GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
HOUSE BILL 1473
RATIFIED BILL
AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
The General Assembly of North Carolina enacts:
PART I. INTRODUCTION AND TITLE OF ACT
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 State Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.
SECTION 1.2. This act shall be known as the "Current Operations and Capital Improvements Appropriations Act of 2007."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund 2007‑2008 2008‑2009
EDUCATION
Community Colleges System Office $ 938,106,160 $ 899,643,003
Department of Public Instruction 7,714,429,569 7,708,315,285
University of North Carolina – Board of Governors
Appalachian State University 121,866,775 123,484,299
East Carolina University
Academic Affairs 200,929,741 207,798,168
Health Affairs 48,700,539 48,649,036
Elizabeth City State University 31,770,080 32,587,386
Fayetteville State University 53,131,616 54,059,698
North Carolina Agricultural and
Technical State University 91,017,204 91,671,185
North Carolina Central University 76,599,430 78,129,122
North Carolina School of the Arts 24,650,862 24,042,061
North Carolina State University
Academic Affairs 349,253,626 358,675,869
Agricultural Extension 42,241,968 42,126,187
Agricultural Research 53,406,637 52,144,009
University of North Carolina at Asheville 33,648,196 34,151,586
University of North Carolina at Chapel Hill
Academic Affairs 269,229,699 275,856,577
Health Affairs 188,883,060 194,407,363
Area Health Education Centers 47,818,875 47,818,875
University of North Carolina at Charlotte 161,588,211 167,100,852
University of North Carolina at Greensboro 145,859,443 149,948,462
University of North Carolina at Pembroke 53,241,514 54,967,129
University of North Carolina at Wilmington 94,683,871 97,233,616
Western Carolina University 84,117,070 85,393,621
Winston‑Salem State University 66,379,070 69,552,386
General Administration 42,489,469 42,647,024
University Institutional Programs 132,601,272 111,329,634
Related Educational Programs 149,629,645 149,933,562
North Carolina School of Science and Mathematics 16,859,174 17,065,422
UNC Hospitals at Chapel Hill 45,673,970 45,673,970
Total University of North Carolina –
Board of Governors $ 2,626,271,017 $ 2,656,447,099
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary 70,883,013 62,592,178
Division of Aging 35,943,589 35,745,179
Division of Blind Services/Deaf/HH 11,287,540 11,434,643
Division of Child Development 306,744,018 310,984,207
Division of Education Services 38,794,264 38,855,457
Division of Health Service Regulation 20,148,484 20,656,228
Division of Medical Assistance 2,920,359,272 3,389,993,470
Division of Mental Health 713,081,821 721,639,723
NC Health Choice 59,391,155 59,391,155
Division of Public Health 192,495,942 182,162,710
Division of Social Services 216,917,502 221,227,038
Division of Vocation Rehabilitation 45,054,797 45,518,365
Total Health and Human Services $ 4,631,101,397 $ 5,100,200,353
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 74,381,701 $ 60,699,001
Department of Commerce
Commerce 63,299,155 40,289,341
Commerce State‑Aid 35,345,235 21,361,485
NC Biotechnology Center 15,583,395 15,583,395
Rural Economic Development Center 143,802,607 24,302,607
Department of Environment and Natural Resources 205,154,162 192,815,663
DENR Clean Water Management Trust Fund 100,000,000 100,000,000
Department of Labor 16,594,758 16,594,951
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 1,214,065,645 $ 1,226,627,581
Department of Crime Control and Public Safety 51,501,337 41,489,037
Judicial Department 432,747,865 452,389,917
Judicial Department – Indigent Defense 106,540,251 115,991,348
Department of Justice 94,861,199 92,171,670
Department of Juvenile Justice and
Delinquency Prevention 158,002,069 139,556,104
GENERAL GOVERNMENT
Department of Administration 74,441,729 71,126,817
Office of Administrative Hearings 3,691,458 3,521,735
Department of State Auditor 12,853,026 12,746,479
Office of State Controller 20,710,191 20,727,698
Department of Cultural Resources
Cultural Resources 74,370,782 71,881,424
Roanoke Island Commission 2,020,023 2,020,023
State Board of Elections 6,188,472 6,046,868
General Assembly 54,538,665 55,740,786
Office of the Governor
Office of the Governor 6,262,319 6,300,587
Office of State Budget and Management 5,870,735 5,877,440
OSBM – Reserve for Special Appropriations 6,971,446 5,621,446
Housing Finance Agency 18,608,417 9,608,417
Department of Insurance
Insurance 30,922,133 30,936,704
Insurance – Volunteer Safety
Workers' Compensation 4,500,000 4,500,000
Office of Lieutenant Governor 914,122 915,109
Department of Revenue 83,949,579 85,163,328
Department of Secretary of State 11,476,990 10,743,041
Department of State Treasurer
State Treasurer 9,329,130 9,326,190
State Treasurer – Retirement for Fire and
Rescue Squad Workers 9,458,957 9,458,957
TRANSPORTATION
Department of Transportation 0 0
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Reserve for Compensation Increases 490,324,192 488,655,673
Additional Salary Increase for Teacher Assistants 1,150,240 1,150,240
Additional Step to Teacher Schedule 9,862,065 9,862,065
Additional Step to Judicial Longevity 566,643 566,643
Transfer Public Defenders to Judicial Retirement 573,000 573,000
Salary Adjustment Fund: 2007‑2009 Biennium 23,688,000 23,688,000
Reserve for Teachers' and State Employees'
Retirement Contribution 35,705,000 35,705,000
Reserve for Retirement System Payback 45,000,000 0
Reserve for State Health Plan 110,184,490 122,890,207
Reserve for Eliminated Positions (10,038,466) (10,038,466)
Contingency and Emergency Fund 5,000,000 5,000,000
Information Technology Fund 9,140,000 7,840,000
BEACON HR/Payroll 20,000,000 0
Integrated Tax Administration System Replacement 5,000,000 0
Reserve for Job Development Investment Grants (JDIG) 12,400,000 12,400,000
Debt Service
General Debt Service 608,559,372 659,016,907
Federal Reimbursement 1,616,380 1,616,380
TOTAL CURRENT OPERATIONS –
GENERAL FUND $ 20,427,596,612 $ 20,685,666,538
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) The General Fund availability used in developing the 2007‑2009 biennial budget is shown below:
FY 2007‑2008 FY 2008‑2009
Unappropriated Balance Remaining
from Previous Year $ 0 $ 271,704,098
Projected Reversions FY 2006‑2007 125,000,000 0
Projected Overcollections FY 2006‑2007 1,368,100,000 0
Less Earmarkings of Year End Fund Balance 0
Savings Reserve Account (175,000,000) 0
Repairs and Renovations (145,000,000) 0
Beginning Unreserved Fund Balance $ 1,173,100,000 $ 271,704,098
Revenues Based on Existing Tax Structure $ 18,643,100,000 $ 19,670,200,000
Nontax Revenues
Investment Income 212,000,000 222,200,000
Judicial Fees 172,500,000 176,600,000
Disproportionate Share 100,000,000 100,000,000
Insurance 60,200,000 62,800,000
Other Nontax Revenues 139,300,000 153,400,000
Highway Trust Fund/Use Tax
Reimbursement Transfer 172,500,000 172,500,000
Highway Fund Transfer 18,190,000 17,610,000
Subtotal Nontax Revenues $ 874,690,000 $ 905,110,000
Total General Fund Availability $ 20,690,890,000 $ 20,845,814,098
Adjustments to Availability: 2007 Session
Maintain State Sales & Use Tax Rate at 4.25% 258,400,000 285,900,000
State Takeback of Local Sales Tax 0 184,200,000
State Hold Harmless for Counties (19,300,000) (3,700,000)
Corporate Tax Earmarking Adjustments 44,700,000 0
Earned Income Tax Credit 0 (48,300,000)
IRC Conformity (56,900,000) (49,100,000)
Health & Human Services/
Health Service Regulation Fees 1,705,501 1,642,407
Secretary of State Corporate Annual Report Fees 563,016 563,016
Long‑term Care Insurance Tax Credit (7,000,000) (7,200,000)
Adoption Tax Credit (3,000,000) (3,000,000)
Enhance 529 Plan Deduction (House Bill 1016) (200,000) (200,000)
Privilege Tax on Software Publishers (2,800,000) (4,000,000)
Research & Development Credit Enhancement (400,000) (800,000)
Modify Tax on Property Coverage Contracts (1,500,000) (3,100,000)
Reserve for Manufacturers' and
Farmers Energy Tax Provisions (10,000,000) (20,000,000)
Nonprofit Energy Tax Credit (500,000) (500,000)
Credit for Constructing Renewable Fuels Facilities 0 (2,300,000)
Reserve for Work Opportunity Tax Credit (3,000,000) (3,000,000)
Sales Tax Refund for Aircraft Part Mfgrs. (800,000) (800,000)
Sales Tax Refund – Research Supplies 0 (2,600,000)
Adjust Sales Tax Holiday 0 (600,000)
Sales Tax Exemption for Bakery Thrift Store (100,000) (100,000)
Railroad Incentives (200,000) (300,000)
Firefighter/EMS Income Tax Deduction (1,000,000) (1,000,000)
Adjust Transfer from Insurance Regulatory Fund 80,274 56,274
Adjust Transfer from Treasurer's Office 110,758 98,758
Transfer from Closed Capital Account 3,506,143 0
Judicial Fees 35,586,118 38,821,220
Subtotal Adjustments to Availability:
2007 Session $ 237,951,810 $ 360,681,675
Revised General Fund Availability $ 20,928,841,810 $ 21,206,495,773
Less: General Fund Appropriations 20,658,337,712 20,685,666,538
Unappropriated Balance Remaining $ 270,504,098 $ 520,829,235
SECTION 2.2.(b) Notwithstanding the provisions of G.S. 143‑15.2 and G.S. 143‑15.3A, the State Controller shall transfer one hundred forty‑five million dollars ($145,000,000) from the unreserved fund balance to the Repairs and Renovations Reserve Account on June 30, 2007. This subsection becomes effective June 30, 2007.
SECTION 2.2.(c) Funds transferred under this section to the Repairs and Renovations Reserve Account are appropriated for the 2007‑2008 fiscal year to be used in accordance with G.S. 143C‑4‑3.
SECTION 2.2.(c1) Notwithstanding G.S. 143‑15.2, 143‑15.3, and 143C‑4‑2, the State Controller shall transfer only one hundred seventy‑five million dollars ($175,000,000) from the unreserved fund balance to the Savings Reserve Account on June 30, 2007. This is not an "appropriation made by law", as that phrase is used in Article V, Section 7(1) of the North Carolina Constitution. This subsection becomes effective June 30, 2007.
SECTION 2.2.(d) Notwithstanding the provisions of G.S. 105‑187.9(b)(1), the sum to be transferred under that subdivision for the 2007‑2008 fiscal year is one hundred seventy million dollars ($170,000,000) and for the 2008‑2009 fiscal year is one hundred seventy million dollars ($170,000,000).
SECTION 2.2.(e) Pursuant to G.S. 105‑187.9(b)(2), the sum to be transferred under that subdivision for the 2007‑2008 fiscal year is two million five hundred thousand dollars ($2,500,000) and for the 2008‑2009 fiscal year is two million five hundred thousand dollars ($2,500,000).
SECTION 2.2.(f) The appropriation made in this act to the Clean Water Management Trust Fund in the amount of one hundred million dollars ($100,000,000) is made pursuant to G.S. 113A‑253.1 and is not in addition to the statutory appropriation made in that section.
PART III. CURRENT OPERATIONS/HIGHWAY FUND
CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
SECTION 3.1. Appropriations from the State Highway Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the fiscal biennium ending June 30, 2009, according to the following schedule:
Current Operations – Highway Fund 2007‑2008 2008‑2009
Department of Transportation
Administration $ 84,037,661 $ 83,204,187
Division of Highways
Administration 32,651,442 32,703,136
Construction 165,895,465 150,173,949
Maintenance 905,285,444 909,599,625
Planning and Research 4,700,000 4,700,000
OSHA Program 425,000 425,000
Ferry Operations 31,313,921 31,313,921
State Aid
Municipalities 93,046,035 93,073,949
Public Transportation 73,466,447 73,144,229
Airports 21,860,122 19,407,815
Railroads 21,951,153 20,330,883
Governor's Highway Safety 334,314 335,449
Division of Motor Vehicles 103,676,924 100,568,704
Transfers, Other State Agencies,
And Reserves 293,466,072 292,009,153
TOTAL $1,832,110,000 $1,810,990,000
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. The Highway Fund availability used in developing the 2007‑2009 biennial budget is shown below:
Highway Fund Availability Statement 2007‑2008 2008‑2009
Unappropriated Balance From Previous Year $ 0 $ 0
Beginning Credit Balance 30,000,000 0
Estimated Revenue 1,802,110,000 1,810,990,000
Total Highway Fund Availability $ 1,832,110,000 $ 1,810,990,000
Unappropriated Balance $ 0 $ 0
PART IV. HIGHWAY TRUST FUND APPROPRIATIONS
HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 4.1. Appropriations from the State Highway Trust Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the biennium ending June 30, 2009, according to the following schedule:
Current Operations – Highway Trust Fund 2007‑2008 2008‑2009
Intrastate System $ 539,414,383 $ 544,982,323
Urban Loops 218,116,712 220,368,154
Aid to Municipalities 56,597,151 57,181,357
Secondary Roads 94,266,888 95,790,568
Program Administration 47,341,560 47,782,560
Transfer to General Fund 172,543,306 172,675,038
Grand Total Current Operations
AND EXPANSION $ 1,128,280,000 $ 1,138,780,000
HIGHWAY TRUST FUND AVAILABILITY STATEMENT
SECTION 4.2. The Highway Trust Fund availability used in developing the 2007‑2009 biennial budget is shown below:
Total Highway Trust Fund Availability $ 1,128,280,000 $ 1,138,780,000
PART V. OTHER AVAILABILITY and appropriations
CIVIL PENALTIES AND FORFEITURE FUND AVAILABILITY AND APPROPRIATION
SECTION 5.1.(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 2007‑2008 FY 2008‑2009
Department of Revenue $63,000,000 $63,000,000
Department of Transportation $15,000,000 $15,000,000
Employment Security Commission $3,000,000 $3,000,000
Department of Insurance $1,000,000 $1,000,000
University of North Carolina $3,500,000 $3,500,000
Other Agencies $10,000,000 $10,000,000
Total Funds Available $95,500,000 $95,500,000
SECTION 5.1.(b) Appropriations. – Appropriations are made from the Civil Penalty and Forfeiture Fund for the fiscal biennium ending June 30, 2009, as follows:
FY 2007‑2008 FY 2008‑2009
School Technology Fund $18,000,000 $18,000,000
State Public School Fund $77,500,000 $77,500,000
Total Appropriation $95,500,000 $95,500,000
SECTION 5.2.(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 three hundred fifty million dollars ($350,000,000) for the 2007‑2008 fiscal year.
SECTION 5.2.(b) The appropriations made from the Education Lottery Fund pursuant to G.S. 18C‑164(d) for the 2007‑2008 fiscal year are as follows:
(1) Class Size Reduction $ 90,364,291
(2) Prekindergarten Program 84,635,709
(3) Public School Building Capital Fund 140,000,000
(4) Scholarships for Needy Students 35,000,000
Total Appropriation $ 350,000,000
SECTION 5.2.(c) G.S. 18C‑162 reads as rewritten:
"§ 18C‑162. Allocation of revenues.
(a) To the extent
practicable, the The Commission shall allocate revenues to the
North Carolina State Lottery Fund in the following manner: order to
increase and maximize the available revenues for education purposes, and to the
extent practicable, shall adhere to the following guidelines:
(1) At least fifty percent (50%) of the total annual revenues, as described in this Chapter, shall be returned to the public in the form of prizes.
(2) At least thirty‑five percent (35%) of the total annual revenues, as described in this Chapter, shall be transferred as provided in G.S. 18C‑164.
(3) No more than eight percent (8%) of the total annual revenues, as described in this Chapter, shall be allocated for payment of expenses of the Lottery. Advertising expenses shall not exceed one percent (1%) of the total annual revenues.
(4) No more than seven percent (7%) of the total annual revenues, as described in this Chapter, shall be allocated for compensation paid to lottery game retailers.
(b) To the extent that the expenses of the Commission are less than eight percent (8%) of total annual revenues, the Commission may allocate any surplus funds:
(1) To increase prize payments; or
(2) To the benefit of the public purposes as described in this Chapter.
(c) Unclaimed prize money shall be held separate and apart from the other revenues and allocated as follows:
(1) Fifty percent (50%) to enhance prizes under subdivision (a)(1) of this section.
(2) Fifty percent (50%) to the Education Lottery Fund to be allocated in accordance with G.S. 18C‑164(c)."
SECTION 5.2.(d) This section becomes effective June 30, 2007.
INFORMATION TECHNOLOGY FUND AVAILABILITY AND APPROPRIATION
SECTION 5.3.(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 2007‑2008 FY 2008‑2009
Receipts from Information
Technology Enterprise Fee $9,800,000 $9,800,000
BEACON/Data Integration Funds $5,000,000 $5,000,000
Interest Income $100,000 $100,000
IT Fund Balance June 30 $600,000 $690,000
Appropriation from General Fund $4,140,000 $2,840,000
Total Funds Available $19,640,000 $18,430,000
SECTION 5.3.(b) Appropriations are made from the Information Technology Fund for the 2007‑2009 fiscal biennium as follows:
Office of Information Technology Services FY 2007‑2008 FY 2008‑2009
Information Technology Operations $9,452,835 $8,152,835
Information Technology Projects $4,497,165 $4,497,165
BEACON/Data Integration Funds $5,000,000 $5,000,000
Total $18,950,000 $17,650,000
PART VI. GENERAL PROVISIONS
APPROPRIATION OF CASH BALANCES AND RECEIPTS
SECTION 6.1.(a) Expenditures of cash balances, federal funds, departmental receipts, grants, and gifts from the various General Fund, Special Revenue Fund, Enterprise Fund, Internal Service Fund, and Trust and Agency Fund budget codes are appropriated and authorized for the 2007‑2009 fiscal biennium as follows:
(1) For all budget codes listed in "North Carolina State Budget, Recommended Operating Budget 2007‑2009, Volumes 1 through 6," cash balances and receipts are appropriated up to the amounts specified in Volumes 1 through 6, as adjusted by the General Assembly, for the 2007‑2008 fiscal year and the 2008‑2009 fiscal year. Funds may be expended only for the programs, purposes, objects, and line items specified in Volumes 1 through 6, or otherwise authorized by the General Assembly.
(2) For all budget codes that are not listed in "North Carolina State Budget, Recommended Operating Budget 2007‑2009, Volumes 1 through 6," cash balances and receipts are appropriated for each year of the 2007‑2009 fiscal biennium up to the level of actual expenditures for the 2006‑2007 fiscal year, unless otherwise provided by law. Funds may be expended only for the programs, purposes, objects, and line items authorized for the 2006‑2007 fiscal year.
(3) Notwithstanding subdivisions (1) and (2) of this subsection, any receipts that are required to be used to pay debt service requirements for various outstanding bond issues and certificates of participation are appropriated up to the actual amounts received for the 2007‑2008 fiscal year and the 2008‑2009 fiscal year and shall be used only to pay debt service requirements.
(4) Notwithstanding subdivisions (1) and (2) of this subsection, cash balances and receipts of funds that meet the definition issued by the Governmental Accounting Standards Board of a trust or agency fund are appropriated for and in the amounts required to meet the legal requirements of the trust agreement for the 2007‑2008 fiscal year and the 2008‑2009 fiscal year.
All these cash balances, federal funds, departmental receipts, grants, and gifts shall be expended and reported in accordance with the provisions of the State Budget Act, except as otherwise provided by law and this section.
SECTION 6.1.(b) Receipts collected in a fiscal year in excess of the amounts authorized by this section shall remain unexpended and unencumbered until appropriated by the General Assembly in a subsequent fiscal year, unless the expenditure of overrealized receipts in the fiscal year in which the receipts were collected is authorized by the State Budget Act.
Overrealized receipts are appropriated up to the amounts necessary to implement this subsection.
In addition to the consultation and reporting requirements set out in G.S. 143C‑6‑4, the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter on any overrealized receipts approved for expenditure under this subsection by the Director of the Budget. The report shall include the source of the receipt, the amount overrealized, the amount authorized for expenditure, and the rationale for expenditure.
SECTION 6.1.(c) Notwithstanding subsections (a) and (b) of this section, there is appropriated from the Reserve for Reimbursements to Local Governments and Shared Tax Revenues for each fiscal year an amount equal to the amount of the distributions required by law to be made from that reserve for that fiscal year.
EXPENDITURES OF FUNDS IN RESERVES LIMITED
SECTION 6.2. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
REVISE FREQUENCY OF FEE REPORT
SECTION 6.3. G.S. 143C‑9‑4 reads as rewritten:
"§
143C‑9‑4. Annual Fee Report.Biennial fee report.
The Office of State Budget and
Management shall prepare a report annually biennially on the fees
charged by each State department, bureau, division, board, commission,
institution, and agency during the previous two fiscal year.years.
The report shall include the statutory or regulatory authority for each fee,
the amount of the fee, when the amount of the fee was last changed, the number
of times the fee was collected during the prior fiscal year, and the total
receipts from the fee during the prior fiscal year."
SECTION 6.4. Notwithstanding G.S. 143C‑6‑4(b), the Office of State Budget and Management, in consultation with the Office of the State Controller and the Fiscal Research Division, may adjust the enacted budget by making transfers among purposes or programs for the sole purpose of correctly aligning authorized positions and associated operating costs with the appropriate purposes or programs as defined in G.S. 143C‑1‑1(d)(23). The Office of State Budget and Management shall change the certified budget to reflect these adjustments only after reporting the proposed adjustments to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division. Under no circumstances shall total General Fund expenditures for a State department exceed the amount appropriated to that department from the General Fund for the fiscal year.
CONSULTATION NOT REQUIRED PRIOR TO ESTABLISHING OR INCREASING FEES PURSUANT TO THE STATE BUDGET ACT
SECTION 6.5. 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 this act.
STAFFING ANALYSIS OF STATE AGENCY BUSINESS FUNCTIONS AND REDEPLOYMENT OF RESOURCES FROM HR/PAYROLL MANAGEMENT
SECTION 6.7.(a) The Office of State Budget and Management, in consultation with the Office of State Controller and the Office of State Personnel, shall conduct annual follow‑up analyses of the Human Resources/Payroll Function Mapping Analysis that was completed in fiscal year 2007 by the BEACON staff and the Office of State Budget and Management. This initial analysis was conducted to provide not only a pre‑implementation assessment of State agency Human Resources/Payroll staffing prior to BEACON HR/Payroll implementation but also to provide a basis on which new HR/Payroll roles required by BEACON implementation can be mapped. These follow‑up analyses of State agency HR/Payroll staffing shall be completed by January 1 of each year to assure the staffing levels remain appropriate. The annual staffing analyses shall be conducted throughout the implementation of the BEACON HR/Payroll System and shall continue for a reasonable time after the implementation to assure that the staffing levels are adjusted based on the increased efficiency provided by the implementation.
SECTION 6.7.(b) The Office of State Budget and Management, in consultation with the Office of State Controller, shall conduct a staffing analysis of the business functions of State government to include, but not be limited to, agency fiscal offices, budget offices, and procurement offices to be completed by April 30, 2008. This initial analysis will serve as a pre‑implementation assessment of State agency business functions staffing prior to the proposed implementation of the remaining components of the BEACON ERP System. Follow‑up analyses shall be conducted annually and completed by January 1 of each year to assure the staffing levels remain appropriate. The annual staffing analyses shall be conducted throughout the implementation of future BEACON components and shall continue for a reasonable time after the implementation to assure that the staffing levels are adjusted based on the increased efficiency provided by the implementation.
