to be appropriate or necessary to modify, amend, and repeal departmental policies, plans, and rules. All policy and management positions within the Office of Policy and Planning are exempt positions as that term is defined in G.S. 126‑5.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
WEATHERIZATION ASSISTANCE PROGRAM
SECTION 10.3. Article 2 of Chapter 108A of the General Statutes is amended by adding the following new Part to read:
"Part 9. Weatherization Assistance Program and Heating/Air Repair and Replacement Program.
"§ 108A-70.30. Weatherization Assistance Program and Heating/Air Repair and Replacement Program.
The Department may administer the Weatherization Assistance Program for Low‑Income Families and the Heating/Air Repair and Replacement Program functions. Nothing in this Part shall be construed as obligating the General Assembly to appropriate funds for the Program or as entitling any person to services under the Program."
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
NONMEDICAID REIMBURSEMENT CHANGES
SECTION 10.4. Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Health and Human Services may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in nonmedicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one, the Department of Health and Human Services may negotiate with providers of medical services under the various Department of Health and Human Services programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes: contracts or agreements for medical services and purchases of medical equipment and other medical supplies. These negotiated rates are allowable only to meet the medical needs of its nonmedicaid eligible patients, residents, and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs shall be as follows:
Medical Eye Rehabilitation Except
Family Size Care Adults DSB Over 55 Grant Other
1 $4,860 $8,364 $4,200
2 5,940 10,944 5,300
3 6,204 13,500 6,400
4 7,284 16,092 7,500
5 7,821 18,648 7,900
6 8,220 21,228 8,300
7 8,772 21,708 8,800
8 9,312 22,220 9,300
The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. The eligibility level for adults 55 years of age or older who qualify for services through the Division of Services for the Blind, Independent Living Rehabilitation Program, shall be two hundred percent (200%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. The eligibility level for adults in the Atypical Antipsychotic Medication Program in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall be one hundred fifty percent (150%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. Additionally, those adults enrolled in the Atypical Antipsychotic Medication Program who become gainfully employed may continue to be eligible to receive State support, in decreasing amounts for the purchase of atypical antipsychotic medication and related services up to three hundred percent (300%) of the poverty level.
State financial participation in the Atypical Antipsychotic Medication Program for those enrollees who become gainfully employed is as follows:
Income State Participation Client Participation
(% of poverty)
0‑150% 100% 0%
151‑200% 75% 25%
201‑250% 50% 50%
251‑300% 25% 75%
300% and over 0% 100%
The Department of Health and Human Services shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SENIOR CARES PROGRAM ADMINISTRATION
SECTION 10.5. The Department of Health and Human Services may administer the "Senior Cares" prescription drug access program approved by the Health and Wellness Trust Fund Commission and funded from the Health and Wellness Trust Fund.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SECTION 10.6. With the approval of the Office of State Budget and Management, the Department of Health and Human Services may use funds appropriated in this act for across‑the‑board salary increases and performance pay to offset similar increases in the costs of contracting with private and independent universities for the provision of physician services to clients in facilities operated by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services. This offsetting shall be done in the same manner as is currently done with the constituent institutions of The University of North Carolina.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SECTION 10.7.(a) The Secretary of the Department of Health and Human Services, the Secretary of the Department of Environment and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed one million dollars ($1,000,000) per incident on behalf of employees of the Departments licensed to practice medicine or dentistry, all licensed physicians who are faculty members of The University of North Carolina who work on contract for the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services for incidents that occur in Division programs, and on behalf of physicians in all residency training programs from The University of North Carolina who are in training at institutions operated by the Department of Health and Human Services. This coverage may include commercial insurance or self‑insurance and shall cover these individuals for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment or training.
SECTION 10.7.(b) The coverage provided under this section shall not cover any individual for any act or omission that the individual knows or reasonably should know constitutes a violation of the applicable criminal laws of any state or the United States, or that arises out of any sexual, fraudulent, criminal, or malicious act, or out of any act amounting to willful or wanton negligence.
SECTION 10.7.(c) The coverage provided pursuant to this section shall not require any additional appropriations and shall not apply to any individual providing contractual service to the Department of Health and Human Services, the Department of Environment and Natural Resources, or the Department of Correction, with the exception that coverage may include physicians in all residency training programs from The University of North Carolina who are in training at institutions operated by the Department of Health and Human Services and licensed physicians who are faculty members of The University of North Carolina who work for the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
BUTNER COMMUNITY LAND RESERVATION
SECTION 10.8. The Department of Health and Human Services shall reserve and dedicate the following described land for the construction of a community building and related facilities to serve the Butner Reservation:
"Approximately 2 acres, on the east side it borders Central Avenue with a line running along the Wallace Bradshur property on the north back to the tree line next to the ADATC. From there it follows the tree line south and west to and including the softball field. From the softball field it turns east to the State Employees Credit Union and follows the Credit Union property on the south side back to Central Avenue."
This land shall be reserved and dedicated for the project which shall be funded with contributions from Granville County, contributions from the residents of the Butner Reservation, the use of cablevision franchise rebate funds received by the Department of Health and Human Services on behalf of the Butner Reservation, and other public and private sources.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
DHHS CENTRALIZE INFORMATION TECHNOLOGY OPERATIONS
SECTION 10.8A.(a) The Department of Health and Human Services shall conduct a thorough, department‑wide examination and analysis of its Information Technology (IT) infrastructure, including IT expenditures and management functions. The purpose of the examination is to enable the General Assembly and the Office of State Budget to readily determine the amount of State funds being expended annually on each and all IT functions. Upon completion of its examination and analysis, the Department shall develop a plan for the establishment of a Central IT Operations Unit encompassing all IT operations and functions that are common to all divisions, offices, and programs of the Department. The Central IT Operations Unit shall be organized such that all IT expenditures and personnel are readily identifiable. The Department may exclude from the Central IT Operations Unit those IT functions that are unique to one or more individual divisions, offices, or programs, provided that such separate IT functions are readily identifiable in terms of expenditures and personnel, and the separation allows for combining the expenditures and personnel data with expenditures and personnel data of the Central IT Operations Unit. The Department shall identify all excluded IT functions and provide reasons why it is more beneficial to the State to exclude those functions from the Central IT Operations Unit.
SECTION 10.8A.(b) The Office of State Budget and Management and the Department of Health and Human Services shall identify the amount of State appropriations necessary to fully fund from the General Fund the current budget for the Division of Information Resources. Having determined the amount of General Fund dollars needed, the Office of State Budget and Management shall develop and recommend a plan for providing the necessary funds.
SECTION 10.8A.(c) The Department of Health and Human Services shall report on the development of the Central IT Operations Unit 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 by January 1, 2004. The Office of State Budget and Management shall report on the identification of funds required under subsection (b) of this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division by January 1, 2004.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
education and awareness of infant homicide prevention act
SECTION 10.8B.(a) The Department of Health and Human Services, Division of Public Health and the Division of Social Services, shall incorporate education and awareness of the Infant Homicide Prevention Act pursuant to S.L. 2001‑291, into other State‑funded programs at the local level.
SECTION 10.8B.(b) The Department shall report on its activities 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 April 1, 2004.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
MEDICAL CARE COMMISSION TEMPORARY RULE‑making AUTHORITY EXTENDED
SECTION 10.8C. Section 6.(d) of S.L. 2002‑160 reads as rewritten:
"SECTION 6.(d)
Notwithstanding 26 NCAC 2C .0102(11), the Commission for Health Services and
the Medical Care Commission may adopt temporary rules as provided in this
section until 1 July 2003.2004."
