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
INTRODUCTION
SECTION 1.1. The appropriations made in this act
are for maximum amounts necessary to provide the services and
accomplish the purposes described in the budget. Savings shall
be effected where the total amounts appropriated are not
required to perform these services and accomplish these purposes
and, except as allowed by the Executive Budget Act, or this act,
the savings shall revert to the appropriate fund at the end of
each fiscal year.
TITLE OF ACT
SECTION 1.2. This act shall be known as the
"Current Operations and Capital Improvements Appropriations Act
of 2003."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
SECTION 2.1. Appropriations from the General Fund
of the State for the maintenance of the State departments,
institutions, and agencies, and for other purposes as
enumerated, are made for the biennium ending June 30, 2005,
according to the following schedule:
Current Operations - General Fund2003-2004 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 Governors1,792,141,661
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 Rehabilitation40,042,124 40,834,858
Total 3,379,819,647
3,859,517,744
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services48,495,356
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 Safety28,744,326 2
8,139,010
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 Appropriations3,380,000 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' Compensation4,500,000
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
SECTION 2.2.(a) The General Fund availability used
in developing the 2003-2005 biennial budget is shown below:
FY 2003-2004FY 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 Balance244,159,298 0
Revenues Based on Existing Tax Structure13,028,600,000
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 Returns3,100,000 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 Funds108,796,845 0
Adjust Transfer from Insurance Regulatory Fund2,942,777
(207,827)
Tax Reductions for Federal Conformity(70,000,000) 0
Subtotal Adjustments to Availability: 2003 Session877,472,072
831,487,607
Revised General Fund Availability14,938,506,380 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.(b) Notwithstanding G.S.
143-16.4(a2), of the funds credited to the Tobacco 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 forty million dollars ($40,000,000) shall be transferred
from the Department of Agriculture and Consumer Services, Budget
Code 23703 (Tobacco 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.(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.(d) On July 1, 2003, the State
Controller shall transfer one hundred eight million seven
hundred ninety-six thousand eight hundred forty-five dollars
($108,796,845) from the Disaster Reserve Fund, Budget Code
13017, to Nontax Budget Code 19978 (Intra State Transfers) to
support General Fund appropriations for the 2003-2004 fiscal
year.
SECTION 2.2.(e) Notwithstanding G.S. 143-15.2
and G.S. 143-15.3, the State Controller shall transfer only one
hundred fifty million dollars ($150,000,000) from the unreserved
credit balance to the Savings Reserve Account on June 30, 2003.
This is not an "appropriation made by law", as that phrase is
used in Article V, Section 7(1) of the North Carolina
Constitution. This subsection becomes effective June 30, 2003.
SECTION 2.2.(f) Notwithstanding G.S. 143-15.2
and G.S. 143-15.3A, the State Controller shall transfer fifteen
million dollars ($15,000,000) from the unreserved credit balance
to the Repairs and Renovations Reserve Account on June 30, 2003.
This subsection becomes effective June 30, 2003.
SECTION 2.2.(g) Notwithstanding G.S.
147-86.30(c), the Health and Wellness Trust Fund Commission may
expend the balance of funds remaining from funds transferred
from the Fund Reserve to Health and Wellness Trust Fund
nonreserved funds pursuant to Section 2.2(h) of S.L. 2002-126.
These funds shall be expended in accordance with G.S.
147-86.30(d) during the 2003-2005 fiscal biennium.
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.
SECTION 2.2.(i) Notwithstanding any other
provision of law, the sum of ten million dollars ($10,000,000)
received by the State of North Carolina as the State's share of
the Conflicts of Interest Global Settlement shall be deposited
in the General Fund. The revenue shall be used for educational
purposes.
SECTION 2.2.(j) When the Highway Trust Fund was
created in 1989, the revenue from the sales tax on motor
vehicles was transferred from the General Fund to the Highway
Trust Fund. To offset this loss of revenue from the General
Fund, the Highway Trust Fund was required to transfer one
hundred seventy million dollars ($170,000,000) to the General
Fund each year, an amount equal to the revenue in 1989 from the
sales tax on motor vehicles. This transfer did not, however,
make the General Fund whole after the transfer of the sales tax
revenue because no provision has been made to adjust the amount
for the increased volume of transactions and increased vehicle
prices. The additional funds transferred from the Highway Trust
Fund to the General Fund by this act is an effort to recover a
portion of the sales tax revenues that would have gone to the
General Fund over the last 14 years.
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
SECTION 3.1. Appropriations from the State Highway
Fund for the maintenance and operation of the Department of
Transportation, and for other purposes as enumerated, are made
for the biennium ending June 30, 2005, according to the
following schedule:
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 89,600,00090,590,000
Urban 28,000,00014,000,000
Public Access 2,000,0002,000,000
Spot Safety 9,100,0009,100,000
Contingency 15,000,00010,000,000
Federal Aid Match 4,160,0004,280,000
Maintenance 582,507,482573,436,154
Asphalt Plant/OSHA 425,000425,000
Capital - -
Ferry Operations 19,677,28319,677,283
Aid to Municipalities 89,600,00090,590,000
Rail 15,090,91915,531,153
Public Transit 79,705,26680,302,926
(4) Governor's Highway Safety (84240) 292,449293,118
(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
SECTION 3.2. The Highway Fund availability used in
developing the 2003-2005 biennial budget is shown below:
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
SECTION 4.1. Appropriations from the State Highway
Trust Fund for the maintenance and operation of the Department
of Transportation, and for other purposes as enumerated, are
made for the biennium ending June 30, 2005, according to the
following schedule:
Current Operations - Highway Trust Fund2003-2004 2004-2005
Intrastate System $422,754,783$452,665,225
Urban Loops 170,944,428183,038,965
Aid to Municipalities 44,356,83847,495,141
Total for Secondary Roads 79,559,26683,648,141
Program Administration 40,001,56039,636,698
Transfer to General Fund 252,422,125242,586,830
GRAND TOTAL CURRENT OPERATIONS
AND EXPANSION $ 1,010,039,000 $ 1,0
49,071,000
PART V. BLOCK GRANTS
DHHS BLOCK GRANTS
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 Services3,234,601
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 Program1,966,153
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 Recipients26,621,241
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 Carolina127,500
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.
SECTION 5.1.(v) 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 on the activities and
expenditures of the North Carolina Inter-Agency Council for
Coordinating Homeless Programs no later than April 1, 2004.
NER BLOCK GRANT FUNDS
SECTION 5.2.(a) Appropriations from federal block
grant funds are made for the fiscal year ending June 30, 2004,
according to the following schedule:
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
SECTION 5.2.(b) Decreases in Federal Fund
Availability. - If federal funds are reduced below the amounts
specified above after the effective date of this act, then every
program in each of these federal block grants shall be reduced
by the same percentage as the reduction in federal funds.
SECTION 5.2.(c) Increases in Federal Fund
Availability for Community Development Block Grant. - Any block
grant funds appropriated by the Congress of the United States in
addition to the funds specified in this section shall be
expended as follows: Each program category under the Community
Development Block Grant shall be increased by the same
percentage as the increase in federal funds.
SECTION 5.2.(d) Limitations on Community
Development Block Grant Funds. - Of the funds appropriated in
this section for the Community Development Block Grant, the
following shall be allocated in each category for each program
year: up to one million dollars ($1,000,000) may be used for
State administration; not less than fifty thousand dollars
($50,000) may be used for Urgent Needs and Contingency; up to
thirteen million two hundred thousand dollars ($13,200,000) may
be used for Scattered Site Housing; up to ten million nine
hundred sixty thousand dollars ($10,960,000) may be used for
Economic Development, including Urban Redevelopment grants; not
less than twelve million two hundred thousand dollars
($12,200,000) shall be used for Community Revitalization; up to
four hundred fifty thousand dollars ($450,000) may be used for
State Technical Assistance; up to two million dollars
($2,000,000) may be used for Housing Development; up to five
million one hundred forty thousand dollars ($5,140,000) may be
used for Infrastructure. If federal block grant funds are
reduced or increased by the Congress of the United States after
the effective date of this act, then these reductions or
increases shall be allocated in accordance with subsection (b)
or (c) of this section, as applicable.
SECTION 5.2.(e) Increase Capacity for Nonprofit
Organizations. - Assistance to nonprofit organizations to
increase their capacity to carry out CDBG-eligible activities in
partnership with units of local government is an eligible
activity under any program category in accordance with federal
regulations. Capacity building grants may be made from funds
available within program categories, program income, or
unobligated funds.
SECTION 5.2.(f) Up to four million dollars
($4,000,000) of funds for Economic Development may be used for
Urgent Needs and Contingency for drought recovery.
SECTION 5.2.(g) Department of Commerce
Demonstration Grants in Partnership with Rural Economic
Development Center, Inc. - The Department of Commerce, in
partnership with the Rural Economic Development Center, Inc.,
shall award up to two million two hundred fifty thousand dollars
($2,250,000) in demonstration grants to local governments in
very distressed rural areas of the State. These grants shall be
used to address critical infrastructure and entrepreneurial
needs and to provide small business assistance.
SECTION 5.2.(h) The Department of Commerce
shall, in consultation with local government officials and the
University of North Carolina School of Government, design a
regional distribution system for making grants in the Community
Revitalization category in program year 2005. The system shall
take into account the relative lower income, poverty, and
housing conditions in every region, target the most critical
needs, and ensure that local governments in every region have
equal and fair access to these funds.
PART VI. GENERAL PROVISIONS
SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS, AND
AUTHORIZATION FOR EXPENDITURES
SECTION 6.1. There is appropriated out of the cash
balances, federal receipts, and departmental receipts available
to each department, sufficient amounts to carry on authorized
activities included under each department's operations. All
these cash balances, federal receipts, and departmental receipts
shall be expended and reported in accordance with provisions of
the Executive Budget Act, except as otherwise provided by
statute, and shall be expended at the level of service
authorized by the General Assembly. 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 or Highway Fund Codes, then 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 finds that the appropriations from the Fund are necessary
to maintain the function that generated the receipts at the
level anticipated in the certified Budget Codes for that Fund.
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 6.2A.(b) Where the review and evaluation
reveals problems or other failures, the Office of State Budget
and Management shall report its findings and recommendations to
the Chairs of the Appropriations Committees of the Senate and
House of Representatives as soon as practicable. In particular,
the Office of State Budget and Management shall transmit to the
General Assembly a list of special funds properly classified
together with their estimated beginning balances, estimated
receipts and expenditures, and estimated ending balances, and a
list of funds currently classified as special funds for which
the receipts are more appropriately reflected as offsets to
total requirements in General Fund budget codes. The list of
special funds properly classified should include funds currently
classified as trust funds that are more appropriately classified
as special funds.
BUDGET CODE ADJUSTMENTS
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
SECTION 6.4.(a) Funds in the amount of five million
dollars ($5,000,000) for the 2003-2004 fiscal year and five
million dollars ($5,000,000) for the 2004-2005 fiscal year are
appropriated in this act to the Contingency and Emergency Fund.
Of these funds:
(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."
HIPAA RESERVE
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.
HIPAA IMPLEMENTATION
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
SECTION 6.8.(a) Definition. - For purposes of this
section, the term "State-owned surplus real property" means
State-owned land and buildings that are unused or underused.
SECTION 6.8.(b) Establish State-Owned Surplus
Real Property Disposal System; Purpose; Use of Proceeds. - The
Department of Administration, in consultation with the Office of
State Budget and Management, the Department of Transportation,
The University of North Carolina, and all other affected State
departments, agencies, and institutions, shall develop and
implement a State-owned surplus real property disposal system.
The purpose of the system is to establish a uniform real
property disposal system that will continuously identify
State-owned surplus real property, evaluate that property, and
dispose of that property as appropriate. Unless otherwise
provided by law, the clear proceeds of the sale of State-owned
surplus real property shall be credited to the General Fund. It
is the intent of the General Assembly that these proceeds shall
partially offset debt service costs occasioned by the use of
Certificates of Participation to finance the repair and
renovation of State buildings.
SECTION 6.8.(c) Duties; Criteria. - In
compliance with this section, the Department of Administration,
in consultation with all other affected State departments,
agencies, and institutions, shall do all of the following:
(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.
SECTION 6.8.(d) Establish Real Property
Management Advisory Council. - There is established the Real
Property Management Advisory Council in the Department of
Administration. The Advisory Council shall examine the use of
State-owned real property and shall advise the Secretary of
Administration as to the identification of those properties that
are unneeded or underutilized. Members of the Advisory Council
must be knowledgeable in one of the following areas: real
estate/appraisal, engineering, investment properties, or
finance. The Advisory Council shall consist of 12 members
appointed as follows:
(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.
SECTION 6.8.(g) Reporting Requirement. - The
Department of Administration shall make an interim report to the
Joint Legislative Commission on Governmental Operations no later
than December 1, 2003, regarding the extraordinary measures
being taken to comply with this section and shall make a final
report no later than March 1, 2004, regarding its findings and
recommendations and the progress in implementing 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
SECTION 6.15.(a) Article 3 of Chapter 143 of the
General Statutes is amended by adding the following new section
to read:
"§ 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."
SECTION 6.15.(b) This section is effective when
it becomes law and applies to contracts bid on or after that
date.
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."
TRANSFERS BETWEEN LINE ITEMS
SECTION 6.22. For fiscal year 2003-2004 only, State
departments and agencies may transfer General Fund
appropriations between personal service and nonpersonal service
line items provided that it has been approved by the department
or agency head and has received prior approval from the Office
of State Budget and Management. Personal service funds may be
transferred and used for nonpersonal service items in certain
instances. Specifically, personal service funds may only be
used to pay for costs related to continuing operations and shall
not be used to expand existing programs or to establish new
programs.
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
SECTION 6.23.(a) The Office of State Budget and
Management may transfer up to twenty percent (20%) of the
balance of any special fund other than the Clean Water
Management Trust Fund, the Natural Heritage Trust Fund, or the
Parks and Recreation Trust Fund, to the 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.
SECTION 6.23.(b) Nothing in this section shall
be construed to modify the authority of the Governor to act
under Article III, Section 5(3) of the North Carolina
Constitution to effect necessary economies in State expenditures
required for balancing the budget due to a revenue shortfall.
PART VII. PUBLIC SCHOOLS
TEACHER SALARY SCHEDULES
SECTION 7.1.(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 teacher salary schedule set out in subsection
(b) of this section, including funds for the employer's
retirement and social security contributions and funds for
annual longevity payments at one and one-half percent (1.5%) of
base salary for 10 to 14 years of State service, two and
twenty-five hundredths percent (2.25%) of base salary for 15 to
19 years of State service, three and twenty-five hundredths
percent (3.25%) of base salary for 20 to 24 years of State
service, and four and one-half percent (4.5%) of base salary for
25 or more years of State service, commencing July 1, 2003, for
all teachers whose salaries are supported from the State's
General Fund. These funds shall be allocated to individuals
according to rules adopted by the State Board of Education. The
longevity payment shall be paid in a lump sum once a year.
SECTION 7.1.(b) For the 2003-2004 school year,
the following monthly salary schedules shall apply to certified
personnel of the public schools who are classified as teachers.
The schedule contains 30 steps with each step corresponding to
one year of teaching experience.
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
SECTION 7.1.(c) Certified public school teachers
with certification based on academic preparation at the six-year
degree level shall receive a salary supplement of one hundred
twenty-six dollars ($126.00) per month in addition to the
compensation provided for certified personnel of the public
schools who are classified as "M" teachers. Certified public
school teachers with certification based on academic preparation
at the doctoral degree level shall receive a salary supplement
of two hundred fifty-three dollars ($253.00) per month in
addition to the compensation provided for certified personnel of
the public schools who are classified as "M" teachers.
SECTION 7.1.(d) Effective for the 2003-2004
school year, the first step of the salary schedule for school
psychologists shall be equivalent to Step 5, corresponding to
five years of experience, on the salary schedule established in
this section for certified personnel of the public schools who
are classified as "M" teachers. Certified psychologists shall
be placed on the salary schedule at an appropriate step based on
their years of experience. Certified psychologists shall
receive longevity payments based on years of State service in
the same manner as teachers.
Certified psychologists with certification based on
academic preparation at the six-year degree level shall receive
a salary supplement of one hundred twenty-six dollars ($126.00)
per month in addition to the compensation provided for certified
psychologists. Certified psychologists with certification based
on academic preparation at the doctoral degree level shall
receive a salary supplement of two hundred fifty-three dollars
($253.00) per month in addition to the compensation provided for
certified psychologists.
SECTION 7.1.(e) Effective for the 2003-2004
school year, speech pathologists who are certified as speech
pathologists at the masters degree level and audiologists who
are certified as audiologists at the masters degree level and
who are employed in the public schools as speech and language
specialists and audiologists shall be paid on the school
psychologist salary schedule.
Speech pathologists and audiologists with certification
based on academic preparation at the six-year degree level shall
receive a salary supplement of one hundred twenty-six dollars
($126.00) per month in addition to the compensation provided for
speech pathologists and audiologists. Speech pathologists and
audiologists with certification based on academic preparation at
the doctoral degree level shall receive a salary supplement of
two hundred fifty-three dollars ($253.00) per month in addition
to the compensation provided for speech pathologists and
audiologists.
SECTION 7.1.(f) Certified school nurses who are
employed in the public schools as nurses shall be paid on the
"M" salary schedule.
SECTION 7.1.(g) As used in this section, the
term "teacher" shall also include instructional support
personnel.
SCHOOL-BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 7.2.(a) Effective for the 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.
SECTION 7.2.(h)
(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.
CENTRAL OFFICE SALARIES
SECTION 7.3.(a) The monthly salary ranges that
follow apply to assistant superintendents, associate
superintendents, directors/coordinators, supervisors, and
finance officers for the 2003-2004 fiscal year, beginning July
1, 2003. All employees so classified who are employed on
October 1, 2003 shall receive a one-time, lump sum compensation
bonus, payable at the end of the employee's first pay period
after October 1, 2003, of five hundred and fifty dollars
($550.00).
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.
SECTION 7.3.(b) The monthly salary ranges that
follow apply to public school superintendents for the 2003-2004
fiscal year, beginning July 1, 2003. All employees so classified
who are employed on October 1, 2003, shall receive a one-time,
lump sum compensation bonus, payable at the end of the
employee's first pay period after October 1, 2003, of five
hundred and fifty dollars ($550.00).
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.
SECTION 7.3.(c) Longevity pay for
superintendents, assistant superintendents, associate
superintendents, directors/coordinators, supervisors, and
finance officers shall be as provided for State employees under
the State Personnel Act.
SECTION 7.3.(d) Superintendents, assistant
superintendents, associate superintendents,
directors/coordinators, supervisors, and finance officers with
certification based on academic preparation at the six-year
degree level shall receive a salary supplement of one hundred
twenty-six dollars ($126.00) per month in addition to the
compensation provided pursuant to this section.
Superintendents, assistant superintendents, associate
superintendents, directors/coordinators, supervisors, and
finance officers with certification based on academic
preparation at the doctoral degree level shall receive a salary
supplement of two hundred fifty-three dollars ($253.00) per
month in addition to the compensation provided for under this
section.
SECTION 7.3.(e) The State Board of Education
shall not permit local school administrative units to transfer
State funds from other funding categories for salaries for
public school central office administrators.
SECTION 7.3.(f) The Director of the Budget shall
transfer from the Reserve for Compensation Increases created in
this act for fiscal year 2003-2004, beginning July 1, 2003,
funds necessary to provide a one-time, lump sum compensation
bonus, payable at the end of the employee's first pay period
after October 1, 2003, of five hundred fifty dollars ($550.00)
for all permanent full-time personnel paid from the Central
Office Allotment. The State Board of Education shall allocate
these funds to local school administrative units. The local
boards of education shall establish guidelines for providing
their salary increases to these personnel.
NONCERTIFIED PERSONNEL
SECTION 7.4.(a) The Director of the Budget shall
transfer from the Reserve for Compensation Increases created in
this act for fiscal year 2003-2004, commencing July 1, 2003,
funds necessary to provide a one-time, lump sum compensation
bonus, payable at the end of the employee's first pay period
after October 1, 2003, of five hundred fifty dollars ($550.00),
for all noncertified public school employees whose salaries are
supported from the State's General Fund and who are employed by
the public schools on October 1, 2003.
SECTION 7.4.(b) Local boards of education shall
provide a one-time, lump sum compensation bonus, payable at the
end of the employee's first pay period after October 1, 2003, of
five hundred fifty dollars ($550.00) for all such employees who
were employed on October 1, 2003. For part-time employees, the
pay increase shall be pro rata based on the number of hours
worked.
SECTION 7.4.(c) These funds shall not be used
for any purpose other than for the one-time, lump sum
compensation bonuses and necessary employer contributions
provided by this section.
RESERVE FOR EXPERIENCE STEP INCREASE FOR TEACHERS AND
PRINCIPALS IN PUBLIC SCHOOLS
SECTION 7.5.(a) Funds in the Reserve for Experience
Step Increase for Teachers and Principals in Public Schools
shall be used for experience step increases for employees of
schools operated by a local board of education, the Department
of Health and Human Services, the Department of Correction, or
the Department of Juvenile Justice and Delinquency Prevention
who are paid on the teacher salary schedule or the principal and
assistant principal salary schedule.
SECTION 7.5.(b) Effective July 1, 2003, any
permanent certified personnel employed on July 1, 2003, and paid
on the teacher salary schedule with 29+ years of experience
shall receive a one-time bonus equivalent to the average
increase of the 26 to 29 year steps. Effective July 1, 2003,
any permanent personnel employed on July 1, 2003, and paid at
the top of the principal and assistant principal salary schedule
shall receive a one-time bonus equivalent to two percent (2%).
For permanent part-time personnel, the one-time bonus shall be
adjusted pro rata. Personnel defined under G.S. 115C-325(a)(5a)
are not eligible to receive the bonus.
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
SECTION 7.8. Of funds appropriated from the General
Fund to State Aid to Local School Administrative Units, the sum
of one million nine hundred fifty-six thousand one hundred
fifteen dollars ($1,956,115) for the 2003-2004 and 2004-2005
fiscal years shall be used to provide the State's chronically
low-performing schools with tools needed to dramatically improve
student achievement. These funds shall be used to implement any
of the following strategies at the schools that have not
previously been implemented with State or other funds:
(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
SECTION 7.9. Of funds appropriated from the General
Fund to State Aid to Local School Administrative Units, the sum
of ten million one hundred thirty-four thousand six hundred
seven dollars ($10,134,607) for the 2003-2004 and 2004-2005
fiscal years shall be budgeted to provide the State's lowest
performing elementary schools with the tools needed to
dramatically improve student achievement. These funds shall be
used for the 37 elementary schools at which, for the 1999-2000
school year, over eighty percent (80%) of the students qualified
for free or reduced-price lunches and no more than fifty-five
percent (55%) of the students performed at or above grade level.
Of these funds:
(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
SECTION 7.10.(a) In order for the high-priority
schools identified in Section 7.9 of this act to remain eligible
for the additional resources provided in this section, the
schools must meet the expected growth for each year and must
achieve high growth for at least two out of three years based on
the State Board of Education's annual performance standards set
for each school. No adjustment in the allotment of resources
based on performance shall be made until the 2004-2005 school
year.
SECTION 7.10.(b) All teaching positions allotted
for students in high-priority schools and continually
low-performing schools in those grades targeted for smaller
class sizes shall be assigned to and teach in those grades and
in those schools. The maximum class size in grades K-3 in
high-priority schools and in grades K-5 in continually
low-performing schools shall be no more than one student above
the allotment ratio in that grade. The Department of Public
Instruction shall monitor class sizes at these schools at the
end of the first month of school and report to the State Board
of Education on the actual class sizes at these schools. If the
local school administrative unit notifies the State Board of
Education that they do not have sufficient resources to adhere
to the class size maximum requirements and requests additional
teaching positions, the State Board shall verify the need for
additional positions. If the additional resources are
determined necessary, the State Board of Education may allocate
additional teaching positions to the unit from the Reserve for
Average Daily Membership adjustments.
SECTION 7.10.(c) Of funds appropriated from the
General Fund to State Aid to Local School Administrative Units,
the sum of five hundred thousand dollars ($500,000) for fiscal
year 2003-2004 and the sum of five hundred thousand dollars
($500,000) for fiscal year 2004-2005 shall be used by the State
Board of Education to contract with an outside organization to
evaluate the initiatives set forth in this section. The
evaluation shall include:
(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
SECTION 7.11. The State Board of Education may use
up to two hundred thousand dollars ($200,000) of the funds in
the Alternative Schools/At-Risk Student allotment each year for
the 2003-2004 fiscal year and for the 2004-2005 fiscal year to
implement G.S. 115C-12(24).
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.
CHILDREN WITH DISABILITIES
SECTION 7.13. The State Board of Education shall
allocate funds for children with disabilities on the basis of
two thousand six hundred seventy dollars and twenty-eight cents
($2,670.28) per child for a maximum of 164,167 children for the
2003-2004 school year. Each local school administrative unit
shall receive funds for the lesser of (i) all children who are
identified as children with disabilities or (ii) twelve and
five-tenths percent (12.5%) of the 2003-2004 allocated average
daily membership in the local school administrative unit.
The dollar amounts allocated under this section for
children with disabilities shall also adjust in accordance with
legislative salary increments, retirement rate adjustments, and
health benefit adjustments for personnel who serve children with
disabilities.
FUNDS FOR ACADEMICALLY GIFTED CHILDREN
SECTION 7.14. The State Board of Education shall
allocate funds for academically or intellectually gifted
children on the basis of eight hundred eighty-four dollars and
fifty-five cents ($884.55) per child. A local school
administrative unit shall receive funds for a maximum of four
percent (4%) of its 2003-2004 allocated average daily
membership, regardless of the number of children identified as
academically or intellectually gifted in the unit. The State
Board shall allocate funds for no more than 53,712
children for the 2003-2004 school year.
The dollar amounts allocated under this section for
academically or intellectually gifted children shall also adjust
in accordance with legislative salary increments, retirement
rate adjustments, and health benefit adjustments for personnel
who serve academically or intellectually gifted children.
STUDENTS WITH LIMITED ENGLISH PROFICIENCY
SECTION 7.15.(a) The State Board of Education shall
develop guidelines for identifying and providing services to
students with limited proficiency in the English language.
The State Board shall allocate these funds to local
school administrative units and to charter schools under a
formula that takes into account the average percentage of
students in the units or the charters over the past three years
who have limited English proficiency. The State Board shall
allocate funds to a unit or a charter school only if (i) average
daily membership of the unit or the charter school includes at
least 20 students with limited English proficiency or (ii)
students with limited English proficiency comprise at least two
and one-half percent (2.5%) of the average daily membership of
the unit or charter school. For the portion of the funds that is
allocated on the basis of the number of identified students, the
maximum number of identified students for whom a unit or charter
school receives funds shall not exceed ten and six-tenths
percent (10.6%) of its average daily membership.
Local school administrative units shall use funds
allocated to them to pay for classroom teachers, teacher
assistants, tutors, textbooks, classroom materials/instructional
supplies/equipment, transportation costs, and staff development
of teachers for students with limited English proficiency.
A county in which a local school administrative unit
receives funds under this section shall use the funds to
supplement local current expense funds and shall not supplant
local current expense funds.
SECTION 7.15.(b) The Department of Public
Instruction shall prepare a current head count of the number of
students classified with limited English proficiency by December
1 of each year.
Students in the head count shall be assessed at least
once every three years to determine their level of English
proficiency. A student who scores "superior" on the standard
English language proficiency assessment instrument used in this
State shall not be included in the head count of students with
limited English proficiency.
SECTION 7.15.(c) The State Board of Education
shall review the allotment formula for funding for students with
limited English proficiency. In its review, the Board shall
consider whether the proportion of funds allotted on the basis
of concentration of students with limited English proficiency in
a local school administrative unit is at the proper level or
should be revised. The Board shall report the results of its
review and its recommendations to the Joint Legislative
Education Oversight Committee by November 15, 2003.
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
SECTION 7.16.(a) The State Board of Education shall
use funds appropriated for State Aid to Local School
Administrative Units for the 2003-2004 fiscal year to provide
incentive funding for schools that met or exceeded the projected
levels of improvement in student performance during the
2002-2003 school year, in accordance with the ABCs of Public
Education Program. In accordance with State Board of Education
policy:
(1) Incentive awards in schools that achieve higher
than expected improvements may be up to:
a. One thousand five hundred dollars ($1,500) for
each teacher and for certified personnel; and
b. Five hundred dollars ($500.00) for each
teacher assistant.
(2) Incentive awards in schools that meet the expected
improvements may be up to:
a. Seven hundred fifty dollars ($750.00) for each
teacher and for certified personnel; and
b. Three hundred seventy-five dollars ($375.00)
for each teacher assistant.
SECTION 7.16.(b) The State Board of Education
may use funds appropriated to State Aid to Local School
Administrative Units for assistance teams to low-performing
schools.
SECTION 7.16.(c) The pilot program established
by the State Board of Education under Section 8.36 of S.L.
1999-237 is terminated as of June 30, 2002. The State Board of
Education shall report its findings and recommendations based on
results of the pilot program as of June 30, 2002, to the Joint
Legislative Education Oversight Committee by October 15,
2003.
SECTION 7.16.(d) It is the intent of the General
Assembly, in future fiscal years, to address efforts in schools
to close the achievement gap by providing an incentive for
schools that make adequate yearly progress as required by the No
Child Left Behind Act of 2001.
SECTION 7.16.(e) Subsection (c) of this section
becomes effective June 30, 2003.
LEA ASSISTANCE PROGRAM
SECTION 7.17. Of funds appropriated from the
General Fund to State Aid to Local School Administrative Units,
the sum of five hundred thousand dollars ($500,000) for fiscal
year 2003-2004 shall be used to provide assistance to the
State's low-performing Local School Administrative Units (LEAs)
and to assist schools in meeting adequate yearly progress in
each subgroup identified in the No Child Left Behind Act of
2001. The State Board of Education shall report to the Office of
State Budget and Management, the Fiscal Research Division, and
the Joint Legislative Education Oversight Committee on the
expenditure of these funds by May 15, 2004, and by December 15,
2005. The report shall contain: (i) the criteria for selecting
LEAs and schools to receive assistance, (ii) measurable goals
and objectives for the assistance program, (iii) an explanation
of the assistance provided, (iv) findings from the assistance
program, (v) actual expenditures by category, (vi)
recommendations for the continuance of this program, and (vii)
any other information the State Board deems necessary.
EXPENDITURE OF FUNDS TO IMPROVE STUDENT ACCOUNTABILITY
SECTION 7.18.(a) Funds appropriated for the
2003-2004 and 2004-2005 fiscal years for Student Accountability
Standards shall be used to assist students to perform at or
above grade level in reading and mathematics in grades 3-8 as
measured by the State's end-of-grade tests. The State Board of
Education shall allocate these funds to LEAs based on the number
of students who score at Level I or Level II on either reading
or mathematics end-of-grade tests in grades 3-8. Funds in the
allocation category shall be used to improve the academic
performance of (i) students who are performing at Level I or II
on either reading or mathematics end-of-grade tests in grades
3-8 or (ii) students who are performing at Level I or II on the
writing tests in grades 4 and 7. These funds may also be used to
improve the academic performance of students who are performing
at Level I or II on the high school end-of-course tests. These
funds shall not be transferred to other allocation categories or
otherwise used for other purposes. Except as otherwise provided
by law, local boards of education may transfer other funds
available to them into this allocation category.
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.
SECTION 7.18.(b) Funds appropriated for Student
Accountability Standards shall not revert at the end of each
fiscal year but shall remain available for expenditure until
August 31 of the subsequent fiscal year.
FUNDS FOR TEACHER RECRUITMENT INITIATIVES
SECTION 7.19. The State Board of Education may use
up to two hundred thousand dollars ($200,000) of the funds
appropriated for State Aid to Local School Administrative Units
each year for the 2003-2004 fiscal year and for the 2004-2005
fiscal year to enable teachers who have received NBPTS
certification or who have otherwise received special recognition
to advise the State Board of Education on teacher recruitment
and other strategic priorities of the State Board.
RECRUITMENT AND RETENTION INITIATIVES TO ADDRESS TEACHER
SHORTAGES
SECTION 7.20.(a) Of the funds appropriated from the
General Fund to State Aid to Local School Administrative Units,
the sum of two million eight hundred ninety thousand dollars
($2,890,000) for the 2003-2004 and 2004-2005 fiscal years shall
be used to provide annual bonuses of one thousand eight hundred
dollars ($1,800) to teachers certified in and teaching in the
fields of mathematics, science, or special education in grades 6
through 12 at middle and high schools with eighty percent (80%)
or more of the students eligible for free or reduced lunch or
with fifty percent (50%) or more of students performing below
grade level in Algebra I and Biology. The bonus shall be paid
monthly with matching benefits. Teachers shall remain eligible
for the bonuses so long as they continue to teach in one of
these disciplines at a school that was eligible for the bonus
program when the teacher first received this bonus.
SECTION 7.20.(b) In accordance with G.S.
115C-325 and by way of clarification, it shall not constitute a
demotion as that term is defined in G.S. 115C-325(a)(4) if:
(1) A teacher who receives a 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.(d) The State Board of Education
shall review the requirements for initial certification as a
teacher to determine whether the prescribed minimum score on the
PRAXIS examination is appropriate to demonstrate an applicant's
academic and professional preparation for teaching. The State
Board shall report the results of this study to the Joint
Legislative Education Oversight Committee by April 15, 2004.
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.(f) The State Board of Education
shall report to the Joint Legislative Education Oversight
Committee prior to July 1, 2004, on revisions the Board made to
the curriculum requirements for lateral entry candidates
pursuant to G.S. 115C-296(c), as rewritten by subsection (e) of
this section.
SECTION 7.20.(g) Subsection (c) of this section
is effective when this act becomes law and applies to all
persons initially employed as teachers by a local school
administrative unit in North Carolina for the 2003-2004 school
year or a subsequent school year.
SECTION 7.20.(h) This section expires June 30,
2004.
FUNDS FOR THE TESTING AND IMPLEMENTATION OF THE NEW STUDENT
INFORMATION SYSTEM
SECTION 7.21.(a) The State Board of Education may
transfer up to one million dollars ($1,000,000) in funds
appropriated for the Uniform Education Reporting System for the
2003-2004 fiscal year and up to one million dollars ($1,000,000)
in funds appropriated for the Uniform Education Reporting System
for the 2004-2005 fiscal year to the Department of Public
Instruction to lease or purchase equipment necessary for the
testing and implementation of NC WISE, the new student
information system in the public schools.
Testing shall include an emphasis on the security of the
system.
SECTION 7.21.(b) Funds appropriated for the
Uniform Education Reporting System shall not revert at the end
of the 2003-2004 and 2004-2005 fiscal years but shall remain
available until expended.
SECTION 7.21.(c) This section becomes effective
June 30, 2003.
LITIGATION RESERVE FUNDS
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
SECTION 7.24. Notwithstanding any other provision
of law, the Department of Public Instruction may use salary
reserve funds and other funds and may transfer funds within the
Department's continuation budget to implement budget reductions
for the 2003-2004 fiscal year.
REPLACEMENT SCHOOL BUSES FUNDS/SAFETY RULES FOR SCHOOL
ACTIVITY BUSES
SECTION 7.25.(a) Of the funds appropriated to the
State Board of Education, the Board may use up to fifteen
million dollars ($15,000,000) for the 2003-2004 fiscal year and
up to forty-seven million seven hundred fifty-two thousand eight
hundred thirteen dollars ($47,752,813) for the 2004-2005 fiscal
year for allotments to local boards of education for replacement
school buses under G.S. 115C-249(c) and (d). In making these
allotments, the State Board of Education may impose any of the
following conditions:
(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.
SECTION 7.25.(b) Any term contract for the
purchase or lease-purchase of school buses or school activity
buses shall not require vendor payment of the electronic
procurement transaction fee of the North Carolina E-Procurement
Service.
SECTION 7.25.(c) The State Board of Education
shall study the adequacy of the safety rules and policies
adopted by local boards of education regarding the use of
activity buses. The State Board shall report the results of
this study to the Joint Legislative Education Oversight
Committee by March 15, 2004.
EXPENDITURES FOR DRIVING ELIGIBILITY CERTIFICATES
SECTION 7.26. The State Board of Education may use
funds appropriated for drivers education for the 2003-2004
fiscal year and for the 2004-2005 fiscal year for driving
eligibility certificates.
DISCREPANCIES BETWEEN ANTICIPATED AND ACTUAL ADM
SECTION 7.27.(a) If the State Board of Education
does not have sufficient resources in the ADM Contingency
Reserve line item to make allotment adjustments in accordance
with the Allotment Adjustments for ADM Growth provisions of the
North Carolina Public Schools Allotment Policy Manual, the State
Board of Education may use funds appropriated to State Aid for
Public Schools for this purpose.
SECTION 7.27.(b) If the higher of the first or
second month average daily membership in a local school
administrative unit is at least two percent (2%) or 100 students
lower than the anticipated average daily membership used for
allotments for the unit, the State Board of Education shall
reduce allotments for the unit. The reduced allotments shall be
based on the higher of the first or second month average
daily membership plus one-half of the number of students
overestimated in the anticipated average daily membership.
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
SECTION 7.28. The State Board of Education may
spend up to fifty thousand dollars ($50,000) a year from State
Aid to Local School Administrative Units for the 2003-2004 and
2004-2005 fiscal years to continue support of a charter school
advisory committee and to continue to evaluate charter schools.
STUDY OF ISSUES RELATED TO RAPID GROWTH IN STUDENT POPULATION
SECTION 7.29. The Joint Legislative Education
Oversight Committee shall study the effects of rapid growth in
student population on local school administrative units. In the
course of the study, the Committee shall consider issues related
to rapid growth and strategies for addressing these issues. The
Committee shall report to the 2004 Regular Session of the 2003
General Assembly on its findings and recommendations.
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 7.30.(e) In addition to the report
required in subsection (d) of this section, the State shall also
evaluate the effectiveness of a representative sample of local
mentor programs and report on its findings to the Joint
Legislative Education Oversight Committee and the Fiscal
Research Division by December 15, 2004. The evaluation shall
focus on quantitative evidence, quality of service delivery, and
satisfaction of those involved. The report shall include the
results of the evaluation and recommendations both for improving
mentor programs generally and for an appropriate level of State
support for mentor programs.
EXPLORNET AUDIT
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.
SCHOOL NURSE SERVICES
SECTION 7.32. The State Board of Education shall
review the standards for the number of school nurses recommended
in the Basic Education Program to determine whether these
standards are being met by the local school administrative
units. The State Board shall compare the current standards with
standards recommended by national health organizations to
determine whether the current standards are adequate to meet the
changing needs and demands for health services of the current
and projected school populations. In its review, the Board shall
consider the need to change legal requirements for the provision
of health-related services to public school students in its
review.
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
SECTION 7.36. The State Board of Education shall
study the issue of weighted grades for high school students who
take university and community college courses. The State Board
of Education shall report the results of the study and its
recommendations on the issue to the Joint Legislative Education
Oversight Committee by December 15, 2003.
VOCATIONAL EDUCATION FUNDING
SECTION 7.37. It is the intent of the General
Assembly to eliminate funding for vocational education in the
seventh grade. Local school administrative units shall make
every effort to focus the vocational education budget reductions
on the seventh grade for 2003-2004 school year. For the
2004-2005 school year, after making the base allotment for each
local school administrative unit, the State Board of Education
shall use the average daily membership for grades eight through
twelve only to calculate vocational education budget allotments
to local school administrative units. For the 2004-2005 school
year, local school administrative units shall take all of the
vocational education budget reductions for the 2003-2005
biennium in the seventh grade before making reductions to other
grades.
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.
SECTION 7.18.(b) The State Board of Education
shall contract with an outside consultant to
study and propose modifications to the current North
Carolina initial certification, continuing certification, and
recertification programs that ensure high standards, support for
teachers, and high retention rates. Specifically, the
contractor State Board of Education
shall:
(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.
SECTION 7.18.(c) The State Board of Education
shall use the results of the study to make recommendations to:
(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.
SECTION 7.18.(d) The State Board of Education
shall enlist the assistance of the Southern Regional Education
Board in evaluating the responses to the request for
proposals. Prior to awarding the contract for the consultant
study, the State Board shall consult with the Joint Legislative
Education Oversight Committee.conducting the
study.
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.
SECTION 7.18.(e) The Joint Legislative Education
Oversight Committee shall make recommendations to the General
Assembly on any changes to law or policy affecting certification
of teachers on or after August 1, 2004, after reviewing the
findings and recommendations of the consultant and
State Board of Education."
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."
SECTION 7.40.(d) This section is effective when
it becomes law. The rewrite of G.S. 115C-81(h1)(2) set out in
subsection (b) of this section applies beginning with the
2004-2005 school year.
VISITING INTERNATIONAL FACULTY
SECTION 7.41. The State Board of Education shall
convert teacher positions to dollars for Visiting International
Faculty Program teachers for the 2003-2004 fiscal year on the
basis of the allotted average teacher salary and benefits.
PART VIII. COMMUNITY COLLEGES
COMMUNITY COLLEGE FUNDING FLEXIBILITY
SECTION 8.1. A local community college may use all
State funds allocated to it, except for Literacy Funds and Funds
for New and Expanding Industries, for any authorized purpose
that is consistent with the college's Institutional
Effectiveness Plan. Each local community college shall include
in its Institutional Effectiveness Plan a section on how funding
flexibility allows the college to meet the demands of the local
community and to maintain a presence in all previously funded
categorical programs.
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
SECTION 8.2. Notwithstanding G.S. 143-23 or any
other provision of law, the State Board of Community Colleges
may use salary reserve funds and other funds, and may transfer
funds within the Community College System Office continuation
budget to the extent necessary to implement budget reductions
for the 2003-2004 fiscal year.
STATE BOARD OF COMMUNITY COLLEGE MANAGEMENT FLEXIBILITY
SECTION 8.3. Within 30 days of the date this act
becomes law, the State Board of Community Colleges shall notify
each college of the amount the college must reduce from State
General Fund appropriations. The State Board shall determine
the amount of the reduction for each unit on the basis of FTE or
another method that accounts for the unique needs of specific
colleges.
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 8.4. Of the funds appropriated to the North
Carolina Community College System for the 2003-2005 fiscal
biennium, the State Board of Community Colleges may use up to
one hundred thousand dollars ($100,000) each year to pay
registration fees and material costs for Occupational Continuing
Education or Focused Industrial Training safety courses provided
to companies that (i) are eligible to participate in the Focused
Industrial Training Program, (ii) have less than 150 employees,
and (iii) are found by community college representatives and
regional customized training directors to face challenges in
paying these fees and costs. These funds shall not be expended
without the prior approval of the North Carolina Community
College System Office, Division of Economic and Workforce
Development.
SUMMER SCHOOL FUNDING
SECTION 8.5. The General Assembly encourages the
North Carolina Community Colleges System to use funds
appropriated to support summer term curriculum FTE to address
issues associated with worker shortages in high-needs industries
such as (i) Business Technology, (ii) Health Sciences, (iii)
Child Care Training, and (iv) Public Service Technologies
including law enforcement, fire protection, and education.
CARRYFORWARD FOR EQUIPMENT
SECTION 8.6.(a) Subject to cash availability, the
North Carolina Community Colleges System may carry forward an
amount not to exceed five million dollars ($5,000,000) of the
operating funds held in reserve that were not reverted in fiscal
year 2002-2003 to be reallocated to the State Board of Community
Colleges' Equipment Reserve Fund. These funds should be
distributed to colleges consistent with G.S. 115D-31.
SECTION 8.6.(b) This section becomes effective
June 30, 2003.
HOSIERY CENTER FUNDS
SECTION 8.7. Notwithstanding any other provision of
law, all fees collected by the Hosiery Technology Center of
Catawba Valley Community College for the testing of hosiery
products shall be retained by the Center and used for the
operations of the Center. Purchases made by the Center using
these funds are not subject to the provisions of Article 3 of
Chapter 143 of the General Statutes.
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.
AUTOMOTIVE TRAINING INCENTIVE
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.
COMMUNITY COLLEGES TRUST FUND
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.
TUITION MODIFICATIONS
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 8.16A.(b) The State Board of Community
Colleges shall report to the Senate Committee on Appropriations
and the House of Representatives Committee on Appropriations in
April of 2004 on the implementation of this section during the
2003-2004 academic year.
PART IX. UNIVERSITIES
UNC FLEXIBILITY GUIDELINES
SECTION 9.1. The Chancellor of each constituent
institution shall report to the Board of Governors of The
University of North Carolina on the reductions made to the
General Fund budget codes in order to meet the reduction reserve
amounts for that institution. The President of The University of
North Carolina shall report to the Board of Governors of The
University of North Carolina on the reductions made to the
General Fund budget codes controlled by the Board in order to
meet the reduction reserve amounts for those entities. The
Board of Governors shall make a summary report to the Office of
State Budget and Management and the Fiscal Research Division by
December 31, 2003, on all reductions made by these entities and
constituent institutions in order to reduce the budgets by the
targeted amounts.
ESCHEAT FUNDS
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
SECTION 9.3.(a) Pursuant to Section 2(b) of S.L.
2000-3, the General Assembly finds that it is in the best
interest of the State to respond to current educational and
research program requirements at Elizabeth City State University
by substituting a project entitled "Campus Infrastructure
Improvements" for "Doles Residence Hall - Comprehensive
Renovation" as contained in Section 2(a) of S.L. 2000-3, as a
residence hall that has been provided for from housing receipts
and campus infrastructure improvements will allow energy
conservation and savings. Section 2(a) of S.L. 2000-3 is
therefore amended in the portion under Elizabeth City State
University by deleting "Doles Residence Hall - Comprehensive
Renovation...$1,722,500" and by substituting "Campus
Infrastructure Improvements...$1,722,500".
SECTION 9.3.(a1) With the approval of the Board
of Governors of The University of North Carolina, Elizabeth City
State University may transfer funds from bond projects for
planning facilities needed for the Joint Pharmacy Program.
SECTION 9.3.(b) Pursuant to Section 2(b) of S.L.
2000-3, the General Assembly finds that it is in the best
interest of the State to respond to current educational and
research program requirements at North Carolina Central
University, due to increasing enrollment growth, by substituting
a project entitled "Pearson Cafeteria - Expansion" for "Pearson
Cafeteria - Comprehensive Renovation" as contained in Section
2(a) of S.L. 2000-3, by deleting a project entitled "Old Senior
Dorm - Conversion to Academic Use" as contained in Section 2(a)
of S.L. 2000-3 and by transferring the funds of two million one
hundred thirty thousand seven hundred dollars ($2,130,700) from
the project entitled "Old Senior Dorm - Conversion to Academic
Use", as contained in Section 2(a) of S.L. 2000-3, and by
transferring a portion of the funds from a project entitled
"Farrison-Newton Building - Comprehensive Renovation of
Classroom Building", as contained in Section 2(a) of S.L.
2000-3, to this substitute project. Section 2(a) of S.L. 2000-3
is therefore amended as follows:
(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.
SECTION 9.3.(c) Pursuant to Section 2(b) of S.L.
2000-3, the General Assembly finds that it is in the best
interest of the State to respond to current educational and
research program requirements at the University of North
Carolina at Asheville by substituting a project entitled
"Carmichael Hall Classroom Building - Demolition and New
Construction" for "Carmichael Hall Classroom Building -
Comprehensive Renovation" as contained in Section 2(a) of S.L.
2000-3, as it has been determined that it is more cost-effective
to replace this facility than to renovate it. Section 2(a) of
S.L. 2000-3 is therefore amended in the portion under the
University of North Carolina at Asheville by deleting
"Carmichael Hall Classroom Building - Comprehensive Renovation"
and by adding "Carmichael Hall Classroom Building - Demolition
and New Construction".
SECTION 9.3.(d) Pursuant to Section 2(b) of S.L.
2000-3, the General Assembly finds that it is in the best
interest of the State to respond to current educational and
research program requirements at the University of North
Carolina at Pembroke, due to enrollment growth higher than
projected, by adding a project entitled "General Purpose
Classroom Building" to Section 2(a) of S.L. 2000-3 and by
transferring a portion of the funds from the project entitled
"Residence/Dining Hall - Replacement of Jacobs & Wellons Halls",
as contained in Section 2(a) of S.L. 2000-3, to this substitute
project. Section 2(a) of S.L. 2000-3 is therefore amended in the
portion under the University of North Carolina at Pembroke by
substituting "Residence/Dining Hall - Replacement of Jacobs &
Wellons Halls...$325,300" and by adding "General Purpose Classroom
Building...$7,375,000".
SECTION 9.3.(e) Pursuant to Section 2(b) of S.L.
2000-3, the General Assembly finds that it is in the best
interest of the State to respond to current educational and
research program requirements at Winston-Salem State University
by substituting a project entitled "Anderson Center -
Comprehensive Renovation" for "Anderson Center - Comprehensive
Renovation & Change of Use for Early Childhood/Gerontology
Programs", as contained in Section 2(a) of S.L. 2000-3, by
adding a project entitled "Coltrane Hall - Renovation to House
Gerontology", by transferring a portion of the funds from the
project entitled "Anderson Center - Comprehensive Renovation &
Change of Use for Early Childhood/Gerontology Programs", as
contained in Section 2(a) of S.L. 2000-3, to the new project
entitled "Coltrane Hall - Renovation to House Gerontology", by
adding a project entitled "New Facility for the Early Childhood
Program", and by transferring a portion of the funds from the
project entitled "Anderson Center - Comprehensive Renovation &
Change of Use for Early Childhood/Gerontology Programs", as
contained in Section 2(a) of S.L. 2000-3, to the new project
entitled "New Facility for the Early Childhood Program".
Section 2(a) of S.L. 2000-3 is therefore amended as follows:
(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".
SECTION 9.3.(f) Pursuant to Section 2(b) of S.L.
2000-3, the General Assembly finds that it is in the best
interest of the State to respond to current educational and
research program requirements at Winston-Salem State University
by substituting a project entitled "New Student Health Center"
for "Health Center Bldg. & Old Nursing Bldg. - Comprehensive
Renovation for Student Health", as contained in Section 2(a) of
S.L. 2000-3, and by using the existing project budget for a new
health facility, as it has been determined that the two existing
buildings are in poor condition and have been recommended for
future demolition. Section 2(a) of S.L. 2000-3 is therefore
amended in the portion under Winston-Salem State University by
deleting "Health Center Bldg. and Old Nursing Bldg. -
Comprehensive Renovation for Student Health" and by substituting
"New Student Health Center".
SECTION 9.3.(g) Nothing in this section is
intended to supersede any other requirement of law or policy for
approval of the substituted capital improvement projects.
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
SECTION 9.7. Of the funds appropriated by this act
to the Board of Governors of The University of North Carolina
for the 2003-2004 fiscal year, the Board of Governors shall
allocate the sum of twenty-four thousand dollars ($24,000) to
the Wilmington AHEC program for the 2003-2004 fiscal year and
the sum of twenty-four thousand dollars ($24,000) to the Region
L. AHEC program for the 2003-2004 fiscal year to pay for
information highway line charges.
FUNDS FOR TEACCH PROGRAM
SECTION 9.8. Of the funds appropriated in this act
to the Board of Governors of The University of North Carolina,
the sum of one hundred eighty-seven thousand dollars ($187,000)
for the 2003-2004 fiscal year and the sum of one hundred
eighty-seven thousand dollars ($187,000) for the 2004-2005
fiscal year shall be used for the Division TEACCH program at the
University of North Carolina at Chapel Hill.
NORTH CAROLINA AGRICULTURAL AND TECHNICAL STATE
UNIVERSITY/ALLOCATE STATE MATCHING FUNDS FOR 2004-2005 FISCAL
YEAR
SECTION 9.9. Of the funds appropriated to The Board
of Governors of The University of North Carolina for the
2004-2005 fiscal year the sum of one million ninety-two thousand
nine hundred forty-four dollars ($1,092,944) shall be allocated
to North Carolina Agricultural and Technical State University
for the 2004-2005 fiscal year to continue to match federal funds
for conducting agricultural research and cooperative extension
service work.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
SUBPART 1. ADMINISTRATION
PETROLEUM OVERCHARGE FUNDS ALLOCATION
SECTION 10.1.(a) There is appropriated from funds
and interest thereon received from the case of United States
v. Exxon that remain in the Special Reserve for Oil
Overcharge Funds to the Department of Health and Human Services
the sum of one million dollars ($1,000,000) for the 2003-2004
fiscal year to be allocated for the Weatherization Assistance
Program.
SECTION 10.1.(b) Any funds remaining in the
Special Reserve for Oil Overcharge Funds after the allocation
made pursuant to subsection (a) of this section may be expended
only as authorized by the General Assembly. All interest or
income accruing from all deposits or investments of cash
balances shall be credited to the Special Reserve for Oil
Overcharge Funds.
