GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2003
SESSION LAW 2003-284
HOUSE BILL 397
AN ACT to appropriate funds for current operations and capital improvements for state departments, institutions, and agencies, and for other purposes, and to Implement A State Budget That enables the State to Provide a sustainable recovery through strong educational and economic tools.
The General Assembly of North Carolina enacts:
PART I. INTRODUCTION AND TITLE OF ACT
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations - General Fund 2003-2004 2004-2005
EDUCATION
Community Colleges System Office 660,927,719 660,199,222
Department of Public Instruction 6,035,050,302 6,034,995,183
University of North Carolina - Board of Governors 1,792,141,661 1,822,426,657
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary 82,168,433 80,968,433
Division of Aging 27,685,838 27,685,838
Division of Blind Services/Deaf/HH 9,302,670 9,387,008
Division of Child Development 259,017,167 259,210,693
Division of Education Services 31,806,862 31,670,076
Division of Facility Services 12,256,792 12,256,792
Division of Medical Assistance 1,987,409,086 2,449,169,963
Division of Mental Health 577,290,247 580,423,098
NC Health Choice 49,484,279 55,432,822
Division of Public Health 124,177,475 123,448,895
Division of Social Services 179,178,674 189,029,268
Division of Vocational Rehabilitation 40,042,124 40,834,858
Total 3,379,819,647 3,859,517,744
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services 48,495,356 48,616,369
Department of Commerce
Commerce 33,396,542 34,336,301
Commerce State-Aid 11,272,085 11,222,085
NC Biotechnology Center 5,883,395 5,883,395
Rural Economic Development Center 4,658,607 4,658,607
Department of Environment and Natural Resources
Environment and Natural Resources 147,176,308 152,798,010
Clean Water Management Trust Fund 62,000,000 62,000,000
Department of Labor 13,265,454 13,274,104
JUSTICE AND PUBLIC SAFETY
Department of Correction 940,246,590 959,947,282
Department of Crime Control and Public Safety 28,744,326 28,139,010
Judicial Department 304,340,731 311,499,694
Judicial Department - Indigent Defense 73,264,829 71,019,451
Department of Justice 71,041,310 71,459,312
Department of Juvenile Justice and
Delinquency Prevention 130,313,473 130,585,498
GENERAL GOVERNMENT
Department of Administration 52,055,520 52,583,907
Office of Administrative Hearings 2,409,683 2,411,797
Department of State Auditor 10,293,801 10,293,801
Office of State Controller 9,694,464 9,719,451
Department of Cultural Resources
Cultural Resources 55,227,767 54,088,598
Roanoke Island Commission 1,634,905 1,636,559
State Board of Elections 6,837,797 4,915,939
General Assembly 41,561,463 44,971,305
Office of the Governor
Office of the Governor 4,976,503 4,826,503
Office of State Budget and Management 4,211,805 4,216,110
OSBM - Reserve for Special Appropriations 3,380,000 3,130,000
Housing Finance Agency 4,750,945 4,750,945
Department of Insurance
Insurance 26,307,054 23,187,587
Insurance - Volunteer Safety Workers' Compensation 4,500,000 2,600,000
Office of Lieutenant Governor 601,722 601,722
Department of Revenue 74,930,766 75,174,094
Rules Review Commission 310,454 310,454
Department of Secretary of State 8,057,198 7,756,198
Department of State Treasurer
State Treasurer 7,575,029 7,577,784
State Treasurer - Retirement for Fire and
Rescue Squad Workers 7,481,179 7,481,179
TRANSPORTATION
Department of Transportation 11,429,525 11,402,800
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Reserve for Compensation Increases 132,050,000 45,550,000
Reserve for State Health Plan 113,418,000 151,225,000
Reserve for Retiree Health Benefits 36,800,000 36,800,000
Reserve for Teachers' and State Employees'
Retirement Contribution 26,546,000 154,200,000
Reserve for Transfer of Various Benefit Plans (55,000,000) (13,000,000)
Contingency and Emergency 5,000,000 5,000,000
Reserve for Salary Adjustments 4,500,000 4,500,000
Mental Health, Developmental Disabilities and
Substance Abuse Services Trust Fund 12,500,000 0
Reserve to Implement HIPPA 2,000,000 0
State Surplus Real Property System 250,000 0
Blue Ribbon Commission on Medicaid Reform 250,000 0
Debt Service
General Debt Service 387,785,920 503,682,683
Federal Reimbursement 1,155,948 1,155,948
TOTAL CURRENT OPERATIONS -
GENERAL FUND 14,747,521,783 15,505,328,288
GENERAL FUND AVAILABILITY STATEMENT
FY 2003-2004 FY 2004-2005
Unappropriated Balance Remaining
from FY 2002-2003 103,885 163,383,597
Beginning Credit Balance 409,159,298 0
Credit to Savings Reserve Account (150,000,000) 0
Credit to Repairs & Renovations
Reserve Account (15,000,000) 0
Beginning Unreserved Credit Balance 244,159,298 0
Revenues Based on Existing Tax Structure 13,028,600,000 13,766,160,000
Nontax Revenues
Investment Income 113,900,000 119,690,000
Judicial Fees 137,520,000 144,430,000
Disproportionate Share 100,000,000 100,000,000
Insurance 51,900,000 53,900,000
Other Nontax Revenues 116,050,000 120,100,000
Highway Trust Fund/Use Tax
Reimbursement Transfer 252,422,125 242,586,830
Highway Fund Transfer 16,379,000 16,166,400
Subtotal Nontax Revenues 788,171,125 796,873,230
Total General Fund Availability 14,061,034,308 14,726,416,827
Adjustments to Availability: 2003 Session
Maintain Sales Tax Rate at 4.5% 341,750,000 388,200,000
Maintain Top Income Tax Bracket at 8.25% 37,500,000 92,700,000
Conform to Federal Definition of Child for
State Child Tax Credit 16,800,000 17,000,000
Equalize Insurance Tax Rate on
Article 65 Corporations 18,600,000 13,900,000
Conform to Streamline Sales Tax Provision (Soft 44,050,000 47,600,000
Drinks, Prepared Food & Modified Software)
Tax Soft Drinks in Vending Machines at
50% of General Rate (4,050,000) (8,600,000)
Restore Use Tax Line on Individual Returns 3,100,000 3,100,000
Revenue: Project Tax Collect 50,000,000 50,000,000
Revenue: Project Compliance 40,204,537 76,116,865
Divert MSA Settlement Proceeds from
Tobacco Trust Fund 40,000,000 40,000,000
Divert MSA Settlement Proceeds from
Health & Wellness Trust Fund 25,000,000 25,000,000
Divert Additional Proceeds from MSA 1,800,000 0
Discontinue Tobacco Discounts 1,741,667 1,900,000
Discontinue Alcohol Discounts 3,666,667 4,000,000
Fee Increases 5,710,281 5,778,569
Attorney General Settlement Funds 10,000,000 0
Reserve for Special Funds Transfer 20,000,000 20,000,000
Divert Proceeds from 911 Fund 33,000,000 25,000,000
Sale of Surplus Real Property 10,000,000 30,000,000
Federal Relief Package (Grants to States) 136,859,298 0
Hurricane Floyd Disaster Relief Funds 108,796,845 0
Adjust Transfer from Insurance Regulatory Fund 2,942,777 (207,827)
Tax Reductions for Federal Conformity (70,000,000) 0
Subtotal Adjustments to Availability: 2003 Session 877,472,072 831,487,607
Revised General Fund Availability 14,938,506,380 15,557,904,434
Less: Total General Fund Appropriations (14,775,122,783) (15,505,328,288)
Unappropriated Balance Remaining 163,383,597 52,576,146
SECTION 2.2.(c) Notwithstanding G.S. 143-16.4(a1), of the funds credited to the Health Trust Account from the Master Settlement Agreement pursuant to Section 6(2) of S.L. 1999-2 during the 2003-2004 and 2004-2005 fiscal years, the sum of twenty million dollars ($20,000,000) that would otherwise be deposited in the Fund Reserve established by G.S. 147-86.30(c) and five million ($5,000,000) of the funds that are not reserved pursuant to G.S. 147-86.30(c) shall be transferred from the Department of State Treasurer, Budget Code 23460 (Health and Wellness Trust Fund), to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2003-2004 and 2004-2005 fiscal years.
SECTION 2.2.(h) Notwithstanding the provisions of G.S. 62A-22(c), 62A-24(d), 62A-25, and 62A-26, the following shall be transferred from Wireless Fund created in G.S. 62A-22(c) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2003-2005 fiscal biennium: (i) all service charges remitted to the Wireless Fund during the 2003-2004 fiscal year; and (ii) the sum of twenty-five million dollars ($25,000,000) from the services charges remitted to the Wireless Fund during the 2004-2005 fiscal year.
In addition to the transfer authorized under G.S. 105-187.9(b)(2), and notwithstanding Section 26.14 of S.L. 2002-126 and G.S. 105-187.9(b)(1), the sum to be transferred to the General Fund for fiscal year 2003-2004 is two hundred fifty million dollars ($250,000,000) and for fiscal year 2004-2005 is two hundred forty million dollars ($240,000,000).
SECTION 2.2.(k) Effective June 30, 2003, notwithstanding G.S. 143-16.4(a1) and G.S. 143-16.4(a2), of the funds credited to the Tobacco Trust Account and Health Trust Account from the Master Settlement Agreement pursuant to Section 6(2) of S.L. 1999-2, the sum of one million eight hundred thousand dollars ($1,800,000) which the State will receive from a settlement involving cigarettes that Brown & Williamson contract manufactured for Star Tobacco, Inc. and Star Scientific, Inc. during the years 1999 through 2002 shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2003-2004 fiscal year.
PART III. CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
Current Operations - Highway Fund 2003-2004 2004-2005
(1) Transportation Admin. (84210) $72,776,692 $72,898,916
(2) Transportation Operations (84220) 28,190,393 28,150,605
(3) Transportation Programs (84230)
State Construction
Secondary 89,600,000 90,590,000
Urban 28,000,000 14,000,000
Public Access 2,000,000 2,000,000
Spot Safety 9,100,000 9,100,000
Contingency 15,000,000 10,000,000
Federal Aid Match 4,160,000 4,280,000
Maintenance 582,507,482 573,436,154
Asphalt Plant/OSHA 425,000 425,000
Capital - -
Ferry Operations 19,677,283 19,677,283
Aid to Municipalities 89,600,000 90,590,000
Rail 15,090,919 15,531,153
Public Transit 79,705,266 80,302,926
(4) Governor's Highway Safety (84240) 292,449 293,118
(5) Transportation Regulation (84260) 102,032,933 102,896,913
(6) Reserves, Transfers, Other Agencies (84270) 214,626,257 217,352,347
TOTAL $1,352,784,674 $1,331,524,415
HIGHWAY FUND AVAILABILITY STATEMENT
Highway Fund Budget Reform Statement 2003-2004 2004-2005
Beginning Credit Balance - -
Estimated Revenue $ 1,352,784,674 $ 1,375,848,337
Estimated Reversions - -
Total Highway Fund Availability $ 1,352,784,674 $ 1,375,848,337
PART IV. HIGHWAY TRUST FUND APPROPRIATIONS
HIGHWAY TRUST FUND APPROPRIATIONS
Current Operations - Highway Trust Fund 2003-2004 2004-2005
Intrastate System $422,754,783 $452,665,225
Urban Loops 170,944,428 183,038,965
Aid to Municipalities 44,356,838 47,495,141
Total for Secondary Roads 79,559,266 83,648,141
Program Administration 40,001,560 39,636,698
Transfer to General Fund 252,422,125 242,586,830
GRAND TOTAL CURRENT OPERATIONS
AND EXPANSION $ 1,010,039,000 $ 1,049,071,000
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2004, according to the following schedule:
COMMUNITY SERVICES BLOCK GRANT
01. Community Action Agencies $ 15,266,973
02. Limited Purpose Agencies 848,165
03. Department of Health and Human Services
to administer and monitor
the activities of the
Community Services Block Grant 848,165
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 16,963,303
SOCIAL SERVICES BLOCK GRANT
01. County departments of social services $ 28,868,189
(Transfer from TANF - $4,500,000)
02. Allocation for in-home services provided
by county departments of
social services 2,101,113
03. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 3,234,601
04. Division of Services for the Blind 3,105,711
05. Division of Facility Services 426,836
06. Division of Aging - Home and Community
Care Block Grant 1,840,234
07. Child Care Subsidies 3,000,000
08. Division of Vocational Rehabilitation -
United Cerebral Palsy 71,484
09. State administration 1,693,368
10. Child Medical Evaluation Program 238,321
11. Adult day care services 2,155,301
12. Comprehensive Treatment Services
Program 422,003
13. Department of Administration
for the N.C. State Commission of Indian Affairs
In-Home Services Program for the Elderly 203,198
14. Division of Vocational Rehabilitation Services -
Easter Seals Society 116,779
15. UNC-CH CARES Program for training and
consultation services 247,920
16. Office of the Secretary - Office of Economic
Opportunity for N.C. Senior Citizens'
Federation for outreach services to
low-income elderly persons 41,302
17. Division of Social Services - Child
Caring Agencies 1,500,000
18. Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services - Developmentally
Disabled Waiting List for services 5,000,000
19. Transfer to Preventive Health Services Block
Grant for HIV/AIDS education, counseling, and
testing 145,819
20. Division of Facility Services -
Mental Health Licensure 213,128
21. Transfer to the Office of the Secretary -
N.C. Inter-Agency Council for Coordinating
Homeless Programs 150,000
TOTAL SOCIAL SERVICES BLOCK GRANT $ 54,775,307
LOW-INCOME ENERGY BLOCK GRANT
01. Energy Assistance Programs $ 12,775,323
02. Crisis Intervention 9,192,927
03. Administration 2,957,339
04. Weatherization Program 4,212,740
05. Department of Administration -
N.C. State Commission of Indian Affairs 54,840
06. Heating Air Repair and Replacement Program 1,966,153
TOTAL LOW-INCOME ENERGY BLOCK GRANT $ 31,159,322
MENTAL HEALTH SERVICES BLOCK GRANT
01. Provision of community-based
services for severe and persistently
mentally ill adults $ 5,657,798
02. Provision of community-based
services to children 2,513,141
03. Comprehensive Treatment Services
Program for Children 1,500,000
04. Administration 568,911
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 10,239,850
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
01. Provision of community-based
alcohol and drug abuse services,
tuberculosis services, and services
provided by the Alcohol and Drug Abuse
Treatment Centers $ 18,901,711
02. Continuation of services for
pregnant women and women
with dependent children 8,069,524
03. Continuation of services to
IV drug abusers and others at risk
for HIV diseases 4,616,378
04. Provision of services to children
and adolescents 7,740,611
05. Juvenile Services - Family Focus 851,156
06. Allocation to the Division of Public Health
for HIV/STD Risk Reduction Projects 383,980
07. Allocation to the Division of Public Health
for HIV/STD Prevention by County Health
Departments 209,576
08. Allocation to the Division of Public Health
for the Maternal and Child Health Hotline 37,779
09. Administration 2,596,307
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 43,407,022
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
01. Child care subsidies $154,713,475
02. Quality and availability initiatives 16,449,256
03. Administrative expenses 6,969,533
04. Transfer from TANF Block Grant for
child care subsidies 79,562,189
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $257,694,453
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
01. Work First Cash Assistance $129,396,275
02. Work First County Block Grants 94,653,315
03. Transfer to the Child Care and
Development Fund Block Grant
for child care subsidies 79,562,189
04. Child Care Subsidies for TANF Recipients 26,621,241
05. Child Welfare Workers for local DSS 11,452,391
06. Transfer to Social Services Block Grant for
County Departments of Social Services for
Children's Services 4,500,000
07. Support Our Students - Department of
Juvenile Justice and Delinquency
Prevention 2,249,642
08. Residential Substance Abuse Services
for Women With Children 2,000,000
09. Domestic Violence Services
for Work First Families 1,200,000
10. After-School Services for
At-Risk Children 2,249,642
YWCA Central Carolinas
Youth Development Programs $176,000
11. Division of Social Services -
Administration 400,000
12. Child Welfare Training 2,550,000
13. TANF Automation Projects 592,500
14. Work First/Boys and Girls Clubs 1,000,000
15. Work Central Career Advancement Center 550,000
16. WCH-Teen Pregnancy Prevention 1,500,000
17. Transfer to Social Services Block Grant for Child Caring
Institutions 1,500,000
18. Special Children's Adoption Fund 2,000,000
19. NC Fast Implementation 630,000
20. Maternity Homes 838,000
21. Pregnancy Prevention Coalition of North Carolina 127,500
22. Individual Development Accounts 180,000
23. Reduction of Out-of-Wedlock Births 1,000,000
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $366,752,695
MATERNAL AND CHILD HEALTH BLOCK GRANT
01. Healthy Mothers/Healthy Children
Block Grants to Local Health
Departments 9,838,074
02. High-Risk Maternity Clinic Services,
Perinatal Education and Training,
Childhood Injury Prevention,
Public Information and Education, and
Technical Assistance to Local Health
Departments 2,307,918
03. Services to Children With Special Health
Care Needs 5,078,647
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 17,224,639
PREVENTIVE HEALTH SERVICES BLOCK GRANT
01. Statewide Health Promotion Programs $3,132,810
02. Rape Crisis/Victims' Services
Program - Council for Women 197,112
03. Transfer from Social Services
Block Grant - HIV/AIDS education,
counseling, and testing 145,819
04. Office of Minority Health 159,459
05. Administrative Costs 108,546
06. Osteoporosis Task Force Activities 150,000
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $3,893,746
SECTION 5.1.(b) Decreases in Federal Fund Availability. - If the United States Congress reduces federal fund availability in the Social Services Block Grant below the amounts appropriated in this section, then the Department of Health and Human Services shall allocate these decreases giving priority first to those direct services mandated by State or federal law, then to those programs providing direct services that have demonstrated effectiveness in meeting the federally and State-mandated services goals established for the Social Services Block Grant. The Department shall not include transfers from TANF for specified purposes in any calculations of reductions to the Social Services Block Grant.
If the United States Congress reduces the amount of TANF funds below the amounts appropriated in this section after the effective date of this act, then the Department shall allocate the decrease in funds after considering any underutilization of the budget and the effectiveness of the current level of services. Any TANF Block Grant fund changes shall be reported 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.
Decreases in federal fund availability shall be allocated for the Maternal and Child Health and Preventive Health Services federal block grants by the Department of Health and Human Services after considering the effectiveness of the current level of services.
SECTION 5.1.(c) Increases in Federal Fund Availability. - Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended by the Department of Health and Human Services, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.
SECTION 5.1.(d) Changes to the budgeted allocations to the block grants appropriated in this act and new allocations from the block grants not specified in this act shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to the change and shall be reported immediately 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.
SECTION 5.1.(e) The Department of Health and Human Services may allow no-cost contract extensions for up to six months for nongovernmental grant recipients under the TANF Block Grant.
SECTION 5.1.(f) 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 2003-2004 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an Abstinence Until Marriage Education Program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C-81(e1)(4). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.
The Department of Health and Human Services shall contract for the follow-up testing involved with the Newborn Screening Program. The Department may contract for these services with an entity within or outside of the State; however, the Department may only contract with an out-of-state entity if it can be demonstrated that there is a cost savings associated with contracting with the out-of-state entity. The contract amount shall not exceed twenty-five thousand dollars ($25,000). The amount of the contract shall be covered by funds in the Maternal and Child Health Block Grant.
SECTION 5.1.(g) The sum of four hundred thousand dollars ($400,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant shall be used to develop and implement a Medical Child Care Pilot open to children throughout the State.
SECTION 5.1.(h) Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 5.1.(i) The sum of four hundred thousand dollars ($400,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2003-2004 fiscal year shall be used to support administration of TANF-funded programs.
SECTION 5.1.(j) The sum of two million dollars ($2,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2003-2004 fiscal year shall be used to provide regional residential substance abuse treatment and services for women with children. The Department of Health and Human Services, Division of Social Services and Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, in consultation with local departments of social services, area mental health programs, and other State and local agencies or organizations, shall coordinate this effort in order to facilitate the expansion of regionally based substance abuse services for women with children. These services shall be culturally appropriate and designed for the unique needs of TANF women with children.
In order to expedite the expansion of these services, the Secretary of the Department of Health and Human Services may enter into contracts with service providers.
The Department of Health and Human Services, Division of Social Services and Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall report on its progress in complying with this subsection no later than October 1, 2003, and March 1, 2004, 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. These reports shall include all of the following:
(1) The number and location of additional beds created.
(2) The types of facilities established.
(3) The delineation of roles and responsibilities at the State and local levels.
(4) Demographics of the women served, the number of women served, and the cost per client.
(5) Demographics of the children served, the number of children served, and the services provided.
(6) Job placement services provided to women.
(7) A plan for follow-up and evaluation of services provided with an emphasis on outcomes.
(8) Barriers identified to the successful implementation of the expansion.
(9) Identification of other resources needed to appropriately and efficiently provide services to Work First recipients.
(10) Other information as requested.
SECTION 5.1.(k) The sum of two million two hundred forty-nine thousand six hundred forty-two dollars ($2,249,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2003-2004 fiscal year shall be used to support the existing Support Our Students Program and to expand the Program statewide, focusing on low-income communities in unserved areas. These funds shall not be used for administration of the Program.
SECTION 5.1.(l) The sum of one million two hundred thousand dollars ($1,200,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2003-2004 fiscal year shall be used to provide domestic violence services to Work First recipients. These funds shall be used to provide domestic violence counseling, support, and other direct services to clients. These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts. The Division of Social Services may use up to seventy-five thousand dollars ($75,000) in TANF funds to establish one administrative position within the Division of Social Services to implement this subsection.
Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2003. The Division of Social Services, in consultation with the Council for Women, shall review the county plans and shall provide consultation and technical assistance to the departments of social services and local domestic violence shelter programs, if needed.
The Division of Social Services shall allocate these funds to county departments of social services according to the following formula: (i) each county shall receive a base allocation of five thousand dollars ($5,000) and (ii) each county shall receive an allocation of the remaining funds based on the county's proportion of the statewide total of the Work First caseload as of July 1, 2003, and the county's proportion of the statewide total of the individuals receiving domestic violence services from programs funded by the Council for Women as of July 1, 2003. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
The Department of Health and Human Services shall report on the uses of these funds no later than March 1, 2004, 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.
SECTION 5.1.(m) The sum of two million two hundred forty-nine thousand six hundred forty-two dollars ($2,249,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used to expand after-school programs and services for at-risk children. The Department shall develop and implement a grant program to award grants to community-based programs that demonstrate the ability to reach children at risk of teen pregnancy and school dropout. The Department shall award grants to community-based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to establish one position within the Division of Social Services to coordinate at-risk after-school programs and shall not be used for other State administration. The Department shall report no later than March 1, 2004, on its progress in complying with this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(n) The sum of eleven million four hundred fifty-two thousand three hundred ninety-one dollars ($11,452,391) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2003-2004 fiscal year for Child Welfare Improvements shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and post-adoption services for eligible families.
SECTION 5.1.(o) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the Mental Health Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2003-2004 fiscal year and the sum of four hundred twenty-two thousand three dollars ($422,003) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2003-2004 fiscal year shall be used to continue a Comprehensive Treatment Services Program for Children in accordance with Section 21.60 of S.L. 2001-424, as amended.
SECTION 5.1.(p) The sum of one million six hundred thousand dollars ($1,600,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for fiscal year 2003-2004 shall be used to support various child welfare training projects as follows:
(1) Provide a regional training center in southeastern North Carolina.
(2) Support the Masters Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.
(3) Provide training for residential child care facilities.
(4) Provide for various other child welfare training initiatives.
SECTION 5.1.(q) 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.
SECTION 5.1.(r) The sum of eight hundred thirty-eight thousand dollars ($838,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services shall be used to purchase services at maternity homes throughout the State.
SECTION 5.1.(s) The sum of two million dollars ($2,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2003-2004 fiscal year shall be used to implement this subsection. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A-50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.
SECTION 5.1.(t) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this act in the TANF Block Grant and transferred to the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for child caring agencies for the 2003-2004 fiscal year shall be allocated to the State Private Child Caring Agencies Fund. These funds shall be combined with all other funds allocated to the State Private Child Caring Agencies Fund for the reimbursement of the State's portion of the cost of care for the placement of certain children by the county departments of social services who are not eligible for federal IV-E funds. These funds shall not be used to match other federal funds.
SECTION 5.1.(u) The sum of one million dollars ($1,000,000) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for Boys and Girls Clubs shall be used to make grants for approved programs. The Department of Health and Human Services, in accordance with federal regulations for the use of TANF Block Grant funds, shall administer a grant program to award funds to the Boys and Girls Clubs across the State in order to implement programs that improve the motivation, performance, and self-esteem of youths and to implement other initiatives that would be expected to reduce school dropout and teen pregnancy rates. The Department shall encourage and facilitate collaboration between the Boys and Girls Clubs and Support Our Students, Communities in Schools, and similar programs to submit joint applications for the funds if appropriate.
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $1,000,000
02. Urgent Needs and Contingency 50,000
03. Scattered Site Housing 13,200,000
04. Economic Development 10,960,000
05. Community Revitalization 12,200,000
06. State Technical Assistance 450,000
07. Housing Development 2,000,000
08. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT - 2004 Program Year $45,000,000
SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS, AND AUTHORIZATION FOR EXPENDITURES
Funds that become available from overrealized receipts in General Fund Codes and Highway Fund Codes may be used for new permanent employee positions or to raise the salary of existing employees only as follows:
(1) As provided in G.S. 116-30.1, 116-30.2, 116-30.3, 116-30.4; or
(2) If the Director of the Budget finds that the new permanent employee positions are necessary to maintain the function that generated the receipts at the level anticipated in the certified budget codes for that Fund. The Director of the Budget shall notify the President Pro Tempore of the Senate, the Speakers of the House of Representatives, the Chairs of the Appropriations Committees of the Senate and the House of Representatives, and the Fiscal Research Division of the Legislative Services Office that he intends to make such a finding at least 10 days before he makes the finding. The notification shall set out the reason the positions are necessary to maintain the function.
The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter the General Fund Codes or Highway Fund Codes that did not result in a corresponding reduced allotment from appropriations from that Fund.
This section shall expire June 30, 2004.
NO EXPENDITURE OF UNBUDGETED RECEIPTS
SECTION 6.2. Effective July 1, 2004, G.S. 143-27 reads as rewritten:
"§ 143-27. Appropriations to educational, charitable and correctional institutions are in addition to receipts by them.
All appropriations now or hereafter made to the educational
institutions, and to the charitable and correctional institutions, and to such
other departments and agencies of the State as receive moneys available for
expenditure by them are declared to be in addition to such receipts of said
institutions, departments or agencies, and are to be available as and to the
extent that such receipts are insufficient to meet the costs anticipated in the
budget authorized by the General Assembly, of maintenance of such institutions,
departments, and agencies; Provided, however, that if the receipts, other than
gifts and grants that are unanticipated and are for a specific purpose only,
collected in a fiscal year by an institution, department, or agency exceed the
receipts certified for it in General Fund Codes, Highway Fund Codes, or
Wildlife Fund Codes, the Director of the Budget shall decrease the amount he
allots to that institution, department, or agency from appropriations from that
Fund by the amount of the excess, unless the Director of the Budget has
consulted with the Joint Legislative Commission on Governmental Operations and
unless the Director of the Budget finds that (i) the appropriations from that
Fund are necessary to maintain the function that generated the receipts at the
level anticipated in the certified Budget Codes for that Fund and (ii) the
funds may be expended in accordance with G.S. 143-23.excess.
Notwithstanding the foregoing provisions of this section, receipts within The
University of North Carolina realized in excess of budgeted levels shall be
available, up to a maximum of ten percent (10%) above budgeted levels, for each
Budget Code, in addition to appropriations, to support the operations
generating such receipts, as approved by the Director of the Budget.
The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter on expenditures of receipts in excess of the amounts certified in General Fund Codes, Highway Fund Codes, or Wildlife Fund Codes, that did not result in a corresponding reduced allotment from appropriations from that Fund."
BUDGET DIRECTOR TO REVIEW PRACTICES
SECTION 6.2A.(a) The Office of State Budget and Management, in consultation with the State Controller, shall conduct a review and evaluation of current practices relative to the following issues:
(1) The proliferation of nonreverting funds and accounts.
(2) The designation of selected funds as "off-budget".
(3) The sources of authority, consistent with Article V, Section 7(1) of the Constitution, under which expenditures are being made from each special fund, trust fund, internal service fund, or enterprise fund.
(4) The proper classification and management of funds as special funds, trust funds, internal service funds, or enterprise funds consistent with criteria adopted by the Governmental Accounting Standards Board.
(5) Appropriate budget planning within special funds, trust funds, internal service funds, and enterprise funds, including, in particular, the accurate projection of receipts, expenditures, and fund balances and the presentation of that information for legislative review and appropriation action.
(6) The administration of G.S. 143-27, which requires in part that the over collection of departmental receipts be accompanied by a corresponding reduction in the allotments to institutions, departments, and agencies.
SECTION 6.3.(a) The Office of State Budget and Management shall determine and prepare for each General Fund budget code such adjustments as may be necessary to re-budget line items to reflect historical spending patterns and anticipated revenues based on actual collections and to provide for more accurate budgeting of salaries.
SECTION 6.3.(b) The Office of State Budget and Management shall report the necessary adjustments to the General Assembly no later than 10 days after the convening of the 2004 Regular Session of the 2003 General Assembly. The Director of the Budget shall include the adjustments prepared in accordance with subsection (a) of this section in the recommended adjustments to the authorized budget for the 2004-2005 fiscal year.
CONTINGENCY AND EMERGENCY FUND ALLOCATIONS
(1) Up to two million dollars ($2,000,000) for the 2003-2004 fiscal year may be used for purposes related to the Base Realignment and Closure Act (BRAC); and
(2) Up to two hundred fifty thousand dollars ($250,000) for the 2003-2004 fiscal year may be expended for statutory purposes other than those set out in G.S. 143-23(a1)(2) or in subdivision (1) of this section.
The remainder of these funds shall be expended only for the purposes outlined in G.S. 143-23(a1)(2).
CHANGE EFFECTIVE DATE - PRIVATE PLATES ON PUBLIC VEHICLES
SECTION 6.5.(a) The introductory language to Section 6.14(b) of S.L. 2001-424 reads as rewritten:
"SECTION 6.14.(b) Effective October 1, 2003,
2004, G.S. 20-39.1(b), as enacted in subsection (a) of this section,
reads as rewritten:".
SECTION 6.5.(b) Section 6.14(h) of S.L. 2001-424 reads as rewritten:
"SECTION 6.14.(h) Subsection (b) of this
section becomes effective October 1, 2003. 2004. Except as
provided in subsection (c) of this section, the remainder of this section is
effective when it becomes law."
SECTION 6.6. Funds in the amount of two million dollars ($2,000,000) are appropriated in this act to the Reserve to Implement HIPAA. This reserve shall be located in the Office of State Budget and Management.
SECTION 6.7.(a) The Governor or the Governor's designee shall coordinate the State's implementation of the federal Health Insurance Portability and Accountability Act ("HIPAA"), Title II Subtitle F (Administrative Simplification). Specifically, the scope of coordination shall include the following:
(1) Coordinating correspondence between the State and the United States government on all matters relating to HIPAA Administrative Simplification requirements under Subtitle F of Title II of HIPAA.
(2) Coordinating official State comments on proposed federal regulations and the federal rule-making process pertaining to HIPAA Administrative Simplification.
(3) Obtaining from the North Carolina Attorney General legal interpretations of federal rules pertaining to HIPAA Administrative Simplification compliance, implementation, and enforcement.
(4) Establishing deadlines and benchmarks for State agencies to provide the necessary data required to monitor compliance with HIPAA Administrative Simplification requirements.
The Information Resource Management Commission ("IRMC") shall cooperate with the Governor to ensure that IRMC policies and activities and State HIPAA implementation are complementary to ensure effective and efficient monitoring of HIPAA Administrative Simplification requirements.
SECTION 6.7.(b) The University of North Carolina System and the Teachers' and State Employees' Comprehensive Major Medical Plan may develop and implement HIPAA Administrative Simplification compliance and shall report bimonthly to the Governor on the status of implementation.
SECTION 6.7.(c) Funds appropriated to the Reserve to Implement HIPAA that are unexpended and unencumbered at the end of the fiscal year shall not revert to the General Fund but shall remain in the Reserve for use in accordance with the purposes of the Reserve.
STATE-OWNED SURPLUS REAL PROPERTY SYSTEM
(1) Review the current inventory of State-owned land and buildings for accuracy and completeness.
(2) Determine how and when State-owned land and buildings should be declared surplus.
