GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
S 4
SENATE BILL 1741
Second Edition Engrossed 5/23/06
Third Edition Engrossed 5/25/06
House Committee Substitute Favorable 6/13/06
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Short Title: Modify Appropriations Act of 2005. |
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Referred to: |
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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.
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 $ 42,924,642
Department of Public Instruction 138,683,178
University of North Carolina System
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 65,287
Agricultural Research 0
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 141,936,597
Related Educational Programs 0
North Carolina School of Science and Mathematics 52,250
UNC Hospitals at Chapel Hill 0
Total University of North Carolina Board of Governors $ 132,557,054
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary $ (56,346,653)
Division of Aging 5,741,765
Division of Blind Services/Deaf/HH 0
Division of Child Development 26,561,908
Division of Education Services 996,783
Division of Facility Services 0
Division of Medical Assistance (109,150,000)
Division of Mental Health 57,068,476
NC Health Choice 0
Division of Public Health 21,414,501
Division of Social Services 17,619,957
Division of Vocation Rehabilitation 0
Total Health and Human Services $ (36,093,263)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 3,748,123
Department of Commerce
Commerce 20,312,483
Commerce State‑Aid 10,453,138
NC Biotechnology Center 4,000,000
Rural Economic Development Center 0
Department of Environment and Natural Resources
Environment and Natural Resources 13,615,057
Clean Water Management Trust Fund 0
Department of Labor 613,894
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 36,877,659
Department of Crime Control and Public Safety 6,623,243
Judicial Department 26,734,418
Judicial Department – Indigent Defense 6,985,055
Department of Justice 4,728,270
Department of Juvenile Justice and Delinquency Prevention 3,554,520
GENERAL GOVERNMENT
Department of Administration $ 4,108,759
Office of Administrative Hearings 281,367
Department of State Auditor 57,564
Office of State Controller 0
Department of Cultural Resources
Cultural Resources 4,310,053
Roanoke Island Commission 0
State Board of Elections 634,791
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 17,125,000
Department of Insurance
Insurance 388,398
Insurance – Volunteer Safety Workers' Compensation 0
Office of Lieutenant Governor 88,433
Department of Revenue 1,279,782
Department of Secretary of State 468,067
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 $ 693,676,935
Reserve for Teachers' and State Employees' Retirement Contributions 29,650,000
Retirement System Payback 30,000,000
Information Technology Fund 42,087,229
Reserve for Heating and Cooling Assistance 10,000,000
Trust Fund for MH/DD/SAS 24,205,000
State Emergency Response Account 20,000,000
Targeted County Medicaid Relief 35,000,000
Pending Ethics Legislation (HB 1843 & HB 1844) 422,871
Economic Development Initiatives 10,000,000
Higher Education and County Programs/Facilities 59,825,000
Debt Service
General Debt Service (50,000,000)
Federal Reimbursement 0
ADJUSTMENTS TO APPROPRIATIONS – GENERAL FUND $ 1,352,754,041
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 2005-06, S.L. 2005-276 117,227,875
Net Adjustments - S.L. 2005-345 (4,148,833)
Net Adjustments - S.L. 2005-435, S.L. 2005-406,
S.L. 2005-376, S.L. 2005-391 (5,826,000)
Adjustment From Estimated to Actual 2005-2006
Beginning Unreserved Balance 6,133,946
Revised Unappropriated Balance Remaining 2005-2006 $ 113,386,988
Emergency Appropriation for Department of Correction, S.L. 2006-2 (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
Credit to Savings Reserve $ (323,871,747)
Credit to Repairs and Renovation Reserve Account (210,955,188)
Revised Year End Unreserved Credit Balance $ 760,660,053
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 202,719,921
Highway Trust Fund Transfer 252,663,009
Highway Fund Transfer 0
Subtotal Nontax Revenues $ 854,232,014
Total General Fund Availability $ 18,566,308,067
Adjustments to Availability: 2006 Session
Baseline Revenue Forecast $ 698,864,995
Reserve for Sales Tax Reduction from
4.5% to 4.25% – January 1, 2007 (118,000,000)
Reserve for Upper Income Tax from
8.25% to 8.125% – January 1, 2007 (14,300,000)
Reserve for Small Business Health Insurance Tax Credit (10,800,000)
Reserve for 529 Plan Tax Deduction (2,000,000)
IRC Update Conformance (5,100,000)
Mill Rehabilitation Tax Credit (2,800,000)
Taxation of Logging Machinery (2,900,000)
Bill Lee Adjustments (800,000)
Aviation Fuel Credit Sunset – January 1, 2007 (90,000)
Tax Incentive for Ethyl Alcohol Sales (50,000)
Reserve for Joint Filing Options (1,000,000)
Reserve for Research & Development Sales Tax Rate Change (4,100,000)
Reduce Transfer to Highway Trust Fund (195,176,407)
Adjust Transfer from Insurance Regulatory Fund 388,398
Adjust Transfer from Treasurer's Office 281,784
Subtotal Adjustments to Availability: 2006 Session $ 342,418,770
Revised General Fund Availability for 2006‑2007 Fiscal Year $ 18,908,726,837
Total General Fund Appropriations
for 2006‑2007 Fiscal Year (18,908,726,837)
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 ten million nine hundred fifty‑five thousand one hundred eighty‑eight dollars ($210,955,188) 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).
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 $ 0
Division of Highways
Administration 0
Construction 39,439,500
Maintenance 190,217,256
Planning and Research 0
OSHA Program 0
Aeronautics 2,000,000
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 1,386,701
Other State Agencies 1,069,364
Reserves and Transfers 29,080,000
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 26,600,000
Estimated Revenue 1,767,140,000
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 100,567,595
Urban Loops 40,665,346
Aid to Municipalities 10,551,886
Secondary Roads 9,271,360
Program Administration (1,189,780)
Transfer to General Fund (195,176,407)
Grand Total Current Operations
and Expansion ($35,310,000)
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) $108,000,000
02. Work First County Block Grants 94,653,315
03. Child Protective Services – Child Welfare
Workers for Local DSS 12,452,391
04. Work First – Boys and Girls Clubs 1,500,000
05. Work First – After‑School Services for
At‑Risk Children 2,249,642
06. Work First – After‑School Programs for
At‑Risk Youth in Middle Schools 500,000
07. Child Welfare Collaborative 1,000,000
08. Work First – Work Central 550,000
09. Adoption Services – Special Children's
Adoption Fund 3,000,000
10. Family Violence Prevention 2,200,000
11. Foster Care 2,000,000
12. Child and Family Mental Health Services 4,000,000
13. Emergency Housing Assistance 4,000,000
Division of Child Development
14. Subsidized Child Care Program 53,237,268
DHHS Administration
15. Division of Social Services 586,931
16. Office of the Secretary 65,836
17. Office of the Secretary/DIRM – TANF
Automation Projects 592,500
18. Office of the Secretary/DIRM – NC FAST
Implementation 1,800,000
Transfers to Other Block Grants
Division of Child Development
19. Transfer to the Child Care and
Development Fund 81,292,880
Division of Social Services
20. Transfer to Social Services Block Grant for
Department of Juvenile Justice and Delinquency
Prevention – Support Our Students 2,749,642
21. Transfer to Social Services Block Grant for Child
Protective Services – Child Welfare Training in
Counties 2,550,000
22. Transfer to Social Services Block Grant for
Maternity Homes 838,000
23. Transfer to Social Services Block Grant for Teen
Pregnancy Prevention Initiatives 2,500,000
24. Transfer to Social Services Block Grant for County
Departments of Social Services for Children's Services 4,500,000
25. 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 and Adult Services
01. County Departments of Social Services $ 28,868,189
(Transfer from TANF – $4,500,000)
02. State In‑Home Services Fund 2,101,113
03. State Adult Day Care Fund 2,155,301
04. Child Protective Services/CPS Investigative
Services‑Child Medical Evaluation Program 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 two hundred thousand dollars ($2,200,000) 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 S.L. 2005‑276. 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 five hundred fifty thousand dollars ($550,000) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for the 2006‑2007 fiscal year shall be transferred to Work Central, Inc. Work Central, Inc., shall report on the number of people served and the services received as a result of the receipt of funds. The report shall contain expenditure data, including the amount of funds used for administration and direct training. The report shall also include the number of people who have been employed as a direct result of services provided by Work Central, Inc., including the length of employment in the new position. The Department of Health and Human Services shall evaluate the program and ensure that services provided are not duplicative of local employment security commissions in the nine counties served by Work Central, Inc. The evaluation report shall be submitted 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 May 1, 2007.
SECTION 5.1.(o) 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.(p) The sum of four million dollars ($4,000,000) 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 increase work participation rates by providing substance abuse and mental health services. The services shall be provided to families and children with child welfare issues and mental health or substance abuse problems that are an impediment to work. The Division of Social Services shall work with the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in the development and implementation of this program.
SECTION 5.1.(q) The sum of four million dollars ($4,000,000) 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 increase work participation rates by providing targeted emergency housing assistance for families and children receiving TANF. The funds shall be used to provide short‑term rent assistance or security deposits for families to maintain stable housing, transition from homelessness, or prevent homelessness, including domestic violence situations. The Division of Social Services shall work with the North Carolina Housing Finance Agency in the development and implementation of this program.
SECTION 5.1.(r) The sum of one million dollars ($1,000,000) appropriated in this section to the Child Welfare Collaborative in the TANF Block Grant for the 2006‑2007 fiscal year shall be used to provide service awards for students receiving undergraduate or graduate degrees in social work.
SECTION 5.1.(s) It is the intent of the General Assembly that effective beginning with the 2007‑2008 fiscal year, North Carolina counties will use county funding to replace any lost TANF and Maintenance of Effort (MOE) funds resulting from North Carolina being penalized for not meeting work participation rates in the 2006‑2007 fiscal year and thereafter. The Department of Health and Human Services, Division of Social Services, shall develop a plan for implementation of county penalty payments. The Department shall report on its development and implementation of the plan 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 April 1, 2007.
SOCIAL SERVICES BLOCK GRANT
SECTION 5.1.(t) 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.(u) 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.(v) 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.(w) 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.(x) 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.(y) 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.(z) 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.(aa) 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.(bb) 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.(cc) 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.(dd) 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.(ee) 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.(ff) 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.(gg) The Department of Health and Human Services shall ensure that there will be follow‑up testing in the Newborn Screening Program.
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) The Department of Commerce will create a small business/entrepreneurship program in coordination with micro‑lending programs and other small business assistance groups in the State. The Department of Commerce shall award up to one million dollars ($1,000,000) in grants to local governments to provide assistance to low‑to‑moderate income individuals for small business and entrepreneurship development.
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.
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.
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 AND APPROPRIATIONS
SECTION 6.6.(a) 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 Information Technology Fund Balance,
June 30, 2006 $4,212,225
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 $59,324,454."
SECTION 6.6.(b) Appropriations from the Information Technology Fund established in G.S. 147‑33.72H are adjusted for the fiscal year ending June 30, 2007, as follows:
Appropriations based on S.L. 2005-276, Section 6.14 $ 13,025,000
ITS Operating Expenses $ 3,108,326
BEACON $ 43,191,129
Total Appropriation 2006-2007 $ 59,324,454
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 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."
TARGETED COUNTY MEDICAID RELIEF
SECTION 6.12. Of the funds appropriated in this act to the Office of State Budget and Management for the 2006‑2007 fiscal year, the sum of thirty‑five million dollars ($35,000,000) in nonrecurring funds for the 2006‑2007 fiscal year shall be reserved and allocated to reduce the county share of the nonfederal share of Medical Assistance Program expenditures, as follows:
(1) Forty percent (40%) shall be allocated among counties with a Medicaid‑eligible population of twenty‑five percent (25%) or greater of the total county population. The allocation shall be based on a county's percentage of the total Medicaid budget for all counties with a Medicaid‑eligible population of twenty‑five percent (25%) or greater.
