GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2001

 

 

SESSION LAW 2001-424

SENATE BILL 1005

 

 

AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.  

 

 

The General Assembly of North Carolina enacts:

 

PART i.  INtroduction and title of act

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

INTRODUCTION

SECTION 1.1.  The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget.  Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

title of act

SECTION 1.2.  This act shall be known as the "Current Operations and Capital Improvements Appropriations Act of 2001."

 

PART iI.  current operations and expansion/general fund

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

CURRENT OPERATIONS AND EXPANSION/GENERAL FUND

SECTION 2.1.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the biennium ending June 30, 2003, according to the following schedule:

Current Operations - General Fund                                2001-2002              2002-2003

 

EDUCATION

Community Colleges System Office                                    643,695,459           643,195,459

 

Department of Public Instruction                                      5,879,640,364        5,922,188,546

 

University of North Carolina - Board of Governors

      Appalachian State University                                             85,231,527             85,494,527

      East Carolina University

            Academic Affairs                                                        120,720,504           121,983,572

            Health Affairs                                                                46,062,074             46,062,074

      Elizabeth City State University                                          21,649,628             21,649,628

      Fayetteville State University                                              30,796,571             30,796,571

      NC Agricultural and Technical University                        59,512,768             59,512,768

      North Carolina Central University                                    44,381,352             44,381,352

      North Carolina School of the Arts                                    16,408,836             16,682,455

      North Carolina State University

            Academic Affairs                                                        265,376,229           265,861,181

            Agricultural Extension                                                  37,434,400             37,434,400

            Agricultural Research                                                   46,704,489             46,678,373

      University of North Carolina at Asheville                        25,479,187             25,635,286

      University of North Carolina at Chapel Hill

            Academic Affairs                                                        199,610,018           200,119,532

            Health Affairs                                                              154,439,887           156,170,103

            Area Health Education Centers                                    46,072,336             46,072,336

      University of North Carolina at Charlotte                        95,659,924             96,131,150

      University of North Carolina at Greensboro                    93,245,204             93,322,528

      University of North Carolina at Pembroke                       24,591,556             24,532,869

      University of North Carolina at Wilmington                    59,584,977             59,936,359

      Western Carolina University                                             51,888,048             52,156,307

      Winston-Salem State University                                       28,095,527             28,519,116

      General Administration                                                      40,280,589             41,276,013

      University Institutional Programs                                     40,397,754             41,247,754

      Related Educational Programs                                        103,637,912           103,637,912

      North Carolina School of Science and Mathematics       11,487,156             11,839,342

      UNC Hospitals at Chapel Hill                                            40,587,322             40,587,322

Total                                                                                      1,789,335,775        1,797,720,830

                       

HEALTH AND HUMAN SERVICES                                                      

                                                                                                                       

Department of Health and Human Services                                                                                

      Office of the Secretary                                                       48,108,705             48,008,705

      Division of Aging                                                                29,531,910             29,531,910

      Division of  Child Development                                      289,058,396           289,058,396

      Division of Education Services                                         69,581,525             69,581,525

      Division of Public Health                                                108,459,083           107,434,083

      Division of Social Services                                             188,690,237           194,763,531

      Division of Medical Assistance                                   1,981,237,528        2,219,046,892

      NC Health Choice                                                               32,987,142             37,487,142

      Division of Blind Services/Deaf/HH                                10,168,115             10,168,115

      Division of Mental Health                                               581,394,627           581,068,627

      Division of Facility Services                                             15,246,969             15,442,236

      Division of Vocational Rehabilitation                              42,768,956             42,088,956

Total                                                                                      3,397,233,193        3,643,680,118

 

NATURAL AND ECONOMIC RESOURCES                                       

 

Department of Agriculture and Consumer Services              55,368,040             55,168,040

 

Department of Commerce                                                                                                           

      Commerce                                                                           59,280,374             44,280,374

      Commerce State-Aid                                                            7,125,000               5,200,000

      NC Biotechnology Center                                                    5,270,468               6,270,468

      Rural Economic Development Center                                4,091,055               5,090,749

 

Department of Environment and Natural Resources                                                                 

      Environment and Natural Resources                               159,072,700           158,722,700

      Clean Water Management Trust Fund                               40,000,000             70,000,000

 

Office of the Governor - Housing Finance Agency                 5,300,000               5,300,000

 

Department of Labor                                                                15,517,906             15,117,906

 

JUSTICE AND PUBLIC SAFETY                                                           

 

Department of Correction                                                     923,995,281           930,964,916

 

Department of Crime Control and Public Safety                   31,749,131             28,493,506

 

Judicial Department                                                                305,491,140           305,465,135

Judicial Department - Indigent Defense                                 70,181,601             68,867,771

 

Department of Justice                                                              73,142,775             73,720,793

 

Department of Juvenile Justice and

      Delinquency Prevention                                                   140,800,030           142,554,017

 

GENERAL GOVERNMENT                                                                   

 

Department of Administration                                                 61,085,019             60,815,019

 

Office of Administrative Hearings                                            2,795,155               2,795,155

 

Department of State Auditor                                                    11,864,673             11,864,673

 

Office of State Controller                                                        11,523,868             11,523,868

 

Department of Cultural Resources

      Cultural Resources                                                             60,227,419             59,427,419

      Roanoke Island Commission                                                1,859,463               1,859,463

 

State Board of Elections                                                             3,186,269               3,186,269

 

General Assembly                                                                     39,383,848             39,553,848

 

Office of the Governor

      Office of the Governor                                                         5,442,905               5,442,905

      Office of State Budget and Management                            5,458,547               5,354,938

      Mapping and Surveying                                                                         0                               0

      Reserve for Special Appropriations                                    3,635,000               3,080,000

 

Department of Insurance

      Insurance                                                                              23,750,037             23,527,552

      Insurance -- Volunteer Safety Workers'

            Compensation                                                                  1,050,000               4,500,000

 

Office of Lieutenant Governor                                                     669,545                   669,545

 

Department of Revenue                                                            77,100,467             77,955,704

 

Rules Review Commission                                                            325,795                   325,795

 

Department of Secretary of State                                              8,481,776               8,286,850

 

Department of State Treasurer

      State Treasurer                                                                       7,216,817               7,216,817

      State Treasurer -- Retirement for Fire and

            Rescue Squad Workers                                                 10,301,897             12,379,780

 

TRANSPORTATION

 

Department of Transportation                                                  10,030,000             13,393,341

 

RESERVES AND DEBT SERVICE

 

Contingency and Emergency                                                      5,000,000               5,000,000

 

Reserve for Compensation Increases                                   193,842,000           193,842,000

 

Reserve for Salary Adjustments                                                    500,000                   500,000

 

State Employee Health Benefit Plan

 

Statewide Reserve for State Health Plan                              114,000,000           200,000,000

 

State Budget Office Reserve for State Health

      Plan                                                                                       36,000,000

 

Reserve for Teachers' and State Employees'

      Retirement Rate Adjustment                                          (241,002,720)        (241,002,720)

 

Reserve for Consolidated Judicial Retirement

      Rate Adjustment                                                                   (2,265,000)            (2,265,000)

 

Reserve for Mental Health Reform                                         47,525,675                               0

 

Reserve to Implement HIPPA                                                  15,000,000                               0

 

Reserve for Information Technology Rate

      Adjustment                                                                           (4,000,000)            (4,000,000)

 

Debt Service

General Debt Service                                                             250,822,092           352,266,860

Federal Reimbursement                                                              1,155,948               1,155,948

 

GRAND TOTAL CURRENT OPERATIONS -

      GENERAL FUND                                                   $14,368,256,787   $14,780,657,357

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

GENERAL FUND AVAILABILITY STATEMENT

SECTION 2.2.(a)  The General Fund availability used in developing the 2001-2003 biennial budget is shown below:

                                                                                                             2001-2002               2002-2003

General Fund Budget Reform Statement                                 ($ Millions)            ($ Millions)

BUDGET REFORM STATEMENT

 

1.   Composition of the 2001-2002 beginning availability:

      a.   Unappropriated balance                                                                 0.0

      b.   Revenue collections in fiscal year 2000-2001 in

            excess of authorized estimates                                                      0.0

      c.   Unexpended appropriations during fiscal year

            2000-2001 (Reversions)                                                               0.0

      Beginning Unreserved Credit Balance                                                0.0

2.   Revenues Based on Existing Tax Structure                              13,303.4                  13,979.0

3.   Non-Tax Revenues:

            Investment Income                                                                     164.0                       171.0

            Judicial Fees                                                                               112.8                       115.9

            Disproportionate Share                                                              107.0                       107.0

            Insurance                                                                                       45.5                         47.4

            Other Non-Tax Revenues                                                             96.5                         97.3

            Highway Trust Fund Transfer                                                    170.0                       170.0

            Highway Fund Transfer                                                                14.5                         15.3

      Subtotal                                                                                        14,013.7                  14,702.9

4.   Other Adjustments

      IRC Conformity Adjustment (included in

            House Bill 232)                                                                             (3.4)                         (3.8)

      North Carolina Railroad General Fund

            Repayment                                                                                     19.0

      Senate Bill 353 Enhance Department of

            Revenue Collections                                                                    50.0                         50.0

      Education/Human Services/Mental Health/

            Revenue Initiatives                                                                     435.3                       614.4

      House Bill 1157 Implementation - Closure

            of Tax Loopholes                                                                          61.3                         64.3

      House Bill 232 Implementation - Budget

            Revenue Provisions (Accelerations)                                        112.1                            6.0

      Increase in Nontax Revenues -- Patients'

            Bill of Rights (Senate Bill 199)                                                    0.4                            0.9

Transfer/Adjustment of Cash from Special,

            Trust, Internal Service, and Reserve Funds                                 23.4                            0.5

Court Fee Funds to State Bar                                                                   (0.8)                         (1.7)

Credit to the Savings Reserve Account                                               (181.0)                  ______

        Subtotal                                                                                           516.3                       730.6

TOTAL GENERAL FUND AVAILABILITY                           $14,530.0               $15,433.5

 

SECTION 2.2.(b)  Notwithstanding the provisions of Section 7.2.(a) of S.L. 2000-67, nineteen million dollars ($19,000,000) of the North Carolina Railroad Company dividends received by the State during the 2000-2001 fiscal year and the 2001-2002 fiscal year shall:  (i) be applied to increase the capital of the North Carolina Railroad Company, (ii) reduce the obligations described in subsection (c) of Section 32.30 of S.L. 1997-443, as amended by subsection (d) of Section 27.11 of S.L. 1999-237, and (iii) be deposited in the General Fund.

SECTION 2.2.(d)  Effective July 1, 2001, cash balances remaining in special funds on June 30, 2001, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) according to the schedule that follows.  These funds shall be used to support General Fund appropriations for the 2001-2002 fiscal year.

 

Fund                                                                                                            Amount Transferred

 

Department of Agriculture and Consumer Services

      Budget Code 23701, Fund Code 2201 (Warehouse

            Investment Fund)                                                                                               $500,000

 

Department of Environment and Natural Resources

 

      Budget Code 24300, Fund Code 2106 (DEH - Sleep Products)                             46,437

      Budget Code 24300, Fund Code 2331 (DAQ - Air Permits)                                  77,889

      Budget Code 24300, Fund Code 2735 (DLR - Sedimentation Fees)                   148,562

      Budget Code 24300, Fund Code 2620 (DLR - Land Env Controls) 111,261

      Budget Code 24300, Fund Code 2740 (DLR - Dam Safety Account)                    18,522

      Budget Code 64305, Fund Code 6372 (DWM - Inactive Hazardous Sites

            Cleanup)                                                                                                               499,263

      Budget Code 64305, Fund Code 6373 (DWM - Emergency Response

            Fund)                                                                                                                       49,771

      Budget Code 24300, Fund Code 2341 (DWQ - Water Permits)                          371,682

      Budget Code 64306, Fund Code 6341 (DWQ - WW Treatment

            Maintenance & Repair)                                                                                         43,256

      Budget Code 24300, Fund Code 2335 (DWQ - Lab Certification Fees)               16,371

      Budget Code 24300, Fund Code 2130 (DWQ - Well Construction Fund)            18,134

      Budget Code 24300, Fund Code 2310 (DWQ - Oil Pollution Control)                  8,170

      Budget Code 24303, Fund Code 2980 (DWQ - Wetlands Restoration)          3,400,000

 

Department of Commerce

      Budget Code 24610, Fund Code 2431 (International Trade Show Fund)             $77,338

Department of Correction

      Budget Code 24502 (Inmate Canteen/Welfare Fund)                                            380,000

 

SECTION 2.2.(e)  Effective October 1, 2001, the sum of one million two hundred thousand dollars ($1,200,000) shall be transferred from the Department of Administration, Budget Code 74100, Fund Code 7211 (Motor Fleet Management) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001-2002 fiscal year.

Effective April 1, 2002, the sum of two million dollars ($2,000,000) shall be transferred from the Department of Administration, Budget Code 74100, Fund Code 7211 (Motor Fleet Management) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001-2002 fiscal year.

SECTION 2.2.(f)  The transfer of cash from Department of Correction, Budget Code 74500, Fund Code 7100 (Prison Enterprises) to Nontax Budget Code 19978 (Intra State Transfers) shall be increased by one million dollars ($1,000,000), effective July 1, 2001, for the 2001-2002 fiscal year.

The transfer of cash from Department of Correction, Budget Code 74500, Fund Code 7100 (Prison Enterprises) to Nontax Budget Code 19978 (Intra State Transfers) shall be increased by five hundred thousand dollars ($500,000), effective July 1, 2002, for the 2002-2003 fiscal year and for subsequent fiscal years.

SECTION 2.2.(g)  Notwithstanding G.S. 143-15.2 and G.S. 143-15.3, for the 2000-2001 fiscal year only, funds shall not be reserved to the Savings Reserve Account, and the State Controller shall not transfer funds from the unreserved credit balance to the Savings Reserve Account on June 30, 2001.  The State Controller shall credit the sum of one hundred eighty-one million dollars ($181,000,000) from the General Fund to the Savings Reserve Account on July 1, 2001.  This is not an "appropriation made by law", as that phrase is used in Article V, Section 7(2) of the North Carolina Constitution.

This subsection becomes effective June 30, 2001.

SECTION 2.2.(h)  Notwithstanding G.S. 143-15.3B(a) for the 2001-2003 fiscal biennium only, the appropriation to the Clean Water Management Trust Fund for the 2001-2002 fiscal year is only forty million dollars ($40,000,000) as provided by this act and is only seventy million dollars ($70,000,000) for the 2002-2003 fiscal year as provided by this act.  The funds appropriated by this act to the Clean Water Management Trust Fund shall be used as provided by G.S. 143-15.3B(b).

SECTION 2.2.(i)  Effective November 1, 2001, the sum of three million dollars ($3,000,000) shall be transferred from the Office of Information Technology Services, Budget Code 74660, Fund Code 7100 to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001-2002 fiscal year.

Effective February 1, 2002, the sum of four million dollars ($4,000,000) shall be transferred from the Office of Information Technology Services, Budget Code 74660, Fund Code 7100 to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001-2002 fiscal year.

Effective June 15, 2002, the sum of three million dollars ($3,000,000) shall be transferred from the Office of Information Technology Services, Budget Code 74660, Fund Code 7100 to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2001-2002 fiscal year.

The Office of Information Technology Services shall not increase rates to offset any reductions required by this act.

SECTION 2.2.(j)  Notwithstanding the provisions of G.S. 105-187.19(b), effective for taxes levied during the 2001-2002 fiscal year, the Secretary of Revenue shall credit to the General Fund the net tax proceeds that G.S. 105-187.19(b) directs the Secretary to credit to the Scrap Tire Disposal Account.

Notwithstanding the provisions of G.S. 105-187.24 effective for taxes levied during the 2001-2002 fiscal year, the Secretary of Revenue shall credit to the General Fund the net tax proceeds that G.S. 105-187.24 directs the Secretary to credit to the White Goods Management Account.

 

PART iII.  current operations and expansion/highway fund

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND

SECTION 3.1.  Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the biennium ending June 30, 2003, according to the following schedule:

 

Current Operations - Highway Fund                        2001-2002                     2002-2003

 

(1)     Transportation admin. (84210)                            $69,195,895                  $69,195,895

(2)     Transportation operations (84220)                       28,801,650                     28,801,650

(3)     Transportation programs (84230)

           State construction

               Primary                                                                         -                                       -

               Secondary                                                            87,462,000                     89,387,000

               Urban                                                                   14,000,000                     14,000,000

               Public access                                                         2,000,000                       2,000,000

               Spot safety                                                             9,100,000                       9,100,000

               Contingency                                                        15,000,000                     10,000,000

           Federal aid match                                                      5,212,266                       5,212,266

           Maintenance                                                          578,632,263                  571,609,292

           Asphalt plant/OSHA                                                     425,000                          425,000

           Capital                                                                        1,634,000

           Ferry operations                                                      19,747,132                     19,747,132

           Aid to municipalities                                              87,462,000                     89,387,000

           Rail                                                                           31,125,000                     10,575,000

           Public transit                                                           64,460,834                     64,460,834

           Airports                                                                      5,000,000                                        

(4)     Governor's highway safety (84240)                            266,693                          266,693

(5)     Transportation regulation (84260)                        98,654,012                     98,649,802

(6)     Reserves and transfers (84270)                          200,511,255                  205,084,808

 

GRAND TOTAL CURRENT OPERATIONS

AND EXPANSION                                                   $1,318,690,000             $1,287,902,372

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

HIGHWAY FUND AVAILABILITY STATEMENT

SECTION 3.2.  The Highway Fund availability used in developing the 2001-2003 biennial budget is shown below:

 

Highway Fund Budget Reform Statement                 2001-2002                          2002-2003

 

Beginning Credit Balance                                        $     14,860,000                                       -

Estimated Revenue                                                     1,303,280,000              $1,311,720,000

Additional Reversions                                                           550,000                                       -

                                                                                                                                                        

Total Highway Fund Availability                       $1,318,690,000              $1,311,720,000

 

PART iv.  highway trust fund appropriations

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

SECTION 4.1.  Appropriations from the Highway Trust Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the biennium ending June 30, 2003, according to the following schedule:

 

Current Operations - Highway Trust Fund              2001-2002                    2002-2003

 

Intrastate System                                                           $464,295,516                $489,403,290

Urban Loops                                                                    187,741,771                  197,894,308

Aid to Municipalities                                                        48,715,429                     51,349,821

Total for Secondary Roads                                               83,827,858                     87,445,392

Program Administration                                                   34,142,426                     36,181,189

Transfer to General Fund                                                170,000,000                  170,000,000

 

GRAND TOTAL CURRENT OPERATIONS

AND EXPANSION                                                      $988,723,000             $1,032,274,000

 

PART V.  BLOCK GRANTS

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson

DHHS BLOCK GRANTS

SECTION 5.1.(a)  Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2002, according to the following schedule:

 

COMMUNITY SERVICES BLOCK GRANT

 

01.       Community Action Agencies                                                      $ 14,160,375

 

02.       Limited Purpose Agencies                                                                  979,017

 

03.       Department of Health and Human Services

to administer and monitor

the activities of the

Community Services Block Grant                                                      500,000

 

TOTAL COMMUNITY SERVICES BLOCK GRANT                                $ 15,639,392

 

SOCIAL SERVICES BLOCK GRANT

 

01.       County departments of social services                                      $ 27,395,663

(Transfer from TANF - $4,500,000)

 

02.       Allocation for in-home services provided

by county departments of

social services                                                                                   2,101,113

 

03.       Division of Mental Health, Developmental

Disabilities, and Substance Abuse Services                                    3,234,601

 

04.       Division of Services for the Blind                                                   3,105,711

 

05.       Division of Facility Services                                                               426,836

 

06.       Division of Aging - Home and Community

Care Block Grant                                                                               1,840,234

 

07.       Child Care Subsidies                                                                         3,000,000

 

08.       Division of Vocational Rehabilitation -

United Cerebral Palsy                                                                            71,484

 

09.       State administration                                                                          1,693,368

 

10.       Child Medical Evaluation Program                                                     238,321

 

11.       Adult day care services                                                                     2,155,301

 

12.       Comprehensive Treatment Services

Program                                                                                                 750,000

 

13.       Transfer to Preventive Health Services

Block Grant for emergency medical services                                   213,128

 

14.       Transfer to Preventive Health Services Block

Grant for HIV/AIDS Prevention Activities                                        395,789

 

15.       Department of Administration

for the N.C. State Commission of Indian Affairs

In-Home Services Program for the Elderly                                       203,198

 

16.       Division of Vocational Rehabilitation -

Easter Seals Society                                                                             116,779

 

17.       UNC-CH CARES Program for training and

consultation services                                                                            247,920

 

18.       Office of the Secretary - Office of Economic

Opportunity for N.C. Senior Citizens'

Federation for outreach services to

low-income elderly persons                                                                  41,302

 

19.       Transfer from TANF Block Grant for

Division of Social Services - Child

Caring Agencies                                                                                1,500,000

 

20.       Division of Mental Health,

Developmental Disabilities, and

Substance Abuse Services - Developmentally

Disabled Waiting List for services                                                  5,000,000

 

21.       Transfer to Maternal and Child Health Block

Grant for Newborn Screenings                                                              90,611

 

22.       Transfer to Preventive Health Services Block

Grant for HIV/AIDS education, counseling, and

testing                                                                                                      66,939

 

TOTAL SOCIAL SERVICES BLOCK GRANT                                           $ 53,888,298

 

LOW-INCOME ENERGY BLOCK GRANT

 

01.       Energy Assistance Programs                                                        $ 8,092,113

 

02.       Crisis Intervention                                                                             5,795,825

 

03.       Administration                                                                                   1,984,934

 

04.       Weatherization Program                                                                   2,684,116

 

05.       Department of Administration -

N.C. State Commission of Indian Affairs                                             39,765

 

06.       Heating Air Repair and Replacement Program                               1,252,588

 

TOTAL LOW-INCOME ENERGY BLOCK GRANT                                 $ 19,849,342

 

MENTAL HEALTH SERVICES BLOCK GRANT

 

01.       Provision of community-based

services in accordance with the

Mental Health Study Commission's

Adult Severe and Persistently

Mentally Ill Plan                                                                             $ 5,192,826

 

02.       Provision of community-based

services to children                                                                           2,378,540

 

03.       Establish Child Residential

Treatment Services Program                                                            1,500,000

 

04.       Administration                                                                                      783,911

 

TOTAL MENTAL HEALTH SERVICES BLOCK GRANT                          $ 9,855,277

 

SUBSTANCE ABUSE PREVENTION

AND TREATMENT BLOCK GRANT

 

01.       Provision of community-based

alcohol and drug abuse services,

tuberculosis services, and services

provided by the Alcohol and Drug Abuse

Treatment Centers                                                                       $ 14,501,711

 

02.       Continuation of services for

pregnant women and women

with dependent children                                                                    6,007,303

 

03.       Continuation of services to

IV drug abusers and others at risk

for HIV diseases                                                                                5,209,934

 

04.       Provision of services to children

 and adolescents                                                                                 6,839,190

 

05.       Juvenile Services - Family Focus                                                        774,414

 

06.       Child Residential Treatment

Services Program                                                                                 700,000

 

07.       Administration                                                                                   2,423,049

 

TOTAL SUBSTANCE ABUSE PREVENTION

AND TREATMENT BLOCK GRANT                                                         $ 36,455,601

 

CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

 

01.       Child care subsidies                                                                   $148,343,839

 

02.       Quality and availability initiatives                                                  17,259,661

 

03.       Administrative expenses                                                                   6,550,000

 

04.       Transfer from TANF Block Grant for

child care subsidies                                                                         76,675,000

 

TOTAL CHILD CARE AND DEVELOPMENT FUND

BLOCK GRANT                                                                                           $248,828,500

 

TEMPORARY ASSISTANCE TO NEEDY FAMILIES

(TANF) BLOCK GRANT

 

01.       Work First Cash Assistance                                                      $114,181,958

 

02.       Work First County Block Grants                                                   92,018,855

 

03.       Transfer to the Child Care and

Development Fund Block Grant

for child care subsidies                                                                  76,675,000

 

04.       Allocation to the Division of Mental

Health, Developmental Disabilities, and

Substance Abuse Services for Work First

substance abuse screening, diagnostic, and

support treatment services and drug testing                                    3,500,000

 

05.       Cash Assistance Reserve                                                                11,676,624

 

06.       Allocation to the Division of Social

Services for staff development                                                           500,000

 

07.       Reduction of out-of-wedlock births                                                1,440,000

 

08.       Substance Abuse Services for Juveniles                                         1,182,280

 

09.       Special Children Adoption Fund                                                      2,811,687

 

10.       Business Process Reengineering

Project Reserve                                                                                 3,000,000

 

11.       Work First Job Retention - NC Rural

Center ($270,000)

Work Central Career Advancement

Center ($380,000)                                                                               650,000

 

12.       Allocation to the Division of Public Health

for teen pregnancy prevention                                                          2,015,335

 

13.       Transfer to Social Services Block Grant

for Child Caring Agencies                                                                1,500,000

 

14.       Child Care Subsidies for TANF Recipients                                  26,621,241

 

15.       Work First Housing Initiative

- Existing programs ($1,800,000)

- New programs ($900,000)                                                            2,700,000

 

16.       Allocation to the Division of Social

Services for Domestic Violence

Prevention and Awareness                                                                   900,000

 

17.       County Child Protective Services,

Foster Care, and Adoption Workers                                                2,727,550

 

18.       Intensive Family Preservation Program                                          1,800,000

 

19.       Work First/Boys and Girls Clubs                                                        900,000

 

20.       Transfer to Social Services Block Grant for

County Departments of Social Services for

Children's Services                                                                            4,500,000

 

21.       Support Our Students - Department of

Juvenile Justice and Delinquency

Prevention                                                                                          2,475,607

 

22.       Residential Substance Abuse Services

for Women With Children                                                               4,500,000

 

23.       Domestic Violence Services

for Work First Families                                                                    1,800,000

 

24.       After-School Services for

At-Risk Children                                                                               2,700,000

 

25.       Division of Social Services -

Administration                                                                                      500,000

 

26.       Child Welfare workers and services for

local departments of social services                                               7,654,841

 

27.       Child Welfare Training                                                                     2,000,000

 

28.       Individual Development Accounts                                                      180,000

 

TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES

(TANF) BLOCK GRANT                                                                             $373,110,978

 

MATERNAL AND CHILD HEALTH BLOCK GRANT

 

01.       Healthy Mothers/Healthy Children

Block Grants to Local Health

Departments                                                                                       9,838,074

 

02.       High-Risk Maternity Clinic Services,

Perinatal Education and Training,

Childhood Injury Prevention,

Public Information and Education, and

Technical Assistance to Local Health

Departments                                                                                       2,012,102

 

03.       Services to Children With Special Health

Care Needs                                                                                         5,078,647

 

04.       Transfer from Social Services Block Grant

for Newborn Screenings                                                                        90,611

 

TOTAL MATERNAL AND CHILD

HEALTH BLOCK GRANT                                                                           $ 17,019,434

 

PREVENTIVE HEALTH SERVICES BLOCK GRANT

 

01.       Statewide Health Promotion Programs                                        $3,061,182

 

02.       Dental Services/Fluoridation                                                               100,800

 

03.       Rape Crisis/Victims' Services

Program - Council for Women                                                           190,134

 

04.       Rape Prevention and Education

Program - Division of Public

Health and Council for Women                                                       1,139,869

 

05.       Transfer from Social Services

Block Grant -

HIV/AIDS Prevention Activities                                                         395,789

 

06.       Transfer from Social Services

Block Grant -

Emergency Medical Services                                                              213,128

 

07.       Transfer from Social Services

Block Grant -

HIV/AIDS education, counseling, and

testing                                                                                                      66,939

 

08.       Office of Minority Health                                                                   159,459

 

09.       Administrative Costs                                                                            108,546

 

TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT                   $5,435,846

 

SECTION 5.1.(b)  Decreases in Federal Fund Availability. - If the United States Congress reduces federal fund availability in the Social Services Block Grant below the amounts appropriated in this section, then the Department of Health and Human Services shall allocate these decreases giving priority first to those direct services mandated by State or federal law, then to those programs providing direct services that have demonstrated effectiveness in meeting the federally and State-mandated services goals established for the Social Services Block Grant.  The Department shall not include transfers from TANF for specified purposes in any calculations of reductions to the Social Services Block Grant.

If the United States Congress reduces the amount of TANF funds below the amounts appropriated in this section after the effective date of this act, then the Department shall allocate the decrease in funds after considering any underutilization of the budget and the effectiveness of the current level of services. Any TANF Block Grant fund changes shall be reported to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

Decreases in federal fund availability shall be allocated for the Maternal and Child Health and Preventive Health Services federal block grants by the Department of Health and Human Services after considering the effectiveness of the current level of services.

SECTION 5.1.(c)  Increases in Federal Fund Availability. - Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended by the Department of Health and Human Services, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.

SECTION 5.1.(d)  Changes to the budgeted allocations to the block grants appropriated in this act and new allocations from the block grants not specified in this act shall be submitted to the Joint Legislative Commission on Governmental Operations  for review prior to the change and shall be reported immediately to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(e)  The Department of Health and Human Services may allow no-cost contract extensions for up to six months for nongovernmental grant recipients under the TANF Block Grant.

SECTION 5.1.(f)  Limitations on Preventive Health Services Block Grant Funds. - Twenty-five percent (25%) of funds allocated for Rape Prevention and Rape Education shall be allocated as grants to nonprofit organizations to provide rape prevention and education programs targeted for middle, junior high, and high school students.

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 2001-2002 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.(g)  The Department of Health and Human Services, Division of Social Services, shall do the following:

(1)       Continue the current evaluation of the Work First Program to assess former recipients' earnings, barriers to advancement to economic self-sufficiency, utilization of community support services, and other longitudinal employment data. Assessment periods shall include six and 18 months following closure of the case.

(2)       Continue the current evaluation of the Work First Program to profile the State's child-only caseload to include indicators of economic and social well-being, academic and behavioral performance, demographic data, description of living arrangements including length of placement out of the home, social and other human services provided to families, and other information needed to assess the needs of the child-only Work First Family Assistance clients and families.

The Division of Social Services may use up to seven hundred fifty thousand dollars ($750,000) in TANF funds to complete the evaluation of Work First.

The Department of Health and Human Services shall make a report on its progress in complying with this subsection 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 no later than September 30, 2001, and shall make a final report no later than September 30, 2002.

SECTION 5.1.(h)  The sum of two million eight hundred eleven thousand six hundred eighty-seven dollars ($2,811,687) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2001-2002 fiscal year shall be used to implement this subsection. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A-50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.

SECTION 5.1.(i)  The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this act in the TANF Block Grant and transferred to the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for child caring agencies for the 2001-2002 fiscal year shall be allocated to the State Private Child Caring Agencies Fund.  These funds shall be combined with all other funds allocated to the State Private Child Caring Agencies Fund for the reimbursement of the State's portion of the cost of care for the placement of certain children by the county departments of social services who are not eligible for federal IV-E funds.  These funds shall not be used to match other federal funds.

SECTION 5.1.(j)  The sum of three hundred thousand dollars ($300,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant shall be used to develop and implement a Medical Child Care Pilot open to children throughout the State.

SECTION 5.1.(k)  The sum of nine hundred thousand dollars ($900,000) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for Boys and Girls Clubs shall be used to make grants for approved programs.  The Department of Health and Human Services, in accordance with federal regulations for the use of TANF Block Grant funds, shall administer a grant program to award funds to the Boys and Girls Clubs across the State in order to implement programs that improve the motivation, performance, and self-esteem of youths and to implement other initiatives that would be expected to reduce school dropout and teen pregnancy rates.  The Department shall encourage and facilitate collaboration between the Boys and Girls Clubs and Support Our Students, Communities in Schools, and similar programs to submit joint applications for the funds if appropriate.

SECTION 5.1.(l)  Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.

SECTION 5.1.(m)  The sum of two million seven hundred thousand dollars ($2,700,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the Work First Housing Initiative shall be used to provide direct housing support to Work First clients.  Direct housing support includes using funds for rental assistance, loans, moving expenses, and other financial assistance.  No more than ten percent (10%) of these funds may be used for administration.  These funds may be used for counseling or similar services only if it is demonstrated that those services are not otherwise available in the community.

SECTION 5.1.(n)  The sum of five hundred thousand dollars ($500,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2001-2002 fiscal year shall be used to support administration of TANF-funded programs.

SECTION 5.1.(o)  The sum of four million five hundred thousand dollars ($4,500,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2001-2002 fiscal year shall be used to provide regional residential substance abuse treatment and services for women with children.  The Department of Health and Human Services, the Division of Social Services, and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, in consultation with local departments of social services, area mental health programs, and other State and local agencies or organizations, shall coordinate this effort in order to facilitate the expansion of regionally based substance abuse services for women with children.  These services shall be culturally appropriate and designed for the unique needs of TANF women with children.

In order to expedite the expansion of these services, the Secretary of the Department of Health and Human Services may enter into contracts with service providers.

The Department of Health and Human Services, the Division of Social Services, and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall report on their progress in complying with this subsection no later than October 1, 2001, and March 1, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. These reports shall include all of the following:

(1)       The number and location of additional beds created.

(2)       The types of facilities established.

(3)       The delineation of roles and responsibilities at the State and local levels.

(4)       Demographics of the women served, the number of women served, and the cost per client.

(5)       Demographics of the children served, the number of children served, and the services provided.

(6)       Job placement services provided to women.

(7)       A plan for follow-up and evaluation of services provided with an emphasis on outcomes.

(8)       Barriers identified to the successful implementation of the expansion.

(9)       Identification of other resources needed to appropriately and efficiently provide services to Work First recipients.

(10)     Other information as requested.

SECTION 5.1.(p)  The sum of two million four hundred seventy-five thousand six hundred seven dollars ($2,475,607) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2001-2002 fiscal year shall be used to support the existing Support Our Students Program and to expand the Program statewide, focusing on low-income communities in unserved areas.  These funds shall not be used for administration of the program.

SECTION 5.1.(q)  The sum of one million eight hundred thousand dollars ($1,800,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2001-2002 fiscal year shall be used to provide domestic violence services to Work First recipients.  These funds shall be used to provide domestic violence counseling, support, and other direct services to clients.  These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts.  The Division of Social Services may use up to seventy-five thousand dollars ($75,000) in TANF funds to establish one administrative position within the Division of Social Services to implement this subsection.

Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2001. 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 ten thousand dollars ($10,000) 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, 2001, 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, 2001. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.

The Department of Health and Human Services shall report on the uses of these funds no later than March 1, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(r)  The sum of two million seven hundred thousand dollars ($2,700,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used to expand after-school programs and services for at-risk children. The Department shall develop and implement a grant program to award grants to community-based programs that demonstrate the ability to reach children at risk of teen pregnancy and school dropout. The Department shall award grants to community-based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to establish one position within the Division of Social Services to coordinate at-risk after-school programs and shall not be used for other State administration. The Department shall report no later than March 1, 2002, on its progress in complying with this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Subcommittee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(s)  The sum of seven million six hundred fifty-four thousand eight hundred forty-one dollars ($7,654,841) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2001-2002 fiscal year for Child Welfare Improvements shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and post-adoption services for eligible families.

SECTION 5.1.(t)  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 2001-2002 fiscal year and the sum of seven hundred thousand dollars ($700,000) appropriated in this section in the Substance Abuse Prevention and Treatment Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2001-2002 fiscal year shall be used to continue a Comprehensive Treatment Services Program in accordance with Section 21.60 of this act.

SECTION 5.1.(u)  The sum of two million dollars ($2,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for fiscal year 2001-2002 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.(v)  The sum of nine million one hundred forty-seven thousand six hundred thirty-one dollars ($9,147,631) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services for a Cash Assistance Reserve may only be used for cash assistance payment if the funds appropriated in this act for cash assistance payments are not sufficient to pay Work First cash assistance in the 2001-2002 fiscal year.  Prior to the use of these funds, the Office of State Budget and Management shall review all proposals for expenditure of these funds in order to ensure compliance with this subsection.

The sum of two million five hundred twenty-eight thousand nine hundred ninety-three dollars ($2,528,993) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services for a Cash Assistance Reserve shall be held in the Cash Assistance Reserve until the Department of Health and Human Services and the Office of State Budget and Management can certify that these funds are not needed to ensure the continuation of the Work First Family Assistance payments to recipients during the 2001-2002 fiscal year. These funds may be used only for the payment of Work First Family Assistance and the allocations listed in this subsection. If the Department of Health and Human Services and the Office of State Budget and Management certify that these funds are not needed to ensure the continuation of Work First Family Assistance payments, the Department may make the following transfers from the Cash Assistance Reserve:

(1)       Reduction of out-of-wedlock births.                                    $160,000

(2)       Work First Job Retention -

            Rural Center ($30,000)

            Work Central Career Center ($20,000)                                 $50,000

(3)       Teen Pregnancy Prevention                                                   $223,926

(4)       Work First Housing Initiative                                               $300,000

(5)       Domestic Violence Prevention and

            Awareness                                                                               $100,000

(6)       Intensive Family Preservation Program                               $200,000

(7)       Work First Boys and Girls Clubs                                          $100,000

(8)       Support Our Students                                                             $275,674

(9)       Residential Substance Abuse Services

            for Women with Children                                                      $500,000

(10)     Domestic Violence Services for

            Work First Families                                                               $200,000

(11)     After School Services for At-Risk Children                        $300,000

(12)     Individual Development Accounts                                          $20,000.

SECTION 5.1.(w)  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 for a Business Process Reengineering Project Reserve may only be used for the project if funds appropriated in this act for Business Process Reengineering are not sufficient to continue the project through the 2001-2002 fiscal year. Prior to the use of these funds, the Office of State Budget and Management shall review all proposals for expenditure of these funds in order to ensure compliance with this subsection.

SECTION 5.1.(x)  If funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to child care subsidies unless otherwise prohibited by federal requirements of the grant, in order to use the federal funds fully.

SECTION 5.1.(y)  The sum of nine hundred thousand dollars ($900,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2001-2002 fiscal year for Domestic Violence Prevention and Awareness shall be used for grants to support initiatives by local domestic violence programs to prevent domestic violence.  Prevention activities shall include efforts to reach under-served populations and shall be culturally sensitive and multilingual.  The Department shall award grants to community-based organizations that demonstrate the ability to collaborate and coordinate services with other local human services agencies and organizations in order to serve children and families where domestic violence has occurred or is occurring.  The Department shall report on the use of these funds no later than May 1, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(z)  The sum of three hundred ninety-five thousand seven hundred eighty-nine dollars ($395,789) appropriated in this section in the Social Services Block Grant and transferred to the Preventive Health Service Block Grant to the Department of Health and Human Services for the 2001-2002 fiscal year for HIV/AIDS Prevention Activities shall be used to create a position in the Office of the Secretary and to enhance activities for HIV/AIDS awareness and education.  The position shall be responsible for all planning, programming, and budgeting for compliance with this subsection.  These prevention activities shall be targeted to the general public and programs identified in this subsection and shall not be used to augment the current grant programs that target high-risk populations through the community-based organizations.

It is the intention of the General Assembly to focus current resources and activities to strengthen and enhance prevention and intervention programs directed at the reduction of HIV/AIDS. The Department shall coordinate efforts to enhance awareness, education, and outreach with the North Carolina AIDS Advisory Council, North Carolina Minority Health Advisory Council, representatives of faith communities, representatives of nonprofit agencies, and other State agencies.

The Department of Health and Human Services shall coordinate and ensure the implementation of developmentally appropriate education, awareness, and outreach campaigns to comply with this subsection in the following programs and services:

(1)       Division of Social Services programs and services:

a.         Domestic Violence Prevention and Awareness.

b.         Domestic Violence Services for Work First Families.

c.         After School Services for At Risk Children.

d.         Work First Boys/Girls Clubs.

(2)       Division of Mental Health, Developmental Disabilities, and Substance Abuse Services programs and services:

a.         Substance Abuse Services for Juveniles.

b.         Residential Substance Abuse Services for Women and Children.

(3)       Division of Public Health programs and services:

a.         Teen Pregnancy Prevention Activities.

b.         Out-of-Wedlock Births.

c.         School Health Program.

d.         High-Risk Maternity Clinic Services.

e.         Perinatal Education and Training.

f.          Public Information and Education.

g.         Technical Assistance to Local Health Departments.

(4)       Other divisions, services, and programs:

a.         Family Support Services.

b.         Family Resource Centers.

c.         Independent Living Services.

d.         Residential schools and facilities.

e.         Other programs, services, or contracts that provide education and awareness services to children and families.

