GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
H 7
HOUSE BILL 2436*
Committee Substitute Favorable 6/3/08
Committee Substitute #2 Favorable 6/3/08
Fourth Edition Engrossed 6/5/08
Senate Appropriations/Base Budget Committee Substitute Adopted 6/17/08
Senate Finance
Committee Substitute Adopted 6/17/08
Seventh Edition Engrossed 6/19/08
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Short Title: Modify Appropriations Act of 2007. |
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Referred to: |
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May 26, 2008
A BILL TO BE ENTITLED
AN ACT to modify the current operations and capital appropriations act of 2007.
The General Assembly of North Carolina enacts:
PART I. INTRODUCTION AND TITLE OF ACT
SECTION 1.1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the State Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year as provided in G.S. 143C‑1‑2(b).
SECTION 1.2. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2008."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund FY 2008‑2009
EDUCATION
Community Colleges System Office $ 31,129,698
Department of Public Instruction 75,762,945
University of North Carolina – Board of Governors
Appalachian State University (175,179)
East Carolina University
Academic Affairs 1,665,101
Health Affairs 0
Elizabeth City State University 0
Fayetteville State University (250,409)
NC Agricultural and Technical University (476,363)
North Carolina Central University 0
North Carolina School of the Arts 0
North Carolina State University
Academic Affairs (622,928)
Agricultural Extension 0
Agricultural Research 0
University of North Carolina at Asheville (26,836)
University of North Carolina at Chapel Hill
Academic Affairs (589,752)
Health Affairs (736,357)
Area Health Education Centers 0
University of North Carolina at Charlotte (756,504)
University of North Carolina at Greensboro 0
University of North Carolina at Pembroke (59,019)
University of North Carolina at Wilmington (752,940)
Western Carolina University (159,665)
Winston‑Salem State University 0
General Administration 0
University Institutional Programs 100,837,867
Related Educational Programs (52,965,000)
North Carolina School of Science and Mathematics 0
UNC Hospitals at Chapel Hill 0
Total University of North Carolina Board of Governors $ 44,932,016
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary $ (9,759,966)
Division of Aging 2,500,000
Division of Blind Services/Deaf/HH 75,000
Division of Child Development (5,602,422)
Division of Education Services 698,940
Division of Facility Services 822,028
Division of Medical Assistance (186,500,748)
Division of Mental Health 25,847,833
NC Health Choice 2,376,893
Division of Public Health 6,880,537
Division of Social Services 1,929,632
Division of Vocation Rehabilitation (2,000,000)
Total Health and Human Services $ (162,732,273)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 460,589
Department of Commerce
Commerce 7,310,470
Commerce State‑Aid 7,401,578
NC Biotechnology Center (155,834)
Rural Economic Development Center 49,756,974
Department of Environment and Natural Resources
Environment and Natural Resources 8,706,305
Clean Water Management Trust Fund 0
Department of Labor 51,392
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 132,088
Department of Crime Control and Public Safety 2,387,175
Judicial Department (736,374)
Judicial Department – Indigent Defense (435,057)
Department of Justice (601,079)
Department of Juvenile Justice and Delinquency Prevention 19,894,280
GENERAL GOVERNMENT
Department of Administration $ 950,548
Office of Administrative Hearings 313,544
Department of State Auditor (283,938)
Office of State Controller (110,940)
Department of Cultural Resources
Cultural Resources 2,960,367
Roanoke Island Commission (15,000)
State Board of Elections 582,934
General Assembly (881,000)
Office of the Governor
Office of the Governor (84,205)
Office of State Budget and Management 15,242
OSBM – Reserve for Special Appropriations 16,050,000
Housing Finance Agency 12,000,000
Department of Insurance
Insurance 633,492
Insurance – Volunteer Safety Workers' Compensation (1,150,000)
Office of Lieutenant Governor 0
Department of Revenue 8,584,136
Department of Secretary of State 135,771
Department of State Treasurer
State Treasurer 763,829
State Treasurer – Retirement for Fire and Rescue Squad Workers 1,027,851
TRANSPORTATION
Department of Transportation 0
RESERVES, ADJUSTMENTS, AND DEBT SERVICE
Compensation Increases $ 366,494,351
Bonus Pay for Mental Health Nurses 500,000
Salary Adjustment Fund 2007‑2009 Biennium 0
Teachers' & State Employees' Retirement Contributions 30,237,400
Hospitalization Reserve (5,000,000)
Reserve for Eliminated Positions 0
No Penalty for Teachers Taking Personal Leave Day 5,000,000
Contingency and Emergency Fund 0
Information Technology Fund 0
Job Development Investment Grants Reserve 15,000,000
Prevention of Pesticide Exposure 357,055
Worker Safety Positions 350,000
Criminal Justice Data Integration Pilot 5,000,000
Pending Gang Prevention Legislation 10,000,000
Debt Service
General Debt Service (17,500,000)
Federal Reimbursement 0
TOTAL CURRENT OPERATIONS – GENERAL FUND $ 535,196,530
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) Section 2.2.(a) of S.L. 2007‑323 is repealed. The General Fund availability used in adjusting the 2008‑2009 budget is shown below:
FY 2008‑2009
Unappropriated Balance from FY 2007‑2008 $ 270,504,098
Net Adjustments – S.L. 2007‑540 (1,000,000)
Adjustment from Estimated to Actual 2007‑2008
Beginning Unreserved Balance 47,867,864
Projected Reversions from FY 2007‑2008 150,000,000
Projected Over Collections from FY 2007‑2008 151,500,000
Year‑End Unreserved Credit Balance before Earmarkings 618,871,962
Less: Credit to Savings Reserve Account (13,400,000)
Less: Credit to Repairs and Renovations Reserve Account (100,000,000)
Revised Year‑End Unreserved Credit Balance $ 505,471,962
Revenues Based on Existing Tax Structure $ 19,903,800,000
Nontax Revenues
Investment Income $ 247,300,000
Judicial Fees 204,800,000
Disproportionate Share 100,000,000
Insurance 62,900,000
Other Nontax Revenues 160,600,000
Highway Trust Fund Transfer 172,500,000
Highway Fund Transfer 17,600,000
Subtotal Nontax Revenues $ 965,700,000
Total General Fund Availability $ 21,374,971,962
Adjustments to Availability: 2008 Session
Reserve for Tax Relief $ (50,000,000)
Health Care Facility Construction Project Fee Increase 822,028
Adjust Securities Filing Fee 2,500,000
Reduce Transfer from Highway Trust Fund (25,000,000)
Transfer from Disaster Relief Reserve (Western NC Disasters) 21,000,000
Transfer from NC Rx Unexpended Balance 3,500,000
Transfer from Tobacco Trust Fund 5,000,000
Transfer from Health & Wellness Trust Fund 5,000,000
Transfer from Coaching Scholarship Fund 267,000
Transfer from Principal Fellows Trust Fund 1,000,000
Transfer from NC Community College System Computer
Information System (CIS) Unexpended Balance 4,500,000
Transfer from Focused Industrial Training Unexpended Balance 783,246
Transfer from Disproportionate Share Receipt Reserve 19,300,000
Adjust Transfer from Insurance Regulatory Fund 633,492
Adjust Transfer from Treasurer's Office 763,829
Adjust Asbestos Hazard Removal Program Cap 112,901
Subtotal Adjustments to Availability: 2008 Session $ (9,817,504)
Revised General Fund Availability for the 2008‑2009 Fiscal Year $ 21,365,154,458
Less: Total General Fund Appropriations
for the 2008‑2009 Fiscal Year $ (21,365,154,458)
Unappropriated Balance Remaining $ 0
SECTION 2.2.(b) Notwithstanding the provisions of G.S. 143C‑4‑3, the State Controller shall transfer one hundred million dollars ($100,000,000) from the unreserved fund balance to the Repairs and Renovations Reserve Account on June 30, 2008. This subsection becomes effective June 30, 2008.
SECTION 2.2.(c) Funds transferred under this section to the Repairs and Renovations Reserve Account are appropriated for the 2008‑2009 fiscal year to be used in accordance with G.S. 143C‑4‑3.
SECTION 2.2.(c1) Notwithstanding G.S. 143C‑4‑2, the State Controller shall transfer only thirteen million four hundred thousand dollars ($13,400,000) from the unreserved fund balance to the Savings Reserve Account on June 30, 2008. This is not an "appropriation made by law," as that phrase is used in Article V, Section 7(1) of the North Carolina Constitution. This subsection becomes effective June 30, 2008.
SECTION 2.2.(d) Section 2.2.(d) of S.L. 2007‑323 reads as rewritten:
"SECTION 2.2.(d)
Notwithstanding the provisions of G.S. 105‑187.9(b)(1), the sum to
be transferred under that subdivision for the 2007‑2008 fiscal year is
one hundred seventy million dollars ($170,000,000) and for the 2008‑2009
fiscal year is one hundred seventy million dollars ($170,000,000).
one hundred forty‑five million dollars ($145,000,000)."
SECTION 2.2.(e) Notwithstanding G.S. 143C‑9‑3, of the funds credited to the Tobacco Trust Fund, the sum of five million dollars ($5,000,000) shall be transferred from the Department of Agriculture and Consumer Services, Budget Code 23703 (Tobacco Trust Fund), to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2008‑2009 fiscal year.
SECTION 2.2.(f) Notwithstanding G.S. 143C‑9‑3, of the funds credited to the Health Trust Account, the sum of five million dollars ($5,000,000) that would otherwise be deposited in the Fund Reserve 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 2008‑2009 fiscal year.
SECTION 2.2.(g) On July 1, 2008, the State Controller shall transfer twenty‑one million dollars ($21,000,000) from the Disaster Reserve Fund to Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2008‑2009 fiscal year.
SECTION 2.2.(h) On July 1, 2008, the State Controller shall transfer nineteen million three hundred thousand dollars ($19,300,000) from the Disproportionate Share Receipt Reserve to Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2008‑2009 fiscal year.
SECTION 2.2.(i) Transfers of additional availability in the amount of ten million eight hundred fourteen thousand seventy‑five dollars ($10,814,075) are made to the General Fund pursuant to Sections 8.9, 9.1, 9.4, and 10.1 of this act.
SECTION 2.2.(j) The Office of State Budget and Management and the Legislative Fiscal Research Division shall review the condition of revenues for the General Fund after the first four months of the fiscal year. This examination shall include assessments of revenues to date, trends in revenues and the economy expected for the remainder of the fiscal year, and any other relevant data. The Office and Division shall use conservative forecasting practices in order to ensure the viability of any review in the formation of a certified consensus estimate. If the Office of State Budget and Management and the Legislative Fiscal Research Division jointly certify that actual recurring General Fund revenues are expected to exceed the revenues included in subsection (a) of this section in the General Fund availability statement for the 2008‑2009 fiscal year, the Governor may, after consultation with the Speaker of the House and the President Pro Tempore of the Senate, use fifty percent (50%) of funds made available by said certified estimate to reduce or eliminate to the extent feasible the disparity between North Carolina teacher pay and the national average for teachers of similar levels of education and experience, pursuant to Section 2.2(j) of S.L. 2005‑276. The Governor shall use these funds to increase each step on the teacher salary schedule by an equal flat‑dollar amount.
Notwithstanding any other provision of law, fifty percent (50%) of those excess recurring General Fund revenues that are collected or expected to be collected under the certified consensus estimate may be used to support this salary increase for the 2008‑2009 fiscal year. These funds shall not exceed two hundred million dollars ($200,000,000). Any such unused funds shall remain unspent at the end of the fiscal year.
PART III. CURRENT OPERATIONS/HIGHWAY FUND
CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
SECTION 3.1. Appropriations from the State Highway Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are adjusted for the fiscal year ending June 30, 2009, according to the following schedule. Amounts set out in brackets are reductions from Highway Fund Appropriations for the 2008‑2009 fiscal year.
2008‑2009
Department of Transportation
Administration ($9,583,308)
Repairs and Renovations 9,084,221
Division of Highways
Administration 0
Construction 1,807,592
Maintenance 24,542,804
Planning and Research 0
OSHA Program 0
Ferry Operations 1,000,000
Public Transportation 0
Airports 0
Railroads 1,000,000
Governor's Highway Safety Program 0
Division of Motor Vehicles 245,266
State Aid to Municipalities 1,807,592
Transfers to Other State Agencies 431,491
Reserve for Compensation Increases 14,762,342
Reserve for Teachers' and State Employees' Retirement Contribution 1,462,000
TOTAL $46,560,000
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. Section 3.2 of S.L. 2007‑323 is repealed. The Highway Fund availability used in adjusting the 2008‑2009 fiscal year budget is shown below:
Highway Fund Availability Statement 2008‑2009
Unappropriated Balance From Previous Year 0
Beginning Fund Balance 35,000,000
Estimated Revenue 1,822,550,000
Total Highway Fund Availability $1,857,550,000
PART IV HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 4.1. Appropriations from the State Highway Trust Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are adjusted for the fiscal year ending June 30, 2009, according to the following schedule. Amounts set out in brackets are reductions from Highway Trust Fund Appropriations for the 2008‑2009 fiscal year.
Current Operations – Highway Trust Fund 2008‑2009
Intrastate System (40,691,943)
Urban Loops (16,454,126)
Aid to Municipalities (4,269,533)
Secondary Roads (7,687,965)
Program Administration 3,627,360
Transfer to General Fund (25,143,793)
North Carolina Turnpike Authority 25,000,000
Total ($65,620,000)
HIGHWAY TRUST FUND AVAILABILITY STATEMENT
SECTION 4.2. Section 4.2 of S.L. 2007‑323 is repealed. The Highway Trust Fund availability used in adjusting the 2008‑2009 fiscal year budget is shown below:
Highway Trust Fund Availability $1,073,160,000
PART V. OTHER AVAILABILITY and appropriations
CIVIL PENALTIES AND FORFEITURES/FUND AVAILABILITY AND APPROPRIATION
SECTION 5.1.(a) Section 5.1(a) of S.L. 2007‑323 reads as rewritten:
"SECTION 5.1.(a) Availability. – The availability used to support appropriations made in this act from the Civil Penalty and Forfeiture Fund is based upon estimated collections of fines and forfeitures from the agencies and in the amounts listed below:
FY 2007‑2008 FY 2008‑2009
Department of Revenue $63,000,000 $63,000,000 $85,200,000
Department of Transportation $15,000,000 $15,000,000 $22,000,000
Employment Security Commission $ 3,000,000 $3,000,000 $4,200,000
Department of Insurance $ 1,000,000 $1,000,000 $600,000
University of North Carolina $ 3,500,000 $3,500,000 $3,600,000
Other Agencies $10,000,000 $10,000,000 $10,900,000
Total Funds Available $95,500,000 $95,500,000 $126,500,000"
SECTION 5.1.(b) Section 5.1(b) of S.L. 2007‑323 reads as rewritten:
"SECTION 5.1.(b)
Appropriations. – Appropriations are made from the Civil Penalty and Forfeiture
Fund for the fiscal biennium year ending June 30, 2009, as follows:
FY 2007‑2008 FY 2008‑2009
School Technology Fund $18,000,000 $18,000,000
State Public School Fund $77,500,000 $77,500,000 $108,500,000
Total Appropriation $95,500,000 $95,500,000 $126,500,000"
EDUCATION LOTTERY
SECTION 5.2.(a) Pursuant to G.S. 18C‑164, the revenue used to support appropriations made in this act is transferred from the State Lottery Fund in the amount of three hundred eighty‑five million five hundred thousand dollars ($385,500,000) for the 2008‑2009 fiscal year.
SECTION 5.2.(b) Notwithstanding G.S. 18C‑164(b), funds in the amount of nineteen million seven hundred fifty thousand dollars ($19,750,000) shall be transferred from the Education Lottery Reserve Fund to the Education Lottery Fund to support appropriations made in this act. These funds shall be allocated for class size reduction. Any unexpended funds not needed for this purpose shall be transferred back to the Education Lottery Reserve Fund at the end of the 2008‑2009 fiscal year.
SECTION 5.2.(c) Notwithstanding G.S. 18C‑164(d), the appropriations made from the Education Lottery Fund for the 2008‑2009 fiscal year are as follows:
(1) Class Size Reduction $127,864,291
(2) Prekindergarten Program 84,635,709
(3) Public School Building Capital Fund 154,200,000
(4) Scholarships for Needy Students 38,550,000
Total $405,250,000
INFORMATION TECHNOLOGY FUND AVAILABILITY AND APPROPRIATION
SECTION 5.3. Section 5.3 of S.L. 2007‑323 reads as rewritten:
"SECTION 5.3.(a) The availability used to support appropriations made in this act from the Information Technology Fund established in G.S. 147‑33.72H is as follows:
FY 2007‑2008 FY 2008‑2009
Receipts from Information
Technology Enterprise Fee $9,800,000 $9,800,000
BEACON/Data Integration Funds $5,000,000 $5,000,000
Interest Income $100,000 $100,000
IT Fund Balance June 30 $600,000 $690,000
Appropriation from General Fund $4,140,000 $2,840,000
Reversions 0 $800,000
Total Funds Available $19,640,000 $18,430,000
$19,230,000
"SECTION 5.3.(b) Appropriations are made from the Information Technology Fund for the 2007‑2009 fiscal biennium as follows:
Office of Information Technology Services FY 2007‑2008 FY 2008‑2009
Information Technology Operations $9,452,835 $8,152,835
$9,451,778
Information Technology Projects $4,497,165 $4,497,165
$4,129,362
BEACON/Data Integration Funds $5,000,000 $5,000,000
Total $18,950,000 $17,650,000
$18,581,140
"SECTION 5.3.(c) The State shall not enter into any information technology enterprise agreements without obtaining written agreements from participating State agencies regarding apportionment of funding. State agencies agreeing to participate (i) must ensure that sufficient funds are budgeted to support their agreed shares of enterprise agreements throughout the life of the contract and (ii) must transfer the funds agreed upon to the Office of Information Technology Services in sufficient time for ITS to meet contract requirements.
"SECTION 5.3.(d) The Office of State Budget and Management shall identify the sum of eight hundred thousand dollars ($800,000) in year‑end reversions from State agencies to support Information Technology Fund programs and operations."
PART VI. GENERAL PROVISIONS
EXPENDITURES OF FUNDS IN RESERVES LIMITED
SECTION 6.2. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
SECTION 6.3. Notwithstanding G.S. 143C‑6‑4, the Office of State Budget and Management may adjust the enacted budget by making transfers among purposes or programs for the purpose of consolidating budget and fund codes or eliminating inactive budget and fund codes. The Office of State Budget and Management shall change the authorized budget to reflect these adjustments.
CONSULTATION NOT REQUIRED PRIOR TO ESTABLISHING OR INCREASING FEES PURSUANT TO THE STATE BUDGET ACT
AUTHORIZATION TO ESTABLISH RECEIPT‑SUPPORTED POSITIONS
SECTION 6.6. Notwithstanding any other provision of law, a department, institution, or other agency of State government may establish receipt‑supported positions authorized in this act upon approval by the Director of the Budget. The Director, if necessary, may establish a receipt‑supported position pursuant to this section at an annual salary amount different from the salary amount set out in this act if (i) funds are available from the proposed funding source and (ii) the alternative salary amount remains within the established salary range grade identified for the job classification of the affected receipt‑supported position established in this act. The Director shall not change the job classifications or increase the number of receipt‑supported positions specified in this act without prior consultation with the Joint Legislative Commission on Governmental Operations.
CONTINUATION REVIEW OF CERTAIN FUNDS, PROGRAMS, AND DIVISIONS
SECTION 6.7.(a) It is the intent of the General Assembly to establish a process to periodically and systematically review the funds, agencies, divisions, and programs financed by State government. This process shall be known as the Continuation Review Program. The Continuation Review Program is intended to assist the General Assembly in determining whether to continue, reduce, or eliminate funding for the State's funds, agencies, divisions, and programs subject to continuation review.
SECTION 6.7.(b) The Appropriations Committees of the Senate and House of Representatives may review the funds, programs, and divisions listed in this section and shall determine whether to continue, reduce, or eliminate funding for the funds, programs, and divisions, subject to the continuation review program. The Fiscal Research Division may issue instructions to the State departments and agencies subject to continuation review regarding the expected content and format of the reports required by this section. No later than December 1, 2008, the following agencies shall report to the Fiscal Research Division:
(1) Tarheel Challenge Academy – Department of Crime Control and Public Safety.
(2) Spot Safety Program – Department of Transportation.
(3) Safety Inspection Program – Department of Commerce.
(4) Parking Office – Department of Administration.
(5) Military Business Center – Community College System.
SECTION 6.7.(c) The continuation review reports required in this section shall include the following information:
(1) A description of the fund, agency, division, or program mission, goals, and objectives.
(2) The statutory objectives for the fund, agency, division, or program and the problem or need addressed.
(3) The extent to which the fund's, agency's, division's, or program's objectives have been achieved.
(4) The fund, agency, division, or program's functions or programs performed without specific statutory authority.
(5) The performance measures for each fund, agency, division, or program and the process by which the performance measures determine efficiency and effectiveness.
(6) Recommendations for statutory, budgetary, or administrative changes needed to improve efficiency and effectiveness of services delivered to the public.
(7) The consequences of discontinuing funding.
(8) Recommendations for improving services or reducing costs or duplication.
(9) The identification of policy issues that should be brought to the attention of the General Assembly.
(10) Other information necessary to fully support the General Assembly's Continuation Review Program along with any information included in instructions from the Fiscal Research Division.
SECTION 6.7.(d) State departments and agencies identified in subsection (b) of this section shall submit a final report to the General Assembly by March 1, 2009.
STATE SUPPORT OF OUR MILITARY PERSONNEL
SECTION 6.8. The General Assembly finds that North Carolina has a rich military heritage and is the site of some of the nation's major military installations, including Camp Lejeune, Fort Bragg, Pope Air Force Base, Seymour Johnson Air Force Base, New River Marine Corps Air Station, United States Coast Guard Air Station, Elizabeth City, and Cherry Point Marine Corps Air Station. The General Assembly further finds that North Carolina is the home to more than 770,000 veterans of our nation's armed forces, more than 18,000 Army Reserve and National Guard personnel, and about 120,000 active‑duty military, one of the largest active‑duty military populations in our entire country. In appreciation of and gratitude to those North Carolinians, both living and deceased, who have served in our armed forces in service to our country, the General Assembly provides funding for and support of the following initiatives:
(1) Defense and Security Technology Accelerator.
(2) Military Morale, Welfare, and Recreation Fund.
(3) "More at Four" for children of deployed military personnel.
(4) Traumatic Brain Injury (TBI) Services.
(5) Fayetteville Tech 3‑D Technology Project.
(6) National Guard Pension Fund.
(7) National Guard Tuition Assistance Program.
(8) National Guard Family Assistance Centers.
(9) National Guard Armory Rehabilitations.
(10) Master Planning for Future Armory Needs.
(11) Latrines for Camp Butner.
(12) North Carolina State Veterans Park.
FEDERAL AND OTHER RECEIPTS FROM PENDING GRANT AWARDS
SECTION 6.9. Notwithstanding G.S. 143C‑6‑4, State agencies may, with approval of the Director of the Budget, spend funds received from grants awarded subsequent to the enactment of this act, provided the applications for the grants were made prior to May 14, 2008. The Office of State Budget and Management shall work with the recipient State agencies to budget grants award according to the annual program needs and within the parameters of the respective granting entities. Depending on the nature of the award, additional State personnel may be employed on a permanent or time‑limited basis. The Office of State Budget and Management shall consult with the Joint Legislative Commission on Governmental Operations prior to expending any funds received from grant awards. Funds received from such grants are hereby appropriated and shall be incorporated into the certified budget of the recipient State agency.
State Housing Support
SECTION 6.9A. The General Assembly finds that homeownership is the primary means by which families and individuals of low and moderate incomes build wealth. The General Assembly further finds that homeownership and a healthy housing market are essential to the health and economic vitality of North Carolina. To help stabilize the housing market, the General Assembly provides in excess of fourteen million dollars ($14,000,000) in funding for and support of the following initiatives:
(1) $1,000,000 in nonrecurring funds from the State Banking Commission for counseling services to assist homeowners at risk of foreclosure.
(2) $2,000,000 in recurring funds for the Housing Trust Fund, located in the Housing Finance Agency, to provide affordable housing to low‑income citizens.
(3) $7,000,000 in nonrecurring funds for the Housing Trust Fund, located in the Housing Finance Agency, to provide additional independent‑ and supportive‑living apartments for persons with disabilities.
(4) $1,000,000 in recurring funds to the Department of Health and Human Services for operating cost subsidies for independent‑ and supportive‑living apartments for individuals with disabilities.
(5) $3,000,000 in recurring funds for the Home Protection Program, located in the Housing Finance Agency, to provide counseling services and mortgage assistance to citizens who are at risk of foreclosure due to job loss.
(6) $200,000 in recurring funds to the North Carolina State Bar to provide legal assistance to low‑income consumers in cases involving predatory mortgage lending, mortgage broker and loan services abuses, foreclosure defense, and other legal issues that relate to helping low‑income consumers avoid foreclosure and home loss. Of these funds, $100,000 recurring is provided to the Land Loss Prevention Project and $100,000 recurring is provided to the Financial Protection Law Center.
(7) Amends G.S. 7A‑474.3(b) to allow the use of a portion of the estimated $1,700,000 in increased revenue generated by Section 30.8 (a)(4) of S.L. 2007‑323, to provide access to legal assistance to homeowners in cases involving predatory mortgage lending, mortgage broker and loan services abuses, foreclosure defense, and other legal issues that relate to helping consumers avoid foreclosure and home loss.
IMPROVE DISASTER RECOVERY AND BUSINESS CONTINUITY
SECTION 6.10.(a) The State Chief Information Officer (CIO) shall utilize the business and disaster recovery plans submitted under G.S. 147‑33.89 and any other information at the CIO's disposal to determine whether State agencies have made adequate preparations for backing up critical applications.
SECTION 6.10.(b) In cases where backup is not sufficient to minimize any disruptions in critical State services caused by natural or man‑made disasters, the State CIO, in conjunction with the agencies and the Office of State Budget and Management, shall develop plans to utilize the Western Data Center for providing backup.
SECTION 6.10.(c) By December 1, 2008, the State CIO shall report to the Joint Legislative Oversight Committee on Information Technology on the number of critical State applications without adequate backup, the State agencies utilizing the applications, and the plans for providing adequate backup.
SECTION 6.10.(d) This section does not apply to the General Assembly, to the Judicial Department, or to The University of North Carolina and its constituent institutions.
MULTIYEAR CONTRACTS FOR INFORMATION TECHNOLOGY
SECTION 6.11.(a) Notwithstanding the cash management provisions of G.S. 147‑86.11, the Office of Information Technology Services (ITS) may procure information technology goods and services for periods not exceeding three years where the terms require payment of all or a portion of the purchase price at the beginning of the agreement. All of the following conditions must be met before payment for these agreements may be disbursed:
(1) Any advance payment complies with the ITS budget.
(2) The State Controller receives conclusive evidence that the proposed agreement would be more cost‑effective than a multiyear agreement that complies with G.S. 147‑86.11.
(3) The procurement complies in all other respects with applicable statutes and rules.
(4) The proposed agreement contains contract terms that protect the financial interests of the State against contractor nonperformance or insolvency through the creation of escrow accounts for funds, source codes, or both, or by other reasonable means that have legally binding effect.
SECTION 6.11.(b) The Office of State Budget and Management (OSBM) shall ensure that the savings from any authorized agreement will be included in the ITS calculation of rates before OSBM annually approves the proposed rates.
SECTION 6.11.(c) The Office of Information Technology Services shall report to the Office of State Budget and Management on any State agency budget impacts resulting from the multiyear contracts.
SECTION 6.11.(d) By January 1, 2009, then quarterly thereafter, the Office of Information Technology Services shall submit a written report of any authorizations granted under this section to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division.
STATE GEOGRAPHIC INFORMATION/CONSOLIDATION IMPLEMENTATION
SECTION 6.13. The State Chief Information Officer (SCIO), the Office of State Budget and Management (OSBM), and the Geographic Information Coordinating Council (GICC) shall develop a detailed plan to implement the recommendations contained in the Geographic Information System Study mandated by Section 6.13 of S.L. 2007‑323. The implementation plan shall include, at a minimum, details relating to all of the following:
(1) The current and future costs of unconsolidated State agency GIS efforts and an estimate of savings to be realized by the consolidation of GIS efforts.
(2) A cost estimate for implementing the consolidation plan, with specific costs associated with each study report recommendation and the amount of any additional funding requirements to accomplish the consolidation and transfer.
(3) An accounting of funds, furniture, equipment, and other operational resources to be transferred from the Department of Environment and Natural Resources (DENR) to the SCIO to support the Center for Geographic Information and Analysis (CGIA) and the GICC.
(4) A description of personnel positions to be (i) transferred from DENR to SCIO and the sources and amount of funding associated with each position and (ii) eliminated due to the consolidation, if any.
(5) Any new positions required and the costs associated with each new position.
(6) Projects that can be consolidated as part of the plan implementation and the State agencies or contractors, or both, responsible for each of those projects.
(7) A time line for implementation, including specific benchmarks.
By December 1, 2008, this detailed implementation plan shall be submitted to the Chairs of the House and Senate Appropriations Committees and to the Fiscal Research Division of the Legislative Services Office.
SECTION 6.14.(a) The State Chief Information Officer shall develop a detailed plan providing for the transition of all State agencies, departments, and institutions except for The University of North Carolina and its constituent institutions to a single statewide electronic mail system by January 1, 2010. This plan shall be developed in consultation with each organization not currently using the Office of Information Technology Services (ITS) electronic mail system and shall specifically address any issues identified by these organizations.