SECTION 6.7.(c) By April 30, 2008, the Office of State Budget and Management, in consultation with the Office of State Controller, and then by January 1, 2009, and annually thereafter, the Office of State Budget and Management, in consultation with the Office of State Controller and the Office of State Personnel, shall report to the Chairs of the House of Representatives Appropriations Committee, to the Chairs of the Senate Committee on Appropriations/Base Budget, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division on the results of the annual staffing analyses of State government business functions conducted pursuant to subsection (a) of this section and on the implementation of the BEACON HR/Payroll System.
SECTION 6.7.(d) Prior to any staffing changes that result from the staffing analyses conducted pursuant to subsection (b) of this section, the Office of State Budget and Management, in consultation with the Office of State Controller and the Office of State Personnel, shall report to the Chairs of the House of Representatives Appropriations Committee, to the Chairs of the Senate Committee on Appropriations/Base Budget, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division on the annual staffing analyses of State government business functions conducted pursuant to subsection (b) of this section and on the proposed implementation of the remaining components of the BEACON ERP System.
SECTION 6.7.(e) Notwithstanding any other provision of law, the Office of State Budget and Management may evaluate the impact of the BEACON Program on affected agencies and develop a plan for addressing resources affected by the Program. The State Redeployment Plan shall be implemented to the extent possible. When compliance with federal or State law requires, a new position may be created if a current or contracted position is eliminated. The Office of State Budget and Management, in consultation with the Office of the State Controller, shall report to the Joint Legislative Commission on Governmental Operations within 30 days for each employee change made under the State Redeployment Plan and shall include a five‑year fiscal impact incurred by the State when converting any contracted position to a permanent position. This subsection expires June 30, 2008.
SECTION 6.8.(a) The Office of the State Controller, in cooperation with the State Chief Information Officer, shall develop a Strategic Implementation Plan for the integration of databases and the sharing of information among State agencies and programs. This plan shall be developed and implemented under the governance of the BEACON Project Steering Committee and in conjunction with leadership in State agencies and with the support and cooperation of the Office of State Budget and Management. This plan shall include the following:
(1) Definition of requirements for achieving statewide data integration.
(2) An implementation schedule to be reviewed and adjusted by the General Assembly annually based on funding availability.
(3) Priorities for database integration, commencing with the integration of databases that the BEACON Project Steering Committee identifies as most beneficial in terms of maximizing fund availability and realizing early benefits.
(4) Identification of current statewide and agency data integration efforts and a long‑term strategy for integrating those projects into this effort.
(5) Detailed cost information for development and implementation, as well as five years of operations and maintenance costs.
While it is the intent that this initiative provide broad access to information across State government, the plan shall comply with all necessary security measures and restrictions to ensure that access to any specific information held confidential under federal and State law shall be limited to appropriate and authorized persons.
SECTION 6.8.(b) The State Controller shall serve as Chairman of the BEACON Project Steering Committee (Committee). The other members of the Committee shall include the State Chief Information Officer, the State Personnel Director, the Deputy State Budget Director, and the Department of Transportation's Chief Financial Officer.
SECTION 6.8.(c) Of the funds appropriated from the General Fund to the North Carolina Information Technology Fund, the sum of five million dollars ($5,000,000) for the 2007‑2008 fiscal year shall be used for BEACON data integration as provided by subsection (a) of this section. The Office of the State Controller, in coordination with State agencies and with the support of the Office of State Budget and Management, shall identify and make all efforts to secure any federal matching funds or other resources to assist in funding this initiative.
Funds authorized in this section may be used for the following purposes:
(1) To support the cost of a project manager to conduct the activities outlined herein reportable to the Office of the State Controller.
(2) To support two business analysts to provide support to the program manager and agencies in identifying requirements under this program.
(3) To engage a vendor to develop the Strategic Implementation Plan as required herein.
(4) To conduct integration activities as approved by the BEACON Project Steering Committee. The State Chief Information Officer shall utilize current enterprise licensing to implement these integration activities.
SECTION 6.8.(d) The Office of the State Controller, with the assistance of the State Chief Information Officer, shall present the Strategic Implementation Plan outlined by this section to the 2007 Regular Session of the General Assembly when it convenes in 2008 for action as deemed appropriate. This plan shall be completed not later than April 30, 2008.
Prior to the reconvening of the 2007 Regular Session of the General Assembly in 2008, the Office of the State Controller shall provide semiannual reports to the Joint Legislative Oversight Committee for Information Technology. Written reports shall be submitted not later than October 1, 2007, and April 1, 2008, with presentations of the reports at the first session of the Joint Legislative Oversight Committee on Information Technology following the written report submission date. The Joint Legislative Oversight Committee on Information Technology shall then report to the Joint Legislative Commission on Governmental Operations.
SECTION 6.8.(e) Neither the development of the Strategic Information Plan nor the provisions of this section shall place any new or additional requirements upon The University of North Carolina or the North Carolina Community College System.
USE OF COLLECTION ASSISTANCE FEE
SECTION 6.9.(a) G.S. 105‑243.1(e)(4) reads as rewritten:
"(4) To pay for postage
or other delivery charges for correspondence directly and primarily relating to
collecting overdue tax debts, not to exceed three hundred fifty‑three thousand
dollars ($353,000) five hundred thousand dollars ($500,000) a
year."
SECTION 6.9.(b) The General Assembly finds that a computer system that records tax payments and determines when the payments are overdue directly and primarily relates to the collection of overdue tax debts and that the cost of the computer system is subject to the collection assistance fee set forth in G.S. 105‑243.1. The Department of Revenue is authorized to use funds in the 20% Collection Assistance Fee Account, Budget Code 24704‑2474, during the 2007‑2008 fiscal year to replace the Department's current computer system, and these funds are appropriated to the Department for that purpose. The Department shall not use more than fifteen million dollars ($15,000,000) from the Account to replace the Department's current computer system. Funds appropriated to the Department in this subsection remain in the Account until withdrawn for expenditures for a replacement computer system and shall remain in the Account if not expended during the 2007‑2008 fiscal year for the purposes set forth in this subsection.
SECTION 6.9.(c) The Department of Revenue shall contract with private counsel with the pertinent information technology and computer law expertise to review requests for proposals and to negotiate and review contracts associated with the Integrated Tax Administration System. G.S. 114‑2.3 does not apply to this subsection.
OFFICE OF INFORMATION TECHNOLOGY SERVICES BUDGET REVIEW
SECTION 6.11.(a) Notwithstanding G.S. 147‑33.88, the Office of Information Technology Services (ITS) shall develop an annual budget for review and approval by the Office of State Budget and Management in accordance with the schedule prescribed by the Director. The approved ITS budget shall be included in the Governor's budget recommendations to the General Assembly.
SECTION 6.11.(b) The Office of State Budget and Management shall ensure that State agencies have an opportunity to adjust their budgets based on any rate changes proposed by the Office of Information Technology Services.
OFFICE OF INFORMATION TECHNOLOGY SERVICES REVIEW OF STATE IT BUDGET SUBMISSIONS
SECTION 6.12.(a) The State Chief Information Officer (SCIO) shall review each information technology project budget request from the various State departments, agencies, and institutions prior to the formal submission of those requests to the Governor in order to facilitate a coherent and cost‑effective State investment strategy for information technology projects and systems. The SCIO's review shall:
(1) Identify the purpose of the information technology project or system.
(2) Identify whether the project or system would result in any duplication of effort across governmental agencies, including State, local, and federal agencies.
(3) Determine the completeness, timeliness, and accessibility of the data developed and used by the system.
(4) Estimate the cost and actual staffing for the project or system.
(5) Ascertain the organizational location of the system as well as the hardware and software inventories associated with the system or project.
(6) Assess the current and potential benefits that the technology investment would provide to the State.
(7) Identify any opportunities for the State to leverage federal and local support of the information technology system or project.
(8) Consider any other information pertinent to the utility, functionality, and cost‑effectiveness of the project or system.
The SCIO shall submit the detailed analysis of each information technology budget request to the Office of State Budget and Management (OSBM). Based on that analysis, the OSBM may require State departments, agencies, and institutions to coordinate information technology budget requests and projects to increase efficiency and eliminate duplication in the governance, organization, staffing, and functionality of information technology projects and systems across State government.
SECTION 6.12.(b) By February 1, 2008, the Office of State Budget and Management shall report to the General Assembly on its efforts and outcomes relative to increasing the efficiency and cost‑effectiveness of the State's information technology projects and programs as prescribed by this section. This report shall include detailed information on initiatives to eliminate duplication.
SECTION 6.12.(c) This section does not apply to The University of North Carolina System or to the Judicial Branch.
GEOGRAPHIC INFORMATION SYSTEM (GIS) STUDY
SECTION 6.13.(a) The Office of State Budget and Management (OSBM), in consultation with the Center for Geographic Information and Analysis (CGIA), the State Chief Information Officer, and the chair of the Geographic Information Coordinating Council (GICC), shall conduct a study to identify the development and use of Geographical Information Systems (GIS) in North Carolina by State agencies. The study shall identify the purpose of each system; any duplication of effort across agencies, including local governments and federal agencies; the completeness, timeliness, and accessibility of the data developed and used by the systems; the cost and actual staffing for each system; the organizational location of each system; and the hardware and software inventories associated with each system. The study shall also assess the current and potential benefits that GIS investments provide to the State and identify opportunities for the State to leverage federal and local support for North Carolina GIS systems.
SECTION 6.13.(b) OSBM shall make recommendations on the governance, organization, and staffing of GIS in and across State agencies and on a coherent and cost‑effective State investment strategy for GIS that appropriately leverages local and federal support and eliminates duplication of capabilities. The report shall include a recommended strategy for consolidating State GIS initiatives. The OSBM shall make a written report of these findings and recommendations to the General Assembly by April 30, 2008.
SECTION 6.13.(c) This section does not apply to The University of North Carolina or to the Judicial Branch.
E‑COMMERCE LONG‑RANGE STRATEGY REPORT
SECTION 6.14. The Office of the State Controller shall evaluate the opportunities for efficiencies in State government through the use of electronic commerce as it relates to both disbursement and collection of funds, and shall report the results of that evaluation to the 2008 Regular Session of the 2007 General Assembly. The report shall include all of the following:
(1) Input from the entire State government user base, including State agencies, universities, community colleges, local education agencies, and other units of government that may be disbursing or collecting State funds. Input is also to be obtained from the various central agencies involved in the financial affairs of State government and from the Office of Information Technology.
(2) Specific proposals that would, if implemented, expand electronic commerce activity in the State government fiscal environment, and which shall include the establishment of an ongoing function within State government to execute the expansion. The recommendations should address activities that are suitable for statewide contractual arrangements, as well as those suitable for governmental entities to pursue individually. The recommendations should include expected costs and benefits of these implementations; recommendations for funding recurring and nonrecurring costs of the specific proposals; and a business case to support the recommendations.
(3) Proposed legislation that may be considered by the 2008 Regular Session of the 2007 General Assembly to ensure compliance with merchant card industry policies and standards for operations and security.
(4) Proposed legislation that may be considered by the 2008 Regular Session of the 2007 General Assembly that addresses any inconsistencies or conflicts in existing statutes relating to electronic commerce activities.
Periodic updates on this activity may be requested by the Joint Legislative Commission on Governmental Operations. The final report is due no later than April 30, 2008.
UNC DISTINGUISHED PROFESSOR CHALLENGE‑GRANT INITIATIVE/REDUCE BACKLOG FOR DISTINGUISHED PROFESSOR ENDOWMENT TRUST FUND PROFESSORSHIPS
SECTION 6.15.(a) The UNC Distinguished Professor Challenge‑Grant Initiative is established as a reserve fund to be administered by the Board of Governors of The University of North Carolina. Funds in the UNC Distinguished Professor Challenge‑Grant Initiative shall be used to provide State matching funds for a private challenge‑grant initiative and shall be allocated consistent with G.S. 116‑41.15. Funds from the UNC Distinguished Professor Challenge‑Grant Initiative when matched with private funds shall provide the funding required to endow one distinguished professorship at each of the 16 constituent institutions of The University of North Carolina in the 2007‑2008 fiscal year. All professorships endowed through this Initiative shall be in the fields of teacher education, engineering, nursing, or the traditional arts and sciences.
SECTION 6.15.(b) Funds are allocated in the Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets for the purpose of addressing the existing backlog of professorships under the Distinguished Professors Endowment Trust Fund.
ELIMINATION OF VACANT POSITIONS
SECTION 6.17.(a) The Office of State Budget and Management shall eliminate vacant positions across State government that are funded through the General Fund in order to generate a recurring annual savings of ten million thirty‑eight thousand four hundred sixty‑six dollars ($10,038,466) for each year of the 2007‑2009 fiscal biennium, by transferring from the various State departments, agencies, and institutions the salary and benefits‑related funding appropriated for State government positions. There is established in the Office of State Budget and Management a Reserve for Eliminated Positions.
Notwithstanding G.S. 143C‑6‑9, the sum of ten million thirty‑eight thousand four hundred sixty‑six dollars ($10,038,466) shall be credited to the Reserve for Eliminated Positions from the savings associated with the elimination of vacant positions required by this section, effective July 1, 2007.
SECTION 6.17.(b) The provisions of this section do not apply to The University of North Carolina, to the Community Colleges System, or to local school administrative units.
SECTION 6.18.(a) The Office of State Budget and Management shall conduct an analysis of lapsed salary use by all State agencies. The analysis shall include a five-year history of lapsed salaries generated by State departments, institutions, and agencies and the uses of those lapsed salaries. The report should note instances where spending of lapsed salaries was specifically authorized by legislative action. The report shall include recommendations for methods to reduce the use of lapsed salary and the amount of funds generated as lapsed salary by use for each State department, institution, and agency.
SECTION 6.18.(b) The Office of State Budget and Management shall report its findings to the Joint Legislative Commission on Governmental Operations by April 30, 2008.
SECTION 6.19. Notwithstanding G.S. 143C‑6‑4(b)(2), during the 2007‑2009 fiscal biennium, a State agency may, with approval of the Director of the Budget, spend more than was authorized in the certified budget for a purpose or program if the overexpenditure is required to accommodate the redistribution of salary reserve balances within a State department.
CLARIFY THE TERMS AND CONDITIONS OF EMPLOYMENT OF THE DIRECTOR OF A LOCAL MANAGEMENT ENTITY
SECTION 6.20.(a) G.S. 122C‑121 reads as rewritten:
"§ 122C‑121. Area director.
(a) The area director is an
employee of the area board board, shall serve at the pleasure of the
board, and shall be appointed in accordance with G.S. 122C‑117(7).
The area director is the administrative head of the area program. As
used in this subsection, "employee" means an individual and does not
include a corporation, a partnership, a limited liability corporation, or any
other business association.
(a1) The area board shall establish the area director's salary under Article 3 of Chapter 126 of the General Statutes. An area board may request an adjustment to the salary ranges under G.S. 126‑9(b). The request shall include specific information supporting the need for the adjustment, including comparative salary and patient caseload data for other LMEs, and shall also include the specific amount the area board proposes to pay the director. The area board shall not request a salary adjustment that is more than ten percent (10%) above the normal allowable salary range as determined by the State Personnel Commission.
(a2) The area board shall not provide the director with any benefits that are not also provided by the area board to all permanent employees of the area program. The director shall be reimbursed only for allowable employment‑related expenses at the same rate and in the same manner as other employees of the area program.
(b) The area board shall evaluate annually the area director for performance based on criteria established by the Secretary and the area board. In conducting the evaluation, the area board shall consider comments from the board of county commissioners.
(c) The area director is the administrative head of the area program. In addition to the duties under G.S. 122C‑111, the area director shall:
(1) Appoint and supervise
Appoint, supervise, and terminate area program staff.
(2) Administer area authority services.
(3) Develop the budget of the area authority for review by the area board.
(4) Provide information and advice to the board of county commissioners through the county manager.
(5) Act as liaison between the area authority and the Department.
(d) Except when specifically waived by the Secretary, the area director shall meet all the following minimum qualifications:
(1) Masters degree.
(2) Related experience.
(3) Management experience.
(4) Any other qualifications required under G.S. 122C‑120.1."
SECTION 6.20.(b) This section is effective when this act becomes law, and G.S. 122C‑121(a1) and (a2), as enacted in subsection (a) of this section, applies to salary plans submitted and contracts entered into, extended, modified, or renewed on or after that date.
CONTINUATION REVIEW OF CERTAIN FUNDS, PROGRAMS, AND DIVISIONS
SECTION 6.21.(a) No later than February 1, 2008, the Administrative Office of the Courts shall provide a written report to the Appropriations Committees of the Senate and House of Representatives on the following funds, programs, or divisions:
(1) Association of Clerks of Superior Court.
(2) The Conference of District Attorneys.
The report shall include all of the information listed in subsection (g) of this section.
SECTION 6.21.(b) No later than February 1, 2008, the Department of Correction shall provide a written report to the Appropriations Committees of the Senate and House of Representatives on the Criminal Justice Partnership Program. The report shall include all of the information listed in subsection (g) of this section.
SECTION 6.21.(c) No later than February 1, 2008, the Department of Juvenile Justice and Delinquency Prevention shall provide a written report to the Appropriations Committees of the Senate and House of Representatives on the Juvenile Crime Prevention Councils. The report shall include all of the information listed in subsection (g) of this section.
SECTION 6.21.(d) No later than February 1, 2008, the Department of Environment and Natural Resources shall provide a written report to the Appropriations Committees of the Senate and House of Representatives on the Environmental Stewardship Initiative. The report shall include all of the information listed in subsection (g) of this section.
SECTION 6.21.(e) No later than February 1, 2008, the Board of Governors of The University of North Carolina shall provide a written report to the Appropriations Committees of the Senate and House of Representatives on the Center for Nursing. The report shall include all of the information listed in subsection (g) of this section.
SECTION 6.21.(f) No later than February 1, 2008, the Department of Health and Human Services shall provide a written report to the Appropriations Committees of the Senate and House of Representatives on the following funds, programs, or divisions:
(1) Office of Policy and Planning.
(2) Dental Supplies/Division of Public Health.
The report shall include all of the information listed in subsection (g) of this section.
SECTION 6.21.(g) The reports required in this section shall include the following information for each program:
(1) A description of the program, including information on services provided, the recipients of the services, and the resource requirements.
(2) Meaningful measures of program performance and whether the program is meeting these measures.
(3) The rationale for continuing, reducing, or eliminating funding.
(4) The consequences of discontinuing program funding.
(5) Recommendations for improving services.
(6) Recommendations for reducing costs.
(7) The identification of policy issues that should be brought to the attention of the General Assembly.
SECTION 6.21.(h) The Appropriations Committees of the Senate and House of Representatives may review the funds, programs, and divisions listed in this section and shall determine whether to continue, reduce, or eliminate funding for the funds, programs, and divisions, subject to the continuation review program. The Fiscal Research Division may issue instructions to the State departments and agencies affected by this section regarding the expected content and format of the reports required by this section.
Limit Impervious Surfaces for Vehicle Parking
SECTION 6.22.(a) G.S. 143‑214.7 is amended by adding a new subsection to read:
"(d2) Any area designed for use as a vehicle parking area, except for covered vehicle parking areas or multilevel vehicle parking areas, shall not exceed eighty percent (80%) built‑upon area, as defined in S.L. 2006‑246. The remaining area designed for use as a vehicle parking area shall meet:
(1) The design requirements for a permeable pavement system, as determined in guidance documents prepared by the Department or
(2) Other design requirements for stormwater management approved by the Department, including, but not limited to, the use of (i) grass and other pervious surfaces and (ii) bioretention ponds, cisterns, and other water retention devices."
SECTION 6.22.(b) The Environmental Review Commission may study issues related to the use of pervious surfaces for vehicle parking areas, including the costs associated with the use of pervious surfaces, the impact to the environment of stormwater runoff, and the practices of other states with regard to stormwater best management practices. The Commission may report its findings and recommendations, including any legislative proposals, to the 2007 Regular Session of the General Assembly when it reconvenes in 2008.
Of the funds appropriated to the General Assembly, the Legislative Services Commission shall allocate twenty‑five thousand dollars ($25,000) to conduct this study.
SECTION 6.22.(c) Subsection (a) of this section becomes effective October 1, 2008, and applies to any area designed to be used for vehicular parking for which an application for a building permit, a request for a zoning reclassification, or a subdivision plat is filed in the county or city in which the area is located on or after that date. The remainder of this section is effective when this act becomes law.
UNIVERSITY CANCER RESEARCH FUND
SECTION 6.23.(a) G.S. 105‑113.35 reads as rewritten:
"§
105‑113.35. Tax on tobacco products other than cigarettes.cigarettes;
use of proceeds.
(a) Tax. – An excise tax is
levied on tobacco products other than cigarettes at the rate of three
percent (3%)ten percent (10%) of the cost price of the products.
This tax does not apply to the following:
(1) A tobacco product sold outside the State.
(2) A tobacco product sold to the federal government.
(3) A sample tobacco product distributed without charge.
(b) Primary Liability. – The wholesale dealer or retail dealer who first acquires or otherwise handles tobacco products subject to the tax imposed by this section is liable for the tax imposed by this section. A wholesale dealer or retail dealer who brings into this State a tobacco product made outside the State is the first person to handle the tobacco product in this State. A wholesale dealer or retail dealer who is the original consignee of a tobacco product that is made outside the State and is shipped into the State is the first person to handle the tobacco product in this State.
(c) Secondary Liability. – A retail dealer who acquires non‑tax‑paid tobacco products subject to the tax imposed by this section from a wholesale dealer is liable for any tax due on the tobacco products. A retail dealer who is liable for tax under this subsection may not deduct a discount from the amount of tax due when reporting the tax.
(d) Manufacturer's Option. – A manufacturer who is not a retail dealer and who ships tobacco products other than cigarettes to either a wholesale dealer or retail dealer licensed under this Part may apply to the Secretary to be relieved of paying the tax imposed by this section on the tobacco products. Once granted permission, a manufacturer may choose not to pay the tax until otherwise notified by the Secretary. To be relieved of payment of the tax imposed by this section, a manufacturer must comply with the requirements set by the Secretary.
(e) Use. – Of the funds collected pursuant to this section, the Secretary shall deposit an amount equal to three percent (3%) of the cost price of the products to the General Fund, and the Secretary shall remit the remainder of the funds to the University Cancer Research Fund established pursuant to G.S. 116‑29.1."
SECTION 6.23.(b) Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑29.1. University Cancer Research Fund.
(a) Fund. – The University Cancer Research Fund is established as a special revenue fund in the Office of the President of The University of North Carolina. Allocations from the fund shall be made in the discretion of the Cancer Research Fund Committee and shall be used only for the purpose of cancer research under UNC Hospitals, the Lineberger Comprehensive Cancer Center, or both.
(b) The General Assembly finds that it is imperative that the State provide a minimum of fifty million dollars ($50,000,000) each calendar year to the University Cancer Research Fund; therefore, effective July 1 of each calendar year:
(1) Notwithstanding G.S. 143C‑9‑3, of the funds credited to the Tobacco Trust Account, the sum of eight million dollars ($8,000,000) is transferred from the Tobacco Trust Account to the University Cancer Research Fund and appropriated for this purpose.
(2) The funds remitted to the University Cancer Research Fund by the Secretary of Revenue from the tax on tobacco products other than cigarettes pursuant to G.S. 105‑113.41 is appropriated for this purpose.
(3) An amount equal to the difference between (i) fifty million dollars ($50,000,000) and (ii) the amounts appropriated pursuant to subdivisions (1) and (2) of this subsection is appropriated from the General Fund for this purpose.
