GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
S 3
SENATE BILL 1741
Second Edition
Engrossed 5/23/06
Third Edition Engrossed 5/25/06
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Short Title: Modify Appropriations Act of 2005. |
(Public) |
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Sponsors: |
Senators Garrou; Dalton, Hagan, Albertson, Atwater, Berger of Franklin, Bland, Boseman, Clodfelter, Cowell, Dannelly, Dorsett, Graham, Holloman, Hoyle, Kerr, Kinnaird, Lucas, Malone, Purcell, Rand, Snow, Soles, Swindell, and Weinstein. |
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Referred to: |
Appropriations/Base Budget. |
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May 22, 2006
A BILL TO BE ENTITLED
AN ACT to modify the current operations and capital appropriations act of 2005, to enact an early reduction in the sales tax rate and an early reduction in the income TAX RATE APPLICABLE TO MOST SMALL BUSINESSES, TO CAP THE VARIABLE WHOLESALE COMPONENT OF THE MOTOR FUEL TAX RATE AT ITS CURRENT RATE, TO INCREASE the minimum wage, and to provide for the financing of construction of psychiatric hospitals and other capital Projects.
The General Assembly of North Carolina enacts:
PART i. INtroduction and title of act
SECTION 1.1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.
SECTION 1.2. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2006."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund FY 2006‑2007
EDUCATION
Community Colleges System Office $ 43,124,642
Department of Public Instruction 129,758,427
University of North Carolina – Board of Governors
Appalachian State University 2,189
East Carolina University
Academic Affairs (1,589,622)
Health Affairs 0
Elizabeth City State University (28,887)
Fayetteville State University 42,675
NC Agricultural and Technical University (223,690)
North Carolina Central University (312)
North Carolina School of the Arts 29,159
North Carolina State University
Academic Affairs (3,908,353)
Agricultural Extension 0
Agricultural Research 65,287
University of North Carolina at Asheville (569,398)
University of North Carolina at Chapel Hill
Academic Affairs (846,370)
Health Affairs (795,501)
Area Health Education Centers 0
University of North Carolina at Charlotte (471,439)
University of North Carolina at Greensboro (1,138)
University of North Carolina at Pembroke (299,992)
University of North Carolina at Wilmington (100,910)
Western Carolina University (735,491)
Winston‑Salem State University 0
General Administration 0
University Institutional Programs 140,629,097
Related Educational Programs 0
North Carolina School of Science and Mathematics 52,250
UNC Hospitals at Chapel Hill 0
Total $ 131,249,554
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary $ (65,275,120)
Division of Aging 3,000,000
Division of Blind Services/Deaf/HH 75,000
Division of Child Development 35,465,513
Division of Education Services 828,548
Division of Facility Services 0
Division of Medical Assistance (149,850,000)
Division of Mental Health 77,589,934
NC Health Choice 0
Division of Public Health 19,085,242
Division of Social Services 12,799,153
Division of Vocational Rehabilitation Services 0
Total $ (66,281,730)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 3,676,261
Department of Commerce
Commerce 20,222,483
Commerce State‑Aid 500,000
NC Biotechnology Center 4,000,000
Rural Economic Development Center (500,000)
Department of Environment and Natural Resources
Environment and Natural Resources 14,895,997
Clean Water Management Trust Fund 0
Department of Labor 613,894
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 33,281,348
Department of Crime Control and Public Safety 3,675,280
Judicial Department 27,095,425
Judicial Department – Indigent Defense 7,483,129
Department of Justice 5,038,339
Department of Juvenile Justice and Delinquency Prevention 2,527,679
GENERAL GOVERNMENT
Department of Administration $ 4,217,236
Office of Administrative Hearings 281,367
Department of State Auditor 38,500
Office of State Controller 0
Department of Cultural Resources
Cultural Resources 5,130,562
Roanoke Island Commission 0
State Board of Elections 989,516
General Assembly 168,346
Office of the Governor
Office of the Governor 100,000
Office of State Budget and Management 409,938
OSBM – Reserve for Special Appropriations 1,353,253
Housing Finance Agency 17,750,000
Department of Insurance
Insurance 142,057
Insurance – Volunteer Safety Workers' Compensation 0
Office of Lieutenant Governor 88,433
Department of Revenue 1,108,392
Department of Secretary of State 553,067
Department of State Treasurer
State Treasurer 281,784
State Treasurer – Retirement for Fire and Rescue Squad Workers 514,000
TRANSPORTATION
Department of Transportation $ 0
RESERVES, ADJUSTMENTS, AND DEBT SERVICE
Reserve for Compensation Increases $ 692,188,373
Reserve for Teachers' and State Employees' Retirement Rate Adjustment 27,107,200
Retirement System Payback 30,000,000
Information Technology Fund 42,087,229
Reserve for Heating and Cooling Assistance 10,000,000
Reserve for Legal Expenses 1,065,710
Trust Fund for MH, DD, SAS, and Bridge Funding Needs 5,000,000
Establish State Emergency Response Fund 20,000,000
Debt Service
General Debt Service (50,000,000)
Federal Reimbursement 0
TOTAL CURRENT OPERATIONS – GENERAL FUND $ 1,170,935,691
general fund availability statement
SECTION 2.2.(a) Section 2.2(a) of S.L. 2005‑276 is repealed. The General Fund availability used in adjusting the 2006‑2007 budget is shown below:
FY 2006‑2007
Unappropriated Balance from FY 2005‑2006 $ 113,386,988
Less: HB 1868 Emergency Appropriation for
Department of Correction (15,000,000)
Projected Reversions from FY 2005‑2006 125,000,000
Projected Over Collections from FY 2005‑2006 1,072,100,000
Year End Unreserved Credit Balance before Earmarkings $ 1,295,486,988
Less: Credit to Savings Reserve Account $ (323,871,747)
Less: Credit to Repairs and Renovations Reserve Account (225,000,000)
Revised Year End Unreserved Credit Balance $ 746,615,241
Revenues Based on Existing Tax Structure $ 16,951,416,000
Nontax Revenues
Investment Income $ 78,700,000
Judicial Fees 168,605,271
Disproportionate Share 100,000,000
Insurance 51,543,813
Other Nontax Revenues 455,382,930
Subtotal Nontax Revenues $ 854,232,014
Total General Fund Availability $ 18,552,263,255
Adjustments to Availability: 2006 Session
Adjustment to Baseline Revenue Forecast $ 698,864,995
Reduce Sales Tax from 4.5% to 4.25% – January 1, 2007 (118,000,000)
Reduce Top Personal Income Tax Rate to 8.0% – January 1, 2007 (28,600,000)
Reserve for Other Tax Reductions (55,100,000)
Reserve for Highway Fund Hold Harmless (17,600,000)
Reserve for Highway Trust Fund Hold Harmless (5,700,000)
Redirect Portion of Alcohol Excise Tax to Mental Health Trust Fund (9,390,000)
Redirect Court of Justice Fee for Legal Service Programs (1,000,000)
Reduce Transfer from Highway Trust Fund (195,176,407)
Subtotal Adjustments to Availability: 2006 Session $ 268,298,588
Revised General Fund Availability for the 2006‑2007 Fiscal Year $ 18,820,561,843
Less: Total General Fund Appropriations
2006‑2007 Fiscal Year (18,820,561,843)
Unappropriated Balance Remaining $ 0
SECTION 2.2.(b) Notwithstanding G.S. 143‑15.2 and G.S. 143‑15.3A, the State Controller shall transfer two hundred twenty‑five million dollars ($225,000,000) from the unreserved credit balance to the Repairs and Renovations Reserve Account on June 30, 2006. This subsection becomes effective June 30, 2006.
SECTION 2.2.(c) Funds transferred under this section to the Repairs and Renovations Reserve Account are appropriated for the 2006‑2007 fiscal year to be used in accordance with G.S. 143‑15.3A.
SECTION 2.2.(d) Section 2.2(e) of S.L. 2005‑276 is repealed effective June 30, 2006.
This subsection becomes effective June 30, 2006
SECTION 2.2.(e) Section 2.2.(f) of S.L. 2005‑276 reads as rewritten:
"SECTION 2.2.(f)
Notwithstanding G.S. 105‑187.9(b)(1), the sum to be transferred
under that subdivision for the 2005‑2006 fiscal year is two hundred
fifty million dollars ($250,000,000) and for the 2006‑2007 fiscal
year is two hundred fifty million dollars ($250,000,000).fifty‑five
million dollars ($55,000,000)."
SECTION 2.2.(f) Pursuant to G.S. 105‑187.9(b)(2), the sum to be transferred under that subdivision for the 2006‑2007 fiscal year is two million four hundred eighty‑six thousand six hundred two dollars ($2,486,602).
SECTION 2.2.(g) The State Treasurer shall transfer funds reserved to hold harmless the Highway Fund and the Highway Trust Fund from the General Fund to the Highway Fund and the Highway Trust Fund only if the variable wholesale component of the motor fuel excise tax rate in G.S. 105-449.80 would, without the imposition of the cap imposed by Section 24.3 of this act, exceed twelve and four-tenths cents (12.4¢) a gallon. A transfer required under this subsection must be made on a monthly basis. The amount to be transferred from the General Fund to the Highway Fund is the difference between the amount of motor fuel excise tax revenue allocated to the Highway Fund under G.S. 105-449.125 for a month and the amount that would have been allocated to it if the variable wholesale component were not capped at twelve and four-tenths cents (12.4¢) a gallon. The total amount transferred to the Highway Fund under this subsection during fiscal year 2006-2007 may not exceed seventeen million six hundred thousand dollars ($17,600,000). The amount to be transferred from the General Fund to the Highway Trust Fund is the difference between the amount of motor fuel excise tax revenue allocated to the Highway Trust Fund under G.S. 105-449.125 for a month and the amount that would have been allocated to it if the variable wholesale component were not capped at twelve and four-tenths cents (12.4¢) a gallon. The total amount transferred to the Highway Trust Fund under this subsection during fiscal year 2006-2007 may not exceed five million seven hundred thousand dollars ($5,700,000).
PART iII. current operations and expansion/highway fund
CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
SECTION 3.1. Appropriations from the Highway Fund of the State for maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the fiscal year ending June 30, 2007, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Fund Appropriations for the 2006‑2007 fiscal year.
Current Operations – Highway Fund 2006‑2007
Department of Transportation
Administration $ (2,500,000)
Division of Highways
Administration 0
Construction 29,439,500
Maintenance 196,018,256
Planning and Research 0
OSHA Program 0
Ferry Operations 1,000,000
State Aid
Municipalities 1,439,500
Public Transportation (14,000,000)
Railroads 3,198,750
Governor's Highway Safety 0
Division of Motor Vehicles 1,886,701
Other State Agencies 13,069,364
Reserves and Transfers 25,279,000
TOTAL $254,831,071
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. The Highway Fund availability used in developing the 2005‑2007 biennial budget is shown below:
Highway Fund Availability Statement 2006‑2007
Beginning Credit Balance 0
Estimated Revenue 1,767,140,000
Estimated Reversions 26,600,000
Total Highway Fund Availability $ 1,793,740,000
PART iv. highway trust fund appropriations
HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 4.1. Appropriations from the Highway Trust Fund of the State for maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the fiscal year ending June 30, 2007, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Trust Fund Appropriations for the 2006‑2007 fiscal year.
Current Operations – Highway Trust Fund 2006‑2007
Intrastate System 97,860,379
Urban Loops 39,570,662
Aid to Municipalities 10,267,836
Secondary Roads 8,987,310
Program Administration 3,180,220
Transfer to General Fund (195,176,407)
Grand Total Current Operations
and Expansion ($35,310,000)
PART V. BLOCK GRANTS
DHHS Block Grants
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2007, 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) $114,625,680
02. Work First County Block Grants 94,653,315
03. County Demonstration Grants 19,598,322
04. Child Protective Services – Child Welfare
Workers for Local DSS 12,452,391
05. Work First – Boys and Girls Clubs 1,500,000
06. Work First – After‑School Services for
At‑Risk Children 2,249,642
07. Work First – After‑School Programs for
At‑Risk Youth in Middle Schools 500,000
08. Adoption Services – Special Children's
Adoption Fund 3,000,000
09. Family Violence Prevention 2,200,000
10. Foster Care 2,000,000
Division of Child Development
11. Subsidized Child Care Program 36,563,266
DHHS Administration
12. Division of Social Services 586,931
13. Office of the Secretary 65,836
14. Office of the Secretary/DIRM – TANF
Automation Projects 592,500
15. Office of the Secretary/DIRM – NC FAST
Implementation 1,800,000
Transfers to Other Block Grants
Division of Child Development
16. Transfer to the Child Care and
Development Fund 81,292,880
Division of Social Services
17. Transfer to Social Services Block Grant for
Department of Juvenile Justice and Delinquency
Prevention – Support Our Students 2,749,642
18. Transfer to Social Services Block Grant for Child
Protective Services – Child Welfare Training in
Counties 2,550,000
19. Transfer to Social Services Block Grant for
Maternity Homes 838,000
20. Transfer to Social Services Block Grant for Teen
Pregnancy Prevention Initiatives 2,500,000
21. Transfer to Social Services Block Grant for County
Departments of Social Services for Children's Services 4,500,000
22. Transfer to Social Services Block Grant for
Foster Care Services 1,181,907
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $388,000,312
SOCIAL SERVICES BLOCK GRANT
Local Program Expenditures
Divisions of Social Services and Aging & Adult
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 238,321
05. Foster Care Services 1,706,063
(Transfer from TANF – $1,181,907)
06. Child Protective Services‑Child Welfare Training
for Counties 2,550,000
(Transfer from TANF)
07. Maternity Homes 838,000
(Transfer from TANF)
08. Local DSS Services for Hurricane Victims 509,272
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/Mental Health Services‑
Child/Developmental Disabilities Program/
Substance Abuse Services‑Adult 3,234,601
Division of Child Development
13. Subsidized Child Care Program 3,150,000
Division of Vocational Rehabilitation
14. Vocational Rehabilitation Services – Easter Seal
Society/UCP 188,263
Office of the Secretary – Office of Economic Opportunity
15. Elderly Supplemental Grant Program 41,302
Division of Public Health
16. Teen Pregnancy Prevention Initiatives 2,500,000
(Transfer from TANF)
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 3,314,114
Division of Facility Services
19. Adult Care Licensure Program 411,897
20. Mental Health Licensure and Certification Program 205,668
DHHS Administration
21. Division of Aging and Adult Services 630,636
22. Division of Social Services 869,058
23. Office of the Secretary/Controller's Office 123,059
24. Office of the Secretary/DIRM 82,009
25. Division of Child Development 15,000
26. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 18,098
27. Division of Facility Services 62,986
28. Office of the Secretary‑NC Inter‑Agency Council
For Coordinating Homeless Programs 250,000
29. Office of the Secretary‑Housing Coalition 100,000
Transfers to Other State Agencies
Department of Administration
30. NC Commission of Indian Affairs In‑Home
Services for the Elderly 203,198
Department of Juvenile Justice and Delinquency Prevention
31. Support Our Students 2,749,642
(Transfer from TANF)
Transfers to Other Block Grants
Division of Public Health
32. Transfer to Preventive Health Services Block Grant for
HIV/STD Prevention and Community Planning 145,819
TOTAL SOCIAL SERVICES BLOCK GRANT $ 64,765,609
LOW‑INCOME ENERGY BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Low Income Energy Assistance Program (LIHEAP) $ 28,684,494
02. Crisis Intervention Program (CIP) 20,831,114
Office of the Secretary – Office of Economic Opportunity
03. Weatherization Program 9,431,545
04. Heating Air Repair & Replacement Program (HARRP) 4,399,042
Local Administration
Division of Social Services
05. County DSS Administration 2,057,992
Office of the Secretary – Office of Economic Opportunity
06. Local Residential Energy Efficiency Service
Providers – Weatherization 257,185
07. Local Residential Energy Efficiency Service
Providers – HARRP 119,955
DHHS Administration
08. Division of Social Services 319,774
09. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 7,146
10. Office of the Secretary/DIRM 245,395
11. Office of the Secretary/Controller's Office 11,211
12. Office of the Secretary/Office of Economic
Opportunity – Weatherization 257,185
13. Office of the Secretary/Office of Economic
Opportunity – HARRP 119,955
Transfers to Other State Agencies
14. Department of Administration –
N.C. State Commission of Indian Affairs 58,455
TOTAL LOW‑INCOME ENERGY BLOCK GRANT $ 66,800,448
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
Local Program Expenditures
Division of Child Development
01. Subsidized Child Care Services $165,102,685
02. Subsidized Child Care Services
(TANF to CCDF) 81,292,880
DHHS Program Expenditures
Division of Child Development
03. Quality and Availability Initiatives 34,951,707
Local Administrations
Division of Child Development
04. Administrative Expenses (Non‑Direct Subsidy
Services Support) 1,849,000
DHHS Administration
05. DCD Administrative Expenses 6,028,354
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $289,224,626
MENTAL HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. Mental Health Services – Adult $ 7,184,481
02. Mental Health Services – Child 3,921,991
03. Comprehensive Treatment Service
Program 1,500,000
Local Administration
04. Division of Mental Health 100,000
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 12,706,472
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
Local Program Expenditures
01. Substance Abuse Services – Adult $ 20,537,390
02. Substance Abuse Treatment Alternative for
Women 8,069,524
03. Substance Abuse – HIV and IV Drug 4,816,378
04. Substance Abuse Prevention – Child 5,835,701
05. Substance Abuse Services – Child 4,940,500
06. Substance Abuse Strengthening Families –
Prevention 851,156
Division of Public Health
07. Risk Reduction Projects 383,980
08. Aid‑to‑Counties 209,576
09. Maternal Health 37,779
DHHS Administration
10. Division of Mental Health 500,000
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 46,181,984
MATERNAL AND CHILD HEALTH BLOCK GRANT
Local Program Expenditures
Division of Public Health
01. Healthy Mothers/Healthy Children 9,359,236
02. Children's Health Services 4,114,216
03. Healthy Beginnings 404,559
04. Maternal Health 397,761
05. Teen Pregnancy Prevention Initiatives 85,710
DHHS Program Expenditures
Division of Public Health
06. Children's Health Services 3,149,826
07. Maternal Health 185,488
08. State Center for Health Statistics 29,432
09. Local Technical Assistance & Training 47,424
10. Injury and Violence Prevention 149,438
11. Office of Minority Health 98,236
12. Special Supplemental Nutrition Program
for Women, Infants, and Children (WIC) 22,856
13. Immunization Program – Vaccine Distribution 414,175
DHHS Administration
14. Division of Public Health Administration 550,681
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 19,009,038
PREVENTIVE HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. NC Statewide Health Promotion $1,755,653
02. Services to Rape Victims 197,112
03. HIV/STD Prevention and Community Planning
(Transfer from Social Services Block Grant) 145,819
DHHS Program Expenditures
04. NC Statewide Health Promotion 431,444
05. Oral Health 114,251
06. Osteoporosis Program 67,593
DHHS Administration
07. Division of Public Health 109,211
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $2,821,083
COMMUNITY SERVICES BLOCK GRANT
Local Program Expenditures
Office of Economic Opportunity – Community Services Block Grant
01. Community Action Agencies $ 15,071,666
02. Limited Purpose Agencies 823,261
DHHS Administration
03. Office of Economic Opportunity 823,261
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 16,718,188
GENERAL PROVISIONS
SECTION 5.1.(b) Information to Be Included in Block Grant Plans. – The Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department, and each plan shall include the following:
(1) A delineation of the proposed allocations by program or activity, including State and federal match requirements.
(2) A delineation of the proposed State and local administrative expenditures.
(3) An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.
(4) A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.
(5) A projection of current year expenditures by program or activity.
(6) A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.
SECTION 5.1.(c) Changes in Federal Fund Availability. – If the Congress of the United States increases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall allocate the increase proportionally across the program and activity appropriations identified for that Block Grant in this section. In allocating an increase in federal fund availability, the Department shall not propose funding for new programs or activities not appropriated in this section or increase State administrative expenditures.
If the Congress of the United States decreases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall reduce State administration by at least the percentage of the reduction in federal funds. After determining the State administration, the remaining reductions shall be allocated proportionately across the program and activity appropriations identified for that Block Grant in this section. In allocating a decrease in federal fund availability, the Department shall not eliminate the funding for a program or activity appropriated in this section unless it is related to the State administration.
Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(d) All changes to the budgeted allocations to the Block Grants administered by the Department of Health and Human Services that are not specifically addressed in this section shall be approved by the Office of State Budget and Management, and a report shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to implementing the changes. All changes to the budgeted allocations to the Block Grant shall be reported immediately to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division. This subsection does not apply to block grant changes caused by legislative salary increases and benefit adjustments.
SECTION 5.1.(e) The Department of Health and Human Services shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division on positions funded from federal Block Grants. The report shall include the following for each Block Grant:
(1) All State positions currently funded through the Block Grant, including permanent, temporary, and time‑limited positions.
(2) Budgeted salary and fringe benefits for each position.
(3) Identify the percentage of Block Grant funds used to fund each position.
The report shall be submitted no later than December 1, 2006.
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF)
SECTION 5.1.(f) The sum of five hundred eighty‑six thousand nine hundred thirty‑one dollars ($586,931) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 5.1.(g) The sum of two million dollars ($2,000,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 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, 2006. 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, 2006, and the county's proportion of the statewide total of the individuals receiving domestic violence services from programs funded by the Council for Women as of July 1, 2006. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
SECTION 5.1.(h) The sum of two million two hundred forty‑nine thousand six hundred forty‑two dollars ($2,249,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to expand after‑school programs and services for at‑risk children. The Department shall develop and implement a grant program to award grants to community‑based programs that demonstrate the ability to reach children at risk of teen pregnancy, school dropout, and gang participation. The Department shall award grants to community‑based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to fund one position within the Division of Social Services to coordinate at‑risk after‑school programs and shall not be used for other State administration.
SECTION 5.1.(i) The sum of twelve million four hundred fifty‑two thousand three hundred ninety‑one dollars ($12,452,391) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2006‑2007 fiscal year for child welfare improvements, shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and postadoption services for eligible families.
SECTION 5.1.(j) The sum of three million dollars ($3,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2006‑2007 fiscal year shall be used in accordance with Section 10.48 of this act. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A‑50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.
SECTION 5.1.(k) The sum of one million eight hundred thousand dollars ($1,800,000) in this section appropriated to the Department of Health and Human Services in the TANF Block Grant for the 2006‑2007 fiscal year shall be used to implement N.C. FAST (North Carolina Families Accessing Services through Technology). The N.C. FAST Program involves the entire automation initiative through which families access services and local departments of social services deliver benefits, supervised by the Department of Health and Human Services, Divisions of Social Services, Aging and Adult Services, Medical Assistance, and Child Development. The statewide automated initiative shall be implemented in compliance with federal regulations in order to ensure federal financial participation in the project. The Department of Health and Human Services shall report on its compliance with this subsection to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division no later than January 1, 2007.
SECTION 5.1.(l) The sum of five hundred thousand dollars ($500,000) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2006‑2007 fiscal year shall be used to expand after‑school programs for at‑risk children attending middle school. The Department shall develop and implement a grant program to award funds to community‑based programs demonstrating the capacity to reach children at risk of teen pregnancy, school dropout, and gang participation. These funds shall not be used for training or administration at the State level. All funds shall be distributed to community‑based programs, focusing on those communities where similar programs do not exist in middle schools.
SECTION 5.1.(m) In implementing the TANF Block Grant, the Department of Health and Human Services shall review policies, programs, and initiatives to ensure that they support men in their role as fathers and strengthen fathers' involvement in their children's lives. The Department shall encourage county departments of social services to ensure their Work First programs emphasize responsible fatherhood and increased participation by noncustodial fathers.
SECTION 5.1.(n) The sum of nineteen million five hundred ninety‑eight thousand three hundred twenty‑two dollars ($19,598,322) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2006‑2007 fiscal year for county demonstration grants shall be used for Work First demonstration projects implemented by county departments of social services. The county demonstration grants may be awarded for up to three years with all projects ending no later than the end of fiscal year 2008‑2009. The purpose of the county demonstration grants is to identify best practices that can be used by counties to improve the work participation rates for TANF recipients. The Division of Social Services is authorized to establish two time‑limited positions to manage the grant award process and monitor the demonstration projects through fiscal year 2008‑2009.
Funding provided under the county demonstration grants shall not be used to supplant local funds and counties shall be required to maintain the current level of effort and funding for the Work First program.
SOCIAL SERVICES BLOCK GRANT
SECTION 5.1.(o) Social Services Block Grant funds appropriated to the North Carolina Inter‑Agency Council for Coordinating Homeless Programs and the North Carolina Housing Coalition are exempt from the provisions of 10A NCAC 71R.0201(3).
SECTION 5.1.(p) The sum of two million seven hundred forty‑nine thousand six hundred forty‑two dollars ($2,749,642) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2006‑2007 fiscal year shall be used to support the existing Support Our Students Program, including gang prevention, and to expand the Program statewide, focusing on low‑income communities in unserved areas. These funds shall not be used for administration of the Program.
SECTION 5.1.(q) The sum of two million five hundred fifty thousand dollars ($2,550,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to support various child welfare training projects as follows:
(1) Provide a regional training center in southeastern North Carolina.
(2) Support the Masters Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.
(3) Provide training for residential child care facilities.
(4) Provide for various other child welfare training initiatives.
SECTION 5.1.(r) The sum of eight hundred thirty‑eight thousand dollars ($838,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services for the 2006‑2007 fiscal year shall be used to purchase services at maternity homes throughout the State.
SECTION 5.1.(s) The sum of one million seven hundred six thousand sixty‑three dollars ($1,706,063) appropriated in this section in the Social Services Block Grant for child caring agencies for the 2006‑2007 fiscal year shall be allocated to the State Private Child Caring Agencies Fund.
SECTION 5.1.(t) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section to the Department of Health and Human Services in the Social Services Block Grant for Boys and Girls Clubs for the 2006‑2007 fiscal year shall be used to make grants for approved programs. The Department of Health and Human Services, in accordance with federal regulations for the use of Social Services Block Grant funds, shall administer a grant program to award funds to the Boys and Girls Clubs across the State in order to implement programs that improve the motivation, performance, and self‑esteem of youths and to implement other initiatives that would be expected to reduce gang participation, school dropout, and teen pregnancy rates. The Department shall encourage and facilitate collaboration between the Boys and Girls Clubs and Support Our Students, Communities in Schools, and similar programs to submit joint applications for the funds if appropriate.
SECTION 5.1.(u) The Department of Health and Human Services is authorized, subject to the approval of the Office of State Budget and Management, to transfer Social Services Block Grant funding allocated for departmental administration between divisions that have received administrative allocations from the Social Services Block Grant.
LOW‑INCOME HOME ENERGY ASSISTANCE PROGRAM
SECTION 5.1.(v) Additional emergency contingency funds received may be allocated for Energy Assistance Payments or Crisis Intervention Payments without prior consultation with the Joint Legislative Commission on Governmental Operations. Additional funds received shall be reported to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division upon notification of the award. The Department of Health and Human Services shall not allocate funds for any activities, including increasing administration, other than assistance payments, without prior consultation with the Joint Legislative Commission on Governmental Operations.
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
SECTION 5.1.(w) The sum of no more than four hundred thousand dollars ($400,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant for the 2006‑2007 fiscal year may be used for the operations of the Medical Child Care Pilot.
SECTION 5.1.(x) Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 5.1.(y) If funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to child care subsidies, unless otherwise prohibited by federal requirements of the grant, in order to use the federal funds fully.
MENTAL HEALTH BLOCK GRANT
SECTION 5.1.(z) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the Mental Health Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2006‑2007 fiscal year, and the sum of four hundred twenty‑two thousand three dollars ($422,003) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to continue a Comprehensive Treatment Services Program for Children in accordance with Section 10.25 of S.L. 2005‑276.
SECTION 5.1.(aa) The Department of Health and Human Services shall contract with the University of North Carolina at Chapel Hill for the purpose of providing psychology student stipends in the amount of fifty thousand dollars ($50,000) for the 2006‑2007 fiscal year. Twenty‑five thousand dollars ($25,000) of this contract shall be paid from the Mental Health Block Grant.
MATERNAL AND CHILD HEALTH BLOCK GRANT
SECTION 5.1.(bb) If federal funds are received under the Maternal and Child Health Block Grant for abstinence education, pursuant to section 912 of Public Law 104‑193 (42 U.S.C. § 710), for the 2006‑2007 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an Abstinence Until Marriage Education Program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C‑81(e1)(4). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.
SECTION 5.1.(cc) The Department of Health and Human Services shall ensure that there will be follow‑up testing in the Newborn Screening Program.
NER BLOCK GRANTS
SECTION 5.2.(a) Appropriations from federal block grant funds are made for fiscal year ending June 30, 2007, according to the following schedule:
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $ 1,000,000
02. Urgent Needs and Contingency 1,000,000
03. Scattered Site Housing 13,200,000
04. Economic Development 8,710,000
05. Community Revitalization 13,500,000
06. State Technical Assistance 450,000
07. Housing Development 2,000,000
08. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT – 2007 Program Year $ 45,000,000
SECTION 5.2.(b) Decreases in Federal Fund Availability. – If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
SECTION 5.2.(c) Increases in Federal Fund Availability for Community Development Block Grant. – Any block grant funds appropriated by the Congress of the United States in addition to the funds specified in this section shall be expended as follows: each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
SECTION 5.2.(d) Limitations on Community Development Block Grant Funds. – Of the funds appropriated in this section for the Community Development Block Grant, the following shall be allocated in each category for each program year: up to one million dollars ($1,000,000) may be used for State Administration; not less than one million dollars ($1,000,000) may be used for Urgent Needs and Contingency; up to thirteen million two hundred thousand dollars ($13,200,000) may be used for Scattered Site Housing; up to eight million seven hundred ten thousand dollars ($8,710,000) may be used for Economic Development, including Urban Redevelopment Grants and Small Business or Entrepreneurial Assistance; not less than thirteen million five hundred thousand dollars ($13,500,000) shall be used for Community Revitalization; up to four hundred fifty thousand dollars ($450,000) may be used for State Technical Assistance; up to two million dollars ($2,000,000) may be used for Housing Development; up to five million one hundred forty thousand dollars ($5,140,000) may be used for Infrastructure. If federal block grant funds are reduced or increased by the Congress of the United States after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (b) or (c) of this section, as applicable.
SECTION 5.2.(e) Increase Capacity for Nonprofit Organizations. – Assistance to nonprofit organizations to increase their capacity to carry out CDBG‑eligible activities in partnership with units of local government is an eligible activity under any program category in accordance with federal regulations. Capacity building grants may be made from funds available within program categories, program income, or unobligated funds.
SECTION 5.2.(f) Department of Commerce Demonstration Grants in Partnership with Rural Economic Development Center, Inc. – The Department of Commerce, in partnership with the Rural Economic Development Center, Inc., shall award up to two million two hundred fifty thousand dollars ($2,250,000) in demonstration grants to local governments in very distressed rural areas of the State. These grants shall be used to address critical infrastructure and entrepreneurial needs and to provide small business assistance.
SECTION 5.2.(g) The Department of Commerce shall consult with the Joint Legislative Commission on Governmental Operations prior to reallocating Community Development Block Grant Funds. Notwithstanding the provisions of this subsection, whenever the Director of the Budget finds that:
(1) A reallocation is required because of an emergency that poses an imminent threat to public health or public safety, the Director of the Budget may authorize the reallocation without consulting the Commission. The Department of Commerce shall report to the Commission on the reallocation no later than 30 days after it was authorized and shall identify in the report the emergency, the type of action taken, and how it was related to the emergency.
(2) The State will lose federal block grant funds or receive less federal block grant funds in the next fiscal year unless a reallocation is made, the Department of Commerce shall provide a written report to the Commission on the proposed reallocation and shall identify the reason that failure to take action will result in the loss of federal funds. If the Commission does not hear the issue within 30 days of receipt of the report, the Department may take the action without consulting the Commission.
PART VI. general provisions
Contingency and Emergency Fund allocations
SECTION 6.1.(a) Section 6.2 of S.L. 2005‑276 is repealed.
SECTION 6.1.(b) Funds in the amount of five million dollars ($5,000,000) for the 2006‑2007 fiscal year are appropriated to the Contingency and Emergency Fund. Except as provided in subsection (c) of this section, these funds shall be expended only as:
(1) Required by a court, Industrial Commission, or administrative hearing officer's order;
(2) Required to call out the national guard; or
(3) Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado, if funds for this purpose are not available in the Reserve for Disaster Expenses as authorized in G.S. 166A.
SECTION 6.1.(c) Up to five hundred thousand dollars ($500,000) may be spent for purposes other than those set out in subsection (b) of this section. Notwithstanding any other provision of law authorizing expenditures from the Contingency and Emergency Fund, no more than five hundred thousand dollars ($500,000) of these funds shall be expended for purposes other than those set out in subsection (b) of this section.
authorization to establish receipt‑supported positions
SECTION 6.2. Notwithstanding G.S. 143‑34.1(a1), a department, institution, or other agency of State government may establish receipt‑supported positions authorized in this act upon approval by the Director of the Budget. The Director, if necessary, may establish a receipt‑supported position pursuant to this section at an annual salary amount different from the salary amount set out in this act if (i) funds are available from the proposed funding source and (ii) the alternative salary amount remains within the established salary range grade identified for the job classification of the affected receipt‑supported position established in this act. The Director shall not change the job classifications or increase the number of receipt‑supported positions specified in this act without prior consultation with the Joint Legislative Commission on Governmental Operations.
Consultation Not Required prior to establishing or increasing fees pursuant to the executive budget act
SECTION 6.3. 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 the Current Operations and Capital Improvements Appropriations Act of 2006 or the Senate Appropriations Committee Report on the Continuation, Expansion and Capital Budgets, which was distributed in the Senate Appropriations and Base Budget Committee and used to explain this act.
no fee increases which the general assembly has rejected
SECTION 6.4. Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑16.7. No fee increases that the General Assembly has rejected.
Notwithstanding any other provision of law, no fee shall be increased if the General Assembly has rejected an increase of that fee for the current fiscal period. For the purpose of this section, the General Assembly has rejected a fee increase when that fee increase is included in a bill which fails a reading, or if the fee increase is included in the version of a bill that passes one house, but the bill is enacted without the fee increase."
State Emergency Response Account
SECTION 6.5.(a) G.S. 166A‑6.01(b)(2) reads as rewritten:
"(b) Disaster Assistance Programs – Type I Disaster. – In the event that a Type I disaster is proclaimed, the Governor may make State funds available for disaster assistance in the disaster area in the form of individual assistance and public assistance as provided in this subsection.
…
(2) Public assistance. – State disaster assistance in the form of public assistance grants may be made available to eligible entities located within the disaster area on the following terms and conditions:
a. Eligible entities shall meet the following qualifications:
1. The eligible entity suffers a minimum of ten thousand dollars ($10,000) in uninsurable losses;
2. The eligible entity
suffers uninsurable losses in an amount equal to or exceeding one‑half
percent (0.5%) one percent (1%) of the annual operating budget;
3. For a state of disaster proclaimed pursuant to G.S. 166A‑6(a) after the deadline established by the Federal Emergency Management Agency pursuant to the Disaster Mitigation Act of 2002, P.L. 106‑390, the eligible entity shall have a hazard mitigation plan approved pursuant to the Stafford Act; and
4. For a state of disaster proclaimed pursuant to G.S. 166A‑6(a) after August 1, 2002, the eligible entity shall be participating in the National Flood Insurance Program in order to receive public assistance for flooding damage.
b. Eligible entities shall be required to provide non‑State matching funds equal to twenty‑five percent (25%) of the eligible costs of the public assistance grant.
c. An eligible entity that receives a public assistance grant pursuant to this subsection may use the grant for the following purposes only:
1. Debris clearance.
2. Emergency protective measures.
3. Roads and bridges.
4. Crisis counseling.
5. Assistance with public transportation needs."
SECTION 6.5.(b) Article 1 of Chapter 166A of the General Statutes is amended by adding a new section to read:
"§ 166A‑6.02. State Emergency Response Account.
(a) Account Established. – There is established a State Emergency Response Account as a reserve in the General Fund. Any funds appropriated to the Account shall remain available for expenditure as provided by this section, unless directed otherwise by the General Assembly.
(b) Purpose of Funds. – The Governor may spend funds from the Account for the following purposes:
(1) To cover the start‑up costs of State Emergency Response Team operations for an emergency that poses an imminent threat of a Type I, Type II, or Type III disaster as defined by G.S. 166A‑6.
(2) To cover the cost of first responders to a Type I, Type II, or Type III disaster and any related supplies and equipment needed by first responders that are not provided for under subdivision (1) of this subsection.
All other types of disaster assistance authorized by G.S. 166A‑6 shall continue to be financed by the funds made available under G.S. 166A‑6.01.
(c) Reporting Requirement. – The Governor shall report to the Joint Legislative Commission on Governmental Operations and to the Chairs of the Appropriations Committees of the Senate and House of Representatives on any expenditures from the State Emergency Response Account no later than 30 days after making the expenditure. The report shall include a description of the emergency and type of action taken."
SECTION 6.5.(c) G.S. 166A‑4(1) reads as rewritten:
"(1)(1a) Disaster.
– An occurrence or imminent threat of widespread or severe damage, injury, or
loss of life or property resulting from any natural or man‑made
accidental, military or paramilitary cause."
SECTION 6.5.(d) G.S. 166A‑4 is amended by adding a new subdivision to read:
"(1) Account. – The State Emergency Response Account established in G.S. 166A‑6.02."
Information Technology Fund Availability Statement
SECTION 6.6. Section 6.13(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 6.13.(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 2005‑2006 FY 2006‑2007
Estimated Unencumbered Balance,
June 30, 2006 $1,120,000
Receipts from Information Technology
Enterprise Fee (G.S. 147‑33.82) $5,000,000 $5,000,000
Transfer from June 30, 2005, Information Technology
Services Internal Service Fund cash balance to
support statewide IT initiatives $5,000,000
Appropriation from General
Fund
$24,375,000
$8,025,000
Appropriation from General Fund $24,375,000 $50,112,229
Total Funds Available
$34,375,000
$13,025,000.
Total Funds Available $34,375,000 $56,232,229."
Information Technology Appropriations
SECTION 6.7. Section 6.14 of S.L. 2005‑276 reads as rewritten:
"SECTION 6.14. Appropriations are made from the Information Technology Fund established in G.S. 147‑33.72H as follows:
Office of Information Technology Services FY 2005‑2006 FY 2006‑2007
To establish two project management assistant
positions and one enterprise licensing position
and to purchase and maintain asset management
software and enterprise licenses. $1,600,000 $1,400,000
To continue existing activities including project
management assistance, security, asset management,
legal support, and legacy system assessment. $5,100,000 $3,300,000
To provide services previously supported by
cross subsidies in the rate structure, including
State portal maintenance, security services,
enterprise identity management, and office
operations. $6,300,000 $5,800,000
To facilitate consolidation of information
technology services in State agencies. $500,000
To establish two attorneys to assist Information
Technology Services (ITS) with complex
information technology procurements. $298,826
Office of State Controller
To initiate replacement
of the State's personnel
and payroll
systems consistent with the analysis
and findings of
the Statewide Business Infra‑
structure study
$20,875,000 $2,525,000
To implement replacement of the State's
human resources and payroll system
with a new system, Building Enterprise
Access for North Carolina's Core
Operations (BEACON)/State Business
Infrastructure Program (SBIP). $20,875,000 $44,313,403
To provide funding to integrate and deploy
the following data warehousing projects as
part of BEACON/SBIP:
(i) Department of Revenue: Guest Worker
Compliance Project.
(ii) Office of StatePersonnel:
Workforce Planning Project.
(iii) Office of the State Auditor:
Business Intelligence Software
and Data Warehousing Project. $1,000,000
Total Appropriation
$34,375,000
$13,025,000
Total Appropriation $34,375,000 $56,112,229
Funds appropriated under this section are subject to the reporting requirement set out in G.S. 147‑33.72H."
review of information technology contracts
SECTION 6.8. G.S. 147‑33.103 reads as rewritten:
"§
147‑33.103. Attorney General contract assistance; rule‑making
authority.assistance; use of private counsel.
(a) At the request of the State Chief Information Officer, the Attorney General shall provide legal advice and services necessary to implement this Part.
(b) Repealed by Session Laws 2004‑129, s. 26, effective July 1, 2004.
(c) The State Chief Information Officer shall retain private counsel to provide legal advice and services and to ensure that the State's interests are protected regarding information technology contracts that obligate the State to expend over five million dollars ($5,000,000) over the life of the contract. The requirements of G.S. 114‑2.3 do not apply to this subsection.
The State Chief Information Officer may use funds from the Information Technology Fund, which is established in G.S. 147‑33.72H, for this purpose."
AMEND CIVIL PENALTY AND FORFEITURE FUND AVAILABILITY
SECTION 6.9.(a) Section 6.37(a) of S. L. 2005‑276 reads as rewritten:
"SECTION 6.37.(a) Availability. – The availability used to support appropriations made in this act from the Civil Penalty and Forfeiture Fund is based upon estimated collections of fines and forfeitures from the agencies and in the amounts listed below:
FY 2005‑2006 FY 2006‑2007
Department of Revenue
$
80,000,000
$ 85,000,000 63,000,000
Department of Transportation $ 15,000,000 $ 15,000,000
Employment Security Commission $ 3,000,000 $ 3,000,000
Department of
Insurance
$
3,000,000
$ 3,000,000 1,000,000
University of North
Carolina
$
5,000,000
$ 5,000,000 3,500,000
Other Agencies
$
14,500,000
$ 14,500,000 10,000,000
Total Funds Available
$
120,500,000 $ 125,500,000 95,500,000"
SECTION 6.9.(b) Section 6.37(b) of S.L. 2005‑276 reads as rewritten:
"SECTION 6.37.(b) Appropriations. – Appropriations are made from the Civil Penalty and Forfeiture Fund for the fiscal biennium ending June 30, 2007, as follows:
2005‑2006 2006‑2007
School Technology Fund $ 18,000,000 $ 18,000,000
State Public School Fund
$
102,500,000 $ 107,500,000 77,500,000
Total
Appropriation
$
120,500,000 $ 125,500,000 95,500,000"
SECTION 6.9.(c) G.S. 115C‑457.2 reads as rewritten:
"§ 115C‑457.2. Remittance of moneys to the Fund.
The clear proceeds of all civil penalties, civil forfeitures, and civil fines that are collected by a State agency and that the General Assembly is authorized to place in a State fund pursuant to Article IX, Section 7(b) of the Constitution shall be remitted to the Office of State Budget and Management by the officer having custody of the funds within 10 days after the close of the calendar month in which the revenues were received or collected. Notwithstanding any other law, all such funds shall be deposited in the Civil Penalty and Forfeiture Fund. The clear proceeds of these funds include the full amount of all civil penalties, civil forfeitures, and civil fines collected under Page 48 Session Law 2005‑276 SL2005‑0276 authority conferred by the State, diminished only by the actual costs of collection, not to exceed twenty percent (20%) of the amount collected. The collection cost percentage to be used by a State agency shall be established and approved by the Office of State Budget and Management on an annual basis based upon the computation of actual collection costs by each agency for the prior fiscal year."
SECTION 6.9.(d) The State Board of Education may use up to five hundred thousand dollars ($500,000) from the State Public School Fund to support the Senior Project initiative. These funds shall be used for training for LEA staff and teachers to implement this graduation requirement which was approved by the State Board of Education in 2004.
funds for enrollment increases
SECTION 6.10. G.S. 143‑11 is amended by adding a new subsection to read:
"(a1) In developing the budget, the Director shall consider the information on student enrollment increases submitted to the Director by the State Board of Education, the State Board of Community Colleges, and the Board of Governors of The University of North Carolina. The Director shall include in the continuation budget the amount the Director proposes to fund for the enrollment increases for public schools, community colleges, and the university system."
Housing Assistance Funds
SECTION 6.11. Section 5.1(c) of S.L. 2005‑1 reads as rewritten:
"SECTION 5.1.(c) The Department of Crime Control and Public Safety shall modify the Crisis Housing Assistance Fund (CHAF) to provide money to persons who do not qualify for CHAF assistance solely because they failed to apply for federal assistance through FEMA or the Small Business Administration's (SBA) Real Property Disaster loan program. The Department shall review these persons' applications for CHAF assistance using the same criteria employed by the SBA to determine eligibility for an SBA Real Property Disaster loan. The applicants shall be eligible for CHAF assistance if it is determined that they would have failed to qualify for assistance under the SBA Real Property disaster loan criteria and that they otherwise meet the criteria for CHAF."
PART vII. PUBLIC SCHOOLS
SECTION 7.1.(a) Effective for the 2006‑2007 school year, the Director of the Budget shall transfer from the Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools funds necessary to implement the teacher salary schedules set out in subsection (b) of this section and for longevity in accordance with subsection (c) of this section, including funds for the employer's retirement and social security contributions for all teachers whose salaries are supported from the State's General Fund.
These funds shall be allocated to individuals according to rules adopted by the State Board of Education.
SECTION 7.1.(b) The following monthly salary schedules shall apply for the 2006‑2007 fiscal year to certified personnel of the public schools who are classified as teachers. The schedule contains 30 steps with each step corresponding to one year of teaching experience.
2006‑2007 Monthly Salary Schedule
"A" Teachers
Years Of Experience "A" Teachers NBPTS Certification
0 $2,851 N/A
1 $2,893 N/A
2 $2,937 N/A
3 $3,093 $3,464
4 $3,233 $3,621
5 $3,367 $3,771
6 $3,496 $3,916
7 $3,600 $4,032
8 $3,648 $4,086
9 $3,697 $4,141
10 $3,747 $4,197
11 $3,796 $4,252
12 $3,847 $4,309
13 $3,898 $4,366
14 $3,951 $4,425
15 $4,005 $4,486
16 $4,060 $4,547
17 $4,115 $4,609
18 $4,174 $4,675
19 $4,232 $4,740
20 $4,290 $4,805
21 $4,352 $4,874
22 $4,413 $4,943
23 $4,479 $5,016
24 $4,543 $5,088
25 $4,608 $5,161
26 $4,674 $5,235
27 $4,742 $5,311
28 $4,813 $5,391
29+ $4,884 $5,470
2006‑2007 Monthly Salary Schedule
"M" Teachers
Years Of Experience "M" Teachers NBPTS Certification
0 $3,136 N/A
1 $3,182 N/A
2 $3,231 N/A
3 $3,402 $3,810
4 $3,556 $3,983
5 $3,704 $4,148
6 $3,846 $4,308
7 $3,960 $4,435
8 $4,013 $4,495
9 $4,067 $4,555
10 $4,122 $4,617
11 $4,176 $4,677
12 $4,232 $4,740
13 $4,288 $4,803
14 $4,346 $4,868
15 $4,406 $4,935
16 $4,466 $5,002
17 $4,527 $5,070
18 $4,591 $5,142
19 $4,655 $5,214
20 $4,719 $5,285
21 $4,787 $5,361
22 $4,854 $5,436
23 $4,927 $5,518
24 $4,997 $5,597
25 $5,069 $5,677
26 $5,141 $5,758
27 $5,216 $5,842
28 $5,294 $5,929
29+ $5,372 $6,017
SECTION 7.1.(c) Annual longevity payments for teachers shall be at the rate of one and one‑half percent (1.5%) of base salary for 10 to 14 years of State service, two and twenty‑five hundredths percent (2.25%) of base salary for 15 to 19 years of State service, three and twenty‑five hundredths percent (3.25%) of base salary for 20 to 24 years of State service, and four and one‑half percent (4.5%) of base salary for 25 or more years of State service. The longevity payment shall be paid in a lump sum once a year.
SECTION 7.1.(d) Certified public schoolteachers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers. Certified public schoolteachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers.
SECTION 7.1.(e) The first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "M" teachers. Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience. Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.
Certified psychologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified psychologists. Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.
SECTION 7.1.(f) Speech pathologists who are certified as speech pathologists at the masters degree level and audiologists who are certified as audiologists at the masters degree level and who are employed in the public schools as speech and language specialists and audiologists shall be paid on the school psychologist salary schedule.
Speech pathologists and audiologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for speech pathologists and audiologists. Speech pathologists and audiologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for speech pathologists and audiologists.
SECTION 7.1.(g) Certified school nurses who are employed in the public schools as nurses shall be paid on the "M" salary schedule.
