GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S 3
SENATE BILL 1115
Appropriations/Base Budget Committee Substitute as amended Adopted 6/18/02
As amended by
Pensions & Retirement and Aging Committee 6/18/02
Third Edition Engrossed 6/19/02
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Short Title: Modify Appropriations Act of 2001. |
(Public) |
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Sponsors: |
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Referred to: |
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May 29, 2002
A BILL TO BE ENTITLED
AN ACT to MODIFY THE CURRENT OPERATIONS APPROPRIATIONS ACT OF 2001 AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.
The General Assembly of North Carolina enacts:
PART i. INtroduction and title of act
INTRODUCTION
SECTION 1.1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.
TITLE OF ACT
SECTION 1.2. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2002."
PART iI. current operations and expansion/general fund
Current Operations ‑ General Fund 2002‑2003
EDUCATION
Community Colleges System Office 24,994,200
Department of Public Instruction (69,395,534)
University of North Carolina ‑ Board of Governors
Appalachian State University (2,176,609)
East Carolina University
Academic Affairs (3,183,549)
Health Affairs (1,100,928)
Elizabeth City State University (530,995)
Fayetteville State University (753,395)
NC Agricultural and Technical University (1,503,208)
North Carolina Central University (1,155,082)
North Carolina School of the Arts (782,673)
North Carolina State University
Academic Affairs (6,998,183)
Agricultural Extension (894,718)
Agricultural Research (1,129,999)
University of North Carolina at Asheville (686,125)
University of North Carolina at Chapel Hill
Academic Affairs (5,089,577)
Health Affairs (3,802,211)
Area Health Education Centers (1,101,173)
University of North Carolina at Charlotte (2,727,423)
University of North Carolina at Greensboro (2,333,865)
University of North Carolina at Pembroke (593,820)
University of North Carolina at Wilmington (1,623,313)
Western Carolina University (1,489,649)
Winston‑Salem State University (937,810)
General Administration (2,063,801)
University Institutional Programs 29,317,706
Related Educational Programs (2,165,941)
North Carolina School of Science and Mathematics (434,306)
UNC Hospitals at Chapel Hill (970,076)
Total (16,910,721)
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary (10,069,221)
Division of Aging (1,169,750)
Division of Blind Services/Deaf/HH (643,013)
Division of Child Development (26,738,752)
Division of Education Services (4,024,077)
Division of Facility Services (782,705)
Division of Medical Assistance (27,736,891)
Division of Mental Health (35,600,524)
NC Health Choice (9,202,161)
Division of Public Health (15,591,367)
Division of Social Services (15,223,873)
Division of Vocation Rehabilitation (5,599,676)
Total (152,382,060)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services (4,819,849)
Department of Commerce
Commerce (10,349,674)
Commerce State‑Aid 4,930,500
NC Biotechnology Center (627,047)
Rural Economic Development Center (423,851)
Department of Environment and Natural Resources
Environment and Natural Resources (9,369,803)
Clean Water Management Trust Fund 0
Office of the Governor ‑ Housing Finance Agency (540,600)
Department of Labor (1,021,674)
JUSTICE AND PUBLIC SAFETY
Department of Correction (56,505,511)
Department of Crime Control and Public Safety (3,638,383)
Judicial Department (13,874,980)
Judicial Department ‑ Indigent Defense 2,255,611
Department of Justice (4,586,092)
Department of Juvenile Justice and Delinquency Prevention (16,254,846)
GENERAL GOVERNMENT
Department of Administration (5,658,873)
Office of Administrative Hearings (222,519)
Department of State Auditor (587,108)
Office of State Controller (919,891)
Department of Cultural Resources
Cultural Resources (4,794,666)
Roanoke Island Commission (151,222)
State Board of Elections 209,622
General Assembly (3,810,151)
Office of the Governor
Office of the Governor (504,595)
Office of State Budget and Management (342,836)
OSBM – Reserve for Special Appropriations 0
Department of Insurance
Insurance (1,451,366)
Insurance – Volunteer Safety Workers' Compensation (2,500,000)
Office of Lieutenant Governor (53,280)
Department of Revenue (4,972,725)
Rules Review Commission (25,981)
Department of Secretary of State (721,855)
Department of State Treasurer
State Treasurer (461,870)
State Treasurer – Retirement for Fire and Rescue Squad Workers (5,248,601)
TRANSPORTATION
Department of Transportation (2,490,841)
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Reserve for Compensation Increases (4,247,868)
Reserve for State Health Plan (12,621,872)
Reserve for Teachers' and State Employees' Retirement
Rate Adjustment (142,000,000)
Merge Judicial, Legislative and Teachers' &
State Employees' Retirement Systems (7,575,940)
Payroll Adjustment Reserve (36,500,000)
Reserve for Employee Severance Compensation 20,000,000
Contingency and Emergency 5,000,000
Reserve for Salary Adjustments 0
Implementation of Recommendations of
Governor's Efficiency Commission (25,000,000)
Reserve for Information Technology Rate Adjustment (3,414,318)
Mental Health, Developmental Disabilities and
Substance Abuse Services Trust Fund 50,000,000
Reserve to Implement HIPPA 2,000,000
Reserve for Experience Step Salary Increase for Teachers
and Principals in Public Schools $51,937,267
Debt Service
General Debt Service (98,105,542)
Federal Reimbursement 0
TOTAL CURRENT OPERATIONS ‑ GENERAL FUND (563,757,345)
Requested by: Senators Plyler, Odom, Lee
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) Section 2.2(a) of S.L. 2001‑424 is repealed. The General Fund availability used in developing the 2002‑2003 fiscal year budget is shown below:
2002‑2003
Revenues Based on Existing Tax Structure 12,738,200,000
Nontax Revenues
Investment Income 115,300,000
Judicial Fees 111,300,000
Disproportionate Share 107,000,000
Insurance 46,600,000
Other Nontax Revenues 98,900,000
Highway Trust Fund Transfer 172,400,000
Highway Fund Transfer 15,300,000
Subtotal Nontax Revenues 666,800,000
Subtotal General Fund Availability 13,405,000,000
Other Adjustments to Availability: 2002 Session
IRC Conformity (SB 1292 – Includes Pensions
And Education Changes, Estate Tax Credit,
Accelerated Depreciation) 15,800,000
Delay 2001 Tax Breaks (SB 1292 ‑ Standard
Deduction/Marriage Penalty, Child Tax Credit) 51,700,000
Suspend Reimbursements to Local Governments with
Hold Harmless Provision (SB 1292) 270,000,000
Project Tax Collect 61,937,267
Highway Trust Fund – recurring inflationary adjustment 80,000,000
Highway Trust Fund Transfer – one‑time transfer 125,000,000
Tobacco Settlement Trust Funds – divert Master
Settlement Agreement receipts for one year
($40 million from each fund) 120,000,000
Hurricane Floyd Disaster Reserve 100,000,000
Credit to Savings Reserve Account (14,896,335)
Transfer of Cash from Trust and Special Funds 8,534,164
Adjustment to Transfer from Insurance Regulatory Fund (851,366)
Increase Collection Rates for Offender Fees 1,160,000
Reimbursement for Unauthorized Substance Tax Division,
Department of Revenue (SB 1292) 886,683
Fee Increases (SB 1292) 25,434,311
Subtotal Other Adjustments to Availability: 2002 Session 844,704,724
Total General Fund Availability 14,249,704,724
SECTION 2.2.(b) Effective July 1, 2002, cash balances remaining in special funds on June 30, 2002, 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 2002‑2003 fiscal year.
Fund Amount Transferred
Department of Agriculture and Consumer Services
Budget Code 23700, Fund Code 2103 (Livestock
Acquisition Fund) 300,000
Budget Code 23701, Fund Code 2201 (Warehouse
Investment Fund) 225,000
Budget Code 53750, Fund Code 5190 (State Fair
Reserves and Transfers) 250,000
Budget Code 63700, Fund Code 6902 (Reforestation Fund) 23,915
Budget Code 63700, Fund Code 6105 (Forest Management
Reserve) 50,000
Department of Environment and Natural Resources
Budget Code 64302, Fund Code 6710 (Natural Heritage
Trust Fund) 3,287,582
Budget Code 24308, Fund Code 2525 (Neuse Animal Waste
Cost Share) 366,335
Department of Labor
Budget Code 23800, Fund Code 2422 (Pre‑Apprenticeship‑PBC) 491,332
Department of Correction
Budget Code 24502 (Inmate Canteen/Welfare Fund) 500,000
Office of the State Controller
Budget Code 24172 (Special Reserve Account) 1,300,000
SECTION 2.2.(c) Notwithstanding G.S. 113‑36(d), two hundred twenty thousand dollars ($220,000) of the cash balance remaining in the Bladen Lakes State Forest Fund (Budget Code 24300, Fund Code 2221) on July 1, 2002, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers). An additional two hundred twenty thousand dollars ($220,000) shall be transferred on April 1, 2003. These funds shall be used to support General Fund appropriations for the 2002‑2003 fiscal year.
SECTION 2.2.(d) Section 2.2(f) of S.L. 2001‑424 reads as rewritten:
"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.
one million five hundred thousand dollars ($1,500,000), effective July 1, 2002,
for the 2002-2003 fiscal year. Of the one million five hundred thousand dollar
($1,500,000) increase for the 2002-2003 fiscal year, five hundred thousand
dollars ($500,000) is recurring. "
SECTION 2.2.(f) The General Assembly finds that, as anticipated in the legislation that created the Hurricane Floyd Reserve Fund, S.L. 1999‑463, savings were effected where the total amounts appropriated in that act were not required to provide the necessary and appropriate relief and assistance from the effects of Hurricane Floyd. Therefore, effective July 1, 2002, the sum of one hundred million dollars ($100,000,000) shall be transferred from the Reserve for Disaster Relief, Budget Code 13017, a restricted reserve, to the General Fund. The Director of the Budget may use any funds available for expenditure for the 2002‑2003 fiscal year to ensure that sufficient funds are available to meet all outstanding obligations associated with disaster relief and recovery from Hurricane Floyd.
SECTION 2.2.(g) When the Highway Trust Fund was created in 1989, the revenue from the sales tax on motor vehicles was transferred from the General Fund to the Highway Trust Fund. To offset this loss of revenue from the General Fund, the Highway Trust Fund was required to transfer one hundred seventy million dollars ($170,000,000) to the General Fund each year, an amount equal to the revenue in 1989 from the sales tax on motor vehicles. This transfer did not, however, make the General Fund whole after the transfer of the sales tax revenue because no provision has been made to adjust the amount for the increased volume of transactions and increased vehicle prices. The additional eighty million dollars ($80,000,000) transferred from the Highway Trust Fund to the General Fund by this act is an effort to recover a portion of the sales tax revenues that would have gone to the General Fund over the last 13 years.
SECTION 2.2.(h) Notwithstanding G.S. 105‑187.9(b)(1), the sum to be transferred under that subdivision for the 2002‑2003 fiscal year and for the 2003‑2004 fiscal year is two hundred fifty million dollars ($250,000,000).
SECTION 2.2.(i) There is transferred from the Highway Trust Fund to the General Fund the sum of one hundred twenty‑five million dollars ($125,000,000) for the 2002-2003 fiscal year. It is the intent of the General Assembly that the Highway Trust Fund shall be held harmless because of this transfer. The General Assembly shall transfer from the General Fund back to the Highway Trust Fund during the next five years including interest at the net rate of return generated by the State Treasurer's Short Term Investment Fund.
SECTION 2.2.(j) The General Assembly finds that over the last two fiscal years, the cost of the Medicaid program has increased over a billion dollars. The downturn in the economy has caused an unforeseeable increase in the number of persons eligible for the program. Even with the significant expansion funds appropriated for the increased costs, transfers of funds to meet obligations for the 2001‑2002 fiscal year, and significant cost‑savings measures imposed by the General Assembly and the Department of Health and Human Services, Medicaid will still need an additional one hundred nine million dollars ($109,000,000) next year to cover increased costs.
Notwithstanding G.S. 143‑16.4(a2), of the funds credited to the Tobacco Trust Account from the Master Settlement Agreement pursuant to Section 6(2) of S.L. 1999‑2 during the 2002‑2003 fiscal year, the sum of forty million dollars ($40,000,000) shall be transferred from the Department of Agriculture and Consumer Services, Budget Code 23703 (Tobacco Trust Fund) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2002‑2003 fiscal year.
Notwithstanding G.S. 143‑16.4(a1), of the funds credited to the Health Trust Account from the Master Settlement Agreement pursuant to Section 6(2) of S.L. 1999‑2 during the 2002‑2003 fiscal year, the sum of forty million dollars ($40,000,000) shall be transferred from the Department of State Treasurer, Budget Code 23460 (Health and Wellness Trust Fund) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2002‑2003 fiscal year.
Notwithstanding G.S. 143‑86.30(c), the Health and Wellness Trust Fund Commission may transfer up to eighteen million dollars ($18,000,000) from the Fund Reserve created in G.S. 143‑86.30 to the Health and Wellness Trust Fund nonreserved funds to be expended in accordance with G.S. 143‑86.30(d) during the 2002‑2003 fiscal year.
Pursuant to Section 2(b) of S.L. 1999‑2, forty million dollars ($40,000,000) of the fifty percent (50%) of the annual installment payment to the North Carolina State Specific Account otherwise transferred and assigned to The Golden L.E.A.F. (Long‑Term Economic Advancement Foundation), Inc., during the 2002‑2003 fiscal year is transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2002‑2003 fiscal year. The Attorney General shall take all necessary actions to notify the court in the action entitled State of North Carolina v. Philip Morris Incorporated, et. al., 98 CVS 14377, in the General Court of Justice, Superior Court Division, Wake County, North Carolina, and the administrators of the State Specific Account established under the Master Settlement Agreement of this action by the General Assembly redirecting this payment.
SECTION 2.2.(k) The funds appropriated in this act from the Insurance Regulatory Fund include an increase of six hundred thousand dollars ($600,000) in recurring funds from the amount appropriated in S.L. 2001‑424. These funds shall be used to pay for the costs and expenses incurred by the Department of Justice in the 2002‑2003 fiscal year and subsequent fiscal years in representing the Department of Insurance in its regulation of the insurance industry and other related programs and industries in this State that fall under the jurisdiction of the Department of Insurance.
SECTION 2.2.(l) G.S. 7A‑11 reads as rewritten:
"§ 7A‑11. Clerk of the Supreme Court; salary; bond; fees; oath.
The clerk of the Supreme Court
shall be appointed by the Supreme Court to serve at its pleasure. The annual
salary of the clerk shall be fixed by the Administrative Officer of the Courts,
subject to the approval of the Supreme Court. The clerk may appoint assistants
in the number and at the salaries fixed by the Administrative Officer of the
Courts. The clerk shall perform such duties as the Supreme Court may assign,
and shall be bonded to the State, for faithful performance of duty, in the same
manner as the clerk of the superior court, and in such amount as the
Administrative Officer of the Courts shall determine. He shall adopt a seal of
office, to be approved by the Supreme Court. A fee bill for services rendered
by the clerk shall be fixed by rules of the Supreme Court, and all such fees
shall be remitted to the State treasury, except that charges to litigants
for the reproduction of appellate records and briefs shall be fixed and
administered as provided by rule of the Supreme Court. treasury. The
operations of the Clerk of the Supreme Court shall be subject to the oversight
of the State Auditor pursuant to Article 5A of Chapter 147 of the General
Statutes. Before entering upon the duties of his office, the clerk shall take
the oath of office prescribed by law."
SECTION 2.2.(m) G.S. 7A‑20(b) reads as rewritten:
"(b) Subject to approval
of the Supreme Court, the Court of Appeals shall promulgate from time to time a
fee bill for services rendered by the clerk, and such fees shall be remitted to
the State Treasurer, except that charges to litigants for the reproduction
of appellate records and briefs shall be fixed and administered as provided by
rule of the Supreme Court. Treasurer. The operations of the Court of
Appeals shall be subject to the oversight of the State Auditor pursuant to
Article 5A of Chapter 147 of the General Statutes."
PART iII. 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 fiscal year ending June 30, 2003, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Fund appropriations for the 2002‑2003 fiscal year.
Current Operations ‑ Highway Fund 2002‑2003
Administration (362,232)
Operations –
Construction and Maintenance
a. Construction
(01) Primary Construction –
(02) Secondary Construction (1,887,000)
(03) Urban Construction –
(04) Access and Public Service Roads –
(05) Contingency Construction 5,000,000
(06) Spot Safety Construction –
b. State Funds to Match Federal Highway Aid –
c. State Maintenance 17,823,411
d. Ferry Operations –
e. Capital Improvements –
f. State Aid to Municipalities (1,887,000)
g. State Aid for Public Transportation and Railroads 17,350,000
h. OSHA – State –
Governor's Highway Safety Program –
Division of Motor Vehicles –
Reserves and Transfers (6,039,551)
GRAND TOTAL HIGHWAY FUND $ 29,997,628
highway fund availability statement
SECTION 3.2. The Highway Fund appropriations availability used in developing modifications to the 2002‑2003 Highway Fund budget contained in this act is shown below:
2002‑2003
Beginning Credit Balance $41,300,000
Estimated Revenue 1,276,600,000
TOTAL HIGHWAY FUND AVAILABILITY $1,317,900,000
PART iv. highway trust fund appropriations
highway trust fund appropriations
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 fiscal year ending June 30, 2003, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Trust Fund appropriations for the 2002‑2003 fiscal year.