Other State agencies, including the Department of Public Instruction, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Administration, shall ensure the incorporation of developmentally appropriate HIV/AIDS education, awareness, and outreach information into their programs.

The Department shall report on the implementation of this subsection on March 15, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(aa)  The sum of one hundred eighty thousand dollars ($180,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services for the 2001-2002 fiscal year shall be used for Individual Development Accounts (IDA) for TANF-eligible individuals.  The Social Services Commission shall adopt rules for the implementation of this subsection.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

NER BLOCK GRANT FUNDS

SECTION 5.2.(a)  Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2002, 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 - 2002 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; up to 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; 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)  Study. - The Department of Commerce shall study the development of a training program designed to provide a minimum level of knowledge and skills for Community Development Block Grant administrators.  In conducting the study, the Department shall consult the North Carolina League of Municipalities, the North Carolina Association of County Commissioners, the North Carolina Community Development Association, and the Institute of Government at the University of North Carolina at Chapel Hill.  The Department may use unencumbered and unspent State Technical Assistance funds from previous program years to conduct the study.  The Department shall report its findings to the House and Senate Appropriations Subcommittees on Natural and Economic Resources and the Fiscal Research Division by February 1, 2002.

 

PART VI.  general provisions

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

special funds, federal funds, DEPARTMENTAL RECEIPTs, and cash balanceS/AUTHORIZATION FOR EXPENDITURES

SECTION 6.1.(a)  There is appropriated out of the cash balances, federal receipts, and departmental receipts available to each department, sufficient amounts to carry on authorized activities included under each department's operations.  All these cash balances, federal receipts, and departmental receipts shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by statute, and shall be expended at the level of service authorized by the General Assembly.  If the receipts, other than gifts and grants that are unanticipated and are for a specific purpose only, collected in a fiscal year by an institution, department, or agency exceed the receipts certified for it in General Fund Codes or Highway Fund Codes, then the Director of the Budget shall decrease the amount he allots to that institution, department, or agency from appropriations from that Fund by the amount of the excess, unless the Director of the Budget finds that the appropriations from the Fund are necessary to maintain the function that generated the receipts at the level anticipated in the certified Budget Codes for that Fund.

Funds that become available from overrealized receipts in General Fund Codes and Highway Fund Codes may be used for new permanent employee positions or to raise the salary of existing employees only as follows:

(1)       As provided in G.S. 116-30.1, 116-30.2, 116-30.3, 116-30.4; or

(2)       If the Director of the Budget finds that the new permanent employee positions are necessary to maintain the function that generated the receipts at the level anticipated in the certified budget codes for that Fund. The Director of the Budget shall notify the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the chairmen of the appropriations committees of the Senate and the House of Representatives, and the Fiscal Research Division of the Legislative Services Office that he intends to make such a finding at least 10 days before he makes the finding. The notification shall set out the reason the positions are necessary to maintain the function.

The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter the General Fund Codes or Highway Fund Codes that did not result in a corresponding reduced allotment from appropriations from that Fund.

SECTION 6.1.(b)  There is appropriated from the Reserve for Reimbursements to Local Governments and Shared Tax Revenues for each fiscal year an amount equal to the amount of the distributions required by law to be made from that reserve for that fiscal year.

SECTION 6.1.(c)  The Director of the Budget shall develop necessary budget controls, regulations, and systems to ensure that these funds and other State funds subject to the Executive Budget Act are not spent in a manner that would cause a deficit in expenditures.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

insurance and fidelity bonds

SECTION 6.2.  All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Department of Insurance, and the cost of placement shall be paid by the affected department, institution, or agency with the approval of the Commissioner of Insurance.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

contingency and emergency fund allocations

SECTION 6.3.(a)  Funds in the amount of five million dollars ($5,000,000) for the 2001-2002 fiscal year and five million dollars ($5,000,000) for the 2002-2003 fiscal year are appropriated in this act to the Contingency and Emergency Fund. Of the funds:

(1)       The sum of three million eight hundred seventy-five thousand dollars ($3,875,000) for the 2001-2002 fiscal year and the sum of three million eight hundred seventy-five thousand dollars ($3,875,000) for the 2002-2003 fiscal year shall be used only to respond to an unanticipated disaster such as a fire, hurricane, or tornado;

(2)       The sum of nine hundred thousand dollars ($900,000) for the 2001-2002 fiscal year and the sum of nine hundred thousand dollars (900,000) for the 2002-2003 fiscal year shall be used only (i) for the purposes set out in subdivision (1) of this subsection, (ii) as required by a court, Industrial Commission, or administrative hearing officer's order or award, or (iii) to match unanticipated federal funds; and

(3)       The sum of two hundred twenty-five thousand dollars ($225,000) for the 2001-2002 fiscal year and the sum of two hundred twenty-five thousand dollars ($225,000) for the 2002-2003 fiscal year shall be used for the purposes set out in subdivisions (1) and (2) of this subsection or for other allocations from the Contingency and Emergency Fund.

SECTION 6.3.(b)  Funds appropriated to the Contingency and Emergency Fund shall not be used to lease office space unless the expenditure is for a purpose set out in subdivision (1) or (2) of subsection (a) of this section.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

authorized transfers from salary adjustment reserves

SECTION 6.4.  The Director of the Budget may transfer to General Fund budget codes from the General Fund Salary Adjustment Reserves appropriation and may transfer to Highway Fund budget codes from the Highway Fund Salary Adjustment Reserve appropriation, amounts required to support approved salary adjustments made necessary by difficulties in recruiting and holding qualified employees in State government.  The funds may be transferred only when salary reserve funds in individual operating budgets are not available. 

The Director of the Budget shall report to the Fiscal Research Division prior to approving salary adjustments and transferring funds pursuant to this section.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

expenditures of funds in reserves limited

SECTION 6.5.  All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

state money recipients/conflict of interest policy

SECTION 6.6.  Each private, nonprofit entity eligible to receive State funds, either by General Assembly appropriation, or by grant, loan, or other allocation from a State agency, before funds may be disbursed to the entity, shall file with the disbursing agency a notarized copy of that entity's policy addressing conflicts of interest that may arise involving the entity's management employees and the members of its board of directors or other governing body.  The policy shall address situations in which any of these individuals may directly or indirectly benefit, except as the entity's employees or members of the board or other governing body, from the entity's disbursing of State funds, and shall include actions to be taken by the entity or the individual, or both, to avoid conflicts of interest and the appearance of impropriety.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

disbursements to nonprofits

SECTION 6.7.  G.S. 143-26 reads as rewritten:

"§ 143-26.  Director to have discretion as to manner of paying annual appropriations.

(a)       Unless otherwise provided, Except as provided in subsection (b) of this section or as otherwise provided by law, it shall be discretionary with the Director of the Budget whether any annual appropriation shall be paid in monthly, quarterly or semiannual installments or in a single payment.

(b)       Except as otherwise provided by law, an annual appropriation of one hundred thousand dollars ($100,000) or less to or for the use of a nonprofit corporation shall be paid in a single annual payment. An annual appropriation of more than one hundred thousand dollars ($100,000) to or for the use of a nonprofit corporation shall be paid in quarterly or monthly installments, in the discretion of the Director of the Budget."

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

budgeting of pilot programs

SECTION 6.8.(a)  Any program designated by the General Assembly as experimental, model, or pilot shall be shown as a separate budget item and shall be considered as an expansion item until a succeeding General Assembly reapproves it.

Any new program funded in whole or in part through a special appropriations bill shall be designated as an experimental, model, or pilot program.

SECTION 6.8.(b)  The Governor shall submit to the General Assembly with his proposed budget a report of which items in the proposed budget are subject to the provisions of this section.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

APPROPRIATIONS EFFICIENCY review

SECTION 6.9.  The Appropriations Committees of the Senate and House of Representatives may convene at least once a month during the interim period between the 2001 General Assembly and the 2002 Regular Session of the 2001 General Assembly to study the structure, duties, and functions of the various agencies and programs of State government. The review by the Appropriations Committees shall focus on ways to ensure that State government functions efficiently and to generate cost savings to the citizens of the State. The Appropriations Committees shall apply zero-base budgeting principles in evaluating the fiscal functions and funding needs of State agencies. The Appropriations Committees shall consider the recommendations of the Governor's Efficiency Commission and shall evaluate the feasibility of consolidating, eliminating, transferring, or privatizing certain State programs, operations, or entities where there is duplication of services or functions or where the functions being performed are not cost-effective.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

LIMITATIONS ON AGENCY LEGISLATIVE LIAISON

SECTION 6.10.(a)  Article 9A of Chapter 120 of the General Statues is amended by adding the following new section to read:

"§ 120-47.12.  Limitations on agency legislative liaisons.

(a)       No principal State department may use State funds to contract with persons who are not employed by the State to lobby the General Assembly.

(b)       No more than two persons in each principal State department and constituent institution of The University of North Carolina may be registered to lobby the General Assembly or designated as legislative liaisons pursuant to this Article."

SECTION 6.10.(b)  G.S. 120-47.1 is amended by adding a new subdivision to read:

"(4a)    The term "legislative liaison personnel" means any State officer or employee whose principal duties in practice or as set forth in that person's job description involve lobbying the General Assembly."

SECTION 6.10.(c)  This section is effective when it becomes law.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

RESERVE TO IMPLEMENT THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA)

SECTION 6.11.(a)  Funds in the amount of fifteen million dollars ($15,000,000) are appropriated in this act to the Reserve to Implement HIPAA. This reserve shall be located in the Office of State Budget and Management.

SECTION 6.11.(b)  The federal Health Insurance Portability and Accountability Act (HIPAA) was enacted in 1996 and set many goals for the health care industry.  The act’s primary purpose is to protect health insurance coverage for workers and their families when workers change or lose jobs. This new protection requires major administrative changes for health care programs.  The most comprehensive changes include: (i) moving from paper-based transactions to electronic transactions, (ii) establishing national identifiers for providers, payers, and employers, and (iii) upgrading security and privacy of health care information.  Failure to implement HIPAA requirements may result in denied or delayed reimbursements and severe civil and criminal penalties.

SECTION 6.11.(c)  The Office of State Budget and Management, in consultation with the State Chief Information Officer and the Secretary of Health and Human Services, shall develop a strategic plan to implement the requirements outlined in HIPAA. Specifically, the plan shall:

(1)       Identify and document all requirements outlined in the federal HIPAA legislation as they relate to State agencies;

(2)       Include an assessment of the State’s existing administrative systems, policies, and information technology systems, as they relate to the requirements of HIPAA;

(3)       Include a timeline for implementing all necessary administrative, policy, and technology changes to ensure compliance; and

(4)       Provide a detailed cost and cash flow analysis for each State agency subject to compliance. The analysis shall include personnel requirements, information technology equipment needs, and other operating and start-up expenses needed to implement HIPAA requirements.

SECTION 6.11.(d)  The Office of State Budget and Management shall report on the strategic plan developed pursuant to this section to the Chairs of the Senate and House of Representatives Appropriations Committees, the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Information Technology, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division by October 1, 2001.

SECTION 6.11.(e)  Funds spent to implement this section shall not exceed one million five hundred thousand dollars ($1,500,000) until the Office of State Budget and Management reports to the Chairs of the Senate and House of Representatives Appropriations Committees, the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Information Technology, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division on actual and proposed expenditures and actual and projected monthly cash requirements for the 2001-2002 fiscal year and beyond. After making this report, the Office of State Budget and Management shall report quarterly on its progress in implementing this section to the Chairs of the Senate and House of Representatives Appropriations Committees, the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Information Technology, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

LIMITATIONS ON USE OF STATE AIRCRAFT

SECTION 6.12.  No airplane or helicopter operated or maintained with State funds may be used to transport any member of a board or commission to or from a meeting of the board or commission to which that member is appointed unless:

(1)       The member is an elected official or head of a principal State department who serves on the board or commission by virtue of his or her office;

(2)       The member is traveling with another member who is an elected official who serves on the board or commission by virtue of his or her office;

(3)       The member is traveling on an airplane or helicopter that is flying to a particular destination for official State business other than a meeting of a board or commission; or

(4)       The Director of the Office of State Budget and Management has approved the use of the State airplane or helicopter as an exceptional circumstance.

The Director of the Office of State Budget and Management shall report to the Chairs of the Appropriations Committees of the Senate and House of Representatives by December 31 each year on the use of State aircraft in the prior year pursuant to subdivision (4) of this section.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

PRIVATE LICENSE PLATES ON PUBLICLY OWNED MOTOR VEHICLES

SECTION 6.14.(a)  Chapter 20 of the General Statutes is amended by adding a new section to read:

"§ 20-39.1. Publicly owned vehicles to be marked; private license plates on publicly owned vehicles.

(a)       Except as otherwise provided in this section, the executive head of every department of State government and every county, institution, or agency of the State shall mark every motor vehicle owned by the State, county, institution, or agency with a statement that the vehicle belongs to the State, county, institution, or agency. The requirements of this subsection are complied with if:

(1)       The vehicle has imprinted on the license plate, above the license number, the words "State Owned" and the vehicle has affixed to the front the words "State Owned";

(2)       In the case of a county, the vehicle has painted or affixed on its side a circle not less than eight inches in diameter showing a replica of the seal of the county; or

(3)       In the case of vehicles assigned to members of the Council of State, the vehicle has imprinted on the license plate the license number assigned to the appropriate member of the Council of State pursuant to G.S. 20-79.5(a); a member of the Council of State shall not be assessed any registration fee if the member elects to have a State-owned motor vehicle assigned to the member designated by the official plate number.

(b)       A motor vehicle used by any State or county officer or official for transporting, apprehending, or arresting persons charged with violations of the laws of the United States or the laws of this State is not required to be marked as provided in subsection (a) of this section. The Commissioner may lawfully provide private license plates to local, State, or federal departments or agencies for use on publicly owned or leased vehicles used for those purposes. Private license plates issued under this subsection shall be issued on an annual basis and the records of issuance shall be maintained in accordance with the provisions of G.S. 20-56.

(c)       A motor vehicle used by a county for transporting day or residential facility clients of area mental health, developmental disabilities, and substance abuse authorities established under Article 4 of Chapter 122C of the General Statutes is not required to be marked as provided in subsection (a) of this section. The Commissioner may lawfully provide private license plates to counties for use on publicly owned or leased vehicles used for that purpose. Private license plates issued under this subsection shall be issued on an annual basis and the records of issuance shall be maintained in accordance with the provisions of G.S. 20-56.

(d)       For purposes of this section, the term "private license plate" refers to a license plate that would normally be issued to a private party and therefore lacks any markings indicating that it has been assigned to a publicly owned vehicle. "Confidential" license plates are a specialized form of private license plate for which a confidential registration has been authorized under subsection (e) of this section. "Fictitious" license plates are a specialized form of private license plate for which a fictitious registration has been issued under subsection (f) or (g) of this section.

(e)       Upon approval and request of the Director of the State Bureau of Investigation, the Commissioner shall issue confidential license plates to local, State, or federal law enforcement agencies and agents of the Internal Revenue Service in accordance with the provisions of this subsection. Applicants in these categories shall provide satisfactory evidence to the Director of the State Bureau of Investigation of the following:

(1)       The confidential license plate requested is to be used on a publicly owned or leased vehicle that is primarily used for transporting, apprehending, or arresting persons charged with violations of the laws of the United States or the State of North Carolina;

(2)       The use of a confidential license plate is necessary to protect the personal safety of an officer or for placement on a vehicle used primarily for surveillance or undercover operations; and

(3)       The application contains an original signature of the head of the requesting agency or department or, in the case of a federal agency, the signature of the senior ranking officer for that agency in this State.

Confidential license plates issued under this subsection shall be issued on an annual basis and the Division shall maintain a separate registration file for vehicles bearing confidential license plates. That file shall be confidential for the use of the Division and is not a public record within the meaning of Chapter 132 of the General Statutes. Upon the annual renewal of the registration of a vehicle for which a confidential status has been established under this section, the registration shall lose its confidential status unless the agency or department  supplies the Director of the State Bureau of Investigation with information demonstrating that an officer's personal safety remains at risk or that the vehicle is still primarily used for surveillance or undercover operations at the time of renewal.

(f)        The Commissioner may to the extent necessary provide law enforcement officers of the Division on special undercover assignments with motor vehicle operator's licenses and motor vehicle license plates under assumed names, using false or fictitious addresses. The Commissioner shall be responsible for the request for issuance and use of such licenses and license plates, and may direct the immediate return of any license or license plate issued pursuant to this subsection.

(g)       The Commissioner may, upon the request of the Director of the State Bureau of Investigation and to the extent necessary, lawfully provide local, State, and federal law enforcement officers on special undercover assignments with motor vehicle drivers licenses and motor vehicle license plates under assumed names, using false or fictitious addresses. Fictitious license plates shall only be used on publicly owned or leased vehicles. A request for fictitious licenses and license plates by a local, State or federal law enforcement agency or department shall be made in writing to the Director of the State Bureau of Investigation and shall contain an original signature of the head of the requesting agency or department or, in the case of a federal agency, the signature of the senior ranking officer for that agency in this State.

Prior to the issuance of any fictitious license or license plate, the Director of the State Bureau of Investigation shall make a specific written finding that the request is justified and necessary. The Director shall maintain a record of all such licenses, license plates, assumed names, false or fictitious addresses, and law enforcement officers using the licenses or license plates. That record shall be confidential and is not a public record within the meaning of Chapter 132 of the General Statutes. The Director shall request the immediate return of any license or registration that is no longer necessary.

Licenses and license plates provided under this subsection shall expire six months after initial issuance unless the Director of the State Bureau of Investigation has approved an extension in writing. The head of the local, State, or federal law enforcement agency shall be responsible for the use of the licenses and license plates and shall return them immediately to the Director for cancellation upon either (i) their expiration, (ii) request of the Director of the State Bureau of Investigation, or (iii) request of the Commissioner. Failure to return a license or license plate issued pursuant to this subsection shall be punished as a Class 2 misdemeanor. At no time shall the number of valid licenses issued under this subsection exceed two hundred nor shall the number of valid license plates issued under this subsection exceed one hundred twenty-five unless the Director determines that exceptional circumstances justify exceeding those amounts. However, fictitious licenses and license plates issued to special agents of the State Bureau of Investigation and alcohol law enforcement agents shall not be counted against the limitation on the total number of fictitious licenses and plates established by this subsection and shall be renewable annually.

(h)       No private, confidential, or fictitious license plates issued under this section shall be used on privately owned vehicles under any circumstances.

(i)        The Commissioner shall administer the issuance of private plates for State-owned vehicles under the provisions of this section to ensure strict compliance with those provisions. The Division shall report to the Joint Legislative Commission on Governmental Operations by January 1 and July 1 of each year on the total number of private plates issued to each agency, the total number of confidential plates issued to each agency, and the total number of fictitious licenses and plates issued by the Division."

SECTION 6.14.(b)  Effective October 1, 2003, G.S. 20-39.1(b), as enacted in subsection (a) of this section, reads as rewritten:

"(b)      A motor vehicle used by any State or county officer or official for transporting, apprehending, or arresting persons charged with violations of the laws of the United States or the laws of this State is not required to be marked as provided in subsection (a) of this section. The Commissioner may lawfully provide private license plates to local, State, local or federal law enforcement agencies for use on publicly owned or leased vehicles used for those purposes. Private license plates issued under this subsection shall be issued on an annual basis and the records of issuance shall be maintained in accordance with the provisions of G.S. 20-56."

SECTION 6.14.(c)  All information placed in a confidential file pursuant to the provisions of G.S. 20-56(b) prior to the effective date of this section may remain in that file through December 31, 2001, unless that confidential registration expires prior to that date. Effective January 1, 2002, all confidential license plates issued by the Division of Motor Vehicles shall be converted to private plates unless prior to that date the agency or department that requested the maintenance of a confidential file has supplied the Director of the State Bureau of Investigation with the information required under G.S. 20-39.1(e), as enacted by this subsection (a) of this section.

SECTION 6.14.(d)  G.S. 14-250 is repealed.

SECTION 6.14.(e)  G.S. 20-39(g) and G.S. 20-39(h) are repealed.

SECTION 6.14.(f)  The catchline of G.S. 20-39 reads as rewritten:

"§ 20-39.  Administering and enforcing laws; rules and regulations; agents, etc.; seal; fees; licenses and plates for undercover officers. fees."

SECTION 6.14.(g)  G.S. 20-56(b) is repealed.

SECTION 6.14.(h)  Subsection (b) of this section becomes effective October 1, 2003. Except as provided in subsection (c) of this section, the remainder of this section is effective when it becomes law.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

EXTEND THE COMMISSION TO ADDRESS SMART GROWTH, GROWTH MANAGEMENT, AND DEVELOPMENT ISSUES

SECTION 6.16.  Section 16.7(g) of S.L.1999-237 reads as rewritten:

"Section 16.7.(g) Report. - The Commission shall submit an interim report to the 2000 Regular Session of the 1999 General Assembly and shall submit a final report of its findings and recommendations by January 15, 2001,November 1, 2001, to the General Assembly, the Governor, and the citizens of the State. The report may include recommendations to (i) enact and implement a program of comprehensive planning, supportive infrastructure development, and growth management and (ii) address the issue of continued oversight of growth and development in the State, including whether a permanent commission should be established. The Commission shall terminate upon filing its final report."

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

Masters Level Internships in state agencies

SECTION 6.17.  The Governor's Public Management Fellowship Program (GPMFP) is reinstated.  The Office of State Personnel shall continue to provide central coordination of the Program as provided by Executive Order No. 169, April 13, 2000.  State agencies may resume paid internships for recent graduates of in-State Masters of Public Administration and Masters of Public Policy programs as provided by Executive Order No. 169, April 13, 2000, subject to the availability of agency funds.

 

Requested by:            Senators Plyler, Odom, Lee; Representative Easterling, Oldham, Redwine, Thompson

application of tort claims act to bus drivers

SECTION 6.18.  G.S. 143-300.1(d) reads as rewritten:

"(d)      Except as otherwise provided in this subsection, the The Attorney General may may, upon the request of an employee or former employee, defend any civil action brought against the driver, transportation safety assistant, or monitor of a public school bus or school transportation service vehicle or school bus maintenance mechanic when the driver or mechanic is employed and paid by the local school administrative unit, when the monitor is acting in accordance with G.S. 115C-245(d), when the transportation safety assistant is acting in accordance with G.S. 115C-245(e), or when the driver is an unpaid school bus driver trainee under the supervision of an authorized employee of the Department of Transportation, Division of Motor Vehicles, or an authorized employee of a county or city board of education or administrative unit. The Attorney General may afford this defense through the use of a member of his staff or, in his discretion, employ private counsel. The Attorney General is authorized to pay any judgment rendered in the civil action not to exceed the limit provided under the Tort Claims Act. The funds necessary to cover the first one hundred fifty thousand dollars ($150,000) of liability per claim shall be made available from funds appropriated to the State Board of Education.  The balance of any liability owed shall be paid in accordance with G.S. 143-299.4. The Attorney General may compromise and settle any claim covered by this section to the extent that he finds the same to be valid, up to the limit provided in the Tort Claims Act, provided that the authority granted in this subsection shall be limited to only those claims that would be within the jurisdiction of the Industrial Commission under the Tort Claims Act.

The Attorney General shall refuse to provide for the defense of a civil action or proceeding brought against an employee or former employee if the Attorney General determines that:

(1)       The act or omission was not within the scope and course of his employment as a State employee; or

(2)       The employee or former employee acted or failed to act because of actual fraud, corruption, or actual malice on his part; or

(3)       Defense of the action or proceeding by the State would create a conflict of interest between the State and the employee or former employee; or

(4)       Defense of the action or proceeding would not be in the best interests of the State."

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

Personal Services Contracts/Reporting requirements

SECTION 6.19.(a)  By January 1, 2002, and quarterly thereafter, each State department, agency, and institution shall make a detailed written report to the Office of State Budget and Management and the Office of State Personnel on its utilization of personal services contracts. The report by each State department, agency, and institution shall include the following:

(1)       The total number of personal services contractors in service during the reporting period.

(2)       The type, duration, status, and cost of each contract.

(3)       The number of contractors utilized per contract.

(4)       A description of the functions and projects requiring contractual services.

(5)       The number of contractors for each function or project.

(6)       Identification of the State employee responsible for oversight of the performance of each contract and the number of contractors reporting to each contract manager or supervisor.

SECTION 6.19.(b)  By March 15, 2002, and biannually thereafter, the Office of State Budget and Management and the Office of State Personnel shall compile and analyze the information required under subsection (a) of this section and shall submit to the Joint Legislative Commission on Governmental Operations a detailed report on the type, number, duration, cost and effectiveness of State personal services contracts throughout State government.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

INCLUDE CONTINUING RESOLUTION ITEMS

SECTION 6.20.(a)  All appropriations made in S.L. 2001-250, S.L. 2001-287, S.L. 2001-322, and S.L. 2001-395, are repealed and funds appropriated pursuant to those acts shall revert to the appropriate fund.  The Director of the Budget shall adjust allocations made pursuant to the Current Operations and Capital Improvements Act of 2001 to reflect allocations made pursuant to S.L. 2001-250, S.L. 2001-287, S.L. 2001-322, and S.L. 2001-395, so as to give effect to the Current Operations and Capital Improvements Act of 2001 from July 1, 2001.

SECTION 6.20.(b)  Section 5 of S.L. 2001-250, Section 5 of S.L. 2001-322, and Sections 2.1, 3, 4, 5, 6, 7, 8, 10, 15, and 16 of S.L. 2001-395 are repealed.

SECTION 6.20.(c)  The provisions of S.L. 2001-250, S.L. 2001-287, S.L. 2001-322, and S.L. 2001-395, S.L. 2001 remain in effect for the 2001-2002 fiscal year except to the extent that:

(1)       Those provisions are expressly repealed or amended in this act or

(2)       Those provisions conflict with the provisions of this act. To the extent of such a conflict, the provisions of this act shall prevail.

(3)       Those provisions expire or expired pursuant to the provisions of those acts.

 

PART VII.  DEPARTMENT OF ADMINISTRATION

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Walend, Easterling, Oldham, Redwine, Thompson

VETERANS' SCHOLARSHIP PROGRAM

SECTION 7.1.(a)  G.S. 165-20(3) reads as rewritten:

"§ 165-20.  Definitions.

As used in this Article the terms defined in this section shall have the following meaning:

(3)       "Child" means a person person:  (i) who is a domiciliary of North Carolina and is a resident of North Carolina when applying for a scholarship, (ii) who is a senior in high school or its equivalent and who will graduate at the end of the academic year or a person who has completed high school or its equivalent prior to receipt of a scholarship as may be awarded under this Article, equivalent, (iii) who has complied with the requirements of the Selective Service System, if applicable, and (iv) who further meets one of the following requirements:

a.         A person whose veteran parent was a legal resident of North Carolina at the time of said veteran's entrance into that period of service in the armed forces during which eligibility is established under G.S. 165-22.

b.         A veteran's child who was born in North Carolina and has lived in North Carolina continuously since birth. Provided, that the requirement in the preceding sentence as to birth in North Carolina may be waived by the Department of Administration if it is shown to the satisfaction of the Department that the child's mother was a native-born resident of North Carolina and was such resident at the time of her marriage to the veteran and was outside the State temporarily at the time of the child's birth, following which the child was returned to North Carolina within a reasonable period of time where said child has since lived continuously.

c.         A person meeting either of the requirements set forth in subdivision (3)a or b above, and who was legally adopted by the veteran prior to said person's reaching the age of 15 years."

SECTION 7.1.(b)  G.S. 165-21 reads as rewritten:

"§ 165-21.  Scholarship.

(a)       A scholarship granted pursuant to this Article shall consist of the following benefits in either a State or private educational institution:

(1)       With respect to State educational institutions, unless expressly limited elsewhere in this Article, a scholarship shall consist of:

a.         Tuition,

b.         A reasonable board allowance,

c.         A reasonable room allowance,

d.         Matriculation and other institutional fees required to be paid as a condition to remaining in said institution and pursuing the course of study selected, excluding charges or fees for books, supplies, tools and clothing.

(2)       With respect to private educational institutions, a scholarship shall consist of a monetary allowance as prescribed in G.S. 165-22.1(d).

(3)       Only one scholarship may be granted pursuant to this Article with respect to each child and it shall not extend for a longer period than four academic years, which years, however, need not be consecutive.

(4)       No educational assistance shall be afforded a child under this Article after the end of a 10-year period beginning on the date the scholarship is first awarded. Those persons who have been granted a scholarship under this Article prior to the effective date of this act shall be entitled to the remainder of their period of scholarship eligibility if used prior to August 1, 1999. Whenever a child is enrolled in an educational institution and the period of entitlement ends while enrolled in a term, quarter or semester, such period shall be extended to the end of such term, quarter or semester, but not beyond the entitlement limitation of four academic years.

(b)       If a child is awarded a scholarship under this Article and the child is a senior in high school or its equivalent, then the scholarship shall be awarded pending the graduation of the child."

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Gibson, Easterling, Oldham, Redwine, Thompson

MODIFICATIONS TO THE STATE EMPLOYEE INCENTIVE BONUS PROGRAM

SECTION 7.2.(a)  G.S. 143-340(1) reads as rewritten:

"(1)      To establish the State Employee Incentive Bonus Program pursuant to Article 36A of this Chapter, with the authority to adopt all rules necessary to implement the program. The Secretary shall serve ex officio on all program committees and shall designate an executive secretary to administer the program."

SECTION 7.2.(b)  G.S. 143-345.20 reads as rewritten:

"§ 143-345.20.  Definitions.

The following definitions apply in this Article:

(1)       Baseline reversion. - The two-year historical average of reversions by a State department, agency, or institution.

(2)       Employing unit. - Any of the following:

a.         The principal Council of State office or department enumerated in G.S. 143A-11 for which a State employee works.

b.         The principal State department enumerated in G.S. 143B-6 for which a State employee works.

c.         The constituent institution of The University of North Carolina or the General Administration of The University of North Carolina for which a State employee works.

d.         The local school administrative unit for which a State employee works.

e.         The board, commission, or agency and its staff for which a State employee works, if that agency is not organizationally housed in any of the other offices, departments, or institutions listed in this subdivision.

(2a)     Participating agency. - Any State department, agency, or institution, or any local school administrative unit that employs State employees eligible to participate in the State Employee Incentive Bonus Program. The term includes the North Carolina Community Colleges System, The University of North Carolina and its constituent institutions, and charter schools. The term does not include federal or local government agencies.

(2b)     SEIBP. - Acronym for the State Employee Incentive Bonus Program.

(3)       State employee. - Any of the following:

a.         A person who is a contributing member of the Teachers' and State Employees' Retirement System of North Carolina, the Consolidated Judicial Retirement System of North Carolina, or the Optional Program.

b.         A person who receives wages from the State as a part-time or temporary worker, but is not otherwise a contributing member of one of the retirement programs listed in sub-subdivision a. of this subdivision."

SECTION 7.2.(c)  G.S. 143-345.21 reads as rewritten:

"§ 143-345.21.  State employee incentive bonus.

(a)       A State employee or team of State employees may receive an incentive bonus or bonuses in reward for suggestions or innovations resulting in monetary savings to the State, increased revenues to the State, or improved quality of services delivered to the public.

(b)       In addition to any bonuses paid directly to individual State employees, a portion of the cost-savings associated with any savings realized from permanent efficiencies implemented pursuant to this Article may be contributed to a reserve fund for State employee performance bonuses. Funds for State employee incentive bonuses shall only come from savings including reversions above the baseline reversion of the employing State department, agency, or institution.

(b1)     The amount of savings generated by suggestions and innovations shall be determined after a 12-month period of implementation. No incentive bonus shall be paid prior to the expiration of 12 months, and payment may be delayed further as reasonably required to ensure that a complete cost implementation cycle is evaluated fully.

(c)       Savings generated by suggestions and innovations shall be determined at the end of the fiscal year in which the suggestion or innovation is implemented or the determination may be carried over for one full fiscal year after implementation before making an award if the actual savings cannot be verified before the end of the fiscal year. Any savings are to be calculated using the actual expenditures for a program, activity, or service compared to the budgeted amount for the same, if an amount has been budgeted for the program, activity, or service. The savings calculation shall include the amount of any reversions in excess of the baseline reversion. The savings or revenue increases realized from any suggestion or innovation implemented for less than one full fiscal year shall be annualized. Any savings realized through the State Employee Incentive Bonus Program shall be weighed against continued service to the public.public and the assurance that there is not a negative impact on State programs.

(d)       If a suggestion or innovation affects a program, activity, or service for which no separate budgeted amount has been made, the State Coordinator, in conjunction with the agency evaluator or agency fiscal officer, or both for that suggestion or innovation, shall determine the budgetary impact of the suggestion or innovation.

(e)       Federal and local government funds and corporate and foundation grant funds are excluded from the SEIBP.

(f)        The Department of Administration shall establish the SEIBP reserve fund in which all savings for all suggestions shall be deposited as earned. Each participating agency shall be responsible for transferring savings to the SEIBP reserve fund. The funds may be encumbered as needed to ensure payment to the General Fund, to the suggester, and for distribution as required by G.S. 143-345.22. The Department of Administration shall provide the SEIBP reserve fund summary at the close of each fiscal year to the Office of State Budget and Management and to the participating agencies. The Office of State Budget and Management shall have oversight responsibility for ensuring that the required reversions and transfers are made to the General Fund, and that all encumbered funds are accounted for and paid as required by law.

(g)       No distribution of suggester awards shall occur until reversion requirements to the General Fund are met and distributions as required by G.S. 143-345.22 are satisfied and verified by the Office of State Budget and Management. When all of the requirements of G.S. 143-345.22 are fulfilled, the Department of Administration shall transfer to the suggester's agency funds required to award the suggester. The suggester's agency shall make the suggestion award and ensure that all taxes and withholding requirements are met.

(h)       Implementation costs may be prorated over a maximum of three years for suggestions or innovations that are capital intensive, involve leading-edge technology, or involve unconventional processes that require longer than 12 months for implementation. The amount of the average annual savings minus the average annual implementation cost shall be used as the basis for the agency to recommend a suggester award. The State Review Committee shall consult the Office of State Budget and Management to make the final award determination in these cases.

(i)        There is established in the Department of Administration a nonreverting fund to be administered by the Office of State Personnel for the training and education of permanent State employees to address specific mission critical needs and objectives. Funds shall be credited from the SEIBP to the fund as provided by this Article."

SECTION 7.2.(d)  G.S. 143-345.22 reads as rewritten:

"§ 143-345.22.  Allocation of incentive bonus funds; nonmonetary recognition.

(a)       If a State employee's suggestion or innovation results in a monetary savings or increased revenue to the State, the funds saved or increased shall be distributed according to the following scale or subject to guidelines as set forth by the funding source:

(1)       Twenty percent (20%) of the annualized savings or increased revenues, up to a maximum of twenty thousand dollars ($20,000) for any one State employee, to constitute gainsharing. If a team of State employees is the suggester, the bonus provided in this subdivision shall be divided equally among the team members, except that no team member may shall receive in excess of twenty thousand dollars ($20,000), nor may shall the team receive an aggregate amount in excess of one hundred thousand dollars ($100,000). These funds shall not revert.

(2)       Thirty percent (30%) for all current employees in the work unit, as designated by the agency head, of the employing unit of the suggester.allocated as follows:

a.         Ten percent (10%) to the implementing agency for nonrecurring budget items to be used (i) by the implementing agency to provide equipment, supplies, training, and limited but appropriate recognition for the division, section, or group responsible for the implementation of the cost-saving measure and (ii) to meet other similar needs within the agency.

b.         Ten percent (10%) to the Department of Administration for augmenting funding for the management and administration of the SEIBP. These funds shall not revert.

c.         Ten percent (10%) to the State employee education and training fund administered by the Office of State Personnel under G.S. 143-342.21(i). These funds shall not revert.

(3)       The remainder to the General Fund for nonrecurring budget items.

(a1)     Of the pool of funds identified in subsection (a) of this section, only the General Fund appropriations shall be subject to reversion, except during declared budget emergencies. Under nonemergency budget conditions, SEIBP funds arising from savings at The University of North Carolina, the North Carolina Community Colleges System, the Highway Trust Fund, enterprise funds, and receipt-supported organizations shall be exempt from the General Fund reversion requirements.

(b)       The budget of a State agency shall not be reduced in the following fiscal year by an amount similar to the monetary savings or increased revenues realized by the State Employee Incentive Bonus Program. The agency budget shall be reduced in subsequent years only if structural or organizational changes are made that warrant the reductions, including the transfer of responsibility for an activity or service to another agency or the elimination of some function of State government.

(c)       If a suggestion or innovation results in improved quality of services to the public or to other State agencies, departments, and institutions, but not in monetary savings to the State, the suggester shall receive a nonmonetary award in the form of a certificate, leave with pay, or other similar recognition."

SECTION 7.2.(e)  G.S. 143-345.23 reads as rewritten:

"§ 143-345.23.  Suggestion and review process; role of agency coordinator and agency evaluator.

(a)       The process for a State employee or team of State employees to submit a cost-saving or revenue-increasing proposal shall begin by with the employee or team of employees submitting the suggestion or innovation to an agency coordinator designated by the State department, agency, or institution impacted by the suggestion or innovation.coordinator. The agency coordinator, in conjunction with an agency evaluator, shall review the suggestion or innovation for submission to the State Review Committee established in G.S. 143-345.14.G.S. 143-345.24.

(b)       An agency coordinator shall be appointed by the head of each participating agency to serve as liaison between the agency, the suggester, the agency evaluator, and the SEIBP office. The duties of the agency coordinator shall include:

(1)       Serving as an information source and maintaining sufficient forms necessary to submit suggestions.

(2)       Responsibility for presenting, Presenting, in conjunction with the agency evaluator, the plan of implementation for a suggestion or innovation recommendation for an award to the State Review Committee.

(3)       Working in conjunction with the agency evaluator designated by the Agency Coordinator for to process a particular suggestion or innovation.innovation within 180 days, except when there are extenuating circumstances.

An agency may have more than one coordinator if required to provide sufficient services to State employees.

(c)       An agency evaluator shall be designated by the management of the implementing agency to evaluate one or more suggestions. The duties of an agency evaluator shall include:

(1)       Reviewing Receiving from the agency coordinator and reviewing within 90 days, when possible, the feasibility and effectiveness of cost-saving or revenue-increasing measures suggested by State employees.

(2)       Being knowledgeable of the subject program, activity, or service.

(3)       Determining, in conjunction with the agency fiscal officer, the budgetary impact of a suggestion or innovation.

(4)       Judging impartially both the positive and negative effects of a suggestion or innovation on the current functions of the subject program, activity, or service.

The specific assignments of the agency evaluator shall be determined by the agency coordinator.

(d)       The State Coordinator executive secretary shall be responsible for general oversight and coordination of the State Employee Incentive Bonus Program. The State Coordinator coordinator shall be a State an employee working inof the Department of Administration. The State coordinator shall be responsible for day-to-day SEIBP program management and administration of the technical aspects of the program. The State coordinator shall be an ex officio voting member of the State Review Committee."

SECTION 7.2.(f)  G.S. 143-345.24 reads as rewritten:

"§ 143-345.24.  Incentive Bonus Review Committee.

(a)       The Incentive Bonus Review Committee, hereinafter "State Review Committee", shall consist of nine members, as follows:

(1)       The State Coordinator.

(2)       A representative of the Office of State Budget and Management.

(3)       A representative of the Office of State Personnel.

(4)       A representative of The University of North Carolina.

(5)       A representative of the Department of Justice.

(6)       A representative of the Department of Labor.

(7)       One State employee appointed by the Speaker of the House of Representatives.

(8)       One State employee appointed by the President Pro Tempore of the Senate.

(9)       One State employee appointed by the Governor upon the recommendation of the State Employees Association of North Carolina, Inc.

(b)       The duties of the State Review Committee shall include:

(1)       Responsibility for receiving Receiving from the various agency coordinators recommendations on suggestion and innovation implementation plans.suggestions and innovations.

(2)       Determining the impact of a suggestion or innovation on State government services by judging the monetary savings, increased revenues, or improved quality of services generated by a suggestion or innovation.

(3)       Ensuring that the State employee incentive bonus process does not result in a negative impact on services provided to taxpayers by State government.

(c)       All administrative, management, clerical, and other functions and services required by the State Review Committee shall be supplied by the Department of Administration. The Department of Administration and the State Review Committee shall report annually to the Joint Legislative Commission on Governmental Operations on the administration of the State Employee Incentive Bonus Program."

