GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
SESSION LAW 2006-66
SENATE BILL 1741
AN ACT to modify the current operations and capital appropriations act of 2005, to increase teacher and state employee pay, to reduce the sales tax rate and the income tax rate APPLICABLE TO MOST SMALL BUSINESSES, to cap the variable wholesale component of the motor fuel tax rate at its current rate, to enact other tax reductions, and to provide for the financing of higher education facilities and psychiatric hospitals and other capital projects.
The General Assembly of North Carolina enacts:
PART i. INtroduction and title of act
INTRODUCTION
SECTION 1.1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.
TITLE OF ACT
SECTION 1.2. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 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 $ 64,160,027
Department of Public Instruction 139,944,021
University of North Carolina – Board of Governors
Appalachian State University 2,189
East Carolina University
Academic Affairs (1,589,622)
Health Affairs 0
Elizabeth City State University (28,887)
Fayetteville State University 42,675
NC Agricultural and Technical University (223,690)
North Carolina Central University (312)
North Carolina School of the Arts 29,159
North Carolina State University
Academic Affairs (3,908,353)
Agricultural Extension 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 138,037,440
Related Educational Programs 0
North Carolina School of Science and Mathematics 52,250
UNC Hospitals at Chapel Hill 0
Total $ 128,657,897
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary $ (55,163,236)
Division of Aging 5,535,886
Division of Blind Services/Deaf/HH 75,000
Division of Child Development 29,061,908
Division of Education Services 996,783
Division of Facility Services 200,000
Division of Medical Assistance (107,550,000)
Division of Mental Health 60,238,357
NC Health Choice 0
Division of Public Health 18,135,242
Division of Social Services 15,682,564
Division of Vocation Rehabilitation 0
Total $ (32,787,496)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 3,583,562
Department of Commerce
Commerce 36,367,483
Commerce State‑Aid 7,203,138
NC Biotechnology Center 2,500,000
Rural Economic Development Center (500,000)
Department of Environment and Natural Resources
Environment and Natural Resources 14,851,962
Clean Water Management Trust Fund 0
Department of Labor 613,894
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 34,911,704
Department of Crime Control and Public Safety 5,954,280
Judicial Department 27,091,712
Judicial Department – Indigent Defense 6,683,129
Department of Justice 4,706,838
Department of Juvenile Justice and Delinquency Prevention 3,454,520
GENERAL GOVERNMENT
Department of Administration $ 3,374,539
Office of Administrative Hearings 281,367
Department of State Auditor 57,564
Office of State Controller 0
Department of Cultural Resources
Cultural Resources 5,421,016
Roanoke Island Commission 0
State Board of Elections 786,620
General Assembly 38,284
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 17,437,500
Department of Insurance
Insurance 455,846
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 $ 688,494,519
Reserve for Teachers' and State Employees' Retirement Rate Adjustment 27,107,200
Retirement System Payback 30,000,000
Information Technology Fund 42,087,229
Reserves for Heating and Cooling Assistance 10,000,000
Reserve for Legal Expenses 1,065,710
Trust Fund for MH/DD/SAS 14,390,000
State Emergency Response Account 20,000,000
Pending Ethics Legislation 422,871
Debt Service
General Debt Service (50,000,000)
Federal Reimbursement 0
TOTAL CURRENT OPERATIONS - GENERAL FUND $ 1,263,312,193
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) Section 2.2(a) of S.L. 2005‑276 is repealed. The General Fund availability used in adjusting the 2006‑2007 budget is shown below:
FY 2006‑2007
Unappropriated Balance from FY 2005‑2006 – 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
Less: Projected Credit to Savings Reserve $ (323,871,747)
Less: Credit to Repairs and Renovation Reserve Account (222,229,189)
Revised Year End Unreserved Credit Balance $ 749,386,052
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 $ 18,555,034,066
Adjustments to Availability: 2006 Session
Adjustment to Baseline Revenue Forecast $ 698,864,995
Reduce Sales Tax from 4.5% to 4.25% – December 1, 2006 (140,100,000)
Reduce Top Personal Income Tax Rate from
8.25% to 8.0% ‑ January 1, 2007 (28,600,000)
Mill Rehabilitation Income Tax Credit (2,800,000)
529 Savings Plan Income Tax Deduction (1,000,000)
Logging Machinery Sales Tax Exemption (2,870,000)
IRC Update (5,100,000)
Joint Filing Options Under Personal Income Tax (1,000,000)
Railroad Cars Tax Exemption (400,000)
Bill Lee Act Wage Standard – Certain Manufacturers (800,000)
Bill Lee Act Adjustment – Clayton Project (800,000)
Extend Aviation Fuel Tax Credit (90,000)
Extend Real Property Donation Tax Credit (100,000)
Small Business Health Insurance Credit of $250 – January 1, 2007 (7,200,000)
Internet Facility Sales Tax Exemption (2,250,000)
Oyster Tax Credit (23,000)
Gas Cap Reserve (367,000)
Reduce Transfer to Highway Trust Fund (195,176,407)
Adjust Transfer from Insurance Regulatory Fund 455,846
Adjust Transfer from Treasurer's Office 281,784
Subtotal Adjustments to Availability: 2006 Session $ 310,926,218
Revised General Fund Availability for 2006‑2007 Fiscal Year $ 18,865,960,284
Less: Total General Fund Appropriations
2006‑2007 Fiscal Year (18,865,960,284)
Unappropriated Balance Remaining $ 0
SECTION 2.2.(b) Notwithstanding G.S. 143‑15.2 and G.S. 143‑15.3A, the State Controller shall transfer two hundred twenty-two million two hundred twenty-nine thousand one hundred eighty-nine dollars ($222,229,189) from the unreserved credit balance to the Repairs and Renovations Reserve Account on June 30, 2006. This subsection becomes effective June 30, 2006.
SECTION 2.2.(c) Funds transferred under this section to the Repairs and Renovations Reserve Account are appropriated for the 2006‑2007 fiscal year to be used in accordance with G.S. 143‑15.3A.
SECTION 2.2.(d) Section 2.2(e) of S.L. 2005‑276 is repealed effective June 30, 2006.
This subsection becomes effective June 30, 2006
SECTION 2.2.(e) Section 2.2.(f) of S.L. 2005‑276 reads as rewritten:
"SECTION 2.2.(f)
Notwithstanding G.S. 105‑187.9(b)(1), the sum to be transferred
under that subdivision for the 2005‑2006 fiscal year is two hundred
fifty million dollars ($250,000,000) and for the 2006‑2007 fiscal
year is two hundred fifty million dollars ($250,000,000).fifty‑five
million dollars ($55,000,000)."
SECTION 2.2.(f) Pursuant to G.S. 105‑187.9(b)(2), the sum to be transferred under that subdivision for the 2006‑2007 fiscal year is two million four hundred eighty‑six thousand six hundred two dollars ($2,486,602).
SECTION 2.2.(g) There is created in the General Fund a Reserve for the Motor Fuels Tax Ceiling. The sum of twenty-two million nine hundred thirty-three thousand dollars ($22,933,000) is hereby transferred from the Savings Reserve Account to the Reserve for the Motor Fuels Tax Ceiling for the 2006-2007 fiscal year
The State Treasurer shall transfer funds reserved to hold harmless the Highway Fund and the Highway Trust Fund from the Reserve for the Motor Fuels Tax Ceiling only if the variable wholesale component of the motor fuel excise tax rate in G.S. 105-449.80 would, without the imposition of the cap imposed by Section 24.3 of this act, exceed twelve and four-tenths cents (12.4¢) a gallon. A transfer required under this subsection must be made on a monthly basis. The amount to be transferred from the Reserve for the Motor Fuels Tax Ceiling to the Highway Fund is the difference between the amount of motor fuel excise tax revenue allocated to the Highway Fund under G.S. 105-449.125 for a month and the amount that would have been allocated to it if the variable wholesale component were not capped at twelve and four-tenths cents (12.4¢) a gallon. The total amount transferred to the Highway Fund under this subsection during fiscal year 2006-2007 may not exceed seventeen million six hundred thousand dollars ($17,600,000). The amount to be transferred from the Reserve for the Motor Fuels Tax Ceiling to the Highway Trust Fund is the difference between the amount of motor fuel excise tax revenue allocated to the Highway Trust Fund under G.S. 105-449.125 for a month and the amount that would have been allocated to it if the variable wholesale component were not capped at twelve and four-tenths cents (12.4¢) a gallon. The total amount transferred to the Highway Trust Fund under this subsection during fiscal year 2006-2007 may not exceed five million seven hundred thousand dollars ($5,700,000).
Funds remaining in the Reserve for the Motor Fuels Tax Ceiling on June 30, 2007, shall revert to the Savings Reserve Account on June 30, 2007.
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 179,731,200
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 1,886,701
Other State Agencies 11,612,420
Reserves and Transfers 28,523,000
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)
PART VI. general provisions
CONTINGENCY AND EMERGENCY FUND ALLOCATIONS
SECTION 6.1.(a) Section 6.2 of S.L. 2005‑276 is repealed.
SECTION 6.1.(b) Funds in the amount of five million dollars ($5,000,000) for the 2006‑2007 fiscal year are appropriated to the Contingency and Emergency Fund. Except as provided in subsection (c) of this section, these funds shall be expended only as:
(1) Required by a court, Industrial Commission, or administrative hearing officer's order;
(2) Required to call out the national guard; or
(3) Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado, if funds for this purpose are not available in the Reserve for Disaster Expenses as authorized in G.S. 166A.
SECTION 6.1.(c) Up to five hundred thousand dollars ($500,000) may be spent for purposes other than those set out in subsection (b) of this section. Notwithstanding any other provision of law authorizing expenditures from the Contingency and Emergency Fund, no more than five hundred thousand dollars ($500,000) of these funds shall be expended for purposes other than those set out in subsection (b) of this section.
AUTHORIZATION TO ESTABLISH RECEIPT‑SUPPORTED POSITIONS
SECTION 6.2. Notwithstanding G.S. 143‑34.1(a1), a department, institution, or other agency of State government may establish receipt‑supported positions authorized in this act upon approval by the Director of the Budget. The Director, if necessary, may establish a receipt‑supported position pursuant to this section at an annual salary amount different from the salary amount set out in this act if (i) funds are available from the proposed funding source and (ii) the alternative salary amount remains within the established salary range grade identified for the job classification of the affected receipt‑supported position established in this act. The Director shall not change the job classifications or increase the number of receipt‑supported positions specified in this act without prior consultation with the Joint Legislative Commission on Governmental Operations.
CONSULTATION NOT REQUIRED PRIOR TO ESTABLISHING OR INCREASING FEES PURSUANT TO THE EXECUTIVE BUDGET ACT
SECTION 6.3. Notwithstanding G.S. 12‑3.1, an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee as authorized or anticipated in the Current Operations and Capital Improvements Appropriations Act of 2006, or in the Senate and House of Representatives Appropriations Committee Reports on the Continuation, Expansion and Capital Budgets, that were distributed in the Senate and House of Representatives Appropriations and Base Budget Committees and used to explain this act.
NO FEE INCREASES WHICH THE GENERAL ASSEMBLY HAS REJECTED
SECTION 6.4. Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑16.7. No fee increases that the General Assembly has rejected.
Notwithstanding any other provision of law, no fee shall be increased if the General Assembly has rejected an increase of that fee for the current fiscal period. For the purpose of this section, the General Assembly has rejected a fee increase when that fee increase is included in a bill which fails a reading, or if the fee increase is included in the version of a bill that passes one house, but the bill is enacted without the fee increase."
STATE EMERGENCY RESPONSE ACCOUNT
SECTION 6.5.(a) G.S. 166A‑6.01(b)(2) reads as rewritten:
"(b) Disaster Assistance Programs – Type I Disaster. – In the event that a Type I disaster is proclaimed, the Governor may make State funds available for disaster assistance in the disaster area in the form of individual assistance and public assistance as provided in this subsection.
…
(2) Public assistance. – State disaster assistance in the form of public assistance grants may be made available to eligible entities located within the disaster area on the following terms and conditions:
a. Eligible entities shall meet the following qualifications:
1. The eligible entity suffers a minimum of ten thousand dollars ($10,000) in uninsurable losses;
2. The eligible entity
suffers uninsurable losses in an amount equal to or exceeding one‑half
percent (0.5%) one percent (1%) of the annual operating budget;
3. For a state of disaster proclaimed pursuant to G.S. 166A‑6(a) after the deadline established by the Federal Emergency Management Agency pursuant to the Disaster Mitigation Act of 2002, P.L. 106‑390, the eligible entity shall have a hazard mitigation plan approved pursuant to the Stafford Act; and
4. For a state of disaster proclaimed pursuant to G.S. 166A‑6(a) after August 1, 2002, the eligible entity shall be participating in the National Flood Insurance Program in order to receive public assistance for flooding damage.
b. Eligible entities shall be required to provide non‑State matching funds equal to twenty‑five percent (25%) of the eligible costs of the public assistance grant.
c. An eligible entity that receives a public assistance grant pursuant to this subsection may use the grant for the following purposes only:
1. Debris clearance.
2. Emergency protective measures.
3. Roads and bridges.
4. Crisis counseling.
5. Assistance with public transportation needs."
SECTION 6.5.(b) Article 1 of Chapter 166A of the General Statutes is amended by adding a new section to read:
"§ 166A‑6.02. State Emergency Response Account.
(a) Account Established. – There is established a State Emergency Response Account as a reserve in the General Fund. Any funds appropriated to the Account shall remain available for expenditure as provided by this section, unless directed otherwise by the General Assembly.
(b) Purpose of Funds. – The Governor may spend funds from the Account for the following purposes:
(1) To cover the start‑up costs of State Emergency Response Team operations for an emergency that poses an imminent threat of a Type I, Type II, or Type III disaster as defined by G.S. 166A‑6.
(2) To cover the cost of first responders to a Type I, Type II, or Type III disaster and any related supplies and equipment needed by first responders that are not provided for under subdivision (1) of this subsection.
All other types of disaster assistance authorized by G.S. 166A‑6 shall continue to be financed by the funds made available under G.S. 166A‑6.01.
(c) Reporting Requirement. – The Governor shall report to the Joint Legislative Commission on Governmental Operations and to the Chairs of the Appropriations Committees of the Senate and House of Representatives on any expenditures from the State Emergency Response Account no later than 30 days after making the expenditure. The report shall include a description of the emergency and type of action taken."
SECTION 6.5.(c) G.S. 166A‑4(1) reads as rewritten:
"(1)(1a) Disaster.
– An occurrence or imminent threat of widespread or severe damage, injury, or
loss of life or property resulting from any natural or man‑made
accidental, military or paramilitary cause."
SECTION 6.5.(d) G.S. 166A‑4 is amended by adding a new subdivision to read:
"(1) Account. – The State Emergency Response Account established in G.S. 166A‑6.02."
INFORMATION TECHNOLOGY FUND AVAILABILITY 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) Additional appropriations are made from the Information Technology Fund established in G.S. 147‑33.72H for the fiscal year ending June 30, 2007, in the amount of forty-six million two hundred ninety-nine thousand four hundred fifty-four dollars ($46,299,454).
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."
FUNDS FOR ENROLLMENT INCREASES
SECTION 6.10. G.S. 143‑11 is amended by adding a new subsection to read:
"(a1) In developing the budget, the Director shall consider the information on student enrollment increases submitted to the Director by the State Board of Education, the State Board of Community Colleges, and the Board of Governors of The University of North Carolina. The Director shall include in the continuation budget the amount the Director proposes to fund for the enrollment increases for public schools, community colleges, and the university system."
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
funds for increased fuel costs
SECTION 6.16. Notwithstanding G.S. 143‑23 or any other provision of law, the State Board of Education may use any funds appropriated for State Aid to Local School Administrative units to cover increases in fuel costs.
Notwithstanding G.S. 143‑23 or any other provision of law, all other State agencies may transfer funds within their budgets, including funds appropriated for salaries and wages, to cover the increases in fuel costs.
PART vII. PUBLIC SCHOOLS
SECTION 7.1.(a) Effective for the 2006‑2007 school year, the Director of the Budget shall transfer from the Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools funds necessary to implement the teacher salary schedules set out in subsection (b) of this section and for longevity in accordance with subsection (c) of this section, including funds for the employer's retirement and social security contributions for all teachers whose salaries are supported from the State's General Fund.
These funds shall be allocated to individuals according to rules adopted by the State Board of Education.
SECTION 7.1.(b) The following monthly salary schedules shall apply for the 2006‑2007 fiscal year to certified personnel of the public schools who are classified as teachers. The schedule contains 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 plus the cost of tuition, fees, and books 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 $3,093 $5,809
School Administrator II $3,283 $6,161
School Administrator III $3,485 $6,536
School Administrator IV $3,625 $6,796
School Administrator V $3,771 $7,071
School Administrator VI $4,001 $7,499
School Administrator VII $4,162 $7,801
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 $4,417 $8,275
Superintendent II $4,689 $8,775
Superintendent III $4,975 $9,310
Superintendent IV $5,280 $9,875
Superintendent V $5,604 $10,477
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 and one-half percent (5.5%), commencing July 1, 2006. The State Board of Education shall allocate these funds to local school administrative units. The local boards of education shall establish guidelines for providing salary increases to these personnel.
NONCERTIFIED PERSONNEL SALARY AND FAIR MINIMUM PAY
SECTION 7.4.(a) The annual salary increase for permanent, full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be five and one-half percent (5.5%), 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 and one-half percent (5.5%).
SECTION 7.4.(c) The State Board of Education may adopt salary ranges for noncertified personnel to support increases of five and one-half percent (5.5%) 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.
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 State Board of Education shall review the incentive award structure described in this section to ensure that extraordinary performance is rewarded. In addition, the Board shall determine whether the relationship between awards for teachers and teacher assistants and the Board's strategic priorities is appropriate. The Board shall provide a preliminary report of its findings and recommendations to the Joint Legislative Education Oversight Committee by December 15, 2006.
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.
DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING
SECTION 7.10. Section 7.8 of S.L. 2005‑276 is amended by adding a new subsection to read:
"SECTION 7.8.(c) Beginning in the 2006‑2007 fiscal year, funds appropriated to a local education agency (LEA) for disadvantaged student supplemental funding (DSSF) shall be allotted based on: (i) the LEA's eligible DSSF population and (ii) the difference between a teacher‑to‑student ratio of 1:21 and the following teacher‑to‑student ratios:
(1) For counties with wealth greater than ninety percent (90%) of the statewide average, a ratio of 1:20.5;
(2) For counties with wealth not less than eighty percent (80%) and not greater than ninety percent (90%) of the statewide average, a ratio of 1:20;
(3) For counties with wealth less than eighty percent (80%) of the statewide average, a ratio of 1:19.5; and
(4) For LEAs receiving DSSF funds in 2005‑2006, a ratio of 1:16. These LEAs shall receive no less than the DSSF amount allotted in 2005‑2006.
For the purpose of this subsection, wealth shall be calculated under the low‑wealth supplemental formula."
SECTION 7.11. Section 7.32 of S.L. 2005‑276 is amended by adding the following new subsections:
"SECTION 7.32.(e) Enrollment fees and tuition for The University of North Carolina courses in which Learn and Earn students are enrolled are allowable uses of these funds. Tuition costs may include laboratory fees assessed to all students enrolled in the course or a similar course.
SECTION 7.32.(f) Textbooks required for college courses in which Learn and Earn students are enrolled may be purchased with these funds.
SECTION 7.32.(g) Payment of fees from these funds by local school administrative units to partnering community colleges and universities are restricted to technology or course fees. Funds appropriated in this act shall not be used to support the cost of athletic or other student activity or campus fees not required by enrollment in a specific course.
SECTION 7.32.(h) The State Board of Education shall allot funds for university enrollment, tuition and fees, and textbooks on the basis of and after verification of the credit hour enrollment of Learn and Earn students in university courses. The State Board of Education shall allot funds for community college fees and textbooks on the basis of and after verification of the credit hour enrollment of Learn and Earn students in community college courses."
