GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2013

S                                                                                                                                                     7

SENATE BILL 744

Appropriations/Base Budget Committee Substitute Adopted 5/29/14

Finance Committee Substitute Adopted 5/29/14

Pensions & Retirement and Aging Committee Substitute Adopted 5/29/14

Third Edition Engrossed 5/31/14

House Committee Substitute Favorable 6/11/14

House Committee Substitute #2 Favorable 6/11/14

Sixth Edition Engrossed 6/13/14

Corrected Copy 6/13/14

 

Short Title:        Appropriations Act of 2014.

(Public)

Sponsors:

 

Referred to:

 

May 15, 2014

 

A BILL TO BE ENTITLED

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

 

TITLE OF ACT

SECTION 1.1.  This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2014."

 

INTRODUCTION

SECTION 1.2.  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 as provided in G.S. 143C‑1‑2(b).

 

PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND

 

CURRENT OPERATIONS AND EXPANSION/GENERAL FUND

SECTION 2.1.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated, are adjusted for the fiscal year ending June 30, 2015, according to the schedule that follows. Amounts set out in parentheses are reductions from General Fund appropriations for the 2014‑2015 fiscal year.

 

Current Operations – General Fund                                                                           2014‑2015

 

EDUCATION                                                                                                                                

 

Community Colleges System Office                                                                                  25,762,994

 

Department of Public Instruction                                                                                      15,113,117

 

University of North Carolina – Board of Governors                                                                           

      Appalachian State University                                                                                                       

      East Carolina University                                                                                                              

            Academic Affairs                                                                                                     (620,650)

            Health Affairs                                                                                                                       

      Elizabeth City State University                                                                                                     

      Fayetteville State University                                                                                                        

      North Carolina A & T State University                                                                                        

      North Carolina Central University                                                                                               

      North Carolina State University                                                                                                   

            Academic Affairs                                                                                                   1,839,185

            Agricultural Extension                                                                                                           

            Agricultural Research                                                                                                            

      University of North Carolina at Asheville                                                                                     

      University of North Carolina at Chapel Hill                                                                                  

            Academic Affairs                                                                                                                  

            Health Affairs                                                                                                                       

            Area Health Education Centers                                                                                             

      University of North Carolina at Charlotte                                                                                     

      University of North Carolina at Greensboro                                                                                 

      University of North Carolina at Pembroke                                                                                   

      University of North Carolina School of the Arts                                                                           

      University of North Carolina at Wilmington                                                                                  

      Western Carolina University                                                                                                        

      Winston‑Salem State University                                                                                     (220,272)

      General Administration                                                                                                 1,000,000

      University Institutional Programs                                                                                 29,422,770

      Related Educational Programs                                                                                           50,000

      North Carolina School of Science and Mathematics                                                                    

      Aid To Private Institutions                                                                                                           

Total University of North Carolina – Board of Governors                                                 31,471,033

 

HEALTH AND HUMAN SERVICES                                                                                         

 

Department of Health and Human Services                                                                                        

      Division of Central Management and Support                                                               7,196,823

      Division of Aging and Adult Services                                                                               100,000

      Divisions of Services to the Blind, Deaf, and Hard of Hearing                                                     0

      Division of Child Development and Early Education                                                   (75,846,623)

      Division of Health Service Regulation                                                                             (288,000)

      Division of Medical Assistance                                                                                   61,047,188

      Division of Mental Health, Developmental Disabilities, and

            Substance Abuse Services                                                                                  (16,047,038)

      NC Health Choice                                                                                                    (15,750,000)

      Division of Public Health                                                                                             (5,605,543)

      Division of Social Services                                                                                         13,541,509

      Division of Vocation Rehabilitation                                                                                 (575,336)

Total Health and Human Services                                                                                   (32,227,020)

 

NATURAL AND ECONOMIC RESOURCES                                                                           

 

Department of Agriculture and Consumer Services                                                                614,461

 

Department of Commerce                                                                                                                 

      Commerce                                                                                                                    (991,443)

      Commerce State‑Aid                                                                                                   5,005,473

 

Wildlife Resources Commission                                                                                        (1,010,520)

 

Department of Environment and Natural Resources                                                            1,852,857

 

Department of Labor                                                                                                              39,557

 

JUSTICE AND PUBLIC SAFETY                                                                                               

 

Department of Public Safety                                                                                             63,079,628

 

Judicial Department                                                                                                           5,123,332

 

Judicial Department – Indigent Defense                                                                                 386,037

 

Department of Justice                                                                                                     (32,098,850)

 

GENERAL GOVERNMENT                                                                                                       

 

Department of Administration                                                                                         (11,073,045)

 

Office of Administrative Hearings                                                                                            42,478

 

Department of State Auditor                                                                                                 168,155

 

Office of State Controller                                                                                                     (182,268)

 

Department of Cultural Resources                                                                                                     

      Cultural Resources                                                                                                          666,555

      Roanoke Island Commission                                                                                              (9,000)

 

State Board of Elections                                                                                                       165,223

 

General Assembly                                                                                                                 876,444

 

Office of the Governor                                                                                                          236,521

 

Office of State Budget and Management                                                                                           

      Office of State Budget and Management                                                                          (45,116)

      OSBM – Reserve for Special Appropriations                                                                  (20,000)

 

Housing Finance Agency                                                                                                    9,830,322

 

Department of Insurance                                                                                                                   

      Insurance                                                                                                                      (256,486)

 

Office of Lieutenant Governor                                                                                                  (3,031)

 

Department of Revenue                                                                                                    (1,444,357)

 

Department of Secretary of State                                                                                            37,415

 

Department of State Treasurer                                                                                                          

      State Treasurer                                                                                                            1,523,783

      State Treasurer – Retirement for Fire and Rescue Squad Workers                              (1,499,836)

 

RESERVES, ADJUSTMENTS AND DEBT SERVICE                                                            

 

Reserve for Future Benefit Needs                                                                                   (56,400,000)

 

Reserve for State Health Plan                                                                                         (22,000,000)

 

Reserve for Job Development Investment Grant (JDIG)                                                  (15,571,684)

 

One North Carolina Fund                                                                                                 (7,144,263)

 

Information Technology Fund                                                                                             4,684,488

 

Information Technology Reserve Fund                                                                            (10,342,418)

 

Disability Income Plan                                                                                                      (3,200,000)

 

Medicaid Risk Reserve                                                                                                  117,800,000

 

Reserve for Pending Legislation and Legislative Services

      Commission Litigation                                                                                                  6,500,000

 

Conservation Reserve                                                                                                      10,000,000

 

Debt Service                                                                                                                                    

      General Debt Service                                                                                                 (7,390,916)

      Federal Reimbursement                                                                                                             0

 

TOTAL CURRENT OPERATIONS – GENERAL FUND                                       98,069,620

 

GENERAL FUND AVAILABILITY STATEMENT

SECTION 2.2.(a)  Section 2.2(a) of S.L. 2013‑360 is repealed. The General Fund availability used in adjusting the 2014‑2015 budget is shown below:

                                                                                                                                   FY 2014‑2015

Unappropriated Balance Remaining from Previous Year                                           323,693,704

Anticipated Undercollections from FY 2013‑2014                                                  (429,400,000)

Anticipated Reversions from FY 2013‑2014                                                            407,201,425

 

Less Earmarkings of Year End Fund Balance                                                                             

Savings Reserve                                                                                                       (89,098,836)

Repairs and Renovations                                                                                          (89,098,837)

Beginning Unreserved Fund Balance                                                                        123,297,456

 

Revenues Based on Existing Tax Structure                                                        19,972,100,000

 

Nontax Revenues                                                                                                                          

Investment Income                                                                                                     11,300,000

Judicial Fees                                                                                                            244,500,000

Disproportionate Share                                                                                            109,000,000

Master Settlement Agreement                                                                                  137,500,000

Other Nontax Revenues                                                                                           195,500,000

Insurance                                                                                                                   77,000,000

Highway Fund Transfer                                                                                            215,900,000

Subtotal Nontax Revenues                                                                                        990,700,000

 

Total General Fund Availability                                                                            21,086,097,456

 

Adjustments to Availability: 2014 Session                                                                                   

Transfer from Cash Balances from Department of Agriculture and

Consumer Services Special Funds                                                                          1,210,690

Transfer from Interest from Department of Environment and

Natural Resources (DENR) Special Funds                                                                430,385

Diversion of Funds from DENR Inspection and Maintenance

Control Special Fund                                                                                             3,000,000

Diversion of Funds from DENR Water and Air Account Special Fund                             750,000

Transfer of Federal Insurance Contribution Act (FICA) Fund Cash Balance                 5,255,000

Adjustment of Transfer from Insurance Regulatory Fund                                                 (256,486)

Adjustment of Transfer from Treasurer's Office                                                            1,523,783

Transfer from E‑Commerce Fund                                                                                2,130,000

Transfer from Blount Street Properties Fund                                                                 2,400,000

Increase from ABC Permit Fees                                                                                  9,600,000

Four‑year Phaseout of Provision of Medicaid Hold Harmless

Law Guaranteeing Counties $500,000 Benefit                                                        5,990,000

Redirect Funds from Gross Premiums Tax on Property

Coverage Contracts                                                                                               1,600,000

Phase‑in Sales Tax on Piped Natural Gas                                                                   (2,150,000)

Reduce Sales Tax on Manufactured and Modular Homes                                            (6,100,000)

 

Subtotal Adjustments to Availability: 2014 Session                                                   25,383,372

 

Revised General Fund Availability                                                                       21,111,480,828

 

Less: General Fund Appropriations                                                                           21,111,480,828

 

Unappropriated Balance Remaining                                                                                            0

 

SECTION 2.2.(b)  Effective June 30, 2014, Section 2.2 of S.L. 2013‑360 reads as rewritten:

"…

"SECTION 2.2.(c)  Notwithstanding the provisions of G.S. 143C‑4‑3, the State Controller shall transfer a total of one hundred fifty million dollars ($150,000,000) from the unreserved fund balance to the Repairs and Renovations Reserve on June 30, 2013, and a total of twelve million seven hundred fifty‑one thousand one hundred thirty‑seven dollars ($12,751,137) eighty-nine million ninety-eight thousand eight hundred thirty-seven dollars ($89,098,837) to the Repairs and Renovations Reserve on June 30, 2014. This subsection becomes effective June 30, 2013. Funds transferred under this section to the Repairs and Renovations Reserve are appropriated for the 2013‑2014 and 2014‑2015 fiscal years and shall be used in accordance with G.S. 143C‑4‑3.

"SECTION 2.2.(d)  Notwithstanding G.S. 143C‑4‑2, the State Controller shall transfer a total of two hundred thirty‑two million five hundred thirty‑seven thousand nine hundred forty‑two dollars ($232,537,942) from the unreserved fund balance to the Savings Reserve Account on June 30, 2013, and the sum of thirty‑seven million one hundred twenty‑two thousand three hundred forty‑six dollars ($37,122,346) eighty-nine million ninety-eight thousand eight hundred thirty-six dollars ($89,098,836) from the unreserved fund balance to the Savings Reserve Account on June 30, 2014. Neither of these transfers is an "appropriation made by law," as that phrase is used in Section 7(1) of Article V of the North Carolina Constitution. This subsection becomes effective June 30, 2013.

…."

SECTION 2.2.(c)  Interest from the following funds shall be redirected to the General Fund:

Budget     Fund

Code        Code                 Description

24303       2990                  Marine Conservation Fund

24306       2127                  Dry Cleaning Solvent Cleanup Fund

24318       2054                  Bernard Allen Drinking Water Fund

64301       6342                  Water Pollution Control System Account

64305       6370                  Commercial Leaking Petroleum Storage Tanks Fund

64305       6371                  Noncommercial Leaking Petroleum Storage Tanks Fund

64305       6372                  Inactive Hazardous Sites Fund

64305       6373                  Emergency Response Fund

64305       6375                  Superfund Cost Share Fund

64305       6376                  Brownfield Superfund Fund

64305       6379                  Inactive Hazardous Sites Fund‑S1492

SECTION 2.2.(d)  Notwithstanding G.S. 20‑183.7(c), fees collected for electronic inspection authorizations during the 2014‑2015 fiscal year that would have been credited to the I & M Air Pollution Control Account established under G.S. 143‑215.3A(b1) shall be credited to the State's General Fund.

SECTION 2.2.(e)  Notwithstanding G.S. 105‑449.125, seven hundred fifty thousand dollars ($750,000) of the revenue collected by the Secretary of Revenue from the motor fuel excise tax levied under Part 7 of Article 36C of Chapter 105 of the General Statutes that would otherwise be credited to the Water and Air Quality Account shall be credited to the State's General Fund.

SECTION 2.2.(f)  Notwithstanding G.S. 106‑65.104, the unallotted and unexpended balance of funds in the Bedding Law Account on June 30, 2014, shall be transferred to the General Fund.

SECTION 2.2.(g)  Notwithstanding any other provision of law, fees collected for e‑commerce transactions during the 2014‑2015 fiscal year that would have been credited to the Reserve for E‑Commerce shall be credited to the State's General Fund.

SECTION 2.2.(h)  Notwithstanding the use requirements provided in Section 2 of S.L. 2003‑404, the State Controller shall transfer the sum of two million four hundred thousand dollars ($2,400,000) from the special trust fund created by S.L. 2003‑404 to the General Fund to be used for the purposes expressed and allocated by this act.

SECTION 2.2.(i)  Notwithstanding any other provision of law to the contrary, effective July 1, 2014, the State Controller shall transfer five million two hundred fifty‑five thousand dollars ($5,255,000) from the NC Federal Insurance Contribution Act (FICA) Account to be deposited in the appropriate budget code as determined by the State Controller.

 

PART III. CURRENT OPERATIONS/HIGHWAY FUND

 

CURRENT OPERATIONS/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 adjusted for the fiscal year ending June 30, 2015, according to the following schedule. Amounts set out in parentheses are reductions from Highway Fund Appropriations for the 2014‑2015 fiscal year.

 

Current Operations – Highway Fund                                                                                     2014‑2015

 

Department of Transportation                                                                                                           

      Administration                                                                                                         $ (7,519,785)

 

Division of Highways                                                                                                                        

      Administration                                                                                                                           0

      Construction                                                                                                                3,963,829

      Maintenance                                                                                                              44,381,941

      Planning and Research                                                                                                               0

      OSHA Program                                                                                                                (7,307)

 

Ferry Operations                                                                                                               6,200,000

 

State Aid to Municipalities                                                                                                 9,453,990

 

Intermodal Divisions                                                                                                                         

      Public Transportation                                                                                                                 0

      Aviation                                                                                                                                     0

      Rail                                                                                                                                           0

      Bicycle and Pedestrian                                                                                                               0

 

Governor's Highway Safety                                                                                                     (5,699)

Division of Motor Vehicles                                                                                                  (192,422)

 

Other State Agencies, Reserves, Transfers                                                                         8,098,312

 

Capital Improvements                                                                                                                      0

 

Total Highway Fund Appropriations                                                                    $ 1,980,683,359

 

HIGHWAY FUND AVAILABILITY STATEMENT

SECTION 3.2.  Section 3.2 of S.L. 2013‑360 is repealed. The Highway Fund availability used in adjusting the 2014‑2015 fiscal year budget is shown below:

 

Highway Fund Availability Statement                                                                        2014‑2015

 

Unreserved Fund Balance                                                                                             $ 12,000,000

Estimated Revenue                                                                                                     1,973,750,000

Adjustment to Revenue Availability:                                                                                                   

Gasoline Inspection Tax (Underground Storage Tank Clean Up)                                       (3,458,927)

Motor Fuel Tax (Shallow Draft Navigation Channel Dredging Fund)                                  (1,677,134)

Motor Fuel Tax Refund Repeal (Taxi Cabs)                                                                            69,420

 

Revised Total Highway Fund Availability                                                           $ 1,980,683,359

 

Unappropriated Balance                                                                                                               $ 0

 

PART IV. HIGHWAY TRUST FUND APPROPRIATIONS

 

CURRENT OPERATIONS/HIGHWAY TRUST FUND

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 adjusted for the fiscal year ending June 30, 2015, according to the following schedule. Amounts set out in parentheses are reductions from Highway Trust Fund Appropriations for the 2014‑2015 fiscal year.

 

Current Operations – Highway Trust Fund                                                                           2014‑2015

 

Program Administration                                                                                               ($11,000,000)

Aid to Municipalities                                                                                                                        0

Intrastate                                                                                                                                         0

Secondary Roads                                                                                                                            0

Urban Loops                                                                                                                                   0

Mobility Fund                                                                                                                                  0

Turnpike Authority                                                                                                                           0

Transfer to General Fund                                                                                                                 0

Transfer to Highway Fund                                                                                                                0

Debt Service                                                                                                                                   0

Strategic Prioritization Funding Plan for Transportation Investments                                   67,993,140

 

Total Highway Trust Fund Appropriations                                                          $ 1,162,393,140

 

HIGHWAY TRUST FUND AVAILABILITY STATEMENT

SECTION 4.2.  Section 4.2 of S.L. 2013‑360 is repealed. The Highway Trust Fund availability used in developing the 2014‑2015 fiscal year budget is shown below:

 

Highway Trust Fund Availability Statement                                                                         2014‑2015

 

Unreserved Fund Balance                                                                                                             $ 0

Estimated Revenue                                                                                                     1,162,370,000

Adjustment to Revenue Availability:                                                                                                   

Motor Fuel Tax Refund Repeal (Taxi Cabs)                                                                            23,140

 

Total Highway Trust Fund Availability                                                                $ 1,162,393,140

 

Unappropriated Balance                                                                                                               $ 0

 

PART V. OTHER APPROPRIATIONS

 

INDIAN GAMING EDUCATION REVENUE FUND

SECTION 5.1.  Section 5.4 of S.L. 2013‑360 reads as rewritten:

"SECTION 5.4.(a)  There is appropriated from the Indian Gaming Education Revenue Fund to the Department of Public Instruction, School Technology Fund, the sum of three million dollars ($3,000,000) five million dollars ($5,000,000) for the 2013‑2014 fiscal year and the sum of three million five hundred thousand dollars ($3,500,000)six million dollars ($6,000,000) for the 2014‑2015 fiscal year.

"SECTION 5.4.(b)  G.S. 143C‑9‑7 does not apply to the use of these funds for the 2013‑2015 fiscal biennium."

 

EDUCATION LOTTERY FUNDS/HONESTY IN ADVERTISING AND MARKETING/ESTABLISH THE JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON THE NORTH CAROLINA STATE LOTTERY/NO LOTTERY FUNDS PLEDGED FOR LOCAL INDEBTEDNESS

SECTION 5.2.(a)  Section 6.11(e) of S.L. 2013‑360 reads as rewritten:

"SECTION 6.11.(e)  The appropriations made from the Education Lottery Fund for the 2013‑2015 fiscal biennium are as follows:

                                                                                                  FY 2013‑2014          FY 2014‑2015

 

Classroom Teachers                                                                  $ 220,643,188          $ 220,643,188

                                                                                                                                  $ 381,547,574

Prekindergarten Program                                                                75,535,709               75,535,709                                       124,704,077

Public School Building Capital Fund                                              100,000,000             100,000,000

Scholarships for Needy Students                                                     30,450,000               30,450,000

UNC Need‑Based Financial Aid                                                    10,744,733               10,744,733

UNC Need‑Based Financial Aid Forward Funding Reserve            32,530,359               19,130,728

Digital Learning                                                                               11,928,735               11,928,735

Textbooks                                                                                                                       10,983,161

 

TOTAL APPROPRIATION                                                  $ 481,832,724          $ 468,433,093

                                                                                                                                  $ 658,429,545"

SECTION 5.2.(b)  Section 6.11(f) of S.L. 2013‑360 reads as rewritten:

"SECTION 6.11.(f)  Notwithstanding G.S. 18C‑164, the Office of State Budget and Management shall not transfer funds to the Education Lottery Reserve Fund for the 2013‑2014 fiscal year.year or the 2014‑2015 fiscal year."

SECTION 5.2.(c)  Funds appropriated for Digital Learning shall not revert at the end of the fiscal year but shall remain available until expended.

SECTION 5.2.(d)  G.S. 18C‑114 reads as rewritten:

"§ 18C‑114.  Powers and duties of the Commission.

(a)        The Commission shall have the following powers and duties:

(1)        To Except as provided in G.S. 18C‑130(a), to specify the types of lottery games and gaming technology to be used in the Lottery.

(2)        To prescribe the nature of lottery advertising which shall comply with the following:

a.         All advertising shall include resources for responsible gaming gambling information.

b.         No advertising may intentionally target specific groups or economic classes.

c.         No advertising may be misleading, unfair, deceptive, or present any lottery game as a means of relieving any person's financial or personal difficulties.

d.         No advertising may have the primary purpose of inducing persons to participate in the Lottery.

e.         Advertising which states a total of payments to be paid over a period of time shall state the present value of the prize.

f.          Advertising which states the probability of winning a prize shall not omit the value of the lowest prize to be won.

g.         Advertising which states the odds of winning a prize must, at a minimum, disclose the odds of winning the prize with the largest value.

h.         No advertising or sponsorship may take place in connection with any high school or collegiate sport or high school or collegiate sporting event.

…."

SECTION 5.2.(e)  G.S. 18C‑115 reads as rewritten:

"§ 18C‑115.  Reports.

(a)        Reports on Operation of the Commission. – The Commission shall send quarterly and annual reports on the operations of the Commission to the Governor, State Treasurer, the Lottery Oversight Committee, the Joint Legislative Oversight Committee on the North Carolina State Lottery, and to the General Assembly. The reports shall include complete statements of lottery revenues, prize disbursements, expenses, net revenues, and all other financial transactions involving lottery funds, including the occurrence of any audit.

(b)        Disclosure of Proceeds from Lottery Funding. – Each State department or agency receiving lottery funds shall use its established communications channels to inform the public about amounts received and activities supported by lottery proceeds."

SECTION 5.2.(f)  G.S. 18C‑130 reads as rewritten:

"§ 18C‑130.  Types of lottery games; lottery games and lottery advertising; certain disclosures and information to be provided.

(a)        Unless the General Assembly approves, the Commission may use only draw‑style games and instant scratch‑off games as types of lottery games.The Commission shall determine the types of lottery games that may be used in the Lottery. Games may include instant lotteries, online games, games played on computer terminals or other devices, and other games traditional to a lottery or that have been conducted by any other state government‑operated lottery.

(b)        In lottery games using tickets, each ticket in a particular game shall have printed on it a unique number distinguishing it from every other ticket in that lottery game and an abbreviated form of the game‑play rules, including resources for responsible gaminggambling information. In lottery games using tickets, each no ticket may have printed on it a depiction of one or more cartoon characters, whose primary appeal is not to minors. characters. In lottery games using tickets with preprinted winners, the overall estimated odds of winning prizes shall be printed on each ticket. No name or photograph of a current or former elected official shall appear on the tickets of any lottery game.

(e)        Lottery advertising shall be tastefully designed and presented in a manner to minimize the appeal of lottery games to minors. The use of cartoon characters or of false, misleading, unfair, or deceptive information in lottery advertising is prohibitedprohibited and shall constitute an unfair and deceptive trade practice under G.S. 75‑1.1. All advertising promoting the sale of lottery tickets or shares for a particular game shall include the actual or estimated overall odds of winning the game.

(f)         The Commission shall make available on its Web site a detailed tabulation of the estimated number of prizes of each particular prize denomination that are expected to be awarded in each lottery game or and the estimated odds of winning these prizes each prize at the time that lottery game is offered for sale to the public.

(h)        The University of North Carolina shall develop and make available to the Department of Public Instruction course and professional development materials explaining the probabilities and other mathematical features of a lottery game for inclusion as a component of high school courses in civics and mathematics. The University of North Carolina shall also make available those same materials to the Office of Non‑Public Education in the Department of Administration to be available to other schools.

(i)         The University of North Carolina shall commission or perform research on patterns of:

(1)        Lottery participation as to frequency, amounts spent, family income levels, and other socioeconomic factors.

(2)        Lottery ticket sales locations in comparison to the frequency, amounts spent, family income levels, and other socioeconomic factors of the neighborhoods.

The University of North Carolina shall make such research available to the Legislative Research Commission."

SECTION 5.2.(g)  G.S. 18C‑132 reads as rewritten:

"§ 18C‑132.  Procedures for drawings and claiming prizes; payment of prizes; protection of information concerning certain prize winners.

(a)        If a lottery game uses a daily or less frequent drawing of winning numbers, a drawing among entries including second chance drawings where the value of the prize is five thousand dollars ($5,000) or more, or a drawing among finalists, all of the following conditions shall be met:

(2)        The drawings shall be witnessed by an independent certified public accountant or by an auditor employed by a certified public accounting firm. No advertising of a North Carolina game shall refer to the role of the independent certified public accountant or auditor employed by a certified public accounting firm.

…."

SECTION 5.2.(h)  G.S. 18C‑152 reads as rewritten:

"§ 18C‑152.  Investigation of lottery potential contractors.

(c)        For purposes of this subsection, the term "potential contractor" shall include the potential contractor and each of the persons applicable under subsection (b) of this section. At a minimum, the potential contractor required to disclose information for a thorough background investigation under G.S. 18C‑151 shall do all of the following:

(3)        Disclose all the states and jurisdictions in which the potential contractor has contracts to supply gambling or gaming goods or services, including lottery goods and services, and the nature of the goods or services involved for each state or jurisdiction.

(4)        Disclose all the states and jurisdictions in which the potential contractor has applied for, has sought renewal of, has received, has been denied, has pending, or has had revoked a lottery lottery, gambling, or gaming license or permit of any kind or had fines or penalties assessed on a license, permit, contract, or operation and the disposition of such in each such state or jurisdiction. If any lottery lottery, gambling, or gaming license, permit, or contract has been revoked or has not been renewed or any lottery lottery, gambling, or gaming license, permit, or application has been either denied or is pending and has remained pending for more than six months, all of the facts and circumstances underlying the failure to receive that license shall be disclosed.

(6a)      Disclose as to the potential contractor's demographic data for its employees broken down by the following categories: race, age, sex, and nationality. The Commission may specify age bands and nationality groupings for the disclosure report.

(7)        If at least twenty‑five percent (25%) of twenty percent (20%) of the cost of a potential contractor's contract is subcontracted, the potential contractor shall disclose all of the information required by this section for the subcontractor as if the subcontractor were itself a potential contractor.

…."

SECTION 5.2.(i)  G.S. 18C‑162 reads as rewritten:

"§ 18C‑162.  Allocation of revenues.

(a)        The Commission shall allocate revenues to the North Carolina State Lottery Fund in order to increase and maximize the available revenues for education purposes, and to the extent practicable, shall adhere to the following guidelines:

(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%)two percent (2%) of the total annual revenues.

…."

SECTION 5.2.(j)  G.S. 18C‑164(c) reads as rewritten:

"(c)       The General Assembly shall appropriate the remaining net revenue of the Education Lottery Fund annually in the Current Operations Appropriations Act for education‑related purposes, based upon estimates of lottery net revenue to the Education Lottery Fund provided by the Office of State Budget and Management and the Fiscal Research Division of the Legislative Services Commission. A security interest shall not be granted in funds appropriated pursuant to this subsection."

SECTION 5.2.(k)  Article 8 of Chapter 18C of the General Statutes is amended by adding a new section to read:

"§ 18C‑174.  Venue for civil actions.

Venue for any civil action under this Chapter or for any civil action under G.S. 75‑1.1 for a violation of G.S. 18C‑130(e) shall be in Wake County."

SECTION 5.2.(l)  The provisions of subsection (k) of this section do not affect pending litigation.

SECTION 5.2.(m)  G.S. 18C‑172 is repealed.

SECTION 5.2.(n)  Chapter 120 of the General Statutes is amended by adding a new Article to read:

"Article 34.

"Joint Legislative Oversight Committee on the North Carolina State Lottery.

"§ 120‑295.  Creation and membership of the Joint Legislative Oversight Committee on the North Carolina State Lottery.

(a)        The Joint Legislative Oversight Committee on the North Carolina State Lottery is established. The Committee consists of 22 members as follows:

(1)        Eleven members of the Senate appointed by the President Pro Tempore of the Senate, at least three of whom are members of the minority party; and

(2)        Eleven members of the House of Representatives appointed by the Speaker of the House of Representatives, at least three of whom are members of the minority party.

(b)        Terms on the Committee are for two years and begin on the convening of the General Assembly in each odd‑numbered year. Members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee.

(c)        A member continues to serve until a successor is appointed. A vacancy shall be filled within 30 days by the officer who made the original appointment.

"§ 120‑296.  Purpose and powers of Committee.

(a)        The Joint Legislative Oversight Committee on the North Carolina State Lottery shall examine, on a continuing basis, the operations of the North Carolina State Lottery. The Committee shall make ongoing recommendations to the General Assembly on ways to improve the operations and success of the lottery. The Committee shall do all of the following in conducting its examination of the North Carolina State Lottery:

(1)        Examine the administration, budgeting, and policies of the lottery.

(2)        Assess the lottery's efficiency and effectiveness.

(3)        Review other state lottery policies and procedures to identify improvements and options for maximizing the transfer of lottery funds to the Education Lottery Fund.

(4)        Study any other matters that the Committee considers necessary to fulfill its mandate.

"§ 120‑297.  Organization of Committee.

(a)        The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Joint Legislative Oversight Committee on the North Carolina State Lottery. The Committee shall meet upon the joint call of the cochairs.

(b)        A quorum of the Committee is five members. No action may be taken except by a majority vote at a meeting at which a quorum is present. While in the discharge of its official duties, the Committee has the powers of a joint committee under G.S. 120‑19 and G.S. 120‑19.1 through G.S. 120‑19.4.

(c)        Members of the Committee shall receive subsistence and travel expenses as provided in G.S. 120‑3.1. The Committee may contract for consultants or hire employees in accordance with G.S. 120‑32.02. The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Committee in its work. Upon the direction of the Legislative Services Commission, the Directors of Legislative Assistants of the Senate and of the House of Representatives shall assign clerical staff to the Committee. The expenses for clerical employees shall be borne by the Committee.

(d)        The Committee cochairs may establish subcommittees for the purpose of examining issues relating to services provided by particular divisions within the State's general government departments.

"§ 120‑298.  Reports to Committee.

Whenever the North Carolina State Lottery is required by law to report to the General Assembly or to any of its permanent committees or subcommittees on matters affecting the lottery, it shall transmit a copy of the report to the cochairs of the Joint Legislative Oversight Committee on the North Carolina State Lottery."

SECTION 5.2.(o)  Subsection (c) of this section becomes effective June 30, 2014. Subsection (j) of this section becomes effective July 1, 2014, and applies to debt authorized on or after that date.

 

PART VI. GENERAL PROVISIONS

 

APPROPRIATE ENCUMBERED GRANT FUNDS THAT ARE RETURNED TO THE STATE

SECTION 6.1.  Section 5.1 of S.L. 2013‑360 is amended by adding a new subsection to read:

"SECTION 5.1.(f)  Notwithstanding subsections (a) and (b) of this section, there is appropriated from the General Fund for the 2014‑2015 fiscal year an amount equal to the amount of encumbered funds required to be spent in order to honor encumbrances of grant funds in accordance with G.S. 143C‑6‑23(f2)."

 

ESTABLISHING OR INCREASING FEES UNDER THIS ACT

SECTION 6.2.(a)  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 to the level authorized or anticipated in this act.

SECTION 6.2.(b)  Notwithstanding G.S. 150B‑21.1A(a), an agency may adopt an emergency rule in accordance with G.S. 150B‑21.1A to establish or increase a fee as authorized by this act if the adoption of a rule would otherwise be required under Article 2A of Chapter 150B of the General Statutes.

 

EXPENDITURES OF FUNDS IN RESERVES LIMITED

SECTION 6.3.  All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.

 

STATUTORY CHANGES RELATED TO THE DISPOSITION OF SETTLEMENT FUNDS

SECTION 6.6.(a)  Article 1 of Chapter 114 of the General Statutes is amended by adding a new section to read:

"§ 114‑2.4A.  Disposition of funds received by the State or a State agency from a settlement or other final order or judgment of the court.

(a)        Definition. – For purposes of this section, the term "settlement" means an agreement entered into by the State or a State agency, with or without a court's participation, that ends (i) a dispute, lawsuit, or part of the dispute or lawsuit or (ii) the involvement of the State or State agency in the dispute, lawsuit, or part of the dispute or lawsuit. This term includes settlement agreements, stipulation agreements, consent judgments, and consent decrees.

(b)        Prohibition. – The following restrictions shall apply:

(1)        Funds received by the State or a State agency from a settlement or other final order or judgment of the court shall not be transferred or expended pursuant to G.S. 143C‑6‑4 and shall remain unexpended until the funds are appropriated by the General Assembly.

(2)        The Attorney General, any subordinate who has been delegated the authority to negotiate or approve a settlement, and any private counsel retained to represent a State agency shall have no authority to include or agree to terms or conditions in any settlement that authorizes the expenditure, transfer, or award of funds to any person or entity other than (i) a party to the dispute or lawsuit or (ii) a consumer entitled to a refund or the recovery of damages.

(c)        Exception. – This section does not apply to funds received by the Department of Health and Human Services to the extent those funds represent the recovery of previously expended Medicaid funds.

(d)        Recommendation. – The Attorney General may provide a nonbinding written recommendation to the chairs of the Senate and House Appropriations Committees for their consideration as to what purpose the funds subject to the prohibitions in subsection (b) of this section should be appropriated for.

(e)        Overrealized Receipts. – Any provision of law authorizing the expenditure of overrealized receipts shall not apply to the funds referred to in subdivision (1) of subsection (b) of this section unless the language of the law specifically references this section or specifically references funds received by the State or a State agency from a settlement or other final order or judgment of the court.

(f)         Required Disposition. – If the terms of a federal grant, another provision of State or federal law, or the State Constitution require a specific disposition of funds received from a settlement or other final order or judgment of the court, nothing in this section shall be construed to supersede, or authorize a deviation from, that specific disposition. Furthermore, nothing in this subsection shall be construed to abrogate the requirement that funds drawn from the State treasury be in consequence of appropriations made by law.

(g)        Required Submission. – In addition to any other report or filing that may be required by law, and unless the settlement is sealed pursuant to a written order of the court in accordance with G.S. 132‑1.3 or federal law, the Attorney General's Office shall submit a copy to the Legislative Library of any settlement or other final order or judgment of the court in which the State or a State agency receives funds. The submission required by this subsection shall be made within 60 days of the date (i) the settlement is entered into or (ii) the final order or judgment of the court is entered. Any information deemed confidential by State or federal law shall be redacted from the copy of the settlement or other final order or judgment of the court prior to submitting it to the Legislative Library."

SECTION 6.6.(b)  This section is effective July 1, 2014, and applies to settlements entered into on or after that date and other final orders or judgments of the court entered on or after that date.

 

ORDER OF APPROPRIATIONS BILLS

SECTION 6.8.  G.S. 143C‑5‑2 reads as rewritten:

"§ 143C‑5‑2.  Order of appropriations bills.

(a)        Each house of the General Assembly shall first pass its version of the Current Operations Appropriations Act on third reading and order it sent to the other chamber before placing any other appropriations bill on the calendar for second reading. This section does not apply to the following bills:

(1)        An appropriations bill to respond to an emergency as defined by G.S. 166A‑19.3.

(2)        An appropriations bill making adjustments to the current year budget.

(3)        An appropriations bill authorizing continued operations at current funding levels.

(b)        The provisions of subsection (a) of this section shall apply to each fiscal year of the biennium."

 

REPORTING ON AGENCY REORGANIZATIONS AND MOVEMENTS OF POSITIONS

SECTION 6.10.  Article 6 of Chapter 143C of the General Statutes is amended by adding a new section to read:

"§ 143C‑6‑12.  Quarterly report on State agency reorganizations and movements of positions.

The Office of State Budget and Management shall report quarterly to the Joint Legislative Commission on Governmental Operations and the appropriate Joint Legislative Oversight Committee on reorganizations of State agencies and movements of State agency positions. Each report submitted pursuant to this section shall include all of the following information for the previous quarter:

(1)        A list of all reorganizations within State agencies or between State agencies.

(2)        A list of all positions moved within a State agency or between State agencies.

(3)        A statement of the purpose of each reorganization and position movement undertaken and of the legal authority under which each reorganization and position movement was made."

 

Contingency and Emergency Fund

SECTION 6.12.  Section 6.1 of S.L. 2013‑360 reads as rewritten:

"SECTION 6.1.  For the 2013-2015 fiscal biennium and notwithstanding the provisions of G.S. 143C-4-4(b), funds appropriated to the Contingency and Emergency Fund may be used only for expenditures required (i) by a court or Industrial Commission order or order, (ii) to respond to events as authorized under G.S. 166A-19.40(a) of the North Carolina Emergency Management Act. Act, or (iii) for litigation expenses incurred by State agencies in defense of the State during the 2014‑2015 fiscal year, in an amount not to exceed seven hundred fifty thousand dollars ($750,000), as approved by the Office of State Budget and Management.

These funds shall not be used for other statutorily authorized purposes or for any other contingencies and emergencies."

 

Department of Administration/Eugenics Program Amendments

SECTION 6.13.(a)  G.S. 143B‑426.51 reads as rewritten:

"§ 143B‑426.51.  Compensation payments.

(a)        A claimant determined to be a qualified recipient under this Part shall receive lump‑sum compensation in the amount determined by this subsection from funds appropriated to the Department of State Treasurer for these purposes. Except as provided by the succeeding sentence, the amount of compensation for each qualified recipient is the sum of ten million dollars ($10,000,000) divided by the total number of qualified recipients, and all such payments shall be made on June 30, 2015. The State Treasurer shall reduce the ten million dollars ($10,000,000) by holding out a pro‑rata amount per claimant for any cases in which there has not been a final determination of the claim on June 30, 2015. Payments made to persons determined to be qualified claimants after that date shall be made upon such determination, and if after final adjudication of all claims there remains a balance from the funds held out, they shall be paid pro‑rata to all qualified claimants.A qualified recipient shall receive compensation in the form of two payments. The initial payment and largest payment shall be made in October 2014. A second and final payment shall be made after the exhaustion of all appeals arising from the denial of eligibility for compensation under this Part.

The initial payment to each qualified recipient will be calculated by adding together the number of qualified recipients as of October 1, 2014, and the number of claims outstanding that are pending, then dividing that total number into the sum of ten million dollars ($10,000,000). The initial payment checks shall be remitted by October 31, 2014.

The final payment calculation will be made by taking the balance of compensation funds remaining after the exhaustion of appeals and dividing that sum equally between the number of qualified recipients determined finally to be eligible to receive compensation. The final payment checks shall be remitted within 90 days of the exhaustion of the last appeal. Any qualified claimant who was successful on appeal and who did not receive an initial payment shall be paid an amount equal to the initial payment amount, plus the amount from the final payment calculation.

The State Controller and the State Treasurer shall collaborate to facilitate the administration of this section so as to effectuate the compensation of qualified recipients as soon as practicable.

(b)        If any claimant shall die during the pendency of a claim, or after being determined to be a qualified recipient, any payment shall be made to the estate of the decedent.

(c)        A qualified recipient may assign compensation received pursuant to subsection (a) of this section to a trust established for the benefit of the qualified recipient.

(d)        It is the public policy of this State that funds awarded for the compensation of sterilization victims under this Part may be used only for the purpose of benefiting victims and shall not be used to pay attorneys' fees arising from representation at the Office of Justice for Sterilization Victims, before the Industrial Commission, or on appeal. The General Assembly finds that qualified recipients have suffered a unique harm that calls for a unique remedy and that there are sufficient sources of assistance and pro bono legal representation available to protect their interests. Therefore, any agreement for the acceptance of attorneys' fees is null and void unless counsel has sought and received an opinion from the North Carolina State Bar that the fee arrangement is reasonable under the Rules of Professional Conduct.

(e)        By December 1, 2014, the Office shall submit all remaining claim forms to the Industrial Commission for appropriate disposition in accordance with this Part."

SECTION 6.13.(b)  G.S. 143B‑426.52(a) reads as rewritten:

"(a)       An individual shall be entitled to compensation as provided for in this Part if a claim is submitted on behalf of that individual in accordance with this Part Part, or is mailed and postmarked, on or before June 30, 2014, and that individual is subsequently determined by a preponderance of the evidence to be a qualified recipient, except that any competent adult who gave consent is not a qualified recipient unless that individual can show by a preponderance of the evidence that the consent was not informed."

SECTION 6.13.(c)  G.S. 143B‑426.53(i) is repealed.

SECTION 6.13.(d)  G.S. 105‑153.5(b)(9) is repealed.

SECTION 6.13.(e)  Section 6.18(f) of S.L. 2013-360 reads as rewritten:

"SECTION 6.18.(f)  Of the funds appropriated to the Eugenics Sterilization Compensation Fund, the sum of one hundred twenty‑three thousand seven hundred forty‑eight dollars ($123,748) shall be transferred Of the funds appropriated to the Office of Justice for Sterilization Victims to pay the continued operations of the Justice for Sterilization Victims Foundation Victims, the sum of one hundred thirty thousand dollars ($130,000) is appropriated to the Department of Administration for the 2013‑2014 fiscal year.year to pay the costs of administering the compensation program for sterilization victims."

SECTION 6.13.(f)  Of the funds appropriated from the General Fund to the Office of Justice for Sterilization Victims, Department of Administration, the sum of one hundred thirty thousand dollars ($130,000) shall be used for the 2014‑2015 fiscal year to pay the costs of administering the compensation program for sterilization victims.

SECTION 6.13.(g)  Section 6.18(g) of S.L. 2013‑360 reads as rewritten:

"SECTION 6.18.(g)  Subsection (b) of this section becomes effective for taxable years beginning on or after January 1, 2015. Subsections (e) and (g) of this section are effective when this act becomes law. The remainder of this section becomes effective July 1, 2013. Except for the provisions of subsections (b) and (c) of this section, and the final adjudication of any claims under subsection (a) of this section that are pending on June 30, 2015, this section expires June 30, 2015.June 30, 2015, and the Office of Justice for Sterilization Victims is abolished."

SECTION 6.13.(h)  G.S. 108A-70.5 is amended by adding a new subsection to read:

"(f)       With regard to any recipient who has received compensation pursuant to Part 30 of Article 9 of Chapter 143B of the General Statutes, the Department shall reduce the amount of any recovery it seeks from the deceased recipient's estate under this section by the amount of the resource disregard provided for in G.S. 143B-426.56(b)(1)."

 

PART VII. INFORMATION TECHNOLOGY

 

INFORMATION TECHNOLOGY FUND

SECTION 7.1.  Section 7.1 of S.L. 2013‑360 reads as rewritten:

"SECTION 7.1.  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 2013‑2014          FY 2014‑2015

 

General Fund Appropriation for IT Fund                          $6,053,142                        $6,055,342$7,608,142

General Fund Appropriation for

Government Data Analytics Center                            $3,000,000                        $4,417,515$6,417,515

Criminal Justice Law Enforcement Automated Data System

(CJLEADS)                                                                                                  $1,129,488

Interest                                                                                   $2,200                               $2,200

IT Fund Balance, June 30                                                              $0                                      $0$2,200

 

Total Funds Available                                                         $9,055,342                      $10,475,057$15,159,545

Appropriations are made from the Information Technology Fund for the 2013‑2015 fiscal biennium as follows:

Information Technology Operations

Criminal Justice Information Network                                  $189,563                           $189,563

Center for Geographic Information and Analysis                  $495,338                           $495,338$495,338

Enterprise Security Risk Management                                 $864,148                           $864,148

Enterprise Project Management Office                             $1,473,285                        $1,473,285

Architecture and Engineering                                               $851,986                           $851,986

State Web SitePortal                                                          $224,741                           $224,741$224,741

Enterprise Licenses                                                               $33,000                             $33,000

Longitudinal Data Board                                                                                                   $5,000

Subtotal Information Technology Operations                    $4,132,061                        $4,132,061$4,137,061

 

Information Technology Projects

Government Data Analytics Center                                  $3,000,000                        $4,417,515$6,417,515

CJLEADS                                                                                                                 $1,129,488

IT Consolidation                                                              $1,021,081                        $1,021,081

Electronic Forms/Digital Signatures                                     $900,000                           $900,000$450,000

Enterprise Resource Planning                                                                                     $2,000,000

Subtotal Information Technology Projects                        $4,921,081                        $6,338,596$9,018,084

 

Total                                                                              $9,053,142                      $10,470,657$15,155,145

 

Unless a change is approved by the State Chief Information Officer after consultation with the Office of State Budget and Management, funds appropriated to the Information Technology Fund shall be spent only as specified in this section. Changes shall not result in any degradation to the information technology operations or projects listed in this section for which the funds were originally appropriated.

Any changes to the specified uses shall be reported immediately in writing to the Chairs of the Joint Legislative Oversight Committee on Information Technology, the Chair and Cochair of the House Appropriations Subcommittee on Information Technology, and the Fiscal Research Division.

Funding appropriated to the IT Fund for Enterprise Resource Planning (ERP) shall be used by the State Chief Information Officer, in conjunction with the NC Government Efficiency and Reform Initiative (NC GEAR) and the State Controller, to develop a strategic implementation plan for a Statewide Enterprise Resource Planning System. The plan shall be submitted to the Joint Legislative Oversight Committee on Information Technology by January 31, 2015."

 

INFORMATION TECHNOLOGY INTERNAL SERVICE FUND/RATE SETTING

SECTION 7.2.  Section 7.2 of S.L. 2013‑360 reads as rewritten:

"…

"SECTION 7.2.(b)  IT Internal Service Fund. – For each year of the 2013‑2015 fiscal biennium, the 2014‑2015 fiscal year, receipts for the IT Internal Service Fund shall not exceed one hundred ninety million dollars ($190,000,000), excluding a 60‑day balance for contingencies. Rates approved by the Office of State Budget and Management (OSBM) to support the IT Internal Service Fund shall be based on this fund limit. In the event the Fund exceeds the required limit, rates shall be adjusted within 30 days. In the event that an increase in receipts for the IT Internal Service Fund is required, the Office of Information Technology services may only implement the increase after consultation with the Joint Legislative Commission on Governmental Operations.

"SECTION 7.2.(c)  Rate Setting. – By October 31, 2013, October 31, 2014, the State Chief Information Officer shall establish consistent, fully transparent, easily understandable rates that reflect industry standards for each service for which any agency is charged. A report explaining the rate structure shall be submitted to the Joint Legislative Commission on Governmental Operations, the Chairs of the Joint Legislative Oversight Committee on Information Technology, the House Appropriations Subcommittee on Information Technology, and the Fiscal Research Division. An interim report shall be submitted by July 30, 2013. Overhead charges to agencies shall be consistently applied and shall reflect industry standards for the particular service. Rate increases shall require the approval of OSBM and consultation with the Joint Legislative Commission on Governmental Operations. Rate reductions may be implemented following notification of OSBM.

"SECTION 7.2.(c1)  By October 31, 2014, the State Chief Information Officer shall establish rates for use of the Criminal Justice Law Enforcement Automated Data System (CJLEADS) by federal and private entities and users outside the State. These rates shall be reported to the Joint Legislative Oversight Committee on Information Technology.

…."

 

INFORMATION TECHNOLOGY RESERVE FUND

SECTION 7.3.  Section 7.3 of S.L. 2013‑360 reads as rewritten:

"SECTION 7.3.(a)  Funds in the Information Technology (IT) Reserve Fund for the 2013‑2014 fiscal year consist of the sum of twenty‑eight million dollars ($28,000,000) appropriated from the General Fund. Funds in the IT Reserve Fund for the 2014‑2015 fiscal year consist of the sum of twenty-one million two hundred forty thousand sixty‑seven dollars ($21,240,067) appropriated from the General Fund.

"SECTION 7.3.(b)  The IT Reserve Fund shall be established in the Office of the State Chief Information Officer (CIO). It shall be interest‑bearing and nonreverting. The State CIO shall follow established procedures for project approval. Appropriations are made from the IT Reserve Fund for the 2013‑2015 fiscal biennium as follows:

                                                                                                  FY 2013‑2014          FY 2014‑2015

Prepare/Focus                                                                           $        250,000           $                   0

Plan                                                                                                 1,570,806                 2,239,512

Build                                                                                                1,507,353 2,882,2541,507,353

Remediation                                                                                     1,100,000                    600,000

Security                                                                                           1,571,394                    392,788

Network Simplification                                                                                   0                 4,832,485

Desktop Remediation                                                                    17,000,00013,300,0006,944,968

Desktop Software Licenses                                                              4,015,000                 2,300,000

Operate                                                                                                985,447      685,446185,446

Customer Data                                                                                               0               1,000,0000

Secure Sign‑On                                                                                              0 3,350,0002,237,515

Innovation Center                                                                                           0                               0

"SECTION 7.3.(c)  By September 15, 2013,September 15, 2014, the State Chief Information Officer shall provide aupdate the time line for completing initiatives included in the IT Reserve Fund to the Joint Legislative Oversight Committee on Information Technology, the House Appropriations Subcommittee on Information Technology, and the Fiscal Research Division. The time line shall include the dates for completion of a strategic plan, an enterprise architecture, a new business case methodology, and implementation of a new project management process. Not later than the dates specified in the time line, each of these documents shall be submitted to the Joint Legislative Oversight Committee on Information Technology, the House Appropriations Subcommittee on Information Technology, and the Fiscal Research Division.

"SECTION 7.3.(d)  Unless a change is approved by the State Chief Information Officer after consultation with the Office of State Budget and Management, funds appropriated to the IT Reserve Fund shall be spent only as specified in this section."

 

INFORMATION TECHNOLOGY OPERATIONS

SECTION 7.4.(a)  Section 7.4 of S.L. 2013‑360 is amended by adding a new subsection to read:

"SECTION 7.4.(a1)  Unless an exception is granted in writing by the State Chief Information Officer, any new equipment purchased by State agencies to replace equipment currently housed in State agency data centers and any equipment purchased to provide new data center capabilities for State agencies shall be installed in Office of Information Technology Services data centers. Prior to purchasing any new equipment, State agencies shall coordinate with the Office of the State Chief Information Officer and the Office of Information Technology Services to ensure ITS has the capability to support planned equipment purchases."

SECTION 7.4.(b)  Section 7.4(c) of S.L. 2013‑360 reads as rewritten:

"SECTION 7.4.(c)  Restructuring Plan. – The State CIO shall conduct a comprehensive review of the State's overall information technology operations, including the efficacy of existing exemptions and exceptions from unified State IT governance. Based upon this analysis, the The State CIO shall develop a update the plan to restructure the State's IT operations for the most effective and efficient utilization of resources and capabilities. The plan shall include identifying, documenting, and providing a framework for developing and implementing the education and training required for all State information technology personnel, including information technology contracting professionals. Each State agency, department, and institution, and The University of North Carolina, shall (i) cooperate fully with the Office of the State CIO during the review and assessment phase of restructuring plan development and (ii) provide to the State CIO all information needed to carry out the purposes of this subsection. By May 1, 2014, December 1, 2014, the State CIO shall present the plan to the Joint Legislative Oversight Committee on Information Technology, along with any recommended legislative proposals for implementation to be considered for introduction during the 2014 Regular Session of the 2013 General Assembly.to the 2015 General Assembly."

 

TAX INFORMATION MANAGEMENT SYSTEM CHANGES

SECTION 7.5.(a)  The public‑private partnerships previously initiated to develop and implement the Tax Information Management Systems (TIMS) are no longer authorized. Effective July 1, 2014, all funding for the TIMS project must be appropriated by the General Assembly to the Department of Revenue for each initiative comprising the project, including all funding generated by the benefits stream.

SECTION 7.5.(b)  Section 7.17 of S.L. 2013‑360, as amended by Section 2.1 of S.L. 2013‑363, reads as rewritten:

"SECTION 7.17.(a)  Additional Public‑Private Partnership. – The Secretary of Revenue may enter into an additional public‑private arrangement in order to expand the implementation of the Tax Information Management System (TIMS). All such arrangements will terminate June 30, 2018. The public‑private arrangement may include terms necessary to implement additional revenue‑increasing or cost‑savings components if all of the following conditions are met:January 31, 2014.

(1)        The funding of the project under the arrangement comes from revenue generated by or cost‑savings resulting from the project.

(2)        The funding of the project is dependent on increased revenue or cost‑savings streams that are different from the existing benefits stream for the implementation of TIMS.

(3)        The project involves additional identified initiatives that will be integrated into the TIMS solution.

"SECTION 7.17.(b) Contracts. – Work under an additional public‑private arrangement that is authorized by this section may be contracted by requests for proposals, modifications to the existing contracts, purchases using existing contracts, or other related contract vehicles.

"SECTION 7.17.(c)  Management/Performance Measurement. – The Secretary of Revenue shall follow the existing model for public‑private arrangement oversight and shall establish a measurement process to determine the increased revenue or cost‑savings attributed to the additional public‑private arrangement contracts authorized by this section. To accomplish this, the Secretary shall consult subject matter experts in the Department of Revenue, in other governmental units, and in the private sector, as necessary. At a minimum, the measurement process shall include all of the following:

(1)        Calculation of a revenue baseline against which the increased revenue attributable to the project is measured and a cost‑basis baseline against which the cost‑savings resulting from the project are measured.

(2)        Periodic evaluation to determine whether the baselines need to be modified based on significant measurable changes in the economic environment.

(3)        Monthly calculation of increased revenue and cost‑savings attributable to contracts executed under this section.

"SECTION 7.17.(d) Funding. – Of funds generated from increased revenues or cost‑savings, as compared to the baselines established by subdivision (1) of subsection (c) of this section, in the General Fund, the Highway Fund, and that State portion of the Unauthorized Substance Tax collections of the Special Revenue Fund, the sum of up to a total of sixteen million dollars ($16,000,000) may be authorized by the Office of State Budget and Management to make purchases related to the implementation of the additional public‑private arrangement authorized by this section, including payments for services from non‑State entities.

"SECTION 7.17.(e)  Internal Costs. – For the 2013‑2015 fiscal biennium the Department of Revenue may retain an additional sum of eight million eight hundred seventy‑four thousand three hundred nineteen dollars ($8,874,319) from benefits generated for the General Fund since the beginning of the public‑private partnership described under Section 6A.5(a) of S.L. 2011‑145. The Department may use up to eleven million eight hundred seventy‑four thousand three hundred nineteen dollars ($11,874,319) as payment of internal costs for the fiscal biennium, and such funds are hereby appropriated for this purpose.

"SECTION 7.17.(f)  Expert Counsel Required. – Notwithstanding G.S. 114‑2.3, the Department of Revenue shall engage the services of private counsel with the pertinent information technology and computer law expertise to negotiate and review contracts associated with an additional public‑private arrangement authorized entered into under this section.

"SECTION 7.17.(g) Oversight Committee. – The Oversight Committee established under Section 6A.5(c) of S.L. 2011‑145 shall have the same responsibilities and duties with respect to an additional public‑private arrangement authorized by this section as it does with respect to public‑private arrangements to implement TIMS and the additional Planning and Design Project (PDP) components.

"SECTION 7.17.(h) Reporting. – Beginning August 1, 2013, and quarterly thereafter, the Department of Revenue shall submit detailed written reports 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 of the General Assembly. The report shall include an explanation of all of the following:

(1)        Details of each public‑private contract.

(2)        The benefits from each contract.

(3)        A comprehensive forecast of the benefits of using public‑private agreements to implement TIMS, the additional PDP components, and additional components authorized by this section, including cost‑savings and the acceleration of the project time line.

(4)        Any issues associated with the operation of the public‑private partnership.

"SECTION 7.17.(i)  Information Technology Project Oversight. – In addition to the oversight provided by the Oversight Committee established in Section 6A.5(c) of S.L. 2011‑145, the additional public‑private arrangement Contracts pertaining to TIMS as authorized by this section shall be subject to existing State information technology project oversight laws and statutes, and the project management shall comply with all statutory requirements and other criteria established by the State Chief Information Officer and the Office of State Budget and Management for information technology projects. The State Chief Information Officer and the Office of State Budget and Management shall immediately report any failure to do so to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the House of Representatives and Senate Committees on Appropriations, and the Fiscal Research Division.

…."

SECTION 7.5.(c)  Section 6A.5 of S.L. 2011‑145, as amended by Section 6A.3(j) of S.L. 2012‑142 and Section 7.17(j) of S.L. 2013‑360, reads as rewritten:

"…

"SECTION 6A.5.(c)  There is established within the Department of Revenue the Oversight Committee for reviewing and approving the benefits measurement methodology and calculation process. The Oversight Committee shall review and approve in writing all contracts, including change orders, amendments to contracts, and addendums to contracts, before they are executed under this section. This shall include (i) details of each public‑private contract, (ii) the benefits from each contract, and (iii) a comprehensive forecast of the benefits of using public‑private agreements to implement TIMS and the additional PDP components, including the measurement process established for the Secretary of Revenue. The Oversight Committee shall approve all of the fund transfers for this project. Within five days of entering into a contract, the Department shall provide copies of each contract and all associated information to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the House of Representatives and Senate Committees on Appropriations, and the Fiscal Research Division.

The members of the Committee shall include the following:

(1)        The Director of the Office of State Budget and Management;

(2)        The Secretary of the Department of Revenue;

(3)        The State Chief Information Officer;

(4)        Two persons appointed by the Governor;

(5)        One member of the general public having expertise in information technology appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives; and

(6)        One member of the general public having expertise in economic and revenue forecasting appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate.

The State Budget Director shall serve as chair of the Committee. The Committee shall set its meeting schedule and adopt its rules of operation by majority vote. A majority of the members constitutes a quorum. Vacancies shall be filled by the appointing authority. Administrative support staff shall be provided by the Department of Revenue. Members of the Committee shall receive reimbursements for subsistence and travel expenses as provided by Chapter 138 of the General Statutes. The Committee shall terminate on June 30, 2018.

The Department shall provide copies of the minutes of each meeting and all associated information to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the House of Representatives Appropriations Committee, the Chairs of the Senate Committee on Appropriations/Base Budget, and the Fiscal Research Division.

"SECTION 6A.5.(c1)  The TIMS Oversight Committee created by Section 6A.5(c) of this act shall do all of the following:

(1)        Approve and monitor management performance measures.

(2)        Approve project initiatives.

(3)        Approve project changes.

(4)        Provide project oversight.

(5)        Review funding requirements and project expenditures.

(6)        Provide TIMS project recommendations to the Department of Revenue and the General Assembly.

(7)        Ensure Department of Revenue compliance with all applicable laws.

"SECTION 6A.5.(c2)  Beginning August 1, 2014, and quarterly thereafter, the Department of Revenue shall submit detailed quarterly reports to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the Senate Appropriations Committee on General Government and Information Technology, the Chairs of the House Appropriations Subcommittee on General Government, the Chair of the House Appropriations Subcommittee on Information Technology, and the Fiscal Research Division. At a minimum, the reports shall include all of the following:

(1)        Project status, to include any issues identified by the Enterprise Project Management Office.

(2)        Comparison of project status to the time line, with an explanation of any differences.

(3)        Any changes in project cost.

(4)        Actual expenditures to date.

(5)        Any variances from projected expenditures and the reasons for the variance.

(6)        Any potential funding shortfalls and their impact.

(7)        Any issues identified by the Department of Revenue, with a corrective action plan and a time line for resolving the issues.

(8)        Impact of any issues identified on the project schedule.

(9)        Impact of any issues identified on project cost.

(10)      Any changes to the project scope.

(11)      Any change requests submitted to project vendors and the cost of the changes."

 

GOVERNMENT DATA ANALYTICS CENTER/BUSINESS INTELLIGENCE

SECTION 7.6.(a)  G.S. 143B‑426.38A reads as rewritten:

"§ 143B‑426.38A.  Government Data Analytics Center; State data‑sharing requirements.

(a)        State Government Data Analytics. – The State shall initiate across State agencies, departments, and institutions a data integration and data‑sharing initiative that is not intended to replace transactional systems but is instead intended to leverage the data from those systems for enterprise‑level State business intelligence. For the purposes of this section, the term "business intelligence (BI)" means the process of collecting, organizing, sharing, and analyzing data through integrated data management, reporting, visualization, and advanced analytics to discover patterns and other useful information that will allow policymakers and State officials to make more informed decisions. The term also includes:

(1)        Broad master data management capabilities such as data integration, data quality and enrichment, data governance, and master data management to collect, reference, and categorize information from multiple sources.

(2)        Self‑service query and reporting capabilities to provide timely, relevant, and actionable information to business users delivered through a variety of interfaces, devices, or applications based on their specific roles and responsibilities.

All State agency business intelligence requirements, including any planning or development efforts associated with creating BI capability, shall be implemented through the GDAC. The State Chief Information Officer shall ensure that State agencies use the GDAC for agency business intelligence requirements.

...

(d1)      Appropriations. – Of the funds appropriated to the Information Technology Fund, the sum of three million dollars ($3,000,000) for the 2013‑2014 fiscal year and the sum of four million four hundred seventeen thousand five hundred fifteen dollars ($4,417,515) for the 2014‑2015 fiscal year shall be used to support the GDAC and NCFACTS. Of these funds, the sum of one million four hundred seventeen thousand five hundred fifteen dollars ($1,417,515) shall be used in each fiscal year of the 2013‑2015 biennium for OSC internal costs. For fiscal year 2014‑2015, of the funds generated by GDAC and NCFACTS projects and returned to the General Fund, the sum of up to five million dollars ($5,000,000) is appropriated to fund GDAC and NCFACTS, to include vendor payments. Prioritization for the expenditure of these funds shall be for State costs associated with GDAC first, then vendor costs second. Funds in the 2013‑2015 fiscal year budgets for GDAC and NCFACTS shall be used solely to support the continuation for these priority project areas.

...."

SECTION 7.6.(b)  Of the funds appropriated to the Information Technology Fund, the sum of six million four hundred seventeen thousand five hundred fifteen dollars ($6,417,515) for the 2014‑2015 fiscal year shall be used to support the GDAC and NCFACTS. Of these funds, the sum of one million four hundred seventeen thousand five hundred fifteen dollars ($1,417,515) shall be used in each fiscal year of the 2013‑2015 fiscal biennium for Office of State Controller internal costs. An additional one million one hundred twenty‑nine thousand four hundred eighty‑eight dollars ($1,129,488) for the 2014‑2015 fiscal year shall be used to support the Criminal Justice Law Enforcement Automated Data System.

 

VEHICLE MANAGEMENT

SECTION 7.11.(a)  Section 7.16(e) of S.L. 2013‑360 reads as rewritten:

"SECTION 7.16.(e)  Until July 1, 2015, December 31, 2015, no State or local governmental entity or officer may procure or operate an unmanned aircraft system or disclose personal information about any person acquired through the operation of an unmanned aircraft system unless the State CIO approves an exception specifically granting disclosure, use, or purchase. Any exceptions to the prohibition in this subsection shall be reported immediately to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division. The following definitions apply in this section:

(1)        "Unmanned aircraft" means an aircraft that is operated without the possibility of human intervention from within or on the aircraft.

(2)        "Unmanned aircraft system" means an unmanned aircraft and associated elements, including communication links and components that control the unmanned aircraft that are required for the pilot in command to operate safely and efficiently in the national airspace system."

SECTION 7.11.(b)  If Section 7.16(e) of S.L. 2013‑360 is repealed during the 2014 Session of the 2013 General Assembly, then Section 7.16 of S.L. 2013-360 is amended by adding the following new subsection:

"SECTION 7.16.(g)  Until December 31, 2015, no State or local governmental entity or officer may procure or operate an unmanned aircraft system or disclose personal information about any person acquired through the operation of an unmanned aircraft system unless the State CIO approves an exception specifically granting disclosure, use, or purchase. Any exceptions to the prohibition in this subsection shall be reported immediately to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division. The following definitions apply in this section:

(1)        "Unmanned aircraft" means an aircraft that is operated without the possibility of human intervention from within or on the aircraft.

(2)        "Unmanned aircraft system" means an unmanned aircraft and associated elements, including communication links and components that control the unmanned aircraft that are required for the pilot in command to operate safely and efficiently in the national airspace system."

 

USE OF MOBILE COMMUNICATIONS DEVICES

SECTION 7.12.(a)  G.S. 147‑33.91(a) reads as rewritten:

"(a)       With respect to State agencies, the State Chief Information Officer shall exercise general coordinating authority for all telecommunications and mobile electronic communications matters relating to the internal management and operations of those agencies. In discharging that responsibility, the State Chief Information Officer, in cooperation with affected State agency heads, may:

(14)      Monitor the use of mobile electronic communications devices within State agencies and maintain information on the following:

a.         The total number of devices issued by each agency.

b.         The total cost of mobile devices issued by each agency.

c.         The number and cost of new devices issued.

d.         The contracts used to obtain the devices."

SECTION 7.12.(b)  Section 7.18 of S.L. 2013‑360 is repealed.

 

STATE PORTAL

SECTION 7.13.(a)  Section 7.22 of S.L. 2013‑360 reads as rewritten:

"SECTION 7.22.  The State Chief Information Officer (SCIO) shall develop a plan to implement an electronic portal that makes obtaining information, conducting online transactions, and communicating with State agencies more convenient for members of the public. The SCIO shall report to the Joint Legislative Oversight Committee on Information Technology on the details of the plan prior to implementation. The plan shall contain all of the following:

(1)        A detailed description for development and implementation of the portal, to include a list of anticipated applications to be implemented during the State fiscal years of 2013‑2017.

(2)        A description of how the portal will be implemented, including the use of outside vendors, detailed information on vendor participation, and potential costs.

(3)        Detailed information on the anticipated total cost of ownership of the portal and any applications proposed for implementation during the State fiscal years of 2013‑2017, including the amount of any payments to be made to any vendors supporting the project for each application and the portal as a whole.

(4)        A funding model that limits the costs to the State.

(5)        If outsourced, a detailed, fully executable plan to return portal operations to the State, with associated costs and a detailed analysis that demonstrates that it is more cost‑effective to use a vendor than to develop an application internally.costs.

(6)        A provision requiring that any fees to support the operation of the portal must be authorized by the General Assembly.State Chief Information Officer."

Funding appropriated to the IT Fund for Enterprise Resource Planning (ERP) shall be used by the State Chief Information Officer, in conjunction with the NC Government Efficiency and Reform Initiative (NC GEAR) and the State Controller, to develop a strategic implementation plan for a Statewide Enterprise Resource Planning System. The plan shall be submitted to the Joint Legislative Oversight Committee on Information Technology by January 31, 2015."

 

Information Technology Services/Employees Exempted from state human resources act

SECTION 7.17.  G.S. 126‑5(c1) is amended by adding a new subdivision to read:

"(c1)     Except as to the provisions of Articles 6 and 7 of this Chapter, the provisions of this Chapter shall not apply to:

(31)      Employees of the Office of Information Technology Services hired on or after July 1, 2014."

 

ITS/budget and reporting information technology expenditures

SECTION 7.18.  The Office of the State Chief Information Officer shall complete implementation of a Budget and Reporting Information Technology Expenditures (BRITE) tool. By December 15, 2014, the State Chief Information Officer shall report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on the status of the implementation within the Office of Information Technology Services and the potential for expansion of the BRITE tool to other State agencies.

 

PART VIII. PUBLIC SCHOOLS

 

FUNDS FOR CHILDREN WITH DISABILITIES

SECTION 8.1.  The State Board of Education shall allocate additional funds for children with disabilities on the basis of three thousand seven hundred sixty‑eight dollars and eleven cents ($3,768.11) per child for the 2014‑2015 fiscal 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 its 2014‑2015 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 8.2.  The State Board of Education shall allocate additional funds for academically or intellectually gifted children on the basis of one thousand two hundred thirty‑nine dollars and sixty‑five cents ($1,239.65) per child for the 2014‑2015 fiscal year. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2014‑2015 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit. 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.

 

CERTAIN EDUCATION‑BASED SALARY SUPPLEMENTS

SECTION 8.3.  Section 8.22 of S.L. 2013‑360 reads as rewritten:

"SECTION 8.22.SECTION 8.22.(a)  Notwithstanding Section 35.11 of this act, no only the following teachers or and instructional support personnel, except for certified school nurses and instructional support personnel in positions for which a master's degree is required for licensure, personnel shall be paid on the "M" salary schedule or receive a salary supplement for academic preparation at the six‑year degree level or at the doctoral degree level for the 2014‑2015 school year, unless they were paid on that salary schedule or received that salary supplement prior to the 2014‑2015 school year.year and subsequent school years:

(1)        Certified school nurses and instructional support personnel in positions for which a master's degree is required for licensure.

(2)        Teachers and instructional support personnel who were paid on that salary schedule or received that salary supplement prior to the 2014‑2015 school year.

(3)        Teachers and instructional support personnel who (i) complete a degree at the master's, six‑year, or doctoral degree level for which they completed at least one course prior to July 1, 2013, and (ii) would have qualified for the salary supplement pursuant to State Board of Education policy, TCP‑A‑006, as it was in effect on June 30, 2013.

(4)        Teachers and instructional support personnel who do not qualify under subdivisions (1), (2), and (3) of this subsection but who spend at least seventy percent (70%) of their work time in either of the following:

a.         Classroom instruction related to their graduate academic preparation in their field or subject area within their area of licensure. Most of the teachers' remaining time shall be spent in one or more of the following:

1.         Mentoring teachers.

2.         Performing demonstration lessons for teachers.

3.         Writing curricula.

4.         Developing and leading staff development programs for teachers.

b.         Work within the employee's area of graduate academic preparation.

"SECTION 8.22.(b)  Beginning with the 2014‑2015 fiscal year and subsequent fiscal years thereafter, for teachers who are paid on the "M" salary schedule under subdivision (4) of subsection (a) of this section, determination of whether teachers and instructional support personnel shall be paid on the "M" salary schedule or receive a salary supplement for academic preparation shall take place on an annual basis. Teachers and instructional support personnel may be moved off of the "M" salary schedule or discontinue receiving salary supplements if they are not meeting the requirements of subdivision (4) of subsection (a) of this section in that year.