SECTION 7.2.(g)  G.S. 143-345.25 reads as rewritten:

"§ 143-345.25.  Effect Innovations deemed property of the State; effect of decisions regarding bonuses.

(a)       All suggestions or innovations submitted by State employees pursuant to this Article are the property of the State.State, and all related intellectual property rights shall be assigned to the State. By January 1, 2002, the Office of State Personnel shall establish a policy regarding intellectual property rights that arise from the SEIBP.

(b)       Decisions regarding the award of bonuses by the agency coordinator and the State Review Committee are final and are not subject to review under the contested case procedures of Chapter 150B of the General Statutes."

SECTION 7.2.(h) This section becomes effective July 1, 2001, and applies to State employee suggestions and innovations approved or awarded on or after that date.

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

study of motor fleet management

SECTION 7.3.  The Office of State Budget and Management shall study the operations of the State motor fleet management system and shall consider the feasibility of privatizing the function.  The Office of State Budget and Management shall report the results of this study to the 2002 Regular Session of the 2001 General Assembly.

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

Motor Pool operations and assignment of vehicles

SECTION 7.4.  G.S. 143-341(8)(i) reads as rewritten:

"§ 143-341.  Powers and duties of Department.

The Department of Administration has the following powers and duties:

(8)       General Services:

i.          To establish and operate a central motor pool and such subsidiary related facilities as the Secretary may deem necessary, and to that end:

4.         To maintain, store, repair, dispose of, and replace state-owned motor vehicles under the control of the Department. The Department shall ensure that state-owned vehicles are not normally replaced until they have been driven for 90,000 110,000 miles or more.

5.         Upon proper requisition, proper showing of need for use on State business only, and proper showing of proof that all persons who will be driving the motor vehicle have valid drivers' licenses, to assign economically suitable transportation, either on a temporary or permanent basis, to any State employee or agency. An agency assigned a motor vehicle may not allow a person to operate that motor vehicle unless that person displays to the agency and allows the agency to copy that person's valid driver's license. Notwithstanding G.S. 20-30(6), persons or agencies requesting assignment of motor vehicles may photostat or otherwise reproduce drivers' licenses for purposes of complying with this subpart.

As used in this subpart, "economically suitable transportation" means the most cost-effective standard vehicle in the State motor fleet, unless special towing provisions are required by the employee or agency. The Department may not assign any employee or agency a motor vehicle that is not economically suitable. The Department shall not approve requests for vehicle assignment or reassignment when the purpose of that assignment or reassignment is to provide any employee with a newer or lower mileage vehicle because of his or her rank, management authority, or length of service or because of any non-job-related reason. The Department shall not assign "special use" vehicles, such as four-wheel drive vehicles or law enforcement vehicles, to any agency or individual except upon written justification, verified by historical data, and accepted by the Secretary. The Department may provide law enforcement vehicles only to those agencies which have statutory pursuit authority."

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

TRANSFER BOARD OF SCIENCE AND TECHNOLOGY

SECTION 7.6.  The statutory authority, power, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, or other funds, including the functions of budgeting and purchasing, of the North Carolina Board of Science and Technology, as established in G.S. 143B-426.30, are transferred to the Department of Commerce.  Part 27 of Article 9 of Chapter 143B of the General Statutes is recodified as Part 18 of Article 10 of Chapter 143B of the General Statutes and the Revisor of Statutes shall substitute the term "Commerce" for the term "Administration" everywhere that term appears in Part 18 of Article 10 of Chapter 143B of the General Statues.

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson

Domestic Violence Commission Staffing

SECTION 7.7.  G.S. 143B-394.15 is amended by adding a new subsection to read:

"(l)       Staffing. - The Secretary of the Department of Administration shall be responsible for staffing the Commission. To that end, the Secretary shall, at a minimum, assign an employee to serve as a Deputy Director within the North Carolina Council for Women whose primary duties shall be to staff the Commission. The person assigned as Deputy Director shall have the education, experience, and any other qualifications necessary for the position."

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson

 Petroleum Overcharge Funds Allocation

SECTION 7.8.(a)  There is appropriated from funds and interest thereon received from the case of United States v. Exxon that remain in the Special Reserve for Oil Overcharge Funds to the Department of Health and Human Services the sum of one million three hundred thousand dollars ($1,300,000) for the 2001-2002 fiscal year to be allocated to the Weatherization Assistance Program.

SECTION 7.8.(b)  Any funds remaining in the Special Reserve for Oil Overcharge Funds after the allocation made pursuant to subsection (a) of this section may be expended only as authorized by the General Assembly. All interest or income accruing from all deposits or investments of cash balances shall be credited to the Special Reserve for Oil Overcharge Funds.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Wainwright, Easterling, Oldham, Redwine, Thompson

Historically Underutilized Businesses

SECTION 7.9.   The Secretary of the Department of Administration shall maintain the Office of Historically Underutilized Businesses (HUB) as established by Executive Order 150.  The HUB shall have the same duties, responsibilities, and functions as under Executive Order 150 until further action is taken by the General Assembly concerning the HUB.  Every governmental entity required by statute to use the services of the Department of Administration in the purchase of goods and services shall report its use of historically underutilized businesses to the HUB on a quarterly basis.  The HUB shall report annually to the Chairs of the Appropriation Subcommittee on General Government of the Senate and the House of Representatives by May 1 of each year.

 

PART VIII.  OFFICE OF ADMINISTRATIVE HEARINGS

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

OFFICE OF ADMINISTRATIVE HEARINGS RECLASSIFICATION OF POSITIONS

SECTION 8.1.  The Office of Administrative Hearings shall reclassify positions in the Rules Division, Civil Rights Division, Hearings Division, and Administration Division of the Office of Administrative Hearings in accordance with the findings and recommendations of the Office of State Personnel submitted to the General Assembly on January 30, 2001.

 

PART IX.  OFFICE OF THE STATE AUDITOR

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

electronic distribution of auditor's reports

SECTION 9.1.(a)  G.S. 147-64.6(c) reads as rewritten:

"(c)      The Auditor shall be responsible for the following acts and activities:

(12)     The Auditor shall provide in a written statement a report to the Governor and Attorney General, and other appropriate officials, of such facts as are in his possession which pertain to the apparent violation of penal statutes or apparent instances of malfeasance, misfeasance, or nonfeasance by an officer or employee.

(14)     The Auditor shall provide copies of each audit report to notify the General Assembly, the Governor, the Chief Executive Officer of each agency audited, and other persons as the Auditor deems appropriate. appropriate that an audit report has been published, its subject and title, and the locations, including State libraries, at which the report is available. The Auditor shall then distribute copies of the report only to those who request a report. The copies shall be in written or electronic form, as requested. He shall also file a copy of the audit report in the Auditor's office, which will be a permanent public record; Provided, nothing in this subsection shall be construed as authorizing or permitting the publication of information whose disclosure is otherwise prohibited by law.

…."

SECTION 9.1.(b)  G.S. 147-64.5(a) reads as rewritten:

"(a)      Joint Legislative Commission on Governmental Operations. - The Auditor shall furnish copies of any and all audits only when requested by the Joint Legislative Commission on Governmental Operations. The copies shall be in written or electronic form, as requested. Accordingly, the Auditor shall, upon request by the chairmen, appear before the Commission to present findings and answer questions concerning the results of these audits. The Commission is hereby authorized to use these audit findings in its inquiries concerning the operations of State agencies and is empowered to require agency heads to advise the Commission of actions taken or to be taken on any recommendations made in the report or explain the reasons for not taking action."

 

PART X.  OFFICE OF THE STATE CONTROLLER

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

Overpayments Audit

SECTION 10.1.(a)  During the 2001-2002 fiscal year, receipts generated by the collection of inadvertent overpayments by State agencies to vendors as a result of pricing errors, neglected rebates and discounts, miscalculated freight charges, unclaimed refunds, erroneously paid excise taxes, and related errors as required by G.S. 147-86.22(c) are to be deposited in the Special Reserve Account 24172.

SECTION 10.1.(b)  For the 2001-2002 fiscal year, two hundred thousand dollars ($200,000) of the funds transferred from the Special Reserve Account 24172 shall be used by the Office of the State Controller for data processing, debt collection, or e-commerce costs.

SECTION 10.1.(c)  All funds available in the Special Reserve Account 24172 on July 1, 2001, are transferred to the General Fund on that date.

SECTION 10.1.(d)  Any unobligated funds in the Special Reserve Account 24172 that are realized above the allowance in subsection (b) of this section are subject to appropriation by the General Assembly in the 2002 Regular Session of the 2001 General Assembly.

SECTION 10.1.(e)  The State Controller shall report quarterly to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the revenue deposited into the Special Reserve Account and the disbursement of that revenue.

 

PART XI.  DEPARTMENT OF CULTURAL RESOURCES

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

COMPLETION OF THE INFORMATION TECHNOLOGY EXPANSION PROJECT AND THE INFORMATION RESOURCE MANAGEMENT COMMISSION PROJECT CERTIFICATION

SECTION 11.1.  Of the funds appropriated to the Department of Cultural Resources, the sum of fifty thousand dollars ($50,000) shall be used to complete the planning for the Information Technology Expansion Project and the Information Resource Management Commission (IRMC) Project Certification.  The Department shall not expend any additional funds for information technology expansion prior to review of the IRMC Project Certification by the Joint Select Committee on Information Technology.  The results of the IRMC Project Certification shall be presented to the Joint Select Committee on Information Technology no later than March 1, 2002.

 

Requested by:            Senators Lee, Warren, Rand, Kerr, Harris, Plyler, Odom, Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson

Civil War Sites Tourism

SECTION 11.2.(a)  The Department of Cultural Resources and the Department of Commerce and other public and private organizations shall study the feasibility of creating tourism programs that highlight the State's Civil War history.

SECTION 11.2.(b)  The Departments shall consider the following information in conducting the study:

(1)       Existing Civil War tourism programs in the State, including ways that those Departments already collaborate in promoting Civil War tourism.

(2)       Successful Civil War tourism programs in other states.

(3)       The acquisition of federal funds and ways in which private funds can be raised to support the preservation, development, and promotion of Civil War tourism recommended by the study.

(4)       An analysis of the fiscal impact of each recommendation.

SECTION 11.2.(c)  The Departments shall submit a final report of their findings and recommendations, including draft legislation to implement the recommendations, to the Joint Appropriations Subcommittee on General Government and the Joint Appropriations Subcommittee on Natural and Economic Resources by April 15, 2002.

 

PART XII.  OFFICE OF THE GOVERNOR

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Baddour, Easterling, Oldham, Redwine, Thompson

ADVISORY COMMISSION ON MILITARY AFFAIRS

SECTION 12.1.  The General Statutes are amended by adding a new Chapter to read:

"Chapter 127C.

"Advisory Commission on Military Affairs.

"§ 127C-1.  Creation of the North Carolina Advisory Commission on Military Affairs.

There is created in the Office of the Governor the North Carolina Advisory Commission on Military Affairs to advise the Governor and the Secretary of Commerce on protecting the existing military infrastructure in this State and to promote new military missions and economic opportunities for the State and its citizens.

"§ 127C-2.  Membership.

(a)       The North Carolina Advisory Commission on Military Affairs shall consist of 21 voting members, who shall serve on the Executive Committee, and nine nonvoting, ex officio members who shall serve by reason of their positions.

(b)       The Executive Committee shall be appointed as follows:

(1)       Three members appointed by the Speaker of the House of Representatives, one of whom shall be a member of a recognized veterans' organization.

(2)       Three members appointed by the President Pro Tempore of the Senate, one of whom shall be a member of a recognized veterans' organization.

(3)       Fifteen members appointed by the Governor, consisting of:

a.         Three representatives from the Jacksonville community.

b.         Three representatives from the Havelock community.

c.         Three representatives from the Goldsboro community.

d.         Three representatives from the Fayetteville community.

e.         Three public members from across the State.

(c)       The following members shall serve ex officio:

(1)       Secretary of Crime Control and Public Safety, or a designee.

(2)       Secretary of Commerce, or a designee.

(3)       Commanding General 18th Airborne Corps, Fort Bragg.

(4)       Commanding General Marine Corps Base, Camp Lejeune.

(5)       Commanding General Marine Corps Air Station, Cherry Point.

(6)       Commander 4th FW, Seymour Johnson Air Force Base.

(7)       Commander 43rd Airlift Wing, Pope Air Force Base.

(8)       Commander of the U.S. Coast Guard Support Center, Elizabeth City.

(9)       Adjutant General of the North Carolina National Guard.

(d)       The Executive Committee appointed pursuant to subsection (b) of this section shall choose a Chairman and four Vice-Chairmen from amongst its membership.

"§ 127C-3.  Military Advisor.

The Military Advisor within the Office of the Governor shall serve as the administrative head of the Commission and be responsible for the operations and normal business activities of the Commission, with oversight by the Executive Committee."§ 127C-4.  Purposes.

The Commission shall have the following responsibilities and duties:

(1)       Advise the Governor and Secretary of Commerce on how to strengthen the State's relationship with the military to protect the installations of this State from the results of any future defense budget cuts or military downsizing by providing a sound infrastructure, affordable housing, and affordable education for military members and their families, working to be viewed by national military leaders as the most military-friendly State in the nation.

(2)       Develop a strategic plan to provide initiatives to support the long-term viability and prosperity of the military of this State that shall include, at least:

a.         A comprehensive Economic Impact Study of Military Activities in North Carolina to be conducted by the North Carolina State University Department of Economics and the East Carolina University Office of Regional Development.

b.         A Strengths/Weaknesses/Opportunities/Threats (SWOT) Analysis conducted by a professional strategic planning group on the current status of the military in North Carolina.

(3)       Study ways to improve educational opportunities for military personnel in North Carolina.

(4)       Assist in coordinating the State's interests in future activities of the Department of Defense.

(5)       Promote initiatives to improve the quality of life for military personnel in this State."

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

Eliminate State Planning Unit and rename budget office

SECTION 12.2.(a)  G.S. 143-10.3, 143-10.4, 143-10.5, and 143-10.6 are repealed.

SECTION 12.2.(b)  The phrase "Office of State Budget, Planning, and Management" is deleted and replaced by the phrase "Office of State Budget and Management" wherever it occurs in each of the following General Statutes:

G.S. 7A-101.                    Compensation.

G.S. 7A-113.                    Bookkeeping and accounting systems equipment.

G.S. 18B-1009.               In-stand sales.

G.S. 20-7.                         Issuance and renewal of drivers licenses.

G.S. 47-30.                      Plats and subdivisions; mapping requirements.

G.S. 58-6-25.                   Insurance regulatory charge.

G.S. 58-85A-1.                Creation of Fund; allocation to local fire districts and political subdivisions of the State.

G.S. 62A-25.                    Use of funds.

G.S. 96-4.                         Administration.

G.S. 96-32.                      Common follow-up information management system created.

G.S. 96-35.                      Reports on common follow-up system activities.

G.S. 97-80.                      Rules and regulations; subpoena of witnesses; examination of books and records; depositions; costs.

G.S. 105-130.5.               Adjustments to federal taxable income in determining State net income.

G.S. 105-134.6.               Adjustments to taxable income.

G.S. 105-262.                  Rules.

G.S. 108A-27.8.              Standard Program Counties - Duties of Department.

G.S. 115C-457.1.            Creation of Fund; administration.

G.S. 115C-457.2.            Remittance of moneys to the Fund.

G.S. 115C-457.3.            Transfer of funds to the State School Technology Fund.

G.S. 115C-546.1.            Creation of Fund; administration.

G.S. 115D-31.                 State financial support of institutions.

G.S. 116-220.                  Establishment and administration of self-insurance trust funds; rules and regulations; defense of actions against covered persons; application of § 143-300.6.

G.S. 120-30.45.               Fiscal note on legislation.

G.S. 120-30.49.               Compiling federal mandates; annual report.

G.S. 120-36.8.                 Certification of legislation required by federal law.

G.S. 120-131.1.               Requests from legislative employees for assistance in the preparation of fiscal notes.

G.S. 120-166.                  Additional criteria; nearness to another municipality.

G.S. 122A-16.                 Oversight by committees of General Assembly; annual reports.

G.S. 122C-112.               Powers and duties of the Secretary.

G.S. 122C-185.               Application of funds belonging to State facilities.

G.S. 131D-4.2.                Adult care homes; family care homes; annual cost reports; exemptions; enforcement.

G.S. 131E-13.                  Lease or sale of hospital facilities to or from for-profit or nonprofit corporations or other business entities by municipalities and hospital authorities.

G.S. 135-39.3.                 Oversight team.

G.S. 138-6.                      Travel allowances of State officers and employees.

G.S. 138-8.                      Moving expenses of State employees.

G.S. 143-1.                      Scope and definitions.

G.S. 143-2.                      Purposes.

G.S. 143-3.5.                   Coordination of statistics; fiscal analysis required for any bill proposed by a State agency that affects the budget.

G.S. 143-4.                      (For applicability see note) Advisory Budget Commission.

G.S. 143-6.                      Information from departments and agencies asking State aid.

G.S. 143-6.1.                   Report on use of State funds by non-State entities.

G.S. 143-10.1A.              Same - Continuation and expansion costs.

G.S. 143-10.2.                 Limit on number of State employees.

G.S. 143-10.3.                 Strategic planning process.

G.S. 143-10.4.                 Departmental operations plans.

G.S. 143-10.5.                 Development of performance measures for major programs.

G.S. 143-10.7.                 Review of department forms and reports.

G.S. 143-12.1.                 Vending facilities.

G.S. 143-15.4.                 General Fund operating budget size limited.

G.S. 143-19.                    Help for Director.

G.S. 143-20.1.                 Annual financial statements.

G.S. 143-27.                    Appropriations to educational, charitable and correctional institutions are in addition to receipts by them.

G.S. 143-28.1.                 Highway Fund appropriation.

G.S. 143-31.1.                 Study and review of plans and specifications for building, improvement, etc., projects.

G.S. 143-34.2.                 Information as to requests for nonstate funds for projects imposing obligation on State; statement of participation in contracts, etc., for nonstate funds; limiting clause required in certain contracts or grants.

G.S. 143-34.41.               Legislative intent; purpose.

G.S. 143-34.43.               Capital improvement needs criteria.

G.S. 143-34.44.               Agency capital improvement needs estimates.

G.S. 143-138.                  North Carolina State Building Code.

G.S. 143-215.94P.          Groundwater Protection Loan Fund.

G.S. 143-299.4.               Payment of State excess liability.

G.S. 143-345.24.            Incentive Bonus Review Committee.

G.S. 143B-133.1.            Powers of Commission.

G.S. 143B-336.1.            Special Zoo Fund.

G.S. 143B-372.3.            Staff.

G.S. 143B-426.39.          Powers and duties of the State Controller.

G.S. 146-30.                    Application of net proceeds.

G.S. 147-33.78.               Information Resource Management Commission.

G.S. 147-33.87.               Financial reporting and accountability for information technology investments and expenditures.

G.S. 147-86.22.               Statewide accounts receivable program.

G.S. 150B-21.                 Agency must designate rule-making coordinator; duties of coordinator.

G.S. 150B-21.4.              Fiscal notes on rules.

G.S. 150B-21.9.              Standards and timetable for review by Commission.

G.S. 150B-21.28.            Role of the Office of State Budget and Management.

G.S. 153A-230.1.            Definitions.

G.S. 153A-230.2.            Creation of Satellite Jail/Work Release Unit Fund.

G.S. 153A-230.5.            Satellite jails/work release units built with non-State funds.

G.S. 159I-25.                   Disbursement.

G.S. 159I-28.                   Rules.

G.S. 159I-29.                   Annual reports to Joint Legislative Commission on Governmental Operations.

G.S. 160A-486.               Estimates of population.

G.S. 163-132.5.               Cooperation of State and local agencies.

SECTION 12.2.(c)  G.S. 147-33.85(b) reads as rewritten:

"(b)      The Office shall coordinate with the Office of State Budget, Planning, and Management Office of State Budget and Management to integrate agency strategic and business planning, technology planning and budgeting, and project expenditure processes into the Office's information technology portfolio-based management. The Office shall provide recommendations for agency annual budget requests for information technology investments, projects, and initiatives to the Office of State Budget, Planning, and Management.Office of State Budget and Management."

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson

TRansfer the Center for Geographic Information Analysis/Geodetic Survey and the Statewide Floodplain Mapping unit

SECTION 12.3.(a)  The Center for Geographic Information Analysis/Geodetic Survey is transferred from the Office of State Budget and Management to the Department of Environment and Natural Resources, Division of Land Resources.  This transfer has all of the elements of a Type I transfer as defined in G.S. 143A-6.

SECTION 12.3.(b)  The Statewide Floodplain Mapping Unit is transferred from the Office of State Budget and Management to the Department of Crime Control and Public Safety, Division of Emergency Management.  This transfer has all of the elements of a Type I transfer as defined in G.S. 143A-6.

 

PART XIII.  OFFICE OF STATE PERSONNEL

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

Abolish Office of State PERSONNEL Prepare Program

SECTION 13.1.  The General Assembly encourages the Department of State Treasurer to include the model of the PREPARE program in its current delivery of retirement services.  The PREPARE program in the Office of State Personnel is abolished.

 

PART XIV.  GENERAL GOVERNMENT

 

Requested by:            Senators Warren, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Easterling, Oldham, Redwine, Thompson

Use of Internet for Agency Publications

SECTION 14.1.(a)  Each of the State agencies listed in subsection (b) of this section shall review its printing and publication requirements and schedules and develop a plan to reduce the cost of printing, publishing, and distributing agency information and materials, including documents, reports, and other publications by using computer technology and the Internet, in particular, to distribute information and materials to the public.  In developing the plan, each State agency shall review the statutory and regulatory requirements of the agency with regard to publishing and distributing information to the public and make recommendations on any statutory revisions needed to publish and distribute agency information over the Internet or by other computer-related means.  Each agency shall submit a written report to the Fiscal Research Division of the General Assembly by April 1, 2002, outlining the required information and the recurring adjustments in the agency budget.

SECTION 14.1.(b)  This section applies to the Office of the Governor, the Office of the Lieutenant Governor, the Department of Administration, the Office of the State Auditor, the Office of State Budget and Management, the Board of Elections, the Department of Insurance, the Office of the Secretary of State, the Office of the State Treasurer, the Office of Administrative Hearings, the Office of the State Controller, the Department of Cultural Resources, the General Assembly, the Office of State Personnel, the Department of Revenue, and the Rules Review Commission.

 

PART XIV-B.  STATE BOARD OF ELECTIONS

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Baddour, Nesbitt, Easterling, Oldham, Redwine, Thompson

Early voting Funds/grants

SECTION 14B.1.(a)  The State Board of Elections shall make grants as specified in subsection (b) of this section to certain counties that provided additional one-stop absentee voting sites in the 2000 General Election at locations other than the county board of elections office or the county courthouse. The funds for such grants shall come from funds previously appropriated, but not granted, to the State Board of Elections by S.L. 2000-136, for grants to counties to provide additional one-stop absentee voting sites. Under no circumstances shall any new grants by the State Board, under this act, be funded by any new appropriations. No other grants from funds previously appropriated, but not granted, to the State Board of Elections by S.L. 2000-136, for grants to counties to provide additional one-stop absentee voting shall be made other than those specified in subsection (b) of this section. Any funds from the fiscal year 2000-2001 appropriation remaining on June 30, 2001, shall not revert to the General Fund until the grant awards are made.

SECTION 14B.1.(b)  The State Board of Elections shall make grants to the following county boards of elections in the amounts specified:

(1)       Buncombe in the amount of fifteen thousand dollars ($15,000).

(2)       Chatham in the amount of five thousand dollars ($5,000).

(3)       Durham in the amount of ten thousand dollars ($10,000).

(4)       Edgecombe in the amount of five thousand dollars ($5,000).

(5)       Lenoir in the amount of ten thousand dollars ($10,000).

(6)       Orange in the amount of five thousand dollars ($5,000).

(7)       Wake in the amount of ten thousand dollars ($10,000).

 

PART XIV-D.  DEPARTMENT OF REVENUE

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson

Project Collect Tax

SECTION 14D.1.  Funds appropriated to the Department of Revenue for Project Collect Tax shall be transferred to a separate Fund Code in the Department's budget.

 

Requested by:            Senators Plyler, Odom, Lee; Representatives Easterling, Oldham, Redwine, Thompson

Request for Proposal for Performance-based contract for overdue tax collections

SECTION 14D.2.  The Department of Revenue shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by October 1, 2001, and monthly thereafter regarding its progress in developing a request for proposal for a performance-based contract to collect overdue tax debts as defined in G.S. 105-243.1.  The report shall include a list of any funds expended in developing the request for proposal and the purposes for which the funds were spent.

The Department of Revenue shall consult with the Joint Legislative Commission on Governmental Operations prior to issuing the request for proposal for performance-based contracts.

 

Requested by:            Senators Hoyle, Kerr, Plyler, Odom, Lee; Representatives Allen, Buchanan, Luebke, Wainwright, Easterling, Oldham, Redwine

Sales Tax RATE Administrative Costs

SECTION 14D.3  The Department of Revenue may used up to two hundred thirty thousand one hundred sixty dollars ($230,160) in lapsed salary funds for the 2001-2002 fiscal year to hire temporary personnel to implement the change in the State sales tax rate effective October 16, 2001, as enacted by this act.  In addition, the Department of Revenue may draw up to two hundred thirty thousand dollars ($230,000) from collections under Article 5 of Chapter 105 of the General Statutes for the 2001-2002 fiscal year to pay for printing, mailing, and other one-time costs necessary to implement the changes in the State sales tax effective October 16, 2001, as enacted by this act.

 

PART XIV-E.  DEPARTMENT OF INSURANCE

 

Requested by:            Senators Warren, Rand, Kerr, Harris, Plyler, Odom, Lee; Representatives Jeffus, Sherrill, Dedmon, Wainwright, Easterling, Oldham, Redwine, Thompson

Authorization of reimbursement from the INSURANCE REGULATORY FUND

SECTION 14E.1.(a)  G.S. 58-6-25(d) is amended by adding the following new subdivisions to read:

"(4)      Money appropriated for the office of Managed Care Patient Assistance Program established under G.S. 143-730 to pay the actual costs of administering the program.

(5)       Money appropriated to the Department of Insurance for the implementation and administration of independent external review procedures required by Part 4 of Article 50 of this Chapter."

SECTION 14E.1.(b)  This section becomes effective only if Senate Bill 199, 2001 General Assembly, becomes law.

 

PART XIV-F.  SECRETARY OF STATE

 

Requested by:            Senators Warren, Harris, Rand, Kerr, Representatives Jeffus, Sherrill, Dedmon, Wainwright

PRINTING AND DISTRIBUTION OF NORTH CAROLINA MANUAL

SECTION 14F.1.  G.S. 147-54 reads as rewritten:

"§ 147-54.  Printing, distribution and sale of the North Carolina Manual.

The Secretary of State shall have printed biennially for distribution and sale, five thousand (5,000) two thousand three hundred fifty (2,350) copies of the North Carolina Manual, and shall make distribution to the State agencies, individuals, institutions and others as herein set forth.

NORTH CAROLINA STATE GOVERNMENT:

Members of the GeneralAssembly.................................................................................... 2 ea.1 ea.

Officers of the General Assembly.................................................................................... 1 ea.

Offices of the Clerk of each House of

    the General Assembly.................................................................................................... 1 ea.

Legislative Services Officer.............................................................................................. 1

Legislative Library.............................................................................................................. 6

Members of the Council of State...................................................................................... 2 ea.

Appointed Secretaries of Executive Departments........................................................... 2 ea.

Personnel of the Department of the Secretary of State.................................................. 1 ea.

State Board of Elections.................................................................................................... 2

Divisions of Archives and History, Director.................................................................... 1

    Search Room................................................................................................................... 3

    Publications Section....................................................................................................... 2

State Library...................................................................................................................... 10

Libraries within State Agencies......................................................................................... 1 ea.

Justices of the North Carolina Supreme Court................................................................ 1 ea.

Judges of the North Carolina Court of Appeals............................................................... 1 ea.

Judges of the North Carolina Superior Court................................................................... 1 ea.

Supreme Court Library..................................................................................................... 12

Court of Appeals Library.................................................................................................... 2

Clerk of the Supreme Court............................................................................................... 1

Clerk of the Court of Appeals............................................................................................ 1

Reporter of the Supreme Court and Court of Appeals.................................................... 1

Administrative Office of the Court................................................................................... 5

NORTH CAROLINA EDUCATIONAL INSTITUTIONS:

University of North Carolina System

General Administration Offices...................................................................................... 12

Chancellors of the Constituent Institutions...................................................................... 1 ea.

University of North Carolina - Chapel Hill Library...................................................... 15

North Carolina State University Library........................................................................... 5

East Carolina University Library....................................................................................... 5

North Carolina Central University Library....................................................................... 5

Appalachian State University Library................................................................................ 4

University of North Carolina - Charlotte Library........................................................... 4

University of North Carolina - Greensboro Library....................................................... 4

Western Carolina University Library................................................................................ 4

Other Constituent Institutions Libraries........................................................................... 3 ea.

North Carolina School of the Arts.................................................................................... 2

Institute of Government..................................................................................................... 2

Community Colleges and Technical Institutes................................................................. 2 ea.

Private Colleges and Universities

Duke University Library..................................................................................................... 6

Wake Forest University...................................................................................................... 6

Campbell University Library.............................................................................................. 5

Davidson College Library.................................................................................................. 4

All other Libraries of Senior and Junior Colleges........................................................... 2 ea.

Public and Private Schools containing grades 8-12......................................................... 1 ea.

COUNTY GOVERNMENT:

Clerks of Court................................................................................................................... 1 ea.

Registers of Deeds............................................................................................................. 1 ea.

Public Libraries of North Carolina................................................................................... 1 ea.

FEDERAL GOVERNMENT:

President of the United States........................................................................................... 1

North Carolina Members of the Presidential Cabinet..................................................... 1 ea.

North Carolina Members of the United States Congress................................................ 2 ea.

Library of Congress............................................................................................................ 3

Resident Judges of the Federal Judiciary

    and United States Attorneys in North Carolina............................................................ 1 ea.

Secretaries of State of the United States

    and Territories................................................................................................................. 1 ea.

After making the above distribution, the remainder shall be sold at the cost of publication plus tax and postage and the proceeds from such sales deposited with the State Treasurer for use by the Publications Division of the Secretary of State's Office to defray the expense of publishing the North Carolina Manual. Libraries and educational institutions not covered in the above distribution shall be entitled to a twenty percent (20%) discount on the cost of any purchase(s)."

 

PART XV.  INFORMATION TECHNOLOGY

 

Requested by:            Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson

STATE AGENCIES TO REPORT ON INTELLECTUAL PROPERTY/study state intellectual property assets and technology transfers

SECTION 15.1.(a)  Prior to (i) the transfer of any patentable intellectual property or (ii) the release of any State grants or loans to non-State entities for purposes related to the development of patentable intellectual property, the transferring State agency, institution, or other entity of the State shall prepare and submit to the Governor, the Joint Legislative Commission on Governmental Operations, and the Chairs of the House of Representatives Science and Technology Committee and the Senate Information Technology Committee a written evaluation of the following matters:

(1)       If the proposed or pending transaction involves the transfer of patentable intellectual property developed by State employees within the scope of their employment:

a.         The nature of the State’s interest in the patentable intellectual property.

b.         The potential value of the State’s interest in the patentable intellectual property.

c.         How to best protect the State’s interest in the patentable intellectual property, as appropriate.

(2)       If the proposed or pending transaction involves the release of State grants or loans to a non-State entity for purposes related to the development of patentable intellectual property, the measures employed by the non-State entity to assure that the State funds do not inappropriately inure to the benefit of individuals serving in an official capacity for the State, a State agency, or the non-State entity that receives the funds.

SECTION 15.1.(b)  The provisions of subsection (a) of this section do not apply to The University of North Carolina and its constituent institutions, or to the North Carolina Community Colleges System, or to employees of these respective institutions who are subject to the intellectual property and inventor policies of the institutions employing them.

SECTION 15.1.(c)  The Board of Science and Technology shall study the transfer and use of intellectual property developed with State resources, including State funds, State personnel, or facilities.  The Board shall recommend to the Governor and the General Assembly legislation or other mechanisms to promote and regulate the transfer and use of intellectual property assets developed with State resources.  In conducting the study required by this section, the Board of Science and Technology shall consider the following:

(1)       Economic benefits, including accelerated State revenue growth, that result from the commercialization of intellectual property assets developed with State resources.

(2)       Potential methods, benefits, and detriments of recouping costs incurred by the State in the development of intellectual property assets that are subsequently commercialized.

(3)       Potential methods, benefits, and detriments of sharing between the public and private sectors the profits or losses resulting from the commercialization of intellectual property assets developed with State resources.

(4)       Existing and potential mechanisms for assuring that intellectual property assets developed with State resources do not inappropriately inure to the benefit of individuals serving in an official capacity for the State, a State agency, or an entity receiving or using State resources.

(5)       Current and potential interplay between State and federal law governing the use and transfer of intellectual property assets developed with State resources.

(6)       The experience of other states in addressing the transfer and use of intellectual property assets developed using State resources.

(7)       Any other factors that the Board considers appropriate.

SECTION 15.1.(d)  In formulating the recommendations enumerated in subsection (c) of this section, the Board of Science and Technology shall solicit input from affected parties, including State agencies, public and private universities, businesses with experience in the development, financing, and valuation of intellectual property assets, and organizations representing information technology and biotechnology businesses.

SECTION 15.1.(e)  The Board of Science and Technology shall report the recommendations required by subsection (c) of this section to the Governor and to the 2002 Regular Session of the 2001 General Assembly.

 

Requested by:            Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson

SECURITY STANDARDS FOR STATE INFORMATION TECHNOLOGY

SECTION 15.2.(a)  G.S. 147-33.81 reads as rewritten:

"§ 147-33.81.  Definitions.

As used in this Article:

(1)       "Distributed information technology assets" means hardware, software, and communications equipment not classified as traditional mainframe-based items, including personal computers, local area networks (LANs), servers, mobile computers, peripheral equipment, and other related hardware and software items.

(2)       "Information technology" means electronic data processing goods and services and services, telecommunications goods and services, security goods and services, microprocessors, software, information processing, office systems, any services related to the foregoing, and consulting or other services for design or redesign of information technology supporting business processes.

(3)       "Information technology enterprise management" means a method for managing distributed information technology assets from acquisition through retirement so that total ownership costs (purchase, operation, maintenance, disposal, etc.) are minimized while maximum benefits are realized.

(4)       "Information technology portfolio management" means a business-based approach for analyzing and ranking potential technology investments and selecting those investments that are the most cost-effective in supporting the strategic business and program objectives of the agency.

(5)       "Office" means the Office of Information Technology Services as established in this Article.

(6)       "State agency" means any department, institution, commission, committee, board, division, bureau, office, officer, or official of the State. The term does not include any State entity excluded from coverage under this Article by G.S. 147-33.80, unless otherwise expressly provided."

SECTION 15.2.(b)  G.S. 147-33.82 reads as rewritten:

"§ 147-33.82.  Powers and duties of the State Chief Information Officer and the Office of Information Technology Services.

(a)       The Office of Information Technology Services shall:

(1)       Procure all information technology for State agencies, as provided in Part 4 of this Article.

(2)       Submit for approval of the Information Resources Management Commission all rates and fees for common, shared State government-wide technology services provided by the Office.

(3)       Submit for approval of the Information Resources Management Commission recommended State government-wide, enterprise-level policies for information technology.

(4)       Develop standards, procedures, and processes to implement policies approved by the Information Resources Management Commission.

(5)       Assure that State agencies implement and manage information technology portfolio-based management of State information technology resources, in accordance with the direction set by the State Chief Information Officer.

(6)       Assure that State agencies implement and manage information technology enterprise management efforts of State government, in accordance with the direction set by the State Chief Information Officer.

(7)       Provide recommendations to the Information Resources Management Commission for its biennial technology strategy and to develop State government-wide technology initiatives to be approved by the Information Resources Management Commission.

(8)       Develop a project management, quality assurance, and architectural review process that adheres to the Information Resources Management Commission's certification program and portfolio-based management initiative.

(9)       Establish and utilize the Information Technology Management Advisory Council to consist of representatives from other State agencies to advise the Office on information technology business management and technology matters.

(b)       Notwithstanding any other provision of law, local governmental entities may use the information technology programs, services, or contracts offered by the Office, including information technology procurement, in accordance with the statutes, policies, and rules of the Office. For purposes of this subsection, "local governmental entities" includes local school administrative units, as defined in G.S. 115C-5, and community colleges. Local governmental entities are not required to comply with otherwise applicable competitive bidding requirements when using contracts established by the Office. Any other State entities may also use the information technology programs, services, or contracts offered by the Office, including information technology procurement, in accordance with the statutes, policies, and rules of the Office.

(c)       The State Chief Information Officer shall establish an enterprise-wide set of standards for information technology security to maximize the functionality, security, and interoperability of the State's distributed information technology assets, including communications and encryption technologies. As part of this function, the State Chief Information Officer shall review periodically existing security standards and practices in place among the various State agencies to determine whether those standards and practices meet enterprise-wide security and encryption requirements. The State Chief Information Officer may assume the direct responsibility of providing for the information technology security of any State agency that fails to adhere to security standards adopted pursuant to this section. Any actions taken by the State Chief Information Officer under this subsection shall be reported to the Information Resources Management Commission at its next scheduled meeting.

(d)       Notwithstanding G.S. 143-48.3 or any other provision of law, and except as otherwise provided by this subsection, all information technology security purchased using State funds, or for use by a State agency or in a State facility, shall be subject to approval by the State Chief Information Officer in accordance with security standards adopted under this section.

(1)       If the legislative branch, the judicial branch, The University of North Carolina and its constituent institutions, local school administrative units as defined by G.S. 115C-5, or the North Carolina Community Colleges System develop their own security standards, taking into consideration the mission and functions of that entity, that are comparable to or exceed those set by the State Chief Information Officer under this section, then these entities may elect to be governed by their own respective security standards, and approval of the State Chief Information Officer shall not be required before the purchase of information technology security. The State Chief Information Officer shall consult with the legislative branch, the judicial branch, The University of North Carolina and its constituent institutions, local school administrative units, and the North Carolina Community Colleges System in reviewing the security standards adopted by those entities.

(2)       If the State Chief Information Officer certifies that a State agency has developed security standards that meet or exceed those set under this section, then the agency may elect to be governed by its own security standards, and approval of the State Chief Information Officer shall not be required before the purchase of information technology security. This certification by the State Chief Information Officer is subject to annual renewal and may be revoked by the State Chief Information Officer at any time that a State agency's standards no longer exceed those set under this section.

(e)       The State Chief Information Officer shall submit the enterprise-wide set of standards for the State's information technology security to the Information Resources Management Commission for approval. The Information Resources Management Commission shall report approval of the standards to the Joint Legislative Commission on Governmental Operations prior to implementation of the standards. The State Chief Information Officer shall review and revise the standards at least annually, and the revisions shall be subject to approval by the Information Resources Management Commission, with the Commission reporting to the Joint Legislative Commission on Governmental Operations on the revisions.

(f)        The head of each State agency shall cooperate with the State Chief Information Officer in the discharge of his or her duties by:

(1)       Providing the full details of the agency's information technology and operational requirements.

(2)       Providing comprehensive information concerning the information technology security employed to protect the agency's information technology.

(3)       Forecasting the parameters of the agency's projected future information technology security needs and capabilities.

(4)       Designating an agency liaison in the information technology area to coordinate with the State Chief Information Officer.

The information provided by State agencies to the State Chief Information Officer under this subsection is protected from public disclosure pursuant to G.S. 132-6.1(c)."

SECTION 15.2.(c)  G.S. 147-64.6(c) is amended by adding a new subdivision to read:

"(18)   The Auditor shall, after consultation and in coordination with the State Chief Information Officer, assess, confirm, and report on the security practices of information technology systems. If an agency has adopted standards pursuant to G.S. 147-33.82(d)(1) or (2), the audit shall be in accordance with those standards. The Auditor's assessment of information security practices shall include an assessment of network vulnerability. The Auditor may conduct network penetration or any similar procedure as the Auditor may deem necessary. The Auditor may investigate reported information technology security breaches, cyber attacks, and cyber fraud in State government. The Auditor shall issue public reports on the general results of the reviews undertaken pursuant to this subdivision but may provide agencies with detailed reports of the security issues identified pursuant to this subdivision which shall not be disclosed as provided in G.S. 132-6.1(c). For the purposes of this subdivision only, the Auditor is exempt from the provisions of Article 3 of Chapter 143 of the General Statutes in retaining contractors."