(2) Fifty‑five percent (55%) shall be allocated among counties with a Medicaid‑eligible population of at least fifteen percent (15%) but less than twenty‑five percent (25%) of the total county population. The allocation shall be based on a county's percentage of the total Medicaid budget for all counties with a Medicaid population of at least fifteen percent (15%) but less than twenty‑five percent (25%).
(3) Five percent (5%) shall be allocated to counties with a Medicaid population of less than fifteen percent (15%) of the total county population. The allocation shall be based on a county's percentage of the total Medicaid budget for all counties with a Medicaid population of less than fifteen percent (15%).
ELIZABETH CITY AVIATION RESEARCH AND DEVELOPMENT COMMERCE PARK
SECTION 6.13. Of the funds appropriated in this act to the Office of State Budget and Management, the sum of four million dollars ($4,000,000) shall be allocated to the Elizabeth City/Pasquotank County Airport Authority for land acquisition and site development to establish the Elizabeth City Aviation Research and Development Commerce Park. The Authority shall transfer a minimum of 20 acres of acquired land to Elizabeth City State University, upon request of the Board of Governors of The University of North Carolina, to establish an aviation educational center and aviation educational programs at the Park.
COMMUNITY COLLEGE CAPITAL
SECTION 6.14.(a) Of the funds appropriated in this act to the Office of State Budget and Management, the sum of forty million dollars ($40,000,000) shall be allocated to the Community Colleges System Office for a Community College Capital Fund to be used for the purpose of awarding grants to community colleges for capital needs. The Community Colleges System Office shall develop a competitive grant application process and guidelines for capital projects and shall award grants on the merit of the applications received. These grants shall be awarded on a matching basis of two State dollars for every one non‑State dollar and no individual grant may exceed the sum of two million dollars ($2,000,000).
SECTION 6.14.(b) Beginning September 1, 2006, the Community Colleges System Office shall submit a quarterly report to the Office of State Budget and Management and the Fiscal Research Division containing the following information about each capital project that was awarded a grant: (i) the name of the community college; (ii) a description of the project; (iii) the project location; (iv) the cost‑benefit analysis conducted by the Community Colleges System Office and the rationale for awarding the grant; and (v) the amount of the grant.
Education Lottery Fund Revenue and Appropriations
SECTION 6.15.(a) Pursuant to G.S. 18C‑164, the revenue used to support appropriations made in this act is transferred from the State Lottery Fund in the amount of four hundred twenty‑five million dollars ($425,000,000) for the 2006‑2007 fiscal year.
SECTION 6.15.(b) The appropriations made from the Education Lottery Fund pursuant to G.S. 18C‑164(d) for the 2006‑2007 fiscal year are as follows:
Class Size Reduction $ 127,864,291
Prekindergarten Program 84,635,709
Public School Building Capital Fund 170,000,000
Scholarships for Needy Students 42,500,000
Total Appropriation $ 425,000,000
ECONOMIC DEVELOPMENT INITIATIVES
SECTION 6.16.(a) There is established in the Department of Commerce a reserve to be known as the North Carolina Economic Development Reserve Fund. Funds from the Reserve Fund shall not be expended or transferred except in accordance with the provisions of this section.
SECTION 6.16.(b) Of the funds appropriated in this act to the Department of Commerce, the sum of ten million dollars ($10,000,000) shall be allocated to the North Carolina Economic Development Reserve Fund for the purpose of awarding grants for statewide economic development projects. The Department of Commerce shall develop a competitive grant application process and guidelines for statewide economic development projects and shall award grants on the merits of the applications received. No individual grant shall exceed the sum of one million dollars ($1,000,000).
SECTION 6.16.(c) Beginning September 1, 2006, the Department of Commerce shall submit a quarterly report to the Office of State Budget and Management and the Fiscal Research Division containing the following information about each economic development project that was awarded a grant: (i) the name of the business involved; (ii) a description of the project; (iii) the project location; (iv) the cost‑benefit analysis conducted by the Department and the rationale for awarding the grant; and (v) the amount of the grant.
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 31 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
30+ $4,982 $5,580.
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
30+ $5,480 $6,138.
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.
SECTION 7.3.(g) The Director of the Budget shall transfer from the Reserve for Compensation Increases funds necessary to provide a one‑time, lump‑sum compensation bonus payable at the end of the employee's first pay period after October 1, 2006, in the amount of three hundred dollars ($300.00) for all central office employees whose salaries are supported from the State's General Fund, who were employed for all or part of fiscal year 2005‑2006, and who are employed by the public schools on October 1, 2006. The compensation bonus shall be adjusted pro rata for permanent part‑time employees and employees working on a schedule requiring less than 12 months' service per year.
Local boards of education shall provide a one‑time, lump‑sum compensation bonus payable at the end of the employee’s first pay period after October 1, 2006, of three hundred dollars ($300.00) for all such employees whose salaries are not supported from the State's General Fund, who were employed by a local board of education for all or part of fiscal year 2005‑2006, and who are employed by that local board of education on October 1, 2006. The compensation bonus shall be adjusted pro rata for permanent part‑time employees and employees working on a schedule requiring less than 12 months' service per year.
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%).
SECTION 7.4.(c) The State Board of Education may adopt salary ranges for noncertified personnel to support increases of five percent (5%) for the 2006‑2007 fiscal year.
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.
Local boards of education shall provide a one‑time, lump‑sum compensation bonus payable at the end of the employee's first pay period after October 1, 2006, of three hundred dollars ($300.00) for all such employees whose salaries are not supported from the State's General Fund, who were employed by a local board of education for all or part of fiscal year 2005‑2006, and who are employed by that local board of education on October 1, 2006. The compensation bonus shall be adjusted pro rata for permanent part‑time employees and employees working on a schedule requiring less than 12 months' service per year.
BONUS FOR CERTIFIED PERSONNEL AT THE TOP OF THEIR SALARY SCHEDULES
SECTION 7.5. Effective July 1, 2006, any permanent personnel employed on July 1, 2006, and paid at the top of the principal and assistant principal salary schedule shall receive a one‑time bonus equivalent to two percent (2%). Personnel defined under G.S. 115C‑325(a)(5a) are not eligible to receive the bonus.
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) Notwithstanding G.S. 143‑23, the State Board of Education may use funds appropriated to the Department of Public Instruction and to the State Public School Fund to establish a consolidated, comprehensive program through which to provide assistance to low‑performing schools. For this purpose only, the Board may, with approval from the Office of State Budget and Management, transfer funds between personal service and nonpersonal service line items currently supporting positions, related operating costs, and contracts for school improvement teams and for assistance teams. Funds transferred pursuant to this section shall not be used to raise the salary of existing employees.
The Board shall report to the Joint Legislative Education Oversight Committee and the Joint Legislative Commission on Governmental Operations by January 15, 2007, on any restructuring of the assistance program pursuant to this section.
SECTION 7.6.(c) The Joint Legislative Education Oversight Committee shall review the incentive award structure described in this section and determine whether the relationship between awards for teachers and teacher assistants at each level of achievement is appropriate.
SECTION 7.7. The State Board of Education shall allocate funds for children with disabilities on the basis of two thousand nine hundred seventy‑two dollars and fifty‑two cents ($2,972.52) per child for a maximum of 170,240 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.
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.
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.
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 7.17. Notwithstanding G.S. 143‑23, the State Board of Education may use monies from the State Public School Fund in the 2006‑2007 fiscal year only to pay for the additional costs associated with an increased number of registration fees for students enrolling in Distance Education courses.
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 With the prior
approval of the General Assembly in the Current Operations Appropriations Act, the
revolving fund may also be used by the Public School Forum, as
administrator for the Teaching Fellows Program, may use up to one hundred
fifty thousand dollars ($150,000) annually from the fund balance for costs
associated with administration of the Teaching Fellows Program."
SECTION 7.19.(b) The Public School Forum, as administrator for the Teaching Fellows Program, may use up to eight hundred ten thousand dollars ($810,000) for the 2006‑2007 fiscal year from the balance in the revolving fund established in G.S. 115C‑363.23A(f) for costs associated with administration of the Teaching Fellows Program. The funding provided for administration of the Teaching Fellows Program in this subsection 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 March 15, 2007, on:
(1) Actual expenditures for the 2005‑2006 fiscal year and budgeted expenditures for the 2006‑2007 fiscal year for administration of the Program;
(2) Initiatives to recruit minorities to the Program; and
(3) The additional campuses selected to participate in the Program and 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.
study the compensation of school psychologists with national certification
SECTION 7.22. The State Board of Education shall study the adequacy of the compensation of school psychologists who are designated as Nationally Certified School Psychologists by the National School Psychology Certification Board. In the course of the study, the State Board of Education shall consider (i) whether these school psychologists should be compensated at the same level as teachers who are certified by the National Board for Professional Teaching Standards (NBPTS) and (ii) the cost of compensating them at that level.
The State Board of Education shall report the results of its study to the Joint Legislative Education Oversight Committee prior to January 15, 2007.
SALARIES OF COMMUNITY COLLEGE FACULTY AND PROFESSIONAL STAFF
SECTION 8.1.(a) 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."
SECTION 8.1.(b) Section 8.3(g) of S.L. 2005‑276 reads as rewritten:
"SECTION 8.3.(g) Funds
For the 2005-2006 fiscal year, funds appropriated in this act for
salary increases shall be used to increase faculty and professional staff
salaries by an average of two percent (2%). These increases are in addition to
other salary increases provided for in this act and shall be calculated on the
average salaries prior to the issuance of the compensation increase. For the
2006-2007 fiscal year, funds appropriated in this act for salary increases
shall be used to increase faculty and professional staff salaries by an average
of six percent (6%). Colleges may provide additional increases from funds
available.
The State Board of Community Colleges shall adopt rules to ensure that these funds are used only to move faculty and professional staff to the respective national averages. These funds shall not be transferred by the State Board or used for any other budget purpose by the community colleges."
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."
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.
A+ Schools – Budget Technical Correction
SECTION 9.3A. Recurring funds in the amount of one hundred thousand dollars ($100,000) appropriated to the Department of Public Instruction for the 2006‑2007 fiscal year in S.L. 2005‑276 as pass‑through funds for A+ Schools shall be transferred to the Board of Governors of The University of North Carolina to provide pass‑through funds for A+ Schools for the same purpose of providing support for the program that assists schools in implementing comprehensive school reform by integrating arts into the curriculum.
clarify Requirements for students receiving PHYSICAL EDUCATION – COACHING SCHOLARSHIP LOANS
SECTION 9.3B.(a) G.S. 116‑209.36(a) reads as rewritten:
"(a) There is
established the Physical Education – Coaching Scholarship Loan Fund. The
purpose of the Fund is to provide scholarship loans to students who are
pursuing college degrees to become public schoolteachers and coaches or
assistant coaches. Coaching Fellows shall be offered a curriculum and extracurricular
activities that advances advance skills in physical education
and coaching and that instills instill a strong motivation not
only to remain in the coaching profession but to provide leadership in the
schools where they coach. The State Education Assistance Authority shall
administer the Fund. The Fund shall provide 25 scholarship loans per
year."
SECTION 9.3B.(b) The Board of Governors of The University of North Carolina, in consultation with the North Carolina Independent Colleges and Universities, Inc., the North Carolina High School Athletic Association, Inc., and the North Carolina Coaches Association, shall study the curriculum and extracurricular activities appropriate for recipients of scholarship loans. The extracurricular activities may include programs and seminars with teachers currently coaching in North Carolina public schools.