Requested by: Senators Purcell, Reeves , Garrou, Dalton, Hagan
IMPLEMENT A PILOT PROJECT FOR LONG‑TERM CARE COMMUNITY SERVICE COORDINATION
SECTION 10.8D.(a) In accordance with the recommendations in the final report from the Institute of Medicine Task Force on Long‑Term Care and the study report recommendations resulting from S.L. 2001‑491, Part XXII, the Department of Health and Human Services shall implement a communications and coordination initiative to support local coordination of long‑term care and shall pilot the establishment of local lead agencies to facilitate the long‑term care coordination process at the county or regional level. For those counties that voluntarily participate, the local long‑term care coordination initiative shall aid in the development of core services, coordinate local services, and streamline access to services. The initiative shall eliminate fragmentation and barriers to information and services; provide a seamless connection among State agencies and local entities, regardless of funding sources; and allow consumers to efficiently and effectively navigate among long‑term care services.
SECTION 10.8D.(b) The Department shall submit an interim report on the pilot project for local long‑term care coordination to the North Carolina Study Commission on Aging by October 1, 2004, and a final report by October 1, 2005.
SUBPART 2. DIVISION OF MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
MENTAL HEALTH, DEVELOPMENTAL DISABILITY, AND SUBSTANCE ABUSE SERVICES TRUST FUND FOR SYSTEM REFORM BRIDGE AND CAPITAL FUNDING NEEDS AND OLMSTEAD
SECTION 10.9. Moneys in the Trust Fund established pursuant to G.S. 143‑15.3D shall be used to establish or expand community‑based services only if sufficient recurring funds can be identified within the Department of Health and Human Services from funds currently budgeted for mental health, developmental disabilities, and substance abuse services, area mental health programs or county programs, or local government.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
EXTEND MENTAL HEALTH CONSUMER ADVOCACY PROGRAM CONTINGENT UPON FUNDS APPROPRIATED BY THE 2005 GENERAL ASSEMBLY
SECTION 10.10. Section 4 of S.L. 2001‑437, as amended by Section 10.30 of S.L. 2002‑126, reads as rewritten:
"SECTION 4. Sections
1.1 through 1.21(b) of this act become effective July 1, 2002. Section 2 of
this act becomes effective only if funds are appropriated by the 2003 2005
General Assembly for that purpose. Section 2 of this act becomes effective July
1 of the fiscal year for which funds are appropriated by the 2003 2005
General Assembly for that purpose. The remainder of this act is effective
when it becomes law."
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SUBSTANCE ABUSE PREVENTION SERVICES REPORTING
SECTION 10.11. The Department of Health and Human Services shall report on its activities under Section 10.24 of S.L. 2002‑126 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 December 1, 2003.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
TRANSITION PLANNING FOR STATE PSYCHIATRIC HOSPITALS
SECTION 10.12.(a) In keeping with the United States Supreme Court decision in Olmstead vs. L.C. & E.W.and State policy to provide appropriate services to clients in the least restrictive and most appropriate environment, the Department of Health and Human Services shall develop and implement a plan for the construction of a replacement facility for Dorothea Dix Hospital and for the transition of patients to the community or to other long‑term care facilities, as appropriate. The goal is to develop mechanisms and identify resources needed to enable patients and their families to receive the necessary services and supports based on the following guiding principles:
(1) Individuals shall be provided acute psychiatric care in non‑State facilities when appropriate.
(2) Individuals shall be provided acute psychiatric care in State facilities only when non‑State facilities are unavailable.
(3) Individuals shall receive evidenced‑based psychiatric services and care that are cost‑efficient.
(4) The State shall minimize cost shifting to other State and local facilities or institutions.
SECTION 10.12.(b) The Department of Health and Human Services shall conduct an analysis of the individual patient service needs and shall develop and implement an individual transition plan, as appropriate, for patients in each hospital. The State shall ensure that each individual transition plan, as appropriate, shall take into consideration the availability of appropriate alternative placements based on the needs of the patient and within resources available for the mental health, developmental disabilities, and substance abuse services system. In developing each plan, the Department shall consult with the patient and the patient's family or other legal representative.
SECTION 10.12.(c) In accordance with the plan established in subsections (a) and (b) of this section, any nonrecurring savings in State appropriations that result from reductions in beds or services shall be placed in the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs. These funds shall be used to facilitate the transition of clients into appropriate community‑based services and supports in accordance with G.S. 143‑15.3D. Recurring savings realized through implementation of this section shall be retained by the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (i) for implementation of subsections (a) and (b) of this section, and (ii) to support the recurring costs of additional community‑based placements from Division facilities in accordance with Olmstead vs. L.C. & E.W.
SECTION 10.12.(d) The Department of Health and Human Services shall submit reports on the status of implementation of this section to the Joint Legislative Commission on Governmental Operations, the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. These reports shall be submitted on December 1, 2003, and May 1, 2004.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
COMPREHENSIVE TREATMENT SERVICES PROGRAM
SECTION 10.13. The Department of Health and Human Services shall report on its continuing implementation of the Comprehensive Treatment Services Program established pursuant to Section 21.60 of S.L. 2001‑424. The Department shall submit an interim report on December 1, 2003, and a final report not later than April 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.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
MENTAL RETARDATION CENTER DOWNSIZING
SECTION 10.14.(a) In accordance with the Department of Health and Human Services' plan for downsizing the State's regional mental retardation facilities by four percent (4%) each year, the Department shall implement cost‑containment and reduction strategies to ensure the corresponding financial and staff downsizing of each facility. The Department shall manage the client population of the mental retardation centers in order to ensure that placements for ICF/MR level of care shall be made in non‑State facilities. Admissions to State ICF/MR facilities are permitted only as a last resort and only upon approval of the Department. The corresponding budgets for each of the State mental retardation centers shall be reduced, and positions shall be eliminated as the census of each facility decreases. At no time shall mental retardation center positions be transferred to other units within a facility or assigned nondirect care activities such as outreach.
SECTION 10.14.(b) Any savings in State appropriations in each year of the 2003‑2005 fiscal biennium that result from reductions in beds or services shall be applied as follows:
(1) Nonrecurring savings shall be placed in the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs and shall be used to facilitate the transition of clients into appropriate community‑based services and support in accordance with G.S. 143‑15.3D, and
(2) Recurring savings realized through implementation of this section shall be retained by the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to support the recurring costs of additional community‑based placements from Division facilities in accordance with Olmstead vs. L.C. & E.W.In determining the savings in this section, savings shall include all savings realized from the downsizing of the State mental retardation centers including both the savings in direct State appropriations in the budgets of the State mental retardation centers as well as the savings in the State matching portion of reduced Medicaid payments associated with downsizing.
SECTION 10.14.(c) The Department of Health and Human Services shall report on its progress in complying with this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. The progress report shall be submitted not later than January 15, 2004, and a final report submitted not later than May 1, 2004.