SECTION 7.12.(a) Notwithstanding G.S. 143‑23, the State Board of Education may, in consultation with the Office of Information Technology Services, use funds appropriated in this act for NC WISE to create a maximum of 20 positions and incur expenditures necessary to transfer the maintenance and administration of the NC WISE system from the vendor to the Department of Public Instruction.
SECTION 7.12.(b) The Department of Public Instruction shall report on a quarterly basis to the Joint Legislative Education Oversight Committee on the implementation of the NC WISE project.
SECTION 7.13. Funds are appropriated in this act to support the selection and hiring of 100 literacy coaches. The State Board of Education shall allocate these positions to the 100 schools with the lowest average scores on the eighth grade end‑of‑grade reading test over the most recent three years for which data is available.
EXPAND LEA ACCESS TO EDUCATION VALUE ADDED ASSESSMENT SYSTEM (EVAAS)
SECTION 7.14.(a) The State Board of Education shall identify local school administrative units to receive funds for purchasing licenses to EVAAS diagnostic software based on criteria that shall include (i) identified need, (ii) readiness, and (iii) county wealth, as defined in the Low‑Wealth Supplemental Funding Formula. The Board shall identify as many units as possible within funds available for this purpose.
SECTION 7.14.(b) Funds appropriated for EVAAS in the 2005‑2006 fiscal year shall not revert, but shall be carried forward to the 2006‑2007 fiscal year for expenditures for training related to expanding local school administrative units' access to the EVAAS tool. Any such funds not spent by June 30, 2007, shall revert to the General Fund.
SECTION 7.14.(c) This section becomes effective June 30, 2006.
CLARIFY DEFINITION: PUBLIC SCHOOL CAPITAL FUNDS
SECTION 7.15. G.S. 115C‑546.2(d)(2)a. reads as rewritten:
"a. "Effective
county tax rate" means the actual county tax rate rate,
including any countywide supplemental taxes levied for the benefit of public
schools, multiplied by a three‑year weighted average of the most
recent annual sales assessment ratio studies."
NORTH CAROLINA VIRTUAL PUBLIC SCHOOL
SECTION 7.16.(a) The North Carolina Virtual Public School (NCVPS) program shall report to the State Board of Education and shall maintain an administrative office at the Department of Public Instruction
SECTION 7.16.(b) The Director of NCVPS will ensure that course quality standards are established and met and that all e‑learning opportunities offered by State‑funded entities to public school students are consolidated under the NC Virtual Public School Program, eliminating course duplication. The Director shall report on the proposed consolidation and operating plan for 2007‑2008 to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division no later than January 15, 2007. Consolidation will be completed by June 30, 2007. Notwithstanding G.S 143‑23, the State Board of Education may move funds within the budget to implement the consolidation.
SECTION 7.16.(c) Subsequent to course consolidation, the Director will prioritize e‑learning course offerings for students residing in rural and low‑wealth county LEAs, in order to expand available instructional opportunities. First‑available e‑learning instructional opportunities should include courses required as part of the standard course of study for high school graduation and AP offerings not otherwise available.
SECTION 7.16.(d) The State Board of Education shall develop an allotment formula for funding e‑learning, effective in the 2007‑2008 fiscal year. In developing the formula, the Board shall consider, at a minimum, the following:
(1) The number of students in average daily membership (ADM) projected to enroll in e‑learning,
(2) The projected cost of fees for e‑learning courses,
(3) The extent to which projected enrollment in e‑learning courses affects funding required for other allotments that are based on ADM.
SECTION 7.16.(e) Any funds appropriated in this act for the NCVPS program that are not expended in fiscal year 2006‑2007 shall be carried forward for expenditure in fiscal year 2007‑2008. Any such funds that remain unexpended on June 30, 2008, shall revert to the General Fund.
SECTION 7.17. Notwithstanding G.S. 143‑23, the State Board of Education may use monies from the State Public School Fund in 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.
TRANSFER MORE AT FOUR PROGRAM AND OFFICE OF SCHOOL READINESS TO THE DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.18.(a) The More at Four program and the Office of School Readiness are transferred from the Office of the Governor to the Department of Public Instruction effective July 1, 2006. This transfer shall have all of the elements of a Type I transfer, as defined in G.S. 143A‑6. The Office of School Readiness will provide oversight to the More at Four program and other related early childhood and prekindergarten education experiences. An Executive Director for the Office of School Readiness will be appointed by the State Board of Education.
SECTION 7.18.(b) Section 10.67(a) of S.L. 2005‑276 is repealed.
SECTION 7.18.(c) Section 10.67(b) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(b) The
Department of Health and Human Services and the Department of Public
Instruction, with guidance from the Task Force, shall continue the
implementation of the "More at Four" prekindergarten program for at‑risk
four‑year‑olds who are at risk of failure in kindergarten. The
program is available statewide to all counties that choose to participate,
including underserved areas. The goal of the program is to provide quality
prekindergarten services to a greater number of at‑risk children in order
to enhance kindergarten readiness for these children. The program shall be
consistent with standards and assessments established jointly by the Department
of Health and Human Services and the Department of Public Instruction. The
program shall include:
(1) A process and system for identifying children at risk of academic failure.
(2) A process and system for
identifying children who are not being served first priority in formal
early education programs, such as child care, public or private preschools,
Head Start, Early Head Start, early intervention programs, or other such
programs, who demonstrate educational needs, and who are eligible to enter
kindergarten the next school year, as well as children who are underserved.
(3) A curriculum or several
curricula that are research‑based and/or built on sound instructional
theory.recommended by the Task Force. The Task Force will identify and
approve appropriate research‑based curricula. These curricula shall:
(i) focus primarily on oral language and emergent literacy; (ii) engage
children through key experiences and provide background knowledge requisite for
formal learning and successful reading in the early elementary years; (iii)
involve active learning; (iv) promote measurable kindergarten language‑readiness
skills that focus on emergent literacy and mathematical skills; and (v) develop
skills that will prepare children emotionally and socially for kindergarten.
(4) An emphasis on ongoing family involvement with the prekindergarten program.
(5) Evaluation of child
progress through a preassessment and postassessment of children in
the statewide evaluation, as well as ongoing assessment of the children by
teachers.
(6) Guidelines for a system to reimburse local school boards and systems, private child care providers, and other entities willing to establish and provide prekindergarten programs to serve at‑risk children.
(7) A system built upon existing local school boards and systems, private child care providers, and other entities that demonstrate the ability to establish or expand prekindergarten capacity.
(8) A quality‑control
system. Participating providers shall comply with standards and guidelines as
established by the Department of Health and Human Services and the
Department of Public Instruction, and the Task Force. The Department may
use the child care rating system to assist in determining program
participation.
(9) Standards for minimum teacher qualifications. A portion of the classroom sites initially funded shall have at least one teacher who is certified or provisionally certified in birth‑to‑kindergarten education.
(10) A local contribution. Programs must demonstrate that they are accessing resources other than "More at Four".
(11) A system of accountability.
(12) Consideration of the
reallocation of existing funds. In order to maximize current funding and
resources, the Department of Health and Human Services and the
Department of Public Instruction, and the Task Force shall consider the
reallocation of existing funds from State and local programs that provide
prekindergarten‑related care and services."
SECTION 7.18.(d) Section 10.67(c) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(c) The
Department of Health and Human Services Department of Public
Instruction shall implement a plan to expand plan for expansion
of the "More at Four" program standards within existing
resources to include four‑ and five‑star‑rated centers and
schools serving four‑year‑olds and develop guidelines for these
programs. The Department shall analyze guidelines for use of the "More
at Four" funds, State subsidy funds, and Smart Start subsidy funds and
devise a complementary plan for administration of funds for all four‑year‑old
classrooms. The "NC Prekindergarten Program Standards"
initiative shall recognize four‑ and five‑star‑rated
centers that choose to apply and meet equivalent "More at Four"
program standards as high quality pre‑k classrooms. Classrooms meeting
these standards shall, have at a minimum, receive curricula and access
to training and workshops for "More at Four" programs. Whenever
expansion slots are available, these classrooms shall have first priority to
receive them.and be considered along with other "More at Four"
programs for T.E.A.C.H. funding. The Department shall ensure that no individual
receives funding from more than one source for the same purpose or activity
during the same funding period. For purposes of this subsection, sources shall
include T.E.A.C.H., W.A.G.E.$., and T.E.A.C.H. Health Insurance programs for
individual recipients.
The "More at Four"
program shall review the number of slots filled by counties on a monthly basis
and shift the unfilled slots to counties with waiting lists. The shifting of
slots shall occur through December 30, 2005, January 31 of each year,
at which time any remaining funds for slots unfilled shall be used to meet the
needs of the waiting list for subsidized child care."
SECTION 7.18.(e) Section 10.67(d) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(d) The
Department of Health and Human Services, the Department of Public Instruction,
and the Task Force shall submit a report by February 1, 2006 The
Department of Public Instruction shall submit a report by February 1, 2007,
to the Joint Legislative Commission on Governmental Operations, the Joint
Legislative Education Oversight Committee, the Senate Appropriations Committee
on Health and Human Services Education, the House of
Representatives Appropriations Subcommittee on Health and Human Services
Education, and the Fiscal Research Division. This final report shall
include the following:
(1) The number of children participating in the program.
(2) The number of children participating in the program who have never been served in other early education programs, such as child care, public or private preschool, Head Start, Early Head Start, or early intervention programs.
(3) The expected expenditures for the programs and the source of the local match for each grantee.
(4) The location of program sites and the corresponding number of children participating in the program at each site.
(5) Activities
involving Child Find in counties.
(6)(5) A
comprehensive cost analysis of the program, including the cost per child served
by the program.
(7)(6) The plan
for expansion of "More at Four" through existing resources status
of the NC Prekindergarten initiatives as outlined in this section."
SECTION 7.18.(f) Section 10.67(e) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(e) For
the 2005‑2006 and the 2006‑2007 fiscal years, the "More at
Four" program shall establish income eligibility requirements for the
program not to exceed seventy‑five percent (75%) of the State median
income to make the program consistent with the child care subsidy
requirements. Up to twenty percent (20%) of children enrolled may have
family incomes in excess of seventy‑five percent (75%) of median income
if they have other designated risk factors."
SECTION 7.18.(g) Section 10.67(f) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.67.(f) The
"More at Four" program funding shall not supplant any funding for
classrooms serving four‑year‑olds as of the 2003‑2004 2005‑2006
fiscal year. Support of existing four‑year‑old classrooms with "More
at Four" program funding shall be permitted when current funding is
eliminated, reduced or redirected as required to meet other specified federal
or State educational mandates."
SECTION 7.18.(h) Section 10.67(g) of S.L. 2005‑276 is repealed.
SECTION 7.18.(i) G.S. 115C‑242(1) reads as rewritten:
"(1) A school bus may be
used for the transportation of pupils enrolled in and employees in the
operation of the school to which such bus is assigned by the superintendent of
the local school administrative unit. Except as otherwise herein provided, such
transportation shall be limited to transportation to and from such school for
the regularly organized school day, and from and to the points designated by
the principal of the school to which such bus is assigned, for the receiving
and discharging of passengers. No pupil or employee shall be so transported
upon any bus other than the bus to which such pupil or employee has been
assigned pursuant to the provisions of this Article: Provided, that children
enrolled in a Headstart program or any More at Four program which is
housed in a building owned and operated by a local school administrative unit
where school is being conducted may be transported on public school buses, and
any additional costs associated with such so long as the contractual
arrangements shall be incurred by the benefitting Head Start or More at Four
program made cause no extra expense to the State: Provided further,
that children with special needs may be transported to and from the nearest
appropriate private school having a special education program approved by the
State Board of Education if the children to be transported are or have been
placed in that program by a local school administrative unit as a result of the
State or the unit's duty to provide such children with a free appropriate
public education."
ADMINISTRATIVE FUNDING FOR TEACHING FELLOWS PROGRAM
SECTION 7.19.(a) G.S. 115C‑363.23A(f) reads as rewritten:
"(f) All funds appropriated to or otherwise received by the Teaching Fellows Program for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund shall be used for scholarship loans granted under the Teaching Fellows Program. With the prior approval of the General Assembly in the Current Operations Appropriations Act, the revolving fund may also be used for campus and summer program support, and costs related to disbursement of awards and collection of loan repayments.
The 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.
SALARY SUPPLEMENT FOR MATH AND SCIENCE TEACHERS PILOT PROGRAM
SECTION 7.21.(a) Funds in the amount of five hundred fifteen thousand one hundred fifteen dollars ($515,115) are appropriated in this act for a pilot program providing for a salary supplement for newly hired teachers (as defined by the State Board of Education) of mathematics or science at the middle or high school level. The State Board of Education shall develop the pilot program and select three local school administrative units to participate in the pilot program. In selecting the units, the Board shall target low‑performing local school administrative units and take geographical diversity into account. Selected local school administrative units shall use salary supplement funds for newly hired teachers at low‑performing schools.
Each of the pilot units shall receive funds to provide for a salary supplement of fifteen thousand dollars ($15,000) to up to 10 newly hired teachers at the middle or high school level who have nonprovisional certification in and are teaching in one or more of the following areas of teacher certification:
(1) Middle grades mathematics,
(2) Middle grades science,
(3) Mathematics (9‑12),
(4) Science (9‑12),
(5) Earth science (9‑12),
(6) Biology (9‑12),
(7) Physics (9‑12), and
(8) Chemistry (9‑12).
SECTION 7.21.(b) In accordance with G.S. 115C‑325 and by way of clarification, it shall not constitute a demotion as that term is defined in G.S. 115C‑325(a)(4) if:
(1) A teacher who receives a salary supplement pursuant to subsection (a) of this section is reassigned to a school at which there is no such salary supplement;
(2) A teacher who receives a salary supplement pursuant to subsection (a) of this section moves to a different local school administrative unit; or
(3) A teacher receives a salary supplement pursuant to subsection (a) of this section and the salary supplement is subsequently discontinued or reduced.
SECTION 7.21.(c) Funds not needed to pay for salary supplements shall revert to the General Fund.
SECTION 7.21.(d) The State Board of Education shall report to the Joint Legislative Education Oversight Committee on the design of the pilot program prior to implementation. The State Board of Education shall report to the Joint Legislative Education Oversight Committee on the implementation of the pilot program by January 15, 2007.
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.
PART VIII. COMMUNITY COLLEGES
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 annual salaries by 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 APPROPRIATED FOR ISOTHERMAL COMMUNITY COLLEGE
SECTION 8.2. Funds appropriated for composite testing at Isothermal Community College and not used for that purpose may be used to purchase equipment for the Lifelong Learning Center located at Isothermal Community College.
USE OF FUNDS FOR THE COLLEGE INFORMATION SYSTEM PROJECT
SECTION 8.3.(a) Funds appropriated to the Community Colleges System Office for the College Information System Project shall not revert at the end of the 2005‑2006 fiscal year but shall remain available until expended.
SECTION 8.3.(b) Notwithstanding G.S. 143‑23, the Community Colleges System Office may, subject to the approval of the Office of State Budget and Management, in consultation with the Office of Information Technology Services, and after consultation with the Joint Legislative Commission on Governmental Operations, use funds appropriated in this act for the College Information System Project to create a maximum of 20 positions or incur expenditures necessary to transfer the maintenance and administration of the College Information System Project from the vendor to the System Office.
SECTION 8.3.(c) The Community Colleges System Office shall report on a quarterly basis to the Joint Legislative Education Oversight Committee on the implementation of the College Information System Project.
SECTION 8.3.(d) Subsection (a) of this section becomes effective June 30, 2006.
SECTION 8.4.(a) Subject to the approval of the Office of State Budget and Management and cash availability, the North Carolina Community Colleges System Office may carry forward an amount not to exceed ten million dollars ($10,000,000) of the operating funds that were not reverted in fiscal year 2005‑2006 to be reallocated to the State Board of Community Colleges' Equipment Reserve Fund. These funds shall be distributed to colleges consistent with G.S. 115D‑31.
SECTION 8.4.(b) This section becomes effective June 30, 2006.
NC COMMUNITY COLLEGE SYSTEM MAY USE STATE FUNDS IN LIEU OF FEDERAL FUNDS DUE TO FEDERAL MANDATES
SECTION 8.5. Notwithstanding G.S. 143‑23, the Community Colleges System Office may use State literacy funds to fund the State administration of the GED office. Federal funds previously used to support the State administration functions shall be reallocated to the colleges.
REPORT ON THE NCCCS BIONETWORK
SECTION 8.6. The Community Colleges System Office shall report by November 1, 2006, to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division on the implementation of the NCCCS BioNetwork. This report shall include an explanation of the BioNetwork's activities, accomplishments, and expenditures.
STUDY OF NEW AND EXPANDING INDUSTRY TRAINING
SECTION 8.7. The Office of State Budget and Management shall conduct a study to analyze and evaluate the New and Expanding Industry Training program of the North Carolina Community College System. This study shall examine the companies served, the number of times each company has been served, the number of jobs created, the length of time the company has remained in North Carolina after receiving New and Expanding Industry Training funds, and whether the company has maintained employment levels at the same level promised when training was received. The findings of the study shall be reported to the Joint Legislative Education Oversight Committee no later than April 1, 2007.
MATCHING REQUIREMENT FOR BOND FUNDS
SECTION 8.8. Section 3(d) of S.L. 2000‑3 reads as rewritten:
"Section 3.(d) If the
State Board of Community Colleges determines that a community college has not
met its matching requirements by July 1, 2006,2007, with respect
to a capital improvement project for which bond proceeds are allocated in this
act, the Board shall certify that fact to the State Treasurer by October 1, 2006.2007.
All of these bond proceeds with respect to which the Board certifies that the
matching requirement has not been met by July 1, 2006,2007, shall
be placed by the State Treasurer in a special account within the Community
Colleges Bond Fund and shall be used for making grants to community colleges.
Bond proceeds in the special account shall be allocated among the community
colleges in accordance with the following conditions:
(1) The State Board of
Community Colleges shall generate, by October 1, 2006,2007, a
priority ranking of legitimate community college capital improvement needs
using a formula based on objective meaningful factors relevant to capital
needs, including actual and projected enrollment, space requirements, current
capacity, construction costs, and any other factors the State Board considers
relevant.
(2) The State Board of Community Colleges shall provide the State Treasurer a projected allocation of the proceeds in the special account in accordance with this priority ranking, except that:
a. No projected allocation shall be made for a community college that the Board certified in accordance with this subsection had failed to meet a matching requirement.
b. No more than four million dollars ($4,000,000) shall be allocated to a single community college.
c. Funds shall not be allocated for more than one project per community college.
(3) The proceeds of grants made from bond proceeds in the special account shall be allocated and expended for paying the cost of community college capital improvements in accordance with this allocation by the State Board of Community Colleges, to the extent and as provided in this act. The Director of the Budget is empowered, when the Director of the Budget determines it is in the best interest of the State and the North Carolina Community College System to do so, and if the cost of a particular project is less than the projected allocation, to use the excess funds to increase the size of that project or increase the size of any other project itemized in this section, or to increase the amount allocated to a particular community college within the aggregate amount of funds available under this section. The Director of the Budget shall consult with the Advisory Budget Commission and the Joint Legislative Commission on Governmental Operations before making these changes."
COMMUNITY COLLEGE LOW‑WEALTH FUNDING
SECTION 8.9.(a) G.S. 115D‑31.3 is amended by adding a new subsection to read:
"(j) Use of funds in low‑wealth counties. – Funds retained by colleges or distributed to colleges pursuant to this section may be used to supplement local funding for maintenance of plant if the college does not receive maintenance of plant funds pursuant to G.S. 115D‑31.2, and if the county in which the main campus of the community college is located:
(1) Is designated as a Tier 1 or Tier 2 county in accordance with G.S. 105‑129.3;
(2) Had an unemployment rate of at least two percent (2%) above the State average or greater than seven percent (7%), whichever is higher, in the prior calendar year; and
(3) Is a county whose wealth, as calculated under the formula for distributing supplemental funding for schools in low‑wealth counties, is eighty percent (80%) or less of the State average.
Funds may be used for this purpose only after all local funds appropriated for maintenance of plant have been expended."
SECTION 8.9.(b) This section becomes effective June 30, 2006.