The Board of Governors shall report the results of the study, including the costs of implementing its proposals, to the Joint Legislative Education Oversight Committee prior to January 15, 2007.
GRADUATE NURSE SCHOLARSHIP PROGRAM FOR FACULTY PRODUCTION
SECTION 9.6.(a) Of the funds appropriated by this act to the Board of Governors of The University of North Carolina for the 2006‑2007 fiscal year, the sum of one million two hundred thousand dollars ($1,200,000) shall be used to establish the Graduate Nurse Scholarship Program for Faculty Production.
SECTION 9.6.(b) The allocation of funds under subsection (a) of this section is contingent upon the enactment of House Bill 2003 of the 2005 Regular Session of the General Assembly or substantially similar legislation that establishes the Graduate Nurse Scholarship Program for Faculty Production. If House Bill 2003 of the 2005 Regular Session of the General Assembly or substantially similar legislation that establishes the Graduate Nurse Scholarship Program for Faculty Production is not enacted, then the funds allocated under subsection (a) of this act shall revert to the General Fund.
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.
TUITION AND CONTRACTUAL GRANTS FOR TEACHING/NURSING
SECTION 9.13.(a) Of the funds appropriated by this act to the Board of Governors of The University of North Carolina for the 2006‑2007 fiscal year, the sum of one million five hundred thousand dollars ($1,500,000) shall be used to implement the provisions of House Bill 1928 of the 2005 Regular Session of the General Assembly, Senate Bill 1476 of the 2005 Regular Session of the General Assembly, or substantially similar legislation to provide State Contractual Scholarship Fund grants and legislative tuition grants for students who have bachelors degrees but are pursuing licensure as nurses or teachers.
SECTION 9.13.(b) The allocation of funds under subsection (a) of this section is contingent upon the enactment of House Bill 1928 of the 2005 Regular Session of the General Assembly, Senate Bill 1476 of the 2005 Regular Session of the General Assembly, or substantially similar legislation that provides State Contractual Scholarship Fund grants and legislative tuition grants for students who have bachelors degrees but are pursuing licensure as nurses or teachers. If House Bill 1928 of the 2005 Regular Session of the General Assembly, Senate Bill 1476 of the 2005 Regular Session of the General Assembly, or substantially similar legislation that provides State Contractual Scholarship Fund grants and legislative tuition grants for students who have bachelors degrees but are pursuing licensure as nurses or teachers is not enacted, then the funds allocated under subsection (a) of this act shall revert to the General Fund.
north carolina research campus at Kannapolis
SECTION 9.14.(a) The Director of the Office of State Budget and Management shall not release funds appropriated in this act to the Board of Governors of The University of North Carolina for the North Carolina Research Campus (NCRC) at Kannapolis until the President of The University of North Carolina certifies to the Director that The University System and the developers of NCRC have entered into a Memorandum of Understanding concerning the participation in and use of space at the North Carolina Research Campus that is approved by the President.
SECTION 9.14.(b) The Director of the Office of State Budget and Management shall not release funds appropriated in this act to the North Carolina Community Colleges System Office for the North Carolina Research Campus (NCRC) at Kannapolis until the President of the North Carolina Community College System certifies to the Director that the Community College System and the developers of NCRC have entered into a Memorandum of Understanding concerning the participation in and use of space at the North Carolina Research Campus that is approved by the President.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
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.
MEDICAID
SECTION 10.3.(a) Section 10.11 of S.L. 2005-276 is repealed.
SECTION 10.3.(b) 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 allocation of the nonfederal cost of Medicaid shall be as provided in this act.
(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.
(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).
(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 subparagraphs c. and d. of this subdivision, 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 10.3.(e) 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. Unless otherwise provided, services and payment bases will be as prescribed in the State Plan as established by the Department of Health and Human Services and may be changed with the approval of the Director of the Budget.
(1) Hospital inpatient.
(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.
(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 10.3.(f) 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 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 10.3.(g) 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 10.3.(h) 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.
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."
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).
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 January 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. July 1, 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.
MEDICAID/HEALTH CHOICE DENTAL ADMINISTRATIVE SERVICES STUDY
SECTION 10.9A. The Department of Health and Human Services, Division of Medical Assistance, shall study the costs and benefits of implementing a carve‑out of dental administrative services provided by third‑party administrators for Medicaid and NC Health Choice recipients. In conducting the study, the Division shall review the experiences of other states using carve‑out for administrative services and the likelihood that a carve‑out will increase the number of dentists willing to serve Medicaid and NC Health Choice recipients. The Department of Health and Human Services shall report its findings and recommendations and shall include in the report a comparison of what Medicaid and SCHIP dental programs in other states have done or are doing to increase the number of Medicaid and SCHIP recipients accessing dental care. The Department of Health and Human Services shall submit the report to the House of Representatives Appropriations Committee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division of the Legislative Services Office not later than March 1, 2007.
EXTEND EFFECTIVE DATE ON CHANGES to liens on real property for purposes of estate recovery under medicaid
SECTION 10.9B. Section 10.21C(c) of S.L. 2005‑276, as amended by Section 16 of S.L. 2005‑345, reads as rewritten:
"SECTION 10.21C.(c)
This section becomes effective July 1, 2006,2007, and applies to
recipients of medical assistance on or after that date."
PILOT PROGRAM TO EVALUATE USE OF TELEMONITORING EQUiPMENT IN HOME CARE SERVICES
SECTION 10.9C. The Department of Health and Human Services, Division of Medical Assistance, may implement a pilot program to evaluate the use of telemonitoring equipment in home care services and community‑based long‑term care services. The pilot program may be implemented by October 1, 2006, and shall evaluate the use of telemonitoring equipment as a tool to improve the health of home care clients and community‑based long‑term care clients through increased monitoring and responsiveness, and resulting in increased stabilization rates. The evaluation shall include a representative number of older adults. Not later than July 1, 2007, the Department shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Fiscal Research Division, and the North Carolina Study Commission on Aging on the implementation of the pilot program and its findings and recommendations on the cost‑effectiveness of telemonitoring and the benefits to individuals and health care providers.
DHHS TO DEVELOP STRATEGIES TO OFFSET THE COST TO PHARMACISTS OF PROVIDING SERVICES TO MEDICAID RECIPIENTS ENROLLED IN MEDICARE PART D.
SECTION 10.9D. The General Assembly recognizes the critical need for pharmacy management services to Medicaid recipients enrolled in Medicare Part D. In light of the additional costs to pharmacists that provide pharmacy services to Medicaid recipients enrolled in Medicare Part D, and in light of the fact that federal law does not provide federal matching funds under the Medicaid program for these services, the Department of Health and Human Services shall develop strategies for reimbursing or otherwise assisting pharmacists in providing these services to Medicaid recipients enrolled in Medicare Part D. Among the strategies to be considered is a State‑funded subsidy program to ensure that pharmacies adversely affected by the additional costs may remain in business and thus continue to provide pharmacy services throughout the State. As part of this effort, the Department shall also determine the impact of the Deficit Reduction Act of 2005 on the payment for generic drugs under the Medicaid Program. The Department shall report its findings and recommended strategies 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 April 1, 2007.
CAP MEDICAID COUNTY SHARE
SECTION 10.9E.(a) Notwithstanding any other provision of law to the contrary, each county's portion of the nonfederal share of Medical Assistance Program costs, excluding administrative costs, for the 2006‑2007 fiscal year and thereafter, shall not exceed the amount paid by the county for the nonfederal share of Medical Assistance Program costs, excluding administrative costs, for the 2005‑2006 fiscal year. The limitation on the county share shall be in effect regardless of growth in Medical Assistance Program expenditures for the 2007‑2008 fiscal year and thereafter.
SECTION 10.9E.(b) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of eighteen million dollars ($18,000,000) in recurring funds for the 2006‑2007 fiscal year shall be used to cover the increased cost to the State resulting from the cap on county share required by this section.
STATE‑COUNTY SPECIAL ASSISTANCE
SECTION 10.9F. Effective October 1, 2006, the maximum monthly rate for residents in adult care home facilities shall be one thousand one hundred forty‑eight dollars ($1,148) per month per resident.
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.
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
five million dollars ($5,000,000) ($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:allocated to federally qualified health
centers and those health centers that meet the criteria for federally qualified
health centers, State‑designated rural health centers, free clinics,
public health departments, and other nonprofit organizations that provide
primary and preventive medical services to uninsured or medically indigent
patients 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.In distributing funds, the Department of Health and Human
Services shall consider the availability of other funds for the agency, the
incidence of poverty or indigent clients served, arrangements for after-hours
care, and collaboration with the applicant's community hospital and other
safety net organizations."
COMMUNITY‑FOCUSED ELIMINATING HEALTH DISPARITIES INITIATIVE
SECTION 10.18. Of funds appropriated in this act to the Department of Health and Human Services for the 2006‑2007 fiscal year, the sum of two million dollars ($2,000,000) shall be allocated for the Community‑Focused Eliminating Health Disparities Initiative (CFEHDI) to provide grants‑in‑aid to local public health departments, American Indian tribes, and faith‑based and community‑based organizations to close the gap in the health status of African‑Americans, Hispanics/Latinos, and American Indians as compared to white persons. These grants shall focus on the use of preventive measures to support healthy lifestyles. The areas of focus on health status shall be infant mortality, HIV‑AIDS and sexually transmitted infections, cancer, diabetes, and homicides and motor vehicle deaths.
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."
funds to assist rural hospitals
SECTION 10.19A. Of the funds appropriated in this act to the Department of Health and Human Services, Office of Rural Health and Community Care, the sum of three million dollars ($3,000,000) for the 2006‑2007 fiscal year shall be allocated to small rural hospitals in need of assistance with the operations and infrastructure maintenance of the hospital. These funds may be used for:
(1) Capital and operational needs of small rural hospitals. The Office of Rural Health and Community Care shall convene an advisory group to establish criteria for distribution of these funds. The criteria shall include the number of indigent patients served, the number of Medicaid recipients served, the per capita income of the area served by the hospital, and the financial needs of the hospital; and
(2) Pilot demonstration programs that address issues critical to the long‑term survivability of rural hospitals such as: development of regional care networks for mental health services; restructuring of emergency department and outpatient services; and disease‑focused regional referral and care networks. The Office of Rural Health and Community Care shall convene an advisory group to establish criteria for the pilot demonstration projects, distribution of funds, and monitoring and evaluation of the pilot projects.
The Office of Rural Health and Community Care shall report on the allocation of funds appropriated under this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than April 1, 2007.
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. The
Commission for Health Services shall adopt temporary rules in accordance with
G.S. 150B-21.1 to implement adjustments in financial eligibility, including
wait-list priorities, as soon as possible in order to access additional federal
funds made available for ADAP program services."
Area Authority and County Program Crisis Regions
SECTION 10.26.(a) Of the funds appropriated in this act to the Department of Health and Human Services, the sum of five million two hundred fifty thousand dollars ($5,250,000) for the 2006‑2007 fiscal year shall be allocated on a per capita basis and shall be used by area authorities and county programs for operational start‑up, capital, or subsidies related to the development and implementation of a plan for a continuum of regional crisis facilities and local crisis services ("crisis plan"). Funds not expended during the 2006‑2007 fiscal year shall not revert to the General Fund but shall remain available for the purposes outlined in this subsection. As used in this subsection, the term "crisis" includes services for individuals with mental illnesses, developmental disabilities, and substance abuse addictions.
