GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
S 2
SENATE BILL 202
Appropriations/Base Budget Committee Substitute Adopted 4/7/09
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Short Title: Appropriations Act of 2009. |
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Sponsors: |
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Referred to: |
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February 18, 2009
A BILL TO BE ENTITLED
The General Assembly of North Carolina enacts:
PART I. INTRODUCTION AND TITLE OF ACT
INTRODUCTION
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.
TITLE OF ACT
SECTION 1.2. This act shall be known as the "Current Operations and Capital Improvements Appropriations Act of 2009."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund 2009‑2010 2010‑2011
EDUCATION
Community Colleges System Office $ 1,059,888,269 $ 1,104,442,194
Department of Public Instruction 7,629,717,045 7,773,516,383
University of North Carolina – Board of Governors
Appalachian State University 149,364,470 150,008,736
East Carolina University
Academic Affairs 241,853,905 244,133,225
Health Affairs 55,190,729 55,027,390
Elizabeth City State University 37,906,689 38,291,383
Fayetteville State University 60,424,635 60,745,385
North Caroline Agricultural and Technical University 103,280,528 103,283,850
North Carolina Central University 94,300,645 94,193,246
North Carolina School of the Arts 28,632,307 28,786,620
North Carolina State University
Academic Affairs 421,258,378 428,566,200
Agricultural Extension 61,941,281 60,787,417
Agricultural Research 46,237,503 45,963,661
University of North Carolina at Asheville 40,024,437 40,158,837
University of North Carolina at Chapel Hill
Academic Affairs 315,711,172 318,502,587
Health Affairs 224,910,569 228,028,319
Area Health Education Centers 52,346,018 52,363,857
University of North Carolina at Charlotte 200,230,007 200,765,231
University of North Carolina at Greensboro 172,612,251 173,265,711
University of North Carolina at Pembroke 61,015,439 61,316,418
University of North Carolina at Wilmington 104,921,437 106,343,768
Western Carolina University 96,273,475 96,370,613
Winston‑Salem State University 73,730,343 73,401,502
General Administration 43,643,644 43,627,674
University Institutional Programs 14,772,089 72,744,268
Related Educational Programs 120,250,131 119,595,220
UNC Financial Aid Private Colleges 104,888,915 104,922,915
North Carolina School of Science and Mathematics 19,304,837 19,362,188
UNC Hospitals at Chapel Hill 46,011,882 46,011,882
Total University of North Carolina –
Board of Governors $ 2,991,037,716 $ 3,066,568,103
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Division of Central Management and Support $ 57,334,182 $ 59,306,912
Division of Aging 35,927,363 38,697,945
Division of Blind Services/Deaf/HH 11,354,295 11,279,296
Division of Child Development 282,156,867 346,847,558
Division of Education Services 38,827,103 33,879,011
Division of Health Service Regulation 18,196,075 18,201,413
Division of Medical Assistance 2,528,381,854 3,171,953,118
Division of Mental Health 784,669,194 787,653,305
NC Health Choice 82,928,252 82,828,189
Division of Public Health 182,067,661 183,194,026
Division of Social Services 212,492,287 223,486,076
Division of Vocation Rehabilitation 41,765,979 41,779,037
Total Health and Human Services $ 4,276,101,112 $ 4,999,105,886
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 61,599,458 $ 61,185,805
Department of Commerce
Commerce 44,395,214 37,178,108
Commerce State‑Aid 18,804,673 15,304,673
NC Biotechnology Center 15,119,010 15,119,010
Rural Economic Development Center 24,019,453 24,019,453
Department of Environment and Natural Resources 207,284,998 200,464,914
Clean Water Management Trust Fund 95,000,000 100,000,000
Department of Labor 17,700,104 17,728,165
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 1,292,633,348 $ 1,334,385,357
Department of Crime Control and Public Safety 31,338,905 30,900,591
Judicial Department 470,465,546 471,837,687
Judicial Department – Indigent Defense 134,934,064 121,403,270
Department of Justice 92,102,712 91,344,576
Department of Juvenile Justice and
Delinquency Prevention 147,114,599 143,487,981
GENERAL GOVERNMENT
Department of Administration $ 69,163,419 $ 69,106,137
Office of Administrative Hearings 3,967,455 3,980,290
Department of State Auditor 13,224,512 13,240,784
Office of State Controller 23,361,150 23,993,456
Department of Cultural Resources
Cultural Resources 70,522,789 71,919,361
Roanoke Island Commission 1,961,296 1,961,296
State Board of Elections 4,683,822 6,187,615
General Assembly 57,661,786 59,371,264
Office of the Governor
Office of the Governor 6,113,531 6,119,712
Office of State Budget and Management 6,561,015 6,564,463
OSBM – Reserve for Special Appropriations 5,023,000 4,273,000
Housing Finance Agency 14,608,417 14,608,417
Department of Insurance
Insurance 31,644,853 31,707,037
Insurance – Volunteer Safety Workers' Compensation 2,000,000 2,000,000
Office of Lieutenant Governor 932,179 932,179
Department of Revenue 84,920,596 85,013,566
Department of Secretary of State 11,364,455 11,438,329
Department of State Treasurer
State Treasurer 17,272,124 17,285,912
State Treasurer –
Retirement for Fire and Rescue Squad Workers 10,804,671 10,804,671
TRANSPORTATION
Department of Transportation $ 0 $ 0
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Reserve for Compensation Increases $ 65,440,496 $ 56,765,776
Salary Adjustment Fund: 2009‑2011 Biennium 0 0
Contingency and Emergency Fund 5,000,000 5,000,000
Reserve for Teachers' and
State Employees' Retirement Contribution 21,000,000 21,000,000
Judicial Retirement System Contributions 1,300,000 1,300,000
Reserve for State Health Plan 128,410,208 267,904,114
Information Technology Fund 9,361,985 9,361,985
Reserve for Job Development Investment Grants (JDIG) 19,000,000 27,400,000
Adjust Debt Service (7,500,000) 7,307,323
Statewide Administrative Support (3,000,000) (4,000,000)
Federal Economic Recovery Management 1,000,000 1,000,000
E‑Procurement Receipts (10,000,000)
Biomedical Research Imaging Center (BRIC) 0 0
Biomedical Research Imaging Center (BRIC) 74,000,000 100,000,000
Contingency Reserve
Debt Service
General Debt Service 670,494,697 739,878,445
Federal Reimbursement 1,616,380 1,616,380
TOTAL CURRENT OPERATIONS –
GENERAL FUND $ 20,031,171,062 $ 21,273,226,011
Capital Improvements ‑General Fund 2009‑2010 2010‑2011
Water Resources Development Projects $ 17,600,000 $ 0
TOTAL CAPITAL IMPROVEMENTS –
GENERAL FUND $ 17,600,000 $ 0
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) The General Fund availability used in developing the 2009‑2011 biennial budget is shown below:
FY 2009‑2010 FY 2010‑2011
Unappropriated Balance Remaining from Previous Year 0 190,568,288
Projected Reversions FY 2006‑2007 0 0
Projected Overcollections FY 2006‑2007 0 0
Less Earmarkings of Year End Fund Balance
Savings Reserve Account 0 0
Repairs and Renovations Reserve Account 0 0
Beginning Unreserved Fund Balance 0 190,568,288
Revenues Based on Existing Tax Structure 18,030,500,000 19,072,800,000
Nontax Revenues
Investment Income 136,400,000 153,800,000
Judicial Fees 200,300,000 208,400,000
Disproportionate Share 100,000,000 100,000,000
Insurance 72,500,000 76,500,000
Other Nontax Revenues 195,700,000 201,500,000
Tobacco Trust Fund Transfer 0 0
Highway Trust Fund/Use Tax Reimbursement Transfer 108,500,000 72,800,000
Highway Fund Transfer 17,600,000 17,600,000
Subtotal Nontax Revenues 831,000,000 831,300,000
Total General Fund Availability 18,861,500,000 20,008,383,971
Adjustments to Availability: 2009 Session
Reserve for Tax Adjustments 500,400,000 667,100,000
Federal Fiscal Stabilization Funds – Education 580,966,000 580,966,000
Federal Fiscal Stabilization Funds – General Purpose 129,261,500 129,261,500
IRA Distribution Suspended (44,000,000) 0
Department of Revenue Improved Enforcement 50,000,000 75,000,000
Transfer from Disproportionate Share Reserve 24,994,954 0
Adjust Transfer from Insurance Regulatory Fund (2,179,969) (2,179,969)
Adjust Transfer from Treasurer's Office (885,321) (885,321)
Scrap Tire Disposal Account Funds 3,000,000 0
Increase DHHS/HSR Fees 1,122,990 1,122,990
Increase SOS Fees 3,632,700 3,632,700
Administrative Office of the Courts 32,942,179 38,899,425
Reduce Fund Balance – Nurse Educators for Tomorrow 1,000,000 0
Inmate Work Release Fund Increase 500,000 500,000
Reduce Fund Balance – Telecommunications Relay Trust Fund 5,000,000 0
Reduce Fund Balance – Teaching Fellows Trust Fund 4,500,000 0
Reduce Fund Balance – DPI Legacy Funds 2,000,000 0
Subtotal Adjustments to
Availability: 2009 Session 1,292,255,033 1,493,417,325
Revised General Fund Availability 20,153,755,033 21,501,801,296
Less: General Fund Appropriations (20,048,771,062) (21,273,033,668)
Unappropriated Balance Remaining $104,983,971 $228,767,628
SECTION 2.2.(b) Notwithstanding the provisions of G.S. 143C‑4‑3, the State Controller shall not transfer funds to the Repairs and Renovations Reserve Account on June 30, 2009. This subsection becomes effective June 30, 2009.
SECTION 2.2.(c) Notwithstanding 143C‑4‑2, the State Controller shall not transfer funds to the Savings Reserve Account on June 30, 2009. This subsection becomes effective June 30, 2009.
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 2009‑2010 fiscal year is one hundred six million ($106,000,000) and for the 2010‑2011 fiscal year is seventy‑one million ($71,000,000).
SECTION 2.2.(e) Pursuant to G.S. 105‑187.9(b)(2), the sum to be transferred under that subdivision for the 2009‑2010 fiscal year is two million five hundred thousand dollars ($2,500,000) and for the 2010‑2011 fiscal year is one million eight hundred thousand dollars ($1,800,000).
SECTION 2.2.(f) The appropriation made in this act to the Clean Water Management Trust Fund for the 2009‑2010 fiscal year is ninety‑five million dollars ($95,000,000). The provisions of G.S. 113A‑253.1 do not apply for the 2009‑2010 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 made for the fiscal biennium ending June 30, 2011, according to the following schedule:
Current Operations – Highway Fund 2009‑2010 2010‑2011
Department of Transportation
Administration $ 80,810,522 $ 81,897,273
Division of Highways
Administration 32,938,983 32,993,177
Construction 38,910,000 125,110,551
Maintenance 909,957,588 791,660,215
Planning and Research 4,055,402 4,055,402
OSHA Program 355,389 355,389
Ferry Operations 30,126,209 29,726,209
State Aid
Municipalities 87,071,264 86,200,551
Public Transportation 71,595,962 71,631,962
Airports 17,349,592 17,291,543
Railroads 17,101,153 17,101,153
Governor's Highway Safety 351,779 352,325
Division of Motor Vehicles 101,732,813 101,747,629
Other State Agencies, Reserves,
and Transfers 291,143,334 298,336,621
TOTAL $ 1,683,500,000 $1,658,460,000
Highway Fund Availability Statement
SECTION 3.2. The Highway Fund availability used in developing the 2009‑2011 biennial budget is shown below:
Highway Fund Availability Statement 2009‑2010 2010‑2011
Unappropriated Balance From Previous Year $ 0 $ 0
Beginning Credit Balance 0 0
Estimated Revenue 1,683,500,000 1,658,460,000
Total Highway Fund Availability $ 1,683,500,000 $ 1,658,460,000
Unappropriated Balance $ 0 $ 0
PART IV. HIGHWAY TRUST FUND APPROPRIATIONS
Highway Trust Fund Appropriations
Current Operations – Highway Trust Fund 2009‑2010 2010‑2011
Intrastate System $ 352,674,316 $ 369,455,555
Urban Loops 110,759,502 118,440,179
Aid to Municipalities 39,893,942 41,549,515
Secondary Roads 57,777,091 60,531,355
Program Administration 41,092,320 42,373,920
Turnpike Authority 64,000,000 99,000,000
Transfer to General Fund 108,561,829 72,846,726
Grand Total Current Operations
AND EXPANSION $ 857,490,000 $ 884,190,000
Highway Trust Fund Availability Statement
SECTION 4.2. The Highway Trust Fund availability used in developing the 2009‑2011 biennial budget is shown below:
Total Highway Trust Fund Availability $ 857,490,000 $ 884,190,000
PART V. OTHER appropriations
civil forfeiture funds
SECTION 5.1.(a) Appropriations. – Appropriations are made from the Civil Penalty and Forfeiture Fund for the fiscal biennium ending June 30, 2011, as follows:
FY 2009‑2010 FY 2010‑2011
School Technology Fund $ 18,000,000 $ 18,000,000
State Public School Fund 138,546,041 120,362,790
Total Appropriation $156,546,041 $138,362,790
SECTION 5.1.(b) All University of North Carolina campuses shall remit all parking fines held in escrow in the amount of eighteen million one hundred eighty‑three thousand two hundred fifty‑one dollars ($18,183,251) to the Civil Penalties and Forfeitures Fund for appropriation.
SECTION 5.2.(a) Notwithstanding 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 sixty‑eight million seventy thousand two hundred eight dollars ($368,070,208) for the 2009‑2010 fiscal year.
SECTION 5.2.(b) Notwithstanding G.S. 18C‑164, the appropriations made from the Education Lottery Fund for the 2009‑2010 fiscal year are as follows:
Teachers in Early Grades 99,399,395
Prekindergarten Program 84,635,709
Public School Building Capital Fund 147,228,083
Scholarships for Needy Students 36,807,021
Total Appropriation $368,070,208
SECTION 5.2.(c) Notwithstanding G.S. 18C‑164, the North Carolina State Lottery Commission shall not transfer funds to the Education Lottery Reserve Fund for the 2009‑2010 fiscal year or the 2010‑2011 fiscal year.
INFORMATION TECHNOLOGY FUND AVAILABILITY AND APPROPRIATION
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 2009‑2010 FY 2010‑2011
Interest Income $100,000 $100,000
IT Fund Balance June 30 $3,359,419 $100,000
Appropriation from General Fund $9,361,985 $9,361,985
Total Funds Available $12,821,404 $9,561,985
SECTION 5.3.(b) Appropriations are made from the Information Technology Fund for the 2009‑2011 fiscal biennium as follows:
Office of Information Technology Services FY 2009‑2010 FY 2010‑2011
Information Technology Operations $7,891,607 $7,891,607
Information Technology Projects $4,829,797 $4,829,797
Total $12,721,404 $12,721,404
APPROPRIATION OF CASH BALANCES
SECTION 5.4.(a) State funds, as defined in G.S. 143C‑1‑1(d)(25), are appropriated and authorized as provided in G.S. 143C‑1‑2 for the 2009‑2011 fiscal biennium as follows:
(1) For all budget codes listed in the Base Budget and Performance Management Information sections of "North Carolina State Budget, Recommended Operating Budget 2009‑2011, Volumes 1 through 6," cash balances and receipts are appropriated up to the amounts specified in Volumes 1 through 6, as adjusted by the General Assembly, for the 2009‑2010 fiscal year and the 2010‑2011 fiscal year. Funds may be expended only for the programs, purposes, objects, and line items specified in Volumes 1 through 6, or otherwise authorized by the General Assembly. Expansion budget funds listed in those documents are appropriated only as otherwise provided in this act.
(2) For all budget codes that are not listed in "North Carolina State Budget, Recommended Operating Budget 2009‑2011, Volumes 1 through 6," cash balances and receipts are appropriated for each year of the 2009‑2011 fiscal biennium up to the level of actual expenditures for the 2008‑2009 fiscal year, unless otherwise provided by law. Funds may be expended only for the programs, purposes, objects, and line items authorized for the 2008‑2009 fiscal year.
(3) Notwithstanding subdivisions (1) and (2) of this subsection, any receipts that are required to be used to pay debt service requirements for various outstanding bond issues and certificates of participation are appropriated up to the actual amounts received for the 2009‑2010 fiscal year and the 2010‑2011 fiscal year and shall be used only to pay debt service requirements.
(4) Notwithstanding subdivisions (1) and (2) of this subsection, cash balances and receipts of funds that meet the definition issued by the Governmental Accounting Standards Board of a trust or agency fund are appropriated for and in the amounts required to meet the legal requirements of the trust agreement for the 2009‑2010 fiscal year and the 2010‑2011 fiscal year.
SECTION 5.4.(b) Receipts collected in a fiscal year in excess of the amounts authorized by this section shall remain unexpended and unencumbered until appropriated by the General Assembly in a subsequent fiscal year, unless the expenditure of overrealized receipts in the fiscal year in which the receipts were collected is authorized by the State Budget Act.
Overrealized receipts are appropriated up to the amounts necessary to implement this subsection.
In addition to the consultation and reporting requirements set out in G.S. 143C‑6‑4, the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter on any overrealized receipts approved for expenditure under this subsection by the Director of the Budget. The report shall include the source of the receipt, the amount overrealized, the amount authorized for expenditure, and the rationale for expenditure.
SECTION 5.4.(c) Notwithstanding subsections (a) and (b) of this section, there is appropriated from the Reserve for Reimbursements to Local Governments and Shared Tax Revenues for each fiscal year an amount equal to the amount of the distributions required by law to be made from that reserve for that fiscal year.
American Recovery and Reinvestment Act of 2009
SECTION 5.5.(a) Appropriations of funds received under the American Recovery and Reinvestment Act of 2009 are made for the 2009‑2011 fiscal biennium, according to the following schedule:
2009‑2010 2010‑2011
Fiscal Stabilization: Education $ 580,965,782 $ 580,965,782
Fiscal Stabilization: General 129,261,335 129,261,335
Medicaid Disproportionate Share 7,314,833 7,314,833
Title I Grants 128,728,180 128,728,180
Title I School Improvement 38,336,500 38,336,500
IDEA: Part B 157,205,000 157,205,000
IDEA: Part B (Preschool) 6,035,500 6,035,500
Homeless Assistance 645,000 645,000
Education Technology 8,179,529 8,179,529
School Lunch Equipment 3,313,727 ‑
State Energy Programs 37,994,500 37,994,500
HOME Investment Partnership Program 26,076,344 26,076,344
Homelessness Prevention Fund 14,539,194 14,539,194
IDEA: Part C 6,365,500 6,365,500
TANF Supplemental Grants 27,075,000 9,025,000
Community Services Block Grant 8,748,333 11,664,444
Child Care and Development Block Grants 67,543,000 ‑
Vocational Rehabilitation Agency Funding 9,014,504 9,014,504
Older Blind Individuals/VR 521,182 521,182
Child Support Enforcement (Incentive Payments) 2,214,542 330,000
Weatherization Assistance Grants 131,954,536 ‑
Medicaid FMAP Increase 920,377,105 514,514,239
Medicaid FMAP Increase‑local administration ‑ ‑
Foster Care and Adoption FMAP Increase 2,840,410 726,309
Prevention and Wellness Fund Grants (Immunization) 5,689,500 5,689,500
Senior Meals Programs 1,384,392 1,384,392
Byrne/Justice Assistance Grants 17,245,779 17,245,779
Violence Against Women: Services‑Training‑
Officers‑Prosecutors (STOP) Grants 3,784,000 ‑
Victims of Crime Act (VOCA) Grants: Victim
Compensation 647,906 ‑
Victims of Crime Act (VOCA) Grants: Victim
Assistance 1,110,000 ‑
Internet Crimes Against Children Task Force Program 879,040 ‑
Unemployment Insurance: Administration 7,323,699 7,323,699
Employment Services Grants (Wagner‑Peyser) 11,091,396 ‑
Community Service Employment for Older Americans 1,583,153 1,583,153
Energy Efficiency and Conservation Block Grants 29,025,150 29,025,150
Clean Water State Revolving Funds 71,443,500 ‑
Drinking Water Revolving Funds 65,625,000 ‑
State Clean Diesel Program 1,730,000 ‑
Community Development Block Grant: Non‑Entitlement
Funds 6,040,307 6,040,307
Workforce Investment Act: Youth Activities 12,535,349 12,535,349
Workforce Investment Act: Adult Activities 5,168,583 5,168,583
Workforce Investment Act: Dislocated Worker
Activities 22,209,637 22,209,637
Transit Capital Assistance 103,304,242 ‑
Highway Infrastructure Investment $ 735,527,000 $ ‑
TOTAL $ 3,418,597,166 $ 1,795,648,421
SECTION 5.5.(b) If funds received from the American Recovery and Reinvestment Act of 2009 exceed the amount set out in subsection (a) of this section, such additional funds are hereby appropriated for the appropriate fiscal year.
OTHER RECEIPTS FROM PENDING GRANT AWARDS
SECTION 5.6. Notwithstanding G.S. 143C‑6‑4, State agencies may, with approval of the Director of the Budget and after consultation with the Joint Legislative Committee on Governmental Operations, spend funds received from grants awarded subsequent to the enactment of this act. The Office of State Budget and Management shall work with the recipient State agencies to budget grant awards 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.
PART VI. GENERAL PROVISIONs
EXPENDITURES OF FUNDS IN RESERVES LIMITED
SECTION 6.1. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
SECTION 6.2. 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.
SECTION 6.3. Notwithstanding G.S. 143C‑6‑4(b), the Office of State Budget and Management, in consultation with the Office of the State Controller and the Fiscal Research Division, may adjust the enacted budget by making transfers among purposes or programs for the sole purpose of correctly aligning authorized positions and associated operating costs with the appropriate purposes or programs as defined in G.S. 143C‑1‑1(d)(23). The Office of State Budget and Management shall change the certified budget to reflect these adjustments only after reporting the proposed adjustments to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division. Under no circumstances shall total General Fund expenditures for a State department exceed the amount appropriated to that department from the General Fund for the fiscal year.
ESTABLISHING OR INCREASING FEES PURSUANT TO this ACT
SECTION 6.4.(a) Notwithstanding G.S. 12‑3.1, an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee as authorized or anticipated in this act.
SECTION 6.4.(b) In establishing or increasing a fee as authorized or anticipated in this act, if adoption of a rule would otherwise be required under Article 2A of Chapter 150B of the General Statutes, an agency may adopt a temporary rule as this constitutes a "recent act of the General Assembly" under G.S. 150B‑21.1(a)(2). Pending adoption and review of the temporary rule, the agency may adopt an emergency rule under G.S. 150B‑21.1A based solely on the need to raise revenue to fund services.
AUTHORIZATION TO ESTABLISH RECEIPT SUPPORTED POSITIONS
SECTION 6.5. 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.
Fiscal Crisis/Furlough flexibility
SECTION 6.6.(a) Findings. – The General Assembly finds that:
(1) The extreme fiscal crisis affecting North Carolina's economy, the national economy, and global economic markets has substantially reduced the State's revenue projections for the 2009‑2011 biennium.
(2) Economies in State expenditures and maximized efficiencies in State operations must be effected immediately and systematically in order to meet the compelling State interest of enacting a balanced budget in accordance with the State Constitution and to protect the interests of the people of North Carolina.
(3) Given the broad scope and depth of other budget reduction and efficiency measures required by this act, allowing voluntary furloughs and requiring mandatory furloughs of public employees, when necessary, is a reasonable measure to avoid disruptive mass layoffs and the elimination of positions in public employment, to preserve the public health, safety, and welfare and to continue the effective administration of important governmental functions in the interest of the people of North Carolina.
SECTION 6.6.(b) To achieve savings identified in the management flexibility reserves established in this act, State agencies may:
(1) Reduce salary‑related expenditures by (i) reductions in purchased services and contractual services, (ii) reductions in force, and (iii) with the approval of the Director of the Budget, implementation of furloughs in accordance with subsections (c) through (g) of this section; and
(2) Reduce non‑salary expenditures such as purchases of supplies and equipment, maintenance expenses, rental and lease expenses, and any other allowable reductions in non‑salary expenditures.
SECTION 6.6.(c) Definitions. – The following definitions apply in this section:
(1) Compensation. – Base rate of compensation, not including pay for shift premiums, overtime, or other types of extraordinary pay.
(2) Essential positions. – Any position deemed by the head of an agency to be necessary to perform the critical functions of that agency to protect the health or safety of the agency's employees, students, clients, or patients of the public agency or to protect the general public.
(3) Furlough. – A temporary period of leave from employment without pay.
(4) Nonessential positions. – Any position in a public agency that is not designated as essential positions by the head of that agency.
(5) Public employee. – Any person employed (i) in the executive, legislative, or judicial branch of State government, (ii) by The University of North Carolina, (iii) by the North Carolina Community College System, or (iv) by a local school administrative unit. The term includes public officers.
(6) Public agency. – Any State agency, department, or institution; and the executive, legislative, and judicial branches of State government; The University of North Carolina; the North Carolina Community College System; and local school administrative units.
SECTION 6.6.(d) Furlough Flexibility. – For the 2009‑2010 and 2010‑2011 fiscal years, public agencies have management flexibility to allow voluntary furloughs and to require mandatory furloughs of public employees to generate necessary economies and efficiencies in budgeting.
SECTION 6.6.(e) Compensation and Benefits. – A period of furlough shall only affect or reduce a public employee's base salary or compensation. A period of furlough shall not affect or diminish a public employee's continuous service, length of aggregate service, retirement service credits, anniversary date, eligibility for authorized holiday leave, longevity pay, or the accrual of vacation and sick leave. Periods of furlough shall be applied equitably to all essential and nonessential positions regardless of the funding source of the position. A furloughed public employee who is a member of:
(1) Any of the State‑supported retirement plans administered by the Retirement Systems Division of the Department of the State Treasurer shall be considered in active service during any period of furlough and shall be entitled to all of the same benefits to which the employee was entitled on the workday immediately preceding the furlough. During a furlough period, the public agency shall pay both the employee and employer contributions to the Retirement Systems Division on behalf of the furloughed public employee as though that employee were in active service.
(2) The State Health Plan for Teachers and State Employees shall be considered eligible for coverage under the Plan on the same basis as on the workday immediately preceding the furlough. The employing public agency shall pay contributions on behalf of the furloughed employee as though the employee were in active service.
SECTION 6.6.(f) Policies. – The Office of State Budget and Management (OSBM) and the State Board of Education (SBE) shall each adopt policies necessary for the implementation of this section. The policies shall govern (i) the scheduling of furloughs, (ii) the amount of notice that must be given to a public employee prior to the effective date of a period of furlough, (iii) whether furloughs may be taken in increments of full days, (iv) the continued accrual of annual and sick leave, (v) treatment of part‑time employees, and (vi) any other matter related to the implementation of this section. The OSBM and SBE shall provide maximum flexibility to public agencies and public employees in the scheduling of furlough days to provide public agencies the ability to effectively manage furloughs of employees employed in essential positions so as not to affect critical functions. The policies shall provide that a public employee whose normal workday exceeds eight hours per day will sustain the same proportionate reduction as a public employee who works eight hours per day. The Office of State Personnel shall provide technical assistance to OSBM, as requested, in developing a plan for the implementation of furloughs.
SECTION 6.6.(g) The OSBM and SBE shall adopt emergency rules for the implementation of this section in accordance with G.S. 150B‑21.1A, except that notwithstanding G.S. 150B‑21.1A(d) those emergency rules may remain in effect until the expiration of this subsection. This subsection expires June 30, 2011.
SECTION 6.6.(h) Subsection (b) of this section is effective July 1, 2009. The remainder of this sections is effective when it becomes law.
Information Technology Operations
SECTION 6.7.(a) Office of Information Technology Services Budget. – Notwithstanding G.S. 147‑33.88, the Office of Information Technology Services shall develop an annual budget for review and approval by the Office of State Budget and Management in accordance with a schedule prescribed by the Director of the Office of State Budget and Management. The approved Office of Information Technology Services budget shall be included in the Governor's budget recommendations to the General Assembly.
The Office of State Budget and Management shall ensure that State agencies have an opportunity to adjust their budgets based on any rate changes proposed by the Office of Information Technology Services.
SECTION 6.7.(b) Enterprise Projects. – The State Chief Information Officer shall consult the respective State agency chief information officers to identify specific State agency requirements prior to the initiation of any enterprise project. State agency requirements shall be incorporated into any enterprise agreement signed by the State Chief Information Officer. Enterprise projects shall not exceed the participating State agencies' ability to financially support the contracts.
The State Chief Information Officer shall not enter into any information technology contracts without obtaining written agreements from participating State agencies regarding apportionment of funding. State agencies agreeing to participate in a contract shall:
(1) Ensure that sufficient funds are budgeted to support their agreed shares of enterprise agreements throughout the life of the contract.
(2) Transfer the agreed‑upon funds to the Office of Information Technology Services in sufficient time for the Office of Information Technology Services to meet contract requirements.
SECTION 6.7.(c) Notwithstanding the cash management provisions of G.S. 147‑86.11, the Office of Information Technology Services may procure information technology goods and services for periods of up to a total of three years where the terms of the procurement contract require payment of all, or a portion, of the contract purchase price at the beginning of the agreement. All of the following conditions shall be met before payment for these agreements may be disbursed:
(1) Any advance payment complies with the Office of Information Technology Services 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 aspects 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 any other reasonable means that have legally binding effect.
The Office of State Budget and Management shall ensure the savings from any authorized agreement shall be included in the Office of Information Technology Services calculation of rates before the Office of State Budget and Management annually approves the proposed rates. The Office of Information Technology Services shall report to the Office of State Budget and Management on any State agency budget impacts resulting from multiyear contracts.
The Office of Information Technology Services shall submit a quarterly written report of any authorizations granted under this subsection to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division.
SECTION 6.7.(d) State agencies developing and implementing information technology projects shall use the State infrastructure to host their projects. The State Chief Information Officer may grant an exception if the State agency can demonstrate any of the following:
(1) Using an outside contractor would be more cost‑effective for the State.
(2) The Office of Information Technology Services does not have the technical capabilities required to host the application.
(3) Valid security requirements preclude the use of State infrastructure, and a contractor can provide a more secure environment.
Geographic information consolidation
SECTION 6.8.(a) Findings. – The General Assembly finds that there is a critical need for consolidating the investments made in geographic information systems and developing common infrastructures in order for the State to reap all the potential benefits of geographic information systems at the lowest cost.