SECTION 10.14.(d) Downsizing of mental retardation centers which occurs in the 2003‑2004 fiscal year shall be maintained for the 2004‑2005 fiscal year. Effective July 1, 2003, downsizing shall be accomplished in accordance with this section and the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services. All savings resulting from downsizing occurring on and after July 1, 2003, shall be utilized as set forth in subsection (b) of this section.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
MENTAL RETARDATION CENTER TRANSITION PLAN
SECTION 10.15.(a) The Department of Health and Human Services shall develop and implement a plan for the reorganization of outreach services performed by the State mental retardation centers. The plan shall provide for the elimination of self‑referrals by the mental retardation centers and shall include the following:
(1) The area and county mental health programs shall have exclusive authority for referring to the mental retardation centers persons in the community who are in need of specialized services.
(2) The mental retardation centers shall coordinate the transition of residents from the mental retardation centers to area and county mental health programs, and shall provide technical assistance to community service providers and families who care for transitioned residents, and to others in the community, as appropriate, for the purpose of furthering community services and placement.
(3) The method for allocating savings in State appropriations from the mental retardation centers across the area and county mental health programs.
SECTION 10.15.(b) In accordance with the plan established in subsection (a) of this section, any recurring and nonrecurring savings in State appropriations that result from the transfer of referral activities in the mental retardation centers to area and county mental health programs shall be transferred from the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to area and county mental health programs for referral activities.
SECTION 10.15.(c) The Department of Health and Human Services shall report on the implementation of this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. This report shall be submitted on February 1, 2004.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SERVICES TO MULTIPLY‑DIAGNOSED ADULTS
SECTION 10.16.(a) In order to ensure that multiply‑diagnosed adults are appropriately served by the mental health, developmental disabilities, and substance abuse services system, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall do the following with respect to services provided to these adults:
(1) Implement the following guiding principles for the provision of services:
a. Service delivery system must be outcome oriented and evaluation based.
b. Services should be delivered as close as possible to the consumer's home.
c. Services selected should be those that are most efficient in terms of cost and effectiveness.
d. Services should not be provided solely for the convenience of the provider or the client.
e. Families and consumers should be involved in decision making throughout treatment planning and delivery; and
(2) Provide those treatment services that are medically necessary.
(3) Implement utilization review of services provided.
SECTION 10.16.(b) The Department of Health and Human Services shall implement all of the following cost‑reduction strategies:
(1) Preauthorization for all services except emergency services.
(2) Criteria for determining medical necessity.
(3) Clinically appropriate services.
(4) Not later than May 1, 2004, conduct a State review of (i) individualized service plans for former Thomas S. class members and for adults whose service plan exceeds one hundred thousand dollars ($100,000) to ensure that service plans focus on delivery of appropriate services rather than optimal treatment and habilitation plans, and (ii) staffing patterns of residential services.
SECTION 10.16.(c) No State funds shall be used for the purchase of single‑family or other residential dwellings to house multiply‑diagnosed adults.
SECTION 10.16.(d) The Department shall submit a progress report on implementation of this section not later than February 1, 2004, and a final report not later than May 1, 2004, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
AREA MENTAL HEALTH ADMINISTRATIVE COSTS
SECTION 10.17.(a) Area mental health, developmental disabilities, and substance abuse authorities or counties administering mental health, developmental disabilities, and substance abuse services shall develop and implement plans to reduce local administrative costs. The plans shall be developed in accordance with guidelines adopted by the Secretary, in consultation with the Local Government Commission and the North Carolina Association of County Commissioners, and in accordance with the following:
(1) Administrative costs for area mental health, developmental disabilities, and substance abuse services programs shall not exceed thirteen percent (13%).
(2) Administrative costs for counties administering mental health, developmental disabilities, and substance abuse services through a county program shall not exceed thirteen percent (13%).
SECTION 10.17.(b) The Department of Health and Human Services shall report its progress in complying with this section not later than January 1, 2004, and April 15, 2004. The reports 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 and shall include:
(1) A description of the process used and the participants involved in complying with subsection (a) of this section.
(2) The guidelines developed under subsection (a) of this section.
(3) A description of local compliance initiatives and efforts including program or function consolidation.
(4) A list of area programs at or below the targeted thirteen percent (13%) for the 2003‑2004 fiscal year.
(5) Projected savings in administrative costs as a result of implementation of the targeted limits required under this section.
SECTION 10.17.(c) The Department may implement alternative approaches to establish reasonable administrative cost limitations for Local Management Entities (LMEs), including both county programs and area authority models, and service providers in accordance with system reform and changes in system funding structures.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
PRIVATE AGENCY UNIFORM COST FINDING REQUIREMENT
SECTION 10.18.(a) To ensure uniformity in rates charged to area programs and funded with State‑allocated resources, the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services of the Department of Health and Human Services may require a private agency that provides services under contract with an area program or county program, except for hospital services that have an established Medicaid rate, to complete an agency‑wide uniform cost finding in accordance with G.S.122C‑147.2. The resulting cost shall be the maximum included for the private agency in the contracting area program's unit cost finding.
SECTION 10.18.(b) If a private agency fails to timely and accurately complete the required agency‑wide uniform cost finding in a manner acceptable to the Department's controller's office, the Department may suspend all Department funding and payment to the private agency until such time as an acceptable cost finding has been completed by the private agency and approved by the Department's controller's office.
SUBPART 3. DIVISION OF MEDICAL ASSISTANCE
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SECTION 10.19.(a) Funds appropriated in this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy. Funds appropriated for these services shall be expended in accordance with the following schedule of services and payment bases. All services and payments are subject to the language at the end of this subsection.
Services and payment bases:
(1) Hospital‑Inpatient. – Payment for hospital inpatient services will be prescribed in the State Plan as established by the Department of Health and Human Services.
(2) Hospital‑Outpatient. – Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Health and Human Services.
(3) Nursing Facilities. – Payment for nursing facility services will be prescribed in the State Plan as established by the Department of Health and Human Services. Nursing facilities providing services to Medicaid recipients who also qualify for Medicare must be enrolled in the Medicare program as a condition of participation in the Medicaid Program. State facilities are not subject to the requirement to enroll in the Medicare program. Residents of nursing facilities who are eligible for Medicare coverage of nursing facility services must be placed in a Medicare certified bed. Medicaid shall cover facility services only after the appropriate services have been billed to Medicare. The Division of Medical Assistance shall allow nursing facility providers sufficient time from the effective date of this act to certify additional Medicare beds if necessary. In determining the date that the requirements of this subdivision become effective, the Division of Medical Assistance shall consider the regulations governing certification of Medicare beds and the length of time required for this process to be completed.
(4) Intermediate Care Facilities for the Mentally Retarded. – As prescribed in the State Plan as established by the Department of Health and Human Services.
(5) Drugs. – Drug costs as allowed by federal regulations plus a professional services fee per month excluding refills for the same drug or generic equivalent during the same month. Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills. Payments for drugs are subject to the provisions of subsection (h) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with the State Plan adopted by the Department of Health and Human Services consistent with federal reimbursement regulations. Payment of the professional services fee shall be made in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. The professional services fee shall be five dollars and sixty cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per prescription for brand name drugs. Adjustments to the professional services fee shall be established by the General Assembly.
(6) Physicians, Chiropractors, Podiatrists, Optometrists, Dentists, Certified Nurse Midwife Services, Nurse Practitioners. – Fee schedules as developed by the Department of Health and Human Services. Payments for dental services are subject to the provisions of subsection (g) of this section.
(7) Community Alternative Program, EPSDT Screens. – Payment to be made in accordance with 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 cost plus a dispensing fee.