(3) Develop criteria to be considered prior to the disposal of any property under the system. The criteria shall include all of the following factors:
a. The condition of the property;
b. The extent to which it meets the purpose for which it was intended;
c. The future needs of the Agency to perform the service intended at the location;
d. The best and most cost-effective manner in which these future needs can be serviced;
e. The practicability of moving the function of the services performed at a location to another area that might reduce acquisition, construction, and labor cost without diminishing the quality of service;
f. A recommendation as to whether a respective property should be (i) sold or retained, (ii) renovated, (iii) expanded for future use, or (iv) sold with a leaseback for a period of not more than 10 years in order to allow transition; and
g. Other recommendations regarding use of the property.
(3) Determine whether the highest and best use is being made of the State-owned property.
(4) Determine whether State agencies have the authority to retain funds from the disposal of State-owned surplus real property and whether this is consistent among agencies and conducive to the disposal of unneeded property.
(5) Consider the use of private real estate brokers, auction, and any other method determined to be suitable in order to efficiently and effectively dispose of State-owned surplus real property.
(6) Review the real property held by a selected number of State agencies to determine whether the agency has any property that meets the criteria as set forth in this section.
(7) Assess the need for additional staff to effectively administer the system.
(8) Examine current State law to assess the need for changes in order to support a uniform system to identify, evaluate, and dispose of all unused or underused State-owned land and buildings.
(1) Four members appointed by the Speaker of the House of Representatives, including one member who shall be designated as House cochair. Of the members appointed, one shall be knowledgeable in the field of real estate/appraisal, one shall be knowledgeable in the field of engineering, one shall be knowledgeable in the field of investment properties, and one shall be knowledgeable in the field of finance.
(2) Four members appointed by the President Pro Tempore of the Senate, including one member who shall be designated as Senate cochair. Of the members appointed, one shall be knowledgeable in the field of real estate/appraisal, one shall be knowledgeable in the field of engineering, one shall be knowledgeable in the field of investment properties, and one shall be knowledgeable in the field of finance.
(3) Four members appointed by the Governor. Of the members appointed, one shall be knowledgeable in the field of real estate/appraisal, one shall be knowledgeable in the field of engineering, one shall be knowledgeable in the field of investment properties, and one shall be knowledgeable in the field of finance.
The Advisory Council shall meet upon the call of the cochairs.
Members of the Advisory Council shall serve for a term of two years beginning July 1, 2003, and shall receive subsistence and travel expenses as provided in G.S. 138-5. Staff support to the Advisory Council shall be provided by the Department of Administration.
SECTION 6.8.(e) Consultants May Be Retained. - The Department may retain consultants to assist the accomplishment of the objectives set forth in subsection (a) of this section.
SECTION 6.8.(f) Study Sale and Lease-Back Potential of State-Owned Property. - As part of developing the State-owned surplus real property disposal system mandated by this section, the Department of Administration shall also review the highest and best use of state-owned property and determine if less expensive alternative sites should be acquired for State use and the former sites sold or marketed by sale and leaseback until the alternative site is ready for use. The Department shall include its findings and recommendations in the reports to the Joint Legislative Commission on Governmental Operations required by this section.
GOVERNMENT AGENCIES TO USE PRODUCTS OF RECYCLED STEEL
SECTION 6.10.(a) G.S. 130A-309.14 is amended by adding a new subsection to read:
"(l) Any State agency or agency of a political subdivision of the State that is using State funds, or any person contracting with any agency with respect to work performed under contract, shall procure products of recycled steel if all of the following conditions are satisfied:
(1) The product must be acquired competitively within a reasonable time frame.
(2) The product must meet appropriate performance standards.
(3) The product must be acquired at a reasonable price."
SECTION 6.10.(b) The Department of Administration shall report to the Joint Legislative Commission on Governmental Operations on agencies' compliance with this section.
JOINT COMMITTEE ON EXECUTIVE BUDGET ACT REVISIONS
SECTION 6.12.(a) There is created a Joint Committee on Executive Budget Act Revisions. The Committee shall be composed of 8 members, four of whom shall be Representatives who are members of the Appropriations Committee appointed by the Speaker of the House of Representatives and four of whom shall be Senators who are members of the Appropriations Committee appointed by the President Pro Tempore of the Senate. The Speaker of the House of Representatives shall designate one member as cochair and the President Pro Tempore of the Senate shall designate one member as cochair. The Committee shall meet upon call of the cochairs.
SECTION 6.12.(b) The Committee shall consider contemporary financial management practices in reviewing the current budget process. The Committee shall recommend any changes to the Executive Budget Act that are needed to modernize and improve the processes of budget preparation, budget adoption, budget execution, and program evaluation. The Committee shall report its recommendations to the 2003 General Assembly on or before April 1, 2004.
SECTION 6.12.(c) The Legislative Services Office shall assign professional and clerical staff to assist the Committee in its work. Members of the Committee shall receive per diem, subsistence, and travel allowances in accordance with G.S. 120-3.1, 138-5, or 138-6, as appropriate.
ISSUE REQUEST FOR INFORMATION/ENERGY MANAGEMENT
SECTION 6.13. The Department of Administration (Department) shall issue a Request for Information (RFI) to identify companies interested in providing, and qualified to provide, comprehensive energy management services to State departments, agencies, and institutions. The Department shall evaluate information collected through the RFI to determine the:
(1) Number of qualified companies interested in doing energy management business with State government.
(2) Types of energy management services available and applicable to State-owned facilities.
(3) Long-term cost savings potentially available to the State from the implementation of various energy management services.
(4) Modifications to State law or regulations that may be necessary to acquire and utilize successfully energy management services.
By May 1, 2004, the Department shall report its findings, conclusions, and recommendations to the Chairs of the Senate and House of Representatives Appropriations Committees.
BLUE RIBBON COMMISSION ON MEDICAID REFORM
SECTION 6.14A.(a) There is established the North Carolina Blue Ribbon Commission on Medicaid Reform (Commission). The Commission shall examine the State's Medicaid program and make comprehensive recommendations for fundamental reform. The Commission shall consider:
(1) Methods to responsibly restrain the growth in Medicaid spending.
(2) Best practices in both the public and private sectors in managing and administering health care.
(3) Options for maximizing existing resources while controlling Medicaid program costs.
(4) Current array of services available within the State Medicaid program to determine the appropriateness of the type, frequency, and duration of those services.
(5) Opportunities for long-term, systemic change in the Medicaid program through the use of federal waivers and other management tools.
(6) How to minimize the State and county share of Medicaid costs and maximize federal participation in Medicaid programs.
(7) The role of Medicaid in the State's economy.
(8) Any other matter relating to reform of the State Medicaid program.
SECTION 6.14A.(b) The Commission shall consist of 12 members appointed as follows:
(1) Six members appointed by the Speaker of the House of Representatives, including one member who shall be designated as House Cochair. No more than three may be legislators.
(2) Six members appointed by the President Pro Tempore of the Senate, including one member who shall be designated as Senate Cochair. No more than three may be legislators.
The appointing officer shall fill vacancies. The Commission shall meet at the call of the Cochairs. Members of the Commission shall receive per diem, subsistence, and travel expenses as provided in G.S. 120-3.1, 138-5, or 138-6, as appropriate. The Commission may contract for consultant services as provided in G.S. 120-32.02. Upon approval of the Legislative Services Commission, the Legislative Services Officer shall assign professional staff to assist the Commission in its work. Clerical staff shall be furnished to the Commission through the offices of the House of Representatives and Senate Directors of Legislative Assistants. The Commission may meet in the Legislative Building or the Legislative Office Building. The Commission may exercise all of the powers provided under G.S. 120-19 through G.S. 120-19.4 while in the discharge of its official duties. The funds appropriated by this act to the Reserve for the Blue Ribbon Commission on Medicaid Reform shall be transferred to the Department of Health and Human Services in order to draw down federal match funds to be used to cover the cost of the Commission's work.
SECTION 6.14A.(c) By April 1, 2004, the Commission shall make an interim report to the 2003 General Assembly. The Commission shall make its final report to the 2005 General Assembly by February 1, 2005, and shall expire upon submitting that report.
COMPETITIVELY BID BEVERAGES CONTRACTS
"§ 143-64. Beverages contracts.
Notwithstanding any other provision of law, local school administrative units, community colleges, and constituent institutions of The University of North Carolina shall competitively bid contracts that involve the sale of juice or bottled water. The local school administrative units, community colleges, and constituent institutions may set quality standards for these beverages, and these standards may be used to accept or reject a bid."
EXPENDITURES OF FUNDS IN RESERVES LIMITED
SECTION 6.19. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
TRANSFER OF LAND FOR THE MILLENNIUM CAMPUSES OF UNC-GREENSBORO AND NC A&T STATE UNIVERSITY
SECTION 6.20. Notwithstanding G.S. 143-341(4)g. or any other provision of law, the property currently allocated to the Department of Administration and previously allocated to the Department of Health and Human Services for the Central School for the Deaf at Greensboro is hereby reallocated to the Board of Governors of The University of North Carolina. This property shall be used for the establishment of Millennium Campuses of the University of North Carolina at Greensboro and North Carolina Agricultural and Technical State University.
REVISE LAW ON NON-STATE ENTITY REPORTS ON USE OF STATE FUNDS
SECTION 6.21. G.S. 143-6.1 reads as rewritten:
"§ 143-6.1. Report on use of State funds by non-State entities.
(a) Disbursement and Use
of State Funds. - Every corporation, organization, and institution that
receives, uses, or expends any State funds shall use or expend the funds only
for the purposes for which they were appropriated by the General Assembly or
collected by the State. State funds include federal funds that flow through the
State. For the purposes of this section, the term "grantee" means a
corporation, organization, or institution that receives, uses, or expends
any State funds. The receives a grant of State funds from a State agency,
department, or institution.
The State may shall not disburse State
funds appropriated by the General Assembly to any grantee or collected by the
State for use by any grantee if unless that grantee has failed
to provide any reports or financial information previously required by this
section. In addition, before disbursing the funds, the Office of State Budget
and Management may require the grantee to supply information demonstrating that
the grantee is capable of managing the funds in accordance with law and has
established adequate financial procedures and controls. grantee:
(1) Provides all reports and financial information required under this section to the appropriate State agencies and officials; and
(2) Provides any additional information that the Office of State Budget and Management deems necessary demonstrating that such grantee is capable of managing the funds in accordance with law and has established adequate financial procedures and controls.
All financial statements furnished to the State Auditor pursuant to this section, and any audits or other reports prepared by the State Auditor, are public records.
(b) State Agency Reports.
Responsibilities. - A State agency that receives State funds and
then disburses the State funds to a grantee must identify the grantee to the
State Auditor, unless the funds were for the purchase of goods and services.
The State agency must submit shall:
(1) Submit documents to the State Auditor in a prescribed format describing standards of compliance and suggested audit procedures sufficient to give adequate direction to independent auditors performing audits.
(2) Annually, at the time the grant is made, notify each grantee, in writing, of the reporting requirements set forth in this section and that the State agency is not authorized to disburse funds to grantees that fail to comply with the reporting requirements for funds received during the prior fiscal year.
(3) Provide each grantee with the accounting form and other requirements prescribed by the State Auditor.
(4) Submit a list to the State Auditor by October 31 each year of every grantee to which the agency disbursed State funds in the prior fiscal year, the amount disbursed to each grantee, and other such information as required by the State Auditor to comply with the requirements set forth in this section.
(5) Submit a list to the Office of State Budget and Management by January 31 each year of every grantee to which the agency disbursed State funds in the prior fiscal year and, for each grantee, whether that grantee has filed the sworn accounting required by subsection (c) of this section and whether the sworn accounting is in compliance with subsection (c) of this section.
(c) Grantee Receipt and
Expenditure Reports. - A grantee that receives, uses, or expends between
fifteen thousand dollars ($15,000) and three hundred thousand dollars
($300,000) in State funds annually, except when the funds are for the
purchase of goods or services, annually must file annually with the
State agency that disbursed the funds a sworn accounting of receipts and
expenditures of the State funds and a description
of activities and accomplishments undertaken by the grantee with State funds. This accounting must be attested to by
the treasurer of the grantee and one other authorizing officer of the grantee.
The accounting must be filed within six months after the end of the grantee's
fiscal year in which the State funds were received. The accounting shall be in
the form required by the State Auditor and provided to the grantee by the disbursing
agency. Each State agency shall develop a format for these accountings and
shall obtain the State Auditor's approval of the format.
(d) Grantee Audit
Reports. - A grantee that receives, uses, or expends State funds in the amount
of three hundred thousand dollars ($300,000) or more annually, except when
the funds are for the purchase of goods or services, annually must
file annually with the State Auditor a financial statement in the form and on
the schedule prescribed by the State Auditor. These
audit reports shall be filed no later than nine months after the close of the
grantee's fiscal year. The financial statement must be audited in
accordance with standards prescribed by the State Auditor to assure that State
funds are used for the purposes provided by law.
A grantee that receives, uses, or expends State funds in the amount of three hundred thousand dollars ($300,000) or more annually must file annually with the State agency that disbursed the funds a description of activities and accomplishments undertaken by the grantee with State funds. This description must be filed within 90 days after the end of the grantee's fiscal year in which the State funds were received.
(d1) State Auditor's Responsibilities. - The State Auditor shall:
(1) Review each audit submitted pursuant to subsection (d) of this section and determine that it has been conducted in accordance with generally accepted audit standards and that the grantee has received a clean audit opinion.
(2) Notify disbursing agencies by January 31 each year of all grantees that are not in compliance with the reporting requirements set forth in this section.
(3) Notify disbursing agencies of any material audit findings in the audits of their grantees.
(4) Submit a list to the Office of State Budget and Management by January 31 each year of every grantee that received State funds in the prior fiscal year and, for each grantee, whether that grantee has complied with this subsection.
(d2) Before a State agency disburses any funds for the fourth quarter of a fiscal year, the agency shall, in consultation with the Office of State Budget and Management, verify that the grantee has complied with the reporting requirements of this section. A State agency shall not disburse funds during the fourth quarter of the fiscal year to any grantee that has not complied with this section by March 31 of each year.
(d3) The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by May 1 of each year on all grantees that failed to comply with this section for the prior fiscal year, the amount of State funds that were disbursed to each of those grantees during that fiscal year, and the amount of State funds that were withheld.
(e) Federal Reporting Requirements. - Federal law may require a grantee to make additional reports with respect to funds for which reports are required under this section. Notwithstanding the provisions of this section, a grantee may satisfy the reporting requirements of subsection (c) of this section by submitting a copy of the report required under federal law with respect to the same funds or by submitting a copy of the report described in subsection (d) of this section.
(f) Audit Oversight. - The State Auditor has audit oversight, pursuant to Article 5A of Chapter 147 of the General Statutes, of every grantee that receives, uses, or expends State funds. Such a grantee must, upon request, furnish to the State Auditor for audit all books, records, and other information necessary for the State Auditor to account fully for the use and expenditure of State funds. The grantee must furnish any additional financial or budgetary information requested by the State Auditor."
State departments and agencies shall report to the Joint Legislative Commission on Governmental Operations within 30 days on all transfers from personal service line items to nonpersonal service line items.
General Fund salary and related benefit appropriations for State departments and agencies that are reduced or eliminated in this act shall not be replaced by other budgeted line items supported by General Fund appropriations. Nonpersonal service funds or lapsed salary funds shall not be used to establish new permanent employee positions or to raise the salary of existing employees.
reserve for special funds transfer
If the above transfers are insufficient to meet the obligations set forth in the Reserve for Special Funds Transfer, then in such event the Office of State Budget and Management may transfer funds from the Clean Water Management Trust Fund, the Natural Heritage Trust Fund, or the Parks and Recreation Trust Fund, provided such transfers shall not exceed twenty percent (20%) of the balance of said fund and provided the Office of State Budget and Management consults with the Joint Legislative Commission on Governmental Operations prior to making the transfer. Further the Office of State Budget and Management may seek to transfer in excess of twenty percent (20%) of other special funds only after consulting with the Joint Legislative Commission on Governmental Operations prior to making the transfer.
2003-2004 MONTHLY SALARY SCHEDULE
"A" TEACHERS
Years of "A" NBPTS
Experience Teachers Certification
0 $2,525 N/A
1 $2,567 N/A
2 $2,611 N/A
3 $2,764 $3,096
4 $2,904 $3,252
5 $3,036 $3,400
6 $3,164 $3,544
7 $3,266 $3,658
8 $3,314 $3,712
9 $3,362 $3,765
10 $3,412 $3,821
11 $3,461 $3,876
12 $3,511 $3,932
13 $3,561 $3,988
14 $3,614 $4,048
15 $3,667 $4,107
16 $3,722 $4,169
17 $3,777 $4,230
18 $3,834 $4,294
19 $3,892 $4,359
20 $3,950 $4,424
21 $4,011 $4,492
22 $4,072 $4,561
23 $4,136 $4,632
24 $4,200 $4,704
25 $4,264 $4,776
26 $4,330 $4,850
27 $4,398 $4,926
28 $4,467 $5,003
29 $4,538 $5,083
30+ $4,538 $5,083
2003-2004 MONTHLY SALARY SCHEDULE
"M" TEACHERS
Years of "M" NBPTS
Experience Teachers Certification
0 $2,778 N/A
1 $2,824 N/A
2 $2,872 N/A
3 $3,040 $3,405
4 $3,194 $3,577
5 $3,340 $3,741
6 $3,480 $3,898
7 $3,593 $4,024
8 $3,645 $4,082
9 $3,698 $4,142
10 $3,753 $4,203
11 $3,807 $4,264
12 $3,862 $4,325
13 $3,917 $4,387
14 $3,975 $4,452
15 $4,034 $4,518
16 $4,094 $4,585
17 $4,155 $4,654
18 $4,217 $4,723
19 $4,281 $4,795
20 $4,345 $4,866
21 $4,412 $4,941
22 $4,479 $5,016
23 $4,550 $5,096
24 $4,620 $5,174
25 $4,690 $5,253
26 $4,763 $5,335
27 $4,838 $5,419
28 $4,914 $5,504
29 $4,992 $5,591
30+ $4,992 $5,591
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.
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.
SCHOOL-BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 7.2.(a) Effective for the 2003-2004 school year, the Director of the Budget shall transfer from the Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools for the 2003-2004 fiscal year funds necessary to implement the salary schedule for school-based administrators as provided in this section. These funds shall be used for State-paid employees only.
SECTION 7.2.(b) The base salary schedule for school-based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2003-2004 fiscal year, commencing July 1, 2003, is as follows:
2003-2004
PRINCIPAL AND ASSISTANT PRINCIPAL SALARY SCHEDULES
CLASSIFICATION
Yrs of Assistant Prin I Prin II Prin III Prin IV
Exp Principal (0-10) (11-21) (22-32) (33-43)
0-4 $3,226 - - - -
5 $3,373 - - - -
6 $3,515 - - - -
7 $3,629 - - - -
8 $3,681 $3,681 - - -
9 $3,735 $3,735 - - -
10 $3,791 $3,791 $3,845 - -
11 $3,845 $3,845 $3,901 - -
12 $3,901 $3,901 $3,956 $4,015 -
13 $3,956 $3,956 $4,015 $4,074 $4,135
14 $4,015 $4,015 $4,074 $4,135 $4,197
15 $4,074 $4,074 $4,135 $4,197 $4,259
16 $4,135 $4,135 $4,197 $4,259 $4,324
17 $4,197 $4,197 $4,259 $4,324 $4,388
18 $4,259 $4,259 $4,324 $4,388 $4,456
19 $4,324 $4,324 $4,388 $4,456 $4,524
20 $4,388 $4,388 $4,456 $4,524 $4,596
21 $4,456 $4,456 $4,524 $4,596 $4,666
22 $4,524 $4,524 $4,596 $4,666 $4,737
23 $4,596 $4,596 $4,666 $4,737 $4,811
24 $4,666 $4,666 $4,737 $4,811 $4,886
25 $4,737 $4,737 $4,811 $4,886 $4,963
26 $4,811 $4,811 $4,886 $4,963 $5,042
27 $4,886 $4,886 $4,963 $5,042 $5,143
28 $4,963 $4,963 $5,042 $5,143 $5,246
29 $5,042 $5,042 $5,143 $5,246 $5,351
30 $5,143 $5,143 $5,246 $5,351 $5,458
31 $5,246 $5,246 $5,351 $5,458 $5,567
32 - $5,351 $5,458 $5,567 $5,678
33 - - $5,567 $5,678 $5,792
34 - - $5,678 $5,792 $5,908
35 - - - $5,908 $6,026
36 - - - $6,026 $6,147
37 - - - - $6,270
2003-2004
PRINCIPAL AND ASSISTANT PRINCIPAL SALARY SCHEDULES
CLASSIFICATION
Yrs of Prin V Prin VI Prin VII Prin VIII
Exp (44-54) (55-65) (66-100) (101+)
14 $4,259 - - -
15 $4,324 - - -
16 $4,388 $4,456 - -
17 $4,456 $4,524 $4,666 -
18 $4,524 $4,596 $4,737 $4,811
19 $4,596 $4,666 $4,811 $4,886
20 $4,666 $4,737 $4,886 $4,963
21 $4,737 $4,811 $4,963 $5,042
22 $4,811 $4,886 $5,042 $5,143
23 $4,886 $4,963 $5,143 $5,246
24 $4,963 $5,042 $5,246 $5,351
25 $5,042 $5,143 $5,351 $5,458
26 $5,143 $5,246 $5,458 $5,567
27 $5,246 $5,351 $5,567 $5,678
28 $5,351 $5,458 $5,678 $5,792
29 $5,458 $5,567 $5,792 $5,908
30 $5,567 $5,678 $5,908 $6,026
31 $5,678 $5,792 $6,026 $6,147
32 $5,792 $5,908 $6,147 $6,270
33 $5,908 $6,026 $6,270 $6,395
34 $6,026 $6,147 $6,395 $6,523
35 $6,147 $6,270 $6,523 $6,653
36 $6,270 $6,395 $6,653 $6,786
37 $6,395 $6,523 $6,786 $6,922
38 $6,523 $6,653 $6,922 $7,060
39 - $6,786 $7,060 $7,201
40 - $6,922 $7,201 $7,345
41 - - $7,345 $7,492
SECTION 7.2.(c) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools, shall be determined in accordance with the following schedule:
Number of Teachers
Classification Supervised
Assistant Principal
Principal I Fewer than 11 Teachers
Principal II 11-21 Teachers
Principal III 22-32 Teachers
Principal IV 33-43 Teachers
Principal V 44-54 Teachers
Principal VI 55-65 Teachers
Principal VII 66-100 Teachers
Principal VIII More than 100 Teachers
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non-State funds or the principal or teacher assistants.
The beginning classification for principals in alternative schools shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 7.2.(d) A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal. A principal or assistant principal shall also continue to receive any additional State-funded percentage increases earned for the 1997-1998, 1998-1999, and 1999-2000 school years for improvement in student performance or maintaining a safe and orderly school.
SECTION 7.2.(e) Principals and assistant principals with certification based on academic preparation at the six-year degree level shall be paid a salary supplement of one hundred twenty-six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty-three dollars ($253.00) per month.
SECTION 7.2.(f) There shall be no State requirement that superintendents in each local school unit shall receive in State-paid salary at least one percent (1%) more than the highest paid principal receives in State salary in that school unit; provided, however, the additional State-paid salary a superintendent who was employed by a local school administrative unit for the 1992-1993 fiscal year received because of that requirement shall not be reduced because of this subsection for subsequent fiscal years that the superintendent is employed by that local school administrative unit so long as the superintendent is entitled to at least that amount of additional State-paid salary under the rules in effect for the 1992-1993 fiscal year.
SECTION 7.2.(g) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
(1) 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.
(2) If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State-allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 7.2.(i) Participants in an approved full-time masters in school administration program shall receive up to a 10-month stipend at the beginning salary of an assistant principal during the internship period of the masters program. For the 2004-2005 fiscal year and subsequent fiscal years, the stipend shall not exceed the difference between the beginning salary of an assistant principal and any fellowship funds received by the intern as a full-time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full-time masters in school administration program shall supply the Department of Public Instruction with certification of eligible full-time interns.
SECTION 7.2.(j) During the 2003-2004 fiscal year, the placement on the salary schedule of an administrator with a one-year provisional assistant principal's certificate shall be at the entry-level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.
School Administrator I $2,932 $5,266
School Administrator II $3,112 $5,586
School Administrator III $3,303 $5,925
School Administrator IV $3,436 $6,162
School Administrator V $3,574 $6,410
School Administrator VI $3,792 $6,799
School Administrator VII $3,945 $7,072
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee hired on or after July 1, 2003.
Superintendent I $4,187 $7,503
Superintendent II $4,445 $7,956
Superintendent III $4,716 $8,441
Superintendent IV $5,005 $8,953
Superintendent V $5,312 $9,499
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.
Notwithstanding the provisions of this subsection, a local board of education may pay an amount in excess of the applicable range to a superintendent who is entitled to receive the higher amount under Section 7.2.(f) of this act.
RESERVE FOR EXPERIENCE STEP INCREASE FOR TEACHERS AND PRINCIPALS IN PUBLIC SCHOOLS
SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES
SECTION 7.6.(a) Funds for Supplemental Funding. - The General Assembly finds that it is appropriate to provide supplemental funds in low-wealth counties to allow those counties to enhance the instructional program and student achievement. Therefore, funds are appropriated to State Aid to Local School Administrative Units for the 2003-2004 fiscal year and the 2004-2005 fiscal year to be used for supplemental funds for the schools.
SECTION 7.6.(b) Use of Funds for Supplemental Funding. - All funds received pursuant to this section shall be used only: (i) to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, school computer technicians, instructional supplies and equipment, staff development, and textbooks; (ii) for salary supplements for instructional personnel and instructional support personnel; and (iii) to pay an amount not to exceed ten thousand dollars ($10,000) of the plant operation contract cost charged by the Department of Public Instruction for services.
Local boards of education are encouraged to use at least twenty-five percent (25%) of the funds received pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end-of-grade tests in grades 3-8 and children who are performing at Level I or II on the writing tests in grades 4 and 7. Local boards of education shall report to the State Board of Education on an annual basis on funds used for this purpose, and the State Board shall report this information to the Joint Legislative Education Oversight Committee. These reports shall specify how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools, such as teacher recruitment, closing the achievement gap, improving student accountability, addressing the needs of at-risk students, and establishing and maintaining safe schools.
SECTION 7.6.(c) Definitions. - As used in this section:
(1) "Anticipated county property tax revenue availability" means the county-adjusted property tax base multiplied by the effective State average tax rate.
(2) "Anticipated total county revenue availability" means the sum of the:
a. Anticipated county property tax revenue availability,
b. Local sales and use taxes received by the county that are levied under Chapter 1096 of the 1967 Session Laws or under Subchapter VIII of Chapter 105 of the General Statutes,
c. Sales tax hold harmless reimbursement received by the county under G.S. 105-521, and
d. Fines and forfeitures deposited in the county school fund for the most recent year for which data are available.
(3) "Anticipated total county revenue availability per student" means the anticipated total county revenue availability for the county divided by the average daily membership of the county.
(4) "Anticipated State average revenue availability per student" means the sum of all anticipated total county revenue availability divided by the average daily membership for the State.
(5) "Average daily membership" means average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education. If a county contains only part of a local school administrative unit, the average daily membership of that county includes all students who reside within the county and attend that local school administrative unit.
(6) "County-adjusted property tax base" shall be computed as follows:
a. Subtract the present-use value of agricultural land, horticultural land, and forestland in the county, as defined in G.S. 105-277.2, from the total assessed real property valuation of the county,
b. Adjust the resulting amount by multiplying by a weighted average of the three most recent annual sales assessment ratio studies,
c. Add to the resulting amount the:
1. Present-use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105-277.2,
2. Value of property of public service companies, determined in accordance with Article 23 of Chapter 105 of the General Statutes, and
3. Personal property value for the county.
(7) "County-adjusted property tax base per square mile" means the county-adjusted property tax base divided by the number of square miles of land area in the county.
(8) "County wealth as a percentage of State average wealth" shall be computed as follows:
a. Compute the percentage that the county per capita income is of the State per capita income and weight the resulting percentage by a factor of five-tenths,
b. Compute the percentage that the anticipated total county revenue availability per student is of the anticipated State average revenue availability per student and weight the resulting percentage by a factor of four-tenths,
c. Compute the percentage that the county-adjusted property tax base per square mile is of the State-adjusted property tax base per square mile and weight the resulting percentage by a factor of one-tenth,
d. Add the three weighted percentages to derive the county wealth as a percentage of the State average wealth.
(9) "Effective county tax rate" means the actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.
(10) "Effective State average tax rate" means the average of effective county tax rates for all counties.
(10a) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C-447.
(11) "Per capita income" means the average for the most recent three years for which data are available of the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis, including any reported modifications for prior years as outlined in the most recent report.
(12) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105-289(h).
(13) "State average current expense appropriations per student" means the most recent State total of county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C-447.
(14) "State average adjusted property tax base per square mile" means the sum of the county-adjusted property tax bases for all counties divided by the number of square miles of land area in the State.
(14a) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(15) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.6.(d) Eligibility for Funds. - Except as provided in subsection (h) of this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than one hundred percent (100%).
SECTION 7.6.(e) Allocation of Funds. - Except as provided in subsection (g) of this section, the amount received per average daily membership for a county shall be the difference between the State average current expense appropriations per student and the current expense appropriations per student that the county could provide given the county's wealth and an average effort to fund public schools. (To derive the current expense appropriations per student that the county could be able to provide given the county's wealth and an average effort to fund public schools, multiply the county wealth as a percentage of State average wealth by the State average current expense appropriations per student.)
The funds for the local school administrative units located in whole or in part in the county shall be allocated to each local school administrative unit located in whole or in part in the county based on the average daily membership of the county's students in the school units.
If the funds appropriated for supplemental funding are not adequate to fund the formula fully, each local school administrative unit shall receive a pro rata share of the funds appropriated for supplemental funding.
SECTION 7.6.(f) Formula for Distribution of Supplemental Funding Pursuant to This Section Only. - The formula in this section is solely a basis for distribution of supplemental funding for low-wealth counties and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for low-wealth counties.
SECTION 7.6.(g) Minimum Effort Required. - Counties that had effective tax rates in the 1996-1997 fiscal year that were above the State average effective tax rate but that had effective rates below the State average in the 1997-1998 fiscal year or thereafter shall receive reduced funding under this section. This reduction in funding shall be determined by subtracting the amount that the county would have received pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws from the amount that the county would have received if qualified for full funding and multiplying the difference by ten percent (10%). This method of calculating reduced funding shall apply one time only.
This method of calculating reduced funding shall not apply in cases in which the effective tax rate fell below the statewide average effective tax rate as a result of a reduction in the actual property tax rate. In these cases, the minimum effort required shall be calculated in accordance with Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
If the county documents that it has increased the per student appropriation to the school current expense fund in the current fiscal year, the State Board of Education shall include this additional per pupil appropriation when calculating minimum effort pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
SECTION 7.6.(h) Nonsupplant Requirement. - A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2003-2005 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety-five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
SECTION 7.6.(i) Reports. - The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2004, if it determines that counties have supplanted funds.
SECTION 7.6.(j) Department of Revenue Reports. - The Department of Revenue shall provide to the Department of Public Instruction a preliminary report for the current fiscal year of the assessed value of the property tax base for each county prior to March 1 of each year and a final report prior to May 1 of each year. The reports shall include for each county the annual sales assessment ratio and the taxable values of (i) total real property, (ii) the portion of total real property represented by the present-use value of agricultural land, horticultural land, and forestland as defined in G.S. 105-277.2, (iii) property of public service companies determined in accordance with Article 23 of Chapter 105 of the General Statutes, and (iv) personal property.
SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
SECTION 7.7.(a) Funds for Small School Systems. - Except as provided in subsection (b) of this section, the State Board of Education shall allocate funds appropriated for small school system supplemental funding (i) to each county school administrative unit with an average daily membership of fewer than 3,175 students and (ii) to each county school administrative unit with an average daily membership from 3,175 to 4,000 students if the county in which the local school administrative unit is located has a county-adjusted property tax base per student that is below the State-adjusted property tax base per student and if the total average daily membership of all local school administrative units located within the county is from 3,175 to 4,000 students. The allocation formula shall:
(1) Round all fractions of positions to the next whole position.
(2) Provide five and one-half additional regular classroom teachers in counties in which the average daily membership per square mile is greater than four, and seven additional regular classroom teachers in counties in which the average daily membership per square mile is four or fewer.
(3) Provide additional program enhancement teachers adequate to offer the standard course of study.
(4) Change the duty-free period allocation to one teacher assistant per 400 average daily membership.