COMMUNITY COLLEGE FACILITIES AND EQUIPMENT
SECTION 8.10.(a) Of the funds appropriated to the Community Colleges System Office for facilities and equipment needs, the sum of fifteen million dollars ($15,000,000) shall be used to create the Community College Facilities and Equipment Fund. This Fund shall be used for the purpose of awarding grants to community colleges for facility and equipment needs. The Community Colleges System Office, in consultation with the State Board of Community Colleges shall develop a competitive grant application process and guidelines for facility or equipment needs. The State Board of Community Colleges shall award grants on the merit of the applications received. No individual grant may exceed the sum of one million dollars ($1,000,000).
These grants shall be awarded on a matching basis of one State dollar for every one non‑State dollar.
SECTION 8.10.(b) Beginning September 1, 2006, the Community Colleges System Office shall submit a report to the Office of State Budget and Management and the Fiscal Research Division containing the following information about each grant that was awarded: (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.
SECTION 8.10.(c) The Community Colleges System Office shall develop guidelines related to the administration of the Community College Facilities and Equipment Fund and to the selection of projects to receive grants from the Fund. At least 20 days before the effective date of any guidelines or nontechnical amendments to guidelines, the System Office must publish the proposed guidelines on the System Office's Web site and provide notice to persons who have requested notice of proposed guidelines. In addition, the State Board shall accept oral and written comments on the proposed guidelines during the 15 business days beginning on the first day that the Department has completed these notifications. For the purpose of this subsection, a technical amendment is either of the following:
(1) An amendment that corrects a spelling or grammatical error.
(2) An amendment that makes a clarification based on public comment and could have been anticipated by the public notice that immediately preceded the public comment.
SECTION 8.10.(d) G.S. 150B‑1(d) is amended by adding a new subdivision to read:
"(d) Exemptions from Rule Making. – Article 2A of this Chapter does not apply to the following:
…
(14) The Community Colleges System Office in developing guidelines for the Community College Facilities and Equipment Fund."
PART iX. UNIVERSITIES
UNC‑NCCCS 2+2 E‑LEARNING INITIATIVE
SECTION 9.1. The University of North Carolina and Community Colleges System Office shall report by September 1, 2006, to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division of the General Assembly on the implementation of the UNC‑NCCCS 2+2 E‑Learning Initiative. This report shall include:
(1) The courses and programs within the 2+2 E‑Learning Initiative;
(2) The total number of prospective teachers that have taken or are taking part in this initiative to date broken down by the current academic period and each of the previous academic periods since the program's inception;
(3) The total number of teachers currently in the State's classroom, by local school administrative unit, who have taken part in this initiative;
(4) The change in the number of teachers available to schools since the program's inception;
(5) The qualitative data from students, teachers, local school administrative unit personnel, university personnel, and community college personnel as to the impact of this initiative on our State's teaching pool; and
(6) An explanation of the expenditures and collaborative programs between the North Carolina Community College System and The University of North Carolina, including recommendations for improvement.
TEACHER EDUCATION PROGRAM ENROLLMENT PLANS
SECTION 9.2. The University of North Carolina Board of Governors' Task Force on Meeting Teacher Supply and Demand called for the President to develop a plan for enrollment growth in the University System's teacher education programs to respond to the State's shortage of teachers. In a presentation to the Joint Legislative Education Oversight Committee and to the Board of Governors, a commitment was made to increase the number of teacher education graduates. The University of North Carolina General Administration shall obtain plans from each constituent institution as to how they will maintain their current enrollment in the teacher education programs and achieve their growth targets to ensure such increases in those programs occur. Plans may include using enrollment growth funds for targeted admissions, enhanced student support, and advising, recruiting, increases in faculty in necessary instructional areas that lead to certification, and other methods General Administration believes will achieve those results. The University of North Carolina General Administration shall report back to the Office of State Budget and Management and the Joint Legislative Education Oversight Committee no later than December 30, 2006, on each constituent institution's plan. No later than March 31, 2007, The University of North Carolina General Administration shall submit a report on progress towards meeting this priority for the 2007‑2008 academic year, based on each constituent institution's current students in the education programs, and the students who have been accepted for the 2007‑2008 fiscal year who are enrolling in the education programs. The report shall also explain the distribution of enrollment growth funds by specific initiative.
NORTH CAROLINA IN THE WORLD PROJECT
SECTION 9.3. In collaboration with the State Board of Education and the 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 North Carolina 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.
STUDY THE FEASIBILITY OF ADDING NORTH CAROLINA WESLEYAN COLLEGE TO UNC SYSTEM
SECTION 9.4.(a) The Board of Governors of The University of North Carolina shall study the feasibility of making North Carolina Wesleyan College a constituent institution of The University of North Carolina. The study shall include all of the following:
(1) Mission. – The Board of Governors shall evaluate the potential missions of the campus that would meet the academic and economic needs of the region, the State, and of the University System. The Board of Governors shall take into account the need to avoid duplication of curriculum and programs at other campuses, particularly those within the same geographic area, unless the need for duplication is warranted. The Board of Governors shall seek recommendations, suggestions, and comments from community leaders, educational experts, and business leaders in defining the mission of the new campus. Particular focus shall be placed on utilizing the campus in a manner that addresses both the economic and educational challenges of the region in a unique and focused manner, such as in the areas of science, technology, education, and economic development.
(2) Cost. – The Board of Governors shall analyze the potential operating costs of the campus. Factors such as the mission, staff and faculty salaries, benefits, total faculty and staff levels, total projected student enrollment, facility needs, and tuition rates shall be taken into account.
(3) Facility Needs. – The Board of Governors shall consider what additional facility needs there may be, taking into account the proposed mission of the campus. Examples of those needs may be lab facility upgrades, new buildings to house an expanded student population, and associated infrastructure expansion.
(4) Asset Transfer. – The Board of Governors shall obtain legal and financial analyses to determine if there are any restrictions attached to any of the College's assets (title to property, gifts to endowment, assets purchased with restricted grant funds, etc.) that would prohibit the transfer of the assets to the State. If there are restrictions, then the analyses shall also include the steps necessary to lift the restrictions and the costs of obtaining a clear title.
(5) Liability Analysis. – The Board of Governors shall also obtain a legal analysis to determine whether there are pending liabilities against the campus or reasonably foreseeable future liabilities against the campus. If there are such liabilities, the legal analysis shall also address the action needed to avoid transfer of any liability to the State.
(6) Transition of Current Students/Programs. – The Board of Governors shall consider how best to handle the transition of the currently enrolled student population, both on and off campus, into continuing or new curriculum programs during the conversion period.
(7) Personnel. – The Board of Governors shall assess the employment status of current personnel to determine what, if any, contractual and other employment issues may arise in the conversion.
(8) Legislative Action. – The Board of Governors shall determine the legislative action and statutory amendments needed to authorize and implement the conversion.
SECTION 9.4.(b) Of the funds available to the Board of Governors of The University of North Carolina, the sum of fifty thousand dollars ($50,000) for the 2006‑2007 fiscal year shall be used to conduct the study required by this act.
GRADUATE NURSE SCHOLARSHIP PROGRAM FOR FACULTY PRODUCTION
SECTION 9.6. Chapter 90 of the General Statutes is amended by adding the following new Article to read:
"ARTICLE 9H.
"Graduate Nurse Scholarship Program for Faculty Production.
"§ 90‑171.95. Graduate Nurse Scholarship Program for Faculty Production established; administration.
(a) There is established the Graduate Nurse Scholarship Program for Faculty Production. The North Carolina Nursing Scholars Commission shall determine selection criteria, methods of selection, and shall select recipients of scholarship loans made under the Graduate Nurse Scholarship Program for Faculty Production.
(b) The Graduate Nurse Scholarship Program for Faculty Production shall be used to provide the following:
(1) A scholarship loan for up to two years in the amount of fifteen thousand dollars ($15,000) per year, per recipient, to students enrolled in a masters degree program in nursing education or any other area of the nursing field that would permit them to become a nursing instructor at a North Carolina community college or university.
(2) A scholarship loan for up to three years in the amount of fifteen thousand dollars ($15,000) per year, per recipient, to students enrolled in a doctoral degree program in nursing education or any other area of the nursing field that would permit them to become a nursing instructor at a North Carolina community college or university.
The State Education Assistance Authority shall adopt specific rules to regulate these scholarship loans.
(c) If a recipient is awarded a scholarship loan under this program and is enrolled, or accepted for enrollment, in an eligible program, but is unable to pursue the course of study in nursing for a semester due to limited faculty resources at the institution for that semester, then the recipient shall continue to receive the scholarship loan for that semester and shall not be required to forfeit or repay the scholarship loan for that semester, provided that the recipient remains otherwise eligible for the program. This waiver shall be valid for only one semester of study and may extend a recipient's eligibility for funding under the program by no more than one semester.
(d) The Commission shall adopt stringent standards, which may include minimum grade point average, scholastic aptitude test scores, and other standards deemed appropriate by the Commission, to ensure that only the best potential students receive loans under the Graduate Nurse Scholarship Program for Faculty Production. Standards adopted by the Commission shall include provisions for ensuring that the qualifications of applicants who are or would be nontraditional students are considered fairly in providing them with opportunities to compete for the loans. Loans under the Graduate Nurse Scholarship Program for Faculty Production shall be awarded only to applicants who meet the standards set by the Commission and who agree to teach in a North Carolina public or private nursing program upon completion of the nursing education program supported by the loan.
(e) The Commission shall develop and administer the Graduate Nurse Scholarship Program for Faculty Production in cooperation with nursing schools at institutions approved by the Commission and the North Carolina Board of Nursing. The Graduate Nurse Scholarship Program for Faculty Production shall provide for participants to be exposed to a range of extracurricular activities while in school, which activities shall be aimed at instilling in students a strong motivation to remain in the practice of nursing education and to provide leadership for the nursing profession.
(f) The Commission shall make an effort to identify and encourage minority students and students who may not otherwise consider a career in nursing to apply for the Graduate Nurse Scholarship Program for Faculty Production.
(g) Upon the naming of recipients of loans from the Graduate Nurse Scholarship Program for Faculty Production, the Commission shall inform the State Education Assistance Authority (SEAA) of its decisions. The SEAA shall perform all of the administrative functions necessary to implement this Article, which functions shall include: rulemaking, dissemination of information to the public, distribution and receipt of applications for scholarship loans, and the functions necessary for the execution, payment, and enforcement of promissory notes required under this Article.
"§ 90‑171.96. Terms of loans; receipt and disbursement of funds.
(a) All scholarship loans shall be evidenced by notes made payable to the State Education Assistance Authority that bear interest at the rate of ten percent (10%) per year beginning 90 days after completion of the nursing education program, or 90 days after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated upon the recipient's withdrawal from school or by the recipient's failure to meet the standards set by the Commission.
(b) The State Education Assistance Authority shall forgive the loan if, within seven years after graduation from a nursing education program, the recipient teaches in a public or private nursing education program in a public or private educational institution in North Carolina for one year for every year a scholarship loan was provided. If the recipient repays the scholarship loan by cash payments, all indebtedness shall be repaid within 10 years. The Authority may provide for accelerated repayment and for less than full‑time employment options to encourage the practice of nursing education in either geographic or nursing specialty shortage areas. The Authority shall adopt specific rules to designate these geographic areas and these nursing specialty shortage areas, upon recommendations of the North Carolina Center for Nursing. The North Carolina Center for Nursing shall base its recommendations on objective information provided by interested groups or agencies and upon objective information collected by the Center. The Authority may forgive the scholarship loan if it determines that it is impossible for the recipient to teach in a public or private nursing program in North Carolina for a sufficient time to repay the loan because of the death or permanent disability of the recipient within 10 years following graduation or termination of enrollment in a nursing education program.
(c) All funds appropriated to or otherwise received by the Graduate Nurse Scholarship Program for Faculty Production for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds shall be placed in a revolving fund. This revolving fund may be used only for scholarship loans granted under the Graduate Nurse Scholarship Program for Faculty Production."
MANAGEMENT FLEXIBILITY TO REORGANIZE BUDGET CODE 16012 UNC BOARD OF GOVERNORS RELATED EDUCATIONAL PROGRAMS
SECTION 9.7. Notwithstanding G.S. 143‑23, for the 2006‑2007 fiscal year, the General Administration of The University of North Carolina and the State Educational Assistance Authority shall, with the approval of the Office of State Budget and Management, reorganize budget code 16012, UNC Board of Governors Related Educational Programs, so that the budget reflects and segregates each specific program individually. The Office of State Budget and Management shall work with The University of North Carolina General Administration and the State Educational Assistance Authority to ensure that each program represented in code 16012 is identified and budgeted separately.
SECTION 9.8. G.S. 116‑30.2(a) reads as rewritten:
"(a) All General Fund appropriations made by the General Assembly for continuing operations of a special responsibility constituent institution of The University of North Carolina shall be made in the form of a single sum to each budget code of the institution for each year of the fiscal period for which the appropriations are being made. Notwithstanding G.S. 143‑23(a1), G.S. 143‑23(a2), and G.S. 120‑76(8), each special responsibility constituent institution may expend monies from the overhead receipts special fund budget code and the General Fund monies so appropriated to it in the manner deemed by the Chancellor to be calculated to maintain and advance the programs and services of the institutions, consistent with the directives and policies of the Board of Governors. Special responsibility constituent institutions may transfer appropriations between budget codes. These transfers shall be considered certified even if as a result of agreements between special responsibility constituent institutions. The preparation, presentation, and review of General Fund budget requests of special responsibility constituent institutions shall be conducted in the same manner as are requests of other constituent institutions. The quarterly allotment procedure established pursuant to G.S. 143‑17 shall apply to the General Fund appropriations made for the current operations of each special responsibility constituent institution. All General Fund monies so appropriated to each special responsibility constituent institution shall be recorded, reported, and audited in the same manner as are General Fund appropriations to other constituent institutions."
NURSING SCHOLARS PROGRAM MODIFICATION
SECTION 9.9.(a) G.S. 90‑171.61 reads as rewritten:
"§ 90‑171.61. Nursing Scholars Program established; administration.
(a) There is established the Nursing Scholars Program. The North Carolina Nursing Scholars Commission shall determine selection criteria, methods of selection, and shall select recipients of scholarship loans made under the Nursing Scholars Program.
(b) The Nursing Scholars Program shall be used to provide the following:
(1) A four‑year
scholarship loanScholarship loans in the amount amounts of
up to of five thousand dollars ($5,000)six thousand five hundred
dollars ($6,500) per year, for each scholarship of no more than four
years per recipient, to North Carolina high school seniors or other
personsresidents interested in preparing to become a
registered nurse nurses through a associate or
baccalaureate degree program.programs or through diploma programs.
(2) A two‑year
scholarship loan in the amount of three thousand dollars ($3,000) per year, per
recipient, to persons interested in preparing to be a registered nurse through
an associate degree nursing program or a diploma nursing program.
(3) A two‑year
scholarship loan in the amount of three thousand dollars ($3,000) per year, per
recipient, for two years of baccalaureate nursing study for college juniors or
community college graduates interested in preparing to be a registered nurse.
(4) A two‑year
scholarship loan of three thousand dollars ($3,000) per year, per recipient,
for two years of baccalaureate study in nursing for registered nurses who do
not hold a baccalaureate degree in nursing.
(5) A two‑year
scholarship loanScholarship loans of six thousand five hundred
dollars ($6,000)($6,500) per year, per recipient, for two years
of study leading to a master of science in nursing degree for people residents
already holding a baccalaureate degree in nursing.
In addition to theawarding
scholarship loans awarded pursuant to subdivisions (1) through and
(5) of this subsection, the Commission may award pro rata scholarship loans to
recipients enrolled at least half‑time in study to become registered
nurses or to attain a master of science in nursing degree.in study
leading to a master of science in nursing degree who already hold a
baccalaureate degree in nursing and to recipients enrolled at least half‑time
in study leading to a baccalaureate degree in nursing who already are licensed
as registered nurses. In awarding all scholarship loans, the Commission
shall give priority to full‑time students over part‑time students.
The State Education Assistance Authority shall adopt specific rules to regulate
scholarship loans to part‑time master of science in nursing students
and part‑time baccalaureate degree students.students.
Within current funds available or
with any additional funds provided by the General Assembly for this purpose,
the Commission may set aside slots for scholarship loans prescribed by subdivisions
(1) and (2) subdivision (1) of this subsection to enable licensed
practical nurses to become registered nurses. The State Education Assistance
Authority shall adopt specific rules to regulate these scholarship loans.
(b1) If a recipient is awarded a scholarship loan under this program and is enrolled, or accepted for enrollment, in a baccalaureate nursing program, but is unable to pursue the course of study in nursing for a semester due to limited faculty resources at the institution for that semester, then the recipient shall continue to receive the scholarship loan for that semester and shall not be required to forfeit or repay the scholarship loan for that semester provided that the recipient remains otherwise eligible for the program. This waiver shall be valid for only one semester of study and may extend a recipient's eligibility for funding under the program by no more than one semester.
(c) The Commission shall adopt stringent standards, which may include minimum grade point average, scholastic aptitude test scores, and other standards deemed appropriate by the Commission, to ensure that only the best potential students receive and retain loans under the Nursing Scholars Program. Standards adopted by the Commission shall include provisions for ensuring that the qualifications of applicants who are or would be nontraditional students are considered fairly in providing them with opportunities to compete for the loans. Loans under the Nursing Scholars Program shall be awarded only to applicants who meet the standards set by the Commission and who agree to practice nursing in North Carolina upon completion of the nursing education program supported by the loan.
(d) The Commission shall develop and administer the Nursing Scholars Program in cooperation with nursing schools at institutions approved by the Commission and the North Carolina Board of Nursing. The Nursing Scholars Program shall provide for participants to be exposed to a range of extracurricular activities while in school, which activities shall be aimed at instilling in students a strong motivation to remain in the practice of nursing and to provide leadership for the nursing profession.
(e) The Commission may form regional review committees within North Carolina to assist it in identifying the best high school seniors and other applicants for the program. The Commission and the review committees shall make an effort to identify and encourage minority students and students who may not otherwise consider a career in nursing to apply for the Nursing Scholars Program.
(f) Upon the naming of recipients of loans from the Nursing Scholars Program, the Commission shall inform the State Education Assistance Authority (SEAA) of its decisions. The SEAA shall perform all of the administrative functions necessary to implement this Article, which functions shall include: rule‑making, dissemination of information to the public, distribution and receipt of applications for scholarship loans, and the functions necessary for the execution, payment, and enforcement of promissory notes required under this Article."
SECTION 9.9.(b) This section applies to all scholarship loans awarded or renewed on or after July 1, 2006.
UNC BOARD OF GOVERNORS MEDICAL AND DENTAL SCHOLARSHIPS
SECTION 9.10.(a) Section 9.9(a) of S.L. 2005‑276 reads as rewritten:
"SECTION 9.9.(a) The current Board of Governors' Dental Scholarship Program, under the purview of the Board of Governors of The University of North Carolina, shall make any awards to students admitted after July 1, 2005, as scholarship loan awards. The Board of Governors' Dental Scholarship Program is administered by the Board of Governors of The University of North Carolina. The Board of Governors' Dental Scholarship Program shall be used to provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers for first‑year students, required dental equipment, and an annual payment of five thousand dollars ($5,000) per year to students who have been accepted for admission to the School of Dentistry at the University of North Carolina at Chapel Hill. The Board may adopt standards, including minimum grade point average and DAT scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program. All scholarship loans shall be evidenced by notes made payable to the Board that shall bear interest at the rate of ten percent (10%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Board. The Board shall forgive the loan if, within seven years after graduation, the recipient practices dentistry in North Carolina for four years. An extension of the seven‑year period for satisfaction of the service requirements for the scholarship loan may be granted subject to the approval on the finding of extenuating circumstances by the State Education Assistance Authority. Such extenuating circumstances may include, but are not be limited to, participation in a dental residency program. The Board shall also forgive the loan if it finds that it is impossible for the recipient to practice dentistry in North Carolina for four years, within seven years after graduation, because of the death or permanent disability of the recipient. All unused funds appropriated to or otherwise received by the Board for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds shall revert to the General Fund at the end of each fiscal year."