"SECTION 8.22.(c)  Unless an individual otherwise qualifies under subdivision (2) or (3) of subsection (a) of this section, teachers and instructional support personnel who earn an advanced degree in school administration shall not be paid on the "M" salary schedule or receive a salary supplement for academic preparation unless they serve as an assistant principal or principal."

 

FUNDS FOR SMALL COUNTY SCHOOL ADMINISTRATIVE UNITS

SECTION 8.4.  Section 8.4 of S.L. 2013‑360, as amended by Section 3.11 of S.L. 2013‑363, reads as rewritten:

"SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING

"SECTION 8.4.(d)  Allotment FormulaSchedule for the 2014‑2015 Fiscal Year. – Except as otherwise provided in subsection subsections (e) and (g) of this section, for the 2014‑2015 fiscal year, each eligible county school administrative unit shall receive a dollar allotment equal to the product of the following:according to the following schedule:

(1)        A per student funding factor, equal to the product of the following:

a.         One, minus the local school administrative unit's average daily membership divided by the maximum small school system average daily membership.

b.         The maximum small school system dollars per student.

(2)        The average daily membership of the eligible county school administrative unit.

             Allotted ADM                   Small County Allotment

                   0‑600                                  $ 1,710,000

                601‑1,300                              $ 1,820,000

              1,301‑1,700                             $ 1,548,700

              1,701‑2,000                             $ 1,600,000

              2,001‑2,300                             $ 1,560,000

              2,301‑2,600                             $ 1,470,000

              2,601‑2,800                             $ 1,498,000

              2,801‑3,200                             $ 1,548,000

"SECTION 8.4.(e)  Phase‑Out Provisions for the 2014‑2015 Fiscal Year. – If a local school administrative unit becomes ineligible for funding under the formulaschedule in subsection (d) of this section in the 2014‑2015 fiscal year, funding for that unit shall be phased out over a five‑year period. Funding for such local administrative units shall be reduced in equal increments in each of the five years after the local administrative unit becomes ineligible. Funding shall be eliminated in the fifth fiscal year after the local administrative unit becomes ineligible.

Allotments for eligible local school administrative units shall not be reduced by more than twenty percent (20%) of the amount received in fiscal year 2013‑2014 in any fiscal year.

"SECTION 8.4.(f)  Maximum Allotments for the 2014‑2015 Fiscal Year. – For the 2014‑2015 fiscal year, the maximum small school system dollars per student shall be two thousand ninety‑four dollars ($2,094).

…."

 

BUDGET REDUCTIONS/DEPARTMENT OF PUBLIC INSTRUCTION

SECTION 8.6.  Section 8.6 of S.L. 2013‑360 reads as rewritten:

"SECTION 8.6.(a)  Notwithstanding G.S. 143C‑6‑4, the Department of Public Instruction may, after consultation with the Office of State Budget and Management and the Fiscal Research Division, reorganize, if necessary, to implement the budget reductions set out in this act. for the 2013‑2015 fiscal biennium. Consultation shall occur prior to requesting budgetary and personnel changes through the budget revision process. The Department shall provide a current organization chart in the consultation process and shall report to the Joint Legislative Commission on Governmental Operations on any reorganization.

"SECTION 8.6.(b)  In implementing budget reductions for the 2014‑2015 fiscal year, the Department of Public Instruction shall make no reduction to funding or positions for the North Carolina Center for Advancement of Teaching, the Eastern North Carolina School for the Deaf, the North Carolina School for the Deaf, and the Governor Morehead School and shall make no reduction in funding to any of the following entities:

(1)        Communities in Schools of North Carolina, Inc.

(2)        Teach for America, Inc.

(3)        Beginnings For Parents of Children Who Are Deaf or Hard of Hearing, Inc."

 

CLARIFY CARRYFORWARD FOR READING CAMPS

SECTION 8.7.(a) Section 8.16 of S.L. 2013‑360 reads as rewritten:

"SECTION 8.16. Funds appropriated for the 2013‑2015 fiscal biennium and subsequent fiscal years for summer reading camps as defined in G.S. 115C‑83.3(9) shall not revert at the end of each fiscal year but shall remain available until expended.for expenditure until August 31 of the subsequent fiscal year."

SECTION 8.7.(b)  If House Bill 230, 2013 Regular Session, becomes law, then Section 8.16 of S.L. 2013‑360, as amended by subsection (a) of this section, reads as rewritten:

"SECTION 8.16. Funds appropriated for the 2013‑2015 fiscal biennium and subsequent fiscal years for summer reading camps as defined in G.S. 115C‑83.3(9) shall not revert at the end of each fiscal year but shall remain available for expenditure until August October 31 of the subsequent fiscal year."

SECTION 8.7.(c)  This section becomes effective June 30, 2014.

 

CARRYFORWARD FOR PANIC ALARM GRANTS

SECTION 8.8.(a)  Section 8.37 of S.L. 2013‑360 is amended by adding a new subsection to read:

"SECTION 8.37.(b1)  Grants to local school administrative units shall not revert at the end of the fiscal year but shall remain available for expenditure until the end of the subsequent fiscal year."

SECTION 8.8.(b)  This section becomes effective June 30, 2014.

 

STATE BOARD OF EDUCATION NOTIFICATION TO THE GENERAL ASSEMBLY OF FEDERAL GRANT APPLICATIONS

SECTION 8.9.  G.S. 115C‑12 is amended by adding a new subdivision to read:

"§ 115C‑12.  Powers and duties of the Board generally.

The general supervision and administration of the free public school system shall be vested in the State Board of Education. The State Board of Education shall establish policy for the system of free public schools, subject to laws enacted by the General Assembly. The powers and duties of the State Board of Education are defined as follows:

(42)      To notify the General Assembly of federal grant applications. – The State Board of Education shall provide written notification to the General Assembly in accordance with G.S. 120‑29.5 and to the Fiscal Research Division of its intent to apply for any federal grant prior to submitting the grant application. The notice shall include details about the grant and a brief summary of any anticipated policy implications of accepting the grant."

 

PROPERTY INSURANCE SYSTEM FOR CHARTER SCHOOLS

SECTION 8.10.  G.S. 115C‑533 reads as rewritten:

"§ 115C‑533.  Duty of State Board to operate insurance system.

The State Board of Education shall have the duty to manage and operate a system of insurance for public school property. The State Board may offer a system of property insurance to any charter schools approved pursuant to G.S. 115C‑238.29D."

 

CLARIFY MILITARY SERVICE CREDIT FOR NEWLY HIRED EDUCATORS

SECTION 8.12.  G.S. 115C‑302.3(a) reads as rewritten:

"(a)       The State Board of Education shall establish rules for awarding credit for salary purposes to principals, assistant principals, and teachersteachers, who (i) served in the Armed Forces of the United States and who States; (ii) have retired or who have received an Honorable Discharge. Discharge; and (iii) have not been previously employed by a public school located in North Carolina. The rules shall include the following provisions:

(1)        One full year of experience credit shall be awarded for each year of full‑time relevant nonteaching work experience completed (i) while on active military duty in the Armed Forces of the United States and (ii) after earning a bachelor's degree.

(2)        One full year of experience credit shall be awarded for each two years of full‑time relevant nonteaching work experience completed (i) while on active duty in the Armed Forces of the United States and (ii) before earning a bachelor's degree.

(3)        One full year of experience credit shall be awarded for every two years of full‑time instructional or leadership duties while on active military duty in the Armed Forces of the United States, regardless of academic degree held while in instruction or leadership roles."

 

funds for advanced placement/international baccalaureate courses

SECTION 8.17.  Section 8.27(d) of S.L. 2013‑360 reads as rewritten:

"SECTION 8.27.(d)  Of the funds appropriated to the Department of Public Instruction to implement the requirements of this section, ten million eight hundred thirty‑one thousand one hundred eighty‑four dollars ($10,831,184) for the 2014‑2015 fiscal year shall be used to fund fees for testing in advanced courses and one million five hundred thousand dollars ($1,500,000) for each fiscal year shall be used by the North Carolina Advanced Placement Partnership to carry out its responsibilities as set forth in this section. Funding appropriated for professional development may be used by the State Board of Education to contract with an independent evaluator to assess the implementation and impact of advanced course programs in North Carolina. For the purposes of this section, the term "advanced courses" means an Advanced Placement or International Baccalaureate Diploma Programme course.

If the funds appropriated for the 2014‑2015 fiscal year and subsequent fiscal years are insufficient, the Department of Public Instruction may use other funds within the State Public School Fund for these purposes."

 

JLEOC Study of NCVPS Revenue

SECTION 8.18.(a)  The Joint Legislative Education Oversight Committee shall study the potential generation of revenue by the North Carolina Virtual Public School Program (NCVPS) by selling virtual course seats in under‑subscribed courses to out‑of‑state students, selling training courses to in‑State and out‑of‑state educators, and selling packages of educational materials to out‑of‑state education entities. The Committee shall consider issues related to authorizing NCVPS to expand as a for‑profit online education provider, including intellectual property barriers, the use of public-private partnerships for expansion of marketing outside of the State, potential fiscal benefits to the State, concerns related to allowing NCVPS to enter the private commercial marketplace as an online education provider, and any other issues the Committee deems relevant.

SECTION 8.18.(b)  The Joint Legislative Education Oversight Committee shall report the results of the study required by subsection (a) of this section, including recommendations for any proposed legislative changes, to the General Assembly prior to the convening of the 2015 General Assembly.

 

COMPETITIVE GRANTS TO IMPROVE AFTER‑SCHOOL SERVICES

SECTION 8.19.(a)  Of the funds appropriated by this act for the At‑Risk Student Services Alternative School Allotment for the 2014‑2015 fiscal year, the State Board of Education shall use five million dollars ($5,000,000) for the After‑School Quality Improvement Grant Program administered by the Department of Public Instruction. It is the intent of the General Assembly to appropriate five million dollars ($5,000,000) for this purpose in each year of the 2015‑2017 fiscal biennium. Of the funds appropriated for the program, the Department of Public Instruction may use up to two hundred thousand dollars ($200,000) for each fiscal year to administer the program.

SECTION 8.19.(b)  The purpose of the After‑School Quality Improvement Grant Program is to pilot after‑school learning programs for at‑risk students that raise standards for student academic outcomes by focusing on the following:

(1)        Use of an evidence‑based model with a proven track record of success.

(2)        Inclusion of rigorous, quantitative performance measures to confirm their effectiveness during the grant cycle and at the end‑of‑grant cycle.

(3)        Full integration with State performance measures and student academic goals.

(4)        Expansion for wider use in North Carolina.

(5)        Prioritization of science, technology, engineering, and mathematics (STEM) learning opportunities.

(6)        Expansion of student access to learning activities and academic support that strengthen student engagement and leverage community‑based resources, which may include organizations that provide mentoring services and private-sector employer involvement.

SECTION 8.19.(c)  Local school administrative units and nonprofits working in collaboration with local school administrative units may participate in the program, as set forth in this section, and are eligible to receive two‑year grants of up to five hundred thousand dollars ($500,000) a year, based on the proposed number of students served, with an option for a third year of funding. At least seventy percent (70%) of students served by the program must qualify for free or reduced‑price meals.

Grants shall be matched on the basis of three dollars ($3.00) in grant funds for every one dollar ($1.00) in nongrant funds. Matching funds shall not include other State funds. Matching funds may include in‑kind contributions.

SECTION 8.19.(d)  Grant recipients shall report to the Department of Public Instruction after the first year of funding on the progress of the grant, including alignment with State academic standards, data collection for reporting student progress, and other measures, before receiving funding for the next fiscal year. Grant recipients shall report after the second year of funding on key performance data, including statewide test results, attendance rates, and promotion rates. Grant allocations for the third year shall be based on student performance data.

SECTION 8.19.(e)  The Department of Public Instruction shall provide interim reports on the grant program to the Joint Legislative Education Oversight Committee by September 15, 2015, and September 15, 2016, with a final report on the program by September 15, 2017. The final report shall include the final results of the program and recommendations regarding effective after‑school program models, standards, and performance measures based on student performance and the experience of the grant recipients.

 

Schematic Designs/Emergency Access to Schools

SECTION 8.20.(a)  Section 8.39 of S.L. 2013‑360 is repealed.

SECTION 8.20.(b)  Article 8C of Chapter 115C of the General Statutes is amended by adding new sections to read:

"§ 115C‑105.53.  Schematic diagrams and emergency access to school buildings for local law enforcement agencies.

(a)        Each local school administrative unit shall provide the following to local law enforcement agencies: (i) schematic diagrams, including digital schematic diagrams, and (ii) emergency access to key storage devices such as KNOX® boxes for all school buildings. Local school administrative units shall provide updates of the schematic diagrams to local law enforcement agencies when substantial modifications such as new facilities or modifications to doors and windows are made to school buildings. Local school administrative units shall also be responsible for providing local law enforcement agencies with updated access to school building key storage devices such as KNOX® boxes when changes are made to these boxes or devices.

(b)        The Department of Public Instruction, in consultation with the Department of Public Safety, shall develop standards and guidelines for the preparation and content of schematic diagrams and necessary updates. Local school administrative units may use these standards and guidelines to assist in the preparation of their schematic diagrams.

(c)        Schematic diagrams are not considered a public record as the term "public record" is defined under G.S. 132‑1 and shall not be subject to inspection and examination under G.S. 132‑6.

"§ 115C‑105.54.  Schematic diagrams and emergency response information provided to Division of Emergency Management.

(a)        Each local school administrative unit shall provide the following to the Division of Emergency Management (Division) at the Department of Public Safety: (i) schematic diagrams, including digital schematic diagrams, and (ii) emergency response information requested by the Division for the School Risk Management Plan (SRMP) and the School Emergency Response Plan (SERP). Local school administrative units shall also provide updated schematic diagrams and emergency response information to the Division when such updates are made. The Division shall ensure that the diagrams and emergency response information are securely stored and distributed as provided in the SRMP and SERP to first responders, emergency personnel, and school personnel and approved by the Department of Public Instruction.

(b)        The schematic diagrams and emergency response information are not considered a public record as the term "public record" is defined under G.S. 132‑1 and shall not be subject to inspection and examination under G.S. 132‑6."

SECTION 8.20.(c)  The schematic diagrams referenced in subsection (b) of this section shall be provided to local law enforcement agencies and the Division of Emergency Management at the Department of Public Safety by June 1, 2015.

 

NBPTS Supplement for instructional coaches in Title I Schools

SECTION 8.21.  G.S. 115C‑296.2(b) reads as rewritten:

"(b)      Definitions. – As used in this subsection:

(1)        A "North Carolina public school" is a school operated by a local board of education, the Department of Health and Human Services, the Division of Adult Correction of the Department of Public Safety, the Division of Juvenile Justice of the Department of Public Safety or The University of North Carolina; a school affiliated with The University of North Carolina; or a charter school approved by the State Board of Education.

(2)        A "teacher" is a person who:

a.         Either:

1.         Is certified to teach in North Carolina; or

2.         Holds a certificate or license issued by the State Board of Education that meets the professional license requirement for NBPTS certification;certification.

b.         Is a State‑paid employee of a North Carolina public school;school.

c.         Is paid on the teacher salary schedule; andschedule.

d.         Spends at least seventy percent (70%) of his or her work time:

1.         In classroom instruction, if the employee is employed as a teacher. Most of the teacher's remaining time shall be spent in one or more of the following: mentoring teachers, doing demonstration lessons for teachers, writing curricula, developing and leading staff development programs for teachers; or

2.         In work within the employee's area of certification or licensure, if the employee is employed in an area of NBPTS certification other than direct classroom instruction.instruction; or

3.         As an instructional coach, as classified by the Department of Public Instruction, in a Title I school. As used in this sub‑sub‑subdivision, a Title I school is a school identified under Part A of Title I of the Elementary and Secondary Education Act of 1965, as amended."

 

JLEOC Study diagnostic reading Assessments for Read to Achieve

SECTION 8.22.(a)  The Joint Legislative Education Oversight Committee shall study the formative and diagnostic reading assessments required by the Department of Public Instruction to meet the provisions of the Read to Achieve Program. The study shall examine whether there are additional options for formative and diagnostic reading assessments that would provide local school administrative units with additional flexibility in meeting the requirements of Read to Achieve, and if fewer assessment instruments or data-gathering activities could be used. When considering additional assessments, the Committee shall review the assessments to see if they could be used with the Education Value‑Added Assessment System (EVAAS) in analyzing student growth for the purposes of the teacher evaluation instrument for kindergarten through second grade teachers. The Committee shall also identify other assessments that may be used in analyzing student growth for the purposes of the teacher evaluation instrument for kindergarten through second grade teachers. In identifying additional options for both formative and diagnostic reading assessments, and other assessments for analyzing student growth for the purposes of the teacher evaluation, the Committee shall consider at least the following factors:

(1)        The time required for conducting assessments.

(2)        The level of integration of assessment results with instructional support for teachers and students.

(3)        The timeliness in reporting assessment results to teachers and administrators.

(4)        The ability to provide timely and useful assessment results to parents and guardians.

SECTION 8.22.(b)  The Joint Legislative Education Oversight Committee shall report the results of the study required by subsection (a) of this section to the General Assembly prior to the convening of the 2015 General Assembly.

 

Supply of EMERGENCY EPINEPHRINE AUTO‑INJECTORS ON SCHOOL PROPERTY

SECTION 8.23.(a)  Article 25A of Chapter 115C of the General Statutes is amended by adding a new section to read:

"§ 115C‑375.2A.  School supply of epinephrine auto‑injectors.

(a)        A local board of education shall provide for a supply of emergency epinephrine auto‑injectors on school property and at school‑sponsored events on school grounds for use by trained school personnel to provide emergency medical aid to persons suffering from an anaphylactic reaction. Each school shall store in a secure but easily accessible location a minimum of two epinephrine auto‑injectors. For purposes of this section, "school property" does not include transportation to or from school.

(b)        For the purposes of this section and G.S. 115C‑375.2, "epinephrine auto‑injector" means a disposable drug delivery system with a spring‑activated, concealed needle that is designed for emergency administration of epinephrine to provide rapid, convenient first aid for persons suffering a potentially fatal reaction to anaphylaxis.

(c)        The principal shall designate one or more school personnel, as part of the medical care program under G.S. 115C‑375.1, to receive initial training and annual retraining from a school nurse or qualified representative of the local health department regarding the storage and emergency use of an epinephrine auto‑injector. Notwithstanding any other provision of law to the contrary, the school nurse or other designated school personnel who has received training under this subsection shall obtain a prescription for epinephrine auto‑injectors from a physician, physician assistant, or nurse practitioner of the local health department serving the area in which the local school administrative unit is located.

(d)        The principal shall collaborate with appropriate school personnel to develop an emergency action plan for the use of epinephrine auto‑injectors in an emergency. The plan shall include at least the following components:

(1)        Standards and procedures for the storage and emergency use of epinephrine auto‑injectors by trained school personnel.

(2)        Techniques for recognizing symptoms of anaphylaxis.

(3)        Emergency follow‑up procedures, including calling emergency services and contacting a student's parent and physician.

(4)        Instruction and certification in cardiopulmonary resuscitation.

(e)        A supply of emergency epinephrine auto‑injectors provided in accordance with this section shall not be used as the sole medication supply for students known to have a medical condition requiring the availability or use of an epinephrine auto‑injector. Those students may be authorized to possess and self‑administer their asthma medication on school property under G.S. 115C‑375.2.

(f)         A local board of education, its members, employees, designees, agents, or volunteers, and a physician, physician assistant, or nurse practitioner of the local health department shall not be liable in civil damages to any party for any act authorized by this section or for any omission relating to that act unless that act or omission amounts to gross negligence, wanton conduct, or intentional wrongdoing."

SECTION 8.23.(b)  G.S. 115C‑238.29F(a) reads as rewritten:

"(a)       Health and Safety Standards. – A charter school shall meet the same health and safety requirements required of a local school administrative unit. The Department of Public Instruction shall ensure that charter schools provide parents and guardians with information about meningococcal meningitis and influenza and their vaccines at the beginning of every school year. This information shall include the causes, symptoms, and how meningococcal meningitis and influenza are spread and the places where parents and guardians may obtain additional information and vaccinations for their children.

The Department of Public Instruction shall also ensure that charter schools provide parents and guardians with information about cervical cancer, cervical dysplasia, human papillomavirus, and the vaccines available to prevent these diseases. This information shall be provided at the beginning of the school year to parents of children entering grades five through 12. This information shall include the causes and symptoms of these diseases, how they are transmitted, how they may be prevented by vaccination, including the benefits and possible side effects of vaccination, and the places where parents and guardians may obtain additional information and vaccinations for their children.

The Department of Public Instruction shall also ensure that charter schools provide students in grades seven through 12 with information annually on the preventable risks for preterm birth in subsequent pregnancies, including induced abortion, smoking, alcohol consumption, the use of illicit drugs, and inadequate prenatal care.

The Department of Public Instruction shall also ensure that charter schools provide students in grades nine through 12 with information annually on the manner in which a parent may lawfully abandon a newborn baby with a responsible person, in accordance with G.S. 7B‑500.

The Department of Public Instruction shall also ensure that the guidelines for individual diabetes care plans adopted by the State Board of Education under G.S. 115C‑12(31) are implemented in charter schools in which students with diabetes are enrolled and that charter schools otherwise comply with the provisions of G.S. 115C‑375.3.

The Department of Public Instruction shall ensure that charter schools comply with G.S. 115C‑375.2A. The board of directors of a charter school shall provide the school with a supply of emergency epinephrine auto‑injectors necessary to carry out the provisions of G.S. 115C‑375.2A."

SECTION 8.23.(c)  G.S. 115C‑238.66(7) reads as rewritten:

"(7)      Health and safety. – The board of directors shall require that the regional school meet the same health and safety standards required of a local school administrative unit.

The Department of Public Instruction shall ensure that regional schools comply with G.S. 115C‑375.2A. The board of directors of a regional school shall provide the school with a supply of emergency epinephrine auto‑injectors necessary to carry out the provisions of G.S. 115C‑375.2A."

SECTION 8.23.(d)  By September 1, 2014, the North Carolina Board of Pharmacy, in consultation with the State Board of Education, shall adopt rules addressing the authorization for school personnel to obtain a prescription for epinephrine for emergency health circumstances in public schools in accordance with G.S. 115C‑375.2A, as enacted by this section.

SECTION 8.23.(e)  Subsections (a) through (c) of this section become effective October 1, 2014.

 

PERMIT LOCAL BOARDS OF EDUCATION TO use STATE FUNDS FOR SUPPLEMENTAL SALARIES AND DIFFERENTIAL PAY FOR SCHOOL PERSONNEL

SECTION 8.24.  G.S. 115C‑105.25 reads as rewritten:

"§ 115C‑105.25.  Budget flexibility.

(a)        Consistent with improving student performance, a local board shall provide maximum flexibility to schools in the use of funds to enable the schools to accomplish their goals.

(a1)      Except as otherwise provided in subsection (b) of this section, the State Board of Education shall permit local boards of education to transfer, at the discretion of the local board, any available State funds into an allotment category to provide supplemental salaries and differential pay for school personnel.

…."

 

Opportunity Scholarship Grant Clarifications

SECTION 8.25.(a)  G.S. 115C‑562.2(a) reads as rewritten:

"(a)       The Authority shall make available no later than February 1 annually applications to eligible students for the award of scholarship grants to attend any nonpublic school. Information about scholarship grants and the application process shall be made available on the Authority's Web site. Beginning March 1,March 15, the Authority shall begin awarding scholarship grants according to the following criteria:

(1)        First priority shall be given to eligible students who received a scholarship grant during the previous school year if those students have applied by March 1.

…."

SECTION 8.25.(b)  G.S. 115C‑562.2 is amended by adding a new subsection to read:

"(e)       Scholarship applications and personally identifiable information related to eligible students receiving scholarship grants shall not be a public record under Chapter 132 of the General Statutes. For the purposes of this section, personally identifiable information means any information directly related to a student or members of a student's household, including the name, birthdate, address, social security number, telephone number, e-mail address, financial information, or any other information or identification number that would provide information about a specific student or members of a specific student's household."

SECTION 8.25.(c)  G.S. 115C‑562.3(a) reads as rewritten:

"(a)       The Authority may seek verification of information on any application for scholarship grants from eligible students. The Authority shall select and verify a random sample of no less than six percent (6%) of applications annually.annually, including those with apparent errors on the face of the application. The Authority shall establish rules for the verification process and may use the federal verification requirements process for free and reduced‑price lunch applications as guidance for those rules. If a household fails to cooperate with verification efforts, the Authority shall revoke the award of the scholarship grant to the eligible student."

SECTION 8.25.(d)  G.S. 115C‑562.5 is amended by adding a new subsection to read:

"(c1)     A nonpublic school shall not discriminate with respect to the categories listed in 42 U.S.C. § 2000d, as that statute read on January 1, 2014."

SECTION 8.25.(d1)  G.S. 115C‑562.5(a)(2) reads as rewritten:

"(a)       A nonpublic school that accepts eligible students receiving scholarship grants shall comply with the following:

(2)        ConductProvide to the Authority a criminal background check conducted for the staff member with the highest decision‑making authority, as defined by the bylaws, articles of incorporation, or other governing document, to ensure that person has not been convicted of any crime listed in G.S. 115C‑332."

SECTION 8.25.(e)  G.S. 115C‑562.7(a) is repealed.

SECTION 8.25.(f)  G.S. 115C‑562.7(b) reads as rewritten:

"(b)      The Authority shall report annually, no later than March April 1, to the Joint Legislative Education Oversight Committee on the following:

…."

SECTION 8.25.(g)  Notwithstanding the requirements of G.S. 115C‑562.2, as amended by this section, no applications for the 2014‑2015 school year shall be accepted by the State Education Assistance Authority after February 25, 2014. To the extent the total appropriation for scholarship grants is not awarded prior to the fall semester of the 2014‑2015 school year, the State Education Assistance Authority may reopen applications for award of scholarship grants for the spring semester of the 2014‑2015 school year.

SECTION 8.25.(h)  Notwithstanding the requirements of G.S. 115C‑562.3, as amended by this section, for applications received for the 2014‑2015 school year, the State Education Assistance Authority shall select and verify no less than three percent (3%) of applications, including those with apparent errors on the face of the application.

SECTION 8.25.(i)  Of the funds appropriated to the Board of Governors of The University of North Carolina for the 2014‑2015 fiscal year to award scholarship grants to eligible students in accordance with Section 8.29 of S.L. 2013‑360 and the provisions of this section, any unspent funds in the 2014‑2015 fiscal year for this purpose shall revert to the General Fund on June 30, 2015.

SECTION 8.25.(j)  Subsection (b) of this section becomes effective July 1, 2013. The remainder of this section is effective when it becomes law.

 

injury prevention and return‑to‑work programs

SECTION 8.26.  G.S. 115C‑12 is amended by adding a new subdivision to read:

"(42)    To Ensure that Local Boards of Education Implement Injury Prevention and Return‑to‑Work Programs. – The State Board of Education shall develop policies and procedures to ensure that local boards of education implement and comply with loss prevention and return‑to‑work programs based on models adopted by the State Board. These models shall be designed to reduce the number of injuries resulting in workers' compensation claims and ensure injured employees with workers' compensation claims return to work in accordance with current State Board of Education policy."

 

participation in Investing in Innovation Grants

SECTION 8.27.  Section 8.25(b) of S.L. 2013‑360 reads as rewritten:

"SECTION 8.25.(b)  The federal Investing in Innovation Fund Grant: Validating Early College Strategies for Traditional Comprehensive High Schools awarded to the North Carolina New Schools Project for 2012‑2017 requires students to enroll in a community college course in the 10th grade. Notwithstanding any other provision of law, specified local school administrative units may offer one community college course to participating sophomore (10th grade) students. Participating local school administrative units are Alleghany, Beaufort, Bladen, Hertford, Jones, Madison, Martin, Richmond, Rutherford, Surry, Warren, Wilkes, and Yancey County Schools."

 

Department of Public Instruction Response Time

SECTION 8.28.  Staff at the Department of Public Instruction shall, whenever practicable, respond to requests for information originating from the superintendent of a local school administrative unit, the principal officer of a charter school, or the principal of a regional school, or their designees, within three business days of receipt of the request. Absent extraordinary circumstances, requests for information shall be reasonably and fully answered within 14 business days following an initial response.

 

Read to Achieve Student Portfolios

SECTION 8.29.(a)  If House Bill 230, 2013 Regular Session, becomes law, then G.S. 115C‑83.3(8), as amended by that act, reads as rewritten:

"(8)      "Student reading portfolio" means a compilation of independently produced student work selected by the student's teacher, beginning during the first half of the school year, and signed by the teacher and principal, as an accurate picture of the student's reading ability. proficiency. The student reading portfolio shall include an organized collection of evidence of the student's mastery of the State's reading standards that are assessed by the State‑approved standardized test of reading comprehension administered to third grade students. reading proficiency. A single piece of evidence may be used to show mastery of reading proficiency for up to two standards. For each benchmark, reading standard, there shall be three two examples of student work work, gathered over the course of the school year, demonstrating mastery by a grade of seventy percent (70%) or above.the student's reading proficiency. If a student correctly responds to eighty percent (80%) of the comprehension questions about one reading passage as used as an initial work sample, then that one work sample shall suffice to demonstrate student reading proficiency on the standards covered in that sample. A student reading portfolio shall only be compiled with students when it is determined that administration of a standardized test of reading comprehension would likely not yield positive findings of a student's reading proficiency."

SECTION 8.29.(b)  If House Bill 230, 2013 Regular Session, becomes law, then G.S. 115C‑83.7(b)(4), as amended by that act, reads as rewritten:

"(4)      Students who demonstrate, through a student reading portfolio, reading proficiency appropriate for third grade students. Student reading portfolio and review processes used by local school administrative units shall be approved by the State Board of Education. A local school administrative unit implementing the student reading portfolio process established by the State Board of Education shall limit the use of this portfolio process only to a student for whom it is appropriate as determined by the student’s principal, after consulting with the teacher and the student’s parents, and shall discontinue administration of the portfolio passages whenever a student is not demonstrating reading proficiency."

SECTION 8.29.(c)  If House Bill 230, 2013 Regular Session, becomes law, then G.S. 115C‑83.3(2), as amended by that act, reads as rewritten:

"(2)      "Alternative assessment" means a valid and reliable standardized assessment of reading comprehension, approved by the State Board of Education, that is not the same test as the State‑approved standardized test of reading comprehension administered to third grade students. The State Board of Education shall (i) provide several valid and reliable alternative assessments to local school administrative units upon request, (ii) approve valid and reliable alternative assessments submitted by local school administrative units, and (iii) establish achievement level ranges for each approved alternative assessment. The State Board of Education shall annually review all alternative assessments to ensure ongoing relevance, validity, and reliability. The State Board of Education shall complete the review and approval process as provided in this subdivision by September 15 of each year."

SECTION 8.29.(d)  If House Bill 230, 2013 Regular Session, becomes law, then G.S. 115C‑83.9(d), as amended by that act, reads as rewritten:

"(d)      Teachers and principals shall provide opportunities opportunities, including, but not limited to, information sessions, to discuss with parents and guardians the notifications listed in this section. Principals shall provide at least one information session within the first 30 days of school regarding the requirement for reading proficiency for third grade students."

 

School Performance Scores and Grades

SECTION 8.30.  If House Bill 230, 2013 Regular Session, becomes law, then G.S. 115C‑83.15(d), as amended by that act, reads as rewritten:

"(d)      Calculation of the School Performance Scores and Grades. – The State Board of Education shall use EVAAS to calculate the school performance score by adding the school achievement score, as provided in subsection (b) of this section, and the school growth score, as provided in subsection (c) of this section, earned by a school. The school achievement score shall account for eighty percent (80%),twenty percent (20%), and the school growth score shall account for twenty percent (20%)eighty percent (80%) of the total sum. If a school has met expected growth and inclusion of the school's growth score reduces the school's performance score and grade, a school may choose to use the school achievement score solely to calculate the performance score and grade. For all schools, the total school performance score shall be converted to a 100‑point scale and used to determine a school performance grade based on the following scale:

(1)        A school performance score of at least 90 85 is equivalent to an overall school performance grade of A.

(2)        A school performance score of at least 80 70 is equivalent to an overall school performance grade of B.

(3)        A school performance score of at least 70 55 is equivalent to an overall school performance grade of C.

(4)        A school performance score of at least 60 40 is equivalent to an overall school performance grade of D.

(5)        A school performance score of less than 60 40 points is equivalent to an overall school performance grade of F."

 

Rural Charter School Development Pilot program

SECTION 8.31.(a)  Parents for Educational Freedom in North Carolina, Inc., (PEFNC) shall use up to three hundred thousand dollars ($300,000) in nonrecurring funds made available to it under this act for the 2014‑2015 fiscal year to provide grant funding to participants for the development of up to 12 charter schools in counties with currently less than a sixty‑five percent (65%) average passage rate on end‑of‑grade and end‑of‑course tests. State funds shall only be used to provide grants to participants in the pilot program and shall not be used by PEFNC for its overhead costs in administering the program.

SECTION 8.31.(b)  PEFNC shall match State funds available to it under this act on the basis of one dollar ($1.00) in grant funds for every one dollar ($1.00) in nongrant funds. Matching funds shall not include other State funds. Matching funds may include in‑kind contributions.

SECTION 8.31.(c)  PEFNC shall require that grant recipients participating in the pilot program meet at least all of the following conditions:

(1)        The recipient is seeking approval by the State Board of Education to operate a charter school or is in the planning year required before beginning operations.

(2)        The charter school shall be located in a county with less than a sixty‑five percent (65%) average passage rate on end‑of‑grade and end‑of‑course tests.

(3)        The recipient charter school shall be subject to audit oversight by the State Auditor.

SECTION 8.31.(d)  PEFNC may provide grants of up to one hundred thousand dollars ($100,000) to recipients for an initial planning year.

SECTION 8.31.(e)  By March 15, 2015, and annually thereafter, PEFNC shall submit to the Joint Legislative Education Oversight Committee a report on the progress of the pilot program, an accounting of expenditures, and the status of grant recipients.

 

Annual Distribution of School Bullying/CYBER‑BULLYING Policies

SECTION 8.32.(a)  G.S. 115C‑407.16(d) reads as rewritten:

"(d)      At the beginning of each school year, the principal shall provide the local school administrative unit's policy prohibiting bullying and harassing behavior, including cyber‑bullying, to staff, students, and parents as defined in G.S. 115C-390.1(b)(8). Notice of the local policy shall appear in any school unit publication that sets forth the comprehensive rules, procedures, and standards of conduct for schools within the school unit and in any student and school employee handbook."

SECTION 8.32.(b)  This section applies beginning with the 2014‑2015 school year.

 

clarify school counselors work duties

SECTION 8.33.(a)  G.S. 115C‑316.1(b) reads as rewritten:

"(b)      During the remainder of their work time, counselors shall spend adequate time on school counseling program support activities that consist of professional development; consultation, collaboration, and training; and program management and operations. School counseling program support activities do not include the coordination of standardized testing. However, During the remainder of their work time, school counselors may assist other staff with the coordination of standardized testing."

SECTION 8.33.(b)  Section 8.35(b) of S.L. 2013‑360 is repealed.

 

Funds for Charter School Closure

SECTION 8.34.(a)  G.S. 115C‑238.29F(i) is repealed.

SECTION 8.34.(b)  Article 16 of Chapter 115C of the General Statutes is amended by adding a new section to read:

"§ 115C‑238.29L.  Dissolution of a charter school.

(a)        Funds Reserved for Closure Proceedings. – A charter school shall maintain, for the purposes of ensuring payment of expenses related to closure proceedings in the event of a voluntary or involuntary dissolution of the charter school, one or more of the options set forth in this subsection. The minimum aggregate value of the options chosen by the charter school shall be fifty thousand dollars ($50,000). The State Board of Education shall not allocate any funds under G.S. 115C‑238.29H to a charter school unless the school has provided documentation to the State Board that the charter school has met the requirements of this subsection. Permissible options to satisfy the requirements of this subsection include one or more of the following:

(1)        An escrow account.

(2)        A letter of credit.

(3)        A bond.

(4)        A deed of trust.

(b)        Distribution of Assets. – Upon dissolution of a charter school, all net assets of the charter school purchased with public funds shall be deemed the property of the local school administrative unit in which the charter school is located."

SECTION 8.34.(c)  G.S. 115C‑238.29G(a1) reads as rewritten:

"(a1)     The State Board shall adopt criteria for adequate performance by a charter school and shall identify charter schools with inadequate performance. The criteria shall include a requirement that a charter school which demonstrates no growth in student performance and has annual performance composites below sixty percent (60%) in any two years in a three‑year period is inadequate.

(2)        If a charter school is inadequate and has had a charter for more than five years, the State Board is authorized to terminate, not renew, or seek applicants to assume the charter through a competitive bid process established by the State Board. The State Board shall develop rules on the assumption of a charter by a new entity that include all aspects of the operations of the charter school, including the status of the employees. Public assets would transfer to the new entity and not revert to the local school administrative unit in which the charter school is located pursuant to G.S. 115C‑238.29F(i).G.S. 115C‑238.29L(b)."

SECTION 8.34.(d)  This section applies to charter schools that submit applications for an initial charter or the renewal of a charter to the State Board of Education on or after the effective date of this act.

 

Virtual Charter School Pilot Program

SECTION 8.35.(a)  Notwithstanding G.S. 115C‑238.29D or any other provision of law to the contrary, the State Board of Education shall establish a pilot program to authorize the operation of two virtual charter schools serving students in kindergarten through twelfth grade. The State Board shall establish an application process to allow student enrollment in the selected virtual charter schools beginning with the 2015‑2016 school year. A virtual charter school participating in the pilot may serve any grade span of students in kindergarten through twelfth grade. The pilot program shall continue for a period of four school years and shall end with the 2018‑2019 school year.

SECTION 8.35.(b)  The virtual charter schools participating in the pilot program authorized by this section shall be subject to the statutes and rules applicable to charter schools pursuant to Part 6A of Article 16 of Chapter 115C of the General Statutes, except as follows:

(1)        The maximum student enrollment in any participating school shall be no greater than 1,500 in its first year of operation and may increase by twenty percent (20%) for each participating school up to a maximum student enrollment of 2,592 in the fourth year of the pilot. The State Board of Education may waive this maximum student enrollment threshold, beginning in the fourth year of the school's operation, if the State Board determines that doing so would be in the best interest of North Carolina students.

(2)        The maximum overall ratio of teachers to students for kindergarten through eighth grade shall be 1:50, and for ninth through twelfth grade shall be 1:150.

(3)        A student who regularly fails to participate in courses may be withdrawn from enrollment pursuant to procedures adopted by the virtual charter school. The procedures adopted by the virtual charter school shall ensure that (i) fair notice is provided to the parent and student and (ii) an opportunity is provided, prior to withdrawal of the student by the school, for the student and parent to demonstrate that failure to participate in courses is due to a lawful absence recognized under Part I of Article 26 of Chapter 115C of the General Statutes and any applicable rules adopted by the State Board of Education.

SECTION 8.35.(c)  In addition to the operating requirements applicable to a virtual charter school participating in the pilot program pursuant to Part 6A of Article 16 of Chapter 115C of the General Statutes, the following requirements shall apply to a participating virtual charter school:

(1)        The school shall maintain an administrative office within North Carolina. In addition, the school shall maintain at least one testing center or meeting place within each of the eight State Board of Education districts where the participating students reside, to allow educators and administrators from the school to meet students and parents.

(2)        If the school contracts with a third party for the provision of administrative staff, such staff fulfilling the equivalent positions of superintendent, principal, or business officer shall be residents of North Carolina.

(3)        All teaching staff shall carry the appropriate State certification to instruct any course and shall receive professional development in virtual instruction pursuant to the school's application to the State Board of Education to participate in the pilot program within 30 days of the employee's date of hire. At least ninety percent (90%) of the teaching staff shall reside within North Carolina.

(4)        The school shall have a withdrawal rate below twenty‑five percent (25%). A student enrolled in a school with the intent expressed prior to enrollment of only being enrolled for a finite period of time within the school year shall not be counted in the measured withdrawal rate. The school shall keep a written record of a student's stated intent for finite enrollment. A count of school attendance shall be taken at least once during each semester for funding purposes.

(5)        The school shall ensure that each student is assigned a learning coach. The learning coach shall provide (i) daily support and supervision of students, (ii) ensure student participation in online lessons, and (iii) coordinate teacher‑led instructional sessions and State assessments.

SECTION 8.35.(d)  Notwithstanding G.S. 115C‑238.29B and G.S. 115C‑238.29D, a participating virtual charter school that is successful in meeting the requirements of this section and the applicable requirements of Part 6A of Article 16 of Chapter 115C of the General Statutes during the period of the pilot program shall be eligible to be approved by the State Board of Education, at its discretion, without additional application requirements.

SECTION 8.35.(e)  The State Board of Education shall provide State funding to a virtual charter school participating in the pilot program as provided in G.S. 115C‑238.29H(a) and G.S. 115C‑238.29H(a1). The amount allocated pursuant to G.S. 115C‑238.29H(a)(1) shall not, however, include the allocation for low‑wealth counties supplemental funding and the allocation for small county supplemental funding. Virtual charter schools participating in the pilot program shall also be subject to the requirements in G.S. 115C‑238.29H(b) through G.S. 115C‑238.29H(d). The amount of local funds provided to participating schools pursuant to G.S. 115C-238.29H(b) shall be the lesser of seven hundred ninety dollars ($790.00) per pupil or the amount computed in accordance with G.S. 115C‑238.29H(b).

SECTION 8.35.(f)  A participating virtual charter school that does not comply with the provisions of this section may result in deferment or termination of enrollment expansion, or termination of a pilot. Schools are subject to presentation of data to the State Board of Education at the call of the Chair of the State Board with a minimum of 21 days' notice.

SECTION 8.35.(g)  The State Board shall report on the initial implementation of the pilot program to the Joint Legislative Education Oversight Committee by November 15, 2016, and on findings from three years of operation of the pilot program by November 15, 2018. At a minimum, the report shall include the following:

(1)        The number of students who have enrolled in courses offered by the schools.

(2)        The number and type of courses offered by the schools.

(3)        The withdrawal rate of students after enrollment.

(4)        Student performance and accountability data.

(5)        Information on the implementation, administration, and funding for the pilot program.

(6)        Recommendations on the modification, continuation, and potential expansion of the program.

 

clarify regional school cihs applications

SECTION 8.36.(a)  G.S. 115C‑238.50A(1a) reads as rewritten:

"(1a)     Cooperative innovative high school. – A high school approved by the State Board of Education and the applicable governing Board that meets the following criteria:

a.         It has no more than 100 students per grade level. This criterion shall not apply to a regional school as defined in G.S. 115C‑238.61.

b.         It partners with an institution of higher education to enable students to concurrently obtain a high school diploma and begin or complete an associate degree program, master a certificate or vocational program, or earn up to two years of college credit within five years.

c.         It is located on the campus of the partner institution of higher education, unless the governing Board or the local board of trustees for a private North Carolina college specifically waives the requirement through adoption of a formal resolution. This criterion shall not apply to a regional school established as provided in Part 10 of this Article."

SECTION 8.36.(b)  Notwithstanding the requirements of Part 9 of Article 16 of Chapter 115C of the General Statutes, for the 2014‑2015 school year, the Northeast Regional School of Biotechnology and Agriscience shall be designated as a cooperative innovative high school. To maintain the designation as a cooperative innovative high school beyond the 2014‑2015 school year, the board of directors of the Northeast Regional School of Biotechnology and Agriscience shall apply with a local board of trustees for approval as a cooperative innovative high school program as provided under Part 9 of Article 16 of Chapter 115C of the General Statutes.

 

PART IX. Compensation of Public School Employees

 

TEACHER SALARY SCHEDULE

SECTION 9.1.(a)  The following monthly salary schedules shall apply for the 2014‑2015 fiscal year to certified personnel of the public schools who are classified as teachers. The schedules contain 37 steps, with each step corresponding to one year of teaching experience.

2014‑2015 Monthly Salary Schedule

"A" Teachers

Years of Experience                        "A" Teachers                      NBPTS Certification

0‑2                                         3,300                                         ‑

3‑5                                         3,300                                      3,696

6                                             3,318                                      3,716

7                                             3,383                                      3,789

8                                             3,490                                      3,909

9                                             3,601                                      4,033

10                                            3,708                                      4,153

11                                            3,812                                      4,269

12                                            3,899                                      4,367

13                                            3,949                                      4,423

14                                            4,000                                      4,480

15                                            4,052                                      4,538

16                                            4,104                                      4,596

17                                            4,156                                      4,655

18                                            4,211                                      4,716

19                                            4,266                                      4,778

20                                            4,322                                      4,841

21                                            4,380                                      4,906

22                                            4,438                                      4,971

23                                            4,500                                      5,040

24                                            4,561                                      5,108

25                                            4,622                                      5,177

26                                            4,686                                      5,248

27                                            4,750                                      5,320

28                                            4,819                                      5,397

29                                            4,886                                      5,472

30                                            4,962                                      5,557

31                                            5,041                                      5,646

32                                            5,087                                      5,697

33                                            5,135                                      5,751

34                                            5,183                                      5,805

35                                            5,249                                      5,879

36+                                          5,318                                      5,956

2014‑2015 Monthly Salary Schedule

"M" Teachers

Years of Experience                        "M" Teachers                      NBPTS Certification

0‑2                                         3,630                                         ‑

3‑5                                         3,630                                      4,066

6                                             3,650                                      4,088

7                                             3,721                                      4,168

8                                             3,839                                      4,300

9                                             3,961                                      4,436

10                                            4,079                                      4,568

11                                            4,193                                      4,696

12                                            4,289                                      4,804

13                                            4,344                                      4,865

14                                            4,400                                      4,928

15                                            4,457                                      4,992

16                                            4,514                                      5,056

17                                            4,572                                      5,121

18                                            4,632                                      5,188

19                                            4,693                                      5,256

20                                            4,754                                      5,324

21                                            4,818                                      5,396

22                                            4,882                                      5,468

23                                            4,950                                      5,544

24                                            5,017                                      5,619

25                                            5,084                                      5,694

26                                            5,155                                      5,774

27                                            5,225                                      5,852

28                                            5,301                                      5,937

29                                            5,375                                      6,020

30                                            5,458                                      6,113

31                                            5,545                                      6,210

32                                            5,596                                      6,268

33                                            5,649                                      6,327

34                                            5,701                                      6,385

35                                            5,774                                      6,467

36+                                          5,850                                      6,552

SECTION 9.1.(b)  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 9.1.(c)  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 9.1.(d)  The first step of the salary schedule for school psychologists shall be equivalent to Step 10, corresponding to 10 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 9.1.(e)  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 9.1.(f)  Certified school nurses who are employed in the public schools as nurses shall be paid on the "M" salary schedule.

SECTION 9.1.(g)  As used in this section, the term "teacher" shall also include instructional support personnel.

SECTION 9.1.(h)  Section 35.11 of S.L. 2013‑360 is repealed.

 

REPEAL OF SESSION LAWS REPEALING CAREER STATUS

SECTION 9.4.(a)  Section 9.6(a) of S.L. 2013‑360 is repealed.  

SECTION 9.4.(b)  Section 9.6(f) of S.L. 2013‑360 reads as rewritten:

"SECTION 9.6.(f)  G.S. 115C‑325(c)(1) through (c)(3) and G.S. 115‑325(c)(5) and (c)(6) are repealed effective August 1, 2013. Individuals who have not received career status prior to the 2013‑2014 school year shall not be granted career status during the 2013‑2014 school year. All teachers who have not been granted career status prior to the 2013‑2014 school year shall be offered only one‑year contracts, except for qualifying teachers offered a four‑year contract as provided in subsection (g) of this section, until the 2018‑2019 school year."

SECTION 9.4.(c)  Section 9.6(i) of S.L. 2013‑360 is repealed.

SECTION 9.4.(d)  Section 9.6(j) of S.L. 2013‑360 reads as rewritten:

"SECTION 9.6.(j)  Subsection (b) of this section becomes effective July 1, 2014. G.S. 115C‑325.1 through G.S. 115C‑325.13, as enacted by this section, shall apply to all teachers teachers currently employed as of July 1, 2014, on one‑ or four‑year contractsa contract or who are employed on contract after beginning July 1, 2014. G.S. 115C‑325.1 through G.S. 115C‑325.13, as enacted by this section, shall apply to all teachers employed by local boards of education or the State on or after July 1, 2018."

SECTION 9.4.(e)  Section 9.6(k) of S.L. 2013‑360 reads as rewritten:

"SECTION 9.6.(k)  Subsections (c) and (d) of this section become effective July 1, 2014, and apply to all employees employed by a local board of education as of that date on orand employees hired or reemployed on or after that date."

SECTION 9.4.(f)  Subsections (o) through (t) and (v) through (x) of Section 9.7 of S.L. 2013‑360 are repealed.

SECTION 9.4.(g)  Subsection 9.7(y) of S.L. 2013‑360 reads as rewritten:

"SECTION 9.7.(y)  Subsection (u) of this section becomes effective August 1, 2013. Subsections (a) through (n) of this section become effective July 1, 2014. Subsections (o) through (t) and (v) through (x) become effective June 30, 2018."

 

SYSTEM OF EMPLOYMENT FOR TEACHERS WITH CAREER STATUS

SECTION 9.6.(a)  G.S. 115C‑325 reads as rewritten:

"§ 115C‑325.  System of employment for public school teachers.

(a)        Definition of Terms. – As used in this section unless the context requires otherwise:

(1)        Repealed by Session Laws 1997‑221, s. 13(a).

(1a)      "Career employee" as used in this section means:includes all of the following:

a.         An employee who has obtained career status with that local board as a teacher as provided in G.S. 115C‑325(c);prior to August 1, 2013.

b.         An employee who has obtained career status with that local board in an administrative position as provided in G.S. 115C‑325(d)(2);G.S. 115C‑325(d)(2).

c.         A probationary teacher during the term of the contract as provided in G.S. 115C‑325(m); and

d.         A school administrator during the term of a school administrator contract as provided in G.S. 115C‑287.1(c).

(1b)      "Career school administrator" means a school administrator who has obtained career status in an administrative position as provided in G.S. 115C‑325(d)(2).on or before June 30, 1997.

(1c)      "Career teacher" means a teacher who has obtained career status as provided in G.S. 115C‑325(c).with that local board of education prior to August 1, 2013.

(1d)      Repealed by Session Laws 2011‑348, s. 1, effective July 1, 2011, and applicable to persons recommended for dismissal or demotion on or after that date.

(2)        Repealed by Session Laws 1997, c. 221, s. 13(a).

(3)        "Day" means calendar day. In computing any period of time, Rule 6 of the North Carolina Rules of Civil Procedure shall apply.

(4)        "Demote" means to reduce the salary of a person who is classified or paid by the State Board of Education as a classroom teacher or as a school administrator. The word "demote" does not include: (i) a suspension without pay pursuant to G.S. 115C‑325(f)(1); (ii) the elimination or reduction of bonus payments, including merit‑based supplements, or a systemwide modification in the amount of any applicable local supplement; or (iii) any reduction in salary that results from the elimination of a special duty, such as the duty of an athletic coach or a choral director.

(4a)      "Disciplinary suspension" means a final decision to suspend a teacher or school administrator without pay for no more than 60 days under G.S. 115C‑325(f)(2).

(4b)      "Exchange teacher" means a nonimmigrant alien teacher participating in an exchange visitor program designated by the United States Department of State pursuant to 22 C.F.R. Part 62 or by the United States Department of Homeland Security pursuant to 8 C.F.R. Part 214.2(q).

(4c)      "Hearing officer" means a person selected under G.S. 115C‑325(h)(7).

(5)        "Probationary teacher" means a licensed person, other than a superintendent, associate superintendent, or assistant superintendent, who has not obtained career‑teacher status and whose major responsibility is to teach or to supervise teaching.

(5a)      [Expired.]

(5b)      "School administrator" means a principal, assistant principal, supervisor, or director whose major function includes the direct or indirect supervision of teaching or any other part of the instructional program as provided in G.S. 115C‑287.1(a)(3).

(6)        "Teacher" means a person who holds at least a current, not provisional or expired, Class A license or a regular, not provisional or expired, vocational license issued by the State Board of Education; whose major responsibility is to teach or directly supervises teaching or who is classified by the State Board of Education or is paid either as a classroom teacher or instructional support personnel; and who is employed to fill a full‑time, permanent position.position; and who is a career teacher.

(7)        (See note) Redesignated.

(8)        "Year" for purposes of computing time as a probationary teacher shall be not less than 120 workdays performed as a probationary teacher in a full‑time permanent position in a school year. Workdays performed pending the outcome of a criminal history check as provided in G.S. 115C‑332 are included in computing time as a probationary teacher.

(c)       (1)        Election of a Teacher to Career Status. – Except as otherwise provided in subdivision (3) of this subsection, when a teacher has been employed by a North Carolina public school system for four consecutive years, the board, near the end of the fourth year, shall vote upon whether to grant the teacher career status. The teacher has a right to notice and hearing prior to the board's vote as provided in G.S. 115C‑325(m)(3) and G.S. 115C‑325(m)(4). The board shall give the teacher written notice of that decision by June 15 or such later date as provided in G.S. 115C‑325(m)(7). If a majority of the board votes to grant career status to the teacher, and if it has notified the teacher of the decision, it may not rescind that action but must proceed under the provisions of this section for the demotion or dismissal of a teacher if it decides to terminate the teacher's employment. If a majority of the board votes against granting career status, the teacher shall not teach beyond the current school term. If the board fails to vote on granting career status, the teacher shall be entitled to an additional month's pay for every 30 days or portion thereof after June 16 or such later date as provided in G.S. 115C‑325(m)(7) if a majority of the board belatedly votes against granting career status.

(2)        Employment of a Career Teacher. – A teacher who has obtained career status in any North Carolina public school system need not serve another probationary period of more than one year. The board may grant career status immediately upon employing the teacher, or after the first year of employment. The teacher has a right to notice and hearing prior to the board's vote as provided in G.S. 115C‑325(m)(3) and G.S. 115C‑325(m)(4). The board shall give the teacher written notice of that decision by June 15 or such later date as provided in G.S. 115C‑325(m)(7). If a majority of the board votes against granting career status, the teacher shall not teach beyond the current term. If after one year of employment, the board fails to vote on the issue of granting career status, the teacher shall be entitled to one additional month's pay for every 30 days or portion thereof beyond June 16 or such later date as provided in G.S. 115C‑325(m)(7) if a majority of the board belatedly voted against granting career status.

(2a)      Notice of Teachers Eligible to Achieve Career Status. – At least 30 days prior to any board action granting career status, the superintendent shall submit to the board a list of the names of all teachers who are eligible to achieve career status. Notwithstanding any other provision of law, the list shall be a public record under Chapter 132 of the General Statutes.

(3)        Ineligible for No Continuation of Career Status. – No employee of a local board of education except a teacher as defined by G.S. 115C‑325(a)(6) is eligible to obtain career status or shall continue in a career status as a teacher if he or she no longer performs the responsibilities of a teacher as defined in G.S. 115C‑325(a)(6). No person who is employed as a school administrator who did not acquire career status as a school administrator by June 30, 1997, shall have career status as an administrator. Further, no director or assistant principal is eligible to obtain career status as a school administrator unless he or she has already been conferred that status by the local board of education.

(4)        Leave of Absence. – A career teacher who has been granted a leave of absence by a board shall maintain his or her career status if he the teacher returns to his the teaching position at the end of the authorized leave.

(5)        Consecutive Years of Service. –

a.         If a probationary teacher in a full‑time permanent position does not work for at least 120 workdays in a school year because the teacher is on sick leave, disability leave, or both, that school year shall not be deemed to constitute (i) a consecutive year of service for the teacher or (ii) a break in the continuity in consecutive years of service for the teacher.

b.         If a probationary teacher in a full‑time permanent position is nonrenewed because of a decrease in the number of positions due to decreased funding, decreased enrollment, or a district reorganization, and is subsequently rehired by the same school system within three years, the intervening years when the teacher was not employed by the local school administrative unit shall not be deemed to constitute (i) a consecutive year of service for the teacher or (ii) a break in the continuity of years of service. However, if at the time of the teacher's nonrenewal for the reasons described in this subsection, the teacher was eligible for career status after being employed four consecutive years pursuant to G.S. 115C‑325(c)(1), or one year pursuant to G.S. 115C‑325(c)(2), and the board subsequently rehires the teacher within three years, the teacher will be eligible for a career status decision after one additional year of employment. Unless the superintendent unilaterally grants a teacher the benefit set forth in this subsection pursuant to a policy adopted by the board of education for this purpose, the teacher is entitled to such benefit only if the teacher notifies the head of human resources for the local school administrative unit in writing within 60 calendar days after the first day of employment upon being rehired that the teacher was nonrenewed because of a decrease in the number of positions triggered by decreased funding, decreased enrollment, or a district reorganization, and therefore the teacher's nonrenewal did not constitute a break in service for purposes of determining eligibility for career status. The local school administrative unit shall notify the teacher of the 60‑day deadline as described herein in the employment application, contract, or in some other method reasonably calculated to provide the teacher actual notice within 30 calendar days after the first day of employment for the rehired teacher. The burden is on the teacher to submit information establishing that the teacher was nonrenewed because of a decrease in the number of positions triggered by decreased funding, decreased enrollment, or a district reorganization. If the local school administrative unit fails to provide notice to the teacher within this 30‑day period, then the teacher's obligation to notify the local school administrative unit within 60 days does not commence until such time that the teacher is notified of the 60‑day deadline.

The superintendent or designee will inform the teacher on whether the teacher qualifies for the benefit of this subsection within a reasonable period of time after receiving the information submitted by the teacher. This decision is final and the teacher has no right to a hearing or appeal except that the teacher may petition the board in writing within 10 calendar days after receiving the decision of the superintendent or designee, and the board or board panel shall review the matter on the record and provide the teacher a written decision. Notwithstanding any other provision of law, no appeal to court or otherwise is permitted in regard to the benefits provided under this subsection. This subsection creates no private right of action or basis for any liability on the part of the school system, nor does it create any reemployment rights for a nonrenewed probationary teacher.

The provisions of this subsection also shall apply to a probationary teacher in a full‑time permanent position who resigns effective the end of the school year in good standing after receiving documentation that the teacher's position may be eliminated because of a decrease in the number of positions triggered by decreased funding, decreased enrollment, or a district reorganization, and is subsequently rehired by the same school system.

(6)        Status of Exchange Teachers. – Exchange teachers shall not be eligible to obtain career status. However, for purposes of determining eligibility to receive employment benefits under this Chapter, including personal leave, annual vacation leave, and sick leave, an exchange teacher shall be considered a permanent teacher if employed with the expectation of at least six full consecutive monthly pay periods of employment and if employed at least 20 hours per week.

(d)        Career Teachers and Career School Administrators.

(1)        A career teacher or career school administrator shall not be subjected to the requirement of annual appointment nor shall he or she be dismissed, demoted, or employed on a part‑time basis without his or her consent except as provided in subsection (e).

(2)       a.         The provisions of this subdivision do not apply to a person who is ineligible for career status as provided by G.S. 115C‑325(c)(3).

b.         Repealed by Session Laws 1997, c. 221, s. 13(a).

c.         Subject to G.S. 115C‑287.1, when a teacher has performed the duties of supervisor or principal for three consecutive years, the board, near the end of the third year, shall vote upon his employment for the next school year. The board shall give him written notice of that decision by June 1 of his third year of employment as a supervisor or principal. If a majority of the board votes to reemploy the teacher as a principal or supervisor, and it has notified him of that decision, it may not rescind that action but must proceed under the provisions of this section. If a majority of the board votes not to reemploy the teacher as a principal or supervisor, he shall retain career status as a teacher if that status was attained prior to assuming the duties of supervisor or principal. A supervisor or principal who has not held that position for three years and whose contract will not be renewed for the next school year shall be notified by June 1 and shall retain career status as a teacher if that status was attained prior to assuming the duties of supervisor or principal.

A year, for purposes of computing time as a probationary principal or supervisor, shall not be less than 145 workdays performed as a full‑time, permanent principal or supervisor in a contract year.

A principal or supervisor who has obtained career status in that position in any North Carolina public school system may be required by the board of education in another school system to serve an additional three‑year probationary period in that position before being eligible for career status. However, he may, at the option of the board of education, be granted career status immediately or after serving a probationary period of one or two additional years. A principal or supervisor with career status who resigns and within five years is reemployed by the same school system need not serve another probationary period in that position of more than two years and may, at the option of the board, be reemployed immediately as a career principal or supervisor or be given career status after only one year. In any event, if he is reemployed for a third consecutive year, he shall automatically become a career principal or supervisor.

(e)        Grounds for Dismissal or Demotion of a Career Employee.

(3)        Inadequate Performance. – In determining whether the professional performance of a career employee is adequate, consideration shall be given to regular and special evaluation reports prepared in accordance with the published policy of the employing local school administrative unit and to any published standards of performance which shall have been adopted by the board. Failure to notify a career employee of an inadequacy or deficiency in performance shall be conclusive evidence of satisfactory performance. Inadequate performance for a teacher shall mean (i) the failure to perform at a proficient level on any standard of the evaluation instrument or (ii) otherwise performing in a manner that is below standard. However, for a probationary teacher, a performance rating below proficient may or may not be deemed adequate at that stage of development by a superintendent or designee. For a career teacher, a performance rating below proficient shall constitute inadequate performance unless the principal noted on the instrument that the teacher is making adequate progress toward proficiency given the circumstances.

(m)       Probationary Teacher.

(1)        The board of any local school administrative unit may not discharge a probationary teacher during the school year except for the reasons for and by the procedures by which a career employee may be dismissed as set forth in subsections (e), (f), (f1), and (h) to (j3) above.

(2)        The board, upon recommendation of the superintendent, may refuse to renew the contract of any probationary teacher or to reemploy any teacher who is not under contract for any cause it deems sufficient: Provided, however, that the cause may not be arbitrary, capricious, discriminatory or for personal or political reasons.

(3)        The superintendent shall provide written notice to a probationary teacher no later than May 15 of the superintendent's intent to recommend nonrenewal and the teacher's right, within 10 days of receipt of the superintendent's recommendation, to (i) request and receive written notice of the reasons for the superintendent's recommendation for nonrenewal and the information that the superintendent may share with the board to support the recommendation for nonrenewal; and (ii) request a hearing for those teachers eligible for a hearing under G.S. 115C‑325(m)(4). The failure to file a timely request within the 10 days shall result in a waiver of the right to this information and any right to a hearing. If a teacher files a timely request, the superintendent shall provide the requested information and arrange for a hearing, if allowed, and the teacher shall be permitted to submit supplemental information to the superintendent and board prior to the board making a decision or holding a hearing as provided in this section. The board shall adopt a policy to provide for the orderly exchange of information prior to the board's decision on the superintendent's recommendation for nonrenewal.

(4)        If the probationary teacher is eligible for career status pursuant to G.S. 115C‑325(c)(1) and (c)(2) and the superintendent recommends not to give the probationary teacher career status, the probationary teacher has the right to a hearing before the board unless the reason is a justifiable board‑ or superintendent‑approved decrease in the number of positions due to district reorganization, decreased enrollment, or decreased funding.

(5)        For probationary contracts that are not in the final year before the probationary teacher is eligible for career status, the probationary teacher shall have the right to petition the local board of education for a hearing, and the local board may grant a hearing regarding the superintendent's recommendation for nonrenewal. The local board of education shall notify the probationary teacher making the petition of its decision whether to grant a hearing.

(6)        Any hearing held according to this subsection shall be pursuant to the provisions of G.S. 115C‑45(c).

(7)        The board shall notify a probationary teacher whose contract will not be renewed for the next school year of its decision by June 15; provided, however, if a teacher submits a request for information or a hearing, the board shall provide the nonrenewal notification by July 1 or such later date upon the written consent of the superintendent and teacher.

(n)        Appeal. – Any career employee who has been dismissed or demoted under G.S. 115C‑325(e)(2), or under G.S. 115C‑325(j2), or who has been suspended without pay under G.S. 115C‑325(a)(4a), or any school administrator whose contract is not renewed in accordance with G.S. 115C‑287.1, or any probationary teacher whose contract is not renewed under G.S. 115C‑325(m)(2) shall have the right to appeal from the decision of the board to the superior court for the superior court district or set of districts as defined in G.S. 7A‑41.1 in which the career employee is employed. This appeal shall be filed within a period of 30 days after notification of the decision of the board. The cost of preparing the transcript shall be determined under G.S. 115C‑325(j2)(8) or G.S. 115C‑325(j3)(10). A career employee who has been demoted or dismissed, or a school administrator whose contract is not renewed, who has not requested a hearing before the board of education pursuant to this section shall not be entitled to judicial review of the board's action.

(o)        Resignation. –

(2)        A teacher, career or probationary, career teacher who is not recommended for dismissal should not resign without the consent of the superintendent unless he or she has given at least 30 days' notice. If a teacher who is not recommended for dismissal does resign without giving at least 30 days' notice, the board may request that the State Board of Education revoke the teacher's license for the remainder of that school year. A copy of the request shall be placed in the teacher's personnel file.

(p)        Section Applicable to Certain Institutions. – Notwithstanding any law or regulation to the contrary, this section shall apply to all persons who are employed as career teachers in teaching and related educational classes in the schools and institutions of the Departments of Health and Human Services and Public Instruction and the Divisions of Juvenile Justice and Adult Correction of the Department of Public Safety regardless of the age of the students.

(p1)      Procedure for Dismissal of School Administrators and Teachers Employed in Low‑Performing Residential Schools. –

(1)        Notwithstanding any other provision of this section or any other law, this This subdivision shall govern the dismissal by the Secretary of Health and Human Services of teachers, principals, assistant principals, directors, supervisors, and other licensed personnel who are career employees and are assigned to a residential school that the State Board has identified as low‑performing and to which the State Board has assigned an assistance team under Part 3A of Article 3 of Chapter 143B of the General Statutes. The Secretary shall dismiss a teacher, principal, assistant principal, director, supervisor, or other licensed personnel when the Secretary receives two consecutive evaluations that include written findings and recommendations regarding that person's inadequate performance from the assistance team. These findings and recommendations shall be substantial evidence of the inadequate performance of the teacher or school administrator.

      The Secretary may dismiss a teacher, principal, assistant principal, director, supervisor, or other licensed personnel when:

a.         The Secretary determines that the school has failed to make satisfactory improvement after the State Board assigned an assistance team to that school under Part 3A of Article 3 of Chapter 143B of the General Statutes; and

b.         That assistance team makes the recommendation to dismiss the teacher, principal, assistant principal, director, supervisor, or other licensed personnel for one or more grounds established in G.S. 115C‑325(e)(1) for dismissal or demotion of a career employee.

Within 30 days of any dismissal under this subdivision, a teacher, principal, assistant principal, director, supervisor, or other licensed personnel may request a hearing before a panel of three members designated by the Secretary. The Secretary shall adopt procedures to ensure that due process rights are afforded to persons recommended for dismissal under this subdivision. Decisions of the panel may be appealed on the record to the Secretary, with further right of judicial review under Chapter 150B of the General Statutes.

(q)        Procedure for Dismissal of School Administrators and Teachers Employed in Low‑Performing Schools. –

(1)        Notwithstanding any other provision of this section or any other law, this subdivision governs the State Board's dismissal of principals assigned to low‑performing schools to which the Board has assigned an assistance team:

a.         The State Board through its designee may, at any time, recommend the dismissal of any principal who is assigned to a low‑performing school to which an assistance team has been assigned. The State Board through its designee shall recommend the dismissal of any principal when the Board receives from the assistance team assigned to that principal's school two consecutive evaluations that include written findings and recommendations regarding the principal's inadequate performance.

b.         If the State Board through its designee recommends the dismissal of a principal under this subdivision, the principal shall be suspended with pay pending a hearing before a panel of three members of the State Board. The purpose of this hearing, which shall be held within 60 days after the principal is suspended, is to determine whether the principal shall be dismissed.

c.         The panel shall order the dismissal of the principal if it determines from available information, including the findings of the assistance team, that the low performance of the school is due to the principal's inadequate performance.

d.         The panel may order the dismissal of the principal if (i) it determines that the school has not made satisfactory improvement after the State Board assigned an assistance team to that school; and (ii) the assistance team makes the recommendation to dismiss the principal for one or more grounds established in G.S. 115C‑325(e)(1) for dismissal or demotion of a career employee.

e.         If the State Board or its designee recommends the dismissal of a principal before the assistance team assigned to the principal's school has evaluated that principal, the panel may order the dismissal of the principal if the panel determines from other available information that the low performance of the school is due to the principal's inadequate performance.

f.          In all hearings under this subdivision, the burden of proof is on the principal to establish that the factors leading to the school's low performance were not due to the principal's inadequate performance. In all hearings under sub‑subdivision d. of this subdivision, the burden of proof is on the State Board to establish that the school failed to make satisfactory improvement after an assistance team was assigned to the school and to establish one or more of the grounds established for dismissal or demotion of a career employee under G.S. 115C‑325(e)(1).

g.         In all hearings under this subdivision, two consecutive evaluations that include written findings and recommendations regarding that person's inadequate performance from the assistance team are substantial evidence of the inadequate performance of the principal.

h.         The State Board shall adopt procedures to ensure that due process rights are afforded to principals under this subdivision. Decisions of the panel may be appealed on the record to the State Board, with further right of judicial review under Chapter 150B of the General Statutes.