SECTION 6.8.(b) Implementation Plan. – The recommendations outlined in the 2008 legislative report prepared by the State Chief Information Officer, the Geographic Information Coordinating Council, and the Office of State Budget and Management, made pursuant to Section 6.13 of S.L. 2008‑107, entitled "State Geographic Information Consolidation Implementation Plan," shall be implemented in four distinct work streams, as follows:
(1) Transferring the Center for Geographic Information and Analysis to the Office of the State Chief Information Officer and establishing appropriated funding for staff activities supporting the Geographic Information Coordinating Council, statewide standards, and the coordination of data acquisition.
(2) Reestablishing the professional services component and refocusing that effort toward current needs of the community while reducing those overhead costs.
(3) Revitalizing the NC OneMap project by leveraging new technology in the market to reduce costs while increasing utility of the service.
(4) Establishing a geographic information systems Reserve Fund for the acquisition of data layers which may be useful to multiple organizations and through which data acquisition may be procured to reduce cost.
SECTION 6.8.(c) Transfers of Agencies, Powers, Duties. – The statutory authority, powers, duties, functions, records, personnel, property, and unexpended balances of appropriations, allocations, or other funds of the State agencies and subunits listed in this subsection are transferred from those entities to the State Chief Information Officer, Office of Information Technology Services, with all of the elements of a Type II transfer as defined by G.S. 143A‑6:
(1) The North Carolina Geographic Information Coordinating Council.
(2) The Center for Geographic Information and Analysis.
The Center for Geographic Information and Analysis shall remain in its current office space unless the State Chief Information Officer determines otherwise.
SECTION 6.8.(d) Center for Geographic Information and Analysis Coordination. – The State Chief Information Officer shall coordinate a professional services component for geographic information systems coordination with the Center for Geographic Information and Analysis that is refocused toward current community needs.
SECTION 6.8.(e) North Carolina Geographic Information Coordinating Council Coordination. – The State Chief Information Officer, in cooperation with the North Carolina Geographic Information Coordinating Council shall coordinate the refocusing of the NC OneMap geographic information systems infrastructure project to leverage new technology, to increase the utility of geographic information systems services, and to reduce geographic information systems data layer costs through singly managed contracts.
SECTION 6.8.(f) Geographic Information Systems Reserve Fund. – There is established in the Office of State Budget and Management the Geographic Information Systems Reserve Fund, which shall be nonreverting, for the purpose of acquiring and managing, at the lowest cost, data layers useful to multiple State and local organizations, according to the priorities set by the North Carolina Geographic Information Coordinating Council. The Geographic Information Systems Reserve Fund may receive private grants and may include State, federal, local, and matching funds.
SECTION 6.8.(g) Information Technology Fund. – Of the funds appropriated in this act to the Information Technology Fund, the sum of six hundred fifty thousand dollars ($650,000) for the 2009‑2010 fiscal year and the sum of six hundred fifty thousand dollars ($650,000) for the 2010‑2011 fiscal year shall be used to effectuate the transfer of the Center for Geographic Information and Analysis, including the cost of moving personnel positions, as provided by this act.
SECTION 6.9.(a) The Office of the State Controller, in cooperation with the State Chief Information Officer, shall continue the implementation of the BEACON Strategic Plan for Data Integration, issued in April 2008. The 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 or State law shall be limited to appropriate and authorized persons.
SECTION 6.9.(b) The Office of State Controller shall give the Criminal Justice Data Integration Pilot Program first priority for funding and for system development and implementation.
The Office of State Controller shall determine the amount of funding required to (i) fully support the Criminal Justice Data Integration Pilot Program effort and (ii) develop full operational capability in Wake County during the 2009‑2010 fiscal year. The Office of State Controller shall not otherwise obligate these funds.
SECTION 6.9.(c) By September 1, 2009, the Office of State Controller shall report to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division on (i) funding requirements and sources of funds for the Criminal Justice Data Integration Pilot Program for the 2009‑2010 fiscal year and (ii) the anticipated uses of any remaining funds for the BEACON Data Integration Program. The Office of State Controller shall spend funds to support the BEACON Data Integration Program only as is specifically authorized in Section 6.16(d) of S.L. 2008‑107.
By October 1, 2009, the Office of State Controller, in coordination with the State Chief Information Officer, shall also report on future costs for implementing the BEACON Data Integration Program, including outside vendor costs. This report shall include a detailed explanation of potential costs and the efforts participating agencies are making to reduce these costs. This report shall be presented to the Joint Legislative Oversight Committee on Information Technology and written reports shall be provided to the House of Representatives and Senate Appropriations Committees and to the Fiscal Research Division.
Criminal Justice Data Integration Pilot Program
SECTION 6.10.(a) 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 continue the development of the Criminal Justice Data Integration Pilot Program in Wake County as specified in Section 6.15 of S.L. 2008‑107. The Office of State Controller shall achieve and demonstrate full operational capability of the pilot program in Wake County before the system is expanded to other areas of the State.
SECTION 6.10.(b) The Criminal Justice Data Integration Pilot Program shall continue to 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 6.10.(c) The Office of State Controller shall develop a detailed plan for the statewide expansion of the Criminal Justice Data Integration Pilot Program. This plan shall include the following:
(1) An implementation schedule;
(2) The requirements individual users must meet to participate in the program;
(3) Detailed cost information for the development and implementation of a statewide system, including any user costs;
(4) A governance structure for management and oversight of the system; and
(5) Any other issues associated with the implementation of the system.
The Office of State Controller shall submit this plan to the House of Representatives and Senate Appropriations Committees, the Joint Legislative Oversight Committee on Information Technology, and the Fiscal Research Division by January 31, 2010.
SECTION 6.10.(d) The Office of State Controller shall work with the data integration software vendor to ensure that licenses are obtained at the least possible cost.
SECTION 6.10.(e) A State agency data center shall host the Criminal Justice Data Integration Pilot Program. The Office of State Controller shall identify a State data center to host the program and shall report its recommendation to the Joint Legislative Oversight Committee on Information Technology by August 31, 2009.
SECTION 6.10.(f) Funds appropriated for the Criminal Justice Data Integration Pilot Program shall only be used for that program. The Criminal Justice Data Integration Pilot Program shall have first priority for funds available to the BEACON Data Integration Program.
SECTION 6.10.(g) The Office of State Controller shall continue to provide quarterly written reports on the program's progress to the House of Representatives and Senate Appropriations Committees, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division beginning October 1, 2009.
Office of Information Technology Services/UNC Bulk Purchasing of Information Technology
SECTION 6.11. The General Administration of The University of North Carolina, with assistance from the Office of Information Technology Services and the Office of State Budget and Management, shall consolidate information technology infrastructure purchasing which includes, but is not limited to, personal computer and printer purchases for all 16 State universities, the North Carolina School of Science and Mathematics, and General Administration, by creating a bulk purchasing process that will realize savings through efficiencies. General Administration may choose to utilize the Office of Information Technology Services' existing bulk contracts. Information technology infrastructure expenditure shall not be authorized without complying with this section.
Joint Legislative oversight Committee On Information Technology/ Review and report on current law
SECTION 6.12. By April 1, 2010, the Joint Legislative Oversight Committee on Information Technology shall review State information technology‑related legislation and develop recommendations for amendment of current laws and shall submit its written report of recommendations for legislative action to the Appropriations Committees of the Senate and the House of Representatives. The Joint Legislative Oversight Committee on Information Technology shall provide interested parties with the opportunity to identify and define pertinent information technology issues by offering testimony on (i) issues associated with current legislation, (ii) the impact of information technology laws on specific entities; and, (iii) recommendations for improving information technology organization and operations within the State.
Office of Information Technology Services/Network Integration/feasibility study and coordination plan
SECTION 6.13.(a) The State Chief Information Officer shall negotiate and coordinate with MCNC to identify efficiencies that might be achieved through increased cooperation and elimination of duplicative efforts in management of the State's network infrastructure operated by the Office of Information Technology Services and by the North Carolina Research and Education Network operated by MCNC. Potential efficiencies include, but are not limited to, shared infrastructure, personnel, contracted services, and support.
SECTION 6.13.(b) Office of Information Technology Services and the Office of State Budget and Management, in conjunction with MCNC, shall conduct a study to determine the feasibility of coordinating the operation of the North Carolina Research and Education Network and the State network infrastructure. The feasibility study shall define the capabilities and limitations of the Office of Information Technology Services and MCNC and document services currently provided by Office of Information Technology Services and MCNC. Further, the feasibility study shall identify:
(1) Current and potential State agency network requirements.
(2) The organization currently supporting each network requirement.
(3) Requirements that are currently unsupported by either organization.
(4) Costs associated with each requirement.
(5) Potential cost savings resulting from network integration.
(6) Policy and operational issues associated with the coordination.
The study shall be reviewed by the Office of State Budget and Management, which shall validate and certify the identified efficiencies and cost savings. Office of Information Technology Services and MCNC shall complete the feasibility study and present it to the Joint Legislative Oversight Committee on Information Technology by October 31, 2009.
SECTION 6.13.(c) Following review of the feasibility study by Office of State Budget and Management, and if Office of State Budget and Management certifies that the efficiencies and savings identified in the study are valid, accurate, and substantial enough to justify increased coordination, then Office of Information Technology Services and MCNC shall develop a plan to coordinate their operations. The coordination plan shall include at least the following:
(1) Definition of requirements to achieve Statewide integration.
(2) Detailed information on the allocation of responsibility for each requirement and component.
(3) An estimate of the associated costs with each requirement or component, including what the costs to each agency would be without coordination.
(4) Priorities for integration.
(5) A schedule for implementation.
(6) Detailed cost information for the development and integration of a single network.
(7) A governance structure for management and oversight of the network.
(8) A means for resolution of any issues identified during the feasibility study.
The coordination plan shall be completed by February 28, 2010, and shall be presented to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Oversight Committee on Information Technology.
SECTION 6.13.(d) Prior to implementation of the plan, Office of Information Technology Services and MCNC shall complete a memorandum of agreement that specifies their respective roles and responsibilities and defines payment schedules. By January 1 each year, Office of State Budget and Management shall report to the Joint Legislative Oversight Committee on Information Technology regarding the status of the coordination plan and the cost savings realized during the previous fiscal year.
SECTION 6.14.(a) The Office of State Budget and Management, in coordination with the Office of the State Chief Information Officer, shall develop a detailed plan to upgrade the State portal. The upgrade plan shall include consideration of the need to (i) improve State services for citizens and businesses; (ii) offer online services; (iii) provide crucial, up‑to‑the‑minute emergency information; and (iv) provide a multipurpose, interactive Web portal.
SECTION 6.14.(b) Prior to developing the plan, the Office of State Budget and Management shall obtain the advice and assistance of State and local government agencies, businesses operating within the State, and private citizens to ensure that all potential users have the opportunity to submit recommendations for inclusion in the final plan.
The Office of State Budget and Management shall also conduct an inventory of capabilities that are available on other states' portals. With the assistance of State agencies, the Office of State Budget and Management shall prioritize potential capabilities. Based on these priorities, the Office of State Budget and Management shall develop a phased plan to allow incremental implementation that includes a detailed time line for each phase and shall include the cost associated with each phase.
SECTION 6.14.(c) The interactive Web portal shall include the capability for citizens, businesses, and State and local government agencies to complete online transactions, obtain live help from State agencies, and access emergency information in real time. The portal shall include appropriate security measures and devices to include encryption, enterprise‑class firewalls/gateway security, real‑time intrusion prevention and detection, virtual private networks, vulnerability management, and virus protection.
SECTION 6.14.(d) By December 1, 2009, the Office of State Budget and Management shall submit the upgrade plan to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division. The report shall include an explanation of any recommendations that were not included in the final plan with an explanation as to why each was not included and the cost associated with implementation of those items.
SECTION 6.15. The Office of State Budget and Management shall conduct a study to determine the feasibility of using General Services Administration schedules for the acquisition of information technology products and services. The study shall include review of the following:
(1) Any cost savings resulting from the use of General Services Administration schedules for the acquisition of information technology goods and services. This shall include any reductions in overhead that could be realized from the use of General Services Administration schedules.
(2) Any benefits resulting from implementation.
(3) Any negative impacts resulting from implementation.
(4) Any legislative changes required to implement General Services Administration schedules.
By February 1, 2010, the Office of State Budget and Management shall submit the results of the study to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division.
Use of Electronic Forms and Digital Signatures
SECTION 6.16.(a) The Office of State Budget and Management shall develop a plan to increase the use of electronic forms and digital signatures throughout State government. In developing the plan, first the Office of State Budget and Management shall conduct an inventory of all paper or electronic forms currently in use by executive branch agencies. The Office of State Budget and Management may hire temporary help for the collection and compiling of the data for the inventory.
SECTION 6.16.(b) After completing the inventory, the Office of State Budget and Management shall develop a plan for converting one or more paper forms to an electronic format. The plan shall include a detailed business case for the conversion, including cost, cost savings, cost avoidance, and any impact on productivity.
SECTION 6.16.(c) The Office of State Budget and Management shall assess the potential cost of converting all identified forms in the inventory to an electronic format and establish a timetable for achieving conversion as soon as practicable.
SECTION 6.16.(d) The Office of Information Technology Services shall provide technical assistance to the Office of State Budget and Management in the development of the plan to increase the use of electronic forms and digital signatures.
SECTION 6.16.(e) Executive branch State agencies shall provide all information requested by Office of State Budget and Management in conducting the inventory and in all other issues related to the development of this plan.
SECTION 6.16.(f) The Office of State Budget and Management shall submit the plan to the Joint Legislative Oversight Committee on Information Technology on or before March 1, 2010.
Position transfer Reports/Office of Information Technology Services/OSC
SECTION 6.17.(a) By November 1, 2009, the Office of Information Technology Services shall submit a written report to the Appropriation Committees of the Senate and the House of Representatives, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division regarding the transfer of information technology (IT) positions associated with IT consolidation. The report shall include the following:
(1) The numbers and types of positions transferred to the Office of Information Technology Services from other State agencies, an explanation as to why each position was moved to Office of Information Technology Services, the cost associated with each position, and how that cost is allocated.
(2) The number and types of information technology positions remaining with each State agency, an explanation as to why the positions were retained by the agency, and the total cost for each position.
(3) The number and location of positions eliminated as a result of IT consolidation and the associated cost savings.
(4) Any new positions created within Office of Information Technology Services to support IT consolidation, the reason each position was created, and the associated cost.
SECTION 6.17.(b) By November 1, 2009, the Office of the State Controller shall submit a written report to the Appropriations Committees of the Senate and House of Representatives, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division on the transfer of positions associated with the implementation of the BEACON (HR)/Payroll project. The report shall include the following:
(1) The numbers and types of positions transferred to the Office of the State Controller from other State agencies, an explanation as to why each position was moved to the Office of the State Controller, the cost associated with each position, and how that cost is allocated.
(2) The number and types of positions remaining with each State agency, an explanation as to why the positions were retained by the agency, and the total cost for each position.
(3) The number and location of positions eliminated as a result of the implementation of the BEACON HR/Payroll system and the associated cost savings.
(4) Any new positions created within the Office of the State Controller to support BEACON HR/Payroll, the reason each position was created, and the associated cost.
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 five hundred dollars and seventy‑seven cents ($3,500.77) per child for a maximum of 173,249 children for the 2009‑2010 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 2009‑2010 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 sixty‑three dollars and seven cents ($1,163.07) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2009‑2010 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 58,597 children for the 2009‑2010 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.
USE OF SUPPLEMENTAL FUNDING IN LOW‑WEALTH COUNTIES
SECTION 7.3.(a) Use of Funds for Supplemental Funding. – All funds received pursuant to this section shall be used only: (i) to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, school computer technicians, instructional supplies and equipment, staff development, and textbooks; (ii) for salary supplements for instructional personnel and instructional support personnel; and (iii) to pay an amount not to exceed ten thousand dollars ($10,000) of the plant operation contract cost charged by the Department of Public Instruction for services. Local boards of education are encouraged to use at least twenty‑five percent (25%) of the funds received pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 and children who are performing at Level I or II in grades 4 and 7.
SECTION 7.3.(b) Definitions. – As used in this section:
(1) "Anticipated county property tax revenue availability" means the county‑adjusted property tax base multiplied by the effective State average tax rate.
(2) "Anticipated total county revenue availability" means the sum of the:
a. Anticipated county property tax revenue availability,
b. Local sales and use taxes received by the county that are levied under Chapter 1096 of the 1967 Session Laws or under Subchapter VIII of Chapter 105 of the General Statutes,
c. Sales tax hold harmless reimbursement received by the county under G.S. 105‑521, and
d. Fines and forfeitures deposited in the county school fund for the most recent year for which data are available.
(3) "Anticipated total county revenue availability per student" means the anticipated total county revenue availability for the county divided by the average daily membership of the county.
(4) "Anticipated State average revenue availability per student" means the sum of all anticipated total county revenue availability divided by the average daily membership for the State.
(5) "Average daily membership" means average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education. If a county contains only part of a local school administrative unit, the average daily membership of that county includes all students who reside within the county and attend that local school administrative unit.
(6) "County‑adjusted property tax base" shall be computed as follows:
a. Subtract the present‑use value of agricultural land, horticultural land, and forestland in the county, as defined in G.S. 105‑277.2, from the total assessed real property valuation of the county,
b. Adjust the resulting amount by multiplying by a weighted average of the three most recent annual sales assessment ratio studies,
c. Add to the resulting amount the:
1. Present‑use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105‑277.2,
2. Value of property of public service companies, determined in accordance with Article 23 of Chapter 105 of the General Statutes, and
3. Personal property value for the county.
(7) "County‑adjusted property tax base per square mile" means the county‑adjusted property tax base divided by the number of square miles of land area in the county.
(8) "County wealth as a percentage of State average wealth" shall be computed as follows:
a. Compute the percentage that the county per capita income is of the State per capita income and weight the resulting percentage by a factor of five‑tenths,
b. Compute the percentage that the anticipated total county revenue availability per student is of the anticipated State average revenue availability per student and weight the resulting percentage by a factor of four‑tenths,
c. Compute the percentage that the county‑adjusted property tax base per square mile is of the State‑adjusted property tax base per square mile and weight the resulting percentage by a factor of one‑tenth,
d. Add the three weighted percentages to derive the county wealth as a percentage of the State average wealth.
(9) "Effective county tax rate" means the actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.
(10) "Effective State average tax rate" means the average of effective county tax rates for all counties.
(11) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(12) "Per capita income" means the average for the most recent three years for which data are available of the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis, including any reported modifications for prior years as outlined in the most recent report.
(13) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(14) "State average current expense appropriations per student" means the most recent State total of county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(15) "State average adjusted property tax base per square mile" means the sum of the county‑adjusted property tax bases for all counties divided by the number of square miles of land area in the State.
(16) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(17) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.3.(c) Eligibility for Funds. – Except as provided in subsection (g) of this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than one hundred percent (100%).
SECTION 7.3.(d) Allocation of Funds. – Except as provided in subsection (f) of this section, the amount received per average daily membership for a county shall be the difference between the State average current expense appropriations per student and the current expense appropriations per student that the county could provide given the county's wealth and an average effort to fund public schools. (To derive the current expense appropriations per student that the county could be able to provide given the county's wealth and an average effort to fund public schools, multiply the county's wealth as a percentage of State average wealth by the State average current expense appropriations per student.) The funds for the local school administrative units located in whole or in part in the county shall be allocated to each local school administrative unit located in whole or in part in the county based on the average daily membership of the county's students in the school units. If the funds appropriated for supplemental funding are not adequate to fund the formula fully, each local school administrative unit shall receive a pro rata share of the funds appropriated for supplemental funding.
SECTION 7.3.(e) Formula for Distribution of Supplemental Funding Pursuant to This Section Only. – The formula in this section is solely a basis for distribution of supplemental funding for low‑wealth counties and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for low‑wealth counties.
SECTION 7.3.(f) Minimum Effort Required. – Counties that had effective tax rates in the 1996‑1997 fiscal year that were above the State average effective tax rate but that had effective rates below the State average in the 1997‑1998 fiscal year or thereafter shall receive reduced funding under this section. This reduction in funding shall be determined by subtracting the amount that the county would have received pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws from the amount that the county would have received if qualified for full funding and multiplying the difference by ten percent (10%). This method of calculating reduced funding shall apply one time only. This method of calculating reduced funding shall not apply in cases in which the effective tax rate fell below the statewide average effective tax rate as a result of a reduction in the actual property tax rate. In these cases, the minimum effort required shall be calculated in accordance with Section 17.1(g) of Chapter 507 of the 1995 Session Laws. If the county documents that it has increased the per student appropriation to the school current expense fund in the current fiscal year, the State Board of Education shall include this additional per pupil appropriation when calculating minimum effort pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
SECTION 7.3.(g) Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2009‑2011 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety‑five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section. The State Board of Education shall adopt rules to implement this section.
SECTION 7.3.(h) Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2010, if it determines that counties have supplanted funds.
SECTION 7.3.(i) Department of Revenue Reports. – The Department of Revenue shall provide to the Department of Public Instruction a preliminary report for the current fiscal year of the assessed value of the property tax base for each county prior to March 1 of each year and a final report prior to May 1 of each year. The reports shall include for each county the annual sales assessment ratio and the taxable values of (i) total real property, (ii) the portion of total real property represented by the present‑use value of agricultural land, horticultural land, and forestland as defined in G.S. 105‑277.2, (iii) property of public service companies determined in accordance with Article 23 of Chapter 105 of the General Statutes, and (iv) personal property.
SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
SECTION 7.4.(a) Funds for Small School Systems. – Except as provided in subsection (b) of this section, the State Board of Education shall allocate funds appropriated for small school system supplemental funding (i) to each county school administrative unit with an average daily membership of fewer than 3,175 students and (ii) to each county school administrative unit with an average daily membership from 3,175 to 4,000 students if the county in which the local school administrative unit is located has a county‑adjusted property tax base per student that is below the State‑adjusted property tax base per student and if the total average daily membership of all local school administrative units located within the county is from 3,175 to 4,000 students. The allocation formula shall:
(1) Round all fractions of positions to the next whole position.
(2) Provide five and one‑half additional regular classroom teachers in counties in which the average daily membership per square mile is greater than four, and seven additional regular classroom teachers in counties in which the average daily membership per square mile is four or fewer.
(3) Provide additional program enhancement teachers adequate to offer the standard course of study.
(4) Change the duty‑free period allocation to one teacher assistant per 400 average daily membership.
(5) Provide a base for the consolidated funds allotment of at least seven hundred eighty‑eight thousand seven hundred eighty‑nine dollars ($788,789), excluding textbooks, for the 2009‑2010 fiscal year and a base of seven hundred eighty‑eight thousand seven hundred eighty‑nine dollars ($788,789) for the 2010‑2011 fiscal year.
(6) Allot vocational education funds for grade 6 as well as for grades 7‑12. If funds appropriated for each fiscal year for small school system supplemental funding are not adequate to fully fund the program, the State Board of Education shall reduce the amount allocated to each county school administrative unit on a pro rata basis. This formula is solely a basis for distribution of supplemental funding for certain county school administrative units and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for such county administrative units.
SECTION 7.4.(b) Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2009‑2011 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety‑five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section. The State Board of Education shall adopt rules to implement this section.
SECTION 7.4.(c) Phase‑Out Provisions. – If a local school administrative unit becomes ineligible for funding under this formula because of (i) an increase in the population of the county in which the local school administrative unit is located or (ii) an increase in the county‑adjusted property tax base per student of the county in which the local school administrative unit is located, funding for that unit shall be continued for nine years after the unit becomes ineligible.
SECTION 7.4.(d) Definitions. – As used in this section:
(1) "Average daily membership" means within two percent (2%) of the average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual adopted by the State Board of Education.
(2) "County‑adjusted property tax base per student" means the total assessed property valuation for each county, adjusted using a weighted average of the three most recent annual sales assessment ratio studies, divided by the total number of students in average daily membership who reside within the county.
(3) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(4) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(5) "State‑adjusted property tax base per student" means the sum of all county‑adjusted property tax bases divided by the total number of students in average daily membership who reside within the State.
(6) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(7) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued during the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.4.(e) Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2010, if it determines that counties have supplanted funds.
SECTION 7.4.(f) Use of Funds. – Local boards of education are encouraged to use at least twenty percent (20%) of the funds they receive pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 and children who are performing at Level I or II on the writing tests in grades 4 and 7.
REPLACEMENT SCHOOL BUSES/FUNDS
SECTION 7.5.(a) The State Board of Education may impose any of the following conditions on allotments to local boards of education for replacement school buses:
(1) The local board of education shall use the funds only to make the first, second, third, or fourth year's payment on a financing contract entered into pursuant to G.S. 115C‑528.
(2) The term of a financing contract entered into under this section shall not exceed four years.
(3) The local board of education shall purchase the buses only from vendors selected by the State Board of Education and on terms approved by the State Board of Education.
(4) The Department of Administration, Division of Purchase and Contract, in cooperation with the State Board of Education, shall solicit bids for the direct purchase of school buses and activity buses and shall establish a statewide term contract for use by the State Board of Education. Local boards of education and other agencies shall be eligible to purchase from the statewide term contract. The State Board of Education shall also solicit bids for the financing of school buses.
(5) A bus financed pursuant to this section shall meet all federal motor vehicle safety regulations for school buses.
(6) Any other condition the State Board of Education considers appropriate.
SECTION 7.5.(b) Any term contract for the purchase or lease‑purchase of school buses or school activity buses shall not require vendor payment of the electronic procurement transaction fee of the North Carolina E‑Procurement Service.
DISCREPANCIES BETWEEN ANTICIPATED AND ACTUAL ADM
SECTION 7.6.(a) If the State Board of Education does not have sufficient resources in the ADM Contingency Reserve line item to make allotment adjustments in accordance with the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual, the State Board of Education may use funds appropriated to State Aid for Public Schools for this purpose.
SECTION 7.6.(b) If the higher of the first or second month average daily membership in a local school administrative unit is at least two percent (2%) or 100 students lower than the anticipated average daily membership used for allotments for the unit, the State Board of Education shall reduce allotments for the unit. The reduced allotments shall be based on the higher of the first or second month average daily membership plus one‑half of the number of students overestimated in the anticipated average daily membership.
The allotments reduced pursuant to this subsection shall include only those allotments that may be increased pursuant to the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual.
SECTION 7.7. The State Board of Education may expend up to five hundred thousand dollars ($500,000) each year for the 2009‑2010 and 2010‑2011 fiscal years from unexpended funds for certified employees' salaries to pay expenses related to litigation.
SECTION 7.8.(a) The State Board of Education may implement temporary modifications to the limitations on budget flexibility set out in G.S. 115C‑105.25. For the 2009‑2010 and 2010‑2011 fiscal years, local school administrators shall make every effort to reduce spending whenever and wherever such budget reductions are appropriate as long as the targeted reductions do not directly impact classroom services or any services for students at risk or children with special needs.
SECTION 7.8.(b) Within 14 days of the date this act becomes law, the State Board of Education shall notify each local school administrative unit and charter school of the amount the unit shall reduce from the State General Fund appropriations. The State Board shall determine the amount of the reduction for each unit on the basis of average daily membership.
SECTION 7.8.(c) Each unit shall report to the Department of Public Instruction on the flexibility budget reductions it has identified for the unit within 30 days of the date this act becomes law.
NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS
SECTION 7.9.(a) Beginning with the 2010‑2011 fiscal year, the State Board of Education shall implement an allotment formula for e‑learning developed pursuant to Section 7.16(d) of S.L. 2006‑66.
The North Carolina Virtual Public School (NCVPS) shall be available at no cost to all high school 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.
SECTION 7.9.(b) In order to ensure funds are available to operate NCVPS for the 2009‑2010 fiscal year, the State Board of Education shall use funding sources in the following order:
(1) The General Fund appropriation for NCVPS;
(2) Available funds received under the American Recovery and Reinvestment Act;
(3) Up to six million dollars ($6,000,000) of funds appropriated for school technology;
(4) Funds from the State Public School Fund.
SECTION 7.9.(c) NCVPS courses shall be available only to high school students.
SECTION 7.9.(d) The State Board of Education shall report to the Joint Legislative Education Oversight Committee and the Fiscal Research Division by December 15, 2009, on its implementation of this section.
SECTION 7.10.(a) Funds are appropriated in this act for the Learn and Earn Online program. This program will allow high school students to enroll in college courses to qualify for college credit. Online courses shall be made available to students through The University of North Carolina and the North Carolina Community College System.
SECTION 7.10.(b) Funds shall be used for:
(1) Course tuition and only those technology and course fees and textbooks required for course participation; and
(2) A liaison position in the Department of Public Instruction to coordinate with The University of North Carolina and the North Carolina Community College System and to communicate course availability and related information to high school administrators, teachers, and counselors.
SECTION 7.10.(c) The State Board of Education shall determine the allocation of Learn and Earn Online course offerings across the State.
SECTION 7.10.(d) The State Board of Education shall allot funds for tuition, fees, and textbooks on the basis of and after verification of the credit hour enrollment of high school students in Learn and Earn Online courses. The Office of State Budget and Management shall transfer sufficient funds from the State Public School Fund to the Community Colleges System Office for courses offered by community colleges.
SECTION 7.10.(e) The University of North Carolina program shall report to The University of North Carolina Board of Governors, and the North Carolina Community College program shall report to the State Board of Community Colleges. The Department of Public Instruction shall report to the State Board of Education.
SECTION 7.10.(f) Both The University of North Carolina and the North Carolina Community College System shall provide oversight and coordination, including coordination with the Department of Public Instruction and with the North Carolina Virtual Public School (NCVPS), to avoid course duplication.
SECTION 7.10.(g) The programs shall establish course quality and rigor standards and shall conduct course evaluations to ensure that the online courses meet the established standards.
SECTION 7.10.(h) Local school administrative units may purchase textbooks for Learn and Earn Online courses through the Department of Public Instruction's textbook warehouse in the same manner as textbooks that have been adopted for public school students by the State Board of Education.
SECTION 7.10.(i) 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 7.10.(j) Subsection (i) of this section becomes effective June 30, 2009.
SECTION 7.11. Notwithstanding G.S. 115C‑105.36, the State Board of Education shall place a one‑year moratorium on financial awards paid to school personnel in the 2009‑2010 fiscal year based on 2008‑2009 student academic performance.