SECTION 15.2.(d)  This section is effective when it becomes law.

 

Requested by:            Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson

Executive  budget act information technology provisions

SECTION 15.3.(a)  G.S. 143-6 is amended by adding a new subsection to read:

"(b2)    Any department, bureau, division, officer, board, commission, institution, or other State agency or undertaking desiring to request financial aid from the State for the purpose of acquiring or maintaining information technology as defined by G.S. 147-33.81(2) shall, before making the request for State financial aid, submit to the State Chief Information Officer (CIO) a statement of its needs in terms of information technology and other related requirements and shall furnish the CIO with any additional information requested by the CIO. The CIO shall then review the statement of needs submitted by the requesting department, bureau, division, officer, board, commission, institution, or other State agency or undertaking and perform additional analysis, as necessary, to comply with G.S. 147-33.82. All requests for financial aid for the purpose of acquiring or maintaining information technology shall be accompanied by a certification from the CIO deeming the request for financial aid to be consistent with Article 3D of Chapter 147 of the General Statutes. The CIO shall make recommendations to the Governor regarding the merits of requests for financial aid for the purpose of acquiring or maintaining information technology. This subsection shall not apply to requests for appropriations of less than one hundred thousand dollars ($100,000)."

SECTION 15.3.(b)  G.S. 143-7 reads as rewritten:

"§ 143-7.  Itemized statements and forms; exemptions from G.S. 147-64.6(c)(10).

(a)       The statements and estimates required under G.S. 143-6 shall be itemized in accordance with the budget classification adopted by the State Controller, and upon forms prescribed by the Director, and shall be approved and certified by the respective heads or responsible officer of each department, bureau, board, commission, institution, or agency submitting same. Official estimate blanks which shall be used in making these reports shall be furnished by the Director of the Budget.

(b)       The budget classification adopted by the State Controller and the forms prescribed by the Director shall include budget account codes relating specifically to information technology to allow reliable and meaningful analysis of information technology funding and expenditures throughout State government."

 

Requested by:            Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson

computer networking costs/TELECOMMUNICATIONS SERVICE BILLING for state agencies

SECTION 15.4.(a)  The Office of the State Controller, the Office of State Budget and Management, and the Office of Information Technology Services shall adopt a common definition for computer networking costs.  The definition shall include a specific and detailed list of the separate components that comprise overall networking costs. These agencies shall define a process to capture all such costs without redundancy.

SECTION 15.4.(b)  The Office of the State Controller, the Office of State Budget and Management, and the Office of Information Technology Services shall complete the definition by December 15, 2001.  By January 1, 2002, the agencies shall provide an interim report to the Joint Select Committee on Information Technology and to the Chairs of the House of Representatives Appropriations Subcommittee on Information Technology and the Senate Appropriations Committee on Information Technology on the process to capture networking costs, with a final report by May 1, 2002.

SECTION 15.4.(c)  The Office of State Personnel, in conjunction with the Office of Information Technology Services, shall devise a mechanism for identifying, by specific industry-relevant categories, State information technology positions across all relevant classifications in State government employment. The Office of State Personnel shall identify the results of market analyses comparing State information technology workers with private sector information technology workers. By January 1, 2002, the Office of State Personnel shall report on the results of the market analyses and its identification of State information technology personnel to the Joint Select Committee on Information Technology and to the Chairs of the House of Representatives Appropriations Subcommittee on Information Technology and the Senate Appropriations Committee on Information Technology.

SECTION 15.4.(d)  The Office of Information Technology Services shall accurately identify and present State agencies with detailed information on the cost of the ITS services for telecommunications data and video services.  The bill should clearly indicate the usage and the rate for the service.

SECTION 15.4.(e)  By January 15, 2002, the Office of State Budget and Management shall conduct a detailed and comprehensive study of the costs of all information technology networks operated by or for the Administrative Office of the Courts and report the results of the study to the Joint Select Committee on Information Technology.

 

Requested by:            Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson

STUDY STATE AGENCY USE OF CONTRACTORS FOR INFORMATION TECHNOLOGY/pilot project feasibility study

SECTION 15.5.(a)  The Office of State Personnel, the Office of Information Technology Services, the Office of State Budget and Management, and the Office of the State Controller shall study the issue of State agency's use of information technology contractors.  The study shall report on the number of contractors currently in use by State agencies, the duration of the working period for individual contractors, and the length of the contracts.  The purpose of the contracts should be clearly identified, and the unit and actual costs of the contracts should be clearly identified.

SECTION 15.5.(b)  The study report should recommend the most appropriate use of contractors (i.e., for discrete projects) and the most appropriate use of permanent employees (i.e., for ongoing activities such as LAN/WAN management).  In cases where the study indicates that permanent employees are best suited for a given task or activity, the Office of State Personnel is directed to identify effective mechanisms for recruiting and retaining employees.

SECTION 15.5.(c)   The study shall also compare the costs of outsourcing discrete functions and activities versus performing those activities with State government employees or contractors working for State agencies.

SECTION 15.5.(d)  By March 1, 2002, the study group shall report its findings and recommendations to the Joint Legislative Commission on Governmental Operations and to the Joint Select Committee on Information Technology.

SECTION 15.5.(e)  The Joint Select Committee on Information Technology shall conduct a feasibility study of a pilot program to allow budget flexibility for converting information technology contractors to employees in State agencies. The study shall include, but is not limited to, the following:

(1)       Assessment of the need for budget flexibility for information technology staffing in the various agencies.

(2)       Review of agency plans and projects pertaining to information technology operations and personal services contracts.

(3)       Identification of the State agencies best suited to participate in a pilot project allowing budget flexibility for information technology staffing.

(4)       Consideration of the advisability of limiting the number, type, and duration of new positions that would be created as the result of the budget flexibility pilot.

(5)       Consideration of  the training and career development initiatives that would be required to support and maximize the technical competencies needed in any new information technology positions created by the budget flexibility pilot.

The Joint Select Committee on Information Technology shall report its findings and recommendations to the General Assembly by the convening of the 2002 Regular Session of the 2001 General Assembly.

 

Requested by:            Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson

E-Procurement/Procurement card program

SECTION 15.6.(a)  Section 20.3 of S.L. 1998-212, Section 24 of S.L. 1999-237, and Section 21.3 of S.L. 2000-67 are repealed.

SECTION 15.6.(b)  G.S. 143-48.3 reads as rewritten:

"§ 143-48.3.  Electronic procurement.

(a)       The Department of Administration and the Office of the State Controller, in conjunction with the Office of Information Technology Services (ITS), the Department of State Auditor, the Department of State Treasurer, the University of North Carolina General Administration, the Community Colleges System Office, and the Department of Public Instruction shall collaborate to develop electronic or digital procurement standards.

(b)       The Department of Administration, in conjunction with the Office of the State Controller and the Office of Information Technology Services may, upon request, provide to all State agencies, universities, local school administrative units, and the community colleges, training in the use of the electronic procurement system.

(c)       The Office of Information Technology Services shall act as an Application Service Provider for an electronic procurement system and shall establish, manage, and operate this electronic procurement system and shall establish, manage, and operate, through State ownership or commercial leasing, in accordance with the requirements and operating standards developed by the Department of Administration, the Office of the State Controller, and ITS.

(d)       Nothing in this section modifies This section does not otherwise modify existing law relating to procurement between The University of North Carolina, UNC Health Care, local school administrative units, community colleges, and the Department of Administration.

(e)       The Board of Governors of The University of North Carolina may exempt North Carolina State University and the University of North Carolina at Chapel Hill from the electronic procurement system authorized by this Article until May 1, 2003, if the Board of Governors determines that each exemption is in the best interest of the respective constituent institutions. Each exemption shall be subject to the Board of Governors' annual review and reconsideration. Exempted constituent institutions shall continue working with the North Carolina E-Procurement Service as that system evolves and shall ensure that their proposed procurement systems are compatible with the North Carolina E-Procurement Service so that they may take advantage of this service to the greatest degree possible. Before an exempted institution expands any electronic procurement system, that institution shall consult with the Joint Legislative Commission on Governmental Operations and the Joint Select Committee on Information Technology. By May 1, 2003, the General Assembly shall evaluate the efficacy of the State's electronic procurement system and the inclusion and participation of entities in the system.

(f)        Any State entity, local school administrative unit, or community college operating a functional electronic procurement system established prior to September 1, 2001, may until May 1, 2003, continue to operate that system independently or may opt into the North Carolina E-Procurement Service. Each entity subject to this section shall notify the Information Resources Management Commission by January 1, 2002, and annually thereafter, of its intent to participate in the North Carolina E-Procurement Service."

SECTION 15.6.(c)  The Board of Governors of The University of North Carolina shall take appropriate action to encourage the effective utilization of the North Carolina Electronic Procurement Service by the constituent institutions. By April 1, 2002, and annually thereafter, the Department of Administration and the Office of Information Technology Services, in conjunction with the UNC General Administration, shall review the effect of the exemptions granted under subsection (b) of this section upon the North Carolina Electronic Procurement Service and shall report their findings to the Joint Select Committee on Information Technology and the Joint Legislative Commission on Governmental Operations.

SECTION 15.6.(d)  G.S. 143-49 is amended by adding a new subdivision to read:

"(8)      To establish and maintain a procurement card program for use by State agencies, community colleges, constituent institutions of The University of North Carolina, and local school administrative units. The Secretary of Administration may adopt temporary rules for the implementation and operation of the program in accordance with the payment policies of the State Controller, after consultation with the Office of Information Technology Services. These rules would include the establishment of appropriate order limits that leverage the cost savings and efficiencies of the procurement card program in conjunction with the fullest possible use of the North Carolina E-Procurement Service. Procurement cards shall be utilized only through the E-Procurement Service. North Carolina State University and the University of North Carolina at Chapel Hill may use procurement cards consistent with the rules adopted by the Secretary, provided that the procurement cards have a purchase limit of two hundred fifty dollars ($250.00) per month. Prior to implementing the program, the Secretary shall consult with the State Controller, the UNC General Administration, the Community Colleges System Office, the State Auditor, the Department of Public Instruction, and the Office of Information Technology Services. The Secretary may periodically adjust the order limit authorized in this section after consulting with the State Controller, the UNC General Administration, the Community Colleges System Office, the Department of Public Instruction, and the Office of Information Technology Services."

SECTION 15.6.(e)  This section is effective when it becomes law.

 

Requested by:            Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson

NORTH CAROLINA INFORMATION HIGHWAY SITES

SECTION 15.7.(a)  Of the funds available in the Office of Information Technology Services' operating cash, the sum of three million twenty-four thousand one hundred eighty-five dollars ($3,024,185) shall be used for the 2001-2002 fiscal year to fund North Carolina Information Highway (NCIH) sites that received funding from ITS operating cash during the 2000-2001 fiscal year. In consultation with the Community Colleges System Office, the Department of Public Instruction, and the respective NCIH sites, the Office of Information Technology Services shall take appropriate action to ensure that NCIH funds are utilized efficiently, including modification of the allocations of funding for NCIH sites.

SECTION 15.7.(b)  In consultation with the Office of Information Technology Services, the Community Colleges System Office shall:

(1)       Evaluate utilization of the existing NCIH sites at community colleges.

(2)       Consider appropriate actions relative to those community college sites that have experienced low utilization of the NCIH in the past year, including how funding for low-utilization sites should be reallocated to provide NCIH service to other community colleges that have higher usage, a demonstrated need, and the necessary facilities to utilize the NCIH most effectively and efficiently.

The Office of Information Technology Services may reallocate funding for NCIH sites at community colleges based upon the recommendations of the Community Colleges System Office.

SECTION 15.7.(c)  In consultation with the Office of Information Technology Services, the Department of Public Instruction shall:

(1)       Evaluate utilization of the existing NCIH sites in the public schools.

(2)       Consider appropriate actions relative to those public school sites that have experienced low utilization of the NCIH in the past year, including how funding for low-utilization sites should be reallocated to provide NCIH service to other public schools that have higher usage, a demonstrated need, and the necessary facilities to utilize the NCIH most effectively and efficiently.

The Office of Information Technology Services may reallocate funding for NCIH sites in the public schools based upon the recommendations of the Department of Public Instruction.

SECTION 15.7.(d)  The House of Representatives and Senate Appropriations Subcommittees on Education shall jointly review the use of the North Carolina Information Highway and recommend a mechanism for funding the sites beyond the 2001-2002 fiscal year.

 

Requested by:            Senators Reeves, Hagan, Miller, Plyler, Odom, Lee; Representatives Tolson, Tucker, Russell, Miner, Easterling, Oldham, Redwine, Thompson

REDUCTION IN EXPENDITURES BASED ON ITS RATE REDUCTIONS/no rate increases to offset reductions

SECTION 15.8.(a)  The Office of State Budget and Management shall administer reductions in the Telephone (532811), Telecommunications Data (532812), and Computer Data Processing (532821) expenditure accounts in an amount equal to four million dollars ($4,000,000) of General Fund appropriations through the allotment system established in G.S. 143-17.  The reductions in expenditures shall be based on a percentage reduction in the rates for telephone/telecommunications and computer data processing services provided by the Office of Information Technology Services.

The Office of Information Technology Services shall have flexibility in establishing the rate reductions based upon a clear showing of cost reductions achieved through operational efficiencies or cost reductions achieved through less costly contractual arrangements. Based upon the rate reductions established by the Office of Information Technology Services, the Office of State Budget and Management shall have flexibility in allocating the reduction amounts among the Telephone (532811), Telecommunications Data (532812), and Computer Data Processing (532821) expenditure accounts. During Fiscal Years 2001-2002 and 2002-2003 allotments to each spending agency shall be reduced by a percentage of the General Fund amounts appropriated to that agency for telephone/telecommunications and computer data processing services.

The Office of State Budget and Management shall coordinate the rate reductions and agency expenditure accounts reductions to ensure that expenditure reductions match rate reductions. The Office of Information Technology Services shall report the rate reductions to the Information Resources Management Commission, the Chairs of the House of Representatives and Senate Appropriations Committees, the Chairs of the Joint Appropriations Subcommittees on Information Technology, and to the Fiscal Research Division within 30 days of the certification of the 2001-2003 biennial budget.

SECTION 15.8.(b)  The Office of Information Technology Services shall not increase rates to offset any reductions required by this act.

 

PART XVI.  HOUSING FINANCE AGENCY

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

HOME PROGRAM MATCHING FUNDS

SECTION 16.1.(a)  Funds appropriated in this act to the Housing Finance Agency for the federal HOME Program shall be used to match federal funds appropriated for the HOME Program.  In allocating State funds appropriated to match federal HOME Program funds, the Agency shall give priority to HOME Program projects, as follows:

(1)       First priority to projects that are located in counties designated as Tier One, Tier Two, or Tier Three Enterprise Counties under G.S. 105-129.3; and

(2)       Second priority to projects that benefit persons and families whose incomes are fifty percent (50%) or less of the median family income for the local area, with adjustments for family size, according to the latest figures available from the United States Department of Housing and Urban Development.

The Housing Finance Agency shall report to the Joint Legislative Commission on Governmental Operations by April 1 of each year concerning the status of the HOME Program and shall include in the report information on priorities met, types of activities funded, and types of activities not funded.

SECTION 16.1.(b)  If the United States Congress changes the HOME Program such that matching funds are not required for a given program year, then the Agency shall not spend the matching funds appropriated under this act for that program year.

SECTION 16.1.(c)  Funds appropriated in this act to match federal HOME Program funds shall not revert to the General Fund on June 30, 2002, or on June 30, 2003.

 

PART XVII.  DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

authorize promotion of nc farm products at rest areas and welcome centers

SECTION 17.1.  Article 6D of Chapter 136 of the General Statutes is amended by adding a new section to read:

"§ 136-89.59A. Promotion of North Carolina farm products at rest areas and welcome centers.

Subject to the approval of the Department, the Department of Agriculture and Consumer Services may distribute promotional materials and free samples of North Carolina farm products at rest areas and welcome centers located on controlled-access facilities and operated by the State for the purpose of promoting North Carolina farm products."

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

TRansfer rural rehabilitation corporation to agricultural finance authority

SECTION 17.2.(a)  G.S. 143A-63 reads as rewritten:

"§ 143A-63.  North Carolina Rural Rehabilitation Corporation; transfer.

The North Carolina Rural Rehabilitation Corporation, and board of directors, as contained in Chapter 137 of the General Statutes and the laws of this State, is hereby transferred by a Type II Type I transfer to the North Carolina Agricultural Finance Authority in the Department of Agriculture and Consumer Services."

SECTION 17.2.(b)  Article 2 of Chapter 137 of the General Statutes is repealed.

SECTION 17.2.(c)  No later than January 15, 2002, the North Carolina Agricultural Finance Authority shall report to the Joint Legislative Commission on Governmental Operations, the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives, and the Fiscal Research Division on the status of the transfer required under this section.  This report shall include any statutory changes that are needed to implement the transfer required under this section.

SECTION 17.2.(d)  This section is effective when it becomes law.

 

Requested by:            Senators Cunningham, Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

farmland preservation funds

SECTION 17.3.  The sum of two hundred thousand dollars ($200,000) appropriated in this act to the Department of Agriculture and Consumer Services for the North Carolina Farmland Preservation Trust Fund established in G.S. 106-744 shall be used to continue the purposes for which the Fund was established.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

Farmers markets and agricultural centers/vending facility exemption

SECTION 17.4.  G.S. 111-42(c), as amended by S.L. 2000-41, reads as rewritten:

"(c)      "State property or State building" means building and land owned, leased, or otherwise controlled by the State, exclusive of schools, colleges and universities, the North Carolina State Fair, farmers markets and agricultural centers, the Legislative Office Building, and the State Legislative Building."

 

PART XVIII.  DEPARTMENT OF LABOR

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

labor department/ elevator inspection fee receipts

SECTION 18.1.  If House Bill 232 of the 2001 General Assembly becomes law, the Department of Labor shall allocate the increased elevator and amusement device inspection fee receipts to support the Elevator and Amusement Device Bureau, and the Director of the Budget shall reduce appropriations to the Department as provided in G.S. 143-25.

 

PART XIX.  DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

statewide beaver damage control program funds

SECTION 19.1.  Of the funds appropriated in this act to the Wildlife Resources Commission, the sum of five hundred thousand dollars ($500,000) for the 2001-2002 fiscal year and the sum of five hundred thousand dollars ($500,000) for the 2002-2003 fiscal year shall be used to provide the State share necessary to support the beaver damage control program established in G.S. 113-291.10, provided the sum of at least twenty-five thousand dollars ($25,000) in federal funds is available each fiscal year of the biennium to provide the federal share.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

grassroots science program

SECTION 19.2.  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 twenty thousand dollars ($3,120,000) for fiscal year 2001-2002 and the sum of three million one hundred twenty thousand dollars ($3,120,000) for fiscal year 2002-2003 are allocated as grants-in-aid for each fiscal year as follows:

 

2001-2002            2002-2003

 

Aurora Fossil Museum                                                 $58,733                      $58,733

Cape Fear Museum                                                     $209,018                   $209,018

Catawba Science Center                                            $167,833                   $167,833

Colburn Gem and Mineral Museum, Inc.                   $71,336                      $71,336

Discovery Place                                                         $699,985                   $699,985

Granville County Museum Commission,

Inc. - Harris Gallery                                                  $61,553                      $61,553

The Health Adventure Museum of Pack

Place Education, Arts and

Science Center, Inc.                                                $157,305                   $157,305

Imagination Station                                                       $94,815                      $94,815

Iredell County Children's Museum                             $58,342                      $58,342

Museum of Coastal Carolina                                       $64,141                      $64,141

Natural Science Center of Greensboro                    $250,850                   $250,850

North Carolina Museum of Life

and Science                                                              $445,843                   $445,843

Rocky Mount Children's Museum                              $88,855                      $88,855

Schiele Museum of Natural History                         $348,433                   $348,433

Sci Works Science Center and

Environmental Park of Forsyth County                 $178,947                   $178,947

Western North Carolina Nature Center                   $164,011                   $164,011

 

Total                                              $3,120,000                $3,120,000

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

Agriculture Cost Share Technical Assistance Program funds

SECTION 19.2A.  Of the funds appropriated by this act to the Department of Environment and Natural Resources for the Agriculture Cost Share Program for Nonpoint Source Pollution Control for financial assistance funding, the sum of two hundred forty thousand dollars ($240,000) for the 2001-2002 fiscal year and the sum of two hundred forty thousand dollars ($240,000) for the 2002-2003 fiscal year shall be used to support the cost-share technical assistance in soil and water conservation districts participating in the Agriculture Cost Share Program for Nonpoint Source Pollution Control.  This reallocation of funds is permanent, and the transfer of funds as provided by this section shall continue in subsequent fiscal years unless directed otherwise by the General Assembly.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

terms for members of the North Carolina Parks and recreation authority

SECTION 19.3.(a)  G.S. 143B-313.2(b) reads as rewritten:

"(b)      Terms. - Members shall serve two-year termsstaggered terms of office of three years. Members shall serve no more than two full two-year termsconsecutive three-year terms. After serving two consecutive three-year terms, a member is not eligible for appointment to the Authority for at least one year after the expiration date of that member's most recent term. Upon the expiration of a two-year three-year term, a member may continue to serve until a successor is appointed and duly qualified as provided by G.S. 128-7. The term of members appointed under odd-numbered subdivisions of subsection (a) of this section shall expire on 30 June of odd-numbered years. The term of members appointed under even-numbered subdivisions of subsection (a) of this section shall expire on 30 June of even-numbered years.The terms of members appointed under subdivision (1), (5), (7), or (9) of subsection (a) of this section shall expire on July 1 of years that are evenly divisible by three. The terms of members appointed under subdivision (2), (4), (8), or (11) of subsection (a) of this section shall expire on July 1 of years that follow by one year those years that are evenly divisible by three. The terms of members appointed under subdivision (3), (6), or (10) of subsection (a) of this section shall expire on July 1 of years that precede by one year those years that are evenly divisible by three."

SECTION 19.3.(b)  In order to alter the length of the staggered terms from two years to three years for the North Carolina Parks and Recreation Authority and to provide for an orderly transition in membership of the Authority as specified in G.S. 143B-313.2, as amended by subsection (a) of this section, notwithstanding G.S. 143B-313.2(b), as amended by subsection (a) of this section, the following apply:

(1)       John D. Runkle shall serve in the position established by G.S. 143B-313.2(a)(1) until July 1, 2001.

(2)       Wendell Begley shall serve in the position established by G.S. 143B-313.2(a)(2) until July 1, 2002.

(3)       Jonathon B. Howes shall serve in the position established by G.S. 143B-313.2(a)(3) until July 1, 2003.

(4)       Ron Kincaid shall serve in the position established by G.S. 143B-313.2(a)(4) until July 1, 2002.

(5)       Russell Robinson III shall serve in the position established by G.S. 143B-313.2(a)(5) until July 1, 2001.

(6)       Roy Alexander shall serve in the position established by G.S. 143B-313.2(a)(6) until July 1, 2003.

(7)       Kenneth Sadler shall serve in the position established by G.S. 143B-313.2(a)(7) until July 1, 2001.

(8)       Leslie Anderson shall serve in the position established by G.S. 143B-313.2(a)(8) until July 1, 2002.

(9)       Troy Boyd shall serve in the position established by G.S. 143B-313.2(a)(9) until July 1, 2001.

(10)     Harriet L. Farrior shall serve in the position established by G.S. 143B-313.2(a)(10) until July 1, 2003.

(11)     Eddie Holbrook shall serve in the position established by G.S. 143B-313.2(a)(11) until July 1, 2002.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

receipts for NC Zoological park admission fee increase to be used for marketing purposes

SECTION 19.4.  Subject to the approval of the Secretary of Environment and Natural Resources, up to four hundred thousand dollars ($400,000) of the receipts from the increase in admission fees to the North Carolina Zoological Park for the 2001-2002 fiscal year and up to four hundred thousand dollars ($400,000) of those receipts for the 2002-2003 fiscal year may be used for marketing activities related to promoting the North Carolina Zoological Park.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

North carolina water quality workgroup initiative/rivernet monitoring system pilot program/research funds

SECTION 19.5.  Article 21 of Chapter 143 of the General Statutes is amended by adding a new section to read:

"§ 143-215.8D. North Carolina Water Quality Workgroup;  Rivernet.

(a)       The Department of Environment and Natural Resources and North Carolina State University shall jointly establish the North Carolina Water Quality Workgroup. The Workgroup shall work collaboratively with the appropriate divisions of the Department of Environment and Natural Resources and North Carolina State University, the Scientific Advisory Council on Water Resources and Coastal Fisheries Management, the Environmental Management Commission, and the Environmental Review Commission to identify the scientific and State agency databases that can be used to formulate public policy regarding the State's water quality, evaluate those databases to determine the information gaps in those databases, and establish the priorities for obtaining the information lacking in those databases. The Workgroup shall have the following duties:

(1)       To address specifically the ongoing need of evaluation, synthesis, and presentation of current scientific knowledge that can be used to formulate public policy on water quality issues.

(2)       To identify knowledge gaps in the current understanding of water quality problems and fill these gaps with appropriate research projects.

(3)       To maintain a web-based water quality data distribution site.

(4)       To organize and evaluate existing scientific and State agency water quality databases.

(5)       To prioritize recognized knowledge gaps in water quality issues for immediate funding.

(b)       The North Carolina Water Quality Workgroup shall be composed of no more than 15 members. Those members shall be jointly appointed by the Chancellor of North Carolina State University and the Secretary of Environment and Natural Resources. Any person appointed as a member of the Workgroup shall be knowledgeable in one of the following areas:

(1)       Water Quality Assessment, Water Quality Monitoring, and Water Quality Permitting.

(2)       Nutrient Management.

(3)       Water Pollution Control.

(4)       Waste Management.

(5)       Groundwater Resources.

(6)       Stream Hydrology.

(7)       Aquatic Biology.

(8)       Environmental Education and Web-Based Data Dissemination.

(c)       North Carolina State University shall provide meeting facilities for the North Carolina Water Quality Workgroup as requested by the Chair.

(d)       The members of the North Carolina Water Quality Workgroup shall elect a Chair. The Chair shall call meetings of the Workgroup and set the meeting agenda.

(e)       The Chair of the North Carolina Water Quality Workgroup shall report each year by January 30 to the Scientific Advisory Council on Water Resources and Coastal Fisheries Management, to the Environmental Review Commission, to the Cochairs of the House of Representatives  and Senate Appropriations Subcommittees on Natural and Economic Resources, and to the Chancellor of North Carolina State University or the Chancellor's designee on the previous year's activities, findings, and recommendations of the North Carolina Water Quality Workgroup.

(f)        The North Carolina Water Quality Workgroup shall develop a water quality monitoring system to be known as Rivernet that effectively uses the combined resources of North Carolina State University and State agencies. The Rivernet system shall be designed to implement advances in monitoring technology and information management systems with web-based data dissemination in the waters that are impaired based on the criteria of the State's basinwide water quality management plans. Water quality and nutrient parameters shall be continuously monitored at each station, and the data shall be sent back to a centralized computer server.

The Rivernet system shall be coordinated with related data collection and monitoring activities of the Department of Environment and Natural Resources, the Water Resources Research Institute, the North Carolina Water Quality Workgroup, and other research efforts pursued by academic institutions or State government entities. If the North Carolina Water Quality Workgroup chooses to employ a technology for which there are testing procedure guidelines promulgated by the United States Environmental Protection Agency, the American Public Health Association, the American Water Works Association, or the Water Environment Federation then the testing procedures shall comply with the appropriate guidelines. If the North Carolina Water Quality Workgroup chooses to employ a technology for which there are no testing procedure guidelines promulgated by any of the groups cited in this subsection, then the North Carolina Water Quality Workgroup may establish testing procedure guidelines.

The Rivernet system shall also have the capabilities to trigger alarms and notify the appropriate member of the Workgroup when monitoring stations exceed defined limits indicating a spill or a significant water quality or nutrient measurement event, which then can be comprehensively analyzed."

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

continue one-stop permit assistance pilot program

SECTION 19.6.(a)  The Department of Environment and Natural Resources shall continue the one-stop environmental permit application assistance and tracking system pilot project established under Section 13.7 of S.L. 2000-67 during the 2001-2003 fiscal biennium.  It is the intent of the General Assembly that the Department of Environment and Natural Resources expand this pilot program to a statewide program effective in all of the Department's regional offices if the resources are available to do so during the 2001-2003 fiscal biennium.  The provisions of Section 13.7(a) through (d) of S.L. 2000-67 apply to the pilot program under this section.

SECTION 19.6.(b)  The Department of Environment and Natural Resources shall report to the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives, the Fiscal Research Division, and the Environmental Review Commission no later than April 1, 2002, and again no later than April 1, 2003, regarding the results of the pilot project continued under this section.  This report shall include the number of environmental permits in the pilot project that took more than 90 days to issue or deny; the types of permits those were; the reasons for the extended processing time of those permits; how the time within which the permit was actually issued or denied compared with the projected time frame provided to the applicant by the Department; based on the data gathered in the pilot project, any recommendations regarding what the permit time frames should be for all major permits issued by the Department; and to what extent, if any, the program has been expanded to a statewide program under this section.

SECTION 19.6.(c)  The Department of Environment and Natural Resources may adopt temporary rules to implement this section.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

Division of Radiation Protection Self-Sufficiency Plan

SECTION 19.7.  The Department of Environment and Natural Resources shall develop a plan to make the Division of Radiation Protection of the Department of Environment and Natural Resources self-supporting within two years.  The Department of Environment and Natural Resources shall report the details of this plan to the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives no later than January 15, 2002.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

DENR to Study feasibility of Transferring Sedimentation Program to Local Governments

SECTION 19.8.  The Department of Environment and Natural Resources shall study the feasibility of transferring the program within the Department of Environment and Natural Resources under the Sedimentation Pollution Control Act of 1973, Article 4 of Chapter 113A of the General Statutes, to local governments.  The Department of Environment and Natural Resources shall consider the economic impact that the proposed transfer would have on local governments, any savings that would be generated for the State by the proposed transfer, and any statutory changes that would be needed to implement such a transfer.  The Department of Environment and Natural Resources shall report its findings and recommendations, including legislative proposals, to the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives no later than April 1, 2002.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

Submerged Lands Program/Secretary designate program manager

SECTION 19.9.  The Secretary of Environment and Natural Resources shall designate from existing staff within the Department of Environment and Natural Resources a staff position to be responsible for managing the Submerged Lands Program.  By November 1, 2001, the Secretary shall report to both the Senate and House of Representatives Cochairs of the Appropriations Subcommittees on Natural and Economic Resources what position will manage the Program.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

DENR RECLASSIFICATION OF Senior Field Officer Positions REPORT

SECTION 19.10.  The Department of Environment and Natural Resources shall report to the Senate and House of Representatives Cochairs of the full Appropriations Committee, and to the Senate and House of Representatives Cochairs of the Natural and Economic Resources Appropriations Subcommittees by January 1, 2002, on the Department’s reclassification of its regional office managers as directed by Section 26.12 of S.L. 1995-324.  The report shall include the following:  the location and title of the four remaining positions, a description of the duties and responsibilities assigned to each position, a description of the day-to-day activities of each of the positions, an explanation of the purposes each of the positions serve, an explanation of how the positions benefit the Department, and a description of the role that the positions play in each of the respective communities and regions in which the positions are located.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

DENR Study of Environmental Permitting Process

SECTION 19.11.(a)  The Department of Environment and Natural Resources shall study the permitting process in the Division of Water Quality, the Division of Coastal Management as it relates to CAMA permits, and the Division of Land Resources as it relates to the sedimentation and erosion control plans.  The study shall at a minimum include the following:

(1)       A description of how the permitting process currently works.

(2)       The number and types of permits issued by each of these Divisions.

(3)       The time frame within which each of the types of permits is issued.

(4)       The adequacy of existing staff levels to complete the issuance of permits in a timely manner.

(5)       Whether duplication in the permitting process exists between the regional office and the central office staff.

(6)       Efficiencies to be gained from delegation of authority to regional offices.

(7)       Efficiencies to be gained from issuing more general permits.

(8)       The amount of revenue generated by the permits and retained as departmental receipts.

(9)       Any other information or issue deemed relevant by the Fiscal Research Division to provide an accurate analysis of the issues.

SECTION 19.11.(b)  In conducting this study, the Department shall record its tracking of the permits and the statistical data regarding those permits in a format that is easily accessible and usable for fiscal analysis by the Fiscal Research Division.

SECTION 19.11.(c)  The Department shall make a report with its findings and recommendations to the Senate and House of Representatives Cochairs of the full Appropriations Committee and to the Senate and House of Representatives Cochairs of the Natural and Economic Resources Appropriations Subcommittees, on ways to improve, expedite, or simplify the permitting process no later than March 10, 2002.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Baker, Easterling, Oldham, Redwine, Thompson

REALLOCATE TOWN FORK CREEK FUNDS

SECTION 19.12.(a)  Section 15.11(a) of S.L. 1997-443, as amended by Section 15.3 of S.L. 1999-237, Section 13.5 of S.L. 2000-67, and Section 90(e) of S.L. 2000-140, reads as rewritten:

"(a)      The funds placed in a reserve account in the Department of Environment, Health, and Natural Resources pursuant to Section 26.3(c) of Chapter 507 of the 1995 Session Laws shall not revert until June 30, 2001. 2003. Those funds are reallocated as follows:

(1)       Five hundred four thousand five hundred sixty forty-one thousand six hundred eighty dollars ($504,560) ($541,680) to the Stokes County Water and Sewer Authority, Inc., for the Germanton Water Project.

(2)       Nine hundred thirty thousand six hundred eighty dollars ($930,680)  Eight hundred ninety-three thousand five hundred sixty dollars ($893,560) to the Stokes County Water and Sewer Authority, Inc., for the Walnut Cove/Industrial Site Connection Project. Any funds under this subdivision not necessary for this project are reallocated to the project listed under subdivision (3) of this subsection upon the written finding of the Stokes County Water and Sewer Authority, Inc.

(3)       Eighty thousand dollars ($80,000) to the Stokes County Water and Sewer Authority, Inc., for the Dan River Project.

(4)       Thirty thousand dollars ($30,000) to the Department of Environment, Health, and Natural Resources for the Limestone Creek small watershed project in Duplin County.

(5)       Three hundred forty thousand six hundred forty dollars ($340,640) to the Department of Environment, Health, and Natural Resources for the Deep Creek small watershed project in Yadkin County."

SECTION 19.12.(b)   This section becomes effective June 30, 2001.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Warwick, Easterling, Oldham, Redwine, Thompson

FAIR GEOGRAPHIC REPRESENTATION IN APPOINTMENTS TO THE ENVIRONMENTAL MANAGEMENT COMMISSION

SECTION 19.13.(a)  G.S. 143B-282 is amended by adding a new subsection to read:

"(e)      In appointing the members of the Commission, the appointing authorities shall make every effort to ensure fair geographic representation of the Commission."

SECTION 19.13.(b)  This section is effective when it becomes law and applies to appointments made on or after that date.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

DENR POSITION FOR SCRAP TIRE PROGRAM

SECTION 19.14.  Notwithstanding the provisions of G.S. 130A-309.63, the Department of Environment and Natural Resources may use funds in the Scrap Tire Disposal Account that, pursuant to G.S. 130A-309.63(d), are to be used for the cleanup of scrap tire collection sites, to maintain and support a position for the 2001-2002 fiscal year and for the 2002-2003 fiscal year to provide regulatory assistance to local governments to develop programs to prevent scrap tires from outside the State from being presented for free disposal and to complete the cleanup of nuisance tire collection sites.

 

PART XX.  DEPARTMENT OF COMMERCE

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

TOURISM PROMOTION FUNDS

SECTION 20.1.  Funds appropriated in this act to the Department of Commerce for tourism promotion grants shall be allocated according to per capita income, unemployment, and population growth in an effort to direct funds to counties most in need in terms of lowest per capita income, highest unemployment, and slowest population growth, in the following manner:

(1)       Counties 1 through 20 are each eligible to receive a maximum grant of seven thousand five hundred dollars ($7,500) for each fiscal year, provided these funds are matched on the basis of one non-State dollar for every four State dollars.

(2)       Counties 21 through 50 are each eligible to receive a maximum grant of three thousand five hundred dollars ($3,500) for two of the next three fiscal years, provided these funds are matched on the basis of one non-State dollar for every three State dollars.

(3)       Counties 51 through 100 are each eligible to receive a maximum grant of three thousand five hundred dollars ($3,500) for alternating fiscal years, beginning with the 1991-92 fiscal year, provided these funds are matched on the basis of four non-State dollars for every State dollar.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

WANCHESE SEAFOOD INDUSTRIAL PARK FUNDS/OREGON INLET FUNDS

SECTION 20.2.(a)  Of the funds appropriated in this act to the Department of Commerce for the Wanchese Seafood Industrial Park, the sum of one hundred twenty-seven thousand eight hundred seventy dollars ($127,870) for the 2001-2002 fiscal year and the sum of one hundred twenty-seven thousand eight hundred seventy dollars ($127,870) for the 2002-2003 fiscal year may be expended by the North Carolina Seafood Industrial Park Authority for operations, maintenance, repair, and capital improvements in accordance with Article 23C of Chapter 113 of the General Statutes, in addition to funds available to the Authority for these purposes.

SECTION 20.2.(b)  Funds appropriated to the Department of Commerce for the 2000-2001 fiscal year for the Oregon Inlet Project that are unexpended and unencumbered as of June 30, 2001, shall not revert to the General Fund on June 30, 2001, but shall remain available to the Department for legal costs associated with the Project.  This subsection becomes effective June 30, 2001.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

INDUSTRIAL RECRUITMENT COMPETITIVE FUND

SECTION 20.3.(a) Funds appropriated in this act to the Department of Commerce for the Industrial Recruitment Competitive Fund shall be used to continue the Fund.  The purpose of the Fund is to provide financial assistance to those businesses or industries deemed by the Governor to be vital to a healthy and growing State economy and that are making significant efforts to establish or expand in North Carolina.  Moneys allocated from the Fund shall be used for the following purposes:

(1)       Installation or purchase of equipment;

(2)       Structural repairs, improvements, or renovations of existing buildings to be used for expansion; and

(3)       Construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment for existing buildings.

Moneys may also be used for construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment to serve new or proposed industrial buildings used for manufacturing and industrial operations. The Governor shall adopt guidelines and procedures for the commitment of moneys from the Fund.

SECTION 20.3.(b)  The Department of Commerce shall report on or before January 1, 2002, and quarterly thereafter to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on the commitment, allocation, and use of funds allocated from the Industrial Recruitment Competitive Fund.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

ABOLISH CENTER FOR ENTREPRENEURSHIP AND TECHNOLOGY

SECTION 20.4.(a)  Effective July 1, 2001, the Center for Entrepreneurship and Technology (hereinafter Center) in the Department of Commerce (hereinafter Department) is abolished.

SECTION 20.4.(b)  The Department shall not carryforward any unencumbered State funds for the Center to the 2001-2002 fiscal year.  This subsection becomes effective June 30, 2001.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

COMMERCE STUDY/ Consolidate BUSINESS AND INDUSTRY dIVISION regional offices AND regional ECONOMIC DEVELOPMENT COMMISSIONs

SECTION 20.5.  The Department of Commerce (hereinafter Department) shall study the feasibility of consolidating each of the Business and Industry Division regional offices (hereinafter B&I) with a Regional Economic Development Commission (hereinafter Commission) office. In considering whether consolidation is feasible and would better advance the goals of both the B&I and the Commissions, the Department shall do at least the following:

(1)       Evaluate the degree to which existing shared offices in Asheville, Edenton, Greensboro, and Research Triangle Park differ in organization, budget, and performance from the B&I offices in Charlotte, Greenville, and Fayetteville that do not share office space with Commissions.

(2)       Evaluate the extent to which B&I staff responsibilities in each B&I office duplicate those performed by the Commission staff in their region regardless of whether the offices are shared or separate.

(3)       Evaluate the extent to which existing B&I offices in Lenoir and Bryson City add value cost-effectively to the service provided by the Asheville office. In particular, the Department shall consider how the same level of service might be provided if the Lenoir and Bryson City offices were eliminated or merged into the Asheville office.

(4)       Estimate any costs that would result from closing B&I offices in Charlotte, Greenville, and Fayetteville and consolidating them with Commissions in Charlotte, Kinston, and Elizabethtown, respectively. The Department shall also estimate any costs that would result from closing B&I offices in Lenoir and Bryson City and consolidating them with the Asheville office.