SECTION 7.1.(h) As used in this section, the term "teacher" shall also include instructional support personnel.
SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 7.2.(a) Effective for the 2006‑2007 school year, the Director of the Budget shall transfer from the Reserve for Compensation Increases funds necessary to implement the salary schedules for school‑based administrators as provided in this section. These funds shall be used for State‑paid employees only.
SECTION 7.2.(b) The base salary schedule for school‑based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2006‑2007 fiscal year, commencing July 1, 2006, is as follows:
2006‑2007
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of Assistant Prin I Prin II Prin III Prin IV
Exp Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,592
5 $3,741
6 $3,884
7 $4,000
8 $4,053 $4,053
9 $4,108 $4,108
10 $4,163 $4,163 $4,218
11 $4,218 $4,218 $4,274
12 $4,274 $4,274 $4,331 $4,389
13 $4,331 $4,331 $4,389 $4,450 $4,511
14 $4,389 $4,389 $4,450 $4,511 $4,572
15 $4,450 $4,450 $4,511 $4,572 $4,637
16 $4,511 $4,511 $4,572 $4,637 $4,702
17 $4,572 $4,572 $4,637 $4,702 $4,766
18 $4,637 $4,637 $4,702 $4,766 $4,835
19 $4,702 $4,702 $4,766 $4,835 $4,903
20 $4,766 $4,766 $4,835 $4,903 $4,976
21 $4,835 $4,835 $4,903 $4,976 $5,047
22 $4,903 $4,903 $4,976 $5,047 $5,120
23 $4,976 $4,976 $5,047 $5,120 $5,192
24 $5,047 $5,047 $5,120 $5,192 $5,268
25 $5,120 $5,120 $5,192 $5,268 $5,347
26 $5,192 $5,192 $5,268 $5,347 $5,426
27 $5,268 $5,268 $5,347 $5,426 $5,535
28 $5,347 $5,347 $5,426 $5,535 $5,646
29 $5,426 $5,426 $5,535 $5,646 $5,759
30 $5,535 $5,535 $5,646 $5,759 $5,874
31 $5,646 $5,646 $5,759 $5,874 $5,991
32 $5,759 $5,874 $5,991 $6,111
33 $5,991 $6,111 $6,233
34 $6,111 $6,233 $6,358
35 $6,358 $6,485
36 $6,485 $6,615
37 $6,747
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of PrinV PrinVI PrinVII PrinVIII
Exp (44‑54) (55‑65) (66‑100) (101+)
0‑14 $4,637
15 $4,702
16 $4,766 $4,835
17 $4,835 $4,903 $5,047
18 $4,903 $4,976 $5,120 $5,192
19 $4,976 $5,047 $5,192 $5,268
20 $5,047 $5,120 $5,268 $5,347
21 $5,120 $5,192 $5,347 $5,426
22 $5,192 $5,268 $5,426 $5,535
23 $5,268 $5,347 $5,535 $5,646
24 $5,347 $5,426 $5,646 $5,759
25 $5,426 $5,535 $5,759 $5,874
26 $5,535 $5,646 $5,874 $5,991
27 $5,646 $5,759 $5,991 $6,111
28 $5,759 $5,874 $6,111 $6,233
29 $5,874 $5,991 $6,233 $6,358
30 $5,991 $6,111 $6,358 $6,485
31 $6,111 $6,233 $6,485 $6,615
32 $6,233 $6,358 $6,615 $6,747
33 $6,358 $6,485 $6,747 $6,882
34 $6,485 $6,615 $6,882 $7,020
35 $6,615 $6,747 $7,020 $7,160
36 $6,747 $6,882 $7,160 $7,303
37 $6,882 $7,020 $7,303 $7,449
38 $7,020 $7,160 $7,449 $7,598
39 $7,303 $7,598 $7,750
40 $7,449 $7,750 $7,905
41 $7,905 $8,063
SECTION 7.2.(c) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, shall be determined in accordance with the following schedule:
Number of Teachers
Classification Supervised
Assistant Principal
Principal I Fewer than 11 Teachers
Principal II 11‑21 Teachers
Principal III 22‑32 Teachers
Principal IV 33‑43 Teachers
Principal V 44‑54 Teachers
Principal VI 55‑65 Teachers
Principal VII 66‑100 Teachers
Principal VIII More than 100 Teachers
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non‑State funds or the principal or teacher assistants.
The beginning classification for principals in alternative schools and in cooperative innovative high school programs shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 7.2.(d) A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal. A principal or assistant principal shall also continue to receive any additional State‑funded percentage increases earned for the 1997‑1998, 1998‑1999, and 1999‑2000 school years for improvement in student performance or maintaining a safe and orderly school.
SECTION 7.2.(e) Principals and assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
SECTION 7.2.(f) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
SECTION 7.2.(g) If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 7.2.(h) Participants in an approved full‑time masters in school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the masters program. For the 2006‑2007 fiscal year and subsequent fiscal years, the stipend shall not exceed the difference between the beginning salary of an assistant principal and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full‑time masters in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.
SECTION 7.2.(i) During the 2006‑2007 fiscal year, the placement on the salary schedule of an administrator with a one‑year provisional assistant principal's certificate shall be at the entry‑level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.
School Administrator I $3,079 $6,012
School Administrator II $3,268 $6,378
School Administrator III $3,468 $6,765
School Administrator IV $3,608 $7,035
School Administrator V $3,753 $7,319
School Administrator VI $3,982 $7,762
School Administrator VII $4,142 $8,075
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee hired on or after July 1, 2006.
SECTION 7.3.(b) The monthly salary ranges that follow apply to public school superintendents for the 2006‑2007 fiscal year, beginning July 1, 2006.
Superintendent I $4,396 $8,566
Superintendent II $4,667 $9,084
Superintendent III $4,952 $9,637
Superintendent IV $5,225 $10,221
Superintendent V $5,578 $10,844
The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.
SECTION 7.3.(c) Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the State Personnel Act.
SECTION 7.3.(d) Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided pursuant to this section. Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for under this section.
SECTION 7.3.(e) The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.
SECTION 7.3.(f) The annual salary increase for all permanent full‑time personnel paid from the Central Office Allotment shall be five percent (5%), commencing July 1, 2006. The State Board of Education shall allocate these funds to local school administrative units. The local boards of education shall establish guidelines for providing salary increases to these personnel.
NONCERTIFIED PERSONNEL SALARY AND FAIR MINIMUM PAY
SECTION 7.4.(a) The annual salary increase for permanent, full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be five percent (5%), commencing July 1, 2006.
SECTION 7.4.(b) Local boards of education shall increase the rates of pay for such employees who were employed for all or part of fiscal year 2005‑2006 and who continue their employment for fiscal year 2006‑2007 by providing an annual salary increase for employees of five percent (5%). For part‑time employees, the pay increase shall be pro rata based on the number of hours worked.
SECTION 7.4.(d) Effective July 1, 2006, permanent full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be paid a minimum salary of at least twenty thousand one hundred twelve dollars ($20,112) per year. Permanent, full‑time employees working on a schedule requiring less than 12 months' service per year and permanent part‑time employees, whose salaries are supported from the State's General Fund, shall be paid the minimum salary pro rata. The fair minimum wage salary adjustment provided by this section shall be calculated and awarded after any across‑the‑board salary increases authorized by this act.
BONUS FOR CERTIFIED PERSONNEL AT THE TOP OF THEIR SALARY SCHEDULES
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
SECTION 7.6.(a) The State Board of Education shall use funds appropriated in this act for State Aid to Local School Administrative Units to provide incentive funding for schools that met or exceeded the projected levels of improvement in student performance during the 2005‑2006 school year, in accordance with the ABCs of Public Education Program. In accordance with State Board of Education policy:
(1) Incentive awards in schools that achieve higher than expected improvements may be up to:
a. One thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be up to:
a. Seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Three hundred seventy‑five dollars ($375.00) for each teacher assistant.
SECTION 7.6.(b) The State Board of Education may use funds appropriated to the State Public School Fund to provide assistance to low‑performing schools.
SECTION 7.7. The State Board of Education shall allocate funds for children with disabilities on the basis of two thousand nine hundred sixty‑six dollars and sixty‑five cents ($2,966.65) per child for a maximum of 172,040 children for the 2006‑2007 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 2006‑2007 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 7.8. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of nine hundred sixty‑one dollars and sixty cents ($961.60) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2006‑2007 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 57,419 children for the 2006‑2007 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.
DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING
SECTION 7.10. Section 7.8 of S.L. 2005‑276 is amended by adding a new subsection to read:
"Section 7.8.(c) Beginning in the 2006‑2007 fiscal year, funds appropriated for disadvantaged student supplemental funding (DSSF) shall be allotted based upon a teacher‑to‑student ratio for the eligible DSSF population using the following formula:
(1) Local education agencies (LEAs) in counties with wealth greater than ninety percent (90%) of the statewide average shall receive one teaching position per 20.5 DSSF population;
(2) LEAs in counties with wealth not less than eighty percent (80%) and not greater than ninety percent (90%) of the statewide average shall receive one teaching position per 20 DSSF population;
(3) LEAs in counties with wealth less than eighty percent (80%) of the statewide average shall receive one teaching position per 19.5 DSSF population;
(4) LEAs receiving DSSF funds in 2005‑2006 shall receive one teaching position per 16 DSSF population. These LEAs shall receive no less than the DSSF amount allotted in 2005‑2006.
For the purpose of this subsection, wealth shall be calculated under the low wealth supplemental formula."
SECTION 7.11. Section 7.32 of S.L. 2005‑276 is amended by adding the following new subsections:
"SECTION 7.32.(e) Enrollment fees and tuition for The University of North Carolina courses in which Learn and Earn students are enrolled are allowable uses of these funds. Tuition costs may include laboratory fees assessed to all students enrolled in the course or a similar course.
SECTION 7.32.(f) Textbooks required for college courses in which Learn and Earn students are enrolled may be purchased with these funds.
SECTION 7.32.(g) Payment of fees from these funds by local school administrative units to partnering community colleges and universities are restricted to technology or course fees. Funds appropriated in this act shall not be used to support the cost of athletic or other student activity or campus fees not required by enrollment in a specific course.
SECTION 7.32.(h) The State Board of Education shall allot funds for university enrollment, tuition and fees, and textbooks on the basis of and after verification of the credit hour enrollment of Learn and Earn students in university courses. The State Board of Education shall allot funds for community college fees and textbooks on the basis of and after verification of the credit hour enrollment of Learn and Earn students in community college courses."
SECTION 7.12.(a) Notwithstanding G.S. 143‑23, the State Board of Education may, in consultation with the Office of Information Technology Services, use funds appropriated in this act for NC WISE to create a maximum of 20 positions and incur expenditures necessary to transfer the maintenance and administration of the NC WISE system from the vendor to the Department of Public Instruction.
SECTION 7.12.(b) The Department of Public Instruction shall report on a quarterly basis to the Joint Legislative Education Oversight Committee on the implementation of the NC WISE project.
SECTION 7.13.(a) Funds in the amount of four million seven hundred sixty‑seven thousand four hundred dollars ($4,767,400) are appropriated to support the selection and hiring of 100 literacy coaches. Coaches will be hired and placed in 100 middle schools or other public schools with an eighth grade class. A site selection process including formal criteria will be developed by the State Board of Education in consultation with the North Carolina Teacher Academy. The site must receive formal approval of the State Board of Education to receive funds for this purpose. Sites prioritized for selection will include representation from a wide demographic and will include, but will not be limited to, feeder schools to Learn and Earn schools, New Schools Project schools, Disadvantaged Student Supplemental Funding (DSSF) districts, or select schools with the lowest tier of reading scores in the most recent three years on end‑of‑grade tests. To be selected, schools must (i) contain an eighth grade class, and (ii) ensure that Literacy Coaches will have no administrative responsibilities in the schools in which they are placed.
SECTION 7.13.(b) National Board for Professional Teaching Standards (NBPTS) certified teachers serving in these positions shall be exempt from the requirements in G.S.115C‑296.2(b)(2)d. and shall remain on the NBPTS teacher salary schedule.
expand LEA access to EDUCATION VALUE ADDED ASSESSMENT SYSTEM (EVAAS)
SECTION 7.14.(a) The State Board of Education shall identify local school administrative units to receive funds for purchasing licenses to EVAAS diagnostic software based on criteria that shall include (i) identified need, (ii) readiness, and (iii) county wealth, as defined in the Low‑Wealth Supplemental Funding Formula. The Board shall identify as many units as possible within funds available for this purpose.
SECTION 7.14.(b) Funds appropriated for EVAAS in the 2005‑2006 fiscal year shall not revert, but shall be carried forward to the 2006‑2007 fiscal year for expenditures for training related to expanding local school administrative units' access to the EVAAS tool. Any such funds not spent by June 30, 2007, shall revert to the General Fund.
SECTION 7.14.(c) This section becomes effective June 30, 2006.
clarify definition: public school capital funds
SECTION 7.15. G.S. 115C‑546.2(d)(2)a. reads as rewritten:
"a. "Effective
county tax rate" means the actual county tax rate rate,
including any countywide supplemental taxes levied for the benefit of public
schools, multiplied by a three‑year weighted average of the most
recent annual sales assessment ratio studies."
NORTH CAROLINA VIRTUAL public SCHOOL
SECTION 7.16.(a) The North Carolina Virtual Public School (NCVPS) program shall report to the State Board of Education and shall maintain an administrative office at the Department of Public Instruction
SECTION 7.16.(b) The Director of NCVPS will ensure that course quality standards are established and met and that all e‑learning opportunities offered by State‑funded entities to public school students are consolidated under the NC Virtual Public School Program, eliminating course duplication. The Director shall report on the proposed consolidation and operating plan for 2007‑2008 to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division no later than January 15, 2007. Consolidation will be completed by June 30, 2007. Notwithstanding G.S 143‑23, the State Board of Education may move funds within the budget to implement the consolidation.
SECTION 7.16.(c) Subsequent to course consolidation, the Director will prioritize e‑learning course offerings for students residing in rural and low‑wealth county LEAs, in order to expand available instructional opportunities. First‑available e‑learning instructional opportunities should include courses required as part of the standard course of study for high school graduation and AP offerings not otherwise available.
SECTION 7.16.(d) The State Board of Education shall develop an allotment formula for funding e‑learning, effective in the 2007‑2008 fiscal year. In developing the formula, the Board shall consider, at a minimum, the following:
(1) The number of students in average daily membership (ADM) projected to enroll in e‑learning,
(2) The projected cost of fees for e‑learning courses,
(3) The extent to which projected enrollment in e‑learning courses affects funding required for other allotments that are based on ADM.
SECTION 7.16.(e) Any funds appropriated in this act for the NCVPS program that are not expended in fiscal year 2006‑2007 shall be carried forward for expenditure in fiscal year 2007‑2008. Any such funds that remain unexpended on June 30, 2008, shall revert to the General Fund.
SECTION 7.17. Notwithstanding G.S. 143‑23, the State Board of Education may use monies from the State Public School Fund in 2006‑2007 only to pay for the additional costs associated with an increased number of registration fees for students enrolling in Distance Education courses.
In preparation for the 2007‑2008 fiscal year, the Office of State Budget and Management is urged to include costs associated with increases in enrollment in Distance Education courses in the continuation budget.
TRANSFER MORE AT FOUR PROGRAM AND OFFICE OF SCHOOL READINESS TO THE DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.18.(a) The More at Four program and the Office of School Readiness are transferred from the Office of the Governor to the Department of Public Instruction effective July 1, 2006. This transfer shall have all of the elements of a Type I transfer, as defined in G.S. 143A‑6. The Office of School Readiness will provide oversight to the More at Four program and other related early childhood and prekindergarten education experiences. An Executive Director for the Office of School Readiness will be appointed by the State Board of Education.
SECTION 7.18.(b) Section 10.67(a) of S.L. 2005‑276 is repealed.
SECTION 7.18.(c) Section 10.67(b) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(b) The
Department of Health and Human Services and the Department of Public
Instruction, with guidance from the Task Force, shall continue the
implementation of the "More at Four" prekindergarten program for at‑risk
four‑year‑olds who are at risk of failure in kindergarten. The
program is available statewide to all counties that choose to participate,
including underserved areas. The goal of the program is to provide quality
prekindergarten services to a greater number of at‑risk children in order
to enhance kindergarten readiness for these children. The program shall be
consistent with standards and assessments established jointly by the Department
of Health and Human Services and the Department of Public Instruction. The
program shall include:
(1) A process and system for identifying children at risk of academic failure.
(2) A process and system for
identifying children who are not being served first priority in formal
early education programs, such as child care, public or private preschools,
Head Start, Early Head Start, early intervention programs, or other such
programs, who demonstrate educational needs, and who are eligible to enter
kindergarten the next school year, as well as children who are underserved.
(3) A curriculum or several
curricula that are research‑based and/or built on sound instructional
theory.recommended by the Task Force. The Task Force will identify and
approve appropriate research‑based curricula. These curricula shall:
(i) focus primarily on oral language and emergent literacy; (ii) engage
children through key experiences and provide background knowledge requisite for
formal learning and successful reading in the early elementary years; (iii)
involve active learning; (iv) promote measurable kindergarten language‑readiness
skills that focus on emergent literacy and mathematical skills; and (v) develop
skills that will prepare children emotionally and socially for kindergarten.
(4) An emphasis on ongoing family involvement with the prekindergarten program.
(5) Evaluation of child
progress through a preassessment and postassessment of children in
the statewide evaluation, as well as ongoing assessment of the children by
teachers.
(6) Guidelines for a system to reimburse local school boards and systems, private child care providers, and other entities willing to establish and provide prekindergarten programs to serve at‑risk children.
(7) A system built upon existing local school boards and systems, private child care providers, and other entities that demonstrate the ability to establish or expand prekindergarten capacity.
(8) A quality‑control
system. Participating providers shall comply with standards and guidelines as
established by the Department of Health and Human Services and the
Department of Public Instruction, and the Task Force. The Department may
use the child care rating system to assist in determining program
participation.
(9) Standards for minimum teacher qualifications. A portion of the classroom sites initially funded shall have at least one teacher who is certified or provisionally certified in birth‑to‑kindergarten education.
(10) A local contribution. Programs must demonstrate that they are accessing resources other than "More at Four".
(11) A system of accountability.
(12) Consideration of the
reallocation of existing funds. In order to maximize current funding and
resources, the Department of Health and Human Services and the
Department of Public Instruction, and the Task Force shall consider the
reallocation of existing funds from State and local programs that provide
prekindergarten‑related care and services."
SECTION 7.18.(d) Section 10.67(c) of S.L. 2005‑276 reads as rewritten:
"SECTION
10.67.(c) The Department of Health and Human Services Department
of Public Instruction shall implement a plan to expand plan for
expansion of the "More at Four" program standards within
existing resources to include four‑ and five‑star‑rated
centers and schools serving four‑year‑olds and develop guidelines
for these programs. The Department shall analyze guidelines for use of the "More
at Four" funds, State subsidy funds, and Smart Start subsidy funds and
devise a complementary plan for administration of funds for all four‑year‑old
classrooms. The "NC Prekindergarten Program Standards"
initiative shall recognize four‑ and five‑star‑rated
centers that choose to apply and meet equivalent "More at Four"
program standards as high quality pre‑k classrooms. Classrooms meeting
these standards shall, have at a minimum, receive curricula and access
to training and workshops for "More at Four" programs. Whenever
expansion slots are available, these classrooms shall have first priority to
receive them.and be considered along with other "More at Four"
programs for T.E.A.C.H. funding. The Department shall ensure that no individual
receives funding from more than one source for the same purpose or activity
during the same funding period. For purposes of this subsection, sources shall
include T.E.A.C.H., W.A.G.E.$., and T.E.A.C.H. Health Insurance programs for
individual recipients.
The "More at Four"
program shall review the number of slots filled by counties on a monthly basis
and shift the unfilled slots to counties with waiting lists. The shifting of
slots shall occur through December 30, 2005, January 31 of each year,
at which time any remaining funds for slots unfilled shall be used to meet the
needs of the waiting list for subsidized child care."
SECTION 7.18.(e) Section 10.67(d) of S.L. 2005‑276 reads as rewritten:
"SECTION
10.67.(d) The Department of Health and Human Services, the Department
of Public Instruction, and the Task Force shall submit a report by February 1,
2006 The Department of Public Instruction shall submit a report by
February 1, 2007, to the Joint Legislative Commission on Governmental
Operations, the Joint Legislative Education Oversight Committee, the Senate
Appropriations Committee on Health and Human Services Education,
the House of Representatives Appropriations Subcommittee on Health and Human
Services Education, and the Fiscal Research Division. This final
report shall include the following:
(1) The number of children participating in the program.
(2) The number of children participating in the program who have never been served in other early education programs, such as child care, public or private preschool, Head Start, Early Head Start, or early intervention programs.
(3) The expected expenditures for the programs and the source of the local match for each grantee.
(4) The location of program sites and the corresponding number of children participating in the program at each site.
(5) Activities
involving Child Find in counties.
(6)(5) A
comprehensive cost analysis of the program, including the cost per child served
by the program.
(7)(6) The plan for
expansion of "More at Four" through existing resources status
of the NC Prekindergarten initiatives as outlined in this section."
SECTION 7.18.(f) Section 10.67(e) of S.L. 2005‑276 reads as rewritten:
"SECTION
10.67.(e) For the 2005‑2006 and the 2006‑2007 fiscal years,
the "More at Four" program shall establish income eligibility
requirements for the program not to exceed seventy‑five percent (75%) of
the State median income to make the program consistent with the child care
subsidy requirements. Up to twenty percent (20%) of children enrolled may
have family incomes in excess of seventy‑five percent (75%) of median
income if they have other designated risk factors."
SECTION 7.18.(g) Section 10.67(f) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(f) The
"More at Four" program funding shall not supplant any funding for
classrooms serving four‑year‑olds as of the 2003‑2004 2005‑2006
fiscal year. Support of existing four‑year‑old classrooms with "More
at Four" program funding shall be permitted when current funding is
eliminated, reduced or redirected as required to meet other specified federal
or State educational mandates."
SECTION 7.18.(h) Section 10.67(g) of S.L. 2005‑276 is repealed.
SECTION 7.18.(i) G.S. 115C‑242(1) reads as rewritten:
"(1) A school bus may be
used for the transportation of pupils enrolled in and employees in the
operation of the school to which such bus is assigned by the superintendent of
the local school administrative unit. Except as otherwise herein provided, such
transportation shall be limited to transportation to and from such school for
the regularly organized school day, and from and to the points designated by
the principal of the school to which such bus is assigned, for the receiving
and discharging of passengers. No pupil or employee shall be so transported
upon any bus other than the bus to which such pupil or employee has been
assigned pursuant to the provisions of this Article: Provided, that children
enrolled in a Headstart program or any More at Four program which is
housed in a building owned and operated by a local school administrative unit
where school is being conducted may be transported on public school buses, and
any additional costs associated with such so long as the contractual
arrangements shall be incurred by the benefitting Head Start or More at Four
program made cause no extra expense to the State: Provided further,
that children with special needs may be transported to and from the nearest
appropriate private school having a special education program approved by the
State Board of Education if the children to be transported are or have been
placed in that program by a local school administrative unit as a result of the
State or the unit's duty to provide such children with a free appropriate public
education."
administrative funding for teaching fellows program
SECTION 7.19.(a) G.S. 115C‑363.23A(f) reads as rewritten:
"(f) All funds appropriated to or otherwise received by the Teaching Fellows Program for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund shall be used for scholarship loans granted under the Teaching Fellows Program. With the prior approval of the General Assembly in the Current Operations Appropriations Act, the revolving fund may also be used for campus and summer program support, and costs related to disbursement of awards and collection of loan repayments.
The Public School Forum, as
administrator for the Teaching Fellows Program, may use up to one hundred
fifty thousand dollars ($150,000) annually eight hundred ten thousand
dollars ($810,000) for the 2006‑2007 fiscal year from the fund
balance for costs associated with administration of the Teaching Fellows Program.
In subsequent fiscal years, this amount shall be increased by the Office of
State Budget and Management as necessary to provide salary increases to Program
employees commensurate with legislative salary increases for State employees."
SECTION 7.19.(b) The additional funding provided for administration of the Teaching Fellows Program in G.S. 115C‑363.23A(f), as rewritten by subsection (a) of this section, shall be used to meet current administrative expenses of the Program, expand minority recruitment initiatives, and expand the Program to up to four additional campuses using a merit‑based selection process developed by the North Carolina Teaching Fellows Commission.
The Teaching Fellows Program shall report to the Joint Legislative Education Oversight Committee by December 1, 2006, on the campuses selected and on the selection process.
REFUND OF LOCAL SALES AND USE TAXES TO A LOCAL SCHOOL ADMINISTRATIVE UNIT
SECTION 7.20.(a) G.S. 105‑467(b) reads as rewritten:
"(b) Exemptions and
Refunds. – The State exemptions and exclusions contained in G.S. 105‑164.13,
the State sales and use tax holiday contained in G.S. 105‑164.13C,
and the State refund provisions contained in G.S. 105‑164.14 apply
to the local sales and use tax authorized to be levied and imposed under this
Article. AExcept as provided in this subsection, a taxing county
may not allow an exemption, exclusion, or refund that is not allowed under the
State sales and use tax. A local school administrative unit and a joint
agency created by interlocal agreement among local school administrative units
pursuant to G.S. 160A‑462 to jointly purchase food service‑related
materials, supplies, and equipment on their behalf is allowed an annual refund
of sales and use taxes paid by it under this Article on direct purchases of
tangible personal property and services, other than electricity and
telecommunications service. Sales and use tax liability indirectly incurred by the
entity on building materials, supplies, fixtures, and equipment that become a
part of or annexed to any building or structure that is owned or leased by the
entity and is being erected, altered, or repaired for use by the entity is
considered a sales or use tax liability incurred on direct purchases by the
entity for the purpose of this subsection. A request for a refund shall be in
writing and shall include any information and documentation required by the
Secretary. A request for a refund is due within six months after the end of the
entity's fiscal year. Refunds applied for more than three years after the due
date are barred."
SECTION 7.20.(b) Section 7.51(c) of S.L. 2005‑276, as amended by Section 7 of S.L. 2005‑345, reads as rewritten:
"SECTION 7.51.(c) Subsection (b) of this section becomes effective July 1, 2006. Notwithstanding the provisions of G.S. 105‑164.44H, for the 2006‑2007 fiscal year, the amount transferred to the State Public School Fund each quarter shall equal one‑fourth of the amount refunded under G.S. 105‑164.14(c)(2b) and (2c) during the 2005‑2006 fiscal year for State sales and use taxes only plus or minus the percentage of that amount by which the total collection of State sales and use tax increased or decreased during the preceding fiscal year. The remainder of this section becomes effective July 1, 2005, and applies to sales made on or after that date."
SECTION 7.20.(c) This section becomes effective July 1, 2005, and applies to sales made on or after that date.
salary SUPPLEMENT for Math and Science Teachers Pilot Program
SECTION 7.21.(a) Funds in the amount of five hundred fifteen thousand one hundred fifteen dollars ($515,115) are appropriated in this act for a pilot program providing for a salary supplement for newly hired teachers (as defined by the State Board of Education) of mathematics or science at the middle or high school level. The State Board of Education shall develop the pilot program and select three local school administrative units to participate in the pilot program. In selecting the units, the Board shall target low‑performing local school administrative units and take geographical diversity into account. Selected local school administrative units shall use salary supplement funds for newly hired teachers at low‑performing schools.
Each of the pilot units shall receive funds to provide for a salary supplement of fifteen thousand dollars ($15,000) to up to 10 newly hired teachers at the middle or high school level who have nonprovisional certification in and are teaching in one or more of the following areas of teacher certification:
(1) Middle grades mathematics,
(2) Middle grades science,
(3) Mathematics (9‑12),
(4) Science (9‑12),
(5) Earth science (9‑12),
(6) Biology (9‑12),
(7) Physics (9‑12), and
(8) Chemistry (9‑12).
SECTION 7.21.(b) In accordance with G.S. 115C‑325 and by way of clarification, it shall not constitute a demotion as that term is defined in G.S. 115C‑325(a)(4) if:
(1) A teacher who receives a salary supplement pursuant to subsection (a) of this section is reassigned to a school at which there is no such salary supplement;
(2) A teacher who receives a salary supplement pursuant to subsection (a) of this section moves to a different local school administrative unit; or
(3) A teacher receives a salary supplement pursuant to subsection (a) of this section and the salary supplement is subsequently discontinued or reduced.
SECTION 7.21.(c) Funds not needed to pay for salary supplements shall revert to the General Fund.
SECTION 7.21.(d) The State Board of Education shall report to the Joint Legislative Education Oversight Committee on the design of the pilot program prior to implementation. The State Board of Education shall report to the Joint Legislative Education Oversight Committee on the implementation of the pilot program by January 15, 2007.
PART VIII. COMMUNITY COLLEGES
SALARIES OF COMMUNITY COLLEGE FACULTY AND PROFESSIONAL STAFF
SECTION 8.1. Section 8.3 of S.L. 2005‑276 is amended by adding a new subsection to read:
"SECTION 8.3.(b1) For the 2006‑2007 school year, the minimum salaries for nine‑month, full‑time, curriculum community college faculty shall be as follows:
Education Level Minimum Salary
2006‑2007
Vocational Diploma/Certificate or Less $31,728
Associate Degree or Equivalent $32,195
Bachelors Degree $34,220
Masters Degree or Education Specialist $36,016
Doctoral Degree $38,607
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members."
use of funds appropriated for isothermal community college
SECTION 8.2. Funds appropriated for composite testing at Isothermal Community College and not used for that purpose may be used to purchase equipment for the Lifelong Learning Center located at Isothermal Community College.
USE OF FUNDS FOR THE COLLEGE INFORMATION SYSTEM PROJECT
SECTION 8.3.(a) Funds appropriated to the Community Colleges System Office for the College Information System Project shall not revert at the end of the 2005‑2006 fiscal year but shall remain available until expended.
SECTION 8.3.(b) Notwithstanding G.S. 143‑23, the Community Colleges System Office may, subject to the approval of the Office of State Budget and Management, in consultation with the Office of Information Technology Services, and after consultation with the Joint Legislative Commission on Governmental Operations, use funds appropriated in this act for the College Information System Project to create a maximum of 20 positions or incur expenditures necessary to transfer the maintenance and administration of the College Information System Project from the vendor to the System Office.
SECTION 8.3.(c) The Community Colleges System Office shall report on a quarterly basis to the Joint Legislative Education Oversight Committee on the implementation of the College Information System Project.
SECTION 8.3.(d) Subsection (a) of this section becomes effective June 30, 2006.
SECTION 8.4.(a) Subject to the approval of the Office of State Budget and Management and cash availability, the North Carolina Community Colleges System Office may carry forward an amount not to exceed ten million dollars ($10,000,000) of the operating funds that were not reverted in fiscal year 2005‑2006 to be reallocated to the State Board of Community Colleges' Equipment Reserve Fund. These funds shall be distributed to colleges consistent with G.S. 115D‑31.
SECTION 8.4.(b) This section becomes effective June 30, 2006.
NC COMMUNITY COLLEGE SYSTEM MAY USE STATE FUNDS IN LIEU OF FEDERAL FUNDS DUE TO FEDERAL MANDATES
SECTION 8.5. Notwithstanding G.S. 143‑23, the Community Colleges System Office may use State literacy funds to fund the State administration of the GED office. Federal funds previously used to support the State administration functions shall be reallocated to the colleges.
REPORT ON THE NCCCS BIONETWORK
SECTION 8.6. The Community Colleges System Office shall report by November 1, 2006, to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division on the implementation of the NCCCS BioNetwork. This report shall include an explanation of the BioNetwork's activities, accomplishments, and expenditures.
STUDY OF NEW AND EXPANDING INDUSTRY TRAINING
SECTION 8.7. The Office of State Budget and Management shall conduct a study to analyze and evaluate the New and Expanding Industry Training program of the North Carolina Community College System. This study shall examine the companies served, the number of times each company has been served, the number of jobs created, the length of time the company has remained in North Carolina after receiving New and Expanding Industry Training funds, and whether the company has maintained employment levels at the same level promised when training was received. The findings of the study shall be reported to the Joint Legislative Education Oversight Committee no later than April 1, 2007.
MATCHING REQUIREMENT FOR BOND FUNDS
SECTION 8.8. Section 3(d) of S.L. 2000‑3 reads as rewritten:
"Section 3.(d) If the
State Board of Community Colleges determines that a community college has not
met its matching requirements by July 1, 2006,2007, with respect
to a capital improvement project for which bond proceeds are allocated in this
act, the Board shall certify that fact to the State Treasurer by October 1, 2006.2007.
All of these bond proceeds with respect to which the Board certifies that the
matching requirement has not been met by July 1, 2006,2007, shall
be placed by the State Treasurer in a special account within the Community
Colleges Bond Fund and shall be used for making grants to community colleges.
Bond proceeds in the special account shall be allocated among the community
colleges in accordance with the following conditions:
(1) The State Board of
Community Colleges shall generate, by October 1, 2006,2007, a
priority ranking of legitimate community college capital improvement needs
using a formula based on objective meaningful factors relevant to capital
needs, including actual and projected enrollment, space requirements, current
capacity, construction costs, and any other factors the State Board considers
relevant.
(2) The State Board of Community Colleges shall provide the State Treasurer a projected allocation of the proceeds in the special account in accordance with this priority ranking, except that:
a. No projected allocation shall be made for a community college that the Board certified in accordance with this subsection had failed to meet a matching requirement.
b. No more than four million dollars ($4,000,000) shall be allocated to a single community college.
c. Funds shall not be allocated for more than one project per community college.
(3) The proceeds of grants made from bond proceeds in the special account shall be allocated and expended for paying the cost of community college capital improvements in accordance with this allocation by the State Board of Community Colleges, to the extent and as provided in this act. The Director of the Budget is empowered, when the Director of the Budget determines it is in the best interest of the State and the North Carolina Community College System to do so, and if the cost of a particular project is less than the projected allocation, to use the excess funds to increase the size of that project or increase the size of any other project itemized in this section, or to increase the amount allocated to a particular community college within the aggregate amount of funds available under this section. The Director of the Budget shall consult with the Advisory Budget Commission and the Joint Legislative Commission on Governmental Operations before making these changes."
community college low‑wealth funding
SECTION 8.9.(a) G.S. 115D‑31.3 is amended by adding a new subsection to read:
"(j) Use of funds in low‑wealth counties. – Funds retained by colleges or distributed to colleges pursuant to this section may be used to supplement local funding for maintenance of plant if the college does not receive maintenance of plant funds pursuant to G.S. 115D‑31.2, and if the county in which the main campus of the community college is located:
(1) Is designated as a Tier 1 or Tier 2 county in accordance with G.S. 105‑129.3;
(2) Had an unemployment rate of at least two percent (2%) above the State average or greater than seven percent (7%), whichever is higher, in the prior calendar year; and
(3) Is a county whose wealth, as calculated under the formula for distributing supplemental funding for schools in low‑wealth counties, is eighty percent (80%) or less of the State average.
Funds may be used for this purpose only after all local funds appropriated for maintenance of plant have been expended."
SECTION 8.9.(b) This section becomes effective June 30, 2006.
PART iX. UNIVERSITIES
UNC‑NCCCS 2+2 E‑Learning Initiative
SECTION 9.1. The University of North Carolina and Community Colleges System Office shall report by September 1, 2006, to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division of the General Assembly on the implementation of the UNC‑NCCCS 2+2 E‑Learning Initiative. This report shall include:
(1) The courses and programs within the 2+2 E‑Learning Initiative;
(2) The total number of prospective teachers that have taken or are taking part in this initiative to date broken down by the current academic period and each of the previous academic periods since the program's inception;
(3) The total number of teachers currently in the State's classroom, by local school administrative unit, who have taken part in this initiative;
(4) The change in the number of teachers available to schools since the program's inception;
(5) The qualitative data from students, teachers, local school administrative unit personnel, university personnel, and community college personnel as to the impact of this initiative on our State's teaching pool; and
(6) An explanation of the expenditures and collaborative programs between the North Carolina Community College System and The University of North Carolina, including recommendations for improvement.
teacher education program enrollment plans
SECTION 9.2. The University of North Carolina Board of Governors' Task Force on Meeting Teacher Supply and Demand called for the President to develop a plan for enrollment growth in the University System's teacher education programs to respond to the State's shortage of teachers. In a presentation to the Joint Legislative Education Oversight Committee and to the Board of Governors, a commitment was made to increase the number of teacher education graduates. The University of North Carolina General Administration shall obtain plans from each constituent institution as to how they will maintain their current enrollment in the teacher education programs and achieve their growth targets to ensure such increases in those programs occur. Plans may include using enrollment growth funds for targeted admissions, enhanced student support, and advising, recruiting, increases in faculty in necessary instructional areas that lead to certification, and other methods General Administration believes will achieve those results. The University of North Carolina General Administration shall report back to the Office of State Budget and Management and the Joint Legislative Education Oversight Committee no later than December 30, 2006, on each constituent institution's plan. No later than March 31, 2007, The University of North Carolina General Administration shall submit a report on progress towards meeting this priority for the 2007‑2008 academic year, based on each constituent institution's current students in the education programs, and the students who have been accepted for the 2007‑2008 fiscal year who are enrolling in the education programs. The report shall also explain the distribution of enrollment growth funds by specific initiative.
North Carolina in the World Project
SECTION 9.3. In collaboration with the State Board of Education and the NC Department of Commerce, the NC Center for International Understanding shall develop a plan to ensure that public K‑12 international education efforts such as teacher and student exchanges, curriculum development, and other initiatives for students, teachers, and administrators are focused on key countries and regions of strategic economic interest to North Carolina. The NC Center for International Understanding shall report to the Office of State Budget and Management and the Joint Legislative Education Oversight Committee on the activities and accomplishments of the two hundred thousand dollar ($200,000) nonrecurring appropriation for North Carolina in the World Project no later than March 31, 2007.
Study the feasibility of Adding North Carolina Wesleyan College To UNC System
SECTION 9.4.(a) The Board of Governors of The University of North Carolina shall study the feasibility of making North Carolina Wesleyan College a constituent institution of The University of North Carolina. The study shall include all of the following:
(1) Mission. – The Board of Governors shall evaluate the potential missions of the campus that would meet the academic and economic needs of the region, the State, and of the University System. The Board of Governors shall take into account the need to avoid duplication of curriculum and programs at other campuses, particularly those within the same geographic area, unless the need for duplication is warranted. The Board of Governors shall seek recommendations, suggestions, and comments from community leaders, educational experts, and business leaders in defining the mission of the new campus. Particular focus shall be placed on utilizing the campus in a manner that addresses both the economic and educational challenges of the region in a unique and focused manner, such as in the areas of science, technology, education, and economic development.
(2) Cost. – The Board of Governors shall analyze the potential operating costs of the campus. Factors such as the mission, staff and faculty salaries, benefits, total faculty and staff levels, total projected student enrollment, facility needs, and tuition rates shall be taken into account.
(3) Facility Needs. – The Board of Governors shall consider what additional facility needs there may be, taking into account the proposed mission of the campus. Examples of those needs may be lab facility upgrades, new buildings to house an expanded student population, and associated infrastructure expansion.
(4) Asset Transfer. – The Board of Governors shall obtain legal and financial analyses to determine if there are any restrictions attached to any of the College's assets (title to property, gifts to endowment, assets purchased with restricted grant funds, etc.) that would prohibit the transfer of the assets to the State. If there are restrictions, then the analyses shall also include the steps necessary to lift the restrictions and the costs of obtaining a clear title.
(5) Liability Analysis. – The Board of Governors shall also obtain a legal analysis to determine whether there are pending liabilities against the campus or reasonably foreseeable future liabilities against the campus. If there are such liabilities, the legal analysis shall also address the action needed to avoid transfer of any liability to the State.
(6) Transition of Current Students/Programs. – The Board of Governors shall consider how best to handle the transition of the currently enrolled student population, both on and off campus, into continuing or new curriculum programs during the conversion period.
(7) Personnel. – The Board of Governors shall assess the employment status of current personnel to determine what, if any, contractual and other employment issues may arise in the conversion.
(8) Legislative Action. – The Board of Governors shall determine the legislative action and statutory amendments needed to authorize and implement the conversion.
SECTION 9.4.(b) Of the funds available to the Board of Governors of The University of North Carolina, the sum of fifty thousand dollars ($50,000) for the 2006‑2007 fiscal year shall be used to conduct the study required by this act.
SECTION 9.5.(a) G.S. 143B‑372.1 reads as rewritten:
"§ 143B‑372.1. North Carolina Progress Board.
(a) The North Carolina Progress Board is established. The Board shall be located administratively in the Board of Governors of The University of North Carolina and may be located at any constituent institution within The University of North Carolina, or at any institution to which it is invited formally, but shall exercise all its prescribed statutory powers independently of the Board of Governors or the institution at which it resides.
(b) The North Carolina Progress Board shall consist of 24 members of statewide prominence as follows:
(1) The Governor,
ex officio;
(2) Eight Six persons
appointed by the Governor, none of whom shall be State employees or officers;
(3) Five Six persons
appointed by the Speaker of the House of Representatives, two of whom shall be
members of the House of Representatives;
(4) Five Six persons
appointed by the President Pro Tempore of the Senate, two of whom shall be
members of the Senate; and
(5) Five Six persons
appointed by the North Carolina Progress Board.
(c) The Governor or the
Governor's designee shall be chair of the North Carolina Progress Board. The
Governor Progress Board shall appoint elect a vice‑chair
chair from among the membership of the North Carolina Progress
Board to serve at the pleasure of the Governor. Progress Board. The
North Carolina Progress Board may elect such other any officers
as it sees fit.
(d) The North Carolina Progress Board shall meet at least twice annually on the call of the chair or as additionally provided by the North Carolina Progress Board. A quorum is 12 members of the Board. Members may not send designees to board meetings, nor may they vote by proxy.
(e) Board appointments shall be for terms to begin July 1, 1999, with subsequent appointments to be made as terms expire or resignations occur. Of the Governor's appointments, two shall be for one‑year terms, two shall be for two‑year terms, two shall be for three‑year terms, and two shall be for four‑year terms. Of the appointments made by the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the North Carolina Progress Board, one member appointed by each shall be appointed for a one‑year term, one member appointed by each shall be appointed for a two‑year term, one member appointed by each shall be appointed for a three‑year term, and two members appointed by each shall be appointed for a four‑year term. As terms expire, successors shall be appointed for four‑year terms.
(d1) Effective July 1, 2006, the initial term for the additional member appointed by the Speaker of the House of Representatives to the North Carolina Progress Board shall be for a four‑year term to begin on July 1, 2006, and the initial term for the additional member appointed by the President Pro Tempore of the Senate to the North Carolina Progress Board shall be for a four‑year term to begin on July 1, 2006. The Governor shall not appoint any members on July 1, 2006, for four‑year terms.
(f) No member may be appointed to more than two consecutive terms. A member of the House of Representatives appointed by the Speaker of the House vacates membership on the North Carolina Progress Board when that person is no longer a member of the House of Representatives, except that if that person is in office at the expiration of the term of office in the House of Representatives but has not been elected to the next term, that person shall continue to serve until the convening of the regular session. A member of the Senate appointed by the President Pro Tempore of the Senate vacates membership on the North Carolina Progress Board when that person is no longer a member of the Senate, except that if that person is in office at the expiration of the term of office in the Senate but has not been elected to the next term, that person shall continue to serve until the convening of the regular session."
SECTION 9.5.(b) G.S. 143B‑372.3 reads as rewritten:
"§ 143B‑372.3. Staff.
(a) Upon the
recommendation of the Board, the Governor The Progress Board or its
supporting nonprofit entity shall appoint an Executive Director who
shall serve at the pleasure of the Board and the Governor but, for administrative
purposes, shall report to the Board of Governors of The University of North
Carolina. The Executive Director shall report to the North Carolina Progress
Board and the Governor. The Executive Director shall hire or contract with
support staff, who shall work at the pleasure of the Executive Director.staff
and obtain any other resources and take any other actions reasonably required
to fulfill the duties of the Progress Board as set forth in G.S. 143B‑372.2.
(b) The Office of State Budget and Management shall also provide support, information, reports, and other assistance to the North Carolina Progress Board as requested.
(c) Repealed by Session Laws 1999‑237, s. 10.12(a)."
Graduate Nurse Scholarship Program for Faculty Production
SECTION 9.6. Article 9H of Chapter 90 of the General Statutes is amended by adding the following new sections to read:
"§ 90‑171.95. Graduate Nurse Scholarship Program for Faculty Production established; administration.
(a) There is established the Graduate Nurse Scholarship Program for Faculty Production. The North Carolina Nursing Scholars Commission shall determine selection criteria, methods of selection, and shall select recipients of scholarship loans made under the Graduate Nurse Scholarship Program for Faculty Production.
(b) The Graduate Nurse Scholarship Program for Faculty Production shall be used to provide the following:
(1) A scholarship loan for up to two years in the amount of fifteen thousand dollars ($15,000) per year, per recipient, to students enrolled in a masters degree program in nursing education or any other area of the nursing field that would permit them to become a nursing instructor at a North Carolina community college or university.
(2) A scholarship loan for up to three years in the amount of fifteen thousand dollars ($15,000) per year, per recipient, to students enrolled in a doctoral degree program in nursing education or any other area of the nursing field that would permit them to become a nursing instructor at a North Carolina community college or university.
The State Education Assistance Authority shall adopt specific rules to regulate these scholarship loans.
(b1) If a recipient is awarded a scholarship loan under this program and is enrolled, or accepted for enrollment, in an eligible program, but is unable to pursue the course of study in nursing for a semester due to limited faculty resources at the institution for that semester, then the recipient shall continue to receive the scholarship loan for that semester and shall not be required to forfeit or repay the scholarship loan for that semester, provided that the recipient remains otherwise eligible for the program. This waiver shall be valid for only one semester of study and may extend a recipient's eligibility for funding under the program by no more than one semester.
(c) The Commission shall adopt stringent standards, which may include minimum grade point average, scholastic aptitude test scores, and other standards deemed appropriate by the Commission, to ensure that only the best potential students receive loans under the Graduate Nurse Scholarship Program for Faculty Production. Standards adopted by the Commission shall include provisions for ensuring that the qualifications of applicants who are or would be nontraditional students are considered fairly in providing them with opportunities to compete for the loans. Loans under the Graduate Nurse Scholarship Program for Faculty Production shall be awarded only to applicants who meet the standards set by the Commission and who agree to teach in a North Carolina public nursing program upon completion of the nursing education program supported by the loan.
(d) The Commission shall develop and administer the Graduate Nurse Scholarship Program for Faculty Production in cooperation with nursing schools at institutions approved by the Commission and the North Carolina Board of Nursing. The Graduate Nurse Scholarship Program for Faculty Production shall provide for participants to be exposed to a range of extracurricular activities while in school, which activities shall be aimed at instilling in students a strong motivation to remain in the practice of nursing education and to provide leadership for the nursing profession.
(e) The Commission may form regional review committees to assist it in identifying the best high school seniors and other applicants for the program. The Commission and the review committees shall make an effort to identify and encourage minority students and students who may not otherwise consider a career in nursing to apply for the Graduate Nurse Scholarship Program for Faculty Production.
(f) Upon the naming of recipients of loans from the Graduate Nurse Scholarship Program for Faculty Production, the Commission shall inform the State Education Assistance Authority (SEAA) of its decisions. The SEAA shall perform all of the administrative functions necessary to implement this Article, which functions shall include: rulemaking, dissemination of information to the public, distribution and receipt of applications for scholarship loans, and the functions necessary for the execution, payment, and enforcement of promissory notes required under this Article.
"§ 90‑171.96. Terms of loans; receipt and disbursement of funds.
(a) All scholarship loans shall be evidenced by notes made payable to the State Education Assistance Authority that bear interest at the rate of ten percent (10%) per year beginning 90 days after completion of the nursing education program, or 90 days after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated upon the recipient's withdrawal from school or by the recipient's failure to meet the standards set by the Commission.