The State Board of Education shall develop a plan to restructure the ABCs Accountability System and report the restructuring plan to the Governor and General Assembly by January 31, 2010.
SCHOOL CONNECTIVITY INITIATIVE
SECTION 7.12.(a) Up to three hundred thousand dollars ($300,000) may be transferred annually to the Office of the Governor for NC Virtual (NCV) within the Education Cabinet. These funds may be used for services to coordinate e‑learning activities across all State educational agencies.
SECTION 7.12.(b) Of the funds allocated for the School Connectivity Initiative, the sum of two hundred fifty thousand dollars ($250,000) may be used annually to sustain the Education E‑Learning Portal.
SECTION 7.12.(c) Section 7.6(a) of S.L. 2008‑107 reads as rewritten:
"SECTION 7.6.(a) Up to six three
hundred thousand dollars ($600,000)($300,000) may be
transferred annually through June 30, 2013, 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, including
recommendations for continued implementation of the school connectivity
initiative that improves teaching and learning. results."
SECTION 7.12.(d) 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 7.12.(e) Subsection (d) of this section becomes effective on June 30, 2009.
SECTION 7.13.(a) Dropout Prevention Grants. – The Committee on Dropout Prevention, as reestablished in Section 7.14 of S.L. 2008‑107, may use funds appropriated in this act to provide grants to new recipients or to extend additional funding to organizations that received funding previously.
SECTION 7.13.(b) 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) 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.
(4) Grants may be made to local school administrative units, schools, local agencies, or nonprofit organizations.
(5) Grants shall be to programs and initiatives that hold all students to high academic and personal standards.
(6) 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.
(7) 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.
(8) Priority for grants shall be given to proposals that demonstrate input from the local community and coordination with other available programs or resources.
(9) Grantees shall assure their compliance with applicable laws and rules regulating conflicts of interest.
(10) 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%). 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.
(11) The demonstrated need for a grant, level of collaboration, ability to increase attendance, persistence, academic success, ability to increase parental involvement, and graduation shall be given more weight than the quality of the written grant.
(12) Grants shall be made no later than November 1, 2009.
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, 2010.
SECTION 7.13.(c) Evaluation. – The Committee shall evaluate the impact of the dropout prevention grants awarded 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 students 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 this section shall report to the Committee on Dropout Prevention by January 31, 2011, and by September 30, 2011. The reports shall provide information to assist the Committee in conducting its evaluation. The reports shall include a statement that the recipients used grant funds for the purposes appropriated by the General Assembly and complied with applicable laws, regulations, and terms and conditions of the grant documents. The Committee shall make an interim report of the results of its evaluation of the grants awarded under this section by March 31, 2011, 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, 2011, to the Joint Legislative Commission on Dropout Prevention and High School Graduation and to the Joint Legislative Education Oversight Committee.
SECTION 7.13.(d) Of the funds appropriated in this act for the Committee on Dropout Prevention, the sum of one million dollars ($1,000,000) for the 2009‑2010 and 2010‑2011 fiscal years shall be used to award new grants, as well as additional grants to previous grant recipients, in accordance with subsection (b) of this section.
SECTION 7.13.(e) Funds appropriated for the dropout prevention grants for the 2009‑2010 fiscal year and the 2010‑2011 fiscal year shall not revert but shall remain available for expenditure until August 31, 2011.
SECTION 7.13.(f) Of the funds appropriated for the dropout prevention grants, the sum of one hundred thousand dollars ($100,000) for the 2009‑2010 and 2010‑2011 fiscal years 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 7.13.(g) Of the funds appropriated for the dropout prevention grants, the Department of Public Instruction may use up to fifty thousand dollars ($50,000) in fiscal years 2009‑2010 and 2010‑2011 for its administrative assistance to the Committee and provide technical assistance under this section.
DEPARTMENT OF PUBLIC INSTRUCTION/budget flexibility
SECTION 7.14. Notwithstanding G.S. 143C‑6‑4, the Department of Public Instruction may reorganize, if necessary, to implement the budget reductions set out in this act. The Department shall report to the Joint Legislative Commission on Governmental Operations on any reorganization.
BUSINESS EDUCATION TECHNOLOGY ALLIANCE
SECTION 7.15. G.S. 115C‑102.15 is repealed.
CRITICAL FOREIGN LANGUAGE PILOT FUNDS DO NOT REVERT
SECTION 7.16.(a) Funds appropriated for the Critical Foreign Language Pilot that are unexpended or unencumbered shall not revert but shall remain available for expenditure through June 30, 2010.
SECTION 7.16.(b) This section becomes effective June 30, 2009.
north carolina 1:1 learning project
SECTION 7.17.(a) Funds appropriated for the North Carolina 1:1 Learning Project that are unexpended or unencumbered at the end of the 2008‑2009 fiscal year shall not revert but shall remain available for expenditure through June 30, 2010.
SECTION 7.17.(b) This section becomes effective June 30, 2009.
SECTION 7.18.(a) Funds appropriated in this act for assessment and accountability shall be used to develop new end‑of‑course and end‑of‑grade tests, identify national assessments, or both, as determined by the State Board of Education. The development of any new tests replacing end‑of‑course and end‑of‑grade tests shall be aligned with the new essential standards and included in the State Board of Education's new accountability restructuring plan.
SECTION 7.18.(b) Notwithstanding G.S. 115C‑174.11, the State Board of Education shall investigate and pilot a developmentally appropriate diagnostic assessment for students in elementary grades during the 2009‑2010 school year. This assessment will (i) enable teachers to determine student learning needs and individualize instruction and (ii) ensure that students are adequately prepared for the next level of coursework as set out by the standard course of study.
The State Board of Education shall report the results of the pilot to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management, by December 1, 2010.
SECTION 7.18.(c) Funds appropriated for assessment and accountability that remain unexpended and unencumbered at the end of the 2009‑2010 fiscal year shall not revert but shall remain available for expenditure through June 30, 2011.
DEVELOPMENT OF A PREK‑20 DATA SYSTEM
SECTION 7.19.(a) The Department of Public Instruction, the North Carolina Community College System, and The University of North Carolina shall collaboratively develop and systematically determine the technical specifications and data standards for a PreK‑20 data system to centralize student data collected about students enrolled in prekindergarten programs through doctoral programs. The PreK‑20 data system shall build upon the current capacity, programs, and initiatives of the Department of Public Instruction, the North Carolina Community College System, and The University of North Carolina.
The Department of Public Instruction, the North Carolina Community College System, and The University of North Carolina shall also collaboratively develop a strategy for tracking students for five years after they complete their education at a North Carolina public educational institution.
SECTION 7.19.(b) The PreK‑20 data standards and specifications shall include:
(1) The types and forms of data to be included in a PreK‑20 data system, including longitudinal data and the use of a unique student identifier;
(2) The capacity of a shared PreK‑20 data system;
(3) The degree and extent of cooperation between a shared PreK‑20 data system and the current data collection systems of the Department of Public Instruction, the North Carolina Community College System, and The University of North Carolina;
(4) The minimum capacity and technical specifications needed for each data system to feed into a shared PreK‑20 data system; and
(5) The ability for data in a shared PreK‑20 data system to be understood and used by interested stakeholders, including federal and other State agencies.
SECTION 7.19.(c) Standards and specifications shall conform to the guidelines and instructions governing any funds received through the American Recovery and Reinvestment Act of 2009 for this purpose.
SECTION 7.19.(d) Standards and specifications shall be submitted to the Education Cabinet no later than January 1, 2010. The Education Cabinet shall review these standards and submit its recommendations regarding them to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management by March 1, 2010.
SECTION 7.20.(a) The State Board of Education shall identify and eliminate certain unnecessary or duplicative tests not required by the federal government for No Child Left Behind (NCLB) to determine Adequate Yearly Progress (AYP).
SECTION 7.20.(b) G.S. 115C‑174.10 reads as rewritten:
"§ 115C‑174.10. Purposes of the Statewide Testing Program.
The three testing programs in this Article have three
purposes: (i) to assure that all high school graduates possess those minimum
skills and that knowledge thought necessary to function as a member of society;
(ii) to provide a means of identifying strengths and weaknesses in the
education process in order to improve instructional delivery; and (iii) to
establish additional means for making the education system at the State, local,
and school levels accountable to the public for results."
SECTION 7.20.(c) G.S. 115C‑174.11 reads as rewritten:
"§ 115C‑174.11. Components of the testing program.
(a) Assessment Instruments for First and Second Grades. – The State Board of Education shall adopt and provide to the local school administrative units developmentally appropriate individualized assessment instruments consistent with the Basic Education Program for the first and second grades, rather than standardized tests. Local school administrative units may use these assessment instruments provided to them by the State Board for first and second grade students, and shall not use standardized tests except as required as a condition of receiving a federal grant under the Reading First Program.
(b) Competency Testing Program.
(1) The State Board of Education shall adopt
tests or other measurement devices which may be used to assure that graduates
of the public high schools and graduates of nonpublic schools supervised by the
State Board of Education pursuant to the provisions of Part 1 of Article 39 of
this Chapter possess the skills and knowledge necessary to function independently
and successfully in assuming the responsibilities of citizenship.
(2) The tests shall be administered annually
to all ninth grade students in the public schools. Students who fail to attain
the required minimum standard for graduation in the ninth grade shall be given
remedial instruction and additional opportunities to take the test up to and
including the last month of the twelfth grade. Students who fail to pass parts
of the test shall be retested on only those parts they fail. Students in the
ninth grade who are enrolled in special education programs or who have been
officially designated as eligible for participation in such programs may be
excluded from the testing programs.
(3) The State Board of Education shall:
a. Adopt one or more nationally standardized
tests or other nationally standardized equivalent measures that measure
competencies in the verbal and quantitative areas; or
b. Develop and validate alternate means and
standards for demonstrating minimum competence. These standards must be as difficult
as the tests adopted pursuant to subdivision (1) of this subsection.
The State Board of Education shall
adopt a policy to identify which students and under what circumstances students
may pass one of these tests in lieu of the testing requirement of subdivision
(2) of this subsection.
(3a) Students with disabilities who fail to
pass the competency test adopted pursuant to subdivision (2) of this subsection
after two attempts shall be given the opportunity to take and pass one of the
alternate tests adopted pursuant to subdivision (3) of this subsection.
(4) Repealed by Session Laws 1996, Second Extra Session, c. 18, s. 18.14.
(c) Annual Testing Program.
(1) The State Board of Education shall adopt a
system of annual testing the tests for grades three through 12. 12
that are required by federal law or as a condition of a federal grant. These
tests shall be designed to measure progress toward reading, communication
skills, and mathematics for grades three through eight, and toward competencies
designated by the State Board for grades nine through 12. The State
Board may develop and implement a plan for high school end‑of‑course
tests that must be aligned with the content standards developed under G.S. 115C‑12(9c).
Students who do not pass the tests adopted for eighth grade shall be
provided remedial instruction in the ninth grade. This assistance shall be
calculated to prepare the students to pass the competency test administered
under subsection (b) of this section.
(2) If the State Board of Education finds that additional testing in grades three through 12 is desirable to allow comparisons with national indicators of student achievement, that testing shall be conducted with the smallest size sample of students necessary to assure valid comparisons with other states.
(d) The State Board of Education shall not require the public schools to administer any standardized tests except for those required by federal law or as a condition of a federal grant.
The State Board of Education shall adopt and provide to local school administrative units all tests required by federal law or as a condition of a federal grant."
SECTION 7.20.(d) G.S. 115C‑174.12 reads as rewritten:
"§ 115C‑174.12. Responsibilities of agencies.
(a) The State Board of Education shall establish policies and guidelines necessary for minimizing the time students spend taking tests administered through State and local testing programs, for minimizing the frequency of field testing at any one school, and for otherwise carrying out the provisions of this Article. These policies and guidelines shall include the following:
(1) Schools shall devote no more than two days of instructional time per year to the taking of practice tests that do not have the primary purpose of assessing current student learning;
(2) Students in a school shall not be subject to field
tests or national tests other standardized tests during the two‑week
period preceding the administration of end‑of‑grade tests, end‑of‑course
tests, or the school's regularly scheduled final exams; and
(3) No school shall participate in more than two field tests at any one grade level during a school year unless that school volunteers, through a vote of its school improvement team, to participate in an expanded number of field tests.
These policies shall reflect standard testing practices to insure reliability and validity of the sample testing. The results of the field tests shall be used in the final design of each test. The State Board of Education's policies regarding the testing of children with disabilities shall (i) provide broad accommodations and alternate methods of assessment that are consistent with a child's individualized education program and section 504 (29 U.S.C. § 794) plans, (ii) prohibit the use of statewide tests as the sole determinant of decisions about a child's graduation or promotion, and (iii) provide parents with information about the Statewide Testing Program and options for students with disabilities. The State Board shall report its proposed policies and proposed changes in policies to the Joint Legislative Education Oversight Committee prior to adoption.
The State Board of Education may appoint an Advisory Council on Testing to assist in carrying out its responsibilities under this Article.
(b) The Superintendent of Public InstructionChief
Executive Officer shall be responsible, under policies adopted by the State
Board of Education, for the statewide administration of the testing program
provided by this Article.
(b1) The Superintendent Chief Executive
Officer shall notify local boards of education by October 1 of each year of
any field tests that will be administered in their schools during the school
year, the schools at which the field tests will be administered, and the
specific field tests that will be administered at each school.
(c) Local boards of education shall cooperate with the
State Board of Education in implementing the provisions of this Article,
including the regulations and policies established by the State Board of
Education. Local school administrative units shall use the annual and
competency testing programs tests to fulfill the purposes set out in
this Article. Local school administrative units are encouraged to continue to
develop local testing programs designed to diagnose student needs further.needs."
reMove barriers to lateral entry into teaching
SECTION 7.21.(a) The State Board of Education shall:
(1) Review the lateral entry program and identify and remove from it barriers to the lateral entry of skilled individuals from the private sector into the teaching profession;
(2) Reduce the coursework requirements for lateral entry by consolidating the required competencies into fewer courses and fewer semester hours of coursework; and
(3) Provide additional opportunities for individuals to complete coursework online and at community colleges.
SECTION 7.21.(b) The State Board of Education shall report to the Joint Legislative Education Oversight Committee by January 15, 2010, on its implementation of this section.
no pay decrease for teachers who become assistant principals
SECTION 7.22.(a) G.S. 115C‑285(a) is amended by adding a new subdivision to read:
"§ 115C‑285. Salary.
(a) Principals and supervisors shall be paid promptly when their salaries are due provided the legal requirements for their employment and service have been met. All principals and supervisors employed by any local school administrative unit who are to be paid from local funds shall be paid promptly as provided by law and as State‑allotted principals and supervisors are paid.
Principals and supervisors paid from State funds shall be paid as follows:
…
(8) A teacher who becomes an assistant principal without a break in service shall be paid, on a monthly basis, at least as much as he or she would earn as a teacher employed by that local school administrative unit."
SECTION 7.22.(b) This section becomes effective July 1, 2009, and applies to all persons initially employed as assistant principals on or after that date.
SECTION 7.23. Notwithstanding any other provision of law, the allotment ratios, the maximum class size, and the maximum average class size limits for each grade level in the public schools shall be two students higher beginning with the 2009‑2010 school year than they were for the 2008‑2009 school year.
It is the intent of the General Assembly that this increase remain in effect for a maximum of two years and that lower class sizes be restored as soon as State revenues make it fiscally responsible to do so.
Fund Only One School System Per County.
SECTION 7.24.(a) Notwithstanding any other provision of law, beginning with the 2010‑2011 fiscal year, the State Board of Education shall allot State funds on the basis of only one local school administrative unit per county. To implement this change, the State Board shall change formulas that allot funds on a per local school administrative unit basis to formulas that allot funds on a per county basis. If the amount previously allotted per local school administrative unit was graduated on the basis of average daily membership, the amount allotted per county shall be graduated on the basis of the total average daily membership of all units located in the county.
If a city school administrative unit is located in more than one county, the State Board of Education shall include in each county's average daily membership the average daily membership of the county's students in the city school administrative unit.
If a county contains more than one local school administrative unit, the State Board shall divide the amount allotted on a per county basis between the units on the basis of average daily membership.
SECTION 7.24.(b) This section does not apply to allotments to the Nash‑Rocky Mount School Administrative Unit, the Edgecombe County School Administrative Unit, the Cleveland County School Administrative Unit, or the Gaston County School Administrative Unit.
deposit public school building capital funds into state public school fund
SECTION 7.25. Notwithstanding the provisions of G.S. 115C‑546.1(b), the Secretary of Revenue shall not remit any funds for credit to the Public School Building Capital Fund during the 2009‑2011 fiscal biennium but shall deposit in the State Public School Fund the funds that would have otherwise been deposited in the Public School Building Capital Fund pursuant to G.S. 115C‑546.1(b). The Department of Public Instruction may continue to use these funds to support six positions in the School Planning Division.
teachers for geographically isolated K‑12 schools
SECTION 7.26. The State Board of Education shall modify its policy on the allotment of additional classroom teachers to schools containing grades K‑12 when consolidation is not feasible due to the geographic isolation of the school. In administering this policy with regard to a school located in a local school administrative unit in which the average daily membership is less than 1.5 per square mile, the State Board of Education shall, at a minimum:
(1) Allot teachers to the geographically isolated school on the basis of one classroom teacher per grade level; and
(2) Allot teachers to the remainder of the local school administrative unit under the regular teacher allotment formula.
The State Board of Education may allot additional teachers to the local school administrative unit if demographic conditions warrant.
ensure access to the evaas system
SECTION 7.27. The State Board of Education shall use funds appropriated to the State Public School Fund for the 2009‑2011 fiscal biennium to ensure that all local school administrative units and charter schools have access to SAS EVAAS (Education Value Added Assessment System).
local boards must inform public about school report cards
SECTION 7.28. G.S. 115C‑47 is amended by adding a new subdivision to read:
"§ 115C‑47. Powers and duties generally.
In addition to the powers and duties designated in G.S. 115C‑36, local boards of education shall have the power or duty:
…
(53) To Inform the Public About the North Carolina School Report Cards Issued by the State Board of Education. – Each local board of education shall ensure that the report card issued for it by the State Board of Education receives wide distribution to the local press or otherwise."
plan for statewide motor coach permit
SECTION 7.29.(a) The State Board of Education, in conjunction with the Division of Motor Vehicles, shall develop a plan for a Statewide permit for commercial motor coach companies that seek to contract with local school systems to transport students, school personnel, and other persons authorized by the school system on school‑sponsored trips. The purpose of the permit shall be (i) to ensure student safety, (ii) to ensure safe operations by motor coach companies, (iii) to minimize paperwork, (iv) to minimize visits to the motor coach companies by local school systems, and (v) to minimize the need for motor coach companies to respond to multiple requests for information from multiple local school systems.
SECTION 7.29.(b) In developing the plan for a permit, the State Board of Education and the Division of Motor Vehicles shall consult with the North Carolina School Boards Association, the State Highway Patrol, the North Carolina Pupil Transportation Association, the North Carolina Motor Coach Association, the Federal Motor Carrier Safety Administration, and other interested parties.
SECTION 7.29.(c) The components of the plan shall include, but not be limited to, all of the following:
(1) Scope of the permit.
(2) Standards for issuing the permit.
(3) Duration of the permit.
(4) Process for required inspections.
(5) Entity to conduct required inspections.
(6) Conditions for revoking the permit.
(7) Renewal process.
(8) Schedule of fees to cover the cost of implementation and administration.
(9) Application form and other required documentation.
(10) Dissemination of current permit holders to school systems.
(11) Estimate of costs to implement and number of new positions required.
(12) Impact on motor coach companies that have interstate operations.
(13) Other related issues.
SECTION 7.29.(d) The State Board of Education and the Division of Motor Vehicles shall consult on the proposed plan to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division by January 1, 2010. Before the plan is implemented, the Commission shall make any recommendations, including proposed legislation, to the 2010 General Assembly.
PART VIII. COMMUNITY COLLEGES
COMMUNITY COLLEGE FACULTY SALARY PLAN
(1) It is the intent of the General Assembly to encourage community colleges to make faculty salaries a priority and to reward colleges that have taken steps to achieve the national average community collage faculty salary, therefore:
a. If the average faculty salary at a community college is one hundred percent (100%) or more of the national average community college faculty salary, the college may transfer up to eight percent (8%) of the State funds allocated to it for faculty salaries.
b. If the average faculty salary at a community college is at least ninety‑five percent (95%) but less than one hundred percent (100%) of the national average community college faculty salary, the college may transfer up to six percent (6%) of the State funds allocated to it for faculty salaries.
c. If the average faculty salary at a community college is at least ninety percent (90%) but less than ninety‑five percent (95%) of the national average community college faculty salary, the college may transfer up to five percent (5%) of the State funds allocated to it for faculty salaries.
d. If the average faculty salary at a community college is at least eighty‑five percent (85%) but less than ninety percent (90%) of the national average community college faculty salary, the college may transfer up to three percent (3%) of the State funds allocated to it for faculty salaries.
e. If the average faculty salary at a community college is eighty‑five percent (85%) or less of the national average community college faculty salary, the college may transfer up to two percent (2%) of the State funds allocated to it for faculty salaries.
Except as provided by subdivision (2) of this subsection, a community college shall not transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by this subsection.
(2) With the approval of the State Board of Community Colleges, a community college at which the average faculty salary is eighty‑five percent (85%) or less of the national average may transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by sub‑subdivision e. of subdivision (1) of this subsection. The State Board shall approve the transfer only for purposes that directly affect student services.
The State Board of Community Colleges shall adopt guidelines to implement the provisions of this subdivision.
(3) A local community college may use all State funds allocated to it except for Literacy Funds and Funds for Customized Training to increase faculty salaries.
SECTION 8.1.(b) As used in this section:
(1) "Average faculty salary at a community college" means the total nine‑month salary from all sources of all nine‑month, full‑time, curriculum faculty at the college, as determined by the North Carolina Community College System on October 1 of each year.
(2) "National average community college faculty salary" means the nine‑month, full‑time, curriculum salary average, as published by the Integrated Postsecondary Education Data System (IPEDS), for the most recent year for which data are available.
SECTION 8.2. 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.
SECTION 8.3. 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 through the institutional support allotment for the 2009‑2010 and 2010‑2011 fiscal years 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.
FINANCIAL AID PROGRAM ADMINISTRATIVE COSTS
SECTION 8.4. G.S. 115D‑40.1(c) reads as rewritten:
"(c) Administration of Program. – The State Board shall adopt rules and policies for the disbursement of the financial assistance provided in this section. Degree, diploma, and certificate students must complete a Free Application for Federal Student Aid (FAFSA) to be eligible for financial assistance. The State Board may contract with the State Education Assistance Authority for administration of these financial assistance funds. These funds shall not revert at the end of each fiscal year but shall remain available until expended for need‑based financial assistance.
The State Board shall ensure that at least one counselor is available at each college to inform students about federal programs and funds available to assist community college students including, but not limited to, Pell Grants and HOPE and Lifetime Learning Tax Credits and to actively encourage students to utilize these federal programs and funds. The interest earned on the funds provided in this section may be used to support the costs of administering the Community College Grant Program."
CARRYFORWARD OF NORTH CAROLINA RESEARCH CAMPUS BIOTECHNOLOGY TRAINING FUNDS
SECTION 8.5.(a) Funds appropriated in S.L. 2006‑66, S.L. 2007‑323, and S.L. 2008‑103 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 8.5.(b) This section becomes effective June 30, 2009.
SECTION 8.6.(a) Funds reimbursed to the Community College System for full‑time equivalent students participating in Learn and Earn Online courses during the 2008‑2009 and 2009‑2010 fiscal years shall not revert at the end of the fiscal year, but shall remain available for expenditure up to 12 months after the close of a fiscal year.
SECTION 8.6.(b) Community college student enrollments in Learn and Earn Online shall be considered regular budget full‑time equivalent in the curriculum enrollment formula regardless of the term during which the instruction is provided. The North Carolina Community College System may only seek reimbursement from the Department of Public Instruction for technology, course fees, and textbooks required for course participation.
SECTION 8.6.(c) The Office of State Budget and Management shall transfer sufficient funds from the State Public School Fund to the Community Colleges System Office to implement subsection (b) of this section.
SECTION 8.6.(d) Subsection (a) of this section becomes effective June 30, 2009.
CARRYFORWARD OF COLLEGE INFORMATION SYSTEM FUNDS
SECTION 8.7.(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 be used to purchase periodic system upgrades.
SECTION 8.7.(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 if doing so is cost‑effective. 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 8.7.(c) Subsection (a) of this section becomes effective July 1, 2009.
MODIFY MULTICAMPUS AND OFF CAMPUS CENTER REPORT DATE
SECTION 8.8. G.S. 115D‑5(o) reads as rewritten:
"(o) The General Assembly finds that additional
data are needed to determine the adequacy of multicampus and off‑campus
center funds; therefore, multicampus colleges and colleges with off‑campus
centers shall report annually, beginning September 1, 2005, to the Community
Colleges System Office on all expenditures by line item of funds used to
support their multicampuses and off‑campus centers. The Community
Colleges System Office shall report on these expenditures to the Education
Appropriation Subcommittees of the House of Representatives and the Senate, the
Office of State Budget and Management, and the Fiscal Research Division by October
1 December 1 of each year."
REPEAL REPORT ON THE USE OF COMM COLL FACILITIES BY PRIVATE BUSINESSES
SECTION 8.9. G.S. 115D‑5(q) is repealed.
MAINTENANCE OF PLANT FLEXIBILITY
SECTION 8.10. Notwithstanding any other provision of law, a community college that received State funds for maintenance of plant pursuant to G.S. 115D‑31.2 for the 2008‑2009 fiscal year may use noninstructional State funds allocated to it through the institutional support allotment for maintenance of plant for the 2009‑2010 and 2010‑2011 fiscal years.
The amount of these funds used for the 2009‑2010 fiscal year for maintenance of plant shall not exceed the total amount of maintenance of plant funds received for the 2008‑2009 fiscal year. The amount of these funds used for the 2010‑2011 fiscal year for maintenance of plant shall not exceed fifty percent (50%) of the amount of maintenance of plant funds received for the 2008‑2009 fiscal year.
Requested by: Senator
ELIMINATE SOME TUITION WAIVERS
SECTION 8.11.(a) 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, Customized Training 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, members 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, 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
(b1) The State Board shall waive tuition and fees for 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.
The State Board also shall waive tuition and fees for persons not enrolled in elementary or secondary schools taking courses leading to a high school diploma or equivalent certificate.
SECTION 8.11.(b) G.S. 115B‑2 reads as rewritten:
"§ 115B‑2. Tuition waiver authorized.
(a) The constituent institutions of The University of
North Carolina and the community colleges as defined in G.S. 115D‑2(2)
shall permit the following persons to attend classes for credit or
noncredit purposes without the required payment of tuition:
(1) Legal residents of North Carolina who have attained the age of 65.
(2) Any person who is the survivor of a law enforcement officer, firefighter, volunteer firefighter, or rescue squad worker killed as a direct result of a traumatic injury sustained in the line of duty.
(3) The spouse of a law enforcement officer, firefighter, volunteer firefighter, or rescue squad worker who is permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty.
(4) Any child, if the child is at least 17 years old but not yet 23 years old, whose parent is a law enforcement officer, firefighter, volunteer firefighter, or rescue squad worker who is permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty. However, a child's eligibility for a waiver of tuition under this Chapter shall not exceed: (i) 48 months, if the child is seeking a baccalaureate degree, or (ii) if the child is not seeking a baccalaureate degree, the number of months required to complete the educational program to which the child is applying.
(5) Any child, if the child (i) is at least 17 years old but not yet 23 years old, (ii) is a ward of North Carolina or was a ward of the State at the time the child reached the age of 18, (iii) is a resident of the State; and (iv) is eligible for services under the Chaffee Education and Training Vouchers Program; but the waiver shall only be to the extent that there is any tuition still payable after receipt of other financial aid received by the student.
The community colleges as defined in G.S. 115D‑2(2) shall permit the persons listed in subdivisions (2) through (5) of this subsection to attend classes for credit or noncredit purposes without the required payment of tuition.
(b) Persons eligible for the tuition waiver under subsection (a) of this section must meet admission and other standards considered appropriate by the educational institution. In addition, the constituent institutions of The University of North Carolina shall accept these persons only on a space available basis."
SECTION 8.11.(c) G.S. 115B‑5(a) is repealed.
SECTION 8.12. The fees charged for community college continuing education courses shall be based on the number of hours of class time. The fees shall be:
Class Hours Cost
1‑20 $65.00;
21‑50 $120.00;
51‑100+ $175.00.
CONSOLIDATE NURSING AND ALLIED HEALTH ALLOTMENTS
SECTION 8.13. The State Board of Community Colleges shall consolidate the Nursing categorical allotment into the Allied Health categorical allotment before distributing funds appropriated in this act. These funds shall be awarded to community colleges based on the full‑time equivalent (FTE) enrollment in allied health programs.
SECTION 8.14.(a) Funds appropriated in this act for the Customized Training Program that unexpended and unencumbered on June 30, 2010, may, subject to cash availability and the approval of the Office of State Budget and Management, be carried forward into the 2010‑2011 fiscal year for equipment purchases. These funds shall be distributed through the Educational Equipment Reserve.
SECTION 8.14.(b) Projects that create or retain jobs in North Carolina shall receive first priority for funds appropriated for the Customized Training Program.
SECTION 8.14.(c) G.S. 115D‑5.1(f) is amended by adding a new subsection to read:
"(f) The State Board shall report on an annual basis to the Joint Legislative Education Oversight Committee on:
…
(1a) The types of services sought by the company, whether for new, expanding, or existing industry."
COMMUNITY COLLEGE FINANCIAL ASSISTANCE FUND BALANCE SHALL BE USED TO OFFER NEED‑BASED AID
SECTION 8.15. The balance remaining in Budget Code 66801, Fund 6102 (CCS Financial Assistance) shall be used in the 2009‑2010 fiscal year to offer need‑based assistance to displaced workers and qualified students. This balance has accumulated due to financial aid refunds received from students in fiscal year 2008‑2009 and prior fiscal years.
Requested by: Senators Malone, Stevens
north carolina military business center
SECTION 8.16. The funds appropriated in this act to the Community Colleges System Office for the NC Military Business Center shall be used for the continued operations of the NC Military Business Center. The Military Business Center shall provide services to residents and businesses throughout the State. The purpose of the business center is to serve as a coordinator and facilitator for small‑ and medium‑sized businesses throughout the State seeking to win and complete federal contracts, with a focus on military‑related contracts. Activities of the business center shall include:
(1) Training and mentoring eligible businesses on effectively marketing their products and services to military and other federal clients and contracting offices.
