GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
S 1
SENATE BILL 1344
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Short Title: Governors Budget. |
(Public) |
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Sponsors: |
Senators Garrou, Albertson, Dannelly, and Swindell. |
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Referred to: |
Appropriations/Base Budget. |
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May 24, 2010
A BILL TO BE ENTITLED
AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
The General Assembly of North Carolina enacts:
PART I. INTRODUCTION AND TITLE OF ACT
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 State 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 2010."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
SECTION 2.1. Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated, are adjusted for the fiscal year ending June 30, 2011, according to the schedule that follows. Amounts set out in brackets are reductions from General Fund appropriations for the 2010‑2011 fiscal year.
Current Operations – General Fund 2010‑2011
EDUCATION
Community Colleges System Office $ 32,282,306
Department of Public Instruction (314,828,201)
University of North Carolina – Board of Governors
Appalachian State University 2,867,554
East Carolina University
Academic Affairs 5,758,810
Health Affairs 0
Elizabeth City State University 732,222
Fayetteville State University 1,155,186
North Carolina Central University 1,254,688
North Carolina School of the Arts 219,749
North Carolina State University
Academic Affairs 10,454,599
Agricultural Extension 0
Agricultural Research 0
University of North Carolina at Asheville 1,048,747
University of North Carolina at Chapel Hill
Academic Affairs 6,842,536
Health Affairs 156,027
Area Health Education Centers 115,360
University of North Carolina at Charlotte 6,433,798
University of North Carolina at Greensboro 3,521,383
University of North Carolina at Pembroke 789,362
University of North Carolina at Wilmington 3,139,825
NCA&T 2,218,210
Western Carolina University 1,412,533
Winston‑Salem State University 798,672
General Administration (1,909,887)
University Institutional Programs (36,298,756)
UNC Related Educational Programs 34,856,563
UNC Financial Aid for Private Colleges (1,172,542)
North Carolina School of Science and Mathematics 0
UNC Hospitals at Chapel Hill (1,716,463)
Total University of North Carolina – Board of Governors $ 42,678,176
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Division of Central Management and Support $ (4,291,405)
Division of Aging and Adult Services 1,000,000
Division of Services for the Blind and Deaf/Hard of Hearing (614,064)
Division of Child Development (17,009,838)
Office of Education Services (1,287,310)
Division of Health Service Regulation (2,478,879)
Division of Medical Assistance (394,083,299)
Division of Mental Health, Developmental Disabilities,
and Substance Abuse Services 33,072,692
NC Health Choice 8,467,643
Division of Public Health 6,777,031
Division of Social Services (12,655,513)
Division of Vocational Rehabilitation (3,316,000)
Total Health and Human Services $ (386,418,942)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ (4,239,178)
Department of Commerce
Commerce 22,557,213
Commerce State‑Aid 5,200,000
NC Biotechnology Center 3,000,000
Rural Economic Development Center 5,000,000
Department of Environment and Natural Resources
Environment and Natural Resources (116,212)
Clean Water Management Trust Fund 0
Department of Labor (1,219,388)
JUSTICE AND PUBLIC SAFETY
Department of Correction $ (45,551,555)
Department of Crime Control and Public Safety (819,000)
Judicial Department (9,216,294)
Judicial Department – Indigent Defense 1,828,954
Department of Justice (2,802,152)
Department of Juvenile Justice and Delinquency Prevention (5,852,393)
GENERAL GOVERNMENT
Department of Administration $ (1,712,290)
Office of Administrative Hearings (307,026)
Department of State Auditor (746,955)
Office of State Controller 8,594,863
Department of Cultural Resources
Cultural Resources (2,897,180)
Roanoke Island Commission (139,344)
State Board of Elections 294,735
General Assembly (2,731,696)
Office of the Governor
Office of the Governor (303,400)
Office of State Budget and Management 407,584
OSBM – Reserve for Special Appropriations 750,000
Housing Finance Agency 0
Department of Insurance
Insurance (1,796,372)
Insurance – Volunteer Safety Workers' Compensation (400,000)
Office of Lieutenant Governor (63,800)
Department of Revenue 3,521,022
Department of Secretary of State (537,958)
Department of State Treasurer
State Treasurer (422,191)
State Treasurer – Retirement/Benefits 0
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Contingency and Emergency Fund $ 0
Compensation Increase Reserve 61,136,150
"Back to Work" Incentive Fund 15,000,000
Convert Contractual Employees to Permanent 0
Pay Reduction Hold Harmless 62,500,000
Job Development Incentive Grants Reserve (6,600,000)
Statewide Administrative Support Reduction 0
Motor Fleet Rate Adjustment (2,200,000)
Health Plan Reserve 0
Retirement Rate Adjustment Reserve‑COLA 20,000,000
Judicial Retirement 0
IT Initiative 0
Savings Reserve Direct Appropriations 101,524,821
TOTAL CURRENT OPERATIONS – GENERAL FUND $ (410,319,016)
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) Section 2.2(a) of S.L. 2009‑451 is repealed. The General Fund availability used in adjusting the 2010‑2011 budget is shown below:
FY 2010‑2011
Unappropriated Balance from FY 2009‑2010, S.L. 2009‑451 $ 83,171,017
Projected Reversions from FY 2009‑2010 0
Projected Overcollections from FY 2009‑2010 0
Less: Credit to Savings Reserve Account 0
Less: Credit to Repairs and Renovation Reserve Account 0
Beginning Unreserved Fund Balance $ 83,171,017
Revenues Based on Existing Tax Structure $ 18,199,339,654
Nontax Revenues
Investment Income $ 57,500,000
Judicial Fees 239,100,000
Disproportionate Share 100,000,000
Insurance 67,000,000
Other Nontax Revenues 182,700,000
Highway Trust Fund Transfer 72,894,864
Highway Fund Transfer 17,504,498
Subtotal Nontax Revenues $ 736,699,362
Total General Fund Availability $19,752,139,885
Adjustments to Availability: 2010 Session
Conform to Federal HIRE ACT $ 4,900,000
Continue to Phase Out of Highway Trust Fund Transfer (22,000,000)
Tax Relief for Small Business Equipment Purchases (2,800,000)
High Unemployment Hiring Incentive 0
Extend Qualified Business Venture Credit and Raise Cap (8,000,000)
Extend Sunset for Small Business Health Benefits Credit (5,000,000)
Small Business Start‑Up Tax Relief (Founder's Credit) 0
Extend Refund for Motorsports Aviation (100,000)
Transfer from Disproportionate Share Reserve 35,000,000
Public Safety Fees 14,445,560
Divert Scrap Tire Tax 1,514,642
Divert White Goods Management Tax 775,325
Divert a Portion of Wildlife Taxes 1,500,000
Department of Revenue Settlement Initiative 110,000,000
Subtotal Adjustments to Availability: 2010 Session $ 130,235,527
Revised General Fund Availability for 2010‑2011 Fiscal Year $ 19,149,445,560
Less: Total General Fund Appropriations for 2010‑2011 Fiscal Year $ (19,149,445,560)
Unappropriated Balance Remaining $ 0
SECTION 2.2.(b) Notwithstanding the provisions of G.S. 105‑187.9(b)(1), the sum to be transferred under that subdivision for the 2010‑2011 fiscal year is seventy‑one million dollars ($71,000,000).
SECTION 2.2.(c) Pursuant to G.S. 105‑187.9(b)(2), the sum to be transferred under that subdivision for the 2010‑2011 fiscal year is one million eight hundred thousand dollars ($1,800,000).
SECTION 2.2.(d) The appropriations made in this act to the Clean Water Management Trust Fund in the amount of fifty million dollars ($50,000,000) for the 2010‑2011 fiscal year are made pursuant to G.S. 113A‑253.1 and are not in addition to the statutory appropriation made in G.S. 113A‑253.1.
SECTION 2.2.(e) The appropriations made in this act to the State Health Plan for the 2010‑2011 fiscal year are made pursuant to S.L. 2009‑16 and are not in addition to the appropriations made in that act.
SECTION 2.2.(f) Notwithstanding the provisions of G.S. 115C‑546.1, the Secretary of Revenue shall transfer the funds specified in G.S. 115C‑546.1(b) to the State Controller for deposit in Nontax Budget Code 19978 (Intrastate Transfers) during the 2009‑2011 fiscal biennium to offset continued operations of the State's public schools.
SECTION 2.2.(g) Notwithstanding G.S. 143C‑9‑3, of the funds credited to the Tobacco Trust, the sum of five million dollars ($5,000,000) 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 (Intrastate Transfers) to support General Fund appropriations for the 2010‑2011 fiscal year. These funds shall be transferred on or after April 30, 2011.
SECTION 2.2.(h) Notwithstanding G.S. 143C‑9‑3, of the funds credited to the Health Trust Account, the sum of five million dollars ($5,000,000) that would otherwise be deposited in the Fund Reserve 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 (Intrastate Transfers) to support General Fund appropriations for the 2010‑2011 fiscal year. These funds shall be transferred on or after April 30, 2011.
SECTION 2.2.(i) Notwithstanding G.S. 143C‑4‑2, the State Controller shall not transfer any funds from the unreserved fund balance to the Savings Reserve Account on June 30, 2010. This subsection becomes effective June 30, 2010.
SECTION 2.2.(j) Notwithstanding the provisions of G.S. 143C‑4‑3, the State Controller shall not transfer any funds from the unreserved fund balance to the Repairs and Renovations Reserve Account on June 30, 2010. This subsection becomes effective June 30, 2010.
SECTION 2.2.(k) Notwithstanding the provisions of G.S. 105‑187.19(b), effective for taxes levied during the 2010‑2011 fiscal year, the Secretary of Revenue shall credit to the General Fund the net tax proceeds that G.S. 105‑187.19(b) directs the Secretary to credit to the Scrap Tire Disposal Account.
Notwithstanding the provisions of G.S. 105‑187.24, effective for taxes levied during the 2010‑2011 fiscal year, the Secretary of Revenue shall credit to the General Fund the net tax proceeds that G.S. 105‑187.24 directs the Secretary to credit to the White Goods Management Account.
Notwithstanding the provisions of G.S. 105‑164.44B, effective for taxes levied during the 2010‑2011 fiscal year, the Secretary of Revenue shall credit to the General Fund one million five hundred thousand dollars ($1,500,000) of the net tax proceeds that G.S. 105‑164.44B directs the Secretary to transfer to the Wildlife Resources Fund.
PART III. CURRENT OPERATIONS/HIGHWAY FUND
CURRENT OPERATIONS/HIGHWAY FUND
SECTION 3.1. Revised appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the fiscal year ending June 30, 2011, according to the following schedule:
Current Operations – Highway Fund 2010‑2011
Adjustments
DOT – General Administration $ 1,544,289
Highway Division Administration
State Match for Federal Aid‑Planning and Research
Construction Program:
State Secondary System 3,840,718
Division Small Urban Construction
Discretionary Funds
Spot Safety Improvements
Access and Public Services Roads
Total Construction Program $ 3,840,718
Maintenance Program
Primary System
Secondary System
System Preservation
Contract Resurfacing
General Maintenance Reserve $ (3,698,277)
Total Maintenance Program $ (3,698,277)
Ferry Operations $ 4,805,311
State Aid to Municipalities (785,319)
State Aid to Railroads 6,325,000
State Aid for Public Transportation
Airports
OSHA
Governor's Highway Safety Program
Division of Motor Vehicles 544,623
Total Department of Transportation $ 12,576,345
Appropriations to Other State Agencies:
Agriculture
Revenue
State Treasurer
Office of State Controller‑BEST Shared Services
Public Instruction – Civil Penalties
Public Instruction – Driver Education $ 32,021,964
CCPS – Highway Patrol 4,700,000
DENR – LUST Trust Fund (40,000)
DHHS – Chemical Test
Total – Other State Agencies $ 36,681,964
Reserves and Transfers:
Minority Contractor Development
State Fire Protection Grant
Stormwater Discharge Permit
Reserve for Visitor's Centers
Global TransPark
Reserve for Health Insurance Adjustment
Employer's Contribution to Retirement $ 930,050
Reserve for State Employees Payback 2,701,641
Total Reserves and Transfers $ 3,631,691
Total Highway Fund Appropriation $ 52,890,000
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. The Highway Fund availability used in developing modifications to the 2010‑2011 Highway Fund budget contained in this act is shown below:
Highway Fund Availability Statement 2010‑2011
Recommended
Beginning Credit Balance ‑
Estimated Revenue $ 1,792,540,000
Estimated Reversions ‑
Total Highway Fund Availability $ 1,792,540,000
PART IV. HIGHWAY TRUST FUND APPROPRIATIONS
HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 4.1. Revised appropriations from the Highway Trust Fund are made for the fiscal year ending June 30, 2011, according to the following schedule:
Highway Trust Fund 2010‑2011
Adjustments
Department of Transportation:
Maximum Allowance for Administration $ 371,520
Construction Allocation:
Intrastate System 4,995,162
Urban Loop System 2,019,836
Secondary Roads (170,627)
NC Mobility Fund 94,583,983
State Aid to Municipalities 524,109
Bonds:
Bond Redemption
Bond Interest
NC Turnpike Authority
Transfer to the General Fund (22,000,000)
Total Highway Trust Fund Appropriations $ 80,323,983
HIGHWAY TRUST FUND AVAILABILITY STATEMENT
SECTION 4.2. The Highway Trust Fund availability used in developing modifications to the 2010‑2011 Highway Trust Fund budget contained in this act is shown below:
Highway Trust Fund Availability Statement 2010‑2011
Recommended
Beginning Credit Balance ‑
Estimated Revenue $ 1,001,313,983
Estimated Reversions ‑
Total Highway Trust Fund Availability $ 1,001,313,983
PART V. OTHER AVAILABILITY AND APPROPRIATIONS
EDUCATION LOTTERY
SECTION 5.1.(a) Pursuant to G.S. 18C‑164, the revenue used to support appropriations made in this act is transferred from the State Lottery Fund in the amount of four hundred forty‑one million three hundred forty‑seven thousand five hundred dollars ($441,347,500) for the 2010‑2011 fiscal year.
SECTION 5.1.(b) The appropriations made from the Education Lottery Fund pursuant to G.S. 18C‑164(d) for the 2010‑2011 fiscal year are as follows:
(1) Class Size Reduction $ 136,038,041
(2) Prekindergarten Program 84,635,709
(3) Public School Building Capital Fund 176,539,000
(4) Scholarships for Needy Students 44,134,750
Total $ 441,347,500
SECTION 5.1.(c) Notwithstanding G.S 18C‑164(f) or any other provision of law, excess lottery receipts realized in the 2009‑2010 fiscal year in the amount of thirty‑one million eight hundred eighty‑one thousand forty‑six dollars ($31,881,046) shall be transferred to the Public School Building Capital Fund and allocated on the basis of average daily membership (ADM) to those local school administrative units that did not qualify for funding in the 2009‑2010 fiscal year pursuant to G.S. 115C‑546.2(d)(2). Notwithstanding G.S. 18C‑164(f) or any other provision of law, the balance of the excess lottery revenues realized in the 2009‑2010 fiscal year shall be transferred to the Education Lottery Reserve Fund as established in G.S. 18C‑164(b).
SECTION 5.1.(d) This section is effective June 30, 2010.
INFORMATION TECHNOLOGY FUND APPROPRIATION
SECTION 5.3. Section 5.3(b) of S.L. 2009‑451 is repealed. Appropriations are made from the Information Technology Fund for the 2010‑2011 fiscal year as follows:
Office of Information Technology Services FY 2010‑2011
Information Technology Operations
Center for Geographic Information and Analysis $740,000
Enterprise Security Remediation Management Office $1,101,296
Enterprise Project Management Office $1,795,000
Architecture and Engineering $648,000
Total Information Technology Operations $4,284,296
Information Technology Projects
Enterprise Licensing $300,000
State Portal $500,000
Enterprise Identity Management $1,250,000
IT Consolidation $2,733,171
Total Information Technology Projects $4,783,171
TOTAL $9,067,467
OTHER RECEIPTS FROM PENDING GRANT AWARDS
SECTION 5.4. Section 5.6 of S.L. 2009‑451 reads as rewritten:
"SECTION 5.6. Notwithstanding G.S. 143C‑6‑4,
State agencies may, with approval of the Director of the Budget and after
consultation with the Joint Legislative Committee on Governmental Operations, Budget,
spend funds received from grants awarded subsequent to the enactment of
this act. The Office of State Budget and Management shall work with the
recipient State agencies to budget grant awards according to the annual program
needs and within the parameters of the respective granting entities. Depending
on the nature of the award, additional State personnel may be employed on either
a time‑limited or permanent basis. The Office of State Budget
and Management shall consult with the Joint Legislative Commission on
Governmental Operations prior to expending report to the Fiscal Research
Division within 30 days on any funds received from grant awards. grants
awarded subsequent to the enactment of this act. Funds received from
such grants are hereby appropriated and shall be incorporated into the
certified budget of the recipient State agency."
PART VI. GENERAL PROVISIONS
Repeal REQUIREMENT FOR MAILING LIST CERTIFICATIONS
SECTION 6.1. G.S. 143‑169.1 is repealed.
GOVERNMENT REORGANIZATION
SECTION 6.2.(a) At the direction of the Governor, the Governor's Budget Reform and Accountability Commission (BRAC), with assistance from the Office of State Budget and Management, is currently developing a proposed government reorganization that would reconfigure or eliminate selected State agencies to achieve greater efficiency and improve accountability. The Governor shall review the proposed plan and make recommendations in the form of executive orders to the General Assembly for consideration at the 2011 legislative session as provided by Article III, Sec. 5(10) of the Constitution.
SECTION 6.2.(b) Where appropriate, the study of the proposed reorganization may be conducted in consultation with other regulatory or oversight agencies, such as the Office of State Personnel, the Fiscal Research Division, or the Program Evaluation Division.
SECTION 6.2.(c) The Office of State Budget and Management shall use any available funds to contract with outside resources where necessary and appropriate to assist in developing the BRAC's proposals for reorganization.
NETWORK SECURITY ASSESSMENTS
SECTION 6.3.(a) G.S. 147‑33.111 is amended by adding a new subsection to read:
"(b1) The State Chief Information Officer shall conduct assessments of network vulnerability, including network penetration or any similar procedure. The State Chief Information Officer may contract with another party or parties to perform the assessments. Detailed reports of the security issues identified shall be kept confidential as provided in G.S. 132‑6.1(c)."
SECTION 6.3.(b) G.S. 147‑33.111(c) reads as rewritten:
"(c) Before a State agency may enter into any contract
with another party for an assessment of network vulnerability, including
network penetration or any similar procedure, the State agency shall notify
the State Chief Information Officer and obtain approval of the request. The
State Chief Information Officer shall refer the request to the State Auditor
for a determination of whether the Auditor's office can perform the assessment
and testing. If the State Auditor determines that the Auditor's office can
perform the assessment and testing, then the State Chief Information Officer
shall authorize the assessment and testing by the Auditor. If the State Auditor
determines that the Auditor's office cannot perform the assessment and testing,
then with the approval of the State Chief Information Officer and State
Auditor, the State agency may enter into a contract with another party for the
assessment and testing. If the State agency enters into a contract with
another party for assessment and testing, after approval by the State Chief
Information Officer, the State agency shall issue public reports on the
general results of the reviews. The contractor shall provide the State agency
with detailed reports of the security issues identified that shall not be
disclosed as provided in G.S. 132‑6.1(c). The State agency shall
provide the State Chief Information Officer and the State Auditor with
copies of the detailed reports that shall not be disclosed as provided in G.S. 132‑6.1(c).
Nothing in this subsection shall preclude the Office of State Auditor from
assessing the security practices of information technology systems as a part of
its duties and responsibilities."
SECTION 6.3.(b) G.S. 147‑64.6(c)(18) is repealed.
MANAGEMENT FLEXIBILITY REDUCTIONS
SECTION 6.4. Except as otherwise specified in Parts VII, VIII, and IX in this act, the management flexibility reductions included in this act for all State agencies shall not be allocated using an across‑the‑board method but in a manner that recognizes the importance of the core mission of each agency. Before taking reductions in operational budgets, each agency shall consider reducing budgets for senior and middle management personnel, vacant positions, and program efficiencies. Items identified for reduction shall be presented to the Office of State Budget and Management within 30 days of when this act becomes law. All reduction options shall be reviewed and approved by the Office of State Budget and Management within 30 days of an agency's submission.