Current Operations and Expansion ‑ Highway Trust Fund 2002‑2003
Intrastate System (156,082,527)
Secondary Roads (17,736,555)
Urban Loops (63,113,273)
Aid to Municipalities (16,376,698)
Program Administration (11,534,947)
Transfer to General Fund 207,400,000
Grand Total/Highway Trust Fund (57,444,000)
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2003, according to the following schedule:
COMMUNITY SERVICES BLOCK GRANT
01. Community Action Agencies $ 15,266,973
02. Limited Purpose Agencies 848,165
03. Department of Health and Human Services
to administer and monitor
the activities of the
Community Services Block Grant 848,165
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 16,963,303
SOCIAL SERVICES BLOCK GRANT
01. County departments of social services $ 27,095,289
(Transfer from TANF ‑ $4,500,000)
02. Allocation for in‑home services provided
by county departments of
social services 2,101,113
03. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 3,234,601
04. Division of Services for the Blind 3,105,711
05. Division of Facility Services 426,836
06. Division of Aging ‑ Home and Community
Care Block Grant 1,840,234
07. Child Care Subsidies 3,000,000
08. Division of Vocational Rehabilitation ‑
United Cerebral Palsy 71,484
09. State administration 1,693,368
10. Child Medical Evaluation Program 238,321
11. Adult day care services 2,155,301
12. Comprehensive Treatment Services
Program 422,003
13. Department of Administration
for the N.C. State Commission of Indian Affairs
In‑Home Services Program for the Elderly 203,198
14. Division of Vocational Rehabilitation ‑
Easter Seals Society 116,779
15. UNC‑CH CARES Program for training and
consultation services 247,920
16. Office of the Secretary ‑ Office of Economic
Opportunity for N.C. Senior Citizens'
Federation for outreach services to
low‑income elderly persons 41,302
17. Division of Social Services ‑ Child
Caring Agencies 1,500,000
18. Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services ‑ Developmentally
Disabled Waiting List for services 5,000,000
19. Transfer to Preventive Health Services Block
Grant for HIV/AIDS education, counseling, and
testing 145,819
20. Division of Facility Services –
Mental Health Licensure 213,128
TOTAL SOCIAL SERVICES BLOCK GRANT $ 52,852,407
LOW‑INCOME ENERGY BLOCK GRANT
01. Energy Assistance Programs $ 11,395,026
02. Crisis Intervention 6,598,934
03. Administration 2,459,510
04. Weatherization Program 3,457,189
05. Department of Administration ‑
N.C. State Commission of Indian Affairs 45,189
06. Heating Air Repair and Replacement Program 1,613,355
TOTAL LOW‑INCOME ENERGY BLOCK GRANT $ 25,569,203
MENTAL HEALTH SERVICES BLOCK GRANT
01. Provision of community‑based
services for severe and persistently
mentally ill adults $ 5,442,798
02. Provision of community‑based
services to children 2,513,141
03. Comprehensive Treatment Services
Program for Children 1,500,000
04. Administration 783,911
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 10,239,850
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
01. Provision of community‑based
alcohol and drug abuse services,
tuberculosis services, and services
provided by the Alcohol and Drug Abuse
Treatment Centers $ 15,401,711
02. Continuation of services for
pregnant women and women
with dependent children 8,069,524
03. Continuation of services to
IV drug abusers and others at risk
for HIV diseases 4,616,378
04. Provision of services to children
and adolescents 7,740,611
05. Juvenile Services ‑ Family Focus 851,156
06. Allocation to the Division of Public Health
for HIV/STD Risk Reduction Projects 383,980
07. Allocation to the Division of Public Health
for HIV/STD Prevention by County Health
Departments 209,576
08. Allocation to the Division of Public Health
for the Maternal and Child Health Hotline 37,779
09. Administration 2,596,307
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 39,907,022
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
01. Child care subsidies $149,801,334
02. Quality and availability initiatives 16,496,620
03. Administrative expenses 6,929,081
04. Transfer from TANF Block Grant for
child care subsidies 72,812,189
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $246,039,224
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
01. Work First Cash Assistance $129,396,275
02. Work First County Block Grants 92,018,855
03. Transfer to the Child Care and
Development Fund Block Grant
for child care subsidies 72,812,189
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 400,000
05. Allocation to the Division of Social
Services for staff development 75,000
06. Reduction of out‑of‑wedlock births 1,000,000
07. Business Process Reengineering
Project Reserve 325,000
08. Allocation to the Division of Public Health
for teen pregnancy prevention 600,000
09. Child Care Subsidies for TANF Recipients 26,621,241
10. County Child Protective Services,
Foster Care, and Adoption Workers 2,727,550
11. Transfer to Social Services Block Grant for
County Departments of Social Services for
Children's Services 4,500,000
12. Residential Substance Abuse Services
for Women With Children 1,475,142
13. Division of Social Services ‑
Administration 500,000
14. Child Welfare workers and services for
local departments of social services 7,654,841
15. Child Welfare Training 2,000,000
16. DSS Evaluation 500,000
17. SACWIS Payback 4,643,454
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $347,249,547
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
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 16,928,823
PREVENTIVE HEALTH SERVICES BLOCK GRANT
01. Statewide Health Promotion Programs $3,282,810
02. Rape Crisis/Victims' Services
Program ‑ Council for Women 197,112
03. Transfer from Social Services
Block Grant –
HIV/AIDS education, counseling, and
testing 145,819
04. Office of Minority Health 159,459
05. Administrative Costs 108,546
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $3,893,746
SECTION 5.1.(b) Decreases in Federal Fund Availability. – If the United States Congress reduces federal fund availability in the Social Services Block Grant below the amounts appropriated in this section, then the Department of Health and Human Services shall allocate these decreases giving priority first to those direct services mandated by State or federal law, then to those programs providing direct services that have demonstrated effectiveness in meeting the federally and State‑mandated services goals established for the Social Services Block Grant. The Department shall not include transfers from TANF for specified purposes in any calculations of reductions to the Social Services Block Grant.
If the United States Congress reduces the amount of TANF funds below the amounts appropriated in this section after the effective date of this act, then the Department shall allocate the decrease in funds after considering any underutilization of the budget and the effectiveness of the current level of services. Any TANF Block Grant fund changes shall be reported to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
Decreases in federal fund availability shall be allocated for the Maternal and Child Health and Preventive Health Services federal block grants by the Department of Health and Human Services after considering the effectiveness of the current level of services.
SECTION 5.1.(c) Increases in Federal Fund Availability. – Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended by the Department of Health and Human Services, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.
SECTION 5.1.(d) Changes to the budgeted allocations to the block grants appropriated in this act and new allocations from the block grants not specified in this act shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to the change and shall be reported immediately to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(e) The Department of Health and Human Services may allow no‑cost contract extensions for up to six months for nongovernmental grant recipients under the TANF Block Grant.
SECTION 5.1.(f) 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 2002‑2003 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an Abstinence Until Marriage Education Program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C‑81(e1)(4). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.
The Department of Health and Human Services shall contract for the follow‑up testing involved with the Newborn Screening Program. The Department may contract for these services with an entity within or outside of the State; however, the Department may only contract with an out‑of‑state entity if it can be demonstrated that there is a cost‑savings associated with contracting with the out‑of‑state entity. The contract amount shall not exceed twenty‑five thousand dollars ($25,000). The amount of the contract shall be covered by funds in the Maternal and Child Grant Block Grant.
SECTION 5.1.(g) The Department of Health and Human Services shall not use any funds appropriated in this section to develop or implement a Medical Child Care Pilot.
SECTION 5.1.(h) Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 5.1.(i) The sum of 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 2002‑2003 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 5.1.(j) The sum of one million four hundred seventy‑five thousand one hundred forty‑two dollars ($1,475,142) 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 2002‑2003 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, 2002, and March 1, 2003, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. These reports shall include all of the following:
(1) The number and location of additional beds created.
(2) The types of facilities established.
(3) The delineation of roles and responsibilities at the State and local levels.
(4) Demographics of the women served, the number of women served, and the cost per client.
(5) Demographics of the children served, the number of children served, and the services provided.
(6) Job placement services provided to women.
(7) A plan for follow‑up and evaluation of services provided with an emphasis on outcomes.
(8) Barriers identified to the successful implementation of the expansion.
(9) Identification of other resources needed to appropriately and efficiently provide services to Work First recipients.
(10) Other information as requested.
SECTION 5.1.(k) The sum of 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 2002‑2003 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.(l) 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 2002‑2003 fiscal year and the sum of four hundred twenty‑two thousand three dollars ($422,003) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2002‑2003 fiscal year shall be used to continue a Comprehensive Treatment Services Program for Children in accordance with Section 21.60 of S.L. 2001‑424, as amended.
SECTION 5.1.(m) 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 2002‑2003 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.(n) The sum of three hundred twenty‑five thousand dollars ($325,000) 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 2002‑2003 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.(o) 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.
Requested by: Senators Martin of Pitt, Weinstein, Plyler, Odom, Lee
SECTION 5.2.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2003, 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 13,100,000
04. Economic Development 8,710,000
05. Community Revitalization 13,500,000
06. State Technical Assistance 450,000
07. Housing Development 2,100,000
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 one hundred thousand dollars ($13,100,000) 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 one hundred thousand dollars ($2,100,000) 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.
Requested by: Senators Plyler, Odom, Lee
contingency and emergency fund allocations
SECTION 6.1. Section 6.3(a) of S.L. 2001‑424 reads as rewritten:
"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) ten million dollars
($10,000,000) 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.Fund; and
(4) The sum of five million dollars ($5,000,000) shall be used for the purposes set out in subdivisions (1) and (2) of this subsection or to settle legal disputes."
Requested by: Senators Plyler, Odom, Lee
use of overrealized general fund availability
SECTION 6.2. The Director of the Budget shall review General Fund availability at the end of each month for the 2002‑2003 fiscal year. If the actual availability for a month exceeds the availability anticipated by the General Assembly in this act for that month, the excess amount shall be credited to the Savings Reserve Account.
The Director of the Budget may use funds credited to the Savings Reserve Account pursuant to this section only to offset a decrease in availability during a month in which the actual availability is less that the availability anticipated by the General Assembly in this act for that month.
Requested by: Senators Plyler, Odom, Lee
Use of Savings Reserve to Balance Budget
SECTION 6.3.(a) G.S. 143‑15.3(b) prohibits the Director of the Budget from using funds in the Savings Reserve Account unless the use has been approved by an act of the General Assembly. The General Assembly hereby authorizes the Director of the Budget to use funds that were credited to the Savings Reserve Account on or before June 30, 2002, to the extent necessary to balance the State budget for the 2001‑2002 fiscal year and funds are hereby appropriated from the Savings Reserve Account for this purpose.
SECTION 6.3.(b) This section becomes effective June 30, 2002.
Requested by: Senators Plyler, Odom, Lee, Dalton, Lucas, Garrou, Rand
SECTION 6.4.(a) G.S. 143‑3.3(g) reads as rewritten:
"(g) Payroll Deduction for Payments to Certain Employees' Associations Allowed. – An employee of the State or any of its institutions, departments, bureaus, agencies or commissions, or any of its local boards of education or community colleges, who is a member of a domiciled employees' association that has at least 2,000 members, the majority of whom are employees of the State or public school employees, may authorize, in writing, the periodic deduction each payroll period from the employee's salary or wages a designated lump sum to be paid to the employees' association.
An employee of any local board of education who is a member of a domiciled employees' association that has at least 40,000 members, the majority of whom are public school teachers, may authorize in writing the periodic deduction each payroll period from the employee's salary or wages a designated lump sum or sums to be paid for dues and voluntary contributions for the employees' association.
The An authorization
under this subsection shall remain in effect until revoked by the
employee. A plan of payroll deductions pursuant to this subsection for
employees of the State and other association members shall become void if the
employees' association engages in collective bargaining with the State, any
political subdivision of the State, or any local school administrative unit.
This subsection does not apply to county or municipal governments or any local
governmental unit, except for local boards of education."
SECTION 6.4.(b) G.S. 135‑18.8 reads as rewritten:
"§ 135‑18.8. Deduction for payments to certain employees' or retirees' associations allowed.
Any member who is a member of a domiciled employees' or retirees' association that has at least 2,000 members, the majority of whom are active or retired employees of the State or public school employees, may authorize, in writing, the periodic deduction from the member's retirement benefits a designated lump sum to be paid to the employees' or retirees' association. The authorization shall remain in effect until revoked by the member. A plan of deductions pursuant to this section shall become void if the employees' or retirees' association engages in collective bargaining with the State, any political subdivision of the State, or any local school administrative unit.
Any member who is a member of a domiciled employees' or retirees' association that has at least 40,000 members, the majority of whom are active or retired public school teachers, may authorize, in writing, the periodic deduction from the member's retirement benefits a designated lump sum or sums to be paid for dues and voluntary contributions for the employees' or retirees' association. The authorization shall remain in effect until revoked by the member. A plan of deductions pursuant to this section shall become void if the employees' or retirees' association engages in collective bargaining with the State, any political subdivision of the State, or any local school administrative unit."
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
TEACHER SALARY SCHEDULES
SECTION 7.1.(a) Effective for the 2002‑2003 school year, the Director of the Budget shall transfer from the Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools for the 2002‑2003 fiscal year funds necessary to implement the teacher salary schedule set out in subsection (b) of this section, including funds for the employer's retirement and social security contributions and funds for annual longevity payments at one and one‑half percent (1.5%) of base salary for 10 to 14 years of State service, two and twenty‑five hundredths percent (2.25%) of base salary for 15 to 19 years of State service, three and twenty‑five hundredths percent (3.25%) of base salary for 20 to 24 years of State service, and four and one‑half percent (4.5%) of base salary for 25 or more years of State service, commencing July 1, 2002, for all teachers whose salaries are supported from the State's General Fund. These funds shall be allocated to individuals according to rules adopted by the State Board of Education. The longevity payment shall be paid in a lump sum once a year.
SECTION 7.1.(b) For the 2002‑2003 school year, the following monthly salary schedules shall apply to certified personnel of the public schools who are classified as teachers. The schedule contains 30 steps with each step corresponding to one year of teaching experience.
2002‑2003 Monthly Salary Schedule
Years of "A" NBPTS
Experience Teachers Certification
0 $2,525 N/A
1 $2,567 N/A
2 $2,611 N/A
3 $2,764 $3,096
4 $2,904 $3,252
5 $3,036 $3,400
6 $3,164 $3,544
7 $3,266 $3,658
8 $3,314 $3,712
9 $3,362 $3,765
10 $3,412 $3,821
11 $3,461 $3,876
12 $3,511 $3,932
13 $3,561 $3,988
14 $3,614 $4,048
15 $3,667 $4,107
16 $3,722 $4,169
17 $3,777 $4,230
18 $3,834 $4,294
19 $3,892 $4,359
20 $3,950 $4,424
21 $4,011 $4,492
22 $4,072 $4,561
23 $4,136 $4,632
24 $4,200 $4,704
25 $4,264 $4,776
26 $4,330 $4,850
27 $4,398 $4,926
28 $4,467 $5,003
29 $4,538 $5,083
30+ $4,538 $5,083
2002‑2003 Monthly Salary Schedule
Years of "M" NBPTS
Experience Teachers Certification
0 $2,778 N/A
1 $2,824 N/A
2 $2,872 N/A
3 $3,040 $3,405
4 $3,194 $3,577
5 $3,340 $3,741
6 $3,480 $3,898
7 $3,593 $4,024
8 $3,645 $4,082
9 $3,698 $4,142
10 $3,753 $4,203
11 $3,807 $4,264
12 $3,862 $4,325
13 $3,917 $4,387
14 $3,975 $4,452
15 $4,034 $4,518
16 $4,094 $4,585
17 $4,155 $4,654
18 $4,217 $4,723
19 $4,281 $4,795
20 $4,345 $4,866
21 $4,412 $4,941
22 $4,479 $5,016
23 $4,550 $5,096
24 $4,620 $5,174
25 $4,690 $5,253
26 $4,763 $5,335
27 $4,838 $5,419
28 $4,914 $5,504
29 $4,992 $5,591
30+ $4,992 $5,591
SECTION 7.1.(c) Certified public school teachers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers. Certified public school teachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers.
SECTION 7.1.(d) Effective for the 2002‑2003 school year, the first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "M" teachers. Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience. Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.
Certified psychologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified psychologists. Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.
SECTION 7.1.(e) Effective for the 2002‑2003 school year, speech pathologists who are certified as speech pathologists at the masters degree level and audiologists who are certified as audiologists at the masters degree level and who are employed in the public schools as speech and language specialists and audiologists shall be paid on the school psychologist salary schedule.
Speech pathologists and audiologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for speech pathologists and audiologists. Speech pathologists and audiologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for speech pathologists and audiologists.
SECTION 7.1.(f) Certified school nurses who are employed in the public schools as nurses shall be paid on the "M" salary schedule.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
school‑based administrator salary schedule
SECTION 7.2.(a) Effective for the 2002‑2003 school year, the Director of the Budget shall transfer from Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools for the 2002‑2003 fiscal year funds necessary to implement the salary schedule for school‑based administrators as provided in this section. These funds shall be used for State‑paid employees only.