(2)        Notwithstanding any other provision of this section or any other law, this subdivision shall govern the State Board's dismissal of teachers, assistant principals, directors, and supervisors who are career employees assigned to schools that the State Board has identified as low‑performing and to which the State Board has assigned an assistance team under Article 8B of this Chapter. The State Board shall dismiss a teacher, assistant principal, director, or supervisor when the State Board receives two consecutive evaluations that include written findings and recommendations regarding that person's inadequate performance from the assistance team. These findings and recommendations shall be substantial evidence of the inadequate performance of the teacher or school administrator.

      The State Board may dismiss a teacher, assistant principal, director, or supervisor when:

a.         The State Board determines that the school has failed to make satisfactory improvement after the State Board assigned an assistance team to that school under G.S. 115C‑105.38; and

b.         That assistance team makes the recommendation to dismiss the teacher, assistant principal, director, or supervisor for one or more grounds established in G.S. 115C‑325(e)(1) for dismissal or demotion of a career teacher.

A teacher, assistant principal, director, or supervisor may request a hearing before a panel of three members of the State Board within 30 days of any dismissal under this subdivision. The State Board shall adopt procedures to ensure that due process rights are afforded to persons recommended for dismissal under this subdivision. Decisions of the panel may be appealed on the record to the State Board, with further right of judicial review under Chapter 150B of the General Statutes.

(3)        The State Board of Education or a local board may terminate the contract of a school administrator dismissed under this subsection. Nothing in this subsection shall prevent a local board from refusing to renew the contract of any person employed in a school identified as low‑performing under G.S. 115C‑105.37.

(4)        Neither party to a school administrator contract is entitled to damages under this subsection.

(5)        The State Board shall have the right to subpoena witnesses and documents on behalf of any party to the proceedings under this subsection."

SECTION 9.6.(b)  G.S. 115C‑287.1 is amended by adding a new subsection to read:

"(a1)     Notwithstanding subsection (a) of this section, school administrators who are serving in a principal or supervisor position as of July 1, 2014, and who had achieved career status on or before June 30, 1997, shall be employed pursuant to G.S. 115C‑325. A school administrator shall cease to be employed pursuant to G.S. 115C‑325 if the school administrator is dismissed or demoted or if the school administrator voluntarily relinquishes career status through promotion, resignation, or otherwise."

 

Clarifying changes for teacher contracts

SECTION 9.7.(a)  Part 3A of Article 22 of Chapter 115C of the General Statutes, consisting of G.S. 115C‑326.5, is recodified as Part 3B of Article 22 of Chapter 115C of the General Statutes. G.S. 115C‑325.1 through G.S. 115C‑325.13 are recodified as Part 3A of Article 22 of Chapter 115C of the General Statutes, to be entitled "Teacher Employment Contracts."

SECTION 9.7.(b)  G.S. 115C‑325.1 reads as rewritten:

"§ 115C‑325.1.  Definitions.

As used in this Part, the following definitions apply:

(1)        "Day" means calendar day. In computing any period of time, Rule 6 of the North Carolina Rules of Civil Procedure shall apply.

(2)        "Demote" means to reduce the salary of a person who is classified or paid by the State Board of Education as a classroom teacher or as a school administrator during the timeterm of the contract. The word "demote" does not include (i) a suspension without pay pursuant to G.S. 115C‑325.5(a); (ii) the elimination or reduction of bonus payments, including merit‑based supplements or a systemwide modification in the amount of any applicable local supplement; (iii) any reduction in salary that results from the elimination of a special duty, such as the duty of an athletic coach or a choral director; or (iv) any reduction of pay as compared to a prior term of contract.

(3)        "Disciplinary suspension" means a final decision to suspend a teacher or school administrator without pay for no more than 60 days under G.S. 115C‑325.5(b).

(4)        "Residential school" means a school operated by the Department of Health and Human Services that provides residential services to students pursuant to Part 3A of Article 3 of Chapter 143B of the General Statutes or a school operated pursuant to Article 9C of Chapter 115C of the General Statutes.

(5)        "School administrator" means a principal, assistant principal, supervisor, or director whose major function includes the direct or indirect supervision of teaching or any other part of the instructional program, as provided in G.S. 115C‑287.1(a)(3).

(6)        "Teacher" means a person meeting each of the following requirements:

a.         Who holds at least one of the following licenses issued by the State Board of Education:

1.         A current standard professional educator's license.

2.         A current lateral entry teaching license.

3.         A regular, not expired, vocational license.

b.         Whose major responsibility is to teach or directly supervise teaching or who is classified by the State Board of Education or is paid either as a classroom teacher or instructional support personnel.

c.         Who is employed to fill a full‑time, permanent position.

d.         Who is not a career teacher as defined in G.S. 115C‑325(a)(1c).

(7)        "Year" means a calendar year beginning July 1 and ending June 30.means, for purposes of computing time of employment as a teacher, no less than 120 workdays performed as a teacher in a full‑time, permanent position in a school year. Workdays performed pending the outcome of a criminal history check as provided in G.S. 115C‑332 are included in computing time as a teacher."

SECTION 9.7.(c)  G.S. 115C‑325.10 reads as rewritten:

"§ 115C‑325.10.  Application to certain institutions.

Notwithstanding any law or regulation to the contrary, this Part shall apply to all persons employed in teaching and related educational classes in the schools and institutions of the Departments of Health and Human Services and Public Instruction and the Divisions of Juvenile Justice and Adult Correction of the Department of Public Safety,Safety who are not career teachers as defined in G.S. 115C‑325(a)(1c), regardless of the age of the students."

SECTION 9.7.(d)  A teacher who entered into a four‑year contract no later than June 30, 2014, pursuant to Section 9.6(g) of S.L. 2013‑360, may elect to retain that contract under its terms or to waive that contract.

If the teacher was a career teacher as of the date the contract was accepted and waives the contract under this subsection, the teacher shall be employed pursuant to G.S. 115C‑325, as amended by this act, and shall not receive a pay raise as provided for in Section 9.6(h) of S.L. 2013‑360.

Teachers who elect to retain the four‑year contract shall (i) voluntarily relinquish career status and any claim to career status, (ii) be employed in accordance with G.S. 115C‑325.1 through G.S. 115C‑325.13, and (iii) receive a pay raise of five hundred dollars ($500.00) for the first year, one thousand dollars ($1,000) for the second year, one thousand five hundred dollars ($1,500) for the third year, and two thousand dollars ($2,000) for the fourth year of the four‑year contract. These pay raises shall be a part of the employee's base salary.

SECTION 9.7.(e)  The Department of Public Instruction shall use any funds available to it for the 2014‑2015 fiscal year, and in subsequent fiscal years, to provide pay raises for any teachers who elect to retain their four‑year contracts in accordance with subsection (d) of this section.

 

CONFORMING CHANGES

SECTION 9.8.(a)  G.S. 115C‑105.26(b)(2) reads as rewritten:

"(2)      State rules and policies, except those pertaining to public school State salary schedules and employee benefits for school employees, the instructional program that must be offered under the Basic Education Program, the system of employment for public school teachers and administrators set out in G.S. 115C‑287.1 and in Part 3 and Part 3A of Article 22 of this Chapter, health and safety codes, compulsory attendance, the minimum lengths of the school day and year, and the Uniform Education Reporting System."

SECTION 9.8.(b)  G.S. 115C‑105.37B(a)(2) reads as rewritten:

"(2)      Restart model, in which the State Board of Education would authorize the local board of education to operate the school with the same exemptions from statutes and rules as a charter school authorized under Part 6A of Article 16 of this Chapter, or under the management of an educational management organization that has been selected through a rigorous review process. A school operated under this subdivision remains under the control of the local board of education, and employees assigned to the school are employees of the local school administrative unit with the protections provided by Part 3 or Part 3A of Article 22 of this Chapter."

SECTION 9.8.(c)  G.S. 115C‑276(l) reads as rewritten:

"(l)        To Maintain Personnel Files and to Participate in Firing and Demoting of Staff. – The superintendent shall maintain in his or her office a personnel file for each teacher that contains complaints, commendations, or suggestions for correction or improvement about the teacher and shall participate in the firing and demoting of staff, as provided in Part 3 and Part 3A of Article 22 of this Chapter."

SECTION 9.8.(d)  G.S. 115C‑325.6(b) reads as rewritten:

"(b)      Notice of Recommendation. – Before recommending to a board the dismissal or demotion of a teacher, the superintendent shall give written notice to the teacher by certified mail or personal delivery of the superintendent's intention to make such recommendation and shall set forth as part of the superintendent's recommendation the grounds upon which he or she believes such dismissal or demotion is justified. The superintendent also shall meet with the teacher and provide written notice of the charges against the teacher, an explanation of the basis for the charges, and an opportunity to respond if the teacher has not done so under G.S. 115C‑325.5(a). The notice shall include a statement to the effect that the teacher, within 14 days after the date of receipt of the notice, may request a hearing before the board on the superintendent's recommendation. A copy of Part 3 Part 3A of Article 22 of Chapter 115C of the General Statutes shall also be sent to the teacher."

SECTION 9.8.(e)  G.S. 115C‑335(b) reads as rewritten:

"(b)      Training. – The State Board, in collaboration with the Board of Governors of The University of North Carolina, shall develop programs designed to train principals and superintendents in the proper administration of the employee evaluations developed by the State Board. The Board of Governors shall use the professional development programs for public school employees that are under its authority to make this training available to all principals and superintendents at locations that are geographically convenient to local school administrative units. The programs shall include methods to determine whether an employee's performance has improved student learning, the development and implementation of appropriate professional growth and mandatory improvement plans, the process for contract nonrenewal, and the dismissal process under Part 3 and Part 3A of Article 22 of this Chapter. The Board of Governors shall ensure that the subject matter of the training programs is incorporated into the masters in school administration programs offered by the constituent institutions. The State Board, in collaboration with the Board of Governors, also shall develop in‑service programs for licensed public school employees that may be included in a mandatory improvement plan created under G.S. 115C‑333(b) or G.S. 115C‑333.1(b). The Board of Governors shall use the professional development programs for public school employees that are under its authority to make this training available at locations that are geographically convenient to local school administrative units."

 

SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE

SECTION 9.11.(a)  The following base salary schedule for school‑based administrators shall apply only to principals and assistant principals. This base salary schedule shall apply for the 2014‑2015 fiscal year commencing July 1, 2014.

 

2014‑2015 Principal and Assistant Principal Salary Schedules

Classification

Years of            Assistant                Prin I               Prin II           Prin III            Prin IV

Experience          Principal                (0‑10)             (11‑21)         (22‑32)           (33‑43)

0‑9                  $4,001                     ‑                       ‑                    ‑                     ‑

10                  $4,120                     ‑                       ‑                    ‑                     ‑

11                  $4,235                     ‑                       ‑                    ‑                     ‑

12                  $4,332                     ‑                       ‑                    ‑                     ‑

13                  $4,387                $4,387                  ‑                    ‑                     ‑

14                  $4,444                $4,444                  ‑                    ‑                     ‑

15                  $4,502                $4,502             $4,559               ‑                     ‑

16                  $4,559                $4,559             $4,618               ‑                     ‑

17                  $4,618                $4,618             $4,678          $4,740                ‑

18                  $4,678                $4,678             $4,740          $4,802            $4,866

19                  $4,740                $4,740             $4,802          $4,866            $4,931

20                  $4,802                $4,802             $4,866          $4,931            $5,000

21                  $4,866                $4,866             $4,931          $5,000            $5,067

22                  $4,931                $4,931             $5,000          $5,067            $5,135

23                  $5,000                $5,000             $5,067          $5,135            $5,207

24                  $5,067                $5,067             $5,135          $5,207            $5,277

25                  $5,135                $5,135             $5,207          $5,277            $5,354

26                  $5,207                $5,207             $5,277          $5,354            $5,429

27                  $5,277                $5,277             $5,354          $5,429            $5,513

28                  $5,354                $5,354             $5,429          $5,513            $5,600

29                  $5,429                $5,429             $5,513          $5,600            $5,652

30                  $5,513                $5,513             $5,600          $5,652            $5,705

31                  $5,600                $5,600             $5,652          $5,705            $5,758

32                  $5,652                $5,652             $5,705          $5,758            $5,832

33                  $5,705                $5,705             $5,758          $5,832            $5,909

34                  $5,758                $5,758             $5,832          $5,909            $6,027

35                  $5,832                $5,832             $5,909          $6,027            $6,148

36                  $5,909                $5,909             $6,027          $6,148            $6,271

37                      ‑                     $6,027             $6,148          $6,271            $6,396

38                      ‑                          ‑                  $6,271          $6,396            $6,524

39                      ‑                          ‑                  $6,396          $6,524            $6,654

40                      ‑                          ‑                       ‑               $6,654            $6,787

41                      ‑                          ‑                       ‑               $6,787            $6,923

42                      ‑                          ‑                       ‑                    ‑                $7,061

2014‑2015 Principal and Assistant Principal Salary Schedules

Classification

Years of             Prin V                 Prin VI             Prin VII          Prin VIII

Experience          (44‑54)               (55‑65)           (66‑100)          (101+)

0‑19                $5,000                     ‑                       ‑                     ‑

20                  $5,067                     ‑                       ‑                     ‑

21                  $5,135                $5,207                  ‑                     ‑

22                  $5,207                $5,277             $5,429                 ‑

23                  $5,277                $5,354             $5,513            $5,600

24                  $5,354                $5,429             $5,600            $5,652

25                  $5,429                $5,513             $5,652            $5,705

26                  $5,513                $5,600             $5,705            $5,758

27                  $5,600                $5,652             $5,758            $5,832

28                  $5,652                $5,705             $5,832            $5,909

29                  $5,705                $5,758             $5,909            $6,027

30                  $5,758                $5,832             $6,027            $6,148

31                  $5,832                $5,909             $6,148            $6,271

32                  $5,909                $6,027             $6,271            $6,396

33                  $6,027                $6,148             $6,396            $6,524

34                  $6,148                $6,271             $6,524            $6,654

35                  $6,271                $6,396             $6,654            $6,787

36                  $6,396                $6,524             $6,787            $6,923

37                  $6,524                $6,654             $6,923            $7,061

38                  $6,654                $6,787             $7,061            $7,202

39                  $6,787                $6,923             $7,202            $7,346

40                  $6,923                $7,061             $7,346            $7,493

41                  $7,061                $7,202             $7,493            $7,643

42                  $7,202                $7,346             $7,643            $7,796

43                  $7,346                $7,493             $7,796            $7,952

44                       ‑                     $7,643             $7,952            $8,111

45                       ‑                     $7,796             $8,111            $8,273

46+                     ‑                          ‑                  $8,273            $8,438

SECTION 9.11.(b)  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:

Classification                                Number of Teachers 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 9.11.(c)  A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certified employee of the public schools and an additional step for every three years of experience serving as a principal on or before June 30, 2009. 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 9.11.(d)  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 9.11.(e)  Longevity pay for principals and assistant principals shall be as provided for State employees under the North Carolina Human Resources Act.

SECTION 9.11.(f)  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 9.11.(g)  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. 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 9.11.(h)  During the 2013‑2015 fiscal biennium, 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.

 

CENTRAL OFFICE SALARIES

SECTION 9.12.  Section 35.13 of S.L. 2013‑360 reads as rewritten:

"SECTION 35.13.(a)  The monthly salary ranges that follow, which apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers, shall remain unchanged for the 2013‑2015 fiscal biennium, beginning July 1, 2013.be increased by one thousand dollars ($1,000) annually as follows:

School Administrator I                           $3,349$3,432              $6,281$6,364

School Administrator II                          $3,550$3,633              $6,662$6,745

School Administrator III                        $3,769$3,852              $7,068$7,151

School Administrator IV                        $3,920$4,003              $7,349$7,432

School Administrator V                         $4,078$4,161              $7,647$7,730

School Administrator VI                        $4,326$4,409              $8,109$8,192

School Administrator VII                       $4,500$4,583              $8,436$8,519

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 35.13.(b)  The monthly salary ranges that follow, which apply to public school superintendents, shall remain unchanged for the 2013‑2015 fiscal biennium, beginning July 1, 2013.be increased beginning July 1, 2014, as follows:

Superintendent I                                    $4,777$4,860                $8,949$9,032

Superintendent II                                   $5,071$5,154                $9,490$9,573

Superintendent III                                  $5,380$5,463            $10,067$10,150

Superintendent IV                                  $5,710$5,793            $10,679$10,762

Superintendent V                                   $6,060$6,143            $11,330$11,413

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 35.13.(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 35.13.(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 35.13.(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 35.13.(f)  The annual salaries of all permanent, full‑time personnel paid from the Central Office Allotment shall remain unchanged for the 2013‑2015 fiscal biennium.be increased by one thousand dollars ($1,000)."

 

NONCERTIFIED PERSONNEL SALARIES

SECTION 9.13.  Section 35.14 of S.L. 2013‑360 reads as rewritten:

"SECTION 35.14.  The annual salary for permanent, full‑time and part‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be remain unchanged for the 2013‑2015 fiscal biennium.increased by one thousand dollars ($1,000). Part‑time, noncertified public school employees shall receive the increase authorized by this section on a prorated and equitable basis."

 

BONUS FOR CERTIFIED PERSONNEL AT THE TOP OF THEIR SALARY SCHEDULES

SECTION 9.14.(a)  Effective July 1, 2014, any permanent personnel employed on July 1, 2014, and paid at the top of the principal and assistant principal salary schedule applicable to them for the 2013‑2014 school year shall receive a one‑time bonus, payable monthly, equivalent to two percent (2%).

SECTION 9.14.(b)  Effective July 1, 2014, any permanent certified personnel employed on July 1, 2014, and paid at the top teacher salary schedule applicable to them for the 2013‑2014 school year shall receive a one‑time bonus, payable monthly, equivalent to two percent (2%).

 

career pathways pilot program

SECTION 9.15.(a)  Pilot.The State Board of Education shall establish a three‑year career pathways program pilot, as provided in this section, for selected local school administrative units to develop a career pathways program to provide for, in addition to base salary and other applicable local supplements, differentiated pay for classroom teachers based on a teacher's demonstrated effectiveness and additional responsibilities in advanced roles. For the purposes of this section, a classroom teacher is a teacher who works in the classroom providing instruction and who is not instructional support personnel.

SECTION 9.15.(b)  Request for Proposal Requirements.No later than September 15, 2014, the State Board shall develop a Request for Proposal (RFP) for local boards of education to participate in the pilot. As part of the RFP, the State Board of Education shall establish the duties that are associated with advanced roles for classroom teachers. Local boards of education shall submit RFPs for consideration no later than January 1, 2015. The RFP shall require local boards of education to include in their proposals a career pathway plan that meets, at a minimum, the following criteria:

(1)        Career pathway teacher eligibility and duties. ‑

a.         Enable eligible classroom teachers to progress within their careers and become career pathway teachers by doing any of the following:

1.         Assuming advanced roles that include accountability for student growth across a team of teachers.

2.         Becoming leaders of teams of two or more highly effective teachers and teachers of record for all students served by a teaching team.

b.         Provide information in a form readily accessible to both teachers and the public on the criteria and procedures for selection as a career pathway teacher.

c.         Require a classroom teacher to be rated as highly effective on the North Carolina Teacher Evaluation instrument to be eligible to be a career pathway teacher. A highly effective classroom teacher is a teacher who receives, on the North Carolina Teacher Evaluation instrument, a rating of at least accomplished on each of the teacher evaluation standards and who exceeds expected student growth based on three years of teacher evaluation data as calculated by the State Board of Education.

d.         Increase the amount of time during the school day for a career pathway teacher to plan, collaborate, and participate in on‑the‑job development or leadership of others.

e.         Establish equally stringent eligibility requirements for a career pathway teacher to remain in an advanced role as those required to initially attain that role.

f.          Establish a procedure for determining whether a career pathway teacher is successfully performing the additional duties associated with the career pathway.

g.         Ensure that career pathway teachers may opt out of the career pathways plan by voluntarily relinquishing additional duties associated with the career pathway. Voluntary relinquishment of duties associated with the career pathway shall not be considered a demotion under Part 3 or Part 3A of Article 22 of Chapter 115C of the General Statutes.

(2)        Career pathway salary bonuses. ‑

a.         Pay career pathway salary supplements of at least ten percent (10%) of the State teacher salary schedule to career pathway teachers who assume advanced roles.

b.         Pay career pathway salary supplements of at least twenty‑five percent (25%) of the State teacher salary schedule to career pathway teachers who lead teams of two or more other teachers and are the teachers of record for all students served by the teaching team.

c.         Require that career pathway salary supplements be paid as a bonus or supplement to the teacher's regular salary and not be included in the average salary calculation used for budgeting State allotments.

d.         Require that a career pathway teacher who (i) fails to maintain a rating of highly effective or (ii) is not successfully performing the additional duties associated with the career pathway shall be paid only the salary applicable to him or her on the State salary schedule and any other local supplements that would otherwise apply to the teacher's compensation.

e.         Require that a teacher who opts out of the career pathways plan shall be paid only the salary applicable to him or her on the State salary schedule and any other local supplements that would otherwise apply to the teacher's compensation.

(3)        Career pathways plan funding. – Achieves financial sustainability for career pathways salary supplements, as provided in subdivision (2) of this subsection, by reallocating other funds, including local, private, State, or federal funds.

(4)        System goals. ‑

a.         Develop measures for determining how the career pathways plan shall do at least the following:

1.         Improve the quality of classroom instruction.

2.         Increase the attractiveness of teaching.

3.         Encourage the recognition, impact, and retention of high‑quality teachers.

b.         Increase the percentage of students in the local school administrative unit with a highly effective teacher as their teacher of record in at least English Language Arts, math, social studies, and science to a minimum of seventy‑five percent (75%) of students in that subject by the third year of implementation through the career pathways program.

SECTION 9.15.(c)  Selection of Pilot Units. – By March 15, 2015, the State Board of Education shall review the RFPs submitted by local boards of education in accordance with subsection (b) of this section and shall select for the first cohort of the pilot program eight local school administrative units that meet the following criteria:

(1)        Two school districts with an average daily membership (ADM) equal to or less than 4,000.

(2)        Two school districts with an ADM of 4,001 to 10,000.

(3)        Two school districts with an ADM of 10,001 to 30,000.

(4)        Two school districts with an ADM of 30,001 or more.

SECTION 9.15.(d)  Pilot Implementation.The local school administrative units selected for the pilot shall implement their approved career pathways plans beginning with the 2015‑2016 school year and ending with the 2017‑2018 school year. The local boards of education for each approved pilot local school administrative unit shall report annually no later than August 15 following each school year of the pilot to the State Board of Education on the following:

(1)        The methodology for measurement and outcomes determined by the board for how the career pathways plan has accomplished the following:

a.         Improved the quality of classroom instruction.

b.         Increased the attractiveness of teaching.

c.         Encouraged the recognition, impact, and retention of high‑quality teachers.

(2)        The percentage of students with a highly effective teacher as their teacher of record for English Language Arts, math, social studies, and science.

SECTION 9.15.(e)  Second Cohort of Pilot.It is the intent of the General Assembly, subject to the availability of funds, that the State Board of Education shall select a second cohort of eight local school administrative units using the process and requirements set forth in this section to begin a career pathways program pilot in the 2016‑2017 school year.

SECTION 9.15.(f)  Pilot Evaluation. – The State Board of Education shall report annually beginning October 15, 2015, until the conclusion of all the pilots, including a second cohort as described in subsection (e) of this section, on all aspects of the implementation and evaluation of the pilot career pathways plans to the offices of the President Pro Tempore of the Senate and the Speaker of the House of Representatives, the Senate Appropriations/Base Budget Committee, the House Committee on Appropriations, the Senate Appropriations Committee on Education/Higher Education, the House Appropriations Subcommittee on Education, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee.

SECTION 9.15.(g)  Career Pathways Plan Statewide Recommendation. – The State Board of Education shall evaluate implementation and success of the pilot plans and identify successful, reliable elements to develop recommendations to the General Assembly for a career pathways plan that could be implemented by a local board of education in its local school administrative unit. The career pathways plan may contain multiple career pathway options, as well as a default career pathway program, and shall be designed to improve the quality of classroom instruction, increase the attractiveness of teaching, and encourage the recognition, impact, and retention of high‑quality teachers. The State Board of Education shall report no later than October 15, 2018, on the statewide career pathways plan to the offices of the President Pro Tempore of the Senate and the Speaker of the House of Representatives, the Senate Appropriations/Base Budget Committee, the House Committee on Appropriations, the Senate Appropriations Committee on Education/Higher Education, the House Appropriations Subcommittee on Education, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee.

SECTION 9.15.(h)  Career Pathways Plan Rules. – The State Board of Education shall adopt rules necessary to carry out the provisions of this section. Notwithstanding Article 2A of Chapter 150B of the General Statutes, the State Board of Education shall be exempt from rule making in establishing rules to carry out the career pathways pilot program set forth in this section.

SECTION 9.15.(i)  Career Pathways Plan Administration. – The State Board of Education, in consultation with the Office of the Governor, shall be responsible for administration of the career pathways plan pilot program and shall dedicate up to three full‑time staff positions. One position shall be assigned as the primary administrator of the program. The primary administrator shall (i) lead oversight of pilot local school administrative unit selection and career pathway development and piloting, (ii) lead assessments of pilots for career pathways plan recommendations, and (iii) provide information about progress toward goals of this section and activities undertaken to implement this section to the Governor, State Board of Education, and State Superintendent of Public Instruction. Two additional positions shall be assigned to assist the primary administrator.

SECTION 9.15.(j)  Matching Funds for Career Pathways Plan. The career pathways pilot program shall provide one hundred dollars ($100.00) per ADM for teacher salary supplements for up to twenty-five percent (25%) of ADM in each pilot local school administrative unit. State funding allocated to local school administrative units for the career pathways program pilot shall be matched by the unit at a minimum of one dollar ($1.00) of matching funds for every one dollar ($1.00) of State funds to pay supplements to teachers in the career pathways program. Matching funds may include the reallocation of other funds, including local, private, State, or federal funds.

SECTION 9.15.(k)  Flexible Funding for Career Pathways Plan Pilot Local School Administrative Units. Notwithstanding G.S. 115C‑105.25(5b), beginning with the 2015‑2016 fiscal year, the State Board of Education shall increase flexibility in the use of State funds for pilot local school administrative units by allowing positions allocated for classroom teachers and instructional support personnel to be converted to dollar equivalents for the purpose of transferring funds into the career pathways program for those local school administrative units participating in the program. These positions shall be converted at the first step of the "A" Teacher Salary Schedule effective for that fiscal year.

SECTION 9.15.(l)  G.S. 150B‑1(d) reads as rewritten:

"(d)      Exemptions from Rule Making. – Article 2A of this Chapter does not apply to the following:

(26)      The State Board of Education with respect to the career pathways pilot program established by the 2013 General Assembly. The program authorizes local school administrative units to develop a program for differentiated pay for classroom teachers based on a teacher's demonstrated effectiveness and assumption of advanced roles."

 

PART X. COMMUNITY COLLEGES

 

PROCESS FOR PERIODICALLY REVISING ENROLLMENT TIERS

SECTION 10.2.  The State Board of Community Colleges shall develop a process for periodically reviewing and revising how courses and programs are classified into tiers in the enrollment funding model. The process shall be developed by March 1, 2015, and reported to the Office of State Budget and Management and the Fiscal Research Division of the North Carolina General Assembly.

The State Board of Community Colleges shall identify those courses and programs in high‑need areas and may suggest any revisions to the model. These revisions shall be submitted as part of their budget requests for the 2017‑2019 fiscal biennium.

 

Revenues/expenditures/FEES COLLECTED AND ASSESSED BY THE MANUFACTURING SOLUTIONS CENTER AND THE TEXTILE TECHNOLOGY CENTER

SECTION 10.3.  The State Board of Community Colleges shall report, no later than January 15, 2015, to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management a summary of the revenues and expenditures for the Manufacturing Solutions Center at Catawba Valley Community College and for the Textile Technology Center at Gaston College during the 2012‑2013 and 2013‑2014 fiscal years. The report shall include information on the structure of the fees assessed and the total fees collected by each Center.

 

JLEOC STUDY ON VOCATIONAL TRAINING FOR INDIVIDUALS WITH INTELLECTUAL DISABILITIES

SECTION 10.4.(a)  The Joint Legislative Education Oversight Committee shall study at least the following issues related to vocational training for individuals with intellectual disabilities:

(1)        Model programs for implementation on a systemwide basis at community college campuses and constituent institutions of The University of North Carolina for training and developing vocational expertise and job readiness in students with intellectual disabilities.

(2)        Enhancing employment outcomes for individuals with intellectual disabilities.

(3)        Barriers to employment for individuals with intellectual disabilities.

(4)        Establishment and expansion of partnerships between community colleges, constituent institutions of The University of North Carolina, the Department of Health and Human Services, Division of Vocational Rehabilitative Services, and community‑based organizations that offer job training and job placement opportunities for individuals with intellectual disabilities.

(5)        Policies for ensuring that students with intellectual disabilities are prepared for higher educational opportunities upon completion of their elementary and secondary school education.

(6)        Policies for transition planning and job training for students with intellectual disabilities as they complete their elementary and secondary school education.

SECTION 10.4.(b)  The Joint Legislative Education Oversight Committee shall report the results of the study required by subsection (a) of this section to the General Assembly prior to the convening of the 2015 General Assembly.

 

Extend Authority to reorganize THE COMMUNITY COLLEGES SYSTEM OFFICE

SECTION 10.5.(a)  Section 10.1(b) of S.L. 2013‑360 reads as rewritten:

"SECTION 10.1.(b)  This section expires June 30, 2014.June 30, 2015."

 

PERMIT the board of Community Colleges TO TRANSFER certain FUNDS TO DEPARTMENT OF COMMERCE TO OFFSET APPRENTICESHIP FEES

SECTION 10.6.(a)  Notwithstanding any other provision of law, of the funds appropriated by this act for the Customized Industry Training Program for the 2014‑2015 fiscal year, the State Board of Community Colleges shall transfer three hundred thousand dollars ($300,000) to the Department of Commerce to offset fee revenue lost when apprenticeship fees assessed pursuant to G.S. 94‑12 are waived.

SECTION 10.6.(b)  This section shall expire June 30, 2015.

 

Community Colleges and UNC Study Bilateral Agreements Regarding Transfer Process

SECTION 10.7.(a)  The Board of Governors of The University of North Carolina and the State Board of Community Colleges shall jointly study the various bilateral agreements and partnerships that exist between constituent institutions of The University of North Carolina and the community colleges throughout the State. The study shall specifically focus on those agreements and partnerships that aid in the transfer process and those agreements and partnerships that encourage or require students to complete some coursework at a community college before attending or transferring to a constituent institution. The study shall also provide data on the agreements and partnerships, to the extent this information is available, on all of the following:

(1)        A description of the agreement or partnership;

(2)        The number of years it has been in existence;

(3)        The number of participants by year; and

(4)        An analysis of student outcomes after a transfer under the agreement or partnership.

SECTION 10.7.(b)  The findings of the study shall be reported to the Joint Legislative Education Oversight Committee and the Senate Appropriations Committee on Education/Higher Education and the House Appropriations Subcommittee on Education by February 1, 2015. The final report shall also include recommendations on replication and expansion possibilities for the various agreements and partnerships.

 

funds for the Cape fear Botanical Gardens

SECTION 10.8.  Of the funds allocated to Fayetteville Technical Community College by the Community Colleges System Office for the 2014-2015 fiscal year, Fayetteville Technical Community College may use up to fifty thousand dollars ($50,000) to support the Cape Fear Botanical Garden as part of the Fayetteville Technical Community College Horticulture Technology/Management program.

 

PART XI. UNIVERSITIES

 

DISTINGUISHED PROFESSOR ENDOWMENT trust FUND

SECTION 11.1.(a)  Part 4A of Article 1 of Chapter 116 of the General Statutes is amended by adding a new section to read:

"§ 116‑41.14A.  Distinguished Professor Endowment Trust Funds; no State match requirement.

Notwithstanding any other provision of this Part, no State match shall be required to use private donations and gifts that were or are intended by the donor for the Distinguished Professorships. However, if the written terms of a particular donation or gift required a State match, then this section shall not apply without the written consent of the donor."

SECTION 11.1.(b)  G.S. 116‑41.13 reads as rewritten:

"§ 116‑41.13.  Distinguished Professors Endowment Trust Fund; purpose.

The General Assembly of North Carolina recognizes that the public university system would be greatly strengthened by the addition of distinguished scholars. It further recognizes that private as well as State support is preferred in helping to obtain distinguished scholars for the State universities and that private support will help strengthen the commitment of citizens and organizations in promoting excellence throughout all State universities. It is the intent of the General Assembly to establish a trust fund to provide the opportunity to each State university to receive and match challenge grants to create endowments for selected distinguished professors to occupy chairs within the university. The associated foundations that serve the universities shall solicit and receive gifts from private sources to provide for matching funds to the trust fund challenge grants for the establishment of endowments for chairs within universities.universities and to provide matching funds to the trust fund challenge grants when matching funds are available."

 

UNC TO FUND NORTH CAROLINA RESEARCH CAMPUS

SECTION 11.2.  Of the funds appropriated in this act to the Board of Governors of The University of North Carolina, the Board of Governors shall use twenty‑nine million dollars ($29,000,000) to support UNC‑related activities at the North Carolina Research Campus at Kannapolis.

 

REPORT ON INSTITUTIONAL TRUST FUNDS

SECTION 11.4.  G.S. 116‑36.1(e) reads as rewritten:

"(e)       Each institution shall submit such reports or other information concerning its trust fund accounts as may be required by the Board.Board or by the Director of the Budget."

 

REPORT ON ACADEMIC SUMMER BRIDGE

SECTION 11.5.  No later than November 1, 2014, the Board of Governors of The University of North Carolina shall report to the Office of State Budget and Management and the Joint Legislative Education Oversight Committee on the impact of Academic Summer Bridge programs on student outcomes. At a minimum, the report shall include information by institution on graduation rates, average time to degree, and student academic performance at multiple intervals over a four‑year course of study.

 

OPERATION OF 4‑H CAMPS AND USE OF VARIOUS SITES OF DEFUNCT 4‑H CAMPS AND TRANSFER 4‑H CAMP SERTOMA/MOORE SPRINGS TO THE STATE PARKS SYSTEM.

SECTION 11.7.(a)  Part 5 of Article 1 of Chapter 116 of the General Statutes is amended by adding a new section to read:

"§ 116‑43.20.  Operation of 4‑H camps.

(a)        North Carolina State University shall not close the 4‑H camps listed in subdivisions (1) through (3) of this subsection. Further, North Carolina State University shall continue to operate each of those camps as 4‑H camps and to offer programs and services at the sites of each of those camps at a level that is at least equivalent to the programs and services offered at each site as of June 30, 2013. The following three 4‑H camps are to continue and are to be operated as 4‑H camps as provided by this subsection:

(1)        Eastern 4‑H Center located in Columbia, NC.

(2)        Millstone 4‑H Camp located near Ellerbe, NC.

(3)        Betsy‑Jeff Penn 4‑H Educational Center located near Reidsville, NC.

(b)        The 4‑H camps that were located at the sites listed in subdivisions (1) and (2) of this subsection have ceased to operate as 4‑H camps. At the request of the board of county commissioners of any county that is the site of one of the defunct 4‑H camps listed in this subsection, North Carolina State University shall consult with the board regarding actions that may be taken to reopen the 4‑H camp in that county and other options that may be available for the use of the site.

Within 90 days after any consultation with a board of county commissioners conducted pursuant to this subsection, North Carolina State University shall submit a written report to the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Education/Higher Education, the House of Representatives Appropriations Subcommittee on Education, and the Fiscal Research Division regarding the feasibility of reopening the site as a 4‑H camp and any other options considered for the use of the site.

The list of defunct 4‑H camps follows:

(1)        Anita‑Alta 4‑H Camp in the Pisgah National Forest in Lenoir, NC.

(2)        Swannanoa 4‑H Camp located at Swannanoa, NC.

(c)        North Carolina State University shall take all practicable measures to operate the 4‑H camps in a manner that will generate a positive fund balance in the institutional trust funds that account for the activities of the 4‑H camps."

SECTION 11.7.(b)  Article 7 of Chapter 146 of the General Statutes is amended by adding a new section to read:

"§ 146‑30.1.  Application of net proceeds of disposition or use of real property allocated to the 4‑H Camping Program.

(a)        Limitation. – Notwithstanding G.S. 146‑30 or any other provision of law, and subject to the limitations contained in any applicable deed, the net proceeds of any disposition of, use of, or activity on real property allocated to the 4‑H Camping Program shall be used solely for the operation of the 4‑H Camping Program, for the acquisition of real property for the 4‑H Camping Program, or for the funding of an endowment to support these purposes. These proceeds shall not be used to pay any debt or other financial obligation owed to a State agency that arose prior to the effective date of this section.

(b)        Definition of Net Proceeds. – For purposes of this section, the term "net proceeds" shall have the same meaning as in G.S. 146‑30.

(c)        No Supplanting of General Fund Support. – It is the intent of the General Assembly that appropriations for the 4‑H Camping Program not be reduced as a result of the realization of proceeds under this section. Instead, the General Assembly intends that the amount of appropriations be determined as if no proceeds had been realized under this section. The Director of the Budget shall not decrease the recommended continuation budget requirements for the 4‑H Camping Program as a result of proceeds being realized under this section.

(d)        Proceeds Must Be Appropriated. – Nothing in this section shall be construed to appropriate the proceeds described in this section."

SECTION 11.7.(c)  If on the effective date of this section the net proceeds of any use of, or activity on, real property allocated to the 4‑H Camping Program are being used in a manner prohibited by G.S. 146‑30.1, then notwithstanding that section they may continue to be used in that manner.

SECTION 11.7.(d)  The Department of Administration shall reallocate all of the approximately 716 acres of State‑owned real property that is part of Camp Sertoma/Moore Springs property to the Department of Environment and Natural Resources. The General Assembly authorizes the Department of Environment and Natural Resources to add this property to the State Parks System as provided in G.S. 113‑44.14(b).

SECTION 11.7.(e)  Of the funds appropriated by this act for the 2014‑2015 fiscal year to the Board of Governors of The University of North Carolina for North Carolina State University the sum of seven hundred twenty‑five thousand dollars ($725,000) in recurring funds shall be allocated equally among all operating 4‑H camps, including any currently defunct 4‑H camp that reopens and operates as a 4‑H camp. The funds allocated under this section shall be used for the operation, repair, and renovation of operating 4‑H camps.

 

STUDY FINANCIAL AID PAYMENT SCHEDULE TO INCENTIVIZE THIRTY COMPLETED HOURS PER YEAR and implement revised payment schedule

SECTION 11.8.  Section 11.15(h) of S.L. 2013‑360 reads as rewritten:

"SECTION 11.15.(h)  The State Education Assistance Authority shall structure its payment schedule Authority, in consultation with The University of North Carolina, the North Carolina Community College System, and the North Carolina Independent Colleges and Universities, shall study ways to structure its financial aid payment schedules to encourage students to complete an average of 30 credit hours per academic year. The State Education Assistance Authority shall make an interim report to the Joint Legislative Education Oversight Committee by March 1, 2014, regarding the measures implemented by the Authority pursuant to this subsection.March 1, 2015, on its progress or lack thereof in developing such schedules and shall make a final report to the Joint Legislative Education Oversight Committee by October 1, 2015, about the financial aid payment schedules it proposes to implement.

After submitting its final report to the Joint Legislative Education Oversight Committee, the State Education Assistance Authority shall structure its payment schedules to encourage students to complete an average of 30 credit hours per academic year. The revised payment schedules shall be in place for financial aid awards made for the 2016‑2017 academic year and all subsequent academic years."

 

UNC FACULTY TUITION WAIVER

SECTION 11.9.(a)  G.S. 116‑143(d) reads as rewritten:

"(d)      Notwithstanding the above provision relating to the abolition of free tuition, the Board of Governors of The University of North Carolina may, in its discretion, provide regulations under which a full‑time faculty member of the rank of full‑time instructor or above, and any full‑time staff member of The University of North Carolina may during the period of normal employment enroll for not more than two three courses per year in The University of North Carolina free of charge for tuition, tuition and fees, provided such enrollment does not interfere with normal employment obligations and further provided that such enrollments are not counted for the purpose of receiving general fund appropriations."

SECTION 11.9.(b)  This section applies to the 2014‑2015 fall academic semester and each subsequent academic semester.

 

REPORT ON COLLEGE FOUNDATION OF NORTH CAROLINA SUSTAINABILITY

SECTION 11.11.  No later than December 1, 2014, the State Education Assistance Authority shall report to the Office of State Budget and Management and the Fiscal Research Division of the General Assembly on its progress toward funding operations of the College Foundation of North Carolina entirely from non‑General Fund sources. This report shall include all of the following:

(1)        The status of fundraising efforts to date.

(2)        A detailed plan and time line for generating additional revenues.

(3)        Estimated expenditures and revenues by type for the next four fiscal years.

(4)        Potential reduction measures and alternative funding options should General Fund appropriations not be provided in the next biennium.

 

TUITION ASSISTANCE TO VETERANS WHO PARTICIPATE IN THE YELLOW RIBBON PROGRAM AND THEIR SPOUSES AND DEPENDENT RELATIVES

SECTION 11.12.(a)  Article 14 of Chapter 116 of the General Statutes is amended by adding a new section to read:

"§ 116‑143.8.  Tuition assistance for certain veterans and their dependents.

(a)        The following definitions apply in this section:

(1)        Institution of higher education. – Has the same meaning as in G.S. 116‑143.1(a)(1).

(2)        Yellow Ribbon Program. – Yellow Ribbon G.I. Education Enhancement Program, 38 U.S.C. § 3317.

(b)        Either the Board of Governors of The University of North Carolina or one or more constituent institutions shall annually enter into an agreement with the United States Secretary of Veterans Affairs to participate in the Yellow Ribbon Program. The State Board of Community Colleges or one or more community colleges shall annually enter into an agreement with the United States Secretary of Veterans Affairs to participate in the Yellow Ribbon Program. The agreements shall include all of the following terms:

(1)        A grant of ninety percent (90%) of the cost of tuition and mandatory fees not otherwise covered shall be provided for every eligible veteran or eligible spouse or dependent relative of a veteran who is enrolled or will be enrolled as an undergraduate student at a constituent institution or as a student at a community college.

(2)        To be eligible for grants under the Yellow Ribbon Program, a student must meet all program requirements established by the federal government. In addition, to be eligible for a Yellow Ribbon grant in which the school share of the grant is paid with State appropriation, a student must be enrolled as an undergraduate student at a constituent institution or as a student at a North Carolina community college.

(c)        This section is not intended to prohibit constituent institutions from using private funds to provide Yellow Ribbon grants for students enrolled in master's or doctoral level programs.

(d)        The General Assembly encourages private institutions of higher education in North Carolina to participate in the Yellow Ribbon Program."

SECTION 11.12.(b)  It is the intent of the General Assembly to establish two reserve funds for the purpose of forward funding tuition assistance to students who participate in the Yellow Ribbon Program. Therefore, the General Assembly establishes the two following reserve funds:

(1)        There is established the UNC Yellow Ribbon Reserve to be managed by the Board of Governors of The University of North Carolina. Of the funds appropriated by this act to the Board of Governors, the sum of four million eight hundred sixty‑three thousand two hundred seventy‑six dollars ($4,863,276) shall be allocated to the UNC Yellow Ribbon Reserve and shall be held in reserve for the 2014‑2015 fiscal year. Beginning with the 2015‑2016 fiscal year, the funds in the UNC Yellow Ribbon Reserve shall be used to fund undergraduate tuition assistance to participants in the Yellow Ribbon Program for the 2015‑2016 academic year and each subsequent academic year.

(2)        There is established the Community College Yellow Ribbon Reserve to be managed by the State Board of Community Colleges. Of the funds appropriated by this act to the Community Colleges System Office, the sum of one million dollars ($1,000,000) shall be allocated to the Community College Yellow Ribbon Reserve and shall be held in reserve for the 2014‑2015 fiscal year. Beginning with the 2015‑2016 fiscal year, the funds in the Community College Yellow Ribbon Reserve shall be used to fund tuition assistance to participants in the Yellow Ribbon Program for the 2015‑2016 academic year and each subsequent academic year.

SECTION 11.12.(c)  The Board of Governors and the State Board of Community Colleges shall each report to the Joint Legislative Education Oversight Committee by January 1, 2015, regarding their planned participation in the Yellow Ribbon Program for the 2015‑2016 academic year. Each report shall include the following information:

(1)        The number and identity of constituent institutions or community colleges that will participate in the Yellow Ribbon Program.

(2)        The methodology used by each governing board to select the institutions of higher education that will participate in the Yellow Ribbon Program.

(3)        For each institution that will participate, the maximum number of students and the maximum award amount per student.

(4)        A list of the institutions of higher education that will not participate in the Yellow Ribbon Program and the reason each institution is not participating.

SECTION 11.12.(d)  Subsection (a) of this section applies to the 2015‑2016 academic year and each subsequent academic year.

 

STUDY UNIVERSITY TUITION

SECTION 11.15.(a)  The Joint Legislative Education Oversight Committee shall study the increasing cost of attendance for resident and nonresident students attending The University of North Carolina. In doing so, the Committee shall consider, at a minimum, all of the following:

(1)        The tuition and mandatory fees at the constituent institutions of The University of North Carolina.

(2)        How changes in tuition and fees in recent years have compared to overall economic inflation.

(3)        The funding available to offset increases in the cost of attendance, which could include non‑General Fund revenues and the availability of State‑ and non‑State-funded financial aid.

(4)        The tuition cost controls or limits that may have been implemented in other states.

(5)        The desirability of encouraging students seeking an undergraduate degree to enroll first in a community college for college credit and then enroll in a constituent institution to complete the requirements for the undergraduate degree.

SECTION 11.15.(b)  The Joint Legislative Education Oversight Committee shall report the results of the study required by subsection (a) of this section to the General Assembly prior to the convening of the 2015 General Assembly.

 

UNC REVERSIONS

SECTION 11.17.(a)  G.S. 116‑30.3 reads as rewritten:

"§ 116‑30.3.  Reversions.

(a)        Of the General Fund current operations appropriations credit balance remaining at the end of each fiscal year in each budget code of a special responsibility constituent institution, except for the budget code of the Area Health Education Centers of the University of North Carolina at Chapel Hill, any amount of the General Fund appropriation for that fiscal year may be carried forward by the institution to the next fiscal year and is appropriated for one‑time expenditures that will not impose additional financial obligations on the State. Of the General Fund current operations appropriations credit balance remaining in the budget code of the Area Health Education Centers of the University of North Carolina at Chapel Hill, any amount of the General Fund appropriation for that fiscal year may be carried forward in that budget code to the next fiscal year and is appropriated for one‑time expenditures that will not impose additional financial obligations on the State. However, the amount carried forward under this section shall not exceed two and one‑half percent (2 1/2%) of the General Fund appropriation. The Director of the Budget, under the authority set forth in G.S. 143C‑6‑2 shall establish the General Fund current operations credit balance remaining in each budget code of each institution.Of the General Fund current operations appropriations credit balance remaining at the end of each fiscal year in each of the budget codes listed in this subsection, any amount of the General Fund appropriation for that budget code for that fiscal year (i) may be carried forward to the next fiscal year in that budget code, (ii) is appropriated in that budget code, and (iii) may be used for any of the purposes set out in subsection (f) of this section. However, the amount carried forward in each budget code under this subsection shall not exceed two and one‑half percent (2.5%) of the General Fund appropriation in that budget code. The Director of the Budget, under the authority set forth in G.S. 143C‑6‑2, shall establish the General Fund current operations credit balance remaining in each budget code.

The budget codes that may carry forward a General Fund current operations appropriations credit balance remaining at the end of each fiscal year pursuant to this section are the budget codes for each of the following:

(1)        Each special responsibility constituent institution.

(2)        The Area Health Education Centers of the University of North Carolina at Chapel Hill.

(3)        General Administration Budget Code 16010.

(b)        Repealed by Session Laws 1998‑212, s. 11(b).

(c)        Repealed by Session Laws 1998‑212, s. 11(a).

(d)        Repealed by Session Laws 1998‑212, s. 11(b).

(e)        Notwithstanding G.S. 143C‑1‑2 of the General Fund current operations appropriations credit balance remaining in Budget Code 16010 of the Office of General Administration of The University of North Carolina, any amount of the General Fund appropriation for that fiscal year may be carried forward in that budget code to the next fiscal year and is appropriated for one‑time expenditures that will not impose additional financial obligations on the State. However, the amount carried forward under this subsection shall not exceed two and one‑half percent (2 1/2%) of the General Fund appropriation. The Director of the Budget, under the authority set forth in G.S. 143C‑6‑2, shall establish the General Fund current operations credit balance remaining in Budget Code 16010 of the Office of General Administration of The University of North Carolina. The funds shall not be used to support positions.

(f)         Funds carried forward pursuant to subsection (a) of this section may be used for one‑time expenditures, provided, however, that the expenditures shall not impose additional financial obligations on the State and shall not be used to support positions."

SECTION 11.17.(b)  G.S. 116‑14(b2) reads as rewritten:

"(b2)    The President, in consultation with the State Auditor and the Director of the Office of State Human Resources, shall ascertain that the management staff and internal financial controls are in place and continue in place to successfully administer the additional authority authorized under G.S. 116‑14(b1) and G.S. 116‑30.3(e). G.S. 116‑30.3. All actions taken by the President pursuant to G.S. 116‑14(b1) and G.S. 116‑30.3(e) G.S. 116‑30.3 are subject to audit by the State Auditor."

SECTION 11.17.(c)  This section applies to the 2014‑2015 fiscal year and each subsequent fiscal year.

 

UNC SET NONRESIDENT TUITION RATES

SECTION 11.18.  Notwithstanding the provisions of S.L. 2013‑360, the Board of Governors of The University of North Carolina may set nonresident undergraduate tuition rates for the 2014‑2015 fiscal year at any level deemed appropriate by the Board of Governors; however, the systemwide total in new tuition receipts due to these changes must be at least twenty‑seven million two hundred forty‑three thousand one hundred fifty‑seven dollars ($27,243,157) for the 2014‑2015 fiscal year.

 

UNC STRATEGIC PLAN FUNDS

SECTION 11.19.  Section 11.13 of S.L. 2013‑360 reads as rewritten:

"SECTION 11.13.  Of the funds appropriated by this act to the Board of Governors of The University of North Carolina for the 2013‑2015 fiscal biennium, the Board of Governors may spend a sum of up to fifteen million dollars ($15,000,000) for the 2013‑2014 fiscal year and a sum of up to fifteen million dollars ($15,000,000) for the 2014‑2015 fiscal yearon a recurring basis to implement provisions of The University of North Carolina Strategic Plan as set out in the report "Our Time, Our Future: The University of North Carolina Compact with North Carolina. These funds are in addition to any new funds appropriated for The University of North Carolina by this act."

 

REPORT ON FUNDING OF STATE MEDICAL SCHOOLS

SECTION 11.20.  The University of North Carolina System, working with the appropriate constituent institutions and health systems, shall report to the Joint Legislative Oversight Committee on Health and Human Services and the Joint Legislative Education Oversight Committee on how the medical schools are funded. The report shall include a detailed explanation of the sources of all income within both a current and historical context, noting any changes in funding sources and amounts over time. The report shall also include a detailed explanation of operating expenses so that they may be compared to income. The report required by this section is due by October 1, 2014, and shall be based on the most recent audited fiscal year practicable.

 

STUDY ON ESTABLISHMENT OF NEW OPTOMETRY SCHOOLS

SECTION 11.21.(a)  By December 1, 2014, the Board of Governors of The University of North Carolina shall evaluate and report to the Joint Legislative Education Oversight Committee, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division on the feasibility of establishing a school of optometry at one or more of the following constituent institutions:

(1)        The University of North Carolina at Chapel Hill.

(2)        The University of North Carolina at Pembroke.

(3)        East Carolina University.

(4)        Elizabeth City State University.

(5)        Fayetteville State University.

(6)        North Carolina Agricultural and Technical State University.

(7)        North Carolina Central University.

(8)        Winston‑Salem State University.

SECTION 11.21.(b)  The report by the Board of Governors pursuant to subsection (a) of this section shall include at least all of the following:

(1)        A breakdown of any projected capital, operational, or other expenditures necessary for establishing and operating a school of optometry affiliated with the institution.

(2)        A breakdown of all funds available to assist the institution with these expenses.

(3)        A projected number of applicants for the affiliated school of optometry.

SECTION 11.21.(c)  The North Carolina Independent Colleges and Universities, Inc., (NCICU) is encouraged to examine and report by December 1, 2014, to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division on the feasibility of establishing a school of optometry affiliated with an NCICU college or university. The report should include at least all of the following:

(1)        A breakdown of any projected capital, operational, or other expenditures necessary for establishing and operating a school of optometry affiliated with the institution.

(2)        A breakdown of all funds available to assist the institution with these expenses.

(3)        A projected number of applicants for the affiliated school of optometry.

 

UNC MANAGEMENT FLEXIBILITY REDUCTION

SECTION 11.22.  Section 11.5 of S.L. 2013‑360 reads as rewritten:

"SECTION 11.5.(a)  The management flexibility reduction for The University of North Carolina shall not be allocated by the Board of Governors to the constituent institutions and affiliated entities using an across‑the‑board method but shall be done in a manner that recognizes the importance of the academic missions and differences among The University of North Carolina entities.

Before taking reductions in instructional budgets, the Board of Governors and the campuses of the constituent institutions shall consider all of the following:

(1)        Reducing State funding for centers and institutes, speaker series, and other nonacademic activities.

(2)        Faculty workload adjustments.

(3)        Restructuring of research activities.

(4)        Implementing cost‑saving span of control measures.

(5)        Reducing the number of senior and middle management positions.

(6)        Eliminating low‑performing, redundant, or low‑enrollment programs.

(7)        Using alternative funding sources.

(8)        Protecting direct classroom services.

The Board of Governors and the campuses of the constituent institutions also shall review the institutional trust funds and the special funds held by or on behalf of The University of North Carolina and its constituent institutions to determine whether there are monies available in those funds that can be used to assist with operating costs. In addition, the campuses of the constituent institutions also shall require their faculty to have a teaching workload equal to the national average in their Carnegie classification.

"SECTION 11.5.(b)  In allocating the management flexibility reduction, no reduction in State funds shall be allocated in either fiscal year of the 2013‑2015 biennium to any of the following:

(1)        UNC Need‑Based Financial Aid.

(2)        North Carolina Need‑Based Scholarship.

(3)        Any special responsibility constituent institution which has been granted a basic type designation of "Special Focus Institution" under the Carnegie Classification of Institutions of Higher Education.

(4)        Any special responsibility constituent institution which has been granted a basic type designation of "Baccalaureate Colleges–Arts & Sciences" under the Carnegie Classification of Institutions of Higher Education.

(5)        Any constituent high school of The University of North Carolina.

"SECTION 11.5.(c)  The University of North Carolina shall report on the implementation of the management flexibility reduction in subsection (a) of this section to the Office of State Budget and Management and the Fiscal Research Division no later than October 1, 2013. October 1, 2014. This report shall identify both of the following by campus:

(1)        The total number of positions eliminated by type (faculty/nonfaculty).

(2)        The low‑performing, redundant, and low‑enrollment programs that were eliminated."

 

restore teaching fellows program

SECTION 11.23.  Section 1.38(a) and Section 1.38(c) of S.L. 2011-266 are repealed.

 

eCSu sTUDY

SECTION 11.24.(a)  The General Assembly finds that Elizabeth City State University had its origins established during the 1891 legislative session and is a key educational and economic resource for northeastern North Carolina. The Joint Legislative Education Oversight Committee shall evaluate and study strategies to address any financial or enrollment concerns.

SECTION 11.24.(b)  The Joint Legislative Education Oversight Committee shall examine, at a minimum, any plans of The University of North Carolina Board of Governors or of Elizabeth City State University to restore Elizabeth City State University to more financially sustainable conditions, including the strategies described in Elizabeth City State University’s March 2014, document titled, "Rightsizing ECSU: The Need for Financial Stability". Further, the General Assembly urges that, in conducting the study described in subsection (a) of this section, the JLEOC's work include consultation with the Board of Trustees of Elizabeth City State University and any other appropriate parties.

SECTION 11.24.(c) The Joint Legislative Education Oversight Committee shall report the results of the study required by this section to the General Assembly prior to the convening of the 2015 General Assembly. The report shall include recommendations, if any, for actions by the General Assembly to address such financial and enrollment concerns.

 

PART XII. DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

SUBPART XII‑A. CENTRAL MANAGEMENT AND SUPPORT

 

HHS COMPETITIVE GRANTS PROCESS REVISIONS

SECTION 12A.1.  Section 12A.2 of S.L. 2013‑360 reads as rewritten:

"FUNDING FOR NONPROFIT ORGANIZATIONS/ESTABLISH COMPETITIVE GRANTS PROCESS

"SECTION 12A.2.(a)  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Central Management and Support, the sum of nine million five hundred twenty‑nine thousand one hundred thirty‑four dollars ($9,529,134) in recurring funds for each year of the 2013‑2015 fiscal biennium,the 2013‑2014 fiscal year and the sum of nine million three hundred three thousand nine hundred eleven dollars ($9,303,911) in recurring funds for the 2014‑2015 fiscal year, the sum of three hundred seventeen thousand four hundred dollars ($317,400) in nonrecurring funds for each year of the 2013‑2015 fiscal biennium, and the sum of three million eight hundred fifty‑two thousand five hundred dollars ($3,852,500) appropriated in Section 12J.1 of this act in Social Services Block Grant funds for each year of the 2013‑2015 fiscal biennium shall be used to allocate funds for nonprofit organizations.

"SECTION 12A.2.(d)  It is the intent of the General Assembly that, beginning fiscal year 2014‑2015, the Department implement a competitive grants process for nonprofit funding. To that end, the Department shall develop a plan that establishes a competitive grants process to be administered by the Division of Central Management and Support. The Department shall develop a plan that, at a minimum, includes each of the following:

(1)        A request for application (RFA) process to allow nonprofits to apply for and receive State funds on a competitive basis.

(2)        A requirement that nonprofits match a minimum of ten percent (10%) of the total amount of the grant award.

(3)        A requirement that the Secretary prioritize grant awards to those nonprofits that are able to leverage non‑State funds in addition to the grant award.

(4)        A process that awards grants to nonprofits dedicated to providingthat have the capacity to provide services on a statewide basis and that support any of the following State health and wellness initiatives:

a.         A program targeting advocacy, support, education, or residential services for persons diagnosed with autism.

b.         A comprehensive program of education, advocacy, and support related to brain injury and those affected by brain injury.

c.         A system of residential supports for those afflicted with substance abuse addiction.

d.         A program of advocacy and supports for individuals with intellectual and developmental disabilities or severe and persistent mental illness, substance abusers, or the elderly.

e.         Supports and services to children and adults with developmental disabilities or mental health diagnoses.

f.          A food distribution system for needy individuals.

g.         The provision and coordination of services for the homeless.

h.         The provision of services for individuals aging out of foster care.

i.          Programs promoting wellness, physical activity, and health education programming for North Carolinians.

j.          A program focused on enhancing vision screening through the State's public school system.

k.         Provision for the delivery of after‑school services for apprenticeships or mentoring at‑risk youth.

l.          The provision of direct services for amyotrophic lateral sclerosis (ALS) and those diagnosed with the disease.

m.        The provision of assistive information technology services for blind and disabled persons.

n.         A comprehensive smoking prevention and cessation program that screens and treats tobacco use in pregnant women and postpartum mothers.

(5)        Ensures that funds received by the Department to implement the plan supplement and do not supplant existing funds for health and wellness programs and initiatives.

…."

 

FUNDS FOR STATEWIDE HEALTH INFORMATION EXCHANGE

SECTION 12A.2.(a)  It is the intent of the General Assembly:

(1)        To maximize receipt of federal funds for administration and support of the statewide health information exchange network (HIE Network).

(2)        To allow the North Carolina Health Information Exchange (NC HIE), the nonprofit corporation responsible for overseeing and administering the HIE Network, to receive the State's share of available federal funds for administration and support of the HIE Network in order to reduce the operating costs of the HIE Network by an amount sufficient to allow for the elimination or reduction of the participation fee the NC HIE currently imposes on hospitals required to connect to the HIE Network pursuant to G.S. 90‑413.3A.

(3)        Beginning with the 2015‑2016 fiscal year, to make the Department of Health and Human Services, Division of Central Management and Support, responsible for using State funds to draw down available matching federal funds for administration and support of the HIE Network.

SECTION 12A.2.(b)  From the funds appropriated in this act to the Department of Health and Human Services, Division of Central Management and Support, for the health information exchange for the 2014‑2015 fiscal year, the Department shall allocate to the North Carolina Health Information Exchange, a nonprofit corporation, an amount sufficient to represent the State share for the maximum amount of approved federal matching funds for allowable Medicaid administrative costs related to the HIE Network.

SECTION 12A.2.(c)  By March 1, 2015, the NC HIE shall report to the Joint Legislative Oversight Committee on Health and Human Services, the Joint Legislative Oversight Committee on Information Technology, and the Fiscal Research Division on its use of (i) State appropriations allocated to the NC HIE pursuant to this section and (ii) federal matching funds received by the NC HIE for costs related to the HIE Network. The report shall include a detailed, audited report of all State and federal funds received by the NC HIE and all expenditures from these funds.

 

Repeal Plans to Implement System Modifications To Enable Contract Entities to Perform Medicaid Claim Adjudication in the Replacement Medicaid Management Information System

SECTION 12A.4.(a)  Section 12A.4(j) of S.L. 2013‑360 is repealed.

SECTION 12A.4.(b)  Section 12A.4(k) of S.L. 2013‑360, as amended by Section 4.11 of S.L. 2013‑363, is repealed.

 

Funds for Replacement Medicaid Management Information System

SECTION 12A.5.  Section 12A.4(a) of S.L. 2013‑360 reads as rewritten:

"SECTION 12A.4.(a)  The Secretary of the Department of Health and Human Services may utilize prior year earned revenue received for the replacement MMIS in the amount of nine million six hundred fifty‑eight thousand one hundred fifty‑two dollars ($9,658,152) for the 2013‑2014 fiscal year and in the amount of one million six hundred sixty‑six thousand six hundred twenty‑five dollars ($1,666,625) six million eight hundred ninety thousand six hundred dollars ($6,890,600) for the 2014‑2015 fiscal year. In the event the Department does not receive prior year earned revenues in the amounts authorized by this section, or funds are insufficient to advance the project, the Department may, with prior approval from the Office of State Budget and Management (OSBM), utilize overrealized receipts and funds appropriated to the Department to achieve the level of funding specified in this section for the replacement MMIS."

 

Funds for North Carolina Families Accessing Services Through Technology (NC FAST)

SECTION 12A.6.  Section 12A.6(a) of S.L. 2013‑360 reads as rewritten:

"SECTION 12A.6.(a)  Funds appropriated in this act in the amount of eight hundred sixty‑four thousand six hundred fifty‑five dollars ($864,655) for State fiscal year 2014‑2015 along with prior year earned revenue in the amount of four million one hundred thirty‑eight thousand two dollars ($4,138,002) and the cash balance in Budget Code 24410 Fund 2411 for the North Carolina Families Accessing Services through Technology (NC FAST) project shall be used to match federal funds in fiscal years 2013‑2014 and 2014‑2015 to expedite the development and implementation of the Eligibility Information System (EIS), Child Care, Low Income Energy Assistance, and Crisis Intervention Programs, and Child Service components of the NC FAST project."

 

SUPPLEMENTAL SHORT‑TERM ASSISTANCE FOR GROUP HOMES

SECTION 12A.7.(a)  Notwithstanding any other provision of law, funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2014‑2015 fiscal year for unpaid LME liabilities is reduced by the sum of two million dollars ($2,000,000) in nonrecurring funds, and that amount is instead allocated to the Department of Health and Human Services, Division of Central Management and Support, for the 2014‑2015 fiscal year to provide temporary, short‑term financial assistance in the form of a monthly payment to group homes on behalf of each resident who meets all of the following criteria:

(1)        Was eligible for Medicaid‑covered personal care services (PCS) prior to January 1, 2013, but was determined to be ineligible for PCS on or after January 1, 2013, due to Medicaid State Plan changes in PCS eligibility criteria specified in Section 10.9F of S.L. 2012‑142, as amended by Section 3.7 of S.L. 2012‑145 and Section 70 of S.L. 2012‑194.

(2)        Has continuously resided in a group home since December 31, 2012.

SECTION 12A.7.(b)  These monthly payments shall be subject to all of the following requirements and limitations:

(1)        The amount of the monthly payments authorized by this section shall not exceed four hundred sixty‑four dollars and thirty cents ($464.30) per month for each resident who meets all criteria specified in subsection (a) of this section.

(2)        A group home that receives the monthly payments authorized by this section shall not, under any circumstances, use these payments for any purpose other than providing, as necessary, supervision and medication management for a resident who meets all criteria specified in subsection (a) of this section.

(3)        The Department shall make monthly payments authorized by this section to a group home on behalf of each resident who meets all criteria specified in subsection (a) of this section only for the period commencing July 1, 2014, and ending June 30, 2015, or upon depletion of the two million dollars ($2,000,000) in nonrecurring funds appropriated in this act to the Division of Central Management and Support for the 2014‑2015 fiscal year for the purpose of this section, whichever is earlier.

(4)        The Department shall make monthly payments authorized by this section only to the extent sufficient funds are available from the two million dollars ($2,000,000) in nonrecurring funds appropriated in this act to the Division of Central Management and Support for the 2014‑2015 fiscal year for the purpose of this section.

(5)        The Department shall not make monthly payments authorized by this section to a group home on behalf of a resident during the pendency of an appeal by or on behalf of the resident under G.S. 108A‑70.9A.

(6)        The Department shall terminate all monthly payments pursuant to this section on June 30, 2015, or upon depletion of the funds appropriated in this act to the Division of Central Management and Support for the 2014‑2015 fiscal year for the purpose of this section, whichever is earlier.

(7)        Each group home that receives the monthly payments authorized by this section shall submit to the Department a list of all funding sources for the operational costs of the group home for the preceding two years, in accordance with the schedule and format prescribed by the Department.

SECTION 12A.7.(c)  The Department shall use an existing mechanism to administer these funds in the least restrictive manner that ensures compliance with this section and timely and accurate payments to group homes. The Department shall not, under any circumstances, use any portion of the two million dollars ($2,000,000) appropriated in this act to the Division of Central Management and Support for the purpose of this section for any other purpose.

SECTION 12A.7.(d)  By no later than April 1, 2015, the Department of Health and Human Services shall submit to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division:

(1)        A plan for a long‑term solution for individuals residing in group homes who would like to continue residing in this setting and, as a result of an independent assessment, have been determined to need only supervision, medication management, or both.

(2)        A list of funding sources for each group home that receives assistance authorized by this section, based on the information provided to the Department pursuant to Section 12A.7(b)(7).

SECTION 12A.7.(e)  Nothing in this section shall be construed as an obligation by the General Assembly to appropriate funds for the purpose of this section, or as an entitlement by any group home, resident of a group home, or other person to receive temporary, short‑term financial assistance under this section.

SECTION 12A.7.(f)  As used in this act, "group home" means any facility that (i) is licensed under Chapter 122C of the General Statutes, (ii) meets the definition of a supervised living facility under 10A NCAC 27G .5601(c)(1) or 10A NCAC 27G .5601(c)(3), and (iii) serves adults whose primary diagnosis is mental illness or a developmental disability but may also have other diagnoses.

SECTION 12A.7.(g)  This section expires June 30, 2015.

 

SUBPART XII‑B. DIVISION OF CHILD DEVELOPMENT AND EARLY EDUCATION

 

CHILD CARE SUBSIDY RATES/REVISE CO‑PAYMENTS AND ELIGIBILITY CRITERIA

SECTION 12B.1.  Section 12B.3 of S.L. 2013‑360 reads as rewritten:

"CHILD CARE SUBSIDY RATES

"SECTION 12B.3.(a)  The Beginning October 1, 2014, 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.determined based on a percentage of the federal poverty level as follows:

                                          AGE                                   INCOME PERCENTAGE LEVEL

                                          0‑5                                                           200%

                                          6‑12                                                         133%

The eligibility for any child with special needs, including a child who is 13 years of age or older, shall be two hundred percent (200%) of the federal poverty level.

"SECTION 12B.3.(a1)  A child receiving child care subsidy based on seventy‑five percent (75%) of the State median income shall continue to receive subsidy based on seventy‑five percent (75%) of the State median income until the child's next eligibility redetermination by the Department, and at that redetermination, the child's income eligibility shall be based on the eligibility criteria set forth in subsection (a) of this section.

"SECTION 12B.3.(b)  Fees Beginning October 1, 2014, fees for families who are required to share in the cost of care shall be established based on a ten percent (10%) of gross family income and adjusted for family size. Fees shall be determined as follows:income. Co‑payments shall not be prorated for part‑time care.

                                                                                   PERCENT OF GROSS

                                    FAMILY SIZE                         FAMILY INCOME

                                             1‑3                                                10%

                                             4‑5                                                 9%

                                              6 or more                                       8%

"SECTION 12B.3.(b1)  No later than January 1, 2015, the Department of Health and Human Services, Division of Child Development and Early Education, shall revise its child care subsidy policy to include in the policy's definition of "income unit" the following:

(1)        A stepparent and the stepparent's child, if applicable.

(2)        A nonparent relative caretaker, and the caretaker's spouse and child, if applicable, when the parent of the child receiving child care subsidy does not live in the home with the child.

"SECTION 12B.3.(h)  Payment for subsidized child care services provided with Work First Temporary Assistance for Needy Families Block Grant funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.

…."