(2) Assisting eligible businesses with any required accreditations and qualifications for government contracting.
(3) Teaching eligible businesses about federal set‑aside programs and how to take advantage of these programs directly or through partnering with other eligible businesses.
(4) Training and assisting clients with the registration, proposal development, and bidding processes related to military and other federal contracts.
(5) Training eligible businesses on legal and regulatory compliance.
(6) Designing and implementing mentoring programs to facilitate the development of interrelationships between eligible businesses.
(7) Forecasting the need for and assisting eligible businesses in obtaining advanced certifications and accreditations and advanced manufacturing skills and technologies.
(8) Working with Small Business Centers throughout the State to carry out these activities on a statewide basis.
(9) The maintenance of an Internet‑based system to match the knowledge, skills, and abilities of active‑duty military personnel, veterans, and their families throughout the State with the needs of North Carolina businesses.
(10) The study of community resources and existing business capacity to meet the current and future needs of the military and the development of proposals for further developing community resources and developing or recruiting new businesses to meet those needs.
(11) The marketing of the services provided by the Military Business Center.
PART IX. UNIVERSITIES
USE OF ESCHEAT FUNDS FOR NEED‑BASED FINANCIAL AID PROGRAMS
SECTION 9.1.(a) There is appropriated from the Escheat Fund income to the Board of Governors of The University of North Carolina the sum of one hundred twenty‑three million six hundred forty‑one thousand forty dollars ($123,641,040) for fiscal years 2009‑2010 and 2010‑2011, to the State Board of Community Colleges the sum of thirteen million nine hundred eighty‑one thousand two hundred two dollars ($13,981,202) for 2009‑2010 and 2010‑2011, and to the Department of Administration, Division of Veterans Affairs, the sum of six million five hundred twenty thousand nine hundred sixty‑four dollars ($6,520,964) for years 2009‑2010 and 2010‑2011. These funds shall be allocated by the State Educational Assistance Authority (SEAA) for need‑based student financial aid in accordance with G.S. 116B‑7. If the interest income generated from the Escheat Fund is less than the amounts referenced in this section, the difference may be taken from the Escheat Fund principal to reach the appropriations referenced in this section; however, under no circumstances shall the Escheat Fund principal be reduced below the sum required in G.S. 116B‑6(f).
SECTION 9.1.(b) The State Education Assistance Authority shall perform all of the administrative functions necessary to implement this program of financial aid. The SEAA shall conduct periodic evaluations of expenditures of the Scholarship Programs to determine if allocations are utilized to ensure access to institutions of higher learning and to meet the goals of the respective programs. SEAA may make recommendations for redistribution of funds to The University of North Carolina, Department of Administration, and the President of the Community College System regarding their respective scholarship programs, who then may authorize redistribution of unutilized funds for a particular fiscal year.
SECTION 9.1.(c) There is appropriated from the Escheat Fund to the Board of Governors of The University of North Carolina the sum of one million one hundred fifty‑seven thousand dollars ($1,157,000) for the 2010‑2011 fiscal year to be allocated to the SEAA for need‑based student financial aid to be used in accordance with G.S. 116B‑7 and this act. The SEAA shall use these funds only to provide scholarship loans (known as the Millennium Teaching Scholarship Loan Program) to North Carolina high school seniors interested in preparing to teach in the State's public schools who also enroll at any of the Historically Black Colleges and Universities that do not have Teaching Fellows. An allocation of 20 grants of six thousand five hundred dollars ($6,500) each shall be given to the three universities without any Teaching Fellows for the purposes specified in this subsection. The SEAA shall administer these funds and shall establish any additional criteria needed to award these scholarship loans, the conditions for forgiving the loans, and the collection of the loan repayments when necessary.
SECTION 9.1.(d) The State Education Assistance Authority shall transfer to the Escheat Fund the balance of any monies appropriated by this section that are not disbursed for need‑based student financial aid; however, the State Education Assistance Authority may retain the interest on those monies that is paid to the State Education Assistance Authority at the beginning of the 2009‑2010 fiscal year and at the beginning of the 2010‑2011 fiscal year.
THE EDUCATION ACCESS REWARDS NORTH CAROLINA SCHOLARS FUND (EARN)
SECTION 9.2.(a) Of the funds appropriated by this act from the General Fund to the State Education Assistance Authority the sum of sixty million dollars ($60,000,000) for the 2009‑2010 fiscal year and the sum of sixty million dollars ($60,000,000) for the 2010‑2011 fiscal year shall be allocated to the Education Access Rewards North Carolina Scholars Fund (EARN).
SECTION 9.2.(b) There is appropriated from the Escheat Fund to the State Education Assistance Authority the sum of forty million dollars ($40,000,000) for the 2009‑2010 fiscal year and the sum of forty million dollars ($40,000,000) for the 2010‑2011 fiscal year to be allocated to the Education Access Rewards North Carolina Scholars Fund (EARN).
SECTION 9.2.(c) The funds appropriated in subsections (a) and (b) of this section shall be used only to fund Education Access Rewards North Carolina Scholars Fund (EARN) grants for academic years beginning on or after July 1, 2009.
TRANSFERS OF CASH BALANCES TO THE GENERAL FUND
SECTION 9.3.(a) Notwithstanding any other provision of law, the unencumbered cash balance remaining in the Future Teachers Financial Aid fund on June 30, 2009, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers).
SECTION 9.3.(b) Notwithstanding any other provision of law, the unencumbered cash balance of the General Fund appropriation remaining in the Education Access Rewards North Carolina (EARN) Scholars fund on June 30, 2009, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers).
TRANSFER FUNDING TO ROANOKE ISLaND COMMISSION FOR performing ARTS
SECTION 9.4. The General Assembly finds that in order to expand opportunities for students involved in the performing arts, existing funding for the Summer Institute on Roanoke Island should not be allocated to one specific University of North Carolina institution, but instead be allocated directly to the Roanoke Island Commission, so that any interested University of North Carolina institution may have the opportunity to participate in summer arts enrichment and education programs. Therefore, of the funds appropriated by this act to the Board of Governors of The University of North Carolina and allocated to the Summer Institute of the North Carolina School of the Arts on Roanoke Island program for the 2009‑2011 fiscal biennium, the sum of four hundred sixty‑one thousand six hundred forty‑six dollars ($461,646) shall be transferred for the 2009‑2010 fiscal year to the Roanoke Island Commission and the sum of four hundred sixty‑one thousand six hundred forty‑six dollars ($461,646) shall be transferred for the 2010‑2011 fiscal year to the Roanoke Island Commission. The Roanoke Island Commission may use these funds to contract with any of the constituent institutions of The University of North Carolina System to provide music and drama students an education in a professional performing environment while providing a public service to the State.
UNC CENTER FOR ALCOHOL STUDIES
SECTION 9.5.(a) G.S. 20‑7(i1) reads as rewritten:
"(i1) Restoration Fee. – Any person whose drivers
license has been revoked pursuant to the provisions of this Chapter, other than
G.S. 20‑17(2), G.S. 20‑17(a)(2) shall pay a
restoration fee of fifty dollars ($50.00). A person whose drivers license has
been revoked under G.S. 20‑17(2) G.S. 20‑17(a)(2)
shall pay a restoration fee of seventy‑five dollars ($75.00) until
the end of the fiscal year in which the cumulative total amount of fees
deposited under this subsection in the General Fund exceeds ten million dollars
($10,000,000), and shall pay a restoration fee of fifty dollars ($50.00)
thereafter. seventy‑five dollars ($75.00). The fee shall be
paid to the Division prior to the issuance to such person of a new drivers
license or the restoration of the drivers license. The restoration fee shall be
paid to the Division in addition to any and all fees which may be provided by
law. This restoration fee shall not be required from any licensee whose license
was revoked or voluntarily surrendered for medical or health reasons whether or
not a medical evaluation was conducted pursuant to this Chapter. The fifty‑dollar
($50.00) fee, and the first fifty dollars ($50.00) of the seventy‑five‑dollar
($75.00) fee, shall be deposited in the Highway Fund. The remaining twenty‑five
dollars ($25.00) of the seventy‑five‑dollar ($75.00) fee shall be
deposited in the General Fund of the State. The Office of State Budget and
Management shall certify to the Department of Transportation and the General
Assembly when the cumulative total amount of fees deposited in the General Fund
under this subsection exceeds ten million dollars ($10,000,000), and shall
annually report to the General Assembly the amount of fees deposited in the
General Fund under this subsection.
It is the intent of the General Assembly to annually
appropriate from the funds deposited in the General Fund under this
subsection the sum of five hundred thousand dollars ($500,000) to the
Board of Governors of The University of North Carolina to be used for the operating
expenses of the Bowles Center for Alcohol Studies Endowment at The
the University of North Carolina at Chapel Hill, but not to
exceed this cumulative total of ten million dollars ($10,000,000).Hill."
SECTION 9.5.(b) Of the funds appropriated by this act to the Board of Governors of The University of North Carolina the sum of five hundred thousand dollars ($500,000) for the 2009‑2010 fiscal year and the sum of five hundred thousand dollars ($500,000) for the 2010‑2011 fiscal year shall be used for the operating expenses of the Bowles Center for Alcohol Studies at the University of North Carolina at Chapel Hill.
REPEAL FULL TUITION GRANT FOR GRADUATES OF NORTH CAROLINA SCHOOL OF SCIENCE AND MATHematics WHO ATTEND A STATE UNIVERSITY
SECTION 9.6.(a) G.S. 116‑238.1(a) reads as rewritten:
"(a) There is granted to each State resident who graduates from the North Carolina School of Science and Mathematics and who enrolls as a full‑time student in a constituent institution of The University of North Carolina a sum to be determined by the General Assembly as a tuition grant. The tuition grant shall be for four consecutive academic years and shall cover the tuition cost at the constituent institution in which the student is enrolled. The tuition grant shall be distributed to the student as provided by this section. The grant provided by this section is only available to a student enrolled at the North Carolina School of Science and Mathematics for the 2007‑2008 academic year or earlier."
SECTION 9.6.(b) Effective July 1, 2013, G.S. 116‑238.1, as amended by this section, is repealed.
CLOSING THE ACHIEVEMENT GAP/GRANTS
SECTION 9.7.(a) Funds appropriated by this act for the 2009‑2010 fiscal year and for the 2010‑2011 fiscal year to the Board of Governors of The University of North Carolina and allocated to the North Carolina Historically Minority Colleges and Universities Consortium (HMCUC) for "Closing the Achievement Gap," shall be used for the sole purpose of supporting the operations and program activities of the HMCUC. These funds shall be used by the HMCUC members for the public purposes of developing and implementing after‑school programs designed to close the academic achievement gap and improving the academic performance of youth at risk of academic failure and school dropout. The HMCUC may also allocate funds to a community‑based and faith‑based organization that is located in close proximity to the HMCUC member institution for the public purposes stated in this section.
SECTION 9.7.(b) The North Carolina Historically Minority Colleges and Universities Consortium shall report to the Joint Legislative Education Oversight Committee and to the Fiscal Research Division by May 1 of each year, regarding the number of programs funded by the Consortium to Close the Achievement Gap, the location and program structure of the programs, the amount allocated to the program, and purposes for which the funds were awarded, the cost of administering and managing the funds, 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.
Amend LEGISLATIVE Tuition Grant For Part‑time Students
SECTION 9.8.(a) G.S. 116‑21.2 reads as rewritten:
"§ 116‑21.2. Legislative tuition grants to aid students and licensure students attending private institutions of higher education.
(a) Grants for Students. – In addition to any funds
appropriated pursuant to G.S. 116‑19 and in addition to all other
financial assistance made available to institutions, or to persons attending
these institutions, there is granted to each North Carolina undergraduate
student attending an approved institution as defined in G.S. 116‑22,
a sum, to be determined by the General Assembly for each academic year which
shall be distributed to the undergraduate student as provided by this
subsection. A full‑time North Carolina undergraduate student shall be
awarded the full amount of the tuition grant provided by this section. A part‑time
North Carolina undergraduate student who is enrolled to take at least six nine
hours of academic credit per semester shall be awarded a tuition grant in
an amount that is calculated on a pro rata basis.
(a1) Grants for Licensure Students. – The legislative
tuition grant provided by this section shall also be granted to each full‑time
licensure student who is enrolled in a program intended to result in a license
in teaching or nursing at an approved institution. The legislative tuition
grant provided by this section shall be awarded on a pro rata basis to any part‑time
licensure student who is enrolled to take at least six nine hours
of undergraduate academic credit per semester in a program intended to result
in a license in teaching or nursing at an approved institution. The legislative
tuition grant and prorated legislative tuition grant authorized under this
subsection shall be paid for undergraduate courses only. If a course is
required for licensure, but is designated as both an undergraduate and graduate
course, for purposes of this subsection, the course shall be considered an
undergraduate course.
(b) Administration of Grants. – The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section. The State Education Assistance Authority shall not approve any grant until it receives proper certification from an approved institution that the student or licensure student applying for the grant is eligible. Upon receipt of the certification, the State Education Assistance Authority shall remit at the times as it prescribes the grant to the approved institution on behalf, and to the credit, of the student or licensure student.
(c) Student or Licensure Student Change of Status;
Audits. – In the event a full‑time student on whose behalf a grant has
been paid in accordance with subsection (a) of this section or a full‑time
licensure student on whose behalf a grant has been paid in accordance with
subsection (a1) of this section is not enrolled and carrying a minimum academic
load as of the tenth classroom day following the beginning of the school term
for which the grant was paid, the institution shall refund the full amount of
the grant to the State Education Assistance Authority. If a part‑time
student on whose behalf a prorated grant has been paid in accordance with
subsection (a) of this section or a part‑time licensure student on whose
behalf a prorated grant has been paid in accordance with subsection (a1) of this
section is not enrolled and carrying a minimum academic load of six nine
credit hours per semester in the undergraduate class as of the tenth
classroom day following the beginning of the school term for which the grant
was paid, the institution shall refund the full amount of the grant to the
State Education Assistance Authority. If the matriculated status of a full‑time
student or a full‑time licensure student changes to a matriculated status
of part‑time student or part‑time licensure student by the tenth
classroom day following the beginning of the school term for which the grant
was paid, the institution shall refund only the difference between the amount
of the full‑time grant awarded and the amount of the part‑time
grant that is awarded pursuant to this section. Each approved institution shall
be subject to examination by the State Auditor for the purpose of determining
whether the institution has properly certified eligibility and enrollment of
students and licensure students and credited grants paid on behalf of them.
(d) Shortfall. – In the event there are not sufficient funds to provide each eligible student or licensure student with a full or prorated grant as provided by subsection (a) of this section or a full or a prorated grant as provided by subsection (a1) of this section:
(1) The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a), (a1), and (b) of this section; and
(2) Each eligible student and licensure student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
(e) Reversions. – Any remaining funds shall revert to the General Fund."
SECTION 9.8.(b) This section applies to academic semesters beginning on or after July 1, 2009.
GRADUATE NURSE SCHOLARSHIP PROGRAM FOR FACULTY PRODUCTION/Revert Part OF FUND BALANCE
SECTION 9.9. Effective July 1, 2009, the sum of one million dollars ($1,000,000) shall transfer from the fund balance of the Graduate Nurse Scholarship Program for Faculty Production (also known as Nurse Educators of Tomorrow Scholarship Loan) to the General Fund.
INCREASE UNC UNDERGRADUATE TUITION SURCHARGE
SECTION 9.10.(a) Subsection (b) of Section 89 of Chapter 321 of the 1993 Session Laws as amended by Section 17.10 of Chapter 769 of the 1993 Session Laws reads as rewritten:
"(b) The Board of Governors of The University of
North Carolina shall ensure that procedures are established that are necessary
to impose a twenty‑five percent (25%) fifty percent (50%) tuition
surcharge on students who take more than 140 degree credit hours to complete a
baccalaureate degree in a four‑year program or more than one hundred ten
percent (110%) of the credit hours necessary to complete a baccalaureate degree
in any program officially designated by the Board of Governors as a five‑year
program. The calculation of these credit hours taken at a constituent
institution or accepted for transfer shall exclude hours earned through the
College Board's Advanced Placement or CLEP examinations, through institutional
advanced placement or course validation, or through summer term or extension
programs. No surcharge shall be imposed on any student who exceeds the degree
credit hour limits within the equivalent of four academic years of regular term
enrollment, or within five academic years of regular term enrollment in a
degree program officially designated by the Board of Governors as a five‑year
program. The Board shall report to the Joint Legislative Education Oversight
Committee by April 1, 1994, on its recommendations for implementing this
surcharge."
SECTION 9.10.(b) The Board of Governors shall report to the Joint Legislative Education Oversight Committee by September 1, 2009, regarding the implementation of the increased surcharge.
SECTION 9.10.(c) This section applies to all students who will be sophomores or freshman in the 2009‑2010 fall academic semester and to all students who are new undergraduates on or after the effective date of this act.
SECTION 9.11. G.S. 116‑30.7 reads as rewritten:
"§ 116‑30.7. Biennial projection of enrollment growth for The University of North Carolina.
By September 1October 15 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 first 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)."
UNC Board of Governors Study and Develop Plan to Transfer UNC Center for Public Television To UNC School of the Arts
SECTION 9.12. The Board of Governors of The University of North Carolina shall study the feasibility of transferring the University of North Carolina Center for Public Television to the University of North Carolina School of the Arts and shall develop a plan to implement such a transfer. The Board of Governors shall report its findings and recommendations along with the plan by March 1, 2010, to the Joint Education Legislative Oversight Committee and to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Education.
North Carolina Center for Advancement of Teaching (NCCAT)/Property settlement if NCCAT transferred from UNC system or ceases to exist
SECTION 9.13.(a) If the North Carolina Center for the Advancement of Teaching (NCCAT) is transferred from The University of North Carolina to another State government agency or department, then all of the following shall occur:
(1) The University of North Carolina and Western Carolina University shall both be released and relieved: (i) of any and all responsibilities, duties, and powers related to the administration or management functions of NCCAT, and (ii) of any and all responsibilities and duties arising from any fiduciary relationship existing between Western Carolina University and NCCAT.
(2) Neither The University of North Carolina nor Western Carolina University shall be the fiscal agent for NCCAT.
(3) Western Carolina University shall be granted a permanent easement 40 feet in width over and upon the NCCAT campus for the purpose of providing Western Carolina University and its assignees, agents, joint venturers, lessees, partners, and invitees access to that portion of Western Carolina University's campus currently undeveloped and adjacent to NCCAT. Western Carolina University shall use existing roads across the NCCAT campus, to the extent possible. If any road is required, it shall be built at Western Carolina University's expense.
SECTION 9.13.(b) If the North Carolina Center for Advancement of Teaching ceases to exist as a State agency or entity, or if NCCAT closes its offices and operation in Jackson County, North Carolina, then the following real property in Jackson County shall be transferred to Western Carolina University and become part of Western Carolina University's campus to be used for any purpose, at Western Carolina University's discretion, appropriate to its mission: all land in Jackson County that (i) was used or under the control of NCCAT at the time it ceased to exist or closed its operations and (ii) was transferred to NCCAT from The University of North Carolina, including all improvements located thereon.
Coastal Demonstration wind turbines
SECTION 9.14.(a) The University of North Carolina shall continue the coastal sounds wind energy study set forth in Section 9.12 of S.L. 2008‑107 and, pursuant to Section 9.12, shall apply for federal grants to continue the study. Funds appropriated by United States Public Law 111‑005, the American Recovery and Reinvestment Act of 2009 (the Federal Act), for renewable energy and allocated to the State of North Carolina shall be used for the development, design, and construction of at least three demonstration wind turbines and necessary support facilities in the sounds or off the coast of North Carolina, and the Director of the Budget shall ensure any available federal funds are secured. The actual placement of the wind turbines and necessary support facilities shall be determined by the coastal sounds wind energy study. The Director of the Budget shall ensure that any available federal funding is secured by the State to construct the wind turbines. The University, in collaboration with the Director of the Budget, shall enter into a contract with a third party by October 1, 2009, to construct, establish, and operate the demonstration turbines and necessary support facilities on or before April 1, 2010.
SECTION 9.14.(b) With respect to the demonstration wind turbines and necessary support facilities authorized by subsection (a) of this section, the facilities authorized under this act shall be constructed in accordance with the provisions of general law applicable to the construction of State facilities. The Department of Environment and Natural Resources is directed to expedite permitting of the project to the extent allowed by law.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
SECTION 10.1.(a) The maximum gross annual income for initial eligibility, adjusted biennially, for subsidized child care services shall be seventy‑five percent (75%) of the State median income, adjusted for family size.
SECTION 10.1.(b) Fees for families who are required to share in the cost of care shall be established based on a percent of gross family income and adjusted for family size. Fees shall be determined as follows:
FAMILY SIZE PERCENT OF GROSS FAMILY INCOME
1‑3 10%
4‑5 9%
6 or more 8%.
SECTION 10.1.(c) Payments for the purchase of child care services for low‑income children shall be in accordance with the following requirements:
(1) Religious‑sponsored child care facilities operating pursuant to G.S. 110‑106 and licensed child care centers and homes that meet the minimum licensing standards that are participating in the subsidized child care program shall be paid the one‑star county market rate or the rate they charge privately paying parents, whichever is lower.
(2) Licensed child care centers and homes with two or more stars shall receive the market rate for that rated license level for that age group or the rate they charge privately paying parents, whichever is lower.
(3) Nonlicensed homes shall receive fifty percent (50%) of the county market rate or the rate they charge privately paying parents, whichever is lower.
(4) Maximum payment rates shall also be calculated periodically by the Division of Child Development for transportation to and from child care provided by the child care provider, individual transporter, or transportation agency, and for fees charged by providers to parents. These payment rates shall be based upon information collected by market rate surveys.
SECTION 10.1.(d) Provisions of payment rates for child care providers in counties that do not have at least 50 children in each age group for center‑based and home‑based care are as follows:
(1) Except as applicable in subdivision (2) of this subsection, payment rates shall be set at the statewide or regional market rate for licensed child care centers and homes.
(2) If it can be demonstrated that the application of the statewide or regional market rate to a county with fewer than 50 children in each age group is lower than the county market rate and would inhibit the ability of the county to purchase child care for low‑income children, then the county market rate may be applied.
SECTION 10.1.(e) A market rate shall be calculated for child care centers and homes at each rated license level for each county and for each age group or age category of enrollees and shall be representative of fees charged to parents for each age group of enrollees within the county. The Division of Child Development shall also calculate a statewide rate and regional market rates for each rated license level for each age category.
SECTION 10.1.(f) Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes and facilities operated pursuant to G.S. 110‑106 may participate in the program that provides for the purchase of care in child care facilities for minor children of needy families. No separate licensing requirements shall be used to select facilities to participate. In addition, child care facilities shall be required to meet any additional applicable requirements of federal law or regulations. Child care arrangements exempt from State regulation pursuant to Article 7 of Chapter 110 of the General Statutes shall meet the requirements established by other State law and by the Social Services Commission.
County departments of social services or other local contracting agencies shall not use a provider's failure to comply with requirements in addition to those specified in this subsection as a condition for reducing the provider's subsidized child care rate.
SECTION 10.1.(g) Payment for subsidized child care services provided with Work First Block Grant funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 10.1.(h) Noncitizen families who reside in this State legally shall be eligible for child care subsidies if all other conditions of eligibility are met. If all other conditions of eligibility are met, noncitizen families who reside in this State illegally shall be eligible for child care subsidies only if at least one of the following conditions is met:
(1) The child for whom a child care subsidy is sought is receiving child protective services or foster care services.
(2) The child for whom a child care subsidy is sought is developmentally delayed or at risk of being developmentally delayed.
(3) The child for whom a child care subsidy is sought is a citizen of the United States.
SECTION 10.2.(a) The Department of Health and Human Services shall allocate child care subsidy voucher funds to pay the costs of necessary child care for minor children of needy families. The mandatory thirty percent (30%) Smart Start subsidy allocation under G.S. 143B‑168.15(g) shall constitute the base amount for each county's child care subsidy allocation. The Department of Health and Human Services shall use the following method when allocating federal and State child care funds, not including the aggregate mandatory thirty percent (30%) Smart Start subsidy allocation:
(1) Funds shall be allocated to a county based upon the projected cost of serving children under age 11 in families with all parents working who earn less than seventy‑five percent (75%) of the State median income.
(2) No county's allocation shall be less than ninety percent (90%) of its State fiscal year 2001‑2002 initial child care subsidy allocation.
SECTION 10.2.(b) The Department of Health and Human Services may reallocate unused child care subsidy voucher funds in order to meet the child care needs of low‑income families. Any reallocation of funds shall be based upon the expenditures of all child care subsidy voucher funding, including Smart Start funds, within a county.
SECTION 10.2.(c) Notwithstanding subsection (a) of this section, the Department of Health and Human Services shall allocate up to twenty million dollars ($20,000,000) in federal block grant funds and State funds appropriated for fiscal years 2009‑2010 and 2010‑2011 for child care services. These funds shall be allocated to prevent termination of child care services. Funds appropriated for specific purposes, including market rate adjustments, may also be allocated by the Department separately from the allocation formula described in subsection (a) of this section.
Child Care Funds Matching Requirement
SECTION 10.3. 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 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).
Facilitate and Expedite Use of Child Care Subsidy Funds
SECTION 10.4. The Division of Child Development of the Department of Health and Human Services shall adopt temporary policies that facilitate and expedite the prudent expenditure of child care subsidy funds. These policies will address the following:
(1) Permitting the local purchasing agencies to issue time‑limited vouchers to assist counties in managing onetime, nonrecurring subsidy funding.
(2) Extending the current 30/60 day job search policy to six months when a recipient experiences a loss of employment.
(3) Providing an upfront job search period of six months for former recipients who have lost employment since October 1, 2008.
(4) Providing a job search period of six months for recipients that complete school and are entering the job market.
(5) Notwithstanding any other provision of law, extending the 24‑month education time limit for an additional 12 months for a child care recipient who has lost a job since October 1, 2008, or otherwise needs additional training to enhance his or her marketable skills for job placement due to the economic downturn and who has depleted his or her 24‑month allowable education time.
(6) Lowering the number of hours a parent must be working in order to be eligible for subsidy to assist parents who are continuing to work but at reduced hours.
SECTION 10.5. Notwithstanding any law to the contrary, funds budgeted for the Child Care Revolving Loan Fund may be transferred to and invested by the financial institution contracted to operate the Fund. The principal and any income to the Fund may be used to make loans, reduce loan interest to borrowers, serve as collateral for borrowers, pay the contractor's cost of operating the Fund, or pay the Department's cost of administering the program.
Child Care Market Rate Adjustments
SECTION 10.6. Not later than October 1, 2009, the Department shall implement an adjustment to child care market rates, by region, based upon the 2009 Child Care Market Rate Study.
Early Childhood Education and Development Initiatives Enhancements
SECTION 10.7.(a) Administrative costs shall be equivalent to, on an average statewide basis for all local partnerships, not more than eight percent (8%) of the total statewide allocation to all local partnerships. For purposes of this subsection, administrative costs shall include costs associated with partnership oversight, business and financial management, general accounting, human resources, budgeting, purchasing, contracting, and information systems management.
SECTION 10.7.(b) The North Carolina Partnership for Children, Inc., and all local partnerships shall use competitive bidding practices in contracting for goods and services on contract amounts as follows:
(1) For amounts of five thousand dollars ($5,000) or less, the procedures specified by a written policy to be developed by the Board of Directors of the North Carolina Partnership for Children, Inc.
(2) For amounts greater than five thousand dollars ($5,000), but less than fifteen thousand dollars ($15,000), three written quotes.
(3) For amounts of fifteen thousand dollars ($15,000) or more, but less than forty thousand dollars ($40,000), a request for proposal process.
(4) For amounts of forty thousand dollars ($40,000) or more, a request for proposal process and advertising in a major newspaper.
SECTION 10.7.(c) The North Carolina Partnership for Children, Inc., and all local partnerships shall, in the aggregate, be required to match no less than fifty percent (50%) of the total amount budgeted for the program in each fiscal year of the biennium as follows: contributions of cash equal to at least fifteen percent (15%) and in‑kind donated resources equal to no more than five percent (5%) for a total match requirement of twenty percent (20%) for each fiscal year. The North Carolina Partnership for Children, Inc., may carry forward any amount in excess of the required match for a fiscal year in order to meet the match requirement of the succeeding fiscal year. Only in‑kind contributions that are quantifiable shall be applied to the in‑kind match requirement. Volunteer services may be treated as an in‑kind contribution for the purpose of the match requirement of this subsection. Volunteer services that qualify as professional services shall be valued at the fair market value of those services. All other volunteer service hours shall be valued at the statewide average wage rate as calculated from data compiled by the Employment Security Commission in the Employment and Wages in North Carolina Annual Report for the most recent period for which data are available. Expenses, including both those paid by cash and in‑kind contributions, incurred by other participating non‑State entities contracting with the North Carolina Partnership for Children, Inc., or the local partnerships, also may be considered resources available to meet the required private match. In order to qualify to meet the required private match, the expenses shall:
(1) Be verifiable from the contractor's records.
(2) If in‑kind, other than volunteer services, be quantifiable in accordance with generally accepted accounting principles for nonprofit organizations.
(3) Not include expenses funded by State funds.
(4) Be supplemental to and not supplant preexisting resources for related program activities.
(5) Be incurred as a direct result of the Early Childhood Initiatives Program and be necessary and reasonable for the proper and efficient accomplishment of the Program's objectives.
(6) Be otherwise allowable under federal or State law.
(7) Be required and described in the contractual agreements approved by the North Carolina Partnership for Children, Inc., or the local partnership.
(8) Be reported to the North Carolina Partnership for Children, Inc., or the local partnership by the contractor in the same manner as reimbursable expenses.
Failure to obtain a twenty percent (20%) match by June 30 of each fiscal year shall result in a dollar‑for‑dollar reduction in the appropriation for the Program for a subsequent fiscal year. The North Carolina Partnership for Children, Inc., shall be responsible for compiling information on the private cash and in‑kind contributions into a report that is submitted to the Joint Legislative Commission on Governmental Operations in a format that allows verification by the Department of Revenue. The same match requirements shall apply to any expansion funds appropriated by the General Assembly.
