GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
S 3
SENATE BILL 1741
Second Edition
Engrossed 5/23/06
Third Edition Engrossed 5/25/06
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Short Title: Modify Appropriations Act of 2005. |
(Public) |
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Sponsors: |
Senators Garrou; Dalton, Hagan, Albertson, Atwater, Berger of Franklin, Bland, Boseman, Clodfelter, Cowell, Dannelly, Dorsett, Graham, Holloman, Hoyle, Kerr, Kinnaird, Lucas, Malone, Purcell, Rand, Snow, Soles, Swindell, and Weinstein. |
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Referred to: |
Appropriations/Base Budget. |
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May 22, 2006
A BILL TO BE ENTITLED
AN ACT to modify the current operations and capital appropriations act of 2005, to enact an early reduction in the sales tax rate and an early reduction in the income TAX RATE APPLICABLE TO MOST SMALL BUSINESSES, TO CAP THE VARIABLE WHOLESALE COMPONENT OF THE MOTOR FUEL TAX RATE AT ITS CURRENT RATE, TO INCREASE the minimum wage, and to provide for the financing of construction of psychiatric hospitals and other capital Projects.
The General Assembly of North Carolina enacts:
PART i. INtroduction and title of act
SECTION 1.1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.
SECTION 1.2. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2006."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund FY 2006‑2007
EDUCATION
Community Colleges System Office $ 43,124,642
Department of Public Instruction 129,758,427
University of North Carolina – Board of Governors
Appalachian State University 2,189
East Carolina University
Academic Affairs (1,589,622)
Health Affairs 0
Elizabeth City State University (28,887)
Fayetteville State University 42,675
NC Agricultural and Technical University (223,690)
North Carolina Central University (312)
North Carolina School of the Arts 29,159
North Carolina State University
Academic Affairs (3,908,353)
Agricultural Extension 0
Agricultural Research 65,287
University of North Carolina at Asheville (569,398)
University of North Carolina at Chapel Hill
Academic Affairs (846,370)
Health Affairs (795,501)
Area Health Education Centers 0
University of North Carolina at Charlotte (471,439)
University of North Carolina at Greensboro (1,138)
University of North Carolina at Pembroke (299,992)
University of North Carolina at Wilmington (100,910)
Western Carolina University (735,491)
Winston‑Salem State University 0
General Administration 0
University Institutional Programs 140,629,097
Related Educational Programs 0
North Carolina School of Science and Mathematics 52,250
UNC Hospitals at Chapel Hill 0
Total $ 131,249,554
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary $ (65,275,120)
Division of Aging 3,000,000
Division of Blind Services/Deaf/HH 75,000
Division of Child Development 35,465,513
Division of Education Services 828,548
Division of Facility Services 0
Division of Medical Assistance (149,850,000)
Division of Mental Health 77,589,934
NC Health Choice 0
Division of Public Health 19,085,242
Division of Social Services 12,799,153
Division of Vocational Rehabilitation Services 0
Total $ (66,281,730)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 3,676,261
Department of Commerce
Commerce 20,222,483
Commerce State‑Aid 500,000
NC Biotechnology Center 4,000,000
Rural Economic Development Center (500,000)
Department of Environment and Natural Resources
Environment and Natural Resources 14,895,997
Clean Water Management Trust Fund 0
Department of Labor 613,894
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 33,281,348
Department of Crime Control and Public Safety 3,675,280
Judicial Department 27,095,425
Judicial Department – Indigent Defense 7,483,129
Department of Justice 5,038,339
Department of Juvenile Justice and Delinquency Prevention 2,527,679
GENERAL GOVERNMENT
Department of Administration $ 4,217,236
Office of Administrative Hearings 281,367
Department of State Auditor 38,500
Office of State Controller 0
Department of Cultural Resources
Cultural Resources 5,130,562
Roanoke Island Commission 0
State Board of Elections 989,516
General Assembly 168,346
Office of the Governor
Office of the Governor 100,000
Office of State Budget and Management 409,938
OSBM – Reserve for Special Appropriations 1,353,253
Housing Finance Agency 17,750,000
Department of Insurance
Insurance 142,057
Insurance – Volunteer Safety Workers' Compensation 0
Office of Lieutenant Governor 88,433
Department of Revenue 1,108,392
Department of Secretary of State 553,067
Department of State Treasurer
State Treasurer 281,784
State Treasurer – Retirement for Fire and Rescue Squad Workers 514,000
TRANSPORTATION
Department of Transportation $ 0
RESERVES, ADJUSTMENTS, AND DEBT SERVICE
Reserve for Compensation Increases $ 692,188,373
Reserve for Teachers' and State Employees' Retirement Rate Adjustment 27,107,200
Retirement System Payback 30,000,000
Information Technology Fund 42,087,229
Reserve for Heating and Cooling Assistance 10,000,000
Reserve for Legal Expenses 1,065,710
Trust Fund for MH, DD, SAS, and Bridge Funding Needs 5,000,000
Establish State Emergency Response Fund 20,000,000
Debt Service
General Debt Service (50,000,000)
Federal Reimbursement 0
TOTAL CURRENT OPERATIONS – GENERAL FUND $ 1,170,935,691
general fund availability statement
SECTION 2.2.(a) Section 2.2(a) of S.L. 2005‑276 is repealed. The General Fund availability used in adjusting the 2006‑2007 budget is shown below:
FY 2006‑2007
Unappropriated Balance from FY 2005‑2006 $ 113,386,988
Less: HB 1868 Emergency Appropriation for
Department of Correction (15,000,000)
Projected Reversions from FY 2005‑2006 125,000,000
Projected Over Collections from FY 2005‑2006 1,072,100,000
Year End Unreserved Credit Balance before Earmarkings $ 1,295,486,988
Less: Credit to Savings Reserve Account $ (323,871,747)
Less: Credit to Repairs and Renovations Reserve Account (225,000,000)
Revised Year End Unreserved Credit Balance $ 746,615,241
Revenues Based on Existing Tax Structure $ 16,951,416,000
Nontax Revenues
Investment Income $ 78,700,000
Judicial Fees 168,605,271
Disproportionate Share 100,000,000
Insurance 51,543,813
Other Nontax Revenues 455,382,930
Subtotal Nontax Revenues $ 854,232,014
Total General Fund Availability $ 18,552,263,255
Adjustments to Availability: 2006 Session
Adjustment to Baseline Revenue Forecast $ 698,864,995
Reduce Sales Tax from 4.5% to 4.25% – January 1, 2007 (118,000,000)
Reduce Top Personal Income Tax Rate to 8.0% – January 1, 2007 (28,600,000)
Reserve for Other Tax Reductions (55,100,000)
Reserve for Highway Fund Hold Harmless (17,600,000)
Reserve for Highway Trust Fund Hold Harmless (5,700,000)
Redirect Portion of Alcohol Excise Tax to Mental Health Trust Fund (9,390,000)
Redirect Court of Justice Fee for Legal Service Programs (1,000,000)
Reduce Transfer from Highway Trust Fund (195,176,407)
Subtotal Adjustments to Availability: 2006 Session $ 268,298,588
Revised General Fund Availability for the 2006‑2007 Fiscal Year $ 18,820,561,843
Less: Total General Fund Appropriations
2006‑2007 Fiscal Year (18,820,561,843)
Unappropriated Balance Remaining $ 0
SECTION 2.2.(b) Notwithstanding G.S. 143‑15.2 and G.S. 143‑15.3A, the State Controller shall transfer two hundred twenty‑five million dollars ($225,000,000) from the unreserved credit balance to the Repairs and Renovations Reserve Account on June 30, 2006. This subsection becomes effective June 30, 2006.
SECTION 2.2.(c) Funds transferred under this section to the Repairs and Renovations Reserve Account are appropriated for the 2006‑2007 fiscal year to be used in accordance with G.S. 143‑15.3A.
SECTION 2.2.(d) Section 2.2(e) of S.L. 2005‑276 is repealed effective June 30, 2006.
This subsection becomes effective June 30, 2006
SECTION 2.2.(e) Section 2.2.(f) of S.L. 2005‑276 reads as rewritten:
"SECTION 2.2.(f)
Notwithstanding G.S. 105‑187.9(b)(1), the sum to be transferred
under that subdivision for the 2005‑2006 fiscal year is two hundred
fifty million dollars ($250,000,000) and for the 2006‑2007 fiscal
year is two hundred fifty million dollars ($250,000,000).fifty‑five
million dollars ($55,000,000)."
SECTION 2.2.(f) Pursuant to G.S. 105‑187.9(b)(2), the sum to be transferred under that subdivision for the 2006‑2007 fiscal year is two million four hundred eighty‑six thousand six hundred two dollars ($2,486,602).
SECTION 2.2.(g) The State Treasurer shall transfer funds reserved to hold harmless the Highway Fund and the Highway Trust Fund from the General Fund to the Highway Fund and the Highway Trust Fund only if the variable wholesale component of the motor fuel excise tax rate in G.S. 105-449.80 would, without the imposition of the cap imposed by Section 24.3 of this act, exceed twelve and four-tenths cents (12.4¢) a gallon. A transfer required under this subsection must be made on a monthly basis. The amount to be transferred from the General Fund to the Highway Fund is the difference between the amount of motor fuel excise tax revenue allocated to the Highway Fund under G.S. 105-449.125 for a month and the amount that would have been allocated to it if the variable wholesale component were not capped at twelve and four-tenths cents (12.4¢) a gallon. The total amount transferred to the Highway Fund under this subsection during fiscal year 2006-2007 may not exceed seventeen million six hundred thousand dollars ($17,600,000). The amount to be transferred from the General Fund to the Highway Trust Fund is the difference between the amount of motor fuel excise tax revenue allocated to the Highway Trust Fund under G.S. 105-449.125 for a month and the amount that would have been allocated to it if the variable wholesale component were not capped at twelve and four-tenths cents (12.4¢) a gallon. The total amount transferred to the Highway Trust Fund under this subsection during fiscal year 2006-2007 may not exceed five million seven hundred thousand dollars ($5,700,000).
PART iII. current operations and expansion/highway fund
CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
SECTION 3.1. Appropriations from the Highway Fund of the State for maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the fiscal year ending June 30, 2007, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Fund Appropriations for the 2006‑2007 fiscal year.
Current Operations – Highway Fund 2006‑2007
Department of Transportation
Administration $ (2,500,000)
Division of Highways
Administration 0
Construction 29,439,500
Maintenance 196,018,256
Planning and Research 0
OSHA Program 0
Ferry Operations 1,000,000
State Aid
Municipalities 1,439,500
Public Transportation (14,000,000)
Railroads 3,198,750
Governor's Highway Safety 0
Division of Motor Vehicles 1,886,701
Other State Agencies 13,069,364
Reserves and Transfers 25,279,000
TOTAL $254,831,071
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. The Highway Fund availability used in developing the 2005‑2007 biennial budget is shown below:
Highway Fund Availability Statement 2006‑2007
Beginning Credit Balance 0
Estimated Revenue 1,767,140,000
Estimated Reversions 26,600,000
Total Highway Fund Availability $ 1,793,740,000
PART iv. highway trust fund appropriations
HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 4.1. Appropriations from the Highway Trust Fund of the State for maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the fiscal year ending June 30, 2007, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Trust Fund Appropriations for the 2006‑2007 fiscal year.
Current Operations – Highway Trust Fund 2006‑2007
Intrastate System 97,860,379
Urban Loops 39,570,662
Aid to Municipalities 10,267,836
Secondary Roads 8,987,310
Program Administration 3,180,220
Transfer to General Fund (195,176,407)
Grand Total Current Operations
and Expansion ($35,310,000)
PART V. BLOCK GRANTS
DHHS Block Grants
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2007, according to the following schedule:
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Work First Family Assistance (Cash Assistance) $114,625,680
02. Work First County Block Grants 94,653,315
03. County Demonstration Grants 19,598,322
04. Child Protective Services – Child Welfare
Workers for Local DSS 12,452,391
05. Work First – Boys and Girls Clubs 1,500,000
06. Work First – After‑School Services for
At‑Risk Children 2,249,642
07. Work First – After‑School Programs for
At‑Risk Youth in Middle Schools 500,000
08. Adoption Services – Special Children's
Adoption Fund 3,000,000
09. Family Violence Prevention 2,200,000
10. Foster Care 2,000,000
Division of Child Development
11. Subsidized Child Care Program 36,563,266
DHHS Administration
12. Division of Social Services 586,931
13. Office of the Secretary 65,836
14. Office of the Secretary/DIRM – TANF
Automation Projects 592,500
15. Office of the Secretary/DIRM – NC FAST
Implementation 1,800,000
Transfers to Other Block Grants
Division of Child Development
16. Transfer to the Child Care and
Development Fund 81,292,880
Division of Social Services
17. Transfer to Social Services Block Grant for
Department of Juvenile Justice and Delinquency
Prevention – Support Our Students 2,749,642
18. Transfer to Social Services Block Grant for Child
Protective Services – Child Welfare Training in
Counties 2,550,000
19. Transfer to Social Services Block Grant for
Maternity Homes 838,000
20. Transfer to Social Services Block Grant for Teen
Pregnancy Prevention Initiatives 2,500,000
21. Transfer to Social Services Block Grant for County
Departments of Social Services for Children's Services 4,500,000
22. Transfer to Social Services Block Grant for
Foster Care Services 1,181,907
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $388,000,312
SOCIAL SERVICES BLOCK GRANT
Local Program Expenditures
Divisions of Social Services and Aging & Adult
01. County Departments of Social Services $ 28,868,189
(Transfer from TANF – $4,500,000)
02. State In‑Home Services Fund 2,101,113
03. State Adult Day Care Fund 2,155,301
04. Child Protective Services/CPS Investigative
Services‑Child Medical Evaluation Program 238,321
05. Foster Care Services 1,706,063
(Transfer from TANF – $1,181,907)
06. Child Protective Services‑Child Welfare Training
for Counties 2,550,000
(Transfer from TANF)
07. Maternity Homes 838,000
(Transfer from TANF)
08. Local DSS Services for Hurricane Victims 509,272
Division of Aging and Adult Services
09. Home and Community Care Block Grant (HCCBG) 1,834,077
Division of Mental Health, Developmental Disabilities, and Substance
Abuse Services
10. Mental Health Services Program 422,003
11. Developmental Disabilities Services Program 5,000,000
12. Mental Health Services‑Adult/Mental Health Services‑
Child/Developmental Disabilities Program/
Substance Abuse Services‑Adult 3,234,601
Division of Child Development
13. Subsidized Child Care Program 3,150,000
Division of Vocational Rehabilitation
14. Vocational Rehabilitation Services – Easter Seal
Society/UCP 188,263
Office of the Secretary – Office of Economic Opportunity
15. Elderly Supplemental Grant Program 41,302
Division of Public Health
16. Teen Pregnancy Prevention Initiatives 2,500,000
(Transfer from TANF)
DHHS Program Expenditures
Division of Aging and Adult Services
17. UNC‑CARES Training Contract 247,920
Division of Services for the Blind
18. Independent Living Program 3,314,114
Division of Facility Services
19. Adult Care Licensure Program 411,897
20. Mental Health Licensure and Certification Program 205,668
DHHS Administration
21. Division of Aging and Adult Services 630,636
22. Division of Social Services 869,058
23. Office of the Secretary/Controller's Office 123,059
24. Office of the Secretary/DIRM 82,009
25. Division of Child Development 15,000
26. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 18,098
27. Division of Facility Services 62,986
28. Office of the Secretary‑NC Inter‑Agency Council
For Coordinating Homeless Programs 250,000
29. Office of the Secretary‑Housing Coalition 100,000
Transfers to Other State Agencies
Department of Administration
30. NC Commission of Indian Affairs In‑Home
Services for the Elderly 203,198
Department of Juvenile Justice and Delinquency Prevention
31. Support Our Students 2,749,642
(Transfer from TANF)
Transfers to Other Block Grants
Division of Public Health
32. Transfer to Preventive Health Services Block Grant for
HIV/STD Prevention and Community Planning 145,819
TOTAL SOCIAL SERVICES BLOCK GRANT $ 64,765,609
LOW‑INCOME ENERGY BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Low Income Energy Assistance Program (LIHEAP) $ 28,684,494
02. Crisis Intervention Program (CIP) 20,831,114
Office of the Secretary – Office of Economic Opportunity
03. Weatherization Program 9,431,545
04. Heating Air Repair & Replacement Program (HARRP) 4,399,042
Local Administration
Division of Social Services
05. County DSS Administration 2,057,992
Office of the Secretary – Office of Economic Opportunity
06. Local Residential Energy Efficiency Service
Providers – Weatherization 257,185
07. Local Residential Energy Efficiency Service
Providers – HARRP 119,955
DHHS Administration
08. Division of Social Services 319,774
09. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 7,146
10. Office of the Secretary/DIRM 245,395
11. Office of the Secretary/Controller's Office 11,211
12. Office of the Secretary/Office of Economic
Opportunity – Weatherization 257,185
13. Office of the Secretary/Office of Economic
Opportunity – HARRP 119,955
Transfers to Other State Agencies
14. Department of Administration –
N.C. State Commission of Indian Affairs 58,455
TOTAL LOW‑INCOME ENERGY BLOCK GRANT $ 66,800,448
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
Local Program Expenditures
Division of Child Development
01. Subsidized Child Care Services $165,102,685
02. Subsidized Child Care Services
(TANF to CCDF) 81,292,880
DHHS Program Expenditures
Division of Child Development
03. Quality and Availability Initiatives 34,951,707
Local Administrations
Division of Child Development
04. Administrative Expenses (Non‑Direct Subsidy
Services Support) 1,849,000
DHHS Administration
05. DCD Administrative Expenses 6,028,354
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $289,224,626
MENTAL HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. Mental Health Services – Adult $ 7,184,481
02. Mental Health Services – Child 3,921,991
03. Comprehensive Treatment Service
Program 1,500,000
Local Administration
04. Division of Mental Health 100,000
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 12,706,472
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
Local Program Expenditures
01. Substance Abuse Services – Adult $ 20,537,390
02. Substance Abuse Treatment Alternative for
Women 8,069,524
03. Substance Abuse – HIV and IV Drug 4,816,378
04. Substance Abuse Prevention – Child 5,835,701
05. Substance Abuse Services – Child 4,940,500
06. Substance Abuse Strengthening Families –
Prevention 851,156
Division of Public Health
07. Risk Reduction Projects 383,980
08. Aid‑to‑Counties 209,576
09. Maternal Health 37,779
DHHS Administration
10. Division of Mental Health 500,000
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 46,181,984
MATERNAL AND CHILD HEALTH BLOCK GRANT
Local Program Expenditures
Division of Public Health
01. Healthy Mothers/Healthy Children 9,359,236
02. Children's Health Services 4,114,216
03. Healthy Beginnings 404,559
04. Maternal Health 397,761
05. Teen Pregnancy Prevention Initiatives 85,710
DHHS Program Expenditures
Division of Public Health
06. Children's Health Services 3,149,826
07. Maternal Health 185,488
08. State Center for Health Statistics 29,432
09. Local Technical Assistance & Training 47,424
10. Injury and Violence Prevention 149,438
11. Office of Minority Health 98,236
12. Special Supplemental Nutrition Program
for Women, Infants, and Children (WIC) 22,856
13. Immunization Program – Vaccine Distribution 414,175
DHHS Administration
14. Division of Public Health Administration 550,681
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 19,009,038
PREVENTIVE HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. NC Statewide Health Promotion $1,755,653
02. Services to Rape Victims 197,112
03. HIV/STD Prevention and Community Planning
(Transfer from Social Services Block Grant) 145,819
DHHS Program Expenditures
04. NC Statewide Health Promotion 431,444
05. Oral Health 114,251
06. Osteoporosis Program 67,593
DHHS Administration
07. Division of Public Health 109,211
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $2,821,083
COMMUNITY SERVICES BLOCK GRANT
Local Program Expenditures
Office of Economic Opportunity – Community Services Block Grant
01. Community Action Agencies $ 15,071,666
02. Limited Purpose Agencies 823,261
DHHS Administration
03. Office of Economic Opportunity 823,261
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 16,718,188
GENERAL PROVISIONS
SECTION 5.1.(b) Information to Be Included in Block Grant Plans. – The Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department, and each plan shall include the following:
(1) A delineation of the proposed allocations by program or activity, including State and federal match requirements.
(2) A delineation of the proposed State and local administrative expenditures.
(3) An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.
(4) A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.
(5) A projection of current year expenditures by program or activity.
(6) A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.
SECTION 5.1.(c) Changes in Federal Fund Availability. – If the Congress of the United States increases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall allocate the increase proportionally across the program and activity appropriations identified for that Block Grant in this section. In allocating an increase in federal fund availability, the Department shall not propose funding for new programs or activities not appropriated in this section or increase State administrative expenditures.
If the Congress of the United States decreases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall reduce State administration by at least the percentage of the reduction in federal funds. After determining the State administration, the remaining reductions shall be allocated proportionately across the program and activity appropriations identified for that Block Grant in this section. In allocating a decrease in federal fund availability, the Department shall not eliminate the funding for a program or activity appropriated in this section unless it is related to the State administration.
Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(d) All changes to the budgeted allocations to the Block Grants administered by the Department of Health and Human Services that are not specifically addressed in this section shall be approved by the Office of State Budget and Management, and a report shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to implementing the changes. All changes to the budgeted allocations to the Block Grant shall be reported immediately to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division. This subsection does not apply to block grant changes caused by legislative salary increases and benefit adjustments.
SECTION 5.1.(e) The Department of Health and Human Services shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division on positions funded from federal Block Grants. The report shall include the following for each Block Grant:
(1) All State positions currently funded through the Block Grant, including permanent, temporary, and time‑limited positions.
(2) Budgeted salary and fringe benefits for each position.
(3) Identify the percentage of Block Grant funds used to fund each position.
The report shall be submitted no later than December 1, 2006.
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF)
SECTION 5.1.(f) The sum of five hundred eighty‑six thousand nine hundred thirty‑one dollars ($586,931) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 5.1.(g) The sum of two million dollars ($2,000,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to provide domestic violence services to Work First recipients. These funds shall be used to provide domestic violence counseling, support, and other direct services to clients. These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts. The Division of Social Services may use up to seventy‑five thousand dollars ($75,000) in TANF funds to support one administrative position within the Division of Social Services to implement this subsection.
Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2006. The Division of Social Services, in consultation with the Council for Women, shall review the county plans and shall provide consultation and technical assistance to the departments of social services and local domestic violence shelter programs, if needed.
The Division of Social Services shall allocate these funds to county departments of social services according to the following formula: (i) each county shall receive a base allocation of five thousand dollars ($5,000); and (ii) each county shall receive an allocation of the remaining funds based on the county's proportion of the statewide total of the Work First caseload as of July 1, 2006, and the county's proportion of the statewide total of the individuals receiving domestic violence services from programs funded by the Council for Women as of July 1, 2006. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
SECTION 5.1.(h) The sum of two million two hundred forty‑nine thousand six hundred forty‑two dollars ($2,249,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to expand after‑school programs and services for at‑risk children. The Department shall develop and implement a grant program to award grants to community‑based programs that demonstrate the ability to reach children at risk of teen pregnancy, school dropout, and gang participation. The Department shall award grants to community‑based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to fund one position within the Division of Social Services to coordinate at‑risk after‑school programs and shall not be used for other State administration.
SECTION 5.1.(i) The sum of twelve million four hundred fifty‑two thousand three hundred ninety‑one dollars ($12,452,391) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2006‑2007 fiscal year for child welfare improvements, shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and postadoption services for eligible families.
SECTION 5.1.(j) The sum of three million dollars ($3,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2006‑2007 fiscal year shall be used in accordance with Section 10.48 of this act. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A‑50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.
SECTION 5.1.(k) The sum of one million eight hundred thousand dollars ($1,800,000) in this section appropriated to the Department of Health and Human Services in the TANF Block Grant for the 2006‑2007 fiscal year shall be used to implement N.C. FAST (North Carolina Families Accessing Services through Technology). The N.C. FAST Program involves the entire automation initiative through which families access services and local departments of social services deliver benefits, supervised by the Department of Health and Human Services, Divisions of Social Services, Aging and Adult Services, Medical Assistance, and Child Development. The statewide automated initiative shall be implemented in compliance with federal regulations in order to ensure federal financial participation in the project. The Department of Health and Human Services shall report on its compliance with this subsection to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division no later than January 1, 2007.
SECTION 5.1.(l) The sum of five hundred thousand dollars ($500,000) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2006‑2007 fiscal year shall be used to expand after‑school programs for at‑risk children attending middle school. The Department shall develop and implement a grant program to award funds to community‑based programs demonstrating the capacity to reach children at risk of teen pregnancy, school dropout, and gang participation. These funds shall not be used for training or administration at the State level. All funds shall be distributed to community‑based programs, focusing on those communities where similar programs do not exist in middle schools.
SECTION 5.1.(m) In implementing the TANF Block Grant, the Department of Health and Human Services shall review policies, programs, and initiatives to ensure that they support men in their role as fathers and strengthen fathers' involvement in their children's lives. The Department shall encourage county departments of social services to ensure their Work First programs emphasize responsible fatherhood and increased participation by noncustodial fathers.
SECTION 5.1.(n) The sum of nineteen million five hundred ninety‑eight thousand three hundred twenty‑two dollars ($19,598,322) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2006‑2007 fiscal year for county demonstration grants shall be used for Work First demonstration projects implemented by county departments of social services. The county demonstration grants may be awarded for up to three years with all projects ending no later than the end of fiscal year 2008‑2009. The purpose of the county demonstration grants is to identify best practices that can be used by counties to improve the work participation rates for TANF recipients. The Division of Social Services is authorized to establish two time‑limited positions to manage the grant award process and monitor the demonstration projects through fiscal year 2008‑2009.
Funding provided under the county demonstration grants shall not be used to supplant local funds and counties shall be required to maintain the current level of effort and funding for the Work First program.
SOCIAL SERVICES BLOCK GRANT
SECTION 5.1.(o) Social Services Block Grant funds appropriated to the North Carolina Inter‑Agency Council for Coordinating Homeless Programs and the North Carolina Housing Coalition are exempt from the provisions of 10A NCAC 71R.0201(3).
SECTION 5.1.(p) The sum of two million seven hundred forty‑nine thousand six hundred forty‑two dollars ($2,749,642) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2006‑2007 fiscal year shall be used to support the existing Support Our Students Program, including gang prevention, and to expand the Program statewide, focusing on low‑income communities in unserved areas. These funds shall not be used for administration of the Program.
SECTION 5.1.(q) The sum of two million five hundred fifty thousand dollars ($2,550,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to support various child welfare training projects as follows:
(1) Provide a regional training center in southeastern North Carolina.
(2) Support the Masters Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.
(3) Provide training for residential child care facilities.
(4) Provide for various other child welfare training initiatives.
SECTION 5.1.(r) The sum of eight hundred thirty‑eight thousand dollars ($838,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services for the 2006‑2007 fiscal year shall be used to purchase services at maternity homes throughout the State.
SECTION 5.1.(s) The sum of one million seven hundred six thousand sixty‑three dollars ($1,706,063) appropriated in this section in the Social Services Block Grant for child caring agencies for the 2006‑2007 fiscal year shall be allocated to the State Private Child Caring Agencies Fund.
SECTION 5.1.(t) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section to the Department of Health and Human Services in the Social Services Block Grant for Boys and Girls Clubs for the 2006‑2007 fiscal year shall be used to make grants for approved programs. The Department of Health and Human Services, in accordance with federal regulations for the use of Social Services Block Grant funds, shall administer a grant program to award funds to the Boys and Girls Clubs across the State in order to implement programs that improve the motivation, performance, and self‑esteem of youths and to implement other initiatives that would be expected to reduce gang participation, school dropout, and teen pregnancy rates. The Department shall encourage and facilitate collaboration between the Boys and Girls Clubs and Support Our Students, Communities in Schools, and similar programs to submit joint applications for the funds if appropriate.