(5) Provide a base for the consolidated funds allotment of at least six hundred fourteen thousand one hundred forty-eight dollars ($614,148), excluding textbooks for the 2003-2004 fiscal year and a base of six hundred forty-seven thousand four hundred eighty-one dollars ($647,481) for the 2004-2005 fiscal year.
(6) Allot vocational education funds for grade 6 as well as for grades 7-12.
If funds appropriated for each fiscal year for small school system supplemental funding are not adequate to fully fund the program, the State Board of Education shall reduce the amount allocated to each county school administrative unit on a pro rata basis. This formula is solely a basis for distribution of supplemental funding for certain county school administrative units and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for such county administrative units.
SECTION 7.7.(b) Nonsupplant Requirement. - A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2003-2005 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety-five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
SECTION 7.7.(c) Phase-Out Provisions. - If a local school administrative unit becomes ineligible for funding under this formula solely because of an increase in the county-adjusted property tax base per student of the county in which the local school administrative unit is located, funding for that unit shall be phased out over a two-year period. For the first year of ineligibility, the unit shall receive the same amount it received for the prior fiscal year. For the second year of ineligibility, it shall receive one-half of that amount.
If a local school administrative unit becomes ineligible for funding under this formula solely because of an increase in the population of the county in which the local school administrative unit is located, funding for that unit shall be continued for five years after the unit becomes ineligible.
SECTION 7.7.(d) Definitions. - As used in this section:
(1) "Average daily membership" means within two percent (2%) of the average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education.
(2) "County-adjusted property tax base per student" means the total assessed property valuation for each county, adjusted using a weighted average of the three most recent annual sales assessment ratio studies, divided by the total number of students in average daily membership who reside within the county.
(2a) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C-447.
(3) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105-289(h).
(4) "State-adjusted property tax base per student" means the sum of all county adjusted property tax bases divided by the total number of students in average daily membership who reside within the State.
(4a) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(5) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued during the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.7.(e) Reports. - The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2004, if it determines that counties have supplanted funds.
SECTION 7.7.(f) Use of Funds. - Local boards of education are encouraged to use at least twenty percent (20%) of the funds they receive pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end-of-grade tests in grades 3-8 and children who are performing at Level I or II on the writing tests in grades 4 and 7. Local boards of education shall report to the State Board of Education on an annual basis on funds used for this purpose, and the State Board shall report this information to the Joint Legislative Education Oversight Committee. These reports shall specify how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools such as teacher recruitment, closing the achievement gap, improving student accountability, addressing the needs of at-risk students, and establishing and maintaining safe schools.
APPROPRIATIONS FOR CONTINUALLY LOW-PERFORMING SCHOOLS
(1) The sum of one million six hundred fifty-seven thousand three hundred forty-five dollars ($1,657,345) for the 2003-2004 and 2004-2005 fiscal years shall be used to reduce class size at a continually low-performing school to ensure that the number of teachers allotted for students in grades four and five is one for every 17 students, and that the number of teachers allotted in grades six through eight is one for every 17 students, and that the number of teachers allotted in grades nine through twelve is one for every 20 students; and
(2) The sum of two hundred ninety-eight thousand seven hundred seventy dollars ($298,770) for the 2003-2004 and 2004-2005 fiscal years shall be used to extend teachers' contracts for a total of 10 days, including five days of additional instruction with related costs for other than teachers' salaries for the 2003-2004 and 2004-2005 school years.
Notwithstanding any other provision of law, the State Board of Education may implement intervention strategies for the 2003-2004 and 2004-2005 school years that it deems appropriate.
IMMEDIATE ASSISTANCE TO THE HIGHEST PRIORITY ELEMENTARY SCHOOLS
(1) The sum of six million ninety-three thousand one hundred eighty-one dollars ($6,093,181) for the 2003-2004 and 2004-2005 fiscal years shall be used to reduce class size at each of these schools to ensure that no class kindergarten through third grade has more than 15 students;
(2) The sum of two million two hundred sixty-six thousand twenty-six dollars ($2,266,026) for the 2003-2004 and 2004-2005 fiscal years shall be used to extend all teachers' contracts at these schools for a total of 10 days, with five days for staff development, including staff development on methods to individualize instruction in smaller classes, and preparation for the 2003-2004 and 2004-2005 school years, and five additional days of instruction with related costs for other than teachers' salaries; and
(3) The sum of one million seven hundred seventy-five thousand four hundred dollars ($1,775,400) for the 2003-2004 and 2004-2005 fiscal years shall be used to provide one additional instructional support position at each priority school.
No funds from the teacher assistant allotment category may be allotted to the local school administrative units for students assigned to these schools. Any teacher assistants displaced from jobs in these high-priority elementary schools shall be given preferential consideration for vacant teacher assistant positions at other schools, provided their job performance has been satisfactory. Nothing in this section prevents the local school administrative unit from placing teacher assistants in these schools.
EVALUATION OF INITIATIVES TO ASSIST HIGH-PRIORITY SCHOOLS
(1) An assessment of the overall impact these initiatives have had on student achievement;
(2) An assessment of the effectiveness of each individual initiative set for this section in improving student achievement;
(3) An identification of changes in staffing patterns, instructional methods, staff development, and parental involvement as a result of these initiatives;
(4) An accounting of how funds and personnel resources made available for these schools were utilized and the impact of varying patterns of utilization on changes in student achievement;
(5) An assessment of the impact of bonuses for mathematics, science, and special education teachers on (i) the retention of these teachers in the targeted schools, (ii) the recruitment of teachers in these specialties into targeted schools, (iii) the recruitment of teachers certified in these disciplines, and (iv) student achievement in schools at which these teachers receive these bonuses; and
(6) Recommendations for the continuance and improvement of these initiatives.
The State Board of Education shall make a report to the Joint Legislative Education Oversight Committee regarding the results of this evaluation by December 1 of each year. The State Board of Education shall submit its recommendations for changes to these initiatives to the Committee at anytime.
AT-RISK STUDENT SERVICES/ALTERNATIVE SCHOOLS
ADDITIONAL TEACHER POSITIONS FOR SECOND GRADE
SECTION 7.12.(a) The maximum class size limits for second grade established by the State Board of Education for the 2003-2004 school year shall be reduced by two from the 2002-2003 limits, based on an allotment ratio of one teacher for every 18 students.
SECTION 7.12.(b) For the 2003-2004 school year, local school administrative units shall use these additional teacher positions to reduce class size in second grade.
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
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.
STUDENTS WITH LIMITED ENGLISH PROFICIENCY
The State Board shall allocate these funds to local school administrative units and to charter schools under a formula that takes into account the average percentage of students in the units or the charters over the past three years who have limited English proficiency. The State Board shall allocate funds to a unit or a charter school only if (i) average daily membership of the unit or the charter school includes at least 20 students with limited English proficiency or (ii) students with limited English proficiency comprise at least two and one-half percent (2.5%) of the average daily membership of the unit or charter school. For the portion of the funds that is allocated on the basis of the number of identified students, the maximum number of identified students for whom a unit or charter school receives funds shall not exceed ten and six-tenths percent (10.6%) of its average daily membership.
Local school administrative units shall use funds allocated to them to pay for classroom teachers, teacher assistants, tutors, textbooks, classroom materials/instructional supplies/equipment, transportation costs, and staff development of teachers for students with limited English proficiency.
A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds.
Students in the head count shall be assessed at least once every three years to determine their level of English proficiency. A student who scores "superior" on the standard English language proficiency assessment instrument used in this State shall not be included in the head count of students with limited English proficiency.
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
(1) Incentive awards in schools that achieve higher than expected improvements may be up to:
a. One thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be up to:
a. Seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Three hundred seventy-five dollars ($375.00) for each teacher assistant.
SECTION 7.16.(e) Subsection (c) of this section becomes effective June 30, 2003.
EXPENDITURE OF FUNDS TO IMPROVE STUDENT ACCOUNTABILITY
The principal of a school receiving these funds, in consultation with the faculty and the site-based management team, shall implement plans for expending these funds to improve the performance of students.
Local boards of education are encouraged to use federal funds such as Title I Comprehensive School Reform Development Funds and to examine the use of State funds to ensure that every student is performing at or above grade level in reading and mathematics.
These funds shall be allocated to local school administrative units for the 2003-2004 fiscal year within 30 days of the date this act becomes law.
FUNDS FOR TEACHER RECRUITMENT INITIATIVES
RECRUITMENT AND RETENTION INITIATIVES TO ADDRESS TEACHER SHORTAGES
(1) A teacher who receives a bonus pursuant to subsection (a) of this section is reassigned to a school at which there is no such bonus;
(2) A teacher who receives a bonus pursuant to subsection (a) of this section is reassigned to teach in a field for which there is no such bonus; or
(3) A teacher receives a bonus pursuant to subsection (a) of this section and the bonus is subsequently discontinued or reduced.
SECTION 7.20.(c) Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-296.3. Certification of highly qualified teachers from other states.
Notwithstanding any other provision of law, a teacher from another state shall be granted North Carolina certification under the following conditions:
(1) New hires to the profession from other states. - A teacher from another state who (i) has less than three years of experience as a full-time classroom teacher, (ii) is fully certified and highly qualified, as provided in the No Child Left Behind Act of 2001, in that other state; and (iii) is employed as a teacher by a local school administrative unit in North Carolina, is deemed to have satisfied the academic and professional preparation required to receive initial certification in North Carolina. The initial certification shall be granted for one year or for the period of time necessary for the teacher to acquire three years of full-time teaching experience in North Carolina and the other state combined, whichever is longer.
Once the teacher has three years of experience as a full-time teacher with at least one full year in a local school administrative unit in North Carolina, the teacher shall receive continuing certification unless the employing local school administrative unit recommends that the teacher not be granted continuing certification. The teacher shall be subject to the same requirements for continuing certification and certificate renewal as other teachers in North Carolina.
The teacher shall not be required to take and pass a standard examination to demonstrate adequate academic and professional preparation for certification, except as otherwise provided by the No Child Left Behind Act of 2001.
(2) New hires with at least three years of experience from other states. - A teacher from another state who (i) has three or more years of experience as a full-time teacher, (ii) is fully certified and highly qualified as provided in the No Child Left Behind Act of 2001 in that other state, and (iii) is employed as a teacher by a local school administrative unit in North Carolina is deemed to have satisfied the academic and professional preparation required to receive continuing certification for one year in North Carolina.
If at the end of one year of employment, the employing local board of education recommends to the State Board of Education that the teacher's certification be renewed, the teacher shall retain continuing certification. The teacher shall be subject to the same requirements for continuing certification and certificate renewal as other teachers in North Carolina.
The teacher shall not be required to take and pass a standard examination to demonstrate adequate academic and professional preparation for certification, except as otherwise provided by the No Child Left Behind Act of 2001."
SECTION 7.20.(e) G.S. 115C-296(c) reads as rewritten:
"(c) It is the policy of
the State of North Carolina to encourage lateral entry into the profession of
teaching by skilled individuals from the private sector.qualified
individuals who hold a postsecondary degree that is at least a bachelors
degree. To this end, before the 1985-862004-2005 school year
begins, the State Board of Education shall develop criteria and procedures
to accomplish the employment of such individuals as classroom teachers.review
and revise the curriculum requirements for lateral entry candidates to receive
certification. Regardless of credentials or competence, no one shall
begin teaching above the middle level of differentiation. Skilled individuals
who choose to enter the profession of teaching laterally
Qualified first-year lateral entry candidates who are required by federal law to obtain certification before contracting to teach for a fourth year may be granted a provisional teaching certificate for no more than three years. Other qualified lateral entry candidates may be granted a provisional teaching certificate for no more than five years and shall be required to obtain certification before contracting for a sixth year of service with any local administrative unit in this State. The State Board of Education shall ensure that the institutions of higher learning in the State, including community colleges, that are providing training to lateral entry candidates shall provide that training in a uniform and consistent manner that enables lateral entry candidates to obtain certification in accordance with the requirements of the No Child Left Behind Act of 2001 while working as full-time teachers.
It is further the policy of the State of North Carolina to
ensure that local boards of education can provide the strongest possible
leadership for schools based upon the identified and changing needs of
individual schools. To this end, before the 1994-95 school year begins, the
State Board of Education shall carefully consider a lateral entry program for
school administrators to ensure that local boards of education will have
sufficient flexibility to attract able candidates."
SECTION 7.20.(h) This section expires June 30, 2004.
FUNDS FOR THE TESTING AND IMPLEMENTATION OF THE NEW STUDENT INFORMATION SYSTEM
Testing shall include an emphasis on the security of the system.
SECTION 7.21.(c) This section becomes effective June 30, 2003.
SECTION 7.22. The State Board of Education may expend up to five hundred thousand dollars ($500,000) each year for the 2003-2004 and 2004-2005 fiscal years from unexpended funds for certified employees' salaries to pay expenses related to pending litigation.
LOCAL EDUCATION AGENCY FLEXIBILITY
SECTION 7.23. Within 14 days of the date this act becomes law, the State Board of Education shall notify each local school administrative unit of the amount the unit must reduce from State General Fund appropriations. The State Board shall determine the amount of the reduction for each unit on the basis of average daily membership.
Each unit shall report to the Department of Public Instruction on the discretionary budget reductions it has identified for the unit within 30 days of the date this act becomes law and by September 1, 2004, for reductions for the 2004-2005 fiscal year. No later than December 31, 2003, the State Board of Education shall make a summary report to the Office of State Budget and Management and the Fiscal Research Division on all reductions made by the LEAs to achieve this reduction.
For fiscal years 2003-2004 and 2004-2005, the General Assembly urges local school administrators to make every effort to reduce spending whenever and wherever such budget reductions are appropriate as long as the targeted reductions do not directly impact classroom services or any services for students at risk or children with special needs, including those services or supports that are called for in students' Personal Education Plans (PEP) and/or Individual Education Plans (IEP). If reductions to the allotment categories listed in this paragraph are necessary in order to meet the reduction target, the local board of education shall submit an explanation of the anticipated impact of the reductions to student services along with the budget reductions to the Department of Public Instruction. By August 15, 2004, for fiscal year 2005-2006 and subsequent fiscal years, the State Board of Education shall determine the changes to the allotment categories to make such reductions permanent. Notwithstanding other provisions of law, the State Board of Education has the authority to reduce the proposed funding level of any allotment category in the State Public School Fund or the Department of Public Instruction in order to carry out the requirements of this section to make changes to the proposed continuation budget for the 2005-2007 fiscal biennium. The changes proposed by the State Board of Education shall be subject to the approval of the General Assembly.
BASE BUDGET REDUCTION TO DEPARTMENT OF PUBLIC INSTRUCTION
REPLACEMENT SCHOOL BUSES FUNDS/safety rules for school activity buses
(1) The local board of education must use the funds only to make the first, second, or third year's payment on a financing contract entered into pursuant to G.S. 115C-528.
(2) The term of a financing contract entered into under this section shall not exceed three years.
(3) The local board of education must purchase the buses only from vendors selected by the State Board of Education and on terms approved by the State Board of Education.
(4) The State Board of Education shall solicit bids for the direct purchase of buses and for the purchasing of buses through financing. The State Board of Education may solicit separate bids for financing if the Board determines that multiple financing options are more cost-efficient.
(5) A bus financed pursuant to this section must meet all federal motor vehicle safety regulations for school buses.
(6) Any other condition the State Board of Education considers appropriate.
EXPENDITURES FOR DRIVING ELIGIBILITY CERTIFICATES
DISCREPANCIES BETWEEN ANTICIPATED AND ACTUAL ADM
The allotments reduced pursuant to this subsection shall include only those allotments that may be increased pursuant to the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual.
CHARTER SCHOOL ADVISORY COMMITTEE/CHARTER SCHOOL EVALUATION
STUDY OF ISSUES RELATED TO RAPID GROWTH IN STUDENT POPULATION
MENTOR TEACHER FUNDS MAY BE USED FOR FULL-TIME MENTORS
SECTION 7.30.(a) The State Board of Education shall grant flexibility to a local board of education regarding the use of mentor funds to provide mentoring support, provided the local board submits a detailed plan on the use of the funds to the State Board and the State Board approves that plan. The plan shall include information on how all mentors in the local school administrative unit have been or will be adequately trained to provide mentoring support.
Local boards of education shall use funds allocated for mentor teachers to provide mentoring support to all State-paid newly certified teachers, second-year teachers who were assigned mentors during the prior school year, and entry-level instructional support personnel who have not previously been teachers.
SECTION 7.30.(b) The State Board, after consultation with the Professional Teaching Standards Commission, shall adopt standards for mentor training.
SECTION 7.30.(c) The Winston-Salem/Forsyth, Charlotte/Mecklenburg, and Wake County Public School systems may continue with their existing pilot mentor programs, but shall submit plans as required in subsection (a) of this section. These three local boards of education shall report as required in subsection (d) of this section.
SECTION 7.30.(d) Each local board of education with a plan approved pursuant to subsection (a) of this section shall report to the State Board on the impact of its mentor program on teacher retention. The State Board shall analyze these reports to determine the characteristics of mentor programs that are most effective in retaining teachers and shall report its findings to the Joint Legislative Education Oversight Committee by October 15, 2004.
SECTION 7.31. No State funds appropriated for distribution to ExplorNet, Incorporated, shall be disbursed until the State Auditor and the Office of State Budget and Management certify that ExplorNet, Incorporated, has received an audit report for the 2001-2002 fiscal year that is free of audit exceptions. A copy of the certification by the State Auditor and the Office of State Budget and Management shall be sent to the Joint Legislative Education Oversight Committee and to the Joint Legislative Commission on Governmental Operations.
The State Board of Education shall make recommendations on the ratio of school nurses to student populations that it considers necessary, as well as recommendations for the provision of school nurse services, to the Joint Legislative Education Oversight Committee by February 15, 2004.
TRANSFER OF PUBLIC SCHOOL CAPITAL FUND
SECTION 7.33.(a) The Public School Building Capital Fund is transferred from the Office of State Budget and Management to the Department of Public Instruction, as if by a Type I transfer as defined in G.S. 143A-6, with all the elements of such a transfer.
SECTION 7.33.(b) G.S. 115C-546.1(c) reads as rewritten:
"(c) The Fund shall be
administered by the Office of State Budget and Management. Department
of Public Instruction."
FUNDS FOR REGIONAL EDUCATIONAL SERVICES ALLIANCES
SECTION 7.34. Local boards of education may use up to ten percent (10%) of State funds allocated for staff development to contract with Regional Education Services Alliances without such funds being subject to the provisions of G.S. 115C-105.30.
Additional funds distributed pursuant to G.S. 115C-105.30 may also be used to contract with Regional Education Services Alliances.
PILOT PROGRAMS ON FINANCIAL LITERACY
SECTION 7.35. The State Board of Education shall establish a pilot program authorizing and assisting up to five local school administrative units in the implementation of programs on teaching personal financial literacy. The purpose of the pilot program is to determine the best methods of equipping students with the knowledge and skills they need, before they become self-supporting, to make critical decisions regarding their personal finances. The components of personal financial literacy covered in the pilot program shall include, at a minimum, consumer financial education, personal finance, and personal credit.
Prior to selecting the pilot units, the State Board of Education shall develop a curriculum, materials, and guidelines for local boards of education to use in implementing a program of instruction on personal financial literacy. The State Board shall also provide information to local boards of education on securing public and private grant funds and on using other public and private assets to implement the instructional program.
The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to January 1, 2004, on the implementation of the program in the pilot units.
credit for high school students taking community college courses
review of teacher certification process
SECTION 7.39. Section 7.18 of S.L. 2002-126 reads as rewritten:
"SECTION 7.18.(a) The State Board of
Education, in consultation with the Board of Governors of The University of
North Carolina and the Education Cabinet, shall review teacher preparation
programs and the continuing certification process to determine how these
programs can be modified to enhance the continuing teacher certification
process and to reduce the burden the continuing certification process places on
newly certified teachers. This evaluation shall consider strategies for
streamlining the current continuing certification process and reducing the
amount of documentation required in the applicant's portfolio. process.
The State Board of Education shall suspend the portfolio
requirement for all teachers who are required, under the current law, to submit
portfolios from August 1, 2002, through June 30, 2004. Teachers who are not
required to submit portfolios during the period the portfolio requirement is
suspended shall be subject to interim requirements adopted by the State Board
and shall complete the interim requirements. The State Board of Education shall
make every effort to insure that any interim requirements do not require
significant and unnecessary paperwork, effort, and administrative burden. Prior
to implementation of the interim requirements, the State Board of Education
shall report to the Joint Legislative Education Oversight Committee on the
proposed requirements.
(1) Review the administration and implementation of the certification programs and identify significant strengths and weaknesses of the programs;
(2) Identify issues related to administration, staffing, and paperwork at the school, local, and State levels;
(3) Investigate and identify communication concerns about the certification programs between the school, local, and State levels;
(4) Randomly survey and interview participating teachers and administrators regarding key aspects of the certification programs and ways to improve them;
(5) Examine the possibility of making the programs more focused on and supportive of early teacher development and integrating them more appropriately into a teacher's daily work;
(6) Examine the
portfolios previously submitted and identify the elements that are most
troublesome to teachers, schools, and school systems;
(7) Identify
alternatives to the portfolio approach and ways to keep paperwork requirements
to a minimum;
(8) Review the State's mentor program and the mentor's role in support of certification efforts to determine whether the two programs are complementary;
(9) Examine the effect of the certification programs on teacher retention, using valid evidence; and
(10) Examine the impact the certification programs have on improving teaching practices, using valid evidence.
(1) Improve the administration and implementation of the certification programs, including improving the process for teachers;
(2) Resolve the
issues surrounding the portfolio process and the collection of professional
evidence during initial certification;
(3) Reduce paperwork and bureaucracy in initial certification, continuing certification, and recertification for teachers, schools, and school systems;
(4) Provide schools and districts incentives and flexibility to participate in more rigorous certification processes;
(5) Effectively use information regarding teacher supply and demand, standards and retention to inform policy decisions;
(6) Improve the relationship and coordination between the certification programs and mentoring programs;
(7) Provide appropriate sample work to teachers, including lesson plans, unit plans, and other professional work required during initial certification; and
(8) Provide ongoing program evaluation to monitor the quality of the programs and to inform policymakers.
The State Board shall use federal No Child Left Behind State
Grants for Improving Teacher Quality, to the extent possible, to cover the cost
of the consultant and study.
The State Board shall report the findings of the consultant
study and the recommendations required by this section to the Joint
Legislative Education Oversight Committee by January 1, 2004.March
15, 2004.
enhancement of character and civic education program
SECTION 7.40.(a) G.S. 115C-81 is amended by adding two new subsections to read:
"§ 115C-81. Basic Education Program.
…
(g2) Student Councils. - All high schools and middle schools shall be encouraged to have elected student councils through which students have input into policies and decisions that affect them. All other schools are encouraged to have student councils.
The purpose of these student councils is to build civic skills and attitudes such as participation in elections, discussion and debate of issues, and collaborative decision making. Schools shall encourage active, broad-based participation in these student councils.
(g3) Current Events. - Schools should encourage discussions of current events in a wide range of classes, especially social studies and language arts classes. All high schools and middle schools are encouraged to have at least two classes per grade level to offer interactive current events discussions at least every four weeks."
SECTION 7.40.(b) G.S. 115C-81(h1) reads as rewritten:
"(h1) In addition to the instruction under subsection (h) of this section, local boards of education are encouraged to include instruction on the following responsibilities:
(1) Respect for school personnel. - In the school environment, respect includes holding teachers, school administrators, and all school personnel in high esteem and demonstrating in words and deeds that all school personnel deserve to be treated with courtesy and proper deference.
(2) Responsibility for school safety. - Helping to create a harmonious school atmosphere that is free from threats, weapons, and violent or disruptive behavior; cultivate an orderly learning environment in which students and school personnel feel safe and secure; and encourage the resolution of conflicts and disagreements through peaceful means including peer mediation. Instruction in this responsibility should include a consistent and age-appropriate antiviolence message and a conflict resolution component for students in kindergarten through twelfth grade. These messages should include media-awareness education to help children recognize stereotypes and messages portraying violence.
(3) Service to others. - Engaging in meaningful service to their schools and their communities. Schools may teach service-learning by (i) incorporating it into their standard curriculum, or (ii) involving a classroom of students or some other group of students in one or more hands-on community-service projects. All schools are encouraged to provide opportunities for student involvement in community service or service-learning projects.
(4) Good citizenship. - Obeying the laws of the nation and this State; abiding by school rules; and understanding the rights and responsibilities of a member of a republic."
SECTION 7.40.(c) G.S. 115C-105.35 reads as rewritten:
"§ 115C-105.35. Annual performance goals.
The School-Based Management and Accountability Program shall (i) focus on student performance in the basics of reading, mathematics, and communications skills in elementary and middle schools, (ii) focus on student performance in courses required for graduation and on other measures required by the State Board in the high schools, and (iii) hold schools accountable for the educational growth of their students. To those ends, the State Board shall design and implement an accountability system that sets annual performance standards for each school in the State in order to measure the growth in performance of the students in each individual school. For purposes of this Article, beginning school year 2002-2003, the State Board shall include a "closing the achievement gap" component in its measurement of educational growth in student performance for each school. The "closing the achievement gap" component shall measure and compare the performance of each subgroup in a school's population to ensure that all subgroups as identified by the State Board are meeting State standards.
The State Board shall consider incorporating into the School-Based Management and Accountability Program a character and civic education component which may include a requirement for student councils."
VISITING INTERNATIONAL FACULTY
COMMUNITY COLLEGE FUNDING FLEXIBILITY
No more than two percent (2%) systemwide shall be transferred from faculty salaries without the approval of the State Board of Community Colleges. The State Board shall report on any such transfers above two percent (2%) systemwide to the Office of State Budget and Management and the Joint Legislative Commission on Governmental Operations at its next meeting.
FLEXIBILITY TO IMPLEMENT BUDGET REDUCTIONS
STATE BOARD OF COMMUNITY COLLEGE MANAGEMENT FLEXIBILITY
Each college shall report to the State Board of Community Colleges on the discretionary budget reductions it has identified for the college within 60 days of the date this act becomes law. No later than December 31, 2003, the State Board of Community Colleges shall make a summary report to the Office of State Budget and Management and the Fiscal Research Division on all reductions made by the colleges to achieve this reduction.
For fiscal year 2003-2004, the General Assembly urges local college administrators to make every effort to reduce spending whenever and wherever such budget reductions are appropriate and as long as the targeted reductions do not directly impact classroom services or those services that are identified in this act as a high-need area for the State. If reductions to the allotment categories listed in this paragraph are necessary in order to meet the reduction target, the local college administration shall submit an explanation of the anticipated impact of the reductions to student services along with the budget reductions to the State Board of Community Colleges.
By February 15, 2004, for fiscal year 2004-2005, the State Board of Community Colleges will determine the changes to the allotment categories to make such reductions permanent.
REGISTRATION FEES FOR OCCUPATIONAL CONTINUING EDUCATION OR FOCUSED INDUSTRIAL TRAINING
SECTION 8.6.(b) This section becomes effective June 30, 2003.
SCHOLARSHIPS FOR PROSPECTIVE TEACHERS
SECTION 8.8. Of the funds appropriated in this act to the State Board of Community Colleges, the State Board may use up to one million dollars ($1,000,000) for a nonrecurring grant to the North Carolina Community College Foundation. These funds shall be used to match the Glaxo Smith Kline Foundation challenge grant establishing a two million dollar ($2,000,000) endowment for the creation of a new scholarship program for prospective teachers enrolled in baccalaureate completion programs at State community college campuses and for the development of teacher preparation courses.
This provision is contingent upon receipt of one million dollars ($1,000,000) for this purpose from the Glaxo Smith Kline Foundation and applies only to the 2003-2004 fiscal year.
MANAGEMENT INFORMATION SYSTEM FUNDS
SECTION 8.9.(a) Funds appropriated for the Community Colleges System Office Management Information System shall not revert at the end of the 2002-2003 and 2003-2004 fiscal years but shall remain available until expended.
SECTION 8.9.(b) This section becomes effective June 30, 2003.
USE OF LITERACY FUNDS FOR LITERACY LABS
SECTION 8.10. Notwithstanding any other provision of law, a local community college may use up to five percent (5%) of the Literacy Funds allocated to it by the State Board of Community Colleges to procure computers for literacy labs.
FACULTY AND PROFESSIONAL STAFF SALARIES
SECTION 8.11. Three million two hundred fifty thousand dollars ($3,250,000) in the Reserve for Compensation Increases in Section 2.1 of this act shall be used to increase faculty and professional staff salaries by an average of one-half percent (0.5%). These increases are in addition to the one-time, lump sum compensation bonus provided by Section 30.11 of this act, and shall be calculated on the average salaries prior to the issuance of the compensation bonus. Colleges may provide additional increases from funds available.
The State Board of Community Colleges shall adopt rules to ensure that these funds are used only to move faculty and professional staff to the respective national averages. The funds shall not be transferred by the State Board or used for any other budget purpose by the community colleges.
EVALUATION OF THE COMPREHENSIVE ARTICULATION AGREEMENT
SECTION 8.12.(a) The General Assembly finds that (i) there is a general sentiment expressed by students that the Comprehensive Articulation Agreement adopted by the Board of Governors of The University of North Carolina and the State Board of Community Colleges should be improved and (ii) over the past five years, there have been many suggestions for improving the Comprehensive Articulation Agreement as well as recommendations for new directions in which the Comprehensive Articulation Agreement should be developed.
SECTION 8.12.(b) The Joint Legislative Education Oversight Committee shall contract with a credible independent source, individual, or organization to study the Comprehensive Articulation Agreement. The contractor shall not be (i) a current employee of The University of North Carolina, Office of the President, the North Carolina Community College System, or any of the North Carolina independent schools/colleges participating in the Comprehensive Articulation Agreement or (ii) a current or past member of the Transfer Advisory Committee.
SECTION 8.12.(c) The study by the contractor shall:
(1) Be consistent with the standards of the Southern Association of Colleges and Schools, Commission on Colleges, on educational quality and institutional effectiveness;
(2) Be designed to provide an accurate and credible assessment of the effectiveness of the Comprehensive Articulation Agreement during its initial five years of existence relative to the intent of its authorizing legislation;
(3) Be based on qualitative as well as quantitative information and data;
(4) Take no more than four months from initiation to completion; and
(5) Include input from college transfer students, counselors, faculty, and administration from both systems.
SECTION 8.12.(d) The contractor's report shall:
(1) Adequately reflect the study's methodology, sources of information, purpose and scope, analyses, evaluative assessments, recommendations, and conclusions;
(2) State any known deficiencies or limitations of the study;
(3) Be presented in both a printed form and an electronic version; and
(4) Provide recommendations for improving the Comprehensive Articulation Agreement.
SECTION 8.12.(e) The contractor shall submit a written progress report every four weeks to the Joint Legislative Education Oversight Committee, the vice-president of academic affairs of The University of North Carolina, Office of the President, the vice-president of academic affairs of the North Carolina Community College System Office, and the cochairs of the Transfer Advisory Committee. The contractor shall complete the report within four months. At the completion of the study, the contractor shall submit a draft of the report document to the Joint Legislative Education Oversight Committee, the vice-president of academic affairs of The University of North Carolina, Office of the President, the vice-president of academic affairs of the North Carolina Community College System Office, and the cochairs of the Transfer Advisory Committee for review.
SECTION 8.12.(f) Within 30 days of completing the study, the contractor shall submit a final report to the Joint Legislative Education Oversight Committee, the vice-president of academic affairs of The University of North Carolina, Office of the President, the vice-president of academic affairs of the North Carolina Community College System Office, and the cochairs of the Transfer Advisory Committee. The Joint Legislative Education Oversight Committee, vice-president of academic affairs of The University of North Carolina, Office of the President, and the vice-president of academic affairs of the North Carolina Community College System Office may, in their discretion, schedule a formal presentation of the report when it is submitted.
SECTION 8.12.(g) The University of North Carolina, Office of the President, and the North Carolina Community College System shall provide the contractor with access to and use of information databases to the extent that such access and use is necessary for the study and does not violate legal and ethical codes or create disruptions of normal operations.
SECTION 8.12.(h) The University of North Carolina, Office of the President, and the North Carolina Community College System shall each transfer thirty-five thousand dollars ($35,000) to the Joint Legislative Education Oversight Committee to carry out this study.