(12) Rural Health Clinic Services. – Provider‑based, reasonable cost; nonprovider‑based, single‑cost reimbursement rate per clinic visit.
(13) Family Planning. – Negotiated rate for local health departments. For other providers, see specific services, for instance, hospitals, physicians.
(14) Independent Laboratory and X‑Ray Services. – Uniform fee schedules as developed by the Department of Health and Human Services.
(15) Optical Supplies. – One hundred percent (100%) of reasonable wholesale cost of materials.
(16) Ambulatory Surgical Centers. – Payment as prescribed in the reimbursement plan established by the Department of Health and Human Services.
(17) Medicare Crossover Claims. – An amount up to the actual coinsurance or deductible or both, in accordance with the State Plan, as approved by the Department of Health and Human Services.
(18) Physical Therapy and Speech Therapy. – Services limited to EPSDT‑eligible children. Payments are to be made only to qualified providers at rates negotiated by the Department of Health and Human Services. Physical therapy (including occupational therapy) and speech therapy services are subject to prior approval and utilization review.
(19) Personal Care Services. – Payment in accordance with the State Plan approved by the Department of Health and Human Services.
(20) Case Management Services. – Reimbursement in accordance with the availability of funds to be transferred within the Department of Health and Human Services.
(21) Hospice. – Services may be provided in accordance with the State Plan developed by the Department of Health and Human Services.
(22) Other Mental Health Services. – Unless otherwise covered by this section, coverage is limited to:
a. Services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) when provided in agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services, and reimbursement is made in accordance with a State Plan developed by the Department of Health and Human Services not to exceed the upper limits established in federal regulations, and
b. For children eligible for EPSDT services:
1. Licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, and nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, when Medicaid‑eligible children are referred by the Carolina ACCESS primary care physician or the area mental health program, and
2. Institutional providers of residential services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) for children and Psychiatric Residential Treatment Facility services that meet federal and State requirements as defined by the Department.
Notwithstanding G.S. 150B‑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. – Reimbursement in accordance with the State Plan approved by the Department of Health and Human Services.
(24) Health Insurance Premiums. – Payments to be made in accordance with the State Plan adopted by the Department of Health and Human Services consistent with federal regulations.
(25) Medical Care/Other Remedial Care. – Services not covered elsewhere in this section include related services in schools; health professional services provided outside the clinic setting to meet maternal and infant health goals; and services to meet federal EPSDT mandates. Services addressed by this paragraph are limited to those prescribed in the State Plan as established by the Department of Health and Human Services.
(26) Pregnancy‑Related Services. – Covered services for pregnant women shall include nutritional counseling, psychosocial counseling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses.
Services and payment bases may be changed with the approval of the Director of the Budget.
Payment is limited to Medicaid‑enrolled providers that 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.
SECTION 10.19.(b) Allocation of Nonfederal Cost of Medicaid. – The State shall pay eighty‑five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section.
SECTION 10.19.(c) Copayment for Medicaid Services. – The Department of Health and Human Services may establish copayment up to the maximum permitted by federal law and regulation.
SECTION 10.19.(d) Medicaid and Work First Family Assistance, Income Eligibility Standards. – The maximum net family annual income eligibility standards for Medicaid and Work First Family Assistance and the Standard of Need for Work First Family Assistance shall be as follows:
Categorically Needy Medically Needy
WFFA*
Family Standard Families and
Size of Need Children Income
Level AA, AB, AD*
1 $4,344 $2,172 $2,900
2 5,664 2,832 3,800
3 6,528 3,264 4,400
4 7,128 3,564 4,800
5 7,776 3,888 5,200
6 8,376 4,188 5,600
7 8,952 4,476 6,000
8 9,256 4,680 6,300
*Work First Family Assistance (WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).
The payment level for Work First Family Assistance shall be fifty percent (50%) of the standard of need.
These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
SECTION 10.19.(e) The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to all elderly, blind, and disabled people who have incomes equal to or less than one hundred percent (100%) of the federal poverty guidelines, as revised each April 1.
SECTION 10.19.(f) ICF and ICF/MR Work Incentive Allowances. – The Department of Health and Human Services may provide an incentive allowance to Medicaid‑eligible recipients of ICF and ICF/MR facilities who are regularly engaged in work activities as part of their developmental plan and for whom retention of additional income contributes to their achievement of independence. The State funds required to match the federal funds that are required by these allowances shall be provided from savings within the Medicaid budget or from other unbudgeted funds available to the Department. The incentive allowances may be as follows:
Monthly Net Wages Monthly Incentive Allowance
$1.00 to $100.99 Up to $50.00
$101.00 to $200.99 $80.00
$201.00 to $300.99 $130.00
$301.00 and greater $212.00.
SECTION 10.19.(g) Dental Coverage Limits. – Dental services shall be provided on a restricted basis in accordance with rules adopted by the Department to implement this subsection.
SECTION 10.19.(h) Dispensing of Generic Drugs. – Notwithstanding G.S. 90‑85.27 through G.S. 90‑85.31, or any other law to the contrary, under the Medical Assistance Program (Title XIX of the Social Security Act), and except as otherwise provided in this subsection for atypical antipsychotic drugs and drugs listed in the narrow therapeutic index, a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber has determined, at the time the drug is prescribed, that the brand name drug is medically necessary and has written on the prescription order the phrase "medically necessary". An initial prescription order for an atypical antipsychotic drug or a drug listed in the narrow therapeutic drug index that does not contain the phrase "medically necessary" shall be considered an order for the drug by its established or generic name, except that a pharmacy shall not substitute a generic or established name prescription drug for subsequent brand or trade name prescription orders of the same prescription drug without explicit oral or written approval of the prescriber given at the time the order is filled. Generic drugs shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand name drugs. As used in this subsection, "brand name" means the proprietary name the manufacturer places upon a drug product or on its container, label, or wrapping at the time of packaging; and "established name" has the same meaning as in section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act as amended, 21 U.S.C. § 352(e)(3).
SECTION 10.19.(i) The Department of Health and Human Services shall not impose prior authorization requirements or other restrictions under the State Medical Assistance Program on medications prescribed for Medicaid recipients for the treatment of: (i) mental illness, including, but not limited to, medications for schizophrenia, bipolar disorder, and major depressive disorder, or (ii) HIV/AIDS.
SECTION 10.19.(j) Exceptions to Service Limitations, Eligibility Requirements, and Payments. – Service limitations, eligibility requirements, and payments bases in this section may be waived by the Department of Health and Human Services, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans, contracting for services, managed care plans, or community‑based services programs in accordance with plans approved by the United States Department of Health and Human Services, or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient. The Department of Health and Human Services may proceed with planning and development work on the Program of All‑Inclusive Care for the Elderly.
SECTION 10.19.(k) Volume Purchase Plans and Single Source Procurement. – The Department of Health and Human Services, Division of Medical Assistance, may, subject to the approval of a change in the State Medicaid Plan, contract for services, medical equipment, supplies, and appliances by implementation of volume purchase plans, single source procurement, or other contracting processes in order to improve cost containment.
SECTION 10.19.(l) Cost‑Containment Programs. – The Department of Health and Human Services, Division of Medical Assistance, may undertake cost‑containment programs in accordance with Section 3 of S.L. 2001‑395, including contracting for services, preadmissions to hospitals, and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.
SECTION 10.19.(m) For all Medicaid eligibility classifications for which the federal poverty level is used as an income limit for eligibility determination, the income limits will be updated each April 1 immediately following publication of federal poverty guidelines.