 

EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES ENHANCEMENTS/REQUIRE FUND‑RAISING ASSISTANCE/CODIFY TANF MAINTENANCE OF EFFORT REQUIREMENT

SECTION 12B.2.(a)  Section 12B.9 of S.L. 2013‑360 is amended by adding the following new subsection to read:

"SECTION 12B.9.(i)  The North Carolina Partnership for Children, Inc., (Partnership) shall include in its assistance to local partnerships training and assistance with fund‑raising activities. From funds available to the Partnership, the Partnership shall hire a staff of three individuals who are qualified in the areas of grant writing and fund‑raising to assist local partnerships in raising non‑State funds, particularly regarding private donations. The staff hired pursuant to this subsection shall be located regionally and be accessible to participate in the various local partnerships' activities."

SECTION 12B.2.(b)  G.S. 143B‑168.15(g) reads as rewritten:

"(g)       Not less than thirty percent (30%) of the funds spent in each year of each local partnership's direct services allocation shall be used to expand child care subsidies. To the extent practicable, these funds shall be used to enhance the affordability, availability, and quality of child care services as described in this section. The North Carolina Partnership may increase this percentage requirement up to a maximum of fifty percent (50%) when, based upon a significant local waiting list for subsidized child care, the North Carolina Partnership determines a higher percentage is justified. Local partnerships shall spend an amount for child care subsidies that provides at least fifty‑two million dollars ($52,000,000) for the Temporary Assistance to Needy Families (TANF) maintenance of effort requirement and the Child Care Development Fund and Block Grant match requirement."

 

STUDY CHILD CARE SUBSIDY FOR 11‑ AND 12‑YEAR OLDS

SECTION 12B.3.(a)  The Department of Health and Human Services, Division of Child Development and Early Education, shall study child care subsidy for 11‑ and 12‑year olds. The Division shall study (i) available options for 11‑ and 12‑ year olds for before and after school care, (ii) available resources other than child care subsidy to pay for before and after school care, and (iii) the average cost of care for 11‑ and 12‑ year olds.

SECTION 12B.3.(b)  The Division shall report its findings and recommendations to the Joint Legislative Committee on Health and Human Services and the Fiscal Research Division no later than November 30, 2014. The report shall include separate findings and recommendations for 11‑ and 12‑year olds.

 

REVISE CHILD CARE ALLOCATION FORMULA

SECTION 12B.4.  Section 12B.4 of S.L. 2013‑360 reads as rewritten:

"CHILD CARE ALLOCATION FORMULA

"SECTION 12B.4.(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%) North Carolina Partnership for Children, Inc., 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%) North Carolina Partnership for Children, Inc., subsidy allocation:

(1)        Funds shall be allocated to a county based upon the projected cost of serving children under age 11 in families with all parents working who earn less than seventy‑five percent (75%) of the State median income.the applicable federal poverty level percentage set forth in Section 12B.3(a) of this act, as amended.

(2)        No county's allocation shall be less than ninety percent (90%) of its State fiscal year 2001‑2002 initial child care subsidy allocation.

(3)        For fiscal years 2013‑2014 and 2014‑2015, the Division of Child Development and Early Education shall base the formula identified in subdivision (1) of this subsection on the same data source used for the 2012‑2013 fiscal year.

(4)        The Department of Health and Human Services shall allocate to counties all State funds appropriated for child care subsidy and shall not withhold funds during the 2013‑2014 and 2014‑2015 fiscal years.

"SECTION 12B.4.(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 North Carolina Partnership for Children, Inc., funds within a county.

"SECTION 12B.4.(c)  When implementing the formula under subsection (a) of this section, the Department of Health and Human Services, Division of Child Development and Early Education, shall include the market rate increase in the formula process, rather than running these increases outside of the formula process. Additionally, the Department shall do the following:

(1)        Beginning fiscal year 2014‑2015, use one‑third implementation of the new Census data allocation formula every two years, provided the following applies regarding increases to a county's allocation:

a.         For the 2014‑2015 fiscal year allocations, a county that did not have a child care subsidy waiting list during the 2013‑2014 fiscal year shall not receive an increase in its allocation due to the new allocation formula directed in this subdivision.

b.         Beginning fiscal year 2015‑2016, a county whose spending coefficient is below ninety‑five percent (95%) in the previous fiscal year shall not receive an increase in its allocation in the following fiscal year. The Division may waive this requirement and allow an increase if the spending coefficient is below ninety‑five percent (95%) due to extraordinary circumstances, such as a State or federal disaster declaration in the affected county. By October 1st of each year, the Division shall report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division the counties that received a waiver pursuant to this sub-subdivision and the reasons for the waiver.

(2)        Effective immediately following the next new Census data release, use one‑third biennial implementation, which reflects a six‑year phase‑in approach for each Census cycle thereafter going forward."

 

Child Care Market Rate Adjustments

SECTION 12B.5.  By January 1, 2015, the Department shall implement an adjustment to child care market rates based upon the 2013 Child Care Market Rate Study. Three‑ to five‑star rated child care centers and three‑ to five‑star rated child care homes shall receive forty percent (40%) of the recommended rate adjustments as defined in the 2013 Child Care Market Rate Study.

 

NC Pre‑K Audits

SECTION 12B.6.  Section 12B.1 of S.L. 2013‑360, as amended by Sections 4.2 and 4.3 of S.L. 2013‑363, is amended by adding the following new subsection to read:

"SECTION 12B.1.(k)  The administration of the NC Pre‑K program by local partnerships shall be subject to the biennial financial and compliance audits authorized under G.S. 143B‑168.14(b)."

 

Child Care License Certification by DHHS

SECTION 12B.7.  The Department of Health and Human Services shall be responsible for certifying individuals and assigning a certification level pursuant to the North Carolina Early Education Certification based on rules adopted by the Commission.

 

SUBPART XII‑C. DIVISION OF SOCIAL SERVICES

 

CHILD PROTECTIVE SERVICES IMPROVEMENT INITIATIVE

SECTION 12C.1.(a)  Findings and Intent. – The General Assembly makes the following findings:

(1)        Child Protective Services' policy from the Department of Health and Human Services, Division of Social Services, recommends that the average child protective services caseload be no greater than 10 families at any time for workers performing child protective services assessments and 10 families at any time for staff providing in‑home services. However, data suggests that in 43 of the counties in this State, 21 have a caseload size of over 15 cases per worker; and further, in nine of those 21 counties, there is an average caseload size of over 20 cases per worker.

(2)        During the 2013‑2014 fiscal year, county departments of social services lost federal funding for child protective services under the Temporary Assistance of Needy Families (TANF) Block Grant and Title IV‑E funding. However, the number of Child Protective Services investigations has grown by twenty percent (20%) from fiscal year 2002 to fiscal year 2012.

(3)        There is no current, statewide data available on the performance of county departments of social services regarding child protective services.

(4)        There exists the potential for a conflict of interest to arise when a county department of social services has been appointed as guardian for both (i) a child who is the subject of a report of abuse, neglect, or dependency that would be investigated by Child Protective Services and (ii) for the parent or legal guardian of the child.

It is the intent of the General Assembly to (i) reduce caseload size for Child Protective Services' workers to the recommended standard, (ii) provide adequate resources for county departments of social services to provide child protective services for abused, neglected, and dependent children, (iii) provide for a comprehensive evaluation of various functions and funding regarding child protective services, and (iv) study ways to reduce conflicts of interest regarding guardianship and child protective services. To that end, the General Assembly supports the initiatives and the allocation of funds for child welfare services as described in this section.

SECTION 12C.1.(b)  Funds for Child Protective Services. – Of the funds appropriated in this act to the Department of Health and Human Services, Division of Social Services, the sum of eight million three hundred twenty‑six thousand six hundred twenty‑seven dollars ($8,326,627) shall be allocated to provide additional child protective services workers at county departments of social services to reduce caseloads to the recommended standard.

SECTION 12C.1.(c)  Funds for In‑Home Services. – Of the funds appropriated in this act to the Department of Health and Human Services, Division of Social Services, the sum of four million five hundred thousand dollars ($4,500,000) shall be allocated for Child Welfare in‑home services to provide and coordinate interventions and services that focus on child safety and protection, family preservation, and the prevention of further abuse or neglect.

SECTION 12C.1.(d)  Funds for Oversight of Child Welfare Services. – Of the funds appropriated in this act to the Department of Health and Human Services, Division of Social Services, the sum of seven hundred fifty thousand dollars ($750,000) shall be allocated to fund nine positions to the Division to enhance oversight of child welfare services in county departments of social services. These positions shall be used to monitor, train, and provide technical assistance to the county departments of social services to ensure children and families are provided services that address the safety, permanency, and well‑being of children served by child welfare services.

SECTION 12C.1.(e)  Pilot Program. – Of the funds appropriated in this act to the Department of Health and Human Services, Division of Social Services, the sum of three hundred thousand dollars ($300,000) shall be used to establish and implement a child protective services pilot program. The funds shall be used to enhance coordination of services and information among county departments of social services, local law enforcement agencies, the court system, guardian ad litem programs, and other agencies as deemed appropriate by the Department. The Department shall determine the number of sites that may participate in the pilot program and include regions that are geographically diverse.

The Division shall make a progress report on the pilot program to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than March 1, 2015. The Division shall make a final report of its findings and recommendations on the pilot program to the Joint Legislative Oversight Committee on Health and Human Services no later than March 1, 2016.

SECTION 12C.1.(f)  Statewide Evaluation. – Of the funds appropriated in this act to the Department of Health and Human Services, Division of Social Services, the sum of seven hundred thousand dollars ($700,000) shall be used to provide for a comprehensive, statewide evaluation of the State's child protective services system. The Division of Social Services shall contract for an independent evaluation of the system, which evaluation shall include developing recommendations on the following:

(1)        The performance of county departments of social services as related to child protective services.

(2)        Caseload sizes.

(3)        The administrative structure of the child protective services system in the State.

(4)        Adequacy of funding.

(5)        Child protective services' worker turnover.

(6)        Monitoring and oversight of county departments of social services.

The Division shall report the findings and recommendations from the evaluation to the Joint Legislative Oversight Committee on Health and Human Services no later than January 1, 2016.

SECTION 12C.1.(g)  Study Conflicts of Interest/Public Guardianship and Child Protective Services. – The Department of Health and Human Services, Division of Social Services, shall study the issue of conflicts of interest in child welfare cases as related to public guardianship. In conducting the study, the Department shall consider the following regarding addressing potential conflicts of interest:

(1)        Creating internal firewalls to prevent information sharing and influence among staff members involved with the conflicting cases.

(2)        Creating a formal or an informal "buddy system" allowing a county with a conflict to refer a case to a neighboring county.

(3)        Referring the guardianship to a corporate guardian until the child welfare case is resolved.

(4)        Having the Department assume responsibility for either the guardianship or the child welfare case.

(5)        Recommending legislation to permit the clerk the option to appoint a public agency or official, other than the Director of Social Services, to serve as a disinterested public agent in exceptional circumstances only.

(6)        Any other issues specific to this matter the Department deems appropriate.

The Division shall submit a final report of its findings and recommendations to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than February 1, 2015.

 

Clarify Work First Family Assistance Income Levels

SECTION 12C.2.  G.S. 108A‑27.01 reads as rewritten:

"§ 108A‑27.01.  Income eligibility and payment level for Work First Family Assistance.

The maximum net family annual income eligibility standards for Work First Family Assistance are the same standards of need for eligibility for the categorically needy under the Medicaid Program.as provided in the table below. The payment level for Work First Family Assistance shall be fifty percent (50%) of the standard of need."

Family                                     Income

Size                                         Level

1                                        $ 4,344

2                                           5,664

3                                           6,528

4                                           7,128

5                                           7,776

6                                           8,376

7                                           8,952

8                                           9,256"

 

EASTERN BAND OF CHEROKEE INDIANS/ASSUMPTION BY TRIBE OF VARIOUS HUMAN SERVICES

SECTION 12C.3.(a)  The purpose of this section is to enable the Eastern Band of Cherokee Indians to assume responsibility for certain social services, healthcare benefit programs, ancillary services, including Medicaid administrative and service related functions, and related reimbursements.

SECTION 12C.3.(b)  Beginning October 1, 2014, or upon federal approval, the Eastern Band of Cherokee Indians may begin assuming the responsibility for the Supplemental Nutrition Assistance Program (SNAP). When the Eastern Band of Cherokee Indians assumes responsibility for SNAP, then any State statutes, portions of statutes, or rules relating to the provision of social services regarding SNAP services by a county department of social services for members of the Eastern Band of Cherokee Indians shall no longer apply to the Tribe, and the functions, administration, and funding requirements relating to those social services are thereby delegated to the Eastern Band of Cherokee Indians.

No later than October 1, 2015, and with the exception of services related to special assistance, childcare, and adult care homes, the Eastern Band of Cherokee Indians may assume responsibility for other programs as described under G.S. 108A‑25(e), enacted in subsection (c) of this section. When the Eastern Band of Cherokee Indians assumes responsibility for any of those other programs, then any State statutes, portions of statutes, or rules relating to the provision of services for those programs by a county department of social services for members of the Eastern Band of Cherokee Indians shall no longer apply to the Tribe, and the functions, administration, and funding requirements relating to those programs are thereby delegated to the Eastern Band of Cherokee Indians.

SECTION 12C.3.(c)  G.S. 108A‑25 reads as rewritten:

"§ 108A‑25.  Creation of programs.programs; assumption by federally recognized tribe of programs.

(e)        When any federally recognized Native American tribe within the State assumes responsibility for any social services, Medicaid and NC Health Choice healthcare benefit programs, and ancillary services, including Medicaid administrative and service functions, that are otherwise the responsibility of a county under State law, then, notwithstanding any other provision of law, the county shall be relieved of the legal responsibility related to the tribe's assumption of those services."

SECTION 12C.3.(d)  G.S. 108A‑87 reads as rewritten:

"§ 108A‑87.  Allocation of nonfederal shares.

(a)        The nonfederal share of the annual cost of each public assistance and social services program and related administrative costs may be divided between the State and counties as determined by the General Assembly and in a manner consistent with federal laws and regulations.

(b)        The nonfederal share of the annual cost of public assistance and social services programs and related administrative costs provided to Indians living on federal reservations held in trust by the United States on their behalf shall be borne entirely by the State.

(c)        Notwithstanding subsections (a) and (b) of this section, when the Eastern Band of Cherokee Indians assumes responsibility for a program described under G.S. 108A-25(e), the following shall occur:

(1)        Nonfederal matching funds designated to Jackson and Swain counties to serve the Eastern Band of Cherokee Indians for that program previously borne by the State shall be allocated directly to the Eastern Band of Cherokee Indians rather than to those counties.

(2)        Any portion of nonfederal matching funds borne by counties for public assistance and social services programs and related administrative costs shall be borne by the Eastern Band of Cherokee Indians."

SECTION 12C.3.(e)  No later than October 1, 2014, the Department of Health and Human Services, Division of Medical Assistance, shall submit to the Centers for Medicare and Medicaid Services (CMS) Medicaid and NC Health Choice state plan amendments and Medicaid waivers necessary to achieve the following:

(1)        To effectuate the changes required by this section.

(2)        To address the healthcare needs identified in community health assessments and plans conducted by the Eastern Band of Cherokee Indians, provided that changes to Medicaid and NC Health Choice services made by the state plan amendments or waivers will be one hundred percent (100%) federally funded. If any state plan amendments or waivers authorized by this subdivision will increase the state share of administrative or other costs, the Department shall report the anticipated increased costs to the Joint Legislative Oversight Committee on Health and Human Services.

The state plan amendments and waivers authorized by this section shall have an effective date no later than October 1, 2015.

 

SUBPART XII‑D. DIVISION OF AGING AND ADULT SERVICES

 

CLARIFICATION OF ELIGIBILITY FOR STATE‑COUNTY SPECIAL ASSISTANCE PROGRAM

SECTION 12D.1.(a)  G.S. 108A‑41(b) reads as rewritten:

"(b)      Assistance shall be granted to any person who:who meets all of the following criteria:

(1)        Is one of the following:

a.         65 years of age and older, is betweenor older.

b.         Between the ages of 18 and 65, and is permanently and totally disabled or is legally blind pursuant to G.S. 111‑11; andG.S. 111‑11.

(2)        Has insufficient income or other resources to provide a reasonable subsistence compatible with decency and health as determined by the rules and regulations of the Social Services Commission; andCommission.

(3)        Is one of the following:

a.         A resident of North Carolina for at least 90 days immediately prior to receiving this assistance;assistance.

b.         A person coming to North Carolina to join a close relative who has resided in North Carolina for at least 180 consecutive days immediately prior to the person's application. The close relative shall furnish verification of his or her residency to the local department of social services at the time the applicant applies for special assistance. As used in this sub‑subdivision, a close relative is the person's parent, grandparent, brother, sister, spouse, or child; orchild.

c.         A person discharged from a State facility who was a patient in the facility as a result of an interstate mental health compact. As used in this sub‑subdivision the term State facility is a facility listed under G.S. 122C‑181."

 

STATE‑COUNTY SHARE OF COSTS FOR SPECIAL ASSISTANCE PROGRAM

SECTION 12D.2.  G.S. 143B‑139.5 reads as rewritten:

"§ 143B‑139.5.  Department of Health and Human Services; adult care State/county share of costs; maintenance of State/county budget allocations costs for State‑County Special Assistance programs.

State funds available to the Department of Health and Human Services shall pay fifty percent (50%), and the counties shall pay fifty percent (50%) of the authorized rates for care in adult care homes including area mental health agency‑operated or contracted‑group homes. The Department shall maintain the State's appropriation to the State‑County Special Assistance program at one hundred percent (100%) of the State certified budget enacted by the General Assembly for the 2012‑2013 fiscal year. The Department shall use these appropriated funds for the State's appropriation to the State‑County Special Assistance program, program for this program, for the State‑County Special Assistance in‑home program, and for rental assistance. Each county department of social services shall maintain its allocation to the State‑County Special Assistance program at one hundred percent (100%) of the county funds budgeted for this program for the 2011‑2012 fiscal year. Each county shall use these county funds budgeted for the State‑County Special Assistance program, program for this program, for the State‑County Special Assistance in‑home program, and for rental assistance."

 

EXAMINATION OF WAYS TO IMPROVE THE PUBLIC GUARDIANSHIP SYSTEM

SECTION 12D.3.(a)  The Department of Health and Human Services (Department), Division of Aging and Adult Services, shall collaborate with the Administrative Office of the Courts to develop a plan regarding the Department's evaluation of complaints pertaining to wards under the care of publicly funded guardians in order to ensure that, in addition to current requirements, the complaint process incorporates a face‑to‑face observation of the ward, an interview with the ward, or both. The plan shall include a requirement that an individual with experience in understanding the unique needs and abilities of the ward be assigned to conduct the observation or interview.

SECTION 12D.3.(b)  The Department shall continue utilizing existing safeguards regarding guardians as paid service providers. In addition, the Division of Aging and Adult Services shall consult with the clerks of superior court, local management entities that have been approved as managed care organizations, the North Carolina Bar Association Section on Elder Law, and any other interested groups to develop a model plan for transitioning a ward to an alternative guardianship arrangement when an individual guardian of the person becomes unable or unwilling to serve. The model plan shall focus on ways to prevent the appointment of a public guardian.

SECTION 12D.3.(c)  The Department shall continue to study whether utilization of care coordination services would provide needed oversight to safeguard against conflicts of interest when guardians serve as paid providers.

SECTION 12D.3.(d)  The Department shall submit a final report of its findings and recommendations for each of the issues described in subsections (a) through (c) of this section to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division no later than October 1, 2014.

 

STATUS REPORTS FILED BY CORPORATIONS OR DISINTERESTED PUBLIC AGENTS SERVING AS GUARDIANS FOR INCOMPETENT WARDS

SECTION 12D.4.(a)  G.S. 35A‑1202(14) reads as rewritten:

"(14)    "Status report" means the report required by G.S. 35A‑1242 to be filed by the general guardian or guardian of the person. A status report shall include a report of a recent medical and dental examination of the ward by one or more physicians or dentists, a report on the guardian's performance of the duties set forth in this Chapter and in the clerk's order appointing the guardian, and a report on the ward's condition, needs, and development. The clerk may direct that the report contain other or different information. The report may also contain, without limitation, reports of mental health or mental retardation professionals, psychologists, social workers, persons in loco parentis, a member of a multidisciplinary evaluation team, a designated agency, a disinterested public agent or agency, a guardian ad litem, a guardian of the estate, an interim guardian, a successor guardian, an officer, official, employee or agent of the Department of Health and Human Services, or any other interested persons including, if applicable to the ward's situation, group home parents or supervisors, employers, members of the staff of a treatment facility, or foster parents."

SECTION 12D.4.(b)  G.S. 35A‑1242 reads as rewritten:

"§ 35A‑1242.  Status reports for incompetent wards.

(a)        Any corporation or disinterested public agent that is guardian of the person for an incompetent person, within six months after being appointed, shall file an initial status report with the designated agency, if there is one, or with the clerk. the clerk and submit a copy of the initial status report to the designated agency, if there is one. Such guardian shall file a second status report with the designated agency or the clerk one year after being appointed, and subsequent reports annually thereafter. The clerk may order any other guardian of the person to file status reports. If a guardian required by this section to file a status report is employed by the designated agency, the guardian shall file any required status report with both the designated agency and the clerk.the clerk and submit a copy of the status report to the designated agency.

(a1)      Each status report shall include all of the following:

(1)        A report or summary of recent medical and dental examinations of the ward by one or more physicians and dentists. In instances when the guardian has made diligent but unsuccessful attempts to secure this information, the guardian shall include in the status report an explanation and documentation of all actions taken to attempt to secure this information.

(2)        A report on the guardian's performance of the duties set forth in this Chapter and in the clerk's order appointing the guardian.

(3)        A report on the ward's residence, education, employment, and rehabilitation or habilitation.

(4)        A report of the guardian's efforts to restore competency.

(5)        A report of the guardian's efforts to seek alternatives to guardianship.

(6)        If the guardian is a disinterested public agent or corporation, a report of the efforts to identify alternative guardians.

(7)        The guardian's recommendations for implementing a more limited guardianship, preserving for the ward the opportunity to exercise rights that are within the ward's comprehension and judgment.

(8)        Any additional reports or information required by the clerk.

(a2)      The guardian may include in each status report additional information pertaining to the ward's best interests.

(b)        Each status report shall be filed (i) under the guardian's oath or affirmation that the report is complete and accurate so far as he the guardian is informed and can determine.determine or (ii) with the signature of a disinterested, competent witness to a statement by the guardian that the report is complete and accurate so far as the guardian is informed and can determine. Status reports filed with the signature of a disinterested, competent witness shall include the full name, address, and telephone number of the witness.

(b1)      The clerk shall make status reports submitted by corporations or disinterested public agents available to the Director, or the Director's designee, of the Division of Aging and Adult Services within the Department of Health and Human Services. The Director, or the Director's designee, shall review the status reports in connection with the Department's regular program of oversight for these categories of guardians.

(c)        A clerk or designated agency that receives a status report shall not make the status report available to anyone other than the guardian, the ward, the court, or State or local human resource services agencies providing services to the ward.

(d)        The clerk, on the clerk's own motion, or any interested party, may file a motion in the cause pursuant to G.S. 35A‑1207 with the clerk in the county where the guardianship is filed to request modification of the order appointing the guardian or guardians or for consideration of any matters contained in the status report."

SECTION 12D.4.(c)  This section becomes effective October 1, 2014.

 

Development of Strategic State Plan for Alzheimer's Disease

SECTION 12D.5.  G.S. 143B‑181.1 is amended by adding a new subdivision to read:

"(13)    To develop a strategic State plan for Alzheimer's disease. The plan shall address ways to improve at least all of the following with respect to Alzheimer's disease:

a.         Statewide awareness and education.

b.         Early detection and diagnosis.

c.         Care coordination.

d.         Quality of care.

e.         Health care system capacity.

f.          Training for health care professionals.

g.         Access to treatment.

h.         Home- and community-based services.

i.          Long‑term care.

j.          Caregiver assistance.

k.         Research.

l.          Brain health.

m.        Data collection.

n.         Public safety and safety‑related needs of individuals with Alzheimer's disease.

o.         Legal protections for individuals living with Alzheimer's disease and their caregivers.

p.         State policies to assist individuals with Alzheimer's disease and their families."

 

Reinstatement of the Volunteer development program as a service CATEGORY under the Home and Community Care Block Grant

SECTION 12D.6.  The Department of Health and Human Services, Division of Aging and Adult Services, shall reinstate the Volunteer Development Program as a service category under the Home and Community Care Block Grant. Counties may elect to use this program to provide services to older adults from funds received under the Home and Community Care Block Grant.

 

SUBPART XII‑E. DIVISION OF PUBLIC HEALTH

 

CHILDREN'S DEVELOPMENTAL SERVICES AGENCIES

SECTION 12E.1.  Section 12E.4 of S.L. 2013‑360 reads as rewritten:

"SECTION 12E.4.  In The Department of Health and Human Services, Division of Public Health, shall explore all options in order to achieve the reduced amount of State funds appropriated in this act for the Children's Developmental Service Agencies (CDSAs) program, the Department of Health and Human Services, Division of Public Health, may close up to four CDSAs, effective July 1, 2014. The Department shall retain the CDSA located in the City of Morganton and the CDSAs with the highest caseloads of children residing in rural and medically underserved areas. If the Department elects to close one or more CDSAs pursuant to this section, it program. The Department shall submit a report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division no later than March 1, 2014,March 1, 2015, identifying the CDSAs selected for closure.actions implemented by the Department to achieve this reduction."

 

INCREASED FEE FOR PRIVATE WELL-WATER TESTING

SECTION 12E.3.(a)  G.S. 130A‑5(16) reads as rewritten:

"(16)    To charge a fee of up to fifty‑five dollars ($55.00) seventy‑four dollars ($74.00) for analyzing private well‑water samples sent to the State Laboratory of Public Health by local health departments. The fee shall be imposed only for analyzing samples from newly constructed and existing wells. The fee shall be computed annually by the Director of the State Laboratory of Public Health by analyzing the previous year's testing at the State Laboratory of Public Health, and applying the amount of the total cost of the private well‑water testing, minus State appropriations that support this effort. The fee includes the charge for the private well‑water panel test kit."

SECTION 12E.3.(b)  Subsection (a) of this section becomes effective July 1, 2014, and applies to private well‑water samples analyzed on or after that date.

SECTION 12E.3.(c)  The Department of Health and Human Services, Division of Public Health, shall, in consultation with local health departments and the Department of Environment and Natural Resources, study options for reducing or waiving the private well‑water testing fee established in subsection (a) of this section for households with incomes at or below three hundred percent (300%) of the current federal poverty level. The Department shall report its findings and recommendations, including any recommended legislation, to the Joint Legislative Oversight Committee on Health and Human Services, the Environmental Review Commission, and the Fiscal Research Division by December 1, 2014.

 

Operational Efficiencies for Office of the Chief Medical Examiner

SECTION 12E.6.(a)  G.S. 130A‑382 reads as rewritten:

"§ 130A‑382.  County medical examiners; appointment; term of office; vacancies.

One or more county medical examiners for each county shall be appointed by the Chief Medical ExaminerThe Chief Medical Examiner shall appoint one or more county medical examiners for each county for a three‑year term. County medical examiners shall be appointed from a list of physicians licensed to practice medicine in this State submitted by the medical society of the county in which the appointment is to be made. If no names are submitted by the society, the Chief Medical Examiner shall appoint one or more medical examiners from physicians in the county licensed to practice medicine in this State. In the event no licensed physician in a county accepts an appointment, the Chief Medical Examiner may appoint as acting county medical examiner one or more physicians licensed to practice medicine in this State from other counties, a licensed physician assistant,a nurse, a coroner, or an individual who has taken an approved course of training as required by the Chief Medical Examiner. The acting county medical examiner shall have all the duties and authority of the physician medical examiner except to perform autopsies.In appointing medical examiners for each county, the Chief Medical Examiner shall give preference to physicians licensed to practice medicine in this State but may also appoint licensed physician assistants, nurse practitioners, nurses, coroners, or emergency medical technician paramedics. A medical examiner may serve more than one county. The Chief Medical Examiner may take jurisdiction in any case or appoint another medical examiner to do so."

SECTION 12E.6.(b)  By December 1, 2014, the Department of Health and Human Services, Division of Public Health, shall study and report to the Joint Legislative Oversight Committee on Health and Human Services on the adequacy of the current fee paid by the State and counties (i) pursuant to G.S. 130A‑387 for investigations and reports and (ii) pursuant to G.S. 130A‑389 for autopsies. The report due under this subsection shall include recommendations for any fee increase deemed necessary by the Department as well as an explanation and documentation to support the recommended fee increase.

SECTION 12E.6.(c)  A portion of the funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, for the Office of the Chief Medical Examiner for the 2014‑2015 fiscal year shall be used by the Department to establish a system of oversight to achieve operational efficiencies and improve quality assurance with respect to postmortem medicolegal examinations conducted under the authority of the Office of the Chief Medical Examiner pursuant to Part 1 of Article 16 of Chapter 130A of the General Statutes. In establishing the system of oversight required by this subsection, the Department shall develop and implement uniform protocols for conducting postmortem medicolegal examinations in accordance with established best practices for these examinations.

 

Adjust Reporting Date for Diabetes Coordination Report

SECTION 12E.7.  G.S. 130A‑221.1(b) reads as rewritten:

"(b)      On or before December January 1 of each even‑numberedodd-numbered year, the entities referenced in subsection (a) of this section shall collectively submit a report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division. The report shall provide the following:

(1)        An assessment of the financial impact that each type of diabetes has on each entity and collectively on the State. This assessment shall include: the number of individuals with diabetes served by the entity, the cost of diabetes prevention and control programs implemented by the entity, the financial toll or impact diabetes and related complications places on the program, and the financial toll or impact diabetes and related complications places on each program in comparison to other chronic diseases and conditions.

(2)        A description and an assessment of the effectiveness of each entity's programs and activities implemented to prevent and control diabetes. For each program and activity, the assessment shall document the source and amount of funding provided to the entity, including funding provided by the State.

(3)        A description of the level of coordination that exists among the entities referenced in subsection (a) of this section, as it relates to activities, programs, and messaging to manage, treat, and prevent all types of diabetes and the complications from diabetes.

(4)        The development of and revisions to detailed action plans for preventing and controlling diabetes and related complications. The plans shall identify proposed action steps to reduce the impact of diabetes, pre‑diabetes, and related diabetic complications; identify expected outcomes for each action step; and establish benchmarks for preventing and controlling diabetes.

(5)        A detailed budget identifying needs, costs, and resources required to implement the plans identified in subdivision (4) of this subsection, including a list of actionable items for consideration by the Committee."

 

FOOD PROTECTION PROGRAM BUDGET REALIGNMENT

SECTION 12E.8.  Notwithstanding any other provision of law, the four hundred thousand dollars ($400,000) that is appropriated under this act for aid to counties for local food and lodging programs shall be retained by the State beginning with the 2014‑2015 fiscal year, to pay for the costs to operate the State elements of the food and lodging program, which was transferred to the Department of Health and Human Services pursuant to Section 13.3(d) of S.L. 2011‑145.

 

TRANSFER OF SUMMER FOOD SERVICE PROGRAM TO DEPARTMENT OF PUBLIC INSTRUCTION

SECTION 12E.9.  The North Carolina Summer Food Service Program is hereby transferred from the Division of Public Health, Department of Health and Human Services, to the Department of Public Instruction, by a Type I transfer, as defined in G.S. 143A‑6.

 

SUBPART XII‑F. DIVISION OF MH/DD/SAS AND STATE OPERATED HEALTHCARE FACILITIES

 

TRAUMATIC BRAIN INJURY FUNDING

SECTION 12F.1.  Of the funds appropriated to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2014‑2015 fiscal year, the sum of two million three hundred seventy‑three thousand eighty‑six dollars ($2,373,086) shall be used exclusively to support traumatic brain injury (TBI) services as follows:

(1)        The sum of three hundred fifty‑nine thousand two hundred eighteen dollars ($359,218) shall be used to fund contracts with the Brain Injury Association of North Carolina, Carolinas Rehabilitation, or other appropriate service providers.

(2)        The sum of seven hundred ninety‑six thousand nine hundred thirty‑four dollars ($796,934) shall be used to support residential programs across the State that are specifically designed to serve individuals with TBI.

(3)        The sum of one million two hundred sixteen thousand nine hundred thirty‑four dollars ($1,216,934) shall be used to support requests submitted by individual consumers for assistance with residential support services, home modifications, transportation, and other requests deemed necessary by the consumer's local management entity and primary care physician.

 

REPORT ON STRATEGIES FOR IMPROVING MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES

SECTION 12F.3.(a)  The Department of Health and Human Services (Department) shall submit a report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division by November 1, 2014, that includes all of the following components:

(1)        A strategy for improving communication and coordination among all divisions within the Department that administer funds or programs related to the delivery of behavioral health services, especially regarding the most appropriate and efficient uses of public and private inpatient behavioral health services. The Department shall include as part of its strategy a process to address shortages and deficiencies identified in the annual State Medical Facilities Plan.

(2)        A plan developed in collaboration with local management entities that have been approved to operate as managed care organizations (LME/MCOs) to increase access to, and availability of, community‑based outpatient crisis and emergency services for the stabilization and treatment of individuals experiencing mental health, developmental disability, or substance abuse crises in settings other than local hospital emergency departments and State‑operated psychiatric hospitals.

(3)        A plan to ensure that a comprehensive array of outpatient treatment and crisis prevention and intervention services are available and accessible to children, adolescents, and adults in every LME/MCO catchment area. The plan shall ensure that an adequate number of crisis stabilization units are available in each LME/MCO catchment area. The plan shall include specific strategies for increasing the number of Facility‑Based Crisis Programs for Children and Adolescents in high‑need areas of the State and the availability of Professional Treatment Services in Facility‑Based Crisis Programs for Children and Adolescents as defined in section 4.b.(8)(k) of the current Medicaid State Plan. The plan shall further describe in detail all actions necessary to implement those strategies, including a description of how the Department's funds will be utilized.

(4)        Findings and recommendations for increasing the inventory of inpatient psychiatric and substance abuse services within the State. In developing its findings and recommendations, the Department shall examine the advantages and disadvantages of increasing this inventory of services through (i) additional State‑operated facilities, (ii) community hospital beds, (iii) United States Veterans Administration beds, and (iv) community‑based services that decrease the need for inpatient treatment.

(5)        A plan for offering hospitals and other entities incentives to apply for licenses to begin offering new inpatient behavioral health services, or to begin operating existing licensed beds that are currently unstaffed, or both.

(6)        Recommendations on the use of the existing Cherry Hospital buildings after patients and operations are relocated to the replacement facility. In developing its findings and recommendations, the Department shall conduct a study that includes development of an inventory and assessment of the condition of every building located on the existing Cherry Hospital campus. The study shall include an examination of the feasibility of using the existing Cherry Hospital facility to provide community‑based and facility‑based behavioral health services, including additional child and adolescent inpatient beds.

(7)        A method by which the Division of Health Service Regulation can begin tracking and separately reporting no later than January 1, 2015, on the inventory of inpatient behavioral health beds for children ages six through 12 and for adolescents over age 12.

(8)        A status update on the implementation of each component of the 2008 Mental Health Commission Workforce Development Plan.

SECTION 12F.3.(b)  The Department shall submit a report to the House Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division by March 1, 2015, that includes all of the following components:

(1)        A comprehensive strategy, developed in collaboration with stakeholders deemed relevant by the Department, to address the dearth of licensed child and adolescent inpatient psychiatric beds in facilities throughout the State. The strategy shall do all of the following:

a.         Ensure that an adequate inventory of child and adolescent beds are available in each LME/MCO catchment area.

b.         Include the development and implementation of a child and adolescent psychiatric bed registry to provide real‑time information on the number of beds available at each licensed and nonlicensed facility in the State.

c.         Include recommendations as to any regulatory changes necessary to ensure safety and quality in Facility‑Based Crisis Programs for Children and Adolescents.

(2)        Recommendations for meaningful outcome measures to be implemented by State‑operated alcohol and drug abuse treatment centers to assess the impact of inpatient treatment on an individual's substance use following discharge from a State‑operated alcohol and drug abuse treatment center. The recommendations shall include a proposed time line for implementation of these outcome measures.

 

Report and Plan Regarding Budget Shortfalls within the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

SECTION 12F.4.  By December 1, 2014, the Department of Health and Human Services shall provide a report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division on the budget shortfalls within the Department as a result of liabilities associated with (i) the provision of community services for the treatment of mental illness, developmental disabilities, and substance abuse disorders and (ii) the State‑operated health care facilities under the jurisdiction of the Department. The report shall include a detailed explanation of all of the following:

(1)        A history of the annual budget shortfalls since 2008 and all the contributing factors.

(2)        An explanation of actions taken by the Department and the Office of State Budget and Management to address these budget shortfalls.

(3)        A plan for eliminating these budget shortfalls.

 

Funds Appropriated to Implement Recommendations of the Joint Legislative Oversight Committee on Health and Human Services Regarding Behavioral Health Crisis Services

SECTION 12F.5.(a)  The following definitions apply in this section:

(1)        Facility‑Based Crisis Center. – A 24‑hour residential facility licensed under 10A NCAC 27G .5000 to provide facility‑based crisis service as described in 10A NCAC 27G .5001.

(2)        Secretary. – The Secretary of the North Carolina Department of Health and Human Services.

(3)        Behavioral Health Urgent Care Center. – An outpatient facility that provides walk‑in crisis assessment, referral, and treatment by licensed behavioral health professionals with prescriptive authority to individuals with an urgent or emergent need for mental health, intellectual or developmental disabilities, or substance abuse services.

SECTION 12F.5.(b)  From funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for community services for the 2014‑2015 fiscal year, the Division shall use five million twenty‑eight thousand six hundred seventy‑seven dollars ($5,028,677) in recurring funds to accomplish the following:

(1)        To increase the number of co-located or operationally linked behavioral health urgent care centers and facility‑based crisis centers.

(2)        To increase the number of facility‑based crisis centers designated by the Secretary as facilities for the custody and treatment of involuntary clients pursuant to G.S. 122C‑252 and 10A NCAC 26C .0101. The Department shall give priority to areas of the State experiencing a shortage of these types of facilities.

(3)        To provide reimbursement for services provided by facility‑based crisis centers.

(4)        To establish facility‑based crisis centers for children and adolescents.

 

SUBPART XII‑G. DIVISION OF HEALTH SERVICE REGULATION

 

TECHNICAL CORRECTION TO CERTIFICATE OF NEED EXEMPTION FOR REPLACEMENT OF PREVIOUSLY APPROVED EQUIPMENT

SECTION 12G.1.(a)  G.S. 131E‑184(f) reads as rewritten:

"(f)       The Department shall exempt from certificate of need review the purchase of any replacement equipment that exceeds the two million dollar ($2,000,000) threshold set forth in G.S. 131E‑176(22) G.S. 131E‑176(22a) if all of the following conditions are met:

(1)        The equipment being replaced is located on the main campus.

(2)        The Department has previously issued a certificate of need for the equipment being replaced. This subdivision does not apply if a certificate of need was not required at the time the equipment being replaced was initially purchased by the licensed health service facility.

(3)        The licensed health service facility proposing to purchase the replacement equipment shall provide prior written notice to the Department, along with supporting documentation to demonstrate that it meets the exemption criteria of this subsection."

SECTION 12G.1.(b)  This section is effective when it becomes law.

 

STUDY CONCERNING EXPANSION OF HEALTH CARE COST REDUCTION AND TRANSPARENCY ACT TO ADDITIONAL HEALTH CARE PROVIDERS

SECTION 12G.3.  By December 1, 2014, the Department of Health and Human Services shall study and submit a written report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division summarizing its recommendations for extending North Carolina's Health Care Cost Reduction and Transparency Act of 2013 (the Act) to additional health care providers. The report shall identify all of the following:

(1)        Recommended categories of additional health care providers that should be subject to the requirements of the Act.

(2)        Recommended data to be collected for the purpose of transparency from each category of identified health care providers.

(3)        Recommended exemptions, if any, from certain requirements of the Act for each category of identified health care providers.

(4)        Recommended effective dates for the applicability of the Act to each category of identified health care providers.

 

MORATORIUM ON HOME CARE AGENCY LICENSES FOR IN‑HOME AIDE SERVICES

SECTION 12G.4.  For the period commencing July 1, 2014, and ending July 1, 2016, and notwithstanding the provisions of the Home Care Agency Licensure Act set forth in Part 3 of Article 6 of Chapter 131E of the General Statutes or any rules adopted pursuant to that Part, the Department of Health and Human Services shall not issue any licenses for home care agencies as defined in G.S. 131E‑136(2) that intend to offer in‑home aide services. This prohibition does not apply to companion and sitter services and shall not restrict the Department from doing any of the following:

(1)        Issuing a license to a certified home health agency as defined in G.S. 131E‑176(12) that intends to offer in‑home aide services.

(2)        Issuing a license to an agency that needs a new license for an existing home care agency being acquired.

(3)        Issuing a license for a new home care agency in any area of the State upon a determination by the Secretary of the Department of Health and Human Services that increased access to care is necessary in that area.

 

Moratorium on Special Care Unit Licenses

SECTION 12G.5.  Section 12G.1(a) of S.L. 2013‑360 reads as rewritten:

"SECTION 12G.1.(a)  For the period beginning July 31, 2013, and ending July 1, 2016,July 1, 2015, the Department of Health and Human Services, Division of Health Service Regulation (Department), shall not issue any licenses for special care units as defined in G.S. 131D‑4.6 and G.S. 131E‑114. This prohibition shall not restrict the Department from doing any of the following:

(1)        Issuing a license to a facility that is acquiring an existing special care unit.

(2)        Issuing a license for a special care unit in any area of the State upon a determination by the Secretary of the Department of Health and Human Services that increased access to this type of care is necessary in that area during the three‑yeartwo‑year moratorium imposed by this section.

(3)        Processing all completed applications for special care unit licenses received by the Division of Health Service Regulation along with the applicable license fee prior to June 1, 2013.

(4)        Issuing a license to a facility that was in possession of a certificate of need as of July 31, 2013, that included authorization to operate special care unit beds."

 

Prohibition on Youth Using Tanning Equipment

SECTION 12G.6.(a)  G.S. 104E‑9.1(a) reads as rewritten:

"(a)       Operators of tanning equipment and owners of tanning facilities subject to rules adopted pursuant to this Chapter shall comply with or ensure compliance with the following:

(1)        The operator shall provide to each consumer a warning statement that defines the potential hazards and consequences of exposure to ultraviolet radiation. Before allowing the consumer's initial use of the tanning equipment, the operator shall obtain the signature of the consumer on the warning statement acknowledging receipt of the warning.

(2)        The operator shall not allow a person 13 years and youngerunder 18 years of age to use tanning equipment without a written prescription from the person's medical physician specifying the nature of the medical condition requiring the treatment, the number of visits, and the time of exposure for each visit.equipment.

(3)        Neither an operator nor an owner shall claim or distribute promotional materials that claim that using tanning equipment is safe or free from risk or that using tanning equipment will result in medical or health benefits."

SECTION 12G.6.(b)  This section becomes effective October 1, 2014.

 

SUBPART XII‑H. DIVISION OF MEDICAL ASSISTANCE (MEDICAID)

 

Appropriation for Medicaid Reform to Be Used Solely for Medicaid Reform

SECTION 12H.1.  Funds appropriated elsewhere in this act to the Department of Health and Human Services, Division of Medical Assistance, for Medicaid reform may be used only for Medicaid reform and, notwithstanding the State Budget Act, may not be used for any other purpose, such as funding any shortfalls in the Medicaid program.

 

Reinstate Medicaid Annual Report

SECTION 12H.2.  The Department of Health and Human Services, Division of Medical Assistance, shall reinstate the publication of the Medicaid Annual Report and accompanying tables, which was discontinued after 2008. The Division shall publish the report and tables on its Web site and shall not publish copies in print.

 

Modify Intensive In-Home Service

SECTION 12H.4.  No later than October 1, 2014, the Department of Health and Human Services, Division of Medical Assistance, shall modify the service definition for the Intensive In‑Home Service to reflect a team‑to‑family ratio of one Intensive In‑Home team to 12 families for both the Medicaid and NC Health Choice programs.

 

Traumatic Brain Injury Waiver

SECTION 12H.6.  The Department of Health and Human Services, Division of Medical Assistance, and Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, in conjunction with the North Carolina Traumatic Brain Injury Advisory Council, shall design and draft a 1915(c) waiver to add a new service package for Medicaid eligibles with traumatic brain injury (TBI). This draft waiver may be based on an update to the 2010 report on a waiver to serve individuals with traumatic brain injury. The Department shall report the draft waiver, other findings, and any additional options to provide Medicaid services to those suffering from TBI to the House Appropriations Subcommittee on Health and Human Services and the Senate Appropriations Committee on Health and Human Services by February 1, 2015. The Department may submit drafts of the waiver to the Centers for Medicare and Medicaid Services (CMS) to solicit feedback but shall not submit the waiver for CMS approval until authorized by the General Assembly.

 

Drug Reimbursement Using Average Acquisition Cost

SECTION 12H.8.(a)  If federal drug pricing changes to use average acquisition cost for ingredients, then the Department of Health and Human Services, Division of Medical Assistance, shall, notwithstanding Section 12H.13(f) of S.L. 2013‑360, adjust the rate for dispensing drugs to offset the impact to providers of any such changes to using average acquisition cost. In adjusting the rates for dispensing drugs, the Department shall do the following:

(1)        Raise dispensing fees to make the shift to using average acquisition cost budget neutral.

(2)        Maintain a distinction between the dispensing fees for preferred and brand drugs.

Any actions taken under this subsection shall be reported (i) to the chairs of the House Appropriations Committee, the Senate Appropriations/Base Budget Committee, and the Joint Legislative Oversight Committee on Health and Human Services, (ii) to the Fiscal Research Division, and (iii) to the Office of State Budget and Management. Any State plan amendments required to implement this subsection shall not be subject to the 90 day prior submission requirement of G.S. 108A‑54.1A(e), as amended by Section 12H.21 of this act.

SECTION 12H.8.(b)  By August 1, 2015, the Department of Health and Human Services, Division of Medical Assistance, shall issue a request for proposals (RFP) for a contractor to perform a statewide drug dispensing fee study. The Department shall use the funds appropriated elsewhere in this budget for this study as the State share to draw down additional federal Medicaid funds for this study.

 

Substitution of Generic Drugs for Unavailable Preferred Drugs

SECTION 12H.8A.  If the Department of Health and Human Services, Division of Medical Assistance, finds that there are net General Fund savings to the Medicaid program from doing so, then the Division may allow a pharmacist to substitute and dispense a generic drug in place of a preferred drug without prior authorization, subject to all of the following being true:

(1)        The Division normally requires the dispensing of the preferred drug over the equivalent generic drug.

(2)        The pharmacist has not been able to acquire the preferred drug from at least two separate wholesalers within the two weeks prior to dispensing the generic substitute.

(3)        The pharmacist maintains records of the failed attempts to acquire the preferred drug. Such records shall be open to inspection and audit by the Division.

(4)        The prescriber has not indicated that the preferred drug is "medically necessary."

For purposes of this section, "savings to the Medicaid program" shall not be limited to savings within the prescription drug service area, but shall also include savings in other areas of the program such as savings from not having to send the prescription back to the prescriber for prior authorization of the generic substitution or savings from instances where missed doses may lead to negative and costly patient outcomes.

 

Contracted Study of Personal Care Services Options

SECTION 12H.10.  The Joint Legislative Oversight Committee on Health and Human Services shall engage a contractor to study issues related to reforming and redesigning personal care services (PCS) while meeting the State's obligations under the Americans with Disabilities Act and the United States Supreme Court's decision in Olmstead v. L.C. ex rel. Zimring, 527 U.S. 581 (1999). The study shall examine the following issues:

(1)        What categories of Medicaid recipients are currently receiving PCS, and in what settings are they being served?

(2)        What is the total number of Medicaid recipients receiving PCS in each category, and what is the anticipated growth in each category?

(3)        What is the current cost of serving Medicaid recipients in each setting, and specifically, the sources of public funding utilized to serve those individuals?

(4)        What alternative, more cost‑effective assistance models could be implemented for each category of Medicaid recipient?

(5)        Specifically, whether more cost‑effective assistance could be offered through the new 1915(i) State plan home‑ and community‑based services and 1915 waiver options for each category of Medicaid recipient.

(6)        Recommendations regarding what outcomes the redesigned program should be designed to achieve.

(7)        The impact of reforming and redesigning personal care services on appeals and litigation.

(8)        Other areas as deemed appropriate by the chairs of the Joint Legislative Oversight Committee on Health and Human Services.

The study shall also address the quality of resident care within adult care homes and the adequacy of State oversight of adult care homes, including inspections, procedures, and processes.

No later than December 1, 2015, the contractor shall report the results and recommendations of the study to the Joint Legislative Oversight Committee on Health and Human Services. The Department of Health and Human Services shall give the contractor full access to all data necessary to complete the study and the report. The Department of Health and Human Services shall make payments to the contractor hired by the Joint Legislative Oversight Committee on Health and Human Services from funds appropriated elsewhere in this budget for this contract as well as from federal Medicaid matching funds available for this contract.

 

Adult Care Home Cost Reporting

SECTION 12H.11.  The Department of Health and Human Services shall require compliance with the adult care home cost reporting requirements set forth in G.S. 131D‑4.2. The Department shall make available the data collected from the cost reporting in a character‑separated values (CSV) plain text format or other file format that may easily be imported into software used for spreadsheets, databases, and data analytics.

 

Study Regional Base Rates

SECTION 12H.12.  Section 12H.20(b) of S.L. 2013‑360 reads as rewritten:

"SECTION 12H.20.(b)  The Department of Health and Human Services, Division of Medical Assistance, shall replace study replacing the existing base rates for individual hospitals with new regional base rates for all hospitals within a given region. The Department shall consult with hospitals to define the regions and to identify appropriate regional differences in order to establish identify potential regional base rates. The new potential regional base rates shall do the following:

(1)        Maintain the same statewide total for the base rates for all hospitals as before the base rate revision, after first adjusting the statewide total based on the changes to rates made by subsection (a) of this section.

(2)        Ensure the sustainability of small rural hospitals, ensuring access to care.

The Division shall report its findings to the Joint Legislative Oversight Committee on Health and Human Services no later than December 1, 2014."

 

Supplemental Payments to Eligible Medical Professional Providers

SECTION 12H.13.(a)  Effective July 1, 2014, supplemental payments that increase reimbursement to the average commercial rate for certain eligible medical providers described in the Medicaid State Plan, Attachment 4.19‑B, Section 5, Pages 2 and 3, shall be modified as follows:

(1)        The number of eligible medical professional providers shall be limited as follows:

a.         418 with the East Carolina University (ECU) Brody School of Medicine.

b.         1,176 with the University of North Carolina at Chapel Hill (UNC) Faculty Physicians.

c.         14 with the UNC Hospitals Pediatric Clinic.

d.         75 with UNC Physicians Network.

e.         18 with Chatham Hospital.

(2)        Supplement payments shall not be made for services provided in Wake County.

The Department of Health and Human Services shall not make any other modifications to the portion of the Medicaid State Plan referenced in this section, except as provided herein.

SECTION 12H.13.(b)  Beginning on December 31, 2014, and annually thereafter, UNC and ECU shall submit an annual report based on their preceding fiscal year to the Joint Legislative Oversight Committee on Health and Human Services containing all of the following information for each individual provider for whom this supplemental payment is received:

(1)        For each service provided by the provider and for which the supplemental payment is received, the location where the service was provided, including county, municipality, and zip code.

(2)        The percentage of the provider's total time spent serving Medicaid recipients annually that is for services provided at locations other than the ECU Brody School of Medicine, the Firetower Medical Office, or the UNC School of Medicine.

(3)        The amount of Medicaid reimbursement for each service for which a supplemental payment was made for services provided by the provider.

(4)        On an annual basis, the percentage of the provider's time spent engaging in the following:

a.         Clinical patient care.

b.         Teaching.

c.         Research.

d.         Other activities.

SECTION 12H.13.(c)  The entities receiving the supplemental payments addressed in subsection (a) of this section shall transfer an amount to the Department of Health and Human Services, Division of Medical Assistance, sufficient to ensure that after reducing the transfer by twenty-five and nine-tenths percent (25.9%) there are funds for the State share necessary to make the supplemental payments. That twenty-five and nine-tenths percent (25.9%) shall be retained by the State for the Medicaid program.

SECTION 12H.13.(d)  Any State plan amendments required to implement this section shall not be subject to the 90‑day prior submission requirement of G.S. 108A‑54.1A(e).

 

Repeal Shared Savings Program; Maintain Certain Rate Reductions

SECTION 12H.14.(a)  All subsections of Section 12H.18 of S.L. 2013‑360, except for subsection (b), are repealed.

SECTION 12H.14.(b)  Section 12H.18(b) of S.L. 2013‑360 reads as rewritten:

"SECTION 12H.18.(b)  During the 2013‑2015 fiscal biennium, the Department of Health and Human Services shall withhold reduce by three percent (3%) of the payments for the following services rendered to Medicaid and NC Health Choice recipients on or after January 1, 2014:

Funds from payments withheld under this section that are budgeted to be shared with providers shall not revert to the General Fund."

SECTION 12H.14.(c)  Effective January 1, 2015, Section 12H.18(b) of S.L. 2013‑360, as amended by subsection (b) of this section, reads as rewritten:

"SECTION 12H.18.(b)  During the 2013‑2015 fiscal biennium, the Department of Health and Human Services shall reduce by three percent (3%) the payments for the following services rendered to Medicaid and NC Health Choice recipients on or after January 1, 2014:

(1)        Inpatient hospital.

(2)        Physician, excluding primary care until January 1, 2015.

(3)        Dental.

(4)        Optical services and supplies.

(5)        Podiatry.

(6)        Chiropractors.

(7)        Hearing aids.

(8)        Personal care services.

(9)        Nursing homes.

(10)      Adult care homes.

(11)      Dispensing drugs."

 

1915(c) Innovations Waiver Services Assessment

SECTION 12H.18.(a)  If (i) federal law or regulation is amended to allow the imposition of assessments on 1915(c) North Carolina Innovations Waiver (formerly Community Alternatives Program for Persons with Mental Retardation/Developmental Disabilities (CAP‑MR/DD)) services or such assessments are otherwise allowed by the Centers for Medicare & Medicaid Services (CMS) through waivers and (ii) the providers of such services are willing to participate in an assessment program, then the Department of Health and Human Services, Division of Medical Assistance, may implement a Medicaid assessment program for such services up to the maximum percentage allowed by federal regulation. The Department may retain up to sixty‑five percent (65%) of the amount from such an assessment program to support Medicaid expenditures. The Department shall amend contracts with local management entities that have been approved to operate as managed care organizations (LME/MCOs) to ensure that any assessment funds not retained by the Department are used to increase LME/MCO capitation rates and that the additional amounts are passed along to the providers of Innovations Waiver service providers through increased reimbursement rates.

SECTION 12H.18.(b)  The authorization provided to the Department under subsection (a) of this section to impose a new assessment program on Innovations Waiver services shall continue to exist until July 1, 2017. If an assessment program has not been established by July 1, 2017, then this section expires.

 

Implement CCNC Payment of PMPMs

SECTION 12H.19.  The Department of Health and Human Services, Division of Medical Assistance, shall implement the payment of per member per month (PMPM) payments to providers participating in Community Care of North Carolina (CCNC) programs by CCNC, as previously directed by Section 12H.22 of S.L. 2013‑360.

 

Primary Care Case Management for Dual Eligibles

SECTION 12H.20.(a)  The Department of Health and Human Services, Division of Medical Assistance, shall draft one or more waivers that will expand primary care case management and that are designed to accomplish the following:

(1)        Medicare and Medicaid dual eligibles shall be required to enroll in primary care case management to the maximum extent allowed by the Centers for Medicare and Medicaid Services (CMS).

(2)        Primary care case management shall be provided for enrolled dual eligibles.

(3)        Primary care case management for dual eligibles with a primary diagnosis of mental illness may be administered by the LME/MCOs.

The Department may submit drafts of the waivers to the Centers for Medicare and Medicaid Services (CMS) to solicit feedback but shall not submit the waivers for CMS approval until authorized by the General Assembly.

SECTION 12H.20.(b)  No later than March 1, 2015, the Department shall submit to the House Appropriations Subcommittee on Health and Human Services and the Senate Appropriations Committee on Health and Human Services a copy of the draft waivers and a report, which shall include the following:

(1)        The anticipated increase in number of dual eligibles that will enroll in primary care case management.

(2)        The costs associated with serving the increased number of enrolled dual eligibles.

(3)        The anticipated savings to the Medicaid program.

(4)        A detailed fiscal analysis supporting any calculation of anticipated savings.

 

Additional Notice on SPAs

SECTION 12H.21.(a)  G.S. 108A‑54.1A reads as rewritten:

"§ 108A‑54.1A.  Amendments to Medicaid State Plan and Medicaid Waivers.

(d)        No fewer than 10 days prior to submitting an amendment to the State Plan to the federal government, the Department shall post the amendment on its Web site and notify the members of the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division that the amendment has been posted. This requirement shall not apply to draft or proposed amendments submitted to the federal government for comments but not submitted for approval. The amendment shall remain posted on the Department's Web site at least until the plan has been approved, rejected, or withdrawn. If the authority for submitting the amendment to the State Plan is pursuant to subdivision (3), (4), (5), or (6) of subsection (b) of this section, then, prior to submitting an amendment to the federal government, the Department shall submit to the General Assembly members receiving notice under this subsection and to the Fiscal Research Division an explanation of the amendment, the need for the amendment, and the federal time limits required for implementation of the amendment.

(e)        The Department shall submit an amendment to the State Plan to the federal government by a date sufficient to provide the federal government adequate time to review and approve the amendment so the amendment may be effective by the date required by the directing authority in subsection (b) of this section. Additionally, if a change is made to the Medicaid program by the General Assembly and that change requires an amendment to the State Plan, then the amendment shall be submitted at least 90 days prior to the effective date of the change as provided in the legislation.

(f)         Any public notice required under 42 C.F.R. 447.205 shall, in addition to any other posting requirements under federal law, be posted on the Department's Web site. Upon posting such a public notice, the Department shall notify the members of the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division that the public notice has been posted. Public notices shall remain posted on the Department's Web site."

SECTION 12H.21.(b)  G.S. 108A‑55(c) reads as rewritten:

"(c)       The Department shall reimburse providers of services, equipment, or supplies under the Medical Assistance Program in the following amounts:

(1)        The amount approved by the Health Care Financing AdministrationCenters for Medicare & Medicaid Services (CMS) of the United States Department of Health and Human Services, if that AdministrationCMS approves an exact reimbursement amount;amount.

(2)        The amount determined by application of a method approved by the Health Care Financing AdministrationCenters for Medicare & Medicaid Services (CMS) of the United States Department of Health and Human Services, if that AdministrationCMS approves the method by which a reimbursement amount is determined, and not the exact amount.

The Department shall establish the methods by which reimbursement amounts are determined in accordance with Chapter 150B of the General Statutes. A change in a reimbursement amount becomes effective as of the date for which the change is approved by the Health Care Financing AdministrationCenters for Medicare & Medicaid Services (CMS) of the United States Department of Health and Human Services.The Department shall report to the Fiscal Research Division of the Legislative Services Office and to the Senate Appropriations Committee on Human Resources and the House of Representatives Appropriations Subcommittee on Human Resources or the Joint Legislative Oversight Committee on Health and Human Services on any change in a reimbursement amount at the same time as it sends out public notice of this change prior to presentation to the Health Care Financing Administration."

SECTION 12H.21.(c)  By repealing language in subsection (b) of this section related to giving to the General Assembly notice of a public notice, it is not the intent of the General Assembly to remove the required notice of the changes to reimbursement amounts for services, equipment, or supplies. Rather, it is the intent that those notices be given pursuant to G.S. 108A‑54.1A(f), rather than pursuant to both G.S. 108A‑54.1A(f) and G.S. 108A‑55(c).

SECTION 12H.21.(d)  This section becomes effective July 1, 2014, and the amendment to G.S. 108A‑54.1A(e) applies to State Plan Amendments with effective dates on or after October 1, 2014.

 

Comprehensive Program Integrity Contract

SECTION 12H.22.(a)  No later than March 1, 2015, the Department of Health and Human Services, Division of Medical Assistance, shall issue a request for proposals for one contract to become effective on September 1, 2015, for the following program integrity functions:

(1)        Postpayment reviews.

(2)        Data analytics.

(3)        Medical necessity reviews.

(4)        Investigation.

(5)        Recovery Audit Contracts.

(6)        Prepayment review.

SECTION 12H.22.(b)  The Department of Health and Human Services shall not enter into any contract, other than the comprehensive contract allowed under subsection (a) of this section, involving the program integrity functions listed in subsection (a) of this section that would have a termination date after September 1, 2015.

SECTION 12H.22.(c)  This section shall not apply to program integrity functions performed by LME/MCOs.

 

Clarify Notice of Extrapolated Overpayments

SECTION 12H.26.(a)  G.S. 108C‑5(i) reads as rewritten:

"(i)        Prior to extrapolating the results of any audits, the Department shall demonstrate and inform the provider that (i) the provider failed to substantially comply with the requirements of State or federal law or regulation or (ii) the Department has a credible allegation of fraud concerning the provider. Nothing in the subsection shall be construed to prohibit the Department from identifying the extrapolated overpayment amount in the same notice that meets the requirements of this subsection."

SECTION 12H.26.(b)  G.S. 108C‑5 is amended by adding a new subsection to read:

"(t)       Nothing in this Chapter shall be construed to prohibit the Department from utilizing a contractor to send notices to providers on behalf of the Department."

 

Participation in Mediation in Recipient Appeals

SECTION 12H.27.(a)  G.S. 108A‑70.9B reads as rewritten:

"§ 108A‑70.9B.  Contested Medicaid cases.

(c)        Mediation. – Upon receipt of an appeal request form as provided by G.S. 108A‑70.9A(e) or other clear request for a hearing by a Medicaid recipient, OAH shall immediately notify the Mediation Network of North Carolina, which shall contact the recipient within five days to offer mediation in an attempt to resolve the dispute. If mediation is accepted, the mediation must be completed within 25 days of submission of the request for appeal. Upon completion of the mediation, the mediator shall inform OAH and the Department within 24 hours of the resolution by facsimile or electronic messaging. If the parties have resolved matters in the mediation, OAH shall dismiss the case. OAH shall not conduct a hearing of any contested Medicaid case until it has received notice from the mediator assigned that either: (i) the mediation was unsuccessful, or (ii) the petitioner has rejected the offer of mediation, or (iii) the petitioner has failed to appear at a scheduled mediation. Nothing in this subsection shall restrict the right to a contested case hearing.If the recipient accepts an offer of mediation and then fails to attend mediation without good cause, OAH shall dismiss the contested case.

…."

SECTION 12H.27.(b)  G.S. 108D‑15(i) reads as rewritten:

"(i)        Mediation. – Upon receipt of an appeal request form as provided by G.S. 108D‑15(f) or other clear request for a hearing by an enrollee, OAH shall immediately notify the Mediation Network of North Carolina, which shall contact the enrollee within five days to offer mediation in an attempt to resolve the dispute. If mediation is accepted, the mediation must be completed within 25 days of submission of the request for appeal. Upon completion of the mediation, the mediator shall inform OAH and the LME/MCO within 24 hours of the resolution by facsimile or electronic messaging. If the parties have resolved matters in the mediation, OAH shall dismiss the case. OAH shall not conduct a hearing of any contested case involving a dispute of a managed care action until it has received notice from the mediator assigned that either (i) the mediation was unsuccessful, (ii) the petitioner has rejected the offer of mediation, or (iii) the petitioner has failed to appear at a scheduled mediation. Nothing in this subsection shall restrict the right to a contested case hearing.If the enrollee accepts an offer of mediation and then fails to attend mediation without good cause, OAH shall dismiss the contested case."

SECTION 12H.27.(c)  This section is effective October 1, 2014, and applies to appeals of notices of adverse determination mailed on or after that date and appeals of notices of resolution mailed on or after that date.

 

Extend Existing Image Utilization Management Services Contract; Contain Costs of Future Contracts

SECTION 12H.30.(a)  The Department of Health and Human Services, Division of Medical Assistance, shall renegotiate the existing contract for imaging utilization management services in order to achieve five million five hundred thousand dollars ($5,500,000) in annual savings of net General Fund appropriations.

SECTION 12H.30.(b)  The Department of Health and Human Services, Division of Medical Assistance, shall issue a request for proposals (RFP) for a contract for imaging utilization management services to ascertain whether the State can achieve better savings with an alternative vendor and, if so, enter into a contract with the alternative vendor. Such an RFP shall incorporate the same requirements as those specified in Section 10.68B of S.L. 2009‑451, which was enacted by Section 6 of S.L. 2009‑575.

SECTION 12H.30.(c)  No later than March 1, 2015, the Department of Health and Human Services, Division of Medical Assistance, shall report on the results of this section to (i) the House Appropriations Subcommittee on Health and Human Services, (ii) the Senate Appropriations Committee on Health and Human Services, and (iii) the Fiscal Research Division.

 

Nonemergency Medical Transportation Contract

SECTION 12H.31.  The Department of Health and Human Services, Division of Medical Assistance, shall develop and issue a request for proposal for a contract beginning January 1, 2015, for the statewide management of Medicaid nonemergency medical transportation services.

 

Ambulance Transports to Crisis Centers

SECTION 12H.32.  The Department of Health and Human Services, Division of Medical Assistance, shall study the practice of reimbursing for ambulance transports that divert individuals in mental health crisis from hospital emergency departments to alternative appropriate locations for care. The Department shall study existing pilot programs in North Carolina, as well as other states, and shall specifically study expansion of the Wake County Emergency Medical Services (EMS) Advanced Practice Paramedics pilot program. The study shall do the following:

(1)        Propose necessary Medicaid and mental health policy changes.

(2)        Identify funding needs.

(3)        Identify available funding sources.

(4)        Identify any other actions that would be necessary to facilitate implementation.

The Department shall report its findings and recommendations to the House Appropriations Subcommittee on Health and Human Services and the Senate Appropriations Committee on Health and Human Services by March 1, 2015.

 

Paragard Reimbursement

SECTION 12H.33.(a)  Beginning July 1, 2014, the Department of Health and Human Services, Division of Medical Assistance, shall reimburse for Paragard using the same reimbursement methodology as is used for Implanon and Mirena.

SECTION 12H.33.(b)  Any State plan amendment required to implement this section shall not be subject to the 90‑day prior submission requirement of G.S. 108A‑54.1A(e).

 

Study Botox Reimbursement

SECTION 12H.33A.  Prior to the convening of the 2015 General Assembly, the Joint Legislative Oversight Committee on Health and Human Services shall study the issue of implementing uniform Medicaid reimbursement rates for Botox for physicians and pharmacists.

 

Report on PACE Program

SECTION 12H.34.(a)  By September 1, 2014, the Department of Health and Human Services, Division of Medical Assistance, shall report to the Joint Legislative Oversight Committee on Health and Human Services with the following information on the Program of All‑Inclusive Care for the Elderly (PACE):

(1)        The number of individuals being served in each of the PACE service areas.

(2)        A description of the program enrollment criteria and enrollment process.

(3)        Detailed figures showing how funding for the program has been spent during the past two fiscal years.

(4)        The per member per month cost of serving individuals through the PACE program compared to the cost of serving individuals in a nursing home.

(5)        An estimate of how many PACE participants would enter a nursing home if they were not enrolled with the PACE program.

SECTION 12H.34.(b)  By December 1, 2014, the Department of Health and Human Services, Division of Medical Assistance, shall submit an additional report to the Joint Legislative Oversight Committee on Health and Human Services with the following information on the Program of All‑Inclusive Care for the Elderly (PACE):

(1)        An update on all of the information required by subsection (a) of this section.

(2)        A comparison of North Carolina's PACE program to PACE programs in other states.

(3)        Recommendations for how to make the program sustainable.

 

Allow for the Movement of Certain Medicaid Recipients

SECTION 12H.35.  Individuals served pursuant to the State's Section 1915(b)/(c) managed care waiver are exempt from Medicaid home origin requirements for the purposes of services provided under the Section 1915(b)/(c) managed care waiver. Medicaid provided for individuals served pursuant to the State's Section 1915(b)/(c) managed care waiver shall be based on the individual's Medicaid current county of residence. Notwithstanding the forgoing, however, Section 1915(c) innovations waiver slots shall be portable and recognized uniformly throughout all counties of North Carolina; an individual who receives an innovations waiver in one county shall not be required to reapply in another county if that individual moves or seeks services in another county.

 

Appointment and Confirmation of Medicaid Director

SECTION 12H.36.(a)  Effective July 1, 2014, and applying to Directors of the Division of Medical Services appointed on or after that date, G.S. 108A‑54 is amended by adding a new subsection to read:

"§ 108A‑54.  Authorization of Medical Assistance Program; administration.

(e)        The Medicaid Program shall be managed by the Director of the Division of Medical Assistance (Medicaid Director), who shall be recommended by the Secretary of Health and Human Services and appointed by the Governor, subject to confirmation by the General Assembly by joint resolution. The term of office for the Medicaid Director shall be five years beginning upon the date of qualification for office. In case of a vacancy in the office of Medicaid Director for any reason prior to the expiration of his or her term of office, the name of his or her successor for a new five year term shall be submitted by the Governor to the General Assembly not later than 60 days after the vacancy arises. If a vacancy arises in the office when the General Assembly is not in session, the Medicaid Director shall be appointed by the Governor to serve on an interim basis pending confirmation by the General Assembly.