SECTION 8.13. Of the funds appropriated in this act for the State Board of Community Colleges for the 2003-2004 fiscal year, the sum of one hundred twenty-five thousand dollars ($125,000) shall be used for a nonrecurring grant to the North Carolina Community College Foundation provided that a like amount is provided by the North Carolina Automotive Dealers Association to match these funds on a dollar-for-dollar basis. The North Carolina Community College Foundation shall use these funds to provide incentive programming at the colleges that offer Automotive Systems Technology. The incentive programming shall consist of one or more of the following:
(1) Increasing awareness of careers available in the franchised automobile and truck industry in North Carolina;
(2) Increasing awareness within North Carolina's middle school and high school guidance counselors and workforce development coordinators;
(3) Increasing public awareness of teaching opportunities in North Carolina's high schools and community colleges in the area of automotive technology;
(4) Increasing opportunities in continuing education for automotive technology high school and community college instructors;
(5) Providing a program coordinator to work with the franchised car and truck dealers and with community college and high school automotive professionals to ensure that the automotive curriculum is uniform and appropriate; and
(6) Increasing resources to assist high schools and community colleges in gaining and maintaining certification for their respective automotive technology programs.
SECTION 8.14.(a) Article 3 of Chapter 115D of the General Statutes is amended by adding a new section to read:
"§ 115D-42. North Carolina Community Colleges Instructional Trust Fund.
(a) There is established the North Carolina Community Colleges Instructional Trust Fund. The purpose of this Trust Fund is to supplement the funds raised by community college foundations to enhance the academic missions of community colleges.
(b) The State Board of Community Colleges is authorized to allocate funds from the Instructional Trust Fund to the community colleges and to adopt rules to implement the provisions of this section.
(c) State funds from the Trust Fund and matching funds raised by foundations shall be used by the board of trustees of a community college only to enhance the academic mission of the college. State funds shall be used only for scholarships or financial aid for needy students.
Expenditures of the matching funds raised by foundations shall directly relate to education and shall be used only for:
(1) Resource center materials;
(2) Professional development of instructional faculty and staff in cases in which (i) professional development will improve the quality of performance provided by the employee and (ii) the employee makes a commitment to remain at the college for a prescribed period of time;
(3) Professional development of instructional faculty and staff in cases in which professional development is necessary to enhance the employee's ability to meet newly mandated instructional or performance requirements; and
(4) Other purposes authorized by the State Board of Community Colleges that are consistent with the college's mission.
(d) Every two dollars ($2.00) raised by the community college foundations for the Trust Fund during the 2003-2004 fiscal year shall be matched with one dollar ($1.00) of State funds. The maximum matching contribution from the State shall not exceed twenty-five thousand dollars ($25,000) for each of the 58 community colleges. These funds shall be reserved for each community college and held in escrow in the Trust Fund. A community college foundation may apply for matching funds after it raises twenty-five thousand dollars ($25,000). The chairperson of each community college foundation shall certify to the North Carolina Community College System Office that (i) new funds have been raised by the community college foundation to match the amount of funds held in escrow in the Trust Fund, (ii) the amount raised by the community college foundation has not been used previously for matching purposes, (iii) the amount raised by the college shall be used only as provided in subsection (c) of this section, and (iv) matching State funds shall be used only for scholarships or financial aid for needy students.
(e) The State Board of Community Colleges may request an audit of the State funds expended under this section from any community college foundation."
SECTION 8.14.(b) There is appropriated from the Escheat Fund to the State Board of Community Colleges the sum of one million four hundred fifty thousand dollars ($1,450,000) for the 2003-2004 fiscal year to provide matching State funds for the Community Colleges Instructional Trust Fund established in subsection (a) of this section.
FOCUSED INDUSTRIAL TRAINING FUNDS
SECTION 8.15. Notwithstanding any other provision of law, for the 2003-2004 fiscal year only, the State Board of Community Colleges may transfer up to one million four hundred fifty thousand dollars ($1,450,000) from New and Expanding Industry Training to Focused Industrial Training.
SECTION 8.16.(a) G.S. 116-143.3 reads as rewritten:
"§ 116-143.3. Tuition of active duty personnel in the armed services.
(a) Definitions. - For
purposes of this section the The following definitions apply in this
section:
(1) The term "armed services" shall mean the United States Air Force, Army, Coast Guard, Marine Corps, and Navy; the North Carolina National Guard; and any Reserve Component of the foregoing.
(2) The term "abode" shall mean the place where a person actually lives, whether temporarily or permanently; the term "abide" shall mean to live in a given place.
(3) The term "tuition assistance" shall be used as defined in the United States Department of Defense Directive 1322.8, implementing 10 U.S.C. § 2007.
(b) Any active duty
member of the armed services qualifying for admission to an institution of
higher education a community college under the jurisdiction of the State
Board of Community Colleges as defined in G.S. 116-143.1(a)(3) but
not qualifying as a resident for tuition purposes under G.S. 116-143.1 shall be
charged the out-of-State tuition rate; provided, that the out-of-State tuition
shall be forgiven to the extent that the out-of-State tuition rate exceeds any
amounts payable to the institution or the service member by the service
member's employer by reason of enrollment pursuant to such admission while the
member is abiding in this State incident to active military duty, plus the amount
that represents the percentage of the out-of-State tuition rate paid to the
institution or the service member by the service member's employer multiplied
by the in-State tuition rate and then subtracted from the in-State tuition
rate.
(b1) Any active duty member of the armed services qualifying for admission to a constituent institution of The University of North Carolina but not qualifying as a resident for tuition purposes under G.S. 116-143.1 shall be charged the maximum available tuition assistance as the required payment for tuition and mandatory fees not to exceed the established out-of-state tuition and mandatory fee rates. The Board of Governors of The University of North Carolina shall determine which mandatory fees apply to active duty members of the armed services attending The University of North Carolina.
(b2) Any active duty
member of the armed services who does not qualify for any payment by the
member's employer pursuant to subsections (b) or (b1) of this section
shall be eligible to be charged the in-State tuition rate and shall pay the
full amount of the in-State tuition rate.rate and applicable
mandatory fees.
(c) Any dependent relative of a member of the armed services who is abiding in this State incident to active military duty, as defined by the Board of Governors of The University of North Carolina and by the State Board of Community Colleges while sharing the abode of that member shall be eligible to be charged the in-State tuition rate, if the dependent relative qualifies for admission to an institution of higher education as defined in G.S. 116-143.1(a)(3). The dependent relatives shall comply with the requirements of the Selective Service System, if applicable, in order to be accorded this benefit. In the event the member of the armed services removes his abode from North Carolina during an academic year, the dependent relative shall continue to be eligible for the in-State tuition rate during the remainder of that academic year.
(d) The burden of proving entitlement to the benefit of this section shall lie with the applicant therefor.
(e) A person charged less
than the out-of-State out-of-state tuition rate solely by reason
of this section shall not, during the period of receiving that benefit, qualify
for or be the basis of conferring the benefits benefit of G.S.
116-143.1(g), (h), (i), (j), (k), or (1)."
SECTION 8.16.(b) G.S. 115D-39 reads as rewritten:
"§ 115D-39. Student tuition and fees.
(a) The State Board of Community Colleges shall fix and regulate all tuition and fees charged to students for applying to or attending any institution pursuant to this Chapter.
The receipts from all student tuition and fees, other than student activity fees, shall be State funds and shall be deposited as provided by regulations of the State Board of Community Colleges.
The legal resident limitation with respect to tuition, set forth in G.S. 116-143.1 and G.S. 116-143.3, shall apply to students attending institutions operating pursuant to this Chapter; provided, however, that when an employer other than the armed services, as that term is defined in G.S. 116-143.3, pays tuition for an employee to attend an institution operating pursuant to this Chapter and when the employee works at a North Carolina business location, the employer shall be charged the in-State tuition rate; provided further, however, a community college may charge in-State tuition to up to one percent (1%) of its out-of-state students, rounded up to the next whole number, to accommodate the families transferred by business, the families transferred by industry, or the civilian families transferred by the military, consistent with the provisions of G.S. 116-143.3, into the State. Notwithstanding these requirements, a refugee who lawfully entered the United States and who is living in this State shall be deemed to qualify as a domiciliary of this State under G.S. 116-143.1(a)(1) and as a State resident for community college tuition purposes as defined in G.S. 116-143.1(a)(2). Also, a nonresident of the United States who has resided in North Carolina for a 12-month qualifying period and has filed an immigrant petition with the United States Immigration and Naturalization Service shall be considered a State resident for community college tuition purposes.
(b) In addition, any person lawfully admitted to the United States who satisfied the qualifications for assignment to a public school set out under G.S. 115C-366 and graduated from the public school to which the student was assigned shall also be eligible for the State resident community college tuition rate. This subsection does not make a person a resident of North Carolina for any other purpose."
TUITION MODIFICATIONS/nonprofit sponsorship of community college student
SECTION 8.16A.(a) G.S. 115D-39 is amended by adding a new subsection to read:
"(c) In addition, a person sponsored under this subsection who is lawfully admitted to the United States is eligible for the State resident community college tuition rate. For purposes of this subsection, a North Carolina nonprofit entity is a charitable or religious corporation as defined in G.S. 55A-1-40 that is incorporated in North Carolina and that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code, or a civic league incorporated in North Carolina under Chapter 55A of the General Statutes that is exempt from taxation under section 501(c)(4) of the Internal Revenue Code. A nonresident of the United States is sponsored by a North Carolina nonprofit entity if the student resides in North Carolina while attending the community college and the North Carolina nonprofit entity provides a signed affidavit to the community college verifying that the entity accepts financial responsibility for the student's tuition and any other required educational fees. Any North Carolina nonprofit entity that sponsors a nonresident of the United States under this subsection may sponsor no more than five nonresident students annually under this subsection. This subsection does not make a person a resident of North Carolina for any other purpose."
SECTION 9.2.(a) There is appropriated from the Escheat Fund to the Board of Governors of The University of North Carolina the sum of twenty-three million seven hundred fifty thousand dollars ($23,750,000) for each year of the 2003-2005 fiscal biennium and to the State Board of Community Colleges the sum of ten million two hundred sixty-two thousand eight hundred six dollars ($10,262,806) for each year of the 2003-2005 fiscal biennium. These funds shall be allocated by the State Educational Assistance Authority for need-based student financial aid in accordance with G.S. 116B-7 and this act.
SECTION 9.2.(b) The Director of the Budget shall include General Fund appropriations in the amounts provided in subsection (a) of this section in the proposed 2005-2007 fiscal biennium continuation budget for the purposes provided in G.S. 116B-7.
SECTION 9.2.(c) The State Education Assistance Authority (SEAA) shall perform all of the administrative functions necessary to implement the program of financial aid. The SEAA shall conduct periodic evaluations of expenditures of the scholarship programs to determine if allocations are utilized to ensure access to institutions of higher learning and to meet the goals of the respective programs. The SEAA may make recommendations for redistribution of funds to The University of North Carolina and the President of the Community College System regarding their respective scholarship programs, who then may authorize redistribution of unutilized funds for a particular fiscal year.
SECTION 9.2.(d) All obligations to students for uses of the funds set out in subsection (a) of this section that were made prior to the effective date of this section shall be fulfilled as to students who remain eligible under the provisions of the respective programs.
UNC Bond Project Modifications
(1) In the portion entitled "Pearson Cafeteria - Comprehensive Renovation" under North Carolina Central University, by deleting "Comprehensive Renovation" and by substituting "Expansion" and by adding $7,730,700 for the project so that it reads "Pearson Cafeteria - Expansion…$8,994,300".
(2) In the portion under North Carolina Central University, by deleting "Old Senior Dorm - Conversion to Academic Use…$2,130,700".
(3) In the portion entitled "Farrison-Newton Building - Comprehensive Renovation of Classroom Building" under North Carolina Central University, by decreasing by $5,600,000 the $7,048,700 for the project so that it reads "Farrison-Newton Building - Comprehensive Renovation of Classroom Building…$1,448,700".
SECTION 9.3.(b1) With the approval of The Board of Governors of The University of North Carolina, North Carolina Central University may transfer funds from one bond project to another to make infrastructure improvements and repairs within buildings for the remediation of mold on campus.
(1) In the portion entitled "Anderson Center - Comprehensive Renovation & Change of Use for Early Childhood/Gerontology Programs" under Winston-Salem State University, by deleting "& Change of Use for Early Childhood/Gerontology Programs" and by decreasing by $1.9 million the $6,917,900 for the project so that it reads "Anderson Center - Comprehensive Renovation…$5,017,900".
(2) In the portion under Winston-Salem State University, by adding a new project "Coltrane Hall - Renovation to House Gerontology…$400,000".
(3) In the portion under Winston-Salem State University, by adding a new project "New Facility for the Early Childhood Program…$1,500,000".
SCHOOL OF SCIENCE MATH/COLLEGE SCHOLARSHIPS
SECTION 9.4.(a) Article 29 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116-238.1. Full tuition grant for graduates who attend a State university.
(a) There is granted to each State resident who graduates from the North Carolina School of Science and Mathematics and who enrolls as a full-time student in a constituent institution of The University of North Carolina a sum to be determined by the General Assembly as a tuition grant. The tuition grant shall be for four consecutive academic years and shall cover the tuition cost at the constituent institution in which the student is enrolled. The tuition grant shall be distributed to the student as provided by this section.
(b) The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section. The State Education Assistance Authority shall not approve any grant until it receives proper certification from the appropriate constituent institution that the student applying for the grant is an eligible student. Upon receipt of the certification, the State Education Assistance Authority shall remit at the times it prescribes the grant to the constituent institution on behalf, and to the credit, of the student.
(c) In the event a student on whose behalf a grant has been paid is not enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority.
(d) In the event there are not sufficient funds to provide each eligible student with a full grant:
(1) The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2) Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
(e) Any remaining funds shall revert to the General Fund."
SECTION 9.4.(b) This section applies to students graduating in the 2003-2004 academic year and each subsequent academic year.
FILM INDUSTRY FEASIBILITY STUDY
SECTION 9.5. The Board of Governors of The University of North Carolina shall conduct a feasibility study to assess the strategic opportunities in the arts and entertainment industry in Forsyth County and its environs in the creation of programs, facilities, job opportunities, and tourism demand related to the film industry. The study shall include, but not be limited to: (i) the development of a program in digital media, and (ii) the development of a tourist destination film industry studio backlot.
The Board of Governors shall consult with the faculty and staff of the North Carolina School of the Arts and other experts in the arts and entertainment fields in conducting the feasibility study. The Board of Governors shall report the results of the study and any recommendations the Board makes related to the study to the 2003 Regular Session of the General Assembly by April 1, 2004.
AREA HEALTH EDUCATION CENTER (AHEC) Funds
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
PETROLEUM OVERCHARGE FUNDS ALLOCATION
(1) Coordinate the development of departmental policies, plans, and rules, in consultation with the Divisions of the Department.
(2) Development of a departmental process for the development and implementation of new policies, plans, and rules.
(3) Development of a departmental process for the review of existing policies, plans, and rules to ensure that departmental policies, plans, and rules are relevant.
(4) Coordination and review of all departmental policies before dissemination to ensure that all policies are well-coordinated within and across all programs.
(5) Implementation of ongoing strategic planning that integrates budget, personnel, and resources with the mission and operational goals of the Department.
(6) Review, disseminate, monitor, and evaluate best practice models.
SECTION 10.2.(b) Under the direction of the Secretary of Health and Human Services, the Director of the Office of Policy and Planning shall have the authority to direct Divisions, offices, and programs within the Department to conduct periodic reviews of policies, plans, and rules and shall advise the Secretary when it is determined to be appropriate or necessary to modify, amend, and repeal departmental policies, plans, and rules. All policy and management positions within the Office of Policy and Planning are exempt positions as that term is defined in G.S. 126-5.
WEATHERIZATION ASSISTANCE PROGRAM
"Part 9. Weatherization Assistance Program and Heating/Air Repair and Replacement Program.
"§ 108A-70.30. Weatherization Assistance Program and Heating/Air Repair and Replacement Program.
The Department may administer the Weatherization Assistance Program for Low-Income Families and the Heating/Air Repair and Replacement Program functions. Nothing in this Part shall be construed as obligating the General Assembly to appropriate funds for the Program or as entitling any person to services under the Program."
NONMEDICAID REIMBURSEMENT CHANGES
The Department of Health and Human Services may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one, the Department of Health and Human Services may negotiate with providers of medical services under the various Department of Health and Human Services programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes: contracts or agreements for medical services and purchases of medical equipment and other medical supplies. These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents, and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs shall be as follows:
Medical Eye Rehabilitation Except
Family Size Care Adults DSB Over 55 Grant Other
1 $4,860 $8,364 $4,200
2 5,940 10,944 5,300
3 6,204 13,500 6,400
4 7,284 16,092 7,500
5 7,821 18,648 7,900
6 8,220 21,228 8,300
7 8,772 21,708 8,800
8 9,312 22,220 9,300
The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. The eligibility level for adults 55 years of age or older who qualify for services through the Division of Services for the Blind, Independent Living Rehabilitation Program, shall be two hundred percent (200%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. The eligibility level for adults in the Atypical Antipsychotic Medication Program in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall be one hundred fifty percent (150%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. Additionally, those adults enrolled in the Atypical Antipsychotic Medication Program who become gainfully employed may continue to be eligible to receive State support, in decreasing amounts, for the purchase of atypical antipsychotic medication and related services up to three hundred percent (300%) of the poverty level.
State financial participation in the Atypical Antipsychotic Medication Program for those enrollees who become gainfully employed is as follows:
Income State Participation Client Participation
(% of poverty)
0-150% 100% 0%
151-200% 75% 25%
201-250% 50% 50%
251-300% 25% 75%
300% and over 0% 100%
The Department of Health and Human Services shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department.
SENIOR CARES PROGRAM ADMINISTRATION
BUTNER COMMUNITY LAND RESERVATION
"Approximately 2 acres, on the east side it borders Central Avenue with a line running along the Wallace Bradshur property on the north back to the tree line next to the ADATC. From there it follows the tree line south and west to and including the softball field. From the softball field it turns east to the State Employees Credit Union and follows the Credit Union property on the south side back to Central Avenue."
This land shall be reserved and dedicated for the project which shall be funded with contributions from Granville County, contributions from the residents of the Butner Reservation, the use of cablevision franchise rebate funds received by the Department of Health and Human Services on behalf of the Butner Reservation, and other public and private sources.
DHHS CENTRALIZE INFORMATION TECHNOLOGY OPERATIONS
SECTION 10.8A.(a) The Department of Health and Human Services shall conduct a thorough, department-wide examination and analysis of its Information Technology (IT) infrastructure, including IT expenditures and management functions. The purpose of the examination is to enable the General Assembly and the Office of State Budget and Management to readily determine the amount of State funds being expended annually on each and all IT functions. As part of this examination, the Department shall review IT contracts with outside vendors, including the adequacy of contract management, and shall consider the implementation of performance measures in the development of future IT contracts. Upon completion of its examination and analysis, the Department shall develop a plan for the establishment of a Central IT Operations Unit encompassing all IT operations and functions that are common to all divisions, offices, and programs of the Department. The Central IT Operations Unit shall be organized such that all IT expenditures and personnel are readily identifiable. The Department may exclude from the Central IT Operations Unit those IT functions that are unique to one or more individual divisions, offices, or programs, provided that such separate IT functions are readily identifiable in terms of expenditures and personnel and that the separation allows for combining the expenditures and personnel data with expenditures and personnel data of the Central IT Operations Unit. The Department shall identify all excluded IT functions and provide reasons why it is more beneficial to the State to exclude those functions from the Central IT Operations Unit.
SECTION 10.8A.(b) The Office of State Budget and Management and the Department of Health and Human Services shall identify the amount of State appropriations necessary to fully fund from the General Fund the current budget for the Division of Information Resources. Having determined the amount of General Fund dollars needed, the Office of State Budget and Management shall develop and recommend a plan for providing the necessary funds.
SECTION 10.8A.(c) The Department of Health and Human Services shall report on the development of the Central IT Operations Unit 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 by January 1, 2004. The Office of State Budget and Management shall report on the identification of funds required under subsection (b) of this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division by January 1, 2004.
EDUCATION AND AWARENESS OF INFANT HOMICIDE PREVENTION ACT
SECTION 10.8B.(a) The Department of Health and Human Services, Division of Public Health and the Division of Social Services, shall incorporate education and awareness of the Infant Homicide Prevention Act pursuant to S.L. 2001-291, into other State-funded programs at the local level.
SECTION 10.8B.(b) The Department shall report on its activities to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division not later than April 1, 2004.
MEDICAL CARE COMMISSION TEMPORARY RULE-MAKING AUTHORITY EXTENDED
SECTION 10.8C. Section 6(d) of S.L. 2002-160 reads as rewritten:
"SECTION 6.(d) Notwithstanding 26 NCAC 2C
.0102(11), the Commission for Health Services and the Medical Care
Commission may adopt temporary rules as provided in this section until 1 July 2003.2004."
"§ 90-85.21B. Unlawful practice of pharmacy.
It shall be unlawful for any person, firm, or corporation not licensed or registered under the provisions of this Article to:
(1) Use in a trade name, sign, letter, or advertisement any term, including 'drug', 'pharmacy', 'prescription drugs', 'prescription', 'Rx', or 'apothecary', that would imply that the person, firm, or corporation is licensed or registered to practice pharmacy in this State.
(2) Hold himself or herself out to others as a person, firm, or corporation licensed or registered to practice pharmacy in this State."
EFFECTIVE DATE OF LONG-TERM CARE CRIMINAL RECORD checks for employment positions
IMPLEMENT A PILOT PROJECT FOR LONG-TERM CARE COMMUNITY SERVICE COORDINATION
SUBPART 2. DIVISION OF MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES
MENTAL HEALTH, DEVELOPMENTAL DISABILITY, AND SUBSTANCE ABUSE SERVICES TRUST FUND FOR SYSTEM REFORM BRIDGE AND CAPITAL FUNDING NEEDS AND OLMSTEAD
EXTEND MENTAL HEALTH CONSUMER ADVOCACY PROGRAM CONTINGENT UPON FUNDS APPROPRIATED BY THE 2005 GENERAL ASSEMBLY
"SECTION 4. Sections 1.1 through 1.21(b) of this
act become effective July 1, 2002. Section 2 of this act becomes effective only
if funds are appropriated by the 2003 2005 General Assembly for
that purpose. Section 2 of this act becomes effective July 1 of the fiscal year
for which funds are appropriated by the 2003 2005 General
Assembly for that purpose. The remainder of this act is effective when it
becomes law."
SUBSTANCE ABUSE PREVENTION SERVICES REPORTING
TRANSITION PLANNING FOR STATE PSYCHIATRIC HOSPITALS
SECTION 10.12.(a) In keeping with the United States Supreme Court decision in Olmstead vs. L.C. & E.W. and State policy to provide appropriate services to clients in the least restrictive and most appropriate environment, the Department of Health and Human Services shall develop and implement a plan for the construction of a replacement facility for Dorothea Dix Hospital and for the transition of patients to the community or to other long-term care facilities, as appropriate. The goal is to develop mechanisms and identify resources needed to enable patients and their families to receive the necessary services and supports based on the following guiding principles:
(1) Individuals shall be provided acute psychiatric care in non-State facilities when appropriate.
(2) Individuals shall be provided acute psychiatric care in State facilities only when non-State facilities are unavailable.
(3) Individuals shall receive evidenced-based psychiatric services and care that are cost-efficient.
(4) The State shall minimize cost shifting to other State and local facilities or institutions.
SECTION 10.12.(b) The Department of Health and Human Services shall conduct an analysis of the individual patient service needs and shall develop and implement an individual transition plan, as appropriate, for patients in each hospital. The State shall ensure that each individual transition plan, as appropriate, shall take into consideration the availability of appropriate alternative placements based on the needs of the patient and within resources available for the mental health, developmental disabilities, and substance abuse services system. In developing each plan, the Department shall consult with the patient and the patient's family or other legal representative.
SECTION 10.12.(c) In accordance with the plan established in subsections (a) and (b) of this section, any nonrecurring savings in State appropriations that result from reductions in beds or services shall be placed in the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs. These funds shall be used to facilitate the transition of clients into appropriate community-based services and supports in accordance with G.S. 143-15.3D. Recurring savings realized through implementation of this section shall be retained by the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, (i) for implementation of subsections (a) and (b) of this section and (ii) to support the recurring costs of additional community-based placements from Division facilities in accordance with Olmstead vs. L.C. & E.W.
SECTION 10.12.(d) The Department of Health and Human Services shall submit reports on the status of implementation of this section to the Joint Legislative Commission on Governmental Operations, the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. These reports shall be submitted on December 1, 2003, and May 1, 2004.
COMPREHENSIVE TREATMENT SERVICES PROGRAM
SECTION 10.13. The Department of Health and Human Services shall report on its continuing implementation of the Comprehensive Treatment Services Program established pursuant to Section 21.60 of S.L. 2001-424. The Department shall submit an interim report on December 1, 2003, and a final report not later than April 1, 2004, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
MENTAL RETARDATION CENTER DOWNSIZING
SECTION 10.14.(a) In accordance with the Department of Health and Human Services' plan for downsizing the State's regional mental retardation facilities by four percent (4%) each year, the Department shall implement cost-containment and reduction strategies to ensure the corresponding financial and staff downsizing of each facility. The Department shall manage the client population of the mental retardation centers in order to ensure that placements for ICF/MR level of care shall be made in non-State facilities. Admissions to State ICF/MR facilities are permitted only as a last resort and only upon approval of the Department. The corresponding budgets for each of the State mental retardation centers shall be reduced and positions shall be eliminated as the census of each facility decreases. At no time shall mental retardation center positions be transferred to other units within a facility or assigned nondirect care activities such as outreach.
(1) Nonrecurring savings shall be placed in the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs and shall be used to facilitate the transition of clients into appropriate community-based services and support in accordance with G.S. 143-15.3D; and
(2) Recurring savings realized through implementation of this section shall be retained by the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, to support the recurring costs of additional community-based placements from Division facilities in accordance with Olmstead vs. L.C. & E.W. In determining the savings in this section, savings shall include all savings realized from the downsizing of the State mental retardation centers including both the savings in direct State appropriations in the budgets of the State mental retardation centers as well as the savings in the State matching portion of reduced Medicaid payments associated with downsizing.
MENTAL RETARDATION CENTER TRANSITION PLAN
SECTION 10.15.(a) The Department of Health and Human Services shall develop and implement a plan for the reorganization of outreach services performed by the State mental retardation centers. The plan shall provide for the elimination of self-referrals by the mental retardation centers and shall include the following:
(1) The area and county mental health programs shall have exclusive authority for referring to the mental retardation centers persons in the community who are in need of specialized services.
(2) The mental retardation centers shall coordinate the transition of residents from the mental retardation centers to area and county mental health programs, and shall provide technical assistance to community service providers and families who care for transitioned residents, and to others in the community, as appropriate, for the purpose of furthering community services and placement.
(3) The method for allocating savings in State appropriations from the mental retardation centers across the area and county mental health programs.
SECTION 10.15.(b) In accordance with the plan established in subsection (a) of this section, any recurring and nonrecurring savings in State appropriations that result from the transfer of referral activities in the mental retardation centers to area and county mental health programs shall be transferred from the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to area and county mental health programs for referral activities.
SECTION 10.15.(c) The Department of Health and Human Services shall report on the implementation of this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. This report shall be submitted on February 1, 2004.
SERVICES TO MULTIPLY DIAGNOSED ADULTS
SECTION 10.16.(a) In order to ensure that multiply-diagnosed adults are appropriately served by the mental health, developmental disabilities, and substance abuse services system, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall do the following with respect to services provided to these adults:
(1) Implement the following guiding principles for the provision of services:
a. Service delivery system must be outcome oriented and evaluation based.
b. Services should be delivered as close as possible to the consumer's home.
c. Services selected should be those that are most efficient in terms of cost and effectiveness.
d. Services should not be provided solely for the convenience of the provider or the client.
e. Families and consumers should be involved in decision making throughout treatment planning and delivery.
(2) Provide those treatment services that are medically necessary.
(3) Implement utilization review of services provided.
SECTION 10.16.(b) The Department of Health and Human Services shall implement all of the following cost-reduction strategies:
(1) Preauthorization for all services except emergency services.
(2) Criteria for determining medical necessity.
(3) Clinically appropriate services.
(4) Not later than May 1, 2004, conduct a State review of (i) individualized service plans for former Thomas S. class members and for adults whose service plan exceeds one hundred thousand dollars ($100,000) to ensure that service plans focus on delivery of appropriate services rather than optimal treatment and habilitation plans and (ii) staffing patterns of residential services.
SECTION 10.16.(c) No State funds shall be used for the purchase of single-family or other residential dwellings to house multiply diagnosed adults.
SECTION 10.16.(d) The Department shall submit a progress report on implementation of this section not later than February 1, 2004, and a final report not later than May 1, 2004, 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.
AREA MENTAL HEALTH ADMINISTRATIVE COSTS
(1) Administrative costs for area mental health, developmental disabilities, and substance abuse services programs shall not exceed thirteen percent (13%).
(2) Administrative costs for counties administering mental health, developmental disabilities, and substance abuse services through a county program shall not exceed thirteen percent (13%).
(1) A description of the process used and the participants involved in complying with subsection (a) of this section.
(2) The guidelines developed under subsection (a) of this section.
(3) A description of local compliance initiatives and efforts including program or function consolidation.
(4) A list of area programs at or below the targeted thirteen percent (13%) for the 2003-2004 fiscal year.
(5) Projected savings in administrative costs as a result of implementation of the targeted limits required under this section.
PRIVATE AGENCY UNIFORM COST FINDING REQUIREMENT
SUBPART 3. DIVISION OF MEDICAL ASSISTANCE
Services and payment bases:
(1) Hospital-Inpatient. - Payment for hospital inpatient services will be prescribed in the State Plan as established by the Department of Health and Human Services.
(2) Hospital-Outpatient. - Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Health and Human Services.
(3) Nursing Facilities. - Payment for nursing facility services will be prescribed in the State Plan as established by the Department of Health and Human Services. Nursing facilities providing services to Medicaid recipients who also qualify for Medicare must be enrolled in the Medicare program as a condition of participation in the Medicaid Program. State facilities are not subject to the requirement to enroll in the Medicare program. Residents of nursing facilities who are eligible for Medicare coverage of nursing facility services must be placed in a Medicare certified bed. Medicaid shall cover facility services only after the appropriate services have been billed to Medicare. The Division of Medical Assistance shall allow nursing facility providers sufficient time from the effective date of this act to certify additional Medicare beds if necessary. In determining the date that the requirements of this subdivision become effective, the Division of Medical Assistance shall consider the regulations governing certification of Medicare beds and the length of time required for this process to be completed.
(4) Intermediate Care Facilities for the Mentally Retarded. - As prescribed in the State Plan as established by the Department of Health and Human Services.
(5) Drugs. - Drug costs as allowed by federal regulations plus a professional services fee per month excluding refills for the same drug or generic equivalent during the same month. Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills. Payments for drugs are subject to the provisions of subsection (h) of this section and to the provisions at the end of subsection (a) of this section or in accordance with the State Plan adopted by the Department of Health and Human Services consistent with federal reimbursement regulations. Payment of the professional services fee shall be made in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. The professional services fee shall be five dollars and sixty cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per prescription for brand name drugs. Adjustments to the professional services fee shall be established by the General Assembly.
(6) Physicians, Chiropractors, Podiatrists, Optometrists, Dentists, Certified Nurse Midwife Services, Nurse Practitioners. - Fee schedules as developed by the Department of Health and Human Services. Payments for dental services are subject to the provisions of subsection (g) of this section.
(7) Community Alternative Program, EPSDT Screens. - Payment to be made in accordance with the rate schedule developed by the Department of Health and Human Services.
(8) Home Health and Related Services, Private Duty Nursing, Clinic Services, Prepaid Health Plans, Durable Medical Equipment. - Payment to be made according to reimbursement plans developed by the Department of Health and Human Services.
(9) Medicare Buy-In. - Social Security Administration premium.
(10) Ambulance Services. - Uniform fee schedules as developed by the Department of Health and Human Services. Public ambulance providers will be reimbursed at cost.
(11) Hearing Aids. - Actual cost plus a dispensing fee.
(12) Rural Health Clinic Services. - Provider-based, reasonable cost; nonprovider-based, single-cost reimbursement rate per clinic visit.
(13) Family Planning. - Negotiated rate for local health departments. For other providers, see specific services, for instance, hospitals, physicians.
(14) Independent Laboratory and X-Ray Services. - Uniform fee schedules as developed by the Department of Health and Human Services.
(15) Optical Supplies. - One hundred percent (100%) of reasonable wholesale cost of materials.
(16) Ambulatory Surgical Centers. - Payment as prescribed in the reimbursement plan established by the Department of Health and Human Services.
(17) Medicare Crossover Claims. - By not later than October 1, 2005, the Department shall apply Medicaid medical policy to Medicare claims for dually eligible recipients. The Department shall pay an amount up to the actual coinsurance or deductible or both, in accordance with the State Plan, as approved by the Department of Health and Human Services.