(c) Cancer Research Fund Committee. – The Cancer Research Fund Committee shall consist of five ex officio members and two appointed members. The five ex officio members shall consist of the following: (i) one member shall be the President of The University of North Carolina, (ii) one member shall be the Director of the Lineberger Comprehensive Cancer Center, (iii) one member shall be the Dean of the School of Medicine at The University of North Carolina, (iv) one member shall be the Dean of the School of Pharmacy at The University of North Carolina, and (v) one member shall be the Dean of the School of Public Health at The University of North Carolina. The remaining two members shall be appointed by a majority vote of the standing members of the Committee and shall be selected from persons holding a leadership position in a nationally prominent cancer program.
If any of the specified positions cease to exist, then the successor position shall be deemed to be substituted in the place of the former one, and the person holding the successor position shall become an ex officio member of the Committee.
(d) Chair. – The chair shall be the President of The University of North Carolina.
(e) Quorum. – A majority of the members shall constitute a quorum for the transaction of business.
(f) Meetings. – The Committee shall meet at least once in each quarter and may hold special meetings at any time and place at the call of the chair or upon the written request of at least a majority of its members."
SECTION 6.23.(c) Notwithstanding G.S. 116‑29.1(b)(3), the amount appropriated from the General Fund to the University Cancer Research Fund for the 2007‑2008 fiscal year is five million six hundred thousand dollars ($5,600,000), and the amount appropriated from the General Fund to the University Cancer Research Fund for the 2008‑2009 fiscal year is fifteen million five hundred thousand dollars ($15,500,000).
SECTION 6.23.(d) Subsection (a) of this section becomes effective October 1, 2007, and applies to products acquired on or after the effective date, and taxes paid on or after the effective date.
A wholesale dealer or retail dealer of tobacco products other than cigarettes who has an inventory of these products on hand on the effective date of the tax increase made by subsection (a) of this section must file a report of the inventory with the Secretary and pay an additional tax on the inventory. The report must be filed within 20 days after the effective date of the tax increase. The amount of the additional tax is the difference between the amount of tax payable at the former tax rate and the increased tax rate.
STATE SUPPORT OF OUR MILITARY PERSONNEL
SECTION 6.24. The General Assembly finds that North Carolina has a rich military heritage and is the site of some of the nation's major military installations, including Camp Lejeune, Fort Bragg, Pope Air Force Base, Seymour Johnson Air Force Base, New River Marine Corps Air Station, United States Coast Guard Air Station, Elizabeth City, and Cherry Point Marine Corps Air Station. The General Assembly further finds that North Carolina is the home to more than 770,000 veterans of our nation's armed forces and about 120,000 active‑duty military personnel, one of the largest active‑duty military populations in our entire country. In appreciation of and gratitude to those North Carolinians, both living and deceased, who have served in our armed forces in service to our country, the General Assembly provides funding for and support of the following initiatives:
(1) Defense and Security Technology Accelerator.
(2) Mental Health Services for Returning Veterans.
(3) The Soldier Institute for Regenerative Medicine.
(4) Military Morale, Welfare, and Recreation Fund.
(5) National Guard Family Assistance Centers.
(6) National Guard Pension Fund.
(7) "More at Four" for children of deployed military personnel.
modify hours of sale for permittees authorized to engage in in‑stand sales pursuant to G.S. 18B‑1009
SECTION 6.25. G.S. 18B‑1006 is amended by adding a new subsection to read:
"(q) The hours for sales and consumption of alcoholic beverages on the premises of a permittee who meets the requirements of G.S. 18B‑1009 shall be one hour earlier than permitted by G.S. 18B‑1004(c)."
PART VII. PUBLIC SCHOOLS
SECTION 7.1.(a) Effective for the 2007‑2008 school year, the Director of the Budget shall transfer from the Reserve for Compensation Increases funds necessary to implement the teacher salary schedules set out in subsection (b) of this section and for longevity in accordance with subsection (d) 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 2007‑2008 fiscal year to certified personnel of the public schools who are classified as teachers. The schedule contains 32 steps with each step corresponding to one year of teaching experience.
2007‑2008 Monthly Salary Schedule
"A" Teachers
Years of Experience "A" Teachers NBPTS Certification
0 $2,975 N/A
1 $3,017 N/A
2 $3,061 N/A
3 $3,217 $3,603
4 $3,357 $3,760
5 $3,491 $3,910
6 $3,620 $4,054
7 $3,724 $4,171
8 $3,772 $4,225
9 $3,821 $4,280
10 $3,871 $4,336
11 $3,920 $4,390
12 $3,971 $4,448
13 $4,022 $4,505
14 $4,075 $4,564
15 $4,129 $4,624
16 $4,184 $4,686
17 $4,239 $4,748
18 $4,298 $4,814
19 $4,356 $4,879
20 $4,414 $4,944
21 $4,476 $5,013
22 $4,537 $5,081
23 $4,603 $5,155
24 $4,667 $5,227
25 $4,732 $5,300
26 $4,798 $5,374
27 $4,866 $5,450
28 $4,937 $5,529
29 $5,008 $5,609
30 $5,106 $5,719
31+ $5,208 $5,833
2007‑2008 Monthly Salary Schedule
"M" Teachers
Years of Experience "M" Teachers NBPTS Certification
0 $3,273 N/A
1 $3,319 N/A
2 $3,367 N/A
3 $3,539 $3,964
4 $3,693 $4,136
5 $3,840 $4,301
6 $3,982 $4,460
7 $4,096 $4,588
8 $4,149 $4,647
9 $4,203 $4,707
10 $4,258 $4,769
11 $4,312 $4,829
12 $4,368 $4,892
13 $4,424 $4,955
14 $4,483 $5,021
15 $4,542 $5,087
16 $4,602 $5,154
17 $4,663 $5,223
18 $4,728 $5,295
19 $4,792 $5,367
20 $4,855 $5,438
21 $4,924 $5,515
22 $4,991 $5,590
23 $5,063 $5,671
24 $5,134 $5,750
25 $5,205 $5,830
26 $5,278 $5,911
27 $5,353 $5,995
28 $5,431 $6,083
29 $5,509 $6,170
30 $5,617 $6,291
31+ $5,729 $6,416
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 master's degree level and audiologists who are certified as audiologists at the master's 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.
SECTION 7.1.(i) Teachers paid on Step 0 of the salary schedule for the 2007‑2008 school year shall receive a one‑time, lump sum sign‑on bonus of two hundred fifty dollars ($250.00), payable at the end of the school year.
SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 7.2.(a) Effective for the 2007‑2008 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 2007‑2008 fiscal year, commencing July 1, 2007, is as follows:
2007‑2008 Principal and Assistant Principal Salary Schedules
Classification
Years of Exp Assistant Prin I Prin II Prin III Prin IV
Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,730 ‑ ‑ ‑ ‑
5 $3,878 ‑ ‑ ‑ ‑
6 $4,022 ‑ ‑ ‑ ‑
7 $4,137 ‑ ‑ ‑ ‑
8 $4,190 $4,190 ‑ ‑ ‑
9 $4,245 $4,245 ‑ ‑ ‑
10 $4,301 $4,301 $4,355 ‑ ‑
11 $4,355 $4,355 $4,412 ‑ ‑
12 $4,412 $4,412 $4,468 $4,528 ‑
13 $4,468 $4,468 $4,528 $4,587 $4,648
14 $4,528 $4,528 $4,587 $4,648 $4,710
15 $4,587 $4,587 $4,648 $4,710 $4,775
16 $4,648 $4,648 $4,710 $4,775 $4,840
17 $4,710 $4,710 $4,775 $4,840 $4,904
18 $4,775 $4,775 $4,840 $4,904 $4,973
19 $4,840 $4,840 $4,904 $4,973 $5,041
20 $4,904 $4,904 $4,973 $5,041 $5,114
21 $4,973 $4,973 $5,041 $5,114 $5,185
22 $5,041 $5,041 $5,114 $5,185 $5,257
23 $5,114 $5,114 $5,185 $5,257 $5,331
24 $5,185 $5,185 $5,257 $5,331 $5,407
25 $5,257 $5,257 $5,331 $5,407 $5,485
26 $5,331 $5,331 $5,407 $5,485 $5,564
27 $5,407 $5,407 $5,485 $5,564 $5,675
28 $5,485 $5,485 $5,564 $5,675 $5,789
29 $5,564 $5,564 $5,675 $5,789 $5,905
30 $5,675 $5,675 $5,789 $5,905 $6,023
31 $5,789 $5,789 $5,905 $6,023 $6,143
32 ‑ $5,905 $6,023 $6,143 $6,266
33 ‑ ‑ $6,143 $6,266 $6,391
34 ‑ ‑ $6,266 $6,391 $6,519
35 ‑ ‑ ‑ $6,519 $6,649
36 ‑ ‑ ‑ $6,649 $6,782
37 ‑ ‑ ‑ ‑ $6,918
2007‑2008 Principal and Assistant Principal Salary Schedules
Classification
Years of Exp Prin V Prin VI Prin VII Prin VIII
(44‑54) (55‑65) (66‑100) (101+)
0‑14 $4,775 ‑ ‑ ‑
15 $4,840 ‑ ‑ ‑
16 $4,904 $4,973 ‑ ‑
17 $4,973 $5,041 $5,185 ‑
18 $5,041 $5,114 $5,257 $5,331
19 $5,114 $5,185 $5,331 $5,407
20 $5,185 $5,257 $5,407 $5,485
21 $5,257 $5,331 $5,485 $5,564
22 $5,331 $5,407 $5,564 $5,675
23 $5,407 $5,485 $5,675 $5,789
24 $5,485 $5,564 $5,789 $5,905
25 $5,564 $5,675 $5,905 $6,023
26 $5,675 $5,789 $6,023 $6,143
27 $5,789 $5,905 $6,143 $6,266
28 $5,905 $6,023 $6,266 $6,391
29 $6,023 $6,143 $6,391 $6,519
30 $6,143 $6,266 $6,519 $6,649
31 $6,266 $6,391 $6,649 $6,782
32 $6,391 $6,519 $6,782 $6,918
33 $6,519 $6,649 $6,918 $7,056
34 $6,649 $6,782 $7,056 $7,197
35 $6,782 $6,918 $7,197 $7,341
36 $6,918 $7,056 $7,341 $7,488
37 $7,056 $7,197 $7,488 $7,638
38 $7,197 $7,341 $7,638 $7,791
39 ‑ $7,488 $7,791 $7,947
40 ‑ $7,638 $7,947 $8,106
41 ‑ ‑ $8,106 $8,268
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 master's 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 master's 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 master's in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.
SECTION 7.2.(i) During the 2007‑2008 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.
SECTION 7.3.(a) The monthly salary ranges that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2007‑2008 fiscal year, beginning July 1, 2007.
School Administrator I $3,217 $6,041
School Administrator II $3,414 $6,407
School Administrator III $3,624 $6,797
School Administrator IV $3,770 $7,068
School Administrator V $3,922 $7,354
School Administrator VI $4,161 $7,799
School Administrator VII $4,328 $8,113
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.
SECTION 7.3.(b) The monthly salary ranges that follow apply to public school superintendents for the 2007‑2008 fiscal year, beginning July 1, 2007.
Superintendent I $4,594 $8,606
Superintendent II $4,877 $9,126
Superintendent III $5,174 $9,682
Superintendent IV $5,491 $10,270
Superintendent V $5,828 $10,896
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 four percent (4%), commencing July 1, 2007. 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 SALARIES
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 four percent (4%) commencing July 1, 2007.
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 2006‑2007 and who continue their employment for fiscal year 2007‑2008 by providing an annual salary increase for employees of four percent (4%).
For part‑time employees, the pay increase shall be pro rata based on the number of hours worked.
SECTION 7.4.(c) The State Board of Education may adopt salary ranges for noncertified personnel to support increases of four percent (4%) for the 2007‑2008 fiscal year.
BONUS FOR CERTIFIED PERSONNEL AT THE TOP OF THEIR SALARY SCHEDULES
SECTION 7.5. Effective July 1, 2007, any permanent personnel employed on July 1, 2007, 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.
USE OF SUPPLEMENTAL FUNDING IN LOW‑WEALTH COUNTIES
SECTION 7.6.(a) Funds for Supplemental Funding. – The General Assembly finds that it is appropriate to provide supplemental funds in low‑wealth counties to allow those counties to enhance the instructional program and student achievement. Therefore, funds are appropriated to State Aid to Local School Administrative Units for the 2007‑2008 fiscal year and the 2008‑2009 fiscal year to be used for supplemental funds for the schools.
SECTION 7.6.(b) Use of Funds for Supplemental Funding. – All funds received pursuant to this section shall be used only: (i) to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, school computer technicians, instructional supplies and equipment, staff development, and textbooks; (ii) for salary supplements for instructional personnel and instructional support personnel; and (iii) to pay an amount not to exceed ten thousand dollars ($10,000) of the plant operation contract cost charged by the Department of Public Instruction for services.
Local boards of education are encouraged to use at least twenty‑five percent (25%) of the funds received pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 and children who are performing at Level I or II on the writing tests in grades 4 and 7. Local boards of education shall report to the State Board of Education on an annual basis on funds used for this purpose, and the State Board shall report this information to the Joint Legislative Education Oversight Committee. These reports shall specify how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools, such as teacher recruitment, closing the achievement gap, improving student accountability, addressing the needs of at‑risk students, and establishing and maintaining safe schools.
SECTION 7.6.(c) Definitions. – As used in this section:
(1) "Anticipated county property tax revenue availability" means the county‑adjusted property tax base multiplied by the effective State average tax rate.
(2) "Anticipated total county revenue availability" means the sum of the:
a. Anticipated county property tax revenue availability,
b. Local sales and use taxes received by the county that are levied under Chapter 1096 of the 1967 Session Laws or under Subchapter VIII of Chapter 105 of the General Statutes,
c. Sales tax hold harmless reimbursement received by the county under G.S. 105‑521, and
d. Fines and forfeitures deposited in the county school fund for the most recent year for which data are available.
(3) "Anticipated total county revenue availability per student" means the anticipated total county revenue availability for the county divided by the average daily membership of the county.
(4) "Anticipated State average revenue availability per student" means the sum of all anticipated total county revenue availability divided by the average daily membership for the State.
(5) "Average daily membership" means average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education. If a county contains only part of a local school administrative unit, the average daily membership of that county includes all students who reside within the county and attend that local school administrative unit.
(6) "County‑adjusted property tax base" shall be computed as follows:
a. Subtract the present‑use value of agricultural land, horticultural land, and forestland in the county, as defined in G.S. 105‑277.2, from the total assessed real property valuation of the county,
b. Adjust the resulting amount by multiplying by a weighted average of the three most recent annual sales assessment ratio studies,
c. Add to the resulting amount the:
1. Present‑use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105‑277.2,
2. Value of property of public service companies, determined in accordance with Article 23 of Chapter 105 of the General Statutes, and
3. Personal property value for the county.
(7) "County‑adjusted property tax base per square mile" means the county‑adjusted property tax base divided by the number of square miles of land area in the county.
(8) "County wealth as a percentage of State average wealth" shall be computed as follows:
a. Compute the percentage that the county per capita income is of the State per capita income and weight the resulting percentage by a factor of five‑tenths,
b. Compute the percentage that the anticipated total county revenue availability per student is of the anticipated State average revenue availability per student and weight the resulting percentage by a factor of four‑tenths,
c. Compute the percentage that the county‑adjusted property tax base per square mile is of the State‑adjusted property tax base per square mile and weight the resulting percentage by a factor of one‑tenth,
d. Add the three weighted percentages to derive the county wealth as a percentage of the State average wealth.
(9) "Effective county tax rate" means the actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.
(10) "Effective State average tax rate" means the average of effective county tax rates for all counties.
(10a) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(11) "Per capita income" means the average for the most recent three years for which data are available of the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis, including any reported modifications for prior years as outlined in the most recent report.
(12) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(13) "State average current expense appropriations per student" means the most recent State total of county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(14) "State average adjusted property tax base per square mile" means the sum of the county‑adjusted property tax bases for all counties divided by the number of square miles of land area in the State.
(14a) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(15) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.6.(d) Eligibility for Funds. – Except as provided in subsection (h) of this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than one hundred percent (100%).
SECTION 7.6.(e) Allocation of Funds. – Except as provided in subsection (g) of this section, the amount received per average daily membership for a county shall be the difference between the State average current expense appropriations per student and the current expense appropriations per student that the county could provide given the county's wealth and an average effort to fund public schools. (To derive the current expense appropriations per student that the county could be able to provide given the county's wealth and an average effort to fund public schools, multiply the county wealth as a percentage of State average wealth by the State average current expense appropriations per student.)
The funds for the local school administrative units located in whole or in part in the county shall be allocated to each local school administrative unit located in whole or in part in the county based on the average daily membership of the county's students in the school units.
If the funds appropriated for supplemental funding are not adequate to fund the formula fully, each local school administrative unit shall receive a pro rata share of the funds appropriated for supplemental funding.
SECTION 7.6.(f) Formula for Distribution of Supplemental Funding Pursuant to This Section Only. – The formula in this section is solely a basis for distribution of supplemental funding for low‑wealth counties and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for low‑wealth counties.
SECTION 7.6.(g) Minimum Effort Required. – Counties that had effective tax rates in the 1996‑1997 fiscal year that were above the State average effective tax rate but that had effective rates below the State average in the 1997‑1998 fiscal year or thereafter shall receive reduced funding under this section. This reduction in funding shall be determined by subtracting the amount that the county would have received pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws from the amount that the county would have received if qualified for full funding and multiplying the difference by ten percent (10%). This method of calculating reduced funding shall apply one time only.
This method of calculating reduced funding shall not apply in cases in which the effective tax rate fell below the statewide average effective tax rate as a result of a reduction in the actual property tax rate. In these cases, the minimum effort required shall be calculated in accordance with Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
If the county documents that it has increased the per student appropriation to the school current expense fund in the current fiscal year, the State Board of Education shall include this additional per pupil appropriation when calculating minimum effort pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
SECTION 7.6.(h) Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2007‑2009 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety‑five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
SECTION 7.6.(i) Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2008, if it determines that counties have supplanted funds.
SECTION 7.6.(j) Department of Revenue Reports. – The Department of Revenue shall provide to the Department of Public Instruction a preliminary report for the current fiscal year of the assessed value of the property tax base for each county prior to March 1 of each year and a final report prior to May 1 of each year. The reports shall include for each county the annual sales assessment ratio and the taxable values of (i) total real property, (ii) the portion of total real property represented by the present‑use value of agricultural land, horticultural land, and forestland as defined in G.S. 105‑277.2, (iii) property of public service companies determined in accordance with Article 23 of Chapter 105 of the General Statutes, and (iv) personal property.
SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
SECTION 7.7.(a) Funds for Small School Systems. – Except as provided in subsections (b) and (g) of this section, the State Board of Education shall allocate funds appropriated for small school system supplemental funding (i) to each county school administrative unit with an average daily membership of fewer than 3,175 students and (ii) to each county school administrative unit with an average daily membership from 3,175 to 4,000 students if the county in which the local school administrative unit is located has a county‑adjusted property tax base per student that is below the State‑adjusted property tax base per student and if the total average daily membership of all local school administrative units located within the county is from 3,175 to 4,000 students. The allocation formula shall:
(1) Round all fractions of positions to the next whole position.
(2) Provide five and one‑half additional regular classroom teachers in counties in which the average daily membership per square mile is greater than four and seven additional regular classroom teachers in counties in which the average daily membership per square mile is four or fewer.
(3) Provide additional program enhancement teachers adequate to offer the standard course of study.
(4) Change the duty‑free period allocation to one teacher assistant per 400 average daily membership.
(5) Provide a base for the consolidated funds allotment of at least seven hundred eighty‑eight thousand seven hundred eighty‑nine dollars ($788,789), excluding textbooks for the 2007‑2008 fiscal year and a base of at least seven hundred eighty‑eight thousand seven hundred eighty‑nine dollars ($788,789) for the 2008‑2009 fiscal year.
(6) Allot vocational education funds for grade 6 as well as for grades 7‑12.
If funds appropriated for each fiscal year for small school system supplemental funding are not adequate to fully fund the program, the State Board of Education shall reduce the amount allocated to each county school administrative unit on a pro rata basis. This formula is solely a basis for distribution of supplemental funding for certain county school administrative units and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for such county school administrative units.
SECTION 7.7.(b) Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2007‑2009 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety‑five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
SECTION 7.7.(c) Phase‑Out Provisions. – If a local school administrative unit becomes ineligible for funding under this formula because of (i) an increase in the population of the county in which the local school administrative unit is located or (ii) an increase in the county‑adjusted property tax base per student of the county in which the local school administrative unit is located, funding for that unit shall be continued for seven years after the unit becomes ineligible.
SECTION 7.7.(d) Definitions. – As used in this section:
(1) "Average daily membership" means within two percent (2%) of the average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual adopted by the State Board of Education.
(2) "County‑adjusted property tax base per student" means the total assessed property valuation for each county, adjusted using a weighted average of the three most recent annual sales assessment ratio studies, divided by the total number of students in average daily membership who reside within the county.
(2a) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(3) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(4) "State‑adjusted property tax base per student" means the sum of all county‑adjusted property tax bases divided by the total number of students in average daily membership who reside within the State.
(4a) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(5) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued during the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.7.(e) Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2008, if it determines that counties have supplanted funds.
SECTION 7.7.(f) Use of Funds. – Local boards of education are encouraged to use at least twenty percent (20%) of the funds they receive pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 and children who are performing at Level I or II on the writing tests in grades 4 and 7. Local boards of education shall report to the State Board of Education on an annual basis on funds used for this purpose, and the State Board shall report this information to the Joint Legislative Education Oversight Committee. These reports shall specify how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools such as teacher recruitment, closing the achievement gap, improving student accountability, addressing the needs of at‑risk students, and establishing and maintaining safe schools.
SECTION 7.7.(g) Of the expansion funds appropriated for small school system supplemental funding in this act, the sum of seven hundred eighty‑four thousand seven hundred three dollars ($784,703) shall be distributed to county school administrative units that have less than 1,300 students and have experienced a decline in average daily membership since the 2001‑2002 school year. These funds shall be used to reduce the ratio of students to teachers in grades K‑5 by one, in grades 6‑8 by two, and in grades 9‑12 by three.
DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING
SECTION 7.8.(a) Funds are appropriated in this act to address the capacity needs of local school administrative units to meet the needs of disadvantaged students. Each local school administrative unit shall use funds allocated to it for disadvantaged student supplemental funding to implement a plan jointly developed by the unit and the LEA Assistance Program team. The plan shall be based upon the needs of students in the unit not achieving grade‑level proficiency. The plan shall detail how these funds shall be used in conjunction with all other supplemental funding allotments such as Low‑Wealth, Small County, At‑Risk Student Services/Alternative Schools, and Improving Student Accountability to provide instructional and other services that meet the educational needs of these students. Prior to the allotment of disadvantaged student supplemental funds, the plan shall be approved by the State Board of Education.
Funds received for disadvantaged student supplemental funding shall be used, consistent with the policies and procedures adopted by the State Board of Education, only to:
(1) Provide instructional positions or instructional support positions and/or professional development;
(2) Provide intensive in‑school and/or after‑school remediation;
(3) Purchase diagnostic software and progress‑monitoring tools; and
(4) Provide funds for teacher bonuses and supplements. The State Board of Education shall set a maximum percentage of the funds that may be used for this purpose.
The State Board of Education may require districts receiving funding under the Disadvantaged Student Supplemental Fund to purchase the Education Value Added Assessment System in order to provide in‑depth analysis of student performance and help identify strategies for improving student achievement. This data shall be used exclusively for instructional and curriculum decisions made in the best interest of children and for professional development for their teachers and administrators.