SECTION 5.1.(u) The Department of Health and Human Services is authorized, subject to the approval of the Office of State Budget and Management, to transfer Social Services Block Grant funding allocated for departmental administration between divisions that have received administrative allocations from the Social Services Block Grant.
LOW‑INCOME HOME ENERGY ASSISTANCE PROGRAM
SECTION 5.1.(v) Additional emergency contingency funds received may be allocated for Energy Assistance Payments or Crisis Intervention Payments without prior consultation with the Joint Legislative Commission on Governmental Operations. Additional funds received shall be reported to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division upon notification of the award. The Department of Health and Human Services shall not allocate funds for any activities, including increasing administration, other than assistance payments, without prior consultation with the Joint Legislative Commission on Governmental Operations.
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
SECTION 5.1.(w) The sum of no more than four hundred thousand dollars ($400,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant for the 2006‑2007 fiscal year may be used for the operations of the Medical Child Care Pilot.
SECTION 5.1.(x) Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 5.1.(y) If funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to child care subsidies, unless otherwise prohibited by federal requirements of the grant, in order to use the federal funds fully.
MENTAL HEALTH BLOCK GRANT
SECTION 5.1.(z) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the Mental Health Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2006‑2007 fiscal year, and the sum of four hundred twenty‑two thousand three dollars ($422,003) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2006‑2007 fiscal year shall be used to continue a Comprehensive Treatment Services Program for Children in accordance with Section 10.25 of S.L. 2005‑276.
SECTION 5.1.(aa) The Department of Health and Human Services shall contract with the University of North Carolina at Chapel Hill for the purpose of providing psychology student stipends in the amount of fifty thousand dollars ($50,000) for the 2006‑2007 fiscal year. Twenty‑five thousand dollars ($25,000) of this contract shall be paid from the Mental Health Block Grant.
MATERNAL AND CHILD HEALTH BLOCK GRANT
SECTION 5.1.(bb) If federal funds are received under the Maternal and Child Health Block Grant for abstinence education, pursuant to section 912 of Public Law 104‑193 (42 U.S.C. § 710), for the 2006‑2007 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an Abstinence Until Marriage Education Program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C‑81(e1)(4). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.
SECTION 5.1.(cc) The Department of Health and Human Services shall ensure that there will be follow‑up testing in the Newborn Screening Program.
NER BLOCK GRANTS
SECTION 5.2.(a) Appropriations from federal block grant funds are made for fiscal year ending June 30, 2007, according to the following schedule:
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $ 1,000,000
02. Urgent Needs and Contingency 1,000,000
03. Scattered Site Housing 13,200,000
04. Economic Development 8,710,000
05. Community Revitalization 13,500,000
06. State Technical Assistance 450,000
07. Housing Development 2,000,000
08. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT – 2007 Program Year $ 45,000,000
SECTION 5.2.(b) Decreases in Federal Fund Availability. – If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
SECTION 5.2.(c) Increases in Federal Fund Availability for Community Development Block Grant. – Any block grant funds appropriated by the Congress of the United States in addition to the funds specified in this section shall be expended as follows: each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
SECTION 5.2.(d) Limitations on Community Development Block Grant Funds. – Of the funds appropriated in this section for the Community Development Block Grant, the following shall be allocated in each category for each program year: up to one million dollars ($1,000,000) may be used for State Administration; not less than one million dollars ($1,000,000) may be used for Urgent Needs and Contingency; up to thirteen million two hundred thousand dollars ($13,200,000) may be used for Scattered Site Housing; up to eight million seven hundred ten thousand dollars ($8,710,000) may be used for Economic Development, including Urban Redevelopment Grants and Small Business or Entrepreneurial Assistance; not less than thirteen million five hundred thousand dollars ($13,500,000) shall be used for Community Revitalization; up to four hundred fifty thousand dollars ($450,000) may be used for State Technical Assistance; up to two million dollars ($2,000,000) may be used for Housing Development; up to five million one hundred forty thousand dollars ($5,140,000) may be used for Infrastructure. If federal block grant funds are reduced or increased by the Congress of the United States after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (b) or (c) of this section, as applicable.
SECTION 5.2.(e) Increase Capacity for Nonprofit Organizations. – Assistance to nonprofit organizations to increase their capacity to carry out CDBG‑eligible activities in partnership with units of local government is an eligible activity under any program category in accordance with federal regulations. Capacity building grants may be made from funds available within program categories, program income, or unobligated funds.
SECTION 5.2.(f) Department of Commerce Demonstration Grants in Partnership with Rural Economic Development Center, Inc. – The Department of Commerce, in partnership with the Rural Economic Development Center, Inc., shall award up to two million two hundred fifty thousand dollars ($2,250,000) in demonstration grants to local governments in very distressed rural areas of the State. These grants shall be used to address critical infrastructure and entrepreneurial needs and to provide small business assistance.
SECTION 5.2.(g) The Department of Commerce shall consult with the Joint Legislative Commission on Governmental Operations prior to reallocating Community Development Block Grant Funds. Notwithstanding the provisions of this subsection, whenever the Director of the Budget finds that:
(1) A reallocation is required because of an emergency that poses an imminent threat to public health or public safety, the Director of the Budget may authorize the reallocation without consulting the Commission. The Department of Commerce shall report to the Commission on the reallocation no later than 30 days after it was authorized and shall identify in the report the emergency, the type of action taken, and how it was related to the emergency.
(2) The State will lose federal block grant funds or receive less federal block grant funds in the next fiscal year unless a reallocation is made, the Department of Commerce shall provide a written report to the Commission on the proposed reallocation and shall identify the reason that failure to take action will result in the loss of federal funds. If the Commission does not hear the issue within 30 days of receipt of the report, the Department may take the action without consulting the Commission.
PART VI. general provisions
Contingency and Emergency Fund allocations
SECTION 6.1.(a) Section 6.2 of S.L. 2005‑276 is repealed.
SECTION 6.1.(b) Funds in the amount of five million dollars ($5,000,000) for the 2006‑2007 fiscal year are appropriated to the Contingency and Emergency Fund. Except as provided in subsection (c) of this section, these funds shall be expended only as:
(1) Required by a court, Industrial Commission, or administrative hearing officer's order;
(2) Required to call out the national guard; or
(3) Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado, if funds for this purpose are not available in the Reserve for Disaster Expenses as authorized in G.S. 166A.
SECTION 6.1.(c) Up to five hundred thousand dollars ($500,000) may be spent for purposes other than those set out in subsection (b) of this section. Notwithstanding any other provision of law authorizing expenditures from the Contingency and Emergency Fund, no more than five hundred thousand dollars ($500,000) of these funds shall be expended for purposes other than those set out in subsection (b) of this section.
authorization to establish receipt‑supported positions
SECTION 6.2. Notwithstanding G.S. 143‑34.1(a1), a department, institution, or other agency of State government may establish receipt‑supported positions authorized in this act upon approval by the Director of the Budget. The Director, if necessary, may establish a receipt‑supported position pursuant to this section at an annual salary amount different from the salary amount set out in this act if (i) funds are available from the proposed funding source and (ii) the alternative salary amount remains within the established salary range grade identified for the job classification of the affected receipt‑supported position established in this act. The Director shall not change the job classifications or increase the number of receipt‑supported positions specified in this act without prior consultation with the Joint Legislative Commission on Governmental Operations.
Consultation Not Required prior to establishing or increasing fees pursuant to the executive budget act
SECTION 6.3. Notwithstanding G.S. 12‑3.1, an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee as authorized or anticipated in the Current Operations and Capital Improvements Appropriations Act of 2006 or the Senate Appropriations Committee Report on the Continuation, Expansion and Capital Budgets, which was distributed in the Senate Appropriations and Base Budget Committee and used to explain this act.
no fee increases which the general assembly has rejected
SECTION 6.4. Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑16.7. No fee increases that the General Assembly has rejected.
Notwithstanding any other provision of law, no fee shall be increased if the General Assembly has rejected an increase of that fee for the current fiscal period. For the purpose of this section, the General Assembly has rejected a fee increase when that fee increase is included in a bill which fails a reading, or if the fee increase is included in the version of a bill that passes one house, but the bill is enacted without the fee increase."
State Emergency Response Account
SECTION 6.5.(a) G.S. 166A‑6.01(b)(2) reads as rewritten:
"(b) Disaster Assistance Programs – Type I Disaster. – In the event that a Type I disaster is proclaimed, the Governor may make State funds available for disaster assistance in the disaster area in the form of individual assistance and public assistance as provided in this subsection.
…
(2) Public assistance. – State disaster assistance in the form of public assistance grants may be made available to eligible entities located within the disaster area on the following terms and conditions:
a. Eligible entities shall meet the following qualifications:
1. The eligible entity suffers a minimum of ten thousand dollars ($10,000) in uninsurable losses;
2. The eligible entity
suffers uninsurable losses in an amount equal to or exceeding one‑half
percent (0.5%) one percent (1%) of the annual operating budget;
3. For a state of disaster proclaimed pursuant to G.S. 166A‑6(a) after the deadline established by the Federal Emergency Management Agency pursuant to the Disaster Mitigation Act of 2002, P.L. 106‑390, the eligible entity shall have a hazard mitigation plan approved pursuant to the Stafford Act; and
4. For a state of disaster proclaimed pursuant to G.S. 166A‑6(a) after August 1, 2002, the eligible entity shall be participating in the National Flood Insurance Program in order to receive public assistance for flooding damage.
b. Eligible entities shall be required to provide non‑State matching funds equal to twenty‑five percent (25%) of the eligible costs of the public assistance grant.
c. An eligible entity that receives a public assistance grant pursuant to this subsection may use the grant for the following purposes only:
1. Debris clearance.
2. Emergency protective measures.
3. Roads and bridges.
4. Crisis counseling.
5. Assistance with public transportation needs."
SECTION 6.5.(b) Article 1 of Chapter 166A of the General Statutes is amended by adding a new section to read:
"§ 166A‑6.02. State Emergency Response Account.
(a) Account Established. – There is established a State Emergency Response Account as a reserve in the General Fund. Any funds appropriated to the Account shall remain available for expenditure as provided by this section, unless directed otherwise by the General Assembly.
(b) Purpose of Funds. – The Governor may spend funds from the Account for the following purposes:
(1) To cover the start‑up costs of State Emergency Response Team operations for an emergency that poses an imminent threat of a Type I, Type II, or Type III disaster as defined by G.S. 166A‑6.
(2) To cover the cost of first responders to a Type I, Type II, or Type III disaster and any related supplies and equipment needed by first responders that are not provided for under subdivision (1) of this subsection.
All other types of disaster assistance authorized by G.S. 166A‑6 shall continue to be financed by the funds made available under G.S. 166A‑6.01.
(c) Reporting Requirement. – The Governor shall report to the Joint Legislative Commission on Governmental Operations and to the Chairs of the Appropriations Committees of the Senate and House of Representatives on any expenditures from the State Emergency Response Account no later than 30 days after making the expenditure. The report shall include a description of the emergency and type of action taken."
SECTION 6.5.(c) G.S. 166A‑4(1) reads as rewritten:
"(1)(1a) Disaster.
– An occurrence or imminent threat of widespread or severe damage, injury, or
loss of life or property resulting from any natural or man‑made
accidental, military or paramilitary cause."
SECTION 6.5.(d) G.S. 166A‑4 is amended by adding a new subdivision to read:
"(1) Account. – The State Emergency Response Account established in G.S. 166A‑6.02."
Information Technology Fund Availability Statement
SECTION 6.6. Section 6.13(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 6.13.(a) The availability used to support appropriations made in this act from the Information Technology Fund established in G.S. 147‑33.72H is as follows:
FY 2005‑2006 FY 2006‑2007
Estimated Unencumbered Balance,
June 30, 2006 $1,120,000
Receipts from Information Technology
Enterprise Fee (G.S. 147‑33.82) $5,000,000 $5,000,000
Transfer from June 30, 2005, Information Technology
Services Internal Service Fund cash balance to
support statewide IT initiatives $5,000,000
Appropriation from General
Fund $24,375,000 $8,025,000
Appropriation from General Fund $24,375,000 $50,112,229
Total Funds Available $34,375,000
$13,025,000.
Total Funds Available $34,375,000 $56,232,229."
Information Technology Appropriations
SECTION 6.7. Section 6.14 of S.L. 2005‑276 reads as rewritten:
"SECTION 6.14. Appropriations are made from the Information Technology Fund established in G.S. 147‑33.72H as follows:
Office of Information Technology Services FY 2005‑2006 FY 2006‑2007
To establish two project management assistant
positions and one enterprise licensing position
and to purchase and maintain asset management
software and enterprise licenses. $1,600,000 $1,400,000
To continue existing activities including project
management assistance, security, asset management,
legal support, and legacy system assessment. $5,100,000 $3,300,000
To provide services previously supported by
cross subsidies in the rate structure, including
State portal maintenance, security services,
enterprise identity management, and office
operations. $6,300,000 $5,800,000
To facilitate consolidation of information
technology services in State agencies. $500,000
To establish two attorneys to assist Information
Technology Services (ITS) with complex
information technology procurements. $298,826
Office of State Controller
To initiate replacement
of the State's personnel
and payroll
systems consistent with the analysis
and findings of
the Statewide Business Infra‑
structure study $20,875,000 $2,525,000
To implement replacement of the State's
human resources and payroll system
with a new system, Building Enterprise
Access for North Carolina's Core
Operations (BEACON)/State Business
Infrastructure Program (SBIP). $20,875,000 $44,313,403
To provide funding to integrate and deploy
the following data warehousing projects as
part of BEACON/SBIP:
(i) Department of Revenue: Guest Worker
Compliance Project.
(ii) Office of StatePersonnel:
Workforce Planning Project.
(iii) Office of the State Auditor:
Business Intelligence Software
and Data Warehousing Project. $1,000,000
Total Appropriation $34,375,000
$13,025,000
Total Appropriation $34,375,000 $56,112,229
Funds appropriated under this section are subject to the reporting requirement set out in G.S. 147‑33.72H."
review of information technology contracts
SECTION 6.8. G.S. 147‑33.103 reads as rewritten:
"§
147‑33.103. Attorney General contract assistance; rule‑making
authority.assistance; use of private counsel.
(a) At the request of the State Chief Information Officer, the Attorney General shall provide legal advice and services necessary to implement this Part.
(b) Repealed by Session Laws 2004‑129, s. 26, effective July 1, 2004.
(c) The State Chief Information Officer shall retain private counsel to provide legal advice and services and to ensure that the State's interests are protected regarding information technology contracts that obligate the State to expend over five million dollars ($5,000,000) over the life of the contract. The requirements of G.S. 114‑2.3 do not apply to this subsection.
The State Chief Information Officer may use funds from the Information Technology Fund, which is established in G.S. 147‑33.72H, for this purpose."
AMEND CIVIL PENALTY AND FORFEITURE FUND AVAILABILITY
SECTION 6.9.(a) Section 6.37(a) of S. L. 2005‑276 reads as rewritten:
"SECTION 6.37.(a) Availability. – The availability used to support appropriations made in this act from the Civil Penalty and Forfeiture Fund is based upon estimated collections of fines and forfeitures from the agencies and in the amounts listed below:
FY 2005‑2006 FY 2006‑2007
Department of Revenue $
80,000,000 $ 85,000,000 63,000,000
Department of Transportation $ 15,000,000 $ 15,000,000
Employment Security Commission $ 3,000,000 $ 3,000,000
Department of Insurance $
3,000,000 $ 3,000,000 1,000,000
University of North Carolina $
5,000,000 $ 5,000,000 3,500,000
Other Agencies $
14,500,000 $ 14,500,000 10,000,000
Total Funds Available $
120,500,000 $ 125,500,000 95,500,000"
SECTION 6.9.(b) Section 6.37(b) of S.L. 2005‑276 reads as rewritten:
"SECTION 6.37.(b) Appropriations. – Appropriations are made from the Civil Penalty and Forfeiture Fund for the fiscal biennium ending June 30, 2007, as follows:
2005‑2006 2006‑2007
School Technology Fund $ 18,000,000 $ 18,000,000
State Public School Fund $
102,500,000 $ 107,500,000 77,500,000
Total Appropriation $
120,500,000 $ 125,500,000 95,500,000"
SECTION 6.9.(c) G.S. 115C‑457.2 reads as rewritten:
"§ 115C‑457.2. Remittance of moneys to the Fund.
The clear proceeds of all civil penalties, civil forfeitures, and civil fines that are collected by a State agency and that the General Assembly is authorized to place in a State fund pursuant to Article IX, Section 7(b) of the Constitution shall be remitted to the Office of State Budget and Management by the officer having custody of the funds within 10 days after the close of the calendar month in which the revenues were received or collected. Notwithstanding any other law, all such funds shall be deposited in the Civil Penalty and Forfeiture Fund. The clear proceeds of these funds include the full amount of all civil penalties, civil forfeitures, and civil fines collected under Page 48 Session Law 2005‑276 SL2005‑0276 authority conferred by the State, diminished only by the actual costs of collection, not to exceed twenty percent (20%) of the amount collected. The collection cost percentage to be used by a State agency shall be established and approved by the Office of State Budget and Management on an annual basis based upon the computation of actual collection costs by each agency for the prior fiscal year."
SECTION 6.9.(d) The State Board of Education may use up to five hundred thousand dollars ($500,000) from the State Public School Fund to support the Senior Project initiative. These funds shall be used for training for LEA staff and teachers to implement this graduation requirement which was approved by the State Board of Education in 2004.
funds for enrollment increases
SECTION 6.10. G.S. 143‑11 is amended by adding a new subsection to read:
"(a1) In developing the budget, the Director shall consider the information on student enrollment increases submitted to the Director by the State Board of Education, the State Board of Community Colleges, and the Board of Governors of The University of North Carolina. The Director shall include in the continuation budget the amount the Director proposes to fund for the enrollment increases for public schools, community colleges, and the university system."
Housing Assistance Funds
SECTION 6.11. Section 5.1(c) of S.L. 2005‑1 reads as rewritten:
"SECTION 5.1.(c) The Department of Crime Control and Public Safety shall modify the Crisis Housing Assistance Fund (CHAF) to provide money to persons who do not qualify for CHAF assistance solely because they failed to apply for federal assistance through FEMA or the Small Business Administration's (SBA) Real Property Disaster loan program. The Department shall review these persons' applications for CHAF assistance using the same criteria employed by the SBA to determine eligibility for an SBA Real Property Disaster loan. The applicants shall be eligible for CHAF assistance if it is determined that they would have failed to qualify for assistance under the SBA Real Property disaster loan criteria and that they otherwise meet the criteria for CHAF."
PART vII. PUBLIC SCHOOLS
SECTION 7.1.(a) Effective for the 2006‑2007 school year, the Director of the Budget shall transfer from the Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools funds necessary to implement the teacher salary schedules set out in subsection (b) of this section and for longevity in accordance with subsection (c) of this section, including funds for the employer's retirement and social security contributions for all teachers whose salaries are supported from the State's General Fund.
These funds shall be allocated to individuals according to rules adopted by the State Board of Education.
SECTION 7.1.(b) The following monthly salary schedules shall apply for the 2006‑2007 fiscal year to certified personnel of the public schools who are classified as teachers. The schedule contains 30 steps with each step corresponding to one year of teaching experience.
2006‑2007 Monthly Salary Schedule
"A" Teachers
Years Of Experience "A" Teachers NBPTS Certification
0 $2,851 N/A
1 $2,893 N/A
2 $2,937 N/A
3 $3,093 $3,464
4 $3,233 $3,621
5 $3,367 $3,771
6 $3,496 $3,916
7 $3,600 $4,032
8 $3,648 $4,086
9 $3,697 $4,141
10 $3,747 $4,197
11 $3,796 $4,252
12 $3,847 $4,309
13 $3,898 $4,366
14 $3,951 $4,425
15 $4,005 $4,486
16 $4,060 $4,547
17 $4,115 $4,609
18 $4,174 $4,675
19 $4,232 $4,740
20 $4,290 $4,805
21 $4,352 $4,874
22 $4,413 $4,943
23 $4,479 $5,016
24 $4,543 $5,088
25 $4,608 $5,161
26 $4,674 $5,235
27 $4,742 $5,311
28 $4,813 $5,391
29+ $4,884 $5,470
2006‑2007 Monthly Salary Schedule
"M" Teachers
Years Of Experience "M" Teachers NBPTS Certification
0 $3,136 N/A
1 $3,182 N/A
2 $3,231 N/A
3 $3,402 $3,810
4 $3,556 $3,983
5 $3,704 $4,148
6 $3,846 $4,308
7 $3,960 $4,435
8 $4,013 $4,495
9 $4,067 $4,555
10 $4,122 $4,617
11 $4,176 $4,677
12 $4,232 $4,740
13 $4,288 $4,803
14 $4,346 $4,868
15 $4,406 $4,935
16 $4,466 $5,002
17 $4,527 $5,070
18 $4,591 $5,142
19 $4,655 $5,214
20 $4,719 $5,285
21 $4,787 $5,361
22 $4,854 $5,436
23 $4,927 $5,518
24 $4,997 $5,597
25 $5,069 $5,677
26 $5,141 $5,758
27 $5,216 $5,842
28 $5,294 $5,929
29+ $5,372 $6,017
SECTION 7.1.(c) Annual longevity payments for teachers shall be at the rate of one and one‑half percent (1.5%) of base salary for 10 to 14 years of State service, two and twenty‑five hundredths percent (2.25%) of base salary for 15 to 19 years of State service, three and twenty‑five hundredths percent (3.25%) of base salary for 20 to 24 years of State service, and four and one‑half percent (4.5%) of base salary for 25 or more years of State service. The longevity payment shall be paid in a lump sum once a year.
SECTION 7.1.(d) Certified public schoolteachers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers. Certified public schoolteachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers.
SECTION 7.1.(e) The first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "M" teachers. Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience. Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.
Certified psychologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified psychologists. Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.
SECTION 7.1.(f) Speech pathologists who are certified as speech pathologists at the masters degree level and audiologists who are certified as audiologists at the masters degree level and who are employed in the public schools as speech and language specialists and audiologists shall be paid on the school psychologist salary schedule.
Speech pathologists and audiologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for speech pathologists and audiologists. Speech pathologists and audiologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for speech pathologists and audiologists.
SECTION 7.1.(g) Certified school nurses who are employed in the public schools as nurses shall be paid on the "M" salary schedule.
SECTION 7.1.(h) As used in this section, the term "teacher" shall also include instructional support personnel.
SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 7.2.(a) Effective for the 2006‑2007 school year, the Director of the Budget shall transfer from the Reserve for Compensation Increases funds necessary to implement the salary schedules for school‑based administrators as provided in this section. These funds shall be used for State‑paid employees only.
SECTION 7.2.(b) The base salary schedule for school‑based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2006‑2007 fiscal year, commencing July 1, 2006, is as follows:
2006‑2007
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of Assistant Prin I Prin II Prin III Prin IV
Exp Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,592
5 $3,741
6 $3,884
7 $4,000
8 $4,053 $4,053
9 $4,108 $4,108
10 $4,163 $4,163 $4,218
11 $4,218 $4,218 $4,274
12 $4,274 $4,274 $4,331 $4,389
13 $4,331 $4,331 $4,389 $4,450 $4,511
14 $4,389 $4,389 $4,450 $4,511 $4,572
15 $4,450 $4,450 $4,511 $4,572 $4,637
16 $4,511 $4,511 $4,572 $4,637 $4,702
17 $4,572 $4,572 $4,637 $4,702 $4,766
18 $4,637 $4,637 $4,702 $4,766 $4,835
19 $4,702 $4,702 $4,766 $4,835 $4,903
20 $4,766 $4,766 $4,835 $4,903 $4,976
21 $4,835 $4,835 $4,903 $4,976 $5,047
22 $4,903 $4,903 $4,976 $5,047 $5,120
23 $4,976 $4,976 $5,047 $5,120 $5,192
24 $5,047 $5,047 $5,120 $5,192 $5,268
25 $5,120 $5,120 $5,192 $5,268 $5,347
26 $5,192 $5,192 $5,268 $5,347 $5,426
27 $5,268 $5,268 $5,347 $5,426 $5,535
28 $5,347 $5,347 $5,426 $5,535 $5,646
29 $5,426 $5,426 $5,535 $5,646 $5,759
30 $5,535 $5,535 $5,646 $5,759 $5,874
31 $5,646 $5,646 $5,759 $5,874 $5,991
32 $5,759 $5,874 $5,991 $6,111
33 $5,991 $6,111 $6,233
34 $6,111 $6,233 $6,358
35 $6,358 $6,485
36 $6,485 $6,615
37 $6,747
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of PrinV PrinVI PrinVII PrinVIII
Exp (44‑54) (55‑65) (66‑100) (101+)
0‑14 $4,637
15 $4,702
16 $4,766 $4,835
17 $4,835 $4,903 $5,047
18 $4,903 $4,976 $5,120 $5,192
19 $4,976 $5,047 $5,192 $5,268
20 $5,047 $5,120 $5,268 $5,347
21 $5,120 $5,192 $5,347 $5,426
22 $5,192 $5,268 $5,426 $5,535
23 $5,268 $5,347 $5,535 $5,646
24 $5,347 $5,426 $5,646 $5,759
25 $5,426 $5,535 $5,759 $5,874
26 $5,535 $5,646 $5,874 $5,991
27 $5,646 $5,759 $5,991 $6,111
28 $5,759 $5,874 $6,111 $6,233
29 $5,874 $5,991 $6,233 $6,358
30 $5,991 $6,111 $6,358 $6,485
31 $6,111 $6,233 $6,485 $6,615
32 $6,233 $6,358 $6,615 $6,747
33 $6,358 $6,485 $6,747 $6,882
34 $6,485 $6,615 $6,882 $7,020
35 $6,615 $6,747 $7,020 $7,160
36 $6,747 $6,882 $7,160 $7,303
37 $6,882 $7,020 $7,303 $7,449
38 $7,020 $7,160 $7,449 $7,598
39 $7,303 $7,598 $7,750
40 $7,449 $7,750 $7,905
41 $7,905 $8,063
SECTION 7.2.(c) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, shall be determined in accordance with the following schedule:
Number of Teachers
Classification Supervised
Assistant Principal
Principal I Fewer than 11 Teachers
Principal II 11‑21 Teachers
Principal III 22‑32 Teachers
Principal IV 33‑43 Teachers
Principal V 44‑54 Teachers
Principal VI 55‑65 Teachers
Principal VII 66‑100 Teachers
Principal VIII More than 100 Teachers
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non‑State funds or the principal or teacher assistants.
The beginning classification for principals in alternative schools and in cooperative innovative high school programs shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 7.2.(d) A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal. A principal or assistant principal shall also continue to receive any additional State‑funded percentage increases earned for the 1997‑1998, 1998‑1999, and 1999‑2000 school years for improvement in student performance or maintaining a safe and orderly school.
SECTION 7.2.(e) Principals and assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
SECTION 7.2.(f) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
SECTION 7.2.(g) If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 7.2.(h) Participants in an approved full‑time masters in school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the masters program. For the 2006‑2007 fiscal year and subsequent fiscal years, the stipend shall not exceed the difference between the beginning salary of an assistant principal and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full‑time masters in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.
SECTION 7.2.(i) During the 2006‑2007 fiscal year, the placement on the salary schedule of an administrator with a one‑year provisional assistant principal's certificate shall be at the entry‑level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.
School Administrator I $3,079 $6,012
School Administrator II $3,268 $6,378
School Administrator III $3,468 $6,765
School Administrator IV $3,608 $7,035
School Administrator V $3,753 $7,319
School Administrator VI $3,982 $7,762
School Administrator VII $4,142 $8,075
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee hired on or after July 1, 2006.