SECTION 7.2.(b) The base salary schedule for school‑based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2002‑2003 fiscal year, commencing July 1, 2002, is as follows:
Principal and Assistant Principal Salary Schedules
Yrs of Assistant Prin I Prin II Prin III Prin IV
Exp Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,226 – – – –
5 $3,373 – – – –
6 $3,515 – – – –
7 $3,629 – – – –
8 $3,681 $3,681 – – –
9 $3,735 $3,735 – – –
10 $3,791 $3,791 $3,845 – –
11 $3,845 $3,845 $3,901 – –
12 $3,901 $3,901 $3,956 $4,015 –
13 $3,956 $3,956 $4,015 $4,074 $4,135
14 $4,015 $4,015 $4,074 $4,135 $4,197
15 $4,074 $4,074 $4,135 $4,197 $4,259
16 $4,135 $4,135 $4,197 $4,259 $4,324
17 $4,197 $4,197 $4,259 $4,324 $4,388
18 $4,259 $4,259 $4,324 $4,388 $4,456
19 $4,324 $4,324 $4,388 $4,456 $4,524
20 $4,388 $4,388 $4,456 $4,524 $4,596
21 $4,456 $4,456 $4,524 $4,596 $4,666
22 $4,524 $4,524 $4,596 $4,666 $4,737
23 $4,596 $4,596 $4,666 $4,737 $4,811
24 $4,666 $4,666 $4,737 $4,811 $4,886
25 $4,737 $4,737 $4,811 $4,886 $4,963
26 $4,811 $4,811 $4,886 $4,963 $5,042
27 $4,886 $4,886 $4,963 $5,042 $5,143
28 $4,963 $4,963 $5,042 $5,143 $5,246
29 $5,042 $5,042 $5,143 $5,246 $5,351
30 $5,143 $5,143 $5,246 $5,351 $5,458
31 $5,246 $5,246 $5,351 $5,458 $5,567
32 – $5,351 $5,458 $5,567 $5,678
33 – – $5,567 $5,678 $5,792
34 – – $5,678 $5,792 $5,908
35 – – – $5,908 $6,026
36 – – – $6,026 $6,147
37 – – – – $6,270
Principal and Assistant Principal Salary Schedules
Yrs of Prin V Prin VI Prin VII Prin VIII
Exp (44‑54) (55‑65) (66‑100) (101+)
14 $4,259 – – –
15 $4,324 – – –
16 $4,388 $4,456 – –
17 $4,456 $4,524 $4,666 –
18 $4,524 $4,596 $4,737 $4,811
19 $4,596 $4,666 $4,811 $4,886
20 $4,666 $4,737 $4,886 $4,963
21 $4,737 $4,811 $4,963 $5,042
22 $4,811 $4,886 $5,042 $5,143
23 $4,886 $4,963 $5,143 $5,246
24 $4,963 $5,042 $5,246 $5,351
25 $5,042 $5,143 $5,351 $5,458
26 $5,143 $5,246 $5,458 $5,567
27 $5,246 $5,351 $5,567 $5,678
28 $5,351 $5,458 $5,678 $5,792
29 $5,458 $5,567 $5,792 $5,908
30 $5,567 $5,678 $5,908 $6,026
31 $5,678 $5,792 $6,026 $6,147
32 $5,792 $5,908 $6,147 $6,270
33 $5,908 $6,026 $6,270 $6,395
34 $6,026 $6,147 $6,395 $6,523
35 $6,147 $6,270 $6,523 $6,653
36 $6,270 $6,395 $6,653 $6,786
37 $6,395 $6,523 $6,786 $6,922
38 $6,523 $6,653 $6,922 $7,060
39 – $6,786 $7,060 $7,201
40 – $6,922 $7,201 $7,345
41 – – $7,345 $7,492
SECTION 7.2.(c) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools, shall be determined in accordance with the following schedule:
Number of Teachers
Classification Supervised
Assistant Principal
Principal I Fewer than 11 Teachers
Principal II 11‑21 Teachers
Principal III 22‑32 Teachers
Principal IV 33‑43 Teachers
Principal V 44‑54 Teachers
Principal VI 55‑65 Teachers
Principal VII 66‑100 Teachers
Principal VIII More than 100 Teachers
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non‑State funds or the principal or teacher assistants.
The beginning classification for principals in alternative schools shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 7.2.(d) A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal. A principal or assistant principal shall also continue to receive any additional State‑funded percentage increases earned for the 1997‑1998, 1998‑1999, 1999‑2000, and the 2001‑2002 school year for improvement in student performance or maintaining a safe and orderly school.
SECTION 7.2.(e) Principals and assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
SECTION 7.2.(f) There shall be no State requirement that superintendents in each local school unit shall receive in State‑paid salary at least one percent (1%) more than the highest paid principal receives in State salary in that school unit: Provided, however, the additional State‑paid salary a superintendent who was employed by a local school administrative unit for the 1992‑93 fiscal year received because of that requirement shall not be reduced because of this subsection for subsequent fiscal years that the superintendent is employed by that local school administrative unit so long as the superintendent is entitled to at least that amount of additional State‑paid salary under the rules in effect for the 1992‑93 fiscal year.
SECTION 7.2.(g) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
(1) If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
(2) If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 7.2.(i) Participants in an approved full‑time Masters in School Administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the masters program. Certification of eligible full‑time interns shall be supplied to the Department of Public Instruction by the Principal Fellows Program or a school of education where the intern participates in a full‑time Masters in School Administration.
SECTION 7.2.(j) During the 2002‑2003 fiscal year, the placement on the salary schedule of an administrator with a one‑year provisional assistant principal's certificate shall be at the entry‑level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
SECTION 7.3. The State Board of Education may expend up to five hundred thousand dollars ($500,000) for the 2002‑2003 fiscal year from unexpended funds for certified employees' salaries to pay expenses related to pending litigation.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
SECTION 7.4. The State Board of Education shall allocate funds for children with disabilities on the basis of two thousand six hundred eighty‑six dollars and fifty cents ($2,686.50) per child for a maximum of 161,845 children for the 2002‑2003 school year. Each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) twelve and five‑tenths percent (12.5%) of the 2002‑2003 allocated average daily membership in the local school administrative unit.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
funds for academically gifted children
SECTION 7.5. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of eight hundred eighty‑eight dollars ($888.00) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2002‑2003 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit. The State Board shall allocate funds for no more than 53,075 children for the 2002‑2003 school year.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
FUNDS FOR THE TESTING AND IMPLEMENTATION OF THE NEW STUDENT INFORMATION SYSTEM
SECTION 7.6. Section 28.32 of S.L. 2001‑424 reads as rewritten:
"SECTION 28.32. The State Board of Education may transfer up to one million dollars ($1,000,000) in funds appropriated for the Uniform Education Reporting System for the 2001‑2002 fiscal year and up to one million dollars ($1,000,000) in funds appropriated for the Uniform Education Reporting System for the 2002‑2003 fiscal year to the Department of Public Instruction to lease or purchase equipment necessary for the testing and implementation of NC WISE, the new student information system in the public schools."
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
FUNDS TO IMPLEMENT THE ABCs OF PUBLIC EDucation
SECTION 7.7.(a) The State Board of Education shall use funds appropriated for State Aid to Local School Administrative Units for the 2002‑2003 fiscal year to provide incentive funding for schools that met or exceeded the projected levels of improvement in student performance during the 2001‑2002 school year, in accordance with the ABCs of Public Education Program. In accordance with State Board of Education policy:
(1) Incentive awards in schools that achieve higher than expected improvements may be up to:
a. One thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be up to:
a. Seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Three hundred seventy‑five dollars ($375.00) for each teacher assistant.
SECTION 7.7.(b) The State Board of Education may use funds appropriated to State Aid to Local School Administrative Units for assistance teams to low‑performing schools.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
revision of reading and writing assessments
SECTION 7.8. Of the funds appropriated to State Aid to Local School Administrative Units, the State Board of Education may use up to one million dollars ($1,000,000) for the 2002‑2003 fiscal year to revise the reading and writing assessments.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
FUNDS FOR INSTRUCTIONAL SUPPLIES
SECTION 7.9.(a) Section 28.39(a) of S.L. 2001‑424 applies only to funds appropriated for the 2001‑2002 fiscal year.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
SECTION 7.10. State funds appropriated for mentor pay shall be used only to provide mentors for employees who are in State‑funded positions and who are either (i) newly certified teachers in their first two years of employment as teachers or (ii) entry‑level instructional support personnel who have not previously been teachers and who are in their first year of employment as instructional support personnel.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
conversion of accumulated leave time
SECTION 7.11.(a) G.S. 115C‑302.1 reads as rewritten:
…
(c1) Conversion of
Leave. – Teachers may accumulate annual vacation leave days without any
applicable maximum until June 30 of each year. In order that only 30 days of
annual vacation leave carry forward to July 1, on June 30 of each year any
teacher or other personnel paid on the teacher salary schedule who has
accumulated more than 30 days of annual vacation leave shall:
(1) Convert to
either sick leave or to pay the excess accumulation that is the result of the
teacher having to forfeit annual vacation leave in order to attend required
workdays; and
(2) Convert to sick
leave the remaining excess accumulation.
Local boards of education shall
identify which days are accumulated due to the teacher forfeiting annual
vacation leave in order to attend required workdays. Actual payment for excess
accumulated annual vacation leave may be made after July 1.
(c2) Conversion of
Leave Upon Separation of Service. – Upon separation from service due to service
retirement, resignation, dismissal, reduction in force, or death, an employee
shall be paid in a lump sum for accumulated annual vacation leave not to exceed
a maximum of 30 days. Employees going onto term disability may exhaust annual
leave rather than be paid in a lump sum.
Any teacher or other personnel
paid on the teacher salary schedule who has more than 30 days of accumulated
annual vacation leave at the time the person retires shall:
(1) Convert to
either sick leave or to pay the excess accumulation that is the result of the
teacher having to forfeit annual vacation leave in order to attend required
workdays; and
(2) Convert to sick
leave the remaining excess accumulation which may be used for creditable
service at retirement in accordance with G.S. 135-4(e).
Local boards of education shall
identify which days are accumulated due to the teacher forfeiting annual
vacation leave in order to attend required workdays.
(c3) Teachers may accumulate annual vacation leave days without any applicable maximum until June 30 of each year. In order that only 30 days of annual vacation leave carry forward to July 1, on June 30 of each year any teacher or other personnel paid on the teacher salary schedule who has accumulated more than 30 days of annual vacation leave shall convert to sick leave the remaining excess accumulation.
Upon separation from service due to service retirement, resignation, dismissal, reduction in force, or death, an employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 30 days. In addition to the maximum of 30 days pay for accumulated annual leave, upon separation from service due to service retirement, any teacher or other personnel paid on the teacher salary schedule with more than 30 days of accumulated annual vacation leave may convert some or all of the excess accumulation to sick leave for creditable service towards retirement. Employees going onto term disability may exhaust annual leave rather than be paid in a lump sum.
.…"
SECTION 7.11.(b) This section applies only to leave days accruing after the date this act becomes law.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
RESA FUNDS SHALL BE USED FOR STAFF DEVELOPMENT
SECTION 7.12.(a) Funds allocated to local school administrative units for Regional Education and Technical Assistance Centers and not expended prior to July 1, 2002, shall remain available to local school administrative units for the 2002‑2003 fiscal year. These funds shall be transferred to the staff development funding allotment and shall be used only for staff development.
SECTION 7.12.(b) This section becomes effective June 30, 2002.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
BASE BUDGET REDUCTION to DEPARTMENT of public instruction
SECTION 7.13.(a) Notwithstanding any other provision of law, the Department of Public Instruction may use salary reserve funds and other funds in the Department's continuation budget to transfer and reclassify positions as necessary to implement the reduction in force for the 2002‑2003 fiscal year. The Department of Public Instruction shall transfer personnel operations to the Office of State Personnel, thereby eliminating four personnel positions.
The State Board of Education shall study the appropriate management structure and budget size of the Department of Public Instruction. The Board shall report the results of this study to the Joint Legislative Education Oversight Committee.
SECTION 7.13.(b) The Office of State Budget and Management shall issue a Request for Proposals for an analysis of the structure and operation of the Department of Public Instruction that identifies potential efficiencies and savings in the operations of the Department. The analysis may consider consolidation of functions with other agencies and automation of functions.
The Request for Proposals may include contingency proposals based on potential savings.
The Office of State Budget and Management shall consult with the Joint Legislative Oversight Committee prior to the award of the contract.
Requested by: Senators Dalton, Lucas, Garrou , Plyler, Odom, Lee
REPLACEMENT School Buses FUNDS
SECTION 7.14.(a) Of the funds appropriated to the State Board of Education for the 2002‑2003 fiscal year, the Board may use up to ten million dollars ($10,000,000) for grants to local boards of education for replacement school buses under G.S. 115C‑249(c) and (d). In making these grants, the State Board of Education may impose any of the following conditions:
(1) The local board of education must use the funds only to make the first year's payment on a financing contract entered into pursuant to G.S. 115C‑528.
(2) The term of a financing contract entered into under this section shall not exceed three years.
(3) The local board of education must purchase the buses only from vendors selected by the State Board of Education and on terms approved by the State Board of Education.
(4) The State Board of Education shall solicit bids for the direct purchase of buses and for the purchasing of buses through financing. The State Board of Education may solicit separate bids for financing if the Board determines that multiple financing options are more cost‑efficient.
(5) A bus financed pursuant to this section must meet all federal motor vehicle safety regulations for school buses.
(6) Any other condition the State Board of Education considers appropriate.
SECTION 7.14.(b) It is the intent of the General Assembly to continue its annual appropriations to the State Board of Education for replacement school buses.
SECTION 7.14.(c) Any term contract for the purchase or lease‑purchase of school buses or school activity buses shall not require vendor payment of the electronic procurement transaction fee of the North Carolina E‑Procurement Service.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
curriculum review required on a regular basis
SECTION 7.15. G.S. 115C‑12(9a) reads as rewritten:
"(9a) Power to Develop Content Standards. – The Board shall develop a comprehensive plan to revise content standards and the standard course of study in the core academic areas of reading, writing, mathematics, science, history, geography, and civics. The Board shall involve and survey a representative sample of parents, teachers, and the public to help determine academic content standard priorities and usefulness of the content standards. A full review of available and relevant academic content standards that are rigorous, specific, sequenced, clear, focused, and measurable, whenever possible, shall be a part of the process of the development of content standards. The revised content standards developed in the core academic areas shall (i) reflect high expectations for students and an in‑depth mastery of the content; (ii) be clearly grounded in the content of each academic area; (iii) be defined grade‑by‑grade and course‑by‑course; (iv) be understandable to parents and teachers; (v) be developed in full recognition of the time available to teach the core academic areas at each grade level; and (vi) be measurable, whenever possible, in a reliable, valid, and efficient manner for accountability purposes.
High school course content standards shall include the knowledge and skills necessary to enter the workforce and also shall be aligned with the coursework required for admission to the constituent institutions of The University of North Carolina. The Board shall develop and implement a plan for end‑of‑course tests for the minimum courses required for admission to the constituent institutions. All end‑of‑course tests shall be aligned with the content standards.
The Board also
shall develop and implement an ongoing process to align State programs and
support materials with the revised academic content standards for each core
academic area every five years. on a regular basis. Alignment
shall include revising textbook criteria, support materials, State tests,
teacher and school administrator preparation, and ongoing professional
development programs to be compatible with content standards. The Board shall
develop and make available to teachers and parents support materials, including
teacher and parent guides, for academic content standards. The State Board of
Education shall work in collaboration with the Board of Governors of The
University of North Carolina to ensure that teacher and school administrator
degree programs, ongoing professional development and other university activity
in the State's public schools align with the State Board's priorities."
Requested by: Senators Dalton, Lucas, Garrou , Plyler, Odom, Lee
Corporate Tax Transfer Moratorium
SECTION 7.16.(a) Notwithstanding the provisions of G.S. 115C‑489.1(b), the Secretary of Revenue shall not deposit any funds in the Critical School Facility Needs Fund during the 2002‑2003 fiscal year but shall deposit in the State Public School Fund the funds that would have otherwise been deposited in the Critical School Facility Needs Fund pursuant to G.S. 115C‑489.1(b).
SECTION 7.16.(b) Notwithstanding the provisions of G.S. 115C‑546.1(b), the Secretary of Revenue shall not remit any funds for credit to the Public School Building Capital Fund during the 2002‑2003 fiscal year but shall deposit in the State Public School Fund the funds that would have otherwise been deposited in the Public School Building Capital Fund pursuant to G.S. 115C‑546.1(b).
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
SECTION 7.17.(a) Supplemental Funding in Low‑Wealth Counties (Compliance with the Nonsupplant Requirement). – Section 28.6(i) of S.L. 2001‑424 reads as rewritten:
"SECTION
28.6.(i) Reports. – The State Board of Education shall report to the Joint
Legislative Education Oversight Committee prior to May 1, 2002, May
1, 2002, and May 1, 2003, if it determines that counties have
supplanted funds."
SECTION 7.17.(b) Small School System Supplemental Funding (Compliance with the Nonsupplant Requirement). – Section 28.7(e) of S.L. 2001‑424 reads as rewritten:
"SECTION 28.7.(e)
Reports. – The State Board of Education shall report to the Joint Legislative
Education Oversight Committee prior to May 1, 2002, May 1, 2002,
and May 1, 2003, if it determines that counties have supplanted funds."