SECTION 10.26.(b) Of the funds appropriated in this act to the Department of Health and Human Services, the sum of two hundred twenty‑five thousand dollars ($225,000) for the 2006‑2007 fiscal year shall be used by the Department to hire a consultant to provide technical assistance to Local Management Entities (LMEs) to develop and implement the crisis plans required under subsection (a) of this section. As used in this subsection, the term "consultant" may refer to an individual or a business entity such as a corporation, a partnership, or a limited liability company. The roles and responsibilities of the Department, the consultant, and the LMEs are more fully explained in subsection (c) of this section. Funds not expended during the 2006‑2007 fiscal year shall not revert to the General Fund but shall remain available for the purposes outlined in this subsection.
SECTION 10.26.(c) The Department of Health and Human Services shall hire a consultant to assist LMEs to carry out the requirements of this section. In addition to any other factors the Department determines are relevant when selecting the consultant, the Department shall take into consideration whether an applicant has prior experience evaluating crisis services at a local, regional, and statewide level, prior experience assisting State and local public agencies develop and implement crisis services, and the ability to implement its responsibilities within the time frames established under this section.
The consultant shall do all of the following:
(1) Develop a model for a continuum of crisis services for an urban area and for a rural area. The model shall outline how an LME, or a group of LMEs, can develop over a period of time 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, regional crisis facilities, inpatient crisis and transportation. Options for voluntary admissions to a secured facility shall 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 shall include at least one option in addition to admission to a State facility. These models shall be the first deliverable under the consultant's contract.
(2) Review the findings and recommendations regarding crisis services developed by the Department as part of the long‑range plan required under Section 10.24 of S.L. 2005‑276. The consultant shall use this information and any other information it determines to: identify local and regional gaps in crisis services; identify options for providing those services; assist LMEs with developing and implementing a plan to provide a continuum of crisis services; and maintain transparency and accountability for the use of funds appropriated under this section.
(3) Designate appropriate groupings of LMEs for the development of regional crisis facilities. As used in this section, the term "regional crisis facility" means a facility‑based crisis unit that serves an area that may be larger than the catchment area of a single LME. The consultant shall consult with LMEs in determining the grouping of LMEs for regional crisis facilities. The consultant shall also take into consideration geographical factors, prior LME groupings and partnerships, and existing community facilities. Each LME shall participate in the regional grouping established by the consultant in order to be eligible to receive funding under this section.
The consultant shall work with each regional group to determine whether a facility‑based crisis center is needed in that region and whether one would be financially sustainable on a long‑term basis. If the regional group and the consultant determine that a regional crisis facility is needed and sustainable, the regional group shall attempt to secure those services through a community hospital or other community facility first.
(4) Assist LMEs to develop a plan to implement a continuum of local crisis services. The plan shall be consistent with the models developed by the consultant under subdivision (1) of this subsection and shall address any gaps in crisis services identified by the study required under Section 10.24 of S.L. 2005‑276. The plan for a continuum of local crisis services may be combined with a plan for the implementation of a regional crisis facility.
SECTION 10.26.(d) The Department may allocate up to three percent (3%) of the funds appropriated under subsection (a) of this section to LMEs to assist them with the cost of developing their crisis services plans. Each LME shall submit its crisis services plan to the consultant and to the Department for review no later than March 1, 2007. The plan shall take into consideration all other sources of funds in addition to the funds appropriated under this section. The consultant and the Department shall review the plans to determine whether they meet all the requirements of this section. If the plan meets all the requirements of this section, the LME shall receive funding to implement the plan.
SECTION 10.26.(e) LMEs shall report monthly to the consultant and to the Department regarding the use of the funds, whether there has been a reduction in the use of State psychiatric hospitals for acute admissions, and any remaining gaps in local and regional crisis services. The consultant and the Department shall report quarterly to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Fiscal Research Division, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services regarding each LME's proposed and actual use of the funds appropriated under this section. The reporting requirement under this subsection shall expire July 1, 2008.
MH/DD/SA SERVICES CONSULTANT TASKS
SECTION 10.28. Independent consultants hired by the Department of Health and Human Services from funds appropriated in this act for consultation purposes shall undertake the following tasks:
(1) Assist the Department with the strategic planning necessary to develop the revised State Plan as required under G.S. 122C‑102. The State Plan shall be coordinated with local and regional crisis service plans by area authorities and county programs.
(2) Study and make recommendations to increase the capacity of the Department to implement system reform successfully and in a manner that maintains strong management functions by area authorities and county programs at the local level.
(3) Assist the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to work with area authorities and county programs to:
a. Develop and implement five to ten critical performance indicators to be used to hold area authorities and county programs accountable for managing the mental health, developmental disabilities, and substance abuse services system. The performance system indicators shall be implemented no later than six months after the consultant's contract is awarded and in no event later than July 1, 2007.
b. Standardize the utilization management functions for Medicaid and non‑Medicaid services and for the review and approval of person‑centered plans.
c. Develop area authorities' and county programs' expertise to assume utilization management for Medicaid services. The goal shall be to have a portion of the area authorities and county programs assume that function beginning July 1, 2007, and the remainder to assume the function no later than July 1, 2009.
d. Implement other uniform procedures for the management functions of area authorities and county programs.
(4) Provide technical assistance and oversight to private service providers, area authorities, and county programs to ensure that best practices and new services are being delivered with fidelity to the service definition model.
INDEPENDENT‑ AND SUPPORTIVE‑LIVING APARTMENTS INITIATIVE
SECTION 10.30. The independent and supportive living apartments for persons with disabilities constructed from funds appropriated in this act for that purpose shall be affordable to persons with incomes at the Supplemental Security Income (SSI) level. If the North Carolina Housing Finance Agency is able to finance the apartments for less than the amount appropriated under this section, any remaining funds, as well as any interest earned on the amount appropriated, may be used to finance additional apartments, group homes, and transitional housing for individuals with disabilities.
LOCAL MANAGEMENT ENTITY ADMINISTRATIVE FUNCTIONS
SECTION 10.32. The Department of Health and Human Services shall recalculate local management entity (LME) systems management allocations for fiscal year 2006‑2007 to include funds for each LME to implement the following:
(1) 24‑hour, seven days a week screening, triage, and referral;
(2) Provider endorsement, monitoring, technical assistance, capacity development, and quality control;
(3) Authorization of all State‑funded services;
(4) Care coordination, including the direct monitoring of the effectiveness of person‑center plans;
(5) Community collaboration and consumer affairs; and
(6) Financial management and accountability and information management.
DISTRIBUTION OF MENTAL HEALTH, SUBSTANCE ABUSE and crisis SERVICES FUNDS
SECTION 10.33A.(a) Funds appropriated in this act for mental health services, substance abuse services, and crisis services shall be allocated to local management entities such that each local management entity receives a percentage of the total allocation that is equal to that local management entity's percentage of the State's total population that is below the federal poverty level.
SECTION 10.33A.(b) Funds allocated pursuant to subsection (a) of this section for substance abuse services may be used to replace lost federal funding for substance abuse services in drug treatment courts, provided that such funds shall be allocated only in the amount of lost funding and shall not exceed two million dollars ($2,000,000). Before allocating these funds, the Department of Health and Human Services shall verify the loss of federal funding for substance abuse services in drug treatment courts and the amount of federal funds lost.
SECTION 10.33A.(c) The local management entity shall consult with the local drug treatment court team and shall select a treatment provider that meets all provider qualification requirements and the drug treatment court's needs. A single treatment provider may be chosen for non‑Medicaid‑eligible participants only. A single provider may be chosen who can work with all of the non‑Medicaid‑eligible drug treatment court participants in a single group.
SECTION 10.33A.(d) The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall study whether the target population for substance abuse services needs to be expanded to include more participants of the drug treatment courts, and shall report its findings 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 April 1, 2007.
ACCESS TO PSYCHIATRIC SerVICES
SECTION 10.33G. Funds appropriated in this act to increase access to psychiatric services for the 2006‑2007 fiscal year may be used for the following purposes:
(1) To cover non‑fee‑for‑service billable functions that psychiatrists perform, including incentives to increase the participation of psychiatrists in new best‑practice models of service such as Community Treatment Teams;
(2) Designing graduate medical education incentives to influence the training of psychiatrists to produce more psychiatrists interested in working with public sector communities;
(3) Designing programs for loan forgiveness and recruitment incentives for new psychiatrists serving Medicaid and other State‑funded consumers.
Psychiatric hospital debt Service
SECTION 10.33H.(a) G.S. 143‑15.3D(c) reads as rewritten:
"(c) Notwithstanding
G.S. 143‑18, any nonrecurring savings in State appropriations realized
from the closure of any State psychiatric hospitals that are in excess of the
cost of operating and maintaining a new State psychiatric hospital shall not
revert to the General Fund but shall be placed in the Trust Fund and shall be
used for the purposes authorized in this section. Notwithstanding G.S. 143‑18,
recurring savings realized from the closure of any State psychiatric hospitals
shall not revert to the General Fund but shall be used for the payment of
debt service on financing contract indebtedness authorized pursuant to Article
9 of Chapter 142 of the General Statutes for the construction of a new State
psychiatric hospital. Any remainder not needed for this debt service shall be
credited to the Department of Health and Human Services to be used only for the
purposes of subsections (b)(2) and (b)(3) of this section."
SECTION 10.33H.(b) This section becomes effective July 1, 2007. Debt service authorized pursuant to Article 9 of Chapter 142 of the General Statutes for the construction of a new State psychiatric hospital shall be paid with funds from the General Fund. Any funds budgeted for debt service on the new psychiatric hospital before July 1, 2007, shall be redirected for purposes authorized under G.S. 143‑15.3D(b)(2) and (b)(3).
USE OF FUNDS IN MENTAL HEALTH TRUST FUND
SECTION 10.33I. Of the funds appropriated in this act for mental health, developmental disabilities, and substance abuse services, the sum of twenty‑four million two hundred five thousand dollars ($24,205,000) in nonrecurring funds for the fiscal year 2006‑2007 shall be deposited to the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs. Of these funds, the sum of nine million two hundred five thousand dollars ($9,205,000) for the 2006‑2007 fiscal year shall be used as follows:
(1) $1,500,000 for mental health services to be distributed to local management entities.
(2) $1,500,000 for substance abuse services to be distributed to local management entities.
(3) $3,000,000 for mental health, developmental disabilities, and substance abuse crisis services.
(4) $2,000,000 to increase access to psychiatric services.
(5) $1,205,000 to provide one‑time operating support for independent‑living apartments. It is the intent of the General Assembly to provide funds in future years for operating support for the 400 independent‑living and supportive‑living apartments as they are constructed and ready for occupation.
SECTION 10.34. Section 10.61(c) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.61.(c) Notwithstanding subsection
(a) of this section, the Department of Health and Human Services shall allocate
up to twenty‑two million dollars ($22,000,000) in federal block grant
funds and State funds appropriated for fiscal years 2004‑20052005‑2006
and 2005‑20062006‑2007 for child care services. These
funds shall be allocated to prevent termination of child care services."
Child Care Funds Matching Requirement
SECTION 10.36. Section 10.60 of S.L. 2005‑276 reads as rewritten:
"SECTION 10.60. No local
matching funds may be required by the Department of Health and Human Services
as a condition of any locality's receiving any Stateits initial
allocation of child care funds appropriated by this act unless federal law
requires a match. This shall not prohibit any locality from spending local
funds for child care services.If the Department reallocates additional
funds above twenty-five thousand dollars ($25,000) to local purchasing agencies
beyond their initial allocation, local purchasing agencies must provide a
twenty-five percent (25%) local match to receive the reallocated funds.
Matching requirements shall not apply when funds are allocated because of a
disaster as defined in G.S. 166A-4(1)."