SECTION 9.10.(b) Section 9.10(a) of S.L. 2005-276 reads as rewritten:
"SECTION 9.10.(a) The current Board of Governors' Medical Scholarship Program, under the purview of the Board of Governors of The University of North Carolina, shall make any awards to students admitted after July 1, 2005, as scholarship loan awards. The Board of Governors' Medical Scholarship Program is administered by the Board of Governors of The University of North Carolina. The Board of Governors' Medical Scholarship Program shall be used to provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers, and an annual payment of five thousand dollars ($5,000) per year to students who have been accepted for admission to either Duke University School of Medicine, Brody School of Medicine at East Carolina University, the University of North Carolina at Chapel Hill School of Medicine, or the Wake Forest University School of Medicine. The Board may adopt standards, including minimum grade point average and MCAT scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program. All scholarship loans shall be evidenced by notes made payable to the Board that shall bear interest at the rate of ten percent (10%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Board. The Board shall forgive the loan if, within seven years after graduation, the recipient practices medicine in North Carolina for four years. An extension of the seven‑year period for satisfaction of the service requirements of the scholarship loan may be granted subject to the approval of the State Education Assistance Authority. Such extenuating circumstances may include, but not be limited to, participation in a medical residency program. The Board shall also forgive the loan if it finds that it is impossible for the recipient to practice medicine in North Carolina for four years, within seven years after graduation, because of the death or permanent disability of the recipient. All unused funds appropriated to or otherwise received by the Board for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds shall revert to the General Fund at the end of each fiscal year."
SECTION 9.10.(c) This section is effective when it becomes law and applies to all scholarship loans issued after July 1, 2005.
NC SCHOOL OF SCIENCE AND MATH/HIGH SCHOOL CONSTITUENT INSTITUTION
SECTION 9.11.(a) G.S. 116‑2 reads as rewritten:
"§ 116‑2. Definitions.
As used in this Article, unless the context clearly indicates a contrary intent:
(1) "Board" means the Board of Governors of the University of North Carolina.
(2) "Board of trustees" means the board of trustees of a constituent institution.
(3) "Chancellor" means the chancellor of a constituent institution.
(4) "Constituent
institution" or "institution" means one of the 16 public senior
institutions, institutions of higher education, to wit, the
University of North Carolina at Chapel Hill, North Carolina State University at
Raleigh, the University of North Carolina at Greensboro, the University of
North Carolina at Charlotte, the University of North Carolina at Asheville, the
University of North Carolina at Wilmington, Appalachian State University, East
Carolina University, Elizabeth City State University, Fayetteville State
University, North Carolina Agricultural and Technical State University, North
Carolina Central University, North Carolina School of the Arts, Pembroke State
University, redesignated effective July 1, 1996, as the "University of
North Carolina at Pembroke", Western Carolina University, and Winston‑Salem
State University.University, and the constituent high school, the
North Carolina School of Science and Mathematics.
(5) "President" means the President of the University of North Carolina.
(6) "Vending facilities" has the same meaning as it does in G.S. 143‑12.1."
SECTION 9.11.(b) G.S. 116‑4 reads as rewritten:
"§ 116‑4. Constituent institutions of the University of North Carolina.
On July 1, 1972, the The
University of North Carolina shall be composed of the following institutions:institutions
of higher education: the University of North Carolina at Chapel Hill, North
Carolina State University at Raleigh, the University of North Carolina at
Greensboro, the University of North Carolina at Charlotte, the University of
North Carolina at Asheville, the University of North Carolina at Wilmington,
Appalachian State University, East Carolina University, Elizabeth City State
University, Fayetteville State University, North Carolina Agricultural and
Technical State University, North Carolina Central University, North Carolina
School of the Arts, Pembroke State University, redesignated effective July 1,
1996, as the "University of North Carolina at Pembroke", Western
Carolina University and Winston‑Salem State University.University,
and the constituent high school, the North Carolina School of Science and
Mathematics."
SECTION 9.11.(c) G.S. 116‑12 reads as rewritten:
"§ 116‑12. Property and obligations.
All property of whatsoever kind and all rights and privileges held by the Board of Higher Education and by the Boards of Trustees of Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, North Carolina Agricultural and Technical State University, North Carolina Central University, North Carolina School of the Arts, Pembroke State University, redesignated effective July 1, 1996, as the "University of North Carolina at Pembroke", Western Carolina University and Winston‑Salem State University, as said property, rights and privileges may exist immediately prior to July 1, 1972, shall be, and hereby are, effective July 1, 1972, transferred to and vested in the Board of Governors of the University of North Carolina. All obligations of whatsoever kind of the Board of Higher Education and of the Boards of Trustees of Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, North Carolina Agricultural and Technical State University, North Carolina Central University, North Carolina School of the Arts, Pembroke State University, redesignated effective July 1, 1996, as the "University of North Carolina at Pembroke", Western Carolina University and Winston‑Salem State University, as said obligations may exist immediately prior to July 1, 1972, shall be, and the same hereby are, effective July 1, 1972, transferred to and assumed by the Board of Governors of the University of North Carolina. Any property, real or personal, held immediately prior to July 1, 1972, by a board of trustees of a constituent institution for the benefit of that institution or by the University of North Carolina for the benefit of any one or more of its six institutions, shall from and after July 1, 1972, be kept separate and distinct from other property held by the Board of Governors, shall continue to be held for the benefit of the institution or institutions that were previously the beneficiaries and shall continue to be held subject to the provisions of the respective instruments, grants or other means or process by which any property right was acquired. All property of whatsoever kind and all rights and privileges held by the Board of Trustees of the North Carolina School of Science and Mathematics, as said property, rights and privileges may exist immediately prior to July 1, 2007, shall be and hereby are, effective July 1, 2007, transferred to and vested in the Board of Governors of The University of North Carolina. All obligations of whatsoever kind of the Board of Trustees of the North Carolina School of Science and Mathematics as said obligations may exist immediately prior to July 1, 2007, shall be, and the same hereby are, effective July 1, 2007, transferred to and assumed by the Board of Governors of The University of North Carolina. In case a conflict arises as to which property, rights or privileges were held for the beneficial interest of a particular institution, or as to the extent to which such property, rights or privileges were so held, the Board of Governors shall determine the issue, and the determination of the Board shall constitute final administrative action. Nothing in this Article shall be deemed to increase or diminish the income, other revenue or specific property which is pledged, or otherwise hypothecated, for the security or liquidation of any obligations, it being the intent that the Board of Governors shall assume said obligations without thereby either enlarging or diminishing the rights of the holders thereof."
SECTION 9.11.(d) G.S. 116‑17 reads as rewritten:
"§ 116‑17. Purchase of annuity or retirement income contracts for faculty members, officers and employees.
Notwithstanding any provision of
law relating to salaries and/or salary schedules for the pay of faculty members,
administrative officers, or any other employees of universities, colleges colleges,
constituent institutions, and other institutions of higher learning
as named and set forth in this Article, and other State agencies qualified as
educational institutions under section 501(c)(3) of the United States Internal
Revenue Code, the governing boards of any such universities, colleges colleges,
constituent institutions, and other institutions of higher learning
may authorize the business officer or agent of same to enter into annual
contracts with any of the faculty members, administrative officers and
employees of said institutions of higher learning which provide for a
reduction in salary below the total established compensation or salary schedule
for a term of one year. The financial officer or agent shall use the funds
derived from the reduction in the salary of the faculty member, administrative
officer or employee to purchase a nonforfeitable annuity or retirement income
contract for the benefit of said faculty member, administrative officer or
employee of said universities, colleges and institutions of higher learning.institutions.
A faculty member, administrative officer or employee who has agreed to a salary
reduction for this purpose shall not have the right to receive the amount of
the salary reduction in cash or in any other way except the annuity or
retirement income contract. Funds used for the purchase of an annuity or
retirement income contract shall not be in lieu of any amount earned by the
faculty member, administrative officer or employee before his election for a
salary reduction has become effective. The agreement for salary reductions
referred to herein shall be effected under any necessary regulations and
procedures adopted by the various governing boards of the various institutions of
higher learning and on forms prepared by said governing boards.
Notwithstanding any other provision of this section or law, the amount by which
the salary of any faculty member, administrative officer or employee is reduced
pursuant to this section shall not be excluded, but shall be included, in
computing and making payroll deductions for social security and retirement
system purposes, and in computing and providing matching funds for retirement
system purposes.
In lieu of the annuity and related contracts provided for under this section, interests in custodial accounts pursuant to Section 401(f), Section 403(b)(7), and related sections of the Internal Revenue Code of 1986 as amended may be purchased for the benefit of qualified employees under this section with the funds derived from the reduction in the salaries of such employees."
SECTION 9.11.(e) The catch line of G.S. 116‑30.2 reads as rewritten:
"§
116‑30.2. Appropriations to special responsibility constituent institutions
and to the North Carolina School of Science and Mathematics.institutions."
SECTION 9.11.(f) G.S. 116‑30.2(b) is repealed.
SECTION 9.11.(g) G.S. 116‑31(d) reads as rewritten:
"(d) Effective Except
as provided in G.S. 116‑65, effective July 1, 1973, each of the
16 constituent institutions of higher education set out in G.S. 116‑2(4)
shall have board of trustees composed of 13 persons chosen as follows:
(1) Eight elected by the Board of Governors,
(2) Four appointed by the Governor, and
(3) The president of the student government ex officio.
The Board of Trustees of the North Carolina School of Science and Mathematics shall be established in accordance with G.S. 116‑233."
SECTION 9.11.(h) G.S. 116‑40.22(c) reads as rewritten:
"(c) Tuition and Fees. – Notwithstanding any provision in Chapter 116 of the General Statutes to the contrary, in addition to any tuition and fees set by the Board of Governors pursuant to G.S. 116‑11(7), the Board of Trustees of the institution may recommend to the Board of Governors tuition and fees for program‑specific and institution‑specific needs at that institution without regard to whether an emergency situation exists and not inconsistent with the actions of the General Assembly. The institution shall retain any tuition and fees set pursuant to this subsection for use by the institution. Notwithstanding this subsection, neither the Board of Governors of The University of North Carolina nor its Board of Trustees shall impose any tuition or mandatory fee at the North Carolina School of Science and Mathematics without the approval of the General Assembly."
SECTION 9.11.(i) G.S. 116‑143 reads as rewritten:
"§ 116‑143. State‑supported institutions of higher education required to charge tuition and fees.
The Board of Governors of the The
University of North Carolina shall fix the tuition and fees, not inconsistent
with actions of the General Assembly, at the institutions of higher
education enumerated in G.S. 116‑4 in such amount or amounts as
it may deem best, taking into consideration the nature of each institution and
program of study and the cost of equipment and maintenance; and each
institution shall charge and collect from each student, at the beginning of
each semester or quarter, tuition, fees, and an amount sufficient to pay other
expenses for the term.
In the event that said students are unable to pay the cost of tuition and required academic fees as the same may become due, in cash, the said several boards of trustees are hereby authorized and empowered, in their discretion, to accept the obligation of the student or students together with such collateral or security as they may deem necessary and proper, it being the purpose of this Article that all students in State institutions of higher learning shall be required to pay tuition, and that free tuition is hereby abolished. Notwithstanding this section, neither the Board of Governors of The University of North Carolina nor its Board of Trustees shall impose any tuition or mandatory fee at the North Carolina School of Science and Mathematics without the approval of the General Assembly.
Inasmuch as the giving of tuition
and fee waivers, or especially reduced rates, represent in effect a variety of
scholarship awards, the said practice is hereby prohibited except when
expressly authorized by statute or by the Board of Governors of the The
University of North Carolina; and, furthermore, it is hereby directed and
required that all budgeted funds expended for scholarships of any type must be
clearly identified in budget reports.
Notwithstanding the above
provision relating to the abolition of free tuition, the Board of Governors of the
The University of North Carolina may, in its discretion, provide
regulations under which a full‑time faculty member of the rank of full‑time
instructor or above, and any full‑time staff member of the The
University of North Carolina may during the period of normal employment enroll
for not more than one course per semester in the The University
of North Carolina free of charge for tuition, provided such enrollment does not
interfere with normal employment obligations and further provided that such
enrollments are not counted for the purpose of receiving general fund
appropriations."
SECTION 9.11.(j) G.S. 116‑230.1 reads as rewritten:
"§ 116‑230.1. Policy.
It is hereby declared to be the policy of the State to foster, encourage, promote, and provide assistance in the development of skills and careers in science and mathematics among the people of the State."
SECTION 9.11.(k) G.S. 116‑231 reads as rewritten:
"§
116‑231. Reestablishment of the North Carolina School of Science and
Mathematics as an Affiliated Schoola Constituent High School of
The University of North Carolina.
The North Carolina School of
Science and Mathematics is hereby reestablished, as an affiliateda
constituent high school of The University of North Carolina, and shall be
governed by the Board of Governors as prescribed in this Chapter and a
Board of Trustees as prescribed in this Article."
SECTION 9.11.(l) G.S. 116‑232 reads as rewritten:
"§ 116‑232. Purposes.
The purposes of the School shall
be to foster the educational development of North Carolina high school students
who are academically talented in the areas of science and mathematics and show
promise of exceptional development and global leadership through
participation in a residential educational setting emphasizing instruction in
the areas of science and mathematics; to develop, evaluate, and disseminate
experimental instructional programs; and to serve all schools of the State
through research and outreach activities.and to provide instruction,
methods, and curricula designed to improve teaching and learning in North
Carolina and the nation with an emphasis on distance education and programs that
expand pathways for students into careers in science and mathematics."
SECTION 9.11.(m) The introductory language of G.S. 116‑233(a) reads as rewritten:
"(a) There Notwithstanding
the provisions of G.S. 116‑31(d), there shall be a Board of
Trustees of the School, which shall consist of 27 members as follows:
…"
SECTION 9.11.(n) G.S. 116‑234 reads as rewritten:
"§ 116‑234. Board of Trustees; meetings; rules of procedure; officers.
(a) The Board of Trustees
shall meet at least four three times a year and may hold special
meetings at any time, at the call of the chairman or upon petition addressed to
the chairman by at least four of the members of the Board.
(b) The Notwithstanding
the provisions of G.S. 116‑32, the Board of Trustees shall elect
a chairman and a vice‑chairman; no ex officio member may hold such an
office.
(c) The Board of Trustees shall determine its own rules of procedure and may delegate to such committees as it may create such of its powers as it deems appropriate.
(d) Members of the Board of Trustees, other than ex officio members under G.S. 116‑233(a)(3), shall receive such per diem compensation and necessary travel and subsistence expenses while engaged in the discharge of their official duties as is provided by law for members of State boards and commissions. Ex officio members under G.S. 116‑233(a)(3) shall be reimbursed for travel expenses as provided by G.S. 138‑6."
SECTION 9.11.(o) The catch line of G.S. 116‑235 reads as rewritten:
"§ 116‑235. Board of Trustees; additional powers and duties."
SECTION 9.11.(p) G.S. 116‑235 is amended by adding a new subsection to read:
"(a) In addition to the powers enumerated in Chapter 116, Article I, Part 3, the Board of Trustees shall have the powers and duties set out in this section."
SECTION 9.11.(q) G.S. 116‑235(a) reads as rewritten:
"(a)(a1) Academic
Program. –
(1) The Board of Trustees shall establish the standard course of study for the School. This course of study shall set forth the subjects to be taught in each grade and the texts and other educational materials on each subject to be used in each grade.
(2) The Board of Trustees shall adopt regulations governing class size, the instructional calendar, the length of the instructional day, and the number of instructional days in each term."
SECTION 9.11.(r) G.S. 116‑235(b) reads as rewritten:
"(b) Students. –
(1) Admission of Students. –
The School shall admit students in accordance with criteria, standards, and
procedures established by the Board of Trustees. To be eligible to be
considered for admission, an applicant must be either a legal resident of the
State, as defined by G.S. 116‑143.1(a)(1), or a student whose parent
is an active duty member of the armed services, as defined by G.S. 116‑143.3(2),
who is abiding in this State incident to active military duty at the time the
application is submitted, provided the student shares the abode of that parent;
eligibility to remain enrolled in the School shall terminate at the end of any
school year during which a student becomes a nonresident of the State. The
Board of Trustees shall ensure, insofar as possible without jeopardizing
admission standards, that an equal number of qualified rising high school
juniorsapplicants is admitted to the program and to the residential
summer institutes in science and mathematics from each of North Carolina's
congressional districts. In no event shall the differences in the number of rising
high school juniorsqualified applicants offered admission to the
program from each of North Carolina's congressional districts be more than two
and one‑half percentage points from the average number per district who
are offered admission.
(2) School Attendance. –
Every parent, guardian, or other person in this State having charge or control
of a child who is enrolled in the School and who is less than 16 years of age
shall cause such child to attend school continuously for a period equal to the
time which the School shall be in session. No person shall encourage, entice,
or counsel any child to be unlawfully absent from the School. Any person who
aids or abets a student's unlawful absence from the School shall, upon
conviction, be guilty of a Class 1 misdemeanor. The Director Chancellor
of the School shall be responsible for implementing such additional policies
concerning compulsory attendance as shall be adopted by the Board of Trustees,
including regulations concerning lawful and unlawful absences, permissible
excuses for temporary absences, maintenance of attendance records, and
attendance counseling.
(3) Student Discipline. –
Rules of conduct governing students of the School shall be established by the
Board of Trustees. The Director,Chancellor, other administrative
officers, and all teachers, substitute teachers, voluntary teachers, teacher
aides and assistants, and student teachers in the School may use reasonable
force in the exercise of lawful authority to restrain or correct pupils and
maintain order.
SECTION 9.11.(s) G.S. 116‑235(c) through G.S. 116‑235(h) is repealed.
SECTION 9.11.(t) G.S. 116‑236 is repealed.
SECTION 9.11.(u) G.S. 116‑237 is repealed.
SECTION 9.11.(v) G.S. 116‑238 is repealed
SECTION 9.11.(w) G.S.66‑58(c)(3) reads as rewritten:
"(c) The provisions of subsection (a) shall not prohibit:
…
(3) The business operation of
endowment funds established for the purpose of producing income for educational
purposes; for purposes of this section, the phrase "operation of endowment
funds" shall include the operation by public postsecondary educationalconstituent
institutions of The University of North Carolina of campus stores, the
profits from which are used exclusively for awarding scholarships to defray the
expenses of students attending the institution; provided, that the operation of
the stores must be approved by the board of trustees of the institution, and
the merchandise sold shall be limited to educational materials and supplies,
gift items and miscellaneous personal‑use articles. Provided further
that, notwithstanding this subsection, profits from a campus store operated by
the endowment of the North Carolina School of Science and Mathematics are used
exclusively for student activities, athletics, and other programs to enhance
student life. Provided further that sales at campus stores are limited to
employees of the institution and members of their immediate families, to duly
enrolled students of the campus at which a campus store is located and their
immediate families, to duly enrolled students of other campuses of the
University of North Carolina other than the campus at which the campus store is
located, to other campus stores and to other persons who are on campus other
than for the purpose of purchasing merchandise from campus stores. It is the
intent of this subdivision that campus stores be established and operated for
the purpose of assuring the availability of merchandise described in this
Article for sale to persons enumerated herein and not for the purpose of
competing with stores operated in the communities surrounding the campuses of
the University of North Carolina."
SECTION 9.11.(x) G.S. 66‑58(g) is repealed.
SECTION 9.11.(y) G.S. 126‑5(c1)(8) reads as rewritten:
"(c1) Except as to the provisions of Articles 6 and 7 of this Chapter, the provisions of this Chapter shall not apply to:
…
(8) Instructional and
research staff, physicians, and dentists of The University of North Carolina.Carolina,
including the faculty of the North Carolina School of Science and Mathematics.
…"
SECTION 9.11.(z) G.S. 126‑5(c1)(11) is repealed.
SECTION 9.11.(aa) RESERVED
SECTION 9.11.(bb) RESERVED
SECTION 9.11.(cc) G.S. 143‑597(a) is amended by adding a new subdivision to read:
"(7) The North Carolina School of Science and Mathematics."