(b) The State Education Assistance Authority shall forgive the loan if, within seven years after graduation from a nursing education program, the recipient teaches in a public nursing education program in a public educational institution in North Carolina for one year for every year a scholarship loan was provided. If the recipient repays the scholarship loan by cash payments, all indebtedness shall be repaid within 10 years. The Authority may provide for accelerated repayment and for less than full‑time employment options to encourage the practice of nursing education in either geographic or nursing specialty shortage areas. The Authority shall adopt specific rules to designate these geographic areas and these nursing specialty shortage areas, upon recommendations of the North Carolina Center for Nursing. The North Carolina Center for Nursing shall base its recommendations on objective information provided by interested groups or agencies and upon objective information collected by the Center. The Authority may forgive the scholarship loan if it determines that it is impossible for the recipient to teach in a public nursing program in North Carolina for a sufficient time to repay the loan because of the death or permanent disability of the recipient within 10 years following graduation or termination of enrollment in a nursing education program.
(c) All funds appropriated to or otherwise received by the Graduate Nurse Scholarship Program for Faculty Production for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund may be used only for scholarship loans granted under the Graduate Nurse Scholarship Program for Faculty Production."
Management Flexibility to Reorganize Budget Code 16012 UNC Board of Governors Related Educational Programs
SECTION 9.7. Notwithstanding G.S. 143‑23, for the 2006‑2007 fiscal year, the General Administration of The University of North Carolina and the State Educational Assistance Authority shall, with the approval of the Office of State Budget and Management, reorganize budget code 16012, UNC Board of Governors Related Educational Programs, so that the budget reflects and segregates each specific program individually. The Office of State Budget and Management shall work with The University of North Carolina General Administration and the State Educational Assistance Authority to ensure that each program represented in code 16012 is identified and budgeted separately.
SECTION 9.8. G.S. 116‑30.2(a) reads as rewritten:
"(a) All General Fund appropriations made by the General Assembly for continuing operations of a special responsibility constituent institution of The University of North Carolina shall be made in the form of a single sum to each budget code of the institution for each year of the fiscal period for which the appropriations are being made. Notwithstanding G.S. 143‑23(a1), G.S. 143‑23(a2), and G.S. 120‑76(8), each special responsibility constituent institution may expend monies from the overhead receipts special fund budget code and the General Fund monies so appropriated to it in the manner deemed by the Chancellor to be calculated to maintain and advance the programs and services of the institutions, consistent with the directives and policies of the Board of Governors. Special responsibility constituent institutions may transfer appropriations between budget codes. These transfers shall be considered certified even if as a result of agreements between special responsibility constituent institutions. The preparation, presentation, and review of General Fund budget requests of special responsibility constituent institutions shall be conducted in the same manner as are requests of other constituent institutions. The quarterly allotment procedure established pursuant to G.S. 143‑17 shall apply to the General Fund appropriations made for the current operations of each special responsibility constituent institution. All General Fund monies so appropriated to each special responsibility constituent institution shall be recorded, reported, and audited in the same manner as are General Fund appropriations to other constituent institutions."
Nursing Scholars Program Modification
SECTION 9.9.(a) G.S. 90‑171.61 reads as rewritten:
"§ 90‑171.61. Nursing Scholars Program established; administration.
(a) There is established the Nursing Scholars Program. The North Carolina Nursing Scholars Commission shall determine selection criteria, methods of selection, and shall select recipients of scholarship loans made under the Nursing Scholars Program.
(b) The Nursing Scholars Program shall be used to provide the following:
(1) A four‑year
scholarship loanScholarship loans in the amountamounts of
up to of five thousand dollars ($5,000)six thousand five hundred
dollars ($6,500) per year, for each scholarship of no more than four
years per recipient, to North Carolina high school seniors or other
personsresidents interested in preparing to become a
registered nurse nurses through a associate or
baccalaureate degree program.programs or through diploma programs.
(2) A two‑year
scholarship loan in the amount of three thousand dollars ($3,000) per year, per
recipient, to persons interested in preparing to be a registered nurse through
an associate degree nursing program or a diploma nursing program.
(3) A two‑year
scholarship loan in the amount of three thousand dollars ($3,000) per year, per
recipient, for two years of baccalaureate nursing study for college juniors or
community college graduates interested in preparing to be a registered nurse.
(4) A two‑year
scholarship loan of three thousand dollars ($3,000) per year, per recipient,
for two years of baccalaureate study in nursing for registered nurses who do
not hold a baccalaureate degree in nursing.
(5) A two‑year
scholarship loanScholarship loans of six thousand five hundred
dollars ($6,000)($6,500) per year, per recipient, for two years
of study leading to a master of science in nursing degree for people residents
already holding a baccalaureate degree in nursing.
In addition to theawarding
scholarship loans awarded pursuant to subdivisions (1) through and
(5) of this subsection, the Commission may award pro rata scholarship loans to
recipients enrolled at least half‑time in study to become registered
nurses or to attain a master of science in nursing degree.in study
leading to a master of science in nursing degree who already hold a
baccalaureate degree in nursing and to recipients enrolled at least half‑time
in study leading to a baccalaureate degree in nursing who already are licensed
as registered nurses. In awarding all scholarship loans, the Commission
shall give priority to full‑time students over part‑time students.
The State Education Assistance Authority shall adopt specific rules to regulate
scholarship loans to part‑time master of science in nursing students
and part‑time baccalaureate degree students.students.
Within current funds available or
with any additional funds provided by the General Assembly for this purpose,
the Commission may set aside slots for scholarship loans prescribed by subdivisions
(1) and (2) subdivision (1) of this subsection to enable licensed
practical nurses to become registered nurses. The State Education Assistance
Authority shall adopt specific rules to regulate these scholarship loans.
(b1) If a recipient is awarded a scholarship loan under this program and is enrolled, or accepted for enrollment, in a baccalaureate nursing program, but is unable to pursue the course of study in nursing for a semester due to limited faculty resources at the institution for that semester, then the recipient shall continue to receive the scholarship loan for that semester and shall not be required to forfeit or repay the scholarship loan for that semester provided that the recipient remains otherwise eligible for the program. This waiver shall be valid for only one semester of study and may extend a recipient's eligibility for funding under the program by no more than one semester.
(c) The Commission shall adopt stringent standards, which may include minimum grade point average, scholastic aptitude test scores, and other standards deemed appropriate by the Commission, to ensure that only the best potential students receive and retain loans under the Nursing Scholars Program. Standards adopted by the Commission shall include provisions for ensuring that the qualifications of applicants who are or would be nontraditional students are considered fairly in providing them with opportunities to compete for the loans. Loans under the Nursing Scholars Program shall be awarded only to applicants who meet the standards set by the Commission and who agree to practice nursing in North Carolina upon completion of the nursing education program supported by the loan.
(d) The Commission shall develop and administer the Nursing Scholars Program in cooperation with nursing schools at institutions approved by the Commission and the North Carolina Board of Nursing. The Nursing Scholars Program shall provide for participants to be exposed to a range of extracurricular activities while in school, which activities shall be aimed at instilling in students a strong motivation to remain in the practice of nursing and to provide leadership for the nursing profession.
(e) The Commission may form regional review committees within North Carolina to assist it in identifying the best high school seniors and other applicants for the program. The Commission and the review committees shall make an effort to identify and encourage minority students and students who may not otherwise consider a career in nursing to apply for the Nursing Scholars Program.
(f) Upon the naming of recipients of loans from the Nursing Scholars Program, the Commission shall inform the State Education Assistance Authority (SEAA) of its decisions. The SEAA shall perform all of the administrative functions necessary to implement this Article, which functions shall include: rule‑making, dissemination of information to the public, distribution and receipt of applications for scholarship loans, and the functions necessary for the execution, payment, and enforcement of promissory notes required under this Article."
SECTION 9.9.(b) This section applies to all scholarship loans awarded or renewed on or after July 1, 2006.
UNC Board of Governors Medical and Dental Scholarships
SECTION 9.10.(a) Section 9.9(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 9.9.(a) The current Board of Governors' Dental Scholarship Program, under the purview of the Board of Governors of The University of North Carolina, shall make any awards to students admitted after July 1, 2005, as scholarship loan awards. The Board of Governors' Dental Scholarship Program is administered by the Board of Governors of The University of North Carolina. The Board of Governors' Dental Scholarship Program shall be used to provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers for first‑year students, required dental equipment, and an annual payment of five thousand dollars ($5,000) per year to students who have been accepted for admission to the School of Dentistry at the University of North Carolina at Chapel Hill. The Board may adopt standards, including minimum grade point average and DAT scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program. All scholarship loans shall be evidenced by notes made payable to the Board that shall bear interest at the rate of ten percent (10%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Board. The Board shall forgive the loan if, within seven years after graduation, the recipient practices dentistry in North Carolina for four years. An extension of the seven‑year period for satisfaction of the service requirements for the scholarship loan may be granted subject to the approval on the finding of extenuating circumstances by the State Education Assistance Authority. Such extenuating circumstances may include, but are not be limited to, participation in a dental residency program. The Board shall also forgive the loan if it finds that it is impossible for the recipient to practice dentistry in North Carolina for four years, within seven years after graduation, because of the death or permanent disability of the recipient. All unused funds appropriated to or otherwise received by the Board for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds shall revert to the General Fund at the end of each fiscal year."
SECTION 9.10.(b) Section 9.10(a) reads as rewritten:
"SECTION 9.10.(a) The current Board of Governors' Medical Scholarship Program, under the purview of the Board of Governors of The University of North Carolina, shall make any awards to students admitted after July 1, 2005, as scholarship loan awards. The Board of Governors' Medical Scholarship Program is administered by the Board of Governors of The University of North Carolina. The Board of Governors' Medical Scholarship Program shall be used to provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers, and an annual payment of five thousand dollars ($5,000) per year to students who have been accepted for admission to either Duke University School of Medicine, Brody School of Medicine at East Carolina University, the University of North Carolina at Chapel Hill School of Medicine, or the Wake Forest University School of Medicine. The Board may adopt standards, including minimum grade point average and MCAT scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program. All scholarship loans shall be evidenced by notes made payable to the Board that shall bear interest at the rate of ten percent (10%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Board. The Board shall forgive the loan if, within seven years after graduation, the recipient practices medicine in North Carolina for four years. An extension of the seven‑year period for satisfaction of the service requirements of the scholarship loan may be granted subject to the approval of the State Education Assistance Authority. Such extenuating circumstances may include, but not be limited to, participation in a medical residency program. The Board shall also forgive the loan if it finds that it is impossible for the recipient to practice medicine in North Carolina for four years, within seven years after graduation, because of the death or permanent disability of the recipient. All unused funds appropriated to or otherwise received by the Board for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds shall revert to the General Fund at the end of each fiscal year."
SECTION 9.10.(c) This section is effective when it becomes law and applies to all scholarship loans issued after July 1, 2005.
NC School of Science and Math/High School Constituent Institution
SECTION 9.11.(a) G.S. 116‑2 reads as rewritten:
"§ 116‑2. Definitions.
As used in this Article, unless the context clearly indicates a contrary intent:
(1) "Board" means the Board of Governors of the University of North Carolina.
(2) "Board of trustees" means the board of trustees of a constituent institution.
(3) "Chancellor" means the chancellor of a constituent institution.
(4) "Constituent
institution" or "institution" means one of the 16 public senior
institutions, institutions of higher education, to wit, the
University of North Carolina at Chapel Hill, North Carolina State University at
Raleigh, the University of North Carolina at Greensboro, the University of
North Carolina at Charlotte, the University of North Carolina at Asheville, the
University of North Carolina at Wilmington, Appalachian State University, East
Carolina University, Elizabeth City State University, Fayetteville State
University, North Carolina Agricultural and Technical State University, North
Carolina Central University, North Carolina School of the Arts, Pembroke State
University, redesignated effective July 1, 1996, as the "University of
North Carolina at Pembroke", Western Carolina University, and Winston‑Salem
State University.University, and the constituent high school, the
North Carolina School of Science and Mathematics.
(5) "President" means the President of the University of North Carolina.
(6) "Vending facilities" has the same meaning as it does in G.S. 143‑12.1."
SECTION 9.11.(b) G.S. 116‑4 reads as rewritten:
"§ 116‑4. Constituent institutions of the University of North Carolina.
On July 1, 1972, the The
University of North Carolina shall be composed of the following institutions:institutions
of higher education: the University of North Carolina at Chapel Hill, North
Carolina State University at Raleigh, the University of North Carolina at
Greensboro, the University of North Carolina at Charlotte, the University of
North Carolina at Asheville, the University of North Carolina at Wilmington,
Appalachian State University, East Carolina University, Elizabeth City State
University, Fayetteville State University, North Carolina Agricultural and
Technical State University, North Carolina Central University, North Carolina
School of the Arts, Pembroke State University, redesignated effective July 1,
1996, as the "University of North Carolina at Pembroke", Western
Carolina University and Winston‑Salem State University.University,
and the constituent high School, the North Carolina School of Science and
Mathematics."
SECTION 9.11.(c) G.S. 116‑12 reads as rewritten:
"§ 116‑12. Property and obligations.
All property of whatsoever kind and all rights and privileges held by the Board of Higher Education and by the Boards of Trustees of Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, North Carolina Agricultural and Technical State University, North Carolina Central University, North Carolina School of the Arts, Pembroke State University, redesignated effective July 1, 1996, as the "University of North Carolina at Pembroke", Western Carolina University and Winston‑Salem State University, as said property, rights and privileges may exist immediately prior to July 1, 1972, shall be, and hereby are, effective July 1, 1972, transferred to and vested in the Board of Governors of the University of North Carolina. All obligations of whatsoever kind of the Board of Higher Education and of the Boards of Trustees of Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, North Carolina Agricultural and Technical State University, North Carolina Central University, North Carolina School of the Arts, Pembroke State University, redesignated effective July 1, 1996, as the "University of North Carolina at Pembroke", Western Carolina University and Winston‑Salem State University, as said obligations may exist immediately prior to July 1, 1972, shall be, and the same hereby are, effective July 1, 1972, transferred to and assumed by the Board of Governors of the University of North Carolina. Any property, real or personal, held immediately prior to July 1, 1972, by a board of trustees of a constituent institution for the benefit of that institution or by the University of North Carolina for the benefit of any one or more of its six institutions, shall from and after July 1, 1972, be kept separate and distinct from other property held by the Board of Governors, shall continue to be held for the benefit of the institution or institutions that were previously the beneficiaries and shall continue to be held subject to the provisions of the respective instruments, grants or other means or process by which any property right was acquired. All property of whatsoever kind and all rights and privileges held by the Board of Trustees of the North Carolina School of Science and Mathematics, as said property, rights and privileges may exist immediately prior to July 1, 2007, shall be and hereby are, effective July 1, 2007, transferred to and vested in the Board of Governors of The University of North Carolina. All obligations of whatsoever kind of the Board of Trustees of the North Carolina School of Science and Mathematics as said obligations may exist immediately prior to July 1, 2007, shall be, and the same hereby are, effective July 1, 2007, transferred to and assumed by the Board of Governors of The University of North Carolina. In case a conflict arises as to which property, rights or privileges were held for the beneficial interest of a particular institution, or as to the extent to which such property, rights or privileges were so held, the Board of Governors shall determine the issue, and the determination of the Board shall constitute final administrative action. Nothing in this Article shall be deemed to increase or diminish the income, other revenue or specific property which is pledged, or otherwise hypothecated, for the security or liquidation of any obligations, it being the intent that the Board of Governors shall assume said obligations without thereby either enlarging or diminishing the rights of the holders thereof."
SECTION 9.11.(d) G.S. 116‑17 reads as rewritten:
"§ 116‑17. Purchase of annuity or retirement income contracts for faculty members, officers and employees.
Notwithstanding any provision of
law relating to salaries and/or salary schedules for the pay of faculty
members, administrative officers, or any other employees of universities, colleges
colleges, constituent institutions, and other institutions of
higher learning as named and set forth in this Article, and other State
agencies qualified as educational institutions under section 501(c)(3) of the
United States Internal Revenue Code, the governing boards of any such
universities, colleges colleges, constituent institutions, and other
institutions of higher learning may authorize the business officer or agent of
same to enter into annual contracts with any of the faculty members,
administrative officers and employees of said institutions of higher
learning which provide for a reduction in salary below the total
established compensation or salary schedule for a term of one year. The
financial officer or agent shall use the funds derived from the reduction in
the salary of the faculty member, administrative officer or employee to
purchase a nonforfeitable annuity or retirement income contract for the benefit
of said faculty member, administrative officer or employee of said
universities, colleges and institutions of higher learning.institutions.
A faculty member, administrative officer or employee who has agreed to a salary
reduction for this purpose shall not have the right to receive the amount of
the salary reduction in cash or in any other way except the annuity or
retirement income contract. Funds used for the purchase of an annuity or
retirement income contract shall not be in lieu of any amount earned by the
faculty member, administrative officer or employee before his election for a
salary reduction has become effective. The agreement for salary reductions
referred to herein shall be effected under any necessary regulations and
procedures adopted by the various governing boards of the various institutions of
higher learning and on forms prepared by said governing boards.
Notwithstanding any other provision of this section or law, the amount by which
the salary of any faculty member, administrative officer or employee is reduced
pursuant to this section shall not be excluded, but shall be included, in
computing and making payroll deductions for social security and retirement
system purposes, and in computing and providing matching funds for retirement
system purposes.
In lieu of the annuity and related contracts provided for under this section, interests in custodial accounts pursuant to Section 401(f), Section 403(b)(7), and related sections of the Internal Revenue Code of 1986 as amended may be purchased for the benefit of qualified employees under this section with the funds derived from the reduction in the salaries of such employees."
SECTION 9.11.(e) The catch line of G.S. 116‑30.2 reads as rewritten:
"§
116‑30.2. Appropriations to special responsibility constituent institutions
and to the North Carolina School of Science and Mathematics.institutions."
SECTION 9.11.(f) G.S. 116‑30.2(b) is repealed.
SECTION 9.11.(g) G.S. 116‑31(d) reads as rewritten:
"(d) Effective Except
as provided in G.S. 116‑65, effective July 1, 1973, each of the
16 constituent institutions of higher education set out in G.S. 116‑2(4)
shall have board of trustees composed of 13 persons chosen as follows:
(1) Eight elected by the Board of Governors,
(2) Four appointed by the Governor, and
(3) The president of the student government ex officio.
The Board of Trustees of the North Carolina School of Science and Mathematics shall be established in accordance with G.S. 116‑233."
SECTION 9.11.(h) G.S. 116‑40.22(c) reads as rewritten:
"(c) Tuition and Fees. – Notwithstanding any provision in Chapter 116 of the General Statutes to the contrary, in addition to any tuition and fees set by the Board of Governors pursuant to G.S. 116‑11(7), the Board of Trustees of the institution may recommend to the Board of Governors tuition and fees for program‑specific and institution‑specific needs at that institution without regard to whether an emergency situation exists and not inconsistent with the actions of the General Assembly. The institution shall retain any tuition and fees set pursuant to this subsection for use by the institution. Notwithstanding this subsection, neither the Board of Governors of The University of North Carolina nor its Board of Trustees shall impose any tuition or mandatory fee at the North Carolina School of Science and Mathematics without the approval of the General Assembly."
SECTION 9.11.(i) G.S. 116‑143 reads as rewritten:
"§ 116‑143. State‑supported institutions of higher education required to charge tuition and fees.
The Board of Governors of the The
University of North Carolina shall fix the tuition and fees, not inconsistent
with actions of the General Assembly, at the institutions of higher
education enumerated in G.S. 116‑4 in such amount or amounts as
it may deem best, taking into consideration the nature of each institution and
program of study and the cost of equipment and maintenance; and each
institution shall charge and collect from each student, at the beginning of
each semester or quarter, tuition, fees, and an amount sufficient to pay other
expenses for the term.
In the event that said students are unable to pay the cost of tuition and required academic fees as the same may become due, in cash, the said several boards of trustees are hereby authorized and empowered, in their discretion, to accept the obligation of the student or students together with such collateral or security as they may deem necessary and proper, it being the purpose of this Article that all students in State institutions of higher learning shall be required to pay tuition, and that free tuition is hereby abolished. Notwithstanding this section, neither the Board of Governors of The University of North Carolina nor its Board of Trustees shall impose any tuition or mandatory fee at the North Carolina School of Science and Mathematics without the approval of the General Assembly.
Inasmuch as the giving of tuition
and fee waivers, or especially reduced rates, represent in effect a variety of
scholarship awards, the said practice is hereby prohibited except when
expressly authorized by statute or by the Board of Governors of the The
University of North Carolina; and, furthermore, it is hereby directed and
required that all budgeted funds expended for scholarships of any type must be
clearly identified in budget reports.
Notwithstanding the above
provision relating to the abolition of free tuition, the Board of Governors of the
The University of North Carolina may, in its discretion, provide
regulations under which a full‑time faculty member of the rank of full‑time
instructor or above, and any full‑time staff member of the The
University of North Carolina may during the period of normal employment enroll
for not more than one course per semester in the The University
of North Carolina free of charge for tuition, provided such enrollment does not
interfere with normal employment obligations and further provided that such
enrollments are not counted for the purpose of receiving general fund
appropriations."
SECTION 9.11.(j) G.S. 116‑230.1 reads as rewritten:
"§ 116‑230.1. Policy.
It is hereby declared to be the policy of the State to foster, encourage, promote, and provide assistance in the development of skills and careers in science and mathematics among the people of the State."
SECTION 9.11.(k) G.S. 116‑231 reads as rewritten:
"§
116‑231. Reestablishment of the North Carolina School of Science and
Mathematics as an Affiliated Schoola Constituent High School of
The University of North Carolina.
The North Carolina School of
Science and Mathematics is hereby reestablished, as an affiliateda
constituent high school of The University of North Carolina, and shall be
governed by the Board of Governors as prescribed in this Chapter and a
Board of Trustees as prescribed in this Article."
SECTION 9.11.(l) G.S. 116‑232 reads as rewritten:
"§ 116‑232. Purposes.
The purposes of the School shall
be to foster the educational development of North Carolina high school students
who are academically talented in the areas of science and mathematics and show
promise of exceptional development and global leadership through
participation in a residential educational setting emphasizing instruction in
the areas of science and mathematics; to develop, evaluate, and disseminate
experimental instructional programs; and to serve all schools of the State
through research and outreach activities.and to provide instruction,
methods, and curricula designed to improve teaching and learning in North
Carolina and the nation with an emphasis on distance education and programs that
expand pathways for students into careers in science and mathematics."
SECTION 9.11.(m) The introductory language of G.S. 116‑233(a) reads as rewritten:
"(a) There Notwithstanding
the provisions of G.S. 116‑31(d), there shall be a Board of
Trustees of the School, which shall consist of 27 members as follows:
…"
SECTION 9.11.(n) G.S. 116‑234 reads as rewritten:
"§ 116‑234. Board of Trustees; meetings; rules of procedure; officers.
(a) The Board of Trustees
shall meet at least four three times a year and may hold special
meetings at any time, at the call of the chairman or upon petition addressed to
the chairman by at least four of the members of the Board.
(b) The Notwithstanding
the provisions of G.S. 116‑32, the Board of Trustees shall elect
a chairman and a vice‑chairman; no ex officio member may hold such an
office.
(c) The Board of Trustees shall determine its own rules of procedure and may delegate to such committees as it may create such of its powers as it deems appropriate.
(d) Members of the Board of Trustees, other than ex officio members under G.S. 116‑233(a)(3), shall receive such per diem compensation and necessary travel and subsistence expenses while engaged in the discharge of their official duties as is provided by law for members of State boards and commissions. Ex officio members under G.S. 116‑233(a)(3) shall be reimbursed for travel expenses as provided by G.S. 138‑6."
SECTION 9.11.(o) The catch line of G.S. 116‑235 reads as rewritten:
"§ 116‑235. Board of Trustees; additional powers and duties."
SECTION 9.11.(p) G.S. 116‑235 is amended by adding a new subsection to read:
"(a) In addition to the powers enumerated in Chapter 116, Article I, Part 3, the Board of Trustees shall have the powers and duties set out in this section."
SECTION 9.11.(q) G.S. 116‑235(a) reads as rewritten:
"(a)(a1) Academic
Program. –
(1) The Board of Trustees shall establish the standard course of study for the School. This course of study shall set forth the subjects to be taught in each grade and the texts and other educational materials on each subject to be used in each grade.
(2) The Board of Trustees shall adopt regulations governing class size, the instructional calendar, the length of the instructional day, and the number of instructional days in each term."
SECTION 9.11.(r) G.S. 116‑235(b) reads as rewritten:
"(b) Students. –
(1) Admission of Students. –
The School shall admit students in accordance with criteria, standards, and
procedures established by the Board of Trustees. To be eligible to be
considered for admission, an applicant must be either a legal resident of the
State, as defined by G.S. 116‑143.1(a)(1), or a student whose parent
is an active duty member of the armed services, as defined by G.S. 116‑143.3(2),
who is abiding in this State incident to active military duty at the time the
application is submitted, provided the student shares the abode of that parent;
eligibility to remain enrolled in the School shall terminate at the end of any
school year during which a student becomes a nonresident of the State. The
Board of Trustees shall ensure, insofar as possible without jeopardizing
admission standards, that an equal number of qualified rising high school
juniorsapplicants is admitted to the program and to the residential
summer institutes in science and mathematics from each of North Carolina's
congressional districts. In no event shall the differences in the number of rising
high school juniorsqualified applicants offered admission to the
program from each of North Carolina's congressional districts be more than two
and one‑half percentage points from the average number per district who
are offered admission.
(2) School Attendance. –
Every parent, guardian, or other person in this State having charge or control
of a child who is enrolled in the School and who is less than 16 years of age
shall cause such child to attend school continuously for a period equal to the
time which the School shall be in session. No person shall encourage, entice,
or counsel any child to be unlawfully absent from the School. Any person who
aids or abets a student's unlawful absence from the School shall, upon
conviction, be guilty of a Class 1 misdemeanor. The Director Chancellor
of the School shall be responsible for implementing such additional policies
concerning compulsory attendance as shall be adopted by the Board of Trustees,
including regulations concerning lawful and unlawful absences, permissible
excuses for temporary absences, maintenance of attendance records, and
attendance counseling.
(3) Student Discipline. –
Rules of conduct governing students of the School shall be established by the
Board of Trustees. The Director,Chancellor, other administrative
officers, and all teachers, substitute teachers, voluntary teachers, teacher
aides and assistants, and student teachers in the School may use reasonable
force in the exercise of lawful authority to restrain or correct pupils and
maintain order.
SECTION 9.11.(s) G.S. 116‑235(c) through G.S. 116‑235(h) is repealed.
SECTION 9.11.(t) G.S. 116‑236 is repealed.
SECTION 9.11.(u) G.S. 116‑237 is repealed.
SECTION 9.11.(v) G.S. 116‑238 is repealed
SECTION 9.11.(w) G.S.66‑58(c)(3) reads as rewritten:
"(c) The provisions of subsection (a) shall not prohibit:
…
(3) The business operation of
endowment funds established for the purpose of producing income for educational
purposes; for purposes of this section, the phrase "operation of endowment
funds" shall include the operation by public postsecondary educationalconstituent
institutions of The University of North Carolina of campus stores, the
profits from which are used exclusively for awarding scholarships to defray the
expenses of students attending the institution; provided, that the operation of
the stores must be approved by the board of trustees of the institution, and
the merchandise sold shall be limited to educational materials and supplies,
gift items and miscellaneous personal‑use articles. Provided further
that, notwithstanding this subsection, profits from a campus store operated by
the endowment of the North Carolina School of Science and Mathematics are used
exclusively for student activities, athletics, and other programs to enhance
student life. Provided further that sales at campus stores are limited to
employees of the institution and members of their immediate families, to duly
enrolled students of the campus at which a campus store is located and their
immediate families, to duly enrolled students of other campuses of the
University of North Carolina other than the campus at which the campus store is
located, to other campus stores and to other persons who are on campus other
than for the purpose of purchasing merchandise from campus stores. It is the intent
of this subdivision that campus stores be established and operated for the
purpose of assuring the availability of merchandise described in this Article
for sale to persons enumerated herein and not for the purpose of competing with
stores operated in the communities surrounding the campuses of the University of North Carolina."
SECTION 9.11.(x) G.S. 66‑58(g) is repealed.
SECTION 9.11.(y) G.S. 126‑5(c1)(8) reads as rewritten:
"(c1) Except as to the provisions of Articles 6 and 7 of this Chapter, the provisions of this Chapter shall not apply to:
…
(8) Instructional and
research staff, physicians, and dentists of The University of North Carolina.Carolina,
including the faculty of the North Carolina School of Science and Mathematics.
…"
SECTION 9.11.(z) G.S. 126‑5(c1)(11) is repealed.
SECTION 9.11.(aa) The catch line of G.S. 135‑5.1 reads as rewritten:
"§
135‑5.1. Optional retirement program for State institutions of higher
education.The University of North Carolina."
SECTION 9.11.(bb) G.S. 135‑5.1(a) reads as rewritten:
"(a) An Optional
Retirement Program provided for in this section is authorized and established
and shall be implemented by the Board of Governors of The University of North
Carolina. The Optional Retirement Program shall be underwritten by the purchase
of annuity contracts, which may be both fixed and variable contracts or a
combination thereof, or financed through the establishment of a trust, for the
benefit of participants in the Program. Participation in the Optional
Retirement Program shall be limited to university University
personnel who are eligible for membership in the Teachers' and State Employees'
Retirement Program and who are:
(1) Administrators and faculty of The University of North Carolina with the rank of instructor or above;
(2) The President and employees of The University of North Carolina who are appointed by the Board of Governors on recommendation of the President pursuant to G.S. 116‑11(4), 116‑11(5), and 116‑14 or who are appointed by the Board of Trustees of a constituent institution of The University of North Carolina upon the recommendation of the Chancellor pursuant to G.S. 116‑40.22(b);
(3) Nonfaculty instructional
and research staff who are exempt from the State Personnel Act, as defined by
the provisions of G.S. 126‑5(c1)(8);126‑5(c1)(8),
and the faculty of the North Carolina School of Science and Mathematics;
and
(4) Field faculty of the Cooperative Agriculture Extension Service, and tenure track faculty in North Carolina State University agriculture research programs who are exempt from the State Personnel Act and who are eligible for membership in the Teachers' and State Employees' Retirement System pursuant to G.S. 135‑3(1), who in any of the cases described in this subsection (i) had been members of the Optional Retirement Program under the provisions of Chapter 338, Session Laws of 1971, immediately prior to July 1, 1985, or (ii) have sought membership as required in subsection (b), below. Under the Optional Retirement Program, the State and the participant shall contribute, to the extent authorized or required, toward the purchase of such contracts or deposited in such trust on the participant's behalf."
SECTION 9.11.(cc) G.S. 143‑597(a) is amended by adding a new subdivision to read:
"(7) The North Carolina School of Science and Mathematics."
SECTION 9.11.(dd) This section becomes effective July 1, 2007. Subsection (bb) of this section applies only to eligible persons who are employees as of July 1, 2007, or who are employed thereafter.
Expand Tuition Waiver Program for UNC Faculty & Staff
SECTION 9.12. G.S. 116‑143 reads as rewritten:
"§ 116‑143. State‑supported institutions of higher education required to charge tuition and fees.
(a) The Board of Governors of the University of North Carolina shall fix the tuition and fees, not inconsistent with actions of the General Assembly, at the institutions enumerated in G.S. 116‑4 in such amount or amounts as it may deem best, taking into consideration the nature of each institution and program of study and the cost of equipment and maintenance; and each institution shall charge and collect from each student, at the beginning of each semester or quarter, tuition, fees, and an amount sufficient to pay other expenses for the term.
(b) In the event that said students are unable to pay the cost of tuition and required academic fees as the same may become due, in cash, the said several boards of trustees are hereby authorized and empowered, in their discretion, to accept the obligation of the student or students together with such collateral or security as they may deem necessary and proper, it being the purpose of this Article that all students in State institutions of higher learning shall be required to pay tuition, and that free tuition is hereby abolished.
(c) Inasmuch as the giving of tuition and fee waivers, or especially reduced rates, represent in effect a variety of scholarship awards, the said practice is hereby prohibited except when expressly authorized by statute or by the Board of Governors of the University of North Carolina; and, furthermore, it is hereby directed and required that all budgeted funds expended for scholarships of any type must be clearly identified in budget reports.
(d) Notwithstanding
the above provision relating to the abolition of free tuition, the Board of
Governors of the University of North Carolina may, in its discretion, provide
regulations under which a full‑time faculty member of the rank of full‑time
instructor or above, and any full‑time staff member of the University of
North Carolina may during the period of normal employment enroll for not more
than one course three courses per semester year in
the University of North Carolina free of charge for tuition, provided such
enrollment does not interfere with normal employment obligations and further
provided that such enrollments are not counted for the purpose of receiving
general fund appropriations."
Tuition and Contractual Grants for Teaching/Nursing
SECTION 9.13.(a) G.S. 116‑19 reads as rewritten:
"§
116‑19. Contracts with private institutions to aid North Carolina students;students
and licensure students; reporting requirement.
(a) In order to encourage
and assist private institutions to continue to educate North Carolina students,students
and licensure students, the State Education Assistance Authority may enter
into contracts with the institutions under the terms of which an institution
receiving any funds that may be appropriated pursuant to this section would
agree that, during any fiscal year in which such funds were received, the
institution would provide and administer scholarship funds for needy North
Carolina students and licensure students in an amount at least equal to
the amount paid to the institution, pursuant to this section, during the fiscal
year. Under the terms of the contracts the State Education Assistance Authority
would agree to pay to the institutions, subject to the availability of funds, a
fixed sum of money for each North Carolina student and licensure student enrolled
at the institutions for the regular academic year, said sum to be determined by
appropriations that might be made from time to time by the General Assembly
pursuant to this section. Funds appropriated pursuant to this section shall be
paid by the State Education Assistance Authority to an institution on
certification of the institution showing the number of North Carolina students and
licensure students enrolled at the institution as of October 1 of any year
for which funds may be appropriated. For purposes of this subsection, "needy
North Carolina students"students and licensure students"
are those eligible students and licensure students who have financial
need as determined by the institution under the institutional methodology or
the federal methodology as defined by the State Education Assistance Authority.
For purposes of this subsection, "institutional methodology" means a
need‑analysis formula, developed by College Scholarship Service, that
determines the student's and or licensure student's and his or her family's
capacity to pay for postsecondary education each year.
(b) The State Education Assistance Authority shall document the number of full‑time equivalent North Carolina undergraduate students and full‑time and less than full‑time licensure students that are enrolled in off‑campus programs and the State funds collected by each institution pursuant to G.S. 116‑19 for those students. The State Education Assistance Authority shall also document the number of scholarships and the amount of the scholarships that are awarded under G.S. 116‑19 to students and licensure students enrolled in off‑campus programs. An "off‑campus program" is any program offered for degree credit away from the institution's main permanent campus.
The State Education Assistance Authority shall include in its annual report to the Joint Legislative Education Oversight Committee the information it has compiled and its findings regarding this program."
SECTION 9.13.(b) G.S. 116‑20 reads as rewritten:
"§ 116‑20. Scholarship and contract terms; base period.
In order to encourage and assist private institutions to educate additional numbers of North Carolinians, the Board of Governors of the University of North Carolina is hereby authorized to enter into contracts within the institutions under the terms of which an institution receiving any funds that may be appropriated pursuant to this section would agree that, during any fiscal year in which such funds were received, the institution would provide and administer scholarship funds for needy North Carolina students and licensure students in an amount at least equal to the amount paid to the institution, pursuant to this section, during the fiscal year. Under the terms of the contracts the Board of Governors of the University of North Carolina would agree to pay to the institutions, subject to the availability of funds, a fixed sum of money for each North Carolina student and licensure student enrolled as of October 1 of any year for which appropriated funds may be available, over and above the number of North Carolina students enrolled in that institution as of October 1, 1997, which shall be the base date for the purpose of this calculation. Funds appropriated pursuant to this section shall be paid by the State Education Assistance Authority to an institution upon recommendation of the Board of Governors of the University of North Carolina and on certification of the institution showing the number of North Carolina students and licensure students enrolled at the institution as of October 1 of any year for which funds may be appropriated over the number enrolled on the base date. In the event funds are appropriated for expenditure pursuant to this section and funds are also appropriated, for the same fiscal year, for expenditure pursuant to G.S. 116‑19, students and licensure students who are enrolled at an institution in excess of the number enrolled on the base date may be counted under this section for the purpose of calculating the amount to be paid to the institution, but the same students and licensure students may also be counted under G.S. 116‑19, for the purpose of calculating payment to be made under that section."
SECTION 9.13.(c) G.S. 116‑21.1 reads as rewritten:
"§ 116‑21.1. Financial aid for North Carolina students and licensure students attending private institutions of higher education in North Carolina.
(a) Funds shall be appropriated each fiscal year in the Current Operations Appropriations Act to the Board of Governors of The University of North Carolina for aid to institutions and shall be disbursed in accordance with the provisions of G.S. 116‑19, 116‑21, and 116‑22.
(b) The funds appropriated in compliance with this section shall be placed in a separate, identifiable account in each eligible institution's budget or chart of accounts. All funds in the account shall be provided as scholarship funds for needy North Carolina students and licensure students during the fiscal year. Each student and licensure student awarded a scholarship from this account shall be notified of the source of the funds and of the amount of the award. Funds not utilized under G.S. 116‑19 shall be available for the tuition grant program as defined in G.S. 116‑21.2."
SECTION 9.13.(d) 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) 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 students persons
attending these institutions, there is granted to each full‑time
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 full‑time
undergraduate student as provided by this subsection.
(a1) 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 licensure student who is enrolled less than full‑time 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.
(b) The tuition grants
provided for in this section shall be administered by the State Education
Assistance Authority pursuant to rules adopted by the State Education
Assistance Authority not inconsistent with this section. The State Education
Assistance Authority shall not approve any grant until it receives proper
certification from an approved institution that the student or licensure
student applying for the grant is an eligible student.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.student or licensure
student.
(c) In Except as
provided in subsection (a1) of this section, in the event a student on
whose behalf a grant has been paid is not enrolled and carrying a minimum academic
load as of the tenth classroom day following the beginning of the school term
for which the grant was paid, the institution shall refund the full amount of
the grant to the State Education Assistance Authority. If a licensure
student on whose behalf a prorated grant has been paid in accordance with
subsection (a1) of this section is not enrolled 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. 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 the students.them.
(d) In the event there are
not sufficient funds to provide each eligible student or licensure student
with a full grant: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) (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) Any remaining funds shall revert to the General Fund."
SECTION 9.13.(e) G.S. 116‑21.3 reads as rewritten:
"§ 116‑21.3. Legislative tuition grant limitations.
(a) For purposes of this section, an "off‑campus program" is any program offered for degree credit away from the institution's main permanent campus.
(b) No legislative tuition grant funds shall be expended for a program at an off‑campus site of a private institution, as defined in G.S. 116‑22(1), established after May 15, 1987, unless (i) the private institution offering the program has previously notified and secured agreement from other private institutions operating degree programs in the county in which the off‑campus program is located or operating in the counties adjacent to that county or (ii) the degree program is neither available nor planned in the county with the off‑campus site or in the counties adjacent to that county.
(c) Any member of the armed
services, as defined in G.S. 116‑143.3(a), abiding in this State
incident to active military duty, who does not qualify as a resident for
tuition purposes, as defined under G.S. 116‑143.1, is eligible for a
legislative tuition grant pursuant to this section if the member is enrolled as
a full‑time student.undergraduate student or as a licensure
student. The member's legislative tuition grant shall not exceed the cost
of tuition less any tuition assistance paid by the member's employer.
(d) A legislative tuition
grant authorized under G.S. 116‑21.2 G.S. 116‑21.2(a)
shall be reduced by twenty‑five percent (25%) for any individual
student who has completed 140 semester credit hours or the equivalent of 140
semester credit hours."
SECTION 9.13.(f) G.S. 116‑21.4(b) reads as rewritten:
"(b) Expenditures made pursuant to G.S. 116‑19, 116‑20, 116‑21.1, or 116‑21.2 shall not be used for any student or licensure student who:
(1) Is incarcerated in a State or federal correctional facility for committing a Class A, B, B1, or B2 felony; or
(2) Is incarcerated in a State or federal correctional facility for committing a Class C through I felony and is not eligible for parole or release within 10 years."
SECTION 9.13.(g) G.S. 116‑22 is amended by adding a new subdivision to read:
"(1b) 'Licensure student' shall mean a person who:
a. Has a bachelors degree;
b. Is enrolled either full‑time or less than full‑time in a program intended to result in licensure in teaching or nursing;
c. Attends an institution located in the State; and
d. Qualifies as a resident of North Carolina in accordance with definitions of residency that may from time to time be adopted by the Board of Governors of The University of North Carolina and published in the residency manual of the Board."
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
CHANGE REPORTING DATE OF AGING STUDY COMMISSION
SECTION 10.1. The third paragraph of Section 10.40A.(p) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.40A.(p)
…
The Department shall submit a
progress report to the North Carolina Study Commission on Aging and to the
Senate Appropriations Committee on Health and Human Services and to the House
of Representatives Subcommittee on Health and Human Services on or before April
1, 2006.January 1, 2007.
…"
Rate Setting For Child Caring Institutions
SECTION 10.2.(a) Section 10.47(b) of S.L. 2005‑276 is repealed.
SECTION 10.2.(b) G.S. 110‑93.1 is repealed.
SECTION 10.2.(c) G.S. 143B‑153(2)d. reads as rewritten:
"§ 143B‑153. Social Services Commission – creation, powers and duties.
There is hereby created the Social Services Commission of the Department of Health and Human Services with the power and duty to adopt rules and regulations to be followed in the conduct of the State's social service programs with the power and duty to adopt, amend, and rescind rules and regulations under and not inconsistent with the laws of the State necessary to carry out the provisions and purposes of this Article. Provided, however, the Department of Health and Human Services shall have the power and duty to adopt rules and regulations to be followed in the conduct of the State's medical assistance program.
…
(2) The Social Services Commission shall have the power and duty to establish standards and adopt rules and regulations:
…
d. For the payment of State
funds to private child‑placing agencies as defined in G.S. 131D‑10.2(4)
and residential child care facilities as defined in G.S. 131D‑10.2(13)
for care and services provided to children who are in the custody or placement
responsibility of a county department of social services; andservices.
The Commission shall establish standardized rates for child caring institutions
in this State, which rates shall be updated annually on July 1. Rate‑setting
recommendations provided by the Office of the State Auditor shall be
incorporated into the Department of Social Services' rate‑setting
methodology; and
…
…."
SECTION 10.2.(d) The effective date for establishing standardized rates for child caring institutions in this State, as enacted in subsection (c) of this section, shall be July 1, 2007.
SECTION 10.3. Section 10.11 of S.L. 2005‑276 reads as rewritten:
"SECTION 10.11.(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 eighty‑five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section. In addition, the State shall pay eighty‑five percent (85%); the county shall pay fifteen percent (15%) of the federal Medicare Part D clawback payments under the Medicare Modernization Act of 2004.
(3) 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 through contractual means to improve and enhance information systems that provide management information and claims processing. The Department of Health and Human Services shall identify adequate funds to support the implementation and first year's operational costs that exceed the currently allocated funds for the new contract for the fiscal agent for the Medicaid Management Information System.
(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 10.11.(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. –
a. The Division of Medical Assistance, Department of Health and Human Services, may provide incentives to counties that successfully recover fraudulently spent Medicaid funds by sharing State savings with counties responsible for the recovery of the fraudulently spent funds.
b. For the purposes of investigating and reducing client fraud and abuse, the Department of Health and Human Services, Division of Medical Assistance, shall, unless prohibited by federal law, include in the Medicaid enrollment process the requirement that the applicant for Medicaid consent to or authorize in writing the release of the applicant's medical records for the three years immediately preceding the application for Medicaid benefits. The Department shall obtain and use information from the applicant's medical records in a manner and form that complies with the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), P.L. 104‑191, as amended, and that protects the privacy of the information as required by other applicable federal or State law. In addition to fraud and abuse detection, the Department may require the applicant's consent for other purposes permitted by HIPAA and required or authorized by other applicable federal or State law.
(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 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. 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 10.11.(c) Eligibility. – Eligibility for Medicaid shall be determined in accordance with the following:
(1) Medicaid and Work First Family Assistance, Income Eligibility Standards. – The maximum net family annual income eligibility standards for Medicaid and Work First Family Assistance and the Standard of Need for Work First Family Assistance shall be as follows:
Categorically Needy‑WFFA* Medically Needy
Family Standard Families and Children
Size Of Need Income
Level AA,AB,AD*
1 $4,344 $2,172 $2,900
2 5,664 2,832 3,900
3 6,528 3,264 4,400
4 7,128 3,564 4,800
5 7,776 3,888 5,200
6 8,376 4,188 5,600
7 8,952 4,476 6,000
8 9,256 4,680 6,300
*Work First Family Assistance (WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).
The payment level for Work First Family Assistance shall be fifty percent (50%) of the standard of need.
These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
(2) The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to all elderly, blind, and disabled people who have incomes equal to or less than one hundred percent (100%) of the federal poverty guidelines, as revised each April 1.
(3) The Department of Health and Human Services shall provide Medicaid to 19 and 20-year-olds in accordance with federal rules and regulations.
(4) Pregnant women and children. – The Department of Health and Human Services shall provide coverage to pregnant women and to children according to the following schedule:
a. Pregnant women with incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
b. Effective January 1, 2006, infants under the age of one with family incomes equal to or less than two hundred percent (200%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
c. Effective January 1, 2006, children aged one through five with family incomes equal to or less than two hundred percent (200%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
d. Children aged six through 18 with family incomes equal to or less than the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
e. The Department of Health and Human Services shall provide Medicaid coverage for adoptive children with special or rehabilitative needs regardless of the adoptive family's income.
Services to pregnant women eligible under this subsection continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy. In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children described in subdivisions (3) and (4) of this subsection, no resources test shall be applied.
(5) The Department of Health and Human Services shall provide Medicaid coverage for family planning services to men and women of childbearing age with family incomes equal to or less than one hundred eight‑five percent (185%) of the federal poverty level.
(6) 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
(7) Medicaid enrollment of categorically needy families with children shall be continuous for one year without regard to changes in income or assets.
(8) For all Medicaid eligibility classifications for which the federal poverty level is used as an income limit for eligibility determination, the income limits will be updated each April 1 immediately following publication of federal poverty guidelines.
(9) When implementing the Supplemental Security Income (SSI) method for considering equity value of income producing property, the Department shall, to the maximum extent possible, employ procedures to mitigate the hardship to Medicaid enrollees occurring from application of the SSI method.
SECTION 10.11.(d) Services and Payment Bases. – Funds appropriated for Medicaid services shall be expended in accordance with the following schedule of services and payment bases. All services and payments are subject to the language at the end of this subsection. This subsection is divided into services that are mandated by federal law, and those that are optional under federal law. 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.
Services and payment bases – Mandatory
(1) Hospital inpatient.
(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. The Division of Medical Assistance shall allow nursing facility providers sufficient time from the effective date of this act to certify additional Medicare beds if necessary. In determining the date that the requirements of this subdivision become effective, the Division of Medical Assistance shall consider the regulations governing certification of Medicare beds and the length of time required for this process to be completed.
(4) Physicians, certified nurse midwife services, nurse practitioners. – Fee schedules as development 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; non‑provider‑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.
Services and payment bases – Optional
(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.
(20) Physical therapy and speech therapy. – Services limited to EPSDT‑eligible children. Payments are to be made only to qualified providers at rates negotiated by the Department of Health and Human Services. Physical therapy (including occupational therapy) and speech therapy services are subject to prior approval and utilization review.
(21) Personal care 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 Board certified. 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". In addition to the entities listed in subsection (a) of this section, the Department shall report to the Joint Legislative Commission on Governmental Operations on authorizations, limitations, and reviews established under this subparagraph, including limitations on monthly brand‑name and generic prescriptions as well as restrictions on the total number of medications. The Department shall submit the report not later than May 1, 2006.