(18) Physical Therapy and Speech Therapy. - Services limited to EPSDT- eligible children. Payments are to be made only to qualified providers at rates negotiated by the Department of Health and Human Services. Physical therapy (including occupational therapy) and speech therapy services are subject to prior approval and utilization review.
(19) Personal Care Services. - Payment in accordance with the State Plan approved by the Department of Health and Human Services.
(20) Case Management Services. - Reimbursement in accordance with the availability of funds to be transferred within the Department of Health and Human Services.
(21) Hospice. - Services may be provided in accordance with the State Plan developed by the Department of Health and Human Services.
(22) Other Mental Health Services. - Unless otherwise covered by this section, coverage is limited to:
a. Services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) when provided in agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services and reimbursement is made in accordance with a State Plan developed by the Department of Health and Human Services not to exceed the upper limits established in federal regulations, and
b. For children eligible for EPSDT services:
1. Licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, and nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, when Medicaid-eligible children are referred by the Carolina ACCESS primary care physician or the area mental health program, and
2. Institutional providers of residential services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) for children and Psychiatric Residential Treatment Facility services that meet federal and State requirements as defined by the Department.
Notwithstanding G.S. 150B-21.1(a), the Department of Health and Human Services may adopt temporary rules in accordance with Chapter 150B of the General Statutes further defining the qualifications of providers and referral procedures in order to implement this subdivision. Coverage policy for services defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services under sub-subdivisions a. and b.2 of this subdivision shall be established by the Division of Medical Assistance.
(23) Medically Necessary Prosthetics or Orthotics for EPSDT-Eligible Children. - Reimbursement in accordance with the State Plan approved by the Department of Health and Human Services.
(24) Health Insurance Premiums. - Payments to be made in accordance with the State Plan adopted by the Department of Health and Human Services consistent with federal regulations.
(25) Medical Care/Other Remedial Care. - Services not covered elsewhere in this section include related services in schools; health professional services provided outside the clinic setting to meet maternal and infant health goals; and services to meet federal EPSDT mandates. Services addressed by this subdivision are limited to those prescribed in the State Plan as established by the Department of Health and Human Services.
(26) Pregnancy-Related Services. - Covered services for pregnant women shall include nutritional counseling, psychosocial counseling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses.
Services and payment bases may be changed with the approval of the Director of the Budget.
Payment is limited to Medicaid-enrolled providers that purchase a performance bond in an amount not to exceed one hundred thousand dollars ($100,000) naming as beneficiary the Department of Health and Human Services, Division of Medical Assistance, or provide to the Department a validly executed letter of credit or other financial instrument issued by a financial institution or agency honoring a demand for payment in an equivalent amount. The Department may waive or limit the requirements of this paragraph for one or more classes of Medicaid-enrolled providers based on the provider's dollar amount of monthly billings to Medicaid or the length of time the provider has been licensed in this State to provide services. In waiving or limiting requirements of this paragraph, the Department shall take into consideration the potential fiscal impact of the waiver or limitation on the State Medicaid Program. The Department may adopt temporary rules in accordance with G.S. 150B-21.1 as necessary to implement this provision.
Reimbursement is available for up to 24 visits per recipient per year to any one or combination of the following: physicians, clinics, hospital outpatient, optometrists, chiropractors, and podiatrists. Prenatal services, all EPSDT children, emergency rooms, and mental health services subject to independent utilization review are exempt from the visit limitations contained in this paragraph. Exceptions may be authorized by the Department of Health and Human Services where the life of the patient would be threatened without such additional care. Any person who is determined by the Department to be exempt from the 24-visit limitation may also be exempt from the six-prescription limitation.
Categorically Needy Medically Needy
WFFA*
Family Standard Families and
Size of Need Children Income
Level AA, AB, AD*
1 $4,344 $2,172 $2,900
2 5,664 2,832 3,800
3 6,528 3,264 4,400
4 7,128 3,564 4,800
5 7,776 3,888 5,200
6 8,376 4,188 5,600
7 8,952 4,476 6,000
8 9,256 4,680 6,300
*Work First Family Assistance (WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).
The payment level for Work First Family Assistance shall be fifty percent (50%) of the standard of need.
These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
Monthly Net Wages Monthly Incentive Allowance
$1.00 to $100.99 Up to $50.00
$101.00 to $200.99 $80.00
$201.00 to $300.99 $130.00
$301.00 and greater $212.00.
(1) Pregnant women with incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits. In determining income eligibility under this subdivision, the income of a minor's parents shall be counted if the minor is residing in the home.
(2) Infants under the age of one with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
(3) Children aged one through five with family incomes equal to or less than one hundred thirty-three percent (133%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
(4) Children aged six through 18 with family incomes equal to or less than the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
(5) The Department of Health and Human Services shall provide Medicaid coverage for adoptive children with special or rehabilitative needs regardless of the adoptive family's income.
Services to pregnant women eligible under this subsection continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy. In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children described in subdivisions (3) and (4) of this subsection, no resources test shall be applied.
(1) During the development of new medical coverage policy or amendment to existing medical coverage policy, consult with and seek the advice of the Physician Advisory Group of the North Carolina Medical Society and other organizations the Secretary deems appropriate. The Secretary shall also consult with and seek the advice of officials of the professional societies or associations representing providers groups listed in subdivision (a)(6) of this section who are affected by the new medical coverage policy or amendments to existing medical coverage policy due to their involvement with or use of new technologies or therapies.
(2) At least 45 days prior to the adoption of new or amended medical coverage policy, the Department shall:
a. Publish the proposed new or amended medical coverage policy on the Department's web site;
b. Notify all Medicaid providers of the proposed, new, or amended policy; and
c. Upon request, provide persons copies of the proposed medical coverage policy.
(3) During the 45-day period immediately following publication of the proposed new or amended medical coverage policy, accept oral and written comments on the proposed new or amended policy.
(4) If, following the comment period, the proposed new or amended medical coverage policy is modified, then the Department shall, at least 15 days prior to its adoption:
a. Notify all Medicaid providers of the proposed policy;
b. Upon request, provide persons notice of amendments to the proposed policy; and
c. Accept additional oral or written comments during this 15-day period.
MEDICAID RESERVE FUND TRANSFER
DISPOSITION OF DISPROPORTIONATE SHARE RECEIPTS
MEDICAID COST CONTAINMENT ACTIVITIES
INCREASES IN FEDERAL MEDICAID FUNDS
SECTION 10.24.(a) Notwithstanding any other provision of law to the contrary, the total amount of State funds that become available to the Department of Health and Human Services for the 2003-2004 fiscal year due to an increase in federal Medicaid funds resulting from increases in the Federal Financial Participation rate shall be used to increase funds appropriated to the Department for the 2003-2004 fiscal year for the Medicaid Program without any reduction in what is otherwise allocated to the Department from appropriated funds.
SECTION 10.24.(b) The Department of Health and Human Services, Division of Medical Assistance, may reinstate eligibility policies changed by this act when all of the following conditions are met:
(1) Congress approves enhanced Federal Financial Participation for State Medicaid programs.
(2) Receipt of the enhanced Federal Financial Participation is dependent on a State's maintenance of effort in Medicaid eligibility.
(3) The Department has concluded that the enacted policy changes render the State ineligible for the enhanced Federal Financial Participation.
(4) Enhanced Federal Financial Participation receipts exceed the anticipated savings in State funds from the enacted policy changes.
TRANSFER OF PROPERTY TO QUALIFY FOR MEDICAID
SECTION 10.26. G.S. 108A-58 reads as rewritten:
"§ 108A-58. Transfer of property for purposes of qualifying for medical assistance; periods of ineligibility.
(a) Any person, otherwise
eligible, who, either while receiving medical assistance benefits or within
one year prior to the date of applying for medical assistance benefits, unless
some other within the time period is mandated by controlling
federal law, sells, gives, assigns or transfers countable real or personal
property or an interest in real or personal property for the purpose of
retaining or establishing eligibility for medical assistance benefits, shall be
ineligible to receive medical assistance benefits as set forth in subsection
(c) of this section.section 1917(c) of the Social Security Act.
Countable real and personal property includes real property, excluding a
homesite, unless other applicable federal or State law requires the homesite
to be counted for transfer of property purposes, intangible personal
property, nonessential motor and recreational vehicles, nonincome producing
business equipment, boats and motors. The provisions of this act shall not
apply to the sale, gift, assignment or transfer of real or personal property if
and to the extent that the person applying for medical assistance would have
been eligible for such assistance notwithstanding ownership of such property or
an interest therein.
(b) Any sale, gift, assignment or transfer of real or personal property or an interest in real or personal property, as provided in subsection (a) of this section, shall be presumed to have been made for the purpose of retaining or establishing eligibility for medical assistance benefits unless the person, or the person's legal representative, who sells, gives, assigns or transfers the property or interest, receives valuable consideration at least equal to the fair market value, less encumbrances, of the property or interest.
(c) Any person who sells,
gives, assigns or transfers real or personal property or an interest in real or
personal property for the purpose of retaining or establishing eligibility for
medical assistance benefits, as provided in subsection (a) of this section,
shall, after the time of transfer, be ineligible to receive these benefits
until an amount equal to the uncompensated value of the property or interest
has been expended by or on behalf of the person for the person's maintenance
and support, including medical expenses, paid or incurred, or shall be ineligible
based on the period of time required under section 1917(c) of the Social
Security Act. in accordance with the following schedule, whichever is
sooner;
(1) For
uncompensated value of at least one thousand dollars ($1,000) but not more than
six thousand dollars ($6,000), a one-year period of ineligibility from date of
sale, gift, assignment or transfer;
(2) For
uncompensated value of more than six thousand dollars ($6,000) but not more
than twelve thousand dollars ($12,000), a two-year period of ineligibility from
date of sale, gift, assignment or transfer;
(3) For
uncompensated value of more than twelve thousand dollars ($12,000), a two-year
period of ineligibility from date of sale, gift, assignment or transfer, plus
one additional month of ineligibility for each five hundred dollar ($500.00)
increment or portion thereof by which the uncompensated value exceeds twelve
thousand dollars ($12,000), but in no event to exceed three years.
(d) The sale, gift,
assignment or transfer for a consideration less than fair market value, less
encumbrances, of any tangible personal property which was acquired with the
proceeds of sale, assignment or transfer of real or intangible personal
property described in subsection (a) of this section or in exchange for such
real or intangible personal property shall be presumed to have been for the
purpose of evading the provisions of this section if the acquisition and sale,
gift, assignment or transfer of the tangible personal property is by or on
behalf of a person receiving medical assistance or within the time period
mandated by controlling federal law one year of making application for
such assistance and the consequences of the sale, gift, assignment of
transfer of such tangible personal property shall be determined under the
provisions of subsections (c), (f) and (g) (c) and (f) of this
section.
(e) The presumptions created by subsections (b) and (d) may be overcome if the person receiving or applying for medical assistance, or the person's legal representative, establishes by the greater weight of the evidence that the sale, gift, assignment or transfer was exclusively for some purpose other than retaining or establishing eligibility for medical assistance benefits.
(f) For the purpose of establishing uncompensated value under subsection (c), the value of property or an interest therein shall be the fair market value of the property or interest at the time of the sale, gift, assignment or transfer, less the amount of compensation, if any, received for the property or interest. There shall be a rebuttable presumption that the fair market value of real property is the most recent property tax value of the property, as ascertained according to Subchapter II of Chapter 105 of the General Statutes. Fair market value for purpose of this subsection shall be such value, determined as above set out, less any legally enforceable encumbrances to which the property is subject.
(g) In the
event that there is more than one sale, gift, assignment or transfer of
property or an interest therein by a person receiving medical assistance or
within one year of the date of an application for medical assistance, unless
some other time period is mandated by controlling federal law, the uncompensated
value, for the purposes of subsection (c), shall be the aggregate uncompensated
value of all sales, gifts, assignments and transfers. The date which is the
midpoint between the date of the first and last sale, gift, assignment or
transfer shall be the date from which the period of ineligibility shall be
determined under subsection (c).
(h) This section shall not apply to applicants for or recipients of Work First Family Assistance or to persons entitled to medical assistance by virtue of their eligibility for Work First Family Assistance.
(i) This section shall apply only to transfers made before July 1, 1988."
"§ 108A-55.1. Medicare enrollment required.
The Department shall require State Medical Assistance Program recipients who qualify for Medicare to enroll in Medicare, in accordance with Title XIX of the Social Security Act, in order to pay medical expenditures that qualify for payment under Medicare Part B. Failure to enroll in Medicare shall result in nonpayment of these expenditures under the State Medical Assistance Program. A provider may seek payment for services from Medicaid enrollees who are eligible for but not enrolled in Medicare Part B."
MEDICAID ASSESSMENT PROGRAM FOR SKILLED NURSING FACILITIES
SECTION 10.29.(a) G.S. 108A-70.21 reads as rewritten:
"§ 108A-70.21. Program eligibility; benefits; enrollment fee and other cost-sharing; coverage from private plans; purchase of extended coverage.
(a) Eligibility. - The Department may enroll eligible children based on availability of funds. Following are eligibility and other requirements for participation in the Program:
(1) Children must:
a. Be under the age of 19;
b. Be ineligible for Medicaid, Medicare, or other federal government-sponsored health insurance;
c. Be uninsured;
d. Be in a family that meets the following family income requirements:
1. Infants under the age of one year whose family income is from one hundred eighty-five percent (185%) through two hundred percent (200%) of the federal poverty level;
2. Children age one year through five years whose family income is above one hundred thirty-three percent (133%) through two hundred percent (200%) of the federal poverty level; and
3. Children age six years through eighteen years whose family income is above one hundred percent (100%) through two hundred percent (200%) of the federal poverty level;
e. Be a resident of this State and eligible under federal law; and
f. Have paid the Program enrollment fee required under this Part.
(2) Proof of family income and residency and declaration of uninsured status shall be provided by the applicant at the time of application for Program coverage. The family member who is legally responsible for the children enrolled in the Program has a duty to report any change in the enrollee's status within 60 days of the change of status.
(3) If a responsible parent is under a court order to provide or maintain health insurance for a child and has failed to comply with the court order, then the child is deemed uninsured for purposes of determining eligibility for Program benefits if at the time of application the custodial parent shows proof of agreement to notify and cooperate with the child support enforcement agency in enforcing the order.
If health insurance other than under the Program is provided to the child after enrollment and prior to the expiration of the eligibility period for which the child is enrolled in the Program, then the child is deemed to be insured and ineligible for continued coverage under the Program. The custodial parent has a duty to notify the Department within 10 days of receipt of the other health insurance, and the Department, upon receipt of notice, shall disenroll the child from the Program. As used in this paragraph, the term "responsible parent" means a person who is under a court order to pay child support.
(4) Except as otherwise provided in this section, enrollment shall be continuous for one year. At the end of each year, applicants may reapply for Program benefits.
(b) Benefits. - Except as otherwise provided for eligibility, fees, deductibles, copayments, and other cost-sharing charges, health benefits coverage provided to children eligible under the Program shall be equivalent to coverage provided for dependents under the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan, including optional prepaid plans. Prescription drug providers shall accept as payment in full, for outpatient prescriptions filled, ninety percent (90%) of the average wholesale price for the prescription drug or the amounts published by the Centers for Medicare and Medicaid Services plus a dispensing fee of five dollars and sixty cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per prescription for brand name drugs. All other health care providers providing services to Program enrollees shall accept as payment in full for services rendered the maximum allowable charges under the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan for services less any copayments assessed to enrollees under this Part. No child enrolled in the Plan's self-insured indemnity program shall be required by the Plan to change health care providers as a result of being enrolled in the Program.
In addition to the benefits provided under the Plan, the following services and supplies are covered under the Health Insurance Program for Children established under this Part:
(1) Dental: Oral examinations, teeth cleaning, and scaling twice during a 12-month period, full mouth X-rays once every 60 months, supplemental bitewing X-rays showing the back of the teeth once during a 12-month period, fluoride applications twice during a 12-month period, fluoride varnish, sealants, simple extractions, therapeutic pulpotomies, prefabricated stainless steel crowns, and routine fillings of amalgam or other tooth-colored filling material to restore diseased teeth. No benefits are to be provided for services under this subsection that are not performed by or upon the direction of a dentist, doctor, or other professional provider approved by the Plan nor for services and materials that do not meet the standards accepted by the American Dental Association.
(2) Vision: Scheduled
routine eye examinations once every 12 months, eyeglass lenses or contact
lenses once every 12 months, routine replacement of eyeglass frames once every
24 months, and optical supplies and solutions when needed. Optical services,
supplies, and solutions must be obtained from licensed or certified opthamologists,
ophthalmologists, optometrists, or optical dispensing laboratories.
Eyeglass lenses are limited to single vision, bifocal, trifocal, or other
complex lenses necessary for a Plan enrollee's visual welfare. Coverage for
oversized lenses and frames, designer frames, photosensitive lenses, tinted
contact lenses, blended lenses, progressive multifocal lenses, coated lenses,
and laminated lenses is limited to the coverage for single vision, bifocal,
trifocal, or other complex lenses provided by this subsection. Eyeglass frames
are limited to those made of zylonite, metal, or a combination of zylonite and
metal. All visual aids covered by this subsection require prior approval of the
Plan. Upon prior approval by the Plan, refractions may be covered more often
than once every 12 months.
(3) Hearing: Auditory diagnostic testing services and hearing aids and accessories when provided by a licensed or certified audiologist, otolaryngologist, or other hearing aid specialist approved by the Plan. Prior approval of the Plan is required for hearing aids, accessories, earmolds, repairs, loaners, and rental aids.
The Department may provide services to children aged birth through five years enrolled in the Program through the State Medical Assistance managed care program. Services provided through the managed care program shall be paid from Program funds.
(c) Annual Enrollment Fee. - There shall be no enrollment fee for Program coverage for enrollees whose family income is at or below one hundred fifty percent (150%) of the federal poverty level. The enrollment fee for Program coverage for enrollees whose family income is above one hundred fifty percent (150%) of the federal poverty level shall be fifty dollars ($50.00) per year per child with a maximum annual enrollment fee of one hundred dollars ($100.00) for two or more children. The enrollment fee shall be collected by the county department of social services and retained to cover the cost of determining eligibility for services under the Program. County departments of social services shall establish procedures for the collection of enrollment fees.
(d) Cost-Sharing. - There
shall be no deductibles, copayments, or other cost-sharing charges for families
covered under the Program whose family income is at or below one hundred fifty
percent (150%) of the federal poverty level. level, except that fees
for outpatient prescription drugs are applicable and shall be one dollar
($1.00) for each outpatient generic prescription drug and for each outpatient
brand-name prescription drug for which there is no generic substitution
available. The fee for each outpatient brand-name prescription drug for which
there is a generic substitution available is three dollars ($3.00). Families
covered under the Program whose family income is above one hundred fifty
percent (150%) of the federal poverty level shall be responsible for copayments
to providers as follows:
(1) Five dollars ($5.00) per child for each visit to a provider, except that there shall be no copayment required for well-baby, well-child, or age-appropriate immunization services;
(2) Five dollars ($5.00) per child for each outpatient hospital visit;
(3) A six-dollar
($6.00) fee for each outpatient prescription drug purchased; one dollar
($1.00) fee for each outpatient generic prescription drug and for each
outpatient brand-name prescription drug for which there is no generic
substitution available. The fee for each outpatient brand-name prescription
drug for which there is a generic substitution available is ten dollars
($10.00).
(4) Twenty dollars ($20.00) for each emergency room visit unless:
a. The child is admitted to the hospital, or
b. No other reasonable care was available as determined by the Claims Processing Contractor of the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan.
Copayments required under this subsection for prescription drugs apply only to prescription drugs prescribed on an outpatient basis.
(e) Cost-Sharing Limitations. - The total annual aggregate cost-sharing, including fees, with respect to all children in a family receiving Program benefits under this Part shall not exceed five percent (5%) of the family's income for the year involved. To assist the Department in monitoring and ensuring that the limitations of this subsection are not exceeded, the Executive Administrator and Board of Trustees of the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan shall provide data to the Department showing cost-sharing paid by Program enrollees.
(f) Coverage From Private Plans. - The Department shall, from funds available for the Program, pay the cost for dependent coverage provided under a private insurance plan for persons eligible for coverage under the Program if all of the following conditions are met:
(1) The person eligible for Program coverage requests to obtain dependent coverage from a private insurer in lieu of coverage under the Program and shows proof that coverage under the private plan selected meets the requirements of this subsection;
(2) The dependent coverage under the private plan is actuarially equivalent to the coverage provided under the Program and the private plan does not engage in the exclusive enrollment of children with favorable health care risks;
(3) The cost of dependent coverage under the private plan is the same as or less than the cost of coverage under the Program; and
(4) The total annual aggregate cost-sharing, including fees, paid by the enrollee under the private plan for all dependents covered by the plan, do not exceed five percent (5%) of the enrollee's family income for the year involved.
The Department may reimburse an enrollee for private coverage under this subsection upon a showing of proof that the dependent coverage is in effect for the period for which the enrollee is eligible for the Program.
(g) Purchase of Extended Coverage. - An enrollee in the Program who loses eligibility due to an increase in family income above two hundred percent (200%) of the federal poverty level and up to and including two hundred twenty-five percent (225%) of the federal poverty level may purchase at full premium cost continued coverage under the Program for a period not to exceed one year beginning on the date the enrollee becomes ineligible under the income requirements for the Program. The same benefits, copayments, and other conditions of enrollment under the Program shall apply to extended coverage purchased under this subsection.
(h) No State Funds for Voluntary Participation. - No State or federal funds shall be used to cover, subsidize, or otherwise offset the cost of coverage obtained under subsection (g) of this section."
SECTION 10.29.(b) G.S. 108A-70.23(c) reads as rewritten:
"(c) Services Provided. - The services authorized to be provided to children eligible under this section are as follows:
(1) The same level of
services as provided for special needs children under the Medical Assistance
Program as authorized in the Current Operations Appropriations Act except that
that:
a. no
No services for long-term care shall be provided under this section,
and section;
b. except
that services Services for respite care shall be provided only under
emergency circumstances; and
c. The Department may limit services for special needs children after consultation with the Commission on Children with Special Health Care Needs.
(2) Only those services eligible under this section that are not covered or otherwise provided under Part 5 of Article 3 of Chapter 135 of the General Statutes."
COLLABORATION AMONG DHHS, DPI, AND LEAS TO ENSURE MEDICAID-RELATED SERVICES FOR ELIGIBLE PUBLIC SCHOOL STUDENTS WITH DISABILITIES
SECTION 10.29A. Part 6 of Article 2 of Chapter 108A of the General Statutes is amended by adding the following new section to read:
"§ 108A-55.1. Collaboration among agencies to ensure Medicaid-related services payments to eligible students with disabilities in public schools.
The Department shall work with the Department of Public Instruction and local education agencies to develop efficient, effective, and appropriate administrative procedures and guidelines to provide maximum funding for Medicaid-related services for Medicaid-eligible students with disabilities. The procedures and guidelines shall be streamlined to ensure that local education agencies receive Medicaid reimbursement in a timely manner for Medicaid-related services and administrative outreach to Medicaid-eligible students with disabilities."
AUDIT OF CAP/DA PROGRAMS BY STATE AUDITOR
SECTION 10.29B.(a) If State funds are appropriated to the Office of State Auditor for this purpose, then the State Auditor shall perform an audit of the Community Alternatives Program for Disabled Adults (CAP/DA). The audit shall build upon the results of the study conducted in accordance with Section 10.16(c) of S.L. 2002-126, by the North Carolina Institute of Medicine and shall provide information necessary to determine whether CAP/DA is operating within waiver guidelines and program goals. The State Auditor shall report the results of the audit to the North Carolina Study Commission on Aging by January 1, 2004.
SECTION 10.29B.(b) The Department of Health and Human Services shall continue to examine CAP/DA and shall make a report of its findings to the North Carolina Study Commission on Aging by January 1, 2004. The report shall include the following information:
(1) A review of the current assessment process for CAP/DA clients, including an explanation of how assessments are conducted and a comparison of the assessment process for CAP/DA clients with the assessment process for nursing home and adult care home clients.
(2) A description of total program costs to the State and counties for clients receiving CAP/DA payments and an analysis of per-client costs in CAP/DA to per-client costs in nursing homes and adult care homes. This analysis shall include the costs of all forms of assistance received by CAP/DA clients, such as food stamps and housing assistance.
(3) A description of total program costs and an analysis of per-participant costs for individuals in the State-County In-Home Program. The analysis shall include a comparison of per-client costs for participants in the In-Home Program to per-client costs in adult care homes.
(4) A description of total program costs and an analysis of per-person costs for persons receiving personal care services through the Medicaid program. The analysis shall include a comparison of per-person costs in nursing homes and adult care homes.
(5) A description of the monitoring of quality of care for CAP/DA clients.
(6) An evaluation of the current waiting list procedures.
SUBPART 4. DIVISION OF PUBLIC HEALTH
SECTION 10.30.(a) Of the funds appropriated in this act to the Department of Health and Human Services for childhood immunization programs for positions, operating support, equipment, and pharmaceuticals, the sum of one million dollars ($1,000,000) for the 2003-2004 fiscal year and the sum of one million dollars ($1,000,000) for the 2004-2005 fiscal year may be used for projects and activities that are also designed to increase childhood immunization rates in North Carolina. These projects and activities shall include the following:
(1) Outreach efforts at the State and local levels to improve service delivery of vaccines. Outreach efforts may include educational seminars, media advertising, support services to parents to enable children to be transported to clinics, longer operating hours for clinics, and mobile vaccine units.
(2) Continued development of an automated immunization registry.
SECTION 10.30.(b) Funds authorized to be used for immunization efforts under subsection (a) of this section shall not be used to fund additional State positions in the Department of Health and Human Services or contracts, except for contracts to develop an automated immunization registry or contracts with local health departments for outreach.
AIDS DRUG ASSISTANCE PROGRAM (ADAP)
SECTION 10.31.(a) For the 2003-2004 fiscal year and for the 2004-2005 fiscal year, HIV-positive individuals with incomes at or below one hundred twenty-five percent (125%) of the federal poverty level are eligible for participation in ADAP. Eligibility for participation in ADAP during the 2003-2005 fiscal biennium shall not be extended to individuals with incomes above one hundred twenty-five percent (125%) of the federal poverty level.
(1) ADAP program utilization:
a. Monthly data on total cumulative AIDS/HIV cases reported in North Carolina.
b. Monthly data on the number of individuals who have applied to participate in ADAP that have been determined to be ineligible.
c. Monthly data on the income level of participants in ADAP and of individuals who have applied to participate in ADAP who have been determined to be ineligible.
d. Monthly data on fiscal year-to-date expenditures of ADAP. The interim report shall contain monthly data on the calendar year-to-date expenditures of ADAP.
e. An update on the status of the information management system.
f. Monthly data on ADAP usage patterns and demographics of participants in ADAP.
g. Fiscal year-to-date budget information.
NEWBORN HEARING SCREENING PROGRAM REPORT
(1) Unduplicated number of infants screened.
(2) Number of infants who failed the second hearing screening.
(3) Number of infants receiving the diagnostic evaluation.
(4) Number and types of services provided.
(5) Number and types of follow-up services provided to children.
The Department shall submit the report not later than May 1, 2004, 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.
EMPLOYEES EXAMINED FOR ASBESTOSIS OR SILICOSIS UNDER WORKERS' COMPENSATION STATUTE
SECTION 10.33.(a) G.S. 97-60 is repealed.
SECTION 10.33.(b) G.S. 97-61.1 reads as rewritten:
"§ 97-61.1. First examination of and report on employee having asbestosis or silicosis.
When an employee and the Industrial Commission are is
advised by the Department of Health and Human Servicesan employer or
employee that an employee has or allegedly has asbestosis or
silicosis, the employer shall be notified by the Industrial Commission, and
the employee, when ordered by the Industrial Commission, shall go to a place
designated by the Industrial Commission and submit to X rays and a physical
examination by the advisory medical committee or other designated qualified
physician who is not a member of the advisory medical committee.committee,
at least one of whom shall conduct the examination, and the member or members
of the advisory medical committee conducting the examination shall forward the
X rays and findings to the member or members of the committee not present for
the physical examination. The employer shall pay the expenses connected
with the examination by the advisory medical committee or other designated
qualified physician who is not a member of the advisory medical committee in
such amounts as shall be directed by the Industrial Commission. Within 30 days
after the completion of the examination, the advisory medical committee or
other designated qualified physician shall make a written report signed
by all of its members shall submit a written report to the Industrial
Commission setting forth:
(1) The X rays and
clinical procedures used by the committee in arriving at its findings.used.
(2) Whether or not the claimant has contracted asbestosis or silicosis.
(3) The committee's The
advisory medical committee's or designated qualified physician's opinion
expressed in percentages of the impairment of the employee's ability to perform
normal labor in the same or any other employment.
(4) Any other matter
deemed pertinent by the committee.pertinent.
When a competent physician certifies to the Industrial Commission that the employee's physical condition is such that his movement to the place of examination ordered by the Industrial Commission as herein provided in G.S. 97-61.1, 97-61.3 and 97-61.4 would be harmful or injurious to the health of the employee, the Industrial Commission shall cause the examination of the employee to be made by the advisory medical committee or other designated qualified physician as herein provided at some place in the vicinity of the residence of the employee suitable for the purposes of making such examination."
SECTION 10.33.(c) G.S. 97-72(b) is repealed.
SECTION 10.33.(d) G.S. 97-73(b) and (c) are repealed.
SECTION 10.33.(f) G.S. 97-75 and G.S. 97-76 are repealed.
RENAME NORTH CAROLINA HEART DISEASE AND STROKE PREVENTION TASK FORCE
SECTION 10.33B. G.S. 143B-216.60 reads as rewritten:
"§ 143B-216.60.
North CarolinaThe Justus-Warren Heart Disease and Stroke
Prevention Task Force.
(a) The North CarolinaJustus-Warren
Heart Disease and Stroke Prevention Task Force is created in the Department of
Health and Human Services.
(b) The Task Force shall have 27 members. The Governor shall appoint the Chair, and the Vice-Chair shall be elected by the Task Force. The Director of the Department of Health and Human Services, the Director of the Division of Medical Assistance in the Department of Health and Human Services, and the Director of the Division of Aging in the Department of Health and Human Services, or their designees, shall be members of the Task Force. Appointments to the Task Force shall be made as follows:
(1) By the General Assembly upon the recommendation of the President Pro Tempore of the Senate, as follows:
a. Three members of the Senate;
b. A heart attack survivor;
c. A local health director;
d. A certified health educator;
e. A hospital administrator; and
f. A representative of the North Carolina Association of Area Agencies on Aging.
(2) By the General Assembly upon the recommendation of the Speaker of the House of Representatives, as follows:
a. Three members of the House of Representatives;
b. A stroke survivor;
c. A county commissioner;
d. A licensed dietitian/nutritionist;
e. A pharmacist; and
f. A registered nurse.
(3) By the Governor, as follows:
a. A practicing family physician, pediatrician, or internist;
b. A president or chief executive officer of a business upon recommendation of a North Carolina wellness council which is a member of the Wellness Councils of America;
c. A news director of a newspaper or television or radio station;
d. A volunteer of the North Carolina Affiliate of the American Heart Association;
e. A representative from the North Carolina Cooperative Extension Service;
f. A representative of the Governor's Council on Physical Fitness and Health; and
g. Two members at large.
(c) Each appointing authority shall assure insofar as possible that its appointees to the Task Force reflect the composition of the North Carolina population with regard to ethnic, racial, age, gender, and religious composition.
(d) The General Assembly and the Governor shall make their appointments to the Task Force not later than 30 days after the adjournment of the 1995 General Assembly, Regular Session 1995. A vacancy on the Task Force shall be filled by the original appointing authority, using the criteria set out in this section for the original appointment.
(e) The Task Force shall meet at least quarterly or more frequently at the call of the Chair.
(f) The Task Force Chair may establish committees for the purpose of making special studies pursuant to its duties, and may appoint non-Task Force members to serve on each committee as resource persons. Resource persons shall be voting members of the committees and shall receive subsistence and travel expenses in accordance with G.S. 138-5 and G.S. 138-6. Committees may meet with the frequency needed to accomplish the purposes of this section.
(g) Members of the Task Force shall receive per diem and necessary travel and subsistence expenses in accordance with G.S. 120-3.1, 138-5 and 138-6, as applicable.
(h) A majority of the Task Force shall constitute a quorum for the transaction of its business.
(i) The Task Force may use funds allocated to it to establish two positions and for other expenditures needed to assist the Task Force in carrying out its duties.