(5)       Identify whether the actions described in subdivision (4) of this section would produce any net savings and, if affirmative, identify the sources of the savings. The Department shall document whether all current B&I regional staff would remain essential to program function if the closings and consolidations described in subdivision (4) of this section were carried out.

The Department shall report its findings and recommendations, including any estimates of efficiencies and cost savings that may be produced by consolidating the Charlotte, Greenville, and Fayetteville B&I regional offices with Commissions and consolidating the Lenoir and Bryson City offices with the existing shared office in Asheville, to the House of Representatives and Senate Appropriations Subcommittees on Natural and Economic Resources by January 15, 2002.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

WORKER TRAINING TRUST FUND APPROPRIATIONS

SECTION 20.6.(a) There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of five million nine hundred thirty thousand sixteen dollars ($5,930,016) for the 2001-2002 fiscal year for the operation of local offices.

SECTION 20.6.(b) Notwithstanding the provisions of G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the following agencies the following sums for the 2001-2002 fiscal year for the following purposes:

(1)       Two million one hundred sixty-six thousand forty-seven dollars ($2,166,047) for the 2001-2002 fiscal year to the Department of Commerce, Division of Employment and Training, for the Employment and Training Grant Program;

(2)       Nine hundred forty-one thousand seven hundred sixty dollars ($941,760) for the 2001-2002 fiscal year to the Department of Labor for customized training of the unemployed and the working poor for specific jobs needed by employers through the Department's Bureau for Training Initiatives;

(3)       One million six hundred forty-four thousand three hundred twelve dollars ($1,644,312) for the 2001-2002 fiscal year to the Community Colleges System Office to continue the Focused Industrial Training Program;

(4)       Two hundred eleven thousand eight hundred ninety-six dollars ($211,896) for the 2001-2002 fiscal year to the Employment Security Commission for the State Occupational Information Coordinating Committee to develop and operate an interagency system to track former participants in State education and training programs;

(5)       Three hundred seventy-six thousand seven hundred four dollars ($376,704) for the 2001-2002 fiscal year to the Community Colleges System Office for a training program in entrepreneurial skills to be operated by North Carolina REAL Enterprises;

(6)       Fifty-six thousand five hundred six dollars ($56,506) for the 2001-2002 fiscal year to the Employment Security Commission 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; and

(7)       Nine hundred forty-one thousand seven hundred sixty dollars ($941,760) for the 2001-2002 fiscal year to the Department of Labor to continue the Apprenticeship Program.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

biotechnology center

SECTION 20.7.(a)  The North Carolina Biotechnology Center shall recapture funds spent in support of successful research and development efforts in the for-profit private sector.

SECTION 20.7.(b)  The North Carolina Biotechnology Center shall provide funding for biotechnology, biomedical, and related bioscience applications under its Business and Science Technology Programs.

SECTION 20.7.(c)  The North Carolina Biotechnology Center shall:

(1)       By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2000-2001 program activities, objectives, and accomplishments;

b.         State fiscal year 2000-2001 itemized expenditures and fund sources;

c.         State fiscal year 2001-2002 planned activities, objectives, and accomplishments including actual results through December 31, 2001; and

d.         State fiscal year 2001-2002 estimated itemized expenditures and fund sources including actual  expenditures and fund sources through December 31, 2001;

(2)       By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2001-2002 program activities, objectives, and accomplishments;

b.         State fiscal year 2001-2002 itemized expenditures and fund sources;

c.         State fiscal year 2002-2003 planned activities, objectives, and accomplishments including actual results through December 31, 2002; and

d.         State fiscal year 2002-2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2002; and

(3)       Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.

SECTION 20.7.(d)  The North Carolina Biotechnology Center shall provide a report containing detailed budget, personnel, and salary information to the Office of State Budget and Management and to the Fiscal Research Division in the same manner as State departments and agencies in preparation for biennium budget requests.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Alexander, Insko, Easterling, Oldham, Redwine, Thompson

Biotechnology Center/Technological development authority, Inc., profit sharing with state

SECTION 20.8.(a)  Prior to receiving any General Fund disbursements for the 2001-2003 biennium, the North Carolina Biotechnology Center (hereinafter Center) and the North Carolina Technological Development Authority, Inc., (hereinafter Authority) must each enter into a memorandum of understanding with the Attorney General's Office in which they commit to do all of the following:

(1)       Work with the Attorney General's Office to craft a legal agreement that specifies the manner in which any profits from investments made with State funds shall be shared with the State.

(2)       Negotiate the terms of the legal agreement in good faith.

(3)       Submit the proposed legal agreement to the Joint Legislative Commission on Governmental Operations for review by January 15, 2002.

(4)       Execute the legal agreement no later than 30 days after it is presented to the Joint Legislative Commission on Governmental Operations.

SECTION 20.8.(b)  If the Center or Authority fails to execute the legal agreement as provided in subdivision (a)(4) of this section, all disbursements to the Center or Authority shall be suspended until the legal agreement has been executed.

SECTION 20.8.(c)  The Attorney General's Office shall consult with the Fiscal Research Division in crafting the memorandum of understanding and the legal agreement described in subsection (a) of this section.

SECTION 20.8.(d)  The Center and the Authority shall submit a copy of the memorandum of understanding to the Fiscal Research Division prior to receiving any General Fund disbursements for the 2001-2003 biennium and shall submit a copy of the proposed legal agreement to the Division by January 15, 2002.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

NORTH CAROLINA TECHNOLOGICAL DEVELOPMENT AUTHORITY, INC./yadkin/pee Dee Lakes projects, inc./north carolina real enterprises/World trade center north carolina REPORTING REQUIREMENTS

SECTION 20.9.(a)  The North Carolina Technological Development Authority, Inc., (TDA), Yadkin/Pee Dee Lakes Project, Inc., North Carolina REAL Enterprises, and World Trade Center North Carolina shall do the following:

(1)       By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2001-2002 program activities, objectives, and accomplishments;

b.         State fiscal year 2001-2002 itemized expenditures and fund sources;

c.         State fiscal year 2002-2003 planned activities, objectives, and accomplishments including actual results through December 31, 2001; and

d.         State fiscal year 2002-2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2001.

(2)       Provide to the Fiscal Research Division a copy of the organizations' annual audited financial statement within 30 days of issuance of the statement.

SECTION 20.9.(b)  Fourth-quarter allotments shall not be released to TDA or North Carolina REAL Enterprises until each entity satisfies its reporting requirement for January 15, 2002.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

REGIONAL ECONOMIC DEVELOPMENT COMMISSION ALLOCATIONS

SECTION 20.10.(a)  Funds appropriated in this act to the Department of Commerce for regional economic development commissions shall be allocated to the following commissions in accordance with subsection (b) of this section: Western North Carolina Regional Economic Development Commission, Research Triangle Regional Commission, Southeastern North Carolina Regional Economic Development Commission, Piedmont Triad Partnership, Northeastern North Carolina Regional Economic Development Commission, Global TransPark Development Commission, and Carolinas Partnership, Inc.

SECTION 20.10.(b)  Funds appropriated pursuant to subsection (a) of this section shall be allocated to each regional economic development commission as follows:

(1)       First, the Department shall establish each commission's allocation by determining the sum of allocations to each county that is a member of that commission. Each county's allocation shall be determined by dividing the county's enterprise factor by the sum of the enterprise factors for eligible counties and multiplying the resulting percentage by the amount of the appropriation. As used in this subdivision, the term "enterprise factor" means a county's enterprise factor as calculated under G.S. 105-129.3;

(2)       Next, the Department shall subtract from funds allocated to the Global TransPark Development Zone the sum of two hundred four thousand four hundred thirty-three dollars ($204,433) in each fiscal year, which sum represents the interest earnings in each fiscal year on the estimated balance of seven million five hundred thousand dollars ($7,500,000) appropriated to the Global TransPark Development Zone in Section 6 of Chapter 561 of the 1993 Session Laws; and

(3)       Next, the Department shall redistribute the sum of two hundred four thousand four hundred thirty-three dollars ($204,433) in each fiscal year to the seven regional economic development commissions named in subsection (a) of this section. Each commission's share of this redistribution shall be determined according to the enterprise factor formula set out in subdivision (1) of this subsection. This redistribution shall be in addition to each commission's allocation determined under subdivision (1) of this subsection.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

regional commission reports

SECTION 20.11.(a)  Each regional economic development commission receiving a grant-in-aid from the Department of Commerce shall:

(1)       By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, and the Department of Commerce the following information:

a.         State fiscal year 2000-2001 program activities, objectives, and accomplishments;

b.         State fiscal year 2000-2001 itemized expenditures and fund sources;

c.         State fiscal year 2001-2002 planned activities, objectives, and accomplishments as specified in subdivisions (b)(1) through (b)(6) of this section including actual results through December 31, 2001;

d.         State fiscal year 2001-2002 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2001.

(2)       By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, and the Department of Commerce the following information:

a.         State fiscal year 2001-2002 program activities, objectives, and accomplishments;

b.         State fiscal year 2001-2002 itemized expenditures and fund sources;

c.         State fiscal year 2002-2003 planned activities, objectives, and accomplishments as specified in subdivisions (b)(1) through (b)(6) of this section including actual results through December 31, 2002;

d.         State fiscal year 2002-2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2002.

(3)       Provide to the Fiscal Research Division and the Department of Commerce a copy of its annual audited financial statement within 30 days of issuance of the statement.

SECTION 20.11.(b)  Each regional economic development commission receiving a grant-in-aid from the Department of Commerce in each fiscal year of the 2001-2003 biennium shall by January 15 of each fiscal year report to the Department of Commerce the following information for the most recently completed fiscal year:

(1)       The number of and description of marketing outreach events including trade shows, recruitment missions, and related activities;

(2)       The number of jobs saved;

(3)       The amount of investment and number of jobs created by the direct efforts of a commission;

(4)       Initiatives undertaken to establish certified sites and shell buildings;

(5)       The number of referrals or leads handled that were generated by the Department of Commerce;

(6)       The number and listing of available sites and buildings within the region served by a commission;

(7)       A listing of major accomplishments.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

Council of government funds

SECTION 20.12.(a)  Of the funds appropriated in this act to the Department of Commerce, nine hundred thirty-five thousand dollars ($935,000) for the 2001-2002 fiscal year and nine hundred thirty-five thousand dollars ($935,000) for the 2002-2003 fiscal year shall only be used as provided by this section.  Each regional council of government or lead regional organization is allocated up to fifty-five thousand dollars ($55,000) for each fiscal year, with the actual amount calculated as provided in subsection (b) of this section.

SECTION 20.12.(b)  The funds shall be allocated as follows:  A share of the maximum fifty-five thousand dollars ($55,000) each fiscal year shall be allocated to each county and smaller city, based on the most recent annual estimate of the Office of State Planning of the population of that county (less the population of any larger city within that county) or smaller city, divided by the sum of the total population of the region (less the population of larger cities within that region) and the total population of the region living in smaller cities.  Those funds shall be paid to the regional council of government for the region in which that city or county is located upon receipt by the Department of Commerce of a resolution of the governing board of the county or city requesting release of the funds.  If any city or county does not so request payment of funds by June 30 of a State fiscal year, that share of the allocation for that fiscal year shall revert to the General Fund.

SECTION 20.12.(c)  A regional council of government may use funds appropriated by this section only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, and other activities as deemed appropriate by the member governments.

SECTION 20.12.(d)  Funds appropriated by this section shall not be used for payment of dues or assessments by the member governments and shall not supplant funds appropriated by the member governments.

SECTION 20.12.(e)  As used in this section, "Larger City" means an incorporated city with a population of 50,000 or over.  "Smaller City" means any other incorporated city.

SECTION 20.12.(f)  Each council of government or lead regional organization shall do the following:

(1)       By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2000-2001 program activities, objectives, and accomplishments;

b.         State fiscal year 2000-2001 itemized expenditures and fund sources;

c.         State fiscal year 2001-2002 planned activities, objectives, and accomplishments, including actual results through December 31, 2001; and

d.         State fiscal year 2001-2002 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2001;

(2)       By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2001-2002 program activities, objectives, and accomplishments;

b.         State fiscal year 2001-2002 itemized expenditures and fund sources;

c.         State fiscal year 2002-2003 planned activities, objectives, and accomplishments, including actual results through December 31, 2002; and

d.         State fiscal year 2002-2003 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2002; and

(3)       Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.

 

Requested by:            Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee, Kerr, Warren; Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson

global transpark development commission membership changes

SECTION 20.13.(a)  G.S. 158-35(a) reads as rewritten:

"(a)      Commission Membership. - The governing body of the Zone is the Global TransPark Development Commission. The members of the Commission must be residents of the Zone and shall be appointed as follows:

(1)       The board of commissioners of each county participating in the Zone shall appoint three voting members, one of whom shall be a minority person as defined in G.S. 143-128(f)(2) and one of whom may be a member of the board of commissioners.

(2)       The Authority Commission shall appoint at least three but no more than seven voting members. By the appointment of these members, the Authority Commission shall ensure that the voting membership of the Commission includes at least seven women and seven members of a racial minority described in G.S. 143-128(f)(2). The Authority Commission shall appoint the fewest number of members necessary to achieve these minimums.

(3)       Four nonvoting members shall be appointed as follows:

a.         One appointed by the Chancellor of East Carolina University to represent the University.

b.         One appointed by a majority vote of the presidents of the community colleges located in the Zone, to represent the community colleges.

c.         One appointed by the chair of the State Ports Authority, to represent the sea ports of the State.

d.         One member of the board of directors of the Global TransPark Foundation, Inc., appointed by that board."

SECTION 20.13.(b)  G.S. 158-35(c) reads as rewritten:

"(c)      Removal; Vacancies. - A member of the Commission may be removed with or without cause by the appointing body. In addition, a majority of the Commission members may, by majority vote, remove a member of the Commission if that member does not attend at least three-quarters of the regularly scheduled meetings of the Commission during any consecutive 12-month period of service of that member on the Commission, except that absences excused by the Commission due to serious medical or family circumstances shall not be considered. If the Commission votes to remove a member under this subsection, the vacancy shall be filled in the same manner as the original appointment. Appointments to fill vacancies shall be made for the remainder of the unexpired term by the respective appointing authority. All members shall serve until their successors are appointed and qualified, unless removed from office."

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Hunter, Easterling, Oldham, Redwine, Thompson

NONPROFIT REPORTING REQUIREMENTS

SECTION 20.14.(a)  The N.C. Institute for Minority Economic Development, Inc., Land Loss Prevention Project, North Carolina Coalition of Farm and Rural Families, Inc., North Carolina Minority Support Center, North Carolina Community Development Initiative, Inc., North Carolina Association of Community Development Corporations, Inc., and Partnership for the Sounds, Inc., shall do the following:

(1)       By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2000-2001 program activities, objectives, and accomplishments;

b.         State fiscal year 2000-2001 itemized expenditures and fund sources;

c.         State fiscal year 2001-2002 planned activities, objectives, and accomplishments including actual results through December 31, 2001; and

d.         State fiscal year 2001-2002 estimated itemized expenditures and fund sources including actual  expenditures and fund sources through December 31, 2001;

(2)       By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2001-2002 program activities, objectives, and accomplishments;

b.         State fiscal year 2001-2002 itemized expenditures and fund sources;

c.         State fiscal year 2002-2003 planned activities, objectives, and accomplishments including actual results through December 31, 2002; and

d.         State fiscal year 2002-2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2002; and

(3)       Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.

SECTION 20.14.(b)  No funds appropriated under this act shall be released to a nonprofit organization listed in subsection (a) of this section until the organization has satisfied the reporting requirement for January 15, 2001.  Fourth quarter allotments shall not be released to any nonprofit organization that does not satisfy the reporting requirements for January 15, 2002, or January 15, 2003.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Hunter, Easterling, Oldham, Redwine, Thompson

RURAL ECONOMIC DEVELOPMENT CENTER

SECTION 20.15.(a)  Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of one million seven hundred eighty-eight thousand seven hundred forty-nine dollars ($1,788,749) for the 2001-2002 fiscal year and the sum of one million seven hundred eighty-eight thousand seven hundred forty-nine dollars ($1,788,749) for the 2002-2003 fiscal year shall be allocated as follows:

                                                                                   2001-2002 FY           2002-2003 FY

 

      Research and Demonstration Grants                    $444,000                     $444,000

         Technical Assistance and Center

         Administration of Research

         and Demonstration Grants                                    444,471                       444,471

      Center Administration, Oversight,

         and Other Programs                                              437,278                       437,278

      Administration of Clean Water/

         Natural Gas Critical Needs

         Bond Act of 1998                                                 199,722                       199,722

      Additional Administration of Supplemental

         Funding Program                                                   138,278                       138,278

      Administration of Capacity Building

         Assistance Program (1998 Bond Act)                125,000                       125,000.

SECTION 20.15.(b)  The Rural Economic Development Center, Inc., shall provide a report containing detailed budget, personnel, and salary information to the Office of State Budget and Management in the same manner as State departments and agencies in preparation for biennium budget requests.

SECTION 20.15.(c)  Not more than fifty percent (50%) of the interest earned on State funds appropriated to the Rural Economic Development Center, Inc., may be used by the Center for administrative purposes, including salaries and fringe benefits.

SECTION 20.15.(d)  For purposes of this section, the term "community development corporation" means a nonprofit corporation:

(1)       Chartered pursuant to Chapter 55A of the General Statutes;

(2)       Tax-exempt pursuant to section 501(c)(3) of the Internal Revenue Code of 1986;

(3)       Whose primary mission is to develop and improve low-income communities and neighborhoods through economic and related development;

(4)       Whose activities and decisions are initiated, managed, and controlled by the constituents of those local communities; and

(5)       Whose primary function is to act as deal-maker and packager of projects and activities that will increase their constituencies' opportunities to become owners, managers, and producers of small businesses, affordable housing, and jobs designed to produce positive cash flow and curb blight in the targeted community.

SECTION 20.15.(e)  Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of two million nine hundred two thousand dollars ($2,902,000) for the 2001-2002 fiscal year and the sum of two million nine hundred two thousand dollars ($2,902,000) for the 2002-2003 fiscal year shall be allocated as follows:

(1)       $1,124,000 in each fiscal year for community development grants to support development projects and activities within the State's minority communities. Any community development corporation as defined in this section is eligible to apply for funds. The Rural Economic Development Center, Inc., shall establish performance-based criteria for determining which community development corporation will receive a grant and the grant amount. The Rural Economic Development Center, Inc., shall allocate these funds as follows:

a.         $837,720 in each fiscal year for direct grants to the local community development corporations that have previously received State funds for this purpose to support operations and project activities;

b.         $236,280 in each fiscal year for direct grants to local community development corporations that have not previously received State funds; and

c.         $50,000 in each fiscal year to the Rural Economic Development Center, Inc., to be used to cover expenses in administering this section.

(2)       $234,000 in each fiscal year to the Microenterprise Loan Program to support the loan fund and operations of the Program; and

(3)       $1,344,000 in each fiscal year shall be used for a program to provide supplemental funding for matching requirements for projects and activities authorized under this subdivision. The Center shall allocate these funds as follows:

a.         $1,094,000 in each fiscal year to make grants to local governments and nonprofit corporations to provide funds necessary to match federal grants or other grants for:

1.         Necessary economic development projects and activities in economically distressed areas;

2.         Necessary water and sewer projects and activities in economically distressed communities to address health or environmental quality problems except that funds shall not be expended for the repair or replacement of low-pressure pipe wastewater systems. If a grant is awarded under this sub-subdivision, then the grant shall be matched on a dollar-for-dollar basis in the amount of the grant awarded; or

3.         Projects that demonstrate alternative water and waste management processes for local governments. Special consideration should be given to cost-effectiveness, efficacy, management efficiency, and the ability of the demonstration project to be replicated.

b.         $250,000 in each fiscal year to make grants to local governments and nonprofit corporations to provide funds necessary to match federal grants or other grants related to water, sewer, or business development projects.

(4)       $200,000 in each fiscal year for the Agricultural Advancement Consortium. These funds shall be placed in a reserve and allocated as follows:

a.         $75,000 in each fiscal year for operating expenses associated with the Consortium; and

b.         $125,000 in each fiscal year for research initiatives funded by the Consortium.

The Consortium shall facilitate discussions among interested parties and shall develop recommendations to improve the State's economic development through farming and agricultural interests.

The grant recipients in this subsection shall be selected on the basis of need.

SECTION 20.15.(f)  For the 2001-2002 fiscal year only, the Office of State Budget and Management shall reduce the funds appropriated in this act to the Rural Economic Development Center, Inc., by an amount of nine hundred ninety-nine thousand six hundred ninety-four dollars ($999,694).  The Center shall compensate for this reduction by using available cash balances from the Child Care Loan Fund in the amount of four hundred ninety-nine thousand six hundred ninety-four dollars ($499,694) and the amount of five hundred thousand dollars ($500,000) from other cash reserves on hand.

SECTION 20.15.(g)  The Rural Economic Development Center, Inc., shall:

(1)       By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2000-2001 program activities, objectives, and accomplishments;

b.         State fiscal year 2000-2001 itemized expenditures and fund sources;

c.         State fiscal year 2001-2002 planned activities, objectives, and accomplishments including actual results through December 31, 2001; and

d.         State fiscal year 2001-2002 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2001.

(2)       By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2001-2002 program activities, objectives, and accomplishments;

b.         State fiscal year 2001-2002 itemized expenditures and fund sources;

c.         State fiscal year 2002-2003 planned activities, objectives, and accomplishments including actual results through December 31, 2002; and

d.         State fiscal year 2002-2003 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2002.

(3)       Provide to the Fiscal Research Division a copy of each grant recipient's annual audited financial statement within 30 days of issuance of the statement.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

OPPORTUNITIES INDUSTRIALIZATION CENTER FUNDS

SECTION 20.16.(a)  Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of four hundred thousand dollars ($400,000) for the 2001-2002 fiscal year and the sum of four hundred thousand dollars ($400,000) for the 2002-2003 fiscal year shall be allocated as follows:

(1)       $100,000 in each fiscal year to the Opportunities Industrialization Center of Wilson, Inc., for its ongoing job training programs;

(2)       $100,000 in each fiscal year to the Opportunities Industrialization Center, Inc., in Rocky Mount, for its ongoing job training programs;

(3)       $100,000 in each fiscal year to the Opportunities Industrialization Centers Kinston and Lenoir County, North Carolina, Inc.; and

(4)       $100,000 in each fiscal year to the Opportunities Industrialization Center of Elizabeth City, Inc.

SECTION 20.16.(b)  For each of the Opportunities Industrialization Centers receiving funds pursuant to subsection (a) of this section, the Rural Economic Development Center, Inc., shall:

(1)       By January 15, 2002, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2000-2001 program activities, objectives, and accomplishments;

b.         State fiscal year 2000-2001 itemized expenditures and fund sources;

c.         State fiscal year 2001-2002 planned activities, objectives, and accomplishments, including actual results through December 31, 2001; and

d.         State fiscal year 2001-2002 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2001.

(2)       By January 15, 2003, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:

a.         State fiscal year 2001-2002 program activities, objectives, and accomplishments;

b.         State fiscal year 2001-2002 itemized expenditures and fund sources;

c.         State fiscal year 2002-2003 planned activities, objectives, and accomplishments, including actual results through December 31, 2002; and

d.         State fiscal year 2002-2003 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2002.

(3)       Notwithstanding G.S. 143-6.1(d), file annually with the State Auditor a financial statement in the form and on the schedule prescribed by the State Auditor. The financial statements must be audited in accordance with standards prescribed by the State Auditor to assure that State funds are used for the purposes provided by law.

(4)       Provide to the Fiscal Research Division a copy of the annual audited financial statement required in subdivision (3) of this subsection within 30 days of issuance of the statement.

SECTION 20.16.(c)  No funds appropriated under this act shall be released to an Opportunities Industrialization Center (hereinafter Center) listed in subsection (a) of this section unless the Center can demonstrate that there are no outstanding or proposed assessments or other collection actions against the Center for any State or federal taxes, including related penalties, interest, and fees.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

Transfer common follow-up evaluation from osbpm to esc

SECTION 20.17.(a)  G.S. 96-32 reads as rewritten:

"§ 96-32.  Common follow-up information management system created.

(a)       The Employment Security Commission of North Carolina shall develop, implement, and maintain a common follow-up information management system for tracking the employment status of current and former participants in State job training, education, and placement programs. The system shall provide for the automated collection, organization, dissemination, and analysis of data obtained from State-funded programs that provide job training and education and job placement services to program participants. In developing the system, the ESC shall ensure that data and information collected from State agencies is confidential, not open for general public inspection, and maintained and disseminated in a manner that protects the identity of individual persons from general public disclosure.

(b)       The ESC in consultation with the Office of State Budget, Planning, and Management shall adopt procedures and guidelines for the development and implementation of the CFS authorized under this section.

(c)       Based on data collected under the CFS, the Office of State Budget, Planning, and Management ESC shall evaluate the effectiveness of job training, education, and placement programs to determine if specific program goals and objectives are attained, to determine placement and completion rates for each program, and to make recommendations regarding the continuation of State funding for programs evaluated. The ESC shall provide to the Office of State Budget, Planning, and Management data collected under the CFS in a manner and with the frequency necessary for the Office of State Budget, Planning, and Management to conduct the evaluation required under this subsection. The ESC shall consult with the Office of State Budget, Planning, and Management to determine the most efficient and effective method for providing to the Office of State Budget, Planning, and Management data collected under the CFS. The Office of State Budget, Planning, and Management shall maintain the same levels of confidentiality with respect to CFS data received from the ESC as is required of the ESC under this Article."

SECTION 20.17.(b)  G.S. 96-35 reads as rewritten:

"§ 96-35.  Reports on common follow-up system activities.

(a)       The Employment Security Commission of North Carolina shall present annually by May 1 to the General Assembly and to the Governor a report of CFS activities for the preceding calendar year. The report shall include information on and evaluation of job training, education, and placement programs for which data was reported by State and local agencies subject to this Article. Evaluation of the programs shall be on the basis of fiscal year data.

(b)       The Office of State Budget, Planning, and Management ESC shall report to to the Governor and to the General Assembly upon the convening of each biennial session, its evaluation of and recommendations regarding job training, education, and placement programs for which data was provided to the CFS."

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

ESC TO EXPEND REED ACT FUNDS

SECTION 20.18. Of the funds credited to and held in this State's account in the Unemployment Trust Fund by the Secretary of the Treasury of the United States pursuant to and in accordance with section 903 of the Social Security Act, the Employment Security Commission of North Carolina may expend the sum of two million one hundred thirty-six thousand seven hundred forty-six dollars ($2,136,746) for the 2001-2002 fiscal year for unemployment insurance administration.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Insko, Easterling, Oldham, Redwine, Thompson

North Carolina Global Center Funds

SECTION 20.19.  Of the funds appropriated to the Office of State Budget and Management in Section 34.1 of Chapter 769 of the 1993 Session Laws for planning of the North Carolina Center for World Languages and Cultures, Inc., now known as the North Carolina Global Center (hereinafter Center), up to three hundred thousand dollars ($300,000) shall be used for general operating purposes of the Center.

 

Requested by:            Senators Martin of Pitt, Weinstein, Albertson, Hoyle, Plyler, Odom, Lee; Representatives Fox, Owens, Allen, Gulley, Smith, Easterling, Oldham, Redwine, Thompson

restore name of ABC COMPLEX

SECTION 20.20.  The sign designating the North Carolina ABC Commission Office & Warehouse Complex, which is located at 3322 Garner Road in Raleigh, shall be restored to its original designation of "The Marvin L. Speight, Jr. North Carolina ABC Commission Office & Warehouse Complex".

 

PART XXI.  DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

DHHS REGIONAL OFFICES

SECTION 21.1.(a)  The Department of Health and Human Services shall consolidate its regional, district, field, and satellite offices located throughout the State.  The Department shall implement these consolidations no later than June 30, 2002.  The Department shall provide the following information:

(1)       An inventory of all its regional, district, field, and satellite offices located throughout the State before the consolidation required in this section. This inventory shall include the purpose of the office (direct services or central location for field staff), the number of staff assigned to the office, the cost of operating the office, and information on whether the office is co-located or located near another regional, district, field, or satellite office;

(2)       An inventory of all its regional, district, field, and satellite offices located throughout the State after the consolidation required in this section is completed. This inventory shall include the purpose of the office (direct services or central location for field staff), the number of staff assigned to the office, the cost of operating the office, and information on whether the office is co-located or located near another regional, district, field, or satellite office;

(3)       A report on the anticipated impact of the consolidation required by this section on the delivery of services;

(4)       A report on the use of technology to comply with the consolidation required under this section to increase the number of staff working from their homes or other locations; and

(5)       A report on the anticipated cost savings, efficiencies in the use of State staff and resources, and improved delivery of services resulting from the consolidation required under this section.

SECTION 21.1.(b)  The Department of Health and Human Services shall conduct an inventory of all offices located in Wake County.  This inventory shall include the purpose of the office, the number of staff assigned to the office, the cost of operating the office, information on whether the office is co-located or located near another related office, and information on whether the office could be moved to another area of the State.

SECTION 21.1.(c)  The Department of Health and Human Services shall provide an interim report on the activities required under this section by January 1, 2002, and a final report by July 1, 2002.  The interim and final reports shall be provided to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

CENTRALIZE CRIMINAL RECORD CHECK FUNCTIONS

SECTION 21.2.  The Department of Health and Human Services shall centralize all activities throughout the Department relating to the coordination and processing of criminal record checks required by law.  The centralization shall include the transfer of positions, corresponding State appropriations, federal funds, and other funds. The Department shall report on the centralization of criminal record check activities to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than January 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

PRESCRIPTION DRUG ASSISTANCE PROGRAM MANAGEMENT

SECTION 21.3.(a)  The Department of Health and Human Services shall implement the following recommendations of the "North Carolina Medicaid Benefit Study", May 1, 2001, to improve the management of prescription drug assistance programs operated by the Department, including programs in the Divisions of Public Health, Mental Health, Developmental Disabilities, and Substance Abuse Services, Services for the Blind, and Vocational Rehabilitation:

(1)       Dispensing of generic drugs. Notwithstanding G.S. 90-85.27 through G.S. 90-85.31, under all prescription drug assistance programs operated by the Department of Health and Human Services, and except as otherwise provided in this subsection for atypical antipsychotic drugs and drugs listed in the narrow therapeutic drug index, 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". 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 subdivision, "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).

(2)       Limit the supplies of prescription drugs to 34-day supplies for some or all drugs.

Notwithstanding subdivision (1) of this subsection, 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 the 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.

SECTION 21.3.(b)  The Department shall consider other drug utilization management activities for all prescription drug assistance programs operated by the Department as follows:

(1)       Prior authorization program to manage high-cost name brand drugs.

(2)       Maximum allowable pricing.

(3)       Contracting with a pharmacy benefits manager to implement more extensive prospective drug utilization review.

SECTION 21.3.(c)  The Department shall report on the activities conducted under this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than January 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

TOLL-FREE PHONE LINE INVENTORY AND CONSOLIDATION

SECTION 21.5.(a)  The Department of Health and Human Services shall determine the feasibility of combining all Department-operated and contracted toll-free (1-8xx) phone lines to create efficiencies.  An inventory of all resource telephone lines throughout Divisions of the Department shall be conducted and an evaluation completed of potential savings in combining these phone lines. In conducting the inventory, the Department shall identify the following:

(1)       Title and purpose of the phone line.

(2)       Type of information provided to callers.

(3)       Budget of the operations.

(4)       Number of staff (phone agents, other).

(5)       Number of calls received annually to each phone line.

(6)       Contracts.

The Department shall project costs for the new combined phone line and prepare a comprehensive cost-benefit analysis on the new consolidated plan compared with current services.

SECTION 21.5.(b)  The Department shall submit a progress report on the feasibility study to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Information Technology, and the House of Representatives Appropriations Subcommittee on Information Technology no later than December 1, 2001, and a final report by April 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

COORDINATION OF ACCESS TO PHARMACEUTICAL COMPANY PRESCRIPTION DRUG PROGRAMS

SECTION 21.6.(a)  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, the sum of two hundred thousand dollars ($200,000) for the 2001-2002 fiscal year and the sum of two hundred thousand dollars ($200,000) for the 2002-2003 fiscal year shall be used to assist eligible individuals in obtaining prescription drugs at no cost or for a nominal fee through pharmaceutical company programs or initiatives. Coordination of access shall be provided through a central location that maintains documentation of an individual's eligibility provided by the individual and prescription orders from the individual's physician to facilitate the provision of no-cost or nominal cost drugs under the pharmaceutical company program. The coordination of access shall be implemented in a way that encourages physician, patient, and pharmacy participation by reducing time-consuming procedural requirements. The Department may contract with a private nonprofit organization to coordinate access as provided under this section.

SECTION 21.6.(b)  The coordination of access effort under this section shall be consistent with other prescription drug assistance programs throughout the Department, including the AIDS Drug Assistance Program and the Prescription Drug Assistance Program, in identifying program participants. 

SECTION 21.6.(c)  The Department shall work with pharmaceutical companies in obtaining access to company applications for assistance and making those applications available to the general public.  The Department shall ensure that pharmaceutical company programs are registered with the Department and shall obtain the application forms of each pharmaceutical program.

SECTION 21.6.(d)  The Department shall report on the implementation of this section on December 1, 2001, April 1, 2002, and October 1, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

ADULT CARE HOME REIMBURSEMENT RATES IMPLEMENTATION PLAN

SECTION 21.7.(a)  The Department of Health and Human Services shall consider the findings and recommendations in the March 1, 2001, performance audit report, "Adult Care Home Reimbursement Rates," conducted by the Office of the State Auditor.  The Department shall implement all of the following recommendations:

(1)       Identify alternative payment procedures that could have a more direct affect on quality of care, and continue current efforts to obtain a federal waiver to pay adult care homes directly for client services.

(2)       Designate a division within the Department responsible for detailed review of submitted reports.

(3)       Develop a plan to phase-in electronic filing of cost reports.

(4)       Require related party disclosure in cost reports and modify the audit procedures to assure that related party transactions are identified.

The Department shall report on the implementation of these recommendations 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 April 1, 2002. The Department may not implement an alternative payment procedure unless and until the procedure has been approved by the General Assembly.

SECTION 21.7.(b)  The Fiscal Research Division, through the Legislative Services Office, in consultation with the Department of Health and Human Services, may issue a Request For Proposal (RFP) for an independent consultant with extensive expertise in rate-setting for public and private entities to develop a new rate methodology for establishing reimbursements for adult care homes. The final report of the independent consultant shall be presented to the General Assembly not later than June 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

LONG-TERM CARE CONTINUUM OF CARE

SECTION 21.9.(a)   The Department of Health and Human Services shall, in cooperation with other appropriate State and local agencies and representatives of consumer and provider organizations, develop a system that provides a continuum of long-term care for elderly and disabled individuals and their families. The Department shall define the system of long-term care services to include:

(1)       A structure and means for screening, assessment, and care management across settings of care;

(2)       A process to determine outcome measures for care;

(3)       An integrated data system to track expenditures, consumer characteristics, and consumer outcomes;

(4)       Relationships between the Department and the State's universities to provide policy analysis and program evaluation support for the development of long-term care system reforms;

(5)       An implementation plan that addresses testing of models, reviewing existing models, evaluation of components, and steps needed to achieve development of a coordinated system; and

(6)       Provision for consumer, provider, and agency input into the system design and implementation development.

SECTION 21.9.(b)  Notwithstanding Section 11.7A(a) of S.L. 1999-237, as amended by Section 11.4(b) of S.L. 2000-67, if non-State funds from within the Department can be identified, the Department may, with the approval of the Office of State Budget and Management, proceed to:

(1)       Implement the initial phase of a comprehensive data system that tracks long-term care expenditures, services, consumer profiles, and consumer preferences; and

(2)       Develop a system of statewide long-term care services coordination and case management to minimize administrative costs, improve access to services, and minimize obstacles to the delivery of long-term care services to people in need.

SECTION 21.9.(c)  Not later than April 15, 2002, the Department shall submit a progress report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the North Carolina Study Commission on Aging, on the development of the system required under this section.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

RECODIFICATION OF ADMINISTRATIVE RULES

SECTION 21.10.  The Codifier of Rules may continue the process of reorganizing Titles 10 and 15A of the North Carolina Administrative Code to reflect the recent reorganization of the Department of Health and Human Services and the Department of Environment and Natural Resources.  The reorganization of the Code may include replacing Title 10 with a new Title 10A if desirable for clarity.  The Codifier of Rules may make changes in the text of the affected rules to reflect changes in organizational structure of the Department of Health and Human Services and the Department of Environment and Natural Resources.  So long as the changes in text do not change the substance of the rules, the reorganization by the Codifier is exempt from the requirements of Chapter 150B of the General Statutes and does not require the review or approval of the Rules Review Commission.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

TRANSFER OF CERTAIN FUNDS AUTHORIZED

SECTION 21.11.  Article 1 of Chapter 143 of the General Statutes is amended by adding the following new section to read:

"§ 143-23.3. Transfer of certain funds authorized.

In order to assure maximum utilization of funds in county departments of social services, county or district health agencies, and area mental health, developmental disabilities, and substance abuse services authorities, the Director of the Budget may transfer excess funds appropriated to a specific service, program, or fund, whether specified service in a block grant plan or General Fund appropriation, into another service, program, or fund for local services within the budget of the respective State agency."

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

PHYSICIAN SERVICES

SECTION 21.12.  With the approval of the Office of State Budget and Management, the Department of Health and Human Services may use funds appropriated in this act for across-the-board salary increases and performance pay to offset similar increases in the costs of contracting with private and independent universities for the provision of physician services to clients in facilities operated by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.  This offsetting shall be done in the same manner as is currently done with constituent institutions of The University of North Carolina.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Eliminate Joint Legislative Public Assistance Commission

SECTION 21.13.(a)  G.S. 120-225 is repealed.

SECTION 21.13.(b)  G.S. 108A-27.2(12) reads as rewritten:

"§ 108A-27.2.  General duties of the Department.

The Department shall have the following general duties with respect to the Work First Program:

(12)     Report to the Joint Legislative Public Assistance Commission and the members of the Senate Appropriations Committee on Health and Human Resources Services and the House of Representatives Appropriations Subcommittee on Health and Human Resources Services the counties which have requested Electing status,status; provide copies of the proposed Electing County Plans to the Joint Legislative Public Assistance Commission and the members of the Senate Appropriations Committee on Health and Human Resources Services and the House of Representatives Appropriations Subcommittee on Health and Human Resources Services; and make recommendations to the Joint Legislative Public Assistance Commission, the members of the Senate Appropriations Committee on Health and Human Resources Services and the House of Representatives Appropriations Subcommittee on Health and Human Resources, and the General AssemblyServices on which of the proposed Electing County Plans ensure compliance with federal and State laws, rules, and regulations and are consistent with the overall purposes and goals for the Work First Program; and".

SECTION 21.13.(c)  G.S. 108A-27.9(d) reads as rewritten:

"(d)      The section of the State Plan proposing the terms of the Work First Program in Electing Counties shall be based upon the aggregate of the Electing County Plans and shall include the following:

(1)       Allocations of federal and State funds for Electing Counties in the Work First Program including block grants to counties and the allocation of funding for administration not to exceed the federally established limitations on the use of federal TANF funds and the limits imposed under this Article;

(2)       Maintenance of effort and levels of State and county funding for Electing Counties in the Work First Program;

(3)       Federal eligibility requirements and a description of the eligibility requirements and benefit calculation in each Electing County; and

(4)       A description of the federal, State, and each Electing County's financial participation in the Work First Program.

The Department may modify the section in the State Plan regarding Electing Counties once a biennium or except as necessary to reflect any modifications made by an Electing County. Any changes to the section of the State Plan regarding Electing Counties shall be reported to the Joint Legislative Public Assistance Commission at the next meeting of the Commission following the changes and to the General Assembly during the next sessionSenate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division within one month following the changes."