SECTION 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.
SECTION 10.19.(o) The Department of Health and Human Services shall provide coverage to pregnant women and to children according to the following schedule:
(1) Pregnant women with incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits. In determining income eligibility under this subdivision, the income of a minor's parents shall be counted if the minor is residing in the home.
(2) Infants under the age of 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.
(6) Infants under the age of one whose family income is above one hundred eighty‑five percent (185%) through two hundred percent (200%) of the federal poverty level. Coverage under this subdivision shall be paid for from federal funds received under Title XXI of the Social Security Act, and State matching funds, to implement the Health Insurance Program for Children under Part 8 of Article 2 of Chapter 108A of the General Statutes.
(7) Children aged one through five whose family income is above one hundred thirty‑three percent (133%) through two hundred percent (200%) of the federal poverty level. Coverage under this subdivision shall be paid for from federal funds received under Title XXI of the Social Security Act, and State matching funds, to implement the Health Insurance Program for Children under Part 8 of Article 2 of Chapter 108A of the General Statutes.
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.(p) Medicaid enrollment of categorically needy families with children shall be continuous for one year without regard to changes in income or assets.
SECTION 10.19.(q) The Department of Health and Human Services shall disregard earned income for recipients who would otherwise lose Medicaid eligibility under section 1931 of Title XIX of the Social Security Act due to earnings. This disregard shall be applied for a maximum of 12 consecutive months.
SECTION 10.19.(r) The Division of Medical Assistance, Department of Health and Human Services, may provide incentives to counties that successfully recover fraudulently spent Medicaid funds by sharing State savings with counties responsible for the recovery of the fraudulently spent funds.
SECTION 10.19.(s) If first approved by the Office of State Budget and Management, the Division of Medical Assistance, Department of Health and Human Services, may use funds that are identified to support the cost of development and acquisition of equipment and software through contractual means to improve and enhance information systems that provide management information and claims processing. The Department of Health and Human Services shall identify adequate funds to support the implementation and first year's operational costs that exceed the currently allocated funds for the new contract for the fiscal agent for the Medicaid Management Information System.
SECTION 10.19.(t) The Department of Health and Human Services may adopt temporary rules according to the procedures established in G.S. 150B‑21.1 when it finds that these rules are necessary to maximize receipt of federal funds within existing State appropriations, to reduce Medicaid expenditures, and to reduce fraud and abuse. Prior to the filing of these temporary rules with the Office of Administrative Hearings, the Department shall consult with the Office of State Budget and Management on the possible fiscal impact of the temporary rule and its effect on State appropriations and local governments.
SECTION 10.19.(u) The Department shall report to the Fiscal Research Division of the Legislative Services Office and to the House of Representatives Appropriations Subcommittee on Health and Human Services and the Senate Appropriations Committee on Health and Human Services or the Joint Legislative Health Care Oversight Committee on any change it anticipates making in the Medicaid program that impacts the type or level of service, reimbursement methods, or waivers, any of which require a change in the State Plan or other approval by the Centers for Medicare and Medicaid Services (CMS). The reports shall be provided at the same time they are submitted to CMS for approval.
SECTION 10.19.(w) The Department of Health and Human Services, Division of Medical Assistance, shall use the latest audited cost reporting data available when establishing Medicaid provider rates or when making changes to the reimbursement methodology. For hospital services, the Division shall use the latest audited cost reporting data available, supplemented by additional financial information available to the Division if and to the extent that the Division concludes that the information is reliable and relevant, when establishing rates or when making changes to the reimbursement methodology.
SECTION 10.19.(x) The Department of Health and Human Services, Division of Medical Assistance, shall implement a new coding system for therapeutic mental health services as required by the Health Insurance Portability and Accountability Act of 1996. In implementing the new coding system, the Division shall ensure that the new coding system does not discriminate between providers of therapeutic mental health services with similar qualifications and training. In meeting the requirements of this subsection, the Division shall consult with the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and the professional licensing boards responsible for licensing the affected professionals.
SECTION 10.19.(y) The Department of Health and Human Services may apply federal transfer of assets policies, as described in Title XIX, section 1917(c) of the Social Security Act, including the attachment of liens, to real property excluded as "income producing", tenancy‑in‑common, or nonhomesite property made "income producing" under Title XIX, section 1902(r)(2) of the Social Security Act. The transfer of assets policy shall apply only to an institutionalized individual or the individual's spouse as defined in Title XIX, section 1917(c) of the Social Security Act. This subsection becomes effective no earlier than October 1, 2001. Federal transfer of asset policies and attachment of liens to properties excluded as tenancy‑in‑common or as nonhomesite property made "income producing" in accordance with this subsection shall become effective not earlier than November 1, 2002.
SECTION 10.19.(z) When implementing the Supplemental Security Income (SSI) method for considering equity value of income producing property, the Department shall, to the maximum extent possible, employ procedures to mitigate the hardship to Medicaid enrollees occurring from application of the Supplemental Security Income (SSI) method.
SECTION 10.19.(aa) The Department shall not change medical policy affecting the amount, sufficiency, duration, and scope of health care services and who may provide services until the Division of Medical Assistance has prepared a five‑year fiscal analysis documenting the increased cost of the proposed change in medical policy and submitted it for Departmental review. If the fiscal impact indicated by the fiscal analysis for any proposed medical policy change exceeds three million dollars ($3,000,000) in total requirements for a given fiscal year, then the Department shall submit the proposed policy change with the fiscal analysis to the Office of State Budget and Management and the Fiscal Research Division.
SECTION 10.19.(bb) The Department shall develop, amend, and adopt medical coverage policy in accordance with the following:
(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.
(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.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
MEDICAID RESERVE FUND TRANSFER
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 thirty‑seven million five hundred thousand dollars ($37,500,000) for the 2003‑2004 fiscal year and the sum of thirty‑seven million five hundred thousand dollars ($37,500,000) 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.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
DISPOSITION OF DISPROPORTIONATE SHARE RECEIPTS
SECTION 10.21.(a) Disproportionate share receipts reserved at the end of the 2003‑2004 and 2004‑2005 fiscal years shall be deposited with the Department of State Treasurer as nontax revenue for each of those fiscal years.
SECTION 10.21.(b) For each year of the 2003‑2005 fiscal biennium, as it receives funds associated with Disproportionate Share Payments from State hospitals, the Department of Health and Human Services, Division of Medical Assistance, shall deposit up to one hundred million dollars ($100,000,000) of these Disproportionate Share Payments to the Department of State Treasurer for deposit as nontax revenue. Any Disproportionate Share Payments collected in excess of one hundred million dollars ($100,000,000) shall be reserved by the State Treasurer for future appropriations.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SECTION 10.22.(a) Effective July 1, 2000, the county share of the cost of Medicaid services currently and previously provided by area mental health authorities shall be increased incrementally each fiscal year until the county share reaches fifteen percent (15%) of the nonfederal share by State fiscal year 2009‑2010.
SECTION 10.22.(b) Effective July 1, 2000, the county share of the cost of Medicaid Personal Care Services paid to adult care homes shall be decreased incrementally each fiscal year until the county share reaches fifteen percent (15%) of the nonfederal share by State fiscal year 2009‑2010.