CARRYFORWARD SEVERANCE EXPENDITURE RESERVE
SECTION 6.5.(a) Funds appropriated for the statewide severance expenditure reserve in FY 2009‑2010 that remain unspent and unencumbered shall remain available for the 2010‑2011 fiscal year for severance salary continuation payments and noncontributory hospital/medical coverage under the State Health Plan for employees reduced‑in‑force pursuant to this act.
SECTION 6.5.(b) This section becomes effective June 30, 2010.
AMEND STATE BUDGET ACT
SECTION 6.6.(a) G.S. 143C‑1‑1(d) is amended by adding a new subdivision to read:
"(31) Authorized budget. – The certified budget as defined in G.S. 143C‑1‑1.(d) added to allowable budget adjustments authorized by the State Budget Act and the Director of the Budget."
SECTION 6.6.(b) G.S. 143C‑3‑5.(d) reads as rewritten:
"(d) Funds Included in Budget. – Consistent with requirements of the North Carolina Constitution, Article 5, Section 7(a), the Governor's Recommended State Budget, together with the Budget Support Document, shall include recommended expenditures of State funds from all Governmental and Proprietary Funds, as those funds are described in G.S. 143C‑1‑3, and all funds established for The University of North Carolina and its constituent institutions that are subject to Chapter 143C. Except where provided otherwise by federal law, funds received from the federal government become State funds when deposited in the State treasury and shall be classified and accounted for in the Governor's budget recommendations no differently than funds from other sources."
SECTION 6.6.(c) G.S. 143C‑6‑1(c) reads as rewritten:
"(c) Certification of the Budget. – The Director
of the Budget shall certify to each State agency the amount appropriated to it
for each program and each object from all governmental and proprietary
funds. funds included in the budget as defined in G.S. 143C‑3‑5.(d).
The certified budget for each State agency shall reflect the total of all
appropriations enacted for each State agency by the General Assembly in the
Current Operations Appropriations Act, the Capital Improvements Appropriations
Act, and any other act affecting the State budget. The certified budget for
each State agency shall follow the format of the Budget Support Document as
modified to reflect changes enacted by the General Assembly."
SECTION 6.6.(d) G.S. 143C‑6‑4 reads as rewritten:
"(a) Findings. – The General Assembly recognizes that even the most thorough budget deliberations may be affected by unforeseeable events. Under limited circumstances set forth in this section, the Director may adjust the enacted budget by making transfers among lines of expenditure, purposes, or programs or by increasing expenditures funded by departmental receipts. Under no circumstances, however, shall total General Fund expenditures for a State department exceed the amount appropriated to that department from the General Fund for the fiscal year.
(b) Adjustments to the Certified Budget. – Notwithstanding the provisions of G.S. 143C‑6‑1, a State agency may, with approval of the Director of the Budget, spend more than was authorized in the certified budget for all of the following:
(1) An object or line item within a purpose or program so long as the total amount expended for the purpose or program is no more than was authorized in the certified budget for the purpose or program.
(2) A purpose or program if the overexpenditure of the purpose or program is:
a. Required by a court or Industrial Commission order;
b. Authorized under G.S. 166A‑5(1)a.9. of the Emergency Management Act; or
c. Required to call out the National Guard.
(3) A purpose or program not subject to the provisions
of subdivision (b)(2) of this subsection, but only in accord with the following
restrictions: (i) the overexpenditure is required to continue the purpose or
programs due to complications or changes in circumstances that could not have
been foreseen when the budget for the fiscal period was enacted, (ii) the scope
of the purpose or program is not increased, and (iii) the
overexpenditure is authorized on a nonrecurring basis. , and (iv)
under no circumstances shall If the total requirements for a State
department exceed the department's certified budget for the fiscal year by more
than three percent (3%) the Director shall report the reasons for the
deviation to the Joint Legislative Commission on Governmental Operations within
30 days of the increase in budget. without prior consultation with the
Joint Legislative Commission on Governmental Operations.
(4) Notwithstanding subdivision (3) of this subsection, a State agency may redistribute salary reserve on a permanent basis to create new positions or provide salary increases or use departmental receipts that are recurring in nature to hire permanent receipt‑supported positions.
(c) Overexpenditures Reported. – The Director shall
report quarterly, beginning October 31, to the Joint Legislative Commission on
Governmental Operations on overexpenditures approved by the Director under
subdivisions (2) and (3) (2), (3), and (4) of subsection (b) of
this section.
(d) Overexpenditures in Senate Budget. – The President Pro Tempore of the Senate may approve expenditures for more than was authorized in the enacted budget for objects or line items in the budget of the Senate.
(e) Overexpenditures in House of Representatives Budget. – The Speaker of the House of Representatives may approve expenditures for more than was authorized in the enacted budget objects or line items in the budget of the House of Representatives.
(f) Transfers Between Line Items or Programs in General Assembly Budget Other Than Senate and House of Representatives. – Expenditures exceeding amounts authorized for programs, objects, or line items in the budget of the General Assembly other than those of the Senate and House of Representatives shall be approved jointly by the President Pro Tempore of the Senate and the Speaker of the House of Representatives.
(g) Transfers in The University of North Carolina Budget. – Transfers or changes within the budget of The University of North Carolina may be made as provided in Article 1 of Chapter 116 of the General Statutes.
(h) Transfers Within the Office of the Governor. – Transfers or changes as between objects or line items in the budget of the Office of the Governor may be made by the Governor."
SECTION 6.6.(e) G.S. 143C‑6‑21 reads as rewritten:
"§ 143C‑6‑21. Payments to nonprofits.
Except as otherwise provided by law, an annual appropriation
of one hundred thousand dollars ($100,000) or less to or for the use of a
nonprofit corporation shall may be made in a single annual
payment, in the discretion of the Director of the Budget. An annual
appropriation of more than one hundred thousand dollars ($100,000) to or for
the use of a nonprofit corporation shall be made in quarterly or monthly
payments, in the discretion of the Director of the Budget."
SECTION 6.6.(f) G.S. 143C‑8‑7 reads as rewritten:
"§ 143C‑8‑7. When a State agency may begin a capital improvement project.
(a) No State agency may expend funds for the construction or renovation of any capital improvement project except as needed to comply with this Article or otherwise authorized by the General Assembly. 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 agency or institution may be utilized for advanced planning through the working drawing phase of capital improvement projects, upon approval of the Director of the Budget.
(b) 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 any other non‑General Fund money available to the State agency or institution. Prior to authorizing the construction of a capital improvement project pursuant to this subsection, the Director shall consult with the Joint Legislative Commission on Governmental Operations."
SECTION 6.6.(g) G.S. 143C‑8‑12 reads as rewritten:
"§ 143C‑8‑12.
University system capital improvement projects from sources that are not
General Fund sources: approval of new project or that involve a
change in scope of existing project.
Notwithstanding any other provision of this Chapter, the
Director of the Budget may, upon request of the Board of Governors of The
University of North Carolina and after consultation with the Joint Legislative
Commission on Governmental Operations, approve: (i) expenditures to plan a
capital improvement project of The University of North Carolina the planning
for which is to be funded entirely with non‑General Fund money, (ii)
expenditures for a capital improvement project of The University of North
Carolina that is to be funded entirely with non‑General Fund money, or
(iii) a change in the scope of any previously approved capital improvement
project of The University of North Carolina provided that both the project and
change in scope are funded entirely with non‑General Fund money."
AMEND PRIOR CONSULTATION STATUTE
SECTION 6.8. G.S. 120‑76.1(b) reads as rewritten:
"(b) Any agency, board, commission, or other entity
required under G.S. 120‑76(8) or any other provision of law to
consult with the Commission prior to taking an action shall submit a detailed
report of the action under consideration to the Chairs of the Commission, the
Commission Assistant, and the Fiscal Research Division of the General Assembly.
If the Commission does not hold a meeting to hear the consultation within 90
30 days of receiving the submission of the detailed report, the
consultation requirement is satisfied. With regard to capital improvement
projects of The University of North Carolina, if the Commission does not hold a
meeting to hear the consultation within 30 days of receiving the submission of
the detailed report, the consultation requirement of G.S. 120‑76(8)e.
is satisfied."
REPEAL SPECIAL FUNDS CONSULTATION
SECTION 6.9. Section 6.6.B of Session Law 2009‑451 is repealed.
AMEND ARRA FUNDS
SECTION 6.9A. Section 6.6C.(b) of Session Law 2009‑451 reads as rewritten:
"SECTION 6.6C.(b) Appropriation of ARRA Funds. –
Funds received from ARRA grants and receipts not specified in this act are
hereby appropriated in the amounts provided in the notification of award from
the federal government or any entity acting on behalf of the federal government
to administer federal ARRA funds. Prior to allocation of funds not expressly
delineated in this act, the OSBM and affected state agencies shall consult
with report to the Joint Legislative Commission on Governmental
Operations. on ARRA grants received that are not expressly delineated
in this act."
DRIVER EDUCATION
SECTION 6.10.(a) The Highway Safety Research Center Institute of the University of North Carolina at Chapel Hill shall work in collaboration with the Department of Public Instruction and the Governor's Highway Safety Commission to create a standard curriculum to be used for the Driver Education Program in the Department of Public Instruction. The curriculum shall be ready for use in the school year beginning in the fall of 2011 and shall be used for all driver education programs funded with State funds.
SECTION 6.10.(b) The Office of State Budget and Management (OSBM) shall review the funding and efficacy of the Driver Education Program to determine the most appropriate source of funds to support the program and outcomes of the funding on student driving. The review shall include recommendations for improving services, reducing costs and/or duplication, and alternative funding mechanisms including fees. OSBM will also work with the Department of Public Instruction to establish performance measures for the program to be used to determine the program's effectiveness. OSBM shall make recommendations to the Governor and the General Assembly no later than November 1, 2010.
DEPARTMENT OF ADMINISTRATION TO IMPLEMENT PURCHASING STANDARDS FOR IMPROVING ENERGY EFFICIENCY
SECTION 6.11. G.S. 143‑64.12(b) reads as rewritten:
"(b) The Department of Administration shall develop and implement policies, procedures, and standards to ensure that State purchasing practices improve efficiency regarding energy, water, and other utility use and take the cost of the product over the economic life of the product into consideration. The Department of Administration shall adopt and implement Building Energy Design Guidelines. These guidelines shall include energy‑use goals and standards, economic assumptions for life‑cycle cost analysis, and other criteria on building systems and technologies. The Department of Administration shall modify the design criteria for construction and renovation of facilities of State buildings and State institutions of higher learning buildings to require that a life‑cycle cost analysis be conducted pursuant to G.S. 143‑64.15. For new or emerging energy‑use reducing technologies, where uncertainties about service life, costs, and/or potential cost savings may introduce uncertainty about the accuracy of life cycle cost analysis, the Department of Administration may require additional deterministic computations to aid in the evaluation life cycle cost analysis results."
PART VII. PUBLIC SCHOOLS
CHILDREN WITH DISABILITIES
SECTION 7.1. The State Board of Education shall allocate funds for children with disabilities on the basis of three thousand five hundred ninety‑eight dollars and fifty‑five cents ($3,598.55) per child. 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 2010‑2011 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 7.2. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of one thousand one hundred ninety‑two dollars and ninety cents ($1,192.90) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2010‑2011 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit. The dollar amounts allocated under this section for academically or intellectually gifted children shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve academically or intellectually gifted children.
ABCS OF PUBLIC EDUCATION
SECTION 7.3. Notwithstanding G.S. 115C‑105.36, the State Board of Education shall place a moratorium on financial awards paid to school personnel in the 2010‑2011 fiscal year based on 2009‑2010 student academic performance.
NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS ALLOTMENT FORMULA
SECTION 7.4.(a) Funds are appropriated in this act for the North Carolina Virtual Public School (NCVPS). Beginning with 2010‑2011 the State Board of Education shall allocate funds appropriated in this act to local school administrative units based on the NCVPS allotment formula developed pursuant to Section 7.16(d) of S. L. 2006‑66.
SECTION 7.4.(b) Section 7.9(f) of S. L. 2009‑451 is repealed.
STATE FISCAL STABILIZATION FUND APPROPRIATION
SECTION 7.5. In order to ensure compliance with the requirements of Title XIV of the American Recovery and Reinvestment Act of 2009 and notwithstanding any other provision of law, the Office of State Budget and Management shall adjust the State Fiscal Stabilization Fund appropriation amounts, including any associated budget reductions, between the State Public School Fund and The University of North Carolina budget to align with the requirements of the North Carolina State Fiscal Stabilization Fund application as amended for 2010‑2011.
MORE AT FOUR PROGRAM
SECTION 7.6.(a) The Department of Public Instruction shall continue the implementation of the More at Four prekindergarten program for four‑year‑olds who are at risk for school failure in all counties. The state prekindergarten program shall serve children who reach the age of four on or before August 31 of that school year and who meet eligibility criteria that indicate a child's risk for school failure. Prekindergarten classrooms shall be operated in public schools, Head Start programs, and licensed child care facilities that choose to participate under procedures defined by the Office of Early Learning within the Department of Public Instruction. All such classrooms shall be subject to the supervision of the Office of Early Learning and shall be operated in accordance with standards adopted by the State Board of Education.
SECTION 7.6.(b) The Office of Early Learning shall specify program standards and requirements addressing:
(1) early learning standards and curricula;
(2) teacher education and specialized training;
(3) teacher in‑service training and professional development;
(4) maximum class size;
(5) staff‑child ratio;
(6) screenings, referrals, and support services;
(7) meals; and
(8) monitoring of sites to demonstrate adherence to State programs standards.
SECTION 7.6.(c) The State Board of Education shall submit an annual report no later than March 15 of each year to the Joint Legislative Commission on Governmental Operations, the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Education, the House of Representatives Appropriations Subcommittee on Education, the Office of State Budget and Management, and the Fiscal Research Division. The report shall include the following:
(1) The number of children participating in State prekindergarten.
(2) The number of children participating in State prekindergarten 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 State prekindergarten expenditures for the programs and the source of the local contributions.
(4) The results of an annual evaluation of the program.
SECTION 7.6.(d) The Office of Early Learning shall establish income eligibility requirements for the program not to exceed seventy‑five percent (75%) of the State median income. Up to twenty percent (20%) of children enrolled may have family incomes in excess of seventy‑five percent (75%) of median income if they have other designated risk factors. Furthermore, any age‑eligible child of (i) an active duty member of the armed forces of the United States, including the North Carolina National Guard, State military forces, or a reserve component of the armed forces, who is ordered to active duty by the proper authority within the last 18 months or expected to be ordered within the next 18 months, or (ii) a member of the armed forces of the United States, including the North Carolina National Guard, State military forces, or a reserve component of the armed forces, who was injured or killed while serving on active duty, shall be eligible for the program.
SECTION 7.6.(e) The More at Four program funding shall not supplant any funding for classrooms serving four‑year‑olds as of the 2005‑2006 fiscal year. Support of existing four‑year‑old classrooms with More at Four program funding shall be permitted when current funding is eliminated, reduced, or redirected as required to meet other specified federal or State mandates.
SECTION 7.6.(f) The Office of Early Learning shall develop a new More at Four funding model to be implemented in the 2010‑2011 fiscal year. The per child funding rates shall be based on participating provider cost structures and shall require a contribution of local resources to support the full cost of providing high quality prekindergarten. The Office of Early Learning shall implement an administrative cap on More at Four program funding and shall establish parameters for allowable administrative costs.
LEADERSHIP ACADEMY
SECTION 7.7. Of the funds appropriated in this act to the Department of Public Instruction for the 2010‑2011 fiscal year, up to two hundred thousand dollars ($200,000) may be used to support a Leadership Academy that provides professional development to superintendents enabling them to train principals to address critical areas such as student achievement and teacher recruitment and retention.
PROTECT THE CLASSROOM WHILE MAXIMIZING FLEXIBILITY
SECTION 7.8.(a) Section 7.8(b) of S. L. 2009‑451 reads as rewritten:
"SECTION 7.8.(b) For fiscal years 2009‑2010
and 2010‑2011, local school administrative units shall make every
effort to reduce spending whenever and wherever such budget reductions are
appropriate with the goal of to protecting protect direct
classroom services. and services for students at risk and children
with special needs. Local school administrative units shall implement
administrative and other operating efficiencies prior to and minimize
the dismissal of classroom‑based personnel. Local school
administrative units shall maximize federal by maximizing funds
received from the including American Recovery and Reinvestment
Act of 2009 (ARRA), P.L. 111‑5; Keep Our Educators Working Act or any
other federal act which provides jobs funds; Individuals with Disabilities Act
(IDEA); Title I; and Title II funds. Local school administrative units must
designate all Title I‑eligible schools and must maximize attrition prior
to the dismissal of classroom‑based personnel. Notwithstanding G.S. 115C‑301
or any other law, local school administrative units shall have the maximum
flexibility to use allotted teacher positions to maximize student achievement
in grades 4‑12. Local school administrative units shall ensure
that the Aallocation of teachers, teacher assistants,
and class size requirements in grades K‑3 shall remain unchanged."
SECTION 7.8.(b) Section 7.8(d) of S. L. 2009‑451 reads as rewritten:
"SECTION 7.8.(d) Each unit shall report to the State Board of Education, the Office of State Budget and Management, and the Department of Public Instruction on the flexibility budget reductions it has identified for the unit, including an explanation of how administrative efficiencies, federal funds, and attrition have been maximized prior to the dismissal of classroom‑based personnel, within 30 days of the date this act becomes law."
DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.9.(a) Notwithstanding S. L. 2009‑451, the Department of Public Instruction shall eliminate 47 appropriation‑supported full‑time equivalent (FTE) positions. No receipt‑supported positions are required to be eliminated.
SECTION 7.9.(b) Section 7.14 of S. L. 2009‑451 is repealed.
SECTION 7.9.(c) The Department of Public Instruction shall review all federal funds, including those currently used for State‑level positions and contracts that are not a condition of receiving the federal funds. The Department shall reallocate these funds to local school administrative units whenever possible.
SECTION 7.9.(d) The Department shall report on the reallocation of these funds to local school administrative units, the Office of the Governor, and the Office of State Budget and Management no later than January 15, 2011.
WORKERS' COMPENSATION STUDY
SECTION 7.10.(a) The Office of State Budget and Management, in consultation with the Office of State Personnel and the Office of the State Controller, is directed to study the Workers' Compensation program in the North Carolina Department of Public Instruction and the North Carolina Community College System. The study and report shall contain analyses of the following items in comparison to states in the Southern Regional Education Board (SREB) region:
(1) Funding sources that support claims payments for locally employed public school and community college campus personnel, including claims payment analyses for state‑funded personnel;
(2) State policy and statutes regarding claims payment for local school and campus personnel;
(3) Number of school and campus claims, and the percent of claims to local eligible personnel;
(4) Strategies implemented to limit number of claims and to provide return‑to‑work incentives;
(5) Practices and duration of temporary total disability (TTD) payments, including percentage of TTD payments compared to all workers' compensation payments; and
(6) Policies related to collection of payments by local claimants once retirement eligibility is reached, and practices related to social security income offset to TTD claim payments.
SECTION 7.10.(b) The study and report shall also address the following issues related to Workers' Compensation statutes, policies, and practices specific to North Carolina public schools and community college campuses:
(1) Estimate of financial impact to local schools and campuses, including staffing costs if these entities were to partially or fully assume claims costs for State‑funded local personnel;
(2) Risks to schools and campuses associated with the ability to obtain workers' compensation insurance and to assume claims costs for State‑funded local personnel;
(3) Statutory and contract changes necessary to revise current claims payment practices in North Carolina;
(4) Listing of schools and community college campuses by number of claims as a percentage of eligible employees and by costs related to the percentage of eligible employees;
(5) Listing of all Local Education Agencies and campuses that have no return‑to‑work policies and strategies for implementing a return‑to‑work policy, including a requirement to follow the State return‑to‑work policy as a default;
(6) Practices/incentives currently used by SREB states but not currently implemented in North Carolina that could contribute to cost containment;
(7) Costs incurred by the State and by schools and campuses due to late claims‑reporting to the Third Party Administrator (TPA) by schools and campuses; and
(8) Potential cost containment opportunities with implementation of a cap on the duration of TTD payments.