SECTION 7.8.(b) Funds are appropriated in this act to evaluate the Disadvantaged Student Supplemental Funding Initiatives and Low‑Wealth Initiatives. The State Board of Education shall use these funds to:
(1) Evaluate the strategies implemented by local school administrative units with Disadvantaged Student Supplemental Funds and Low‑Wealth Funds and assess their impact on student performance; and
(2) Evaluate the efficiency and effectiveness of the technical assistance and support provided to local school administrative units by the Department of Public Instruction.
The State Board of Education shall report the results of the evaluation to the Office of State Budget and Management, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by January 15 of each year.
SECTION 7.8.(c) Funds appropriated to a local school administrative unit for disadvantaged student supplemental funding shall be allotted based on: (i) the local school administrative unit'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 1:20.0;
(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 1:19.5;
(3) For counties with wealth less than eighty percent (80%) of the statewide average, a ratio of 1:19.3; 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 2006‑2007.
For the purpose of this subsection, wealth shall be calculated under the low‑wealth supplemental formula.
SECTION 7.8.(d) If a local school administrative unit's wealth increases to a level that adversely affects the unit's DSSF allotment ratio, the DSSF allotment for that unit shall be maintained at the prior year level for one additional fiscal year.
STUDENTS WITH LIMITED ENGLISH PROFICIENCY
SECTION 7.9.(a) The State Board of Education shall develop guidelines for identifying and providing services to students with limited proficiency in the English language.
The State Board shall allocate these funds to local school administrative units and to charter schools under a formula that takes into account the average percentage of students in the units or the charters over the past three years who have limited English proficiency. The State Board shall allocate funds to a unit or a charter school only if (i) average daily membership of the unit or the charter school includes at least 20 students with limited English proficiency or (ii) students with limited English proficiency comprise at least two and one‑half percent (2.5%) of the average daily membership of the unit or charter school. For the portion of the funds that is allocated on the basis of the number of identified students, the maximum number of identified students for whom a unit or charter school receives funds shall not exceed ten and six‑tenths percent (10.6%) of its average daily membership.
Local school administrative units shall use funds allocated to them to pay for classroom teachers, teacher assistants, tutors, textbooks, classroom materials/instructional supplies/equipment, transportation costs, and staff development of teachers for students with limited English proficiency.
A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds.
Students in the head count shall be assessed at least once every three years to determine their level of English proficiency. A student who scores "superior" on the standard English language proficiency assessment instrument used in this State shall not be included in the head count of students with limited English proficiency.
SECTION 7.10. The State Board of Education shall allocate funds for children with disabilities on the basis of three thousand one hundred ninety‑nine dollars and fifty‑seven cents ($3,199.57) per child for a maximum of 171,617 children for the 2007‑2008 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 2007‑2008 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 7.11. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of one thousand forty‑two dollars and fifty‑three cents ($1,042.53) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2007‑2008 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 58,470 children for the 2007‑2008 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.
EXPENDITURE OF FUNDS TO IMPROVE STUDENT ACCOUNTABILITY
The principal of a school receiving these funds, in consultation with the faculty and the site‑based management team, shall implement plans for expending these funds to improve the performance of students.
Local boards of education are encouraged to use federal funds such as Title I Comprehensive School Reform Development Funds and to examine the use of State funds to ensure that every student is performing at or above grade level in reading and mathematics.
These funds shall be allocated to local school administrative units for the 2007‑2008 fiscal year within 30 days of the date this act becomes law.
SECTION 7.13. The State Board of Education may expend up to two hundred thousand dollars ($200,000) each year for the 2007‑2008 and 2008‑2009 fiscal years from unexpended funds for certified employees' salaries to pay expenses related to pending litigation.
REPLACEMENT SCHOOL BUSES FUNDS
(1) The local board of education shall use the funds only to make the first, second, or third year's payment on a financing contract entered into pursuant to G.S. 115C‑528.
(2) The term of a financing contract entered into under this section shall not exceed three years.
(3) The local board of education shall purchase the buses only from vendors selected by the State Board of Education and on terms approved by the State Board of Education.
(4) The Department of Administration, Division of Purchase and Contract, in cooperation with the State Board of Education, shall solicit bids for the direct purchase of school buses and activity buses and shall establish a statewide term contract for use by the State Board of Education. Local boards of education and other agencies shall be eligible to purchase from the statewide term contract. The State Board of Education shall also solicit bids for the financing of school buses.
(5) A bus financed pursuant to this section shall meet all State and federal motor vehicle safety regulations for school buses.
(6) Any other condition the State Board of Education considers appropriate.
DISCREPANCIES BETWEEN ANTICIPATED AND ACTUAL ADM
The allotments reduced pursuant to this subsection shall include only those allotments that may be increased pursuant to the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual.
SECTION 7.16.(a) The State Board of Education may spend up to fifty thousand dollars ($50,000) a year from State Aid to Local School Administrative Units for the 2007‑2008 and 2008‑2009 fiscal years to evaluate charter schools. In particular, the State Board of Education shall consider the extent to which charter schools have accomplished the following six objectives, which are set out in G.S. 115C‑238.29A:
(1) Improve student learning;
(2) Increase learning opportunities for all students, with special emphasis on expanded learning experiences for students who are identified as at risk of academic failure or academically gifted;
(3) Encourage the use of different and innovative teaching methods;
(4) Create new professional opportunities for teachers, including the opportunities to be responsible for the learning program at the school site;
(5) Provide parents and students with expanded choices in the types of educational opportunities that are available within the public school system; and
(6) Hold the schools established under this Part accountable for meeting measurable student achievement results and provide the schools with a method to change from rule‑based to performance‑based accountability systems.
SECTION 7.16.(b) The State Board of Education shall report the results of its evaluation to the Joint Legislative Education Oversight Committee and the Fiscal Research Division.
MENTOR TEACHER FUNDS MAY BE USED FOR FULL‑TIME MENTORS
SECTION 7.17.(a) The State Board of Education shall grant flexibility to a local board of education regarding the use of mentor funds to provide mentoring support, provided the local board submits a detailed plan on the use of the funds to the State Board and the State Board approves that plan. The plan shall include information on how all mentors in the local school administrative unit have been or will be adequately trained to provide mentoring support.
Local boards of education shall use funds allocated for mentor teachers to provide mentoring support to all State‑paid newly certified teachers, second‑year teachers who were assigned mentors during the prior school year, and entry‑level instructional support personnel who have not previously been teachers.
SECTION 7.17.(b) The State Board, after consultation with the Professional Teaching Standards Commission, shall adopt standards for mentor training.
SECTION 7.17.(c) Each local board of education with a plan approved pursuant to subsection (a) of this section shall report to the State Board on the impact of its mentor program on teacher retention. The State Board shall analyze these reports to determine the characteristics of mentor programs that are most effective in retaining teachers and shall report its findings to the Joint Legislative Education Oversight Committee by October 15 of each year of the biennium.
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
(1) Incentive awards in schools that achieve higher than expected improvements may be:
a. Up to one thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Up to five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be:
a. Up to seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Up to three hundred seventy‑five dollars ($375.00) for each teacher assistant.
SECTION 7.18.(b) The State Board of Education may use funds appropriated to the State Public School Fund to implement the consolidated assistance program, as directed in Section 7.6(b) of S.L. 2006‑66. The Board shall report to the Joint Legislative Education Oversight Committee by January 15, 2008, on any restructuring of the program pursuant to this section.
SECTION 7.19.(a) Funds are appropriated in this act for the Learn and Earn high school workforce development program. The purpose of the program is to create rigorous and relevant high school options that provide students with the opportunity and assistance to earn an associate degree or two years of college credit by the conclusion of the year after their senior year in high school. The State Board of Education shall work closely with the Education Cabinet and the New Schools Project in administering the program.
SECTION 7.19.(b) These funds shall be used to establish new high schools in which a local school administrative unit, two‑ and four‑year colleges and universities, and local employers work together to ensure that high school and postsecondary college curricula operate seamlessly and meet the needs of participating employers.
Funds shall not be allotted until Learn and Earn high schools are certified as operational.
SECTION 7.19.(c) During the first year of its operation, a high school established under G.S. 115C‑238.50 shall be allotted a principal regardless of the number of State‑paid teachers assigned to the school or the number of students enrolled in the school. The budget flexibility authorized by G.S. 115C‑105.25 does not apply to these positions.
SECTION 7.19.(d) The State Board of Education, in consultation with the State Board of Community Colleges and The University of North Carolina Board of Governors, shall conduct an annual evaluation of this program. The evaluation shall include measures as identified in G.S. 115C‑238.55. It shall also include: (i) an accounting of how funds and personnel resources were utilized and their impact on student achievement, retention, and employability; (ii) recommended statutory and policy changes; and (iii) recommendations for improvement of the program. The State Board of Education shall report the results of this evaluation to the Office of State Budget and Management, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by January 15 of each fiscal year.
SECTION 7.19.(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 7.19.(f) Textbooks required for college courses in which Learn and Earn students are enrolled may be purchased with these funds.
SECTION 7.19.(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 7.19.(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 7.19.(i) Of the funds appropriated to the State Public School Fund for the 2007‑2008 fiscal year, the State Board of Education may use up to eight hundred fifty thousand dollars ($850,000) to establish additional Learn and Earn high schools that become certified as operational.
NORTH CAROLINA VIRTUAL PUBLIC SCHOOL
SECTION 7.20.(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 7.20.(b) The Director of NCVPS shall continue to 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 North Carolina Virtual Public School program, eliminating course duplication.
SECTION 7.20.(c) Subsequent to course consolidation, the Director shall 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 7.20.(d) The State Board of Education shall implement an allotment formula developed pursuant to Section 7.16(d) of S.L. 2006‑66, for funding e‑learning, effective in the 2008‑2009 fiscal year. NCVPS shall be available at no cost to all students in North Carolina who are enrolled in North Carolina's public schools, Department of Defense schools, and schools operated by the Bureau of Indian Affairs. The Department of Public Instruction shall communicate to local school administrative units all applicable guidelines regarding the enrollment of nonpublic school students in these courses.
SECTION 7.20.(f) The State Board of Education may convert the 22 three‑month positions that were authorized for NCVPS in S.L. 2006‑66 to five full‑time positions if the Board determines that it is appropriate to do so.
SMALL RESTRUCTURED HIGH SCHOOLS
SECTION 7.21. The State Board of Education shall report to the Office of State Budget and Management, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee no later than January 15 of each year on the results of its evaluation of the small, restructured high school program. The evaluation shall include measures as identified in G.S. 115C‑238.55. It shall also include: (i) an accounting of how funds and personnel resources were utilized and their impact on student achievement, retention, and employability; and (ii) recommendations for improvement of the program.
SECTION 7.22. Notwithstanding G.S. 143C‑6‑4, the State Board of Education 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 NC WISE to create a maximum of 10 positions and incur expenditures necessary to maintain and administer the NC WISE system within the Department of Public Instruction.
SECTION 7.23.(a) Funds are appropriated in this act to support the selection and hiring of new literacy coaches for middle schools or other public schools with an eighth grade class. No more than one literacy coach shall be placed in each such school. The State Board of Education, in consultation with the North Carolina Teacher Academy, shall develop a site selection process including formal criteria. The site must receive formal approval by the State Board of Education to receive funds for this purpose. To be selected schools must:
(1) Contain an eighth grade class, and
(2) Ensure that literacy coaches will have no administrative responsibilities in the schools in which they are placed.
SECTION 7.23.(b) National Board for Professional Teaching Standards (NBPTS) certified teachers serving in these positions shall be exempt from the requirements in G.S. 115C‑296.2(b)(2)d. and shall remain on the NBPTS teacher salary schedule.
MORE AT FOUR PROGRAM AND OFFICE OF SCHOOL READINESS
SECTION 7.24.(a) The Department of Public Instruction 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 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. 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 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. 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 shall consider the reallocation of existing funds from State and local programs that provide prekindergarten‑related care and services.
SECTION 7.24.(b) The Department of Public Instruction shall implement a plan to expand "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 "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 access to training and workshops for "More at Four" programs. Whenever expansion slots are available, these classrooms shall have first priority to receive them.
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 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 7.24.(c) The Department of Public Instruction shall submit a report by February 1, 2008, to the Joint Legislative Commission on Governmental Operations, the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Education, the House of Representatives Appropriations Subcommittee on 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) A comprehensive cost analysis of the program, including the cost per child served by the program.
(6) The status of the NC Prekindergarten initiatives as outlined in this section.
SECTION 7.24.(d) For the 2007‑2008 and the 2008‑2009 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. 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. Furthermore, any age‑eligible child of (i) an active duty member of the armed forces of the United States, including the North Carolina National Guard, State military forces, or a reserve component of the armed forces, who is ordered to active duty by the proper authority within the last 18 months or expected to be ordered within the next 18 months, or (ii) a member of the armed forces of the United States, including the North Carolina National Guard, State military forces, or a reserve component of the armed forces, who was injured or killed while serving on active duty, shall be eligible for the program.
SECTION 7.24.(e) The "More at Four" program funding shall not supplant any funding for classrooms serving four‑year‑olds as of the 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 7.24.(f) If a county is unable to increase "More at Four" slots because of a documented lack of available resources necessary to provide the required local contribution for the additional slots allocated to the county for the 2007‑2008 fiscal year, the contract agency for that county may appeal to the Office of School Readiness for an exception to the required local amount for those additional slots. The Office of School Readiness may grant an exception and allot funds to pay up to ninety percent (90%) of the full cost of the additional slots for that county if it finds that (i) there is in fact a documented lack of available resources in the county and (ii) granting the exception will not reduce access statewide to "More at Four" slots.
ADMINISTRATIVE FUNDING FOR TEACHING FELLOWS PROGRAM
SECTION 7.25.(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.
With the prior approval of the
General Assembly in the Current Operations Appropriations Act, the revolving
fund may also be used by the The Public School Forum, as
administrator for the Teaching Fellows Program, for Program, may use
up to eight hundred ten thousand dollars ($810,000) annually from the fund balance
for costs associated with administration of the Teaching Fellows
Program."
SECTION 7.25.(b) The funding provided for in this section shall be used to meet current administrative expenses of the Program and continue minority recruitment initiatives.
SECTION 7.25.(c) The Teaching Fellows Program shall report to the Joint Legislative Education Oversight Committee by March 15, 2008, on:
(1) Actual expenditures for the 2006‑2007 fiscal year and budgeted expenditures for the 2007‑2008 fiscal year for administration of the Program and
(2) Initiatives to recruit minorities to the Program.
SECTION 7.25.(d) The General Assembly urges the North Carolina Teaching Fellows Commission to use funds available in the revolving fund to establish additional teaching fellows scholarships.
NO COST SUMMER SCHOOL OR OTHER REMEDIATION ACTIVITIES
SECTION 7.26.(a) G.S. 115C‑105.41 prohibits charging tuition or fees to Students at Risk for Academic Failure. Effective July 1, 2007, local school administrative units shall formally communicate to at‑risk students and their parents or guardians that there will be no charge for participation in intervention activities/practices offered by the local school administrative units to at‑risk students, or for transportation necessary for participation in the intervention activities.
SECTION 7.26.(b) Effective July 1, 2007, local school administrative units shall formally communicate to students and their parents or guardians that tuition and fees will not be charged for summer school courses that are required for remediation or courses that are necessary for the student to meet graduation requirements.
SECTION 7.27.(a) Funds are appropriated in this act for the Learn and Earn Online program. This program will allow high school students to enroll in college courses to qualify for college credit. Online courses will be made available to students through The University of North Carolina and the North Carolina Community College System.
SECTION 7.27.(b) Funds shall be used for course tuition and only those technology and course fees and textbooks required for course participation. Funds shall also support a liaison position to be housed at the Department of Public Instruction to coordinate with The University of North Carolina and the North Carolina Community College System, and to communicate course availability and related information to high school administrators, teachers, and counselors.
SECTION 7.27.(c) The State Board of Education shall determine the allocation of Learn and Earn Online course offerings across the State.
SECTION 7.27.(d) The State Board of Education shall allot funds for tuition, fees, and textbooks on the basis of, and after verification of, the credit hour enrollment of high school students in Learn and Earn Online courses. Community college student enrollments in Learn and Earn Online shall not be considered as a regular budget full‑time equivalent (FTE) in the curriculum enrollment formula, but shall be accounted for separately and funds shall be allotted as a special allotment.
SECTION 7.27.(e) The University of North Carolina program shall report to The University of North Carolina Board of Governors, and the North Carolina Community College program shall report to the North Carolina Community College Board of Trustees. The Department of Public Instruction shall report to the State Board of Education.
SECTION 7.27.(f) Both The University of North Carolina and the North Carolina Community College System shall provide oversight and coordination, including coordination with the Department of Public Instruction and with the North Carolina Virtual Public School (NCVPS) to avoid course duplication.
SECTION 7.27.(g) Course quality and rigor standards shall be established, and each program shall conduct course evaluations to ensure that the online courses made available to students meet the established standards.
SECTION 7.27.(h) The State Board of Education, The University of North Carolina, and the North Carolina Community College System shall report to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division no later than April 15, 2008, on the implementation of the program for the 2007‑2008 school year and the proposed operating plan for the 2008‑2009 school year. The report shall include the number of students enrolled in courses under the Learn and Earn Online program and the number of students who completed courses during the fall semester of the 2007‑2008 school year.
SECTION 7.27.(i) Local school administrative units may purchase textbooks for Learn and Earn Online courses through the Department of Public Instruction's textbook warehouse in the same manner as textbooks that have been adopted for public school students by the State Board of Education.
SECTION 7.27.(j) Chapter 115D of the General Statutes is amended by adding a new section to read:
"§ 115D‑1.2. Learn and Earn Online program.
(a) Notwithstanding 115D‑1, a public school student enrolled in grades 9, 10, 11, or 12 and participating in the Learn and Earn Online program shall be permitted to enroll in online courses through a community college for college credit. Students participating in the Learn and Earn Online program may enroll in Learn and Earn Online courses regardless of the college service areas in which they reside.
(b) The State Board of Community Colleges, in consultation with the Department of Public Instruction, shall adopt rules to implement this section beginning with the 2007‑2008 school year."
SCHOOL CONNECTIVITY INITIATIVE
SECTION 7.28.(a) Funds are appropriated in this act to support the enhancement of the technology infrastructure for public schools. These funds shall be used for broadband access, equipment, and support services that create, improve, and sustain equity of access for instructional opportunities for public school students and educators.
SECTION 7.28.(b) As recommended in the Joint Report on Information Technology, February 2007, the State Board of Education shall contract with an entity that has the capacity of serving as the administrator of the School Connectivity Initiative and has demonstrated success in providing network services to education institutions within the State. The funds appropriated in this act shall be used to implement a plan approved by the State Board of Education to enhance the technology infrastructure for public schools that supports teaching and learning in the classrooms. The plan shall include the following components:
(1) A business plan with time lines, clearly defined outcomes, and an operational model including a governance structure, personnel, e‑Rate reimbursement, support services to local school administrative units and schools, and a budget;
(2) Assurances for a fair and open bidding and contracting process;
(3) Technology assessment site survey template;
(4) Documentation of technology assessments;
(5) Documentation of how the technology will be used to enhance teaching and learning;
(6) Documentation of how existing State‑invested funds for technology are maximized to implement the School Connectivity Initiative; and
(7) The number, location, and schedule of sites to be served in 2007‑2008 and in 2008‑2009.
(8) Assurances that local school administrative units will upgrade internal networks in schools, provide technology tools, and support for teachers and students to use technology to improve teaching and learning.
SECTION 7.28.(c) Funds currently used for the services covered by these new funds shall not be supplanted by this additional funding and shall be used to support instructional technologies and local infrastructure in schools in support of acquisition and delivery of instructional technology resources to the classroom. Any refunds received for services paid with these technology funds shall return to the originating technology fund.
SECTION 7.28.(d) The State Board of Education shall report January 15, 2008, on its progress towards achieving the connectivity initiative and annually thereafter to the Joint Legislative Oversight Committee on Information Technology, the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, the State Information Technology Officer, and the Fiscal Research Division.
SECTION 7.28.(e) As recommended in the E‑Learning Report, February 2006, the Education Cabinet shall develop a plan to:
(1) Coordinate E‑learning activities across the public and private universities and colleges, the community colleges, and the public schools;
(2) Establish a clear purpose and goals for the NCVirtual based on stakeholder needs and requirements;
(3) Develop a strategic plan with measurable goals with reports provided to the Education Cabinet;
(4) Develop, track, and report regularly to the Education Cabinet on appropriate accountability measures for those goals;
(5) Develop and manage an E‑learning portal for the NCVirtual; and
(6) Use State‑invested funds for E‑learning to eliminate duplication of service.
SECTION 7.28.(f) Up to three hundred thousand dollars ($300,000) may be transferred to the Office of the Governor to establish NCVirtual (NCV) within the Education Cabinet. These funds may be used for services to coordinate E‑learning activities across all State educational agencies.
SECTION 7.28.(g) The Education Cabinet shall report on its progress towards developing the plan on January 1, 2008, and annually thereafter to the Joint Legislative Oversight Committee on Information Technology, the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, the State Information Technology Officer, and the Fiscal Research Division.
SECTION 7.28.(h) The State Board of Education may use up to one million dollars ($1,000,000) to establish up to eight regional positions or contract for services regionally to assist local school administrative units in implementing the Initiative. Specifically, these positions and/or contractors will assist with assessment of needs, upgrading, and planning for management of resources and ongoing maintenance. The report required under subsection (d) of this section shall include a description of each position, its salary or contract amount, and its duties.
REORGANIZATION OF THE DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.29.(a) Notwithstanding G.S. 143C‑6‑4, the Department of Public Instruction may reorganize in accordance with the plan adopted by the State Board of Education. The Department shall report to the Joint Legislative Commission on Governmental Operations on the reorganization.
SECTION 7.29.(b) This section expires June 30, 2008.
STUDY OF PUBLIC SCHOOL FUNDING FORMULAS
SECTION 7.31.(a) There is created the Joint Legislative Study Committee on Public School Funding Formulas. The Committee shall consist of six members of the House of Representatives appointed by the Speaker of the House of Representatives and six members of the Senate appointed by the President Pro Tempore of the Senate. The Speaker of the House of Representatives shall appoint a cochair, and the President Pro Tempore of the Senate shall appoint a cochair for the Committee.
The Committee, while in the discharge of its official duties, may exercise all powers provided for under G.S. 120‑19 and G.S. 120‑19.1 through G.S. 120‑19.4. The Committee may contract for professional, clerical, or consultant services as provided by G.S. 120‑32.02.
Subject to the approval of the Legislative Services Commission, the Committee may meet in the Legislative Building or the Legislative Office Building. The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Committee in its work. The House of Representatives' and the Senate's Supervisors of Clerks shall assign clerical support staff to the Committee, and the expenses relating to the clerical employees shall be borne by the Committee.
SECTION 7.31.(b) The Committee shall perform an extensive study of the following public school funding formulas:
(1) Children with Disabilities;
(2) Limited English Proficiency;
(3) At‑Risk Student Services/Alternative Schools;
(4) Improving Student Accountability;
(5) Disadvantaged Students Supplemental;
(6) Low‑Wealth Counties Supplemental Funding;
(7) Small County Supplemental Funding;
(8) Transportation of Pupils; and
(9) Academically or Intellectually Gifted.
SECTION 7.31.(c) The Committee shall also study the State Board of Education's model for projecting average daily membership and focus particularly on how well the model projects average daily membership in rapidly growing local school administrative units with a highly mobile population.
SECTION 7.31.(d) The Committee shall submit a report of its findings and recommendations, including any legislative recommendations, to the 2008 Regular Session of the 2007 General Assembly. The Committee shall terminate upon filing its report.
SECTION 7.32.(a) Findings. – The General Assembly finds that:
(1) North Carolina's schools recorded 22,180 dropout events in grades 9‑12 for 2005‑2006, a nine and nine‑tenths percent (9.9%) increase from the count reported in 2004‑2005. It is the highest count of dropouts since 1999‑2000.