SECTION 9.11.(dd) This section becomes effective July 1, 2007.
EXPAND TUITION WAIVER PROGRAM FOR UNC FACULTY & STAFF
SECTION 9.12. G.S. 116‑143 reads as rewritten:
"§ 116‑143. State‑supported institutions of higher education required to charge tuition and fees.
(a) The Board of Governors of the University of North Carolina shall fix the tuition and fees, not inconsistent with actions of the General Assembly, at the institutions enumerated in G.S. 116‑4 in such amount or amounts as it may deem best, taking into consideration the nature of each institution and program of study and the cost of equipment and maintenance; and each institution shall charge and collect from each student, at the beginning of each semester or quarter, tuition, fees, and an amount sufficient to pay other expenses for the term.
(b) In the event that said students are unable to pay the cost of tuition and required academic fees as the same may become due, in cash, the said several boards of trustees are hereby authorized and empowered, in their discretion, to accept the obligation of the student or students together with such collateral or security as they may deem necessary and proper, it being the purpose of this Article that all students in State institutions of higher learning shall be required to pay tuition, and that free tuition is hereby abolished.
(c) Inasmuch as the giving of tuition and fee waivers, or especially reduced rates, represent in effect a variety of scholarship awards, the said practice is hereby prohibited except when expressly authorized by statute or by the Board of Governors of the University of North Carolina; and, furthermore, it is hereby directed and required that all budgeted funds expended for scholarships of any type must be clearly identified in budget reports.
(d) Notwithstanding
the above provision relating to the abolition of free tuition, the Board of
Governors of the University of North Carolina may, in its discretion, provide
regulations under which a full‑time faculty member of the rank of full‑time
instructor or above, and any full‑time staff member of the University of
North Carolina may during the period of normal employment enroll for not more
than one course three courses per semester year in
the University of North Carolina free of charge for tuition, provided such
enrollment does not interfere with normal employment obligations and further
provided that such enrollments are not counted for the purpose of receiving
general fund appropriations."
TUITION AND CONTRACTUAL GRANTS FOR TEACHING/NURSING
SECTION 9.13.(a) G.S. 116‑19 reads as rewritten:
"§
116‑19. Contracts with private institutions to aid North Carolina students;students
and licensure students; reporting requirement.
(a) In order to encourage
and assist private institutions to continue to educate North Carolina students,students
and licensure students, the State Education Assistance Authority may enter
into contracts with the institutions under the terms of which an institution
receiving any funds that may be appropriated pursuant to this section would
agree that, during any fiscal year in which such funds were received, the
institution would provide and administer scholarship funds for needy North
Carolina students and licensure students in an amount at least equal to
the amount paid to the institution, pursuant to this section, during the fiscal
year. Under the terms of the contracts the State Education Assistance Authority
would agree to pay to the institutions, subject to the availability of funds, a
fixed sum of money for each North Carolina student and licensure student enrolled
at the institutions for the regular academic year, said sum to be determined by
appropriations that might be made from time to time by the General Assembly
pursuant to this section. Funds appropriated pursuant to this section shall be
paid by the State Education Assistance Authority to an institution on
certification of the institution showing the number of North Carolina students and
licensure students enrolled at the institution as of October 1 of any year
for which funds may be appropriated. For purposes of this subsection, "needy
North Carolina students"students and licensure students"
are those eligible students and licensure students who have financial
need as determined by the institution under the institutional methodology or
the federal methodology as defined by the State Education Assistance Authority.
For purposes of this subsection, "institutional methodology" means a
need‑analysis formula, developed by College Scholarship Service, that
determines the student's and or licensure student's and his or her family's
capacity to pay for postsecondary education each year.
(b) The State Education Assistance Authority shall document the number of full‑time equivalent North Carolina undergraduate students and full‑time and less than full‑time licensure students that are enrolled in off‑campus programs and the State funds collected by each institution pursuant to G.S. 116‑19 for those students. The State Education Assistance Authority shall also document the number of scholarships and the amount of the scholarships that are awarded under G.S. 116‑19 to students and licensure students enrolled in off‑campus programs. An "off‑campus program" is any program offered for degree credit away from the institution's main permanent campus.
The State Education Assistance Authority shall include in its annual report to the Joint Legislative Education Oversight Committee the information it has compiled and its findings regarding this program."
SECTION 9.13.(b) G.S. 116‑20 reads as rewritten:
"§ 116‑20. Scholarship and contract terms; base period.
In order to encourage and assist private institutions to educate additional numbers of North Carolinians, the Board of Governors of the University of North Carolina is hereby authorized to enter into contracts within the institutions under the terms of which an institution receiving any funds that may be appropriated pursuant to this section would agree that, during any fiscal year in which such funds were received, the institution would provide and administer scholarship funds for needy North Carolina students and licensure students in an amount at least equal to the amount paid to the institution, pursuant to this section, during the fiscal year. Under the terms of the contracts the Board of Governors of the University of North Carolina would agree to pay to the institutions, subject to the availability of funds, a fixed sum of money for each North Carolina student and licensure student enrolled as of October 1 of any year for which appropriated funds may be available, over and above the number of North Carolina students enrolled in that institution as of October 1, 1997, which shall be the base date for the purpose of this calculation. Funds appropriated pursuant to this section shall be paid by the State Education Assistance Authority to an institution upon recommendation of the Board of Governors of the University of North Carolina and on certification of the institution showing the number of North Carolina students and licensure students enrolled at the institution as of October 1 of any year for which funds may be appropriated over the number enrolled on the base date. In the event funds are appropriated for expenditure pursuant to this section and funds are also appropriated, for the same fiscal year, for expenditure pursuant to G.S. 116‑19, students and licensure students who are enrolled at an institution in excess of the number enrolled on the base date may be counted under this section for the purpose of calculating the amount to be paid to the institution, but the same students and licensure students may also be counted under G.S. 116‑19, for the purpose of calculating payment to be made under that section."
SECTION 9.13.(c) G.S. 116‑21.1 reads as rewritten:
"§ 116‑21.1. Financial aid for North Carolina students and licensure students attending private institutions of higher education in North Carolina.
(a) Funds shall be appropriated each fiscal year in the Current Operations Appropriations Act to the Board of Governors of The University of North Carolina for aid to institutions and shall be disbursed in accordance with the provisions of G.S. 116‑19, 116‑21, and 116‑22.
(b) The funds appropriated in compliance with this section shall be placed in a separate, identifiable account in each eligible institution's budget or chart of accounts. All funds in the account shall be provided as scholarship funds for needy North Carolina students and licensure students during the fiscal year. Each student and licensure student awarded a scholarship from this account shall be notified of the source of the funds and of the amount of the award. Funds not utilized under G.S. 116‑19 shall be available for the tuition grant program as defined in G.S. 116‑21.2."
SECTION 9.13.(d) G.S. 116‑21.2 reads as rewritten:
"§ 116‑21.2. Legislative tuition grants to aid students and licensure students attending private institutions of higher education.
(a) In addition to any funds
appropriated pursuant to G.S. 116‑19 and in addition to all other
financial assistance made available to institutions, or to students persons
attending these institutions, there is granted to each full‑time
North Carolina undergraduate student attending an approved institution as
defined in G.S. 116‑22, a sum, to be determined by the General
Assembly for each academic year which shall be distributed to the full‑time
undergraduate student as provided by this subsection.
(a1) The legislative tuition grant provided by this section shall also be granted to each full‑time licensure student who is enrolled in a program intended to result in a license in teaching or nursing at an approved institution. The legislative tuition grant provided by this section shall be awarded on a pro rata basis to any licensure student who is enrolled less than full‑time in a program intended to result in a license in teaching or nursing at an approved institution. The legislative tuition grant and prorated legislative tuition grant authorized under this subsection shall be paid for undergraduate courses only.
(b) The tuition grants
provided for in this section shall be administered by the State Education
Assistance Authority pursuant to rules adopted by the State Education
Assistance Authority not inconsistent with this section. The State Education
Assistance Authority shall not approve any grant until it receives proper
certification from an approved institution that the student or licensure
student applying for the grant is an eligible student.eligible.
Upon receipt of the certification, the State Education Assistance Authority
shall remit at the times as it prescribes the grant to the approved institution
on behalf, and to the credit, of the student.student or licensure
student.
(c) In Except as
provided in subsection (a1) of this section, in the event a student on
whose behalf a grant has been paid is not enrolled and carrying a minimum
academic load as of the tenth classroom day following the beginning of the
school term for which the grant was paid, the institution shall refund the full
amount of the grant to the State Education Assistance Authority. If a licensure
student on whose behalf a prorated grant has been paid in accordance with
subsection (a1) of this section is not enrolled in the undergraduate class as
of the tenth classroom day following the beginning of the school term for which
the grant was paid, the institution shall refund the full amount of the grant
to the State Education Assistance Authority. Each approved institution
shall be subject to examination by the State Auditor for the purpose of
determining whether the institution has properly certified eligibility and
enrollment of students and licensure students and credited grants paid
on behalf of the students.them.
(d) In the event there are
not sufficient funds to provide each eligible student or licensure student
with a full grant:grant as provided by subsection (a) of this section
or a full or a prorated grant as provided by subsection (a1) of this section:
(1) The Board of Governors of
The University of North Carolina, with the approval of the Office of State
Budget and Management, may transfer available funds to meet the needs of the
programs provided by subsections (a) (a), (a1), and (b) of this
section; and
(2) Each eligible student and licensure student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
(e) Any remaining funds shall revert to the General Fund."
SECTION 9.13.(e) G.S. 116‑21.3 reads as rewritten:
"§ 116‑21.3. Legislative tuition grant limitations.
(a) For purposes of this section, an "off‑campus program" is any program offered for degree credit away from the institution's main permanent campus.
(b) No legislative tuition grant funds shall be expended for a program at an off‑campus site of a private institution, as defined in G.S. 116‑22(1), established after May 15, 1987, unless (i) the private institution offering the program has previously notified and secured agreement from other private institutions operating degree programs in the county in which the off‑campus program is located or operating in the counties adjacent to that county or (ii) the degree program is neither available nor planned in the county with the off‑campus site or in the counties adjacent to that county.
(c) Any member of the armed
services, as defined in G.S. 116‑143.3(a), abiding in this State
incident to active military duty, who does not qualify as a resident for
tuition purposes, as defined under G.S. 116‑143.1, is eligible for a
legislative tuition grant pursuant to this section if the member is enrolled as
a full‑time student.undergraduate student or as a licensure
student. The member's legislative tuition grant shall not exceed the cost
of tuition less any tuition assistance paid by the member's employer.
(d) A legislative tuition
grant authorized under G.S. 116‑21.2 G.S. 116‑21.2(a)
shall be reduced by twenty‑five percent (25%) for any individual
student who has completed 140 semester credit hours or the equivalent of 140
semester credit hours."
SECTION 9.13.(f) G.S. 116‑21.4(b) reads as rewritten:
"(b) Expenditures made pursuant to G.S. 116‑19, 116‑20, 116‑21.1, or 116‑21.2 shall not be used for any student or licensure student who:
(1) Is incarcerated in a State or federal correctional facility for committing a Class A, B, B1, or B2 felony; or
(2) Is incarcerated in a State or federal correctional facility for committing a Class C through I felony and is not eligible for parole or release within 10 years."
SECTION 9.13.(g) G.S. 116‑22 is amended by adding a new subdivision to read:
"(1b) 'Licensure student' shall mean a person who:
a. Has a bachelors degree;
b. Is enrolled either full‑time or less than full‑time in a program intended to result in licensure in teaching or nursing;
c. Attends an institution located in the State; and
d. Qualifies as a resident of North Carolina in accordance with definitions of residency that may from time to time be adopted by the Board of Governors of The University of North Carolina and published in the residency manual of the Board."
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.
NC Center for the Advancement of Teaching
SECTION 9.15.(a) G.S. 116‑74.6 reads as rewritten:
"§ 116‑74.6. North Carolina Center for the Advancement of Teaching established; powers and duties of trustees.
The sums of five hundred
thousand dollars ($500,000) in fiscal year 1985‑86 and two million
dollars ($2,000,000) in fiscal year 1986‑87 that are appropriated to the
Board of Governors of The University of North Carolina in Section 2 of the 1985‑87
Current Operations Appropriations Act shall be used to establish the North
Carolina Center for the Advancement of Teaching at Western Carolina University
in Jackson County.The Board of Governors of The University of North
Carolina established the North Carolina Center for the Advancement of Teaching pursuant
to Section 74 of S.L. 1985-479. The Center shall operate under the
general auspices be a center of The University of North Carolina
Board of Governors. It shall be the function of the North Carolina Center for
the Advancement of Teaching (hereinafter called "NCCAT"), through
itself or agencies with which it may contract, to provide career teachers with
opportunities to study advanced topics in the sciences, arts, and humanities
and to engage in informed discourse, assisted by able mentors and outstanding
leaders from all walks of life; and otherwise to offer opportunity for teachers
to engage in scholarly pursuits, through a center dedicated exclusively to the
advancement of teaching as an art and as a profession.
The Board of Governors of The University of North Carolina shall establish the North Carolina Center for the Advancement of Teaching Board of Trustees and shall delegate to the Board of Trustees all the powers and duties the Board of Governors considers necessary or appropriate for the effective discharge of the functions of NCCAT."
SECTION 9.15.(b) G.S. 116‑74.7 reads as rewritten:
"§ 116‑74.7. Composition of board of trustees; terms; officers.
(a) The NCCAT Board of Trustees shall be composed of the following membership:
(1) Three ex officio members:
the President of The University of North Carolina, the State Superintendent of
Public Instruction, and the Chancellor of Western Carolina University;University,
or their designees;
(2) Two members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate;
(3) Two members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives; and
(4) Eight members appointed by the Board of Governors, one from each of the eight educational regions.
The appointing authorities shall give consideration to assuring, through Board membership, the statewide mission of NCCAT.
(b) Members of the NCCAT Board of Trustees shall serve four‑year terms. Members may serve two consecutive four‑year terms. The Board shall elect a new chairman every two years from its membership. The Chairman may serve two consecutive two‑year terms as chairman.
(c) The chief
administrative officer of NCCAT shall be a director, who shall be appointed
by the NCCAT Board of Trustees.an executive director. The Board of
Governors of The University of North Carolina shall appoint the executive
director and set the compensation of the executive director on the
recommendation of the President of The University of North Carolina. The
President shall recommend the executive director from a list of not fewer than
two names nominated by the NCCAT Board of Trustees.
The executive director shall report to and serve at the pleasure of the President of The University of North Carolina; provided that the President shall not terminate the employment of the executive director without prior consultation with the NCCAT Board of Trustees."
SECTION 9.16.(a) G.S. 116‑74.42(c) reads as rewritten:
"(c) The Principal
Fellows Program shall provide a two‑year scholarship loan in the amount of
twenty thousand dollars ($20,000) per year, per recipient, specified in
subsection (c1) of this section to persons who may be eligible to be
selected as school administrators in the public schools of the State by
completing a full‑time program in school administration in an approved
program. Approved programs are those chosen by the Commission from among school
administrator programs within the State. No more than 200 principal fellow
scholarship loan awards shall be made in each year. The final number of
scholarship loan awards per year shall be made in accordance with the Board of
Governors' findings concerning the supply and demand of administrators, the
State's need for school administrator candidates and within funds appropriated
for the scholarship loans. Effective September 1, 1995, and in accordance with
school administrator training programs established by the Board of Governors of
The University of North Carolina, recipients shall be required to complete an
approved full‑time academic program during the first year of the
scholarship loan program and a full‑time internship during the second
year of the program. In order to attract fellows as interns, local school
administrative units may use all or part of the funds allotted for an assistant
principal salary for each intern accepted by the local school administrative
unit; however, interns shall not serve as assistant principals."
SECTION 9.16.(b) G.S. 116‑74.42 is amended by adding a new subsection to read:
"(c1) The scholarship loan shall be thirty thousand dollars ($30,000) per participant for the first year of participation. For the second year of participation, the amount of the scholarship loan per participant shall be sixty percent (60%) of the beginning salary for an assistant principal plus four thousand one hundred dollars ($4,100) for tuition, fees, and books. The Commission may adjust the amount of the scholarship loan specified in this subsection to take into account increases in tuition, fees, and the cost of books, increases in the State principal assistant salary schedule, and changes in the stipend paid to participants in the program during the second year internship."
SECTION 9.16.(c) This section is effective when it becomes law and applies to recipients of scholarship loans for the 2006‑2007 academic year and each subsequent academic year.
SECTION 9.17.(a) G.S. 116‑11(12b) reads as rewritten:
"(12b) The Board of Governors
of The University of North Carolina shall create a Board of Directors for designate
the UNC programs that will comprise the UNC Center for School Leadership
Development. The Board of Governors shall determine the powers and duties of
the Board of Directors. The Board of Governors shall submit to the
Governor and the General Assembly a single, unified recommended budget for the
continued operation and expansion of the programs in the Center for School
Leadership Development."
SECTION 9.17.(b) For fiscal year 2006‑2007, all funds appropriated to The University of North Carolina for the operations of the Principal's Executive Program, the Principal Fellows Program, NC TEACH, the Model Teacher Education Consortium, and the Math Science Education Network shall be combined into a single appropriation for the Center for School Leadership Development; provided that no funds which have been designated for scholarships, scholarship loans, or stipends for teachers or school administrators may be used for an administrative purpose.
SECTION 9.17.(c) G.S. 116‑30.01 is recodified as G.S. 115C‑296.4 and reads as rewritten:
"§ 115C‑296.4. North Carolina Teacher Academy Board of Trustees.
(a) The North Carolina Teacher Academy Board of Trustees shall establish a statewide network of high quality, integrated, comprehensive, collaborative, and substantial professional development for teachers, which shall be provided through summer programs. This network shall include professional development programs that focus on teaching strategies for teachers assigned to at‑risk schools.
(b) The Board of
Governors of The University of North Carolina shall delegate to the Board of
Trustees all the powers and duties the Board of Governors considers necessary
or appropriate for the effective discharge of the functions of the North
Carolina Teacher Academy.
(c) The Board of Trustees shall consist of 20 members appointed as follows:
(1) The Superintendent of Public Instruction or the Superintendent's designee;
(2) One member of the State Board of Education appointed by the Chair of the State Board;
(3) One member of
the Board of Governors of The University of North Carolina appointed by the
Chair of the Board of Governors;
(4) The Director of the North Carolina Center
for the Advancement of Teaching;
(5) Two deans of Schools
of One dean of a School of Education from one of the constituent institutions,
appointed by the President of The University of North Carolina;Governor;
(6) Four public school teachers appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120‑121, one of whom teaches in preschool through grade 2, one of whom teaches in grades 3 through 5, one of whom teaches in grades 6 through 8, and one of whom teaches on grades 9 through 12;
(7) Four public school teachers appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121, one of whom teaches in preschool through grade 2, one of whom teaches in grades 3 through 5, one of whom teaches in grades 6 through 8, and one of whom teaches on grades 9 through 12;
(8) Two Three public
school teachers appointed by the Governor;
(9) One superintendent of a local school administrative unit appointed by the Governor;
(10) Two public school principals appointed by the Governor; and
(11) The President of the North Carolina Association of Independent Colleges and Universities, or a designee.
(12) Two at-large members appointed by the Governor.
(d) Members appointed prior to September 1, 1995, shall serve until June 30, 1997, except that the terms of members appointed pursuant to subdivisions (6) and (7) of subsection (d) of this section shall expire June 30, 1995. Subsequent appointments shall be for four‑year terms, except that two of the members appointed by the 1995 General Assembly pursuant to subdivision (6) of subsection (d) of this section and two of the members appointed by the 1995 General Assembly pursuant to subdivision (7) of subsection (d) of this section shall serve for two‑year terms. The two new members under subdivision (c)(12) of this section shall serve initial terms beginning January 1, 2007, and ending June 30, 2010. The additional member appointed under subdivision (c)(8) of this section shall serve a term beginning January 1, 2007, and ending June 30, 2010. The designation of two deans serving under subdivision (c)(5) of this section shall expire December 31, 2006, and the Governor shall make a new appointment under that subdivision for a term beginning January 1, 2007, and ending June 30, 2010.