Require Minimum of Smart Start Funds for Child Care Subsidy
SECTION 10.37. Notwithstanding G.S. 143B‑168.15(g), of the ten million dollars ($10,000,000) appropriated in this act to the North Carolina Partnership for Children, Inc., for the 2006‑2007 fiscal year for local partnership initiatives, a minimum of thirty percent (30%) of the allocation to each local partnership shall be used for child care subsidy. This percentage shall be in addition to the direct services allocation for the 2006‑2007 fiscal year.
SMART START ALLOCATIONS FOR MORE AT FOUR AND TO HOLD HARMLESS LOCAL PARTNERSHIPS
SECTION 10.38. Of the funds appropriated in this act from NC Lottery proceeds to the More at Four Program, the sum of three million dollars ($3,000,000) for the 2006‑2007 fiscal year shall be used by the More at Four Program for a portion of the funds allocated by local partnerships for the More at Four Program. The North Carolina Partnership for Children shall not reduce allocations to local partnerships below the 2005‑2006 allocation because of funds allocated to More at Four under this section.
PART X-A. DEPARTMENT OF AGRICULTURE and consumer services
TIMBER SALES RECEIPTS FOR CAPITAL IMPROVEMENTS
SECTION 10A.1.(a) Section 11.2 of S.L. 2005‑276 reads as rewritten:
"SECTION 11.2. The sum of one million
thirty‑three thousand one hundred dollars ($1,033,100) three
hundred sixty‑nine thousand six hundred dollars ($369,600) shall be
transferred from the Department of Agriculture and Consumer Services' timber
sales capital improvement account in the Department of Agriculture and Consumer
Services as such funds become available during the 2005‑2006 fiscal
year, during the 2006‑2007 fiscal year and used by the
Department for the following capital improvements projects at agricultural
research stations and research farms:stations:
(1) $378,000 for
improvements at the swine facility at the Cherry Research Farm.
(2) $285,500 for
renovation of dairy facilities at the Cherry Research Farm.
(3) $369,600 for
land acquisition and development at the Tidewater Research Station."
SECTION 10A.1.(b) Section 11.3 of S.L. 2005‑276 reads as rewritten:
"SECTION 11.3. From
funds received from the sale of timber that are deposited with the State
Treasurer pursuant to G.S. 146‑30 to the credit of the Department of
Agriculture and Consumer Services in a capital improvement account, the sum of twenty
thousand dollars ($20,000)thirty thousand dollars ($30,000) for the 2006‑2007
fiscal year shall be transferred to the Department of Agriculture and
Consumer Services to be used used, notwithstanding G.S. 146‑30,
by the Department for its plant conservation program under Article 19B of
Chapter 106 of the General Statutes for costs incidental to the acquisition of
land, such as land appraisals, land surveys, title searches, and environmental studies.studies
and for the management of plant conservation program preserves owned by the
Department."
SECTION 10A.1.(c) The sum of five hundred thousand dollars ($500,000) shall be transferred from the Department of Agriculture and Consumer Services' timber sales capital improvement account in the Department of Agriculture and Consumer Services as such funds become available and shall be used by the Department for capital improvements to the grounds and facilities at the Eastern North Carolina Agricultural Center at Williamston.
PART XI. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
CONSERVATION RESERVE ENHANCEMENT PROGRAM
SECTION 11.1. Funds appropriated to the Department of Environment and Natural Resources for the 2006‑2007 fiscal year for the Division of Soil and Water Conservation for the Conservation Reserve Enhancement Program for acquiring conservation easements and leases or for contracts under the Program shall not revert, but shall remain available for these purposes.
SECTION 11.3.(a) Section 12.5 of S.L. 2005‑276, as amended by Section 23 of S.L. 2005‑345, reads as rewritten:
"SECTION 12.5.(a)
Of the funds appropriated in this act to the Department of Environment and
Natural Resources for the Grassroots Science Program, the sum of three million
one hundred ninety‑seven thousand seven hundred sixty‑two dollars
($3,197,762) for the 2005‑2006 fiscal year and the sum of three
million one hundred ninety‑seven thousand seven hundred sixty dollars
($3,197,760) for the 2006‑2007 fiscal year is allocated as grants‑in‑aid
for each fiscal year as follows:
2005‑2006 2006‑2007
Aurora Fossil Museum $59,057 $59,444
Cape Fear Museum $161,007 $159,444
Carolina Raptor Center $112,174 $107,658
Catawba Science Center $133,429 $148,588
Colburn
Gem and Mineral Museum, Inc.Earth Science
Museum, Inc. $74,545 $74,642
Discovery Place $662,865 $646,907
Eastern NC Regional Science Center $50,000 $50,820
Port
Discover: Northeastern North Carolina's $50,000
Center
for Hands‑On Science, Inc.
Fascinate‑U $80,742 $81,792
Granville County Museum Commission,
Inc.–Harris Gallery $56,422 $56,059
Greensboro Children's Museum $135,076 $119,418
The Health Adventure Museum of Pack
Place Education, Arts and
Science Center, Inc. $134,499 $158,058
Highlands Nature Center $79,268 $75,370
Imagination Station $86,034 $84,129
The Iredell Museums, Inc. $61,568
Kidsenses $50,000 $82,007
Museum of Coastal Carolina $74,192 $72,655
The
Natural Science Center of GreensboroGreensboro, Inc. $186,354 $176,051
North Carolina Museum of Life
and Science $379,826 $337,062
Port Discover: Northeastern North Carolina's
Center for Hands‑On Science, Inc. $50,000 $50,087
Rocky Mount Children's Museum $72,254 $68,696
Schiele Museum of Natural History
and Planetarium, Inc. $229,547 $210,764
Sci Works Science Center and
Environmental Park of Forsyth County $146,499 $145,914
Western North Carolina Nature Center $112,879 $104,809
Wilmington Children's Museum $71,093 $65,820
Total $3,197,762 $3,197,760
SECTION 12.5.(b) No later than March 1, 2006, the Department of Environment and Natural Resources shall report to the Fiscal Research Division all of the following information for each museum that receives funds under this section:
(1) The operating budget for the 2004‑2005 fiscal year.
(2) The operating budget for the 2005‑2006 fiscal year.
(3) The total attendance at the museum during the 2005 calendar year.
SECTION 12.5.(c) No later than March 1, 2007, the Department of Environment and Natural Resources shall report to the Fiscal Research Division all of the following information for each museum that receives funds under this section:
(1) The operating budget for the 2005‑2006 fiscal year.
(2) The operating budget for the 2006‑2007 fiscal year.
(3) The total attendance at the museum during the 2006 calendar year."
SECTION 11.3.(b) The Department of Environment and Natural Resources, in consultation with the Fiscal Research Division, shall study the current formula used to calculate the allocations for members of the Grassroots collaborative and shall report no later than January 15, 2007, its findings and any recommendations for revising this formula to be used for the 2007‑2009 fiscal biennium to the Appropriations Subcommittees on Natural and Economic Resources in both the Senate and the House of Representatives.
Coastal recreational fishing Licenses receipts
SECTION 11.5. As reimbursement for the funds appropriated under this act to the Division of Marine Fisheries of the Department of Environment and Natural Resources for the 2006‑2007 fiscal year to establish and support two positions in the Division of Marine Fisheries to implement the coastal recreational fishing license provisions of S.L. 2005‑455, which become effective January 1, 2007, the Marine Fisheries Commission and the Wildlife Resources Commission shall disburse from the Marine Resources Fund to the General Fund the sum of three hundred seventy‑five thousand dollars ($375,000) from receipts from license fees collected during the 2006‑2007 fiscal year.
Emergency Drinking Water Fund Established
SECTION 11.6. Article 21 of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 11. Private Drinking Water Wells.
"§ 143-215.74M. Emergency Drinking Water Fund.
The Emergency Drinking Water Fund is created within the Department. The Emergency Drinking Water Fund may be used to pay for the cleanup of contaminated private drinking water wells and for the provision of alternative drinking water supplies for persons affected by groundwater contamination on a temporary or permanent basis. The Commission shall establish criteria by which the Department is to evaluate applications and disburse funds from this Fund and may adopt any rules necessary to implement this section."
PART XII. DEPARTMENT OF COMMERCE
SECTION 12.1. Section 13.4 of S.L. 2005‑276 reads as rewritten:
"SECTION 13.4.(a)
Funds from the Employment Security Commission Reserve Fund shall be available
to the Employment Security Commission to use as collateral to secure federal
funds and to pay the administrative costs associated with the collection of the
Employment Security Commission Reserve Fund surcharge. The total administrative
costs paid with funds from the Reserve shall not exceed the total
administrative costs paid in fiscal year 2004‑2005.2005‑2006.
SECTION 13.4.(b) There is
appropriated from the Employment Security Commission Reserve Fund to the
Employment Security Commission of North Carolina the sum of six million three
hundred thousand dollars ($6,300,000) for the 2005‑20062006‑2007
fiscal year to be used for the following purposes:
(1) Six million dollars ($6,000,000) for the operation and support of local offices.
(2) Two hundred thousand dollars ($200,000) for the State Occupational Information Coordinating Committee to develop and operate an interagency system to track former participants in State education and training programs.
(3) One hundred thousand dollars ($100,000) to maintain compliance with Chapter 96 of the General Statutes, which directs the Commission to employ the Common Follow‑Up Management Information System to evaluate the effectiveness of the State's job training, education, and placement programs."
ONE NORTH CAROLINA FUND
SECTION 12.2. Section 13.6 of S.L. 2005‑276 reads as rewritten:
"SECTION 13.6.(a) Of
the funds appropriated in this act to the One North Carolina Fund, the
Department of Commerce may use up to three hundred thousand dollars ($300,000)
to cover its expenses in administering the One North Carolina Fund and other
economic development incentive grant programs in the 2005‑20062006‑2007
fiscal year.
SECTION 13.6.(b) Notwithstanding the provisions of
G.S. 143B‑437.71, of the funds appropriated in this act to the One North
Carolina Fund, the Department of Commerce shall allocate one million dollars
($1,000,000) for the 2005‑20062006-2007 fiscal year to
Johnson and Wales University in Charlotte for the purpose of providing
financial assistance to the University."
SECTION 12.3. Section 4 of S.L. 2003‑425 reads as rewritten:
"SECTION 4. Sections 1
and 2 of this act become effective December 31, 2003, with the e‑NC
Authority hereby designated as the successor entity of the Rural Internet
Access Authority that will dissolve on that date, as provided by Section 5 of
S.L. 2000‑149. The remainder of this act is effective when it becomes
law. The e‑NC Authority created in this act is dissolved effective December
31, 2006. December 31, 2011. This act is repealed effective December
31, 2006.December 31, 2011. Part 2F of Article 10 of Chapter 143B of
the General Statutes and G.S. 120‑123(77), as enacted by this act, are
repealed effective December 31, 2006. December 31, 2011."
COUNCIL OF GOVERNMENT FUNDS/ELECTRONIC TRANSFER
SECTION 12.4. Section 13.2(c) of S.L. 2005‑276 reads as rewritten:
ADVANCED VEHICLE RESEARCH CENTER /FUNDS SHALL NOT REVERT
SECTION 12.5. Section 13.8A of S.L. 2005‑276 reads as rewritten:
"SECTION 13.8A.(a) There is established in the Office of the State Budget and Management a reserve to be known as the Advanced Vehicle Research Center Reserve. Funds from the Reserve shall not be expended or transferred except in accordance with the provisions of this section.