SECTION 7.17.(c) Study of the Textbook Distribution System. – Section 28.24 of S.L. 2001‑424 reads as rewritten:
"SECTION 28.24. The State Board of Education shall contract for an analysis of the best and most efficient method to manage textbook distribution to the local schools. The Board shall prepare a Request for Proposals (RFP) outlining the scope of the analysis required and select a private consultant to perform the analysis. The analysis shall include such issues as timely delivery, total costs to the local school systems in providing textbooks to school buildings, use of currently available technology in the process, pricing practices among the textbook publishing industry, and other issues the Board considers relevant to a comprehensive review of the system.
Prior to award of a contract,
the State Board shall present the Request for Proposals to the Joint
Legislative Education Oversight Committee for comment. The State Board shall
report to the Joint Legislative Education Oversight Committee on the results of
the consultant’s analysis, including the Board’s recommendations for changes in
the current system. The Board shall make its final report to the Committee by April
1, 2002.February 1, 2003."
SECTION 7.17.(d) Study of the Salaries of School Food Service Workers and Custodians. – Section 28.34 of S.L. 2001‑424 reads as rewritten:
"SECTION 28.34.
The Joint Legislative Education Oversight Committee shall study the salaries of
food service workers and custodians employed by the public schools. The
Committee shall report its findings to the 2002 Regular Session of the 2001
General Assembly.2003 General Assembly."
SECTION 7.17.(e) Study of Salary Differentials for Instructional Support Personnel. – Section 28.37(b) of S.L. 2001‑424 reads as rewritten:
"SECTION 28.37.(b)
The Joint Legislative Education Oversight Committee shall study salary
differentials for instructional support personnel. In the course of the study,
the Committee shall consider salary differentials based on degrees and other
educational credentials, licensure or certification by State agencies,
licensure or certification by private entities, and other factors. The
Committee shall report its findings and recommendations to the 2002 Regular
Session of the 2001 General Assembly.2003 General Assembly."
SECTION 7.17.(f) Fairness in Testing (Study of the State's Testing Program). – Section 28.17(i) of S.L. 2001‑424 reads as rewritten:
"SECTION 28.17.(i) The Joint Legislative Education Oversight Committee shall study the State's testing program. As part of this study, the Committee shall consider:
(1) The number of tests currently mandated at the State level and the process and cost of developing, validating, and scoring them.
(2) Whether the State should consider the use of nationally developed tests as a substitute to State‑developed testing. In particular, the Committee shall determine whether this use would (i) affect the ABCs Program, (ii) adequately measure student achievement and performance, (iii) provide more than minimum levels of achievement, (iv) provide a better comparison to student achievement and performance in other states, (v) be practical for high school courses or higher level courses, (vi) reduce the need for field testing, and (vii) offer any cost savings to the State.
(3) The number of grades in which State tests are given. The Committee shall determine the necessity for testing all grades in third through eighth grades, whether a reduction in the grades tested would affect the receipt of federal money, and the extent to which a reduction would impair the State's ability to identify schools under the ABCs Program.
(4) The high school courses for which State tests are given and whether there is an appropriate distribution of tests across grades nine through 12 and that test an appropriate array of the minimum courses required for admission to the constituent institutions of The University of North Carolina. In addition, the Committee shall examine whether students who take higher level courses and students in 12th grade are held accountable for their academic growth and performance.
(5) The advantages and disadvantages of using a composite of end‑of‑course tests or other tests such as the SAT, AP tests, or other nationally standardized tests in high school rather than developing a high school exit exam. If the Committee finds a high school exit exam is preferable, then it shall determine whether it must be administered to all students or limited to certain students, for example, those who do not take the SAT or a certain number of courses for which there are end‑of‑course tests.
(6) The extent to which additional testing, including field testing, practice testing, and locally mandated testing, is occurring and whether this should be limited or prohibited.
(7) Evaluate alternative schools to determine how educational achievement is being advanced in these alternative school programs and that placement in these programs is to improve student performance rather than improve the performance of the school in which the student originally was assigned.
(8) Any other issue the Committee considers relevant.
The Committee shall report its
findings and any recommendations, including recommended legislation, to the 2002
Regular Session of the 2001 General Assembly.2003 General Assembly."
SECTION 7.17.(g) Noncitizen Tuition Rates. – Section 8.9 of S.L. 2001‑491 is repealed.
SECTION 7.17.(h) Study of Professional Development for School Personnel. – Section 31.4(d) of S.L. 2001‑424 reads as rewritten:
"SECTION
31.4.(d) The Joint Legislative Education Oversight Committee shall review
the consultant's findings and recommendations and shall submit to the 2002
Regular Session of the 2001 General Assembly 2003 General Assembly recommendations
to streamline, reorganize, and improve the delivery of professional development
for public school professionals. The recommendations may address revisions to
program governance and mission, reallocation of funds, methods of program
delivery, and methods to institute ongoing program evaluation."
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
performance‑based licensure program
SECTION 7.18.(a) G.S. 115C‑296(b) reads as rewritten:
"(b) (See Note) It is the policy of the State of North Carolina to maintain the highest quality teacher education programs and school administrator programs in order to enhance the competence of professional personnel certified in North Carolina. To the end that teacher preparation programs are upgraded to reflect a more rigorous course of study, the State Board of Education, as lead agency in coordination and cooperation with the University Board of Governors, the Board of Community Colleges and such other public and private agencies as are necessary, shall continue to refine the several certification requirements, standards for approval of institutions of teacher education, standards for institution‑based innovative and experimental programs, standards for implementing consortium‑based teacher education, and standards for improved efficiencies in the administration of the approved programs. The certification program shall provide for initial certification after completion of preservice training, continuing certification after three years of teaching experience, and certificate renewal every five years thereafter.
The State Board of Education, as lead agency in coordination with the Board of Governors of The University of North Carolina and any other public and private agencies as necessary, shall continue to raise standards for entry into teacher education programs.
The State Board of Education, in consultation with the Board of Governors of The University of North Carolina, shall evaluate and develop enhanced requirements for continuing certification. The new requirements shall reflect more rigorous standards for continuing certification and to the extent possible shall be aligned with quality professional development programs that reflect State priorities for improving student achievement. These rigorous standards shall not include a portfolio requirement for teachers.
The State Board of Education, in consultation with local boards of education and the Board of Governors of The University of North Carolina, shall reevaluate and enhance the requirements for renewal of teacher certificates. The State Board shall consider modifications in the certificate renewal achievement and to make it a mechanism for teachers to renew continually their knowledge and professional skills. The State Board shall adopt new standards for the renewal of teacher certificates by May 15, 1998.
The standards for approval of institutions of teacher education shall require that teacher education programs for students who do not major in special education include demonstrated competencies in the identification and education of children with learning disabilities. The State Board of Education shall incorporate the criteria developed in accordance with G.S. 116‑74.21 for assessing proposals under the School Administrator Training Program into its school administrator program approval standards.
All North Carolina institutions of higher education that offer teacher education programs, masters degree programs in education, or masters degree programs in school administration shall provide performance reports to the State Board of Education. The performance reports shall follow a common format, shall be submitted according to a plan developed by the State Board, and shall include the information required under the plan developed by the State Board."
SECTION 7.18.(c) Section 28.19(b) of S.L. 2001‑424 is repealed.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
study of coordination of central office duties
SECTION 7.19. The State Board of Education shall study whether local school administrative units can effectively and efficiently coordinate central office operations and functions between systems. The State Board shall report to the Senate Appropriations Committee on Education/Higher Education and the House Appropriations Subcommittee on Education prior to March 1, 2003, on how base funding formulas for central office administrations can be reduced based on the coordination of duties.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
discrepancies between anticipated and actual adm
SECTION 7.20.(a) If the State Board of Education does not have sufficient resources in the ADM Contingency Reserve line item to make allotment adjustments in accordance with the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual, the State Board of Education may use funds appropriated to State Aid for Public Schools for this purpose.
SECTION 7.20.(b) If the first‑month average daily membership in a local school administrative unit is at least two percent (2%) or 100 students lower than the anticipated average daily membership used for allotments for the unit, the State Board of Education shall reduce allotments for the unit. The reduced allotments shall be based on the first‑month average daily membership plus one‑half of the number of students overestimated in the anticipated average daily membership.
The allotments reduced pursuant to this subsection shall include only those allotments that may be increased pursuant to the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
SECTION 7.21. Notwithstanding Section 8.27(f) of S.L. 1997‑443, the State Board of Education shall review the requirements of the federal "No Child Left Behind Act of 2001." (20 USCS §§ 6301 et seq.) and any regulations adopted to implement this legislation before the Board completes the development of the high school exit examinations and implements the high school exit examinations. The Board shall consider whether revisions to the State testing program and School‑Based Management and Accountability Program are necessary to comply with federal requirements. The Board shall not adopt any revisions prior to reporting them and a proposed timetable for their implementation to the Joint Legislative Education Oversight Committee.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
clarification to provision on addressing teacher shortage
SECTION 7.22. Section 29.2(a)(2) of S.L. 2001‑424 reads as rewritten:
"(2) The sum of $1,500,000 for the 2001‑2002 fiscal year and the sum of $1,500,000 for the 2002‑2003 fiscal year shall be used to provide annual bonuses of one thousand eight hundred dollars ($1,800) to teachers certified in and teaching in the fields of mathematics, science, or special education in grades 6 through 12 at middle and high schools with eighty percent (80%) or more of the students eligible for free or reduced lunch or with fifty percent (50%) or more of students performing below grade level in Algebra I and Biology. The bonus shall be paid monthly with matching benefits. Teachers shall remain eligible for the bonuses so long as they continue to teach in one of these disciplines at a school that was eligible for the bonus program when the teacher first received the bonus."
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
support for the Business Systems Improvement Project (BSIP)
SECTION 7.23. The State Board of Education may use up to one hundred twenty thousand dollars ($120,000) of driver education funds for the 2002‑2003 fiscal year for software maintenance and other support for the Business Systems Improvement Project (BSIP), a new school bus transportation system operated by the Department of Transportation.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
extend alternative lateral entry program
SECTION 7.24. Section 2 of S.L. 1998‑226 reads as rewritten:
"Section 2. This act
is effective when it becomes law and expires September 1, 2002,September
1, 2006, except that it remains effective for any teacher employed under
this act before September 1, 2002. September 1, 2006."
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
SECTION 7.25. The maximum class size limits for kindergarten for the 2002‑2003 school year shall be the same as the class size limits established by the State Board of Education for the 2001‑2002 school year.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
local education agency flexibility
SECTION 7.26. Within seven days of the date this act becomes law, the State Board of Education shall notify each local school administrative unit of the amount the unit must reduce from State General Fund appropriations. The State Board shall determine the amount of the reduction for each unit on the basis of average daily membership.
Each unit shall report to the Department of Public Instruction on the discretionary budget reductions it has identified for the unit within 30 days of the date this act becomes law.
The General Assembly urges local school administrative units to make every effort not to reduce either direct classroom services or services directly targeted to at‑risk students and children with special needs. If reductions to these allotment categories are necessary in order to meet the reduction target, the local board of education shall submit an explanation of the anticipated impact of the reduction to student services along with the budget reductions to the Department of Public Instruction.
Requested by: Senators Dalton, Reeves, Lee, Plyler, Odom
Business and Education Technology Alliance
(1) The Superintendent of Public Instruction or his or her designee;
(2) One member of the State Board of Education appointed by the State Board of Education;
(3) One parent of a public school child appointed by the State Board of Education after receiving recommendations from the North Carolina State Parent Teacher Association;
(4) Two members of the Senate;
(5) Two members of the House of Representatives;
(6) One member of a local board of education who represents a local education agency (LEA) that has successfully incorporated technology into its schools, who is appointed by the Governor, after receiving recommendations from the North Carolina School Boards Association;
(7) One member of a local board of education who represents a local education agency (LEA) that has limited access to technology, who is appointed by the Governor, after receiving recommendations from the North Carolina School Boards Association;
(8) Two at‑large members appointed by the Governor;
(9) One representative of business and industry appointed by the State Board of Education after receiving recommendations from the North Carolina Citizens for Business and Industry;
(10) Three members appointed by the President Pro Tempore of the Senate. In making these appointments the President Pro Tempore is encouraged to consider appointing a local school superintendent who represents a local education agency that has limited access to technology, a school principal who works in a school that successfully incorporates technology into its instructional program, and a school teacher who works in a school with limited access to technology. Professional associations representing school administrators and professional associations representing teachers may recommend appointees to the President Pro Tempore;
(11) Three members appointed by the Speaker of the House of Representatives. In making these appointments the Speaker of the House of Representatives is encouraged to consider appointing a local school superintendent from a local education agency that has successfully incorporated the use of technology into its instructional programs, a school principal working in a school with limited access to technology, and a school teacher who has successfully incorporated the use of technology into classroom instruction. Professional associations representing school administrators and professional associations representing teachers may recommend appointees to the Speaker of the House of Representatives;
(12) One chancellor or his or her designee of institutions of higher education who has demonstrated effective and innovative use of technology for education, appointed by the Board of Governors of The University of North Carolina;
(13) One president or his or her designee of the Community College System who has demonstrated effective and innovative use of technology for education, appointed by the Community College Board of Trustees;
(14) Two county commissioners, one of whom represents a county that has successfully incorporated technology into its schools and community, who are appointed by the State Board of Education, after receiving recommendations from the North Carolina Association of County Commissioners;
(15) Two representatives of technology businesses who have either successfully developed innovative technology programs for education or have partnered with a local education agency (LEA) to develop a technology‑based education environment in that LEA, who are appointed by the State Board of Education, after receiving recommendations from North Carolina Electronics and Information Technologies Association and the North Carolina Citizens for Business and Industry; and
(16) One representative of the Information Resource Management Commission appointed by the Commission's Chair.
SECTION 7.27.(f) The Business and Education Technology Alliance shall:
(1) Advise the State Board of Education on the development of a vision for a technologically literate citizen in 2025. This vision should contain the educational standards needed to accomplish that vision, the educational uses of technology to accomplish that vision, and a plan for educating the community, educators, and business people about the vision and educational uses of technology. Incorporated within the vision and the plan for educating the public about the vision may include:
a. Various models and frameworks of the high quality and effective use of technology for education purposes including those students who have not learned with traditional approaches. The models may include the Cumberland County Schools Web Academy, the Virtual High School, and Nova Net.
b. Opportunities for teachers to experience the uses of technology in work and business settings, which is the world for which they are preparing students to work.
c. Production of multimedia presentations such as videos, commercials, and publications that help citizens, students, and educators see and understand the current and future power of technology for educating our children and impacting our lives.
(2) Advise the State Board of Education on the development of a technology infrastructure, delivery, and support system that provides equity and access to all publics in North Carolina. The infrastructure, delivery, and support system may include:
a. Opportunities for access to high‑speed connectivity to the Internet which impacts on the quality of instruction that can be provided for students at school and in the community.
b. Technology networks that enable communities to encompass the student and his/her family while maintaining the rights to privacy for all citizens, i.e., a social service, health, education, and mental health network. This network will increase collaboration among agencies and provide a coordinated, systemic service approach.
c. Continue to evaluate the status of current technology systems and structures from the State to local level as it relates to employing technology for improving instruction.
d. Continue to provide access to technology equipment and infrastructure at home, school and in the community such as extended hours of operation for schools and other community facilities and on‑loan laptop computers for student and parent use.
e. Continue to develop surveys that provide information about the types and results of technological tools utilized by teachers, students, and others at school, in the community and home.
f. Sufficient personnel to maintain the operation of information technology systems.
g. Coordination with regional economic development planners to position local education agencies as an integral part of economic development.
(3) Advise the State Board of Education on the development of professional development programs for teachers to successfully implement and use technology in public schools for all students. These programs should also develop their leadership skills so that they can use technology as a tool to support the rethinking of the core business of schools: student learning. The professional development programs may include:
a. Models of staff development from the State that are considered state of the art, support the vision for technology, and that could be used by local districts to train their staffs.
b. Designated time for professional development for using technology as well as skills for using technology as a delivery for curriculum and instructional programs.
c. Collegial planning time so that colleagues can coach and support each other in learning new ways in which to think about instruction.
d. Teacher and administrator preparation and other programs that ensure the Department of Public Instruction's Technology Foundation Standards for Teachers and Administrators in higher education are incorporated into classroom instruction.
e. Training teachers with skill sets to teach technical courses that are in growing demand to function at home and work.
f. Increase opportunities for sharing best practices in all areas of instruction.
g. Increase opportunities for learning how to use technology to customize instruction for all students.
h. Increase opportunities for learning how to use technology to diagnose student learning.
(4) Advise the State Board of Education on the development of a Funding and Accountability system to ensure statewide access and equity. The Funding and Accountability system may include:
a. Public‑private partnerships.
b. Identification of resources and the cost of those resources.
c. Funding to keep hardware/software current.
d. Evaluating progress toward realizing the technology vision.
e. Evaluating the impact of various technology initiatives on alleviating some of the State's education and economic development problems.
f. Incentives to encourage risk taking and innovative uses of technology.
g. Funding for only those initiatives that are well‑planned, demonstrate high commitment, and have a solid evaluation component.
(5) Report annually to the State Board of Education on the progress of the Alliance's recommendations for education technology in the public schools on the first Friday in December. This report may contain a summary of recommendations for changes to any law, rule, and policy that would improve implementing education technology in the public schools.
(6) Report annually to the Joint Legislative Education Oversight Committee in the General Assembly on the recommendations for education technology in the public schools on the first Friday in January. This report may contain a summary of recommendations for changes to any law, rule, and policy that would improve implementing education technology in the public schools.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
community college funding flexibility
SECTION 8.1. A local community college may use all State funds allocated to it, except for Literacy Funds and Funds for New and Expanding Industries, for any authorized purpose that is consistent with the college's Institutional Effectiveness Plan. Each local community college shall include in its Institutional Effectiveness Plan a section on how funding flexibility allows the college to meet the demands of the local community and to maintain a presence in all previously funded categorical programs.