(2) A disproportionate share of the increase in dropout rates occurred in large local school administrative units.
(3) Black males accounted for a disproportionate amount of the increase in dropout count, and the dropout rate for black males increased to seven and one‑hundredths percent (7.01%), an eight and four‑tenths percent (8.4%) increase over the 2004‑2005 rate.
(4) Students drop out of school for a variety of reasons, including academic issues, family and other personal reasons, discipline issues, drug abuse, the need to work, school size, and school climate.
(5) Students who drop out of school without graduating are more likely to be unemployed, receive public assistance, and have a higher incarceration rate than those who graduate.
(6) In order for our citizens and State to thrive in a global, knowledge‑based economy, it is imperative that more of our students graduate from high school with the knowledge and skills needed for postsecondary education or high‑skilled employment.
(7) Differing local needs and local resources necessitate the development of locally generated programs and initiatives that target dropouts and high school retention.
SECTION 7.32.(b) Purpose. – Recognizing that having an unacceptable dropout rate is not a new development in North Carolina, or in the rest of the country, and that over the years there have been, and continue to be, many programs and initiatives that have strived to address this issue, the purpose of this section is to focus attention and resources on innovative programs and initiatives that succeed in keeping students in school when other conflicting factors are pushing them to drop out before they are prepared to further their postsecondary education or enter the workforce.
SECTION 7.32.(c) Committee. – There is established the Committee on Dropout Prevention. The Committee shall be located administratively in the Department of Public Instruction but shall exercise its powers and duties independently of the Department of Public Instruction. The Department of Public Instruction shall provide for the administrative costs of the Committee and shall provide staff to the Committee.
The Committee shall determine which local school administrative units, schools, agencies, and nonprofits shall receive dropout prevention grants under subsection (d) of this section, the amount of each grant, and eligible uses of the grant funding. The Committee shall consist of the following 15 members:
(1) The Governor shall appoint five members, of whom one is a superintendent of schools, one is a representative of a nonprofit, and one is a school social worker;
(2) The President Pro Tempore of the Senate shall appoint five members, of whom one is a principal, one is a representative of a school of education, and one is a school counselor; and
(3) The Speaker of the House of Representatives shall appoint five members, of whom one is a teacher, one is a member of the business community, and one is a representative of the juvenile justice system.
The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Committee. The members of the Committee shall assure they are in compliance with laws and rules governing conflicts of interest.
SECTION 7.32.(d) Dropout Prevention Grants. – The following criteria apply to dropout prevention grants approved by the Committee established under subsection (c) of this section.
(1) Grants shall be issued in varying amounts up to a maximum of one hundred fifty thousand dollars ($150,000).
(2) These grants shall be provided to innovative programs and initiatives that target students at risk of dropping out of school and that demonstrate the potential to (i) be developed into effective, sustainable, and coordinated dropout prevention and reentry programs in middle schools and high schools and (ii) serve as effective models for other programs.
(3) Priority shall be given to new programs and initiatives or to those that have begun within the last five school years.
(4) Grants shall be distributed geographically throughout the State.
(5) Grants may be made to local school administrative units, schools, local agencies, or nonprofit organizations.
(6) Grants shall be to programs and initiatives that hold all students to high academic and personal standards.
(7) Grant applications shall state (i) how grant funds will be used, (ii) what, if any, other resources will be used in conjunction with the grant funds, (iii) how the program or initiative will be coordinated to enhance the effectiveness of existing programs, initiatives, or services in the community, and (iv) a process for evaluating the success of the program or initiative.
(8) Programs and initiatives that receive grants under this subsection shall be based on best practices for preventing students from dropping out of school or for increasing the high school completion rate for those students who already have dropped out of school.
(9) Priority for grants shall be given to proposals that demonstrate input from the local community and coordination with other available programs or resources.
(10) Grantees shall assure their compliance with applicable laws and rules regulating conflicts of interest.
(12) Grants shall be made no later than November 1, 2007.
SECTION 7.32.(e) Report. – The Committee shall report to the Joint Legislative Commission on Dropout Prevention and High School Graduation created in subsection (f) of this section by December 1, 2007, on the grants awarded under subsection (d) of this section, after which time the Committee shall terminate.
SECTION 7.32.(f) Joint Legislative Commission on Dropout Prevention and High School Graduation. –
(1) There is created the Joint Legislative Commission on Dropout Prevention and High School Graduation (Commission) to be composed of 16 members, eight appointed by the President Pro Tempore of the Senate and eight appointed by the Speaker of the House of Representatives. The President Pro Tempore and the Speaker shall each designate a cochair from their appointees. Vacancies shall be filled in the same manner as the original appointments were made.
(2) The cochairs shall jointly call the first meeting of the Commission. A quorum of the Commission is a majority of its members.
(3) The Commission shall:
a. Evaluate initiatives and programs designed to reduce the dropout rate and increase the number of students who graduate from high school prepared to further their postsecondary education or enter the workforce.
b. Review the research on factors related to students' success in school.
c. Evaluate the grants awarded under subsection (d) of this section and recommend whether any of the programs and initiatives that received one of these grants has potential for success and should be expanded or replicated.
d. Study the emergence of major middle school and high school reform efforts, including Learn and Earn Programs, the New Schools Initiative, and 21st Century Schools, and the impact they may have on the dropout rate.
e. Examine strategies, programs, and support services that should be provided if the compulsory school attendance age is raised to enable students to graduate from high school and time lines for implementing those strategies, programs, and support services.
f. Following a review of the courses required for graduation and the current system of awarding credit for those courses, determine whether changes should be made that better recognize the different learning rates and other needs of students.
g. Determine which interventions and other strategies, such as accelerated learning, tutoring, mentoring, or small class sizes, when employed as a substitute to grade retention or as a subsequent measure to grade retention, are the most effective at enabling these students to remain in school and graduate.
h. Study any other issue that the Commission considers relevant and appropriate.
(4) The Legislative Services Commission, through the Legislative Services Officer, shall assign professional and clerical staff to assist in the work of the Joint Legislative Commission on Dropout Prevention and High School Graduation. The expenses of employment of the clerical staff shall be borne by the Joint Legislative Commission on Dropout Prevention and High School Graduation.
(5) The Commission may meet at various locations around the State in order to promote greater public participation in its deliberations. The Legislative Services Commission, through the Legislative Services Officer, shall grant to the Joint Legislative Commission on Dropout Prevention and High School Graduation adequate meeting space in the State Legislative Building or the Legislative Office Building.
(6) Members of the Commission shall be paid per diem, subsistence, and travel allowances as follows:
a. Members who are also members of the General Assembly, at the rate established in G.S. 120‑3.1;
b. Members who are officials or employees of the State or local government agencies, at the rate established in G.S. 138‑6; and
c. All other members, at the rate established in G.S. 138‑5.
(7) The Commission, while in the discharge of its official duties, may exercise all powers provided for under G.S. 120‑19 and Article 5A of Chapter 120 of the General Statutes. The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120‑32.02.
(8) The Commission may submit an interim report, including any recommendations and proposed legislation, to the Joint Legislative Education Oversight Committee and the General Assembly by May 1, 2008, and shall submit a final written report of its findings and recommendations on or before the convening of the 2009 Session of the General Assembly. All reports shall be filed with the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Legislative Librarian. Upon filing its final report, the Commission shall terminate.
SECTION 7.34.(a) The State Board of Education may develop a policy for a two‑year phaseout of the special supplementary funding currently provided to the two remaining high priority elementary schools and may use funds in the ADM Contingency Reserve to support any additional cost of the two‑year phaseout.
SECTION 7.34.(b) The State Board of Education shall not use funds appropriated for State Aid to Local Administrative Units to contract with an outside organization to evaluate the high priority schools initiative begun in the 2001‑2002 fiscal year. The Board may, however, use up to five hundred thousand dollars ($500,000) previously identified for this purpose to support the ongoing evaluation of the Disadvantaged Student Supplemental Funding Initiative.
SECTION 7.35. Notwithstanding G.S. 143C‑6‑4, the State Board of Education may use monies from the State Public School Fund in the 2007‑2008 fiscal year only to pay for the additional costs associated with an increased number of registration fees for students enrolling in Distance Education courses.
SECTION 7.36A.(a) G.S. 115C‑264.3 reads as rewritten:
"§ 115C‑264.3. Child Nutrition Program standards.
The State Board of Education, in
direct consultation with a cross section of local directors of child nutrition
services, shall establish statewide nutrition standards for school meals, a la
carte foods and beverages, and items served in the After School Snack Program
administered by the Department of Public Instruction and child nutrition
programs of local school administrative units. The nutrition standards will
promote gradual changes to increase fruits and vegetables, increase whole grain
products, and decrease foods high in total fat, trans fat, saturated fat, and
sugar. The nutrition standards adopted by the State Board of Education shall be
implemented initially in elementary schools. All elementary schools shall
achieve a basic level by the end of the 2007‑20082008‑2009
school year, followed by middle schools and then high schools."
SECTION 7.36A.(b) Local education agencies are encouraged to take steps to implement within existing funds and to the extent possible the nutrition program standards under G.S. 115C‑264.3 by the end of the 2007‑2008 school year.
SECTION 7.36A.(c) The Child Nutrition Services Section of the Department of Public Instruction, in direct consultation with a cross section of local directors of child nutrition services, shall study how State funds allocated to support the implementation of nutrition standards in elementary schools should be distributed to ensure fair and equitable distribution of available resources. The Child Nutrition Services Section shall report its findings and recommendations to the Joint Legislative Education Oversight Committee during the 2008 Regular Session of the General Assembly.
SECTION 7.36A.(d) The General Assembly urges the Director of the State Budget to include in the proposed Continuation Budget the amount required to ensure that all kindergarten students in schools that meet the eligibility percentage authorized by the State Board of Education receive a free breakfast.
The State Board shall not adjust that eligibility percentage below thirty‑nine and four one‑hundredths of one percent (39.04%) unless the General Assembly funds an expansion of the program.
FUNDS FOR SCHOOL TECHNOLOGY PILOT
SECTION 7.39.(a) Funds are appropriated in this act to the State Board of Education to be used with a grant of three million dollars ($3,000,000) from the Golden LEAF Foundation and other private sector funds to establish a school technology pilot program. Eight pilot high schools selected by the Golden LEAF Foundation and the Department of Public Instruction shall receive funds to incorporate technology in the classroom. Non‑State monies shall fund student and teacher portable computers. The State Board of Education shall report to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division on the results of this pilot program by March 15, 2009. Up to one hundred thousand dollars ($100,000) may be used to contract with an independent research organization to study the effectiveness of this pilot program on student achievement, to complete a cost‑benefit analysis, to make recommendations for improvements in the program, and to make recommendations regarding the possible continuance or expansion of the program. The remaining State funds shall be used to:
(1) Assess the network capabilities and connectivity needs at each of the eight pilot sites;
(2) Purchase the additional software, hardware, and other equipment necessary to support this program;
(3) Allow each pilot site to use a maximum of one hundred thirty thousand dollars ($130,000) to establish up to two positions to provide on‑site instructional and technical support on a contract basis; and
(4) Provide ongoing professional development to teachers and principals in the pilot schools.
SECTION 7.39.(b) Unused funds at the end of the 2007‑2008 fiscal year for this program shall not revert.
ADM CONFORMITY
SECTION 7.40. Section 8 of S.L. 2007‑145 is repealed
PART VIII. COMMUNITY COLLEGES
USE OF FUNDS FOR THE COLLEGE INFORMATION SYSTEM PROJECT
SECTION 8.1.(a) Funds appropriated to the Community Colleges System Office for the College Information System Project shall not revert at the end of the 2006‑2007 fiscal year but shall remain available until expended.
SECTION 8.1.(b) Notwithstanding G.S. 143C‑6‑4, 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 10 positions or incur expenditures necessary to transfer the maintenance and administration of the College Information System Project from the vendor to the System Office. Personnel positions created pursuant to this subsection shall be located in community colleges across the State.
SECTION 8.1.(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 8.1.(d) Subsection (a) of this section becomes effective June 30, 2007.
CARRYFORWARD OF EQUIPMENT FUNDS FOR COMMUNITY COLLEGES
SECTION 8.2.(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 2006‑2007 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 8.2.(b) This section becomes effective June 30, 2007.
INSTRUCTIONAL RESOURCE ALLOCATION FORMULA
SECTION 8.3. The State Board of Community Colleges shall develop a new funding formula for library books and related instructional resources before distributing funds appropriated for this purpose for the 2007‑2009 fiscal biennium. The revised instructional resource allocation formula shall reflect the availability of online subscription resources and electronic media and should include a base amount per college.
REPORT ON NCCCS DISTANCE LEARNING AND ONLINE CAPABILITIES
SECTION 8.4. The Community Colleges System Office shall report by March 1, 2008, to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management on its efforts regarding distance learning opportunities. This report shall complement the report authorized by the General Assembly in Part 6 of S.L. 2004‑179 and shall address the following:
(1) The expenditure of funds appropriated in this act for bandwidth at community colleges, including a description of each community college's current bandwidth capacity;
(2) A five‑year history of the number of courses offered and number of FTE students served through distance learning;
(3) Results from student and instructor evaluations of distance learning courses;
(4) Current and anticipated future joint efforts between the North Carolina Community College System and The University of North Carolina and North Carolina private colleges, regarding distance learning; and
(5) Analysis of necessary changes or enhancements to improve the sharing of distance learning and online opportunities with The University of North Carolina and the Department of Public Instruction.
COMMUNITY COLLEGE FACULTY SALARY PLAN
(1) Vocational Diploma/Certificate or Less. – This education level includes faculty members who are high school graduates, have vocational diplomas, or have completed one year of college.
(2) Associate Degree or Equivalent. – This education level includes faculty members who have an associate degree or have completed two or more years of college but have no degree.
(3) Bachelor's Degree.
(4) Master's Degree or Education Specialist.
(5) Doctoral Degree.
Education Level Minimum Salary
Vocational Diploma/Certificate or Less $33,314
Associate Degree or Equivalent $33,805
Bachelor's Degree $35,931
Master's Degree or Education Specialist $37,817
Doctoral Degree $40,537.
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.
(1) It is the intent of the General Assembly to encourage community colleges to make faculty salaries a priority and to reward colleges that have taken steps to achieve the national average, therefore:
a. If the average faculty salary at a community college is one hundred percent (100%) or more of the national average community college faculty salary, the college may transfer up to eight percent (8%) of the State funds allocated to it for faculty salaries.
b. If the average faculty salary at a community college is at least ninety‑five percent (95%) but less than one hundred percent (100%) of the national average community college faculty salary, the college may transfer up to six percent (6%) of the State funds allocated to it for faculty salaries.
c. If the average faculty salary at a community college is at least ninety percent (90%) but less than ninety‑five percent (95%) of the national average community college faculty salary, the college may transfer up to five percent (5%) of the State funds allocated to it for faculty salaries.
d. If the average faculty salary at a community college is at least eighty‑five percent (85%) but less than ninety percent (90%) of the national average community college faculty salary, the college may transfer up to three percent (3%) of the State funds allocated to it for faculty salaries.
e. If the average faculty salary at a community college is eighty‑five percent (85%) or less of the national average community college faculty salary, the college may transfer up to two percent (2%) of the State funds allocated to it for faculty salaries.
Except as provided by subdivision (2) of this subsection, a community college shall not transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by this subsection.
(2) With the approval of the State Board of Community Colleges, a community college at which the average faculty salary is eighty‑five percent (85%) or less of the national average may transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by sub‑subdivision e. of subdivision (1) of this subsection. The State Board shall approve the transfer only for purposes that directly affect student services.
The State Board of Community Colleges shall adopt guidelines to implement the provisions of this subdivision.
(3) A local community college may use all State funds allocated to it except for Literacy Funds and Funds for New and Expanding Industries to increase faculty salaries.
SECTION 8.5.(e) As used in this section:
(1) "Average faculty salary at a community college" means the total nine‑month salary from all sources of all nine‑month, full‑time, curriculum faculty at the college, as determined by the North Carolina Community College System on October 1 of each year.
(2) "National average community college faculty salary" means the nine‑month, full‑time, curriculum salary average, as published by the Integrated Postsecondary Education Data System (IPEDS), for the most recent year for which data are available.
STUDY COMMUNITY COLLEGE ACCESS
SECTION 8.6. The Joint Legislative Education Oversight Committee shall conduct a study to determine whether the North Carolina Community College System is appropriately organized to provide adequate geographic access, while minimizing overhead costs. Specifically, the Committee shall review the organization and structure of the Community College System, the number of colleges and satellite campuses within the System, and the location and size of the colleges. The Committee shall also study the State Board of Community Colleges' policy and procedure for approving new programs and whether the State could realize any savings from consolidating high‑cost programs at regional locations.
This study shall determine the appropriateness of the current process and criteria outlined in State Board policy for approving multicampus center designations. The Joint Legislative Education Oversight Committee shall specifically consider whether the establishment of additional multicampuses should be subject to General Assembly approval.
The Joint Legislative Education Oversight Committee shall report the results of the study to the General Assembly prior to April 30, 2008.
COMMUNITY COLLEGE CONNECTIVITY FUNDS
SECTION 8.7. In expending funds appropriated for increasing the bandwidth capacity among the colleges of the North Carolina Community College System, the Community Colleges System Office shall seek the best value among information technology providers in order to maximize online instruction, provide accurate data transmission, and utilize video services.
SECTION 8.8. The Fiscal Research Division, in consultation with the North Carolina Community College System, shall consider modifications to community college funding formulas to ensure that colleges have sufficient funds to adequately serve students when enrollment increases. In the course of the study, the Fiscal Research Division shall:
(1) Make findings and recommendations for a new formula budget computation for the Basic Skills Block Grant, which has not been reviewed for at least two decades and may be impacted by potential changes in the allocation of federal funds for literacy education through the Workforce Investment Act, Title II;
(2) Consider whether funding for equipment and instructional resources should be incorporated into the FTE funding formula;
(3) Make findings and recommendations regarding the appropriateness of adjusting the "Other Costs" factors in the Instructional and Institutional Support formulas; and
(4) Review the Institutional Support formula to determine whether funding is appropriately allocated between the Base Allotment and Enrollment Allotment.
The Fiscal Research Division shall report the results of its study to the Joint Legislative Education Oversight Committee and to the chairs of the Senate Committee on Appropriations/Base Budget and the House of Representatives Appropriations Committee by April 15, 2008.
REALIGNMENT OF STATE AID ALLOCATIONS
SECTION 8.9. The State Board of Community Colleges shall examine new State Aid allocation options that more closely align the allocation and expenditure of State‑appropriated resources. The State Board shall realign the 2007‑2008 formula budget computation to incorporate the Academic Support Supplement into the Institutional Support Formula.
COMMUNITY COLLEGE FACILITIES AND EQUIPMENT FUNDS
SECTION 8.10.(a) Funds in the amount of fifteen million dollars ($15,000,000) are appropriated in section 2 of this act for the 2007‑2008 fiscal year to the Community College Facilities and Equipment Fund. These funds shall be used to award 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. Priority shall be given to projects that (i) are consistent with the college's strategic plan, (ii) have a high potential for promoting economic growth, and (iii) did not receive a grant during the 2006‑2007 fiscal year. Also, projects shall be distributed geographically throughout the State. 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 ($1.00) for every one non‑State dollar ($1.00).
SECTION 8.10.(b) Beginning September 1, 2007, 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.
use of funds for central carolina community college
SECTION 8.13 Funds appropriated by the 2005 General Assembly for equipment and capital improvements for the library at the Harnett County Campus of Central Carolina Community College have not been used for that purpose. Central Carolina Community College may use these funds for a maintenance building on the Harnett County Campus.
PART IX. UNIVERSITIES
NC SCHOOL OF SCIENCE AND MATHEMATICS ENROLLMENT GROWTH FORMULA
SECTION 9.1. The Office of State Budget and Management jointly with The University of North Carolina and the Fiscal Research Division of the General Assembly shall conduct a study to create a formula for enrollment growth at the North Carolina School of Science and Mathematics. This formula shall be used to calculate the amount of funds needed for enrollment growth for the North Carolina School of Science and Mathematics. The formula shall also be used for calculating the enrollment growth funding request to be submitted to the 2008 Session of the North Carolina General Assembly.
REPORTING ON UNC FACULTY WORKLOAD
SECTION 9.2.(a) The Board of Governors of The University of North Carolina shall conduct a study on faculty workload at The University of North Carolina. The study shall be done using the Delaware Study Method of collecting data. Information in the report shall include all of the following:
(1) The faculty workload data for each constituent institution of The University of North Carolina compared to The University of North Carolina enrollment model.
(2) The University of North Carolina faculty workload average as compared to The University of North Carolina enrollment model student credit hours per instructional position.
(3) The faculty workload of regional and peer institutions as compared to each constituent institution faculty average and to The University of North Carolina faculty workload average.
SECTION 9.2.(b) The Board of Governors of The University of North Carolina shall submit the study report to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division no later than March 1, 2008.
USE OF ESCHEAT FUND FOR NEED‑BASED FINANCIAL AID PROGRAMS
SECTION 9.3.(a) There is appropriated from the Escheat Fund income to the Board of Governors of The University of North Carolina the sum of one hundred three million two hundred forty‑three thousand two hundred twenty‑six dollars ($103,243,226) for the 2007‑2008 fiscal year and the sum of one hundred twenty‑four million eight hundred thirty‑one thousand two hundred sixteen dollars ($124,831,216) for the 2008‑2009 fiscal year. There is appropriated from the Escheat Fund income to the State Board of Community Colleges the sum of thirteen million nine hundred eighty‑one thousand two hundred two dollars ($13,981,202) for the 2007‑2008 fiscal year and the sum of thirteen million nine hundred eighty‑one thousand two hundred two dollars ($13,981,202) for the 2008‑2009 fiscal year. There is appropriated from the Escheat Fund income to the Department of Administration, Division of Veterans Affairs, the sum of six million two hundred twenty‑eight thousand six hundred thirty‑three dollars ($6,228,633) for the 2007‑2008 fiscal year and the sum of six million five hundred twenty thousand nine hundred sixty‑four dollars ($6,520,964) for the 2008‑2009 fiscal year. The funds appropriated by this subsection shall be allocated by the State Educational Assistance Authority for need‑based student financial aid in accordance with G.S. 116B‑7.
If the interest income generated from the Escheat Fund is less than the amounts referenced in this subsection, the difference may be taken from the Escheat Fund principal to reach the appropriations referenced in this subsection; however, under no circumstances shall the Escheat Fund principal be reduced below the sum of four hundred million dollars ($400,000,000).
SECTION 9.3.(b) The North Carolina State Education Assistance Authority (SEAA) shall perform all of the administrative functions necessary to implement this program of financial aid. The SEAA shall conduct periodic evaluations of expenditures of the Scholarship Programs to determine if allocations are utilized to ensure access to institutions of higher learning and to meet the goals of the respective programs. SEAA may make recommendations for redistribution of funds to The University of North Carolina, Department of Administration, and the Community College System regarding the respective scholarship programs, and then may authorize redistribution of unutilized funds for a particular fiscal year.
SECTION 9.3.(c) There is appropriated from the Escheat Fund to the Board of Governors of The University of North Carolina the sum of one million one hundred fifty‑seven thousand dollars ($1,157,000) for the 2007‑2008 fiscal year and the sum of one million one hundred fifty‑seven thousand dollars ($1,157,000) for the 2008‑2009 fiscal year to be allocated to the SEAA for need‑based student financial aid to be used in accordance with G.S. 116B‑7 and this act. The SEAA shall use these funds only to provide scholarship loans (known as the Millennium Teaching Scholarship Loan Program) to North Carolina high school seniors interested in preparing to teach in the State's public schools who also enroll at any of the Historically Black Colleges and Universities that do not have Teaching Fellows. An allocation of 20 grants of six thousand five hundred dollars ($6,500) each shall be given to Elizabeth City State University, Fayetteville State University, and Winston‑Salem State University, the three universities without any Teaching Fellows, for the purposes specified in this subsection. The SEAA shall administer these funds and shall establish any additional criteria needed to award these scholarship loans, the conditions for forgiving the loans, and the collection of the loan repayments when necessary.