SECTION 7.3.(b) The monthly salary ranges that follow apply to public school superintendents for the 2006‑2007 fiscal year, beginning July 1, 2006.
Superintendent I $4,396 $8,566
Superintendent II $4,667 $9,084
Superintendent III $4,952 $9,637
Superintendent IV $5,225 $10,221
Superintendent V $5,578 $10,844
The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.
SECTION 7.3.(c) Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the State Personnel Act.
SECTION 7.3.(d) Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided pursuant to this section. Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for under this section.
SECTION 7.3.(e) The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.
SECTION 7.3.(f) The annual salary increase for all permanent full‑time personnel paid from the Central Office Allotment shall be five percent (5%), commencing July 1, 2006. The State Board of Education shall allocate these funds to local school administrative units. The local boards of education shall establish guidelines for providing salary increases to these personnel.
NONCERTIFIED PERSONNEL SALARY AND FAIR MINIMUM PAY
SECTION 7.4.(a) The annual salary increase for permanent, full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be five percent (5%), commencing July 1, 2006.
SECTION 7.4.(b) Local boards of education shall increase the rates of pay for such employees who were employed for all or part of fiscal year 2005‑2006 and who continue their employment for fiscal year 2006‑2007 by providing an annual salary increase for employees of five percent (5%). For part‑time employees, the pay increase shall be pro rata based on the number of hours worked.
SECTION 7.4.(d) Effective July 1, 2006, permanent full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be paid a minimum salary of at least twenty thousand one hundred twelve dollars ($20,112) per year. Permanent, full‑time employees working on a schedule requiring less than 12 months' service per year and permanent part‑time employees, whose salaries are supported from the State's General Fund, shall be paid the minimum salary pro rata. The fair minimum wage salary adjustment provided by this section shall be calculated and awarded after any across‑the‑board salary increases authorized by this act.
BONUS FOR CERTIFIED PERSONNEL AT THE TOP OF THEIR SALARY SCHEDULES
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
SECTION 7.6.(a) The State Board of Education shall use funds appropriated in this act for State Aid to Local School Administrative Units to provide incentive funding for schools that met or exceeded the projected levels of improvement in student performance during the 2005‑2006 school year, in accordance with the ABCs of Public Education Program. In accordance with State Board of Education policy:
(1) Incentive awards in schools that achieve higher than expected improvements may be up to:
a. One thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be up to:
a. Seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Three hundred seventy‑five dollars ($375.00) for each teacher assistant.
SECTION 7.6.(b) The State Board of Education may use funds appropriated to the State Public School Fund to provide assistance to low‑performing schools.
SECTION 7.7. The State Board of Education shall allocate funds for children with disabilities on the basis of two thousand nine hundred sixty‑six dollars and sixty‑five cents ($2,966.65) per child for a maximum of 172,040 children for the 2006‑2007 school year. Each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities, or (ii) twelve and five‑tenths percent (12.5%) of the 2006‑2007 allocated average daily membership in the local school administrative unit.
The dollar amounts allocated under this section for children with disabilities shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities.
FUNDS FOR ACADEMICALLY GIFTED CHILDREN
SECTION 7.8. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of nine hundred sixty‑one dollars and sixty cents ($961.60) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2006‑2007 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit. The State Board shall allocate funds for no more than 57,419 children for the 2006‑2007 school year.
The dollar amounts allocated under this section for academically or intellectually gifted children shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve academically or intellectually gifted children.
DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING
SECTION 7.10. Section 7.8 of S.L. 2005‑276 is amended by adding a new subsection to read:
"Section 7.8.(c) Beginning in the 2006‑2007 fiscal year, funds appropriated for disadvantaged student supplemental funding (DSSF) shall be allotted based upon a teacher‑to‑student ratio for the eligible DSSF population using the following formula:
(1) Local education agencies (LEAs) in counties with wealth greater than ninety percent (90%) of the statewide average shall receive one teaching position per 20.5 DSSF population;
(2) LEAs in counties with wealth not less than eighty percent (80%) and not greater than ninety percent (90%) of the statewide average shall receive one teaching position per 20 DSSF population;
(3) LEAs in counties with wealth less than eighty percent (80%) of the statewide average shall receive one teaching position per 19.5 DSSF population;
(4) LEAs receiving DSSF funds in 2005‑2006 shall receive one teaching position per 16 DSSF population. These LEAs shall receive no less than the DSSF amount allotted in 2005‑2006.
For the purpose of this subsection, wealth shall be calculated under the low wealth supplemental formula."
SECTION 7.11. Section 7.32 of S.L. 2005‑276 is amended by adding the following new subsections:
"SECTION 7.32.(e) Enrollment fees and tuition for The University of North Carolina courses in which Learn and Earn students are enrolled are allowable uses of these funds. Tuition costs may include laboratory fees assessed to all students enrolled in the course or a similar course.
SECTION 7.32.(f) Textbooks required for college courses in which Learn and Earn students are enrolled may be purchased with these funds.
SECTION 7.32.(g) Payment of fees from these funds by local school administrative units to partnering community colleges and universities are restricted to technology or course fees. Funds appropriated in this act shall not be used to support the cost of athletic or other student activity or campus fees not required by enrollment in a specific course.
SECTION 7.32.(h) The State Board of Education shall allot funds for university enrollment, tuition and fees, and textbooks on the basis of and after verification of the credit hour enrollment of Learn and Earn students in university courses. The State Board of Education shall allot funds for community college fees and textbooks on the basis of and after verification of the credit hour enrollment of Learn and Earn students in community college courses."
SECTION 7.12.(a) Notwithstanding G.S. 143‑23, the State Board of Education may, in consultation with the Office of Information Technology Services, use funds appropriated in this act for NC WISE to create a maximum of 20 positions and incur expenditures necessary to transfer the maintenance and administration of the NC WISE system from the vendor to the Department of Public Instruction.
SECTION 7.12.(b) The Department of Public Instruction shall report on a quarterly basis to the Joint Legislative Education Oversight Committee on the implementation of the NC WISE project.
SECTION 7.13.(a) Funds in the amount of four million seven hundred sixty‑seven thousand four hundred dollars ($4,767,400) are appropriated to support the selection and hiring of 100 literacy coaches. Coaches will be hired and placed in 100 middle schools or other public schools with an eighth grade class. A site selection process including formal criteria will be developed by the State Board of Education in consultation with the North Carolina Teacher Academy. The site must receive formal approval of the State Board of Education to receive funds for this purpose. Sites prioritized for selection will include representation from a wide demographic and will include, but will not be limited to, feeder schools to Learn and Earn schools, New Schools Project schools, Disadvantaged Student Supplemental Funding (DSSF) districts, or select schools with the lowest tier of reading scores in the most recent three years on end‑of‑grade tests. To be selected, schools must (i) contain an eighth grade class, and (ii) ensure that Literacy Coaches will have no administrative responsibilities in the schools in which they are placed.
SECTION 7.13.(b) National Board for Professional Teaching Standards (NBPTS) certified teachers serving in these positions shall be exempt from the requirements in G.S.115C‑296.2(b)(2)d. and shall remain on the NBPTS teacher salary schedule.
expand LEA access to EDUCATION VALUE ADDED ASSESSMENT SYSTEM (EVAAS)
SECTION 7.14.(a) The State Board of Education shall identify local school administrative units to receive funds for purchasing licenses to EVAAS diagnostic software based on criteria that shall include (i) identified need, (ii) readiness, and (iii) county wealth, as defined in the Low‑Wealth Supplemental Funding Formula. The Board shall identify as many units as possible within funds available for this purpose.
SECTION 7.14.(b) Funds appropriated for EVAAS in the 2005‑2006 fiscal year shall not revert, but shall be carried forward to the 2006‑2007 fiscal year for expenditures for training related to expanding local school administrative units' access to the EVAAS tool. Any such funds not spent by June 30, 2007, shall revert to the General Fund.
SECTION 7.14.(c) This section becomes effective June 30, 2006.
clarify definition: public school capital funds
SECTION 7.15. G.S. 115C‑546.2(d)(2)a. reads as rewritten:
"a. "Effective
county tax rate" means the actual county tax rate rate,
including any countywide supplemental taxes levied for the benefit of public
schools, multiplied by a three‑year weighted average of the most
recent annual sales assessment ratio studies."
NORTH CAROLINA VIRTUAL public SCHOOL
SECTION 7.16.(a) The North Carolina Virtual Public School (NCVPS) program shall report to the State Board of Education and shall maintain an administrative office at the Department of Public Instruction
SECTION 7.16.(b) The Director of NCVPS will ensure that course quality standards are established and met and that all e‑learning opportunities offered by State‑funded entities to public school students are consolidated under the NC Virtual Public School Program, eliminating course duplication. The Director shall report on the proposed consolidation and operating plan for 2007‑2008 to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division no later than January 15, 2007. Consolidation will be completed by June 30, 2007. Notwithstanding G.S 143‑23, the State Board of Education may move funds within the budget to implement the consolidation.
SECTION 7.16.(c) Subsequent to course consolidation, the Director will prioritize e‑learning course offerings for students residing in rural and low‑wealth county LEAs, in order to expand available instructional opportunities. First‑available e‑learning instructional opportunities should include courses required as part of the standard course of study for high school graduation and AP offerings not otherwise available.
SECTION 7.16.(d) The State Board of Education shall develop an allotment formula for funding e‑learning, effective in the 2007‑2008 fiscal year. In developing the formula, the Board shall consider, at a minimum, the following:
(1) The number of students in average daily membership (ADM) projected to enroll in e‑learning,
(2) The projected cost of fees for e‑learning courses,
(3) The extent to which projected enrollment in e‑learning courses affects funding required for other allotments that are based on ADM.
SECTION 7.16.(e) Any funds appropriated in this act for the NCVPS program that are not expended in fiscal year 2006‑2007 shall be carried forward for expenditure in fiscal year 2007‑2008. Any such funds that remain unexpended on June 30, 2008, shall revert to the General Fund.
SECTION 7.17. Notwithstanding G.S. 143‑23, the State Board of Education may use monies from the State Public School Fund in 2006‑2007 only to pay for the additional costs associated with an increased number of registration fees for students enrolling in Distance Education courses.
In preparation for the 2007‑2008 fiscal year, the Office of State Budget and Management is urged to include costs associated with increases in enrollment in Distance Education courses in the continuation budget.
TRANSFER MORE AT FOUR PROGRAM AND OFFICE OF SCHOOL READINESS TO THE DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.18.(a) The More at Four program and the Office of School Readiness are transferred from the Office of the Governor to the Department of Public Instruction effective July 1, 2006. This transfer shall have all of the elements of a Type I transfer, as defined in G.S. 143A‑6. The Office of School Readiness will provide oversight to the More at Four program and other related early childhood and prekindergarten education experiences. An Executive Director for the Office of School Readiness will be appointed by the State Board of Education.
SECTION 7.18.(b) Section 10.67(a) of S.L. 2005‑276 is repealed.
SECTION 7.18.(c) Section 10.67(b) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(b) The
Department of Health and Human Services and the Department of Public
Instruction, with guidance from the Task Force, shall continue the
implementation of the "More at Four" prekindergarten program for at‑risk
four‑year‑olds who are at risk of failure in kindergarten. The
program is available statewide to all counties that choose to participate,
including underserved areas. The goal of the program is to provide quality
prekindergarten services to a greater number of at‑risk children in order
to enhance kindergarten readiness for these children. The program shall be
consistent with standards and assessments established jointly by the Department
of Health and Human Services and the Department of Public Instruction. The
program shall include:
(1) A process and system for identifying children at risk of academic failure.
(2) A process and system for
identifying children who are not being served first priority in formal
early education programs, such as child care, public or private preschools,
Head Start, Early Head Start, early intervention programs, or other such
programs, who demonstrate educational needs, and who are eligible to enter
kindergarten the next school year, as well as children who are underserved.
(3) A curriculum or several
curricula that are research‑based and/or built on sound instructional
theory.recommended by the Task Force. The Task Force will identify and
approve appropriate research‑based curricula. These curricula shall:
(i) focus primarily on oral language and emergent literacy; (ii) engage
children through key experiences and provide background knowledge requisite for
formal learning and successful reading in the early elementary years; (iii)
involve active learning; (iv) promote measurable kindergarten language‑readiness
skills that focus on emergent literacy and mathematical skills; and (v) develop
skills that will prepare children emotionally and socially for kindergarten.
(4) An emphasis on ongoing family involvement with the prekindergarten program.
(5) Evaluation of child
progress through a preassessment and postassessment of children in
the statewide evaluation, as well as ongoing assessment of the children by
teachers.
(6) Guidelines for a system to reimburse local school boards and systems, private child care providers, and other entities willing to establish and provide prekindergarten programs to serve at‑risk children.
(7) A system built upon existing local school boards and systems, private child care providers, and other entities that demonstrate the ability to establish or expand prekindergarten capacity.
(8) A quality‑control
system. Participating providers shall comply with standards and guidelines as
established by the Department of Health and Human Services and the
Department of Public Instruction, and the Task Force. The Department may
use the child care rating system to assist in determining program
participation.
(9) Standards for minimum teacher qualifications. A portion of the classroom sites initially funded shall have at least one teacher who is certified or provisionally certified in birth‑to‑kindergarten education.
(10) A local contribution. Programs must demonstrate that they are accessing resources other than "More at Four".
(11) A system of accountability.
(12) Consideration of the
reallocation of existing funds. In order to maximize current funding and
resources, the Department of Health and Human Services and the
Department of Public Instruction, and the Task Force shall consider the
reallocation of existing funds from State and local programs that provide
prekindergarten‑related care and services."
SECTION 7.18.(d) Section 10.67(c) of S.L. 2005‑276 reads as rewritten:
"SECTION
10.67.(c) The Department of Health and Human Services Department
of Public Instruction shall implement a plan to expand plan for
expansion of the "More at Four" program standards within
existing resources to include four‑ and five‑star‑rated
centers and schools serving four‑year‑olds and develop guidelines
for these programs. The Department shall analyze guidelines for use of the "More
at Four" funds, State subsidy funds, and Smart Start subsidy funds and
devise a complementary plan for administration of funds for all four‑year‑old
classrooms. The "NC Prekindergarten Program Standards"
initiative shall recognize four‑ and five‑star‑rated
centers that choose to apply and meet equivalent "More at Four"
program standards as high quality pre‑k classrooms. Classrooms meeting
these standards shall, have at a minimum, receive curricula and access
to training and workshops for "More at Four" programs. Whenever
expansion slots are available, these classrooms shall have first priority to
receive them.and be considered along with other "More at Four"
programs for T.E.A.C.H. funding. The Department shall ensure that no individual
receives funding from more than one source for the same purpose or activity
during the same funding period. For purposes of this subsection, sources shall
include T.E.A.C.H., W.A.G.E.$., and T.E.A.C.H. Health Insurance programs for
individual recipients.
The "More at Four"
program shall review the number of slots filled by counties on a monthly basis
and shift the unfilled slots to counties with waiting lists. The shifting of
slots shall occur through December 30, 2005, January 31 of each year,
at which time any remaining funds for slots unfilled shall be used to meet the
needs of the waiting list for subsidized child care."
SECTION 7.18.(e) Section 10.67(d) of S.L. 2005‑276 reads as rewritten:
"SECTION
10.67.(d) The Department of Health and Human Services, the Department
of Public Instruction, and the Task Force shall submit a report by February 1,
2006 The Department of Public Instruction shall submit a report by
February 1, 2007, to the Joint Legislative Commission on Governmental
Operations, the Joint Legislative Education Oversight Committee, the Senate
Appropriations Committee on Health and Human Services Education,
the House of Representatives Appropriations Subcommittee on Health and Human
Services Education, and the Fiscal Research Division. This final
report shall include the following:
(1) The number of children participating in the program.
(2) The number of children participating in the program who have never been served in other early education programs, such as child care, public or private preschool, Head Start, Early Head Start, or early intervention programs.
(3) The expected expenditures for the programs and the source of the local match for each grantee.
(4) The location of program sites and the corresponding number of children participating in the program at each site.
(5) Activities
involving Child Find in counties.
(6)(5) A
comprehensive cost analysis of the program, including the cost per child served
by the program.
(7)(6) The plan for
expansion of "More at Four" through existing resources status
of the NC Prekindergarten initiatives as outlined in this section."
SECTION 7.18.(f) Section 10.67(e) of S.L. 2005‑276 reads as rewritten:
"SECTION
10.67.(e) For the 2005‑2006 and the 2006‑2007 fiscal years,
the "More at Four" program shall establish income eligibility
requirements for the program not to exceed seventy‑five percent (75%) of
the State median income to make the program consistent with the child care
subsidy requirements. Up to twenty percent (20%) of children enrolled may
have family incomes in excess of seventy‑five percent (75%) of median
income if they have other designated risk factors."
SECTION 7.18.(g) Section 10.67(f) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(f) The
"More at Four" program funding shall not supplant any funding for
classrooms serving four‑year‑olds as of the 2003‑2004 2005‑2006
fiscal year. Support of existing four‑year‑old classrooms with "More
at Four" program funding shall be permitted when current funding is
eliminated, reduced or redirected as required to meet other specified federal
or State educational mandates."
SECTION 7.18.(h) Section 10.67(g) of S.L. 2005‑276 is repealed.
SECTION 7.18.(i) G.S. 115C‑242(1) reads as rewritten:
"(1) A school bus may be
used for the transportation of pupils enrolled in and employees in the
operation of the school to which such bus is assigned by the superintendent of
the local school administrative unit. Except as otherwise herein provided, such
transportation shall be limited to transportation to and from such school for
the regularly organized school day, and from and to the points designated by
the principal of the school to which such bus is assigned, for the receiving
and discharging of passengers. No pupil or employee shall be so transported
upon any bus other than the bus to which such pupil or employee has been
assigned pursuant to the provisions of this Article: Provided, that children
enrolled in a Headstart program or any More at Four program which is
housed in a building owned and operated by a local school administrative unit
where school is being conducted may be transported on public school buses, and
any additional costs associated with such so long as the contractual
arrangements shall be incurred by the benefitting Head Start or More at Four
program made cause no extra expense to the State: Provided further,
that children with special needs may be transported to and from the nearest
appropriate private school having a special education program approved by the
State Board of Education if the children to be transported are or have been
placed in that program by a local school administrative unit as a result of the
State or the unit's duty to provide such children with a free appropriate public
education."
administrative funding for teaching fellows program
SECTION 7.19.(a) G.S. 115C‑363.23A(f) reads as rewritten:
"(f) All funds appropriated to or otherwise received by the Teaching Fellows Program for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund shall be used for scholarship loans granted under the Teaching Fellows Program. With the prior approval of the General Assembly in the Current Operations Appropriations Act, the revolving fund may also be used for campus and summer program support, and costs related to disbursement of awards and collection of loan repayments.
The Public School Forum, as
administrator for the Teaching Fellows Program, may use up to one hundred
fifty thousand dollars ($150,000) annually eight hundred ten thousand
dollars ($810,000) for the 2006‑2007 fiscal year from the fund
balance for costs associated with administration of the Teaching Fellows Program.
In subsequent fiscal years, this amount shall be increased by the Office of
State Budget and Management as necessary to provide salary increases to Program
employees commensurate with legislative salary increases for State employees."
SECTION 7.19.(b) The additional funding provided for administration of the Teaching Fellows Program in G.S. 115C‑363.23A(f), as rewritten by subsection (a) of this section, shall be used to meet current administrative expenses of the Program, expand minority recruitment initiatives, and expand the Program to up to four additional campuses using a merit‑based selection process developed by the North Carolina Teaching Fellows Commission.
The Teaching Fellows Program shall report to the Joint Legislative Education Oversight Committee by December 1, 2006, on the campuses selected and on the selection process.
REFUND OF LOCAL SALES AND USE TAXES TO A LOCAL SCHOOL ADMINISTRATIVE UNIT
SECTION 7.20.(a) G.S. 105‑467(b) reads as rewritten:
"(b) Exemptions and
Refunds. – The State exemptions and exclusions contained in G.S. 105‑164.13,
the State sales and use tax holiday contained in G.S. 105‑164.13C,
and the State refund provisions contained in G.S. 105‑164.14 apply
to the local sales and use tax authorized to be levied and imposed under this
Article. AExcept as provided in this subsection, a taxing county
may not allow an exemption, exclusion, or refund that is not allowed under the
State sales and use tax. A local school administrative unit and a joint
agency created by interlocal agreement among local school administrative units
pursuant to G.S. 160A‑462 to jointly purchase food service‑related
materials, supplies, and equipment on their behalf is allowed an annual refund
of sales and use taxes paid by it under this Article on direct purchases of
tangible personal property and services, other than electricity and
telecommunications service. Sales and use tax liability indirectly incurred by the
entity on building materials, supplies, fixtures, and equipment that become a
part of or annexed to any building or structure that is owned or leased by the
entity and is being erected, altered, or repaired for use by the entity is
considered a sales or use tax liability incurred on direct purchases by the
entity for the purpose of this subsection. A request for a refund shall be in
writing and shall include any information and documentation required by the
Secretary. A request for a refund is due within six months after the end of the
entity's fiscal year. Refunds applied for more than three years after the due
date are barred."
SECTION 7.20.(b) Section 7.51(c) of S.L. 2005‑276, as amended by Section 7 of S.L. 2005‑345, reads as rewritten:
"SECTION 7.51.(c) Subsection (b) of this section becomes effective July 1, 2006. Notwithstanding the provisions of G.S. 105‑164.44H, for the 2006‑2007 fiscal year, the amount transferred to the State Public School Fund each quarter shall equal one‑fourth of the amount refunded under G.S. 105‑164.14(c)(2b) and (2c) during the 2005‑2006 fiscal year for State sales and use taxes only plus or minus the percentage of that amount by which the total collection of State sales and use tax increased or decreased during the preceding fiscal year. The remainder of this section becomes effective July 1, 2005, and applies to sales made on or after that date."
SECTION 7.20.(c) This section becomes effective July 1, 2005, and applies to sales made on or after that date.
salary SUPPLEMENT for Math and Science Teachers Pilot Program
SECTION 7.21.(a) Funds in the amount of five hundred fifteen thousand one hundred fifteen dollars ($515,115) are appropriated in this act for a pilot program providing for a salary supplement for newly hired teachers (as defined by the State Board of Education) of mathematics or science at the middle or high school level. The State Board of Education shall develop the pilot program and select three local school administrative units to participate in the pilot program. In selecting the units, the Board shall target low‑performing local school administrative units and take geographical diversity into account. Selected local school administrative units shall use salary supplement funds for newly hired teachers at low‑performing schools.
Each of the pilot units shall receive funds to provide for a salary supplement of fifteen thousand dollars ($15,000) to up to 10 newly hired teachers at the middle or high school level who have nonprovisional certification in and are teaching in one or more of the following areas of teacher certification:
(1) Middle grades mathematics,
(2) Middle grades science,
(3) Mathematics (9‑12),
(4) Science (9‑12),
(5) Earth science (9‑12),
(6) Biology (9‑12),
(7) Physics (9‑12), and
(8) Chemistry (9‑12).
SECTION 7.21.(b) In accordance with G.S. 115C‑325 and by way of clarification, it shall not constitute a demotion as that term is defined in G.S. 115C‑325(a)(4) if:
(1) A teacher who receives a salary supplement pursuant to subsection (a) of this section is reassigned to a school at which there is no such salary supplement;
(2) A teacher who receives a salary supplement pursuant to subsection (a) of this section moves to a different local school administrative unit; or
(3) A teacher receives a salary supplement pursuant to subsection (a) of this section and the salary supplement is subsequently discontinued or reduced.
SECTION 7.21.(c) Funds not needed to pay for salary supplements shall revert to the General Fund.
SECTION 7.21.(d) The State Board of Education shall report to the Joint Legislative Education Oversight Committee on the design of the pilot program prior to implementation. The State Board of Education shall report to the Joint Legislative Education Oversight Committee on the implementation of the pilot program by January 15, 2007.
PART VIII. COMMUNITY COLLEGES
SALARIES OF COMMUNITY COLLEGE FACULTY AND PROFESSIONAL STAFF
SECTION 8.1. Section 8.3 of S.L. 2005‑276 is amended by adding a new subsection to read:
"SECTION 8.3.(b1) For the 2006‑2007 school year, the minimum salaries for nine‑month, full‑time, curriculum community college faculty shall be as follows:
Education Level Minimum Salary
2006‑2007
Vocational Diploma/Certificate or Less $31,728
Associate Degree or Equivalent $32,195
Bachelors Degree $34,220
Masters Degree or Education Specialist $36,016
Doctoral Degree $38,607
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members."
use of funds appropriated for isothermal community college
SECTION 8.2. Funds appropriated for composite testing at Isothermal Community College and not used for that purpose may be used to purchase equipment for the Lifelong Learning Center located at Isothermal Community College.
USE OF FUNDS FOR THE COLLEGE INFORMATION SYSTEM PROJECT
SECTION 8.3.(a) Funds appropriated to the Community Colleges System Office for the College Information System Project shall not revert at the end of the 2005‑2006 fiscal year but shall remain available until expended.
SECTION 8.3.(b) Notwithstanding G.S. 143‑23, the Community Colleges System Office may, subject to the approval of the Office of State Budget and Management, in consultation with the Office of Information Technology Services, and after consultation with the Joint Legislative Commission on Governmental Operations, use funds appropriated in this act for the College Information System Project to create a maximum of 20 positions or incur expenditures necessary to transfer the maintenance and administration of the College Information System Project from the vendor to the System Office.
SECTION 8.3.(c) The Community Colleges System Office shall report on a quarterly basis to the Joint Legislative Education Oversight Committee on the implementation of the College Information System Project.
SECTION 8.3.(d) Subsection (a) of this section becomes effective June 30, 2006.
SECTION 8.4.(a) Subject to the approval of the Office of State Budget and Management and cash availability, the North Carolina Community Colleges System Office may carry forward an amount not to exceed ten million dollars ($10,000,000) of the operating funds that were not reverted in fiscal year 2005‑2006 to be reallocated to the State Board of Community Colleges' Equipment Reserve Fund. These funds shall be distributed to colleges consistent with G.S. 115D‑31.
SECTION 8.4.(b) This section becomes effective June 30, 2006.
NC COMMUNITY COLLEGE SYSTEM MAY USE STATE FUNDS IN LIEU OF FEDERAL FUNDS DUE TO FEDERAL MANDATES
SECTION 8.5. Notwithstanding G.S. 143‑23, the Community Colleges System Office may use State literacy funds to fund the State administration of the GED office. Federal funds previously used to support the State administration functions shall be reallocated to the colleges.
REPORT ON THE NCCCS BIONETWORK
SECTION 8.6. The Community Colleges System Office shall report by November 1, 2006, to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division on the implementation of the NCCCS BioNetwork. This report shall include an explanation of the BioNetwork's activities, accomplishments, and expenditures.
STUDY OF NEW AND EXPANDING INDUSTRY TRAINING
SECTION 8.7. The Office of State Budget and Management shall conduct a study to analyze and evaluate the New and Expanding Industry Training program of the North Carolina Community College System. This study shall examine the companies served, the number of times each company has been served, the number of jobs created, the length of time the company has remained in North Carolina after receiving New and Expanding Industry Training funds, and whether the company has maintained employment levels at the same level promised when training was received. The findings of the study shall be reported to the Joint Legislative Education Oversight Committee no later than April 1, 2007.
MATCHING REQUIREMENT FOR BOND FUNDS
SECTION 8.8. Section 3(d) of S.L. 2000‑3 reads as rewritten:
"Section 3.(d) If the
State Board of Community Colleges determines that a community college has not
met its matching requirements by July 1, 2006,2007, with respect
to a capital improvement project for which bond proceeds are allocated in this
act, the Board shall certify that fact to the State Treasurer by October 1, 2006.2007.