SECTION 6.14.(b) The plan shall be presented to the Joint Legislative Oversight Committee on Information Technology by November 1, 2008, and may be implemented after consultation with the Committee.
SECTION 6.14.(c) In preparing the Governor's proposed budget for the 2009‑2011 fiscal biennium, the Office of State Budget and Management shall utilize the plan required under subsection (b) of this section.
SECTION 6.14.(d) The University of North Carolina and its constituent institutions shall be added to the single statewide electronic mail system beginning January 1, 2010.
Criminal Justice Data Integration Pilot program
SECTION 6.15.(a) The General Assembly finds that the State's Uniform Crime Reporting technology is based on procedures developed in the 1930s and a design plan developed in the late 1980s. Based on recent unfortunate events, it is abundantly clear that the State must establish a framework for sharing critical information, and the framework must be implemented as soon as possible. With improved access to timely, complete, and accurate information, the members of the General Assembly, leadership in State and local law enforcement agencies, law enforcement officers, and everyone working in the criminal justice system can enhance their ability to make decisions on behalf of the people of the State, with fewer decisions based on instinct or guesswork.
The General Assembly further finds that the April 2008 Beacon Report on a Strategic Plan for Data Integration recommends the development and implementation of a Crime Reporting Re‑Design Project, a statewide crime analysis system designed to save time, save money, and save lives.
SECTION 6.15.(b) The Office of the State Controller, in cooperation with the State Chief Information Officer, and under the governance of the BEACON Project Steering Committee, shall by May 1, 2009, develop and implement a Criminal Justice Data Integration Pilot Program in Wake County in cooperation and communication with the advisory committee established pursuant to subsection (c) of this section and the leadership of State and local agencies. This pilot program shall integrate and provide up‑to‑date criminal information in a centralized location via a secure connection for use by State and local government.
While it is the intent that this initiative provide a broad new access to information across State government, the plan shall comply with all necessary security measures and restrictions to ensure that access to any specific information held confidential under federal and State law shall be limited to authorized persons.
SECTION 6.15.(c) The Advisory Committee to the Criminal Justice Data Integration Pilot program is hereby established. The Advisory Committee shall consist of the District Attorney for Prosecutorial District 10, who shall serve as chair, the senior resident superior court judge for Superior Court Districts 10A through 10D, a Wake County magistrate designated by the senior resident superior court judge, the Clerk of Superior Court of Wake County, the sheriff of Wake County, the judicial district manager for District 10 of the Division of Community Corrections, the chief court counselor for District Court District 10, the president of Duke University, the chancellor of the University of North Carolina at Chapel Hill, or their designees.
SECTION 6.15.(d) The Advisory Committee, the Department of Justice, the Administrative Office of the Courts, the Department of Juvenile Justice and Delinquency Prevention, the Department of Correction, the Department of Crime Control and Public Safety, the Department of Transportation, and local law enforcement agencies shall fully cooperate with the Office of the State Controller and the State Chief Information Officer, under the guidance of the BEACON Steering Committee, to identify the informational needs, develop a plan of action, provide access to data, and implement secure integrated applications for information sharing of criminal justice and corrections data.
SECTION 6.15.(e) Funds in the amount of five million dollars ($5,000,000) are appropriated to the Reserve for the Criminal Justice Data Integration Pilot to support the Criminal Justice Data Integration Pilot Program. Other funds available to BEACON may also be used for this purpose.
The Office of the State Controller, with the support of the Office of State Budget and Management, shall identify and make all efforts to secure any matching funds or other resources to assist in funding this initiative.
The BEACON Project Steering Committee shall use the State's software enterprise licensing agreements to establish a foundation for data warehousing and business analytics to implement the pilot program.
SECTION 6.15.(f) The provisions of Articles 3 and 3A of Chapter 143 of the General Statutes shall not apply to the development of this pilot program.
SECTION 6.15.(g) The Office of the State Controller, with the support of the Advisory Committee and the State Chief Information Officer, shall provide a written report of the plan's implementation progress to the Chairs of the House of Representatives Appropriations Committee, the Chairs of the Senate Committee on Appropriations/Base Budget, the Information Technology Committee, and the Fiscal Research Division on a quarterly basis beginning October 1, 2008.
SECTION 6.16.(a) The Office of the State Controller, in cooperation with the State Chief Information Officer, shall begin implementation of the Beacon Strategic Plan for Data Integration, issued in April 2008. This plan shall be implemented under the governance of the BEACON Project Steering Committee and in conjunction with leadership in appropriate State agencies and with the support and cooperation of the Office of State Budget and Management.
While it is the intent that this initiative provide broad access to information across State government, the plan shall comply with all necessary security measures and restrictions to ensure that access to any specific information held confidential under federal and State law shall be limited to appropriate and authorized persons.
SECTION 6.16.(b) The State Controller shall serve as the Chairman of the BEACON Project Steering Committee. The other members of the committee shall be the State Chief Information Officer, the State Treasurer, the Attorney General, the Secretary of Correction, the Administrative Officer of the Courts, the State Budget Officer, and the Chief Financial Officer of the Department of Transportation.
SECTION 6.16.(c) Of the funds appropriated from the General Fund to the North Carolina Information Technology Fund, the sum of five million dollars ($5,000,000) for the 2008‑2009 fiscal year shall be used for BEACON data integration as provided by subsection (a) of this section. Funds to support this activity shall also be the unexpended balance from the funds appropriated for BEACON/Data Integration Funds in Section 5.3(b) of S.L. 2007‑323. The Office of the State Controller, with the support of the Office of State Budget and Management, shall identify and make all efforts to secure any matching funds or other resources to assist in funding this initiative.
SECTION 6.16.(d) Funds authorized in this section may be used for the following purposes:
(1) To support the cost of a project manager to conduct the activities outlined herein reportable to the Office of the State Controller.
(2) To support two business analysts to provide support to the program manager and agencies in identifying requirements under this program.
(3) To establish a Business Intelligence Competency Center (BICC), a collaborative organization comprised of both technical and business stakeholders, to support and manage the business need for analytics through the development of standards and best practices.
(4) To engage a vendor to implement the Strategic Implementation Plan as required herein.
(5) To conduct integration activities as approved by the BEACON Project Steering Committee. The State Chief Information Officer shall use current enterprise licensing to implement these integration activities.
SECTION 6.16.(e) Prior to the convening of the 2009 General Assembly, the Office of the State Controller shall provide semiannual reports to the Joint Legislative Oversight Committee for Information Technology. Written reports shall be submitted not later than October 1, 2008, and April 1, 2009, with presentations of the reports at the first session of the Joint Legislative Oversight Committee on Information Technology following the written report submission date. The Joint Legislative Oversight Committee on Information Technology shall then report to the Joint Legislative Commission on Governmental Operations.
SECTION 6.16.(f) Neither the implementation of the Strategic Information Plan nor the provisions of this section shall place any new or additional requirements upon The University of North Carolina or the North Carolina Community College System.
PART VII. PUBLIC SCHOOLS
SECTION 7.1. The State Board of Education shall allocate funds for children with disabilities on the basis of three thousand three hundred eighty‑six dollars and eighty‑four cents ($3,386.84) per child for a maximum of 172,079 children for the 2008‑2009 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 2008‑2009 allocated average daily membership in the local school administrative unit.
The dollar amounts allocated under this section for children with disabilities shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities.
FUNDS FOR ACADEMICALLY GIFTED CHILDREN
SECTION 7.2. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of one thousand one hundred thirty‑seven dollars and nineteen cents ($1,137.19) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2008‑2009 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 59,063 children for the 2008‑2009 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.
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
(1) Incentive awards in schools that achieve higher than expected improvements may be:
a. Up to one thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Up to five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be:
a. Up to seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Up to three hundred seventy‑five dollars ($375.00) for each teacher assistant.
SECTION 7.3.(b) The State Board of Education may use funds appropriated to the State Public School Fund to implement the consolidated assistance program, as directed in Section 7.6(b) of S.L. 2006‑66. The Board shall report to the Joint Legislative Education Oversight Committee by January 15, 2009, on any restructuring of the program pursuant to this section.
NORTH CAROLINA VIRTUAL PUBLIC SCHOOL
SECTION 7.4.(a) Section 7.20(d) of S.L. 2007‑323 reads as rewritten:
"SECTION 7.20.(d) The
State Board of Education shall implement an allotment formula developed
pursuant to Section 7.16(d) of S.L. 2006‑66, for funding e‑learning,
effective in the 2008‑20092009‑2010 fiscal year.
NCVPS shall be available at no cost to all students in North Carolina who are
enrolled in North Carolina's public schools, Department of Defense schools, and
schools operated by the Bureau of Indian Affairs. The Department of Public
Instruction shall communicate to local school administrative units all
applicable guidelines regarding the enrollment of nonpublic school students in
these courses.
The State Board of Education shall report to the Joint Legislative Education Oversight Committee and the Fiscal Research Division by December 15, 2008, on its implementation of this section.
Funds appropriated for NCVPS shall not revert at the end of the 2007‑2008 fiscal year but shall remain available for expenditure in the 2008‑2009 fiscal year."
SECTION 7.4.(b) If the State Board of Education finds that it is appropriate to do so, the State Board may use funds appropriated for NCVPS to create up to 15 full‑time positions to support the continued implementation of NCVPS.
SECTION 7.4.(c) Subsection (a) of this section becomes effective June 30, 2008.
LEARN AND EARN ONLINE CARRYFORWARD
SECTION 7.5.(a) Funds appropriated for Learn and Earn Online that are unexpended or unencumbered at the end of each fiscal year shall not revert, but shall remain available for expenditure.
SECTION 7.5.(b) This section becomes effective June 30, 2008.
SCHOOL CONNECTIVITY INITIATIVE
SECTION 7.6.(a) Of the funds appropriated for the School Connectivity Initiative, up to three hundred thousand dollars ($300,000), may be transferred to the Friday Institute at North Carolina State University to evaluate the effectiveness of using technology and its impact on 21st Century Teaching and Learning outcomes approved by the State Board of Education. The Friday Institute shall report annually to the State Board of Education on the evaluation results.
SECTION 7.6.(b) Funds allocated to the School Connectivity Initiative shall carry forward to the next fiscal year until the project is fully implemented by June 30, 2010.
SECTION 7.6.(c) Subsection (b) of this section becomes effective June 30, 2008.
ALLOTMENT FOR MENTORING SERVICES
SECTION 7.8. The State Board of Education shall allot funds for mentoring services to local school administrative units based on the highest number of employees in the preceding three school years who (i) are paid with State, federal, or local funds and (ii) are either teachers paid on the first or second steps of the teacher salary schedule or instructional support personnel paid on the first step of the instructional support personnel salary schedule.
Local school administrative units shall use these funds to provide mentoring support to eligible employees in accordance with a plan approved by the State Board of Education. The plan shall include information on how all mentors in the local school administrative unit will be adequately trained to provide mentoring support.
DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING
SECTION 7.9. Section 7.8(c) of S.L. 2007‑323 reads as rewritten:
"SECTION 7.8.(c) Funds appropriated to a local school administrative unit for disadvantaged student supplemental funding shall be allotted based on: (i) the local school administrative unit's eligible DSSF population and (ii) the difference between a teacher‑to‑student ratio of 1:21 and the following teacher‑to‑student ratios:
(1) For counties with wealth
greater than ninety percent (90%) of the statewide average, a ratio of 1:20.0;19.9;
(2) For counties with wealth
not less than eighty percent (80%) and not greater than ninety percent (90%) of
the statewide average, a ratio of 1:19.5;1:19.41;
(3) For counties with wealth
less than eighty percent (80%) of the statewide average, a ratio of 1:19.3; 1:19.18;
and
(4) For LEAs receiving DSSF funds in 2005‑2006, a ratio of 1:16. These LEAs shall receive no less than the DSSF amount allotted in 2006‑2007.
For the purpose of this subsection, wealth shall be calculated under the low‑wealth supplemental formula."
MODIFY LOW‑WEALTH SCHOOL FUNDING FORMULA
SECTION 7.10.(a) Local school administrative units shall receive the same amount of funds for the 2008‑2009 fiscal year under the low‑wealth supplemental formula that they received for the 2007‑2008 fiscal year. This allotment shall be adjusted in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel enacted by the General Assembly for the 2007‑2008 fiscal year.
SECTION 7.10.(b) The provisions of Section 7.6 of S.L. 2007‑323 regarding the expenditure of funds shall apply to low‑wealth funds received for the 2008‑2009 fiscal year.
STUDY OF STUDENTS WITH DISABILITIES
SECTION 7.12. The Department of Public Instruction shall analyze the participation of students with disabilities in Learn and Earn Early College High Schools, Redesigned High Schools, the North Carolina Virtual Public School, and North Carolina public high schools that are on block schedules. In conducting its analysis, the Department shall consider enrollment, graduation, and dropout rates for students with disabilities in these different programs. The Department shall report its findings and any recommendations to the Joint Legislative Education Oversight Committee and the Committee on Dropout Prevention by March 15, 2009.
FOCUSED ED. REFORM PROG. FUNDS DO NOT REVERT
SECTION 7.13.(a) Funds appropriated for the Focused Education Reform Pilot Program that are unexpended and unencumbered at the end of each fiscal year shall not revert but shall remain available for expenditure for that purpose for the duration of the pilot program.
SECTION 7.13.(b) This section becomes effective June 30, 2008.
REESTABLISH COMMITTEE ON DROPOUT PREVENTION
SECTION 7.14.(a) Section 7.32(e) of S.L. 2007‑323 reads as rewritten:
"SECTION 7.32.(e)
Report. – The Committee shall report to the Joint Legislative Commission on
Dropout Prevention and High School Graduation created in subsection (f) of this
section by December 1, 2007, on the grants awarded under subsection (d) of this
section, after which time the Committee shall terminate.section. The
Committee shall terminate on December 31, 2010."
SECTION 7.14.(b) Committee. – The Committee on Dropout Prevention, as created in Section 7.32 of S.L. 2007‑323, is reestablished to determine which local school administrative units, schools, agencies, and nonprofits shall receive dropout prevention grants under this section, the amount of each grant, and eligible uses of the grant funding. When utilizing outside grant reviewers and raters, the Committee is encouraged to utilize individuals who represent public schools, universities, and community‑based organizations.
The Committee shall continue to be located administratively in the Department of Public Instruction but shall exercise its powers and duties independently of the Department of Public Instruction. The Department of Public Instruction shall provide for the administrative costs of the Committee. The Department of Public Instruction shall contract with an independent consultant to serve as staff to the Committee, to provide technical assistance to the grant recipients for the length of the grant, and to assist the Committee in evaluating the impact of the grants awarded.
The members of the Committee shall assure they are in compliance with laws and rules governing conflicts of interest. The Committee shall meet on the call of the cochairs provided that the Committee shall meet at least once every three months.
In the event of a vacancy on the Committee, the appointing authorities are encouraged to provide representation on the Committee from each of the eight educational districts as defined in G.S. 115C‑65.
SECTION 7.14.(c) Dropout Prevention Grants. – The Committee shall select grant recipients as follows:
(1) From applications received in the process outlined in Section 7.32(d) of S.L. 2007‑323 and using the process for the review of grant applications in 2007, the Committee shall establish a new cutoff score and award grants to applicants that both meet the new cutoff score and did not previously receive funding under S.L. 2007‑323. Priority for additional funding of grants awarded under S.L. 2007‑323 shall be given to programs that would serve students in local schools that have a four‑year cohort graduation rate of less than sixty‑five percent (65%).
(2) From the recipients of grants awarded under S.L. 2007‑323, the Committee shall establish a process to award additional funds to those grantees.
(3) Using the process outlined in Section 7.32(d) of S.L. 2007‑323 consistent with subsection (d) of this section, the Committee may award grants to new applicants that did not apply for funding under that act.
SECTION 7.14.(d) Criteria for Dropout Prevention Grants. – The following criteria apply to all types of dropout prevention grants approved by the Committee:
(1) Grants shall be issued in varying amounts up to a maximum of one hundred fifty thousand dollars ($150,000).
(2) These grants shall be provided to innovative programs and initiatives that target students at risk of dropping out of school and that demonstrate the potential to (i) be developed into effective, sustainable, and coordinated dropout prevention and reentry programs in middle schools and high schools and (ii) serve as effective models for other programs.
(3) Priority shall be given to new programs and initiatives or to those that have begun within the last five school years.
(4) Grants shall be distributed geographically throughout the State and throughout the eight educational districts as defined in G.S. 115C‑65. No more than three grants shall be awarded in any one county under this section in a single fiscal year.
(5) Grants may be made to local school administrative units, schools, local agencies, or nonprofit organizations.
(6) Grants shall be to programs and initiatives that hold all students to high academic and personal standards.
(7) Grant applications shall state (i) how grant funds will be used, (ii) what, if any, other resources will be used in conjunction with the grant funds, (iii) how the program or initiative will be coordinated to enhance the effectiveness of existing programs, initiatives, or services in the community, and (iv) a process for evaluating the success of the program or initiative.
(8) Programs and initiatives that receive grants under this section shall be based on best practices for helping at‑risk students achieve successful academic progress, preventing students from dropping out of school, or for increasing the high school completion rate for those students who already have dropped out of school.
(9) Priority for grants shall be given to proposals that demonstrate input from the local community and coordination with other available programs or resources.
(10) Grantees shall assure their compliance with applicable laws and rules regulating conflicts of interest.
(11) Priority for grants shall be given to programs that would serve students in local schools that have a four‑year cohort graduation rate of less than sixty‑five percent (65%) and that are from counties that did not receive funding under S.L. 2007‑323. The Committee shall establish a grant rating cutoff score at such a level as to allow for consideration of all viable grants in this priority category. The Committee may require grantees to provide supplemental information in response to any prior reviewer comments.
(12) Grants shall be made no later than November 1, 2008.
The Committee shall report to the Joint Legislative Commission on Dropout Prevention and High School Graduation and the Joint Legislative Education Oversight Committee on the grants awarded under this section by March 1, 2009.
SECTION 7.14.(e) Evaluation. – The Committee shall evaluate the impact of the dropout prevention grants awarded under S.L. 2007‑323 and under this section. In evaluating the impact of the grants, the Committee shall consider:
(1) How grant funds were used, including the services provided for teen pregnancy prevention and for pregnant and parenting teens;
(2) The success of the program or initiative, as indicated by the evaluation process stated in its grant application;
(3) The extent to which the program or initiative has improved students' attendance, test scores, persistence, and graduation rates;
(4) How the program or initiative was coordinated to enhance the effectiveness of existing programs, initiatives, or services in the community;
(5) What, if any, other resources were used in conjunction with the grant funds;
(6) The sustainability of the program;
(7) The number, gender, ethnicity, and grade level of students being served as well as whether the student left school due to pregnancy or parenting responsibilities;
(8) The potential for the program to serve as a model for achieving successful academic progress for at‑risk students; and
(9) Other indicators of the impact of the grant on dropout prevention.
The recipients of the dropout prevention grants awarded under S.L. 2007‑323 shall report to the Committee on Dropout Prevention by January 31, 2009, and by September 30, 2009. The Committee shall make an interim report of the results of its evaluation of the grants awarded under S.L. 2007‑323 by March 31, 2009, to the Joint Legislative Commission on Dropout Prevention and High School Graduation and to the Joint Legislative Education Oversight Committee. The Committee shall make a final report of the results of its evaluation of the grants awarded under S.L. 2007‑323 by November 15, 2009, to the Joint Legislative Commission on Dropout Prevention and High School Graduation and to the Joint Legislative Education Oversight Committee.
The recipients of the dropout prevention grants awarded under this section shall report to the Committee on Dropout Prevention by January 31, 2010, and by September 30, 2010. The Committee shall make an interim report of the results of its evaluation of the grants awarded under this section by March 31, 2010, to the Joint Legislative Commission on Dropout Prevention and High School Graduation and to the Joint Legislative Education Oversight Committee. The Committee shall make a final report of the results of its evaluation of the grants awarded under subsection (c) of this section by November 15, 2010, to the Joint Legislative Commission on Dropout Prevention and High School Graduation and to the Joint Legislative Education Oversight Committee.
SECTION 7.14.(f) Dropout Prevention Network. – In addition to its other duties, the Joint Legislative Commission on Dropout Prevention and High School Graduation, established under Section 7.32 of S.L. 2007‑323, shall study the development of an effective network for the purpose of sharing best practices among the grant recipients, the public schools, and other interested organizations. The Commission shall consider interactive Web sites, electronic information sharing, professional development opportunities, conferences, and other means that it believes would be effective. The Commission may consult with the Department of Public Instruction and the Committee on Dropout Prevention. The Commission shall report its findings and any recommendations to the 2009 General Assembly.
SECTION 7.14.(g) Funds appropriated for the dropout prevention grants for the 2007‑2008 fiscal year shall not revert but shall remain available for expenditure until August 31, 2009. Funds appropriated for the 2008‑2009 fiscal year shall not revert but shall remain available for expenditure until August 31, 2010.
SECTION 7.14.(h) Of the funds appropriated for the dropout prevention grants, the sum of one hundred thousand dollars ($100,000) for the 2008‑2009 fiscal year may be used to issue a request for proposals from qualified vendors on a competitive basis to contract as a consultant to assist with the evaluation. The factors to be considered in awarding the contract shall be identified in the request for proposals.
SECTION 7.14.(i) Of the funds appropriated for the dropout prevention grants, the Department of Public Instruction may use up to fifty thousand dollars ($50,000) for its administrative assistance to the Committee and provide technical assistance under this section.
SECTION 7.14.(j) Subsection (g) of this section becomes effective June 30, 2008.
DROPOUT PREVENTION TECHNICAL CORRECTION
SECTION 7.14A. Section 7.32(c) of S.L. 2007‑323 reads as rewritten:
"SECTION 7.32.(c) Committee. – There is established the Committee on Dropout Prevention. The Committee shall be located administratively in the Department of Public Instruction but shall exercise its powers and duties independently of the Department of Public Instruction. The Department of Public Instruction shall provide for the administrative costs of the Committee and shall provide staff to the Committee.
The Committee shall determine which local school administrative units, schools, agencies, and nonprofits shall receive dropout prevention grants under subsection (d) of this section, the amount of each grant, and eligible uses of the grant funding. The Committee shall consist of the following 15 members:
(1) The Governor shall appoint five members, of whom one is a superintendent of schools, one is a representative of a nonprofit, and one is a school social worker;
(2) The General Assembly upon the recommendation of the President Pro Tempore of the Senate shall appoint five members, of whom one is a principal, one is a representative of a school of education, and one is a school counselor; and
(3) The General Assembly upon the recommendation of the Speaker of the House of Representatives shall appoint five members, of whom one is a teacher, one is a member of the business community, and one is a representative of the juvenile justice system.
The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Committee. The members of the Committee shall assure they are in compliance with laws and rules governing conflicts of interest."
USE OF LEARN AND EARN ONLINE FOR hybrid courses
SECTION 7.15. Local school administrative units may use funds appropriated for Learn and Earn Online for college‑level courses taught by university instructors at public schools. Instruction for these courses shall be partially delivered online. Payments related to the textbooks and the prorated cost of the instructor shall be paid to the university supplying the instruction.
The State Board of Education shall adopt policies to establish guidelines and reimbursement procedures.
COMPREHENSIVE SUPPORT FOR SCHOOL SYSTEMS AND SCHOOLS
SECTION 7.16. If a local school administrative unit is designated by the State Board of Education as a targeted school district for comprehensive support, the State Board may:
(1) Authorize additional flexibility with regard to State allotments to allow the State Board's assigned support team and the local school administrative unit's leadership to redirect State funding to address the identified reform requirements. This additional flexibility shall not increase overall State funding available to the unit.
(2) Use funds already appropriated to the State Board of Education to allocate time‑limited funds to implement strategies identified by the State Board's assigned support team and the school unit's leadership. The State Board shall adopt policies regarding (i) the strategies for which these time‑limited funds may be used and (ii) the maximum time a unit may receive these funds. This funding shall not be allotted for more than one fiscal year. This funding is intended to allow the implementation of necessary reform initiatives while the unit obtains local funding or identifies other State or federal funding to cover the initiatives.
SECTION 7.17.(a) Section 7.24(f) of S.L. 2007‑323 reads as rewritten:
"SECTION 7.24.(f) If
a county is unable to increase "More at Four" slots because of a
documented lack of available resources necessary to provide the required local
contribution for the additional slots allocated to the county for the 2007‑2008
fiscal year, year or the 2008‑2009 fiscal year, the
contract agency for that county may appeal to the Office of School Readiness
for an exception to the required local amount for those additional slots. The
Office of School Readiness may grant an exception and allot funds to pay up to
ninety percent (90%) of the full cost of the additional slots for that county
if it finds that (i) there is in fact a documented lack of available resources
in the county and (ii) granting the exception will not reduce access statewide
to "More at Four" slots."
SECTION 7.17.(b) The Office of School Readiness shall develop a plan to tier the local More at Four slots that are in child care facilities, based on child care subsidy market rates. The Office of School Readiness shall report the plan to the House of Representatives Appropriations Subcommittee on Education, the Senate Appropriations Committee on Education, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Education Oversight Committee, and the Fiscal Research Division by January 1, 2009.
SECTION 7.17.(c) Section 7.24.(a)(11) of S.L. 2007-323 reads as rewritten:
"SECTION 7.24.(a) The Department of Public Instruction shall continue the implementation of the "More at Four" prekindergarten program for at‑risk four‑year‑olds who are at risk of failure in kindergarten. The program is available statewide to all counties that choose to participate, including underserved areas. The goal of the program is to provide quality prekindergarten services to a greater number of at‑risk children in order to enhance kindergarten readiness for these children. The program shall be consistent with standards and assessments established jointly by the Department of Health and Human Services and the Department of Public Instruction. The program shall include:
…
(11) A system of accountability.accountability
to include a yearly review. The Department shall contract with an independent
research organization not affiliated with the Department of Health and Human
Services, the Department of Public Instruction, the Office of the Governor, or
any entity currently funded by or affiliated with the Department of Health and
Human Services, the Department of Public Instruction, or the Office of the
Governor to produce an annual report to include longitudinal review of the
program and academic, behavioral, and other child-specific outcomes. The review
shall include a quasi experimental research design of a representative sample
of children who complete the More at Four program every year and shall report
on their sustained progress until the end of grade 9. The review shall also
study a representative sample of children who do not enter the More at Four
program but who are of the same grade level and demographic as those who
complete the program and their sustained progress shall also be reviewed until
the end of grade 9. The review shall be presented to the Joint Legislative
Oversight Committee on Education by January 31 of every year."
SECTION 7.18.(a) G.S. 115C‑546.2 reads as rewritten:
"(a) Monies Of
the monies credited to the Fund by the Secretary of Revenue pursuant to G.S. 115C‑546.1(b),
the State Board of Education may allocate up to one million dollars ($1,000,000)
each year to the Department of Public Instruction. These funds shall be used by
the Plant Operation Section of the School Support Division to assist each local
school administrative unit with effective energy and environmental management,
effective water management, hazardous material management, clean air quality,
and engineering support for safe, effective environmental practices. The
remainder of the monies in the Fund shall be allocated to the counties on a
per average daily membership basis according to the average daily membership
for the budget year as determined and certified by the State Board of
Education. Interest earned on funds allocated to each county shall be allocated
to that county."
SECTION 7.18.(b) The Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee by April 15 of each year on the effectiveness of the program in accomplishing its purpose and on any other information requested by the Committee.
allotments of TEACHERS FOR small SCHOOLS
SECTION 7.20. The State Board of Education shall modify its policy on the allotment of funds for small schools by:
(1) Defining small schools to include schools of fewer than 110 students; and
(2) Giving consideration to small, geographically isolated schools over other qualifying programs and schools.
MATH AND SCIENCE TEACHERS PILOT PROGRAM modified
SECTION 7.21. The pilot program providing for salary supplements for newly hired mathematics or science teachers is modified to permit both highly qualified and newly hired teachers in the pilot units to qualify to receive salary supplements.
report to parents regarding low funding effort
SECTION 7.22. G.S. 115C‑12 is amended by adding a new subdivision to read:
"§ 115C‑12. Powers and duties of the Board generally.
The general supervision and administration of the free public school system shall be vested in the State Board of Education. The State Board of Education shall establish policy for the system of free public schools, subject to laws enacted by the General Assembly. The powers and duties of the State Board of Education are defined as follows:
…
(35) Duty to Notify Parents of Their County's Low Effort to Fund Schools. – The State Board of Education shall identify the 10 counties that provide the lowest funding per student for the public schools and shall prepare a letter to parents of schoolchildren in each of those counties indicating (i) the amount per student their county is providing and the impact of that funding on public school services, (ii) the amount per student other counties are providing and the potential impact of that additional funding on public school services in their county, and (iii) the relative amount of their county's commitment to funding public schools in light of their ability to pay. The board of county commissioners shall forward the letter to all parents of schoolchildren in the county."
increases in student population due to brac activity
SECTION 7.23. If a local school administrative unit employs more classroom teachers than are allotted to it due to a projected increase in student population resulting from BRAC activity, the State Board shall allot additional teachers to the unit based on the greater of (i) the local school administrative unit's first month average daily membership (ADM) or (ii) seventy‑five percent (75%) of the projected increase in ADM resulting from BRAC activity that is in excess of the increase anticipated in the allotted ADM.
The Department of Public Instruction shall notify each impacted local school administrative unit as to the BRAC population increase in excess of allotted average daily membership on or before the distribution of the initial allotments.
Section 7.15(b) of S.L. 2007‑323 does not apply to local school administrative units receiving an additional allotment of teachers pursuant to this section.