SECTION 13.8A.(b) Of the
funds appropriated by this act to the Advanced Vehicle Research Center Reserve,Reserve,
and the funds available in the Reserve on June 30, 2006, as provided in
subsections (g) and (h) of this section, the Office of State Budget and
Management may transfer in up to four installments the sum of seven million
five hundred thousand dollars ($7,500,000)fifteen million dollars
($15,000,000) for the 2005‑20062006-2007 fiscal year to
the Department of Commerce to be allocated to the Advanced Vehicle Research
Center of North Carolina, Inc., (Center) when the Office of State Budget and Management,
in consultation with the Department of Commerce, determines the Center has
completed goals and projects consistent with the Center's business plan. The
goals and projects shall include the following:
(1) The Center has obtained legal title to the property on which the Advanced Vehicle Research Center will be built.
(2) The Center has determined and provided for the critical infrastructure needed to support the Advanced Vehicle Research Center.
(3) The Center has entered into a contract for the use and operation of a testing facility that will create new private sector jobs in Tier 1 or Tier 2 counties.
SECTION 13.8A.(c) The Center shall file with the Office of State Budget and Management and the Department of Commerce a copy of the Center's policy addressing conflicts of interest that may arise involving the Center's management employees and the members of its board of directors or other governing body before funds may be allocated to the Center. The policy shall address situations in which any of these individuals may directly or indirectly benefit, except as the Center's employees or members of the board or other governing body, from the Center's disbursing of State funds, and shall include actions to be taken by the entity or the individual, or both, to avoid conflicts of interest and the appearance of impropriety.
SECTION 13.8A.(d) By December
31, 2005,December 31, 2006, and April 30, 2006,April 30,
2007, the Center shall report to the Governor, the Joint Legislative
Commission on Governmental Operations, and the Fiscal Research Division the
following information: (i) fiscal year 2005‑20062006‑2007
projects, objectives, and accomplishments; and (ii) fiscal year 2005‑2006
itemized expenditures and fund sources. The April 30, 2006,April 30,
2007, report shall also contain the following: (i) fiscal year 2006‑20072007‑2008
planned projects, objectives, and accomplishments; and (ii) fiscal year 2006‑2007
estimated expenditures and fund sources.
SECTION 13.8A.(e) The Center shall provide to the Governor, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division: (i) a copy of the Center's annual audited financial statement within 30 days of issuance of the statement; and (ii) a copy of the Center's IRS Form 990.
SECTION 13.8A.(f) The Center shall provide a report containing detailed budget information to the Office of State Budget and Management in the same manner as State departments and agencies in preparation for biennium budget requests. Specific salary information will be provided upon written request by the Chairmen of the Joint Legislative Commission on Governmental Operations or the Chairmen of the House Appropriations Committee on Environment, Health, and Natural Resources and the Chairman of the Senate Appropriations Committee on Natural and Economic Resources.
SECTION 13.8A.(g) Funds appropriated to the Advanced Vehicle Research Center Reserve for the 2005‑2006 fiscal year for the Advanced Vehicle Research Center of North Carolina, Inc., that are unexpended and unencumbered as of June 30, 2006, shall not revert to the General Fund on June 30, 2006, but shall remain available in the Reserve.
SECTION 13.8A.(h) Subsection (g) of this section becomes effective June 30, 2006."
WANCHESE SEAFOOD INDUSTRIAL PARK/OREGON INLET FUNDS
SECTION 12.6. Section 13.1 of S.L. 2005‑276 reads as rewritten:
"SECTION 13.1.(a) Funds
appropriated to the Department of Commerce for the 2004‑20052005‑2006
fiscal year for the Wanchese Seafood Industrial Park that are unexpended and
unencumbered as of June 30, 2005,June 30, 2006, shall not revert
to the General Fund on June 30, 2005,June 30, 2006, but shall
remain available to the Department to be expended by the Wanchese Seafood
Industrial Park for operations, maintenance, repair, and capital improvements
in accordance with Article 23C of Chapter 113 of the General Statutes.
SECTION 13.1.(b) Funds
appropriated to the Department of Commerce for the 2004‑20052005‑2006
fiscal year for the Oregon Inlet Project that are unexpended and unencumbered
as of June 30, 2005,June 30, 2006, shall not revert to the
General Fund on June 30, 2005.June 30, 2006.
SECTION 13.1.(c) This
section becomes effective June 30, 2005.June 30, 2006."
DEPARTMENT OF COMMERCE/REPORT ON AGRIBUSINESS FUNDS
SECTION 12.7.(a) The Department of Commerce (Department) shall report on all funds available for companies or organizations designed to promote agribusiness in North Carolina. The report shall include the following: (i) information on all Department economic incentive funds, including Commerce State Aid funds; and (ii) information on the number of agribusinesses and organizations that applied for State funds through the Department or other organizations, including the number of requests for funds, the amount of funds requested, and whether the requests were awarded or denied.
SECTION 12.7.(b) In the report, the Department shall make recommendations for the development of economic incentive programs designed specifically for agribusinesses. The report shall include a plan to implement the programs recommended and the estimated cost of the programs. In determining the estimated cost of the programs, the Department shall consider and include all sources of funding, including federal, State, local, and grant funds.
SECTION 12.7.(c) The Department shall collaborate with the Department of Agriculture and Consumer Services, the Rural Economic Development Center, Inc., and the University System, in preparing the report.
SECTION 12.7.(d) The Department shall submit the report to the House Appropriations Committee on Environment, Health, and Natural Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division no later than May 1, 2007.
PART XIII. RESERVED
COLLECTION OF WORTHLESS CHECK FUNDS
SECTION 14.1. Notwithstanding the provisions of G.S. 7A‑308(c), the Judicial Department may use any balance remaining in the Collection of Worthless Checks Fund on June 30, 2006, for the purchase or repair of office or information technology equipment during the 2006‑2007 fiscal year. Prior to using any funds under this section, the Judicial Department shall report to the Joint Legislative Commission on Governmental Operations and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety on the equipment to be purchased or repaired and the reasons for the purchases.
SECTION 14.2. The Judicial Department may use up to the sum of one million two hundred fifty thousand dollars ($1,250,000) from funds available to the Department to provide the State match needed in order to receive grant funds. Prior to using funds for this purpose, the Department shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Commission on Governmental Operations on the grants to be matched using these funds.
PROVIDE ADDITIONAL ASSISTANT DISTRICT ATTORNEYS
SECTION 14.3.(a) Effective October 1, 2006, G.S. 7A‑60(a1) reads as rewritten:
"(a1) The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full‑time assistant district attorneys set forth in the following table:
No. of Full‑Time
Prosecutorial Asst. District
District Counties Attorneys
1 Camden, Chowan, Currituck, 10 11
Dare, Gates, Pasquotank,
Perquimans
2 Beaufort,
Hyde, Martin, 6 7
Tyrrell, Washington
3A Pitt 9
11
3B Carteret,
Craven, Pamlico 10 11
4 Duplin,
Jones, Onslow, 14 16
Sampson
5 New
Hanover, Pender 14 16
6A Halifax 4 5
6B Bertie,
Hertford, 4 5
Northampton
7 Edgecombe,
Nash, Wilson 16 18
8 Greene,
Lenoir, Wayne 11 13
9 Franklin,
Granville, 11 12
Vance, Warren
9A Person,
Caswell 4 5
10 Wake 31
38
11 Harnett,
Johnston, Lee 14 16
12 Cumberland 18 21
13 Bladen,
Brunswick, Columbus 11 12
14 Durham 13 15
15A Alamance 8
10
15B Orange, Chatham 7 9
16A Scotland, Hoke 5 6
16B Robeson 10
13
17A Rockingham 5
6
17B Stokes,
Surry 5 7
18 Guilford 27 30
19A Cabarrus 6
8
19B Montgomery,
Moore, Randolph 11 12
19C Rowan 5
7
20 Anson,
Richmond, 15 18
Stanly, Union
21 Forsyth 17
20
22 Alexander,
Davidson, Davie, 16 20
Iredell
23 Alleghany,
Ashe, Wilkes, 5 7
Yadkin
24 Avery,
Madison, Mitchell, 4 6
Watauga, Yancey
25 Burke,
Caldwell, Catawba 15 18
26 Mecklenburg 36 49
27A Gaston 12
14
27B Cleveland, 9 10
Lincoln
28 Buncombe 11
13
29 Henderson,
McDowell, Polk, 11 13
Rutherford, Transylvania
30 Cherokee,
Clay, Graham, 9 11
Haywood, Jackson, Macon,
Swain."
SECTION 14.3.(b) Effective January 1, 2007, G.S. 7A‑60(a1), as amended by subsection (a) of this section and by Section 14.2(l) of S.L. 2005-276, reads as rewritten:
"(a1) The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full‑time assistant district attorneys set forth in the following table:
No. of Full‑Time
Prosecutorial Asst. District
District Counties Attorneys
1 Camden, Chowan, Currituck, 11
Dare, Gates, Pasquotank,
Perquimans
2 Beaufort, Hyde, Martin, 7
Tyrrell, Washington
3A Pitt 11
3B Carteret, Craven, Pamlico 11
4 Duplin, Jones, Onslow, 16
Sampson
5 New Hanover, Pender 16
6A Halifax 5
6B Bertie, Hertford, 5
Northampton
7 Edgecombe, Nash, Wilson 18
8 Greene, Lenoir, Wayne 13
9 Franklin, Granville, 12
Vance, Warren
9A Person, Caswell 5
10 Wake 38
11 Harnett, Johnston, Lee 16
12 Cumberland 21
13 Bladen, Brunswick, Columbus 12
14 Durham 15
15A Alamance 10
15B Orange, Chatham 9
16A Scotland, Hoke 6
16B Robeson 13
17A Rockingham 6
17B Stokes, Surry 7
18 Guilford 30
19A Cabarrus 8
19B Montgomery, Moore, Randolph 12
19C Rowan 7
20A Anson,
Richmond, 8 10
Stanly
20B Union 7
8
21 Forsyth 20
22 Alexander, Davidson, Davie, 20
Iredell
23 Alleghany, Ashe, Wilkes, 7
Yadkin
24 Avery, Madison, Mitchell, 6
Watauga, Yancey
25 Burke, Caldwell, Catawba 18
26 Mecklenburg 49
27A Gaston 14
27B Cleveland, 10
Lincoln
28 Buncombe 13
29A McDowell,
Rutherford 5 6
29B Henderson, Polk, Transylvania 6 7
30 Cherokee, Clay, Graham, 11
Haywood, Jackson, Macon,
Swain."
ADDITIONAL DISTRICT COURT JUDGESHIPS
SECTION 14.4.(a) G.S. 7A‑133(a) reads as rewritten:
"(a) Each district court district shall have the numbers of judges as set forth in the following table:
District Judges County
1 5 Camden
Chowan
Currituck
Dare
Gates
Pasquotank
Perquimans
2 4 Martin
Beaufort
Tyrrell
Hyde
Washington
3A 5 Pitt
3B 5
6 Craven
Pamlico
Carteret
4 8 Sampson
Duplin
Jones
Onslow
5 8 New Hanover
Pender
6A 2 Halifax
6B 3 Northampton
Bertie
Hertford
7 7 Nash
Edgecombe
Wilson
8 6 Wayne
Greene
Lenoir
9 4 Granville
(part of Vance
see subsection (b))
Franklin
9A 2 Person
Caswell
9B 2 Warren
(part of Vance
see subsection (b))
10 15
16 Wake
11 8
9 Harnett
Johnston
Lee
12 9 Cumberland
13 6 Bladen
Brunswick
Columbus
14 6
7 Durham
15A 4 Alamance
15B 4
5 Orange
Chatham
16A 3 Scotland
Hoke
16B 5 Robeson
17A 2
3 Rockingham
17B 4 Stokes
Surry
18 12 Guilford
19A 4 Cabarrus
19B 6
7 Montgomery
Moore
Randolph
19C 4
5 Rowan
20A 4 Stanly
Anson
Richmond
20B 3
4 Union
21 9 Forsyth
22 9 Alexander
Davidson
Davie
Iredell
23 4 Alleghany
Ashe
Wilkes
Yadkin
24 4 Avery
Madison
Mitchell
Watauga
Yancey
25 8
9 Burke
Caldwell
Catawba
26 17
18 Mecklenburg
27A 7 Gaston
27B 4
5 Cleveland
Lincoln
28 7 Buncombe
29A 3 McDowell
Rutherford
29B 4 Henderson
Polk
Transylvania
30 5
6 Cherokee
Clay
Graham
Haywood
Jackson
Macon
Swain."