SECTION 9.3.(d) All obligations to students for uses of the funds set out in this section that were made prior to the effective date of this section shall be fulfilled as to students who remain eligible under the provisions of the respective programs.
BOARD OF GOVERNORS' MEDICAL SCHOLARSHIPS
SECTION 9.4.(a) Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑40.9. Board of Governors' Medical Scholarship Loan Program.
(a) Administration of Medical Scholarship Loan Program. – The Board of Governors' Medical Scholarship Loan Program was established by the Board of Governors of The University of North Carolina. The Board of Governors' Medical Scholarship Loan Program operates under the purview of the Board of Governors and is administered by the Board of Governors.
(b) Medical Scholarship Loan Program. – Pursuant to this section, the Board of Governors' Medical Scholarship Loan Program may provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers, and an annual stipend of five thousand dollars ($5,000) per year to any student who has been accepted for admission to the Duke University School of Medicine, the 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.
(c) Criteria for Awarding Scholarship Loans. – The Board of Governors may adopt standards, including minimum grade point average and scholastic aptitude test scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board of Governors shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program.
(d) Terms of Scholarship Loans. – All awards made under this section shall be made as scholarship loans and shall be evidenced by notes made payable to the Board of Governors 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 of Governors. The Board of Governors shall forgive the loan if, within seven years after graduation, the recipient practices medicine in North Carolina for four years. The Board of Governors 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.
(e) Reversions. – All unused funds appropriated to or otherwise received by the Board of Governors for scholarship loans, 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 9.4.(b) This section becomes effective July 1, 2007, and applies to all awards from the Board of Governors' Medical Scholarship Program made to students admitted into medical school on or after July 1, 2007.
BOARD OF GOVERNORS' DENTAL SCHOLARSHIPS
SECTION 9.5.(a) Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑40.10. Board of Governors' Dental Scholarship Loan Program.
(a) Administration of Dental Scholarship Program. – The Board of Governors' Dental Scholarship Loan Program was established by the Board of Governors of The University of North Carolina. The Board of Governors' Dental Scholarship Loan Program operates under the purview of the Board of Governors and is administered by the Board of Governors.
(b) Dental Scholarship Loan Program. – Pursuant to this section, the Board of Governors' Dental Scholarship Loan Program may provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers to any first‑year students, required dental equipment, and an annual stipend of five thousand dollars ($5,000) per year to any student who has been accepted for admission to the School of Dentistry at the University of North Carolina at Chapel Hill.
(c) Criteria for Awarding Scholarship Loans. – The Board of Governors may adopt standards, including minimum grade point average and scholastic aptitude test scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board of Governors shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program.
(d) Terms of Scholarship Loans. – All awards made under this section shall be made as scholarship loans and 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 of Governors. The Board of Governors shall forgive the loan if, within seven years after graduation, the recipient practices dentistry in North Carolina for four years. The Board of Governors 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.
(e) Reversions. – All unused funds appropriated to or otherwise received by the Board for scholarship loans, 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 9.5.(b) This section becomes effective July 1, 2007, and applies to all awards from the Board of Governors' Dental Scholarship Program made to students admitted to the School of Dentistry at the University of North Carolina at Chapel Hill on or after July 1, 2007.
GRADUATE NURSE SCHOLARSHIP LOANS FOR FULL‑TIME NURSING FACULTY IN THE NC COMMUNITY COLLEGE SYSTEM
SECTION 9.6.(a) G.S. 90‑171.100 reads as rewritten:
"§ 90‑171.100. 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.
(3) A scholarship loan for up to two years in the amount of fifteen thousand dollars ($15,000) per year, per recipient, to nursing faculty in the North Carolina Community College System enrolled in a master's degree program in nursing education.
(b1) 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. Standards adopted by the Commission shall also provide that community college nursing faculty receive preference in awarding scholarship loans under this section. 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. If a recipient under this section is a nursing faculty member at a community college, then as a condition of a scholarship loan received under G.S. 90‑171.100(b)(3), the recipient shall agree to continue to work for the community college system in North Carolina as provided in G.S. 90‑171.101(b).
(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."
SECTION 9.6.(b) G.S. 90‑171.101(b) reads as rewritten:
"(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. provided; unless the recipient was a nursing faculty
member of a community college. In those circumstances, 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 community
college nursing education program 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 program, or in a
community college nursing program if that was a condition of the scholarship
loan, 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."
ESTABLISH THE EDUCATION ACCESS REWARDS NORTH CAROLINA SCHOLARS FUND (EARN)
SECTION 9.7.(a) Article 23 of Chapter 116 of the General Statutes is amended by adding the following new section to read:
"§ 116‑209.26. Education Access Rewards North Carolina Scholars Fund.
(a) The following definitions apply to this section:
(1) Academic year. – A period of time in which a student in matriculated status is expected to complete the equivalent of at least two semesters' or three quarters' academic work.
(2) Eligible postsecondary institution. – A school that is:
a. A constituent institution of The University of North Carolina as defined in G.S. 116‑2(4); or
b. A community college as defined in G.S. 115D‑2(2).
(3) Matriculated status. – Being recognized as a first‑time candidate for a degree or certificate, exclusive of any course credits earned while in high school, in a defined program of study at an eligible postsecondary institution.
(4) Title IV. – Title IV of the Higher Education Act of 1965, as amended.
(b) There is established the Education Access Rewards North Carolina Scholars Fund. The purpose of the Fund is to provide grants to certain eligible students to enable them to obtain an education beyond the high school level at certain postsecondary institutions in North Carolina without incurring student loans to meet their financial need during the first two years of their postsecondary education. The State Education Assistance Authority (SEAA) shall administer the Fund.
(c) Criteria for awarding the grants shall be developed by the SEAA and include all of the following:
(1) The student must qualify as a legal resident of North Carolina, a legal resident of the United States, and as a resident for tuition purposes in accordance with G.S. 116‑143.1.
(2) Within seven months of the fiscal year in which the grant is to be disbursed, the student must have:
a. Graduated from a North Carolina high school;
b. Received a General Education Development (GED) certificate from a North Carolina institution; or
c. Completed a high school education in a home school setting meeting the qualifications and requirements under G.S. 115C‑564.
(3) The student must meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status on a full‑time basis at an eligible postsecondary institution in North Carolina.
(4) The student must be an eligible dependent student. For purposes of this subdivision, an "eligible dependent student" is a student who:
a. Either is classified as dependent for the Title IV programs or is a ward or dependent of the court; and
b. Demonstrates total family income not exceeding two hundred percent (200%) of the applicable federal poverty guideline, according to standards set by the SEAA and measured using data elements available to the SEAA from the Free Application for Federal Student Aid (FAFSA) or such other source as the SEAA may deem appropriate.
(5) The student must meet all other eligibility requirements for the federal Pell Grant.
(6) In order to retain eligibility for a grant for the student's second academic year, the student must meet achievement standards by maintaining satisfactory academic progress in a course of study in accordance with the standards and practices used for Title IV programs by the eligible postsecondary institution in which the student is enrolled.
(7) The student may not receive a grant in an amount that, when combined with the federal Pell Grant, exceeds the student's cost of attendance as defined under Title IV.
(8) The student may not receive a grant under this section for more than the equivalent of two academic years.
(d) The maximum grant for which a student is eligible under this section shall be four thousand dollars ($4,000) per academic year. In the event there are not sufficient funds to provide each eligible student with the maximum grant, it is the intent of the General Assembly that eligible students who have matriculated into an eligible postsecondary institution in North Carolina with at least one academic year of college credit receive the maximum grant amount and all other eligible students shall receive a reduced grant amount.
(e) The grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the SEAA not inconsistent with this section.
(f) The State Education Assistance Authority shall report to the Joint Legislative Education Oversight Committee by December 1, 2009, and by each December 1 thereafter, regarding the Fund and grants awarded from the Fund.
(g) Grant funds unexpended shall remain available to the SEAA for future grants to be awarded under this section."
SECTION 9.7.(b) There is appropriated from the General Fund to the State Education Assistance Authority the sum of twenty‑seven million six hundred five thousand two hundred ten dollars ($27,605,210) for the 2007‑2008 fiscal year and the sum of sixty million dollars ($60,000,000) for the 2008‑2009 fiscal year.
SECTION 9.7.(c) There is appropriated from the Escheat Fund to the State Education Assistance Authority the sum of forty million dollars ($40,000,000) for the 2008‑2009 fiscal year. Notwithstanding any other provision of law, no funds shall be used from the Escheat Fund until all monies from the General Fund appropriated under Section 9.7(c) have been exhausted.
SECTION 9.7.(d) The Director of the Budget shall include the amount necessary to fully fund the EARN grants for all eligible students in the 2009‑2011 continuation budget.
MANAGEMENT FLEXIBILITY TO REORGANIZE BUDGET CODE 16012 UNC BOARD OF GOVERNORS RELATED EDUCATIONAL PROGRAMS
SECTION 9.8.(a) Notwithstanding G.S. 143C‑6‑4, for the 2007‑2008 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.(b) The University of North Carolina General Administration shall report the new budget structure for budget code 16012, as approved by the Office of State Budget and Management, to the Fiscal Research Division of the General Assembly no later than March 31, 2008.
FUTURE TEACHERS OF NC SCHOLARSHIP LOAN PROGRAM
SECTION 9.9. G.S. 116‑209.38(a) reads as rewritten:
"(a) There is
established the Future Teachers of North Carolina Scholarship Loan Fund. The
purpose of the Fund is to provide a two‑year scholarship loan of six
thousand five hundred dollars ($6,500) per year for any North Carolina student
pursuing a college degree to teach in the public schools of the State. The
scholarship loan shall be paid only for the student's junior and senior years.
The scholarship loan is available if the student is enrolled in a State
institution of higher education or a private institution of higher education
located in this State that has an accredited teacher preparation program for
students planning to become certified teachers in North Carolina. The State
Education Assistance Authority shall administer the Fund and shall award 100
150 scholarship loans annually."
SECTION 9.10.(a) The operating budget of the Principals' Executive Program (PEP) is appropriated on a nonrecurring basis for the 2007‑2009 fiscal biennium until the General Assembly receives data showing the program has a positive, measurable impact on conditions for teaching and learning in schools.
SECTION 9.10.(b) The Principals' Executive Program shall develop a formalized admissions policy that does all of the following:
(1) Gives priority to school administrators working in high‑need schools so that State resources are targeted to those who most need support.
(2) Takes into account geographic diversity to ensure that school administrators statewide are served. If more school administrators seek admission than slots are available, the Principals' Executive Program shall retain those names and offer priority admission to those on the waiting list for the next class. The Principals' Executive Program shall also use these waiting lists to assess demand and determine how best to allocate resources among the various executive training courses.
SECTION 9.10.(c) The State Board of Education and the Board of Governors of The University of North Carolina shall recommend to the Joint Legislative Education Oversight Committee a plan to provide input on the Principals' Executive Program's priorities and feedback on its performance. This plan shall be presented no later than April 1, 2008.
REPEAL NORTH CAROLINA PROGRESS BOARD
SECTION 9.11. Part 2A of Article 9 of Chapter 143B of the General Statutes is repealed.
REVERT MOTORSPORTS CAPITAL ACCOUNT
SECTION 9.12. Effective June 30, 2007, the unencumbered balance of the funds appropriated to the NC Motor Sports Testing and Research Complex in Section 32.1 of S.L. 2004‑124, as amended by Section 3 of S.L. 2004‑184, shall revert to the General Fund.
LEGISLATIVE TUITION GRANT FOR PART‑TIME STUDENTS
SECTION 9.13.(a) 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) Grants for Students. –
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 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. A full‑time North Carolina undergraduate student
shall be awarded the full amount of the tuition grant provided by this section.
A part‑time North Carolina undergraduate student who is enrolled to take
at least nine hours of academic credit per semester shall be awarded a tuition
grant in an amount that is calculated on a pro rata basis.
(a1) Grants for Licensure
Students. – 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 part‑time licensure student who
is enrolled less than full‑time to take at least nine hours of undergraduate
academic credit per semester 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. If a course is required for
licensure, but is designated as both an undergraduate and graduate course, for
purposes of this subsection, the course shall be considered an undergraduate
course.
(b) Administration of Grants. – 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 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 or licensure student.
(c) Student or Licensure
Student Change of Status; Audits. – Except as provided in subsection
(a1) of this section, in In the event a full‑time student
on whose behalf a grant has been paid in accordance with subsection (a) of
this section or a full‑time licensure student on whose behalf a grant has
been paid in accordance with subsection (a1) of this section 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 part‑time student on whose behalf a
prorated grant has been paid in accordance with subsection (a) of this section
or a part‑time licensure student on whose behalf a prorated grant has
been paid in accordance with subsection (a1) of this section is not enrolled and
carrying a minimum academic load of nine credit hours per semester 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. If the
matriculated status of a full‑time student or a full‑time licensure
student changes to a matriculated status of part‑time student or part‑time
licensure student by the tenth classroom day following the beginning of the
school term for which the grant was paid, the institution shall refund only the
difference between the amount of the full‑time grant awarded and the amount
of the part‑time grant that is awarded pursuant to this section. 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 them.
(d) Shortfall. – In the event there are not sufficient funds to provide each eligible student or licensure student with a full or prorated 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), (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) Reversions. – Any remaining funds shall revert to the General Fund."
SECTION 9.13.(b) G.S. 116‑43.5 reads as rewritten:
"§ 116‑43.5. State grants to aid eligible students attending certain private institutions of higher education; administrative procedure.
(a) Definitions. – The following definitions apply in this section:
(1) "Institution" means a nonprofit educational institution with a main permanent campus located in this State that satisfies all of the following:
a. Is not owned or operated by the State of North Carolina or by an agency or political subdivision of the State or by any combination thereof.
b. Is accredited by the Southern Association of Colleges and Schools under the standards of the College Delegate Assembly of the Association.
c. Awards a postsecondary degree as defined in G.S. 116‑15.
d. Its students are not eligible for a similar State grant under another State program.
(1a) "Licensure student" means a person who:
a. Has a bachelor's 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.
(2) "Main permanent campus" means a campus that is owned by the institution that provides permanent on‑premises housing, food services, and classrooms with full‑time faculty members and administration that engage in postsecondary degree activity as defined in G.S. 116‑15.
(3) "Student" means a person enrolled in and attending an institution located in the State (i) who qualifies as a resident of North Carolina in accordance with definitions of residency that may from time to time be adopted by the Board of Governors of The University of North Carolina and published in the residency manual of the Board, and (ii) who has not received a bachelors degree, or qualified therefore, and who is otherwise classified as an undergraduate under such regulations as the Board of Governors of The University of North Carolina may promulgate. Qualification for in‑State tuition under G.S. 116‑143.3 makes a person a "student" as defined in this subdivision.
(b) Eligibility.Eligibility
of Students. – A student is eligible for a State grant under this section
for an academic year if the student is a full‑time North Carolina undergraduate student attending an institution as defined by this section
and is not eligible for a similar State grant under another State program for
the same academic year. A full‑time North Carolina undergraduate
student shall be eligible for the full amount of the State grant provided by
this section. A part‑time North Carolina undergraduate student who is
enrolled to take at least nine hours of academic credit per semester shall be
eligible for a State grant under this section calculated on a pro rata basis.
(b1) Eligibility of Licensure Students. – Each full‑time licensure student who is enrolled in a program intended to result in a license in teaching or nursing shall also be eligible for the State grant provided by this section. The State grant provided by this section shall be paid on a pro rata basis to any part‑time licensure student who is enrolled to take at least nine hours of undergraduate academic credit per semester in a program intended to result in a license in teaching or nursing at an approved institution. The State grant and prorated State grant authorized under this subsection shall be paid for undergraduate courses only. If a course is required for licensure, but is designated as both an undergraduate and graduate course, for purposes of this subsection, the course shall be considered an undergraduate course.
(c) Administration. – The State 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 pay the State grant to each student eligible under this section. The amount of the grant shall be determined by the General Assembly. The State grant shall be paid to a student only after the student completes the academic year. The grant shall be paid directly to the student on or after July 1 following the completion of the academic year. The State Education Assistance Authority shall not remit any grant until it receives proper certification from an institution that the student applying for the grant is an eligible student.
(d) Shortfall. – In the
event there are not sufficient funds to provide each eligible student with a
full grant:grant or prorated grant:
(1) Each eligible full‑time
student or full‑time licensure student eligible for a full grant
under this section shall receive a pro rata share of funds for the full
grant then available for the appropriate academic year within the fiscal
period covered by the current appropriation.
(2) Each part‑time student or part‑time licensure student eligible for a prorated grant under this section shall receive a pro rata share of the funds for the prorated grant then available for the appropriate academic year within the fiscal period covered by the current appropriation.
(e) Reversion. – Any remaining funds shall revert to the General Fund.
(f) Reduction of Grant Amount for Certain Students. – A State grant authorized by this act 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.
(f1) Student and Licensure Student Enrollment Documented. – The State Education Assistance Authority shall document the number of full‑time equivalent and part‑time North Carolina undergraduate students and the number of licensure students that are enrolled in private institutions and the State funds collected by students and licensure students at each institution under this section. The State Education Assistance Authority shall report those findings to the Secretary of Administration, the House and Senate Appropriations Subcommittees on Education, and the Joint Legislative Education Oversight Committee.
(g) Limitation on Expenditures. – The State grant shall not be used for any 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."
UNC ITEMIZED BUDGET REQUEST FOR 2009‑2011 FISCAL BIENNIUM
SECTION 9.16.(a) For the 2009‑2010 fiscal year and for the 2010‑2011 fiscal year, the Board of Governors of The University of North Carolina shall submit an itemized budget request to the Director of the Budget for each of the constituent institutions, affiliated entities, and General Administration. The request shall contain the following information:
(1) A description of State‑funded activities and a justification for the existence of each activity as aligned with the mission of The University of North Carolina.
(2) An itemized account of expenditures by personnel and nonpersonnel costs required to maintain the activity at the current level of service.
(3) An itemized account of progress made toward implementation of recommendations of the President's Advisory Committee on Efficiency and Effectiveness (PACE) and additional recommendations proposed and implemented by the chancellors of the constituent institutions.
(4) An itemized account of actual PACE cost savings and cost avoidance and the uses of the repurposed funds.
(5) A request for total required expenditures for the 2009‑2010 fiscal year and for the 2010‑2011 fiscal year showing increases and decreases that are properly and correctly aligned to reflect how the funds are to be expended for each activity.
SECTION 9.16.(b) The requirements of this section are in addition to those imposed by Chapter 143C of the General Statutes and G.S. 116‑11.
establish the John B. Mclendon leadership awards
SECTION 9.18.(a) Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑209.40. John B. McLendon Scholarship Fund.
(a) Fund Established. – The John B. McLendon Scholarship Fund is established as a special fund. The Fund shall be administered by the State Education Assistance Authority.
(b) Fund Earnings, Assets, and Balances. – Interest on the Fund shall be credited to the assets of the Fund and shall become part of the Fund. Any balance remaining in the Fund at the end of any fiscal year shall be carried forward in the Fund for the next succeeding fiscal year.
(c) Fund Purpose. – The interest from the Fund shall be used to provide two leadership scholarships, one for a male athlete student and one for a female athlete student, at each of North Carolina's Historically Black Colleges and Universities that are accredited by the Southern Association of Colleges and Schools under the standards of the College Delegate Assembly of the Association, except that Bennett College shall receive funding for two leadership scholarships for two female athlete students. The scholarships shall be awarded on an annual basis pursuant to this section. The amount of each scholarship shall be one thousand two hundred fifty dollars ($1,250) per academic year.
(d) Eligibility Requirements for a Scholarship. – To be eligible to receive a scholarship under this section, a student must meet all of the following requirements:
(1) The student must meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status at an Historically Black College or University that is accredited by the Southern Association of Colleges and Schools under the standards of the College Delegate Assembly of the Association.
(2) The student must be an athlete participating on a varsity team at the college or university.
(3) The student must demonstrate outstanding leadership qualities, be involved in the college or university community, and maintain high academic standards.
(4) The student must be designated as a recipient for the scholarship by the college or university at which the student has matriculated status.
(e) College or University Recommendations for Scholarship Recipients. – The Chancellor or President, as appropriate, and the Board of Trustees of each Historically Black College or University may designate students as recipients of the John B. McLendon Scholarships under this section.
(f) Rule‑Making Authority. – The State Education Assistance Authority may adopt rules to administer this Fund.
(g) Reporting Requirement. – The State Education Assistance Authority shall report no later than June 1, 2008, and annually thereafter to the Joint Legislative Education Oversight Committee regarding the scholarships awarded pursuant to this section."
SECTION 9.18.(b) Of the funds appropriated by this act to the State Education Assistance Authority for the 2007‑2008 fiscal year the sum of five hundred thousand dollars ($500,000) shall be allocated to the John B. McLendon Scholarship Fund established by G.S. 116‑209.40, as enacted by subsection (a) of this section.
SECTION 9.18.(c) This section becomes effective July 1, 2007; however, no scholarship shall be awarded under this section prior to the academic year of 2008‑2009.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
FUNDS FOR JIM "CATFISH" HUNTER CHAPTER OF THE ALS ASSOCIATION
SECTION 10.3. Funds appropriated in this act for the Jim "Catfish" Hunter Chapter of the ALS Association shall be expended only for services provided within North Carolina.
DHHS PAYROLL DEDUCTION FOR CHILD CARE SERVICES
SECTION 10.4. Subject to rules adopted by the State Controller, an employee of the Department of Health and Human Services may authorize, in writing, the periodic deduction from the employee's salary or wages for employment by the State, a designated lump sum to be paid to satisfy the cost of services received for child care provided by the Department.
NON‑MEDICAID REIMBURSEMENT CHANGES
SECTION 10.5. Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Health and Human Services may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non‑Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one, the Department of Health and Human Services may negotiate with providers of medical services under the various Department of Health and Human Services programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes: contracts or agreements for medical services and purchases of medical equipment and other medical supplies. These negotiated rates are allowable only to meet the medical needs of its non‑Medicaid eligible patients, residents, and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs shall be as follows:
DSB Medical Eye Care 125% FPL
DSB Independent Living <55 125% FPL
DSB Independent Living 55> 200% FPL
DSB Vocational Rehabilitation 125% FPL
DVR Independent Living 125% FPL
DVR Vocational Rehabilitation 125% FPL
The eligibility level for adults in the Atypical Antipsychotic Medication Program in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall be one hundred fifty percent (150%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. Additionally, those adults enrolled in the Atypical Antipsychotic Medication Program who become gainfully employed may continue to be eligible to receive State support, in decreasing amounts, for the purchase of atypical antipsychotic medication and related services up to three hundred percent (300%) of the poverty level.
State financial participation in the Atypical Antipsychotic Medication Program for those enrollees who become gainfully employed is as follows:
Income State Participation Client Participation
(% of poverty)
0‑150% 100% 0%
151‑200% 75% 25%
201‑250% 50% 50%
251‑300% 25% 75%
300% and over 0% 100%
The Department of Health and Human Services shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department.
COMMUNITY HEALTH CENTER CHANGES
SECTION 10.6.(a) Of the funds appropriated in this act for Community Health Grants, the sum of two million dollars ($2,000,000) in recurring funds and the sum of five million dollars ($5,000,000) in nonrecurring funds for the 2007‑2008 fiscal year, and the sum of two million dollars ($2,000,000) for the 2008‑2009 fiscal year shall be 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, school‑based health centers, and other nonprofit organizations that provide primary and preventative 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. 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.