OFFICE OF POLICY AND PLANNING
SECTION 10.2.(a) To promote coordinated policy
development and strategic planning for the State's health and
human services systems, the Secretary of Health and Human
Services shall establish an Office of Policy and Planning from
existing resources across the Department. The Director of the
Office of Policy and Planning shall report directly to the
Secretary and shall have the following responsibilities:
(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
SECTION 10.3. Article 2 of Chapter 108A of the
General Statutes is amended by adding the following new Part to
read:
"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
SECTION 10.4. Providers of medical services under
the various State programs, other than Medicaid, offering
medical care to citizens of the State shall be reimbursed at
rates no more than those under the North Carolina Medical
Assistance Program.
The Department of Health and Human Services may
reimburse hospitals at the full prospective per diem rates
without regard to the Medical Assistance Program's annual limits
on hospital days. When the Medical Assistance Program's per diem
rates for inpatient services and its interim rates for
outpatient services are used to reimburse providers in
non-Medicaid medical service programs, retroactive adjustments
to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one, the
Department of Health and Human Services may negotiate with
providers of medical services under the various Department of
Health and Human Services programs, other than Medicaid, for
rates as close as possible to Medicaid rates for the following
purposes: contracts or agreements for medical services and
purchases of medical equipment and other medical supplies. These
negotiated rates are allowable only to meet the medical needs of
its non-Medicaid eligible patients, residents, and clients who
require such services which cannot be provided when limited to
the Medicaid rate.
Maximum net family annual income eligibility standards
for services in these programs shall be as follows:
Medical Eye Rehabilitation Except
Family SizeCare AdultsDSB 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:
IncomeState ParticipationClient
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
SECTION 10.5. The Department of Health and Human
Services may administer the "Senior Cares" prescription drug
access program approved by the Health and Wellness Trust Fund
Commission and funded from the Health and Wellness Trust Fund.
PHYSICIAN SERVICES
SECTION 10.6. With the approval of the Office of
State Budget and Management, the Department of Health and Human
Services may use funds appropriated in this act for
across-the-board salary increases and performance pay to offset
similar increases in the costs of contracting with private and
independent universities for the provision of physician services
to clients in facilities operated by the Division of Mental
Health, Developmental Disabilities, and Substance Abuse
Services. This offsetting shall be done in the same manner as
is currently done with the constituent institutions of The
University of North Carolina.
LIABILITY INSURANCE
SECTION 10.7.(a) The Secretary of the Department of
Health and Human Services, the Secretary of the Department of
Environment and Natural Resources, and the Secretary of the
Department of Correction may provide medical liability coverage
not to exceed one million dollars ($1,000,000) per incident on
behalf of employees of the Departments licensed to practice
medicine or dentistry, on behalf of all licensed physicians who
are faculty members of The University of North Carolina who work
on contract for the Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services for incidents that
occur in Division programs, and on behalf of physicians in all
residency training programs from The University of North
Carolina who are in training at institutions operated by the
Department of Health and Human Services. This coverage may
include commercial insurance or self-insurance and shall cover
these individuals for their acts or omissions only while they
are engaged in providing medical and dental services pursuant to
their State employment or training.
SECTION 10.7.(b) The coverage provided under
this section shall not cover any individual for any act or
omission that the individual knows or reasonably should know
constitutes a violation of the applicable criminal laws of any
state or the United States or that arises out of any sexual,
fraudulent, criminal, or malicious act or out of any act
amounting to willful or wanton negligence.
SECTION 10.7.(c) The coverage provided pursuant
to this section shall not require any additional appropriations
and shall not apply to any individual providing contractual
service to the Department of Health and Human Services, the
Department of Environment and Natural Resources, or the
Department of Correction, with the exception that coverage may
include physicians in all residency training programs from The
University of North Carolina who are in training at institutions
operated by the Department of Health and Human Services and
licensed physicians who are faculty members of The University of
North Carolina who work for the Division of Mental Health,
Developmental Disabilities, and Substance Abuse Services.
BUTNER COMMUNITY LAND RESERVATION
SECTION 10.8. The Department of Health and Human
Services shall reserve and dedicate the following described land
for the construction of a community building and related
facilities to serve the Butner 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."
UNLAWFUL PRACTICE OF PHARMACY
SECTION 10.8D. Article 4A of Chapter 90 of the
General Statutes is amended by adding a new section to read:
"§ 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
SECTION 10.8E. Notwithstanding any other provision
of law to the contrary, the requirements of G.S. 131E-265 for
nursing homes to conduct national criminal history record checks
for employment positions other than those involving direct
patient care shall become effective no earlier than January 1,
2005. Notwithstanding any other provision of law to the
contrary, the requirements of G.S. 131D-2 for adult care homes
to conduct national criminal records checks for all staff
positions shall become effective no earlier than January 1,
2005.
IMPLEMENT A PILOT PROJECT FOR LONG-TERM CARE COMMUNITY
SERVICE COORDINATION
SECTION 10.8F.(a) In accordance with the
recommendations in the final report from the Institute of
Medicine Task Force on Long-Term Care and the study report
recommendations resulting from S.L. 2001-491, Part XXII, the
Department of Health and Human Services shall implement a
communications and coordination initiative to support local
coordination of long-term care and shall pilot the establishment
of local lead agencies to facilitate the long-term care
coordination process at the county or regional level. For those
counties that voluntarily participate, the local long-term care
coordination initiative shall aid in the development of core
services, coordinate local services, and streamline access to
services. The initiative shall eliminate fragmentation and
barriers to information and services; provide a seamless
connection among State agencies and local entities, regardless
of funding sources; and allow consumers to efficiently and
effectively navigate among long-term care services.
SECTION 10.8.F.(b) The Department shall submit
an interim report on the pilot project for local long-term care
coordination to the North Carolina Study Commission on Aging by
October 1, 2004, and a final report by October 1, 2005.
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
SECTION 10.9. Moneys in the Trust Fund established
pursuant to G.S. 143-15.3D shall be used to establish or expand
community-based services only if sufficient recurring funds can
be identified within the Department of Health and Human Services
from funds currently budgeted for mental health, developmental
disabilities, and substance abuse services, area mental health
programs or county programs, or local government.
EXTEND MENTAL HEALTH CONSUMER ADVOCACY PROGRAM CONTINGENT
UPON FUNDS APPROPRIATED BY THE 2005 GENERAL ASSEMBLY
SECTION 10.10. Section 4 of S.L. 2001-437, as
amended by Section 10.30 of S.L. 2002-126, reads as rewritten:
"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
SECTION 10.11. The Department of Health and Human
Services shall report on its activities under Section 10.24 of
S.L. 2002-126 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 December 1, 2003.
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.
SECTION 10.14.(b) Any savings in State
appropriations in each year of the 2003-2005 fiscal biennium
that result from reductions in beds or services shall be applied
as follows:
(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.
SECTION 10.14.(c) The Department of Health and
Human Services shall report on its progress in complying with
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. The progress report shall be submitted not
later than January 15, 2004, and a final report submitted not
later than May 1, 2004.
SECTION 10.14.(d) Downsizing of mental
retardation centers which occurs in the 2003-2004 fiscal year
shall be maintained for the 2004-2005 fiscal year. Effective
July 1, 2003, downsizing shall be accomplished in accordance
with this section and the State Plan for Mental Health,
Developmental Disabilities, and Substance Abuse Services. All
savings resulting from downsizing occurring on and after July 1,
2003, shall be utilized as set forth in subsection (b) of this
section.
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
SECTION 10.17.(a) Area mental health, developmental
disabilities, and substance abuse authorities or counties
administering mental health, developmental disabilities, and
substance abuse services shall develop and implement plans to
reduce local administrative costs. The plans shall be developed
in accordance with guidelines adopted by the Secretary, in
consultation with the Local Government Commission and the North
Carolina Association of County Commissioners, and in accordance
with the following:
(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%).
SECTION 10.17.(b) The Department of Health and
Human Services shall report its progress in complying with this
section not later than January 1, 2004, and April 15, 2004. The
reports shall be submitted 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 and shall include:
(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.
SECTION 10.17.(c) The Department may implement
alternative approaches to establish reasonable administrative
cost limitations for Local Management Entities (LMEs), including
both county programs and area authority models, and service
providers in accordance with system reform and changes in system
funding structures.
PRIVATE AGENCY UNIFORM COST FINDING REQUIREMENT
SECTION 10.18.(a) To ensure uniformity in rates
charged to area programs and funded with State-allocated
resources, the Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services of the Department of
Health and Human Services may require a private agency that
provides services under contract with an area program or county
program, except for hospital services that have an established
Medicaid rate, to complete an agency-wide uniform cost finding
in accordance with G.S. 122C-147.2. The resulting cost shall be
the maximum included for the private agency in the contracting
area program's unit cost finding.
SECTION 10.18.(b) If a private agency fails to
timely and accurately complete the required agency-wide uniform
cost finding in a manner acceptable to the Department's
controller's office, the Department may suspend all Department
funding and payment to the private agency until such time as an
acceptable cost finding has been completed by the private agency
and approved by the Department's controller's office.
GROUP HOME TRACKING SYSTEM
SECTION 10.18A. The Department of Health and Human
Services shall use funds within its budget for the 2003-2004
fiscal year to develop a group home tracking system.
SUBPART 3. DIVISION OF MEDICAL ASSISTANCE
MEDICAID
SECTION 10.19.(a) Funds appropriated in this act
for services provided in accordance with Title XIX of the Social
Security Act (Medicaid) are for both the categorically needy and
the medically needy. Funds appropriated for these services shall
be expended in accordance with the following schedule of
services and payment bases. All services and payments are
subject to the language at the end of this subsection.
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.
SECTION 10.19.(b) Allocation of Nonfederal Cost
of Medicaid. - The State shall pay eighty-five percent (85%);
the county shall pay fifteen percent (15%) of the nonfederal
costs of all applicable services listed in this section.
SECTION 10.19.(c) Copayment for Medicaid
Services. - The Department of Health and Human Services may
establish co-payment up to the maximum permitted by federal law
and regulation.
SECTION 10.19.(d) Medicaid and Work First Family
Assistance, Income Eligibility Standards. - The maximum net
family annual income eligibility standards for Medicaid and Work
First Family Assistance and the Standard of Need for Work First
Family Assistance shall be as follows:
Categorically Needy Medically Needy
WFFA*
Family Standard Families and
Sizeof Need Children Income
LevelAA, 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.
SECTION 10.19.(e) The Department of Health and
Human Services, Division of Medical Assistance, shall provide
Medicaid coverage to all elderly, blind, and disabled people who
have incomes equal to or less than one hundred percent (100%) of
the federal poverty guidelines, as revised each April 1.
SECTION 10.19.(f) ICF and ICF/MR Work Incentive
Allowances. - The Department of Health and Human Services may
provide an incentive allowance to Medicaid-eligible recipients
of ICF and ICF/MR facilities who are regularly engaged in work
activities as part of their developmental plan and for whom
retention of additional income contributes to their achievement
of independence. The State funds required to match the federal
funds that are required by these allowances shall be provided
from savings within the Medicaid budget or from other unbudgeted
funds available to the Department. The incentive allowances may
be as follows:
Monthly Net WagesMonthly 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.
SECTION 10.19.(g) Dental Coverage Limits. -
Dental services shall be provided on a restricted basis in
accordance with rules adopted by the Department to implement
this subsection.
SECTION 10.19.(h) Dispensing of Generic Drugs. -
Notwithstanding G.S. 90-85.27 through G.S. 90-85.31, or any
other law to the contrary, under the Medical Assistance Program
(Title XIX of the Social Security Act), and except as otherwise
provided in this subsection for atypical antipsychotic drugs and
drugs listed in the narrow therapeutic index, a prescription
order for a drug designated by a trade or brand name shall be
considered to be an order for the drug by its established or
generic name, except when the prescriber has determined, at the
time the drug is prescribed, that the brand name drug is
medically necessary and has written on the prescription order
the phrase "medically necessary". An initial prescription order
for an atypical antipsychotic drug or a drug listed in the
narrow therapeutic drug index that does not contain the phrase
"medically necessary" shall be considered an order for the drug
by its established or generic name, except that a pharmacy shall
not substitute a generic or established name prescription drug
for subsequent brand or trade name prescription orders of the
same prescription drug without explicit oral or written approval
of the prescriber given at the time the order is filled. Generic
drugs shall be dispensed at a lower cost to the Medical
Assistance Program rather than trade or brand name drugs. As
used in this subsection, "brand name" means the proprietary name
the manufacturer places upon a drug product or on its container,
label, or wrapping at the time of packaging; and "established
name" has the same meaning as in section 502(e)(3) of the
Federal Food, Drug, and Cosmetic Act as amended, 21 U.S.C. §
352(e)(3).
SECTION 10.19.(i) The Department of Health and
Human Services shall not impose prior authorization requirements
or other restrictions under the State Medical Assistance Program
on medications prescribed for Medicaid recipients for the
treatment of: (i) mental illness, including, but not limited to,
medications for schizophrenia, bipolar disorder, and major
depressive disorder, or (ii) HIV/AIDS.
SECTION 10.19.(j) Exceptions to Service
Limitations, Eligibility Requirements, and Payments. - Service
limitations, eligibility requirements, and payments bases in
this section may be waived by the Department of Health and Human
Services, with the approval of the Director of the Budget, to
allow the Department to carry out pilot programs for prepaid
health plans, contracting for services, managed care plans, or
community-based services programs in accordance with plans
approved by the United States Department of Health and Human
Services or when the Department determines that such a waiver
will result in a reduction in the total Medicaid costs for the
recipient. The Department of Health and Human Services may
proceed with planning and development work on the Program of
All-Inclusive Care for the Elderly.
SECTION 10.19.(k) Volume Purchase Plans and
Single Source Procurement. - The Department of Health and Human
Services, Division of Medical Assistance, may, subject to the
approval of a change in the State Medicaid Plan, contract for
services, medical equipment, supplies, and appliances by
implementation of volume purchase plans, single source
procurement, or other contracting processes in order to improve
cost containment.
SECTION 10.19.(l) Cost-Containment Programs. -
The Department of Health and Human Services, Division of Medical
Assistance, may undertake cost-containment programs in
accordance with Section 3 of S.L. 2001-395, including
contracting for services, preadmissions to hospitals, and prior
approval for certain outpatient surgeries before they may be
performed in an inpatient setting.
SECTION 10.19.(m) For all Medicaid eligibility
classifications for which the federal poverty level is used as
an income limit for eligibility determination, the income limits
will be updated each April 1 immediately following publication
of federal poverty guidelines.
SECTION 10.19.(n) The Department of Health and
Human Services shall provide Medicaid to 19-, 20-, and
21-year-olds in accordance with federal rules and regulations.
SECTION 10.19.(o) The Department of Health and
Human Services shall provide coverage to pregnant women and to
children according to the following schedule:
(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.
SECTION 10.19.(p) Medicaid enrollment of
categorically needy families with children shall be continuous
for one year without regard to changes in income or assets.
SECTION 10.19.(q) The Division of Medical
Assistance, Department of Health and Human Services, may provide
incentives to counties that successfully recover fraudulently
spent Medicaid funds by sharing State savings with counties
responsible for the recovery of the fraudulently spent funds.
SECTION 10.19.(r) If first approved by the
Office of State Budget and Management, the Division of Medical
Assistance, Department of Health and Human Services, may use
funds that are identified to support the cost of development and
acquisition of equipment and software through contractual means
to improve and enhance information systems that provide
management information and claims processing. The Department of
Health and Human Services shall identify adequate funds to
support the implementation and first year's operational costs
that exceed the currently allocated funds for the new contract
for the fiscal agent for the Medicaid Management Information
System.
SECTION 10.19.(s) The Department of Health and
Human Services may adopt temporary or emergency rules according
to the procedures established in G.S. 150B-21.1 and G.S.
150B-21.1A when it finds that these rules are necessary to
maximize receipt of federal funds within existing State
appropriations, to reduce Medicaid expenditures, and to reduce
fraud and abuse. Prior to the filing of these temporary or
emergency rules with the Rules Review Commission and the Office
of Administrative Hearings, the Department shall consult with
the Office of State Budget and Management on the possible fiscal
impact of the temporary or emergency rule and its effect on
State appropriations and local governments.
SECTION 10.19.(t) The Department shall report to
the Fiscal Research Division of the Legislative Services Office
and to the House of Representatives Appropriations Subcommittee
on Health and Human Services and the Senate Appropriations
Committee on Health and Human Services or the Joint Legislative
Health Care Oversight Committee on any change it anticipates
making in the Medicaid Program that impacts the type or level of
service, reimbursement methods, or waivers, any of which require
a change in the State Plan or other approval by the Centers for
Medicare and Medicaid Services (CMS). The reports shall be
provided at the same time they are submitted to CMS for
approval.
SECTION 10.19.(u) Upon approval of a
demonstration waiver by the Centers for Medicare and Medicaid
Services (CMS), the Department of Health and Human Services may
provide Medicaid coverage for family planning services to men
and women of child-bearing age with family incomes equal to or
less than one hundred eighty-five percent (185%) of the federal
poverty level. Coverage shall be contingent upon federal
approval of the waiver and shall begin no earlier than January
1, 2001.
SECTION 10.19.(v) The Department of Health and
Human Services, Division of Medical Assistance, shall use the
latest audited cost reporting data available when establishing
Medicaid provider rates or when making changes to the
reimbursement methodology. For hospital services, the Division
shall use the latest audited cost reporting data available,
supplemented by additional financial information available to
the Division if and to the extent that the Division concludes
that the information is reliable and relevant, when establishing
rates or when making changes to the reimbursement methodology.
SECTION 10.19.(w) The Department of Health and
Human Services, Division of Medical Assistance, shall implement
a new coding system for therapeutic mental health services as
required by the Health Insurance Portability and Accountability
Act of 1996. In implementing the new coding system, the Division
shall ensure that the new coding system does not discriminate
between providers of therapeutic mental health services with
similar qualifications and training. In meeting the requirements
of this subsection, the Division shall consult with the Division
of Mental Health, Developmental Disabilities, and Substance
Abuse Services and the professional licensing boards responsible
for licensing the affected professionals.
SECTION 10.19.(x) The Department of Health and
Human Services may apply federal transfer of assets policies, as
described in Title XIX, section 1917(c) of the Social Security
Act, including the attachment of liens, to real property
excluded as "income producing", tenancy-in-common, or as
nonhomesite property made "income producing" under Title XIX,
section 1902(r)(2) of the Social Security Act. The transfer of
assets policy shall apply only to an institutionalized
individual or the individual's spouse as defined in Title XIX,
section 1917(c) of the Social Security Act. This subsection
becomes effective no earlier than October 1, 2001. Federal
transfer of asset policies and attachment of liens to properties
excluded as tenancy-in-common or as nonhomesite property made
"income producing" in accordance with this subsection shall
become effective not earlier than November 1, 2002.
SECTION 10.19.(y) When implementing the
Supplemental Security Income (SSI) method for considering equity
value of income producing property, the Department shall, to the
maximum extent possible, employ procedures to mitigate the
hardship to Medicaid enrollees occurring from application of the
Supplemental Security Income (SSI) method.
SECTION 10.19.(z) Unless required for compliance
with federal law, the Department shall not change medical policy
affecting the amount, sufficiency, duration, and scope of health
care services and who may provide services until the Division of
Medical Assistance has prepared a five-year fiscal analysis
documenting the increased cost of the proposed change in medical
policy and submitted it for Departmental review. If the fiscal
impact indicated by the fiscal analysis for any proposed medical
policy change exceeds three million dollars ($3,000,000) in
total requirements for a given fiscal year, then the Department
shall submit the proposed policy change with the fiscal analysis
to the Office of State Budget and Management and the Fiscal
Research Division. The Department shall not implement any
proposed medical policy change exceeding three million dollars
($3,000,000) in total requirements for a given fiscal year
unless the source of State funding is identified and approved by
the Office of State Budget and Management. The Department shall
provide the Office of State Budget and Management and the Fiscal
Research Division a quarterly report itemizing all medical
policy changes with total requirements of less than three
million dollars ($3,000,000).
SECTION 10.19.(aa) The Department of Health and
Human Services, Division of Medical Assistance, shall convene a
work group to review the current Medicaid standards for vision
screening for Medicaid-eligible children to determine whether
the standards are meeting the vision needs of these children.
The Secretary shall appoint to the work group pediatricians,
ophthalmologists, optometrists, and other individuals with
expertise or interest in children's vision care. The Department
shall report the findings of the work group 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 by March 1,
2004. The report shall include recommendations on whether
current Medicaid standards need to be modified to meet the
vision care needs of Medicaid-eligible children and, if
modification is necessary, the cost of providing vision services
based on the modified standards.
SECTION 10.19.(bb) The Department shall develop,
amend, and adopt medical coverage policy in accordance with the
following:
(1) During the development of new medical coverage
policy or amendment to existing medical coverage
policy, consult with and seek the advice of the
Physician Advisory Group of the North Carolina
Medical Society and other organizations the
Secretary deems appropriate. The Secretary shall
also consult with and seek the advice of officials
of the professional societies or associations
representing providers 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
SECTION 10.20. Of the funds transferred to the
Department of Health and Human Services for Medicaid programs
pursuant to G.S. 143-23.2, the sum of sixty-two million five
hundred thousand dollars ($62,500,000) for the 2003-2004 fiscal
year and the sum of sixty-two million five hundred thousand
dollars ($62,500,000) for the 2004-2005 fiscal year shall be
allocated as prescribed by G.S. 143-23.2(b) for Medicaid
programs. Notwithstanding the prescription in G.S. 143-23.2(b)
that these funds not reduce State general revenue funding, these
funds shall replace the reduction in general revenue funding
effected in this act.
DISPOSITION OF DISPROPORTIONATE SHARE RECEIPTS
SECTION 10.21.(a) Disproportionate share receipts
reserved at the end of the 2003-2004 and 2004-2005 fiscal years
shall be deposited with the Department of State Treasurer as
nontax revenue for each of those fiscal years.
SECTION 10.21.(b) For each year of the 2003-2005
fiscal biennium, as it receives funds associated with
Disproportionate Share Payments from State hospitals, the
Department of Health and Human Services, Division of Medical
Assistance, shall deposit up to one hundred million dollars
($100,000,000) of these Disproportionate Share Payments to the
Department of State Treasurer for deposit as nontax revenue.
Any Disproportionate Share Payments collected in excess of one
hundred million dollars ($100,000,000) shall be reserved by the
State Treasurer for future appropriations.
COUNTY MEDICAID COST SHARE
SECTION 10.22.(a) Effective July 1, 2000, the
county share of the cost of Medicaid services currently and
previously provided by area mental health authorities shall be
increased incrementally each fiscal year until the county share
reaches fifteen percent (15%) of the nonfederal share by State
fiscal year 2009-2010.
SECTION 10.22.(b) Effective July 1, 2000, the
county share of the cost of Medicaid Personal Care Services paid
to adult care homes shall be decreased incrementally each fiscal
year until the county share reaches fifteen percent (15%) of the
nonfederal share by State fiscal year 2009-2010.
MEDICAID COST CONTAINMENT ACTIVITIES
SECTION 10.23. The Department of Health and Human
Services may use not more than five million dollars ($5,000,000)
in the 2003-2004 fiscal year and not more than three million
dollars ($3,000,000) in the 2004-2005 fiscal year in Medicaid
funds budgeted for program services to support the cost of
administrative activities when cost-effectiveness and savings
are demonstrated. The funds shall be used to support activities
that will contain the cost of the Medicaid Program, including
contracting for services or hiring additional staff. Medicaid
cost-containment activities may include prospective
reimbursement methods, incentive-based reimbursement methods,
service limits, prior authorization of services, periodic
medical necessity reviews, revised medical necessity criteria,
service provision in the least costly settings, plastic magnetic
stripped Medicaid identification cards for issuance to Medicaid
enrollees, fraud detection software or other fraud detection
activities, credit balance recovery and data mining services,
and other cost-containment activities. Funds may be expended
under this section only after the Office of State Budget and
Management has approved a proposal for the expenditure submitted
by the Department. Proposals for expenditure of funds under this
section shall include the cost of implementing the
cost-containment activity and documentation of the amount of
savings expected to be realized from the cost-containment
activity. The Department shall provide a copy of proposals for
expenditures under this section to the Fiscal Research Division.
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."
MEDICARE ENROLLMENT REQUIRED
SECTION 10.27. 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. 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 10.28.(a) The Secretary of Health and Human
Services shall implement a Medicaid assessment program for
skilled nursing facilities licensed under Chapter 131E of the
General Statutes. The assessment shall be imposed in a manner
consistent with federal regulations under 42 C.F.R. Part 433,
Subpart B. The Department shall impose the assessment effective
October 1, 2003. Funds realized from assessments imposed shall
be used only to draw down federal Medicaid matching funds for
implementing the new reimbursement plan for nursing homes and
for increasing nursing facility rates in accordance with the
plan.
SECTION 10.28.(b) Funds realized from the
Medicaid assessment program established pursuant to subsection
(a) of this section shall not be used to supplant State funds
appropriated for nursing facility services.
SECTION 10.28.(c) Funds realized from the
assessment shall be used to pay one hundred percent (100%) of
the nonfederal share for the new reimbursement plan for nursing
homes.
HEALTH CHOICE
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.
SECTION 10.29B.(c) The Department of Health and
Human Services shall review, on a pilot basis, a selected number
of CAP/DA programs to determine compliance with eligibility
requirements for the program. The Department shall include the
results of the review in its report to the Study Commission on
Aging required under subsection (b) of this section.
MEDICAID HOSPITAL PAYMENTS
SECTION 10.29C. The Department of Health and Human
Services shall evaluate all medical payment programs and
policies administered by the Department that may affect the
future viability and sustainability of financially vulnerable
hospitals. Based on the evaluation of the medical payment
programs and policies affecting hospitals, the Department shall
implement those programs and policies such that they have the
least impact on the future viability and sustainability of
financially vulnerable hospitals. The Department shall also
review the status of financially vulnerable hospitals to
determine whether additional State actions are appropriate to
ensure that communities served by these hospitals continue to
receive essential medical services. The Department shall consult
with the North Carolina Hospital Association while conducting
the evaluation of medical payment programs and policies and
determining how to implement them. The Department shall report
to the House of Representatives Appropriations Subcommittee on
Health and Human Services, the Senate Appropriations Committee
on Health and Human Services, and the Fiscal Research Division
on its activities under this section not later than November 1,
2003.
SUBPART 4. DIVISION OF PUBLIC HEALTH
IMMUNIZATION PROGRAM FUNDING
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.
SECTION 10.31.(b) The Department of Health and
Human Services shall make an interim report on ADAP program
utilization by January 1, 2004, and a final report on ADAP
program utilization by 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 on ADAP. The reports
shall include the following:
(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.
ADAP INCOME ELIGIBILITY
SECTION 10.31A.(a) It is the intent of the General
Assembly to assist citizens of North Carolina who are diagnosed
with HIV/AIDS to live healthy and productive lives. In keeping
with this goal, the Department of Health and Human Services
shall pursue alternatives to the current financing of the AIDS
Drug Assistance Program (ADAP). Notwithstanding Section 10.31
of this act, the Department shall explore various options or
arrangements in order to expand income eligibility for ADAP.
The Department may develop and administer an expanded ADAP that
maximizes existing State funds. The expanded ADAP may include
an increase in current income eligibility levels.
SECTION 10.31A.(b) Nothing in this section shall
be construed as obligating the General Assembly to appropriate
funds for the expanded AIDS Drug Assistance Program or as
entitling any person to receive services under the Program.
SECTION 10.31A.(c ) The Department of Health and
Human Services shall report its progress in complying with this
section and any corresponding findings and recommendations to
the House of Representatives Appropriations Subcommittee on
Health and Human Services, the Senate Appropriations Committee
on Health and Human Services, and the Fiscal Research Division
on or before April 1, 2004.
NEWBORN HEARING SCREENING PROGRAM REPORT
SECTION 10.32. The Department of Health and Human
Services shall report the following information on the newborn
hearing screening program:
(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.(e) The Department of Health and
Human Services shall develop a plan for the future storage or
disposal of X ray files. In doing so, the Division of Public
Health shall consider disposal of the files, archiving the files
by digitizing them, or returning the files to the medical
facility that conducted the X ray. The Department shall report
on its activities under this subsection 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 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."
LOCAL HEALTH DIRECTOR PILOT
SECTION 10.33C. Article 2 of Chapter 130A of the
General Statutes is amended by adding a new section to read:
"§ 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 10.34. No local matching funds may be
required by the Department of Health and Human Services as a
condition of any locality's receiving any State child care funds
appropriated by this act unless federal law requires a match.
This shall not prohibit any locality from spending local funds
for child care services.
CHILD CARE SUBSIDY RATES
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.
CHILD CARE ALLOCATION FORMULA
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.
CHILD CARE REVOLVING LOAN
SECTION 10.37. Notwithstanding any law to the
contrary, funds budgeted for the Child Care Revolving Loan Fund
may be transferred to and invested by the financial institution
contracted to operate the Fund. The principal and any income to
the Fund may be used to make loans, reduce loan interest to
borrowers, serve as collateral for borrowers, pay the
contractor's cost of operating the Fund, or pay the Department's
cost of administering the program.
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.(h) A county may use the county's
allocation of State and federal child care funds to subsidize
child care according to the county's Early Childhood Education
and Development Initiatives Plan as approved by the North
Carolina Partnership for Children, Inc. The use of federal funds
shall be consistent with the appropriate federal regulations.
Child care providers shall, at a minimum, comply with the
applicable requirements for State licensure pursuant to Article
7 of Chapter 110 of the General Statutes.
SECTION 10.38.(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
SECTION 10.39. The Department of Health and Human
Services, Division of Child Development, may evaluate the Early
Childhood Education and Development Initiatives. The evaluation
may include:
(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.
MORE AT FOUR PROGRAM
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
RESIDENTIAL SCHOOLS REPORTING
SECTION 10.41. The Office of Education Services
shall report not later than December 1, 2003, to the Senate
Appropriations Committee on Health and Human Services, the House
of Representatives Appropriations Subcommittee on Health and
Human Services, and the Fiscal Research Division on the
activities of the Eastern North Carolina School for the Deaf at
Wilson, the North Carolina School for the Deaf at Morganton, and
the Governor Morehead School for the Blind. The report shall
include enrollment numbers at the schools, the budgets, and the
academic status of the schools as defined under the ABCs
program.
SUBPART 7. DIVISION OF AGING
SENIOR CENTER OUTREACH
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
SECTION 10.44.(a) It is the intent of the General
Assembly to increase the productivity and enhance the
performance of child support enforcement offices statewide.
SECTION 10.44.(b) The Department of Health and
Human Services shall develop and implement performance standards
for each of the State and county child support enforcement
offices across the State. To develop these performance
standards, the Department of Health and Human Services shall
evaluate other private and public child support models and
national standards as well as other successful collections
models. These performance standards shall include the following:
(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.
SECTION 10.44.(c) The Department of Health and
Human Services shall report on its progress, in compliance with
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 May 1, 2005.
SPECIAL NEEDS ADOPTIONS INCENTIVE FUND
SECTION 10.45. Part 4 of Article 2 of Chapter 108A
of the General Statutes is amended by adding a new section to
read:
"§ 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
SECTION 10.46.(a) The maximum rates for State
participation in the foster care assistance program are
established on a graduated scale as follows:
(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.
SECTION 10.46.(b) The maximum rates for State
participation in the adoption assistance program are established
on a graduated scale as follows:
(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.
SECTION 10.46.(c) In addition to providing board
payments to foster and adoptive families of HIV-infected
children, as prescribed in Section 23.28 of Chapter 324 of the
1995 Session Laws, any additional funds remaining that were
appropriated for this purpose shall be used to provide medical
training in avoiding HIV transmission in the home.
SECTION 10.46.(d) The maximum rates for the
State participation in HIV foster care and adoption assistance
are established on a graduated scale as follows:
(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
SECTION 10.47.(a) Of the funds appropriated to the
Department of Health and Human Services in this act, the sum of
one million one hundred thousand dollars ($1,100,000) shall be
used to support the Special Children Adoption Fund for each year
of the 2003-2005 fiscal biennium. 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. No local match
shall be required as a condition for receipt of these funds. In
accordance with State rules for allowable costs, the Special
Children Adoption Fund may be used for post-adoption services
for families whose income exceed two hundred percent (200%) of
the federal poverty level.
SECTION 10.47.(b) Of the total funds
appropriated for the Special Children Adoption Fund each year,
twenty percent (20%) of the total funds available shall be
reserved for payment to participating private adoption agencies.
If the funds reserved in this subsection for payments to private
agencies have not been spent on or before March 31, 2004, the
Division of Social Services may reallocate those funds, in
accordance with this section, to other participating adoption
agencies.
INTENSIVE FAMILY PRESERVATION SERVICES FUNDING AND
PERFORMANCE ENHANCEMENTS
SECTION 10.48.(a) The Department of Health and
Human Services shall review the Intensive Family Preservation
Services Program (IFPS) to enhance and implement initiatives
that focus on increasing the sustainability and effectiveness of
the Program.
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.(d) The Department shall establish
performance-based funding protocol and shall only provide
funding to those programs and entities providing the required
information specified in subsection (c) of this section. The
amount of funding shall be based on the individual performance
of each program.
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.
TANF STATE PLAN
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.(a) The eligibility of Special
Assistance recipients residing in adult care homes on August 1,
1995, shall not be affected by an income reduction in the
Special Assistance eligibility criteria resulting from adoption
of the Rate Setting Methodology Report and Related Services,
providing these recipients are otherwise eligible. The maximum
monthly rate for these residents in adult care home facilities
shall be one thousand two hundred thirty-one dollars ($1,231)
per month per resident.
SECTION 10.52.(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.
SECTION 10.52.(c) Effective October 1, 2003,
the maximum monthly rate for residents in adult care home
facilities shall be one thousand sixty-six dollars ($1,066) per
month per resident unless adjusted by the Department in
accordance with subsection (f) of this section.
SECTION 10.52.(d) It is the intent of the
General Assembly to protect individuals who meet current
eligibility standards for State/County Special Assistance from
becoming disenfranchised from the program as a result of any
changes proposed in this section. Therefore, subject to any
necessary approvals by the Center for Medicare & Medicaid
Services (CMS):
(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.
SECTION 10.52.(e) The sum of three million one
hundred eighty-nine thousand six hundred seventy-five dollars
($3,189,675) for the 2003-2004 fiscal year and the sum of four
million four hundred thirty-one thousand eight hundred forty-six
dollars ($4,431,846) for the 2004-2005 fiscal year appropriated
to the Department of Health and Human Services shall be
transferred from the Division of Social Services to the Division
of Medical Assistance and used as State match to draw down
federal matching funds to help pay for Medicaid's personal care
services for adult care homes (ACH-PCS) rather than the
State/County Special Assistance Program.
SECTION 10.52.(f) Notwithstanding any other
provision of this section, the Department of Health and Human
Services shall review activities and costs related to the
provision of care in adult care homes and shall determine what
costs may be considered to properly maximize allowable
reimbursement available through Medicaid personal care services
for adult care homes (ACH-PCS) under federal law. As
determined, and with any necessary approval from the Centers for
Medicare and Medicaid Services (CMS), and the approval of the
Office of State Budget and Management, the Department may
transfer necessary funds from the State/County Special
Assistance program within the Division of Social Services to the
Division of Medical Assistance and may use those funds as State
match to draw down federal matching funds to pay for such
activities and costs under Medicaid's personal care services for
adult care homes (ACH-PCS), thus maximizing available federal
funds. The established rate for State/County Special Assistance
set forth in subsection (c) of this section shall be adjusted by
the Department to reflect any transfer of funds from the
Division of Social Services to the Division of Medical
Assistance, and related transfer costs and responsibilities from
State/County Special Assistance to the Medicaid personal care
services for adult care homes (ACH-PCS). Such rate adjustments
to the Special Assistance rate shall be effective with the
effective date of increased reimbursement under ACH-PCS. In no
event shall the reimbursement for services through the ACH-PCS
exceed the average cost of such services as determined by the
Department from review of cost reports as required and submitted
by adult care homes. The Department shall report any transfers
of funds and modifications of rates to the House of
Representatives Appropriations Subcommittee on Health and Human
Services, the Senate Appropriations Committee on Health and
Human Services, and the Fiscal Research Division.
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.
FUNDS FOR FOOD BANKS
SECTION 10.55.(a) Of the funds appropriated to the
Department of Health and Human Services in this act, the sum of
one million dollars ($1,000,000) for the 2003-2004 fiscal year
shall be allocated equally among the six Second Harvest North
Carolina food banks.
SECTION 10.55.(b) Each organization shall report
to the Department of Health and Human Services and the Fiscal
Research Division on the activities performed and the impact on
local communities directly associated with the funds allocated
in subsection (a) of this section by April 1, 2004. Each
organization shall provide to the Department of Health and Human
Services and the Fiscal Research Division a copy of its annual
audited financial statement within 30 days of issuance of the
statement.
CHILD WELFARE SYSTEM PILOTS SYSTEM
SECTION 10.56.(a) The Department of Health and
Human Services, Division of Social Services, shall continue
working with local departments of social services to implement
an alternative response system of child protection in no fewer
than 10 and no more than 33 demonstration areas in this State.
The Division of Social Services may exceed the maximum number of
demonstration areas if a county specifically requests inclusion
and the Division determines that resources are available. The
demonstration projects in place in the 2003-2004 fiscal year
shall continue. The alternative response system shall provide
for a family-centered approach to child protective services
which local departments of social services utilize family
assessment tools and family support principles when responding
to selected reports of suspected child neglect and dependency.
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.
SECTION 10.56.(c) The Department of Health and
Human Services shall proceed to expand this demonstration
project if non-State funds are identified for this purpose.
SECTION 10.56.(d) The Department of Health and
Human Services shall report on the outcome of the evaluation of
the original pilot demonstration areas pursuant to subsection
(b) of this section and the expansion of the demonstration
areas. The Department shall make recommendations for statewide
implementation of an alternative response system to child
protective services. The report shall include any statutory
changes required for full implementation. Any recommendations
for statutory changes contained in the report shall be eligible
for consideration by the 2003 General Assembly in the 2004
Regular Session. The report shall be submitted 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.
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
SECTION 10.58. The Social Services Commission shall
consider adopting rules increasing the rates for adult day
centers and adult day health centers. Any rate increase adopted
by the Social Services Commission for adult day centers and
adult day health centers shall be implemented within existing
funds.
PART X-A. DEPARTMENT OF AGRICULTURE AND CONSUMER
SERVICES
STUDY COMMERCIAL PRODUCTION OF TURTLES
SECTION 10A.1. The Department of Agriculture and
Consumer Services, with the cooperation and assistance of the
Agricultural Research Service at North Carolina State
University, shall investigate the potential for the production
of turtles for food purposes and other commercial purposes that
could support turtle production as an alternative agricultural
product in North Carolina. No later than April 1, 2004, the
Department of Agriculture and Consumer Services shall report its
findings and recommendations, including any legislative
proposals, to the Appropriations Subcommittees on Natural and
Economic Resources in both the Senate and the House of
Representatives and to the Chairs of the Senate Committee on
Agriculture, Environment, and Natural Resources and the House of
Representatives Agriculture Committee.
PART XI. DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES
GRASSROOTS SCIENCE PROGRAM
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
SECTION 11.2. Of the funds appropriated to the
Wildlife Resources Fund in this act, the sum of four hundred
forty-nine thousand dollars ($449,000) for the 2003-2004 fiscal
year and the sum of four hundred forty-nine thousand dollars
($449,000) for the 2004-2005 fiscal year shall be used to
provide the State share necessary to support the beaver damage
control program established in G.S. 113-291.10, provided the sum
of at least twenty-five thousand dollars ($25,000) in federal
funds is available each fiscal year of the biennium to provide
the federal share.
FUNDS FOR CLEANUP OF WARREN COUNTY PCB LANDFILL
SECTION 11.3.(a) Notwithstanding the provisions of
G.S. 143-215.3A, the Department of Environment and Natural
Resources may use up to five hundred thousand dollars ($500,000)
for the 2003-2004 fiscal year from the fees collected for water
quality permits under G.S. 143-215.3D and credited to the Water
Permits Fund if both of the following conditions are satisfied:
(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.
SECTION 11.3.(b) It is the intent of the General
Assembly that the funds authorized under subsection (a) of this
section will be sufficient to complete the detoxification and
remediation of this landfill, based on representations made to
the General Assembly.
COMMERCIAL AND NONCOMMERCIAL UNDERGROUND STORAGE TANK FUNDS
SECTION 11.4.(a) Section 19 of S.L. 1989-652,
Section 67 of S.L. 1991-1044, Section 15(a) and Section 15(b) of
S.L. 1995-377, and Section 1 of S.L. 2001-454 are repealed,
which has the effect of repealing two million six hundred
twenty-five thousand dollars ($2,625,000) in appropriations from
the Commercial Leaking Petroleum Underground Storage Tank
Cleanup Fund to the Department of Environment and Natural
Resources and one million two hundred ninety-five thousand
dollars ($1,295,000) in appropriations from the Noncommercial
Leaking Petroleum Underground Storage Tank Cleanup Fund to the
Department of Environment and Natural Resources.
SECTION 11.4.(b) There is appropriated from the
Commercial Leaking Petroleum Underground Storage Tank Cleanup
Fund to the Department of Environment and Natural Resources the
sum of two million six hundred twenty-five thousand dollars
($2,625,000) for the 2003-2004 fiscal year and the sum of two
million six hundred twenty-five thousand dollars ($2,625,000)
for the 2004-2005 fiscal year to administer the underground
storage tank program under Parts 2A and 2B of Article 21A of
Chapter 143 of the General Statutes.
SECTION 11.4.(c) It is the intent of the General
Assembly that the funds under subsection (b) of this section are
recurring funds.
SECTION 11.4.(d) There is appropriated from the
Noncommercial Leaking Petroleum Underground Storage Tank Cleanup
Fund to the Department of Environment and Natural Resources the
sum of one million two hundred ninety-five thousand dollars
($1,295,000) for the 2003-2004 fiscal year and the sum of one
million two hundred ninety-five thousand dollars ($1,295,000)
for the 2004-2005 fiscal year to administer the underground
storage tank program under Parts 2A and 2B of Article 21A of
Chapter 143 of the General Statutes.
SECTION 11.4.(e) It is the intent of the General
Assembly that the funds under subsection (c) of this section are
recurring funds.
SECTION 11.4.(f) The Office of State Budget and
Management shall certify the appropriations under subsections
(b) and subsection (d) of this section in the budget codes for
the Commercial and Noncommercial Leaking Petroleum Underground
Storage Tank Cleanup Funds and in the General Fund budget code
for the Department of Environment and Natural Resources.
EXPRESS REVIEW PILOT PROGRAM
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."
STUDY/IMPACT OF ACQUISITION OF LAND FOR CONSERVATION PURPOSES
ON LOCAL GOVERNMENT AD VALOREM TAX REVENUES
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.
SECTION 11.7.(b) The Subcommittee shall, by
January 15, 2004, and more frequently as requested report its
findings to the Joint Legislative Commission on Governmental
Operations, the Revenue Laws Study Committee, and the Fiscal
Research Division.
CLEAN WATER MANAGEMENT TRUST FUND APPROPRIATION/FARMLAND
PRESERVATION PROJECTS
SECTION 11.8.(a) Notwithstanding G.S.
143-15.3B(a), for the 2003-2005 fiscal biennium only, the
appropriation to the Clean Water Management Trust Fund for the
2003-2004 fiscal year is only sixty-two million dollars
($62,000,000) as provided by this act and is only sixty-two
million dollars ($62,000,000) for the 2004-2005 fiscal year as
provided by this act. The funds appropriated by this act to the
Clean Water Management Trust Fund shall be used as provided by
G.S. 143-15.3B(b).
SECTION 11.8.(b) Notwithstanding G.S. 113-145.3,
for the 2003-2004 fiscal year only, the Clean Water Management
Trust Fund Board of Trustees may allocate up to four million one
hundred thousand dollars ($4,100,000) to match federal, State,
local, and private farmland preservation and forestland
preservation funds and to acquire permanent conservation
easements on working farms and forests.
STATE MATCH FOR FEDERAL SAFE DRINKING WATER ACT FUNDS
SECTION 11.10. Notwithstanding the provisions of
Chapter 159G of the General Statutes, the Department of
Environment and Natural Resources may transfer and use up to one
million seven hundred thousand dollars ($1,700,000) of the funds
available in the General Water Supply Revolving Loan Account for
the 2003-2004 fiscal year to match the federal grant moneys
authorized by section 1452 of the federal Safe Drinking Water
Act Amendments of 1996 for the 2003-2004 fiscal year. The
General Water Supply Revolving Loan Account is an account under
the Clean Water Revolving Loan and Grant Fund and is established
under G.S. 159G-4. The Clean Water Revolving Loan and Grant
Fund is established by G.S. 159G-5.
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.
COUNCIL OF GOVERNMENT FUNDS
SECTION 12.2.(a) Of the funds appropriated in this
act to the Department of Commerce, eight hundred thirty-two
thousand one hundred fifty dollars ($832,150) for the 2003-2004
fiscal year and eight hundred thirty-two thousand one hundred
fifty dollars ($832,150) for the 2004-2005 fiscal year shall
only be used as provided by this section. Each regional council
of government or lead regional organization is allocated up to
forty-eight thousand nine hundred fifty dollars ($48,950) for
the 2003-2004 and the 2004-2005 fiscal years.
SECTION 12.2.(b) A regional council of
government may use funds appropriated by this section only to
assist local governments in grant applications, economic
development, community development, support of local industrial
development activities, and other activities as deemed
appropriate by the member governments.
SECTION 12.2.(c) Funds appropriated by this
section shall be paid by electronic transfer in two equal
installments, the first no later than September 1, 2003, and the
second subsequent to acceptable submission of the annual report
due to the Joint Legislative Commission on Governmental
Operations and the Fiscal Research Division by January 15, 2005,
as specified in subdivision (e)(2) of this section.
SECTION 12.2.(d) Funds appropriated by this
section shall not be used for payment of dues or assessments by
the member governments and shall not supplant funds appropriated
by the member governments.
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.
TOURISM PROMOTION FUNDS
SECTION 12.3. Funds appropriated in this act to the
Department of Commerce for tourism promotion grants shall be
allocated to counties in an effort to direct funds to counties
most in need. Determinations of which counties are most in need
shall focus on those with the lowest per capita income, highest
unemployment, and slowest population growth in the following
manner:
(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.(c) The Department of Commerce shall
report on or before September 30, 2003, and quarterly thereafter
to the Joint Legislative Commission on Governmental Operations
and to the Fiscal Research Division on the commitment,
allocation, and use of funds allocated from the One North
Carolina - Industrial Recruitment Competitive Fund.
SECTION 12.4.(d) Funds appropriated to the
Department of Commerce for the 2002-2003 fiscal year for the One
North Carolina - Industrial Recruitment Competitive Fund 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 providing financial assistance
to those businesses and 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.(e) This section becomes effective
June 30, 2003.
NORTH CAROLINA EDUCATIONAL DEVELOPMENT
SECTION 12.4A.(a) The General Assembly finds that
institutions of higher education play an essential role in
maintaining and strengthening the economic health of the State.
As our economy evolves from its traditional manufacturing and
agricultural base to a diverse structure, including many
technology, information, and service-based businesses,
innovative educational institutions are essential to providing
appropriate workforce preparation and training to maintain the
State's viability as an attractive location for new and
expanding businesses. Recruiting new educational institutions to
the State to fulfill this role also benefits the State and local
governments by providing new jobs, a stronger tax base, support
for satellite businesses, and investment that will permanently
enhance the infrastructure necessary to support long-term growth
and prosperity. The General Assembly recognizes that the
significant efforts by Johnson and Wales University to establish
and expand in North Carolina are vital to a healthy and growing
State economy. Providing incentives to support these activities
is a critical opportunity for our State to address the possibly
irreversible damage from the current economic recession and
restructuring.
SECTION 12.4A.(b) To carry out the purposes
provided in this section, the Department of Commerce shall
allocate from funds appropriated in the 2001-2003 fiscal
biennium to the One North Carolina - Industrial Recruitment
Competitive Fund one million dollars ($1,000,000) for the
2003-2004 fiscal year to provide financial assistance to Johnson
and Wales University. In addition, funds are appropriated in
this act to the One North Carolina - Industrial Recruitment
Competitive Fund for the 2004-2005 fiscal year. From these
funds, the Department of Commerce shall allocate one million
dollars ($1,000,000) for the 2004-2005 fiscal year to provide
financial assistance to Johnson and Wales University. Funds
allocated under this subsection shall be used only for one or
more of the following capital expenditures:
(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.
INDUSTRIAL DEVELOPMENT FUND
SECTION 12.5.(a) The Department of Commerce shall
reduce the cash balance of the Industrial Development Fund by
one million one hundred sixty-nine thousand four hundred
thirty-eight dollars ($1,169,438).
SECTION 12.5.(b) This section becomes effective
June 30, 2003.
WORKER TRAINING TRUST FUND
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.
SECTION 12.6A.(b) Part 2 of Article 10 of
Chapter 143B of the General Statutes is amended by adding the
following new section to read:
"§ 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.(b) Nothing in this section shall
be deemed to limit or restrict the Commission's authority to
increase fees for purposes other than those indicated in
subsection (a) of this section.
SECTION 12.6C.(c) Unexpended and unencumbered
fees retained by the Industrial Commission under subsection (a)
of this section shall not revert to the General Fund on June 30
of each fiscal year, but shall remain available to the
Commission for the purposes stated in subsection (a) of this
section.
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.
SECTION 12.6C.(e) The Commission may retain
additional fees as authorized by subsection (a) of this section
only in the 2003-2005 fiscal biennium and shall not retain any
additional fees after the 2003-2005 fiscal biennium.
FILM INDUSTRY DEVELOPMENT FUNDS
SECTION 12.6D.(a) Of the funds in the Film Industry
Development Account created in Part 2 of Article 10 of Chapter
143B of the General Statutes, the sum of five hundred thousand
dollars ($500,000) is reallocated to the Wilmington Regional
Film Commission, Inc., a nonprofit corporation, for economic
development services to develop and provide financial assistance
and support necessary to attract to North Carolina a major
television production that meets all of the following
conditions:
(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.
SECTION 12.6D.(b) The Wilmington Regional Film
Commission, Inc., shall administer the funds in accordance with
a contract that conditions expenditure of the funds on
completion of 12 full episodes of the production.
SECTION 12.6D.(c) The General Assembly finds
that this allocation is for the purposes provided in Section
12.6A of this act.
FILM DEVELOPMENT ACCOUNT FUNDS DO NOT REVERT
SECTION 12.6E. Funds appropriated to the Department
of Commerce for the 2002-2003 fiscal year for the Film Industry
Development Account 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 of Commerce
to fund the Film Industry Development Account.
REGIONAL ECONOMIC DEVELOPMENT COMMISSION ALLOCATIONS
SECTION 12.7.(a) Funds appropriated in this act to
the Department of Commerce for regional economic development
commissions shall be allocated to the following Commissions in
accordance with subsection (b) of this section: Western North
Carolina Regional Economic Development Commission, Research
Triangle Regional Commission, Southeastern North Carolina
Regional Economic Development Commission, Piedmont Triad
Partnership, Northeastern North Carolina Regional Economic
Development Commission, Global TransPark Development Commission,
and Carolinas Partnership, Inc.
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
SECTION 12.8.(a) By February 15 of each fiscal
year, beginning in 2004, the seven regional economic development
commissions shall report to the Joint Legislative Commission on
Governmental Operations and the Fiscal Research Division the
following information:
(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.
SECTION 12.8.(b) Each of the commissions shall
provide to the Fiscal Research Division a copy of their
annual audited financial statement within 30 days of
issuance of the statement.
SECTION 12.8.(c) The reporting requirements for
regional economic development commissions, as provided in
subsection (a) of this section, shall be reviewed annually by
the North Carolina Partnership for Economic Development and
recommendations for changes to the reporting requirements shall
be made to the Fiscal Research Division, the President Pro
Tempore of the Senate, and the Speaker of the House of
Representatives.
SECTION 12.8.(d) Regional economic development
commissions shall receive quarterly allocations of the funds
appropriated in this act to the Department of Commerce for
regional economic development commissions.
SECTION 12.8.(e) Regional economic development
commissions shall remain in the Department of Commerce's Budget
Code 14601 with other State-aided nonprofit entities.
SECTION 12.8.(f) The Board Structure of the
Global TransPark Development Commission shall be studied in
accordance with the recommendations found in the UNC
Kenan-Flagler study, to determine if the board structure should
be reconstituted and made similar to the boards of the
Northeastern or Southeastern North Carolina Regional Economic
Development Commissions. In conducting the study, the following
conditions shall be met:
(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.