All of these bond proceeds with respect to which the Board certifies that the
matching requirement has not been met by July 1, 2006,2007, shall
be placed by the State Treasurer in a special account within the Community
Colleges Bond Fund and shall be used for making grants to community colleges.
Bond proceeds in the special account shall be allocated among the community
colleges in accordance with the following conditions:
(1) The State Board of
Community Colleges shall generate, by October 1, 2006,2007, a
priority ranking of legitimate community college capital improvement needs
using a formula based on objective meaningful factors relevant to capital
needs, including actual and projected enrollment, space requirements, current
capacity, construction costs, and any other factors the State Board considers
relevant.
(2) The State Board of Community Colleges shall provide the State Treasurer a projected allocation of the proceeds in the special account in accordance with this priority ranking, except that:
a. No projected allocation shall be made for a community college that the Board certified in accordance with this subsection had failed to meet a matching requirement.
b. No more than four million dollars ($4,000,000) shall be allocated to a single community college.
c. Funds shall not be allocated for more than one project per community college.
(3) The proceeds of grants made from bond proceeds in the special account shall be allocated and expended for paying the cost of community college capital improvements in accordance with this allocation by the State Board of Community Colleges, to the extent and as provided in this act. The Director of the Budget is empowered, when the Director of the Budget determines it is in the best interest of the State and the North Carolina Community College System to do so, and if the cost of a particular project is less than the projected allocation, to use the excess funds to increase the size of that project or increase the size of any other project itemized in this section, or to increase the amount allocated to a particular community college within the aggregate amount of funds available under this section. The Director of the Budget shall consult with the Advisory Budget Commission and the Joint Legislative Commission on Governmental Operations before making these changes."
community college low‑wealth funding
SECTION 8.9.(a) G.S. 115D‑31.3 is amended by adding a new subsection to read:
"(j) Use of funds in low‑wealth counties. – Funds retained by colleges or distributed to colleges pursuant to this section may be used to supplement local funding for maintenance of plant if the college does not receive maintenance of plant funds pursuant to G.S. 115D‑31.2, and if the county in which the main campus of the community college is located:
(1) Is designated as a Tier 1 or Tier 2 county in accordance with G.S. 105‑129.3;
(2) Had an unemployment rate of at least two percent (2%) above the State average or greater than seven percent (7%), whichever is higher, in the prior calendar year; and
(3) Is a county whose wealth, as calculated under the formula for distributing supplemental funding for schools in low‑wealth counties, is eighty percent (80%) or less of the State average.
Funds may be used for this purpose only after all local funds appropriated for maintenance of plant have been expended."
SECTION 8.9.(b) This section becomes effective June 30, 2006.
PART iX. UNIVERSITIES
UNC‑NCCCS 2+2 E‑Learning Initiative
SECTION 9.1. The University of North Carolina and Community Colleges System Office shall report by September 1, 2006, to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division of the General Assembly on the implementation of the UNC‑NCCCS 2+2 E‑Learning Initiative. This report shall include:
(1) The courses and programs within the 2+2 E‑Learning Initiative;
(2) The total number of prospective teachers that have taken or are taking part in this initiative to date broken down by the current academic period and each of the previous academic periods since the program's inception;
(3) The total number of teachers currently in the State's classroom, by local school administrative unit, who have taken part in this initiative;
(4) The change in the number of teachers available to schools since the program's inception;
(5) The qualitative data from students, teachers, local school administrative unit personnel, university personnel, and community college personnel as to the impact of this initiative on our State's teaching pool; and
(6) An explanation of the expenditures and collaborative programs between the North Carolina Community College System and The University of North Carolina, including recommendations for improvement.
teacher education program enrollment plans
SECTION 9.2. The University of North Carolina Board of Governors' Task Force on Meeting Teacher Supply and Demand called for the President to develop a plan for enrollment growth in the University System's teacher education programs to respond to the State's shortage of teachers. In a presentation to the Joint Legislative Education Oversight Committee and to the Board of Governors, a commitment was made to increase the number of teacher education graduates. The University of North Carolina General Administration shall obtain plans from each constituent institution as to how they will maintain their current enrollment in the teacher education programs and achieve their growth targets to ensure such increases in those programs occur. Plans may include using enrollment growth funds for targeted admissions, enhanced student support, and advising, recruiting, increases in faculty in necessary instructional areas that lead to certification, and other methods General Administration believes will achieve those results. The University of North Carolina General Administration shall report back to the Office of State Budget and Management and the Joint Legislative Education Oversight Committee no later than December 30, 2006, on each constituent institution's plan. No later than March 31, 2007, The University of North Carolina General Administration shall submit a report on progress towards meeting this priority for the 2007‑2008 academic year, based on each constituent institution's current students in the education programs, and the students who have been accepted for the 2007‑2008 fiscal year who are enrolling in the education programs. The report shall also explain the distribution of enrollment growth funds by specific initiative.
North Carolina in the World Project
SECTION 9.3. In collaboration with the State Board of Education and the NC Department of Commerce, the NC Center for International Understanding shall develop a plan to ensure that public K‑12 international education efforts such as teacher and student exchanges, curriculum development, and other initiatives for students, teachers, and administrators are focused on key countries and regions of strategic economic interest to North Carolina. The NC Center for International Understanding shall report to the Office of State Budget and Management and the Joint Legislative Education Oversight Committee on the activities and accomplishments of the two hundred thousand dollar ($200,000) nonrecurring appropriation for North Carolina in the World Project no later than March 31, 2007.
Study the feasibility of Adding North Carolina Wesleyan College To UNC System
SECTION 9.4.(a) The Board of Governors of The University of North Carolina shall study the feasibility of making North Carolina Wesleyan College a constituent institution of The University of North Carolina. The study shall include all of the following:
(1) Mission. – The Board of Governors shall evaluate the potential missions of the campus that would meet the academic and economic needs of the region, the State, and of the University System. The Board of Governors shall take into account the need to avoid duplication of curriculum and programs at other campuses, particularly those within the same geographic area, unless the need for duplication is warranted. The Board of Governors shall seek recommendations, suggestions, and comments from community leaders, educational experts, and business leaders in defining the mission of the new campus. Particular focus shall be placed on utilizing the campus in a manner that addresses both the economic and educational challenges of the region in a unique and focused manner, such as in the areas of science, technology, education, and economic development.
(2) Cost. – The Board of Governors shall analyze the potential operating costs of the campus. Factors such as the mission, staff and faculty salaries, benefits, total faculty and staff levels, total projected student enrollment, facility needs, and tuition rates shall be taken into account.
(3) Facility Needs. – The Board of Governors shall consider what additional facility needs there may be, taking into account the proposed mission of the campus. Examples of those needs may be lab facility upgrades, new buildings to house an expanded student population, and associated infrastructure expansion.
(4) Asset Transfer. – The Board of Governors shall obtain legal and financial analyses to determine if there are any restrictions attached to any of the College's assets (title to property, gifts to endowment, assets purchased with restricted grant funds, etc.) that would prohibit the transfer of the assets to the State. If there are restrictions, then the analyses shall also include the steps necessary to lift the restrictions and the costs of obtaining a clear title.
(5) Liability Analysis. – The Board of Governors shall also obtain a legal analysis to determine whether there are pending liabilities against the campus or reasonably foreseeable future liabilities against the campus. If there are such liabilities, the legal analysis shall also address the action needed to avoid transfer of any liability to the State.
(6) Transition of Current Students/Programs. – The Board of Governors shall consider how best to handle the transition of the currently enrolled student population, both on and off campus, into continuing or new curriculum programs during the conversion period.
(7) Personnel. – The Board of Governors shall assess the employment status of current personnel to determine what, if any, contractual and other employment issues may arise in the conversion.
(8) Legislative Action. – The Board of Governors shall determine the legislative action and statutory amendments needed to authorize and implement the conversion.
SECTION 9.4.(b) Of the funds available to the Board of Governors of The University of North Carolina, the sum of fifty thousand dollars ($50,000) for the 2006‑2007 fiscal year shall be used to conduct the study required by this act.
SECTION 9.5.(a) G.S. 143B‑372.1 reads as rewritten:
"§ 143B‑372.1. North Carolina Progress Board.
(a) The North Carolina Progress Board is established. The Board shall be located administratively in the Board of Governors of The University of North Carolina and may be located at any constituent institution within The University of North Carolina, or at any institution to which it is invited formally, but shall exercise all its prescribed statutory powers independently of the Board of Governors or the institution at which it resides.
(b) The North Carolina Progress Board shall consist of 24 members of statewide prominence as follows:
(1) The Governor,
ex officio;
(2) Eight Six persons
appointed by the Governor, none of whom shall be State employees or officers;
(3) Five Six persons
appointed by the Speaker of the House of Representatives, two of whom shall be
members of the House of Representatives;
(4) Five Six persons
appointed by the President Pro Tempore of the Senate, two of whom shall be
members of the Senate; and
(5) Five Six persons
appointed by the North Carolina Progress Board.
(c) The Governor or the
Governor's designee shall be chair of the North Carolina Progress Board. The
Governor Progress Board shall appoint elect a vice‑chair
chair from among the membership of the North Carolina Progress
Board to serve at the pleasure of the Governor. Progress Board. The
North Carolina Progress Board may elect such other any officers
as it sees fit.
(d) The North Carolina Progress Board shall meet at least twice annually on the call of the chair or as additionally provided by the North Carolina Progress Board. A quorum is 12 members of the Board. Members may not send designees to board meetings, nor may they vote by proxy.
(e) Board appointments shall be for terms to begin July 1, 1999, with subsequent appointments to be made as terms expire or resignations occur. Of the Governor's appointments, two shall be for one‑year terms, two shall be for two‑year terms, two shall be for three‑year terms, and two shall be for four‑year terms. Of the appointments made by the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the North Carolina Progress Board, one member appointed by each shall be appointed for a one‑year term, one member appointed by each shall be appointed for a two‑year term, one member appointed by each shall be appointed for a three‑year term, and two members appointed by each shall be appointed for a four‑year term. As terms expire, successors shall be appointed for four‑year terms.
(d1) Effective July 1, 2006, the initial term for the additional member appointed by the Speaker of the House of Representatives to the North Carolina Progress Board shall be for a four‑year term to begin on July 1, 2006, and the initial term for the additional member appointed by the President Pro Tempore of the Senate to the North Carolina Progress Board shall be for a four‑year term to begin on July 1, 2006. The Governor shall not appoint any members on July 1, 2006, for four‑year terms.
(f) No member may be appointed to more than two consecutive terms. A member of the House of Representatives appointed by the Speaker of the House vacates membership on the North Carolina Progress Board when that person is no longer a member of the House of Representatives, except that if that person is in office at the expiration of the term of office in the House of Representatives but has not been elected to the next term, that person shall continue to serve until the convening of the regular session. A member of the Senate appointed by the President Pro Tempore of the Senate vacates membership on the North Carolina Progress Board when that person is no longer a member of the Senate, except that if that person is in office at the expiration of the term of office in the Senate but has not been elected to the next term, that person shall continue to serve until the convening of the regular session."
SECTION 9.5.(b) G.S. 143B‑372.3 reads as rewritten:
"§ 143B‑372.3. Staff.
(a) Upon the
recommendation of the Board, the Governor The Progress Board or its
supporting nonprofit entity shall appoint an Executive Director who
shall serve at the pleasure of the Board and the Governor but, for administrative
purposes, shall report to the Board of Governors of The University of North
Carolina. The Executive Director shall report to the North Carolina Progress
Board and the Governor. The Executive Director shall hire or contract with
support staff, who shall work at the pleasure of the Executive Director.staff
and obtain any other resources and take any other actions reasonably required
to fulfill the duties of the Progress Board as set forth in G.S. 143B‑372.2.
(b) The Office of State Budget and Management shall also provide support, information, reports, and other assistance to the North Carolina Progress Board as requested.
(c) Repealed by Session Laws 1999‑237, s. 10.12(a)."
Graduate Nurse Scholarship Program for Faculty Production
SECTION 9.6. Article 9H of Chapter 90 of the General Statutes is amended by adding the following new sections to read:
"§ 90‑171.95. Graduate Nurse Scholarship Program for Faculty Production established; administration.
(a) There is established the Graduate Nurse Scholarship Program for Faculty Production. The North Carolina Nursing Scholars Commission shall determine selection criteria, methods of selection, and shall select recipients of scholarship loans made under the Graduate Nurse Scholarship Program for Faculty Production.
(b) The Graduate Nurse Scholarship Program for Faculty Production shall be used to provide the following:
(1) A scholarship loan for up to two years in the amount of fifteen thousand dollars ($15,000) per year, per recipient, to students enrolled in a masters degree program in nursing education or any other area of the nursing field that would permit them to become a nursing instructor at a North Carolina community college or university.
(2) A scholarship loan for up to three years in the amount of fifteen thousand dollars ($15,000) per year, per recipient, to students enrolled in a doctoral degree program in nursing education or any other area of the nursing field that would permit them to become a nursing instructor at a North Carolina community college or university.
The State Education Assistance Authority shall adopt specific rules to regulate these scholarship loans.
(b1) If a recipient is awarded a scholarship loan under this program and is enrolled, or accepted for enrollment, in an eligible program, but is unable to pursue the course of study in nursing for a semester due to limited faculty resources at the institution for that semester, then the recipient shall continue to receive the scholarship loan for that semester and shall not be required to forfeit or repay the scholarship loan for that semester, provided that the recipient remains otherwise eligible for the program. This waiver shall be valid for only one semester of study and may extend a recipient's eligibility for funding under the program by no more than one semester.
(c) The Commission shall adopt stringent standards, which may include minimum grade point average, scholastic aptitude test scores, and other standards deemed appropriate by the Commission, to ensure that only the best potential students receive loans under the Graduate Nurse Scholarship Program for Faculty Production. Standards adopted by the Commission shall include provisions for ensuring that the qualifications of applicants who are or would be nontraditional students are considered fairly in providing them with opportunities to compete for the loans. Loans under the Graduate Nurse Scholarship Program for Faculty Production shall be awarded only to applicants who meet the standards set by the Commission and who agree to teach in a North Carolina public nursing program upon completion of the nursing education program supported by the loan.
(d) The Commission shall develop and administer the Graduate Nurse Scholarship Program for Faculty Production in cooperation with nursing schools at institutions approved by the Commission and the North Carolina Board of Nursing. The Graduate Nurse Scholarship Program for Faculty Production shall provide for participants to be exposed to a range of extracurricular activities while in school, which activities shall be aimed at instilling in students a strong motivation to remain in the practice of nursing education and to provide leadership for the nursing profession.
(e) The Commission may form regional review committees to assist it in identifying the best high school seniors and other applicants for the program. The Commission and the review committees shall make an effort to identify and encourage minority students and students who may not otherwise consider a career in nursing to apply for the Graduate Nurse Scholarship Program for Faculty Production.
(f) Upon the naming of recipients of loans from the Graduate Nurse Scholarship Program for Faculty Production, the Commission shall inform the State Education Assistance Authority (SEAA) of its decisions. The SEAA shall perform all of the administrative functions necessary to implement this Article, which functions shall include: rulemaking, dissemination of information to the public, distribution and receipt of applications for scholarship loans, and the functions necessary for the execution, payment, and enforcement of promissory notes required under this Article.
"§ 90‑171.96. Terms of loans; receipt and disbursement of funds.
(a) All scholarship loans shall be evidenced by notes made payable to the State Education Assistance Authority that bear interest at the rate of ten percent (10%) per year beginning 90 days after completion of the nursing education program, or 90 days after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated upon the recipient's withdrawal from school or by the recipient's failure to meet the standards set by the Commission.
(b) The State Education Assistance Authority shall forgive the loan if, within seven years after graduation from a nursing education program, the recipient teaches in a public nursing education program in a public educational institution in North Carolina for one year for every year a scholarship loan was provided. If the recipient repays the scholarship loan by cash payments, all indebtedness shall be repaid within 10 years. The Authority may provide for accelerated repayment and for less than full‑time employment options to encourage the practice of nursing education in either geographic or nursing specialty shortage areas. The Authority shall adopt specific rules to designate these geographic areas and these nursing specialty shortage areas, upon recommendations of the North Carolina Center for Nursing. The North Carolina Center for Nursing shall base its recommendations on objective information provided by interested groups or agencies and upon objective information collected by the Center. The Authority may forgive the scholarship loan if it determines that it is impossible for the recipient to teach in a public nursing program in North Carolina for a sufficient time to repay the loan because of the death or permanent disability of the recipient within 10 years following graduation or termination of enrollment in a nursing education program.
(c) All funds appropriated to or otherwise received by the Graduate Nurse Scholarship Program for Faculty Production for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund may be used only for scholarship loans granted under the Graduate Nurse Scholarship Program for Faculty Production."
Management Flexibility to Reorganize Budget Code 16012 UNC Board of Governors Related Educational Programs
SECTION 9.7. Notwithstanding G.S. 143‑23, for the 2006‑2007 fiscal year, the General Administration of The University of North Carolina and the State Educational Assistance Authority shall, with the approval of the Office of State Budget and Management, reorganize budget code 16012, UNC Board of Governors Related Educational Programs, so that the budget reflects and segregates each specific program individually. The Office of State Budget and Management shall work with The University of North Carolina General Administration and the State Educational Assistance Authority to ensure that each program represented in code 16012 is identified and budgeted separately.
SECTION 9.8. G.S. 116‑30.2(a) reads as rewritten:
"(a) All General Fund appropriations made by the General Assembly for continuing operations of a special responsibility constituent institution of The University of North Carolina shall be made in the form of a single sum to each budget code of the institution for each year of the fiscal period for which the appropriations are being made. Notwithstanding G.S. 143‑23(a1), G.S. 143‑23(a2), and G.S. 120‑76(8), each special responsibility constituent institution may expend monies from the overhead receipts special fund budget code and the General Fund monies so appropriated to it in the manner deemed by the Chancellor to be calculated to maintain and advance the programs and services of the institutions, consistent with the directives and policies of the Board of Governors. Special responsibility constituent institutions may transfer appropriations between budget codes. These transfers shall be considered certified even if as a result of agreements between special responsibility constituent institutions. The preparation, presentation, and review of General Fund budget requests of special responsibility constituent institutions shall be conducted in the same manner as are requests of other constituent institutions. The quarterly allotment procedure established pursuant to G.S. 143‑17 shall apply to the General Fund appropriations made for the current operations of each special responsibility constituent institution. All General Fund monies so appropriated to each special responsibility constituent institution shall be recorded, reported, and audited in the same manner as are General Fund appropriations to other constituent institutions."
Nursing Scholars Program Modification
SECTION 9.9.(a) G.S. 90‑171.61 reads as rewritten:
"§ 90‑171.61. Nursing Scholars Program established; administration.
(a) There is established the Nursing Scholars Program. The North Carolina Nursing Scholars Commission shall determine selection criteria, methods of selection, and shall select recipients of scholarship loans made under the Nursing Scholars Program.
(b) The Nursing Scholars Program shall be used to provide the following:
(1) A four‑year
scholarship loanScholarship loans in the amountamounts of
up to of five thousand dollars ($5,000)six thousand five hundred
dollars ($6,500) per year, for each scholarship of no more than four
years per recipient, to North Carolina high school seniors or other
personsresidents interested in preparing to become a
registered nurse nurses through a associate or
baccalaureate degree program.programs or through diploma programs.
(2) A two‑year
scholarship loan in the amount of three thousand dollars ($3,000) per year, per
recipient, to persons interested in preparing to be a registered nurse through
an associate degree nursing program or a diploma nursing program.
(3) A two‑year
scholarship loan in the amount of three thousand dollars ($3,000) per year, per
recipient, for two years of baccalaureate nursing study for college juniors or
community college graduates interested in preparing to be a registered nurse.
(4) A two‑year
scholarship loan of three thousand dollars ($3,000) per year, per recipient,
for two years of baccalaureate study in nursing for registered nurses who do
not hold a baccalaureate degree in nursing.
(5) A two‑year
scholarship loanScholarship loans of six thousand five hundred
dollars ($6,000)($6,500) per year, per recipient, for two years
of study leading to a master of science in nursing degree for people residents
already holding a baccalaureate degree in nursing.
In addition to theawarding
scholarship loans awarded pursuant to subdivisions (1) through and
(5) of this subsection, the Commission may award pro rata scholarship loans to
recipients enrolled at least half‑time in study to become registered
nurses or to attain a master of science in nursing degree.in study
leading to a master of science in nursing degree who already hold a
baccalaureate degree in nursing and to recipients enrolled at least half‑time
in study leading to a baccalaureate degree in nursing who already are licensed
as registered nurses. In awarding all scholarship loans, the Commission
shall give priority to full‑time students over part‑time students.
The State Education Assistance Authority shall adopt specific rules to regulate
scholarship loans to part‑time master of science in nursing students
and part‑time baccalaureate degree students.students.
Within current funds available or
with any additional funds provided by the General Assembly for this purpose,
the Commission may set aside slots for scholarship loans prescribed by subdivisions
(1) and (2) subdivision (1) of this subsection to enable licensed
practical nurses to become registered nurses. The State Education Assistance
Authority shall adopt specific rules to regulate these scholarship loans.
(b1) If a recipient is awarded a scholarship loan under this program and is enrolled, or accepted for enrollment, in a baccalaureate nursing program, but is unable to pursue the course of study in nursing for a semester due to limited faculty resources at the institution for that semester, then the recipient shall continue to receive the scholarship loan for that semester and shall not be required to forfeit or repay the scholarship loan for that semester provided that the recipient remains otherwise eligible for the program. This waiver shall be valid for only one semester of study and may extend a recipient's eligibility for funding under the program by no more than one semester.
(c) The Commission shall adopt stringent standards, which may include minimum grade point average, scholastic aptitude test scores, and other standards deemed appropriate by the Commission, to ensure that only the best potential students receive and retain loans under the Nursing Scholars Program. Standards adopted by the Commission shall include provisions for ensuring that the qualifications of applicants who are or would be nontraditional students are considered fairly in providing them with opportunities to compete for the loans. Loans under the Nursing Scholars Program shall be awarded only to applicants who meet the standards set by the Commission and who agree to practice nursing in North Carolina upon completion of the nursing education program supported by the loan.
(d) The Commission shall develop and administer the Nursing Scholars Program in cooperation with nursing schools at institutions approved by the Commission and the North Carolina Board of Nursing. The Nursing Scholars Program shall provide for participants to be exposed to a range of extracurricular activities while in school, which activities shall be aimed at instilling in students a strong motivation to remain in the practice of nursing and to provide leadership for the nursing profession.
(e) The Commission may form regional review committees within North Carolina to assist it in identifying the best high school seniors and other applicants for the program. The Commission and the review committees shall make an effort to identify and encourage minority students and students who may not otherwise consider a career in nursing to apply for the Nursing Scholars Program.
(f) Upon the naming of recipients of loans from the Nursing Scholars Program, the Commission shall inform the State Education Assistance Authority (SEAA) of its decisions. The SEAA shall perform all of the administrative functions necessary to implement this Article, which functions shall include: rule‑making, dissemination of information to the public, distribution and receipt of applications for scholarship loans, and the functions necessary for the execution, payment, and enforcement of promissory notes required under this Article."
SECTION 9.9.(b) This section applies to all scholarship loans awarded or renewed on or after July 1, 2006.
UNC Board of Governors Medical and Dental Scholarships
SECTION 9.10.(a) Section 9.9(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 9.9.(a) The current Board of Governors' Dental Scholarship Program, under the purview of the Board of Governors of The University of North Carolina, shall make any awards to students admitted after July 1, 2005, as scholarship loan awards. The Board of Governors' Dental Scholarship Program is administered by the Board of Governors of The University of North Carolina. The Board of Governors' Dental Scholarship Program shall be used to provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers for first‑year students, required dental equipment, and an annual payment of five thousand dollars ($5,000) per year to students who have been accepted for admission to the School of Dentistry at the University of North Carolina at Chapel Hill. The Board may adopt standards, including minimum grade point average and DAT scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program. All scholarship loans shall be evidenced by notes made payable to the Board that shall bear interest at the rate of ten percent (10%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Board. The Board shall forgive the loan if, within seven years after graduation, the recipient practices dentistry in North Carolina for four years. An extension of the seven‑year period for satisfaction of the service requirements for the scholarship loan may be granted subject to the approval on the finding of extenuating circumstances by the State Education Assistance Authority. Such extenuating circumstances may include, but are not be limited to, participation in a dental residency program. The Board shall also forgive the loan if it finds that it is impossible for the recipient to practice dentistry in North Carolina for four years, within seven years after graduation, because of the death or permanent disability of the recipient. All unused funds appropriated to or otherwise received by the Board for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds shall revert to the General Fund at the end of each fiscal year."
SECTION 9.10.(b) Section 9.10(a) reads as rewritten:
"SECTION 9.10.(a) The current Board of Governors' Medical Scholarship Program, under the purview of the Board of Governors of The University of North Carolina, shall make any awards to students admitted after July 1, 2005, as scholarship loan awards. The Board of Governors' Medical Scholarship Program is administered by the Board of Governors of The University of North Carolina. The Board of Governors' Medical Scholarship Program shall be used to provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers, and an annual payment of five thousand dollars ($5,000) per year to students who have been accepted for admission to either Duke University School of Medicine, Brody School of Medicine at East Carolina University, the University of North Carolina at Chapel Hill School of Medicine, or the Wake Forest University School of Medicine. The Board may adopt standards, including minimum grade point average and MCAT scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program. All scholarship loans shall be evidenced by notes made payable to the Board that shall bear interest at the rate of ten percent (10%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Board. The Board shall forgive the loan if, within seven years after graduation, the recipient practices medicine in North Carolina for four years. An extension of the seven‑year period for satisfaction of the service requirements of the scholarship loan may be granted subject to the approval of the State Education Assistance Authority. Such extenuating circumstances may include, but not be limited to, participation in a medical residency program. The Board shall also forgive the loan if it finds that it is impossible for the recipient to practice medicine in North Carolina for four years, within seven years after graduation, because of the death or permanent disability of the recipient. All unused funds appropriated to or otherwise received by the Board for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds shall revert to the General Fund at the end of each fiscal year."
SECTION 9.10.(c) This section is effective when it becomes law and applies to all scholarship loans issued after July 1, 2005.
NC School of Science and Math/High School Constituent Institution
SECTION 9.11.(a) G.S. 116‑2 reads as rewritten:
"§ 116‑2. Definitions.
As used in this Article, unless the context clearly indicates a contrary intent:
(1) "Board" means the Board of Governors of the University of North Carolina.
(2) "Board of trustees" means the board of trustees of a constituent institution.
(3) "Chancellor" means the chancellor of a constituent institution.
(4) "Constituent
institution" or "institution" means one of the 16 public senior
institutions, institutions of higher education, to wit, the
University of North Carolina at Chapel Hill, North Carolina State University at
Raleigh, the University of North Carolina at Greensboro, the University of
North Carolina at Charlotte, the University of North Carolina at Asheville, the
University of North Carolina at Wilmington, Appalachian State University, East
Carolina University, Elizabeth City State University, Fayetteville State
University, North Carolina Agricultural and Technical State University, North
Carolina Central University, North Carolina School of the Arts, Pembroke State
University, redesignated effective July 1, 1996, as the "University of
North Carolina at Pembroke", Western Carolina University, and Winston‑Salem
State University.University, and the constituent high school, the
North Carolina School of Science and Mathematics.
(5) "President" means the President of the University of North Carolina.
(6) "Vending facilities" has the same meaning as it does in G.S. 143‑12.1."
SECTION 9.11.(b) G.S. 116‑4 reads as rewritten:
"§ 116‑4. Constituent institutions of the University of North Carolina.