SECTION 7.10.(c) A final report is due to the Office of State Budget and Management, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division no later than December 1, 2010.
CAREER AND COLLEGE‑READY, SET, GO!
SECTION 7.11.(a) The State Board of Education shall work with all member institutions of the Education Cabinet and the Joint Governing Boards to focus funding and program priorities to ensure that all North Carolina students graduate prepared to successfully pursue a career or further education. Each Education Cabinet Institution shall prioritize the Governor's Ready, Set, Go! Initiative and ensure that all students PK‑20:
(1) Are prepared to be successful in school and can successfully progress through PK‑20 education. This includes, but is not limited to:
a. Establishment of the Governor's Child Advocacy Council to increase ways for all children to come to school healthy and ready to learn;
b. Investment in early child development programs like Smart Start and More at Four;
c. Investment in smaller class sizes in K‑3;
d. Implementation of student diagnostics in grades K‑3 and 5 to ensure that all students at a minimum possess grade‑level reading, writing and math skills;
e. Implementation of student diagnostics for career and college readiness in grades 8 and 11 so students graduate prepared for work, college, or technical training; and
f. Implementation of the Student Learning Conditions Survey for grades 7, 9, and 11 that is aligned with the Teacher Working Conditions Survey.
(2) Receive clear standards and high expectations, and benefit from the best teachers and principals that can most effectively help students reach those standards. This includes, but is not limited to:
a. Adoption of the State‑led National Common Standards including Career and College Ready Skills and assessments that prepare students for the global economy;
b. Evaluation of Teacher Preparation programs to identify best practices and programs that produce effective teachers;
c. Increased access to virtual learning opportunities for students and teachers like those provided through the NC Virtual Public School;
d. Increased access to Science, Technology, Engineering and Mathematics (STEM) opportunities;
e. Development of leadership academies that recruit and prepare effective principals;
f. Development of a p/c‑20 data system to provide comprehensive information on students;
g. Reduction and eventual elimination of low–performing status in North Carolina schools; and
h. Job‑imbedded professional development for teachers and principals.
(3) Fully understand and complete the prerequisites for the career, certification, or degree of choice that promotes workforce success. This includes, but is not limited to:
a. Development of Academic boot camps for high school students who need additional support in reading, composition, and math;
b. Consolidation of high school transition courses to provide high school students with more college level or career and technical courses;
c. Increased access to virtual college level and specific career and technical courses for high school students;
d. Alignment between high school and college curricula so that all students are prepared for higher education work; and
e. Implementation of NCSuccess, a program designed to increase the number of certificates, associate or bachelor's degrees in higher education.
SECTION 7.11.(b) The Education Cabinet shall report by January 15, 2010, to the Office of the Governor, the Joint Governing Boards, and the Joint Education Oversight Committee on its progress toward reaching the Governor's goal that every North Carolina student will graduate ready to be successful in a career, a 2‑ or 4‑year college or technical training.
SCHOOL CONNECTIVITY INITIATIVE
SECTION 7.12. Section 7.12(a) of S.L. 2009‑451, as amended by Section 3E of S.L. 2009‑575, reads as rewritten:
"SECTION 7.12.(a) Up to three hundred fifty
thousand dollars ($350,000) may be transferred annually for this and
succeeding biennia to the Office of the Governor for NC Virtual (NCV)
within the Education Cabinet and for the Education E‑Learning Portal.
These funds shall be used to provide services to coordinate e‑learning
activities across all State educational agencies and to make the Education E‑Learning
Portal fully operational by December 1, 2009."
PART VIII. COMMUNITY COLLEGES
CARRYFORWARD OF COLLEGE INFORMATION SYSTEM FUNDS
SECTION 8.1.(a) Up to one million two hundred fifty thousand dollars ($1,250,000) of the funds appropriated in this act to the Community Colleges System Office for the College Information System shall not revert at the end of the 2009‑2010 fiscal year but shall remain available until expended. These funds may be used only to purchase periodic system upgrades.
SECTION 8.1.(b) Subsection (a) of this section becomes effective June 30, 2010.
ESTABLISH GED TESTING FEES
SECTION 8.2.(a) The State Board of Community Colleges shall assess an initial fee of fifteen dollars ($15.00) to students taking the General Education Development (GED) test. Students shall be charged an additional five dollars ($5.00) for each subsequent time they retake the test. These fees shall become effective August 15, 2010.
SECTION 8.2.(b) Effective July 1, 2011, G.S. 115D‑5(s) reads as rewritten:
"(s) (Effective July 1, 2011) The State Board of Community Colleges may establish, retain and budget fees charged to students taking the General Education Development (GED) test. Fees collected for this purpose shall be used only to (i) offset the costs of the GED test, including the cost of scoring the test, (ii) offset the costs of printing GED certificates, and (iii) meet federal and State reporting requirements related to the test."
SECTION 8.2.(c) The State Board of Community Colleges shall adopt rules implementing subsection (b) of this section. Such rules shall be in place before fees are increased.
RESTORE COMMUNITY REENTRY EDUCATION PROGRAMS
SECTION 8.3.(a) Section 8.11(e) of S. L. 2009‑451 is repealed, effective July 1, 2010.
SECTION 8.3.(b) Funding in this act restores funding only for Basic Skills and continuing education courses that ensure adequate literacy and job skills for inmates who will be released from incarceration and return to their communities. Funding is not restored for curriculum courses, and these courses will no longer generate State funding through budgeted FTE.
PERMIT TRANSFER OF EQUIPMENT TITLED TO THE STATE BOARD FROM ONE COMMUNITY COLLEGE TO ANOTHER
SECTION 8.4. G.S. 115D‑15(a) reads as rewritten:
"(a) The board of trustees of any institution organized under this Chapter may, with the prior approval of the North Carolina Community Colleges System Office, convey a right‑of‑way or easement for highway construction or for utility installations or modifications. When in the opinion of the board of trustees the use of any other real property owned or held by the board of trustees is unnecessary or undesirable for the purposes of the institution, the board of trustees, subject to prior approval of the State Board of Community Colleges, may sell, exchange, or lease the property. The board of trustees may dispose of any personal property owned or held by the board of trustees without approval of the State Board of Community Colleges. Personal property titled to the State Board of Community Colleges consistent with G.S. 115D‑14 and G.S. 115D‑58.5 may be transferred to another community college at no cost and without the approval of the State Board of Community Colleges or the Department of Administration, Division of Surplus Property.
Article 12 of Chapter 160A of the General Statutes shall apply to the disposal or sale of any real or personal property under this subsection. Personal property also may be disposed of under procedures adopted by the North Carolina Department of Administration. The proceeds of any sale or lease shall be used for capital outlay purposes, except as provided in subsection (b) of this section."
STUDENT SERVICES BUDGET REALIGNMENT
SECTION 8.5. It is the intent of the General Assembly to ensure that community colleges have the resources necessary to administer student services, especially in the area of financial aid. The State Board of Community Colleges shall realign formula funding by increasing formula funding for student services by thirty‑two million dollars ($32,000,000) and reducing formula funding for curriculum and continuing education instruction by a commensurate amount.
CARRYFORWARD FOR COMMUNITY COLLEGES EQUIPMENT
SECTION 8.6.(a) Subject to the approval of the Office of State Budget and Management and cash availability, the North Carolina Community College System Office may carry forward up to ten million dollars ($10,000,000) of the overrealized tuition and fees that were not reverted in fiscal year 2009‑2010 to be reallocated to the State Board of Community Colleges' Equipment Reserve Fund. These funds shall be distributed to colleges consistent with G.S. 115D‑31(e).
SECTION 8.6.(b) This section becomes effective June 30, 2010.
STATE AID BUDGET FLEXIBILITY
SECTION 8.7. G.S. 115D‑31 is amended by adding a new subsection to read:
"(b1) A local community college may use all State funds allocated to it, except for Literacy funds and Customized Training funds, 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."
MANAGEMENT FLEXIBILITY REDUCTION/COMMUNITY COLLEGES
SECTION 8.8. Section 8.24 of S.L. 2009‑451 reads as rewritten:
"SECTION 8.24. The management flexibility reduction for the North Carolina Community College System shall be allocated by the State Board of Community Colleges in a manner that accounts for the unique needs of each college and provides for the equitable distribution of funds to the institutions consistent with G.S. 115D‑5(a). Before taking reductions to instructional budgets, the community colleges shall consider reducing budgets for senior and middle management personnel and for programs that have both low‑enrollment and low‑postgraduate success. Colleges shall minimize the impact on student support services and on the retraining of dislocated workers. Colleges shall not reduce financial aid, equipment, or the Small Business Centers. The community colleges shall also review their institutional funds to determine whether there are monies available in those funds that can be used to assist with operating costs before taking reductions in instructional budgets."
CAREER AND COLLEGE PROMISE
SECTION 8.9.(a) The North Carolina Community College System (NCCCS) and The University of North Carolina shall develop the Career and College Promise program, a structured programmatic approach to allow high school students to take identified college courses that lead to seamless college and career readiness pathways. Career and College Promise shall establish a core program of courses that supports students' transition into secondary education and the workplace. The program shall eliminate duplication of community college and university offerings by delineating responsibilities for courses. The core program will consist of science, technology, engineering, and math (STEM courses), plus English, foreign language, and limited other core courses satisfying college general education requirements and the Comprehensive Articulation Agreement between the NCCCS and UNC.
SECTION 8.9.(b) Notwithstanding any other provision of law, Career and College Promise shall be implemented beginning with the spring semester of 2011.
SECTION 8.9.(c) The NC Community College System Office, the University of North Carolina General Administration, and the State Board of Education, shall study and develop a unified plan to provide access to college‑level courses to North Carolina high school students. The study shall determine the following:
(1) the types of courses to offer;
(2) the most efficient and cost‑effective method to offer those courses;
(3) the most appropriate entity to offer those courses;
(4) the most appropriate funding mechanism;
(5) the possibility of combining existing joint high school programs; and
(6) the fiscal impact of each recommendation or option.
The results of the study shall be provided by November 15, 2010, to the Office of the Governor, the chairs of the Appropriations and Education Committees of the House and Senate, the Fiscal Research Division, and the Office of State Budget and Management.
PART IX: UNIVERSITIES
UNC BOARD OF GOVERNORS REVIEW OF FACULTY RECRUITMENT AND RETENTION
SECTION 9.1. The Board of Governors of The University of North Carolina shall review its current policies regarding financial incentives to retain faculty. The review shall focus on the prioritization of Recruitment and Retention dollars and identification of key metrics to measure overall program effectiveness. The Board of Governors shall report its findings and recommendations for changes to the policies, if any, to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division by April 1, 2011.
CAMPUS‑INITIATED TUITION INCREASES
SECTION 9.2. Section 9.23(a) of S.L. 2009‑451 reads as rewritten:
"SECTION 9.23.(a) Notwithstanding any other
provision of law, no campus‑initiated tuition increase for students
who are North Carolina residents shall be approved by the Board of Governors of
The University of North Carolina or implemented for the 2010‑2011
academic year except as provided otherwise by this section.the campus‑initiated
tuition increases approved by the Board of Governors of The University of North
Carolina for the 2010‑2011 academic year may be implemented for the 2010‑2011
academic year."
REPORTING ON UNC SCHOOL OF THE ARTS HIGH SCHOOL INITIATIVE
SECTION 9.3.(a) The Board of Governors shall conduct a study on the high school program at the University of North Carolina School of the Arts (UNCSA). Information in the report should include, but is not to be limited to:
(1) Funding per high school student compared to average cost per student. Costs shall include faculty, educational supplies, meals provided by the State, residential and housing expenses, including residential staff and additional security requirements.
(2) Academic class size compared to average class size of neighboring public high schools and other comparable performing arts high schools across the nation.
(3) Composition of high school student body, including county of residence, family income level, school grade and academic achievement level, as measured by end‑of‑grade tests, upon entering the high school program.
(4) High school graduation statistics, including overall graduation rate, average number of years each graduate attended UNCSA High School, percentage of graduates who enter the UNCSA college program, percentage of graduates who enroll in a specialized performing arts school or a performing arts program at an institute of higher education.
SECTION 9.3.(b) The UNC Board of Governors shall submit the study to the Joint Legislative Education Oversight Committee, the Office of State Budget and Management, and the Fiscal Research Division no later than March 1, 2011.
PERMANENT TRANSFER OF FUNDING TO ROANOKE ISLAND COMMISSION FOR PERFORMING ARTS
SECTION 9.4. Section 9.4 of S.L. 2009‑451 reads as rewritten:
"SECTION 9.4. The General Assembly finds that in
order to expand opportunities for students involved in the performing arts,
existing funding for the Summer Institute on Roanoke Island should not be
allocated to one specific University of North Carolina institution but instead
be allocated directly to the Roanoke Island Commission, so that any interested
University of North Carolina institution may have the opportunity to
participate in summer arts enrichment and education programs. Therefore, of the
funds appropriated by this act to the Board of Governors of The University of
North Carolina and allocated to the Summer Institute of the University of North
Carolina School of the Arts on Roanoke Island program for the 2009‑2011
fiscal biennium, the sum of four hundred sixty‑one thousand six hundred
forty‑six dollars ($461,646) shall be transferred for the 2009‑2010
fiscal year to the Roanoke Island Commission, and the sum of four hundred
sixty‑one thousand six hundred forty‑six dollars ($461,646) shall
be transferred for the 2010‑2011 fiscal year to the Roanoke Island
Commission. recurring funds appropriated for the 2010‑2011 fiscal
year to the Board of Governors of The University of North Carolina and
allocated to the University of North Carolina School of the Arts for the Summer
Institute on Roanoke Island program, shall be permanently transferred to the
Department of Cultural Resources and allocated to the Roanoke Island
Commission. The amount to be transferred shall be equal to the amount of the
appropriation remaining after all reductions, prior to and included in this
act, are incorporated. The Roanoke Island Commission may use these funds to
contract with any of the constituent institutions of The University of North
Carolina System to provide music and drama students an education in a
professional performing environment while providing a public service to the
State. Any available funds may be used to contract with community‑based
or nonprofit performing arts groups or other performing arts groups supported
with State or local funds to provide music and drama on Roanoke Island."
HICKORY METRO HIGHER EDUCATION CENTER MERGER
SECTION 9.5. The Hickory Metro Higher Education Center shall be merged with the North Carolina Center for Engineering and Technology. The merged entity shall be referred to as the Hickory Metro Higher Education Center. The new Center shall be administered by the University of North Carolina (with Appalachian State University acting as fiscal agent for the Center). The new Center shall be housed at the current location of the North Carolina Center for Engineering and Technology, as soon as such facilities are prepared for that purpose.
REVIEW OF UNC SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS (STEM) PROGRAMS
SECTION 9.6.(a) In order to assess the effectiveness of University‑administered Science, Technology, Engineering and Mathematics (STEM) programs, The University of North Carolina General Administration shall compile a comprehensive list of programs within the University system whose primary objective is to provide community outreach in the form of (1) teacher professional development programs to strengthen the quality of science or mathematics instruction in the public schools; or (2) K‑12 student enrichment programs in the areas of science, technology, engineering or mathematics. At a minimum, the following programs shall be included:
(1) Pre‑College and Teacher Professional Development programs administered through the North Carolina Mathematics and Science Education Network (NC‑MSEN);
(2) Summer Ventures Program;
(3) North Carolina Central University Center for Science, Math and Technology Education;
(4) Fayetteville State University CHEER Summer Bridges; and
(5) NCSTEM Community Collaborative.
SECTION 9.6.(b) The University of North Carolina General Administration shall conduct an annual review of each of the identified programs and report the results to the Office of State Budget and Management and the Fiscal Research Division no later than September 30 of each year to assist with future funding decisions. The report shall contain the following information for each program:
(1) A description of the program mission, goals, and objectives.
(2) The statutory objectives for the program if applicable.
(3) Annual State appropriation and receipt funding for the program.
(4) Program effectiveness measures for Teacher Professional Development programs to include at a minimum:
a. A measure of teachers' classroom effectiveness in STEM areas before and after attending a university professional development program.
b. A measure of math and science educators retained as a result of attending a UNC professional development program.
(5) Program effectiveness measures for student enrichment programs to include at a minimum:
a. A measure of students' expected college and career aspirations before and after attending a STEM program.
b. A measure of students' math and science performance on standardized tests before and after attending a STEM program.
c. A measure of declared STEM majors within the UNC system who attended a UNC‑sponsored STEM program.
SECTION 9.6.(c) The University of North Carolina General Administration shall submit the list of STEM programs to the Office of State Budget and Management and the Fiscal Research Division by February 15, 2011. The annual reporting requirement is effective July 1, 2011.
SECTION 9.6.(d) In addition, the Department of Public Instruction shall survey math and science educators in North Carolina to identify the number of current math and science educators who attended a UNC sponsored Pre‑College or Summer Ventures program before entering college. The survey may be conducted in cooperation with ongoing data collection efforts within The University of North Carolina system. The data shall be reported to the Office of State Budget and Management and the Fiscal Research Division by February 15, 2011.
UNC MANAGEMENT FLEXIBILITY REDUCTION
SECTION 9.7. Section 9.19 of S.L. 2009‑451 reads as rewritten:
"SECTION 9.19. The management flexibility
reduction for The University of North Carolina shall not be allocated by the
Board of Governors to the constituent institutions and affiliated entities
using an across‑the‑board method but in a manner that recognizes
the importance of the academic mission and differences among The University of
North Carolina entities. Before taking reductions in instructional budgets,
the The Board of Governors and the campuses of the constituent
institutions shall consider reducing budgets for senior and middle management
personnel, centers and institutes, low enrollment degree programs, speaker
series, low‑performing or redundant programs, adjustments to faculty
workload, restructuring of research activities, programs or positions that can
be shifted to receipt‑support, and nonacademic activities. When
implementing personnel reductions, the Board of Governors and the campuses
shall make every effort to abolish vacant positions first. The Board of
Governors and the campuses of the constituent institutions also shall review
the institutional trust funds and the special funds held by or on behalf of the
The University of North Carolina and its constituent institutions to determine
whether there are monies available in those funds that can be used to assist
with operating costs before taking reductions in instructional budgets. In
addition, the campuses of the constituent institutions also shall require their
faculty to have a teaching workload at least equal to the national
average in their Carnegie classification. Budget reductions shall not be considered
in funding available for need‑based financial aid.aid, faculty
recruiting and retention, or the University of North Carolina School of the
Arts high school initiative."
TRANSFER OF A+ SCHOOLS FROM UNC GREENSBORO TO DEPARTMENT OF CULTURAL RESOURCES
SECTION 9.8. The A+ Schools program is transferred from the University of North Carolina at Greensboro to the North Carolina Arts Council in the Department of Cultural Resources, as if by a Type I transfer as defined in G.S. 143A‑6, with all the elements of such a transfer. The program transfer shall include the sum of fifty‑eight thousand six hundred thirty‑eight dollars ($58,638).
SHORTFALLS IN THE STATE CONTRACTUAL SCHOLARSHIP FUND
SECTION 9.9. In the event there are not sufficient funds in the State Contractual Scholarship Fund to provide each eligible student or licensure student with a full grant at the fixed rate as determined by the General Assembly, funds appropriated under the tuition grant program as defined in G.S. 116‑21.2 shall be available to meet the shortfall.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
CHILD CARE ALLOCATION FORMULA
SECTION 10.1. Section 10.2 of S.L. 2009‑451 reads as rewritten:
"SECTION 10.2.(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 to a county based upon the projected cost of serving children under age 11 in families with all parents working who earn less than seventy‑five percent (75%) of the State median income.
(2) No county's allocation shall be less than ninety percent (90%) of its State fiscal year 2001‑2002 initial child care subsidy allocation.
(3) The overall Smart Start child care subsidy allocation shall not be affected by a reduction in appropriations to the program. For 2010‑2011, the Smart Start subsidy allocation shall not fall below the level of 2009‑2010 expenditures.
"SECTION 10.2.(b) The Department of Health and Human Services may reallocate unused child care subsidy voucher funds in order to meet the child care needs of low‑income families. Any reallocation of funds shall be based upon the expenditures of all child care subsidy voucher funding, including Smart Start funds, within a county.