Dispensing of generic drugs. – Notwithstanding G.S. 90‑85.27 through G.S. 90‑85.31, or any other law to the contrary, under the Medical Assistance Program (Title XIX of the Social Security Act), and except as otherwise provided in this subsection for atypical antipsychotic drugs and drugs listed in the narrow therapeutic index, a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber has determined, at the time the drug is prescribed, that the brand‑name drug is medically necessary and has written on the prescription order the phrase "medically necessary". An initial prescription order for an atypical antipsychotic drug or a drug listed in the narrow therapeutic drug index that does not contain the phrase "medically necessary" shall be considered an order for the drug by its established or generic name, except that a pharmacy shall not substitute a generic or established name prescription drug for subsequent brand or trade name prescription orders of the same prescription drug without explicit oral or written approval of the prescriber given at the time the order is filled. Generic drugs shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand‑name drugs. As used in this subsection, "brand name" means the proprietary name the manufacturer places upon a drug product or on its container, label, or wrapping at the time of packaging; and "established name" has the same meaning as in section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act as amended, 21 U.S.C. § 352(e)(3).
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: (i) mental illness, including, but not limited to, medications for schizophrenia, bipolar disorder, and major depressive disorder, or (ii) 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, certified 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, licensed 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.
e. The Department of Health and Human Services shall not enroll licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, licensed clinical addiction specialists, and licensed clinical supervisors until all of the following conditions have been met:
1. The fiscal impact of payments to these qualified providers has been projected;
2. Funding for any projected requirements in excess of budgeted Division of Medical Assistance funding has been identified from within State funds appropriated to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to support area mental health programs or county programs, or identified from other sources; and
3. Approval has been obtained from the Office of State Budget and Management to transfer these State or other source funds from the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to the Division of Medical Assistance. Upon approval and implementation, the Department of Health and Human Services shall, on a quarterly basis, provide a status report to the Office of State Budget and Management and the Fiscal Research Division.
Notwithstanding G.S. 150B‑21.1(a), the Department of Health and Human Services may adopt temporary rules in accordance with Chapter 150B of the General Statutes further defining the qualifications of providers and referral procedures in order to implement this subdivision. Coverage policy for services defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services under sub‑subdivisions a. and b.2 of this subdivision shall be established by the Division of Medical Assistance.
SECTION 10.11.(e) Limitations on payments. –
(1) Payment is limited to Medicaid‑enrolled providers that purchase a performance bond in an amount not to exceed one hundred thousand dollars ($100,000) naming as beneficiary the Department of Health and Human Services, Division of Medical Assistance, or provide to the Department a validly executed letter of credit or other financial instrument issued by a financial institution or agency honoring a demand for payment in an equivalent amount. The Department may waive or limit the requirements of this paragraph for one or more classes of Medicaid‑enrolled providers based on the provider's dollar amount of monthly billings to Medicaid or the length of time the provider has been licensed in this State to provide services. In waiving or limiting requirements of this paragraph, the Department shall take into consideration the potential fiscal impact of the waiver or limitation on the State Medicaid Program. The Department may adopt temporary rules in accordance with G.S. 150B‑21.1 as necessary to implement this provision.
(2) Reimbursement is available and may be limited in accordance with federal EPSDT requirements to any one or combination of the following: physicians, clinics, hospital outpatient, optometrists, chiropractors, and podiatrists. Prenatal services, all EPSDT children, emergency rooms, and mental health services subject to independent utilization review are exempt from the visit limitations contained in this paragraph. Exceptions may be authorized by the Department of Health and Human Services where the life of the patient would be threatened without such additional care.
SECTION 10.11.(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 payments bases in this section may be waived by the Department of Health and Human Services, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans, contracting for services, managed care plans, or community‑based services programs in accordance with plans approved by the United States Department of Health and Human Services or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient. The Department of Health and Human Services may proceed with planning and development work on the Program of All‑Inclusive Care for the Elderly.
(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 and required by this subsection in order to achieve reductions in the budget in fiscal years 2005‑2006 and 2006‑2007.
(3) The Department of Health and Human Services shall provide Medicaid coverage for 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 level. Of the funds appropriated in this act to the Division of Medical Assistance, the sum of seven hundred fifty thousand dollars ($750,000) for the 2005‑2006 fiscal year shall be used to provide the State‑match for the family planning demonstration waiver approved by the federal government.
SECTION 10.11.(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. Prior to the filing of these temporary or emergency rules 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 subsection (a)(4) of this section, the report shall be submitted to the Joint Legislative Health Care Oversight Committee."
SECTION 10.11.(a)
Funds appropriated in this act for services provided in accordance with Title
XIX of the Social Security Act (Medicaid) are for both the categorically needy
and the medically needy. Funds appropriated for these services shall be
expended in accordance with the following schedule of services and payment
bases. All services and payments are subject ot the language at the end of
this subsection.
Services and payment bases:
(1) Hospital
inpatient. – Payment for hospital inpatient services will be prescribed in the
State Plan as established by the Department of Health and Human Services.
(2) Hospital
outpatient. – Eighty percent (80%) of allowable costs or a prospective
reimbursement plan as established by the Department of Health and Human
Services.
(3) Nursing
facilities. – Payment for nursing facility services will be prescribed in the State
Plan as established by the Department of Health and Human Services. Nursing
facilities providing services to Medicaid recipients who also qualify for
Medicare must be enrolled in the Medicare program as a condition of
participation in the Medicaid program. State facilities are not subject to the
requirement to enroll in the Medicare program. Residents of nursing facilities
who are eligible for Medicare coverage of nursing facility services must be
placed in a Medicare‑certified bed. Medicaid shall cover facility
services only after the appropriate services have been billed to Medicare. The
Division of Medical Assistance shall allow nursing facility providers
sufficient time from the effective date of this act to certify additional
Medicare beds if necessary. In determining the date that the requirements of
this subdivision become effective, the Division of Medical Assistance shall
consider the regulations governing certification of Medicare beds and the
length of time required for this process to be completed.
(4) Intermediate
care facilities for the mentally retarded. – As prescribed in the State Plan as
established by the Department of Health and Human Services.
(5) Drugs. –
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". The Department
shall report to the Joint Legislative Commission on Governmental Operations,
the Senate Appropriations Committee on Health and Human Services, the House of
Representatives Appropriations Subcommittee on Health and Human Services, and
the Fiscal Research Division on authorizations, limitations, and reviews
established under this subparagraph, including limitations on monthly brand‑name
and generic prescriptions as well as restrictions on the total number of
medications. The Department shall submit the report not later than May 1, 2006.
Dispensing of
generic drugs. – Notwithstanding G.S. 90‑85.27 through G.S. 90‑85.31,
or any other law to the contrary, under the Medical Assistance Program (Title
XIX of the Social Security Act), and except as otherwise provided in this subsection
for atypical antipsychotic drugs and drugs listed in the narrow therapeutic
index, a prescription order for a drug designated by a trade or brand name
shall be considered to be an order for the drug by its established or generic
name, except when the prescriber has determined, at the time the drug is
prescribed, that the brand‑name drug is medically necessary and has
written on the prescription order the phrase "medically necessary".
An initial prescription order for an atypical antipsychotic drug or a drug
listed in the narrow therapeutic drug index that does not contain the phrase "medically
necessary" shall be considered an order for the drug by its established or
generic name, except that a pharmacy shall not substitute a generic or
established name prescription drug for subsequent brand or trade name
prescription orders of the same prescription drug without explicit oral or
written approval of the prescriber given at the time the order is filled.
Generic drugs shall be dispensed at a lower cost to the Medical Assistance
Program rather than trade or brand‑name drugs. As used in this
subsection, "brand name" means the proprietary name the manufacturer
places upon a drug product or on its container, label, or wrapping at the time
of packaging; and "established name" has the same meaning as in
section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act as amended, 21
U.S.C. § 352(e)(3).
(6) Physicians,
chiropractors, podiatrists, optometrists, dentists, certified nurse midwife
services, nurse practitioners. – Fee schedules as developed by the Department
of Health and Human Services. Payments for dental services are subject to the
provisions of subsection (g) of this section.
(7) Community
Alternative Program, EPSDT screens. – Payment to be made in accordance with the
rate schedule developed by the Department of Health and Human Services.
(8) Home health and
related services, private duty nursing, clinic services, prepaid health plans,
durable medical equipment. – Payment to be made according to reimbursement
plans developed by the Department of Health and Human Services.
(9) Medicare Buy‑In.
– Social Security Administration premium.
(10) Ambulance
services. – Uniform fee schedules as developed by the Department of Health and
Human Services. Public ambulance providers will be reimbursed at cost.
(11) Hearing aids. –
Wholesale cost plus a dispensing fee to the provider.
(12) Rural health
clinic services. – Provider‑based, reasonable cost; nonprovider‑based,
single‑cost reimbursement rate per clinic visit.
(13) Family planning.
– Negotiated rate for local health departments. For other providers, see
specific services, for instance, hospitals, physicians.
(14) Independent
laboratory and X‑ray services. – Uniform fee schedules as developed by
the Department of Health and Human Services.
(15) Optical
supplies. – Payment for materials is made to a contractor in accordance with 42
C.F.R. § 431.54(d). Fees paid to dispensing providers are negotiated fees
established by the State agency based on industry charges.
(16) Ambulatory
surgical centers. – Payment as prescribed in the reimbursement plan established
by the Department of Health and Human Services.
(17) Medicare
crossover claims. – By not later than October 1, 2005, the Department shall
apply Medicaid medical policy to Medicare claims for dually eligible
recipients. The Department shall pay an amount up to the actual coinsurance or
deductible or both, in accordance with the State Plan, as approved by the
Department of Health and Human Services.
(18) Physical therapy
and speech therapy. – Services limited to EPSDT‑eligible children.
Payments are to be made only to qualified providers at rates negotiated by the
Department of Health and Human Services. Physical therapy (including
occupational therapy) and speech therapy services are subject to prior approval
and utilization review.
(19) Personal care
services. – Payment in accordance with the State Plan approved by the
Department of Health and Human Services.
(20) Case management
services. – Reimbursement in accordance with the availability of funds to be
transferred within the Department of Health and Human Services.
(21) Hospice. –
Services may be provided in accordance with the State Plan developed by the
Department of Health and Human Services.
(22) Other mental
health services. – Unless otherwise covered by this section, coverage is
limited to:
a. Services as
defined by the Division of Mental Health, Developmental Disabilities, and
Substance Abuse Services and approved by the Centers for Medicare and Medicaid
Services (CMS) when provided in agencies meeting the requirements of the rules
established by the Commission for Mental Health, Developmental Disabilities,
and Substance Abuse Services and reimbursement is made in accordance with a
State Plan developed by the Department of Health and Human Services not to
exceed the upper limits established in federal regulations, and
b. For children
eligible for EPSDT services 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, certified
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 certified
clinical supervisors, Medicaid‑eligible adults may be self‑referred.
d. Payments made
for services rendered in accordance with this subdivision shall be to qualified
providers in accordance with approved policies and the State Plan. Nothing in
sub‑subdivision b. or c. of this subdivision shall be interpreted to
modify the scope of practice of any service provider, practitioner, or
licensee, nor to modify or attenuate any collaboration or supervision
requirement related to the professional activities of any service provider,
practitioner, or licensee. Nothing in sub‑subdivision b. or c. of this
subdivision shall be interpreted to require any private health insurer or
health plan to make direct third‑party reimbursements or payments to any
service provider, practitioner, or licensee.
e. The Department
of Health and Human Services shall not enroll licensed psychological
associates, licensed professional counselors, licensed marriage and family
therapists, certified clinical addiction specialists, and certified clinical
supervisors until all of the following conditions have been met:
1. The fiscal
impact of payments to these qualified providers has been projected;
2. Funding for
any projected requirements in excess of budgeted Division of Medical Assistance
funding has been identified from within State funds appropriated to the
Department of Health and Human Services, Division of Mental Health,
Developmental Disabilities, and Substance Abuse Services to support area mental
health programs or county programs, or identified from other sources; and
3. Approval has
been obtained from the Office of State Budget and Management to transfer these
State or other source funds from the Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services to the Division of Medical
Assistance. Upon approval and implementation, the Department of Health and
Human Services shall, on a quarterly basis, provide a status report to the
Office of State Budget and Management and the Fiscal Research Division.
Notwithstanding G.S. 150B‑21.1(a),
the Department of Health and Human Services may adopt temporary rules in
accordance with Chapter 150B of the General Statutes further defining the
qualifications of providers and referral procedures in order to implement this
subdivision. Coverage policy for services defined by the Division of Mental
Health, Developmental Disabilities, and Substance Abuse Services under sub‑subdivisions
a. and b.2 of this subdivision shall be established by the Division of Medical
Assistance.
(23) Medically
necessary prosthetics or orthotics. – Reimbursement in accordance with the
State Plan approved by the Department of Health and Human Services, except that
in order to be eligible for reimbursement, providers must be Board certified
not later than July 1, 2005. Medically necessary prosthetics and orthotics are
subject to prior approval and utilization review.
(24) Health insurance
premiums. – Payments to be made in accordance with the State Plan adopted by
the Department of Health and Human Services consistent with federal
regulations.
(25) Medical
care/other remedial care. – Services not covered elsewhere in this section
include related services in schools; health professional services provided
outside the clinic setting to meet maternal and infant health goals; and
services to meet federal EPSDT mandates. Services addressed by this subdivision
are limited to those prescribed in the State Plan as established by the
Department of Health and Human Services.
(26) Pregnancy‑related
services. – Covered services for pregnant women shall include nutritional
counseling, psychosocial counseling, and predelivery and postpartum home visits
by maternity care coordinators and public health nurses.
Services and payment bases may be
changed with the approval of the Director of the Budget.
Payment is limited to Medicaid‑enrolled
providers that purchase a performance bond in an amount not to exceed one
hundred thousand dollars ($100,000) naming as beneficiary the Department of
Health and Human Services, Division of Medical Assistance, or provide to the
Department a validly executed letter of credit or other financial instrument
issued by a financial institution or agency honoring a demand for payment in an
equivalent amount. The Department may waive or limit the requirements of this
paragraph for one or more classes of Medicaid‑enrolled providers based on
the provider's dollar amount of monthly billings to Medicaid or the length of
time the provider has been licensed in this State to provide services. In
waiving or limiting requirements of this paragraph, the Department shall take
into consideration the potential fiscal impact of the waiver or limitation on
the State Medicaid Program. The Department may adopt temporary rules in
accordance with G.S. 150B‑21.1 as necessary to implement this
provision.
Reimbursement is available for
up to 24 visits per recipient per year to any one or combination of the
following: physicians, clinics, hospital outpatient, optometrists,
chiropractors, and podiatrists. Prenatal services, all EPSDT children,
emergency rooms, and mental health services subject to independent utilization
review are exempt from the visit limitations contained in this paragraph.
Exceptions may be authorized by the Department of Health and Human Services
where the life of the patient would be threatened without such additional care.
SECTION 10.11.(b)
Allocation of Nonfederal Cost of Medicaid. – The State shall pay eighty‑five
percent (85%); the county shall pay fifteen percent (15%) of the nonfederal
costs of all applicable services listed in this section. In addition,
the State shall pay eighty‑five percent (85%); the county shall pay
fifteen percent (15%) of the federal Medicare Part D clawback payments under
the Medicare Modernization Act of 2004.
SECTION 10.11.(c)
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 and required by this subsection in order to achieve
reductions in the budget in fiscal years 2005‑2006
and 2006‑2007.
SECTION 10.11.(d)
Medicaid and Work First Family Assistance, Income Eligibility Standards. – The
maximum net family annual income eligibility standards for Medicaid and Work
First Family Assistance and the Standard of Need for Work First Family
Assistance shall be as follows:
Categorically
Needy
Medically Needy
WFFA*
Family Standard
Families
and
Size of
Need
Children Income
Level AA,
AB, AD*
1
$4,344
$2,172 $2,900
2
5,664
2,832 3,800
3
6,528
3,264 4,400
4
7,128
3,564 4,800
5
7,776
3,888 5,200
6
8,376
4,188 5,600
7
8,952
4,476 6,000
8
9,256
4,680 6,300
*Work First Family Assistance
(WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled
(AD).
The payment level for Work First
Family Assistance shall be fifty percent (50%) of the standard of need.
These standards may be changed
with the approval of the Director of the Budget with the advice of the Advisory
Budget Commission.
SECTION 10.11.(e)
The Department of Health and Human Services, Division of Medical Assistance,
shall provide Medicaid coverage to all elderly, blind, and disabled people who
have incomes equal to or less than one hundred percent (100%) of the federal
poverty guidelines, as revised each April 1. This subsection expires
December 31, 2005.
SECTION 10.11.(f)
ICF and ICF/MR Work Incentive Allowances. – The Department of Health and Human
Services may provide an incentive allowance to Medicaid‑eligible
recipients of ICF and ICF/MR facilities who are regularly engaged in work
activities as part of their developmental plan and for whom retention of
additional income contributes to their achievement of independence. The State
funds required to match the federal funds that are required by these allowances
shall be provided from savings within the Medicaid budget or from other
unbudgeted funds available to the Department. The incentive allowances may be
as follows:
Monthly Net Wages Monthly
Incentive Allowance
$1.00 to $100.99
Up
to $50.00
$101.00 to $200.99
$80.00
$201.00 to $300.99
$130.00
SECTION 10.11.(g)
Dental Coverage Limits. – Dental services shall be provided on a restricted
basis in accordance with rules adopted by the Department to implement this
subsection.
SECTION 10.11.(h)
Exceptions to Service Limitations, Eligibility Requirements, and Payments. –
Service limitations, eligibility requirements, and payments bases in this
section may be waived by the Department of Health and Human Services, with the
approval of the Director of the Budget, to allow the Department to carry out
pilot programs for prepaid health plans, contracting for services, managed care
plans, or community‑based services programs in accordance with plans
approved by the United States Department of Health and Human Services or when
the Department determines that such a waiver will result in a reduction in the
total Medicaid costs for the recipient. The Department of Health and Human
Services may proceed with planning and development work on the Program of All‑Inclusive
Care for the Elderly.
SECTION 10.11.(i)
Volume Purchase Plans and Single Source Procurement. – The Department of Health
and Human Services, Division of Medical Assistance, may, subject to the
approval of a change in the State Medicaid Plan, contract for services, medical
equipment, supplies, and appliances by implementation of volume purchase plans,
single source procurement, or other contracting processes in order to improve
cost containment.
SECTION 10.11.(j)
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.
SECTION 10.11.(k)
For all Medicaid eligibility classifications for which the federal poverty
level is used as an income limit for eligibility determination, the income
limits will be updated each April 1 immediately following publication of
federal poverty guidelines.
SECTION 10.11.(l)
The Department of Health and Human Services shall provide Medicaid to 19‑,
20‑, and 21‑year‑olds in accordance with federal rules and
regulations.
SECTION 10.11.(m)
The Department of Health and Human Services shall provide coverage to pregnant
women and to children according to the following schedule:
(1) Pregnant women
with incomes equal to or less than one hundred eighty‑five percent (185%)
of the federal poverty guidelines as revised each April 1 shall be covered for
Medicaid benefits.
(2) Effective until
January 1, 2006, infants under the age of one with family incomes equal to or
less than one hundred eighty‑five percent (185%) of the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
Effective January 1, 2006, infants under the age of one with family incomes
equal to or less than two hundred percent (200%) of the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
(3) Effective until
January 1, 2006, children aged one through five with family incomes equal to or
less than one hundred thirty‑three percent (133%) of the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
Effective January 1, 2006, children aged one through five with family incomes
equal to or less than two hundred percent (200%) of the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
(4) Children aged
six through 18 with family incomes equal to or less than the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
(5) The Department
of Health and Human Services shall provide Medicaid coverage for adoptive
children with special or rehabilitative needs regardless of the adoptive family's
income.
Services to pregnant women
eligible under this subsection continue throughout the pregnancy but include
only those related to pregnancy and to those other conditions determined by the
Department as conditions that may complicate pregnancy. In order to reduce
county administrative costs and to expedite the provision of medical services
to pregnant women, to infants, and to children described in subdivisions (3)
and (4) of this subsection, no resources test shall be applied.
SECTION 10.11.(o)
The Division of Medical Assistance, Department of Health and Human Services,
may provide incentives to counties that successfully recover fraudulently spent
Medicaid funds by sharing State savings with counties responsible for the
recovery of the fraudulently spent funds.
SECTION 10.11.(p)
If first approved by the Office of State Budget and Management, the Division
of Medical Assistance, Department of Health and Human Services, may use funds
that are identified to support the cost of development and acquisition of
equipment and software through contractual means to improve and enhance
information systems that provide management information and claims processing.
The Department of Health and Human Services shall identify adequate funds to
support the implementation and first year's operational costs that exceed the
currently allocated funds for the new contract for the fiscal agent for the
Medicaid Management Information System.
SECTION
10.11.(q) 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. Prior to the
filing of these temporary or emergency rules 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.
SECTION 10.11.(r)
The Department shall report to the Fiscal Research Division of the Legislative
Services Office and to the House of Representatives Appropriations Subcommittee
on Health and Human Services and the Senate Appropriations Committee on Health
and Human Services or the Joint Legislative Health Care Oversight Committee on
any change it anticipates making in the Medicaid program that impacts the type
or level of service, reimbursement methods, or waivers, any of which require a
change in the State Plan or other approval by the Centers for Medicare and
Medicaid Services (CMS). The reports shall be provided at the same time they
are submitted to CMS for approval.
SECTION
10.11.(s) The Department of Health and Human Services shall provide
Medicaid coverage for 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 level. Of the funds
appropriated in this act to the Division of Medical Assistance, the sum of
seven hundred fifty thousand dollars ($750,000) for the 2005‑2006 fiscal
year shall be used to provide the State‑match for the family planning
demonstration waiver approved by the federal government.
SECTION 10.11.(t)
For the purposes of determining eligibility for Medical Assistance, the
Department of Health and Human Services may apply federal transfer of assets
policies, as described in Title XIX, section 1917(c) of the Social Security
Act, including the attachment of liens, to (i) life estates purchased by or on
behalf of the recipient, other than life estates excluded from countable
resources under this section, and (ii) to real property excluded as "income
producing", tenancy‑in‑common, or as nonhomesite property made
"income producing" under Title XIX, section 1902(r)(2) of the Social
Security Act. The transfer of assets policy shall apply only to an
institutionalized individual or the individual's spouse as defined in Title
XIX, section 1917(c) of the Social Security Act. The Department shall exclude
from countable resources any life estate in real property that is in the
recipient's home, is measured by the recipient's life, and is the result of the
transfer of a remainder interest.
Federal transfer of assets
policies applied to "income producing" real property under Title XIX,
section 1902(r)(2) of the Social Security Act shall become effective not
earlier than October 1, 2001. Federal transfer of assets policies and
attachment of liens applied to real property excluded as tenancy‑in‑common,
or as nonhomesite property made "income producing" in accordance with
this subsection shall become effective not earlier than November 1, 2002.
Federal transfer of assets policies applied to life estates in accordance with
this subsection shall become effective not earlier than October 1, 2005.
SECTION 10.11.(u)
When implementing the Supplemental Security Income (SSI) method for considering
equity value of income producing property, the Department shall, to the maximum
extent possible, employ procedures to mitigate the hardship to Medicaid
enrollees occurring from application of the Supplemental Security Income (SSI)
method.
SECTION
10.11.(v) 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 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. 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 10.11.(w)
The Department shall develop, amend, and adopt medical coverage policy in
accordance with the following:
(1) During the
development of new medical coverage policy or amendment to existing medical
coverage policy, consult with and seek the advice of the Physician Advisory
Group of the North Carolina Medical Society and other organizations the
Secretary deems appropriate. 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
Medicaid providers of the proposed, new, or amended policy; and
c. Upon request,
provide persons copies of the proposed medical coverage policy.
(3) During the 45‑day
period immediately following publication of the proposed new or amended medical
coverage policy, accept oral and written comments on the proposed new or
amended policy.
(4) If, following
the comment period, the proposed new or amended medical coverage policy is
modified, then the Department shall, at least 15 days prior to its adoption:
a. Notify all
Medicaid providers of the proposed policy;
b. Upon request,
provide persons notice of amendments to the proposed policy; and
c. Accept
additional oral or written comments during this 15‑day period.
SECTION 10.11.(x)
For the purposes of investigating and reducing client fraud and abuse, the
Department of Health and Human Services, Division of Medical Assistance, shall,
unless prohibited by federal law, include in the Medicaid enrollment process
the requirement that the applicant for Medicaid consent to or authorize in
writing the release of the applicant's medical records for the three years
immediately preceding the application for Medicaid benefits. The Department
shall obtain and use information from the applicant's medical records in a
manner and form that complies with the Health Insurance Portability and
Accountability Act of 1996 ("HIPAA"), P.L. 104‑191, as amended,
and that protects the privacy of the information as required by other
applicable federal or State law. In addition to fraud and abuse detection, the
Department may require the applicant's consent for other purposes permitted by
HIPAA and required or authorized by other applicable federal or State law.
SECTION 10.11.(y)
The Joint Legislative Oversight Committee on Mental Health, Developmental
Disabilities, and Substance Abuse Services shall provide an opportunity for
interested advocacy organizations to comment on restrictions imposed by the
Department of Health and Human Services, Division of Medical Assistance, on the
medications prescribed for Medicaid recipients, as authorized under subsection
(a)(5) of this section. The Committee may report its findings or
recommendations based on comments received 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 April 30, 2006."
PROCEDURES FOR CHANGES TO DHHS MEDICAL POLICY
SECTION 10.4. Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑54.2. 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, 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 Medicaid providers of the proposed, new, or amended policy; and
c. Upon request, provide persons copies of the proposed medical coverage policy.
(3) During the 45‑day period immediately following publication of the proposed new or amended medical coverage policy, accept oral and written comments on the proposed new or amended policy.
(4) If, following the comment period, the proposed new or amended medical coverage policy is modified, then the Department shall, at least 15 days prior to its adoption:
a. Notify all Medicaid providers of the proposed policy;
b. Upon request, provide persons notice of amendments to the proposed policy; and
c. Accept additional oral or written comments during this 15‑day period."
SECTION 10.5.(a) G.S. 108A‑58 is repealed.
SECTION 10.5.(b) Part 6 of Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑58.1. Ineligibility for medical assistance based on transferring assets for less than fair market value.
(a) General rule. – Except as otherwise provided herein, an individual who is otherwise eligible to receive medical assistance under this Part is ineligible for Medicaid coverage and payment for the services specified in subsection (d) during the period specified in subsection (c) if the individual or the individual's spouse transfers an asset for less than fair market value on or after the "lookback date" specified in subsection (b).
(b) Lookback date. –
(1) Except as otherwise provided herein, the lookback date is the date specified in 42 U.S.C. § 1396p(c)(1)(B).
(2) Notwithstanding subdivision (1), the lookback date with respect to the medical services specified in subdivision (d)(2) is the date specified in 42 U.S.C. § 1396p(c)(1)(B) or February 1, 2003, whichever is later.
(c) Penalty period. – The penalty period for the transfer of assets for less than fair market value is the period specified in 42 U.S.C. § 1396p(c)(1)(D), (E), and (H).
(d) Medical services. –
(1) In the case of an institutionalized individual, the transfer of assets penalty applies with respect to nursing facility services, a level of care in any institution equivalent to that of nursing facility services, and to home or community‑based services furnished under the State's Community Alternatives Program waiver pursuant to 42 U.S.C. § 1396n(c) or (d).
(2) In the case of a noninstitutionalized individual, the transfer of assets penalty applies with respect to home health services and personal care services as defined in 42 U.S.C. § 1396d(a)(7) and (24) and, to the extent permitted by federal law, such other long‑term care services specified by rules adopted by the Department of Health and Human Services pursuant to subsection (k) of this section.
(e) Assets. – Assets are the income and resources of an individual or the individual's spouse (including the individual's or spouse's home) as defined in 42 U.S.C. § 1396p(h) and 42 U.S.C. § 1396p(c)(1)(G), (I), and (J).
(f) Fair market value and uncompensated value. –
(1) The fair market value of an asset is the value (minus any valid and legally enforceable liens, mortgages, and encumbrances against the asset) that would have been received if the asset had been sold for good and valuable consideration at the prevailing market price at the time the asset was transferred. In the case of real or personal property that is taxable under Subchapter II of Chapter 105 of the General Statutes, there is a rebuttable presumption that the fair market value of the property is its most recent value as ascertained under Subchapter II of Chapter 105 of the General Statutes (minus any valid and legally enforceable liens, mortgages, and encumbrances against the property).
(2) The uncompensated value of an asset is its fair market value minus the amount of good and valuable consideration received in exchange for the asset's transfer.
(g) Individual. – An individual is a person who applies for or is receiving medical assistance under this Part regardless of whether the person was, at the time an asset was transferred, a Medicaid applicant or recipient. The term "individual" also includes an individual's legal representative, anyone acting at the individual's direction or request, and any person, agency, or court acting lawfully on behalf of the individual.
(h) Institutionalized and noninstitutionalized individuals. –
(1) An institutionalized individual is an individual who meets the criteria set forth in 42 U.S.C. § 1396p(h)(3), regardless of whether the individual was institutionalized at the time an asset was transferred.
(2) A noninstitutionalized individual is any individual who (i) is not an institutionalized individual, (ii) is an aged, blind, or disabled person who is categorically or medically needy pursuant to 42 C.F.R. § 435. § 120 or a qualified Medicare beneficiary as defined in 42 U.S.C. § 1396d(p)(1), and (3) is not eligible for medical assistance under this Part based on his or her eligibility for an optional State supplement pursuant to 42 C.F.R. § 435.232.
(i) Exceptions. –
(1) This section does not apply if an individual establishes by the greater weight of the evidence that the transfer was exclusively for some purpose other than establishing or retaining eligibility for medical assistance under this Part.
(2) This section does not apply to any transfer specified in 42 U.S.C. § 1396p(c)(2)(A), (B), (C)(i), or (C)(iii).
(j) Hardship waiver. – The Department of Health and Human Services shall waive a transfer of assets penalty that has been imposed or is imposable under this section if the Department determines that imposition of the penalty would create an undue hardship.
(k) Rules and compliance with federal law.–
(1) This section shall be interpreted and administered consistently with governing federal law, including 42 U.S.C. § 1396p(c).
(2) The Department of Health and Human Services shall determine and publish at least annually the average monthly cost of nursing facility services for private patients that will be used in determining the length of a penalty period under this section.
(3) The Department of Health and Human Services shall provide for a hardship waiver process in accordance with 42 U.S.C. § 1396p(c)(2)(D).
(4) The Department of Health and Human Services may adopt administrative rules that are necessary and appropriate to implement this section or the requirements of 42 U.S.C. § 1396p(c) or other federal laws governing the transfer of assets and Medicaid eligibility."
SECTION 10.5.(c) This section is effective when it becomes law. This section does not affect the validity of any Medicaid transfer of assets penalty that was validly imposed before the date this act becomes law under prior federal or state law or rules.
MEDICAID DUALLY ELIGIBLE TO ENROLL IN MEDICARE PARTS A,B,C, D
SECTION 10.6. G.S. 108A‑55.1 reads as rewritten:
"§ 108A‑55.1. Medicare enrollment required.
The Department shall require State
Medical Assistance Program recipients who qualify for Medicare to enroll in
Medicare, in accordance with Title XIX of the Social Security Act, in order to
pay medical expenditures that qualify for payment under Medicare Part B. Parts
A, B, C, and D.
Failure to enroll in Medicare
shall result in nonpayment of these expenditures under the State Medical
Assistance Program. A provider may seek payment for services from Medicaid
enrollees who are eligible for but not enrolled in Medicare Part B
Parts A, B, C, and D."
MEDICAID RESERVE fund TRANSFER
SECTION 10.7.(a) Of the funds transferred to the Department of Health and Human Services for Medicaid programs pursuant to G.S. 143‑23.2, the sum of fifty million dollars ($50,000,000) for the 2006‑2007 fiscal year shall be allocated as prescribed by G.S. 143‑23.2(b) for Medicaid programs. Notwithstanding the prescription in G.S. 143‑23.2(b) that these funds not reduce State general revenue funding, these funds shall replace the reduction in general revenue funding effected in this act.
SECTION 10.7.(b) Of the funds transferred to the Department of Health and Human Services for Medicaid programs pursuant to G.S. 143‑23.2, the sum of five million four thousand five hundred four dollars ($5,004,504) for the 2006‑2007 fiscal year shall be allocated as prescribed by G.S. 143‑23.2(b) for the implementation of the Medicaid Management Information System (MMIS).
REQUIRED DATA SHARING BY PRIVATE HEALTH INSURERS
SECTION 10.8. Part 1 of Article 50 of Chapter 58 of the General Statutes is amended by adding the following new section to read:
"§ 58‑50‑46. Insurers to provide certain information to Department of Health and Human Services.
(a) As used in this section, the terms:
(1) 'Department' means the Department of Health and Human Services.
(2) 'Division' means the Division of Medical Assistance of the Department of Health and Human Services.
(3) 'Health insurer' includes self‑insured plans, group health plans (as defined in section 607(1) of the Employee Retirement Income Security Act of 1974, [29 USC Section 1167(1)]), service benefit plans, managed care organizations, or other parties that are, by statute, contract, or agreement, legally responsible for payment of a claim for a health care item or service as a condition of doing business in the State.
(4) 'Medical assistance' means medical assistance benefits provided under the State Medical Assistance Plan.
(b) Health insurers, and pharmacy benefit managers regulated as third-party administrators under Article 56 of Chapter 58 of the General Statutes, shall provide, with respect to individuals who are eligible for, or are provided, medical assistance, upon request of the Division, information to determine during what period the individual or the individual's spouse or dependents may be (or may have been) covered by a health insurer and the nature of the coverage that is or was provided by the health insurer (including the name, address, and identifying number of the plan) in a manner prescribed by the Division. Notwithstanding any other provision of law, every insurer issuing a health benefit plan shall provide, not more frequently than twelve times in a year and at no cost, to the Department of Health and Human Services, upon its request, information, including automated data matches conducted under the direction of the Department of Health and Human Services, Division of Medical Assistance, as necessary to (i) identify individuals covered under the insurer's health benefit plans who are also recipients of medical assistance; (ii) determine the period during which the individual or the individual's spouses or the individual's dependents may be or may have been covered by the health benefit plan; and (iii) determine the nature of the coverage. To facilitate the Division in obtaining this and other related information, every health insurer shall:
(1) Cooperate with the Division to determine whether a named individual who is a recipient of medical assistance may be covered under the insurer's health benefit plan and eligible to receive benefits under the health benefit plan for services provided under the State Medical Assistance Plan.
(2) Respond to the request for information within 90 working days after receipt of written proof of loss or claim for payment for health care services provided to a recipient of medical assistance who is covered by the insurer's health benefit plan.
(3) Accept the Division's right of recovery and the assignment to the Division of any right of an individual or other entity to payment from the party for an item or service for which payment has been made under the State Medical Assistance Plan.
(4) Respond to any inquiry by the Division regarding a claim for payment for any health care item or service that is submitted not later than three years after the date of the provision of the health care item or service.
(5) Agree not to deny a claim submitted by the Division solely on the basis of the date of submission of the claim, the type of format of the claim form, or a failure to present property documentation at the point‑of‑sale that is the basis of the claim, if:
a. The claim is submitted by the Division within the three‑year period beginning on the date on which the item or service was furnished; and
b. Any action by the Division to enforce its rights with respect to such claim is commenced within six years of the Division's submission of the claim.
(c) An insurer that complies with this section shall not be liable on that account in any civil or criminal actions or proceedings."
TICKET TO WORK EFFECTIVE DATE CHANGE
SECTION 10.9.(a) Section 10.18(c) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.18.(c)
Subsection (b) of this section becomes effective July 1, 2006. Subsection (a)
of this section becomes effective July 1, 2007, or within 30 days after the
date on which the MMIS becomes operational, as determined by the Department of
Health and Human Services, whichever occurs later.2007. Client
enrollment shall begin not later than six months from the date subsection (a)
becomes effective. The remainder of this section is effective when it becomes
law."
SECTION 10.9.(b) The Department of Health and Human Services shall study and develop a plan for the implementation of the Ticket to Work Program. The Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than March 1, 2007, on the results of its study. The report shall include what system changes need to be made to implement the Ticket to Work Program, how soon the changes can be made, and an analysis of the five‑year fiscal impact of the Program.
PUBLIC‑PRIVATE LONG TERM CARE PARTNERSHIP PROGRAM
SECTION 10.10. Pursuant to authority under Section 1917(b) of the Social Security Act (42 USC 1396p(c)), as amended by Public Law 109‑171 effective January 1, 2007, there is established in the Department of Health and Human Services the North Carolina Long‑Term Care Partnership Program. The purpose of the Program is to reduce future Medicaid costs for long‑term care by delaying or eliminating dependence on Medicaid. The Program shall be administered by the Department of Health and Human Services with the assistance of the Commissioner of Insurance. The Department shall structure and administer the Program in accordance with applicable federal law and guidelines for qualified State long‑term care partnerships. The Program, including the treatment of assets for Medicaid eligibility and estate recovery, notwithstanding statutory provisions on treatment of assets and estate recovery to the contrary, shall offer incentives to individuals to insure against the substantial costs of providing for their long‑term care needs. The Long‑Term Care Partnership Program becomes effective on the effective date of the approved State Plan amendment.
STUDY MEDICAID PROVIDER RATE INCREASES
SECTION 10.11.(a) The Secretary of the Department of Health and Human Services shall study and develop a proposal for an equitable standard for providing inflationary increases and other cost‑related increases to service providers in the Medicaid program. The Department shall seek the assistance of external consultants and other appropriate financial experts and affected parties to validate any methodologies used in the development of the standard.
SECTION 10.11.(b) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of one hundred thousand dollars ($100,000) for the 2006‑2007 fiscal year shall be used to support the study. Not later than March 1, 2007, the Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on the findings and recommendations of the study.
SECTION 10.11.(c) The Department of Health and Human Services shall study the feasibility and effectiveness of adjusting and rebasing case-mix reimbursement rates using 2005 cost data for nursing facilities. The study shall include the frequency of rebasing to appropriately reflect increases and decreases in reported and audit costs.
INCREASE HEALTH CARE ACCESS FOR UNINSURED PERSONS
SECTION 10.12.(a) The Secretary of the Department of Health and Human Services shall develop a plan to expand health care access for uninsured North Carolinians through the use of public/private partnerships, federal flexibility and resources, and promotion of charity care by health care providers. The goals of the plan are to:
(1) Aid small businesses that want to provide health care coverage.
(2) Expand health care coverage for the working uninsured persons.
(3) Secure all available federal funds to support the program.
(4) Promote charity care by health care providers.
SECTION 10.12.(b) In developing the plan, the Secretary shall:
(1) Consider findings and recommendations of previous studies on increased access to health care and covering the uninsured to determine their feasibility.
(2) Draw on the experience of other states that have successfully increased access to health care and covered the uninsured.
(3) Determine waivers necessary to secure federal funding available through 1115 Demonstration Waivers and other federal waivers to cover the uninsured.
(4) Explore options such as those available through the Deficit Reduction Act of 2005 (DEFRA) to adjust Medicaid eligibility and benefits to cover the uninsured.
(5) Consider the use of existing funding that might be used to leverage additional federal matching funds including certified public expenditures (CPE), and appropriate federal Disproportionate Share Hospital Program (DSH) funds.
(6) Pursue an agreement with the Centers for Medicare and Medicaid Services (CMS) to develop a methodology for investing Medicare savings realized from the expansion of the scope of Community Care of North Carolina Program to help fund the plan; and
(7) Determine in conjunction with the Office of State Budget and Management the fiscal impact of the plan for a five‑year period.
SECTION 10.12.(c) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of two hundred thousand dollars ($200,000) for the 2006‑2007 fiscal year shall be used to support the development of the plan. The proposed plan shall be submitted to the 2007 General Assembly not later than March 1, 2007.
HEALTH INFORMATION SYSTEMS (HIS) FUNDS
SECTION 10.13.(a) The sum of nine million eight hundred thirty‑five thousand seven hundred ninety‑five dollars ($9,835,795) is appropriated from Budget Code 24430, Fund Code 2117, to the Department of Health and Human Services, Division of Public Health, for the 2006‑2007 fiscal year. These funds shall be used for the development and implementation of the Health Information Systems (HIS), an initiative that will provide an automated means of capturing, monitoring, reporting, and billing services provided in local health departments, CDSAs, and the State Public Health Lab. The HIS will allow for interfaces to local health departments' own vendor systems and is intended to replace the outdated Health Services Information System. Allocation of these funds is contingent upon full compliance with the reporting requirements of Section 10.59A.(b) of S.L. 2005‑276 and the identification of total estimated costs and future funding sources.
SECTION 10.13.(b) The Department of Health and Human Services, Division of Public Health, shall report on the use of these funds to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division not later than March 1, 2007.
SECTION 10.14. Section 10.59F of S.L. 2005‑276 (as amended by Section 20 of S.L. 2005‑345), G.S. 130A‑440.1, and Part 34 of Article 3 of Chapter 143B of the General Statutes are repealed.
EARLY INTERVENTION SERVICES REPORT
SECTION 10.15. The Department of Health and Human Services, Division of Public Health, shall report on Early Intervention services. The report shall include the following information for all children, ages birth to three years, entering the Early Intervention system as of July 1, 2006, through December 31, 2006:
(1) Children served: the number of children referred and the source of referral, the number of children receiving initial evaluations, the number of children determined eligible, the number of children enrolled, and the number of IFS Plans developed.
(2) Services provided: the number and types of evaluation services, treatment services, and other services provided and whether the service was provided by an employee of a Children's Developmental Services Agency or a private provider.
(3) Sliding scale participation: the percentage of enrolled children whose family income falls into each of the following categories: at or below 200% of the federal poverty level, between 250% and 300% of the federal poverty level, between 350% and 400% of the federal poverty level, and over 400% of the federal poverty level. These percentages shall be reported based on gross income and net income after allowable deductions.
The Division of Public Health shall report its findings and recommendations to the Senate Appropriations Committee on Health and Human Services, the House of Representative Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than February 1, 2007.
COMMUNITY HEALTH CENTER CHANGES
SECTION 10.16. Section 10.9(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.9.(a) Of
the funds appropriated in this act for Community Health Grants, the sum of two
million dollars ($2,000,000) in recurring funds for the 2005‑2006
fiscal year, and the sum of two million dollars ($2,000,000) in recurring
funds for the 2006‑2007 fiscal year shall be used for federally qualified
health centers, for those health centers that meet the criteria for federally
qualified health centers, and for State‑designated rural health centers
and public health departments and other clinics to:
(1) Increase access to preventative and primary care services by uninsured or medically indigent patients in existing or new health center locations;
(2) Establish community health center services in counties where no such services exist;
(3) Create new services or augment existing services provided to uninsured or medically indigent patients, including primary care and preventative medical services, dental services, pharmacy, and behavioral health; and
(4) Increase capacity necessary to serve the uninsured by enhancing or replacing facilities, equipment, or technologies.
Grant funds may not be used to enhance or increase compensation or other benefits of personnel, administrators, directors, consultants, or any other parties. Grant funds may not be used to supplant federal funds traditionally received by federally qualified community health centers and may not be used to finance or satisfy any existing debt. The Department of Health and Human Services shall distribute funds on the basis of the availability of other funds for the agency, and also on the basis of incidence of poverty or percentage of indigent clients served. Grant applicants must provide after‑hours access in order to qualify for grant funds. The Department shall give preference to those grant applicants demonstrating collaboration with the applicant's community hospital."
EDUCATION ON PREVENTION OF PRETeRM BIRTHS
SECTION 10.17. Of the funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, the sum of one hundred fifty thousand dollars ($150,000) for the 2006‑2007 fiscal year shall be used to provide education to women on the benefits of progesterone for those who have had preterm births and to purchase medication for eligible minority and low‑income women until the medication becomes readily available through the Medicaid Program. The Division of Public Health shall evaluate the impact of the use of these funds and shall share the outcomes of the evaluation with the Division of Medical Assistance, 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.
COMMUNITY‑FOCUSED ELIMINATING HEALTH DISPARITIES INITIATIVE
AUTHORIZE ONE NEW POSITION FOR HEALTHY CAROLINIANS INITIATIVE
SECTION 10.18A. The Department of Health and Human Services, Division of Public Health, may use funds appropriated for the 2006-2007 fiscal year to support one new position for the Healthy Carolinians Initiative.
CLARIFICATION OF CERTAIN AUDIT REQUIREMENTS
SECTION 10.19. G.S. 143B‑139.4.(b) reads as rewritten:
"(b) A private, nonprofit organization that receives employee assistance or other appropriate services in accordance with subsection (a) of this section, shall document all contributions received, including employee time, supplies, materials, equipment, and physical space. The documentation shall also provide an estimated value of all contributions received as well as any compensation paid to or bonuses received by State employees. This documentation shall be submitted annually to the Secretary of the Department of Health and Human Services in a format approved by the Secretary. Nonprofit organizations with less than five hundred thousand dollars ($500,000) in annual income shall submit an affidavit from the chief officer of the organization providing and attesting to the financial condition of the organization and the expenditure of funds or use of State employee services or other State services. The board of directors of each private, nonprofit organization with an annual income of five hundred thousand dollars ($500,000) or more shall secure and pay for the services of the State Auditor's Office or employ a certified public accountant to conduct an annual audit of the financial accounts of the organization. The board of directors shall transmit to the Secretary of the Department a copy of the annual financial audit report of the private nonprofit organization. Nothing in this subsection shall be construed to relieve the private, nonprofit organization from other applicable reporting requirements established by law."
SECTION 10.21. Section 10.59(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.59.(a) For
the 2005‑2006 fiscal year and for the 2006‑2007 fiscal year, HIV‑positive
individuals with incomes at or below one hundred twenty‑five percent
(125%) of the federal poverty level are eligible for participation in ADAP.
Eligibility for participation in ADAP during the 2005‑2007 fiscal
biennium shall not be extended to individuals with incomes above one hundred
twenty‑five percent (125%) of the federal poverty level.For the
2006‑2007 fiscal year, the Department may adjust the financial
eligibility criterion of the ADAP Program up to an amount not exceeding two
hundred fifty percent (250%) of the federal poverty level in order to serve as
many eligible North Carolinians living with HIV disease as possible within
existing resources plus any new federal resources. If the Department raises the
eligibility limit above one hundred twenty‑five percent (125%) of the
federal poverty level and a waiting list develops as a result, the Department
shall give priority on the waiting list to those individuals at or below one
hundred twenty‑five percent (125%) of the federal poverty level."
TECHNICAL CORRECTION TO LICENSURE FEE LIMITS
SECTION 10.22. G.S. 131E‑267 reads as rewritten:
"§ 131E‑267. Fees for departmental review of health care facility construction projects.
The Department of Health and Human
Services shall charge a fee for the review of each health care facility
construction project to ensure that project plans and construction are in
compliance with State law. The fee shall be charged on a one‑time, per‑project
basis, as follows, and shall not exceed twelve thousand five hundred dollars
($12,500)twenty‑five thousand dollars ($25,000) for any single
project:
Institutional Project Project Fee
Hospitals $ 300.00 plus $0.20/square foot of project space
Nursing Homes $ 250.00 plus $0.16/square foot of project space
Ambulatory Surgical Facility $ 200.00 plus $0.16/square foot of project space
Psychiatric Hospital $ 200.00 plus $0.16/square foot of project space
Adult Care Home
7 or more beds $ 175.00 plus $0.10/square foot of project space
Residential Project Project Fee
Family Care Homes $ 175.00 flat fee
ICF/MR Group Homes $ 275.00 flat fee
Group Homes: 1‑3 beds $ 100.00 flat fee
Group Homes: 4‑6 beds $ 175.00 flat fee
Group Homes: 7‑9 beds $ 225.00 flat fee
Other residential:
More than 9 beds $ 225.00 plus $0.075/square foot of project space."
CLARIFICATION OF FEES FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICE FACILITIES
SECTION 10.23. G.S. 122C‑23(h) reads as rewritten:
"(h) The Department
shall charge facilities licensed under this Chapter that have licensed beds 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 $0
Facilities (non‑ICF/MR):
6
of fewer
1 to 6 beds $250.00 $0
More than 6 beds $350.00 $12.50
ICF/MR
Only:
6
or fewer
1 to 6 beds $650.00 $0
More than 6 beds $650.00 $12.50"
TRANSFER ADVOCACY AND CUSTOMER SERVICE SECTION TO OFFICE OF THE SECRETARY
SECTION 10.24. The Advocacy and Customer Service Section of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services is transferred to the Office of the Secretary of the Department of Health and Human Services. The transfer has the elements of a Type I transfer as defined in G.S. 143A‑6. In addition to its other responsibilities, the Advocacy and Customer Service Section shall assume and carry out the requirements of the Consumer Advocacy Program as established under Article 1A of Chapter 122C of the General Statutes.