SECTION 10.7.(d) The Department of Health and Human Services shall continue to implement the performance‑based evaluation system.
SECTION 10.7.(e) The Department of Health and Human Services and the North Carolina Partnership for Children, Inc., shall ensure that the allocation of funds for Early Childhood Education and Development Initiatives for State fiscal years 2009‑2010 and 2010‑2011 shall be administered and distributed in the following manner:
(1) Capital expenditures are prohibited for fiscal years 2009‑2010 and 2010‑2011. For the purposes of this section, "capital expenditures" means expenditures for capital improvements as defined in G.S. 143C‑1‑1(d)(5).
(2) Expenditures of State funds for advertising and promotional activities are prohibited for fiscal years 2009‑2010 and 2010‑2011.
SECTION 10.7.(f) A county may use the county's allocation of State and federal child care funds to subsidize child care according to the county's Early Childhood Education and Development Initiatives Plan as approved by the North Carolina Partnership for Children, Inc. The use of federal funds shall be consistent with the appropriate federal regulations. Child care providers shall, at a minimum, comply with the applicable requirements for State licensure pursuant to Article 7 of Chapter 110 of the General Statutes.
SECTION 10.7.(g) For fiscal years 2009‑2010 and 2010‑2011, the local partnerships shall spend an amount for child care subsidies that provides at least fifty‑two million dollars ($52,000,000) for the TANF maintenance of effort requirement and the Child Care Development Fund and Block Grant match requirement. The North Carolina Partnership for Children, Inc., shall not spend less on child care subsidies than the spending level for fiscal year 2008‑2009.
Continue More At Four Program for 2009‑2010 Fiscal Year
SECTION 10.8.(a) The Department of Public Instruction and Division of Child Development of the Department of Health and Human Services 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 through the 2009‑2010 fiscal year. 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.
SECTION 10.8.(b) The Office of School Readiness of the Department of Instruction shall reduce the reimbursement rates per slot statewide. The program funding is reduced by forty million dollars ($40,000,000) recurring beginning for the 2009‑2010 fiscal year. The Office of School Readiness, in conjunction with Division of Child Development, shall plan to minimize the number of slots eliminated by reducing the amount of funds paid per slot statewide.
SECTION 10.8.(c) A child whose parent is deployed in the military shall be eligible for participation in the More at Four program.
SECTION 10.9.(a) The More at Four program is transferred to the Department of Health and Human Services, effective July 1, 2009.
SECTION 10.9.(b) The star rating system currently in place for licensure shall have an additional Plus (+) designation identifying those programs offering a high quality four‑year‑old classroom. The Plus program shall be administered within the Regulatory Services Section of the Division of Child Development as a high quality four‑year‑old classroom operated within private child care centers and public schools and will be designated as a Plus program.
SECTION 10.9.(c) The Plus program shall be no less stringent than current standards of the More at Four program in place for the 2008‑2009 fiscal year and shall ensure lower ratios of teachers to students and require higher teacher qualifications. The Plus program shall offer a curriculum approved by the Division of Child Development.
SECTION 10.9.(d) Eligibility requirements for the Plus program shall be in accordance with current child care subsidy eligibility requirements as established by the General Assembly. The new reimbursement rate plan shall be in accordance with the child care subsidy program implemented for the 2010‑2011 fiscal year.
SECTION 10.9.(e) Public school systems shall be allowed reimbursement through the Division of Child Development for students qualifying for subsidy for its Plus programs. Beginning in school year 2010‑2011, the screening process for children applying for subsidy for a Plus program shall occur through the regular subsidy application process in collaboration with local partnerships of the North Carolina Partnership for Children, Inc., county departments of social services, and local school administrative units. Counties are encouraged to develop a single application process for child care subsidy accepted in many locations throughout the county.
SECTION 10.9.(f) Parent payments for the Plus program shall be in accordance with child care subsidy rules adopted by the Division of Child Development for the 2010‑2011 fiscal year.
SECTION 10.9.(g) On or before December 1, 2009, the Division of Child Development shall report on the star‑rated system and the incorporation of the Plus program. The report will include an analysis of the star‑rated system and identify the standards for each and the differences between the various levels.
Administrative Allowance for County Departments of Social Services
SECTION 10.10. The Division of Child Development of the Department of Health and Human Services shall increase the allowance that county departments of social services may use for administrative costs from four percent (4%) to five percent (5%) of the county's total child care subsidy funds allocated in the Child Care Development Fund Block Grant plan. The increase shall be effective for the 2009‑2010 fiscal year.
Increase Child Care Licensing Fees for Child Care Facilities
SECTION 10.11. G.S. 110‑90(1a) reads as rewritten:
"§ 110‑90. Powers and duties of Secretary of Health and Human Services.
The Secretary shall have the following powers and duties under the policies and rules of the Commission:
…
(1a) To establish a fee for the licensing of child care centers.facilities.
The fee does not apply to a religious‑sponsored child care center facility
operated pursuant to a letter of compliance. The amount of the fee may not
exceed the amount listed in this subdivision.
Capacity of CenterFacility Maximum
Fee
12 or fewer children $
35.00$52.00
13‑50 children $125.00$187.00
51‑100 children $250.00$375.00
101 or more children $400.00$600.00
…."
SECTION 10.12.(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 10.12.(b) Onetime funds appropriated for the Dorothea Dix Hospital overflow unit shall be used to support the temporary operation of the hospital unit on the Dorothea Dix campus.
SECTION 10.12.(c) The Department shall evaluate the need to continue the temporary operation of the hospital unit for one additional year and provide a recommendation to the Governor no later than February 15, 2010. Notwithstanding any other provision of law to the contrary, the Office of State Budget and Management shall establish the positions for the hospital unit on the Dorothea Dix campus as time‑limited positions.
SECTION 10.12.(d) 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 twenty million one hundred twenty‑one thousand six hundred forty‑four dollars ($20,121,644) for the 2009‑2010 fiscal year and the sum of twenty million one hundred twenty‑one thousand six hundred forty‑four dollars ($20,121,644) for the 2010‑2011 fiscal year shall be allocated for the purchase of local inpatient psychiatric beds or bed days. These beds or bed days 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 or bed days. Local inpatient psychiatric beds or bed days 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 30 working days of receipt of payment from the Division. If the Department determines (i) that an LME is not effectively managing the beds or bed days for which it has responsibility, as evidenced by beds or bed days 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 bed days, 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 or bed days. Funds appropriated in this section for the purchase of local inpatient psychiatric beds or bed days shall be used to purchase additional beds or bed days 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 or bed days being purchased through Hospital Utilization Pilot funds appropriated in S.L. 2007‑323. Not later than March 1, 2010, the Department shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division on a uniform system for beds or bed days purchased (i) with local funds, (ii) from existing State appropriations, (iii) under the Hospital Utilization Pilot, and (iv) purchased using funds appropriated under this subsection.
SECTION 10.12.(e) The Secretary of the Department of Health and Human Services shall not take any action prior to January 1, 2010, that would result in the merger or consolidation of LMEs operating on January 1, 2008, or that would establish consortia or regional arrangements for the same purpose, except that LMEs that do not meet the catchment area requirements of G.S. 122C‑115 as of January 1, 2010, may initiate, continue, or implement the LMEs' merger or consolidation plans to overcome noncompliance with G.S. 122C‑115. This subsection does not prohibit LME's from voluntarily merging if they are contiguous or consolidating administrative functions.
SECTION 10.12.(f) 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 over the State according to need as determined by the Department.
REENACT 2007 SPECIAL PROVISION ON COLLABORation ON SCHOOL‑BASED CHILD AND FAMILY TEAM INITIATIVE
SECTION 10.13. Section 10.9 of S.L. 2007‑323 is reenacted for the 2009‑2011 fiscal biennium.
CLOSURE OF WRIGHT AND WHITAKER SCHOOLS
SECTION 10.14. The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall close the Wright School and the Whitaker School, effective December 31, 2009.
The Division shall prepare a transition plan for each student currently attending these schools, which shall include assisting in the location of community services for the student, working with the public school system in preparing or updating the student's individualized education plan, and working with the local management entity (LME) to ensure that the needs of the student are met. The LME shall conduct a six‑month follow‑up on each of these students.
The Division shall report on student transitions, student participation in any community or residential programs, and student progress six months after the school closures. The Division shall submit the report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division not later than August 30, 2010.
The Department shall ensure that all possible measures are taken to provide a State job for employees of these schools.
SUBSTANCE ABUSE TASK FORCE RECOMMENDATIONS/availability of substance abuse treatment
SECTION 10.15.(a) 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 one million dollars ($1,000,000) shall be used to implement one or more priority recommendations of the North Carolina Institute of Medicine (NCIOM) Substance Abuse Task Force, which include:
(1) Development of a comprehensive substance abuse prevention plan for use at the State and local levels.
(2) Providing funding for the establishment of six pilot projects to implement county or multicounty comprehensive prevention plans.
(3) Supporting efforts to reduce high‑risk drinking on college campuses.
(4) Development of a pilot program to provide chronic disease management services to substance abuse clients and former clients. The purpose of the pilot is to decrease the number of short‑term hospital admissions and to provide discharge planning and follow‑up to reduce substance abuse client recidivism.
(5) Educating and encouraging health care professionals to use the screening, brief intervention, and referral to treatment (SBIRT) model promoted by the federal government.
SECTION 10.15.(b) Consistent with G.S. 122C‑2, the General Assembly strongly encourages Local Management Entities (LMEs) to use a portion of the funds appropriated for substance abuse treatment services to support prevention and education activities.
SECTION 10.15.(c) An LME may use up to one percent (1%) of funds allocated to it for substance abuse treatment services to provide nominal incentives for consumers who achieve specified treatment benchmarks, in accordance with the federal substance abuse and mental health services administration best practice model entitled Contingency Management.
SECTION 10.15.(d) In providing treatment and services for adult offenders and increasing the number of Treatment Accountability for Safer Communities (TASC) case managers, local management entities shall consult with TASC to improve offender access to substance abuse treatment and match evidence‑based interventions to individual needs at each stage of substance abuse treatment. Special emphasis should be placed on intermediate punishment offenders, community punishment offenders at risk for revocation, and Department of Correction (DOC) releasees who have completed substance abuse treatment while in custody.
In addition to the funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, to provide substance abuse services for adult offenders and to increase the number of TASC case managers, the Department shall allocate up to three hundred thousand dollars ($300,000) to TASC. These funds shall be allocated to TASC before funds are allocated to LMEs for mental health services, substance abuse services, and crisis services.
SECTION 10.15.(e) In providing drug treatment court services, LMEs shall consult with the local drug treatment court team and shall select a treatment provider that meets all provider qualification requirements and the drug treatment court's needs. A single treatment provider may be chosen for non‑Medicaid‑eligible participants only. A single provider may be chosen who can work with all of the non‑Medicaid‑eligible drug treatment court participants in a single group. During the 52‑week drug treatment court program, participants shall receive an array of treatment and aftercare services that meets the participant's level of need, including step‑down services that support continued recovery.
SECTION 10.15.(f) Not later than October 1, 2009, the Department of Health and Human Services shall complete the development of a Uniform Screening Tool (UST) to determine the mental health of any individual admitted to any long‑term care facility. The Department shall report on the status of UST development on or before January 1, 2010, to the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services.
SECTION 10.16. The Secretary of the Department of Health and Human Services shall implement a Total Quality Management Program in hospitals and other State facilities for the purpose of providing a high level of customer service by well‑trained staff throughout the organization. The focus of this management approach shall be on meeting customer needs by providing high‑quality services.
The Department shall involve staff at all levels of the organization by soliciting suggestions and input into decision making by managers. The Department shall create staff committees composed of a representative distribution of rank and file employees, to evaluate policy changes and identify training opportunities and other necessary improvements.
The Department shall submit a report on the status of the Total Quality Management Program, including any activities associated with its implementation within State facilities, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee 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 December 1, 2009.
BUDGET REDUCTIONS FOR division of MH/DD/SA
SECTION 10.17. The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall reduce its budget in the following areas for the 2009‑2010 and 2010‑2011 fiscal years:
Facility Fund Code FY 2009‑2010 FY 2010‑2011
Broughton Hospital 4541 $ (34,220)
Broughton Hospital 4541 $ (136,550)
Broughton Hospital 4549 $ (7,000)
Longleaf Neuro‑Medical 4541 $ (64,000)
Longleaf Neuro‑Medical 4541 $ (24,000)
Longleaf Neuro‑Medical 4541 $ (72,500)
Black Mountain Neuro‑Medical 4541 $ (25,796)
Caswell Developmental Center 4541 $ (210,632)
Caswell Developmental Center 4541 $ (320,500)
Caswell Developmental Center 4549 $ (16,500)
Murdoch Center 3210 $ (14,447) $ (14,447)
Murdoch Center 4541 $ (200,750)
Murdoch Center 4541 $ (93,200)
O‑Berry Neuro‑Medical 4521 $ (60,702) $ (21,102)
O‑Berry Neuro‑Medical 4541 $ (22,103)
Iverson Riddle Center 3110 $ (12,153) $ (12,153)
Walter Jones ADATC 3110 $ (5,852) $ (5,852)
Walter Jones ADATC 4541 $ (24,500)
Walter Jones ADATC 4549 $ (8,800)
TOTAL REDUCTIONS $ (705,659) $ (709,100)
New purchases of vehicles for the regional maintenance facilities are subject to approval by the Secretary.
Study The Availability Of Community MH/DD/SA Services For Military Families
SECTION 10.18. Funds appropriated in this act to the Department of Health and Human Services for North Carolina Institute of Medicine (NCIOM) shall be used to study the availability of Medicaid and State‑funded mental health, developmental disability, and substance abuse services to active duty, reserve, and veteran members of the military and National Guard. The study should discuss the current availability of services, the extent of use, and any gaps in services. The NCIOM shall submit a report of its findings and any recommended legislation to the Governor's Office, the Joint Legislative Commission on Governmental Operations, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services by February 15, 2010.
Funds for Local Management Entity (LME) Service Gaps
SECTION 10.19. Funds appropriated in this act for mental health services and supported employment shall be allocated to local management entities such that each local management entity receives a percentage of the total allocation that is equal to that local management entity's percentage of the State's total population that is below the federal poverty level. Funds appropriated to the Department of Health and Human Services for the 2009‑2010 and 2010‑2011 fiscal years for mental health services, substance abuse services, and crisis services and allocated based on the poverty level shall continue to be allocated by the Department to local management entities such that each local management entity receives a percentage of the total allocation that is equal to that local management entity's percentage of the State's total population that is below the federal poverty level.
Transition Of Utilization Management Of Community‑Based Services To Local Management Entities
SECTION 10.20. Consistent with the findings of the Mercer evaluation of Local Management Entities (LMEs), the Department of Health and Human Services shall collaborate with LMEs to enhance their administrative capabilities to assume utilization management responsibilities for the provision of community‑based mental health, developmental disabilities, and substance abuse services. The Department may, with approval of the Office of State Budget and Management, use funds available to implement this section.
MENTAL HEALTH TRUST FUND ALLOCATIONS
SECTION 10.21. Notwithstanding any other provision of law to the contrary, funds allocated from the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs (Fund) in the 2007 fiscal biennium shall not revert to the Fund nor otherwise be withheld but shall be allocated to those programs for which the funds were originally obligated.
SECTION 10.22. G.S. 130A‑93.1 reads as rewritten:
"§ 130A‑93.1. Fees for vital records copies or search; automation fund.
(a) The State Registrar shall collect, process, and utilize fees for services as follows:
(1) A fee not to exceed fifteen dollars ($15.00) twenty
dollars ($20.00) shall be charged for issuing any a first
copy of a vital record or for conducting a routine search of the files for the
record when no copy is made. A fee of fifteen dollars ($15.00) shall be
charged for each additional certificate copy requested from the same search.
When certificates are issued or searches conducted for statewide issuance
by local agencies using databases maintained by the State Registrar, the local
agency shall charge this fee these fees and shall forward five
dollars ($5.00) of this fee retain ten dollars ($10.00) of these fees to
cover local administrative costs and forward the remaining fees to the
State Registrar for the purposes established in subsection (b) of this
section.
(2) A fee not to exceed fifteen dollars ($15.00) for in‑State requests and not to exceed twenty dollars ($20.00) for out‑of‑state requests shall be charged in addition to the fee charged under subdivision (1) of this subsection and to all shipping and commercial charges when expedited service is specifically requested.
(2a) The fee for a copy of a computer or microform database shall not exceed the cost to the agency of making and providing the copy.
(3) Except as provided in subsection (b) of this section, fees collected under this subsection shall be used by the Department for public health purposes.
(b) The Vital Records Automation Account is established as a nonreverting account within the Department. Five dollars ($5.00) of each fee collected pursuant to subdivision (a)(1) shall be credited to this Account. The Department shall use the revenue in the Account to fully automate and maintain the vital records system. When funds sufficient to fully automate and maintain the system have accumulated in the Account, fees shall no longer be credited to the Account but shall be used as specified in subdivision (a)(3) of this section."
Changes To Community‑Focused Eliminating Health Disparities Initiative
SECTION 10.23.(a) Funds appropriated in this act from the General Fund to the Department of Health and Human Services for the Community‑Focused Eliminating Health Disparities Initiative (CFEHDI) shall be used 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.
SECTION 10.23.(b) Funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, for the CFEHDI 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.
SECTION 10.23.(c) The Department of Health and Human Services shall report on the following with respect to funds appropriated to the CFEHDI for the 2009‑2010 fiscal year. The report shall address the following:
(1) Which community programs and local health departments received CFEHDI grants.
(2) The amount of funding each program or local health department received.
(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.
(6) How the activities implemented by the programs or local health departments fulfilled the goal of reducing health disparities among minority populations.
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 March 15, 2010, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 10.24.(a) All funds appropriated for the school nurse initiative shall be used to supplement and not supplant other State, local, or federal funds appropriated or allocated for this purpose. Communities shall maintain their current level of effort and funding for school nurses. These funds shall not be used for funding nurses for State agencies. All funds shall be used for direct services.
SECTION 10.24.(b) All school nurses funded with State funds shall participate, as needed, in child and family teams.
SECTION 10.24.(c) Of the funds appropriated to the Department of Health and Human Services, Division of Public Health, for the 2009‑2010 and 2010‑2011 fiscal years, the sum of one million dollars ($1,000,000) in each fiscal year shall be used to hire 20 additional school health nurses bringing the total number of school nurses supported by DHHS to 232. The distribution of additional school nurses shall be made according to the criteria established by the Department in 2006.
SECTION 10.25. For the 2009‑2010 and 2010‑2011 fiscal years, the Department may, within existing Aids Drug Assistance Program (ADAP) 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.
PUBLIC HEALTH IMPROVEMENT PLAN
SECTION 10.26.(a) The Department of Health and Human Services (DHHS) shall develop a five‑year Public Health Improvement Plan (Plan) by March 31, 2010. In developing the Plan the Secretary shall:
(1) Adopt a list of services and activities performed by local health departments that qualify as core public health functions of statewide significance.
(2) Adopt a list of performance measures with the intent of improving health status indicators applicable to core public health functions of statewide significance that local health departments (LHDs) must provide.
(3) Identify a set of health status indicators to be given priority by LHDs.
Under the Plan, all priorities and health status indicators must incorporate as an essential activity the disparity of diseases amongst populations and locales.
SECTION 10.26.(b) In order for measurable benefits to be realized through the implementation of the Plan, the Plan shall include the adoption of levels of performance necessary to promote:
(1) Uniformity across local health departments,
(2) Best evidence‑based services,
(3) National standards of performance,
(4) Innovations in public health practice, and
(5) Reduction of geographic and racial health disparities.
LHDs shall have the flexibility and opportunity to use the resources available to achieve the required performance measures in a manner that best suits the LHD.
SECTION 10.26.(c) The Plan will address the need to provide county health departments with financial incentives to encourage and increase local investment in public health functions. County governments shall not supplant existing local funding with State incentive resources. The Secretary may revise the list of activities and performance measures as appropriate, but before doing so, the Secretary shall provide a written explanation of the rationale for the addition, deletion, or revision.
SECTION 10.26.(d) In developing the Plan the Secretary shall establish and chair the Public Health Improvement Plan Task Force (Task Force), the members and expertise of which shall include:
(1) Local health departments,
(2) Department staff,
(3) Individuals and entities with expertise in the development of performance measures, accountability, and systems management,
(4) Experts in development of evidence‑based medical guidelines or public health practice guidelines, and
(5) Individuals and entities that will be affected by the performance measures.
SECTION 10.26.(e) The implementation schedule for the Plan shall be as follows:
(1) July 1, 2009, establish the Task Force to develop the Plan,
(2) March 31, 2010, submit the Plan to the 2010 Regular Session of the 2009 General Assembly,
(3) July 1, 2010, implement the Plan, and
(4) November 15, 2011, and annually thereafter, report on Plan implementation.
SECTION 10.26.(f) The Department will identify the programmatic activities and funding in the Division of Public Health associated with the core functions and activities in the Plan. Funds associated with these activities shall be subject to a flexible spending formula adopted by the Department, as follows:
(1) Beginning in SFY 2010‑2011, the flexible spending formula will begin to replace the current spending with a more effective method of funding public health activities at the local level and achieving the results expected.
(2) The Task Force shall identify a reliable and consistent source of State revenue to fund the flexible spending formula.
(3) If sufficient additional revenue is available to implement the Plan, a separate set‑aside of available funds would be created. This set‑aside would be available to contiguous LHDs that seek to address a specific women's health, child health, or adult health disease or chronic condition, and in doing so, choose to merge into a single Local Health District, thus saving administrative dollars to be focused on public health issues.
SECTION 10.26.(g) Funds appropriated to the Department for flexible spending shall be distributed to county health departments as follows:
(1) Each of the county health departments will receive a base amount to be determined by the DHHS.
(2) The balance of funds in the Flexible Spending Account is to be distributed to the counties on the basis of a formula that takes into consideration the following elements:
a. Population,
b. Per capita income,
c. Rates of:
1. Infant mortality,
2. Teenage pregnancy,
3. Tobacco use,
4. Cancer,
5. Heart disease,
6. Diabetes, and
7. Stroke.
d. Percent of minorities in the county,
e. Body Mass Index (BMI) of public school students, and
f. Other factors as the Secretary may find necessary to achieve the goals of the Plan.
(3) The use of the funds by the LHD would reflect the core public health functions. It will be incumbent upon the LHD to use the funds in a manner that assures its achievement of the performance measures adopted by the Secretary.
SECTION 10.26.(h) To ensure compliance with Department directives, the Task Force shall consider requiring each county health department to submit to the Secretary such data as the Secretary determines is necessary to allow the Secretary to assess whether the county health department has used the funds in a manner consistent with achieving the performance measures associated with this Plan.
SECTION 10.26.(i) Beginning November 15, 2011, and biannually thereafter, the Secretary shall report to the Governor and the General Assembly on:
(1) The distribution of funds to LHDs,
(2) The use of these funds by LHDs,
(3) The specific effect the funding from this Plan has had on:
a. LHDs' performance,
b. Health status indicators, and
c. Health disparities.
The Secretary's initial report will focus on implementation. Subsequent reports will evaluate trends in performance and expenditures.
SECTION 10.27.(a) The Department of Health and Human Services, in cooperation with the State Chief Information Officer and the North Carolina Office of Economic Recovery and Investment, shall coordinate health information technology (HIT) policies and programs within the State of North Carolina. The Department's goal in coordinating State HIT policy and programs shall be to avoid duplication of efforts and to ensure that each State agency, public entity, and private entity that undertakes health information technology activities associated with the American Recovery and Reinvestment Act of 2009 (ARRA) does so within the area of its greatest expertise and technical capability, and in a manner that supports coordinated State and national goals, which shall include at least all of the following:
(1) Ensuring that patient health information is secure and protected, in accordance with applicable law.
(2) Improving health care quality, reducing medical errors, reducing health disparities, and advancing the delivery of patient‑centered medical care.
(3) Providing appropriate information to guide medical decisions at the time and place of care.
(4) Ensuring meaningful public input into HIT infrastructure development.
(5) Improving the coordination of information among hospitals, laboratories, physician offices, and other entities through an effective infrastructure for the secure and authorized exchange of health care information.
(6) Improving public health services and facilitating early identification and rapid response to public health threats and emergencies, including bioterrorist events and infectious disease outbreaks.
(7) Facilitating health and clinical research.
(8) Promoting early detection, prevention, and management of chronic diseases.
SECTION 10.27.(b) The Department of Health and Human Services shall establish and direct a HIT management structure that is efficient and transparent and that is compatible with the Office of the National Health Coordinator for Information Technology (National Coordinator) governance mechanism. The HIT management structure shall be responsible for all of the following:
(1) Developing a State plan for implementing and ensuring compliance with national HIT standards, and for the most efficient, effective, and widespread adoption of HIT.
(2) Ensuring that (i) specific populations are effectively integrated into the State plan, including aging populations, populations requiring mental health services, and populations utilizing the public health system; and (ii) unserved and underserved populations receive priority consideration for HIT support.
(3) Identifying all HIT stakeholders and soliciting feedback and participation from each stakeholder in the development of the State plan.
(4) Ensuring that existing HIT capabilities are considered and incorporated into the State plan.
(5) Identifying and eliminating conflicting HIT efforts where necessary.
(6) Identifying available resources for the implementation, operation, and maintenance of health information technology, including, but not limited to, the ARRA, with emphasis on identifying resources and available opportunities for North Carolina institutions of higher learning.
(7) Ensuring that the appropriate State entities receive all the necessary information and support to successfully compete for funding included in the ARRA.
(8) Ensuring that potential State plan participants are aware of HIT policies and programs and the opportunity for improved health information technology.
(9) Monitoring HIT efforts and initiatives in other States and replicating successful efforts and initiatives in North Carolina.
(10) Monitoring the development of the National Coordinator's strategic plan and ensuring that all stakeholders are aware of and in compliance with its requirements.
(11) Monitoring the progress and recommendations of the HIT Policy and Standards Committees and ensuring that all stakeholders remain informed of the Committee's recommendations.
(12) Monitoring all studies and reports provided to the United States Congress and reporting to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on the impact of report recommendations on State efforts to implement coordinated HIT.
SECTION 10.27.(c) Beginning October 1, 2009, the Department of Health and Human Services shall provide quarterly written reports on the status of HIT efforts to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. The report shall include the following:
(1) Current status of federal HIT initiatives.
(2) Current status of State HIT efforts and initiatives among both public and private entities.
(3) A breakdown of current public and private funding sources and dollar amounts for State HIT initiatives.
(4) Department efforts to coordinate HIT initiatives within the State, and any obstacles or impediments to coordination.
(5) HIT research efforts being conducted within the State, and sources of funding for research efforts.
(6) Opportunities for stakeholders to participate in HIT funding and other efforts and initiatives during the next quarter.
(7) Issues associated with the implementation of HIT in North Carolina and recommended solutions to these issues.
SECTION 10.28. The Department of Health and Human Services shall apply for federal funds that are available through P.L. 111‑15, the American Recovery and Reinvestment Act, to develop and implement a mandatory statewide hospital‑acquired infections surveillance and reporting system, as recommended by the Joint Study Committee on Hospital Infection Control and Disclosure.
SECTION 10.29. The Department of Health and Human Services, Division of Public Health, shall use funds available to delegate to the Chronic Disease Prevention and Control Office the responsibility for ensuring attention to the prevention of disease and improvement in the quality of life for men over their entire lifespan. The Department shall develop strategies for achieving these goals, which shall include (i) developing a strategic plan to improve health care services, (ii) build public heath awareness, and (iii) develop initiatives within existing programs.
FACILITATION OF ENROLLMENT AND REENROLLMENT OF ELIGIBLE CHILDREN IN MEDICAID AND NC HEALTH CHOICE
SECTION 10.30. The Department of Health and Human Services shall increase its efforts to simplify the eligibility determination and recertification process to facilitate the enrollment and reenrollment of eligible Medicaid and NC Health Choice individuals. The Department shall also:
(1) Explore various opportunities through public awareness campaigns and enlisting community organizations to alert families of the opportunities of Medicaid and NC Health Choice to provide preventive health care to their children; and
(2) Pursue opportunities in the federal Children's Health Insurance Program Reauthorization Act (CHIPRA) to enhance outreach efforts and enrollment for children in Medicaid and NC Health Choice. These enhancements include funding for outreach and enrollment activities and implementation of the "Express Lane" option that uses agencies that determine eligibility for TANF, IV‑D SNAP, Head Start, and School Lunch programs to enroll children.
The Department shall also submit a Medicaid State Plan Amendment to take advantage of recent federal legislation (CHIPRA) allowing states to provide medical assistance to children and pregnant women who are lawfully residing in the United States.
NC HEALTH CHOICE TRANSITION
SECTION 10.31.(a) 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 10.31.(b) In consultation with the Department of Health and Human Services, Division of Medical Assistance, and other appropriate organizations, the Office of State Budget and Management (OSBM) shall conduct an independent analysis of the cost to determine appropriate staffing levels to manage and implement the transition of NC Health Choice from the State Health Plan to the Division to ensure that the transition of NC Health Choice occurs with minimal disruption and that the Division has adequate staffing and an organizational structure that fits with its existing structure. The Office of State Budget and Management shall report with staffing recommendations by March 1, 2010, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
NC HEALTH CHOICE/PROCEDURES FOR CHANGING MEDICAL POLICY
SECTION 10.32. Chapter 108A of the General Statutes is amended by adding a new section to read:
"§ 108A‑54.3. Procedures for changing medical policy.
The Department shall develop, amend, and adopt medical coverage policy in accordance with the following:
(1) During the development of new medical coverage policy or amendment to existing medical coverage policy applicable to the North Carolina Health Choice Program for Children, consult with and seek the advice of the Physician Advisory Group of the North Carolina Medical Society and other organizations the Secretary deems appropriate. The Secretary shall also consult with and seek the advice of officials of the professional societies or associations representing providers who are affected by the new medical coverage policy or amendments to existing medical coverage policy.
(2) At least 45 days prior to the adoption of new or amended medical coverage policy, the Department shall:
a. Publish the proposed new or amended medical coverage policy on the Department's Web site;
b. Notify all North Carolina Health Choice Program for Children providers of the proposed, new, or amended policy; and
c. Upon request, provide persons copies of the proposed medical coverage policy.
(3) During the 45‑day period immediately following publication of the proposed new or amended medical coverage policy, accept oral and written comments on the proposed new or amended policy.