PART VIII. COMMUNITY COLLEGES
REORGANIZATION OF THE NORTH CAROLINA COMMUNITY COLLEGES SYSTEM OFFICE
SECTION 8.1.(a) Notwithstanding any other provision of law, and consistent with the authority established in G.S. 115D‑3, the President of the North Carolina Community College System may reorganize the System Office in accordance with recommendations and plans submitted to and approved by the State Board of Community Colleges.
SECTION 8.1.(b) This section expires June 30, 2009.
USE OF FUNDS FOR THE COLLEGE INFORMATION SYSTEM
SECTION 8.2.(a) Funds appropriated in this act to the Community Colleges System Office for the College Information System shall not revert at the end of the 2008‑2009 fiscal year but shall remain available until expended. These funds may only be used to purchase periodic system upgrades.
SECTION 8.2.(b) Notwithstanding G.S. 143C‑6‑4, the Community Colleges System Office may, subject to the approval of the Office of State Budget and Management and in consultation with the Office of Information Technology Services, use funds appropriated in this act for the College Information System to create a maximum of three positions. Personnel positions created pursuant to this subsection shall be dedicated to maintaining and administering information technology and software upgrades to the College Information System.
SECTION 8.2.(c) The Community Colleges System Office shall report by January 1, 2009, to the Joint Legislative Education Oversight Committee on the transition from the implementation phase to the ongoing operations and maintenance phase of the College Information System Project.
REPORT ON EFFECT OF ADDITIONAL ALLIED HEALTH FUNDING
SECTION 8.3. The Community Colleges System Office shall report by March 1, 2009, to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management regarding the impact of the additional funding received for nursing and allied health programs during the 2006‑2007, 2007‑2008, and 2008‑2009 fiscal years. This report shall include, at a minimum:
(1) The number of FTE students enrolled in these programs;
(2) The number of qualified applicants who were not admitted due to program capacity constraints;
(3) The performance of students on nursing licensure exams; and
(4) The average salary for allied health faculty by education level.
REPORT ON COST OF ALL PROGRAMS
SECTION 8.4. The Community Colleges System Office shall report by May 15, 2009, to the Fiscal Research Division and the Office of State Budget and Management regarding the instructional cost of all curriculum and non‑curriculum programs. This report shall include an explanation of the differences in costs between programs, including faculty salaries and equipment costs.
MINORITY MALE MENTORING PROGRAM FUNDS
SECTION 8.5.(a) One hundred thousand dollars ($100,000) of the funds appropriated for the Minority Male Mentoring Program shall not revert at the end of the fiscal year but shall remain available until expended. The State Board of Community Colleges may use these funds to recruit minority male students to community colleges, market the 15 pilot programs statewide, and contract for summer enrichment programs for program participants.
SECTION 8.5.(b) This section becomes effective June 30, 2008.
SECTION 8.6.(a) Funds reimbursed to the Community College System for full‑time equivalent (FTE) students participating in learn and earn online courses shall not revert at the end of a fiscal year, but shall remain available for expenditure up to 12 months after the close of a fiscal year.
SECTION 8.6.(b) This section becomes effective June 30, 2008.
CONSOLIDATE WORKFORCE DEVELOPMENT PROGRAMS
SECTION 8.7.(a) G.S. 115D‑5.1 reads as rewritten:
"§ 115D‑5.1. Workforce Development Programs.
(a) Community colleges shall assist in the preemployment and in‑service training of employees in industry, business, agriculture, health occupation and governmental agencies. Such training shall include instruction on worker safety and health standards and practices applicable to the field of employment. The State Board of Community Colleges shall make appropriate regulations including the establishment of maximum hours of instruction which may be offered at State expense in each in‑plant training program. No instructor or other employee of a community college shall engage in the normal management, supervisory and operational functions of the establishment in which the instruction is offered during the hours in which the instructor or other employee is employed for instructional or educational purposes.
(b) The North
Carolina Community College System's New and Expanding Industry Training (NEIT)
Program Guidelines, which were adopted by the State Board of Community Colleges
on April 18, 1997, apply to all funds appropriated for the Program after June
30, 1997. A project approved as an exception under these Guidelines, or these
Guidelines as modified by the State Board of Community Colleges, shall be
approved for one year only.
(b1) Notwithstanding
any other provision of law, the State Board of Community Colleges may adopt
rules and guidelines that allow the New and Expanding Industry Training Program
and the Focused Industrial Training Program to use funds appropriated for those
programs to support training projects for the various branches of the United
States Armed Forces.
(c) The State
Board of Community Colleges shall report to the Joint Legislative Education
Oversight Committee on September 1 of each year on expenditures for the New and
Expanding Industry Training Program each fiscal year. The report shall include,
for each company or individual that receives funds for the New and Expanding
Industry Training Program:
(1) The total
amount of funds received by the company or individual;
(2) The amount of
funds per trainee received by the company or individual;
(3) The amount of
funds received per trainee by the community college training the trainee;
(4) The number of
trainees trained by company and by community college; and
(5) The number of
years the companies or individuals have been funded.
(d) Funds
available to the New and Expanding Industry Training Program shall not revert
at the end of a fiscal year but shall remain available until expended.
(e) There is created within
the North Carolina Community College System the Customized Industry Training
(CIT) Program. The CIT Customized Training Program shall
offer programs and training services as new options for assistingto
assist new and existing business and industry to remain productive,
profitable, and within the State. Before a business or industry qualifies to
receive assistance under the CIT Customized Training Program, the
President of the North Carolina Community College System shall determine that:
(1) The business is making an appreciable capital investment;
(2) The business is deploying
new technology; and
(2a) The business or individual is creating jobs, expanding an existing workforce, or enhancing the productivity and profitability of the operations within the State; and
(3) The skills of the workers will be enhanced by the assistance.
(f) The State Board shall report on an annual basis to the Joint Legislative Education Oversight Committee on:
(1) The total amount of funds received by a company under the CIT Program;
(2) The amount of funds per trainee received by that company;
(3) The amount of funds received per trainee by the community college delivering the training;
(4) The number of trainees trained by the company and community college; and
(5) The number of years that company has been funded.
(f1) Notwithstanding any other provision of law, the State Board of Community Colleges may adopt rules and guidelines that allow the Customized Training Program and the Focused Industrial Training Program to use funds appropriated for those programs to support training projects for the various branches of the United States Armed Forces.
(f2) Funds available to the Customized Training Program shall not revert at the end of a fiscal year but shall remain available until expended. Up to ten percent (10%) of the college‑delivered training expenditures and up to five percent (5%) of the contractor‑delivered training expenditures for the prior fiscal year for Customized Training may be allotted to each college for capacity building at that college.
(f3) Of the funds appropriated in a fiscal year for the Customized Training Programs, the State Board of Community Colleges may approve the use of up to eight percent (8%) for the training and support of regional community college personnel to deliver Customized Industry Training Program services to business and industry.
(g) The State Board shall adopt rules and policies to implement this section."
SECTION 8.7.(b) The State Board of Community Colleges shall transfer funds appropriated for the New and Expanding Industry Training Program and the Focused Industrial Training Program to the Customized Industry Training Programs appropriation. This transfer shall be completed by September 1, 2008.
SECTION 8.8. The Community Colleges System Office shall develop a new formula for the Basic Skills Block Grant for consideration during the 2009 Session of the General Assembly. The revised formula shall incorporate the following changes:
(1) Federal funds shall be distributed to both community‑based organizations and community colleges using the same process and shall only be awarded to programs that meet minimum standards; and
(2) A larger amount of funding shall be distributed on the basis of performance using revised criteria.
(3) The formula shall not include funding for members of target populations who do not receive basic skills services.
TRANSFERS OF CASH BALANCES TO THE GENERAL FUND
SECTION 8.9.(a) Notwithstanding any other provision of law, four million five hundred thousand dollars ($4,500,000) of the cash balance remaining in the North Carolina Community College System Information Technology CIS Fund (Budget Code 26802, Fund 2201) on July 1, 2008, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers). These funds shall be used to support the General Fund appropriations for the 2008‑2009 fiscal year for expansion funding for the North Carolina Community College System.
SECTION 8.9.(b) Notwithstanding any other provision of law, seven hundred eighty‑three thousand two hundred forty‑six dollars ($783,246) of the cash balance remaining in the Focused Industrial Training (FIT) programs (Budget Code 16800, Fund 1603) on July 1, 2008, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers). These funds shall be used to support the General Fund appropriations for the 2008‑2009 fiscal year for expansion funding for the North Carolina Community College System.
SECTION 8.10. Notwithstanding G.S. 115D‑32 or any other provision of law, a community college may use up to two percent (2%) of the noninstructional State funds allocated to it in the institutional support allotment for the 2008‑2009 fiscal year for campus security. This may include the hiring of personnel, contracted professional services, surveillance cameras, call boxes, alert systems, and other equipment‑related expenditures.
These funds shall be used to supplement and shall not be used to supplant existing local funding for campus security.
CLARIFY USE OF FEES COLLECTED FOR GED TESTING
SECTION 8.11. G.S. 115C‑5 is amended by adding a new subsection to read:
"(s) The State Board of Community Colleges may retain and budget fees charged to students taking the General Education Development (GED) test. Fees collected for this purpose shall be used only to (i) offset the costs of the GED test, including the cost of scoring the test, (ii) offset the course of printing GED certificates, and (iii) meet federal and State reporting requirements related to the test."
CARRYFORWARD OF NORTH CAROLINA RESEARCH CAMPUS BIOTECHNOLOGY TRAINING FUNDS
SECTION 8.12.(a) Funds appropriated in S.L. 2006‑66 and S.L. 2007‑323 for the Rowan‑Cabarrus Community College Biotechnology Training Center and Greenhouse at the North Carolina Research Campus in Kannapolis shall not revert, but shall remain available until expended.
SECTION 8.12.(b) This section becomes effective June 30, 2008.
SECTION 8.13. 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 instructional technology for literacy labs. This technology may include computers, instructional software and software licenses, scanners for testing, and classroom projection equipment.
SURRY COMMUNITY COLLEGE VITICULTURE & ENOLOGY CENTER FUNDS
SECTION 8.14.(a) Funds appropriated for the 2007‑2008 fiscal year to the Community Colleges System Office for the operations of the North Carolina Viticulture and Enology Center located at Surry Community College shall not revert at the end of the fiscal year. Surry Community College may use these funds for capital construction for the Center.
SECTION 8.14.(b) This section becomes effective June 30, 2008.
STUDY OF CHANGES NECESSARY TO IMPROVE FINANCIAL AID TO COMMUNITY COLLEGE STUDENTS
SECTION 8.15. The Joint Legislative Education Oversight Committee shall study the changes necessary to improve financial aid for community college students. Specifically the study shall include recommendations on how to better serve nontraditional students and how to increase the number of community colleges that participate in federal student loan programs.
SECTION 8.16. Funds appropriated to the Community Colleges System Office for the Hosiery Technology Center at Catawba Valley Community College may be expended for the Center for Emerging Manufacturing Solutions (CEMS), which was established by Catawba Valley Community College in February 2008. The Hosiery Technology Center is now a division with the CEMS.
No Fees for First Aid Courses taken by School Employees
SECTION 8.17. G.S. 115D‑5(b) reads as rewritten:
"(b) In order to make
instruction as accessible as possible to all citizens, the teaching of
curricular courses and of noncurricular extension courses at convenient locations
away from institution campuses as well as on campuses is authorized and shall
be encouraged. A pro rata portion of the established regular tuition rate
charged a full‑time student shall be charged a part‑time student
taking any curriculum course. In lieu of any tuition charge, the State Board of
Community Colleges shall establish a uniform registration fee, or a schedule of
uniform registration fees, to be charged students enrolling in extension
courses for which instruction is financed primarily from State funds; provided,
however, that the State Board of Community Colleges may provide by general and
uniform regulations for waiver of tuition and registration fees for persons not
enrolled in elementary or secondary schools taking courses leading to a high
school diploma or equivalent certificate, for training courses for volunteer
firemen, local fire department personnel, volunteer rescue and lifesaving
department personnel, local rescue and lifesaving department personnel, Radio
Emergency Associated Citizens Team (REACT) members when the REACT team is under
contract to a county as an emergency response agency, local law‑enforcement
officers, patients in State alcoholic rehabilitation centers, all full‑time
custodial employees of the Department of Correction, employees of the
Department's Division of Community Corrections and employees of the Department
of Juvenile Justice and Delinquency Prevention required to be certified under
Chapter 17C of the General Statutes and the rules of the Criminal Justice and Training
Standards Commission, trainees enrolled in courses conducted under the New and
Expanding Industry Program, clients of sheltered workshops, clients of adult
developmental activity programs, students in Health and Human Services
Development Programs, juveniles of any age committed to the Department of
Juvenile Justice and Delinquency Prevention by a court of competent
jurisdiction, prison inmates, andmembers of the North Carolina State
Defense Militia as defined in G.S. 127A‑5 and as administered under
Article 5 of Chapter 127A of the General Statutes.Statutes, and elementary
and secondary school employees enrolled in courses in first aid or cardiopulmonary
resuscitation (CPR). Provided further, tuition shall be waived for senior
citizens attending institutions operating under this Chapter as set forth in
Chapter 115B of the General Statutes, Tuition Waiver for Senior Citizens.
Provided further, tuition shall also be waived for all courses taken by high
school students at community colleges, including students in early college and
middle college high school programs, in accordance with G.S. 115D‑20(4)
and this section."
students in the gateway to college program may enroll in developmental courses
SECTION 8.18. G.S. 115D‑5 is amended by adding a new subsection to read:
"(s) The purpose of the first semester of the Gateway to College Program is to address additional support to successfully complete the program. Students may need to take developmental courses necessary for the transition to more challenging courses; therefore, the State Board of Community Colleges shall (i) permit high school students who are enrolled in Gateway to College Programs to enroll in developmental courses based on an assessment of their individual student needs by a high school and community college staff team and (ii) include this coursework in computing the budget FTE for the colleges."
use of funds for isothermal community college
SECTION 8.19.(a) Funds appropriated by the 2005 General Assembly as a grant‑in‑aid for Isothermal Community College for a capital project shall remain available to the college and may be used for another capital project at the college.
SECTION 8.19.(b) This section becomes effective June 30, 2008.
PART IX. UNIVERSITIES
ELIMINATE COACHING SCHOLARSHIP LOAN PROGRAM/TRANSFER FUND BALANCE TO GENERAL FUND
SECTION 9.1.(a) G.S. 116‑209.36 is repealed.
SECTION 9.1.(b) All financial obligations to any student awarded a scholarship loan from the Coaching Scholarship Loan Fund before July 1, 2008, shall be fulfilled provided the student remains eligible under the provisions of the Coaching Scholarship Loan Fund. All contractual agreements between a student awarded a scholarship loan from the Coaching Scholarship Loan Fund before July 1, 2008, and the State Education Assistance Authority remain enforceable and the provisions of G.S. 116‑209.36 that would be applicable but for this section shall remain applicable with regard to any scholarship loan awarded before July 1, 2008.
SECTION 9.1.(c) Effective June 30, 2008, the unencumbered balance of funds in the Coaching Scholarship Loan Fund shall revert to the General Fund.
USE OF ESCHEAT FUNDS FOR CERTAIN EARN SCHOLARSHIPS
SECTION 9.2.(a) Section 9.7(b) of S.L. 2007‑323 reads as rewritten:
"SECTION 9.7.(b) There
is appropriated from the General Fund to the State Education Assistance
Authority the sum of twenty‑seven million six hundred five thousand two
hundred ten dollars ($27,605,210) for the 2007‑2008 fiscal year and the
sum of sixty million dollars ($60,000,000) ten million dollars
($10,000,000) for the 2008‑2009 fiscal year."
SECTION 9.2.(b) Section 9.7(c) of S.L. 2007‑323 reads as rewritten:
"SECTION 9.7.(c)
There is appropriated from the Escheat Fund to the State Education Assistance
Authority the sum of forty million dollars ($40,000,000) fifty
million dollars ($50,000,000) for the 2008‑2009 fiscal year.
Notwithstanding any other provision of law, no funds shall be used from the
Escheat Fund until all monies from the General Fund appropriated under Section
9.7(c) have been exhausted."
CLOSING THE ACHIEVEMENT GAP/GRANTS
SECTION 9.3.(a) Of the funds appropriated by this act for the 2008‑2009 fiscal year to the Board of Governors of The University of North Carolina to be used for the North Carolina Historically Minority Colleges and Universities initiative for "Closing the Achievement Gap," North Carolina Central University may use up to fifteen percent (15%) of the funds to cover the costs for administering the grants and shall award at least eighty‑five percent (85%) of the funds as grants to participating public and private institutions of higher education identified as historically minority colleges and universities. These funds shall be used to develop and implement after‑school programs designed to close the academic achievement gap and to improve the academic performance of youth at risk of academic failure and school dropout. A grant recipient under this section may also allocate the grant funds to a community‑based organization that is located in close proximity to the grant recipient for the purposes stated in this section.
SECTION 9.3.(b) North Carolina Central University shall report to the Joint Education Legislative Oversight Committee and to the Fiscal Research Division by April 1, 2009, regarding the number of grants awarded, the recipients of the grants, the amount of the grant awarded, the programs and purposes for which the grant was awarded, the cost of administering the grant, and any other information requested by the Committee or Fiscal Research Division. The grants awarded pursuant to this section shall also include as a term of the grant that the recipient of the grant report to the Joint Legislative Education Oversight Committee and to the Fiscal Research Division regarding the amount of the grant received, the program and purposes for which the grant was requested, the methodology used to implement the grant program and purposes, the results of the program funded by the grant, and any other information requested by the Joint Legislative Education Oversight Committee and the Fiscal Research Division.
OPTIONAL SCHOLARSHIP FOR CERTAIN GRADUATES OF THE PRINCIPAL FELLOWS PROGRAM
SECTION 9.4.(a) The North Carolina Principal Fellows Commission in collaboration with the State Education Assistance Authority shall make available an optional six‑month scholarship in the amount of twenty thousand dollars ($20,000) to any person who was a recipient of a scholarship loan through the Principal Fellows Program and who: (i) was in Class 10 of the Principal Fellows Program for the 2003‑2004 academic year, (ii) completed the Principal Fellows Program, and (iii) has either served as a school administrator for four years at a North Carolina public school or at a school operated by the United States as required by G.S. 116‑74.43, or who has had the loan forgiven by the State Education Assistance Authority pursuant to G.S. 116‑74.43. A person may be eligible for the optional six‑month scholarship only after fulfilling all contractual obligations agreed to by the person upon receipt of the original scholarship loan awarded to the person under G.S. 116‑74.42. Exclusive of any deferment for extenuating circumstances, a person remains eligible for the optional six‑month scholarship for two years after the six‑year period of time allowed the person to satisfy the original scholarship loan requirements under G.S. 116‑74.43. Should a person present extenuating circumstances, the State Education Assistance Authority may extend the period of time for which a person remains eligible for the optional six‑month scholarship for a reasonable time period.
SECTION 9.4.(b) The Principal Fellows Commission shall develop the criteria for awarding the scholarship. In developing the criteria, the Commission shall require that the person agree to work at least another six months as a school administrator in a North Carolina public school or at a school operated by the United States after satisfying the four‑year work requirement set out in G.S. 116‑74.43. The Commission, in collaboration with the State Education Assistance Authority, shall develop a process for evaluating a scholarship recipient's work performance and for issuing a final approval and certification of the work performance. The Commission shall transfer to the State Education Assistance Authority the name of each recipient that it certifies as successfully completing the optional scholarship program. The State Education Assistance Authority shall pay the twenty thousand dollar ($20,000) stipend to the scholarship recipient within a reasonable time of receiving notification from the Commission that the recipient has successfully completed the optional scholarship program. The State Education Assistance Authority shall perform all of the administrative functions necessary to implement this act, including rule making.
SECTION 9.4.(c) Effective June 30, 2008, the sum of one million dollars ($1,000,000) shall revert from the Principal Fellows Trust Fund to the General Fund. The sum of one million seven hundred forty thousand dollars ($1,740,000) in the Principal Fellows Trust Fund shall be held in reserve to pay each participant in the optional scholarship program the stipend of twenty thousand dollars ($20,000) upon successful completion of the optional scholarship program.
UNC ENROLLMENT GROWTH REQUEST TO CONTAIN PREVIOUS ACADEMIC YEAR'S ACTUAL STUDENT CREDIT HOURS (SCH) AND FULL TIME EQUIVALENCIES (FTE)
SECTION 9.8. G.S. 116‑11(9) reads as rewritten:
"(9) a. The Board of Governors shall develop, prepare and present to the Governor and the General Assembly a single, unified recommended budget for all of the constituent institutions of The University of North Carolina. The recommendations shall consist of requests in three general categories: (i) funds for the continuing operation of each constituent institution, (ii) funds for salary increases for employees exempt from the State Personnel Act and (iii) funds requested without reference to constituent institutions, itemized as to priority and covering such areas as new programs and activities, expansions of programs and activities, increases in enrollments, increases to accommodate internal shifts and categories of persons served, capital improvements, improvements in levels of operation and increases to remedy deficiencies, as well as other areas. The president may present to the General Assembly an updated estimate of tuition, fees, and other receipts by June 15 of each year to be included in the budget for the following fiscal year.
a1. The Board of Governors shall provide full documentation and justification of any enrollment change funding request at the time it is recommended. This documentation and justification shall include the most recent academic year's actual enrollment numbers in the same format in which the growth increase request is made. The actual enrollment numbers shall be the actual student credit hours (SCH) or full‑time equivalencies (FTE).
b. Funds for the continuing operation of each constituent institution shall be appropriated directly to the institution. Funds for salary increases for employees exempt from the State Personnel Act shall be appropriated to the Board in a lump sum for allocation to the institutions. Funds for the third category in paragraph a of this subdivision shall be appropriated to the Board in a lump sum for allocation to the institutions. The Board shall make allocations among the institutions in accordance with the Board's schedule of priorities and any specifications in the Current Operations Appropriations Act. When both the Board and the Director of the Budget deem it to be in the best interest of the State, funds in the third category may be allocated, in whole or in part, for other items within the list of priorities or for items not included in the list. Provided, nothing herein shall be construed to allow the General Assembly, except as to capital improvements, to refer to particular constituent institutions in any specifications as to priorities in the third category.
c. The Director of the Budget may, on recommendation of the Board, authorize transfer of appropriated funds from one institution to another to provide adjustments for over or under enrollment or may make any other adjustments among institutions that would provide for the orderly and efficient operation of the institutions.
d. Repealed by Session Laws 1987, c. 795, s. 27."
REVERT THE 2007‑2008 APPROPRIATION FOR THE EDUCATION ACCESS REWARDS NORTH CAROLINA (EARN) SCHOLARS FUND
SECTION 9.9. Effective June 30, 2008, the unencumbered balance of the funds appropriated in 2007‑2008 to The University of North Carolina Board of Governors and the State Education Assistance Authority in Section 9.7 of S.L. 2007‑323 shall revert to the General Fund. The amount reverted shall be no less than twenty‑seven million six hundred five thousand two hundred ten dollars ($27,605,210).
HIGHER EDUCATION STUDIES/DISTANCE EDUCATION AND UNC ENROLLMENT GROWTH FUNDING FORMULAS
SECTION 9.10.(a) The Joint Legislative Program Evaluation Oversight Committee shall include in the 2009‑2010 Work Plan for the Program Evaluation Division of the General Assembly a study of the start‑up and ongoing cost of distance education and compare it with the start‑up and ongoing cost of on‑campus education. The Program Evaluation Division shall submit the study to the Joint Legislative Program Evaluation Oversight Committee, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division at a date to be determined by the Joint Legislative Program Evaluation Oversight Committee.
SECTION 9.10.(b) The Joint Legislative Program Evaluation Oversight Committee shall include in the 2009‑2010 Work Plan for the Program Evaluation Division of the General Assembly a comprehensive review of the full‑time equivalencies (FTE) and student credit hours (SCH) enrollment growth funding formulas used by The University of North Carolina. In its study, the Program Evaluation Division shall consider and evaluate all of the following:
(1) The assumptions contained within each element of the funding formulas.
(2) Benchmark information related to specific elements within the formulas.
(3) How a formula based on full‑time equivalencies (FTE) compares with a formula based on Student Credit Hours (SCH).
(4) The types of formulas used by other states to fund university systems; how those states use those formulas; the success of the formulas with regard to indicating future financial needs, providing equitable funding to different institutions within the system based on the size, mission, and growth of each institution; and the types of support programs, if any, addressed by the formulas.
(5) The objectives that the formulas are designed to meet and whether those accurately reflect the goals of The University of North Carolina System.
(6) How the current formulas should be modified, if at all, to more accurately predict The University of North Carolina System's future financial needs or whether different types of formulas would be more helpful.
The Program Evaluation Division shall submit the study to the Joint Legislative Program Evaluation Oversight Committee, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division at a date to be determined by the Joint Legislative Program Evaluation Oversight Committee.
University of North Carolina To Study Coastal Sounds Wind Energy
SECTION 9.12. The University of North Carolina shall study the feasibility of establishing wind turbines in the Pamlico and Albemarle Sounds. The study shall include an analysis of energy production potential (including the resulting benefits due to a reduction in dependence on fossil fuel combustion for generation of electricity), siting, ecological impacts, and statutory or regulatory barriers to construction and operation of one or more wind turbines and associated support and interconnection facilities in the coastal sounds. The study shall also consider the feasibility and potential synergistic benefits of co‑siting wind turbines and artificial oyster reefs.
The Board of Governors shall use available funds from its budget in conducting this study and may apply for, receive, or accept grants and contributions from any source for the purposes of conducting the study. The Board of Governors shall report the results of this study to the House Committee on Energy and Energy Efficiency and the Senate Committee on Agriculture/Environment/Natural Resources by July 1, 2009.
SECTION 9.13. The Dean of the College of Agriculture and Life Sciences at North Carolina State University, the Dean of the School of Agriculture and Environmental Sciences at North Carolina Agricultural and Technical State University, and the Commissioner of Agriculture shall jointly study and develop a comprehensive strategic plan for the management of both: (i) the agriculture research stations that are currently jointly managed by North Carolina State University and the Department of Agriculture and Consumer Services, and (ii) the university research farm managed by North Carolina Agricultural and Technical State University. The plan shall identify ways to improve the efficiency and effectiveness of the research stations and university research farm. The plan shall be submitted to the Chairs of the House Agriculture Committee, the Senate Agriculture, Environment, and Natural Resources Committee, and the House and Senate Appropriations Subcommittees on Natural and Economic Resources no later than May 1, 2009.
Study of Structure & Organization of the Department of Public Instruction
SECTION 9.14. The General Administration of The University of North Carolina shall conduct an independent review of the structure and organization of the Department of Public Instruction and the State Board of Education. The General Administration may hire an outside consultant to assist it in conducting the review.
The Board of Governors shall report the results of this review to the Joint Legislative Education Oversight Committee and the chairs of the appropriations committees of the Senate and the House of Representatives by May 1, 2009.
Biennial Projection of UNC Enrollment Growth
SECTION 9.15. Part 2A of Article 1 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑30.7. Biennial projection of enrollment growth for The University of North Carolina.
By September 1 of each even‑numbered year, the General Administration of The University of North Carolina shall provide to the Joint Education Legislative Oversight Committee and to the Office of State Budget and Management a projection of the total student enrollment in The University of North Carolina that is anticipated for the next biennium. The enrollment projection shall be divided into the following categories and shall include the projected growth for each year of the biennium in each category at each of the constituent institutions: undergraduate students, graduate students (students earning master's and doctoral degrees), first year professional students, and any other categories deemed appropriate by General Administration. The projection shall also distinguish between on‑campus and distance education students. The projections shall be considered by the Director of the Budget when determining the amount the Director proposes to fund as the continuation requirement for the enrollment increase in the university system pursuant to G.S. 143C‑3‑5(b)."
North Carolina Center for Nursing
SECTION 9.16.(a) G.S. 90‑171.70 reads as rewritten:
"§ 90‑171.70. North Carolina Center for Nursing; establishment; goals.
There is established the North
Carolina Center for Nursing to address issues of supply and demand for
nursing, including issues of recruitment, retention, and utilization of nurse
manpower resources. The General Assembly finds that the Center will repay the
State's investment by providing an ongoing strategy for the allocation of the
State's resources directed towards nursing. The primary goals for the Center
shall be:conduct research on nursing supply and demand in North Carolina,
forecast the future nursing supply, and maintain databases on licensed nurses
and student nurses.
(1) To develop a
strategic statewide plan for nursing manpower in North Carolina by:
a. Establishing
and maintaining a database on nursing supply and demand in North Carolina, to
include (i) current supply and demand, and (ii) future projections; and
b. Selecting
priorities from the plan to be addressed.
(2) To convene
various groups representative of nurses, other health care providers, business
and industry, consumers, legislators, and educators to:
a. Review and
comment on data analysis prepared for the Center;
b. Recommend
systemic changes, including strategies for implementation of recommended
changes; and
c. To evaluate
and report the results of these efforts to the General Assembly and others.
(3) To enhance and
promote recognition, reward, and renewal activities for nurses in North
Carolina by:
a. Promoting
continuation of Institutes for Nursing Excellence programs as piloted by the
Area Health Education Centers in 1989‑90 or similar options;
b. Proposing and
creating additional reward, recognition, and renewal activities for nurses; and
c. Promoting
media and positive image‑building efforts for nursing."
SECTION 9.16.(b) G.S. 90‑171.71 reads as rewritten:
"§ 90‑171.71. North Carolina Center for Nursing; governing board.
(a) The North Carolina
Center for Nursing shall be governed by a policy‑setting board of
directors. The Board shall consist of 16 7 members, with a simple
majority of the Board being nurses representative of various practice areas.