On July 1, 1972, the The
University of North Carolina shall be composed of the following institutions:institutions
of higher education: the University of North Carolina at Chapel Hill, North
Carolina State University at Raleigh, the University of North Carolina at
Greensboro, the University of North Carolina at Charlotte, the University of
North Carolina at Asheville, the University of North Carolina at Wilmington,
Appalachian State University, East Carolina University, Elizabeth City State
University, Fayetteville State University, North Carolina Agricultural and
Technical State University, North Carolina Central University, North Carolina
School of the Arts, Pembroke State University, redesignated effective July 1,
1996, as the "University of North Carolina at Pembroke", Western
Carolina University and Winston‑Salem State University.University,
and the constituent high School, the North Carolina School of Science and
Mathematics."
SECTION 9.11.(c) G.S. 116‑12 reads as rewritten:
"§ 116‑12. Property and obligations.
All property of whatsoever kind and all rights and privileges held by the Board of Higher Education and by the Boards of Trustees of Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, North Carolina Agricultural and Technical State University, North Carolina Central University, North Carolina School of the Arts, Pembroke State University, redesignated effective July 1, 1996, as the "University of North Carolina at Pembroke", Western Carolina University and Winston‑Salem State University, as said property, rights and privileges may exist immediately prior to July 1, 1972, shall be, and hereby are, effective July 1, 1972, transferred to and vested in the Board of Governors of the University of North Carolina. All obligations of whatsoever kind of the Board of Higher Education and of the Boards of Trustees of Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, North Carolina Agricultural and Technical State University, North Carolina Central University, North Carolina School of the Arts, Pembroke State University, redesignated effective July 1, 1996, as the "University of North Carolina at Pembroke", Western Carolina University and Winston‑Salem State University, as said obligations may exist immediately prior to July 1, 1972, shall be, and the same hereby are, effective July 1, 1972, transferred to and assumed by the Board of Governors of the University of North Carolina. Any property, real or personal, held immediately prior to July 1, 1972, by a board of trustees of a constituent institution for the benefit of that institution or by the University of North Carolina for the benefit of any one or more of its six institutions, shall from and after July 1, 1972, be kept separate and distinct from other property held by the Board of Governors, shall continue to be held for the benefit of the institution or institutions that were previously the beneficiaries and shall continue to be held subject to the provisions of the respective instruments, grants or other means or process by which any property right was acquired. All property of whatsoever kind and all rights and privileges held by the Board of Trustees of the North Carolina School of Science and Mathematics, as said property, rights and privileges may exist immediately prior to July 1, 2007, shall be and hereby are, effective July 1, 2007, transferred to and vested in the Board of Governors of The University of North Carolina. All obligations of whatsoever kind of the Board of Trustees of the North Carolina School of Science and Mathematics as said obligations may exist immediately prior to July 1, 2007, shall be, and the same hereby are, effective July 1, 2007, transferred to and assumed by the Board of Governors of The University of North Carolina. In case a conflict arises as to which property, rights or privileges were held for the beneficial interest of a particular institution, or as to the extent to which such property, rights or privileges were so held, the Board of Governors shall determine the issue, and the determination of the Board shall constitute final administrative action. Nothing in this Article shall be deemed to increase or diminish the income, other revenue or specific property which is pledged, or otherwise hypothecated, for the security or liquidation of any obligations, it being the intent that the Board of Governors shall assume said obligations without thereby either enlarging or diminishing the rights of the holders thereof."
SECTION 9.11.(d) G.S. 116‑17 reads as rewritten:
"§ 116‑17. Purchase of annuity or retirement income contracts for faculty members, officers and employees.
Notwithstanding any provision of
law relating to salaries and/or salary schedules for the pay of faculty
members, administrative officers, or any other employees of universities, colleges
colleges, constituent institutions, and other institutions of
higher learning as named and set forth in this Article, and other State
agencies qualified as educational institutions under section 501(c)(3) of the
United States Internal Revenue Code, the governing boards of any such
universities, colleges colleges, constituent institutions, and other
institutions of higher learning may authorize the business officer or agent of
same to enter into annual contracts with any of the faculty members,
administrative officers and employees of said institutions of higher
learning which provide for a reduction in salary below the total
established compensation or salary schedule for a term of one year. The
financial officer or agent shall use the funds derived from the reduction in
the salary of the faculty member, administrative officer or employee to
purchase a nonforfeitable annuity or retirement income contract for the benefit
of said faculty member, administrative officer or employee of said
universities, colleges and institutions of higher learning.institutions.
A faculty member, administrative officer or employee who has agreed to a salary
reduction for this purpose shall not have the right to receive the amount of
the salary reduction in cash or in any other way except the annuity or
retirement income contract. Funds used for the purchase of an annuity or
retirement income contract shall not be in lieu of any amount earned by the
faculty member, administrative officer or employee before his election for a
salary reduction has become effective. The agreement for salary reductions
referred to herein shall be effected under any necessary regulations and
procedures adopted by the various governing boards of the various institutions of
higher learning and on forms prepared by said governing boards.
Notwithstanding any other provision of this section or law, the amount by which
the salary of any faculty member, administrative officer or employee is reduced
pursuant to this section shall not be excluded, but shall be included, in
computing and making payroll deductions for social security and retirement
system purposes, and in computing and providing matching funds for retirement
system purposes.
In lieu of the annuity and related contracts provided for under this section, interests in custodial accounts pursuant to Section 401(f), Section 403(b)(7), and related sections of the Internal Revenue Code of 1986 as amended may be purchased for the benefit of qualified employees under this section with the funds derived from the reduction in the salaries of such employees."
SECTION 9.11.(e) The catch line of G.S. 116‑30.2 reads as rewritten:
"§
116‑30.2. Appropriations to special responsibility constituent institutions
and to the North Carolina School of Science and Mathematics.institutions."
SECTION 9.11.(f) G.S. 116‑30.2(b) is repealed.
SECTION 9.11.(g) G.S. 116‑31(d) reads as rewritten:
"(d) Effective Except
as provided in G.S. 116‑65, effective July 1, 1973, each of the
16 constituent institutions of higher education set out in G.S. 116‑2(4)
shall have board of trustees composed of 13 persons chosen as follows:
(1) Eight elected by the Board of Governors,
(2) Four appointed by the Governor, and
(3) The president of the student government ex officio.
The Board of Trustees of the North Carolina School of Science and Mathematics shall be established in accordance with G.S. 116‑233."
SECTION 9.11.(h) G.S. 116‑40.22(c) reads as rewritten:
"(c) Tuition and Fees. – Notwithstanding any provision in Chapter 116 of the General Statutes to the contrary, in addition to any tuition and fees set by the Board of Governors pursuant to G.S. 116‑11(7), the Board of Trustees of the institution may recommend to the Board of Governors tuition and fees for program‑specific and institution‑specific needs at that institution without regard to whether an emergency situation exists and not inconsistent with the actions of the General Assembly. The institution shall retain any tuition and fees set pursuant to this subsection for use by the institution. Notwithstanding this subsection, neither the Board of Governors of The University of North Carolina nor its Board of Trustees shall impose any tuition or mandatory fee at the North Carolina School of Science and Mathematics without the approval of the General Assembly."
SECTION 9.11.(i) G.S. 116‑143 reads as rewritten:
"§ 116‑143. State‑supported institutions of higher education required to charge tuition and fees.
The Board of Governors of the The
University of North Carolina shall fix the tuition and fees, not inconsistent
with actions of the General Assembly, at the institutions of higher
education enumerated in G.S. 116‑4 in such amount or amounts as
it may deem best, taking into consideration the nature of each institution and
program of study and the cost of equipment and maintenance; and each
institution shall charge and collect from each student, at the beginning of
each semester or quarter, tuition, fees, and an amount sufficient to pay other
expenses for the term.
In the event that said students are unable to pay the cost of tuition and required academic fees as the same may become due, in cash, the said several boards of trustees are hereby authorized and empowered, in their discretion, to accept the obligation of the student or students together with such collateral or security as they may deem necessary and proper, it being the purpose of this Article that all students in State institutions of higher learning shall be required to pay tuition, and that free tuition is hereby abolished. Notwithstanding this section, neither the Board of Governors of The University of North Carolina nor its Board of Trustees shall impose any tuition or mandatory fee at the North Carolina School of Science and Mathematics without the approval of the General Assembly.
Inasmuch as the giving of tuition
and fee waivers, or especially reduced rates, represent in effect a variety of
scholarship awards, the said practice is hereby prohibited except when
expressly authorized by statute or by the Board of Governors of the The
University of North Carolina; and, furthermore, it is hereby directed and
required that all budgeted funds expended for scholarships of any type must be
clearly identified in budget reports.
Notwithstanding the above
provision relating to the abolition of free tuition, the Board of Governors of the
The University of North Carolina may, in its discretion, provide
regulations under which a full‑time faculty member of the rank of full‑time
instructor or above, and any full‑time staff member of the The
University of North Carolina may during the period of normal employment enroll
for not more than one course per semester in the The University
of North Carolina free of charge for tuition, provided such enrollment does not
interfere with normal employment obligations and further provided that such
enrollments are not counted for the purpose of receiving general fund
appropriations."
SECTION 9.11.(j) G.S. 116‑230.1 reads as rewritten:
"§ 116‑230.1. Policy.
It is hereby declared to be the policy of the State to foster, encourage, promote, and provide assistance in the development of skills and careers in science and mathematics among the people of the State."
SECTION 9.11.(k) G.S. 116‑231 reads as rewritten:
"§
116‑231. Reestablishment of the North Carolina School of Science and
Mathematics as an Affiliated Schoola Constituent High School of
The University of North Carolina.
The North Carolina School of
Science and Mathematics is hereby reestablished, as an affiliateda
constituent high school of The University of North Carolina, and shall be
governed by the Board of Governors as prescribed in this Chapter and a
Board of Trustees as prescribed in this Article."
SECTION 9.11.(l) G.S. 116‑232 reads as rewritten:
"§ 116‑232. Purposes.
The purposes of the School shall
be to foster the educational development of North Carolina high school students
who are academically talented in the areas of science and mathematics and show
promise of exceptional development and global leadership through
participation in a residential educational setting emphasizing instruction in
the areas of science and mathematics; to develop, evaluate, and disseminate
experimental instructional programs; and to serve all schools of the State
through research and outreach activities.and to provide instruction,
methods, and curricula designed to improve teaching and learning in North
Carolina and the nation with an emphasis on distance education and programs that
expand pathways for students into careers in science and mathematics."
SECTION 9.11.(m) The introductory language of G.S. 116‑233(a) reads as rewritten:
"(a) There Notwithstanding
the provisions of G.S. 116‑31(d), there shall be a Board of
Trustees of the School, which shall consist of 27 members as follows:
…"
SECTION 9.11.(n) G.S. 116‑234 reads as rewritten:
"§ 116‑234. Board of Trustees; meetings; rules of procedure; officers.
(a) The Board of Trustees
shall meet at least four three times a year and may hold special
meetings at any time, at the call of the chairman or upon petition addressed to
the chairman by at least four of the members of the Board.
(b) The Notwithstanding
the provisions of G.S. 116‑32, the Board of Trustees shall elect
a chairman and a vice‑chairman; no ex officio member may hold such an
office.
(c) The Board of Trustees shall determine its own rules of procedure and may delegate to such committees as it may create such of its powers as it deems appropriate.
(d) Members of the Board of Trustees, other than ex officio members under G.S. 116‑233(a)(3), shall receive such per diem compensation and necessary travel and subsistence expenses while engaged in the discharge of their official duties as is provided by law for members of State boards and commissions. Ex officio members under G.S. 116‑233(a)(3) shall be reimbursed for travel expenses as provided by G.S. 138‑6."
SECTION 9.11.(o) The catch line of G.S. 116‑235 reads as rewritten:
"§ 116‑235. Board of Trustees; additional powers and duties."
SECTION 9.11.(p) G.S. 116‑235 is amended by adding a new subsection to read:
"(a) In addition to the powers enumerated in Chapter 116, Article I, Part 3, the Board of Trustees shall have the powers and duties set out in this section."
SECTION 9.11.(q) G.S. 116‑235(a) reads as rewritten:
"(a)(a1) Academic
Program. –
(1) The Board of Trustees shall establish the standard course of study for the School. This course of study shall set forth the subjects to be taught in each grade and the texts and other educational materials on each subject to be used in each grade.
(2) The Board of Trustees shall adopt regulations governing class size, the instructional calendar, the length of the instructional day, and the number of instructional days in each term."
SECTION 9.11.(r) G.S. 116‑235(b) reads as rewritten:
"(b) Students. –
(1) Admission of Students. –
The School shall admit students in accordance with criteria, standards, and
procedures established by the Board of Trustees. To be eligible to be
considered for admission, an applicant must be either a legal resident of the
State, as defined by G.S. 116‑143.1(a)(1), or a student whose parent
is an active duty member of the armed services, as defined by G.S. 116‑143.3(2),
who is abiding in this State incident to active military duty at the time the
application is submitted, provided the student shares the abode of that parent;
eligibility to remain enrolled in the School shall terminate at the end of any
school year during which a student becomes a nonresident of the State. The
Board of Trustees shall ensure, insofar as possible without jeopardizing
admission standards, that an equal number of qualified rising high school
juniorsapplicants is admitted to the program and to the residential
summer institutes in science and mathematics from each of North Carolina's
congressional districts. In no event shall the differences in the number of rising
high school juniorsqualified applicants offered admission to the
program from each of North Carolina's congressional districts be more than two
and one‑half percentage points from the average number per district who
are offered admission.
(2) School Attendance. –
Every parent, guardian, or other person in this State having charge or control
of a child who is enrolled in the School and who is less than 16 years of age
shall cause such child to attend school continuously for a period equal to the
time which the School shall be in session. No person shall encourage, entice,
or counsel any child to be unlawfully absent from the School. Any person who
aids or abets a student's unlawful absence from the School shall, upon
conviction, be guilty of a Class 1 misdemeanor. The Director Chancellor
of the School shall be responsible for implementing such additional policies
concerning compulsory attendance as shall be adopted by the Board of Trustees,
including regulations concerning lawful and unlawful absences, permissible
excuses for temporary absences, maintenance of attendance records, and
attendance counseling.
(3) Student Discipline. –
Rules of conduct governing students of the School shall be established by the
Board of Trustees. The Director,Chancellor, other administrative
officers, and all teachers, substitute teachers, voluntary teachers, teacher
aides and assistants, and student teachers in the School may use reasonable
force in the exercise of lawful authority to restrain or correct pupils and
maintain order.
SECTION 9.11.(s) G.S. 116‑235(c) through G.S. 116‑235(h) is repealed.
SECTION 9.11.(t) G.S. 116‑236 is repealed.
SECTION 9.11.(u) G.S. 116‑237 is repealed.
SECTION 9.11.(v) G.S. 116‑238 is repealed
SECTION 9.11.(w) G.S.66‑58(c)(3) reads as rewritten:
"(c) The provisions of subsection (a) shall not prohibit:
…
(3) The business operation of
endowment funds established for the purpose of producing income for educational
purposes; for purposes of this section, the phrase "operation of endowment
funds" shall include the operation by public postsecondary educationalconstituent
institutions of The University of North Carolina of campus stores, the
profits from which are used exclusively for awarding scholarships to defray the
expenses of students attending the institution; provided, that the operation of
the stores must be approved by the board of trustees of the institution, and
the merchandise sold shall be limited to educational materials and supplies,
gift items and miscellaneous personal‑use articles. Provided further
that, notwithstanding this subsection, profits from a campus store operated by
the endowment of the North Carolina School of Science and Mathematics are used
exclusively for student activities, athletics, and other programs to enhance
student life. Provided further that sales at campus stores are limited to
employees of the institution and members of their immediate families, to duly
enrolled students of the campus at which a campus store is located and their
immediate families, to duly enrolled students of other campuses of the
University of North Carolina other than the campus at which the campus store is
located, to other campus stores and to other persons who are on campus other
than for the purpose of purchasing merchandise from campus stores. It is the intent
of this subdivision that campus stores be established and operated for the
purpose of assuring the availability of merchandise described in this Article
for sale to persons enumerated herein and not for the purpose of competing with
stores operated in the communities surrounding the campuses of the University of North Carolina."
SECTION 9.11.(x) G.S. 66‑58(g) is repealed.
SECTION 9.11.(y) G.S. 126‑5(c1)(8) reads as rewritten:
"(c1) Except as to the provisions of Articles 6 and 7 of this Chapter, the provisions of this Chapter shall not apply to:
…
(8) Instructional and
research staff, physicians, and dentists of The University of North Carolina.Carolina,
including the faculty of the North Carolina School of Science and Mathematics.
…"
SECTION 9.11.(z) G.S. 126‑5(c1)(11) is repealed.
SECTION 9.11.(aa) The catch line of G.S. 135‑5.1 reads as rewritten:
"§
135‑5.1. Optional retirement program for State institutions of higher
education.The University of North Carolina."
SECTION 9.11.(bb) G.S. 135‑5.1(a) reads as rewritten:
"(a) An Optional
Retirement Program provided for in this section is authorized and established
and shall be implemented by the Board of Governors of The University of North
Carolina. The Optional Retirement Program shall be underwritten by the purchase
of annuity contracts, which may be both fixed and variable contracts or a
combination thereof, or financed through the establishment of a trust, for the
benefit of participants in the Program. Participation in the Optional
Retirement Program shall be limited to university University
personnel who are eligible for membership in the Teachers' and State Employees'
Retirement Program and who are:
(1) Administrators and faculty of The University of North Carolina with the rank of instructor or above;
(2) The President and employees of The University of North Carolina who are appointed by the Board of Governors on recommendation of the President pursuant to G.S. 116‑11(4), 116‑11(5), and 116‑14 or who are appointed by the Board of Trustees of a constituent institution of The University of North Carolina upon the recommendation of the Chancellor pursuant to G.S. 116‑40.22(b);
(3) Nonfaculty instructional
and research staff who are exempt from the State Personnel Act, as defined by
the provisions of G.S. 126‑5(c1)(8);126‑5(c1)(8),
and the faculty of the North Carolina School of Science and Mathematics;
and
(4) Field faculty of the Cooperative Agriculture Extension Service, and tenure track faculty in North Carolina State University agriculture research programs who are exempt from the State Personnel Act and who are eligible for membership in the Teachers' and State Employees' Retirement System pursuant to G.S. 135‑3(1), who in any of the cases described in this subsection (i) had been members of the Optional Retirement Program under the provisions of Chapter 338, Session Laws of 1971, immediately prior to July 1, 1985, or (ii) have sought membership as required in subsection (b), below. Under the Optional Retirement Program, the State and the participant shall contribute, to the extent authorized or required, toward the purchase of such contracts or deposited in such trust on the participant's behalf."
SECTION 9.11.(cc) G.S. 143‑597(a) is amended by adding a new subdivision to read:
"(7) The North Carolina School of Science and Mathematics."
SECTION 9.11.(dd) This section becomes effective July 1, 2007. Subsection (bb) of this section applies only to eligible persons who are employees as of July 1, 2007, or who are employed thereafter.
Expand Tuition Waiver Program for UNC Faculty & Staff
SECTION 9.12. G.S. 116‑143 reads as rewritten:
"§ 116‑143. State‑supported institutions of higher education required to charge tuition and fees.
(a) The Board of Governors of the University of North Carolina shall fix the tuition and fees, not inconsistent with actions of the General Assembly, at the institutions enumerated in G.S. 116‑4 in such amount or amounts as it may deem best, taking into consideration the nature of each institution and program of study and the cost of equipment and maintenance; and each institution shall charge and collect from each student, at the beginning of each semester or quarter, tuition, fees, and an amount sufficient to pay other expenses for the term.
(b) In the event that said students are unable to pay the cost of tuition and required academic fees as the same may become due, in cash, the said several boards of trustees are hereby authorized and empowered, in their discretion, to accept the obligation of the student or students together with such collateral or security as they may deem necessary and proper, it being the purpose of this Article that all students in State institutions of higher learning shall be required to pay tuition, and that free tuition is hereby abolished.
(c) Inasmuch as the giving of tuition and fee waivers, or especially reduced rates, represent in effect a variety of scholarship awards, the said practice is hereby prohibited except when expressly authorized by statute or by the Board of Governors of the University of North Carolina; and, furthermore, it is hereby directed and required that all budgeted funds expended for scholarships of any type must be clearly identified in budget reports.
(d) Notwithstanding
the above provision relating to the abolition of free tuition, the Board of
Governors of the University of North Carolina may, in its discretion, provide
regulations under which a full‑time faculty member of the rank of full‑time
instructor or above, and any full‑time staff member of the University of
North Carolina may during the period of normal employment enroll for not more
than one course three courses per semester year in
the University of North Carolina free of charge for tuition, provided such
enrollment does not interfere with normal employment obligations and further
provided that such enrollments are not counted for the purpose of receiving
general fund appropriations."
Tuition and Contractual Grants for Teaching/Nursing
SECTION 9.13.(a) G.S. 116‑19 reads as rewritten:
"§
116‑19. Contracts with private institutions to aid North Carolina students;students
and licensure students; reporting requirement.
(a) In order to encourage
and assist private institutions to continue to educate North Carolina students,students
and licensure students, the State Education Assistance Authority may enter
into contracts with the institutions under the terms of which an institution
receiving any funds that may be appropriated pursuant to this section would
agree that, during any fiscal year in which such funds were received, the
institution would provide and administer scholarship funds for needy North
Carolina students and licensure students in an amount at least equal to
the amount paid to the institution, pursuant to this section, during the fiscal
year. Under the terms of the contracts the State Education Assistance Authority
would agree to pay to the institutions, subject to the availability of funds, a
fixed sum of money for each North Carolina student and licensure student enrolled
at the institutions for the regular academic year, said sum to be determined by
appropriations that might be made from time to time by the General Assembly
pursuant to this section. Funds appropriated pursuant to this section shall be
paid by the State Education Assistance Authority to an institution on
certification of the institution showing the number of North Carolina students and
licensure students enrolled at the institution as of October 1 of any year
for which funds may be appropriated. For purposes of this subsection, "needy
North Carolina students"students and licensure students"
are those eligible students and licensure students who have financial
need as determined by the institution under the institutional methodology or
the federal methodology as defined by the State Education Assistance Authority.
For purposes of this subsection, "institutional methodology" means a
need‑analysis formula, developed by College Scholarship Service, that
determines the student's and or licensure student's and his or her family's
capacity to pay for postsecondary education each year.
(b) The State Education Assistance Authority shall document the number of full‑time equivalent North Carolina undergraduate students and full‑time and less than full‑time licensure students that are enrolled in off‑campus programs and the State funds collected by each institution pursuant to G.S. 116‑19 for those students. The State Education Assistance Authority shall also document the number of scholarships and the amount of the scholarships that are awarded under G.S. 116‑19 to students and licensure students enrolled in off‑campus programs. An "off‑campus program" is any program offered for degree credit away from the institution's main permanent campus.
The State Education Assistance Authority shall include in its annual report to the Joint Legislative Education Oversight Committee the information it has compiled and its findings regarding this program."
SECTION 9.13.(b) G.S. 116‑20 reads as rewritten:
"§ 116‑20. Scholarship and contract terms; base period.
In order to encourage and assist private institutions to educate additional numbers of North Carolinians, the Board of Governors of the University of North Carolina is hereby authorized to enter into contracts within the institutions under the terms of which an institution receiving any funds that may be appropriated pursuant to this section would agree that, during any fiscal year in which such funds were received, the institution would provide and administer scholarship funds for needy North Carolina students and licensure students in an amount at least equal to the amount paid to the institution, pursuant to this section, during the fiscal year. Under the terms of the contracts the Board of Governors of the University of North Carolina would agree to pay to the institutions, subject to the availability of funds, a fixed sum of money for each North Carolina student and licensure student enrolled as of October 1 of any year for which appropriated funds may be available, over and above the number of North Carolina students enrolled in that institution as of October 1, 1997, which shall be the base date for the purpose of this calculation. Funds appropriated pursuant to this section shall be paid by the State Education Assistance Authority to an institution upon recommendation of the Board of Governors of the University of North Carolina and on certification of the institution showing the number of North Carolina students and licensure students enrolled at the institution as of October 1 of any year for which funds may be appropriated over the number enrolled on the base date. In the event funds are appropriated for expenditure pursuant to this section and funds are also appropriated, for the same fiscal year, for expenditure pursuant to G.S. 116‑19, students and licensure students who are enrolled at an institution in excess of the number enrolled on the base date may be counted under this section for the purpose of calculating the amount to be paid to the institution, but the same students and licensure students may also be counted under G.S. 116‑19, for the purpose of calculating payment to be made under that section."
SECTION 9.13.(c) G.S. 116‑21.1 reads as rewritten:
"§ 116‑21.1. Financial aid for North Carolina students and licensure students attending private institutions of higher education in North Carolina.
(a) Funds shall be appropriated each fiscal year in the Current Operations Appropriations Act to the Board of Governors of The University of North Carolina for aid to institutions and shall be disbursed in accordance with the provisions of G.S. 116‑19, 116‑21, and 116‑22.
(b) The funds appropriated in compliance with this section shall be placed in a separate, identifiable account in each eligible institution's budget or chart of accounts. All funds in the account shall be provided as scholarship funds for needy North Carolina students and licensure students during the fiscal year. Each student and licensure student awarded a scholarship from this account shall be notified of the source of the funds and of the amount of the award. Funds not utilized under G.S. 116‑19 shall be available for the tuition grant program as defined in G.S. 116‑21.2."
SECTION 9.13.(d) G.S. 116‑21.2 reads as rewritten:
"§ 116‑21.2. Legislative tuition grants to aid students and licensure students attending private institutions of higher education.
(a) In addition to any funds
appropriated pursuant to G.S. 116‑19 and in addition to all other
financial assistance made available to institutions, or to students persons
attending these institutions, there is granted to each full‑time
North Carolina undergraduate student attending an approved institution as
defined in G.S. 116‑22, a sum, to be determined by the General
Assembly for each academic year which shall be distributed to the full‑time
undergraduate student as provided by this subsection.
(a1) The legislative tuition grant provided by this section shall also be granted to each full‑time licensure student who is enrolled in a program intended to result in a license in teaching or nursing at an approved institution. The legislative tuition grant provided by this section shall be awarded on a pro rata basis to any licensure student who is enrolled less than full‑time in a program intended to result in a license in teaching or nursing at an approved institution. The legislative tuition grant and prorated legislative tuition grant authorized under this subsection shall be paid for undergraduate courses only.
(b) The tuition grants
provided for in this section shall be administered by the State Education
Assistance Authority pursuant to rules adopted by the State Education
Assistance Authority not inconsistent with this section. The State Education
Assistance Authority shall not approve any grant until it receives proper
certification from an approved institution that the student or licensure
student applying for the grant is an eligible student.eligible.
Upon receipt of the certification, the State Education Assistance Authority
shall remit at the times as it prescribes the grant to the approved institution
on behalf, and to the credit, of the student.student or licensure
student.
(c) In Except as
provided in subsection (a1) of this section, in the event a student on
whose behalf a grant has been paid is not enrolled and carrying a minimum academic
load as of the tenth classroom day following the beginning of the school term
for which the grant was paid, the institution shall refund the full amount of
the grant to the State Education Assistance Authority. If a licensure
student on whose behalf a prorated grant has been paid in accordance with
subsection (a1) of this section is not enrolled in the undergraduate class as
of the tenth classroom day following the beginning of the school term for which
the grant was paid, the institution shall refund the full amount of the grant
to the State Education Assistance Authority. Each approved institution
shall be subject to examination by the State Auditor for the purpose of
determining whether the institution has properly certified eligibility and
enrollment of students and licensure students and credited grants paid
on behalf of the students.them.
(d) In the event there are
not sufficient funds to provide each eligible student or licensure student
with a full grant:grant as provided by subsection (a) of this section
or a full or a prorated grant as provided by subsection (a1) of this section:
(1) The Board of Governors of
The University of North Carolina, with the approval of the Office of State
Budget and Management, may transfer available funds to meet the needs of the
programs provided by subsections (a) (a), (a1), and (b) of this
section; and
(2) Each eligible student and licensure student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
(e) Any remaining funds shall revert to the General Fund."