(4) If, following the comment period, the proposed new or amended medical coverage policy is modified, then the Department shall, at least 15 days prior to its adoption:
a. Notify all North Carolina Health Choice Program for Children providers of the proposed policy;
b. Upon request, provide persons notice of amendments to the proposed policy; and
c. Accept additional oral or written comments during this 15‑day period."
NC HEALTH CHOICE MEDICAL POLICY
SECTION 10.33. Unless required for compliance with federal law, the Department shall not change medical policy affecting the amount, sufficiency, duration, and scope of NC Health Choice 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 one million dollars ($1,000,000) 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 one million dollars ($1,000,000) 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 one million dollars ($1,000,000) 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 a five‑year 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 one million dollars ($1,000,000).
SECTION 10.34. The Department of Health and Human Services may, in the NC Health Choice Program for the 2009‑2010 fiscal year, allow enrollment to grow by not more than 15,583 children.
SECTION 10.35.(a) The last paragraph of G.S. 108A‑70.21(b) reads as rewritten:
"§ 108A‑70.21. Program eligibility; benefits; enrollment fee and other cost‑sharing; coverage from private plans; purchase of extended coverage.
…
The Department shall provide services to children enrolled in the NC Health Choice Program through Community Care of North Carolina (CCNC) and shall pay Community Care of North Carolina providers for these services as allowed under Medicaid. The Department shall pay for these services only if sufficient information is available to the Department for utilization management of the services provided through CCNC."
SECTION 10.35.(b) The Department of Health and Human Services, Division of Medical Assistance, shall reduce or eliminate funding for per member/per month fees paid to Community Care of North Carolina (CCNC) if sufficient information is not available to the Department for utilization management of the provider services.
COMMUNITY CARE OF NORTH CAROLINA
SECTION 10.36.(a) Given the primary care case management foundation established by Community Care of North Carolina, the Department shall build upon that foundation to ensure quality care and cost control of CCNC by implementing the activities listed in subsection (b) of this section.
SECTION 10.36.(b) The Department shall contract with CCNC to manage the care of Medicaid recipients, through a per member, per month reimbursement. In the contract DHHS shall ensure that CCNC adheres to the following tenets, adapted from the National Committee of Quality Assurance's (NCQA) national measures for Medical Homes Models. The CCNC networks must demonstrate proficiency in:
(1) Written standards for patient access and patient communication;
(2) Use of data to show patients are meeting this standard;
(3) Adoption and implementation of evidenced‑based guidelines for priority diseases and conditions as identified by DHHS;
(4) Active support, monitoring, follow‑up, and documentation on patient self‑management;
(5) Tracking system to test and identify abnormal results, and follow‑up in a timely manner;
(6) Tracking referrals from and to other acute and long‑term care facilities and providers, so as to provide continuous management of patient care;
(7) Measurement of clinical and/or service performance by physician or across a practice; and
(8) Reporting performance according to baseline data and performance measure established by the DHHS Independent Advisory Group across CCNC networks, practices, and physicians to achieve the maximum savings possible through the improvement in the quality of care.
SECTION 10.36.(c) By July 1, 2009, or as soon a possible thereafter, the Department shall establish an Independent Advisory Group (IAG) for the purpose of developing targeted (i) baseline data, (ii) clinically acceptable performance measures that recognize nationally accredited treatment protocols, and (iii) patient, physician, and practice goals that improve quality of care, and realize necessary savings within Medicaid. The members of the Independent Advisory Group shall have demonstrated experience in actuarial analysis, health policy analysis, medical practice, hospital administration, or management of long‑term chronic conditions. The Independent Advisory Group and the Department shall ensure the following:
(1) The IAG shall begin work immediately so that baseline data, clinically acceptable performance measures, and practice goals to improve quality and cost savings can be implemented no later than January 1, 2010.
(2) The Department shall prepare a report to the General Assembly on the baseline data, clinically acceptable performance measures, and practice goals adopted by the IAG, and the improved quality and cost savings expected as a result of their implementation. This report will be due January 31, 2010.
(3) The IAG shall establish baseline information and performance measures for the diseases and conditions listed in this subdivision, the focus of which shall be on Medicaid recipients who are children, adults, and among those who are aged, blind, or disabled. The diseases and conditions shall include:
a. Asthma,
b. Diabetes,
c. Heart disease,
d. Chronic Obstructive Pulmonary Disease,
e. Mental illness,
f. Substance abuse,
g. Obesity, and
h. High risk maternity care
(4) The baseline information, performance measures, and practice and physician goals developed for the continuing care of Medicaid recipients, who are also eligible for Medicare shall include attention to this population's:
a. Increased primary care visit rate,
b. Hospital admission rate,
c. Hospital readmission rate,
d. Emergency department visit rate,
e. Mortality rate, and
f. Prescription drug management, including:
1. Number of prescriptions prescribed,
2. Number of generic versus brand‑name prescriptions, and
3. Reconciliation of a patient's prescriptions between hospital, nursing facility, and primary care physician.
SECTION 10.36.(d) The Department shall conduct a Request for Proposal (RFP) process to solicit bids from qualified outside entities with proven experience in conducting actuarial and health care studies and evaluations to:
(1) Report, assess, and evaluate the CCNC networks proficiency in fulfilling the eight tenets described above,
(2) Report, assess, and evaluate the CCNC networks implementation and achievement of the baseline data, clinically acceptable performance measures, and practice goals to improve quality and cost savings established by the IAG, and
(3) Report on the Medicaid cost savings achieved by the CCNC networks during a 12‑month period.
SECTION 10.36.(e) The contractor's report, information, and data shall be in a format that allows the Department to manipulate and assess the performance of CCNC as a whole and for its 14 networks individually. Not later than November 1, 2010, the Department shall provide to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division copies of the contractor's report for CCNC activities conduced during the 2009‑2010 fiscal year.
SECTION 10.36.(f) Under the Children's Health Insurance Program Reauthorization Act, P.L. 111‑1, the U.S. Secretary of Health and Human Services is directed to:
(1) Develop a standardized reporting format that encourages states to report information regarding the quality of pediatric health care delivered through the State Children's Health Insurance Program, and
(2) Establish a set of pediatric quality measures not later than January 1, 2011.
Given this directive, the IAG shall develop targeted baseline data, clinically acceptable performance measures that recognize nationally accredited treatment protocols, and patient, physician, and practice goals that improve quality of care, in order to realize necessary savings within North Carolina's Health Choice program. The IAG shall begin this effort so that baseline data, clinically acceptable performance measures, and practice goals to improve quality and cost savings can be implemented by July 1, 2010, the date on which the Department of Health and Human Services' Division of Medical Assistance assumes management responsibility of the Health Choice program from the State Health Plan.
COMMUNITY HEALTH CENTER CHANGES
SECTION 10.37. Of the funds appropriated in this act for Community Health Grants, the sum of seven million eight hundred sixty thousand dollars ($7,860,000) in recurring funds for the 2009‑2010 fiscal year and the sum of seven million eight hundred sixty thousand dollars ($7,860,000) for the 2010‑2011 fiscal year. These funds shall be allocated as grants on a competitive basis to rural health centers, free clinics, public health departments, school‑based health centers, qualified health centers, and other nonprofit organizations that provide primary care and preventive health services to uninsured and indigent persons. Community health centers that have received federal funds through the American Recovery and Reinvestment Act to provide new, expanded, or continuing health services are not eligible to receive funds under this section.
SECTION 10.38.(a) The Secretary of the Department of Health and Human Services, the Secretary of the Department of Environment and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed one million dollars ($1,000,000) per incident on behalf of employees of the Departments licensed to practice medicine or dentistry, on behalf of all licensed physicians who are faculty members of The University of North Carolina who work on contract for the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services for incidents that occur in Division programs, and on behalf of physicians in all residency training programs from The University of North Carolina who are in training at institutions operated by the Department of Health and Human Services. This coverage may include commercial insurance or self‑insurance and shall cover these individuals for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment or training.
Funds for Jim "Catfish" Hunter Chapter Of The ALS Association
SECTION 10.39. Funds appropriated in this act for the Jim "Catfish" Hunter Chapter of the ALS Association shall be expended only for services provided within North Carolina.
DHHS Payroll Deduction for Child Care Services
SECTION 10.40. Subject to rules adopted by the State Controller, an employee of the Department of Health and Human Services may authorize, in writing, the periodic deduction from the employee's salary or wages for employment by the State, a designated lump sum to be paid to satisfy the cost of services received for child care provided by the Department.
medicaid management information system (MMIS) funds/IMPLEMENTATION OF MMIS
SECTION 10.41.(a) Of the funds appropriated in this act to the Department of Health and Human Services (Department) from prior year earned revenues received by the Department for the Medicaid Management Information System (MMIS), the sum of eleven million seventy‑one thousand five hundred two dollars ($11,071,502) for fiscal year 2009‑2010 and the sum of nine million eight hundred twenty thousand six hundred eighty‑nine dollars ($9,820,689) for fiscal year 2010‑2011 shall be (i) deposited to the Department's information technology budget code and (ii) used to match federal funds for the procurement, design, development, and implementation of the new MMIS system and to fund the central management of the project. In the event that the Department does not receive prior year earned revenues in these amounts, the Department is authorized with approval of the Office of State Budget and Management to use other over‑realized receipts to the level appropriated in this act for MMIS expenditures.
SECTION 10.41.(b) The Department shall make full development of the replacement MMIS a top priority. During the development and implementation of MMIS, the Department shall develop plans to ensure the timely and effective implementation of 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 the Health Information System.
The Department shall make every effort to expedite the implementation of the enhancements. The Office of Information Technology Services shall work in cooperation with the Department to ensure the timely and effective implementation of the MMIS and enhancements. The contract between the Department and the contract vendor shall contain an explicit provision requiring that the MMIS have the capability to fully implement the administration of NC Health Choice, NC Kids' Care, Ticket to Work, Families Pay Part of the Cost of Services under the CAP‑MR/DD, CAP Children's Program, and all relevant Medicaid waivers and the Medicare 646 waiver as it applies to Medicaid eligibles. 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 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 does not have the authority to sign a contract for the MMIS if the contract does not contain the explicit provision required under this section.
SECTION 10.41.(c) Notwithstanding G.S. 114‑2.3, the Department 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 and the vendor to ensure that the requirements of subsection (a) of this section are met in their entirety.
SECTION 10.41.(d) The Department 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. Any changes to the design, development, and implementation schedule shall be reported as part of the Department's quarterly MMIS reporting requirements. 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 change to key milestones in either 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 change.
SECTION 10.41.(e) Beginning July 1, 2009, the Department shall make quarterly reports on changes in the functionality and projected costs of the MMIS. The first quarterly submission shall contain a final report on the contract award to include total costs and functionality of the MMIS. Each report 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 on the contract award shall also be submitted to the Joint Legislative Commission on Governmental Operations.
SECTION 10.41.(f) Upon initiation of the NC MMIS Program Reporting and Analytics Project and the Division of Health Services Regulation Project, the Department shall submit all reports regarding functionality, schedule, and cost in the next regular cycle of reporting identified in subsections (d) and (e) of this section. The Department shall ensure that the solution developed in the Reporting and Analytics Project supports the capability, in its initial implementation, to interface with the North Carolina Teachers' and State Employees' Health Plan. The costs for this capability shall be negotiated prior to the award of the Reporting and Analytics contract. The Reporting and Analytics solution must be completed simultaneously with the replacement MMIS.
North Carolina Families Accessing Services Through Technology (NC FAST) Funds
SECTION 10.42. The sum of eighteen million three hundred twenty‑seven thousand four hundred seventy‑eight dollars ($18,327,478) is appropriated from Budget Code 24441, Fund Code 2006, to the Department of Health and Human Services, Division of Central Management Services, for the 2009‑2010 fiscal year. These funds shall be used for the development and implementation of North Carolina Families Accessing Services Through Technology (NC FAST). Funds will be placed in the Department's information technology budget code and will match federal funds for project implementation.
PROGRAM ON PREVENTION OF ABUSE AND NEGLECT
SECTION 10.43.(a) The Children's Trust Fund, a program on prevention of abuse and neglect, is transferred from the Department of Public Instruction to the Division of Social Services in the Department of Health and Human Services, as if by a Type I transfer as defined in G.S. 143A‑6, with all the elements of such a transfer.
SECTION 10.43.(b) G.S. 7B‑1301 reads as rewritten:
"§ 7B‑1301. Program on Prevention of Abuse and Neglect.
(a) The State Board of Education Department
of Health and Human Services, through the Department of Public
Instruction Division of Social Services, shall implement the Program
on Prevention of Abuse and Neglect. The Department of Public Instruction
Division of Social Services subject to the approval of the State
Board of Education, shall provide the staff and support services for
implementing this program.
(b) In order to carry out the purposes of this Article:
(1) The Department of Public Instruction Division
of Social Services shall review applications and make recommendations to
the State Board of Education concerning the awarding of contracts under
this Article.
(2) The State Board of Education Division of
Social Services shall contract with public or private nonprofit organizations,
agencies, schools, or with qualified individuals to operate community‑based
educational and service programs designed to prevent the occurrence of abuse
and neglect. Every contract entered into by the State Board of Education
Division of Social Services shall contain provisions that at least twenty‑five
percent (25%) of the total funding required for a program be provided by the
administering organization in the form of in‑kind or other services and
that a mechanism for evaluation of services provided under the contract be
included in the services to be performed. In addition, every proposal to the Department
of Public Instruction Division of Social Services for funding under
this Article shall include assurances that the proposal has been forwarded to
the local department of social services for comment so that the Department
of Public Instruction Division of Social Services may consider
coordination and duplication of effort on the local level as criteria in making
recommendations to the State Board of Education.
(3) The State Board of Education Division of
Social Services, with the assistance of the Department of Public
Instruction Health and Human Services, shall develop appropriate
guidelines and criteria for awarding contracts under this Article. These
criteria shall include, but are not limited to: documentation of need within
the proposed geographical impact area; diversity of geographical areas of
programs funded under this Article; demonstrated effectiveness of the proposed
strategy or program for preventing abuse and neglect; reasonableness of
implementation plan for achieving stated objectives; utilization of community
resources including volunteers; provision for an evaluation component that will
provide outcome data; plan for dissemination of the program for implementation
in other communities; and potential for future funding from private sources.
(4) The State Board of Education Division of
Social Services, with the assistance of the Department of Public
Instruction Health and Human Services, shall develop guidelines for
regular monitoring of contracts awarded under this Article in order to maximize
the investments in prevention programs by the Children's Trust Fund and to
establish appropriate accountability measures for administration of contracts.
(5) The State Board of Education Division of
Social Services shall develop a State plan for the prevention of abuse and
neglect for submission to the Governor, the President of the Senate, and the
Speaker of the House of Representatives.
(c) To assist in implementing this Article, the State
Board of Education Division of Social Services may accept
contributions, grants, or gifts in cash or otherwise from persons,
associations, or corporations. All monies received by the State Board of
Education Division of Social Services from contributions, grants, or
gifts and not through appropriation by the General Assembly shall be deposited
in the Children's Trust Fund. Disbursements of the funds shall be on the
authorization of the State Board of Education or that Board's duly
authorized representative Department of Health and Human Services.
In order to maintain an effective expenditure and revenue control, the funds
are subject in all respects to State law and regulations, but no appropriation
is required to permit expenditure of the funds.
(d) Programs contracted for under this Article are intended to prevent abuse and neglect of juveniles. Abuse and neglect prevention programs are defined to be those programs and services which impact on juveniles and families before any substantiated incident of abuse or neglect has occurred. These programs may include, but are not limited to:
(1) Community‑based educational programs on prenatal care, perinatal bonding, child development, basic child care, care of children with special needs, and coping with family stress; and
(2) Community‑based programs relating to crisis care, aid to parents, and support groups for parents and their children experiencing stress within the family unit.
(e) No more than twenty percent (20%) of each year's total awards may be utilized for funding State‑level programs to coordinate community‑based programs."
SECTION 10.43.(c) G.S. 7B‑1302 reads as rewritten:
"§ 7B‑1302. Children's Trust Fund.
(a) There is established a fund to be known as the "Children's
Trust Fund," in the Department of State Treasurer, which shall be funded
by a portion of the marriage license fee under G.S. 161‑11.1 and a
portion of the special license plate fee under G.S. 20‑81.12. The
money in the Fund shall be used by the State Board of Education Division
of Social Services to fund abuse and neglect prevention programs so
authorized by this Article.
(b) The Department of Public Instruction Health
and Human Services shall report annually on revenues and expenditures of
the Children's Trust Fund to the Joint Legislative Commission on Governmental
Operations."
Intensive Family Preservation Services Funding And Performance Enhancements
SECTION 10.44.(a) Notwithstanding the provisions of G.S. 143B‑150.6, the Intensive Family Preservation Services (IFPS) Program shall provide intensive services to children and families in cases of abuse, neglect, and dependency where a child is at imminent risk of removal from the home and to children and families in cases of abuse where a child is not at imminent risk of removal. The Program shall be developed and implemented statewide on a regional basis. The IFPS shall ensure the application of standardized assessment criteria for determining imminent risk and clear criteria for determining out‑of‑home placement.
SECTION 10.44.(b) The Department of Health and Human Services shall require that any program or entity that receives State, federal, or other funding for the purpose of Intensive Family Preservation Services shall provide information and data that allows for:
(1) An established follow‑up system with a minimum of six months of follow‑up services.
(2) Detailed information on the specific interventions applied, including utilization indicators and performance measurement.
(3) Cost‑benefit data.
(4) Data on long‑term benefits associated with Intensive Family Preservation Services. This data shall be obtained by tracking families through the intervention process.
(5) The number of families remaining intact and the associated interventions while in IFPS and 12 months thereafter.
(6) The number and percentage by race of children who received Intensive Family Preservation Services compared to the ratio of their distribution in the general population involved with Child Protective Services.
SECTION 10.44.(c) The Department shall establish performance‑based funding protocol and shall only provide funding to those programs and entities providing the required information specified in subsection (b) of this section. The amount of funding shall be based on the individual performance of each program.
SECTION 10.44.(d) The Department shall publish an annual report on the Intensive Family Preservation Services Program, including the information and data under subdivisions (b)(2) through (b)(6) of this section.
Foster Care and Adoption Assistance Payments
SECTION 10.45.(a) The maximum rates for State participation in the foster care assistance program are established on a graduated scale as follows:
(1) $475.00 per child per month for children aged birth through 5;
(2) $581.00 per child per month for children aged 6 through 12; and
(3) $634.00 per child per month for children aged 13 through 18.
SECTION 10.45.(b) The maximum rates for the State adoption assistance program are established consistent with the foster care rates as follows:
(1) $475.00 per child per month for children aged birth through 5;
(2) $581.00 per child per month for children aged 6 through 12; and
(3) $634.00 per child per month for children aged 13 through 18.
SECTION 10.45.(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 10.45.(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 10.45.(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 10.45.(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.
Child Support Program/Enhanced Standards
SECTION 10.46. G.S. 110‑129.1(a) is amended by adding the following new subdivision to read:
"(a) In addition to other powers and duties conferred upon the Department of Health and Human Services, Child Support Enforcement Program, by this Chapter or other State law, the Department shall have the following powers and duties:
...
(8) Implement and maintain performance standards for each of the State and county child support enforcement offices across the State. The performance standards shall include the following:
a Cost per collections.
b. Consumer satisfaction.
c. Paternity establishments.
d. Administrative costs.
e. Orders established.
f. Collections on arrearages.
g. Location of absent parents.
h. Other related performance measures.
The Department shall monitor the performance of each office and shall implement a system of reporting that allows each local office to review its performance as well as the performance of other local offices. The Department shall publish an annual performance report that includes the statewide and local office performance of each child support office."
SECTION 10.47. Until the Social Services Commission adopts rules setting standardized rates for child caring institutions as authorized under G.S. 143B‑153(8), the maximum reimbursement for child caring institutions shall not exceed the rate established for the specific child caring institution by the Department of Health and Human Services, Office of the Controller. In determining the maximum reimbursement, the State shall include county and IV‑E reimbursements.
Special Children Adoption Fund
SECTION 10.48. Part 4 of Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑50.2. Special Children Adoption Fund.
(a) Funds appropriated by the General Assembly in the Current Operations Appropriations Act shall be used to support the Special Children Adoption Fund. The Division of Social Services of the Department of Health and Human 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. No local match shall be required as a condition for receipt of these funds. In accordance with State rules for allowable costs, the Special Children Adoption Fund may be used for post‑adoption services for families whose income exceeds two hundred percent (200%) of the federal poverty level.
(b) Of the total funds appropriated for the Special Children Adoption Fund each year, twenty percent (20%) of the total funds available shall be reserved for payment to participating private adoption agencies. If the funds reserved in this subsection for payments to private agencies have not been spent on or before March 31 of each State fiscal year, the Division of Social Services may reallocate those funds, in accordance with this section, to other participating adoption agencies.
(c) The Division of Social Services shall monitor the total expenditures in the Special Children Adoption Fund and redistribute unspent funds to ensure that the funds are used in accordance with the guidelines established in subsection (a) of this section. The Division of Social Services shall implement strategies to ensure that funds that have historically reverted for this program are used for the intended purpose."
Limitation on State Abortion Fund
SECTION 10.49. The limitations on funding of the performance of abortion established in Section 23.27 of Chapter 324 of the 1995 Session Laws, as amended by Section 23.8A of Chapter 507 of the 1995 Session Laws, apply to the 2009‑2010 and 2010‑2011 fiscal years.
Child Welfare Postsecondary Support Program/Use of Escheat Fund
SECTION 10.50.(a) There is appropriated from the Escheat Fund income to the Department of Health and Human Services the sum of three million one hundred sixty‑eight thousand two hundred fifty dollars ($3,168,250) for the 2009‑2010 fiscal year. These funds shall be used to support the child welfare postsecondary support program for the educational needs of foster youth aging out of the foster care system and special needs children adopted from foster care after age 12 by providing assistance with the "cost of attendance" as that term is defined in 20 U.S.C. § 1087ll. The Department shall collaborate with the State Education Assistance Authority to develop policies and procedures for the distribution of these funds.
If the interest income generated from the Escheat Fund is less than the amounts referenced in this section, the difference may be taken from the Escheat Fund principal to reach the appropriations referenced in this section; however, under no circumstances shall the Escheat Fund principal be reduced below the sum required in G.S. 116B‑6(f).
Funds appropriated by this section shall be allocated by the State Education Assistance Authority.
The purpose for which funds are appropriated under this section is in addition to other purposes for which Escheat Fund income is distributed under G.S. 116B‑7 and shall not be construed to otherwise affect the distribution of funds under G.S. 116B‑7.
SECTION 10.50.(b) Of the funds appropriated from the General Fund to the Department of Health and Human Services the sum of fifty thousand dollars ($50,000) for the 2009‑2010 fiscal year and the sum of fifty thousand dollars ($50,000) for the 2010‑2011 fiscal year shall be allocated to the North Carolina State Education Assistance Authority (SEAA). The SEAA shall use these funds only to perform administrative functions necessary to manage and distribute scholarship funds under the child welfare postsecondary support program.
SECTION 10.50.(c) Of the funds appropriated from the General Fund to the Department of Health and Human Services the sum of five hundred thousand dollars ($500,000) for the 2009‑2010 fiscal year and the sum of five hundred thousand dollars ($500,000) for the 2010‑2011 fiscal year shall be used to contract with an entity to develop and administer the child welfare postsecondary support program described under subsection (a) of this section, which development and administration shall include the performance of case management services.
SECTION 10.50.(d) Funds appropriated to the Department of Health and Human Services for the child welfare postsecondary support program shall be used only for students attending public institutions of higher education in this State.
SECTION 10.50.(e) It is the intent of the General Assembly that for the 2010‑2011 fiscal year and beyond, support for the child welfare postsecondary support program shall be appropriated from the General Fund.
SECTION 10.51.(a) The General Assembly approves the plan titled "North Carolina Temporary Assistance for Needy Families State Plan FY 2009‑2011," prepared by the Department of Health and Human Services and presented to the General Assembly. The North Carolina Temporary Assistance for Needy Families State Plan covers the period October 1, 2009, through September 30, 2011. The Department shall submit the State Plan, as revised in accordance with subsection (b) of this section, to the United States Department of Health and Human Services, as amended by this act or any other act of the 2009 General Assembly.
SECTION 10.51.(b) The counties approved as Electing Counties in North Carolina's Temporary Assistance for Needy Families State Plan FY 2009‑2011, as approved by this section are: Beaufort, Caldwell, Catawba, Iredell, Lenoir, Lincoln, Macon, and Wilson.
SECTION 10.51.(c) Counties that submitted the letter of intent to remain as an Electing County or to be redesignated as an Electing County and the accompanying county plan for fiscal years 2009 through 2011, pursuant to G.S. 108A‑27(e), shall operate under the Electing County budget requirements effective July 1, 2009. For programmatic purposes, all counties referred to in this subsection shall remain under their current county designation through September 30, 2009.
Evaluation of Consolidation of Administrative Functions of County Departments of Social Services
SECTION 10.52.(a) The Department of Health and Human Services, Division of Social Services, shall study the consolidation of administrative functions among county departments of social services.
SECTION 10.52.(b) The Department shall collaborate with counties to identify opportunities for functional consolidation, affected administrative functions, estimated cost savings, and requisite policy changes, if applicable, to accommodate the consolidation. The Department shall not consolidate administrative functions except as directed by an act of the General Assembly.
SECTION 10.52.(c) The Department shall report 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 Senate Appropriations Committee on Education/Higher Education, the House of Representatives Appropriations Subcommittee on Education, and the Fiscal Research Division by April 1, 2010.
Enhance marketing of public assistance availability
SECTION 10.53. To ensure that working families are aware of the availability of assistance from Food and Nutrition Services programs and Medical Assistance, the Office of Economic Opportunity, Division of Social Services, and county departments of social services shall enhance the marketing of available services, including Food and Nutrition Services, and Medical Assistance, for prospective recipients.
EVALUATION AND IMPLEMENTATION OF COST‑EFFECTIVE EDUCATION FOR STUDENTS WHO ARE DEAF OR HEARING‑IMPAIRED
SECTION 10.54.(a) The Department of Health and Human Services, in collaboration with the Department of Public Instruction and the Free Appropriate Public Education Task Force (Task Force), shall develop a plan to reduce the costs of residential instruction for students who are deaf or hearing‑impaired. The Plan shall include:
(1) The transitioning, as appropriate, of students served by the Western North Carolina School for the Deaf and Eastern North Carolina School for the Deaf to local education agencies (LEAs), and the identification of LEA resource requirements for the provision of appropriate instruction; and
(2) Additional instructional alternatives.
SECTION 10.54.(b) The Department of Health and Human Services, the Department of Public Instruction, and the Task Force shall report their findings and reduction plan to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Education/Higher Education, the House of Representatives Appropriations Subcommittee on Education, and the Fiscal Research Division no later than April 1, 2010.
NON‑MEDICAID REIMBURSEMENT CHANGES
SECTION 10.55. 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 higher 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 this section, 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 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.
DIVISION OF SERVICES FOR THE DEAF AND HARD OF HEARING/FUNDS TRANSFER and appropriation
SECTION 10.56.(a) Notwithstanding G.S. 62‑157, on July 1, 2009, the State Controller shall transfer five million dollars ($5,000,000) from the Special Account for Telecommunications Relay Service to Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2009‑2010 fiscal year.
SECTION 10.56.(b) Of funds appropriated with Budget Code 67425, Fund Code 6725, and Fund Code 6726 the sum of one million five hundred thousand dollars ($1,500,000) shall be transferred to Budget Code 24410 for Information Technology Projects in the Department of Health and Human Services, Division of Central Management and Support for the Data Collection and Case Management Systems initiative. This initiative shall also be supported with federal funds from the Rehabilitation Act. Funds made available under this section shall be used for the development and implementation of a data collection and case management information system to replace the current system in use by the Division of Services for the Blind, Division of Services for the Deaf and Hard of Hearing, and the Division of Vocational Rehabilitation Services. The Department shall use federal funds first and then State funds, only as necessary, from Budget Code 67425. In accordance with G.S. 143C‑1‑2(b), funds appropriated for this project shall not revert to the fund from which they came until the project is complete.
SECTION 10.56.(c) If, upon the transfer and appropriation of funds under this section, available funds are insufficient to support recurring services the Division of Services for the Deaf and Hard of Hearing is authorized to provide, the Department of Health and Human Services, shall, pursuant to G.S. 62‑157, file a petition with the North Carolina Utilities Commission to reset the surcharge provided for in G.S. 62‑157 to maintain a reasonable margin for reserve for the operation of the statewide telecommunications relay service.
State‑County Special Assistance
SECTION 10.57.(a) The eligibility of Special Assistance recipients residing in adult care homes on August 1, 1995, shall not be affected by an income reduction in the Special Assistance eligibility criteria resulting from adoption of the Rate Setting Methodology Report and Related Services, providing these recipients are otherwise eligible. The maximum monthly rate for these residents in adult care home facilities shall be one thousand two hundred thirty‑one dollars ($1,231) per month per resident.
SECTION 10.57.(b) Effective January 1, 2009, the maximum monthly rate for residents in adult care home facilities shall be one thousand two hundred seven dollars ($1,207) per month per resident unless adjusted by the Department in accordance with subsection (d) of this section.
SECTION 10.57.(c) The maximum monthly rate for residents in Alzheimer/Dementia special care units shall be one thousand five hundred fifteen dollars ($1,515) per month per resident unless adjusted by the Department in accordance with subsection (d) of this section.