Other members shall include representatives of other health care professions,
business and industry, health care providers, and consumers. The Board members
shall be appointed as follows:by the President of The University
of North Carolina and shall serve at the pleasure of the President. The terms
of all of the members shall begin July 1 and shall be for one year.
(1) Four members
appointed by the General Assembly upon recommendation of the President Pro
Tempore of the Senate, at least one of whom shall be a registered nurse and at
least one other a representative of the hospital industry;
(2) Four members
appointed by the General Assembly upon the recommendation of the Speaker of the
House of Representatives, at least one of whom shall be a registered nurse and
at least one other a representative of the long‑term care industry;
(3) Four members
appointed by the Governor, two of whom shall be registered nurses; and
(4) Four nurse
educators, one of whom shall be appointed by the Board of Governors of The
University of North Carolina, one other by the State Board of Community
Colleges, one other by the North Carolina Association of Independent Colleges
and Universities, and one by the Area Health Education Centers Program.
(b) The initial
terms of the members shall be as follows:
(1) Of the members
appointed pursuant to subdivision (1) of subsection (a) of this section, two
shall be appointed for terms expiring June 30, 1994, one for a term expiring
June 30, 1993, and one for a term expiring June 30, 1992;
(2) Of the members
appointed pursuant to subdivision (2) of subsection (a) of this section, one
shall be appointed for a term expiring June 30, 1994, two for terms expiring
June 30, 1993, and one for a term expiring June 30, 1992;
(3) Of the members
appointed pursuant to subdivision (3) of subsection (a) of this section, one
shall be appointed for a term expiring June 30, 1994, one for a term expiring
June 30, 1993, and two for terms expiring June 30, 1992; and
(4) Of the members
appointed pursuant to subdivision (4) of subsection (a) of this section, the
terms of the members appointed by the Board of Governors of The University of
North Carolina and the State Board of Community Colleges shall expire June 30,
1994; the term of the member appointed by the North Carolina Association of Independent
Colleges shall expire June 30, 1993; and the term of the member appointed by
the Area Health Education Centers Program shall expire June 30, 1992.
After the initial appointments
expire, the terms of all of the members shall be three years, with no member
serving more than two consecutive terms.
(c) The Board of Directors shall have the following powers and duties:
(1) To employ the executive director;
(2) To determine operational policy;
(3) To elect a chairperson
and officers, to serve two‑year one‑year terms. The
chairperson and officers may not succeed themselves;
(4) To establish committees of the Board as needed;
(5) To appoint a
multidisciplinary advisory council for input and advice on policy matters;
(6) To implement the major
functions of the Center for Nursing as established in the goals set out in
subsection (a) of this section; and
(7) To seek and accept non‑State
funds for carrying out Center policy.policy; and
(8) To evaluate the functions of the Center for Nursing, compare those with the functions of the Cecil G. Sheps Center for Health Services Research, and determine whether it is appropriate and more efficient to transfer the functions of the Center for Nursing to the Cecil G. Sheps Center for Health Services Research.
(d) The Board shall receive the per diem and allowances prescribed by G.S. 138‑5 for State boards and commissions.
(e) The North Carolina Center for Nursing shall be administered by The University of North Carolina through the Center's Board of Directors established under this section."
SECTION 9.16.(c) The terms of office for members of the Board of Directors of the North Carolina Center for Nursing terminate on June 30, 2008. Any person serving as a member on the Board of Directors whose term was terminated pursuant to this section may be reappointed to the Board of Directors as provided by G.S. 90‑171.71 as amended by this section.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
SECTION 10.1. Notwithstanding G.S. 143C‑9‑3, the sum of three million five hundred thousand dollars ($3,500,000) shall be transferred from the Department of State Treasurer, Budget Code 23460 (Health and Wellness Trust Fund), to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers). These funds shall be used to support General Fund appropriations for the 2008‑2009 fiscal year in the following amounts and for the following purposes:
(1) $350,000 to HealthNet (Budget Code 536J30; Fund 1510),
(2) $2,300,000 to Community Health Centers (Budget Code 536E66; Fund 1510),
(3) $500,000 to the North Carolina Housing Trust Fund (Budget Code 13010), and
(4) $350,000 to the Department of Health and Human Services, Division of Public Health, Office of Chief Medical Examiner (Budget Code 14430; Fund Code 1420, Account 534523).
SECTION 10.1A. Notwithstanding G.S. 143C‑6‑4, for the 2008‑2009 fiscal year the Department of Health and Human Services may, with approval of the Office of State Budget and Management, take actions necessary to identify and realign or adjust the authorized budgets of the Department to fund payments for audit services provided by the Office of State Auditor and for data processing services billed by the State Information Technology Services office.
DHHS RECOMMENDATIONS ON CONSOLIDATION OF CERTAIN DIVISIONS
SECTION 10.1B.(a) The Department of Health and Human Services shall develop a plan for the consolidation of the following into a newly established Division of Disability Services:
(1) The Office of Educational Services.
(2) The Division of Vocational Rehabilitation.
(3) The Division of Services to the Deaf and Hard of Hearing.
(4) The Division of Services to the Blind.
SECTION 10.1B.(b) The Plan for Consolidation shall address the following:
(1) Ensure the visibility and integrity of specialized services to visually impaired and deaf and hard‑of‑hearing adults and children.
(2) Provide a mechanism for advocates and consumers of disability services to advise the Department on policy related to service delivery.
(3) Establish procedures for addressing client complaints concerning services provided by the Department.
(4) Transfer management of the schools for the deaf and blind to the Department of Public Instruction.
(5) Determine how the nonresidential and non‑day programs currently affiliated with the residential schools can continue to be provided effectively and efficiently and determine whether this can be done with management transferred to the newly established Division of Disability Services, to another division within the Department, or to the Department of Public Instruction.
SECTION 10.1B.(c) On or before January 1, 2009, the Department shall provide to the Fiscal Research Division the following information:
(1) The number of consumers served by each division, and the extent to which these consumer bases overlap among divisions.
(2) The specific services provided by each division, and the extent to which efficiencies could be gained through consolidating the services/agencies.
(3) The number of staff in each service provided by each office or division named in subsection (a) of this section and the number of staff needed for each proposed service under a division of disability services.
(4) The 2008‑2009 fiscal year budgeted and the 2007‑2008 fiscal year actual expenditures, receipts, and State appropriations and the proposed budgeted expenditures, receipts, and State appropriation for a new division of disability services.
(5) Regional offices across the State currently in each program and how these locations would be used by a new Disabilities Division.
(6) Potential gains in efficiency and benefits to consumers from cross‑training staff over time.
SECTION 10.1B.(d) The Department shall submit its Plan for Consolidation to the Senate Committee on Appropriations, Senate Appropriations Committee on Health and Human Services, the House of Representative Appropriations Committee and the House of Representatives Subcommittee on Health and Human Services, and the Fiscal Research Division not later than January 1, 2009.
STATE COUNTY SPECIAL ASSISTANCE
SECTION 10.2. Section 10.13 of S.L. 2007‑323 is amended by adding the following new subsection to read:
"SECTION 10.13.(c1) Effective January 1, 2009, the maximum monthly rate for residents in adult care home facilities shall be one thousand two hundred eleven dollars ($1,211) per month per resident unless adjusted by the Department in accordance with subsection (e) of this section."
SECTION 10.3. Section 10.26 of S.L. 2007‑323 reads as rewritten:
"SECTION 10.26.(a)
For the 2007‑2008 fiscal year and the 2008‑2009 fiscal year,year,
the Department may adjust the financial eligibility criterion of the ADAP up to
an amount not exceeding two hundred fifty percent (250%) of the federal poverty
level in order to serve as many eligible North Carolinians living with HIV
disease as possible within existing resources plus any new federal resources.
If the Department raises the eligibility limit above one hundred twenty‑five
percent (125%) of the federal poverty level and a waiting list develops as a
result, the Department shall give priority on the waiting list to those
individuals at or below one hundred twenty‑five percent (125%) of the
federal poverty level.
"SECTION 10.26.(b) For the 2008‑2009 fiscal year, the Department may, within existing ADAP Program resources, adjust the financial eligibility criterion of the ADAP up to an amount not exceeding three hundred percent (300%) of the federal poverty level in order to serve as many eligible North Carolinians living with HIV disease as possible within existing resources plus any new federal resources. If a waiting list develops as a result of the eligibility criterion being raised, the Department shall give first priority to those individuals on the waiting list with income at or below one hundred twenty‑five percent (125%) of the federal poverty level, and second priority to those individuals with income above one hundred twenty‑five percent (125%) and at or below two hundred fifty percent (250%) of federal poverty guidelines."
CHANGES TO COMMUNITY‑FOCUSED ELIMINATING HEALTH DISPARITIES INITIATIVE
SECTION 10.4. Section 10.22 of S.L. 2007‑323 reads as rewritten:
"SECTION 10.22.(a) Of
funds appropriated in this act from the General Fund to the Department of
Health and Human Services, the sum of two million five hundred thousand dollars
($2,500,000) for the 2007‑2008 fiscal year and the sum of two million
dollars ($2,000,000) for thethree million dollars ($3,000,000) for the
2008‑2009 fiscal year shall be allocated for the Community‑Focused
Eliminating Health Disparities Initiative (CFEHDI) to provide grants‑in‑aid
to local public health departments, American Indian tribes, and faith‑based
and community‑based organizations to close the gap in the health status
of African‑Americans, Hispanics/Latinos, and American Indians as compared
to the health status of white persons. These grants shall focus on the use of
preventive measures to support healthy lifestyles. The areas of focus on health
status shall be infant mortality, HIV‑AIDS and sexually transmitted
infections, cancer, diabetes, and homicides and motor vehicle deaths.
The five hundred thousand dollars ($500,000) in nonrecurring funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, for the Health Disparities Initiative in the 2007‑2008 fiscal year shall be awarded as a grant‑in‑aid to honor the memory of the following recently deceased members of the General Assembly: Bernard Allen, John Hall, Robert Holloman, Howard Hunter, Jeanne Lucas, and William Martin. These funds shall be used for concerted efforts to address large gaps in health status among North Carolinians who are African‑American, as well as disparities among other minority populations in North Carolina. These efforts shall include:
(1) Providing enhanced education and outreach to minority populations on the prevention, diagnosis, and treatment of heart disease, breast cancer, diabetes, obesity, hypertension, sickle cell anemia, and HIV infection.
(2) Addressing cultural and communication barriers to quality care by improving interpersonal processes between clinicians and patients.
The Secretary shall send to each grantee organization a letter stating that the award is made in honor of the memory of and in recognition of the recent deaths of Senators Robert Holloman, Jeanne Lucas, and William Martin and Representatives Bernard Allen, John Hall, and Howard Hunter.
"SECTION 10.22.(b) The
Department of Health and Human Services shall report on the following with
respect to funds appropriated to the CFEHDI program in fiscal years 2005‑2006,
2006‑2007, and 2007‑2008.for the 2007‑2008 and 2008‑2009
fiscal years. The report shall address for each fiscal year:
(1) Which community programs and local health departments received CFEHDI grants.
(2) What amount of funding did each program or local health department receive.
(3) Which of the minority populations were served by the programs or local health departments.
(4) Which counties were served by the programs or local health departments.
(5) What activities were planned and implemented by the programs or local health departments to fulfill the community focus of the CFEHDI program.
The report shall also contain a
comprehensive evaluation of all grantees with regard to fulfilling the goals of
the program, assessing the difference the funded activities have made in the
community, and addressing and mitigating the health disparities identified in
the Racial and Ethnic Health Disparities in North Carolina, Report Card 2006.
In addition, theThe Department shall solicit from the grantees their
observations and recommendations on ways the CFEHDI program can best accomplish
its goals. The report shall also include specific activities undertaken pursuant
to subsection (a) of this section to address large gaps in health status among
North Carolinians who are African‑American and other minority populations
in this State. The Department shall submit the report not later than October 1,
2009, 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."
NICOTINE REPLACEMENT THERAPY PROGRAMS
SECTION 10.4B. Article 1 of Chapter 90 of the General Statutes is amended by adding the following new section to read:
"§ 90‑18.6. Requirements for certain nicotine replacement therapy programs.
The Health and Wellness Trust Fund ("Trust Fund") or the Department of Health and Human Services ("Department") may contract for the operation of a tobacco use cessation program through which the Trust Fund or the Department, as applicable, may engage agents or contractors for the purpose of (i) recommending to individuals over-the-counter nicotine replacement therapy products and supplying the products free-of-charge to the individual, and (ii) discussing with the individual contraindications and all other aspects of over-the-counter nicotine replacement therapy. All medical aspects of the nicotine replacement therapy programs shall be supervised by a physician who is licensed under this Article to practice medicine and who is under contract to the Trust Fund or the Department, as applicable, for the purpose of supervising nicotine replacement therapy programs. The physician under contract with the Trust Fund or the Department, as applicable, shall be responsible for supervision of all agents or contractors of nicotine replacement therapy programs that provide nicotine replacement therapy services to members of the public. The Trust Fund or the Department, as contracting entity, shall report the name of the supervising physician to the North Carolina Medical Board."
CHILD CARE FUNDS MATCHING REQUIREMENT
SECTION 10.6. Section 10.17 of S.L. 2007‑323 reads as rewritten:
"SECTION 10.17.(a) No
local matching funds may be required by the Department of Health and Human
Services as a condition of any locality's receiving its initial allocation of
child care funds appropriated by this act unless federal law requires a match.
If the Department reallocates additional funds above twenty‑five thousand
dollars ($25,000) to local purchasing agencies beyond their initial allocation,
local purchasing agencies must provide a fifteen percent (15%)twenty
percent (20%) local match to receive the reallocated funds. Matching
requirements shall not apply when funds are allocated because of a disaster as
defined in G.S. 166A‑4(1).
"SECTION 10.17.(b) If
funds are reallocated to local purchasing agencies in accordance with subsection
(a) of this section, the Department of Health and Human Services shall evaluate
the fifteen percent (15%)twenty percent (20%) local matching
requirement to determine its effect on local purchasing agencies and whether
the matching requirement should be adjusted. The Department shall report its
findings and recommendations 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 no later than
April 1, 2009."
CHANGES TO FOSTER CARE AND ADOPTION ASSISTANCE PAYMENTS
SECTION 10.7. Section 10.29 of S.L. 2007‑323 reads as rewritten:
"SECTION 10.29.(a) The maximum rates for State participation in the foster care assistance program are established on a graduated scale as follows:
(1) $390.00$475.00
per child per month for children aged birth through 5;
(2) $440.00$581.00
per child per month for children aged 6 through 12; and
(3) $490.00$634.00
per child per month for children aged 13 through 18.
Of these amounts, fifteen
dollars ($15.00) is a special needs allowance for the child.
"SECTION 10.29.(b)
The maximum rates for the State participation in the adoption
assistance program are established on a graduated scaleconsistent with
the foster care rates as follows:
(1) $390.00$475.00
per child per month for children aged birth through 5;
(2) $440.00$581.00
per child per month for children aged 6 through 12; and
(3) $490.00$634.00
per child per month for children aged 13 through 18.
"SECTION 10.29.(c) In addition to providing board payments to foster and adoptive families of HIV‑infected children, as prescribed in Section 23.28 of Chapter 324 of the 1995 Session Laws, any additional funds remaining that were appropriated for this purpose shall be used to provide medical training in avoiding HIV transmission in the home.
"SECTION 10.29.(d) The maximum rates for the State participation in HIV foster care and adoption assistance are established on a graduated scale as follows:
(1) $800.00 per child per month with indeterminate HIV status;
(2) $1,000 per child per month confirmed HIV‑infected, asymptomatic;
(3) $1,200 per child per month confirmed HIV‑infected, symptomatic; and
(4) $1,600 per child per month terminally ill with complex care needs.
"SECTION 10.29.(e) The State and a county participating in foster care and adoption assistance shall each contribute fifty percent (50%) of the nonfederal share of the cost of care for a child placed by a county department of social services or child placing agency in a family foster home or residential child care facility. A county shall be held harmless from contributing fifty percent (50%) of the nonfederal share of the cost for a child currently in a family foster home or residential child care facility until the child leaves foster care or experiences a placement change.
"SECTION 10.29.(f) The Department of Health and Human Services may establish foster care and adoption assistance rates based on the United States Department of Agriculture (USDA) 'Expenditures on Children by Families' index subject to State appropriations for each fiscal year.
"SECTION 10.29.(g) This section becomes effective January 1, 2009, and applies to payments made on or after that date."
TICKET TO WORK IMPLEMENTATION DATE
SECTION 10.8. The Department of Health and Human Services shall implement the Ticket to Work Program on July 1, 2008, whether or not the new MMIS is operational.
IMPLEMENTATION OF MMIS/CONTRACT PROVISION
SECTION 10.9.(a) Section 10.40D(a) and (b) of S.L. 2007‑323 read as rewritten:
"SECTION 10.40D.(a)
The Department of Health and Human Services (Department) shall make full
development of the replacement Medicaid Management Information System (MMIS+) a
top priority. During the development and implementation of MMIS+, the
Department shall develop plans to ensure the timely and effective
implementation of future enhancements to the system to provide the
following capabilities:
(1) Receiving and tracking premium or other payments required by law.
(2) Compatibility with the administration of NC Health Choice, NC Kids' Care, the State Employees' Health Plan, the Health Information System, Ticket to Work, Families pay part of the cost of services under the CAP‑MR/DD and CAP children's programs, and Medicaid waivers and the Medicare 646 waiver.
These enhancements shall not delay the procurement or implementation of the core system but shall be included in the development and implementation of the multipayor initiatives included in the MMIS program currently under development between the Department, the Federal Centers for Medicare and Medicaid Services, and the Office of Information Technology Services (ITS). The Department shall make every effort to expedite the implementation of the enhancements. ITS shall work in cooperation with the Department to ensure the timely and effective implementation of the core system and enhancements. The contract between the Department and the contract vendor shall contain an explicit provision requiring that the MMIS+ system have the capability to fully implement the administration of NC Health Choice, NC Kids' Care, and all relevant Medicaid waivers and the Medicare 646 waiver and have the capability to interface with the State Health Plan for Teachers and State Employees. The Department must have detailed cost information for each requirement before signing the contract. Any contract between the Department and a vendor for the MMIS+ system that does not contain the explicit provision required under this subsection is void on its face. Notwithstanding any other provision of law to the contrary, the Secretary of the Department of Health and Human Services does not have the authority to sign a contract for the MMIS+ system if the contract does not contain the explicit provision required under this section.
"SECTION 10.40D.(b) Notwithstanding G.S. 114‑2.3, the Department of Health and Human Services shall engage the services of private counsel with the pertinent information technology and computer law expertise to review requests for proposals and to negotiate and review contracts associated with MMIS+. The counsel engaged by the Department shall review the MMIS+ contract between the Department of Health and Human Services and the vendor to ensure that the requirements of subsection (a) of this section are met in their entirety."
SECTION 10.9.(b) Of the funds appropriated in this act to the Department of Health and Human Services, the sum of three hundred thousand dollars ($300,000) for the 2008‑2009 fiscal year may be used to contract with an outside consultant to serve as project manager/coordinator to oversee the development and implementation of the MMIS+ project.
SECTION 10.9.(c) The Department of Health and Human Services shall develop a comprehensive schedule for the development and implementation of the MMIS+ that fully incorporates federal and State project management and review requirements. The Department shall ensure that the schedule is as accurate as possible. Not later than October 1, 2008, the Department shall submit the schedule to the Chairs of the House of Representatives Committee on Appropriations and the House of Representatives Subcommittee on Health and Human Services, the Chairs of the Senate Committee on Appropriations and the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division. Any adjustments to the schedule shall be immediately reported to the Chairs of the House of Representatives Committee on Appropriations and the House of Representatives Subcommittee on Health and Human Services, the Chairs of the Senate Committee on Appropriations and the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division with a full explanation of the reason for the adjustment.
SECTION 10.9.(d) Beginning December 1, 2008, the Department shall make quarterly reports on the functionality and projected costs of the MMIS+ system. Not later than April 1, 2009, the Department shall make a final report on the total costs and functionality of MMIS+. The quarterly and final reports shall be made to the Chairs of the House of Representatives Committee on Appropriations and the House of Representatives Subcommittee on Health and Human Services, the Chairs of the Senate Committee on Appropriations and the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division. A copy of the final report shall also be submitted to the Joint Legislative Commission on Governmental Operations.
SECTION 10.10.(a) Section 10.36(b) of S.L. 2007‑323 reads as rewritten:
"SECTION 10.36.(b) Policy. –
(1) 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.
(2) Cost‑containment programs. – The Department of Health and Human Services, Division of Medical Assistance, may undertake cost‑containment programs, including contracting for services, preadmissions to hospitals, and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.
(3) Fraud and abuse. – The Division of Medical Assistance, Department of Health and Human Services, shall 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.
(4) Medical policy. – Unless required for compliance with federal law, 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 medical policy change with the fiscal analysis to the Office of State Budget and Management and the Fiscal Research Division. The Department shall not implement any proposed medical policy change exceeding three million dollars ($3,000,000) in total requirements for a given fiscal year unless the source of State funding is identified and approved by the Office of State Budget and Management. For medical policy changes exceeding three million dollars ($3,000,000) in total requirements for a given fiscal year that are required for compliance with federal law, the Department shall submit the proposed medical policy or policy interpretation change with the fiscal analysis to the Office of State Budget and Management prior to implementing the change. The Department shall provide the Office of State Budget and Management and the Fiscal Research Division a quarterly report itemizing all medical policy changes with total requirements of less than three million dollars ($3,000,000)."
SECTION 10.10.(b) Section 10.36(d)(21) of S.L. 2007‑323 reads as rewritten:
"SECTION 10.36.(d) Services and Payment Bases. – The Department shall spend funds appropriated for Medicaid services 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. Unless otherwise provided, services and payment bases will be as prescribed in the State Plan as established by the Department of Health and Human Services and may be changed with the approval of the Director of the Budget.
…
(21) Personal care services. – Payment
in accordance with the State Plan developed by the Department of Health and
Human Services. Effective October 1, 2007, the Department of Health and
Human Services shall impose prior authorization on all personal care services.
Criteria for prior authorization shall be developed in consultation with the
Physician Advisory Group of the North Carolina Medical Society and shall
include a requirement that a determination and notification of approval or
denial of personal care services shall be made within seven working days of
receipt of the prior authorization request. The Department shall provide
periodic data on recipients of personal care services to Community Care of
North Carolina. Community Care of North Carolina shall assist the Department in
assessing personal care services for medical necessity. The Department
shall report on the implementation of prior authorization of all personal care
services 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 by May 1, 2008. The report on
implementation of prior authorization shall address the following:
a. Criteria for
prior authorization developed in consultation with the North Carolina Physician
Advisory Group.
b. Policies and
procedures for the prior authorization program.
c. Use of the
Uniform Screening Tool and the Integrated Assessment Tool for Medicaid Long
Term Care Services in determining the need for personal care services.
d. Cost of
implementing a prior authorization system.
e. Estimated
costs savings from the implementation of a prior authorization system for
personal care services."
SECTION 10.10.(c) Section 31.16.1(d) of S.L. 2007‑323 reads as rewritten:
"SECTION 31.16.1.(d)
Subsection (a) of this section becomes effective October 1, 2007, and applies
to Medicaid claims paid by the State on or after that date and ends with claims
paid by the State through May 31, 2008. Subsection (b) of this section becomes
effective June 1, 2008, and applies to Medicaid claims paid by the State on or
after that date and ends with claims paid by the State through May 31, 2009.
Subsection (c) of this section becomes effective June July 1, 2009,
and applies to Medicaid claims paid by the State on or after that date."
SECTION 10.10A.(a) Budget approval by the Office of State Budget and Management is required before the Department may enter into any new contract or the renewal or amendment of existing contracts that exceed the current contract amounts.
SECTION 10.10A.(b) The Department of Health and Human Services, Division of Medical Assistance, shall make every effort to effect savings within its operational budget and to use those savings to offset its contract shortfall.
PRESCRIPTION PADS/DHHS CERTIFICATION
SECTION 10.10B.(a) The Department of Health and Human Services shall accept a prescription pad or copy thereof submitted by any person and shall make a determination if the prescription pad meets the requirements of 42 U.S.C. § 1396, as amended by Sec. 7002(b) of P.L. 110‑28, the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007 (hereafter "Troop Readiness Act"). The Department shall provide a list of those prescription pads certified by the Department as meeting the requirements of the Troop Readiness Act. The Department shall post on its Web site and in its newsletters the list of certified prescription pads and the requirements for certification, and shall make this information available upon request. A person whose prescription pad has been certified by the Department as meeting the requirements of the Troop Readiness Act may represent that the person's prescription pad has been certified by the Department as meeting Troop Readiness Act requirements. A prescription pad submitted to the Department for certification shall be accompanied by a written statement under oath that the person submitting the prescription pad shall resubmit the prescription pad for certification should the features of the prescription pad change in any manner. Certification of a prescription pad by the Department shall not be construed as Department endorsement of one certified prescription pad over another certified prescription pad.
SECTION 10.10B.(b) Any person that fraudulently represents that the person's prescription pad has been certified by the Department as meeting the requirements of the Troop Readiness Act shall be in violation of G.S. 108A‑63 and may be held civilly liable to any party suffering damages due to the fraudulent misrepresentation of Department certification.
SECTION 10.10B.(c) A physician or pharmacist who in good faith accepts a prescription pad certified by the Department of Health and Human Services as meeting the requirements of 42 U.S.C. § 1396, as amended by Sec. 7002(b) of P.L. 110‑28, the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007, shall not be held civilly or criminally liable for accepting the certified pad or for damages resulting from the physician's or pharmacist's good faith reliance on the certification of the prescription pad.
CCNC CHRONIC DISEASE/MEDICAL HOME AND PATIENT MODEL PROGRAM
SECTION 10.10C. Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of five hundred thousand dollars ($500,000) for the 2008-2009 fiscal year shall be used to develop a plan for the implementation of a medical home and patient-centered collaborative model program. The model program will build on and enhance CCNC's success in reducing the cost of treating chronic disease among Medicaid enrollees through its initial implementation in six to eight counties. The model program will also allow CCNC to implement its disease management, patient-centered, medical home model to a greater number of patients, including those who will be included in the pending Medicare 646 waiver.
EXPAND HEALTH CHOICE/NC KIDS' CARE
SECTION 10.12.(a) Section 10.48 of S.L. 2007‑323 reads as rewritten:
"SECTION 10.48.(a) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of three hundred sixty‑eight thousand dollars ($368,000) for the 2007‑2008 fiscal year shall be used by the Department of Health and Human Services to produce a report that identifies the most cost‑efficient and cost‑effective method for developing and implementing a program of comprehensive health care benefits within available funding for children ages 0 through 18 in families with annual incomes between two hundred percent (200%) and three hundred percent (300%) of the federal poverty level. The report shall consider and address the following:
(1) Congress' reauthorization of the State Children's Health Insurance Program (SCHIP) with respect to:
a. The amount of federal funds authorized for each of the fiscal years covered in the reauthorization;
b. The number of fiscal years that federal funding awarded to the states remains available to each state;
c. The adequacy of the formula by which federal funds are distributed to the states; and
d. The ability of states to expand SCHIP coverage to children whose family incomes exceed two hundred percent (200%) of the federal poverty level.
The Department shall determine whether the most effective use of State funds is to develop a program that expands access to health insurance for children whose family income exceeds two hundred percent (200%) of the federal poverty level through NC Health Choice or the State Medical Assistance Program.
(2) Eligibility and benefits are not an entitlement, are for legal residents of North Carolina, and are subject to availability of State and federal funds, and State and federal requirements.
(3) The most cost‑effective use of limited State funds to offer health care services to children in families between two hundred percent (200%) and three hundred percent (300%) of the federal poverty level.
(4) Children enrolled in the program must be ineligible for Medicaid, Medicare, or other government‑sponsored health insurance. The Department shall study whether children must also be without private health insurance for a specified amount of time, e.g. six months.
(5) The health care benefits covered in the proposed expansion program shall not exceed the benefits currently covered by the NC Health Choice.
(6) The establishment of cost‑sharing measures for the families of children with an income above two hundred percent (200%) of the federal poverty level, including:
a. A monthly premium per child that is at an optimal level that simultaneously is affordable, encourages participation by families, controls costs, and provides revenue to reduce the cost of the program to the State. The amount of the premium may increase as income increases above two hundred percent (200%) of the federal poverty level.
b. Increased co‑payments and cost‑sharing that are affordable and sufficient to control costs, while not discouraging families from seeking and continuing prescribed treatment for children.
c. A deductible that is to be applied to certain health care benefits.
d. A limit on out‑of‑pocket expenses that is no more than five percent (5%) of family income.
(7) The establishment of a comprehensive annual benefit limit per child that is no more than the current annual benefit limit under NC Health Choice.
(8) The most cost‑effective and efficient way of administering and managing enrollment in the program and the collection of premiums. This may include having the current administrator of NC Health Choice be the entity to collect premiums, or designating some other benefit management or administrative entity to do so, including the Department.
"SECTION 10.48.(b) Not
later than January 1, 2008, the Department shall submit an interim report of
its findings and recommendations to the Senate Appropriations Committee on
Health and Human Services, the House of Representatives Appropriations
Subcommittee on Health and Human Services, the Joint Legislative Commission on
Governmental Operations, and the Fiscal Research Division. The Department shall
submit its final report not later than February 1, 2008. It is the intent of
the General Assembly to review the Department's recommendations before the
Department implements a program to expand access to health insurance to
children above two hundred percent (200%) of the federal poverty level effective
July 1, 2008, or upon approval of all required federal waivers, whichever occurs
later.level.