"SECTION 10.2.(c) Notwithstanding subsection (a) of this section, the Department of Health and Human Services shall allocate up to twenty million dollars ($20,000,000) in federal block grant funds and State funds appropriated for fiscal years 2009‑2010 and 2010‑2011 for child care services. These funds shall be allocated to prevent termination of child care services. Funds appropriated for specific purposes, including targeted market rate adjustments given in the past, may also be allocated by the Department separately from the allocation formula described in subsection (a) of this section."
ADMINISTRATIVE ALLOWANCE FOR COUNTY DEPARTMENTS OF SOCIAL SERVICES
SECTION 10.2. Section 10.10 of S.L. 2009‑451 reads as rewritten:
"SECTION 10.10. The Division of Child Development
of the Department of Health and Human Services shall increase decrease
the allowance that county departments of social services may use for
administrative costs from four percent (4%) five percent (5%) to five
percent (5%) four percent (4%) of the county's total child care
subsidy funds allocated in the Child Care Development Fund Block Grant plan.
The increase decrease shall be effective for the 2009‑2010
2010‑2011 fiscal year."
NC HEALTH CHOICE ENROLLMENT
SECTION 10.3. Section 10.34 of S.L. 2009‑451 reads as rewritten:
"SECTION 10.34. The Department of Health and
Human Services may, may expand enrollment in the NC Health Choice
Program for the 2009‑2010 2010‑2011 fiscal year, allow
enrollment to grow by not more than which is projected to reach 9,098
143,035 children.children by June 2011."
NCHC CHANGES
SECTION 10.4. Effective July 1, 2009, G.S. 108A‑70.21(b) reads as rewritten:
"(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 Predecessor Plan.
In addition to the benefits provided under the Predecessor Plan, the following services and supplies are covered under the Health Insurance Program for Children established under this Part:
(1) Oral examinations, teeth cleaning, and topical
fluoride treatments 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, sealants, extractions, other
than including impacted teeth teeth, or residual
roots and symptomatic wisdom teeth, therapeutic pulpotomies, space
maintainers, dentures and acrylic partial dentures, root canal therapy
for permanent anterior teeth and permanent first molars, prefabricated stainless
steel crowns, periodontal debridement, scaling and root planning and certain
periodontal surgery procedures (with limitations), inhalation of nitrous oxide,
and routine fillings of amalgam or other tooth colored filling material to
restore diseased teeth.
(1a) Orthognathic surgery or surgical exposure and bonding of impacted teeth to correct functionally impairing malocclusions when orthodontics was approved and initiated while the child was covered by Medicaid and the need for orthognathic surgery or surgical exposure and bonding of impacted teeth was documented in the orthodontic treatment plan.
(1b) Orthodontic services to children with malocclusions caused by severe craniofacial anomalies such as cleft lip and/or palate, hemifacial or craniofacial microsomia, Apert's syndrome, Crouzon's syndrome, Pierre Robin syndrome, or Treacher‑Collins syndrome, etc. The request for these services must be accompanied by medical documentation indicating that the preliminary diagnosis meets the specified criteria.
(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 NCHC recipients must
obtain optical services, supplies, and solutions must be obtained from
NCHC enrolled, licensed or certified ophthalmologists, optometrists, or optical
dispensing laboratories. opticians. In accordance with G.S. 148‑134,
NCHC providers must order complete eyeglasses, eyeglass lenses, and ophthalmic
frames through Nash Optical Plant. Eyeglass lenses are limited to NCHC‑approved
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 NCHC‑approved
frames made of zylonite, metal, or a combination of zylonite and metal. All
visual aids covered by this subsection require prior approval. Requests for
medically necessary complete eyeglasses, eyeglass lenses, and ophthalmic frames
outside of the NCHC‑approved selection require prior approval. Requests
for medically necessary fabrication of complete eyeglasses or eyeglass lenses
outside of Nash Optical Plant require prior approval. Upon prior approval
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 approved hearing aid specialist. Prior approval is required for hearing aids, accessories, earmolds, repairs, loaners, and rental aids.
(4) Over the counter medications: Selected over the counter medications provided the medication is covered under the State Medical Assistance Plan. Coverage shall be subject to the same policies and approvals as required under the Medicaid program.
(5) Routine diagnostic examinations and tests: annual routine diagnostic examinations and tests, including x‑rays, blood and blood pressure checks, urine tests, tuberculosis tests, and general health check‑ups that are medically necessary for the maintenance and improvement of individual health are covered.
No benefits are to be provided for services and materials under this subsection that do not meet the standards accepted by the American Dental Association.
The Department shall provide services to children enrolled in
the NC Health Choice Program through Community Care of North Carolina (CCNC)
and shall pay Community Care of North Carolina providers for these services
as allowed under Medicaid. the per member, per month fees for the
management of highly utilized services. The Department shall pay for these
services only if sufficient information is available to the Department for
utilization management of the services provided through CCNC."
NCHC ER VISIT CO‑PAYMENTS
SECTION 10.4A. NC Health Choice co‑pay for nonemergency ER visits for children in families with income at or below one hundred fifty percent (150%) of FPL is ten dollars ($10.00). Children in families between one hundred fifty‑one percent (151%) and two hundred percent (200%) FPL is twenty‑five dollars ($25.00).
COMMUNITY CARE EnHANCED PRIMARY CARE MANAGEMENT SYSTEM
SECTION 10.5.(a) Section 10.36 of S.L. 2009‑451 reads as rewritten:
"SECTION 10.36.(a) Given the primary
care case management foundation established by Community Care of North Carolina
(CCNC), the Department shall build upon that foundation to ensure quality care
and cost control of care provided to Medicaid patients.
"SECTION 10.36.(b) The Department shall
contract with CCNC participating physicians and local CCNC networks to manage
the care of Medicaid recipients through a per member per month reimbursement.
"SECTION 10.36.(c) The Department shall
ensure that, through CCNC participating physicians and networks, the Department
is striving to follow tenets adapted from the National Committee of Quality
Assurance's (NCQA) national measures for patient‑centered Medical Homes
Models. The Department shall consult with local CCNC networks to achieve all of
the following:
(1) Identify priority diseases, conditions,
and patients for care management.
(2) Develop, adopt, and implement protocols
for consistent and effective care management of those diseases, conditions, and
patients.
(3) Identify data elements necessary for
effective delivery and management of medical care and care management services.
(4) Develop and implement a system to
measure, analyze, and report clinical performance and service performance by physicians
and networks.
"SECTION 10.36.(d) Consistent with
subdivision (1) of subsection (c) of this section, the Department shall (i)
identify baseline data on priority diseases, conditions, patients, and
populations, and on physicians and networks; (ii) identify patient, physician,
and network performance measures, and (iii) develop and implement data systems
to gather, analyze, and report on those performance measures. The Department
shall begin work immediately to implement this subsection.
"SECTION 10.36.(e) 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 no later than December 31, 2009, on
the performance measures adopted pursuant to subsection (d) of this section.
Beginning July 1, 2010, and every six months thereafter, the Department shall
submit a 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 evaluating the performance of
each of the 14 CCNC Networks based on the performance measures adopted pursuant
to subsection (d) of this section.
"SECTION 10.36.(f) The Department shall conduct a
Request for Proposal process to solicit bids from qualified outside entities
with proven experience in conducting actuarial and health care studies and
evaluations to annually report on the Medicaid cost savings achieved by the
CCNC networks during a 12‑month period. Beginning December 31, 2010, March
1, 2010, and every year thereafter, the Department shall submit a report on
the Medicaid cost savings achieved by the CCNC networks, which shall include
children, adults, and the aged, blind, and disabled, 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 10.5.(b) By October 1, 2010, the Department of Health and Human Services (DHHS) and the Division of Medical Assistance (DMA) shall contract with North Carolina Community Care Networks, Inc., (NCCCN, Inc.) and the 14 participating local Community Care networks (CCNC) represented by NCCCN, Inc., to provide standardized clinical and budgetary coordination, oversight, and reporting for a statewide Enhanced Primary Care Management System for Medicaid enrollees.
The contract with NCCCN, Inc., shall build upon and expand the existing successful CCNC primary care case management model to include comprehensive statewide quantitative performance goals and deliverables which shall include, but are not limited to, the areas of (i) service utilization management, (ii) budget analytics, (iii) budget forecasting methodologies, (iv) quality of care analytics, (v) participant access measures, and (vi) predictable cost containment methodologies.
NCCCN, Inc., shall report quarterly to DHHS and the Office of State Budget and Management (OSBM) on the development of the Enhanced Primary Care Case Management System and its defined goals and deliverables as agreed upon in the contract. Effective July 1, 2010, NCCCN, Inc., shall begin reporting quarterly to the Secretary of DHHS, OSBM, 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 the progress and results of implementation of the quantitative, analytical, utilization, quality, cost containment, and access goals and deliverables set out in the contract.
SECTION 10.5.(c) By July 1, 2011, DHHS and OSBM shall assess the performance of NCCCN, Inc., and CCNC regarding the goals established in the contract. Based on this assessment, DHHS and DMA shall expand, cancel, or alter the contract with NCCN, Inc., and CCNC by October 1, 2011. Expansion or alteration of the contract may reflect refinements based on clearly identified goals and deliverables in the areas of (1) quality of care, (2) participant access, (3) cost containment, and (4) service delivery.
SECTION 10.5.(d) By July 1, 2011, DHHS, DMA, and NCCCN, Inc., shall finalize a comprehensive plan that establishes management methodologies including, but not limited to, (i) quality of care measures, (ii) utilization measures, (iii) recipient access measures, (iv) performance incentive models where past experience indicates a benefit from financial incentives, (v) accountable budget models, (vi) shared savings budget models, and (vii) budget forecasting analytics as agreed upon by DHHS, DMA, and NCCCN, Inc. In the development of these methodologies, DHHS, DMA, and NCCCN, Inc., shall consider options for shared risk.
DHHS and DMA shall provide assistance to NCCCN, Inc., in its endeavor to meet the objectives of this provision.
MEDICAID POLICY CHANGES
SECTION 10.6.(a) Section 10.58(d) of S.L. 2009‑451 reads as rewritten:
"SECTION 10.58.(d) Services and Payment Bases. – The Department shall spend funds appropriated for Medicaid services in accordance with the following schedule of services and payment bases. All services and payments are subject to the language at the end of this subsection. Unless otherwise provided, services and payment bases will be as prescribed in the State Plan as established by the Department of Health and Human Services and may be changed with the approval of the Director of the Budget.
(1) Hospital inpatient. – Payment for hospital inpatient services will be prescribed by 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. – 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.
(4) Physicians, certified nurse midwife services, certified registered nurse anesthetists, nurse practitioners. – Fee schedules as developed by the Department of Health and Human Services.
(5) Community Alternative Program, EPSDT Screens. – Payments in accordance with rate schedule developed by the Department of Health and Human Services.
(6) Home health and related services, durable medical equipment. – Payments according to reimbursement plans developed by the Department of Health and Human Services.
(7) Hearing aids. – Wholesale cost plus dispensing fee to provider.
(8) Rural health clinical services. – Provider‑based, reasonable cost, nonprovider‑based, single‑cost reimbursement rate per clinic visit.
(9) Family planning. – Negotiated rate for local health departments. For other providers see specific services, e.g., hospitals, physicians.
(10) Independent laboratory and X‑ray services. – Uniform fee schedules as developed by the Department of Health and Human Services.
(11) Ambulatory surgical centers.
(12) Private duty nursing, clinic services, prepaid health plans.
(13) Intermediate care facilities for the mentally retarded.
(14) Chiropractors, podiatrists, podiatrists
(treating individuals with diabetes or vascular disease only), optometrists,
dentists.
(15) Limitations on dental coverage. – Dental services shall be provided on a restricted basis in accordance with criteria adopted by the Department to implement this subsection. Adult dental services shall be limited to emergency services only.
(16) Medicare Buy‑In. – Social Security Administration premium.
(17) Ambulance services. – Uniform fee schedules as developed by the Department of Health and Human Services. Public ambulance providers will be reimbursed at cost.
(18) Optical supplies. – Payment for materials is made to a contractor in accordance with 42 C.F.R. § 431.54(d). Fees paid to dispensing providers are negotiated fees established by the State agency based on industry charges.
(19) Medicare crossover claims. – The Department shall apply Medicaid medical policy to Medicare claims for dually eligible recipients. The Department shall pay an amount up to the actual coinsurance or deductible or both, in accordance with the State Plan, as approved by the Department of Health and Human Services. The Department may disregard application of this policy in cases where application of the policy would adversely affect patient care.
(20) Physical therapy, occupational therapy, respiratory
therapy, and speech therapy. – Services for adults and EPSDT‑eligible
children. Adult physical therapy, occupational therapy, respiratory
therapy, and speech therapy have a maximum of three visits per year.
Reimbursement for these therapy services is not allowed when services are
provided at the same time as other home care Medicaid services. Payments
are to be made only to qualified providers at rates negotiated by the
Department of Health and Human Services.
(21) Personal care services. – Payment in accordance with the State Plan developed by the Department of Health and Human Services.
(22) Case management services. – Reimbursement in accordance with the availability of funds to be transferred within the Department of Health and Human Services.
(23) Hospice.
(24) Medically necessary prosthetics or orthotics. – In order to be eligible for reimbursement, providers must be licensed or certified by the occupational licensing board or the certification authority having authority over the provider's license or certification. Medically necessary prosthetics and orthotics are subject to prior approval and utilization review.
(25) Health insurance premiums.
(26) Medical care/other remedial care. – Services not covered elsewhere in this section include related services in schools; health professional services provided outside the clinic setting to meet maternal and infant health goals; and services to meet federal EPSDT mandates.
(27) Pregnancy‑related services. – Covered services for pregnant women shall include nutritional counseling, psychosocial counseling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses.
(28) Drugs. – Reimbursements. Reimbursements shall be available for prescription drugs as allowed by federal regulations plus a professional services fee per month, excluding refills for the same drug or generic equivalent during the same month. Payments for drugs are subject to the provisions of this subdivision or in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. Payment of the professional services fee shall be made in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. The professional services fee shall be five dollars and sixty cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per prescription for brand‑name drugs. Adjustments to the professional services fee shall be established by the General Assembly. In addition to the professional services fee, the Department may pay an enhanced fee for pharmacy services.
Limitations on quantity. – The
Department of Health and Human Services may establish authorizations,
limitations, and reviews for specific drugs, drug classes, brands, or quantities
in order to manage effectively the Medicaid pharmacy program, except that
the Department shall not impose limitations on brand‑name medications for
which there is a generic equivalent in cases where the prescriber has
determined, at the time the drug is prescribed, that the brand‑name drug
is medically necessary and has written on the prescription order the phrase "medically
necessary."program. The department may require prior authorization
on brand‑name drugs when "medically necessary" is written on
the prescription.
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 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 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. drugs
unless the trade or brand‑name drug can be dispensed at a lower cost to
the Medical Assistance Program. As used in this subsection, "brand
name" means the proprietary name the manufacturer places upon a drug
product or on its container, label, or wrapping at the time of packaging; and "established
name" has the same meaning as in section 502(e)(3) of the Federal Food,
Drug, and Cosmetic Act, as amended, 21 U.S.C. § 352(e)(3).
Prior authorization. – The
Department of Health and Human Services shall not impose prior authorization
requirements or other restrictions under the State Medical Assistance Program
on medications prescribed for Medicaid recipients for the treatment of (i)
mental illness, including, but not limited to, medications for schizophrenia,
bipolar disorder, major depressive disorder or (ii) HIV/AIDS, except
that the Department of Health and Human Services shall continually review
utilization of medications under the State Medical Assistance Program
prescribed for Medicaid recipients for the treatment of mental illness,
including, but not limited to, medications for schizophrenia, bipolar disorder,
or major depressive disorder. The Department may, however, with respect to
drugs to treat mental illnesses, develop guidelines and measures to ensure
appropriate usage of these medications, including FDA‑approved
indications and dosage levels. The Department of Health and Human
Services may also require retrospective clinical justification for
the use of multiple psychotropic drugs for a Medicaid patient. For individuals
18 years of age and under who are prescribed three or more psychotropic
medications, the Department shall implement clinical edits that target
inefficient, ineffective, or potentially harmful prescribing patterns. When such
patterns are identified, the Medical Director for the Division of Medical
Assistance and the Chief of Clinical Policy for the Division of Mental Health,
Developmental Disabilities, and Substance Abuse Services shall require a peer‑to‑peer
consultation with the target prescribers. Alternatives discussed during the
peer‑to‑peer consultations shall be based upon:
a. Evidence‑based criteria available regarding efficacy or safety of the covered treatments; and
b. Policy approval by a majority vote of the North Carolina Physicians Advisory Group (NCPAG).
The target prescriber has final decision‑making authority to determine which prescription drug to prescribe or refill.
(29) Other mental health services. – Unless otherwise covered by this section, coverage is limited to:
a. Services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) when provided in agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services and reimbursement is made in accordance with a State Plan developed by the Department of Health and Human Services not to exceed the upper limits established in federal regulations, and
b. For children eligible for EPSDT services provided by:
1. Licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, licensed clinical addictions specialists, and certified clinical supervisors, when Medicaid‑eligible children are referred by the Community Care of North Carolina primary care physician, a Medicaid‑enrolled psychiatrist, or the area mental health program or local management entity, and
2. Institutional providers of residential services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) for children and Psychiatric Residential Treatment Facility services that meet federal and State requirements as defined by the Department.
c. For Medicaid‑eligible adults, services provided by licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, and nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, certified clinical addictions specialists, and licensed clinical supervisors, Medicaid‑eligible adults may be self‑referred.
d. Payments made for services rendered in accordance with this subdivision shall be to qualified providers in accordance with approved policies and the State Plan. Nothing in sub‑subdivision b. or c. of this subdivision shall be interpreted to modify the scope of practice of any service provider, practitioner, or licensee, nor to modify or attenuate any collaboration or supervision requirement related to the professional activities of any service provider, practitioner, or licensee. Nothing in sub‑subdivision b. or c. of this subdivision shall be interpreted to require any private health insurer or health plan to make direct third‑party reimbursements or payments to any service provider, practitioner, or licensee.
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.
(30) Experimental or trial procedures. – Any procedure not recognized or approved by a nationally recognized professional specialty organization is not approved.
(31) Medicaid as secondary payer claims. – The Department shall apply Medicaid medical policy to recipients who have primary insurance other than Medicare, Medicare Advantage, and Medicaid. 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. The Department may disregard application of this policy in cases where application of the policy would adversely affect patient care."
SECTION 10.6.(b) Section 10.58(e) of S.L. 2009‑451 reads as rewritten:
"SECTION 10.58.(e) Provider Performance Bonds and Visits. –
(1) Subject to the provisions of this subdivision, the Department may require Medicaid‑enrolled providers to 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 require the purchase of a performance bond or the submission of an executed letter of credit or financial instrument as a condition of initial enrollment, reenrollment, or reinstatement if:
a. The provider fails to demonstrate financial viability,
b. The Department determines there is significant potential for fraud and abuse,
c. The Department otherwise finds it is in the best interest of the Medicaid program to do so.
The Department shall specify the circumstances under which a performance bond or executed letter of credit will be required.
(1a) The Department may waive or limit the requirements of this paragraph for individual Medicaid‑enrolled providers or for one or more classes of Medicaid‑enrolled providers based on the following:
a. The provider's or provider class's dollar amount of monthly billings to Medicaid.
b. The length of time an individual provider has been licensed, endorsed, certified, or accredited in this State to provide services.
c. The length of time an individual provider has been enrolled to provide Medicaid services in this State.
d. The provider's demonstrated ability to ensure adequate record keeping, staffing, and services.
e. The need to ensure adequate access to care.
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 shall provide to the affected provider written notice of the findings upon which its action is based and shall include the performance bond requirements and the conditions under which a waiver or limitation apply. The Department may adopt temporary rules in accordance with G.S. 150B‑21.1 as necessary to implement this provision.
(2) Reimbursement is available for up to 30 visits per
recipient per fiscal year for the following professional services: hospital
outpatient providers, physicians, nurse practitioners, nurse midwives,
clinics, health departments, optometrists, chiropractors, and podiatrists. The
Department of Health and Human Services shall adopt medical policies in
accordance with G.S. 108A‑54.2 to distribute the allowable number of
visits for each service or each group of services consistent with federal law.
In addition, the Department shall establish a threshold of some number of
visits for these services. The Department shall ensure that primary care
providers or the appropriate CCNC network are notified when a patient is
nearing the established threshold to facilitate care coordination and
intervention as needed.