BIOTECHNOLOGY CENTER
SECTION 12.10.(a) The North Carolina Biotechnology
Center shall recapture funds spent in support of successful
research and development efforts in the for-profit private
sector.
SECTION 12.10.(b) The North Carolina
Biotechnology Center shall provide funding for biotechnology,
biomedical, and related bioscience applications under its
Business and Science Technology Programs.
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.
SECTION 12.10.(d) The North Carolina
Biotechnology Center shall provide a report containing detailed
budget, personnel, and salary information to the Office of State
Budget and Management and to the Fiscal Research Division in the
same manner as State departments and agencies in preparation for
biennium budget requests.
RURAL ECONOMIC DEVELOPMENT CENTER
SECTION 12.11.(a) Of the funds appropriated in this
act to the Rural Economic Development Center, Inc., the sum of
one million eight hundred forty-one thousand six hundred
ninety-seven dollars ($1,881,697) for the 2003-2004 fiscal year
and the sum of one million eight hundred eighty-one thousand six
hundred ninety-seven dollars ($1,881,697) for the 2004-2005
fiscal year shall be allocated as follows:
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.
SECTION 12.11.(b) The Rural Economic Development
Center, Inc., shall provide a report containing detailed budget,
personnel, and salary information to the Office of State Budget
and Management in the same manner as State departments and
agencies in preparation for biennium budget requests.
SECTION 12.11.(c) For purposes of this section,
the term "community development corporation" means a nonprofit
corporation:
(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.
SECTION 12.11.(d) Of the funds appropriated in
this act to the Rural Economic Development Center, Inc., the sum
of two million four hundred fifteen thousand nine hundred ten
dollars ($2,415,910) for the 2003-2004 fiscal year and the sum
of two million four hundred fifteen thousand nine hundred ten
dollars ($2,415,910) for the 2004-2005 fiscal year shall be
allocated as follows:
(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.
SECTION 12.11.(f) No funds appropriated under
this act shall be released to a community development
corporation, as defined in this act, unless the corporation can
demonstrate that there are no outstanding or proposed
assessments or other collection actions against the corporation
for any State or federal taxes, including related penalties,
interest, and fees.
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
SECTION 13.1.(a) The Judicial Department shall
report by September 1, 2003, 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 positions
identified in the Administrative Office of the Courts in order
to implement operational savings.
SECTION 13.1.(b) The Judicial Department, the
Department of Correction, the Department of Crime Control and
Public Safety, the Department of Juvenile Justice and
Delinquency Prevention, and the Department of Justice shall
report quarterly 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 implementation of management
flexibility reserves authorized for each agency in this budget.
The departments shall report to the Joint Legislative Commission
on Governmental Operations before implementing management
flexibility reserves by eliminating positions or abolishing
programs.
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.
DRUG TREATMENT COURT PROGRAM
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.
FEDERAL GRANT FUNDS
SECTION 13.5. The Judicial Department shall use up
to the sum of one million two hundred fifty thousand dollars
($1,250,000) from funds available to the Department to provide
the State match needed in order to receive federal grant funds.
Prior to using funds for this purpose, the Department shall
report to the Chairs of the Senate and House of Representatives
Appropriations Subcommittees on Justice and Public Safety and
the Joint Legislative Commission on Governmental Operations on
the grants to be matched using these funds. The Judicial
Department may also use proceeds from the Court Information
Technology Fund to fulfill prior obligations to criminal justice
information projects receiving federal funds.
PUBLIC DEFENDER STUDY
SECTION 13.6. The Office of Indigent Defense
Services shall study the establishment of additional public
defender districts in the State, identifying the areas of the
State in which savings could be realized by the establishment of
such districts and the projected savings in each area. 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, 2004, on the results of its study.
TRANSFER OF EQUIPMENT AND SUPPLY FUNDS
SECTION 13.7. Funds appropriated to the Judicial
Department in the 2003-2005 biennium for equipment and supplies
shall be certified in a reserve account. The Administrative
Office of the Courts may transfer these funds to the appropriate
programs and between programs as the equipment priorities and
supply consumptions occur during the operating year. These funds
shall not be expended for any other purpose.
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
Martin54 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
Duplin98 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
Fifth19B1(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, Randolph1
Sixth 19C Rowan 1
Fifth19D 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, Yadkin1
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.(c) The superior court judgeship
established for District 19B by subsection (a) of this section
shall be filled by the superior court judge from current
District 19B who resides in Randolph County. That judge's term
expires on December 31, 2008. The successor to that judge shall
be elected in the 2008 general election to serve an eight-year
term.
SECTION 13.14.(d) The superior court judgeship
established for District 19D by subsection (a) of this section
shall be filled by the superior court judge from current
District 19B who resides in Moore County. That judge's term
expires on December 31, 2008. The successor to that judge shall
be elected in the 2008 general election to serve an eight-year
term.
SECTION 13.14.(e) The Judicial Department may
use funds appropriated up to the sum of thirty-five thousand
five hundred forty-nine dollars ($35,549) for the 2003-2004
fiscal year and up to the sum of fifty-three thousand six
hundred ninety-eight dollars ($53,698) for the 2004-2005 fiscal
year to upgrade an existing superior court judgeship to a senior
resident superior court judgeship for District 19D and to add an
official court reporter for District 19D.
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
SECTION 14.2. The Private Protective Services and
Alarm Systems Licensing Boards shall pay the appropriate State
agency for the use of physical facilities and services provided
to those Boards by the State.
CERTAIN LITIGATION EXPENSES TO BE PAID BY CLIENTS
SECTION 14.3. Client departments, agencies, and
boards shall reimburse the Department of Justice for reasonable
court fees, attorney travel and subsistence costs, and other
costs directly related to litigation in which the Department of
Justice is representing the department, agency, or board.
REIMBURSEMENT FOR UNC BOARD OF GOVERNORS LEGAL REPRESENTATION
SECTION 14.4. The Department of Justice shall be
reimbursed by the Board of Governors of The University of North
Carolina for two Attorney III positions to provide legal
representation to The University of North Carolina System.
REPORT ON CRIMINAL RECORDS CHECKS CONDUCTED FOR CONCEALED
HANDGUN PERMITS/STUDY FEE ADJUSTMENT FOR CRIMINAL RECORDS
CHECKS
SECTION 14.5.(a) The Department of Justice shall
report by January 15 each year to the Joint Legislative
Commission on Governmental Operations, the Chairs of the Senate
and House of Representatives Appropriations Committees, and the
Chairs of the Senate and House of Representatives Appropriations
Subcommittees on Justice and Public Safety on the receipts,
costs for, and number of criminal records checks performed in
connection with applications for concealed weapons permits. The
report by the Department of Justice shall also include
information on the number of applications received and approved
for firearms safety courses.
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.
RAPE KITS A PRIORITY
SECTION 14.7. The Department shall develop and
implement a plan to process rape kits as expeditiously as
possible, with a special emphasis on processing kits from cases
that have been outstanding for the longest period of time. In
developing the plan, the Department shall work with local law
enforcement to determine how many untested or unanalyzed rape
kits exist and how many rape kits are collected as evidence each
year.
COMPUTER CRIMES GRANT FUNDS
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
SECTION 15.1. Of the funds appropriated to the
Department of Juvenile Justice and Delinquency Prevention in
this act, not more than four hundred fifty thousand dollars
($450,000) for the 2003-2004 fiscal year and not more than four
hundred fifty thousand dollars ($450,000) for the 2004-2005
fiscal year may be used to administer the S.O.S. Program, to
provide technical assistance to applicants and to local S.O.S.
programs, and to evaluate the local S.O.S. programs. The
Department may contract with appropriate public or nonprofit
agencies to provide the technical assistance, including training
and related services.
JUVENILE CRIME PREVENTION COUNCIL GRANT REPORTING AND
CERTIFICATION
SECTION 15.2.(a) On or before May 1 each year, the
Department of Juvenile Justice and Delinquency Prevention shall
submit to the Joint Legislative Commission on Governmental
Operations and the Appropriations Committees of the Senate and
House of Representatives a list of the recipients of the grants
awarded, or preapproved for award, from funds appropriated to
the Department for local Juvenile Crime Prevention Council
grants. The list shall include for each recipient the amount of
the grant awarded, the membership of the local committee or
council administering the award funds on the local level, and a
short description of the local services, programs, or projects
that will receive funds. The list shall also identify any
programs that received grant funds at one time but for which
funding has been eliminated by the Department of Juvenile
Justice and Delinquency Prevention. A written copy of the list
and other information regarding the projects shall also be sent
to the Fiscal Research Division of the General Assembly.
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.
REPORTS ON CERTAIN PROGRAMS
SECTION 15.3.(a) Project Challenge North Carolina,
Inc., shall report to the Chairs of the Senate and House of
Representatives Appropriations Subcommittees on Justice and
Public Safety by April 1 each year on the operation and the
effectiveness of its program in providing alternative
dispositions and services to juveniles who have been adjudicated
delinquent or undisciplined. The report shall include
information on the source of referrals for juveniles, the types
of offenses committed by juveniles participating in the program,
the amount of time those juveniles spend in the program, the
number of juveniles who successfully complete the program, and
the number of juveniles who commit additional offenses after
completing the program.
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.
SECTION 15.3.(c) Communities in Schools shall
report to the Chairs of the Senate and House of Representatives
Appropriations Subcommittees on Justice and Public Safety, the
Joint Legislative Commission on Governmental Operations, the
Joint Legislative Corrections, Crime Control, and Juvenile
Justice Oversight Committee, and the Joint Legislative Education
Oversight Committee by April 1 each year on the operation and
the effectiveness of its program. The report shall include
information on the number of children served, the number of
volunteers used, the impact on the children who have received
services from Communities in Schools, and the operating budget
of Communities in Schools.
STATE FUNDS MAY BE USED AS FEDERAL MATCHING FUNDS
SECTION 15.4. Funds appropriated in this act to the
Department of Juvenile Justice and Delinquency Prevention for
the 2003-2004 fiscal year may be used as matching funds for the
Juvenile Accountability Incentive Block Grants. If North
Carolina receives Juvenile Accountability Incentive Block
Grants, or a notice of funds to be awarded, the Office of State
Budget and Management and the Governor's Crime Commission shall
consult with the Department of Juvenile Justice and Delinquency
Prevention regarding the criteria for awarding federal funds.
The Office of State Budget and Management, the Governor's Crime
Commission, and the Department of Juvenile Justice and
Delinquency Prevention shall report to the Appropriations
Committees of the Senate and House of Representatives and the
Joint Legislative Commission on Governmental Operations prior to
allocation of the federal funds. The report shall identify the
amount of funds to be received for the 2003-2004 fiscal year,
the amount of funds anticipated for the 2004-2005 fiscal year,
and the allocation of funds by program and purpose.
ANNUAL EVALUATION OF COMMUNITY PROGRAMS
SECTION 15.5. The Department of Juvenile Justice
and Delinquency Prevention shall conduct an evaluation of the
Eckerd and Camp Woodson wilderness camp programs, the teen court
programs, the program that grants funds to the local
organizations of the Boys and Girls Clubs established pursuant
to Section 21.10 of S.L. 1999-237, the Save Our Students
program, the Governor's One-on-One Programs, and multipurpose
group homes. The teen court report shall include statistical
information on the number of juveniles served, the number and
type of offenses considered by teen courts, referral sources for
teen courts, and the number of juveniles that become
court-involved after participation in teen courts. The report
on the Boys and Girls Clubs program shall include information
on:
(1) The expenditure of State appropriations on the
program;
(2) The operations and the effectiveness of the
program; and
(3) The number of juveniles served under the program.
In conducting the evaluation of each of these programs,
the Department shall consider whether participation in each
program results in a reduction of court involvement among
juveniles. The Department shall also identify whether the
programs are achieving the goals and objectives of the Juvenile
Justice Act, S.L. 1998-202. The Department shall report the
results of the evaluation to the Chairs of the House of
Representatives and Senate Appropriations Committees and the
Chairs of the Subcommittees of Justice and Public Safety of the
House of Representatives and Senate Appropriations Committees by
March 1 of each year.
USE OF FUNDS FOR YOUTH DEVELOPMENT CENTER BEDS
SECTION 15.6.(a) The Department of Juvenile Justice
and Delinquency Prevention may use funds available during the
2003-2004 fiscal year to (i) establish or reestablish youth
development center beds, (ii) establish up to 16 new sex
offender beds, and (iii) convert up to 50 beds in one Eckerd
Wilderness Camp for use as a Youth Development Center, as
defined in G.S. 7B-1501. Any conversion shall be effectuated
with existing contract funds. If the Department of Juvenile
Justice and Delinquency Prevention determines it needs
additional youth development center beds during the 2003-2004
fiscal year, it shall consider reestablishing beds at Samarkand
Manor Youth Development Center.
SECTION 15.6.(b) The Department shall report to
the Chairs of the Justice and Public Safety Subcommittees of the
House of Representatives and the Senate and the Joint
Legislative Commission on Governmental Operations and the
Corrections, Crime Control, and Juvenile Justice Oversight
Committee prior to:
(1) Converting any Eckerd Wilderness Camp beds to
secure confinement beds during the 2003-2004 fiscal
year;
(2) Establishing bed capacity greater than 740 total
beds, including beds converted at Eckerd Wilderness
Camps, during the 2003-2004 fiscal year; or
(3) Establishing new sex offender beds.
The report shall include the sources of funding for any
additional beds.
PLANNING FOR NEW YOUTH DEVELOPMENT CENTERS
SECTION 15.7.(a) The Department of Juvenile Justice
and Delinquency Prevention and the Department of Administration,
State Construction Office, shall continue the planning and
design of new youth development centers with up to 500 total
beds. It is the intent that the design of these facilities
ensure improved security, programming, and staffing
efficiencies.
The Department of Juvenile Justice and Delinquency
Prevention shall provide a quarterly report to the Joint
Legislative Corrections, Crime Control, and Juvenile Justice
Oversight Committee and to the Chairs of the House of
Representatives Appropriations Subcommittee on Justice and
Public Safety and the Senate Appropriations Committee on Justice
and Public Safety on the status of the planning and design of
the new facilities and preliminary planning for site work. The
first status report shall address (i) the number of youth
development centers to be designed, (ii) the number of beds at
each facility, (iii) the rationale for the number of beds to be
built at each facility, and (iv) an analysis of all proposed
sites for the facilities. The Department shall assess all
existing youth development center sites in this analysis and
discuss any alternative sites.
At the completion of the predesign and schematic design
development phase of the plan for the new youth development
centers, or no later than April 15, 2004, the Department shall
consult with the Joint Legislative Corrections, Crime Control,
and Juvenile Justice Oversight Committee and with the Chairs of
the House of Representatives Appropriations Subcommittee on
Justice and Public Safety and the Senate Appropriations
Committee on Justice and Public Safety on:
(1) Whether the plan and design meet the mandate of
ensuring effective security and programming while
improving staff efficiencies.
(2) The Department's long-range plan for closing other
youth development centers or individual cottages at
selected youth development centers or revising the
mission or objective of individual youth
development centers.
(3) The anticipated total cost of each youth
development center proposed, including the cost per
bed and per square foot, as well as the rationale
for the proposed projected cost.
(4) Final site recommendations.
The Department of Administration, State Construction
Office, shall assist the Department of Juvenile Justice and
Delinquency Prevention with all reports and consultations
required by this subsection.
SECTION 15.7.(b) Effective July 1, 2003, the
Department of Juvenile Justice and Delinquency Prevention shall
transfer to the Department of Administration, State Construction
Office, the sum of the one million six hundred forty-one
thousand five hundred eighty-nine dollars ($1,641,589), minus
the amount paid to the design firm as of June 30, 2003. These
funds shall be used for the planning and design of youth
development centers.
OPERATION OF BUNCOMBE YOUTH DETENTION CENTER
SECTION 15.8. The Department of Juvenile Justice
and Delinquency Prevention shall continue to operate the
Buncombe Youth Detention Center at its current site during the
2003-2004 fiscal year. To the extent practicable during the
2003-2004 fiscal year, the Department shall operate the Buncombe
Youth Detention Center at the same average population and
staffing levels and at the same budget as the 2002-2003 fiscal
year.
JUVENILE JUSTICE COMPLIANCE WITH AUDIT REPORT
SECTION 15.9. The Department of Juvenile Justice
and Delinquency Prevention shall develop and implement a plan to
address the findings and recommendations in the performance
audit of the youth development centers and juvenile detention
centers within the Department of Juvenile Justice and
Delinquency Prevention, dated May 2003, by the Office of the
State Auditor. The plan shall include proposed changes in
organization and management, policies and procedures, and
programs in order to address problems identified in the report.
The plan shall also identify and document any funding needs for
consideration by the 2004 Regular Session of the 2003 General
Assembly.
The Department of Juvenile Justice and Delinquency
Prevention shall report to the Chairs of the Senate and House of
Representatives Appropriations Committees and the Joint
Legislative Corrections, Crime Control, and Juvenile Justice
Oversight Committee on the progress of the development of the
plan and initial steps taken to address the issues raised in the
audit report by November 1, 2003, and shall report on the final
plan by March 1, 2004.
SAMARKAND TIMBER SALE
SECTION 15.10.(a) The Department of Juvenile
Justice and Delinquency Prevention shall harvest and sell a
portion of the timber on the real property at Samarkand Youth
Academy. Notwithstanding Chapter 146 of the General Statutes,
G.S. 66-58, and any other provision of law, the net proceeds
derived from the sale of the timber in an amount not to exceed
two hundred fifty thousand dollars ($250,000) shall be deposited
with the State Treasurer in a capital improvement and repair and
renovation account to the credit of the Department of Juvenile
Justice and Delinquency Prevention. The Department shall use
the funds for major repair to the streets and parking lots at
the Samarkand Youth Academy and for additional street lighting
and repairs of buildings at the Academy.
SECTION 15.10.(b) The Department of Juvenile
Justice and Delinquency Prevention shall report to the Joint
Legislative Commission on Governmental Operations by December 1,
2003, on the progress of the harvest and sale of the timber at
Samarkand Youth Academy pursuant to subsection (a) of this
section.
SECTION 15.10.(c) The remainder of the net
proceeds from the sale of the timber at Samarkand Youth Academy,
if any, shall revert to the General Fund.
PART XVI. DEPARTMENT OF CORRECTION
FEDERAL GRANT REPORTING
SECTION 16.1. The Department of Correction, the
Department of Justice, the Department of Crime Control and
Public Safety, the Judicial Department, and the Department of
Juvenile Justice and Delinquency Prevention shall report by May
1 of each year to the Joint Legislative Commission on
Governmental Operations, the Chairs of the Senate and House of
Representatives Appropriations Committees, and the Chairs of the
Senate and House of Representatives Appropriations Subcommittees
on Justice and Public Safety on federal grant funds received or
preapproved for receipt by those departments. The report shall
include information on the amount of grant funds received or
preapproved for receipt by each department, the use of the
funds, the State match expended to receive the funds, and the
period to be covered by each grant. If the department intends
to continue the program beyond the end of the grant period, the
department shall report on the proposed method for continuing
the funding of the program at the end of the grant period. Each
department shall also report on any information it may have
indicating that the State will be requested to provide future
funding for a program presently supported by a local grant.
REIMBURSE COUNTIES FOR HOUSING AND EXTRAORDINARY MEDICAL
COSTS FOR INMATES, PAROLEES, AND POST-RELEASE SUPERVISEES
AWAITING TRANSFER TO STATE PRISON SYSTEM
SECTION 16.2. The Department of Correction may use
funds available to the Department for the 2003-2005 biennium to
pay the sum of forty dollars ($40.00) per day as reimbursement
to counties for the cost of housing convicted inmates, parolees,
and post-release supervisees awaiting transfer to the State
prison system, as provided in G.S. 148-29. The Department shall
report quarterly to the Joint Legislative Commission on
Governmental Operations, the Joint Legislative Corrections,
Crime Control, and Juvenile Justice Oversight Committee, 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 expenditure of funds to reimburse counties
for prisoners awaiting transfer and on its progress in reducing
the jail backlog.
SHIFT PAY FOR SECURITY STAFF
SECTION 16.3. The Department of Correction may use
funds available for the 2003-2004 fiscal year for the payment to
security staff of special supplemental weekend shift premium pay
that exceeds standard weekend shift pay by up to ten percent
(10%). The Department shall also continue to take steps to hold
down the cost of shift pay by converting prisons from three
eight-hour shifts to two 12-hour shifts whenever practical.
The Department of Correction shall report to the Senate
and House of Representatives Appropriations Subcommittees on
Justice and Public Safety by April 1, 2004, on its progress in
converting prison work shifts from eight hours to 12 hours. The
report shall include information on savings generated to date
and potential future savings, as well as any changes in employee
morale and leave usage, as a result of converting to 12-hour
shifts.
DEPARTMENT OF CORRECTION SECURITY STAFFING FORMULAS
SECTION 16.4.(a) The Department of Correction shall
conduct annual security staffing postaudits of each prison.
SECTION 16.4.(b) The Department of Correction
shall annually update the security staffing relief formula. Each
update shall include a review of all annual training
requirements for security staff to determine which of these
requirements should be mandatory and the appropriate frequency
of the training.
SECTION 16.4.(c) The Department of Correction
shall report on its progress in implementing the staffing
recommendations of the National Institute of Corrections to the
Senate and House of Representatives Appropriations Subcommittees
on Justice and Public Safety by February 1, 2004. The report
shall include a status report on the implementation of a
centralized postaudit control system and the automation of leave
records.
USE OF CLOSED PRISON FACILITIES
SECTION 16.5. In conjunction with the closing of
prison facilities, including small expensive prison units
recommended for consolidation by the Government Performance
Audit Committee, the Department of Correction shall consult with
the county or municipality in which the unit is located, with
the elected State and local officials, and with State agencies
about the possibility of converting that unit to other use. The
Department may also consult with any private for-profit or
nonprofit firm about the possibility of converting the unit to
other use. In developing a proposal for future use of each unit,
the Department shall give priority to converting the unit to
other criminal justice use. Consistent with existing law and the
future needs of the Department of Correction, the State may
provide for the transfer or the lease of any of these units to
counties, municipalities, State agencies, or private firms
wishing to convert them to other use. The Department of
Correction may also consider converting some of the units
recommended for closing from one security custody level to
another, where that conversion would be cost-effective. A prison
unit under lease to a county pursuant to the provisions of this
section for use as a jail is exempt for the period of the lease
from any of the minimum standards adopted by the Secretary of
Health and Human Services pursuant to G.S. 153A-221 for the
housing of adult prisoners that would subject the unit to
greater standards than those required of a unit of the State
prison system.
Prior to any transfer or lease of these units, the
Department of Correction shall report on the terms of the
proposed transfer or lease to the Joint Legislative Commission
on Governmental Operations and the Joint Legislative
Corrections, Crime Control, and Juvenile Justice Oversight
Committee. The Department of Correction shall also provide
annual summary reports to the Joint Legislative Commission on
Governmental Operations and the Joint Legislative Corrections,
Crime Control, and Juvenile Justice Oversight Committee on the
conversion of these units to other use and on all leases or
transfers entered into pursuant to this section.
INMATE COSTS/MEDICAL BUDGET FOR PRESCRIPTION DRUGS AND INMATE
CLOTHING AND LAUNDRY SERVICES
SECTION 16.6.(a) If the cost of providing food and
health care to inmates housed in the Division of Prisons is
anticipated to exceed the continuation budget amounts provided
for that purpose in this act, the Department of Correction shall
report the reasons for the anticipated cost increase and the
source of funds the Department intends to use to cover those
additional needs to the Joint Legislative Commission on
Governmental Operations, the Chairs of the Senate and House of
Representatives Appropriations Committees, and the Chairs of the
Senate and House of Representatives Appropriations Subcommittees
on Justice and Public Safety.
SECTION 16.6.(b) Notwithstanding the provisions
of G.S. 143-23(a2), the Department of Correction may use funds
available during the 2003-2005 biennium for the purchase of
prescription drugs for inmates if expenditures are projected to
exceed the Department's inmate medical continuation budget for
prescription drugs. The Department shall consult with the Joint
Legislative Commission on Governmental Operations prior to
exceeding the continuation budget amount.
SECTION 16.6.(c) Notwithstanding the provisions
of G.S. 143-23(a2), the Department of Correction may use funds
available during the 2003-2004 fiscal year for the purchase of
clothing and laundry services for inmates if expenditures are
projected to exceed the Department's budget for clothing and
laundry services. The Department shall consult with the Joint
Legislative Commission on Governmental Operations prior to
exceeding the continuation budget amount.
MOBILE MEDICAL OPERATING ROOM
SECTION 16.7. The Department of Correction shall
continue the contract for a mobile medical operating room at
Central Prison for the 2003-2004 fiscal year at a reduced fixed
rate that more clearly reflects the usage. However, the
Department shall use the mobile unit for additional procedures,
as authorized by the terms of the agreement, whenever the
Department's Utilization Review Team determines that (i) a
specific procedure can be performed at a cost below that charged
by a public or private hospital; and (ii) there is no compelling
medical reason for performing the procedure in a hospital
instead of using the mobile medical unit.
The Department shall also study the use of this mobile
operating room and report by April 1, 2004, to the Chairs of the
Senate and House of Representatives Appropriations Subcommittees
on Justice and Public Safety. The report shall recommend whether
the mobile unit should be continued, eliminated, or expanded in
terms of capacity of the current unit and the potential for
establishing an additional mobile unit. The report shall also
include information on the number and type of procedures
performed over and above the fixed-rate contract and the savings
generated.
CONVERSION OF CONTRACTED MEDICAL POSITIONS
SECTION 16.8.(a) The Department of Correction may
convert contract medical positions to permanent State medical
positions at individual correctional facilities if the
Department can document that the total savings generated will
exceed the total cost of the new positions for each facility.
Where practical, the Department shall convert contract positions
to permanent positions by using existing vacancies in medical
positions.
SECTION 16.8.(b) The Department of Correction
shall report by April 1, 2004, 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 all conversions made pursuant to
this section, by type of position and location, and on the
savings generated at each correctional facility.
LIMIT USE OF OPERATIONAL FUNDS
SECTION 16.9. Funds appropriated in this act to the
Department of Correction for operational costs for additional
facilities shall be used for personnel and operating expenses
set forth in the budget approved by the General Assembly in this
act. These funds shall not be expended for any other purpose,
except as provided for in this act, and shall not be expended
for additional prison personnel positions until the new
facilities are within 120 days of projected completion, except
for certain management, security, and support positions
necessary to prepare the facility for opening, as authorized in
the budget approved by the General Assembly.
FEDERAL GRANT MATCHING FUNDS
SECTION 16.10. Notwithstanding the provisions of
G.S. 148-2, the Department of Correction may use up to the sum
of nine hundred thousand dollars ($900,000) from funds available
to the Department to provide the State match needed in order to
receive federal grant funds. Prior to using funds for this
purpose, the Department shall report to the Chairs of the Senate
and House of Representatives Appropriations Subcommittees on
Justice and Public Safety and the Joint Legislative Commission
on Governmental Operations on the grants to be matched using
these funds.
COMPUTER/DATA PROCESSING SERVICES FUNDS
SECTION 16.11. Notwithstanding the provisions of
G.S. 143-23(a2), the Department of Correction may use funds
available during the 2003-2005 biennium for expenses for
computer/data processing services if expenditures exceed the
Department's continuation budget amount for those services. The
Department shall report to the Joint Legislative Commission on
Governmental Operations prior to exceeding the continuation
budget amount.
MEDIUM CUSTODY ROAD CREW COMPENSATION/COMMUNITY WORK CREWS
SECTION 16.12.(a) Of funds appropriated to the
Department of Transportation by this act, the sum of ten million
dollars ($10,000,000) per year shall be transferred by the
Department of Transportation to the Department of Correction
during the 2003-2005 biennium for the actual costs of
highway-related labor performed by medium-custody prisoners, as
authorized by G.S. 148-26.5. This transfer shall be made
quarterly in the amount of two million five hundred thousand
dollars ($2,500,000). The Department of Transportation may use
funds appropriated by this act to pay an additional amount
exceeding the ten million dollars ($10,000,000), but those
payments shall be subject to negotiations among the Department
of Transportation, the Department of Correction, and the Office
of State Budget and Management prior to payment by the
Department of Transportation.
SECTION 16.12.(b) The Department of Correction
may use up to 39 work crews for Department of Transportation
litter control projects. The Department of Transportation shall
transfer at least one million three hundred thousand dollars
($1,300,000) per year from the Highway Fund to the Department of
Correction during the 2003-2005 biennium to cover the cost of
those work crews. Should the two departments determine that the
actual cost of operating 39 work crews exceeds that amount, the
Department of Transportation shall transfer an additional amount
as agreed upon by the two departments and the Office of State
Budget and Management.
ENERGY COMMITTED TO OFFENDERS/CONTRACT AND REPORT
SECTION 16.13. The Department of Correction may
continue to contract with Energy Committed To Offenders, Inc.,
for the purchase of prison beds for minimum security female
inmates during the 2003-2005 biennium. Energy Committed To
Offenders, Inc., shall report by February 1 of each year to the
Joint Legislative Commission on Governmental Operations on the
annual cost per inmate and the average daily inmate population
compared to bed capacity using the same methodology as that used
by the Department of Correction. Energy Committed To Offenders,
Inc., shall also provide information on the rearrest rate and
the return-to-prison rate for inmates participating in the
program who are paroled or released from prison.
ELECTRONIC MONITORING COSTS
SECTION 16.14. The Department of Correction shall
issue a Request for Information to determine the interest and
qualifications of private vendors to provide electronic
monitoring services for the Department and the estimated costs
of outsourcing those services. The Department of Correction
shall report by March 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 results of the
Request for Information and on efforts to increase the use of
electronic monitoring of sentenced offenders in the community as
an alternative to the incarceration of probation violators. The
report shall also document the geographical distribution of
electronic monitoring use compared to other intermediate
sanctions. The Department shall also analyze the reasons for the
underutilization of the electronic monitoring program and
include its findings in the report.
COLLECTION OF OFFENDER FEES
SECTION 16.15. The Department of Correction and the
Judicial Department shall report by April 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 success of their efforts to improve the
collection rate of offender fees for probationers and for
nonprobationers sentenced to community service and on any
recommendations for statutory or procedural changes that will
improve the collection of financial obligations from offenders.
The report shall include a comparison of the percentage
of offender fees collected in the most recent year compared to
prior years, including the percentage of offenders who were
ordered to pay fees and the percentage of offenders who actually
paid those fees. The report shall also include the total
offender fees collected, in dollars and as a percentage of the
fees ordered, and the fees that could have been ordered based on
the sentence and conditions imposed by the judge. If any of this
information cannot be collected, the report shall include a
description of the data collection issues and a plan for
addressing those issues.
CRIMINAL JUSTICE PARTNERSHIP PROGRAM
SECTION 16.16.(a) It is the intent of the General
Assembly that State Criminal Justice Partnership Program funds
not be used to fund case manager positions when those services
can be reasonably provided by Division of Community Corrections
personnel or by the Treatment Alternatives to Street Crime
(TASC) Program in the Department of Health and Human Services.
SECTION 16.16.(b) Notwithstanding the provisions
of G.S. 143B-273.15 specifying that grants to participating
counties are for the full fiscal year and that unobligated funds
are returned to the State-County Criminal Justice Partnership
Account at the end of the grant period, the Department of
Correction may reallocate unspent or unclaimed funds distributed
to counties participating in the State-County Criminal Justice
Partnership Program in an effort to maintain the level of
services realized in previous fiscal years.
SECTION 16.16.(c) The Department of Correction
may not deny funds to a county to support both a residential
program and a day reporting center if the Department of
Correction determines that the county has a demonstrated need
and a fully developed plan for each type of sanction.
SECTION 16.16.(d) The Department of Correction
shall report by February 1 of each year to the Chairs of the
Senate and House of Representatives Appropriations Committees,
the Senate and House of Representatives Appropriations
Subcommittees on Justice and Public Safety, and the Joint
Legislative Corrections, Crime Control, and Juvenile Justice
Oversight Committee on the status of the State-County Criminal
Justice Partnership Program. The report shall include the
following information:
(1) The amount of funds carried over from the prior
fiscal year;
(2) The dollar amount and purpose of grants awarded to
counties as discretionary grants for the current
fiscal year;
(3) Any counties the Department anticipates will submit
requests for new implementation grants;
(4) An update on efforts to ensure that all counties
make use of the electronic reporting system,
including the number of counties submitting
offender participation data via the system;
(5) An analysis of offender participation data
received, including data on each program's
utilization and capacity; and
(6) An analysis of comparable programs, prepared by the
Research and Planning Division of the Department of
Correction, and a summary of the reports prepared
by county Criminal Justice Partnerships Advisory
Boards.
REPORTS ON NONPROFIT PROGRAMS
SECTION 16.17.(a) Funds appropriated in this act to
the Department of Correction to support the programs of
Harriet's House may be used for program operating costs, the
purchase of equipment, and the rental of real property.
Harriet's House shall report by February 1 of each year to the
Joint Legislative Commission on Governmental Operations on the
expenditure of State appropriations and on the effectiveness of
the program, including information on the number of clients
served and the number of clients who successfully complete the
Harriet's House program.
SECTION 16.17.(b) Summit House shall report by
February 1 of each year to the Joint Legislative Commission on
Governmental Operations on the expenditure of State
appropriations and on the effectiveness of the program,
including information on the number of clients served, the
number of clients who have had their probation revoked, and the
number of clients who successfully complete the program while
housed at Summit House, Inc.
SECTION 16.17.(c) Women at Risk shall report by
February 1 of each year to the Joint Legislative Commission on
Governmental Operations on the expenditure of State funds and on
the effectiveness of the program, including information on the
number of clients served, the number of clients who have had
their probation revoked, and the number of clients who have
successfully completed the program.
PROBATION AND PAROLE CASELOADS
SECTION 16.18.(a) The Department of Correction
shall report by March 1 of each year to the Chairs of the Senate
and House of Representatives Appropriations Subcommittees on
Justice and Public Safety and the Joint Legislative Corrections,
Crime Control, and Juvenile Justice Oversight Committee on
caseload averages for probation and parole officers. The report
shall include:
(1) Data on current caseload averages for Probation
Parole Officer I, Probation Parole Officer II, and
Probation Parole Officer III positions;
(2) An analysis of the optimal caseloads for these
officer classifications; and
(3) An assessment of the role of surveillance officers.
SECTION 16.18.(b) The Department of Correction
shall conduct a study of probation/parole officer workload at
least biannually, the first such study to be completed during
the 2003-2004 fiscal year. The initial study shall be conducted
jointly by Department staff and a consultant, external to the
Department, and shall include analysis of the type of offenders
supervised, the distribution of the probation/parole officers'
time by type of activity, the caseload carried by the officers,
and comparisons to practices in other states. The study shall be
used to determine whether the caseload goals established by the
Structured Sentencing Act are still appropriate, based on the
nature of the offenders supervised and the time required to
supervise those offenders.
SECTION 16.18.(c) The Department of Correction
shall report the results of the initial study and
recommendations for any adjustments to caseload goals to the
Senate and House of Representatives Appropriations Subcommittees
on Justice and Public Safety by April 1, 2004.
COMMUNITY SERVICE WORK PROGRAM
SECTION 16.19. The Department of Correction shall
report to the Chairs of the Senate and House of Representatives
Appropriations Subcommittees on Justice and Public Safety by May
1, 2004, on the integration of the Community Service Work
Program into the Division of Community Corrections, including
the Department's ability to monitor the collection of offender
payments from unsupervised offenders sentenced to community
service. The Department shall also report to the Chairs of the
Senate and House of Representatives Appropriations Subcommittees
on Justice and Public Safety by May 1, 2004, and by February 1
annually beginning in 2005, on the average caseloads of
Community Service Work Program coordinators, by district,
division, and statewide. The report shall also include the money
collected, the type and value of the work performed, and the
number of offenders in the Community Service Work Program, by
type of referral (i.e. parole, supervised probation,
unsupervised probation or community punishment, DWI, or any
other agency referrals).
REPORT ON INMATES ELIGIBLE FOR PAROLE
SECTION 16.20. The Post-Release Supervision and
Parole Commission shall report by January 15 and July 15 of each
year to the Senate and House of Representatives Appropriations
Subcommittees on Justice and Public Safety and the Joint
Legislative Corrections, Crime Control, and Juvenile Justice
Oversight Committee on inmates eligible for parole. These
reports shall include at least the following:
(1) The total number of Fair Sentencing and Pre-Fair
Sentencing inmates that were parole-eligible during
the current fiscal year and the total number of
those inmates that were paroled. The report should
group these inmates by offense type, custody
classification, and type of parole. The report
should also include a more specific analysis of
those inmates who were parole-eligible and assigned
to minimum custody classification but not released;
(2) The average time served, by offense class, of Fair
Sentencing and Pre-Fair Sentencing inmates compared
to inmates sentenced under Structured Sentencing;
and
(3) The projected number of parole-eligible inmates to
be paroled or released by the end of the 2003-2004
fiscal year and by the end of the 2004-2005 fiscal
year.
POST-RELEASE SUPERVISION AND PAROLE COMMISSION/REPORT ON
STAFFING REORGANIZATION AND REDUCTION
SECTION 16.21. The Post-Release Supervision and
Parole Commission shall report by October 1, 2003, to the Chairs
of the Senate and House of Representatives Appropriations
Subcommittees on Justice and Public Safety on a plan for
restructuring the organization and operation of the Commission
and implementing staff reductions to reflect both declines and
changes in workload.
HOUSING OF INMATES
SECTION 16.22. The Department of Correction shall
develop an operating plan for generating the appropriate mix of
close, medium, and minimum custody beds. The plan shall, at a
minimum, address the future construction of new beds, including
expansion of current prisons, conversion of current prisons from
one custody level to another, and the housing of two inmates per
cell. The starting point for this plan shall be the Sentencing
and Policy Advisory Commission inmate population projections and
the Department of Correction's custody population projection
model.
The portion of the plan regarding the housing of two
inmates per cell shall include a facility-by-facility assessment
of the pros and cons of housing inmates in that manner. The
Department of Correction shall identify those facilities that
would be most conducive to housing two inmates per cell. The
Department of Correction should focus its review particularly on
the potential to house two inmates per cell at Pamlico, Mountain
View, Eastern, Southern, Pasquotank, and Marion. The Department
should also review the potential to house two inmates per cell
in at least one of any new prisons authorized by the 2003
General Assembly.
The overall operating plan should address budgetary,
security, and other operational needs and, in particular, should
note how the plan adheres to or deviates from the Department of
Correction's custody population projection model.
The Department of Correction shall report by February 1,
2004, to the Joint Legislative Corrections, Crime Control, and
Juvenile Justice Oversight Committee, the Chairs of the Senate
and House Appropriations Committees, and the Chairs of the
Senate and House Appropriations Subcommittees on Justice and
Public Safety on the plan developed pursuant to this section.
PART XVII. DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY
TRANSFER CJIN TO THE DEPARTMENT OF CRIME CONTROL AND PUBLIC
SAFETY
SECTION 17.1.(a) G.S. 143-661(a) reads as
rewritten:
"(a)The Criminal Justice Information Network Governing Board
is established within the Department of Justice, State
Bureau of Investigation, Crime Control and Public
Safety, to operate the State's Criminal Justice Information
Network, the purpose of which shall be to provide the
governmental and technical information systems infrastructure
necessary for accomplishing State and local governmental public
safety and justice functions in the most effective manner by
appropriately and efficiently sharing criminal justice and
juvenile justice information among law enforcement, judicial,
and corrections agencies. The Board is established within the
Department of Justice, State Bureau of Investigation,
Crime Control and Public Safety, for
organizational and budgetary purposes only and the Board shall
exercise all of its statutory powers in this Article independent
of control by the Department of
Justice.Crime Control and Public
Safety."
SECTION 17.1.(b) G.S. 143-664(b) reads as
rewritten:
"(b)Pending permanent staffing, the Department shall provide
the Board with professional and clerical staff and any
additional support the Board needs to fulfill its mandate. The
Board may meet in an area provided by the Department of
Justice Crime Control and Public Safety
and the Board's staff shall use space provided by the
Department."
SECTION 17.1.(c) The Criminal Justice
Information Network as provided in Article 69 of Chapter 143 of
the General Statutes is hereby transferred by a Type II
transfer, as defined in G.S. 143A-6, to the Department of Crime
Control and Public Safety.
THE JUVENILE JUSTICE INFORMATION SYSTEM
SECTION 17.2.(a) G.S. 143B-516(b)(13) reads as
rewritten:
"(13) Assist the Criminal Justice
Information Network Governing Board with
administering Develop and administer
a comprehensive juvenile justice information
system to collect data and information about
delinquent juveniles for the purpose of developing
treatment and intervention plans and allowing
reliable assessment and evaluation of the
effectiveness of rehabilitative and preventive
services provided to delinquent juveniles."
SECTION 17.2.(b) G.S. 143-663(a)(1) reads as
rewritten:
"(1) To establish and operate the Network as an
integrated system of State and local government
components for effectively and efficiently storing,
communicating, and using criminal justice
information at the State and local levels
throughout North Carolina's law enforcement,
judicial, juvenile justice, and corrections
agencies, with the components of the Network to
include electronic devices, programs, data, and
governance and to set the Network's policies and
procedures."
ANNUAL EVALUATION OF THE TARHEEL CHALLENGE PROGRAM
SECTION 17.3. The Department of Crime Control and
Public Safety shall report 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 April 1 of each
year on the operations and effectiveness of the National Guard
Tarheel Challenge Program. The report should evaluate the
program's effectiveness as an intervention method for preventing
juveniles from becoming undisciplined or delinquent. The report
shall also evaluate the Program's role in improving individual
skills and employment potential for participants and shall
include:
(1) The source of referrals for individuals
participating in the Program;
(2) The summary of types of actions or offenses
committed by the participants of the Program;
(3) An analysis outlining the cost of providing
services for each participant, including a
breakdown of all expenditures related to the
administration and operation of the Program and the
education and treatment of the Program
participants;
(4) The number of individuals who successfully complete
the Program; and
(5) The number of participants who commit offenses
after completing the Program.
LEGISLATIVE REVIEW OF DRUG LAW ENFORCEMENT AND OTHER GRANTS
SECTION 17.4.(a) Section 1303(4) of the Omnibus
Crime Control and Safe Streets Act of 1968 provides that the
State application for Drug Law Enforcement Grants is subject to
review by the State legislature or its designated body.
Therefore, the Governor's Crime Commission of the Department of
Crime Control and Public Safety shall report on the State
application for grants under the State and Local Law Enforcement
Assistance Act of 1986, Part M of the Omnibus Crime Control and
Safe Streets Act of 1968 as enacted by Subtitle K of P.L.
99-570, the Anti-Drug Abuse Act of 1986, to the Senate and House
of Representatives Appropriations Subcommittees on Justice and
Public Safety when the General Assembly is in session. When the
General Assembly is not in session, the Governor's Crime
Commission shall report on the State application to the Joint
Legislative Commission on Governmental Operations.
SECTION 17.4.(b) Unless a State statute provides
a different forum for review, when a federal law or regulation
provides that an individual State application for a grant shall
be reviewed by the State legislature or its designated body and
at the time of the review the General Assembly is not in
session, that application shall be reviewed by the Joint
Legislative Commission on Governmental Operations.
VICTIMS ASSISTANCE NETWORK REPORT
SECTION 17.5. The Department of Crime Control and
Public Safety shall report on the expenditure of funds allocated
pursuant to this section for the Victims Assistance Network.
The Department shall also report on the Network's efforts to
gather data on crime victims and their needs, act as a
clearinghouse for crime victims' services, provide an automated
crime victims' bulletin board for subscribers, coordinate and
support activities of other crime victims' advocacy groups,
identify the training needs of crime victims' services providers
and criminal justice personnel, and coordinate training for
these personnel. The Department shall submit its report to the
Chairs of the Appropriations Subcommittees on Justice and Public
Safety of the Senate and House of Representatives by December 1
of each year of the biennium.
ALE AGENTS SUBJECT TO STATE PERSONNEL ACT
SECTION 17.6. Chapter 126 of the General Statutes,
the State Personnel System, applies to all Alcohol Law
Enforcement agents of the Department of Crime Control and Public
Safety. The Office of State Personnel shall study salary
classifications of Alcohol Law Enforcement agents to determine
the appropriate classifications and salary ranges for those
agents and shall report the results of the study, including any
recommendations or legislative proposals, to the Chairs of the
Senate and House of Representatives Subcommittees on Justice and
Public Safety.
PART XVIII. DEPARTMENT OF ADMINISTRATION
AGENCIES TO USE MAIL SERVICE CENTER
SECTION 18.1. G.S. 143-341(8)g. reads as rewritten:
"§ 143-341. Powers and duties of Department.
The Department of Administration has the following powers
and duties:
...
(8) General Services:
...
g. To establish and operate a central
mailing system mail service
center for that shall
be used by all State agencies,
agencies other than the Employment
Security Commission, and in connection
therewith and in the discretion of the
Secretary, to make application for and
procure a post-office substation for that
purpose, and to do all things
necessary in connection with the maintenance
of the central mailing system.
mail service center. The
Secretary may shall
allocate and charge against the respective
departments and agencies their proportionate
parts of the cost of the maintenance of the
central mailing system.
mail service center. The
Secretary shall develop a plan for the
efficient operation of the center that meets
the needs of State agencies
andagencies, ensures timely
delivery of mail, and shall present
that plan to the Office of State Budget and
Management and the General Assembly no later
than the convening date of the 2003 General
Assembly.mail, and ensures no loss
of federal funds."
STUDY OF ADVOCACY PROGRAMS IN THE DEPARTMENT OF
ADMINISTRATION
SECTION 18.2. The Secretary of the Department of
Administration, in collaboration with appropriate entities which
concentrate on public policy and business management, shall
study the functions of the advocacy programs that are housed in
the Department of Administration to determine the appropriate
organizational placement of the programs within State
government. The study shall also consider whether the functions
of the programs could be more efficiently and effectively
performed by an appropriate nonprofit organization. The
Secretary shall report the findings and recommendations to the
Joint Legislative Commission on Governmental Operations and to
the Chairs of the Senate and House of Representatives
Appropriations Committees by May 1, 2004.
LOW-INCOME RESIDENTIAL ENERGY PROGRAM
SECTION 18.3. G.S. 113B-6 reads as rewritten:
"§ 113B-6. General duties and responsibilities.
The Energy Policy Council shall have the following
general duties and responsibilities:
(1) To develop and recommend to the Governor a
comprehensive long-range State energy policy to
achieve maximum effective management and use of
present and future sources of energy, such policy
to include but not be limited to an energy
efficiency program, an energy management plan, an
emergency energy program, and an energy research
and development program;
(2) To conduct an ongoing assessment of the
opportunities and constraints presented by various
uses of all forms of energy and to encourage the
efficient use of all such energy forms in a manner
consistent with State energy policy;
(3) To continually review and coordinate all State
government research, education and management
programs relating to energy matters and to
continually educate and inform the general public
regarding such energy matters;
(4) To recommend to the Governor and to the General
Assembly needed energy legislation and to recommend
for implementation such modifications of energy
policy, plans and programs as the Council considers
necessary and desirable.
(5) To develop and administer the
Low-Income Residential Energy Program. Nothing in
this subdivision shall be construed as obligating
the General Assembly to appropriate funds for the
Program or as entitling any person to services
under the Program."
PETROLEUM OVERCHARGE FUNDS ALLOCATION
SECTION 18.4.(a) There is appropriated from funds
and interest thereon received from the case of United States
v. Exxon that remain in the Special Reserve for Oil
Overcharge Funds to the Department of Administration the sum of
one million dollars ($1,000,000) for the 2003-2004 fiscal year
to be allocated for the Low Income Residential Energy Program.
SECTION 18.4.(b) Any funds remaining in the
Special Reserve for Oil Overcharge Funds after the allocation is
made pursuant to subsection (a) of this section may be expended
only as authorized by the General Assembly and upon
recommendations of the State Energy Policy Council. All
interest or income accruing from all deposits or investments of
cash balances shall be credited to the Special Reserve for Oil
Overcharge Funds.
VETERANS SCHOLARSHIPS PARTIALLY FUNDED FROM ESCHEAT FUND
SECTION 18.5.(a) G.S. 165-22.1(b) reads as
rewritten:
"(b)Funds for the support of this program shall be
appropriated to the Department of Administration as a reserve
for payment of the allocable costs for room, board, tuition, and
other charges, and shall be placed in a separate budget code
from which disbursements shall be made. Funds to support the
program shall be supported by receipts from the Escheat Fund, as
provided by G.S. 116B-7, but those funds may be used only for
worthy and needy residents of this State who are enrolled in
public institutions of higher education of this State. In
the event the said appropriation for any year is insufficient to
pay the full amounts allocable under the provisions of this
Article, such supplemental sums as may be necessary shall be
allocated from the Contingency and Emergency Fund. The method of
disbursing and accounting for funds allocated for payments under
the provisions of this section shall be in accordance with those
standards and procedures prescribed by the Director of the
Budget, pursuant to the Executive Budget Act."
SECTION 18.5.(b) G.S. 116B-7 reads as rewritten:
"§ 116B-7. Distribution of income of fund.
(a) The income derived from the investment or
deposit of the Escheat Fund shall be distributed annually on or
before July 15 to the State Education Assistance Authority for
grants and loans to aid worthy and needy students who are
residents of this State and are enrolled in public institutions
of higher education in this State. Such grants and loans shall
be made upon terms, consistent with the provisions of this
Chapter, pursuant to which the State Education Assistance
Authority makes grants and loans to other students under G.S.
116-201 to 116-209.23, Article 23 of Chapter 116 of the General
Statutes, policies of the Board of Governors of The University
of North Carolina regarding need-based grants for students of
The University of North Carolina, and policies of the State
Board of Community Colleges regarding need-based grants for
students of the community colleges.
(b) An amount specified in the Current Operations
Appropriations Act shall be transferred annually from the
Escheat Fund to the Department of Administration to partially
fund the program of Scholarships for Children of War Veterans
established by Article 4 of Chapter 165 of the General Statutes.
Those funds may be used only for residents of this State who (i)
are worthy and needy as determined by the Department of
Administration, and (ii) are enrolled in public institutions of
higher education of this State."
SECTION 18.5.(c) In accordance with G.S.
116B-7(b) as enacted by this act, for the 2003-2004 and
2004-2005 fiscal years, there is appropriated from the Escheat
Fund to the Department of Administration the amount of three
million seven hundred twenty-eight thousand three hundred
twenty-four dollars ($3,728,324) for each year.
SELL SURPLUS/CONFISCATED PROPERTY ELECTRONICALLY
SECTION 18.6.(a) G.S. 143-64.03 is amended by
adding the following new subsection to read:
"(d) The State agency for surplus property may sell
or otherwise dispose of surplus property, including motor
vehicles, through an electronic auction service."
SECTION 18.6.(b) Article 3A of Chapter 143 of
the General Statutes is amended by adding a new Part to read:
"Part 3. Public Agencies.
"§ 143-64.6. Disposal of surplus property.
A county, municipality, or other public body may sell
or otherwise dispose of surplus property, including motor
vehicles, through an electronic auction service."
SECTION 18.6.(c) Article 2 of Chapter 15 of the
General Statutes is amended by adding a new section to read:
"§ 15-14.1. Sale of property through electronic
auction.
In addition to selling property as authorized in G.S.
15-13, a sheriff or police department may sell property in his
or its possession through an electronic auction service. The
sheriff or police department shall comply with the publication
and notice requirements provided in G.S. 15-12 through G.S. 15-
14 prior to any sale under this section."
PART XIX. OFFICE OF THE STATE AUDITOR
SMART START AUDITS
SECTION 19.1. G.S. 143B-168.14(b) reads as
rewritten:
"(b)Each local partnership shall be subject to audit and
review by the State Auditor under Article 5A of Chapter 147 of
the General Statutes. The State Auditor shall conduct annual
financial and compliance audits of the local
partnerships.partnerships that are rated
"needs improvement" in performance assessments authorized in
G.S. 143B-168.12(a)(7). Local partnerships that are rated
"superior" or "satisfactory" in performance assessments
authorized in G.S. 143B-168.12(a)(7) shall undergo biennial
financial and compliance audits by the State Auditor."
PART XIX-B. GENERAL ASSEMBLY
LEGISLATIVE FOOD SERVICE DONATE FOOD
SECTION 19B.1. The General Assembly food service
shall on a daily basis donate to a nonprofit organization food
that would otherwise be discarded.