"SECTION 10.48.(c) Of
the funds appropriated in this act to the Department of Health and Human
Services, the sum of seven ($7,000,000) for the 2008‑2009 fiscal year
shall be used to implement a program to expand access to health insurance to
children above two hundred percent (200%) of the federal poverty level
effective July 1, 2008.
"SECTION 10.48.(d) The Department of Health and Human Services, Division of Medical Assistance, shall implement a health care assistance program, NC Kids' Care, to provide health insurance coverage to children in families with incomes above two hundred percent (200%) and not more than two hundred fifty percent (250%) of the federal poverty level, by expanding the Health Insurance Program for Children established under Part 8 of Article 2 of Chapter 108A of the General Statutes. Except as otherwise provided, all the requirements of Part 8 of Article 2 of Chapter 108A of the General Statutes shall apply to the NC Kids' Care program. The Department shall submit any State Child Health Plan amendments required to implement this section. Eligibility for and benefits under this program are not an entitlement and are subject to availability of funds and other changes to State and federal law.
"SECTION 10.48.(e) Eligibility. – The Department may enroll eligible children based on the availability of funds. Following are the eligibility and other requirements for participation in NC Kids' Care. Children must:
(1) Be between the ages of birth through 18 years of age;
(2) Be ineligible for Medicaid, Medicare, or other government sponsored health insurance, except that any child covered under G.S. 108A‑70.21(g) as of the effective date of this section shall be eligible for participation in NC Kids' Care as provided in subsection (o) of this section;
(3) If permitted by federal law, have been uninsured for a period of time established by the Department in accordance with federal law. A child enrolled in NC Health Choice pursuant to Part 8 of article 1 of Chapter 108A of the General statutes immediately prior to enrollment under NC Kids' Care shall not be required to satisfy a waiting period in order to receive coverage under NC Kids' Care.
(4) Be in a family whose family income is above two hundred percent (200%) through two hundred fifty percent (250%) of the federal poverty level;
(5) Be a resident of this State, meet applicable federal citizenship and immigration requirements, and be eligible under federal law; and
(6) Have paid the monthly premiums required under this section.
"SECTION 10.48.(f) Benefits and Limitations. – Except as otherwise provided in this section for eligibility and cost‑sharing requirements, health benefits coverage provided to children eligible for NC Kids' Care shall be the same as coverage provided under Part 8 of Article 2 of Chapter 108A of the General Statutes.
"SECTION 10.48.(g) Community Care of North Carolina. – The Department of Health and Human Services shall provide services to children enrolled in the NC Kids' Care program through Community Care of North Carolina and shall pay Community Care of North Carolina providers a care management fee for these services as allowed under Medicaid.
"SECTION 10.48.(h) Cost‑Sharing. – The Department shall require NC Kids' Care enrollees to contribute to the cost of their care through the use of deductibles, co‑payments, and premiums as follows:
(1) No annual enrollment fee. – In lieu of an annual enrollment fee, a monthly premium shall be charged for each child or family enrolled in NC Kids' Care. The Department shall establish a procedure for sharing a portion of premium receipts with each county department of social services to cover the cost of determining eligibility for services under NC Kids' Care.
(2) Premiums. – The premium amount charged for each child or family shall vary depending on family income. Enrollees shall pay monthly premiums as follows:
a. Enrollees whose family income is above two hundred percent (200%) through two hundred twenty‑five percent (225%) of the federal poverty level shall pay a monthly premium not to exceed thirty dollars ($30.00) per child.
b. Enrollees whose family income is above two hundred twenty‑five percent (225%) through two hundred fifty percent (250%) of the federal poverty level shall pay a monthly premium not to exceed sixty dollars ($60.00) per child.
(3) Co‑payments. – NC Kids' Care enrollees shall be responsible for co‑payments to providers as follows:
a. Ten dollars ($10.00) per child for each primary care physician visit;
b. Twenty‑five dollars ($25.00) per child for each specialty care physician visit;
c. Twenty‑five dollars ($25.00) per child for each physical therapy, occupational therapy, or speech therapy visit;
d. Thirty dollars ($30.00) per child for each outpatient hospital visit;
e. Fifty dollars ($50.00) per child for each inpatient hospital visit;
f. Twenty dollars ($20.00) per child for durable medical equipment, except there shall be no co‑payment required for diabetic supplies;
g. One hundred dollars ($100.00) for each emergency room visit, except the co‑payment is waived if the enrollee is admitted to the hospital;
h. One hundred fifty dollars ($150.00) for each ambulance service, except the co‑payment is waived if the enrollee is admitted to the hospital;
i. Outpatient prescription drugs, as follows:
1. Five dollars ($5.00) for each generic prescription drug, for each brand‑name prescription drug for which there is no generic substitution available, and for each covered over‑the‑counter medication; and
2. Twenty dollars ($20.00) for each brand‑name prescription drug for which there is a generic substitution available.
(4) Deductible. – The Department may establish an annual deductible not to exceed two hundred fifty dollars ($250.00) per child.
(5) The Department shall establish maximum annual cost‑sharing limits per individual or family, provided that the total annual aggregate cost‑sharing, including premiums, with respect to all children in a family receiving benefits under this section shall not exceed five percent (5%) of the family's income for the year involved.
"SECTION 10.48.(i) Enrollment in NC Kids' Care shall not exceed 15,000 children for the 2008‑2009 fiscal year. This enrollment cap shall not be exceeded even if State and federal funds are available to enroll additional children for the current fiscal year.
"SECTION 10.48.(j) The nonfederal costs of NC Kids' Care shall be paid with State funds and enrollee premiums. Counties shall not be required to share in the nonfederal costs of NC Kids' Care.
"SECTION 10.48.(k) To the extent allowed by federal law, providers of services under NC Kids' Care shall be paid at rates equivalent to Medicaid rates, less any applicable co‑payments or deductibles.
"SECTION 10.48.(l) Administration of NC Kids' Care shall be in accordance with Part 8 of Article 2 of Chapter 108A of the General Statutes.
"SECTION 10.48.(m) Enrollees covered under G.S. 108A‑70.21(g) prior to the effective date of subsection (n) of this section may choose to continue coverage under that section through the end of their buy‑in coverage period or enroll in NC Kids' Care provided they meet the eligibility requirements, pay the applicable premium, and notify their county department of social services within 60 days of receiving notice of their potential eligibility under NC Kids' Care. For any enrollee electing to transfer coverage from the buy‑in program to NC Kids' Care, coverage under NC Kids' Care shall become effective the first day of the next month immediately following the month in which they notified their county department of social services of their intent to enroll in NC Kids' Care.
"SECTION 10.48.(n) This section becomes effective April 1, 2009, or upon approval of all State Child Health Plan amendments, whichever is later, and is contingent upon the availability of sufficient federal funding. The Department shall not apply for such amendments until the US Congress acts to reauthorize the State Children's Health Insurance Program with sufficient funding to support the current North Carolina program and the provisions of this section."
SECTION 10.12.(b) G.S. 108A‑70.21(c) reads as rewritten:
"(c) Annual Enrollment Fee. – There shall be no enrollment fee for Program coverage for enrollees whose family income is at or below one hundred fifty percent (150%) of the federal poverty level. The enrollment fee for Program coverage for enrollees whose family income is above one hundred fifty percent (150%) through two hundred percent (200%) of the federal poverty level shall be fifty dollars ($50.00) per year per child with a maximum annual enrollment fee of one hundred dollars ($100.00) for two or more children. The enrollment fee shall be collected by the county department of social services and retained to cover the cost of determining eligibility for services under the Program. County departments of social services shall establish procedures for the collection of enrollment fees."
SECTION 10.12.(c) G.S. 108A‑70.21(g) reads as rewritten:
"(g) Purchase of
Extended Coverage. – An enrollee in the Program who loses eligibility due to an
increase in family income above two hundred percent (200%) of the federal
poverty level and up to and including two hundred twenty‑five percent
(225%) of the federal poverty level fifty percent (250%) of the federal
poverty level and up to and including two hundred seventy‑five percent (275%)
of the federal poverty level may purchase at full premium cost continued
coverage under the Program for a period not to exceed one year beginning on the
date the enrollee becomes ineligible under the income requirements for the
Program. The same benefits, copayments, and other conditions of
enrollment under the Program shall applyapplicable to extended
coverage purchased under this subsection.subsection shall be the same
as those applicable to an NC Kids' Care enrollee whose family income equals two
hundred fifty percent (250%) of the federal poverty level."
SECTION 10.13.(a) G.S. 135‑39.5(23), 135‑39.6(d), and 135‑39.6A(c) are repealed.
SECTION 10.13.(b) G.S. 135‑42 reads as rewritten:
"§
135‑42. Undertaking.Administration and processing of Program
claims.
(a) The State of North
Carolina undertakes to make available a health insurance program for children
(hereinafter called the "Program") children (Program), which
shall be called North Carolina Health Choice for Children. The Program shall
to provide comprehensive acute medical care to low‑income, uninsured
children who are residents of this State and who meet the eligibility
requirements established for the Program under Part 8 of Article 2 of Chapter
108A of the General Statutes. The Executive Administrator and Board of
Trustees of the State Health Plan for Teachers and State Employees (hereinafter
called the "Plan") shall administer the Program under this Part and
shall carry out their duties and responsibilities in accordance with Parts 2
and 3 of this Article and with applicable provisions of Part 8 of Article 2 of
Chapter 108A. The Plan's self‑insured indemnity program shall not incur
any financial obligations for the Program in excess of the amount of funds that
the Plan's self‑insured indemnity program receives for the Program.
Except as provided in this Part, the Program shall be administered by the
Department of Health and Human Services in accordance with Part 8 of Article 2
of Chapter 108A of the General Statutes and as required under applicable
federal law.
(a1) Notwithstanding any other provision of law, the Secretary of the Department of Health and Human Services shall delegate the responsibility for the administration and processing of claims for benefits provided under the Program to the Executive Administrator and Board of Trustees of the State Health Plan for Teachers and State Employees (hereinafter called the "Plan") until such date, but not later than July 1, 2010, the Secretary determines that the Department is prepared to assume some or all of these responsibilities. In administering the processing of claims for benefits, the Executive Administrator and Board of Trustees shall have the same type of powers and duties as provided for these purposes under the Predecessor Plan. For the purposes of this Part, "Predecessor Plan" means the "North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan in effect prior to July 1, 2008." The claims payments shall be made against accounts maintained by the Department of Health and Human Services. The Executive Administrator and Board of Trustees shall establish premium rates for benefits provided under this Part. The Department of Health and Human Services shall, from State and federal appropriations and from any other funds made available for the Program, make payments to the Plan as determined by the Plan for its administration, claims processing, and other services delegated by the Secretary to provide coverage for acute medical care for children eligible for benefits provided under the Program. The Plan shall not incur any financial obligations for the Program in excess of the amount of funds that the Plan receives for the Program.
(b) The benefits provided
under the Program shall be equivalent to the Teachers' and State Employees'
Comprehensive Major Medical Plan (hereafter "Predecessor Plan") in
effect through June 30, 2008, and as provided under Part 8 of Article 2 of
Chapter 108A of the General Statutes. and made available through the
Plan pursuant to Articles 2 and 3 of this Chapter and as provided under G.S. 108A‑70.21(b)
and administered by the Plan's Executive Administrator and Board of Trustees.
To the extent there is a conflict between the provisions of Part 8 of Article 2
of Chapter 108A and Part 3 of this Article the Predecessor Plan pertaining
to eligibility, fees, deductibles, copayments, and lifetime maximum
benefits, and other cost‑sharing charges, the provisions of Part 8 of
Article 2 of Chapter 108A shall control. In administering the benefits provided
by this Part, the Executive Administrator and Board of Trustees shall have the
same type of powers and duties that are provided under Part 3 of this
Article the Predecessor Plan for hospital and medical benefits.
(c) The benefits authorized by this Part are available only to children who are residents of this State and who meet the eligibility requirements established for the Program under Part 8 of Article 2 of Chapter 108A of the General Statutes."
SECTION 10.13.(c) Part 5 of Article 3 of Chapter 135 of the General Statutes is amended by adding the following new sections to read:
"§ 135‑43. Child health insurance fund.
There is established a Child Health Insurance Fund. All premium receipts or any other receipts, including earnings on investments, occurring or arising in connection with acute medical care benefits provided under the Program shall be deposited into the Child Health Insurance Fund. Disbursements from the Child Health Insurance Fund shall include any and all amounts required to pay the benefits and administrative costs of the Health Insurance Program for Children.
"§ 135‑44. Data reporting.
The Executive Administrator and Board of Trustees of the State Health Plan for Teachers and State Employees shall provide to the Department:
(1) Data as necessary and in sufficient detail to meet federal reporting requirements under Title XXI; and
(2) Data showing cost‑sharing paid by Program enrollees to assist the Department in monitoring and ensuring that enrollees do not exceed the Program's cost of sharing limitations.
(3) Data as necessary and in sufficient detail to meet the data collections and reporting requirements pursuant to G.S. 108A ‑70.27."
SECTION 10.13.(d) G.S. 108A‑70.18 reads as rewritten:
"§ 108A‑70.18. Definitions.
As used in this Part, unless the context clearly requires otherwise, the term:
(1) "Comprehensive health coverage" means creditable health coverage as defined under Title XXI.
(2) "Family income" has the same meaning as used in determining eligibility for the Medical Assistance Program.
(3) "FPL" or "federal poverty level" means the federal poverty guidelines established by the United States Department of Health and Human Services, as revised each April 1.
(4) "Medical Assistance Program" means the State Medical Assistance Program established under Part 6 of Article 2 of Chapter 108A of the General Statutes.
(4a) "Predecessor Plan" means the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan in effect prior to July 1, 2008.
(5) "Program" means The Health Insurance Program for Children established in this Part.
(6) "State Plan" means the State Child Health Plan for the State Children's Health Insurance Program established under Title XXI.
(7) "Title XXI" means Title XXI of the Social Security Act, as added by Pub. L. 105‑33, 111 Stat. 552, codified in scattered sections of 42 U.S.C. (1997).
(8) "Uninsured" means the applicant for Program benefits is not covered under any private or employer‑sponsored comprehensive health insurance plan on the date of enrollment."
SECTION 10.13.(e) G.S. 108A‑70.20 reads as rewritten:
"§ 108A‑70.20. Program established.
The Health Insurance Program for Children is established. The Program shall be known as North Carolina Health Choice for Children, and it shall be administered by the Department of Health and Human Services in accordance with this Part and as required under Title XXI and related federal rules and regulations. Administration of Program benefits and claims processing shall be as provided under Part 5 of Article 3 of Chapter 135 of the General Statutes."
SECTION 10.13.(f) Effective July 1, 2008, G.S. 108A‑70.21 reads as rewritten:
"§ 108A‑70.21. Program eligibility; benefits; enrollment fee and other cost‑sharing; coverage from private plans; purchase of extended coverage.
(a) Eligibility. – The Department may enroll eligible children based on availability of funds. Following are eligibility and other requirements for participation in the Program:
(1) Children must:
a. Be between the ages of 6 through 18;
b. Be ineligible for Medicaid, Medicare, or other federal government‑sponsored health insurance;
c. Be uninsured;
d. Be in a family whose family income is above one hundred percent (100%) through two hundred percent (200%) of the federal poverty level;
e. Be a resident of this State and eligible under federal law; and
f. Have paid the Program enrollment fee required under this Part.
(2) Proof of family income and residency and declaration of uninsured status shall be provided by the applicant at the time of application for Program coverage. The family member who is legally responsible for the children enrolled in the Program has a duty to report any change in the enrollee's status within 60 days of the change of status.
(3) If a responsible parent is under a court order to provide or maintain health insurance for a child and has failed to comply with the court order, then the child is deemed uninsured for purposes of determining eligibility for Program benefits if at the time of application the custodial parent shows proof of agreement to notify and cooperate with the child support enforcement agency in enforcing the order.
If health insurance other than under the Program is provided to the child after enrollment and prior to the expiration of the eligibility period for which the child is enrolled in the Program, then the child is deemed to be insured and ineligible for continued coverage under the Program. The custodial parent has a duty to notify the Department within 10 days of receipt of the other health insurance, and the Department, upon receipt of notice, shall disenroll the child from the Program. As used in this paragraph, the term "responsible parent" means a person who is under a court order to pay child support.
(4) Except as otherwise provided in this section, enrollment shall be continuous for one year. At the end of each year, applicants may reapply for Program benefits.
(b) Benefits. – Except as
otherwise provided for eligibility, fees, deductibles, copayments, and other
cost‑sharing charges, health benefits coverage provided to children
eligible under the Program shall be equivalent to coverage provided for
dependents under the State Health Plan for Teachers and State Employees,
including optional prepaid plans.Predecessor Plan.
In addition to the benefits
provided under the Plan,Predecessor 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, fluoride varnish, 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 and materials
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 ophthalmologists,
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, prior approval. Upon prior approval 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 approved
hearing aid specialist approved by the Plan. Prior approval of the Plan specialist.
Prior approval is required for hearing aids, accessories, earmolds,
repairs, loaners, and rental aids.
(4) Over‑the‑counter medications: Selected over‑the‑counter medications provided the medication is covered under the State Medical Assistance Plan. Coverage shall be subject to the same policies and approvals as required under the Medicaid program.
Effective January 1, 2006, the
The Department shall provide services to children enrolled in the NC
Health Choice Program through Community Care of North Carolina and shall pay
Community Care of North Carolina providers for these services as allowed under
Medicaid.
(b1) Payments. – Prescription
drug providers shall accept as payment in full, for outpatient prescriptions
filled, amounts allowable for prescription drugs under Medicaid. For all other
providers, effective no later than January 1, 2006, services provided to
children enrolled in the Program shall be provided at rates equivalent to one
hundred fifteen percent (115%) percent (100%) of Medicaid rates,
less any co‑payments assessed to enrollees under this Part. Effective
July 1, 2006, services provided to these children shall be provided at rates
equivalent to one hundred percent (100%) of Medicaid rates, less any co‑payments
assessed to enrollees under this Part. Effective until rates equivalent to one
hundred fifteen percent (115%) of Medicaid rates become effective, providers of
services to Program enrollees shall accept as payment in full for services
rendered the maximum allowable charges under the State Health Plan for Teachers
and State Employees for services less any co‑payments assessed to
enrollees under this Part.
(c) Annual Enrollment Fee. – There shall be no enrollment fee for Program coverage for enrollees whose family income is at or below one hundred fifty percent (150%) of the federal poverty level. The enrollment fee for Program coverage for enrollees whose family income is above one hundred fifty percent (150%) of the federal poverty level shall be fifty dollars ($50.00) per year per child with a maximum annual enrollment fee of one hundred dollars ($100.00) for two or more children. The enrollment fee shall be collected by the county department of social services and retained to cover the cost of determining eligibility for services under the Program. County departments of social services shall establish procedures for the collection of enrollment fees.
(d) Cost‑Sharing. –
There shall be no deductibles, copayments, or other cost‑sharing charges
for families covered under the Program whose family income is at or below one
hundred fifty percent (150%) of the federal poverty level, except that fees for
outpatient prescription drugs are applicable and shall be one dollar ($1.00)
for each outpatient generic prescription drug anddrug, for each
outpatient brand‑name prescription drug for which there is no generic
substitution available.available, and for each covered over‑the‑counter
medication. 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 one dollar ($1.00) fee
for each outpatient generic prescription drug anddrug, for each
outpatient brand‑name prescription drug for which there is no generic
substitution available.available, and for each covered over‑the‑counter
medication. 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 State
Health Plan for Teachers and State Employees.Department.
Copayments required under this subsection for prescription drugs apply only to prescription drugs prescribed on an outpatient basis.
(e) Cost‑Sharing
Limitations. – The total annual aggregate cost‑sharing, including fees,
with respect to all children in a family receiving Program benefits under this
Part shall not exceed five percent (5%) of the family's income for the year
involved. To assist the Department in monitoring and ensuring that the
limitations of this subsection are not exceeded, the Executive Administrator
and Board of Trustees of the State Health Plan for Teachers and State Employees
shall provide data to the Department showing cost‑sharing paid by Program
enrollees.
(f) Coverage From Private Plans. – The Department shall, from funds available for the Program, pay the cost for dependent coverage provided under a private insurance plan for persons eligible for coverage under the Program if all of the following conditions are met:
(1) The person eligible for Program coverage requests to obtain dependent coverage from a private insurer in lieu of coverage under the Program and shows proof that coverage under the private plan selected meets the requirements of this subsection;
(2) The dependent coverage under the private plan is actuarially equivalent to the coverage provided under the Program and the private plan does not engage in the exclusive enrollment of children with favorable health care risks;
(3) The cost of dependent coverage under the private plan is the same as or less than the cost of coverage under the Program; and
(4) The total annual aggregate cost‑sharing, including fees, paid by the enrollee under the private plan for all dependents covered by the plan, do not exceed five percent (5%) of the enrollee's family income for the year involved.
The Department may reimburse an enrollee for private coverage under this subsection upon a showing of proof that the dependent coverage is in effect for the period for which the enrollee is eligible for the Program.
(g) Purchase of Extended Coverage. – An enrollee in the Program who loses eligibility due to an increase in family income above two hundred percent (200%) of the federal poverty level and up to and including two hundred twenty‑five percent (225%) of the federal poverty level may purchase at full premium cost continued coverage under the Program for a period not to exceed one year beginning on the date the enrollee becomes ineligible under the income requirements for the Program. The same benefits, copayments, and other conditions of enrollment under the Program shall apply to extended coverage purchased under this subsection.
(h) No State Funds for Voluntary Participation. – No State or federal funds shall be used to cover, subsidize, or otherwise offset the cost of coverage obtained under subsection (f) of this section.
(i) No Lifetime Maximum Benefit Limit. – Benefits provided to an enrollee in the Program shall not be subject to a maximum lifetime limit."
SECTION 10.13.(g) G.S. 108A‑70.22 is repealed.
SECTION 10.13.(h) G.S. 108A‑70.23 reads as rewritten:
"§ 108A‑70.23. Services for children with special needs established; definition; eligibility; services; limitation; recommendations; no entitlement.
(a) [Special Needs Services Authorized. –] The Department shall, from federal funds received and State funds appropriated for the Program, pay for services for children with special needs as authorized under this section. As used in this section, the term "children with special needs" or "special needs child" means children who have been diagnosed as having one or more of the following conditions which in the opinion of the diagnosing physician (i) is likely to continue indefinitely, (ii) interferes with daily routine, and (iii) require extensive medical intervention and extensive family management:
(1) Birth defect, including genetic, congenital, or acquired disorders;
(2) Developmental disability as defined under G.S. 122C‑3;
(3) Mental or behavioral disorder; or
(4) Chronic and complex illnesses.
(b) Eligibility for Services. – In order to be eligible for services under this section a special needs child must be enrolled in the Program.
(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:
a. No services for long‑term care shall be provided under this section;
b. 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.the Predecessor
Plan.
(d) Limitation. – Funds may
be expended for services under this section only if the special needs child is
enrolled in the Program, the services provided under this section are not
provided under Part 5 of Article 3 of Chapter 135 of the General Statutes,
the Predecessor Plan and the child meets the definition of a special
needs child under this section.
(e) Case Management Services. – The Department shall develop procedures for the provision of case management services by the Department to eligible special needs children. Case management services shall be developed to ensure to the maximum extent possible that services are provided in the most efficient and effective manner considering the special needs of the child. The cost of providing case management services for children with special needs shall be paid from funds available for services under this section.
(f) Recommendations by
Commission on Children With Special Health Care Needs. – In implementing this
section the Department shall consider the recommendations of the Commission on
Children With Special Health Care Needs established under Article 71Article
72 of Chapter 143 of the General Statutes. The Department, in consultation
with the Commission on Children With Special Health Care Needs shall develop
procedures for providing respite care services under emergency circumstances.
(g) No Entitlement. – Nothing in this section shall be construed as entitling any person to services under this section."
SECTION 10.13.(i) G.S. 108A‑70.24 is repealed.
SECTION 10.13.(j) G.S. 108A‑27(c) reads as rewritten:
"§ 108A‑70.27. Data collection; reporting.
…
(c) The Executive
Administrator and Board of Trustees of the North Carolina Teachers' and State
Employees' Major Medical Plan ("Plan") shall provide to the
Department data required under this section that are collected by the Plan.
Data shall be reported by the Plan in sufficient detail to meet federal
reporting requirements under Title XXI. The PlanThe Department shall
report periodically to the Joint Legislative Health Care Oversight Committee
claims processing data for the Program and any other information the Plan or
the Committee deems appropriate and relevant to assist the Committee in its
review of the Program."
SECTION 10.13.(k) Effective July 1, 2009, G.S. 108A‑70.21(b)(1), as amended by subsection (g) of this section, reads as rewritten:
"§ 108A‑70.21. Program eligibility; benefits; enrollment fee and other cost‑sharing; coverage from private plans; purchase of extended coverage.
…
(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 Predecessor Plan.
In addition to the benefits provided under the Predecessor Plan, dental services and supplies as follows:
(1) Dental: Oral
examinations, teeth cleaning, and scaling topical fluoride treatments
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, fluoride varnish, sealants, simple extractions,sealants,
extractions, other than impacted teeth or wisdom teeth, therapeutic
pulpotomies, space maintainers, root canal therapy for permanent anterior
teeth and permanent first molars, prefabricated stainless steel crowns, and
routine fillings of amalgam or other tooth‑colored filling material to
restore diseased teeth.
(1a) Orthognathic surgery to correct functionally impairing malocclusions when orthodontics was approved and initiated while the child was covered by Medicaid and the need for orthognathic surgery was documented in the orthodontic treatment plan.
No benefits are to be provided for services and materials under this subsection that do not meet the standards accepted by the American Dental Association."
SECTION 10.13.(l) The Secretary of the Department of Health and Human Services shall develop and implement a plan for assuming administrative responsibility for the North Carolina Health Choice for Children program by transitioning all administrative oversight and claims processing activities from the Executive Administrator and Board of Trustees of the State Health Plan for Teachers and State Employees to the Division of Medical Assistance. The transition of all administrative oversight and claims processing from the State Health Plan to the Division of Medical Assistance shall be completed not later than July 1, 2010. The Secretary shall report to the Joint Legislative Health Care Oversight Committee and the Committee on Employee Hospital and Medical Benefits at least 30 days prior to effecting the transition of the responsibilities for the administration and processing of claims for benefits provided under the North Carolina Health Choice for Children program from the Executive Administrator and Board of Trustees of the State Health Plan for Teachers and State Employees to the Department.
SECTION 10.13.(m) The Secretary of the Department of Health and Human Services shall develop a plan to ensure operation of the most cost‑effective program on a long‑term basis, including identifying a new third‑party administrator and restructuring the benefits design for the North Carolina Health Choice program, if necessary, and provide a progress report to the General Assembly by May 15, 2009. The following factors should be considered in identifying and evaluating alternatives for a long‑term claims processing solution:
(1) The ability of the State and the amount of time required to realize a return on its investment in the BCBSNC Power MHS system (i.e., the cost to the State to move NCHC claims processing from the Legacy System to MHS).
(2) The operational efficiency of the BCBSNC Power MHS system as an interim solution.
(3) The amount of time, transition and operating costs required to select a new vendor and develop, design, and implement an independent claims processing system for NC Health Choice.
(4) Likely operational issues and additional costs associated with ensuring compatability of an independent claims processing system with the MMIS replacement system.
(5) The amount of time, transition, and operating costs required to modify and enhance the core MMIS replacement system to process NC Health Choice claims.
(6) The impact of decisions related to the benefit structure and coverage policies, including the ability to implement future program changes.
(7) Any other factors or issues related to ensuring long‑term cost‑effectiveness and operating efficiency of claims processing and other administrative activities for NC Health Choice.
SECTION 10.13.(n) Subsections (a) through (c) and subsections (e) through (k) of this section become effective July 1, 2008. Effective July 1, 2010, G.S. 135‑42, as amended by subsection (b) of this section, is repealed. The remainder of this section is effective when this act becomes law.
HEALTH CHOICE PENDING FEDERAL ACTION
SECTION 10.14.(a) Section 10.47 of S.L. 2007‑323 is repealed.
SECTION 10.14.(b) Not later than July 1, 2008, the Department of Health and Human Services shall notify the Centers for Medicare and Medicaid Services that on September 1, 2008, the Department of Health and Human Services will suspend the enrollment of additional children in the NC Health Choice Program. The Department shall begin enrolling new enrollees on April 1, 2009, only if the federal government reauthorizes or provides additional federal funding to address the shortfall in federal funding for federal fiscal year 2009 for the State Children's Health Insurance Program (SCHIP). If the federal government reauthorizes the program or provides federal funding prior to April 1, 2009, the Department shall, from available existing funds within the Department, begin enrolling new enrollees in the NC Health Choice program. Upon resuming enrollment of new enrollees, the Department may allow up to two and four‑tenths percent (2.4%) enrollment growth over the prior fiscal year's enrollment in the NC Health Choice Program. The cap in enrollment growth shall be based on the month of highest Program enrollment in the prior fiscal year.
SECTION 10.14(c) Funds remaining due to the freeze on enrollment shall be retained by NC Health Choice for use in the next fiscal year. This subsection becomes effective June 30, 2008.
SECTION 10.15.(a) For the purpose of mitigating cash‑flow problems that many non‑single‑stream local management entities (LMEs) experience at the beginning of each fiscal year, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall adjust the timing and method by which allocations of service dollars are distributed to each non‑single‑stream LME. To this end, the allocations shall be adjusted such that at the beginning of the fiscal year the Department shall distribute not less than one‑twelfth of the LME's continuation allocation and subtract the amount of the adjusted distribution from the LME's total reimbursements for the fiscal year.