SECTION 10.6.(a1) Notwithstanding subsection (a) of this section, of the funds allocated in this section for the 2007‑2008 fiscal year, the sum of three hundred seventy‑five thousand dollars ($375,000) shall be used to provide a cost of operations increase to eligible school‑based and school‑linked adolescent health centers.
SECTION 10.6.(b) The Office shall work with the North Carolina Community Health Center Association (hereafter "NCCHCA") and the North Carolina Public Health Association (hereafter "NCPHA") to establish an advisory committee to develop an objective and equitable process for awarding grant funds. The Office shall also develop auditing and accountability procedures. Not more than one percent (1%) of the funds appropriated in this section may be used to reimburse the Office for administering the grant program in collaboration with the NCCHCA and the NCPHA.
SECTION 10.6.(c) Recipients of grant funds shall provide to the Office annually a written report detailing the number of additional uninsured and medically indigent patients that are cared for, the types of services that were provided, and any other information requested by the Office as necessary for evaluating the success of the grant program.
SECTION 10.6.(d) The Office shall work with the NCCHCA and NCPHA to study and present recommendations for continuing funds to support the expansion of community health centers, State‑designated rural health centers, and public health departments to serve more of the State's uninsured and indigent population. The Office shall submit the report to the 2008 Regular Session of the 2007 General Assembly upon its convening.
FUNDS TO ASSIST RURAL HOSPITALS
SECTION 10.7. 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 two million dollars ($2,000,000) for the 2007‑2008 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 March 1, 2008.
TRANSFER SHIIP FUNDS TO DEPARTMENT OF INSURANCE
SECTION 10.8. 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 two hundred fifty thousand dollars ($250,000) for the 2007‑2008 fiscal year shall be transferred to the Department of Insurance. These funds shall be allocated by the Department of Insurance to the Seniors Health Insurance Information Program (SHIIP) to provide additional resources for community‑based outreach and enrollment efforts to assist seniors in enrollment in the NCRx Program and Medicare Part D.
COLLABORATION AMONG DEPARTMENTS OF ADMINISTRATION, HEALTH AND HUMAN SERVICES, JUVENILE JUSTICE AND DELINQUENCY PREVENTION, AND PUBLIC INSTRUCTION ON SCHOOL‑BASED CHILD AND FAMILY TEAM INITIATIVE
SECTION 10.9.(a) School‑Based Child and Family Team Initiative established. –
(1) Purpose and duties. – There is established the School‑Based Child and Family Team Initiative. The purpose of the Initiative is to identify and coordinate appropriate community services and supports for children at risk of school failure or out‑of‑home placement in order to address the physical, social, legal, emotional, and developmental factors that affect academic performance. The Department of Health and Human Services, the Department of Public Instruction, the State Board of Education, the Department of Juvenile Justice and Delinquency Prevention, the Administrative Office of the Courts, and other State agencies that provide services for children shall share responsibility and accountability to improve outcomes for these children and their families. The Initiative shall be based on the following principles:
a. The development of a strong infrastructure of interagency collaboration;
b. One child, one team, one plan;
c. Individualized strengths‑based care;
d. Accountability;
e. Cultural competence;
f. Children at risk of school failure or out‑of‑home placement may enter the system through any participating agency;
g. Services shall be specified, delivered, and monitored through a unified Child and Family Plan that is outcome‑oriented and evaluation‑based;
h. Services shall be the most efficient in terms of cost and effectiveness and shall be delivered in the most natural settings possible;
i. Out‑of‑home placements for children shall be a last resort and shall include concrete plans to bring the children back to a stable, permanent home, their schools, and their community; and
j. Families and consumers shall be involved in decision making throughout service planning, delivery, and monitoring.
(2) Program goals and services. – In order to ensure that children receiving services are appropriately served, the affected State and local agencies shall:
a. Increase capacity in the school setting to address the academic, health, mental health, social, and legal needs of children.
b. Ensure that children receiving services are screened initially to identify needs and assessed periodically to determine progress and sustained improvement in educational, health, safety, behavioral, and social outcomes.
c. Develop uniform screening mechanisms and a set of outcomes that are shared across affected agencies to measure children's progress in home, school, and community settings.
d. Promote practices that are known to be effective based upon research or national best practice standards.
e. Review services provided across affected State agencies to ensure that children's needs are met.
f. Eliminate cost shifting and facilitate cost‑sharing among governmental agencies with respect to service development, service delivery, and monitoring for participating children and their families.
g. Participate in a local memorandum of agreement signed annually by the participating superintendent of the local LEA, directors of the county departments of social services and health, director of the local management entity, the chief district court judge, and the chief district court counselor.
(3) Local level responsibilities. – In coordination with the North Carolina Child and Family Leadership Council (Council), the local board of education shall establish the School‑Based Child and Family Team Initiative (Initiative) at designated schools and shall appoint the Child and Family Team Leaders who shall be a school nurse and a school social worker. Each local management entity that has any selected schools in its catchment area shall appoint a Care Coordinator, and any department of social services that has a selected school in its catchment area shall appoint a Child and Family Teams Facilitator. The Care Coordinators and Child and Family Team Facilitators shall have as their sole responsibility working with the selected schools in their catchment areas and shall provide training to school‑based personnel, as required. The Child and Family Team Leaders shall identify and screen children who are potentially at risk of academic failure or out‑of‑home placement due to physical, social, legal, emotional, or developmental factors. Based on the screening results, responsibility for developing, convening, and implementing the Child and Family Team Initiative is as follows:
a. School personnel shall take the lead role for those children and their families whose primary unmet needs are related to academic achievement.
b. The local management entity shall take the lead role for those children and their families whose primary unmet needs are related to mental health, substance abuse, or developmental disabilities and who meet the criteria for the target population established by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.
c. The local department of public health shall take the lead role for those children and their families whose primary unmet needs are health‑related.
d. Local departments of social services shall take the lead for those children and their families whose primary unmet needs are related to child welfare, abuse, or neglect.
e. The chief district court counselor shall take the lead for those children and their families whose primary unmet needs are related to juvenile justice issues.
A representative from each named or otherwise identified publicly supported children's agency shall participate as a member of the Team as needed. Team members shall coordinate, monitor, and assure the successful implementation of a unified Child and Family Plan.
(4) Reporting requirements. – School‑Based Child and Family Team Leaders shall provide data to the Council for inclusion in their report to the North Carolina General Assembly. The report shall include the following:
a. The number of and other demographic information on children screened and assigned to a team and a description of the services needed by and provided to these children;
b. The number of and information about children assigned to a team who are placed in programs or facilities outside the child's home or outside the child's county and the average length of stay in residential treatment;
c. The amount and source of funds expended to implement the Initiative;
d. Information on how families and consumers are involved in decision making throughout service planning, delivery, and monitoring;
e. Other information as required by the Council to evaluate success in local programs and ensure appropriate outcomes; and
f. Recommendations on needed improvements.
(5) Local advisory committee. – In each county with a participating school, the superintendent of the local LEA shall either identify an existing cross agency collaborative or council, or shall form a new group, to serve as a local advisory committee to work with the Initiative. Newly formed committees shall be chaired by the superintendent and one other member of the committee to be elected by the committee. The local advisory committee shall include the directors of the county departments of social services and health, the directors of the local management entity, the chief district court judge, the chief district court counselor, the director of a school-based or school-linked health center if a center is located within the catchment area of the School-Based Child and Family Team Initiative, and representatives of other agencies providing services to children, as designated by the Committee. The members of the Committee shall meet as needed to monitor and support the successful implementation of the School‑Based Child and Family Team Initiative.
The Local Child and Family Team Advisory Committee may designate existing cross agency collaboratives or councils as working groups or to provide assistance in accomplishing established goals.
SECTION 10.9.(b) North Carolina Child and Family Leadership Council. –
(1) Leadership Council established; location. – There is established the North Carolina Child and Family Leadership Council (Council). The Council shall be located within the Department of Administration for organizational and budgetary purposes.
(2) Purpose. – The purpose of the Council is to review and advise the Governor in the development of the School‑Based Child and Family Team Initiative and to ensure the active participation and collaboration in the Initiative by all State agencies and their local counterparts providing services to children in participating counties in order to increase the academic success and reduce out‑of‑home and out‑of‑county placements of children at risk of academic failure.
(3) Membership. – The Superintendent of Public Instruction and the Secretary of Health and Human Services shall serve as cochairs of the Council. Council membership shall include the Secretary of the Department of Juvenile Justice and Delinquency Prevention, the Chairman of the State Board of Education, the Director of the Administrative Office of the Courts, and other members as appointed by the Governor.
(4) The Council shall:
a. Sign an annual memorandum of agreement (MOA) among the named State agencies to define the purposes of the program and to ensure that program goals are accomplished.
b. Resolve State policy issues, as identified at the local level, which interfere with effective implementation of the School‑Based Child and Family Team Initiative.
c. Direct the integration of resources, as needed, to meet goals and ensure that the Initiative promotes the most effective and efficient use of resources and eliminates duplication of effort.
d. Establish criteria for defining success in local programs and ensure appropriate outcomes.
e. Develop an evaluation process, based on expected outcomes, to ensure the goals and objectives of this Initiative are achieved.
f. Review progress made on integrating policies and resources across State agencies, reaching expected outcomes, and accomplishing other goals.
g. Report semiannually, on January 1 and July 1, on progress made and goals achieved to the Office of the Governor, the Joint Appropriations Committees and Subcommittees on Education, Justice and Public Safety, and Health and Human Services, and the Fiscal Research Division of the Legislative Services Office.
The Council may designate existing cross agency collaboratives or councils as working groups or to provide assistance in accomplishing established goals.
SECTION 10.9.(c) Department of Health and Human Services. – The Secretary of the Department of Health and Human Services shall ensure that all agencies within the Department collaborate in the development and implementation of the School‑Based Child and Family Team Initiative and provide all required support to ensure that the Initiative is successful.
SECTION 10.9.(d) Department of Juvenile Justice and Delinquency Prevention. – The Secretary of the Department of Juvenile Justice and Delinquency Prevention shall ensure that all agencies within the Department collaborate in the development and implementation of the School‑Based Child and Family Team Initiative and provide all required support to ensure that the Initiative is successful.
SECTION 10.9.(e) Administrative Office of the Courts. – The Director of the Administrative Office of the Courts shall ensure that the Office collaborates in the development and implementation of the School‑Based Child and Family Team Initiative and shall provide all required support to ensure that the Initiative is successful.
SECTION 10.9.(f) Department of Public Instruction. – The Superintendent of Public Instruction shall ensure that the Department collaborates in the development and implementation of the School‑Based Child and Family Team Initiative and shall provide all required support to ensure that the Initiative is successful.
COMPREHENSIVE TREATMENT SERVICES PROGRAM/ESTABLISHMENT OF TASK FORCE ON THE COORDINATION OF CHILDREN'S SERVICES
SECTION 10.10.(a) The Department of Health and Human Services shall continue the Comprehensive Treatment Services Program for children at risk for institutionalization or other out‑of‑home placement. The Program shall be implemented by the Department in consultation with the Department of Juvenile Justice and Delinquency Prevention, the Department of Public Instruction, and other affected State agencies. The purpose of the Program is to provide appropriate and medically necessary nonresidential and residential treatment alternatives for children at risk of institutionalization or other out‑of‑home placement. Program funds shall be targeted for non‑Medicaid eligible children. Program funds may also be used to expand a system‑of‑care approach for services to children and their families statewide. The program shall include the following:
(1) Behavioral health screening for all children at risk of institutionalization or other out‑of‑home placement.
(2) Appropriate and medically necessary nonresidential and residential services for children within the child mental health deaf and hard of hearing target population.
(3) Appropriate and medically necessary nonresidential and residential treatment services, including placements for sexually aggressive youth.
(4) Appropriate and medically necessary nonresidential and residential treatment services, including placements for youth needing substance abuse treatment services and children with serious emotional disturbances.
(5) Multidisciplinary case management services, as needed.
(6) A system of utilization review specific to the nature and design of the Program.
(7) Mechanisms to ensure that children are not placed in department of social services custody for the purpose of obtaining mental health residential treatment services.
(8) Mechanisms to maximize current State and local funds and to expand use of Medicaid funds to accomplish the intent of this Program.
(9) Other appropriate components to accomplish the Program's purpose.
(10) The Secretary of the Department of Health and Human Services may enter into contracts with residential service providers.
(11) A system of identifying and tracking children placed outside of the family unit in group homes, therapeutic foster care home settings, and other out‑of‑home placements.
(12) The development of a strong infrastructure of interagency collaboration.
(13) Individualized strengths‑based care.
SECTION 10.10.(b) In order to ensure that children at risk for institutionalization or other out‑of‑home placement are appropriately served by the mental health, developmental disabilities, and substance abuse services system, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall do the following with respect to services provided to these children:
(1) Provide only those treatment services that are medically necessary.
(2) Implement utilization review of services provided.
(3) Adopt the following guiding principles for the provision of services:
a. Service delivery system must be outcome‑oriented and evaluation‑based.
b. Services should be delivered as close as possible to the child's home.
c. Services selected should be those that are most efficient in terms of cost and effectiveness.
d. Services should not be provided solely for the convenience of the provider or the client.
e. Families and consumers should be involved in decision making throughout treatment planning and delivery.
f. Services shall be specified, delivered, and monitored through a unified Child and Family Plan incorporating the principles of one‑child‑one‑team‑one‑plan.
g. Out‑of‑home placements for children shall be a last resort and shall include concrete plans to bring the children back to a stable, permanent home, their schools, and their community.
(4) Implement all of the following cost‑reduction strategies:
a. Preauthorization for all services except emergency services.
b. Levels of care to assist in the development of treatment plans.
c. Clinically appropriate services.
SECTION 10.10.(c) The Department shall collaborate with other affected State agencies such as the Department of Juvenile Justice and Delinquency Prevention, the Department of Public Instruction, the Administrative Office of the Courts, and with local departments of social services, area mental health programs, and local education agencies to eliminate cost shifting and facilitate cost‑sharing among these governmental agencies with respect to the treatment and placement services.
SECTION 10.10.(d) The Department shall not allocate funds appropriated for Program services until a Memorandum of Agreement has been executed between the Department of Health and Human Services, the Department of Public Instruction, and other affected State agencies. The Memorandum of Agreement shall address specifically the roles and responsibilities of the various departmental divisions and affected State agencies involved in the administration, financing, care, and placement of children at risk of institutionalization or other out‑of‑home placement. The Department shall not allocate funds appropriated in this act for the Program until the Memoranda of Agreement between local departments of social services, area mental health programs, local education agencies, the Administrative Office of the Courts, and the Department of Juvenile Justice and Delinquency Prevention, as appropriate, are executed to effectuate the purpose of the Program. The Memoranda of Agreement shall address issues pertinent to local implementation of the Program, including provision for the immediate availability of student records to a local school administrative unit receiving a child placed in a residential setting outside the child's home county.
SECTION 10.10.(e) Notwithstanding any other provision of law to the contrary, services under the Comprehensive Treatment Services Program are not an entitlement for non‑Medicaid eligible children served by the Program.
SECTION 10.10.(f) Of the funds appropriated in this act for the Comprehensive Treatment Services Program, the Department of Health and Human Services shall establish a reserve of three percent (3%) to ensure availability of these funds to address specialized needs for children with unique or highly complex problems.
SECTION 10.10.(g) The Department of Health and Human Services, in conjunction with the Department of Juvenile Justice and Delinquency Prevention, the Department of Public Instruction, and other affected agencies, shall report on the following Program information:
(1) The number and other demographic information of children served.
(2) The amount and source of funds expended to implement the Program.
(3) Information regarding the number of children screened, specific placement of children, including the placement of children in programs or facilities outside of the child's home county, and treatment needs of children served.
(4) The average length of stay in residential treatment, transition, and return to home.
(5) The number of children diverted from institutions or other out‑of‑home placements such as training schools and State psychiatric hospitals and a description of the services provided.
(6) Recommendations on other areas of the Program that need to be improved.
(7) Other information relevant to successful implementation of the Program.
SECTION 10.10.(h) The Department shall report on the following Program funding information:
(1) The amount of Program funding allocated and expended by each LME.
(2) The amount of Program funds each LME transferred out of the Program to serve purposes other than those outlined by this Program and an explanation of why LMEs transferred the funding.
(3) Recommendations to improve the penetration rate of Program funds to serve the intended populations across the State.
SECTION 10.10.(i) Article 24 of Chapter 120 of the General Statutes reads as rewritten:
"Article 24.
"The Legislative Study Commission on Children and Youth.
"§ 120‑215. Commission created; purpose.
There is created the Legislative Study Commission on Children and Youth. The purpose of the Commission is to study and evaluate the system of delivery of services to children and youth and to make recommendations to improve service delivery to meet present and future needs of the children and youth of this State. This study shall be a continuing one and the evaluation ongoing.
"§ 120‑216. Commission duties.
The Commission shall have the following duties:
(1) Study the needs of children and youth. This study shall include, but is not limited to:
a. Determining the adequacy and appropriateness of services:
1. To children and youth receiving child welfare services;
2. To children and youth in
the juvenile court system; and
3. Provided by the Division
of Social Services and the Department of Juvenile Justice and Delinquency Prevention.Prevention;
4. To children and youth served by the Mental Health, Developmental Disabilities, and Substance Abuse Services system.
b. Developing methods for identifying and providing services to children and youth not receiving but in need of child welfare services, children and youth at risk of entering the juvenile court system, and children and youth exposed to domestic violence situations.
c. Developing strategies for addressing the issues of school dropout, teen suicide, and adolescent pregnancy.
d. Identifying and evaluating the impact on children and youth of other economic and environmental issues.
e. Identifying obstacles to ensuring that children who are in secure or nonsecure custody are placed in safe and permanent homes within a reasonable period of time and recommending strategies for overcoming those obstacles. The Commission shall consider what, if anything, can be done to expedite the adjudication and appeal of abuse and neglect charges against parents so that decisions may be made about the safe and permanent placement of their children as quickly as possible.
(2) Evaluate problems associated with juveniles who are beyond the disciplinary control of their parents, including juveniles who are runaways, and develop solutions for addressing the problems of those juveniles.
(3) Identify strategies for the development and funding of a comprehensive statewide database relating to children and youth to facilitate State agency planning for delivery of services to children and youth.
(4) Conduct any other studies, evaluations, or assessments necessary for the Commission to carry out its purpose.
"§ 120‑217. Commission membership; terms; compensation.
(a) The Commission shall
consist of 25 26 members, as follows:
(1) Eleven members appointed by the Speaker of the House of Representatives, among them:
a. Four Five
shall be members of the House of Representatives at the time of their
appointment, of whom at least one shall also serve on the House of
Representatives Appropriations Subcommittee on Health and Human Services, one
of whom also serves on the Joint Legislative Education Oversight Committee, one
of whom also serves on the Joint Legislative Oversight Committee on Mental
Health, Developmental Disabilities, and Substance Abuse Services, and one of
whom also serves on the House of Representatives Appropriations Subcommittee on
Justice and Public Safety,
b. One shall be the director of a local health department,
c. One shall be the director of a county department of social services,
d. One shall be a representative
of the general public who has knowledge of issues relating to children and
youth,the parent of a child who is at risk for behavioral, social,
health, or safety problems or academic failure,
e. One shall be a licensed
physician who is knowledgeable about the health needs of children and youth, and
f. One shall be a chief
district court judge recommended by the Council of Chief District Judges.Judges,
and
g. One shall be a representative from the Covenant with North Carolina Children.
(2) Eleven members appointed by the President Pro Tempore of the Senate, as follows:
a. Four Five shall
be members of the Senate at the time of their appointment, of whom at least
one shall also serve on the Senate Appropriations Committee on Health and Human
Services, at least one of whom shall also serve on the Joint Legislative
Education Oversight Committee, at least one of whom shall also serve on the
Joint Legislative Oversight Committee on Mental Health, Developmental
Disabilities, and Substance Abuse Services, and at least one of whom also
serves on the Senate Appropriations Committee on Justice and Public Safety,
b. One shall be the director of a mental health area authority,
c. One shall be a representative of the Association of County Commissioners,
d. One shall be a
representative of the general public who has knowledge of issues relating to
children and youth,a local board of education,
e. One shall be a licensed
attorney whose practice includes the representation of parents accused of
criminal or civil abuse or neglect, and
f. One shall be a chief
district court judge recommended by the Council of Chief District Judges.Judges,
g. One shall be a
representative from the North Carolina Child Advocacy Institute.Action
for Children of North Carolina, and
h. One shall be a representative from the North Carolina Child Fatality Task Force.
(3) The following shall serve ex officio as nonvoting members of the Commission:
a. The Secretary of Health and Human Services, or the Secretary's designee,
b. The State Superintendent of Public Instruction, or the Superintendent's designee,
c. The Secretary of Administration, or the Secretary's designee, and
d. The Director of the Administrative Office of the Courts, or the Director's designee.
(b) Any vacancy shall be filled by the appointing authority who made the initial appointment and by a person having the same qualification. Members' terms shall last for two years. Members may be reappointed for two consecutive terms and may be appointed again after having been off the Commission for two years.
(c) Commission members shall receive no salary as a result of serving on the Commission and the Task Force on the Coordination of Children's Services but shall receive necessary subsistence and travel expenses in accordance with G.S. 120‑3.1, 138‑5, and 138‑6, as applicable.
"§ 120‑218. Commission meetings; public hearings; staff.
(a) The Commission shall hold its initial meeting at the call of the Speaker of the House of Representatives and the President Pro Tempore of the Senate. Subsequent meetings shall be held upon the call of the Commission cochairs. The Speaker of the House of Representatives and the President Pro Tempore of the Senate shall appoint a cochair each from the membership of the Commission.
(b) The Commission may hold public hearings across the State to solicit public input with respect to issues relating to children and youth.
(c) The Commission may contract for clerical or professional staff or for any other services it may require in the course of its ongoing study. At the request of the Commission, the Legislative Services Commission may supply members of the staff of the Legislative Services Office and clerical assistance to the Commission as the Legislative Services Commission considers appropriate. The Commission and the Task Force on the Coordination of Children's Services may, with the approval of the Legislative Services Commission, meet in the State Legislative Building or the Legislative Office Building.
"§ 120‑219. Commission reports.
The Commission shall report to the General Assembly and to the Governor the results of its study and recommendations. A written report shall be submitted to each biennial session of the General Assembly at its convening.
"§ 120‑220. Commission authority.
The Commission and the Task Force on the Coordination of Children's Services has the authority to obtain information and data from all State officers, agents, agencies, and departments, while in discharge of its duties, pursuant to G.S. 120‑19, as if it were a committee of the General Assembly.
"§ 120‑221. Task Force on the Coordination of Children's Services.
(a) There is created the Task Force on the Coordination of Children's Services, which shall be a Task Force of the Commission. The following members of the Commission shall serve on the Task Force:
(1) Five of the Commission members appointed by the Speaker of the House of Representatives, as follows:
a. The Commission member who serves on the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Commission member who is a member of the House of Representatives and who also serves on the Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services,
b. The Commission member who is a local health director,
c. The Commission member who is the parent of a child at risk for behavioral, social, health, or safety problems or academic failure, and
d. The Commission member who is the director of a county department of social services.
(2) Five of the Commission members appointed by the President Pro Tempore of the Senate, as follows:
a. The Commission member who is a member of the Senate and serves on the Joint Legislative Education Oversight Committee, and the Commission member who serves on the Senate Appropriations Committee on Justice and Public Safety,
b. The Commission member who represents a local board of education,
c. The Commission member who is a representative of Action for Children of North Carolina, and
d. The Commission member who is the director of an area authority or county program.
(3) One designee of each of the following ex officio Commission members:
a. The Secretary of Health and Human Services,
b. The Superintendent of Public Instruction, and
c. The Secretary of Administration.