Prenatal services, all EPSDT children, emergency room visits, and mental health visits subject to independent utilization review are exempt from the visit limitations contained in this subdivision. Subject to appropriate medical review, the Department may authorize exceptions when additional care is medically necessary. Routine or maintenance visits above the established visit limit will not be covered unless necessary to actively manage a life threatening disorder or as an alternative to more costly care options."
MEDICAID PREFERRED DRUG LIST
SECTION 10.7. Section 10.66(c) of S.L. 2009‑451 reads as rewritten:
"SECTION 10.66.(c) The Department, in consultation with the PAG, shall adopt and publish policies and procedures relating to the preferred drug list, including:
(1) Guidelines for the presentation and review of drugs for inclusion on the preferred drug list,
(2) The manner and frequency of audits of the preferred drug list for appropriateness of patient care and cost‑effectiveness,
(3) An appeals process for the resolution of disputes, and
(4) Such other policies and procedures as the Department deems necessary and appropriate.
The Department and the pharmaceutical and therapeutics
committee shall consider all therapeutic classes of prescription drugs for
inclusion on the preferred drug list, except medications for treatment of
human immunodeficiency virus or acquired immune deficiency syndrome shall not
be subject to consideration for inclusion on the preferred drug list.
The Department shall maintain an updated preferred drug list in electronic format and shall make the list available to the public on the Department's Internet Web site.
The Department shall: (i) enter into a multistate purchasing pool; (ii) negotiate directly with manufacturers or labelers; (iii) contract with a pharmacy benefit manager for negotiated discounts or rebates for all prescription drugs under the medical assistance program; or (iv) effectuate any combination of these options in order to achieve the lowest available price for such drugs under such program.
The Department may negotiate supplemental rebates from manufacturers that are in addition to those required by Title XIX of the federal Social Security Act. The committee shall consider a product for inclusion on the preferred drug list if the manufacturer provides a supplemental rebate. The Department may procure a sole source contract with an outside entity or contractor to conduct negotiations for supplemental rebates."
ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE
SECTION 10.7A. Section 10.64(b) of S.L. 2009‑451 reads as rewritten:
"SECTION 10.64.(b) For the 2009‑2010 fiscal
year, the Department of Health and Human Services shall deposit from its
revenues one hundred twenty‑four million nine hundred ninety‑four
thousand nine hundred fifty‑four dollars ($124,994,954) with the
Department of State Treasurer to be accounted for as nontax revenue. For the
2010‑2011 fiscal year, the Department of Health and Human Services shall
deposit from its revenues one hundred million dollars ($100,000,000) one
hundred thirty‑five million dollars ($135,000,000) with the
Department of State Treasurer to be accounted for as nontax revenue. These
deposits shall represent the return of General Fund appropriations provided to
the Department of Health and Human Services to provide indigent care services
at State‑owned and operated mental hospitals. The treatment of any
revenue derived from federal programs shall be in accordance with the
requirements specified in the Code of Federal Regulations, Volume 2, Part 225."
AUTHORIZE THE DIVISION OF MEDICAL ASSISTANCE TO TAKE CERTAIN STEPS TO EFFECTUATE COMPLIANCE WITH BUDGET REDUCTIONS IN THE MEDICAID PROGRAM
SECTION 10.8.(a) Section 10.68A(a) of S.L. 2009‑451 reads as rewritten:
"SECTION 10.68A.(a) For the purpose of enabling the Department of Health and Human Services, Division of Medical Assistance, to achieve the budget reductions enacted in this act for the Medicaid program, the Department may take the following actions, notwithstanding any other provision of this act or other State law or rule to the contrary and subject to the requirements of subsection (e) of this section:
…
(3) Medicaid Personal Care Service provision.
– Upon the enactment of this act, the Division of Medical Assistance
shall implement the following new criteria for personal care services (PCS):
a. Independent assessment by an entity that
does not provide direct PCS services for evaluation of the recipient prior to
initiation of service. The independent assessment will determine the qualifying
Activities of Daily Living (ADL), the level of assistance required, and the
amount and scope of PCS to be provided, according to policy criteria.
b. Independent assessment or review from the
assigned Community Care of North Carolina (CCNC) physician of the continued
qualification for PCS services under the revised PCS policy criteria.
c. Establishment of time limits on physician
service orders and reauthorization in accordance with the recipient's diagnosis
and acuity of need.
d. Add the following items to the list of
tasks that are not covered by this service: nonmedical transportation, errands
and shopping, money management, cueing, and prompting, guiding, or coaching.
e. Online physician attestation of medical
necessity.
f. If sufficient reduction in cost is not
achieved with the revised policy, the Secretary shall direct the Division of
Medical Assistance to further modify the policy to achieve targeted cost
savings.
Recipients currently receiving PCS
services shall be reviewed under the above criteria, and those recipients not
meeting the new criteria shall be terminated from the service within 30 days of
the review. The Department shall review usage of personal care services in
adult care homes to determine if overuse is occurring and shall report its
findings 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 December 1, 2009.
(3) Medicaid Personal Care Service Provision. – The Department of Health and Human Services, Division of Medical Assistance, shall affect the reform of the Personal Care Services (PCS) and Personal Care Services‑Plus (PCS‑Plus) programs provided under the State Medicaid Plan as follows:
a. Terminate all services provided under these two PCS programs and implement two new PCS programs, PCS‑C and PCS‑ADE effective on January 1, 2011, or when approval is received from CMS.
b. Determine the most effective and efficient means for Medicaid to manage the cost, quality, and utilization of personal care services through one of the available funding options, including revised Medicaid plan optional services, a §1915(c) home and community‑based services (HCBS) waiver, or through a §1915(i) option that allows states to establish home and community‑based services that can target specific populations.
c. Submit to CMS applications or State plan amendments as required to obtain approval for two PCS programs as follows:
1. PCS for Children (PCS‑C) to assist families to meet their needs for personal care assistance for children, including individuals under the age of 21 receiving comprehensive and preventive child health services through the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) program.
2. PCS for Disabled and Elderly (PCS‑ADE) to meet the needs of individuals 21 years of age or older who, because of a medical condition, disability, or cognitive impairment, demonstrate extensive or higher levels of unmet needs for assistance in at least three of the five activities of daily living (ADLs) that include eating, dressing, bathing, toileting, and mobility. PCS‑ADE shall target individuals at the highest level of need who are able to safely remain in the home and who do not meet the State's criteria for nursing facility placement.
d. Establish program limitations:
1. PCS for Children shall be limited to 60 hours of service per month, unless additional services are required to correct or ameliorate defects and physical and mental illnesses and conditions as defined in 42 U.S.C. § 1396d(r)(5) in accordance with a plan of care approved by DMA or its designee.
2. PCS for Disabled and Elderly up to 80 hours of service per month in accordance with a plan of care approved by DMA or its designee.
e. For both programs, require that:
1. Services are provided in a manner that supplements not supplants family roles and responsibilities and care provided by informal caregivers.
2. Prior to admission to PCS, the recipient be seen by his or her primary or attending physician and that the recipient's physician authorizes referral for PCS in writing and attests to the medical necessity for PCS. The Department of Health and Human Services shall track and analyze from the written referrals to detect and address overutilization of PCS services.
3. Initial assessments and continuing need reassessments be performed by an Independent Assessment Entity (IAE) that is not a PCS service provider.
4. The IAE authorize the amount of service to be provided on a "needs basis," as determined by each recipient's degree of functional disability and level of unmet needs for hands‑on personal assistance in the five qualifying ADLs.
5. PCS shall not be used to perform household chores not directly related to the qualifying ADLs, nonmedical transportation, money management, running errands and shopping, and nonhands‑on assistance such as cueing, prompting, guiding, or coaching in accordance with the Medicaid Clinical Coverage Policy for each program.
6. Transition qualified recipients into the programs at such time that all approvals from CMS have been obtained; Medicaid Clinical Coverage Policies have been posted, reviewed, and approved as required; and all appropriate implementation tasks have been completed.
…
(5) Community Support and other MH/DD/SA services. – The Department of Health and Human Services shall transition community support child and adult, individual and group services to other defined services on or before June 30, 2010. The Division of Medical Assistance and the Division of MH/DD/SA shall take the steps necessary for the Medicaid and the State‑funded community support program to provide for transition and discharge planning to recipients currently receiving community support services. The following shall occur:
a. The Department shall submit to CMS: (i) revised
service definitions that separate case management functions from the Community
Support definition and (ii) a new service definition for peer support services
for adults with mental illness and/or substance abuse disorders.disorders,
for implementation no sooner than January 1, 2011.
…
(11) For the purpose of promoting cost‑effective utilization of outpatient mental health services for children, the Division of Medical Assistance shall require prior authorization for services following the 16th visit.
(12) Medicaid Private Duty Nursing (PDN) Provision. – The Department of Health and Human Services, Division of Medical Assistance, shall affect the following changes in the Medicaid Private Duty Nursing Program provided under the State Medicaid Plan:
a. Restructure the current PDN Program to provide services that are:
1. Provided only to qualified recipients under the age of 21;
2. Authorized by the recipient's primary care or attending physician;
3. Limited to 16 hours of service per day, unless additional services are required to correct or ameliorate defects and physical and mental illnesses and conditions as defined in 42 U.S.C. § 1396d(r)(5);
4. Approved based on an initial assessment and continuing need reassessments performed by an Independent Assessment Entity (IAE) that does not provide PDN services and authorized in amounts that are medically necessary based on the recipient's medical condition, amount of family assistance available, and other relevant conditions and circumstances, as defined by the Medicaid Clinical Coverage Policy for this service.
5. Provided in accordance with a plan of care approved by DMA or its designee.
b. Develop and submit to CMA a § 1915(c) Home and Community‑Based Services Waiver for individuals dependent on technology to substitute for a vital body function.
c. Once approved by CMS and upon approval of the Medicaid Clinical Coverage Policy, transition all qualified recipients age 21 and older currently receiving PDN to waiver services provided under the Technology Dependent Waiver."
SECTION 10.8.(b) Section 10.68A(c) of S.L 2009‑451 reads as rewritten:
"SECTION 10.68A.(c) At least 30 days prior to the adoption of new or amended medical coverage policies necessitated by the reductions to the Medicaid program enacted in this act, the Department shall:
(1) Publish the proposed new or amended medical coverage policies via the Medicaid Bulletin published on the Department's Web site, which shall include an invitation to readers to send written comments on the proposed new or amended policies to the Department's mailing address, including e‑mail.
(2) Notify via direct mail the members of the Physician Advisory Group (PAG) of the proposed policies.
(3) Update the policies published on the Web site to reflect any changes made as a result of written comments received from the PAG and others.
(4) Provide At least 10 days prior to the
adoption of new or amended medical coverage policies, the Department shall
provide written notice to recipients about changes in policy."
SPECIALTY DRUG PROVIDER NETWORK
SECTION 10.9. The Department of Health and Human Services shall create a specialty drug provider network that requires best practices, prevents overutilization and allows for drug reimbursement rate negotiations for hemophilia, hepatitis C, and IVIG drugs.
MEDICAID WAIVER FOR ASSISTED LIVING
SECTION 10.10. The Division of Medical Assistance shall develop and implement a 1915(c) Home and Community Based Services assisted living waiver in order to continue Medicaid funding of personal care services to individuals in adult care homes. All adult care home residents who receive State‑County Special Assistance and meet the criteria for nursing facility level of care will be eligible for participation in the waiver. Waiver services will be delivered according to the acuity level of adult care home residents. The Division of Medical Assistance shall develop a new Medicaid payment methodology for waiver services that is associated with the acuity‑based service delivery model. Implementation of the assisted living waiver is contingent upon approval by the Centers for Medicare and Medicaid Services.
STATEWIDE EXPANSION OF CAPITATED 1915(b)/(c) BEHAVORIAL HEALTH WAIVERS
SECTION 10.11. The Division of Medical Assistance shall initiate statewide expansion of the capitated 1915(b)/(c) waivers which have been operating in the Piedmont Behavioral Healthcare (PBH) LME as a demonstration program since April 2005. Additional LMEs shall be added to the waiver program as they demonstrate readiness to participate through a request for proposal process. The waiver program shall include all Medicaid‑covered mental health, developmental disabilities, and substance abuse services. Expansion of the waiver to additional LMEs shall be contingent upon approval by the Centers for Medicare and Medicaid Services.
STUDY MEDICAID PROVIDER RATES
SECTION 10.13.(a) The Department of Health and Human Services, Division of Medical Assistance, shall initiate a study or contract out for a study of reimbursement rates for Medicaid providers and program benefits. The study shall provide: (i) a comparison of Medicaid reimbursement rates in NC, its surrounding states, and two additional states, and (ii) a comparison of NC's Medicaid program benefits with our surrounding states and two additional states. Selected provider rates shall be studied for the initial report.
SECTION 10.13.(b) The Department shall report its initial findings to the Governor, 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 April 1, 2011.
SECTION 10.13.(c) Funds appropriated to the Department of Health and Human Services may be used to complete this study.
MEDICAID PREFERRED DRUG LIST (PDL) POLICY REVIEW PANEL
SECTION 10.14.(a) The Secretary of the Department of Health and Human Services shall establish a Preferred Drug List (PDL) Policy Review Panel within 60 days of enactment of this bill. The purpose of the PDL Policy Review Panel is to review the Medicaid PDL recommendations from the Department of Health and Human Services, Division of Medical Assistance and the Physician Advisory Group (PAG) Pharmacy and Therapeutics (P&T) Committee.
SECTION 10.14.(b) The Secretary shall appoint the following individuals to the review panel:
(1) The Division of Medical Assistance Director of Pharmacy;
(2) A representative from PAG's P&T Committee;
(3) A representative from the Old North State Medical Society;
(4) A representative from the NC Association of Pharmacist;
(5) A representative from Community Care of North Carolina; and
(6) A representative from the NC Psychiatric Association.
Each representative, excluding the Division's Director of Pharmacy, shall have two‑year appointments.
SECTION 10.14.(c) After the recommended policies related to the Medicaid PDL are posted, about 30 days after the posting, the review panel shall have an open meeting to review the recommendation from the PAG P&T Committee along with written public comment received as a result of the posting. In addition, the review panel shall provide an opportunity for public comment at the meeting. The review panel will then make policy recommendations to the Division.
MEDICAID FRAUD PREVENTION
SECTION 10.15.(a) The General Assembly finds that Medicaid fraud costs the State an inordinate amount of money and preventing the fraud before it occurs is in the best interests of the State. The Department of Health and Human Services is authorized to create a fraud prevention program that uses information from State and private databases to develop a fraud risk analysis of Medicaid providers and recipients. This analysis would be used to prevent fraud before it takes place and to achieve cost avoidance savings. While it is the intent that this initiative allow broad new access to information and databases across State government, the plan shall comply with all necessary security measures and restrictions to ensure that access to any specific information held confidential under federal and State law shall be limited to authorized persons.
SECTION 10.15.(b) Notwithstanding any other provision of law to the contrary, the Department may propose to modify or extend existing contracts or as necessary propose sole source contracts to timely achieve the Medicaid fraud prevention savings. Any such modifications or contract extensions or sole source contracts proposed by the Department must be reviewed and approved by the Secretary of the Department of Administration and reported to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Fiscal Research Division, and the Office of State Budget and Management.
SECTION 10.15.(c) The Department shall report on the activities conducted under this section to the House 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, 2011.
Section 10.15.(d) This authority expires one year from enactment of this bill.
COMMUNITY HEALTH CENTER CHANGES
SECTION 10.16. Section 10.37 of S.L. 2009‑451 reads as rewritten:
"SECTION 10.37. Of the funds appropriated in this
act for Community Health Grants, the sum of six million eight hundred sixty
thousand dollars ($6,860,000) in recurring funds for the 2009‑2010 fiscal
year and the sum of five million eight hundred nine thousand two hundred
twenty‑five dollars ($5,809,225)six million eight hundred sixty
thousand dollars ($6,860,000) for the 2010‑2011 fiscal year shall be
allocated as grants on a competitive basis to rural health centers, free
clinics, public health departments, school‑based health centers, federally
qualified health centers, and other nonprofit organizations that provide
primary medical and dental care, behavioral health, and
preventive health services to uninsured and indigent persons."
MEDICAID MANAGEMENT INFORMATION SYSTEM (MMIS) FUNDS/IMPLEMENTATION OF MMIS
SECTION 10.17. Section 10.41 of S.L. 2009‑451 is rewritten as follows:
"SECTION 10.41.(a) Of the funds appropriated in
this act to the Department of Health and Human Services (Department), the sum
of ten million seven hundred sixty‑five thousand one hundred fifty‑three
dollars ($10,765,153) for fiscal year 2009‑2010 and eleven million
seven hundred thirty‑seven thousand four hundred fourteen dollars
($11,737,414) the sum of eight million sixty‑four thousand one
hundred twenty‑eight dollars ($8,064,128) for fiscal year 2010‑2011
shall be (i) deposited to the Department's information technology budget code
and (ii) used to match federal funds for the procurement, design, development,
and implementation of the new Medicaid Management Information System (MMIS) and
to fund the central management of the project. The Department shall utilize all
prior year earned revenues received for the MMIS. In the event that the
Department does not receive prior year earned revenues in the amounts
authorized by this section, the Department is authorized, with approval of the
Office of State Budget and Management, to utilize other overrealized receipts
and funds appropriated to the Department to achieve the level of funding
specified in this section for the MMIS.
"SECTION 10.41.(b) The Department shall make full development of the replacement MMIS a top priority. During the development and implementation of MMIS, the Department shall develop plans to ensure the timely and effective implementation of enhancements to the system to provide the following capabilities:
(1) Receiving and tracking premiums or other payments required by law.
(2) Compatibility with the administration of the Health Information System.
The Department shall make every effort to expedite the implementation of the enhancements. The Office of Information Technology Services shall work in cooperation with the Department to ensure the timely and effective implementation of the MMIS and enhancements. The contract between the Department and the contract vendor shall contain an explicit provision requiring that the MMIS have the capability to fully implement the administration of NC Health Choice, NC Kids' Care, Ticket to Work, Families Pay Part of the Cost of Services under the CAP‑MR/DD, CAP Children's Program, and all relevant Medicaid waivers and the Medicare 646 waiver as it applies to Medicaid eligibles. The Department must have detailed cost information for each requirement before signing the contract. Any contract between the Department and a vendor for the MMIS that does not contain the explicit provision required under this subsection is void on its face. Notwithstanding any other provision of law to the contrary, the Secretary of the Department does not have the authority to sign a contract for the MMIS if the contract does not contain the explicit provision required under this section.
"SECTION 10.41.(c) Notwithstanding G.S. 114‑2.3, the Department shall engage the services of private counsel with the pertinent information technology and computer law expertise to review requests for proposals and to negotiate and review contracts associated with MMIS. The counsel engaged by the Department shall review the MMIS contract between the Department and the vendor to ensure that the requirements of subsection (a) of this section are met in their entirety.
"SECTION 10.41.(d) The Department shall develop a comprehensive schedule for the development and implementation of the MMIS that fully incorporates federal and State project management and review requirements. The Department shall ensure that the schedule is as accurate as possible. Any changes to the design, development, and implementation schedule shall be reported as part of the Department's quarterly MMIS reporting requirements. The Department shall submit the schedule to the Chairs of the House of Representatives Committee on Appropriations and the House of Representatives Subcommittee on Health and Human Services, the Chairs of the Senate Committee on Appropriations and the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division. Any change to key milestones in either schedule shall be immediately reported to the Chairs of the House of Representatives Committee on Appropriations and the House of Representatives Subcommittee on Health and Human Services, the Chairs of the Senate Committee on Appropriations and the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division with a full explanation of the reason for the change.
"SECTION 10.41.(e) Beginning July 1, 2009, the Department shall make quarterly reports on changes in the functionality and projected costs of the MMIS. The first quarterly submission shall contain a final report on the contract award to include total costs and functionality of the MMIS. Each report shall be made to the Chairs of the House of Representatives Committee on Appropriations and the House of Representatives Subcommittee on Health and Human Services, the Chairs of the Senate Committee on Appropriations and the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division. A copy of the final report on the contract award also shall be submitted to the Joint Legislative Commission on Governmental Operations.