SECTION 10.15.(b) Of the funds appropriated for substance abuse services to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2007‑2008 and 2008‑2009 fiscal years, the sum of at least eight million dollars ($8,000,000) shall be allocated for regionally purchased locally hosted substance abuse services. These funds shall be used to support LMEs in establishing additional regionally purchased and locally hosted substance abuse programs. Funds appropriated shall be for the purpose of developing and enhancing the American Society of Addiction Medicine (ASAM) continuum of care at the community level. The Department of Health and Human Services shall work with LMEs in establishing these programs. LMEs shall report to the Department of Health and Human Services on the LMEs' use of the funds. Reporting dates and frequency shall be as determined by the Department.
SECTION 10.15.(c) The Department shall encourage the conversion of the remaining non‑single‑stream LMEs to single‑stream funding as soon as possible. The Department shall develop prompt‑pay guidelines as part of single‑stream funding requirements. The Department shall also develop standards for the removal of single‑stream designation for those LMEs that do not continue to comply with the applicable requirements for single‑stream funding, except that the Department's requirements shall allow for LMEs in the first year of single‑stream funding to have a six‑month grace period to comply with the requirements from the time the LME begins single‑stream funding. For its report on performance measures, the Department shall include a matrix by LME and performance measure of those LMEs that are not meeting the performance measure.
SECTION 10.15.(d) The Department of Health and Human Services shall simplify the current State Integrated Payment and Reporting System (IPRS) to encourage more providers to serve State‑paid clients. This effort shall include working with LMEs to develop billing codes for relevant activities currently lacking such codes.
SECTION 10.15.(e) The Department of Health and Human Services shall consult with LMEs and service providers to determine why there have been under‑ and over‑expenditure of State service dollars by LMEs and shall take the action necessary to address the problem. In making its determination, the Department shall work with LMEs and providers. Not later than January 1, 2009, the Department shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Fiscal Research Division, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services on actions taken to address the problem of LME under‑ and over‑expenditure of service dollars. The report shall include legislative action needed to address the problem.
SECTION 10.15.(f) The Department shall perform a services gap analysis of the Mental Health, Developmental Disabilities, and Substance Abuse Services System. The Department of Health and Human Services shall involve LMEs in performing the gap analysis. The Department shall not contract with an independent entity to perform the gap analysis. The Department shall report the results of its analysis to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Fiscal Research Division, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services not later than January 1, 2010.
SECTION 10.15.(g) Notwithstanding any other provision of law to the contrary, the Secretary of Health and Human Services shall delay the opening of Central Regional Hospital until all Centers for Medicare and Medicaid Services (CMS) and JCAHO staffing and safety requirements have been met. Not sooner than the date on which all of these staffing and safety requirements have been met, the Secretary may transfer patients from John Umstead Hospital to Central Regional Hospital. After transferring patients from John Umstead Hospital, the Secretary may transfer patients from Dorothea Dix Hospital to Central Regional Hospital if the Secretary finds that Central Regional Hospital is operating in a safe and secure manner.
SECTION 10.15.(h) In order to temporarily address high admissions to adult acute unit beds in the State psychiatric hospitals, the Secretary of the Department of Health and Human Services may, notwithstanding G.S. 122C‑181 and G.S. 122C‑112.1(a)(30), open and operate on a temporary basis up to 60 beds at the Central Regional Hospital Wake Unit on the Dorothea Dix Campus and may maintain the Wake Unit on the Dix Campus until beds become available in the system. Section 10.49(t) of S.L. 2007‑323 does not apply to this subsection.
SECTION 10.15.(i) Onetime funds appropriated for the Dorothea Dix Hospital overflow unit shall be used to support the temporary opening and operation of the Central Regional Hospital Wake Unit on the Dorothea Dix Campus. It is the intent of the General Assembly to fund the Wake Unit for three years. Notwithstanding any other provision of law to the contrary, the Office of State Budget and Management shall establish the positions for the Central Regional Hospital Wake Unit on the Dorothea Dix campus as time‑limited positions.
SECTION 10.15.(j) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for mobile crisis teams, the sum of five million seven hundred fifty‑five thousand dollars ($5,755,000) shall be distributed to LMEs to support 30 mobile crisis teams. The new mobile crisis units shall be distributed across the State according to need as determined by the Department.
SECTION 10.15.(k) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of ten million six hundred twenty‑one thousand six hundred forty‑four dollars ($10,621,644) shall be allocated for the purchase of local inpatient psychiatric beds. These beds shall be distributed across the State according to need as determined by the Department. The Department shall enter into contracts with the LMEs and community hospitals for the management of these beds. Local inpatient psychiatric beds shall be managed and controlled by the LME, including the determination of which local or State hospital the individual should be admitted to pursuant to an involuntary commitment order. Funds shall not be allocated to LMEs but shall be held in a statewide reserve at the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to pay for services authorized by the LMEs and billed by the hospitals through the LMEs. LMEs shall remit claims for payment to the Division within 15 working days of receipt of a clean claim from the hospital and shall pay the hospital within 10 working days of receipt of payment from the Division. If the Department determines (i) that an LME is not effectively managing the beds for which it has responsibility, as evidenced by beds in the local hospital not being utilized while demand for services at the State psychiatric hospitals has not reduced, or (ii) the LME has failed to comply with the prompt payment provisions of this subsection, the Department may contract with another LME to manage the beds or, notwithstanding any other provision of law to the contrary, may pay the hospital directly. The Department shall develop reporting requirements for LMEs regarding the utilization of the beds. Funds appropriated in this section for the purchase of local inpatient psychiatric beds shall be used to purchase additional beds not currently funded by or through LMEs and shall not be used to supplant other funds available or otherwise appropriated for the purchase of psychiatric inpatient services under contract with community hospitals, including beds being purchased through Hospital Pilot funds appropriated in S.L. 2007‑323.
SECTION 10.15.(l) Funds appropriated in this act in the amount of one million eighty thousand nine hundred ninety‑two dollars ($1,080,992) for start‑up and ongoing support of respite beds for individuals with developmental disabilities shall be distributed across the State by the Department according to need.
SECTION 10.15.(m) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of six million one hundred thirteen thousand nine hundred forty‑seven dollars ($6,113,947) shall be allocated for walk‑in crisis and immediate psychiatric aftercare and shall be distributed to the LMEs to support 30 psychiatrists and related support staff. Of these funds, the sum of one million six hundred fifty thousand dollars ($1,650,000) shall be used for telepsychiatry equipment to be owned by the LMEs.
SECTION 10.15.(n) When implementing subsections (j) through (n) of this section, the Department shall apply the Cross‑Area Service Program model where appropriate.
SECTION 10.15.(o) The independent and supportive living apartments for persons with disabilities constructed from funds appropriated in this act for that purpose shall be affordable to persons with incomes at the Supplemental Security Income (SSI) level.
SECTION 10.15.(p) The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall implement the tiered CAP‑MR/DD waiver program in accordance with Section 10.49(dd) of S.L. 2007‑323. The Department shall implement the program with four tiers: (i) up to fifteen thousand dollars ($15,000); (ii) between fifteen thousand one dollars ($15,001) and forty‑five thousand dollars ($45,000); (iii) between forty‑five thousand one dollars ($45,001) and seventy‑five thousand dollars ($75,000); and (iv) between seventy‑five thousand one dollars ($75,001) and one hundred thousand dollars ($100,000). The Department shall review on a case‑by‑case basis tier funding in excess of one hundred thousand dollars ($100,000) and may authorize the excess amount based on standards adopted by the Department.
SECTION 10.15.(q) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, for the 2008‑2009 fiscal year for additional CAP‑MR/DD slots, a portion of these funds shall be allocated for slots managed under the North Carolina CAP‑MR/DD 1915(c) Medicaid waiver and shall be used for tier one slots as described under subsection (n) of this section. In addition a portion of these funds shall be allocated to fund CAP‑MR/DD slots statewide to fund a combination of slots managed under the North Carolina CAP‑MR/DD 1915(c) Medicaid waiver and slots managed under the North Carolina Piedmont Behavioral Health Care 1915(b) and (c) Medicaid waiver.
SECTION 10.15.(r) The Department of Health and Human Services shall implement a plan to catch up Piedmont Behavioral Health (PBH) CAP‑MR/DD slots to the State average such that one percent (1%) of the funds for turnover CAP‑MR/DD slots shall be transferred each year to PBH until PBH CAP‑MR/DD slots reach the State per capita average of slots.
SECTION 10.15.(s) The North Carolina Institute of Medicine (IOM) shall study and report on the transition for persons with developmental disabilities from one life setting to another, including barriers to transition and best practices in successful transitions. The IOM should conduct this study using funds appropriated for IOM studies in the 2007 Session. The study should encompass at least the following topics: (i) the transition for adolescents leaving high school, including adolescents in foster care and those in other settings; (ii) the transition for persons with developmental disabilities who live with aging parents; and (iii) the transition from the developmental centers to other settings. The IOM shall report its findings and recommendations to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Fiscal Research Division, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services on or before March 1, 2009.
SECTION 10.15.(t) The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall assist local management entities (LMEs) in using up to five percent (5%) of the LME's developmental disability funds to help successfully transition individuals from developmental disability centers into the community. The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall report on the progress of LMEs in successfully providing discharge planning to individuals with developmental disabilities. The Department of Health and Human Services shall make its report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division not later than March 1, 2009.
SECTION 10.15.(u) The Department of Health and Human Services shall review State‑County Special Assistance rates to develop an appropriate rate for special care units for persons with a mental health disability, including individuals with Traumatic Brain Injury (TBI), and shall review current rules pertaining to special care units for persons with a mental health disability to determine if additional standards are necessary. The Department shall report its findings and recommendations to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division not later than January 1, 2009.
SECTION 10.15.(v) The Department of Health and Human Services shall ensure that veterans and their families comprise one of the target populations for mental health, developmental disabilities, and substance abuse services in order that this population is eligible for existing funding.
SECTION 10.15.(w) The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall develop a service authorization process that requires a comprehensive clinical assessment to be completed by a licensed clinician prior to service delivery, except where this requirement would impede access to crisis or other emergency services. The Department shall require that the licensed professional that signs a medical order for behavioral health services must indicate on the order whether the licensed professional (i) has had direct contact with the consumer, and (ii) has reviewed the consumer's assessment. Failure of a licensed professional to comply with this requirement shall subject the licensed professional to disciplinary action by the licensed professional's occupational licensing board. The Department shall report on the development of the service authorization process to the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services not later than October 1, 2008. The Department shall not implement the service authorization process until 15 days after it has notified the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services.
SECTION 10.15.(x) The Department of Health and Human Services shall adopt policy such that provider agencies that employ or contract with both medical doctors and licensed, provisionally licensed, or licensed eligible clinical staff, whereby the doctor and the clinical staff provide services on the agency's premises, may bill "incident to" the services of a physician for provisionally licensed staff using the agency's provider number and the physician's provider number as the attending physician. All requirements for supervision of provisionally licensed or licensed eligible staff must be met.
SECTION 10.15.(y) The Department of Health and Human Services shall develop a plan to return the service authorization, utilization review, and utilization management functions to LMEs for all clients. Not later than February 1, 2009, the Department shall report on the development of the plan to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division. Not later than July 1, 2009, utilization review, utilization management, and service authorization for publicly funded mental health, developmental disabilities, and substance abuse services should be returned to LMEs representing in total at least thirty percent (30%) of the State's population. The Department shall comply with the requirements of S.L. 2007‑323, Section 10.49(ee). The Department shall not contract with an outside vendor for service authorization, utilization review, or utilization management functions, or otherwise obligate the State for these functions beyond September 30, 2010. The Department shall require LMEs to include in their service authorization, utilization management, and utilization review a review of assessments, as well as person‑centered plans and random or triggered audits of services and assessments. The Department may also develop and implement a plan to return plan authorization for CAP‑MR/DD slots to LMEs.
SECTION 10.15.(z) The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall study Medicaid waivers, including 1915(b) and (c) waivers, for all LMEs. In cases where Medicaid waivers are not appropriate for an LME, the Department shall identify and recommend strategies to increase LME flexibility to provide case management, assessment, limit provider networks, or other innovative approach for managing care. Not later than March 1, 2009, the Department shall report its findings and recommendations to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division.
SECTION 10.15.(aa) The Piedmont Behavioral Health (PBH) local management entity (LME) shall be deemed by the Department as a demonstration model in the PBH LME catchment area. The Department shall also adopt as part of the demonstration model the PBH 1915(b) and 1915(c) Medicaid waivers, and single‑stream funding for State services funds, which include funds previously transferred from State institution budgets.
SECTION 10.15.(bb) There shall be no merger of local management entities before July 1, 2009, except that local management entities (LMEs) that do not meet the catchment area requirements of G.S. 122C-115 as of January 1, 2008, may initiate, continue, or implement the LMEs' merger or consolidation plans to overcome noncompliance with G.S. 122C-115. This section does not prohibit LMEs from collaborating on their efforts to carry out their responsibilities for mental health, developmental disabilities, and substance abuse services.
SECTION 10.15.(cc) If the Secretary of the Department of Health and Human Services desires to merge LMEs, the Secretary shall develop a detailed plan for General Assembly review on its recommendation to merge, consolidate, or establish regional arrangements or consortia of LMEs. In developing the plan, the Secretary shall consult with LMEs to obtain input on the feasibility and effectiveness of potential mergers and the time frame needed to fully implement the mergers, regional arrangements, or consortia at the local level. The Secretary shall provide the plan to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division not later than March 1, 2009.
SECTION 10.15.(dd) G.S. 122C‑115.4(d) reads as rewritten:
"(d) Except as provided in G.S. 122C‑124.1 and G.S. 122C‑125, the Secretary may neither remove from an LME nor designate another entity as eligible to implement any function enumerated under subsection (b) of this section unless all of the following applies:
(1) The LME fails during the previous consecutive three months to achieve a satisfactory outcome on any of the critical performance measures developed by the Secretary under G.S. 122C‑112.1(33).
(2) The Secretary provides
focused technical assistance to the LME in the implementation of the function.
The assistance shall continue for at least six three months or
until the LME achieves a satisfactory outcome on the performance measure,
whichever occurs first.
(3) If, after six three
months of receiving technical assistance from the Secretary, the LME still
fails to achieve or maintain a satisfactory outcome on the critical performance
measure, the Secretary shall enter into a contract with another LME or agency
to implement the function on behalf of the LME from which the function has been
removed."
SECTION 10.15.(ee) G.S. 122C‑3 is amended by adding the following new subdivision to read:
"(23a) 'Minimally adequate services' means a level of service required for compliance with all applicable State and federal laws, rules, regulations, and policies and with generally accepted professional standards and principles."
SECTION 10.15.(ff) The lead paragraph of G.S. 122C‑124.1(b) reads as rewritten:
"(b) Suspension of
Funding; Assumption of Service Delivery or Management Functions. – If the
Secretary determines that a county, through an area authority or county
program, is not providing minimally adequate services, in accordance with
rules adopted by the Secretary or the Commission, services to
persons in need in a timely manner, or fails to demonstrate reasonable efforts
to do so, the Secretary, after providing written notification of the Secretary's
intent to the area authority or county program and to the board of county
commissioners of the area authority or county program, and after providing the
area authority or county program and the boards of county commissioners of the
area authority or county program an opportunity to be heard, may:"
IMPROVE AND STRENGTHEN FISCAL OVERSIGHT OF COMMUNITY SUPPORT SERVICES
SECTION 10.15A.(a) Not later than June 30, 2008, the Department of Health and Human Services, Division of Medical Assistance, shall submit to the Centers for Medicare and Medicaid Services, revised service definitions for two Medicaid billable services: (i) community support–adults, and (ii) community support‑children/adolescents. The reviewed definitions shall focus on rehabilitative services and be developed to ensure that community support services are provided as efficiently and effectively as possible to minimize overexpenditures in community support services in the 2008‑2009 fiscal year and thereafter.
SECTION 10.15A.(b) In order to ensure accountability for services provided and funds expended for community services, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall develop a tiered rate structure to replace the blended rate currently used for community support services. Under the new tiered structure, services that are necessary but do not require the skill, education, or knowledge of a qualified professional should not be paid at the same rate as services provided by qualified skilled professionals. The Department shall not implement the tiered rate structure until 15 days after it has notified the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services. The Department shall report on the development of the structure to the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services not later than October 1, 2008.
SECTION 10.15A.(c) Article 3A of Chapter 122C of the General Statutes is amended by adding the following new section to read:
"§ 122C‑81. National accreditation benchmarks.
(a) As used in this section, the term 'national accreditation' applies to accreditation by an entity approved by the Secretary that accredits mental health, developmental disabilities, and substance abuse services.
(b) The Secretary, through the Medicaid State Plan, Medicaid waiver, or rules adopted by the Secretary, shall designate the mental health, developmental disabilities, and substance abuse services which require national accreditation.
(c) Facilities enrolled with the Medicaid program prior to July 1, 2008, and providing services which require national accreditation per the approved Medicaid State Plan shall successfully complete national accreditation requirements within three years of enrollment with the Medicaid program. Facilities will meet the following benchmarks to ensure continuity of care for consumers in the event the provider does not make sufficient progress in achieving national accreditation in a timely manner:
(1) Nine months prior to the accreditation deadline – Formal selection of an accrediting agency as documented by a letter from the agency to the facility acknowledging the facility's selection of that accrediting agency. A facility failing to meet this requirement will be prohibited from admitting new clients to service. The LMEs will work with a facility failing to meet this deadline to transition clients currently receiving service to other facilities at the rate of twenty‑five percent (25%) of the facility's caseload each month. The facility will have its enrollment in the Medicaid program terminated within four months of failure to meet this deadline.
(2) Six months prior to the accreditation deadline – An on‑site accreditation review scheduled by the accrediting agency as documented by a letter from the agency to the facility. A facility failing to meet this requirement will be prohibited from admitting new clients to service. The LMEs will work with a facility failing to meet this deadline to transition clients currently receiving service to other facilities at the rate of thirty‑three percent (33%) of the facility's caseload each month. The facility will have its enrollment in the Medicaid program terminated within three months of failure to meet this deadline.
(3) Three months prior to the accreditation deadline – Completion of an on‑site accreditation review, receipt of initial feedback from accrediting agency, and submission of a Plan of Correction for any deficiencies noted by the accrediting agency. A facility failing to meet this requirement will be prohibited from admitting new clients to service. The LMEs will work with a facility failing to meet this deadline to transition clients currently receiving service to other facilities at the rate of fifty percent (50%) of the facility's caseload each month. The facility will have its enrollment in the Medicaid program terminated within two months of failure to meet this deadline.
(4) Accreditation deadline – Approval as fully accredited by the national accrediting agency. A facility failing to meet this requirement will be prohibited from admitting new clients to service. The LMEs will work with a facility failing to meet this deadline to transition clients currently receiving service to other facilities within 60 days. The facility will have its enrollment in the Medicaid program terminated within 60 days of failure to meet this deadline.
(5) A facility that has its enrollment terminated in the Medicaid program as a result of failure to meet benchmarks for national accreditation may not apply for re‑enrollment in the Medicaid program for at least one year following its enrollment termination.
(d) Facilities enrolled in the Medicaid program or contracting for State‑funded services on or after July 1, 2008, and providing services which require national accreditation shall successfully complete all accreditation requirements and be awarded national accreditation within one year of enrollment in the Medicaid program or within two years following the facility's first contract to deliver a State‑funded service requiring national accreditation. Facilities providing services which require national accreditation will be required to discontinue service delivery and will have their Medicaid enrollment and any service contracts terminated if they do not meet the following benchmarks for demonstrating sufficient progress in achieving national accreditation following the date of enrollment in the Medicaid program or initial contract for State‑funded services:
(1) Three months – On‑site accreditation review scheduled by accrediting agency as documented by a letter from the agency to the facility and completion of self‑study and self‑evaluation protocols distributed by the selected accrediting agency.
(2) Six months – On‑site accreditation review scheduled by accrediting agency as documented by a letter from the agency to the facility.
(3) Nine months – Completion of on‑site accreditation review, receipt of initial feedback from accrediting agency, plan to address any deficiencies identified developed.
(4) If a facility's Medicaid enrollment or service delivery contracts are terminated as a result of failure to meet accreditation benchmarks or failure to continue to be nationally accredited, the facility will work with the LME to transition consumers served by the facility to other service providers in an orderly fashion within 60 days of notification by the LME of such failure.
(5) A facility that has its Medicaid enrollment or service delivery contracts terminated as a result of failure to meet accreditation benchmarks or failure to continue to be nationally accredited may not reapply for enrollment in the Medicaid program or enter into any new service delivery contracts for at least one year following enrollment or contract termination."
SECTION 10.15A.(d) Section 10.36(e)(1) of S.L. 2007‑323 reads as rewritten:
"SECTION
10.36.(e) Provider payments performance bonds and visits. –
(1) Payment is limited to
Subject to the provisions of this subdivision, the Department may require
Medicaid‑enrolled providers that to 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 require the
purchase of a performance bond or the submission of an executed letter of
credit or financial instrument as a condition of initial enrollment,
reenrollment, or reinstatement if the provider fails to demonstrate financial
viability, or if the Department determines there is significant potential for
fraud and abuse or otherwise finds it is in the best interest of the Medicaid
program to do so. The Department shall specify the circumstances under
which a performance bond or executed letter of credit will be required and,
except for providers of community support services, may waive or limit the
requirements of this paragraph for individual Medicaid‑enrolled
providers or for one or more classes of Medicaid‑enrolled providers
based on the provider's or provider class's dollar amount of monthly
billings to Medicaid, or the length of time the an
individual provider has been licensed in this State to provide services,
the length of time an individual provider has been enrolled to provide Medicaid
services in this State, or to ensure adequate access to care. The Department
shall not waive the requirements of this paragraph for providers of community
support 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."
SECTION 10.15A.(e) Article 4 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑79.1. Medicaid community support services provider appeals of Department level decision.
(a) A provider that provides community support services under the Medicaid program who is aggrieved by a decision of the Department to reduce, deny, recoup, or recover reimbursement for community support services, or to deny, suspend, or revoke a provider agreement to provide community support services, shall be entitled to a hearing by the Department. A hearing shall be commenced by filing a petition with the chief hearings clerk of the Department within 30 days of the mailing of the notice by the Department of the action giving rise to the contested case. The petition shall identify the petitioner, be signed by the party or representative of the party, and shall describe the agency action giving rise to the contested case. As used in this section, "file or filing" means to place the paper or item to be filed into the care and custody of the chief hearings clerk of the Department and acceptance thereof by the chief hearings clerk, except that the hearing officer may permit the papers to be filed with the hearing officer, in which event the hearing officer shall note thereon the filing date. The Department shall supply forms for use in these contested cases.
(b) If there is a timely request for an appeal, the Department shall promptly designate a hearing officer who shall hold an evidentiary hearing. The hearing officer shall conduct the hearing according to applicable federal law and regulations and shall ensure that:
(1) Notice of the hearing is given not less than 15 days before the hearing. The notice shall state the date, hour, and place of the hearing and shall be deemed to have been given on the date that a copy of the notice is mailed, via certified mail, to the address provided by the petitioner in the petition for hearing.
(2) The hearing shall be held in Wake County, except that the hearing officer may, after consideration of the numbers, locations, and convenience of witnesses and in order to promote the ends of justice, hold the hearing by telephone or other electronic means or hold the hearing in a county in which the petitioner resides.
(3) Discovery shall be no more extensive or formal than that required by federal law and regulations applicable to the hearings. Prior to and during the hearing, a provider representative shall have adequate opportunity to examine the provider's own case file. No later than five days before the date of the hearing, each party to a contested case shall provide to each other party a copy of any documentary evidence that the party intends to introduce at the hearing and shall identify each witness that the party intends to call.
(4) The hearing officer shall have the power to administer oaths and affirmations, subpoena the attendance of witnesses, rule on prehearing motions, and regulate the conduct of the hearing.
(5) At the hearing, the parties may present such sworn evidence, law, and regulations as are relevant to the issues in the case.
(6) The petitioner and the respondent agency each have a right to be represented by a person of his choice, including an attorney obtained at the party's own expense.
(7) The petitioner and the respondent agency shall each have the right to cross‑examine witnesses as well as make a closing argument summarizing his view of the case and the law.
(8) The appeal hearing shall be recorded; however, no transcript will be prepared unless a petition for judicial review is filed pursuant to subsection (f) of this section, in which case the transcript shall be made a part of the official record. In the absence of the filing of a petition for a judicial review, the recording of the appeal hearing may be erased or otherwise destroyed 180 days after the final decision is mailed as provided in G.S. 108A‑79(i)(5).
(c) The hearing officer shall decide the case based upon a preponderance of the evidence, giving deference to the demonstrated knowledge and expertise of the agency as provided in G.S. 150B‑34(a). The hearing officer shall prepare a proposal for the decision, citing relevant law, regulations, and evidence, which shall be served upon the petitioner or the petitioner's representative by certified mail, with a copy furnished to the respondent agency.
(d) The petitioner and the respondent agency shall have 15 days from the date of the mailing of the proposal for decision to present written arguments in opposition to or in support of the proposal for decision to the designated official of the Department who will make the final decision. If neither written arguments are presented, nor extension of time granted by the final agency decision‑maker for good cause, within 15 days of the date of the mailing of the proposal for decision, the proposal for decision becomes final. If written arguments are presented, such arguments shall be considered and the final decision shall be rendered. The final decision shall be rendered not more than 90 days from the date of the filing of the petition. This time limit may be extended by agreement of the parties or by final agency decision‑maker, for good cause shown, for an additional period of up to 30 days. The final decision shall be served upon the petitioner or the petitioner's representative by certified mail, with a copy furnished to the respondent agency. In the absence of a petition for judicial review filed pursuant to subsection (f) of this section, the final decision shall be binding upon the petitioner and the Department.
(e) A petitioner who is dissatisfied with the final decision of the Department may file, within 30 days of the service of the decision, a petition for judicial review in the Superior Court of Wake County or of the county from which the case arose. The judicial review shall be conducted according to Article 4 of Chapter 150B of the General Statutes.
(f) In the event of a conflict between federal law or regulations and State law or regulations, federal law or regulations shall control. This section applies to all petitions that are filed by a Medicaid community support services provider on or after that date and for all Medicaid community support services provider petitions that have been filed at the Office of Administrative Hearings previous to this date but for which a hearing on the merits has not been commenced prior to the effective date of this act. The requirement that the agency decision must be rendered not more than 90 days from the date of the filing of the petition for hearing shall not apply to community support services provider petitions that were filed at the Office of Administrative Hearings prior to the effective date of this act. The Office of Administrative Hearings shall transfer all cases affected by this section to the Department of Health and Human Services within 30 days of the effective date of this section. This act preempts the existing informal appeal process and reconsideration review process at the Department of Health and Human Services and the existing appeal process at the Office of Administrative Hearings with regard to all appeals filed by Medicaid community support services providers under the Medical Assistance program."
SECTION 10.15A.(f) G.S. 150B‑1(e) is amended by adding the following new subdivision to read:
"(e) Exemptions From Contested Case Provisions. – The contested case provisions of this Chapter apply to all agencies and all proceedings not expressly exempted from the Chapter. The contested case provisions of this Chapter do not apply to the following:
…
(16) Hearings arising under the Medical Assistance program established under Part 6 of Chapter 108A of the General Statutes and pursuant to Title XIX of the Social Security Act and conducted in accordance with G.S. 108A‑79.1."
SECTION 10.15A.(g) The Department of Health and Human Services shall adopt guidelines for LME periodic review and rules for endorsement and reendorsement of providers to ensure that only qualified providers are endorsed and that LMEs hold those providers accountable for the Medicaid and State‑funded services they provide.
SECTION 10.15A.(h) G.S. 122C‑151.4 reads as rewritten:
"§ 122C‑151.4. Appeal to State MH/DD/SA Appeals Panel.
(a) Definitions. – The following definitions apply in this section:
(1) "Appeals Panel" means the State MH/DD/SA Appeals Panel established under this section.
(1a) "Client" means an individual who is admitted to or receiving public services from an area facility. "Client" includes the client's personal representative or designee.
(1b) "Contract" means a contract with an area authority or county program to provide services, other than personal services, to clients and other recipients of services.
(2) "Contractor"
means a person who has a contract or who had a contract during the current
fiscal year. year, or whose application for endorsement has been
denied by an area authority or county program.
(3) "Former contractor" means a person who had a contract during the previous fiscal year.
(b) Appeals Panel. – The State MH/DD/SA Appeals Panel is established. The Panel shall consist of three members appointed by the Secretary. The Secretary shall determine the qualifications of the Panel members. Panel members serve at the pleasure of the Secretary.
(c) Who Can Appeal. – The following persons may appeal to the State MH/DD/SA Appeals Panel after having exhausted the appeals process at the appropriate area authority or county program:
(1) A contractor or a former contractor who claims that an area authority or county program is not acting or has not acted within applicable State law or rules in denying the contractor's application for endorsement or in imposing a particular requirement on the contractor on fulfillment of the contract;
(2) A contractor or a former contractor who claims that a requirement of the contract substantially compromises the ability of the contractor to fulfill the contract;
(3) A contractor or former contractor who claims that an area authority or county program has acted arbitrarily and capriciously in reducing funding for the type of services provided or formerly provided by the contractor or former contractor;
(4) A client or a person who was a client in the previous fiscal year, who claims that an area authority or county program has acted arbitrarily and capriciously in reducing funding for the type of services provided or formerly provided to the client directly by the area authority or county program; and
(5) A person who claims that an area authority or county program did not comply with a State law or a rule adopted by the Secretary or the Commission in developing the plans and budgets of the area authority or county program and that the failure to comply has adversely affected the ability of the person to participate in the development of the plans and budgets.