GENERAL ASSEMBLY/USE AND MAINTENANCE OF BUILDINGS AND GROUNDS
SECTION 19B.2. G.S. 120-32.1(d)(1)b. reads as
rewritten:
"(d)For the purposes of this section, the term "State
legislative buildings and grounds" means:
(1) At all times:
...
b. The Legislative Office Building, its
garden area and outer stairway, and the areas
between its outer walls and the near curbline
of those sections of Lane and Salisbury
Streets that border the land on which it is
situated; which shall include the
following areas:
1. The garden area and outer
stairway;
2. The loading dock area bounded by
the wall on the east abutting the State
Government Mall, the southern edge of the
southernmost exit lane on Salisbury
Street for the parking deck, and the
Salisbury Street sidewalk;
3. The area between its outer wall
and the near curbline of that section of
Lane Street that borders the land on
which it is situated; and
4. The area bounded by its western
outer wall, the extension of a line along
its northern outer wall to the middle of
Salisbury Street, following the middle
line of Salisbury Street to the nearest
point of the intersection of Lane and
Salisbury Streets, and thence east to the
near curbline of the Legislative Office
Building at its southwestern
corner;".
PART XX. OFFICE OF THE GOVERNOR
HOUSING FINANCE AGENCY HOME MATCHING FUNDS
SECTION 20.1.(a) Funds appropriated in this act to
the Housing Finance Agency for the federal HOME Program shall be
used to match federal funds appropriated for the HOME Program.
In allocating State funds appropriated to match federal HOME
Program funds, the Agency shall give priority to HOME Program
projects, as follows:
(1) First priority to projects that are located in
counties designated as Tier One, Tier Two, or Tier
Three Enterprise Counties under G.S. 105-129.3; and
(2) Second priority to projects that benefit persons
and families whose incomes are fifty percent (50%)
or less of the median family income for the local
area, with adjustments for family size, according
to the latest figures available from the United
States Department of Housing and Urban Development.
The Housing Finance Agency shall report to the Joint
Legislative Commission on Governmental Operations by April 1 of
each year concerning the status of the HOME Program and shall
include in the report information on priorities met, types of
activities funded, and types of activities not funded.
SECTION 20.1.(b) If the United States Congress
changes the HOME Program such that matching funds are not
required for a given program year, then the Agency shall not
spend the matching funds appropriated under this act for that
program year.
SECTION 20.1.(c) Funds appropriated in this act
to match federal HOME Program funds shall not revert to the
General Fund on June 30, 2004, or on June 30, 2005.
PART XXI. INFORMATION TECHNOLOGY
ITS BUDGET STRUCTURE REVIEW/REPORT
SECTION 21.1. The Office of State Budget and
Management (OSBM) shall conduct a study of information
technology (IT) expenditures across all of State government,
with focused attention to identification and elimination of
duplicative IT expenditures, operations, and inventory, to
identify and recommend potential cost savings and efficiencies
in State agency IT operations. In this study, OSBM should
address the following questions:
(1) Is State government's IT budgeting and
organizational structure the most efficient
approach?
(2) What alternative IT budgeting and organizational
structures could help North Carolina realize cost
savings?
OSBM shall work in conjunction with the Office of
Information Technology Services (ITS) and the Information
Resources Management Commission (IRMC) to study the ITS and the
IRMC budget structures. As part of this study, OSBM shall
prepare at least three alternative budget transition plans for
ITS and IRMC. Two of the transition plans shall, at a minimum,
address the feasibility of (i) making portions or all of the ITS
and the IRMC budgets General Fund appropriations and including a
proposal for how a nontax revenue source to reimburse the
General Fund for appropriations could be made from agency
receipts for ITS services utilized and (ii) maintaining the ITS
and the IRMC budgets as Internal Service Funds, but having the
budgets approved by the Office of State Budget and Management
and the General Assembly instead of being approved by IRMC as
they are currently. By April 1, 2004, OSBM shall make reports on
these matters to the Joint Legislative Commission on
Governmental Operations, the Chairs of the Joint Appropriations
Subcommittee on General Government, and the Fiscal Research
Division.
ITS MAINTENANCE AGREEMENT PILOT PROJECT
SECTION 21.2.(a) Notwithstanding the cash
management provisions of G.S. 146-86.11, the State Controller
may authorize the Office of Information Technology Services
(ITS) to purchase not more than four infrastructure maintenance
agreements for periods not exceeding two years where the terms
of those maintenance agreements require payment of the full
purchase price at the beginning of the maintenance period. The
State Controller shall not authorize the agreements authorized
by this section unless all of the following conditions are met:
(1) The proposed infrastructure maintenance agreement
is entered into after June 30, 2003, and before
July 1, 2004.
(2) The State Controller receives conclusive evidence
that the proposed infrastructure agreement would be
more cost-effective than any similar agreement that
complies with G.S. 146-86.11.
(3) The State Controller verifies that the savings
resulting from the proposed infrastructure
agreement will be passed on to network users in the
form of lower rates for ITS services.
(4) The purchase of the proposed maintenance agreement
complies in all other respects with applicable
statutes and rules.
(5) ITS shall make adjustments of excess revenue, based
on IRMC-approved rates, over allowable costs. ITS
shall refund the excess to ITS' State and local
government customers in the same manner as is
required by the federal government in the Office of
Management and Budget Circular A-87.
SECTION 21.2.(b) The State Controller shall
provide full justification for any authorizations granted under
this section to the Joint Legislative Commission on Governmental
Operations and to the Fiscal Research Division of the General
Assembly within 60 days after the authorization is granted.
PART XXII. DEPARTMENT OF INSURANCE
INSURANCE FUND TRANSFER TO GENERAL FUND
SECTION 22.1. The Commissioner of Insurance shall
transfer funds quarterly from the Department of Insurance Fund
to the General Fund to repay the funds appropriated to the
Department of Insurance from the General Fund for each fiscal
year, plus accrued interest at a rate determined by the State
Treasurer.
EXTEND THE SUNSET FOR FUNDING CERTAIN OPERATIONS OF THE
DEPARTMENT OF INSURANCE THROUGH THE INSURANCE REGULATORY FUND
SECTION 22.2. Section 12 of S.L. 2002-144 reads as
rewritten:
"SECTION 12. This act becomes effective July 1, 2002.
Sections 1 through 8 of this act expire June 30,
2003.June 30, 2004."
PART XXIII. DEPARTMENT OF REVENUE
DOR TAXPAYER TELECOMMUNICATIONS SERVICE
SECTION 23.1. Section 22.6 of S.L. 2002-126 reads
as rewritten:
"SECTION 22.6.(a) The Department of Revenue
may draw up to seven million eight hundred forty thousand five
hundred thirteen dollars ($7,840,513) through June 30, 2004,
There is appropriated from the collection
assistance fee account created in G.S. 105-243.1 to the
Department of Revenue the sum of one million six hundred
twenty-two thousand eight hundred ninety-six dollars
($1,622,896) for the 2003-2004 fiscal year and the sum of two
million one hundred fifty-four thousand five hundred
ninety-three dollars ($2,154,593) for the 2004-2005 fiscal year
in order to pay for the costs of
establishing and equipping a central taxpayer telecommunications
service center for collections and assistance and for the costs
associated with aligning local field offices with the new
center.
"SECTION 22.6.(b) The Secretary of Revenue
shall consult with the Joint Legislative Commission on
Governmental Operations on a detailed plan with proposed costs
before any funds may be expended for these purposes. This plan
must be presented by October 31, 2002.
"SECTION 22.6.(c) Beginning January 1, 2003, and
ending on the second quarter following completion of the
projects described in subsection (a) of this section, the
Department of Revenue must report quarterly to the Joint
Legislative Commission on Governmental Operations on the use of
the funds and the progress of establishing the new center."
CERTAIN DOR POSITIONS FEE-SUPPORTED
SECTION 23.2. There is appropriated from the
collection assistance fee account created in G.S. 105-243.1 to
the Department of Revenue the sum of five hundred thirty-one
thousand five hundred twelve dollars ($531,512) for the
2003-2004 fiscal year and the sum of five hundred thirty-one
thousand five hundred twelve dollars ($531,512) for the
2004-2005 fiscal year for salary and related fringe benefits for
the following positions formerly supported from the General
Fund:
Position No. 4784-0000-0076-621 - Revenue Officer II
Position No. 4784-0000-0076-622 - Revenue Officer II
Position No. 4784-0000-0076-636 - Revenue Officer I
Position No. 4784-0000-0076-637 - Revenue Officer I
Position No. 4784-0000-0076-638 - Revenue Officer I
Position No. 4784-0000-0076-639 - Revenue Officer I
Position No. 4784-0000-0076-640 - Revenue Officer I
Position No. 4784-0000-0076-641 - Revenue Officer I
Position No. 4784-0000-0076-642 - Revenue Officer I
Position No. 4784-0000-0076-643 - Revenue Officer I
Position No. 4784-0000-0076-644 - Revenue Officer I
Position No. 4784-0000-0076-645 - Revenue Officer I
Position No. 4784-0000-0076-647 - Revenue Officer I
DOR TAXPAYER CALL CENTER FUND CODE
SECTION 23.3. Funds appropriated to the Department
of Revenue for a central taxpayer telecommunications service
center for collections and assistance shall be transferred to a
separate, receipts-supported Fund Code in the Department's
budget. The Fund Code number is 1662.
DOR REPORT ON PROJECT COMPLIANCE
SECTION 23.4. The Department of Revenue must report
to the Joint Legislative Commission on Governmental Operations
and to the Revenue Laws Study Committee on its efforts to
address abuse of the voluntary tax compliance system, including
fraudulent activity, which has resulted in undercollections.
Reports must be submitted quarterly beginning February 1, 2004,
through July 30, 2006. Each report must include a breakdown of
the Department's additional initiatives resulting directly from
the Project Compliance funding provided for the 2003-2005 fiscal
biennium. The report must itemize additional collections by type
of tax as compared to an objectively determined baseline of
collections resulting from preexisting collection activities.
Each report must also include a long-term plan, a time line for
implementing each step of the plan, a summary of steps taken
since the last report and their results, and any other data
requested by the Commission or the Committee.
PART XXIV. SECRETARY OF STATE
TRANSFER CONSULTATION REQUIREMENT UNDER BUSINESS LICENSE
INFORMATION OFFICE TO SMALL BUSINESS CENTERS
SECTION 24.1.(a) The Department of the Secretary of
State (Department) and the North Carolina Community College
System (System) shall develop and implement a plan to transfer
the consultation function of the Business License Information
Office (BLIO) in the Department to the Small Business Centers
that are located within each of the community colleges in the
System. The plan shall provide for the following:
(1) Establishment of a Statewide Coordinator position
who will develop and maintain a web-based master
application system of all State licensing and
regulatory requirements.
(2) Development and ongoing maintenance of a web-based
master application system of all State licensing
and regulatory requirements.
(3) Training for the Directors of the Small Business
Centers.
(4) Phase-out of the BLIO consultant positions.
SECTION 24.1.(b) The Department shall use funds
appropriated for the 2003-2004 fiscal year for the Business
License Information Office (Fund 1240) in Budget Code 13200 to
develop the web-based master application and for training.
SECTION 24.1.(c) The Department and the System
shall present their plan to the Joint Legislative Commission on
Governmental Operations and to the Chairs of the Appropriations
Committees of the Senate and the House of Representatives by
October 1, 2003. After presenting the plan, the Department and
the System shall report on the implementation of the plan to the
Joint Legislative Commission on Governmental Operations and to
the Chairs of the Appropriations Committees of the Senate and
the House of Representatives on a quarterly basis. The plan
shall be fully implemented by June 30, 2004.
REPORT ON DISTRIBUTION AND SALE OF THE NORTH CAROLINA MANUAL
SECTION 24.2. The Department of the Secretary of
State shall report on the distribution and sale of the North
Carolina Manual as provided in G.S. 147-54. The report shall
include: (i) the number of copies that were distributed and the
agencies and institutions to which they were distributed; (ii)
the cost of distributing the manual; (iii) the number of copies
that were sold and whether they were purchased by the general
public, agencies, or institutions; and (iv) the amount of
revenue realized from the sale of the manual.
The Department shall also study and report on the
feasibility of making the manual available via the Internet.
The Department shall submit its report to the
Appropriations Subcommittees on General Government of the Senate
and House of Representatives and to the Fiscal Research Division
by April 1, 2004.
PART XXV. STATE BOARD OF ELECTIONS
HELP AMERICA VOTE ACT MATCHING FUNDS
SECTION 25.1.(a) Of the funds appropriated to the
State Board of Elections for the 2003-2004 fiscal year by
Section 2.1 of this act:
(1) The sum of $1,791,936 is transferred to a Reserve
Fund to meet the Maintenance of Effort requirements
of section 254(a)(7) of the Help America Vote Act,
Public Law 107-252.
(2) The sum of $1,665,650 currently appropriated to
Fund 1100 Administration for the SEIMS RCC is
transferred to a Reserve Fund for the State Board
of Elections.
(3) The sum of $1,922,215 is transferred in the
2003-2004 fiscal year to the Election Fund
established by S.L. 2003-12 to meet the five
percent (5%) matching requirement of Title II Help
America Vote Act, Public Law 107-252 for the
2003-2005 fiscal biennium. Of that amount,
$1,188,760 shall be available for expenditure in
the 2003-2004 fiscal year, and the remaining
$733,455 shall be available for expenditure only
during the 2004-2005 fiscal year. The money shall
only be expended as federal funds are available to
match, and if the amount available to the State is
less than projected, the unexpended remainder of
the $1,922,215 shall revert to the General Fund on
the earlier of:
a. June 30, 2006; or
b. A determination by the Office of State Budget
and Management that the unexpended remainder
will not be needed.
SECTION 25.1.(b) The 107th Congress established
the Help America Vote Act (HAVA) as Public Law 107-252
establishing a program to assist in the administration of
federal elections and provide assistance with the administration
of certain federal elections laws and programs; establish
minimum election administration standards for states and units
of local government with the responsibility for the
administration of federal elections. In HAVA, Congress
authorized appropriations for elections assistance in the form
of a matching grant program (Title II of HAVA, Requirements
Payments) for which states are required as one condition of the
Election Assistance Requirements Payments to match federal
allocations with a five percent (5%) match of State dollars.
The federal government has additional requirements, including a
required state plan and a stipulation for each participating
state to implement the Maintenance of Effort (MOE) requirements
of Title II, section 254(a)(7) of HAVA. The MOE requires that
the state maintain the expenditures of the state for activities
funded by the payment at a level that is not less than the level
of such expenditures maintained by the state for the fiscal year
ending prior to November 2000. Congress authorized up to $1.4
billion for Requirements Payments, and $810 million for Title II
requirements grants was funded for fiscal year 2003. Title II
requirements funding has not been passed by Congress for fiscal
years 2004-2005 and 2005-2006 but is currently proposed at $500
million for each year.
Based upon the 2003 approved funding, it is estimated
that North Carolina will receive $22.6 million of the Title II
funding if North Carolina meets all the conditions of the
Election Assistance program, including not only the five percent
(5%) state match but also maintenance of its expenditure level
on HAVA activities at the expense level the State Board of
Elections had in State fiscal year 1999-2000. Actual
expenditures for the State Elections Information Management
System (SEIMS), which is a qualified HAVA activity, in 1999-2000
were three million four hundred fifty-seven thousand five
hundred eighty-five dollars and six cents ($3,457,585.06). The
authorized expenditures on SEIMS in 2002-2003 by the State Board
of Elections is one million six hundred sixty-five thousand six
hundred fifty dollars ($1,665,650). The difference in
expenditure levels is one million seven hundred ninety-one
thousand nine hundred thirty-five dollars and six cents
($1,791,935.06). To meet HAVA's Title II MOE requirement, North
Carolina has to appropriate from its General Fund to a Reserve
on a recurring basis (or for as long as Congress requires the
MOE as a condition of states' being eligible to receive
Requirements Payments), the amount of three million four hundred
fifty-seven thousand five hundred eighty-five dollars and six
cents ($3,457,585.06) annually.
For the State to meet its obligatory five percent (5%)
match for HAVA's Title II Requirements Payments, North Carolina
has to match twenty-two million six hundred thousand dollars
($22,600,000) estimated federal funds in 2003-2004; thirteen
million nine hundred forty-four thousand dollars ($13,944,000)
estimated federal funds in 2004-2005. The State's match is one
million one hundred eighty-eight thousand seven hundred sixty
dollars ($1,188,760) in 2003-2004 and seven hundred thirty-three
thousand four hundred fifty-five dollars ($733,455) in
2004-2005. The nonrecurring match total required for the
2003-2005 fiscal biennium from the General Fund is one million
nine hundred twenty-two thousand two hundred fifteen dollars
($1,922,215).
PART XXVI. OFFICE OF STATE BUDGET AND MANAGEMENT
NC HUMANITIES COUNCIL
SECTION 26.1. The North Carolina Humanities Council
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) Provide to the Fiscal Research Division a copy of
the organization's annual audited financial
statement within 30 days of issuance of the
statement.
PART XXVII. OFFICE OF THE STATE CONTROLLER
OVERPAYMENTS AUDIT
SECTION 27.1.(a) During the 2003-2004 fiscal year,
receipts generated by the collection of inadvertent overpayments
by State agencies to vendors as a result of pricing errors,
neglected rebates and discounts, miscalculated freight charges,
unclaimed refunds, erroneously paid excise taxes, and related
errors as required by G.S. 147-86.22(c) are to be deposited in
the Special Reserve Account 24172.
SECTION 27.1.(b) For the 2003-2004 fiscal year,
two hundred thousand dollars ($200,000) of the funds transferred
from the Special Reserve Account 24172 shall be used by the
Office of the State Controller for data processing, debt
collection, or e-commerce costs.
SECTION 27.1.(c) All funds available in the
Special Reserve Account 24172 on July 1, 2003, are transferred
to the General Fund on that date.
SECTION 27.1.(d) Any unobligated funds in the
Special Reserve Account 24172 that are realized above the
allowance in subsection (b) of this section are subject to
appropriation by the General Assembly in the 2004 Regular
Session of the 2003 General Assembly.
SECTION 27.1.(e) The State Controller shall
report quarterly to the Joint Legislative Commission on
Governmental Operations and the Fiscal Research Division on the
revenue deposited into the Special Reserve Account and the
disbursement of that revenue.
PART XXVIII. DEPARTMENT OF THE STATE TREASURER
STATE TREASURER SUBJECT TO EXECUTIVE BUDGET ACT
SECTION 28.2.(a) G.S. 147-68(e) reads as rewritten:
"(e)The State Treasurer Treasurer, in
carrying out the responsibilities of this section, shall
except as provided in G.S. 143-25 be
independent of any fiscal control exercise by the Director of
the Budget or the Department of Administration and shall be
responsible to the Advisory Budget Commission, the General
Assembly and the people of North Carolina for the efficient and
faithful exercise of the responsibilities of his office. The
State Treasurer, for all other purposes, is subject to Article 1
of Chapter 143 of the General Statutes."
SECTION 28.2.(b) Subsection (a) of this section
becomes effective July 1, 2003.
REPORT OF THE STATUS OF THE TECHNOLOGY INFRASTRUCTURE
ENHANCEMENTS
SECTION 28.3. The Department of State Treasurer
shall report to the Joint Legislative Commission on Governmental
Operations and to the Chairs of the Appropriations Committees
for the Senate and the House of Representatives on the status of
the replacement of the multitude of information technology
systems with an integrated system for all the retirement plans
and other programs administered by the Retirement Systems
Division. The Department shall report semiannually by October 1
and April 1 until the enhancements are fully implemented.
STAFFING ANALYSIS FOLLOW-UP
SECTION 28.4.(a) The Office of State Budget and
Management shall conduct semiannual follow-up analyses to the
Staffing Analysis that was completed in April 2003 on the
Retirement Systems Division within the Department of State
Treasurer by October 1 and April 1 of each year to assure that
the staffing levels remain appropriate. The semiannual analyses
shall be conducted throughout the implementation of the
enhancements to the information technology infrastructure within
the Retirement Systems Division that were authorized by this
act. The follow-up analyses shall also continue for a reasonable
time after the completion of the enhancements to ensure that the
staffing levels are adjusted based on the increased efficiency
provided by the enhancements.
SECTION 28.4.(b) The Retirement Systems Division
shall maintain monthly workload statistics and productivity data
for the various functions within the Division. The Department of
State Treasurer shall report the workload statistics and
productivity data to the Fiscal Research Division and to the
Office of State Budget and Management on a quarterly basis.
AUTHORIZATION FOR TEMPORARY AND CONTRACTUAL SERVICES FOR
UNCLAIMED PROPERTY PROGRAM
SECTION 28.5. The Department of State Treasurer may
use up to one hundred seventy-six thousand dollars ($176,000) in
additional receipts from the Escheats Fund for fiscal year
2003-2004 for contractual services for temporary personnel to
process the increased volume of applications for return of money
and real property and for securing data entry services necessary
to keep current the information that the Department makes
available to the public on unclaimed money and real property. Of
this amount, up to one hundred twenty-six thousand dollars
($126,000) may be used to employ six temporary workers through a
temporary service to process claims. The remaining fifty
thousand dollars ($50,000) may be used for miscellaneous
contractual services to assist with data entry. The Department
shall consult with the Joint Legislative Commission on
Governmental Operations prior to incurring any expenditure of
the additional receipts.
PART XXIX. DEPARTMENT OF TRANSPORTATION
CASH-FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 29.1.(a) The General Assembly authorizes and
certifies anticipated revenues of the Highway Fund as follows:
For Fiscal Year 2005-2006 $1,409.2 million
For Fiscal Year 2006-2007 $1,458.9 million
For Fiscal Year 2007-2008 $1,509.4 million
For Fiscal Year 2008-2009 $1,558.8 million
SECTION 29.1.(b) The General Assembly authorizes
and certifies anticipated revenues of the Highway Trust Fund as
follows:
For Fiscal Year 2005-2006 $1,096.3 million
For Fiscal Year 2006-2007 $1,148.0 million
For Fiscal Year 2007-2008 $1,202.6 million
For Fiscal Year 2008-2009 $1,252.4 million
SMALL URBAN CONTINGENCY FUNDS
SECTION 29.2. Of the funds appropriated in this act
to the Department of Transportation:
(1) Twenty-eight million dollars ($28,000,000) shall be
allocated in each fiscal year for small urban
construction projects. These funds shall be
allocated equally in each fiscal year of the
biennium among the 14 Highway Divisions for the
small urban construction program for small
construction projects that are located within the
area covered by a two-mile radius of the municipal
corporate limits.
(2) Fifteen million dollars ($15,000,000) in fiscal
year 2003-2004 and ten million dollars
($10,000,000) in fiscal year 2004-2005 shall be
used statewide for rural or small urban highway
improvements and related transportation
enhancements to public roads and public facilities,
industrial access roads, and spot safety projects
as approved by the Secretary of Transportation.
None of these funds used for rural secondary road
construction are subject to the county allocation formulas in
G.S. 136-44.5(b) and (c).
These funds are not subject to G.S. 136-44.7.
The Department of Transportation shall report to the
members of the General Assembly on projects funded pursuant to
this section in each member's district prior to the Board of
Transportation's action. The Department shall make a quarterly
comprehensive report on the use of these funds to the Joint
Legislative Transportation Oversight Committee and the Fiscal
Research Division.
DEPARTMENT OF TRANSPORTATION PRODUCTIVITY PILOT PROGRAMS
SECTION 29.3. The Department of Transportation may
establish two pilot programs to test incentive pay for employees
as a means for increasing efficiency and productivity.
One of the pilot programs shall involve the highway
resurfacing program using road oil. Up to one-fourth of one
percent (0.25%) of the budget allocation for this program may be
used to provide employee incentive payments.
The other pilot project may be selected by the
Department of Transportation, and up to twenty-five thousand
dollars ($25,000) may be used from existing budgets for
incentives.
Incentive payments shall be based on quantifiable
measures and production schedules determined prior to the
implementation of the pilot programs that shall last no more
than two years.
The Department of Transportation shall report to the
Joint Legislative Transportation Oversight Committee on the
pilot programs at least 30 days prior to their implementation.
REDUCE HIGHWAY TRUST FUND ADMINISTRATION ALLOCATION
SECTION 29.4. G.S. 136-176(b) reads as rewritten:
"(b)Funds in the Trust Fund are annually appropriated to the
Department of Transportation to be allocated and used as
provided in this subsection. A sum, not to exceed four
and one-half percent (4.5%) four percent (4%) of
the amount of revenue deposited in the Trust Fund under
subdivisions (a)(1), (2), and (3) of this section,
section for the 2003-2004 fiscal year and three and
eight-tenths percent (3.8%) thereafter, may be used each
fiscal year by the Department for expenses to administer the
Trust Fund. Operation and project development costs of the North
Carolina Turnpike Authority are eligible administrative expenses
under this subsection. Any funds allocated to the Authority
pursuant to this subsection shall be repaid by the Authority
from its toll revenue as soon as possible, subject to any
restrictions included in the agreements entered into by the
Authority in connection with the issuance of the Authority's
revenue bonds. Beginning one year after the Authority begins
collecting tolls on a completed Turnpike Project, interest shall
accrue on any unpaid balance owed to the Highway Trust Fund at a
rate equal to the State Treasurer's average annual yield on its
investment of Highway Trust Fund funds pursuant to G.S. 147-6.1.
Interest earned on the unpaid balance shall be deposited in the
Highway Trust Fund upon repayment. The rest of the funds in the
Trust Fund shall be allocated and used as follows:
(1) Sixty-one and ninety-five hundredths percent
(61.95%) to plan, design, and construct the
projects of the Intrastate System described in G.S.
136-179 and to pay debt service on highway bonds
and notes that are issued under the State Highway
Bond Act of 1996 and whose proceeds are applied to
these projects.
(2) Twenty-five and five hundredths percent (25.05%) to
plan, design, and construct the urban loops
described in G.S. 136-180 and to pay debt service
on highway bonds and notes that are issued under
the State Highway Bond Act of 1996 and whose
proceeds are applied to these urban loops.
(3) Six and one-half percent (6.5%) to supplement the
appropriation to cities for city streets under G.S.
136-181.
(4) Six and one-half percent (6.5%) for secondary road
construction as provided in G.S. 136-182 and to pay
debt service on highway bonds and notes that are
issued under the State Highway Bond Act of 1996 and
whose proceeds are applied to secondary road
construction.
The Department must administer funds allocated under
subdivisions (1), (2), and (4) of this subsection in a manner
that ensures that sufficient funds are available to make the
debt service payments on bonds issued under the State Highway
Bond Act of 1996 as they become due."
USE OF EXCESS OVERWEIGHT/OVERSIZE FUNDS
SECTION 29.5. Funds generated by
overweight/oversize permit fees in excess of the cost of
administering the program, as determined pursuant to G.S.
20-119(e), shall be used for highway and bridge maintenance
required as a result of damages caused from overweight/oversize
loads.
ENVIRONMENTAL PERMITS ON DEPARTMENT OF TRANSPORTATION
CONSTRUCTION PROJECTS
SECTION 29.6. Chapter 136 of the General Statutes
is amended by adding a new section to read:
"§ 136-44.7B. Permit issuance by Department of
Environment and Natural Resources transportation
construction projects.
Once the Department of Environment and Natural
Resources or any agency within the Department of Environment and
Natural Resources has issued a permit that is required for a
transportation construction project to be undertaken by or on
behalf of the Department of Transportation pursuant to the
Transportation Improvement Program, that permit shall remain in
effect until the project is completed. The permit shall not
expire and shall not be modified or canceled for any reason,
including a subsequent change in federal law or regulations or
in State law or rules, unless at least one of the following
occurs:
(1) The modification or cancellation is
requested by the Department of Transportation.
(2) The modification or cancellation is
clearly required by a change in federal law or
regulations and a failure to modify or cancel the
permit by the Department of Environment and Natural
Resources will or may result in a loss of federal
program delegation or a significant reduction in
the availability of federal funds to the Department
of Environment and Natural Resources or to the
Department of Transportation.
(3) The modification or cancellation is
clearly required by a change in State law as a
result of an act of the General Assembly that
includes a statement that the General Assembly
specifically intends the change in State law to
apply to ongoing transportation construction
projects.
(4) The modification or cancellation is
ordered by a court of competent jurisdiction.
(5) The nature or scope of the
transportation construction project is
significantly expanded or otherwise altered.
(6) Federal law or regulation requires
that the permit expire at the end of a specific
term of years."
DRIVER EDUCATION PRIVATIZATION
SECTION 29.7. The State Board of Education shall
study statewide privatization of State-funded driver education
programs. The State Board of Education shall report to the Joint
Legislative Education Oversight Committee and the Joint
Legislative Transportation Oversight Committee by November 30,
2003, on proposals for statewide privatization and cost
reduction.
FUNDS FOR UNSAFE OR OBSOLETE FACILITIES
SECTION 29.10. The Department of Transportation may
use funds not to exceed seventy-five hundredths of one percent
(.75%) of the funds appropriated in this act to the Department
for maintenance and construction programs for major repair,
renovation, or replacement of facilities that fail to meet
safety standards or that are obsolete for current or future use.
Prior to expending these funds, the Department shall submit its
proposed budget for these expenditures to the Senate
Appropriations Subcommittee on Department of Transportation, the
House of Representatives Appropriations Subcommittee on
Transportation, and the Joint Legislative Transportation
Oversight Committee each year.
AMEND THE HIGHWAY TRUST FUND ACT DESCRIPTIONS OF URBAN LOOPS
AND OTHER INTRASTATE IMPROVEMENT PROJECTS
SECTION 29.11.(a) G.S. 136-180(a) reads as
rewritten:
"(a)Funds allocated from the Trust Fund for urban loops may
be used only for the following urban loops:
Affected
Loop Description Counties
Asheville Western Multilane facility on new Buncombe
Loop location from I-26 west of
Asheville to US-19/23
north of Asheville for the
purpose of connecting these
roads. The funds may be
used to improve existing
corridors.
Charlotte Outer Loop Multilane facility on Mecklenburg
new location encircling
City of Charlotte
Durham Northern Loop The corridor
shall be Durham,
OrangeWake
identified as
a part of the local
long-range
transportation plan
as mutually adopted
in 2003 by the Durham-
Chapel Hill-Carrboro
metropolitan planning
organization and the
North Carolina Board
of Transportation
The projects
listed below are
eligible for funding
under this section as
part of the Durham
Northern Loop. The
priorities for
planning and
constructing these
projects will be
established by mutual
agreement of the
Metropolitan Planning
Organization (MPO)
and the Department of
Transportation
through the federally
mandated
Transportation
Improvement Program
development process.
The cross sections
for these projects
will be established
by mutual agreement
of the MPO and the
Department of
Transportation
through the State and
federal environmental
review process.
(1) East end
connector, from N.C.
147 to U.S. 70
East.
(2) U.S. 70, from
Lynn Rd. to the
Northern Durham
Parkway.
(3) I-85, from
U.S. 70 to Red Mill
Rd.
(4) Northern
Durham Parkway,
Section B, from Old
Oxford Rd. to I-
85.
(5) Northern
Durham Parkway,
Section A, from I-85
to I-540.
(6) Northern
Durham Parkway,
Section C, from Old
Oxford Rd. to Roxboro
Rd.
(7) Roxboro Rd.
from Duke St. to
Goodwin Rd.
Fayetteville Multilane facility on new
Cumberland
Western Outer Loop location from US 401
north of Fayetteville to
I-95 south of Hope Mills
Greensboro Loop Multilane facility on new Guilford
location encircling City
of Greensboro including
interchanges with Cone
Boulevard Extension and
Lewis-Fleming Road
Extension
Greenville Loop Multilane extension of the
Pitt
Greenville Loop from US 264
west of Greenville to NC-11 south
of Winterville
Raleigh Outer Loop Multilane facility on Wake
new location from
US-1NC 55
southwest of Cary
northerly to US-64 in
eastern Wake County
Wilmington Bypass Multilane facility on new New Hanover
location from US-17
northeast of Wilmington
to US-17 southwest
of Wilmington,US
421
in southern Wilmington,
including the Blue Clay Road
interchange
Winston-Salem Multilane facility on Forsyth
Northbelt new location from I-40 west
of Winston-Salem northerly
to I-40 US 311/Future
I-74
in eastern Forsyth County."
SECTION 29.11.(b) G.S. 136-179 reads as
rewritten:
"§ 136-179. Projects of Intrastate System funded from Trust
Fund.
Funds allocated from the Trust Fund for the Intrastate
System may be used only for the following projects of the
Intrastate System:
Route Improvements Affected Counties
I-40 Widening Buncombe, Haywood,
Guilford, Wake, Durham
I-77 Widening Mecklenburg
I-85 Widening Durham, Orange, Alamance,
Guilford, Cabarrus,
Mecklenburg, Gaston
I-95 Widening Halifax
US-1 Complete 4-laning from
Vance, Franklin,
Henderson to South Wake, Chatham, Lee,
Carolina Line Moore, Richmond
(including 6-laning of
Raleigh Beltline)
US-13 Connector from
I-95
Cumberland
to NC-87
US-13 Complete 4-laning from
Gates, Hertford,
Virginia Line to US-17 Bertie
US-17 Complete 4-laning from
Camden, Pasquotank,
Virginia Line to South Perquimans, Chowan,
Carolina Line (including Bertie, Martin,
Washington, New Bern, Beaufort, Craven,
and Jacksonville Jones, Onslow,
Bypasses) Pender, New Hanover,
Brunswick
US-19/ Complete 4-laning from Madison, Yancey,
US-19E US-23 to NC 194 in Mitchell, Avery
Ingalls
US-19 Complete 4-laning Cherokee, Macon,
Swain
US-23 Complete 4-laning and Madison, Buncombe
upgrading existing
4-lanes from Tennessee
Line to I-240
US-23-441 Complete 4-laning from Macon
US-19/US-74 to Georgia
Line
US-52 Complete 4-laning from Surry, Davidson
I-77 to Lexington
(including new I-77
Connector)
US-64 Complete 4-laning from Edgecombe, Pitt,
Raleigh to Coast Martin, Washington,
(including freeway Tyrrell, Dare
construction from I-95
to US-17)
US-64 Complete 4-laning from Davidson, Randolph,
Lexington to Raleigh Chatham, Wake
US-70 Complete 4-laning from Wake, Johnston,
Raleigh to Morehead City Wayne, Lenoir,
(including Clayton, Craven
Goldsboro, Kinston,
Smithfield-Selma, and
Havelock Bypasses
predominately freeways
on predominately new
locations)
US-74 Complete 4-laning from Mecklenburg, Union,
Charlotte to US-17 Richmond, Robeson,
(including multilaning Columbus
of Independence Blvd. in
Charlotte, and Bypasses
of Monroe, Rockingham,
and Hamlet)
US-74 Complete 4-laning from Polk, Rutherford
I-26 to I-85
US-158 Complete 4-laning Forsyth, Guilford,
from Winston-Salem Rockingham, Caswell,
to Whalebone Person, Granville,
Vance, Warren,
Halifax,
Northampton, Gates,
Hertford,
Pasquotank, Camden,
Currituck, Dare
New bridge over Currituck
Currituck Sound
US-221 Complete 4-laning from Avery, McDowell,
Linville to South Rutherford
Carolina
US-220 Complete 4-laning from
Guilford, Randolph,
I-40 to US-1 Montgomery, Richmond
US-220/NC-68 Complete 4-laning from
Rockingham, Guilford
Virginia Line to I-40
US-264 Complete 4-laning from Wilson, Greene,
US-64 to Washington Pitt
(including Wilson and
Greenville Bypasses)
(including freeway
construction from I-95
to Greenville)
US-321 Complete 4-laning from Caldwell, Catawba,
Boone to South Carolina Lincoln, Gaston
Line
US-421 Complete 4-laning from Watauga, Wilkes,
Tennessee Line to I-40 Yadkin
US-421 Complete 4-laning from Chatham, Lee
Greensboro to Sanford
(including Bypass of
Sanford)
NC-24 Complete 4-laning from Mecklenburg,
Charlotte to Morehead Cabarrus, Stanly,
City Montgomery, Moore,
Harnett, Cumberland,
Sampson, Duplin,
Onslow, Carteret
NC-87 Complete 4-laning from Lee, Harnett,
Sanford to US-74 Cumberland, Bladen,
Columbus
NC-105 Complete 4-laning from Watauga, Avery
Boone to Linville
NC-168 Complete multilaning Currituck
from Virginia Line
to US-158
NC-194 Complete 4-laning from Avery
US-19E to US-221".
HIGHWAY TRUST FUND STUDY COMMITTEE
SECTION 29.12.(a) Study Committee Established. -
There is established a Highway Trust Fund Study Committee to
report to the Joint Legislative Transportation Oversight
Committee.
SECTION 29.12.(b) Membership. - The Study
Committee shall be composed of 20 members as follows:
(1) The Chairs of the Joint Legislative Transportation
Oversight Committee.
(2) Five Representatives and four public members
appointed by the Speaker of the House of
Representatives.
(3) Five Senators and four public members appointed by
the President Pro Tempore of the Senate.
The appointing authorities shall make their appointments
to reflect the urban-rural diversity of the population of the
State.
SECTION 29.12.(c) Duties of the Study Committee.
- The Study Committee may study all aspects of the Highway Trust
Fund. The study shall include the examination of all the
following:
(1) The current status, cost estimates, and feasibility
of Highway Trust Fund projects currently listed in
Article 14 of Chapter 136 of the General Statutes.
(2) Unanticipated problems with the structure of the
Highway Trust Fund.
(3) The gap between transportation funding structures
and the actual transportation needs of the State.
(4) Allocation issues raised by the structure of the
transportation funding equity distribution formula
in G.S. 136-17.2A.
(5) The feasibility of altering the project eligibility
requirements of the Highway Trust Fund, including
permitting the Department of Transportation to add
projects as long as adding those projects does not
delay projects already to be funded by the Highway
Trust Fund, projects scheduled under the 2002-2008
Transportation Improvement Program, and does not
impair the cash-flow provisions of G.S.
136-176(a1).
(6) The feasibility of altering the funding allocation
structure of the Highway Trust Fund, including the
possible use of the Highway Trust Fund to provide
the State match for available federal aid highway
funds as long as using the funds in this manner
does not delay projects already funded by the
Highway Trust Fund, projects scheduled under the
2002-2008 Transportation Improvement Program, and
does not impair the cash-flow provisions of G.S.
136-176(a1).
(7) Any other issue related to the Highway Trust Fund
or transportation funding.
SECTION 29.12.(d) Vacancies. - The appointing
authority shall fill any vacancy on the Study Committee.
SECTION 29.12.(e) Cochairs. - The Cochairs of
the Study Committee shall be the cochairs of the Joint
Legislative Transportation Oversight Committee. The Study
Committee shall meet upon the call of the Cochairs. A quorum of
the Study Committee shall be nine members.
SECTION 29.12.(f) Expenses of Members. - Members
of the Study Committee shall receive per diem, subsistence, and
travel allowances in accordance with G.S. 120-3.1, 138-5, or
138-6, as appropriate.
SECTION 29.12.(g) Staff. - The Legislative
Services Office shall assign professional and clerical staff to
assist the Study Committee in its work.
SECTION 29.12.(h) Consultants. - The Study
Committee may hire consultants to examine specific issues and
subjects related to the study, in accordance with G.S.
120-32.02.
SECTION 29.12.(i) Meetings During Legislative
Session. - The Study Committee may meet during a regular or
extra session of the General Assembly.
SECTION 29.12.(j) Meeting Location. - The Study
Committee may meet at various locations around the State in
order to promote greater public participation in its
deliberations. The Legislative Services Commission shall grant
adequate meeting space to the Study Committee in the State
Legislative Building or the Legislative Office Building.
SECTION 29.12.(k) Report. - The Study Committee
may make interim reports and shall make a final report to the
Joint Legislative Transportation Oversight Committee no later
than November 1, 2004. Regardless of whether it has filed an
interim or final report, the Committee shall terminate on
November 1, 2004.
SECTION 29.12.(l) Funding. - The Study Committee
shall be funded from funds available to the Joint Legislative
Transportation Oversight Committee, in accordance with G.S.
120-70.52.
SECTION 29.12.(m) This section is effective when
it becomes law.
MPO/RPO TRANSPORTATION PLANNING FUNDING
SECTION 29.14.(a) Of the funds allocated for
Highway Trust Fund Administration for the 2003-2004 fiscal year:
(1) The sum of seven hundred fifty thousand dollars
($750,000) shall be used to fund the activities of
Rural Transportation Planning Organizations created
pursuant to Article 17 of Chapter 136 of the
General Statutes. None of these funds shall be used
to pay for salaries or benefits.
(2) The sum of two million dollars ($2,000,000) shall
be used to implement the provisions of subsection
(b) of this section.
(3) The sum of seven hundred fifty thousand dollars
($750,000) shall be used to implement the
provisions of subsection (c) of this section.
SECTION 29.14.(b) Article 16 of Chapter 136 of
the General Statutes is amended by adding a new section to read:
"§ 136-200.5. Matching funds for Metropolitan Planning
Organizations located in nonattainment areas or
maintenance areas.
(a) Application. - The lead planning agency
for any Metropolitan Planning Organization located in an area
designated as a nonattainment or maintenance area under the
federal Clean Air Act (42 U.S.C. § 7401, et seq.) may apply to
the Department of Transportation for funds to avoid a plan
conformity lapse.
(b) Matching Required. - Funds provided under this
section shall be matched one-for-one by the local applicant
agency.
(c) Use of Funds. - Funds provided under this
section shall be used by the local applicant agency only to
avoid a plan conformity lapse.
(d) Limit on Funds. - The Department shall not
provide more than one million dollars ($1,000,000) per fiscal
year to any lead planning organization of a Metropolitan
Planning Organization pursuant to this section.
(e) Payback Required. - Any funds provided to a
lead planning organization of a Metropolitan Planning
Organization under this section shall be repaid within five
years, either from local sources or as an offset against
planning funds that might otherwise have been made available
from the Department to the lead planning organization."
SECTION 29.14.(c) Article 16 of Chapter 136 of
the General Statutes is amended by adding a new section to read:
"§ 136-200.6. Funds for local transportation planning
efforts in areas designated nonattainment areas or
maintenance areas.
(a) Application. - A regional transportation
planning agency in an area designated as a nonattainment or
maintenance area under the federal Clean Air Act (42 U.S.C. §
7401, et seq.) that has policy-setting authority for the entire
designated area and that is representative of all local
governments within the area, may apply to the Department of
Transportation for funds to support local transportation
planning efforts in that local government's region.
(b) Matching Required. - Funds provided under this
section shall be matched one-for-one by the applicant
agency.
(c) Use of Funds. - Funds provided under this
section shall only be used by the local applicant agency to
support regional transportation planning within the designated
area.
(d) Local Staff Required. - Funds shall be
provided under this section only if local governments in the
designated area support and supply staff to the regional
transportation planning agency.
(e) Limit on Funds. - The Department shall not
provide more than two hundred fifty thousand dollars ($250,000)
in any fiscal year to any agency pursuant to this section."
FERRY EMPLOYEE POSITIONS
SECTION 29.15. The Ferry Division shall use funds
available from increased toll revenues to convert a maximum of
39 temporary positions to permanent positions.
INCIDENT MANAGEMENT ASSISTANCE PATROL PROGRAM PERSONNEL
SECTION 29.16. Up to a maximum 26 full-time
temporary positions of the Incident Management Assistance Patrol
Program shall be designated as permanent positions.
TRANSPORTATION SERVICES FOR TRADE SHOWS
SECTION 29.17. The Department of Transportation,
from funds available for public transportation in this act, may
use up to nine hundred thousand dollars ($900,000) in each year
of the biennium for transportation services for annual or
semiannual trade shows of international significance. The
Department of Transportation shall report to the Joint
Legislative Transportation Oversight Committee, annually on or
before March 1, on the use of these funds.
VIRGINIA-NORTH CAROLINA INTERSTATE HIGH-SPEED RAIL COMMISSION
SECTION 29.19.(a) Section 2 of S.L. 2001-266, as
amended by Section 2.22 of S.L. 2001-486, reads as rewritten:
"SECTION 2. In conducting its study, the Commission
shall hold regularly scheduled meetings in this State
and in Virginia, tours of inspection, and public hearings as
appropriate to determine the desirability and feasibility of
establishing high-speed passenger rail service between Virginia
and North Carolina. The Commission shall also study the
establishment of an interstate high-speed rail compact between
North Carolina, Virginia, and other states. If it appears to
the Commission that establishment of such service or
compact is desirable and feasible, the Commission shall
consider and recommend to the Governor and General Assembly
those legislative actions necessary to do so, including the
identification of the necessary levels of funding and the
sources of those funds."
SECTION 29.19.(b) Section 4 of S.L. 2001-266, as
amended by Section 2.22 of S.L. 2001-486, reads as rewritten:
"SECTION 4. The Commission shall report its findings
and any recommendations to the Governor and the General Assembly
by October 20, 2002, November 30, 2004,
and may make an interim report to the Governor and General
Assembly upon the convening of the 2002
2004 Regular Session of the 2001
2003 General Assembly. The Commission shall terminate
on November 30, 2004."
CURRITUCK-COROLLA FERRY SERVICE FUNDS
SECTION 29.20. From funds available to the
Department of Transportation in this act, the Department may use
up to eight hundred thirty-four thousand dollars ($834,000) to
establish a new ferry service, on or before May 1, 2004, from
the Currituck terminal of the Currituck-Knotts Island ferry to
Corolla.
DEPARTMENT OF TRANSPORTATION PROJECT DELIVERY PROCESS STUDY
SECTION 29.21. The Joint Legislative Transportation
Oversight Committee shall contract with an independent
consultant to study the project delivery process of the
Department of Transportation. The study shall examine all
aspects of the project delivery process, including (i)
Department of Transportation planning, design, and contract
letting procedures, and (ii) the effect of other resource and
regulatory agency decisions and processes on the project
delivery process. The study shall identify all significant
causes of delay in the project delivery process, and suggest
specific, practical solutions to decrease the time it takes to
deliver a transportation project from inception to completion.
The Committee shall endeavor to complete this study by April 1,
2003. The provisions of G.S. 120-32.02 shall apply to any
contract with a consultant pursuant to this section.
USE HIGHWAY TRUST FUND TO MATCH FEDERAL-AID HIGHWAY FUNDS
SECTION 29.22. G.S. 136-176(b) reads as rewritten:
"(b)Funds in the Trust Fund are annually appropriated to the
Department of Transportation to be allocated and used as
provided in this subsection. A sum, not to exceed four and
one-half percent (4.5%) of the amount of revenue deposited in
the Trust Fund under subdivisions (a)(1), (2), and (3) of this
section, may be used each fiscal year by the Department for
expenses to administer the Trust Fund. Operation and project
development costs of the North Carolina Turnpike Authority are
eligible administrative expenses under this subsection. Any
funds allocated to the Authority pursuant to this subsection
shall be repaid by the Authority from its toll revenue as soon
as possible, subject to any restrictions included in the
agreements entered into by the Authority in connection with the
issuance of the Authority's revenue bonds. Beginning one year
after the Authority begins collecting tolls on a completed
Turnpike Project, interest shall accrue on any unpaid balance
owed to the Highway Trust Fund at a rate equal to the State
Treasurer's average annual yield on its investment of Highway
Trust Fund funds pursuant to G.S. 147-6.1. Interest earned on
the unpaid balance shall be deposited in the Highway Trust Fund
upon repayment. The sum up to the amount anticipated to be
necessary to meet the State matching funds requirements to
receive federal-aid highway trust funds for the next fiscal year
may be set aside for that purpose. The rest of the funds in
the Trust Fund shall be allocated and used as follows:
(1) Sixty-one and ninety-five hundredths percent
(61.95%) to plan, design, and construct the
projects of the Intrastate System described in G.S.
136-179 and to pay debt service on highway bonds
and notes that are issued under the State Highway
Bond Act of 1996 and whose proceeds are applied to
these projects.
(2) Twenty-five and five hundredths percent (25.05%) to
plan, design, and construct the urban loops
described in G.S. 136-180 and to pay debt service
on highway bonds and notes that are issued under
the State Highway Bond Act of 1996 and whose
proceeds are applied to these urban loops.
(3) Six and one-half percent (6.5%) to supplement the
appropriation to cities for city streets under G.S.
136-181.
(4) Six and one-half percent (6.5%) for secondary road
construction as provided in G.S. 136-182 and to pay
debt service on highway bonds and notes that are
issued under the State Highway Bond Act of 1996 and
whose proceeds are applied to secondary road
construction.
The Department must administer funds allocated under
subdivisions (1), (2), and (4) of this subsection in a manner
that ensures that sufficient funds are available to make the
debt service payments on bonds issued under the State Highway
Bond Act of 1996 as they become due."
RAIL CORRIDOR SUBDIVISIONS
SECTION 29.23.(a) G.S. 160A-376(3) reads as
rewritten:
"§ 160A-376. Definition.
For the purpose of this Part, "subdivision" means all
divisions of a tract or parcel of land into two or more lots,
building sites, or other divisions for the purpose of sale or
building development (whether immediate or future) and shall
include all divisions of land involving the dedication of a new
street or a change in existing streets; but the following shall
not be included within this definition nor be subject to the
regulations authorized by this Part:
...
(3) The public acquisition by purchase of strips of
land for the widening or opening of
streets; streets or for public
transportation system corridors; and
...."
SECTION 29.23.(b) G.S. 153A-335(3) reads as
rewritten:
"§ 153A-335. "Subdivision" defined.
For purposes of this Part, "subdivision" means all
divisions of a tract or parcel of land into two or more lots,
building sites, or other divisions for the purpose of sale or
building development (whether immediate or future) and includes
all division of land involving the dedication of a new street or
a change in existing streets; however, the following is not
included within this definition and is not subject to any
regulations enacted pursuant to this Part:
...
(3) The public acquisition by purchase of strips of
land for widening or opening streets or for
public transportation system corridors; and
...."
PART XXX. SALARIES AND EMPLOYEE BENEFITS
GOVERNOR AND COUNCIL OF STATE/NO SALARY INCREASES
SECTION 30.1.(a) For the 2003-2004 and 2004-2005
fiscal years, the salary of the Governor shall remain the amount
set by G.S. 147-11(a).
SECTION 30.1.(b) Effective July 1, 2003, the
annual salaries for the members of the Council of State, payable
monthly, for the 2003-2004 and 2004-2005 fiscal years are:
Council of State Annual Salary
Lieutenant Governor $104,523
Attorney General 104,523
Secretary of State 104,523
State Treasurer 104,523
State Auditor 104,523
Superintendent of Public Instruction 104,523
Agriculture Commissioner 104,523
Insurance Commissioner 104,523
Labor Commissioner 104,523
NONELECTED DEPARTMENT HEAD/NO SALARY INCREASES
SECTION 30.2. In accordance with G.S. 143B-9, the
maximum annual salaries, payable monthly, for the nonelected
heads of the principal State departments for the 2003-2004 and
2004-2005 fiscal years are:
Nonelected Department Heads Annual Salary
Secretary of Administration $102,119
Secretary of Correction 102,119
Secretary of Crime Control and Public Safety 102,119
Secretary of Cultural Resources 102,119
Secretary of Commerce 102,119
Secretary of Environment and Natural Resources102,119
Secretary of Health and Human Services 102,119
Secretary of Juvenile Justice and Delinquency Prevention
102,119
Secretary of Revenue 102,119
Secretary of Transportation 102,119
CERTAIN EXECUTIVE BRANCH OFFICIALS/NO SALARY INCREASES
SECTION 30.3. The annual salaries, payable monthly,
for the 2003-2004 and 2004-2005 fiscal years for the following
executive branch officials are:
Executive Branch Officials Annual Salary
Chairman, Alcoholic Beverage Control Commission$92,946
State Controller 130,078
Commissioner of Motor Vehicles 92,946
Commissioner of Banks 104,523
Chairman, Employment Security Commission 129,913
State Personnel Director 102,119
Chairman, Parole Commission 84,871
Members of the Parole Commission 78,356
Chairman, Utilities Commission 116,405
Members of the Utilities Commission 104,523
Executive Director, Agency for Public Telecommunications
78,356
General Manager, Ports Railway Commission 70,755
Director, Museum of Art 95,240
Executive Director, North Carolina Housing Finance Agency
115,031
Executive Director, North Carolina Agricultural Finance
Authority 90,470
State Chief Information Officer 130,000
JUDICIAL BRANCH OFFICIALS/NO SALARY INCREASES
SECTION 30.4.(a) The annual salaries, payable
monthly, for specified judicial branch officials for the
2003-2004 and 2004-2005 fiscal years are:
Judicial Branch Officials Annual Salary
Chief Justice, Supreme Court $118,430
Associate Justice, Supreme Court 115,336
Chief Judge, Court of Appeals 112,452
Judge, Court of Appeals 110,530
Judge, Senior Regular Resident Superior Court107,527
Judge, Superior Court 104,523
Chief Judge, District Court 94,912
Judge, District Court 91,909
Administrative Officer of the Courts 107,527
Assistant Administrative Officer of the Courts98,216
SECTION 30.4.(b) The district attorney or public
defender of a judicial district, with the approval of the
Administrative Officer of the Courts or the Commission on
Indigent Defense Services, respectively, shall set the salaries
of assistant district attorneys or assistant public defenders,
respectively, in that district such that the average salaries of
assistant district attorneys or assistant public defenders in
that district do not exceed sixty thousand one hundred
ninety-one dollars ($60,191), and the minimum salary of any
assistant district attorney or assistant public defender is at
least thirty-one thousand thirty-five dollars ($31,035),
effective July 1, 2003.