Members may serve two consecutive four‑year terms.
Legislative appointments shall be made in accordance with G.S. 120‑121. A vacancy in a legislative appointment shall be filled in accordance with G.S. 120‑122.
The Board of Trustees shall elect a new chair every two years from its membership. The chair may serve two consecutive two‑year terms as chair.
(e) The chief administrative
officer of the Teacher Academy shall be a an executive director
appointed by the Board of Trustees.
(f) The Board of
trustees shall collaborate and coordinate its programming with NCCAT [North
Carolina Center for the Advancement of Teaching]."
SECTION 9.17.(d) The North Carolina Teacher Academy and all resources, assets, liabilities, operations, and personnel are transferred and shall be located administratively under the State Board of Education but shall exercise its powers and duties independently of the State Board of Education through its own board of trustees. This transfer shall have all of the elements of a Type II transfer, as that term is defined in G.S. 143A‑6(b). Where a conflict arises regarding the transfer, the conflict shall be resolved by the Governor, and the decision of the Governor shall be final.
SECTION 9.17.(e) G.S. 126‑5 (c1) is amended by adding a new subdivision to read:
"(26) The Executive Director, associate and assistant directors, and instructional staff of the North Carolina Teacher Academy."
SECTION 9.17.(f) The North Carolina Teacher Academy shall report annually on or before October 1 to the Joint Legislative Education Oversight Committee its expenditures for the prior fiscal year. The first report shall be due no later than October 1, 2006, covering expenditures for the 2005‑2006 fiscal year.
SECTION 9.17.(g) Subsections (a) and (b) of this section become effective July 1, 2006. Subsections (c) through (e) of this section become effective January 1, 2007, except that the General Assembly and the Governor may make appointments prior to that date for terms to begin January 1, 2007. The remainder of this section is effective when it becomes law.
progress board funds must be matched
SECTION 9.18. Expansion budget funds appropriated to the Board of Governors of The University of North Carolina in this act for the North Carolina Progress Board shall be matched by funds from private sources on the basis of one dollar ($1.00) of private funds for every one dollar ($1.00) of State funds. Unmatched expansion budget funds shall revert to the General Fund at the end of the 2006‑2007 fiscal year.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
CHANGE REPORTING DATE OF AGING STUDY COMMISSION
SECTION 10.1. The third paragraph of Section 10.40A.(p) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.40A.(p)
…
The Department shall submit a
progress report to the North Carolina Study Commission on Aging and to the
Senate Appropriations Committee on Health and Human Services and to the House
of Representatives Subcommittee on Health and Human Services on or before April
1, 2006.January 1, 2007.
…"
RATE SETTING FOR CHILD CARING INSTITUTIONS
SECTION 10.2.(a) Section 10.47(b) of S.L. 2005‑276 is repealed.
SECTION 10.2.(b) G.S. 110‑93.1 is repealed.
SECTION 10.2.(c) G.S. 143B‑153(2) reads as rewritten:
"(2) The Social Services Commission shall have the power and duty to establish standards and adopt rules and regulations:
a. For the programs of public assistance established by federal legislation and by Article 2 of Chapter 108A of the General Statutes of the State of North Carolina with the exception of the program of medical assistance established by G.S. 108A‑25(b);
b. To achieve maximum cooperation with other agencies of the State and with agencies of other states and of the federal government in rendering services to strengthen and maintain family life and to help recipients of public assistance obtain self‑support and self‑care;
c. For the placement and supervision of dependent juveniles and of delinquent juveniles who are placed in the custody of the Department of Juvenile Justice and Delinquency Prevention, and payment of necessary costs of foster home care for needy and homeless children as provided by G.S. 108A‑48;
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 establishing standardized rates, the Commission shall consider the rate‑setting
recommendations provided by the Office of the State Auditor; and
e. For client assessment and independent case management pertaining to the functions of county departments of social services for public assistance programs authorized under paragraph a. of this subdivision."
SECTION 10.2.(d) The effective date for establishing standardized rates for child caring institutions in this State, as enacted in subsection (c) of this section, shall be July 1, 2007.
SECTION 10.3.(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. – Except as otherwise provided in this act, the State shall pay eighty‑five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section. In addition, the State shall pay eighty‑five percent (85%); the county shall pay fifteen percent (15%) of the federal Medicare Part D clawback payments under the Medicare Modernization Act of 2004.
(3) Funds for Development and Acquisition of Equipment and Software. – If first approved by the Office of State Budget and Management, the Division of Medical Assistance, Department of Health and Human Services, may use funds that are identified to support the cost of development and acquisition of equipment and software through contractual means to improve and enhance information systems that provide management information and claims processing. The Department of Health and Human Services shall identify adequate funds to support the implementation and first year's operational costs that exceed the currently allocated funds for the new contract for the fiscal agent for the Medicaid Management Information System.
(4) Reports. – Unless otherwise provided, whenever the Department of Health and Human Services is required by this section to report to the General Assembly, the report shall be submitted to the House of Representatives Appropriations Subcommittee for Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division of the Legislative Services Office. Reports shall be submitted on the date provided in the reporting requirement.
(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, occupational 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, 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 licensed or certified by the occupational licensing board or the certification authority having authority over the provider's license or certification. 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.
INFLATIONARY INCREASES FOR MEDICAID PROVIDERS
SECTION 10.3A. Effective for the 2006‑2007 fiscal year, the Secretary of the Department of Health and Human Services shall develop a plan to allocate funds available for inflationary increases among groups of Medicaid providers in accordance with the interim report from the study of Medicaid provider rates authorized in Section 10.11 of this act. Before submitting the proposed allocation plan to the Centers for Medicare/Medicaid Services ("CMS"), and not later than December 15, 2006, the Secretary shall consult with the Joint Legislative Commission on Governmental Operations ("Commission") and present the proposed allocation plan.
Based on the Secretary's allocation plan, inflationary increases shall become effective on January 1, 2007, or when State plan amendments have been approved by CMS retroactive to January 1, 2007, whichever occurs last.
PROCEDURES FOR CHANGES TO DHHS MEDICAL POLICY
SECTION 10.4. Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑54.2. Procedures for changing medical policy.
The Department shall develop, amend, and adopt medical coverage policy in accordance with the following:
(1) During the development of new medical coverage policy or amendment to existing medical coverage policy, consult with and seek the advice of the Physician Advisory Group of the North Carolina Medical Society and other organizations the Secretary deems appropriate. The Secretary shall also consult with and seek the advice of officials of the professional societies or associations representing providers who are affected by the new medical coverage policy or amendments to existing medical coverage policy.
(2) At least 45 days prior to the adoption of new or amended medical coverage policy, the Department shall:
a. Publish the proposed new or amended medical coverage policy on the Department's Web site;
b. Notify all Medicaid providers of the proposed, new, or amended policy; and
c. Upon request, provide persons copies of the proposed medical coverage policy.
(3) During the 45‑day period immediately following publication of the proposed new or amended medical coverage policy, accept oral and written comments on the proposed new or amended policy.
(4) If, following the comment period, the proposed new or amended medical coverage policy is modified, then the Department shall, at least 15 days prior to its adoption:
a. Notify all Medicaid providers of the proposed policy;
b. Upon request, provide persons notice of amendments to the proposed policy; and
c. Accept additional oral or written comments during this 15‑day period."
SECTION 10.5.(a) G.S. 108A‑58 is repealed.
SECTION 10.5.(b) Part 6 of Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑58.1. Ineligibility for medical assistance based on transferring assets for less than fair market value.
(a) General Rule. – Except as otherwise provided herein, an individual who is otherwise eligible to receive medical assistance under this Part is ineligible for Medicaid coverage and payment for the services specified in subsection (d) during the period specified in subsection (c) if the individual or the individual's spouse transfers an asset for less than fair market value on or after the "lookback date" specified in subsection (b).
(b) Lookback Date. –
(1) Except as otherwise provided herein, the lookback date is the date specified in 42 U.S.C. § 1396p(c)(1)(B).
(2) Notwithstanding subdivision (1), the lookback date with respect to the medical services specified in subdivision (d)(2) is the date specified in 42 U.S.C. § 1396p(c)(1)(B) or February 1, 2003, whichever is later.
(c) Penalty Period. – The penalty period for the transfer of assets for less than fair market value is the period specified in 42 U.S.C. § 1396p(c)(1)(D), (E), and (H).
(d) Medical Services. –
(1) In the case of an institutionalized individual, the transfer of assets penalty applies with respect to nursing facility services, a level of care in any institution equivalent to that of nursing facility services, and to home‑ or community‑based services furnished under the State's Community Alternatives Program waiver pursuant to 42 U.S.C. § 1396n(c) or (d).
(2) In the case of a noninstitutionalized individual, the transfer of assets penalty applies with respect to home health services and personal care services as defined in 42 U.S.C. § 1396d(a)(7) and (24) and, to the extent permitted by federal law, such other long‑term care services specified by rules adopted by the Department of Health and Human Services pursuant to subsection (k) of this section.
(e) Assets. – Assets are the income and resources of an individual or the individual's spouse (including the individual's or spouse's home) as defined in 42 U.S.C. § 1396p(h) and 42 U.S.C. § 1396p(c)(1)(G), (I), and (J).
(f) Fair Market Value and Uncompensated Value. –
(1) The fair market value of an asset is the value (minus any valid and legally enforceable liens, mortgages, and encumbrances against the asset) that would have been received if the asset had been sold for good and valuable consideration at the prevailing market price at the time the asset was transferred. In the case of real or personal property that is taxable under Subchapter II of Chapter 105 of the General Statutes, there is a rebuttable presumption that the fair market value of the property is its most recent value as ascertained under Subchapter II of Chapter 105 of the General Statutes (minus any valid and legally enforceable liens, mortgages, and encumbrances against the property).
(2) The uncompensated value of an asset is its fair market value minus the amount of good and valuable consideration received in exchange for the asset's transfer.
(g) Individual. – An individual is a person who applies for or is receiving medical assistance under this Part regardless of whether the person was, at the time an asset was transferred, a Medicaid applicant or recipient. The term "individual" also includes an individual's legal representative, anyone acting at the individual's direction or request, and any person, agency, or court acting lawfully on behalf of the individual.
(h) Institutionalized and Noninstitutionalized Individuals. –
(1) An institutionalized individual is an individual who meets the criteria set forth in 42 U.S.C. § 1396p(h)(3), regardless of whether the individual was institutionalized at the time an asset was transferred.
(2) A noninstitutionalized individual is any individual who (i) is not an institutionalized individual, (ii) is an aged, blind, or disabled person who is categorically or medically needy pursuant to 42 C.F.R. § 120 or a qualified Medicare beneficiary as defined in 42 U.S.C. § 1396d(p)(1), and (3) is not eligible for medical assistance under this Part based on his or her eligibility for an optional State supplement pursuant to 42 C.F.R. § 435.232.
(i) Exceptions. –
(1) This section does not apply if an individual establishes by the greater weight of the evidence that the transfer was exclusively for some purpose other than establishing or retaining eligibility for medical assistance under this Part.
(2) This section does not apply to any transfer specified in 42 U.S.C. § 1396p(c)(2)(A), (B), (C)(i), or (C)(iii).
(j) Application to Life Estates and Income Producing Real Property. – The Department of Health and Human Services may apply federal transfer of assets policies in accordance with this section to (i) life estates purchased by or on behalf of the recipient, and (ii) to real property excluded as "income producing", tenancy‑in‑common, or as nonhomesite property made "income producing." The transfer of assets policy shall apply only to an institutionalized individual or the individual's spouse, as defined in subsection (h) of this section. The Department shall exclude from countable resources any life estate in real property that is in the recipient's home and is measured by the recipient's life. Federal transfer of assets policies applied to income producing real property shall become effective not earlier than October 1, 2001. Federal transfer of assets policies applied to real property excluded as tenancy‑in‑common, or as nonhomesite property made income producing in accordance with this subsection, shall become effective not earlier than October 1, 2005.
(k) Hardship Waiver. – The Department of Health and Human Services shall waive a transfer of assets penalty that has been imposed or is imposable under this section if the Department determines that imposition of the penalty would create an undue hardship.
(l) Rules and Compliance with Federal Law. –
(1) This section shall be interpreted and administered consistently with governing federal law, including 42 U.S.C. § 1396p(c).
(2) The Department of Health and Human Services shall determine and publish at least annually the average monthly cost of nursing facility services for private patients that will be used in determining the length of a penalty period under this section.
(3) The Department of Health and Human Services shall provide for a hardship waiver process in accordance with 42 U.S.C. § 1396p(c)(2)(D).
(4) The Department of Health and Human Services may adopt administrative rules that are necessary and appropriate to implement this section or the requirements of 42 U.S.C. § 1396p(c) or other federal laws governing the transfer of assets and Medicaid eligibility."
MEDICAID DUALLY ELIGIBLE TO ENROLL IN MEDICARE PARTS B AND D
SECTION 10.6. G.S. 108A‑55.1 reads as rewritten:
"§ 108A‑55.1. Medicare enrollment required.
The Department shall require State
Medical Assistance Program recipients who qualify for Medicare to enroll in
Medicare, in accordance with Title XIX of the Social Security Act, in order to
pay medical expenditures that qualify for payment under Medicare Part B. Parts
B and D, except that enrollment in Part D is not required if the recipient has
creditable prescription drug coverage as defined by federal law.
Failure to enroll in Medicare
shall result in nonpayment of these expenditures under the State Medical
Assistance Program. A provider may seek payment for services from Medicaid
enrollees who are eligible for but not enrolled in Medicare Part B
Parts B and D."
MEDICAID RESERVE FUND TRANSFER
SECTION 10.7.(a) Of the funds transferred to the Department of Health and Human Services for Medicaid programs pursuant to G.S. 143‑23.2, the sum of fifty three million dollars ($53,000,000) 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. The Department may use funds in the Medicaid Trust Fund and not appropriated by law for other purposes to fund the settlement of the Disproportionate Share Hospital payment audit issues between the Department of Health and Human Services and the federal government related to fiscal years 1997‑2002.
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).
PILOT PROJECTS TO CONTROL COST AND IMPROVE QUALITY OF CARE FOR AGED, BLIND, AND DISABLED MEDICAID RECIPIENTS
SECTION 10.7A.(a) Section 10.17.(a) of S.L. 2005-276 reads as rewritten:
"SECTION 10.17.(a) The Department of Health and Human Services shall expand the scope of Community Care of NC care management model to recipients of Medicaid and dually eligible individuals with a chronic condition and long‑term care needs. In expanding the scope, the Department shall focus on the Aged, Blind, and Disabled, and CAP‑DA populations for improvement in management, cost‑effectiveness, and local coordination of services through Community Care of NC and in collaboration with local providers of care. The Department shall target personal care services, private duty nursing, home health, durable medical equipment, ancillary professional services, specialty care, residential services, including skilled nursing facilities, home infusion therapy, pharmacy, and other services determined target‑worthy by the Department. The Department shall pilot communitywide initiatives and shall expand statewide successful models. The initiatives may include one or more pilot projects to control costs and improve quality of care for the aged, blind, and disabled recipients of Medicaid."
SECTION 10.7A.(b) Section 10.14 of S.L. 2005-276 reads as rewritten:
"SECTION 10.14. The
Department of Health and Human Services may use not more than three million
dollars ($3,000,000) in the 2005‑2006 fiscal year and not more than three
million dollars ($3,000,000) in the 2006‑2007 fiscal year in Medicaid
funds budgeted for program services to support the cost of administrative
activities when cost‑effectiveness and savings are demonstrated. The
funds shall be used to support activities that will contain the cost of the
Medicaid Program, including contracting for services or hiring additional
staff.services, hiring additional staff, or providing grants through the
Office of Rural Health and Community Care to plan, develop, and implement cost‑containment
programs.
Medicaid cost‑containment activities may include prospective reimbursement methods, incentive‑based reimbursement methods, service limits, prior authorization of services, periodic medical necessity reviews, revised medical necessity criteria, service provision in the least costly settings, plastic magnetic stripped Medicaid identification cards for issuance to Medicaid enrollees, fraud detection software or other fraud detection activities, technology that improves clinical decision making, credit balance recovery and data mining services, and other cost‑containment activities. Funds may be expended under this section only after the Office of State Budget and Management has approved a proposal for the expenditure submitted by the Department. Proposals for expenditure of funds under this section shall include the cost of implementing the cost‑containment activity and documentation of the amount of savings expected to be realized from the cost‑containment activity. The Department shall provide a copy of proposals for expenditures under this section to the Fiscal Research Division."
REQUIRED DATA SHARING BY PRIVATE HEALTH INSURERS
SECTION 10.8. Part 1 of Article 50 of Chapter 58 of the General Statutes is amended by adding the following new section to read:
"§ 58‑50‑46. Insurers to provide certain information to Department of Health and Human Services.
(a) As used in this section, the terms:
(1) 'Department' means the Department of Health and Human Services.
(2) 'Division' means the Division of Medical Assistance of the Department of Health and Human Services.
(3) 'Health insurer' includes self‑insured plans, group health plans (as defined in section 607(1) of the Employee Retirement Income Security Act of 1974, [29 USC Section 1167(1)]), service benefit plans, managed care organizations, or other parties that are, by statute, contract, or agreement, legally responsible for payment of a claim for a health care item or service as a condition of doing business in the State.
(4) 'Medical assistance' means medical assistance benefits provided under the State Medical Assistance Plan.
(b) Health insurers, and pharmacy benefit managers regulated as third-party administrators under Article 56 of Chapter 58 of the General Statutes, shall provide, with respect to individuals who are eligible for, or are provided, medical assistance, upon request of the Division, information to determine during what period the individual or the individual's spouse or dependents may be (or may have been) covered by a health insurer and the nature of the coverage that is or was provided by the health insurer (including the name, address, and identifying number of the plan) in a manner prescribed by the Division. Notwithstanding any other provision of law, every insurer issuing a health benefit plan shall provide, not more frequently than twelve times in a year and at no cost, to the Department of Health and Human Services, upon its request, information, including automated data matches conducted under the direction of the Department of Health and Human Services, Division of Medical Assistance, as necessary to (i) identify individuals covered under the insurer's health benefit plans who are also recipients of medical assistance; (ii) determine the period during which the individual or the individual's spouses or the individual's dependents may be or may have been covered by the health benefit plan; and (iii) determine the nature of the coverage. To facilitate the Division in obtaining this and other related information, every health insurer shall:
(1) Cooperate with the Division to determine whether a named individual who is a recipient of medical assistance may be covered under the insurer's health benefit plan and eligible to receive benefits under the health benefit plan for services provided under the State Medical Assistance Plan.
(2) Respond to the request for information within 90 working days after receipt of written proof of loss or claim for payment for health care services provided to a recipient of medical assistance who is covered by the insurer's health benefit plan.
(3) Accept the Division's right of recovery and the assignment to the Division of any right of an individual or other entity to payment from the party for an item or service for which payment has been made under the State Medical Assistance Plan.
(4) Respond to any inquiry by the Division regarding a claim for payment for any health care item or service that is submitted not later than three years after the date of the provision of the health care item or service.
(5) Agree not to deny a claim submitted by the Division solely on the basis of the date of submission of the claim, the type of format of the claim form, or a failure to present property documentation at the point‑of‑sale that is the basis of the claim, if:
a. The claim is submitted by the Division within the three‑year period beginning on the date on which the item or service was furnished; and
b. Any action by the Division to enforce its rights with respect to such claim is commenced within six years of the Division's submission of the claim.
(c) An insurer that complies with this section shall not be liable on that account in any civil or criminal actions or proceedings."
TICKET TO WORK EFFECTIVE DATE CHANGE
SECTION 10.9.(a) Section 10.18(c) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.18.(c)
Subsection (b) of this section becomes effective July 1, 2006. Subsection (a)
of this section becomes effective 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 STUDY 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 study strategies for assisting pharmacists in providing these services to Medicaid recipients enrolled in Medicare Part D. In studying the strategies, the Department shall specifically address the special circumstances of pharmacists that provide pharmacy services to long‑term care facilities. Among the strategies to be considered are those that address pharmacies adversely affected by the additional costs such that they may remain in business and thus continue to provide pharmacy services throughout the State. As part of this effort, the Department shall also assess 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.