"SECTION 10.41.(f) Upon initiation of the NC MMIS Program Reporting and Analytics Project and the Division of Health Services Regulation Project, the Department shall submit all reports regarding functionality, schedule, and cost in the next regular cycle of reporting identified in subsections (d) and (e) of this section. The Department shall ensure that the solution developed in the Reporting and Analytics Project supports the capability, in its initial implementation, to interface with the North Carolina Teachers' and State Employees' Health Plan. The costs for this capability shall be negotiated prior to the award of the Reporting and Analytics Project contract. The Reporting and Analytics Project solution must be completed simultaneously with the replacement MMIS."
ELIMINATE STATE FUNDING FOR CHILD SUPPORT OFFICES
SECTION 10.18. Section 10.46A of S.L. 2009‑451 reads as rewritten:
"SECTION 10.46A.(a) G.S. 110‑141 reads as rewritten:
"§ 110‑141. Effectuation of Intent of Article.
The North Carolina Department of Health and Human Services shall supervise the administration of the program in accordance with federal law and shall cause the provisions of this Article to be effectuated and to secure child support from absent, deserting, abandoning and non‑supporting parents.
Effective July 1, 2010, each child support enforcement program being administered by the Department of Health and Human Services on behalf of counties shall be administered, or the administration provided for, by the board of county commissioners of those counties. Until July 1, 2010, it shall be the responsibility of the Department of Health and Human Services to administer or provide for the administration of the program in those counties.
A county may negotiate alternative arrangements to the procedure outlined in G.S. 110‑130 for designating a local person or agency to administer the provisions of this Article in that county."
"SECTION 10.46A.(b) Counties affected by this section shall submit plans to the Department of Health and Human Services, Division of Social Services, no later than January 1, 2010, outlining the proposed operation of child support enforcement programs. The Division shall establish the criteria to be included within county plans for operations and review submitted plans to ensure the appropriate transitioning of administrative and programmatic responsibility.
"SECTION 10.46A.(c) Notwithstanding G.S. 143‑64.03 and G.S. 143‑64.05, the Secretary of Department of Health and Human Services may transfer at no cost to county governments or the Eastern Band of the Cherokee Indians for the sole purpose of facilitating their administration of the child support program no later than July 1, 2010, State‑owned equipment, including, but not limited to, computers, printers, and furniture that is being used by State‑operated child support offices to administer the program. The county government or the Eastern Band of the Cherokee Indians assuming responsibility for the child support program effective July 1, 2010, shall identify from the existing equipment and office furnishing which items their agency will need to administer the child support program. A comprehensive list of items to be transferred shall be compiled and signed by the manager of the State‑operated child support office and the manager of the county or tribal child support office, and the list will serve as official documentation of the transfer. Copies of such documentation shall be provided to the DHHS Controller's Office and the Department of Administration."
TANF BENEFIT IMPLEMENTATION
SECTION 10.19. Section 10.51 of S.L. 2009‑451 reads as rewritten:
"SECTION 10.51.(a) The General Assembly approves
the plan titled "North Carolina Temporary Assistance for Needy Families
State Plan FY 2009‑20112010‑2012," prepared by
the Department of Health and Human Services and presented to the General
Assembly. The North Carolina Temporary Assistance for Needy Families State Plan
covers the period October 1, 20092010, through September 30,
20112012. 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
2009 General Assembly.
"SECTION 10.51.(b) The counties approved as
Electing Counties in the North Carolina Temporary Assistance for Needy Families
State Plan FY 2009‑20112010‑2012, as approved by this
section are: Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and Wilson.
"SECTION 10.51.(c) 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 2009 through
2011, pursuant to G.S. 108A‑27(e), shall operate under the Electing
County budget requirements effective July 1, 2009. For programmatic purposes,
all counties referred to in this subsection shall remain under their current
county designation through September 30, 20092012.
"SECTION 10.51.(d) For the 2009‑2010
fiscal year, Electing Counties shall be held harmless to their Work First
Family Assistance allocations for the 2008‑2009 fiscal year, provided
that remaining funds allocated for Work First Family Assistance and Work First
Diversion Assistance are sufficient for payments made by the Department on
behalf of Standard Counties pursuant to G.S. 108‑27.11(b).
"SECTION 10.51.(e) In the event that
Departmental projections of Work First Family Assistance and Work First
Diversion Assistance for the 2009‑2010 fiscal year indicate that
remaining funds are insufficient for Work First Family Assistance and Work
First Diversion Assistance payments to be made on behalf of Standard Counties,
the Department is authorized to deallocate funds, of those allocated to
Electing Counties for Work First Family Assistance in excess of the sums set
forth in G.S. 108A‑27.11, up to the requisite amount for payments in
Standard Counties. Prior to deallocation, the Department shall obtain approval
by the Office of State Budget and Management. If the Department adjusts the
allocation set forth in subsection (d) of this section, then a report shall be
made to the Joint Legislative Commission on Governmental Operations, 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."
JAILS AND DETENTION PROGRAM RECEIPT‑SUPPORTED
SECTION 10.20. G.S. 153A‑222 reads as rewritten:
"§ 153A‑222. Inspections of local confinement facilities.
Department personnel shall visit and inspect each local confinement facility at least semiannually. The Department shall charge each local confinement facility a nonrefundable annual inspection fee of four hundred twenty dollars ($420.00) plus a nonrefundable annual per‑bed fee of seventeen dollars and fifty cents ($17.50). Assessed fees shall be as of July 1 of each year and shall be based on the number of local confinement facilities and beds in operation on the date due. The purpose of the inspections is to investigate the conditions of confinement, the treatment of prisoners, the maintenance of entry level employment standards for jailers and supervisory and administrative personnel of local confinement facilities as provided for in G.S. 153A‑216(4), and to determine whether the facilities meet the minimum standards published pursuant to G.S. 153A‑221. The inspector shall make a written report of each inspection and submit it within 30 days after the day the inspection is completed to the governing body and other local officials responsible for the facility. The report shall specify each way in which the facility does not meet the minimum standards. The governing body shall consider the report at its first regular meeting after receipt of the report and shall promptly initiate any action necessary to bring the facility into conformity with the standards. Notwithstanding the provisions of G.S. 8‑53 or any other provision of law relating to the confidentiality of communications between physician and patient, the representatives of the Department of Health and Human Services who make these inspections may review any writing or other record in any recording medium which pertains to the admission, discharge, medication, treatment, medical condition, or history of persons who are or have been inmates of the facility being inspected. Physicians, psychologists, psychiatrists, nurses, and anyone else involved in giving treatment at or through a facility who may be interviewed by representatives of the Department may disclose to these representatives information related to an inquiry, notwithstanding the existence of the physician‑patient privilege in G.S. 8‑53 or any other rule of law; provided the patient, resident or client has not made written objection to such disclosure. The facility, its employees, and any person interviewed during these inspections shall be immune from liability for damages resulting from the disclosure of any information to the Department. Any confidential or privileged information received from review of records or interviews shall be kept confidential by the Department and not disclosed without written authorization of the inmate or legal representative, or unless disclosure is ordered by a court of competent jurisdiction. The Department shall institute appropriate policies and procedures to ensure that this information shall not be disclosed without authorization or court order. The Department shall not disclose the name of anyone who has furnished information concerning a facility without the consent of that person. Neither the names of persons furnishing information nor any confidential or privileged information obtained from records or interviews shall be considered "public records" within the meaning of G.S. 132‑1. Prior to releasing any information or allowing any inspections referred to in this section the patient, resident or client must be advised in writing that he has the right to object in writing to such release of information or review of his records and that by an objection in writing he may prohibit the inspection or release of his records."
SENIOR SERVICES: PROJECT C.A.R.E. (CAREGIVER ALTERNATIVES TO RUNNING ON EMPTY)
SECTION 10.21.(a) The sum of one million dollars ($1,000,000) is appropriated to the Department of Health and Human Services, Division of Aging and Adult Services, for the 2010‑2011 fiscal year and thereafter to be used to offer Project C.A.R.E. (Caregiver Alternatives to Running on Empty) statewide. Project C.A.R.E. is established to assist caregivers of people with Alzheimer's disease and other dementia.
SECTION 10.21.(b) Project C.A.R.E. services may include:
(1) access to a family consultant with expertise in dementia care who can provide an in‑home needs assessment, counseling, and information;
(2) funds and assistance in securing respite and support services through in‑home personal care, adult day services, group respite, and overnight residential respite; and
(3) linkage to training, educational resources, and other assistance as needed.
SECTION 10.21.(c) Basic requirements for receiving assistance under Project C.A.R.E. include:
(1) confirmation of Alzheimer's disease or other types of dementia; and
(2) residence in North Carolina.
SECTION 10.21.(d) There are no age restrictions for the person with dementia or for the family caregiver.
SECTION 10.21.(e) While there are no income restrictions, the Division of Aging and Adult Services will give priority to persons with social and economic needs as defined in the federal Older Americans Act, and the Division will institute a fee schedule and process to help cover the cost of providing services and support expansion of these services.
SECTION 10.21.(f) Funding for the Division of Aging and Adult Services to administer this program shall not exceed the percentage allowed for administration as provided in the federal Older Americans Act.
SECTION 10.21.(g) The sum of two hundred thousand dollars ($200,000) appropriated to the Department of Health and Human Services, Division of Aging and Adult Services, for the 2010‑2011 fiscal year and thereafter shall be used to support Alzheimer's‑related activities consistent with the goals of Project C.A.R.E. The Division of Aging and Adult Services will develop and implement an annual plan for use of these funds and report on their use to the Governor's Advisory Council on Aging and the Study Commission on Aging.
UNIVERSAL CHILDHOOD VACCINE PROGRAM
SECTION 10.21A. The Department of Health and Human Services shall negotiate with insurance companies in the State their voluntary participation in creating the Universal Vaccines for Children Program. The program shall include a Childhood Immunization Account to assist with the purchase, storage, distribution, and quality assurance of childhood vaccines approved by the Centers for Disease Control and Prevention (CDC). Insurance companies will contribute the resources necessary to support the operation of the program, including the CDC‑recommended vaccinations of children enrolled in their plans. The Department of Health and Human Services and the Department of Insurance shall work collaboratively to implement the Childhood Immunization Account. Local health directors shall continue to enforce immunization requirements as provided by Part 2 of Article 6 of Chapter 130A of the General Statutes.
In the event voluntary participation cannot be negotiated, on October 1, 2010, the Secretary of the Department of Health and Human Services shall implement mandatory assessments to require insurance companies to financially support the vaccination of children enrolled in their plans. Such assessments to cover the full cost of the program shall be made to each insurance company consistent with the proportion of covered lives by each company within North Carolina to the total number of covered lives in North Carolina.
DHHS BLOCK GRANTS
SECTION 10.22.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2011, according to the following schedule:
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Work First Family Assistance $87,827,996
02. Work First County Block Grants 94,453,315
03. Child Protective Services – Child Welfare
Workers for Local DSS 14,452,391
04. Work First – Boys and Girls Clubs 1,600,000
05. Work First – After-School Services for At-Risk Children 1,639,714
06. Work First – After School Programs for
At-Risk Youth in Middle Schools 400,000
07. Work First – Connect, Inc. (Work Central) 220,000
08. Work First – Citizens Schools Program 360,000
09. Adoption Services – Special Children’s
Adoption Fund 819,229
10. Family Violence Prevention 880,000
11. Child Welfare Collaborative Transition 674,784
Division of Child Development
12. Subsidized Child Care Program 61,087,077
Division of Public Health
13. Teen Pregnancy Prevention Initiatives 360,000
DHHS Administration
14. Division of Social Services 1,093,176
15. Office of the Secretary 20,000
Transfers to Other Block Grants
Division of Child Development
16. Transfer to the Child Care and
Development Fund 84,330,900
Division of Social Services
17. Transfer to Social Services Block Grant for Child
Protective Services –Training 1,000,000
18. Transfer to Social Services Block Grant for Maternity Homes 471,501
19. Transfer to Social Services Block Grant for Teen
Pregnancy Prevention Initiatives 1,250,000
20. Transfer to Social Services Block Grant for County
Departments of Social Services for Children's Services 4,500,000
21. Transfer to Social Services Block Grant for
Subsidized Child Care Program 2,000,000
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $359,440,083
SOCIAL SERVICES BLOCK GRANT
Local Program Expenditures
Divisions of Social Services and Aging and Adult Services
01. County Departments of Social Services $ 28,868,189
(Transfer from TANF – $4,500,000)
02. State In‑Home Services Fund (DAAS) 2,101,113
03. State Adult Day Care Fund (DAAS) 2,155,301
04. Child Protective Services/CPS Investigative
Services‑Child Medical Evaluation Program (DSS) 609,455
05. Foster Care Services 1,989,363
06. Maternity Homes (Transfer from TANF) 471,501
07. Special Children Adoption Incentive Fund 500,000
08. Child Protective Services‑Child Welfare Training
for Counties 1,000,000
(Transfer from TANF)
09. Home and Community Care Block Grant (HCCBG) 1,834,077
Division of Mental Health, Developmental Disabilities, and Substance
Abuse Services
10. Mental Health Services Program 422,003
11. Developmental Disabilities Services Program 5,000,000
12. Mental Health Services‑Adult and
Child/Developmental Disabilities Program/
Substance Abuse Services‑Adult 3,234,601
Division of Child Development
13. Subsidized Child Care Program 3,150,000
(Transfer from TANF $2,000,000)
Division of Vocational Rehabilitation
14. Vocational Rehabilitation Services – Easter Seal Society/UCP
Community Health Program 188,263
Division of Public Health
15. Teen Pregnancy Prevention Initiatives 1,250,000
(Transfer from TANF)
DHHS Program Expenditures
Division of Aging and Adult Services
16. UNC‑CH CARES Training Contract 247,920
Division of Services for the Blind
17. Independent Living Program 3,633,077
Division of Health Service Regulation
18. Adult Care Licensure Program 411,897
19. Mental Health Licensure and Certification Program 205,668
DHHS Administration
20. Division of Aging and Adult Services 688,436
21. Division of Social Services 892,624
22. Office of the Secretary/Controller's Office 138,058
23. Office of the Secretary/DIRM 87,483
24. Division of Child Development 15,000
25. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 29,665
26. Division of Health Service Regulation 235,625
27. Office of the Secretary‑NC Inter‑Agency Council
for Coordinating Homeless Programs 250,000
28. Office of the Secretary 48,053
Transfers to Other State Agencies
Department of Administration
29. NC Commission of Indian Affairs In‑Home
Services for the Elderly 203,198
Transfers to Other Block Grants
Division of Public Health
30. Transfer to Preventive Health Services Block Grant
for HIV/STD Prevention and Community Planning 145,819
TOTAL SOCIAL SERVICES BLOCK GRANT $ 60,006,389
LOW‑INCOME HOME ENERGY ASSISTANCE BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Low‑Income Energy Assistance Program (LIEAP) $ 70,909,401
02. Crisis Intervention Program (CIP) 40,373,328
Local Administration
Division of Social Services
03. County DSS Administration 6,362,505
DHHS Administration
04. Division of Social Services 275,000
05. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 8,128
06. Office of the Secretary/DIRM 276,784
07. Office of the Secretary/Controller's Office 12,332
Transfers to Other State Agencies
Department of Commerce
08. Weatherization Program 500,000
09. Heating Air Repair and Replacement Program (HARRP) 8,103,157
10. Local Residential Energy Efficiency Service
Providers – Weatherization 25,000
11. Local Residential Energy Efficiency Service Providers–HARRP 266,375
12. Department of Commerce Administration –Weatherization 25,000
13. Department of Commerce Administration – HARRP 266,375
14. Department of Administration –N.C. Commission of Indian Affairs 129,807
TOTAL LOW‑INCOME HOME ENERGY ASSISTANCE
BLOCK GRANT $ 127,533,192
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
Local Program Expenditures
Division of Child Development
01. Subsidized Child Care Services (CCDF) $156,953,297
02. Child Care Services Support – Contract 502,080
03. Subsidized Child Care Services (Transfer from TANF) 84,330,900
04. Quality and Availability Initiatives 23,726,564
05. TEACH Scholarships 3,800,000
Division of Social Services
06. Child Care Services Support – Local $16,108,597
DHHS Administration
Division of Child Development
07. DCD Administrative Expenses 6,753,387
Division of Central Administration
08. DHHS Central Administration – DIRM
Technical Services 774,317
TOTAL CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT $292,949,143
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT RECEIVED THROUGH THE AMERICAN RECOVERY AND REINVESTMENT ACT of 2009 (ARRA)
Local Program Expenditures
Division of Child Development
01. Subsidized Child Care Services (CCDF) $9,980,997
DHHS Program Expenditures
Division of Child Development
02. Quality and Availability Initiatives 2,904,786
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT RECEIVED THROUGH ARRA $12,885,784
MENTAL HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. Mental Health Services – Adult $ 6,856,242
02. Mental Health Services – Child 5,421,991
03. Administration 100,000
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 12,378,233
SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT
Local Program Expenditures
Division of Mental Health, Developmental Disabilities, and Substance Abuse Services
01. Substance Abuse Services – Adult $ 22,008,080
02. Substance Abuse Treatment Alternative for Women 8,107,303
03. Substance Abuse – HIV and IV Drug 5,116,378
04. Substance Abuse Prevention – Child 7,186,857
05. Substance Abuse Services – Child 4,940,500
06. Administration 500,000
Division of Public Health
08. Risk Reduction Projects 633,980
09. Aid‑to‑Counties 209,576
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 48,702,674
MATERNAL AND CHILD HEALTH BLOCK GRANT
Local Program Expenditures
Division of Public Health
01. Children's Health Services $7,534,865
02. Women's Health 7,701,691
03. Oral Health 38,041
DHHS Program Expenditures
Division of Public Health
04. Children's Health Services 1,368,778
05. Women's Health 135,452
06. State Center for Health Statistics 179,483
07. Quality Improvement in Public Health 14,646
08. Health Promotion 88,746
09. Office of Minority Health 55,250
10. Immunization Program – Vaccine Distribution 382,648
DHHS Administration
Division of Public Health
11. Division of Public Health Administration 631,966
TOTAL MATERNAL AND CHILD HEALTH BLOCK GRANT $ 18,131,566
PREVENTIVE HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
Division of Public Health
01. NC Statewide Health Promotion $1,730,653
02. Services to Rape Victims 197,112
03. HIV/STD Prevention and Community Planning
(Transfer from Social Services Block Grant) 145,819
DHHS Program Expenditures
Division of Public Health
04. NC Statewide Health Promotion 1,623,117
05. Oral Health 70,000
06. State Laboratory of Public Health 16,600
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $ 3,783,301
COMMUNITY SERVICES BLOCK GRANT
Local Program Expenditures
Office of Economic Opportunity
01. Community Action Agencies $ 17,968,944
02. Limited Purpose Agencies 998,275
DHHS Administration
03. Office of Economic Opportunity 998,274
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 19,965,493
COMMUNITY SERVICES BLOCK GRANT RECEIVED THROUGH THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA)
Local Program Expenditures
Office of Economic Opportunity
01. Community Action Agencies $ 10,000,000
TOTAL COMMUNITY SERVICES BLOCK GRANT
RECEIVED THROUGH ARRA $ 10,000,000
GENERAL PROVISIONS
SECTION 10.22.(b) Information to Be Included in Block Grant Plans. – The
Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department, and each plan shall include the following:
(1) A delineation of the proposed allocations by program or activity, including State and federal match requirements.
(2) A delineation of the proposed State and local administrative expenditures.
(3) An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.
(4) A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.
(5) A projection of current year expenditures by program or activity.
(6) A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.
SECTION 10.22.(c) Changes in Federal Fund Availability. – If the Congress of the United States increases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall allocate the increase proportionally across the program and activity appropriations identified for that Block Grant in this section. In allocating an increase in federal fund availability, the Department shall not propose funding for new programs or activities not appropriated in this section.
If the Congress of the United States decreases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall reduce State administration by at least the percentage of the reduction in federal funds. After determining the State administration, the remaining reductions shall be allocated proportionately across the program and activity appropriations identified for that Block Grant in this section.
Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Commission on Governmental Operations, 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 10.22.(d) Appropriations from federal Block Grant funds are made for the fiscal year ending June 30, 2011, according to the schedule enacted for State fiscal year 2010‑2011 or until a new schedule is enacted by the General Assembly.