No more than two percent (2%) systemwide shall be transferred from faculty salaries without the approval of the State Board of Community Colleges. The State Board shall report on any such transfers above two percent (2%) systemwide to the Joint Legislative Commission on Governmental Operations at its next meeting.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
SECTION 8.2. G.S. 115D‑5(f) reads as rewritten:
"(f) A community college
may not offer a new program without the approval of the State Board of
Community Colleges except that approval shall not be required if the tuition
for the program will fully cover the cost of the program. If at any time
tuition fails to fully cover the cost of a program that falls under the
exception, the program shall be discontinued unless approved by the State Board
of Community Colleges. If a proposed new program would serve more than one
community college, the State Board of Community Colleges shall perform a
feasibility study prior to acting on the proposal.
The State Board of Community Colleges shall require that all new programs it approves be developed using a regional approach unless there are extreme extenuating circumstances documented by the college detailing reasons a regional program is not feasible. The college shall demonstrate that it has attempted to develop a regional program and explain what barriers were in existence.
It is the intent of the General Assembly to increase the number of regional program offerings in community colleges and to reduce duplication of programs by colleges that are within reasonably close proximity to each other; therefore, the State Board of Community Colleges shall review existing programs to determine which of the existing programs can be offered regionally.
The State Board of Community
Colleges shall report on an annual basis to the Governor, Lieutenant Governor,
the Speaker of the House of Representatives, the Joint Legislative
Commission on Governmental Operations, and the Advisory Budget Commission and
the Joint Legislative Education Oversight Committee on all new programs it
approved and on the progress made on regional programs during the year.
The report shall include the specific reasons for which each new program
was approved.approved, a progress report on regionalization of
programs, a list of all programs approved by the State Board that are not
regional and the reasons for their approval, and a list of program terminations
approved by the State Board."
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
regional economic development vision plans
SECTION 8.3. The State Board of Community Colleges and the Department of Commerce, in conjunction with the North Carolina Board of Economic Development and the seven regional economic development commissions, shall adopt a joint policy that requires the development of a five‑year vision plan for each of the economic development regions in the State. The joint policy shall establish a task force for each economic development region. Each task force shall consist of at least one representative from each of the following: the regional economic development commission, the president, and board of trustees of the community colleges located in that region, and any additional persons as may be designated by the policy. The task force may appoint an executive committee and any subcommittees it deems appropriate.
The policy shall direct each task force to develop a five‑year vision plan for its economic development region. At a minimum, each vision plan shall determine the realistic economic development goals and the future job market in that region and shall identify community college courses currently offered or needed to effectuate the vision plan. The policy shall require the task forces to review and update their respective vision plans every five years.
If the service area of any community college is in more than one economic development region, then the State Board of Community Colleges shall determine how the participation in the various task forces will be addressed.
Requested by: Senators Dalton, Lucas, Garrou, Robinson, Plyler, Odom, Lee
haywood regional high technology center
SECTION 8.4. The Office of State Budget and Management shall transfer funding for Haywood Regional High Technology Center from the special allotments line item to a new line item entitled "Haywood Regional High Technology Center".
Requested by: Senators Dalton, Lucas, Garrou, Rand, Plyler, Odom, Lee
SECTION 8.5.(a) Academic Support Supplement. – Effective July 1, 2002, funding for the Academic Support Supplement shall no longer be included as part of the curriculum instruction formula but shall be allocated from a separate line item in State Aid fund code 1600. The State Board of Community Colleges shall allocate these funds to the colleges on the basis of the budgeted FTE curriculum student enrollment for the current fiscal year.
Nothing in this section shall be construed to provide or to indicate the intent of the General Assembly to provide additional funding for the Academic Support Supplement.
SECTION 8.5.(b) Formula Modification Restrictions. – The State Board of Community Colleges may examine and recommend to the General Assembly new State Aid allocation options that more closely align the allocation and expenditure of State‑appropriated resources. The State Board shall report any recommendations regarding modifications to the formula to the Senate Appropriations Committee on Education/Higher Education, the House Appropriations Subcommittee on Education, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Fiscal Research Division.
SECTION 8.5.(c) Effective July 1, 2002, the State Board of Community Colleges shall no longer allocate funds for the Botanical Laboratory from General Fund appropriations. Instead, no more than two hundred thousand dollars ($200,000) from excess overrealized receipts shall be used for this purpose.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
temporary rules on fte for training provided to law enforcement PERSONNEL
SECTION 8.6.(a) The State Board of Community Colleges may adopt temporary rules clarifying the conditions under which community colleges may earn budgeted FTE for training provided to personnel in law enforcement, fire and rescue services, and emergency medical service agencies.
SECTION 8.6.(b) This section becomes effective when this act becomes law and expires six months after that date.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
community college system study
SECTION 8.7. The State Board of Community Colleges shall hire an outside consultant to consider:
(1) The organization and structure of the Community College System, the number of colleges within the System, the location and size of the colleges, and whether the State could realize any administrative savings from the consolidation of some colleges or programs, and
(2) The formula used to fund administration at the colleges, appropriate funding levels for administration of the various colleges, and the appropriate number of administrative staff members for colleges of different sizes.
The State Board of Community Colleges shall report the results of the study to the Joint Legislative Education Oversight Committee and the Fiscal Research Division no later than February 1, 2003.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
Elizabeth City State University Pharmacy School
SECTION 9.1. The Board of Governors of The University of North Carolina shall establish an accredited and fully staffed stand‑alone school of pharmacy at Elizabeth City State University no later than the 2004‑2005 academic year. The Board of Governors shall immediately begin to implement the proposals regarding establishment of a fully staffed stand‑alone school of pharmacy at Elizabeth City State University as set out in the feasibility study conducted in compliance with Section 31.10(c) of S.L. 2001‑424.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
TRANSFER collection responsibilities for certain SCHOLARSHIP PROGRAMS TO STATE EDUCATION ASSISTANCE AUTHORITY
SECTION 9.2.(a) The statutory authority, powers, duties, and functions, records, personnel, property, and unexpended balances of appropriations, allocations, or other funds of the North Carolina Teaching Fellows Commission relating to the collection of loans awarded under G.S. 115C‑363.23A when the loan repayments are outstanding for more than 30 days are transferred from the North Carolina Teaching Fellows Commission to the State Education Assistance Authority. This transfer has all of the elements of a Type II transfer as defined by G.S. 143A‑6.
SECTION 9.2.(b) The statutory authority, powers, duties, and functions, records, personnel, property, and unexpended balances of appropriations, allocations, or other funds of the Department of Public Instruction relating to the collection of loan repayments for loans awarded under Article 32A of Chapter 115C of the General Statutes when the loans are outstanding for more than 30 days are transferred from the Department of Public Instruction to the State Education Assistance Authority. This transfer has all of the elements of a Type II transfer as defined by G.S. 143A‑6.
SECTION 9.2.(c) G.S. 115C‑363.23A is amended by adding a new subsection to read:
"(g) The State Education Assistance Authority is responsible for the collection of a loan awarded under this section if the loan repayment is outstanding for more than 30 days."
SECTION 9.2.(d) G.S. 115C‑363.23A(f) reads as rewritten:
"(f) All funds appropriated to or otherwise received by the Teaching Fellows Program for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund shall be used for scholarship loans granted under the Teaching Fellows Program. With the prior approval of the General Assembly in the Current Operations Appropriations Act, the revolving fund may also be used for campus and summer program support, and costs related to disbursement of awards and collection of loan repayments.
The Public School Forum, as
administrator for the Teaching Fellows Program, may use up to one hundred fifty
thousand dollars ($150,000) annually from the fund balance for costs associated
with administration of the Teaching Fellows Program. These funds are in
addition to funds required for collection costs related to loan repayments."
SECTION 9.2.(e) Article 32A of Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-472.1. State Education Assistance Authority collect loan repayments.
The State Education Assistance Authority is responsible for the collection of a loan awarded under this Article if the loan repayment is outstanding for more than 30 days."
SECTION 9.2.(f) G.S. 116‑204 is amended by adding the following new subdivisions to read:
"(9) To collect loan repayments for loans awarded under the Teaching Fellows Program pursuant to G.S. 115C-363.23A if the loan repayment is outstanding for more than 30 days.
(10) To collect loan repayments for loans awarded from the Scholarship Loan Fund for Prospective Teachers pursuant to Article 32A of Chapter 115C of the General Statutes if the loan repayment is outstanding for more than 30 days."
Requested by: Senators Dalton, Garrou, Lucas , Plyler, Odom, Lee
Substitution of UNC Bond Projects
SECTION 9.3.(a) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational and research program requirements at North Carolina State University by substituting a project entitled Animal and Food Science Facilities for the Meat Processing Laboratory, as contained in Section 2(a) of S.L. 2000‑3, and by transferring a portion of the funds from the project entitled Main Campus – Infrastructure (Including Water System), as contained in Section 2(a) of S.L. 2000‑3, to this substitute project. Section 2(a) of S.L. 2000‑3 is therefore amended as follows:
(1) In the portion under Projects Whose Funding Was Transferred to Disaster Recovery Fund – North Carolina State University, by deleting "Meat Processing Laboratory….$4,853,755".
(2) In the portion under North Carolina State University, by adding "Animal and Food Science Facilities….$6,460,980" and by decreasing by $1,607,225 the $9,330,700 for Main Campus – Infrastructure (Including Water System) so that it reads “Main Campus ‑ Infrastructure (Including Water System)….$7,723,475".
SECTION 9.3.(b) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational requirements at the North Carolina School of the Arts by substituting a project entitled High School Student Residential Facility for the Residential Facility as contained in Section 2(a) of S.L. 2000‑3, which was anticipated to be built for college students. Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under North Carolina School of the Arts, by deleting "Residence Hall…$1,832,100" and by adding "High School Student Residential Facility…$1,832,100".
SECTION 9.3.(c) Nothing in this section is intended to supersede any other requirement of law or policy for approval of the substituted capital improvement projects.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
UNC Scholarship Programs Consolidated
SECTION 9.4.(a) Effective July 1, 2003, all funds in the continuation budget for the following scholarship programs shall be combined into one scholarship fund to be known as the "UNC Campus Scholarships":
(1) Minority Presence Grants for undergraduate and doctoral, law and veterinary medicine students as described in the 1979 Consent Decree between the University of North Carolina and the United States Department of Health Education and Welfare at § VI, paragraphs 6.a. and 6.b.
(2) Minority Presence Grants‑II as established in Section 17.3A of S.L. 1994‑769.
(3) Incentive Scholarship Program for Native Americans as established in Section 17.3 of S.L. 1994‑769.
(4) Elizabeth City State University Incentive Program as established by Chapter 738 of the 1987 of the Session Laws.
(5) Incentive Grants for Certain Constituent Institutions as established by S.L. 1991‑689.
(6) Freshman Scholars Programs as established by Section 46 of S.L. 1993‑ 561.
(7) Legislative College Opportunity Program as established by Section 17.14 of S.L. 1994‑769.
SECTION 9.4.(b) All obligations to students for uses of the funds set out in subsection (a) of this section that were made prior to the effective date of this act shall be fulfilled as to students who remain eligible under the provisions of the respective programs.
SECTION 9.4.(c) Except as provided in subsection (d) of this section, funds in the UNC Campus Scholarships shall be distributed among the constituent institutions of The University of North Carolina in the same amounts as previous to the effective date of this act.
SECTION 9.4.(d) Funds in the UNC Campus Scholarships allocated for doctoral study shall be reallocated based on the proportion of doctoral students enrolled at each of the campuses that have doctoral students. These funds shall continue to be committed only to doctoral students who are North Carolina residents and shall be allocated based on need. The funds previously in the Incentive Scholarship Program for Native Americans at the doctoral level shall be distributed evenly among the campuses with doctoral programs.
SECTION 9.4.(e) The Board of Trustees of each constituent institution shall define its particular campus goals and guidelines for the use of the UNC Campus Scholarships for undergraduates. The chancellor of each constituent institution shall submit its proposed guidelines to the President of The University of North Carolina for approval before implementing them. Only residents of North Carolina shall be eligible to receive grants from the UNC Campus Scholarships. Unless a campus has determined that it has sufficient diversity in its undergraduate student population to provide the educational benefits of diversity, the campus shall use at least the portion of these funds that previously provided Minority Presence Grants for undergraduates to promote diversity within the undergraduate student body of the campus to the extent permitted by the constitution and laws of the State of North Carolina and of the United States.
SECTION 9.4.(f) No constituent institution is required to have a community service requirement for receipt of grants from the UNC Campus Scholarships.
SECTION 9.4.(g) The State Education Assistance Authority shall administer the UNC Campus Scholarships. Upon the naming of recipients of grants from the UNC Campus Scholarships, each constituent institution shall inform the State Education Assistance Authority (SEAA) of its decisions. The SEAA shall perform all of the administrative functions necessary to implement this program. The North Carolina State Education Assistance Authority shall conduct periodic evaluations of expenditures of the UNC Campus Scholarships to determine if allocations are being utilized, are addressing the financial needs of students or other needs identified by the constituent institutions, and are improving diversity on the campuses. SEAA may make recommendation for redistribution of funds to the President of The University of North Carolina who may authorize redistribution of unutilized funds for a particular fiscal year among the constituent institutions.
SECTION 9.4.(h) Each constituent institution shall maintain the current proportion of allocation of these funds for undergraduate Native American students. To be eligible for such a grant, a student must be a resident of North Carolina and must be a Native American, defined as an individual who maintains cultural and political identification as a Native American through membership in an Indian tribe recognized by the State of North Carolina or by the United States. The North Carolina State Education Assistance Authority may redistribute to another constituent institution funds for Native Americans which are uncommitted by January 5 of each fiscal year.
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
Eliminate UNC Mailing List Duplication
SECTION 9.5. Section 10.11 of S.L. 1999‑237 reads as rewritten:
"Section 10.11. Each
constituent institution of The University of North Carolina and each community
college shall provide to students and their families a brief, clear explanation
of federal tax credits (the HOPE and Lifetime Learning Credits) that are
available for educational purposes. The explanation shall include the
limitations of the credits as well as examples of the potential benefits under
certain tax situations. The constituent institution shall provide the tax
credit information to the student and or the student's parents
when the institution notifies each of the amount of tuition and fees paid for a
calendar year."
Requested by: Senators Dalton, Garrou, Lucas, Plyler, Odom, Lee
aid to private colleges technical corrections
SECTION 9.6. G.S. 116‑21.4(a) reads as rewritten:
"(a) Expenditures made
pursuant to G.S. 116‑19, 116‑20, 116‑21.1, or 116‑21.2
may be used only for secular educational purposes at an institution as
defined by G.S. 116-22.nonprofit institutions of higher learning that
meet the qualifications set out in G.S. 116-22."
Requested by: Senators Dalton, Lucas, Garrou, Plyler, Odom, Lee
SECTION 9.7. The chancellor of each constituent institution shall report to the Board of Governors of The University of North Carolina on the reductions made to the General Fund budget codes in order to meet the reduction reserve amounts for that institution. The director of the North Carolina School of Science and Mathematics shall report to the Board of Governors of The University of North Carolina on the reductions made in its General Fund budget code in order to meet the reduction reserve amounts for that institution. The President of The University of North Carolina shall report to the Board of Governors of The University of North Carolina on the reductions made to the General Fund budget codes controlled by the Board in order to meet the reduction reserve amounts for those entities. The Board of Governors shall make a summary report to the Fiscal Research Division by October 31, 2002, on all reductions made by these entities and constituent institutions in order to reduce the budgets by the targeted amounts.
Requested by: Senators Dalton, Lucas, Garrou, Clodfelter, Dannelly, Hoyle, Odom, Plyler, Lee
Out‑of‑State Institutions with NC campuses
SECTION 9.8. G. S. 116‑22 reads as rewritten:
"§ 116‑22. Definitions applicable to §§ 116‑19 to 116‑22.
As used in G.S. 116‑19 through 116‑22:
(1) "Institution"
shall mean an educational institution with its main a main permanent campus
located in this State that is not owned or operated by the State of North
Carolina or by an agency or political subdivision of the State or by any
combination thereof, that is accredited by the Southern Association of
Colleges and Schools under the standards of the College Delegate Assembly of
said Association and that satisfies all of the following:
a. Is accredited by the Southern Association of Colleges and Schools under the standards of the College Delegate Assembly of the Association or by the New England Association of Schools and Colleges through its Commissions on Institutions of Higher Education.
b. Awards a
postsecondary degree as defined in G.S. 116-15. and that is
c. Is not a seminary, Bible school, Bible college or similar religious institution.
(1a) "Main permanent campus" shall mean a campus owned by the institution that provides permanent on-premises housing, food services, and classrooms with full-time faculty members and administration that engages in postsecondary degree activity as defined in G.S. 116-15.
(2) "Student" shall mean a person enrolled in an institution that is located in the State who qualifies as a resident of North Carolina in accordance with definitions of residency that may from time to time be adopted by the Board of Governors of the University of North Carolina and published in the residency manual of said Board; and a person who has not received a bachelor's degree, or qualified therefore, and who is otherwise classified as an undergraduate under such regulations as the Board of Governors of the University of North Carolina may promulgate. The enrollment figures required by G.S. 116‑19 through 116‑22 shall be the number of full‑time equivalent students as computed under regulations prescribed by the Board of Governors of the University of North Carolina. Qualification for in‑State tuition under G.S. 116‑143.3 makes a person a "student" as defined in this subdivision."