ONE‑TIME CAP ON MEDICAID COUNTY SHARE
SECTION 10.9E.(a) It is the intent of the General Assembly to provide sufficient funds for one-time assistance to counties with respect to the county share of the nonfederal share of Medical Assistance payments for the 2006‑2007 fiscal year. To this end, the General Assembly estimates that the cost of the State maintaining the county share of the nonfederal share of Medical Assistance payments, excluding administrative costs, at the 2005‑2006 level will not exceed twenty‑seven million four hundred thousand dollars ($27,400,000) for the 2006‑2007 fiscal year.
SECTION 10.9E.(b) Notwithstanding any other provision of law to the contrary and subject to the limitations in subsection (d) of this section, each county's portion of the nonfederal share of Medical Assistance payments, excluding administrative costs, for the 2006‑2007 fiscal year only, shall not exceed the amount paid by the county for the nonfederal share of Medical Assistance payments, excluding administrative costs, for the 2005‑2006 fiscal year. In the event a county's portion of the nonfederal share of Medical Assistance payments, excluding administrative costs, is less in fiscal year 2006‑2007 than the county share paid for fiscal year 2005‑2006, then the county's share for the 2006‑2007 fiscal year shall be the lower amount.
SECTION 10.9E.(c) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, a sum not to exceed twenty‑seven million four hundred thousand dollars ($27,400,000) in nonrecurring funds for the 2006‑2007 fiscal year shall be used to cover the increased cost to the State resulting from the one‑time assistance for the county share provided under this section.
SECTION 10.9E.(d) If fifteen percent (15%) of the nonfederal share of total Medical Assistance payments in the 2006‑2007 fiscal year exceeds the amount of the nonfederal share paid by counties in fiscal year 2005‑2006 plus the twenty‑seven million four hundred thousand dollars ($27,400,000) in nonrecurring funds appropriated in this act for this purpose, then the county share for 2006‑2007 shall be fifteen percent (15%) of the amount by which the nonfederal share of total Medical Assistance payments exceeds the amount appropriated in this act for the one-time assistance plus the amount paid by the counties in the 2005‑2006 fiscal year.
SECTION 10.9E.(e) If less than twenty‑seven million four hundred thousand dollars ($27,400,000) in nonrecurring funds for the 2006‑2007 fiscal year is needed for one-time assistance for the county share, then funds remaining shall revert to the General Fund.
SECTION 10.9E.(f) The Department of Health and Human Services shall continue to track, on a monthly basis, each county's portion of the nonfederal share of Medical Assistance payments, excluding administrative costs, in fiscal year 2006‑2007 as if the counties were still paying fifteen percent (15%) of all applicable nonfederal costs. The Department shall report on a monthly basis to the Fiscal Research Division each county's portion of the nonfederal share of Medical Assistance payments, excluding administrative costs, as determined by this section.
SECTION 10.9E.(g) For purposes of this section:
(1) "Medical Assistance payments" include Medicare Part D payments.
(2) Medical Assistance payments in fiscal year 2005‑2006 represent the sum of 12 county warrants for Medicaid expenditures from June 2005, through May 2006. Medical Assistance payments in fiscal year 2006‑2007 represent the sum of the 12 warrants for Medicaid expenditures from June 2006, through May 2007.
STATE/COUNTY SPECIAL ASSISTANCE
SECTION 10.9F.(a) Effective January 1, 2007, 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.
SECTION 10.9F.(b) Effective July 1, 2007, the Department of Health and Human Services shall recommend rates for State/County Special Assistance and for Adult Care Home Personal Care Services. The Department may recommend separate rates for residents of special care units. The Department shall recommend rates using appropriate cost modeling methodology and cost reports submitted by adult care homes that receive State/County Special Assistance funds and shall ensure that cost reporting is done for State/County Special Assistance and Adult Care Home Personal Care Services to the same standards as apply to other residential service providers.
SECTION 10.9F.(c) The Department of Health and Human Services shall assure coordination of the State/County Special Assistance rate and the Adult Care Home Personal Care Services rate with the Division of Aging and Adult Services, the Division of Medical Assistance, and the Office of the Controller.
PUBLIC‑PRIVATE LONG‑TERM CARE PARTNERSHIP PROGRAM
SECTION 10.10. The Department of Health and Human Services shall, pursuant to authority under section 1917(b) of the Social Security Act (42 USC § 1396p(c)), as amended by Public Law 109‑171 effective January 1, 2007, develop a North Carolina Long‑Term Care Partnership Program. The purpose of the Program is to reduce future Medicaid costs for long‑term care by delaying or eliminating dependence on Medicaid. The Department shall structure and administer the Program in accordance with applicable federal law and guidelines for qualified State long‑term care partnerships. The Program, including the treatment of assets for Medicaid eligibility and estate recovery, notwithstanding statutory provisions on treatment of assets and estate recovery to the contrary, shall offer incentives to individuals to ensure against the substantial costs of providing for their long‑term care needs. The Department shall submit the proposed Program 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 prior to submitting the Program for federal approval of the necessary State Plan amendment. The Program shall not become effective until reviewed in accordance with this section.
STUDY MEDICAID PROVIDER RATE INCREASES
SECTION 10.11.(a) The Secretary of the Department of Health and Human Services shall study and develop a proposal for an equitable standard for providing inflationary increases and other cost‑related increases to service providers in the Medicaid program. The Department shall seek the assistance of external consultants and other appropriate financial experts and affected parties to validate any methodologies used in the development of the standard.
SECTION 10.11.(b) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of one hundred thousand dollars ($100,000) for the 2006‑2007 fiscal year shall be used to support the study. Not later than March 1, 2007, the Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on the findings and recommendations of the study.
SECTION 10.11.(c) The Department of Health and Human Services, Office of Internal Auditor, and Division of Medical Assistance shall study the reimbursement system for skilled nursing facilities and develop recommendations regarding rebasing the payment rates for the 2006‑2007 fiscal year. The Department's shall report its recommendations to the Joint Legislative Commission on Governmental Operations, the Senate Appropriations Committee on Health and Human Services, the House Appropriations Committee on Health and Human Services, and the Fiscal Research Division on or before November 1, 2006.
INCREASE HEALTH CARE ACCESS FOR UNINSURED PERSONS
SECTION 10.12.(a) The Secretary of the Department of Health and Human Services shall develop a plan to expand health care access for uninsured North Carolinians through the use of public/private partnerships, federal flexibility and resources, and promotion of charity care by health care providers. The goals of the plan are to:
(1) Aid small businesses that want to provide health care coverage.
(2) Expand health care coverage for the working uninsured persons.
(3) Secure all available federal funds to support the program.
(4) Promote charity care by health care providers.
SECTION 10.12.(b) In developing the plan, the Secretary shall:
(1) Consider findings and recommendations of previous studies on increased access to health care and covering the uninsured to determine their feasibility.
(2) Draw on the experience of other states that have successfully increased access to health care and covered the uninsured.
(3) Determine waivers necessary to secure federal funding available through 1115 Demonstration Waivers and other federal waivers to cover the uninsured.
(4) Explore options such as those available through the Deficit Reduction Act of 2005 (DEFRA) to adjust Medicaid eligibility and benefits to cover the uninsured.
(5) Consider the use of existing funding that might be used to leverage additional federal matching funds including certified public expenditures (CPE), and appropriate federal Disproportionate Share Hospital Program (DSH) funds.
(6) Pursue an agreement with the Centers for Medicare and Medicaid Services (CMS) to develop a methodology for investing Medicare savings realized from the expansion of the scope of Community Care of North Carolina Program to help fund the plan; and
(7) Determine in conjunction with the Office of State Budget and Management the fiscal impact of the plan for a five‑year period.
SECTION 10.12.(c) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Medical Assistance, the sum of one hundred thousand dollars ($100,000) for the 2006‑2007 fiscal year shall be used to support the development of the plan. The proposed plan shall be submitted to the 2007 General Assembly not later than March 1, 2007.
HEALTH INFORMATION SYSTEMS (HIS) FUNDS
SECTION 10.13.(a) The sum of nine million eight hundred thirty‑five thousand seven hundred ninety‑five dollars ($9,835,795) is appropriated from Budget Code 24430, Fund Code 2117, to the Department of Health and Human Services, Division of Public Health, for the 2006‑2007 fiscal year. These funds shall be used for the development and implementation of the Health Information Systems (HIS), an initiative that will provide an automated means of capturing, monitoring, reporting, and billing services provided in local health departments, CDSAs, and the State Public Health Lab. The HIS will allow for interfaces to local health departments' own vendor systems and is intended to replace the outdated Health Services Information System. Allocation of these funds is contingent upon full compliance with the reporting requirements of Section 10.59A.(b) of S.L. 2005‑276 and the identification of total estimated costs and future funding sources.
SECTION 10.13.(b) The Department of Health and Human Services, Division of Public Health, shall report on the use of these funds to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division not later than March 1, 2007.
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."
EDUCATION ON PREVENTION OF PRETERM BIRTHS
SECTION 10.17. Of the funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, the sum of one hundred fifty thousand dollars ($150,000) for the 2006‑2007 fiscal year shall be used to provide education to women on the benefits of progesterone for those who have had preterm births and to purchase medication for eligible minority and low‑income women until the medication becomes readily available through the Medicaid Program. The Division of Public Health shall evaluate the impact of the use of these funds and shall share the outcomes of the evaluation with the Division of Medical Assistance, the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
COMMUNITY‑FOCUSED ELIMINATING HEALTH DISPARITIES INITIATIVE
AUTHORIZE ONE NEW POSITION FOR HEALTHY CAROLINIANS INITIATIVE
SECTION 10.18A. The Department of Health and Human Services, Division of Public Health, may use funds appropriated to the Division of Public Health for the Healthy Carolinians Initiative for the 2006‑2007 fiscal year to support one new position for the Healthy Carolinians Initiative.
CLARIFICATION OF CERTAIN AUDIT REQUIREMENTS
SECTION 10.19. G.S. 143B‑139.4.(b) reads as rewritten:
"(b) A private, nonprofit organization that receives employee assistance or other appropriate services in accordance with subsection (a) of this section, shall document all contributions received, including employee time, supplies, materials, equipment, and physical space. The documentation shall also provide an estimated value of all contributions received as well as any compensation paid to or bonuses received by State employees. This documentation shall be submitted annually to the Secretary of the Department of Health and Human Services in a format approved by the Secretary. Nonprofit organizations with less than five hundred thousand dollars ($500,000) in annual income shall submit an affidavit or annual audit 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, within six months from the nonprofit's fiscal year end. 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.
PRIVATE WELL‑WATER TESTING FEE
SECTION 10.20.(a) G.S. 130A‑5 is amended by adding the following new subdivision to read:
"§ 130A‑5. Duties of the Secretary.
The Secretary shall have the authority:
…
(16) To charge a fee of up to fifty‑five dollars ($55.00) for analyzing private well‑water samples sent to the State Laboratory of Public Health by local health departments. The fee shall be imposed only for analyzing samples from newly constructed wells. The fee shall be computed annually by the Director of the State Laboratory of Public Health by analyzing the previous year's testing at the State Laboratory of Public Health, and applying the amount of the total cost of the private well‑water testing, minus State appropriations that support this effort. The fee includes the charge for the private well‑water panel test kit."
SECTION 10.20.(b) The Department of Health and Human Services, Division of Public Health, shall use funds available for the 2006‑2007 fiscal year to pay for positions for the private well water safety program authorized in the Current Operations and Capital Improvements Appropriations Act of 2006. Funds realized from fees collected during the 2006‑2007 fiscal year shall be used to replace available funds authorized under this subsection and allocated for positions authorized for the private well water safety program for the 2006‑2007 fiscal year.
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."
TECHNICAL CORRECTION TO LICENSURE FEE LIMITS
SECTION 10.22. G.S. 131E‑267 reads as rewritten:
"§ 131E‑267. Fees for departmental review of health care facility construction projects.
The Department of Health and Human
Services shall charge a fee for the review of each health care facility
construction project to ensure that project plans and construction are in
compliance with State law. The fee shall be charged on a one‑time, per‑project
basis, as follows, and shall not exceed twelve thousand five hundred dollars
($12,500)twenty‑five thousand dollars ($25,000) for any single
project:
Institutional Project Project Fee
Hospitals $ 300.00 plus $0.20/square foot of project space
Nursing Homes $ 250.00 plus $0.16/square foot of project space
Ambulatory Surgical Facility $ 200.00 plus $0.16/square foot of project space
Psychiatric Hospital $ 200.00 plus $0.16/square foot of project space
Adult Care Home
7 or more beds $ 175.00 plus $0.10/square foot of project space
Residential Project Project Fee
Family Care Homes $ 175.00 flat fee
ICF/MR Group Homes $ 275.00 flat fee
Group Homes: 1‑3 beds $ 100.00 flat fee
Group Homes: 4‑6 beds $ 175.00 flat fee
Group Homes: 7‑9 beds $ 225.00 flat fee
Other residential:
More than 9 beds $ 225.00 plus $0.075/square foot of project space."
CLARIFICATION OF FEES FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICE FACILITIES
SECTION 10.23. G.S. 122C‑23(h) reads as rewritten:
"(h) The Department shall
charge facilities licensed under this Chapter that have licensed beds a
nonrefundable annual base license fee plus a nonrefundable annual per‑bed
fee as follows:
Type of Facility Number of Beds Base Fee Per‑Bed Fee
Facilities (non ICF/MR): 0 beds $175.00 $0
Facilities (non‑ICF/MR):
6
of fewer
1 to 6 beds $250.00 $0
More than 6 beds $350.00 $12.50
ICF/MR Only: 6
or fewer
1 to 6 beds $650.00 $0
More than 6 beds $650.00 $12.50"
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 section. As used in this section, 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 for consultants to aid the Division and LMEs 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 enter into one or more personal services contracts to provide technical assistance to Local Management Entities to develop and implement the crisis plans required under subsection (a) 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. 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) No later than August 15, 2006, the Secretary shall designate between 15 and 25 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, but that provides adequate access to a facility by all consumers in the State. The Secretary shall consult with LMEs in determining the regional groupings. The Secretary shall also take into consideration geographical factors, prior LME groupings and partnerships, and existing community facilities.
SECTION 10.26.(d) With the assistance of the consultant, the area authorities and county programs within a crisis region shall work together to identify gaps in their ability to provide a continuum of crisis services for all consumers and use the funds allocated to them to develop and implement a plan to address those needs. At a minimum, the plan must address the development over time of the following components: 24‑hour crisis telephone lines, walk‑in crisis services, mobile crisis outreach, crisis respite/residential services, crisis stabilization units, 24‑hour beds, facility‑based crisis, in‑patient crisis, and transportation. Options for voluntary admissions to a secured facility must include at least one service appropriate to address the mental health, developmental disability, and substance abuse needs of adults, and the mental health, developmental disability, and substance abuse needs of children. Options for involuntary commitment to a secured facility must include at least one option in addition to admission to a State facility.
If all area authorities and county programs in a crisis region determine that a facility‑based crisis center is needed and sustainable on a long‑term basis, the crisis region shall first attempt to secure those services through a community hospital or other community facility. If all the area authorities and county programs in the crisis region determine the region's crisis needs are being met, the area authorities and county programs may use the funds to meet local crisis service needs.
SECTION 10.26.(e) Each LME shall submit its crisis services plan to the Secretary for review no later than March 1, 2007. The plan shall take into consideration and attempt to utilize all other sources of funds in addition to the funds appropriated under this section. The Secretary shall review each plan to determine whether it meets all the requirements of this section. If the Secretary approves the plan, the LME shall receive implementation funding.
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.
SECTION 10.26.(f) LMEs shall report monthly to the Department and to the consultant 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 requirements under this subsection shall expire July 1, 2008.
EXTEND SUNSET FOR FIRST COMMITMENT PILOT PROGRAM
SECTION 10.27. S.L. 2003‑178 reads as rewritten:
"SECTION 1. The Secretary of Health and Human Services may, upon request of a phase‑one local management entity, waive temporarily the requirements of G.S. 122C‑261 through G.S. 122C‑263 and G.S. 122C‑281 through G.S. 122C‑283 pertaining to initial (first‑level) examinations by a physician or eligible psychologist of individuals meeting the criteria of G.S. 122C‑261(a) or G.S. 122C‑281(a), as applicable, as follows:
(1) The Secretary has received a request from a phase‑one local management entity to substitute for a physician or eligible psychologist, a licensed clinical social worker, a masters level psychiatric nurse, or a masters level certified clinical addictions specialist to conduct the initial (first‑level) examinations of individuals meeting the criteria of G.S. 122C‑261(a) or G.S. 122C‑281(a). The waiver shall be implemented on a pilot‑program basis. The request from the local management entity shall be submitted as part of the entity's local business plan and shall specifically describe:
a. How the purpose of the statutory requirement would be better served by waiving the requirement and substituting the proposed change under the waiver.
b. How the waiver will enable the local management entity to improve the delivery or management of mental health, developmental disabilities, and substance abuse services.
c. How the services to be provided by the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist under the waiver are within each of these professional's scope of practice.
d. How the health, safety, and welfare of individuals will continue to be at least as well protected under the waiver as under the statutory requirement.
(2) The Secretary shall review the request and may approve it upon finding that:
a. The request meets the requirements of this section.
b. The request furthers the purposes of State policy under G.S. 122C‑2 and mental health, developmental disabilities, and substance abuse services reform.
c. The request improves the delivery of mental health, developmental disabilities, and substance abuse services in the counties affected by the waiver and also protects the health, safety, and welfare of individuals receiving these services.
d. The duties and responsibilities performed by the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist are within the individual's scope of practice.
(3) The Secretary shall evaluate the effectiveness, quality, and efficiency of mental health, developmental disabilities, and substance abuse services and protection of health, safety, and welfare under the waiver. The Secretary shall send a report on the evaluation to the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substances Abuse Services on or before July 1, 2006.
(4) The waiver granted by the
Secretary under this section shall be in effect for a period not to exceed
three years, or the period for which the requesting local management entity's
business plan is approved, whichever is shorter.until October 1, 2007.
(5) The Secretary may grant a waiver under this section to up to five local management entities that have been designated as phase‑one entities as of July 1, 2003.
(6) In no event shall the substitution of a licensed clinical social worker, masters level psychiatric nurse, or masters level certified clinical addictions specialist under a waiver granted under this section be construed as authorization to expand the scope of practice of the licensed clinical social worker, the masters level psychiatric nurse, or the masters level certified clinical addictions specialist.
(7) The Department shall assure that staff performing the duties are trained and privileged to perform the functions identified in the waiver. The Department shall involve stakeholders including, but not limited to, the North Carolina Psychiatric Association, The North Carolina Nurses Association, National Association of Social Workers, The North Carolina Substance Abuse Professional Certification Board, North Carolina Psychological Association, The North Carolina Society for Clinical Social Work, and the North Carolina Medical Society in developing required staff competencies.
(8) The local management entity shall assure that a physician is available at all times to provide backup support to include telephone consultation and face‑to‑face evaluation, if necessary.
SECTION 2. This act becomes
effective July 1, 2003, and expires July 1, 2006.October 1, 2007."
CHANGES TO THE STATE PLAN FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES
SECTION 10.28. Independent consultants hired by the Department from funds appropriated in this act for this purpose shall undertake the following tasks:
(1) Assist DHHS with the strategic planning necessary to develop the revised State Plan as required under G.S. 122C‑102. The State Plan shall be coordinated with local and regional crisis service plans by area authorities and county programs.
(2) Study and make recommendations to increase the capacity of DHHS to implement system reform successfully and in a manner that maintains strong management functions by area authorities and county programs at the local level.
(3) Assist the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to work with area authorities and county programs to:
a. Develop and implement five to ten critical performance indicators to be used to hold area authorities and county programs accountable for managing the mental health, developmental disabilities, and substance abuse services system. The performance system indicators shall be implemented no later than six months after the consultant's contract is awarded and in no event later than July 1, 2007.
b. Standardize the utilization management functions and functions related to person‑centered plans.
c. Implement other uniform procedures for the management functions of area authorities and county programs.