SECTION 21.13.(d)  G.S. 108A-29(r) reads as rewritten:

"(r)      Each county's Job Service Employer Committee or Workforce Development Board shall continue the study of the working poor, titled "NC WORKS", in their respective counties and shall include the following in the study:

(1)       Determination of the extent to which current labor market participation enables individuals and families to earn the amount of disposable income necessary to meet their basic needs;

(2)       Determination of how many North Carolinians work and earn wages below one hundred fifty percent (150%) of the Federal Poverty Guideline and study trends in the size and demographic profiles of this underemployed group within the respective county;

(3)       Examination of job market factors that contribute to any changes in the composition and numbers of the working poor including, but not limited to, shifts from manufacturing to service, from full-time to part-time work, from permanent to temporary or their contingent employment;

(4)       Consideration and determination of the respective responsibilities of the public and private sectors in ensuring that working families and individuals have disposable income adequate to meet their basic needs;

(5)       Evaluation of the effectiveness of the unemployment insurance system in meeting the needs of low-wage workers when they become unemployed;

(6)       Examination of the efficacy of a State-earned income tax credit that would enable working families to meet the requirements of the basic needs budget;

(7)       Examination of the wages, benefits, and protections available to part-time and temporary workers, leased employees, independent contractors, and other contingent workers as compared to regular full-time workers;

(8)       Solicitation, receipt, and acceptance of grants or other funds from any person or entity and enter into agreements with respect to these grants or other funds regarding the undertaking of studies or plans necessary to carry out the purposes of the committee; and

(9)       A request of any necessary data from either public or private entities that relate to the needs of the committee or board.

Each committee or board shall prepare and submit a report on the finding for the county which it represents by May 1 of each year to the Joint Legislative Public Assistance Commission, the Senate Appropriations Committee on Health and Human Resources,Services, the House of Representatives Appropriations Subcommittee on Health and Human Resources,Services, the Senate Appropriations Committee on Natural and Economic Resources, and the House of Representatives Appropriations Subcommittee on Natural and Economic Resources."

SECTION 21.13.(e)  Unless specifically amended by another subsection of this section, the phrase "Joint Legislative Public Assistance Commission" is deleted and replaced by the phrase "Senate Appropriations Committee on Health and Human Services and the House of Representatives Appropriations Subcommittee on Health and Human Services" whenever it occurs in each of the following sections of the General Statutes:

G.S. 108A-27                  Authorization and description of Work First Program; Work First Program changes; designation of Electing and Standard Program Counties.

G.S. 108A-27.2               General Duties of the Department.

G.S. 108A-27.9               State Plan.

G.S. 108A-29                  First Stop Employment Assistance; priority for employment services.

G.S. 114-40                     Inspector General.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

ESTABLISH OFFICE OF POLICY AND PLANNING

SECTION 21.14.(a)  It is the intent of the General Assembly that the Department of Health and Human Services provide coordinated policy development and strategic planning for the State's health and human services systems.  The Department is directed to establish an Office of Policy and Planning within the Office of the Secretary from existing resources across the Department.  The Director of the Office of Policy and Planning shall report directly to the Secretary and shall have the following responsibilities:

(1)       Coordinate the development of departmental policies, plans, and rules, in consultation with the Divisions of the Department.

(2)       Development of a departmental process for the development and implementation of new policies, plans, and rules.

(3)       Development of a departmental process for the review of existing policies, plans, and rules to ensure that departmental policies, plans, and rules are relevant.

(4)       Coordination and review of all departmental policies before dissemination to ensure that all policies are well-coordinated within and across all programs.

(5)       Implementation of ongoing strategic planning that integrates budget, personnel, and resources with the mission and operational goals of the Department.

(6)       Review, disseminate, monitor, and evaluate best practice models.

SECTION 21.14.(b)  Under the direction of the Secretary of Health and Human Services, the Director of the Office of Policy and Planning shall have the authority to direct Divisions, offices, and programs within the Department to conduct periodic reviews of policies, plans, and rules and shall advise the Secretary when it is determined to be appropriate or necessary to modify, amend, and repeal departmental policies, plans, and rules.  All policy and management positions within the Office of Policy and Planning are exempt positions as that term is defined in G.S. 126-5.

SECTION 21.14.(c)  The Department shall report on the establishment of the Office of Policy and Planning to the members of the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division by January 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

County Health and Human Services Budget Guidance

SECTION 21.16.  G.S. 108A-88 reads as rewritten:

"§ 108A-88.  Determination of State and county financial participation.

Before February 15 of each year, the Secretary shall notify the county board of commissioners, the county manager, the director of social services services, and the director of public health of each county of the amount of State and federal moneys estimated to be available, as best can be determined, to that county for programs of public assistance, social services services, public health, and related administrative costs, as well as the percentage of county participation expected to be required for the budget for the succeeding fiscal year. In odd-numbered years, in making such notification, the Secretary shall notify the counties of any changes in funding levels, formulas, or programs relating to public assistance and public health proposed by the Governor to the General Assembly in the proposed budget and budget report submitted under the Executive Budget Act. Counties shall be notified of additional changes in the proposed budget of the Governor and the Advisory Budget Commission that are made by the General Assembly or the United States Congress subsequent to the February 15 estimates."

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

INFORMATION TECHNOLOGY PROJECT CONTRACTS

SECTION 21.17.(a)  Notwithstanding any other provision of law to the contrary, the Department of Health and Human Services may establish special time-limited positions in the Division of Information Research Management for an information technology project to maximize efficiencies in the preparation for and implementation of federal requirements of the medical records privacy standards under the Health Insurance Portability and Accountability Act of 1996 (HIPAA).  Positions established are not permanent positions, not subject to the State Personnel Act under G.S. 126-1.1, and not subject to the State salary schedule.

SECTION 21.17.(b)  Positions established pursuant to this section may commence no earlier than July 1, 2001, and shall expire June 30, 2003.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

USE OF SAVINGS REALIZED FROM ELIMINATION OF POSITIons

SECTION 21.18.  Savings in non-State funds realized from the elimination of positions in the Department of Health and Human Services shall be reallocated by the Department for direct services in the program where the position was eliminated, except in programs where State funds are used to draw down federal funds.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

INTERVENTION SERVICES UNIT

SECTION 21.18A.  There is created in the Department of Health and Human Services the Intervention Services Unit in the Office of the Secretary. The Unit shall be responsible for planning, research, monitoring, and data analysis for the purpose of enhancing coordination among programs and activities related to intervention services.  Services to be coordinated include mental health, developmental disabilities, and substance abuse services, social services, public health, preschool education services, and Smart Start services. The Unit shall work closely and collaboratively with the divisions through which such programs and activities operate.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

CENTRALIZED CONTRACTS SYSTEM

SECTION 21.18B.  The Department of Health and Human Services shall implement a centralized contracts system. The Department shall develop and implement consistent policies and procedures for the development and execution of contracts. The system shall include, where feasible and appropriate, the transfer of positions, corresponding State appropriations, federal funds, and other funds. The Department shall not enter into new contracts for database management until the centralized contracts system required under this section has been implemented and the Department has complied with the requirements of Section 21.93 of this act.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Family Support Services

SECTION 21.18C.  The Department of Health and Human Services shall coordinate all family support contracts and activities across divisions.  This coordination shall address duplication, cost efficiency, and effectiveness and shall ensure compliance with federal requirements while maximizing State and federal resources.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson, Wright

HIV/AIDS Prevention Initiative

SECTION 21.18D.(a)  It is the intention of the General Assembly to focus current resources and activities to strengthen and enhance prevention and intervention programs directed at the reduction of HIV/AIDS.  The Department shall coordinate efforts to enhance awareness, education, and outreach with the North Carolina AIDS Advisory Council, North Carolina Minority Health Advisory Council, representatives of faith communities, representatives of nonprofit agencies, and other State agencies.

SECTION 21.18D.(b)  The Department of Health and Human Services shall coordinate and ensure the implementation of developmentally appropriate education, awareness, and outreach campaigns to comply with subsection (a) in the following programs and services:

(1)       Division of Social Services programs and services:

a.         Domestic Violence Prevention and Awareness.

b.         Domestic Violence Services for Work First Families.

c.         After School Services for At Risk Children.

d.         Work First Boys/Girls Clubs.

(2)       Division of Mental Health, Developmental Disabilities, and Substance Abuse Services programs and services:

a.         Substance Abuse Services for Juveniles.

b.         Residential Substance Abuse Services for Women and Children.

(3)       Division of Public Health programs and services:

a.         Teen Pregnancy Prevention Activities.

b.         Out-of-Wedlock Births.

c.         School Health Program.

d.         High-Risk Maternity Clinic Services.

e.         Perinatal Education and Training.

f.          Public Information and Education.

g.         Technical Assistance to Local Health Departments.

(4)       Other divisions, services, and programs:

a.         Family Support Services.

b.         Family Resource Centers.

c.         Independent Living Services.

d.         Residential schools and facilities.

e.         Other programs, services, or contracts that provide education and awareness services to children and families.

SECTION 21.18D.(c)  Other State agencies, including the Department of Public Instruction, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Administration, shall ensure the incorporation of developmentally appropriate HIV/AIDS education, awareness, and outreach information into their programs.

SECTION 21.18D.(d)  The Department shall report on the implementation of this section on March 15, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

MEDICAID PROGRAM

SECTION 21.19.(a)  Funds appropriated in this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy. Funds appropriated for these services shall be expended in accordance with the following schedule of services and payment bases. All services and payments are subject to the language at the end of this subsection.

Services and payment bases:

(1)       Hospital-Inpatient - Payment for hospital inpatient services will be prescribed in the State Plan as established by the Department of Health and Human Services.

(2)       Hospital-Outpatient - Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Health and Human Services.

(3)       Nursing Facilities - Payment for nursing facility services will be prescribed in the State Plan as established by the Department of Health and Human Services. Nursing facilities providing services to Medicaid recipients who also qualify for Medicare must be enrolled in the Medicare program as a condition of participation in the Medicaid program. State facilities are not subject to the requirement to enroll in the Medicare program.

(4)       Intermediate Care Facilities for the Mentally Retarded - As prescribed in the State Plan as established by the Department of Health and Human Services.

(5)       Drugs - Drug costs as allowed by federal regulations plus a professional services fee per month excluding refills for the same drug or generic equivalent during the same month. Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills. Payments for drugs are subject to the provisions of subsection (h) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with the State Plan adopted by the Department of Health and Human Services consistent with federal reimbursement regulations. Payment of the professional services fee shall be made in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. The professional services fee shall be five dollars and sixty cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per prescription for brand name drugs. Adjustments to the professional services fee shall be established by the General Assembly.

(6)       Physicians, Chiropractors, Podiatrists, Optometrists, Dentists, Certified Nurse Midwife Services, Nurse Practitioners - Fee schedules as developed by the Department of Health and Human Services. Payments for dental services are subject to the provisions of subsection (g) of this section.

(7)       Community Alternative Program, EPSDT Screens - Payment to be made in accordance with rate schedule developed by the Department of Health and Human Services.

(8)       Home Health and Related Services, Private Duty Nursing, Clinic Services, Prepaid Health Plans, Durable Medical Equipment - Payment to be made according to reimbursement plans developed by the Department of Health and Human Services.

(9)       Medicare Buy-In - Social Security Administration premium.

(10)     Ambulance Services - Uniform fee schedules as developed by the Department of Health and Human Services. Public ambulance providers will be reimbursed at cost.

(11)     Hearing Aids - Actual cost plus a dispensing fee.

(12)     Rural Health Clinic Services - Provider-based, reasonable cost; nonprovider-based, single-cost reimbursement rate per clinic visit.

(13)     Family Planning - Negotiated rate for local health departments. For other providers, see specific services, for instance, hospitals, physicians.

(14)     Independent Laboratory and X-Ray Services - Uniform fee schedules as developed by the Department of Health and Human Services.

(15)     Optical Supplies - One hundred percent (100%) of reasonable wholesale cost of materials.

(16)     Ambulatory Surgical Centers - Payment as prescribed in the reimbursement plan established by the Department of Health and Human Services.

(17)     Medicare Crossover Claims - An amount up to the actual coinsurance or deductible or both, in accordance with the State Plan, as approved by the Department of Health and Human Services.

(18)     Physical Therapy and Speech Therapy - Services limited to EPSDT eligible children. Payments are to be made only to qualified providers at rates negotiated by the Department of Health and Human Services. Physical therapy (including occupational therapy) and speech therapy services are subject to prior approval and utilization review.

(19)     Personal Care Services - Payment in accordance with the State Plan approved by the Department of Health and Human Services.

(20)     Case Management Services - Reimbursement in accordance with the availability of funds to be transferred within the Department of Health and Human Services.

(21)     Hospice - Services may be provided in accordance with the State Plan developed by the Department of Health and Human Services.

(22)     Other Mental Health Services - Unless otherwise covered by this section, coverage is limited to:

a.         Services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) when provided in agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services, and reimbursement is made in accordance with a State Plan developed by the Department of Health and Human Services not to exceed the upper limits established in federal regulations, and

b.         For children eligible for EPSDT services:

1.         Licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, and nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, when Medicaid-eligible children are referred by the Carolina ACCESS primary care physician or the area mental health program, and

2.         Institutional providers of residential services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) for children and Psychiatric Residential Treatment Facility services that meet federal and State requirements as defined by the Department.

Notwithstanding G.S. 150B-121.1(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 paragraphs a. and b.2 of this subdivision shall be established by the Division of Medical Assistance.

(23)     Medically Necessary Prosthetics or Orthotics for EPSDT Eligible Children - Reimbursement in accordance with the State Plan approved by the Department of Health and Human Services.

(24)     Health Insurance Premiums - Payments to be made in accordance with the State Plan adopted by the Department of Health and Human Services consistent with federal regulations.

(25)     Medical Care/Other Remedial Care - Services not covered elsewhere in this section include related services in schools; health professional services provided outside the clinic setting to meet maternal and infant health goals; and services to meet federal EPSDT mandates. Services addressed by this paragraph are limited to those prescribed in the State Plan as established by the Department of Health and Human Services.

(26)     Pregnancy Related Services - Covered services for pregnant women shall include nutritional counseling, psychosocial counseling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses.

Services and payment bases may be changed with the approval of the Director of the Budget.

Reimbursement is available for up to 24 visits per recipient per year to any one or combination of the following: physicians, clinics, hospital outpatient, optometrists, chiropractors, and podiatrists. Prenatal services, all EPSDT children, emergency rooms, and mental health services subject to independent utilization review are exempt from the visit limitations contained in this paragraph. Exceptions may be authorized by the Department of Health and Human Services where the life of the patient would be threatened without such additional care. Any person who is determined by the Department to be exempt from the 24-visit limitation may also be exempt from the six-prescription limitation.

SECTION 21.19.(b)  Allocation of Nonfederal Cost of Medicaid. - The State shall pay eighty-five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section.

SECTION 21.19.(c)  Copayment for Medicaid Services. - The Department of Health and Human Services may establish copayment up to the maximum permitted by federal law and regulation.

SECTION 21.19.(d)  Medicaid and Work First Family Assistance, Income Eligibility Standards. - The maximum net family annual income eligibility standards for Medicaid and Work First Family Assistance and the Standard of Need for Work First Family Assistance shall be as follows:

 

                   Categorically Needy                                        Medically Needy

                             WFFA*

      Family                  Standard                             Families and

         Size                     of Need                         Children Income

                                                                                     Level            AA, AB, AD*

          1                           $4,344                                 $2,172                $2,900

          2                             5,664                                   2,832                   3,800

          3                             6,528                                   3,264                   4,400

          4                             7,128                                   3,564                   4,800

          5                             7,776                                   3,888                   5,200

          6                             8,376                                   4,188                   5,600

          7                             8,952                                   4,476                   6,000

          8                             9,256                                   4,680                   6,300

*Work First Family Assistance (WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).

 

The payment level for Work First Family Assistance shall be fifty percent (50%) of the standard of need.

These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.

SECTION 21.19.(e)  The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to all elderly, blind, and disabled people who have incomes equal to or less than one hundred percent (100%) of the federal poverty guidelines, as revised each April 1.

SECTION 21.19.(f)  ICF and ICF/MR Work Incentive Allowances. - The Department of Health and Human Services may provide an incentive allowance to Medicaid-eligible recipients of ICF and ICF/MR facilities who are regularly engaged in work activities as part of their developmental plan and for whom retention of additional income contributes to their achievement of independence.  The State funds required to match the federal funds that are required by these allowances shall be provided from savings within the Medicaid budget or from other unbudgeted funds available to the Department.  The incentive allowances may be as follows:

 

Monthly Net Wages                 Monthly Incentive Allowance

              $1.00 to $100.99                               Up to $50.00

         $101.00 to $200.99                                         $80.00

         $201.00 to $300.99                                       $130.00

         $301.00 and greater                                       $212.00.

SECTION 21.19.(g)  Dental Coverage Limits. - Dental services shall be provided on a restricted basis in accordance with rules adopted by the Department to implement this subsection.

SECTION 21.19.(h)  Dispensing of Generic Drugs. - Notwithstanding G.S. 90-85.27 through G.S. 90-85.31, or any other law to the contrary, under the Medical Assistance Program (Title XIX of the Social Security Act), and except as otherwise provided in this subsection for atypical antipsychotic drugs and drugs listed in the narrow therapeutic index, a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber has determined, at the time the drug is prescribed, that the brand name drug is medically necessary and has written on the prescription order the phrase "medically necessary". An initial prescription order for an atypical antipsychotic drug or a drug listed in the narrow therapeutic drug index that does not contain the phrase "medically necessary" shall be considered an order for the drug by its established or generic name, except that a pharmacy shall not substitute a generic or established name prescription drug for subsequent brand or trade name prescription orders of the same prescription drug without explicit oral or written approval of the prescriber given at the time the order is filled. Generic drugs shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand name drugs. As used in this subsection, "brand name" means the proprietary name the manufacturer places upon a drug product or on its container, label, or wrapping at the time of packaging; and "established name" has the same meaning as in section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act as amended, 21 U.S.C. § 352(e)(3).

SECTION 21.19.(i)  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 21.19.(j)  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 21.19.(k)  Cost-Containment Programs. - The Department of Health and Human Services, Division of Medical Assistance, may undertake cost containment programs in accordance with Section 3 of S.L. 2001-395, including contracting for services, preadmissions to hospitals and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.

SECTION 21.19.(l)  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 21.19.(m)  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 21.19.(n)  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)       Infants under the age of 1 with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.

(3)       Children aged 1 through 5 with family incomes equal to or less than one hundred thirty-three percent (133%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.

(4)       Children aged 6 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 21.19.(o)  Medicaid enrollment of categorically needy families with children shall be continuous for one year without regard to changes in income or assets.

SECTION 21.19.(p)  The Department shall disregard earned income for recipients who would otherwise lose Medicaid eligibility under section 1931 of Title XIX of the Social Security Act due to earnings. This disregard shall be applied for a maximum of 12 consecutive months.

SECTION 21.19.(q)  The Department of Health and Human Services shall submit a quarterly status report on expenditures for acute care and long-term care services to the Fiscal Research Division and to the Office of State Budget and Management. This report shall include an analysis of budgeted versus actual expenditures for eligibles by category and for long-term care beds. In addition, the Department shall revise the program's projected spending for the current fiscal year and the estimated spending for the subsequent fiscal year on a quarterly basis. The quarterly expenditure report and the revised forecast shall be forwarded to the Fiscal Research Division and to the Office of State Budget and Management no later than the third Thursday of the month following the end of each quarter.

SECTION 21.19.(r)  The Division of Medical Assistance, Department of Health and Human Services, may provide incentives to counties that successfully recover fraudulently spent Medicaid funds by sharing State savings with counties responsible for the recovery of the fraudulently spent funds.

SECTION 21.19.(s)  If first approved by the Office of State Budget and Management, the Division of Medical Assistance, Department of Health and Human Services, may use funds that are identified to support the cost of development and acquisition of equipment and software through contractual means to improve and enhance information systems that provide management information and claims processing.

SECTION 21.19.(t)  The Department of Health and Human Services may adopt temporary rules according to the procedures established in G.S. 150B-21.1 when it finds that these rules are necessary to maximize receipt of federal funds within existing State appropriations, to reduce Medicaid expenditures, and to reduce fraud and abuse. Prior to the filing of these temporary rules with the Office of Administrative Hearings, the Department shall consult with the Office of State Budget and Management on the possible fiscal impact of the temporary rule and its effect on State appropriations and local governments.

SECTION 21.19.(u)  The Department shall report to the Fiscal Research Division of the Legislative Services Office and to the House of Representatives Appropriations Subcommittee on Health and Human Services and the Senate Appropriations Committee on Health and Human Services or the Joint Legislative Health Care Oversight Committee on any change it anticipates making in the Medicaid program that impacts the type or level of service, reimbursement methods, or waivers, any of which require a change in the State Plan or other approval by the Centers for Medicare and Medicaid Services (CMS). The reports shall be provided at the same time they are submitted to CMS for approval.

SECTION 21.19.(v)  Upon approval of a demonstration waiver by the Centers for Medicare and Medicaid Services (CMS), the Department of Health and Human Services may provide Medicaid coverage for family planning services to men and women of child-bearing age with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty level. Coverage shall be contingent upon federal approval of the waiver and shall begin no earlier than January 1, 2001.

SECTION 21.19.(w)  The Department of Health and Human Services, Division of Medical Assistance, shall use the latest audited cost reporting data available when establishing Medicaid provider rates or when making changes to the reimbursement methodology.

SECTION 21.19.(x) The Department of Health and Human Services, Division of Medical Assistance, shall implement a new coding system for therapeutic mental health services as required by the Health Insurance Portability and Accountability Act of 1996.  In implementing the new coding system, the Division shall ensure that the new coding system does not discriminate between providers of therapeutic mental health services with similar qualifications and training.  In meeting the requirements of this subsection, the Division shall consult with the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and the professional licensing boards responsible for licensing the affected professionals.

SECTION 21.19.(y)  The Department of Health and Human Services may apply federal transfer of assets policies, as described in Title XIX, Section 1917(c) of the Social Security Act to real property excluded as "income producing" under Title XIX, Section 1902(r)(2) of the Social Security Act.  The transfer of assets policy shall apply only to an institutionalized individual or the individual's spouse as defined in Title XIX, Section 1917(c) of the Social Security Act.  This subsection becomes effective no earlier than October 1, 2001.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

ADOPTION OF MEDICAL COVERAGE POLICY UNDER STATE MEDICAID PROGRAM; MEDICAL COVERAGE POLICY EXEMPT FROM RULE MAKING UNDER THE APA

SECTION 21.20.(a)  In order to promote consistency among providers and to ensure that medical coverage criteria are uniformly applied to Medicaid recipients throughout the State, the Department of Health and Human Services shall adopt medical coverage policies for the State Medicaid Program that are consistent with national standards or Department-defined standards.  If the Department determines that application of a national standard would likely cause significant deterioration in the quality of or access to appropriate medical care, then the Department shall substitute for that national standard an evidence-based, best-practice standard that will not compromise quality of or access to appropriate medical care. The adoption of new or amended medical coverage policies under the State Medicaid Program are exempt from the rule-making requirements of Chapter 150B of the General Statutes.

SECTION 21.20.(b)  The Department shall develop, amend, and adopt  medical coverage policy in accordance with the following:

(1)       During the development of new medical coverage policy or amendment to existing medical coverage policy, consult with and seek the advice of the Physician Advisory Group of the North Carolina Medical Society and other organizations the Secretary deems appropriate.

(2)       At least 45 days prior to the adoption of new or amended medical coverage policy, the Department shall:

a.         Publish the proposed new or amended medical coverage policy on the Department's web site;

b.         Notify all Medicaid providers of the proposed, new, or amended policy; and

c.         Upon request, provide persons copies of the proposed medical coverage policy.

(3)       During the 45-day period immediately following publication of the proposed new or amended medical coverage policy, accept oral and written comments on the proposed new or amended policy.

(4)       If, following the comment period, the proposed new or amended medical coverage policy is modified, then the Department shall, at least 15 days prior to its adoption:

a.         Notify all Medicaid providers of the proposed policy;

b.         Upon request, provide persons notice of amendments to the proposed policy; and

c.         Accept additional oral or written comments during this 15-day period.

SECTION 21.20.(c)  G.S. 150B-1(d), as amended by S.L. 2001-299, reads as rewritten:

"(d)      Exemptions from Rule Making. - Article 2A of this Chapter does not apply to the following:

(1)       The Commission.

(2)       Repealed by Session Laws 2000-189, s. 14, effective July 1, 2000.

(3)       The North Carolina Hazardous Waste Management Commission in administering the provisions of G.S. 130B-13 and G.S. 130B-14.

(4)       The Department of Revenue, with respect to the notice and hearing requirements contained in Part 2 of Article 2A.

(5)       The North Carolina Global TransPark Authority with respect to the acquisition, construction, operation, or use, including fees or charges, of any portion of a cargo airport complex.

(6)       The Department of Correction, with respect to matters relating solely to persons in its custody or under its supervision, including prisoners, probationers, and parolees.

(7)       The North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan in administering the provisions of Parts 2 and 3 of Article 3 of Chapter 135 of the General Statutes.

(8)       The North Carolina Federal Tax Reform Allocation Committee, with respect to the adoption of the annual qualified allocation plan required by 26 U.S.C. § 42(m), and any agency designated by the Committee to the extent necessary to administer the annual qualified allocation plan.

(10)     The Department of Health and Human Services in adopting new or amending existing medical coverage policies under the State Medicaid Program."

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

COUNTY MEDICAID COST-SHARE

SECTION 21.21.(a)  Effective July 1, 2000, the county share of the cost of Medicaid services currently and previously provided by area mental health authorities shall be increased incrementally each fiscal year until the county share reaches fifteen percent (15%) of the nonfederal share by State fiscal year 2009-2010.

SECTION 21.21.(b)  Effective July 1, 2000, the county share of the cost of Medicaid Personal Care Services paid to adult care homes shall be decreased incrementally each fiscal year until the county share reaches fifteen percent (15%) of the nonfederal share by State fiscal year 2009-2010.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson, Nesbitt, Baddour

NC HEALTH CHOICE

SECTION 21.22.(a)  The total amount of State funds expended for the Health Insurance Program for Children (NC Health Choice) in the 2001-2002 fiscal year and the 2002-2003 fiscal year shall not exceed the amount of State funds appropriated to match federal funds for the Program for the 2001-2002 fiscal year and the 2002-2003 fiscal year.  The Department shall manage Program enrollment in a way that maximizes the number of children served within existing funds.

SECTION 21.22.(b)  G.S. 108A-70.18 reads as rewritten:

"§ 108A-70.18.  Definitions.

As used in this Part, unless the context clearly requires otherwise, the term:

(1)       'Comprehensive health coverage' means creditable health coverage as defined under Title XXI.

(2)       'Family income' has the same meaning as used in determining eligibility for the Medical Assistance Program.

(3)       'FPL' or 'federal poverty level' means the federal poverty guidelines established by the United States Department of Health and Human Services, as revised each April 1.

(4)       'Medical Assistance Program' means the State Medical Assistance Program established under Part 6 of Article 2 of Chapter 108A of the General Statutes.

(5)       'Program' means The Health Insurance Program for Children established in this Part.

(6)       'State Plan' means the State Child Health Plan for the State Children's Health Insurance Program established under Title XXI.

(7)       'Title XXI' means Title XXI of the Social Security Act, as added by Pub. L. 105-33, 111 Stat. 552, codified in scattered sections of 42 U.S.C. (1997).

(8)       'Uninsured' means the applicant for Program benefits is not covered under any private or employer-sponsored comprehensive health insurance plan on the date of enrollment. and was not covered under any private or employer-sponsored comprehensive health insurance plan for 60 days immediately preceding the date of application. The waiting periods required under this subdivision shall be waived if:

a.         The child has been enrolled in Medicaid and has lost Medicaid eligibility;

b.         The child has lost health care benefits due to cessation of a nonprofit organization program that provides health care benefits to low-income children;

c.         The child has lost employer-sponsored comprehensive health care coverage due to termination of employment, cessation by the employer of employer-sponsored health coverage, or cessation of the employer's business; or

d.         Health insurance benefits available to the family of a special needs child have been terminated due to a long-term disability or a substantial reduction in or limitation of lifetime medical benefits or benefit category. As used in this paragraph, "special needs child" has the definition applied in G.S. 108A-70.23(a)."

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

DISPOSITION OF DISPROPORTIONATE SHARE RECEIPT CHANGE

SECTION 21.23.(a)  Disproportionate share receipts reserved at the end of the 2001-2002 fiscal year shall be deposited with the Department of State Treasurer as nontax revenue for the 2001-2002 fiscal year.

SECTION 21.23.(b)  For the 2001-2002 fiscal year, as it receives funds associated with Disproportionate Share Payments from State hospitals, the Department of Health and Human Services, Division of Medical Assistance, shall deposit up to one hundred seven million dollars ($107,000,000) of these Disproportionate Share Payments to the Department of State Treasurer for deposit as nontax revenue.  Any Disproportionate Share Payments collected in excess of the one hundred seven million dollars ($107,000,000) shall be reserved by the State Treasurer for future appropriations.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Medicare Cost-Containment and GrowtH Reduction

SECTION 21.24.(a)  The Department of Health and Human Services, Division of Medical Assistance, shall contain Medicaid Program costs by reducing the rate of growth of the Medicaid Program, except for the rate of growth in the number of persons eligible for Medicaid.  The Department shall develop and implement a plan to reduce the rate of growth in total expenditures for payments for medical services for the fiscal year 2002-2003 to eight percent (8%) or less of the total expenditures for the 2001-2002 fiscal year, excluding the rate of growth associated with eligibles.

SECTION 21.24.(b)  In addition to findings and recommendations in the "North Carolina Medicaid Benefit Study", May 1, 2001, the Department of Health and Human Services may also consider the following actions to reduce the rate of growth in the Medicaid Program:

(1)       Changes in methods of reimbursement;

(2)       Changes in the method of determining or limiting inflation factors, or both;

(3)       Recalibration of existing methods of reimbursement; and

(4)       Contracting for services.

SECTION 21.24.(c)  As part of any efforts to contain Medicaid Program costs, the Department of Health and Human Services, Division of Medical Assistance, shall establish reimbursement rates that will allow efficient Medicaid providers to comply with certification requirements, licensure rules, or other mandated quality or safety standards.

SECTION 21.24.(d)  The Department shall report on its plans to reduce the rate of growth in the State Medicaid Program not later than December 1, 2001.  The Department shall submit the report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

SECTION 21.24.(e)  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.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

MEDICAID COST-CONTAINMENT ACTIVITIES

SECTION 21.25. The Department of Health and Human Services may use not more than three million dollars ($3,000,000) in each year of the 2001-2003 fiscal biennium in Medicaid funds budgeted for program services to support the cost of administrative activities when cost-effectiveness and savings are demonstrated. The funds shall be used to support activities that will contain the cost of the Medicaid Program, including contracting for services or hiring additional staff. Medicaid cost-containment activities may include prospective reimbursement methods, incentive-based reimbursement methods, service limits, prior authorization of services, periodic medical necessity reviews, revised medical necessity criteria, service provision in the least costly settings, and other cost-containment activities. Funds may be expended under this section only after the Office of State Budget and Management has approved a proposal for the expenditure submitted by the Department. Proposals for expenditure of funds under this section shall include the cost of implementing the cost-containment activity and documentation of the amount of savings expected to be realized from the cost-containment activity. The Department shall provide a copy of proposals for expenditures under this section to the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

MEDICAID PROGRAM MANAGEMENT

SECTION 21.26.(a)  The Department of Health and Human Services shall consider the findings and recommendations in the "North Carolina Medicaid Benefit Study", May 1, 2001, and shall target the following in considering whether and to what extent to implement recommendations:

(1)       Reduction in the fragmentation in the medical benefit policy-making process.

(2)       Improvement in the use of data and medical literature in the decision-making process.

(3)       Improvement in the coordination of care and utilization review process.

(4)       Strengthening of program integrity controls.

SECTION 21.26.(b)  The Department shall implement a pharmacy management plan considering the recommendations of the "North Carolina Medicaid Benefit Study" to achieve anticipated cost savings. The pharmacy management plan may include the following activities:

(1)       Establishing a prior authorization program to manage utilization of high-cost, brand name drugs. In determining drugs to be included in the prior authorization program, the Department shall consider whether inclusion of these drugs is likely to:

a.         Increase utilization of more expensive services;

b.         Reduce quality of treatment;

c.         Result in a lower level of compliance with appropriate drug therapy; and

d.         Have a differential impact upon racial and ethnic minorities and the elderly.

The Department shall conduct a review at least annually of the drugs included in the prior authorization program to determine whether any of the factors listed in this subdivision  or other factors with similar results have occurred.

(2)       Limiting prescription drugs to a 34-day supply for some or all drugs.

(3)       Developing physician prescribing practice profiles and other educational tools to enable physicians to better manage their prescriptions.

(4)       Establishing therapeutic limits based on appropriate dosage or usage standards.

(5)       Encouraging use of generic drugs.

(6)       Using maximum allowable pricing.

(7)       Contracting with a pharmacy benefits manager to implement more extensive drug utilization review.

(8)       Studying the impact of eliminating the six prescription drug monthly limit combined with a more rigorous prior authorization program to ensure cost decisions are made based on evidence-based clinical guidelines.

(9)       Expanding disease management initiatives.

(10)     Working with ACCESS physicians to develop and implement drug utilization management initiatives.

(11)     If cost-effective, expanding Medicaid drug coverage to include selected over-the-counter medications.

SECTION 21.26.(c)  The Department shall report on all of the activities conducted under this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than January 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Kerr, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

CAROLINA ACCESS PROGRAM IMPROVEMENTS

SECTION 21.27.  The Department of Health and Human Services shall improve efficiencies and effectiveness in the Carolina ACCESS program by redesigning program operations to reflect the program goals of the ACCESS II and ACCESS III programs. Strategies for improving efficiencies and effectiveness may include such activities as:

(1)       Accelerating conversion of ACCESS I to ACCESS II and III.

(2)       Establishing cost-reduction targets for ACCESS II and III partnerships.

(3)       Considering reimbursement mechanisms that will enable providers to share in the savings realized by exceeding cost-reduction targets.

(4)       Enhancing automatic linkages between patients and their primary care providers during Medicaid eligibility determination.

(5)       Improving the referral process to prevent abuse or inappropriate use of primary care provider's authorization number.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

STUDY OPTIONAL SERVICES UNDER MEDICAID PROGRAM

SECTION 21.28.(a)  The Department of Health and Human Services shall study all of the optional services provided under the State Medical Assistance Program. In conducting the study, the Department shall consider the analysis and recommendations of the "North Carolina Medicaid Benefit Study", May 1, 2001, and shall conduct an analysis of each optional service.  The analysis shall include consideration of cost containment achieved by reduction in or elimination of the service, and the impact the reduction or elimination will have on client needs and other services.

SECTION 21.28.(b)  The Department shall report its findings and recommendations to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than April 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

TBI MEDICAID WAIVER

SECTION 21.28A.  The Department of Health and Human Services shall develop and seek approval from the Center for Medicare and Medicaid Services (CMS) for a Home and Community-Based Medicaid Waiver for individuals with traumatic brain injury.  If the waiver is granted, the Department shall not implement the waiver unless the implementation is approved and enacted by the General Assembly and funds are appropriated for that purpose.  The Department shall report the status of the waiver to the House of Representatives Appropriations Subcommittee on Health and Human Services and the Senate Appropriations Committee on Health and Human Services on December 1, 2001, and March 1, 2002. The report shall include the amount of funds needed to implement the waiver.  Nothing in this section obligates the General Assembly to appropriate funds to implement a Medicaid waiver granted by the federal government for the purposes stated in this section.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

SPECIAL ASSISTANCE DEMONSTRATION PROJECT

SECTION 21.29.(a)  Section 11.21 of S.L. 1999-237, as amended by Section 11.13 of S.L. 2000-67, reads as rewritten:

"Section 11.21. (a)  The Department of Health and Human Services may use funds from the existing State/County Special Assistance for Adults budget to provide Special Assistance payments to eligible individuals in in-home living arrangements. These payments may be made for up to 400 individuals. These payments may be made for up to a two-year period beginning July 1, 2000, and ending June 30, 2002. An individual enrolled in the Special Assistance demonstration project on June 30, 2002, who remains continuously eligible may receive payments through June 30, 2003. The standard monthly payment to individuals enrolled in the Special Assistance demonstration project shall be fifty percent (50%) of the monthly payment the individual would receive if the individual resided in an adult care home and qualified for Special Assistance, except if a lesser payment amount is appropriate for the individual as determined by the local case manager. The Department shall implement Special Assistance in-home eligibility policies and procedures to assure that  demonstration project participants are those individuals who need and, but for the demonstration project, would seek placement in an adult care home facility. To the maximum extent possible, the Department shall consider geographic balance in the dispersion of payments to individuals across the State. The Department shall make an interim report to the cochairs of the House of Representatives Appropriations Committee, the cochairs of the House of Representatives Appropriations Subcommittee on Health and Human Services and the cochairs of the Senate Appropriations Committee, the Chair of the Senate Appropriations Committee on Human Resources by June 30, 2001, and a final report by January 1, 2003. This report shall include the following information:

(1)       A description of cost savings that could occur by allowing individuals eligible for State/County Special Assistance the option of remaining in the home.

(2)       Which activities of daily living or other need criteria are reliable indicators for identifying individuals with the greatest need for income supplements for in-home living arrangements.

(3)       How much case management is needed and which types of individuals are most in need of case management.

(4)       The geographic location of individuals receiving payments under this section.

(5)       A description of the services purchased with these payments.

(6)       A description of the income levels of individuals who receive payments under this section and the impact on the Medicaid program.

(7)       Findings and recommendations as to the feasibility of continuing or expanding the demonstration program.

(8)       The level and quantity of services (including personal care services) provided to the demonstration project participants compared to the level and quantity of services for residents in adult care homes.

(9)       A fiscal analysis and programmatic results of increasing the demonstration project participant's monthly assistance payment to fifty percent (50%) of the Special Assistance monthly payment.

Section 11.21.(b). The Department shall incorporate data collection tools designed to compare quality of life among institutionalized vs. noninstitutionalized populations (i.e. an individual's perception of his or her own health and well-being, years of healthy life, and activity limitations). To the extent national standards are available, the Department shall utilize those standards.

Section 11.21.(c). The Department shall expand its report of the Demonstration Program in order to fully assess the success of the pilot. The Department shall contract with an independent consultant to develop an evaluation design that ensures that the evaluation includes an assessment of the impact of the Program on the economic security, health, and well-being of the participants."

SECTION 21.29.(b)  The Department of Health and Human Services shall apply for a Section 1115 Medicaid Waiver to provide medical assistance to individuals living in their own home who are receiving supplemental State/County special assistance payments on a pilot basis rather than statewide. Individuals eligible for supplemental payments under the waiver shall be those individuals whose income exceeds one hundred percent (100%) of the federal poverty level and who would otherwise qualify for State/County Special Assistance as a resident of an adult care home. The waiver shall be designed to enable eligible recipients to remain at home, to receive the same payment amount as adult care home residents receiving State/County Special Assistance, and to qualify for Medicaid.  If the waiver is granted, the Department shall not implement the waiver unless the implementation is approved and enacted by the General Assembly and funds are appropriated for that purpose. The Department shall report the status of the waiver to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services on December 1, 2001, and March 1, 2002.  The report shall include the amount of funds needed to implement the waiver.  Nothing in this section obligates the General Assembly to appropriate funds to implement a Medicaid waiver granted by the federal government for the purposes stated in this section.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

SENIOR CENTER OUTREACH

SECTION 21.30.(a)  Funds appropriated to the Department of Health and Human Services, Division of Aging, for the 2001-2003 fiscal biennium shall be used by the Division of Aging to enhance senior center programs as follows:

(1)       To expand the outreach capacity of senior centers to reach unserved or underserved areas; or

(2)       To provide start-up funds for new senior centers.

All of these funds shall be allocated by October 1 of each fiscal year.

SECTION 21.30.(b) Prior to funds being allocated pursuant to this section for start-up funds for a new senior center, the board of commissioners of the county in which the new center will be located shall:

(1)       Formally endorse the need for a center;

(2)       Formally agree on the sponsoring agency for the center; and

(3)       Make a formal commitment to use local funds to support the ongoing operation of the center.

SECTION 21.30.(c)  State funding shall not exceed ninety percent (90%) of reimbursable costs.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

FUNDS FOR ALZHEIMER'S ASSOCIATION CHAPTERS IN NORTH CAROLINA

SECTION 21.31.  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Aging, the sum of one hundred fifty thousand dollars ($150,000) for the 2001-2002 fiscal year and the sum of one hundred fifty thousand dollars ($150,000) for the 2002-2003 fiscal year shall be allocated as follows:

(1)       $75,000 in each fiscal year for the Western Carolina Alzheimer's Chapter; and

(2)       $75,000 in each fiscal year for the Eastern NC Alzheimer's Chapter.