SECTION 10.22.(e) All changes to the budgeted allocations to the Block Grants administered by the Department of Health and Human Services that are not specifically addressed in this section shall be approved by the Office of State Budget and Management, and a report shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to implementing the changes. All changes to the budgeted allocations to the Block Grants shall be reported immediately 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. This subsection does not apply to Block Grant changes caused by legislative salary increases and benefit adjustments.
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) BLOCK GRANT
SECTION 10.22.(f) The sum of one million ninety-three thousand one hundred
seventy-six dollars ($1,093,176) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2010-2011 fiscal year shall be used to support administration of TANF-funded programs.
SECTION 10.22.(g) The sum of eight hundred eighty thousand dollars ($880,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2010-2011 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 support 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 develop jointly 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, 2010. 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, 2010, 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, 2010. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
SECTION 10.22.(h) The sum of one million six hundred thirty-nine thousand seven hundred fourteen dollars ($1,639,714) appropriated in this section in TANF Block Grant funds to the Department of Health and Human Services, Division of Social Services, for the 2010-2011 fiscal year 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, school dropout, and gang participation. 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 fund one position within the Division of Social Services to coordinate at-risk after-school programs and shall not be used for other State administration.
SECTION 10.22.(i) The sum of fourteen million four hundred fifty-two thousand three hundred ninety-one dollars ($14,452,391) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2010-2011 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 10.22.(j) The sum of eight hundred nineteen thousand two hundred twenty nine dollars ($819,229) appropriated in this section in TANF Block Grant funds to the Department of Health and Human Services, Special Children Adoption Fund, for the 2010-2011 fiscal year shall be used in accordance with G.S. 108A-50.2, as enacted in Section 10.48 of this act. 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 10.22.(k) The sum of four hundred thousand dollars ($400,000) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in TANF Block Grant funds for the 2010-2011 fiscal year shall be used to expand after-school programs for at-risk youth attending middle school. The Department shall develop and implement a grant program to award funds to community-based programs demonstrating the capacity to reach children at risk of teen pregnancy, school dropout, and gang participation. These funds shall not be used for training or administration at the State level. All funds shall be distributed to community-based programs, focusing on those communities where similar programs do not exist in middle schools.
SECTION 10.22.(l) In implementing the TANF Block Grants, the Department of Health and Human Services shall review policies, programs, and initiatives to ensure that they support men in their role as fathers and strengthen fathers' involvement in their children's lives. The Department shall encourage county departments of social services to ensure their Work First programs emphasize responsible fatherhood and increased participation by noncustodial fathers.
SECTION 10.22.(m) The sum of two hundred twenty thousand dollars ($220,000) appropriated in this section to the Department in TANF Block Grant funds for the 2010-2011 fiscal year shall be transferred to Connect, Inc. Connect, Inc., shall report on the number of people served and the services received as a result of the receipt of funds. The report shall contain expenditure data, including the amount of funds used for administration and direct training. The report shall also include the number of people who have been employed as a direct result of services provided by Connect, Inc., including the length of employment in the new position. The Department of Health and Human Services shall evaluate the program and ensure that services provided are not duplicative of local employment security commissions in the nine counties served by Connect, Inc. The evaluation report shall be submitted to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division no later than May 1, 2011.
SECTION 10.22.(n) The sum of one million six hundred thousand dollars ($1,600,000) appropriated in this section to the Department in TANF Block Grant funds for Boys and Girls Clubs for the 2010-2011 fiscal year 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 gang participation, 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 10.22.(o) The sum of six hundred seventy four thousand, seven hundred eighty four dollars ($674,784) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for the 2010-2011 fiscal year shall be used to continue support for the Child Welfare Collaborative transition.
SECTION 10.22.(p) The sum of three hundred sixty thousand dollars ($360,000) appropriated to the Department of Health and Human Services, Division of Social Services, under this section in TANF Block Grant funds for the 2010-2011 fiscal year shall be used to continue support for the Citizens Schools Program, an urban/rural dropout prevention pilot program in the Durham and Vance county public school systems.
SOCIAL SERVICES BLOCK GRANT
SECTION 10.22.(q) Social Services Block Grant funds appropriated to the North Carolina Inter‑Agency Council for Coordinating Homeless Programs and funds appropriated for child medical evaluations are exempt from the provisions of 10A NCAC 71R .0201(3).
SECTION 10.22.(r) The sum of one million dollars ($1,000,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2010‑2011 fiscal year shall be used to support various child welfare training projects as follows:
(1) Provide a regional training center in southeastern North Carolina.
(2) Provide training for residential child caring facilities.
(3) Provide for various other child welfare training initiatives.
SECTION 10.22.(s) The sum of four hundred seventy‑one thousand five hundred one dollars ($471,501) appropriated in this section to the Department of Health and Human Services in the Social Services Block Grant for the 2010‑2011 fiscal year shall be used to support maternity home services.
SECTION 10.22.(t) The sum of one million nine hundred eighty‑nine thousand three hundred sixty‑three dollars ($1,989,363) appropriated in this section in the Social Services Block Grant for the 2010‑2011 fiscal year shall be allocated in support of State foster home children.
SECTION 10.22.(u) The Department of Health and Human Services is authorized, subject to the approval of the Office of State Budget and Management, to transfer Social Services Block Grant funding allocated for departmental administration between divisions that have received administrative allocations from the Social Services Block Grant.
SECTION 10.22.(v) Social Services Block Grant funds appropriated for the Special Children's Adoption Incentive Fund will require fifty percent (50%) local match.
LOW‑INCOME HOME ENERGY ASSISTANCE BLOCK GRANT
SECTION 10.22.(w) Additional emergency contingency funds received may be allocated for Energy Assistance Payments or Crisis Intervention Payments without prior consultation with the Joint Legislative Commission on Governmental Operations. Additional funds received shall be reported to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division upon notification of the award. The Department of Health and Human Services shall not allocate funds for any activities, including increasing administration, other than assistance payments, without prior consultation with the Joint Legislative Commission on Governmental Operations.
In addition to funds available for weatherization appropriated within the Low‑Income Home Energy Assistance Block Grant, funds available through the American Recovery and Reinvestment Act of 2009 shall be used to continue to enhance weatherization activities coordinated by local agencies.
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
SECTION 10.22.(x) 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 10.22.(y) 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 10.22.(z) Funds from the Child Care and Development Fund Block Grant received through the American Recovery and Reinvestment Act of 2009 shall be used to increase access to child care subsidy. To help address the economic downturn and increasing unemployment in North Carolina, the Department of Health and Human Services, Division of Child Development, shall adopt temporary policies that facilitate and expedite the prudent expenditure of these funds as follows:
(1) Permit the local purchasing agencies to issue time‑limited vouchers to assist counties in managing onetime, nonrecurring subsidy funding.
(2) Extend the current 30/60‑day job search policy to six months when a recipient experiences a loss of employment.
(3) Provide an up‑front job search period of six months for applicants who have lost employment since October 1, 2008.
(4) Provide a job search period of six months for recipients that complete school and are entering the job market.
(5) Notwithstanding any other provision of law, extend the 24‑month education time limit for an additional 12 months for a child care recipient who has lost a job since October 1, 2008, or otherwise needs additional training to enhance his or her marketable skills for job placement due to the economic downturn and who has depleted his or her 24‑month allowable education time.
(6) Lower the number of hours a parent must be working in order to be eligible for subsidy to assist parents who are continuing to work but at reduced hours.
SECTION 10.22.(aa) If American Recovery and Reinvestment Act of 2009 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.
MATERNAL AND CHILD HEALTH BLOCK GRANT
SECTION 10.22.(bb) 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 2010‑2011 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an abstinence until marriage education program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C‑81(e1)(4) and (4a). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.
SECTION 10.22.(cc) The Department of Health and Human Services shall ensure that there will be follow‑up testing in the Newborn Screening Program.
COMMUNITY SERVICES BLOCK GRANT
SECTION 10.22.(dd) In accordance with the intent of the American Recovery and Reinvestment Act of 2009, the North Carolina General Assembly strongly encourages recipients of Community Services Block Grant and Community Services Block Grant Recovery funds to enhance cooperation with county departments of social services and regional food banks to increase benefits enrollment for eligible persons.
SECTION 10.22.(ee) The sum of two hundred sixty‑two thousand four hundred thirty‑one dollars ($262,431) appropriated in this section in the Community Services Block Grant, received through the American Recovery and Reinvestment Act of 2009 (ARRA), to the Department of Health and Human Services, Division of Social Services, for the 2010‑2011 fiscal year shall be used for coordination activities relating to the identification and enrollment of eligible individuals and families in federal, State, and local benefit programs.
PART XI. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
fEE increases
section 11.1.(a) G.S. 143‑440 reads as rewritten:
"§ 143‑440. Restricted use pesticides regulated.
(a) The Board may, by regulation after a public hearing, adopt and from time to time revise a list of restricted use pesticides for the State or for designated areas within the State. The Board may designate any pesticide or device as a "restricted use pesticide" upon the grounds that, in the judgment of the Board (either because of its persistence, its toxicity, or otherwise) it is so hazardous or injurious to persons, pollinating insects, animals, crops, wildlife, lands, or the environment, other than the pests it is intended to prevent, destroy, control, or mitigate that additional restriction on its sale, purpose, use or possession are required.
(b) The Board may include in any such restricted use regulation the time and conditions of sale, distribution, or use of such restricted use pesticides, may prohibit the use of any restricted use pesticide for designated purposes or at designated times; may require the purchaser or user to certify that restricted use pesticides will be used only as labeled or as further restricted by regulation; may require the certification and recertification of private applicators and, charge a fee of up to ten dollars ($10.00), with the fee set at a level to make the certification/recertification program self‑supporting, and, after opportunity for a hearing, may suspend, revoke or modify the certification for violation of any provision of this Article, or any rule or regulation adopted thereunder; and may, if it deems it necessary to carry out the provisions of this Part, require that any or all restricted use pesticides shall be purchased, possessed, or used only under permit of the Board and under its direct supervision in certain areas and/or under certain conditions or in certain quantities or concentrations except that any person licensed to sell such pesticides may purchase and possess such pesticides without a permit. The Board may require all persons issued such permits to maintain records as to the use of the restricted use pesticides. The Board may authorize the use of restricted use pesticides by persons licensed under the North Carolina Structural Pest Control Act without a permit. A nonrefundable fee of ten dollars ($10.00) shall be charged for each examination required by this section. This examination fee is in addition to the certification or recertification fee, and any other fee authorized pursuant to any other provision of the North Carolina Pesticide Law of 1971, as amended.
(c) A fee of fifty dollars ($50.00) shall be charged for examination of individuals seeking to be designated as Worker Protection Designated Trainers, in accordance with provisions of the Federal Worker Protection Standard set forth in 40 C.F.R. Part 170, and subsequent amendments to those regulations."
SECTION 11.1.(b) G.S. 143‑448 reads as rewritten:
"§ 143‑448. Licensing of pesticide dealers; fees.
(a) No person shall act in the capacity of a pesticide dealer, or shall engage or offer to engage in the business of, advertise as, or assume to act as a pesticide dealer unless he is licensed annually as provided in this Part. A separate license and fee shall be obtained for each location or outlet from which restricted use pesticides are distributed, sold, held for sale, or offered for sale.
(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 fifty
dollars ($50.00).seventy‑five dollars ($75.00). All licenses
issued under this Part shall expire on December 31 of the year for which they
are issued.
(c) The license for a pesticide dealer may be renewed annually upon application to the Board, accompanied by a fee of 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.
(d) Repealed by Session Laws 1981, c. 592, s. 6.
(e) Every licensed pesticide dealer who changes his address or place of business shall immediately notify the Board.
(f) The Board shall issue to each applicant that satisfies the requirements of this Part a license which entitles the applicant to conduct the business described in the application for the calendar year for which the license is issued, unless the license is sooner revoked or suspended."
SECTION 11.1.(c) G.S. 143‑449 reads as rewritten:
"§ 143‑449. Qualifications for pesticide dealer license; examinations.
(a) An applicant for a license must present evidence satisfactory to the Board concerning his qualifications for such license.
(b) Each applicant shall satisfy the Board as to his responsibility in carrying on the business of a pesticide dealer. Each applicant for an original license must demonstrate upon written, or written and oral, examination to be prescribed by the Board his knowledge of pesticides, their usefulness and their hazards; his competence as a pesticide dealer; and his knowledge of the laws and regulations governing the use and sale of pesticides. A nonrefundable fee of fifty dollars ($50.00) shall be charged for each examination required by this section. This examination fee is in addition to any fee authorized pursuant to any other provision of the North Carolina Pesticide Law of 1971, as amended.
(c) The Board shall by regulation:
(1) Designate what persons or class of persons shall be required to pass the examination in the case of a pesticide dealer operating more than one location, and in the case of an applicant that is a corporation, governmental unit or agency, or other organized group;
(2) Provide for renewal license examinations at intervals not more frequent than four years."
SECTION 11.1.(d) G.S. 143‑452 reads as rewritten:
"§ 143‑452. Licensing of pesticide applicators; fees.
(a) No person shall engage in the business of pesticide applicator within this State at any time unless he is licensed annually as a pesticide applicator by the Board.
(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 fifty
dollars ($50.00) seventy‑five dollars ($75.00) for each
pesticide applicator's license. In addition, an annual inspection fee of 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 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.
(c) Repealed by Session Laws 1981, c. 592, s. 6.
(d) The Board shall classify licenses to be issued under this Part. Separate classifications or subclassifications shall be specified for (i) ground and aerial methods of application, and (ii) State and local government units engaged in the control of rodents and insects of public health significance. The Board may include such further classifications and subclassifications as the Board considers appropriate, including provisions for licensing of apprentice pesticide applicators. For aerial applicators, a license shall be required for both the contractor and the pilot. Each classification and subclassification may be subject to separate testing procedures and requirements.
(e) Every licensed pesticide applicator who changes his address shall immediately notify the Board.
(f) If the Board finds the applicant qualified to apply pesticides in the classifications he has applied for and, if the applicant files the bond or insurance required under G.S. 143‑467, and if the applicant applying for a license to engage in aerial application of pesticides has met all of the requirements of the Federal Aviation Agency to operate the equipment described in the application, the Board shall issue a pesticide applicator's license limited to the classifications for which he is qualified. Every such license shall expire at the end of the calendar year of issue unless it has been revoked or suspended prior thereto by the Board for cause, or unless such financial security required under G.S. 143‑467 is dated to expire at an earlier date, in which case said license shall be dated to expire upon expiration date of said financial security. The license may restrict the applicant to the use of a certain type or types of equipment or pesticides or to certain areas if the Board finds that the applicant is qualified to use only such type or types. If a license is not issued as applied for, the Board shall inform the applicant in writing of the reasons therefor.
(g) A pesticide applicator's license shall not be transferable. When there is a transfer of ownership, management, or operation of a business of a licensee hereunder, the new owner, manager, or operator (as the case may be) whether it be an individual, firm, partnership, corporation, or other entity, must have available a licensed pesticide applicator to supervise the pesticide application business prior to continuance of such business.
(h) Repealed by Session Laws 1987, c. 559, s. 15."
SECTION 11.1.(e) G.S. 143‑453 reads as rewritten:
"§ 143‑453. Qualifications for pesticide applicator's license; examinations.
(a) An applicant for a license must present satisfactory evidence to the Board concerning his qualifications for a pesticide applicator license. The contractor and each pilot involved in aerial application of pesticides shall be licensed.
Those qualifications, in the case of a pilot, shall include at least 125 hours and one year's flying experience as a pilot in the field of aerial pesticide application. A pilot lacking 125 hours and one year's experience as a pilot in the field of aerial pesticide application shall be licensed as an apprentice aerial pesticide applicator pilot. All aerial applications of pesticides by a licensed apprentice shall be conducted under the direct supervision of a licensed pesticide applicator pilot. The supervising pilot, while directly supervising an apprentice, shall operate out of the same airstrip as the apprentice and shall be available periodically throughout each day to provide advice and assistance to the apprentice. A nonrefundable fee of fifty dollars ($50.00) shall be charged for the examination required by this subsection. Such examination fee shall be charged in addition to the fees authorized pursuant to subsection (b) of this section or any other provision of the North Carolina Pesticide Law of 1971, as amended.
(b) Each applicant shall satisfy the Board as to his knowledge of the laws and regulations governing the use and application of pesticides in the classifications he has applied for (manually or with various equipment that he may have applied for a license to operate), and as to his responsibility in carrying on the business of a pesticide applicator. Each applicant for an original license must demonstrate upon written, or written and oral, examination to be prescribed by the Board his knowledge of pesticides, their usefulness and their hazards; his competence as a pesticide applicator; and his knowledge of the laws and regulations governing the use and application of pesticides in the classification for which he has applied. A nonrefundable fee of fifty dollars ($50.00) shall be charged for the core exam and an additional twenty dollars ($20.00) shall be charged for each additional specific classification licensure. Such examination fees shall be charged in addition to the fees authorized pursuant to subsection (a) of this section or any other provision of the North Carolina Pesticide Law of 1971, as amended.
(c) The Board shall by regulation:
(1) Designate what persons or class of persons shall be required to pass the examination in the case of an applicant that is a corporation or governmental unit or agency;
(2) Provide for license renewal examinations at intervals not more frequent than four years, or more frequently if found by the Board to be required to be necessary in order to qualify North Carolina's State pesticide control plan for federal approval."
SECTION 11.1.(f) G.S. 143‑455 reads as rewritten:
"§ 143‑455. Pest control consultant license.
(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 fifty dollars ($50.00).seventy‑five
dollars ($75.00).
(b) An applicant for a consultant license must present satisfactory evidence to the Board concerning his qualifications for such license. The Board may classify consultant licenses into one or more classifications or subclassifications based upon types of consulting services performed or to be performed. Such classifications and subclassifications may reflect the crops involved in the consulting service, the discipline or training of consultant, the discretion or lack of discretion involved in the consulting service, and the site or location of the service. Each classification and subclassification may be subject to separate testing procedures and requirements, and may be subject to its own minimum standards of training in specialized subject matter from a recognized college or university, or equivalent specialized consulting experience or training. A nonrefundable fee of fifty dollars ($50.00) shall be charged for the consultant examination and an additional twenty dollars ($20.00) shall be charged for each additional specific classification licensure permitted by this subsection. Such examination fee shall be charged in addition to the fees authorized pursuant to subsection (a) of this section or any other provision of the North Carolina Pesticide Law of 1971, as amended. Qualifications for licensing may be less stringent if the licensee is restricted to making recommendations contained in publications recognized by the Board as appropriate for a specific consulting classification or subclassification.
(c) Each applicant shall satisfy the Board as to his responsibility in carrying on the business of a pesticide consultant. Each applicant for an original license must demonstrate upon written, or written and oral, examination to be prescribed by the Board his knowledge of pesticides, their usefulness and their hazards; his competence as a pesticide consultant; and his knowledge of the laws and regulations governing the use and sale of pesticides.
(d) Pest control consultants shall be subject to the same provisions as pesticide applicators concerning penalties for late applications for license, changes of address, transferability of licenses, periodic reexamination, and examinations for corporate applicants."
SECTION 11.1.(g) G.S. 106‑65.27 reads as rewritten:
"§ 106‑65.27. Examinations of applicants; fee; license not transferable.
(a) Certified Applicator. – All applicants for a certified applicator's identification card shall demonstrate practical knowledge of the principles and practices of pest control and safe use of pesticides. Competency shall be determined on the basis of written examinations to be provided and administered by the Committee and, as appropriate, performance testing. Testing shall be based upon examples of problems and situations appropriate to the particular phase or subphase of structural pest control for which application is made and shall include, where relevant, the following areas of competency:
(1) Label and labeling comprehension.
(2) Safety factors associated with pesticides – toxicity, precautions, first aid, proper handling, etc.
(3) Influence of and on the environment.
(4) Pests – identification, biology, and habits.
(5) Pesticides – types, formulations, compatibility, hazards, etc.
(6) Equipment – types and uses.
(7) Application techniques.
(8) Laws and regulations.
An applicant for a certified applicator's identification card
shall submit an examination fee of ten dollars ($10.00) twenty‑five
dollars ($25.00) for each phase or subphase of structural pest control in
which the applicant chooses to be examined. An examination for more than one
phase or subphase may be taken at the same time at any regularly scheduled
examination. Frequency of such examinations shall be at the discretion of the
Committee, provided that a minimum of two examinations be given annually. The
examination will cover each phase or subphase of structural pest control for
which application is being made.