SECTION 9.13.(e) G.S. 116‑21.3 reads as rewritten:
"§ 116‑21.3. Legislative tuition grant limitations.
(a) For purposes of this section, an "off‑campus program" is any program offered for degree credit away from the institution's main permanent campus.
(b) No legislative tuition grant funds shall be expended for a program at an off‑campus site of a private institution, as defined in G.S. 116‑22(1), established after May 15, 1987, unless (i) the private institution offering the program has previously notified and secured agreement from other private institutions operating degree programs in the county in which the off‑campus program is located or operating in the counties adjacent to that county or (ii) the degree program is neither available nor planned in the county with the off‑campus site or in the counties adjacent to that county.
(c) Any member of the armed
services, as defined in G.S. 116‑143.3(a), abiding in this State
incident to active military duty, who does not qualify as a resident for
tuition purposes, as defined under G.S. 116‑143.1, is eligible for a
legislative tuition grant pursuant to this section if the member is enrolled as
a full‑time student.undergraduate student or as a licensure
student. The member's legislative tuition grant shall not exceed the cost
of tuition less any tuition assistance paid by the member's employer.
(d) A legislative tuition
grant authorized under G.S. 116‑21.2 G.S. 116‑21.2(a)
shall be reduced by twenty‑five percent (25%) for any individual
student who has completed 140 semester credit hours or the equivalent of 140
semester credit hours."
SECTION 9.13.(f) G.S. 116‑21.4(b) reads as rewritten:
"(b) Expenditures made pursuant to G.S. 116‑19, 116‑20, 116‑21.1, or 116‑21.2 shall not be used for any student or licensure student who:
(1) Is incarcerated in a State or federal correctional facility for committing a Class A, B, B1, or B2 felony; or
(2) Is incarcerated in a State or federal correctional facility for committing a Class C through I felony and is not eligible for parole or release within 10 years."
SECTION 9.13.(g) G.S. 116‑22 is amended by adding a new subdivision to read:
"(1b) 'Licensure student' shall mean a person who:
a. Has a bachelors degree;
b. Is enrolled either full‑time or less than full‑time in a program intended to result in licensure in teaching or nursing;
c. Attends an institution located in the State; and
d. Qualifies as a resident of North Carolina in accordance with definitions of residency that may from time to time be adopted by the Board of Governors of The University of North Carolina and published in the residency manual of the Board."
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
CHANGE REPORTING DATE OF AGING STUDY COMMISSION
SECTION 10.1. The third paragraph of Section 10.40A.(p) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.40A.(p)
…
The Department shall submit a
progress report to the North Carolina Study Commission on Aging and to the
Senate Appropriations Committee on Health and Human Services and to the House
of Representatives Subcommittee on Health and Human Services on or before April
1, 2006.January 1, 2007.
…"
Rate Setting For Child Caring Institutions
SECTION 10.2.(a) Section 10.47(b) of S.L. 2005‑276 is repealed.
SECTION 10.2.(b) G.S. 110‑93.1 is repealed.
SECTION 10.2.(c) G.S. 143B‑153(2)d. reads as rewritten:
"§ 143B‑153. Social Services Commission – creation, powers and duties.
There is hereby created the Social Services Commission of the Department of Health and Human Services with the power and duty to adopt rules and regulations to be followed in the conduct of the State's social service programs with the power and duty to adopt, amend, and rescind rules and regulations under and not inconsistent with the laws of the State necessary to carry out the provisions and purposes of this Article. Provided, however, the Department of Health and Human Services shall have the power and duty to adopt rules and regulations to be followed in the conduct of the State's medical assistance program.
…
(2) The Social Services Commission shall have the power and duty to establish standards and adopt rules and regulations:
…
d. For the payment of State
funds to private child‑placing agencies as defined in G.S. 131D‑10.2(4)
and residential child care facilities as defined in G.S. 131D‑10.2(13)
for care and services provided to children who are in the custody or placement
responsibility of a county department of social services; andservices.
The Commission shall establish standardized rates for child caring institutions
in this State, which rates shall be updated annually on July 1. Rate‑setting
recommendations provided by the Office of the State Auditor shall be
incorporated into the Department of Social Services' rate‑setting
methodology; and
…
…."
SECTION 10.2.(d) The effective date for establishing standardized rates for child caring institutions in this State, as enacted in subsection (c) of this section, shall be July 1, 2007.
SECTION 10.3. Section 10.11 of S.L. 2005‑276 reads as rewritten:
"SECTION 10.11.(a) Use of Funds, Allocation of Costs, Other Authorizations.
(1) Use of Funds. – Funds appropriated in this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy.
(2) Allocation of Nonfederal Cost of Medicaid. – The State shall pay eighty‑five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section. In addition, the State shall pay eighty‑five percent (85%); the county shall pay fifteen percent (15%) of the federal Medicare Part D clawback payments under the Medicare Modernization Act of 2004.
(3) Funds for Development and Acquisition of Equipment and Software. – If first approved by the Office of State Budget and Management, the Division of Medical Assistance, Department of Health and Human Services, may use funds that are identified to support the cost of development and acquisition of equipment and software through contractual means to improve and enhance information systems that provide management information and claims processing. The Department of Health and Human Services shall identify adequate funds to support the implementation and first year's operational costs that exceed the currently allocated funds for the new contract for the fiscal agent for the Medicaid Management Information System.
(4) Reports. – Unless otherwise provided, whenever the Department of Health and Human Services is required by this section to report to the General Assembly, the report shall be submitted to the House of Representatives Appropriations Subcommittee for Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division of the Legislative Services Office. Reports shall be submitted on the date provided in the reporting requirement.
SECTION 10.11.(b) Policy. –
(1) Volume purchase plans and single source procurement. – The Department of Health and Human Services, Division of Medical Assistance, may, subject to the approval of a change in the State Medicaid Plan, contract for services, medical equipment, supplies, and appliances by implementation of volume purchase plans, single source procurement, or other contracting processes in order to improve cost containment.
(2) Cost‑containment programs. – The Department of Health and Human Services, Division of Medical Assistance, may undertake cost‑containment programs, including contracting for services, preadmissions to hospitals, and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.
(3) Fraud and abuse. –
a. The Division of Medical Assistance, Department of Health and Human Services, may provide incentives to counties that successfully recover fraudulently spent Medicaid funds by sharing State savings with counties responsible for the recovery of the fraudulently spent funds.
b. For the purposes of investigating and reducing client fraud and abuse, the Department of Health and Human Services, Division of Medical Assistance, shall, unless prohibited by federal law, include in the Medicaid enrollment process the requirement that the applicant for Medicaid consent to or authorize in writing the release of the applicant's medical records for the three years immediately preceding the application for Medicaid benefits. The Department shall obtain and use information from the applicant's medical records in a manner and form that complies with the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), P.L. 104‑191, as amended, and that protects the privacy of the information as required by other applicable federal or State law. In addition to fraud and abuse detection, the Department may require the applicant's consent for other purposes permitted by HIPAA and required or authorized by other applicable federal or State law.
(4) Medical policy. –
Unless required for compliance with federal law, the Department shall not change medical policy affecting the amount, sufficiency, duration, and scope of health care services and who may provide services until the Division of Medical Assistance has prepared a five‑year fiscal analysis documenting the increased cost of the proposed change in medical policy and submitted it for Departmental review. If the fiscal impact indicated by the fiscal analysis for any proposed medical policy change exceeds three million dollars ($3,000,000) in total requirements for a given fiscal year, then the Department shall submit the proposed policy change with the fiscal analysis to the Office of State Budget and Management and the Fiscal Research Division. The Department shall not implement any proposed medical policy change exceeding three million dollars ($3,000,000) in total requirements for a given fiscal year unless the source of State funding is identified and approved by the Office of State Budget and Management. The Department shall provide the Office of State Budget and Management and the Fiscal Research Division a quarterly report itemizing all medical policy changes with total requirements of less than three million dollars ($3,000,000).
SECTION 10.11.(c) Eligibility. – Eligibility for Medicaid shall be determined in accordance with the following:
(1) Medicaid and Work First Family Assistance, Income Eligibility Standards. – The maximum net family annual income eligibility standards for Medicaid and Work First Family Assistance and the Standard of Need for Work First Family Assistance shall be as follows:
Categorically Needy‑WFFA* Medically Needy
Family Standard Families and Children
Size Of Need Income
Level AA,AB,AD*
1 $4,344 $2,172 $2,900
2 5,664 2,832 3,900
3 6,528 3,264 4,400
4 7,128 3,564 4,800
5 7,776 3,888 5,200
6 8,376 4,188 5,600
7 8,952 4,476 6,000
8 9,256 4,680 6,300
*Work First Family Assistance (WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).
The payment level for Work First Family Assistance shall be fifty percent (50%) of the standard of need.
These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
(2) The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to all elderly, blind, and disabled people who have incomes equal to or less than one hundred percent (100%) of the federal poverty guidelines, as revised each April 1.
(3) The Department of Health and Human Services shall provide Medicaid to 19 and 20-year-olds in accordance with federal rules and regulations.
(4) Pregnant women and children. – The Department of Health and Human Services shall provide coverage to pregnant women and to children according to the following schedule:
a. Pregnant women with incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
b. Effective January 1, 2006, infants under the age of one with family incomes equal to or less than two hundred percent (200%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
c. Effective January 1, 2006, children aged one through five with family incomes equal to or less than two hundred percent (200%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
d. Children aged six through 18 with family incomes equal to or less than the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
e. The Department of Health and Human Services shall provide Medicaid coverage for adoptive children with special or rehabilitative needs regardless of the adoptive family's income.
Services to pregnant women eligible under this subsection continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy. In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children described in subdivisions (3) and (4) of this subsection, no resources test shall be applied.
(5) The Department of Health and Human Services shall provide Medicaid coverage for family planning services to men and women of childbearing age with family incomes equal to or less than one hundred eight‑five percent (185%) of the federal poverty level.
(6) ICF and ICF/MR Work Incentive Allowances. – The Department of Health and Human Services may provide an incentive allowance to Medicaid‑eligible recipients of ICF and ICF/MR services, who are regularly engaged in work activities as part of their developmental plan, and for whom retention of additional income contributes to their achievement of independence. The State funds required to match the federal funds that are required by these allowances shall be provided from savings within the Medicaid budget or from other unbudgeted funds available to the Department. The incentive allowances may be as follows:
Monthly Net Wages Monthly Incentive Allowance
$1.00 to $100.99 Up to $50.00
$101.00 to $200.99 $80.00
$201.00 to $300.99 $130.00
$301.00 and greater $212.00
(7) Medicaid enrollment of categorically needy families with children shall be continuous for one year without regard to changes in income or assets.
(8) For all Medicaid eligibility classifications for which the federal poverty level is used as an income limit for eligibility determination, the income limits will be updated each April 1 immediately following publication of federal poverty guidelines.
(9) When implementing the Supplemental Security Income (SSI) method for considering equity value of income producing property, the Department shall, to the maximum extent possible, employ procedures to mitigate the hardship to Medicaid enrollees occurring from application of the SSI method.
SECTION 10.11.(d) Services and Payment Bases. – Funds appropriated for Medicaid services shall be expended in accordance with the following schedule of services and payment bases. All services and payments are subject to the language at the end of this subsection. This subsection is divided into services that are mandated by federal law, and those that are optional under federal law. Unless otherwise provided, services and payment bases will be as prescribed in the State Plan as established by the Department of Health and Human Services and may be changed with the approval of the Director of the Budget.
Services and payment bases – Mandatory
(1) Hospital inpatient.
(2) Hospital outpatient. – Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Health and Human Services.
(3) Nursing facilities. – Nursing facilities providing services to Medicaid recipients who also qualify for Medicare must be enrolled in the Medicare program as a condition of participation in the Medicaid program. State facilities are not subject to the requirement to enroll in the Medicare program. Residents of nursing facilities who are eligible for Medicare coverage of nursing facility services must be placed in a Medicare‑certified bed. Medicaid shall cover facility services only after the appropriate services have been billed to Medicare. The Division of Medical Assistance shall allow nursing facility providers sufficient time from the effective date of this act to certify additional Medicare beds if necessary. In determining the date that the requirements of this subdivision become effective, the Division of Medical Assistance shall consider the regulations governing certification of Medicare beds and the length of time required for this process to be completed.
(4) Physicians, certified nurse midwife services, nurse practitioners. – Fee schedules as development by the Department of Health and Human Services.
(5) Community Alternative Program, EPSDT Screens. – Payments in accordance with rate schedule developed by the Department of Health and Human Services.
(6) Home health and related services, durable medical equipment. – Payments according to reimbursement plans developed by the Department of Health and Human Services.
(7) Hearing aids. – Wholesale cost plus dispensing fee to provider.
(8) Rural health clinical services. – Provider‑based, reasonable cost; non‑provider‑based, single–cost reimbursement rate per clinic visit.
(9) Family planning. – Negotiated rate for local health departments. For other providers see specific services, e.g. hospitals, physicians.
(10) Independent laboratory and X‑ray services. – Uniform fee schedules as developed by the Department of Health and Human Services.
(11) Ambulatory surgical centers.
Services and payment bases – Optional
(12) Private duty nursing, clinic services, prepaid health plans.
(13) Intermediate care facilities for the mentally retarded.
(14) Chiropractors, podiatrists, optometrists, dentists.
(15) Limitations on Dental Coverage. – Dental services shall be provided on a restricted basis in accordance with criteria adopted by the Department to implement this subsection.
(16) Medicare Buy‑In. – Social Security Administration premium.
(17) Ambulance services. – Uniform fee schedules as developed by the Department of Health and Human Services. Public ambulance providers will be reimbursed at cost.
(18) Optical supplies. – Payment for materials is made to a contractor in accordance with 42 C.F.R. § 431.54(d). Fees paid to dispensing providers are negotiated fees established by the State agency based on industry charges.
(19) Medicare crossover claims. – The Department shall apply Medicaid medical policy to Medicare claims for dually eligible recipients. The Department shall pay an amount up to the actual coinsurance or deductible or both, in accordance with the State Plan, as approved by the Department of Health and Human Services.
(20) Physical therapy and speech therapy. – Services limited to EPSDT‑eligible children. Payments are to be made only to qualified providers at rates negotiated by the Department of Health and Human Services. Physical therapy (including occupational therapy) and speech therapy services are subject to prior approval and utilization review.
(21) Personal care services.
(22) Case management services. – Reimbursement in accordance with the availability of funds to be transferred within the Department of Health and Human Services.
(23) Hospice.
(24) Medically necessary prosthetics or orthotics. – In order to be eligible for reimbursement, providers must be Board certified. Medically necessary prosthetics and orthotics are subject to prior approval and utilization review.
(25) Health insurance premiums.
(26) Medical care/other remedial care. – Services not covered elsewhere in this section include related services in schools; health professional services provided outside the clinic setting to meet maternal and infant health goals; and services to meet federal EPSDT mandates.
(27) Pregnancy‑related services. – Covered services for pregnant women shall include nutritional counseling, psychosocial counseling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses.
(28) Drugs. – Reimbursements. Reimbursements shall be available for prescription drugs as allowed by federal regulations plus a professional services fee per month, excluding refills for the same drug or generic equivalent during the same month. Payments for drugs are subject to the provisions of this subdivision or in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. Payment of the professional services fee shall be made in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. The professional services fee shall be five dollars and sixty cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per prescription for brand‑name drugs. Adjustments to the professional services fee shall be established by the General Assembly. In addition to the professional services fee, the Department may pay an enhanced fee for pharmacy services.
Limitations on quantity. – The Department of Health and Human Services may establish authorizations, limitations, and reviews for specific drugs, drug classes, brands, or quantities in order to manage effectively the Medicaid pharmacy program, except that the Department shall not impose limitations on brand‑name medications for which there is a generic equivalent in cases where the prescriber has determined, at the time the drug is prescribed, that the brand‑name drug is medically necessary and has written on the prescription order the phrase "medically necessary". In addition to the entities listed in subsection (a) of this section, the Department shall report to the Joint Legislative Commission on Governmental Operations on authorizations, limitations, and reviews established under this subparagraph, including limitations on monthly brand‑name and generic prescriptions as well as restrictions on the total number of medications. The Department shall submit the report not later than May 1, 2006.
Dispensing of generic drugs. – Notwithstanding G.S. 90‑85.27 through G.S. 90‑85.31, or any other law to the contrary, under the Medical Assistance Program (Title XIX of the Social Security Act), and except as otherwise provided in this subsection for atypical antipsychotic drugs and drugs listed in the narrow therapeutic index, a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber has determined, at the time the drug is prescribed, that the brand‑name drug is medically necessary and has written on the prescription order the phrase "medically necessary". An initial prescription order for an atypical antipsychotic drug or a drug listed in the narrow therapeutic drug index that does not contain the phrase "medically necessary" shall be considered an order for the drug by its established or generic name, except that a pharmacy shall not substitute a generic or established name prescription drug for subsequent brand or trade name prescription orders of the same prescription drug without explicit oral or written approval of the prescriber given at the time the order is filled. Generic drugs shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand‑name drugs. As used in this subsection, "brand name" means the proprietary name the manufacturer places upon a drug product or on its container, label, or wrapping at the time of packaging; and "established name" has the same meaning as in section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act as amended, 21 U.S.C. § 352(e)(3).
Prior authorization. – The Department of Health and Human Services shall not impose prior authorization requirements or other restrictions under the State Medical Assistance Program on medications prescribed for Medicaid recipients for the treatment of: (i) mental illness, including, but not limited to, medications for schizophrenia, bipolar disorder, and major depressive disorder, or (ii) HIV/AIDS.
(29) Other mental health services. – Unless otherwise covered by this section, coverage is limited to:
a. Services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) when provided in agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services and reimbursement is made in accordance with a State Plan developed by the Department of Health and Human Services not to exceed the upper limits established in federal regulations, and
b. For children eligible for EPSDT services provided by:
1. Licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, certified clinical addictions specialists, and certified clinical supervisors, when Medicaid‑eligible children are referred by the Community Care of North Carolina primary care physician, a Medicaid‑enrolled psychiatrist, or the area mental health program or local management entity, and
2. Institutional providers of residential services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) for children and Psychiatric Residential Treatment Facility services that meet federal and State requirements as defined by the Department.
c. For Medicaid‑eligible adults, services provided by licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, and nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, licensed clinical addictions specialists, and licensed clinical supervisors, Medicaid‑eligible adults may be self‑referred.
d. Payments made for services rendered in accordance with this subdivision shall be to qualified providers in accordance with approved policies and the State Plan. Nothing in sub‑subdivision b. or c. of this subdivision shall be interpreted to modify the scope of practice of any service provider, practitioner, or licensee, nor to modify or attenuate any collaboration or supervision requirement related to the professional activities of any service provider, practitioner, or licensee. Nothing in sub‑subdivision b. or c. of this subdivision shall be interpreted to require any private health insurer or health plan to make direct third‑party reimbursements or payments to any service provider, practitioner, or licensee.
e. The Department of Health and Human Services shall not enroll licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, licensed clinical addiction specialists, and licensed clinical supervisors until all of the following conditions have been met:
1. The fiscal impact of payments to these qualified providers has been projected;
2. Funding for any projected requirements in excess of budgeted Division of Medical Assistance funding has been identified from within State funds appropriated to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to support area mental health programs or county programs, or identified from other sources; and
3. Approval has been obtained from the Office of State Budget and Management to transfer these State or other source funds from the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to the Division of Medical Assistance. Upon approval and implementation, the Department of Health and Human Services shall, on a quarterly basis, provide a status report to the Office of State Budget and Management and the Fiscal Research Division.
Notwithstanding G.S. 150B‑21.1(a), the Department of Health and Human Services may adopt temporary rules in accordance with Chapter 150B of the General Statutes further defining the qualifications of providers and referral procedures in order to implement this subdivision. Coverage policy for services defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services under sub‑subdivisions a. and b.2 of this subdivision shall be established by the Division of Medical Assistance.
SECTION 10.11.(e) Limitations on payments. –
(1) Payment is limited to Medicaid‑enrolled providers that purchase a performance bond in an amount not to exceed one hundred thousand dollars ($100,000) naming as beneficiary the Department of Health and Human Services, Division of Medical Assistance, or provide to the Department a validly executed letter of credit or other financial instrument issued by a financial institution or agency honoring a demand for payment in an equivalent amount. The Department may waive or limit the requirements of this paragraph for one or more classes of Medicaid‑enrolled providers based on the provider's dollar amount of monthly billings to Medicaid or the length of time the provider has been licensed in this State to provide services. In waiving or limiting requirements of this paragraph, the Department shall take into consideration the potential fiscal impact of the waiver or limitation on the State Medicaid Program. The Department may adopt temporary rules in accordance with G.S. 150B‑21.1 as necessary to implement this provision.
(2) Reimbursement is available and may be limited in accordance with federal EPSDT requirements to any one or combination of the following: physicians, clinics, hospital outpatient, optometrists, chiropractors, and podiatrists. Prenatal services, all EPSDT children, emergency rooms, and mental health services subject to independent utilization review are exempt from the visit limitations contained in this paragraph. Exceptions may be authorized by the Department of Health and Human Services where the life of the patient would be threatened without such additional care.
SECTION 10.11.(f) Exceptions and limitations on services; authorization of co‑payments and other services.
(1) Exceptions to Service Limitations, Eligibility Requirements, and Payments. – Service limitations, eligibility requirements, and payments bases in this section may be waived by the Department of Health and Human Services, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans, contracting for services, managed care plans, or community‑based services programs in accordance with plans approved by the United States Department of Health and Human Services or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient. The Department of Health and Human Services may proceed with planning and development work on the Program of All‑Inclusive Care for the Elderly.
(2) Co‑Payment for Medicaid Services. – The Department of Health and Human Services may establish co‑payments up to the maximum permitted by federal law and regulation and required by this subsection in order to achieve reductions in the budget in fiscal years 2005‑2006 and 2006‑2007.
(3) The Department of Health and Human Services shall provide Medicaid coverage for family planning services to men and women of childbearing age with family incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty level. Of the funds appropriated in this act to the Division of Medical Assistance, the sum of seven hundred fifty thousand dollars ($750,000) for the 2005‑2006 fiscal year shall be used to provide the State‑match for the family planning demonstration waiver approved by the federal government.
SECTION 10.11.(g) Rules, Reports, and Other Matters. –
(1) Rules. – The Department of Health and Human Services may adopt temporary or emergency rules according to the procedures established in G.S. 150B‑21.1 and G.S. 150B‑21.1A when it finds that these rules are necessary to maximize receipt of federal funds within existing State appropriations, to reduce Medicaid expenditures, and to reduce fraud and abuse. Prior to the filing of these temporary or emergency rules with the Rules Review Commission and the Office of Administrative Hearings, the Department shall consult with the Office of State Budget and Management on the possible fiscal impact of the temporary or emergency rule and its effect on State appropriations and local governments.
(2) Changes to Medicaid program; reports. – The Department shall report on any change it anticipates making in the Medicaid program that impacts the type or level of service, reimbursement methods, or waivers, any of which require a change in the State Plan or other approval by the Centers for Medicare and Medicaid Services (CMS). The reports shall be provided at the same time they are submitted to CMS for approval. In addition to the entities listed in subsection (a)(4) of this section, the report shall be submitted to the Joint Legislative Health Care Oversight Committee."
SECTION 10.11.(a)
Funds appropriated in this act for services provided in accordance with Title
XIX of the Social Security Act (Medicaid) are for both the categorically needy
and the medically needy. Funds appropriated for these services shall be
expended in accordance with the following schedule of services and payment
bases. All services and payments are subject ot the language at the end of
this subsection.
Services and payment bases:
(1) Hospital
inpatient. – Payment for hospital inpatient services will be prescribed in the
State Plan as established by the Department of Health and Human Services.
(2) Hospital
outpatient. – Eighty percent (80%) of allowable costs or a prospective
reimbursement plan as established by the Department of Health and Human
Services.
(3) Nursing
facilities. – Payment for nursing facility services will be prescribed in the State
Plan as established by the Department of Health and Human Services. Nursing
facilities providing services to Medicaid recipients who also qualify for
Medicare must be enrolled in the Medicare program as a condition of
participation in the Medicaid program. State facilities are not subject to the
requirement to enroll in the Medicare program. Residents of nursing facilities
who are eligible for Medicare coverage of nursing facility services must be
placed in a Medicare‑certified bed. Medicaid shall cover facility
services only after the appropriate services have been billed to Medicare. The
Division of Medical Assistance shall allow nursing facility providers
sufficient time from the effective date of this act to certify additional
Medicare beds if necessary. In determining the date that the requirements of
this subdivision become effective, the Division of Medical Assistance shall
consider the regulations governing certification of Medicare beds and the
length of time required for this process to be completed.
(4) Intermediate
care facilities for the mentally retarded. – As prescribed in the State Plan as
established by the Department of Health and Human Services.
(5) Drugs. –
Reimbursements. Reimbursements shall be available for prescription drugs as allowed
by federal regulations plus a professional services fee per month, excluding
refills for the same drug or generic equivalent during the same month. Payments
for drugs are subject to the provisions of this subdivision or in accordance
with the State Plan adopted by the Department of Health and Human Services,
consistent with federal reimbursement regulations. Payment of the professional
services fee shall be made in accordance with the State Plan adopted by the
Department of Health and Human Services, consistent with federal reimbursement
regulations. The professional services fee shall be five dollars and sixty
cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per
prescription for brand‑name drugs. Adjustments to the professional
services fee shall be established by the General Assembly. In addition to the
professional services fee, the Department may pay an enhanced fee for pharmacy
services.
Limitations on
quantity. – The Department of Health and Human Services may establish authorizations,
limitations, and reviews for specific drugs, drug classes, brands, or
quantities in order to manage effectively the Medicaid pharmacy program, except
that the Department shall not impose limitations on brand‑name
medications for which there is a generic equivalent in cases where the
prescriber has determined, at the time the drug is prescribed, that the brand‑name
drug is medically necessary and has written on the prescription order the
phrase "medically necessary". The Department
shall report to the Joint Legislative Commission on Governmental Operations,
the Senate Appropriations Committee on Health and Human Services, the House of
Representatives Appropriations Subcommittee on Health and Human Services, and
the Fiscal Research Division on authorizations, limitations, and reviews
established under this subparagraph, including limitations on monthly brand‑name
and generic prescriptions as well as restrictions on the total number of
medications. The Department shall submit the report not later than May 1, 2006.
Dispensing of
generic drugs. – Notwithstanding G.S. 90‑85.27 through G.S. 90‑85.31,
or any other law to the contrary, under the Medical Assistance Program (Title
XIX of the Social Security Act), and except as otherwise provided in this subsection
for atypical antipsychotic drugs and drugs listed in the narrow therapeutic
index, a prescription order for a drug designated by a trade or brand name
shall be considered to be an order for the drug by its established or generic
name, except when the prescriber has determined, at the time the drug is
prescribed, that the brand‑name drug is medically necessary and has
written on the prescription order the phrase "medically necessary".
An initial prescription order for an atypical antipsychotic drug or a drug
listed in the narrow therapeutic drug index that does not contain the phrase "medically
necessary" shall be considered an order for the drug by its established or
generic name, except that a pharmacy shall not substitute a generic or
established name prescription drug for subsequent brand or trade name
prescription orders of the same prescription drug without explicit oral or
written approval of the prescriber given at the time the order is filled.
Generic drugs shall be dispensed at a lower cost to the Medical Assistance
Program rather than trade or brand‑name drugs. As used in this
subsection, "brand name" means the proprietary name the manufacturer
places upon a drug product or on its container, label, or wrapping at the time
of packaging; and "established name" has the same meaning as in
section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act as amended, 21
U.S.C. § 352(e)(3).