SECTION 30.4.(c) Permanent, full-time employees
of the Judicial Department, whose salaries are not itemized in
this Part, shall be awarded a compensation bonus for the
2003-2004 fiscal year as authorized in this Part.
CLERK OF SUPERIOR COURT SALARY INCREASES
SECTION 30.5. For the 2003-2004 and 2004-2005
fiscal years, the compensation of clerks of superior court shall
remain as set forth in G.S. 7A-101(a).
ASSISTANT AND DEPUTY CLERKS OF COURT/SALARY INCREASE
SECTION 30.6. For the 2003-2004 and 2004-2005 fiscal
years, the compensation of assistant and deputy clerks of
superior court shall remain as set forth in G.S. 7A-102(c1),
except that there shall be awarded to each clerk not receiving a
statutory step increase a compensation bonus for the 2003-2004
fiscal year as authorized in this Part.
MAGISTRATES' SALARY INCREASES
SECTION 30.7. For the 2003-2004 and 2004-2005
fiscal years, the compensation of magistrates shall remain as
set forth in G.S. 7A-171.1, except that there shall be awarded
to each magistrate not receiving a statutory step increase a
compensation bonus for the 2003-2004 fiscal year as authorized
in this Part.
GENERAL ASSEMBLY PRINCIPAL CLERKS
SECTION 30.8. For the 2003-2004 and 2004-2005 fiscal
years, the compensation of General Assembly principal clerks
shall remain as set forth in G.S. 120-37, except that there
shall be awarded a compensation bonus for the 2003-2004 fiscal
year as authorized in this Part.
SERGEANT-AT-ARMS AND READING CLERKS
SECTION 30.9. For the 2003-2004 and 2004-2005
fiscal years, the compensation of General Assembly
sergeant-at-arms and reading clerks shall remain as set forth in
G.S. 120-37.
LEGISLATIVE EMPLOYEES
SECTION 30.10. The salaries of nonelected employees
of the General Assembly shall remain in effect, and the
Legislative Services Officer shall award a compensation bonus
for the 2003-2004 fiscal year as authorized in this Part.
Nothing in this act limits any of the provisions of G.S. 120-32.
COMMUNITY COLLEGES PERSONNEL
SECTION 30.11. The Director of the Budget shall
transfer to the North Carolina Community College System Office
from the Reserve for Compensation Increases created in this act
for fiscal year 2003-2004 funds necessary to provide a
compensation bonus as authorized by this Part for all permanent
full-time community college institutional personnel supported by
State funds.
UNIVERSITY OF NORTH CAROLINA SYSTEM/EPA COMPENSATION
SECTION 30.12.(a) The Director of the Budget shall
transfer to the Board of Governors of The University of North
Carolina sufficient funds from the Reserve for Compensation
Increases, created in this act for fiscal year 2003-2004, to
fund the compensation bonus authorized by this Part for
University employees, other than teachers at the North Carolina
School of Science and Mathematics, supported by State funds and
whose salaries are exempt from the State Personnel Act (EPA).
SECTION 30.12.(b) The Director of the Budget
shall transfer to the Board of Governors of The University of
North Carolina sufficient funds from the Reserve for
Compensation Increases, created in this act for fiscal years
2003-2004 and 2004-2005, to provide an average annual salary
increase of one and eighty-one hundredths percent (1.81%),
including funds for the employer's retirement and social
security contributions, commencing July 1, 2003, for all
teaching employees of the North Carolina School of Science and
Mathematics supported by State funds and whose salaries are
exempt from the State Personnel Act (EPA). These funds shall be
allocated to individuals according to the rules adopted by the
Board of Trustees of the North Carolina School of Science and
Mathematics and may not be used for any purpose other than for
salary increases and necessary employer contributions provided
by this section.
COMPENSATION BONUS FOR FISCAL YEAR 2003-2004
SECTION 30.12A.(a) Except as provided by subsection
(b) of this section, any person (i) whose salary is set pursuant
to the State Personnel Act or under this Part and (ii) who is
employed in a State-funded position on October 1, 2003, shall be
awarded a one-time, lump-sum compensation bonus for the
2003-2004 fiscal year in the amount of five hundred fifty
dollars ($550.00). The compensation bonus shall be adjusted pro
rata for permanent part-time employees. The Director of the
Budget shall transfer sufficient funds from the Reserve for
Compensation Increases provided in this act to implement this
section. The compensation bonus awarded by this section shall
not be administered under G.S. 126-7. The compensation bonus
shall be awarded to eligible employees without regard to an
employee's placement within the salary range, including
employees at the top of the salary range.
SECTION 30.12A.(b) The following persons shall
not be eligible for the compensation bonus authorized by this
section:
(1) Any person whose salary is set under Sections 30.1,
30.2, 30.3, 30.4(a), 30.5, and 30.12(b) of this
act.
(2) Any public school employee or State employee paid
on the Teacher Salary Schedule or the School Based
Administrator Salary Schedule.
(3) Any assistant or deputy clerks of superior court
receiving a statutory step increase under G.S.
7A-102(c1) for the 2003-2004 fiscal year.
(4) Any magistrate receiving a statutory step increase
under G.S. 7A-171.1 for the 2003-2004 fiscal year.
(5) Any person receiving automatic increases under G.S.
20-187.3 for the 2003-2004 fiscal year.
SPECIAL ANNUAL LEAVE BONUS
SECTION 30.12B.(a) Except as provided by subsection
(b) of this section, effective July 1, 2003, any person (i) who
is a full-time permanent employee of the State, a community
college institution, or a local board of education and (ii) who
is eligible to earn annual leave shall have a one-time
additional 10 days of annual leave credited on that date. The
additional leave shall be accounted for either separately or
together with the leave provided by Section 28.3A of S.L.
2002-126. Part-time permanent employees shall receive a pro rata
amount of the 10 days.
SECTION 30.12B.(b) The following persons are not
eligible to receive the special annual leave bonus authorized by
this section:
(1) Any employee or officer who does not earn annual
leave.
(2) Employees who receive during the 2003-2004 fiscal
year an automatic or step increase under G.S.
7A-102(c), 7A-171.1, or 20-187.3.
(3) Any public school employee or State employee paid
on the Teacher Salary Schedule or the School Based
Administrator Salary Schedule.
MOST STATE EMPLOYEES
SECTION 30.13.(a) The salaries in effect June 30,
2003, of all permanent full-time State employees whose salaries
are set in accordance with the State Personnel Act, and who are
paid from the General Fund or the Highway Fund shall remain in
effect for the 2003-2004 and 2004-2005 fiscal years, and there
shall be awarded a compensation bonus for the 2003-2004 fiscal
year as authorized in this Part.
SECTION 30.13.(b) Except as otherwise provided
in this act, the compensation of permanent full-time State
officials and persons in exempt positions that are recommended
by the Governor or the Governor and the Advisory Budget
Commission and set by the General Assembly shall remain in
effect, and there shall be awarded a compensation bonus for the
2003-2004 fiscal year as authorized in this Part.
SECTION 30.13.(c) The salaries of all permanent
part-time State employees shall remain in effect, and there
shall be awarded a compensation bonus for the 2003-2004 fiscal
year as authorized in this Part.
SECTION 30.13.(d) The Director of the Budget may
allocate out of special operating funds or from other sources of
the employing agency, except tax revenues, sufficient funds for
salaries in accordance with subsection (a), (b), or (c) of this
section including funds for the employer's retirement and social
security contributions, for the permanent full-time and
part-time employees of the agency, provided the employing agency
elects to make available the necessary funds.
ALL STATE-SUPPORTED PERSONNEL
SECTION 30.14.(a) Salaries and related benefits for
positions that are funded partially from the General Fund or
Highway Fund and partially from sources other than the General
Fund or Highway Fund shall remain in effect and be paid from the
General Fund or Highway Fund appropriation only to the extent of
the proportionate part of the salaries paid from the General
Fund or Highway Fund.
SECTION 30.14.(b) The salaries authorized under
this act do not affect the status of eligibility for salary
increments for which employees may be eligible unless otherwise
required by this act.
SECTION 30.14.(c) The compensation bonuses do
not apply to persons separated from State service due to
resignation, dismissal, reduction in force, death, or
retirement, or whose last workday is prior to October 1, 2003.
This subsection shall apply to all employees, subject to or
exempt from the State Personnel Act, paid from State funds,
including public schools, community colleges, and The University
of North Carolina.
SECTION 30.14.(d) The Director of the Budget
shall transfer from the Reserve for Compensation Increases in
this act for fiscal year 2003-2004 all funds necessary for the
compensation increases provided by this act, including funds for
the employer's retirement and social security contributions.
SECTION 30.14.(e) Nothing in this act authorizes
the transfer of funds between the General Fund and the Highway
Fund for salary increases.
EMPLOYEES MAY VOLUNTARILY SHARE LEAVE WITH A COWORKER'S
IMMEDIATE FAMILY MEMBER
SECTION 30.14A.(a) Effective July 1, 2003,
G.S. 126-8.3, as amended by S.L. 2003-9, reads as rewritten:
"§ 126-8.3. Voluntary shared leave.
The State Personnel Commission, in cooperation with the
State Board of Community Colleges and the State Board of
Education, shall adopt rules and policies to allow any employee
at a State agency to share leave voluntarily with an immediate
family member who is an employee of a State agency, community
college, or public school. school;
and with a coworker's immediate family member who is an employee
of a State agency, community college, or public school. For
the purposes of this section, the term "immediate family member"
means a spouse, parent, child, brother, sister, grandparent, or
grandchild. The term includes the step, half, and in-law
relationships. The term "coworker" means that the employee
donating the leave is employed by the same agency, department,
institution, university, local school administrative unit, or
community college as the employee whose immediate family member
is receiving the leave."
SECTION 30.14A.(b) Effective July 1, 2003, G.S.
115C-12.2, as amended by S.L. 2003-9, reads as rewritten:
"§ 115C-12.2. Voluntary shared leave.
The State Board of Education, in cooperation with the
State Board of Community Colleges and the State Personnel
Commission, shall adopt rules and policies to allow any employee
at a public school to share leave voluntarily with an immediate
family member who is an employee of a public school, community
college, or State agency. agency; and with a
coworker's immediate family member who is an employee of a
public school, community college, or State agency. For the
purposes of this section, the term "immediate family member"
means a spouse, parent, child, brother, sister, grandparent, or
grandchild. The term includes the step, half, and in-law
relationships. The term "coworker" means that the employee
donating the leave is employed by the same agency, department,
institution, university, local school administrative unit, or
community college as the employee whose immediate family member
is receiving the leave."
SECTION 30.14A.(c) Effective July 1, 2003, G.S.
115D-25.3, as enacted by S.L. 2003-9, reads as rewritten:
"§ 115D-25.3. Voluntary shared leave.
The State Board of Community Colleges, in cooperation
with the State Board of Education and the State Personnel
Commission, shall adopt rules and policies to allow any employee
at a community college to share leave voluntarily with an
immediate family member who is an employee of a community
college, public school, or State agency.
agency; and with a coworker's immediate family
member who is an employee of a community college, public school,
or State agency. For the purposes of this section, the term
"immediate family member" means a spouse, parent, child,
brother, sister, grandparent, or grandchild. The term includes
the step, half, and in-law relationships. The term "coworker"
means that the employee donating the leave is employed by the
same agency, department, institution, university, local school
administrative unit, or community college as the employee whose
immediate family member is receiving the leave."
CLERK OF COURT PERSONNEL FLEXIBILITY
SECTION 30.14B. G.S. 7A-102 reads as rewritten:
"§ 7A-102. Assistant and deputy clerks; appointment; number;
salaries; duties.
(a)The numbers and salaries of assistant clerks, deputy
clerks, and other employees in the office of each clerk of
superior court shall be determined by the Administrative Officer
of the Courts after consultation with the clerk concerned. All
personnel in the clerk's office are employees of the State. The
clerk appoints the assistants, deputies, and other employees in
his the clerk's office to serve at his
or her pleasure. Assistant and deputy clerks shall take
the oath of office prescribed for clerks of superior court,
conformed to the office of assistant or deputy clerk, as the
case may be. The Except as provided by
subsection (c2) of this section, the job classifications and
related salaries of each employee within the office of each
superior court clerk shall be subject to the approval of the
Administrative Officer of the Courts after consultation with
each clerk concerned and shall be subject to the availability of
funds appropriated for that purpose by the General Assembly.
(b) An assistant clerk is authorized to perform all the
duties and functions of the office of clerk of superior court,
and any act of an assistant clerk is entitled to the same faith
and credit as that of the clerk. A deputy clerk is authorized to
certify the existence and correctness of any record in the
clerk's office, to take the proofs and examinations of the
witnesses touching the execution of a will as required by G.S.
31-17, and to perform any other ministerial act which the clerk
may be authorized and empowered to do, in his own name and
without reciting the name of his principal. The clerk is
responsible for the acts of his assistants and deputies. With
the consent of the clerk of superior court of each county and
the consent of the presiding judge in any proceeding, an
assistant or deputy clerk is authorized to perform all the
duties and functions of the office of the clerk of superior
court in another county in any proceeding in the district or
superior court that has been transferred to that county from the
county in which the assistant or deputy clerk is employed.
(c) Notwithstanding the provisions of subsection (a), the
Administrative Officer of the Courts shall establish an
incremental salary plan for assistant clerks and for deputy
clerks based on a series of salary steps corresponding to the
steps contained in the Salary Plan for State Employees adopted
by the Office of State Personnel, subject to a minimum and a
maximum annual salary as set forth below. On and after July 1,
1985, each assistant clerk and each deputy clerk shall be
eligible for an annual step increase in his salary plan based on
satisfactory job performance as determined by each clerk.
Notwithstanding the foregoing, if an assistant or deputy clerk's
years of service in the office of superior court clerk would
warrant an annual salary greater than the salary first
established under this section, that assistant or deputy clerk
shall be eligible on and after July 1, 1984, for an annual step
increase in his salary plan. Furthermore, on and after July 1,
1985, that assistant or deputy clerk shall be eligible for an
increase of two steps in his salary plan, and shall remain
eligible for a two-step increase each year as recommended by
each clerk until that assistant or deputy clerk's annual salary
corresponds to his number of years of service. Any person
covered by this subsection who would not receive a step increase
in fiscal year 1995-96 because that person is at the top of the
salary range as it existed for fiscal year 1994-95 shall receive
a salary increase to the maximum annual salary provided by
subsection (c1) of this section.
(c1)A full-time assistant clerk or a full-time deputy clerk,
and up to one full-time deputy clerk serving as head bookkeeper
per county, shall be paid an annual salary subject to the
following minimum and maximum rates:
Assistant Clerks and Head BookkeeperAnnual Salary
Minimum $26,515
Maximum 46,464
Deputy Clerks Annual Salary
Minimum $22,565
Maximum 35,934.
(c2) The clerk of superior court may appoint
assistant clerks, deputy clerks, and a head bookkeeper and set
their salaries above the minimum rate established for the
positions by subsection (c1) of this section if, in the clerk's
discretion, (i) the needs of the clerk's office would be best
served by an appointment above the minimum rate, (ii) the
appointee's skills and experience support the higher rate, and
(iii) the Administrative Office of the Courts certifies that
there are sufficient funds available.
(d) Full-time assistant clerks, licensed to practice law in
North Carolina, who are employed in the office of superior court
clerk on and after July 1, 1984, and full-time assistant clerks
possessing a masters degree in business administration, public
administration, accounting, or other similar discipline from an
accredited college or university who are employed in the office
of superior court clerk on and after July 1, 1997, are
authorized an annual salary of not less than three-fourths of
the maximum annual salary established for assistant clerks; the
clerk of superior court, with the approval of the Administrative
Office of the Courts, may establish a higher annual salary but
that salary shall not be higher than the maximum annual salary
established for assistant clerks. Full-time assistant clerks,
holding a law degree from an accredited law school, who are
employed in the office of superior court clerk on and after July
1, 1984, are authorized an annual salary of not less than
two-thirds of the maximum annual salary established for
assistant clerks; the clerk of superior court, with the approval
of the Administrative Office of the Courts, may establish a
higher annual salary, but the entry-level salary may not be more
than three-fourths of the maximum annual salary established for
assistant clerks, and in no event may be higher than the maximum
annual salary established for assistant clerks. The
Except as provided by subsection (c2) of this
section, the entry-level annual salary for all other
assistant and deputy clerks employed on and after July 1, 1984,
shall be at the minimum rates as herein established.
(e) A clerk of superior court may apply to the Director of
the Administrative Office of the Courts to enter into contracts
with local governments for the provision by the State of
services of assistant clerks, deputy clerks, and other employees
in the office of each clerk of superior court pursuant to G.S.
153A-212.1 or G.S. 160A-289.1.
(f) The Director of the Administrative Office of the Courts
may provide assistance requested pursuant to subsection (e) of
this section only upon a showing by the senior resident superior
court judge, supported by facts, that the overwhelming public
interest warrants the use of additional resources for the speedy
disposition of cases involving drug offenses, domestic violence,
or other offenses involving a threat to public safety.
(g) The terms of any contract entered into with local
governments pursuant to subsection (e) of this section shall be
fixed by the Director of the Administrative Office of the Courts
in each case. Nothing in this section shall be construed to
obligate the General Assembly to make any appropriation to
implement the provisions of this section or to obligate the
Administrative Office of the Courts to provide the
administrative costs of establishing or maintaining the
positions or services provided for under this section. Further,
nothing in this section shall be construed to obligate the
Administrative Office of the Courts to maintain positions or
services initially provided for under this section."
STATE AGENCY TEACHERS' COMPENSATION
SECTION 30.14C. Funds in the Reserve for
Compensation Increases shall be used for experience step
increases for employees of schools operated by the Department of
Health and Human Services, the Department of Correction, or the
Department of Juvenile Justice and Delinquency Prevention, who
are paid on the Teacher Salary Schedule or the School Based
Administrator Salary Schedule.
STUDY COMPENSATION OF CERTAIN HIGH-LEVEL OFFICERS
SECTION 30.15. The Office of State Personnel (OSP)
and the Office of State Budget and Management (OSBM) shall study
jointly the relative compensation of members of the Council of
State, State department heads, and other high-ranking elected
and nonelected public officials whose salaries are set by the
General Assembly to determine whether the officers are being
compensated at rates in accordance with:
(1) The officer's scope of responsibilities and span of
control.
(2) The critical nature of the officer's department,
agency, institution, or function.
(3) The relative size of the operations and budget
under the officer's direct control.
(4) The required credentials, knowledge, and experience
necessary to competently manage the officer's
organization or function.
In conducting this study, the OSP and OSBM shall focus
on the relative compensation among these various officers to
determine the appropriate salary levels for the officers given
the factors identified in this section. By April 1, 2004, OSP
and OSBM shall report their findings and recommendations to the
Joint Legislative Commission on Governmental Operations.
TEMPORARY SALES TAX TRANSFER FOR WILDLIFE RESOURCES
COMMISSION COMPENSATION BONUS
SECTION 30.15A. For the 2003-2004 fiscal year only,
the Secretary of Revenue shall transfer at the end of the first
quarter from the State sales and use tax collections received by
the Department of Revenue under Article 5 of Chapter 105 of the
General Statutes to the State Treasurer for the Wildlife
Resources Fund to fund the cost of a one-time, lump sum
compensation bonus in the amount of five hundred fifty dollars
($550.00) for employees of the Wildlife Resources Commission, as
authorized in this Part.
SALARY-RELATED CONTRIBUTIONS/EMPLOYER
SECTION 30.16.(a) Required employer salary-related
contributions for employees whose salaries are paid from
department, office, institution, or agency receipts shall be
paid from the same source as the source of the employees'
salary. If an employee's salary is paid in part from the
General Fund or Highway Fund and in part from department,
office, institution, or agency receipts, required employer
salary-related contributions may be paid from the General Fund
or Highway Fund only to the extent of the proportionate part
paid from the General Fund or Highway Fund in support of the
salary of the employee, and the remainder of the employer's
requirements shall be paid from the source that supplies the
remainder of the employee's salary. The requirements of this
section as to source of payment are also applicable to payments
on behalf of the employee for hospital-medical benefits,
longevity pay, unemployment compensation, accumulated leave,
workers' compensation, severance pay, separation allowances, and
applicable disability income benefits.
SECTION 30.16.(b) Effective July 1, 2003, the
State's employer contribution rates budgeted for retirement and
related benefits as percentage of covered salaries for the
2003-2004 fiscal year are (i) three and forty-two hundredths
percent (3.42%) - Teachers and State Employees; (ii) eight and
forty-two hundredths percent (8.42%) - State Law Enforcement
Officers; (iii) ten and four hundredths percent (10.04%) -
University Employees' Optional Retirement System; (iv) ten and
four hundredths percent (10.04%) - Community College Optional
Retirement Program; (v) fifteen and twelve hundredths percent
(15.12%) - Consolidated Judicial Retirement System; and (vi)
three and twenty hundredths percent (3.20%) - Legislative
Retirement System. Each of the foregoing contribution rates
includes three and twenty hundredths percent (3.20%) for
hospital and medical benefits. The rate for State Law
Enforcement Officers includes five percent (5%) for Supplemental
Retirement Income.
SECTION 30.16.(c) Effective July 1, 2004, the
State's employer contribution rates budgeted for retirement and
related benefits as percentage of covered salaries for the
2004-2005 fiscal year are (i) five and seventy-seven hundredths
percent (5.77%) - Teachers and State Employees; (ii) ten and
seventy-seven hundredths percent (10.77%) - State Law
Enforcement Officers; (iii) ten and fifty-six hundredths percent
(10.56%) - University Employees' Optional Retirement System;
(iv) ten and fifty-six hundredths percent (10.56%) - Community
College Optional Retirement Program; (v) fifteen and twelve
hundredths percent (15.12%) - Consolidated Judicial Retirement
System; and (vi) three and twenty hundredths percent (3.20%) -
Legislative Retirement System. Each of the foregoing
contribution rates includes three and twenty hundredths percent
(3.20%) for hospital and medical benefits. The rate for Teachers
and State Employees, State Law Enforcement Officers, the
Community College Optional Retirement Program, and the
University Employees' Optional Retirement Program includes
fifty-two hundredths percent (0.52%) for the Disability Income
Plan. The rate for State Law Enforcement Officers includes five
percent (5%) for Supplemental Retirement Income.
SECTION 30.16.(d) The maximum annual employer
contributions, payable monthly, by the State for each covered
employee or retiree for the 2003-2004 fiscal year to the
Teachers' and State Employees' Comprehensive Major Medical Plan
are: (i) Medicare-eligible employees and retirees - two
thousand five hundred eighteen dollars ($2,518) and (ii)
non-Medicare-eligible employees and retirees - three thousand
three hundred seven dollars ($3,307).
SECTION 30.16.(e) The maximum annual employer
contributions, payable monthly, by the State for each covered
employee or retiree for the 2004-2005 fiscal year to the
Teachers' and State Employees' Comprehensive Major Medical Plan
are: (i) Medicare-eligible employees and retirees - two
thousand six hundred twelve dollars ($2,612) and (ii)
non-Medicare-eligible employees and retirees - three thousand
four hundred thirty-two dollars ($3,432).
RETIREMENT COLAS
SECTION 30.17.(a) G.S. 135-5 is amended by adding a
new subsection to read:
"(lll) From and after July 1, 2003, the
retirement allowance to or on account of beneficiaries whose
retirement commenced on or before July 1, 2002, shall be
increased by one and twenty-eight hundredths percent (1.28%) of
the allowance payable on June 1, 2003, in accordance with G.S.
135-5(o). Furthermore, from and after July 1, 2003, the
retirement allowance to or on account of beneficiaries whose
retirement commenced after July 1, 2002, but before June 30,
2003, shall be increased by a prorated amount of one and twenty-
eight hundredths percent (1.28%) of the allowance payable as
determined by the Board of Trustees based upon the number of
months that a retirement allowance was paid between July 1,
2002, and June 30, 2003."
SECTION 30.17.(b) G.S. 135-65 is amended by
adding a new subsection to read:
"(x) From and after July 1, 2003, the retirement
allowance to or on account of beneficiaries whose retirement
commenced on or before July 1, 2002, shall be increased by one
and twenty-eight hundredths percent (1.28%) of the allowance
payable on June 1, 2003. Furthermore, from and after July 1,
2003, the retirement allowance to or on account of beneficiaries
whose retirement commenced after July 1, 2002, but before June
30, 2003, shall be increased by a prorated amount of one and
twenty-eight hundredths percent (1.28%) of the allowance payable
as determined by the Board of Trustees based upon the number of
months that a retirement allowance was paid between July 1,
2002, and June 30, 2003."
SECTION 30.17.(c) G.S. 120-4.22A is amended by
adding a new subsection to read:
"(r) In accordance with subsection (a) of this
section, from and after July 1, 2003, the retirement allowance
to or on account of beneficiaries whose retirement commenced on
or before January 1, 2003, shall be increased by one and twenty-
eight hundredths percent (1.28%) of the allowance payable on
June 1, 2003. Furthermore, from and after July 1, 2003, the
retirement allowance to or on account of beneficiaries whose
retirement commenced after January 1, 2003, but before June 30,
2003, shall be increased by a prorated amount of one and twenty-
eight hundredths percent (1.28%) of the allowance payable as
determined by the Board of Trustees based upon the number of
months that a retirement allowance was paid between January 1,
2003, and June 30, 2003."
TRANSFER OF SERVICE IN THE LEGISLATIVE RETIREMENT SYSTEM TO
THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM AND THE
JUDICIAL RETIREMENT SYSTEM
SECTION 30.18.(a) G.S. 120-4.13 reads as rewritten:
"§ 120-4.13. Transfer of membership and benefits.
(a) The Board of Trustees shall set up
procedures to transfer membership from the Legislative
Retirement Fund to the Retirement System and to recompute
benefits paid to retirees of the Legislative Retirement Fund who
elect to transfer to the Retirement System.
(b) The accumulated contributions and creditable
service of any member whose service as a member of the General
Assembly has been or is terminated other than by retirement or
death and who, while still a member of this Retirement System,
became or becomes a member, as defined in G.S. 135-1(13), of the
Teachers' and State Employees' Retirement System for a period of
five or more years may, upon application of the member, be
transferred from this Retirement System to the Teachers' and
State Employees' Retirement System. In order to effect the
transfer of a member's creditable service from the Legislative
Retirement System to the Teachers' and State Employees'
Retirement System, there shall be transferred from the
Legislative Retirement System to the Teachers' and State
Employees' Retirement System the sum of (i) the accumulated
contributions of the member credited in the annuity savings fund
and (ii) the amount of reserve held in the Legislative
Retirement System as a result of previous contributions by the
employer on behalf of the transferring member.
(c) The accumulated contributions and creditable
service of any member whose service as a member of the General
Assembly has been or is terminated other than by retirement or
death and who, while still a member of this Retirement System,
became or becomes a member, as defined in G.S. 135-53(11), of
the Consolidated Judicial Retirement System for a period of five
or more years may, upon application of the member, be
transferred from this Retirement System to the Consolidated
Judicial Retirement System. In order to effect the transfer of a
member's creditable service from the Legislative Retirement
System to the Consolidated Judicial Retirement System, there
shall be transferred from the Legislative Retirement System to
the Consolidated Judicial Retirement System the sum of (i) the
accumulated contributions of the member credited in the annuity
savings fund and (ii) the amount of reserve held in the
Legislative Retirement System as a result of previous
contributions by the employer on behalf of the transferring
member."
SECTION 30.18.(b) G.S. 135-4 is amended by
adding a new subsection to read:
"(j2)The creditable service of a member who was a
member of the Local Governmental Employees' Retirement System,
the Consolidated Judicial Retirement System, or the Legislative
Retirement System, and whose accumulated contributions and
reserves are transferred from that System to this System,
includes service that was creditable in the Local Governmental
Employees' Retirement System, the Consolidated Judicial
Retirement System, or the Legislative Retirement System, and
membership service with those Retirement Systems is membership
service with this Retirement System."
SECTION 30.18.(c) Article 1 of Chapter 135 of
the General Statutes is amended by adding a new section to read:
"§ 135-18.9. Transfer of members from the Legislative
Retirement System or the Consolidated Judicial
Retirement System.
(a) The accumulated contributions, creditable
service, and reserves, if any, of a member of the Legislative
Retirement System, as provided for in Article 1A of G.S. 120, or
the Consolidated Judicial Retirement System, as provided for in
Article 4 of G.S. 135, who later becomes a member of the
Teachers' and State Employees' Retirement System for a period of
five or more years may, upon application of the member, be
transferred from the Legislative Retirement System or the
Consolidated Judicial Retirement System. The accumulated
contributions, creditable service, and reserves of any member
whose service as a member of the Legislative Retirement System
or the Consolidated Judicial Retirement System is terminated
other than by retirement or death and who later becomes a member
of the Teachers' and State Employees' Retirement System may,
upon application of the member, be transferred from the
Legislative Retirement System or the Consolidated Judicial
Retirement System to the Teachers' and State Employees'
Retirement System. In order to effect the transfer of a member's
creditable service from the Legislative Retirement System or the
Consolidated Judicial Retirement System to the Teachers' and
State Employees' Retirement System, the accumulated
contributions of each member credited in the annuity savings
fund in the Legislative Retirement System or the Consolidated
Judicial Retirement System shall be transferred and credited to
the annuity savings fund in the Teachers' and State Employees'
Retirement System.
(b) The Board of Trustees shall effect such rules
as it may deem necessary to administer subsection (a) of this
section and to prevent any duplication of service credits or
benefits that might otherwise occur."
SECTION 30.18.(d) G.S. 135-70 is amended by
adding a new subsection to read:
"(a1)The accumulated contributions and creditable
service of any member whose service as a member of this
Retirement System has been or is terminated other than by
retirement or death and who, while still a member of this
Retirement System, became or becomes a member, as defined in
G.S. 135-1(13), of the Teachers' and State Employees' Retirement
System for a period of five or more years may, upon application
of the member, be transferred from this Retirement System to the
Teachers' and State Employees' Retirement System. In order to
effect the transfer of a member's creditable service from this
Retirement System to the Teachers' and State Employees'
Retirement System, there shall be transferred from this
Retirement System to the Teachers' and State Employees'
Retirement System the sum of (i) the accumulated contributions
of the member credited in the annuity savings fund and (ii) the
amount of reserve held in this Retirement System as a result of
previous contributions by the employer on behalf of the
transferring member."
SECTION 30.18.(e) G.S. 135-70.1 reads as
rewritten:
"§ 135-70.1. Transfer of members from the Local Governmental
Employees' Retirement System or
System, the Teachers' and State
Employees' Retirement System.
System, or the Legislative Retirement System.
"(a) The accumulated contributions, creditable
service, and reserves, if any, of a former teacher or employee,
as defined in G.S. 135-1(25), 135-1(10), and 128-21(10),
respectively, or a former member of the General Assembly
who is a member of the Consolidated Judicial Retirement System
for a period of five or more years may, upon application of the
member, be transferred from the Local Governmental Employees'
Retirement System or System, the
Teachers' and State Employees' Retirement System
System, or the Legislative Retirement System to
the Consolidated Judicial Retirement System. The accumulated
contributions, creditable service, and reserves of any member
whose service as a teacher or employee or member of the
General Assembly is terminated other than by retirement or
death and who becomes a member of the Consolidated Judicial
Retirement System may, upon application of the member, be
transferred from the Local Governmental Employees' Retirement
System or System, the Teachers' and
State Employees' Retirement System System,
or the Legislative Retirement System to the Consolidated
Judicial Retirement System. In order to effect the transfer of a
member's creditable service from the Local Governmental
Retirement System or System, the
Teachers' and State Employees' Retirement
System System, or the Legislative Retirement
System, to the Consolidated Judicial Retirement System, the
accumulated contributions of each member credited in the annuity
savings fund in the Local Governmental Employees' Retirement
System or System, the Teachers' and
State Employees' Retirement System System,
or the Legislative Retirement System shall be transferred
and credited to the annuity savings fund in the Consolidated
Judicial Retirement System.
(b) The Board of Trustees shall effect such rules as it may
deem necessary to administer the preceding subsection and to
prevent any duplication of service credits or benefits that
might otherwise occur."
SECTION 30.18.(f) G.S. 135-56(f) reads as
rewritten:
"(f)The creditable service of a member who was a member of
the Local Governmental Employees' Retirement System
or System, the Teachers' and State Employees'
Retirement System System, or the Legislative
Retirement System and whose accumulated contributions and
reserves are transferred from that System to this System,
includes service that was creditable in the Local Governmental
Employees' Retirement System or System,
the Teachers' and State Employees' Retirement System, or the
Legislative Retirement System, and membership service with
those Retirement Systems is membership service with this
Retirement System."
SECTION 30.18.(g) G.S. 135-58(a3) reads as
rewritten:
"(a3) Any member who retires under the provisions of G.S.
135-57(a) or G.S. 135-57(c) on or after July 1, 2001, but
before January 1, 2004, after the member has either attained
the member's 65th birthday or has completed 24 years or more of
creditable service, shall receive an annual retirement
allowance, payable monthly, which shall commence on the
effective date of the member's retirement and shall be continued
on the first day of each month thereafter during the member's
lifetime, the amount of which shall be computed as the sum of
the amounts in subdivisions (1), (2), (3), (4), and (5)
following, provided that in no event shall the annual allowance
payable to any member be greater than an amount which, when
added to the allowance, if any, to which the member is entitled
under the Teachers' and State Employees' Retirement System, the
Legislative Retirement System, or the Local Governmental
Employees' Retirement System (prior in any case to any reduction
for early retirement or for an optional mode of payment) would
total three-fourths of the member's final compensation:
(1) Four and two-hundredths percent (4.02%) of the
member's final compensation, multiplied by the
number of years of creditable service rendered as a
justice of the Supreme Court or judge of the Court
of Appeals;
(2) Three and fifty-two hundredths percent (3.52%) of
the member's final compensation, multiplied by the
number of years of creditable service rendered as a
judge of the superior court or as Administrative
Officer of the Courts;
(3) Three and two-hundredths percent (3.02%) of the
member's final compensation, multiplied by the
number of years of creditable service, rendered as
a judge of the district court, district attorney,
or clerk of superior court;
(4) A service retirement allowance computed in
accordance with the service retirement provisions
of Article 3 of Chapter 128 of the General Statutes
using an average final compensation as defined in
G.S. 135-53(2a) and creditable service equal to the
number of years of the member's creditable service
that was transferred from the Local Governmental
Employees' Retirement System to this System as
provided in G.S. 135-56; and
(5) A service retirement allowance computed in
accordance with the service retirement provisions
of Article 1 of this Chapter using an average final
compensation as defined in G.S. 135-53(2a) and
creditable service, including any sick leave
standing to the credit of the member, equal to the
number of years of the member's creditable service
that was transferred from the Teachers' and State
Employees' Retirement System to this System as
provided in G.S. 135-56."
SECTION 30.18.(h) G.S. 135-58 is amended by
adding a new subsection to read:
"(a4)Any member who retires under the provisions of
G.S. 135-57(a) or G.S. 135-57(c) on or after January 1, 2004,
after the member has either attained the member's 65th birthday
or has completed 24 years or more of creditable service, shall
receive an annual retirement allowance, payable monthly, which
shall commence on the effective date of the member's retirement
and shall be continued on the first day of each month thereafter
during the member's lifetime, the amount of which shall be
computed as the sum of the amounts in subdivisions (1), (2),
(3), (4), and (5) of this subsection, provided that in no event
shall the annual allowance payable to any member be greater than
an amount which, when added to the allowance, if any, to which
the member is entitled under the Teachers' and State Employees'
Retirement System, the Legislative Retirement System, or the
Local Governmental Employees' Retirement System (prior in any
case to any reduction for early retirement or for an optional
mode of payment), would total three-fourths of the member's
final compensation:
(1) Four and two hundredths percent
(4.02%) of the member's final compensation,
multiplied by the number of years of creditable
service rendered as a justice of the Supreme Court
or judge of the Court of Appeals;
(2) Three and fifty-two hundredths percent
(3.52%) of the member's final compensation,
multiplied by the number of years of creditable
service rendered as a judge of the superior court
or as Administrative Officer of the Courts;
(3) Three and two hundredths percent
(3.02%) of the member's final compensation,
multiplied by the number of years of creditable
service rendered as a judge of the district court,
district attorney, or clerk of superior court;
(4) A service retirement allowance
computed in accordance with the service retirement
provisions of Article 3 of Chapter 128 of the
General Statutes using an average final
compensation as defined in G.S. 135-53(2a) and
creditable service equal to the number of years of
the member's creditable service that was
transferred from the Local Governmental Employees'
Retirement System to this System as provided in
G.S. 135-56; and
(5) A service retirement allowance
computed in accordance with the service retirement
provisions of Article 1 of this Chapter of the
General Statutes using an average final
compensation as defined in G.S. 135-53(2a) and
creditable service, including any sick leave
standing to the credit of the member, equal to the
number of years of the member's creditable service
that was transferred from the Teachers' and State
Employees' Retirement System or the Legislative
Retirement System to this System as provided in
G.S. 135-56."
SECTION 30.18.(i) The Retirement Systems
Division of the Department of State Treasurer and the Board of
Trustees of the Teachers' and State Employees' Retirement System
shall study the feasibility and cost implications of applying
the provisions of this section to present retirees of the
Legislative Retirement System. The Retirement Systems Division
of the Department of State Treasurer and the Board of Trustees
of the Teachers' and State Employees' Retirement System shall
submit a report to the General Assembly no later than April 1,
2004, on their findings and recommendations.
SECTION 30.18.(j) This section becomes effective
January 1, 2004.
INCREASE THE AMOUNT OF THE DEATH BENEFIT PAID WHEN A LAW
ENFORCEMENT OFFICER, FIREFIGHTER, RESCUE SQUAD WORKER, OR
SENIOR CIVIL AIR PATROL MEMBER IS KILLED IN THE LINE OF DUTY
AND PROVIDE THAT THE DEATH OF A FIREMAN BY HEART ATTACK WHILE
ON DUTY OR WITHIN TWENTY-FOUR HOURS AFTER PARTICIPATING IN A
TRAINING EXERCISE OR RESPONDING TO AN EMERGENCY SITUATION IS
A QUALIFYING EVENT
SECTION 30.18A.(a) G.S. 143-166.3 reads as
rewritten:
"§ 143-166.3. Payments; determination.
(a)When any law-enforcement officer, fireman, rescue
squad worker or senior Civil Air Patrol member shall be killed
in the line of duty, the Industrial Commission shall award a
death benefit to be paid in the amounts set forth in subsection
(b) to the following:
(1) The spouse of such officer, fireman, rescue squad
worker or senior Civil Air Patrol member if there
be a surviving spouse; or
(2) If there be no spouse qualifying under the
provisions of this Article, then payments shall be
made to any surviving dependent child of such
officer, fireman, rescue squad worker or senior
Civil Air Patrol member and if there be more than
one surviving dependent child, then said payment
shall be made to and equally divided among all
surviving dependent children; or
(3) If there be no spouse and no dependent child or
children qualifying under the provisions of this
Article, then payments shall be made to the
surviving dependent parent of such officer,
fireman, rescue squad worker or senior Civil Air
Patrol member and if there be more than one
surviving dependent parent then said payments shall
be made to and equally divided between the
surviving dependent parents of said officer,
fireman, rescue squad worker or senior Civil Air
Patrol member.
(b) Payment shall be made to the person or persons qualifying
therefor under subsection (a) in the following amounts:
(1) At the time of the death of an officer, fireman,
rescue squad worker or senior Civil Air Patrol
member, ten thousand dollars ($10,000)
twenty thousand dollars ($20,000)
shall be paid to the person or persons entitled
thereto.
(2) Thereafter, five thousand dollars ($5,000)
ten thousand dollars ($10,000)
shall be paid annually to the person or persons
entitled thereto until the sum of the initial
payment and each annual payment reaches
twenty-five thousand dollars
($25,000). fifty thousand dollars
($50,000).
(3) In the event there is no person qualifying under
subsection (a) of this section, twenty-five
thousand dollars ($25,000) fifty
thousand dollars ($50,000) shall be paid to the
estate of the deceased officer, fireman, rescue
squad worker or senior Civil Air Patrol member at
the time of death.
(c) In the event that any person or persons eligible for
payments under subsection (a) of this section shall become
ineligible, and other eligible person or persons qualify for
said death benefit payments under subsection (a), then they
shall receive the remainder of any payments up to the limit of
twenty-five thousand dollars ($25,000) fifty
thousand dollars ($50,000) in the manner set forth in
subsection (b) of this section.
(d) In the event any person or persons eligible for payments
under subsection (a) of this section shall become ineligible and
no other person or persons qualify for payments under that
subsection and where the sum of the initial payment of
ten thousand dollars ($10,000) twenty
thousand dollars ($20,000) and each subsequent annual
payment of five thousand dollars ($5,000)
ten thousand dollars ($10,000) does not total
twenty-five thousand dollars ($25,000),
fifty thousand dollars ($50,000), then the difference
between the total of the payments made and twenty-five
thousand dollars ($25,000) fifty thousand dollars
($50,000) shall immediately be payable to the estate of the
deceased officer, fireman, rescue squad worker, or senior Civil
Air Patrol member."
SECTION 30.18A.(b) G.S. 143-166.2(c) reads as
rewritten:
"(c)The term 'killed in the line of duty' shall apply to any
law-enforcement officer, fireman, rescue squad worker who is
killed or dies as a result of bodily injuries sustained or of
extreme exercise or extreme activity experienced in the course
and scope of his official duties while in the discharge of his
official duty or duties. When applied to a senior member of the
Civil Air Patrol as defined in this Article, 'killed in the line
of duty' shall mean any such senior member of the North Carolina
Wing-Civil Air Patrol who is killed or dies as a result of
bodily injuries sustained or of extreme exercise or extreme
activity experienced in the course and scope of his official
duties while engaged in a State requested and approved mission
pursuant to Article 11 of Chapter 143B of the General Statutes.
For purposes of this Article, when a fireman dies as the
direct and proximate result of a myocardial infarction suffered
while on duty or within 24 hours after participating in a
training exercise or responding to an emergency situation, the
fireman is presumed to have been killed in the line of
duty."
INCREASE MONTHLY PENSION FOR MEMBERS OF THE FIREMEN'S AND
RESCUE SQUAD WORKERS' PENSION FUND
SECTION 30.19. G.S. 58-86-55 reads as rewritten:
"§ 58-86-55. Monthly pensions upon retirement.
Any member who has served 20 years as an "eligible
fireman" or "eligible rescue squad worker" in the State of North
Carolina, as provided in G.S. 58-86-25 and G.S. 58-86-30, and
who has attained the age of 55 years is entitled to be paid a
monthly pension from this fund. The monthly pension shall be in
the amount of one hundred fifty-six dollars
($156.00) one hundred fifty-eight dollars
($158.00) per month. Any retired fireman receiving a pension
shall, effective July 1, 2002, July 1,
2003, receive a pension of one hundred fifty-six
dollars ($156.00) one hundred fifty-eight dollars
($158.00) per month.
Members shall pay ten dollars ($10.00) per month as required
by G.S. 58-86-35 and G.S. 58-86-40 for a period of no longer
than 20 years. No "eligible rescue squad member" shall receive a
pension prior to July 1, 1983. No member shall be entitled to a
pension hereunder until the member's official duties as a
fireman or rescue squad worker for which the member is paid
compensation shall have been terminated and the member shall
have retired as such according to standards or rules fixed by
the board of trustees.
A member who is totally and permanently disabled while in the
discharge of the member's official duties as a result of bodily
injuries sustained or as a result of extreme exercise or extreme
activity experienced in the course and scope of those official
duties and who leaves the fire or rescue squad service because
of this disability shall be entitled to be paid from the fund a
monthly benefit in an amount of one hundred fifty-six
dollars ($156.00) one hundred fifty-eight dollars
($158.00) per month beginning the first month after the
member's fifty-fifth birthday. All applications for disability
are subject to the approval of the board who may appoint
physicians to examine and evaluate the disabled member prior to
approval of the application, and annually thereafter. Any
disabled member shall not be required to make the monthly
payment of ten dollars ($10.00) as required by G.S. 58-86-35 and
G.S. 58-86-40.
A member who is totally and permanently disabled for any
cause, other than line of duty, who leaves the fire or rescue
squad service because of this disability and who has at least 10
years of service with the pension fund, may be permitted to
continue making a monthly contribution of ten dollars ($10.00)
to the fund until the member has made contributions for a total
of 240 months. The member shall upon attaining the age of 55
years be entitled to receive a pension as provided by this
section. All applications for disability are subject to the
approval of the board who may appoint physicians to examine and
evaluate the disabled member prior to approval of the
application and annually thereafter.
A member who, because his residence is annexed by a city
under Part 2 or Part 3 of Article 4 of Chapter 160A of the
General Statutes, or whose department is closed because of an
annexation by a city under Part 2 or Part 3 of Article 4 of
Chapter 160A of the General Statutes, or whose volunteer
department is taken over by a city or county, and because of
such annexation or takeover is unable to perform as a fireman or
rescue squad worker of any status, and if the member has at
least 10 years of service with the pension fund, may be
permitted to continue making a monthly contribution of ten
dollars ($10.00) to the fund until the member has made
contributions for a total of 240 months. The member upon
attaining the age of 55 years and completion of such
contributions shall be entitled to receive a pension as provided
by this section. Any application to make monthly contributions
under this section shall be subject to a finding of eligibility
by the Board of Trustees upon application of the member.
The pensions provided shall be in addition to all other
pensions or benefits under any other statutes of the State of
North Carolina or the United States, notwithstanding any
exclusionary provisions of other pensions or retirement systems
provided by law."
EQUALIZE LONGEVITY SERVICE FOR DISTRICT ATTORNEYS, ASSISTANT
DISTRICT ATTORNEYS, PUBLIC DEFENDERS, AND ASSISTANT PUBLIC
DEFENDERS
SECTION 30.19A.(a) G.S. 7A-65(c) reads as
rewritten:
"(c)In lieu of merit and other increment raises paid to
regular State employees, a district attorney shall receive as
longevity pay an amount equal to four and eight-tenths percent
(4.8%) of the annual salary set forth in the Current Operations
Appropriations Act payable monthly after five years of service,
and nine and six-tenths percent (9.6%) after 10 years of
service, fourteen and four-tenths percent (14.4%) after 15 years
of service, and nineteen and two-tenths percent (19.2%) after 20
years of service. Service shall mean service in the elective
position of a district attorney and shall not include service as
a deputy or acting district attorney. Service shall also mean
service as a justice or judge of the General Court of Justice,
as a clerk of superior court, or as an
assistant district attorney.
attorney, public defender, appellate defender, or assistant
public or appellate defender."
SECTION 30.19A.(b) G.S. 7A-65(d) reads as
rewritten:
"(d)In lieu of merit and other increment raises paid to
regular State employees, an assistant district attorney shall
receive as longevity pay an amount equal to four and
eight-tenths percent (4.8%) of the annual salary set forth in
the Current Operations Appropriations Act payable monthly after
five years of service, nine and six-tenths percent (9.6%) after
10 years of service, fourteen and four-tenths percent (14.4%)
after 15 years of service, and nineteen and two-tenths percent
(19.2%) after 20 years of service. "Service" means service as an
assistant district attorney or as a district
attorney. attorney, district attorney, public
defender, appellate defender, assistant public or appellate
defender, justice or judge of the General Court of Justice, or
clerk of superior court."
SECTION 30.19A.(c) G.S. 7A-498.7(c) reads as
rewritten:
"(c)A public defender shall be an attorney licensed to
practice law in North Carolina and shall devote full time to the
duties of the office. In lieu of merit and other increment
raises paid to regular State employees, a public defender shall
receive as longevity pay an amount equal to four and
eight-tenths percent (4.8%) of the annual salary set forth in
the Current Operations Appropriations Act payable monthly after
five years of service, nine and six-tenths percent (9.6%) after
10 years of service, fourteen and four-tenths percent (14.4%)
after 15 years of service, and nineteen and two-tenths percent
(19.2%) after 20 years of service. "Service" means service as a
public defender, appellate defender, assistant public or
appellate defender, district attorney, assistant district
attorney, justice or judge of the General Court of Justice, or
clerk of superior court."
SECTION 30.19A.(d) G.S. 7A-498.7(g) reads as
rewritten:
"(g)In lieu of merit and other increment raises paid to
regular State employees, an assistant public defender shall
receive as longevity pay an amount equal to four and
eight-tenths percent (4.8%) of the annual salary set forth in
the Current Operations Appropriations Act payable monthly after
five years of service, nine and six-tenths percent (9.6%) after
10 years of service, fourteen and four-tenths percent (14.4%)
after 15 years of service, and nineteen and two-tenths percent
(19.2%) after 20 years of service. "Service" means service as a
public defender, appellate defender, assistant public or
appellate defender, district attorney, assistant district
attorney, justice or judge of the General Court of Justice, or
clerk of superior court."
REDIRECTION OF COURT FEES
SECTION 30.19B.(a) G.S. 7A-304(a) reads as
rewritten:
"(a)In every criminal case in the superior or district court,
wherein the defendant is convicted, or enters a plea of guilty
or nolo contendere, or when costs are assessed against the
prosecuting witness, the following costs shall be assessed and
collected, except that when the judgment imposes an active
prison sentence, costs shall be assessed and collected only when
the judgment specifically so provides, and that no costs may be
assessed when a case is dismissed.
(1) For each arrest or personal service of criminal
process, including citations and subpoenas, the sum
of five dollars ($5.00), to be remitted to the
county wherein the arrest was made or process was
served, except that in those cases in which the
arrest was made or process served by a
law-enforcement officer employed by a municipality,
the fee shall be paid to the municipality employing
the officer.
(2) For the use of the courtroom and related judicial
facilities, the sum of twelve dollars ($12.00) in
the district court, including cases before a
magistrate, and the sum of thirty dollars ($30.00)
in superior court, to be remitted to the county in
which the judgment is rendered. In all cases where
the judgment is rendered in facilities provided by
a municipality, the facilities fee shall be paid to
the municipality. Funds derived from the facilities
fees shall be used exclusively by the county or
municipality for providing, maintaining, and
constructing adequate courtroom and related
judicial facilities, including: adequate space and
furniture for judges, district attorneys, public
defenders and other personnel of the Office of
Indigent Defense Services, magistrates, juries, and
other court related personnel; office space,
furniture and vaults for the clerk; jail and
juvenile detention facilities; free parking for
jurors; and a law library (including books) if one
has heretofore been established or if the governing
body hereafter decides to establish one. In the
event the funds derived from the facilities fees
exceed what is needed for these purposes, the
county or municipality may, with the approval of
the Administrative Officer of the Courts as to the
amount, use any or all of the excess to retire
outstanding indebtedness incurred in the
construction of the facilities, or to reimburse the
county or municipality for funds expended in
constructing or renovating the facilities (without
incurring any indebtedness) within a period of two
years before or after the date a district court is
established in such county, or to supplement the
operations of the General Court of Justice in the
county.
(3) For the retirement and insurance benefits of both
State and local government law-enforcement
officers, the sum of seven dollars and
twenty-five cents ($7.25), six dollars
and twenty-five cents ($6.25), to be remitted
to the State Treasurer. Fifty cents (50¢) of this
sum shall be administered as is provided in Article
12C of Chapter 143 of the General Statutes. Five
dollars and seventy-five cents ($5.75) of this sum
shall be administered as is provided in Article 12E
of Chapter 143 of the General Statutes, with one
dollar and twenty-five cents ($1.25) being
administered in accordance with the provisions of
G.S. 143-166.50(e). One dollar ($1.00) of
this sum shall be administered as is provided in
Article 12F of Chapter 143 of the General
Statutes.
(3a) For the supplemental pension benefits of sheriffs,
the sum of seventy-five cents (75¢) to be remitted
to the Department of Justice and administered under
the provisions of Article 12G of Chapter 143 of the
General Statutes.
(4) For support of the General Court of Justice, the
sum of seventy-five dollars
($75.00) seventy-six dollars
($76.00) in the district court, including cases
before a magistrate, and the sum of
eighty-two dollars ($82.00)
eighty-three dollars ($83.00) in the
superior court, to be remitted to the State
Treasurer. For a person convicted of a felony in
superior court who has made a first appearance in
district court, both the district court and
superior court fees shall be assessed. The State
Treasurer shall remit the sum of one dollar and
five cents ($1.05) of each fee collected under this
subdivision to the North Carolina State Bar for the
provision of services described in G.S. 7A-474.4.