(d) Hearing. – All members of the State MH/DD/SA Appeals Panel shall hear an appeal to the Panel. An appeal shall be filed with the Panel within the time required by the Secretary and shall be heard by the Panel within the time required by the Secretary. A hearing shall be conducted at the place determined in accordance with the rules adopted by the Secretary. A hearing before the Panel shall be informal; no sworn testimony shall be taken and the rules of evidence do not apply. The person who appeals to the Panel has the burden of proof. The Panel shall not stay a decision of an area authority during an appeal to the Panel.
(e) Decision. – The State MH/DD/SA Appeals Panel shall make a written decision on each appeal to the Panel within the time set by the Secretary. A decision may direct a contractor, an area authority, or a county program to take an action or to refrain from taking an action, but it shall not require a party to the appeal to pay any amount except payment due under the contract. In making a decision, the Panel shall determine the course of action that best protects or benefits the clients of the area authority or county program. If a party to an appeal fails to comply with a decision of the Panel and the Secretary determines that the failure deprives clients of the area authority or county program of a type of needed service, the Secretary may use funds previously allocated to the area authority or county program to provide the service.
(f) Chapter 150B Appeal. – A person who is dissatisfied with a decision of the Panel may commence a contested case under Article 3 of Chapter 150B of the General Statutes. Notwithstanding G.S. 150B‑2(1a), an area authority or county program is considered an agency for purposes of the limited appeal authorized by this section. If the need to first appeal to the State MH/DD/SA Appeals Panel is waived by the Secretary, a contractor may appeal directly to the Office of Administrative Hearings after having exhausted the appeals process at the appropriate area authority or county program. The Secretary shall make a final decision in the contested case."
SECTION 10.15A.(h1) The Department of Health and Human Services and the Office of Administrative Hearings shall work together to streamline the process for hearing Medicaid recipient appeals. The process shall be designed to significantly reduce the backlog of Medicaid recipient appeals pending as of July 1, 2008, and shall ensure that Medicaid recipients continue to receive benefits at current levels pending the outcome of the appeal. The Department shall further ensure that Medicaid applicants who have been determined to be eligible for Medicaid shall be eligible to receive community support services.
SECTION 10.15A.(i) Sections 10.49(ee)(5) and (6) of S.L. 2007‑323 read as rewritten:
"(5) All community
support services are subject to prior approval after the initial assessment
and development of a person-centered plan has been completed;approval.
(6) Providers are limited to four hours of community support for adults and eight hours of community support for children to develop the person‑centered plan. Those hours shall be provided only by a qualified professional. Providers that determine that additional hours are needed must seek and obtain prior approval. If additional hours are authorized, the LME may participate in the development of the person‑centered plan as part of its care coordination and quality management function as defined in G.S. 122C‑115.4. Not less than fifty percent (50%) of community services must be delivered by qualified professionals."
SECTION 10.15A.(j) The Department of Health and Human Services, Division of Medical Assistance, shall adopt a policy reducing the maximum allowable hours for community support services to eight hours per week.
SECTION 10.15A.(k) The lead paragraph of Section 10.49(ee) of S.L. 2007‑323 reads as rewritten:
"SECTION 10.49.(ee) For
This subsection does not apply to community support services offered
under a Medicaid managed care, capitated, at‑risk waiver. For all other
community support services, for the purpose of avoiding overutilization of
community support services and overexpenditure of funds for these services, the
Department of Health and Human Services shall immediately conduct an in‑depth
evaluation of the use and cost of community support services to identify
existing and potential areas of overutilization and overexpenditure. The
Department shall also adopt or revise as necessary management policies and
practices that will ensure that at a minimum:"
NON‑MEDICAID REIMBURSEMENT CHANGES
SECTION 10.16. Section 10.5 of S.L. 2007‑323 reads as rewritten:
"SECTION 10.5. Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Health and Human Services may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non‑Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one, the Department of Health and Human Services may negotiate with providers of medical services under the various Department of Health and Human Services programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes: contracts or agreements for medical services and purchases of medical equipment and other medical supplies. These negotiated rates are allowable only to meet the medical needs of its non‑Medicaid eligible patients, residents, and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs shall be as follows:
DSB Medical Eye Care 125% FPL
DSB Independent Living <55 125% FPL
DSB Independent Living 55> 200% FPL
DSB Vocational Rehabilitation 125% FPL
DVR Independent Living 125% FPL
DVR Vocational Rehabilitation 125% FPL
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:
(% 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."
ADULT CARE HOME TRAINING/TECHNICAL ASSISTANCE
SECTION 10.16A. Section 10.54(b) of S.L. 2007‑323 reads as rewritten:
"SECTION 10.54.(b) Funds appropriated in this act to the Department of Health and Human Services, Division of Health Service Regulation, for the 2007‑2008 fiscal year and the 2008‑2009 fiscal year for implementation of rated certificates for adult care homes are contingent upon enactment of Senate Bill 56, 2007 Regular Session, by the 2007 General Assembly. Funds appropriated for training and technical assistance to implement the rated certificate program shall be used to fund the development and implementation of a training and educational program by the North Carolina adult care home provider associations that will be integrated with the assessment, care planning, training, and quality improvement initiative being coordinated and financially supported by participating adult care home providers and associations as they are developed. Providers shall not be charged a fee for receiving the training."
SECTION 10.17.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2009, according to the following schedule:
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Work First Family Assistance (Cash Assistance) $90,857,234
02. Work First County Block Grants 94,653,315
03. Work First Functional Assessment 2,721,787
04. Child Protective Services – Child Welfare
Workers for Local DSS 14,452,391
05. Work First – Boys and Girls Clubs 2,000,000
06. Work First – After‑School Services for
At‑Risk Children 1,549,642
07. Work First – After‑School Programs for
At‑Risk Youth in Middle Schools 500,000
08. Work First – Connect, Inc. 550,000
09. Work First – Citizens Schools Program 700,000
10. Adoption Services – Special Children's
Adoption Fund 3,000,000
11. Family Violence Prevention 2,200,000
Division of Child Development
12. Subsidized Child Care Program 61,087,077
Division of Public Health
13. Teen Pregnancy Prevention Initiatives 450,000
DHHS Administration
14. Division of Social Services 995,142
15. Office of the Secretary 66,101
16. Office of the Secretary/DIRM – TANF
Automation Projects 595,541
17. Office of the Secretary/DIRM – NC FAST
Implementation 1,300,000
Transfers to Other Block Grants
Division of Child Development
18. Transfer to the Child Care and
Development Fund 84,330,900
Division of Social Services
19. Transfer to Social Services Block Grant for
Department of Juvenile Justice and Delinquency
Prevention – Support Our Students 2,749,642
20. Transfer to Social Services Block Grant for Child
Protective Services – Child Welfare Training in
Counties 2,738,827
21. Transfer to Social Services Block Grant for
Maternity Homes 838,000
22. Transfer to Social Services Block Grant for Teen
Pregnancy Prevention Initiatives 2,500,000
23. Transfer to Social Services Block Grant for County
Departments of Social Services for Children's Services 4,620,619
24. Transfer to Social Services Block Grant for
Foster Care Services 2,372,587
25. Transfer to Social Services Block Grant for
Medically Fragile Children 190,000
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $378,018,805
SOCIAL SERVICES BLOCK GRANT
Local Program Expenditures
Divisions of Social Services and Aging and Adult Services
01. County Departments of Social Services $ 28,868,189
(Transfer from TANF – $4,620,619)
02. State In‑Home Services Fund 2,101,113
03. State Adult Day Care Fund 2,155,301
04. Child Protective Services/CPS Investigative
Services – Child Medical Evaluation Program 238,321
05. Foster Care Services 2,372,587
(Transfer from TANF)
06. Child Protective Services – Child Welfare Training
for Counties 2,738,827
(Transfer from TANF)
07. Maternity Homes 838,000
(Transfer from TANF)
08. Special Children Adoption Incentive Fund 500,000
Division of Aging and Adult Services
09. Home and Community Care Block Grant (HCCBG) 1,834,077
Division of Mental Health, Developmental Disabilities, and Substance
Abuse Services
10. Mental Health Services Program 422,003
11. Developmental Disabilities Services Program 5,000,000
12. Mental Health Services – Adult and
Child/Developmental Disabilities Program/
Substance Abuse Services – Adult 3,234,601
Division of Child Development
13. Subsidized Child Care Program 3,150,000
Division of Vocational Rehabilitation
14. Vocational Rehabilitation Services – Easter Seal
Society/UCP 188,263
Division of Public Health
15. Teen Pregnancy Prevention Initiatives 2,500,000
(Transfer from TANF)
16. Services to Medically Fragile Children 290,000
DHHS Program Expenditures
Division of Aging and Adult Services
17. UNC‑CARES Training Contract 247,920
Division of Services for the Blind
18. Independent Living Program 3,633,077
Division of Facility Services
19. Adult Care Licensure Program 411,897
20. Mental Health Licensure and Certification Program 205,668
DHHS Administration
21. Division of Aging and Adult Services 675,593
22. Division of Social Services 869,058
23. Office of the Secretary/Controller's Office 135,093
24. Office of the Secretary/DIRM 82,009
25. Division of Child Development 15,000
26. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 28,860
27. Division of Facility Services 216,418
28. Office of the Secretary – NC Inter‑Agency Council
For Coordinating Homeless Programs 250,000
29. Office of the Secretary – Housing Coalition 100,000
30. Office of the Secretary 46,819
Transfers to Other State Agencies
Department of Administration
31. NC Commission of Indian Affairs In‑Home
Services for the Elderly 203,198
Department of Juvenile Justice and Delinquency Prevention
32. Support Our Students 2,749,642
(Transfer from TANF)
Transfers to Other Block Grants
Division of Public Health
33. Transfer to Preventive Health Services Block Grant for
HIV/STD Prevention and Community Planning 145,819
TOTAL SOCIAL SERVICES BLOCK GRANT $ 66,447,353
LOW‑INCOME ENERGY BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Low‑Income Energy Assistance Program (LIHEAP) $ 19,510,559
02. Crisis Intervention Program (CIP) 14,588,514
Office of the Secretary – Office of Economic Opportunity
03. Weatherization Program 6,268,946
04. Heating Air Repair & Replacement Program (HARRP) 2,923,950
Local Administration
Division of Social Services
05. County DSS Administration 2,259,757
Office of the Secretary – Office of Economic Opportunity
06. Local Residential Energy Efficiency Service
Providers – Weatherization 268,146
07. Local Residential Energy Efficiency Service
Providers – HARRP 125,067
DHHS Administration
08. Division of Social Services 219,410
09. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 7,389
10. Office of the Secretary/DIRM 245,395
11. Office of the Secretary/Controller's Office 11,211
12. Office of the Secretary/Office of Economic
Opportunity – Weatherization 268,146
13. Office of the Secretary/Office of Economic
Opportunity – HARRP 125,067
Transfers to Other State Agencies
14. Department of Administration –
N.C. State Commission of Indian Affairs 60,947
TOTAL LOW‑INCOME ENERGY BLOCK GRANT $ 46,882,504
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
Local Program Expenditures
Division of Child Development
01. Subsidized Child Care Services $146,676,063
02. Child Care Services Support – Contract 504,695
03. Subsidized Child Care Services
(TANF to CCDF) 84,330,900
DHHS Program Expenditures
Division of Child Development
04. Quality and Availability Initiatives 27,000,000
Local Administration
Division of Child Development
05. Administrative Expenses (Nondirect Subsidy
Services Support) 17,621,918
DHHS Administration
06. DCD Administrative Expenses 6,540,707
DHHS Central Management and Support
07. DHHS Central Administration – DIRM
Technical Services 749,081
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $283,423,364
MENTAL HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. Mental Health Services – Adult $ 6,854,932
02. Mental Health Services – Child 3,921,991
03. Comprehensive Treatment Service
Program 1,500,000
04. Mental Health Services – UNC School of Medicine,
Department of Psychiatry 300,000
Local Administration
05. Division of Mental Health 100,000
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 12,676,923
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
Local Program Expenditures
01. Substance Abuse Services – Adult $ 21,938,080
02. Substance Abuse Services – ADATC
One‑Time Expenses 70,000
03. Substance Abuse Treatment Alternative for
Women 8,069,524
04. Substance Abuse – HIV and IV Drug 5,116,378
05. Substance Abuse Prevention – Child 7,186,857
06. Substance Abuse Services – Child 4,940,500
Division of Public Health
07. Risk Reduction Projects 633,980
08. Aid‑to‑Counties 209,576
09. Maternal Health 37,779
DHHS Administration
10. Division of Mental Health 500,000
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 48,702,674
MATERNAL AND CHILD HEALTH BLOCK GRANT
Local Program Expenditures
Division of Public Health
01. Children's Health Services 7,415,569
02. Women's Health 7,504,019
03. Oral Health 35,951
DHHS Program Expenditures
Division of Public Health
04. Children's Health Services 1,654,428
05. Women's Health 121,285
06. State Center for Health Statistics 120,364
07. Quality Improvement in Public Health 14,646
08. Health Promotion 84,843
09. Office of Minority Health 51,562
10. Immunization Program – Vaccine Distribution 310,667
DHHS Administration
11. Division of Public Health Administration 631,966
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 17,945,300
PREVENTIVE HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. NC Statewide Health Promotion $1,755,653
02. Services to Rape Victims 197,112
03. HIV/STD Prevention and Community Planning
(Transfer from Social Services Block Grant) 145,819
DHHS Program Expenditures
04. NC Statewide Health Promotion 1,508,889
05. Oral Health 70,000
06. State Laboratory of Public Health 16,600
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $3,694,073
COMMUNITY SERVICES BLOCK GRANT
Local Program Expenditures
Office of Economic Opportunity – Community Services Block Grant
01. Community Action Agencies $ 16,062,653
02. Limited Purpose Agencies 892,370
DHHS Administration
03. Office of Economic Opportunity 892,369
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 17,847,392
GENERAL PROVISIONS
SECTION 10.17.(b) Information to Be Included in Block Grant Plans. – The Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department, and each plan shall include the following:
(1) A delineation of the proposed allocations by program or activity, including State and federal match requirements.
(2) A delineation of the proposed State and local administrative expenditures.
(3) An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.
(4) A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.
(5) A projection of current year expenditures by program or activity.
(6) A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.
SECTION 10.17.(c) Changes in Federal Fund Availability. – If the Congress of the United States increases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall allocate the increase proportionally across the program and activity appropriations identified for that Block Grant in this section. In allocating an increase in federal fund availability, the Department shall not propose funding for new programs or activities not appropriated in this section or increase State administrative expenditures.
If the Congress of the United States decreases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall reduce State administration by at least the percentage of the reduction in federal funds. After determining the State administration, the remaining reductions shall be allocated proportionately across the program and activity appropriations identified for that Block Grant in this section. In allocating a decrease in federal fund availability, the Department shall not eliminate the funding for a program or activity appropriated in this section unless it is related to the State administration.
Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 10.17.(d) All changes to the budgeted allocations to the Block Grants administered by the Department of Health and Human Services that are not specifically addressed in this section shall be approved by the Office of State Budget and Management, and a report shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to implementing the changes. All changes to the budgeted allocations to the Block Grant shall be reported immediately 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. This subsection does not apply to Block Grant changes caused by legislative salary increases and benefit adjustments.
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF)
SECTION 10.17.(e) The sum of nine hundred ninety‑five thousand one hundred forty‑two dollars ($995,142) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2008‑2009 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 10.17.(f) The sum of two million two hundred thousand dollars ($2,200,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2008‑2009 fiscal year shall be used to provide domestic violence services to Work First recipients. These funds shall be used to provide domestic violence counseling, support, and other direct services to clients. These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts. The Division of Social Services may use up to seventy‑five thousand dollars ($75,000) in TANF funds to support one administrative position within the Division of Social Services to implement this subsection.
Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2008. 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, 2008, 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, 2008. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
SECTION 10.17.(g) The sum of one million five hundred forty‑nine thousand six hundred forty‑two dollars ($1,549,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2008‑2009 fiscal year 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, school dropout, and gang participation. The Department shall award grants to community‑based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to fund one position within the Division of Social Services to coordinate at‑risk after‑school programs and shall not be used for other State administration.
SECTION 10.17.(h) The sum of fourteen million four hundred fifty‑two thousand three hundred ninety‑one dollars ($14,452,391) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2008‑2009 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 postadoption services for eligible families.
SECTION 10.17.(i) The sum of three million dollars ($3,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2008‑2009 fiscal year shall be used in accordance with Section 10.31 of S.L. 2007‑323. 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 10.17.(j) The sum of one million three hundred thousand dollars ($1,300,000) in this section appropriated to the Department of Health and Human Services in the TANF Block Grant for the 2008‑2009 fiscal year shall be used to implement N.C. FAST (North Carolina Families Accessing Services through Technology). The N.C. FAST program involves the entire automation initiative through which families access services and local departments of social services deliver benefits, supervised by the Department of Health and Human Services, Divisions of Social Services, Aging and Adult Services, Medical Assistance, and Child Development. The statewide automated initiative shall be implemented in compliance with federal regulations in order to ensure federal financial participation in the project. The Department of Health and Human Services shall report on its compliance with this subsection 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 no later than January 1, 2009.
SECTION 10.17.(k) The sum of five hundred thousand dollars ($500,000) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2008‑2009 fiscal year shall be used to expand after‑school programs for at‑risk children attending middle school. The Department shall develop and implement a grant program to award funds to community‑based programs demonstrating the capacity to reach children at risk of teen pregnancy, school dropout, and gang participation. These funds shall not be used for training or administration at the State level. All funds shall be distributed to community‑based programs, focusing on those communities where similar programs do not exist in middle schools.
SECTION 10.17.(l) In implementing the TANF Block Grant, the Department of Health and Human Services shall review policies, programs, and initiatives to ensure that they support men in their role as fathers and strengthen fathers' involvement in their children's lives. The Department shall encourage county departments of social services to ensure their Work First programs emphasize responsible fatherhood and increased participation by noncustodial fathers.
SECTION 10.17.(m) The sum of five hundred fifty thousand dollars ($550,000) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for the 2008‑2009 fiscal year shall be transferred to Connect, Inc. Connect, Inc., shall report on the number of people served and the services received as a result of the receipt of funds. The report shall contain expenditure data, including the amount of funds used for administration and direct training. The report shall also include the number of people who have been employed as a direct result of services provided by Connect, Inc., including the length of employment in the new position. The Department of Health and Human Services shall evaluate the program and ensure that services provided are not duplicative of local employment security commissions in the nine counties served by Connect, Inc. The evaluation report shall be submitted 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 no later than May 1, 2008.
SECTION 10.17.(n) The sum of two million dollars ($2,000,000) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for Boys and Girls Clubs for the 2008‑2009 fiscal year 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 gang participation, school dropout, and teen pregnancy rates. The Department shall encourage and facilitate collaboration between the Boys and Girls Clubs and Support Our Students, Communities in Schools, and similar programs to submit joint applications for the funds if appropriate.
SECTION 10.17.(o) The Department of Health and Human Services, Division of Social Services, shall continue implementing county demonstration grants that began in the 2006‑2007 fiscal year. The county demonstration grants may be awarded for up to three years with all projects ending no later than the end of fiscal year 2009‑2010. The purpose of the county demonstration grants is to identify best practices that can be used by counties to improve the work participation rates. The Division of Social Services is authorized to establish two time‑limited positions to manage the grant award process and monitor the demonstration projects through fiscal year 2009‑2010.
Funding provided under the county demonstration grants shall not be used to supplant local funds, and counties shall be required to maintain the current level of effort and funding for the Work First program.
The Department of Health and Human Services, Division of Social Services, shall report on the status of county demonstration grants implemented pursuant to this subsection 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 no later than February 1, 2009.
SECTION 10.17.(p) The sum of seven hundred thousand dollars ($700,000) appropriated under this section in the TANF block grant to the Department of Health and Human Services, Division of Social Services, for the 2008‑2009 fiscal year shall be used to implement a Citizens Schools Program, a three‑year urban/rural dropout prevention pilot program in the Durham and Vance county public school systems. The Citizens Schools Program provides high‑quality, extended learning time for middle school students in schools with high percentages of minority students, poor students, or both, and students with other risk factors for dropping out. Students in the Citizens Schools Program receive after‑school instruction in groups of eight to 12 students per adult. The instruction includes: (i) 60 minutes of daily academic support with strong study skills and critical thinking components, (ii) four 11‑week apprenticeships, using volunteers as leaders focusing on 21st century skills, and (iii) career exploration and choice time to further explore a variety of interests. Citizens Schools Team Leaders contact each student's family by telephone at least every two weeks to discuss the student's participation and progress.
North Carolina State University shall evaluate the program to ensure that the program is effectively helping students stay in school and successfully graduate in their four‑year cohort. The evaluation shall include a long‑term study of the graduation cohort rate increase as well as short‑term measures, including attendance, grade point average, discipline, the program dropout rate, credits earned, and postsecondary education matriculation.
SOCIAL SERVICES BLOCK GRANT
SECTION 10.17.(q) Social Services Block Grant funds appropriated to the North Carolina Inter‑Agency Council for Coordinating Homeless Programs and the North Carolina Housing Coalition are exempt from the provisions of 10A NCAC 71R .0201(3).
SECTION 10.17.(r) The sum of two million seven hundred forty‑nine thousand six hundred forty‑two dollars ($2,749,642) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2008‑2009 fiscal year shall be used to support the existing Support Our Students program, including gang prevention, 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 10.17.(s) The sum of two million seven hundred thirty‑eight thousand eight hundred twenty‑seven dollars ($2,738,827) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2008‑2009 fiscal year 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 Master's Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.
(3) Provide training for residential child‑caring facilities.
(4) Provide for various other child welfare training initiatives.
SECTION 10.17.(t) The sum of eight hundred thirty‑eight thousand dollars ($838,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services for the 2008‑2009 fiscal year shall be used to purchase services at maternity homes throughout the State.
SECTION 10.17.(u) The sum of two million three hundred seventy‑two thousand five hundred eighty‑seven dollars ($2,372,587) appropriated in this section in the Social Services Block Grant for child‑caring agencies for the 2008‑2009 fiscal year shall be allocated to the State Private Child‑Caring Agencies Fund.
SECTION 10.17.(v) The sum of two hundred ninety thousand dollars ($290,000) appropriated in this section in the Social Services Block Grant for services to medically fragile children for the 2008‑2009 fiscal year shall be used for the child care component of pediatric day treatment centers for medically fragile children.
SECTION 10.17.(w) The Department of Health and Human Services is authorized, subject to the approval of the Office of State Budget and Management, to transfer Social Services Block Grant funding allocated for departmental administration between divisions that have received administrative allocations from the Social Services Block Grant.
LOW‑INCOME HOME ENERGY ASSISTANCE PROGRAM
SECTION 10.17.(x) Additional emergency contingency funds received may be allocated for Energy Assistance Payments or Crisis Intervention Payments without prior consultation with the Joint Legislative Commission on Governmental Operations. Additional funds received shall be reported to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division upon notification of the award. The Department of Health and Human Services shall not allocate funds for any activities, including increasing administration, other than assistance payments, without prior consultation with the Joint Legislative Commission on Governmental Operations.
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
SECTION 10.17.(y) The sum of no more than 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 for the 2008‑2009 fiscal year may be used for the operations of the Medical Child Care Pilot.
SECTION 10.17.(z) 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 10.17.(aa) 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.
MENTAL HEALTH BLOCK GRANT
SECTION 10.17.(bb) 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 2008‑2009 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 2008‑2009 fiscal year shall be used to continue a Comprehensive Treatment Services Program for Children in accordance with Section 10.10 of S.L. 2007‑323.
SECTION 10.17.(cc) Of the three hundred thousand dollars ($300,000) appropriated for the UNC School of Medicine, Department of Psychiatry, for the 2008‑2009 fiscal year, the sum of two hundred thousand dollars ($200,000) shall be used to: (i) expand the Department of Psychiatry's Schizophrenia Treatment and Evaluation Program (STEP) into a community setting, (ii) provide training for the next generation of psychiatrists, social workers, psychologists, and nurses to address the current workforce crisis, (iii) provide statewide training and consultation in evidence‑based practices, and (iv) provide ongoing support for the STEP and OASIS clinics.
Of the three hundred thousand dollars ($300,000) appropriated for the UNC School of Medicine, Department of Psychiatry, for the 2008‑2009 fiscal year, the sum of one hundred thousand dollars ($100,000) shall be used to provide bridge funding for OASIS, a statewide program providing targeted, intense interventions to individuals in the early stages of schizophrenia when chronicity and disability may be most preventable. Funds shall be used to support OASIS as foundation support ends, allowing OASIS to transition to funding through private insurance, Medicaid, State appropriations for Mental Health, Developmental Disabilities, and Substance Abuse Services, and other funding streams.
MATERNAL AND CHILD HEALTH BLOCK GRANT
SECTION 10.17.(ee) 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 2008‑2009 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.
SECTION 10.17.(ff) The Department of Health and Human Services shall ensure that there will be follow‑up testing in the Newborn Screening Program.
PART XI. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
STUDY CERTAIN DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES FEES
SECTION 11.1.(a) The Department of Agriculture and Consumer Services, in consultation with the Office of State Budget and Management and the Fiscal Research Division, shall study the following:
(1) The feasibility and advisability of increasing the fees imposed by either the Board of Agriculture or the Department regarding services provided by the Rollins Laboratory System.
(2) The feasibility and advisability of establishing fees for soil testing services provided by the Agronomics Division of the Department.
(3) The feasibility and advisability of using alternative sources of funding for the "Agricultural Review", an agriculture newsletter published by the Department, including charging fees for advertisements or classified advertisements and soliciting private sponsors for the newsletter.
SECTION 11.1.(b) In the course of the study under subsection (a) of this section, the Department may consider other fees imposed by either the Board of Agriculture or the Department, the administrative costs associated with these fees, and current usage rates for various services provided by the Department.
SECTION 11.1.(c) No later than March 1, 2009, the Department of Agriculture and Consumer Services shall report the results of the study under this section, including any recommendations or legislative proposals, to the Chairs of the House of Representatives and Senate Appropriations Subcommittees on Natural and Economic Resources.
PART XII. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
BERNARD ALLEN MEMORIAL EMERGENCY DRINKING WATER FUND AMENDMENTS.
SECTION 12.1. G.S. 87‑98 reads as rewritten:
"§ 87‑98. Bernard Allen Memorial Emergency Drinking Water Fund.
(a) The Bernard Allen Memorial Emergency Drinking Water Fund is established under the control and direction of the Department. The Fund shall be a nonreverting, interest‑bearing fund consisting of monies appropriated by the General Assembly or made available to the Fund from any other source and investment interest credited to the Fund.
(b) The Fund may be used to pay for notification, to the extent practicable, of persons aged 18 and older who reside in any dwelling unit, and the senior official in charge of any business, at which drinking water is supplied from a private drinking water well or improved spring that is located within 1,500 feet of, and at risk from, known groundwater contamination. The senior official in charge of the business shall take reasonable measures to notify all employees of the business of the groundwater contamination, including posting a notice of the contamination in a form and at a location that is readily accessible to the employees of the business. The Fund may also be used by the Department to pay the costs of testing of private drinking water wells and improved springs for suspected contamination up to once every three years upon request by a person who uses the well and for the temporary or permanent provision of alternative drinking water supplies to persons whose drinking water well or improved spring is contaminated. Under this subsection, an alternative drinking water supply includes the repair or replacement of a contaminated well or the connection to a public water supply.
(c) The Department shall
disburse monies from the Fund based on financial need and on the risk to public
health posed by groundwater contamination and shall give priority to the
provision of services under this section to instances when an alternative
source of funds is not available. The Fund shall not be used for remediation
of groundwater contamination. Nothing in this section expands, contracts, or
modifies the obligation of responsible parties under Article 9 or 10 of Chapter
130A of the General Statutes, this Article, or Article 21A of this Chapter to
assess contamination, identify receptors, or remediate groundwater or soil
contamination. The Fund shall not be used to provide alternative water
supply to households with incomes greater than three hundred percent (300%) of
the current federal poverty level. The Fund shall notmay be used
to provide alternative drinking water supplies unless if the
Department determines that the concentration of one or more contaminants in
the private drinking water well or improved spring exceeds the federal Maximum
Contaminant Levelmaximum contaminant level, or the federal drinking
water action level as defined in 40 Code of Federal Regulations § 141.1 through
§ 141.571 (1 July 2006)2007) and 40 Code of Federal Regulations §
143.3 (1 July 2006).2007). For a contaminant for which a federal maximum
contaminant level or drinking water action level has not been established, the
State groundwater standard established by the Environmental Management
Commission for the concentration of that contaminant shall be used to determine
whether the Fund may be used to provide alternative drinking water supplies. The
Fund may also be used to provide alternative drinking water supplies as
provided in this section if the Department determines that the concentration of
one or more contaminants in a private drinking water well is increasing over
time and that there is a significant risk that the concentration of a
contaminant will exceed the federal maximum contaminant level or drinking water
action level, or the State groundwater standard. A determination of the
concentration of a contaminant shall be based on a sample of water collected
from the private drinking water well within the past 12 months. The Fund
shall not be used to provide temporary water supplies in any calendar quarter
until all needs for permanent replacement water supplies that have been
identified in that calendar quarter have been met through hookups to public
water supplies, repair, or replacement of contaminated wells.
(c1) In disbursing
monies from the Fund, preference shall be given to providingthe
Department shall give preference to provision of permanent replacement
water supplies by connection to public water supplies and repair or replacement
of contaminated wells over the provision of temporary water supplies. In
providing alternative drinking water supplies, the Department shall give
preference to connection to a public water supply system or to construction of
a new private drinking water well over the use of a filtration system if the
Department determines that the costs of periodic required maintenance of the
filtration system would be cost‑prohibitive for users of the alternative
drinking water supply.