SECTION 14.4.(b) The Governor shall appoint the additional district court judges for Districts 3B, 10, 11, 14, 15B, 17A, 19B, 19C, 20B, 25, 26, 27B, and 30 authorized by this act, and those judges' successors shall be elected in the 2008 election for four‑year terms commencing on January 1, 2009.
SECTION 14.4.(c) This section becomes effective January 15, 2007, except that as to any district court district subject to section 5 of the Voting Rights Act of 1965, it becomes effective January 15, 2007, or the date upon which subsection (a) of this section is approved under section 5 of the Voting Rights Act of 1965, whichever is later.
PROVIDE ADDITIONAL MAGISTRATES/ELIMINATE MAXIMUM ALLOCATION OF MAGISTRATES
SECTION 14.5. G.S. 7A‑133(c) reads as rewritten:
"(c) Each county shall have the numbers of magistrates and additional seats of district court, as set forth in the following table:
Additional
Magistrates Seats of
County Min.
– Max. Court
Camden 1 3
Chowan 2 3
Currituck 1 4
Dare 3 8
Gates 2 3
Pasquotank 3 5
Perquimans 2 4
Martin 4 8
Beaufort 4 8
Tyrrell 1 3
Hyde 2 4
Washington 3 4
Pitt 10 12 Farmville
Ayden
Craven 7 10 Havelock
Pamlico 2 4
Carteret 5
6 8
Sampson 6 8
Duplin 8 11
Jones 2 3
Onslow 8 14
New Hanover 6 11
Pender 4 6
Halifax 9 14 Roanoke
Rapids,
Scotland Neck
Northampton 5 7
Bertie 4 6
Hertford 5 7
Nash 7 10 Rocky Mount
Edgecombe 4 7 Rocky Mount
Wilson 4 7
Wayne 5 12 Mount
Olive
Greene 2
3 4
Lenoir 4 10 La Grange
Granville 3 7
Vance 3 6
Warren 3 5
Franklin 3 7
Person 3 4
Caswell 2 5
Wake 12 21 Apex,
Wendell,
Fuquay‑
Varina,
Wake Forest
Harnett 7 11 Dunn
Johnston 10 12 Benson,
Clayton,
Selma
Lee 4 6
Cumberland 10 19
Bladen 4 6
Brunswick 4 9
Columbus 6 10 Tabor
City
Durham 8 13
Alamance 7
8 11 Burlington
Orange 4 11 Chapel Hill
Chatham 3 9 Siler
City
Scotland 3 5
Hoke 4 5
Robeson 8
9 16 Fairmont,
Maxton,
Pembroke,
Red Springs,
Rowland,
St. Pauls
Rockingham 4 9 Reidsville,
Eden,
Madison
Stokes 2 5
Surry 5 9 Mt.
Airy
Guilford 20 27 High Point
Cabarrus 5 9 Kannapolis
Montgomery 2
3 4
Randolph 5 10 Liberty
Rowan 5 10
Stanly 5 6
Union 4 7
Anson 4 6
Richmond 5 6 Hamlet
Moore 5 8 Southern
Pines
Forsyth 3 15 Kernersville
Alexander 2 4
Davidson 7 10 Thomasville
Davie 2 4
Iredell 4 9 Mooresville
Alleghany 1 2
Ashe 3 4
Wilkes 4 6
Yadkin 3 5
Avery 3 5
Madison 4 5
Mitchell 3 4
Watauga 4 6
Yancey 2 4
Burke 4 7
Caldwell 4 7
Catawba 6 10 Hickory
Mecklenburg 15 28
Gaston 11
12 22
Cleveland 5 8
Lincoln 4 7
Buncombe 6 15
Henderson 4 7
McDowell 3 6
Polk 3 4
Rutherford 6 8
Transylvania 2 4
Cherokee 3 4
Clay 1 2
Graham 2 3
Haywood 5 7 Canton
Jackson 3 5
Macon 3 5
Swain 2 4."
SECTION 14.11. The Director of the Administrative Office of the Courts shall develop (i) proposed policies and procedures for the appointment and payment of foreign language interpreters to be applied uniformly throughout the General Court of Justice and (ii) recommendations regarding the conversion of contractual foreign language interpreter positions to permanent State positions, including whether permanent interpreter positions are more efficient and cost‑effective than contractual positions. On or before February 1, 2007, the Director shall report to the Chairs of the House of Representatives and Senate Appropriations Subcommittees on Justice and Public Safety on the proposed policies and recommendations required by this section.
MONITORING OF COMMUNITY MEDIATION CENTERS
SECTION 14.12. G.S. 7A‑38.6(a) reads as rewritten:
"(a) All community mediation centers currently receiving State funds shall report annually to the Mediation Network of North Carolina on the program's funding and activities, including:
(1) Types of dispute settlement services provided;
(2) Clients receiving each type of dispute settlement service;
(3) Number and type of referrals received, cases actually mediated (identified by docket number), cases resolved in mediation, and total clients served in the cases mediated;
(4) Total program funding and funding sources;
(5) Itemization of the use of funds, including operating expenses and personnel;
(6) Itemization of the use of State funds appropriated to the center;
(7) Level of volunteer activity; and
(8) Identification of future service demands and budget requirements.
The Mediation Network of North Carolina shall compile and summarize the information provided pursuant to this subsection and shall provide the information to the Chairs of the House of Representatives and Senate Appropriations Committees and the Chairs of the House of Representatives and Senate Appropriations Subcommittees on Justice and Public Safety by February 1 of each year.
The Mediation Network of North Carolina shall also submit a copy of its report to the Administrative Office of the Courts. The receipt and review of this report by the Administrative Office of the Courts shall satisfy any program monitoring, evaluation, and contracting requirements imposed on the Administrative Office of the Courts by G.S. 143‑6.2 and any rules adopted under that section."
INDIGENT DEFENSE SERVICES/STATE MATCH FOR GRANTS
SECTION 14.14. The Office of Indigent Defense Services may use a sum up to fifty thousand dollars ($50,000) from funds available to provide the State matching funds needed to receive grant funds. Prior to using funds for this purpose, the Office shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Commission on Governmental Operations on the grants to be matched using these funds.
OFFICE OF INDIGENT DEFENSE SERVICES EXPANSION FUNDS
SECTION 14.15. Section 14.11 of S.L. 2005‑276, as amended by Section 28 of S.L. 2005‑345, reads as rewritten:
"SECTION 14.11. The
Judicial Department, Office of Indigent Defense Services, may use up to the
sum of one million sixty‑nine thousand six hundred forty‑five
dollars ($1,069,645) in appropriated funds during the 2005‑2006 fiscal
year and up to the sum of one million twenty‑three thousand one
hundred thirty‑five dollars ($1,023,135) two million one hundred
eighteen thousand five hundred eighty dollars ($2,118,580) in appropriated
funds during the 2006‑2007 fiscal year (i) for the expansion of existing
offices currently providing legal services to the indigent population under the
oversight of the Office of Indigent Defense Services by creating up to 10 20
new attorney positions and five 10 new support staff
positions; and (ii) to create up to two new assistant public defender positions
and one new support staff position in the First Defender District and up to one
new assistant public defender position in Defender District 3A, for the purpose
of representing indigent persons eligible for the appointment of counsel in
Superior Court District 2 and District Court District 2. These funds may be
used for salaries, benefits, equipment, and related expenses. Prior to using
funds for this purpose, the Office of Indigent Defense Services shall report to
the Chairs of the House and the Senate Appropriations Subcommittees on Justice
and Public Safety on the proposed expansion."
REVIEW OF OFFICE OF INDIGENT DEFENSE SERVICES
SECTION 14.16. The State Auditor shall conduct an analysis of the fee payment practices of the Office of Indigent Defense Services and make recommendations for process improvements in payment of fee applications, including recommendations regarding automation. The State Auditor shall report the results of this analysis and the recommendations resulting from it to the Chairs of the House and Senate Appropriations Subcommittees on Justice and Public Safety by March 1, 2007.
INCREASE THE UNIFORM FEES PAID TO JURORS
SECTION 14.17. G.S. 7A‑312 reads as rewritten:
"§ 7A‑312. Uniform fees for jurors; meals.
A juror in the General Court of
Justice including a petit juror, or a coroner's juror, but excluding a grand
juror, shall receive twelve dollars ($12.00) per day, for the first
day of service and twenty dollars ($20.00) per day afterwards, except that
if any person serves as a juror for more than five days in any 24‑month
period, the juror shall receive thirty dollars ($30.00) forty dollars
($40.00) per day for each day of service in excess of five days. A grand
juror shall receive twelve dollars ($12.00) twenty dollars ($20.00)
per day. A juror required to remain overnight at the site of the trial shall be
furnished adequate accommodations and subsistence. If required by the presiding
judge to remain in a body during the trial of a case, meals shall be furnished
the jurors during the period of sequestration. Jurors from out of the county
summoned to sit on a special venire shall receive mileage at the same rate as
State employees."
funding to increase mileage reimbursement
SECTION 14.18. In view of the increase in fuel prices and the limits on travel funds in the Judicial Department, the Administrative Office of the Courts may use up to five hundred thousand dollars ($500,000) in funds available during the 2006‑2007 fiscal year to allow for an increase in the mileage reimbursement rate paid to Judicial Department employees from the current rate of thirty‑seven cents (37¢) per mile to the maximum allowable under G.S. 138‑6(a)(1).
DIVIDE PROSECUTORIAL DISTRICT 19B into districts 19B and 19D
SECTION 14.19.(a) Effective January 15, 2007, G.S. 7A‑60(a1), as amended by Section 14.3 of this act, reads as rewritten:
"(a1) The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full‑time assistant district attorneys set forth in the following table:
No. of Full‑Time
Prosecutorial Asst. District
District Counties Attorneys
1 Camden, Chowan, Currituck, 11
Dare, Gates, Pasquotank,
Perquimans
2 Beaufort, Hyde, Martin, 7
Tyrrell, Washington
3A Pitt 11
3B Carteret, Craven, Pamlico 11
4 Duplin, Jones, Onslow, 16
Sampson
5 New Hanover, Pender 16
6A Halifax 5
6B Bertie, Hertford, 5
Northampton
7 Edgecombe, Nash, Wilson 18
8 Greene, Lenoir, Wayne 13
9 Franklin, Granville, 12
Vance, Warren
9A Person, Caswell 5
10 Wake 38
11 Harnett, Johnston, Lee 16
12 Cumberland 21
13 Bladen, Brunswick, Columbus 12
14 Durham 15
15A Alamance 10
15B Orange, Chatham 9
16A Scotland, Hoke 6
16B Robeson 13
17A Rockingham 6
17B Stokes, Surry 7
18 Guilford 30
19A Cabarrus 8
19B Montgomery,
Moore, Randolph 12 8
19C Rowan 7
19D Moore 4
20A Anson, Richmond, 10
Stanly
20B Union 8
21 Forsyth 20
22 Alexander, Davidson, Davie, 20
Iredell
23 Alleghany, Ashe, Wilkes, 7
Yadkin
24 Avery, Madison, Mitchell, 6
Watauga, Yancey
25 Burke, Caldwell, Catawba 18
26 Mecklenburg 49
27A Gaston 14
27B Cleveland, 10
Lincoln
28 Buncombe 13
29A McDowell, Rutherford 6
29B Henderson, Polk, Transylvania 7
30 Cherokee, Clay, Graham, 11
Haywood, Jackson, Macon,
Swain."