Upon failure of the Governor to submit a name at least 90 days before the expiration of a term or within 60 days of occurrence of a vacancy, the President Pro Tempore of the Senate and the Speaker of the House of Representatives jointly shall submit a name of an appointee to the General Assembly. The appointment shall then be made by enactment of a bill. The bill shall state the name of the person being appointed, the office to which the appointment is being made, the effective date of the appointment, the date of expiration of the term, the city and state of residence of the appointee, and that the appointment is made upon the joint recommendation of the Speaker of the House of Representatives and the President Pro Tempore of the Senate. Nothing precludes any member of the General Assembly from proposing an amendment to any bill making such an appointment.

The Medicaid Director may be removed by either the Secretary of Health and Human Services or the Governor for any of the grounds set forth in G.S. 143B‑13(b), (c), or (d)."

SECTION 12H.36.(b)  The Director of the Division of Medical Assistance (Medicaid Director) serving as of July 1, 2014, shall continue to serve until a successor is appointed under 108A‑54(e).

 

align annual medicaid basic billing unit limits to fiscal year

SECTION 12H.37.(a)  Beginning July 1, 2015, the Department of Health and Human Services, Division of Medical Assistance, shall require that annual Medicaid billing unit limits for services managed by the LME/MCOs be based upon the fiscal year, provided that this standardization can be accomplished with no net fiscal impact on General Fund appropriations.

SECTION 12H.37.(b)  Any State Plan Amendment required to implement this section shall not be subject to the 90-day prior submission requirement of G.S. 108A-54.1A(e).

 

SUBPART XII‑I. MISCELLANEOUS

 

CONTROL OF DATA DISCLOSED TO THE NORTH CAROLINA HEALTH INFORMATION EXCHANGE BY REQUIRED PARTICIPANTS

SECTION 12I.1.(a)  G.S. 90‑413.3A(b) reads as rewritten:

"(b)      Any hospital, as defined in G.S. 131E‑76(c), G.S. 131E‑76(3) that has an electronic health record system shall connect to the NC HIE HIE Network and submit individual patient demographic and clinical data on services paid for with Medicaid funds, based upon the findings set forth in subsection (a) of this section and notwithstanding the voluntary nature of the NC HIE under G.S. 90‑413.2. The NC HIE shall give the Department of Health and Human Services real‑time access to data and information contained in the NC HIE.disclosed through the HIE Network. At the request of the Director of the Fiscal Research, Bill Drafting, Research, or Program Evaluation Divisions of the General Assembly, the NC HIE shall provide the professional staff of these Divisions with data and information responsive to the Director's request. Prior to providing the General Assembly's staff with any data or information disclosed through the HIE Network pursuant to this subsection, the NC HIE shall redact any personal identifying information in a manner consistent with the standards specified for de-identification of health information under the HIPAA Privacy Rule, 45 C.F.R. 164.15, as amended."

SECTION 12I.1.(b)  G.S. 90‑413.3A is amended by adding a new subsection to read:

"(c)       Any data disclosed through the HIE Network pursuant to subsection (b) of this section shall be and will remain the sole property of the State. Any data or product derived from the data disclosed to the HIE Network pursuant to subsection (b) of this section, including a consolidation or analysis of the data, shall be and will remain the sole property of the State. The NC HIE shall not allow proprietary information it receives pursuant to this section to be used by any person or entity for commercial purposes."

SECTION 12I.1.(c)  In order to ensure the successful, uninterrupted operation of the statewide health information exchange network (HIE Network), the Department of Health and Human Services (Department) shall develop a transition plan for transferring the responsibilities imposed on the NC HIE under Article 29A of the General Statutes to another entity in the event the NC HIE is unable or unwilling to continue overseeing and administering the HIE Network. The Department shall develop the plan in consultation with the Office of Information Technology Services and the NC HIE and submit the plan to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division no later than February 1, 2015.

 

Reinstatement of Hospital Setoff Debt Collection

SECTION 12I.4.(a)  G.S. 105A‑2(9) reads as rewritten:

"(9)      State agency. – Any of the following:

a.         A unit of the executive, legislative, or judicial branch of State government, except for the following:

1.         Any school of medicine, clinical program, facility, or practice affiliated with one of the constituent institutions of The University of North Carolina that provides medical care to the general public.

2.         The University of North Carolina Health Care System and other persons or entities affiliated with or under the control of The University of North Carolina Health Care System.government.

b.         A local agency, to the extent it administers a program supervised by the Department of Health and Human Services or it operates a Child Support Enforcement Program, enabled by Chapter 110, Article 9, and Title IV, Part D of the Social Security Act.

c.         A community college."

SECTION 12I.4.(b)  This section is effective when it becomes law and applies to tax refunds determined by the Department of Revenue on or after that date.

 

SUBPART XII‑J. DHHS BLOCK GRANTS

 

REVISE DHHS BLOCK GRANTS

SECTION 12J.1.  Section 12J.1 of S.L. 2013‑360 reads as rewritten:

"DHHS BLOCK GRANTS

"SECTION 12J.1.(a)  Except as otherwise provided, appropriations from federal block grant funds are made for each year of the fiscal biennium ending June 30, 2015, according to the following schedule:

 

TEMPORARY ASSISTANCE TO NEEDY                FY2013‑2014               FY2014‑2015

FAMILIES (TANF) FUNDS

 

Local Program Expenditures

 

Division of Social Services

 

01.       Work First Family Assistance                        $ 60,285,413               $ 60,285,413

 

02.       Work First County Block Grants                      82,485,495                  82,485,495

 

03.       Work First Electing Counties                              2,352,521                    2,352,521

 

04.       Adoption Services – Special Children

Adoption Fund                                                   2,026,877                    2,026,877

 

05.       Child Protective Services – Child Welfare

Workers for Local DSS                                      9,412,391                    9,412,391

 

06.       Child Welfare Collaborative                                   632,416                       632,416

 

06A.    Foster Care Services                                                                              1,385,152

 

Division of Child Development and Early Education

 

07.       Subsidized Child Care Program                        57,172,097 55,409,69554,054,806

 

08.       Swap Child Care Subsidy                                   6,352,644                    6,352,644

 

08A.    Pre‑K Swap Out                                                                                    7,195,807

 

Division of Public Health

 

09.       Teen Pregnancy Initiatives                                   2,500,000                    2,500,000

 

DHHS Administration

 

10.       Division of Social Services                                  2,482,260                    2,482,260

 

11.       Office of the Secretary                                             34,042                         34,042

 

Transfers to Other Block Grants

 

Division of Child Development and Early Education

 

12.       Transfer to the Child Care and

Development Fund                                           71,773,001                  71,773,001

 

13.       Transfer to Social Services Block

Grant for Child Protective Services –

Child Welfare Training in Counties                      1,300,000                    1,300,000

 

14.       Transfer to Social Services Block

Grant for Child Protective Services                     5,040,000                    5,040,000

 

15.       Transfer to Social Services Block

Grant for County Departments of

Social Services for Children's Services                4,148,001                    4,148,001

 

TOTAL TEMPORARY ASSISTANCE TO

NEEDY FAMILIES (TANF) FUNDS                        $307,997,158              $306,234,756$313,460,826

 

TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF)

EMERGENCY CONTINGENCY FUNDS

 

Local Program Expenditures

 

Division of Social Services

 

01.       Work First County Block Grants                     $ 5,580,925                 $ 5,580,925

 

02.       Work First Electing Counties                                   25,692                         25,692

 

Division of Child Development and Early Education

 

03.       Subsidized Child Care                                        6,549,469  6,549,46911,679,394

 

04.       Pre‑K Slots                                                                                            4,000,000

 

05.       Pre‑K Swap Out                                                                                    8,646,527

 

TOTAL TEMPORARY ASSISTANCE TO

NEEDY FAMILIES (TANF) EMERGENCY

CONTINGENCY FUNDS                                            $12,156,086               $ 12,156,086$ 29,932,538

 

SOCIAL SERVICES BLOCK GRANT

 

Local Program Expenditures

 

Divisions of Social Services and Aging and Adult Services

 

01.       County Departments of Social Services

(Transfer from TANF $4,148,001)                $ 29,422,137               $ 29,422,137$ 27,427,015

 

02.       Child Protective Services

(Transfer from TANF)                                        5,040,000                    5,040,000

 

03.       State In‑Home Services Fund                             1,943,950                    1,943,950

 

04.       Adult Protective Services                                    1,245,363                    1,245,363

 

05.       State Adult Day Care Fund                                 1,994,084                    1,994,084

 

06.       Child Protective Services/CPS

Investigative Services – Child Medical

Evaluation Program                                                563,868                       563,868

 

07.       Special Children Adoption Incentive Fund              462,600                       462,600

 

08.       Child Protective Services – Child

Welfare Training for Counties

(Transfer from TANF)                                        1,300,000                    1,300,000

 

09.       Home and Community Care Block

Grant (HCCBG)                                                 1,696,888                    1,696,888

 

10.       Child Advocacy Centers                                        375,000                       375,000

 

11.       Guardianship                                                      3,978,360                    3,978,360

 

12.       UNC Cares Contract                                            229,376            229,37657,344

 

13.       Foster Care Services                                          1,385,152                    1,385,152

 

Division of Central Management and Support

 

14.       DHHS Competitive Block Grants

for Nonprofits                                                     3,852,500                    3,852,500

 

Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

 

15.       Mental Health Services – Adult and

Child/Developmental Disabilities Program/

Substance Abuse Services – Adult                      4,030,730                    4,030,730

 

DHHS Program Expenditures

 

Division of Services for the Blind

 

16.       Independent Living Program                               3,361,323                    3,361,323

 

Division of Health Service Regulation

 

17.       Adult Care Licensure Program                               381,087                       381,087

 

18.       Mental Health Licensure and

Certification Program                                             190,284                       190,284

 

DHHS Administration

 

19.       Division of Aging and Adult Services                      577,745                       577,745

 

20.       Division of Social Services                                     559,109                       559,109

 

21.       Office of the Secretary/Controller's Office              127,731                       127,731

 

22.       Division of Child Development                                 13,878                         13,878

 

23.       Division of Mental Health, Developmental

            Disabilities, and Substance Abuse Services               27,446                         27,446

 

24.       Division of Health Service Regulation                     118,946                       118,946

 

TOTAL SOCIAL SERVICES BLOCK GRANT       $ 62,877,557               $ 62,877,557$ 59,325,251

 

LOW‑INCOME HOME ENERGY ASSISTANCE BLOCK GRANT

 

Local Program Expenditures

 

Division of Social Services

 

01.       Low‑Income Energy Assistance

Program (LIEAP)                                          $ 50,876,440               $ 50,876,440

 

02.       Crisis Intervention Program (CIP)                     33,866,195                  33,866,195

 

Local Administration

 

Division of Social Services

 

03.       County DSS Administration                                6,757,731                    6,757,731

 

DHHS Administration

 

04.       Office of the Secretary/DIRM                                412,488                       412,488

 

05.       Office of the Secretary/Controller's Office                18,378                         18,378

 

Transfers to Other State Agencies

 

Department of Environment and Natural

Resources (DENR)

 

06.       Weatherization Program                                    14,947,789 14,947,78912,473,090

 

07.       Heating Air Repair and Replacement

Program (HARRP)                                             7,193,873    7,193,8736,636,633

 

08.       Local Residential Energy Efficiency Service

Providers – Weatherization                                      37,257            37,257692,950

 

09.       Local Residential Energy Efficiency Service

            Providers – HARRP                                              338,352          338,352312,227

 

10.       DENR Administration – Weatherization                   37,257            37,257692,950

 

11.       DENR Administration – HARRP                           338,352          338,352312,226

 

Department of Administration

 

12.       N.C. Commission on Indian Affairs                          87,736                         87,736

 

TOTAL LOW‑INCOME HOME ENERGY

ASSISTANCE BLOCK GRANT                              $ 114,911,848$114,911,848$113,139,044

 

CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

 

Local Program Expenditures

 

Division of Child Development and Early Education

 

01.       Child Care Services

(Smart Start $7,000,000)   $ 156,566,345$158,328,747$168,536,136

 

02.       Electronic Tracking System                                 3,000,000                    3,000,000

 

03.       Transfer from TANF Block Grant

            for Child Care Subsidies                                   71,773,001                  71,773,001

 

04.       Quality and Availability Initiatives

(TEACH Program $3,800,000)                        24,262,402 22,500,00024,168,551

 

DHHS Administration

 

Division of Child Development and Early Education

 

05.       DCDEE Administrative Expenses                        6,000,000    6,000,0007,677,977

 

Division of Social Services

 

06.       Local Subsidized Child Care

Services Support                                              13,274,413                  13,274,413

 

Division of Central Administration

 

07.       DHHS Central Administration – DIRM

Technical Services                                                 775,000                       775,000

 

08.       Central Regional Maintenance                                                                    202,000

 

TOTAL CHILD CARE AND DEVELOPMENT

FUND BLOCK GRANT                                            $ 275,651,161 $275,651,161$289,407,078

 

MENTAL HEALTH SERVICES BLOCK GRANT

 

Local Program Expenditures

 

01.       Mental Health Services – Adult                      $ 10,717,607               $ 10,717,607

 

02.       Mental Health Services – Child                           5,121,991                    5,121,991

 

03.       Administration                                                       200,000                       200,000

 

04.       Mental Health Services – Adult/Child                                                    12,398,643

 

04A.    Crisis Solutions Initiative – Walk‑In

Crisis Centers                                                                                         2,253,833

 

05.       Crisis Solutions Initiative – Critical Time

Intervention                                                                                               750,000

 

06.       Crisis Solutions Initiative – Peer Support

Respite Centers Pilot                                                                                 700,000

 

07.       Crisis Solutions Initiative – Community

Paramedic Mobile Crisis Management                                                         60,000

 

08.       Crisis Solutions Initiative – Mental Health

First Aid                                                                                                    500,000

 

09.       Crisis Solutions Initiative – Group Homes

Skills Training                                                                                              65,000

 

10.       Crisis Solutions Initiative – Innovative

Technologies                                                                                               41,000

 

TOTAL MENTAL HEALTH SERVICES

BLOCK GRANT                                                          $ 16,039,598               $ 16,039,598$ 16,968,476

 

SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT

 

Local Program Expenditures

 

Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

 

01.       Substance Abuse Services – Adult                 $ 14,960,371               $ 14,960,371

 

02.       Substance Abuse Treatment Alternative

for Women                                                         6,050,300                    6,050,300

 

03.       Substance Abuse – HIV and IV Drug                 3,919,723                    3,919,723

 

04.       Substance Abuse Prevention – Child                   7,186,857                    7,186,857

 

04A.    Substance Abuse Prevention                                                                   8,669,284

 

05.       Substance Abuse Services – Child                      4,190,500                    4,190,500

 

05A.    Substance Abuse Services – Treatment for

Children/Adults                                                                                     29,519,883

 

05B.     Crisis Solutions Initiatives – Walk‑In

Crisis Centers                                                                                            420,000

 

05C.    Crisis Solutions Initiatives – Collegiate

Wellness/Addiction Recovery                                                                 1,085,000

 

05D.    Crisis Solutions Initiatives – Community

Paramedic Mobile Crisis Management                                                         60,000

 

05E.     Crisis Solutions Initiatives – Innovative

Technologies                                                                                               41,000

 

05F.     Crisis Solutions Initiatives – Veterans Crisis                                                250,000

 

06.       Administration                                                       454,000                       454,000

 

Division of Public Health

 

07.       Risk Reduction Projects                                         575,654                       575,654

 

08.       Aid‑to‑Counties                                                    190,295                       190,295

 

08A.    HIV Testing for Individuals in Substance

Abuse Treatment                                                                                       765,949

 

TOTAL SUBSTANCE ABUSE PREVENTION

AND TREATMENT BLOCK GRANT                      $ 37,527,700               $ 37,527,700$ 45,184,839

 

MATERNAL AND CHILD HEALTH BLOCK GRANT

 

Local Program Expenditures

 

Division of Public Health

 

01.       Children's Health Services

(Safe Sleep Campaign $45,000)

$45,000; Prevent Blindness $560,837)         $ 8,042,531  $ 8,042,531$ 7,574,703

 

02.       Women's Health

(March of Dimes $350,000; Teen Pregnancy

Prevention Initiatives $650,000; Perinatal

Quality Collaborative $350,000;

17P Project $52,000; Carolina Pregnancy

Care Fellowship $250,000;$300,000;

Nurse‑Family Partnership $509,018)               8,532,935        8,532,9358,095,148

 

03.       Oral Health                                                           44,901                            44,901

 

DHHS Program Expenditures

 

Division of Public Health

 

04.       Children's Health Services                                   1,301,504    1,301,5041,300,578

 

05.       Women's Health – Maternal Health                        105,419          105,419105,361

 

06.       State Center for Health Statistics                            164,487          164,487156,230

 

07.       Health Promotion – Injury and

Violence Prevention                                                 89,374              89,37484,919

 

DHHS Administration

 

Division of Public Health

 

08.       Division of Public Health Administration                 573,108          573,108552,571

 

TOTAL MATERNAL AND CHILD

HEALTH BLOCK GRANT                                         $ 18,854,259               $ 18,854,259$ 17,914,411

 

PREVENTIVE HEALTH SERVICES BLOCK GRANT

 

Local Program Expenditures

 

01.       Physical Activity and Prevention                       $ 1,186,142                 $ 1,186,142$ 2,079,945

 

02.       Injury and Violence Prevention

(Services to Rape Victims – Set‑Aside)                 169,730          169,730173,476

 

DHHS Program Expenditures

 

Division of Public Health

 

03.       HIV/STD Prevention and

Community Planning                                              145,819                       145,819

 

04.       Oral Health Preventive Services                               46,302                         46,302

 

05.       Laboratory Services – Testing,

Training, and Consultation                                        10,980              10,98021,012

 

06.       Injury and Violence Prevention

(Services to Rape Victims – Set‑Aside)                 199,634                       199,634

 

06A.    State Laboratory Services – Testing,

Training, and Consultation                                                                          199,634

 

07.       Heart Disease and Stroke Prevention                     162,249          162,249187,693

 

08.       Performance Improvement and Accountability        213,971          213,971738,784

 

09.       Physical Activity and Nutrition                                  38,000              38,00068,073

 

10.       State Center for Health Statistics                              61,406                         61,406

 

TOTAL PREVENTIVE HEALTH

SERVICES BLOCK GRANT                                       $ 2,234,233 $ 2,234,233$ 3,921,778

 

COMMUNITY SERVICES BLOCK GRANT

 

Local Program Expenditures

 

Office of Economic Opportunity

 

01.       Community Action Agencies                          $ 22,402,724               $ 22,402,724$ 24,168,417

 

02.       Limited Purpose Agencies                                   1,244,596    1,244,5961,342,690

 

DHHS Administration

 

03.       Office of Economic Opportunity                          1,244,596    1,244,5961,342,690

 

TOTAL COMMUNITY SERVICES

BLOCK GRANT                                                          $ 24,891,916              $ 24,891,916$ 26,853,797

 

"GENERAL PROVISIONS

"SECTION 12J.1.(b)  Information to Be Included in Block Grant Plans. – The Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department, and each plan shall include the following:

(1)        A delineation of the proposed allocations by program or activity, including State and federal match requirements.

(2)        A delineation of the proposed State and local administrative expenditures.

(3)        An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.

(4)        A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.

(5)        A projection of current year expenditures by program or activity.

(6)        A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.

"SECTION 12J.1.(c)  Changes in Federal Fund Availability. – If the Congress of the United States increases the federal fund availability for any of the Block Grants or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall allocate the increase proportionally across the program and activity appropriations identified for that Block Grant in this section. In allocating an increase in federal fund availability, the Office of State Budget and Management shall not approve funding for new programs or activities not appropriated in this section.

If the Congress of the United States decreases the federal fund availability for any of the Block Grants or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall develop a plan to adjust the block grants based on reduced federal funding.

Notwithstanding the provisions of this subsection, for fiscal years 2013‑2014 and 2014‑2015, increases in the federal fund availability for the Temporary Assistance to Needy Families (TANF) Block Grant shall be used only for the North Carolina Child Care Subsidy program to pay for child care in four‑ or five‑star rated facilities for four‑year‑old children.children and shall not be used to supplant State funds.

Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Oversight Committee on Health and Human Services, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division.

"SECTION 12J.1.(d)  Except as otherwise provided, appropriations from federal Block Grant funds are made for each year of the fiscal biennium ending June 30, 2015, according to the schedule enacted for State fiscal years 2013‑2014 and 2014‑2015 or until a new schedule is enacted by the General Assembly.

"SECTION 12J.1.(e)  All changes to the budgeted allocations to the Block Grants or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services that are not specifically addressed in this section shall be approved by the Office of State Budget and Management, and the Office of State Budget and Management shall consult with the Joint Legislative Commission on Governmental Operations for review prior to implementing the changes. The report shall include an itemized listing of affected programs, including associated changes in budgeted allocations. All changes to the budgeted allocations to the Block Grants shall be reported immediately to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division. This subsection does not apply to Block Grant changes caused by legislative salary increases and benefit adjustments.

"SECTION 12J.1.(e1)  Except as otherwise provided, the Department of Health and Human Services shall have flexibility to transfer funding between the Temporary Assistance to Needy Families (TANF) Block Grant and the TANF Emergency Contingency Funds Block Grant so long as the total allocation for the line items within those block grants remains the same.

 

"TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) FUNDS

"SECTION 12J.1.(f)  The sum of eighty‑two million four hundred eighty‑five thousand four hundred ninety‑five dollars ($82,485,495) appropriated in this section in TANF funds to the Department of Health and Human Services, Division of Social Services, for each year of the 2013‑2015 fiscal biennium shall be used for Work First County Block Grants. The Division shall certify these funds in the appropriate State‑level services based on prior year actual expenditures. The Division has the authority to realign the authorized budget for these funds among the State‑level services based on current year actual expenditures.

"SECTION 12J.1.(g)  The sum of two million four hundred eighty‑two thousand two hundred sixty dollars ($2,482,260) appropriated in this section in TANF funds to the Department of Health and Human Services, Division of Social Services, for each year of the 2013‑2015 fiscal biennium shall be used to support administration of TANF‑funded programs.

"SECTION 12J.1.(h)  The sum of nine million four hundred twelve thousand three hundred ninety‑one dollars ($9,412,391) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in TANF funds for each year of the 2013‑2015 fiscal biennium for child welfare improvements shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and post‑adoption services for eligible families.

Counties shall maintain their level of expenditures in local funds for Child Protective Services workers. Of the Block Grant funds appropriated for Child Protective Services workers, the total expenditures from State and local funds for fiscal years 2013‑2014 and 2014‑2015 shall not be less than the total expended from State and local funds for the 2012‑2013 fiscal year.

"SECTION 12J.1.(i)  The sum of two million twenty‑six thousand eight hundred seventy‑seven dollars ($2,026,877) appropriated in this section in TANF funds to the Department of Health and Human Services, Special Children Adoption Fund, for each year of the 2013‑2015 fiscal biennium shall be used in accordance with G.S. 108A‑50.2. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A‑50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.

"SECTION 12J.1.(j)  The sum of six hundred thirty‑two thousand four hundred sixteen dollars ($632,416) appropriated in this section to the Department of Health and Human Services in TANF funds for each year of the 2013‑2015 fiscal biennium shall be used to continue support for the Child Welfare Collaborative.

 

"SOCIAL SERVICES BLOCK GRANT

"SECTION 12J.1.(k)  The sum of twenty‑nine million four hundred twenty‑two thousand one hundred thirty‑seven dollars ($29,422,137) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for each year of the 2013‑2015 fiscal bienniumthe 2013‑2014 fiscal year and the sum of twenty‑seven million four hundred twenty‑seven thousand fifteen dollars ($27,427,015) appropriated in this section in the Social Services Block Grant for the 2014‑2015 fiscal year shall be used for county block grants. The Division shall certify these funds in the appropriate State‑level services based on prior year actual expenditures. The Division has the authority to realign the authorized budget for these funds among the State‑level services based on current year actual expenditures.

"SECTION 12J.1.(l)  The sum of one million three hundred thousand dollars ($1,300,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for each year of the 2013‑2015 fiscal biennium shall be used to support various child welfare training projects as follows:

(1)        Provide a regional training center in southeastern North Carolina.

(2)        Provide training for residential child caring facilities.

(3)        Provide for various other child welfare training initiatives.

"SECTION 12J.1.(m)  The Department of Health and Human Services is authorized, subject to the approval of the Office of State Budget and Management, to transfer Social Services Block Grant funding allocated for departmental administration between divisions that have received administrative allocations from the Social Services Block Grant.

"SECTION 12J.1.(n)  Social Services Block Grant funds appropriated for the Special Childrens Adoption Incentive Fund will require a fifty percent (50%) local match.

"SECTION 12J.1.(o)  The sum of five million forty thousand dollars ($5,040,000) appropriated in this section in the Social Services Block Grant for each year of the 2013‑2015 fiscal biennium shall be allocated to the Department of Health and Human Services, Division of Social Services. The Division shall allocate these funds to local departments of social services to replace the loss of Child Protective Services State funds that are currently used by county government to pay for Child Protective Services staff at the local level. These funds shall be used to maintain the number of Child Protective Services workers throughout the State. These Social Services Block Grant funds shall be used to pay for salaries and related expenses only and are exempt from 10A NCAC 71R .0201(3) requiring a local match of twenty‑five percent (25%).

"SECTION 12J.1.(p)  The sum of three million eight hundred fifty‑two thousand five hundred dollars ($3,852,500) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Central Management and Support, shall be used for DHHS competitive block grants pursuant to Section 12A.2 of this act for each year of the 2013‑2015 fiscal biennium. These funds are exempt from the provisions of 10A NCAC 71R .0201(3).

"SECTION 12J.1.(q)  The sum of three hundred seventy‑five thousand dollars ($375,000) appropriated in this section in the Social Services Block Grant for each year of the 2013‑2015 fiscal biennium to the Department of Health and Human Services, Division of Social Services, shall be used to continue support for the Child Advocacy Centers and are exempt from the provisions of 10A NCAC 71R .0201(3).

"SECTION 12J.1.(r)  The sum of three million nine hundred seventy‑eight thousand three hundred sixty dollars ($3,978,360) appropriated in this section in the Social Services Block Grant for each year of the 2013‑2015 fiscal biennium to the Department of Health and Human Services, Divisions of Social Services and Aging and Adult Services, shall be used for guardianship services pursuant to Chapter 35A of the General Statutes. The Department may expend funds appropriated in this section to support (i) existing corporate guardianship contracts during the 2013‑2014 and 2014‑2015 fiscal years and (ii) guardianship contracts transferred to the State from local management entities or managed care organizations during the 2013‑2014 and 2014‑2015 fiscal years.

 

"LOW‑INCOME HOME ENERGY ASSISTANCE BLOCK GRANT

"SECTION 12J.1.(s)  Additional emergency contingency funds received may be allocated for Energy Assistance Payments or Crisis Intervention Payments without prior consultation with the Joint Legislative Commission on Governmental Operations. Additional funds received shall be reported to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division upon notification of the award. The Department of Health and Human Services shall not allocate funds for any activities, including increasing administration, other than assistance payments, without prior consultation with the Joint Legislative Commission on Governmental Operations.

"SECTION 12J.1.(t)  The sum of fifty million eight hundred seventy‑six thousand four hundred forty dollars ($50,876,440) appropriated in this section in the Low‑Income Home Energy Assistance Block Grant for each year of the 2013‑2015 fiscal biennium to the Department of Health and Human Services, Division of Social Services, shall be used for energy assistance payments for the households of (i) elderly persons age 60 and above with income up to one hundred thirty percent (130%) of the federal poverty level and (ii) disabled persons eligible for services funded through the Division of Aging and Adult Services.

County departments of social services shall submit to the Division of Social Services an outreach plan for targeting households with 60‑year‑old household members no later than August 1 of each year. The outreach plan shall comply with the following:

(1)        Ensure that eligible households are made aware of the available assistance with particular attention paid to the elderly population age 60 and above and disabled persons receiving services through the Division of Aging and Adult Services.

(2)        Include efforts by the county department of social services to contact other State and local governmental entities and community‑based organizations to (i) offer the opportunity to provide outreach and (ii) receive applications for energy assistance.

(3)        Be approved by the local board of social services or human services board prior to submission.

 

"CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

"SECTION 12J.1.(u)  Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.

"SECTION 12J.1.(v)  If funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to child care subsidies, unless otherwise prohibited by federal requirements of the grant, in order to use the federal funds fully.

 

"SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT

"SECTION 12J.1.(v1)  The sum of two hundred fifty thousand dollars ($250,000) appropriated in this section in the Substance Abuse Prevention and Treatment Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2014‑2015 fiscal year shall be allocated to the Department of Administration, Division of Veterans Affairs, to establish a call‑in center to assist veterans in locating service benefits and crisis services. The call‑in center shall be staffed by certified veteran peers within the Division of Veterans Affairs and trained by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.

 

"MATERNAL AND CHILD HEALTH BLOCK GRANT

"SECTION 12J.1.(w)  If federal funds are received under the Maternal and Child Health Block Grant for abstinence education, pursuant to section 912 of Public Law 104‑193 (42 U.S.C. § 710), for the 2013‑2014 fiscal year or the 2014‑2015 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an abstinence until marriage education program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C‑81(e1)(4) and (4a). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.

"SECTION 12J.1.(x)  The Department of Health and Human Services shall ensure that there will be follow‑up testing in the Newborn Screening Program."

 

PART XIII. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

 

PLANT SCIENCES RESEARCH AND INNOVATION INITIATIVE

SECTION 13.1.(a)  The funds appropriated by this act to the Department of Agriculture and Consumer Services for the Plant Sciences Research initiative shall be used by the Commissioner to develop jointly with the College of Agriculture and Life Sciences at North Carolina State University and other stakeholders a formal proposal and economic needs assessment for establishment of a public/private partnership between the University, other academic institutions, private companies in the agribusiness and bioscience sectors, the Department, and other State regulatory agencies for the following amounts and purposes: (i) the sum of three hundred fifty thousand dollars ($350,000) for a partnership to be known as the "Plant Sciences Research and Innovation Initiative" and (ii) the sum of two hundred fifty thousand dollars ($250,000) for a partnership to be known as the "Food Processing Initiative."

SECTION 13.1.(b)  The Department and North Carolina State University shall jointly submit a copy of the proposal and report on the results of the economic needs assessment to the Chairs of the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, the Chairs of the Senate Appropriations Committee on Natural and Economic Resources, the Agriculture and Forestry Awareness Study Commission, and the Fiscal Research Division by January 1, 2015.

 

Bedding Law Account Fund

SECTION 13.1A.  The Department of Agriculture and Consumer Services may use funds from the Bedding Law Account for the information technology needs of the Structural Pest Control & Pesticides Division of the Department.

 

REPEAL COTTON WAREHOUSE FUND

SECTION 13.1B.(a)  Effective June 30, 2014, G.S. 106‑435 is repealed, and the unallotted and unexpended funds in the Cotton Warehouse Fund on that date shall be transferred to the Research Stations Division of the Department of Agriculture and Consumer Services and used to support the operations of the Division.

SECTION 13.1B.(b)  Effective June 30, 2014, G.S. 106‑451.27 is repealed.

 

STATE FAIR ADMISSION

SECTION 13.2.(a)  G.S. 150B‑1(d) is amended by adding a new subdivision to read:

"(d)      Exemptions from Rule Making. – Article 2A of this Chapter does not apply to the following:

(26)      The Board of Agriculture in the Department of Agriculture and Consumer Services with respect to annual admission fees for the State Fair. The Board shall annually post the admission fee schedule on its Web site and provide notice of the fee schedule, along with a citation to this section, to all persons named on the mailing list maintained pursuant to G.S. 150B‑21.2(d)."

SECTION 13.2.(b)  This section is effective when it becomes law.

 

Farmland Preservation Trust Fund

SECTION 13.2A.  Funds appropriated by this act to the North Carolina Agricultural Development and Farmland Preservation Trust Fund for protection of military buffers may only be used to match funding from the federal government for that purpose on at least an equal basis.

 

"GOT TO BE NC" MARKETING CAMPAIGN TO BE THE OFFICIAL AGRICULTURAL MARKETING CAMPAIGN FOR THE STATE

SECTION 13.4.  G.S. 106‑550 reads as rewritten:

"§ 106‑550.  Policy as to promotion of use of, and markets for, farm products.

(a)        It is declared to be in the interest of the public welfare that the North Carolina farmers who are producers of livestock, poultry, seafood, field crops and other agricultural products, including cattle, sheep, broilers, turkeys, commercial eggs, peanuts, cotton, potatoes, sweet potatoes, peaches, apples, berries, vegetables and other fruits of all kinds, as well as bulbs and flowers and other agricultural products having a domestic or foreign market, shall be permitted and encouraged to act jointly and in cooperation with growers, handlers, dealers and processors of such products in promoting and stimulating, by advertising and other methods, the increased production, use and sale, domestic and foreign, of any and all of such agricultural commodities. The provisions of this Article, however, shall not include the agricultural products of tobacco, strawberries, strawberry plants, porcine animals, or equines, with respect to which separate provisions have been made.

(b)        The "Got to be NC" marketing campaign of the Department of Agriculture and Consumer Services shall be the official agricultural marketing campaign for the State."

 

DACS RESEARCH STATIONS

SECTION 13.8.  G.S. 106‑6.3 reads as rewritten:

"§ 106‑6.3.  Create special revenue fund for research stations.

The Research Stations Fund is established as a special revenue fund within the Department of Agriculture and Consumer Services, Division of Research Stations. This Fund shall consist of receipts from the sale of commodities produced on the Department's research stations and any gifts, bequests, or grants for the benefit of this Fund. No General Fund appropriations shall be credited to this Fund. Any balance exceeding one million dollars ($1,000,000) remaining in this Fund at the end of any fiscal year shall not revert.revert to the General Fund. The Department may shall use this Fund only to develop, improve, repair, maintain, operate, or otherwise invest in research stations operated by the Department's Research Station Stations Division."

 

CERTIFICATION OF PRIVATE PESTICIDE APPLICATORS

SECTION 13.10.(a)  G.S. 143‑440(b) reads as rewritten:

"(b)      The Board may include in any such restricted use regulation the time and conditions of sale, distribution, or use of such restricted use pesticides, may prohibit the use of any restricted use pesticide for designated purposes or at designated times; may require the purchaser or user to certify that restricted use pesticides will be used only as labeled or as further restricted by regulation; may require the certification and recertification of private applicators, and charge a fee of up to ten dollars ($10.00), with the fee set at a level to make the certification/recertification program self‑supporting, and, after opportunity for a hearing, may suspend, revoke or modify the certification for violation of any provision of this Article, or any rule or regulation adopted thereunder; may adopt rules to classify private applicators; and may, if it deems it necessary to carry out the provisions of this Part, require that any or all restricted use pesticides shall be purchased, possessed, or used only under permit of the Board and under its direct supervision in certain areas and/or under certain conditions or in certain quantities or concentrations except that any person licensed to sell such pesticides may purchase and possess such pesticides without a permit. The Board may require all persons issued such permits to maintain records as to the use of the restricted use pesticides. The Board may authorize the use of restricted use pesticides by persons licensed under the North Carolina Structural Pest Control Act without a permit. A nonrefundable fee of ten dollars ($10.00) shall be charged for each examination required by this section. This examination fee is in addition to the certification or recertification fee, and any other fee authorized pursuant to any other provision of Article 4C of Chapter 106 of the General Statutes."

SECTION 13.10.(b)  G.S. 106‑65.24 reads as rewritten:

"§ 106‑65.24.  Definitions.

As used in this Article:

(23)      "Structural pest control" means the control of wood‑destroying organisms or household pests (including, but not limited to, animals such as moths, cockroaches, ants, beetles, flies, mosquitoes, ticks, wasps, bees, fleas, mites, silverfish, millipedes, centipedes, sowbugs, crickets, termites, wood borers, etc.), including the identification of infestations or infections, the making of inspections, the use of pesticides, including insecticides, repellents, attractants, rodenticides, fungicides, and fumigants, as well as all other substances, mechanical devices or structural modifications under whatever name known, for the purpose of preventing, controlling and eradicating insects, vermin, rodents and other pests in household structures, commercial buildings, and other structures (including household structures, commercial buildings and other structures in all stages of construction), and outside areas, as well as all phases of fumigation, including treatment of products by vacuum fumigation, and the fumigation of railroad cars, trucks, ships, and airplanes, or any one or any combination thereof. Structural pest control shall not include ancillary activities such as furniture moving, cleaning, maintenance, or repair of property that may be performed in association with the control of wood‑destroying organisms or household pests as described in this subdivision.

…."

SECTION 13.10.(c)  G.S. 106‑65.25 reads as rewritten:

"§ 106‑65.25.  Phases of structural pest control; prohibited acts; license required; exceptions.

(i)         Nothing in this Article shall limit or restrict the ability of a person engaged in activities ancillary to structural pest control as set forth in G.S. 106‑65.24(23) to be engaged in such activities, whether as an employee, independent contractor, or otherwise, for one or more structural pest control licensees."

 

INCREASE FEES ASSOCIATED WITH NATIONAL POULTRY IMPROVEMENT PLAN

SECTION 13.11.  G.S. 106‑543 reads as rewritten:

"§ 106‑543.  Requirements of national poultry improvement plan must be met.

(a)        All baby chicks, turkey poults and hatching eggs produced, sold or offered for sale shall originate in flocks that meet the requirements of the national poultry improvement planNational Poultry Improvement Plan as administered by the North Carolina Department of Agriculture and Consumer Services and the regulations issued by authority of this Article for the control of pullorum disease and other infectious diseases provided that nothing in this Article shall require any hatchery to adopt the national poultry improvement plan.National Poultry Improvement Plan.

(b)        The Department of Agriculture and Consumer Services shall charge the following fees for certification in the National Poultry Improvement Plan to cover the costs of pullorum testing:

(1)        An initial certification fee of fifty dollars ($50.00), plus ten cents (10¢) per bird.

(2)        An annual recertification fee of ten dollars ($10.00), plus ten cents (10¢) per bird."

 

FEES FOR FOREST MANAGEMENT PLANS

SECTION 13.13.(a)  Article 83 of Chapter 106 of the General Statutes is amended by adding a new section to read:

"§ 106-1013.1.  Forest management plans.

The Commissioner shall charge landowners the following fee for preparation of forest management plans:

(1)        Two hundred fifty dollars ($250.00) for plans for tracts of land of less than 20 acres.

(2)        Five hundred dollars ($500.00) for plans for tracts of land of 20 acres or more and less than 50 acres.

(3)        Seven hundred fifty dollars ($750.00) for plans for tracts of land of 50 acres of more."

SECTION 13.13.(b)  This section becomes effective July 1, 2014, and applies to forest management plans applied for on or after that date.

 

TRANSFER THE ANIMAL WELFARE SECTION AND THE SPAY/NEUTER PROGRAM FROM THE DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES TO THE DEPARTMENT OF PUBLIC SAFETY; AND AMEND DEFINITION OF ANIMAL DEALER

SECTION 13.14.(a)  The Animal Welfare Section and the Spay/Neuter Program, as established by Articles 3 and 5 of Chapter 19A of the General Statutes and other applicable laws of this State, are transferred to the Department of Public Safety. This transfer shall have all of the elements of a Type I transfer, as defined in G.S. 143A‑6.

SECTION 13.14.(b)  The Animal Welfare Act, Article 3 of Chapter 19A of the General Statutes, reads as rewritten:

"Article 3.

"Animal Welfare Act.

"§ 19A‑20.  Title of Article.

This Article may be cited as the Animal Welfare Act.

"§ 19A‑21.  Purposes.

The purposes of this Article are (i) to protect the owners of dogs and cats from the theft of such pets; (ii) to prevent the sale or use of stolen pets; (iii) to insure that animals, as items of commerce, are provided humane care and treatment by regulating the transportation, sale, purchase, housing, care, handling and treatment of such animals by persons or organizations engaged in transporting, buying, or selling them for such use; (iv) to insure that animals confined in pet shops, kennels, animal shelters and auction markets are provided humane care and treatment; (v) to prohibit the sale, trade or adoption of those animals which show physical signs of infection, communicable disease, or congenital abnormalities, unless veterinary care is assured subsequent to sale, trade or adoption.

"§ 19A‑22.  Animal Welfare Section in Animal Health Division of Department of Agriculture and Consumer ServicesLaw Enforcement Division of the Department of Public Safety created; Director.

There is hereby created within the Animal Health Division of the North Carolina Department of Agriculture and Consumer Services,Law Enforcement Division of the Department of Public Safety, a new section thereof, to be known as the Animal Welfare Section of said division.

The Commissioner of AgricultureSecretary of the Department of Public Safety is hereby authorized to appoint a Director of said section whose duties and authority shall be determined by the Commissioner subject to the approval of the Department of Public Safety and subject to the provisions of this Article.Secretary.

"§ 19A‑23.  Definitions.

For the purposes of this Article, the following terms, when used in the Article or the rules or orders made pursuant thereto, shall be construed respectively to mean:

(1)        "Adequate feed" means the provision at suitable intervals, not to exceed 24 hours, of a quantity of wholesome foodstuff suitable for the species and age, sufficient to maintain a reasonable level of nutrition in each animal. Such foodstuff shall be served in a sanitized receptacle, dish, or container.

(2)        "Adequate water" means a constant access to a supply of clean, fresh, potable water provided in a sanitary manner or provided at suitable intervals for the species and not to exceed 24 hours at any interval.

(3)        "Ambient temperature" means the temperature surrounding the animal.

(4)        "Animal" means any domestic dog (Canis familiaris), or domestic cat (Felis domestica).

(5)        "Animal shelter" means a facility which is used to house or contain seized, stray, homeless, quarantined, abandoned or unwanted animals and which is under contract with, owned, operated, or maintained by a county, city, town, or other municipality, or by a duly incorporated humane society, animal welfare society, society for the prevention of cruelty to animals, or other nonprofit organization devoted to the welfare, protection, rehabilitation, or humane treatment of animals.

(5a)      "Approved foster care provider" means an individual, nonprofit corporation, or association that cares for stray animals that has been favorably assessed by the operator of the animal shelter through the application of written standards.

(5b)      "Approved rescue organization" means a nonprofit corporation or association that cares for stray animals that has been favorably assessed by the operator of the animal shelter through the application of written standards.

(5c)      "Boarding kennel" means a facility or establishment which regularly offers to the public the service of boarding dogs or cats or both for a fee. Such a facility or establishment may, in addition to providing shelter, food and water, offer grooming or other services for dogs and/or cats.

(6)        "Commissioner""Secretary" means the Commissioner of Agriculture of the State of North Carolina Secretary of the Department of Public Safety.

(7)        "Dealer" means any person who sells, exchanges, or donates, or offers to sell, exchange, or donate animals to another dealer, pet shop, or research facility; provided, however, that an individual who breeds and raises on his own premises no more than the offspring of five canine or feline females per year, unless bred and raised specifically for research purposes shall not be considered to be a dealer for the purposes of this Article.

(7a)      "Department" means the Department of Public Safety.

(8)        "Director" means the Director of the Animal Welfare Section of the Animal Health Division of the Department of Agriculture and Consumer Services Law Enforcement Division of the Department of Public Safety.

"§ 19A‑24.  Powers of Board of Agriculture.Department of Public Safety.

(a)        The Board of AgricultureDepartment of Public Safety shall:

(1)        Establish standards for the care of animals at animal shelters, boarding kennels, pet shops, and public auctions. auctions, and animals sold by dealers to the public. A boarding kennel that offers dog day care services and has a ratio of dogs to employees or supervisors, or both employees and supervisors, of not more than 10 to one, shall not as to such services be subject to any regulations that restrict the number of dogs that are permitted within any primary enclosure.

(b)        In addition to rules on the euthanasia of animals adopted pursuant to subdivision (5) of subsection (a) of this section, the Board of AgricultureDepartment of Public Safety shall adopt rules for the certification of euthanasia technicians. The rules may provide for:

(c)        Regardless of the extent to which the Board exercises its authority under subsection (b) of this section, the Department may deny, revoke, or suspend the certification of a euthanasia technician who has been convicted of or entered a plea of guilty or nolo contendere to a felony involving the illegal use, possession, sale, manufacture, distribution, or transportation of a controlled substance, drug, or narcotic.

(d)        Persons seeking certification as euthanasia technicians, or a renewal of such certification, shall provide the Department a fingerprint card in a format acceptable to the Department, a form signed by the person consenting to a criminal record check and the use of the person's fingerprints, and such other identifying information as may be required by the State or national data banks. The Department may deny certification to persons who refuse to provide the fingerprint card or consent to the criminal background check. Fees required by the Department of Justice for conducting the criminal background check shall be collected by the Department and remitted to the Department of Justice along with the fingerprint card and consent form."

"§ 19A‑25.  Employees; investigations; right of entry.

For the enforcement of the provisions of this Article, the Director is authorized, subject to the approval of the CommissionerSecretary to appoint employees as are necessary in order to carry out and enforce the provisions of this Article, and to assign them interchangeably with other employees of the Animal Health Division.Article. The Director shall cause the investigation of all reports of violations of the provisions of this Article, and the rules adopted pursuant to the provisions hereof; provided further, that if any person shall deny the Director or his representative admittance to his property, either person shall be entitled to secure from any superior court judge a court order granting such admittance.

"§ 19A‑26.  Certificate of registration required for animal shelter.

No person shall operate an animal shelter unless a certificate of registration for such animal shelter shall have been granted by the Director. Application for such certificate shall be made in the manner provided by the Director. No fee shall be required for such application or certificate. Certificates of registration shall be valid for a period of one year or until suspended or revoked and may be renewed for like periods upon application in the manner provided.

"§ 19A‑32.1.  Minimum holding period for animals in animal shelters; public viewing of animals in animal shelters; disposition of animals.

(f)         An animal that is surrendered to an animal shelter by the animal's owner and not reclaimed by that owner during the minimum holding period may be disposed of in one of the following manners:

(1)        Returned to the owner.

(2)        Adopted as a pet by a new owner.

(3)        Euthanized by a procedure approved by rules adopted by the Department of Agriculture and Consumer ServicesDepartment of Public Safety or, in the absence of such rules, by a procedure approved by the American Veterinary Medical Association, the Humane Society of the United States, or the American Humane Association.

(j)         Animal shelters shall maintain a record of all animals impounded at the shelter, shall retain those records for a period of at least three years from the date of impoundment, and shall make those records available for inspection during regular inspections pursuant to this Article or upon the request of a representative of the Animal Welfare Section. These records shall contain, at a minimum:

(1)        The date of impoundment.

(2)        The length of impoundment.

(3)        The disposition of each animal, including the name and address of any person to whom the animal is released, any institution that person represents, and the identifying information required under subsection (i) of this section.

(4)        Other information required by rules adopted by the Board of Agriculture. Department of Public Safety.

"§ 19A‑36.  Penalty for violation of Article by dog warden.city/county employee responsible for animal control.

Violation of any provision of this Article which relates to the seizing, impoundment, and custody of an animal by a dog warden city or county employee responsible for animal control shall constitute a Class 3 misdemeanor and the person convicted thereof shall be subject to a fine of not less than fifty dollars ($50.00) and not more than one hundred dollars ($100.00), and each animal handled in violation shall constitute a separate offense.

"§ 19A‑41.  Legal representation by the Attorney General.

It shall be the duty of the Attorney General to represent the Commissioner of Agriculture and the Department of Agriculture and Consumer Services,Secretary of the Department of Public Safety, or to designate some member of his staff to represent the CommissionerSecretary and the Department, in all actions or proceedings in connection with this Article."

SECTION 13.14.(b1)  G.S. 19A‑23, as amended by subsection (b) of this section, reads as rewritten:

"§ 19A‑23.  Definitions.

For the purposes of this Article, the following terms, when used in the Article or the rules or orders made pursuant thereto, shall be construed respectively to mean:

(7)        "Dealer" means any person who sells, exchanges, or donates, or offers to sell, exchange, or donate animals to another dealer, pet shop, or research facility; provided, however, that an individual who breeds and raises on his own premises no more than the offspring of five canine or feline females per year, unless bred and raised specifically for research purposes shall not be considered to be a dealer for the purposes of this Article.facility or any person who owns, has custody of, or maintains 10 or more female dogs over the age of six months that are capable of reproduction and that are kept primarily for the purposes of breeding and selling the offspring as pets. A kennel or boarding facility in which the majority of dogs are being trained primarily for hunting, sporting, field trials, or show shall not be considered a dealer.

…."

SECTION 13.14.(c)  Article 5 of Chapter 19A of the General Statutes reads as rewritten:

"Article 5.

"Spay/Neuter Program.

"§ 19A‑60.  Legislative findings.

The General Assembly finds that the uncontrolled breeding of cats and dogs in the State has led to unacceptable numbers of unwanted dogs, puppies and cats and kittens. These unwanted animals become strays and constitute a public nuisance and a public health hazard. The animals themselves suffer privation and death, are impounded, and most are destroyed at great expense to local governments. It is the intention of the General Assembly to provide a voluntary means of funding a spay/neuter program to provide financial assistance to local governments offering low‑income persons reduced‑cost spay/neuter services for their dogs and cats and to provide a statewide education program on the benefits of spaying and neutering pets.

"§ 19A‑61.  Spay/Neuter Program established.

There is established in the Department of Agriculture and Consumer ServicesDepartment of Public Safety a voluntary statewide program to foster the spaying and neutering of dogs and cats for the purpose of reducing the population of unwanted animals in the State. The program shall consist of the following components:

(1)        Education Program. – The Department shall establish a statewide program to educate the public about the benefits of having cats and dogs spayed and neutered. The Department may work cooperatively on the program with the North Carolina School of Veterinary Medicine, other State agencies and departments, county and city health departments and animal control agencies, and statewide and local humane organizations. The Department may employ outside consultants to assist with the education program.

(2)        Local Spay/Neuter Assistance Program. – The Department shall administer the Spay/Neuter Account established in G.S. 19A‑62. Monies deposited in the account shall be available to reimburse eligible counties and cities for the direct costs of spay/neuter surgeries for cats and dogs made available to low‑income persons.

"§ 19A‑62.  Spay/Neuter Account established.

(a)        Creation. – The Spay/Neuter Account is established as a nonreverting special revenue account in the Department of Agriculture and Consumer Services.Department of Public Safety. The Account consists of the following:

(1)        Repealed by Session Laws 2010‑31, s. 11.4(c), effective October 1, 2010.

(2)        Twenty dollars ($20.00) of the additional fee imposed by G.S. 20‑79.7 for an Animal Lovers special license plate.

(3)        Any other funds available from appropriations by the General Assembly or from contributions and grants from public or private sources.

(4)        An annual transfer of two hundred fifty thousand dollars ($250,000) in receipts of the Animal Feed and Pet Food Branch within the Food and Drug Protection Division of the Department of Agriculture and Consumer Services, of which $10,000 may be used to establish and publicize a fund to accept additional private contributions for the operation of the Dealer inspection program under Article 3 of this Chapter or the Spay/Neuter program under this Article.

(5)        An annual transfer of sixty‑one thousand five hundred twenty‑five dollars ($61,525) in receipts collected by the Department from the inspection fee authorized by G.S. 106‑284.40(a).

(b)        Use. – The revenue in the Account shall be used by the Department of Agriculture and Consumer ServicesDepartment of Public Safety as follows:

(c)        Report. – In February of each year, the Department must report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division. The report must contain information regarding all revenues and expenditures of the Spay/Neuter Account.

"§ 19A‑64.  Distributions to counties and cities from Spay/Neuter Account.

(b)        Application. – A county or city eligible for reimbursement of spaying and neutering costs from the Spay/Neuter Account shall apply to the Department of Agriculture and Consumer ServicesDepartment of Public Safety by the last day of January, April, July, and October of each year to receive a distribution from the Account for that quarter. The application shall be submitted in the form required by the Department and shall include an itemized listing of the costs for which reimbursement is sought.

"§ 19A‑65.  Annual Report Required From Every Animal Shelter in Receipt of State or Local Funding.

Every county or city animal shelter, or animal shelter operated under contract with a county or city or otherwise in receipt of State or local funding shall prepare an annual report in the form required by the Department of Agriculture and Consumer ServicesDepartment of Public Safety setting forth the numbers, by species, of animals received into the shelter, the number adopted out, the number returned to owner, and the number destroyed. The report shall also contain the total operating expenses of the shelter and the cost per animal handled. The report shall be filed with the Department of Agriculture and Consumer ServicesDepartment of Public Safety by March 1 of each year. A city or county that does not timely file the report required by this section is not eligible to receive reimbursement payments under G.S. 19A‑64 during the calendar year in which the report was to be filed.

"§ 19A‑66.  Notification of available funding.

Prior to January 1 of each year, the Department of Agriculture and Consumer ServicesDepartment of Public Safety shall notify counties and cities that have, prior to that notification deadline, established eligibility for distribution of funds from the Spay/Neuter Account pursuant to G.S. 19A‑63, of the following:

…."

SECTION 13.14.(d)  G.S. 90‑101(a2) reads as rewritten:

"(a2)     An animal shelter may register under this section for the limited purpose of obtaining, possessing, and using sodium pentobarbital and other drugs approved by the Department in consultation with the North Carolina Veterinary Medical Association for the euthanasia of animals lawfully held by the animal shelter. An animal shelter registered under this section shall also register with the federal Drug Enforcement Agency under the federal Controlled Substances Act. An animal shelter's acquisition of sodium pentobarbital and other approved drugs for use in the euthanizing of animals shall be made only by the shelter's manager or chief operating officer or by a licensed veterinarian.

A person certified by the Department of Agriculture and Consumer ServicesPublic Safety to administer euthanasia by injection is authorized to possess and administer sodium pentobarbital and other approved euthanasia drugs for the purposes of euthanizing domestic dogs (Canis familiaris) and cats (Felis domestica) lawfully held by an animal shelter. Possession and administration of sodium pentobarbital and other approved drugs for use in the euthanizing of dogs and cats by a certified euthanasia technician shall be limited to the premises of the animal shelter.

For purposes of this section, "animal shelter" means an animal shelter registered under Article 3 of Chapter 19A of the General Statutes and owned, operated, or maintained by a unit of local government or under contract with a unit of local government for the purpose of housing or containing seized, stray, homeless, quarantined, abandoned, or unwanted animals."

SECTION 13.14.(e)  G.S. 153A‑442 reads as rewritten:

"§ 153A‑442.  Animal shelters.

A county may establish, equip, operate, and maintain an animal shelter or may contribute to the support of an animal shelter, and for these purposes may appropriate funds not otherwise limited as to use by law. The animal shelters shall meet the same standards as animal shelters regulated by the Department of Agriculture Public Safety pursuant to its authority under Chapter 19A of the General Statutes."

SECTION 13.14.(f)  G.S. 160A‑493 reads as rewritten:

"§ 160A‑493.  Animal shelters.

A city may establish, equip, operate, and maintain an animal shelter or may contribute to the support of an animal shelter, and for these purposes may appropriate funds not otherwise limited as to use by law. The animal shelters shall meet the same standards as animal shelters regulated by the Department of Agriculture Public Safety pursuant to its authority under Chapter 19A of the General Statutes."

SECTION 13.14.(g)  Subsection 13.14(b1) of this section becomes effective July 1, 2015.

 

TVA Settlement Funds

SECTION 13.15.  Section 13.3 of S.L. 2013‑360 reads as rewritten:

"SECTION 13.3.(a)  In each fiscal year of the 2013‑2015 biennium, the Department of Agriculture and Consumer Services shall apply for two million two hundred forty thousand dollars ($2,240,000) from the Tennessee Valley Authority Settlement Agreement in compliance with the requirements of paragraphs 122 through 128 of the Consent Decree entered into by the State in State of Alabama et al. v. Tennessee Valley Authority, Civil Action 3:11‑cv‑00170 in the United States District Court for the Eastern District of Tennessee, and Appendix C to the Compliance Agreement. The funds received by the State under this section shall be allocated as follows:

(1)        Five hundred thousand dollars ($500,000) for each fiscal year of the 2013‑2015 biennium to award grants for "Environmental Mitigation Projects" of the types specified in paragraph 128 of the Consent Decree in the following counties: Avery, Buncombe, Burke, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Swain, Transylvania, Watauga, Yancey.

(2)        Five hundred thousand dollars ($500,000) for each fiscal year of the 2013‑2015 biennium the 2013‑2014 fiscal year to the North Carolina Agricultural Water Resources Assistance Program to fund projects in the following counties: Avery, Buncombe, Burke, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Swain, Transylvania, Watauga, Yancey.

(2a)      Five hundred thousand dollars ($500,000) for the 2014‑2015 fiscal year to WNC Communities to fund lighting efficiency projects for public schools in areas served by the organization. Of the funds allocated in this subdivision, WNC Communities may use up to fifty thousand dollars ($50,000) for administrative expenses.

(3)        One million dollars ($1,000,000) for each fiscal year of the 2013‑2015 biennium to North Carolina Agricultural Development and Farmland Preservation Trust Fund to be used, notwithstanding G.S. 106‑744, to award funds in the following counties: Avery, Buncombe, Burke, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Swain, Transylvania, Watauga, Yancey.

(4)        Two hundred forty thousand dollars ($240,000) for each fiscal year of the 2013‑2015 biennium to the Appalachian Energy Center at Appalachian State University.

"SECTION 13.3.(b)  Funds allocated under subdivision (1) of subsection (a) of this section shall not be used to acquire land.land or purchase conservation easements."

 

PART XIV. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

 

AGENCIES REPORT ON FEDERAL GRANTS

SECTION 14.1.  The Department of Environment and Natural Resources, the Wildlife Resources Commission, the Department of Labor, the Department of Commerce, and the Department of Agriculture shall review every federal grant received by the respective departments and report no later than February 1, 2015, to the Chairs of the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, the Chairs of the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division regarding the source and amount of the grant, the match required for the grant from State funds, and any conditions, limitations, restrictions, or additional actions or programs the department is required to fulfill or undertake as a result of accepting the grant.

 

NER FACILITIES AND ADMINISTRATIVE FEES

SECTION 14.2.  The Department of Agriculture, the Department of Commerce, the North Carolina Biotechnology Center, and the Department of Environment and Natural Resources shall negotiate indirect cost waivers with every constituent institution of The University of North Carolina performing State‑funded research for the Center or the respective Departments. The waivers shall provide that the Center or the Departments pay facilities and administrative costs at a rate no greater than the lowest rate paid by any other State agency, department, or commission for research at that constituent institution.

 

Efficiencies Reporting By NER Agencies

SECTION 14.2A.(a)  The Wildlife Resources Commission and the Departments of Environment and Natural Resources, Labor, Commerce, and Agriculture that have, within the current biennium, as defined in G.S. 143C‑1‑1, undergone reorganizations, modifications to assignments or duties, or transfers of departmental functions or positions between Fund Codes shall submit a report as provided in this section. The report shall address the rationale for the reorganization or other administrative modifications, the efficiencies achieved, and the cost‑savings resulting from the reorganization or other administrative modifications, including, at a minimum, the following:

(1)        Positions eliminated.

(2)        Positions transferred among divisions, sections, or programs.

(3)        New divisions, sections, and programs established.

(4)        A comparison of the organizational charts before and after the reorganizations or other administrative modifications with each structural change clearly identified.

(5)        A list of divisions, sections, and programs that were unaffected by the reorganizations or other administrative modifications.

(6)        Resulting cost‑savings, itemized by funding source.

(7)        An explanation of improvements in the administrative capability of the department to manage its programs and carry out its mission.

(8)        An identification of any obsolete or overlapping activities.

SECTION 14.2A.(b)  Each department shall submit its report to the Chairs of the House Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division of the General Assembly no later than December 1, 2014.

 

Aquarium Fund Fee Transfers

SECTION 14.2C.  G.S. 143B‑289.44 reads as rewritten:

"§ 143B‑289.44.  North Carolina Aquariums; fees; fund.

(a)        Fees. – The Secretary of Environment and Natural Resources may adopt a schedule of fees for the aquariums and piers operated by the North Carolina Aquariums, including:

(1)        Gate admission fees.

(2)        Facility rental fees.

(3)        Educational programs.

(b)        Fund. – The North Carolina Aquariums Fund is hereby created as a special and nonreverting fund. The North Carolina Aquariums Fund shall be used for repair, renovation, expansion, maintenance, educational exhibit construction, and operational expenses at existing aquariums, to pay the debt service and lease payments related to the financing of expansions of aquariums, and to match private funds that are raised for these purposes.

(c)        Disposition of Fees. – All entrance fee receipts shall be credited to the North Carolina Aquariums Fund. Receipts so credited that are necessary to support the personnel and operational expenses of the aquariums shall be transferred to the aquariums' General Fund operating budget on a monthly basis.

…."

 

JENNETTE'S PIER

SECTION 14.2D.(a)  The Department of Administration shall dispose by sale of the Jennette's Pier facility as set forth in this section. Notwithstanding any provision of law to the contrary, the Department shall not sell the facility for less than either the fair market value or the total amount invested in the facility from all sources as determined by the Department, whichever is higher. Notwithstanding G.S. 146‑30, the Department shall deposit the net proceeds from the disposition of the property to reimburse the Town of Nags Head and Dare County for their financial contributions to the land acquisition and construction of the facility, with all remaining proceeds to the Clean Water Management Trust Fund.

SECTION 14.2D.(b)  The Department shall report no later than April 1, 2015, to the Chairs of the Senate Appropriations Committee on Natural and Economic Resources, the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, and the Fiscal Research Division regarding the status of the facility sale required by this section.

 

COASTAL AND ESTUARINE WATER BEACH ACCESS PROGRAM

SECTION 14.4.(a)  Funds transferred from the Parks and Recreation Trust Fund to the Division of Coastal Management pursuant to G.S. 113‑44.15(b)(3) for the Coastal and Estuarine Water Beach Access Program shall be deposited in a noninterest-bearing special fund to be titled Coastal and Estuarine Water Beach Access Fund. The Fund shall be a special revenue fund consisting of gifts and grants to the Fund and other monies appropriated to the Fund by the General Assembly.

SECTION 14.4.(b)  Funds previously transferred from the Parks and Recreation Trust Fund to the Division of Coastal Management for the Coastal and Estuarine Water Beach Access Program that were deposited in capital funds shall be transferred to the Coastal and Estuarine Water Beach Access Fund established by subsection (a) of this section no later than September 30, 2014.

 

TECHNICAL CORRECTIONS: CWMTF

SECTION 14.8.(a)  G.S. 113A‑251 reads as rewritten:

"§ 113A‑251.  Purpose.

The General Assembly recognizes that a critical need exists in this State to clean up pollution in the State's surface waters and to protect, preserve, and conserve those waters that are not yet polluted. The task of cleaning up polluted waters and protecting and enhancing the State's water resources is multifaceted and requires different approaches, including innovative pilot projects, that take into account the problems, the type of pollution, the geographical area, and the recognition that the hydrological and ecological values of each resource sought to be upgraded, conserved, and protected are unique.

It is the intent of the General Assembly that moneys from the Fund created under this Article shall be used to help finance projects that enhance or restore degraded surface waters; protect and conserve surface waters, including drinking supplies, and contribute toward a network of riparian buffers and greenways for environmental, educational, and recreational benefits; provide buffers around military bases to protect the military mission; acquire land that represents the ecological diversity of North Carolina; and acquire land that contributes to the development of a balanced State program of historic properties.specifically address water pollution problems and focus on upgrading surface waters, eliminating pollution, and protecting, preserving, and conserving unpolluted surface waters, including enhancement or development of drinking water supplies. It is the further intent of the General Assembly that moneys from the Fund also be used to build a network of riparian buffers and greenways for environmental, educational, and recreational benefits. It is lastly the intent of the General Assembly that moneys from the Fund also be used to preserve lands that could be used for water supply reservoirs. While the purpose of this Article is to focus on the cleanup and prevention of pollution of the State's surface waters, the establishment of a network of riparian buffers and greenways, and the preservation of property for establishing clean water supplies, the General Assembly believes that the results of these efforts will also be beneficial to wildlife and marine fisheries habitats."

SECTION 14.8.(b)  G.S. 113A‑252 reads as rewritten:

"§ 113A‑252.  Definitions.

The following definitions apply in this Article:

(1)        Council. – The advisory council for the Clean Water Management Trust Fund.

(2)        Economically distressed local government unit. – An economically distressed county, as defined in G.S. 143B‑437.01, or a local government unit located in that county.

(3)        Fund. – The Clean Water Management Trust Fund created pursuant to this Article.

(4)        Land. – Real property and any interest in, easement in, or restriction on real property.

(4a)      Local government unit. – Defined in G.S. 159G‑20.

(4b)      Stormwater quality project. – Defined in G.S. 159G‑20.

(5)        Trustees. – The trustees of the Clean Water Management Trust Fund.

(6)        Wastewater collection system. – Defined in G.S. 159G‑20.

(7)        Wastewater treatment works. – Defined in G.S. 159G‑20."

SECTION 14.8.(c)  G.S. 113A‑254 reads as rewritten:

"§ 113A‑254.  Grant requirements.

(a)        Eligible Applicants. – Any of the following are eligible to apply for a grant from the Fund for the purpose of protecting and enhancing water quality:

(1)        A State agency.

(2)        A local government unit.

(3)        A nonprofit corporation whose primary purpose is the conservation, preservation, and or restoration of our State's environmental and natural cultural, environmental, or natural resources.

(a1)      Criteria. – The criteria developed by the Trustees under G.S. 113A‑256 apply to grants made under this Article. The common criteria for water projects set in G.S. 159G‑23 and the criteria set out in this section also apply to wastewater collection system projects, wastewater treatment works projects, and stormwater quality projects. An application for a wastewater collection system project or a wastewater treatment works project that serves an economically distressed local government unit has priority.

(d)        Wastewater Limits. – A wastewater collection system project or a wastewater treatment works project is eligible for a grant under this Article only if it is a high‑unit‑cost project, as defined in G.S. 159G‑20. A planning grant or a technical assistance grant for a regional wastewater collection system or a regional wastewater treatment works is not subject to the high‑unit‑cost threshold. A grant made under this Article for a wastewater collection system project or a wastewater treatment works project is subject to the cost limits and recipient limits set in G.S. 159G‑36 for a grant awarded from the Wastewater Reserve.

(e)        Stormwater Limits. – The amount of a grant awarded under this Article for a stormwater quality project may not exceed the construction costs of the project. The total amount of grants awarded under this Article to the same recipient for stormwater quality projects for a fiscal year may not exceed the limit set in G.S. 159G‑36(c)(1) for grants to the same recipient from the Wastewater Reserve.

…."

SECTION 14.8.(d)  G.S. 113A‑255(b1) is amended by adding a new subdivision to read:

"(b1)    Qualifications. – The office of Trustee is declared to be an office that may be held concurrently with any other executive or appointive office, under the authority of Article VI, Section 9, of the North Carolina Constitution. When appointing members of the Authority, the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives shall give consideration to adequate representation from the various regions of the State and shall give consideration to the appointment of members who are knowledgeable in any of the following areas:

(5)        Historic preservation."

SECTION 14.8.(e)  G.S. 113A‑256(b) reads as rewritten:

"(b)      Develop Grant Criteria. – The Trustees shall develop criteria for awarding grants under this Article. The criteria developed shall include consideration of the following:

(2)        The objectives of the various basinwide management plans for the State's river basins and watersheds.

…."

SECTION 14.8.(f)  G.S. 113A‑259 reads as rewritten:

"§ 113A‑259.  Clean Water Management Trust Fund: Advisory Council.

There is established the Clean Water Management Trust Fund Advisory Council. The Council shall advise the Trustees with regard to allocations made from the Fund, and other issues as requested by the Trustees. The Council shall be composed of the following or its designees:

(1)        Commissioner of Agriculture.

(2)        Chair of the Wildlife Resources Commission.

(3)        Secretary of Environment and Natural Resources.

(4)        Secretary of the Department of Commerce.

(5)        Secretary of the Department of Cultural Resources."

 

Water Quality Remediation Funds

SECTION 14.8A.  Of the funds appropriated in this act to the Clean Water Management Trust Fund, the sum of one million dollars ($1,000,000) shall be used for the remediation and mitigation of stormwater impacts to lakes subject to a Nutrient Management Strategy approved by the Environmental Management Commission.

 

COMMERCIAL FISHING LICENSES

SECTION 14.9.(a)  The General Assembly finds that additional funding is necessary to support the Division of Marine Fisheries' At‑Sea Observer Program and for the continued viability of the commercial fishing industry in North Carolina.

SECTION 14.9.(b)  G.S. 113‑168.2 reads as rewritten:

"§ 113‑168.2.  Standard Commercial Fishing License.

(e)        Fees. – The annual SCFL fee for a resident of this State shall be two hundred fifty dollars ($250.00). four hundred dollars ($400.00). The annual SCFL fee for a person who is not a resident of this State shall be the amount charged to a resident of this State in the nonresident's state. In no event, however, may the fee be less than two hundred fifty dollars ($250.00). four hundred dollars ($400.00). For purposes of this subsection, a "resident of this State" is a person who is a resident within the meaning of:

(1)        Sub‑subdivisions a. through d. of G.S. 113‑130(4) and who filed a State income tax return as a resident of North Carolina for the previous calendar or tax year, or

(2)        G.S. 113‑130(4)e.

…."