Before funds may be allocated to any chapter under this section, the Chapter shall submit to the Division of Aging, for its approval, a plan for the use of the funds.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

AREA AGENCIES ON AGING COST SAVINGS STUDY; REDUCTION IN NUMBER OF AGENCIES; FUNDS

SECTION 21.32.(a)  The Department of Health and Human Services shall conduct a study to determine cost savings to be realized and increased efficiencies to be gained by reducing the number of Area Agencies on Aging.  In conducting the study, the Department shall collect data to determine the amount of the reduction in administrative costs, direct costs, and indirect costs, and shall calculate the reduction based on maintaining the amount and quality of services provided. The Department shall do a cost-benefit analysis for the reduction in the number of agencies. The Department shall report the results of its study to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than March 1, 2002.

SECTION 21.32.(b)  Of the funds appropriated in this act to the Department of Health and Human Services, the sum of seven hundred thousand dollars ($700,000) for the 2001-2002 fiscal year shall be allocated equally among each of the Area Agencies on Aging.  These funds shall be used for planning, coordination, and operational activities that enhance each agency's ability to provide services, information, and education to consumers, and to better meet the data and technical assistance needs of providers, local planning committees, and local governments.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

DIVISION OF AGING CONSOLIDATION OF SECTIONS

SECTION 21.33.  The Department of Health and Human Services, Division of Aging, shall reduce layers of management and streamline operations by consolidating the Planning and Information and the Budget and Information sections. The Division shall transfer positions, corresponding State appropriations, federal funds, and any other relevant funds.  The Department shall allocate savings in non-State funds realized from the reduction in positions to direct services such as Ombudsman services, home delivered meals, and personal care services.  In allocating these funds, the Department shall give priority to those direct services for which there are clients waiting for services.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

ADULT CARE HOME RESIDENT ASSESSMENT SERVICES

SECTION 21.35.  Funds appropriated in this act to the Department of Health and Human Services, Division of Social Services, for adult care home positions in the Department and in county departments of social services shall be used for personnel trained in the medical and social needs of older adults and disabled persons in adult care homes to evaluate individuals requesting State/County Special Assistance to pay for care in adult care homes.  One of the functions of these personnel shall be to develop and collect data on the appropriate level of care and placement in the long-term care system, including identifying individuals who pose a risk to other residents and who may need further mental health assessment and treatment.  These personnel shall also provide technical assistance to adult care homes on how to conduct functional assessments and develop care plans and shall assist in monitoring the Special Assistance Demonstration Project.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

QUALITY CRITERIA FOR LONG-TERM CARE

SECTION 21.36.  The Department of Health and Human Services, in conjunction with the North Carolina Institute of Medicine, shall continue a special work group to develop criterion-based indicators for the monitoring of quality of care in North Carolina nursing homes, adult care homes, assisted living facilities, and home health care programs.  The Institute of Medicine and the Department of Health and Human Services shall work together to implement these criteria for the monitoring of long-term care in the State and pursue options for the use of these criteria in lieu of current HCFA-mandated standards for surveying North Carolina nursing homes under the federal Medicaid and Medicare programs.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Limitations on State Abortion Fund

SECTION 21.38.  The limitations on funding of the performance of abortion established in Section 23.27 of Chapter 324 of the 1995 Session Laws, as amended by Section 23.8A of Chapter 507 of the 1995 Session Laws, apply to the 2001-2002 and 2002-2003 fiscal years.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

SPECIAL CHILDREN ADOPTION FUND

SECTION 21.40.(a)  Of the funds appropriated to the Department of Health and Human Services in this act, the sum of one million one hundred thousand dollars ($1,100,000) shall be used to support the Special Children Adoption Fund for each year of the 2001-2003 fiscal biennium.  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.  No local match shall be required as a condition for receipt of these funds.  In accordance with State rules for allowable costs, the Special Children Adoption Fund may be used for post-adoption services for families whose incomes exceed two hundred percent (200%) of the federal poverty level.

SECTION 21.40.(b)  Of the total funds appropriated for the Special Children Adoption Fund, each year one million dollars ($1,000,000) shall be reserved for payment to participating private adoption agencies.  If the funds reserved in this subsection for payments to private adoption agencies have not been spent on or before March 31, 2002, the Division of Social Services may reallocate those funds, in accordance with this section, to other participating adoption agencies.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Foster Care and adoption Assistance Payments

SECTION 21.41.(a)  The maximum rates for State participation in the foster care assistance program are established on a graduated scale as follows:

(1)       $315.00 per child per month for children aged birth through 5;

(2)       $365.00 per child per month for children aged 6 through 12; and

(3)       $415.00 per child per month for children aged 13 through 18.

Of these amounts, fifteen dollars ($15.00) is a special needs allowance for the child.

SECTION 21.41.(b)  The maximum rates for State participation in the adoption assistance program are established on a graduated scale as follows:

(1)       $315.00 per child per month for children aged birth through 5;

(2)       $365.00 per child per month for children aged 6 through 12; and

(3)       $415.00 per child per month for children aged 13 through 18.

SECTION 21.41.(c)  In addition to providing board payments to foster and adoptive families of HIV-infected children, as prescribed in Section 23.28 of Chapter 324 of the 1995 Session Laws, any additional funds remaining that were appropriated for this purpose shall be used to provide medical training in avoiding HIV transmission in the home.

SECTION 21.41.(d)  The maximum rates for State participation in HIV foster care and adoption assistance are established on a graduated scale as follows:

(1)       $800.00 per month per child with indeterminate HIV status;

(2)       $1,000 per month per child confirmed HIV-infected, asymptomatic;

(3)       $1,200 per month per child confirmed HIV-infected, symptomatic; and

(4)       $1,600 per month per child terminally ill with complex care needs.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Special needs Adoptions incentive fund

SECTION 21.42.(a)  There is created a Special Needs Adoptions Incentive Fund to provide financial assistance to facilitate the adoption of certain children residing in licensed foster care homes, effective January 1, 2001.  These funds shall be used to remove financial barriers to the adoption of these children and shall be available to foster care families who adopt children with special needs as defined by the Social Services Commission.  These funds shall be matched by county funds.

SECTION 21.42.(b)  This program shall not constitute an entitlement and is subject to the availability of funds.

SECTION 21.42.(c)  The Social Services Commission shall adopt rules to implement the provisions of this section.

SECTION 21.42.(d)  The Department of Health and Human Services shall report on the use of these funds no later than April 1, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

State/County Special Assistance

SECTION 21.44.(a)  The eligibility of Special Assistance recipients residing in adult care homes on August 1, 1995, shall not be affected by an income reduction in the Special Assistance eligibility criteria resulting from adoption of the Rate Setting Methodology Report and Related Services, providing these recipients are otherwise eligible.  The maximum monthly rate for these residents in adult care home facilities shall be one thousand two hundred thirty-one dollars ($1,231) per month per resident.

SECTION 21.44.(b)  The maximum monthly rate for residents in adult care home facilities shall be one thousand sixty-two dollars ($1,062) per month per resident through September 30, 2001.

SECTION 21.44.(c)   Effective October 1, 2001, the maximum monthly rate for residents in adult care home facilities shall be one thousand ninety-one dollars ($1,091) per month per resident.

SECTION 21.44.(d)  Effective October 1, 2002, the maximum monthly rate for residents in adult care home facilities shall be one thousand one hundred twenty dollars ($1,120) per month per resident.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

STATE MATERNITY HOME FUND

SECTION 21.45.  The Divisions of Social Services and Public Health in the Department of Health and Human Services, in consultation with local departments of social services, health departments, and other health and human services programs such as faith-based organizations and domestic violence programs, shall assess alternative local resources available to women receiving services through the State Maternity Home Fund.  The Department shall determine the services that are provided by each of the maternity homes through the State Maternity Home Fund and those services that are otherwise available, and shall provide a cost comparison of the services. Not later than April 1, 2002, the Department of Health and Human Services shall report to the Senate Appropriations Committee on Health and Human Services and the House of Representatives Appropriations Subcommittee on Health and Human Services on the implementation of this section.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Child Welfare System Pilots

SECTION 21.46.(a)  The Department of Health and Human Services, Division of Social Services, shall develop a plan, working with local departments of social services, to implement an alternative response system of child protection in no fewer than two and no more than 10 demonstration areas in this State.  The plan should provide for the pilots to implement an alternative response system in which local departments of social services utilize family assessment tools and family support principles when responding to selected reports of suspected child neglect.

SECTION 21.46.(b)  The Department of Health and Human Services shall develop data collection processes that would enable the General Assembly to assess the impact of these pilots on the following:

(1)       Child safety.

(2)       Timeliness of response.

(3)       Timeliness of service.

(4)       Coordination of local human services.

(5)       Cost-effectiveness.

(6)       Any other related issues.

SECTION 21.46.(c)  The Department of Health and Human Services may proceed to implement this pilot program if non-State funds are identified for this purpose.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

state adult day care fund

SECTION 21.47.  The Department of Health and Human Services, Division of Aging, shall implement changes in its methodology currently used for allocating slots. The new allocation shall be implemented January 1, 2002, and shall ensure the Fund will serve new clients. Not later than January 1, 2002, the Department of Health and Human Services, Division of Aging, 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 the new allocation methodology. The report shall include all of the changes made in the new allocation and an estimate of the number of new clients served.  The allocation of all slots paid for with State Adult Day Care Funds shall be distributed equitably among service providers and shall eliminate the funding of unused slots.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Family Resource Centers

SECTION 21.48.(a)  The Department of Health and Human Services shall evaluate the use of all State and federal funds allocated to Family Resource Centers that primarily serve families with minor children.  The evaluation shall incorporate data collected from these Centers and shall assess the effectiveness of each program in achieving established program goals including the following:

(1)       Enhancing children's development and ability to attain academic and social success.

(2)       Promoting successful transition from early childhood education programs and child care to public schools.

(3)       Assisting families in achieving economic independence and self-sufficiency.

(4)       Mobilizing public and private community resources to help children and families in need.

(5)       Ensuring that plans are designed and implemented to provide families with services in a holistic family centered manner.

SECTION 21.48.(b)  The Department shall establish performance measurement protocol, based on national standards or best practice models, to determine the effectiveness of services provided by all family resource centers specified in subsection (a) of this section.

SECTION 21.48.(c)  Unless inconsistent with federal law, the Department shall ensure that all programs have similar core services and the same goals while eliminating duplication of effort at the local level.  The Department shall redirect the funds for Family Resource Centers to focus on those core services that have a direct impact on strengthening family support.

SECTION 21.48.(d)  In determining the allocation of funding, the Department shall ensure that Family Resource Centers have demonstrated that they have collaborative arrangements with other public and private agencies that have similar purposes that delineate specific roles and responsibilities to ensure effectiveness and efficiency in the operation of Family Resource Centers. 

SECTION 21.48.(e)  The Department shall report on activities under this section.  This report is due 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 May 1, 2002.

SECTION 21.48.(f)  G.S. 143B-152.15(b) reads as rewritten:

"(b)      The Department shall report to the General Assembly and the Joint Legislative Commission on Governmental Operations by May 15, 1994, on its progress in developing the evaluation system and in developing and implementing the program. It shall report prior to February 1, 1995, on the evaluation system developed by the Department and on program implementation. The Department shall present an annual report on October 1, 1995, and annually thereafter to the General Assembly and to the Joint Legislative Commission on Governmental Operations on the implementation of the program  report no later than December 1 of each year 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 program and the results of the program evaluation."

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Reorganization of Division of Social Services

SECTION 21.49.  The Department of Health and Human Services, Division of Social Services shall reduce layers of management and streamline operations in accordance with the following:

(1)       Consolidate the Resource and Information Management Section and Budget Operations Section including the elimination of one section chief position. The Division of Social Services shall further consolidate to address low staff-to-supervisor ratios. All positions and corresponding State appropriations, federal funds, and other funds in these two sections shall be consolidated.

(2)       Consolidate the Program Integrity, Economic Independence Services, and Local Support Branches into one branch within the Economic Independence Section. The Division of Social Services shall further consolidate to address low staff-to-supervisor ratios. All positions and corresponding State appropriations, federal funds, and other funds shall be consolidated.

(3)       Eliminate the Local Support Section including all positions and corresponding State appropriations, federal funds, and other funds.

(4)       Eliminate the Program Development Branch including the corresponding position and State appropriations, federal funds, and other funds.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Intensive Family Preservation Services Funding and performance enhancements

SECTION 21.50.(a)  The Department of Health and Human Services shall review the Intensive Family Preservation Services Program (IFPS) to enhance and implement initiatives which focus on increasing the sustainability and effectiveness of the Program.

SECTION 21.50.(b)  Notwithstanding the provisions of G.S. 143B-150.6, the Program shall provide intensive services to children and families in cases of abuse, neglect, and dependency where a child is at imminent risk of removal from the home and to children and families in cases of abuse where a child is not at imminent risk of removal.  The Program shall be developed and implemented Statewide on a regional basis.  The revised IFPS shall ensure the application of standardized assessment criteria for determining imminent risk and clear criteria for determining out-of-home placement.

SECTION 21.50.(c)  The Department of Health and Human Services shall require that any program or entity that receives State, federal, or other funding for the purpose of Intensive Family Preservation Services shall provide information and data that allows for:

(1)       An established follow-up system with a minimum of six months of follow-up services.

(2)       Detailed information on the specific interventions applied including utilization indicators and performance measurement.

(3)       Cost-benefit data.

(4)       Data on long-term benefits associated with Intensive Family Preservation Services. This data shall be obtained by tracking families through the intervention process.

(5)       The number of families remaining intact and the associated interventions while in IFPS and 12 months thereafter.

(6)       The number and percentage by race of children who received Intensive Family Preservation Services compared to the ratio of their distribution in the general population involved with Child Protective Services.

SECTION 21.50.(d)  The Department shall establish performance-based funding protocol and shall only provide funding to those programs and entities  providing the required information specified in subsection (c) of this section.  The amount of funding shall be based on the individual performance of each program.

SECTION 21.50.(e)  The Department of Health and Human Services shall prepare an interim 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 implementation of these changes by April 1, 2002, and an annual report on the Program not later than December 1 of each year of the biennium.  The Department shall include the following in the annual reports due on December 1:

(1)       The number of children who remain unified with their families for one, two, and three years after receiving services under the Program.

(2)       A description of the Program, including the progress of the local programs during the preceding year, along with recommendations for improvement.

SECTION 21.50.(f)  G.S. 143B-150.5 reads as rewritten:

"§ 143B-150.5.  Family Preservation Services Program established; purpose.

(a)       There is established the Family Preservation Services Program of the Department of Health and Human Services. The Program shall be phased in over a four-year period, commencing with fiscal year 1991-92. By the end of the four-year phase-in period, and toTo the extent that funds are made available, locally-based family preservation services shall be available to all 100 counties. The Secretary of the Department of Health and Human Services shall be responsible for the development and implementation of the Family Preservation Services Program as established in this Part. In developing the Program the Secretary shall consider the advice and recommendations of the Advisory Committee on Family-Centered Services.

(b)       The purpose of the Family Preservation Services Program is, where feasible and in the best interests of the child and the family, to keep the family unit intact by providing intensive family-centered services that help create, within the family, positive, long-term changes in the home environment.

(c)       Family preservation services shall be financed in part through grants to local agencies for the development and implementation of locally-based family preservation services. Grants to local agencies shall be made in accordance with the provisions of G.S. 143B-150.6.

(d)       The Secretary of the Department of Health and Human Services shall ensure the cooperation of the Division of Social Services, the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Division of Medical Assistance, in carrying out the provisions of this Part."

SECTION 21.50.(g)  G.S. 143B-150.6(d) reads as rewritten:

"(d)      Grants for local projects:  The Secretary of the Department of Health and Human Services shall award grants to local agencies for the development and implementation of locally-based family preservation services projects. In awarding the grants, the Secretary shall consider the recommendations of the Advisory Committee on Family-Centered Services. The number of grants awarded and the level of funding of each grant for each fiscal year shall be contingent upon and determined by funds appropriated for that purpose by the General Assembly and shall be in accordance with the phase-in period of the Family Preservation Services Program. During the phase-in period, and to the extent funds are appropriated, grants shall be awarded by the Secretary on a competitive basis to local agencies who submit proposals for such funding, which proposals meet grant award criteria established by the Advisory Committee on Family-Centered Services.Assembly."

SECTION 21.50.(h)  G.S. 143B-150.7 is repealed.

SECTION 21.50.(i)  G.S. 143B-150.8 is repealed.

SECTION 21.50.(j)  G.S. 143B-150.9 is repealed.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

TANF STATE PLAN

SECTION 21.51.(a)  The General Assembly approves the plan titled "North Carolina Temporary Assistance for Needy Families State Plan FY 2001-2003", prepared by the Department of Health and Human Services and presented to the General Assembly on May 15, 2001, as revised in accordance with subsection (b) of this section.  The North Carolina Temporary Assistance for Needy Families State Plan covers the period October 1, 2001, through September 30, 2003.  The Department shall submit the State Plan, as revised in accordance with subsection (b) of this section, to the United States Department of Health and Human Services as amended by this act or any other act of the 2001 General Assembly.

SECTION 21.51.(b)  The Department of Health and Human Services shall revise the North Carolina Temporary Assistance for Needy Families State Plan FY 2001-2003, submitted to the General Assembly for approval on May 15, 2001. The revisions shall be made to the following Plan components:

(1)       Enhanced Employee Assistance Program to reflect changes in funding.

(2)       Services for Families to remove reference to start-up activities.

(3)       Work Responsibility  to remove reference to start-up activities.

(4)       Cabarrus County Waiver to reflect changes in the law made by the 2001 General Assembly.

(5)       Goal #8 to provide that caseload reduction goals are subject to economic conditions in the county.

SECTION 21.51.(c)  The counties approved as Electing Counties in North Carolina's Temporary Assistance for Needy Families State Plan FY 2001-2003 as approved by this section are: Caldwell, Caswell, Davie, Henderson, Iredell, Lenoir, Lincoln, Macon, McDowell, Randolph, Sampson, Surry, and Wilkes.

SECTION 21.51.(d)  Counties designated as electing counties pursuant to Section 12.27A of S.L. 1998-212 and who submitted the letter of intent to be redesignated as a standard county and the accompanying county plan for FY 2001-2003, pursuant to G.S. 108A-27(e), shall operate under the standard county budget requirements effective July 1, 2001.  Counties that submitted the letter of intent to remain as an electing county or to be redesignated as an electing county and the accompanying county plan for FY 2001-2003, pursuant to G.S. 108A-27(e), shall operate under the electing county budget requirements effective July 1, 2001.  For programmatic purposes, all counties referred to in this subsection shall remain under their current county designation through September 30, 2001.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

REPEAL RECIPIENT IDENTIFICATION SYSTEM

SECTION 21.52.  G.S. 108A-24(1a) and G.S. 108A-25.1 are repealed.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

CHILD SUPPORT PILOT PROGRAM/ENHANCED STANDARDS

SECTION 21.53.(a)  It is the intent of the General Assembly to increase the productivity and enhance the performance of child support enforcement offices statewide.

SECTION 21.53.(b)  The Department of Health and Human Services shall develop and implement  performance standards for each of the State and county child support enforcement offices across the State.  In development of these performance standards, the Department of Health and Human Services shall evaluate other private and public child support models and national standards as well as other successful collections models.  These performance standards shall include the following:

(1)       Cost per collections.

(2)       Consumer satisfaction.

(3)       Paternity establishments.

(4)       Administrative costs.

(5)       Orders established.

(6)       Collections on arrearages.

(7)       Location of absent parents.

(8)       Other related performance measures.

The Department of Health and Human Services shall monitor the performance of each office and shall implement a system of reporting which allows each local office to review its performance as well as the performance of other local offices. The Department of Health and Human Services shall publish an annual performance report that shall include the statewide and local office performance of each child support office.

SECTION 21.53.(c)  The Department of Health and Human Services shall develop and implement a program to reward its child support enforcement offices for exemplary performance.

SECTION 21.53.(d)  The Department of Health and Human Services shall report on its progress in complying with the provisions of this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.  The Department shall make an interim report no later than January 15, 2002, and a final report no later than May 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Adult Care Home Model for Community-Based Services

SECTION 21.54.(a)  In keeping with the United States Supreme Court Decision in Olmstead vs. L.C. & E.W. and with State policy to provide appropriate services to clients in the least restrictive and most appropriate environment, the Department of Health and Human Services shall develop a model project for delivering community-based mental health, developmental disabilities, and substance abuse housing and services through adult care homes that have excess capacity.  The model shall be designed for implementation on a pilot basis and shall address the following:

(1)       Services that will be provided by the facility or under contract with the facility, including assistance with daily medication.

(2)       Access of clients to mental health, developmental disabilities, and substance abuse services provided in the community, including transportation to services outside of the client's residence in the adult care home facility.

(3)       Physical plant additions or changes necessary to provide for independent living of residents.

(4)       Methods for assuring quality of services, resident safety, and cost-effectiveness.

(5)       Consistency with the Department's Olmstead plan, other policies on community-integration, and disability plans adopted by the State.

SECTION 21.54.(b)  The Department shall submit a progress report on the development of the model 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 January 1, 2002, and  a final report on March 1, 2002.  The report shall address the following:

(1)       The proposed time and location for implementation of the pilot.

(2)       Proposed number of residents to be placed and services to be provided directly by the facility or under contract with the facility.

(3)       Method for evaluating the pilot, including services provided, on a regular basis.

(4)       A description of the living environment for each resident and a comparison of how the living environment compares to that of other residents in the adult care home.

(5)       Changes to State law necessary to implement the pilot.

(6)       Projected cost to the State for pilot and statewide implementation.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

FUNDS FOR CHILD SUPPORT SERVICES

SECTION 21.54A.  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Social Services, the sum of one million five hundred thousand dollars ($1,500,000) for the 2001-2002 fiscal year, and one million five hundred thousand dollars ($1,500,000) for the 2002-2003 fiscal year, shall be used to contract for additional child support services in urban counties demonstrating significant caseload backlogs.  The additional support to urban counties shall address the backlog of cases and emphasize the establishment of paternities and the location of absent parents.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

LIABILITY INSURANCE

SECTION 21.55.  The Secretary of the Department of Health and Human Services, the Secretary of the Department of Environment and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed one million dollars ($1,000,000) per incident on behalf of employees of the Departments licensed to practice medicine or dentistry, all licensed physicians who are faculty members of The University of North Carolina who work on contract for the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services for incidents that occur in Division programs, and on behalf of physicians in all residency training programs from The University of North Carolina who are in training at institutions operated by the Department of Health and Human Services.  This coverage may include commercial insurance or self-insurance and shall cover these individuals for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment or training.

The coverage provided under this section shall not cover any individual for any act or omission that the individual knows or reasonably should know constitutes a violation of the applicable criminal laws of any state or the United States, or that arises out of any sexual, fraudulent, criminal, or malicious act, or out of any act amounting to willful or wanton negligence.

The coverage provided pursuant to this section shall not require any additional appropriations and shall not apply to any individual providing contractual service to the Department of Health and Human Services, the Department of Environment and Natural Resources, or the Department of Correction, with the exception that coverage may include physicians in all residency training programs from The University of North Carolina who are in training at institutions operated by the Department of Health and Human Services and licensed physicians who are faculty members of The University of North Carolina who work for the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

PRIVATE AGENCY UNIFORM COST-FINDING REQUIREMENT

SECTION 21.56.  To ensure uniformity in rates charged to area programs and funded with State-allocated resources, the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services of the Department of Health and Human Services may require a private agency that provides services under contract with two or more area programs, except for hospital services that have an established Medicaid rate, to complete an agency-wide uniform cost finding in accordance with G.S. 122C-143.2(a) and G.S. 122C-147.2.  The resulting cost shall be the maximum included for the private agency in the contracting area program's unit cost finding.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Gulley, Lucas, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

BUTNER COMMUNITY LAND RESERVATION

SECTION 21.57.  The Department of Health and Human Services shall reserve and dedicate the following described land for the construction of a Community Building and related facilities to serve the Butner Reservation:

"Approximately 2 acres, on the east side it borders Central Avenue with a line running along the Wallace Bradshur property on the north back to the tree line next to the ADATC. From there it follows the tree line south and west to and including the softball field. From the softball field it turns east to the State Employees Credit Union and follows the Credit Union property on the south side back to Central Avenue."

This land shall be reserved and dedicated for the project which shall be funded with contributions from Granville County, contributions from the residents of the Butner Reservation, the use of cablevision franchise rebate funds received by the Department of Health and Human Services on behalf of the Butner Reservation, and other public and private sources.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Insko, Easterling, Oldham, Redwine, Thompson

MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES TRUST FUND FOR SYSTEM REFORM BRIDGE AND CAPITAL FUNDING NEEDS AND OLMSTEAD

SECTION 21.58.(a)  Chapter 143 of the General Statutes is amended by adding the following section to read:

"§ 143-15D. Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs.

(a)       The Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs is established as an interest-bearing, nonreverting special trust fund in the Office of State Budget and Management. Moneys in the Trust Fund shall be held in trust and used solely to meet the mental health, developmental disabilities, and substance abuse services needs of the State. The Trust Fund shall be used to supplement and not to supplant or replace existing State and local funding available to meet the mental health, developmental disabilities, and substance abuse services needs of the State.

The State Treasurer shall hold the Trust Fund separate and apart from all other moneys, funds, and accounts. The State Treasurer shall be the custodian of the Trust Fund and shall invest its assets in accordance with G.S. 147-69.2 and G.S. 147-69.3. Investment earnings credited to the assets of the Trust Fund shall become part of the Trust Fund. Any balance remaining in the Trust Fund at the end of any fiscal year shall be carried forward in the Trust Fund for the next succeeding fiscal year.

Moneys in the Trust Fund shall be expended only in accordance with subsection (b) of this section and in accordance with limitations and directions enacted by the General Assembly.

(b)       Moneys in the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs shall be used only to:

(1)       Provide start-up funds and operating support for programs and services that provide more appropriate and cost-effective community treatment alternatives for individuals currently residing in the State's mental health, developmental disabilities, and substance abuse services institutions.

(2)       Facilitate the State's compliance with the United States Supreme Court decision in Olmstead v. L.C. and E.W.

(3)       Facilitate reform of the mental health, developmental disabilities, and substance abuse services system and expand and enhance treatment and prevention services in these program areas to remove waiting lists and provide appropriate and safe services for clients.

(4)       Provide bridge funding to maintain appropriate client services during transitional periods as a result of facility closings, including  departmental restructuring of services.

(5)       Construct, repair, and renovate State mental health, developmental disabilities, and substance abuse services facilities."

SECTION 21.58.(b).  The Secretary of the Department of Health and Human Services shall develop a plan, after consultation with advocacy groups and affected State and local agencies and programs concerned with the mental health, developmental disabilities, and substance abuse services needs of the State, for the use of funds from the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs established under G.S. 143D-15D to meet the mental health needs of the State. The plan shall be consistent with the plan developed pursuant to G.S. 122C-102, if enacted in House Bill 381 of the 2001 General Assembly. Funds shall not be transferred from the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs until the Secretary has consulted with the Joint Legislative Commission on Governmental Operations, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Chairs of the Senate Appropriations Committee on Health and Human Services and the House of Representatives Appropriations Subcommittee on Health and Human Services.

SECTION 21.58.(c).  Moneys in the Trust Fund established pursuant to G.S. 143-15D shall be used to establish or expand community-based services only if sufficient recurring funds can be identified within the Department from funds currently budgeted for mental health, developmental disabilities, and substance abuse services, area mental health programs or county programs, or local government.

SECTION 21.58.(d)  Funds in the Mental Health, Developmental Disabilities, and Substance Abuse Services Reserve for System Reform and Olmstead shall be transferred to the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs established under G.S. 143-15D.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

NONMEDICAID REIMBURSEMENT CHANGES

SECTION 21.59.  Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.

The Department of Health and Human Services may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.

Notwithstanding the provisions of paragraph one, the Department of Health and Human Services may negotiate with providers of medical services under the various Department of Health and Human Services programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes:  contracts or agreements for medical services and purchases of medical equipment and other medical supplies. These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents, and clients who require such services which cannot be provided when limited to the Medicaid rate.

Maximum net family annual income eligibility standards for services in these programs shall be as follows:

 

                                           Medical Eye                                      All

Family Size                        Care Adults                             Rehabilitation                            Other

        1                                     $4,860                                    $8,364                                  $4,200

        2                                        5,940                                    10,944                                     5,300

        3                                        6,204                                    13,500                                     6,400

        4                                        7,284                                    16,092                                     7,500

        5                                        7,821                                    18,648                                     7,900

        6                                        8,220                                    21,228                                     8,300

        7                                        8,772                                    21,708                                     8,800

        8                                        9,312                                    22,220                                     9,300

 

The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. The eligibility level for adults in the Atypical Antipsychotic Medication Program in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall be one hundred fifty percent (150%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. Additionally, those adults enrolled in the Atypical Antipsychotic Medication Program who become gainfully employed may continue to be eligible to receive State support, in decreasing amounts for the purchase of atypical antipsychotic medication and related services up to three hundred percent (300%) of the poverty level.

State financial participation in the Atypical Antipsychotic Medication Program for those enrollees who become gainfully employed is as follows:

 

                  Income              State Participation                Client Participation

            (% of poverty)

           0-150%                        100%                                            0%

       151-200%                          75%                                          25%

       201-250%                          50%                                          50%

       251-300%                          25%                                          75%

       300% and over                     0%                                       100%

 

The Department of Health and Human Services shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

COMPREHENSIVE TREATMENT SERVICES PROGRAM

SECTION 21.60.(a)  The Department of Health and Human Services shall establish the Comprehensive Treatment Services Program for children at risk for institutionalization or other out-of-home placement.  The Program shall be implemented by the Department in consultation with the Department of Juvenile Justice and Delinquency Prevention, the Department of Public Instruction, and other affected State agencies.  The purpose of the Program is to provide appropriate and medically necessary residential and nonresidential treatment alternatives for children at risk of institutionalization or other out-of-home placement.  Program funds shall be targeted for non-Medicaid eligible children.  Program funds may also be used to expand a system-of-care approach for services to children and their families statewide.  The program shall include the following:

(1)       Behavioral health screening for all children at risk of institutionalization or other out-of-home placement.

(2)       Appropriate and medically necessary residential and nonresidential services for deaf children.

(3)       Appropriate and medically necessary residential and nonresidential treatment services including placements for sexually aggressive youth.

(4)       Appropriate and medically necessary residential and nonresidential treatment services including placements for youths needing substance abuse treatment services and children with serious emotional disturbances.

(5)       Multidisciplinary case management services, as needed.

(6)       A system of utilization review specific to the nature and design of the Program.

(7)       Mechanisms to ensure that children are not placed in department of social services custody for the purpose of obtaining mental health residential treatment services.

(8)       Mechanisms to maximize current State and local funds and to expand use of Medicaid funds to accomplish the intent of this Program.

(9)       Other appropriate components to accomplish the Program's purpose.

(10)     The Secretary of the Department of Health and Human Services may enter into contracts with residential service providers.

(11)     A system of identifying and tracking children placed outside of the family unit in group homes, therapeutic foster care home settings, and other out-of-home placements.

SECTION 21.60.(b)  In order to ensure that children at risk for institutionalization or other out-of-home placement are appropriately served by the mental health, developmental disabilities, and substance abuse services system, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall do the following with respect to services provided to these children:

(1)       Provide only those treatment services that are medically necessary.

(2)       Implement utilization review of services provided.

(3)       Adopt the following guiding principles for the provision of services:

a.         Service delivery system must be outcome-oriented and evaluation-based.

b.         Services should be delivered as close as possible to the child's home.

c.         Services selected should be those that are most efficient in terms of cost and effectiveness.

d.         Services should not be provided solely for the convenience of the provider or the client.

e.         Families and consumers should be involved in decision making throughout treatment planning and delivery.

(4)       Implement all of the following cost-reduction strategies:

a.         Preauthorization for all services except emergency services.

b.         Levels of care to assist in the development of treatment plans.

c.         Clinically appropriate services.

d.         Not later than May 1, 2002, State review of individualized service plans for former Willie M. class members and for other children whose individual service plan exceeds one hundred thousand dollars ($100,000) to ensure that service plans focus on delivery of appropriate services rather than optimal treatment and habilitation plans.

SECTION 21.60.(c)  The Department shall collaborate with other affected State agencies such as the Department of Juvenile Justice and Delinquency Prevention, the Department of Public Instruction, the Administrative Office of the Courts, and with local departments of social services, area mental health programs, and local education agencies to eliminate cost shifting and facilitate cost-sharing among these governmental agencies with respect to the treatment and placement services.

SECTION 21.60.(d)  The Department shall not allocate funds appropriated for Program services until a Memorandum of Agreement has been executed between the Department of Health and Human Services, the Department of Public Instruction, and other affected State agencies.  The Memorandum of Agreement shall address specifically the roles and responsibilities of the various departmental divisions and affected State agencies involved in the administration, financing, care, and placement of children at risk of institutionalization or other out-of-home placement.  The Department shall not allocate funds appropriated in this act for the Program until Memoranda of Agreement between local departments of social services, area mental health programs, local education agencies, and the Administrative Office of the Courts and the Department of Juvenile Justice and Delinquency Prevention, as appropriate, are executed to effectuate the purpose of the Program.  The Memoranda of Agreement shall address issues pertinent to local implementation of the Program, including provision for the immediate availability of student records to a local school administrative unit receiving a child placed in a residential setting outside the child's home county.

SECTION 21.60.(e)  Notwithstanding any other provision of law to the contrary, services under the Comprehensive Treatment Services Program are not an entitlement for non-Medicaid eligible children served by the Program.

SECTION 21.60.(f)  Of the funds appropriated in this act for the Comprehensive Treatment Services Program, the Department of Health and Human Services shall establish a reserve of three percent (3%) to ensure availability of these funds to address specialized needs for children with unique or highly complex problems.

SECTION 21.60.(g)  The Department of Health and Human Services, in conjunction with the Department of Juvenile Justice and Delinquency Prevention, the Department of Public Instruction, and other affected agencies, shall report on the following Program information:

(1)       The number and other demographic information of children served.

(2)       The amount and source of funds expended to implement the Program.

(3)       Information regarding the number of children screened, specific placement of children including the placement of children in programs or facilities outside of the child's home county, and treatment needs of children served.

(4)       The average length of stay in residential treatment, transition, and return to home.

(5)       The number of children diverted from institutions or other out-of-home placements such as training schools and State psychiatric hospitals and a description of the services provided.

(6)       Recommendations on other areas of the Program that need to be improved.

(7)       Other information relevant to successful implementation of the Program.

SECTION 21.60.(h)  The Department shall submit an interim report on December 1, 2001, on the implementation of this section and a final report not later than April 1, 2002, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Whitaker School

SECTION 21.61.(a)  The Department of Health and Human Services shall work with families and guardians, the Department of Public Instruction, the Department of Juvenile Justice and Delinquency Prevention, and appropriate local education agencies, area mental health, developmental disabilities, and substance abuse programs, and local departments of social services to develop a plan for the transition of children from the Whitaker School to their homes or alternative facilities. The Plan shall ensure appropriate and safe placement for those children who, in accordance with the assessment, need an institutional setting.  The Plan shall also include transition plans that facilitate and support children living in their natural environments and utilizing existing resources and natural supports.  The Department shall report on the status of its compliance with this section on April 1, 2002 and again on October 1, 2002. The report shall be submitted to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

MENTAL RETARDATION CENTER transition plan

SECTION 21.62.(a)  In keeping with the United States Supreme Court Decision in Olmstead vs. L.C. & E.W. and State policy to provide appropriate services to clients in the least restrictive and most appropriate environment, the Department of Health and Human Services shall develop and implement a plan for the transfer of residents of State mental retardation centers, if appropriate, as follows:

(1)       Transfer those residents of the centers that need institutional services to a private intermediate care facility for the mentally retarded.

(2)       Transition to community programs and services those residents of the center that may be appropriately served in the community.

The Department shall develop a transition plan for moving each resident of the mental retardation center to the community-based services and supports, if appropriate.  The transition plan shall be developed in consultation with the resident and the resident's family or guardian.

SECTION 21.62.(b)  The Department may use funds from the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs to facilitate the transition of residents into alternative community-based services as required under subsection (a) of this section.  Nonrecurring savings realized from implementation of the plan required under subsection (a) of this section shall be deposited to the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs to be used to facilitate the transition of clients into appropriate community-based services and supports in accordance with Section 21.58 of this act.  Recurring savings realized through implementation of this section shall be retained by the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (i) for implementation of subsection (a)(1) and (2) of this section, and (ii) to support the recurring costs of additional community-based placements from Division facilities in accordance with Olmstead vs. L.C. & E.W.

SECTION 21.62.(c)  On or before January 1, 2002, and again on or before May 1, 2002, and May 1, 2003, 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 its progress in implementing this section.

SECTION 21.62.(d)  Before closing one or more State mental retardation centers the Department shall report the closure to the Joint Legislative Commission on Governmental Operations.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

DOROTHEA DIX HOSPITAL

SECTION 21.63.(a)  In keeping with the United States Supreme Court decision in Olmstead vs. L.C. & E.W. and State policy to provide appropriate services to clients in the least restrictive and most appropriate environment, the Department of Health and Human Services shall develop and implement a plan for the construction of a replacement facility for Dorothea Dix Hospital in accordance with subsection (d) of this section, and for the transition of patients to the new facility, to the community, or to other long-term care facilities, as appropriate. The goal of the State Hospital Plan is to develop mechanisms and identify resources needed to enable current patients and their families to continue to receive the necessary services and supports based on the following guiding principles:

(1)       Individuals shall be provided acute psychiatric care in non-State facilities when appropriate.

(2)       Individuals shall be provided acute psychiatric care in State facilities only when non-State facilities are unavailable.

(3)       Individuals shall receive evidenced-based psychiatric services and care that are cost-efficient.

(4)       The State shall minimize cost shifting to other State and local facilities or institutions.

SECTION 21.63.(b)  The Department of Health and Human Services shall conduct an analysis of the individual patient service needs and shall develop and implement an individual transition plan for each patient in the hospital.  The State shall ensure that transition plans for placement of and services to individuals who are patients of Dorothea Dix Hospital take into consideration the availability of appropriate alternative placements based on the needs of the patient and within resources available for the mental health, developmental disabilities, and substance abuse services system. In developing each plan, the Department shall consult with the patient and the patient's family or other legal representative.

SECTION 21.63.(c)  In accordance with the plan established in subsections (a) and (b) of this section, any nonrecurring savings in State appropriations that result from reductions in beds or services shall be placed in the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs.  These funds shall be used to facilitate the transition of clients into appropriate community-based services and supports in accordance with Section 21.58 of this act. Recurring savings realized through implementation of this section shall be retained by the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (i) for implementation of subsections (a) and (b) of this section, and (ii) to support the recurring costs of additional community-based placements from Division facilities in accordance with Olmstead vs. L.C. & E.W.

SECTION 21.63.(d)   The Secretary of the Department of Health and Human Services shall, in consultation with the Department of Administration, plan for the construction of a psychiatric hospital to replace Dorothea Dix Hospital and to provide acute psychiatric treatment services for citizens of the State. The Department shall identify alternative locations for the new hospital.  The Department shall identify those alternative locations that maximize existing State funds, access by clients, and efficiencies in service and administration. In developing this plan, the Secretary, in consultation with the Department of State Treasurer and the Department of Administration, shall identify and recommend the most cost-effective means to finance construction of the new State hospital. The Department shall also take into consideration the findings and recommendations of the Government Performance Audit Committee (GPAC), December 1992, MGT America Report of 1998, and the Report of the Department of State Auditor, April 1, 2000. The Department of Health and Human Services shall provide a progress report on December 1, 2001, and a final report not later than April 1, 2002, 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.

SECTION 21.63.(e)  The Department of Health and Human Services shall submit reports on the status of implementation of this section to the Joint Legislative Commission on Governmental Operations, the Senate Appropriations Committee on Health and Human Services, the House Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.  These reports shall be submitted on February 1, 2002, and May 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Reorganization of Division of mental health, developmental disabilities, and substance abuse services

SECTION 21.64.(a)  The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall reduce layers of management and duplication of services in accordance with the following:

(1)       Eliminate the Hospitals Services Section, including positions and corresponding State appropriations, federal funds, and other funds. The administration, planning, and coordination of all adult mental health services and programs shall be consolidated within an existing section in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.

(2)       Eliminate the Mental Retardation/Mental Illness Transition Branch within the Developmental Disabilities Section, including positions, corresponding State appropriations, federal funds, and other funds.

(3)       Consolidate within one section all positions and corresponding State appropriations, federal funds, and other funds for financial, budgetary, information technology, and other administrative support functions in order to create one administrative and budgetary support section within the Division.