(j) The Heart
Disease and Stroke Prevention Task Force has the following duties:
(1) To undertake a statistical and qualitative examination of the incidence of and causes of heart disease and stroke deaths and risks, including identification of subpopulations at highest risk for developing heart disease and stroke, and establish a profile of the heart disease and stroke burden in North Carolina.
(2) To publicize the profile of the heart disease and stroke burden and its preventability in North Carolina.
(3) To identify priority strategies which are effective in preventing and controlling risks for heart disease and stroke.
(4) To identify, examine limitations of, and recommend to the Governor and the General Assembly changes to existing laws, regulations, programs, services, and policies to enhance heart disease and stroke prevention by and for the people of North Carolina.
(5) To determine and recommend to the Governor and the General Assembly the funding and strategies needed to enact new or to modify existing laws, regulations, programs, services, and policies to enhance heart disease and stroke prevention by and for the people of North Carolina.
(6) To adopt and promote a statewide comprehensive Heart Disease and Stroke Prevention Plan to the general public, State and local elected officials, various public and private organizations and associations, businesses and industries, agencies, potential funders, and other community resources.
(7) To identify and facilitate specific commitments to help implement the Plan from the entities listed in subdivision (6) above.
(8) To facilitate coordination of and communication among State and local agencies and organizations regarding current or future involvement in achieving the aims of the Heart Disease and Stroke Prevention Plan.
(9) To receive and consider reports and testimony from individuals, local health departments, community-based organizations, voluntary health organizations, and other public and private organizations statewide, to learn more about their contributions to heart disease and stroke prevention, and their ideas for improving heart disease and stroke prevention in North Carolina.
(k) Notwithstanding Section 11.57 of S.L. 1999-237, the Task Force shall submit a final report to the Governor and the General Assembly by June 30, 2003, and a report to each subsequent regular legislative session within one week of its convening."
"§ 130A-40.1. Pilot program for nurse as health director.
(a) Notwithstanding G.S. 130A-40, a local board of health, after consulting with the appropriate county board of commissioners, and with the approval of the Secretary of Health and Human Services, may appoint a local health director who meets the following education and experience requirements for that position:
(1) Graduation from a four-year college or university with a Bachelor of Science in Nursing degree that includes a public health nursing rotation; or
(2) A candidate with an RN but not a bachelors degree if the candidate has at least 10 years' experience, at least seven years of which must be in an administrative or supervisory role, and of this seven years, at least five years must be at the agency at which the candidate is an applicant for employment as local health director.
(b) The Secretary of Health and Human Services may approve only one request under subsection (a) of this section, this section being designed as a pilot program concerning alternative qualifications for a local health director. The Secretary of Health and Human Services shall report any approval under this section to the Public Health Study Commission.
(c) All bachelors level candidates appointed under this section shall have a total of 10 years' public health experience, at least five years of which must be in a supervisory capacity at the agency at which the candidate is an applicant for employment as a local health director. Bachelor of Science in Nursing candidates with a public health rotation may use this BSN degree as credit for one year's public health experience.
(d) In addition to possessing the qualifications required in this section, all Bachelor of Science, Bachelor of Arts, or Registered Nurse candidates must complete at least six contact hours of continuing education annually on the subject of local and State government finance, organization, or budgeting. The training must be in a formal setting offered through the State or local government or through an accredited educational institution. This training is in addition to any other required training for local health director or other continuing education required to maintain other professional credentials. If during the course of employment as local health director the employee meets the requirements of this subsection, the additional training requirements of this section are waived.
SUBPART 5. DIVISION OF CHILD DEVELOPMENT
CHILD CARE FUNDS MATCHING REQUIREMENT
SECTION 10.35.(a) The maximum gross annual income for initial eligibility, adjusted biennially, for subsidized child care services shall be seventy-five percent (75%) of the State median income, adjusted for family size.
SECTION 10.35.(b) Fees for families who are required to share in the cost of care shall be established based on a percent of gross family income and adjusted for family size. Fees shall be determined as follows:
FAMILY SIZE PERCENT OF GROSS FAMILY INCOME
1-3 10%
4-5 9%
6 or more 8%.
SECTION 10.35.(c) Payments for the purchase of child care services for low-income children shall be in accordance with the following requirements:
(1) Religious-sponsored child care facilities operating pursuant to G.S. 110-106 and licensed child care centers and homes that meet the minimum licensing standards that are participating in the subsidized child care program shall be paid the one-star county market rate or the rate they charge privately paying parents, whichever is lower.
(2) Licensed child care centers and homes with two or more stars shall receive the market rate for that rated license level for that age group or the rate they charge privately paying parents, whichever is lower.
(3) Nonlicensed homes shall receive fifty percent (50%) of the county market rate or the rate they charge privately paying parents, whichever is lower.
(4) Maximum payment rates shall also be calculated periodically by the Division of Child Development for transportation to and from child care provided by the child care provider, individual transporter, or transportation agency, and for fees charged by providers to parents. These payment rates shall be based upon information collected by market rate surveys.
SECTION 10.35.(d) Provision of payment rates for child care providers in counties that do not have at least 50 children in each age group for center-based and home-based care are as follows:
(1) Except as applicable in subdivision (2) of this subsection, payment rates shall be set at the statewide or regional market rate for licensed child care centers and homes.
(2) If it can be demonstrated that the application of the statewide or regional market rate to a county with fewer than 50 children in each age group is lower than the county market rate and would inhibit the ability of the county to purchase child care for low-income children, then the county market rate may be applied.
SECTION 10.35.(e) A market rate shall be calculated for child care centers and homes at each rated license level for each county and for each age group or age category of enrollees and shall be representative of fees charged to unsubsidized privately paying parents for each age group of enrollees within the county. The Division of Child Development shall also calculate a statewide rate and regional market rates for each rated license level for each age category.
SECTION 10.35.(f) Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes and facilities operated pursuant to G.S. 110-106 may participate in the program that provides for the purchase of care in child care facilities for minor children of needy families. No separate licensing requirements shall be used to select facilities to participate. In addition, child care facilities shall be required to meet any additional applicable requirements of federal law or regulations. Child care arrangements exempt from State regulation pursuant to Article 7 of Chapter 110 of the General Statutes shall meet the requirements established by other State law and by the Social Services Commission.
County departments of social services or other local contracting agencies shall not use a provider's failure to comply with requirements in addition to those specified in this subsection as a condition for reducing the provider's subsidized child care rate.
SECTION 10.35.(g) Payment for subsidized child care services provided with Work First Block Grant funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 10.35.(h) Noncitizen families who reside in this State legally shall be eligible for child care subsidies if all other conditions of eligibility are met. If all other conditions of eligibility are met, noncitizen families who reside in this State illegally shall be eligible for child care subsidies only if at least one of the following conditions is met:
(1) The child for whom a child care subsidy is sought is receiving child protective services or foster care services.
(2) The child for whom a child care subsidy is sought is developmentally delayed or at risk of being developmentally delayed.
(3) The child for whom a child care subsidy is sought is a citizen of the United States.
SECTION 10.36.(a) The Department of Health and Human Services shall allocate child care subsidy voucher funds to pay the costs of necessary child care for minor children of needy families. The mandatory thirty percent (30%) Smart Start subsidy allocation under G.S. 143B-168.15(g) shall constitute the base amount for each county's child care subsidy allocation. The Department of Health and Human Services shall use the following method when allocating federal and State child care funds, not including the aggregate mandatory thirty percent (30%) Smart Start subsidy allocation:
(1) Funds shall be allocated based upon the projected cost of serving children in a county under age 11 in families with all parents working who earn less than seventy-five percent (75%) of the State median income.
(2) No county's allocation shall be less than ninety percent (90%) of its State Fiscal Year 2001-2002 initial child care subsidy allocation.
SECTION 10.36.(b) The Department of Health and Human Services may reallocate unused child care subsidy voucher funds in order to meet the child care needs of low-income families. Any reallocation of funds shall be based upon the expenditures of all child care subsidy voucher funding, including Smart Start funds, within a county.
EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES ENHANCEMENTS
SECTION 10.38.(a) Administrative costs shall be equivalent to, on an average statewide basis for all local partnerships, not more than eight percent (8%) of the total statewide allocation to all local partnerships. For purposes of this subsection, administrative costs shall include costs associated with partnership oversight, business and financial management, general accounting, human resources, budgeting, purchasing, contracting, and information systems management.
SECTION 10.38.(b) The North Carolina Partnership for Children, Inc., and all local partnerships shall use competitive bidding practices in contracting for goods and services on contract amounts as follows:
(1) For amounts of five thousand dollars ($5,000) or less, the procedures specified by a written policy to be developed by the Board of Directors of the North Carolina Partnership for Children, Inc.
(2) For amounts greater than five thousand dollars ($5,000), but less than fifteen thousand dollars ($15,000), three written quotes.
(3) For amounts of fifteen thousand dollars ($15,000) or more, but less than forty thousand dollars ($40,000), a request for proposal process.
(4) For amounts of forty thousand dollars ($40,000) or more, a request for proposal process and advertising in a major newspaper.
SECTION 10.38.(c) The North Carolina Partnership for Children, Inc., and all local partnerships shall, in the aggregate, be required to match no less than fifty percent (50%) of the total amount budgeted for the program in each fiscal year of the biennium as follows: contributions of cash equal to at least fifteen percent (15%) and in-kind donated resources equal to no more than five percent (5%) for a total match requirement of twenty percent (20%) for each fiscal year. The North Carolina Partnership for Children, Inc., may carry forward any amount in excess of the required match for a fiscal year in order to meet the match requirement of the succeeding fiscal year. Only in-kind contributions that are quantifiable shall be applied to the in-kind match requirement. Volunteer services may be treated as an in-kind contribution for the purpose of the match requirement of this subsection. Volunteer services that qualify as professional services shall be valued at the fair market value of those services. All other volunteer service hours shall be valued at the statewide average wage rate as calculated from data compiled by the Employment Security Commission in the Employment and Wages in North Carolina Annual Report for the most recent period for which data are available. Expenses, including both those paid by cash and in-kind contributions, incurred by other participating non-State entities contracting with the North Carolina Partnership for Children, Inc., or the local partnerships, also may be considered resources available to meet the required private match. In order to qualify to meet the required private match, the expenses shall:
(1) Be verifiable from the contractor's records.
(2) If in-kind, other than volunteer services, be quantifiable in accordance with generally accepted accounting principles for nonprofit organizations.
(3) Not include expenses funded by State funds.
(4) Be supplemental to and not supplant preexisting resources for related program activities.
(5) Be incurred as a direct result of the Early Childhood Initiatives Program and be necessary and reasonable for the proper and efficient accomplishment of the Program's objectives.
(6) Be otherwise allowable under federal or State law.
(7) Be required and described in the contractual agreements approved by the North Carolina Partnership for Children, Inc., or the local partnership.
(8) Be reported to the North Carolina Partnership for Children, Inc., or the local partnership by the contractor in the same manner as reimbursable expenses.
Failure to obtain a twenty percent (20%) match by June 30 of each fiscal year shall result in a dollar-for-dollar reduction in the appropriation for the Program for a subsequent fiscal year. The North Carolina Partnership for Children, Inc., shall be responsible for compiling information on the private cash and in-kind contributions into a report that is submitted to the Joint Legislative Commission on Governmental Operations in a format that allows verification by the Department of Revenue. The same match requirements shall apply to any expansion funds appropriated by the General Assembly.
SECTION 10.38.(d) The Department of Health and Human Services shall continue to implement the performance-based evaluation system.
SECTION 10.38.(e) The Department of Health and Human Services and the North Carolina Partnership for Children, Inc., shall ensure that the allocation of funds for Early Childhood Education and Development Initiatives for State fiscal years 2003-2004 and 2004-2005 shall be administered and distributed in the following manner:
(1) The North Carolina Partnership for Children, Inc., shall develop a policy to allocate the reduction of funds for Early Childhood Education and Development Initiatives for the 2003-2004 and 2004-2005 fiscal years.
(2) Capital expenditures and playground equipment expenditures are prohibited for fiscal years 2003-2004 and 2004-2005. For the purposes of this section, "capital expenditures" means expenditures for capital improvements as defined in G.S. 143-34.40.
(3) Expenditures of State funds for advertising and promotional activities are prohibited for fiscal years 2003-2004 and 2004-2005.
SECTION 10.38.(f) For the 2003-2004 and 2004-2005 fiscal years, the North Carolina Partnership for Children, Inc., shall not approve local partnership plans that allocate State funds to child care providers for one-time quality improvement initiatives in the following circumstances:
(1) Child care facilities with licensure of four or five stars, unless the expenditure of funds is to expand capacity for low-income children.
(2) Child care facilities that do not accept child care subsidy funds.
SECTION 10.38.(g) For the 2003-2004 fiscal year, the local partnerships shall spend an amount for child care subsidies that provides at least fifty-two million dollars ($52,000,000) for the TANF maintenance of effort requirement and the Child Care Development Fund and Block Grant match requirement.
SECTION 10.38.(i) The North Carolina Partnership for Children, Inc., shall develop a plan to focus on quality child care initiatives and child care subsidies and shall study any duplication of health services, family support, and program support activities and report same to the House of Representatives and Senate Appropriations Chairs.
SECTION 10.38.(j) The North Carolina Partnership for Children, Inc., shall develop a plan to incorporate a penalty into a local partnership's allocation when the local partnership's audit is classified as a "needs improvement performance assessment".
SECTION 10.38.(k) The North Carolina Partnership for Children, Inc., shall report on activities and directives of this act by March 1, 2004, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 10.38.(l) G.S. 143B-168.12(a)(1) reads as rewritten:
"(1) The North Carolina Partnership shall have a Board of Directors consisting of the following 25 members:
a. The Secretary of Health and Human Services, ex officio, or the Secretary's designee;
b. Repealed by Session Laws 1997, c. 443, s. 11A.105.
c. The Superintendent of Public Instruction, ex officio, or the Superintendent's designee;
d. The President of the Community Colleges System, ex officio, or the President's designee;
e. Three members of the public, including one child care provider, one other who is a parent, and one other who is a board chair of a local partnership serving on the North Carolina Partnership local partnership advisory committee, appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate;
f. Three members of the public, including one who is a parent, one other who is a representative of the faith community, and one other who is a board chair of a local partnership serving on the North Carolina Partnership local partnership advisory committee, appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives;
g. Twelve members, appointed by the Governor. Three of these 12 members shall be members of the party other than the Governor's party, appointed by the Governor. Seven of these 12 members shall be appointed as follows: one who is a child care provider, one other who is a pediatrician, one other who is a health care provider, one other who is a parent, one other who is a member of the business community, one other who is a member representing a philanthropic agency, and one other who is an early childhood educator;
h. Repealed by Session Laws 1998-212, s. 12.37B(a), effective October 30, 1998.
h1. The Chair of the North Carolina Partnership Board shall be appointed by the Governor;
i. Repealed by Session Laws 1998-212, s. 12.37B(a), effective October 30, 1998.
j. One member of the public appointed by the General Assembly upon recommendation of the Majority Leader of the Senate;
k. One member of the public appointed by the General Assembly upon recommendation of the Majority Leader of the House of Representatives;
l. One member of the public appointed by the General Assembly upon recommendation of the Minority Leader of the Senate; and
m. One member of the public appointed by the General Assembly upon recommendation of the Minority Leader of the House of Representatives.
All members appointed to succeed the initial members and members appointed thereafter shall be appointed for three-year terms. Members may succeed themselves.
All appointed board members shall avoid conflicts of interests and the appearance of impropriety. Should instances arise when a conflict may be perceived, any individual who may benefit directly or indirectly from the North Carolina Partnership's disbursement of funds shall abstain from participating in any decision or deliberations by the North Carolina Partnership regarding the disbursement of funds.
All ex officio members are voting members. Each ex officio member may be represented by a designee. These designees shall be voting members. No members of the General Assembly shall serve as members.
The North Carolina Partnership may establish a nominating committee and, in making their recommendations of members to be appointed by the General Assembly or by the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Majority Leader of the Senate, the Majority Leader of the House of Representatives, the Minority Leader of the Senate, the Minority Leader of the House of Representatives, and the Governor shall consult with and consider the recommendations of this nominating committee.
The North Carolina Partnership may establish a policy on members' attendance, which policy shall include provisions for reporting absences of at least three meetings immediately to the appropriate appointing authority.
Members who miss more than three consecutive meetings without excuse or members who vacate their membership shall be replaced by the appropriate appointing authority, and the replacing member shall serve either until the General Assembly and the Governor can appoint a successor or until the replaced member's term expires, whichever is earlier.
The North Carolina Partnership shall establish a policy on membership of the
local board, which policy shall include the requirement that all local board
members, other than any member appointed because of a position held by that
individual, be residents of the county or the partnership region they are
representing.boards. No member of the General Assembly shall serve
as a member of a local board. Within these requirements for local board
membership, the North Carolina Partnership shall allow local partnerships that
are regional to have flexibility in the composition of their boards so that all
counties in the region have adequate representation.
All appointed local board members shall avoid conflicts of interests and the appearance of impropriety. Should instances arise when a conflict may be perceived, any individual who may benefit directly or indirectly from the partnership's disbursement of funds shall abstain from participating in any decision or deliberations by the partnership regarding the disbursement of funds."
SECTION 10.38.(m) G.S. 143B-168.12(a)(8) reads as rewritten:
"…
(8) The North Carolina
Partnership shall establish a local partnership advisory committee comprised of
15 members. Eight of the members shall be chairs ofchosen from past
board chairs or duly elected officers currently serving on local
partnerships' board of directors, and seven directors at the time of
appointment and shall serve three-year terms. Seven of the members shall be
staff of local partnerships. Members shall be chosen by the Chair of the North
Carolina Partnership from a pool of candidates nominated by their respective
boards of directors. The local partnership advisory committee shall serve in an
advisory capacity to the North Carolina Partnership and shall establish a
schedule of regular meetings. Members shall be chosen from local partnerships
on a rotating basis. The advisory committee shall annually elect a chair from
among its members.
…."
SECTION 10.38.(n) G.S. 143B-168.12 is amended by adding a new subsection to read:
"(f) The North Carolina Partnership for Children, Inc., shall establish uniform guidelines and a reporting format for local partnerships to document the qualifying expenses occurring at the contractor level. Local partnerships shall monitor qualifying expenses to ensure they have occurred and meet the requirements prescribed in this subsection."
EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES EVALUATION
(1) Evaluation of the Early Childhood Education and Development Initiatives, including the ongoing review of quality child care efforts and child care providers' progress in preparing children to be ready to enter school and succeed.
(2) Continuation of technical assistance to local partnerships in data collection and evaluation.
DEPARTMENT PLAN FOR FAMILY CHILD CARE HOME FEES
SECTION 10.39A. The Department of Health and Human Services, Division of Child Development, shall develop a plan proposing fees for the licensing of family child care homes. The Department shall report on the plan to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than April 1, 2004.
SECTION 10.40.(a) Of the funds appropriated to the Department of Health and Human Services, the sum of forty-three million one hundred twenty-one thousand eight hundred dollars ($43,121,800) in the 2003-2004 fiscal year and the sum of forty-one million nine hundred twenty-one thousand eight hundred dollars ($41,921,800) in the 2004-2005 fiscal year shall be used to implement "More At Four", a voluntary prekindergarten program for at-risk four-year-olds.
SECTION 10.40.(b) The Department of Health and Human Services and the Department of Public Instruction shall establish the "More At Four" Pre-K Task Force to oversee development and implementation of the pilot program. The membership shall include:
(1) Parents of at-risk children.
(2) Representatives with expertise in early childhood development.
(3) Classroom teachers who are certified in early childhood education.
(4) Representatives of the private not-for-profit and for-profit child care providers in North Carolina.
(5) Employees of the Department of Health and Human Services who are knowledgeable in the areas of early childhood development, current State and federally funded efforts in child development, and providing child care.
(6) Representatives of local Smart Start partnerships.
(7) Representatives of local school administrative units.
(8) Representatives of Head Start prekindergarten programs in North Carolina.
(9) Employees of the Department of Public Instruction.
SECTION 10.40.(c) The Department of Health and Human Services and the Department of Public Instruction, with guidance from the Task Force, shall continue the implementation of the "More At Four" prekindergarten program for at-risk four-year-olds who are at risk of failure in kindergarten. The program is available statewide to all counties that choose to participate, including underserved areas. The goal of the program is to provide quality prekindergarten services to a greater number of at-risk children in order to enhance kindergarten readiness for these children. The program shall be consistent with standards and assessments established jointly by the Department of Health and Human Services, the Department of Public Instruction, and the Task Force and may consider the "More At Four" Pre-K Task Force recommendations. The program shall include:
(1) A process and system for identifying children at risk of academic failure.
(2) A process and system for identifying children who are not being served first priority in formal early education programs, such as child care, public or private preschools, Head Start, Early Head Start, early intervention programs, or other such programs, who demonstrate educational needs, and who are eligible to enter kindergarten the next school year, as well as children who are underserved.
(3) A curriculum or several curricula that are recommended by the Task Force. The Task Force will identify and approve appropriate research-based curricula. These curricula shall: (i) focus primarily on oral language and emergent literacy; (ii) engage children through key experiences and provide background knowledge requisite for formal learning and successful reading in the early elementary years; (iii) involve active learning; (iv) promote measurable kindergarten language-readiness skills that focus on emergent literacy and mathematical skills; and (v) develop skills that will prepare children emotionally and socially for kindergarten.
(4) An emphasis on ongoing family involvement with the prekindergarten program.
(5) Evaluation of child progress through pre- and post-assessment of children in the statewide evaluation, as well as ongoing assessment of the children by teachers.
(6) Guidelines for a system to reimburse local school boards and systems, private child care providers, and other entities willing to establish and provide prekindergarten programs to serve at-risk children.
(7) A system built upon existing local school boards and systems, private child care providers, and other entities that demonstrate the ability to establish or expand prekindergarten capacity.
(8) A quality-control system. Participating providers shall comply with standards and guidelines as established by the Department of Health and Human Services, the Department of Public Instruction, and the Task Force. The Department may use the child care rating system to assist in determining program participation.
(9) Standards for minimum teacher qualifications. A portion of the classroom sites initially funded shall have at least one teacher who is certified or provisionally certified in birth to kindergarten education.
(10) A local contribution. Programs must demonstrate that they are accessing resources other than "More At Four".
(11) A system of accountability.
(12) Collaboration with State agencies and other organizations. The Department of Health and Human Services, the Department of Public Instruction, and the Task Force shall collaborate with State agencies and other organizations such as the North Carolina Partnership for Children, Inc., in the design and implementation of the program.
(13) Consideration of the reallocation of existing funds. In order to maximize current funding and resources, the Department of Health and Human Services, the Department of Public Instruction, and the Task Force shall consider the reallocation of existing funds from State and local programs that provide prekindergarten related care and services.
(14) Recommendations for long-term organizational placement and administration of the program.
SECTION 10.40.(d) During the 2003-2004 fiscal year, the Department of Health and Human Services shall plan for expansion of the "More At Four" program within existing resources to include four and five star rated centers and schools serving four-year-olds and develop guidelines for these programs. The Department shall analyze guidelines for use of the "More At Four" funds, State subsidy funds, and Smart Start subsidy funds and devise a complementary plan for administration of funds for all four-year-old classrooms. The four and five star centers that choose to become a "More at Four" program shall, at a minimum, receive curricula and access to training and workshops for "More at Four" programs and be considered along with other "More at Four" programs for T.E.A.C.H. funding. The Department shall ensure that no individual receives funding from more than one source for the same purpose or activity during the same funding period. For purposes of this subsection, sources shall include T.E.A.C.H., W.A.G.E.$., and T.E.A.C.H. Health Insurance programs for individual recipients.
The Department may use nonobligated "More At Four" funds for the 2003-2004 fiscal year to reduce the waiting list for subsidy, with priority given to four-year-olds attending three star or better centers. If there are funds remaining after the waiting list for four-year-olds has been satisfied, then the waiting list for other children may be addressed with the remaining funds.
SECTION 10.40.(e) The Department of Health and Human Services, the Department of Public Instruction, and the Task Force shall submit a progress report by January 1, 2004, and May 1, 2004, to the Joint Legislative Commission on Governmental Operations, the Joint Legislative Education Oversight Committee, 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. This final report shall include the following:
(1) The number of children participating in the program.
(2) The number of children participating in the program who have never been served in other early education programs, such as child care, public or private preschool, Head Start, Early Head Start, or early intervention programs.
(3) The expected expenditures for the programs and the source of the local match for each grantee.
(4) The location of program sites and the corresponding number of children participating in the program at each site.
(5) Activities involving Child Find in counties.
(6) A comprehensive cost analysis of the program, including the cost per child served by the program.
(7) The plan for expansion of "More At Four" through existing resources as outlined in this section.
SUBPART 6. OFFICE OF EDUCATIONAL SERVICES
SECTION 10.42.(a) Funds appropriated to the Department of Health and Human Services, Division of Aging, for the 2003-2005 fiscal biennium, shall be used by the Division of Aging to enhance senior center programs as follows:
(1) To expand the outreach capacity of senior centers to reach unserved or underserved areas; or
(2) To provide start-up funds for new senior centers.
All of these funds shall be allocated by October 1 of each fiscal year.
SECTION 10.42.(b) Prior to funds being allocated pursuant to this section for start-up funds for a new senior center, the county commissioners of the county in which the new center will be located shall:
(1) Formally endorse the need for such a center;
(2) Formally agree on the sponsoring agency for the center; and
(3) Make a formal commitment to use local funds to support the ongoing operation of the center.
SECTION 10.42.(c) State funding shall not exceed seventy-five percent (75%) of reimbursable costs.
SUBPART 8. DIVISION OF SOCIAL SERVICES
ADULT CARE HOME MODEL FOR COMMUNITY-BASED SERVICES
SECTION 10.43.(a) In keeping with the United States Supreme Court Decision in Olmstead vs. L.C. & E.W. and with State policy to provide appropriate services to clients in the least restrictive and most appropriate environment, the Department of Health and Human Services shall develop a model project for delivering community-based mental health, developmental disabilities, and substance abuse housing and services through adult care homes that have excess capacity. The model shall be designed for implementation on a pilot basis and shall address the following:
(1) Services that will be provided by the facility or under contract with the facility, including assistance with daily medication.
(2) Access of clients to mental health, developmental disabilities, and substance abuse services provided in the community, including transportation to services outside of the client's residence in the adult care home facility.
(3) Physical plant additions or changes necessary to provide for independent living of residents.
(4) Methods for assuring quality of services, resident safety, and cost-effectiveness.
(5) Consistency with the Department's Olmstead plan, other policies on community-integration, and disability plans adopted by the State.
SECTION 10.43.(b) The Department shall submit a final report on the development of the model to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on or before March 1, 2004. The report shall address the following:
(1) Proposed time and location for implementation of the pilot.
(2) Proposed number of residents to be placed and services to be provided directly by the facility or under contract with the facility.
(3) Method for evaluating the pilot, including services provided, on a regular basis.
(4) A description of the living environment for each resident and a comparison of how the living environment compares to that of other residents in the adult care home.
(5) Changes to State law necessary to implement the pilot.
(6) Projected cost to the State for pilot and statewide implementation.
CHILD SUPPORT PROGRAM/ENHANCED STANDARDS
(1) Cost per collections.
(2) Consumer satisfaction.
(3) Paternity establishments.
(4) Administrative costs.
(5) Orders established.
(6) Collections on arrearages.
(7) Location of absent parents.
(8) Other related performance measures.
The Department of Health and Human Services shall monitor the performance of each office and shall implement a system of reporting that allows each local office to review its performance as well as the performance of other local offices. The Department of Health and Human Services shall publish an annual performance report that shall include the statewide and local office performance of each child support office.
SPECIAL NEEDS ADOPTIONS INCENTIVE FUND
"§ 108A-50A. Special Needs Adoptions Incentive Fund.
(a) There is created a Special Needs Adoptions Incentive Fund to provide financial assistance to facilitate the adoption of certain children residing in licensed foster care homes. These funds shall be used to remove financial barriers to the adoption of these children and shall be available to foster care families who adopt children with special needs, as defined by the Social Services Commission. These funds shall be matched by county funds.
(b) This program shall not constitute an entitlement and is subject to the availability of funds.
(c) The Social Services Commission shall adopt rules to implement the provisions of this section."
FOSTER CARE AND ADOPTION ASSISTANCE PAYMENTS
(1) $365.00 per child per month for children aged birth through 5;
(2) $415.00 per child per month for children aged 6 through 12; and
(3) $465.00 per child per month for children aged 13 through 18.
Of these amounts, fifteen dollars ($15.00) is a special needs allowance for the child.
(1) $365.00 per child per month for children aged birth through 5;
(2) $415.00 per child per month for children aged 6 through 12; and
(3) $465.00 per child per month for children aged 13 through 18.
(1) $800.00 per child per month with indeterminate HIV status;
(2) $1,000 per child per month confirmed HIV-infected, asymptomatic;
(3) $1,200 per child per month confirmed HIV-infected, symptomatic; and
(4) $1,600 per child per month terminally ill with complex care needs.
SPECIAL CHILDREN ADOPTION FUND
INTENSIVE FAMILY PRESERVATION SERVICES FUNDING AND PERFORMANCE ENHANCEMENTS
SECTION 10.48.(b) Notwithstanding the provisions of G.S. 143B-150.6, the Program shall provide intensive services to children and families in cases of abuse, neglect, and dependency where a child is at imminent risk of removal from the home and to children and families in cases of abuse where a child is not at imminent risk of removal. The Program shall be developed and implemented statewide on a regional basis. The revised IFPS shall ensure the application of standardized assessment criteria for determining imminent risk and clear criteria for determining out-of-home placement.
SECTION 10.48.(c) The Department of Health and Human Services shall require that any program or entity that receives State, federal, or other funding for the purpose of Intensive Family Preservation Services shall provide information and data that allows for:
(1) An established follow-up system with a minimum of six months of follow-up services.
(2) Detailed information on the specific interventions applied including utilization indicators and performance measurement.
(3) Cost-benefit data.
(4) Data on long-term benefits associated with Intensive Family Preservation Services. This data shall be obtained by tracking families through the intervention process.
(5) The number of families remaining intact and the associated interventions while in IFPS and 12 months thereafter.
(6) The number and percentage by race of children who received Intensive Family Preservation Services compared to the ratio of their distribution in the general population involved with Child Protective Services.
SECTION 10.48.(e) The Department of Health and Human Services shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than April 1, 2004. The report shall include information and data collected pursuant to subsection (c) of this section.
SECTION 10.49.(a) The General Assembly approves the plan titled "North Carolina Temporary Assistance for Needy Families State Plan FY 2003-2005", prepared by the Department of Health and Human Services and presented to the General Assembly on April 28, 2003, as revised in accordance with subsection (b) of this section. The North Carolina Temporary Assistance for Needy Families State Plan covers the period October 1, 2003, through September 30, 2005. The Department shall submit the State Plan, as revised in accordance with subsection (b) of this section, to the United States Department of Health and Human Services as amended by this act or any other act of the 2003 General Assembly.
SECTION 10.49.(b) The Department of Health and Human Services shall revise the North Carolina Temporary Assistance for Needy Families State Plan FY 2003-2005, submitted to the General Assembly for approval on April 28, 2003. The revisions shall be made to the following Plan components:
(1) Enhanced Employee Assistance Program to reflect changes in funding.
(2) Services for Families to remove reference to start-up activities.
(3) Work Responsibility to remove reference to start-up activities.
(4) Cabarrus County Waiver to reflect changes in the law made by the 2003 General Assembly.
(5) Goal number eight to provide that caseload reduction goals are subject to economic conditions in the county.
SECTION 10.49.(c) The counties approved as Electing Counties in North Carolina's Temporary Assistance for Needy Families State Plan FY 2003-2005 as approved by this section are: Beaufort, Caldwell, Iredell, Lenoir, Lincoln, Macon, McDowell, Sampson, and Wilkes.
SECTION 10.49.(d) Counties designated as Electing Counties pursuant to G.S. 108A-27(d) and who submitted the letter of intent to be redesignated as a standard county and the accompanying county plan for fiscal years 2003 through 2005, pursuant to G.S. 108A-27(e), shall operate under the standard county budget requirements effective July 1, 2003. Counties that submitted the letter of intent to remain as an Electing County or to be redesignated as an Electing County and the accompanying county plan for fiscal years 2003 through 2005, pursuant to G.S. 108A-27(e), shall operate under the Electing County budget requirements effective July 1, 2003. For programmatic purposes, all counties referred to in this subsection shall remain under their current county designation through September 30, 2003.