(5) For using pretrial release services, the district
or superior court judge shall, upon conviction,
impose a fee of fifteen dollars ($15.00) to be
remitted to the county providing the pretrial
release services. This cost shall be assessed and
collected only if the defendant had been accepted
and released to the supervision of the agency
providing the pretrial release services.
(6) For support of the General Court of Justice, for
the issuance by the clerk of a report to the
Division of Motor Vehicles pursuant to G.S.
20-24.2, the sum of fifty dollars ($50.00), to be
remitted to the State Treasurer. Upon a showing to
the court that the defendant failed to appear
because of an error or omission of a judicial
official, a prosecutor, or a law-enforcement
officer, the court shall waive this fee.
(7) For the services of the State Bureau of
Investigation laboratory facilities, the district
or superior court judge shall, upon conviction,
order payment of the sum of three hundred dollars
($300.00) to be remitted to the Department of
Justice for support of the State Bureau of
Investigation. This cost shall be assessed only in
cases in which, as part of the investigation
leading to the defendant's conviction, the
laboratories have performed DNA analysis of the
crime, tests of bodily fluids of the defendant for
the presence of alcohol or controlled substances,
or analysis of any controlled substance possessed
by the defendant or the defendant's agent. The
court may waive or reduce the amount of the payment
required by this subdivision upon a finding of just
cause to grant such a waiver or reduction."
SECTION 30.19B.(b) G.S. 143-166.60(a) reads as
rewritten:
"(a)Of the sum derived from the cost of court
provided for in G.S. 7A-304(a)(3), the amount designated for
this Article shall be set aside and held in a separate fund to
create a A Separate Insurance Benefits Plan,
hereinafter called the "Plan", is to be an employee
welfare benefit plan, established for the benefit of (i) all law
enforcement officers, as defined in G.S. 135-1(11b) and G.S.
128-21(11b) employed by the State and local governments and (ii)
all former law-enforcement officers previously employed by the
State and local governments, who had 20 or more years of service
as an officer or are in receipt of a disability retirement
allowance from any State-administered retirement system or are
in receipt of a benefit from the Disability Income Plan of North
Carolina, who shall be participants."
STATE EMPLOYEE HEALTH BENEFIT PLAN/BENEFIT CHANGES
SECTION 30.19C.(a) G.S. 135-40.8(d) reads as
rewritten:
"(d)Where a network of qualified preferred providers of
inpatient and outpatient hospital care is reasonably available
for use by those individuals covered by the Plan, use of
providers outside of the preferred network shall be subject to a
twenty percent (20%) coinsurance rate up to five thousand
dollars ($5,000) per fiscal year per covered individual up to an
aggregate of fifteen thousand dollars ($15,000) per employee and
child(ren) or employee and family coverage contract per fiscal
year in addition to the general coinsurance percentage and
maximum fiscal year amount specified by G.S. 135-40.4 and G.S.
135-40.6. The Plan then pays one hundred percent (100%) of
the remaining covered expenses."
SECTION 30.19C.(b) G.S. 135-40.8 is amended by
adding a new subsection to read:
"(e) Where qualified out-of-state preferred
providers of medical care are not reasonably available in
medical emergencies, the Plan pays the amounts covered by
subsection (a) of this section. Any amount of charges for
services under this section that exceeds the amount allowed by
the Plan for the services of qualified preferred providers under
this section shall be negotiated between the Plan and the
provider of medical services, and the Plan shall ensure that the
Plan member is not held financially responsible for the amount
of these excess charges. If a Plan member is not capable of
making a decision about choosing an in-State qualified preferred
provider and emergency services personnel transport the Plan
member to a provider outside of the Plan network, then the
coverage under this subsection shall apply. As used in this
section, a 'medical emergency' is the sudden and unexpected
onset of a condition manifesting itself by acute symptoms of
sufficient severity that, in the absence of immediate medical
care, could imminently result in injury or danger to self or
others."
STUDY COMMISSION ON STATE DISABILITY INCOME PLAN, THE DEATH
BENEFIT PLAN, AND SEPARATE INSURANCE BENEFITS PLAN FOR LAW
ENFORCEMENT OFFICERS/AMEND DEFINITION OF DISABILITY
APPLICABLE TO THE STATE DISABILITY INCOME PLAN
SECTION 30.20.(a) There is established a Study
Commission on the State Disability Income Plan, the State Death
Benefit Plan, and the Separate Insurance Benefits Plan for Law
Enforcement Officers.
SECTION 30.20.(b) The Commission shall be
comprised of seven members as follows:
(1) Two persons appointed by the President Pro Tempore
of the Senate. One of these appointees shall be a
State employee.
(2) Two persons appointed by the Speaker of the House
of Representatives. One of these appointees shall
be a State employee.
(3) The State Treasurer, or the Treasurer's designee.
(4) The Executive Administrator of the Teachers' and
State Employees' Comprehensive Major Medical Plan.
(5) The President of the North Carolina Association of
Educators, or the President's designee.
Any vacancy shall be filled by the officer who made the
original appointment.
SECTION 30.20.(c) The Commission shall study the
plan design, funding, and administration of the Disability
Income Plan of North Carolina established pursuant to Article 6
of Chapter 135 of the General Statutes, the Death Benefit Plan
established pursuant to G.S. 135-5(l), and the Separate
Insurance Benefits Plan for State and Local Governmental Law
Enforcement Officers established pursuant to G.S. 143-166.60 to
determine what changes, if any, should be made to those Plans.
The Commission shall consider what changes could be made to the
Plans that would enhance the efficiency of and reduce the cost
of the Plans to the State and its employees.
SECTION 30.20.(d) The President Pro Tempore of
the Senate and the Speaker of the House of Representatives shall
designate cochairs of the Commission from among their respective
appointees. The Commission shall meet upon the call of the
cochairs. Members of the Commission shall receive per diem,
subsistence, and travel allowance in accordance with G.S.
120-3.1, 138-5, or 138-6, as appropriate. The Commission, while
in the discharge of official duties, may exercise all powers
provided for under the provisions of G.S. 120-19 and G.S.
120-19.1 through G.S. 120-19.4. The Commission shall terminate
the earlier of the delivery of its final report or December 31,
2004.
SECTION 30.20.(e) The Legislative Services
Commission, through the Legislative Services Officer, shall
assign professional staff to assist the Commission in its work.
The House of Representatives' and the Senate's Directors of
Legislative Assistants shall assign clerical staff to the
Commission, and the expenses relating to the clerical employees
shall be borne by the Commission. Subject to the approval of the
Legislative Services Commission, the Commission may meet in the
Legislative Building or the Legislative Office Building.
SECTION 30.20.(f) The Commission shall employ an
actuary with expertise in the areas of disability income
insurance and group life insurance to assist the Commission in
its work pursuant to the procedure set forth in G.S. 120-32.02.
This actuary shall not be a State employee or a person currently
under contract with the State to provide services. If necessary,
the Commission may hire other employees as provided in G.S.
120-32.02.
SECTION 30.20.(g) The Commission may meet during
a regular or extra session of the General Assembly, subject to
approval of the President Pro Tempore of the Senate and the
Speaker of the House of Representatives.
SECTION 30.20.(h) The Commission shall submit a
report of the results of its study, including any legislative
recommendations, to the General Assembly not later than January
1, 2005.
SECTION 30.20.(i) Of the funds appropriated to
the General Assembly, the Legislative Services Commission shall
allocate funds to implement the provisions of subsections (a)
through (i) of this section.
SECTION 30.20.(j) G.S. 135-101(6) reads as
rewritten:
"(6) "Disability" or "Disabled" shall mean the
mental or physical incapacity for the
further performance of duty of a participant or
beneficiary; physical or cognitive
limitations that prevent working as determined by
the Department of State Treasurer and the Board of
Trustees; provided that such incapacity was not
the result of terrorist activity, active
participation in a riot, committing or attempting
to commit a felony, or intentionally self-inflicted
injury.
SECTION 30.20.(k) G.S. 135-105(a) reads as
rewritten:
"(a)Any participant who becomes disabled and is no
longer able to perform his usual occupation is
unable to perform the duties of the participant's job or any
other available jobs with the State may, after at least 365
calendar days succeeding his date of initial employment as a
teacher or employee and at least one year of contributing
membership service, receive a benefit commencing on the first
day succeeding the waiting period; provided that the
participant's employer and attending physician shall certify
that such participant is mentally or physically
incapacitated for the further performance of duty,
cannot perform the duties of the participant's job or any
other jobs available with the State, that such incapacity
was incurred at the time of active employment and has been
continuous thereafter; provided further that the requirement for
one year of contributing membership service must have been
earned within 36 calendar months immediately preceding the date
of disability and further, salary continuation used during the
period as provided in G.S. 135-104 shall count toward the
aforementioned one year requirement.
Notwithstanding the requirement that the incapacity was
incurred at the time of active employment, any participant who
becomes disabled while on an employer approved leave of absence
and who is eligible for and in receipt of temporary total
benefits under The North Carolina Workers' Compensation Act,
Article 1 of Chapter 97 of the General Statutes, will be
eligible for all benefits provided under this Article."
SECTION 30.20.(l) G.S. 135-106(a) reads as
rewritten:
"(a)Upon the application of a beneficiary or participant or
of his legal representative or any person deemed by the Board of
Trustees to represent the participant or beneficiary, any
beneficiary or participant who has had five or more years of
membership service may receive long-term disability benefits
from the Plan upon approval by the Board of Trustees, commencing
on the first day succeeding the conclusion of the short-term
disability period provided for in G.S. 135-105, provided the
beneficiary or participant makes application for such benefit
within 180 days after the short-term disability period ceases,
after salary continuation payments cease, or after monthly
payments for Workers' Compensation cease, whichever is later;
Provided, that the beneficiary or participant withdraws from
active service by terminating employment as a teacher or State
employee; Provided, that the Medical Board shall certify that
such beneficiary or participant is mentally or
physically incapacitated for the further performance of
duty, unable to perform any occupation for which the
beneficiary or participant is reasonably qualified for by
training or experience, that such incapacity was incurred at
the time of active employment and has been continuous
thereafter, that such incapacity is likely to be permanent;
Provided further that the Medical Board shall not certify any
beneficiary or participant as disabled who is in receipt of any
payments on account of the same incapacity which existed when
the beneficiary first established membership in the Retirement
System. The Board of Trustees may extend this 180-day filing
requirement upon receipt of clear and convincing evidence that
application was delayed through no fault of the disabled
beneficiary or participant and was delayed due to the employers'
miscalculation of the end of the 180-day filing period. However,
in no instance shall the filing period be extended beyond an
additional 180 days.
The Board of Trustees may require each beneficiary who
becomes eligible to receive a long-term disability benefit to
have an annual medical review or examination for the first five
years and thereafter once every three years after the
commencement of benefits under this section. However, the Board
of Trustees may require more frequent examinations and upon the
advice of the Medical Board shall determine which cases require
such examination. Should any beneficiary refuse to submit to any
examination required by this subsection or by the Medical Board,
his long-term disability benefit shall be suspended until he
submits to an examination, and should his refusal last for one
year, his benefit may be terminated by the Board of Trustees. If
the Medical Board finds that a beneficiary is no longer
mentally or physically incapacitated for the further
performance of duty, the Medical Board shall so certify this
finding to the Board of Trustees, and unable to
perform any occupation for which the beneficiary or participant
is reasonably qualified for by training or experience, the
Department of State Treasurer and the Board of Trustees may
terminate the beneficiary's long-term disability benefits
effective on the last day of the month in which the Medical
Board certifies that the beneficiary is no longer disabled.
As to the requirement of five years of membership service,
any participant or beneficiary who does not have five years of
membership service within the 96 calendar months prior to
conclusion of the short-term disability period or cessation of
salary continuation payments, whichever is later, shall not be
eligible for long-term disability benefits.
Notwithstanding the requirement that the incapacity was
incurred at the time of active employment, any participant who
becomes disabled while on an employer approved leave of absence
and who is eligible for and in receipt of temporary total
benefits under The North Carolina Workers' Compensation Act,
Article 1 of Chapter 97 of the General Statutes, will be
eligible for all benefits provided under this Article."
SECTION 30.20.(m) Subsections (j) though (l) of
this section apply only to persons who are not vested in the
disability plan in question on July 1, 2003.
STUDY ESTABLISHMENT OF STATEWIDE BENEFIT COMMITTEE TO PROVIDE
A MENU OF PORTABLE SUPPLEMENTAL BENEFITS FOR ALL STATE
EMPLOYEES
SECTION 30.21.(a) There is established a Study
Commission on Establishment of a Statewide Benefit Committee to
Provide a Menu of Portable Supplemental Benefits for all State
Employees.
SECTION 30.21.(b) The Commission shall be
comprised of nine members as follows:
(1) Four persons appointed by the President Pro Tempore
of the Senate. At least one of these appointees
shall be a State employee.
(2) Four persons appointed by the Speaker of the House
of Representatives. At least one of these
appointees shall be a State employee.
(3) The Director of the Office of State Personnel.
Any vacancy shall be filled by the officer who made the
original appointment.
SECTION 30.21.(c) The Commission shall study
whether there should be established a Statewide Benefit
Committee to provide a menu of portable supplemental benefits
for all State employees, rather than the current system of a
committee in each payroll unit.
SECTION 30.21.(d) The President Pro Tempore of
the Senate and the Speaker of the House of Representatives shall
designate cochairs of the Commission from among their respective
appointees. The Commission shall meet upon the call of the
cochairs. Members of the Commission shall receive per diem,
subsistence, and travel allowances in accordance with G.S.
120-3.1, 138-5, or 138-6, as appropriate. The Commission, while
in the discharge of official duties, may exercise all powers
provided for under the provisions of G.S. 120-19 and G.S.
120-19.1 through G.S. 120-19.4. The Commission shall terminate
the earlier of the delivery of its final report or December 31,
2004.
SECTION 30.21.(e) The Legislative Services
Commission, through the Legislative Services Officer, shall
assign professional staff to assist the Commission in its work.
The House of Representatives' and the Senate's Directors of
Legislative Assistants shall assign clerical staff to the
Commission, and the expenses relating to the clerical employees
shall be borne by the Commission. Subject to the approval of the
Legislative Services Commission, the Commission may meet in the
Legislative Building or the Legislative Office Building.
SECTION 30.21.(f) The Commission may meet during
a regular or extra session of the General Assembly, subject to
approval of the President Pro Tempore of the Senate and the
Speaker of the House of Representatives.
SECTION 30.21.(g) The Commission shall submit a
report of the results of its study, including any legislative
recommendations, to the General Assembly not later than January
1, 2005.
SECTION 30.21.(h) Of the funds appropriated to
the General Assembly, the Legislative Services Commission shall
allocate funds to implement the provisions of subsections (a)
through (g) of this section.
PART XXXI. CAPITAL APPROPRIATIONS
CAPITAL APPROPRIATIONS/GENERAL FUND
SECTION 31.1. There is appropriated from the
General Fund for the 2003-2004 fiscal year the following amount
for capital improvements:
2003-2004
Department of Environment and Natural Resources
Water Resources Development Projects $27,601,000
TOTAL CAPITAL APPROPRIATION $27,601,000
WATER RESOURCES DEVELOPMENT PROJECT FUNDS
SECTION 31.2.(a) The Department of Environment and
Natural Resources shall allocate the funds appropriated in this
act for water resources development projects to the following
projects whose costs are as indicated:
Name of Project 2003-2004
(1) Wilmington Harbor Deepening $6,800,000
(2) Morehead City Harbor Maintenance 100,000
(3) Morehead City Harbor Section 933 Nourishment4
,661,000
(4) Wilmington Harbor Maintenance 2,700,000
(5) Manteo (Shallowbag) Bay Channel Maintenance3,
500,000
(6) John H. Kerr Reservoir Operations Evaluation200,000
(7) Beaufort Harbor Maintenance Dredging 80,000
(8) Carolina Beach Renourishment (New Hanover County)
1,125,000
(9) Kure Beach Renourishment (New Hanover County)
1,177,000
(10) Ocean Isle Beach Renourishment (Brunswick County)
813,000
(11) Bogue Banks Shore Protection Study (Carteret
County) 200,000
(12) Surf City/North Topsail Beach Protection Study
150,000
(13) Princeville Flood Control Study 400,000
(14) West Onslow Beach (Topsail) 75,000
(15) Deep Creek (Yadkin County) Watershed Management
1,500,000
(16) State Local Projects 2,500,000
(17) Currituck Sound Water Management Study150,000
(18) Aquatic Weed Control, Lake Gaston and Statewide
300,000
(19) Swan Quarter (Hyde County) Flood Control Dikes
100,000
(20) Little Sugar Creek Restoration (Mecklenburg County)
20,000
(21) Neuse River Basin Feasibility Study 100,000
(22) Environmental Restoration Projects 700,000
(23) Projected Feasibility Studies 100,000
(24) Planning Assistance to Communities 150,000
TOTAL $27,601,000
SECTION 31.2.(b) Where the actual costs are
different from the estimated costs under subsection (a) of this
section, the Department may adjust the allocations among
projects as needed. If any projects funded under subsection (a)
of this section are delayed and the budgeted State funds cannot
be used during the 2003-2004 fiscal year, or if the projects
funded under subsection (a) of this section are accomplished at
a lower cost, the Department may use the resulting fund
availability to fund any of the following:
(1) Corps of Engineers project feasibility studies.
(2) Corps of Engineers projects whose schedules have
advanced and require State-matching funds in fiscal
year 2003-2004.
(3) State-local water resources development projects.
Funds not expended or encumbered for these purposes shall revert
to the General Fund at the end of the 2004-2005 fiscal year.
SECTION 31.2.(c) The Department shall make
quarterly reports on the use of these funds to the Joint
Legislative Commission on Governmental Operations, the Fiscal
Research Division, and the Office of State Budget and
Management. Each report shall include all of the following:
(1) All projects listed in this section.
(2) The estimated cost of each project.
(3) The date that work on each project began or is
expected to begin.
(4) The date that work on each project was completed or
is expected to be completed.
(5) The actual cost of each project.
The quarterly reports shall also show those projects
advanced in schedule, those projects delayed in schedule, and an
estimate of the amount of funds expected to revert to the
General Fund.
SECTION 31.2.(d) Notwithstanding G.S. 143-23, if
additional federal funds that require a State match are received
for water resources projects or for beach renourishment projects
for the 2003-2004 fiscal year, the Director of the Budget may,
after consultation with the Joint Legislative Commission on
Governmental Operations, transfer funds from General Fund
appropriations to match the federal funds.
PROCEDURES FOR DISBURSEMENT OF CAPITAL FUNDS
SECTION 31.3. The appropriations made by the 2003
General Assembly for capital improvements shall be disbursed for
the purposes provided by this act. Expenditure of funds shall
not be made by any State department, institution, or agency
until an allotment has been approved by the Governor as Director
of the Budget. The allotment shall be approved only after full
compliance with the Executive Budget Act, Article 1 of Chapter
143 of the General Statutes. Prior to the award of construction
contracts for projects to be financed in whole or in part with
self-liquidating appropriations, the Director of the Budget
shall approve the elements of the method of financing of those
projects including the source of funds, interest rate, and
liquidation period. Provided, however, that if the Director of
the Budget approves the method of financing a project, the
Director shall report that action to the Joint Legislative
Commission on Governmental Operations at its next meeting.
Where direct capital improvement appropriations include
the purpose of furnishing fixed and movable equipment for any
project, those funds for equipment shall not be subject to
transfer into construction accounts except as authorized by the
Director of the Budget. The expenditure of funds for fixed and
movable equipment and furnishings shall be reviewed and approved
by the Director of the Budget prior to commitment of funds.
Capital improvement projects authorized by the 2003
General Assembly shall be completed, including fixed and movable
equipment and furnishings, within the limits of the amounts of
the direct or self-liquidating appropriations provided, except
as otherwise provided in this act. Capital improvement projects
authorized by the 2003 General Assembly for the design phase
only shall be designed within the scope of the project as
defined by the approved cost estimate filed with the Director of
the Budget, including costs associated with site preparation,
demolition, and movable and fixed equipment.
ENCUMBERED APPROPRIATIONS AND PROJECT RESERVE FUNDS
SECTION 31.4. When each capital improvement project
appropriated by the 2003 General Assembly, other than those
projects under the Board of Governors of The University of North
Carolina, is placed under a construction contract, direct
appropriations shall be encumbered to include all costs for
construction, design, investigation, administration, movable
equipment, and a reasonable contingency. Unencumbered direct
appropriations remaining in the project budget shall be placed
in a project reserve fund credited to the Office of State Budget
and Management. Funds in the project reserve may be used for
emergency repair and renovation projects at State facilities
with the approval of the Director of the Budget. The project
reserve fund may be used, at the discretion of the Director of
the Budget, to allow for award of contracts where bids exceed
appropriated funds, if those projects supplemented were designed
within the scope intended by the applicable appropriation or any
authorized change in it, and if, in the opinion of the Director
of the Budget, all means to award contracts within the
appropriation were reasonably attempted. At the discretion of
the Director of the Budget, any balances in the project reserve
fund shall revert to the original source.
EXPENDITURES OF FUNDS FROM THE RESERVE FOR REPAIRS AND
RENOVATIONS
SECTION 31.5. Of the funds in the Reserve for
Repairs and Renovations for the 2003-2004 fiscal year, forty-six
percent (46%) shall be allocated to the Board of Governors of
The University of North Carolina for repairs and renovations
pursuant to G.S. 143-15.3A, in accordance with guidelines
developed in The University of North Carolina Funding Allocation
Model for Reserve for Repairs and Renovations, as approved by
the Board of Governors of The University of North Carolina, and
fifty-four percent (54%) shall be allocated to the Office of
State Budget and Management for repairs and renovations pursuant
to G.S. 143-15.3A.
Notwithstanding G.S. 143-15.3A, the Board of Governors
may allocate funds for the repair and renovation of facilities
not supported from the General Fund if the Board determines that
sufficient funds are not available from other sources and that
conditions warrant General Fund assistance. Any such finding
shall be included in the Board's submission to the Joint
Legislative Commission on Governmental Operations on the
proposed allocation of funds.
Notwithstanding G.S. 143-15.3A, the Office of State
Budget and Management shall allocate funds from the Reserve to
complete the construction of State-owned facilities that are
partially completed; the remainder of funds shall be allocated
for other repairs and renovations projects.
The Board of Governors and the Office of State Budget
and Management shall submit to the Joint Legislative Commission
on Governmental Operations and to the Fiscal Research Division
of the Legislative Services Office, for their review, the
proposed allocations of these funds. Subsequent changes in the
proposed allocations shall be reported prior to expenditure to
the Joint Legislative Commission on Governmental Operations and
to the Fiscal Research Division of the Legislative Services
Office.
PROJECT COST INCREASE
SECTION 31.7. Upon the request of the
administration of a State agency, department, or institution,
the Director of the Budget may, when in the Director's opinion
it is in the best interest of the State to do so, increase the
cost of a capital improvement project. Provided, however, that
if the Director of the Budget increases the cost of a project,
the Director shall report that action to the Joint Legislative
Commission on Governmental Operations at its next meeting. The
increase may be funded from gifts, federal or private grants,
special fund receipts, excess patient receipts above those
budgeted at the University of North Carolina Hospitals at Chapel
Hill, or direct capital improvement appropriations to that
department or institution.
NEW PROJECT AUTHORIZATION
SECTION 31.8. Upon the request of the
administration of any State agency, department, or institution,
the Director of the Budget may authorize the construction of a
capital improvement project not specifically authorized by the
General Assembly if such project is to be funded by gifts,
federal or private grants, special fund receipts, excess patient
receipts above those budgeted at the University of North
Carolina Hospitals at Chapel Hill, or self-liquidating
indebtedness. Prior to authorizing the construction of a
capital improvement project pursuant to this section, the
Director shall consult with the Joint Legislative Commission on
Governmental Operations.
ADVANCE PLANNING OF CAPITAL IMPROVEMENT PROJECTS
SECTION 31.9. Funds that become available by gifts,
excess patient receipts above those budgeted at the University
of North Carolina Hospitals at Chapel Hill, federal or private
grants, receipts becoming a part of special funds by act of the
General Assembly, or any other funds available to a State
department or institution may be utilized for advance planning
through the working drawing phase of capital improvement
projects, upon approval of the Director of the Budget. The
Director of the Budget may make allocations from the Advance
Planning Fund for advance planning through the working drawing
phase of capital improvement projects, except that this
revolving fund shall not be utilized by the Board of Governors
of The University of North Carolina or the State Board of
Community Colleges.
APPROPRIATIONS LIMITS/REVERSION OR LAPSE
SECTION 31.10. Except as permitted in previous
sections of this act, the appropriations for capital
improvements made by the 2003 General Assembly may be expended
only for specific projects set out by the 2003 General Assembly
and for no other purpose. Construction of all capital
improvement projects enumerated by the 2003 General Assembly
shall be commenced, or self-liquidating indebtedness with
respect to them shall be incurred, within 12 months following
the first day of the fiscal year in which the funds are
available. If construction contracts on those projects have not
been awarded or self-liquidating indebtedness has not been
incurred within that period, the direct appropriation for those
projects shall revert to the original source, and the
self-liquidating appropriation shall lapse; except that direct
appropriations may be placed in a reserve fund as authorized in
this act. This deadline with respect to both direct and
self-liquidating appropriations may be extended with the
approval of the Director of the Budget up to an additional 12
months if circumstances and conditions warrant such extension.
INTENT TO FUND PARTIALLY COMPLETED CAPITAL PROJECTS
SECTION 31.11. It is the intent of the General
Assembly that future appropriations for capital improvements
shall include funding for new projects only after full funding
for partially completed projects has been restored.
PART XXXII. REGULATORY FEE FOR UTILITIES COMMISSION
REGULATORY FEE FOR UTILITIES COMMISSION
SECTION 32.1.(a) The percentage rate to be used in
calculating the public utility regulatory fee under G.S.
62-302(b)(2) is twelve hundredths of a percent (0.12%) for each
public utility's North Carolina jurisdictional revenues earned
during each quarter that begins on or after July 1, 2003.
SECTION 32.1.(b) The electric membership
corporation regulatory fee imposed under G.S. 62-302(b1) for the
2003-2004 fiscal year is two hundred thousand dollars
($200,000).
SECTION 32.1.(c) This section becomes effective
July 1, 2003.
PART XXXIII. INSURANCE REGULATORY CHARGE
INSURANCE REGULATORY CHARGE
SECTION 33.1.(a) The percentage rate to be used in
calculating the insurance regulatory charge under G.S. 58-6-25
is five percent (5%) for the 2003 calendar year.
SECTION 33.1.(b) This section is effective when
it becomes law.
PART XXXIV. DEPARTMENT OF HEALTH AND HUMAN SERVICES FEES
DIVISION OF FACILITIES SERVICES FEES
SECTION 34.1.(a) G.S. 131D-2(b)(1) reads as
rewritten:
"(b)Licensure; inspections. -
(1) The Department of Health and Human Services shall
inspect and license, under rules adopted by the
Medical Care Commission, all adult care homes for
persons who are aged or mentally or physically
disabled except those exempt in subsection (c) of
this section. Licenses issued under the authority
of this section shall be valid for one year from
the date of issuance unless revoked earlier by the
Secretary for failure to comply with any part of
this section or any rules adopted hereunder.
Licenses shall be renewed annually upon filing and
the Department's approval of the renewal
application. The Department shall charge each
adult care home with six or fewer beds a
nonrefundable annual license fee in the amount of
one hundred twenty-five dollars ($125.00). The
Department shall charge each adult care home with
more than six beds a nonrefundable annual license
fee in the amount of one hundred seventy-five
dollars ($175.00) plus a nonrefundable annual per-
bed fee of six dollars and twenty-five cents
($6.25). A license shall not be renewed if
outstanding fines fees,
fines, and penalties imposed by the State
against the home have not been paid. Fines and
penalties for which an appeal is pending are exempt
from consideration. The renewal application shall
contain all necessary and reasonable information
that the Department may by rule require. Except as
otherwise provided in this subdivision, the
Department may amend a license by reducing it from
a full license to a provisional license for a
period of not more than 90 days whenever the
Department finds that:
a. The licensee has substantially failed to
comply with the provisions of Articles 1 and 3
of Chapter 131D of the General Statutes and
the rules adopted pursuant to these Articles;
b. There is a reasonable probability that the
licensee can remedy the licensure deficiencies
within a reasonable length of time; and
c. There is a reasonable probability that the
licensee will be able thereafter to remain in
compliance with the licensure rules for the
foreseeable future.
The Department may extend a provisional license for
not more than one additional 90-day period upon
finding that the licensee has made substantial
progress toward remedying the licensure
deficiencies that caused the license to be reduced
to provisional status.
The Department may revoke a license whenever:
a. The Department finds that:
1. The licensee has substantially failed to
comply with the provisions of Articles 1
and 3 of Chapter 131D of the General
Statutes and the rules adopted pursuant
to these Articles; and
2. It is not reasonably probable that the
licensee can remedy the licensure
deficiencies within a reasonable length
of time; or
b. The Department finds that:
1. The licensee has substantially failed to
comply with the provisions of Articles 1
and 3 of Chapter 131D of the General
Statutes and the rules adopted pursuant
to these Articles; and
2. Although the licensee may be able to
remedy the deficiencies within a
reasonable time, it is not reasonably
probable that the licensee will be able
to remain in compliance with licensure
rules for the foreseeable future; or
c. The Department finds that the licensee has
failed to comply with the provisions of
Articles 1 and 3 of Chapter 131D of the
General Statutes and the rules adopted
pursuant to these Articles, and the failure to
comply endangered the health, safety, or
welfare of the patients in the facility.
The Department may also issue a provisional license
to a facility, pursuant to rules adopted by the
Medical Care Commission, for substantial failure to
comply with the provisions of this section or rules
adopted pursuant to this section. Any facility
wishing to contest the issuance of a provisional
license shall be entitled to an administrative
hearing as provided in the Administrative Procedure
Act, Chapter 150B of the General Statutes. A
petition for a contested case shall be filed within
30 days after the Department mails written notice
of the issuance of the provisional license."
SECTION 34.1.(b) This section becomes effective
October 1, 2003.
SECTION 34.2.(a) G.S. 131E-77(d) reads as
rewritten:
"(d)Upon receipt of an application for a license, the
Department shall issue a license if it finds that the applicant
complies with the provisions of this Article and the rules of
the Commission. The Department shall renew each license in
accordance with the rules of the Commission. The Department
shall charge the applicant a nonrefundable annual base license
fee plus a nonrefundable annual per-bed fee as follows:
Facility Type Number of Beds
Base Fee Per-Bed Fee
General Acute Hospitals:1-49 beds
$125.00 $6.25
50-99 beds$175.00
$6.25
100-199 beds $225.00
$6.25
200-399 beds $275.00
$6.25
400-699 beds $375.00
$6.25
700+ beds$475.00
$6.25
Other Hospitals: $250.00
$6.25"
SECTION 34.2.(b) This section becomes effective
October 1, 2003.
SECTION 34.3.(a) G.S. 131E-102(b) reads as
rewritten:
"(b)Applications shall be available from the Department, and
each application filed with the Department shall contain all
necessary and reasonable information that the Department may by
rule require. A license shall be granted to the applicant upon a
determination by the Department that the applicant has complied
with the provisions of this Part and the rules promulgated under
this Part. The Department shall charge the applicant a
nonrefundable annual license fee in the amount of two hundred
twenty-five dollars ($225.00) plus a nonrefundable annual
per-bed fee of six dollars and twenty-five cents ($6.25)."
SECTION 34.3.(b) This section becomes effective
October 1, 2003.
SECTION 34.4.(a) G.S. 131E-138(c) reads as
rewritten:
"(c)An application for a license shall be available from the
Department, and each application filed with the Department shall
contain all information requested by the Department. A license
shall be granted to the applicant upon a determination by the
Department that the applicant has complied with the provisions
of this Part and the rules promulgated by the Commission under
this Part. The Department shall charge the applicant a
nonrefundable annual license fee in the amount of one hundred
seventy-five dollars ($175.00)."
SECTION 34.4.(b) This section becomes effective
October 1, 2003.
SECTION 34.5.(a) G.S. 131E-147(b) reads as
rewritten:
"(b)Applications shall be available from the Department, and
each application filed with the Department shall contain all
necessary and reasonable information that the Department may by
rule require. A license shall be granted to the applicant upon a
determination by the Department that the applicant has complied
with the provisions of this Part and the rules promulgated by
the Commission under this Part. The Department shall charge
the applicant a nonrefundable annual base license fee in the
amount of three hundred fifty dollars ($350.00) plus a
nonrefundable annual per-operating room fee in the amount of
twenty-five dollars ($25.00)."
SECTION 34.5.(b) This section becomes effective
October 1, 2003.
SECTION 34.6.(a) G.S. 131E-167(a) reads as
rewritten:
"(a)Applications for certification shall be available from
the Department, and each application filed with the Department
shall contain all necessary and reasonable information that the
Department may by rule require. A certificate shall be granted
to the applicant for a period not to exceed two
yearsone year upon a determination by the
Department that the applicant has substantially complied with
the provisions of this Article and the rules promulgated by the
Department under this Article. The Department shall charge
the applicant a nonrefundable annual certification fee in the
amount of one hundred twenty-five dollars ($125.00)."
SECTION 34.6.(b) This section becomes effective
October 1, 2003.
SECTION 34.7.(a) Article 16 of Chapter 131E of the
General Statutes is amended by adding the following new section
to read:
"§ 131E-269. Authorization to charge fee for
certification of facilities suitable to perform
abortions.
The Department of Health and Human Services shall
charge each hospital or clinic certified by the Department as a
facility suitable for the performance of abortions, as
authorized under G.S. 14-45.1, a nonrefundable annual
certification fee in the amount of three hundred fifty dollars
($350.00)."
SECTION 34.7.(b) This section becomes effective
October 1, 2003.
SECTION 34.8.(a) G.S. 122C-23 is amended by adding
the following new subsection to read:
"(h) The Department shall charge facilities
licensed under this Chapter that have licensed beds a
nonrefundable annual base license fee plus a nonrefundable
annual per-bed fee as follows:
Type of Facility Number of Beds
Base Fee Per-Bed Fee
Facilities (non-ICF/MR):6 or fewer beds
$125.00 $0
More than 6 beds$175.00
$6.25
ICF/MR Only: 6 or fewer beds$325.00
$0
More than 6 beds$325.00
$6.25"
SECTION 34.8.(b) This section becomes effective
October 1, 2003.
SECTION 34.9.(a) Part 3 of Article 6 of Chapter
131E of the General Statutes is amended by adding the following
new section to read:
"§ 131E-138.1. Licensure fees for nursing beds and adult
care home beds in continuing care retirement
communities.
The Department shall charge continuing care retirement
communities licensed under Article 64 of Chapter 58 of the
General Statutes that have nursing home beds or adult care home
beds licensed by the Department a nonrefundable annual base
license fee in the amount of two hundred twenty-five dollars
($225.00) plus a nonrefundable annual per-bed fee in the amount
of six dollars and twenty-five cents ($6.25)."
SECTION 34.9.(b) This section becomes effective
October 1, 2003.
SECTION 34.10. Reserved.
SECTION 34.11.(a) Article 16 of Chapter 131E of
the General Statutes is amended by adding the following new
section to read:
"§ 131E-267. Fees for departmental review of health care
facility construction projects.
The Department of Health and Human Services shall
charge a fee for the review of each health care facility
construction project to ensure that project plans and
construction are in compliance with State law. The fee shall be
charged on a one-time, per-project basis, as follows, and shall
not exceed twelve thousand five hundred dollars ($12,500) for
any single project:
Institutional Project Project Fee
Hospitals $150.00 plus $0.10/square foot of
project space
Nursing Homes $125.00 plus $0.08/square foot of
project space
Ambulatory Surgical Facility $100.00 plus
$0.08/square foot of project space
Psychiatric Hospital $100.00 plus $0.08/square
foot of project space
Adult Care Home more
than 7 beds $87.00 plus $0.05/square foot of
project space
Residential Project Project Fee
Family Care Homes $87.00 flat fee
ICF/MR Group Homes $137.00 flat fee
Group Homes: 1-3 beds $50.00 flat fee
Group Homes: 4-6 beds $87.00 flat fee
Group Homes: 7-9 beds $112.00 flat fee
Other residential:
More than 9 beds $112.00 plus $0.038/square foot
of project space."
SECTION 34.11.(b) This section becomes effective
October 1, 2003.
DIVISION OF CHILD DEVELOPMENT FEES
SECTION 34.12.(a) G.S. 110-90 reads as rewritten:
"§ 110-90. Powers and duties of Secretary of Health and
Human Services.
The Secretary shall have the following powers and duties
under the policies and rules of the Commission:
(1) To administer the licensing program for child care
facilities.
(1a) To establish a fee for the licensing
of child care centers. The fee does not apply to a
religious-sponsored child care center operated
pursuant to a letter of compliance. The amount of
the fee may not exceed the amount listed in this
subdivision.
Capacity of Center Maximum
Fee
12 or fewer children$ 35.00
13-50 children $125.00
51-100 children $250.00
101 or more children$400.00
(2) To obtain and coordinate the necessary services
from other State departments and units of local
government which are necessary to implement the
provisions of this Article.
(3) To employ the administrative personnel and staff as
may be necessary to implement this Article where
required services, inspections or reports are not
available from existing State agencies and units of
local government.
(4) To issue a rated license to any child care facility
which meets the standards established by this
Article. The rating shall be based on program
standards, education levels of staff, and
compliance history of the child care facility.
(5) To revoke the license of any child care facility
that ceases to meet the standards established by
this Article and rules on these standards adopted
by the Commission, or that demonstrates a pattern
of noncompliance with this Article or the rules, or
to deny a license to any applicant that fails to
meet the standards or the rules. These revocations
and denials shall be done in accordance with the
procedures set out in G.S. 150B and this Article
and rules adopted by the Commission.
(6) To prosecute or defend on behalf of the State,
through the office of the Attorney General, any
legal actions arising out of the administration or
enforcement of this Article.
(7) To promote and coordinate educational programs and
materials for operators of child care facilities
which are designed to improve the quality of child
care available in the State, using the resources of
other State and local agencies and educational
institutions where appropriate.
(8) Repealed by Session Laws 1997-506, s. 5.
(9) To levy a civil penalty pursuant to G.S. 110-103.1,
or an administrative penalty pursuant to G.S.
110-102.2, or to order summary suspension of a
license. These actions shall be done in accordance
with the procedures set out in G.S. 150B and this
Article and rules adopted by the Commission.
(10) To issue final agency decisions in all G.S. 150B
contested cases proceedings filed as a result of
actions taken under this Article including, but not
limited to the denial, revocation, or suspension of
a license or the levying of a civil or
administrative penalty.
(11) To issue a license to any child care arrangement
that does not meet the definition of child care
facility in G.S. 110-86 whenever the operator of
the arrangement chooses to comply with the
requirements of this Article and the rules adopted
by the Commission and voluntarily applies for a
child care facility license. The Commission shall
adopt rules for the issuance or removal of the
licenses."
SECTION 34.12.(b) This section becomes effective
October 1, 2003.
DIVISION OF PUBLIC HEALTH FEE
SECTION 34.13.(a) G.S. 130A-5 is amended by adding
the following new subdivision to read:
"(15) To establish a fee not to exceed the
cost of analyzing clinical Pap smear specimens sent
to the State Laboratory by local health departments
and State-owned facilities and for reporting the
results of the analysis. This fee shall be in
addition to the charge for the Pap smear test
kit."
SECTION 34.13.(b) This section becomes effective
July 1, 2003.
PART XXXV. FEES FOR DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES AND DEPARTMENT OF AGRICULTURE AND CONSUMER
SERVICES
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES FEES
SECTION 35.1.(a) G.S. 113-34 reads as rewritten:
"§ 113-34. Power to acquire lands as State forests, parks,
etc.; and other recreational
areas; donations or leases by United States; leases
for recreational purposes; rules governing
public use.purposes.
(a)The Governor of the State is authorized to
may, upon recommendation of the
Department Department, accept gifts of
land to the State, the sameState to be
held, protected, and administered by the Department as State
forests, and to be used so as to demonstrate the practical
utility of timber culture and water conservation, and as refuges
for game. The gifts of land must be absolute except in cases
where the mineral interest on the land has previously been sold.
The Department shall have the power
tomay purchase lands in the name of the State,
suitable chiefly for the production of timber, as State forests,
for experimental, demonstration, educational, park, and
protection purposes, using for such
these purposes any special appropriations or
funds available. The Department shall also have the
power tomay acquire by condemnation under the
provisions of Chapter 40A of the General Statutes, areas of land
in different sections of the State as that
may in the opinion of the Department be necessary for the
purpose of establishing or developing, or
both,developing State forests, State
parks parks, and other areas and
developments essential to the effective operation of the State
forestry and State park activities with which the
Department has been or may be entrusted.under its
charge. Condemnation proceedings shall be instituted and
prosecuted in the name of the State of North
Carolina,State, and any property so acquired
shall be administered, developed developed,
and used for experiment and demonstration in forest
management, for public recreation
recreation, and for other purposes authorized or
required by law: Provided, that beforelaw.
Before any action or proceeding under this section can be
exercised, the approval of the Governor and Council of State
shall be obtained and filed with the clerk of the superior court
in the county or counties where the property may be
situated, and until approval is obtained, the rights and powers
conferred by this section shall not be exercised. is
located. The Attorney General of the State is
directed to see shall ensure that all deeds to
the State for land mentioned inacquired
under this section are properly executed before the gift is
accepted or payment of the purchase money is made.
(b) The Department may accept as gifts to the State
of North Carolina any forest and submarginal
farmland acquired by the federal government as may
bethat is suitable for the purpose of creating
and maintaining State-controlledState
forests, game refuges, public shooting grounds, State parks,
State lakes, and other recreational areas, or to enter into
longtime leases with the federal government for such
the areas and administer them with funds
as may be secured from their administration in
the best interest of longtime public use, supplemented by any
necessary appropriations as may
be made by the General Assembly. The Department may
segregate revenue derived from State hunting and fishing
licenses, use permits, and concessions and other proper revenue
secured through the administration of such
State forests, game refuges, public shooting
grounds, State parks, State lakes, and other recreational areas
to be deposited in the State treasury to the credit of the
Department to be used for the administration of these areas.
(c) The Department, with the approval of the Governor and
Council of State, may enter into leases of lands and waters for
State parks, State lakes lakes, and
recreational purposes; and the Department may construct,
operate, and maintain on the lands and waters suitable public
service facilities and conveniences and may charge and collect
reasonable fees for each of the following:
(1) The erection,
maintenance and use of docks, piers and other
structures as may be permitted in or on the waters
under its own rules.
(2) Fishing privileges in
the waters, provided that the privileges shall be
extended only to holders of bona fide North
Carolina fishing licenses, and provided further
that all State fishing laws and rules are complied
with.purposes.
(d) The Department may make
reasonable rules for the operation and use of boats or other
craft on the surface of the waters but shall not charge or
collect fees for the operation or use of boats or other
craft.
(e) The Department may make
reasonable rules for the regulation of the public use of the
lands and waters and of public service facilities and
conveniences constructed thereon, and the rules shall have the
force and effect of law and any violation of the rules shall
constitute a Class 3 misdemeanor.
(f) The authority herein granted to the
Department under this section is in addition to
other any authority now held and
exercised bygranted to the
Department.Department under any other
provision of law."
SECTION 35.1.(b) G.S. 113-35 reads as rewritten:
"§ 113-35. State timber may be sold by Department of
Environment and Natural Resources;
Department; forest nurseries; control
over parks, etc.; parks;
operation of public service facilities; concessions to
private concerns.concerns; authority
to charge fees and adopt rules.
(a)Timber and other products of such
State forestlands forests may
be sold, cut cut, and removed under
rules of the Department. The Department shall have
authority tomay establish and operate forest
tree nurseries and forest tree seed orchards. Forest tree
seedlings and seed from these nurseries and seed orchards may be
sold to landowners of the State for purposes of forestation
under rules of adopted by the
Department. When the Secretary determines that a surplus of
seedlings or seed exists, this surplus may be sold, and
such the sale shall be in conformity
with the following priority of sale: first, to agencies of the
federal government for planting in the State of North Carolina;
second, to commercial nurseries and nurserymen within this
State; and third, without distinction, to federal agencies, to
other states, and to recognized research organizations for
planting either within or outside of this State. The Department
shall make reasonable rules for the regulation
ofgoverning the use by the public of
such and all State forests, State parks, State
lakes, game refuges refuges, and public
shooting grounds under its charge, which
rules, after having been charge. These rules
shall be posted in conspicuous places on and adjacent to
such the properties of the State and at
the courthouse of the county or counties in which such
the properties are situated shall have
the force and effect of law and any located. A
violation of such these rules
shall constituteis punishable as a Class
3 misdemeanor.
(a1)The Department may adopt rules under which the Secretary
may issue a special-use permit authorizing the use of
pyrotechnics in State parks in connection with public
exhibitions. The rules shall require that experts supervise the
use of pyrotechnics and that written authorization for the use
of pyrotechnics be obtained from the board of commissioners of
the county in which the pyrotechnics are to be used, as provided
in G.S. 14-410. The Secretary may impose any conditions on a
permit that the Secretary determines to be necessary to protect
public health, safety, and welfare. These conditions
include, but are not limited to,shall
include a requirement that the permittee execute an
indemnification agreement with the Department and obtain general
liability insurance covering personal injury and property damage
that may result from the use of pyrotechnics with policy limits
as determined by the Secretary.
(b) The Department may construct and
operateconstruct, operate, and maintain within
the State forests, State parks, State lakes
lakes, and any other areas
under its charge suitable public service facilities and
conveniences, and may charge and collect reasonable fees for the
use of same; it these facilities and
conveniences. The Department may also charge and collect
reasonable fees for:for each of the
following:
(1) The erection, maintenance
maintenance, and use of docks,
piers piers, and
such any other structures
as may be permitted in or on State
lakes under its own rules;rules
adopted by the Department.
(2) Hunting privileges on State forests and fishing
privileges in State forests, State parks
parks, and State lakes, provided
that such these privileges
shall be extended only to holders of bona
fide North CarolinaState hunting
and fishing licenses, and provided further
that licenses who comply with all
State game and fish laws are complied
with.laws.
(3) Vehicle access for off-road driving at
the beach at Fort Fisher State Recreation Area.
(c) The Department may make reasonable rules for the
operation and use of boats or other craft on the surface of the
said waters under its charge but shall
not be authorized to charge or collect fees for
such their operation or use.
(d) The Department may also grant to private
individuals or companies concessions for operation of public
service facilities for such periods and upon such conditions as
the Department shall deemdeems to be in
the public interest. The Department may make
adopt reasonable rules for the regulation of the
use by the public of the lands and waters under its charge
and of the public service facilities and conveniences
herein authorized, which rules shall have the force and
effect of law, and anyauthorized under this section.
A violation of such these rules
shall constituteis punishable as a Class
3 misdemeanor.
(e) The authority granted to the Department under
this section is in addition to any authority granted to the
Department under any other provision of law."
SECTION 35.1.(c) Notwithstanding G.S. 150B-21.1,
the Department of Environment and Natural Resources may adopt
temporary rules to establish fees under G.S. 113-35(b)(3), as
amended by subsection (b) of this section, within six months
after the effective date of this section.
SECTION 35.1.(d) This section becomes effective
July 1, 2003.
SECTION 35.1A.(a) G.S. 113-35(b), as amended in
Section 35.1(b) of this act, reads as rewritten:
"(b)The Department may construct, operate, and maintain
within the State forests, State parks, State lakes, and other
areas under its charge suitable public service facilities and
conveniences, and may charge and collect reasonable fees for the
use of these facilities and conveniences. The Department may
also charge and collect reasonable fees for each of the
following:
(1) The erection, maintenance, and use of docks, piers,
and any other structures permitted in or on State
lakes under rules adopted by the Department.
(2) Hunting privileges on State forests and fishing
privileges in State forests, State parks, and State
lakes, provided that these privileges shall be
extended only to holders of State hunting and
fishing licenses that comply with all State game
and fish laws.
(3) Vehicle access for off-road driving at the beach at
Fort Fisher State Recreation Area.
(4) The erection, maintenance, and use of
a marina at Carolina Beach."
SECTION 35.1A.(b) G.S. 113-35(c), as amended in
Section 35.1(b) of this act, reads as rewritten:
"(c)The Department may make reasonable rules for the
operation and use of boats or other craft on the surface of the
waters under its charge, but shall not charge or
collect fees for their operation or use.charge. The
Department may charge and collect reasonable fees for the use of
boats and other watercraft that are purchased and maintained by
the Department; however, the Department shall not charge a fee
for the use or operation of any other boat or watercraft on
these waters."
SECTION 35.1A.(c) The Department of Environment
and Natural Resources may adopt temporary rules to increase fees
under G.S. 113-35, as amended by subsections (a) and (b) of this
section, for the use of public service facilities and
conveniences located in State forests, State parks, State lakes,
and other areas under the charge of the Division of Parks and
Recreation.
SECTION 35.1A.(d) This section becomes effective
July 1, 2003.
SECTION 35.2.(a) G.S. 130A-294.1(e) reads as
rewritten:
"(e)A person who generates either one kilogram or more of any
acute hazardous waste as listed in 40 C.F.R. § 261.30(d) or §
261.33(e) as revised 1 July 1987, or 1000 kilograms or more of
hazardous waste, in any calendar month during the year beginning
1 July and ending 30 June shall pay an annual fee of
five hundred dollars ($500.00).one thousand
dollars ($1,000)."
SECTION 35.2.(b) G.S. 130A-294.1(f) reads as
rewritten:
"(f)A person who generates 100 kilograms or more of hazardous
waste in any calendar month during the year beginning 1 July and
ending 30 June but less than 1000 kilograms of hazardous waste
in each calendar month during that year shall pay an annual fee
of twenty-five dollars ($25.00).one hundred
twenty-five dollars ($125.00)."
SECTION 35.2.(c) This section becomes effective
July 15, 2003.
DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES FEES
SECTION 35.3.(a) The budget for the Department of
Agriculture and Consumer Services reflects increases made by the
Department to fees established under G.S. 106-6.1 for animal
disease diagnostic tests and services.
SECTION 35.3.(b) The Board of Agriculture may
adopt temporary rules to increase the fee to be collected under
G.S. 106-420 for nursery dealer certification.
SECTION 35.3.(c) This section becomes effective
July 1, 2003.
PESTICIDE FEES
SECTION 35.4.(a) G.S. 143-452(b) reads as
rewritten:
"(b)Applications for pesticide applicator license shall be in
the form and shall contain the information prescribed by the
Board. Each application shall be accompanied by a non-refundable
fee of thirty dollars ($30.00) fifty dollars
($50.00) for each pesticide applicator's license. In
addition, an annual inspection fee of ten dollars
($10.00)twenty-five dollars ($25.00) shall be
submitted for each aircraft to be licensed. Should any aircraft
fail to pass inspection, making it necessary for a second
inspection to be made, the Board shall require an additional
ten dollar ($10.00)twenty-five-dollar
($25.00) inspection fee. In addition to the required
inspection, unannounced inspections may be made without charge
to determine if equipment is properly calibrated and maintained
in conformance with the laws and regulations. All aircraft
licensed to apply pesticides shall be identified by a license
plate or decal furnished by the Board at no cost to the
licensee, which plate or decal shall be affixed on the aircraft
in a location and manner prescribed by the Board. No applicator
inspection or license fee, original or renewal, shall be charged
to State agencies or local governments or their employees.
Inspections of ground pesticide application equipment may be
made. Any such equipment determined to be faulty or unsafe shall
not be used for the purpose of applying a pesticide(s) until
such time as proper repairs and/or alterations are made."
SECTION 35.4.(b) G.S. 143-448(b) reads as
rewritten:
"(b)Applications for a pesticide dealer license shall be in
the form and shall contain the information prescribed by the
Board. Each application shall be accompanied by a non-refundable
fee of thirty dollars ($30.00).fifty dollars
($50.00). All licenses issued under this Part shall expire
on December 31 of the year for which they are issued."
SECTION 35.4.(c) G.S. 143-448(c) reads as
rewritten:
"(c)The license for a pesticide dealer may be renewed
annually upon application to the Board, accompanied by a fee of
thirty dollars ($30.00)fifty dollars
($50.00) for each license, on or before the first day of
January of the calendar year for which the license is issued."
SECTION 35.4.(d) G.S. 143-455(a) reads as
rewritten:
"(a)No person shall perform services as a pest control
consultant without first procuring from the Board a license.
Applications for a consultant license shall be in the form and
shall contain the information prescribed by the Board. The
application for a license shall be accompanied by a
non-refundable annual fee of thirty dollars
($30.00).fifty dollars ($50.00)."