Requested by: Senators Purcell, Reeves, Pittenger, Garrou, Dalton, Hagan
MEDICAID COST CONTAINMENT ACTIVITIES
SECTION 10.23.(a) The Department of Health and Human Services may use not more than six million dollars ($6,000,000) for the 2003‑2004 fiscal year in Medicaid funds budgeted for program services to support the cost of administrative activities when cost‑effectiveness and savings are demonstrated. The funds shall be used to support activities that will contain the cost of the Medicaid Program, including contracting for services or hiring additional staff. Medicaid cost‑containment activities may include prospective reimbursement methods, incentive‑based reimbursement methods, service limits, prior authorization of services, periodic medical necessity reviews, revised medical necessity criteria, service provision in the least costly settings, plastic magnetic stripped Medicaid identification cards for issuance to Medicaid enrollees, fraud detection software or other fraud detection activities, credit balance recovery and data mining services, and other cost‑containment activities. Funds may be expended under this section only after the Office of State Budget and Management has approved a proposal for the expenditure submitted by the Department. Proposals for expenditure of funds under this section shall include the cost of implementing the cost‑containment activity and documentation of the amount of savings expected to be realized from the cost‑containment activity. The Department shall provide a copy of proposals for expenditures under this section to the Fiscal Research Division.
SECTION 10.23.(b) As part of any efforts to contain Medicaid Program costs, the Department of Health and Human Services, Division of Medical Assistance, shall establish reimbursement rates that will allow efficient Medicaid providers to comply with certification requirements, licensure rules, or other mandated quality or safety standards.
SECTION 10.23.(c) The Department of Health and Human Services shall identify software available to improve the Department's detection of Medicaid fraud and shall contract with a software consultant to test, on a pilot basis, the software's effectiveness in detecting Medicaid provider fraud. The pilot test shall focus on professional services claims under the Medicaid program and shall produce analytic reports that highlight episodes of care and enable the Department to perform more detailed and in‑depth data mining and analysis than is currently being conducted. In order to promote maximum effectiveness of the software being tested, the Department shall establish a robust data mining system to review dynamic episodes of care and shall provide the software consultant with access to between one and three years of paid claims' data and to both an eligibility file and a recipient history file. A contract or agreement between the Department and the software consultant shall provide for protecting the confidentiality of all confidential data to which the software consultant may have access.
The Department of Health and Human Services, Division of Medical Assistance, shall implement the pilot test of fraud detection software not later than October 1, 2003, and shall report on the status and results of the pilot 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 December 1, 2003, and again on April 1, 2004. The Department shall make recommendations to the General Assembly upon its convening on the effectiveness of the software pilot tested, anticipated savings to be realized from the purchase of the software for systemwide use, and the amount of funds needed to purchase the software.
Funds allocated in subsection (a) of this section to the Department of Health and Human Services shall be used to implement this subsection. Of these funds, the Department may use up to seventy‑five thousand dollars ($75,000) for the pilot test of the software and for consulting services. If, upon completion of the pilot test, the Secretary finds that the software used in the pilot is successful in identifying Medicaid fraud and that application of the software to the full Medical Assistance Program will result in substantial savings to the Program and the State, the Department shall use funds allocated in this section in an amount not to exceed the actual cost of purchasing the software and contracting for consulting services to apply the software technology to the full Medical Assistance Program. The requirement in subsection (a) of this section pertaining to approval by the Office of State Budget and Management does not apply to funds expended under this subsection.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
INCREASES IN FEDERAL MEDICAID FUNDS
SECTION 10.24.(a) Notwithstanding any other provision of law to the contrary, the total amount of State funds that become available to the Department of Health and Human Services for the 2003‑2004 fiscal year due to an increase in federal Medicaid funds resulting from increases in the Federal Financial Participation rate shall be used to increase funds appropriated to the Department for the 2003‑2004 fiscal year for the Medicaid program without any reduction in what is otherwise allocated to the Department from appropriated funds.
SECTION 10.24.(b) The Department of Health and Human Services, Division of Medical Assistance, may reinstate eligibility policies changed by this act when all of the following conditions are met:
(1) Congress approves enhanced Federal Financial Participation for State Medicaid programs.
(2) Receipt of the enhanced Federal Financial Participation is dependent on a State's maintenance of effort in Medicaid eligibility.
(3) The Department has concluded that the enacted policy changes render the State ineligible for the enhanced Federal Financial Participation.
(4) Enhanced Federal Financial Participation receipts exceed the anticipated savings in State funds from the enacted policy changes.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
TRANSFER OF PROPERTY TO QUALIFY FOR MEDICAID
SECTION 10.26. G.S. 108A‑58 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
one year prior to the date of applying for medical assistance benefits, unless
some other within the time period is 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 subsection
(c) of this section.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. in accordance with the following schedule,
whichever is sooner;
(1) For
uncompensated value of at least one thousand dollars ($1,000) but not more than
six thousand dollars ($6,000), a one‑year period of ineligibility from
date of sale, gift, assignment or transfer;
(2) For
uncompensated value of more than six thousand dollars ($6,000) but not more
than twelve thousand dollars ($12,000), a two‑year period of
ineligibility from date of sale, gift, assignment or transfer;
(3) For
uncompensated value of more than twelve thousand dollars ($12,000), a two‑year
period of ineligibility from date of sale, gift, assignment or transfer, plus
one additional month of ineligibility for each five hundred dollar ($500.00)
increment or portion thereof by which the uncompensated value exceeds twelve
thousand dollars ($12,000), but in no event to exceed three years.
(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 one year of making application for
such assistance and the consequences of the sale, gift, assignment of
transfer of such tangible personal property shall be determined under the
provisions of subsections (c), (f) and (g) (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) In the event
that there is more than one sale, gift, assignment or transfer of property or
an interest therein by a person receiving medical assistance or within one year
of the date of an application for medical assistance, unless some other time
period is mandated by controlling federal law, the uncompensated value, for the
purposes of subsection (c), shall be the aggregate uncompensated value of all
sales, gifts, assignments and transfers. The date which is the midpoint between
the date of the first and last sale, gift, assignment or transfer shall be the
date from which the period of ineligibility shall be determined under
subsection (c).
(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."
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SECTION 10.27. Part 6 of Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A-55.1. Medicare enrollment required.
The Department shall require State Medical Assistance Program recipients who qualify for Medicare to enroll in Medicare, in accordance with Title XIX of the Social Security Act, in order to pay medical expenditures that qualify for payment under Medicare Part B. Failure to enroll in Medicare shall result in nonpayment of these expenditures under the State Medical Assistance Program. A provider may seek payment for services from Medicaid enrollees who are eligible for but not enrolled in Medicare Part B."
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
MEDICAID ASSESSMENT PROGRAM FOR SKILLED NURSING FACILITIES
SECTION 10.28.(a) The Secretary of Health and Human Services shall implement a Medicaid assessment program for skilled nursing facilities licensed under Chapter 131E of the General Statutes. The assessment shall be imposed in a manner consistent with federal regulations under 42 C.F.R. Part 433, Subpart B. The Department shall impose the assessment effective October 1, 2003. Funds realized from assessments imposed shall be used only to draw down federal Medicaid matching funds for implementing the new reimbursement plan for nursing homes and for increasing nursing facility rates in accordance with the plan.
SECTION 10.28.(b) Funds realized from the Medicaid assessment program established pursuant to subsection (a) of this section shall not be used to supplant State funds appropriated for nursing facility services.