ELECTING COUNTY TANF FUNDS REVERT
SECTION 10.50. G.S. 108A-27.11(c) reads as rewritten:
"(c) Each Electing
County's allocation for Work First Family Assistance shall be computed based on
the percentage of each Electing County's total expenditures for cash assistance
to statewide actual expenditures for cash assistance in 1995-96. The resulting
percentage shall be applied to the federal TANF block grant funds appropriated
for cash assistance by the General Assembly each fiscal year. The Department
shall transmit the federal funds contained in the county block grants to
Electing Counties as soon as practicable after they become available to the
State and in accordance with federal cash management laws and regulations. The
Department shall transmit one-fourth of the State funds contained in county
block grants to Electing Counties at the beginning of each quarter."
SPECIAL ASSISTANCE IN-HOME PROGRAM
SECTION 10.51.(a) The Department of Health and Human Services may use funds from the existing State-County Special Assistance for Adults budget to provide Special Assistance payments to eligible individuals in in-home living arrangements. These payments may be made for up to 800 individuals during the 2003-2004 fiscal year and the 2004-2005 fiscal year. The standard monthly payment to individuals enrolled in the Special Assistance in-home program shall be fifty percent (50%) of the monthly payment the individual would receive if the individual resided in an adult care home and qualified for Special Assistance, except if a lesser payment amount is appropriate for the individual as determined by the local case manager. For State fiscal year 2003-2004, qualified individuals shall not receive payments at rates less than they would have been eligible to receive in State fiscal year 2002-2003. The Department shall implement Special Assistance in-home eligibility policies and procedures to assure that in-home program participants are those individuals who need and, but for the in-home program, would seek placement in an adult care home facility. The Department's policies and procedures shall include the use of a functional assessment. The Department shall make this in-home option available to all counties on a voluntary basis. To the maximum extent possible, the Department shall consider geographic balance in the dispersion of payments to individuals across the State.
SECTION 10.51.(b) The Department shall report on or before January 1, 2004, and on or before January 1, 2005, to the cochairs of the House of Representatives Appropriations Committee, the House of Representatives Appropriations Subcommittee on Health and Human Services, the cochairs of the Senate Appropriations Committee, and the cochairs of the Senate Appropriations Committee on Health and Human Services. This report shall include the following information:
(1) A description of cost savings that result from allowing individuals eligible for State-County Special Assistance the option of remaining in the home.
(2) A complete fiscal analysis of the in-home option to include all federal, State, and local funds expended.
(3) How much case management is needed and which types of individuals are most in need of case management.
(4) The geographic location of individuals receiving payments under this section.
(5) A description of the services purchased with these payments.
(6) A description of the income levels of individuals who receive payments under this section and the impact on the Medicaid program.
(7) Findings and recommendations as to the feasibility of continuing or expanding the in-home program.
(8) The level and quantity of services (including personal care services) provided to the demonstration project participants compared to the level and quantity of services for residents in adult care homes.
SECTION 10.51.(c) The Department shall incorporate data collection tools designed to compare quality of life among institutionalized versus noninstitutionalized populations (i.e., an individual's perception of his or her own health and well-being, years of healthy life, and activity limitations). To the extent national standards are available, the Department shall utilize those standards.
STATE/COUNTY SPECIAL ASSISTANCE
SECTION 10.52.(b) The maximum monthly rate for residents in adult care home facilities shall be one thousand ninety-one dollars ($1,091) per month per resident through September 30, 2003.
(1) The eligibility of Special Assistance recipients who reside in adult care homes on September 30, 2003, and remain continuously eligible shall not be affected by an income reduction in the Special Assistance eligibility criteria, providing these recipients are otherwise eligible. The maximum monthly rate for these residents in adult care home facilities shall be one thousand ninety-one dollars ($1,091) per month per resident; and
(2) The standard of need level for coverage eligibility under State/County Special Assistance, for individuals not enrolled or recipients of the program on September 30, 2003, shall be not less than one thousand ninety-one dollars ($1,091) per month per individual, but the monthly reimbursement rate for such individuals shall be the amount established under subsections (c) and (f) of this section. However, the Department of Health and Human Services, in its determination of reimbursement rates, may establish a minimum monthly reimbursement rate of not more than five dollars ($5.00) per month for any resident of an adult care home facility meeting the established standard of need level for coverage.
STATE/COUNTY SPECIAL ASSISTANCE TRANSFER OF ASSETS
SECTION 10.53.(a) G.S. 108A-46 is repealed.
SECTION 10.53.(b) Part 3 of Article 2 of Chapter 108A is amended by adding the following new section to read:
"§ 108A-46A. Transfer of assets for purposes of qualifying for State-county Special Assistance for adults.
Notwithstanding any other provision of law to the contrary, Supplemental Security Income (SSI) policy applicable to transfer of assets and estate recovery, as prescribed by federal law, shall apply to applicants for State-county Special Assistance."
SECTION 10.53.(c) The Department of Health and Human Services shall continue to review whether policy for State-county Special Assistance should be changed to permit an assisted living facility to accept from a family member of a resident who qualifies for State-county Special Assistance payment for the difference in the monthly rate for room, board, and services available. In reviewing current policy, the Department shall consider the following conditions on family contributions to the resident's cost of care:
(1) Ensuring that the resident meets all income and resource eligibility requirements for State-county Special Assistance.
(2) Not counting payments made by family members to the facility as income to the resident or as an in-kind contribution when calculating the monthly rate applicable to the resident.
(3) Ensuring that supplemental payments are made on a voluntary basis as specified in the resident agreement.
Not later than March 1, 2004, the Department shall report on its activities under this subsection 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.
LIMITATION ON STATE ABORTION FUND
SECTION 10.54. The limitations on funding of the performance of abortion established in Section 23.27 of Chapter 324 of the 1995 Session Laws, as amended by Section 23.8A of Chapter 507 of the 1995 Session Laws, apply to the 2003-2004 and 2004-2005 fiscal years.
CHILD WELFARE SYSTEM PILOTS SYSTEM
SECTION 10.56.(b) The Department of Health and Human Services shall evaluate the original pilot demonstration areas to determine the impact the alternative response system to child protective services has had in the following areas:
(1) Child safety.
(2) Timeliness of response.
(3) Timeliness of service.
(4) Coordination of local human services.
ELIMINATE REPORTING REQUIREMENTS FOR WORK FIRST PROGRAM
SECTION 10.57. G.S. 108A-27.2 reads as rewritten:
"§ 108A-27.2. General duties of the Department.
The Department shall have the following general duties with respect to the Work First Program:
(1) Ensure that the specifications of the general provisions of the State Plan regarding the procedures required when recipients are sanctioned, prescribed in G.S. 108A-27.9(c), are uniformly developed and implemented across the State;
(1a) Provide technical assistance to counties developing and implementing their County Plans, including providing information concerning applicable federal law and regulations and changes to federal law and regulations that affect the permissible use of federal funds and scope of the Work First Program in a county;
(1b) Reserved for future codification purposes.
(1c) Ensure that two-parent families receive cash assistance for three months after qualifying for assistance without being subject to pay for performance requirements, in order to encourage families to stay together and to overcome barriers to self-sufficiency and gainful employment. Cash assistance or diversion assistance received prior to being subject to pay for performance requirements is limited to one time within a 12-month period.
(2) Describe authorized federal and State work activities. For up to twenty percent (20%) of Work First recipients, authorized State work activities shall include at least part-time enrollment in a postsecondary education program. In Standard Counties, recipients enrolled on at least a part-time basis in a postsecondary education program and maintaining a 2.5 grade point average or its equivalent shall have their two-year time limit suspended for up to three years.
(3) Define requirements for assignment of child support income and compliance with child support activities;
(4) Establish a schedule for counties to submit their County Plans to ensure that all Standard County Plans are adopted by the Standard Program Counties by January 15 of each odd-numbered year and all Electing County Plans are adopted by Electing Counties by February 1 of each odd-numbered year and review and then recommend a State Plan to the General Assembly;
(5) Ensure that the County Plans comply with federal and State laws, rules, and regulations, are consistent with the overall purposes and goals of the Work First Program, and maximize federal receipts for the Work First Program;
(6) Prepare the State Plan in accordance with G.S. 108A-27.9 and federal laws and regulations and submit it to the Budget Director for approval;
(7) Submit the State Plan, as approved by the Budget Director, to the General Assembly for approval;
(8) Report
monthly to the Senate Appropriations Committee on Health and Human Services and
the House of Representatives Appropriations Subcommittee on Health and Human
Services on the monthly progress reports submitted by the counties to the
Department;
(9) Develop and implement a system to monitor and evaluate the impact of the Work First Program on children and families, including the impact of the Work First Program on job retention and advancement, child abuse and neglect, caseloads for child protective services and foster care, school attendance, academic and behavioral performance, and other measures of the economic security and health of children and families. The system should be developed to allow monitoring and evaluation of impact based on both aggregated and disaggregated data. State and county agencies shall cooperate in providing information needed to conduct these evaluations, sharing data and information except where prohibited specifically by federal law or regulation;
(10) Monitor the performance of
counties relative to their County Plans and the overall goals of the Work First
Program and report every six months to the Director of the Budget and the
Senate Appropriations Committee on Health and Human Services and the House of
Representatives Appropriations Subcommittee on Health and Human Services and
annually to the General Assembly on the counties' attainment of the outcomes
and goals;Program;
(11) Provide quarterly
progress reports to the county departments of social services, the county
boards of commissioners, and the Senate Appropriations Committee on Health and
Human Services and the House of Representatives Appropriations Subcommittee on
Health and Human Services on the performance of counties in achieving Work
First Program expectations;
(12) Report to the Senate
Appropriations Committee on Health and Human Services and the House of
Representatives Appropriations Subcommittee on Health and Human Services the
counties which have requested Electing status; provide copies of the proposed
Electing County Plans to [C]ommission and the members of the Senate
Appropriations Committee on Health and Human Services and the House of
Representatives Appropriations Subcommittee on Health and Human Services Services,
if requested; and make recommendations to the Senate Appropriations
Committee on Health and Human Services and the House of Representatives
Appropriations Subcommittee on Health and Human Services on which of the
proposed Electing County Plans ensure compliance with federal and State laws,
rules, and regulations and are consistent with the overall purposes and goals
for the Work First Program; and
(13) Make recommendations to the General Assembly for approval of counties to become Electing Counties which represent, in aggregate, no more than fifteen and one-half percent (15.5%) of the total Work First caseload at September 1 of each year and, for each county submitting a plan, the reasons individual counties were or were not recommended.
(14) Review the county Work First Program of each electing county and recommend whether the county should continue to be designated an electing county or whether it should be redesignated as a standard county. In conducting its review and making its recommendation, the Department shall:
a. Examine and consider the results of the Department's monitoring and evaluation of the impact of the electing county's Work First Program as required under subdivision (9) of this section;
b. Determine whether the electing county's Work First Program's unique design requires implementation by an electing county or whether the Work First Program could be implemented by a county designated as a standard county;
c. Determine whether the electing county's Work First Program and policies are unique and innovative in meeting the purpose of the Work First Program as stated under G.S. 108A-27, and State and federal laws, rules, and regulations, as compared to other standard and electing county Work First programs.
The Department shall make its recommendation and the reasons therefor to the Senate Appropriations Committee on Health and Human Services and the House of Representatives Appropriations Subcommittee on Health and Human Services not later than three months prior to submitting the State Plan to the Commission for review as required under G.S. 108A-27.9(a)."
SOCIAL SERVICES COMMISSION RULES ON RATE-SETTING FOR ADULT DAY CENTERS AND ADULT DAY HEALTH CENTERS
PART X-A. DEPARTMENT OF Agriculture and consumer Services
Study Commercial Production of Turtles
PART XI. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
SECTION 11.1.(a) Of the funds appropriated in this act to the Department of Environment and Natural Resources for the Grassroots Science Program, the sum of two million five hundred fifty-one thousand seven hundred sixty dollars ($2,551,760) for fiscal year 2003-2004 and the sum of two million five hundred fifty-one thousand seven hundred sixty dollars ($2,551,760) for fiscal year 2004-2005 are allocated as grants-in-aid for each fiscal year as follows:
2003-2004 2004-2005
Aurora Fossil Museum $56,690 $56,690
Cape Fear Museum $185,470 $185,470
Catawba Science Center $134,913 $134,913
Colburn Gem and Mineral Museum, Inc. $66,858 $66,858
Discovery Place $624,407 $624,407
Granville County Museum Commission,
Inc. - Harris Gallery $55,885 $55,885
The Health Adventure Museum of Pack
Place Education, Arts and
Science Center, Inc. $121,115 $121,115
Imagination Station $85,308 $85,308
Iredell County Children's Museum $6,616 $6,616
Museum of Coastal Carolina $69,311 $69,311
Natural Science Center of Greensboro $183,416 $183,416
North Carolina Museum of Life
and Science $388,283 $388,283
Rocky Mount Children's Museum $72,810 $72,810
Schiele Museum of Natural History $234,524 $234,524
Sci Works Science Center and
Environmental Park of Forsyth County $147,578 $147,578
Western North Carolina Nature Center $118,578 $118,578
Total $2,551,760 $2,551,760
SECTION 11.1.(b) Of the funds appropriated in this act to the Department of Environment and Natural Resources for the Grassroots Science Program, the sum of two hundred fifty thousand dollars ($250,000) for the 2003-2004 fiscal year is allocated as initial grants-in-aid of fifty thousand dollars ($50,000) to each of the following unfunded members of the Grassroots collaborative:
(1) Wilmington Children's Museum, Inc.
(2) Carolina Raptor Center, Inc.
(3) Highlands Nature Center
(4) Fascinate-U Children's Museum
(5) KidSenses, Inc.
SECTION 11.1.(c) It is the intent of the General Assembly that the museums receiving initial allocations under subsection (b) of this section shall receive recurring allocations in subsequent fiscal years based on the formula used to calculate the allocations under subsection (a) of this section.
STATEWIDE BEAVER DAMAGE CONTROL PROGRAM FUND
FUNDS FOR CLEANUP OF WARREN COUNTY PCB LANDFILL
(1) The detoxification and remediation of the landfill located in Warren County cannot be completed without these additional funds.
(2) All other funds, including all contingency funds, available to the Department for the detoxification and remediation of the landfill located in Warren County that contains polychlorinated biphenyl (PCBs) and dioxin/furan contaminated materials have been spent or encumbered.
COMMERCIAL AND NONCOMMERCIAL UNDERGROUND STORAGE TANK FUNDS
SECTION 11.4A.(a) The Department of Environment and Natural Resources may develop the Express Review Pilot Program, a pilot program to provide express permit and certification reviews. Participation in the Express Review Pilot Program is voluntary, and the program is to become supported by the fees determined pursuant to subsection (b) of this section. The Department of Environment and Natural Resources shall determine the project applications to review under the Express Review Pilot Program from those who request to participate in the Pilot Program. The Express Review Pilot Program may be applied to any one or all of the permits, approvals, or certifications in the following programs: the erosion and sedimentation control program, the coastal management program, and the water quality programs, including water quality certifications and stormwater management. The Express Review Pilot Program shall focus on the following permits or certifications:
(1) Stormwater permits under Part 1 of Article 21 of Chapter 143 of the General Statutes.
(2) Stream origination certifications under Article 21 of Chapter 143 of the General Statutes.
(3) Water quality certification under Article 21 of Chapter 143 of the General Statutes.
(4) Erosion and sedimentation control permits under Article 4 of Chapter 113A of the General Statutes.
(5) Permits under the Coastal Area Management Act (CAMA), Part 4 of Article 7 of Chapter 113A of the General Statutes.
SECTION 11.4A.(b) The Department of Environment and Natural Resources may establish up to eight positions to administer the Express Review Pilot Program and may determine the fees for express application review under the Pilot Program. Notwithstanding G.S. 143-215.3D, the maximum permit application fee to be charged under subsection (a) of this section for the express review of a project application requiring all of the permits under subdivisions (1) through (5) of subsection (a) of this section shall not exceed five thousand five hundred dollars ($5,500). Notwithstanding G.S. 143-215.3D, the maximum permit application fee to be charged for the express review of a project application requiring all of the permits under subdivisions (1) through (4) of subsection (a) of this section shall not exceed four thousand five hundred dollars ($4,500). Notwithstanding G.S. 143-215.3D, the maximum permit application fee charged for the express review of a project application for any other combination of permits under subdivisions (1) through (5) of subsection (a) of this section shall not exceed four thousand dollars ($4,000). Express review of a project application involving additional permits or certifications issued by the Department of Environment and Natural Resources other than those under subdivisions (1) through (5) of subsection (a) of this section may be allowed by the Department, and, notwithstanding G.S. 143-215.3D or any other statute or rule that sets a permit fee, the maximum permit application fee charged for the express review of a project application shall not exceed four thousand dollars ($4,000), plus one hundred fifty percent (150%) of the fee that would otherwise apply by statute or rule for that particular permit or certification. Additional fees, not to exceed fifty percent (50%) of the original permit application fee under this section, may be charged for subsequent reviews due to the insufficiency of the permit applications. The Department of Environment and Natural Resources may establish the procedure by which the amount of the fees under this subsection is determined, and the fees and procedures are not rules under G.S. 150B-2(8a) for the Express Review Pilot Program under this section.
SECTION 11.4A.(c) The funds appropriated to the Department of Environment and Natural Resources in this act for the 2003-2004 fiscal year shall be used for the costs of implementing the Express Review Pilot Program under this section during the 2003-2004 fiscal year.
SECTION 11.4A.(d) The Express Review Fund is created as a special nonreverting fund. The Express Review Fund shall be used for the costs of implementing the Express Review Pilot Program under this section. All fees collected under this section shall be credited to the Express Review Fund. If the Express Review Pilot Program is abolished, the funds in the Express Review Fund shall be credited to the General Fund.
SECTION 11.4A.(e) No later than May 1, 2004, the Department of Environment and Natural Resources shall report to the General Assembly its findings on the success of the Express Review Pilot Program and whether it recommends that the Pilot Program be continued or expanded.
COST SHARE FUNDS FOR LIMITED RESOURCE/NEW FARMERS
SECTION 11.6. G.S. 143-215.74(b) reads as rewritten:
"(b) The program shall be subject to the following requirements and limitations:
(1) The purpose of the program shall be to reduce the input of agricultural nonpoint source pollution into the water courses of the State.
(2) The program shall initially include the present 16 nutrient sensitive watershed counties and 17 additional counties.
(3) Subject to subdivision (7) of this subsection, priority designations for inclusions in the program shall be under the authority of the Soil and Water Conservation Commission. The Soil and Water Conservation Commission shall retain the authority to allocate the cost share funds.
(4) Areas shall be included in the program as the funds are appropriated and the technical assistance becomes available from the local Soil and Water Conservation District.
(5) Funding may be provided to assist practices including conservation tillage, diversions, filter strips, field borders, critical area plantings, sedimentation control structures, sod-based rotations, grassed waterways, strip-cropping, terraces, cropland conversion to permanent vegetation, grade control structures, water control structures, closure of lagoons, emergency spillways, riparian buffers or equivalent controls, odor control best management practices, insect control best management practices, and animal waste management systems and application. Funding for animal waste management shall be allocated for practices in river basins such that the funds will have the greatest impact in improving water quality.
(6) Except as provided in subdivision (8) and subdivision (9) of this subsection, State funding shall be limited to seventy-five percent (75%) of the average cost for each practice with the assisted farmer providing twenty-five percent (25%) of the cost, which may include in-kind support of the practice, with a maximum of seventy-five thousand dollars ($75,000) per year to each applicant.
(7) Priority designation for inclusion in the program for State funding shall be given to projects that improve water quality. To be eligible for cost share funds under this subdivision, a project shall be evaluated before funding is awarded and after the project is completed to determine the impact on water quality.
(8) For practices that are eligible for funding from the federal Conservation Reserve Enhancement Program, State funding from the program shall be limited to seventy-five percent (75%) of the average cost of each practice, with the remainder paid from funding from the Conservation Reserve Enhancement Program, other available federal funds, other State funds, or the assisted farmer, whose contribution may include in-kind support of the practice. This subdivision is subject to subdivision (9) of this subsection.
(9) When the applicant is either a limited-resource farmer or a beginning farmer, State funding shall be limited to ninety percent (90%) of the average cost for each practice with the assisted farmer providing ten percent (10%) of the cost, which may include in-kind support of the practice, with a maximum of one hundred thousand dollars ($100,000) per year to each applicant. The following definitions apply in this subdivision:
a. Beginning farmer. - A farmer who has not operated a farm or who has operated a farm for not more than 10 years and who will materially and substantially participate in the operation of the farm.
b. Limited-resource farmer. - A farmer with direct and indirect gross farm sales that do not exceed one hundred thousand dollars ($100,000).
c. Materially and substantially participate. -
1. In the case of an individual, for the individual, including members of the immediate family of the individual, to provide substantial day-to-day labor and management of the farm, consistent with the practices in the county in which the farm is located.
2. In the case of an entity, for all members of the entity, to participate in the operation of the farm, with some members providing management and some members providing labor and management necessary for day-to-day activities such that if the members did not provide the management and labor, the operation of the farm would be seriously impaired."
SECTION 11.7.(a) The Property Tax Subcommittee of the Revenue Laws Study Committee shall study the positive and negative impacts of the acquisition of land by the State and non-profit organizations using money from the Clean Water Management Trust Fund and other State funds for conservation purposes on local government ad valorem tax revenues. In conducting this study, the Subcommittee may consider efforts by other states and the federal government to mitigate the negative impacts of acquisition of land by government or non-profit organizations for conservation purposes on local government ad valorem tax revenues.
CLEAN WATER MANAGEMENT TRUST FUND APPROPRIATION/FARMLAND PRESERVATION PROJECTS
State Match for Federal safe drinking water Act Funds
PART XII. DEPARTMENT OF COMMERCE
WANCHESE SEAFOOD INDUSTRIAL PARK/OREGON INLET FUNDS
SECTION 12.1.(a) Of the funds appropriated in this act to the Department of Commerce for the Wanchese Seafood Industrial Park, the sum of one hundred twenty-seven thousand eight hundred seventy dollars ($127,870) for the 2003-2004 fiscal year and the sum of one hundred twenty-seven thousand eight hundred seventy dollars ($127,870) for the 2004-2005 fiscal year may be expended by the North Carolina Seafood Industrial Park Authority for operations, maintenance, repair, and capital improvements in accordance with Article 23C of Chapter 113 of the General Statutes, in addition to funds available to the Authority for these purposes.
SECTION 12.1.(b) Funds appropriated to the Department of Commerce for the 2002-2003 fiscal year for the Oregon Inlet Project that are unexpended and unencumbered as of June 30, 2003, shall not revert to the General Fund on June 30, 2003, but shall remain available to the Department for legal costs associated with the Project. This section becomes effective June 30, 2003.
SECTION 12.2.(e) Each council of government or lead regional organization shall do the following:
(1) By January 15, 2004, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2002-2003 program activities, objectives, and accomplishments;
b. State fiscal year 2002-2003 itemized expenditures and fund sources;
c. State fiscal year 2003-2004 planned activities, objectives, and accomplishments, including actual results through December 31, 2003; and
d. State fiscal year 2003-2004 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2003;
(2) By January 15, 2005, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2003-2004 program activities, objectives, and accomplishments;
b. State fiscal year 2003-2004 itemized expenditures and fund sources;
c. State fiscal year 2004-2005 planned activities, objectives, and accomplishments, including actual results through December 31, 2004; and
d. State fiscal year 2004-2005 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2004; and
(3) Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.
(1) Counties 1 through 20 are each eligible to receive a maximum grant of seven thousand five hundred dollars ($7,500) for each fiscal year, provided these funds are matched on the basis of one non-State dollar for every four State dollars.
(2) Counties 21 through 50 are each eligible to receive a maximum grant of three thousand five hundred dollars ($3,500) for two of the next three fiscal years, provided these funds are matched on the basis of one non-State dollar for every three State dollars.
(3) Counties 51 through 100 are each eligible to receive a maximum grant of three thousand five hundred dollars ($3,500) for alternating fiscal years, beginning with the 1991-1992 fiscal year, provided these funds are matched on the basis of four non-State dollars for every State dollar.
ONE NORTH CAROLINA - INDUSTRIAL RECRUITMENT COMPETITIVE FUND
SECTION 12.4.(a) Funds appropriated to the Department of Commerce for the One North Carolina - Industrial Recruitment Competitive Fund, unless specifically allocated in this act for another purpose, shall be used to continue the Fund. The purpose of the Fund is to provide financial assistance to those businesses or industries deemed by the Governor to be vital to a healthy and growing State economy and that are making significant efforts to establish or expand in North Carolina.
SECTION 12.4.(b) Moneys allocated from the One North Carolina - Industrial Recruitment Competitive Fund shall be used for the following purposes:
(1) Installation or purchase of equipment.
(2) Structural repairs, improvements, or renovations of existing buildings to be used for expansion.
(3) Construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines or equipment for existing buildings.
(4) Any other purposes specifically provided by an act of the General Assembly.
Moneys may also be used for construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines or equipment to serve new or proposed industrial buildings used for manufacturing and industrial operations. The Governor shall adopt guidelines and procedures for the commitment of moneys from the Fund.
SECTION 12.4.(e) This section becomes effective June 30, 2003.
NORTH CAROLINA EDUCATIONAL DEVELOPMENT
(1) Installation or purchase of equipment for educational facilities in this State.
(2) Structural repairs, improvements, or renovations of existing academic buildings in this State to be used for expansion.
(3) Construction of or improvements to new or existing water, sewer, gas, or electric utility distribution lines or equipment for new or existing academic facilities in this State.
(4) Construction of new academic facilities in this State.
SECTION 12.5.(b) This section becomes effective June 30, 2003.
SECTION 12.6.(a) There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of five million dollars ($5,000,000) for the 2003-2004 fiscal year for the operation of local offices.
SECTION 12.6.(b) Notwithstanding the provisions of G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the following agencies the following sums for the 2003-2004 fiscal year for the following purposes:
(1) One hundred ninety-three thousand eight hundred seventy-nine dollars ($193,879) for the 2003-2004 fiscal year to the Employment Security Commission for the State Occupational Information Coordinating Committee to develop and operate an interagency system to track former participants in State education and training programs;
(2) Fifty-three thousand eight hundred fifty-six dollars ($53,856) for the 2003-2004 fiscal year to the Employment Security Commission to maintain compliance with Chapter 96 of the General Statutes, which directs the Commission to employ the Common Follow-Up Management Information System to evaluate the effectiveness of the State's job training, education, and placement programs;
(3) Eight hundred sixty-one thousand six hundred eighty-four dollars ($861,684) for the 2003-2004 fiscal year to the Department of Labor to continue the Apprenticeship Program; and
(4) One hundred twenty thousand dollars ($120,000) for the 2003-2004 fiscal year to the Community Colleges System Office for a training program in entrepreneurial skills to be operated by North Carolina REAL Enterprises.
(5) One hundred twenty thousand dollars ($120,000) for the 2003-2004 fiscal year to the Community Colleges System Office for the operation of the Hosiery Technology Center.
SECTION 12.6.(c) The agencies listed in subsections (a) and (b) of this section shall, by January 15, 2004, and more frequently as requested, for the programs for which funds are appropriated in this section, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
(1) State fiscal year 2003-2004 program activities, objectives, and accomplishments;
(2) State fiscal year 2003-2004 itemized expenditures and fund sources;
(3) State fiscal year 2004-2005 planned activities, objectives, and accomplishments including actual results through December 31, 2003; and
(4) State fiscal year 2004-2005 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2003.
SECTION 12.6.(d) Notwithstanding the provisions of G.S. 96-5(f), funds appropriated for 2002-2003 from the Worker Training Trust Fund to the Community Colleges System Office for both the Focused Industrial Training Program and the Training Initiatives shall not revert but shall remain available to the System Office for personnel and non-personnel support of each program in fiscal year 2003-2004.
Film Industry Development Account
SECTION 12.6A.(a) G.S. 143B-434.3 is repealed.
"§ 143B-434.4. Film Industry Development Account.
(a) Legislative Findings and Purpose. - The General Assembly finds that:
(1) It is the policy of the State of North Carolina to stimulate economic activity and to create new jobs for the citizens of the State by encouraging and promoting the growth and expansion of businesses and industries within the State.
(2) The North Carolina film production industry barely existed in the late 1970s.
(3) Since that time, the North Carolina film production industry has grown to employ thousands of North Carolinians and to support seven studio complexes, hundreds of production service and support companies, and a substantial permanent resident crew base of film professionals, all of which contribute to the economy of the State and are a source of tax revenue for the State and local governments.
(4) North Carolina, through its film industry, has hosted over 600 productions over the past 20 years, is regarded as the country's third largest film-making state behind California and New York, and has hosted productions in at least 75 out of North Carolina's 100 counties.
(5) Because of the nature of the national film production industry, the success and economic viability of North Carolina's film production industry depend in many respects on the State's ability to attract productions originating from other states such as California and New York to undertake production activity in North Carolina utilizing the State's existing film industry infrastructure.
(6) The national film production industry is a highly creative industry in which decisions to film productions in North Carolina are typically made outside of the State and are frequently based upon factors such as cost of production.
(7) However, current trends in the industry, including trends in foreign countries such as Canada, to develop new and creative means to attract, and to cut production costs for, the type of productions that, in the past, have sustained North Carolina's film industry, threaten the viability of the State's investments in its film industry and film production infrastructure.
(8) Recent changes in the State's economic condition have created a level of economic distress that requires a reevaluation of certain existing State programs, and the enactment and funding of programs such as the Film Industry Development Account are designed to stimulate new economic activity and to create new jobs and opportunities for employment within the State.
(9) The enactment, funding, and administration of this program are necessary to stimulate the economy, facilitate economic recovery, create new jobs in North Carolina, and help sustain and preserve the State's investments in the film production industry and will promote the general welfare and confer, as its primary purpose and effect, benefits on citizens throughout the State through the creation of new jobs and opportunities for employment, an enlargement of the overall tax base, an expansion and diversification of the State's industrial base, and an increase in revenue to the State and its political subdivisions, in accord with the policies declared in G.S. 143B-428.
(10) The purpose of the Film Industry Development Account is to stimulate economic activity and to create jobs and employment opportunities within the State.
(b) Creation of Account. - There is created in the Department of Commerce, Division of Tourism, Film, and Sports Development, the Film Industry Development Account to provide annual grants as incentives to production companies that engage in production activities in this State. The Division of Tourism, Film, and Sports Development shall administer this program in accordance with the following provisions:
(1) To be eligible for a grant, a production company must engage in production activities in this State with expenditures in this State of at least one million dollars ($1,000,000). A grant may not be used for political or issue advertising.
(2) A grant may not exceed fifteen percent (15%) of the amount the production company spends for goods and services in this State during the calendar year.
(3) A grant may not exceed two hundred thousand dollars ($200,000) per production.
(4) Grants shall be awarded to productions that substantially utilize North Carolina's film industry infrastructure and workforce, that stimulate economic activity within the State, and that create employment opportunities within the State.
(c) Production Company Defined. - As used in this section, the term "production company" has the meaning provided in G.S. 105-164.3.
(d) Limitation on Eligibility. - No production company shall be eligible for a grant under this section if an original motion picture, television, or radio image for theatrical, commercial, advertising, or educational purposes made by that company contains material that is considered obscene, as defined by G.S. 14-190.1(b).
(e) Reports. - The Department of Commerce shall report annually to the General Assembly concerning the applications made to the account, the payments made from the account, and the effect of the payments on job creation in the State. The Department of Commerce shall also report quarterly to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the use of the moneys in the account, including information regarding to whom payments were made and in what amounts."
SECTION 12.6A.(c) G.S. 143B-430 is amended by adding a new subsection to read:
"(c) The Secretary of Commerce may adopt rules to administer a program or fulfill a duty assigned to the Department of Commerce or the Secretary of Commerce."
SECTION 12.6A.(d) This section becomes effective on and after August 2, 2000.
INDUSTRIAL COMMISSION FEES/COMPUTER SYSTEM REPLACEMENT
SECTION 12.6C.(a) The North Carolina Industrial Commission may retain the additional revenue generated by raising the fee charged to parties for the filing of compromised settlements from two hundred dollars ($200.00) to an amount that does not exceed two hundred fifty dollars ($250.00) for the purpose of replacing existing computer hardware and software used for the operations of the Commission. These funds may also be used to prepare any assessment of hardware and software needs prior to purchase. The Commission may not retain any fees under this section unless they are in excess of the current two-hundred-dollar ($200.00) fee charged by the Commission for filing a compromise settlement.
SECTION 12.6C.(d) All plans and purchases by the Commission utilizing fees retained under subsection (a) of this section are subject to project certification by the Information Resources Management Commission, and the Commission in making purchases under subsection (a) of this section must follow the procurement process outlined in accordance with the provisions of 09 NCAC 06B. 0300. The Commission shall report its plans to replace existing computer hardware and software to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division prior to issuing any requests for proposals.