(6) Physicians,
chiropractors, podiatrists, optometrists, dentists, certified nurse midwife
services, nurse practitioners. – Fee schedules as developed by the Department
of Health and Human Services. Payments for dental services are subject to the
provisions of subsection (g) of this section.
(7) Community
Alternative Program, EPSDT screens. – Payment to be made in accordance with the
rate schedule developed by the Department of Health and Human Services.
(8) Home health and
related services, private duty nursing, clinic services, prepaid health plans,
durable medical equipment. – Payment to be made according to reimbursement
plans developed by the Department of Health and Human Services.
(9) Medicare Buy‑In.
– Social Security Administration premium.
(10) Ambulance
services. – Uniform fee schedules as developed by the Department of Health and
Human Services. Public ambulance providers will be reimbursed at cost.
(11) Hearing aids. –
Wholesale cost plus a dispensing fee to the provider.
(12) Rural health
clinic services. – Provider‑based, reasonable cost; nonprovider‑based,
single‑cost reimbursement rate per clinic visit.
(13) Family planning.
– Negotiated rate for local health departments. For other providers, see
specific services, for instance, hospitals, physicians.
(14) Independent
laboratory and X‑ray services. – Uniform fee schedules as developed by
the Department of Health and Human Services.
(15) Optical
supplies. – Payment for materials is made to a contractor in accordance with 42
C.F.R. § 431.54(d). Fees paid to dispensing providers are negotiated fees
established by the State agency based on industry charges.
(16) Ambulatory
surgical centers. – Payment as prescribed in the reimbursement plan established
by the Department of Health and Human Services.
(17) Medicare
crossover claims. – By not later than October 1, 2005, the Department shall
apply Medicaid medical policy to Medicare claims for dually eligible
recipients. The Department shall pay an amount up to the actual coinsurance or
deductible or both, in accordance with the State Plan, as approved by the
Department of Health and Human Services.
(18) Physical therapy
and speech therapy. – Services limited to EPSDT‑eligible children.
Payments are to be made only to qualified providers at rates negotiated by the
Department of Health and Human Services. Physical therapy (including
occupational therapy) and speech therapy services are subject to prior approval
and utilization review.
(19) Personal care
services. – Payment in accordance with the State Plan approved by the
Department of Health and Human Services.
(20) Case management
services. – Reimbursement in accordance with the availability of funds to be
transferred within the Department of Health and Human Services.
(21) Hospice. –
Services may be provided in accordance with the State Plan developed by the
Department of Health and Human Services.
(22) Other mental
health services. – Unless otherwise covered by this section, coverage is
limited to:
a. Services as
defined by the Division of Mental Health, Developmental Disabilities, and
Substance Abuse Services and approved by the Centers for Medicare and Medicaid
Services (CMS) when provided in agencies meeting the requirements of the rules
established by the Commission for Mental Health, Developmental Disabilities,
and Substance Abuse Services and reimbursement is made in accordance with a
State Plan developed by the Department of Health and Human Services not to
exceed the upper limits established in federal regulations, and
b. For children
eligible for EPSDT services provided by:
1. Licensed or
certified psychologists, licensed clinical social workers, certified clinical
nurse specialists in psychiatric mental health advanced practice, nurse
practitioners certified as clinical nurse specialists in psychiatric mental
health advanced practice, licensed psychological associates, licensed
professional counselors, licensed marriage and family therapists, certified
clinical addictions specialists, and certified clinical supervisors, when
Medicaid‑eligible children are referred by the Community Care of North
Carolina primary care physician, a Medicaid‑enrolled psychiatrist, or the
area mental health program or local management entity, and
2. Institutional
providers of residential services as defined by the Division of Mental Health,
Developmental Disabilities, and Substance Abuse Services and approved by the
Centers for Medicare and Medicaid Services (CMS) for children and Psychiatric
Residential Treatment Facility services that meet federal and State
requirements as defined by the Department.
c. For Medicaid‑eligible
adults, services provided by licensed or certified psychologists, licensed
clinical social workers, certified clinical nurse specialists in psychiatric
mental health advanced practice, and nurse practitioners certified as clinical
nurse specialists in psychiatric mental health advanced practice, licensed
psychological associates, licensed professional counselors, licensed marriage
and family therapists, certified clinical addictions specialists, and certified
clinical supervisors, Medicaid‑eligible adults may be self‑referred.
d. Payments made
for services rendered in accordance with this subdivision shall be to qualified
providers in accordance with approved policies and the State Plan. Nothing in
sub‑subdivision b. or c. of this subdivision shall be interpreted to
modify the scope of practice of any service provider, practitioner, or
licensee, nor to modify or attenuate any collaboration or supervision
requirement related to the professional activities of any service provider,
practitioner, or licensee. Nothing in sub‑subdivision b. or c. of this
subdivision shall be interpreted to require any private health insurer or
health plan to make direct third‑party reimbursements or payments to any
service provider, practitioner, or licensee.
e. The Department
of Health and Human Services shall not enroll licensed psychological
associates, licensed professional counselors, licensed marriage and family
therapists, certified clinical addiction specialists, and certified clinical
supervisors until all of the following conditions have been met:
1. The fiscal
impact of payments to these qualified providers has been projected;
2. Funding for
any projected requirements in excess of budgeted Division of Medical Assistance
funding has been identified from within State funds appropriated to the
Department of Health and Human Services, Division of Mental Health,
Developmental Disabilities, and Substance Abuse Services to support area mental
health programs or county programs, or identified from other sources; and
3. Approval has
been obtained from the Office of State Budget and Management to transfer these
State or other source funds from the Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services to the Division of Medical
Assistance. Upon approval and implementation, the Department of Health and
Human Services shall, on a quarterly basis, provide a status report to the
Office of State Budget and Management and the Fiscal Research Division.
Notwithstanding G.S. 150B‑21.1(a),
the Department of Health and Human Services may adopt temporary rules in
accordance with Chapter 150B of the General Statutes further defining the
qualifications of providers and referral procedures in order to implement this
subdivision. Coverage policy for services defined by the Division of Mental
Health, Developmental Disabilities, and Substance Abuse Services under sub‑subdivisions
a. and b.2 of this subdivision shall be established by the Division of Medical
Assistance.
(23) Medically
necessary prosthetics or orthotics. – Reimbursement in accordance with the
State Plan approved by the Department of Health and Human Services, except that
in order to be eligible for reimbursement, providers must be Board certified
not later than July 1, 2005. Medically necessary prosthetics and orthotics are
subject to prior approval and utilization review.
(24) Health insurance
premiums. – Payments to be made in accordance with the State Plan adopted by
the Department of Health and Human Services consistent with federal
regulations.
(25) Medical
care/other remedial care. – Services not covered elsewhere in this section
include related services in schools; health professional services provided
outside the clinic setting to meet maternal and infant health goals; and
services to meet federal EPSDT mandates. Services addressed by this subdivision
are limited to those prescribed in the State Plan as established by the
Department of Health and Human Services.
(26) Pregnancy‑related
services. – Covered services for pregnant women shall include nutritional
counseling, psychosocial counseling, and predelivery and postpartum home visits
by maternity care coordinators and public health nurses.
Services and payment bases may be
changed with the approval of the Director of the Budget.
Payment is limited to Medicaid‑enrolled
providers that purchase a performance bond in an amount not to exceed one
hundred thousand dollars ($100,000) naming as beneficiary the Department of
Health and Human Services, Division of Medical Assistance, or provide to the
Department a validly executed letter of credit or other financial instrument
issued by a financial institution or agency honoring a demand for payment in an
equivalent amount. The Department may waive or limit the requirements of this
paragraph for one or more classes of Medicaid‑enrolled providers based on
the provider's dollar amount of monthly billings to Medicaid or the length of
time the provider has been licensed in this State to provide services. In
waiving or limiting requirements of this paragraph, the Department shall take
into consideration the potential fiscal impact of the waiver or limitation on
the State Medicaid Program. The Department may adopt temporary rules in
accordance with G.S. 150B‑21.1 as necessary to implement this
provision.
Reimbursement is available for
up to 24 visits per recipient per year to any one or combination of the
following: physicians, clinics, hospital outpatient, optometrists,
chiropractors, and podiatrists. Prenatal services, all EPSDT children,
emergency rooms, and mental health services subject to independent utilization
review are exempt from the visit limitations contained in this paragraph.
Exceptions may be authorized by the Department of Health and Human Services
where the life of the patient would be threatened without such additional care.
SECTION 10.11.(b)
Allocation of Nonfederal Cost of Medicaid. – The State shall pay eighty‑five
percent (85%); the county shall pay fifteen percent (15%) of the nonfederal
costs of all applicable services listed in this section. In addition,
the State shall pay eighty‑five percent (85%); the county shall pay
fifteen percent (15%) of the federal Medicare Part D clawback payments under
the Medicare Modernization Act of 2004.
SECTION 10.11.(c)
Co‑Payment for Medicaid Services. – The Department of Health and Human
Services may establish co‑payments up to the maximum permitted by federal
law and regulation and required by this subsection in order to achieve
reductions in the budget in fiscal years 2005‑2006
and 2006‑2007.
SECTION 10.11.(d)
Medicaid and Work First Family Assistance, Income Eligibility Standards. – The
maximum net family annual income eligibility standards for Medicaid and Work
First Family Assistance and the Standard of Need for Work First Family
Assistance shall be as follows:
Categorically
Needy Medically Needy
WFFA*
Family Standard Families
and
Size of
Need Children Income
Level AA,
AB, AD*
1 $4,344 $2,172 $2,900
2 5,664 2,832 3,800
3 6,528 3,264 4,400
4 7,128 3,564 4,800
5 7,776 3,888 5,200
6 8,376 4,188 5,600
7 8,952 4,476 6,000
8 9,256 4,680 6,300
*Work First Family Assistance
(WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled
(AD).
The payment level for Work First
Family Assistance shall be fifty percent (50%) of the standard of need.
These standards may be changed
with the approval of the Director of the Budget with the advice of the Advisory
Budget Commission.
SECTION 10.11.(e)
The Department of Health and Human Services, Division of Medical Assistance,
shall provide Medicaid coverage to all elderly, blind, and disabled people who
have incomes equal to or less than one hundred percent (100%) of the federal
poverty guidelines, as revised each April 1. This subsection expires
December 31, 2005.
SECTION 10.11.(f)
ICF and ICF/MR Work Incentive Allowances. – The Department of Health and Human
Services may provide an incentive allowance to Medicaid‑eligible
recipients of ICF and ICF/MR facilities who are regularly engaged in work
activities as part of their developmental plan and for whom retention of
additional income contributes to their achievement of independence. The State
funds required to match the federal funds that are required by these allowances
shall be provided from savings within the Medicaid budget or from other
unbudgeted funds available to the Department. The incentive allowances may be
as follows:
Monthly Net Wages Monthly
Incentive Allowance
$1.00 to $100.99 Up
to $50.00
$101.00 to $200.99 $80.00
$201.00 to $300.99 $130.00
SECTION 10.11.(g)
Dental Coverage Limits. – Dental services shall be provided on a restricted
basis in accordance with rules adopted by the Department to implement this
subsection.
SECTION 10.11.(h)
Exceptions to Service Limitations, Eligibility Requirements, and Payments. –
Service limitations, eligibility requirements, and payments bases in this
section may be waived by the Department of Health and Human Services, with the
approval of the Director of the Budget, to allow the Department to carry out
pilot programs for prepaid health plans, contracting for services, managed care
plans, or community‑based services programs in accordance with plans
approved by the United States Department of Health and Human Services or when
the Department determines that such a waiver will result in a reduction in the
total Medicaid costs for the recipient. The Department of Health and Human
Services may proceed with planning and development work on the Program of All‑Inclusive
Care for the Elderly.
SECTION 10.11.(i)
Volume Purchase Plans and Single Source Procurement. – The Department of Health
and Human Services, Division of Medical Assistance, may, subject to the
approval of a change in the State Medicaid Plan, contract for services, medical
equipment, supplies, and appliances by implementation of volume purchase plans,
single source procurement, or other contracting processes in order to improve
cost containment.
SECTION 10.11.(j)
Cost‑Containment Programs. – The Department of Health and Human Services,
Division of Medical Assistance, may undertake cost‑containment programs,
including contracting for services, preadmissions to hospitals, and prior
approval for certain outpatient surgeries before they may be performed in an
inpatient setting.
SECTION 10.11.(k)
For all Medicaid eligibility classifications for which the federal poverty
level is used as an income limit for eligibility determination, the income
limits will be updated each April 1 immediately following publication of
federal poverty guidelines.
SECTION 10.11.(l)
The Department of Health and Human Services shall provide Medicaid to 19‑,
20‑, and 21‑year‑olds in accordance with federal rules and
regulations.
SECTION 10.11.(m)
The Department of Health and Human Services shall provide coverage to pregnant
women and to children according to the following schedule:
(1) Pregnant women
with incomes equal to or less than one hundred eighty‑five percent (185%)
of the federal poverty guidelines as revised each April 1 shall be covered for
Medicaid benefits.
(2) Effective until
January 1, 2006, infants under the age of one with family incomes equal to or
less than one hundred eighty‑five percent (185%) of the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
Effective January 1, 2006, infants under the age of one with family incomes
equal to or less than two hundred percent (200%) of the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
(3) Effective until
January 1, 2006, children aged one through five with family incomes equal to or
less than one hundred thirty‑three percent (133%) of the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
Effective January 1, 2006, children aged one through five with family incomes
equal to or less than two hundred percent (200%) of the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
(4) Children aged
six through 18 with family incomes equal to or less than the federal poverty
guidelines as revised each April 1 shall be covered for Medicaid benefits.
(5) The Department
of Health and Human Services shall provide Medicaid coverage for adoptive
children with special or rehabilitative needs regardless of the adoptive family's
income.
Services to pregnant women
eligible under this subsection continue throughout the pregnancy but include
only those related to pregnancy and to those other conditions determined by the
Department as conditions that may complicate pregnancy. In order to reduce
county administrative costs and to expedite the provision of medical services
to pregnant women, to infants, and to children described in subdivisions (3)
and (4) of this subsection, no resources test shall be applied.
SECTION 10.11.(o)
The Division of Medical Assistance, Department of Health and Human Services,
may provide incentives to counties that successfully recover fraudulently spent
Medicaid funds by sharing State savings with counties responsible for the
recovery of the fraudulently spent funds.
SECTION 10.11.(p)
If first approved by the Office of State Budget and Management, the Division
of Medical Assistance, Department of Health and Human Services, may use funds
that are identified to support the cost of development and acquisition of
equipment and software through contractual means to improve and enhance
information systems that provide management information and claims processing.
The Department of Health and Human Services shall identify adequate funds to
support the implementation and first year's operational costs that exceed the
currently allocated funds for the new contract for the fiscal agent for the
Medicaid Management Information System.
SECTION
10.11.(q) The Department of Health and Human Services may adopt
temporary or emergency rules according to the procedures established in G.S. 150B‑21.1
and G.S. 150B‑21.1A when it finds that these rules are necessary to
maximize receipt of federal funds within existing State appropriations, to
reduce Medicaid expenditures, and to reduce fraud and abuse. Prior to the
filing of these temporary or emergency rules with the Rules Review Commission
and the Office of Administrative Hearings, the Department shall consult with
the Office of State Budget and Management on the possible fiscal impact of the
temporary or emergency rule and its effect on State appropriations and local
governments.
SECTION 10.11.(r)
The Department shall report to the Fiscal Research Division of the Legislative
Services Office and to the House of Representatives Appropriations Subcommittee
on Health and Human Services and the Senate Appropriations Committee on Health
and Human Services or the Joint Legislative Health Care Oversight Committee on
any change it anticipates making in the Medicaid program that impacts the type
or level of service, reimbursement methods, or waivers, any of which require a
change in the State Plan or other approval by the Centers for Medicare and
Medicaid Services (CMS). The reports shall be provided at the same time they
are submitted to CMS for approval.
SECTION
10.11.(s) The Department of Health and Human Services shall provide
Medicaid coverage for family planning services to men and women of childbearing
age with family incomes equal to or less than one hundred eighty‑five
percent (185%) of the federal poverty level. Of the funds
appropriated in this act to the Division of Medical Assistance, the sum of
seven hundred fifty thousand dollars ($750,000) for the 2005‑2006 fiscal
year shall be used to provide the State‑match for the family planning
demonstration waiver approved by the federal government.
SECTION 10.11.(t)
For the purposes of determining eligibility for Medical Assistance, the
Department of Health and Human Services may apply federal transfer of assets
policies, as described in Title XIX, section 1917(c) of the Social Security
Act, including the attachment of liens, to (i) life estates purchased by or on
behalf of the recipient, other than life estates excluded from countable
resources under this section, and (ii) to real property excluded as "income
producing", tenancy‑in‑common, or as nonhomesite property made
"income producing" under Title XIX, section 1902(r)(2) of the Social
Security Act. The transfer of assets policy shall apply only to an
institutionalized individual or the individual's spouse as defined in Title
XIX, section 1917(c) of the Social Security Act. The Department shall exclude
from countable resources any life estate in real property that is in the
recipient's home, is measured by the recipient's life, and is the result of the
transfer of a remainder interest.
Federal transfer of assets
policies applied to "income producing" real property under Title XIX,
section 1902(r)(2) of the Social Security Act shall become effective not
earlier than October 1, 2001. Federal transfer of assets policies and
attachment of liens applied to real property excluded as tenancy‑in‑common,
or as nonhomesite property made "income producing" in accordance with
this subsection shall become effective not earlier than November 1, 2002.
Federal transfer of assets policies applied to life estates in accordance with
this subsection shall become effective not earlier than October 1, 2005.
SECTION 10.11.(u)
When implementing the Supplemental Security Income (SSI) method for considering
equity value of income producing property, the Department shall, to the maximum
extent possible, employ procedures to mitigate the hardship to Medicaid
enrollees occurring from application of the Supplemental Security Income (SSI)
method.
SECTION
10.11.(v) Unless required for compliance with federal law, the
Department shall not change medical policy affecting the amount, sufficiency,
duration, and scope of health care services and who may provide services until
the Division of Medical Assistance has prepared a five‑year fiscal
analysis documenting the increased cost of the proposed change in medical
policy and submitted it for Departmental review. If the fiscal impact indicated
by the fiscal analysis for any proposed medical policy change exceeds three
million dollars ($3,000,000) in total requirements for a given fiscal year,
then the Department shall submit the proposed policy change with the fiscal
analysis to the Office of State Budget and Management and the Fiscal Research
Division. The Department shall not implement any proposed medical policy change
exceeding three million dollars ($3,000,000) in total requirements for a given
fiscal year unless the source of State funding is identified and approved by
the Office of State Budget and Management. The Department shall provide the
Office of State Budget and Management and the Fiscal Research Division a
quarterly report itemizing all medical policy changes with total requirements
of less than three million dollars ($3,000,000).
SECTION 10.11.(w)
The Department shall develop, amend, and adopt medical coverage policy in
accordance with the following:
(1) During the
development of new medical coverage policy or amendment to existing medical
coverage policy, consult with and seek the advice of the Physician Advisory
Group of the North Carolina Medical Society and other organizations the
Secretary deems appropriate. The Secretary shall also consult with and seek the
advice of officials of the professional societies or associations representing
providers who are affected by the new medical coverage policy or amendments to
existing medical coverage policy.
(2) At least 45
days prior to the adoption of new or amended medical coverage policy, the
Department shall:
a. Publish the
proposed new or amended medical coverage policy on the Department's Web site;
b. Notify all
Medicaid providers of the proposed, new, or amended policy; and
c. Upon request,
provide persons copies of the proposed medical coverage policy.
(3) During the 45‑day
period immediately following publication of the proposed new or amended medical
coverage policy, accept oral and written comments on the proposed new or
amended policy.
(4) If, following
the comment period, the proposed new or amended medical coverage policy is
modified, then the Department shall, at least 15 days prior to its adoption:
a. Notify all
Medicaid providers of the proposed policy;
b. Upon request,
provide persons notice of amendments to the proposed policy; and
c. Accept
additional oral or written comments during this 15‑day period.
SECTION 10.11.(x)
For the purposes of investigating and reducing client fraud and abuse, the
Department of Health and Human Services, Division of Medical Assistance, shall,
unless prohibited by federal law, include in the Medicaid enrollment process
the requirement that the applicant for Medicaid consent to or authorize in
writing the release of the applicant's medical records for the three years
immediately preceding the application for Medicaid benefits. The Department
shall obtain and use information from the applicant's medical records in a
manner and form that complies with the Health Insurance Portability and
Accountability Act of 1996 ("HIPAA"), P.L. 104‑191, as amended,
and that protects the privacy of the information as required by other
applicable federal or State law. In addition to fraud and abuse detection, the
Department may require the applicant's consent for other purposes permitted by
HIPAA and required or authorized by other applicable federal or State law.
SECTION 10.11.(y)
The Joint Legislative Oversight Committee on Mental Health, Developmental
Disabilities, and Substance Abuse Services shall provide an opportunity for
interested advocacy organizations to comment on restrictions imposed by the
Department of Health and Human Services, Division of Medical Assistance, on the
medications prescribed for Medicaid recipients, as authorized under subsection
(a)(5) of this section. The Committee may report its findings or
recommendations based on comments received to the Senate Appropriations
Committee on Health and Human Services, the House of Representatives
Appropriations Subcommittee on Health and Human Services, and the Fiscal
Research Division on or before April 30, 2006."
PROCEDURES FOR CHANGES TO DHHS MEDICAL POLICY
SECTION 10.4. Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑54.2. Procedures for changing medical policy.
The Department shall develop, amend, and adopt medical coverage policy in accordance with the following:
(1) During the development of new medical coverage policy or amendment to existing medical coverage policy, consult with and seek the advice of the Physician Advisory Group of the North Carolina Medical Society and other organizations the Secretary deems appropriate. The Secretary shall also consult with and seek the advice of officials of the professional societies or associations representing providers who are affected by the new medical coverage policy or amendments to existing medical coverage policy.
(2) At least 45 days prior to the adoption of new or amended medical coverage policy, the Department shall:
a. Publish the proposed new or amended medical coverage policy on the Department's Web site;
b. Notify all Medicaid providers of the proposed, new, or amended policy; and
c. Upon request, provide persons copies of the proposed medical coverage policy.
(3) During the 45‑day period immediately following publication of the proposed new or amended medical coverage policy, accept oral and written comments on the proposed new or amended policy.
(4) If, following the comment period, the proposed new or amended medical coverage policy is modified, then the Department shall, at least 15 days prior to its adoption:
a. Notify all Medicaid providers of the proposed policy;
b. Upon request, provide persons notice of amendments to the proposed policy; and
c. Accept additional oral or written comments during this 15‑day period."
SECTION 10.5.(a) G.S. 108A‑58 is repealed.
SECTION 10.5.(b) Part 6 of Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑58.1. Ineligibility for medical assistance based on transferring assets for less than fair market value.
(a) General rule. – Except as otherwise provided herein, an individual who is otherwise eligible to receive medical assistance under this Part is ineligible for Medicaid coverage and payment for the services specified in subsection (d) during the period specified in subsection (c) if the individual or the individual's spouse transfers an asset for less than fair market value on or after the "lookback date" specified in subsection (b).
(b) Lookback date. –
(1) Except as otherwise provided herein, the lookback date is the date specified in 42 U.S.C. § 1396p(c)(1)(B).
(2) Notwithstanding subdivision (1), the lookback date with respect to the medical services specified in subdivision (d)(2) is the date specified in 42 U.S.C. § 1396p(c)(1)(B) or February 1, 2003, whichever is later.
(c) Penalty period. – The penalty period for the transfer of assets for less than fair market value is the period specified in 42 U.S.C. § 1396p(c)(1)(D), (E), and (H).
(d) Medical services. –
(1) In the case of an institutionalized individual, the transfer of assets penalty applies with respect to nursing facility services, a level of care in any institution equivalent to that of nursing facility services, and to home or community‑based services furnished under the State's Community Alternatives Program waiver pursuant to 42 U.S.C. § 1396n(c) or (d).
(2) In the case of a noninstitutionalized individual, the transfer of assets penalty applies with respect to home health services and personal care services as defined in 42 U.S.C. § 1396d(a)(7) and (24) and, to the extent permitted by federal law, such other long‑term care services specified by rules adopted by the Department of Health and Human Services pursuant to subsection (k) of this section.
(e) Assets. – Assets are the income and resources of an individual or the individual's spouse (including the individual's or spouse's home) as defined in 42 U.S.C. § 1396p(h) and 42 U.S.C. § 1396p(c)(1)(G), (I), and (J).
(f) Fair market value and uncompensated value. –
(1) The fair market value of an asset is the value (minus any valid and legally enforceable liens, mortgages, and encumbrances against the asset) that would have been received if the asset had been sold for good and valuable consideration at the prevailing market price at the time the asset was transferred. In the case of real or personal property that is taxable under Subchapter II of Chapter 105 of the General Statutes, there is a rebuttable presumption that the fair market value of the property is its most recent value as ascertained under Subchapter II of Chapter 105 of the General Statutes (minus any valid and legally enforceable liens, mortgages, and encumbrances against the property).
(2) The uncompensated value of an asset is its fair market value minus the amount of good and valuable consideration received in exchange for the asset's transfer.
(g) Individual. – An individual is a person who applies for or is receiving medical assistance under this Part regardless of whether the person was, at the time an asset was transferred, a Medicaid applicant or recipient. The term "individual" also includes an individual's legal representative, anyone acting at the individual's direction or request, and any person, agency, or court acting lawfully on behalf of the individual.
(h) Institutionalized and noninstitutionalized individuals. –
(1) An institutionalized individual is an individual who meets the criteria set forth in 42 U.S.C. § 1396p(h)(3), regardless of whether the individual was institutionalized at the time an asset was transferred.
(2) A noninstitutionalized individual is any individual who (i) is not an institutionalized individual, (ii) is an aged, blind, or disabled person who is categorically or medically needy pursuant to 42 C.F.R. § 435. § 120 or a qualified Medicare beneficiary as defined in 42 U.S.C. § 1396d(p)(1), and (3) is not eligible for medical assistance under this Part based on his or her eligibility for an optional State supplement pursuant to 42 C.F.R. § 435.232.
(i) Exceptions. –
(1) This section does not apply if an individual establishes by the greater weight of the evidence that the transfer was exclusively for some purpose other than establishing or retaining eligibility for medical assistance under this Part.
(2) This section does not apply to any transfer specified in 42 U.S.C. § 1396p(c)(2)(A), (B), (C)(i), or (C)(iii).
(j) Hardship waiver. – The Department of Health and Human Services shall waive a transfer of assets penalty that has been imposed or is imposable under this section if the Department determines that imposition of the penalty would create an undue hardship.
(k) Rules and compliance with federal law.–
(1) This section shall be interpreted and administered consistently with governing federal law, including 42 U.S.C. § 1396p(c).
(2) The Department of Health and Human Services shall determine and publish at least annually the average monthly cost of nursing facility services for private patients that will be used in determining the length of a penalty period under this section.
(3) The Department of Health and Human Services shall provide for a hardship waiver process in accordance with 42 U.S.C. § 1396p(c)(2)(D).
(4) The Department of Health and Human Services may adopt administrative rules that are necessary and appropriate to implement this section or the requirements of 42 U.S.C. § 1396p(c) or other federal laws governing the transfer of assets and Medicaid eligibility."
SECTION 10.5.(c) This section is effective when it becomes law. This section does not affect the validity of any Medicaid transfer of assets penalty that was validly imposed before the date this act becomes law under prior federal or state law or rules.
MEDICAID DUALLY ELIGIBLE TO ENROLL IN MEDICARE PARTS A,B,C, D
SECTION 10.6. G.S. 108A‑55.1 reads as rewritten:
"§ 108A‑55.1. Medicare enrollment required.