AUTHORIZE LOCAL MANAGEMENT ENTITIES TO TRANSFER FUNDS BETWEEN AGE AND DISABILITY CATEGORIES
SECTION 10.25.(a) Notwithstanding G.S. 143‑23, an area authority or a county program may transfer from one age or disability category to a different age or disability category up to fifteen percent (15%) of the funds initially allocated to the age or disability category from which funds are being transferred. Prior to the transfer, the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall verify that the transfer meets applicable federal requirements. Area authorities and county programs shall:
(1) Publicly document that they have addressed the service needs of the category from which the funds are being transferred before any transfer may occur, and
(2) Submit the required documentation to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and to the Fiscal Research Division within 15 days of making the transfer.
SECTION 10.25.(b) This section expires July 1, 2007.
AREA AUTHORITY AND COUNTY PROGRAM CRISIS REGIONS
SECTION 10.26.(a) Using funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and allocated to area authorities and county programs for this purpose, area authorities and county programs shall organize themselves into no more than 21 crisis regions based upon the existing Geriatric Specialty team configurations or other approved regions. These funds shall be allocated to each area authority or county programs on a per capita basis. The funds may be used for operational start‑up, capital, or subsidies related to developing a continuum of crisis services. No more than three percent (3%) may be spent for administrative costs. The area authorities and county program within a crisis region shall work together to identify gaps in their ability to provide a continuum of crisis services for all consumers and use the funds allocated to them to develop and implement a plan to address those needs. At a minimum, the plan must address the development over time of the following components: 24‑hour crisis telephone lines, walk‑in crisis services, mobile crisis outreach, crisis respite/residential services, crisis stabilization units, 23‑hour beds, facility‑based crisis, in‑patient crisis and transportation. Options for voluntary admissions to a secured facility must include at least one service appropriate to address the mental health, developmental disability, and substance abuse needs of adults, and the mental health, developmental disability, and substance abuse needs of children. Options for involuntary commitment to a secured facility must include at least one option in addition to admission to a State facility.
If all area authorities and county programs in a crisis region determine that a facility‑based crisis center is needed and sustainable on a long‑term basis, the crisis region shall attempt to secure those services through a community hospital or other community facility first. If all the area authorities and county programs in the crisis region determine the region's crisis needs are being met, the area authorities and county programs may use the funds to meet local crisis service needs.
SECTION 10.26.(b) Of the funds appropriated in this act for consultant services to aid local management entities and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of two hundred twenty‑five thousand dollars ($225,000) shall be used for consulting services engaged pursuant to this subsection. Each area authority and county program and each crisis region shall utilize the technical assistance of a consultant under contract with the Department of Health and Human Services to develop and implement its crisis services plan. The consultant shall assist area authorities and county programs and crisis regions to identify local and regional gaps in crisis services, identify options for providing services, implement new services, and maintain transparency and accountability for the use of funds. The crisis region or area authorities and county programs shall submit their crisis services plan to the consultant and to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (Division) for review and public comment. The crisis regions and area authorities and county programs shall consider the comments prior to submitting a final plan for implementation. Upon submission of a final plan to the Department of Health and Human Services, each crisis region, area authority, and county program will receive implementation funds. Funds not expended during the 2006‑2007 fiscal year shall not revert.
Area authorities and county programs and crisis regions shall report monthly to the consultant and to the Division regarding the use of the funds, whether there has been a reduction in the use of State psychiatric hospitals for acute admissions, and remaining gaps in local and regional crisis services. The consultant shall report regularly to the General Assembly, the Fiscal Research Division, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services regarding each crisis region's and area authorities' and county programs' proposed and actual use of the funds.
EXTEND SUNSET FOR FIRST COMMITMENT PILOT PROGRAM
SECTION 10.27. S.L. 2003‑178 reads as rewritten:
"SECTION 1. The Secretary of Health and Human Services may, upon request of a phase‑one local management entity, waive temporarily the requirements of G.S. 122C‑261 through G.S. 122C‑263 and G.S. 122C‑281 through G.S. 122C‑283 pertaining to initial (first‑level) examinations by a physician or eligible psychologist of individuals meeting the criteria of G.S. 122C‑261(a) or G.S. 122C‑281(a), as applicable, as follows:
(1) The Secretary has received a request from a phase‑one local management entity to substitute for a physician or eligible psychologist, a licensed clinical social worker, a masters level psychiatric nurse, or a masters level certified clinical addictions specialist to conduct the initial (first‑level) examinations of individuals meeting the criteria of G.S. 122C‑261(a) or G.S. 122C‑281(a). The waiver shall be implemented on a pilot‑program basis. The request from the local management entity shall be submitted as part of the entity's local business plan and shall specifically describe:
a. How the purpose of the statutory requirement would be better served by waiving the requirement and substituting the proposed change under the waiver.
b. How the waiver will enable the local management entity to improve the delivery or management of mental health, developmental disabilities, and substance abuse services.
c. How the services to be provided by the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist under the waiver are within each of these professional's scope of practice.
d. How the health, safety, and welfare of individuals will continue to be at least as well protected under the waiver as under the statutory requirement.
(2) The Secretary shall review the request and may approve it upon finding that:
a. The request meets the requirements of this section.
b. The request furthers the purposes of State policy under G.S. 122C‑2 and mental health, developmental disabilities, and substance abuse services reform.
c. The request improves the delivery of mental health, developmental disabilities, and substance abuse services in the counties affected by the waiver and also protects the health, safety, and welfare of individuals receiving these services.
d. The duties and responsibilities performed by the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist are within the individual's scope of practice.
(3) The Secretary shall evaluate the effectiveness, quality, and efficiency of mental health, developmental disabilities, and substance abuse services and protection of health, safety, and welfare under the waiver. The Secretary shall send a report on the evaluation to the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substances Abuse Services on or before July 1, 2006.
(4) The waiver granted by the
Secretary under this section shall be in effect for a period not to exceed
three years, or the period for which the requesting local management entity's
business plan is approved, whichever is shorter.until October 1, 2007.
(5) The Secretary may grant a waiver under this section to up to five local management entities that have been designated as phase‑one entities as of July 1, 2003.
(6) In no event shall the substitution of a licensed clinical social worker, masters level psychiatric nurse, or masters level certified clinical addictions specialist under a waiver granted under this section be construed as authorization to expand the scope of practice of the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist.
(7) The Department shall assure that staff performing the duties are trained and privileged to perform the functions identified in the waiver. The Department shall involve stakeholders including, but not limited to, the North Carolina Psychiatric Association, The North Carolina Nurses Association, National Association of Social Workers, The North Carolina Substance Abuse Professional Certification Board, North Carolina Psychological Association, The North Carolina Society for Clinical Social Work, and the North Carolina Medical Society in developing required staff competencies.
(8) The local management entity shall assure that a physician is available at all times to provide backup support to include telephone consultation and face‑to‑face evaluation, if necessary.
SECTION 2. This act becomes
effective July 1, 2003, and expires July 1, 2006.October 1, 2007."
CHANGES TO THE STATE PLAN FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES
SECTION 10.28.(a) G.S. 122C‑102 reads as rewritten:
"§
122C‑102. State Plan for Mental Health, Developmental Disabilities, and
Substance Abuse Services.Services; system performance measures.
(a) Purpose of State Plan. – The Department shall develop and implement a State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services. The purpose of the State Plan is to provide a strategic template regarding how State and local resources shall be organized and used to provide services. The State Plan shall be issued every three years beginning July 1, 2007. It shall identify specific goals to be achieved by the Department, area authorities, and county programs over a three‑year period of time and benchmarks for determining whether progress is being made towards those goals. It shall also identify data that will be used to measure progress towards the specified goals. In order to increase the ability of the State, area authorities, county programs, private providers, and consumers to successfully implement the goals of the State Plan, the Department shall not adopt or implement policies that are inconsistent with the State Plan without first consulting with the Joint Legislative Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services.
(b) Content of State Plan. – The State Plan shall include the following:
(1) Vision and mission of the State Mental Health, Developmental Disabilities, and Substance Abuse Services system.
(2) Organizational
structure of the Department and the divisions of the Department responsible for
managing and monitoring mental health, developmental disabilities, and
substance abuse services.
(3) Protection of client rights and consumer involvement in planning and management of system services.
(4) Provision of services to targeted populations, including criteria for identifying targeted populations.
(5) Compliance with federal mandates in establishing service priorities in mental health, developmental disabilities, and substance abuse.
(6) Description of the core services that are available to all individuals in order to improve consumer access to mental health, developmental disabilities, and substance abuse services at the local level.
(7) Service standards for the mental health, developmental disabilities, and substance abuse services system.
(8) Implementation of the uniform portal process.
(9) Strategies and schedules for implementing the service plan, including consultation on Medicaid policy with area and county programs, qualified providers, and others as designated by the Secretary, intersystem collaboration, promotion of best practices, technical assistance, outcome‑based monitoring, and evaluation.
(10) A plan for coordination of the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services with the Medicaid State Plan, and NC Health Choice.
(11) A business plan to demonstrate efficient and effective resource management of the mental health, developmental disabilities, and substance abuse services system, including strategies for accountability for non‑Medicaid and Medicaid services.
(12) Strategies and schedules for implementing a phased in plan to eliminate disparities in the allocation of State funding across county programs and area authorities by January 1, 2007, including methods to identify service gaps and to ensure equitable use of State funds to fill those gaps among all counties.
(c) State Performance Measures. – The State Plan shall also include a mechanism for measuring the State's progress towards increased performance on the following matters: access to services, consumer‑focused outcomes, individualized planning and supports, promotion of best practices, quality management systems, system efficiency and effectiveness, and prevention and early intervention. Beginning October 1, 2006, and every six months thereafter, the Secretary shall report to the General Assembly and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services on the State's progress in these performance areas."
SECTION 10.28.(b) The North Carolina Department of Health and Human Services (DHHS) shall review all State Plans for Mental Health, Developmental Disabilities, and Substance Abuse Services, implemented after July 1, 2001, and before the effective date of this act and produce a single document that contains a cumulative statement of all still applicable provisions of those Plans. This cumulative document shall constitute the State Plan until July 1, 2007.
DHHS and the Secretary shall also identify those provisions in G.S. 122C‑112.1, prior State Plans, and directives or communications by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services that must be adopted as administrative rules in order to be enforceable and undertake to adopt those rules.
SECTION 10.28.(c) Independent consultants hired by the Department from funds appropriated in this act for this purpose shall undertake the following tasks:
(1) Assist DHHS with the strategic planning necessary to develop the revised State Plan as required under G.S. 122C‑102. The State Plan shall be coordinated with local and regional crisis service plans by area authorities and county programs.
(2) Study and make recommendations to increase the capacity of DHHS to implement system reform successfully and in a manner that maintains strong management functions by area authorities and county programs at the local level.
(3) Assist the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to work with area authorities and county programs to:
a. Develop and implement five to ten critical performance indicators to be used to hold area authorities and county programs accountable for managing the mental health, developmental disabilities, and substance abuse services system. The performance system indicators shall be implemented no later than six months after the consultant's contract is awarded and in no event later than July 1, 2007.
b. Standardize the utilization management functions for Medicaid and non‑Medicaid services and for the review and approval of person‑centered plans.
c. Develop area authorities' and county programs' expertise to assume utilization management for Medicaid services. The goal shall be to have a portion of the area authorities and county programs assume that function beginning July 1, 2007, and the remainder to assume the function no later than July 1, 2009.
d. Implement other uniform procedures for the management functions of area authorities and county programs.
(4) Provide technical assistance and oversight to private service providers, area authorities, and county programs to ensure that best practices and new services are being delivered with fidelity to the service definition model.
(5) Provide ongoing and focused technical assistance to area authorities and county programs in the implementation of their administrative and management functions and the establishment and operation of community‑based programs. The Secretary shall include in the State Plan a mechanism for monitoring the Department's success in implementing this duty and the progress of area authorities and county programs in achieving these functions.
(6) Assist the Division with implementing standard forms, contracts, processes, and procedures to be used by all area authorities and county programs with other public and private service providers. These processes and procedures shall include standardized denial codes and a standard policy regarding the coordination of benefits. The independent consultant shall consult with area authorities and county programs regarding the development of these forms, contracts, processes, and procedures. Any document or process developed under this subdivision shall place an obligation upon providers to transmit to area authorities and county programs timely client information and outcome data. The independent consultant shall also recommend language regarding what constitutes a clean claim for purposes of billing. When implementing this subdivision, the independent consultant shall balance the need for area authorities and county programs to exercise discretion in the discharge of their management responsibilities with the need of private service providers for a uniform system of doing business with public entities. The independent consultant shall also (i) identify other areas of standardization that may be implemented without undermining the authority of area authorities and county programs, and (ii) identify and eliminate processes and procedures that are duplicative or result in unnecessary paperwork.
FACILITY LICENSURE REQUIREMENTS FOR OUTPATIENT SUBSTANCE ABUSE SERVICES CONSISTENT WITH FACILITY LICENSURE REQUIREMENTS FOR OUTPATIENT Mental health AND Developmental disability SERVICES
SECTION 10.29. G.S. 122C‑3(14) reads as rewritten:
"§ 122C‑3. Definitions.
As used in this Chapter, unless another meaning is specified or the context clearly requires otherwise, the following terms have the meanings specified:
…
(14) "Facility" means any person at one location whose primary purpose is to provide services for the care, treatment, habilitation, or rehabilitation of the mentally ill, the developmentally disabled, or substance abusers, and includes:
a. An "area facility", which is a facility that is operated by or under contract with the area authority or county program. For the purposes of this subparagraph, a contract is a contract, memorandum of understanding, or other written agreement whereby the facility agrees to provide services to one or more clients of the area authority or county program. Area facilities may also be licensable facilities in accordance with Article 2 of this Chapter. A State facility is not an area facility;
b. A "licensable
facility", which is a facility that provides services to individuals
who are mentally ill, developmentally disabled, or substance abusers for
one or more minors or for two or more adults. When the services offered are
provided to individuals who are mentally ill or developmentally disabled, these
These services shall be day services offered to the same individual
for a period of three hours or more during a 24‑hour period, or
residential services provided for 24 consecutive hours or more. When the
services offered are provided to individuals who are substance abusers, these
services shall include all outpatient services, day services offered to the
same individual for a period of three hours or more during a 24‑hour
period, or residential services provided for 24 consecutive hours or more. Facilities
for individuals who are substance abusers include chemical dependency
facilities;
c. A "private facility", which is a facility that is either a licensable facility or a special unit of a general hospital or a part of either in which the specific service provided is not covered under the terms of a contract with an area authority;
d. The psychiatric service of the University of North Carolina Hospitals at Chapel Hill;
e. A "residential facility", which is a 24‑hour facility that is not a hospital, including a group home;
f. A "State facility", which is a facility that is operated by the Secretary;
g. A "24‑hour facility", which is a facility that provides a structured living environment and services for a period of 24 consecutive hours or more and includes hospitals that are facilities under this Chapter; and
h. A Veterans Administration facility or part thereof that provides services for the care, treatment, habilitation, or rehabilitation of the mentally ill, the developmentally disabled, or substance abusers."
INDEDPENDENT‑ AND SUPPORTIVE‑LIVING APARTMENTS INITIATIVE
SECTION 10.30. The independent and supportive living apartments for persons with disabilities constructed from funds appropriated in this act for that purpose shall be affordable to persons with incomes at the Supplemental Security Income (SSI) level. If the North Carolina Housing Finance Agency is able to finance the apartments for less than the amount appropriated under this section, any remaining funds, as well as any interest earned on the amount appropriated, may be used to finance additional apartments, group homes, and transitional housing for individuals with disabilities.
LME FINANCIAL REPORTS TO COUNTY REVIEWED BY COUNTY FINANCE OFFICERS
SECTION 10.31.(a) G.S. 122C‑117(c) reads as rewritten:
"(c) Within 30 days of the end of each quarter of the fiscal year, the area director and finance officer of the area authority shall provide to each member of the board of county commissioners the quarterly report of the area authority. The quarterly report shall also be presented to the county finance officer for review and comment. The clerk to the board of commissioners shall notify the area director and finance officer if it has not received the quarterly report required by this subsection.This information shall be presented in a format prescribed by the county. At least twice a year, this information shall be presented in person and shall be read into the minutes of the meeting at which it is presented. In addition, the area director or finance officer of the area authority shall provide to the board of county commissioners ad hoc reports as requested by the board of county commissioners."
SECTION 10.31.(b) Article 23 of Chapter 153A of the General Statutes is amended by adding the following new section to read:
"§ 153A‑453. Quarterly reports of Mental Health, Developmental Disabilities, and Substance Abuse Services area authority or county program.
Quarterly reports by the area director and finance officer of Mental Health, Developmental Disabilities, and Substance Abuse Services area authorities or county programs shall be submitted to the county finance officer as provided under G.S. 122C‑117(c)."
LOCAL MANAGEMENT ENTITY ADMINISTRATIVE FUNCTIONS
SECTION 10.32. The Department of Health and Human Services shall recalculate local management entity (LME) systems management allocations for fiscal year 2006‑2007 to include funds for each LME to implement 24‑hour, seven days a week screening, triage, and referral, and to review, monitor, and comment on all person‑centered plans. The Department shall allocate funds appropriated in this act for this purpose to LMEs to implement the functions described in this section.
PORTION OF PROCEEDS FROM ALCOHOL EXCISE TAX DEPOSITED TO TRUST FUND FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES AND BRIDGE FUNDING NEEDS
SECTION 10.33.(a) Part 4 of Article 2C of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑113.82A. Distribution to the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs.
After setting aside funds for the distributions required by G.S. 105‑113.81A and G.S. 105‑113.82, the Secretary shall on a monthly basis distribute to the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs, established under G.S. 143‑15.3D, five percent (5%) of the net proceeds of the amount of excise taxes collected under this Article on malt beverages, unfortified wine, fortified wine, and spirituous liquor."
SECTION 10.33.(b) This section becomes effective July 1, 2006, and applies to taxes collected on or after that date.
DISTRIBUTION OF MENTAL HEALTH AND SUBSTANCE ABUSE SERVICES FUNDS
SECTION 10.33A. Funds appropriated in this act for mental health services and substance abuse services 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.
DEPARTMENT'S DUTY TO PROVIDE TECHNICAL ASSISTANCE TO AREA AUTHORITIES AND COUNTY PROGRAMS
SECTION 10.33B. G.S. 122C-112.1(a)(9) reads as rewritten:
"§ 122C‑112.1. Powers and duties of the Secretary.
(a) The Secretary shall do all of the following:
…
"(9) Assist Provide
ongoing and focused technical assistance to area authorities and county
programs in the implementation of their administrative and management
functions and the establishment and operation of community‑based
programs. The Secretary shall include in the State Plan a mechanism for
monitoring the Department's success in implementing this duty and the progress
of area authorities and county programs in achieving these functions."
STRENGTHEN LOCAL MANAGEMENT ENTITIES
SECTION 10.33C.(a) G.S. 122C-3 is amended by adding the following new subdivision to read:
"§ 122C‑3. Definitions.
As used in this Chapter, unless
another meaning is specified or the context clearly requires otherwise, the
following terms have the meanings specified:The following definitions
apply in this Chapter:
…
(20b) "Local management entity" or "LME" means an area authority, county program, or consolidated human services agency."
SECTION 10.33C.(b) G.S. 122C‑111 reads as rewritten:
"§ 122C‑111. Administration.
The Secretary shall administer and
enforce the provisions of this Chapter and the rules of the Commission and
shall operate State facilities. An area director or program director shall (i)
manage the public mental health, developmental disabilities, and substance
abuse system for administer the programs of the area authority or
county program, as applicable, program according to the local
business plan, and (ii) enforce applicable State laws, rules of the
Commission, and rules of the Secretary. The Secretary in cooperation with area
and county program directors and State facility directors shall provide for the
coordination of public services between area authorities, county programs, and
State facilities. The area authority or county program shall monitor the
provision of mental health, developmental disability, and substance abuse
services for compliance with the law, which monitoring shall not supersede or
duplicate the regulatory authority or functions of agencies of the Department."
SECTION 10.33C.(c) G.S. 122C‑115.2(a) reads as rewritten:
"§
122C‑115.2. Business LME business plan required; content,
process, certification.
(a) Every county, through an
area authority or county program, shall provide for the development,
review, and approval of a an LME business plan for the management
and delivery of mental health, developmental disabilities, and substance abuse
services. A An LME business plan shall provide detailed
information on how the area authority or county program will meet State
standards, laws, and rules for ensuring quality mental health, developmental
disabilities, and substance abuse services, including outcome measures for
evaluating program effectiveness. The business plan shall be in effect for at
least three State fiscal years."
SECTION 10.33C.(d) Article 4 of Chapter 122C is amended by adding a new section to read:
"§ 122C‑115.4. Responsibilities of local management entities.
(a) Local management entities are responsible for the administration and management of the public system of mental health, developmental disabilities, and substance abuse services at the community level. An LME plans, develops, implements, and monitors services within a specified geographic area for both insured and uninsured individuals.
(b) The core functions of an LME include all of the following:
(1) Access for all citizens to core services through the implementation of a 24‑hour a day, seven‑day a week screening, triage, and referral process and a uniform portal of entry into care.
(2) Provider endorsement, monitoring, technical assistance, and capacity development. An LME may remove as a choice a provider who fails to meet defined quality criteria or fails to provide data required for monitoring client outcomes.
(3) Utilization review and determination of the appropriate level and intensity of services for all State‑funded services, authorization of recipients of services under a Medicaid waiver, review and approval of all person‑centered plans, utilization management for all services, care coordination, quality management, and authorization of State psychiatric hospital and other State facility bed days.
(4) Community collaboration and consumer affairs including assurance of rights, appeals, establishment of, and support for an effective consumer and family advisory committee.
(5) Financial management and accountability including information management for the delivery of publicly funded services for mental illness, developmental disabilities, and substance abuse.
(c) An area authority or county program may contract with any public or private entity for the implementation of some or all of the LME responsibilities articulated under this section. A consolidated human services agency may contract with any public or private entity for the implementation of some or all of the LME responsibilities subject to the requirements of G.S. 122C‑127. The Secretary may remove one or more of the responsibilities enumerated under subsection (b) of this section only after the Secretary has made an individualized finding that a particular area authority or county program is not providing minimally adequate services under G.S. 122C‑124.1 or is in imminent danger of failing financially under G.S. 122C‑125. The notice and procedural requirements of G.S. 122C‑124.1 and G.S. 122C‑125 shall apply to the findings."
SECTION 10.33C.(e) G.S. 122C‑118.1 reads as rewritten:
"§ 122C‑118.1. Structure of area board.
(a) An area board shall have
no fewer than 11 and no more than 25 members. In a single‑county area
authority, the members shall be appointed by the board of county commissioners.
Except as otherwise provided, in areas consisting of more than one county, each
board of county commissioners within the area shall appoint one commissioner as
a member of the area board. These members shall appoint the other members. The
boards of county commissioners within the multicounty area shall have the
option to appoint the members of the area board in a manner other than as
required under this section by adopting a resolution to that effect. The boards
of county commissioners in a multicounty area authority shall indicate in the
business plan each board's method of appointment of the area board members in
accordance with G.S. 122C‑115.2(b). These appointments shall take
into account sufficient citizen participation, equitable representation
of the disability groups, and equitable representation of participating
counties. Individuals appointed to the board shall include an individual with
financial expertise or expertise, a county finance officer, an
individual with expertise in management or business, and an individual
representing the interests of children. A member of the board may be removed
with or without cause by the initial appointing authority. Vacancies on the
board shall be filled by the initial appointing authority before the end of the
term of the vacated seat or within 90 days of the vacancy, whichever occurs
first, and the appointments shall be for the remainder of the unexpired term.
(b) At least Not
more than fifty percent (50%) of the members of the area board shall
represent the following:
(1) A physician licensed under Chapter 90 of the General Statutes to practice medicine in North Carolina who, when possible, is certified as having completed a residency in psychiatry.
(2) A clinical professional from the fields of mental health, developmental disabilities, or substance abuse.
(3) A At least one family
member or an individual from a citizens' organizations organization
composed primarily of consumers or their family members, representing the
interests of individuals:
a. With mental illness; and
b. In recovery from
addiction; and or
c. With developmental disabilities.
(4) Openly At least
one openly declared consumers:consumer:
a. With mental illness; and
b. With developmental disabilities;
and disabilities; or
c. In recovery from addiction.
(c) The board of county commissioners may elect to appoint a member of the area authority board to fill concurrently more than one category of membership if the member has the qualifications or attributes of more than one category of membership.
(d) Any member of an area
board who is a county commissioner serves on the board in an ex officio
capacity. The terms of county commissioners on an area board are concurrent
with their terms as county commissioners. The terms of the other members on the
area board shall be for four three years, except that upon the
initial formation of an area board one‑fourth one‑third shall
be appointed for one year, one‑fourth one‑third for
two years, one‑fourth for three years, and all remaining members
for four three years. Members other than county commissioners shall
not be appointed for more than two consecutive terms. Board members serving
as of July 1, 2006, may remain on the board for one additional term.
(e) Upon request, the board shall provide information pertaining to the membership of the board that is a public record under Chapter 132 of the General Statutes."
SECTION 10.33C.(f) G.S. 122C‑115.1(g) reads as rewritten:
"(g) In a single‑county
program, an advisory committee shall be appointed by the board of county
commissioners and shall report to the county manager. The appointments shall
take into account sufficient citizen participation, equitable representation of
the disability groups, and equitable representation of participating counties. At
least fifty percent (50%) of the The membership shall conform to the
requirements in G.S. 122C‑118.1(b)(1)‑(4). G.S. 122C‑118.1.
In a multicounty program, the advisory committee shall be appointed in
accordance with the terms of the interlocal agreement."
SECTION 10.33C.(g) G.S. 153A‑149(c)(22) reads as rewritten:
"(c) Each county may levy property taxes for one or more of the purposes listed in this subsection up to a combined rate of one dollar and fifty cents ($1.50) on the one hundred dollars ($100.00) appraised value of property subject to taxation. Authorized purposes subject to the rate limitation are:
…
(22) Mental Health. – To
provide for the county's share of the cost of maintaining and administering
services offered by by, to, or through the area mental health,
developmental disabilities, and substance abuse authority. authority
or the county program for mental health, developmental disabilities, and
substance abuse services."
SECTION 10.33C.(h) G.S. 153A‑247 reads as rewritten:
"§ 153A‑247. Provision for public health and mental health.
A county may provide for and
regulate the public health pursuant to under Chapter 130A of the
General Statutes and any other law authorizing local public health activities
and may provide mental health[,] mental retardation, health,
developmental disabilities, and substance abuse programs pursuant to
Chapter 122C of the General Statutes.programs."
SECTION 10.33C.(i) G.S. 122C‑141 is amended by adding a new subsection to read:
"(d) A county may be a qualified public provider and may, under Article 20 of Chapter 160A of the General Statutes, enter into an interlocal agreement with one or more other counties to operate as a qualified public provider."
SECTION 10.33C.(j) G.S. 122C‑112.1(a) reads as rewritten:
"§ 122C‑112.1. Powers and duties of the Secretary.
(a) The Secretary shall do all of the following:
(1) Oversee development of the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services.
(2) Enforce the provisions of this Chapter and the rules of the Commission and the Secretary.
(3) Establish a process and criteria for the submission, review, and approval or disapproval of LME business plans submitted by area authorities and counties for the management and provision of mental health, developmental disabilities, and substance abuse services.
(4) Adopt rules specifying the content and format of LME business plans.
(5) Review business plans
and, upon approval of the LME business plan, certify the submitting area
authority or county program to provide mental health, developmental
disabilities, and substance abuse services.services in the applicable
catchment area.
(6) Establish comprehensive, cohesive oversight and monitoring procedures and processes to ensure continuous compliance by area authorities, county programs, and all providers of public services with State and federal policy, law, and standards. Procedures shall include performance measures and report cards for each area authority and county program.
(7) Conduct regularly scheduled monitoring and oversight of area authority, county programs, and all providers of public services. Monitoring and oversight shall include compliance with the program business plan, core administrative functions, and fiscal and administrative practices and shall also address outcome measures, consumer satisfaction, client rights complaints, and adherence to best practices.
(8) Make findings and recommendations based on information and data collected pursuant to subdivision (7) of this subsection and submit these findings and recommendations to the applicable area authority board, county program director, board of county commissioners, providers of public services, and to the Local Consumer Advocacy Office.
(9) Assist area authorities and county programs in the establishment and operation of community‑based programs.
(10) Operate State facilities and adopt rules pertaining to their operation.
(11) Develop a unified system
of services provided in area, county, and at the community level, by State
facilities, and by providers enrolled or under a contract with the State.State
and an area authority or county program.
(12) Adopt rules governing the expenditure of all funds for mental health, developmental disabilities, and substance abuse programs and services.
(13) Adopt rules to implement the appeal procedure authorized by G.S. 122C‑151.2.
(14) Adopt rules for the implementation of the uniform portal process.
(15) Except as provided in G.S. 122C‑26(4), adopt rules establishing procedures for waiver of rules adopted by the Secretary under this Chapter.
(16) Notify the clerks of superior court of changes in the designation of State facility regions and of facilities designated under G.S. 122C‑252.
(17) Promote public awareness and understanding of mental health, mental illness, developmental disabilities, and substance abuse.
(18) Administer and enforce rules that are conditions of participation for federal or State financial aid.
(19) Carry out G.S. 122C‑361.
(20) Monitor the fiscal and
administrative practices of area authorities and county programs to ensure that
the programs are accountable to the State for the management and use of federal
and State funds allocated for mental health, developmental disabilities, and
substance abuse services. The Secretary shall ensure maximum accountability by
area authorities and county programs for rate‑setting
methodologies, reimbursement procedures, billing procedures, provider
contracting procedures, record keeping, documentation, and other matters
pertaining to financial management and fiscal accountability. The Secretary
shall further ensure that the practices are consistent with professionally
accepted accounting and management principles.
(21) Provide technical assistance, including conflict resolution, to counties in the development and implementation of area authority and county program business plans and other matters, as requested by the county.
(22) Develop a methodology to be used for calculating county resources to reflect cash and in‑kind contributions of the county.
(23) Adopt rules establishing program evaluation and management of mental health, developmental disabilities, and substance abuse services.
(24) Adopt rules regarding the requirements of the federal government for grants‑in‑aid for mental health, developmental disabilities, or substance abuse programs which may be made available to area authorities or county programs or the State. This section shall be liberally construed in order that the State and its citizens may benefit from the grants‑in‑aid.
(25) Adopt rules for determining minimally adequate services for purposes of G.S. 122C‑124.1 and G.S. 122C‑125.
(26) Establish a process for approving area authorities and county programs to provide services directly in accordance with G.S. 122C‑141.
(27) Sponsor training opportunities in the fields of mental health, developmental disabilities, and substance abuse.
(28) Enforce the protection of the rights of clients served by State facilities, area authorities, county programs, and providers of public services.
(29) Adopt rules for the enforcement of the protection of the rights of clients being served by State facilities, area authorities, county programs, and providers of public services.
(30) Prior to requesting approval to close a State facility under G.S. 122C‑181(b):
a. Notify the Joint Legislative Commission on Governmental Operations, the Joint Legislative Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and members of the General Assembly who represent catchment areas affected by the closure; and
b. Present a plan for the closure to the members of the Joint Legislative Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Senate Appropriations Committee on Health and Human Services for their review, advice, and recommendations. The plan shall address specifically how patients will be cared for after closure, how support services to community‑based agencies and outreach services will be continued, and the impact on remaining State facilities. In implementing the plan, the Secretary shall take into consideration the comments and recommendations of the committees to which the plan is presented under this subdivision.
(31) Ensure that the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services"
CONSUMER AND FAMILY ADVISORY COMMITTEES ESTABLISHED BY AREA AUTHORITIES AND COUNTY PRORAMS
SECTION 10.33D. Article 4 of Chapter 122C is amended by adding a new Part to read:
"Part 4A. Consumer and Family Advisory Committees.
"§ 122C‑170. Local Consumer and Family Advisory Committees.
(a) Area authorities and county programs shall establish committees made up of consumers and family members to be known as Consumer and Family Advisory Committees (CFACS). A local CFAC shall be a self‑governing and a self‑directed organization that advises the area authority or county program in its catchment area on the planning and management of the local public mental health, developmental disabilities, and substance abuse services system.
Each CFAC shall adopt bylaws to govern the selection and appointment of its members, their terms of service, the number of members, and other procedural matters. At the request of either the CFAC or the governing board of the area authority or county program, the CFAC and the governing board shall execute an agreement that identifies the roles and responsibilities of each party, channels of communication between the parties, and a process for resolving disputes between the parties.
(b) Each of the disability groups shall be equally represented on the CFAC, and the CFAC shall reflect as closely as possible the racial and ethnic composition of the catchment area. The terms of members shall be three years, and no member may serve more than two consecutive terms. The CFAC shall be composed exclusively of:
(1) Adult consumers of mental health, developmental disabilities, and substance abuse services;
(2) Parents of minor children who are consumers of mental health, developmental disabilities, and substance abuse services; and
(3) Parents of adult children who are severely developmentally disabled.
(c) The CFAC shall undertake all of the following:
(1) Review, comment on, and monitor the implementation of the local business plan.
(2) Identify service gaps and underserved populations.
(3) Make recommendations regarding the service array and monitor the development of additional services.
(4) Review and comment on the area authority or county program budget.
(5) Participate in all quality improvement measures and performance indicators.
(6) Submit to the State Consumer and Advisory Committee findings and recommendations regarding ways to improve the delivery of mental health, developmental disabilities, and substance abuse services.
(d) The director of the area authority or county program shall provide sufficient staff to assist the CFAC in implementing its duties under subsection (c) of this section. The assistance shall include data for the identification of service gaps and underserved populations, training to review and comment on business plans and budgets, procedures to allow participation in quality monitoring, and technical advice on rules of procedure and applicable laws.
"§ 122C‑171. State Consumer and Family Advisory Committee.
(a) There is established the State Consumer and Advisory Committee (State CAFC). The State CFAC shall be shall be a self‑governing and self‑directed organization that advises the Department and the General Assembly on the planning and management of the State's public mental health, developmental disabilities, and substance abuse services system.
(b) The State CFAC shall be composed of 21 members. The members shall be composed exclusively of adult consumers of mental health, developmental disabilities, and substance abuse services; parents of minor children who are consumers of mental health, developmental disabilities, and substance abuse services; and parents of adult children who are severely developmentally disabled. The terms of members shall be three years, and no member may serve more than two consecutive terms. Vacancies shall be filled by the appointing authority. The members shall be appointed as follows:
(1) Nine by the Secretary. The Secretary's appointments shall reflect each of the disability groups. The terms shall be staggered so that terms of three of the appointees expire each year.
(2) Three by the General Assembly upon the recommendations of the President Pro Tempore of the Senate, one each of whom shall come from the three State regions for institutional services (Eastern Region, Central Region, and Western Region). The terms of the appointees shall be staggered so that the term of one appointee expires every year.
(3) Three by the General Assembly upon the recommendations of the Speaker of the House of Representatives, one each of whom shall come from the three State regions for institutional services (Eastern Region, Central Region, and Western Region). The terms of the appointees shall be staggered so that the term of one appointee expires every year.
(4) Three by the Council of Community Programs, one each of whom shall come from the three State regions for institutional services (Eastern Region, Central Region, and Western Region). The terms of the appointees shall be staggered so that the term of one appointee expires every year.
(5) Three by the North Carolina Association of County Commissioners, one each of whom shall come from the three State regions for institutional services (Eastern Region, Central Region, and Western Region). The terms of the appointees shall be staggered so that the term of one appointee expires every year.
(c) The State CFAC shall undertake all of the following:
(1) Review, comment on, and monitor the implementation of the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services.
(2) Identify service gaps and underserved populations.
(3) Make recommendations regarding the service array and monitor the development of additional services.
(4) Review and comment on the State budget for mental health, developmental disabilities, and substance abuse services.
(5) Participate in all quality improvement measures and performance indicators.
(6) Receive the findings and recommendations by local CFACs regarding ways to improve the delivery of mental health, developmental disabilities, and substance abuse services.
(7) Provide technical assistance to local CFACs in implementing their duties.
(d) The Secretary shall provide sufficient staff to assist the State CFAC in implementing its duties under subsection (c) of this section. The assistance shall include data for the identification of service gaps and underserved populations, training to review and comment on the State Plan and departmental budget, procedures to allow participation in quality monitoring, and technical advice on rules of procedure and applicable laws.
(e) State CFAC members shall receive the per diem and allowances prescribed by G.S. 138‑5 for State boards and commissions."
STRENGTHEN MH/DD/SA PRIVATE PROVIDERS
SECTION 10.33E. G.S. 122C‑142(a) reads as rewritten:
"§ 122C‑142. Contract for services.
(a) When the area authority
contracts with persons for the provision of services, the area authority it
shall use the standard contract adopted by the Secretary and shall assure
that these contracted services meet the requirements of applicable State
statutes and the rules of the Commission and the Secretary. However, an area
authority or county program may amend the contract to comply with any court‑imposed
duty or responsibility. Terms of the standard contract shall require
the area authority to monitor the contract to assure that rules and State
statutes are met. It shall also place an obligation upon the entity providing
services to provide to the area authority timely data regarding the clients
being served, the services provided, and the client outcomes. The Secretary
may shall also monitor contracted services to assure that rules
and State statutes are met."
STRENGTHEN ROLE OF JOINT LEGISLATIVE COMMISSION ON MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES
SECTION 10.33F.(a) Article 27 of Chapter 120 is amended by adding a new section to read:
"§ 120‑244. Committee authority.
The Committee may obtain information and data from all State officers, agents, agencies, and departments, while in discharge of its duties, under G.S. 120‑19, as if it were a committee of the General Assembly. The provisions of G.S. 120‑19.1 through G.S. 120‑19.4 shall apply to the proceedings of the Committee as if it were a committee of the General Assembly. Any cost of providing information to the Committee not covered by G.S. 120‑19.3 may be reimbursed by the Committee from funds appropriated to it for its continuing study."
SECTION 10.33F.(b) Article 23 of Chapter 120 of the General Statutes is repealed.
SECTION 10.33F.(c) The Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services (LOC) shall study the following issues and report its findings and recommendations to the 2007 Regular Session of the 2007 General Assembly:
(1) Mechanisms to allow area authorities and county programs to purchase bed days from the State psychiatric hospitals. The LOC shall consider options for holding area authorities and county programs accountable for their use of State psychiatric institutions, provide incentives to increase community capacity, and options for ensuring the State institutions have a sufficient funding stream to ensure quality care to patients and a stable and well-qualified workforce.
(2) Whether implementation of a Medicaid 1915(b) waiver on a statewide or expanded local basis would strengthen the ability of area authorities and county programs to manage the mental health, developmental disabilities, and substance abuse system. As part of the study, the LOC shall examine the impact of the waiver on Piedmont Behavioral Health's ability to implement its management functions including utilization management for Medicaid services, consumer satisfaction, provider monitoring, use of best practices, and any other matters the LOC determines are relevant. If the LOC determines that a Medicaid 1915(b) waiver would improve the management capacity of area authorities and county programs, it shall also examine whether it would be more appropriate to seek a statewide waiver or whether it would be both possible and advisable for additional area authorities and county programs to seek individual waivers.
(3) Whether G.S. 122C‑147.1 should be amended to modify or repeal the provisions that place funds appropriated by the General Assembly into broad age and disability categories."
SECTION 10.34. Section 10.61(c) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.61.(c) Notwithstanding subsection
(a) of this section, the Department of Health and Human Services shall allocate
up to twenty‑two million dollars ($22,000,000) in federal block grant
funds and State funds appropriated for fiscal years 2004‑20052005‑2006
and 2005‑20062006‑2007 for child care services. These
funds shall be allocated to prevent termination of child care services."
SECTION 10.35. Section 10.62(e) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.62.(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 unsubsidized
privately paying 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."
PART XI. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
Conservation reserve enhancement program
SECTION 11.1. Funds appropriated to the Department of Environment and Natural Resources for the 2006‑2007 fiscal year for the Division of Soil and Water Conservation for the Conservation Reserve Enhancement Program for acquiring conservation easements and leases or for contracts under the Program shall not revert, but shall remain available for these purposes.
SECTION 11.2. Of the funds appropriated in this act to the Department of Environment and Natural Resources, the sum of two million five hundred thousand dollars ($2,500,000) for the 2006‑2007 fiscal year shall be for the Division of Aquariums for the operations of the Division of Aquariums of the Department of Environment and Natural Resources. These funds are in addition to the funding the Division of Aquariums receives from departmental receipts, and the Department of Environment and Natural Resources may use these funds to shift funding for operations of the Division from receipt‑support to General Fund support.
Grassroots Science Program
SECTION 11.3. Section 12.5 of S.L. 2005‑276, as amended by Section 23 of S.L. 2005‑345, reads as rewritten:
"SECTION 12.5.(a)
Of the funds appropriated in this act to the Department of Environment and
Natural Resources for the Grassroots Science Program, the sum of three million
one hundred ninety‑seven thousand seven hundred sixty‑two dollars
($3,197,762) for the 2005‑2006 fiscal year and the sum of three
million eight hundred sixty‑three thousand seven hundred dollars ($3,863,700)
for the 2006‑2007 fiscal year is allocated as grants‑in‑aid
for each fiscal year as follows:
2005‑2006 2006‑2007
Aurora Fossil Museum $59,057 $62,593
Cape Fear Museum $161,007 $195,926
Carolina Raptor Center $112,174 $126,878
Catawba Science Center $133,429 $181,452
The Children's Museum of Iredell County $65,424
Colburn
Gem and Mineral Museum, Inc.Earth Science
Museum, Inc. $74,545 $82,856
Discovery Place $662,865 $845,882
Eastern NC Regional Science Center $50,000 $51,094
Port
Discover: Northeastern North Carolina's $50,000
Center
for Hands‑On Science, Inc.
Fascinate‑U $80,742 $92,389
Granville County Museum Commission,
Inc.–Harris Gallery $56,422 $58,079
Greensboro Children's Museum $135,076 $142,558
The Health Adventure Museum of Pack
Place Education, Arts and
Science Center, Inc. $134,499 $194,079
Highlands Nature Center $79,268 $83,826
Imagination Station $86,034 $95,505
Kidsenses $50,000 $92,676
Museum of Coastal Carolina $74,192 $80,207
The Natural Science Center of
GreensboroGreensboro,
Inc.
$186,354
$218,069
North Carolina Museum of Life
and Science $379,826 $432,752
Port Discover: Northeastern North Carolina's
Center for Hands‑On Science, Inc. $50,000 $50,117
Rocky Mount Children's Museum $72,254 $74,928
Schiele Museum of Natural History
and Planetarium, Inc. $229,547 $264,353
Sci Works Science Center and
Environmental Park of Forsyth County $146,499 $177,886
Western North Carolina Nature Center $112,879 $123,079
Wilmington Children's Museum $71,093 $71,093
Total $3,197,762 $3,863,700
SECTION 12.5.(b) No later than March 1, 2006, the Department of Environment and Natural Resources shall report to the Fiscal Research Division all of the following information for each museum that receives funds under this section:
(1) The operating budget for the 2004‑2005 fiscal year.
(2) The operating budget for the 2005‑2006 fiscal year.
(3) The total attendance at the museum during the 2005 calendar year.
SECTION 12.5.(c) No later than March 1, 2007, the Department of Environment and Natural Resources shall report to the Fiscal Research Division all of the following information for each museum that receives funds under this section:
(1) The operating budget for the 2005‑2006 fiscal year.
(2) The operating budget for the 2006‑2007 fiscal year.
(3) The total attendance at the museum during the 2006 calendar year."
Moratorium Imposed on New Landfills
SECTION 11.4.(a) Definitions. – The definitions set forth in G.S. 130A‑290 apply throughout this section.
SECTION 11.4.(b) Moratorium Established. – There is hereby established a moratorium on consideration of applications for a permit and on the issuance of permits for new landfills in the State. The purposes of this moratorium are to allow the State to study solid waste disposal issues in order to protect public health and the environment. The Department of Environment and Natural Resources shall not consider a permit application nor issue a permit for a new landfill for the disposal of construction or demolition waste, municipal solid waste, or industrial solid waste for a period beginning on 1 July 2006 and ending on 1 January 2008.
SECTION 11.4.(c) Exceptions. – The moratorium established by subsection (b) of this section shall not prohibit consideration of an application for or issuance of:
(1) A modification of a permit for an existing permitted landfill.
(2) A permit to expand an existing permitted landfill if the proposed facility boundary will provide no more than five years of disposal capacity.
(3) A modification of a permit to reflect a transfer of ownership of an existing permitted landfill.
(4) A modification of a permit to provide for a substantial change to the waste stream described in a permit in effect as of 1 May 2006 for an existing landfill.
(5) A permit for a sanitary landfill used only to dispose of waste generated by a coal‑fired generating unit that is owned or operated by an investor‑owned utility subject to the requirements of G.S. 143‑215.107D.
(6) A permit for a sanitary landfill determined to be necessary by the Secretary in order to respond to an imminent hazard to public health or a natural disaster.
SECTION 11.4.(d) Study. – The Environmental Review Commission, with the assistance of the Division of Waste Management of the Department of Environment and Natural Resources, shall study issues related to solid waste. The Commission shall specifically study measures concerning:
(1) Financial responsibility requirements for solid waste landfills, including the application of requirements to limited liability companies and other business entity structures of applicants seeking solid waste landfill permits.
(2) Application of franchise requirements and local government approval for solid waste landfill permits, including adequacy of public notice and comment, community studies, and site designations prior to local government approval.
(3) Siting, design, and operational requirements for landfills for the disposal of construction or demolition waste, municipal solid waste, or industrial solid waste that are proposed in areas susceptible to flooding from natural disasters, areas with high water tables, and other environmentally sensitive areas.
(4) Traffic considerations for proposed landfills.
(5) Regulatory oversight and staffing for permitting and compliance of solid waste landfills, and inspection of waste containers on barges, railways, and trucks.
(6) Compliance with statutory prohibitions on disposal of certain types of solid waste and measures to prevent disposal of hazardous waste in solid waste and construction and demolition landfills.
(7) Ways to reduce the amount of solid waste disposed of within North Carolina landfills, including statewide tipping fees, bans on the disposal of certain types of waste in landfills, more aggressive recycling requirements, and enhanced regulatory requirements for landfills and other solid waste management facilities.
SECTION 11.4.(e) Subcommittee. – In order to facilitate the conduct of this study, the Cochairs of the Environmental Review Commission may establish a subcommittee of the Commission. The subcommittee of the Commission may include nonlegislative members who have special knowledge, interest, or expertise in various aspects of solid waste management, appointed in consultation with the President Pro Tempore of the Senate and the Speaker of the House of Representatives.
SECTION 11.4.(f) Report. – The Commission shall report its findings, together with any recommended legislation, to the 2007 Regular Session of the 2007 General Assembly upon its convening.
SECTION 11.4.(g) This section is effective when this act becomes law.
PART XII. DEPARTMENT OF COMMERCE
SECTION 12.1. Section 13.4 of S.L. 2005‑276 reads as rewritten:
"SECTION 13.4.(a)
Funds from the Employment Security Commission Reserve Fund shall be available
to the Employment Security Commission to use as collateral to secure federal
funds and to pay the administrative costs associated with the collection of the
Employment Security Commission Reserve Fund surcharge. The total administrative
costs paid with funds from the Reserve shall not exceed the total
administrative costs paid in fiscal year 2004‑2005.2005‑2006.
SECTION 13.4.(b) There is
appropriated from the Employment Security Commission Reserve Fund to the
Employment Security Commission of North Carolina the sum of six million three
hundred thousand dollars ($6,300,000) for the 2005‑20062006‑2007
fiscal year to be used for the following purposes:
(1) Six million dollars ($6,000,000) for the operation and support of local offices.
(2) Two hundred thousand dollars ($200,000) for the State Occupational Information Coordinating Committee to develop and operate an interagency system to track former participants in State education and training programs.
(3) One hundred thousand dollars ($100,000) to maintain compliance with Chapter 96 of the General Statutes, which directs the Commission to employ the Common Follow‑Up Management Information System to evaluate the effectiveness of the State's job training, education, and placement programs."