Film Industry development Funds
(1) The production will include at least 12 episodes.
(2) The production will provide a gross payroll of over seven million dollars ($7,000,000) and involve over four million dollars ($4,000,000) in goods and services a year.
(3) The production will provide well-paying employment, including over 100 full-time jobs and several thousand part-time jobs, resulting in estimated State payroll taxes of more than five hundred thousand dollars ($500,000) a year.
(4) The estimated sales taxes, accommodations taxes, and rental car taxes from the production will be more than thirty-five thousand dollars ($35,000) a year.
(5) The production will utilize existing film production facilities and benefit the State through the tourism, marketing, and recognition effects it will have.
Film Development Account Funds Do Not Revert
REGIONAL ECONOMIC DEVELOPMENT COMMISSION ALLOCATIONS
SECTION 12.7.(b) Funds appropriated pursuant to subsection (a) of this section shall be allocated to each Regional Economic Development Commission as follows:
(1) First, the Department shall establish each Commission's allocation by determining the sum of allocations to each county that is a member of that Commission. Each county's allocation shall be determined by dividing the county's enterprise factor by the sum of the enterprise factors for eligible counties and multiplying the resulting percentage by the amount of the appropriation. As used in this subdivision, the term "enterprise factor" means a county's enterprise factor as calculated under G.S. 105-129.3; and
(2) Next, the Department shall subtract from funds allocated to the Global TransPark Development Commission the sum of one hundred seventy-one thousand nine hundred seventy-nine dollars ($171,979) in each fiscal year, which sum represents the interest earnings in each fiscal year on the estimated balance of seven million five hundred thousand dollars ($7,500,000) appropriated to the Global TransPark Development Zone in Section 6 of Chapter 561 of the 1993 Session Laws; and
(3) Next, the Department shall redistribute the sum of one hundred seventy-one thousand nine hundred seventy-nine dollars ($171,979) in each fiscal year to the seven Regional Economic Development Commissions named in subsection (a) of this section. Each Commission's share of this redistribution shall be determined according to the enterprise factor formula set out in subdivision (1) of this subsection. This redistribution shall be in addition to each Commission's allocation determined under subdivision (1) of this subsection.
REGIONAL ECONOMIC DEVELOPMENT COMMISSION REPORTS
(1) The preceding fiscal year's program activities, objectives, and accomplishments.
(2) The preceding fiscal year's itemized expenditures and fund sources.
(3) Demonstration of how the commission's regional economic development and marketing strategy aligns with the State's overall economic development and marketing strategies.
(4) To the extent they are involved in promotion activities such as trade shows, visits to prospects and consultants, advertising and media placement, the commissions shall demonstrate how they have generated qualified leads.
(1) The Global TransPark Development Commission shall contribute to the cost of the study by retaining a consultant familiar with the partnership.
(2) The Study shall be conducted by a designee of the North Carolina Partnership for Economic Development determined by the Partnership Presidents, a designee of the UNC Kenan-Flager School of Business, and the consultant retained by the Global TransPark Development Commission.
(3) None of the eastern regional commissions shall be consolidated.
(4) The results of the study shall be submitted to the Fiscal Research Division and members of the North Carolina Partnership for Economic Development prior to the beginning of the 2004 Regular Session of the 2003 General Assembly.
NONPROFIT REPORTING REQUIREMENTS
SECTION 12.9.(a) The N.C. Institute for Minority Economic Development, Inc., Land Loss Prevention Project, North Carolina Minority Support Center, North Carolina Community Development Initiative, Inc., North Carolina Association of Community Development Corporations, Inc., Coalition of Farm and Rural Families, and Partnership for the Sounds, Inc., shall do the following:
(1) By January 15, 2004, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2002-2003 program activities, objectives, and accomplishments;
b. State fiscal year 2002-2003 itemized expenditures and fund sources;
c. State fiscal year 2003-2004 planned activities, objectives, and accomplishments including actual results through December 31, 2003; and
d. State fiscal year 2003-2004 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2003;
(2) By January 15, 2005, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2003-2004 program activities, objectives, and accomplishments;
b. State fiscal year 2003-2004 itemized expenditures and fund sources;
c. State fiscal year 2004-2005 planned activities, objectives, and accomplishments including actual results through December 31, 2004; and
d. State fiscal year 2004-2005 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2004; and
(3) Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.
SECTION 12.9.(b) No funds appropriated under this act shall be released to a nonprofit organization listed in subsection (a) of this section until the organization has satisfied the reporting requirement for January 15, 2003. Fourth quarter allotments shall not be released to any nonprofit organization that does not satisfy the reporting requirements by January 15, 2004, or January 15, 2005.
SECTION 12.10.(c) The North Carolina Biotechnology Center shall:
(1) By January 15, 2004, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2002-2003 program activities, objectives, and accomplishments;
b. State fiscal year 2002-2003 itemized expenditures and fund sources;
c. State fiscal year 2003-2004 planned activities, objectives, and accomplishments including actual results through December 31, 2003; and
d. State fiscal year 2003-2004 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2003;
(2) By January 15, 2005, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2003-2004 program activities, objectives, and accomplishments;
b. State fiscal year 2003-2004 itemized expenditures and fund sources;
c. State fiscal year 2004-2005 planned activities, objectives, and accomplishments including actual results through December 31, 2004; and
d. State fiscal year 2004-2005 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2004; and
(3) Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.
Rural Economic Development Center
2003-2004 FY 2004-2005 FY
Research and Demonstration Grants $370,000 $370,000
Technical Assistance and Center
Administration of Research
and Demonstration Grants 444,399 444,399
Center Administration, Oversight,
and Other Programs 604,298 604,298
Administration of Clean Water/
Natural Gas Critical Needs
Bond Act of 1998 199,722 199,722
Additional Administration of Supplemental
Funding Program 138,278 138,278
Administration of Capacity Building
Assistance Program (1998 Bond Act) 125,000 125,000.
(1) Chartered pursuant to Chapter 55A of the General Statutes;
(2) Tax-exempt pursuant to section 501(c)(3) of the Internal Revenue Code of 1986;
(3) Whose primary mission is to develop and improve low-income communities and neighborhoods through economic and related development;
(4) Whose activities and decisions are initiated, managed, and controlled by the constituents of those local communities; and
(5) Whose primary function is to act as deal-maker and packager of projects and activities that will increase their constituencies' opportunities to become owners, managers, and producers of small businesses, affordable housing, and jobs designed to produce positive cash flow and curb blight in the targeted community.
(1) $1,047,410 in each fiscal year for community development grants to support development projects and activities within the State's minority communities. Any community development corporation as defined in this section is eligible to apply for funds. The Rural Economic Development Center, Inc., shall establish performance-based criteria for determining which community development corporation will receive a grant and the grant amount. The Rural Economic Development Center, Inc., shall allocate these funds as follows:
a. $800,000 in each fiscal year for direct grants to the local community development corporations that have previously received State funds for this purpose to support operations and project activities;
b. $197,410 in each fiscal year for direct grants to local community development corporations that have not previously received State funds; and
c. $50,000 in each fiscal year to the Rural Economic Development Center, Inc., to be used to cover expenses in administering this section.
(2) $195,000 in each fiscal year to the Microenterprise Loan Program to support the loan fund and operations of the Program; and
(3) $983,000 in each fiscal year shall be used for a program to provide supplemental funding for matching requirements for projects and activities authorized under this subsection. The Center shall allocate these funds as follows:
a. $675,000 in each fiscal year to make grants to local governments and nonprofit corporations to provide funds necessary to match federal grants or other grants for:
1. Necessary economic development projects and activities in economically distressed areas;
2. Necessary water and sewer projects and activities in economically distressed communities to address health or environmental quality problems except that funds shall not be expended for the repair or replacement of low-pressure pipe wastewater systems. If a grant is awarded under this sub-subdivision, then the grant shall be matched on a dollar-for-dollar basis in the amount of the grant awarded; or
3. Projects that demonstrate alternative water and waste management processes for local governments. Special consideration should be given to cost-effectiveness, efficacy, management efficiency, and the ability of the demonstration project to be replicated.
b. $208,000 in each fiscal year to make grants to local governments and nonprofit corporations to provide funds necessary to match federal grants or other grants related to water, sewer, or business development projects.
c. $100,000 in each fiscal year to support the update of the statewide water and sewer database and to support the development of a statewide water management plan.
(4) $190,500 in each fiscal year for the Agricultural Advancement Consortium. These funds shall be placed in a reserve and allocated as follows:
a. $75,000 in each fiscal year for operating expenses associated with the Consortium; and
b. $115,500 in each fiscal year for research initiatives funded by the Consortium.
The Consortium shall facilitate discussions among interested parties and shall develop recommendations to improve the State's economic development through farming and agricultural interests.
The grant recipients in this subsection shall be selected on the basis of need.
SECTION 12.11.(e) The Rural Economic Development Center, Inc., shall:
(1) By January 15, 2004, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2002-2003 program activities, objectives, and accomplishments;
b. State fiscal year 2002-2003 itemized expenditures and fund sources;
c. State fiscal year 2003-2004 planned activities, objectives, and accomplishments including actual results through December 31, 2003; and
d. State fiscal year 2003-2004 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2003.
(2) By January 15, 2005, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2003-2004 program activities, objectives, and accomplishments;
b. State fiscal year 2003-2004 itemized expenditures and fund sources;
c. State fiscal year 2004-2005 planned activities, objectives, and accomplishments including actual results through December 31, 2004; and
d. State fiscal year 2004-2005 estimated itemized expenditures and fund sources including actual expenditures and fund sources through December 31, 2004.
(3) Provide to the Fiscal Research Division a copy of each grant recipient's annual audited financial statement within 30 days of issuance of the statement.
OPPORTUNITIES INDUSTRIALIZATION CENTER FUNDS
SECTION 12.12.(a) Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of three hundred sixty-one thousand dollars ($361,000) for the 2003-2004 fiscal year and the sum of three hundred sixty-one thousand dollars ($361,000) for the 2004-2005 fiscal year shall be allocated as follows:
(1) $90,250 in each fiscal year to the Opportunities Industrialization Center of Wilson, Inc., for its ongoing job training programs;
(2) $90,250 in each fiscal year to the Opportunities Industrialization Center, Inc., in Rocky Mount, for its ongoing job training programs;
(3) $90,250 in each fiscal year to the Opportunities Industrialization Centers Kinston and Lenoir County, North Carolina, Inc.; and
(4) $90,250 in each fiscal year to the Opportunities Industrialization Center of Elizabeth City, Inc.
SECTION 12.12.(b) For each of the Opportunities Industrialization Centers receiving funds pursuant to subsection (a) of this section, the Rural Economic Development Center, Inc., shall:
(1) By January 15, 2004, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2002-2003 program activities, objectives, and accomplishments;
b. State fiscal year 2002-2003 itemized expenditures and fund sources;
c. State fiscal year 2003-2004 planned activities, objectives, and accomplishments, including actual results through December 31, 2003; and
d. State fiscal year 2003-2004 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2003.
(2) By January 15, 2005, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a. State fiscal year 2003-2004 program activities, objectives, and accomplishments;
b. State fiscal year 2003-2004 itemized expenditures and fund sources;
c. State fiscal year 2004-2005 planned activities, objectives, and accomplishments, including actual results through December 31, 2004; and
d. State fiscal year 2004-2005 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2004.
(3) Notwithstanding G.S. 143-6.1(d), file annually with the State Auditor a financial statement in the form and on the schedule prescribed by the State Auditor. The financial statements must be audited in accordance with standards prescribed by the State Auditor to assure that State funds are used for the purposes provided by law.
(4) Provide to the Fiscal Research Division a copy of the annual audited financial statement required in subdivision (3) of this subsection within 30 days of issuance of the statement.
SECTION 12.12.(c) No funds appropriated under this act shall be released to an Opportunities Industrialization Center (hereinafter Center) listed in subsection (a) of this section unless the Center can demonstrate that there are no outstanding or proposed assessments or other collection actions against the Center for any State or federal taxes, including related penalties, interest, and fees.
PART XIII. JUDICIAL DEPARTMENT
OPERATIONAL SAVINGS/FUNDING RESERVES
COLLECTION OF WORTHLESS CHECK FUNDS
SECTION 13.2. Notwithstanding the provisions of G.S. 7A-308(c), the Judicial Department may use any balance remaining in the Collection of Worthless Checks Fund on June 30, 2003, for the purchase or repair of office or information technology equipment during the 2003-2004 fiscal year. Prior to using any funds under this section, the Judicial Department shall report to the Joint Legislative Commission on Governmental Operations and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety on the equipment to be purchased or repaired and the reasons for the purchases.
OFFICE OF INDIGENT DEFENSE SERVICES REPORT
SECTION 13.3. The Office of Indigent Defense Services shall report to the Chairs of the Senate and House of Representatives Appropriations Committees and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety by March 1 of each year on:
(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, 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.
SECTION 13.4.(a) It is the intent of the General Assembly that, allowing for established local differences in implementation, State Drug Treatment Court funds not be used to fund case manager positions when the services provided by those positions can be reasonably provided by the Treatment Alternatives to Street Crime (TASC) program in the Department of Health and Human Services or by other existing resources. The Drug Treatment Court Program shall identify areas of potential cost savings in the local programs that would result from reducing the number of case manager positions. The Program shall also identify areas in which federal funding might absorb administrative costs.
The Drug Treatment Court Program shall report by February 1, 2004, to the Chairs of the Senate and House of Representatives Appropriations Committees and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety on the savings identified. The report shall include a transition plan for sustaining any local program that is currently receiving federal grant funding.
SECTION 13.4.(b) Prior to the establishment of any new local drug treatment court programs, the local drug treatment court management committee shall consult with the TASC program as to the availability of case management services in that community.
TRANSFER OF EQUIPMENT AND SUPPLY FUNDS
ADJUST MAGISTRATE AUTHORIZATIONS
SECTION 13.8. G.S. 7A-133(c) reads as rewritten:
"(c) Each county shall have the numbers of magistrates and additional seats of district court, as set forth in the following table:
Additional
Magistrates Seats of
County Min. - Max. Court
Camden 1 3
Chowan 2 3
Currituck 1 4
Dare 3 8
Gates 2 3
Pasquotank 3 5
Perquimans 2 4
Martin
54 8
Beaufort 4 8
Tyrrell 1 3
Hyde 2 4
Washington 3 4
Pitt 10 12 Farmville
Ayden
Craven 7 10 Havelock
Pamlico 2 4
Carteret 5 8
Sampson 6 8
Duplin
98 11
Jones 2 3
Onslow 8 14
New Hanover 6 11
Pender 4 6
Halifax 9 14 Roanoke
Rapids,
Scotland Neck
Northampton 5 7
Bertie 4 6
Hertford 5 7
Nash 7 10 Rocky Mount
Edgecombe 4 7 Rocky Mount
Wilson 4 7
Wayne 5 12 Mount Olive
Greene 2 4
Lenoir 4 10 La Grange
Granville 3 7
Vance 3 6
Warren 3 5
Franklin 3 7
Person 3 4
Caswell 2 5
Wake 12 21 Apex,
Wendell,
Fuquay-
Varina,
Wake Forest
Harnett 7 11 Dunn
Johnston 10 12 Benson,
Clayton,
Selma
Lee 4 6
Cumberland 10 19
Bladen 4 6
Brunswick 4 9
Columbus 6 10 Tabor City
Durham 8 13
Alamance 7 11 Burlington
Orange 4 11 Chapel Hill
Chatham 3 9 Siler City
Scotland 3 5
Hoke 4 5
Robeson 8 16 Fairmont,
Maxton,
Pembroke,
Red Springs,
Rowland,
St. Pauls
Rockingham 4 9 Reidsville,
Eden,
Madison
Stokes 2 5
Surry 5 9 Mt. Airy
Guilford 20 27 High Point
Cabarrus 5 9 Kannapolis
Montgomery 2 4
Randolph 5 10 Liberty
Rowan 5 10
Stanly 5 6
Union 4 7
Anson 4 6
Richmond 5 6 Hamlet
Moore 5 8 Southern
Pines
Forsyth 3 15 Kernersville
Alexander 2 4
Davidson 7 10 Thomasville
Davie 2 3
Iredell 4 9 Mooresville
Alleghany 1 2
Ashe 3 4
Wilkes 4 6
Yadkin 3 5
Avery 3 5
Madison 4 5
Mitchell 3 4
Watauga 4 6
Yancey 2 4
Burke 4 7
Caldwell 4 7
Catawba 6 10 Hickory
Mecklenburg 15 28
Gaston 11 22
Cleveland 5 8
Lincoln 4 7
Buncombe 6 15
Henderson 4 7
McDowell 3 6
Polk 3 4
Rutherford 6 8
Transylvania 2 4
Cherokee 3 4
Clay 1 2
Graham 2 3
Haywood 5 7 Canton
Jackson 3 5
Macon 3 4
Swain
2 34"
NORTH CAROLINA STATE BAR FUNDS
SECTION 13.10. Of the funds appropriated in the continuation budget as a grant-in-aid to the North Carolina State Bar for the 2003-2005 biennium, the North Carolina State Bar may in its discretion use up to the sum of five hundred ninety thousand dollars ($590,000) for the 2003-2004 fiscal year and up to the sum of five hundred ninety thousand dollars ($590,000) for the 2004-2005 fiscal year to contract with the Center for Death Penalty Litigation to provide training, consultation, brief banking, and other assistance to attorneys representing indigent capital defendants. The Office of Indigent Defense Services shall report by February 1, 2004, to the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety on the activities funded by the grant-in-aid authorized by this section.
CLARIFY PARTIAL PAYMENT OF APPOINTMENT FEE FOR CRIMINAL DEFENDANTS
SECTION 13.11. G.S. 7A-455.1 reads as rewritten:
"§ 7A-455.1. Appointment fee in criminal cases.
(a) Each person who
requests the appointment of counsel in a criminal case shall pay to the clerk
of court a nonrefundable appointment fee of fifty dollars ($50.00) at the time
of appointment. Partial payments shall be credited against the amount of the
fifty-dollar ($50.00) fee due. No fee shall be due if the court finds that
the person is not entitled to the appointment of counsel.
(b) The appointment fee
in this section is due regardless of the outcome of the proceedings. If paid before
the final determination of the action at the trial level, the amount of the fee
paid in full at the time of appointment, the fifty dollars ($50.00) paid
shall be credited against any amounts the court determines to be owed for the
value of legal services rendered to the defendant. If not paid before the
final determination of the action at the trial level, the unpaid amount of the
in full at the time of appointment, the fifty-dollar ($50.00) fee shall
be added to any amounts the court determines to be owed for the value of legal
services rendered to the defendant and shall be collected in the same manner as
attorneys' fees are collected for such representation. If the fee is not
paid in full at the time of appointment, and no attorneys' fees are found
due when the action is finally determined at the trial level, a judgment shall
be entered, docketed, and indexed pursuant to G.S. 1-233 in the amount of the
unpaid fee fifty dollars ($50.00) and shall constitute a lien as
prescribed by the general law of the State applicable to judgments.
(c) The attorney representing the defendant when the action is finally determined at the trial level shall advise the court whether the appointment fee required by this section has been paid.
(d) Inability, failure, or refusal to pay the appointment fee shall not be grounds for denying appointment of counsel, for withdrawal of counsel, or for contempt.
(e) The appointment fee required by this section shall be assessed only once for each affidavit of indigency submitted by a defendant or other determination of indigency by the court, regardless of the number of cases for which an attorney is appointed. An additional appointment fee shall not be assessed for any additional cases thereafter assigned to an attorney if any cases for which a defendant was previously assessed an appointment fee are still pending. Nor shall an additional appointment fee be assessed if the charges for which an attorney was appointed are dismissed and subsequently refiled or if the defendant is appointed an attorney on appeal on a matter for which the defendant was assessed an appointment fee at the trial level.
(f) Of each appointment fee collected under this section, the sum of forty-five dollars ($45.00) shall be credited to the Indigent Persons' Attorney Fee Fund and the sum of five dollars ($5.00) shall be credited to the Court Information Technology Fund under G.S. 7A-343.2. These fees shall not revert.
(g) The Office of Indigent Defense Services shall adopt rules and develop forms to govern implementation of this section."
PILOT PROJECT ON ASSIGNMENT OF CIVIL CASES
SECTION 13.12.(a) The Administrative Office of the Courts may conduct a pilot project in up to four judicial districts to assess a system for the assignment and processing of general civil cases filed in the General Court of Justice. No district may be selected without the concurrence of the senior resident superior court judge and the chief district court judge, and no more than one pilot project site may be established within a judicial division.
The project shall evaluate methods of assigning cases to individual judges or sessions of court in the district court division or the superior court division, considering the nature of the case, the amount in controversy, the complexity of the issues, the likelihood of settlement, the availability and suitability of alternative dispute resolution programs, and any other appropriate factors relevant to just resolution of the cases and efficient use of court resources. In pilot districts designated by the Administrative Office of the Courts under this section, general civil cases may be assigned or transferred to alternative dispute resolution programs used within the district court or superior court, notwithstanding the provisions of G.S. 7A-37.1, G.S. 7A-38.1, or Articles 20 and 21 of Chapter 7A of the General Statutes.
SECTION 13.12.(b) This section expires June 30, 2005.
DISPUTE RESOLUTION FEE CLARIFICATION
SECTION 13.13. G.S. 7A-38.7 reads as rewritten:
"§ 7A-38.7. Dispute resolution fee for cases resolved in mediation.
(a) In each criminal case filed in the General Court of Justice that is resolved through referral to a community mediation center, a dispute resolution fee shall be assessed in the sum of sixty dollars ($60.00) per mediation for the support of the General Court of Justice. Fees assessed under this section shall be paid to the clerk of superior court in the county where the case was filed and remitted by the clerk to the State Treasurer.
(b) Before providing the
district attorney with a dismissal form, the community mediation center shall
require proof that the defendant has paid the dispute resolution fee as
required by subsection (a) of this section. section and shall attach
the receipt to the dismissal form."
DIVIDE SUPERIOR COURT DISTRICT 19B
SECTION 13.14.(a) G.S. 7A-41(a) reads as rewritten:
"(a) The counties of the State are organized into judicial divisions and superior court districts, and each superior court district has the counties, and the number of regular resident superior court judges set forth in the following table, and for districts of less than a whole county, as set out in subsection (b) of this section:
Superior
Judicial Court No. of Resident
Division District Counties Judges
First 1 Camden, Chowan, Currituck, Dare,
Gates, Pasquotank, Perquimans 2
First 2 Beaufort, Hyde, Martin, Tyrrell,
Washington 1
First 3A Pitt 2
Second 3B Carteret, Craven, Pamlico 2
Second 4A Duplin, Jones, Sampson 1
Second 4B Onslow 1
Second 5A (part of New Hanover, part of Pender
see subsection (b)) 1
5B (part of New Hanover, part of Pender
see subsection (b)) 1
5C (part of New Hanover, see subsection (b)) 1
First 6A Halifax 1
First 6B Bertie, Hertford, Northampton 1
First 7A Nash 1
First 7B (part of Wilson, part of Edgecombe,
see subsection (b)) 1
First 7C (part of Wilson, part of Edgecombe,
see subsection (b)) 1
Second 8A Lenoir and Greene 1
Second 8B Wayne 1
Third 9 Franklin, Granville, Vance, Warren 2
Third 9A Person, Caswell 1
Third 10A (part of Wake, see subsection (b)) 2
Third 10B (part of Wake, see subsection (b)) 2
Third 10C (part of Wake, see subsection (b)) 1
Third 10D (part of Wake, see subsection (b)) 1
Fourth 11A Harnett, Lee 1
Fourth 11B Johnston 1
Fourth 12A (part of Cumberland, see subsection (b)) 1
Fourth 12B (part of Cumberland, see subsection (b)) 1
Fourth 12C (part of Cumberland, see subsection (b)) 2
Fourth 13 Bladen, Brunswick, Columbus 2
Third 14A (part of Durham, see subsection (b)) 1
Third 14B (part of Durham, see subsection (b)) 3
Third 15A Alamance 2
Third 15B Orange, Chatham 1
Fourth 16A Scotland, Hoke 1
Fourth 16B Robeson 2
Fifth 17A Rockingham 2
Fifth 17B Stokes, Surry 2
Fifth 18A (part of Guilford, see subsection (b)) 1
Fifth 18B (part of Guilford, see subsection (b)) 1
Fifth 18C (part of Guilford, see subsection (b)) 1
Fifth 18D (part of Guilford, see subsection (b)) 1
Fifth 18E (part of Guilford, see subsection (b)) 1
Sixth 19A Cabarrus 1
Fifth
19B1
(part of Montgomery, part of Moore,
part of Randolph see subsection (b))
1
19B2
(part of Montgomery, part of Moore,
part of Randolph see subsection (b))
1
19B Montgomery, Randolph 1
Sixth 19C Rowan 1
Fifth 19D Moore 1
Sixth 20A Anson, Richmond 1
Sixth 20B Stanly, Union 2
Fifth 21A (part of Forsyth, see subsection (b)) 1
Fifth 21B (part of Forsyth, see subsection (b)) 1
Fifth 21C (part of Forsyth, see subsection (b)) 1
Fifth 21D (part of Forsyth, see subsection (b)) 1
Sixth 22 Alexander, Davidson, Davie, Iredell 3
Fifth 23 Alleghany, Ashe, Wilkes, Yadkin 1
Eighth 24 Avery, Madison, Mitchell, Watauga,
Yancey 2
Seventh 25A Burke, Caldwell 2
Seventh 25B Catawba 2
Seventh 26A (part of Mecklenburg, see subsection (b)) 2
Seventh 26B (part of Mecklenburg, see subsection (b)) 3
Seventh 26C (part of Mecklenburg, see subsection (b)) 2
Seventh 27A Gaston 2
Seventh 27B Cleveland, Lincoln 2
Eighth 28 Buncombe 2
Eighth 29 Henderson, McDowell, Polk,
Rutherford, Transylvania 2
Eighth 30A Cherokee, Clay, Graham, Macon,
Swain 1
Eighth 30B Haywood, Jackson 1."
SECTION 13.14.(b) G.S.7A-41(b)(24) and G.S. 7A-41(b)(25) are repealed.
SECTION 13.14.(f) This section becomes effective December 1, 2003.
DISPUTE SETTLEMENT CENTERS STUDY/reporting of cases mediated
SECTION 13.15.(a) The Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee shall:
(1) Review the funding provided by the General Assembly to community mediation centers, also known as dispute settlement centers or dispute resolution centers.
(2) Study the use of that funding by the recipient centers.
(3) Determine whether the language of G.S. 7A-38.5 adequately and accurately states the General Assembly's priorities for dispute settlement centers and for the spending of the State funds received by those centers.
(4) Recommend whether the match requirements set forth in G.S. 7A-38.6 should be varied according to each dispute settlement center's ability to obtain funding from non-State sources.
(5) Study any other factors it deems relevant related to State funding of dispute settlement centers.
SECTION 13.15.(b) The Committee shall report its findings and recommendations by May 1, 2004, to the Chairs of the Senate and House of Representatives Appropriations Committees and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety.
SECTION 13.15.(c) G.S. 7A-38.6(a) reads as rewritten:
"(a) All community mediation centers currently receiving State funds shall report annually to the Mediation Network of North Carolina on the program's funding and activities, including:
(1) Types of dispute settlement services provided;
(2) Clients receiving each type of dispute settlement service;
(3) Number and type of
referrals received, cases actually mediated, mediated (identified by
docket number), cases resolved in mediation, and total clients served in
the cases mediated;
(4) Total program funding and funding sources;
(5) Itemization of the use of funds, including operating expenses and personnel;
(6) Itemization of the use of State funds appropriated to the center;
(7) Level of volunteer activity; and
(8) Identification of future service demands and budget requirements.
The Mediation Network of North Carolina shall compile and summarize the information provided pursuant to this subsection and shall provide the information to the Chairs of the House of Representatives and Senate Appropriations Committees and the Chairs of the House of Representatives and Senate Appropriations Subcommittees on Justice and Public Safety by February 1 of each year."
PART XIV. DEPARTMENT OF JUSTICE
USE OF SEIZED AND FORFEITED PROPERTY TRANSFERRED TO STATE LAW ENFORCEMENT AGENCIES BY THE FEDERAL GOVERNMENT
SECTION 14.1.(a) Assets transferred to the Departments of Justice, Correction, and Crime Control and Public Safety during the 2003-2005 biennium pursuant to applicable federal law shall be credited to the budgets of the respective departments and shall result in an increase of law enforcement resources for those departments. The Departments of Justice, Correction, and Crime Control and Public Safety shall report to the Joint Legislative Commission on Governmental Operations upon receipt of the assets and, before using the assets, shall report on the intended use of the assets and the departmental priorities on which the assets may be expended.
SECTION 14.1.(b) The General Assembly finds that the use of assets transferred pursuant to federal law for new personnel positions, new projects, acquisition of real property, repair of buildings where the repair includes structural change, and construction of or additions to buildings may result in additional expenses for the State in future fiscal periods. Therefore, the Department of Justice, the Department of Correction, and the Department of Crime Control and Public Safety are prohibited from using these assets for such purposes without the prior approval of the General Assembly.
SECTION 14.1.(c) Nothing in this section prohibits North Carolina law enforcement agencies from receiving funds from the United States Department of Justice, the United States Department of the Treasury, and the United States Department of Health and Human Services.
PRIVATE PROTECTIVE SERVICES AND ALARM SYSTEMS LICENSING BOARDS PAY FOR USE OF STATE FACILITIES AND SERVICES
CERTAIN LITIGATION EXPENSES TO BE PAID BY CLIENTS
REIMBURSEMENT FOR UNC BOARD OF GOVERNORS LEGAL REPRESENTATION
REPORT ON CRIMINAL RECORDS CHECKS CONDUCTED FOR CONCEALED HANDGUN PERMITS/STUDY FEE ADJUSTMENT FOR CRIMINAL RECORDS CHECKS
SECTION 14.5.(b) The Office of State Budget and Management, in consultation with the Department of Justice, shall study the feasibility of adjusting the fees charged for criminal records checks conducted by the Division of Criminal Information of the Department of Justice as a result of the increase in receipts from criminal records checks. The study shall include an assessment of the Division's operational, personnel, and overhead costs related to providing criminal records checks and how those costs have changed since the prior fiscal year. The Office of State Budget and Management shall report its findings and recommendations to the Chairs of the Senate and House of Representatives Appropriations Committees, the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety, and the Fiscal Research Division on or before March 1, 2004.
NC LEGAL EDUCATION ASSISTANCE FOUNDATION REPORT ON FUNDS DISBURSED
SECTION 14.6. The North Carolina Legal Education Assistance Foundation shall report by March 1, 2004, to the Chairs of the House of Representatives and Senate Appropriations Committees and the Chairs of the House of Representatives and Senate Justice and Public Safety Subcommittees on its internal controls and procedures for ensuring that all funds designated for payoff of education loans are used for that purpose. The Foundation shall report by March 1 of each year to the Joint Legislative Commission on Governmental Operations on the expenditure of State funds, the number of attorneys receiving funds, the average award amount, the average student loan amount, the number of attorneys on the waiting list, and the average number of years for which attorneys receive loan assistance.
SECTION 14.8. On or after July 1, 2004, the Department of Justice may transfer the seven State Bureau of Investigation agents funded in the 2003-2004 fiscal year with federal funds from Computer Crimes grants to agent positions in the State Bureau of Investigation that are (i) vacant, (ii) funded through the General Fund, and (iii) in existence on July 1, 2003.
RAPE KIT ANALYSES BY PRIVATE VENDORS
SECTION 14.9. The Department of Justice shall issue a Request for Information to determine (i) the interest of private vendors in providing analyses of forensic samples of DNA from rape kits in which there is no suspect, (ii) the qualifications of any private vendors who demonstrate such an interest, and (iii) the estimated costs of contracting with private vendors to provide analyses of forensic DNA samples.
PART XV. DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION
S.O.S. ADMINISTRATIVE COST LIMITS
JUVENILE CRIME PREVENTION COUNCIL GRANT REPORTING AND CERTIFICATION
SECTION 15.2.(b) Each county in which local programs receive Juvenile Crime Prevention Council grant funds from the Department of Juvenile Justice and Delinquency Prevention shall certify annually through its local council to the Department that funds received are not used to duplicate or supplant other programs within the county.
SECTION 15.3.(b) The Department of Juvenile Justice and Delinquency Prevention shall report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety on the effectiveness of the Juvenile Assessment Center by April 1 each year. The report on the Juvenile Assessment Center shall include information on the number of juveniles served and an evaluation of the effectiveness of juvenile assessment plans and services provided as a result of these plans.