SECTION 21.64.(b)  The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall study the feasibility of consolidating its staff, responsibilities, and resources around the functional areas of need of its clients regardless of disability.  These functional areas shall include housing services and supports, supported employment, local crisis services, and capacity development.

SECTION 21.64.(c)  The Department of Health and Human Services 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 its progress in complying with this section.  The progress reports shall be submitted on or before November 1, 2001, and December 1, 2001.  The final report shall be submitted on or before April 15, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

REDUCE ADMINISTRATIVE COSTS OF AREA MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE AUTHORITIES

SECTION 21.65.(a)  Area mental health, developmental disabilities, and substance abuse authorities or counties administering mental health, developmental disabilities, and substance abuse services shall develop and implement plans to reduce local administrative costs.  The plans shall be developed in accordance with guidelines adopted by the Secretary, in consultation with the Local Government Commission and the North Carolina Association of County Commissioners, and in accordance with the following:

(1)       For the 2001-2002 fiscal year, administrative costs for:

a.         Area mental health, developmental disabilities, and substance abuse services programs shall not exceed fifteen percent (15%).

b.         Counties administering mental health, developmental disabilities, and substance abuse services through a county program shall not exceed fifteen percent (15%).

(2)       For the 2002-2003 fiscal year, administrative costs for:

a.         Area mental health, developmental disabilities, and substance abuse services programs shall not exceed thirteen percent (13%).

b.         Counties administering mental health, developmental disabilities, and substance abuse services through a county program shall not exceed thirteen percent (13%).

SECTION 21.65.(b)  The Department of Health and Human Services shall report its progress in complying with this section not later than January 1, 2002, and April 15, 2002.  The reports shall be submitted to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division and shall include:

(1)       A description of the process used and the participants involved in complying with subsection (a) of this section.

(2)       The guidelines developed under subsection (a) of this section.

(3)       A description of local compliance initiatives and efforts including program or function consolidation.

(4)       A list of area programs at or below the targeted thirteen percent (13%) for the 2000-2001 fiscal year.

(5)       Projected savings in administrative costs as a result of implementation of the targeted limits required under this section.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

SERVICES TO MULTIPLY- DIAGNOSED ADULTS

SECTION 21.66.(a)  In order to ensure that multiply-diagnosed adults are appropriately served by the mental health, developmental disabilities, and substance abuse services system, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall do the following with respect to services provided to these adults:

(1)       Implement the following guiding principles for the provision of services:

a.         Service delivery system must be outcome oriented and evaluation based.

b.         Services should be delivered as close as possible to the consumer's home.

c.         Services selected should be those that are most efficient in terms of cost and effectiveness.

d.         Services should not be provided solely for the convenience of the provider or the client.

e.         Families and consumers should be involved in decision making throughout treatment planning and delivery; and

(2)       Provide those treatment services that are medically necessary.

(3)       Implement utilization review of services provided.

SECTION 21.66.(b)  The Department of Health and Human Services shall implement all of the following cost-reduction strategies:

(1)       Preauthorization for all services except emergency services.

(2)       Criteria for determining medical necessity.

(3)       Clinically appropriate services.

(4)       Not later than May 1, 2002, conduct a State review of (i) individualized service plans for former Thomas S. class members and for adults whose service plan exceeds one hundred thousand dollars ($100,000) to ensure that service plans focus on delivery of appropriate services rather than optimal treatment and habilitation plans, and (ii) staffing patterns of residential services.

SECTION 21.66.(c)  No State funds shall be used for the purchase of single-family or other residential dwellings to house multiply-diagnosed adults.

SECTION 21.66.(d)  The Department shall submit a progress report on implementation of this section not later than February 1, 2001, and a final report not later than May 1, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

DOWNSIZING OF MENTAL RETARDATION CENTERS

SECTION 21.67.(a)  In accordance with the Department of Health and Human Services' plan for downsizing the State's regional mental retardation facilities by four percent (4%) each year, the Department shall implement cost-containment and reduction strategies to ensure the corresponding financial and staff downsizing of each facility. The Department shall manage the client population of the mental retardation centers in order to ensure that placements for ICF/MR level of care shall be made in non-State facilities.  Admissions to State ICF/MR facilities are permitted only as a last resort and only upon approval of the Department.  The corresponding budgets for each of the State mental retardation centers shall be reduced, and positions shall be eliminated as the census of each facility decreases.  At no time shall mental retardation center positions be transferred to other units within a facility or assigned nondirect care activities such as outreach. 

SECTION 21.67.(a1)  Any savings in State appropriations in excess of two million nine hundred thousand dollars ($2,900,000) in each year of the 2001-2003 fiscal biennium that result from reductions in beds or services shall be applied as follows:

(1)       Nonrecurring savings shall be placed in the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs and shall be used to facilitate the transition of clients into appropriate community-based services and support in accordance with Section 21.58 of this act, and

(2)       Recurring savings realized through implementation of this section shall be retained by the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to support the recurring costs of additional community-based placements from Division facilities in accordance with Olmstead vs. L.C. & E.W. In determining the savings in this section, savings shall include all savings realized from the downsizing of the State mental retardation centers including both the savings in direct State appropriations in the budgets of the State mental retardation centers as well as the savings in the State matching portion of reduced Medicaid payments associated with downsizing.

SECTION 21.67.(b)  The Department of Health and Human Services shall report on its progress in complying with this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.  The progress report shall be submitted not later than January 15, 2002, and a final report submitted not later than May 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

STATE PSYCHIATRIC HOSPITALS BED ALLOCATION PLAN

SECTION 21.68A.  The Department of Health and Human Services shall develop and implement a plan that provides for the allocation of State psychiatric hospital beds among counties served by the State's regional psychiatric hospitals.  The Plan shall incorporate policies that take into consideration State and county fiscal responsibilities and capacity, cost efficiency, and the principles and guidance embodied in the Olmstead vs. L.C. & E.W. decision. The Department shall report on the implementation of this section to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division, on March 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

CHILD CARE ALLOCATION FORMULA

SECTION 21.69.(a)  The Department of Health and Human Services shall allocate child care subsidy voucher funds to pay the costs of necessary child care for minor children of needy families.  The mandatory thirty percent (30%) Smart Start subsidy allocation under G.S. 143B-168.15(g) shall constitute the base amount for each county's child care subsidy allocation. The Department of Health and Human Services shall apply the following formula to all noncategorical federal and State child care funds, not including the aggregate mandatory thirty percent (30%) Smart Start subsidy allocation:

(1)       One-third of budgeted funds shall be distributed according to the county's population in relation to the total population of the State.

(2)       One-third of budgeted funds shall be distributed according to the number of children under six years of age in a county who are living in families whose income is below the State poverty level in relation to the total number of children under six years of age in the State in families whose income is below the poverty level.

(3)       One-third of budgeted funds shall be distributed according to the number of working mothers with children under six years of age in a county in relation to the total number of working mothers with children under six years of age in the State.

SECTION 21.69.(b)  A county's initial allocation shall not be less than that county's total expenditures for both FSA and non-FSA child care in fiscal year 1995-96.

SECTION 21.69.(c)  The Department of Health and Human Services may reallocate unused child care subsidy voucher funds in order to meet the child care needs of low-income families.  Any reallocation of funds shall be based upon the expenditures of all child care subsidy voucher funding, including Smart Start funds, within a county.

SECTION 21.69.(d)  The Department of Health and Human Services, in consultation with the North Carolina Partnership for Children, Inc., the North Carolina Association of County Commissioners, directors of county departments of social services, and representatives of private for-profit and private not-for-profit child care providers, shall study the current methodology and process used to allocate all child care subsidy voucher funds to assess the effectiveness of the methodology and process in meeting the needs of North Carolina's low-income working families.  The Department shall report its findings and recommendations to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than April 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Child Care Funds Matching Requirement

SECTION 21.70.  No local matching funds may be required by the Department of Health and Human Services as a condition of any locality's receiving any State child care funds appropriated by this act unless federal law requires such a match.  This shall not prohibit any locality from spending local funds for child care services.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

child care revolving loan

SECTION 21.71.  Notwithstanding any law to the contrary, funds budgeted for the Child Care Revolving Loan Fund may be transferred to and invested by the financial institution contracted to operate the Fund.  The principal and any income to the Fund may be used to make loans, reduce loan interest to borrowers, serve as collateral for borrowers, pay the contractor's cost of operating the Fund, or to pay the Department's cost of administering the program.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES

SECTION 21.72.(a)  Administrative costs shall be equivalent to, on an average statewide basis for all local partnerships, not more than eight percent (8%) of the total statewide allocation to all local partnerships.  What counts as administrative costs shall be as defined in the Smart Start Performance Audit.

SECTION 21.72.(b)  The North Carolina Partnership for Children, Inc., and all local partnerships shall use competitive bidding practices in contracting for goods and services on contract amounts as follows:

(1)       For amounts of five thousand dollars ($5,000) or less, the procedures specified by a written policy to be developed by the Board of Directors of the North Carolina Partnership for Children, Inc.;

(2)       For amounts greater than five thousand dollars ($5,000) but less than fifteen thousand dollars ($15,000), three written quotes;

(3)       For amounts of fifteen thousand dollars ($15,000) or more but less than forty thousand dollars ($40,000), a request for proposal process; and

(4)       For amounts of forty thousand dollars ($40,000) or more, request for proposal process and advertising in a major newspaper.

SECTION 21.72.(c)  The North Carolina Partnership for Children, Inc., and all local partnerships shall, in the aggregate, be required to match no less than fifty percent (50%) of the total amount budgeted for the Program in each fiscal year of the biennium as follows:  contributions of cash equal to at least fifteen percent (15%) and in-kind donated resources equal to no more than five percent (5%) for a total match requirement of twenty percent (20%) for each fiscal year. The North Carolina Partnership for Children, Inc., may carryforward any amount in excess of the required match for a fiscal year in order to meet the match requirement of the succeeding fiscal year.  Only in-kind contributions that are quantifiable shall be applied to the in-kind match requirement.  Volunteer services may be treated as an in-kind contribution for the purpose of the match requirement of this subsection.  Volunteer services that qualify as professional services shall be valued at the fair market value of those services.  All other volunteer service hours shall be valued at the statewide average wage rate as calculated from data compiled by the Employment Security Commission in the Employment and Wages in North Carolina Annual Report for the most recent period for which data are available.  Expenses, including both those paid by cash and in-kind contributions, incurred by other participating non-State entities contracting with the North Carolina Partnership for Children, Inc., or the local partnerships, also may be considered resources available to meet the required private match.  In order to qualify to meet the required private match, the expenses shall:

(1)       Be verifiable from the contractor's records;

(2)       If in-kind, other than volunteer services, be quantifiable in accordance with generally accepted accounting principles for nonprofit organizations;

(3)       Not include expenses funded by State funds;

(4)       Be supplemental to and not supplant preexisting resources for related program activities;

(5)       Be incurred as a direct result of the Early Childhood Initiatives Program and be necessary and reasonable for the proper and efficient accomplishment of the Program's objectives;

(6)       Be otherwise allowable under federal or State law;

(7)       Be required and described in the contractual agreements approved by the North Carolina Partnership for Children, Inc., or the local partnership; and

(8)       Be reported to the North Carolina Partnership for Children, Inc., or the local partnership by the contractor in the same manner as reimbursable expenses.

The North Carolina Partnership for Children, Inc., shall establish uniform guidelines and reporting format for local partnerships to document the qualifying expenses occurring at the contractor level. Local partnerships shall monitor qualifying expenses to ensure they have occurred and meet the requirements prescribed in this subsection.

Failure to obtain a twenty percent (20%) match by June 30 of each fiscal year shall result in a dollar-for-dollar reduction in the appropriation for the Program for a subsequent fiscal year. The North Carolina Partnership for Children, Inc., shall be responsible for compiling information on the private cash and in-kind contributions into a report that is submitted to the Joint Legislative Commission on Governmental Operations in a format that allows verification by the Department of Revenue. The same match requirements shall apply to any expansion funds appropriated by the General Assembly.

SECTION 21.72.(d)  Counties participating in the Program may use the county's allocation of State and federal child care funds to subsidize child care according to the county's Early Childhood Education and Development Initiatives Plan as approved by the North Carolina Partnership for Children, Inc.  The use of federal funds shall be consistent with the appropriate federal regulations.  Child care providers shall, at a minimum, comply with the applicable requirements for State licensure pursuant to Article 7 of Chapter 110 of the General Statutes, with other applicable requirements of State law or rule, including rules adopted for nonlicensed child care by the Social Services Commission, and with applicable federal regulations.

SECTION 21.72.(e)  The Department of Health and Human Services shall continue to implement the performance-based evaluation system.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

CHILD CARE SUBSIDY RATES

SECTION 21.73.(a)  G.S. 110-109 is repealed.

SECTION 21.73.(b)  Subsection (d) of Section 11.27 of S.L. 2000-67 is repealed.

SECTION 21.73.(c)  The maximum gross annual income for initial eligibility, adjusted biennially, for subsidized child care services shall be seventy-five percent (75%) of the State median income, adjusted for family size.

SECTION 21.73.(d)  Fees for families who are required to share in the cost of care shall be established based on a percent of gross family income and adjusted for family size.  Effective October 1, 2001, fees shall be determined as follows:

FAMILY SIZE                       PERCENT OF GROSS FAMILY INCOME

1-3                                                                      10%

4-5                                                                        9%

6 or more                                                             8%.

SECTION 21.73.(e)  On or before September 30, 2001, payments for the purchase of child care services for low-income children shall be the same as would have resulted under Section 11.27 of S.L. 2000-67.  Effective October 1, 2001, payments for the purchase of child care services for low-income children shall be in accordance with the following requirements:

(1)       Religious-sponsored child care facilities operating pursuant to G.S. 110-106 and licensed child care centers and homes that meet the minimum licensing standards that are participating in the subsidized child care program shall be paid the one-star county market rate or the rate they charge privately paying parents, whichever is lower.

(2)       Religious-sponsored child care facilities operating pursuant to G.S. 110-106 and licensed child care centers and homes that are receiving a higher rate than the market rates that will be implemented with this provision shall continue to receive that higher rate until September 30, 2002.

(3)       Licensed child care centers and homes with two or more stars shall receive the market rate for that rated license level for that age group or the rate they charge privately paying parents, whichever is lower.

(4)       Nonlicensed homes shall receive fifty percent (50%) of the county market rate or the rate they charge privately paying parents, whichever is lower.

(5)       Maximum payment rates shall also be calculated periodically by the Division of Child Development for transportation to and from child care provided by the child care provider, individual transporter, or transportation agency, and for fees charged by providers to parents. These payment rates shall be based upon information collected by market rate surveys.

SECTION 21.73.(f)  Provision of payment rates for child care providers in counties that do not have at least 75 children in each age group for center-based and home-based care are as follows:

(1)       Payment rates shall be set at the statewide or regional market rate for licensed child care centers and homes.

(2)       If it can be demonstrated that the application of the statewide or regional market rate to a county with fewer than 75 children in each age group is lower than the county market rate and would inhibit the ability of the county to purchase child care for low-income children, then the county market rate may be applied.

SECTION 21.73.(g)  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.

SECTION 21.73.(h)  Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes and facilities operated pursuant to G.S. 110-106 may participate in the program that provides for the purchase of care in child care facilities for minor children of needy families.  No separate licensing requirements shall be used to select facilities to participate.  In addition, child care facilities shall be required to meet any additional applicable requirements of federal law or regulations.  Child care arrangements exempt from State regulation pursuant to Article 7 of Chapter 110 of the General Statutes shall meet the requirements established by other State law and by the Social Services Commission.

County departments of social services or other local contracting agencies shall not use a provider's failure to comply with requirements in addition to those specified in this subsection as a condition for reducing the provider's subsidized child care rate.

SECTION 21.73.(i)  Payment for subsidized child care services provided with Work First Block Grant funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.

SECTION 21.73.(j)  Noncitizen families who reside in this State legally shall be eligible for child care subsidies if all other conditions of eligibility are met.  If all other conditions of eligibility are met, noncitizen families who reside in this State illegally shall be eligible for child care subsidies only if at least one of the following conditions is met:

(1)       The child for whom a child care subsidy is sought is receiving child protective services or foster care services.

(2)       The child for whom a child care subsidy is sought is developmentally delayed or at risk of being developmentally delayed.

(3)       The child for whom a child care subsidy is sought is a citizen of the United States.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Division of Child Development Reorganization

SECTION 21.74.  The Department of Health and Human Services, Division of Child Development shall reduce layers of management and streamline operations in accordance with the following:

(1)       Eliminate the Workforce Support and Consumer Outreach Section, including positions and corresponding State appropriations, federal funds, and other funds. Except that the Workforce Support, Criminal Records Checks, and the Work Force Unit-Quality Improvement Units shall be transferred to the Administration Section, including positions and corresponding State appropriations, federal funds, and other funds.

(2)       Eliminate the Program Integrity and Quality Assurance Section including positions and corresponding State appropriations, federal funds, and other funds.

(3)       Eliminate the Research and Policy Unit including positions and corresponding State appropriations, federal funds, and other funds.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES ENHANCEMENTS

SECTION 21.75.(a)  The North Carolina Partnership for Children, Inc., and the Department of Health and Human Services shall immediately develop and implement the following:

(1)       Policies to ensure Early Childhood Education and Development Initiatives funds are allocated to child care programs, providers, and services that serve low-income children.

(2)       Policies to ensure the allocation of all State funds and federal funds where appropriate to the neediest child care providers with priority given from the lowest licensure rating to the highest. The North Carolina Partnership for Children, Inc., and the Department of Health and Human Services shall develop the definition of "neediest" as used in this subdivision.

(3)       Policies to ensure the allocation of State funds and federal funds where appropriate to child care programs and providers that serve an adequate number of children and families eligible to participate in the State child care subsidy voucher program. The North Carolina Partnership for Children, Inc., and the Department of Health and Human Services shall develop policies and a definition of "adequate" as used in this subdivision that takes into consideration the following:

a.         County economic conditions.

b.         Numbers of eligible families in a county.

c.         The diversity of child care needs in a county.

d.         Other factors that may impact on the number of child care facilities and the availability of child care in a county.

(4)       Policies to ensure the elimination of local duplication and increased efficiency in the administration of child care subsidy voucher funds, unless local partnerships in collaboration with county departments of social services can demonstrate to the Department a more efficient and effective plan for administration of child care subsidy voucher funds. These policies shall be developed and implemented no later than January 1, 2002.

(5)       Policies and procedures to ensure the unduplicated compilation of children served through State and federal child care subsidy voucher funds.

(6)       Policies and procedures to ensure the timely, accurate, and consistent reporting of information on local child care subsidy waiting lists statewide.

SECTION 21.75.(b)  In consultation with the Department of Public Instruction and the North Carolina Partnership for Children, Inc., the Department of Health and Human Services shall develop and implement policies and procedures to ensure that local partnerships that allocate funds to child care providers receiving State and federal child care funds plan and coordinate with their local education agencies the following:

(1)       Selection of preschool curriculum with measurable outcomes.

(2)       Kindergarten transition activities.

(3)       Other activities needed to ensure that children transitioning from child care settings to kindergarten enter school ready to succeed.

SECTION 21.75.(c)  The Department of Health and Human Services, in consultation with the North Carolina Partnership for Children, Inc., and the Office of State Budget and Management, shall develop a separate NCPC, Early Childhood Education and Development Initiative Program budget, within the Division of Child Development fund code for the purpose of segregating all expenditures related to the administration and operation of the statewide Smart Start program.

SECTION 21.75.(d)  The Department of Health and Human Services and the North Carolina Partnership for Children, Inc., shall ensure that the allocation of funds for Early Childhood Education and Development Initiatives for State fiscal year 2001-2002 shall be administered and distributed in the following manner:

(1)       The North Carolina Partnership for Children, Inc., shall develop a policy to allocate the reduction of funds for Early Childhood Education and Development Initiatives for the 2001-2002 fiscal year.

(2)       The North Carolina Partnership for Children, Inc., administration shall be reduced by ten percent (10%) from the 2000-2001 fiscal year level.

(3)       The Department of Health and Human Services Smart Start administration shall be reduced by ten percent (10%) from the 2000-2001 fiscal year level.

(4)       Capital expenditures and playground equipment expenditures are prohibited for fiscal year 2001-2002. For the purposes of this section, "capital expenditures" means expenditures for capital improvements as defined in G.S. 143-34.40.

SECTION 21.75.(e)  The allocation of  fiscal year 2000-2001 State carryforward funds is prohibited, and all fiscal year 2000-2001 unspent funds shall revert to the General Fund.

SECTION 21.75.(f)  For the 2001-2002 fiscal year, the North Carolina Partnership for Children, Inc., shall not approve local partnership plans that allocate State funds to child care providers for one-time quality improvement initiatives in the following circumstances:

(1)       Child care facilities with licensure of four or five stars, unless the expenditure of funds is to expand capacity for low-income children.

(2)       Child care facilities that do not accept child care subsidy funds.

(3)       Child care facilities that previously received quality improvement grants whose quality initiatives failed to increase licensure.

SECTION 21.75.(g)  G.S. 143B-168.15(f) is repealed.

SECTION 21.75.(h)  G.S. 143B-168.12(a)(9) is repealed.

SECTION 21.75(i).  G.S. 143B-168.12 is amended by adding a new subsection to read:

"(d)      The North Carolina Partnership for Children, Inc., shall make a report no later than December 1 of each year to the General Assembly that shall include the following:

(1)       A description of the program and significant services and initiatives.

(2)       A history of Smart Start funding and the previous fiscal year's expenditures.

(3)       The number of children served by type of service.

(4)       The type and quantity of services provided.

(5)       The results of the previous year's evaluations of the Initiatives or related programs and services.

(6)       A description of significant policy and program changes.

(7)       Any recommendations for legislative action."

SECTION 21.75.(j)  Notwithstanding the funding formula in G.S. 143B-168.13(a)(6), the State, in consultation with the North Carolina Partnership for Children, Inc., shall evaluate the feasibility of developing a revised funding formula which takes into consideration all relevant funding used by the State, local human services agencies and programs, and local partnerships to provide services and assistance to children under age five and their families.  These funds shall include the Early Intervention Preschool Program, Health Choice, and Family Resource Centers, as well as other State and local services and programs funded with State funds, federal funds, local funds, and other resources.

SECTION 21.75.(k)  Effective January 1, 2002, the North Carolina Partnership for Children, Inc., in consultation with Department of Health and Human Services, shall report the following information 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 a quarterly basis:

(1)       Total Smart Start budget and expenditures by month for the current fiscal year.

(2)       The number of children served by type of service.

(3)       A description of and expenditures for statewide initiatives.

(4)       A description of and quantity of non-child care services provided.

(5)       An accounting of expenditures for the child care voucher subsidy programs.

(6)       The progress of the North Carolina Partnership for Children, Inc., in complying with the provisions of this section.

(7)       Any other related information.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES EVALUATION

SECTION 21.76.  Of the funds appropriated to the Department of Health and Human Services, Division of Child Development, for the 2001-2002 fiscal year for the evaluation of the Early Childhood Education and Development Initiatives, no more than five hundred thousand dollars ($500,000) may be used for evaluation of the Initiatives.  The funds shall be used as follows:

(1)       Evaluation of the Early Childhood Education and Development Initiatives, including the ongoing review of quality child care efforts and child care providers' progress in preparing children to be ready to enter school and succeed.

(2)       Continuation of technical assistance to local partnerships in data collection and evaluation.

(3)       No more than five percent (5%) shall be used for the contractor's administrative overhead.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson, Baddour

Development of More at four Pilot Program

SECTION 21.76B.(a)  Of the funds appropriated to the Department of Health and Human Services the sum of six million four hundred fifty-six thousand five hundred dollars ($6,456,500) in each year of the 2001-2003 fiscal biennium shall be used to develop and implement "More At Four", a voluntary prekindergarten pilot program for at-risk four-year-olds. The Department of Health and Human Services, in consultation with the Department of Public Instruction, shall develop "More At Four" for four-year-old children in North Carolina to ensure that all children have an opportunity to succeed in kindergarten.

SECTION 21.76B.(b)  The Department of Health and Human Services and the Department of Public Instruction shall establish the "More At Four" Pre-K Task Force to oversee development and implementation of the pilot program. The membership shall include:

(1)       Parents of at-risk children.

(2)       Representatives with expertise in early childhood development.

(3)       Classroom teachers who are certified in early childhood education.

(4)       Representatives of the private not-for-profit and for-profit child care providers in North Carolina.

(5)       Employees of the Department of Health and Human Services who are knowledgeable in the areas of early childhood development, current State and federally funded efforts in child development, and providing child care.

(6)       Representatives of local Smart Start partnerships.

(7)       Representatives of local school administrative units.

(8)       Representatives of Head Start prekindergarten programs in North Carolina.

(9)       Employees of the Department of Public Instruction.

SECTION 21.76B.(c)  The Department of Health and Human Services and the Department of Public Instruction, under the guidance of the Task Force, shall develop and implement the "More At Four" pilot prekindergarten program for at-risk four-year-olds who are at risk of failure in kindergarten. The pilot shall be distributed geographically to ensure adequate representation of the diverse areas of the State, including underserved areas. The goal of the program shall be to provide quality prekindergarten services 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, the Department of Public Instruction, and the Task Force and may consider the "More At Four" Pre-K Task Force recommendations. 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 have never been served in a formal early education program such as child care, public or private preschool, Head Start, Early Head Start, early intervention programs or other such programs, who demonstrate educational needs on the basis of a prekindergarten assessment, and who are eligible to enter kindergarten the next school year.

(3)       A curriculum or several curricula that are recommended by the Task Force. The Task Force may consider curricula used by established prekindergarten programs such as WINGS, Bright Beginnings, and others. 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 pre- and post-assessment of children 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. A process and system for reimbursing providers that builds upon the existing child care subsidy reimbursement system.

(7)       A system built upon existing local school boards and systems, private child care providers, and other entities who 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, 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)     Collaboration with State agencies and other organizations. The Department of Health and Human Services, the Department of Public Instruction, and the Task Force shall collaborate with State agencies and other organizations such as the North Carolina Partnership for Children, Inc., in the design and implementation of the pilot.

(13)     Consideration of the reallocation of existing funds. In order to maximize current funding and resources, the Department of Health and Human Services, 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.

(14)     Recommendations for long-term organizational placement and administration of the program.

SECTION 21.76B.(d)  In development of the "More At Four" pilot, the Department of Health and Human Services, in consultation with the Department of Public Instruction and the Task Force, shall:

(1)       Contract with an independent research organization, outside the Department of Health and Human Services and the Department of Public Instruction, with proven expertise in evaluation of prekindergarten programs, for the design of an evaluation component. The evaluation component shall facilitate longitudinal review of the program and child-specific outcomes to include, at a minimum, participants’ readiness for kindergarten, percentage of participants scoring at or above grade level on the third grade end-of-grade test, and high school graduation rates.

(2)       Collaborate in the development of a system to collect and maintain child-specific information to provide for the long-term evaluation of the pilot. The system shall be developed in a manner which builds upon existing State and local systems and which facilitates the interface with the N.C. Student Information Management System.

SECTION 21.76B.(e)  State funds appropriated under this act for the "More At Four" pilot program shall not supplant current expenditures by counties, local partnerships, or other recipients of State and federal funds, allocated and expended on behalf of young children.

SECTION 21.76B.(f)  In order to maximize and coordinate funding for prekindergarten programs for four-year-olds with demonstrated educational needs, the Department of Health and Human Services, the Department of Public Instruction, and the Task Force shall identify and make recommendations on the reallocation of funds from existing State and local programs providing prekindergarten related care and services, including child care subsidies. All potential funding sources, including federal as well as State-funded efforts, shall be identified.

SECTION 21.76B.(g)  The Department of Health and Human Services, the Department of Public Instruction, and the Task Force shall report by January 1, 2002, and May 1, 2002, to the Joint Legislative Commission on Governmental Operations, the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Health and Human Services, and the House of Representatives Appropriations Subcommittee on Health and Human Services on the progress in complying with this section. A final report along with recommendations for changes or expansion of the program shall be presented to the 2003 General Assembly.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Consolidation and Transfer of Program Funds in the Division of Services for the Blind

SECTION 21.77.  The Division of Services for the Blind may consolidate the operating budgets for the Medical Eye Care Program and the Independent Living Services Program.  The Division shall continue to provide all services currently provided by the Medical Eye Care Program and the Independent Living Services Program.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Eligibility for Vocational Rehabilitation and Independent living services

SECTION 21.78.(a)  The Department of Health and Human Services shall compare the income eligibility standards for Vocational Rehabilitation and Independent Living Services to the income eligibility standards for Vocational Rehabilitation and Independent Living Services in other states.

SECTION 21.78.(b)  The Department of Health and Human Services shall develop a plan for maximizing resources for Independent Living Services to ensure that services are targeted to the most financially needy persons.

SECTION 21.78.(c)  The Department of Health and Human Services shall develop a plan for maximizing resources for Vocational Rehabilitation Services to ensure services are provided for low-income persons, the developmentally disabled, and Work First recipients who otherwise qualify for Vocational Rehabilitation Services.

SECTION 21.78.(d)  The Department of Health and Human Services shall report on the activities required by this section no later than March 1, 2002, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

MAXIMIZATION OF RECEIPTS FOR EARLY INTERVENTION PROGRAMS

SECTION 21.79. The Department of Health and Human Services, Division of Public Health, area mental health, developmental disabilities, and substance abuse services programs, and local health departments shall maximize receipts for the evaluation and services provided by the Developmental Evaluation Centers and through Early Intervention programs.  The Division shall maximize receipts from Health Choice, Medicaid, and other third-party payers.  All receipts collected shall remain within the Division and shall be used to offset appropriations for operations of the Developmental Evaluation Centers and Early Intervention services.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Create Office of Education Services

SECTION 21.80.(a)  G.S. 143B-146.22 is repealed.

SECTION 21.80.(b)  The Division of Early Intervention and Education is dissolved and an Office of Education Services is created within the Department of Health and Human Services.  The purpose of this office is to manage the Schools for the Deaf, the Governor Morehead School for the Blind, and their preschool components.  The Office shall have a Superintendent and appropriate staff to manage these schools.  The purpose of the Office is to improve student academic and postsecondary outcomes and to strengthen collaborative relationships with local education agencies and with the State Board of Education.

SECTION 21.80.(c)  The Early Intervention program, including all positions and the corresponding State appropriations, federal funds, and other funds that were in the Early Intervention program as of January 1, 2001, are transferred from the Division of Early Intervention and Education to the Division of Public Health, Women’s and Children’s Health Section.

SECTION 21.80.(d)  The Developmental Evaluation Centers, including all positions and the corresponding State appropriations, federal funds, and other funds, are transferred from the Division of Early Intervention and Education to the Division of Public Health, Women’s and Children’s Health Section.

SECTION 21.80.(e)  The Governor Morehead School preschool program, including all positions and the corresponding State appropriations, federal funds, and other funds, is transferred from the Division of Early Intervention and Education to the Governor Morehead School.

SECTION 21.80.(f)  The Department of Health and Human Services shall make the necessary organization changes effective immediately and the budget adjustments by October 1, 2001.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

CLOSURE OF CENTRAL NORTH CAROLINA SCHOOL FOR THE DEAF AT GREENSBORO

SECTION 21.81.(a)  G.S. 143B-146.21(b) and (c) reads as rewritten:

"(b)      The Secretary of Health and Human Services shall adopt policies and offer training opportunities to ensure that personnel who provide direct services to children in the three State schools for the deaf become proficient in sign language within two years of their initial date of employment or within two years of the effective date of this act, whichever occurs later. This subsection shall not apply to preschool personnel in any oral, auditory, or cued speech preschool.

(c)       The Department of Public Instruction, the Board of Governors of The University of North Carolina, and the State Board of Community Colleges shall offer and communicate the availability of professional development opportunities, including those to improve sign language skills, to the personnel assigned to the State's residential schools, particularly the Governor Morehead School and the three schools for the deaf."

SECTION 21.81.(b)  G.S. 143B-216.40 reads as rewritten:

"§ 143B-216.40.  Establishment; operations.

There are established, and there shall be maintained, the following schools for the deaf: the Eastern North Carolina School for the Deaf at Wilson (K-12); the Central North Carolina School for the Deaf at Greensboro (K-8),(K-12) and the North Carolina School for the Deaf at Morganton (K-12). The Department of Health and Human Services shall be responsible for the operation and maintenance of the schools.

The Board of Directors of the North Carolina Schools for the Deaf shall advise the Department and shall adopt rules and regulations concerning the schools as provided in G.S. 115C-124 and 143B-173."

SECTION 21.81.(c)  G.S. 143B-146.2(a) reads as rewritten:

"(a)      The Governor Morehead School and the three schools for the deaf shall participate in the ABC's Program. The Secretary, in consultation with the General Assembly and the State Board, may designate other residential schools that must participate in the ABC's Program. The primary goal of the ABC's Program is to improve student performance. The Program is based upon an accountability, recognition, assistance, and intervention process in order to hold each participating school, its superintendent, and the instructional personnel accountable for improved student performance in that school."

SECTION 21.81.(d)  G.S. 143B-216.32(a) reads as rewritten:

"(a)      The Council for the Deaf and the Hard of Hearing shall consist of 23 members. Fifteen members shall be members appointed by the Governor. Three members appointed by the Governor shall be persons who are deaf and three members shall be persons who are hard of hearing. One appointment shall be an educator who trains deaf education teachers and one appointment shall be an audiologist licensed under Article 22 of Chapter 90 of the General Statutes. Three appointments shall be parents of deaf or hard of hearing children including one parent of a student in a residential school; one parent of a student in a preschool program; and one parent of a student in a mainstream education program, with each at least one parent coming from a different each region of the three North Carolina schools for the deaf regions. One member appointed by the Governor shall be recommended by the President of the North Carolina Association of the Deaf; one member shall be recommended by the President of the North Carolina Pediatric Society; one member shall be recommended by the President of the North Carolina Registry of Interpreters for the Deaf; and one member shall be nominated by the Superintendent of Public Instruction. One member shall be appointed from the House of Representatives by the Speaker of the House of Representatives and one member shall be appointed from the Senate by the President Pro Tempore of the Senate. The Secretary of Health and Human Services shall appoint six members as follows: one from the Division of Vocational Rehabilitation, one from the Division of Aging, one from the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, one from the Division of Social Services, one from a North Carolina Chapter of SHHH (Self Help for the Hard of Hearing), and one from SPEAK (Statewide Parents' Education and Advocacy for Kids)."

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Residential Schools for the Deaf

SECTION 21.82.(a)  The Department of Health and Human Services shall assess the educational needs of the current students at the North Carolina School for the Deaf in Morganton and the Eastern North Carolina School for the Deaf in Wilson. In doing so, the Department shall identify resources needed to educate these children within the public school system or the North Carolina Schools for the Deaf and prepare an educational plan for each student. The Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the Office of Education Services, and the Department of Public Instruction shall work together in the development of these plans for students.

SECTION 21.82.(b)  The Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the Office of Education Services, and the Department of Public Instruction shall develop a plan for those children who are seriously emotionally disturbed and prepare plans to place them in appropriate settings.

SECTION 21.82.(c)  The Department of Health and Human Services shall report on or before March 15, 2002, 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 activities under this section.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

PRESCHOOL PROGRAMS FOR THE DEAF

SECTION 21.83.  Effective October 1, 2001, the Department of Health and Human Services shall transition the children at the State-operated preschool programs for the deaf to other preschool services.  The State-operated preschool sites shall cease to operate after that date.  The Department of Health and Human Services, the Division of Public Health, the Office of Education Services, the Division of Child Development, and the Department of Public Instruction shall develop a transition plan for the appropriate placement of the children located at these preschool sites.  The transition plan shall include an assessment of the available resources to meet the needs of the children.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

Early Intervention pilots

SECTION 21.84.(a)  The Department of Health and Human Services, Division of Public Health shall not expand the Student Information Management System pilot program statewide during the 2001-2002 fiscal year.  The Department shall maintain, evaluate, and improve the three pilot projects implemented in the 2000-2001 fiscal year, and provide a report on the status of the system to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division by October 1, 2001.  The report shall include the status of the operations of the database, a plan for statewide expansion, and the costs associated with the expansion.

SECTION 21.84.(b)  The Department of Health and Human Services shall not expand the regional interdisciplinary pilots during the 2001-2002 fiscal year.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

EVALUATION OF EARLY INTERVENTION SYSTEM

SECTION 21.85.(a)  The Department of Health and Human Services, Division of Public Health, shall determine the reasons why children are waiting for evaluation services provided by the Developmental Evaluation Centers.  The Division shall develop an action plan to reduce the waiting period for evaluation services.

SECTION 21.85.(b)  The Department of Health and Human Services, Division of Public Health, shall determine the reasons why children and their families are waiting for services that follow the evaluation process. The Division shall identify the specific services that children are waiting for and develop a plan to address the waiting period.

SECTION 21.85.(c)  The Department of Health and Human Services, Division of Public Health, shall assess ways in which to create efficiencies among the therapies that are provided within the Early Intervention Program, Children With Special Health Services program, and other programs.  The Division shall also evaluate ways to combine early intervention services provided by the Developmental Evaluation Centers, regional therapists, local health departments, and area mental health, developmental disabilities, and substance abuse authorities to gain efficiencies.

SECTION 21.85.(d)  Not later than December 1, 2001, the Department of Health and Human Services 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 assessment and plans of action for all of the above. The Department shall present a final report on the implementation of this section not later than April 1, 2002.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

IMMUNIZATION PROGRAM RESTITUTION POLICY

SECTION 21.86.(a)  Part 2 of Article 6 of Chapter 130A of the General Statutes is amended by adding the following new section to read:

"§ 130A-158. Restitution required when vaccine spoiled due to provider negligence.

Immunization program providers shall be liable for restitution to the State for the cost of replacement vaccine when vaccine in the provider's inventory has become spoiled or unstable due to the provider's negligence and unreasonable failure to properly handle or store the vaccine."

SECTION 21.86.(b)  This section is effective when it becomes law.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

IMMUNIZATION PROGRAM FUNDING

SECTION 21.87.(a)  Of the funds appropriated in this act to the Department of Health and Human Services for childhood immunization programs for positions, operating support, equipment, and pharmaceuticals, the sum of up to one million dollars ($1,000,000) for the 2001-2002 fiscal year and the sum of one million dollars ($1,000,000) for the 2002-2003 fiscal year may be used for projects and activities that are also designed to increase childhood immunization rates in North Carolina.  These projects and activities shall include the following:

(1)       Outreach efforts at the State and local levels to improve service delivery of vaccines. Outreach efforts may include educational seminars, media advertising, support services to parents to enable children to be transported to clinics, longer operating hours for clinics, and mobile vaccine units; and

(2)       Continued development of an automated immunization registry.

SECTION 21.87.(b)  Funds authorized to be used for immunization efforts under subsection (a) of this section shall not be used to fund additional State positions  in the Department of Health and Human Services or contracts, except for contracts to develop an automated immunization registry or with local health departments for outreach.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Rand, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

PRESCRIPTION DRUG ASSISTANCE PROGRAM

SECTION 21.88. Of the funds appropriated in this act to the Department of Health and Human Services, the sum of five hundred thousand dollars ($500,000) for the 2001-2002 fiscal year and the sum of five hundred thousand dollars ($500,000) for the 2002-2003 fiscal year shall be used to pay the cost of outpatient prescription drugs for persons:

(1)       Over the age of 65 years and not eligible for full Medicaid benefits;

(2)       Whose income is not more than one hundred fifty percent (150%) of the federal poverty level; and

(3)       Who have been diagnosed with cardiovascular disease or diabetes.

These funds shall be used to pay the cost of outpatient prescription drugs for the treatment of cardiovascular disease or diabetes. Payment shall be not more than the Medicaid cost including rebates. The Department shall develop criteria to maximize the efficient and effective distribution of these drugs.

 

Requested by:            Senators Martin of Guilford, Dannelly, Metcalf, Purcell, Wellons, Plyler, Odom, Lee; Representatives Earle, Nye, Baddour, Esposito, Easterling, Oldham, Redwine, Thompson

ADOLESCENT PREGNANCY PREVENTION INITIATIVES

SECTION 21.89.(a)  The title of Part 6 of Article 5 of Chapter 130A of the General Statutes reads as rewritten:

"Part 6. Adolescent Teen Pregnancy Prevention Projects.Prevention."

SECTION 21.89.(b)  G.S. 130A-131.15 is repealed.

SECTION 21.89.(c)  Part 6 of Article 5 of Chapter 130A of the Gen