ONE NORTH CAROLINA FUND
SECTION 12.2. Section 13.6(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 13.6.(a) Of
the funds appropriated in this act to the One North Carolina Fund, the
Department of Commerce may use up to three hundred thousand dollars ($300,000)
to cover its expenses in administering the One North Carolina Fund and other
economic development incentive grant programs in the 2005‑20062006‑2007
fiscal year."
EXTEND E‑NC AUTHORITY SUNSET/e‑NC AUTHORITY FUNDS AND REPORTING REQUIREMENTS
SECTION 12.3.(a) Section 4 of S.L. 2003‑425 reads as rewritten:
"SECTION 4. Sections 1
and 2 of this act become effective December 31, 2003, with the e‑NC
Authority hereby designated as the successor entity of the Rural Internet
Access Authority that will dissolve on that date, as provided by Section 5 of
S.L. 2000‑149. The remainder of this act is effective when it becomes
law. The e‑NC Authority created in this act is dissolved effective December
31, 2006. December 31, 2008. This act is repealed effective December
31, 2006.December 31, 2008. Part 2F of Article 10 of Chapter 143B of
the General Statutes and G.S. 120‑123(77), as enacted by this act,
are repealed effective December 31, 2006. December 31, 2008."
SECTION 12.3.(b) Section 13.12 of S.L. 2005‑276 reads as rewritten:
"SECTION 13.12.(a) Of
the funds appropriated in this act to the Rural Economic Development Center,
Inc., the sum of twenty million dollars ($20,000,000) for the 2005‑2006
fiscal year and the sum of twenty million dollars ($20,000,000)nineteen
million five hundred thousand dollars ($19,500,000) for the 2006‑2007
fiscal year shall be allocated as follows:
(1) To continue the North Carolina Infrastructure Program. The purpose of the Program is to provide grants to local governments to construct critical water and wastewater facilities and to provide other infrastructure needs, including technology needs, to sites where these facilities will generate private job‑creating investment. At least fifteen million dollars ($15,000,000) of the funds appropriated in this act for each year of the biennium must be used to provide grants under this Program.
(2) To provide matching grants to local governments in distressed areas and equity investments in public‑private ventures that will productively reuse vacant buildings and properties, with priority given to towns or communities with populations of less than 5,000.
(3) To provide economic development research and demonstration grants.
…
SECTION 13.12.(f) Of the
funds appropriated in this act to the Rural Economic Development Center, Inc.,
and allocated in subsection (a) of this section, the sum of five hundred
thousand dollars ($500,000) for the 2005‑2006 fiscal year and the sum
of five hundred thousand dollars ($500,000) for the 2006‑2007 fiscal year
shall be allocated to the e‑NC Authority.
The e‑NC Authority may contract with other State agencies, The University of North Carolina, the North Carolina Community College System, and nonprofit organizations to assist with program development and the evaluation of program activities.
The e‑NC Authority shall report to the 2006 General Assembly on the following:
(1) The activities necessary to be undertaken in distressed urban areas of the State to enhance the capability of citizens and businesses residing in these areas to access the high‑speed Internet.
(2) An implementation plan for the training of citizens and businesses in distressed urban areas.
(3) The technology and digital literacy training necessary to assist citizens and existing businesses to create new technology‑based enterprises in these communities and to use the Internet to enhance the productivity of their businesses.
The e‑NC Authority shall, by January 31, 2006, and quarterly thereafter, report to the Joint Legislative Commission on Governmental Operations on program development and the evaluation of program activities."
SECTION 12.3.(c) Of the funds appropriated in this act to the Department of Commerce, the sum of five hundred thousand dollars ($500,000) shall be allocated to the e‑NC Authority.
The e‑NC Authority may contract with other State agencies, The University of North Carolina, the North Carolina Community College System, and nonprofit organizations to assist with program development and the evaluation of program activities.
The e‑NC Authority shall report to the 2007 General Assembly on the following:
(1) The activities necessary to be undertaken in distressed urban areas of the State to enhance the capability of citizens and businesses residing in these areas to access high‑speed Internet.
(2) An implementation plan for the training of citizens and businesses in distressed urban areas.
(3) The technology and digital literacy training necessary to assist citizens and existing businesses to create new technology‑based enterprises in these communities and to use the Internet to enhance the productivity of their businesses.
The e‑NC Authority shall, by September 30, 2006, and quarterly thereafter, report to the Joint Legislative Commission on Governmental Operations on program development and the evaluation of program activities.
COUNCIL OF GOVERNMENT FUNDS/ELECTRONIC TRANSFER
SECTION 12.4. Section 13.2(c) of S.L. 2005‑276 reads as rewritten:
ADVANCED VEHICLE RESEARCH CENTER REPORTING REQUIREMENTS/FUNDS SHALL NOT REVERT
SECTION 12.5.(a) Section 13.8A(d) of S.L. 2005‑276 reads as rewritten:
"SECTION 13.8A.(d) By
December 31, 2005,December 31, 2006, and April 30, 2006,April
30, 2007, the Center shall report to the Governor, the Joint Legislative
Commission on Governmental Operations, and the Fiscal Research Division the
following information: (i) fiscal year 2005‑20062006‑2007
projects, objectives, and accomplishments; and (ii) fiscal year 2005‑20062006‑2007
itemized expenditures and fund sources. The April 30, 2006,April 30,
2007, report shall also contain the following: (i) fiscal year 2006‑20072007‑2008
planned projects, objectives, and accomplishments; and (ii) fiscal year 2006‑20072007‑2008
estimated expenditures and fund sources."
SECTION 12.5.(b) Funds appropriated to the Advanced Vehicle Research Center Reserve for the 2005‑2006 fiscal year for the Advanced Vehicle Research Center of North Carolina, Inc., that are unexpended and unencumbered as of June 30, 2006, shall not revert to the General Fund on June 30, 2006, but shall remain available in the Reserve.
SECTION 12.5.(c) Subsection (b) of this section becomes effective June 30, 2006.
WANCHESE SEAFOOD INDUSTRIAL PARK/OREGON INLET FUNDS
SECTION 12.6. Section 13.1 of S.L. 2005‑276 reads as rewritten:
"SECTION 13.1.(a) Funds
appropriated to the Department of Commerce for the 2004‑20052005‑2006
fiscal year for the Wanchese Seafood Industrial Park that are unexpended and
unencumbered as of June 30, 2005,June 30, 2006, shall not revert
to the General Fund on June 30, 2005,June 30, 2006, but shall
remain available to the Department to be expended by the Wanchese Seafood
Industrial Park for operations, maintenance, repair, and capital improvements
in accordance with Article 23C of Chapter 113 of the General Statutes.
SECTION 13.1.(b) Funds
appropriated to the Department of Commerce for the 2004‑20052005‑2006
fiscal year for the Oregon Inlet Project that are unexpended and unencumbered
as of June 30, 2005,June 30, 2006, shall not revert to the
General Fund on June 30, 2005.June 30, 2006.
SECTION 13.1.(c) This
section becomes effective June 30, 2005.June 30, 2006."
DEPARTMENT OF COMMERCE/REPORT ON AGRIBUSINESS FUNDS
SECTION 12.7.(a) The Department of Commerce (Department) shall report on all funds available for companies or organizations designed to promote agribusiness in North Carolina. The report shall include the following: (i) information on all Department economic incentive funds, including Commerce State Aid funds; and (ii) information on the number of agribusinesses and organizations that applied for State funds through the Department or other organizations, including the number of requests for funds, the amount of funds requested, and whether the requests were awarded or denied.
SECTION 12.7.(b) In the report, the Department shall make recommendations for the development of economic incentive programs designed specifically for agribusinesses. The report shall include a plan to implement the programs recommended and the estimated cost of the programs. In determining the estimated cost of the programs, the Department shall consider and include all sources of funding, including federal, State, local, and grant funds.
SECTION 12.7.(c) The Department shall collaborate with the Department of Agriculture and Consumer Services, the Rural Economic Development Center, Inc., and the University System, in preparing the report.
SECTION 12.7.(d) The Department shall submit the report to the House Appropriations Committee on Environment, Health, and Natural Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division no later than May 1, 2007.
PART XIII. department of labor
REPEAL FEE FOR MINE SAFETY EDUCATION/TRAINING PROGRAMS
SECTION 13.1. G.S. 74‑24.16(d) is repealed.
COLLECTION OF WORTHLESS CHECK FUNDS
SECTION 14.1. Notwithstanding the provisions of G.S. 7A‑308(c), the Judicial Department may use any balance remaining in the Collection of Worthless Checks Fund on June 30, 2006, for the purchase or repair of office or information technology equipment during the 2006‑2007 fiscal year. Prior to using any funds under this section, the Judicial Department shall report to the Joint Legislative Commission on Governmental Operations and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety on the equipment to be purchased or repaired and the reasons for the purchases.
SECTION 14.2. The Judicial Department may use up to the sum of one million two hundred fifty thousand dollars ($1,250,000) from funds available to the Department to provide the State match needed in order to receive grant funds. Prior to using funds for this purpose, the Department shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Commission on Governmental Operations on the grants to be matched using these funds.
PROVIDE ADDITIONAL ASSISTANT DISTRICT ATTORNEYS
SECTION 14.3.(a) G.S. 7A‑60(a1) reads as rewritten:
"(a1) The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full‑time assistant district attorneys set forth in the following table:
No. of Full‑Time
Prosecutorial Asst. District
District Counties Attorneys
1
Camden, Chowan,
Currituck,
10 11
Dare, Gates, Pasquotank,
Perquimans
2
Beaufort,
Hyde,
Martin,
6 7
Tyrrell, Washington
3A
Pitt
9
11
3B
Carteret,
Craven,
Pamlico
10 11
4
Duplin,
Jones,
Onslow,
14 16
Sampson
5
New
Hanover,
Pender
14 16
6A
Halifax
4 5
6B
Bertie,
Hertford,
4 5
Northampton
7
Edgecombe,
Nash,
Wilson
16 18
8
Greene,
Lenoir,
Wayne
11 13
9
Franklin,
Granville,
11 12
Vance, Warren
9A
Person,
Caswell
4 5
10
Wake
31
38
11
Harnett,
Johnston,
Lee
14 16
12
Cumberland
18 21
13
Bladen, Brunswick,
Columbus
11 12
14
Durham
13 15
15A
Alamance
8
10
15B
Orange,
Chatham
7 9
16A
Scotland,
Hoke
5 6
16B
Robeson
10
13
17A
Rockingham
5
6
17B
Stokes,
Surry
5 7
18
Guilford
27 30
19A
Cabarrus
6
8
19B
Montgomery,
Moore,
Randolph
11 12
19C
Rowan
5
7
20A
Anson,
Richmond,
8 10
Stanly
20B
Union
7
8
21
Forsyth
17
20
22
Alexander,
Davidson,
Davie,
16 20
Iredell
23
Alleghany,
Ashe,
Wilkes,
5 7
Yadkin
24
Avery,
Madison,
Mitchell,
4 6
Watauga, Yancey
25
Burke,
Caldwell,
Catawba
15 18
26
Mecklenburg
36 49
27A
Gaston
12
14
27B
Cleveland,
9 10
Lincoln
28
Buncombe
11
13
29A
McDowell,
Rutherford
5 6
29B
Henderson, Polk,
Transylvania
6 7
30
Cherokee,
Clay,
Graham,
9 11
Haywood, Jackson, Macon,
Swain."
SECTION 14.3.(b) This section becomes effective January 1, 2007.
ADDITIONAL DISTRICT COURT JUDGESHIPS
SECTION 14.4.(a) G.S. 7A‑133(a) reads as rewritten:
"(a) Each district court district shall have the numbers of judges as set forth in the following table:
District Judges County
1 5 Camden
Chowan
Currituck
Dare
Gates
Pasquotank
Perquimans
2 4 Martin
Beaufort
Tyrrell
Hyde
Washington
3A
5
6
Pitt
3B
5
6
Craven
Pamlico
Carteret
4 8 Sampson
Duplin
Jones
Onslow
5 8 New Hanover
Pender
6A
2
3
Halifax
6B 3 Northampton
Bertie
Hertford
7 7 Nash
Edgecombe
Wilson
8 6 Wayne
Greene
Lenoir
9 4 Granville
(part of Vance
see subsection (b))
Franklin
9A 2 Person
Caswell
9B 2 Warren
(part of Vance
see subsection (b))
10
15
17
Wake
11 8 Harnett
Johnston
Lee
12 9 Cumberland
13 6 Bladen
Brunswick
Columbus
14
6
7
Durham
15A 4 Alamance
15B
4
5
Orange
Chatham
16A 3 Scotland
Hoke
16B 5 Robeson
17A 2 Rockingham
17B 4 Stokes
Surry
18
12
13
Guilford
19A 4 Cabarrus
19B
6
7
Montgomery
Moore
Randolph
19C
4
5
Rowan
20A 4 Stanly
Anson
Richmond
20B 3 Union
21 9 Forsyth
22 9 Alexander
Davidson
Davie
Iredell
23 4 Alleghany
Ashe
Wilkes
Yadkin
24 4 Avery
Madison
Mitchell
Watauga
Yancey
25
8
9
Burke
Caldwell
Catawba
26
17
18
Mecklenburg
27A
6
7
Gaston
27B
4
5
Cleveland
Lincoln
28
6
7
Buncombe
29A 3 McDowell
Rutherford
29B 4 Henderson
Polk
Transylvania
30
5
6
Cherokee
Clay
Graham
Haywood
Jackson
Macon
Swain."
SECTION 14.4.(b) The Governor shall appoint the additional district court judges for Districts 3A, 3B, 6A, 10, 14, 15B, 18, 19B, 19C, 25, 26, 27A, 27B, 28, and 30 authorized by this act, and those judges' successors shall be elected in the 2008 election for four‑year terms commencing on January 1, 2009.
SECTION 14.4.(c) This section becomes effective January 15, 2007, except as to any district court district subject to Section 5 of the Voting Rights Act of 1965, it becomes effective January 15, 2007 or the date upon which subsection (a) of this section is approved under Section 5 of the Voting Rights Act of 1965, whichever is later.
PROVIDE ADDITIONAL MAGISTRATES/ELIMINATE MAXIMUM ALLOCATION OF MAGISTRATES
SECTION 14.5. G.S. 7A‑133(c) reads as rewritten:
"(c) Each county shall have the numbers of magistrates and additional seats of district court, as set forth in the following table:
Additional
Magistrates Seats of
County
Min.
– Max.
Court
Camden
1 3
Chowan
2 3
Currituck
1 4
Dare
3 8
Gates
2 3
Pasquotank
3 5
Perquimans
2 4
Martin
4 8
Beaufort
4 8
Tyrrell
1 3
Hyde
2 4
Washington
3 4
Pitt
10 12
Farmville
Ayden
Craven
7 10
Havelock
Pamlico
2 4
Carteret
5
6 8
Sampson
6 8
Duplin
8 11
Jones
2 3
Onslow
8 14
New
Hanover
6 11
Pender
4 6
Halifax
9 14
Roanoke
Rapids,
Scotland Neck
Northampton
5 7
Bertie
4 6
Hertford
5 7
Nash
7 10
Rocky Mount
Edgecombe
4 7
Rocky Mount
Wilson
4 7
Wayne
5 12
Mount
Olive
Greene
2
3 4
Lenoir
4 10
La Grange
Granville
3 7
Vance
3 6
Warren
3 5
Franklin
3 7
Person
3 4
Caswell
2 5
Wake
12 21
Apex,
Wendell,
Fuquay‑
Varina,
Wake Forest
Harnett
7 11
Dunn
Johnston
10 12
Benson,
Clayton,
Selma
Lee
4 6
Cumberland
10 19
Bladen
4 6
Brunswick
4 9
Columbus
6 10
Tabor
City
Durham
8 13
Alamance
7
8 11
Burlington
Orange
4 11
Chapel Hill
Chatham
3 9
Siler
City
Scotland
3 5
Hoke
4 5
Robeson
8
9 16
Fairmont,
Maxton,
Pembroke,
Red Springs,
Rowland,
St. Pauls
Rockingham
4 9
Reidsville,
Eden,
Madison
Stokes
2 5
Surry
5 9
Mt.
Airy
Guilford
20 27
High Point
Cabarrus
5 9
Kannapolis
Montgomery
2
3 4
Randolph
5 10
Liberty
Rowan
5 10
Stanly
5 6
Union
4 7
Anson
4 6
Richmond
5 6
Hamlet
Moore
5 8
Southern
Pines
Forsyth
3 15
Kernersville
Alexander
2 4
Davidson
7 10
Thomasville
Davie
2 4
Iredell
4 9
Mooresville
Alleghany
1 2
Ashe
3 4
Wilkes
4 6
Yadkin
3 5
Avery
3 5
Madison
4 5
Mitchell
3 4
Watauga
4 6
Yancey
2 4
Burke
4 7
Caldwell
4 7
Catawba
6 10
Hickory
Mecklenburg
15 28
Gaston
11
12 22
Cleveland
5 8
Lincoln
4 7
Buncombe
6 15
Henderson
4 7
McDowell
3 6
Polk
3 4
Rutherford
6 8
Transylvania
2 4
Cherokee
3 4
Clay
1 2
Graham
2 3
Haywood
5 7
Canton
Jackson
3 5
Macon
3 5
Swain
2 4."
INCREASE THE PORTION OF THE GENERAL COURT OF JUSTICE COURT FEE USED FOR LEGAL SERVICES PROGRAMS
SECTION 14.6.(a) G.S. 7A‑304(a)(4) reads as rewritten:
"(4) For support of the
General Court of Justice, the sum of eighty‑five dollars and fifty cents
($85.50) in the district court, including cases before a magistrate, and the
sum of ninety‑two dollars and fifty cents ($92.50) in the superior court,
to be remitted to the State Treasurer. For a person convicted of a felony in
superior court who has made a first appearance in district court, both the
district court and superior court fees shall be assessed. The State Treasurer
shall remit the sum of one dollar and five cents ($1.05) two dollars
and five cents ($2.05) of each fee collected under this subdivision to the
North Carolina State Bar for the provision of services described in G.S. 7A‑474.4,
and ninety‑five cents ($.95) of each fee collected under this subdivision
to the North Carolina State Bar for the provision of services described in G.S. 7A‑474.19."
SECTION 14.6.(b) G.S. 7A‑305(a)(2) reads as rewritten:
"(2) For support of the
General Court of Justice, the sum of seventy‑nine dollars ($79.00) in the
superior court, except that if a case is assigned to a special superior court
judge as a complex business case under G.S. 7A‑45.3, an additional
two hundred dollars ($200.00) shall be paid upon its assignment, and the sum of
sixty‑four dollars ($64.00) in the district court except that if the case
is assigned to a magistrate the sum shall be fifty‑three dollars
($53.00). Sums collected under this subdivision shall be remitted to the State
Treasurer. The State Treasurer shall remit the sum of one dollar and five
cents ($1.05) two dollars and five cents ($2.05) of each fee
collected under this subdivision to the North Carolina State Bar for the
provision of services described in G.S. 7A‑474.4, and ninety‑five
cents ($.95) of each fee collected under this subdivision to the North Carolina
State Bar for the provision of services described in G.S. 7A‑474.19."
SECTION 14.6.(c) G.S. 7A‑306(a)(2) reads as rewritten:
"(2) For support of the
General Court of Justice the sum of forty dollars ($40.00). In addition, in
proceedings involving land, except boundary disputes, if the fair market value
of the land involved is over one hundred dollars ($100.00), there shall be an
additional sum of thirty cents (30¢) per one hundred dollars ($100.00) of
value, or major fraction thereof, not to exceed a maximum additional sum of two
hundred dollars ($200.00). Fair market value is determined by the sale price if
there is a sale, the appraiser's valuation if there is no sale, or the
appraised value from the property tax records if there is neither a sale nor an
appraiser's valuation. Sums collected under this subdivision shall be remitted
to the State Treasurer. The State Treasurer shall remit the sum of one
dollar and five cents ($1.05) two dollars and five cents ($2.05) of
each forty‑dollar ($40.00) General Court of Justice fee collected under
this subdivision to the North Carolina State Bar for the provision of services
described in G.S. 7A‑474.4."
SECTION 14.6.(d) G.S. 7A‑307(a)(2) reads as rewritten:
"(2) For support of the
General Court of Justice, the sum of forty dollars ($40.00), plus an additional
forty cents (40¢) per one hundred dollars ($100.00), or major fraction thereof,
of the gross estate, not to exceed six thousand dollars ($6,000). Gross estate
shall include the fair market value of all personalty when received, and all
proceeds from the sale of realty coming into the hands of the fiduciary, but
shall not include the value of realty. In collections of personal property by
affidavit, the fee based on the gross estate shall be computed from the
information in the final affidavit of collection made pursuant to G.S. 28A‑25‑3
and shall be paid when that affidavit is filed. In all other cases, this fee
shall be computed from the information reported in the inventory and shall be
paid when the inventory is filed with the clerk. If additional gross estate,
including income, comes into the hands of the fiduciary after the filing of the
inventory, the fee for such additional value shall be assessed and paid upon
the filing of any account or report disclosing such additional value. For each
filing the minimum fee shall be fifteen dollars ($15.00). Sums collected under
this subdivision shall be remitted to the State Treasurer. The State Treasurer
shall remit the sum of one dollar and five cents ($1.05) two dollars
and five cents ($2.05) of each forty‑dollar ($40.00) General
Court of Justice fee collected under this subdivision to the North Carolina
State Bar for the provision of services described in G.S. 7A‑474.4."
SECTION 14.6.(e) This section becomes effective July 1, 2006, and applies to fees assessed or collected on or after that date.
COLLECTION OF OFFENDER FINES AND FEES ASSESSED BY THE general court of justice
SECTION 14.7. Article 28 of Chapter 7A of the General Statutes is amended by adding a new section to read:
"§ 7A‑321. Collection of offender fines and fees assessed by the court.
(a) The Judicial Department may, in lieu of payment by cash or check, accept payment by credit card, charge card, or debit card for the fines and fees owed to the Court by offenders. The Department may pay any negotiated discount, processing fee, transaction fee, or other charge imposed by a credit card, charge card, or debit card company, or by a third‑party merchant bank, as a condition of contracting for the Department's acceptance of electronic payment. The Department may impose the fee or charge as a surcharge on the amount paid by the offender using electronic payment.
(b) In attempting to collect the fines and fees owed by offenders to the Judicial Department, the Department may:
(1) Refer an offender who owes the court for fines and fees to a reputable credit counseling agency for the purpose of assisting the offender in restructuring the debt, with the Department designated as the lead or primary creditor.
(2) Assess additional collection fees if an amount due remains unpaid after the time period allotted by the Department.
(3) Assign debt, in the form of fines and fees owed to the Department, to a collection agency after internal collection efforts have failed.
(4) Report the delinquency to agencies that assemble or evaluate credit information.
(5) Intercept tax refunds under Chapter 105A of the General Statutes, the Setoff Debt Collection Act."
SECTION 14.8.(a) G.S. 7A‑312 reads as rewritten:
"§ 7A‑312. Uniform fees for jurors; meals.
(a) A juror in the General Court of Justice including a petit juror, or a coroner's juror, but excluding a grand juror, shall receive twelve dollars ($12.00) per day, except that if any person serves as a juror for more than five days in any 24‑month period, the juror shall receive thirty dollars ($30.00) per day for each day of service in excess of five days. A grand juror shall receive twelve dollars ($12.00) per day. However, any juror may waive payment of the per diem fees provided for in this section. A juror waiving the fee may designate that the fee be used for any of various services provided in that district, as designated by the senior resident superior court judge in accordance with the provisions of subsection (b) of this section. A juror required to remain overnight at the site of the trial shall be furnished adequate accommodations and subsistence. If required by the presiding judge to remain in a body during the trial of a case, meals shall be furnished the jurors during the period of sequestration. Jurors from out of the county summoned to sit on a special venire shall receive mileage at the same rate as State employees.
(b) The senior resident superior court judge in each district may provide jurors with a choice of various services in that district to which they may designate their waived juror fees. The services designated by the senior resident superior court judge shall be human services provided either by a government agency or a charitable nonprofit corporation and may include drug treatment court client services, courthouse self‑help centers, and courthouse child care centers. The choice may also include the Crime Victims Compensation Fund and designation to a fund for the establishment of a service not yet available in that district to be provided by a governmental agency or a charitable nonprofit corporation. If the senior resident superior court judge elects not to provide jurors with a choice of human services to designate their waived fees to, or if jurors elect not to designate the fees to a particular service, the waived fees shall represent cost savings to the Judicial Department."
SECTION 14.8.(b) This section becomes effective July 1, 2006, and applies to jury service that begins on or after that date.
ESTABLISH INTERMEDIATE DEFERRED PROSECUTION FOR THE DRUG TREATMENT COURT PROGRAM
SECTION 14.9.(a) Section 14.22 of S.L. 2005‑276 is repealed.
SECTION 14.9.(b) G.S. 15A‑1341(a2) reads as rewritten:
"(a2) Deferred Prosecution for Purpose of Drug Treatment Court Program. – A defendant eligible for a Drug Treatment Court Program pursuant to Article 62 of Chapter 7A of the General Statutes may be placed on probation if the court finds that prosecution has been deferred by the prosecutor, with the approval of the court, pursuant to a written agreement with the defendant, for the purpose of allowing the defendant to participate in and successfully complete the Drug Treatment Court Program. A defendant who would be eligible for deferred prosecution but for a prior criminal conviction may participate in the Drug Treatment Court Program by executing a local drug treatment court contract, by being placed on supervised probation, and by submitting to any of the following additional conditions the court may require:
(1) Special probation as defined in G.S. 15A‑1351(a);
(2) Assignment to a residential program;
(3) House arrest with electronic monitoring;
(4) Intensive probation; or
(5) Assignment to a day‑reporting center."
SECTION 14.9.(c) G.S. 7A‑796 reads as rewritten:
"§ 7A‑796. Local drug treatment court management committee.
Each judicial district choosing to establish a drug treatment court shall form a local drug treatment court management committee, which shall be comprised to assure representation appropriate to the type or types of drug treatment court operations to be conducted in the district and shall consist of persons appointed by the senior resident superior court judge with the concurrence of the chief district court judge and the district attorney for that district, chosen from the following list:
(1) A judge of the superior court;
(2) A judge of the district court;
(3) A district attorney or assistant district attorney;
(4) A public defender or assistant public defender in judicial districts served by a public defender;
(5) An attorney representing a county department of social services within the district;
(6) A representative of the guardian ad litem;
(7) A member of the private criminal defense bar;
(8) A member of the private bar who represents respondents in department of social services juvenile matters;
(9) A clerk of superior court;
(10) The trial court administrator in judicial districts served by a trial court administrator;
(11) The director or member of the child welfare services division of a county department of social services within the district;
(12) The chief juvenile court counselor for the district;
(13) A probation officer;
(14) A local law enforcement officer;
(15) A representative of the local school administrative unit;
(16) A representative of the local community college;
(17) A representative of the treatment providers;
(18) A representative of the area mental health program;
(19) The local program director provided for in G.S. 7A‑798; and
(20) Any other persons selected by the local management committee.
The local drug treatment court
management committee shall develop local guidelines and procedures, not
inconsistent with the State guidelines, procedures that are
necessary for the operation and evaluation of the local drug treatment court.
courts in accordance with the National Drug Court Institute's "Ten Key
Components" for drug treatment courts and in consultation with the
Director of the Administrative Office of the Courts and the Drug Treatment
Court Advisory Committee.
The senior resident superior court judge and the chief district court judge shall have hiring and appointment authority over drug treatment court personnel and over policy issues, and they shall consult with the local management committee concerning the local drug treatment court policies and procedures."
SECTION 14.9.(d) G.S. 7A‑797 reads as rewritten:
"§
7A‑797. Eligible population; drug treatment court procedures. procedures;
funding.
(a) The Director of
the Administrative Office of the Courts, in conjunction with the State Drug
Treatment Court Advisory Committee, Committee and local drug
treatment court management committees, shall develop criteria for
eligibility and other procedural and substantive guidelines for drug treatment
court operation.operation in accordance with the National Drug Court
Institute's "Ten Key Components" for drug treatment courts.
(b) Limitations imposed by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services on other public funds spent for substance abuse treatment shall not apply to treatment provided for Drug Treatment Court Programs."
SECTION 14.10.(a) Article 2 of Chapter 7B of the General Statutes is amended by adding a new section to read:
"§ 7B‑202. Permanency Mediation.
(a) The Administrative Office of the Courts shall establish a Permanency Mediation Program to provide statewide and uniform services to resolve issues in cases under this Subchapter in which a juvenile is alleged or has been adjudicated to be abused, neglected, or dependent, or in which a petition or motion to terminate a parent's rights has been filed. Participants in the mediation shall include the parties and their attorneys, including the guardian ad litem and attorney advocate for the child; provided, the court may allow mediation to proceed without the participation of a parent whose identity is unknown, a party who was served and has not made an appearance, or a parent, guardian, or custodian who has not been served despite a diligent attempt to serve the person. Upon a finding of good cause, the court may allow mediation to proceed without the participation of a parent who is unable to participate due to incarceration, illness, or some other cause. Others may participate by agreement of the parties, their attorneys, and the mediator, or by order of the court.
(b) The Administrative Office of the Courts shall establish in phases a statewide Permanency Mediation Program consisting of local district programs to be established in all judicial districts of the State. The Director of the Administrative Office of the Courts is authorized to approve contractual agreements for such services as executed by order of the Chief District Court Judge of a district court district, such contracts to be exempt from competitive bidding procedures under Chapter 143 of the General Statutes. The Administrative Office of the Courts shall promulgate policies and regulations necessary and appropriate for the administration of the program. Any funds appropriated by the General Assembly for the establishment and maintenance of permanency mediation programs under this Article shall be administered by the Administrative Office of the Courts.
(c) Mediation proceedings shall be held in private and shall be confidential. Except as provided otherwise in this section, all verbal or written communications from participants in the mediation to the mediator or between or among the participants in the presence of the mediator are absolutely privileged and inadmissible in court.
(d) Neither the mediator nor any party or other person involved in mediation sessions under this section shall be competent to testify to communications made during or in furtherance of such mediation sessions; provided, there is no confidentiality or privilege as to communications made in furtherance of a crime or fraud. Nothing in this subsection shall be construed as permitting an individual to obtain immunity from prosecution for criminal conduct or as excusing an individual from the reporting requirements of Article 3 of Chapter 7B of the General Statutes or G.S. 108A‑102.
(e) Any agreement reached by the parties as a result of the mediation, whether referred to as a "placement agreement," "case plan," or some similar name, shall be reduced to writing, signed by each party, and submitted to the court as soon as practicable. Unless the court finds good reason not to, the court shall incorporate the agreement in a court order, and the agreement shall become enforceable as a court order. If some or all of the issues referred to mediation are not resolved by mediation, the mediator shall report that fact to the court."
SECTION 14.10.(b) The Administrative Office of the Courts may use funds available in the 2006‑2007 fiscal year to implement the provisions of this section.
SECTION 14.11.(a) G.S. 7A‑314(f) reads as rewritten:
"(f) In a criminal
case when a person who any case in which the Judicial Department is
bearing the costs of representation for a party and that party or a witness for
that party does not speak or understand the English language is an
indigent defendant, a witness for an indigent defendant, or a witness for the
State language, and the court appoints a foreign language
interpreter to assist that defendant or witness in the case, party or
witness, the reasonable fee for the interpreter's services, as set by
the court, are is payable from funds appropriated to the Administrative
Office of the Courts. Judicial Department. The appointment and payment
shall be made in accordance with G.S. 7A‑343(9b)."
SECTION 14.11.(b) G.S. 7A‑343 is amended by adding a new subdivision to read:
"(9b) Prescribe, in consultation with the Office of Indigent Defense Services, policies and procedures for the appointment and payment of foreign language interpreters in those cases specified in G.S. 7A‑314(f). These policies and procedures shall be applied uniformly throughout the General Court of Justice. After consultation with the Joint Legislative Commission on Governmental Operations, the Director may also convert contractual foreign language interpreter positions to permanent State positions when the Director determines that it is more cost‑effective to do so."
SECTION 14.11.(c) G.S. 7A‑450(a) reads as rewritten:
"(a) An indigent person
is a person who is financially unable to secure legal representation and to
provide all other necessary expenses of representation in an action or
proceeding enumerated in this Subchapter. An A sign language
interpreter is a necessary expense as defined in Chapter 8B of the General
Statutes for a deaf person who is entitled to counsel under this subsection. A
foreign language interpreter is a necessary expense for a party entitled to
counsel under this subsection who does not speak or understand the English
language."
SECTION 14.11.(d) G.S. 8C‑1, Evidence Rule 604, reads as rewritten:
"Rule 604. Interpreters.
An interpreter is subject to the
provisions of these rules relating to qualification as an expert and the
administration of an oath or affirmation that he will make a true translation.interpretation.
Interpreters provided under G.S. 7A‑314(f) shall be appointed and
compensated in accordance with G.S. 7A‑343(9b)."
MONITORING OF COMMUNITY MEDIATION CENTERS
SECTION 14.12. G.S. 7A‑38.6(a) reads as rewritten:
"(a) All community mediation centers currently receiving State funds shall report annually to the Mediation Network of North Carolina on the program's funding and activities, including:
(1) Types of dispute settlement services provided;
(2) Clients receiving each type of dispute settlement service;
(3) Number and type of referrals received, cases actually mediated (identified by docket number), cases resolved in mediation, and total clients served in the cases mediated;
(4) Total program funding and funding sources;
(5) Itemization of the use of funds, including operating expenses and personnel;
(6) Itemization of the use of State funds appropriated to the center;
(7) Level of volunteer activity; and
(8) Identification of future service demands and budget requirements.
The Mediation Network of North Carolina shall compile and summarize the information provided pursuant to this subsection and shall provide the information to the Chairs of the House of Representatives and Senate Appropriations Committees and the Chairs of the House of Representatives and Senate Appropriations Subcommittees on Justice and Public Safety by February 1 of each year.
The Mediation Network of North Carolina shall also submit a copy of its report to the Administrative Office of the Courts. The receipt and review of this report by the Administrative Office of the Courts shall satisfy any program monitoring, evaluation, and contracting requirements imposed on the Administrative Office of the Courts by G.S. 143‑6.2 and any rules adopted under that section."
COMMUNITY MEDIATION CENTER FUNDING
SECTION 14.13. G.S. 7A‑38.6(e) reads as rewritten:
"(e) Each community
mediation center receiving State funds for six or more years shall document
that at least fifty percent (50%) twenty‑five percent (25%)
of total funding comes from non‑State sources."
Indigent Defense Services/State Match for Grants
SECTION 14.14. The Office of Indigent Defense Services may use a sum up to fifty thousand dollars ($50,000) from funds available to provide the State matching funds needed to receive grant funds. Prior to using funds for this purpose, the Office shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Commission on Governmental Operations on the grants to be matched using these funds.
Office of Indigent Defense Services Expansion Funds
SECTION 14.15. Section 14.11 of S.L. 2005‑276 reads as rewritten:
"SECTION 14.11. The
Judicial Department, Office of Indigent Defense Services, may use up to the
sum of one million sixty‑nine thousand six hundred forty‑five
dollars ($1,069,645) in appropriated funds during the 2005‑2006 fiscal
year and up to the sum of one million twenty‑three thousand one
hundred thirty‑five dollars ($1,023,135) two million one hundred
eighteen thousand five hundred eighty dollars ($2,118,580) in appropriated
funds during the 2006‑2007 fiscal year for the expansion of existing
offices currently providing legal services to the indigent population under the
oversight of the Office of Indigent Defense Services by creating up to 1020
new attorney positions and five 10 new support staff positions.
These funds may be used for salaries, benefits, equipment, and related
expenses. Prior to using funds for this purpose, the Office of Indigent Defense
Services shall report to the Chairs of the House and the Senate Appropriations
Subcommittees on Justice and Public Safety on the proposed expansion."
PART XV. DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION
SECTION 15.1. Section 16.3 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.3.(a) Project Challenge North Carolina, Inc., shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee by April 1 each year on the operation and the effectiveness of its program in providing alternative dispositions and services to juveniles who have been adjudicated delinquent or undisciplined. The report shall include information on:
(1) The source of referrals for juveniles.
(2) The types of offenses committed by juveniles participating in the program.
(3) The amount of time those juveniles spend in the program.
(4) The number of juveniles who successfully complete the program.
(5) The number of juveniles who commit additional offenses after completing the program.
(6) The program's budget and expenditures, including all funding sources.
SECTION 16.3.(b) The Juvenile Assessment Center shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee on the effectiveness of the Center by April 1 each year. The report shall include information on the number of juveniles served and an evaluation of the effectiveness of juvenile assessment plans and services provided as a result of these plans. In addition, the report shall include information on the Center's budget and expenditures, including all funding sources.
SECTION 16.3.(c)
Communities in Schools shall report to the Chairs of the Senate and House of
Representatives Appropriations Subcommittees on Justice and Public Safety, the
Joint Legislative Commission on Governmental Operations, the Joint
Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee,
and the Joint Legislative Education Oversight Committee by April 1 each year on
the operation and effectiveness of its program. The report shall include
information on:
(1) The number of children served.
(2) The number of volunteers used.
(3) The impact on children who have received services from Communities in Schools.
(4) The program's budget and expenditures, including all funding sources."
STATE FUNDS MAY BE USED AS FEDERAL MATCHING FUNDS
SECTION 15.2. Section 16.5 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.5. Funds
appropriated in this act to the Department of Juvenile Justice and Delinquency
Prevention for the 2005‑2006 2006‑2007 fiscal year
may be used as matching funds for the Juvenile Accountability Incentive Block
Grants. If North Carolina receives Juvenile Accountability Incentive Block
Grants, or a notice of funds to be awarded, the Office of State Budget and
Management and the Governor's Crime Commission shall consult with the
Department of Juvenile Justice and Delinquency Prevention regarding the
criteria for awarding federal funds. The Office of State Budget and Management,
the Governor's Crime Commission, and the Department of Juvenile Justice and
Delinquency Prevention shall report to the Appropriations Committees of the
Senate and House of Representatives and the Joint Legislative Commission on
Governmental Operations prior to allocation of the federal funds. The report
shall identify the amount of funds to be received for the 2005‑2006 2006‑2007
fiscal year, the amount of funds anticipated for the 2006‑2007 2007‑2008
fiscal year, and the allocation of funds by program and purpose."
Waiver of revised licensing Standards for Juvenile Facilities
SECTION 15.3. Notwithstanding any other provision of law, the Department of Juvenile Justice and Delinquency Prevention shall operate the seven wilderness camping programs in conjunction with Eckerd Youth Alternatives, Inc., pursuant to the mental health licensing standards of the Department of Health and Human Services, Division of Social Services, effective on July 1, 2006, until January 1, 2008. Revisions or amendments to the State mental health licensing standards that become effective after July 1, 2006, shall not apply to the seven Eckerd wilderness camping programs from July 1, 2006, to July 1, 2008.
ANNUAL evaluation of COMMUNITY programs
SECTION 15.4. Section 16.4 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.4. The Department of Juvenile Justice and Delinquency Prevention shall conduct an evaluation of the Eckerd and Camp Woodson wilderness camp programs, the teen court programs, the program that grants funds to the local organizations of the Boys and Girls Clubs established pursuant to Section 21.10 of S.L. 1999‑237, the Save Our Students program, the Governor's One‑on‑One Programs, and multipurpose group homes. The teen court report shall include statistical information on the number of juveniles served, the number and type of offenses considered by teen courts, referral sources for teen courts, and the number of juveniles that become court‑involved after participation in teen courts. The report on the Boys and Girls Clubs program shall include information on:
(1) The expenditure of State appropriations on the program;
(2) The operations and the effectiveness of the program; and
(3) The number of juveniles served under the program.
In conducting the evaluation of
each of these programs, the Department shall consider whether participation in
each program results in a reduction of court involvement among juveniles. The
Department shall also identify whether the programs are achieving the goals and
objectives of the Juvenile Justice Act, S.L. 1998‑202. The Department
shall report the results of the evaluation to the Joint Corrections, Crime
Control, and Juvenile Justice Oversight Committee, the Chairs of the House
of Representatives and Senate Appropriations Committees Committees,
and the Chairs of the Subcommittees on Justice and Public Safety of the House
of Representatives and Senate Appropriations Committees by March 1 of each
year."
alternatives to juvenile commitment/juvenile crime prevention councils
SECTION 15.5. Section 16.11 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.11.(a) Of the funds appropriated in this act to the Department of Juvenile Justice and Delinquency Prevention, the sum of two hundred fifty thousand dollars ($250,000) shall be used to expand Juvenile Crime Prevention Councils demonstration projects designed to reduce commitments to youth development centers. Specifically, the funds shall be awarded to Juvenile Crime Prevention Councils to provide residential and/or community‑based intensive services to juveniles who have been adjudicated delinquent with a level 2 or 3 disposition or who are reentering the community after serving time in a youth development center. The Department shall develop a competitive grant award process to allocate the funds to county Juvenile Crime Prevention Councils. The programs must initiate services to the targeted population no later than March 1, 2006. On June 30, 2006, any funds not awarded for demonstration projects pursuant to this section by the Department shall revert to the General Fund. The Department may award up to four grants to Juvenile Crime Prevention Councils, and no individual grant may exceed one hundred thousand dollars ($100,000).
SECTION 16.11.(b) The Department of Juvenile Justice and Delinquency Prevention shall report to the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee no later than March 1, 2006, on the implementation and award process. The report shall provide a detailed description of the services to be provided by each program, the number and types of juveniles to be served, and the amount awarded to each program.
SECTION 16.11.(c) The Department of Juvenile Justice and Delinquency Prevention shall report to the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety no later than March 1, 2006, and annually thereafter, on the results of the alternatives to commitment demonstration programs funded by Section 16.7 of S.L. 2004‑124. The 2007 report and all annual reports thereafter shall also include projects funded by this section for the 2005‑2006 fiscal year. Specifically, the report shall provide a detailed description of each of the demonstration programs, including the numbers of juveniles served, their adjudication status at the time of service, the services/treatments provided, the length of service, the total cost per juvenile, and the six‑ and 12‑month recidivism rates for the juveniles after the termination of program services.
SECTION 16.11.(d) The requirements of this section apply to all future allocations by the Department of Juvenile Justice and Delinquency Prevention of the funds appropriated to the Department by Section 16.11 of S.L. 2005‑276 and Section 16.7 of S.L. 2004‑124."
Reports on Youth Development Centers
SECTION 15.6.(a) Section 16.6 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.6.(a) The Department of Juvenile Justice and Delinquency Prevention shall report December 31, 2005, and quarterly thereafter during the 2005‑2007 biennium to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and to the Joint Corrections, Crime Control, and Juvenile Justice Oversight Committee on the treatment staffing model being piloted at Samarkand and Stonewall Jackson Youth Development Centers. The report shall include a list of total positions at each facility by job class, whether the position is vacant or filled, whether positions were filled from internal employees or new employees, and the training and certification status of each position. The report shall also describe the nature of the treatment program, the criteria for evaluating the program, and how the program is performing in comparison to these criteria. The report shall also describe the training approach to be used to train staff in using treatment methods in youth development centers and provide information on current staff training and staff training planned for the next quarter. The Department shall also develop indicators for evaluating staff performance once the model has been implemented.
SECTION 16.6.(b) The Department of Juvenile Justice and Delinquency Prevention shall report December 31, 2005, and quarterly thereafter during the 2005‑2007 biennium to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Corrections, Crime Control, and Juvenile Justice Oversight Committee on the implementation of the treatment staffing model at Dobbs, Dillon, and Juvenile Evaluation Center Youth Development Centers. The Department shall identify the number of positions reallocated to the new treatment job classes and the source of funding for those positions.
SECTION 16.6.(c) The Department of Juvenile Justice and Delinquency Prevention shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Corrections, Crime Control, and Juvenile Justice Oversight Committee by November 10, 2006, on the final recommended staffing plan for youth development centers for the 2007‑2008 fiscal year. The report shall include:
(1) The latest results of the evaluation of the pilot treatment staffing models at the Samarkand and Stonewall Jackson Youth Development Centers and the progress in implementing the model at other youth development centers.
(2) The total recommended staffing by position classification for each youth development center. Staffing by shift shall be provided for each housing unit as well as justification for the level and type of staff on each shift.
(3) The total cost and cost per bed for each youth development center to implement the staffing model.
(4) The primary basis for the number of staff at each youth development center by classification.
(5) An identification of other states that have implemented a treatment based staffing model, how the staffing patterns compare to the Department of Juvenile Justice and Delinquency Prevention proposal, and any research on the benefits and outcomes of using the treatment based approach in these states."
SECTION 15.6.(b) It is the intent of the General Assembly to consider appropriating funds for new treatment positions at youth development centers only when the report required by subsection (a) of this section is received by the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety.
PART XVI. DEPARTMENT OF CORRECTION
INMATE COSTS/MEDICAL BUDGET FOR PRESCRIPTION DRUGS AND INMATE LAUNDRY SERVICES
SECTION 16.1. Section 17.6 of S.L. 2005‑276 reads as rewritten:
"SECTION 17.6.(a) If the cost of providing food and
health care to inmates housed in the Division of Prisons is anticipated to
exceed the continuation budget amounts provided for that purpose in this act,
the Department of Correction shall report the reasons for the anticipated cost
increase and the source of funds the Department intends to use to cover those
additional needs to the Joint Legislative Commission on Governmental
Operations, the Chairs of the Senate and House of Representatives
Appropriations Committees, and the Chairs of the Senate and House of
Representatives Appropriations Subcommittees on Justice and Public Safety.
SECTION 17.6.(c)
Notwithstanding the provisions of G.S. 143‑23(a2), the Department of
Correction may use funds available during the 2005‑2006 fiscal year
2005‑2007 biennium for the purchase of clothing and laundry
services for inmates if expenditures are projected to exceed the Department's
budget for clothing and laundry services. The Department shall consult with the
Joint Legislative Commission on Governmental Operations prior to exceeding the
continuation budget amount."
CONVERSION OF CONTRACTED MEDICAL POSITIONS
SECTION 16.2. Section 17.7 of S.L. 2005‑276 reads as rewritten:
"SECTION 17.7.(a) The Department of Correction may convert contract medical positions to permanent State medical positions if the Department can document that the total savings generated will exceed the total cost of the new positions for each facility. Where practical, the Department shall convert contract positions to permanent positions by using existing vacancies in medical positions.
SECTION 17.7.(b) The
Department of Correction shall report by April 1, 2006, April of each
year to the Joint Legislative Commission on Governmental Operations and the
Chairs of the Senate and House of Representatives Appropriations Subcommittees
on Justice and Public Safety on all conversions made pursuant to this section,
by type of position and location, and on the savings generated at each
correctional facility."
COMPUTER/DATA PROCESSING SERVICES FUNDS
SECTION 16.3. Section 17.10. of S.L. 2005‑276 reads as rewritten:
SECTION 16.4. Section 17.22 of Session Laws 2005‑276 reads as rewritten:
"SECTION 17.22.(a) Funds
appropriated in this act to
the Department of Correction to support the programs of Harriet's House may be
used for program operating costs, the purchase of equipment, and the rental of
real property to serve women released from prison with children in their
custody. Harriet's House shall report by February 1 of each year to the Joint
Legislative Commission on Governmental Operations Joint Legislative Corrections,
Crime Control, and Juvenile Justice Oversight Committee on the expenditure
of State appropriations and on the effectiveness of the program, including
information on the number of clients served, the number of clients who
successfully complete the Harriet's House program, and the number of clients
who have been rearrested within three years of successfully completing the
program. The report shall provide financial and program data for the complete
fiscal year prior to the year in which the report is submitted. The financial
report shall identify all funding sources and amounts.
SECTION 17.22.(b) Summit House shall report by
February 1 of each year to the Joint Legislative Commission on Governmental
Operations Joint Legislative Corrections, Crime Control, and Juvenile
Justice Oversight Committee on the expenditure of State appropriations and
on the effectiveness of the program, including information on the number of
clients served, the number of clients who have had their probation revoked, the
number of clients who successfully complete the program while housed at Summit
House, Inc., and the number of clients who have been rearrested within
three years of successfully completing the program. The report shall provide
financial and program data for the complete fiscal year prior to the year in
which the report is submitted. The financial report shall identify all funding
sources and amounts.