SECTION 14.19.(b) The district attorney position established for District 19B by subsection (a) of this section shall be filled by the district attorney currently serving District 19B who resides in Randolph County. The district attorney position established for District 19D by subsection (a) of this section shall be filled by appointment of the Governor for the remainder of the term expiring January 1, 2009. A district attorney for District 19D shall be elected in 2008 for a four‑year term commencing January 1, 2009.
SECTION 14.19.(c) The eight assistant district attorney positions for District 19B under subsection (a) of this section shall be filled by eight assistant district attorneys currently serving Montgomery and Randolph Counties in District 19B. The four assistant district attorney positions for District 19D under subsection (a) of this section shall be filled by four assistant district attorneys currently serving Moore County in District 19B.
SECTION 14.19.(d) This section becomes effective January 15, 2007.
PART XV. DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION
SECTION 15.1. Section 16.3 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.3.(a) Project Challenge North Carolina, Inc., shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee by April 1 each year on the operation and the effectiveness of its program in providing alternative dispositions and services to juveniles who have been adjudicated delinquent or undisciplined. The report shall include information on:
(1) The source of referrals for juveniles.
(2) The types of offenses committed by juveniles participating in the program.
(3) The amount of time those juveniles spend in the program.
(4) The number of juveniles who successfully complete the program.
(5) The number of juveniles who commit additional offenses after completing the program.
(6) The program's budget and expenditures, including all funding sources.
SECTION 16.3.(b) The Juvenile Assessment Center shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee on the effectiveness of the Center by April 1 each year. The report shall include information on the number of juveniles served and an evaluation of the effectiveness of juvenile assessment plans and services provided as a result of these plans. In addition, the report shall include information on the Center's budget and expenditures, including all funding sources.
SECTION 16.3.(c)
Communities in Schools shall report to the Chairs of the Senate and House of
Representatives Appropriations Subcommittees on Justice and Public Safety, the
Joint Legislative Commission on Governmental Operations, the Joint
Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee,
and the Joint Legislative Education Oversight Committee by April 1 each year on
the operation and effectiveness of its program. The report shall include
information on:
(1) The number of children served.
(2) The number of volunteers used.
(3) The impact on children who have received services from Communities in Schools.
(4) The program's budget and expenditures, including all funding sources."
STATE FUNDS MAY BE USED AS FEDERAL MATCHING FUNDS
SECTION 15.2. Section 16.5 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.5. Funds
appropriated in this act to the Department of Juvenile Justice and Delinquency
Prevention for the 2005‑2006 2006‑2007 fiscal year
may be used as matching funds for the Juvenile Accountability Incentive Block
Grants. If North Carolina receives Juvenile Accountability Incentive Block
Grants, or a notice of funds to be awarded, the Office of State Budget and
Management and the Governor's Crime Commission shall consult with the
Department of Juvenile Justice and Delinquency Prevention regarding the
criteria for awarding federal funds. The Office of State Budget and Management,
the Governor's Crime Commission, and the Department of Juvenile Justice and
Delinquency Prevention shall report to the Appropriations Committees of the
Senate and House of Representatives and the Joint Legislative Commission on
Governmental Operations prior to allocation of the federal funds. The report
shall identify the amount of funds to be received for the 2005‑2006 2006‑2007
fiscal year, the amount of funds anticipated for the 2006‑2007 2007‑2008
fiscal year, and the allocation of funds by program and purpose."
ANNUAL EVALUATION OF COMMUNITY PROGRAMS
SECTION 15.4. Section 16.4 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.4. The Department of Juvenile Justice and Delinquency Prevention shall conduct an evaluation of the Eckerd and Camp Woodson wilderness camp programs, the teen court programs, the program that grants funds to the local organizations of the Boys and Girls Clubs established pursuant to Section 21.10 of S.L. 1999‑237, the Save Our Students program, the Governor's One‑on‑One Programs, and multipurpose group homes. The teen court report shall include statistical information on the number of juveniles served, the number and type of offenses considered by teen courts, referral sources for teen courts, and the number of juveniles that become court‑involved after participation in teen courts. The report on the Boys and Girls Clubs program shall include information on:
(1) The expenditure of State appropriations on the program;
(2) The operations and the effectiveness of the program; and
(3) The number of juveniles served under the program.
In conducting the evaluation of
each of these programs, the Department shall consider whether participation in each
program results in a reduction of court involvement among juveniles. The
Department shall also identify whether the programs are achieving the goals and
objectives of the Juvenile Justice Act, S.L. 1998‑202. The Department
shall report the results of the evaluation to the Joint Corrections, Crime
Control, and Juvenile Justice Oversight Committee, the Chairs of the House
of Representatives and Senate Appropriations Committees Committees,
and the Chairs of the Subcommittees on Justice and Public Safety of the House
of Representatives and Senate Appropriations Committees by March 1 of each
year."
ALTERNATIVES TO JUVENILE COMMITMENT/JUVENILE CRIME PREVENTION COUNCILS
SECTION 15.5. Section 16.11 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.11.(a) Of the funds appropriated in this act to the Department of Juvenile Justice and Delinquency Prevention, the sum of two hundred fifty thousand dollars ($250,000) shall be used to expand Juvenile Crime Prevention Councils demonstration projects designed to reduce commitments to youth development centers. Specifically, the funds shall be awarded to Juvenile Crime Prevention Councils to provide residential and/or community‑based intensive services to juveniles who have been adjudicated delinquent with a level 2 or 3 disposition or who are reentering the community after serving time in a youth development center. The Department shall develop a competitive grant award process to allocate the funds to county Juvenile Crime Prevention Councils. The programs must initiate services to the targeted population no later than March 1, 2006. On June 30, 2006, any funds not awarded for demonstration projects pursuant to this section by the Department shall revert to the General Fund. The Department may award up to four grants to Juvenile Crime Prevention Councils, and no individual grant may exceed one hundred thousand dollars ($100,000).
SECTION 16.11.(b) The Department of Juvenile Justice and Delinquency Prevention shall report to the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee no later than March 1, 2006, on the implementation and award process. The report shall provide a detailed description of the services to be provided by each program, the number and types of juveniles to be served, and the amount awarded to each program.
SECTION 16.11.(c) The Department of Juvenile Justice and Delinquency Prevention shall report to the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety no later than March 1, 2006, and annually thereafter, on the results of the alternatives to commitment demonstration programs funded by Section 16.7 of S.L. 2004‑124. The 2007 report and all annual reports thereafter shall also include projects funded by this section for the 2005‑2006 fiscal year. Specifically, the report shall provide a detailed description of each of the demonstration programs, including the numbers of juveniles served, their adjudication status at the time of service, the services/treatments provided, the length of service, the total cost per juvenile, and the six‑ and 12‑month recidivism rates for the juveniles after the termination of program services.
SECTION 16.11.(d) The requirements of this section apply to all future allocations by the Department of Juvenile Justice and Delinquency Prevention of the funds appropriated to the Department by Section 16.11 of S.L. 2005‑276 and Section 16.7 of S.L. 2004‑124."
REPORTS ON YOUTH DEVELOPMENT CENTERS
SECTION 15.6.(a) Section 16.6 of S.L. 2005‑276 reads as rewritten:
"SECTION 16.6.(a) The Department of Juvenile Justice and Delinquency Prevention shall report December 31, 2005, and quarterly thereafter during the 2005‑2007 biennium to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and to the Joint Corrections, Crime Control, and Juvenile Justice Oversight Committee on the treatment staffing model being piloted at Samarkand and Stonewall Jackson Youth Development Centers. The report shall include a list of total positions at each facility by job class, whether the position is vacant or filled, whether positions were filled from internal employees or new employees, and the training and certification status of each position. The report shall also describe the nature of the treatment program, the criteria for evaluating the program, and how the program is performing in comparison to these criteria. The report shall also describe the training approach to be used to train staff in using treatment methods in youth development centers and provide information on current staff training and staff training planned for the next quarter. The Department shall also develop indicators for evaluating staff performance once the model has been implemented.
SECTION 16.6.(b) The Department of Juvenile Justice and Delinquency Prevention shall report December 31, 2005, and quarterly thereafter during the 2005‑2007 biennium to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Corrections, Crime Control, and Juvenile Justice Oversight Committee on the implementation of the treatment staffing model at Dobbs, Dillon, and Juvenile Evaluation Center Youth Development Centers. The Department shall identify the number of positions reallocated to the new treatment job classes and the source of funding for those positions.
SECTION 16.6.(c) The Department of Juvenile Justice and Delinquency Prevention shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Corrections, Crime Control, and Juvenile Justice Oversight Committee by November 10, 2006, on the final recommended staffing plan for youth development centers for the 2007‑2008 fiscal year. The report shall include:
(1) The latest results of the evaluation of the pilot treatment staffing models at the Samarkand and Stonewall Jackson Youth Development Centers and the progress in implementing the model at other youth development centers.
(2) The total recommended staffing by position classification for each youth development center. Staffing by shift shall be provided for each housing unit as well as justification for the level and type of staff on each shift.
(3) The total cost and cost per bed for each youth development center to implement the staffing model.
(4) The primary basis for the number of staff at each youth development center by classification.
(5) An identification of other states that have implemented a treatment based staffing model, how the staffing patterns compare to the Department of Juvenile Justice and Delinquency Prevention proposal, and any research on the benefits and outcomes of using the treatment based approach in these states."
SECTION 15.6.(b) It is the intent of the General Assembly to consider appropriating funds for new treatment positions at youth development centers only when the report required by subsection (a) of this section is received by the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety.
PART XVI. DEPARTMENT OF CORRECTION
INMATE COSTS/MEDICAL BUDGET FOR PRESCRIPTION DRUGS AND INMATE LAUNDRY SERVICES
SECTION 16.1. Section 17.6 of S.L. 2005‑276 reads as rewritten:
"SECTION 17.6.(a) If the cost of providing food and health care to inmates housed in the Division of Prisons is anticipated to exceed the continuation budget amounts provided for that purpose in this act, the Department of Correction shall report the reasons for the anticipated cost increase and the source of funds the Department intends to use to cover those additional needs to the Joint Legislative Commission on Governmental Operations, the Chairs of the Senate and House of Representatives Appropriations Committees, and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety.
SECTION 17.6.(c)
Notwithstanding the provisions of G.S. 143‑23(a2), the Department of
Correction may use funds available during the 2005‑2006 fiscal year
2005‑2007 biennium for the purchase of clothing and laundry
services for inmates if expenditures are projected to exceed the Department's
budget for clothing and laundry services. The Department shall consult with the
Joint Legislative Commission on Governmental Operations prior to exceeding the
continuation budget amount."
CONVERSION OF CONTRACTED MEDICAL POSITIONS
SECTION 16.2. Section 17.7 of S.L. 2005‑276 reads as rewritten:
"SECTION 17.7.(a) The Department of Correction may convert
contract medical positions to permanent State medical positions if the
Department can document in each request submitted to the Office of State
Budget and Management that the total savings generated will exceed the
total cost of the new positions for each facility. positions. Where
practical, the Department shall convert contract positions to permanent
positions by using existing vacancies in medical positions.
SECTION 17.7.(b) The
Department of Correction shall report by April 1, 2006, April of each
year to the Join