SECTION 14.9.(c)  G.S. 113‑168.3(b) reads as rewritten:

"(b)      Eligibility; Fees. – Any individual who is 65 years of age or older and who is eligible for a SCFL under G.S. 113‑168.2 may apply for either a SCFL or RSCFL. An applicant for a RSCFL shall provide proof of age at the time the application is made. The annual fee for a RSCFL for a resident of this State shall be one hundred twenty‑five dollars ($125.00). two hundred dollars ($200.00). The annual fee for a RSCFL for a person who is not a resident of this State shall be one hundred sixty‑two dollars and fifty cents ($162.50). two hundred sixty dollars ($260.00). For purposes of this subsection, a "resident of this State" is a person who is a resident within the meaning of:

(1)        Sub‑subdivisions a. through d. of G.S. 113‑130(4) and who filed a State income tax return as a resident of North Carolina for the previous calendar or tax year, or

(2)        G.S. 113‑130(4)e."

SECTION 14.9.(d)  G.S. 113‑169.2 reads as rewritten:

"§ 113‑169.2.  Shellfish license for North Carolina residents without a SCFL.

(c)        Fees. – Shellfish licenses issued under this section shall be issued annually upon payment of a fee of thirty‑one dollars and twenty‑five cents ($31.25) fifty dollars ($50.00) upon proof that the license applicant is a North Carolina resident.

…."

SECTION 14.9.(e)  G.S. 113‑169.3 reads as rewritten:

"§ 113‑169.3.  Licenses for fish dealers.

(e)        Application Fee for New Fish Dealers. – An applicant for a new fish dealer license shall pay a nonrefundable application fee of sixty‑two dollars and fifty cents ($62.50) one hundred dollars ($100.00) in addition to the license category fees set forth in this section.

(f)         License Category Fees. – Every fish dealer subject to licensing requirements shall secure an annual license at each established location for each of the following activities transacted there, upon payment of the fee set out:

(1)        Dealing in oysters: $62.50.$100.00.

(2)        Dealing in scallops: $62.50.$100.00.

(3)        Dealing in clams: $62.50.$100.00.

(4)        Dealing in hard or soft crabs: $62.50.$100.00.

(5)        Dealing in shrimp, including bait: $62.50.$100.00.

(6)        Dealing in finfish, including bait: $62.50.$100.00.

(7)        Operating menhaden or other fish‑dehydrating or oil‑extracting processing plants: $62.50.$100.00.

(8)        Consolidated license (all categories): $375.00.$600.00.

…."

SECTION 14.9.(f)  G.S. 113‑169.5(b) reads as rewritten:

"(b)      The fee for a land or sell license for a vessel not having its primary situs in North Carolina is two hundred fifty dollars ($250.00), four hundred dollars ($400.00), or an amount equal to the nonresident fee charged by the nonresident's state, whichever is greater. Persons aboard vessels having a primary situs in a jurisdiction that would allow North Carolina vessels without restriction to land or sell their catch, taken outside the jurisdiction, may land or sell their catch in the State without complying with this section if the persons are in possession of a valid license from their state of residence."

SECTION 14.9.(g)  G.S. 113‑173(f) reads as rewritten:

"(f)       Duration; Fees. – The RCGL shall be valid for a one‑year period from the date of purchase. The fee for a RCGL for a North Carolina resident shall be forty‑three dollars and seventy‑five cents ($43.75). seventy dollars ($70.00). The fee for a RCGL for an individual who is not a North Carolina resident shall be three hundred twelve dollars and fifty cents ($312.50).five hundred dollars ($500.00)."

SECTION 14.9.(h)  G.S. 113‑210 reads as rewritten:

"§ 113‑210.  Under Dock Oyster Culture.

(l)         Fees. – Under Dock Oyster Culture Permit shall be issued annually upon payment of a fee of one hundred dollars ($100.00).

(m)       Advance Sale of Permits; Permit Revenue. – To ensure an orderly transition from one permit year to the next, the Division may issue a permit prior to July 1 of the permit year for which the permit is valid. Revenue that the Division receives for the issuance of a permit prior to the beginning of a permit year shall not revert at the end of the fiscal year in which the revenue is received and shall be credited and available to the Division for the permit year in which the permit is valid."

SECTION 14.9.(i)  G.S. 143B‑289.54 reads as rewritten:

"§ 143B‑289.54.  Marine Fisheries Commission – members; appointment; term; oath; ethical standards; removal; compensation; staff.

(g)        Ethical Standards. –

(1)        Covered persons. – All members of the Commission are covered persons for the purposes of Chapter 138A of the General Statutes and shall comply with the applicable requirements of that Chapter, including mandatory training, the public disclosure of economic interests, provisions for avoidance of conflicts of interest, and ethical standards for covered persons.

(1)(1a)       Disclosure Additional disclosure statements. – Any person under consideration for appointment to the Commission shall provide both a financial disclosure statement and a potential bias disclosure statement an additional disclosure statement to the Governor. A financial disclosure statement shall include statements of the nominee's financial interests in and related to State fishery resources use, licenses issued by the Division of Marine Fisheries held by the nominee or any business in which the nominee has a financial interest, and uses made by the nominee or by any business in which the nominee has a financial interest of the regulated resources. A potential bias disclosure statement shall include a statement of the nominee's membership or other affiliation with, including offices held, in societies, organizations, or advocacy groups pertaining to the management and use of the State's coastal fishery resources.Governor, which shall include the following:

a.         The nominee's financial interests in and related to State fishery resources.

b.         Licenses issued by the Division of Marine Fisheries and Wildlife Resources Commission held by the nominee or any business in which the nominee has a financial interest.

c.         The nominee's membership in, affiliation with, or employment by any organization or group pertaining to the management or use of the State's fisheries or wildlife resources.

            Disclosure statements shall be treated as public records under Chapter 132 of the General Statutes and shall be updated on an annual basis.

(2)        Voting/conflict of interest. – A member of the Commission shall not vote on any issue before the Commission that would have a "significant and predictable effect" on the member's financial interest. For purposes of this subdivision, "significant and predictable effect" means there is or may be a close causal link between the decision of the Commission and an expected disproportionate financial benefit to the member that is shared only by a minority of persons within the same industry sector or gear group. A member of the Commission shall also abstain from voting on any petition submitted by an advocacy group of which the member is an officer or sits as a member of the advocacy group's board of directors. A member of the Commission shall not use the member's official position as a member of the Commission to secure any special privilege or exemption of substantial value for any person. No member of the Commission shall, by the member's conduct, create an appearance that any person could improperly influence the member in the performance of the member's official duties.

(3)        Regular attendance. – It shall be the duty of each member of the Commission to regularly attend meetings of the Commission.

(h)        Removal. – The Governor may remove, as provided in G.S. 143B‑13, any member of the Commission for misfeasance, malfeasance, or nonfeasance. For purposes of this subsection, malfeasance shall include, but is not limited to, any of the following:

(1)        Any criminal conviction of a member for violation of any hunting or fishing laws of the State or rules promulgated by the Marine Fisheries Commission or Wildlife Resources Commission.

(2)        Any citation of a member or a company owned, in whole or in part, by the member for violation of any hunting or fishing laws of the State or rules promulgated by the Marine Fisheries Commission or Wildlife Resources Commission.

…."

SECTION 14.9.(j)  Fifty percent (50%) of the fees collected under this section for the 2014‑2015 and all subsequent fiscal years shall be used to support the At‑Sea Observer Program.

SECTION 14.9.(k)  It is the intent of the General Assembly to use the increase in fees authorized by this section for support of the At‑Sea Observer Program and to study permissible ways to establish a fishing resource fund and entity charged with reviewing and cooperating in the approval of use of moneys from the fund.

SECTION 14.9.(l)  Subsections (b), (c), (d), (e), (f), and (g) of this section are effective when they become law and apply to fees collected for the 2015‑2016 and all succeeding license years.

 

DIVISION OF MARINE FISHERIES JOINT ENFORCEMENT AGREEMENTS

SECTION 14.11.(a)  G.S. 113‑224 reads as rewritten:

"§ 113‑224.  Cooperative agreements by Department.

(a)        The Department is empowered to enter into cooperative agreements with public and private agencies and individuals respecting the matters governed in this Subchapter. Pursuant to such agreements the Department may expend funds, assign employees to additional duties within or without the State, assume additional responsibilities, and take other actions that may be required by virtue of such agreements, in the overall best interests of the conservation of marine and estuarine resources.

(b)        The Fisheries Director or a designee of the Fisheries Director shall enter into an agreement with the National Marine Fisheries Service of the United States Department of Commerce allowing Division of Marine Fisheries inspectors to accept delegation of law enforcement powers over matters within the jurisdiction of the National Marine Fisheries Service."

SECTION 14.11.(b)  G.S. 128‑1.1 is amended by adding a new subsection to read:

"(c2)     Inspectors of the Division of Marine Fisheries of the Department of Environment and Natural Resources may also assume law enforcement powers granted to the National Marine Fisheries Service as set forth in G.S. 113‑224(b)."

 

PERMIT ELECTRONIC TRANSMISSION OF RULES

SECTION 14.13.  G.S. 113‑221 reads as rewritten:

"§ 113‑221.  Rules.

(b)        Upon purchasing a license, each licensee shall be given provided access to a copy of the rules concerning the activities authorized by the license. The copy may be in written or electronic form, including by file download over the Internet. A written copy of the rules shall be provided to a licensee upon request.

(c)        The Fisheries Director shall notify licensees of a new rule or change to a rule by sending each licensee either a newsletter containing the text of the rule or change or an updated codification of the rules of the Marine Fisheries Commission that contains the new rule or change. The Director may elect to use electronic means rather than mail to notify licensees if electronic means would be more timely and cost‑effective. A written copy of any notification produced in accordance with this section shall be provided to a licensee upon request.

…."

 

Natural Heritage Program Online Access Fees

SECTION 14.13A.(a)  Article 9A of Chapter 113A of the General Statutes is amended by adding the following new section to read:

"§ 113A‑164.12.  Access to information; fees.

(a)        The Secretary may establish fees to defray the costs associated with any of the following:

(1)        Responding to inquiries requiring customized environmental review services or the costs associated with developing, improving, or maintaining technology that supports an online interface for external users to access Natural Heritage Program data. The Secretary may reduce or waive the fee established under this subsection if the Secretary determines that a waiver or reduction of the fee is in the public interest.

(2)        Any activity authorized under G.S. 113A‑253(8e), including an inventory of natural areas conducted under the Natural Heritage Program, conservation and protection planning, and informational programs for owners of natural areas, as defined in G.S. 113A‑164.3.

(b)        Fees collected under this section are receipts of the Department of Environment and Natural Resources and shall be deposited in the Clean Water Management Trust Fund for the purpose of supporting the operations of the Natural Heritage Program."

SECTION 14.3A.(b)  G.S. 113A‑253(c)(8e) reads as rewritten:

"(8e)     To authorize expenditures from the Fund not to exceed the sum of seven hundred fifty thousand dollars ($750,000) and any fees collected under G.S. 113A‑164.12 to pay for the inventory of natural areas conducted under the Natural Heritage Program established pursuant to the Nature Preserves Act, Article 9A of Chapter 113A of the General Statutes, and to pay for conservation and protection planning and for informational programs for owners of natural areas, as defined in G.S. 113A‑164.3."

 

CDBG INFRASTRUCTURE ELIGIBLE ACTIVITIES CLARIFICATION

SECTION 14.15.  Section 15.14(g) of S.L. 2013‑360, as amended by Section 5.16(c) of S.L. 2013‑363, reads as rewritten:

"SECTION 15.14.(g) For purposes of this section, eligible activities under the category of Infrastructure in subsection (a) of this section are limited to critical public water and wastewater projects. projects and associated connections to the new lines located on private property of eligible homeowners, consistent with federal law. Notwithstanding any State law or rule, eligible activities as defined in this subsection are limited only by applicable HUD regulations and federal law. Notwithstanding the provisions of subsection (e) of this section, funds allocated to the Infrastructure category in subsection (a) of this section shall not be reallocated to any other category."

 

WATER INFRASTRUCTURE

SECTION 14.17.  The Department of Environment and Natural Resources, Division of Water Infrastructure, shall require all local governments applying for loans or grants for water or wastewater purposes to certify that no funds received from water or wastewater utility operations have been transferred to the local government's General Fund for the purpose of supplementing the resources of the General Fund. The prohibition in this section shall not be interpreted to include payments made to the local government to reimburse the General Fund for expenses paid from that Fund that are reasonably allocable to the regular and ongoing operations of the utility, including, but not limited to, rent and shared facility costs, engineering and design work, plan review, and shared personnel costs.

 

Grants to Municipalities in Tier I and II Counties for Water AND Sewer Infrastructure Improvements

SECTION 14.17A.  Of the funds appropriated in this act to the Department of Environment and Natural Resources, the sum of five hundred thousand dollars ($500,000) shall be allocated for grants to municipalities in development tier I and development tier II areas as those tiers are defined in G.S. 143B‑437.08 for water and sewer infrastructure development projects. Notwithstanding Chapter 159G or any other provision of law, the grants shall be used for projects that serve a public purpose related to the provision of water and sewer service to local government or educational facilities.

 

AMEND SHALLOW DRAFT NAVIGATION CHANNEL AND LAKE DREDGING FUNDING

SECTION 14.18.(a)  G.S. 105‑449.126 reads as rewritten:

"§ 105‑449.126.  Distribution of part of Highway Fund allocation to Wildlife Resources Fund and Shallow Draft Navigation Channel and Lake Dredging Fund.

(a)        The Secretary shall credit to the Wildlife Resources Fund one‑sixth of one percent (1/6 of 1%) of the amount that is allocated to the Highway Fund under G.S. 105‑449.125 and is from the excise tax on motor fuel. Revenue credited to the Wildlife Resources Fund under this section may be used only for the boating and water safety activities described in G.S. 75A‑3(c). The Secretary must credit revenue to the Wildlife Resources Fund on an annuala quarterly basis. The Secretary must make the distribution within 45 days of the end of each quarter.

(b)        The Secretary shall credit to the Shallow Draft Navigation Channel and Lake Dredging Fund one‑sixth of one percent (1/6 of 1%) of the amount that is allocated to the Highway Fund under G.S. 105‑449.125 and is from the excise tax on motor fuel. Revenue credited to the Shallow Draft Navigation Channel and Lake Dredging Fund under this section may be used only for the dredging activities described in G.S. 143‑215.73F. The Secretary shall credit revenue to the Shallow Draft Navigation Channel and Lake Dredging Fund on an annuala quarterly basis. The Secretary must make the distribution within 45 days of the end of each quarter."

SECTION 14.18.(b)  Notwithstanding G.S. 105‑449.125, the funds credited to the Wildlife Resources Fund and the Shallow Draft Navigation Channel and Lake Dredging Fund for the first quarter of calendar year 2014 shall be distributed August 15, 2014. Notwithstanding G.S. 105‑449.125, the funds credited to the Wildlife Resources Fund and the Shallow Draft Navigation Channel and Lake Dredging Fund for the last quarter of calendar year 2014 shall be allocated to the Highway Trust Fund.

SECTION 14.18.(c)  Notwithstanding G.S. 105‑449.125, in addition to the funds credited under G.S. 105‑449.126 the Secretary of Revenue shall also credit the sum of one million six hundred seventy-seven thousand one hundred thirty-four dollars ($1,677,134) to the Shallow Draft Navigation Channel and Lake Dredging Fund for the 2014‑2015 fiscal year no later than August 15, 2014. The funds distributed shall be from the funds collected under Article 36C of Chapter 105 of the General Statutes from the effective date of this act until August 15, 2014.

SECTION 14.18.(d)  Section 14.18(a) is effective for quarters beginning on or after January 1, 2014. The remainder of this section is effective when it becomes law.

 

Aquatic Weed Control

SECTION 14.19.(a)  Under the authority granted by G.S. 113A‑227, the Secretary of the Department of Environment and Natural Resources may adopt rules necessary to implement the provisions relative to boat washing for aquatic weed prevention measures, including rules relating to monitoring and enforcement.

SECTION 14.19.(b)  G.S. 143‑215.73F reads as rewritten:

"§ 143‑215.73F.  Shallow Draft Navigation Channel Dredging and Lake Dredging Maintenance Fund.

The Shallow Draft Navigation Channel Dredging and Lake Dredging Maintenance Fund is established as a special revenue fund. The Fund consists of fees credited to it under G.S. 75A‑3, 75A‑38, and 105‑449.126. Revenue in the Fund may only be used to provide the State's share of the costs associated with any dredging project designed to keep shallow draft navigation channels located in State waters or waters of the state located within lakes navigable and safe. safe, or for aquatic weed control projects in waters of the State located within lakes under Article 22C of Chapter 113 of the General Statutes. Funding for aquatic weed control projects is limited to five hundred thousand dollars ($500,000) in each fiscal year. Any project funded by revenue from the Fund Fund, with the exception of aquatic weed control projects, must be cost-shared with non-State dollars on a one-to-one basis. For purposes of this section, "shallow draft navigation channel" means (i) a waterway connection with a maximum depth of 16 feet between the Atlantic Ocean and a bay or the Atlantic Intracoastal Waterway, (ii) a river entrance to the Atlantic Ocean through which tidal and other currents flow, or (iii) other interior coastal waterways. "Shallow draft navigation channel" includes the Atlantic Intracoastal Waterway and its side channels, Beaufort Harbor, Bogue Inlet, Carolina Beach Inlet, the channel from Back Sound to Lookout Back, channels connected to federal navigation channels, Lockwoods Folly River, Manteo/Shallowbag Bay, including Oregon Inlet, Masonboro Inlet, New River, New Topsail Inlet, Rodanthe, Rollinson, Shallotte River, Silver Lake Harbor, and the waterway connecting Pamlico Sound and Beaufort Harbor."

 

COAL ASH MANAGEMENT

SECTION 14.20.  Of the funds appropriated in this act to the Department of Environment and Natural Resources for coal ash management, the Department may use up to five hundred ninety‑six thousand dollars ($596,000) in lapsed salary and operating funds in fiscal year 2014‑2015 to purchase scientific equipment and two new vehicles to support the ongoing surveys and regulatory activities related to coal ash management activities in the State.

 

REDIRECT INTEREST ON CERTAIN ENVIRONMENTAL FUNDS

SECTION 14.21.(a)  G.S. 143B‑289.59 reads as rewritten:

"§ 143B‑289.59.  Conservation Fund; Commission may accept gifts.

(b)        The Marine Fisheries Commission is hereby authorized to issue and sell appropriate emblems by which to identify recipients thereof as contributors to a special marine and estuarine resources Conservation Fund that shall be made available to the Marine Fisheries Commission for conservation, protection, enhancement, preservation, and perpetuation of marine and estuarine species that may be endangered or threatened with extinction and for education about these issues. The special Conservation Fund is subject to oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes.Statutes, except that interest and other income received on the Fund balance shall be treated as set forth in G.S. 147‑69.1(d). Emblems of different sizes, shapes, types, or designs may be used to recognize contributions in different amounts, but no emblem shall be issued for a contribution amounting in value to less than five dollars ($5.00)."

SECTION 14.21.(b)  G.S. 143‑215.104C reads as rewritten:

"§ 143‑215.104C.  Dry‑Cleaning Solvent Cleanup Fund.

(a)        Creation. – The Dry‑Cleaning Solvent Cleanup Fund is established as a special revenue fund to be administered by the Commission. Accordingly, revenue in the Fund at the end of a fiscal year does not revert and interest and other investment income earned by the Fund must be credited to it.revert. The Fund is created to provide revenue to implement this Part.

…."

SECTION 14.21.(c)  G.S. 87‑98 reads as rewritten:

"§ 87‑98.  Bernard Allen Memorial Emergency Drinking Water Fund.

(a)        The Bernard Allen Memorial Emergency Drinking Water Fund is established under the control and direction of the Department. The Fund shall be a nonreverting, interest‑bearingnonreverting fund consisting of monies appropriated by the General Assembly or made available to the Fund from any other source and investment interest credited to the Fund.source.

…."

SECTION 14.21.(d)  G.S. 90A‑42 reads as rewritten:

"§ 90A‑42.  Fees.

(b)        The Water Pollution Control System Account is established as a nonreverting account within the Department. Fees collected under this section shall be credited to the Account and applied to the costs of administering this Article. Interest and other income received on the Fund balance shall be treated as set forth in G.S. 147‑69.1(d)."

SECTION 14.21.(e)  G.S. 143‑215.94B reads as rewritten:

"§ 143‑215.94B.  Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund.

(e)        The Commercial Fund shall be treated as a special trust fund and shall be credited with interest by the State Treasurer pursuant to G.S. 147‑69.2 and G.S. 147‑69.3.G.S. 147‑69.3, except that interest and other income received on the Fund balance shall be treated as set forth in G.S. 147‑69.1(d).

…."

SECTION 14.21.(f)  G.S. 143‑215.94D reads as rewritten:

"§ 143‑215.94D.  Noncommercial Leaking Petroleum Underground Storage Tank Cleanup Fund.

(e)        The Noncommercial Fund shall be treated as a special trust fund and shall be credited with interest by the State Treasurer pursuant to G.S. 147‑69.2 and G.S. 147‑69.3.G.S. 147‑69.3, except that interest and other income received on the Fund balance shall be treated as set forth in G.S. 147‑69.1(d).

…."

SECTION 14.21.(g)  G.S. 130A‑310.11 reads as rewritten:

"§ 130A‑310.11.  Inactive Hazardous Sites Cleanup Fund created.

(a)        There is established under the control and direction of the Department the Inactive Hazardous Sites Cleanup Fund. This fund shall be a revolving fund consisting of any monies appropriated for such purpose by the General Assembly or available to it from grants, taxes, and other monies paid to it or recovered by or on behalf of the Department. The Inactive Hazardous Sites Cleanup Fund shall be treated as a nonreverting special trust fund and shall be credited with interest by the State Treasurer pursuant to G.S. 147‑69.2 and G.S. 147‑69.3.G.S. 147‑69.3, except that interest and other income received on the Fund balance shall be treated as set forth in G.S. 147‑69.1(d).

…."

SECTION 14.21.(h)  G.S. 130A‑310.38 reads as rewritten:

"§ 130A‑310.38.  Brownfields Property Reuse Act Implementation Account.

The Brownfields Property Reuse Act Implementation Account is created as a nonreverting interest‑bearing account in the Office of the State Treasurer. The Account shall consist of fees and interest collected under G.S. 130A‑310.39, moneys appropriated to it by the General Assembly, moneys received from the federal government, moneys contributed by private organizations, and moneys received from any other source. Funds in the Account shall be used by the Department to defray the costs of implementing this Part. The Department may contract with a private entity for any services necessary to implement this Part."

 

I & M AIR POLLUTION CONTROL ACCOUNT

SECTION 14.22.  The Division of Air Quality of the Department of Environment and Natural Resources shall use the cash balance remaining in the I & M Air Pollution Control Account for operations in the 2014‑2015 fiscal year related to the development and implementation of air pollution control programs for mobile sources.

 

WATER AND AIR QUALITY ACCOUNT

SECTION 14.23.  The Division of Air Quality of the Department of Environment and Natural Resources shall use the cash balance remaining in the Water and Air Quality Account to administer its programs in fiscal year 2014‑2015.

 

SOLID WASTE DISPOSAL TAX CONFORMING CHANGE

SECTION 14.24.  G.S. 130A‑295.9 reads as rewritten:

"§ 130A‑295.9.  Solid waste disposal tax; use of proceeds.

It is the intent that the proceeds of the solid waste disposal tax imposed by Article 5G of Chapter 105 of the General Statutes shall be used only for the following purposes:

(2)        Funds credited pursuant to G.S. 105‑187.63(3) to the Solid Waste Management Trust Fund shall be used by the Department of Environment and Natural Resources to fund grants to State agencies and units of local government to initiate or enhance local recycling programs and to provide for the management of difficult to manage solid waste, including abandoned mobile homes and household hazardous waste. Up to seven percent (7%) of the funds credited under this subdivision may be used by the Department to administer this Part."

 

Eliminate Waste Management Fee Cap

SECTION 14.24A.  G.S. 130A‑294.1(c) is repealed.

 

Department of Environment and Natural Resources Management Flexibility

SECTION 14.24B.(a)  Notwithstanding S.L. 2013‑360 and G.S. 143C‑6‑4, the Department of Environment and Natural Resources may take the two million dollar ($2,000,000) reduction from sources other than efficiencies created by consolidating the Divisions of Water Resources and Water Quality, subject to the following restrictions:

(1)        No State attraction proposed for closure in the Appropriations Act of 2014, S.B. 744, 2013 Regular Session, as passed by either the Senate or the House of Representatives but not adopted when the Appropriations Act of 2014 becomes law, may be included in the reduction by the Department.

(2)        No program or item expansion funds appropriated for the 2013-2015 fiscal biennium to the Department shall be used to offset the management flexibility reduction under this section.

SECTION 14.24B.(b)  The Department shall report on the reductions made as required by this section no later than October 1, 2014, to the chairs of the Senate Appropriations Committee on Natural and Economic Resources, the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, and the Fiscal Research Division.

 

WILDLIFE LICENSING CHANGES

SECTION 14.25.(a)  G.S. 113‑270.3(b)(1b) reads as rewritten:

"(b)      The special activity licenses and stamp issued by the Wildlife Resources Commission are as follows:

(1b)      Bear Management Stamp – $10.00. This electronically generated stamp must be procured before taking any bear within the State. Notwithstanding any other provision of law, a resident or nonresident individual may not take any bear within the State without procuring this stamp; provided, that those persons who have purchased a lifetime license established by G.S. 113‑270.1D(b), 113‑270.2(c)(2), or 113‑351(c)(3) prior to July 1, 2014, and those persons exempt from the license requirements as set forth in G.S. 113‑276(c) G.S. 113‑276(c), G.S. 113‑276(d), and G.S. 113‑276(n) shall obtain this stamp free of charge. All of the revenue generated by this stamp shall be dedicated to black bear research and management."

SECTION 14.25.(b)  G.S. 113‑174.2 reads as rewritten:

"§ 113‑174.2.  Coastal Recreational Fishing License.

(c)        Types of CRFLs; Fees; Duration. – The Wildlife Resources Commission shall issue the following CRFLs:

(1)        Annual Resident CRFL. – $15.00. This license is valid for a period of one year from the date of issuance.from the date of issue for a period of 12 months as defined by G.S. 113‑270.1B(b) and G.S. 113‑270.1B(c). This license shall be issued only to an individual who is a resident of the State.

(1a)      Annual Nonresident CRFL. – $30.00. This license is valid for a period of one year from the date of issuance. from the date of issue for a period of 12 months as defined by G.S. 113‑270.1B(b) and G.S. 113‑270.1B(c). This license shall be issued only to an individual who is not a resident of the State.

(2)        Repealed by Session Laws 2005‑455, s. 1.4, effective January 1, 2007.

(3)        Repealed by Session Laws 2005‑455, s. 1.4, effective January 1, 2007.

(4)        Ten‑Day Resident CRFL. – $5.00. This license is valid for a period of 10 consecutive days, as indicated on the license. This license shall be issued only to an individual who is a resident of the State.

(4a)      Ten‑Day Nonresident CRFL. – $10.00. This license is valid for a period of 10 consecutive days, as indicated on the license. This license shall be issued only to an individual who is not a resident of the State.

(5)        Repealed by Session Laws 2005‑455, s. 1.4, effective January 1, 2007.

(6)        Lifetime CRFLs. – Except as provided in sub‑subdivision j. of this subdivision, CRFLs issued under this subdivision are valid for the lifetime of the licensee.

a. –d.   Repealed by Session Laws 2005‑455, s. 1.4, effective January 1, 2007.

e.         Infant Lifetime CRFL. – $100.00. This license shall be issued only to an individual younger than one year of age.

f.          Youth Lifetime CRFL. – $150.00. This license shall be issued only to an individual who is one year of age or older but younger than 12 years of age.

g.         (Effective until August 1, 2014) Resident Adult Lifetime CRFL. – $250.00. This license shall be issued only to an individual who is 12 years of age or older but younger than 65 years of age and who is a resident of the State.

g.         (Effective August 1, 2014) Resident Adult Lifetime CRFL. – $250.00. This license shall be issued only to an individual who is 12 years of age or older but younger than 70 years of age and who is a resident of the State.

h.         Nonresident Adult Lifetime CRFL. – $500.00. This license shall be issued only to an individual who is 12 years of age or older and who is not a resident of the State.

i.          (Effective until August 1, 2014) Resident Age 65 Lifetime CRFL. – $15.00. This license shall be issued only to an individual who is 65 years of age or older and who is a resident of the State.

i.          (Effective August 1, 2014) Resident Age 70 Lifetime CRFL. – $15.00. This license shall be issued only to an individual who is 70 years of age or older and who is a resident of the State.

j.          Resident Disabled Veteran CRFL. – $10.00. This license shall be issued only to an individual who is a resident of the State and who is a fifty percent (50%) or more disabled veteran as determined by the United States Department of Veterans Affairs. Affairs or as established by G.S. 113‑351(c)(3)(f). This license remains valid for the lifetime of the licensee so long as the licensee remains fifty percent (50%) or more disabled.

k.         Resident Totally Disabled CRFL. – $10.00. This license shall be issued only to an individual who is a resident of the State and who is totally and permanently disabled as determined by the Social Security Administration.Administration or as established by G.S. 113‑351(c)(3)(g).

…."

SECTION 14.25.(c)  G.S. 113‑173 reads as rewritten:

"§ 113‑173.  Recreational Commercial Gear License.

(f)         Duration; Fees. – The RCGL shall be valid for a one‑year period from the date of purchase. from the date of issue for a period of 12 months as defined by G.S. 113‑270.1B(b) and G.S. 113‑270.1B(c). The fee for a RCGL for a North Carolina resident shall be forty‑three dollars and seventy‑five cents ($43.75). The fee for a RCGL for an individual who is not a North Carolina resident shall be three hundred twelve dollars and fifty cents ($312.50).

…."

SECTION 14.25.(d)  G.S. 113‑351 reads as rewritten:

"§ 113‑351.  Unified hunting and fishing licenses; subsistence license waiver.

(a)        Definitions. – The definitions set out in G.S. 113‑174 apply to this Article.

(b)        General Provisions Governing Licenses and Waivers. – The general provisions governing licenses set out in G.S. 113‑174.1 apply to licenses and waivers issued under this section.

(c)        Types of Unified Hunting and Fishing Licenses; Fees; Duration. – The Wildlife Resources Commission shall issue the following Unified Hunting and Fishing Licenses:

(1)        Annual Resident Unified Sportsman/Coastal Recreational Fishing License. – $55.00. This license is valid for a period of one year from the date of issuance. from the date of issue for a period of 12 months as defined by G.S. 113‑270.1B(b) and G.S. 113‑270.1B(c). This license shall be issued only to an individual who is a resident of the State. This license authorizes the licensee to take all wild animals and wild birds, including waterfowl, by all lawful methods in all open seasons, including the use of game lands; to fish with hook and line for all fish in all inland fishing waters and joint fishing waters, including public mountain trout waters; and to engage in recreational fishing in coastal fishing waters.

(2)        Annual Resident Unified Inland/Coastal Recreational Fishing License. – $35.00. This license is valid for a period of one year from the date of issuance. from the date of issue for a period of 12 months as defined by G.S. 113‑270.1B(b) and G.S. 113‑270.1B(c). This license shall be issued only to an individual who is a resident of the State. This license authorizes the licensee to fish with hook and line for all fish in all inland fishing waters and joint fishing waters, including public mountain trout waters, and to engage in recreational fishing in coastal fishing waters.

…."

SECTION 14.25.(e)  G.S. 113‑270.1D reads as rewritten:

"§ 113‑270.1D.  Sportsman licenses.

(a)        Annual Sportsman License – $50.00. This license shall be issued only to an individual resident of the State and entitles the licensee to take all wild animals and wild birds, including waterfowl, by all lawful methods in all open seasons, including the use of game lands, and to fish with hook and line for all fish in all inland and joint fishing waters, including public mountain trout waters. An annual sportsman license issued under this subsection does not entitle the licensee to engage in recreational fishing in coastal fishing waters that are not joint fishing waters.

(b)        Lifetime Sportsman Licenses. Except as provided in subdivision (7) of this subsection, lifetime sportsman licenses are valid for the lifetime of the licensees. Lifetime sportsman licenses entitle the licensees to take all wild animals and wild birds by all lawful methods in all open seasons, including the use of game lands, and to fish with hook and line for all fish in all inland and joint fishing waters, including public mountain trout waters. A lifetime sportsman license issued under this subsection does not entitle the licensee to engage in recreational fishing in coastal fishing waters that are not joint fishing waters. Lifetime sportsman licenses issued by the Wildlife Resources Commission are:

(3)        Adult Resident Lifetime Sportsman License – $500.00. This license shall be issued only to an individual resident of the State.State who is 12 years of age or older but younger than 70 years of age.

(4)        Nonresident Lifetime Sportsman License – $1,200 $1,200. This license shall be issued only to an individual nonresident of the State.

(5)        Age 70 Resident Lifetime Sportsman License – $15.00.This license shall be issued only to an individual resident of the State who is at least 70 years of age.

(6)        Repealed by Session Laws 2005‑455, s. 1.7 effective January 1, 2007.

(7)        Resident Disabled Veteran Lifetime Sportsman License – $100.00. This license shall be issued only to an individual who is a resident of the State and who is a fifty percent (50%) or more disabled veteran as determined by the United States Department of Veterans Affairs or as established by rules of the Wildlife Resources Commission. This license remains valid for the lifetime of the licensee so long as the licensee remains fifty percent (50%) or more disabled.

(8)        Resident Totally Disabled Lifetime Sportsman License – $100.00. This license shall be issued only to an individual who is a resident of the State and who is totally and permanently disabled as determined by the Social Security Administration or as established by rules of the Wildlife Resources Commission."

SECTION 14.25.(f)  Subsections (a) and (e) of this section become effective August 1, 2014.

 

TRANSFER RESPONSIBILITY FOR DEER OVERSIGHT TO DACS

SECTION 14.26.(a)  Article 49H of Chapter 106 of the General Statutes reads as rewritten:

"Article 49H.

"Production and SaleProduction, Sale, Transportation, and Licensing of Fallow Deer and Red Deer.

"§ 106‑549.97.  Regulation by Department of Agriculture and Consumer Services of certain cervids produced and sold for commercial purposes; certain authority of North Carolina Wildlife Resources Commission not affected;definitions.

(a)        The Department of Agriculture and Consumer Services shall regulate the production and sale of farmed cervids. The Board of Agriculture shall adopt rules for the production and sale of farmed cervids in such a manner as to provide for close supervision of any person, firm, or corporation producing and selling farmed cervids and shall notify any such person, firm, or corporation that the activity is subject to compliance with Wildlife Resources Commission rules pursuant to G.S. 113‑272.6.cervids.

(b)        The North Carolina Wildlife Resources Commission shall regulate the possession and transportation, including importation and exportation, of cervids pursuant to G.S. 113‑272.6.

(c)        The following definitions apply in this Article:

(1)        Repealed by Session Laws 2003‑344, s. 11, effective July 27, 2003.

(2)        Repealed by Session Laws 2003‑344, s. 11, effective July 27, 2003.

(3)        Cervid or Cervidae. – All animals in the Family Cervidae (elk and deer).

(4)        Farmed Cervid. – Any member of the Cervidae family, other than white‑tailed deer, elk, mule deer, or black‑tailed deer, that is bought and sold for commercial purposes.

(5)        White‑tailed deer. – A member of the species Odocoileus virginianus."

"§ 106‑549.97A.  Transportation of cervids and licensing of captive cervid facilities.

(a)        The Department of Agriculture and Consumer Services shall regulate the transportation, including importation and exportation, and possession of cervids. The Board of Agriculture shall adopt rules to implement this section, including requirements for captivity licenses, captivity permits, and transportation permits. The rules adopted pursuant to this section shall establish standards of care for the transportation and possession of cervids, including requirements for fencing, tagging, record keeping, and inspection of captive cervid facilities. Notwithstanding any other provision of law, the Board may charge a fee of up to fifty dollars ($50.00) for the processing of applications for captivity licenses, captivity permits, and transportation permits, and the renewal or modification of those licenses and permits. The fees collected shall be applied to the costs of administering this section.

(b)        Every applicant for a transportation permit shall comply with the Department's requirements for transportation pursuant to Article 34 of Chapter 106 of the General Statutes.

(c)        Notwithstanding any other provision of law, the Board shall issue captivity licenses, captivity permits, or transportation permits to any person possessing cervids that were held in captivity by that person prior to May 17, 2002, if the Commissioner finds that the applicant has come into compliance with all applicable rules related to the holding of cervids in captivity by January 1, 2004, and that issuance of such license or permit does not pose unreasonable risk to the conservation of wildlife resources.

(d)        Any captivity license, captivity permit, or cervids held contrary to the provisions of this section may be subject to forfeiture and disposition in accordance with the provisions of this Article.

(e)        The Board shall issue rules requiring that any applicant for a transportation permit indemnify or provide another form of financial assurance acceptable to the Board to protect the State from any costs or liabilities related to the activities authorized by the permit.

"§ 106‑549.99.  Regulations for control and prevention of diseases and disorders.

The Commissioner may adopt regulations and procedures for the disposition of cervids infected with diseases or disorders or kept or moved in violation of this Article and pursuant regulations. Such regulations may authorize the Commissioner to quarantine, destroy, confiscate, or otherwise dispose of, eradicate, establish cleanup areas, and require owners to disinfect, fumigate, treat with drugs, or destroy cervids at their own expense or to take measures to eradicate cervid diseases or disorders.

The Commissioner shall have authority to allow, require, or forbid use of drugs in the control of cervid diseases or disorders and may define as infested or infected symptomless carriers of a disease or disorder and consider cervids which have been exposed to a disease or disorder to be infected or infested. The Commissioner may take emergency action pursuant to the provisions in this Article if needed to protect the cervid industry in North Carolina or wild cervid populations. Such action shall remain in force until rescinded by the Commissioner.

"§ 106‑549.100.  Designation of persons to administer Article; inspections.

The Commissioner shall have the authority to designate such employees of the Department or persons collaborating with the Department as may seem expedient to carry out the duties and exercise the powers provided by this Article. The Commissioner is authorized to survey or inspect premises of any person maintaining a population of cervids, inspect cervids for diseases and disorders, and otherwise enforce the provisions of this Article and associated regulations. The Commissioner or his or her designated agent shall have authority to enter upon any premises to inspect any cervids to determine the presence or absence of diseases or disorders.

Such inspections and other activities may be conducted with the permission of the owner or person in charge. If permission is denied the Commissioner or his or her designated agent, the inspections and other activities may be conducted in a reasonable manner, with a warrant, with respect to any premises or vehicles. The warrant shall be issued pursuant to Article 4A of Chapter 15 of the General Statutes. A superior court judge may issue confiscation orders on any cervids for which confiscation is authorized in this Article or pursuant regulations.

"§ 106‑549.101.  Penalties.

The Commissioner may assess a civil penalty of not more than ten thousand dollars ($10,000) against a person who violates this Article or a rule adopted to implement this Article. In determining the amount of the penalty, the Commissioner shall consider the degree and extent of harm caused by the violation. No civil penalty may be assessed under this section unless the person has been given the opportunity for a hearing pursuant to the Administrative Procedure Act, Chapter 150B of the General Statutes. If not paid within 30 days after the effective date of a final decision by the Commissioner, the penalty may be collected by any lawful means for the collection of a debt. The clear proceeds of civil penalties assessed pursuant to this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2."

SECTION 14.26.(b)  G.S. 113‑272.6 reads as rewritten:

"§ 113‑272.6.  Transportation of cervids and licensing of captive cervid facilities.Regulation of hunted cervid carcasses.

(a)        The Wildlife Resources Commission shall regulate the transportation, including importation and exportation, and possession of cervids, including cervid game carcasses and parts of cervid game carcasses extracted by hunters. The Commission shall adopt rules to implement this section, including requirements for captivity licenses, captivity permits, and transportation permits. The rules adopted pursuant to this section shall establish standards of care for the transportation and possession of cervids, including requirements for fencing, tagging, record keeping, and inspection of captive cervid facilities.section. Notwithstanding any other provision of law, the Commission may charge a fee of up to fifty dollars ($50.00) for the processing processing of applications for captivity licenses, captivity permits, and transportation permits, and the renewal or modification of those licenses and permits.for permits issued under this section and the renewal or modification of those permits. The fees collected shall be applied to the costs of administering this section.

(b)        The Wildlife Resources Commission shall notify every applicant for a transportation permit that any permit issued is subject to the applicant's compliance with the Department of Agriculture and Consumer Services' requirements for transportation pursuant to Article 34 of Chapter 106 of the General Statutes.

(c)        The Department of Agriculture and Consumer Services shall regulate the production and sale of farmed cervids for commercial purposes pursuant to G.S. 106‑549.97.

(d)        Notwithstanding any other provision of law, the North Carolina Wildlife Resources Commission shall issue captivity licenses, captivity permits, or transportation permits to any person possessing cervids that were held in captivity by that person prior to May 17, 2002, if the Executive Director finds that the applicant has come into compliance with all applicable rules related to the holding of cervids in captivity by January 1, 2004, and that issuance of such license or permit does not pose unreasonable risk to the conservation of wildlife resources.

(e)        Any captivity license, captivity permit, or cervids held contrary to the provisions of this section may be subject to forfeiture and disposition in accordance with the provisions of G.S. 113‑137 or G.S. 113‑276.2."

SECTION 14.26.(c)  The Department of Agriculture and Consumer Services shall study the risks associated with the spread of Chronic Wasting Disease, also known as transmissible spongiform encephalopathy, due to the importation of cervids from outside the State. The Department shall report no later than February 1, 2015, to the Chairs of the Appropriations Subcommittee on Natural and Economic Resources of the House of Representatives, the Chairs of the Appropriations Committee on Natural and Economic Resources of the Senate, and the Fiscal Research Division with its proposals and recommendations for the best methods of minimizing the potential cost to the State associated with containment, condemnation, and mitigation costs associated with an outbreak of Chronic Wasting Disease in the State.

SECTION 14.26.(d)  The Commissioner shall not issue a transportation permit for the importation of cervids into the State prior to July 1, 2015.

 

Interstate Chemicals Clearinghouse

SECTION 14.27.  The Department of Environment and Natural Resources is authorized to join the Interstate Chemicals Clearinghouse for the purpose of access to key data necessary to enhance safety in the use of toxic substances.

 

Water and Sewer funds/forest City

SECTION 14.28.  Of the funds appropriated in this act to the Department of Environment and Natural Resources for grants to local governments for critical needs water infrastructure development grants, the sum of seventeen thousand five hundred dollars ($17,500) shall be allocated to the town of Forest City for a water line extension.

 

PART XV. DEPARTMENT OF COMMERCE

 

Transfer ABC COMMISSION to Department of Public Safety

SECTION 15.2A.(a)  The North Carolina Alcoholic Beverage Control Commission is hereby transferred to the Department of Public Safety. This transfer shall have all of the elements of a Type II transfer, as described in G.S. 143A‑6.

SECTION 15.2A.(b)  G.S. 143B‑431(a)(2)a. is repealed.

SECTION 15.2A.(c)  G.S. 143B‑433(1)a. is repealed.

SECTION 15.2A.(d)  G.S. 18B‑200(a) reads as rewritten:

"§ 18B‑200.  North Carolina Alcoholic Beverage Control Commission.

(a)        Creation of Commission; compensation. – The North Carolina Alcoholic Beverage Control Commission is created to consist of a chairman and two associate members. The Commission shall be administratively located within the Department of Public Safety but shall exercise its powers independently of the Secretary of Public Safety. The chairman shall devote his full time to his official duties and receive a salary fixed by the General Assembly in the Current Operations Appropriations Act. The associate members shall be compensated for per diem, subsistence and travel as provided in Chapter 138 of the General Statutes."

SECTION 15.2A.(e)  G.S. 143B‑600 reads as rewritten:

"§ 143B‑600.  Organization.

(a)        There is established the Department of Public Safety. The head of the Department of Public Safety is the Secretary of Public Safety, who shall be known as the Secretary.

(b)        The powers and duties of the deputy secretaries, commissioners, directors, and the divisions of the Department shall be subject to the direction and control of the Secretary of Public Safety.Safety, except that the powers and duties of the North Carolina Alcoholic Beverage Control Commission shall be exercised independently of the Secretary, in accordance with G.S. 18B‑200."

SECTION 15.2A.(f)  This section becomes effective October 1, 2014.

 

SET REGULATORY FEE FOR UTILITIES COMMISSION

SECTION 15.2B.  Section 15.1(a) of S.L. 2013‑360 reads as rewritten:

"SECTION 15.1.(a)  The percentage rate to be used in calculating the public utility regulatory fee under G.S. 62‑302(b)(2) is thirteen one‑hundredths of one percent (0.13%) fourteen one-hundredths of one percent (0.14%) for each public utility's North Carolina jurisdictional revenues earned during each quarter that begins on or after July 1, 2013, and on or after July 1, 2014."

 

REPEAL COMMERCE FLEXIBILITY TO REORGANIZE DEPARTMENT

SECTION 15.3.  Section 15.7A of S.L. 2013‑360 is repealed.

 

COMMERCE FUNDS USED FOR BASE REALIGNMENT AND CLOSURE ACTIVITIES

SECTION 15.4.(a)  Funds appropriated to the Department of Commerce for the 2013‑2014 fiscal year that are unexpended and unencumbered as of June 30, 2014, shall not revert to the General Fund but shall remain available to the Department until expended for use in the State's preparation for United States Department of Defense Base Realignment and Closure activities.

SECTION 15.4.(b)  This section becomes effective June 30, 2014.

 

SPECIAL FUNDS TRANSFER/OFFSET COMMERCE ADMINISTRATION GENERAL FUND APPROPRIATION

SECTION 15.5.(a)  The Office of State Budget and Management, in conjunction with the Office of the State Controller and the Department of Commerce, shall transfer the unencumbered cash balances in the following funds as of June 30, 2014, to Commerce Administration (Budget Code 14600‑1111):

(1)        24609‑2537 – Energy Research Grants

(2)        24609‑2535 – NC Green Business Fund

(3)        24609‑2562 – One North Carolina Small Business Fund

(4)        24613‑2622 – Main Street Solutions

SECTION 15.5.(b)  The Office of State Budget and Management, in conjunction with the Office of the State Controller and the Department of Commerce, shall transfer the unencumbered cash balance in the Economic Development Reserve (Budget Code 24609‑2584) as of June 30, 2014, to Commerce Administration (Budget Code 14600‑1111) and, upon the transfer, close the Reserve.

SECTION 15.5.(c)  The transfers in subsections (a) and (b) of this section are to offset General Fund appropriations to the Department of Commerce for administration.

 

COMMON FOLLOW‑UP/COSTS SHARED BY STATE AGENCIES & LEAD DEVELOP PLAN TO TRANSFER COMMON FOLLOW‑UP DATA AND CAPABILITIES TO GDAC

SECTION 15.6.(a)  The Commission on Workforce Development (hereinafter "Commission") shall prescribe a method for calculating the amount each of the agencies listed in this subsection shall contribute to fund the Common Follow‑Up System at a cost of five hundred thousand dollars ($500,000) on a nonrecurring basis. In developing the method, the Commission shall consider each agency's proportion of data contribution and System usage. The agencies that shall contribute to fund the Common Follow‑Up System are as follows:

(1)        Department of Public Safety, Division of Adult Correction.

(2)        Department of Public Instruction.

(3)        Department of Commerce, Division of Workforce Solutions.

(4)        Department of Health and Human Services, Division of Services for the Blind; Division of Social Services; and Division of Vocational Rehabilitation Services.

(5)        North Carolina Community College System.

(6)        The University of North Carolina.

SECTION 15.6.(b)  The agencies listed in subsection (a) of this section shall transfer their share of the funds needed to fund the Common Follow‑Up System, which shall be determined using the method prescribed by the Commission, to the Department of Commerce, Labor & Economic Analysis Division, no later than December 31, 2014.

SECTION 15.6.(c)  The Department of Commerce, Labor & Economic Analysis Division (LEAD), shall develop a plan to transfer the information in and required capabilities of the Common Follow‑Up System to the Government Data Analytics Center (GDAC). By February 1, 2015, the Department shall submit the plan to the Office of the State Chief Information Officer, the Joint Legislative Oversight Committee on Information Technology, and the Fiscal Research Division.

 

MERGE ACCESS NC & DEMAND DRIVEN DATA DELIVERY SYSTEMS/NC BROADBAND REPORTING REQUIREMENT

SECTION 15.7.(a)  Of the funds appropriated in this act to the Department of Commerce, the Department shall use the sum of two hundred fifty thousand dollars ($250,000) in the 2014‑2015 fiscal year in nonrecurring funds to merge Access NC and Demand Driven Data Delivery to eliminate the duplication of effort in maintaining multiple economic and labor market data systems. By February 1, 2015, and more frequently as requested, the Department shall report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on the progress of the merger, including whether there are improved efficiencies and cost savings.

SECTION 15.7.(b)  By February 1, 2015, and more frequently as requested, the Office of the State Chief Information Officer shall report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on NC Connect activities, including providing an update on how NC Broadband in the Department of Commerce has been incorporated into NC Connect.

 

ECONOMIC DEVELOPMENT COMPETITIVE GRANT PROGRAM FOR UNDERSERVED AND LIMITED RESOURCE COMMUNITIES

SECTION 15.8. Section 15.10B(a) of S.L. 2013‑360 reads as rewritten:

"SECTION 15.10B.(a)  Of the funds appropriated in this act to the Department of Commerce (Department), the sum of two million five hundred forty‑three thousand twenty‑one dollars ($2,543,021)one million two hundred fifty thousand dollars ($1,250,000) for the 2014‑2015 fiscal year in recurring funds shall be allocated for the Economic Development Competitive Grant Program for Underserved and Limited Resource Communities. The Department shall establish and implement this Program to provide grants to local governments and/or nonprofit organizations to encourage the development of economic development activities, services, and projects that benefit underserved populations and limited resource communities across the State."

 

COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE MATCHING FUNDS

SECTION 15.9.(a)  Of the funds appropriated in this act to the Department of Commerce, the sum of six hundred thirty‑seven thousand five hundred dollars ($637,500) in recurring funds for the 2014‑2015 fiscal year shall be used to meet the State matching funds requirement for Community Development Block Grant (CDBG) funds. All or a portion of these funds shall be used to purchase and install a new grants management software program in the 2014‑2015 fiscal year.

SECTION 15.9.(b)  Effective July 1, 2014, the Secretary of Commerce shall reduce expenditures in the amount of six hundred thirty‑seven thousand five hundred dollars ($637,500) in recurring funds for the 2014‑2015 fiscal year for the Rural Economic Development Division. However, the Secretary shall not make reductions as provided in this subsection to any grant programs administered by the Rural Economic Development Division. The recurring reductions provided for in this subsection shall be used to offset the cash‑match funds appropriated in subsection (a) of this section.

SECTION 15.9.(c)  The Department shall provide the remaining required State match funds in‑kind by taking the necessary steps to ensure that positions with salaries equaling the sum of six hundred thirty‑seven thousand five hundred dollars ($637,500) in recurring funds for the 2014‑2015 fiscal year shall be dedicated full time to performing duties related to CDBG activities. To satisfy the in‑kind requirement provided for in this subsection, the Department may include positions in the Department of Environment and Natural Resources, CDBG‑Infrastructure, that are funded by the General Fund.

SECTION 15.9.(d)  By February 1, 2015, the Department shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division regarding (i) the positions eliminated as provided in this section and associated funding and (ii) the manner in which the State match will be achieved and how it will be reported to the United States Department of Housing and Urban Development, CDBG Administration.

 

USE OF DEOBLIGATED COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS

SECTION 15.9A.  The Department of Commerce may use the sum of five million nine hundred eight thousand four hundred ninety‑seven dollars ($5,908,497) in deobligated Community Development Block Grant (CDBG) funds as follows:

(1)        Five million dollars ($5,000,000) for providing public services. The category of public services includes providing substance abuse services and employment services, including job training, to homeless and at‑risk veterans in rural areas of the State.

(2)        Nine hundred eight thousand four hundred ninety‑seven dollars ($908,497) for providing training and guidance to local governments relative to the CDBG program, its management, and administration requirements.

 

RURAL ECONOMIC DEVELOPMENT DIVISION/LOANS & GRANTS TO LOCAL GOVERNMENTS TO REUSE OR DEMOLISH BUILDINGS AND PROPERTIES

SECTION 15.10.  G.S. 143B‑472.127 reads as rewritten:

"§ 143B‑472.127.  Programs administered.

(a)        The Rural Economic Development Division shall be responsible for administering the program whereby economic development grants or loans are awarded by the Rural Infrastructure Authority as provided in G.S. 143B‑472.128 to local government units. The Rural Infrastructure Authority shall, in awarding economic development grants or loans under the provisions of this subsection, give priority to local government units of the counties that have one of the 80 highest rankings under G.S. 143B‑437.08 after the adjustment of that section. The funds available for grants or loans under this program may be used as follows:

(2)        To provide matching grants or loans to local government units in an economically distressed county that will productively reuse vacant or demolish buildings and properties or construct or expand rural health care facilities facilities, with priority given to towns or communities with populations of less than 5,000. For purposes of this section, the term "economically distressed county" has the same meaning as in G.S. 143B‑437.01.

…."

 

RURAL ECONOMIC DEVELOPMENT DIVISION/NONRECURRING FUNDS USED FOR GRANTS ONLY

SECTION 15.10A.  The Department of Commerce, Rural Economic Development Division, shall use nonrecurring funds appropriated in this act for the 2014‑2015 fiscal year only for the purpose of making grants as provided in Part 22 of Article 10 of Chapter 143B of the General Statutes. The Department of Commerce, Rural Economic Development Division, shall not use nonrecurring funds appropriated in this act for the 2014‑2015 fiscal year for administrative or any other expenses, but shall use those funds only for the purpose provided for in this section.

 

COMMERCE STUDY ADJUSTMENTS TO DEVELOPMENT FACTORS USED IN MAKING DEVELOPMENT TIER DESIGNATIONS

SECTION 15.10B.(a)  The Department of Commerce (Department) shall study factors that may be used to make an adjustment to a county's development tier designation regardless of the county's actual development factor assigned under G.S. 143B‑437.08(b). The adjustment factors considered shall include, at a minimum, events or occurrences that negatively impact a county's rate of unemployment, median household income, percentage growth in population, and assessed value per capita. The Department shall also consider aligning the State's development tier designations with the U.S. Housing and Urban Development entitlement designations.

SECTION 15.10B.(b)  By February 1, 2015, the Department of Commerce shall report the findings of its study to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division.

 

TRAVEL AND TOURISM BOARD/APPPOINTMENTS

SECTION 15.10C.  G.S. 143B‑434.1 reads as rewritten:

"§ 143B‑434.1.  The North Carolina Travel and Tourism Board – creation, duties, membership.

(c)        The Board shall consist of 29 31 members as follows:

(18)      One member designated by the Commissioner of Agriculture, who shall have expertise in agritourism.

(19)      One member designated by the Secretary of the Department of Environment and Natural Resources, who shall represent the State Parks System."

…."

 

LiDAR RESERVE/TOPOGRAPHICAL MAPPING OF THE STATE

SECTION 15.12.(a)  Part 1 of Article 13 of Chapter 143B of the General Statutes is amended by adding a new section to read as follows:

"§ 143B‑603.  LiDAR Reserve.

The "LiDAR Reserve" is established in the Department of Public Safety. Funds in the LiDAR Reserve shall only be used for LiDAR topographical mapping of the State."

SECTION 15.12.(b)  The Office of State Budget and Management, in conjunction with the Office of the State Controller and the Department of Commerce, shall transfer the cash balances in the following funds as of June 30, 2014, to the LiDAR Reserve in the Department of Public Safety:

(1)        24602‑2959 – Disaster Relief Fund, Small Business Loans (Hurricane Floyd) – ($122,243).

(2)        24602‑2966 – Disaster Relief Fund, Small Business Loans (2005 Disaster Recovery) – ($3,097,757).

 

AGRICULTURE GAS EXPANSION FUND

SECTION 15.13.(a)  G.S. 143B‑437.020 is repealed.

SECTION 15.13.(b)  This section is effective when it becomes law.

 

FUND ONE NC SMALL BUSINESS FUND

SECTION 15.14.  Of the funds remaining in the One North Carolina Fund established in G.S. 143B‑437.71 at the end of fiscal year 2013‑2014, an amount equal to two million five hundred thousand dollars ($2,500,000) shall be transferred to the One North Carolina Small Business Fund and used for the North Carolina SBIR/STTR Incentive Program and the North Carolina SBIR/STTR Matching Funds Program.

 

Main Street Solutions Funding

SECTION 15.14A.  Of the funds unexpended and unencumbered in the Industrial Development Fund Utility Account, the sum of one million dollars ($1,000,000) shall be transferred to the Main Street Solutions Fund to supplement the program for the 2014‑2015 fiscal year.

 

EMPLOYMENT SECURITY RESERVE FUND

SECTION 15.15.  Section 15.4(a) of S.L. 2013‑360 reads as rewritten:

"SECTION 15.4.(a)  There is appropriated from the Employment Security Reserve Fund to the Department of Commerce, Division of Employment Security, the amount needed for the 2013‑20142014‑2015 fiscal year to fund the interest payment due to the federal government for the debt owed to the U.S. Treasury for unemployment benefits."

 

APPOINTMENT OF DEPUTY COMMISSIONERS FOR INDUSTRIAL COMMISSION

SECTION 15.16.(a)  G.S. 97‑79(b) reads as rewritten:

"(b)      The Commission may appoint deputies who shall have the same power as members of the Commission pursuant to G.S. 97‑80 and the same power to take evidence, and enter orders, opinions, and awards based thereon as is possessed by the members of the Commission. The deputies shall be subject to the State Personnel System.The Chair of the Commission may appoint deputy commissioners to serve a term of eight years. Deputy commissioners shall have the same power as members of the Commission pursuant to G.S. 97‑80 and the same power to take evidence and enter orders, opinions, and awards based thereon as is possessed by the members of the Commission. Upon the expiration of the initial or subsequent term or terms of any deputy commissioner, the deputy commissioner's employment shall be separated unless the deputy commissioner is reappointed by the Chair of the Commission. Deputy commissioners shall not be subject to the State Personnel System nor to the provisions of G.S. 126‑5(d)(7)."

SECTION 15.16.(b)  As of August 1, 2014, the terms of all current deputy commissioners are as follows:

(1)        The seven deputy commissioners with the least time of service shall each serve a term of six months expiring February 1, 2015.

(2)        The seven deputy commissioners with the next least time of service shall each serve a term of 12 months expiring August 1, 2015.

(3)        The remaining deputy commissioners not covered under subdivision (1) or (2) of this subsection shall each serve a term of 18 months expiring February 1, 2016.

(4)        Time of service shall be calculated beginning with the hire date of the person as a deputy commissioner.

(5)        Nothing in this section shall prohibit a current deputy commissioner from being eligible for reappointment to an eight‑year term, as provided by subsection (a) of this section.

SECTION 15.16.(c)  Section 60(b) of S.L. 2013‑413 is repealed.

SECTION 15.16.(d)  Notwithstanding G.S. 97‑31.1, this section is effective when it becomes law.

 

WORKERS' COMPENSATION/REIMBURSEMENT FOR PRESCRIPTION DRUGS AND PROFESSIONAL PHARMACEUTICAL SERVICES

SECTION 15.16A.  Article 1 of Chapter 97 of the General Statutes is amended by adding a new section to read as follows:

"§ 97‑26.2.  Reimbursement for prescription drugs and professional pharmaceutical services.

(a)        The reimbursement for prescription drugs and professional pharmaceutical services shall be limited to one hundred five percent (105%) of the average wholesale price (AWP) of the product, calculated on a per‑unit basis, as of the date of dispensing.

(b)        All of the following shall apply to the reimbursement for prescription drugs and professional pharmaceutical services:

(1)        A health care provider seeking reimbursement for drugs dispensed by a physician shall include the original manufacturer's National Drug Code (NDC) number, as assigned by the United States Food and Drug Administration, on the bills and reports required by this section.

(2)        In no event may a physician receive reimbursement in excess of one hundred five percent (105%) of the AWP of the drugs dispensed by a physician, as determined by reference to the original manufacturer's NDC number.

(3)        A repackaged NDC number may not be used and will not be considered the original manufacturer's NDC number. If a health care provider seeking reimbursement for drugs dispensed by a physician does not include the original manufacturer's NDC number on the bills and reports required by this section, reimbursement shall be limited to one hundred ten percent (110%) of the AWP of the least expensive clinically equivalent drug, calculated on a per‑unit basis.

(4)        No outpatient provider, other than a licensed pharmacy, may receive reimbursement for narcotics dispensed in excess of an initial five‑day supply, commencing upon the employee's initial treatment following injury. Reimbursement under this subdivision shall be made for the five‑day supply at the rates provided in this section.

(5)        For purposes of this section, the term "clinically equivalent" means a drug has chemical equivalents which, when administered in the same amounts, will provide essentially the same therapeutic effect as measured by the control of a symptom or disease."

 

Industrial Commission Fees

SECTION 15.16B.(a)  G.S. 97‑73 reads as rewritten:

"§ 97‑73.  Fees.

(a)        Claims. – The Except as provided in subsection (e) of this section, the Industrial Commission may establish by rule a schedule of fees for examinations conducted, reports made, documents filed, and agreements reviewed under this Article. The fees shall be collected in accordance with rules adopted by the Industrial Commission.

(b), (c) Repealed by Session Laws 2003‑284, s. 10.33(d), effective July 1, 2003.

(d)        Safety. – A fee in the amount set by the Industrial Commission is imposed on an employer for whom the Industrial Commission provides an educational training program on how to prevent or reduce accidents or injuries that result in workers' compensation claims or a person for whom the Industrial Commission provides other educational services. The fees are departmental receipts.

(e)        Exceptions. – Notwithstanding subsection (a) of this section, the Industrial Commission may not charge fees for any of the following:

(1)        A hearing before a Deputy Commissioner under this Chapter.

(2)        A hearing before the full Commission under this Chapter.

(3)        Processing of an agreement for compensation of disability, an employer's admission of employee's right to permanent partial disability, or a supplemental agreement as to payment of compensation."

SECTION 15.16B.(b)  This section becomes effective July 1, 2015.

 

NC BIOTECHNOLOGY CENTER

SECTION 15.17.  Section 15.30 of S.L. 2013‑360 reads as rewritten:

"SECTION 15.30.(a)  Of the funds appropriated in this act to the North Carolina Biotechnology Center (hereinafter "Center"), the sum of twelve million six hundred thousand three hundred thirty‑eight dollars ($12,600,338) for each fiscal year in the 2013‑2015 biennium shall be allocated as follows:

(1)        Job Creation: Ag Biotech Initiative, Economic and Industrial Development, and related activities – $2,709,073;

(2)        Science and Commercialization: Science and Technology Development, Centers of Innovation, Business and Technology Development, Education and Training, and related activities – $8,165,019; and

(3)        Center Operations: Administration, Professional and Technical Assistance and Oversight, Corporate Communications, Human Resource Management, Financial and Grant Administration, Legal, and Accounting – $1,726,246.

"SECTION 15.30.(a1)  The Center shall prioritize funding and distribution of loans over existing funding and distribution of grants.

"SECTION 15.30.(b)  Except to provide administrative flexibility, up to ten percent (10%) of each of the allocations in subsection (a) of this section may be reallocated to one or more of the other allocations in subsection (a) of this section if, in the judgment of Center management, the reallocation will advance the mission of the Center.

"SECTION 15.30.(c)  The Center shall comply with the following reporting requirements:

(1)        By September 1 of each year, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on prior State fiscal year program activities, objectives, and accomplishments and prior State fiscal year itemized expenditures and fund sources.

(2)        Provide to the Fiscal Research Division a copy of the Center's annual audited financial statement within 30 days of issuance of the statement.

"SECTION 15.30.(d)  Of the funds appropriated in this act to the Center, the sum of three million six hundred thousand dollars ($3,600,000) for the 2014‑2015 fiscal year in nonrecurring funds shall be allocated as follows:

(1)        Continued efforts growing the Ag Biotech sector – $500,000.

(2)        Concentrated attention on biodefense cluster effort – $1,100,000.

(3)        New industry/university partnership grant program – $2,000,000."

 

RESEARCH TRIANGLE INSTITUTE ENERGY RESEARCH

SECTION 15.18.  The Research Triangle Institute shall share with the State Energy Office any research supported wholly or partially through funds appropriated by this act that pertains to energy or energy efficiency.

 

GRASSROOTS SCIENCE PROGRAM

SECTION 15.19.  Section 15.25A of S.L. 2013‑360 reads as rewritten:

"SECTION 15.25A.(a)  Of the funds appropriated in this act to the Department of Commerce for State‑Aid, the sum of two million three hundred forty‑seven thousand seven hundred eighty‑two dollars ($2,347,782) for the 2013‑2014 fiscal year and the sum of two million three hundred forty‑seven thousand seven hundred eighty‑two dollars ($2,347,782) for the 2014‑2015 fiscal year are allocated as grants‑in‑aid for each fiscal year as follows:

                                                                                         2013‑2014                         2014‑2015

The Health Adventure Museum of Pack

Place Education, Arts and

Science Center, Inc.                                                 $73,352                               $73,352

"SECTION 15.25A.(f)  Each museum listed in subsection (a) of this section shall do the following:

(1)        By September 1 of each year, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on prior State fiscal year program activities, objectives, and accomplishments and prior State fiscal year itemized expenditures and fund sources.

(2)        Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement."

 

THE SUPPORT CENTER/FUNDS

SECTION 15.21.(a)  Of the funds appropriated in this act to the Department of Commerce, the sum of one million dollars ($1,000,000) for the 2014‑2015 fiscal year in nonrecurring funds shall be allocated to The Support Center.

SECTION 15.21.(b)  The Support Center shall do the following:

(1)        By September 1 of each year, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on prior State fiscal year program activities, objectives, and accomplishments and prior State fiscal year itemized expenditures and fund sources.

(2)        Provide to the Fiscal Research Division a copy of the Center's annual audited financial statement within 30 days of issuance of the statement.

 

PART XVI. DEPARTMENT OF PUBLIC SAFETY

 

SUBPART XVI‑A. GENERAL PROVISIONS

 

GOVERNOR'S CRIME COMMISSION

SECTION 16A.2.  G.S. 143B‑1101(b) reads as rewritten:

"(b)      The Governor's Crime Commission shall review the level of gang activity throughout the State and assess the progress and accomplishments of the State, and of local governments, in preventing the proliferation of gangs and addressing the needs of juveniles who have been identified as being associated with gang activity.

The Governor's Crime Commission shall develop recommendations concerning the establishment of priorities and needed improvements with respect to gang prevention to the General Assembly and shall report those recommendations to the Chairs of the Senate Appropriations Committee on Justice and Public Safety, the Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety, and to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety on or before March 1 of each year."

 

Limited Authority to Reclassify and Eliminate Certain Positions

SECTION 16A.3.  Notwithstanding any other provision of law, subject to the approval of the Director of the Budget, the Secretary of the Department of Public Safety may reclassify or eliminate existing administrative positions that are not specifically addressed in this act as needed for the efficient operation of the Department. The Secretary of the Department of Public Safety shall report any position reclassification undertaken pursuant to this section to the Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety, the Chairs of the Senate Appropriations Committee on Justice and Public Safety, and the Fiscal Research Division within 30 days of the reclassification. The report shall include the position number, original title, original fund code, original budgeted salary, new title, new fund code, and new budgeted salary for each reclassified position.

 

SUBPART XVI‑B. DIVISION OF LAW ENFORCEMENT

 

COMPLIANCE WITH CJIS DATA SECURITY STANDARDS

SECTION 16B.1.  The Department of Public Safety shall use funds available to the Division of Law Enforcement to ensure compliance with applicable Federal Bureau of Investigation security standards relating to the access of data in its Criminal Justice Information System. The Department is encouraged to use funds transferred to the State from federal asset forfeiture programs for this purpose.

 

ABC PERMIT FEE INCREASE

SECTION 16B.2.(a)  G.S. 18B‑903 reads as rewritten:

"§ 18B‑903.  Duration of permit; renewal and transfer.

(b)        Renewal. – Application for renewal of an ABC permit shall be on a form provided by the Commission. An application for renewal shall be accompanied by an application fee of twenty‑five percent (25%) of the original application fee set in G.S. 18B‑902, fee. The application fee shall be the same amount as the initial fee set in G.S. 18B‑902, except that the renewal application fee for each wine shop permit shall be five hundred dollars ($500.00), and the renewal application fee for each mixed beverages permit and each guest room cabinet permit shall be seven hundred fifty dollars ($750.00).one thousand dollars ($1,000). A renewal fee shall not be refundable.

(b1)      Registration. – Each person holding a malt beverage, fortified wine, or unfortified wine permit issued pursuant to G.S. 18B‑902(d)(1) through G.S. 18B‑902(d)(6) shall register by May 1 of each year on a form provided by the Commission, in order to provide information needed by the State in enforcing this Chapter and to support the costs of that enforcement. The registration required by this subsection shall be accompanied by an annual registration and inspection fee of two hundred dollars ($200.00)four hundred dollars ($400.00) for each permit held. The fee shall be paid by May 1 of each year. A registration fee shall not be refundable. Failure to pay the annual registration and inspection fee shall result in revocation of the permit.

…."

SECTION 16B.2.(b)  This section applies to fees assessed or collected for permits issued or renewed on or after July 1, 2014.

 

ESTABLISH HAZARDOUS MATERIALS FACILITY FEE/NEW HAZMAT RESPONSE TEAM

SECTION 16B.3.(a)  G.S. 166A‑21 reads as rewritten:

"§ 166A‑21.  Definitions.

As used in this Article:The following definitions apply in this Article:

(1)        Department. – The Department of Public Safety.

(2)        Division. – The Division of Emergency Management.

(1)(3)   "Hazardous materials emergency response team" or "hazmat team" means an Hazardous materials emergency response team or hazmat team. – An organized group of persons specially trained and equipped to respond to and control actual or potential leaks or spills of hazardous materials.