Requested by: Senators Robinson, Plyler, Odom, Lee
SECTION 9.9. The Board of Governors of The University of North Carolina may allow Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University each to allocate up to one hundred seventy‑eight thousand three hundred eighty dollars ($178,380) of the funds allocated to them for focused enrollment growth for a maximum of 20 Prospective Teacher Scholars. These funds may be used to recruit new nonresident students to enter into agreements to: (i) pursue a full‑time course of study that will lead to teacher certification in North Carolina and (ii) teach in a North Carolina public school or a school operated by the United States government in North Carolina for one year for each year that they receive this benefit. The Board of Governors shall establish guidelines and regulations for this pilot program, including methodology for determining its success in increasing the supply of qualified teachers for North Carolina public schools. The Board shall report its guidelines and regulations to guide these pilot programs to the Joint Legislative Education Oversight Committee by September 15, 2002. The Board shall report annually to the Committee on the progress of the pilot programs and their costs.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
INFORMATION TECHNOLOGY PROJECT CONTRACTS
SECTION 10.1. Section 21.17 of S.L. 2001‑424 reads as rewritten:
"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 for 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.June 30, 2005."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
consolidation of divisions of services for the Deaf and the hard of hearing, services for the blind, and vocational rehabilitation
SECTION 10.2.(a) There is created within the Department of Health and Human Services a new division. The following three divisions, including all positions and corresponding State appropriations, federal funds, and other funds, shall be consolidated within this new division:
(1) Division of Services for the Deaf and the Hard of Hearing.
(2) Division of Services for the Blind.
(3) Division of Vocational Rehabilitation Services.
The new division shall retain all the duties, responsibilities, and powers of these three divisions. The name of the new division shall be determined by the Department of Health and Human Services.
SECTION 10.2.(b) The Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on activities carried out under this section not later than October 1, 2002. This report shall include the following:
(1) The name of the new division.
(2) An organizational chart showing the organizational structure of the new division.
(3) A plan for reducing the budget of the consolidated division by seven hundred fifty thousand dollars ($750,000).
(4) A list of all statutory references that need to be changed as a result of the consolidation.
SECTION 10.2.(c) In developing a plan to reduce State appropriations to the new division, the Department shall do the following:
(1) Consolidate the administration of the three existing divisions.
(2) Consolidate all district offices in cities where there is currently more than one office.
(3) Streamline the provision of direct client services provided by the three existing divisions.
(4) Maintain services unique to persons who are blind, deaf, or blind and deaf.
(5) Develop a plan for using existing resources to expand services for deaf and hard‑of‑hearing persons to areas of the State where services are currently not provided.
(6) Maintain or increase current funding levels for all programs and services currently provided by the Division of Services for the Deaf and Hard of Hearing.
SECTION 10.2.(d) Any additional savings beyond the seven hundred fifty thousand dollars ($750,000) achieved through the consolidation of the three divisions shall be reallocated to direct services with first priority being given to serving the unmet needs of deaf and hard‑of‑hearing persons.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
Staffing Requirements in Long‑Term Care facilities
SECTION 10.3.(a) The Department of Health and Human Services, Office of Long‑Term Care, shall review staffing requirements of Adult Day Care Programs and Adult Day Health Programs.
SECTION 10.3.(b) The Department shall report the results of its review to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than December 1, 2002. The report shall include staffing requirements for adult day care and adult day health programs as compared to adult care homes, assisted living facilities, and nursing homes in the State. The report shall also compare staffing ratios in North Carolina to those of other states, including those states that border North Carolina. The report shall be conducted by the Department, Office of Long‑Term Care, or by an independent contractor and shall contain all of the following specific information:
(1) Number of staff required per resident.
(2) Education/work experience required and preferred as a basis for hire.
(3) Specific job duties outlined in job descriptions.
(4) Rationale and justification for establishing the existing staff ratios in the Division of Aging's policy for adult day care and adult day health care.
(5) An analysis of the variance in staffing requirements among adult day care and adult day health programs, adult care homes, assisted living facilities, and nursing homes.
(6) Identification of the entities responsible for licensing and monitoring quality for all providers of long‑term care in the State.
(7) Recommendations for changes to existing policies based on findings of the Department's review.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
Report on Services Provided to Older Adults
SECTION 10.4. The Department of Health and Human Services, Office of Long‑Term Care 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 services provided to older adults. The report shall provide information as follows:
(1) Identify all State agencies that provide services to adults age 60 and older throughout the State.
(2) All resources available from all sources, including federal, State, and local funds and personnel, for providing services to this population.
(3) Plans for reducing administration through the consolidation of functions throughout Divisions of the Department.
The Office of Long‑Term Care shall consult with experts in long‑term care and other relevant information sources to develop a plan to streamline services for older adults at the local level. The Department shall submit its report not later than February 1, 2003.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
RURAL HEALTH LOAN REPAYMENT INCENTIVE PROGRAM
SECTION 10.5. The Department of Health and Human Services, Office of Rural Health, shall conduct an assessment of the Rural Health Loan Repayment Incentive Program. The assessment shall consider whether the Program should be continued and shall identify ways to recruit additional providers to rural areas within existing funds. The Department shall report on its activities and progress of the assessment 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 December 1, 2002. The report shall provide detailed information on the number of providers recruited, identification of the counties in which the providers are recruited, and the amount of loan repayment and length of service to a community for each provider.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
ACCESS TO PHARMACEUTICAL COMPANY PRESCRIPTION DRUg programs
SECTION 10.6. Section 21.6(a) of S.L. 2001‑424, as amended by S.L. 2001‑513, reads as rewritten:
"SECTION
21.6.(a) Of the funds appropriated in this act to the Department of Health
and Human Services, 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 initiate
the development of a system to assist eligible individuals in obtaining
prescription drugs at no cost through pharmaceutical company programs. The
system will be designed to minimize the efforts of patients and their health
care providers in securing needed drugs. The required patient and health care
provider data will be maintained and orders tracked in order to initiate timely
reorders of needed drugs to assure continuity of medication intake. The
Department may contract with a private nonprofit organization to assist in the
development of the system as provided under this section."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
use of funds for the child advocacy institute
SECTION 10.7. State funds appropriated for the Child Advocacy Institute shall be used only for administration of the Child Advocacy Institute or for research and other services provided by the Institute. These funds shall not be used or replaced by other funds for (i) lobbying or other governmental affairs activities or (ii) direct contributions to other nongovernmental entities.
This section shall not be construed to prohibit the Institute from using State funds to contract with other nongovernmental entities for the purchase of goods or services.
Requested by: Senators Martin of Guilford, Purcell, Hoyle, Plyler, Lee
Consolidation of Maintenance Activities
SECTION 10.8.(a) The Department of Health and Human Services shall develop a plan to consolidate building maintenance activities at the North Carolina School for the Deaf at Morganton, the Western Carolina Center, and Broughton Hospital. The plan shall assess the needs for maintenance at all three centers, determine the level of staff necessary to carry out all of the current activities with fewer managers, supervisors, and other staff, and develop a new single budget for the maintenance activities.
SECTION 10.8.(b) The Department of Health and Human Services shall identify other facilities throughout the State that are in close proximity to one another and assess the feasibility of consolidating the building maintenance activities at those facilities.
SECTION 10.8.(c) The Department of Health and Human Services shall report on activities carried out 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 December 1, 2002.
Requested by: Senators Martin of Guilford, Purcell, Hoyle, Plyler, Lee
AREA AUTHORITY/COUNTY PROGRAM PROMPT PAY
"§ 122C-141.1. Area authority and county program prompt payment of invoices from service providers.
(a) As used in this section, 'provider' means any qualified public or private provider, agency, institution, or resource that contracts with an area authority or county program for the provision of services pursuant to G.S. 122C-141(a).
(b) An area authority or county program shall, within 30 calendar days after receipt of an invoice from a provider for services rendered, send to the provider:
(1) Payment of the invoice,
(2) Notice of denial of payment of the invoice, or
(3) Notice that additional information is necessary for payment of the invoice.
An area authority or county program is presumed to have received a written invoice five business days after the invoice has been placed first-class postage prepaid in the United States mail addressed to the area authority or county program or an electronic invoice transmitted to the area authority, the county program, or a designated clearinghouse on the day the invoice is electronically transmitted.
(c) If payment of the invoice is denied, the notice of denial shall include all of the specific good-faith reasons for the denial. If payment of the invoice is denied only in part, the area authority or county program shall pay the undisputed portion of the invoice within 30 calendar days after receipt of the invoice and send the notice of denial within 30 calendar days after receipt of the invoice. If notice is given that additional information is necessary for payment of the invoice, the notice shall contain the specific good-faith reasons why the invoice has not been paid and a complete itemization or description of all of the information needed by the area authority or county program to complete the processing of the invoice. Upon receipt of the additional information, the area authority or county program shall continue processing the invoice and shall pay or deny the invoice within 30 calendar days after receiving the additional information.
(d) An area authority and county program may not limit the time in which providers may submit invoices to fewer than 180 days after the services were rendered.
(e) Payments on invoices that are not made within the time period required by this section shall bear interest at the annual percentage rate of eighteen percent (18%) beginning on the date following the day on which the invoice should have been paid. A payment is considered made on the date upon which a check, draft, or other valid negotiable instrument is placed in the United States Postal Service in a properly addressed, postpaid envelope, or, if not mailed, on the date of the electronic transfer or other delivery of the payment to the provider."
Requested by: Senators Plyler, Lee
UNIFORM PROVIDER CREDENTIALING BY HEALTH INSURANCE PLANS
SECTION 10.10. G.S. 58‑3‑230(a) reads as rewritten:
"(a) An insurer that provides a health benefit plan and that credentials providers for its networks shall maintain a process to assess and verify the qualifications of a licensed health care practitioner, or applicant for licensure as a health care practitioner, within 60 days of receipt of a completed provider credentialing application form approved by the Commissioner. If an application submitted under this section is approved, and the health care practitioner is a member of a practice that participates in the health benefit plan's network, the date on which the credentialing application was approved by the health benefit plan shall be the effective date of the network participation contract."
Requested by: Senators Lee, Odom
deposit central deaf school sale proceeds in Mental health trust fund
SECTION 10.10A. The proceeds of the sale of the facilities and other real estate associated with the Central North Carolina School for the Deaf shall be deposited in the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs established pursuant to G.S. 143-15.3D.
subpart 2. division of medical assistance
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 10.11.(a) Section 21.19 of S.L. 2001‑424 reads as rewritten:
"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. Residents of nursing facilities who are eligible for Medicare coverage of nursing facility services must be placed in a Medicare certified bed. Medicaid shall cover facility services only after payments have been made by Medicare.
(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. Payment is limited to Medicaid enrolled providers that provide evidence of medical malpractice insurance coverage or that purchase a performance bond in the amount of fifty thousand dollars ($50,000) naming as beneficiary the Department of Health and Human Services, Division of Medical Assistance.
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. In determining income eligibility under this subdivision, the income of a minor's parents shall be counted.
(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. The Department of Health and Human Services shall identify adequate funds to support the implementation and first year's operational costs that exceed the currently allocated funds for the new contract for the fiscal agent for the Medicaid Management Information System.
SECTION 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.(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"
"income producing", tenancy-in-common, or as nonhomesite property
made "income producing" under Title XIX, Section 1902(r)(2) of
the Social Security Act. The transfer of assets policy shall apply only to an
institutionalized individual or the individual's spouse as defined in Title
XIX, Section 1917(c) of the Social Security Act. This subsection becomes
effective no earlier than October 1, 2001. Federal transfer of asset
policies to properties excluded as tenancy-in-common or as nonhomesite property
made "income producing" in accordance with this subsection shall
become effective no earlier than October 1, 2002."
SECTION 10.11.(b) Effective October 1, 2002, G.S. 108A‑70.5(b) reads as rewritten:
"(b) As used in this section:
(1) "Medical assistance" means medical care services paid for by the North Carolina Medicaid Program on behalf of the recipient:
a. If the recipient is receiving these medical care services as an inpatient in a nursing facility, intermediate care facility for the mentally retarded, or other medical institution, and cannot reasonably be expected to be discharged to return home; or
b. If the recipient is 55
years of age or older and is receiving these medical care services, including
related hospital care and prescription drugs, for nursing facility services services,
personal care services, or home‑ and community‑based services.
(2) "Estate" means all the real and personal property considered assets of the estate available for the discharge of debt pursuant to G.S. 28A‑15‑1."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
CAROLINA ACCESS PROGRAM IMPROVEMENTS
SECTION 10.12.(a) In its effort to achieve anticipated savings in the Medicaid Program of nine million four hundred twenty‑five thousand dollars ($9,425,000) for the 2002‑2003 fiscal year through expansion of the Carolina ACCESS II and Carolina ACCESS III programs, the Department of Health and Human Services shall monitor cost‑savings activities of these programs. Carolina ACCESS II and Carolina ACCESS III programs shall provide the Department detailed information on savings realized from the following cost‑savings activities:
(1) Reductions in hospital admissions;
(2) Reductions in emergency room visits;
(3) Use of best‑prescribing practices;
(4) Increased prescriptions of generic drugs;
(5) Implementation of polypharmacy review;
(6) Reductions in therapy visits;
(7) Improved management of high risk/high cost patients; and
(8) Other strategies implemented by the programs to achieve anticipated savings.
SECTION 10.12.(b) The Department of Health and Human Services shall implement a process for the assessment and review of cost‑effectiveness of the Carolina ACCESS II and Carolina ACCESS III programs. The Division of Medical Assistance shall confirm actual savings realized from the use of case management strategies of the Carolina ACCESS II and Carolina ACCESS III demonstration sites. The Department shall report quarterly the cost‑effectiveness of these programs based on actual savings achieved. 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, the Office of State Budget and Management, and the Fiscal Research Division.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 10.13. Section 19 of S.L. 2001‑513 reads as rewritten:
"SECTION 19.
Notwithstanding any other provision of law to the contrary, from funds
available in the General Fund, there is appropriated to the Department of
Health and Human Services, Division of Medical Assistance, the sum of two
hundred forty‑six thousand, seven hundred sixty‑two dollars
($246,762) for the 2001‑2002 fiscal year and the sum of four hundred
thousand dollars ($400,000) for the 2002‑2003 fiscal year. These
funds shall be used to provide optional circumcision procedures for newborns
eligible for Medicaid."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
MEDICAID CASE MANAGEMENT SERVICES
SECTION 10.14.(a) The Department of Health and Human Services shall reduce Medicaid Program expenditures for case management services for adults and children by thirty‑three percent (33%) for the 2002‑2003 State fiscal year. In determining how to allocate this reduction, the Department shall include all State programs currently providing case management services reimbursed by the Medicaid Program, and shall consider the following issues:
(1) Elimination of all duplicative case management services.
(2) Consolidation of similar case management services.
(3) Provision of only one case manager per family reimbursed through the Medicaid Program, when feasible.
(4) Equitable allocation of reductions in case management services reimbursed by Medicaid among the different programs that provide case management services.
(5) Identification of the children and adults with the greatest case management needs to determine how to allocate reductions and remaining resources.
(6) Reductions in administrative costs associated with providing case management services reimbursed by Medicaid.
SECTION 10.14.(b) Not later than October 1, 2002, the Department shall report on its plan for the reductions required in this section. 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.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
FEDERAL WAIVERS TO ASSIST IN MEDICAID COST CONTAINMENT
SECTION 10.15.(a) The Department of Health and Human Services shall develop a plan for using federal waivers to assist in long‑term cost containment for the State's Medicaid program. In developing the plan, the Department shall determine whether single or multiple federal waivers will help the State achieve its goal of long‑term cost containment for the State's Medicaid program, and shall also determine which type of waiver is likely to be most helpful. The Department shall consider all of the following for development of the plan:
(1) Which optional categories of persons eligible for Medicaid will be covered by the waiver.
(2) What optional Medicaid services will be included in the service package covered by the waiver.
(3) What types of cost‑sharing will be required under the waiver.
(4) Will the waiver use Carolina ACCESS, other types of managed care, or will a fee‑for‑service system for providing health care services be used.
(5) Will private insurance coverage options be incorporated into the waiver.
(6) Should the NC Health Choice Program be included in the waiver.
SECTION 10.15.(b) On or before February 1, 2003, the Department shall report on its plan for seeking federal waivers to achieve long‑term cost containment in the State's Medicaid program. The report shall be made 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 the following:
(1) Copy of the application for the waiver.
(2) Description of how the waiver will help achieve long‑term cost containment in the State's Medicaid program.
(3) Description of legislation necessary to implement the proposed waiver.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
COMMUNITY ALTERNATIVES PROGRAMS
SECTION 10.16.(a) The Department of Health and Human Services shall administer all Community Alternative Program (CAP) waivers in the most economical and efficient manner possible to support within funds appropriated the maximum number of persons meeting participation requirements under the waiver. The Department shall amend the waivers, as necessary, to ensure that participation requirements and payment and service limits are in accordance with those reported to the General Assembly. Not later than October 1, 2002, the Department shall submit a report that outlines efficient use of funds appropriated and that demonstrates the participation requirements, payment and service limits, and other administrative actions to support the maximum number of persons to be served in the applicable State fiscal year. 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, and the Fiscal Research Division.