SECTION 17.22.(c) Women at Risk shall report by
February 1 of each year to the Joint Legislative Commission on Governmental
Operations Joint Legislative Corrections, Crime Control, and Juvenile
Justice Oversight Committee on the expenditure of State funds and on the
effectiveness of the program, including information on the number of clients
served, the number of clients who have had their probation revoked, the number
of clients who have successfully completed the program, and the number of
clients who have been rearrested within three years of successfully completing
the program. The report shall provide financial and program data for the
complete fiscal year prior to the year in which the report is submitted. The
financial report shall identify all funding sources and amounts."
SECTION 16.5. Section 17.28 of S.L. 2005‑276 reads as rewritten:
"SECTION 17.28.(a) The Post‑Release Supervision and Parole Commission shall, with the assistance of the North Carolina Sentencing and Policy Advisory Commission and the Department of Correction, analyze the amount of time each parole‑eligible inmate has served compared to the time served by offenders under Structured Sentencing for comparable crimes. The Commission shall determine if the person has served more time in custody than the person would have served if sentenced to the maximum sentence under the provisions of Article 81B of Chapter 15A of the General Statutes. The "maximum sentence", for the purposes of this section, shall be calculated as set forth in subsection (b) of this section.
SECTION 17.28.(b) For the purposes of this section, the following rules apply for the calculation of the maximum sentence:
(1) The offense upon which the person was convicted shall be classified as the same felony class as the offense would have been classified if committed after the effective date of Article 81B of Chapter 15A of the General Statutes.
(2) The minimum sentence shall be the maximum number of months in the presumptive range of minimum durations in Prior Record Level VI of G.S. 15A‑1340.17(c) for the felony class determined under subdivision (1) of this subsection. The maximum sentence shall be calculated using G.S. 15A‑1340.17(d), (e), or (e1).
(3) If a person is serving sentences for two or more offenses that are concurrent in any respect, then the offense with the greater classification shall be used to determine a single maximum sentence for the concurrent offenses. The fact that the person has been convicted of multiple offenses may be considered by the Commission in making its determinations under subsection (a) of this section.
SECTION 17.28.(c) The Commission shall
report to the Joint Legislative Corrections, Crime Control, and Juvenile
Justice Oversight Committee on the results of its analysis by October 1,
2005. and to the Chairs of the Senate and House of
Representatives Appropriations Committees, and the Chairs of the Senate and
House of Representatives Appropriations Subcommittees on Justice and Public
Safety by April 1, 2007. The report shall include the following:
the class of the offense for which each parole‑eligible inmate was
convicted and whether an inmate had multiple criminal convictions. The
Commission shall reinitiate the parole review process for each offender who has
served more time than that person would have under Structured Sentencing as
provided by subsections (a) and (b) of this section.
The Commission shall also
report by February 1, 2006, regarding on the number of parole‑eligible
inmates reconsidered in compliance with this section and the number who were
actually paroled."
SECTION 16.6. Of funds appropriated from the General Fund to the Department of Correction the sum of four hundred thousand dollars ($400,000) for the 2006‑2007 fiscal year shall be used for the Pretrial Services Program. These funds will be managed by the Criminal Justice Partnership Program and will be allocated on a matching basis according to the following priorities:
(1) Counties that received State funds through the Criminal Justice Partnership Program to operate pretrial services programs in the 2005‑2006 fiscal year.
(2) Counties that do not currently have a pretrial services program, but would like to start one.
(3) Counties that currently operate pretrial services programs but did not receive State funds to operate during the 2005‑2006 fiscal year.
GPS Monitoring of Most Serious Sex Offenders
SECTION 16.7.(a) Article 27A of Chapter 14 of the General Statutes is amended by adding a new Part to read:
"Part 5. Sex Offender Monitoring.
"§ 14‑208.33. Establishment of program; creation of guidelines; duties.
(a) The Department of Correction shall establish a sex offender monitoring program that uses a continuous satellite‑based monitoring system and shall create guidelines to govern the program. The program shall be designed to monitor two categories of offenders as follows:
(1) Any offender who is convicted of a reportable conviction as defined by G.S. 14‑208.6(4) and who is required to register under Part 3 of Article 27A of Chapter 14 of the General Statutes because the defendant is classified as a sexually violent predator, is a recidivist, or was convicted of an aggravated offense as those terms are defined in G.S. 14‑208.6. An offender in this category who is ordered by the court to submit to satellite‑based monitoring is subject to that requirement for the person's natural life, unless the requirement is terminated pursuant to G.S. 14‑208.36.
(2) Any offender who satisfies all of the following criteria: (i) is convicted of a reportable conviction as defined by G.S. 14‑208.6(4), (ii) is required to register under Part 2 of Article 27A of Chapter 14 of the General Statutes, (iii) has committed an offense involving the physical, mental, or sexual abuse of a minor, and (iv) based on the Department's risk assessment program requires the highest possible level of supervision and monitoring. An offender in this category who is ordered by the court to submit to satellite‑based monitoring is subject to that requirement only for the period of time ordered by the court and is not subject to a requirement of lifetime satellite‑based monitoring.
(b) In developing the guidelines for the program, the Department shall require that any offender who is enrolled in the satellite‑based program submit to an active continuous satellite‑based monitoring program, unless an active program will not work as provided by this section. If the Department determines that an active program will not work as provided by this section, then the Department shall require that the defendant submit to a passive continuous satellite‑based program that works within the technological or geographical limitations.
(c) The satellite‑based monitoring program shall use a system that provides all of the following:
(1) Time‑correlated and continuous tracking of the geographic location of the subject using a global positioning system based on satellite and other location tracking technology.
(2) Reporting of subject's violations of prescriptive and proscriptive schedule or location requirements. Frequency of reporting may range from once a day (passive) to near real‑time (active).
(d) The Department may contract with a single vendor for the hardware services needed to monitor subject offenders and correlate their movements to reported crime incidents. The contract may provide for services necessary to implement or facilitate any of the provisions of this Part.
"§ 14‑208.34. Enrollment in satellite‑based monitoring programs mandatory; length of enrollment.
(a) Any person described by G.S. 14‑208.33(a)(1) shall enroll in a satellite‑based monitoring program with the Division of Community Corrections office in the county where the person resides. The person shall remain enrolled in the satellite‑based monitoring program for the registration period imposed under G.S. 14‑208.23 which is the person's life, unless the requirement to enroll in the satellite‑based monitoring program is terminated pursuant to G.S. 14‑208.35.
(b) Any person described by G.S. 14‑208.33(a)(2) who is ordered by the court to enroll in a satellite‑based monitoring program shall do so with the Division of Community Corrections office in the county where the person resides. The person shall remain enrolled in the satellite‑based monitoring program for the period of time ordered by the court.
"§ 14‑208.35. Lifetime registration offenders required to submit to satellite‑based monitoring for life and to continue on unsupervised probation upon completion of sentence.
Notwithstanding any other provision of law, when the court sentences an offender who is in the category described by G.S. 14‑208.33(a)(1) for a reportable conviction as defined by G.S. 14‑208.6(4), and orders the offender to enroll in a satellite‑based monitoring program, the court shall also order that the offender, upon completion of the offender's sentence and any term of parole, post‑release supervision, intermediate punishment, or supervised probation that follows the sentence, continue to be enrolled in the satellite‑based monitoring program for the offender's life and be placed on unsupervised probation unless the requirement that the person enroll in a satellite‑based monitoring program is terminated pursuant to G.S. 14‑208.36.
"§ 14‑208.36. Request for termination of satellite‑based monitoring requirement.
(a) An offender described by G.S. 14‑308.33(a)(1) who is required to submit to satellite‑based monitoring for the offender's life may file a request for termination of monitoring requirement with the Post‑Release Supervision and Parole Commission. The request to terminate the satellite‑based monitoring requirement and to terminate the accompanying requirement of unsupervised probation may not be submitted until at least one year after the offender: (i) has served his or her sentence for the offense for which the satellite‑based monitoring requirement was imposed, and (ii) has also completed any period of probation, parole, or post‑release supervision imposed as part of the sentence.
(b) Upon receipt of the request for termination, the Commission shall review documentation contained in the offender's file and the statewide registry to determine whether the person has complied with the provisions of this Article. In addition, the Commission shall conduct fingerprint‑based state and federal criminal history record checks to determine whether the person has been convicted of any additional reportable convictions.
(c) If it is determined that the person has not received any additional reportable convictions during the period of satellite‑based monitoring and the person has substantially complied with the provisions of this Article, the Commission may terminate the monitoring requirement if the Commission finds that the person is not likely to pose a threat to the safety of others.
(d) If it is determined that the person has received any additional reportable convictions during the period of satellite‑based monitoring or has not substantially complied with the provisions of this Article, the Commission shall not order the termination of the monitoring requirement.
(e) The Commission shall not consider any request to terminate a monitoring requirement except as provided by this section. The Commission has no authority to consider or terminate a monitoring requirement for an offender described in G.S. 14‑208.33(a)(2).
"§ 14‑208.37. Failure to enroll; tampering with device.
(a) Any person required to enroll in a satellite‑based monitoring program who fails to enroll shall be guilty of a Class E felony.
(b) Any person who intentionally tampers with, removes, or vandalizes a device issued pursuant to a satellite‑based monitoring program to a person duly enrolled in the program shall be guilty of a Class C felony.
"§ 14‑208.38. Fees.
(a) There shall be a onetime fee of ninety dollars ($90.00) assessed to each person required to enroll pursuant to this Part. The court may exempt a person from paying the fee only for good cause and upon motion of the person placed on satellite‑based monitoring. The court may require that the fee be paid in advance or in a lump sum or sums, and a probation officer may require payment by those methods if the officer is authorized by subsection (c) of this section to determine the payment schedule. This fee is intended to offset only the costs associated with the time‑correlated tracking of the geographic location of subjects using the location tracking crime correlation system.
(b) The fee shall be payable to the clerk of superior court, and the fees shall be remitted quarterly to the Department.
(c) If a person placed on supervised probation, parole, or post‑release supervision is required as a condition of that probation, parole, or post‑release supervision to pay any moneys to the clerk of superior court, the court may delegate to a probation officer the responsibility to determine the payment schedule."
SECTION 16.7.(b) G.S. 15A‑1343(b2) reads as rewritten:
"(b2) Special Conditions of Probation for Sex Offenders and Persons Convicted of Offenses Involving Physical, Mental, or Sexual Abuse of a Minor. – As special conditions of probation, a defendant who has been convicted of an offense which is a reportable conviction as defined in G.S. 14‑208.6(4), or which involves the physical, mental, or sexual abuse of a minor, must:
(1) Register as required by G.S. 14‑208.7 if the offense is a reportable conviction as defined by G.S. 14‑208.6(4).
(2) Participate in such evaluation and treatment as is necessary to complete a prescribed course of psychiatric, psychological, or other rehabilitative treatment as ordered by the court.
(3) Not communicate with, be in the presence of, or found in or on the premises of the victim of the offense.
(4) Not reside in a household with any minor child if the offense is one in which there is evidence of sexual abuse of a minor.
(5) Not reside in a household with any minor child if the offense is one in which there is evidence of physical or mental abuse of a minor, unless the court expressly finds that it is unlikely that the defendant's harmful or abusive conduct will recur and that it would be in the minor child's best interest to allow the probationer to reside in the same household with a minor child.
(6) Satisfy any other conditions determined by the court to be reasonably related to his rehabilitation.
(7) Submit to satellite‑based monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes, if the defendant is described by G.S. 14‑208.33(a)(1).
(8) Submit to electronic monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes, if the defendant is in the category described by G.S. 14‑208.33(a)(2), and the Department of Correction, based on the Department's risk assessment program, recommends that the defendant submit to the highest possible level of supervision and monitoring.
Defendants subject to the provisions of this subsection shall not be placed on unsupervised probation."
SECTION 16.7.(c) G.S. 15A‑1343.2 is amended by adding a new subsection to read:
"(f1) Mandatory Condition of Satellite‑Based Monitoring For Some Sex Offenders. – Notwithstanding any other provision of this section, the court shall impose satellite‑based monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes as a condition of probation on any offender who is described by G.S. 14‑208.33(a)(1)."
SECTION 16.7.(d) G.S. 15A‑1343.2(f) is amended by adding a new subdivision to read:
"(5) Submit to electronic monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes, if the defendant is described by G.S. 14‑208.33(a)(2)."
SECTION 16.7.(e) G.S. 15A‑1344 is amended by adding a new subsection to read:
"(e2) Mandatory Satellite‑Based Monitoring Required for Extension of Probation in Response to Violation by Certain Sex Offenders. – If a defendant who is in the category described by G.S. 14‑208.33(a)(1) violates probation and if the court extends the probation as a result of the violation, then the court shall order satellite‑based monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes as a condition of the extended probation."
SECTION 16.7.(f) G.S. 15A‑1368.2 is amended by adding a new subsection to read:
"(c1) Notwithstanding subsection (c) of this section, a person required to submit to satellite‑based monitoring pursuant to G.S. 15A‑1368.4(b1)(6) shall continue to participate in satellite‑based monitoring beyond the period of post‑release supervision until the Commission releases the person from that requirement pursuant to G.S. 15A‑1368.4A."
SECTION 16.7.(g) G.S. 15A‑1368.4 (b1) reads as rewritten:
"(b1) Additional Required Conditions for Sex Offenders and Persons Convicted of Offenses Involving Physical, Mental, or Sexual Abuse of a Minor. –
In addition to the required condition set forth in subsection (b) of this section, for a supervisee who has been convicted of an offense which is a reportable conviction as defined in G.S. 14‑208.6(4), or which involves the physical, mental, or sexual abuse of a minor, controlling conditions, violations of which may result in revocation of post‑release supervision, are:
(1) Register as required by G.S. 14‑208.7 if the offense is a reportable conviction as defined by G.S. 14‑208.6(4).
(2) Participate in such evaluation and treatment as is necessary to complete a prescribed course of psychiatric, psychological, or other rehabilitative treatment as ordered by the Commission.
(3) Not communicate with, be in the presence of, or found in or on the premises of the victim of the offense.
(4) Not reside in a household with any minor child if the offense is one in which there is evidence of sexual abuse of a minor.
(5) Not reside in a household with any minor child if the offense is one in which there is evidence of physical or mental abuse of a minor, unless a court of competent jurisdiction expressly finds that it is unlikely that the defendant's harmful or abusive conduct will recur and that it would be in the child's best interest to allow the supervisee to reside in the same household with a minor child.
(6) Failure to submit to satellite‑based monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes, if the offense is a reportable conviction as defined by G.S. 14‑208.6(4) and the supervisee is in the category described by G.S. 14‑208.33(a)(1).
(7) Failure to submit to satellite‑based monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes, if the offense is a reportable conviction as defined by G.S. 14‑208.6(4) and the supervisee is in the category described by G.S. 14‑208.33(a)(2)."
SECTION 16.7.(h) G.S. 15A‑1374 is amended by adding a new subsection to read:
"(b1) Mandatory Satellite‑Based Monitoring Required as Condition of Parole for Certain Offenders. – If a parolee is in a category described by G.S. 14‑208.33(a)(1), the Commission must require as a condition of parole that the parolee submit to satellite‑based monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes. If a parolee is in a category described by G.S. 14‑208.33(a)(2), the Commission may require as a condition of parole that the parolee submit to satellite‑based monitoring pursuant to Part 5 of Article 27A of Chapter 14 of the General Statutes."
SECTION 16.7.(i) G.S. 143B‑266 is amended by adding a new subsection to read:
"(e) The Commission may accept and review requests from persons placed on probation, parole, or post‑release supervision to terminate a mandatory condition of satellite‑based monitoring as provided by G.S. 14‑208.35. The Commission may grant or deny those requests in compliance with G.S.14‑208.35."
SECTION 16.7.(j) The Department of Correction shall have the program enacted by subsection (a) of this section established by January 1, 2007.
SECTION 16.7.(k) This section is effective when it becomes law and applies to offenses committed on or after that date. This section also applies to any person sentenced to intermediate punishment on or after that date and to any person released from prison by parole or post‑release supervision on or after that date. This section also applies to any person who completes his or her sentence on or after the effective date of this section who is not on post‑release supervision or parole. However, the requirement to enroll in a satellite‑based program is not mandatory until January 1, 2007, when the program is established.
PART XVII. DEPARTMENT OF ADMINISTRATION
Examine Feasibility of Combining Funding sources/nc Council for women and Domestic violence commission
SECTION 17.1. The North Carolina Council for Women and the Domestic Violence Commission, within the Department of Administration, shall examine the feasibility of combining the funding sources to distribute domestic violence grants and sexual assault grants. The North Carolina Council for Women and the Domestic Violence Commission shall report their findings to the Joint Legislative Commission on Governmental Operations by February 1, 2007.
PART XVIII. Office of Administrative hearings
Codifier's Authority over the Register
SECTION 18.1. G.S. 150B‑21.17 reads as rewritten:
"§ 150B‑21.17. North Carolina Register.
(a) Content. – The Codifier of Rules must publish the North Carolina Register. The North Carolina Register must be published at least two times a month and must contain the following:
(1) Temporary rules entered in the North Carolina Administrative Code.
(1a) The text of proposed rules and the text of permanent rules approved by the Commission.
(1b) Emergency rules entered into the North Carolina Administrative Code.
(2) Notices of receipt of a petition for municipal incorporation, as required by G.S. 120‑165.
(3) Executive orders of the Governor.
(4) Final decision letters from the United States Attorney General concerning changes in laws that affect voting in a jurisdiction subject to section 5 of the Voting Rights Act of 1965, as required by G.S. 120‑30.9H.
(5) Orders of the Tax Review Board issued under G.S. 105‑241.2.
(6) Other information the Codifier determines to be helpful to the public.
(b) Form. – When an agency publishes notice in the North Carolina Register of the proposed text of a new rule, the Codifier of Rules must publish the complete text of the proposed new rule. In publishing the text of a proposed new rule, the Codifier must indicate the rule is new by underlining the proposed text of the rule.
When an agency publishes notice in the North Carolina Register of the proposed text of an amendment to an existing rule, the Codifier must publish the complete text of the rule that is being amended unless the Codifier determines that publication of the complete text of the rule being amended is not necessary to enable the reader to understand the proposed amendment. In publishing the text of a proposed amendment to a rule, the Codifier must indicate deleted text with overstrikes and added text with underlines.
When an agency publishes notice in the North Carolina Register of the proposed repeal of an existing rule, the Codifier must publish the complete text of the rule the agency proposes to repeal unless the Codifier determines that publication of the complete text is impractical. In publishing the text of a rule the agency proposes to repeal, the Codifier must indicate the rule is to be repealed.
(c) The Codifier may authorize and license the private indexing, marketing, sales, reproduction, and distribution of the Register."
PART XIX. DEPARTMENT OF REVENUE
Extended DOR Call Center Fee Use
SECTION 19.1. Section 22.6(a) of S.L. 2002‑126, as amended by Section 23.1 of S.L. 2003‑284, as amended by Section 23.1 of S.L. 2004‑124, reads as rewritten:
"SECTION 22.6.(a) There
is appropriated from the collection assistance fee account created in G.S. 105‑243.1
to the Department of Revenue the sum of one million six hundred twenty‑two
thousand eight hundred ninety‑six dollars ($1,622,896) for the 2003‑2004
fiscal year and the sum of two million one hundred fifty‑four thousand
five hundred ninety‑three dollars ($2,154,593) for the 2004‑2005
fiscal year to pay for the costs of establishing and equipping a central
taxpayer telecommunications service center for collections and assistance and
for the costs associated with aligning local field offices with the new center.
Of the funds appropriated in this subsection, the sum of three million dollars
($3,000,000) that was designated for the 2003‑2005 biennium to pay for
the costs of establishing and equipping a central taxpayer telecommunications
service center does not revert at the end of the 2004‑2005 fiscal year
but remains available until June 30, 2006, 2007, for operating
costs of the service center."
Revised Maximums for Collection Assistance Fees
SECTION 19.2. G.S. 105‑243.1(e) reads as rewritten:
"(e) Use. – The fee is a receipt of the Department and must be applied to the costs of collecting overdue tax debts. The proceeds of the fee must be credited to a special account within the Department and may be expended only as provided in this subsection. The proceeds of the fee may not be used for any purpose that is not directly and primarily related to collecting overdue tax debts. The Department may apply the proceeds of the fee for the purposes listed in this subsection. The remaining proceeds of the fee may be spent only pursuant to appropriation by the General Assembly. The fee proceeds do not revert but remain in the special account until spent for the costs of collecting overdue tax debts. The Department and the Office of State Budget and Management must account for all expenditures using accounting procedures that clearly distinguish costs allocable to collecting overdue tax debts from costs allocable to other purposes and must demonstrate that none of the fee proceeds are used for any purpose other than collecting overdue tax debts.
The Department may apply the fee proceeds for the following purposes:
(1) To pay contractors for collecting overdue tax debts under subsection (b) of this section.
(2) To pay the fee the United States Department of the Treasury charges for setoff to recover tax owed to North Carolina.
(3) To pay for taxpayer
locater services, not to exceed one hundred thousand dollars ($100,000) one
hundred forty‑one thousand dollars ($141,000) a year.
(4) To pay for postage or
other delivery charges for correspondence directly and primarily relating to
collecting overdue tax debts.debts, not to exceed three hundred fifty‑three
thousand dollars ($353,000) a year.
(5) To pay for operating expenses for Project Collection Tax and the Taxpayer Assistance Call Center.
(6) To pay for expenses of the Examination and Collection Division directly and primarily relating to collecting overdue tax debts."
Consolidate Tax Projects Reports
SECTION 19.3.(a) G.S. 105‑243.1(f) reads as rewritten:
"(f) Reports. – The report
of Department activities required by G.S. 105‑256 contains
information on the Department's efforts to collect tax debts and its use of the
proceeds of the collection assistance fee.Department must report
semiannually to the Joint Legislative Commission on Governmental Operations and
to the Revenue Laws Study Committee on its efforts to collect tax debts. Each
report must include a breakdown of the amount and age of tax debts collected by
collection agencies on contract, the amount and age of tax debts collected by
the Department through warning letters, and the amount and age of tax debts
otherwise collected by Department personnel. The report must itemize
collections by type of tax. Each report must also include a long‑term
collection plan, a timeline for implementing each step of the plan, a summary
of steps taken since the last report and their results, and any other data
requested by the Commission or the Committee.
The Department must report by
April 1, 2006, and annually thereafter, to the Revenue Laws Study Committee and
the Fiscal Research Division of the General Assembly on the use of the fee
proceeds for collecting overdue tax debts."
SECTION 19.3.(b) G.S. 105‑256(a) reads as rewritten:
"(a) Reports. – The Secretary shall prepare and publish the following:
…
(6) On an annual basis, a
report on the quality of services provided to taxpayers, including telephone
andtaxpayers through the Taxpayer Assistance Call Center, walk‑in
assistance assistance, and taxpayer education. The report must be
submitted to the Joint Legislative Commission on Governmental Operations.
…
(8) By January 1 and July 1 of each year, a semiannual report on the Department's activities listed in this subdivision. The report must be submitted to the Joint Legislative Commission on Governmental Operations and to the Revenue Laws Study Committee.
a. Its efforts to increase compliance with the tax laws. The report must describe the Department's existing initiatives in this area as of July 1, 2006, and must estimate, by tax type and amount, the revenue expected in the fiscal year by the initiative. The report must describe any new initiative implemented since July 1, 2006, and estimate, by tax type and amount, the revenue expected in the fiscal year by the initiative.
b. Its efforts to identify and address fraud and other abuses of the voluntary tax compliance system that result in unreported and underreported tax. The report must describe the Department's long‑term plan for achieving greater voluntary compliance and must summarize the steps taken since the last report and their results.
c. Its efforts to collect tax debts. The report must include a breakdown of the amount and age of tax debts collected through warning letters and by other means, must itemize collections by type of tax, must describe the Department's long‑term collection plan, and must summarize the steps taken since the last report and their results.
d. Its use of the proceeds of the collection assistance fee imposed by G.S. 105‑243.1.
SECTION 19.3.(c) The first report required under G.S. 105‑256(a)(8), as enacted by this section, is due by January 1, 2007.
Payment of USUB Penalties to Civil Penalty and Forfeiture Fund
SECTION 19.4. Notwithstanding G.S. 143‑18, the Department of Revenue shall be allowed to expend up to two million four hundred thirty‑four thousand two hundred seventy dollars and seventy‑one cents ($2,434,270.71) of unencumbered maintenance appropriations as of June 30, 2006, for the purpose of paying the Civil Penalty and Forfeiture Fund. The amount to be expended represents Unauthorized Substance Tax penalty collections that were paid to local law enforcement agencies for the period of July 1, 2005, through December 31, 2005. The source of the unencumbered funds shall come entirely from the Department of Revenue. If unencumbered funds are not sufficient at June 30, 2006, the Department shall use anticipated unencumbered funds as of July 1, 2006. The Department shall reduce succeeding distributions to a law enforcement agency under G.S. 105‑113.113 by the amount that was improperly distributed to that agency.
PART XX. DEPARTMENT OF THE STATE TREASURER
Consolidate Public Employee Retirement Programs in Single Agency
SECTION 20.1. G.S. 143B‑426.24 reads as rewritten:
"§ 143B‑426.24. Board of Trustees of the North Carolina Public Employee Deferred Compensation Plan.
(a) The Governor may, by
Executive Order, establish a Board of Trustees of the North Carolina Public
Employee Deferred Compensation Plan, which when established shall be
constituted an agency of the State of North Carolina within the Department of Administration.State
Treasurer. The Board shall create, establish, implement, coordinate and
administer a Deferred Compensation Plan for employees of the State, any county
or municipality, the North Carolina Community College System, and any political
subdivision of the State. Until so established, the Board heretofore
established pursuant to Executive Order XII dated November 12, 1974, shall
continue in effect. Likewise, the Plan heretofore established shall continue
until a new plan is established.
(b) The Board shall consist of seven voting members, as follows:
(1) Three persons shall be appointed by the Governor who shall have experience with taxation, finance and investments, one of whom shall be a State employee;
(2) One member shall be appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives under G.S. 120‑121;
(3) One member shall be appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate under G.S. 120‑121;
(4) The State Treasurer,Secretary
of Administration, ex officio; and
(5) The Secretary of
Administration,State Treasurer, ex officio, chairman.
(c) General Assembly appointments shall serve two year terms. A member shall continue to serve until his successor is duly appointed but a holdover under this provision does not affect the expiration date of the succeeding term. No member of the Board may serve more than three consecutive two year terms.
(d) In case of a vacancy on the Board before the expiration of a member's term, a successor shall be appointed within 30 days of the vacancy for the remainder of the unexpired term by the appropriate official pursuant to subsection (b). Vacancies in legislative appointments shall be filled under G.S. 120‑122.
(e) Other than ex officio members, members appointed by the Governor shall serve at his pleasure.
(f) Any ex officio member may designate in writing, filed with the Board, any employee of his department to act at any meeting of the Board from which the member is absent, to the same extent that the member could act if present in person at such meeting.
(g) It shall be the duty of the Board when established to review all contracts, agreements or arrangements then in force relating to G.S. 147‑9.2 and Executive Order XII to include, but not be limited to, such contracts, agreements or arrangements pertaining to the administrative services and the investment of deferred funds under the Plan for the purpose of recommending continuation of or changes to such contracts, agreements or arrangements.
(h) It shall be the duty of the Board to devise a uniform Deferred Compensation Plan for teachers and employees, which shall include a reasonable number of options to the teacher or employee, for the investment of deferred funds, among which may be life insurance, fixed or variable annuities and retirement income contracts, regulated investment trusts, pooled investment funds managed by the Board or its designee, or other forms of investment approved by the Board, always in such form as will assure the desired tax treatment of such funds. The Board may alter, revise and modify the Plan from time to time to improve the Plan or to conform to and comply with requirements of State and federal laws and regulations relating to the deferral of compensation of teachers and public employees generally.
(h1) Notwithstanding any other law, an employee of any county or municipality, an employee of the North Carolina Community College System, or an employee of any political subdivision of the State may participate in any 457 Plan adopted by the State, with the consent of the Board and with the consent of the proper governing authority of such county, municipality, community college, or political subdivision of the State where such employee is employed.
(i) The Board is authorized to delegate the performance of such of its administrative duties as it deems appropriate including coordination, administration, and marketing of the Plan to teachers and employees. Prior to entering into any contract with respect to such administrative duties, it shall seek bids, hold public hearings and in general take such steps as are calculated by the Board to obtain competent, efficient and worthy services for the performance of such administrative duties.
(j) The Board may acquire investment vehicles from any company duly authorized to conduct such business in this State or may establish, alter, amend and modify, to the extent it deems necessary or desirable, a trust for the purpose of facilitating the administration, investment and maintenance of assets acquired by the investment of deferred funds. All assets of the Plan, including all deferred amounts, property and rights purchased with deferred amounts, and all income attributed thereto shall be held in trust for the exclusive benefit of the Plan participants and their beneficiaries.
(k) Members of the Board, who are not officers or employees of the State, shall receive per diem and necessary travel and subsistence in accordance with the provisions of G.S. 138‑5, funded as provided in subsection (m) hereof.
(l) All clerical and other
services and personnel required by the Board shall be supplied by the Secretary
of Administration,Department of State Treasurer, funded as provided
in subsection (m) hereof.
(m) Investment of deferred
funds shall not be unreasonably delayed, and in no case shall the investment of
deferred funds be delayed more than 30 days. The Board may accumulate such
funds pending investment, and the interest earned on such funds pending
investment shall be available to and may be spent in the discretion of the Board
only for the reasonable and necessary expenses of the Board. The Secretary
of AdministrationState Treasurer is authorized to prescribe
guidelines for the expenditure of such funds by the Board. From time to time as
the Board may direct, funds not required for such expenses may be used to
defray administrative expenses and fees which would otherwise be required to be
borne by teachers and employees who are then participating in the Plan.
(n) A majority of the Board shall constitute a quorum for the transaction of business.
(o) It is intended that the provisions of this Part shall be liberally construed to accomplish the purposes provided for herein."
Part XX – A. General Assembly
Government Performance Audit
SECTION 20A.1(a). The General Assembly shall contract for a performance audit of the executive branch of State government, including The University System. The goals of the audit are to evaluate the efficiency and effectiveness of State government and The University System and to identify specific ways to make improvements. The audits may examine entire departments, agencies, or institutions, or similar programs in several departments. The results of the audits shall be reported on or before February 1, 2008.
The performance audit shall include an examination of the efficiency and effectiveness of major management policies, practices, and functions, including the following areas:
(1) Planning, budgeting, and program evaluation policies and practices, including an analysis of the compliance of the executive branch and The University System with existing planning requirements, such as the Capital Improvement Planning Act, Article 1B of Chapter 143 of the General Statutes.
(2) Personnel systems operations and management.
(3) State purchasing operations and management.
(4) Information technology and telecommunications systems policy, organization, and management.
(5) Review of duplications and related or overlapping services or activities for the purpose of coordinating and streamlining programs to achieve consistent and clear objectives.
SECTION 20A.1.(b) Of the funds appropriated to the General Assembly for the 2006-2007 fiscal year, the sum of up to one million dollars ($1,000,000) shall be used to contract for the audit required by this section. These funds shall not revert at the end of the 2006‑2007 fiscal year but shall remain available for expenditure in the 2007‑2008 fiscal year for the performance audit required by this act.
PART XXI. DEPARTMENT OF TRANSPORTATION
Transportation of Wood Residuals
SECTION 21.1. G.S. 20‑118(c)(15) reads as rewritten:
"(c) Exceptions. – The following exceptions apply to G.S. 20‑118(b) and 20‑118(e).
…
(15) Subsections (b) and (e) of this section do not apply to a vehicle or vehicle combination that meets all of the conditions below, but all other enforcement provisions of this Article remain applicable:
a. Is hauling wood
residuals, including wood chips, sawdust, mulch, or tree bark, bark
from any site; or is transporting bulk soil, bulk rock, sand, sand rock, or
asphalt millings from a site that does not have a certified scale for weighing
the vehicle.
b. Does not operate on an interstate highway, a posted light‑traffic road, or a posted bridge.
c. Does not exceed a maximum gross weight 4,000 pounds in excess of what is allowed in subsection (b) of this section.
d. Does not exceed a single‑axle weight of more than 22,000 pounds and a tandem‑axle weight of more than 42,000 pounds.
…"
Online Dealer Registration Funds
SECTION 21.2.(a) Notwithstanding the provisions of Section 28.22(b) of S.L. 2005‑276, for fiscal year 2006‑2007, the Division of Motor Vehicles is prohibited from spending any funds appropriated to it for Online Dealer Registration enhancements.
SECTION 21.2.(b) This section becomes effective June 30, 2006.
Transportation Improvement Plan Pilot
SECTION 21.3. The Department of Transportation may enter into agreements with units of local government for the purpose of expediting transportation projects currently programmed in the Transportation Improvement Plan.
The agreements affected by this section shall be between the Department of Transportation and units of local government. The agreements may authorize units of local government to construct projects scheduled in the Transportation Improvement Plan more than two years from the date of the agreement. The units of local government shall fund one hundred percent (100%) of the project at current prices. In a future year, when the project is funded from State and federal sources, the units of local government shall be reimbursed an appropriate share of the funds, at the future programmed project funding amount, as identified and scheduled in the Transportation Improvement Plan.
The Department of Transportation shall report to the Joint Legislative Transportation Oversight Committee by December 1, 2006, on any agreements executed with units of local government pursuant to this section.
CASH FLOW HIGHWAY FUNDS AND HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 21.4.(a) The General Assembly authorizes and certifies anticipated revenues of the Highway Fund as follows:
For Fiscal Year 2007‑2008 $1,798.0 million
For Fiscal Year 2008‑2009 $1,836.2 million
For Fiscal Year 2009‑2010 $1,859.2 million
For Fiscal Year 2010‑2011 $1,872.6 million
For Fiscal Year 2007‑2008 $1,128.9 million
For Fiscal Year 2008‑2009 $1,167.8 million
For Fiscal Year 2009‑2010 $1,203.0 million
For Fiscal Year 2010‑2011 $1,235.0 million
DEPARTMENT OF TRANSPORTATION TO PROVIDE REAL‑TIME ACCESS TO ALL Weigh‑in‑Motion Data PRODUCED AND TRANSMITTED FROM WEIGH‑IN‑MOTION SITES THROUGHOUT THE STATE and PROVIDE Periodic Summaries of Data Collected at EXISTING DOT Weigh‑in‑Motion Sites
SECTION 21.5.(a) The Department of Transportation shall provide the State Highway Patrol real‑time access to all real‑time data collection efforts at all existing weigh‑in‑motion sites by October 1, 2006, to include but not limited to:
(1) Install wireless access points at each site to allow the State Highway Patrol to station troopers at or near the weigh‑in‑motion site, capture data on a computer with software and technology capable of receiving the real‑time data as it is captured by the weigh‑in‑motion site, and then take appropriate enforcement action.
(2) Provide periodic summaries of collected data to assist in monitoring overweight vehicle travel volumes, habits, routes, and date and time information.
(3) Acquire any necessary software to allow the State Highway Patrol to interface with the existing systems at all weigh‑in‑motion sites throughout the State.
(4) Provide access to any new facilities constructed on DOT rights‑of‑way that collect, monitor, seize, or capture any data related to violations of weight, length, or height restrictions.
SECTION 21.5.(b) The State Highway Patrol shall report the effectiveness of the access to weigh‑in‑motion sites, the collected data, and use of these sites as a vehicle weight screening technology to increase the effectiveness of Motor Carrier Enforcement activities to the Joint Legislative Transportation Oversight Committee by October 1, 2006.
FUNDS FOR ECONOMIC DEVELOPMENT, SPOT SAFETY, AND TRANSPORTATION IMPROVEMENT PROGRAM PROJECTS
SECTION 21.6. Of the funds appropriated by this act to the Department of Transportation in fiscal year 2006‑2007, twenty‑eight million dollars ($28,000,000) shall be allocated equally among the 14 Highway Divisions for economic development transportation projects recommended by the member of the Board of Transportation representing the Division in which the project is to be constructed in consultation with the Division Engineer and approved by the Board of Transportation. Funds in each Division not needed for economic development projects shall be used on spot safety needs to enhance safety, reduce congestion, improve traffic flow, reduce accidents, and for system preservation. Any remaining funds in each Division shall be used on Transportation Improvement Program projects. The Secretary of Transportation shall not prevent or delay the implementation of any projects approved by the Board of Transportation pursuant to this section.
Change Sunset of Open Container Law
SECTION 21.7. Section 21 of S.L. 2000‑155, as amended by Section 1 of S.L. 2002‑25, reads as rewritten:
"SECTION 21. Section 4
of this act is effective September 1, 2000, and expires September 30, 2006.2010.
Sections 19 and 20 of this act are effective when those sections become
law. The remainder of this act becomes effective September 1, 2000, and applies
to offenses committed on or after that date."
Maintenance of Permanent Weigh Stations
SECTION 21.8. G.S. 20‑183.9 reads as rewritten:
"§ 20‑183.9. Establishment and maintenance of permanent weigh stations.
The Department of Crime Control
and Public Safety is hereby authorized, empowered and directed to equip,
operate, and maintain equip and operate permanent weigh stations
equipped to weigh vehicles using the streets and highways of this State to
determine whether such vehicles are being operated in accordance with
legislative enactments relating to weights of vehicles and their loads. The
permanent weigh stations shall be established at such locations on the streets
and highways in this State as will enable them to be used most advantageously
in determining the weight of vehicles and their loads. The Department of
Transportation shall be responsible for the maintenance and upkeep of all
permanent weigh stations established pursuant to this section."
SECTION 21.9. The State Highway Patrol shall issue a request for a proposal for the maintenance of the Voice Interoperability Plan for Emergency Responders (VIPER). The bid shall be for the current system in place and shall not include installation of the system.
The Criminal Justice Information Network (CJIN) shall prepare a cost allocation plan for the continued building and operation of the VIPER system that shall include proposed shared costs for installation and use by all State government users, including, but not limited to the Department of Health and Human Services, the State Emergency Management Division, the Wildlife Resources Commission, the State Bureau of Investigation, the State Highway Patrol, and Alcohol Law Enforcement.
The CJIN shall report to the Legislative Transportation Oversight Committee, the Chairs of both the Appropriations Subcommittees for Transportation and Justice and Public Safety, and the Fiscal Research Division by October 1, 2006.
access roads for economic development
SECTION 21.10. Of funds appropriated to the Department of Transportation, the Department shall use up to the sum of one million seven hundred thousand dollars ($1,700,000) from the maintenance funds account for construction of access roads in municipalities that have populations greater than 500,000 persons, according to the most recent decennial federal census, to encourage economic development of undeveloped lands. The Department of Transportation may contract with an approved developer to construct an access road and reimburse the developer from the appropriate funds.
Conform Seat Belt Law to Federal Law to prevent a loss of federal highway funds
SECTION 21.11. G.S. 20‑135.2A.(c) reads as rewritten:
"(c) This section shall not apply to any of the following:
(1) A driver or occupant of a noncommercial motor vehicle with a medical or physical condition that prevents appropriate restraint by a safety belt or with a professionally certified mental phobia against the wearing of vehicle restraints;
(2) A motor vehicle operated by a rural letter carrier of the United States Postal Service while performing duties as a rural letter carrier and a motor vehicle operated by a newspaper delivery person while actually engaged in delivery of newspapers along the person's specified route;
(3) A driver or passenger frequently stopping and leaving the vehicle or delivering property from the vehicle if the speed of the vehicle between stops does not exceed 20 miles per hour;
(4) Any vehicle registered
and licensed as a property‑carrying vehicle in accordance with G.S. 20‑88,
while being used for agricultural or commercial purposes; purposes in
intrastate commerce; or
(5) A motor vehicle not required to be equipped with seat safety belts under federal law."
Utilization of small business enterprises in department projects or the Use of Fully Operated Rental Equipment
SECTION 21.12. From funds available to the Department of Transportation, a goal of fifty million dollars ($50,000,000) per year is established for the utilization of small business enterprises through contracts or the use of fully operated rental equipment.
Consolidation of Rural Funding programs by the Department of Transportation's Public Transportation Division
SECTION 21.13. The Department of Transportation, Public Transportation Division, may consolidate its rural funding programs into one large rural capital and operating program for funding of rural and small urban public transportation systems. The Division shall have flexibility to realign funding based on actual needs of transportation systems and for leveraging additional federal funds. The programs affected by the consolidation include: Rural Capital Program, Rural Intercity Program, Rural General Public, Rural Facility Program, Elderly and Disabled Transportation Assistance Program, Rural Technology Program, and Work First/Employment Transportation Program.
The Division shall submit a report on its funding allocation no later than October 31, 2006, to the Chairs of the Appropriations Subcommittee for Transportation and the Fiscal Research Division.
SECTION 21.14. Of funds available to the Department of Transportation, fifteen million dollars ($15,000,000) shall be transferred during the 2006‑2007 fiscal year to the Department of Environment and Natural Resources for a stormwater pilot project to clean up State‑maintained ocean outfalls and associated outlets through new and innovative technologies and filtering mechanisms.
Allowable Loads in Agricultural Transporting
SECTION 21.15. G.S. 20‑51(6) reads as rewritten:
"(6) Any trailer or
semitrailer attached to and drawn by a properly licensed motor vehicle when
used by a farmer, his tenant, agent, or employee in transporting unginned
cotton, peanuts, soybeans, corn, hay, tobacco, silage, cucumbers, potatoes, potatoes,
all vegetables, fruits, greenhouse and nursery plants and flowers, Christmas
trees, fertilizers or chemicals purchased or owned by the farmer or tenant
for personal use in implementing husbandry, irrigation pipes, loaders, or
equipment owned by the farmer or tenant from place to place on the same farm,
from one farm to another, from farm to gin, from farm to dryer, or from farm to
market, and when not operated on a for‑hire basis. The term "transporting"
as used herein shall include the actual hauling of said products and all
unloaded travel in connection therewith."
An Act to Promote Preservation of the Interstate Highway System
SECTION 21.16. In order to promote the preservation of the Interstate Highway System and to more effectively utilize existing Federal Highway Funds for Interstate Maintenance and Preservation, the Department of Transportation shall annually allocate, of the funds available from the Interstate Maintenance Federal Funds authorization, thirty million dollars ($30,000,000) to the 14 Highway Divisions for Interstate resurfacing and preventive maintenance activities specifically for the purposes of pavement preservation, improving ride quality, and extending the life of the Interstate System.
These funds shall be distributed to each Highway Division according to the percentage of lane‑miles of Interstate Highways within that division and deducting from that lane‑mileage, projects awarded the previous fiscal year for pavement rehabilitation, not including Division awarded projects for preventive maintenance.
If during any fiscal year, the Board of Transportation authorizes the transfer of Interstate Maintenance Funds to other federal funding types, the amount of funds distributed to the 14 Highway Divisions by this act shall be concurrently increased by an amount equal to the transfer of Interstate Maintenance Funds.
develop and implement a plan to plant trees and other vegetation on the right‑of‑ways of the state's roads and highways and to provide funding for that plan.
SECTION 21.17.(a) The Department of Environment and Natural Resources, in collaboration with the Departments of Transportation and Correction shall develop and implement a plan to plant the maximum number of trees and other natural and native vegetation feasible along State roads and highways in the right‑of‑way of the Department of Transportation. The Department of Environment and Natural Resources shall report to the Legislative Oversight Commission on Governmental Operations and the Fiscal Research Division by January 1, 2007, on the number of trees and the amount of native vegetation planted pursuant to this section.
SECTION 21.17.(b) Of the funds available to the Department of Transportation, the Department shall transfer twenty‑five thousand dollars ($25,000) to the Department of Environment and Natural Resources during the 2006‑2007 fiscal year to implement this section.
PART XXII. SALARIES AND EMPLOYEE BENEFITS
governor and council of state/salary increases
SECTION 22.1.(a) Effective July 1, 2006, G.S. 147‑11(a) reads as rewritten:
"(a) The salary of the
Governor shall be one hundred twenty‑three thousand eight hundred
nineteen dollars ($123,819) one hundred thirty thousand ten dollars
($130,010) annually, payable monthly."
SECTION 22.1.(b) Section 29.1(b) of S.L. 2005‑276 reads as rewritten:
"SECTION 29.1.(b)
Effective July 1, 2005, July 1, 2006, the annual salaries for the
members of the Council of State, payable monthly, for the 2005‑2006
and 2006‑2007 fiscal years year are:
Council of State Annual Salary
Lieutenant
Governor
$109,279114,743
Attorney
General
109,279114,743
Secretary of
State
109,279114,743
State
Treasurer
109,279114,743
State
Auditor
109,279114,743
Superintendent
of Public
Instruction
109,279114,743
Agriculture
Commissioner
109,279114,743
Insurance
Commissioner
109,279114,743
Labor
Commissioner
109,279114,743"
nonelected department heads/salary increases
SECTION 22.2. Section 29.2 of S.L. 2005‑276 reads as rewritten:
"SECTION 29.2. In
accordance with G.S. 143B‑9, the maximum annual salaries, payable
monthly, for the nonelected heads of the principal State departments for the 2005‑2006
and 2006‑2007 fiscal years year are:
Nonelected Department Heads Annual Salary
Secretary of
Administration
$106,765112,103
Secretary of
Correction
106,765112,103
Secretary of
Crime Control and Public
Safety
106,765112,103
Secretary of
Cultural
Resources
106,765112,103
Secretary of
Commerce
106,765112,103
Secretary of
Environment and Natural
Resources
106,765112,103
Secretary of
Health and Human
Services
106,765112,103
Secretary of
Juvenile Justice and
Delinquency
106,765112,103
Secretary of
Revenue
106,765112,103
Secretary of
Transportation
106,765112,103"
certain executive branch officials/salary increases
SECTION 22.3. Section 29.3 of Section of S.L. 2005‑276 reads as rewritten:
"SECTION 29.3. The
annual salaries, payable monthly, for the 2005‑2006 and 2006‑2007
fiscal years year for the following executive branch officials
are:
Executive Branch Officials Annual Salary
Chairman,
Alcoholic Beverage Control
Commission $97,175 102,034
State
Controller
135,997 142,797
Commissioner
of Motor
Vehicles
97,175 102,034
Commissioner
of
Banks
109,279 114,743
Chairman, Employment Security Commission 133,161
State
Personnel
Director
106,765 112,103
Chairman,
Parole
Commission
88,733 93,170
Members of
the Parole
Commission
40,960 43,008
Chairman,
Utilities
Commission
121,701 127,786
Members of
the Utilities
Commission
109,279 114,743
Executive Director, Agency for
Public
Telecommunications
81,921 86,017
Director, Museum of
Art
99,573 104,552
Executive Director, North Carolina Agricultural
Finance
Authority
94,587 99,316
State Chief
Information
Officer
135,915 142,711"
judicial branch officials/salary increases
SECTION 22.4. Section 29.4 of S.L. 2005‑276 reads as rewritten:
"SECTION 29.4.(a) The
annual salaries, payable monthly, for specified Judicial Branch officials for
the 2005‑2006 and 2006‑2007 fiscal years year are:
Judicial Branch Officials Annual Salary
Chief
Justice, Supreme
Court
$123,819130,010
Associate
Justice, Supreme
Court
120,583126,612
Chief Judge,
Court of
Appeals
117,568123,446
Judge, Court
of
Appeals
115,559121,337
Judge, Senior
Regular Resident Superior
Court
112,419118,040
Judge,
Superior
Court
109,279114,743
Chief Judge,
District
Court
99,231104,193
Judge,
District
Court
96,091100,896
Administrative
Officer of the
Courts
112,419118,040
Assistant
Administrative Officer of the
Courts
102,684107,818"
SECTION 29.4.(b) The
district attorney or public defender of a judicial district, with the approval
of the Administrative Officer of the Courts or the Commission on Indigent
Defense Services, respectively, shall set the salaries of assistant district
attorneys or assistant public defenders, respectively, in that district such
that the average salaries of assistant district attorneys or assistant public
defenders in that district do not exceed sixty‑two thousand nine
hundred thirty dollars ($62,930), sixty‑six thousand seventy‑seven
dollars ($66,077), and the minimum salary of any assistant district
attorney or assistant public defender is at least thirty‑two thousand
eight hundred eighty‑five dollars ($32,885), thirty‑four
thousand five hundred twenty‑nine dollars ($34,529) effective July
1, 2005.July 1, 2006.