SECTION 10.57.(d) Notwithstanding any other provision of this section, the Department of Health and Human Services shall review activities and costs related to the provision of care in adult care homes and shall determine what costs may be considered to properly maximize allowable reimbursement available through Medicaid personal care services for adult care homes (ACH‑PCS) under federal law. As determined, and with any necessary approval from the Centers for Medicare and Medicaid Services (CMS), and the approval of the Office of State Budget and Management, the Department may transfer necessary funds from the State‑County Special Assistance program within the Division of Social Services to the Division of Medical Assistance and may use those funds as State match to draw down federal matching funds to pay for such activities and costs under Medicaid's personal care services for adult care homes (ACH‑PCS), thus maximizing available federal funds. The established rate for State‑County Special Assistance set forth in subsections (b) and (c) of this section shall be adjusted by the Department to reflect any transfer of funds from the Division of Social Services to the Division of Medical Assistance and related transfer costs and responsibilities from State‑County Special Assistance to the Medicaid personal care services for adult care homes (ACH‑PCS). Subject to approval by the Centers for Medicare and Medicaid Services (CMS) and prior to implementing this section, the Department may disregard a limited amount of income for individuals whose countable income exceeds the adjusted State‑County Special Assistance rate. The amount of the disregard shall not exceed the difference between the Special Assistance rate prior to the adjustment and the Special Assistance rate after the adjustment and shall be used to pay a portion of the cost of the ACH‑PCS and reduce the Medicaid payment for the individual's personal care services provided in an adult care home. In no event shall the reimbursement for services through the ACH‑PCS exceed the average cost of the services as determined by the Department from review of cost reports as required and submitted by adult care homes. The Department shall report any transfers of funds and modifications of rates to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 10.57.(e) The Department of Health and Human Services shall recommend rates for State‑County Special Assistance and for Adult Care Home Personal Care Services. The Department may recommend rates based on appropriate cost methodology and cost reports submitted by adult care homes that receive State‑County Special Assistance funds and shall ensure that cost reporting is done for State‑County Special Assistance and Adult Care Home Personal Care Services to the same standards as apply to other residential service providers.
SECTION 10.58.(a) Use of Funds, Allocation of Costs, Other Authorizations.
(1) Use of funds. – Funds appropriated in this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy.
(2) Allocation of nonfederal cost of Medicaid. – The State shall pay one hundred percent (100%) of the nonfederal costs of all applicable services listed in this section. In addition, the State shall pay one hundred percent (100%) of the federal Medicare Part D clawback payments under the Medicare Modernization Act of 2004.
(3) Use of funds for development and acquisition of equipment and software. – If first approved by the Office of State Budget and Management, the Division of Medical Assistance, Department of Health and Human Services, may use funds that are identified to support the cost of development and acquisition of equipment and software and related operational costs through contractual means to improve and enhance information systems that provide management information and claims processing. The Department of Health and Human Services shall identify adequate funds to support the implementation and first year's operational costs that exceed funds allocated for the 2009‑2010 and 2010‑2011 fiscal years for the new contract for the fiscal agent for the Medicaid Management Information System.
(4) Reports. – Unless otherwise provided, whenever the Department of Health and Human Services is required by this section to report to the General Assembly, the report shall be submitted to the House of Representatives Appropriations Subcommittee for Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division of the Legislative Services Office. Reports shall be submitted on the date provided in the reporting requirement.
SECTION 10.58.(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 five‑year 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 10.58.(c) Eligibility. – Eligibility for Medicaid shall be determined in accordance with the following:
(1) Medicaid and Work First Family Assistance.
a. Income eligibility standards. – The maximum net family annual income eligibility standards for Medicaid and Work First Family Assistance and the Standard of Need for Work First Family Assistance shall be as follows:
CATEGORICALLY MEDICALLY
NEEDY – WFFA* NEEDY
Standard of Need
&
Families and
Families and WFFA* Children &
Family Children Payment AA, AB, AD*
Size Income Level Level Income Level
1 $4,344 $2,172 $2,900
2 5,664 2,832 3,800
3 6,528 3,264 4,400
4 7,128 3,564 4,800
5 7,776 3,888 5,200
6 8,376 4,188 5,600
7 8,952 4,476 6,000
8 9,256 4,680 6,300
*Work First Family Assistance (WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).
b. The payment level for Work First Family Assistance shall be fifty percent (50%) of the standard of need. These standards may be changed with the approval of the Director of the Budget.
c. The Department of Health and Human Services shall provide Medicaid coverage to 19‑ and 20‑year‑olds in accordance with federal rules and regulations.
d. Medicaid enrollment of categorically needy families with children shall be continuous for one year without regard to changes in income or assets.
(2) For the following Medicaid eligibility classifications for which the federal poverty guidelines are used as income limits for eligibility determinations, the income limits will be updated each April 1 immediately following publication of federal poverty guidelines. The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to the following:
a. All elderly, blind, and disabled people who have incomes equal to or less than one hundred percent (100%) of the federal poverty guidelines.
b. Pregnant women with incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty guidelines and without regard to resources. Services to pregnant women eligible under this subsection continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy.
c. Infants under the age of one with family incomes equal to or less than two hundred percent (200%) of the federal poverty guidelines and without regard to resources.
d. Children aged one through five with family incomes equal to or less than two hundred percent (200%) of the federal poverty guidelines and without regard to resources.
e. Children aged six through 18 with family incomes equal to or less than one hundred percent (100%) of the federal poverty guidelines and without regard to resources.
f. Family planning services to men and women of childbearing age with family incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty guidelines and without regard to resources.
g. Workers with disabilities described in G.S. 108A‑54.1 with unearned income equal to or less than one hundred fifty percent (150%) of the federal poverty guidelines.
(3) The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to adoptive children with special or rehabilitative needs regardless of the adoptive family's income.
(4) The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to "independent foster care adolescents," ages 18, 19, and 20, as defined in section 1905(w)(1) of the Social Security Act [42 U.S.C. § 1396d(w)(1)], without regard to the adolescent's assets, resources, or income levels.
(5) ICF and ICF/MR work incentive allowances. – The Department of Health and Human Services may provide an incentive allowance to Medicaid‑eligible recipients of ICF and ICF/MR services, who are regularly engaged in work activities as part of their developmental plan, and for whom retention of additional income contributes to their achievement of independence. The State funds required to match the federal funds that are required by these allowances shall be provided from savings within the Medicaid budget or from other unbudgeted funds available to the Department. The incentive allowances may be as follows:
Monthly Net Wages Monthly Incentive Allowance
$1.00 to $100.99 Up to $50.00
$101.00 to $200.99 $80.00
$201.00 to $300.99 $130.00
$301.00 and greater $212.00
(6) The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to women who need treatment for breast or cervical cancer and who are defined in 42 U.S.C. § 1396a.(a)(10)(A)(ii)(XVIII).
SECTION 10.58.(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.
(1) Hospital inpatient. – Payment for hospital inpatient services will be prescribed by the State Plan as established by the Department of Health and Human Services.
(2) Hospital outpatient. – Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Health and Human Services.
(3) Nursing facilities. – Nursing facilities providing services to Medicaid recipients who also qualify for Medicare must be enrolled in the Medicare program as a condition of participation in the Medicaid program. State facilities are not subject to the requirement to enroll in the Medicare program. Residents of nursing facilities who are eligible for Medicare coverage of nursing facility services must be placed in a Medicare‑certified bed. Medicaid shall cover facility services only after the appropriate services have been billed to Medicare.
(4) Physicians, certified nurse midwife services, certified registered nurse anesthetists, nurse practitioners. – Fee schedules as developed by the Department of Health and Human Services.
(5) Community Alternative Program, EPSDT Screens. – Payments in accordance with rate schedule developed by the Department of Health and Human Services.
(6) Home health and related services, durable medical equipment. – Payments according to reimbursement plans developed by the Department of Health and Human Services.
(7) Hearing aids. – Wholesale cost plus dispensing fee to provider.
(8) Rural health clinical services. – Provider‑based, reasonable cost, nonprovider‑based, single‑cost reimbursement rate per clinic visit.
(9) Family planning. – Negotiated rate for local health departments. For other providers see specific services, e.g., hospitals, physicians.
(10) Independent laboratory and X‑ray services. – Uniform fee schedules as developed by the Department of Health and Human Services.
(11) Ambulatory surgical centers.
(12) Private duty nursing, clinic services, prepaid health plans.
(13) Intermediate care facilities for the mentally retarded.
(14) Chiropractors, podiatrists, optometrists, dentists.
(15) Limitations on dental coverage. – Dental services shall be provided on a restricted basis in accordance with criteria adopted by the Department to implement this subsection.
(16) Medicare Buy‑In. – Social Security Administration premium.
(17) Ambulance services. – Uniform fee schedules as developed by the Department of Health and Human Services. Public ambulance providers will be reimbursed at cost.
(18) Optical supplies. – Payment for materials is made to a contractor in accordance with 42 C.F.R. § 431.54(d). Fees paid to dispensing providers are negotiated fees established by the State agency based on industry charges.
(19) Medicare crossover claims. – The Department shall apply Medicaid medical policy to Medicare claims for dually eligible recipients. The Department shall pay an amount up to the actual coinsurance or deductible or both, in accordance with the State Plan, as approved by the Department of Health and Human Services. The Department may disregard application of this policy in cases where application of the policy would adversely affect patient care.
(20) Physical therapy, occupational therapy, and speech therapy. – Services limited to EPSDT‑eligible children. Payments are to be made only to qualified providers at rates negotiated by the Department of Health and Human Services.
(21) Personal care services. – Payment in accordance with the State Plan developed by the Department of Health and Human Services.
(22) Case management services. – Reimbursement in accordance with the availability of funds to be transferred within the Department of Health and Human Services.
(23) Hospice.
(24) Medically necessary prosthetics or orthotics. – In order to be eligible for reimbursement, providers must be licensed or certified by the occupational licensing board or the certification authority having authority over the provider's license or certification. Medically necessary prosthetics and orthotics are subject to prior approval and utilization review.
(25) Health insurance premiums.
(26) Medical care/other remedial care. – Services not covered elsewhere in this section include related services in schools; health professional services provided outside the clinic setting to meet maternal and infant health goals; and services to meet federal EPSDT mandates.
(27) Pregnancy‑related services. – Covered services for pregnant women shall include nutritional counseling, psychosocial counseling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses.
(28) Drugs. – Reimbursements. Reimbursements shall be available for prescription drugs as allowed by federal regulations plus a professional services fee per month, excluding refills for the same drug or generic equivalent during the same month. Payments for drugs are subject to the provisions of this subdivision or in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. Payment of the professional services fee shall be made in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. The professional services fee shall be five dollars and sixty cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per prescription for brand‑name drugs. Adjustments to the professional services fee shall be established by the General Assembly. In addition to the professional services fee, the Department may pay an enhanced fee for pharmacy services.
Limitations on quantity. – The Department of Health and Human Services may establish authorizations, limitations, and reviews for specific drugs, drug classes, brands, or quantities in order to manage effectively the Medicaid pharmacy program, except that the Department shall not impose limitations on brand‑name medications for which there is a generic equivalent in cases where the prescriber has determined, at the time the drug is prescribed, that the brand‑name drug is medically necessary and has written on the prescription order the phrase "medically necessary."
Dispensing of generic drugs. – Notwithstanding G.S. 90‑85.27 through G.S. 90‑85.31, or any other law to the contrary, under the Medical Assistance Program (Title XIX of the Social Security Act), and except as otherwise provided in this subsection for drugs listed in the narrow therapeutic index, a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber has determined, at the time the drug is prescribed, that the brand‑name drug is medically necessary and has written on the prescription order the phrase "medically necessary." An initial prescription order for a drug listed in the narrow therapeutic drug index that does not contain the phrase "medically necessary" shall be considered an order for the drug by its established or generic name, except that a pharmacy shall not substitute a generic or established name prescription drug for subsequent brand or trade name prescription orders of the same prescription drug without explicit oral or written approval of the prescriber given at the time the order is filled. Generic drugs shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand‑name drugs. As used in this subsection, "brand name" means the proprietary name the manufacturer places upon a drug product or on its container, label, or wrapping at the time of packaging; and "established name" has the same meaning as in section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act, as amended, 21 U.S.C. § 352(e)(3).
Prior authorization. – The Department of Health and Human Services shall not impose prior authorization requirements or other restrictions under the State Medical Assistance Program on medications prescribed for Medicaid recipients for the treatment of HIV/AIDS.
(29) Other mental health services. – Unless otherwise covered by this section, coverage is limited to:
a. Services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) when provided in agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services and reimbursement is made in accordance with a State Plan developed by the Department of Health and Human Services not to exceed the upper limits established in federal regulations, and
b. For children eligible for EPSDT services provided by:
1. Licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, licensed clinical addictions specialists, and certified clinical supervisors, when Medicaid‑eligible children are referred by the Community Care of North Carolina primary care physician, a Medicaid‑enrolled psychiatrist, or the area mental health program or local management entity, and
2. Institutional providers of residential services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) for children and Psychiatric Residential Treatment Facility services that meet federal and State requirements as defined by the Department.
c. For Medicaid‑eligible adults, services provided by licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, and nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, certified clinical addictions specialists, and licensed clinical supervisors, Medicaid‑eligible adults may be self‑referred.
d. Payments made for services rendered in accordance with this subdivision shall be to qualified providers in accordance with approved policies and the State Plan. Nothing in sub‑subdivision b. or c. of this subdivision shall be interpreted to modify the scope of practice of any service provider, practitioner, or licensee, nor to modify or attenuate any collaboration or supervision requirement related to the professional activities of any service provider, practitioner, or licensee. Nothing in sub‑subdivision b. or c. of this subdivision shall be interpreted to require any private health insurer or health plan to make direct third‑party reimbursements or payments to any service provider, practitioner, or licensee.
Notwithstanding G.S. 150B‑21.1(a), the Department of Health and Human Services may adopt temporary rules in accordance with Chapter 150B of the General Statutes further defining the qualifications of providers and referral procedures in order to implement this subdivision. Coverage policy for services defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services under sub‑subdivisions a. and b.2. of this subdivision shall be established by the Division of Medical Assistance.
SECTION 10.58.(e) Provider Performance Bonds and Visits. –
(1) Subject to the provisions of this subdivision, the Department may require Medicaid‑enrolled providers 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:
a. The provider fails to demonstrate financial viability,
b. The Department determines there is significant potential for fraud and abuse,
c. The Department 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.
(1a) The Department 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 following:
a. The provider's or provider class's dollar amount of monthly billings to Medicaid.
b. The length of time an individual provider has been licensed, endorsed, certified, or accredited in this State to provide services.
c. The length of time an individual provider has been enrolled to provide Medicaid services in this State.
d. The provider's demonstrated ability to ensure adequate record keeping, staffing, and services.
e. The need to ensure adequate access to care.
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 shall provide to the affected provider written notice of the findings upon which its action is based and shall include the performance bond requirements and the conditions under which a waiver or limitation apply. The Department may adopt temporary rules in accordance with G.S. 150B‑21.1 as necessary to implement this provision.
(2) Reimbursement is available for up to 30 visits per recipient per fiscal year for the following professional services: hospital outpatient providers, physicians, nurse practitioners, nurse midwives, clinics, health departments, optometrists, chiropractors, and podiatrists. The Department of Health and Human Services shall adopt medical policies in accordance with G.S. 108A‑54.2 to distribute the allowable number of visits for each service or each group of services consistent with federal law. In addition, the Department shall establish a threshold of some number of visits for these services. The Department shall ensure that primary care providers or the appropriate CCNC network are notified when a patient is nearing the established threshold to facilitate care coordination and intervention as needed.
Prenatal services, all EPSDT children, emergency room visits, and mental health visits subject to independent utilization review are exempt from the visit limitations contained in this subdivision. Subject to appropriate medical review, the Department may authorize exceptions when additional care is medically necessary. Routine or maintenance visits above the established visit limit will not be covered unless necessary to actively manage a life threatening disorder or as an alternative to more costly care options.
SECTION 10.58.(f) Exceptions and Limitations on Services; Authorization of Co‑Payments and Other Services. –
(1) Exceptions to service limitations, eligibility requirements, and payments. – Service limitations, eligibility requirements, and payment bases in this section may be waived by the Department of Health and Human Services, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans, contracting for services, managed care plans, or community‑based services programs in accordance with plans approved by the United States Department of Health and Human Services or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient.
(2) Co‑payment for Medicaid services. – The Department of Health and Human Services may establish co‑payments up to the maximum permitted by federal law and regulation.
SECTION 10.58.(g) Rules, Reports, and Other Matters. –
(1) Rules. – The Department of Health and Human Services may adopt temporary or emergency rules according to the procedures established in G.S. 150B‑21.1 and G.S. 150B‑21.1A when it finds that these rules are necessary to maximize receipt of federal funds within existing State appropriations, to reduce Medicaid expenditures, and to reduce fraud and abuse. The Department of Health and Human Services shall adopt rules requiring providers to attend training as a condition of enrollment and may adopt temporary or emergency rules to implement the training requirement.
Prior to the filing of the temporary or emergency rules authorized under this subsection with the Rules Review Commission and the Office of Administrative Hearings, the Department shall consult with the Office of State Budget and Management on the possible fiscal impact of the temporary or emergency rule and its effect on State appropriations and local governments.
(2) Changes to Medicaid program; reports. – The Department shall report on any change it anticipates making in the Medicaid program that impacts the type or level of service, reimbursement methods, or waivers, any of which require a change in the State Plan or other approval by the Centers for Medicare and Medicaid Services (CMS). The reports shall be provided at the same time they are submitted to CMS for approval. In addition to the entities listed in subdivision (a)(4) of this section, the report shall be submitted to the Joint Legislative Health Care Oversight Committee.
SECTION 10.59.(a) Budget approval is required by the Office of State Budget and Management prior to the Department of Health and Human Services, Division of Medical Assistance, entering into any new contract or the renewal or amendment of existing contracts that exceed the current contract amounts.
SECTION 10.59.(b) The Division of Medical Assistance shall make every effort to effect savings within its operational budget and use those savings to offset its contract shortfall. Notwithstanding G.S. 143C‑6‑4(b)(3), the Department may use funds appropriated in this act to cover the contract shortfall in the Division of Medical Assistance if insufficient funds exist within the Division.
MEDICAID COST CONTAINMENT ACTIVITIES
SECTION 10.60.(a) The Department of Health and Human Services may use up to five million dollars ($5,000,000) in the 2009‑2010 fiscal year and up to five million dollars ($5,000,000) in the 2010‑2011 fiscal year in Medicaid funds budgeted for program services to support the cost of administrative activities when cost‑effectiveness and savings are demonstrated. The funds shall be used to support activities that will contain the cost of the Medicaid Program, including contracting for services, hiring additional staff, or providing grants through the Office of Rural Health and Community Care to plan, develop, and implement cost containment programs.
Medicaid cost containment activities may include prospective reimbursement methods, incentive‑based reimbursement methods, service limits, prior authorization of services, periodic medical necessity reviews, revised medical necessity criteria, service provision in the least costly settings, plastic magnetic stripped Medicaid identification cards for issuance to Medicaid enrollees, fraud detection software or other fraud detection activities, technology that improves clinical decision making, credit balance recovery and data mining services, and other cost containment activities. Funds may be expended under this section only after the Office of State Budget and Management has approved a proposal for the expenditure submitted by the Department. Proposals for expenditure of funds under this section shall include the cost of implementing the cost containment activity and documentation of the amount of savings expected to be realized from the cost containment activity.
SECTION 10.60.(b) The Department shall provide a copy of proposals for expenditures under this section to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division. On or before April 1, 2010, the Department shall report on the methods used to achieve savings and the amount saved by these methods. If the Department deploys fraud detection software, a report on the software implementation and fraud detection results shall be submitted to the House and Senate Appropriations Subcommittees on Health and Human Services and the Fiscal Research Division of the General Assembly not later than April 1, 2010.
MEDICAID SPECIAL FUND TRANSFER
SECTION 10.61. Of the funds transferred to the Department of Health and Human Services for Medicaid programs pursuant to G.S. 143C‑9‑1, there is appropriated from the Medicaid Special Fund to the Department of Health and Human Services the sum of forty‑three million dollars ($43,000,000) for the 2009‑2010 fiscal year and the sum of forty‑three million dollars ($43,000,000) for the 2010‑2011 fiscal year. These funds shall be allocated as prescribed by G.S. 143C‑9‑1(b) for Medicaid programs. Notwithstanding the prescription in G.S. 143C‑9‑1(b) that these funds not reduce State general revenue funding, these funds shall replace the reduction in general revenue funding effected in this act. The Department may also use funds in the Medicaid Special Fund to fund the settlement of the Disproportionate Share Hospital payment audit issues between the Department of Health and Human Services and the federal government related to fiscal years 1997‑2002, and funds are appropriated from the Fund for the 2009‑2010 fiscal year for this purpose.
EXTEND IMPLEMENTATION OF COMMUNITY ALTERNATIVES PROGRAMS REIMBURSEMENT SYSTEM
SECTION 10.62. Full implementation for the Community Alternatives Programs reimbursement system shall be not later than 12 months after the date on which the replacement Medicaid Management Information System becomes operational and stabilized.
DMA REDUCTION OPTION FLEXIBILITY
SECTION 10.63.(a) The Department of Health and Human Services, Division of Medical Assistance, shall, in consultation with provider groups and other interested parties, review ways to improve health care quality, ensure appropriate use of services, improve clinical outcomes, and reduce the cost of care for beneficiaries with medically complex conditions as well as to strengthen fraud and abuse oversight efforts. In the review the Division shall explore all viable options to improve the quality of care and to control health care costs, including, but not limited to, the following options:
(1) Increasing utilization review and management practices to improve value and quality internally or with private vendors with proven records in other states' Medicaid programs;
(2) Expanding and enhancing programs that increase Aged, Blind, and Disabled (ABD) Medicaid eligibles participation within CCNC's medical home efforts and/or encourage single physician care management;
(3) Developing and enhancing incentives for increased provider participation in CCNC;
(4) Requiring inpatient and outpatient care management for select Medicaid enrollees;
(5) Adopting specific network and physician performance and compliance standards within the Community Care of North Carolina (CCNC) that are tied to any enhanced reimbursement structure;
(6) Initiative to address State nursing home payment methods and to offer incentives in payment methods to achieve certain quality and cost goals;
(7) Initiative to control drug cost and utilization as well as to maximize collection of supplemental rebates;
(8) Increasing third‑party recovery and/or cost avoidance efforts, including enhancing Medicaid fraud and abuse oversight initiatives;
(9) Reducing or eliminating the occurrence of hospital "never events" – nonreimbursement for serious and costly errors in the provision of health care services that should never happen.
SECTION 10.63.(b) In order to consider all proposals prior to preparing adjustments to the fiscal year 2010‑2011 budget, the Division shall report its recommendations on methods to better manage and save Medicaid costs to the Governor's Office by January 15, 2010. All proposals shall include the steps necessary for implementation, including time frames, and the amount of projected savings over a five‑year period.
ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE
SECTION 10.64.(a) Receivables reserved at the end of the 2009‑2010 and 2010‑2011 fiscal years shall, when received, be accounted for as nontax revenue for each of those fiscal years.
SECTION 10.64.(b) For the 2009‑2010 fiscal year, the Department of Health and Human Services shall deposit from its revenues one hundred twenty‑four million nine hundred ninety‑four thousand nine hundred fifty‑four dollars ($124,994,954) with the Department of State Treasurer to be accounted for as nontax revenue. For the 2010‑2011 fiscal year, the Department of Health and Human Services shall deposit from its revenues one hundred million dollars ($100,000,000) with the Department of State Treasurer to be accounted for as nontax revenue. Any revenue collected in each of the fiscal years in excess of one of the amounts listed above shall be reserved by the State Treasurer in the Department's account for future appropriations by the General Assembly. These deposits shall represent the return of General Fund appropriations provided to the Department of Health and Human Services to provide indigent care services at State‑owned and operated mental hospitals. The treatment of any revenue derived from federal programs shall be in accordance with the requirements specified in the Code of Federal Regulations, Volume 2, Part 225.
Families Pay Part Of The Cost Of Services Under The CAP‑MR/DD Program And The CAP‑Children's Program Based On Family Income
SECTION 10.65.(a) Subject to approval from the Centers for Medicare and Medicaid Services (CMS), the Department of Health and Human Services, Division of Medical Assistance, shall, in consultation with the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and Community Alternatives Program (CAP) stakeholders, develop a schedule of cost‑sharing requirements for families of children with incomes above the Medicaid allowable limit to share in the costs of their child's Medicaid expenses under the CAP‑MR/DD (Community Alternatives Program for Mental Retardation and Developmentally Disabled) and the CAP‑C (Community Alternatives Program for Children). The cost‑sharing amounts shall be based on a sliding scale of family income and shall take into account the impact on families with more than one child in the CAP programs. In developing the schedule, the Department shall also take into consideration how other states have implemented cost‑sharing in their CAP programs. The Division of Medical Assistance may establish monthly deductibles as a means of implementing this cost‑sharing. The Department shall provide for at least one public hearing and other opportunities for individuals to comment on the imposition of cost‑sharing under the CAP program schedule.
SECTION 10.65.(b) The Division of Medical Assistance shall also, in collaboration with the Controller's Office of the Department of Health and Human Services, the Division of Information Resource Management (DIRM), and the new vendor of the replacement Medicaid Management Information System, develop business rules, program policies and procedures, and define relevant technical requirements.
SECTION 10.65.(c) Prior to seeking approval from CMS, but not later than October 1, 2009, the Department shall report to the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs, and to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. The report shall include a summary of comments the Department has received at the public hearing, business rules, policies and procedures, and technical requirements of the initiative and shall also indicate any barriers to implementing the cost‑sharing.
SECTION 10.66.(a) In the event insufficient savings are realized from enhancing the utilization management of the Prescription Advantage List, increasing the utilization of generic drugs in place of brand‑name drugs and increasing rebate collections on generic drugs, the Department of Health and Human Services shall establish and implement a preferred drug list program under the Division of Medical Assistance. The Department shall submit a medical assistance State Plan amendment to the Centers for Medicare and Medicaid Services (CMS) of the United States Department of Health and Human Services to implement the program.
SECTION 10.66.(b) The pharmaceutical and therapeutics committee of the Physician's Advisory Group (PAG) shall provide ongoing review of the preferred drug list. Members of the committee shall submit conflict of interest disclosure statements to the Department and shall have an ongoing duty to disclose conflicts of interest not included in the original disclosure.
SECTION 10.66.(c) The Department, in consultation with the PAG, shall adopt and publish policies and procedures relating to the preferred drug list, including:
(1) Guidelines for the presentation and review of drugs for inclusion on the preferred drug list,
(2) The manner and frequency of audits of the preferred drug list for appropriateness of patient care and cost‑effectiveness,
(3) An appeals process for the resolution of disputes, and
(4) Such other policies and procedures as the Department deems necessary and appropriate.
The Department and the pharmaceutical and therapeutics committee shall consider all therapeutic classes of prescription drugs for inclusion on the preferred drug list, except medications for treatment of human immunodeficiency virus or acquired immune deficiency syndrome shall not be subject to consideration for inclusion on the preferred drug list.
The Department shall maintain an updated preferred drug list in electronic format and shall make the list available to the public on the Department's Internet Web site.
The Department shall: (i) enter into a multistate purchasing pool; (ii) negotiate directly with manufacturers or labelers; (iii) contract with a pharmacy benefit manager for negotiated discounts or rebates for all prescription drugs under the medical assistance program; or (iv) effectuate any combination of these options in order to achieve the lowest available price for such drugs under such program.
The Department may negotiate supplemental rebates from manufacturers that are in addition to those required by Title XIX of the federal Social Security Act. The committee shall consider a product for inclusion on the preferred drug list if the manufacturer provides a supplemental rebate. The Department may procure a sole source contract with an outside entity or contractor to conduct negotiations for supplemental rebates.
SECTION 10.66.(d) This section becomes effective if the Department cannot demonstrate by June 1, 2010, that twenty million seven hundred ninety‑one thousand two hundred sixty‑four dollars ($20,791,264) in prescription drug savings have been realized by employing the methods outlined in subsection (a) of this section.
MEDICAID APPEALS/FUNDS DO NOT REVERT
SECTION 10.67. Funds transferred from the Department of Health and Human Services to the Office of Administrative Hearings in the 2008‑2009 fiscal year for mediation services shall not revert to the General Fund on June 30, 2009, but shall remain in the Office of Administrative Hearings for the purposes for which the funds were transferred.
CLARIFYING CHANGES TO STATE MEDICAID RESPONSIBILITIES
SECTION 10.68. Consistent with Sections 31.16.1(c) and (d) of S.L. 2007‑323 that require the State to assume responsibility for the nonfederal share of the costs of medical services provided under the Medicaid Program starting June 1, 2009, the counties shall neither bear any responsibility for settlement payments to providers nor refunds of expenditures for program service claims paid on or before June 1, 2009. Counties will continue to participate in their share of administrative costs.
CO‑PAYMENTS FOR TICKET TO WORK
SECTION 10.69. G.S. 108A‑54.1(d) reads as rewritten:
"§ 108A‑54.1. Medicaid buy‑in for workers with disabilities.
…
(d) Fees, Premiums, and Co‑Payments. –
Individuals who participate in HCWD and have countable income greater than one
hundred fifty percent (150%) of FPG shall pay an annual enrollment fee of fifty
dollars ($50.00) to their county department of social services. Individuals who
participate in HCWD and have countable income greater than or equal to two
hundred percent (200%) of FPG shall pay a monthly premium in addition to the
annual fee. The Department shall set a sliding scale for premiums, which is
consistent with applicable federal law. An individual with countable income
equal to or greater than four hundred fifty percent (450%) of FPG shall pay not
less than one hundred percent (100%) of the cost of the premium, as determined
by the Department. The premium shall be based on the experience of all
individuals participating in the Medical Assistance Program. Individuals who
participate in HCWD are subject to co‑payments equal to those required
under the North Carolina Health Choice Program. Medical Assistance
Program."
SECTION 10.70.(a) G.S. 108A‑70.11(5) reads as rewritten:
"(5) "Medical Assistance Program" means the Medical Assistance Program established pursuant to G.S. 108A‑54 and includes the North Carolina Division of Medical Assistance and or its fiscal agent."
SECTION 10.70.(b) G.S. 108A‑70.12(a) reads as rewritten:
"§ 108A‑70.12. Liability for certain acts; damages; effect of repayment.
(a) Liability for Certain Acts. – It shall be unlawful
for any provider of medical assistance under the Medical Assistance Program to:to
do any of the following:
(1) Knowingly present, or cause to be presented to the
Medical Assistance Program a false or fraudulent claim for payment or approval;
or approval.
(2) Knowingly make, use, or cause to be made or used a
false record or statement to get a false or fraudulent claim paid or approved
by the Medical Assistance Program.Program.
(3) Conspire to defraud the Medical Assistance Program by obtaining a false or fraudulent claim allowed or paid.
(4) Knowingly make, use, or cause to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the Medical Assistance Program. Each claim presented or caused to be presented in violation of this section is a separate violation."