SECTION 10.16.(b) CAP‑DA services shall be provided for the 2002‑2003 fiscal year to any eligible person who entered a nursing facility on or before June 1, 2002, notwithstanding that the availability of CAP‑DA services may be suspended for that fiscal year.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
DISPOSITION OF DISPROPORTIONATE SHARE RECEIPT CHANGE
SECTION 10.17.(a) Disproportionate share receipts reserved at the end of the 2002‑2003 fiscal year shall be deposited with the Department of State Treasurer as nontax revenue for the 2002‑2003 fiscal year.
SECTION 10.17.(b) For the 2002‑2003 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, Purcell, Plyler, Lee
SECTION 10.18. The Department of Health and Human Services shall reduce Medicaid payments to hospitals by one‑half of one percent (.5%) for the 2002‑2003 State fiscal year. The Department shall evaluate all medical payment programs and policies administered by the Department that may affect the future viability and sustainability of financially vulnerable hospitals. Based on the evaluation of the medical payments programs and policies affecting hospitals, the Department shall implement the one half of one percent (.5%) reduction for the 2002‑2003 State fiscal year such that the reduction has the least impact on the future viability and sustainability of financially vulnerable hospitals. The Department shall also review the status of financially vulnerable hospitals to determine whether additional State actions are appropriate to ensure that communities served by these hospitals continue to receive essential medical services. The Department shall consult with the North Carolina Hospital Association while conducting the evaluation of medical payment programs and policies and determining how to implement the one‑half of one percent (.5%) reduction. The Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on its activities under this section not later than October 1, 2002.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 10.19. Section 21.26(b) of S.L. 2001‑424 reads as rewritten:
"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.
The Department may adopt temporary rules in accordance with G.S. 150B‑21.1 when it finds these rules are necessary to clarify recipient appeal rights related to the pharmacy management plan."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 10.20. G.S. 108A‑70.21 reads as rewritten:
"§ 108A‑70.21. Program eligibility; benefits; enrollment fee and other cost‑sharing; coverage from private plans; purchase of extended coverage.
(a) Eligibility. – The Department may enroll eligible children based on availability of funds. Following are eligibility and other requirements for participation in the Program:
(1) Children must:
a. Be under the age of 19;
b. Be ineligible for Medicaid, Medicare, or other federal government‑sponsored health insurance;
c. Be uninsured;
d. Be in a family that meets the following family income requirements:
1. Infants under the age of one year whose family income is from one hundred eighty‑five percent (185%) through two hundred percent (200%) of the federal poverty level;
2. Children age one year through five years whose family income is above one hundred thirty‑three percent (133%) through two hundred percent (200%) of the federal poverty level; and
3. Children age six years through eighteen years whose family income is above one hundred percent (100%) through two hundred percent (200%) of the federal poverty level;
e. Be a resident of this State and eligible under federal law; and
f. Have paid the Program enrollment fee required under this Part.
(2) Proof of family income and residency and declaration of uninsured status shall be provided by the applicant at the time of application for Program coverage. The family member who is legally responsible for the children enrolled in the Program has a duty to report any change in the enrollee's status within 60 days of the change of status.
(3) If a responsible parent is under a court order to provide or maintain health insurance for a child and has failed to comply with the court order, then the child is deemed uninsured for purposes of determining eligibility for Program benefits if at the time of application the custodial parent shows proof of agreement to notify and cooperate with the child support enforcement agency in enforcing the order.
If health insurance other than under the Program is provided to the child after enrollment and prior to the expiration of the eligibility period for which the child is enrolled in the Program, then the child is deemed to be insured and ineligible for continued coverage under the Program. The custodial parent has a duty to notify the Department within 10 days of receipt of the other health insurance, and the Department, upon receipt of notice, shall disenroll the child from the Program. As used in this paragraph, the term "responsible parent" means a person who is under a court order to pay child support.
(4) Except as otherwise provided in this section, enrollment shall be continuous for one year. At the end of each year, applicants may reapply for Program benefits.
(b) Benefits. – Except as
otherwise provided for eligibility, fees, deductibles, copayments, and other
cost‑sharing charges, health benefits coverage provided to children
eligible under the Program shall be equivalent to coverage provided for
dependents under the North Carolina Teachers' and State Employees'
Comprehensive Major Medical Plan, including optional prepaid plans.
Prescription drug providers shall accept as payment in full, for outpatient
prescriptions filled, ninety percent (90%) of the average wholesale price for the
prescription drug or the amounts published by the Health Care Financing
Administration Centers for Medicare and Medicaid Services plus a fee
established by the provider not to exceed the amount authorized under
subdivision (d)(3) of this section. dispensing fee of five dollars and sixty
cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per
prescription for brand name drugs. All other health care providers
providing services to Program enrollees shall accept as payment in full for services
rendered the maximum allowable charges under the North Carolina Teachers'
and State Employees' Comprehensive Major Medical Plan Medicaid Program
for services less any copayments assessed to enrollees under this Part. No
child enrolled in the Plan's self‑insured indemnity program shall be
required by the Plan to change health care providers as a result of being
enrolled in the Program.
In addition to the benefits provided under the Plan, the following services and supplies are covered under the Health Insurance Program for Children established under this Part:
(1) Dental: Oral examinations, teeth cleaning, and scaling twice during a 12‑month period, full mouth X rays once every 60 months, supplemental bitewing X rays showing the back of the teeth once during a 12‑month period, fluoride applications twice during a 12‑month period, sealants, simple extractions, therapeutic pulpotomies, prefabricated stainless steel crowns, and routine fillings of amalgam or other tooth‑colored filling material to restore diseased teeth. No benefits are to be provided for services under this subsection that are not performed by or upon the direction of a dentist, doctor, or other professional provider approved by the Plan nor for services and materials that do not meet the standards accepted by the American Dental Association.
(2) Vision: Scheduled routine eye examinations once every 12 months, eyeglass lenses or contact lenses once every 12 months, routine replacement of eyeglass frames once every 24 months, and optical supplies and solutions when needed. Optical services, supplies, and solutions must be obtained from licensed or certified opthamologists, optometrists, or optical dispensing laboratories. Eyeglass lenses are limited to single vision, bifocal, trifocal, or other complex lenses necessary for a Plan enrollee's visual welfare. Coverage for oversized lenses and frames, designer frames, photosensitive lenses, tinted contact lenses, blended lenses, progressive multifocal lenses, coated lenses, and laminated lenses is limited to the coverage for single vision, bifocal, trifocal, or other complex lenses provided by this subsection. Eyeglass frames are limited to those made of zylonite, metal, or a combination of zylonite and metal. All visual aids covered by this subsection require prior approval of the Plan. Upon prior approval by the Plan, refractions may be covered more often than once every 12 months.
(3) Hearing: Auditory diagnostic testing services and hearing aids and accessories when provided by a licensed or certified audiologist, otolaryngologist, or other hearing aid specialist approved by the Plan. Prior approval of the Plan is required for hearing aids, accessories, earmolds, repairs, loaners, and rental aids.
(c) Annual Enrollment Fee. – There shall be no enrollment fee for Program coverage for enrollees whose family income is at or below one hundred fifty percent (150%) of the federal poverty level. The enrollment fee for Program coverage for enrollees whose family income is above one hundred fifty percent (150%) of the federal poverty level shall be fifty dollars ($50.00) per year per child with a maximum annual enrollment fee of one hundred dollars ($100.00) for two or more children. The enrollment fee shall be collected by the county department of social services and retained to cover the cost of determining eligibility for services under the Program. County departments of social services shall establish procedures for the collection of enrollment fees.
(d) Cost‑Sharing. – There
shall be no deductibles, copayments, or other cost-sharing charges for families
covered under the Program whose family income is at or below one hundred fifty
percent (150%) of the federal poverty level.
(1) Families covered under the Program whose family income is at or below one hundred fifty percent (150%) of the federal poverty level shall be responsible for copayments to providers as follows:
a. Two dollars ($2.00) per child for each visit to a provider, except that there shall be no copayment required for well-baby, well-child, or age-appropriate immunization services;
b. One dollar ($1.00) for each outpatient generic prescription drug purchased;
c. Three dollars ($3.00) for each outpatient brand-name prescription drug purchased;
d. Ten dollars ($10.00) for each emergency room visit unless:
1. The child is admitted to the hospital, or
2. No other reasonable care was available as determined by the Claims Processing Contractor of the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan.
(2) Families covered under the Program whose family income is above one hundred fifty percent (150%) of the federal poverty level shall be responsible for copayments to providers as follows:
(1)a. Five
dollars ($5.00) Seven dollars ($7.00) per child for each visit to a
provider, except that there shall be no copayment required for well‑baby,
well‑child, or age‑appropriate immunization services;
(2)b. Five
dollars ($5.00) Seven dollars ($7.00) per child for each outpatient
hospital visit;
(3)c. A six-dollar
($6.00) five-dollar ($5.00) fee for each outpatient generic prescription
drug purchased;
d. A ten-dollar ($10.00) fee for each outpatient brand-name prescription drug purchased;
(4)e. Twenty
dollars ($20.00) Thirty dollars ($30.00) for each emergency room
visit unless:
a.1. The child
is admitted to the hospital, or
b.2. No other
reasonable care was available as determined by the Claims Processing Contractor
of the North Carolina Teachers' and State Employees' Comprehensive Major
Medical Plan.
Copayments required under this subsection for prescription drugs apply only to prescription drugs prescribed on an outpatient basis.
(e) Cost‑Sharing Limitations. – The total annual aggregate cost‑sharing, including fees, with respect to all children in a family receiving Program benefits under this Part shall not exceed five percent (5%) of the family's income for the year involved. To assist the Department in monitoring and ensuring that the limitations of this subsection are not exceeded, the Executive Administrator and Board of Trustees of the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan shall provide data to the Department showing cost‑sharing paid by Program enrollees.
(f) Coverage From Private Plans. – The Department shall, from funds available for the Program, pay the cost for dependent coverage provided under a private insurance plan for persons eligible for coverage under the Program if all of the following conditions are met:
(1) The person eligible for Program coverage requests to obtain dependent coverage from a private insurer in lieu of coverage under the Program and shows proof that coverage under the private plan selected meets the requirements of this subsection;
(2) The dependent coverage under the private plan is actuarially equivalent to the coverage provided under the Program and the private plan does not engage in the exclusive enrollment of children with favorable health care risks;
(3) The cost of dependent coverage under the private plan is the same as or less than the cost of coverage under the Program; and
(4) The total annual aggregate cost‑sharing, including fees, paid by the enrollee under the private plan for all dependents covered by the plan, do not exceed five percent (5%) of the enrollee's family income for the year involved.
The Department may reimburse an enrollee for private coverage under this subsection upon a showing of proof that the dependent coverage is in effect for the period for which the enrollee is eligible for the Program.
(g) Purchase of Extended Coverage. – An enrollee in the Program who loses eligibility due to an increase in family income above two hundred percent (200%) of the federal poverty level and up to and including two hundred twenty‑five percent (225%) of the federal poverty level may purchase at full premium cost continued coverage under the Program for a period not to exceed one year beginning on the date the enrollee becomes ineligible under the income requirements for the Program. The same benefits, copayments, and other conditions of enrollment under the Program shall apply to extended coverage purchased under this subsection.
(h) No State Funds for Voluntary Participation. – No State or federal funds shall be used to cover, subsidize, or otherwise offset the cost of coverage obtained under subsection (g) of this section."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
NC HEALTH CHOICE STATE PLAN technical amendments
SECTION 10.21. The Department of Health and Human Services may rewrite and submit to the federal government the State Plan for the North Carolina Health Choice Program solely for the purpose of incorporating amendments enacted by the 1997 General Assembly, Regular Session 1998, the 1999 General Assembly, and the 2001 General Assembly, and to otherwise comply with applicable federal requirements. Nothing in this section authorizes the Department to make amendments to the State Plan for the North Carolina Health Choice Program not otherwise authorized by the General Assembly. Amendments to the State Plan required by the federal government to be implemented after the effective date of this section, other than those authorized by this section, shall comply with G.S. 108A‑70.25.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
Medicaid Contracting for Services
SECTION 10.22. When developing contracts for services, the Department of Health and Human Services, Division of Medical Assistance, shall ensure that Medicaid recipients have appropriate access to durable medical equipment, home health supplies, and home infusion therapy. The Division may subcontract for services provided that the subcontract ensures appropriate access to durable medical equipment, home health supplies, and home infusion therapy.
subpart 3. division of mental health, developmental disabilities, and substance abuse services
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
ALLOCATION OF REDUCTIONS IN FUNDS FOR AREA MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE PROGRAMS
SECTION 10.23.(a) The Department of Health and Human Services shall allocate reductions in funding to area mental health, developmental disabilities, and substance abuse services in the amount of twenty‑nine million two hundred forty‑six thousand nine hundred seven dollars ($29,246,907) for the 2002‑2003 fiscal year. In allocating the reductions, the Department shall do the following:
(1) Allocate reductions within the implementation scope of the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services and in accordance with the intent of S.L. 2001‑437, as follows:
a. Priority given to reducing or terminating services to persons with lower service needs;
b. Persons with highest need levels shall be impacted least by reductions in services;
c. Administrative costs shall be reduced concurrently with reductions in services; and
d. To the maximum extent possible no reductions, or minimal reductions, shall be allocated to activities associated with critical functions and federal and State requirements.
(2) Require area authorities and county programs to submit plans for prior approval by the Department describing how the local program will meet its reduction target within the requirements of subdivision (1) of this subsection.
SECTION 10.23.(b) The Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall allocate reductions to Division central administration to items of expenditures which have the least impact on:
(1) The support of direct services to individuals served in State facilities and local programs;
(2) The Division's ability to reorganize and continue implementation of the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services; and
(3) The Division's ability to meet State and federal requirements such as monitoring, program oversight, and reporting.
SECTION 10.23.(c) All reductions designated for Division‑operated State facilities shall be allocated as follows:
(1) In a manner that has the least impact possible on the State's ability to comply with Olmstead v. L.C. & E.W. and The Civil Rights of Institutionalized Persons Act (CRIPA);
(2) Maximum resources shall be retained for the purpose of transfer to local programs for community capacity building as the population in State facilities decreases and the principal focus of services transitions to community‑based programs;
(3) As deemed essential by the Secretary of the Department of Health and Human Services for compliance with implementation of the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services, and with Olmstead v. L.C. & E.W. and CRIPA, reduction amounts and total number of positions reduced may be shifted among facilities so long as the aggregate reduction in State appropriations is achieved.
SECTION 10.23.(d) The Department shall report not later than October 1, 2002, on a plan for allocating the reductions required under this section. The plan shall describe each reduction allocation demonstrating compliance with this section. 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.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SUBSTANCE ABUSE PREVENTION SERVICES
SECTION 10.24.(a) In order to ensure that individuals receive effective substance abuse prevention services, 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 individuals:
(1) Designate an Office of Substance Abuse Prevention within the Department as outlined in the North Carolina Comprehensive Strategic Plan for Substance Abuse Prevention. This Office shall be responsible for the implementation of the goals in the Comprehensive Strategic Plan for Substance Abuse Prevention. The Office shall also maintain the Interagency Agreement for Substance Abuse Prevention Services and ensure continuing collaboration between agencies that are parties to the Agreement.
(2) Provide only those prevention services that are evidence‑based and have been determined to be effective in preventing alcohol and other drug problems.
(3) Propose rules for the licensure of prevention programs to ensure quality of service delivery in local communities. Rules shall be subject to review and adoption by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services.
(4) Ensure that services are provided by qualified prevention professionals.
(5) Implement an outcome‑based system utilizing standard risk assessments and data elements consistent with appropriate evaluation of prevention programs.
SECTION 10.24.(b) The Department shall report on its activities 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 December 1, 2002.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
PRIVATE AGENCY UNIFORM COST‑FINDING REQUIREMENT
SECTION 10.25. Section 21.56 of S.L. 2001‑424, as amended by S.L. 2001‑513, reads as rewritten:
"SECTION 21.56.(a)
To ensure uniformity in rates charged to area programs and funded with State‑allocated
resources, the Division of Mental Health, Developmental Disabilities, and
Substance Abuse Services of the Department of Health and Human Services may
require a private agency that provides services under contract with two or
more area programs, an area program or county program, except for
hospital services that have an established Medicaid rate, to complete an agency‑wide
uniform cost finding. The resulting cost shall be the maximum included for the
private agency in the contracting area program's unit cost finding.
SECTION 21.56.(b) If a private agency fails to timely and accurately complete the required agency-wide uniform cost finding in a manner acceptable to the Department's controller's office, the Department may suspend all Department funding and payment to the private agency until such time as an acceptable cost finding has been completed by the private agency and approved by the Department's controller's office."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 10.26. Section 21.61(a) of S.L. 2001‑424 reads as rewritten:
"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. Assessments and service planning alternatives shall also be
undertaken for children on the waiting list for placement at Whitaker School to
ensure appropriate and safe placement for those children. The Department
shall report on the status of its compliance with this section on April 1, 2002
and again on October 1, 2002. January 1, 2003. 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, Purcell, Plyler, Lee
AREA MENTAL HEALTH ADMINISTRATIVE COSTS
SECTION 10.27. Section 21.65 of S.L. 2001‑424 reads as rewritten:
"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.