(c2) If the Department provides an alternative drinking water supply by extension of a waterline, the Department may disburse from the Fund no more than ten thousand dollars ($10,000) per household or other service connection. No more than one‑third of the total cost of the project may be paid from the Fund. The Department may combine monies from the Fund with monies from other sources in order to pay the total cost of the project.
(c3) The Fund shall be used to provide alternative drinking water supplies only if the Department determines that the person or persons who are responsible for the contamination of the private drinking water well is or are not financially viable or cannot be identified or located and if the Department determines that one of the following applies:
(1) The contamination of the private drinking water well is naturally occurring.
(2) The owner of the property on which the private drinking water well is located did not cause or contribute to the contamination or control the source of the contamination.
(3) The source of the contamination is the application or disposal of a hazardous substance or pesticide that occurred without the consent of the owner of the property on which the private drinking water well is located.
(c4) The Department may use up to one hundred thousand dollars ($100,000) of the monies in the Fund to pay the personnel and other direct costs associated with the implementation of this section.
(c5) The Fund shall not be used for remediation of groundwater contamination.
(c6) Nothing in this section expands, contracts, or modifies the obligation of responsible parties under Article 9 or 10 of Chapter 130A of the General Statutes, this Article, or Article 21A of this Chapter to assess contamination, identify receptors, or remediate groundwater or soil contamination.
(d) The Department shall establish criteria by which the Department is to evaluate applications and disburse monies from this Fund and may adopt any rules necessary to implement this section.
(e) The Department, in consultation with the Commission for Public Health and local health departments, shall report no later than 1 October of each year to the Environmental Review Commission, the House of Representatives and Senate Appropriations Subcommittees on Natural and Economic Resources, and the Fiscal Research Division of the General Assembly on the implementation of this section. The report shall include the purpose and amount of all expenditures from the Fund during the prior fiscal year, a discussion of the benefits and deficiencies realized as a result of the section, and may also include recommendations for any legislative action."
INACTIVE HAZARDOUS WASTE SITES REPORT REQUIREMENT
SECTION 12.1A.(a) G.S. 130A‑310.2 reads as rewritten:
"§ 130A‑310.2. Inactive Hazardous Waste Sites Priority List.
(a) No later than six months after July 1, 1987, the Commission shall develop a system for the prioritization of inactive hazardous substance or waste disposal sites based on the extent to which such sites endanger the public health and the environment. The Secretary shall apply the prioritization system to the inventory of sites to create and maintain an Inactive Hazardous Waste Site Priority List, which shall rank all inactive hazardous substance or waste disposal sites in decreasing order of danger. This list shall identify the location of each site and the type and amount of hazardous substances or waste known or believed to be located on the site. The first such list shall be published within two years after July 1, 1987, with subsequent lists to be published at intervals of not more than two years thereafter. The Secretary shall notify owners, operators, and responsible parties of sites listed on the Inactive Hazardous Waste Sites Priority List of their ranking on the list. The Inactive Hazardous Sites Priority List shall be used by the Department in determining budget requests and in allocating any State appropriation which may be made for remedial action, but shall not be used so as to impede any other action by the Department, or any remedial or other action for which funds are available.
(b) No later than January 1 of each year, the Department shall report to each member of the General Assembly who has an inactive hazardous substance or waste disposal site in the member's district. This report shall include the location of each inactive hazardous substance or waste disposal site in the member's district, the type and amount of hazardous substances or waste known or believed to be located on each of these sites, the last action taken at each of these sites, and the date of that last action."
SECTION 12.1A.(b) The initial report under G.S. 130A‑310.2(b), as amended by this section, shall be due no later than January 1, 2009.
Inactive Hazardous Waste Sites Cleanup Funds
SECTION 12.5. There is appropriated from the Dry Cleaning Solvent Cleanup Fund to the Department of Environment and Natural Resources the sum of four hundred thousand dollars ($400,000) for the 2008‑2009 fiscal year to be used, notwithstanding G.S. 143‑215.104C, to assess and remove contamination from inactive hazardous waste sites throughout the State and to provide an alternative drinking water supply to any person whose water supply was contaminated by an inactive hazardous waste site.
Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund
SECTION 12.6.(a) There is appropriated from the Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund to the Department of Environment and Natural Resources the sum of seven hundred ninety‑one thousand six hundred fourteen dollars ($791,614) for the 2008‑2009 fiscal year. Notwithstanding G.S. 143‑215.94B, these funds shall be used to establish and support 11 positions within the underground storage tank program as follows:
(1) $92,643 shall be used to establish and support one Environmental Program Supervisor II position.
(2) $615,953 shall be used to establish and support nine Environmental Specialist positions.
(3) $83,018 shall be used to establish and support one Environmental Engineer I position.
SECTION 12.6.(b) The positions under subsection (a) of this section shall be used to increase compliance inspection frequency for the underground storage tank program within the Department and to conduct operator training for those underground storage tank systems that are subject to regulation under Part 2A or Part 2B of Article 21A of Chapter 143 of the General Statutes. It is the intent of the General Assembly that funds for these positions under this section are recurring funds and that these funds are in addition to funds previously appropriated to the Department of Environment and Natural Resources for the 2008‑2009 fiscal year.
Funds for Pending Civil Litigation Expenses
SECTION 12.7. From funds in the I & M Air Pollution Control Account, there is appropriated the sum of seven hundred fifty thousand dollars ($750,000) for the 2008‑2009 fiscal year to the Office of State Budget and Management, Litigation Reserve. Notwithstanding G.S. 143‑215.3A, these funds shall be used by the Department of Justice solely for expenses related to either ex rel. Cooper v. Tennessee Valley Authority, No. 1:06CV20 (W.D.N.C. filed Jan. 30, 2006) or South Carolina v. North Carolina, No. 220138 ORG (U.S. Sup. Ct. filed June 7, 2007). Any of these funds that remain unused on June 30, 2009, shall revert to the I & M Air Pollution Control Account.
SECTION 12.8.(a) G.S. 143‑214.7 reads as rewritten:
"§ 143‑214.7. Stormwater runoff rules and programs.
…
(d3) The Department shall establish a stormwater pilot program that exempts development in coastal counties otherwise subject to a stormwater permitting program under this section from the requirement to obtain a permit if the development includes a stormwater control system that meets the following requirements:
(1) The control system is an infiltration system, wet detention pond, bioretention system, constructed stormwater wetland, sand filter, or alternative stormwater management system that meets the General Engineering Design Criteria established by the Department pursuant to its rule‑making authority.
(2) The control system is designed to store, control, and treat the stormwater runoff from all surfaces generated by three and one‑half inches of rainfall.
…."
SECTION 12.8.(b) G.S. 143‑215.6A reads as rewritten:
"§ 143‑215.6A. Enforcement procedures: civil penalties.
(a) A civil penalty of not more than twenty‑five thousand dollars ($25,000) may be assessed by the Secretary against any person who:
…
(12) Violates or fails to act in accordance with G.S. 143‑214.7(d3).
…."
Establish NC Conservation Easement Endowment Fund
SECTION 12.9.(a) Article 18 of Chapter 113A of the General Statutes is amended by adding a new section to read:
"§ 113A‑253.2. North Carolina Conservation Easement Endowment Fund.
(a) The North Carolina Conservation Easement Endowment Fund is established as a special fund in the Office of the State Treasurer. The principal of the Endowment Fund shall consist of a portion of grant funds transferred by the Trustees to the Endowment Fund from the Clean Water Management Trust Fund for stewardship activities related to projects for conservation easements funded from the Clean Water Management Trust Fund. The principal of the Endowment Fund may also consist of any proceeds of any gifts, grants, or contributions to the State that are specifically designated for inclusion in the Endowment Fund and any investment income that is not used in accordance with subsection (b) of this section. The State Treasurer shall hold the Endowment Fund separate and apart from all other moneys, funds, and accounts. The State Treasurer shall invest the assets of the Endowment Fund in accordance with the provisions of G.S. 147‑69.2 and G.S. 147‑69.3. The State Treasurer shall disburse the endowment investment income only upon the written direction of the Chair of the Board of Trustees. No expenditure or disbursement shall be made from the principal of the Endowment Fund.
(b) The Trustees may authorize the disbursement of the endowment investment income only for activities related to stewardship of conservation easements owned by the State."
SECTION 12.9.(b) G.S. 147‑69.2(a) is amended by adding a new subdivision to read:
"(17i) The North Carolina Conservation Easement Endowment Fund."
Yadkin Power Authority Creation Study Commission
SECTION 12.10.(a) Commission Created. – The Yadkin Power Authority Creation Study Commission (Study Commission) is created.
SECTION 12.10.(b) Membership. – The Study Commission shall consist of 16 members as follows:
(1) The Governor or the Governor's designee.
(2) A member of the Senate, appointed by the President Pro Tempore of the Senate.
(3) A member of the House of Representatives, appointed by the Speaker of the House of Representatives.
(4) The Chairman of the North Carolina Utilities Commission or the Chairman's designee.
(5) A representative of the Centralina Council of Governments, appointed by the Centralina Council of Governments.
(6) A representative of the County Board of Commissioners of each of the following nine counties: Anson, Cabarrus, Davidson, Iredell, Montgomery, Randolph, Rowan, Stanly, and Union; each appointed by its Board of Commissioners.
(7) A representative of the City of Albemarle, appointed by the City's governing body.
(8) A representative of the City of Salisbury, appointed by the City's governing body.
SECTION 12.10.(c) Duties. – The Study Commission shall study whether it is feasible and desirable to establish a body corporate and politic to be known as the Yadkin Power Authority. This Study Commission shall consider and develop proposals regarding all of the following issues:
(1) Whether the Yadkin Power Authority, if created, could participate in the recapture of the hydroelectric dam license and facilities of the existing Yadkin Hydroelectric Project, including all necessary dams, powerhouses, and related project works.
(2) The process by which the Yadkin Power Authority, if created, could acquire, purchase, hold, use, lease, mortgage, sell, transfer, and dispose of any real property, personal property, or any interest in any of real or personal property, including a Federal Energy Regulatory Commission (FERC) license for the Yadkin Hydroelectric Project.
(3) Whether the Yadkin Power Authority, if created, could produce, distribute, and sell hydroelectric power for the benefit of the people of North Carolina.
SECTION 12.10.(d) Additional Duties. – The Study Commission also shall consider issues concerning governance of the Yadkin Power Authority, if created, including all of the following:
(1) Membership and terms of any Board of Directors or other governing board of the Yadkin Power Authority.
(2) The means for payment of the acquisition and maintenance of the Yadkin Hydroelectric Project.
(3) The allocation of the power from the Yadkin Hydroelectric Project.
(4) The allocation of water from the Yadkin Hydroelectric Project.
(5) The use and disposition of any net earnings of the Yadkin Power Authority.
SECTION 12.10.(e) Vacancies. – A vacancy in the membership of the Study Commission or a vacancy of a Cochair of the Study Commission resulting from the resignation of a member or otherwise shall be filled in the same manner in which the original appointment was made.
SECTION 12.10.(f) Reports. – The Study Commission shall submit an interim report to the 2009 General Assembly. The Study Commission shall make a final report to the 2011 General Assembly. Each report shall include findings and any recommendations, including, if the Study Commission recommends the creation of the Yadkin Power Authority, any legislative proposals that would assist in the creation and operation of a Yadkin Power Authority. The Study Commission shall terminate upon the filing of its final report.
SECTION 12.10.(g) Expenses of Members. – Members of the Commission shall receive per diem, subsistence, and travel allowances in accordance with G.S. 120‑3.1, 138‑5, or 138‑6, as appropriate.
SECTION 12.10.(h) Chair; Meetings. – The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate one member to serve as Cochair of the Study Commission. The Cochairs shall call the initial meeting of the Commission on or before October 15, 2008. The Study Commission shall subsequently meet upon such notice and in such manner as its members determine. A majority of the members of the Study Commission shall constitute a quorum. The Study Commission may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission.
SECTION 12.10.(i) Staff. – Upon the prior approval of the Legislative Services Commission, the Legislative Services Officer may assign professional and clerical staff and other services and supplies, as needed for the Study Commission to carry out its duties in an effective manner.
SECTION 12.10.(j) Cooperation by Government Agencies. – The Study Commission may call upon any department, agency, institution, or officer of the State or any political subdivision thereof for data or other assistance.
SECTION 12.10.(k) Current Relicensing Procedure. – Nothing in this section shall preclude the Governor or any State agency or department from taking any action necessary to protect the interest of the State in the current relicensing procedure for the Yadkin Hydroelectric Project before the Federal Energy Regulatory Commission or any related proceeding.
SECTION 12.10.(l) Action Suspended Pending Study. – The Department of Environment and Natural Resources shall not take any final action on Alcoa Power Generating, Inc.'s Section 401 Water Quality Certification for FERC Relicensing Project No. P‑2197‑0000 before the General Assembly acting upon the Study Commission's recommendations or May 1, 2009, whichever occurs sooner.
Marine Fisheries Funds for the Fishery Resource Grant Program
SECTION 12.11. Of the funds appropriated in this act to the Department of Environment and Natural Resources for the Division of Marine Fisheries for the Fishery Resource Grant Program established under G.S. 113‑200, the sum of one hundred forty‑six thousand three hundred twelve dollars ($146,312) for the 2008‑2009 fiscal year shall be used for river herring research in the Department. The remaining funds appropriated in this act to the Department for the Fishery Resource Grant Program for the 2008‑2009 fiscal year shall be used for research related to the Sea Grant College Program only and shall not be used for any other purpose.
Study Adding Area Surrounding Rutherford Trace to State Parks System
SECTION 12.12. The Division of Parks and Recreation of the Department of Environment and Natural Resources shall study the feasibility and the desirability of acquiring land and establishing a State park for inclusion in the State Parks System on property surrounding Rutherford Trace in McDowell County. The study shall include estimates of the cost of purchasing the land and the costs of developing and operating the proposed State park. The Division shall report its findings and recommendations, including any legislative proposals, to the Environmental Review Commission and to the Chairs of the House of Representatives and Senate Appropriations Subcommittees on Natural and Economic Resources no later than February 1, 2009.
Conservation Grant Fund Investments
SECTION 12.13. G.S. 147‑69.2(a) is amended by adding a new subdivision to read:
"(17j) The Conservation Grant Fund."
PART XIII. DEPARTMENT OF COMMERCE
SECTION 13.1. Section 13.1 of S.L. 2007‑323 reads as rewritten:
"SECTION 13.1.(a) Of
the funds appropriated in this act to the One North Carolina Fund for the 2007‑20082008‑2009
fiscal year, the Department of Commerce may use up to three hundred thousand
dollars ($300,000) to cover its expenses in administering the One North
Carolina Fund and other economic development incentive grant programs during
the 2007‑20082008‑2009 fiscal year.
SECTION 13.1.(b) Of the funds appropriated in this act to the One North Carolina Fund for the 2007‑2008 fiscal year, the sum of six hundred fifty thousand dollars ($650,000) shall be transferred to the Department of Environment and Natural Resources, Division of Information Technology Services, for the development of a Tier II hazardous chemicals inventory database and Web‑based access application.
SECTION 13.1.(c) If any One North Carolina funds that have been previously awarded and disbursed are recovered by the Department of Commerce during the 2007‑2008 fiscal year, the Department of Commerce may use up to one million dollars ($1,000,000) of the recovered funds to supplement the Department's budget for statewide economic development marketing and business assistance, including continued development and maintenance of the Department's Web site, development of software and systems to improve service to North Carolina businesses, and the promotion of North Carolina nationally and internationally as a location for business growth and expansion through advertising, events‑related marketing, and hosting international economic development conferences. Funds recovered by the Department of Commerce under this subsection in the 2007‑2008 fiscal year that are unencumbered and unexpended as of June 30, 2008, may be used by the Department in the 2008‑2009 fiscal year for Client Relationship Management software and to upgrade the building and sites database and website for the Certified Sites Program."
SECTION 13.2. Of the funds appropriated in this act to the NC Green Business Fund for the 2008‑2009 fiscal year, the Department of Commerce may use up to fifty thousand dollars ($50,000), if necessary, to cover the Department's expenses in administering the NC Green Business Fund.
CIAA basketball tournament tourism and marketing
SECTION 13.2A. Of the funds available to the Tourism, Film, and Sports Development Division of the Department of Commerce, the sum of five hundred thousand dollars ($500,000) for fiscal year 2008‑2009 shall be used to support marketing and tourism promotion for the Central Intercollegiate Athletic Association Tournament to be held in Charlotte February 23‑28, 2009.
WELCOME/VISITOR CENTER CONSTRUCTION
SECTION 13.3. S.L. 2007‑356 reads as rewritten:
"SECTION 1. The Department of Commerce and the Department of Transportation shall consult with the Joint Legislative Commission on Governmental Operations and the House and Senate Appropriations Subcommittees on Natural and Economic Resources before beginning the design or construction of any new welcome center or visitor center buildings.
"SECTION 2. The Department of Commerce and the Department of Transportation shall immediately cease the planning, design, or construction of any new welcome center buildings in Randolph County and shall not resume the planning, design, or construction of any new welcome center buildings in that county before consulting with the Joint Legislative Commission on Governmental Operations and the House and Senate Appropriations Subcommittees on Natural and Economic Resources.
"SECTION 3. Nothing in
this act shall be interpreted to prohibit or restrict the Department of
Transportation from constructing visitor center buildings in Randolph County
and Wilkes County that were in the planning, design, or construction phase
prior to the effective date of this act. The Department of Commerce shall
operate the Randolph County visitor center with funding sources consistent with
the existing nine welcome centers, excluding use of funds from the Special Registration
Plate Account and the Highway Fund."
WANCHESE SEAFOOD INDUSTRIAL PARK/OREGON INLET FUNDS
SECTION 13.4. Section 13.3A of S.L. 2007‑323 reads as rewritten:
"SECTION 13.3A.(a) Funds
appropriated to the Department of Commerce for the 2006‑20072007‑2008
fiscal year for the Wanchese Seafood Industrial Park that are unexpended and
unencumbered as of June 30, 2007,June 30, 2008, shall not revert
to the General Fund on June 30, 2007,June 30, 2008, but shall
remain available to the Department to be expended by the Wanchese Seafood
Industrial Park for operations, maintenance, repair, and capital improvements
in accordance with Article 23C of Chapter 113 of the General Statutes. These
funds shall be in addition to funds available to the North Carolina Seafood
Industrial Park Authority for operations, maintenance, repair, and capital
improvements under Article 23C of Chapter 113 of the General Statutes.
"SECTION 13.3A.(b)
Funds appropriated to the Department of Commerce for the 2006‑20072007‑2008
fiscal year for the Oregon Inlet Project that are unexpended and unencumbered
as of June 30, 2007,June 30, 2008, shall not revert to the
General Fund on June 30, 2007,June 30, 2008, but shall remain
available to the Department to be expended by the Wanchese Seafood Industrial
Park for securing adequate channel maintenance of the Oregon Inlet and for
operations, maintenance, repair, and capital improvements in accordance with
Article 23C of Chapter 113 of the General Statutes. These funds shall be in
addition to funds available to the North Carolina Seafood Industrial Park
Authority for operations, maintenance, repair, and capital improvements under
Article 23C of Chapter 113 of the General Statutes.
"SECTION 13.3A.(c)
This section becomes effective June 30, 2007.June 30, 2008."
SECTION 13.5.(a) Appropriations from federal block grant funds are made for fiscal year ending June 30, 2009, 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. Small Business/Entrepreneurship 1,000,000
06. Community Revitalization 13,000,000
07. State Technical Assistance 450,000
08. Housing Development 1,500,000
09. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT – 2009 Program Year $ 45,000,000
SECTION 13.5.(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 13.5.(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 13.5.(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 one million dollars ($1,000,000) 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; eight million seven hundred ten thousand dollars ($8,710,000) may be used for Economic Development; up to one million dollars ($1,000,000) may be used for Small Business/Entrepreneurship; not less than thirteen million dollars ($13,000,000) shall be used for Community Revitalization; up to four hundred fifty thousand dollars ($450,000) may be used for State Technical Assistance; up to one million five hundred thousand dollars ($1,500,000) 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 13.5.(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 13.5.(f) The Department of Commerce shall consult with the Joint Legislative Commission on Governmental Operations prior to reallocating Community Development Block Grant Funds. Notwithstanding the provisions of this subsection, whenever the Director of the Budget finds that:
(1) A reallocation is required because of an emergency that poses an imminent threat to public health or public safety, the Director of the Budget may authorize the reallocation without consulting the Commission. The Department of Commerce shall report to the Commission on the reallocation no later than 30 days after it was authorized and shall identify in the report the emergency, the type of action taken, and how it was related to the emergency.
(2) The State will lose federal block grant funds or receive less federal block grant funds in the next fiscal year unless a reallocation is made. The Department of Commerce shall provide a written report to the Commission on the proposed reallocation and shall identify the reason that failure to take action will result in the loss of federal funds. If the Commission does not hear the issue within 30 days of receipt of the report, the Department may take the action without consulting the Commission.
EMPLOYMENT SECURITY COMMISSION FUNDS
SECTION 13.6. Section 13.4 of S.L. 2007‑323 reads as rewritten:
"SECTION 13.4.(a)
Funds from the Employment Security Commission Reserve Fund shall be available
to the Employment Security Commission of North Carolina to use as collateral to
secure federal funds and to pay the administrative costs associated with the
collection of the Employment Security Commission Reserve Fund surcharge. The
total administrative costs paid with funds from the Reserve in the 2007‑20082008‑2009
fiscal year shall not exceed two million five hundred thousand dollars
($2,500,000).
"SECTION 13.4.(b) There
is appropriated from the Employment Security Commission Reserve Fund to the
Employment Security Commission of North Carolina the sum of seven million
three hundred thousand dollars ($7,300,000)twenty million dollars
($20,000,000) for the 2007‑20082008‑2009 fiscal
year to be used for the following purposes:
(1) Seven million dollars
($7,000,000)Nineteen million seven hundred thousand dollars ($19,700,000)
for the operation and support of local ESC offices.
(2) Two hundred thousand dollars ($200,000) for the State Occupational Information Coordinating Committee to develop and operate an interagency system to track former participants in State education and training programs.
(3) One hundred thousand dollars ($100,000) to maintain compliance with Chapter 96 of the General Statutes, which directs the Commission to employ the Common Follow‑Up Management Information System to evaluate the effectiveness of the State's job training, education, and placement programs.
"SECTION 13.4.(c)
There is appropriated from the Employment Security Commission Reserve Fund to
the Employment Security Commission of North Carolina an amount not to exceed two
million five hundred thousand dollars ($2,500,000)one million dollars
($1,000,000) for the 2007‑20082008‑2009 fiscal
year to fund State initiatives not currently funded through federal grants.
"SECTION 13.4.(d) There
is appropriated from the Employment Security Commission Reserve Fund to the
Employment Security Commission of North Carolina an amount not to exceed three
hundred fifty thousand dollars ($350,000) for the 2007‑20082008‑2009
fiscal year to allow the Commission to continue to work with Connect, Inc., to
provide dislocated workers with assistance in obtaining health care benefits,
receiving vocational training, and securing employment.
"SECTION 13.4.(e) This
section becomes effective July 1, 2007.July 1, 2008."
NC WINE AND GRAPE GROWERS COUNCIL/additional funds for research and development
SECTION 13.6A.(a) G.S. 105‑113.81A reads as rewritten:
"§ 105‑113.81A. Distribution of part of wine taxes attributable to North Carolina wine.
(a) Industry
Promotion. – The Secretary shall on a quarterly basis credit to the
Department of Commerce two hundred thousand dollars ($200,000) from the net
proceeds of the excise tax collected on unfortified wine. The Department of
Commerce shall allocate the funds received under this section subsection
to the North Carolina Wine and Grape Growers Council to be used to promote
the North Carolina grape and wine industry and to contract for research and
development services to improve viticultural and enological practices in North
Carolina.industry. Any funds credited to the Department of Commerce
under this subsection that are not expended by June 30 of any fiscal
year do not revert to the General Fund, but remain available to the Department
for the uses set forth in this section.subsection.
(b) Research and Development. – The Secretary shall on a quarterly basis credit to the Department of Commerce twenty‑five thousand dollars ($25,000) from the net proceeds of the excise tax collected on unfortified wine. The Department of Commerce shall allocate the funds received under this subsection to the North Carolina Wine and Grape Growers Council to be used to contract for research and development services to improve viticultural and enological practices in North Carolina. Any funds credited to the Department of Commerce under this subsection that are not expended by June 30 of any fiscal year do not revert to the General Fund, but remain available to the Department for the uses set forth in this subsection."
SECTION 13.6A.(b) This section becomes effective October 1, 2008.
STATE BANKING COMMISSION/GRANTS TO NONPROFIT AGENCIES to provide housing counseling and related services
SECTION 13.6B.(a) The Commissioner of Banks shall use one million dollars ($1,000,000) of the funds available to the State Banking Commission in the 2008‑2009 fiscal year to make grants to nonprofit counseling agencies in the State that are designated and approved by the North Carolina Housing Finance Agency. Grants made under this section shall be used to provide housing counseling and related services to help homeowners avoid home loss and foreclosure and to preserve home equity. Grants may also be used to provide training for counselors.
SECTION 13.6B.(b) The State Banking Commission shall report to the Joint Legislative Commission on Governmental Operations regarding the implementation of this program by February 15, 2009.
REGIONAL ECONOMIC DEVELOPMENT COMMISSION ALLOCATIONS
SECTION 13.7.(b) Funds appropriated pursuant to subsection (a) of this section shall be allocated to each regional economic development commission as follows:
(1) First, the Department shall establish each commission's allocation by determining the sum of allocations to each county that is a member of that commission. Each county's allocation shall be determined by dividing the county's development factor by the sum of the development factors for eligible counties and multiplying the resulting percentage by the amount of the appropriation. As used in this subdivision, the term "development factor" means a county's development factor as calculated under G.S. 143B‑437.08; and
(2) Next, the Department shall subtract from funds allocated to the North Carolina's Eastern Region Economic Development Partnership the sum of four hundred sixty‑nine thousand seven hundred forty dollars ($469,740) in the 2008‑2009 fiscal year, which sum represents: (i) the total interest earnings in the prior fiscal year on the estimated balance of seven million five hundred thousand dollars ($7,500,000) appropriated to the Global TransPark Development Zone in Section 6 of Chapter 561 of the 1993 Session Laws; and (ii) the total interest earnings in the prior fiscal year on loans made from the seven million five hundred thousand dollars ($7,500,000) appropriated to the Global TransPark Development Zone in Section 6 of Chapter 561 of the 1993 Session Laws; and
(3) Next, the Department shall redistribute the sum of four hundred sixty‑nine thousand seven hundred forty dollars ($469,740) in the 2008‑2009 fiscal year to the seven regional economic development commissions named in subsection (a) of this section. Each commission's share of this redistribution shall be determined according to the development factor formula set out in subdivision (1) of this subsection. This redistribution shall be in addition to each commission's allocation determined under subdivision (1) of this subsection.
SECTION 13.7.(c) No more than one hundred twenty thousand dollars ($120,000) in State funds shall be used for the annual salary of any one employee of a regional economic development commission.
SECTION 13.7.(d) The General Assembly finds that successful economic development requires the collaboration of the State, regions of the State, counties, and municipalities. Therefore, the regional economic development commissions are encouraged to seek supplemental funding from their county and municipal partners to continue and enhance their efforts to attract and retain business in the State.
RURAL CENTER/FUNDS FOR LOCAL GOVERNMENT WATER, SEWER, and Natural Gas IMPROVEMENT GRANTS
SECTION 13.8.(a) Appropriation. – Of the funds appropriated to the North Carolina Rural Economic Development Center, Inc. (Rural Center), the sum of fifty million dollars ($50,000,000) for the 2008‑2009 fiscal year shall be used to provide grants to local government units for wastewater‑related projects, public water system‑related projects, and natural gas line projects as provided by this section. Funds may also be used to provide drought‑related emergency water and sewer grants.
SECTION 13.8.(b) Definitions. – The definitions in G.S. 159G‑20 apply in this section, except that all census calculations are based on the most recent federal decennial census. In addition, the following definitions shall apply in this section unless otherwise provided:
(1) Ability to pay. – An assessment of the ability of a local government unit to pay for a water infrastructure project or natural gas line project as calculated annually by the Division of Community Assistance in the Department of Commerce.
(2) Economically distressed area. – Any of the following:
a. An economically distressed county as defined in G.S. 143B‑437.01.
b. That part of a county in which the poverty rate is at least one hundred fifty percent (150%) of the State poverty rate. The poverty rate is the percentage of the population whose income is below the most recent federal poverty level set by the U.S. Bureau of the Census.
c. If it is not a county, its ability to pay is less than fifty percent (50%) of the ability to pay of the county in which it is located.
(3) Rural county. – A county with a population density of fewer than 250 people per square mile based on the most recent federal decennial census.
SECTION 13.8.(c) Eligible Applicants; Eligible Projects. – A local government unit is eligible for a grant under this section if it meets the eligibility requirements under subsections (d) or (e) of this section for the specific type of grant. The funds appropriated under this section may be used to provide either a planning grant that meets the requirements under subsection (d) of this section or a supplemental grant that meets the requirements of subsection (e) of this section. The following projects are eligible for receiving a grant under this section:
(1) Wastewater collection system.
(2) Wastewater treatment works.
(3) Public water system.
(4) Wastewater and drinking water infrastructure planning.
(5) Multi‑jurisdictional wastewater, drinking water, water quality, and stormwater planning.<