(2)(4)   "Hazardous material" means any Hazardous material. – Any material defined as a hazardous substance under 29 Code of Federal Regulations § 1910.120(a)(3).

(3)(5)   "Hazardous materials incident" or "hazardous materials emergency" means anHazardous materials incident or hazardous materials emergency. – An uncontrolled release or threatened release of a hazardous substance requiring outside assistance by a local fire department or hazmat team to contain and control.

(4)(6)   "Regional response team" means a Regional response team. – A hazmat team under contract with the State to provide response to hazardous materials emergencies occurring outside the hazmat team's local jurisdiction at the direction of the Department of Public Safety, Division of Emergency Management.

(5)(7)   "Secretary" means the Secretary. – The Secretary of the Department of Public Safety.

(6)(8)   "Technician‑level entry capability" means the Technician‑level entry capability. – The capacity of a hazmat team, in terms of training and equipment as specified in 29 Code of Federal Regulations § 1910.120, to respond to a hazardous materials incident requiring affirmative measures, such as patching, plugging, or other action necessary to stop and contain the release of a hazardous substance at its source.

(7)(9)   "Terrorist incident" means activities Terrorist incident. – Activities that occur within the territorial jurisdiction of the United States, involve acts dangerous to human life that are a violation of the criminal laws of the United States or of any state, and are intended to do one of the following:

a.         Intimidate or coerce a civilian population.

b.         Influence the policy of a government by intimidation or coercion.

c.         Affect the conduct of a government by mass destruction, assassination, or kidnapping."

SECTION 16B.3.(b)  Article 2 of Chapter 166A of the General Statutes is amended by adding a new section to read:

"§ 166A‑29.1.  Hazardous materials facility fee.

(a)        Definitions. – The following definitions apply in this section:

(1)        EPCRA. – The federal Emergency Planning and Community Right‑to‑Know Act, P.L. No. 99‑499 et. seq.

(2)        Hazardous chemical. – As defined in 29 C.F.R. 1910.1200(c), except that the term does not include any of the following:

a.         Any food, food additive, color additive, drug, or cosmetic regulated by the Food and Drug Administration.

b.         Any substance present as a solid in any manufactured item to the extent exposure to the substance does not occur under normal conditions of use.

c.         Any substance to the extent that it is used for personal, family, or household purposes or is present in the same form and concentration as a product packaged for distribution and use by the public.

d.         Any substance to the extent that it is used in a research laboratory or a hospital or other medical facility under the direct supervision of a technically qualified individual.

e.         Any substance to the extent that it is used in routine agricultural operations or is a fertilizer held for sale by a retailer to the ultimate consumer.

(3)        Extremely hazardous substance. – Any substance, regardless of its state, set forth in 40 C.F.R. Part 355, Appendix A or B.

(b)        Annual Fee Shall Be Charged. – A person required under Section 302 or 312 of EPCRA to submit a notification or an annual inventory form to the Division shall be required to pay to the Department an annual fee in the amount set forth in subsection (c) of this section.

(c)        Amount of Fee. – The amount of the annual fee charged pursuant to subsection (b) of this section shall be calculated in accordance with the following, up to a maximum annual amount of five thousand dollars ($5,000):

(1)        A fee of fifty dollars ($50.00) shall be assessed for each substance reported by a facility that is classified as a hazardous chemical.

(2)        A fee of ninety dollars ($90.00) shall be assessed for each substance reported by a facility that is classified as an extremely hazardous substance.

(d)        Late Fees. – The Division may impose a late fee for failure to submit a report or filing that substantially complies with the requirements of EPCRA by the federal filing deadline or for failure to pay any fee, including a late fee. This fee shall be in addition to the fee imposed pursuant to subsection (c) of this section. Prior to imposing a late fee, the Division shall provide the person who will be assessed the late fee with written notice that identifies the specific requirements that have not been met and informs the person of its intent to assess a late fee. The assessment of a late fee shall be subject to the following limitations:

(1)        If the report filing or fee is submitted within 30 days after receipt of the Division's notice that it intends to assess a late fee, no late fee shall be assessed.

(2)        If the report filing or fee has not been submitted by the end of the period set forth in subdivision (1) of this subsection, the Division may impose a late fee in an amount equal to the amount of the fee charged pursuant to subsection (c) of this section.

(e)        Exemptions. – No fee shall be charged under this section to any of the following:

(1)        An owner or operator of a family farm enterprise, a facility owned by a State or local government, or a nonprofit corporation.

(2)        An owner or operator of a facility where motor vehicle fuels are stored and from which such fuels are offered for retail sale. However, hazardous chemicals or extremely hazardous substances at such a facility, other than motor vehicle fuels for retail sale, shall not be subject to this exemption.

(f)         Use of Fee Proceeds. – The proceeds of fees assessed pursuant to this section shall be used for the following:

(1)        To pay costs associated with the maintenance of a hazardous materials database.

(2)        To support the operations of the regional response program for hazardous materials emergencies and terrorist incidents.

(3)        To provide grants to counties for hazardous materials emergency response planning, training, and related exercises."

SECTION 16B.3.(c)  The Department of Public Safety may establish and operate an additional hazmat team to serve Lee and Moore Counties and shall use proceeds from fees assessed and collected pursuant to G.S. 166A‑29.1 to ensure that the hazardous materials emergency response capabilities in Moore and Lee Counties are sufficient to respond to any hazardous materials emergencies occurring in those counties as a result of natural gas exploration and extraction.

SECTION 16B.3.(d)  G.S. 166A‑22 reads as rewritten:

"§ 166A‑22.  Hazardous materials emergency response program.

(a)        The Secretary shall adopt rules establishing a regional response program for hazardous materials emergencies and terrorist incidents, to be administered by the Division of Emergency Management. To the extent possible, the regional response program shall be coordinated with other emergency planning activities of the State. The regional response program shall include at least six seven hazmat teams located strategically across the State that are available to provide regional response to hazardous materials or terrorist incidents requiring technician‑level entry capability and 24‑hour dispatch and communications capability at the Division of Emergency Management Operations Center. The rules for the program shall include:

…."

SECTION 16B.3.(e)  This section applies to fees assessed on or after July 1, 2014.

 

Mobile VIPER Radios for the State Highway Patrol

SECTION 16B.5.  The Department of Public Safety shall use the sum of two million eight hundred ninety‑four thousand one hundred eighty‑eight dollars ($2,894,188) of funds available to the Division of Law Enforcement to purchase mobile VIPER radios for the State Highway Patrol. The Department is encouraged to use funds transferred to the State from federal asset forfeiture programs for this purpose.

 

STATE CAPITOL POLICE/RECEIPT-SUPPORTED POSITIONS

SECTION 16B.6.(a)  The State Capitol Police may contract with State agencies for the creation of receipt‑supported positions to provide security services to the buildings occupied by those agencies.

SECTION 16B.6.(b)  The State Capitol Police shall report the creation of any position pursuant to this section to the Chairs of the House Appropriations Subcommittee on Justice and Public Safety and to the Chairs of the Senate Appropriations Committee on Justice and Public Safety within 30 days of the position's creation.

 

Authorize Additional Assistant Adjutant General Position

SECTION 16B.7.  G.S. 127A‑19 reads as rewritten:

"§ 127A‑19.  Adjutant General.

The military head of the militia shall be the Adjutant General who shall hold the rank of major general. The Adjutant General shall be appointed by the Governor in the Governor's capacity as commander in chief of the militia, in consultation with the Secretary of Public Safety, and shall serve at the pleasure of the Governor. No person shall be appointed as Adjutant General who has less than five years' commissioned service in an active status in any component of the Armed Forces of the United States. The Adjutant General, while holding this office, may be a member of the active North Carolina National Guard or naval militia.

Subject to the approval of the Governor and in consultation with the Secretary of Public Safety, the Adjutant General may appoint (i) a deputy adjutant general who may hold the rank of major general, and (ii) an two assistant adjutant adjutants general for Army National Guard, and an assistant adjutant general for Air National Guard, each of whom may hold the rank of brigadier general and who shall serve at the pleasure of the Governor. The Adjutant General may also employ staff members and other personnel as authorized by the Secretary and funded."

 

SUBPART XVI‑C. DIVISION OF ADULT CORRECTION

 

ALL MISDEMEANANTS TO SERVE SENTENCES IN LOCAL CONFINEMENT FACILITIES

SECTION 16C.1.(a)  G.S. 15A‑1351(a) reads as rewritten:

"(a)       The judge may sentence to special probation a defendant convicted of a criminal offense other than impaired driving under G.S. 20‑138.1, if based on the defendant's prior record or conviction level as found pursuant to Article 81B of this Chapter, an intermediate punishment is authorized for the class of offense of which the defendant has been convicted. A defendant convicted of impaired driving under G.S. 20‑138.1 may also be sentenced to special probation. Under a sentence of special probation, the court may suspend the term of imprisonment and place the defendant on probation as provided in Article 82, Probation, and in addition require that the defendant submit to a period or periods of imprisonment in the custody of the Division of Adult Correction of the Department of Public Safety or a designated local confinement or treatment facility at whatever time or intervals within the period of probation, consecutive or nonconsecutive, the court determines.determines, as provided in this subsection. For probationary sentences for misdemeanors, including impaired driving under G.S. 20‑138.1, all imprisonment under this subsection shall be in a designated local confinement or treatment facility. In addition to any other conditions of probation which the court may impose, the court shall impose, when imposing a period or periods of imprisonment as a condition of special probation, the condition that the defendant obey the Rules and Regulations of the Division of Adult Correction of the Department of Public Safety governing conduct of inmates, and this condition shall apply to the defendant whether or not the court imposes it as a part of the written order. IfExcept for probationary sentences for misdemeanors, including impaired driving under G.S. 20‑138.1, if imprisonment is for continuous periods, the confinement may be in the custody of either the Division of Adult Correction of the Department of Public Safety or a local confinement facility. Noncontinuous periods of imprisonment under special probation may only be served in a designated local confinement or treatment facility. Except for probationary sentences of impaired driving under G.S. 20‑138.1, the total of all periods of confinement imposed as an incident of special probation, but not including an activated suspended sentence, may not exceed one‑fourth the maximum sentence of imprisonment imposed for the offense, and no confinement other than an activated suspended sentence may be required beyond two years of conviction. For probationary sentences for impaired driving under G.S. 20‑138.1, the total of all periods of confinement imposed as an incident of special probation, but not including an activated suspended sentence, shall not exceed one‑fourth the maximum penalty allowed by law. In imposing a sentence of special probation, the judge may credit any time spent committed or confined, as a result of the charge, to either the suspended sentence or to the imprisonment required for special probation. The original period of probation, including the period of imprisonment required for special probation, shall be as specified in G.S. 15A‑1343.2(d), but may not exceed a maximum of five years, except as provided by G.S. 15A‑1342(a). The court may revoke, modify, or terminate special probation as otherwise provided for probationary sentences."

SECTION 16C.1.(b)  G.S. 15A‑1352 reads as rewritten:

"§ 15A‑1352.  Commitment to Division of Adult Correction of the Department of Public Safety or local confinement facility.

(a)        AExcept as provided in subsection (f) of this section, a person sentenced to imprisonment for a misdemeanor under this Article or for nonpayment of a fine for conviction of a misdemeanor under Article 84 of this Chapter shall be committed for the term designated by the court to the custody of the Division of Adult Correction of the Department of Public Safety or to a local confinement facility. If the sentence imposed for a misdemeanor is for a period of 90 days or less, the commitment must be to a facility other than one maintained by the Division of Adult Correction of the Department of Public Safety, except as provided in G.S. 148‑32.1(b). If the sentence or sentences imposed require confinement for more than 180 days, the commitment must be to the custody of the Division of Adult Correction of the Department of Public Safety.Statewide Misdemeanant Confinement Program as provided in G.S. 148‑32.1 or, if the period is for 90 days or less, to a local confinement facility, except as provided for in G.S. 148‑32.1(b).

If a person is sentenced to imprisonment for a misdemeanor under this Article or for nonpayment of a fine under Article 84 of this Chapter, the sentencing judge shall may make a finding of fact as to whether the person would be suitable for placement in a county satellite jail/work release unit operated pursuant to G.S. 153A‑230.3. If the sentencing judge makes a finding of fact that the person would be suitable for placement in a county satellite jail/work release unit and the person meets the requirements listed in G.S. 153A‑230.3(a)(1), then the custodian of the local confinement facility may transfer the misdemeanant to a county satellite jail/work release unit.

(b)        A person sentenced to imprisonment for a felony under this Article or for nonpayment of a fine for conviction of a felony under Article 84 of this Chapter shall be committed for the term designated by the court to the custody of the Division of Adult Correction of the Department of Public Safety.

(c)        A person sentenced to imprisonment for nonpayment of a fine under Article 84, Fines, shall be committed for the term designated by the court:

(1)        To the custody of the Division of Adult Correction of the Department of Public Safety if the person was fined for conviction of a felony;

(2)        To the custody of the Division of Adult Correction of the Department of Public Safety or to a local confinement facility if the person was fined for conviction of a misdemeanor, provided that (i) if the sentence imposed is for a period of 90 days or less, the commitment shall be to a facility other than one maintained by the Division of Adult Correction of the Department of Public Safety, except as provided in  G.S. 148‑32.1(b) and (ii) if the sentence or sentences imposed require confinement for more than 180 days, the commitment must be to the custody of the Division of Adult Correction of the Department of Public Safety.

(d)        Notwithstanding any other provision of law, when the sentencing court, with the consent of the person sentenced, orders that a person convicted of a misdemeanor be granted work release, the court may commit the person to a specific prison facility or local confinement facility or satellite jail/work release unit within the county of the sentencing court in order to facilitate the work release arrangement. When appropriate to facilitate the work release arrangement, the sentencing court may, with the consent of the sheriff or board of commissioners, commit the person to a specific local confinement facility or satellite jail/work release unit in another county, or, with the consent of the Division of Adult Correction of the Department of Public Safety, commit the person to a specific prison facility in another county. The Division of Adult Correction of the Department of Public Safety may transfer a prisoner committed to a specific prison facility to a different facility when necessary to alleviate overcrowding or for other administrative purposes.county.

(e)        A person sentenced for a misdemeanor who has a sentence imposed that requires confinement for a period of more than 90 days and up to 180 days, except for those serving sentences for an impaired driving offense under G.S. 20‑138.1 under this Article or for nonpayment of a fine under Article 84 of this Chapter, shall be committed for the term designated by the court to confinement pursuant to the Statewide Misdemeanant Confinement Program established by G.S. 148‑32.1.

(f)         A person sentenced to imprisonment of any duration for impaired driving under G.S. 20‑138.1, other than imprisonment required as a condition of special probation under G.S. 15A‑1351(a) or G.S. 15A‑1344(e), shall be committed to the Statewide Misdemeanant Confinement Program established under G.S. 148‑32.1."

SECTION 16C.1.(c)  G.S. 20‑176(c1) is repealed.

SECTION 16C.1.(d)  G.S. 20‑179(f3) reads as rewritten:

"(f3)     Aggravated Level One Punishment. – A defendant subject to Aggravated Level One punishment may be fined up to ten thousand dollars ($10,000) and shall be sentenced to a term of imprisonment that includes a minimum term of not less than 12 months and a maximum term of not more than 36 months. Notwithstanding G.S. 15A‑1371, a defendant sentenced to a term of imprisonment pursuant to this subsection shall not be eligible for parole. However, the defendant shall be released from the Division of Adult Correction of the Department of Public SafetyStatewide Misdemeanant Confinement Program on the date equivalent to the defendant's maximum imposed term of imprisonment less four months and shall be supervised by the Section of PrisonsCommunity Supervision of the Division of Adult Correction under and subject to the provisions of Article 84A of Chapter 15A of the General Statutes and shall also be required to abstain from alcohol consumption for the four‑month period of supervision as verified by a continuous alcohol monitoring system. For purposes of revocation, violation of the requirement to abstain from alcohol or comply with the use of a continuous alcohol monitoring system shall be deemed a controlling condition under G.S. 15A‑1368.4.

The term of imprisonment may be suspended only if a condition of special probation is imposed to require the defendant to serve a term of imprisonment of at least 120 days. If the defendant is placed on probation, the judge shall impose as requirements that the defendant (i) abstain from alcohol consumption for a minimum of 120 days to a maximum of the term of probation, as verified by a continuous alcohol monitoring system pursuant to subsections (h1) and (h3) of this section, and (ii) obtain a substance abuse assessment and the education or treatment required by G.S. 20‑17.6 for the restoration of a drivers license and as a condition of probation. The judge may impose any other lawful condition of probation."

SECTION 16C.1.(e)  G.S. 148‑13 reads as rewritten:

"§ 148‑13.  Regulations as to custody grades, privileges, gain time credit, etc.

(a)        The Secretary of Public Safety may issue regulations regarding the grades of custody in which State prisoners are kept, the privileges and restrictions applicable to each custody grade, and the amount of cash, clothing, etc., to be awarded to State prisoners after their discharge or parole. The amount of cash awarded to a prisoner upon discharge or parole after being incarcerated for two years or longer shall be at least forty‑five dollars ($45.00).

(a1)      The Secretary of Public Safety shall adopt rules to specify the rates at, and circumstances under, which earned time authorized by G.S. 15A‑1340.13(d) and G.S. 15A‑1340.20(d) may be earned or forfeited by persons serving activated sentences of imprisonment for felony or misdemeanor convictions.

(b)        With respect to prisoners who are serving prison or jail termssentences for impaired driving offenses under G.S. 20‑138.1, the Secretary of Public Safety may, in his discretion, issue regulations regarding deductions of time from the terms of such prisoners for good behavior, meritorious conduct, work or study, participation in rehabilitation programs, and the like.

(c),       (d) Repealed by Session Laws 1993, c. 538, s. 32, effective January 1, 1995.

(e)        The Secretary's regulations concerning earned time and good time credits authorized by this section shall be distributed to and followed by local jail administrators with regard to sentenced jail prisoners.

(f)         The provisions of this section do not apply to persons sentenced to a term of special probation under G.S. 15A‑1344(e) or G.S. 15A‑1351(a)."

SECTION 16C.1.(f)  G.S. 148‑32.1 reads as rewritten:

"§ 148‑32.1.  Local confinement, costs, alternate facilities, parole, work release.

(a)        Repealed by Session Laws 2009‑451, s. 19.22A, effective July 1, 2009.

(b)        In the event that the custodian of the local confinement facility certifies in writing to the clerk of the superior court in the county in which the local confinement facility is located that the local confinement facility is filled to capacity, or that the facility cannot reasonably accommodate any more prisoners due to segregation requirements for particular prisoners, or that the custodian anticipates, in light of local experiences, an influx of temporary prisoners at that time, or if the local confinement facility does not meet the minimum standards published pursuant to G.S. 153A‑221, any judge of the district court in the district court district as defined in G.S. 7A‑133 where the facility is located, or any superior court judge who has jurisdiction pursuant to G.S. 7A‑47.1 or G.S. 7A‑48 in a district or set of districts as defined in G.S. 7A‑41.1 where the facility is located may order that a prisoner not housed pursuant to the Statewide Misdemeanant Confinement Program established in subsection (b2) of this section be transferred to any other qualified local confinement facility within that district or within another such district where space is available, including a satellite jail unit operated pursuant to G.S. 153A‑230.3 if the prisoner is a non‑violent misdemeanant, which local facility shall accept the transferred prisoner.

If no other local confinement facility is available and the reason for the requested transfer is that the local confinement facility that would be required to house the prisoner cannot reasonably accommodate any more prisoners due to segregation requirements for particular prisoners or the local facility does not meet the minimum standards published pursuant to G.S. 153A‑221, then the judge may order that a prisoner not housed pursuant to the Statewide Misdemeanant Confinement Program established in subsection (b2) of this section be transferred to a facility operated by the Division of Adult Correction of the Department of Public Safety as designated by the Division of Adult Correction. In no event, however, shall a prisoner whose term of imprisonment is less than 30 days be assigned or ordered transferred to a facility operated by the Division of Adult Correction.

(b1)      It is the intent of the General Assembly to authorize the Division of Adult Correction to enter into voluntary agreements with counties to provide housing for misdemeanants serving periods of confinement of more than 90 days and up to 180 days, except for those serving a sentence for an impaired driving offense.and for all sentences imposed for impaired driving under G.S. 20‑138.1, regardless of length. It is further the intent of the General Assembly that the Division of Adult Correction, in conjunction with the North Carolina Sheriffs' Association, Inc., establish a program for housing misdemeanants serving periods of confinement of more than 90 days and up to 180 days, except for those serving sentences for an impaired driving offense.and for all sentences imposed for impaired driving under G.S. 20‑138.1, regardless of length. It is also the intent of the General Assembly that the Division of Adult Correction contract with the North Carolina Sheriffs' Association, Inc., to provide a service that identifies space in local confinement facilities that is available for housing these misdemeanants.

The General Assembly intends that the cost of housing and caring for these misdemeanants, including, but not limited to, care, supervision, transportation, medical, and any other related costs, be covered by State funds and not be imposed as a local cost. Therefore, the General Assembly intends that the funds in the Statewide Misdemeanant Confinement Fund established in G.S. 148‑10.4 be used to provide funding to cover the costs of managing a system for providing that housing of misdemeanants in local confinement facilities as well as reimbursing the counties for housing and related expenses for those misdemeanants.

(b2)      The Statewide Misdemeanant Confinement Program is established. The Program shall provide for the housing of misdemeanants from all counties serving sentences imposed for a period of more than 90 days and up to 180 days, except for those serving sentences for an impaired driving offense under G.S. 20‑138.1and for all sentences imposed for impaired driving under G.S. 20‑138.1, regardless of length. Those misdemeanants shall be confined in local confinement facilities except as provided in subsections (b3) and (b4) of this section. The Program shall address methods for the placement and transportation of inmates and reimbursement to counties for the housing of those inmates. Any county that voluntarily agrees to house misdemeanants from that county or from other counties pursuant to the Program may enter into a written agreement with the Division of Adult Correction to do so.

This Program shall only operate as long as sufficient State funds are available through the Statewide Misdemeanant Confinement Fund established in G.S. 148‑10.4(c).

…."

SECTION 16C.1.(g)  This section becomes effective October 1, 2014, and applies to (i) persons placed on probation or sentenced to imprisonment for impaired driving under G.S. 20‑138.1 on or after January 1, 2015, and (ii) persons placed on probation or sentenced to imprisonment for all other misdemeanors other than impaired driving under G.S. 20‑138.1 on or after October 1, 2014.

 

REMOVE LIMITATION ON COMMUNITY WORK CREW FEE

SECTION 16C.2.  G.S. 148‑32.2 reads as rewritten:

"§ 148‑32.2.  Community work crew fee.

The Division of Adult Correction of the Department of Public Safety may charge a fee to any unit of local government to which it provides, upon request, a community work crew. The amount of the fee shall be no more than the cost to the Division to provide the crew to the unit of local government, not to exceed a daily rate of one hundred fifty dollars ($150.00) per work crew.government."

 

INMATE LABOR CONTRACT

SECTION 16C.3.  The Division of Adult Correction of the Department of Public Safety shall prioritize inmate labor contracts in areas where prisons were closed during the 2013‑2014 fiscal year. The Division shall charge a transportation fee equivalent to the mileage cost of transporting inmates to and from the contract site. The Division shall also charge an administrative fee as part of the inmate labor contract that reflects the other costs associated with providing the inmate labor.

 

EVALUATION OF ELECTRICAL DEVICES, APPLIANCES, AND EQUIPMENT USED BY THE DIVISION OF ADULT CORRECTION

SECTION 16C.4.  G.S. 66‑25(b) reads as rewritten:

"(b)      Electrical devices, appliances, or equipment used by the Division of Adult Correction of the Department of Public Safety shall may be evaluated for safety and suitability by the Central Engineering Section of the Department of Public Safety. The evaluation shall be conducted in accordance with nationally recognized standards. Electrical devices, appliances, and equipment used by the Division that are not evaluated by the Central Engineering Section as provided by this subsection are subject to the evaluation requirement of subsection (a) of this section."

 

MAINTENANCE OF PRISONS

SECTION 16C.5.  Section 1.1 of S.L. 2011‑412, as amended by Section 1.2 of S.L. 2011‑412, reads as rewritten:

"SECTION 1.1. The Department of Public Safety shall study the potential benefits and costs of contracting for maintenance services at prison facilities and report its findings to the 2013 Session of the General Assembly. The Department shall not expand private maintenance contracts to additional prison facilities unless authorized by the 2013 Session of the General Assembly.The Department may expand private maintenance contracts to additional prison facilities if it determines that savings can be realized by doing so and that safety can be maintained at those facilities. The Department shall report to the Joint Legislative Commission on Governmental Operations on the anticipated savings and on safety considerations prior to entering any prison maintenance contract under this section."

 

ADULT AND JUVENILE INMATE MEDICAL COSTS

SECTION 16C.6.(a)  Section 16C.4(a) of S.L. 2013‑360 reads as rewritten:

"SECTION 16C.4.(a)  The Department of Public Safety shall reimburse those providers and facilities providing approved inmate medical services outside the correctional or juvenile facility the lesser amount of either a rate of seventy percent (70%) of the provider's then‑current prevailing charge or two times the then‑current Medicaid rate for any given service. The Department shall have the right to audit any given provider to determine the actual prevailing charge to ensure compliance with this provision.

This section does apply to vendors providing services that are not billed on a fee‑for‑service basis, such as temporary staffing. Nothing in this section shall preclude the Department from contracting with a provider for services at rates that provide greater documentable cost avoidance for the State than do the rates contained in this section or at rates that are less favorable to the State but that will ensure the continued access to care."

SECTION 16C.6.(b)  Section 19.6(c) of S.L. 2010‑31 reads as rewritten:

"SECTION 19.6.(c)  The Department of CorrectionDepartment of Public Safety shall consult with the Division of Medical Assistance in the Department of Health and Human Services to develop protocols for prisoners and juveniles committed to the Department who would be eligible for Medicaid if they were not incarcerated to access Medicaid while in custody or under extended limits of confinement. custody, under extended limits of confinement, or committed to the Department. The Department shall seek reimbursement from Medicaid for those health care costs incurred by the Department in those instances when an inmate's the Medicaid eligibility of an inmate or of a juvenile held in secure custody or committed to the Department has been temporarily reinstated due to a hospitalization. The Department of Correction shall also work with the Division of Medical Assistance to determine the feasibility of applying for a Medicaid waiver to cover the inmate population."

 

REPORT ON TREATMENT FOR EFFECTIVE COMMUNITY SUPERVISION PROGRAM

SECTION 16C.7.(a)  Section 16C.12 of S.L. 2013‑360 is repealed.

SECTION 16C.7.(b)  G.S. 143B‑1155(c) reads as rewritten:

"(c)       The Division of Adult Correction shall report by March 1 of each year to the Chairs of the Senate and House of Representatives Appropriations Committees, the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety,Safety and the Joint Legislative Oversight Committee on Justice and Public Safety on the status of the Treatment for Effective Community Supervision Program. The report shall include the following information:

(1)        The dollar amount and purpose of funds provided on a contractual basis to service providers for the previous fiscal year.year and the amount of any funds carried over from the previous fiscal year.

(2)        An analysis of offender participation data received, including the following:

a.         The number of people on probation and post‑release supervision that are in the priority population that received services.

b.         The number of people on probation and post‑release supervision that are in the priority population that did not receive services.

c.         The number of people on probation and post‑release supervision outside of the priority population that received services.

d.         The type of services provided to these populations.populations, including data on each program's utilization, capacity, and completion rates.

e.         The rate of revocations and successful completions forand the educational progress and employment status of people who received services.

f.          Other measures as determined appropriate.

(3)        The dollar amount needed to provide additional services to meet the needs of the priority population in the upcoming budget year.

(4)        Details of personnel, travel, contractual, operating, and equipment expenditures for each program type."

 

CLARIFY THE IMPOSITION OF CONFINEMENT IN RESPONSE TO VIOLATIONS

SECTION 16C.8.(a)  G.S. 15A‑1344(d2) reads as rewritten:

"(d2)    Confinement in Response to Violation. – When a defendant under supervision for a felony conviction has violated a condition of probation other than G.S. 15A‑1343(b)(1) or G.S. 15A‑1343(b)(3a), the court may impose a period of confinement of 90 consecutive days. days to be served in the custody of the Division of Adult Correction of the Department of Public Safety. The court may not revoke probation unless the defendant has previously received a total of two periods of confinement under this subsection. A defendant may receive only two periods of confinement under this subsection. If The 90‑day term of confinement ordered under this subsection for a felony shall not be reduced by credit for time already served in the case. Any such credit shall instead be applied to the suspended sentence. However, if the time remaining on the maximum imposed sentence on a defendant under supervision for a felony conviction is 90 days or less, then the term of confinement is for the remaining period of the sentence. Confinement under this section shall be credited pursuant to G.S. 15‑196.1.

When a defendant under supervision for a misdemeanor conviction has violated a condition of probation other than G.S. 15A‑1343(b)(1) or G.S. 15A‑1343(b)(3a), the court may impose a period of confinement of up to 90 consecutive days. days to be served where the defendant would have served an active sentence. The court may not revoke probation unless the defendant has previously received a total of two periods of confinement under this subsection. A defendant may receive only two periods of confinement under this subsection. Confinement under this section shall be credited pursuant to G.S. 15‑196.1.

If a defendant is arrested for violation of a condition of probation and is lawfully confined to await a hearing for the violation, then the judge shall first credit any confinement time spent awaiting the hearing to any confinement imposed under this subsection; any excess time shall be credited to the activated sentence. The period of confinement imposed under this subsection on a defendant who is on probation for multiple offenses shall run concurrently on all cases related to the violation. Confinement shall be immediate unless otherwise specified by the court.

A defendant shall serve any confinement imposed under this subsection in the correctional facility where the defendant would have served an active sentence."

SECTION 16C.8.(b)  This section becomes effective October 1, 2014, and applies to probation violations occurring on or after that date.

 

DETER INMATE ACCESS TO CELL PHONES

SECTION 16C.9.  In an effort to deter illegal access of cell phones by inmates in the State's prison system, the Department of Public Safety is encouraged to identify non‑General Fund sources of funds, including federal and foundation grants and other receipts, to fund enhanced prison security technology.

 

USE OF CLOSED FACILITIES

SECTION 16C.10.  Section 16A.3 of S.L. 2013‑360 reads as rewritten:

"SECTION 16A.3.  In conjunction with the closing of prison facilities, youth detention centers, and youth development centers, the Department of Public Safety shall consult with the county or municipality in which the facility is located, with the elected State and local officials, and with State and federal agencies about the possibility of converting that facility to other use. The Department may also consult with any private for‑profit or nonprofit firm about the possibility of converting the facility to other use. In developing a proposal for future use of each facility, the Department shall give priority to converting the facility to other criminal justice use. Consistent with existing law and the future needs of the Department of Public Safety, the State may provide for the transfer or the lease of any of these facilities to counties, municipalities, State agencies, federal agencies, or private firms wishing to convert them to other use. The Department of Public Safety may also consider converting some of the facilities recommended for closing from one security custody level to another, where that conversion would be cost‑effective. A prison unit under lease to a county pursuant to the provisions of this section for use as a jail is exempt for the period of the lease from any of the minimum standards adopted by the Secretary of Health and Human Services pursuant to G.S. 153A‑221 for the housing of adult prisoners that would subject the unit to greater standards than those required of a unit of the State prison system.

In addition, the Department of Public Safety may use available funds to reopen and convert closed facilities for use as treatment and behavior modification facilities for offenders serving a period of confinement in response to violation pursuant to G.S. 15A‑1344(d2)."

 

JUSTICE REINVESTMENT ACT/LIMITED AUTHORITY TO RECLASSIFY VACANT POSITIONS

SECTION 16C.11.  Section 16C.13 of S.L. 2013‑360 reads as rewritten:

"SECTION 16C.13.(a)  Notwithstanding any other provision of law, subject to the approval of the Director of the Budget, the Secretary of Public Safety may reclassify vacant positions within the Department to create up to 30 new field services specialist or chief probation/parole officer positions in order to meet the increasing caseloads resulting from the implementation of the Justice Reinvestment Act of 2011, S.L. 2011‑192, as amended.

"SECTION 16C.13.(b)  The Department of Public Safety shall report to the Chairs of the Senate Appropriations Committee on Justice and Public Safety and the House Appropriations Subcommittee on Justice and Public Safety by March 1, 2014, March 1, 2015, on the following:

(1)        The position number, position type, salary, and position location of each new position created under the authority of this section.

(2)        The position number, position type, fund code, and position location of each vacant position used to create new positions under the authority of this section."

 

TECHNICAL CORRECTION/STATE COMMUNITY CORRECTIONS ADVISORY BOARD APPOINTMENT

SECTION 16C.12.  G.S. 143B‑1157(b)(1) reads as rewritten:

"(b)      The membership of the State Board shall be selected as follows:

(1)        The Governor shall appoint the following members: the county sheriff, the chief of a city police department, the member of the public who has been the victim of a crime, a rehabilitated ex‑offender, the two rehabilitated ex‑offenders, and the members selected from each of the service areas."

 

Study 340B Drug Pricing Opportunities

SECTION 16C.13.  The Department of Public Safety, Division of Adult Correction, shall study opportunities for the State to obtain savings under the federal 340B Drug Pricing Program on drugs provided to prisoners in State correctional facilities. The Division shall conduct this study in conjunction with the University of North Carolina Health Care System. The Department shall report the results of this study by December 1, 2014, to the chairs of (i) the Joint Legislative Oversight Committee on Justice and Public Safety, (ii) the House Appropriations Subcommittee on Justice and Public Safety, and (iii) the Senate Appropriations Committee on Justice and Public Safety.

 

SUBPART XVI‑D. RESERVED

 

PART XVII. DEPARTMENT OF JUSTICE

 

TRANSFER THE SBI AND THE ALCOHOL LAW ENFORCEMENT SECTION

SECTION 17.1.(a)  The State Bureau of Investigation is hereby transferred to the Department of Public Safety as a new section within the Law Enforcement Division. This transfer shall have all of the elements of a Type I transfer, as described in G.S. 143A‑6.

 

SBI TRANSFER – CREATION OF STATUTORY SUBPARTS

SECTION 17.1.(b)  Part 4 of Article 13 of Chapter 143B of the General Statutes is amended by adding a new Subpart to read:

"Subpart A. General Provisions."

SECTION 17.1.(c)  Part 4 of Article 13 of Chapter 143B of the General Statutes is amended by adding a new Subpart to read:

"Subpart B. State Capitol Police."

SECTION 17.1.(d)  Part 4 of Article 13 of Chapter 143B of the General Statutes is amended by adding a new Subpart to read:

"Subpart C. State Bureau of Investigation."

 

SBI TRANSFER – REPEAL OF CERTAIN STATUTES AND RECODIFICATION OF OTHER AFFECTED STATUTES

SECTION 17.1.(e)  G.S. 114‑13 is repealed.

SECTION 17.1.(f)  G.S. 114‑2.7 is recodified as G.S. 143B‑901 under Subpart A of Part 4 of Article 13 of Chapter 143B of the General Statutes, as created by subsection (b) of this section.

SECTION 17.1.(g)  G.S. 114‑10 through G.S. 114‑10.1 are recodified as G.S. 143B‑902 through G.S. 143B‑905 under Subpart A of Part 4 of Article 13 of Chapter 143B of the General Statutes, as created by subsection (b) of this section.

SECTION 17.1.(h)  G.S. 143B‑900 is recodified as G.S. 143B‑911 under Subpart B of Part 4 of Article 13 of Chapter 143B of the General Statutes, as created by subsection (c) of this section.

SECTION 17.1.(i)  G.S. 114‑12 is recodified as G.S. 143B‑915 under Subpart C of Part 4 of Article 13 of Chapter 143B of the General Statutes, as created by subsection (d) of this section. The following statutes are recodified as G.S. 143B‑917 through G.S. 143B‑924 under Subpart C of Part 4 of Article 13 of Chapter 143B of the General Statutes, as created by subsection (d) of this section: G.S. 114‑14 through G.S. 114‑15.3 and G.S. 114‑17 through G.S. 114‑18.

SECTION 17.1.(j)  G.S. 114‑19 is recodified as G.S. 143B‑906 under Subpart A of Part 4 of Article 13 of Chapter 143B of the General Statutes, as created by subsection (b) of this section.

SECTION 17.1.(k)  G.S. 114‑19.01 is recodified as G.S. 143B‑925 under Subpart C of Part 4 of Article 13 of Chapter 143B of the General Statutes, as created by subsection (d) of this section.

SECTION 17.1.(l)  All of Part 2 of Article 4 of Chapter 114 of the General Statutes, other than the section recodified by subsection (k) of this section, is recodified as Subpart D of Part 4 of Article 13 of Chapter 143B of the General Statutes, "Criminal History Record Checks", G.S. 143B‑930 through G.S. 143B‑981. Statutory sections of the former statutes that were reserved for future codification shall have corresponding sections that are reserved for future codification in the recodified statutes.

SECTION 17.1.(m)  Part 3 of Article 4 of Chapter 114 of the General Statutes is recodified as Subpart E of Part 4 of Article 13 of Chapter 143B of the General Statutes, "Protection of Public Officials", G.S. 143B‑986 through G.S. 143B‑987.

 

SBI TRANSFER – OTHER CHANGES

SECTION 17.1.(n)  The following statutes, as recodified by subsections (f) through (m) of this section, as applicable, are amended by deleting the language "Department of Justice" wherever it appears and substituting "Department of Public Safety": G.S. 14‑208.15A, 14‑415.19, 15A‑145, 15A‑145.1, 15A‑145.2, 15A‑145.3, 15A‑145.4(c) and (j), 15A‑145.5(c), 15A‑145.6(c), 15A‑146, 18B‑902, 19A‑24, 48‑3‑309, 53‑244.050, 58‑71‑51, 58‑89A‑60, 66‑407, 70‑13.1, 74C‑8.1, 74D‑2.1, 74F‑18, 84‑24, 85B‑3.2, 90‑11, 90‑30, 90‑85.15, 90‑102.1, 90‑113.5, 90‑113.46A, 90‑143.3, 90‑171.48, 90‑210.25, 90‑224, 90‑270.22, 90‑270.26, 90‑270.29A, 90‑288.01, 90‑622, 90‑629, 90‑629.1, 90‑652, 90D‑7, 93A‑4, 95‑47.2, 106‑65.26, 110‑90.2, 115C‑238.73, 115C‑332, 121‑25.1, 143‑166.13, 143‑143.10A, 143B‑930 through 143B‑965, and 160A‑304.

SECTION 17.1.(o)  The following statutes, as recodified by subsections (f) through (m) of this section, as applicable, are amended by deleting the language "Attorney General" wherever it appears and substituting "Secretary of Public Safety": G.S. 15A‑1475, 58‑79‑1 through 58‑79‑15, 58‑79‑25, 143B‑921, and 163‑278.

SECTION 17.1.(p)  The following statutes, as recodified by subsections (f) through (m) of this section, as applicable, are amended by deleting the language "Division of Criminal Information" and "State Bureau of Investigation's Division of Criminal Information" wherever they appear and substituting "Department of Public Safety": G.S. 7B‑2507, 15A‑1340.14, 15A‑1340.21, 20‑26, 85B‑3.2, 122C‑80, 143B‑935, 143B‑943, 143B‑954, and 143B‑981.

SECTION 17.1.(q)  The following statutes are amended by deleting the language "Division" wherever it appears and substituting "Department of Public Safety": G.S. 14‑208.7, 14‑208.8, 14‑208.8A, 14‑208.9, 14‑208.9A, 14‑208.12A, 14‑208.15, 14‑208.15A, 14‑208.22, and 14‑208.27. However, no substitution shall be made under this subsection to instances of the word "Division" that appear in the phrase "Division of Adult Correction."

SECTION 17.1.(r)  G.S. 7A‑349 reads as rewritten:

"§ 7A‑349.  Criminal history record check; denial of employment, contract, or volunteer opportunity.

The Judicial Department may deny employment, a contract, or a volunteer opportunity to any person who refuses to consent to a criminal history check authorized under G.S. 114‑19.19G.S. 143B‑950 and may dismiss a current employee, terminate a contractor, or terminate a volunteer relationship if that employee, contractor, or volunteer refuses to consent to a criminal history record check authorized under G.S. 114‑19.19.G.S. 143B‑950."

SECTION 17.1.(s)  G.S. 7B‑1904 reads as rewritten:

"§ 7B‑1904.  Order for secure or nonsecure custody.

The custody order shall be in writing and shall direct a law enforcement officer or other authorized person to assume custody of the juvenile and to make due return on the order. The official executing the order shall give a copy of the order to the juvenile's parent, guardian, or custodian. If the order is for nonsecure custody, the official executing the order shall also give a copy of the petition and order to the person or agency with whom the juvenile is being placed. If the order is for secure custody, copies of the petition and custody order shall accompany the juvenile to the detention facility or holdover facility of the jail. A message of the Division of Criminal Information, State Bureau of Investigation,the Department of Public Safety stating that a juvenile petition and secure custody order relating to a specified juvenile are on file in a particular county shall be authority to detain the juvenile in secure custody until a copy of the juvenile petition and secure custody order can be forwarded to the juvenile detention facility. The copies of the juvenile petition and secure custody order shall be transmitted to the detention facility no later than 72 hours after the initial detention of the juvenile.

An officer receiving an order for custody which is complete and regular on its face may execute it in accordance with its terms and need not inquire into its regularity or continued validity, nor does the officer incur criminal or civil liability for its execution."

SECTION 17.1.(t)  G.S. 8‑58.20(c) reads as rewritten:

"(c)       The analyst who analyzes the forensic sample and signs the report shall complete an affidavit on a form developed by the State Bureau of Investigation.State Crime Laboratory. In the affidavit, the analyst shall state (i) that the person is qualified by education, training, and experience to perform the analysis, (ii) the name and location of the laboratory where the analysis was performed, and (iii) that performing the analysis is part of that person's regular duties. The analyst shall also aver in the affidavit that the tests were performed pursuant to the accrediting body's standards for that discipline and that the evidence was handled in accordance with established and accepted procedures while in the custody of the laboratory. The affidavit shall be sufficient to constitute prima facie evidence regarding the person's qualifications. The analyst shall attach the affidavit to the laboratory report and shall provide the affidavit to the investigating officer and the district attorney in the prosecutorial district in which the criminal charges are pending. An affidavit by a forensic analyst sworn to and properly executed before an official authorized to administer oaths is admissible in evidence without further authentication in any criminal proceeding with respect to the forensic analysis administered and the procedures followed."

SECTION 17.1.(u)  G.S. 14‑16.9 reads as rewritten:

"§ 14‑16.9.  Officers‑elect to be covered.

Any person who has been elected to any office covered by this Article but has not yet taken the oath of office shall be considered to hold the office for the purpose of this Article and G.S. 114‑15.G.S. 143B‑919."

SECTION 17.1.(v)  G.S. 14‑132(c)(3) reads as rewritten:

"(3)      Designated by the Attorney GeneralSecretary of Public Safety in accordance with G.S. 114‑20.1.G.S. 143B‑987."

SECTION 17.1.(w)  G.S. 14‑208.6 reads as rewritten:

"§ 14‑208.6.  Definitions.

The following definitions apply in this Article:

(1c)      "Division""Department" means the Division of Criminal Information of the Department of Justice.Department of Public Safety.

(8)        "Statewide registry" means the central registry compiled by the Division Department in accordance with G.S. 14‑208.14.

…."

SECTION 17.1.(x)  G.S. 14‑208.13 reads as rewritten:

"§ 14‑208.13.  File with Police Criminal Information Network.

(a)        The Division Department of Public Safety shall include the registration information in the Police Criminal Information Network as set forth in G.S. 114‑10.1.G.S. 143B‑905.

(b)        The Division Department of Public Safety shall maintain the registration information permanently even after the registrant's reporting requirement expires."

SECTION 17.1.(y)  G.S. 14‑208.14 reads as rewritten:

"§ 14‑208.14.  Statewide registry; Division of Criminal StatisticsDepartment of Public Safety designated custodian of statewide registry.

(a)        The Division of Criminal Statistics Department of Public Safety shall compile and keep current a central statewide sex offender registry. The DivisionDepartment is the State agency designated as the custodian of the statewide registry. As custodian the Division Department has the following responsibilities:

(1)        To receive from the sheriff or any other law enforcement agency or penal institution all sex offender registrations, changes of address, changes of academic or educational employment status, and prerelease notifications required under this Article or under federal law. The DivisionDepartment shall also receive notices of any violation of this Article, including a failure to register or a failure to report a change of address.

(2)        To provide all need‑to‑know law enforcement agencies (local, State, campus, federal, and those located in other states) immediately upon receipt by the DivisionDepartment of any of the following: registration information, a prerelease notification, a change of address, a change of academic or educational employment status, or notice of a violation of this Article.

(2a)      To notify the appropriate law enforcement unit at an institution of higher education as soon as possible upon receipt by the DivisionDepartment of relevant information based on registration information or notice of a change of academic or educational employment status. If an institution of higher education does not have a law enforcement unit, then the DivisionDepartment shall provide the information to the local law enforcement agency that has jurisdiction for the campus.

(3)        To coordinate efforts among law enforcement agencies and penal institutions to ensure that the registration information, changes of address, change of name, prerelease notifications, and notices of failure to register or to report a change of address are conveyed in an appropriate and timely manner.

(4)        To provide public access to the statewide registry in accordance with this Article.

(4a)      To maintain the system for public access so that a registrant's full name, any aliases, and any legal name changes are cross‑referenced and a member of the public may conduct a search of the system for a registrant under any of those names.

(5)        To maintain a system allowing an entity to access a list of online identifiers of persons in the central sex offender registry.

(b)        The statewide registry shall include the following:

(1)        Registration information obtained by a sheriff or penal institution under this Article or from any other local or State law enforcement agency.

(2)        Registration information received from a state or local law enforcement agency or penal institution in another state.

(3)        Registration information received from a federal law enforcement agency or penal institution."

SECTION 17.1.(z)  G.S. 14‑208.31 reads as rewritten:

"§ 14‑208.31.  File with Police Criminal Information Network.

(a)        The Division Department of Public Safety shall include the registration information in the Police Criminal Information Network as set forth in G.S. 114‑10.1.G.S. 143B‑905.

(b)        The Division Department of Public Safety shall maintain the registration information permanently even after the registrant's reporting requirement expires; however, the records shall remain confidential in accordance with Article 32 of Chapter 7B of the General Statutes."

SECTION 17.1.(aa)  G.S. 14‑415.4(d)(5) reads as rewritten:

"(5)      The petitioner submits his or her fingerprints to the sheriff of the county in which the petitioner resides for a criminal background check pursuant to G.S. 114‑19.28.G.S. 143B‑959."

SECTION 17.1.(bb)  G.S. 15A‑266.2(4) reads as rewritten:

"(4)      'DNA Sample' means blood, cheek swabs, or any biological sample containing cells provided by any person with respect to offenses covered by this Article or submitted to the State Bureau of InvestigationState Crime Laboratory pursuant to this Article for analysis pursuant to a criminal investigation or storage or both."

SECTION 17.1.(cc)  G.S. 15A‑1341(d) reads as rewritten:

"(d)      Search of Sex Offender Registration Information Required When Placing a Defendant on Probation. – When the court places a defendant on probation, the probation officer assigned to the defendant shall conduct a search of the defendant's name or other identifying information against the registration information regarding sex offenders compiled by the Division of Criminal Statistics of the Department of JusticeDepartment of Public Safety in accordance with Article 27A of Chapter 14 of the General Statutes. The probation officer may conduct the search using the Internet site maintained by the Division of Criminal Statistics.Department of Public Safety."

SECTION 17.1.(dd)  G.S. 15A‑298 reads as rewritten:

"§ 15A‑298.  Subpoena authority.

Pursuant to rules issued by the Attorney General,Department of Public Safety, the Director of the State Bureau of Investigation or the Director's designee may issue an administrative subpoena to a communications common carrier or an electronic communications service to compel production of business records if the records:

(1)        Disclose information concerning local or long‑distance toll records or subscriber information; and

(2)        Are material to an active criminal investigation being conducted by the State Bureau of Investigation."

SECTION 17.1.(ee)  G.S. 18C‑151(a)(3) reads as rewritten:

"(3)      All proposals shall be accompanied by a bond or letter of credit in an amount equal to not less than five percent (5%) of the proposal and the fee to cover the cost of the criminal record check conducted under G.S. 114‑19.6.G.S. 143B‑935."

SECTION 17.1.(ff)  G.S. 74F‑6(16) reads as rewritten:

"(16)    Request that the Department of JusticeDepartment of Public Safety conduct criminal history record checks of applicants for licensure and apprenticeships pursuant to G.S. 114‑19.15.G.S. 143B‑946."

SECTION 17.1.(gg)  G.S. 90‑113.33(10) reads as rewritten:

"(10)    Request that the Department of JusticeDepartment of Public Safety conduct criminal history record checks of applicants for registration, certification, or licensure pursuant to G.S. 114‑19.11A.G.S. 143B‑941."

SECTION 17.1.(hh)  G.S. 90‑171.23(b)(19) reads as rewritten:

"(19)    Request that the Department of JusticeDepartment of Public Safety conduct criminal history record checks of applicants for licensure pursuant to G.S. 114‑19.11.G.S. 143B‑940."

SECTION 17.1.(ii)  G.S. 90‑270.63(b) reads as rewritten:

"(b)      The Board may request that an applicant for licensure, an applicant seeking reinstatement of a license, or a licensee under investigation by the Board for alleged criminal offenses in violation of this Article consent to a criminal history record check. Refusal to consent to a criminal history record check may constitute grounds for the Board to deny licensure to an applicant, deny reinstatement of a license to an applicant, or revoke the license of a licensee. The Board shall ensure that the State and national criminal history of an applicant is checked. The Board shall be responsible for providing to the North Carolina Department of JusticeDepartment of Public Safety the fingerprints of the applicant or licensee to be checked, a form signed by the applicant or licensee consenting to the criminal history record check and the use of fingerprints and other identifying information required by the State or National Repositories of Criminal Histories, and any additional information required by the Department of JusticeDepartment of Public Safety in accordance with G.S. 114‑19.27.G.S. 143B‑958. The Board shall keep all information obtained pursuant to this section confidential. The Board shall collect any fees required by the Department of Justice Department of Public Safety and shall remit the fees to the Department of JusticeDepartment of Public Safety for expenses associated with conducting the criminal history record check."

SECTION 17.1.(jj)  G.S. 90‑345(b) reads as rewritten:

"(b)      The Board may request that an applicant for licensure, an applicant seeking reinstatement of a license, or a licensee under investigation by the Board for alleged criminal offenses in violation of this Article consent to a criminal history record check. Refusal to consent to a criminal history record check may constitute grounds for the Board to deny licensure to an applicant, deny reinstatement of a license to an applicant, or revoke the license of a licensee. The Board shall ensure that the State and national criminal history of an applicant is checked. The Board shall be responsible for providing to the North Carolina Department of JusticeDepartment of Public Safety the fingerprints of the applicant or licensee to be checked, a form signed by the applicant or licensee consenting to the criminal record check and the use of fingerprints and other identifying information required by the State or National Repositories of Criminal Histories, and any additional information required by the Department of JusticeDepartment of Public Safety in accordance with G.S. 114‑19.26.G.S. 143B‑957. The Board shall keep all information obtained pursuant to this section confidential. The Board shall collect any fees required by the Department of JusticeDepartment of Public Safety and shall remit the fees to the Department of JusticeDepartment of Public Safety for expenses associated with conducting the criminal history record check."

SECTION 17.1.(kk)  G.S. 93E‑1‑6(c1) reads as rewritten:

"(c1)     The Board shall also make an investigation as it deems necessary into the background of the applicant to determine the applicant's qualifications with due regard to the paramount interest of the public as to the applicant's competency, honesty, truthfulness, and integrity. All applicants shall consent to a criminal history record check. Refusal to consent to a criminal history record check may constitute grounds for the Board to deny an application. The Board shall ensure that the State and national criminal history of an applicant is checked. The Board shall be responsible for providing to the North Carolina Department of JusticeDepartment of Public Safety the fingerprints of the applicant to be checked, a form signed by the applicant consenting to the criminal history record check, and the use of fingerprints and other identifying information required by the State or National Repositories of Criminal Histories and any additional information required by the Department of Justice Department of Public Safety in accordance with G.S. 114‑19.30.G.S. 143B‑961. The Board shall keep all information obtained pursuant to this section confidential. The Board shall collect any fees required by the Department of JusticeDepartment of Public Safety and shall remit the fees to the Department of JusticeDepartment of Public Safety for expenses associated with conducting the criminal history record check."

SECTION 17.1.(ll)  G.S. 93E‑2‑11(b) reads as rewritten:

"(b)      The Board may require that an applicant for registration as an appraisal management company or a registrant consent to a criminal history record check. Refusal to consent to a criminal history record check may constitute grounds for the Board to deny registration to an applicant or registrant. The Board shall ensure that the State and national criminal history of an applicant or registrant is checked. The Board shall be responsible for providing to the North Carolina Department of JusticeDepartment of Public Safety the fingerprints of the applicant or registrant to be checked, a form signed by the applicant or registrant consenting to the criminal record check and the use of fingerprints and other identifying information required by the State or National Repositories of Criminal Histories, and any additional information required by the Department of JusticeDepartment of Public Safety in accordance with G.S. 114‑19.30.G.S. 143B‑961. The Board shall keep all information obtained pursuant to this section confidential. The Board shall collect any fees required by the Department of JusticeDepartment of Public Safety and shall remit the fees to the Department of JusticeDepartment of Public Safety for expenses associated with conducting the criminal history record check."

SECTION 17.1.(mm)  G.S. 101‑5 reads as rewritten:

"§ 101‑5.  Name change application requirements; grounds for clerk to order or deny name change; certificate and record.

(e)        The clerk shall forward the order granting the name change to:

(2)        The Division of Criminal Information at the State Bureau of Investigation,Department of Public Safety, which shall update its records to show the name change.

(g)        Upon information obtained by the clerk of fraud or material misrepresentation in the application for a name change, the clerk on his or her own motion may set aside the order granting the name change after notice to the applicant and opportunity to be heard. If the clerk sets aside the name change order, the clerk shall notify the State Registrar of Vital Statistics and the Division of Criminal Information.Department of Public Safety."

SECTION 17.1.(nn)  G.S. 110‑90.2(g), as rewritten by subsection (n) of this section, reads as rewritten:

"(g)       The child care provider shall pay the cost of the fingerprinting and the federal criminal history record check in accordance with G.S. 114‑19.5.G.S. 143B‑934. The Department of Public Safety shall perform the State criminal history record check. The Department of Health and Human Services shall pay for and conduct the county criminal history record check. Child care providers who reside outside the State bear the cost of the county criminal history record check and shall provide the county criminal history record check to the Division of Child Development as required by this section."

SECTION 17.1.(oo)  G.S. 113‑172(a) reads as rewritten:

"(a)       The Secretary shall designate license agents for the Department. The Division and license agents designated by the Secretary under this section shall issue licenses authorized under this Article in accordance with this Article and the rules of the Commission. The Secretary may require license agents to enter into a contract that provides for their duties and compensation, post a bond, and submit to reasonable inspections and audits. If a license agent violates any provision of this Article, the rules of the Commission, or the terms of the contract, the Secretary may initiate proceedings for the forfeiture of the license agent's bond and may summarily suspend, revoke, or refuse to renew a designation as a license agent and may impound or require the return of all licenses, moneys, record books, reports, license forms and other documents, ledgers, and materials pertinent or apparently pertinent to the license agency. The Secretary shall report evidence or misuse of State property, including license fees, by a license agent to the State Bureau of Investigation as provided by G.S. 114‑15.1.G.S. 143B‑920."

SECTION 17.1.(pp)  G.S. 114‑2.7, as recodified as G.S. 143B‑901 by subsection (f) of this section, reads as rewritten:

"§ 143B‑901.  Reporting system and database on certain domestic‑violence‑related homicides; reports by law enforcement agencies required; annual report to the General Assembly.

The Attorney General's Office,Department of Public Safety, in consultation with the North Carolina Council for Women/Domestic Violence Commission, the North Carolina Sheriffs' Association, and the North Carolina Association of Chiefs of Police, shall develop a reporting system and database that reflects the number of homicides in the State where the offender and the victim had a personal relationship, as defined by G.S. 50B‑1(b). The information in the database shall also include the type of personal relationship that existed between the offender and the victim, whether the victim had obtained an order pursuant to G.S. 50B‑3, and whether there was a pending charge for which the offender was on pretrial release pursuant to G.S. 15A‑534.1. All State and local law enforcement agencies shall report information to the Attorney General's OfficeDepartment of Public Safety upon making a determination that a homicide meets the reporting system's criteria. The report shall be made in the format adopted by the Attorney General's Office.Department of Public Safety. The Attorney General's Office Department of Public Safety shall report to the Joint Legislative Committee on Domestic Violence,Joint Legislative Oversight Committee on Justice and Public Safety, no later than February 1 of each year, with the data collected for the previous calendar year."

SECTION 17.1.(qq)  G.S. 114‑10, as recodified as G.S. 143B‑902 by subsection (g) of this section, reads as rewritten:

"§ 143B‑902.  Division of Criminal Information.Powers and duties of the Department of Public Safety with respect to criminal information.

The Attorney General shall set up in the Department of Justice a division to be designated as the Division of Criminal Information. There shall be assigned to this Division by the Attorney General duties as follows:In addition to its other duties, it shall be the duty of the Department of Public Safety to do all of the following:

(2)        To collect, correlate, and maintain access to information that will assist in the performance of duties required in the administration of criminal justice throughout the State. This information may include, but is not limited to, motor vehicle registration, drivers' licenses, wanted and missing persons, stolen property, warrants, stolen vehicles, firearms registration, sexual offender registration as provided under Article 27A of Chapter 14 of the General Statutes, drugs, drug users and parole and probation histories. In performing this function, the DivisionDepartment may arrange to use information available in other agencies and units of State, local and federal government, but shall provide security measures to insure that such information shall be made available only to those whose duties, relating to the administration of justice, require such information.

(5)        To perform such other duties as may be from time to time prescribed by the Attorney General.

(6)        To promulgate rules and regulations for the administration of this Article."

SECTION 17.1.(rr)  G.S. 114‑10.01, as recodified as G.S. 143B‑903 by subsection (g) of this section, reads as rewritten:

"§ 143B‑903.  Collection of traffic law enforcement statistics.

(a)        In addition to the duties set forth in G.S. 114‑10, the Division of Criminal Information In addition to its other duties, the Department of Public Safety shall collect, correlate, and maintain the following information regarding traffic law enforcement by law enforcement officers:

(b)        For purposes of this section, "law enforcement officer" means any of the following:

(1)        All State law enforcement officers.

(2)        Law enforcement officers employed by county sheriffs or county police departments.

(3)        Law enforcement officers employed by police departments in municipalities with a population of 10,000 or more persons.

(4)        Law enforcement officers employed by police departments in municipalities employing five or more full‑time sworn officers for every 1,000 in population, as calculated by the DivisionDepartment for the calendar year in which the stop was made.

(d)        Each law enforcement officer making a stop covered by subdivision (1) of subsection (a) of this section shall be assigned an anonymous identification number by the officer's employing agency. The anonymous identifying number shall be public record and shall be reported to the DivisionDepartment to be correlated along with the data collected under subsection (a) of this section. The correlation between the identification numbers and the names of the officers shall not be a public record, and shall not be disclosed by the agency except when required by order of a court of competent jurisdiction to resolve a claim or defense properly before the court.

(d1)      Any agency subject to the requirements of this section shall submit information collected under subsection (a) of this section to the DivisionDepartment within 60 days of the close of each month. Any agency that does not submit the information as required by this subsection shall be ineligible to receive any law enforcement grants available by or through the State until the information which is reasonably available is submitted.

(e)        The DivisionDepartment shall publish and distribute by December 1 of each year a list indicating the law enforcement officers that will be subject to the provisions of this section during the calendar year commencing on the following January 1."

SECTION 17.1.(ss)  G.S. 114‑10.02, as recodified as G.S. 143B‑904 by subsection (g) of this section, reads as rewritten:

"§ 143B‑904.  Collection of statistics on the use of deadly force by law enforcement officers.

(a)        In addition to the duties set forth in G.S. 114‑10, the Division of Criminal Informationits other duties, the Department of Public Safety shall collect, maintain, and annually publish the number of deaths, by law enforcement agency, resulting from the use of deadly force by law enforcement officers in the course and scope of their official duties.

(b)        For purposes of this section, "law enforcement officer" means sworn law enforcement officers with the power of arrest, both State and local."

SECTION 17.1.(tt)  G.S. 114‑10.1, as recodified as G.S. 143B‑905 by subsection (g) of this section, reads as rewritten:

"§ 143B‑905.  Police Criminal Information Network.

(a)        The Division of Criminal InformationDepartment of Public Safety is authorized to establish, devise, maintain and operate a system for receiving and disseminating to participating agencies information collected, maintained and correlated under authority of G.S. 114‑10 of this Article.G.S. 143B‑902. The system shall be known as the Division of Criminal Information Network.

(b)        The Division of Criminal Information Department of Public Safety is authorized to cooperate with the Division of Motor Vehicles, Department of Administration, the Department of Public Safety, and other State, local and federal agencies and organizations in carrying out the purpose and intent of this section, and to utilize, in cooperation with other State agencies and to the extent as may be practical, computers and related equipment as may be operated by other State agencies.

(c)        The Division of Criminal Information,Department of Public Safety, after consultation with participating agencies, shall adopt rules and regulations governing the organization and administration of the Division of Criminal Information Network, including rules and regulations governing the types of information relating to the administration of criminal justice to be entered into the system, and who shall have access to such information. The rules and regulations governing access to the Division of Criminal Information Network shall not prohibit an attorney who has entered a criminal proceeding in accordance with G.S. 15A‑141 from obtaining information relevant to that criminal proceeding. The rules and regulations governing access to the Division of Criminal Information Network shall not prohibit an attorney who represents a person in adjudicatory or dispositional proceedings for an infraction from obtaining the person's driving record or criminal history.

(d)        The Division of Criminal Information may impose an initial set up fee of two thousand six hundred fifty dollars ($2,650) for agencies to participate in the Division of Criminal Information Network. This one‑time fee shall be used to offset the cost of the router and data circuit needed to access the Network.

The Division of Criminal Information Department may also impose monthly fees on participating agencies. The monthly fees collected under this subsection shall be used to offset the cost of operating and maintaining the Police Criminal Information NetworkNetwork.

(1)        The Division of Criminal InformationDepartment may impose a monthly circuit fee on agencies that access the Division of Criminal Information Network through a circuit maintained and operated by the Department of Justice.Department of Public Safety. The amount of the monthly fee is three hundred dollars ($300.00) plus an additional fee amount for each device linked to the Network. The additional fee amount varies depending upon the type of device. For a desktop device after the first seven desktop devices, the additional monthly fee is twenty‑five dollars ($25.00) per device. For a mobile device, the additional monthly fee is twelve dollars ($12.00) per device.

(2)        The Division of Criminal InformationDepartment may impose a monthly device fee on agencies that access the Police Criminal Information Network through some other approved means. The amount of the monthly device fee varies depending upon the type of device. For a desktop device, the monthly fee is twenty‑five dollars ($25.00) per device. For a mobile device, the fee is twelve dollars ($12.00) per device."

SECTION 17.1.(uu)  G.S. 114‑12, as recodified as G.S. 143B‑915 by subsection (i) of this section, reads as rewritten:

"§ 143B‑915.  Bureau of Investigation created; powers and duties.

In order to secure a more effective administration of the criminal laws of the State, to prevent crime, and to procure the speedy apprehension of criminals, the Attorney GeneralSecretary of Public Safety shall set up in the Division of Law Enforcement of the Department of Justice Public Safety a division section to be designated as the State Bureau of Investigation. The Division Section shall have charge of and administer the agencies and activities herein set up for the identification of criminals, for their apprehension, and investigation and preparation of evidence to be used in criminal courts; and the said Bureau shall have charge of investigation of criminal matters herein especially mentioned, and of such other crimes and criminal procedure as the Governor may direct.

In the personnel of the Bureau shall be included a sufficient number of persons of training and skill in the investigation of crime and in the preparation of evidence as to be of service to local enforcement officers, under the direction of the Governor, in criminal matters of major importance.

The State radio system shall be made available to the Bureau Laboratory for use in its work."

SECTION 17.1.(vv)  G.S. 114‑14, as recodified as G.S. 143B‑917 by subsection (i) of this section, reads as rewritten:

"§ 143B‑917.  General powers and duties of Director and assistants.law enforcement officers of the State Bureau of Investigation.

The Director of the Bureau and his assistantsSworn law enforcement officers of the State Bureau of Investigation are given the same power of arrest as is now vested in the sheriffs of the several counties, and their jurisdiction shall be statewide. The Director of the Bureau and his assistants Sworn law enforcement officers of the Bureau shall, at the request of the Governor, give assistance to sheriffs, police officers, district attorneys, and judges when called upon by them and so directed. They shall also give assistance, when requested, to the Department of Public Safety in the investigation of cases pending before the parole office and of complaints lodged against parolees, when so directed by the Governor."

SECTION 17.1.(ww)  G.S. 114‑15, as recodified as G.S. 143B‑919 by subsection (i) of this section, reads as rewritten:

"§ 143B‑919.  Investigations of lynchings, election frauds, etc.; services subject to call of Governor; witness fees and mileage for Director and assistants.employees.

(a)        The Bureau shall, through its Director and upon request of the Governor, investigate and prepare evidence in the event of any lynching or mob violence in the State; shall investigate all cases arising from frauds in connection with elections when requested to do so by the Board of Elections, and when so directed by the Governor. Such investigation, however, shall in nowise interfere with the power of the Attorney General to make such investigation as the Attorney General is authorized to make under the laws of the State. The Bureau is authorized further, at the request of the Governor, to investigate cases of frauds arising under the Social Security Laws of the State, of violations of the gaming laws, and lottery laws, and matters of similar kind when called upon by the Governor so to do. In all such cases it shall be the duty of the Department to keep such records as may be necessary and to prepare evidence in the cases investigated, for the use of enforcement officers and for the trial of causes. The services of the Director of the Bureau, and of the Director's assistants,employees of the Bureau may be required by the Governor in connection with the investigation of any crime committed anywhere in the State when called upon by the enforcement officers of the State, and when, in the judgment of the Governor, such services may be rendered with advantage to the enforcement of the criminal law. The State Bureau of Investigation is hereby authorized to investigate without request the attempted arson of, or arson of, damage of, theft from, or theft of, or misuse of, any State‑owned personal property, buildings, or other real property or any assault upon or threats against any legislative officer named in G.S. 147‑2(1), (2), or (3), any executive officer named in G.S. 147‑3(c), or any court officer as defined in G.S. 14‑16.10(1).

(a1)      The Bureau also is authorized at the request of the Governor to conduct a background investigation on a person that the Governor plans to nominate for a position that must be confirmed by the General Assembly, the Senate, or the House of Representatives. The background investigation of the proposed nominee shall be limited to an investigation of the person's criminal record, educational background, employment record, records concerning the listing and payment of taxes, and credit record, and to a requirement that the person provide the information contained in the statements of economic interest required to be filed by persons subject to Chapter 138A of the General Statutes. The Governor must give the person being investigated written notice that the Governor intends to request a background investigation at least 10 days prior to the date that the Governor requests the State Bureau of Investigation to conduct the background investigation. The written notice shall be sent by regular mail, and there is created a rebuttable presumption that the person received the notice if the Governor has a copy of the notice.

(c)        All records and evidence collected and compiled by the Director of the Bureau and his assistantsemployees of the Bureau shall, upon request, be made available to the district attorney of any district if the same concerns persons or investigations in his district.

(d)        In all cases where the cost is assessed against the defendant and paid by him, there shall be assessed in the bill of cost, mileage and witness fees to the Director and any of his assistants any employees of the Bureau who are witnesses in cases arising in courts of this State. The fees so assessed, charged and collected shall be forwarded by the clerks of the court to the Treasurer of the State of North Carolina, and there credited to the Bureau of Identification and Investigation Fund."

SECTION 17.1.(xx)  G.S. 114‑19.1(d), as recodified by subsection (l) of this section, reads as rewritten:

"(d)      Nothing in this section shall be construed as enlarging any right to receive any record of the State Bureau of Investigation. Such rights are and shall be controlled by G.S. 114‑15, G.S. 114‑19, G.S.ºG.S. 143B‑919, 143B‑906, 120‑19.4A, and other applicable statutes."

SECTION 17.1.(yy)  G.S. 114‑19.6(b), as recodified by subsection (l) of this section and rewritten by subsection (o) of this section, reads as rewritten:

"(b)      When requested by the Department of Health and Human Services or the Division of Juvenile Justice of the Department of Public Safety, the North Carolina Department of Public Safety may provide to the requesting department or division a covered person's criminal history from the State Repository of Criminal Histories. Such requests shall not be due to a person's age, sex, race, color, national origin, religion, creed, political affiliation, or handicapping condition as defined by G.S. 168A‑3. For requests for a State criminal history record check only, the requesting department or division shall provide to the Department of Public Safety a form consenting to the check signed by the covered person to be checked and any additional information required by the Department of Public Safety. National criminal record checks are authorized for covered applicants who have not resided in the State of North Carolina during the past five years. For national checks the Department of Health and Human Services or the Division of Juvenile Justice of the Department of Public Safety shall provide to the North Carolina Department of Public Safety the fingerprints of the covered person to be checked, any additional information required by the Department of Public Safety, and a form signed by the covered person to be checked consenting to the check of the criminal record and to the use of fingerprints and other identifying information required by the State or National Repositories. The fingerprints of the individual shall be forwarded to the State Bureau of Investigation for a search of the State criminal history record file and the State Bureau of Investigation shall forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The Department of Health and Human Services and the Division of Juvenile Justice of the Department of Public Safety shall keep all information pursuant to this section confidential. The Department of Public Safety shall charge a reasonable fee for conducting the checks of the criminal history records authorized by this section."