SECTION 35.4.(e) G.S. 143-442(b) reads as
rewritten:
"(b)The applicant shall pay an annual registration fee of
thirty dollars ($30.00) one hundred dollars
($100.00) plus an additional annual assessment for each
brand or grade of pesticide registered. The annual assessment
shall be fifty dollars ($50.00) if the applicant's gross sales
of the pesticide in this State for the preceding 12 months for
the period ending September 30th were more than five thousand
dollars ($5,000.00) and twenty-five dollars ($25.00) if gross
sales were less than five thousand dollars ($5,000.00). An
additional two hundred dollars ($200.00) delinquent registration
penalty shall be assessed against the registrant for each brand
or grade of pesticide which is marketed in North Carolina prior
to registration as required by this Article. In the case of
multi-year registration, the annual fee and additional
assessment for each year shall be paid at the time of the
initial registration. The Board shall give a pro rata refund of
the registration fee and additional assessment to the registrant
in the event that registration is canceled by the Board or by
the United States Environmental Protection Agency."
SECTION 35.4.(f) This section becomes effective
July 15, 2003.
PART XXXV-A. DEPARTMENT OF CULTURAL RESOURCES FEES
DEPARTMENT OF CULTURAL RESOURCES FEES
SECTION 35A.1. G.S. 105-129.35 reads as rewritten:
"§ 105-129.35. Credit for rehabilitating income-producing
historic structure.
(a)Credit. - A taxpayer who is allowed a federal income
tax credit under section 47 of the Code for making qualified
rehabilitation expenditures for a certified historic structure
located in this State is allowed a credit equal to twenty
percent (20%) of the expenditures that qualify for the federal
credit. To claim the credit allowed by this subsection, the
taxpayer must provide a copy of the certification obtained from
the State Historic Preservation Officer verifying that the
historic structure has been rehabilitated in accordance with
this subsection.
(b) Allocation. - Notwithstanding the provisions of G.S.
105-131.8 and G.S. 105-269.15, a pass-through entity that
qualifies for the credit provided in this section may allocate
the credit among any of its owners in its discretion as long as
the amount of credit allocated to an owner does not exceed the
owner's adjusted basis in the pass-through entity, as determined
under the Code, at the end of the taxable year in which the
certified historic structure is placed in service. Owners to
whom a credit is allocated are allowed the credit as if they had
qualified for the credit directly. A pass-through entity and its
owners must include with their tax returns for every taxable
year in which an allocated credit is claimed a statement of the
allocation made by the pass-through entity and the allocation
that would have been required under G.S. 105-131.8 or G.S.
105-269.15.
(c) Definitions. - The following definitions apply in this
section:
(1) Certified historic structure. - Defined in section
47 of the Code.
(2) Pass-through entity. - An entity or business,
including a limited partnership, a general
partnership, a joint venture, a Subchapter S
Corporation, or a limited liability company, all of
which is treated as owned by individuals or other
entities under the federal tax laws, in which the
owners report their share of the income, losses,
and credits from the entity or business on their
income tax returns filed with this State. For the
purpose of this section, an owner of a pass-through
entity is an individual or entity who is treated as
an owner under the federal tax laws.
(3) Qualified rehabilitation expenditures. - Defined in
section 47 of the Code.
(4) State Historic Preservation Officer. -
Defined in G.S. 105-129.6."
SECTION 35A.2. G.S. 105-129.36(c) is recodified
as G.S. 105-129.36A and reads as rewritten:
"§ 105-129.36A. Rules.Rules; fees.
(a) Rules. - The North Carolina
Historical Commission, in consultation with the State Historic
Preservation Officer, may adopt rules needed to administer the
certification process required by this section.
(b) Fees. - The North Carolina Historical
Commission, in consultation with the State Historic Preservation
Officer, may adopt a schedule of fees for providing
certifications required by this Article. In establishing the fee
schedule, the Commission shall consider the administrative and
personnel costs incurred by the Department of Cultural
Resources. An application fee may not exceed one percent (1%) of
the completed qualifying rehabilitation expenditures. The
proceeds of the fees are receipts of the Department of Cultural
Resources and must be used for performing its duties under this
Article."
SECTION 35A.3. G.S. 105-129.36(a) reads as
rewritten:
"(a)Credit. - A taxpayer who is not allowed a federal income
tax credit under section 47 of the Code and who makes
rehabilitation expenses for a State-certified historic structure
located in this State is allowed a credit equal to thirty
percent (30%) of the rehabilitation expenses. To qualify for the
credit, the taxpayer's rehabilitation expenses must exceed
twenty-five thousand dollars ($25,000) within a 24-month period.
To claim the credit allowed by this subsection, the taxpayer
must attach to the returnprovide a copy
of the certification obtained from the State Historic
Preservation Officer verifying that the historic structure has
been rehabilitated in accordance with this subsection."
SECTION 35A.4. Article 1 of Chapter 121 of the
General Statutes is amended by adding a new section to read:
"§ 121-7.3. Admission fees.
The Department of Cultural Resources may charge a
reasonable admission fee to any museum administered by the
Department. Admission fees collected under this section are
receipts of the Department and shall be deposited in a
nonreverting account. The Department shall retain unbudgeted
receipts at the end of each fiscal year, beginning June 30,
2004, and shall deposit these receipts into the account. Funds
in the account shall be used to support a portion of each
museum's operation. The Secretary may adopt rules necessary to
carry out the provisions of this section. The Department shall
provide a quarterly report to the Joint Legislative Commission
on Governmental Operations as to the Department's or museums'
anticipated use of funds or expenditures of funds pursuant to
this section."
SECTION 35A.5. This part becomes effective July
15, 2003.
PART XXXV-B. SECRETARY OF STATE FEES
SECRETARY OF STATE FEES
SECTION 35B.1.(a) G.S. 25-9-525(a) reads as
rewritten:
"(a)Initial financing statement or other record: general
rule. - Except as otherwise provided in subsection (e) of this
section, the fee for filing and indexing a record under this
Part is:
(1) Thirty-eight dollars ($38.00)Thirty
dollars ($30.00) if the record is
communicated in writing and consists of one or two
pages;
(2) Forty-five dollars ($45.00) if the record is
communicated in writing and consists of more than
two pages, plus two dollars ($2.00) for each page
over 10 pages; and
(3) Thirty dollars ($30.00) if the record is
communicated by another medium authorized by
filing-office rule."
SECTION 35B.1.(b) G.S. 25-9-525(d) reads as
rewritten:
"(d)Response to information request. - The fee for responding
to a request for information from the filing office, including
for communicating whether there is on file any financing
statement naming a particular debtor, is:
(1) Thirty-eight dollars ($38.00)Thirty
dollars ($30.00) if the request is
communicated in writing; and
(2) Thirty dollars ($30.00) if the request is
communicated by another medium authorized by
filing-office rule.
Upon request the filing office shall furnish a copy of any filed
financing statement or statement of assignment for a uniform fee
of two dollars ($2.00) per page. This subsection does not
require that a fee be charged for remote access searching of the
filing office database."
SECTION 35B.1.(c) This section becomes effective
July 15, 2003.
SECTION 35B.2.(a) G.S. 78A-31(b) reads as
rewritten:
"(b)With regard to any security that is covered under section
18(b)(4)(D) of the Securities Act of 1933 (15 U.S.C. §
77r(b)(4)(d)), the Administrator, by rule or order, may require
the issuer to file a notice on SEC Form D (17 C.F.R. § 239.500)
and a consent to service of process signed by the issuer no
later than 15 days after the first sale of the security in this
State. There is established a fee of one hundred fifty
dollars ($150.00) three hundred fifty dollars
($350.00) to recover costs for filing required by this
section."
SECTION 35B.2.(b) This section becomes effective
July 15, 2003.
SECTION 35B.3.(a) G.S. 66-97(a) reads as
rewritten:
"(a)The seller of every business opportunity shall file with
the Secretary of State two copies of the disclosure statement
required by G.S. 66-95, accompanied by a fee in the amount of
ten dollars ($10.00)two hundred fifty
dollars ($250.00) made payable to the Secretary of State,
prior to placing any advertisement or making any other
representations to prospective purchasers in this State. The
seller shall update this filing as any material change in the
required information occurs, but no less than annually."
SECTION 35B.3.(b) This section becomes effective
July 15, 2003.
PART XXXVI. DEPARTMENT OF TRANSPORTATION FEES
INCREASE DRIVERS LICENSE AND MOTORCYCLE ENDORSEMENT FEES TO
FUND ADDITIONAL DIVISION OF MOTOR VEHICLE DRIVERS LICENSE
EXAMINERS
SECTION 36.1. G.S. 20-7(i) reads as rewritten:
"(i)Fees. - The fee for a regular drivers license is the
amount set in the following table multiplied by the number of
years in the period for which the license is issued:
Class of Regular License Fee For Each
Year
Class A $3.75
$4.25
Class B 3.75
4.25
Class C 2.50
3.00
The fee for a motorcycle endorsement is one dollar and
twenty-five cents ($1.25) seventy-five cents
($1.75) for each year of the period for which the
endorsement is issued. The appropriate fee must
shall be paid before a person receives a regular
drivers license or an endorsement."
SECTION 36.2. This part becomes effective
November 1, 2003.
PART XXXVI-A. JUSTICE AND PUBLIC SAFETY FEES
ARBITRATION FEE
SECTION 36A.1. G.S. 7A-37.1 is amended by adding a
new subsection to read:
"(c1)In cases referred to nonbinding arbitration as
provided in this section, a fee of one hundred dollars ($100.00)
shall be assessed per arbitration, to be divided equally among
the parties, to cover the cost of providing arbitrators. 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."
SUPERIOR COURT FEES ROUNDING
SECTION 36A.2. G.S. 7A-308(a) reads as rewritten:
"(a)The following miscellaneous fees and commissions shall be
collected by the clerk of superior court and remitted to the
State for the support of the General Court of Justice:
(1) Foreclosure under power of sale in
deed of trust or mortgage $60.00
If the property is sold under the power of sale, an
additional amount will be charged, determined by
the following formula: forty-five cents (.45) per
one hundred dollars ($100.00), or major fraction
thereof, of the final sale price. If the amount
determined by the formula is less than ten dollars
($10.00), a minimum ten dollar ($10.00) fee will be
collected. If the amount determined by the formula
is more than three hundred dollars ($300.00), a
maximum three hundred dollar ($300.00) fee will be
collected.
(2) Proceeding supplemental to execution 30.00
(3) Confession of judgment
22.5025.00
(4) Taking a deposition 10.00
(5) Execution
22.5025.00
(6) Notice of resumption of former name
7.5010.00
(7) Taking an acknowledgment or administering
an oath, or both, with or without seal,
each certificate (except that oaths of
office shall be administered to public
officials without charge)
$1.502.00
(8) Bond, taking justification or approving
7.5010.00
(9) Certificate, under seal 3.00
(10)Exemplification of records
7.5010.00
(11)Recording or docketing (including indexing)
any document - first page 6.00
- each additional page or fraction thereof .25
(12)Preparation of copies
- first page
1.502.00
- each additional page or fraction thereof .25
(13)Preparation and docketing of transcript of judgment
7.5010.00
(14)Substitution of trustee in deed of trust
7.5010.00
(15)Execution of passport application - the
amount allowed by federal law
(16)Repealed by Session Laws 1989, c. 783, s. 2.
(17)Criminal record search except if search is
requested by an agency of the State or any
of its political subdivisions or by an
agency of the United States or by a
petitioner in a proceeding under Article 2
of General Statutes Chapter 20
7.5010.00
(18)Filing the affirmations, acknowledgments,
agreements and resulting orders entered
into under the provisions of G.S. 110-132
and G.S. 110-133 6.00
(19)Repealed by Session Laws 1989, c. 783, s. 3.
(20)Filing a motion to assert a right of access under
G.S. 1-72.1 30.00."
SECTION 36A.3. This part becomes effective
August 1, 2003.
PART XXXVII. ADJUST LOCAL GOVERNMENT HOLD HARMLESS
ADJUST LOCAL GOVERNMENT HOLD HARMLESS
SECTION 37.1. G.S. 105-521 reads as rewritten:
"§ 105-521. Transitional local government hold harmless.
(a)Definitions. - The following definitions apply in this
section:
(1) Local government. - A county or municipality that
received a distribution of local sales taxes in the
most recent fiscal year for which a local sales tax
share has been calculated.
(2) Local sales tax share. - A local government's
percentage share of the two-cent (2¢) sales taxes
distributed during the most recent fiscal year for
which data are available.
(3) Repealed reimbursement amount. - The total amount a
local government would have been entitled to
receive during the 2002-2003 fiscal year under G.S.
105-164.44C, 105-275.1, 105-275.2, 105-277.001, and
105-277.1A, if the Governor had not withheld any
distributions under those sections.
(4) Two-cent (2¢) sales taxes. - The first one-cent
(1¢) sales and use tax authorized in Article 39 of
this Chapter and in Chapter 1096 of the 1967
Session Laws, the first one-half cent (1/2¢) local
sales and use tax authorized in Article 40 of this
Chapter, and the second one-half cent (1/2¢) local
sales and use tax authorized in Article 42 of this
Chapter.
(b) Distributions. - On or before September
August 15, 2003, and each September 15
thereafter,August 15, 2004, the Secretary must
multiply each local government's local sales tax share by the
estimated amount that all local governments would be expected to
receive during the current fiscal year under G.S. 105-520 if
every county levied the tax under this Article for the year. If
the resulting amount is less than one hundred percent (100%) of
the local government's repealed reimbursement amount, the
Secretary must pay the local government the difference, but not
less than one hundred dollars ($100.00).
On or before May 1, 2003, and each May 1
thereafter,May 1, 2004, the Office of State
Budget and Management and the Fiscal Research Division of the
General Assembly must each submit to the Secretary and to the
General Assembly a final projection of the estimated amount that
all local governments would be expected to receive during the
upcoming fiscal year under G.S. 105-520 if every county levied
the tax under this Article for the fiscal year. If, after May
1 and before a distribution is made, a law is enacted that would
affect the projection, an updated projection must be submitted
as soon as practicable. If the Secretary does not use the
lower of the two final projections to make the calculation
required by this subsection, the Secretary must report the
reasons for this decision to the Joint Legislative Commission on
Governmental Operations within 60 days after receiving the
projections.
(c) Source of Funds. - The Secretary must draw the funds
distributed under this section from sales and use tax
collections under Article 5 of this Chapter.
(d) Reports. - The Secretary must report to the Revenue Laws
Study Committee by January 31, 2004, and each January 31
thereafter,January 31, 2005, the amount
distributed under this section for the current fiscal year."
SECTION 37.2. It is the intent of the General
Assembly that the distribution under G.S. 105-521 will be
extended through 2012.
PART XXXVII-A. UPDATE INTERNAL REVENUE CODE REFERENCE AND
ADJUST BONUS DEPRECIATION AND ESTATE TAX
UPDATE INTERNAL REVENUE CODE REFERENCE
SECTION 37A.1. G.S. 105-228.90(b)(1b), as amended
by S.L. 2003-25, reads as rewritten:
(b) Definitions. - The following definitions apply in this
Article:
. . .
(1b) Code. - The Internal Revenue Code as enacted as of
January June 1, 2003,
including any provisions enacted as of that date
which become effective either before or after that
date."
ADJUST BONUS DEPRECIATION
SECTION 37A.2. G.S. 105-134.6(c)(8) reads as
rewritten:
"(c)Additions. - The following additions to taxable income
shall be made in calculating North Carolina taxable income, to
the extent each item is not included in taxable income:
. . .
(8) The applicable percentage of the amount allowed as
a thirty percent (30%) special
accelerated depreciation deduction under
section 168(k) or section 1400L of the Code, as set
out in the table below. In addition, a taxpayer who
was allowed a thirty percent (30%)
special accelerated depreciation
deduction under section 168(k) or section 1400L of
the Code in a taxable year beginning before January
1, 2002, and whose North Carolina taxable income in
that earlier year reflected that accelerated
depreciation deduction must add to federal taxable
income in the taxpayer's first taxable year
beginning on or after January 1, 2002, an amount
equal to the amount of the deduction allowed in the
earlier taxable year. These adjustments do not
result in a difference in basis of the affected
assets for State and federal income tax purposes.
The applicable percentage is as follows:
Taxable Year Percentage
2002 100%
2003 70%
2004 70%
2005 and thereafter0%"
SECTION 37A.3. G.S. 105-130.5(a)(15) reads as
rewritten:
"(a)The following additions to federal taxable income shall
be made in determining State net income:
...
(15) The applicable percentage of the amount allowed as
a thirty percent (30%) special
accelerated depreciation deduction under
section 168(k) or section 1400L of the Code, as set
out in the table below. In addition, a taxpayer who
was allowed a thirty percent (30%)
special accelerated depreciation
deduction under section 168(k) or section 1400L of
the Code in a taxable year beginning before January
1, 2002, and whose North Carolina taxable income in
that earlier year reflected that accelerated
depreciation deduction must add to federal taxable
income in the taxpayer's first taxable year
beginning on or after January 1, 2002, an amount
equal to the amount of the deduction allowed in the
earlier taxable year. These adjustments do not
result in a difference in basis of the affected
assets for State and federal income tax purposes.
The applicable percentage is as follows:
Taxable Year Percentage
2002 100%
2003 70%
2004 70%
2005 and thereafter0%"
ADJUST ESTATE TAX
SECTION 37A.4. Section 30C.3(b) of S.L. 2002-126
reads as rewritten:
"SECTION 30C.3.(b) This section is effective on and
after January 1, 2002, and applies to the estates of decedents
dying on or after that date. This section is repealed effective
for the estates of decedents dying on or after January
1, 2004. July 1, 2005."
SECTION 37A.5. G.S. 105-32.2(b) reads as
rewritten:
"(b)Amount. - The amount of the estate tax imposed by this
section for estates of decedents dying on or after January 1,
2002, is the maximum credit for state death taxes allowed under
section 2011 of the Code without regard to the phase-out and
termination of that credit under subdivision (b)(2) and
subsection (f) of that section. If any property in the
estate is located in a state other than North Carolina, the
amount of tax payable depends on whether the decedent was a
resident of this State at death. If the decedent was a resident
of this State at death, the amount of tax due under this section
is reduced by the lesser of the amount of the death tax paid the
other state or an amount computed by multiplying the credit by a
fraction, the numerator of which is the gross value of the
estate that has a tax situs in another state and the denominator
of which is the value of the decedent's gross estate. If the
decedent was not a resident of this State at death, the amount
of tax due under this section is an amount computed by
multiplying the credit by a fraction, the numerator of which is
the gross value of real property that is located in North
Carolina plus the gross value of any personal property that has
a tax situs in North Carolina and the denominator of which is
the value of the decedent's gross estate. For purpses of this
section, the gross value of property is its gross value as
finally determined in the federal estate tax proceedings."
SECTION 37A.6. This part is effective when this
act becomes law.
PART XXXVIII. TEMPORARILY MAINTAIN STATE SALES TAX RATE
TEMPORARILY MAINTAIN STATE SALES TAX RATE
SECTION 38.1. Section 34.13(c) of S.L. 2001-424
reads as rewritten:
"SECTION 34.13.(c) This section becomes effective
October 16, 2001, and applies to sales made on or after that
date. This section is repealed effective for sales made on or
after July 1, 2005. 2003. This section
does not affect the rights or liabilities of the State, a
taxpayer, or another person arising under a statute amended or
repealed by this section before the effective date of its
amendment or repeal; nor does it affect the right to any refund
or credit of a tax that accrued under the amended or repealed
statute before the effective date of its amendment or repeal."
PART XXXIX. TEMPORARILY MAINTAIN UPPER INCOME TAX RATE
TEMPORARILY MAINTAIN UPPER INCOME TAX RATE
SECTION 39.1. Effective for taxable years beginning
on or after January 1, 2006, G.S. 105-134.2(a) reads as
rewritten:
"(a)A tax is imposed upon the North Carolina taxable income
of every individual. The tax shall be levied, collected, and
paid annually and shall be computed at the following percentages
of the taxpayer's North Carolina taxable income.
(1) For married individuals who file a joint return
under G.S. 105-152 and for surviving spouses, as
defined in section 2(a) of the Code:
Over Up To Rate
-0- $21,250 6%
$21,250 $100,000 7%
$100,000
$200,000NA 7.75%
$200,000
NA
8.25%
(2) For heads of households, as defined in section 2(b)
of the Code:
Over Up To Rate
-0- $17,000 6%
$17,000 $80,000 7%
$80,000
$160,000NA 7.75%
$160,000
NA
8.25%
(3) For unmarried individuals other than surviving
spouses and heads of households:
Over Up To Rate
-0- $12,750 6%
$12,750 $60,000 7%
$60,000
$120,000NA 7.75%
$120,000
NA
8.25%
(4) For married individuals who do not file a joint
return under G.S. 105-152:
Over Up To Rate
-0- $10,625 6%
$10,625 $50,000 7%
$50,000
$100,000NA 7.75%
$100,000
NA
8.25%"
SECTION 39.2. Section 34.18(b) of S.L. 2001-424
reads as rewritten:
"SECTION 34.18.(b) This section becomes effective for
taxable years beginning on or after January 1, 2001, and
expires for taxable years beginning on or after January 1,
2004.2001. Notwithstanding G.S. 105-163.15, no
addition to tax may be made under that statute for a taxable
year beginning on or after January 1, 2001, and before January
1, 2002, with respect to an underpayment of individual income
tax to the extent the underpayment was created or increased by
this section."
PART XXXIX-A. RESERVED.
PART XXXIX-B. CONFORM CHILD TAX CREDIT TO FEDERAL CREDIT
CONFORM CHILD TAX CREDIT TO FEDERAL CREDIT
SECTION 39B.1. Reserved.
SECTION 39B.2. G.S. 105-151.24 reads as
rewritten:
"§ 105-151.24. Credit for children.
(a) Credit. - An individual who is
allowed a federal child tax credit under section 24 of the Code
for the taxable year and whose adjusted gross income (AGI),
as calculated under the Code, is less than the amount listed
below is allowed a credit against the tax imposed by this Part
in an amount equal to seventy-five dollars ($75.00) for each
dependent child for whom the individual was
is allowed to deduct a personal
exemption under section 151(c)(1)(B) of the Codethe
federal credit for the taxable year:
Filing Status
AGI
Married, filing jointly $100,000
Head of Household 80,000
Single
60,000
Married, filing separately 50,000.
(b) Limitations. - A nonresident or part-year
resident who claims the credit allowed by this section shall
reduce the amount of the credit by multiplying it by the
fraction calculated under G.S. 105-134.5(b) or (c), as
appropriate. The credit allowed under this section may not
exceed the amount of tax imposed by this Part for the taxable
year reduced by the sum of all credits allowed, except payments
of tax made by or on behalf of the taxpayer."
SECTION 39B.3. This part becomes effective for
taxable years beginning on or after January 1, 2003.
PART XL. RESERVED
PART XLI. RESERVED
PART XLII. RESERVED
PART XLIII. EQUALIZE INSURANCE TAX RATES ON ARTICLE 65
CORPORATIONS
EQUALIZE INSURANCE TAX RATES ON ARTICLE 65 CORPORATIONS
SECTION 43.1. G.S. 105-228.5(d) reads as rewritten:
"(d)Tax Rates; Disposition. -
(1) Workers' Compensation. - The tax rate to be applied
to gross premiums, or the equivalent thereof in the
case of self-insurers, on contracts applicable to
liabilities under the Workers' Compensation Act is
two and five-tenths percent (2.5%). The net
proceeds shall be credited to the General Fund.
(2) Other Insurance Contracts. - The tax rate to be
applied to gross premiums on all other taxable
contracts issued by insurers and to be applied
to gross premiums and gross collections from
membership dues, exclusive of receipts from cost
plus plans, received by Article 65 corporations
is one and nine-tenths percent (1.9%). The net
proceeds shall be credited to the General Fund.
(3) Additional Statewide Fire and Lightning Rate. - An
additional tax shall be applied to gross premiums
on contracts of insurance applicable to fire and
lightning coverage, except in the case of marine
and automobile policies, at the rate of one and
thirty-three hundredths percent (1.33%).
Twenty-five percent (25%) of the net proceeds of
this additional tax shall be deposited in the
Volunteer Fire Department Fund established in
Article 87 of Chapter 58 of the General Statutes.
The remaining net proceeds shall be credited to the
General Fund.
(4) Additional Local Fire and Lightning Rate. - An
additional tax shall be applied to gross premiums
on contracts of insurance applicable to fire and
lightning coverage within fire districts at the
rate of one-half of one percent (1/2 of 1%). The
net proceeds shall be credited to the Department of
Insurance for disbursement pursuant to G.S.
58-84-25.
(5) (Effective January
1, 2004) Article 65 Corporations. - The tax
rate to be applied to gross premiums and/or gross
collections from membership dues, exclusive of
receipts from cost plus plans, received by Article
65 corporations is one percent (1%). The net
proceeds shall be credited to the General
Fund.
(6) (Effective January 1, 2004) Health
Maintenance Organizations. - The tax rate to be
applied to gross premiums on insurance contracts
issued by health maintenance organizations
organizations, including directly
operated health maintenance organizations
authorized under G.S. 58-67-95, is one percent
(1%). The net proceeds shall be credited to the
General Fund."
SECTION 43.2. G.S. 58-6-25(a) and (e) read as
rewritten:
"(a)Charge Levied. - There is levied on each insurance
company an annual charge for the purposes stated in subsection
(d) of this section. The charge levied in this section is in
addition to all other fees and taxes. The percentage rate of the
charge is established pursuant to subsection (b) of this
section. For each insurance company that is not an
Article 65 corporation nor a health maintenance
organization, the rate is applied to the company's premium tax
liability for the taxable year. For Article 65
corporations and health maintenance organizations, the
rate is applied to a premium tax liability for the taxable year
calculated as if the corporation or organization were paying tax
at the rate in G.S. 105-228.5(d)(2). In determining an insurance
company's premium tax liability for a taxable year, the
following shall be disregarded:
(1) Additional taxes imposed by G.S. 105-228.8.
(2) The additional local fire and lightning tax imposed
by G.S. 105-228.5(d)(4).
(3) Any tax credits for guaranty or solvency fund
assessments under G.S. 105-228.5A or G.S.
97-133(a).
(4) Any tax credits allowed under Chapter 105 of the
General Statutes other than tax payments made by or
on behalf of the taxpayer.
...
(e) Definitions. - The following definitions apply in this
section:
(1) Article 65 corporation.
- Defined in G.S. 105-228.3.
(2) Insurance company. - A company that pays the gross
premiums tax levied in G.S. 105-228.5 and G.S.
105-228.8.
(3) Insurer. - Defined in G.S. 105-228.3."
SECTION 43.3. Notwithstanding the provisions of
G.S 105-228.5(f), the following provisions apply to Article 65
Corporations, as defined in G.S. 105-228.3, for the 2004 and
2005 taxable years in lieu of the provisions of G.S.
105-228.5(f):
Article 65 corporations that are subject to the tax
imposed by G.S. 105-228.5 and have an estimated premium tax
liability for the 2004 or 2005 taxable year, not including the
additional local fire and lightning tax, of ten thousand dollars
($10,000) or more for business done in North Carolina shall
remit two estimated tax payments with each payment equal to
fifty percent (50%) of the taxpayer's estimated premium tax
liability for the relevant taxable year. The first estimated
payment is due on or before April 15 of the relevant year and
the second estimated payment is due on or before June 15 of the
relevant year. The taxpayer must remit the balance by the
following March 15 in the same manner provided in G.S.
105-228.5(e) for annual returns.
An underpayment of an estimated payment required by this
section bears interest at the rate established under G.S.
105-241.1(i). Any overpayment bears interest as provided in G.S.
105-266(b) and, together with the interest, must be credited to
the taxpayer and applied against the taxes imposed upon the
company under G.S. 105-228.5.
The penalties provided in Article 9 of Chapter 105 of
the General Statutes apply to the estimated tax payments
required by this section.
SECTION 43.4. This part is effective for taxable
years beginning on or after January 1, 2004. The Commissioner of
Insurance must make a certification to the Secretary of Revenue
and to the Revisor of Statutes when there are no Article 65
corporations that offer medical service plans or hospital
service plans. This part is repealed effective for taxable years
beginning on or after the January 1 immediately following the
certification required by this section.
PART XLIII-A. CLARIFY PROPERTY TAX EXCLUSION FOR PROPERTY
USED TO REDUCE COTTON DUST
PROPERTY TAX EXCLUSION FOR PROPERTY USED TO REDUCE COTTON
DUST
SECTION 43A.1. G.S. 105-275(8)c. reads as
rewritten:
"c. Tangible personal property that is used
exclusively, or if being installed, is to be
used exclusively, for the prevention or
reduction of cotton dust inside a textile
plant for the protection of the health of the
employees of the plant, in accordance with
occupational safety and health standards
adopted by the State of North Carolina
pursuant to Article 16 of G.S. Chapter 95.
Notwithstanding the exclusive use
requirement of this sub-subdivision, all parts
of a ventilation or air conditioning system
that are integrated into a system used for the
prevention or reduction of cotton dust, except
for chillers and cooling towers, are excluded
from taxation under this sub-subdivision.
The Department of Revenue shall adopt
guidelines to assist the tax supervisors in
administering this exclusion."
SECTION 43A.2. This part is effective when it
becomes law.
PART XLIV. CONTINUE USE TAX LINE ITEM ON INCOME TAX FORM
CONTINUE USE TAX LINE ITEM ON INCOME TAX FORM
SECTION 44.1. Section 18 of S.L. 2000-120 reads as
rewritten:
"Section 18. Section 7 of this act becomes effective
January 1, 2001. Sections 10 and 11 of this act become effective
for taxable years beginning on or after January 1,
2003.2005. The remainder of this act is
effective when it becomes law."
PART XLV. CONFORM TO STREAMLINED SALES AND USE TAX AGREEMENT
CONFORM TO STREAMLINED SALES AND USE TAX AGREEMENT
SECTION 45.1. The Streamlined Sales and Use Tax
Agreement is an historic multistate agreement designed to
simplify and modernize sales and use tax collection and
administration. The states and businesses involved in the
Streamlined Sales Tax Project recognize that a simplified and
uniform system saves businesses compliance and audit costs,
while also saving states administrative costs and improving
voluntary compliance, which should increase state collections.
To participate in the Agreement, North Carolina must amend or
modify some of its sales and use tax law to conform to the
simplifications and uniformity in the Agreement. This part
makes those necessary changes.
SECTION 45.2. G.S. 105-164.3 reads as rewritten:
"§ 105-164.3. Definitions.
The following definitions apply in this Article:
...
(4a) Computer. - An electronic device that
accepts information in digital or similar form and
manipulates it for a result based on a sequence of
instructions.
(4b) Computer software. - A set of coded
instructions designed to cause a computer or
automatic data processing equipment to perform a
task.
(5c) Custom computer software. - Computer
software that is not prewritten computer software.
The term includes a user manual or other
documentation that accompanies the sale of the
software.
(5d) Delivered electronically. - Delivered
to the purchaser by means other than tangible
storage media.
...
(7a) Direct mail. - Printed material
delivered or distributed by the United States
Postal Service or other delivery service to a mass
audience or to addresses on a mailing list provided
by the purchaser or at the direction of the
purchaser when the cost of the items is not billed
directly to the recipients. The term includes
tangible personal property supplied directly or
indirectly by the purchaser to the direct mail
seller for inclusion in the package containing the
printed material. The term does not include
multiple items of printed material delivered to a
single address.
...
(8a) Drug. - A compound, substance, or
preparation or a component of one of these that
meets any of the following descriptions and is not
food, a dietary supplement, or an alcoholic
beverage:
a. Is recognized in the United States
Pharmacopoeia, Homeopathic Pharmacopoeia of
the United States, or National Formulary.
b. Is intended for use in the diagnosis,
cure, mitigation, treatment, or prevention of
disease.
c. Is intended to affect the structure or
function of the body.
(8b) Durable medical equipment. - Equipment
that meets all of the conditions of this
subdivision. The term includes repair and
replacement parts for the equipment. The term does
not include mobility enhancing equipment.
a. Can withstand repeated use.
b. Primarily and customarily used to
serve a medical purpose.
c. Generally not useful to a person in
the absence of an illness or injury.
d. Not worn in or on the body.
(8c) Durable medical supplies. - Supplies
related to use with durable medical equipment that
are eligible to be covered under the Medicare or
Medicaid program.
(8d) Electronic. - Relating to technology
having electrical, digital, magnetic, wireless,
optical, electromagnetic, or similar capabilities.
...
(17) Lease or rental. - A transfer, for
consideration, of the use but not the ownership of
property to another for a period of
time.A transfer of possession or
control of tangible personal property for a fixed
or indeterminate term for consideration. The term
does not include any of the following:
a. A transfer of possession or control of
property under a security agreement or
deferred payment plan that requires the
transfer of title upon completion of the
required payments.
b. A transfer of possession or control of
property under an agreement that requires the
transfer of title upon completion of required
payments and payment of an option price that
does not exceed the greater of one hundred
dollars ($100.00) or one percent (1%) of the
total required payments.
c. The providing of tangible personal
property along with an operator for a fixed or
indeterminate period of time if the operator
is necessary for the equipment to perform as
designed. For the purpose of this sub-
subdivision, an operator must do more than
maintain, inspect, or set up the tangible
personal property.
(17a) Load and leave. - Delivery to the
purchaser by use of a tangible storage media where
the tangible storage media is not physically
transferred to the purchaser.
...
(21a) Mobility enhancing equipment. -
Equipment that meets all of the conditions of this
subdivision. The term includes repair and
replacement parts for the equipment. The term does
not include durable medical equipment.
a. Primarily and customarily used to
provide or increase the ability of an
individual to move from one place to
another.
b. Appropriate for use either in a home
or motor vehicle.
c. Not generally used by a person with
normal mobility.
d. Not normally provided on a motor
vehicle by a motor vehicle manufacturer.
...
(25a) Over-the-counter drug. - A drug that
can be dispensed under federal law without a
prescription and is required by 21 C.F.R. § 210.66
to have a label containing a "Drug Facts" panel and
a statement of its active ingredients.
...
(28) Prepared food. - Food that meets at least one of
the following
conditions:conditions of this
subdivision. Prepared food does not include food
the retailer sliced, repackaged, or pasteurized but
did not otherwise process.
a. It is sold in a heated state or it is heated
by the retailer.
b. It consists of two or more foods mixed or
combined by the retailer for sale as a single
item. This sub-subdivision does not include
foods containing raw eggs, fish, meat, or
poultry that require cooking by the consumer
as recommended by the Food and Drug
Administration to prevent food borne
illnesses.
c. It is sold with eating utensils provided by
the retailer, such as plates, knives, forks,
spoons, glasses, cups, napkins, and straws.
The term does not include food the retailer
sliced, repackaged, or pasteurized but did not
otherwise process.
(29) Prescription drug. - A drug that under
federal law is required, prior to being dispensed
or delivered, to be labeled with the following
statement: "Caution: Federal law prohibits
dispensing without
prescription".Prescription. - An order,
formula, or recipe issued orally, in writing,
electronically, or by another means of transmission
by a physician, dentist, veterinarian, or another
person licensed to prescribe drugs.
(29a) Prewritten computer software. -
Computer software, including prewritten upgrades,
that is not designed and developed by the author or
another creator to the specifications of a specific
purchaser. The term includes software designed and
developed by the author or another creator to the
specifications of a specific purchaser when it is
sold to a person other than the specific
purchaser.
...
(30a) Prosthetic device. - A replacement,
corrective, or supporting device worn on or in the
body that meets one of the conditions of this
subdivision. The term includes repair and
replacement parts for the device.
a. Artificially replaces a missing
portion of the body.
b. Prevents or corrects a physical
deformity or malfunction.
c. Supports a weak or deformed portion of
the body.
...
(46) Tangible personal property. - Personal property
that may be seen, weighed, measured, felt, or
touched or is in any other manner perceptible to
the senses. The term does not include
stocks, bonds, notes, insurance, or other
obligations or securities, nor does it include
water delivered by or through main lines or pipes
either for commercial or domestic use or
consumption. The term includes computer software
delivered on a storage medium, such as a cd rom, a
disk, or a tape.The term includes
electricity, water, gas, steam, and prewritten
computer software."
SECTION 45.3. G.S. 105-164.4B reads as
rewritten:
"§ 105-164.4B. Sales are sourced based on
destination.Sourcing principles.
(a)General Principles. - The following principles
apply in determining where to source the sale of a product.
These principles apply regardless of the nature of the product.
(1) Over-the-counter. - When a purchaser receives a
product at a business location of the seller, the
sale is sourced to that business location.
(2) Delivery to specified address. - When a purchaser
receives a product at a location specified by the
purchaser and the location is not a business
location of the seller, the sale is sourced to the
location where the purchaser receives the product.
(3) Delivery address unknown. - When a seller of a
product does not know the address where a product
is received, the sale is sourced to the first
address or location listed in this subdivision that
is known to the seller:
a. The business or home address of the purchaser.
b. The billing address of the purchaser or, if
the product is a prepaid telephone calling
service that authorizes the purchase of mobile
telecommunications service, the location
associated with the mobile telephone number.
c. The billing address of the purchaser.
(b) Periodic Rental Payments. - When a lease or rental
agreement requires recurring periodic payments, the payments are
sourced as follows:
(1) For leased or rented property, the
first payment is sourced in accordance with the
principles set out in subsection (a) of this
section and each subsequent payment is sourced to
the primary location of the leased or rented
property for the period covered by the payment.
This subdivision applies to all property except a
motor vehicle, an aircraft, and transportation
equipment.
(2) For leased or rented property that is
a motor vehicle or an aircraft but is not
transportation equipment, all payments are sourced
to the primary location of the leased or rented
property for the period covered by the payment.
(3) For leased or rented property that is
transportation equipment, all payments are sourced
in accordance with the principles set out in
subsection (a) of this section.
(c) Transportation Equipment Defined. - As used in
the section, the term "transportation equipment" means any of
the following used to carry persons or property in interstate
commerce: a locomotive, a railway car, a commercial motor
vehicle as defined in G.S. 20-4.01, or an aircraft. The term
includes a container designed for use on the equipment and a
component part of the equipment.
(d) Exceptions. - This section does not apply to
the following:
(1) telecommunications
Telecommunications services. -
Telecommunications services are sourced in
accordance with G.S. 105-164.4C.
(2) Direct mail. - Direct mail that meets
one of the conditions of this subdivision is
sourced to the location where the property is
delivered. In all other cases, direct mail is
sourced in accordance with the principles set out
in subsection (a) of this section.
a. Direct mail purchased pursuant to a
direct pay permit.
b. When the purchaser provides the seller
with information to show the jurisdictions to
which the direct mail is to be delivered.
"
SECTION 45.4. G.S. 105-164.6A(b) reads as
rewritten:
"(b)Mandatory Provisions. - The agreements must contain the
following provisions:
(1) The seller is not liable for use tax not paid to it
by a customer.
(2) A customer's payment of a use tax to the seller
relieves the customer of liability for the use tax.
(3) The seller must remit all use taxes it collects
from customers on or before the due date specified
in the agreement, which may not be later than 31
days after the end of a quarter or other collection
period. The collection period cannot be more
often than annually if the seller's State and local
tax collections are less than one thousand dollars
($1,000) in a calendar year.
(4) A seller who fails to remit use taxes collected on
behalf of its customers by the due date specified
in the agreement is subject to the interest and
penalties provided in Article 9 of this Chapter
with respect to the taxes to the same extent as if
the seller were a retailer and were required to
collect use taxes under this Article."
SECTION 45.5. G.S. 105-164.13 reads as
rewritten:
"§ 105-164.13. Retail sales and use tax.
The sale at retail, the use, storage or consumption in
this State of the following tangible personal property is
specifically exempted from the tax imposed by this Article:
...
(12) Sales of any of the following items:
a. Therapeutic,
prosthetic, or artificial devices, such as
pulmonary respirators or medical beds, that
are designed for individual personal use to
correct or alleviate physical illness,
disease, or incapacity and that are sold on
the written prescription of a physician,
dentist, or other professional person licensed
to prescribe.
b. Crutches, artificial
limbs, artificial eyes, hearing aids, false
teeth, eyeglasses ground on prescription of a
physician or an optometrist.
c. Orthopedic appliances
designed to be worn by the purchaser or
user.
d. Durable medical
equipment and related medical supplies that
are covered under the Medicare or Medicaid
program and are sold on either a certificate
of medical necessity or a written prescription
of a physician, dentist, or other professional
person licensed to prescribe. This exemption
applies whether or not the item is purchased
by a Medicare or Medicaid
beneficiary.
a. Prosthetic devices.
b. Mobility enhancing equipment sold on a
prescription.
c. Durable medical equipment sold on
prescription.
d. Durable medical supplies sold on
prescription.
(13) All of the following drugs, including the
constituent elements and ingredients used to
produce the drugs, the their
packaging materials,
materials and any instructions or
information about the product
drugs included in the package with
the drugs:them:
a. Prescription drugs.Drugs
required by federal law to be dispensed only
on prescription.
b. Nonprescription drugs sold on
prescription of physicians, dentists, or
veterinarians.Over-the-counter
drugs sold on prescription.
c. Insulin.
...
(43) Custom computer software. - "Custom
computer software" is software written in
accordance with the specifications of a specific
customer. The term includes a user manual or other
documentation that accompanies the sale of the
software. The term does not include prewritten
software that can be installed and executed with no
changes to the software's source code other than
changes made to configure hardware or
software. Custom computer software and
the portion of prewritten computer software that is
modified or enhanced if the modification or
enhancement is designed and developed to the
specifications of a specific purchaser and the
charges for the modification or enhancement are
separately stated.
(43a) Computer software delivered
electronically or delivered by load and leave.
...
(51) Water delivered by or through main
lines or pipes for either commercial or domestic
use or consumption."
SECTION 45.5A. G.S. 105-164.13(50) reads as
rewritten:
"(50) Fifty percent (50%) of the sales price of
tangible personal property sold through a
coin-operated vending machine, other than
closed-container soft drinks and
tobacco."
SECTION 45.6. G.S. 105-164.13B reads as
rewritten:
"§ 105-164.13B. Food exempt from tax.
Food is exempt from the taxes imposed by this
Article, except as follows:
(1) The following items are
subject to tax:
a. Alcoholic beverages, as
defined in 105-113.68.
b. Dietary
supplements.
c. Food sold through a
vending machine.
(2) The following items are
subject to tax, unless the items are purchased for
home consumption and would be exempt if purchased
under the Federal Food Stamp Program, 7 U.S.C. §
51:
a. Candy.
b. Prepared food.
c. Soft drinks.
(a) State Exemption. - Food is exempt from the
taxes imposed by this Article unless the food is included in one
of the subdivisions in this subsection. The following food items
are subject to tax:
(1) Alcoholic beverages, as defined in
G.S. 105-113.68.
(2) Dietary supplements.
(3) Food sold through a vending
machine.
(4) Prepared food.
(5) Soft drinks.
(6) Candy, unless the item is purchased
for home consumption and would be exempt if
purchased under the Federal Food Stamp Program, 7
U.S.C. § 51.
(b) Reserved."
SECTION 45.6A. G.S. 105-164.13B, as amended by
this act, is amended by adding a new subsection to read:
"(b) Administration of Local Food Tax. - The
Secretary must administer local sales and use taxes imposed on
food as if they were imposed under this Article. This applies to
local taxes on food imposed under Subchapter VIII of this
Chapter and under Chapter 1096 of the 1967 Session Laws."
SECTION 45.6B. G.S. 105-164.13B(a)(6), as enacted
by this act, is repealed.
SECTION 45.7. G.S. 105-164.13C reads as
rewritten:
"§ 105-164.13C. Sales and use tax holiday.
(a)The taxes imposed by this Article do not apply to the
following items of tangible personal property if sold between
12:01A.M. on the first Friday of August and 11:59 P.M. the
following Sunday:
(1) Clothing with a sales price of one hundred dollars
($100.00) or less per item.
(2) School supplies, such as pens, pencils,
paper, binders, notebooks, textbooks, reference
books, book bags, lunchboxes, and calculators,
supplies with a sales price of one
hundred dollars ($100.00) or less per item.
(3) Computers, printers and printer supplies,
and educational computer software,
Computers with a sales price of
three thousand five hundred dollars ($3,500) or
less per item.
(4) Sport or recreational equipment with a sales price
of fifty dollars ($50.00) or less per item.
(b) The exemption allowed by this section does not apply to
the following:
(1) Sales of clothing accessories or equipment.
(2) Sales of protective equipment.
(3) Sales of furniture.
(4) Sales involving a
layaway contract or a similar deferred payment and
delivery plan.
(5) Sales of an item for use in a trade or business.
(6) Rentals.
(c) For the purpose of this
section, "computer" means a central processing unit for personal
use and any peripherals sold with it and any computer software
installed at the time of purchase."
SECTION 45.8. G.S. 105-164.16(b1) reads as
rewritten:
"(b1) Monthly. - A taxpayer who is consistently liable for
more than one hundred dollars ($100.00) but less than ten
thousand dollars ($10,000) a month in State and local sales and
use taxes must file a return and pay the taxes due on a monthly
basis. A monthly return is due by the 15th
20th day of the month following the calendar month
covered by the return."
SECTION 45.9. G.S. 105-164.27A(a) reads as
rewritten:
"(a)Tangible Personal Property. - A direct pay permit for
tangible personal property authorizes its holder to purchase any
tangible personal property without paying tax to the seller and
authorizes the seller to not collect any tax on a sale to the
permit holder. A person who purchases tangible personal property
under a direct pay permit issued under this subsection is liable
for use tax due on the purchase. The tax is payable when the
property is placed in use. A direct pay permit issued under this
subsection does not apply to taxes imposed under G.S.
105-164.4(a)(1f) or G.S. 105-164.4(a)(4a).
A person who purchases direct mail may apply to the
Secretary for a direct pay permit for the purchase of direct
mail. The direct pay permit issued for direct mail does not
apply to any purchase other than the purchase of direct
mail.
A person who purchases tangible personal property whose tax
status cannot be determined at the time of the purchase because
of one of the reasons listed below may apply to the Secretary
for a direct pay permit for tangible personal property:
(1) The place of business where the property will be
used is not known at the time of the purchase and a
different tax consequence applies depending on
where the property is used.
(2) The manner in which the property will be used is
not known at the time of the purchase and one or
more of the potential uses is taxable but others
are not taxable."
SECTION 45.10. G.S. 105-466(c) reads as
rewritten:
"(c)Collection of the tax, and liability therefor, must begin
and continue only on and after the first day of the month of
either January or July, as set by the board of county
commissioners in the resolution levying the tax. In no event may
the tax be imposed, or the tax rate changed, earlier than the
first day of the second succeeding calendar month after the date
of the adoption of the resolution. The county must give the
Secretary at least 90 days advance notice of a new tax levy or
tax rate change. The applicability of a new tax or a tax rate
change to purchases from printed catalogs becomes effective on
the first day of a calendar quarter after a minimum of 120 days
from the date the Secretary notifies the seller that receives
orders by means of a catalog or similar publication of the new
tax or tax rate change."
SECTION 45.11.(a) G.S. 105-469 reads as
rewritten:
"§ 105-469. Secretary to collect and administer local sales
and use tax.
(a)The Secretary shall collect and administer a tax
levied by a county pursuant to this Article. As directed by
G.S. 105-164.13B, taxes levied by a county on food are
administered as if they were levied by the State under Article 5
of this Chapter. The Secretary must distribute local taxes
levied on food to the taxing counties in accordance with G.S.
105-472 by including the taxes on food with local tax revenue
that is not attributable to a particular county.
(b) The Secretary shall require retailers who collect use tax
on sales to North Carolina residents to ascertain the county of
residence of each buyer and provide that information to the
Secretary along with any other information necessary for the
Secretary to allocate the use tax proceeds to the correct taxing
county."
SECTION 45.11.(b) Section 6 of Chapter 1096 of
the 1967 Session Law is amended by adding the following sentence
immediately after the first sentence in that section:
"As directed by G.S. 105-164.13B, taxes levied by Mecklenburg
County on food are administered as if they were levied by the
State under Article 5 of Chapter 105 of the North Carolina
General Statutes."
SECTION 45.11.(c) The first paragraph of Section
9 of Chapter 1096 of the 1967 Session Laws, as amended, is
amended by adding the following sentence immediately after the
first sentence in that paragraph:
"The Secretary of Revenue shall distribute the taxes levied
by Mecklenburg County on food to Mecklenburg County and
municipalities within Mecklenburg County in accordance with G.S.
105-472 by including the taxes on food with local tax revenue
that is not attributable to a particular county."
SECTION 45.12. Sections 45.2 through 45.5,
Section 45.6, and Sections 45.8 through 45.10 of this act become
effective July 15, 2003. Sections 45.6A, 45.7, 45.8, and 45.11
become effective October 1, 2003. Section 45.5A and Section
45.6B become effective January 1, 2004. The remainder of this
part is effective when it becomes law.
PART XLV-A. ELIMINATE TOBACCO AND ALCOHOL DISCOUNTS
ELIMINATE TOBACCO DISCOUNTS
SECTION 45A.1.(a) G.S. 105-113.21 reads as
rewritten:
"§ 105-113.21. Discount;
refund.Refund.
(a) Discount. - A distributor
who files a timely report under G.S. 105-113.18 and who sends a
timely payment may deduct from the amount due with the report a
discount of four percent (4%). This discount covers expenses
incurred in preparing the records and reports required by this
Part, and the expense of furnishing a bond.
(b) Refund. - A distributor in possession of packages of
stale or otherwise unsalable cigarettes upon which the tax has
been paid may return the cigarettes to the manufacturer and
apply to the Secretary for refund of the tax. The application
shall be in the form prescribed by the Secretary and shall be
accompanied by an affidavit from the manufacturer stating the
number of cigarettes returned to the manufacturer by the
applicant. The Secretary shall refund the tax paid on the
unsalable cigarettes, less the discount allowed, to the
applicant.cigarettes."
SECTION 45A.1.(b) G.S. 105-113.35(c) reads as
rewritten:
"(c)Secondary Liability. - A retail dealer who acquires
non-tax-paid tobacco products subject to the tax imposed by this
section from a wholesale dealer is liable for any tax due on the
tobacco products. A retail dealer who is liable for tax
under this subsection may not deduct a discount from the amount
of tax due when reporting the tax."
SECTION 45A.1.(c) G.S. 105-113.39 is repealed.
SECTION 45A.1.(d) This section is effective for
reporting periods beginning on or after August 1, 2003.
ELIMINATE ALCOHOL DISCOUNTS
SECTION 45A.2.(a) G.S. 105-113.85 is repealed.
SECTION 45A.2.(b) This section is effective for
reporting periods beginning on or after August 1, 2003.
PART XLVI. REPAIR AND RENOVATIONS
REPAIR AND RENOVATIONS
SECTION 46.1. Repair and Renovation. - This section
authorizes the issuance or incurrence of special indebtedness in
a maximum aggregate principal amount of three hundred million
dollars ($300,000,000) to be used only in accordance with this
section for the repair and renovation of State facilities and
related infrastructure that are supported from the General Fund.
Proceeds of the Repair and Renovation special
indebtedness shall be used only for the purposes and in
accordance with the procedures provided in G.S. 143-15.3A, the
Repairs and Renovations Reserve Account.
Except in the case of an emergency as provided in G.S.
143-15.3A, the Director of the Budget shall use the Repair and
Renovations funds only for repairs and renovations that have
been approved by an act of the General Assembly or, if the
General Assembly is not in session, for repairs and renovations
about which the Director of the Budget has first consulted with
the Joint Legislative Commission on Governmental Operations
under G.S. 143-15.3A(c). The Director of the Budget shall direct
the State Treasurer to carry out the financing for repair and
renovation projects selected pursuant to this section. Special
indebtedness authorized by this section shall be issued or
incurred only in accordance with Article 9 of Chapter 142 of the
General Statutes, as enacted by this part.
SECTION 46.2. Article 9 of Chapter 142 of the
General Statutes, as enacted by House Bill 643, 2003 General
Assembly, is rewritten to read:
"Article 9.
"State Capital Facilities Finance Act.
"§ 142-80. Short title.
This Article may be cited as the State Capital
Facilities Finance Act.
"§ 142-81. Findings and purpose.
The General Assembly finds as follows:
(1) There is a continuing need for capital
facilities for the State, many of which will
continue to be provided on a "pay-as-you-go" basis
by direct appropriations.
(2) The State will also continue to
provide capital facilities through the issuance of
general obligation bonds.
(3) There is a need, however, for the use
of alternative financing methods, such as
authorized in this Article, to facilitate the
providing of capital facilities when circumstances
and conditions warrant the providing of capital
facilities through financing methods in addition to
direct appropriations and the issuance of general
obligation bonds.