SECTION 29.4.(c) Effective July 1, 2005, the annual salaries of permanent, full‑time employees of the Judicial Department whose salaries are not itemized in this act shall be increased by the greater of eight hundred fifty dollars ($850.00) or two percent (2%). Effective July 1, 2006, the annual salaries of permanent full‑time employees of the Judicial Department whose salaries are not itemized in this act shall be increased by five percent (5%).
SECTION 29.4.(d) Effective July 1, 2005, the annual salaries of permanent, part‑time employees of the Judicial Department whose salaries are not itemized in this act shall be increased by pro rata amounts of eight hundred fifty dollars ($850.00) or two percent (2%), whichever is greater. Effective July 1, 2006 the annual salaries of permanent, part‑time employees of the Judicial Department whose salaries are not itemized in this act shall be increased by five percent (5%)."
clerk of superior court/salary increases
SECTION 22.5. Effective July 1, 2006, G.S. 7A‑101(a) reads as rewritten:
"(a) The clerk of superior court is a full‑time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county as determined in subsection (a1) of this section, according to the following schedule:
Population Annual Salary
Less
than
100,000
$73,092 $76,747
100,000
to
149,999
82,021 86,122
150,000
to
249,999
90,952 95,500
250,000
and
above
99,884. 104,878.
The salary schedule in this subsection is intended to represent the following approximate percentage of the salary of a chief district court judge:
Population Annual Salary
Less than 100,000 73%
100,000 to 149,999 82%
150,000 to 249,999 91%
250,000 and above 100%.
When a county changes from one population group to another, the salary of the clerk shall be changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate for the new population group, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office."
assistant and deputy clerks of court/salary increases
SECTION 22.6. Effective July 1, 2006, G.S. 7A‑102(c1) reads as rewritten:
"(c1) A full‑time assistant clerk or a full‑time deputy clerk, and up to one full‑time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks and Head Bookkeeper Annual Salary
Minimum
$28,365 $29,783
Maximum
48,579 51,008
Deputy Clerks Annual Salary
Minimum
$24,415 $25,636
Maximum
37,784. 39,673."
SECTION 22.7.(a) Effective July 1, 2006, G.S. 7A‑171.1(a) reads as rewritten:
"(a) The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate.
(1) A full‑time magistrate shall be paid the annual salary indicated in the table set out in this subdivision. A full‑time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office. The Administrative Officer of the Courts shall designate whether a magistrate is full‑time. Initial appointment shall be at the entry rate. A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.
Table of Salaries of Full‑Time Magistrates
Step Level Annual Salary
Entry
Rate
$28,739 $30,176
Step
1
31,375 32,944
Step
2
34,243 35,955
Step
3
37,373 39,242
Step
4
40,802 42,842
Step
5
44,665 46,898
Step
6
48,997. 51,447.
(2) A part‑time magistrate is a magistrate who is assigned to work an average of less than 40 hours of work a week during the term, except that no magistrate shall be assigned an average of less than 10 hours of work a week during the term. A part‑time magistrate is included, in accordance with G.S. 7A‑170, under the provisions of G.S. 135‑1(10) and G.S. 135‑40.2(a). The Administrative Officer of the Courts designates whether a magistrate is a part‑time magistrate. A part‑time magistrate shall receive an annual salary based on the following formula: The average number of hours a week that a part‑time magistrate is assigned work during the term shall be multiplied by the annual salary payable to a full‑time magistrate who has the same number of years of service prior to the beginning of that term as does the part‑time magistrate and the product of that multiplication shall be divided by the number 40. The quotient shall be the annual salary payable to that part‑time magistrate.
(3) Notwithstanding any other provision of this subsection, a magistrate who is licensed to practice law in North Carolina or any other state shall receive the annual salary provided in the Table in subdivision (1) of this subsection for Step 4."
SECTION 22.7.(b) Effective July 1, 2006, G.S. 7A‑171.1(a1) reads as rewritten:
"(a1) Notwithstanding subsection (a) of this section, the following salary provisions apply to individuals who were serving as magistrates on June 30, 1994:
(1) The salaries of magistrates who on June 30, 1994, were paid at a salary level of less than five years of service under the table in effect that date shall be as follows:
Less
than 1 year of
service
$23,175$24,334
1 or
more but less
than 3 years of
service
24,239 25,451
3 or
more but less
than 5 years of
service
26,380. 27,699.
Upon completion of five years of service, those magistrates shall receive the salary set as the Entry Rate in the table in subsection (a).
(2) The salaries of magistrates who on June 30, 1994, were paid at a salary level of five or more years of service shall be based on the rates set out in subsection (a) as follows:
Salary Level Salary Level
on June 30, 1994 on July 1, 1994
5 or more but less than 7 years of service Entry Rate
7 or more but less than 9 years of service Step 1
9 or more but less than 11 years of service Step 2
11 or more years of service Step 3
Thereafter, their salaries shall be set in accordance with the provisions in subsection (a).
(3) The salaries of magistrates who are licensed to practice law in North Carolina shall be adjusted to the annual salary provided in the table in subsection (a) as Step 4, and, thereafter, their salaries shall be set in accordance with the provisions in subsection (a).
(4) The salaries of "part‑time magistrates" shall be set under the formula set out in subdivision (2) of subsection (a) but according to the rates set out in this subsection."
general assembly principal clerks/salary increases
SECTION 22.8. Effective July 1, 2006, G.S. 120‑37(c) reads as rewritten:
"(c) The principal
clerks shall be full‑time officers. Each principal clerk shall be
entitled to other benefits available to permanent legislative employees and
shall be paid an annual salary of ninety‑two thousand three hundred
twenty‑four dollars ($92,324) ninety‑six thousand nine
hundred forty dollars ($96,940) payable monthly. Each principal clerk shall
also receive such additional compensation as approved by the Speaker of the
House of Representatives or the President Pro Tempore of the Senate,
respectively, for additional employment duties beyond those provided by the
rules of their House. The Legislative Services Commission shall review the
salary of the principal clerks prior to submission of the proposed operating
budget of the General Assembly to the Governor and Advisory Budget Commission
and shall make appropriate recommendations for changes in those salaries. Any
changes enacted by the General Assembly shall be by amendment to this
paragraph."
sergeants‑at‑arms and reading clerks
SECTION 22.9. Effective July 1, 2006, G.S. 120‑37(b) reads as rewritten:
"(b) The sergeant‑at‑arms
and the reading clerk in each house shall be paid a salary of three hundred
twenty‑seven dollars ($327.00) three hundred forty‑three
dollars ($343.00) per week plus subsistence at the same daily rate provided
for members of the General Assembly, plus mileage at the rate provided for
members of the General Assembly for one round trip only from their homes to
Raleigh and return. The sergeants‑at‑arms shall serve during
sessions of the General Assembly and at such time prior to the convening of,
and subsequent to adjournment or recess of, sessions as may be authorized by
the Legislative Services Commission. The reading clerks shall serve during
sessions only."
SECTION 22.10. Effective July 1, 2006, the Legislative Services Officer shall increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 2005‑2006 by five percent (5%). Nothing in this act limits any of the provisions of G.S. 120‑32.
Community college personnel/salary increases
SECTION 22.11. Section 29.11 of S.L. 2005‑276 reads as rewritten:
"SECTION 29.11. The Director of the Budget shall transfer from the Reserve for Compensation Increases, created in this act for fiscal years 2005‑2006 and 2006‑2007, funds to the North Carolina Community Colleges System Office necessary to provide an annual salary increase of the greater of eight hundred fifty dollars ($850.00) or two percent (2%), including funds for the employer's retirement and social security contributions, commencing July 1, 2005, for all community college employees supported by State funds. The Director of the Budget shall transfer from the Reserve for Compensation Increases, created in this act for fiscal year 2006‑2007, funds to the North Carolina Community Colleges System Office necessary to provide:
(1) An annual salary increase for faculty and professional staff of six percent (6%), plus a one‑time two percent (2%) bonus, including funds for the employer's retirement and social security contributions, commencing July 1, 2006, for all community college employees supported by State funds. The one‑time two percent (2%) bonus authorized by this section shall be made in accordance with rules adopted by the State Board of Community Colleges.
(2) An annual increase of five percent (5%), including funds for employer's retirement and social security contributions, commencing July 1, 2006, for all other community college employees supported by State funds."
university of north carolina system/epa compensation
SECTION 22.12. Section 29.12 of S.L. 2005‑276 reads as rewritten:
"SECTION 29.12.(a) The
For the 2005‑2006 fiscal year, the Director of the Budget shall
transfer to the Board of Governors of The University of North Carolina
sufficient funds from the Reserve for Compensation Increases, created in this
act for fiscal years 2005‑2006 and 2006‑2007, to provide an annual
salary increase of the greater of eight hundred fifty dollars ($850.00) or two
percent (2%), including funds for the employer's retirement and social security
contributions, commencing July 1, 2005, for all employees of The University of
North Carolina, as well as employees other than teachers of the North Carolina
School of Science and Mathematics, supported by State funds and whose salaries
are exempt from the State Personnel Act (EPA). The flat dollar increase of
eight hundred fifty dollars ($850.00) shall be made to all employees whose
annual salary is less than or equal to forty‑two thousand five hundred
dollars ($42,500). The percentage annual salary increase of two percent (2%)
authorized by this section shall be made on an aggregated average basis, and
these funds shall be allocated to individuals whose annual salary is greater
than forty‑two thousand five hundred dollars ($42,500), according to the
rules adopted by the Board of Governors of The University of North Carolina or
the Board of Trustees of the North Carolina School of Science and Mathematics,
as appropriate, and may not be used for any purpose other than for salary
increases and necessary employer contributions provided by this section.
SECTION 29.12(a1) For the 2006‑2007 fiscal year, the Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal year 2006‑2007, to provide an annual salary increase of six percent (6%), plus a one‑time two percent bonus (2%), including funds for the employer's retirement and social security contributions, commencing July 1, 2006, for all employees of The University of North Carolina, as well as employees other than teachers of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA). The percentage annual salary increase of six percent (6%), plus the one‑time two percent (2%) bonus, authorized by this section shall be made on an aggregated average basis, according to the rules adopted by the Board of Governors of The University of North Carolina or the Board of Trustees of the North Carolina School of Science and Mathematics, as appropriate, and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section.
SECTION 29.12.(b) The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal years 2005‑2006 and 2006‑2007, to provide an average annual salary increase of two and twenty‑four hundredths percent (2.24%), including funds for the employer's retirement and social security contributions, commencing July 1, 2005, for all teaching employees of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA). These funds shall be allocated to individuals according to the rules adopted by the Board of Trustees of the North Carolina School of Science and Mathematics and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section.
SECTION 29.12.(b1) The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal year 2006‑2007, to provide an average annual salary increase of eight percent (8%), but at least an annual increase of two thousand two hundred fifty dollars ($2,250) including funds for the employer's retirement and social security contributions, commencing July 1, 2006, for all teaching employees of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA). These funds shall be allocated to individuals according to the rules adopted by the Board of Trustees of the North Carolina School of Science and Mathematics and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section."
most state employees/salary increases
SECTION 22.13. Section 29.13 of S.L. 2005‑276 reads as rewritten:
"SECTION 29.13.(a) The salaries in effect June 30, 2005, of all permanent full‑time State employees whose salaries are set in accordance with the State Personnel Act and who are paid from the General Fund or the Highway Fund shall be increased, effective July 1, 2005, by the greater of eight hundred fifty dollars ($850.00) or two percent (2%), unless otherwise provided by this act. Effective July 1, 2006, the salaries in effect June 30, 2006, of all permanent full‑time State employees whose salaries are set in accordance with the State Personnel Act, and who are paid from the General Fund or Highway Funds shall be increased by five percent (5%).
SECTION 29.13.(b) Except as otherwise provided in this act, the fiscal year 2005‑2006 salaries for permanent full‑time State officials and persons in exempt positions that are recommended by the Governor or the Governor and the Advisory Budget Commission and set by the General Assembly shall be increased by the greater of eight hundred fifty dollars ($850.00) or two percent (2%), effective July 1, 2005, unless otherwise provided by this act. Effective July 1, 2006, the compensation of permanent full‑time State officials and persons in exempt positions that are recommended by the Governor or the Governor and the Advisory Budget Commission and set by the General Assembly shall be increased by five percent (5%).
SECTION 29.13.(c) The salaries in effect for fiscal year 2005‑2006 for all permanent part‑time State employees shall be increased, effective July 1, 2005, by pro rata amounts of eight hundred fifty dollars ($850.00) or two percent (2%), whichever is greater. Effective July 1, 2006, the salaries of all permanent part‑time State employees shall be increased by five percent (5%).
SECTION 29.13.(d) The
Director of the Budget may allocate out of special operating funds or from
other sources of the employing agency, except tax revenues, sufficient funds to
allow a salary increase, effective July 1, 2005, salary increases, in
accordance with subsection (a), (b), or (c) of this section, including funds
for the employer's retirement and social security contributions, for the
permanent full‑time and part‑time employees of the agency, provided
the employing agency elects to make available the necessary funds.
SECTION 29.13.(e) Within
For the 2005‑2006 fiscal year, within regular Executive Budget
Act procedures as limited by this act, all State agencies and departments may
increase on an equitable basis the rate of pay of temporary and permanent
hourly State employees, subject to availability of funds in the particular
agency or department, by pro rata amounts of the greater of the eight hundred
fifty dollar ($850.00) or two percent (2%) increase provided for permanent full‑time
employees covered by the provisions of subsection (a) of this section,
commencing July 1, 2005. For the 2006‑2007 fiscal year, within regular
Executive Budget Act procedures as limited by this act, all State agencies and
departments may increase on an equitable basis the rate of pay of temporary and
permanent hourly State employees, subject to availability of funds in the
particular agency or department, by the five percent (5%) increase provided for
permanent full‑time employees covered by the provisions of subsection (a)
of this section, commencing July 1, 2006."
all state‑supported personnel/salary increases
SECTION 22.14. Section 29.14 of S.L. 2005‑276 reads as rewritten:
"SECTION 29.14.(a) Salaries and related benefits for positions that are funded partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund shall be increased from the General Fund or Highway Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund.
SECTION 29.14.(b) The granting of the salary increases under this act does not affect the status of eligibility for salary increments for which employees may be eligible unless otherwise required by this act.
SECTION 29.14.(c) The fiscal year 2005‑2006 salary increases provided in this act are to be effective July 1, 2005, and do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, or whose last workday is prior to July 1, 2005. The fiscal year 2006‑2007 salary increases provided in this act are to be effective July 1, 2006, and do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, or whose last workday is prior to July 1, 2006.
Payroll checks issued to employees
after July 1, 2005, which represent payment of services provided prior
to July 1, 2005,these increases shall not be eligible for salary
increases provided for in this act. This subsection shall apply to all
employees, subject to or exempt from the State Personnel Act, paid from State
funds, including public schools, community colleges, and The University of
North Carolina.
SECTION 29.14.(d) The Director of the Budget shall transfer from the Reserve for Compensation Increases in this act for fiscal year 2005‑2006 and fiscal year 2006‑2007 all funds necessary for the salary increases provided by this act, including funds for the employer's retirement and social security contributions.
SECTION 29.14.(e) Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.
SECTION 29.14.(f) Permanent
For the 2005‑2006 fiscal year, permanent full‑time
employees who work a nine‑, ten‑, or eleven‑month work year
schedule shall receive the eight hundred fifty dollars ($850.00) or two percent
(2%) annual increase provided by this act, whichever is greater. For the
2006‑2007 fiscal year, permanent full‑time employees who work a
nine‑, ten‑, or eleven‑month work year schedule shall receive
the five percent (5%) annual increase provided by this act."
SECTION 22.15. Section 29.15(b) of S.L. 2005‑276 reads as rewritten:
"SECTION 29.15.(b) Funds appropriated or otherwise transferred to the Salary Adjustment Fund by this act or any other provision of law shall be used to fund agency requests for the following purposes:
(1) Salary range revisions
revisions, including special minimum rate adjustments, to provide
competitive salary rates for affected job classifications in response to
changes in labor market salary rates as documented through data collection and
analysis according to accepted human resource professional practices and
standards.
(2) Reallocation of positions to higher‑level job classifications to compensate employees for more difficult duties at competitive salary rates as documented through data collection and analysis according to accepted human resource professional practices and standards.
The terms 'salary range
revision' and 'reallocation' as used in this section shall conform to the
definitions of those terms as previously contained in the State Personnel
Manual and adopted by the State Personnel Commission effective immediately prior
to November 1, 2005. Priority funding Funding shall be given only
to those salary range revisions previously approved by the State Personnel
Commission and reallocations previously approved by the Office of State
Personnel or designee. designee prior to January 1, 2006, and shall
not be used for other purposes including, but not limited to, in‑range
adjustments, career banding adjustments (whether by grade to band transfer
adjustments, career progression adjustments, or other similar methods),
geographic differentials, or other adjustments as these terms may be defined by
State Personnel Policy."
division of water quality salary increases
SECTION 22.16. The Department of Environment and Natural Resources is authorized to, and shall, provide to the employees of the Division of Water Quality an increase in annual salary of ten percent (10%). This increase shall be calculated and awarded after any across‑the‑board salary increases authorized by this act.
SALARY‑RELATED CONTRIBUTIONS/EMPLOYER
SECTION 22.17. Section 29.24(c) of S.L. 2005‑276 reads as rewritten:
"SECTION 29.24.(c) Effective July 1, 2006,
the State's employer contribution rates budgeted for retirement and related
benefits as percentage of covered salaries for the 2006‑2007 fiscal year
are: (i) six and eighty‑two hundredths percent (6.82%) seven
and fourteen hundredths percent (7.14%) – Teachers and State Employees;
(ii) eleven and eighty‑two hundredths percent (11.82%) twelve
and fourteen hundredths percent (12.14%) – State Law Enforcement Officers;
(iii) eleven and sixteen hundredths percent (11.16%) – University Employees'
Optional Retirement System; (iv) eleven and sixteen hundredths percent (11.16%)
– Community College Optional Retirement Program; (v) sixteen and thirty‑nine
hundredths percent (16.39%) – Consolidated Judicial Retirement System; and (vi)
three and eight‑tenths percent (3.8%) – Legislative Retirement System.
Each of the foregoing contribution rates includes three and eight‑tenths
percent (3.8%) for hospital and medical benefits. The rate for Teachers and
State Employees, State Law Enforcement Officers, Community College Optional
Retirement Program, and for the University Employees' Optional Retirement
Program includes fifty‑two hundredths percent (0.52%) for the Disability
Income Plan. The rates for Teachers and State Employees and State Law
Enforcement Officers include sixteen hundredths percent (0.16%) for the Death
Benefits Plan. The rate for State Law Enforcement Officers includes five
percent (5%) for Supplemental Retirement Income."
PROVIDE COST‑OF‑LIVING INCREASES FOR RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM
SECTION 22.18.(a). G.S. 135‑5 is amended by adding a new subsection to read:
"(ooo) From and after July 1, 2006, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2005, shall be increased by three percent (3%) of the allowance payable on June 1, 2006, in accordance with G.S. 135‑5(o). Furthermore, from and after July 1, 2006, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2005, but before June 30, 2006, shall be increased by a prorated amount of three percent (3%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2005, and June 30, 2006."
SECTION 22.18.(b) G.S. 120‑4.22A is amended by adding a new subsection to read:
"(u) In accordance with subsection (a) of this section, from and after July 1, 2006, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 2006, shall be increased by three percent (3%) of the allowance payable on June 1, 2006. Furthermore, from and after July 1, 2006, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 2006, but before June 30, 2006, shall be increased by a prorated amount of three percent (3%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 2006, and June 30, 2006."
SECTION 22.18.(c) G.S. 135‑65 is amended by adding a new subsection to read:
"(aa) From and after July 1, 2006, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2005, shall be increased by three percent (3%) of the allowance payable on June 1, 2006. Furthermore, from and after July 1, 2006, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2005, but before June 30, 2006, shall be increased by a prorated amount of three percent (3%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2005, and June 30, 2006."
INCREASE THE MONTHLY PENSION FOR MEMBERS OF THE FIREMEN'S AND RESCUE SQUAD WORKERS' PENSION FUND
SECTION 22.19. G.S. 58‑86‑55 reads as rewritten:
"§ 58‑86‑55. Monthly pensions upon retirement.
Any member who has served 20 years
as an "eligible fireman" or "eligible rescue squad worker"
in the State of North Carolina, as provided in G.S. 58‑86‑25
and G.S. 58‑86‑30, and who has attained the age of 55 years is
entitled to be paid a monthly pension from this fund. The monthly pension shall
be in the amount of one hundred sixty‑three dollars ($163.00) one
hundred sixty‑five dollars ($165.00) per month. Any retired fireman
receiving a pension shall, effective July 1, 2005, July 1, 2006,
receive a pension of one hundred sixty‑three dollars ($163.00) one
hundred sixty‑five dollars ($165.00) per month.
Members shall pay ten dollars ($10.00) per month as required by G.S. 58‑86‑35 and G.S. 58‑86‑40 for a period of no longer than 20 years. No "eligible rescue squad member" shall receive a pension prior to July 1, 1983. No member shall be entitled to a pension hereunder until the member's official duties as a fireman or rescue squad worker for which the member is paid compensation shall have been terminated and the member shall have retired as such according to standards or rules fixed by the board of trustees.
A member who is totally and
permanently disabled while in the discharge of the member's official duties as
a result of bodily injuries sustained or as a result of extreme exercise or
extreme activity experienced in the course and scope of those official duties
and who leaves the fire or rescue squad service because of this disability
shall be entitled to be paid from the fund a monthly benefit in an amount of one
hundred sixty‑three dollars ($163.00) one hundred sixty‑five
dollars ($165.00) per month beginning the first month after the member's
fifty‑fifth birthday. All applications for disability are subject to the
approval of the board who may appoint physicians to examine and evaluate the
disabled member prior to approval of the application, and annually thereafter.
Any disabled member shall not be required to make the monthly payment of ten
dollars ($10.00) as required by G.S. 58‑86‑35 and G.S. 58‑86‑40.
A member who is totally and permanently disabled for any cause, other than line of duty, who leaves the fire or rescue squad service because of this disability and who has at least 10 years of service with the pension fund, may be permitted to continue making a monthly contribution of ten dollars ($10.00) to the fund until the member has made contributions for a total of 240 months. The member shall upon attaining the age of 55 years be entitled to receive a pension as provided by this section. All applications for disability are subject to the approval of the board who may appoint physicians to examine and evaluate the disabled member prior to approval of the application and annually thereafter.
A member who, because his residence is annexed by a city under Part 2 or Part 3 of Article 4 of Chapter 160A of the General Statutes, or whose department is closed because of an annexation by a city under Part 2 or Part 3 of Article 4 of Chapter 160A of the General Statutes, or whose volunteer department is taken over by a city or county, and because of such annexation or takeover is unable to perform as a fireman or rescue squad worker of any status, and if the member has at least 10 years of service with the pension fund, may be permitted to continue making a monthly contribution of ten dollars ($10.00) to the fund until the member has made contributions for a total of 240 months. The member upon attaining the age of 55 years and completion of such contributions shall be entitled to receive a pension as provided by this section. Any application to make monthly contributions under this section shall be subject to a finding of eligibility by the Board of Trustees upon application of the member.
The pensions provided shall be in addition to all other pensions or benefits under any other statutes of the State of North Carolina or the United States, notwithstanding any exclusionary provisions of other pensions or retirement systems provided by law."
INCREASE THE MAXIMUM MONTHLY PENSION BENEFITS FOR RETIRED MEMBERS OF THE NORTH CAROLINA NATIONAL GUARD
SECTION 22.20. G.S. 127A‑40(a) reads as rewritten:
"(a) Every member and
former member of the North Carolina national guard who meets the requirements
hereinafter set forth shall receive, commencing at age 60, a pension of seventy‑five
dollars ($75.00) eighty dollars ($80.00) per month for 20 years'
creditable military service with an additional seven dollars and fifty cents
($7.50) eight dollars ($8.00) per month for each additional year of
such service; provided, however, that the total pension shall not exceed one
hundred fifty dollars ($150.00) one hundred sixty dollars ($160.00)
per month. The requirements for such pension are that each member shall:
(1) Have served and qualified for at least 20 years' creditable military service, including national guard, reserve and active duty, under the same requirement specified for entitlement to retired pay for nonregular service under Chapter 67, Title 10, United States Code.
(2) Have at least 15 years of the aforementioned service as a member of the North Carolina national guard.
(3) Have received an honorable discharge from the North Carolina national guard."
PART XXIII. CAPITAL APPROPRIATIONS.
CAPITAL APPROPRIATIONS/GENERAL FUND
SECTION 23.1. There is appropriated from the General Fund for the 2006‑2007 fiscal year the following amounts for capital improvements:
Capital Improvements – General Fund 2006‑2007
Department of Agriculture and Consumer Services
Rollins Laboratory – Bio Security Level 2 Lab Conversion $250,000
Department of Crime Control and Public Safety
Emergency Management Operations Center 8,500,000
Department of Environment and Natural Resources
Hickory Nut Gorge Expansion 15,000,000
Water Resources Development Projects 20,000,000
Office of the Governor
Information Technology Services – State Data Center 24,841,300
University of North Carolina System
University of North Carolina at Wilmington –
School of Nursing 27,000,000
North Carolina State University – Engineering Complex III 61,000,000
University of North Carolina at Charlotte –
Center City Classroom Building 45,827,400
Winston Salem State University – Center for Design
Innovation 3,500,000
University of North Carolina at Chapel Hill –
Genomics Science Building Design and Construction
Preparation 35,000,000
UNC Hospitals at Chapel Hill – Master Facilities Plan 3,000,000
Western Carolina University – New School of Health and
Gerontological Sciences Building Planning Funds 2,402,661
Dental Schools Planning Funds 7,000,000
TOTAL CAPITAL IMPROVEMENTS – GENERAL FUND $253,321,361
Water Resources Development Project Funds
SECTION 23.2.(a) The Department of Environment and Natural Resources shall allocate the funds appropriated in this act for water resources development projects to the following projects whose costs are as indicated:
Name of Project 2006‑2007
(1) Wilmington Harbor Deepening $ 5,275,000
(2) Morehead City Harbor Sand Management 1,200,000
(3) Manteo (Shallowbag) Bay Channel Maintenance ‑
(4) Wilmington Harbor Maintenance Dredging ‑
(5) Morehead City Harbor Maintenance Dredging 0
(6) Carolina Beach Renourishment 1,125,000
(7) Carolina Beach Renourishment (Kure Beach) 681,000
(8) Brunswick County Beaches Study 0
(9) Ocean Isle Beach Renourishment (Brunswick County) 435,000
(10) Beaufort Harbor Maintenance Dredging 300,000
(11) B. Everett Jordan Reservoir Water Supply Storage 100,000
(12) Aquatic Weed Control – Lake Gaston and Statewide 400,000
(13) Waterway Connecting Pamlico Sound to Beaufort Harbor (Carteret) 400,000
(14) John H. Kerr Reservoir Operations Evaluation 188,000
(15) Currituck Sound Water Management Study 386,000
(16) Surf City / North Topsail Beach Protection Study ‑
(17) West Onslow Beach (Topsail) Study (Pender County) 85,000
(18) Hurricane Steam Restoration – Western NC (Phase II) 2,000,000
(19) Hurricane Isabel
Emergency Management
Stream Cleanup (Phase
III)
850,000
(20) Bogue Banks Shore Protection Study (Carteret County) ‑
(21) Neuse River Basin Study 280,000
(22) Beach and Inlet Management Study 500,000
(23) Dredging Contingency Fund 2,295,000
(24) State – Local Projects 3,500,000
TOTALS $ 20,000,000
SECTION 23.2.(b) Where the actual costs are different from the estimated costs under subsection (a) of this section, the Department may adjust the allocations among projects as needed. If any projects funded under subsection (a) of this section are delayed and the budgeted State funds cannot be used during the 2006‑2007 fiscal year, or if the projects funded under subsection (a) of this section are accomplished at a lower cost, the Department may use the resulting fund availability to fund any of the following:
(1) U.S. Army Corps of Engineers project feasibility studies.
(2) U.S. Army Corps of Engineers projects whose schedules have advanced and require State‑matching funds in fiscal year 2006‑2007.
(3) State‑local water resources development projects.
Funds not expended or encumbered for these purposes shall revert to the General Fund at the end of the 2007‑2008 fiscal year.
SECTION 23.2.(c) The Department shall make semiannual reports on the use of these funds to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, and the Office of State Budget and Management. Each report shall include all of the following:
(1) All projects listed in this section.
(2) The estimated cost of each project.
(3) The date that work on each project began or is expected to begin.
(4) The date that work on each project was completed or is expected to be completed.
(5) The actual cost of each project.
The semiannual reports shall also show those projects advanced in schedule, those projects delayed in schedule, and an estimate of the amount of funds expected to revert to the General Fund.
Repairs and Renovations Reserve Allocation
SECTION 23.3. Of the funds in the Reserve for Repairs and Renovations for the 2006‑2007 fiscal year, forty‑six percent (46%) shall be allocated to the Board of Governors of The University of North Carolina for repairs and renovations pursuant to G.S. 143‑15.3A, in accordance with guidelines developed in The University of North Carolina Funding Allocation Model for Reserve for Repairs and Renovations, as approved by the Board of Governors of The University of North Carolina, and fifty‑four percent (54%) shall be allocated to the Office of State Budget and Management for repairs and renovations pursuant to G.S. 143‑15.3A.
Notwithstanding G.S. 143‑15.3A, the Board of Governors may allocate funds for the repair and renovation of facilities not supported from the General Fund if the Board determines that sufficient funds are not available from other sources and that conditions warrant General Fund assistance. Any such finding shall be included in the Board's submission to the Joint Legislative Commission on Governmental Operations on the proposed allocation of funds.
The Board of Governors and the Office of State Budget and Management shall consult with the Joint Legislative Commission on Governmental Operations prior to the allocation or reallocation of these funds.
include in the six‑year capital improvement plan the recommended funding sources for the projects proposed
SECTION 23.4. G.S. 143‑34.45 reads as rewritten:
"§ 143‑34.45. Six‑year capital improvement plan.
(a) The State capital improvement plan shall address the long‑term capital improvement needs of all State government agencies and shall incorporate all capital projects, however financed, proposed to meet those needs, except that transportation infrastructure projects shall be excluded. On or before December 31 of each even‑numbered year, the Director of the Budget shall prepare and transmit to the General Assembly a six‑year capital improvement plan. When preparing the plan, the Director of the Budget shall consider the capital improvement needs estimates submitted by State agencies as required in G.S. 143‑34.44. The plan shall be prepared in two parts.
(b) The first part of the
capital improvement plan shall set forth repair and renovations requirements
that, in the judgment of the Director of the Budget, must be met to protect and
preserve existing capital improvement facilities. General Fund expenditure
levels anticipated in this part of the plan shall be consistent with the
formula establishing the repair and renovation reserve in G.S. 143‑15.3A.The
plan shall identify individual projects in priority order by State agency and
shall specify the proposed means of financing.
(c) The second part of the
capital improvement plan shall set forth an integrated schedule for land
acquisition, new construction, or rehabilitation of existing facilities that,
in the judgment of the Director of the Budget, should be initiated within each
year of the six‑year planning period. The plan shall contain an
estimated schedule for each project, along with estimates of planning, design,
and construction cost. The plan shall contain all of the following for each
project:
(1) An estimate of land acquisition and construction or rehabilitation costs.
(2) The proposed means of financing the project. Where the means of financing would involve direct or indirect debt service obligations, the plan shall include a schedule of those obligations.
(3) An estimated schedule for the completion of the project."
use of existing plans for state construction
SECTION 23.5.(a) G.S. 143‑31.1 reads as rewritten:
"§
143‑31.1. Study Use of existing plans for State construction
projects; study and review of plans and specifications for building,
improvement, etc., projects.
(a) All State agencies shall use existing plans and specifications for construction projects, where feasible. Prior to designing a project, State agencies shall consult with the Department of Administration on the availability of appropriate existing plans and specifications and the feasibility of using them for a project.
(b) It shall be
the duty and responsibility of theThe Director of the Budget to shall
determine whether buildings, repairs, alterations, additions or
improvements to physical properties for which appropriations of State funds are
made have been designed for the specific purpose for which such appropriations
are made, that such projects have been designed giving proper consideration to
economy in first cost, in maintenance cost, in materials and type of
construction. Architectural features shall be selected which give proper
consideration to economy in design. The Director of the Budget shall have
prepared a complete study and review of all plans and specifications for such
projects and bids on same will not be received until the results of such study
and review have been incorporated in such plans and specifications, and until
economic conditions of the construction industry are considered by the Office
of State Budget and Management to be favorable to the letting of construction contracts.
The Director of the Budget may, when he considers it in the best interest of
the State to do so, terminate design contracts when it is documented that the
designer has failed to perform the conditions enumerated in the contract.
Notwithstanding G.S. 143‑135, the Director of the Budget may authorize the Department of Health and Human Services and the Department of Correction to use funds necessary for projects that correct deficiencies, improve living conditions, or renovate unneeded patient space for State office space."
SECTION 23.5.(b) G.S. 116‑31.11(a) reads as rewritten:
"(a) Notwithstanding G.S. 143‑341(3) and G.S. 143‑135.1, the Board shall, with respect to the design, construction, or renovation of buildings, utilities, and other property developments of The University of North Carolina requiring the estimated expenditure of public money of two million dollars ($2,000,000) or less:
(1) Conduct the fee negotiations for all design contracts and supervise the letting of all construction and design contracts.
(2) Develop procedures governing the responsibilities of The University of North Carolina and its affiliated and constituent institutions to perform the duties of the Department of Administration and the Director or Office of State Construction under G.S. 133‑1.1(d) and G.S. 143‑341(3).
(3) Develop procedures and reasonable limitations governing the use of open‑end design agreements, subject to G.S. 143‑64.34 and the approval of the State Building Commission.
(4) Use existing plans and specifications for construction projects, where feasible. Prior to designing a project, the Board shall consult with the Department of Administration on the availability of existing plans and specifications and the feasibility of using them for a project."
SECTION 23.5.(c) This section applies to construction projects on which design is begun after that date.
USE OF RECEIPTS OF THE AQUARIUMS
SECTION 23.6. Notwithstanding any other provision of law and pursuant to G.S. 143B‑289.44, the Department of Environment and Natural Resources shall use funds available in the North Carolina Aquariums Fund to pay the debt service related to the construction of a one million gallon aquarium tank at the aquarium on Roanoke Island, a one million gallon tank at the Fort Fisher aquarium, and improvements to Jennette's pier in Nags Head and the Emerald Isle pier.
Timber Sales Receipts for Capital Improvements at Agricultural Research Stations and Farms
SECTION 23.7. Section 11.2 of S.L. 2005‑276 reads as rewritten:
"SECTION 11.2. The sum of one million thirty‑three
thousand one hundred dollars ($1,033,100) shall be transferred from the
Department of Agriculture and Consumer Services' timber sales capital
improvement account in the Department of Agriculture and Consumer Services as
such funds become available during the 2005‑2006 fiscal year, during
the 2006‑2007 fiscal year and used by the Department for the
following capital improvements projects at agricultural research stations and
research farms:
(1) $378,000 for improvements at the swine facility at the Cherry Research Farm.
(2) $285,500 for renovation of dairy facilities at the Cherry Research Farm.
(3) $369,600 for land acquisition and development at the Tidewater Research Station."
Timber Sales Receipts for Land Acquisition at Piedmont Research Station
SECTION 23.8. The sum of one million seven hundred thousand dollars ($1,700,000) shall be transferred from the Department of Agriculture and Consumer Services' timber sales capital improvement account in the Department of Agriculture and Consumer Services as such funds become available during the 2006‑2007 fiscal year and shall be used by the Department for land acquisition at the Piedmont Research Station in Rowan County.
PLANT CONSERVATION PROGRAM FUNDS
SECTION 23.9. Section 11.3 of S.L. 2005‑276 reads as rewritten:
"SECTION 11.3. From
funds received from the sale of timber that are deposited with the State
Treasurer pursuant to G.S. 146‑30 to the credit of the Department of
Agriculture and Consumer Services in a capital improvement account, the sum of twenty
thousand dollars ($20,000)thirty thousand dollars ($30,000) for the 2006‑2007
fiscal year shall be transferred to the Department of Agriculture and
Consumer Services to be used by the Department for its plant conservation
program under Article 19B of Chapter 106 of the General Statutes for costs
incidental to the acquisition of land, such as land appraisals, land surveys,
title searches, and environmental studies.studies and for the
management of plant conservation program preserves owned by the Department."
PART XXIV. tax reductions
Reduce Sales Tax Rate Early
SECTION 24.1.(a) Section 34.13(c) of S.L. 2001‑424, as amended by Section 38.1 of S.L. 2003‑284, Section 9.1 of S.L. 2005‑144, and Section 33.1 of S.L. 2005‑276, reads as rewritten:
"SECTION 34.13.(c)
This section becomes effective October 16, 2001, and applies to sales made on
or after that date. This section is repealed effective for sales made on or
after July 1, 2007. This section does not affect the rights or liabilities
of the State, a taxpayer, or another person arising under a statute amended or
repealed by this section before the effective date of its amendment or repeal;
nor does it affect the right to any refund or credit of a tax that accrued under
the amended or repealed statute before the effective date of its amendment or
repeal."
SECTION 24.1.(b) G.S. 105‑164.4(a), as amended by subsection (a) of this section, reads as rewritten:
"(a) A privilege tax is
imposed on a retailer at the following percentage rates of the retailer's net
taxable sales or gross receipts, as appropriate. The general rate of tax is
four and one‑half percent (4 1/2%).one‑quarter percent
(4.25%).
…"
SECTION 24.1.(c) G.S. 105‑164.4(a), as amended by subsections (a) and (b) of this section, reads as rewritten:
"(a) A privilege tax is
imposed on a retailer at the following percentage rates of the retailer's net
taxable sales or gross receipts, as appropriate. The general rate of tax is
four and one‑quarter percent (4.25%).percent (4%).
…"
SECTION 24.1.(d) G.S. 105‑164.44F (a) reads as rewritten:
"(a) Amount. – The
Secretary must distribute to the cities part of the taxes imposed by G.S. 105‑164.4(a)(4c)
on telecommunications service. The Secretary must make the distribution within
75 days after the end of each calendar quarter. The amount the Secretary must
distribute is eighteen and three one‑hundredths percent (18.03%) eighteen
and seventy one‑hundredths percent (18.70%) of the net proceeds of
the taxes collected during the quarter, minus two million six hundred twenty
thousand nine hundred forty‑eight dollars ($2,620,948). This deduction is
one‑fourth of the annual amount by which the distribution to cities of
the gross receipts franchise tax on telephone companies, imposed by former G.S. 105‑120,
was required to be reduced beginning in fiscal year 1995‑96 as a result
of the "freeze deduction." The Secretary must distribute the
specified percentage of the proceeds, less the "freeze deduction"
among the cities in accordance with this section."
SECTION 24.1.(e) G.S. 105‑164.44F(a), as amended by subsection (d) of this section, reads as rewritten:
"(a) Amount. – The
Secretary must distribute to the cities part of the taxes imposed by G.S. 105‑164.4(a)(4c)
on telecommunications service. The Secretary must make the distribution within
75 days after the end of each calendar quarter. The amount the Secretary must
distribute is eighteen and seventy one‑hundredths percent (18.70%)nineteen
and forty‑two one‑hundredths percent (19.42%) of the net
proceeds of the taxes collected during the quarter, minus two million six
hundred twenty thousand nine hundred forty‑eight dollars ($2,620,948).
This deduction is one‑fourth of the annual amount by which the
distribution to cities of the gross receipts franchise tax on telephone
companies, imposed by former G.S. 105‑120, was required to be
reduced beginning in fiscal year 1995‑96 as a result of the "freeze
deduction." The Secretary must distribute the specified percentage of the
proceeds, less the "freeze deduction" among the cities in accordance
with this section."
SECTION 24.1.(f) Subsection (b) of this section becomes effective January 1, 2007, and applies to sales made on or after that date. Subsection (d) of this section becomes effective January 1, 2007, and applies to taxes collected on or after that date. Subsection (c) of this section becomes effective July 1, 2007, and applies to sales made on or after that date. Subsection (e) of this section becomes effective July 1, 2007, and applies to taxes collected on or after that date. The remainder of this section is effective when it becomes law.
reduce Income Tax rate applicable to most small businesses early
SECTION 24.2.(a) Section 39.1 of S.L. 2003‑284, as amended by Section 36.1(a) of S.L. 2005‑276, is repealed.
SECTION 24.2.(b) G.S. 105‑134.2(a), as amended by subsection (a) of this section, reads as rewritten:
"(a) A tax is imposed upon the North Carolina taxable income of every individual. The tax shall be levied, collected, and paid annually and shall be computed at the following percentages of the taxpayer's North Carolina taxable income.
(1) For married individuals who file a joint return under G.S. 105‑152 and for surviving spouses, as defined in section 2(a) of the Code:
Over Up To Rate
0 $21,250 6%
$21,250 $100,000 7%
$100,000 $200,000 7.75%
$200,000
NA
8.25%8%
(2) For heads of households, as defined in section 2(b) of the Code:
Over Up To Rate
0 $17,000 6%
$17,000 $80,000 7%
$80,000 $160,000 7.75%
$160,000
NA
8.25%8%
(3) For unmarried individuals other than surviving spouses and heads of households:
Over Up To Rate
0 $12,750 6%
$12,750 $60,000 7%
$60,000 $120,000 7.75%
$120,000
NA
8.25%8%
(4) For married individuals who do not file a joint return under G.S. 105‑152:
Over Up To Rate
0 $10,625 6%
$10,625 $50,000 7%
$50,000 $100,000 7.75%
$100,000
NA
8.25%8%"
.
SECTION 24.2.(c) G.S. 105‑134.2(a), as amended by subsections (a) and (b) of this section, reads as rewritten:
"(a) A tax is imposed upon the North Carolina taxable income of every individual. The tax shall be levied, collected, and paid annually and shall be computed at the following percentages of the taxpayer's North Carolina taxable income.
(1) For married individuals who file a joint return under G.S. 105‑152 and for surviving spouses, as defined in section 2(a) of the Code:
Over Up To Rate
0 $21,250 6%
$21,250 $100,000 7%
$100,000
$200,000NA
7.75%
$200,000
NA
8%
(2) For heads of households, as defined in section 2(b) of the Code:
Over Up To Rate
0 $17,000 6%
$17,000 $80,000 7%
$80,000
$160,000NA
7.75%
$160,000
NA
8%
(3) For unmarried individuals other than surviving spouses and heads of households:
Over Up To Rate
0 $12,750 6%
$12,750 $60,000 7%
$60,000
$120,000NA
7.75%
$120,000
NA
8%
(4) For married individuals who do not file a joint return under G.S. 105‑152:
Over Up To Rate
0 $10,625 6%
$10,625 $50,000 7%
$50,000
$100,000NA
7.75%
$100,000
NA
8%"
.
SECTION 24.2.(d) Subsection (b) of this section is effective for taxable years beginning on or after January 1, 2007. Subsection (c) of this section is effective for taxable years beginning on or after January 1, 2008. The remainder of this section is effective when it becomes law.
CAP THE VARIABLE WHOLESALE COMPONENT OF THE MOTOR FUEL TAX RATE AT ITS CURRENT RATE FOR ONE YEAR.
SECTION 24.3(a). Notwithstanding G.S. 105-449.80(a), for the period July 1, 2006, through June 30, 2007, the variable wholesale component of the motor fuel excise tax rate may not exceed twelve and four-tenths cents (12.4¢) a gallon.
PART XXV. MInimum wage increase
Increase Minimum Wage
SECTION 25.1.(a) G.S. 95‑25.3(a) reads as rewritten:
"(a) Every employer
shall pay to each employee who in any workweek performs any work, wages of at
least the minimum wage set forth in paragraph 1 of section 6(a) of the Fair
Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage may change from time to
time,six dollars and fifteen cents ($6.15) per hour, except as
otherwise provided in this section."
SECTION 25.1.(b) This section becomes effective September 1, 2006.
PART XXVI. set regulatory fees
Set Utilities Regulatory Fee
SECTION 26.1.(a) The percentage rate to be used in calculating the public utility regulatory fee under G.S. 62‑302(b)(2) is twelve‑hundredths of one percent (0.12%) for each public utility's North Carolina jurisdictional revenues earned during each quarter that begins on or after July 1, 2006.
SECTION 26.1.(b) The electric membership corporation regulatory fee imposed under G.S. 62‑302(b1) for the 2006‑2007 fiscal year is two hundred thousand dollars ($200,000).
Set Insurance Regulatory Fee
SECTION 26.2. The percentage rate to be used in calculating the insurance regulatory charge under G.S. 58‑6‑25 is five and one‑half percent (5.5%) for the 2006 calendar year.
PART XXVII. special indebtedness projects
Hospital and Museum Special Indebtedness
SECTION 27.1.(a) In accordance with G.S. 142‑83, this subsection authorizes the issuance or incurrence of special indebtedness in the following maximum aggregate principal amounts to finance the costs of the following projects. The table below provides the maximum principal amounts. The State, with the prior approval of the State Treasurer and the Council of State, as provided in Article 9 of Chapter 142 of the General Statutes, is authorized to issue or incur special indebtedness in order to provide funds to the State to be used, together with other available funds, to pay the cost of these projects. Each project is listed below in its order of priority.
Aggregate Project
Maximum
$20,000,000 Completing the construction and equipping of the Central Regional Psychiatric Hospital for the Department of Health and Human Services.
$145,500,000 Acquiring, constructing, and equipping a new Eastern Regional Psychiatric Hospital for the Department of Health and Human Services.
$40,000,000 Acquiring, constructing, and equipping an expansion for the North Carolina Museum of Art, but not including the acquisition of additional land.
TOTAL:
$205,500,000
SECTION 27.1.(b) In accordance with G.S. 142‑83, this subsection authorizes the issuance or incurrence of special indebtedness in the maximum aggregate principal amount of one hundred sixty‑two million eight hundred thousand dollars ($162,800,000) to finance the capital facility costs of a new Western Regional Psychiatric Hospital for the Department of Health and Human Services. The State, with the prior approval of the State Treasurer and the Council of State, as provided in Article 9 of Chapter 142 of the General Statutes, is authorized to issue or incur special indebtedness in order to provide funds to the State to be used, together with other available funds, to pay the costs of acquiring, constructing, and equipping the project described in this subsection. The special indebtedness authorized by this subsection may not be issued before July 1, 2008, unless the State Treasurer makes a specific written finding that an earlier issuance date is in the best interests of the State.
SECTION 27.1.(c) This section is effective when it becomes law.
PART XXVIII. MISCELLANEOUS PROVISIONS
SECTION 28.1. The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.
SECTION 28.2.(a) The Senate Appropriations Committee Report on the Continuation, Expansion, and Capital Budgets shall indicate action by the General Assembly on this act and shall therefore be used to construe this act, as provided in G.S. 143‑15 of the Executive Budget Act, and for these purposes shall be considered a part of this act and as such shall be printed as a part of the Session Laws.
The General Assembly amended the requested adjustments to the budgets submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission in accordance with the steps that follow, and the line‑item detail in the budget enacted by the General Assembly may be derived accordingly:
(1) The base budget was adjusted in accordance with the base budget cuts and additions that were set out in the Senate Appropriations Committee Report on the Continuation, Expansion, and Capital Budgets.
(2) Transfers of funds supporting programs were made in accordance with the Senate Appropriations Committee Report on the Continuation, Expansion, and Capital Budgets.
In the event that there is a conflict between the line‑item budget certified by the Director of the Budget and the budget enacted by the General Assembly, the budget enacted by the General Assembly shall prevail.
MOST TEXT APPLIES ONLY TO 2006‑2007
SECTION 28.3. Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2006‑2007 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2006‑2007 fiscal year.
APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
SECTION 28.4.(a) Except where expressly repealed or amended by this act, the provisions of S.L. 2005‑276 and S.L. 2005‑345 remain in effect.
SECTION 28.5. The headings to the parts and sections of this act are a convenience to the reader and are for reference only. The headings do not expand, limit, or define the text of this act, except for effective dates referring to a part.
SECTION 28.6. If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.
SECTION 28.7. Except as otherwise provided, this act becomes effective July 1, 2006.