SECTION 17.1.(zz)  G.S. 114‑20, as recodified as G.S. 143B‑986 by subsection (m) of this section, reads as rewritten:

"§ 143B‑986.  Authority to provide protection to certain public officials.

The North Carolina State Bureau of Investigation is authorized to provide protection to public officials who request it, and who, in the discretion of the Director of the Bureau with the approval of the Attorney General, the Secretary of Public Safety, demonstrate a need for such protection. The bureau shall not provide protection for any individual other than the Governor for a period greater than 30 days without review and reapproval by the Attorney General.Secretary of Public Safety. This review and reapproval shall be required at the end of each 30‑day period."

SECTION 17.1.(aaa)  G.S. 114‑20.1, as recodified as G.S. 143B‑987 by subsection (m) of this section, reads as rewritten:

"§ 143B‑987.  Authority to designate areas for protection of public officials.

(a)        The Attorney GeneralSecretary of Public Safety is authorized to designate buildings and grounds which constitute temporary residences or temporary offices of any public official being protected under authority of G.S. 114‑20,G.S. 143B‑986, or any area that will be visited by any such official, a public building or facility during the time of such use.

(b)        The Attorney General or the Director of the State Bureau of InvestigationSecretary of Public Safety may, with the consent of the official to be protected, make rules governing ingress to or egress from such buildings, grounds or areas designated under this section."

SECTION 17.1.(bbb)  G.S. 122C‑80 reads as rewritten:

"§ 122C‑80.  Criminal history record check required for certain applicants for employment.

(b)        Requirement. – An offer of employment by a provider licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned on consent to a State and national criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. A provider shall not employ an applicant who refuses to consent to a criminal history record check required by this section. Except as otherwise provided in this subsection, within five business days of making the conditional offer of employment, a provider shall submit a request to the Department of JusticeDepartment of Public Safety under G.S. 114‑19.10G.S. 143B‑939 to conduct a criminal history record check required by this section or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G.S. 114‑19.10,G.S. 143B‑939, the Department of JusticeDepartment of Public Safety shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Criminal Records Check Unit. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Criminal Records Check Unit, shall notify the provider as to whether the information received may affect the employability of the applicant. In no case shall the results of the national criminal history record check be shared with the provider. Providers shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. A county that has adopted an appropriate local ordinance and has access to the Division of Criminal Information data bank may conduct on behalf of a provider a State criminal history record check required by this section without the provider having to submit a request to the Department of Justice. In such a case, the county shall commence with the State criminal history record check required by this section within five business days of the conditional offer of employment by the provider. All criminal history information received by the provider is confidential and may not be disclosed, except to the applicant as provided in subsection (c) of this section. For purposes of this subsection, the term "private entity" means a business regularly engaged in conducting criminal history record checks utilizing public records obtained from a State agency.

(g)        Conditional Employment. – A provider may employ an applicant conditionally prior to obtaining the results of a criminal history record check regarding the applicant if both of the following requirements are met:

(1)        The provider shall not employ an applicant prior to obtaining the applicant's consent for criminal history record check as required in subsection (b) of this section or the completed fingerprint cards as required in G.S. 114‑19.10.G.S. 143B‑939.

(2)        The provider shall submit the request for a criminal history record check not later than five business days after the individual begins conditional employment."

SECTION 17.1.(ccc)  G.S. 122C‑205(c) reads as rewritten:

"(c)       Upon receipt of notice of an escape or breach of a condition of release as described in subsections (a) and (b) of this section, an appropriate law enforcement officer shall take the client into custody and have the client returned to the 24‑hour facility from which the client has escaped or has been conditionally released. Transportation of the client back to the 24‑hour facility shall be provided in the same manner as described in G.S. 122C‑251 and G.S. 122C‑408(b). Law enforcement agencies who are notified of a client's escape or breach of conditional release shall be notified of the client's return by the responsible 24‑hour facility. Under the circumstances described in this section, the initial notification by the 24‑hour facility of the client's escape or breach of conditional release shall be given by telephone communication to the appropriate law enforcement agency or agencies and, if available and appropriate, by Division of Criminal Information (DCI)Department of Public Safety message to any law enforcement agency in or out of state and by entry into the National Crime Information Center (NCIC) telecommunications system. As soon as reasonably possible following notification, written authorization to take the client into custody shall also be issued by the 24‑hour facility. Under this section, law enforcement officers shall have the authority to take a client into custody upon receipt of the telephone notification or Division of Criminal InformationDepartment of Public Safety message prior to receiving written authorization. The notification of a law enforcement agency does not, in and of itself, render this information public information within the purview of Chapter 132 of the General Statutes. However, the responsible law enforcement agency shall determine the extent of disclosure of personal identifying and background information reasonably necessary, under the circumstances, in order to assure the expeditious return of a client to the 24‑hour facility involved and to protect the general public and is authorized to make such disclosure. The responsible law enforcement agency may also place any appropriate message or entry into either the Division of Criminal Information SystemDepartment of Public Safety's Criminal Information System or National Crime Information System, or both, as appropriate."

SECTION 17.1.(ddd)  G.S. 131D‑10.3A reads as rewritten:

"§ 131D‑10.3A.  Mandatory criminal checks.

(d)        The Department of JusticeDepartment of Public Safety shall provide to the Department the criminal history of the individuals specified in subsection (a) of this section obtained from the State and National Repositories of Criminal Histories as requested by the Department. The Department shall provide to the Department of Justice,Department of Public Safety, along with the request, the fingerprints of the individual to be checked, any additional information required by the Department of Justice,Department of Public Safety, and a form consenting to the check of the criminal record and to the use of fingerprints and other identifying information required by the State or National Repositories signed by the individual to be checked. The fingerprints of the individual to be checked shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check.

(i)         The Department of JusticeDepartment of Public Safety shall perform the State and national criminal history checks on individuals required by this section and shall charge the Department a reasonable fee only for conducting the checks of the national criminal history records authorized by this section. The Division of Social Services, Department of Health and Human Services, shall bear the costs of implementing this section."

SECTION 17.1.(eee)  G.S. 131D‑40 reads as rewritten:

"§ 131D‑40.  Criminal history record checks required for certain applicants for employment.

(a)        Requirement; Adult Care Home. – An offer of employment by an adult care home licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned on consent to a criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. An adult care home shall not employ an applicant who refuses to consent to a criminal history record check required by this section. Within five business days of making the conditional offer of employment, an adult care home shall submit a request to the Department of JusticeDepartment of Public Safety under G.S. 114‑19.10G.S. 143B‑939 to conduct a State or national criminal history record check required by this section, or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G.S. 114‑19.10,G.S. 143B‑939, the Department of Justice Department of Public Safety shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Criminal Records Check Unit. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Criminal Records Check Unit, shall notify the adult care home as to whether the information received may affect the employability of the applicant. In no case shall the results of the national criminal history record check be shared with the adult care home. Adult care homes shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. All criminal history information received by the home is confidential and may not be disclosed, except to the applicant as provided in subsection (b) of this section.

(a1)      Requirement; Contract Agency of Adult Care Home. – An offer of employment by a contract agency of an adult care home licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned upon consent to a criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. A contract agency of an adult care home shall not employ an applicant who refuses to consent to a criminal history record check required by this section. Within five business days of making the conditional offer of employment, a contract agency of an adult care home shall submit a request to the Department of JusticeDepartment of Public Safety under G.S. 114‑19.10G.S. 143B‑939 to conduct a State or national criminal history record check required by this section, or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G.S. 114‑19.10,G.S. 143B‑939, the Department of Justice Department of Public Safety shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Criminal Records Check Unit. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Criminal Records Check Unit, shall notify the contract agency of the adult care home as to whether the information received may affect the employability of the applicant. In no case shall the results of the national criminal history record check be shared with the contract agency of the adult care home. Contract agencies of adult care homes shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. All criminal history information received by the contract agency is confidential and may not be disclosed, except to the applicant as provided by subsection (b) of this section.

(f)         Conditional Employment. – An adult care home may employ an applicant conditionally prior to obtaining the results of a criminal history record check regarding the applicant if both of the following requirements are met:

(1)        The adult care home shall not employ an applicant prior to obtaining the applicant's consent for a criminal history record check as required in subsection (a) of this section or the completed fingerprint cards as required in G.S. 114‑19.10.G.S. 143B‑939.

(2)        The adult care home shall submit the request for a criminal history record check not later than five business days after the individual begins conditional employment.

…."

SECTION 17.1.(fff)  G.S. 131E‑159(g) reads as rewritten:

"(g)       An individual who applies for EMS credentials, seeks to renew EMS credentials, or holds EMS credentials is subject to a criminal background review by the Department. At the request of the Department, the Emergency Medical Services Disciplinary Committee, established by G.S. 143‑519, shall review criminal background information and make a recommendation regarding the eligibility of an individual to obtain initial EMS credentials, renew EMS credentials, or maintain EMS credentials. The Department and the Emergency Medical Services Disciplinary Committee shall keep all information obtained pursuant to this subsection confidential. The Medical Care Commission shall adopt rules to implement the provisions of this subsection, including rules to establish a reasonable fee to offset the actual costs of criminal history information obtained pursuant to G.S. 114‑19.21.G.S. 143B‑952."

SECTION 17.1.(ggg)  G.S. 131E‑265 reads as rewritten:

"§ 131E‑265.  Criminal history record checks required for certain applicants for employment.

(a)        Requirement; Nursing Home or Home Care Agency. – An offer of employment by a nursing home licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned on consent to a criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. An offer of employment by a home care agency licensed under this Chapter to an applicant to fill a position that requires entering the patient's home is conditioned on consent to a criminal history record check of the applicant. In addition, employment status change of a current employee of a home care agency licensed under this Chapter from a position that does not require entering the patient's home to a position that requires entering the patient's home shall be conditioned on consent to a criminal history record check of that current employee. If the applicant for employment or if the current employee who is changing employment status has been a resident of this State for less than five years, then the offer of employment or change in employment status is conditioned on consent to a State and national criminal history record check. The national criminal history record check shall include a check of the applicant's or current employee's fingerprints. If the applicant or current employee has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant or current employee applying for a change in employment status. A nursing home or a home care agency shall not employ an applicant who refuses to consent to a criminal history record check required by this section. In addition, a home care agency shall not change a current employee's employment status from a position that does not require entering the patient's home to a position that requires entering the patient's home who refuses to consent to a criminal history record check required by this section. Within five business days of making the conditional offer of employment, a nursing home or home care agency shall submit a request to the Department of JusticeDepartment of Public Safety under G.S. 114.19.10G.S. 143B‑939 to conduct a State or national criminal history record check required by this section, or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G.S. 114‑19.10,G.S. 143B‑939, the Department of Justice Department of Public Safety shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Criminal Records Check Unit. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Criminal Records Check Unit, shall notify the nursing home or home care agency as to whether the information received may affect the employability of the applicant. In no case shall the results of the national criminal history record check be shared with the nursing home or home care agency. Nursing homes and home care agencies shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. All criminal history information received by the home or agency is confidential and may not be disclosed, except to the applicant as provided in subsection (b) of this section.

(a1)      Requirement; Contract Agency of Nursing Home or Home Care Agency. – An offer of employment by a contract agency of a nursing home or home care agency licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned upon consent to a criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. A contract agency of a nursing home or home care agency shall not employ an applicant who refuses to consent to a criminal history record check required by this section. Within five business days of making the conditional offer of employment, a contract agency of a nursing home or home care agency shall submit a request to the Department of JusticeDepartment of Public Safety under G.S. 114‑19.10G.S. 143B‑939 to conduct a State or national criminal history record check required by this section, or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G.S. 114‑19.10,G.S. 143B‑939, the Department of Justice Department of Public Safety shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Criminal Records Check Unit. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Criminal Records Check Unit, shall notify the contract agency of the nursing home or home care agency as to whether the information received may affect the employability of the applicant. In no case shall the results of the national criminal history record check be shared with the contract agency of the nursing home or home care agency. Contract agencies of nursing homes and home care agencies shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. All criminal history information received by the contract agency is confidential and may not be disclosed, except to the applicant as provided by subsection (b) of this section.

(f)         Conditional Employment. – A nursing home or home care agency may employ an applicant conditionally prior to obtaining the results of a criminal history record check regarding the applicant if both of the following requirements are met:

(1)        The nursing home or home care agency shall not employ an applicant prior to obtaining the applicant's consent for a criminal history record check as required in subsection (a) of this section or the completed fingerprint cards as required in G.S. 114‑19.10.G.S. 143B‑939.

(2)        The nursing home or home care agency shall submit the request for a criminal history record check not later than five business days after the individual begins conditional employment.

…."

SECTION 17.1.(hhh)  G.S. 143‑143.10(b)(6) reads as rewritten:

"(6)      To request that the Department of JusticeDepartment of Public Safety  conduct criminal history checks of applicants for licensure pursuant to G.S. 114‑19.13.G.S. 143B‑944."

SECTION 17.1.(iii)  G.S. 148‑37.3(c) reads as rewritten:

"(c)       Any private corporation described in subsection (a) of this section shall reimburse the State and any county or other law enforcement agency for the full cost of any additional expenses incurred by the State or the county or other law enforcement agency in connection with the pursuit and apprehension of an escaped inmate from the facility.

In the event of an escape from the facility, any private corporation described in subsection (a) of this section shall immediately notify the sheriff in the county in which the facility is located, who shall cause an immediate entry into the State Bureau of Investigation Division of Criminal Information network.Department of Public Safety's Criminal Information Network. The sheriff of the county in which the facility is located shall be the lead law enforcement officer in connection with the pursuit and apprehension of an escaped inmate from the facility."

SECTION 17.1.(jjj)  G.S. 153A‑94.2 reads as rewritten:

"§ 153A‑94.2.  Criminal history record checks of employees permitted.

The board of commissioners may adopt or provide for rules and regulations or ordinances concerning a requirement that any applicant for employment be subject to a criminal history record check of State and National Repositories of Criminal Histories conducted by the Department of Justice Department of Public Safety in accordance with G.S. 114‑19.14.G.S. 143B‑945. The local or regional public employer may consider the results of these criminal history record checks in its hiring decisions."

SECTION 17.1.(kkk)  G.S. 160A‑164.2 reads as rewritten:

"§ 160A‑164.2.  Criminal history record check of employees permitted.

The council may adopt or provide for rules and regulations or ordinances concerning a requirement that any applicant for employment be subject to a criminal history record check of State and National Repositories of Criminal Histories conducted by the Department of JusticeDepartment of Public Safety in accordance with G.S. 114‑19.14.G.S. 143B‑945. The city may consider the results of these criminal history record checks in its hiring decisions."

SECTION 17.1.(lll)  G.S. 164‑44(a) reads as rewritten:

"(a)       The Commission shall have the secondary duty of collecting, developing, and maintaining statistical data relating to sentencing, corrections, and juvenile justice so that the primary duties of the Commission will be formulated using data that is valid, accurate, and relevant to this State. All State agencies shall provide data as it is requested by the Commission. For the purposes of G.S. 114‑19.1,G.S. 143B‑930, the Commission shall be considered to be engaged in the administration of criminal justice. All meetings of the Commission shall be open to the public and the information presented to the Commission shall be available to any State agency or member of the General Assembly."

SECTION 17.1.(mmm)  Subpart C of Part 2 of Article 4 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B‑926.  Appointment and term of the Director of the State Bureau of Investigation.

(a)        The Director of the State Bureau of Investigation shall be appointed by the Governor for a term of eight years subject to confirmation by the General Assembly by joint resolution. The name of the person to be appointed by the Governor shall be submitted by the Governor to the General Assembly for confirmation by the General Assembly on or before May 1 of the year in which the term for which the appointment is to be made expires. Upon failure of the Governor to submit a name as herein provided, the President Pro Tempore of the Senate and the Speaker of the House of Representatives jointly shall submit a name of an appointee to the General Assembly on or before May 15 of the same year. The appointment shall then be made by enactment of a bill. The bill shall state the name of the person being appointed, the office to which the appointment is being made, the effective date of the appointment, the date of expiration of the term, the residence of the appointee, and that the appointment is made upon the joint recommendation of the Speaker of the House of Representatives and the President Pro Tempore of the Senate. Nothing precludes any member of the General Assembly from proposing an amendment to any bill making such an appointment.

(b)        The Director may be removed from office by the Governor for any of the grounds set forth in G.S. 143B‑13(b), (c), and (d). In case of a vacancy in the office of the Director of the State Bureau of Investigation for any reason prior to the expiration of the Director's term of office, the name of the Director's successor shall be submitted by the Governor to the General Assembly not later than 60 days after the vacancy arises. If a vacancy arises in the office when the General Assembly is not in session, the Director shall be appointed by the Governor to serve on an interim basis pending confirmation by the General Assembly."

SECTION 17.1.(nnn)  Notwithstanding anything in G.S. 143B‑926, as enacted by subsection (mmm) of this section, to the contrary, the Governor shall appoint an acting Director of the State Bureau of Investigation who shall serve until a new Director is appointed pursuant to G.S. 143B‑926. A Director shall be appointed pursuant to G.S. 143B‑926 no later than June 1, 2015, for a term that shall end on June 30, 2023.

SECTION 17.1.(ooo)  Notwithstanding any other provision of law, there shall be no transfer of positions to or from the State Bureau of Investigation and no changes to the authorized budget of the State Bureau of Investigation, as it existed on March 1, 2014, prior to the transfer of the State Bureau of Investigation to the Department of Public Safety. Under no circumstances shall funds be expended from Budget Code 23606 – Justice Seized and Forfeited Assets, unless those expenditures were reported to the NC General Assembly on or before February 4, 2014.

 

ALCOHOL LAW ENFORCEMENT SECTION TRANSFER

SECTION 17.1.(ppp)  The Alcohol Law Enforcement Section shall be relocated as a branch under the State Bureau of Investigation.

SECTION 17.1.(qqq)  G.S. 18B‑500 reads as rewritten:

"§ 18B‑500.  Alcohol law‑enforcement agents.

(a)        Appointment. – The Secretary of Public SafetyDirector of the State Bureau of Investigation shall appoint alcohol law‑enforcement agents and other enforcement personnel. The Secretary of Public SafetyDirector may also appoint regular employees of the Commission as alcohol law‑enforcement agents. Alcohol law‑enforcement agents shall be designated as "alcohol law‑enforcement agents". Persons serving as reserve alcohol law‑enforcement agents are considered employees of the Alcohol Law Enforcement Section Branch for workers' compensation purposes while performing duties assigned or approved by the Director Head of the Alcohol Law Enforcement Section Branch or the Director's Head's designee.

(b)        Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an alcohol law‑enforcement agent shall have authority to arrest and take other investigatory and enforcement actions for any criminal offense. The primary responsibility of an agent shall be enforcement of the ABC laws, lottery laws, and Article 5 of Chapter 90 (The Controlled Substances Act); however, an agent may perform any law‑enforcement duty assigned by the Secretary of Public Safety or the Governor.ABC and lottery laws.

(g)        Shifting of Personnel From One District to Another. – The Director Head of the Alcohol Law Enforcement Section,Branch, under rules adopted by the Department of Public Safety may, from time to time, shift the forces from one district to another or consolidate more than one district force at any point for special purposes. Whenever an agent of the Alcohol Law Enforcement Section is transferred from one district to another for the convenience of the State or for reasons other than the request of the agent, the Department shall be responsible for transporting the household goods, furniture, and personal apparel of the agent and members of the agent's household."

SECTION 17.1.(rrr)  The following statutes are amended by deleting the word "Section" wherever it appears in uppercase and substituting "Branch": G.S. 18B‑101(5), 18B‑201, 18B‑202, 18B‑203, 18B‑504, 18B‑805, 18B‑902, 18B‑903, 18B‑904, 19‑2.1, 105‑259(b)(15), and 143‑652.1 through 143‑658.

SECTION 17.1.(sss)  G.S. 143‑651 reads as rewritten:

"§ 143‑651.  Definitions.

The following definitions apply in this Article:

(4a)      Branch. – The Alcohol Law Enforcement Branch of the State Bureau of Investigation.

...

(23b)    Sanctioned amateur match. – Any match regulated by an amateur sports organization that has been recognized and approved by the Section.Branch.

(24a)    Section. – The Alcohol Law Enforcement Section of the Department of Public Safety.

…."

SECTION 17.1.(ttt)  G.S. 114‑19(a), recodified as G.S. 143B‑906 by subsection (j) of this act, reads as rewritten:

"(a)       It shall be the duty of the State Bureau of Investigation to receive and collect police criminal information, to assist in locating, identifying, and keeping records of criminals in this State, and from other states, and to compare, classify, compile, publish, make available and disseminate any and all such information to the sheriffs, constables, police authorities, courts or any other officials of the State requiring such criminal identification, crime statistics and other information respecting crimes local and national, and to conduct surveys and studies for the purpose of determining so far as is possible the source of any criminal conspiracy, crime wave, movement or cooperative action on the part of the criminals, reporting such conditions, and to cooperate with all officials in detecting and preventing."

 

MISCELLANEOUS PROVISIONS

SECTION 17.1.(uuu)  The Department of Public Safety shall consolidate ALE and SBI Regions and Regional Offices. These regional offices shall be operational by October 1, 2014.

SECTION 17.1.(vvv)  The Department of Public Safety shall make the following reports on progress implementing this section to the Joint Legislative Oversight Committee on Justice and Public Safety:

(1)        An interim report on or before January 1, 2015.

(2)        A second interim report on or before April 1, 2015.

(3)        A final report on or before October 1, 2015. This report may include any recommendations for changes to applicable statutes.

SECTION 17.1.(xxx)  Subsection (ooo) of this section is effective when it becomes law. The remainder of this section becomes effective July 1, 2014.

 

Study Merger of State Crime Lab and Office of the State Medical Examiner

SECTION 17.3.  The Joint Legislative Oversight Committee on Justice and Public Safety and the Joint Legislative Oversight Committee on Health and Human Services shall jointly study merging the North Carolina State Crime Laboratory and the Office of the State Medical Examiner into a single independent State agency and shall report their findings and recommendations to the 2015 General Assembly. The study and report required by this section shall include at least the following:

(1)        An examination of whether the quality or quantity of services provided by each agency would improve if the two agencies were merged into a single independent State agency.

(2)        An analysis of potential cost-savings that might be realized as a result of the merger.

(3)        Identification of potential obstacles to the merger.

 

Ensure Proper Role for Attorney General

SECTION 17.3A.(a)  G.S. 120‑32.6 reads as rewritten:

"§ 120‑32.6.  Certain employment authority.

(a)        Use of Private Counsel. – G.S. 114‑2.3 and G.S. 147‑17 (a) through (c) shall not apply to the General Assembly.

(b)        General Assembly as Client of Attorney General by Operation of Law. – Whenever the validity or constitutionality of an act of the General Assembly or a provision of the Constitution of North Carolina is the subject of an action in any court of this State, if the General Assembly hires outside counsel to represent the General Assembly in connection with that action, the General Assembly shall be deemed to be a client of the Attorney General for purposes of that action as a matter of law.

(c)        General Assembly Counsel Shall Be Lead Counsel. – In those instances when the General Assembly employs counsel in addition to or other than the Attorney General, the Speaker of the House of Representatives and the President Pro Tempore of the Senate may jointly designate the counsel employed by the General Assembly as lead counsel. The lead counsel so designated shall possess final decision‑making authority with respect to the representation, counsel, or service, and other cocounsel shall, consistent with the Rules of Professional Conduct, cooperate with such designated lead counsel.

(d)        The rights provided by this section shall be supplemental to those provided by any other provision of law."

SECTION 17.3A.(b)  This section is effective when it becomes law.

 

Transfer Private Protective Services Board and Alarm Systems Licensing Board to the Department of Public Safety

SECTION 17.5.(a)  The Private Protective Services Board and the Alarm Systems Licensing Board are hereby transferred to the Department of Public Safety. These transfers shall have all of the elements of a Type II transfer, as described in G.S. 143A‑6.

SECTION 17.5.(b)  The following statutes are amended by deleting "Attorney General" wherever it appears and substituting "Secretary of Public Safety": G.S. 74C‑6, 74C‑7, and 74C‑13.

SECTION 17.5.(c)  G.S. 74C‑4 reads as rewritten:

"§ 74C‑4.  Private Protective Services Board established; members; terms; vacancies; compensation; meetings.

(a)        The Private Protective Services Board is hereby established in the Department of Justice Department of Public Safety to administer the licensing and set educational and training requirements for persons, firms, associations, and corporations engaged in a private protective services profession within this State.

(b)        The Board shall consist of 14 members: the Attorney General or his the Secretary of Public Safety or the Secretary's designated representative, two persons appointed by the Attorney General, one person three persons appointed by the Governor, five persons appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, and five persons appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives. All appointments by the General Assembly shall be subject to the provisions of G.S. 120‑121, and vacancies in the positions filled by those appointments shall be filled pursuant to G.S. 120‑122. One of those persons appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate and all five persons appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives shall be licensees under this Chapter; all other appointees may not be licensees of the Board nor licensed by the Board while serving as Board members. All persons appointed shall serve terms of three years. With the exception of the Attorney General or his Secretary of Public Safety or the Secretary's designated representative, no person shall serve more than eight consecutive years on the Board, including years of service prior and subsequent to July 1, 1983. Board. Board members may continue to serve until their successors have been appointed.

…."

SECTION 17.5.(d)  G.S. 74C‑6, as rewritten by subsection (b) of this section, reads as rewritten:

"§ 74C‑6.  Position of Director created.

The position of Director of the Private Protective Services Board is hereby created within the Department of Justice. Department of Public Safety. The Secretary of Public Safety shall appoint a person to fill this full‑time position. The Director's duties shall be to administer the directives contained in this Chapter and the rules promulgated by the Board to implement this Chapter and to carry out the administrative duties incident to the functioning of the Board in order to actively police the private protective services industry to ensure compliance with the law in all aspects."

SECTION 17.5.(e)  G.S. 74D‑4(b) reads as rewritten:

"(b)      The Board shall consist of seven members: the Attorney General Secretary of Public Safety or his designee; two persons appointed by the Governor, one of whom shall be licensed under this Chapter and one of whom shall be a public member; two persons appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121, one of whom shall be licensed under this Chapter and one of whom shall be a public member; and two persons appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120‑121, one of whom shall be licensed under this Chapter and one of whom shall be a public member."

SECTION 17.5.(f)  G.S. 74D‑5.1 reads as rewritten:

"§ 74D‑5.1.  Position of Director created.

The position of Director of the Alarm Systems Licensing Board is hereby created within the Department of Justice. Public Safety. The Attorney General Secretary of Public Safety shall appoint a person to fill this full‑time position. The Director's duties shall be to administer the directives contained in this Chapter and the rules promulgated by the Board to implement this Chapter and to carry out the administrative duties incident to the functioning of the Board in order to actively police the alarm systems industry to insure compliance with the law in all aspects. The Director may issue a temporary grant or denial of a request for registration subject to final action by the Board at its next regularly scheduled meeting."

SECTION 17.5.(g)  G.S. 74D‑5.2 reads as rewritten:

"§ 74D‑5.2.  Investigative powers of the Attorney General.Secretary of Public Safety.

The Attorney General for the State of North Carolina Secretary of Public Safety shall have the power to investigate or cause to be investigated any complaints, allegations, or suspicions of wrongdoing or violations of this Chapter involving individuals licensed, or to be licensed, under this Chapter. Any investigation conducted pursuant to this section is deemed confidential and is not subject to review under G.S. 132‑1 until the investigation is complete and a report is presented to the Board. However, the report may be released to the licensee after the investigation is complete but before the report is presented to the Board."

 

PART XVIII. JUDICIAL DEPARTMENT

 

SUBPART XVIII‑A. OFFICE OF INDIGENT DEFENSE SERVICES

 

FINAL REPORT ON CRIMINAL CASE INFORMATION SYSTEM

SECTION 18A.2.  Section 18B.10 of S.L. 2013‑360 reads as rewritten:

"SECTION 18B.10.  The Administrative Office of the Courts, in consultation with the Office of Indigent Defense Services, shall use the sum of three hundred fifty thousand dollars ($350,000) in funds available to the Administrative Office of the Courts for the 2013‑2015 fiscal biennium and the sum of three hundred fifty thousand dollars ($350,000) in funds available to the Office of Indigent Defense Services for the 2013‑2015 fiscal biennium to develop or acquire and to implement a component of the Department's criminal case information system for use by public defenders no later than February 1, 2015. The Administrative Office of the Courts shall make an interim report on the development and implementation of this system by February 1, 2014, and a final report on the completed implementation of the system by March 1, 2015.July 1, 2015, to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety and to the Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety."

 

SUBPART XVIII‑B. ADMINISTRATIVE OFFICE OF THE COURTS

 

AMEND VARIOUS PROVISIONS REQUIRING REPORTS ON THE OPERATIONS OF THE COURTS

SECTION 18B.1.(a)  G.S. 7A‑343 reads as rewritten:

"§ 7A‑343.  Duties of Director.

The Director is the Administrative Officer of the Courts, and the Director's duties include all of the following:

(8)        Prepare and submit an annual report on the work of the Judicial Department to the Chief Justice, and transmit a copy to each member of the General Assembly. the Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety and to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety. The annual report shall include the activities of each North Carolina Business Court site, including the number of new, closed, and pending cases, the average age of pending cases, and the annual expenditures for the prior fiscal year.

…."

SECTION 18B.1.(b)  G.S. 7A‑343.2 reads as rewritten:

"§ 7A‑343.2.  Court Information Technology Fund.

(a)        Fund. – The Court Information Technology Fund is established within the Judicial Department as a special revenue fund. Interest and other investment income earned by the Fund accrues to it. The Fund consists of the following revenues:

(1)        All monies collected by the Director pursuant to G.S. 7A‑109(d) and G.S. 7A‑49.5.

(2)        State judicial facilities fees credited to the Fund under G.S. 7A‑304 through G.S. 7A‑307.

(b)        Use. – Money in the Fund derived from State judicial facilities fees must be used to upgrade, maintain, and operate the judicial and county courthouse phone systems. All other monies in the Fund must be used to supplement funds otherwise available to the Judicial Department for court information technology and office automation needs.

(c)        Report. – The Director must report annually by August 1 and February 1 of each year to the Joint Legislative Commission on Governmental Operations, the Chairs of the Senate and House Appropriations Committees, and the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety and the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety. The report must include the following:

(1)        Amounts credited in the preceding six months year to the Fund.

(2)        Amounts expended in the preceding six months year from the Fund and the purposes of the expenditures.

(3)        Proposed expenditures of the monies in the Fund."

SECTION 18B.1.(c)  G.S. 7A‑809 reads as rewritten:

"§ 7A‑809.  Reports.

The Conference of Clerks of Superior Court shall, in consultation with the registers of deeds, annually study the status of the individual counties and judicial districts as to whether or not the clerks of superior court or the registers of deeds are implementing G.S. 132‑1.10(f1) and report results of the study to the Joint Legislative Commission on Governmental Operations Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety and to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety on or before March 1 of each year."

SECTION 18B.1.(d)  Section 15.4 of S.L. 2009‑451 is repealed.

SECTION 18B.1.(e)  Article 7 of Chapter 7A of the General Statutes is amended by adding a new section to read:

"§ 7A‑45.5.  Annual report on Business Court activities.

The Administrative Office of the Courts shall report to the Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety and to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety by March 1 of each year on the activities of each North Carolina Business Court site, including the number of new, closed, and pending cases, average age of pending cases, and annual expenditures for the prior fiscal year."

SECTION 18B.1.(f)  G.S. 15A‑1475 reads as rewritten:

"§ 15A‑1475.  Reports.

Beginning January 1, 2008, and annually thereafter, the The North Carolina Innocence Inquiry Commission shall report annually by February 1 of each year on its activities to the Joint Legislative Oversight Committee on Justice and Public Safety and the State Judicial Council. The report may contain recommendations of any needed legislative changes related to the activities of the Commission. The report shall recommend the funding needed by the Commission, the district attorneys, and the State Bureau of Investigation in order to meet their responsibilities under S.L. 2006‑184. Recommendations concerning the district attorneys or the State Bureau of Investigation shall only be made after consultations with the North Carolina Conference of District Attorneys and the Attorney General."

SECTION 18B.1.(g)  G.S. 7A‑38.6 is repealed.

SECTION 18B.1.(h)  G.S. 7A‑409.1(g) reads as rewritten:

"(g)       The State Judicial Council shall report annually to the General Assembly Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety, to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety, and to the Chief Justice no later than December 31, 2009, and no later than December 31 of every third year, regarding the implementation of S.L. 2006‑184 S.L. 2006‑184, the act creating the North Carolina Innocence Inquiry Commission, and shall include in its report the statistics regarding inquiries and any recommendations for changes. The House of Representatives and the Senate shall refer the report of the State Judicial Council to the Joint Legislative Oversight Committee on Justice and Public Safety and such other committees as the Speaker of the House of Representatives or the President Pro Tempore of the Senate shall deem appropriate, for their review."

SECTION 18B.1.(i)  Section 18A.1 of S.L. 2013‑360 is repealed.

SECTION 18B.1.(j)  Article 39B of Chapter 7A of the General Statutes is amended by adding a new section to read:

"§ 7A‑498.9.  Annual report on Office of Indigent Defense Services.

The Office of Indigent Defense Services shall report to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety and to the Chairs of the House of Representatives Subcommittee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety by February 1 of each year on the following:

(1)        The volume and cost of cases handled in each district by assigned counsel or public defenders;

(2)        Actions taken by the Office to improve the cost‑effectiveness and quality of indigent defense services, including the capital case program;

(3)        Plans for changes in rules, standards, or regulations in the upcoming year; and

(4)        Any recommended changes in law or funding procedures that would assist the Office in improving the management of funds expended for indigent defense services, including any recommendations concerning the feasibility and desirability of establishing regional public defender offices."

SECTION 18B.1.(k)  Section 18A.4 of S.L. 2013‑360 reads as rewritten:

"SECTION 18A.4.  The Office of Indigent Defense Services shall issue a request for proposals from private law firms or not‑for‑profit legal representation organizations for the provision of all classes of legal cases for indigent clients in all judicial districts. The Office of Indigent Defense Services shall report on the issuance of this request for proposals to the Joint Legislative Commission on Governmental Operations by October 1, 2013. Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety and to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety by October 1 of each year. In cases where the proposed contract can provide representation services more efficiently than current costs and ensure that the quality of representation is sufficient to meet applicable constitutional and statutory standards, the Office of Indigent Defense Services shall use private assigned counsel funds to enter into contracts for this purpose. In selecting contracts, the Office of Indigent Defense Services shall consider the cost‑effectiveness of the proposed contract. Disputes regarding the ability of the potential contractor to provide effective representation for clients served by the contract shall be determined by the senior resident superior court judge for the district."

 

ANNUAL REPORT ON CRIMINAL COURT COST WAIVERS

SECTION 18B.2.  Section 15.10(b) of S.L. 2011‑145 reads as rewritten:

"SECTION 15.10.(b)  The Administrative Office of the Courts shall make the necessary modifications to its information systems to maintain records of all cases in which the judge makes a finding of just cause to grant a waiver of criminal court costs under G.S. 7A‑304(a) and shall report on those waivers to the Joint Legislative Commission on Governmental Operations by October 1  Chairs of the Senate Appropriations Committee on Justice and Public Safety, the Chairs of the House Appropriations Subcommittee on Justice and Public Safety, and the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety by February 1 of each year. The report shall aggregate the waivers by the district in which the waiver or waivers were granted and by the name of each judge granting a waiver or waivers."

 

COMPENSATION OF COURT REPORTERS

SECTION 18B.3.  Section 18B.21 of S.L. 2013‑360 reads as rewritten:

"SECTION 18B.21. The Administrative Office of the Courts, in consultation with the National Center for State Courts, shall study the most effective and efficient deployment of court reporters to produce timely records of court proceedings and the most appropriate and effective compensation for court reporters. The Administrative Office of the Courts shall make an interim report of its findings and recommendations to the Chairs of the House of Representatives Appropriations Subcommittee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety and to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety by February 1, 2014. February 1, 2014, and a final report of its findings and recommendations by January 1, 2015."

 

TRAINING FOR SUPERIOR AND DISTRICT COURT JUDGES

SECTION 18B.5.  The School of Government at the University of North Carolina at Chapel Hill, in cooperation with the Administrative Office of the Courts, the North Carolina Association of District Court Judges, the North Carolina Conference of Superior Court Judges, and the State Crime Laboratory, shall ensure that the continuing judicial education programs coordinated by the School of Government incorporate content related to the proper custody and handling of biological evidence, including relevant information about the work of the State Crime Laboratory. The topic shall be addressed in continuing legal education programs for superior and district court judges on a regular basis.

 

ABOLISH two SPECIAL SUPERIOR COURT JUDGESHIPS/authorize two additional business court judges/provide for the appointment of business court judges by the governor in consultation with the chief justice

SECTION 18B.6.(a)  G.S. 7A‑45.1 is amended by adding a new subsection to read:

"(a8)     Notwithstanding any other provision of this section, the two special superior court judgeships held as of April 1, 2014, by judges whose terms expire on January 26, 2016, are abolished when any of the following first occurs:

(1)        Retirement of the incumbent judge.

(2)        Resignation of the incumbent judge.

(3)        Removal from office of the incumbent judge.

(4)        Death of the incumbent judge.

(5)        Expiration of the term of the incumbent judge."

SECTION 18B.6.(b)  G.S. 7A‑45.3 reads as rewritten:

"§ 7A‑45.3.  Superior court judges designated for complex business cases.

(a)        The Chief Justice may exercise the authority under rules of practice prescribed pursuant to G.S. 7A‑34 to designate one or more of the special superior court judges authorized by G.S. 7A‑45.1 Governor, in consultation with the Chief Justice, shall appoint up to five special superior court judges as initially provided for in subsections (b) and (c) of this section to hear and decide complex business cases as prescribed by the rules of practice. Any judge so designated appointed shall be known as a Business Court Judge business court judge and shall preside in the Business Court. business court. If there is more than one business court judge, the Chief Justice may designate one of them as the Senior Business Court Judge. senior business court judge. If there is no designation by the Chief Justice, the judge with the longest term of service on the court shall serve as Senior Business Court Judge senior business court judge until the Chief Justice makes an appointment to the position.

(b)        The three special superior court judges designated by the Chief Justice as of April 1, 2014, as business court judges shall serve as three of the business court judges authorized under subsection (a) of this section until each judge's retirement, resignation, removal from office, or death or until the expiration of that judge's term. Upon the occurrence of each judge's retirement, resignation, removal from office, or death or until the expiration of the judge's term, the Governor shall appoint a successor as provided in subsection (a) of this section.

(c)        Notwithstanding the provisions of G.S. 7A‑45.1, the two additional business court judges shall be filled by appointment of the Governor as provided in subsection (a) of this section upon the retirement, resignation, removal from office, or death or until the expiration of the term of the incumbent judge of each of the two special superior court judgeships held as of April 1, 2014, by judges whose terms expire on April 29, 2015, and October 20, 2015.

(d)        Upon appointment, each business court judge shall serve a term expiring five years from the date that each judge takes office."

 

AUTHORIZE THE COURT TO ASSESS A FEE FOR THE COSTS OF THE SERVICES OF A PRIVATE HOSPITAL PERFORMING TOXICOLOGICAL TESTING FOR A PROSECUTORIAL DISTRICT

SECTION 18B.14.(a)  G.S. 7A‑304(a) reads as rewritten:

"(a)       In every criminal case in the superior or district court, wherein the defendant is convicted, or enters a plea of guilty or nolo contendere, or when costs are assessed against the prosecuting witness, the following costs shall be assessed and collected. No costs may be assessed when a case is dismissed. Only upon entry of a written order, supported by findings of fact and conclusions of law, determining that there is just cause, the court may (i) waive costs assessed under this section or (ii) waive or reduce costs assessed under subdivision (7), (8), (8a), (11), or (12) (12), or (13) of this section.

(7)        For the services of the North Carolina State Crime Laboratory facilities, the district or superior court judge shall, upon conviction, order payment of the sum of six hundred dollars ($600.00) to be remitted to the Department of Justice for support of the Laboratory. This cost shall be assessed only in cases in which, as part of the investigation leading to the defendant's conviction, the laboratories have performed DNA analysis of the crime, tests of bodily fluids of the defendant for the presence of alcohol or controlled substances, or analysis of any controlled substance possessed by the defendant or the defendant's agent.

(8)        For the services of any crime laboratory facility operated by a local government or group of local governments, the district or superior court judge shall, upon conviction, order payment of the sum of six hundred dollars ($600.00) to be remitted to the general fund of the local governmental unit that operates the laboratory to be used for law enforcement purposes. The cost shall be assessed only in cases in which, as part of the investigation leading to the defendant's conviction, the laboratory has performed DNA analysis of the crime, test of bodily fluids of the defendant for the presence of alcohol or controlled substances, or analysis of any controlled substance possessed by the defendant or the defendant's agent. The costs shall be assessed only if the court finds that the work performed at the local government's laboratory is the equivalent of the same kind of work performed by the North Carolina State Crime Laboratory under subdivision (7) of this subsection.

(8a)      For the services of any private hospital performing toxicological testing under contract with a prosecutorial district, the district or superior court judge shall, upon conviction, order payment of the sum of six hundred dollars ($600.00) to be remitted to the State Treasurer for the support of the General Court of Justice. The cost shall be assessed only in cases in which, as part of the investigation leading to the defendant's conviction, the laboratory has performed testing of bodily fluids of the defendant for the presence of alcohol or controlled substances. The costs shall be assessed only if the court finds that the work performed by the local hospital is the equivalent of the same kind of work performed by the North Carolina State Crime Laboratory under subdivision (7) of this subsection.

(11)      For the services of an expert witness employed by the North Carolina State Crime Laboratory who completes a chemical analysis pursuant to G.S. 20‑139.1 or a forensic analysis pursuant to G.S. 8‑58.20 and provides testimony about that analysis in a defendant's trial, the district or superior court judge shall, upon conviction of the defendant, order payment of the sum of six hundred dollars ($600.00) to be remitted to the Department of Justice for support of the State Crime Laboratory. This cost shall be assessed only in cases in which the expert witness provides testimony about the chemical or forensic analysis in the defendant's trial and shall be in addition to any cost assessed under subdivision (7) of this subsection.

(12)      For the services of an expert witness employed by a crime laboratory operated by a local government or group of local governments who completes a chemical analysis pursuant to G.S. 20‑139.1 or a forensic analysis pursuant to G.S. 8‑58.20 and provides testimony about that analysis in a defendant's trial, the district or superior court judge shall, upon conviction of the defendant, order payment of the sum of six hundred dollars ($600.00) to be remitted to the general fund of the local governmental unit that operates the laboratory to be used for local law enforcement. This cost shall be assessed only in cases in which the expert witness provides testimony about the chemical or forensic analysis in the defendant's trial and shall be in addition to any cost assessed under subdivision (8) of this subsection.

(13)      For the services of an expert witness employed by a private hospital performing toxicological testing under contract with a prosecutorial district who completes a chemical analysis pursuant to G.S. 20‑139.1 and provides testimony about that analysis in a defendant's trial, the district or superior court judge shall, upon conviction of the defendant, order payment of the sum of six hundred dollars ($600.00) to be remitted to the State Treasurer for the support of the General Court of Justice. This cost shall be assessed only in cases in which the expert witness provides testimony about the chemical analysis in the defendant's trial and shall be in addition to any cost assessed under subdivision (8a) of this subsection."

SECTION 18B.14.(b)  This section becomes effective December 1, 2014, and applies to fees assessed or collected on or after that date.

 

PART XIX. DEPARTMENT OF CULTURAL RESOURCES

 

CAP GRANTS FROM STATE AID TO LIBRARIES FUND

SECTION 19.2.  The Department of Cultural Resources shall not allocate a grant to a municipal or single-county library from the Aid to Public Libraries Fund that exceeds four hundred seventy-five thousand dollars ($475,000) for the 2014‑2015 fiscal year.

 

Queen Anne's Revenge Project Special Fund

SECTION 19.4.  Part 1 of Article 2 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B‑53.3. Queen Anne's Revenge Project.

(a)        Fund. – The Queen Anne's Revenge Project Special Fund is created as a special, interest‑bearing revenue fund within the Department of Cultural Resources, Office of Archives and History. The Fund shall consist of all receipts derived from private donations, grant funds, and earned revenue. The revenue in the Fund may be used only for contracted services, personal services and operations, conference and meeting expenses, travel, staff salaries, operations for laboratory needs, museum exhibits, and other administrative costs related to the Queen Anne's Revenge Project. The staff of the Office of Archives and History and the Department of Cultural Resources shall determine how the funds will be used for the purposes of the Queen Anne's Revenge Project, and those funds are hereby appropriated for those purposes.

(b)        Application. – This section applies to the Queen Anne's Revenge, the historic shipwreck owned by the State and managed by the Department of Cultural Resources, Office of Archives and History.

(c)        Reports. – The Department of Cultural Resources shall submit a report by September 30 of each year to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Subcommittee on General Government, the Senate Appropriations Committee on General Government and Information Technology, and the Fiscal Research Division. This report shall include the source and amount of all funds credited to the Fund and the purpose and amount of all expenditures from the Fund during the prior fiscal year."

 

Exempt DCR From Operating Rules Requirements Related to Historic Sites and Museums

SECTION 19.5.(a)  G.S. 121‑7.3 reads as rewritten:

"§ 121‑7.3.  Admission and related activity fees.fees and operating hours.

The Department of Cultural Resources may charge a reasonable admission and related activity fee to any historic site or museum administered by the Department. Admission and related activity fees collected under this section are receipts of the Department and shall be deposited in the appropriate special fund. The revenue collected pursuant to this section shall be used only for the individual historic site or museum where the receipts were generated. The Secretary may adopt rules necessary to carry out the provisions of this section. The Department is exempt from the requirements of Chapter 150B of the General Statutes and G.S. 12‑3.1 when adopting, amending, or repealing rules for operating hours and admission fees or related activity fees at historic sites and museums. The Department shall submit a report to the Joint Legislative Commission on Governmental Operations on the amount and purpose of a fee change within 30 days following its effective date."

SECTION 19.5.(b)  G.S. 143B‑71 reads as rewritten:

"§ 143B‑71.  Tryon Palace Commission – creation, powers and duties.

There is hereby created the Tryon Palace Commission of the Department of Cultural Resources with the power and duty to adopt, amend and rescind rules and regulations concerning the restoration and maintenance of the Tryon Palace complex, and other powers and duties as provided in Article 2 of Chapter 121 of the General Statutes of North Carolina, including the authority to charge reasonable admission and related activity fees. The Commission is exempt from the requirements of Chapter 150B of the General Statutes and G.S. 12‑3.1 when adopting, amending, or repealing rules for operating hours and admission fees or related activity fees at Tryon Palace Historic Sites and Gardens. The Commission shall submit a report to the Joint Legislative Commission on Governmental Operations on the amount and purpose of a fee change within 30 days following its effective date."

SECTION 19.5.(c)  G.S. 143B‑73 reads as rewritten:

"§ 143B‑73.  U.S.S. North Carolina Battleship Commission – creation, powers, and duties.

There is hereby created the U.S.S. North Carolina Battleship Commission of the Department of Cultural Resources with the power and duty to adopt, amend, and rescind rules and regulations under and not inconsistent with the laws of this State necessary in carrying out the provisions and purposes of this Part.

(3)        The Commission shall adopt rules and regulations consistent with the provisions of this Chapter. The Commission is exempt from the requirements of Chapter 150B of the General Statutes and G.S. 12‑3.1 when adopting, amending, or repealing rules for operating hours and admission fees or related activity fees at the U.S.S. North Carolina Battleship. The Commission shall submit a report to the Joint Legislative Commission on Governmental Operations on the amount and purpose of a fee change within 30 days following its effective date."

 

Closure of Mountain Gateway Museum Prohibited

SECTION 19.6.  The Department of Cultural Resources, Division of History Museums, shall not close the Mountain Gateway Museum during the 2014‑2015 fiscal year.

 

DCR Budget Integrity

SECTION 19.7.  In the development of the 2015‑2017 biennial continuation budget, the Office of State Budget and Management shall restore various underfunded accounts for Archives and Records, Historic Preservation, and Personal Services within the Department of Cultural Resources.

 

Modify Roles of Roanoke Island Commission and Department of Cultural Resources in Managing Roanoke Island Festival Park

SECTION 19.8.  Part 27A of Article 2 of Chapter 143B of the General Statutes reads as rewritten:

"Part 27A. Roanoke Island Commission.

"§ 143B‑131.1.  Commission established.

There is established the Roanoke Island Commission. The Commission shall be an independent, self‑supporting commission, but shall be locatedCommission within the Department of Cultural Resources for historic resource management, organizational, and budgetary purposes.to advise and assist the Secretary of the Department of Cultural Resources in the protection, preservation, development, and interpretation of the historical and cultural assets of Roanoke Island.

"§ 143B‑131.2.  Roanoke Island Commission – Purpose, powers, and duties.

(a)        The Commission is created to combine various existing entities in the spirit of cooperation for a cohesive body to protect, preserve, develop, and interpret the historical and cultural assets of Roanoke Island. The Commission is further created tofundraise for and to operate and administer the Elizabeth II State Historic Site and Visitor Center, the Elizabeth II, Ice Plant Island, and allRoanoke Island Festival Park and all other properties under the administration of the Department of Cultural Resources located on Roanoke Island having historical significance to the State of North Carolina, Dare County, or the Town of Manteo, except as otherwise determined by the Commission.Department.

(b)        The Commission shall have the following powers and duties:

(1)        To advise the Secretary of the Department of Transportation and adopt rules on matters pertaining to, affecting, and encouraging restoration, preservation, and enhancement of the appearance, maintenance, and aesthetic quality of U.S. Highway 64/264 and the U.S. 64/264 Bypass travel corridor on Roanoke Island and the grounds on Roanoke Island Festival Park. However, the local government that has jurisdiction over the affected portion of the travel corridor shall process the applications for and issue the certificates of appropriateness and shall be responsible for the enforcement of those certificates and any rules adopted pursuant to this subdivision that apply to the portion of the travel corridor within the jurisdiction of the local government. No reimbursement shall be made by the Commission to the local government for the processing of applications or issuance of certificates of appropriateness, or the enforcement of those certificates or the rules.

(2)        To operate Roanoke Island Festival Park, including the Elizabeth II State Historic Site and Visitor Center and the Elizabeth II as permanent memorials commemorating the Roanoke Voyages, 1584‑1587.

(3)        To supervise the development of Ice Plant Island and to manage future facilities.

(4)        To advise the Secretary of the Department of Cultural Resources on matters pertinent to historical and cultural events on Roanoke Island.

(5)        With the assistance of the Department of Cultural Resources, to identify, preserve, and protect properties located on Roanoke Island having historical significance to the State of North Carolina, Dare County, or the Town of Manteo consistent with applicable State laws and rules.

(6)        To With the approval of the Secretary of the Department of Cultural Resources, establish and collect a charge for admission to any property or event operated by the Commission.

(7)        To solicit and accept gifts, grants, and donations.

(8)        To cooperate with the Secretary and Department of Cultural Resources, the Secretary and Department of Transportation, the Secretary and Department of Environment and Natural Resources, and other governmental agencies, officials, and entities, and provide them with assistance and advice.

(9)        To adopt and enforce such the bylaws, rules, and guidelines guidelines, not inconsistent with the rules and guidelines of the Department of Cultural Resources, that the Commission deems to be reasonably necessary in order to carry out its powers and duties. Notwithstanding the foregoing, Chapter 150B of the General Statutes does not apply to the adoption of rules by the Commission.

(10)      To fundraise, accept monies, gifts, donations, grants, or devises, which funds will be used by the Commission for purposes of carrying out its duties and purposes herein set forth. The Commission may establish a reserve fund to be maintained and used for contingencies and emergencies. The Friends of Elizabeth II, Inc., shall use the balance of any unencumbered funds that were transferred to it pursuant to this subdivision only for expenses of the Commission or the properties operated by the Commission that are identified as operating or for maintenance costs by the Commission and that are requested by the Commission.

(11)      By cooperative arrangement with other agencies, groups, individuals, and other entities, to coordinate and schedule historical and cultural events on Roanoke Island.

(12)      Make recommendations to the Secretary of Cultural Resources concerning personnel and budgetary matters.

(13)      To acquire real and personal property by purchase, gift, devise, and exchange.

(14)      To administer the Historic Roanoke Island Fund as provided in G.S. 143B‑131.8A.

(15)      To procure supplies, services, and property as appropriate and to enter into contracts, leases, or other legal agreements to carry out the purposes of this Part and duties of the Commission. The provisions of G.S. 143‑129 and Article 3 of Chapter 143 of the General Statutes do not apply to purchases by the Roanoke Island Commission of equipment, supplies, and services. However, the Commission shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subdivision to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all proposed contracts to be awarded by the Commission under this subdivision a standard clause which provides that the State Auditor and internal auditors of the Commission may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Commission shall not award a cost plus percentage of cost agreement or contract for any purpose.

"§ 143B‑131.3.  Assignment of property; offices.

Upon request of the Commission, the head of any State agency may assign property, equipment, and personnel of such agency to the Commission to assist the Commission in carrying out its duties under this Part. Assignments under this section shall be without reimbursement by the Commission to the agency from which the assignment was made.

"§ 143B‑131.4.  Commission reports.

Before July 1, 1995, the Commission shall submit to the General Assembly a comprehensive report incorporating specific recommendations of the Commission for development and promotion of the Elizabeth II State Historic Site and Visitor Center. After the initial report, theThe Commission shall submit a quarterly report to the Chairs of the House Appropriations Subcommittee on General Government and the Chairs of the Senate Appropriations Committee on General Government and Information Technology and to the Fiscal Research Division of the General Assembly. The report shall include:

"§ 143B‑131.5.  Roanoke Island Commission – Additional powers and duties; transfer of assets and liabilities.

(a)        The Commission shall also have the powers and duties established by Chapter 1194, Session Laws of 1981, as amended.To the extent that Chapter 1194 of the 1981 Session Laws is inconsistent with this Part, the powers and duties in this Part shall control.

"§ 143B‑131.6.  Roanoke Island Commission – Members; terms; vacancies; expenses; officers.

(a)        The Commission shall consist of 24 22 voting members appointed as follows:

(1)        Six members appointed by the Governor;

(2)        Six members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, at least two of whom reside in Dare County;

(3)        Six members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, at least two of whom reside in Dare County; and

(4)        The following persons, or their designees, ex officio:designees shall serve ex officio:

a.         The Governor;

b.         The Attorney General;

c.         The Secretary of the Department of Cultural Resources;

d.         The Secretary of the Department of Transportation;

e.         The Chair of the Dare County Board of Commissioners; and

f.          The Mayor of Manteo.

(5)        The Secretary of the Department of Cultural Resources, or the Secretary's designee, shall serve ex officio as a nonvoting member.

(c)        The Governor shall appoint a chair biennially from among the membership of the Commission. The initial term of the chair shall commence on October 1, 1994. The Commission shall elect from its membership a vice‑chair, a secretary, and treasurer to serve two‑year terms. The Commission in its discretion may appoint a historian to serve at its pleasure. Initial terms shall commence on October 1, 1994.

(g)        The chair shall convene the Commission. Meetings shall be held as often as necessary, but not less than two four times a year.

(i)         The Commission shall make its recommendations by March 15 of each year that terms expire for appointments for terms commencing July 1 of that year; provided the initial appointments for terms commencing October 1, 1994, shall be made upon recommendation of the Roanoke Island Historical Association.year.

"§ 143B‑131.8A.  Historic Roanoke Island Fund.

(a)        The Historic Roanoke Island Fund is established as a nonreverting enterprise fund and shall be administered by the Roanoke Island Commission.Department of Cultural Resources. All operating revenues generated by the Roanoke Island Commission, including revenues collected from any property operated by the Roanoke Island Commission, together with all gifts, grants, donations, or other financial assets of whatever kind received or held by the Roanoke Island Commission shall be credited to the Historic Roanoke Island Fund and shall be used only (i) for the expenses of operating and maintaining the Roanoke Island Commission and the properties managed by the Roanoke Island Commission, including the salaries and benefits of Roanoke Island Festival Park staff, (ii) to carry out any of the other duties and purposes set out by this Part, or (iii) for capital expenditures for the properties operated by the Commission.

(b)        The Department of Cultural Resources shall pay to the Commission transfer to the Fund on a monthly basis a pro rata share of the utilities, maintenance, and operating expenses of the Outer Banks History Center, which is located in the facility owned by the Commission.Roanoke Island Festival Park. The funds received pursuant to this subsection shall be credited to the Historic Roanoke Island Fund.

(c)        The Department of Cultural Resources shall credit to the Historic Roanoke Island Fund all rental proceeds received by the Department from the rental properties located near the Outer Banks Island Farm.

"§ 143B‑131.9.  Roanoke Island Commission Festival Park staff.

The Commission shall appoint and fix the salary of an Executive Director to serve at its pleasure and may hire other employees. Employees of the Commission who were transferred from the Department of Cultural Resources as of July 1, 1995, and who were subject to the North Carolina Human Resources Act, Chapter 126 of the General Statutes, at the time of the transfer shall continue to be subject to that act. Employees of the Commission who were transferred but were not subject to the North Carolina Human Resources Act at the time of transfer are not subject to the North Carolina Human Resources Act. Employees of the Commission who were not transferred are not subject to the North Carolina Human Resources Act unless the Commission designates the employee's position as subject to the North Carolina Human Resources Act when the employee is hired. Once designated, a position remains subject to the North Carolina Human Resources Act unless exempted in accordance with that act.shall serve as a search committee to seek out, interview, and recommend to the Secretary of the Department of Cultural Resources an Executive Director of Roanoke Island Festival Park. All employees of the Commission shall be transferred to the Department of Cultural Resources and shall be paid from the Historic Roanoke Island Fund as provided in G.S. 143B‑181.8A. Except as otherwise provided in this section, or G.S. 126-5, all employees who are transferred from the Commission to the Department of Cultural Resources shall retain the same designations under the North Carolina Human Resources Act, Chapter 126 of the General Statutes, as they had prior to the transfer.

…."

 

PART XX. DEPARTMENT OF INSURANCE

 

Insurance Regulatory Charge

SECTION 20.2.(a)  The percentage rate to be used in calculating the insurance regulatory charge under G.S. 58-6-25 is six and one‑half percent (6.5%) for the 2015 calendar year.

SECTION 20.2.(b)  G.S. 58‑6‑25 reads as rewritten:

"§ 58‑6‑25.  Insurance regulatory charge.

(d)        Use of Proceeds. – The Insurance Regulatory Fund is created in the State treasury, under the control of the Office of State Budget and Management. The proceeds of the charge levied in this section and all fees collected under Articles 69 through 71 of this Chapter and under Articles 9 and 9C of Chapter 143 of the General Statutes shall be credited to the Fund. The Fund shall be placed in an interest‑bearing account and any interest or other income derived from the Fund shall be credited to the Fund. Moneys in the Fund may be spent only pursuant to appropriation by the General Assembly and in accordance with the line item budget enacted by the General Assembly. The Fund is subject to the provisions of the Executive Budget Act, except that no unexpended surplus of the Fund shall revert to the General Fund. All money credited to the Fund shall be used to reimburse the General Fund for the following:

(11)      Money appropriated to the North Carolina Industrial Commission for support of the Commission's duties excepted from its statutory fee authority as set forth in G.S. 97‑73(e).

(e)        Definitions. – The following definitions apply in this section:

(1)        Repealed by Session Laws 2003‑284, s. 43.2, effective for taxable years beginning on or after January 1, 2004.

(1a)      Captive insurance company. – Defined in G.S. 105‑228.3.

(2)        Insurance company. – A company that pays the gross premiums tax levied in G.S. 105‑228.5 and G.S. 105‑228.8.

(3)        Insurer. – Defined in G.S. 105‑228.3."

SECTION 20.2.(c)  Subsection (a) of this section is effective when it becomes law. Subsection (b) of this section is effective January 1, 2015.

 

PART XXI. RESERVED

 

PART XXII. GENERAL ASSEMBLY

 

CREATE JOINT LEGISLATIVE COMMITTEE ON GENERAL GOVERNMENT

SECTION 22.1.(a)  Chapter 120 of the General Statutes is amended by adding a new Article to read:

"Article 34.

"Joint Legislative Oversight Committee on General Government.

"§ 120‑295.  Creation and membership of Joint Legislative Oversight Committee on General Government.

(a)        The Joint Legislative Oversight Committee on General Government is established. The Committee consists of 14 members as follows:

(1)        Seven members of the Senate appointed by the President Pro Tempore of the Senate, at least two of whom are members of the minority party; and

(2)        Seven members of the House of Representatives appointed by the Speaker of the House of Representatives, at least two of whom are members of the minority party.

(b)        Terms on the Committee are for two years and begin on the convening of the General Assembly in each odd‑numbered year. Members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee.

(c)        A member continues to serve until a successor is appointed. A vacancy shall be filled within 30 days by the officer who made the original appointment.

"§ 120‑296.  Purpose and powers of Committee.

(a)        The Joint Legislative Oversight Committee on General Government shall examine on a continuing basis the services provided by the departments and agencies set out in this subsection in order to make ongoing recommendations to the General Assembly on ways to improve the effectiveness, efficiency, and quality of State government services. The Committee has the following powers and duties:

(1)        Study the programs, organization, operations, and policies of the following agencies:

a.         Department of Administration.

b.         Department of State Auditor.

c.         Department of Cultural Resources.

d.         Housing Finance Agency.

e.         Department of Insurance.

f.          Office of Administrative Hearings.

g.         Office of State Human Resources.

h.         Department of Revenue.

i.          Department of Secretary of State.

j.          State Ethics Commission.

k.         Department of State Treasurer.

(2)        Review compliance of budget actions directed by the General Assembly.

(3)        Monitor expenditures, deviations, and changes made by the agencies set out in subsection (a) of subdivision (1) of this section to the certified budget.

(4)        Review policy changes as directed by law.

(5)        Receive presentations of reports from agencies directed in the law, including audits, studies, and other reports.

(6)        Review any issues that arise during the interim period between sessions of the General Assembly and provide a venue for any of these issues to be heard in a public setting.

(7)        Monitor the quality of services provided by general government agencies to other agencies and the public.

(8)        Identify opportunities for general government agencies to coordinate and collaborate to eliminate duplicative functions.

(9)        Have presentations and reports on any other matters that the Committee considers necessary to fulfill its mandate.

(b)        The Committee may make reports to the General Assembly. A report to the General Assembly may contain legislation needed to implement a recommendation of the Committee.

"§ 120‑297.  Organization of Committee.

(a)        The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Joint Legislative Oversight Committee on General Government. The Committee shall meet upon the joint call of the cochairs.

(b)        A quorum of the Committee is five members. No action may be taken except by a majority vote at a meeting at which a quorum is present. While in the discharge of its official duties, the Committee has the powers of a joint committee under G.S. 120‑19 and G.S. 120‑19.1 through G.S. 120‑19.4.

(c)        Members of the Committee shall receive subsistence and travel expenses as provided in G.S. 120‑3.1. The Committee may contract for consultants or hire employees in accordance with G.S. 120‑32.02. The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Committee in its work. Upon the direction of the Legislative Services Commission, the Directors of Legislative Assistants of the Senate and of the House of Representatives shall assign clerical staff to the Committee. The expenses for clerical employees shall be borne by the Committee.

(d)        The Committee cochairs may establish subcommittees for the purpose of examining issues relating to services provided by particular divisions within the State's general government departments.

"§ 120‑298.  Reports to Committee.

Whenever a department, office, or agency set out in subdivision (a)(1) of G.S. 120‑296 is required by law to report to the General Assembly or to any of its permanent committees or subcommittees on matters affecting the services the department or agency provides, the department or agency shall transmit a copy of the report to the cochairs of the Joint Legislative Oversight Committee on General Government."

SECTION 22.1.(b)  This section is effective when it becomes law.

 

Study of the Costs of Health Insurance Mandates

SECTION 22.2.(a)  The Legislative Research Commission may study the issue of existing health insurance mandates. The goal of the study would be to provide a complete picture of the overall impact of the health insurance mandates on individuals, employers, health insurance companies, the providers of health care, the General Fund, and the State economy. To that end, the study should consider the following:

(1)        The costs to individuals and employers of the health insurance mandates, including increased premiums or other cost sharing. This analysis shall include estimates of additional premium costs attributable to particular mandates.

(2)        The cost to the State for mandates that apply to the State Health Plan for Teachers and State Employees. This analysis shall include estimates of additional premium costs attributable to particular mandates.

(3)        The cost to health insurance companies of adding mandated coverage to their plans, including the costs of modifying existing plans to include new mandates.

(4)        The benefits to individuals of the health insurance mandates, including an estimate of how many individuals benefit from particular mandates and a comparison of the costs of mandated covered procedures to the costs of the procedures if coverage were not mandated.

(5)        The benefits to employers through increased productivity, less time absent from work, or other appropriate benefits from mandating the insurance coverage of particular services or treatments.

(6)        For mandates of a screening or preventative nature, a cost estimate of the savings attributable to early detection and treatment.

(7)        The benefits to providers of services mandated to be covered by health insurance.

(8)        Any other related items deemed appropriate by the Legislative Research Commission.

SECTION 22.2.(b)  The Legislative Research Commission may study the creation of a process to review the costs of proposed future health benefit mandates and make recommendations based on its study. Such a process should be designed to aid the General Assembly to better understand the complete costs and benefits of proposed health insurance mandates, both to the individual beneficiaries of the mandates and to the State's health system and economy. Such a process should be more involved than the current actuarial note process for mandates that apply to the State Health Plan for Teachers and State Employees and should consider the same items listed in the subdivisions of subsection (a) of this section for proposed future health benefit mandates.

SECTION 22.2.(c)  In order to assess the feasibility and cost of (i) the study contemplated by subsection (a) of this section and (ii) the review process contemplated by subsection (b) of this section, the Legislative Research Commission may engage the services of a contract manager to design, issue, and manage requests for information (RFIs) from experts in health insurance and economics who may be able to study health insurance mandates.

SECTION 22.2.(d)  The Legislative Research Commission may use up to the sum of five hundred thousand dollars ($500,000), which is appropriated in this act for fiscal year 2014‑2015, nonrecurring, for the studies authorized under this section and for engaging the services of a contract manager as provided in subsection (c) of this section.

 

statute of repose study commission

SECTION 22.3.(a)  There is created the Statute of Repose Study Commission.

SECTION 22.3.(b)  Membership. – The Statute of Repose Study Commission shall consist of 10 members, five members of the Senate appointed by the President Pro Tempore of the Senate and five members of the House of Representatives appointed by the Speaker of the House of Representatives.

SECTION 22.3.(c)  Cochairs; Vacancies; Quorum. – The Statute of Repose Study Commission shall have two cochairs, one designated by the President Pro Tempore of the Senate and one designated by the Speaker of the House of Representatives from among their respective appointees. The Commission shall meet upon the joint call of the cochairs. Any vacancy on the Commission shall be filled by the original appointing authority. A majority of the members of the Commission constitutes a quorum.

SECTION 22.3.(d)  Compensation; Administration. – Members of the Statute of Repose Study Commission shall receive per diem, subsistence, and travel allowances in accordance with G.S. 120‑3.1. The Commission, 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 Commission 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 Commission in its work. The House of Representatives' and the Senate's Directors of Legislative Assistants shall assign clerical staff to the Commission, and the expenses relating to the clerical employees shall be borne by the Commission.

SECTION 22.3.(e)  Purpose. – The Statute of Repose Study Commission shall study whether the 10‑year period of repose set out in G.S. 1‑52(16) should be amended, or whether other change in the laws of North Carolina should be enacted, in light of the opinion of the United States Supreme Court in CTS Corp. v. Waldburger et al., No. 13‑339 (June 9, 2014) (slip op.). The Commission shall report its findings and recommendations and any legislative proposals to the 2015 Regular Session of the General Assembly.

SECTION 22.3.(f)  Commission Termination. – The Statute of Repose Study Commission shall terminate on the filing of its report or upon the convening of the 2015 General Assembly, whichever is earlier.

SECTION 22.3.(g)  The Legislative Services Commission shall allocate monies to fund the work of the Statute of Repose Study Commission from funds available to the General Assembly.

 

PART XXII-A. OFFICE OF STATE HUMAN RESOURCES

 

discontinue use of automatic scoring and screening of applications for state government employment

SECTION 22A.1.(a)  The Office of State Human Resources (OSHR) shall discontinue, as soon as practicable, utilization of its current online job application and career portal providing automatic scoring and screening of applications for State government employment. In order to effectuate the provisions of this section, the State Chief Information Officer shall not allocate any funds to continue or renew licenses for the online job application and career portal currently utilized by OSHR.

SECTION 22A.1.(b)  Nothing in this section is intended, nor shall it be construed, to impair any valid contract relating to its subject matter.

 

Office of State Human RESOURCES/JLOCGG Review of Temporary Solutions

SECTION 22A.2.(a)  The Joint Legislative Oversight Committee on General Government (Committee) created by Section 22.1 of this act shall review the effectiveness and efficiency of the Temporary Solutions staffing service of the Office of State Human Resources (OSHR). As part of its review, the Committee shall:

(1)        Review the OSHR's administrative surcharge charged to State agencies.

(2)        Review the