SECTION 10.70.(c) G.S. 108A‑70.12(b)(1) reads as rewritten:
"(b) Damages. –
(1) Except as provided in subdivision (2) of this
subsection, a court shall assess against any provider of medical assistance
under the Medical Assistance Program who violates this section a civil penalty
of not less than five thousand five hundred dollars ($5,000)($5,500)
and not more than ten thousand dollars ($10,000)eleven thousand
dollars ($11,000) plus three times the amount of damages which the Medicaid
Medical Assistance Program sustained because of the act of the provider."
SECTION 10.70.(d) Article 2 of Chapter 108A of the General Statutes is amended by adding the following new Part to read:
"Part 7A. Civil Action by Private Persons for Provider False Claims.
"§ 108A‑70.17. Civil action filed by private persons.
(a) A person may initiate a civil action for a violation of G.S. 108A‑70.12 on behalf of the person and the State. The action shall be brought in the name of the State. The action may be dismissed prior to service of the complaint upon the defendant under subsection (c) of this section only if the court and the Attorney General have given written consent to the dismissal and their reasons for consenting.
(b) A copy of the complaint and written disclosure of substantially all material evidence and information the person possesses shall be served on the State. The complaint shall be filed in camera, shall remain under seal for at least 120 days, and shall not be served on the defendant until the court so orders. The State may elect to intervene and proceed with the action within 120 days after it receives both the complaint and the material evidence and information. The State may, for good cause shown, move the court for a partial lifting of the seal to facilitate the investigative process or settlement.
(c) The State may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal. Any of these motions may be supported by affidavits or other submission in camera. The time period to respond to any complaint filed under this section shall commence 21 days after the complaint is unsealed and served upon the defendant.
(d) Before the expiration of the 120‑day period or any extensions obtained under subsection (c) of this section, the State shall either proceed with the action, in which case the action shall be conducted by the State, or notify the court that it declines to take over the action, in which case the person initiating the action shall have the right to prosecute the action.
(e) When a person initiates an action under this section, no person other than the State may intervene or bring a related action based on the facts underlying the pending action. If another action is filed based on the facts underlying the pending action while the complaint is sealed under subsections (b) and (c) of this section, the court may consolidate the actions or dismiss the subsequent action.
"§ 108A‑70.17A. Rights of private plaintiff and State.
(a) If the State proceeds with the action, it shall have the primary responsibility for prosecuting the action and shall not be bound by any act of the person initiating the action. The person bringing the action shall have the right to continue as a party to the action, subject to the limitations of this section.
(b) The State may dismiss the action notwithstanding the objections of the person initiating the action if the person has been notified by the State of the filing of the motion, and the court has provided the person with an opportunity for a hearing on the motion.
(c) The State may settle the action with the defendant notwithstanding the objections of the person initiating the action if the court determines, after a hearing, that the proposed settlement is fair, adequate, and reasonable under all the circumstances. Upon a showing of good cause, such hearing may be held in camera.
(d) If the State proceeds with the action, the court may, in its discretion, impose limitations on the person's participation in the litigation as set forth in subsection (e) of this section. Such limitations must be imposed after any of the following:
(1) A showing by the State that unrestricted participation during the course of the litigation by the person initiating the action would interfere with or unduly delay the State's prosecution of the case, or would be repetitious, irrelevant, or for purposes of harassment.
(2) A showing by the defendant that unrestricted participation during the course of the litigation by the person initiating the action would be for purposes of harassment or would cause the defendant undue burden or unnecessary expense.
(e) Limitations on participation of the person initiating the action shall include all of the following:
(1) Limiting the number of witnesses the person may call.
(2) Limiting the length of the testimony of such witnesses.
(3) Limiting the person's cross‑examination of witnesses.
(4) Other limits on the participation by the person initiating the action in the litigation as the court deems appropriate.
(f) If the State elects not to proceed with the action, the person who initiated the action shall have the right to conduct the action. If the State so requests, it shall be served with copies of all pleadings filed in the action and shall be supplied with copies of all deposition transcripts at the State's expense. When a person initiating the action proceeds with the action, the court, without limiting the status and rights of the person initiating the action, may nevertheless permit the State to intervene at a later date upon a showing of good cause.
(g) Whether or not the State proceeds with the action, upon a showing by the State that certain actions of discovery by the person initiating the action would interfere with the State's investigation or prosecution of a criminal or civil matter arising out of the same facts, the court may stay the discovery for a period of not more than 60 days. The showing by the State shall be conducted in camera. The court may extend the 60‑day period upon a further showing in camera that the State has pursued the criminal or civil investigation or proceedings with reasonable diligence and any proposed discovery in the civil action will interfere with the ongoing criminal or civil investigation or prosecution of the criminal or civil matter.
(h) Notwithstanding G.S. 108A‑70.17(b), the State may elect to pursue its claim through any alternate remedy available to the State, including any administrative proceeding to determine a civil money penalty. Any finding of fact or conclusion of law made in the alternate proceeding that has become final shall be conclusive on all parties to an action under this Part. For purposes of this subsection, a finding or conclusion is final if it has been finally determined on appeal by a court of competent jurisdiction of the State, if the time for filing an appeal with respect to the finding or conclusion has expired, or if the finding or conclusions are not subject to judicial review.
"§ 108A‑70.17B. Award to qui tam plaintiff.
(a) Except as otherwise provided in this section, if the State proceeds with an action brought by a person under G.S. 108A‑70.17, the person shall receive at least fifteen percent (15%) but not more than twenty‑five percent (25%) of the proceeds of the action or settlement of the claim, if any, depending upon the extent to which the person substantially contributed to the prosecution of the action. The plaintiff's share in the proceeds of the action or settlement is administrative costs of the action. A share of the proceeds of an action or settlement of the claim shall not be awarded to the person initiating the action in State court under this Part if the person has received or may receive a share of the proceeds or settlement of an action or claim on the same facts brought in federal court. Where the action is one that the court finds to be based primarily on disclosures of specific information, other than information proved by the person initiating the action, relating to allegations or transactions in a criminal, civil, or administrative hearing, in a legislative, administrative, or State Auditor's report, hearing, audit, or investigation, or from the news media, the court may reduce the award under this subsection to such sums as it considers appropriate, but in no case more than ten percent (10%) of the proceeds of the action, taking into account the significance of the information and the role of the person initiating the action in advancing the case to litigation.
(b) If the State does not proceed with an action, the person initiating the action or settling the claim shall receive an amount that the court decides is reasonable for collecting the civil penalty and damages, if awarded. The amount shall be not less than twenty‑five percent (25%) and not more than thirty percent (30%) of the proceeds of the action or settlement and shall be paid out of the proceeds.
(c) Notwithstanding subsections (a) and (b) of this section, if the person initiating the action is a person who primarily planned and initiated the violation of G.S. 108A‑70.12 upon which the action was brought, that person shall be dismissed as a qui tam plaintiff and shall not receive any share of the proceeds of the action. If the person initiating the action is convicted of criminal conduct arising from the person's role in the violation of G.S. 108A‑70.12, that person shall be dismissed from the civil action and shall not receive any share of the proceeds of the action. The dismissal shall not prejudice the right of the State to continue the action.
(d) If the State does not proceed with the action and the person initiating the action conducts the action, the court may award to the defendant its reasonable attorneys' fees and expenses if the defendant prevails in the action and if the court finds that the claim of the person bringing the action was clearly frivolous, clearly vexatious, or brought primarily for purposes of harassment.
"§ 108A‑70.17C. Certain actions barred.
(a) No court shall have jurisdiction over an action brought under this Part based on information discovered by a present or former employee of the State or a political subdivision of the State during the course of the present or former employee's employment unless that employee first, in good faith, exhausted existing internal procedures for reporting and seeking recovery of the falsely claimed sums through official channels, and unless the State or political subdivision failed to act on the information provided within a reasonable period of time.
(b) In no event may a person bring an action under this Part that is based upon allegations or transactions that are the subject of a criminal action, civil action, or an administrative proceeding in which the State is already a party.
(c) No court shall have jurisdiction over an action under this Part based upon the public disclosure of allegations or transactions in a criminal, civil, or administrative hearing, in a legislative, administrative, or State Auditor's report, hearing, audit, or investigation, or from the news media, unless the action is brought by the Attorney General, or the person initiating the action is an original source of the information. For purposes of this section, "original source" means an individual who has direct and independent knowledge of the information on which the allegations are based and has voluntarily provided the information to the State before filing an action under this Part that is based on the information.
(d) The State is not liable for expenses a person incurs in bringing an action under this Part.
(e) G.S. 108A‑70.14 and G.S. 108A‑70.15 apply to this Part.
"§ 108A‑70.17D. Procedure; statute of limitations.
(a) A civil action under this Part may not be brought after the later of either of the following:
(1) More than six years after the date on which the violation is committed.
(2) More than three years after the date when facts material to the right of the action are known or reasonably should have been known by the official of the State charged with responsibility to act in the circumstances.
(b) If the civil action is brought under subdivision (a)(2) of this section, it may not be brought more than 10 years after the date on which the violation is committed."
SECTION 10.70.(e) G.S. 108A‑70.15 reads as rewritten:
"§ 108A‑70.15. Employee remedies.
(a) In the absence of fraud or malice, no person who
furnishes information to officials of the State responsible for investigating
false claims violations shall be liable for damages in a civil action for any
oral or written statement made or any other action that is necessary to supply
information required pursuant to this Part. Part or Part 7A of this
Article.
(b) Any employee of a provider who is discharged,
demoted, suspended, threatened, harassed, or in any other manner discriminated
against in the terms and conditions of employment by the employee's employer
because of lawful acts done by the employee on behalf of the employee or others
in furtherance of an action under G.S. 108A‑70.12, G.S. 108A‑70.12,
or Part 7A of this Article, including investigation for, initiation of,
testimony for, or assistance in an action filed or to be filed under G.S. 108A‑70.12,
G.S. 108A‑70.12, or Part 7A of this Article, shall be
entitled to all relief necessary to make the employee whole. Relief shall
include reinstatement with the same seniority status as the employee would have
had but for the discrimination, two times the amount of back pay, interest on
the back pay, and compensation for any special damages sustained as a result of
the discrimination, including litigation costs and reasonable attorneys' fees.
An employee may bring an action in the appropriate court for the relief
provided in this section."
SECTION 10.70.(f) Provided that the Medicaid False Claims State legislation is adopted, and the State legislation meets federal Center for Medicare and Medicaid Services criteria to receive ten percent (10%) bonuses subject to the False Claims Act, the Department of Health and Human Services, Division of Medical Assistance, shall transfer three hundred fifty‑two thousand one hundred thirty‑six dollars ($352,136) in fiscal year 2010‑2011, and each year thereafter, to fund five permanent staff positions at the Attorney General's Office necessary to implement the Medicaid False Claims Act.
SECTION 10.70.(g) Subsection (b) of this section becomes effective December 1, 2009, and applies to offenses committed on or after that date. The remainder of this section becomes effective July 1, 2009, and applies to civil actions that accrue on or after that date.
SECTION 10.71. The Department of Health and Human Services shall freeze rates for fiscal year 2009‑2010 for most Medicaid providers at the level authorized in fiscal year 2008‑2009. The rate freeze applies to all Medicaid private and public providers with the following exceptions: federally qualified health clinics, rural health centers, State institutions, outpatient hospital, pharmacy, and the noninflationary components of the case‑mix reimbursement system for nursing facilities. Medicaid rates predicated upon Medicare fee schedules shall follow Medicare reductions but not Medicare increases unless federally required. Inflationary increases for Medicaid providers paying provider fees (private ICF‑MRs and nursing facilities) can occur if the State share of the increases can be funded with provider fees.
MEDICAID WAIVER FOR LOW‑INCOME PERSONS WITH HIV
SECTION 10.72. The Department of Health and Human Services, Division of Medical Assistance, shall study whether to apply to the Centers for Medicare and Medicaid Services (CMS) for a 1115 waiver to permit individuals who test positive for HIV and have incomes at or below two hundred percent (200%) of the federal poverty level to access Medicaid services. The study shall determine the number of people who may be eligible, and the financial, programmatic, and technical impact of the waiver. The Department shall report on the results of its study of the waiver to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than December 31, 2009.
SECTION 10.73. The Department of Health and Human Services, Division of Medical Assistance, shall study policies that will prevent a Medicaid recipient from losing Medicaid eligibility when the annual Social Security and Railroad Retirement Cost of Living Adjustments (COLAs) and the annual Federal Poverty Level adjustment cause a Medicaid recipient to become income‑ineligible for Medicaid. The policies shall apply only in cases where Medicaid income eligibility is affected only by Social Security and Railroad Retirement COLAs and Federal Poverty Level adjustments and shall not render a Medicaid recipient eligible if all other eligibility requirements are not met. The Department shall report the results of the study to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on or before December 31, 2009. The Department shall also study policies that allow individuals who are at or marginally above Medicaid income limits to buy‑in to Medicaid coverage on a sliding fee scale.
REDUCE INFANT MORTALITY AND PRETERM BIRTHS
SECTION 10.74.(a) The Department of Health and Human Services, Division of Medical Assistance, shall seek a Medicaid 1115 waiver or implement other available Medicaid options to provide interconceptional coverage to low‑income women with incomes below one hundred eighty‑five percent (185%) of the federal poverty guidelines who have given birth to a high‑risk infant. A high‑risk infant is defined as weighing less than 1500 grams, is born less than 34 weeks gestation, is born with a congenital anomaly, or who has died within the first 28 days of life.
SECTION 10.74.(b) Interconceptional care shall be limited to two years following the birth of a high‑risk infant, or until a subsequent birth, whichever comes first.
SECTION 10.74.(c) The Division is authorized to develop a benefit package to improve interconceptional care to decrease poor birth outcomes in subsequent pregnancies.
SECTION 10.74.(d) The Division shall provide estimates of the cost savings from improved birth outcomes that will offset the cost of providing Medicaid coverage to this targeted population. The Division shall report the status of the waiver to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on or before October 1, 2009. The Division shall not implement the waiver unless authorized by an act of the General Assembly.
SECTION 10.75. The Department of Health and Human Services, Division of Health Services Regulation, may use up to eighty‑eight thousand dollars ($88,000) for fiscal year 2009‑2010 and ninety‑three thousand seven hundred dollars ($93,700) for fiscal year 2010‑2011 of existing resources to continue the NC New Organizational Vision Award certification program. The Division shall use federal civil monetary penalty receipts as a source of support for this initiative, when appropriate.
SECTION 10.76.(a) G.S. 131D‑2(b) reads as rewritten:
"§ 131D‑2. Licensing of adult care homes for the aged and disabled.
(b) Licensure; inspections. –
(1) The Department of Health and Human Services shall
inspect and license, under rules adopted by the Medical Care Commission, all
adult care homes for persons who are aged or mentally or physically disabled
except those exempt in subsection (c) of this section. Licenses issued under
the authority of this section shall be valid for one year from the date of
issuance unless revoked earlier by the Secretary for failure to comply with any
part of this section or any rules adopted hereunder. Licenses shall be renewed
annually upon filing and the Department's approval of the renewal application.
The Department shall charge each adult care home with six or fewer beds a
nonrefundable annual license fee in the amount of two hundred fifty dollars
($250.00).three hundred fifteen dollars ($315.00). The Department
shall charge each adult care home with more than six beds a nonrefundable
annual license fee in the amount of three hundred fifty dollars ($350.00)three
hundred sixty dollars ($360.00) plus a nonrefundable annual per‑bed
fee of twelve dollars and fifty cents ($12.50)seventeen dollars and
fifty cents ($17.50)."
SECTION 10.76.(b) G.S. 131E‑147 reads as rewritten:
"§ 131E‑147. Licensure requirement.
(a) No person shall operate an ambulatory surgical facility without a license obtained from the Department.
(b) Applications shall be available from the
Department, and each application filed with the Department shall contain all
necessary and reasonable information that the Department may by rule require. A
license shall be granted to the applicant upon a determination by the
Department that the applicant has complied with the provisions of this Part and
the rules promulgated by the Commission under this Part. The Department shall
charge the applicant a nonrefundable annual base license fee in the amount of seven
hundred dollars ($700.00)eight hundred fifty dollars ($850.00) plus
a nonrefundable annual per‑operating room fee in the amount of fifty
dollars ($50.00).seventy‑five dollars ($75.00)."
SECTION 10.76.(c) G.S. 131E‑167(a) reads as rewritten:
"§ 131E‑167. Certificate requirement.
(a) Applications for certification shall be available
from the Department, and each application filed with the Department shall
contain all necessary and reasonable information that the Department may by
rule require. A certificate shall be granted to the applicant for a period not
to exceed one year upon a determination by the Department that the applicant
has substantially complied with the provisions of this Article and the rules
promulgated by the Department under this Article. The Department shall charge
the applicant a nonrefundable annual certification fee in the amount of two
hundred fifty dollars ($250.00).three hundred eighty‑five dollars
($385.00)."
SECTION 10.76.(d) G.S. 131E‑138(c) reads as rewritten:
"§ 131E‑138. Licensure requirements.
(c) An application for a license shall be available
from the Department, and each application filed with the Department shall
contain all information requested by the Department. A license shall be granted
to the applicant upon a determination by the Department that the applicant has
complied with the provisions of this Part and the rules promulgated by the
Commission under this Part. The Department shall charge the applicant a
nonrefundable annual license fee in the amount of four hundred dollars
($400.00).five hundred ten dollars ($510.00)."
SECTION 10.76.(e) G.S. 131E‑77 reads as rewritten:
"§ 131E‑77. Licensure requirement.
(a) No person or governmental unit shall establish or operate a hospital in this state without a license. An infirmary is not required to obtain a license under this Part.
(b) The Commission shall prescribe by rule that any licensee or prospective applicant seeking to make specified types of alteration or addition to its facilities or to construct new facilities shall submit plans and specifications before commencement to the Department for preliminary inspection and approval or recommendations with respect to compliance with the applicable rules under this Part.
(c) An applicant for licensing under this Part shall provide information related to hospital operations as requested by the Department. The required information shall be submitted by the applicant on forms provided by the Department and established by rule.
(d) The Department shall renew each license in accordance with the rules of the Commission. The Department shall charge the applicant a nonrefundable annual base license fee plus a nonrefundable annual per‑bed fee as follows:
Facility Type Number of Beds Base Fee Per‑Bed Fee
General Acute Hospitals: 1‑49 beds $250.00 $12.50 $17.50
50‑99 beds $350.00 $12.50 $17.50
100‑199 beds $450.00 $12.50 $17.50
200‑399 beds $550.00 $12.50 $17.50
400‑699 beds $750.00 $12.50 $17.50
700+ beds $950.00 $12.50 $17.50
Other Hospitals: $500.00 $12.50 $17.50
(e) The Department shall issue the license to the operator of the hospital who shall not transfer or assign it except with the written approval of the Department. The license shall designate the number and types of inpatient beds, the number of operating rooms, and the number of gastrointestinal endoscopy rooms.
(f) The operator shall post the license on the licensed premises in an area accessible to the public."
SECTION 10.76.(f) G.S. 122C‑23(h) reads as rewritten:
"(h) The Department shall charge facilities licensed under this Chapter a nonrefundable annual base license fee plus a nonrefundable annual per‑bed fee as follows:
Type of Facility Number of Beds Base Fee Per‑Bed Fee
Facilities (non‑ICF/MR): 0 beds $175.00
$215.00 $0
1 to 6 beds $250.00
$305.00 $0
More than 6 beds $350.00
$475.00 $12.50 $17.50
ICF/MR Only: 1 to 6 beds $650.00
$845.00 $0
More than 6 beds $650.00
$800.00 $12.50 $17.50"
SECTION 10.76.(g) G.S. 131E‑102(b) reads as rewritten:
"(b) Applications shall be available from the
Department, and each application filed with the Department shall contain all
necessary and reasonable information that the Department may by rule require. A
license shall be granted to the applicant upon a determination by the
Department that the applicant has complied with the provisions of this Part and
the rules promulgated under this Part. The Department shall charge the
applicant a nonrefundable annual license fee in the amount of four hundred
fifty dollars ($450.00) four hundred twenty dollars ($420.00) plus a
nonrefundable annual per‑bed fee of twelve dollars and fifty cents
($12.50).seventeen dollars and fifty cents ($17.50)."
DHSR initial LICENSURE FEES NEW FACILITIES
SECTION 10.77. Article 16 of Chapter 131E of the General Statutes is amended by adding the following new section to read:
"§ 131E‑272. Initial licensure fees for new facilities.
The following fees are initial licensure fees for new facilities and are applicable as follows:
Number Initial Initial
Facility Type of Beds License Fee Bed Fee
Adult Care Licensure More than 6 $400.00 $19.00
6 or Fewer $350.00 $ ‑
Acute and Home Care
General Acute Hospitals 1‑49 $550.00 $19.00
50‑99 $750.00 $19.00
100‑199 $950.00 $19.00
200‑399 $1150.00 $19.00
400‑699 $1550.00 $19.00
700+ $1950.00 $19.00
Other Hospitals $1050.00 $19.00
Home Care ‑ $560.00 $ ‑
Ambulatory Surgical Ctrs. ‑ $900.00 $85.00
Hospice (Free Standing) ‑ $450.00 $ ‑
Abortion Clinics ‑ $750.00 $ ‑
Cardiac Rehab. Centers ‑ $425.00 $ ‑
Nursing Home & L&C
Nursing Homes $470.00 $19.00
All Others $ ‑ $19.00
Mental Health Facilities
Nonresidential $265.00 $ ‑
Non ICF‑MR 6 or fewer $350.00 $ ‑
ICF‑MR only 6 or fewer $900.00 $ ‑
Non ICF‑MR More than 6 $525.00 $19.00
ICF‑MR only More than 6 $850.00 $19.00."
SECTION 10.78.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2010, 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) $87,518,579
02. Work First County Block Grants 94,453,315
03. Child Protective Services – Child Welfare
Workers for Local DSS 14,452,391
04. Work First – Boys and Girls Clubs 800,000
05. Work First – Connect, Inc. 67,523
06. Child Welfare Collaborative 887,517
Division of Child Development
07. Subsidized Child Care Program 61,087,077
Division of Public Health
08. Teen Pregnancy Prevention Initiatives 450,000
DHHS Administration
09. Division of Social Services 1,093,176
10. Office of the Secretary 75,392
11. Office of the Secretary/DIRM – TANF
Automation Projects 720,000
12. Office of the Secretary/DIRM – NC FAST
Implementation 1,200,000
Transfers to Other Block Grants
Division of Child Development
13. Transfer to the Child Care and
Development Fund 84,330,900
Division of Social Services
14. Transfer to Social Services Block Grant for Child
Protective Services – Child Welfare Training in
Counties 2,550,000
15. Transfer to Social Services Block Grant for
Maternity Homes 60,503
16. Transfer to Social Services Block Grant for Teen
Pregnancy Prevention Initiatives 2,500,000
17. Transfer to Social Services Block Grant for County
Departments of Social Services for Children's Services 4,500,000
18. Transfer to Social Services Block Grant for
Foster Care Services 390,000
19. Transfer to Social Services Block Grant for
Medically Fragile Children 260,000
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $357,396,373
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) CONTINGENCY FUNDS BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Work First Family Assistance (Cash Assistance) $1,857,193
02. Work First – Boys and Girls Clubs 1,200,000
03. Work First – Afterschool Services
For At‑Risk Children 1,229,785
04. Work First – Afterschool Programs
For At‑Risk Youth in Middle Schools 300,000
05. Work First – Connect, Inc. (Work Central) 301,025
06. Work First – Citizens Schools Program 360,000
07. County Demonstration Grants 3,239,789
08. Adoption Services – Special Children's Adoption Fund 3,000,000
09. Family Violence Prevention 2,200,000
10. Child Welfare Collaborative 987,995
11. Work First Functional Assessment 600,000
12. Electing County State Funding Swap Out 2,378,213
13. State Subsidized Child Care Funding Swap 12,452,484
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) CONTINGENCY FUNDS BLOCK GRANT $30,106,484
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 – $4,500,000)
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 243,121
05. Foster Care Services 2,372,619
(Transfer from TANF – $390,000)
06. Maternity Homes (Transfer from TANF – $60,503) 943,002
07. Special Children Adoption Incentive Fund 500,000
08. Child Protective Services‑Child Welfare Training
for Counties 2,550,000
(Transfer from TANF)
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 Community Health Program 188,263
Division of Public Health
15. Teen Pregnancy Prevention Initiatives 2,500,000
(Transfer from TANF)
16. Services for Medically Fragile Children
(Transfer from TANF – $260,000) 360,000
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 3,714,211
Division of Health Service Regulation
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 688,436
22. Division of Social Services 892,624
23. Office of the Secretary/Controller's Office 138,058
24. Office of the Secretary/DIRM 87,483
25. Division of Child Development 15,000
26. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 29,665
27. Division of Health Service Regulation 235,625
28. Office of the Secretary‑NC Inter‑Agency Council
For Coordinating Homeless Programs 250,000
29. Office of the Secretary 48,053
Transfers to Other State Agencies
Department of Administration
30. NC Commission of Indian Affairs In‑Home
Services for the Elderly 203,198
Transfers to Other Block Grants
Division of Public Health
31. Transfer to Preventive Health Services Block Grant
For HIV/STD Prevention and Community Planning 145,819
TOTAL SOCIAL SERVICES BLOCK GRANT $ 63,735,946
LOW‑INCOME HOME ENERGY ASSISTANCE BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Low‑Income Energy Assistance Program (LIEAP) $ 25,909,124
02. Crisis Intervention Program (CIP) 20,224,269
Office of the Secretary – Office of Economic Opportunity
03. Weatherization Program 1,000,000
04. Heating Air Repair & Replacement Program (HARRP) 3,385,583
Local Administration
Division of Social Services
05. County DSS Administration 3,608,360
Office of the Secretary – Office of Economic Opportunity
06. Local Residential Energy Efficiency Service
Providers – Weatherization 420,035
07. Local Residential Energy Efficiency Service
Providers – HARRP 195,910
DHHS Administration
08. Division of Social Services 275,000
09. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 8,128
10. Office of the Secretary/DIRM 269,935
11. Office of the Secretary/Controller's Office 12,332
12. Office of the Secretary/Office of Economic
Opportunity – Weatherization 294,874
13. Office of the Secretary/Office of Economic
Opportunity – HARRP 137,574
Transfers to Other State Agencies
14. Department of Administration –
N.C. State Commission of Indian Affairs 67,042
TOTAL LOW‑INCOME HOME ENERGY ASSISTANCE
BLOCK GRANT $ 55,808,166
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
Local Program Expenditures
Division of Child Development
01. Subsidized Child Care Services (CCDF) $144,097,307
02. Contract Subsidized Child Care Services Support 507,617
03. Subsidized Child Care Services
(Transfer from TANF) 84,330,900
04. Quality and Availability Initiatives 20,760,876
05. T.E.A.C.H. Program 3,800,000
Division of Social Services
06. Local Subsidized Child Care Services Support $16,594,417
DHHS Administration
Division of Child Development
07. DCD Administrative Expenses 6,539,277
Division of Central Administration
08. DHHS Central Administration – DIRM
Technical Services 763,356
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $277,393,750
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT RECEIVED THROUGH THE AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA)
Local Program Expenditures
Division of Child Development
01. Subsidized Child Care Services (CCDF)
(High Quality Four‑Year‑Old Classrooms) $53,993,329
02. Contract Subsidized Child Care Services Support 29,030
DHHS Program Expenditures
Division of Child Development
03. Quality and Availability Initiatives 11,519,144
Local Administration
Division of Social Services
04. Subsidy Services Support 2,001,631
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT RECEIVED THROUGH ARRA $67,543,143
MENTAL HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. Mental Health Services – Adult $ 5,977,762
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
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 11,699,753
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
Local Program Expenditures
Division of Mental Health, Developmental Disabilities, and Substance Abuse Services
01. Substance Abuse Services – Adult $ 22,258,080
02. Substance Abuse Treatment Alternative for
Women 8,069,524
03. Substance Abuse – HIV and IV Drug 5,116,378
04. Substance Abuse Prevention – Child 7,186,857
05. Substance Abuse Services – Child 4,940,500
06. Implementation – Institute of Medicine's
Study Recommendations 250,000
Division of Public Health
07. Risk Reduction Projects 633,980
08. Aid‑to‑Counties 209,576
09. Maternal Health 37,779
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 7,534,865
02. Women's Health 7,701,691
03. Oral Health 38,041
DHHS Program Expenditures
Division of Public Health
04. Children's Health Services 1,359,636
05. Women's Health 135,452
06. State Center for Health Statistics 179,483
07. Quality Improvement in Public Health 14,646
08. Health Promotion 88,746
09. Office of Minority Health 55,250
10. Immunization Program – Vaccine Distribution 382,648
DHHS Administration
Division of Public Health
11. Division of Public Health Administration 631,966
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 18,122,424
PREVENTIVE HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
Division of Public Health
01. NC Statewide Health Promotion $1,730,653
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
Division of Public Health
04. NC Statewide Health Promotion 1,699,044
05. Oral Health 70,000
06. State Laboratory of Public Health 16,600
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $3,859,228
COMMUNITY SERVICES BLOCK GRANT
Local Program Expenditures
Office of Economic Opportunity
01. Community Action Agencies $ 16,673,336
02. Limited Purpose Agencies 926,297
DHHS Administration
03. Office of Economic Opportunity 926,296
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 18,525,929
COMMUNITY SERVICES BLOCK GRANT RECEIVED THROUGH THE AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA)
Local Program Expenditures
Office of Economic Opportunity
01. Community Action Agencies $ 20,558,585
02. Limited Purpose Agencies 1,093,541
DHHS Administration
03. Office of Economic Opportunity 218,709
TOTAL COMMUNITY SERVICES BLOCK GRANT
RECEIVED THROUGH ARRA $ 21,870,834
GENERAL PROVISIONS
SECTION 10.78.(b) 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.
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.
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 10.78.(c) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2010, according to the schedule enacted for State fiscal year 2009‑2010 or until a new schedule is enacted by the General Assembly.
SECTION 10.78.(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 Grants 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 10.78.(e) The sum of one million ninety‑three thousand one hundred seventy‑six dollars ($1,093,176) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2009‑2010 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 10.78.(f) The sum of two million two hundred thousand dollars ($2,200,000) appropriated under this section in TANF Contingency funds to the Department of Health and Human Services, Division of Social Services, for the 2009‑2010 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, 2009. 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, 2009, and the county's proportion of the statewide total of the individuals receiving domestic violence services from programs funded by the Council for