SECTION 10.28.(c) Funds realized from the assessment shall be used to pay one hundred percent (100%) of the nonfederal share for the new reimbursement plan for nursing homes.
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
SECTION 10.29.(a) G.S. 108A‑70.19 reads as rewritten:
"§ 108A‑70.19. Short title; purpose; no entitlement.
This Part may be cited as "The Health Insurance Program for Children Act of 1998." The purpose of this Part is to provide comprehensive health insurance coverage to uninsured low‑income children who are residents of this State. Coverage shall be provided from federal funds received, State funds appropriated, and other nonappropriated funds made available for this purpose. Funds received, appropriated, or otherwise made available for the Program shall be used to cover:
(1) Children eligible under G.S. 108A-70.21;
(2) Infants under the age of one year whose family income is from one hundred eighty-five percent (185%) through two hundred percent (200%) of the federal poverty level who receive services under the State Medical Assistance Program; and
(3) Children age one year through five years whose family income is above one hundred thirty-three percent (133%) through two hundred percent (200%) of the federal poverty level who receive service under the State Medical Assistance Program.
NothingExcept for
infants and children described in subdivisions (2) and (3) of this section who receive
services under the State Medical Assistance Program, nothing in this Part
shall be construed as obligating the General Assembly to appropriate funds for
the Program or as entitling any person to coverage under the Program."
SECTION 10.29.(b) G.S. 108A‑70.21(a) reads as rewritten:
"(a) Eligibility. – The Department may enroll eligible children based on availability of funds. Following are eligibility and other requirements for participation in the Program:
(1) Children must:
a. Be under the age of 19;
b. Be ineligible for Medicaid, Medicare, or other federal government‑sponsored health insurance;
c. Be uninsured;
d. Be in a family that
meets the following family income requirements:
1. Infants under
the age of one year whose family income is from one hundred eighty‑five
percent (185%) through two hundred percent (200%) of the federal poverty level;
2. Children age
one year through five years whose family income is above one hundred thirty‑three
percent (133%) through two hundred percent (200%) of the federal poverty level;
and
3. Children
Be age six years through eighteen years whose family income is above one hundred percent (100%) through two hundred percent (200%) of the federal poverty level;
e. Be a resident of this State and eligible under federal law; and
f. Have paid the Program enrollment fee required under this Part.
(2) Proof of family income and residency and declaration of uninsured status shall be provided by the applicant at the time of application for Program coverage. The family member who is legally responsible for the children enrolled in the Program has a duty to report any change in the enrollee's status within 60 days of the change of status.
(3) If a responsible parent is under a court order to provide or maintain health insurance for a child and has failed to comply with the court order, then the child is deemed uninsured for purposes of determining eligibility for Program benefits if at the time of application the custodial parent shows proof of agreement to notify and cooperate with the child support enforcement agency in enforcing the order.
If health insurance other than under the Program is provided to the child after enrollment and prior to the expiration of the eligibility period for which the child is enrolled in the Program, then the child is deemed to be insured and ineligible for continued coverage under the Program. The custodial parent has a duty to notify the Department within 10 days of receipt of the other health insurance, and the Department, upon receipt of notice, shall disenroll the child from the Program. As used in this paragraph, the term "responsible parent" means a person who is under a court order to pay child support.
(4) Except as otherwise provided in this section, enrollment shall be continuous for one year. At the end of each year, applicants may reapply for Program benefits."
SECTION 10.29.(c) G.S. 108A‑70.21(b) reads as rewritten:
"(b) Benefits. – Except
as otherwise provided for eligibility, fees, deductibles, copayments, and other
cost‑sharing charges, health benefits coverage provided to children
eligible under the Program shall be equivalent to coverage provided for
dependents under the North Carolina Teachers' and State Employees'
Comprehensive Major Medical Plan, including optional prepaid plans. Prescription
drug providers shall accept as payment in full, for outpatient prescriptions
filled, ninety percent (90%) of the average wholesale price for the
prescription drug or the amounts published by the Centers for Medicare and
Medicaid Services plus a dispensing fee of five dollars and sixty cents ($5.60)
per prescription for generic drugs and four dollars ($4.00) per prescription
for brand name drugs. All other health care providers providing services
to Program enrollees shall accept as payment in full for services rendered the
maximum allowable charges under the North Carolina Teachers' and State
Employees' Comprehensive Major Medical Plan for services less any copayments
assessed to enrollees under this Part. No child enrolled in the Plan's self‑insured
indemnity program shall be required by the Plan to change health care providers
as a result of being enrolled in the Program.
In addition to the benefits provided under the Plan, the following services and supplies are covered under the Health Insurance Program for Children established under this Part:
(1) Dental: Oral examinations, teeth cleaning, and scaling twice during a 12‑month period, full mouth X‑rays once every 60 months, supplemental bitewing X‑rays showing the back of the teeth once during a 12‑month period, fluoride applications twice during a 12‑month period, sealants, simple extractions, therapeutic pulpotomies, prefabricated stainless steel crowns, and routine fillings of amalgam or other tooth‑colored filling material to restore diseased teeth. No benefits are to be provided for services under this subsection that are not performed by or upon the direction of a dentist, doctor, or other professional provider approved by the Plan nor for services and materials that do not meet the standards accepted by the American Dental Association.
(2) Vision: Scheduled routine eye examinations once every 12 months, eyeglass lenses or contact lenses once every 12 months, routine replacement of eyeglass frames once every 24 months, and optical supplies and solutions when needed. Optical services, supplies, and solutions must be obtained from licensed or certified opthamologists, optometrists, or optical dispensing laboratories. Eyeglass lenses are limited to single vision, bifocal, trifocal, or other complex lenses necessary for a Plan enrollee's visual welfare. Coverage for oversized lenses and frames, designer frames, photosensitive lenses, tinted contact lenses, blended lenses, progressive multifocal lenses, coated lenses, and laminated lenses is limited to the coverage for single vision, bifocal, trifocal, or other complex lenses provided by this subsection. Eyeglass frames are limited to those made of zylonite, metal, or a combination of zylonite and metal. All visual aids covered by this subsection require prior approval of the Plan. Upon prior approval by the Plan, refractions may be covered more often than once every 12 months.
(3) Hearing: Auditory diagnostic testing services and hearing aids and accessories when provided by a licensed or certified audiologist, otolaryngologist, or other hearing aid specialist approved by the Plan. Prior approval of the Plan is required for hearing aids, accessories, earmolds, repairs, loaners, and rental aids.
The Department may provide services to children enrolled in the Program through the State Medical Assistance managed care program. Services provided through the managed care program shall be paid for from Program funds."
SECTION 10.29.(d) G.S. 108A‑70.21(d) reads as rewritten:
"(d) Cost‑Sharing.
– There shall be no deductibles, copayments, or other cost‑sharing
charges for families covered under the Program whose family income is at or
below one hundred fifty percent (150%) of the federal poverty level. level,
except that fees for outpatient prescription drugs are applicable and shall be
one dollar ($1.00) for each outpatient generic prescription drug and for each
outpatient brand‑name prescription drug for which there is no generic
substitution available. The fee for each outpatient brand‑name
prescription drug for which there is a generic substitution available is three
dollars ($3.00). Families covered under the Program whose family income is
above one hundred fifty percent (150%) of the federal poverty level shall be
responsible for copayments to providers as follows:
(1) Five dollars ($5.00) per child for each visit to a provider, except that there shall be no copayment required for well‑baby, well‑child, or age‑appropriate immunization services;
(2) Five dollars ($5.00) per child for each outpatient hospital visit;
(3) A six dollar ($6.00)
fee for each outpatient prescription drug purchased; one‑dollar
($1.00) fee for each outpatient generic prescription drug and for each
outpatient brand‑name prescription drug for which there is no generic substitution
available. The fee for each outpatient brand‑name prescription drug for
which there is a generic substitution available is ten dollars ($10.00).