(4) Each cochair of the Commission shall appoint one of the Task Force members as cochair of the Task Force.
(b) The purpose of the Task Force is to study and recommend changes to the Commission, the Governor, and the General Assembly to improve collaboration and coordination among agencies that provide services to children, youth, and families with multiple service needs. Task Force recommendations shall include mechanisms for establishing clear State leadership, consistent policy direction, and increased accountability at the State and local levels. As part of its work, the Task Force shall:
(1) Identify existing State, regional, and local collaborative bodies (including their charges, scopes of authority, and accountability requirements) that have been created by legislation, administrative rule, or agency policy and that are charged with serving, protecting, or improving the well‑being of North Carolina's children, youth, and families. Once it has identified the collaborative bodies, the Task Force shall consider how they could be consolidated, reorganized, or eliminated in order to improve their effectiveness and accountability, increase the likelihood that key players will actively participate, and reduce unnecessary duplication of effort. The Task Force shall also consider the creation of a mechanism for coordination and communication among the State and local collaborative bodies, incentives for collaboration, clarification of roles among agencies, and ways to monitor the extent to which groups are collaborating.
(2) Study the practices of agencies currently implementing a system of care platform of practices and make recommendations regarding whether to adopt those practices statewide and across child‑serving agencies as the preferred mechanism for providing services to children, youth, and families. In examining this issue, the Task Force shall identify those State and local agencies that are currently implementing practices that are consistent with a system of care, those states that have implemented a system of care as a statewide policy initiative, and the extent to which a system of care is cost‑effective.
(3) The Task Force shall also examine the following principles that are associated with a system of care and determine whether to recommend the adoption of a State policy that reflects these principles:
a. Services for children should promote success, safety, and permanence.
b. Services should be child‑ and family‑centered, giving priority to keeping children with their families, in their home, school, and community.
c. Services should actively promote early identification and intervention.
d. Services should be designed to protect the rights of children.
e. Services shall be integrated and comprehensive, addressing the child's physical, educational, social, and emotional needs through a single child and family team.
f. Services shall be outcomes‑accountable and tied to a unified child and family plan.
g. Agency resources and services shall be shared and coordinated.
h. Services shall be provided as close to home as appropriate in the least restrictive setting consistent with what is known to be effective.
i. Services shall be culturally competent.
j. Services shall address the unique strengths, needs, and potential of each child and family, and shall be sufficiently flexible to meet highly individualized child and family needs.
k. Management of the child‑serving system is a responsibility shared among all public and private child‑serving agencies that should be held collectively accountable for outcomes.
(4) In reviewing principles relating to a system of care, the Task Force shall determine whether they articulate goals that are measurable and if not, determine whether they could be modified to reflect measurable goals.
(5) Study any other issues the Task Force determines would improve coordination and collaboration among child‑serving agencies.
(c) The Task Force shall report at least annually to the Commission or more frequently at the request of the cochairs of the Commission, and shall also report on April 1 of each year to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division."
SECTION 10.10.(j) Upon approval of the Legislative Services Commission, the Legislative Services Officer shall assign professional and clerical staff to assist in the work of the Task Force. Professional staff shall be those assigned to subject areas or agencies involving child‑serving programs administered by the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, the Administrative Office of the Courts, and the Department of Public Instruction. Clerical staff shall be furnished to the Task Force through the offices of the House of Representatives and Senate Directors of Legislative Assistants.
SECTION 10.10.(k) The Department shall report on April 1, 2008, and April 1, 2009, on the implementation of subsections (a) through (h) of this section. The reports required under this subsection shall be made to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, and the Fiscal Research Division.
SECTION 10.11.(a) Funds appropriated to the Department of Health and Human Services, Division of Aging and Adult Services, for the 2007‑2009 fiscal biennium, shall be used by the Division of Aging and Adult Services to enhance senior center programs as follows:
(1) To expand the outreach capacity of senior centers to reach unserved or underserved areas; or
(2) To provide start‑up funds for new senior centers.
All of these funds shall be allocated by October 1 of each fiscal year.
SECTION 10.11.(b) Prior to funds being allocated pursuant to this section for start‑up funds for a new senior center, the county commissioners of the county in which the new center will be located shall:
(1) Formally endorse the need for such a center;
(2) Formally agree on the sponsoring agency for the center; and
(3) Make a formal commitment to use local funds to support the ongoing operation of the center.
SECTION 10.11.(c) State funding shall not exceed seventy‑five percent (75%) of reimbursable costs.
QUALITY IMPROVEMENT CONSULTATION PROGRAM FOR ADULT CARE HOMES
SECTION 10.12. The Department's Division of Aging and Adult Services shall develop a Quality Improvement Consultation Program for Adult Care Homes. The purpose of the Program is to promote better care and improve quality of life in a safe environment for residents in adult care homes through consultation and assistance with adult care home providers. The county departments of social services shall be responsible for implementation of the Program with all adult care homes located in the respective county, based on a timetable for statewide implementation.
The Division of Aging and Adult Services shall consult with adult care home providers, county departments of social services, consumer advocates, and other interested stakeholders and parties in the development of the Quality Improvement Consultation Program for Adult Care Homes.
The Program will address the following topics:
(1) Principles and philosophies that are resident‑centered and promote independence, dignity, and choice for residents;
(2) Approaches to develop continuous quality improvement with a focus on resident satisfaction and optimal outcomes;
(3) Dissemination of best practice models that have been used successfully elsewhere;
(4) A determination of the availability of standardized instruments, and their use to the extent possible, to assess and measure adult care home performance according to quality of life indicators;
(5) Utilization of quality improvement plans for adult care homes that identify and resolve issues that adversely affect quality of care and services to residents. The plans include agreed upon time frames for completion of improvements and identification of needed resources;
(6) Training required to equip county departments of social services' staff to implement the Program;
(7) A distinction of roles between the regulatory role of the Department's Division of Health Service Regulation and the quality improvement consultation and monitoring responsibilities of the county departments of social services; and
(8) Identification of staffing and other resources needed to implement the Program.
The Division of Aging and Adult Services shall conduct a pilot of the Quality Improvement Consultation Program for Adult Care Homes. No more than four county departments of social services shall participate in the pilot. The Division of Aging and Adult Services shall consider geographic balance and size in carrying out the pilot. At the conclusion of the pilot, the Division of Aging and Adult Services shall make recommendations regarding the effectiveness of the Quality Improvement Consultation Program for Adult Care Homes. If the Division recommends expansion of the pilot to other counties or statewide implementation of the Program, its report shall include the cost and a proposed timetable for implementing these recommendations, including the identification of any necessary statutory and administrative rule changes. The recommendations shall be made to the Secretary of the Department of Health and Human Services, the North Carolina Study Commission on Aging, the Senate Appropriations Committee on Health and Human Services, and the House of Representatives Subcommittee on Health and Human Services.
STATE‑COUNTY SPECIAL ASSISTANCE
SECTION 10.13.(a) The eligibility of Special Assistance recipients residing in adult care homes on August 1, 1995, shall not be affected by an income reduction in the Special Assistance eligibility criteria resulting from adoption of the Rate Setting Methodology Report and Related Services, providing these recipients are otherwise eligible. The maximum monthly rate for these residents in adult care home facilities shall be one thousand two hundred thirty‑one dollars ($1,231) per month per resident.
SECTION 10.13.(b) 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 unless adjusted by the Department in accordance with subsection (e) of this section.
SECTION 10.13.(c) Effective October 1, 2007, the maximum monthly rate for residents in adult care home facilities shall be one thousand one hundred seventy‑three dollars ($1,173) per month per resident unless adjusted by the Department in accordance with subsection (e) of this section.
SECTION 10.13.(d) The maximum monthly rate for residents in Alzheimer/Dementia special care units shall be one thousand five hundred fifteen dollars ($1,515) per month per resident unless adjusted by the Department in accordance with subsection (e) of this section.
SECTION 10.13.(e) Notwithstanding any other provision of this section, the Department of Health and Human Services shall review activities and costs related to the provision of care in adult care homes and shall determine what costs may be considered to properly maximize allowable reimbursement available through Medicaid personal care services for adult care homes (ACH‑PCS) under federal law. As determined, and with any necessary approval from the Centers for Medicare and Medicaid Services (CMS), and the approval of the Office of State Budget and Management, the Department may transfer necessary funds from the State‑County Special Assistance program within the Division of Social Services to the Division of Medical Assistance and may use those funds as State match to draw down federal matching funds to pay for such activities and costs under Medicaid's personal care services for adult care homes (ACH‑PCS), thus maximizing available federal funds. The established rate for State‑County Special Assistance set forth in subsections (b) and (c) of this section shall be adjusted by the Department to reflect any transfer of funds from the Division of Social Services to the Division of Medical Assistance and related transfer costs and responsibilities from State‑County Special Assistance to the Medicaid personal care services for adult care homes (ACH‑PCS). Subject to approval by the Centers for Medicare and Medicaid Services (CMS) and prior to implementing this section, the Department may disregard a limited amount of income for individuals whose countable income exceeds the adjusted State‑County Special Assistance rate. The amount of the disregard shall not exceed the difference between the Special Assistance rate prior to the adjustment and the Special Assistance rate after the adjustment and shall be used to pay a portion of the cost of the ACH‑PCS and reduce the Medicaid payment for the individual's personal care services provided in an adult care home. In no event shall the reimbursement for services through the ACH‑PCS exceed the average cost of the services as determined by the Department from review of cost reports as required and submitted by adult care homes. The Department shall report any transfers of funds and modifications of rates 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.
SECTION 10.13.(f) 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 rates based on appropriate cost 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 10.14.(a) Part 3 of Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A‑47.1. Special Assistance in‑home payments.
The Department of Health and Human Services may use funds from the existing State‑County Special Assistance for Adults budget to provide Special Assistance payments to eligible individuals in in‑home living arrangements. These payments may be made for up to fifteen percent (15%) of the caseload for all State‑County Special Assistance for Adults. The standard monthly payment to individuals enrolled in the Special Assistance in‑home program shall be seventy‑five percent (75%) of the monthly payment the individual would receive if the individual resided in an adult care home and qualified for Special Assistance, except if a lesser payment amount is appropriate for the individual as determined by the local case manager. The Department shall implement Special Assistance in‑home eligibility policies and procedures to assure that in‑home program participants are those individuals who need and, but for the in‑home program, would seek placement in an adult care home facility. The Department's policies and procedures shall include the use of a functional assessment. The Department shall make this in‑home option available to all counties on a voluntary basis. To the maximum extent possible, the Department shall consider geographic balance in the dispersion of payments to individuals across the State."
SECTION 10.14.(b) For State fiscal year 2007‑2008, qualified individuals shall not receive payments at rates less than they would have been eligible to receive in State fiscal year 2006‑2007.
SECTION 10.15.(a) The maximum gross annual income for initial eligibility, adjusted biennially, for subsidized child care services shall be seventy‑five percent (75%) of the State median income, adjusted for family size.
SECTION 10.15.(b) Fees for families who are required to share in the cost of care shall be established based on a percent of gross family income and adjusted for family size. Fees shall be determined as follows:
FAMILY SIZE PERCENT OF GROSS FAMILY INCOME
1‑3 10%
4‑5 9%
6 or more 8%.
SECTION 10.15.(c) Payments for the purchase of child care services for low‑income children shall be in accordance with the following requirements:
(1) Religious‑sponsored child care facilities operating pursuant to G.S. 110‑106 and licensed child care centers and homes that meet the minimum licensing standards that are participating in the subsidized child care program shall be paid the one‑star county market rate or the rate they charge privately paying parents, whichever is lower.
(2) Licensed child care centers and homes with two or more stars shall receive the market rate for that rated license level for that age group or the rate they charge privately paying parents, whichever is lower.
(3) Nonlicensed homes shall receive fifty percent (50%) of the county market rate or the rate they charge privately paying parents, whichever is lower.
(4) Maximum payment rates shall also be calculated periodically by the Division of Child Development for transportation to and from child care provided by the child care provider, individual transporter, or transportation agency, and for fees charged by providers to parents. These payment rates shall be based upon information collected by market rate surveys.
SECTION 10.15.(d) Provisions of payment rates for child care providers in counties that do not have at least 50 children in each age group for center‑based and home‑based care are as follows:
(1) Except as applicable in subdivision (2) of this subsection, payment rates shall be set at the statewide or regional market rate for licensed child care centers and homes.
(2) If it can be demonstrated that the application of the statewide or regional market rate to a county with fewer than 50 children in each age group is lower than the county market rate and would inhibit the ability of the county to purchase child care for low‑income children, then the county market rate may be applied.
SECTION 10.15.(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 parents for each age group of enrollees within the county. The Division of Child Development shall also calculate a statewide rate and regional market rates for each rated license level for each age category.
SECTION 10.15.(f) Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes and facilities operated pursuant to G.S. 110‑106 may participate in the program that provides for the purchase of care in child care facilities for minor children of needy families. No separate licensing requirements shall be used to select facilities to participate. In addition, child care facilities shall be required to meet any additional applicable requirements of federal law or regulations. Child care arrangements exempt from State regulation pursuant to Article 7 of Chapter 110 of the General Statutes shall meet the requirements established by other State law and by the Social Services Commission.
County departments of social services or other local contracting agencies shall not use a provider's failure to comply with requirements in addition to those specified in this subsection as a condition for reducing the provider's subsidized child care rate.
SECTION 10.15.(g) Payment for subsidized child care services provided with Work First Block Grant funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 10.15.(h) Noncitizen families who reside in this State legally shall be eligible for child care subsidies if all other conditions of eligibility are met. If all other conditions of eligibility are met, noncitizen families who reside in this State illegally shall be eligible for child care subsidies only if at least one of the following conditions is met:
(1) The child for whom a child care subsidy is sought is receiving child protective services or foster care services.
(2) The child for whom a child care subsidy is sought is developmentally delayed or at risk of being developmentally delayed.
(3) The child for whom a child care subsidy is sought is a citizen of the United States.
SECTION 10.16.(a) The Department of Health and Human Services shall allocate child care subsidy voucher funds to pay the costs of necessary child care for minor children of needy families. The mandatory thirty percent (30%) Smart Start subsidy allocation under G.S. 143B‑168.15(g) shall constitute the base amount for each county's child care subsidy allocation. The Department of Health and Human Services shall use the following method when allocating federal and State child care funds, not including the aggregate mandatory thirty percent (30%) Smart Start subsidy allocation:
(1) Funds shall be allocated based upon the projected cost of serving children in a county under age 11 in families with all parents working who earn less than seventy‑five percent (75%) of the State median income.
(2) No county's allocation shall be less than ninety percent (90%) of its State fiscal year 2001‑2002 initial child care subsidy allocation.
SECTION 10.16.(b) The Department of Health and Human Services may reallocate unused child care subsidy voucher funds in order to meet the child care needs of low‑income families. Any reallocation of funds shall be based upon the expenditures of all child care subsidy voucher funding, including Smart Start funds, within a county.
SECTION 10.16.(c) Notwithstanding subsection (a) of this section, the Department of Health and Human Services shall allocate up to twelve million dollars ($12,000,000) in federal block grant funds and State funds appropriated for fiscal years 2007‑2008 and 2008‑2009 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.
CHILD CARE FUNDS MATCHING REQUIREMENT
SECTION 10.17.(a) No local matching funds may be required by the Department of Health and Human Services as a condition of any locality's receiving its initial allocation of child care funds appropriated by this act unless federal law requires a match. 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 10.17.(b) If funds are reallocated to local purchasing agencies in accordance with subsection (a) of this section, 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 House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division no later than April 1, 2008.
SECTION 10.18. Notwithstanding any law to the contrary, funds budgeted for the Child Care Revolving Loan Fund may be transferred to and invested by the financial institution contracted to operate the Fund. The principal and any income to the Fund may be used to make loans, reduce loan interest to borrowers, serve as collateral for borrowers, pay the contractor's cost of operating the Fund, or pay the Department's cost of administering the program.
CHILD CARE MARKET RATE ADJUSTMENTS
SECTION 10.18A. Not later than October 1, 2007, the Department shall implement an adjustment to child care market rates, by region, based upon the 2007 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 2007 Child Care Market Rate Study.
(2) For three‑ to five‑star child care center‑based rates, counties in Regions 2‑5 shall receive thirty percent (30%) of the recommended rate adjustment as defined in the 2007 Child Care Market Rate Study.
(3) For three‑ to five‑star child care home‑based rates, all counties shall receive ten percent (10%) of the recommended rate adjustment as defined in the 2007 Child Care Market Rate Study.
EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES ENHANCEMENTS
SECTION 10.19.(a) Administrative costs shall be equivalent to, on an average statewide basis for all local partnerships, not more than eight percent (8%) of the total statewide allocation to all local partnerships. For purposes of this subsection, administrative costs shall include costs associated with partnership oversight, business and financial management, general accounting, human resources, budgeting, purchasing, contracting, and information systems management.
SECTION 10.19.(b) The North Carolina Partnership for Children, Inc., and all local partnerships shall use competitive bidding practices in contracting for goods and services on contract amounts as follows:
(1) For amounts of five thousand dollars ($5,000) or less, the procedures specified by a written policy to be developed by the Board of Directors of the North Carolina Partnership for Children, Inc.
(2) For amounts greater than five thousand dollars ($5,000), but less than fifteen thousand dollars ($15,000), three written quotes.
(3) For amounts of fifteen thousand dollars ($15,000) or more, but less than forty thousand dollars ($40,000), a request for proposal process.
(4) For amounts of forty thousand dollars ($40,000) or more, a request for proposal process and advertising in a major newspaper.
SECTION 10.19.(c) The North Carolina Partnership for Children, Inc., and all local partnerships shall, in the aggregate, be required to match no less than fifty percent (50%) of the total amount budgeted for the program in each fiscal year of the biennium as follows: contributions of cash equal to at least fifteen percent (15%) and in‑kind donated resources equal to no more than five percent (5%) for a total match requirement of twenty percent (20%) for each fiscal year. The North Carolina Partnership for Children, Inc., may carry forward any amount in excess of the required match for a fiscal year in order to meet the match requirement of the succeeding fiscal year. Only in‑kind contributions that are quantifiable shall be applied to the in‑kind match requirement. Volunteer services may be treated as an in‑kind contribution for the purpose of the match requirement of this subsection. Volunteer services that qualify as professional services shall be valued at the fair market value of those services. All other volunteer service hours shall be valued at the statewide average wage rate as calculated from data compiled by the Employment Security Commission in the Employment and Wages in North Carolina Annual Report for the most recent period for which data are available. Expenses, including both those paid by cash and in‑kind contributions, incurred by other participating non‑State entities contracting with the North Carolina Partnership for Children, Inc., or the local partnerships, also may be considered resources available to meet the required private match. In order to qualify to meet the required private match, the expenses shall:
(1) Be verifiable from the contractor's records.
(2) If in‑kind, other than volunteer services, be quantifiable in accordance with generally accepted accounting principles for nonprofit organizations.
(3) Not include expenses funded by State funds.
(4) Be supplemental to and not supplant preexisting resources for related program activities.
(5) Be incurred as a direct result of the Early Childhood Initiatives Program and be necessary and reasonable for the proper and efficient accomplishment of the Program's objectives.
(6) Be otherwise allowable under federal or State law.
(7) Be required and described in the contractual agreements approved by the North Carolina Partnership for Children, Inc., or the local partnership.
(8) Be reported to the North Carolina Partnership for Children, Inc., or the local partnership by the contractor in the same manner as reimbursable expenses.
Failure to obtain a twenty percent (20%) match by June 30 of each fiscal year shall result in a dollar‑for‑dollar reduction in the appropriation for the Program for a subsequent fiscal year. The North Carolina Partnership for Children, Inc., shall be responsible for compiling information on the private cash and in‑kind contributions into a report that is submitted to the Joint Legislative Commission on Governmental Operations in a format that allows verification by the Department of Revenue. The same match requirements shall apply to any expansion funds appropriated by the General Assembly.
SECTION 10.19.(d) The Department of Health and Human Services shall continue to implement the performance‑based evaluation system.
SECTION 10.19.(e) The Department of Health and Human Services and the North Carolina Partnership for Children, Inc., shall ensure that the allocation of funds for Early Childhood Education and Development Initiatives for State fiscal years 2007‑2008 and 2008‑2009 shall be administered and distributed in the following manner:
(1) Capital expenditures are prohibited for fiscal years 2007‑2008 and 2008‑2009. For the purposes of this section, "capital expenditures" means expenditures for capital improvements as defined in G.S. 143C‑1‑1(d)(5).
(2) Expenditures of State funds for advertising and promotional activities are prohibited for fiscal years 2007‑2008 and 2008‑2009.
SECTION 10.19.(f) A county may use the county's allocation of State and federal child care funds to subsidize child care according to the county's Early Childhood Education and Development Initiatives Plan as approved by the North Carolina Partnership for Children, Inc. The use of federal funds shall be consistent with the appropriate federal regulations. Child care providers shall, at a minimum, comply with the applicable requirements for State licensure pursuant to Article 7 of Chapter 110 of the General Statutes.
SECTION 10.19.(g) For fiscal years 2007‑2008 and 2008‑2009, the local partnerships shall spend an amount for child care subsidies that provides at least fifty‑two million dollars ($52,000,000) for the TANF maintenance of effort requirement and the Child Care Development Fund and Block Grant match requirement.
NCPC PERSONNEL RECORD PROTECTION
SECTION 10.19B.(a) G.S. 143B‑168.12(a)(2) reads as rewritten:
"(a) In order to receive State funds, the following conditions shall be met:
…
(2) The North Carolina Partnership and the local partnerships shall agree to adopt procedures for its operations that are comparable to those of Article 33C of Chapter 143 of the General Statutes, the Open Meetings Law, and Chapter 132 of the General Statutes, the Public Records Law, and provide for enforcement by the Department. The procedures may provide for the confidentiality of personnel files comparable to Article 7 of Chapter 126 of the General Statutes.
…."
SECTION 10.19B.(b) G.S. 143B‑168.14(a)(2) reads as rewritten:
"(a) In order to receive State funds, the following conditions shall be met:
…
(2) Each local partnership shall agree to adopt procedures for its operations that are comparable to those of Article 33C of Chapter 143 of the General Statutes, the Open Meetings Law, and Chapter 132 of the General Statutes, the Public Records Law, and provide for enforcement by the Department. The procedures may provide for the confidentiality of personnel files comparable to Article 7 of Chapter 126 of the General Statutes.
…."
EVALUATION OF EDUCATIONAL SERVICES TO STUDENTS WITH HEARING AND VISUAL IMPAIRMENTS
SECTION 10.20.(a) To ensure students with hearing and visual impairments are appropriately educated in this State, the Department of Health and Human Services and the Department of Public Instruction shall:
(1) Collaborate in an evaluation of the State's entire service delivery model for deaf and blind students, including special needs of the students resulting from additional disabilities other than hearing and visual impairments, the training needs of professional staff, access to assistive technology, and curriculum content.
(2) Determine whether the State's schools for the deaf and blind should remain under the purview of the Department of Health and Human Services or if management of the schools should be transferred to the Department of Public Instruction.
(3) Develop a plan to reduce institutional capacity to an appropriate level for meeting the needs of hearing and visually impaired students in North Carolina.
SECTION 10.20.(b) The Department of Health and Human Services and the Department of Public Instruction shall report their findings and recommendations to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Education/Public Instruction, the House of Representatives Appropriations Subcommittee on Education, and the Fiscal Research Division by April 1, 2008.
EARLY INTERVENTION SERVICES REPORT
SECTION 10.21.(a) 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, 2007, through December 31, 2007:
(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 two hundred percent (200%) of the federal poverty level, between two hundred fifty percent (250%) and three hundred percent (300%) of the federal poverty level, between three hundred fifty percent (350%) and four hundred percent (400%) of the federal poverty level, and over four hundred percent (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 an