SECTION 21.65.(c) Beginning in the 2002-2003 fiscal year, the Department may implement alternative approaches to establish reasonable administrative cost limitations for Local Management Entities (LMEs), including both county programs and area authority models, and service providers in accordance with system reform and changes in system funding structures."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
MENTAL RETARDATION CENTER DOWNSIZING
SECTION 10.28. Section 21.67 of S.L. 2001‑424 reads as rewritten:
"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.October 1, 2002.
SECTION 21.67.(c) Downsizing of mental retardation centers which occurs in the 2002 fiscal year shall be maintained for the 2003 fiscal year. Effective July 1, 2002, downsizing shall be accomplished in accordance with the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services. All savings resulting from downsizing occurring on and after July 1, 2002, shall be utilized as set forth in subsection (a1) of this section."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
STATE PSYCHIATRIC HOSPITAL BED DAY ALLOCATION PLAN
SECTION 10.29. Section 21.68A of S.L. 2001‑424 reads as rewritten:
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
EXTEND CONSUMER ADVOCACY PROGRAM CONTINGENT UPON FUNDS APPROPRIATED BY the 2003 GENERAL ASSEMBLY
SECTION 10.30. Section 4 of S.L. 2001‑437 reads as rewritten:
"SECTION 4. Sections
1.1 through 1.21(b) of this act become effective July 1, 2002. Section 2 of
this act becomes effective July 1, 2002, only if funds are appropriated by
the 2001 General Assembly, Regular Session 2002, for that purpose. only
if funds are appropriated by the 2003 General Assembly for that purpose. Section
2 of this act becomes effective July 1 of the fiscal year for which funds are
appropriated by the 2003 General Assembly for that purpose. The remainder
of this act is effective when it becomes law."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 10.31.(a) The Secretary of the Department of Health and Human Services and the Chairs of the Commissions listed in this section shall collaborate in the development of a process for identifying and resolving issues pertaining to duplication and conflict of rules adopted by the Secretary and each Commission that affect the area of mental health, developmental disabilities, and substance abuse services. The process shall address the following:
(1) How to identify on a routine basis proposed rules that duplicate in whole or in part other rules proposed or adopted and ways of avoiding the duplication without interfering with the agency's statutory duty to adopt the rule and without impairing the effectiveness of the rule in carrying out the statutory mandate.
(2) How to identify on a routine basis adopted rules that are in conflict, proposed rules that conflict with other proposed or adopted rules, and ways of addressing the conflict without interfering with the agency's statutory duty to adopt the rule and without impairing the effectiveness of the rule in carrying out the statutory mandate.
The following Commissions shall collaborate with the Secretary on the development of this process: the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services, the Social Services Commission, the Commission for Health Services, the Medical Care Commission, and other Commissions that adopt rules affecting the area of mental health, developmental disabilities, and substance abuse services that the Secretary has a duty to implement. The Secretary shall also involve a representative of the Division of Medical Assistance in this effort.
SECTION 10.31.(b) The Secretary and the Commissions shall implement the process required by Section 1 of this act not later than October 1, 2002. Not later than October 15, 2002, the Secretary shall report to the Joint Legislative Commission on Mental Health, Developmental Disabilities, and Substance Abuse Services the following:
(1) The status of the review of rules conducted by the Department for determining the existence of ambiguity, duplication, or conflict.
(2) Specific rules identified that are in conflict and the recommended action for resolving the conflict.
(3) Statutory changes necessary to accomplish the purposes of the rules review process required by Section 1 of this act.
subpart 4. division of social services
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
Special Needs Adoption Incentive Fund Reporting Date
SECTION 10.32. Section 21.42(d) of S.L. 2001‑424 reads as rewritten:
"SECTION 21.42.(d)
The Department of Health and Human Services shall report on the use of these
funds no later than April 1, 2002,2003, 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, Purcell, Plyler, Lee
Child Welfare Systems Pilots Reports
SECTION 10.33.(a) Section 21.46(a) of S.L. 2001‑424 reads as rewritten:
"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.neglect
and dependency."
SECTION 10.33.(b) The Department of Health and Human Services shall report on any activities conducted under Section 21.46 of S.L. 2001‑424 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, 2003.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
Family Resource Centers – Reporting requirement
SECTION 10.34. Section 21.48(e) of S.L. 2001‑424 reads as rewritten:
"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, 2002.2003."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
eliminate Additional Funds for Child Support Services
SECTION 10.35. Section 21.54A of S.L. 2001‑424 reads as rewritten:
"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,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, Purcell, Plyler, Lee
STATE/COUNTY SPECIAL ASSISTANCE
SECTION 10.36. Section 21.44(d) of S.L. 2001‑424 reads as rewritten:
"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.one thousand ninety-one dollars ($1,091) per
month per resident."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
ELECTING COUNTY TANF FUNDS REVERT
SECTION 10.37. G.S. 108A‑27.11(c) reads as rewritten:
"(c) Each Electing
County's allocation for Work First Family Assistance shall be computed based on
the percentage of each Electing County's total expenditures for cash assistance
to statewide actual expenditures for cash assistance in 1995‑96. The
resulting percentage shall be applied to the federal TANF block grant funds
appropriated for cash assistance by the General Assembly each fiscal year. The
Department shall transmit the federal funds contained in the county block
grants to Electing Counties as soon as practicable after they become available
to the State and in accordance with federal cash management laws and
regulations. The Department shall transmit one‑fourth of the State funds
contained in county block grants to Electing Counties at the beginning of each
quarter. Once paid, the county block grant funds shall not revert."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
ADULT CARE HOME MODEL FOR COMMUNITY‑BASED SERVICES
SECTION 10.38. Section 21.54(b) of S.L. 2001‑424 reads as rewritten:
"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. March 1, 2003. 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, Purcell, Plyler, Lee
ADULT CARE HOME RESIDENT ASSESSMENT SERVICES program repealed
SECTION 10.39. Section 21.35 of S.L. 2001‑424 is repealed.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
State/County Special Assistance Rate Methodology
SECTION 10.40.(a) The Department of Health and Human Services shall develop a plan to address the short‑term and long‑term recommendations of the report titled "Reimbursement of Adult Care Homes in North Carolina: A Study of the Special Assistance Rate Methodology, May, 2002." The plan shall include:
(1) Setting the rate at the median plus a percentage;
(2) Excluding low‑occupancy facilities from the rate‑setting methodology; and
(3) Adjusting fixed costs for inflation.
SECTION 10.40.(b) The Department shall implement the following changes to the adult care home cost reports:
(1) Revise the Direct Cost category to include: housekeeping/laundry, health services, dietary services, recreational activities, and initial orientation/aide training;
(2) Revise the Indirect Cost category to include: administration/general and operation/maintenance;
(3) Revise the category of other Cost centers to include: personal care, medically related transportation, and mental health services;
(4) Create a capital cost center category to include property/ownership/use;
(5) Create a nonreimbursable cost category; and
(6) Define allowable and nonallowable expenditures.
The Department of Health and Human Services shall make the new cost report format available to each facility 90 days prior to implementation.
SECTION 10.40.(c) The Department shall expand current audit policies and procedures for auditing provider costs. The Department shall create an audit function that is directly answerable to the State and involves fewer but more detailed audits. All providers of services to State County Special Assistance recipients shall be subject to a State audit if selected. The specific audit requirements shall be based on auditing requirements of governmental programs providing similar services. The Department of Health and Human Services shall expand current audit procedures for State County Special Assistance to include auditing of costs associated with personal care services reimbursed by Medicaid.
SECTION 10.40.(e) The Department shall report on the progress of the implementations of the requirements of this section no later than December 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, Purcell, Plyler, Lee
Special Children Adoption Fund
SECTION 10.41. Section 21.40(b) of S.L. 2001‑424 reads as rewritten:
"SECTION
21.40.(b) Of the total funds appropriated for the Special Children
Adoption Fund, each year one million dollars ($1,000,000)twenty percent
(20%) of the total funds available shall be reserved for payment to
participating private adoption agencies. If the funds reserved in this
subsection for payments to private adoption agencies have not been spent on or
before March 31, 2002,2003, 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, Purcell, Odom, Plyler, Lee
FOOD BANKS FUNDS
SECTION 10.41A.(a) Of the funds appropriated in this act to the Department of Health and Human Services, the sum of nine hundred thousand dollars ($900,000) for the 2002-2003 fiscal year shall be allocated to the Division of Social Services. These funds shall be equally distributed to the regional network of food banks in North Carolina.
SECTION 10.41A.(b) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Social Services, the sum of five hundred fifty thousand dollars ($550,000) for the 2002-2003 fiscal year shall be used to replace federal funds for Boys and Girls Clubs across the State.
SECTION 10.41A.(c) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Aging, the reduction in funds allocated for Area Agencies on Aging administration shall be four hundred fifty thousand dollars ($450,000) for the 2002-2003 fiscal year.
SECTION 10.41A.(d) Of the funds appropriated in this act to the Department of Health and Human Services, Office of the Secretary, the reduction in funds to the Loan Repayment Incentive Funds program shall be one million six hundred eighty-nine thousand one hundred twenty one dollars ($1,689,121) for the 2002-2003 fiscal year.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
ALZHEIMER'S ASSOCIATION FUNDS FY 2001‑2002
SECTION 10.42. Section 21.31 of S.L. 2001‑424 reads as rewritten:
(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, Purcell, Plyler, Lee
GOVERNOR'S ADVISORY COUNCIL ON AGING
SECTION 10.43. G.S. 143B‑181 reads as rewritten:
"§ 143B‑181. Governor's Advisory Council on Aging – members; selection; quorum; compensation.
The Governor's Advisory Council on
Aging of the Department of Health and Human Services shall consist of 33
members, 29 members to be appointed by the Governor, two members to be
appointed by the President Pro Tempore of the Senate, and two members to be
appointed by the Speaker of the House of Representatives. The composition of
the Council shall be as follows: one representative of the Department of
Administration; one representative of the Department of Cultural Resources; one
representative of the Employment Security Commission; one representative of the
Teachers' and State Employees' Retirement System; one representative of the
Commissioner of Labor; one representative of the Department of Public
Instruction; one representative of the Department of Environment and Natural
Resources; one representative of the Department of Insurance; one
representative of the Department of Crime Control and Public Safety; one
representative of the Department of Community Colleges; one representative of
the School of Public Health of The University of North Carolina; one
representative of the School of Social Work of The University of North
Carolina; one representative of the Agricultural Extension Service of North
Carolina State University; one representative of the collective body of the
Medical Society of North Carolina; and 19 members at large. The at large
members shall be citizens who are knowledgeable about services supported
through the Older Americans Act of 1965, as amended, and shall include persons
with greatest economic or social need, minority older persons, and participants
in programs under the Older Americans Act of 1965, as amended. The Governor
shall appoint 15 members at large who meet these qualifications and are 60
years of age or older. The four remaining members at large, two of whom shall
be appointed by the President Pro Tempore of the Senate and two of whom shall
be appointed by the Speaker of the House of Representatives, shall be broadly
representative of the major private agencies and organizations in the State who
are experienced in or have demonstrated particular interest in the special
concerns of older persons. At least one of each of the at‑large
appointments of the President Pro Tempore of the Senate and the Speaker of the
House of Representatives shall be persons 60 years of age or older. The Council
shall meet at least quarterly.biannually.
Members at large shall be appointed for four‑year terms and until their successors are appointed and qualify. Ad interim appointments shall be for the balance of the unexpired term.
The Governor shall have the power to remove any member of the Council from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.
The Governor shall designate one member of the Council as chair to serve in such capacity at his pleasure.
Members of the Council shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.
A majority of the Council shall constitute a quorum for the transaction of business.
All clerical and other services required by the Council shall be supplied by the Secretary of Health and Human Services."
subpart 6. office of educational services
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 10.44. The Office of Education Services shall report not later than December 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 on the activities of the Eastern North Carolina School for the Deaf at Wilson, the North Carolina School for the Deaf at Morganton, and the Governor Morehead School for the Blind. The report shall include enrollment numbers at the schools, the budgets, and the academic status of the schools as defined under the ABC’s program.
subpart 7. division of public health
Requested by: Senators Martin of Guilford, Purcell, Warren, Plyler, Lee
HEART DISEASE AND STROKE PREVENTION TASK FORCE
SECTION 10.45. Section 21.95 of S.L. 2001‑424 reads as rewritten:
"SECTION 21.95. The
Heart Disease and Stroke Prevention Task Force, created in subsection (l) of
Section 26.9 of Chapter 507 of the 1995 Session Laws, as amended, shall submit
to the Governor and the General Assembly a sixth interim report within the
first week of the convening of the 2001 General Assembly, 2002 Regular Session,
and a seventh interim report within the first week of the convening of the 2003
General Assembly. Notwithstanding Section 11.57 of S.L. 1999‑237, the
Task Force shall submit a final report to the Governor and the General
Assembly by June 30, 2003. by June 30, 2003, and, upon submission of its
final report to the Governor and the General Assembly, the Task Force shall
expire."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
NEWBORN HEARING SCREENING PROGRAM REPORT
SECTION 10.46. Section 21.96 of S.L. 2001‑424 reads as rewritten:
"SECTION 21.96. The Department of Health and Human Services shall report the following information on the newborn hearing screening program:
(1) Unduplicated number of infants screened.
(2) Number of infants who failed the second hearing screening.
(3) Number of infants receiving the diagnostic evaluation.
(4) Number and types of services provided.
(5) Number and types of follow‑up services provided to children.
The Department shall submit the 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. The Department shall report not later than January 1, 2003, on its 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."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
SECTION 10.47. Section 21.97(b) of S.L. 2001‑424 reads as rewritten:
"SECTION
21.97.(b) The Division shall require in‑home visitors to collect
data on program participants as a condition of participation. This requirement
shall include six‑month periodic assessments and completion of the
questionnaires. The Department shall ensure that the collection, maintenance,
use, and disclosure of data complies with applicable State and federal law
protecting privacy of health and other individual information. By April 1, 2002,
2003, the Division 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 following
items:
(1) Number of clients/families enrolled per county.
(2) Attrition and reasons why families leave the program.
(3) Average number of home visits per month.
(4) Average time involved per home visit.
(5) Baseline family characteristics.
(6) Health behaviors.
(7) Perinatal and birth outcomes.
(8) Other relevant outcome information.
All program information shall include the identification of the model used in order to compare these models in the future."
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
AIDS Drug Assistance Program (ADAP)
SECTION 10.48.(a) Section 21.90(b) of S.L. 2001‑424 reads as rewritten:
"SECTION 21.90.(b)
For the 2001‑2002 fiscal year and for the 2002‑2003 fiscal year,
HIV‑positive individuals with incomes at or below one hundred twenty‑five
percent (125%) of the federal poverty level are eligible for participation in
ADAP. Eligibility for participation in ADAP may be extended to individuals
with incomes up to one hundred fifty percent (150%) of the federal poverty
level only after the Office of State Budget and Management certifies in writing
that the Department has developed an information management system pursuant to
subsection (a) of this section. Until the Office of State Budget and Management
makes this certification, eligibilityEligibility for participation
in ADAP during the 2001‑2003 fiscal biennium shall not be extended to
individuals with incomes above one hundred twenty‑five percent (125%) of
the federal poverty level. Following six months of increased eligibility
at one hundred fifty percent (150%) of the federal poverty level, eligibility
for participation in ADAP shall be extended to individuals with incomes up to
one hundred seventy‑five percent (175%) of the federal poverty level for
the remainder of the 2001‑2002 fiscal year. Beginning July 1, 2002,
eligibility for participation in the ADAP shall be extended to individuals with
incomes up to two hundred percent (200%) of the federal poverty level."
SECTION 10.48.(b) The Department of Health and Human Services shall develop a plan to manage costs in ADAP and to serve additional participants within additional resources. The plan shall include an assessment of the following, including, where applicable, a review of other states' actions in these areas:
(1) Limiting the drug formulary.
(2) Capping expenditures on a per participant/per month basis.
(3) Providing financial assistance to participants for health care program premiums.
SECTION 10.48.(c) The Department shall report on activities conducted under this section and under Section 21.90 of S.L. 2001‑424 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. The Department shall submit an interim report not later than December 1, 2002, and a final report not later than May 1, 2003.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
PRESCRIPTION DRUG ASSISTANCE PROGRAM
SECTION 10.49.(a) Section 21.88 of S.L. 2001‑424 reads as rewritten:
"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."
SECTION 10.49.(b) It is the intent of the General Assembly that funding for prescription drug assistance provided by the Health and Wellness Trust Fund shall include funds for the transition of benefits formerly provided under the Prescription Drug Assistance Program.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
REPEAL DENTAL HEALTH PROGRAM IN THE Department of Health and Human Services
SECTION 10.50. Article 14 of Chapter 130A of the General Statutes is repealed.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
RESTRUCTURE ORAL HEALTH SECTION
SECTION 10.51. The Department of Health and Human Services, Division of Public Health, shall restructure the Division's Oral Health Section within the Women's and Children's Health Section. The restructuring shall result in broadening the scope of the Oral Health Section responsibilities to begin to address a more comprehensive school health program throughout the State. The Division shall ensure that positions and resources within the Oral Health Section are also transferred to meet the requirements of a comprehensive school health program. The Division of Public Health shall report not later than December 1, 2002, on the Division's reorganization, including restructuring of the Oral Health Section. The Division shall submit the report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee
Early Intervention Program ‑ Reporting Requirement
SECTION 10.52. The Department of Health and Human Services shall report on the activities conducted under Section 21.79 of S.L. 2001‑424 to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than December 1, 2002.
Requested by: Senators Martin of Guilford, Purcell, Plyler, Lee