(4) Twenty dollars ($20.00) for each emergency room visit unless:
a. The child is admitted to the hospital, or
b. No other reasonable care was available as determined by the Claims Processing Contractor of the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan.
Copayments required under this subsection for prescription drugs apply only to prescription drugs prescribed on an outpatient basis."
SECTION 10.29.(e) G.S. 108A‑70.24 reads as rewritten:
"§ 108A‑70.24. Claims processing; payments.
(a) The North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan shall be responsible for the administration and processing of claims for benefits under the Program, as provided under Part 5 of Article 3 of Chapter 135 of the General Statutes.
(b) The After
reserving sufficient funds made available for this Program to cover the cost of
State Medical Assistance Program services to infants under the age of one year
whose family income is from one hundred eighty-five percent (185%) through two
hundred percent (200%) of the federal poverty level, and children age one year
through five years whose family income is above one hundred thirty-three
percent (133%) through two hundred percent (200%) of the federal poverty level,
the Department shall, from State and federal appropriations, and from any
other funds made available for this purpose, make premium payments to the North
Carolina Teachers' and State Employees' Comprehensive Major Medical Plan as
determined by the Plan for its administration, claims processing, and other
services authorized to provide coverage for acute medical care to children
eligible for benefits under this Part.
(c) The North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan shall also be responsible for the administration and processing of claims for benefits provided under G.S. 108A‑70.23 and not covered by Part 5 of Article 3 of Chapter 135 of the General Statutes. Such claims payments shall be made against accounts maintained by the Department."
SECTION 10.29.(f) G.S. 108A‑70.23(c) reads as rewritten:
"(c) Services Provided. – The services authorized to be provided to children eligible under this section are as follows:
(1) The same level of
services as provided for special needs children under the Medical Assistance
Program as authorized in the Current Operations Appropriations Act except that
that:
a. no No services
for long‑term care shall be provided under this section, and section;
b. except that services
Services for respite care shall be provided only under emergency
circumstances; and
c. The Department may limit services for special needs children after consultation with the Commission on Children with Special Health Care Needs.
(2) Only those services eligible under this section that are not covered or otherwise provided under Part 5 of Article 3 of Chapter 135 of the General Statutes."
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
COLLABORATION AMONG DHHS, DPI, AND LEAS TO ENSURE MEDICAID‑RELATED SERVICES FOR ELIGIBLE PUBLIC SCHOOL STUDENTS WITH DISABILITIES
SECTION 10.29A. Part 6 of Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A-55.1. Collaboration among agencies to ensure Medicaid-related services payments to eligible students with disabilities in public schools.
The Department shall work with the Department of Public Instruction and local education agencies to develop efficient, effective, and appropriate administrative procedures and guidelines to provide maximum funding for Medicaid-related services for Medicaid-eligible students with disabilities. The procedures and guidelines shall be streamlined to ensure that local education agencies receive Medicaid reimbursement in a timely manner for Medicaid-related services and administrative outreach to Medicaid‑eligible students with disabilities."
Requested by: Senators Purcell, Reeves, Garrou, Dalton, Hagan
AUDIT OF CAP/DA PROGRAMS BY STATE AUDITOR
SECTION 10.29B.(a) The State Auditor shall perform an audit of the Community Alternatives Program for Disabled Adults (CAP/DA). The audit shall build upon the results of the study conducted in accordance with S.L. 2002‑126, Section 10.16(c), by the North Carolina Institute of Medicine and shall provide information necessary to determine whether CAP/DA is operating within waiver guidelines and program goals. The State Auditor shall report the results of the audit to the North Carolina Study Commission on Aging by January 1, 2004.
SECTION 10.29B.(b) The Department of Health and Human Services shall continue to examine CAP/DA and shall make a report of its findings to the North Carolina Study Commission on Aging by January 1, 2004. The report shall include the following information:
(1) A review of the current assessment process for CAP/DA clients, including an explanation of how assessments are conducted and a comparison of the assessment process for CAP/DA clients with the assessment process for nursing home and adult care home clients.
(2) A description of total program costs to the State and counties for clients receiving CAP/DA payments and an analysis of per‑client costs in CAP/DA to per‑client costs in nursing homes and adult care homes. This analysis shall include the costs of all forms of assistance received by CAP/DA clients, such as food stamps and housing assistance.
(3) A description of total program costs and an analysis of per‑participant costs for individuals in the State‑County In‑Home Program. The analysis shall include a comparison of per‑client costs for participants in the In‑Home Program to pe‑client costs in adult care homes.
(4) A description of the monitoring of quality of care for CAP/DA clients.
(5) An evaluation of the current waiting list procedures.
Requested by: Senators Purcell, Reeves , Garrou, Dalton, Hagan
BLUE RIBBON COMMISSION ON MEDICAID REFORM
SECTION 10.29C.(a) There is established the North Carolina Blue Ribbon Commission on Medicaid Reform (Commission). The Commission shall examine the State's Medicaid program and make comprehensive recommendations for fundamental reform. The Commission shall consider:
(1) Methods to responsibly restrain the growth in Medicaid spending.
(2) Best practices in both the public and private sectors in managing and administering health care.
(3) Options for maximizing existing resources while controlling Medicaid program costs.
(4) Current array of services available within the State Medicaid program to determine the appropriateness of the type, frequency, and duration of those services.
(5) Opportunities for long‑term, systemic change in the Medicaid program through the use of federal waivers and other management tools.
(6) The impact on the Medicaid program of expanding eligibility and services in order to maximize federal funds to replace State and county funds for Medicaid programs.
(7) The role of Medicaid in the State's economy, including:
a. The role played by Medicaid in ensuring an adequate and effective health care delivery system;
b. The role of an adequate and effective health care delivery system in economic development;
c. Jobs created by Medicaid programs; and
d. The adverse effects of inadequate Medicaid payments and reduced Medicaid eligibility on private sector health benefit plans.
(8) Any other matter relating to reform of the State Medicaid program.
SECTION 10.29C.(b) The Commission shall consist of 12 members appointed as follows:
(1) Six members appointed by the Speaker of the House of Representatives, including one member who shall be designated as House Cochair. No more than three may be legislators.
(2) Six members appointed by the President Pro Tempore of the Senate, including one member who shall be designated as Senate Cochair. No more than three may be legislators.
The appointing officer shall fill vacancies. The Commission shall meet at the call of the Cochairs. Members of the Commission shall receive per diem, subsistence, and travel expenses as provided in G.S. 120‑3.1, 138‑5, or 138‑6, as appropriate. The Commission may contract for consultant services as provided in G.S. 120‑32.02. Upon approval of the Legislative Services Commission, the Legislative Services Officer shall assign professional staff to assist the Commission in its work. Clerical staff shall be furnished to the Commission through the offices of the House of Representatives and Senate Directors of Legislative Assistants. The Commission may meet in the Legislative Building or the Legislative Office Building. The Commission may exercise all of the powers provided und