(4) The use of these alternative financing
methods as authorized in this Article will provide
financing flexibility to the State and permit the
State to take advantage of changing financial and
economic environments.
"§ 142-82. Definitions.
The following definitions apply in this Article:
(1) Bonded indebtedness. - Limited
obligation bonds and bond anticipation notes,
including refunding bonds and notes, authorized to
be issued under this Article.
(2) Bonds or notes. - Limited obligation
bonds and notes authorized to be issued under this
Article.
(3) Capital facility. - Any one or more of
the following:
a. Any one or more buildings, utilities,
structures, or other facilities or property
developments, including streets and
landscaping, and the acquisition of equipment,
machinery, and furnishings in connection with
these items.
b. Additions, extensions, enlargements,
renovations, and improvements to existing
buildings, utilities, structures, or other
facilities or property developments, including
streets and landscaping.
c. Land or an interest in land.
d. Other infrastructure.
e. Furniture, fixtures, equipment,
vehicles, machinery, and similar items.
(4) Certificates of participation. -
Certificates or other instruments delivered by a
special corporation evidencing the assignment of
proportionate undivided interests in rights to
receive payments pursuant to a financing
contract.
(5) Certificates of participation
indebtedness. - Financing contract indebtedness
incurred by the State under a plan of finance in
which a special corporation obtains funds to pay
the cost of a capital facility to be financed
through the delivery by the special corporation of
certificates of participation.
(6) Cost. - Any of the following in
financing the cost of capital facilities as
authorized by this Article:
a. The cost of constructing,
reconstructing, renovating, repairing,
enlarging, acquiring, and improving capital
facilities, including the acquisition of land,
rights-of-way, easements, franchises,
equipment, machinery, furnishings, and other
interests in real or personal property
acquired or used in connection with a capital
facility.
b. The cost of engineering,
architectural, and other consulting
services.
c. The cost of providing personnel to
ensure effective management of capital
facilities.
d. Finance charges, reserves for debt
service, and other types of reserves required
pursuant to the terms of any special
indebtedness or related documents, interest
before and during construction or acquisition
of a capital facility and, if considered
advisable by the State Treasurer, for a period
not exceeding two years after the estimated
date of completion of construction or
acquisition.
e. Administrative expenses and
charges.
f. The cost of bond insurance, investment
contracts, credit enhancement facilities and
liquidity facilities, interest rate swap
agreements or other derivative products,
financial and legal consultants, and related
costs of the incurrence or issuance of special
indebtedness.
g. The cost of reimbursing the State, a
State agency, or a special corporation for any
payments made for any cost described in this
subdivision.
h. Any other costs and expenses necessary
or incidental to the purposes of this
Article.
(7) Credit facility. - An agreement
that:
a. Is entered into by the State with a
bank, savings and loan association, or other
banking institution, an insurance company,
reinsurance company, surety company, or other
insurance institution, a corporation,
investment banking firm, or other investment
institution, or any financial institution or
other similar provider of a credit facility,
which provider may be located within or
without the United States of America; and
b. Provides for prompt payment of all or
any part of the principal or purchase price
(whether at maturity, presentment or tender
for purchase, redemption, or acceleration),
redemption premium, if any, and interest with
respect to any special indebtedness payable on
demand or tender by the owner in consideration
of the State's agreeing to repay the provider
of the credit facility in accordance with the
terms and provisions of the agreement.
(8) Department of Administration. - The
North Carolina Department of Administration,
created by Article 36 of Chapter 143 of the General
Statutes or, if the Department is abolished or
otherwise divested of its functions under this
Article, the public body succeeding it in its
principal functions or upon which are conferred by
law the rights, powers, and duties given by this
Article to the Department.
(9) Financing contract. - A contract
entered into pursuant to this Article to finance
capital facilities and constituting a
lease-purchase contract, installment-purchase
contract, or other similar type installment
financing contract. The term does not include,
however, a contract that meets any one of the
following conditions:
a. It constitutes an operating lease
under generally accepted accounting
principles.
b. It provides for the payment under the
contract over its full term, including periods
that may be added to the original term through
the exercise of options to renew or extend, of
an aggregate principal amount of not in excess
of five thousand dollars ($5,000) or any
greater amount that may be established by the
Council of State if the Council of State
determines (i) the aggregate amount to be paid
under these contracts will not have a
significant impact on the State budgetary
process or the economy of the State and (ii)
the change will lessen the administrative
burden on the State.
c. It is executed and provides for the
making of all payments under the contract,
including payment to be made during any period
that may be added to the original term through
the exercise of options to renew or extend, in
the same fiscal year.
(10) Financing contract indebtedness. -
Indebtedness incurred pursuant to a financing
contract, including certificates of participation
indebtedness.
(11) Fiscal period. - A fiscal biennium or
a fiscal year of the fiscal biennium.
(12) Fiscal year. - The fiscal year of the
State beginning on July 1 of one calendar year and
ending on June 30 of the next calendar year.
(13) Limited obligation bond. - A limited
obligation bond issued pursuant to G.S. 142-88 and
payable and secured as provided in G.S. 142-89.
(14) Par formula. - A provision or formula
adopted by the State to provide for the adjustment,
from time to time, of the interest rate or rates
borne or provided for by any special indebtedness,
including any of the following:
a. A provision providing for an
adjustment so that the purchase price of
special indebtedness in the open market would
be as close to par as possible.
b. A provision providing for an
adjustment based upon a percentage or
percentages of a prime rate or base rate,
which percentages may vary or be applied for
different periods of time.
c. Any provision that the State Treasurer
determines is consistent with this Article and
will not materially and adversely affect the
financial position of the State and the
marketing of special indebtedness at a
reasonable interest cost to the State.
(15) Person. - An individual, a firm, a
partnership, an association, a corporation, a
limited liability company, or any other
organization or group acting as a unit.
(16) Special corporation. - Either of the
following:
a. A nonprofit corporation created under
Chapter 55A of the General Statutes for the
purpose of facilitating the incurrence of
certificates of participation indebtedness by
the State under this Article.
b. A private corporation or other entity
issuing certificates of participation pursuant
to this Article.
(17) Special indebtedness. - Financing
contract indebtedness and bonded indebtedness
issued or incurred pursuant to this Article.
(18) State. - The State of North Carolina,
including any State agency.
(19) State agency. - Any agency,
institution, board, commission, bureau, council,
department, division, officer, or employee of the
State. The term does not include counties,
municipal corporations, political subdivisions,
local boards of education, or other local public
bodies.
(20) State Treasurer. - The incumbent
Treasurer, from time to time, of the State.
"§ 142-83. Authorization of special indebtedness; General
Assembly approval.
The State may incur or issue special indebtedness
subject to the terms and conditions provided in this Article for
the purpose of financing the cost of capital facilities that
meet one of the following conditions:
(1) The General Assembly has enacted
legislation describing the capital facility and
authorizing its financing by the incurrence or
issuance of special indebtedness up to a specific
maximum amount.
(2) The General Assembly has enacted
legislation authorizing the incurrence or issuance
of special indebtedness up to a specific maximum
amount for a specific category of capital
facilities and the capital facility meets all of
the conditions set in that legislation.
"§ 142-84. Procedure for incurrence or issuance of
special indebtedness.
(a) Notice and Certificate. - Whenever the
State or a State agency determines that special indebtedness is
appropriate to finance capital facilities, it shall notify the
Department of Administration. If the Department of
Administration concurs, it shall provide written notice to the
State Treasurer advising the State Treasurer of this
determination.
After the filing of the notice and after any preliminary
conference, the State Treasurer shall consult with the Office of
State Budget and Management as to the revenues expected by that
Office to be available to pay all sums to come due on the
special indebtedness during its term. If, after consulting with
the Office of State Budget and Management, the State Treasurer
determines by written certificate that it may be desirable to
use special indebtedness to finance the capital facilities, the
Department of Administration shall request the Council of State
to give its preliminary approval of the use of special
indebtedness to finance the capital facilities. The Department
of Administration must promptly file copies of the notice and
certificate required by this subsection with the Governor and
the Council of State.
(b) Preliminary Approval. - The Council of State,
upon receipt of the notice and certificate required by
subsection (a) of this section, shall adopt a resolution
granting or denying preliminary approval of the financing. A
resolution granting preliminary approval may include any other
terms, conditions, and restrictions the Council of State
considers appropriate and not inconsistent with the provisions
of this Article.
(c) Final Approval. - Before any special
indebtedness may be incurred or issued pursuant to this Article,
the Council of State must authorize the indebtedness by
resolution, either as part of or separate from the resolution
required by subsection (b) of this section. The resolution must
do all of the following:
(1) Authorize the providing of a
particular capital facility or, in general terms,
the types or classifications of capital facilities
to be provided.
(2) Set the aggregate principal amount or
maximum principal amount of the special
indebtedness authorized.
(3) Set the maturity or maximum maturity
of the special indebtedness authorized.
(4) Set the rate, rates, or maximum rate
of interest, which may be fixed or vary over a
period of time, of the special indebtedness
authorized.
(5) Include any other conditions or
matters not inconsistent with the provisions of
this Article in the discretion of the Council of
State, which may include the adoption or approvals
as may be authorized in G.S. 142-88 and G.S.
142-89.
(d) Financing Terms. - No special indebtedness
shall be incurred or issued without the prior written approval
of the State Treasurer as provided in this subsection, which is
in addition to the certificate given by the State Treasurer
pursuant to subsection (a) of this section. In determining
whether to approve the proposed financing, the State Treasurer
may consider any factors the State Treasurer considers relevant
in order to find and determine all of the following:
(1) The amounts to become due under the
special indebtedness, including the interest
component or rate, are adequate and not excessive
for the purpose proposed.
(2) The increase, if any, in State
revenues, including taxes, necessary to pay the
sums to become due under the special indebtedness
is not excessive.
(3) The special indebtedness can be
incurred or issued on terms desirable to the
State.
(e) Designation of Facilities. - If the Council of
State has authorized in general terms the types or
classifications of capital facilities to be financed, then the
particular capital facilities and the principal amount of
special indebtedness to be incurred or issued for each
particular capital facility shall be determined by the
Department of Administration after considering any factors it
considers relevant in order to determine that the particular
capital facility to be provided is desirable for the efficient
operation of the State and its agencies and is in the best
interests of the State.
(f) Type of Debt and Security. - In the absence of
a determination by the Council of State, the State Treasurer,
after consultation with the Department of Administration, shall
determine the specific security offered and whether the special
indebtedness to be issued or incurred shall be financing
contract indebtedness, certificates of participation
indebtedness, bonded indebtedness, or some combination of
these.
(g) Administration. - The State Treasurer, after
consultation with the Department of Administration, shall
develop appropriate documents for use under this Article. The
State Treasurer shall employ and designate the financial
consultants, fiduciaries and other agents, underwriters, and
bond attorneys to be associated with the incurrence or issuance
of special indebtedness pursuant to this Article.
(h) Oversight by Joint Legislative Commission. -
After all the requirements for approval and oversight provided
in this section have been met, and at least five days before the
issuance or incurrence of the special indebtedness, the State
Treasurer must report to the Joint Legislative Commission on
Governmental Operations. This report must include the details of
the proposed special indebtedness, including the capital
facilities to be financed by the indebtedness, the amount of the
proposed indebtedness, the type of indebtedness to be issued or
incurred, and any other information required by the
Commission.
"§ 142-85. Security; other requirements.
(a) Security. - In order to secure (i) lease
or installment payments to be made to the lessor, seller, or
other person advancing moneys or providing financing under a
financing contract, (ii) payment of the principal of and
interest on bonded indebtedness, or (iii) payment obligations of
the State to the provider of bond insurance, a credit facility,
a liquidity facility, or a derivative agreement, special
indebtedness may create any combination of the following:
(1) A lien on or security interest in one
or more, all, or any part of the capital facilities
to be financed by the special indebtedness.
(2) If the special indebtedness is to
finance construction of improvements on real
property, a lien on or security interest in all or
any part of the land on which the improvements are
to be located.
(3) If the special indebtedness is to
finance renovations or improvements to existing
facilities or the installation of fixtures in
existing facilities, a lien on or security interest
in one or more, all, or any part of the
facilities.
(b) Value of Security; Multiple Liens. - The
estimated value of the property subject to the lien or security
interest need not bear any particular relationship to the
principal amount of the special indebtedness or other obligation
it secures. This Article does not limit the right of the State
to grant multiple liens or security interests in a capital
facility or other property to the extent not otherwise limited
by the terms of any special indebtedness.
(c) Governor's Budget. - Documentation relating to
any special indebtedness may include provisions requesting the
Governor to submit in the Governor's budget proposal or any
amendments or supplements to the budget proposed appropriations
necessary to make the payments required by the special
indebtedness.
(d) Source of Repayment. - The payment of amounts
payable by the State under special indebtedness or any related
documents during any fiscal period shall be limited to funds
appropriated for that purpose by the General Assembly in its
discretion.
(e) No Deficiency Judgment or Pledge. - No
deficiency judgment may be rendered against the State in any
action for breach of any obligation under special indebtedness
or any related documents. The taxing power of the State is not
and may not be pledged directly or indirectly to secure any
moneys due under special indebtedness or any related documents.
In the event that the General Assembly does not appropriate sums
sufficient to make payments required under any special
indebtedness or any related documents, the net proceeds received
from the sale or other disposition of the property subject to
the lien or security interest shall be applied to satisfy these
payment obligations in accordance with the deed of trust,
security agreement, or other documentation relating to the lien
or security interest. These net proceeds are appropriated for
the purpose of making these payments. Any net proceeds in excess
of the amount required to satisfy the obligations of the State
under any special indebtedness or any related documents shall be
paid to the State Treasurer for deposit to the General Fund.
(f) Nonsubstitution Clause. - A financing
contract, issue of bonded indebtedness, or other related
document shall not contain a nonsubstitution clause that
restricts the right of the State to (i) continue to provide a
service or conduct an activity or (ii) replace or provide a
substitute for any capital facility.
(g) Protection of Lender. - Special indebtedness
may contain any provisions for protecting and enforcing the
rights and remedies of the person advancing moneys or providing
financing under a financing contract, the owners of bonded
indebtedness, or others to whom the State is obligated under
special indebtedness or any related documents as may be
reasonable and proper and not in violation of law. These
provisions may include covenants setting forth the duties of the
State in respect of any of the following:
(1) The purposes to which the proceeds of
special indebtedness may be applied.
(2) The disposition and application of the
revenues of the State, including taxes.
(3) Insuring, maintaining, and other
duties with respect to the capital facilities
financed.
(4) The disposition of any charges and
collection of any revenues and administrative
charges.
(5) The terms and conditions of the
issuance of additional special indebtedness.
(6) The custody, safeguarding, investment,
and application of all moneys.
(h) State Property Law Exception. - Chapter 146 of
the General Statutes does not apply to any transfer of the
State's interest in property authorized by this Article, whether
to a deed of trust trustee or other secured party as security
for special indebtedness, or to a purchaser of property in
connection with a foreclosure or similar conveyance of property
to realize upon the security for special indebtedness following
the State's default on its obligations under the special
indebtedness.
"§ 142-86. Financing contract indebtedness.
(a) Documentation. - Financing contract
indebtedness shall not be incurred until all documentation
providing for its incurrence has been approved by the State
Treasurer after the State Treasurer has consulted with the
Department of Administration.
(b) Interest Component. - A financing contract may
provide for payments under the contract to represent principal
and interest components of the cost of the capital facility to
be financed, as determined by the State Treasurer.
(c) Bidding. - Financing contracts may be entered
into pursuant to any applicable public or competitive bidding
process or any private or negotiated process, to the extent
required by applicable law and, if not so required, as may be
determined by the Department of Administration after consulting
with the State Treasurer.
(d) Party. - All financing contracts shall be
executed on behalf of the State by the State Treasurer or, upon
delegation by the State Treasurer after the State Treasurer's
having approved the financing contract, by the Department of
Administration.
(e) Credit Facility. - If the State Treasurer
determines that it is in the best interest of the State, the
State Treasurer may arrange for the delivery of a credit
facility to secure payment under any financing contract. The
State Treasurer may also provide that payments by the State
representing the interest component of the payments to be made
under a financing contract may be calculated based upon a fixed
or a variable rate of interest.
(f) Terms and Conditions. - All other conditions
set forth elsewhere in this Article with respect to financing
contract indebtedness shall also be satisfied prior to incurring
any financing contract indebtedness. To the extent applicable as
conclusively determined by the State Treasurer, the provisions
of G.S. 142-89, 142-90, and 142-91 apply to financing contract
indebtedness.
"§ 142-87. Additional requirements for certificates of
participation indebtedness.
(a) Documentation. - A financing contract
shall not be used in connection with the delivery of
certificates of participation by a special corporation until all
documentation providing for its use has been approved by the
State Treasurer after the State Treasurer has consulted with the
Department of Administration. All documentation providing for
the delivery and sale of certificates of participation must be
approved by the State Treasurer.
(b) Procedure. - The special corporation, if used,
shall request the approval of the State Treasurer in writing and
shall furnish any information and documentation relating to the
delivery and sale of the certificates of participation requested
by the State Treasurer. In determining whether to approve the
financing in the documentation, the State Treasurer shall
consider the factors set forth in G.S. 142-84(d), as well as the
effect of the proposed financing upon any scheduled or proposed
sale of debt obligations by the State or a unit of local
government in the State.
(c) Terms; Interest. - Certificates of
participation may be sold by the State Treasurer in the manner,
either at public or private sale, and for any price or prices
that the State Treasurer determines to be in the best interest
of the State and to effect the purposes of this Article, except
that the terms of the sale must also be approved by the special
corporation. Interest payable with respect to certificates of
participation shall accrue at the rate or rates determined by
the State Treasurer with the approval of the special
corporation.
(d) Trust Agreement. - Certificates of
participation may be delivered pursuant to a trust agreement or
similar instrument with a corporate trustee approved by the
State Treasurer, and the provisions of G.S. 142-89(h) apply to
the trust agreement or similar instrument to the extent
applicable.
(e) Other Conditions. - All other conditions set
forth elsewhere in this Article with respect to certificates of
participation indebtedness, including the conditions set forth
in G.S. 142-86, must be satisfied before any certificates of
participation indebtedness is incurred.
"§ 142-88. Bonded indebtedness.
The State Treasurer is authorized, by and with the
consent of the Council of State as provided in this Article, to
issue and sell at one time or from time to time bonds of the
State to be designated "State of North Carolina Limited
Obligation Bonds, Series____" or notes of the State as provided
in this Article, for the purpose of providing funds, with any
other available funds, for the uses authorized in this
Article.
"§ 142-89. Issuance of limited obligation bonds and
notes.
(a) Terms and Conditions. - Bonds or notes
may bear any dates; may be serial or term bonds or notes, or any
combination of these; may mature in any amounts and at any
times, not exceeding 40 years from their dates; may be payable
at any places, either within or without the United States, in
any coin or currency of the United States that at the time of
payment is legal tender for payment of public and private debts;
may bear interest at any rates, which may vary from time to
time; and may be made redeemable before maturity, at the option
of the State or otherwise as may be provided by the State, at
any prices, including a price greater than the face amount of
the bonds or notes, and under any terms and conditions, all as
may be determined by the State Treasurer, by and with the
consent of the Council of State.
(b) Signatures; Form and Denomination;
Registration. - Bonds or notes may be issued in certificated or
uncertificated form. If issued in certificated form, bonds or
notes shall be signed on behalf of the State by the Governor or
bear the Governor's facsimile signature, shall be signed by the
State Treasurer or bear the State Treasurer's facsimile
signature, and shall bear the great seal of the State or a
facsimile of the seal impressed or imprinted on them. If bonds
or notes bear the facsimile signatures of the Governor and the
State Treasurer, the bonds or notes shall also bear a manual
signature which may be that of a bond registrar, trustee, paying
agent, or designated assistant of the State Treasurer. If any
officer whose signature or facsimile signature appears on bonds
or notes issued under this Article ceases to be that officer
before the delivery of the bonds or notes, the signature or
facsimile signature shall nevertheless have the same validity
for all purposes as if the officer had remained in office until
delivery of the bonds or notes. Bonds or notes issued under this
Article may bear the facsimile signatures of persons who, at the
actual time of the execution of the bonds or notes, were the
proper officers to sign any bond or note although at the date of
the bond or note those persons may not have been officers.
The form and denomination of bonds or notes, including the
provisions with respect to registration of the bonds or notes
and any system for their registration, shall be as prescribed by
the State Treasurer in conformity with this Article.
(c) Manner of Sale; Expenses. - Subject to the
approval by the Council of State as to the manner in which bonds
or notes will be offered for sale, whether at public or private
sale, whether within or without the United States, and whether
by publishing notices in certain newspapers and financial
journals, mailing notices, inviting bids by correspondence,
negotiating contracts of purchase, or otherwise, the State
Treasurer is authorized to sell bonds or notes at one time or
from time to time at any rates of interest, which may vary from
time to time, and at any prices, including a price less than the
face amount of the bonds or notes, as the State Treasurer may
determine. All expenses incurred in the preparation, sale, and
issuance of bonds or notes shall be paid by the State Treasurer
from the proceeds of bonds or notes or other available
moneys.
(d) Application of Proceeds. - The proceeds of any
bonds or notes shall be used solely for the purposes for which
the bonds or notes were issued and shall be disbursed in the
manner and under the restrictions, if any, that the Council of
State may provide in the resolution authorizing the issuance of,
or in any trust agreement securing, the bonds or notes.
Any additional moneys that may be received by means of a
grant or grants from the United States or any agency or
department thereof or from any other source to aid in financing
the cost of a capital facility may be disbursed, to the extent
permitted by the terms of the grant or grants, without regard to
any limitations imposed by this Article.
(e) Notes; Repayment. - By and with the consent of
the Council of State, the State Treasurer is authorized to
borrow money and to execute and issue notes of the State for the
same, but only in any of the following circumstances and under
the following conditions:
(1) For anticipating the sale of bonds,
the issuance of which the Council of State has
approved, if the State Treasurer considers it
advisable to postpone the issuance of the
bonds.
(2) For the payment of interest on or any
installment of principal of any bonds then
outstanding, if there are not sufficient funds in
the State treasury with which to pay the interest
or installment of principal as they respectively
become due.
(3) For the renewal of any loan evidenced
by notes authorized in this Article.
(4) For the purposes authorized in this
Article.
(5) For refunding bonds or notes or
financing contract indebtedness as authorized in
this Article.
Funds derived from the sale of limited obligation bonds or
notes may be used in the payment of any bond anticipation notes
issued under this Article. Funds provided by the General
Assembly for the payment of interest on or principal of bonds
shall be used in paying the interest on or principal of any
notes and any renewals thereof, the proceeds of which have been
used in paying interest on or principal of the bonds.
(f) Refunding Bonds and Notes. - By and with the
consent of the Council of State, the State Treasurer is
authorized to issue and sell refunding bonds and notes for the
purpose of refunding special indebtedness and to pay the cost of
issuance of the refunding bonds or notes. The refunding bonds
and notes may be combined with any other issues of State bonds
and notes issued pursuant to this Article. Refunding bonds or
notes may be issued at any time prior to the final maturity of
the debt or obligation to be refunded. The proceeds from the
sale of any refunding bonds or notes shall be applied to the
immediate payment and retirement of the obligations being
refunded or, if not required for the immediate payment of the
obligations being refunded, the proceeds shall be deposited in
trust to provide for the payment and retirement of the
obligations being refunded and to pay any expenses incurred in
connection with the refunding. Money in a trust fund may be
invested in (i) direct obligations of the United States
government, (ii) obligations the principal of and interest on
which are guaranteed by the United States government, (iii) to
the extent then permitted by law, obligations of any agency or
instrumentality of the United States government, or (iv)
certificates of deposit issued by a bank or trust company
located in the State if the certificates are secured by a pledge
of any of the obligations described in (i), (ii), or (iii) above
having an aggregate market value, exclusive of accrued interest,
equal at least to the principal amount of the certificates so
secured. This section does not limit the duration of any deposit
in trust for the retirement of obligations being refunded but
that have not matured and are not presently redeemable or, if
presently redeemable, have not been called for redemption.
(g) Security. - Payment of the principal of and
the interest on bonds and notes shall be secured as provided in
G.S. 142-85.
(h) Trust Agreement. - In the discretion of the
State Treasurer, any bonds and notes issued under this Article
may be secured by a trust agreement or similar instrument
between the State and a corporate trustee or by a resolution of
the Council of State providing for the appointment of a
corporate trustee. The corporate trustee may be, in either case,
any trust company or bank that has the powers of a trust company
within or without the State. The trust agreement or similar
instrument or resolution, hereinafter referred to as "the
trust", may provide for security and pledges and assignments
that are permitted under this Article and may provide for the
granting of a lien or security interest as authorized by G.S.
142-85. The trust may contain any provisions for protecting and
enforcing the rights and remedies of the owners of any bonds or
notes issued under the trust that are reasonable and not in
violation of law, including covenants setting forth the duties
of the State with respect to the purposes for which bond or note
proceeds may be applied, the disposition and application of the
revenues or assets of the State, the duties of the State with
respect to the capital facilities financed, the disposition of
any charges and collection of any revenues and administrative
charges, the terms and conditions of the issuance of additional
bonds and notes, and the custody, safeguarding, investment, and
application of all moneys. All bonds and notes issued under this
Article pursuant to the same trust shall be equally and ratably
secured as provided in the trust, without priority by reasons of
number, dates of bonds or notes, execution, or delivery, in
accordance with the provisions of this Article and of the trust.
The trust may, however, provide that bonds or notes issued
pursuant to the trust shall, to the extent and in the manner
prescribed in the trust, be subordinated and junior in standing,
with respect to the payment of principal and interest and to the
security of the payment, to any other bonds or notes issued
pursuant to the trust. It is lawful for any bank or trust
company that may act as depositary of the proceeds of bonds or
notes, revenues, or any other money under this Article to
furnish any indemnifying bonds or to pledge any securities that
may be required by the State Treasurer. The trust may set out
the rights and remedies of the owners of any bonds or notes and
of any trustee and may restrict the individual rights of action
by the owners. In addition to the foregoing, the trust may
contain any other provisions the State Treasurer considers
appropriate for the security of the owners of any bonds or
notes. Expenses incurred in carrying out the provisions of the
trust may be treated as a part of the cost of any capital
facility or as an administrative charge and may be paid from the
proceeds of the bonds or notes or from any other available
funds.
"§ 142-90. Variable rate demand bonds and notes and
financing contract indebtedness.
(a) In fixing the details of special
indebtedness, the State Treasurer may make the special
indebtedness subject to any of the following conditions:
(1) It is payable from time to time on
demand or tender for purchase by the owner thereof
if a credit facility supports the special
indebtedness, unless the State Treasurer
specifically determines that a credit facility is
not required upon a determination by the State
Treasurer that the absence of a credit facility
will not materially and adversely affect the
financial position of the State or the marketing of
the bonds or notes or financing contract
indebtedness at a reasonable interest cost to the
State.
(2) It is additionally supported by a
credit facility.
(3) It is subject to redemption or
mandatory tender for purchase prior to
maturity.
(4) It bears interest at a rate or rates
that may be fixed or may vary over any period of
time, as may be provided in the proceedings
providing for the issuance or incurrence of the
special indebtedness, including any variations that
may be permitted pursuant to a par formula.
(5) It is the subject of a remarketing
agreement under which an attempt is made to
remarket special indebtedness to new purchasers
before its presentment for payment to the provider
of the credit facility or to the State.
(b) If the aggregate principal amount payable by
the State under a credit facility is in excess of the aggregate
principal amount of special indebtedness secured by the credit
facility, whether as a result of the inclusion in the credit
facility of a provision for the payment of interest for a
limited period of time or the payment of a redemption premium or
for any other reason, then the amount of authorized but unissued
bonds or notes and financing contract indebtedness during the
term of the credit facility shall not be less than the amount of
the excess, unless the payment of the excess is otherwise
provided for by agreement of the State executed by the State
Treasurer.
"§ 142-91. Other agreements.
The State Treasurer may authorize, execute, obtain, or
otherwise provide for bond insurance, investment contracts,
credit and liquidity facilities, credit enhancement facilities,
interest rate swap agreements and other derivative products, and
any other related instruments and matters the State Treasurer
determines are desirable in connection with the issuance of
special indebtedness. The State Treasurer is authorized to
employ and designate any financial consultants, underwriters,
fiduciaries, and bond attorneys to be associated with any
incurrence or issuance of special indebtedness under this
Article as the State Treasurer considers appropriate.
"§ 142-92. Tax exemption.
Special indebtedness shall at all times be free from
taxation by the State or any political subdivision or any of
their agencies, excepting estate, inheritance, and gift taxes;
income taxes on the gain from the transfer of the indebtedness;
and franchise taxes. The interest component of any payments made
by the State under special indebtedness, including the interest
component of any certificates of participation, is not subject
to taxation as to income.
"§ 142-93. Investment eligibility.
Special indebtedness are securities or obligations in
which all of the following may invest, including capital in
their control or belonging to them: public officers, agencies,
and public bodies of the State and its political subdivisions;
insurance companies, trust companies, investment companies,
banks, savings banks, savings and loan associations, credit
unions, pension or retirement funds, and other financial
institutions engaged in business in the State; and executors,
administrators, trustees, and other fiduciaries. Special
indebtedness are securities or obligations that may properly and
legally be deposited with and received by any officer or agency
of the State or political subdivision of the State for any
purpose for which the deposit of bonds, notes, or obligations of
the State or any political subdivision of the State is now or
may later be authorized by law.
"§ 142-94. Procurement of capital facilities.
The provisions of Articles 3, 3B, 3C, 3D, and 8 of
Chapter 143 of the General Statutes and any other laws or rules
of the State that relate to the acquisition and construction of
State property apply to the financing of capital facilities
through the use of special indebtedness pursuant to this
Article. This section does not apply to the construction and
lease-purchase, including leases with an option to purchase at
the end of the lease term for a nominal sum, of State office
buildings pursuant to proposals submitted before the effective
date of this Article in response to requests for proposals, to
the extent any of those proposals, as they may be supplemented
or amended, are approved by the Department of Administration and
any of these leases or lease-purchase agreements are approved by
the Council of State in accordance with G.S. 143-341(4)d2."
SECTION 46.3. G.S. 143-341(4) is amended by
adding a new sub-subdivision to read:
"d2. To purchase or finance the
purchase of buildings, utilities, structures,
or other facilities or property developments,
including streets and landscaping, the
acquisition of land, equipment, machinery, and
furnishings in connection therewith;
additions, extensions, enlargements,
renovations, and improvements to existing
buildings, utilities, structures, or other
facilities or property developments, including
streets and landscaping; land or any interest
in land; other infrastructure; furniture,
fixtures, equipment, vehicles, machinery, and
similar items; or any combination of the
foregoing, through installment-purchase, lease-
purchase, or other similar type installment
financing agreements in the manner and to the
extent provided in Article 9 of Chapter 142 of
the General Statutes. Any contract entered
into or any proceeding instituted contrary to
the provisions of this paragraph is voidable
in the discretion of the Council of
State."
SECTION 46.4. Interpretation of Part. (a)
Additional Method. - This part provides an additional and
alternative method for the doing of the things authorized by
this part and shall be regarded as supplemental and additional
to powers conferred by other laws. Except where expressly
provided, this part shall not be regarded as in derogation of
any powers now existing. The authority granted in this part is
in addition to other laws now or hereinafter enacted authorizing
the State to issue or incur indebtedness.
SECTION 46.4.(b) Statutory References. -
References in this part to specific sections or Chapters of the
General Statutes are intended to be references to those sections
or Chapters as they may be amended from time to time by the
General Assembly.
SECTION 46.4.(c) Liberal Construction. - This
part, being necessary for the health and welfare of the people
of the State, shall be liberally construed to effect its
purposes.
SECTION 46.4.(d) Severability. - If any
provision of this part or its application to any person or
circumstance is held invalid, that invalidity does not affect
other provisions or applications of the part that can be given
effect without the invalid provision or application, and to this
end the provisions of this part are severable.
PART XLVI-A. STATE CAPITAL FACILITIES FINANCE
ACQUIRE TWO PRIVATE PRISONS
SECTION 46A.1.(a) Acquisition of Correctional
Facilities. - In accordance with G.S. 142-83, as enacted by this
act, this section authorizes the issuance or incurrence of
financing contract indebtedness to be used to acquire two
correctional facilities that the State currently leases located
in Pamlico County and Avery County. The State Treasurer is
authorized to give notice for, arrange, and consummate the
purchase of these facilities in accordance with this section.
SECTION 46A.1.(b) Pamlico County Correctional
Facility. - The State is authorized to acquire the correctional
facility located in Pamlico County that the State currently
leases from U.S. Corrections Corporation pursuant to the
purchase option provision in the lease. Title to these
facilities shall be held in the name of the State. The cost of
acquiring the Pamlico County correctional facility shall be
financed as provided in Article 9 of Chapter 142 of the General
Statutes.
SECTION 46A.1.(c) Mountain View Correctional
Facility. - The State is authorized to acquire the Mountain View
Correctional Facility located in Avery County that the State
currently leases from Correctional Properties Trust pursuant to
the purchase option provision in the lease. Title to these
facilities shall be held in the name of the State. The cost of
acquiring the Mountain View Correctional Facility shall be
financed as provided in Article 9 of Chapter 142 of the General
Statutes.
SECTION 46A.1.(d) Authorization of Financing
Contracts. - The State, with the prior approval of the State
Treasurer and the Council of State as provided in Article 9 of
Chapter 142 of the General Statutes, is authorized to execute
and deliver one or more financing contracts in order to provide
funds to the State to be used, together with any other available
funds, to pay the cost of acquiring either or both of the
Pamlico County correctional facility and the Mountain View
Correctional Facility described in this section. Notwithstanding
the provisions of G.S. 142-83, no maximum principal amount is
required to be stated in this section authorizing the issuance
or incurrence of financing contract indebtedness for these
purposes.
SECTION 46A.1.(e) Transition. - Funds are
appropriated in this act to the Department of Correction in each
year of the 2003-2005 fiscal biennium to directly or indirectly
pay the property taxes levied on the two facilities to be
acquired pursuant to this section. The Department of Correction
shall make these payments in the amounts appropriated for the
biennium only and, depending upon the ownership status of each
facility for each respective tax year, may recharacterize one or
more of the payments as fees in lieu of the original obligation.
YOUTH DEVELOPMENT CENTERS
SECTION 46A.2. In accordance with G.S. 142-83, as
enacted by this act, this section authorizes the issuance or
incurrence of up to six million seven hundred eighty thousand
dollars ($6,780,000) of financing contract indebtedness to be
used for (i) design, construction drawings, and solicitation of
bids for construction of three youth development centers
totaling up to 500 beds to be operated by the Department of
Juvenile Justice and Delinquency Prevention and (ii) utility
infrastructure and site work for one of the three centers. The
State, with the prior approval of the State Treasurer and the
Council of State as provided in Article 9 of Chapter 142 of the
General Statutes, is authorized to execute and deliver one or
more financing contracts in a maximum principal amount of six
million seven hundred eighty thousand dollars ($6,780,000) in
order to provide funds to the State to be used, together with
any other available funds, to pay these costs. The State
Construction Office shall manage the planning and design of the
youth development centers and shall administer funds provided
pursuant to this section for planning and design.
STRUCTURAL PEST CONTROL TRAINING FACILITY
SECTION 46A.3. In accordance with G.S. 142-83, as
enacted by this act, this section authorizes the issuance or
incurrence of up to three hundred ten thousand dollars
($310,000) of financing contract indebtedness to be used for
constructing and equipping a structural pest control training
facility to be located at North Carolina State University and
comprising a classroom building along with a custom-built
residential foundation to be used as a laboratory for techniques
of subterranean termite treatment. The State, with the prior
approval of the State Treasurer and Council of State as provided
in Article 9 of Chapter 142 of the General Statutes, is
authorized to execute and deliver one or more financing
contracts in a maximum principal amount of three hundred ten
thousand dollars ($310,000) in order to provide funds to the
State to be used, together with any other available funds, to
pay these costs.
PART XLVII. LEASE PURCHASE NEW PRISONS
LEASE-PURCHASE NEW PRISONS
SECTION 47.1. G.S. 148-37.2 reads as rewritten:
"§ 148-37.2. Lease-purchase of three
prison facilities.
(a)Authorization. - The Secretary of Correction may, as
provided in this section, enter contracts with private
for-profit or nonprofit firms for the construction of
three close security correctional facilities
totaling up to 3,000 cells described in
subsection (a1) of this section to be operated by the
Department pursuant to a lease that contains a schedule for
purchase of the facilities over a period of up to 20 years.
The State, with the prior approval of the Council of State
and the State Treasurer as provided in this section, is
authorized to execute and deliver one or more lease-purchase
agreements with a special nonprofit corporation providing for
the lease-purchase by the State of the Projects from the special
nonprofit corporation in connection with and under an
arrangement whereby certificates of participation are sold and
delivered by the special nonprofit corporation in order to
provide funds to pay the purchase price of the Projects. The
Projects will be constructed by selected contractors designated
to the special nonprofit corporation by the State Property
Office of the Department of Administration in consultation with
the Department of Correction. The selected contractors
will be responsible for arranging for and obtaining their own
construction financing, which will consist solely of private
funds. The Projects will be sold to the special
nonprofit corporation, with the purchase price paid by the
special nonprofit corporation from the proceeds of the
certificates of participation. The State may lease the real
property upon which the Projects will be located, if owned by
the State, to the selected contractors constructing the Projects
and to the special nonprofit corporation for nominal
consideration.
(a1) Facilities Authorized. - The following
facilities are authorized under this section:
(1) 2001 Facilities. - Three close
security correctional facilities totaling up to
3,000 cells.
(2) 2003 Facilities. - Three close
security correctional facilities substantially
identical to the facilities described in
subdivision (1) of this subsection and totaling up
to 3,000 cells. If the State and the special
nonprofit corporation are able to negotiate a
contract for one or more of these facilities with
the construction contractor that constructed the
facilities described in subdivision (1) of this
subsection on terms that are reasonable and
desirable to the State as determined by the State
Treasurer, the Secretary of Administration, and the
Council of State, then a request for proposals
under subsection (c) of this section is not
required. The remaining provisions of this section
continue to apply.
(b) Definitions. - The following definitions apply in this
section:
(1) Certificates of participation. - Certificates or
other instruments delivered by a special nonprofit
corporation as provided in this section evidencing
the assignment of proportionate and undivided
interests in the rights to receive lease payments
to be made by the State pursuant to a
lease-purchase agreement.
(2) Construction contract agreement. - A
Either of the following:
a. A contract between the Department
of Correction and the selected contractors for
construction of the Projects, under which the
selected contractors will be responsible for
arranging for and obtaining their own
construction financing, which will consist
solely of private funds.
b. A contract between the special
nonprofit corporation and the selected
contractors for construction of the Projects,
but only if the contract has provisions
sufficient to carry out the requirements of
the last paragraph of subsection (c) of this
section. The Secretary of Correction shall
determine the sufficiency of the contract and
shall approve the contract only if it is
sufficient.
(3) Lease-purchase agreement. - A lease-purchase
agreement entered into pursuant to this section,
under which the State will lease the Projects from
the special nonprofit corporation, with option to
purchase.
(4) Projects. - Three close security
correctional facilities providing up to 3,000
cells Facilities described in
subsection (a1) of this section to be
constructed by selected contractors, sold to the
special nonprofit corporation, and leased to the
State pursuant to this section.
(5) Purchase agreement. - A contract under which the
special nonprofit corporation will purchase the
Projects from the selected contractors.
(6) Selected contractors. - One or more private firms
selected to construct the Projects.
(7) Special nonprofit corporation. - A nonprofit
corporation created under Chapter 55A of the
General Statutes and designated by the State
Treasurer for entering into the transactions
contemplated by this section.
(c) Request for Proposals. - The Secretary of Correction may
issue a request for proposals to private firms for the private
firms to construct the Projects in accordance with plans and
specifications developed by the Department of Correction and
reviewed by the Office of State Construction. The
request for proposals shall provide for the option of proposing
on one or more of the facilities, and shall require each
proposer to provide a separate proposal on a single facility of
up to 1,000 cells. It is the intent of the General Assembly that
the State may decide to accept proposals for only one, for two,
or for all three facilities.
The Secretary of Correction shall make recommendations to the
State Property Office of the Department of Administration on the
final award decision. The Department of Correction and the State
Property Office of the Department of Administration shall
consult with the Joint Legislative Commission on Governmental
Operations before making the final award decision. The
Department of Administration shall make the final award
decision, which shall then be subject to the approval of the
Council of State. If the contract for construction of the
2003 facilities is entered into with the construction contractor
who constructed the 2001 facilities as provided by subdivision
(a1)(2) of this section, the general terms and conditions of the
construction contract for the 2003 facilities shall be
substantially similar to the terms and conditions of the
construction contracts for the construction of the 2001
facilities, including, without limitation, terms and conditions
regarding the activities, performance, and construction
standards required of the contractor, the arrangements for
selection and retention of subcontractors by the contractor, and
the responsibility of the contractor for the performance by the
selected subcontractors. The construction contract for the 2003
facilities may, however, contain any changes from the
construction contracts for the 2001 facilities that may be
necessary or desirable to reflect the financing arrangements for
the 2003 facilities, including provisions for the periodic
payment of construction costs based upon construction
progress.
The Department of Correction will enter into a construction
contract agreement with the selected contractors for the
construction of the Projects.Projects or,
alternatively, the construction contract may be entered into
with the selected contractor by the special nonprofit
corporation, with the approval of the Department of
Correction. The special nonprofit corporation will enter
into a purchase agreement with the selected contractors for the
sale of the constructed Projects to the special
nonprofit corporation. With respect to the 2003 facilities,
the purchase agreement may provide for the periodic payment by
the special nonprofit corporation to the selected contractor of
portions of the purchase price during the construction of the
2003 facilities on the basis of construction progress, rather
than a payment of the entire purchase price upon delivery of the
2003 facilities. The Department of Correction shall furnish
plans and specifications for review by the State Construction
Office. Construction contract agreements entered into under this
section shall provide that the Department of Correction and the
Office of State Construction shall inspect and review each
facility during construction to ensure and determine jointly
that the facility is suitable for use as a correctional facility
and for future acquisition by the State. The Department of
Correction may contract with a design consortium for
construction administration services.
(d) Approval of Lease-Purchase Agreement. - A lease-purchase
agreement may not be entered into pursuant to this section
unless the following conditions are met before the
lease-purchase agreement is entered into: (i) the Council of
State, by resolution, approves the execution and delivery of the
lease-purchase agreement, and (ii) the State Treasurer approves
the lease-purchase agreement and all other documentation related
to it, including any leasehold deed of trust or trust agreement
in connection with it. The resolution of the Council of State
may include any matters the Council of State determines. In
determining whether to approve the lease-purchase agreement, the
State Treasurer may consider any factors as the State Treasurer
considers relevant in order to find and determine that all of
the following conditions are met:
(1) The principal amount to be financed under the
lease-purchase agreement is adequate and not
excessive for the purpose of paying the cost of the
Projects.
(2) The increase, if any, in State revenues necessary
to pay the sums to become due under the
lease-purchase agreement is not excessive.
(3) The lease-purchase agreement can be entered into on
terms desirable to the State.
(4) The sale of certificates of participation will not
have an adverse effect on any scheduled or proposed
sale of obligations of the State or any State
agency or of any unit of local government in the
State.
(e) Terms and Conditions. - The following provisions apply to
a lease-purchase agreement entered into under this section:
(1) In order to secure the performance by the State of
its obligations under the lease-purchase agreement,
the lease-purchase agreement may require the
eviction of the State from the occupancy of one or
more of the Projects in the event that the State
breaches its obligations and agreements under the
lease-purchase agreement.
(2) No deficiency judgment may be rendered against the
State or any agency, department, or commission of
the State in any action for breach of any
obligation contained in the lease-purchase
agreement or any other related documentation, and
the taxing power of the State or any agency,
department, or commission of the State is not and
may not be pledged to secure any moneys due under
the lease-purchase agreement.
(3) The lease-purchase agreement shall not contain a
nonsubstitution clause that restricts the right of
the State to replace or provide a substitute for
the Projects.
(4) The lease-purchase agreement may include provisions
requesting the Governor to submit in the Governor's
budget proposal, or any amendments or supplements
to it, appropriations necessary to make the
payments required under the lease-purchase
agreement.
(5) The lease-purchase agreement may contain any
provisions for protecting and enforcing the rights
and remedies of the special nonprofit corporation
that are reasonable and proper and not in violation
of law, including covenants setting forth the
duties of the State with respect to the Projects,
which may include provisions relating to insuring,
operating, and maintaining the Projects and the
custody, safeguarding, investment, and application
of moneys.
(6) The lease-purchase agreement may designate the
lease payments to be paid by the State under it to
be "principal components" and "interest
components." Any interest component of the lease
payments may be calculated based upon a fixed or
variable interest rate or rates as determined by
the State Treasurer.
(7) The lease-purchase agreement may be entered into by
the State, and certificates of participation may be
delivered by the special nonprofit corporation, at
any time, including at times prior to the delivery
of the completed Projects to the special
nonprofit corporation for
purchase,corporation, and the
related delivery of occupancy of the Projects to
the State by the special nonprofit corporation.
The lease-purchase agreement may require the
State to make prepayments of lease payments at a
time prior to when the State accepts occupancy of
the Projects. The lease-purchase agreement and
related financing arrangements may provide for the
funding of interest during construction from the
proceeds of certificates of participation. The
costs incurred in connection with the preparation
of the lease-purchase agreement and related
documents and the delivery of the certificates of
participation may be paid from the proceeds of the
certificates of participation.
(8) The State is authorized to agree in the
lease-purchase agreement to indemnify the special
corporation and its directors and agents for any
liabilities that arise to the special corporation
or directors or agents on account of their
participation in the activities contemplated by
this act.
(f) Faith and Credit Not Pledged. - The payment of amounts
payable by the State under the lease-purchase agreement and
other related documentation during any fiscal biennium or fiscal
year is limited to funds appropriated for that purpose by the
General Assembly in its discretion. No provision of this section
and no lease-purchase agreement creates any pledge of the faith
and credit of the State or any agency, department, or commission
of the State within the meaning of any constitutional debt
limitation.
(g) Certificates of Participation. - The State may cooperate
as necessary to effectuate the delivery by the special nonprofit
corporation of tax-exempt certificates of participation,
including participating in the preparation of offering
documents, the filing of required tax forms and agreeing to
comply with restrictions on the use of the Projects as required
in order for the interest component of the lease payments to be
tax-exempt. Disclosures and compliance with other federal law
requirements by the special nonprofit corporation shall be under
the direction of the State Treasurer. Certificates of
participation may be sold at the direction of the State
Treasurer in the manner, either at public or private sale, and
for any price or prices that the State Treasurer determines to
be in the best interest of the State and to effect the purposes
of this section. Interest payable with respect to certificates
of participation shall accrue at the rate or rates determined by
the State Treasurer with the approval of the special nonprofit
corporation.
Certificates of participation may be delivered pursuant to a
trust agreement with a corporate trustee approved by the State
Treasurer. The corporate trustee may be any trust company or
bank having the powers of a trust company within or without the
State. A trust agreement may (i) provide for security and
pledges and assignments with respect to the security as may be
permitted under this section and further provide for the
enforcement of any lien or security interest created pursuant to
this section, and (ii) contain any provisions for protecting and
enforcing the rights and remedies of the owners of any
certificates of participation that are reasonable and proper and
not in violation of law as determined by the State Treasurer.
The State Treasurer shall designate the professionals providing
legal or financial services relating to the lease-purchase
agreement and the delivery of certificates of participation,
including the provider of any credit facility and the
underwriter or placement agent for any certificates of
participation.
(h) Tax Exemption. - The lease purchase agreement and any
certificates of participation relating to it shall at all times
be free from taxation by the State or any political subdivision
or any of their agencies, excepting estate, inheritance, or gift
taxes, income taxes on the gain from the transfer of the
lease-purchase agreement and certificates of participation, and
franchise taxes. The interest component of the lease payments
made by the State under the lease-purchase agreement, including
the interest payable with respect to any certificates of
participation, is not subject to taxation as income.
(i) Licensing Requirements. - The private for-profit
or nonprofit firms authorized to respond to requests for
proposal proposals authorized by this
section, or entitled to be a Selected
Contractor selected contractor pursuant to
any response to such proposal, this
section, need not be a licensed general contractor within
the meaning of G.S. 87-1 so that providing a response to
such request for proposal the request or
entering a Construction Contract Agreement or Purchase
Agreement shall not be deemed construction contract
agreement or purchase agreement is not general contracting
within the meaning of G.S. 87-1; provided that
this87-1. This subsection shall not be
deemed to does not remove the actual
construction of any prison facility from the provisions of G.S.
87-1.
(j) Minority Business Participation. - G.S.
143-128.2 applies to the Projects authorized in this
section."
SECTION 47.2. The two 1000-cell close security
prototypical prisons to be constructed in Greene County and
Bertie County shall be constructed in accordance with the North
Carolina State Building Code, 1996 Edition through 1999
revisions, if construction starts before January 1, 2004. This
section applies only if the construction documents have been
reviewed and approved by the Department of Insurance, the State
Construction Office, and the Department of Correction.
PART XLVIII. GENERAL PROVISIONS
GENERAL PROVISIONS
SECTION 48.1. Parts 32 through 47 of this act do
not affect the rights or liabilities of the State, a taxpayer,
or another person arising under a statute amended or repealed by
those parts before the effective date of its amendment or
repeal; nor do they affect the right to any refund or credit of
a tax that accrued under the amended or repealed statute before
the effective date of its amendment or repeal.
SECTION 48.2. Except as otherwise provided in
this act, parts 32 through 48 of this act are effective when
this act becomes law.
PART XLIX. MISCELLANEOUS PROVISIONS
EXECUTIVE BUDGET ACT APPLIES
SECTION 49.1. The provisions of the Executive
Budget Act, Chapter 143, Article 1 of the General Statutes, are
reenacted and shall remain in full force and effect and are
incorporated in this act by reference.
COMMITTEE REPORT
SECTION 49.2.(a) The Joint Conference Committee
Report on the Continuation, Expansion and Capital Budgets, dated
June 28, 2003, which was distributed in the House of
Representatives and the Senate and used to explain this act,
shall indicate action by the General Assembly on this act and
shall therefore be used to construe this act, as provided in
G.S. 143-15 of the Executive Budget Act, and for these purposes
shall be considered a part of this act and as such shall be
printed as a part of the Session Laws.
SECTION 49.2.(b) The budget enacted by the
General Assembly for the maintenance of the various departments,
institutions, and other spending agencies of the State for the
2003-2005 fiscal biennium is a line item budget, in accordance
with the Budget Code Structure and the State Accounting System
Uniform Chart of Accounts set out in the Administrative Policies
and Procedures Manual of the Office of the State Controller.
This budget includes the appropriations made from all sources
including the General Fund, Highway Fund, special funds, cash
balances, federal receipts, and departmental receipts.
The General Assembly amended the itemized budget
requests submitted to the General Assembly by the Director of
the Budget and the Advisory Budget Commission, in accordance
with the Joint Conference Committee Report on the Continuation,
Expansion and Capital Budgets, dated June 28, 2003, together
with any accompanying correction sheets.
The budget enacted by the General Assembly shall be
interpreted in accordance with the special provisions in this
act and in accordance with other appropriate legislation.
In the event that there is a conflict between the line
item budget certified by the Director of the Budget and the
budget enacted by the General Assembly, the budget enacted by
the General Assembly shall prevail.
MOST TEXT APPLIES ONLY TO THE 2003-2005 FISCAL BIENNIUM
SECTION 49.3. Except for statutory changes or other
provisions that clearly indicate an intention to have effects
beyond the 2003-2005 fiscal biennium, the textual provisions of
this act apply only to funds appropriated for, and activities
occurring during, the 2003-2005 fiscal biennium.
EFFECT OF HEADINGS
SECTION 49.4. The headings to the parts and
sections of this act are a convenience to the reader and are for
reference only. The headings do not expand, limit, or define
the text of this act, except for effective dates referring to a
Part.
SEVERABILITY CLAUSE
SECTION 49.5. If any section or provision of this
act is declared unconstitutional or invalid by the courts, it
does not affect the validity of this act as a whole or any part
other than the part so declared to be unconstitutional or
invalid.
EFFECTIVE DATE
SECTION 49.6. Except as otherwise provided, this
act becomes effective July 1, 2003.
In the General Assembly read three times and ratified
this the 30th day of June, 2003.
s/ Beverly E. Perdue
President of the Senate
s/ Richard T. Morgan
Speaker of the House of
Representatives
s/ Michael F. Easley
Governor
Approved 5:18 p.m. this 30th day of June, 2003