The Department shall require State
Medical Assistance Program recipients who qualify for Medicare to enroll in
Medicare, in accordance with Title XIX of the Social Security Act, in order to
pay medical expenditures that qualify for payment under Medicare Part B. Parts
A, B, C, and D.
Failure to enroll in Medicare
shall result in nonpayment of these expenditures under the State Medical
Assistance Program. A provider may seek payment for services from Medicaid
enrollees who are eligible for but not enrolled in Medicare Part B
Parts A, B, C, and D."
MEDICAID RESERVE fund TRANSFER
SECTION 10.7.(a) Of the funds transferred to the Department of Health and Human Services for Medicaid programs pursuant to G.S. 143‑23.2, the sum of fifty million dollars ($50,000,000) for the 2006‑2007 fiscal year shall be allocated as prescribed by G.S. 143‑23.2(b) for Medicaid programs. Notwithstanding the prescription in G.S. 143‑23.2(b) that these funds not reduce State general revenue funding, these funds shall replace the reduction in general revenue funding effected in this act.
SECTION 10.7.(b) Of the funds transferred to the Department of Health and Human Services for Medicaid programs pursuant to G.S. 143‑23.2, the sum of five million four thousand five hundred four dollars ($5,004,504) for the 2006‑2007 fiscal year shall be allocated as prescribed by G.S. 143‑23.2(b) for the implementation of the Medicaid Management Information System (MMIS).
REQUIRED DATA SHARING BY PRIVATE HEALTH INSURERS
SECTION 10.8. Part 1 of Article 50 of Chapter 58 of the General Statutes is amended by adding the following new section to read:
"§ 58‑50‑46. Insurers to provide certain information to Department of Health and Human Services.
(a) As used in this section, the terms:
(1) 'Department' means the Department of Health and Human Services.
(2) 'Division' means the Division of Medical Assistance of the Department of Health and Human Services.
(3) 'Health insurer' includes self‑insured plans, group health plans (as defined in section 607(1) of the Employee Retirement Income Security Act of 1974, [29 USC Section 1167(1)]), service benefit plans, managed care organizations, or other parties that are, by statute, contract, or agreement, legally responsible for payment of a claim for a health care item or service as a condition of doing business in the State.
(4) 'Medical assistance' means medical assistance benefits provided under the State Medical Assistance Plan.
(b) Health insurers, and pharmacy benefit managers regulated as third-party administrators under Article 56 of Chapter 58 of the General Statutes, shall provide, with respect to individuals who are eligible for, or are provided, medical assistance, upon request of the Division, information to determine during what period the individual or the individual's spouse or dependents may be (or may have been) covered by a health insurer and the nature of the coverage that is or was provided by the health insurer (including the name, address, and identifying number of the plan) in a manner prescribed by the Division. Notwithstanding any other provision of law, every insurer issuing a health benefit plan shall provide, not more frequently than twelve times in a year and at no cost, to the Department of Health and Human Services, upon its request, information, including automated data matches conducted under the direction of the Department of Health and Human Services, Division of Medical Assistance, as necessary to (i) identify individuals covered under the insurer's health benefit plans who are also recipients of medical assistance; (ii) determine the period during which the individual or the individual's spouses or the individual's dependents may be or may have been covered by the health benefit plan; and (iii) determine the nature of the coverage. To facilitate the Division in obtaining this and other related information, every health insurer shall:
(1) Cooperate with the Division to determine whether a named individual who is a recipient of medical assistance may be covered under the insurer's health benefit plan and eligible to receive benefits under the health benefit plan for services provided under the State Medical Assistance Plan.
(2) Respond to the request for information within 90 working days after receipt of written proof of loss or claim for payment for health care services provided to a recipient of medical assistance who is covered by the insurer's health benefit plan.
(3) Accept the Division's right of recovery and the assignment to the Division of any right of an individual or other entity to payment from the party for an item or service for which payment has been made under the State Medical Assistance Plan.
(4) Respond to any inquiry by the Division regarding a claim for payment for any health care item or service that is submitted not later than three years after the date of the provision of the health care item or service.
(5) Agree not to deny a claim submitted by the Division solely on the basis of the date of submission of the claim, the type of format of the claim form, or a failure to present property documentation at the point‑of‑sale that is the basis of the claim, if:
a. The claim is submitted by the Division within the three‑year period beginning on the date on which the item or service was furnished; and
b. Any action by the Division to enforce its rights with respect to such claim is commenced within six years of the Division's submission of the claim.
(c) An insurer that complies with this section shall not be liable on that account in any civil or criminal actions or proceedings."
TICKET TO WORK EFFECTIVE DATE CHANGE
SECTION 10.9.(a) Section 10.18(c) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.18.(c)
Subsection (b) of this section becomes effective July 1, 2006. Subsection (a)
of this section becomes effective July 1, 2007, or within 30 days after the
date on which the MMIS becomes operational, as determined by the Department of
Health and Human Services, whichever occurs later.2007. Client
enrollment shall begin not later than six months from the date subsection (a)
becomes effective. The remainder of this section is effective when it becomes
law."
SECTION 10.9.(b) The Department of Health and Human Services shall study and develop a plan for the implementation of the Ticket to Work Program. The Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than March 1, 2007, on the results of its study. The report shall include what system changes need to be made to implement the Ticket to Work Program, how soon the changes can be made, and an analysis of the five‑year fiscal impact of the Program.
PUBLIC‑PRIVATE LONG TERM CARE PARTNERSHIP PROGRAM
SECTION 10.10. Pursuant to authority under Section 1917(b) of the Social Security Act (42 USC 1396p(c)), as amended by Public Law 109‑171 effective January 1, 2007, there is established in the Department of Health and Human Services the North Carolina Long‑Term Care Partnership Program. The purpose of the Program is to reduce future Medicaid costs for long‑term care by delaying or eliminating dependence on Medicaid. The Program shall be administered by the Department of Health and Human Services with the assistance of the Commissioner of Insurance. The Department shall structure and administer the Program in accordance with applicable federal law and guidelines for qualified State long‑term care partnerships. The Program, including the treatment of assets for Medicaid eligibility and estate recovery, notwithstanding statutory provisions on treatment of assets and estate recovery to the contrary, shall offer incentives to individuals to insure against the substantial costs of providing for their long‑term care needs. The Long‑Term Care Partnership Program becomes effective on the effective date of the approved State Plan amendment.
STUDY MEDICAID PROVIDER RATE INCREASES
SECTION 10.11.(a) The Secretary of the Department of Health and Human Services shall study and develop a proposal for an equitable standard for providing inflationary increases and other cost‑related increases to service providers in the Medicaid program. The Department shall seek the assistance of external consultants and other appropriate financial experts and affected parties to validate any methodologies used in the development of the standard.
SECTION 10.11.(b) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of one hundred thousand dollars ($100,000) for the 2006‑2007 fiscal year shall be used to support the study. Not later than March 1, 2007, the Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on the findings and recommendations of the study.
SECTION 10.11.(c) The Department of Health and Human Services shall study the feasibility and effectiveness of adjusting and rebasing case-mix reimbursement rates using 2005 cost data for nursing facilities. The study shall include the frequency of rebasing to appropriately reflect increases and decreases in reported and audit costs.
INCREASE HEALTH CARE ACCESS FOR UNINSURED PERSONS
SECTION 10.12.(a) The Secretary of the Department of Health and Human Services shall develop a plan to expand health care access for uninsured North Carolinians through the use of public/private partnerships, federal flexibility and resources, and promotion of charity care by health care providers. The goals of the plan are to:
(1) Aid small businesses that want to provide health care coverage.
(2) Expand health care coverage for the working uninsured persons.
(3) Secure all available federal funds to support the program.
(4) Promote charity care by health care providers.
SECTION 10.12.(b) In developing the plan, the Secretary shall:
(1) Consider findings and recommendations of previous studies on increased access to health care and covering the uninsured to determine their feasibility.
(2) Draw on the experience of other states that have successfully increased access to health care and covered the uninsured.
(3) Determine waivers necessary to secure federal funding available through 1115 Demonstration Waivers and other federal waivers to cover the uninsured.
(4) Explore options such as those available through the Deficit Reduction Act of 2005 (DEFRA) to adjust Medicaid eligibility and benefits to cover the uninsured.
(5) Consider the use of existing funding that might be used to leverage additional federal matching funds including certified public expenditures (CPE), and appropriate federal Disproportionate Share Hospital Program (DSH) funds.
(6) Pursue an agreement with the Centers for Medicare and Medicaid Services (CMS) to develop a methodology for investing Medicare savings realized from the expansion of the scope of Community Care of North Carolina Program to help fund the plan; and
(7) Determine in conjunction with the Office of State Budget and Management the fiscal impact of the plan for a five‑year period.
SECTION 10.12.(c) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of two hundred thousand dollars ($200,000) for the 2006‑2007 fiscal year shall be used to support the development of the plan. The proposed plan shall be submitted to the 2007 General Assembly not later than March 1, 2007.
HEALTH INFORMATION SYSTEMS (HIS) FUNDS
SECTION 10.13.(a) The sum of nine million eight hundred thirty‑five thousand seven hundred ninety‑five dollars ($9,835,795) is appropriated from Budget Code 24430, Fund Code 2117, to the Department of Health and Human Services, Division of Public Health, for the 2006‑2007 fiscal year. These funds shall be used for the development and implementation of the Health Information Systems (HIS), an initiative that will provide an automated means of capturing, monitoring, reporting, and billing services provided in local health departments, CDSAs, and the State Public Health Lab. The HIS will allow for interfaces to local health departments' own vendor systems and is intended to replace the outdated Health Services Information System. Allocation of these funds is contingent upon full compliance with the reporting requirements of Section 10.59A.(b) of S.L. 2005‑276 and the identification of total estimated costs and future funding sources.
SECTION 10.13.(b) The Department of Health and Human Services, Division of Public Health, shall report on the use of these funds to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division not later than March 1, 2007.
SECTION 10.14. Section 10.59F of S.L. 2005‑276 (as amended by Section 20 of S.L. 2005‑345), G.S. 130A‑440.1, and Part 34 of Article 3 of Chapter 143B of the General Statutes are repealed.
EARLY INTERVENTION SERVICES REPORT
SECTION 10.15. The Department of Health and Human Services, Division of Public Health, shall report on Early Intervention services. The report shall include the following information for all children, ages birth to three years, entering the Early Intervention system as of July 1, 2006, through December 31, 2006:
(1) Children served: the number of children referred and the source of referral, the number of children receiving initial evaluations, the number of children determined eligible, the number of children enrolled, and the number of IFS Plans developed.
(2) Services provided: the number and types of evaluation services, treatment services, and other services provided and whether the service was provided by an employee of a Children's Developmental Services Agency or a private provider.
(3) Sliding scale participation: the percentage of enrolled children whose family income falls into each of the following categories: at or below 200% of the federal poverty level, between 250% and 300% of the federal poverty level, between 350% and 400% of the federal poverty level, and over 400% of the federal poverty level. These percentages shall be reported based on gross income and net income after allowable deductions.
The Division of Public Health shall report its findings and recommendations to the Senate Appropriations Committee on Health and Human Services, the House of Representative Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than February 1, 2007.
COMMUNITY HEALTH CENTER CHANGES
SECTION 10.16. Section 10.9(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.9.(a) Of
the funds appropriated in this act for Community Health Grants, the sum of two
million dollars ($2,000,000) in recurring funds for the 2005‑2006
fiscal year, and the sum of two million dollars ($2,000,000) in recurring
funds for the 2006‑2007 fiscal year shall be used for federally qualified
health centers, for those health centers that meet the criteria for federally
qualified health centers, and for State‑designated rural health centers
and public health departments and other clinics to:
(1) Increase access to preventative and primary care services by uninsured or medically indigent patients in existing or new health center locations;
(2) Establish community health center services in counties where no such services exist;
(3) Create new services or augment existing services provided to uninsured or medically indigent patients, including primary care and preventative medical services, dental services, pharmacy, and behavioral health; and
(4) Increase capacity necessary to serve the uninsured by enhancing or replacing facilities, equipment, or technologies.
Grant funds may not be used to enhance or increase compensation or other benefits of personnel, administrators, directors, consultants, or any other parties. Grant funds may not be used to supplant federal funds traditionally received by federally qualified community health centers and may not be used to finance or satisfy any existing debt. The Department of Health and Human Services shall distribute funds on the basis of the availability of other funds for the agency, and also on the basis of incidence of poverty or percentage of indigent clients served. Grant applicants must provide after‑hours access in order to qualify for grant funds. The Department shall give preference to those grant applicants demonstrating collaboration with the applicant's community hospital."
EDUCATION ON PREVENTION OF PRETeRM BIRTHS
SECTION 10.17. Of the funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, the sum of one hundred fifty thousand dollars ($150,000) for the 2006‑2007 fiscal year shall be used to provide education to women on the benefits of progesterone for those who have had preterm births and to purchase medication for eligible minority and low‑income women until the medication becomes readily available through the Medicaid Program. The Division of Public Health shall evaluate the impact of the use of these funds and shall share the outcomes of the evaluation with the Division of Medical Assistance, the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
COMMUNITY‑FOCUSED ELIMINATING HEALTH DISPARITIES INITIATIVE
AUTHORIZE ONE NEW POSITION FOR HEALTHY CAROLINIANS INITIATIVE
SECTION 10.18A. The Department of Health and Human Services, Division of Public Health, may use funds appropriated for the 2006-2007 fiscal year to support one new position for the Healthy Carolinians Initiative.
CLARIFICATION OF CERTAIN AUDIT REQUIREMENTS
SECTION 10.19. G.S. 143B‑139.4.(b) reads as rewritten:
"(b) A private, nonprofit organization that receives employee assistance or other appropriate services in accordance with subsection (a) of this section, shall document all contributions received, including employee time, supplies, materials, equipment, and physical space. The documentation shall also provide an estimated value of all contributions received as well as any compensation paid to or bonuses received by State employees. This documentation shall be submitted annually to the Secretary of the Department of Health and Human Services in a format approved by the Secretary. Nonprofit organizations with less than five hundred thousand dollars ($500,000) in annual income shall submit an affidavit from the chief officer of the organization providing and attesting to the financial condition of the organization and the expenditure of funds or use of State employee services or other State services. The board of directors of each private, nonprofit organization with an annual income of five hundred thousand dollars ($500,000) or more shall secure and pay for the services of the State Auditor's Office or employ a certified public accountant to conduct an annual audit of the financial accounts of the organization. The board of directors shall transmit to the Secretary of the Department a copy of the annual financial audit report of the private nonprofit organization. Nothing in this subsection shall be construed to relieve the private, nonprofit organization from other applicable reporting requirements established by law."
SECTION 10.21. Section 10.59(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.59.(a) For
the 2005‑2006 fiscal year and for the 2006‑2007 fiscal year, HIV‑positive
individuals with incomes at or below one hundred twenty‑five percent
(125%) of the federal poverty level are eligible for participation in ADAP.
Eligibility for participation in ADAP during the 2005‑2007 fiscal
biennium shall not be extended to individuals with incomes above one hundred
twenty‑five percent (125%) of the federal poverty level.For the
2006‑2007 fiscal year, the Department may adjust the financial
eligibility criterion of the ADAP Program up to an amount not exceeding two
hundred fifty percent (250%) of the federal poverty level in order to serve as
many eligible North Carolinians living with HIV disease as possible within
existing resources plus any new federal resources. If the Department raises the
eligibility limit above one hundred twenty‑five percent (125%) of the
federal poverty level and a waiting list develops as a result, the Department
shall give priority on the waiting list to those individuals at or below one
hundred twenty‑five percent (125%) of the federal poverty level."
TECHNICAL CORRECTION TO LICENSURE FEE LIMITS
SECTION 10.22. G.S. 131E‑267 reads as rewritten:
"§ 131E‑267. Fees for departmental review of health care facility construction projects.
The Department of Health and Human
Services shall charge a fee for the review of each health care facility
construction project to ensure that project plans and construction are in
compliance with State law. The fee shall be charged on a one‑time, per‑project
basis, as follows, and shall not exceed twelve thousand five hundred dollars
($12,500)twenty‑five thousand dollars ($25,000) for any single
project:
Institutional Project Project Fee
Hospitals $ 300.00 plus $0.20/square foot of project space
Nursing Homes $ 250.00 plus $0.16/square foot of project space
Ambulatory Surgical Facility $ 200.00 plus $0.16/square foot of project space
Psychiatric Hospital $ 200.00 plus $0.16/square foot of project space
Adult Care Home
7 or more beds $ 175.00 plus $0.10/square foot of project space
Residential Project Project Fee
Family Care Homes $ 175.00 flat fee
ICF/MR Group Homes $ 275.00 flat fee
Group Homes: 1‑3 beds $ 100.00 flat fee
Group Homes: 4‑6 beds $ 175.00 flat fee
Group Homes: 7‑9 beds $ 225.00 flat fee
Other residential:
More than 9 beds $ 225.00 plus $0.075/square foot of project space."
CLARIFICATION OF FEES FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICE FACILITIES
SECTION 10.23. G.S. 122C‑23(h) reads as rewritten:
"(h) The Department
shall charge facilities licensed under this Chapter that have licensed beds a
nonrefundable annual base license fee plus a nonrefundable annual per‑bed
fee as follows:
Type of Facility Number of Beds Base Fee Per‑Bed Fee
Facilities (non ICF/MR): 0 beds $175.00 $0
Facilities (non‑ICF/MR):
6
of fewer
1 to 6 beds $250.00 $0
More than 6 beds $350.00 $12.50
ICF/MR Only: 6
or fewer
1 to 6 beds $650.00 $0
More than 6 beds $650.00 $12.50"
TRANSFER ADVOCACY AND CUSTOMER SERVICE SECTION TO OFFICE OF THE SECRETARY
SECTION 10.24. The Advocacy and Customer Service Section of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services is transferred to the Office of the Secretary of the Department of Health and Human Services. The transfer has the elements of a Type I transfer as defined in G.S. 143A‑6. In addition to its other responsibilities, the Advocacy and Customer Service Section shall assume and carry out the requirements of the Consumer Advocacy Program as established under Article 1A of Chapter 122C of the General Statutes.
AUTHORIZE LOCAL MANAGEMENT ENTITIES TO TRANSFER FUNDS BETWEEN AGE AND DISABILITY CATEGORIES
SECTION 10.25.(a) Notwithstanding G.S. 143‑23, an area authority or a county program may transfer from one age or disability category to a different age or disability category up to fifteen percent (15%) of the funds initially allocated to the age or disability category from which funds are being transferred. Prior to the transfer, the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall verify that the transfer meets applicable federal requirements. Area authorities and county programs shall:
(1) Publicly document that they have addressed the service needs of the category from which the funds are being transferred before any transfer may occur, and
(2) Submit the required documentation to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and to the Fiscal Research Division within 15 days of making the transfer.
SECTION 10.25.(b) This section expires July 1, 2007.
AREA AUTHORITY AND COUNTY PROGRAM CRISIS REGIONS
SECTION 10.26.(a) Using funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and allocated to area authorities and county programs for this purpose, area authorities and county programs shall organize themselves into no more than 21 crisis regions based upon the existing Geriatric Specialty team configurations or other approved regions. These funds shall be allocated to each area authority or county programs on a per capita basis. The funds may be used for operational start‑up, capital, or subsidies related to developing a continuum of crisis services. No more than three percent (3%) may be spent for administrative costs. The area authorities and county program within a crisis region shall work together to identify gaps in their ability to provide a continuum of crisis services for all consumers and use the funds allocated to them to develop and implement a plan to address those needs. At a minimum, the plan must address the development over time of the following components: 24‑hour crisis telephone lines, walk‑in crisis services, mobile crisis outreach, crisis respite/residential services, crisis stabilization units, 23‑hour beds, facility‑based crisis, in‑patient crisis and transportation. Options for voluntary admissions to a secured facility must include at least one service appropriate to address the mental health, developmental disability, and substance abuse needs of adults, and the mental health, developmental disability, and substance abuse needs of children. Options for involuntary commitment to a secured facility must include at least one option in addition to admission to a State facility.
If all area authorities and county programs in a crisis region determine that a facility‑based crisis center is needed and sustainable on a long‑term basis, the crisis region shall attempt to secure those services through a community hospital or other community facility first. If all the area authorities and county programs in the crisis region determine the region's crisis needs are being met, the area authorities and county programs may use the funds to meet local crisis service needs.
SECTION 10.26.(b) Of the funds appropriated in this act for consultant services to aid local management entities and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of two hundred twenty‑five thousand dollars ($225,000) shall be used for consulting services engaged pursuant to this subsection. Each area authority and county program and each crisis region shall utilize the technical assistance of a consultant under contract with the Department of Health and Human Services to develop and implement its crisis services plan. The consultant shall assist area authorities and county programs and crisis regions to identify local and regional gaps in crisis services, identify options for providing services, implement new services, and maintain transparency and accountability for the use of funds. The crisis region or area authorities and county programs shall submit their crisis services plan to the consultant and to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (Division) for review and public comment. The crisis regions and area authorities and county programs shall consider the comments prior to submitting a final plan for implementation. Upon submission of a final plan to the Department of Health and Human Services, each crisis region, area authority, and county program will receive implementation funds. Funds not expended during the 2006‑2007 fiscal year shall not revert.
Area authorities and county programs and crisis regions shall report monthly to the consultant and to the Division regarding the use of the funds, whether there has been a reduction in the use of State psychiatric hospitals for acute admissions, and remaining gaps in local and regional crisis services. The consultant shall report regularly to the General Assembly, the Fiscal Research Division, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services regarding each crisis region's and area authorities' and county programs' proposed and actual use of the funds.
EXTEND SUNSET FOR FIRST COMMITMENT PILOT PROGRAM
SECTION 10.27. S.L. 2003‑178 reads as rewritten:
"SECTION 1. The Secretary of Health and Human Services may, upon request of a phase‑one local management entity, waive temporarily the requirements of G.S. 122C‑261 through G.S. 122C‑263 and G.S. 122C‑281 through G.S. 122C‑283 pertaining to initial (first‑level) examinations by a physician or eligible psychologist of individuals meeting the criteria of G.S. 122C‑261(a) or G.S. 122C‑281(a), as applicable, as follows:
(1) The Secretary has received a request from a phase‑one local management entity to substitute for a physician or eligible psychologist, a licensed clinical social worker, a masters level psychiatric nurse, or a masters level certified clinical addictions specialist to conduct the initial (first‑level) examinations of individuals meeting the criteria of G.S. 122C‑261(a) or G.S. 122C‑281(a). The waiver shall be implemented on a pilot‑program basis. The request from the local management entity shall be submitted as part of the entity's local business plan and shall specifically describe:
a. How the purpose of the statutory requirement would be better served by waiving the requirement and substituting the proposed change under the waiver.
b. How the waiver will enable the local management entity to improve the delivery or management of mental health, developmental disabilities, and substance abuse services.
c. How the services to be provided by the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist under the waiver are within each of these professional's scope of practice.
d. How the health, safety, and welfare of individuals will continue to be at least as well protected under the waiver as under the statutory requirement.
(2) The Secretary shall review the request and may approve it upon finding that:
a. The request meets the requirements of this section.
b. The request furthers the purposes of State policy under G.S. 122C‑2 and mental health, developmental disabilities, and substance abuse services reform.
c. The request improves the delivery of mental health, developmental disabilities, and substance abuse services in the counties affected by the waiver and also protects the health, safety, and welfare of individuals receiving these services.
d. The duties and responsibilities performed by the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist are within the individual's scope of practice.
(3) The Secretary shall evaluate the effectiveness, quality, and efficiency of mental health, developmental disabilities, and substance abuse services and protection of health, safety, and welfare under the waiver. The Secretary shall send a report on the evaluation to the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substances Abuse Services on or before July 1, 2006.
(4) The waiver granted by the
Secretary under this section shall be in effect for a period not to exceed
three years, or the period for which the requesting local management entity's
business plan is approved, whichever is shorter.until October 1, 2007.
(5) The Secretary may grant a waiver under this section to up to five local management entities that have been designated as phase‑one entities as of July 1, 2003.
(6) In no event shall the substitution of a licensed clinical social worker, masters level psychiatric nurse, or masters level certified clinical addictions specialist under a waiver granted under this section be construed as authorization to expand the scope of practice of the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist.
(7) The Department shall assure that staff performing the duties are trained and privileged to perform the functions identified in the waiver. The Department shall involve stakeholders including, but not limited to, the North Carolina Psychiatric Association, The North Carolina Nurses Association, National Association of Social Workers, The North Carolina Substance Abuse Professional Certification Board, North Carolina Psychological Association, The North Carolina Society for Clinical Social Work, and the North Carolina Medical Society in developing required staff competencies.
(8) The local management entity shall assure that a physician is available at all times to provide backup support to include telephone consultation and face‑to‑face evaluation, if necessary.
SECTION 2. This act becomes
effective July 1, 2003, and expires July 1, 2006.October 1, 2007."
CHANGES TO THE STATE PLAN FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES
SECTION 10.28.(a) G.S. 122C‑102 reads as rewritten:
"§
122C‑102. State Plan for Mental Health, Developmental Disabilities, and
Substance Abuse Services.Services; system performance measures.
(a) Purpose of State Plan. – The Department shall develop and implement a State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services. The purpose of the State Plan is to provide a strategic template regarding how State and local resources shall be organized and used to provide services. The State Plan shall be issued every three years beginning July 1, 2007. It shall identify specific goals to be achieved by the Department, area authorities, and county programs over a three‑year period of time and benchmarks for determining whether progress is being made towards those goals. It shall also identify data that will be used to measure progress towards the specified goals. In order to increase the ability of the State, area authorities, county programs, private providers, and consumers to successfully implement the goals of the State Plan, the Department shall not adopt or implement policies that are inconsistent with the State Plan without first consulting with the Joint Legislative Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services.
(b) Content of State Plan. – The State Plan shall include the following:
(1) Vision and mission of the State Mental Health, Developmental Disabilities, and Substance Abuse Services system.
(2) Organizational
structure of the Department and the divisions of the Department responsible for
managing and monitoring mental health, developmental disabilities, and
substance abuse services.
(3) Protection of client rights and consumer involvement in planning and management of system services.
(4) Provision of services to targeted populations, including criteria for identifying targeted populations.
(5) Compliance with federal mandates in establishing service priorities in mental health, developmental disabilities, and substance abuse.
(6) Description of the core services that are available to all individuals in order to improve consumer access to mental health, developmental disabilities, and substance abuse services at the local level.
(7) Service standards for the mental health, developmental disabilities, and substance abuse services system.
(8) Implementation of the uniform portal process.
(9) Strategies and schedules for implementing the service plan, including consultation on Medicaid policy with area and county programs, qualified providers, and others as designated by the Secretary, intersystem collaboration, promotion of best practices, technical assistance, outcome‑based monitoring, and evaluation.
(10) A plan for coordination of the State Plan for Mental Health, Developmental Disabilities, and Substance Abuse Services with the Medicaid State Plan, and NC Health Choice.
(11) A business plan to demonstrate efficient and effective resource management of the mental health, developmental disabilities, and substance abuse services system, including strategies for accountability for non‑Medicaid and Medicaid services.
(12) Strategies and schedules for implementing a phased in plan to eliminate disparities in the allocation of State funding across county programs and area authorities by January 1, 2007, including methods to identify service gaps and to ensure equitable use of State funds to fill those gaps among all counties.
(c) State Performance Measures. – The State Plan shall also include a mechanism for measuring the State's progress towards increased performance on the following matters: access to services, consumer‑focused outcomes, individualized planning and supports, promotion of best practices, quality management systems, system efficiency and effectiveness, and prevention and early intervention. Beginning October 1, 2006, and every six months thereafter, the Secretary shall report to the General Assembly and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services on the State's progress in these performance areas."
SECTION 10.28.(b) The North Carolina Department of Health and Human Services (DHHS) shall review all State Plans for Mental Health, Development