(4) Provide technical assistance and oversight to private service providers, area authorities, and county programs to ensure that best practices and new services are being delivered with fidelity to the service definition model.
(5) Provide ongoing and focused technical assistance to area authorities and county programs in the implementation of their administrative and management functions and the establishment and operation of community‑based programs. The Secretary shall include in the State Plan a mechanism for monitoring the Department's success in implementing this duty and the progress of area authorities and county programs in achieving these functions.
(6) Assist the Division with implementing standard forms, contracts, processes, and procedures to be used by all area authorities and county programs with other public and private service providers. These processes and procedures shall include standardized denial codes and a standard policy regarding the coordination of benefits. The independent consultant shall consult with area authorities and county programs regarding the development of these forms, contracts, processes, and procedures. Any document or process developed under this subdivision shall place an obligation upon providers to transmit to area authorities and county programs timely client information and outcome data. The independent consultant shall also recommend language regarding what constitutes a clean claim for purposes of billing. When implementing this subdivision, the independent consultant shall balance the need for area authorities and county programs to exercise discretion in the discharge of their management responsibilities with the need of private service providers for a uniform system of doing business with public entities. The independent consultant shall also (i) identify other areas of standardization that may be implemented without undermining the authority of area authorities and county programs, and (ii) identify and eliminate processes and procedures that are duplicative or result in unnecessary paperwork.
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.(a) The Department of Health and Human Services shall recalculate local management entity (LME) systems management allocations for fiscal year 2006‑2007 to include funds for each LME to implement 24‑hour, seven‑days‑a‑week screening, triage, and referral, and to review, monitor, and comment on all person‑centered plans. The Department shall allocate funds appropriated in this act for this purpose to LMEs to implement the functions described in this section.
SECTION 10.32.(b) The Secretary shall review and revise the LME systems management cost model to provide adequate funds for LMEs to fully implement the functions outlined in G.S 122C‑115.4(b) as enacted in Section 4 of this act. The Secretary shall consult with the Joint Legislative Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services prior to implementing a revised cost model.
For the 2006‑2007 fiscal year and until the revised cost model is implemented, the Department shall maintain the 2005‑2006 level of funding to LMEs for all LME functions except the following:
(1) Up to thirteen million three hundred thirty‑three thousand four hundred eighty‑four dollars ($13,333,481) for utilization review; and
(2) Up to twelve million one hundred fifty‑six thousand forty‑two dollars ($12,156,042) for claims processing.
Any savings of State appropriations realized from the revised cost model shall be reallocated to State‑funded services for mental health, developmental disabilities, and substance abuse services.
Funds withdrawn for LME administrative functions shall be reallocated to other LMEs to be used to provide mental health, developmental disabilities, and substance abuse services. The ten percent (10%) reduction authorized under G.S. 122C‑155(a1), as enacted by this section, is in addition to funding limitations of this subsection.
SECTION 10.32.(c) Effective July 1, 2007, G.S. 122C‑115(a) reads as rewritten:
"§ 122C‑115. Duties of counties; appropriation and allocation of funds by counties and cities.
(a) A county shall provide mental health, developmental disabilities, and substance abuse services through an area authority or through a county program established pursuant to G.S. 122C‑115.1. The catchment area of an area authority or a county program shall contain either a minimum population of at least 200,000 or a minimum of six counties. To the extent this section conflicts with G.S. 153A‑77(a), the provisions of G.S. 153A‑77(a) control."
SECTION 10.32.(d) Effective July 1, 2007, G.S. 122C‑115 is amended by adding a new subsection to read:
"(a1) The Department of Health and Human Services shall reduce by ten percent (10%) annually the administrative funding for area authorities and county programs that do not comply with the catchment area requirements of this section."
SECTION 10.32.(e) Effective July 1, 2007, G.S. 122C‑115.1(a)(3) is repealed.
DISTRIBUTION OF MENTAL HEALTH AND SUBSTANCE ABUSE SERVICES FUNDS
SECTION 10.33A. 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.
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; FUNDS TO SUPPORT POSITIONS IN JULIAN KEITH ADATC
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) The Secretary of Health and Human Services may use funds for the 2006‑2007 fiscal year from the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs to support up to 66 new positions in the Julian F. Keith Alcohol and Drug Abuse Treatment Center.
SECTION 10.33H.(c) Subsections (a) and (c) of this section become 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.
SUBSTANCE ABUSE SERVICES FUNDS FOR TASC
SECTION 10.33J. Of the funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for substance abuse services, the sum of up to three hundred thousand dollars ($300,000) shall be allocated to Treatment Accountability for Safer Communities (TASC). These funds shall be allocated to TASC before funds are allocated to local management entities for mental health services, substance abuse services, and crisis services.
SECTION 10.34.(a) 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 year 2004‑2005
and 2005‑20062006‑2007 for child care services. These
funds shall be allocated to prevent termination of child care services. Funds
appropriated for specific purposes, including market rate adjustments, may also
be allocated by the Department separately from the allocation formula described
in subsection (a) of this section."
SECTION 10.34.(b) Not later than October 1, 2006, the Department shall implement an adjustment to child care market rates, by region, based upon the 2005 Child Care Market Rate Study. Rate adjustments shall be implemented as follows:
(1) For three‑ to five‑star child care center‑based rates, counties in Region 1 shall receive twenty percent (20%) of the recommended rate adjustment as defined in the 2005 Child Care Market Rate Study.
(2) For three‑ to five‑star child care center‑based rates, counties in Regions 2‑5 shall receive thirty‑five percent (35%) of the recommended rate adjustment as defined in the 2005 Child Care Market Rate Study.
(3) For three‑ to five‑star child care home‑based rates, all counties shall receive twenty percent (20%) of the recommended rate adjustment as defined in the 2005 Child Care Market Rate Study.
SECTION 10.35. Section 10.62(e) of S.L. 2005‑276 reads as rewritten:
"SECTION 10.62.(e) A
market rate shall be calculated for child care centers and homes at each rated
license level for each county and for each age group or age category of
enrollees and shall be representative of fees charged to unsubsidized privately
paying parents for each age group of enrollees within the county. The
Division of Child Development shall also calculate a statewide rate and
regional market rates for each rated license level for each age category."
Child Care Funds Matching Requirement
SECTION 10.36.(a) 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 fifteen percent (15%) 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)."
SECTION 10.36.(b) The Department of Health and Human Services shall evaluate the fifteen percent (15%) local matching requirement to determine its effect on local purchasing agencies and whether the matching requirement should be adjusted. The Department shall report its findings and recommendations to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than April 1, 2007.
REQUIRE MINIMUM OF SMART START FUNDS FOR CHILD CARE SUBSIDY
SECTION 10.37. Notwithstanding G.S. 143B‑168.15(g), of the thirteen million five hundred thousand dollars ($13,500,000) 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.
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:
(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) Funds 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.
SECTION 10A.1.(d) Funds transferred pursuant to this section are hereby appropriated.
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 three hundred thirty‑one thousand three hundred thirty‑eight
dollars ($3,331,338) 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 $59,057
Cape Fear Museum $161,007 $161,007
Carolina Raptor Center $112,174 $112,174
Catawba Science Center $133,429 $146,356
Colburn
Gem and Mineral Museum, Inc.Earth Science
Museum, Inc. $74,545 $74,545
Discovery Place $662,865 $662,865
Eastern NC Regional Science Center $50,000 $50,000
Port
Discover: Northeastern North Carolina's $50,000
Center
for Hands‑On Science, Inc.
Fascinate‑U $80,742 $81,072
Granville County Museum Commission,
Inc.–Harris Gallery $56,422 $56,422
Greensboro Children's Museum $135,076 $135,076
The Health Adventure Museum of Pack
Place Education, Arts and
Science Center, Inc. $134,499 $155,611
Highlands Nature Center $79,268 $79,268
Imagination Station $86,034 $86,034
The Iredell Museums, Inc. $61,306
Kidsenses $50,000 $81,282
Museum of Coastal Carolina $74,192 $78,020
The Natural Science Center of
GreensboroGreensboro,
Inc. $186,354 $186,354
North Carolina Museum of Life
and Science $379,826 $379,826
Port Discover: Northeastern North Carolina's
Center for Hands‑On Science, Inc. $50,000 $50,000
Rocky Mount Children's Museum $72,254 $72,254
Schiele Museum of Natural History
and Planetarium, Inc. $229,547 $229,547
Sci Works Science Center and
Environmental Park of Forsyth County $146,499 $146,499
Western North Carolina Nature Center $112,879 $112,879
Wilmington Children's Museum $71,093 $73,886
Total $3,197,762 $3,331,338
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) Each museum that receives funds under this section shall provide to the Department of Environment and Natural Resources and the Fiscal Research Division a copy of its annual audited financial statement within 30 days of issuance of this statement and a copy of its most recent IRS Form 990.
SECTION 11.3.(c) 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.
INCREASE CERTAIN PUBLIC WATER SYSTEMS ANNUAL OPERATING PERMIT FEES/IMPOSE FEES FOR REVIEW OF ENGINEERING PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OR ALTERATION OF PUBLIC WATER SYSTEMS
SECTION 11.7.(a) G.S. 130A‑328 reads as rewritten:
"§
130A‑328. Community Public water system operating permit
and permit fee.
(a) No person shall operate a community or non transient non‑community water system who has not been issued an operating permit by the Department. A community or non transient non‑community water system operating permit shall be valid from January 1 through December 31 of each year unless suspended or revoked by the Department for cause. The Commission shall adopt rules concerning permit issuance and renewal and permit suspension and revocation. The annual fees in subsection (b) shall be prorated on a monthly basis for permits obtained after January 1 of each year.
(b) The following fees are imposed for the issuance or renewal of a permit to operate a community or non transient non‑community water system; the fees are based on the number of persons served by the system:
Number of Persons Served______________________________________________ Fee
100 or fewer $150
More than 100 but
no more than 500 $175
More than 500 but
no more than 3300 $300
More than 3300
but no more than 5000 $450
More than 5000
but no more than 10,000 $550
More than 10,000
but no more than 50,000 $650
More than 50,000 $850
Non Community Water Systems:
Base Fee:
Non transient non‑community $150
Community Water Systems:
Number of Persons Served
50 or fewer $255
More than 50 but no more than 100 $270
More than 100 but no more than 200 $330
More than 200 but no more than 300 $350
More than 300 but no more than 400 $385
More than 400 but no more than 500 $420
More than 500 but no more than 750 $780
More than 750 but no more than 1000 $810
More than 1000 but no more than 2000 $840
More than 2000 but no more than 3000 $870
More than 3000 but no more than 4000 $1350
More than 4000 but no more than 5000 $1460
More than 5000 but no more than 7500 $1925
More than 7500 but no more than 10,000 $2065
More than 10,000 but no more than 25,000 $2600
More than 25,000 but no more than 50,000 $2925
More than 50,000 but no more than 75,000 $4250
More than 75,000 but no more than 100,000 $4675
More than 100,000 but no more than 250,000 $5100
More than 250,000 but no more than 500,000 $5525
More than 500,000 $5950
(c) The following fees are imposed for the review of plans, specifications, and other information submitted to the Department for approval of construction or alteration of a public water system. The fees are based on the type of constructions or alteration proposed:
Distribution system: Fee
Construction of water lines, less than 5000 linear feet $150
Construction of water lines, 5000 linear feet or more $200
Other construction or alteration to a distribution system $75
Ground water system:
Construction of a new ground water system or adding a new well $200
Alteration to an existing ground water system $100
Surface Water system:
Construction of a new surface water treatment facility $250
Alteration to an existing surface water treatment facility $150
Water System Management Plan review $75
Miscellaneous changes or maintenance not covered above $50
(d) The Department may charge an administrative fee of up to one hundred fifty dollars ($150.00) for failure to pay the permit fee by January 31 of each year.
(e) All fees collected under this section shall be applied to the costs of administering and enforcing this Article."
SECTION 11.7.(b) The Department of Environment and Natural Resources may create a schedule for phasing in the new fees added to G.S. 130A‑328, as amended by subsection (a) of this section, over multiple operating permit cycles.
SECTION 11.7.(c) This section becomes effective January 1, 2007.
PART XII. DEPARTMENT OF COMMERCE
SECTION 12.1. Section 13.4 of S.L. 2005‑276, as amended by Section 24 of S.L. 2005-345, 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 in the 2005-2006 2006-2007
fiscal year shall not exceed two million dollars ($2,000,000).
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.
SECTION 13.4.(c) To the extent that federal funding for the operation and support of local Employment Security Commission offices is decreased for the 2006‑2007 fiscal year, there is appropriated from the Employment Security Commission Reserve Fund to the Employment Security Commission of North Carolina funds in a corresponding amount not to exceed one million dollars ($1,000,000) to replace such funds."
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."
EXTEND E‑NC AUTHORITY SUNSET/E‑NC AUTHORITY FUNDS AND REPORTING REQUIREMENTS
SECTION 12.3.(a) Section 4 of S.L. 2003‑425 reads as rewritten:
"SECTION 4. Sections 1
and 2 of this act become effective December 31, 2003, with the e‑NC
Authority hereby designated as the successor entity of the Rural Internet
Access Authority that will dissolve on that date, as provided by Section 5 of
S.L. 2000‑149. The remainder of this act is effective when it becomes
law. The e‑NC Authority created in this act is dissolved effective December
31, 2006. December 31, 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."
SECTION 12.3.(b) Section 13.12 of S.L. 2005‑276 reads as rewritten:
"SECTION 13.12.(a) Of
the funds appropriated in this act to the Rural Economic Development Center,
Inc., the sum of twenty million dollars ($20,000,000) for the 2005‑2006
fiscal year and the sum of twenty million dollars ($20,000,000)nineteen
million five hundred thousand dollars ($19,500,000) for the 2006‑2007
fiscal year shall be allocated as follows:
(1) To continue the North Carolina Infrastructure Program. The purpose of the Program is to provide grants to local governments to construct critical water and wastewater facilities and to provide other infrastructure needs, including technology needs, to sites where these facilities will generate private job‑creating investment. At least fifteen million dollars ($15,000,000) of the funds appropriated in this act for each year of the biennium must be used to provide grants under this Program.
(2) To provide matching grants to local governments in distressed areas and equity investments in public‑private ventures that will productively reuse vacant buildings and properties, with priority given to towns or communities with populations of less than 5,000.
(3) To provide economic development research and demonstration grants.
…
SECTION 13.12.(f) Of the
funds appropriated in this act to the Rural Economic Development Center, Inc.,
and allocated in subsection (a) of this section, the sum of five hundred
thousand dollars ($500,000) for the 2005‑2006 fiscal year and the sum
of five hundred thousand dollars ($500,000) for the 2006‑2007 fiscal year
shall be allocated to the e‑NC Authority.
The e‑NC Authority may contract with other State agencies, The University of North Carolina, the North Carolina Community College System, and nonprofit organizations to assist with program development and the evaluation of program activities.
The e‑NC Authority shall report to the 2006 General Assembly on the following:
(1) The activities necessary to be undertaken in distressed urban areas of the State to enhance the capability of citizens and businesses residing in these areas to access the high‑speed Internet.
(2) An implementation plan for the training of citizens and businesses in distressed urban areas.
(3) The technology and digital literacy training necessary to assist citizens and existing businesses to create new technology‑based enterprises in these communities and to use the Internet to enhance the productivity of their businesses.
The e‑NC Authority shall, by January 31, 2006, and quarterly thereafter, report to the Joint Legislative Commission on Governmental Operations on program development and the evaluation of program activities."
SECTION 12.3.(c) Of the funds appropriated in this act to the Department of Commerce, the sum of five hundred thousand dollars ($500,000) shall be allocated to the e‑NC Authority.
The e‑NC Authority may contract with other State agencies, The University of North Carolina, the North Carolina Community College System, and nonprofit organizations to assist with program development and the evaluation of program activities.
The e‑NC Authority shall report to the 2007 General Assembly on the following:
(1) The activities necessary to be undertaken in distressed urban areas of the State to enhance the capability of citizens and businesses residing in these areas to access high‑speed Internet.
(2) An implementation plan for the training of citizens and businesses in distressed urban areas.
(3) The technology and digital literacy training necessary to assist citizens and existing businesses to create new technology‑based enterprises in these communities and to use the Internet to enhance the productivity of their businesses.
The e‑NC Authority shall, by September 30, 2006, and quarterly thereafter, report to the Joint Legislative Commission on Governmental Operations on program development and the evaluation of program activities.
COUNCIL OF GOVERNMENT FUNDS/ELECTRONIC TRANSFER
SECTION 12.4. Section 13.2(c) of S.L. 2005‑276 reads as rewritten:
ADVANCED VEHICLE RESEARCH CENTER /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 may, subject to subsection (b1) of this section,
transfer in up to four installments the sum of seven million five hundred
thousand dollars ($7,500,000) eleven million two hundred fifty thousand dollars
($11,250,000) 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.(b1) No funds shall be released by the Office of State Budget and Management under subsection (b) of this section until a board of directors of the Center consisting of no fewer than five members representing five different organizations is appointed and operating.
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) The Department shall, in collaboration with the Department of Agriculture and Consumer Services, evaluate the use of economic incentive programs designed specifically for agribusinesses, and shall include its findings in the report. The report shall also include a plan to implement economic incentive programs designed specifically for agribusinesses and the estimated cost of the programs. In determining the estimated cost of the programs, the Department shall consider all known sources of funding, including federal, State, and grant funds.
SECTION 12.7.(c) The Department of Agriculture and Consumer Services, the Rural Economic Development Center, Inc., the University System, and all other State agencies with agribusiness programs shall compile and provide any information requested by the Department for the purpose of 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.
Economic DEVELOPMENT reserve
SECTION 12.8.(a) There is established in the Department of Commerce a reserve to be known as the Economic Development Reserve. Funds from the Reserve shall not be expended or transferred except in accordance with the provisions of this section. 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 Economic Development Reserve for the purpose of awarding grants for site acquisition and economic development projects.
SECTION 12.8.(b) By May 1, 2007, the Department of Commerce shall submit a 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 grant recipient involved; (ii) a description of the project; (iii) the project location; (iv) the rationale for awarding the grant; and (v) the amount of the grant.
SECTION 12.8.(c) G.S. 150B‑1(d) is amended by adding a new subdivision to read:
"(d) Exemptions from Rule Making. – Article 2A of this Chapter does not apply to the following:
…
(14) The Department of Commerce in developing guidelines for the North Carolina Economic Development Reserve."
PART XIII. department of labor
REPEAL FEE FOR MINE SAFETY EDUCATION/TRAINING PROGRAMS
SECTION 13.1. G.S. 74‑24.16(d) is repealed.
PART XIV. JUDICIAL DEPARTMENT
COLLECTION OF WORTHLESS CHECK FUNDS
SECTION 14.1. Notwithstanding the provisions of G.S. 7A‑308(c), the Judicial Department may use any balance remaining in the Collection of Worthless Checks Fund on June 30, 2006, for the purchase or repair of office or information technology equipment during the 2006‑2007 fiscal year. Prior to using any funds under this section, the Judicial Department shall report to the Joint Legislative Commission on Governmental Operations and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety on the equipment to be purchased or repaired and the reasons for the purchases.
SECTION 14.2. The Judicial Department may use up to the sum of one million two hundred fifty thousand dollars ($1,250,000) from funds available to the Department to provide the State match needed in order to receive grant funds. Prior to using funds for this purpose, the Department shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Commission on Governmental Operations on the grants to be matched using these funds.
PROVIDE ADDITIONAL ASSISTANT DISTRICT ATTORNEYS
SECTION 14.3.(a) G.S. 7A‑60(a1) reads as rewritten:
"(a1) The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full‑time assistant district attorneys set forth in the following table:
No. of Full‑Time
Prosecutorial Asst. District
District Counties Attorneys
1 Camden, Chowan, Currituck, 10 11
Dare, Gates, Pasquotank,
Perquimans
2 Beaufort,
Hyde, Martin, 6 7
Tyrrell, Washington
3A Pitt