(b) License. – Each applicant for an original license
must demonstrate upon written examination, to be provided and administered by
the Committee, his competency as a structural pest control operator for the
phase or subphase in which he is applying for a license. Frequency of such
examinations shall be at the discretion of the Committee, provided that a
minimum of two examinations shall be given annually. The examination will cover
each phase or subphase of structural pest control for which application is
being made. All applicants for a license shall register with the Division on a
prescribed form. A license examination fee of twenty‑five dollars
($25.00) fifty dollars ($50,00) shall be charged for each phase or
subphase of structural pest control in which the applicant chooses to be
examined. An examination for more than one phase or subphase of structural pest
control may be taken at the same time.
(c) A license, certified applicator's identification card or registered technician's identification card is not transferable from one person to another. A licensee or certified applicator may change the name of his business or employer's business on his license certificate or certified applicator's identification card upon application to the Division.
(c1) When there is a transfer of ownership, management, operation of a structural pest control business or in the event of the death or disability of a licensee there shall be not more than a total of 90 days during any 12‑month period in which said business shall operate without a licensee assigned to it; provided that, in the event of the death or disability of a licensee, the Committee shall have the authority to grant up to an additional 90 days within the 12‑month period in which a business may operate without a licensee assigned to it.
The owner, partnership, corporation, or other entity operating said business shall, within 10 days of such transfer or disability or within 30 days of death, designate in writing to the Division a certified applicator who shall be responsible for and in charge of the structural pest control operations of said business during the 90‑day period. If the owner, partnership, corporation, or other entity operating the business fails to designate a certified applicator who shall be responsible for the operation of the business during the 90‑day period, the business shall cease all structural pest control activities upon expiration of the applicable notification period and shall not resume operations until a certified applicator is so designated.
During the 90‑day period the use of any restricted use pesticide shall be by or under the direct supervision of the certified applicator designated in writing to the Division. The designated certified applicator shall be responsible for correcting all deviations on all existing contracts and for all work performed under his supervision.
The new licensee shall be responsible for correcting all deviations on all existing contracts and for all work performed under his supervision.
(d) The Committee shall by regulation provide for:
(1) Establishing categories of certified applicators, along with such appropriate subcategories as are necessary, to meet the requirements of this Article;
(2) All licensees licensed prior to October 21, 1976, to become qualified as certified applicators; and
(3) Requalifying certified applicators thereafter as required by the federal government at intervals no more frequent than that specified by federal law and federal regulations."
SECTION 11.1.(h) G.S. 106‑65.31 reads as rewritten:
"§ 106‑65.31. Annual certified applicator card and license fee; registration of servicemen, salesmen, solicitors, and estimators; identification cards.
(a) Certified Applicator's Identification Card. – The
fee for issuance or renewal of a certified applicator's identification card
shall be thirty dollars ($30.00).fifty dollars ($50.00). Within
75 days after the employment of a certified applicator, the licensee shall
apply to the Division for the issuance of a certified applicator's
identification card. A certified applicator's identification card shall expire
on June 30 of each year and shall be renewed annually. All certified
applicators who fail or neglect to renew their card on or before June 30 but
make application before January 1 of the following year may have their card
renewed without having to be reexamined unless the applicant is scheduled for
periodic reexamination under regulations adopted pursuant to G.S. 106‑65.27(d)(3).
All applicants submitting applications for the renewal of their cards after
June 30 shall not use or supervise the use of restricted use pesticides until a
new card has been issued.
Any certified applicator whose employment is terminated with a licensee or agent prior to the end of any license year may at any time prior to the end of the license year be reissued a certified applicator's identification card for the remainder of the license year as an employee of another licensee or agency or as an individual for a fee of five dollars ($5.00). The licensee shall notify the Division of the termination or change in status of any certified applicator.
Any certified applicator whose identification card is lost or destroyed or changed in any way may be reissued a new card for the remainder of the license year for a fee of five dollars ($5.00).
(b) License. – The fee for the issuance or renewal of
a license for any one phase of structural pest control shall be one hundred
fifty dollars ($150.00). two hundred dollars ($200.00). Each
additional phase shall be sixty‑five dollars ($65.00). seventy‑five
dollars ($75.00). The fee for each subphase shall be fifteen dollars
($15.00). Licenses shall expire on June 30 of each year and shall be renewed
annually. All licensees who fail or neglect to renew their license on or before
June 30, but who make application before January 1 of the following year, may
have their license renewed without having to be reexamined, unless the
applicant is scheduled for periodic reexamination under regulations adopted
pursuant to G.S. 106‑65.27(d)(3). No structural pest control work
may be performed until the license has been renewed or until a new license has
been issued.
Any licensee whose employment is terminated by his employer or any licensee who is transferred to another company or location other than the company or location shown on his license certificate, may at any time, have his license reissued for the remainder of the license year for a fee of ten dollars ($10.00).
Any licensee whose license is lost or destroyed may secure a duplicate license for a fee of ten dollars ($10.00).
(b1) Registration. – Within 75 days after the hiring of
an employee who is either an estimator, salesman, serviceman, or solicitor, the
licensee shall apply to the Division for the issuance of an identification card
for such employee. The application must be accompanied by a fee of twenty‑five
dollars ($25.00) forty dollars ($40.00) for each card. The card
shall be issued in the name of the employee and shall bear the name of the
employing licensee, the employer's license number and phases, the name and
address of the employer's business, and such other information as the Committee
may specify. The identification card shall be carried by the employee on his
person at all times while performing any phase of structural pest control work.
The card must be displayed upon demand by the Commissioner, the Committee, the
Division, or any representative thereof, or the person for whom any phase of
structural pest control work is being performed. A registered technician's
identification card must be renewed annually on or before June 30 by payment of
a renewal fee of twenty‑five dollars ($25.00). If a card is lost or
destroyed the licensee may secure a duplicate for a fee of five dollars
($5.00).The licensee shall notify the Division of the termination or change in
status of any registered technician. All identification cards expire when a
license expires.
When a license is reissued, the licensee shall be responsible for registering and securing identification cards for all existing employees who engage in structural pest control within 10 days of the reissuance of the license.
A certified applicator who is not an employee of a licensed individual shall register the names of all employees under his supervision who are engaged in the performance of structural pest control with the Division and shall purchase a registered technician's identification card for each such employee.
(b2) No person shall act as an estimator, serviceman, salesman, solicitor, or agent for any licensee under this Article nor shall any such person be issued an identification card by the Committee who has within three years of the date of application for an identification card been convicted of, plead guilty or nolo contendere, or forfeited bond in any State or federal court for a felony or any violation of the North Carolina Structural Pest Control Act or any regulation promulgated by the Committee. This provision shall not apply to any person whose citizenship has been restored as provided by law.
(b3) No person or business shall advertise as a contractor for structural pest control services nor actually contract for such services unless that person or business advertises or contracts in the name of the company shown on the license certificate of the licensee or identification card of the certified applicator who will perform the services.
(c) Notwithstanding any other provision of this law, the Committee may adopt rules to provide for the issuance of licenses, certified applicator's cards, and registered technician's identification cards with staggered expiration dates and may prorate renewal fees on a monthly basis to implement such rules."
PART XII. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
Fishery Resource Grant Funds to be used for At‑Sea Observer Program
SECTION 12.1. Of the funds appropriated to the Department of Environment and Natural Resources for the Fishery Resource Grant Program, the sum of three hundred thousand dollars ($300,000) shall be used by the Division of Marine Fisheries for an At‑Sea Observer Program. This funding is necessary to meet federal requirements to monitor gill net fisheries statewide and record sea turtle and other endangered and threatened species interactions. These funds will support the establishment of three FTE Marine Fisheries Technician II positions for at‑sea observer coverage to allow the gill net fisheries to continue as well as enhance the ability of the Division to collect and analyze data necessary to determine the health of fish stock measures such as spawning stock biomass, mortality, recruitment, and sustainable harvest levels that form the basis for all management actions recommended in Fishery Management Plans.
TRANSFER CERTAIN ENVIRONMENTAL HEALTH PROGRAMS
SECTION 12.3.(a) The following sections of the Division of Environmental Health that support programs implemented through local health departments and programs primarily focused on food safety and other public health concerns are transferred from the Department of Environment and Natural Resources to the Department of Health and Human Services with all the elements of a Type I transfer as defined by G.S. 143A‑6.
(1) Environmental Health Services Section.
(2) Public Health Pest Management Section.
(3) On‑site Water Protection Section.
(4) Radiation Protection Section.
(5) Shellfish Sanitation and Recreational Water Quality Section.
(6) Office of Education and Training.
The Public Water Supply Section shall remain within the Department of Environment and Natural Resources.
SECTION 12.3.(b) The Revisor of the Statutes shall make the conforming statutory changes necessary to reflect this transfer.
SECTION 12.3.(c) This transfer is effective July 1, 2010, and funds transferred shall be net of any changes enacted by this act.
DAM SAFETY FEE
SECTION 12.6. Effective October 1, 2010, a onetime Dam Evaluation Fee of one thousand one hundred dollars ($1,100) per equivalent dam unit shall be paid to the Department of Environment and Natural Resources by electric utility companies in a lump‑sum payment based on the number of dams owned by each company that fall under the jurisdiction of the Dam Safety Law of 1967, Part 3 of Article 21 of Chapter 143 of the General Statutes. Fees collected pursuant to this section shall be used to support onetime limited engineering position and operating funds necessary to perform the evaluation and integration of regulated power plant dams into the Department's dam safety inventory program. These fees shall remain available to the Department and shall not revert until the evaluation and integration of regulated power plants is complete.
AMEND Hazardous Waste Fee
SECTION 12.7. 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 one hundred twenty‑five
dollars ($125.00).one hundred seventy dollars ($170.00)."
PART XIII. DEPARTMENT OF COMMERCE
JMAC RESERVE
SECTION 13.1.(a) G.S. 143B‑437.012(b) is repealed.
SECTION 13.1.(b) Article 9 of Chapter 143C of the General Statutes is amended by adding a new section to read:
"§ 143C‑9‑7. JMAC Reserve Fund.
The State Controller shall establish a reserve in the General Fund to be known as the JMAC Reserve. Funds from the JMAC Reserve shall not be expended or transferred except in accordance with G.S. 143B‑437.012. It is the intent of the General Assembly to appropriate funds annually to the JMAC Reserve established in this section in amounts sufficient to meet the anticipated cash requirements for each fiscal year of the Job Maintenance and Capital Development Program established pursuant to G.S. 143B‑437.012."
NER BLOCK GRANTS
SECTION 13.3.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2011, according to the following schedule:
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $ 1,000,000
02. Scattered Site Housing 16,500,000
03. Economic Development 7,210,000
04. Small Business/Entrepreneurship 3,000,000
05. NC Catalyst 8,240,000
06. State Technical Assistance 450,000
07. Infrastructure 8,000,000
08. Capacity Building 600,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT – 2011 Program Year $ 45,000,000
SECTION 13.3.(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 13.3.(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 13.3.(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; up to sixteen million five hundred thousand dollars ($16,500,000) may be used for Scattered Site Housing; up to seven million two hundred ten thousand dollars ($7,210,000) may be used for Economic Development; up to three million dollars ($3,000,000) may be used for Small Business/Entrepreneurship; not less than eight million two hundred forty thousand dollars ($8,240,000) shall be used for NC Catalyst; up to four hundred fifty thousand dollars ($450,000) may be used for State Technical Assistance; up to eight million dollars ($8,000,000) may be used for Infrastructure; six hundred thousand dollars ($600,000) may be used for Capacity Building. 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 13.3.(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 13.3.(f) The Department of Commerce shall report with the Joint Legislative Commission on Governmental Operations prior to reallocating Community Development Block Grant Funds. Notwithstanding the provisions of this subsection, whenever the Director of the Budget finds that:
(1) A reallocation is required because of an emergency that poses an imminent threat to public health or public safety, the Director of the Budget may authorize the reallocation without consulting the Commission. The Department of Commerce shall report to the Commission on the reallocation no later than 30 days after it was authorized and shall identify in the report the emergency, the type of action taken, and how it was related to the emergency.
(2) The State will lose federal block grant funds or receive less federal block grant funds in the next fiscal year unless a reallocation is made, the Department of Commerce shall provide a written report to the Commission on the proposed reallocation and shall identify the reason that failure to take action will result in the loss of federal funds. If the Commission does not hear the issue within 30 days of receipt of the report, the Department may take the action without consulting the Commission.
RURAL ECONOMIC DEVELOPMENT CENTER/JOBS NOW FUNDS
SECTION 13.4.(a) Of the funds appropriated in this act to the North Carolina Rural Economic Development Center, Inc. (Rural Center), the sum of five million dollars ($5,000,000) for the 2010‑2011 fiscal year shall be used for the following purposes:
(1) Expansion of the Home Grown Jobs Initiative. Three million dollars ($3,000,000) to strengthen the capacity of rural communities to compete for and attract new and expanding businesses by providing additional funding for the Rural Economic Development Center's Building Reuse and Restoration Program.
(2) Expansion of the Small Business Assistance Fund. One million dollars ($1,000,000) to increase small business access to credit as part of the Governor's JobsNOW Small Business Package. The Fund leverages third‑party funding to create a loan loss reserve that provides additional guarantees for SBA‑backed loans made to eligible small businesses through participating lending institutions.
(3) Creation of the Family Farm Opportunity and Innovation Fund. One million dollars ($1,000,000) to develop cost‑shared assistance programs to help small family farm businesses improve energy efficiency, access new markets, and develop new value‑added products. Funds allocated under this item should be used to leverage maximum additional funding from third parties.
Priority for grant funds shall be given to eligible applicants in development tier one areas as defined in G.S. 143B‑437.08.
SECTION 13.4.(b) The Rural Center may use a portion of the funds appropriated in subsection (a) of this section, not to exceed two percent (2%), for administration of the programs for which funds are appropriated in subsection (a) of this section.
SECTION 13.4.(c) The Rural Center may contract with other agencies and institutions for certain aspects of the programs for which funds are appropriated in subsection (a) of this section, including the design of program guidelines and evaluation of program results.
SECTION 13.4.(d) The Rural Center shall report to the Joint Legislative Commission of Governmental Operations concerning the progress of the programs for which funds are appropriated in subsection (a) of this section by September 1, 2011.
Update Main Street Solutions Statutes
SECTION 13.5. Part 15 of Article 10 of Chapter 143B of the General Statutes reads as rewritten:
"Part 15. Main Street Solutions.
"§ 143B‑472.35. Establishment of fund; use of funds; application for grants; disbursal; repayment; inspections; rules; reports.
(a) A fund to be known as the Main Street Solutions Fund is established in the Department of Commerce. This Fund shall be administered by the Department of Commerce. The Department of Commerce shall be responsible for receipt and disbursement of all funds as provided in this section. Interest earnings shall be credited to the Main Street Solutions Fund.
(b) Definitions. – The following definitions shall apply in this subsection:
(1) Designated Micropolitans – Those communities that are selected for participation in the Main Street Solutions Fund Program. The Main Street Solutions Program is an economic development program that provides structured planning and economic development assistance to geographic entities containing an urban core with a population of between 10,000 and 50,000 people according to the most recent U.S. Census.
(2) Tier Counties – The Department annually ranks the State's 100 counties based on economic well‑being and assigns each a Tier designation. The 40 most distressed counties are designated as Tier 1, the next 40 as Tier 2, and the 20 least distressed as Tier 3. North Carolina micropolitans located in Tier 2 and Tier 3 counties are eligible for grant funding through this program.
(3) The Main Street Program – The Main Street Program was developed by the National Trust for Historic Preservation to promote downtown revitalization based on economic development within the context of historic preservation. The Office of Urban Development, under the North Carolina Department of Commerce is the designated agency to administer this program for North Carolina.
(4) The North Carolina Main Street Center – The North Carolina Main Street Center is located within the North Carolina Department of Commerce, Office of Urban Development, and shall receive applications and make decisions respecting Main Street Solutions Fund grant applications from Eligible Local Governments.
(5) Designated North Carolina Main Street Communities – Those communities that are selected by the Department for participation in the North Carolina Main Street Program. Designated North Carolina Main Street Communities, including, but not limited to, Small Town Main Street Communities in Tier 1, 2, or 3 counties that are designated as active communities and that met the annual reporting responsibilities requirements of the North Carolina Main Street Program to be eligible for participation in the Main Street Solutions Fund.
(6) Eligible Projects – Strategic projects developed as part of a collaborative process between representatives of the Department of Commerce and the Designated Micropolitan or North Carolina Main Street Community that will strengthen the economy of the municipality and its role as a regional growth and employment hub.
(7) Designated Downtown Area – A designated area within a community that is considered the primary, traditional downtown business district of its community. A Downtown Core Area may be further defined by a municipal service district or an historic district, or can be clearly delineated through mapping as the primary downtown business district.
(8) Historic Properties – Properties that have received designation as historically significant, either through the National Register of Historic Places or a local Historic Properties Commission.
(9) Small Business – An independently owned and operated business with less than 100 employees and with annual revenues less than six million dollars ($6,000,000).
(10) Revolving Loan Programs for Private Investment – A property redevelopment or small business assistance fund that is administered on the local level and that may be used to stabilize or appropriately redevelop properties located in the downtown area in connection with private investment, or that may be used to provide necessary operating capital for small business creation or expansion in connection with private investment in a designated downtown area.
(11) Program – The Main Street Solutions Fund Program and the associated grant.
(12) Eligible Local Governments – Municipal governmental entities that are located in Designated Micropolitans or Designated North Carolina Main Street Communities.
(13) Private Investment Projects – A project or a group of projects in a designated downtown area that will spur private investment and improve property. Projects must be owned and maintained by the private sector through this program or the grant and must provide a direct benefit to small businesses.
(14) Public Improvements and Public Infrastructure – The improvement of property or infrastructure that is owned and maintained by the public sector, provided the improvements are necessary to create or stimulate private investment in the designated downtown area, through this program or the grant, with direct benefit to small businesses.
(15) Mixed‑Use Center of Activity – An area zoned and developed for a mix of uses, including retail, service, professional, governmental, institutional, and residential.
(16) Interlocal Economic Development Projects – A project or a group of projects in a cluster of communities, counties, or a region that share a common economic development strategy for small business growth and job creation.
(17) Main Street Organizations – Main Street Organizations are defined as agencies working in public‑private partnership on the local level, guided by a professional downtown manager and/or a board of directors or revitalization committee, and charged with administering the local Main Street Program initiative and facilitating revitalization initiatives in the traditional downtown business district through appropriate design, promotion, and economic restructuring activities.
(18) Downtown Organizations – Downtown Organizations are defined as agencies working in public‑private partnership on the local level whose core mission is to revitalize the traditional downtown business district.
(19) Downtown Economic Development Organizations – Downtown Economic Development Organizations are defined as agencies working in public‑private partnership to develop and recruit business opportunities or to undertake economic development projects that will create jobs.
(20) Grant – Monies awarded to eligible grantees for activities that carry out the specific purposes of the Program.
(c) Purpose of the Program. – The Program's purpose is to provide economic development planning assistance and coordinated grant support to Designated Micropolitans located in Tier 2 and Tier 3 counties and to Designated North Carolina Main Street Communities, including, but not limited to, Small Town Main Street Communities in Tier 1, 2, or 3 counties that are designated as active communities.
(d) Implementation of the Program. – To achieve the purposes of the Program, the North Carolina Main Street Center will develop criteria for community participation, provide technical assistance, and strategic planning support to eligible communities. Local governments, in collaboration with the Main Street Organization, Downtown Organization, and/or Downtown Economic Development Organization, and the small businesses that will directly benefit from these funds, may apply for grants of monies, as provided herein, to implement elements of a strategic plan developed under the Program.
(e) Grants Made Under the Program. – Monies in the Main Street Solutions Fund shall be allocated and granted by the Secretary of Commerce through the North Carolina Main Street Center and shall be spent by all grant recipients in accordance with this subsection. Such monies shall be used to implement eligible projects that support a strategic plan for Micropolitan and Main Street Community small business economic development developed with technical assistance from the Department of Commerce.
(b)(f) Funds in the Main Street Solutions
Fund shall be available to micropolitan cities in development tier two and
three counties in the State. State and/or to designated North
Carolina Main Street Communities, including, but not limited to, Small Town
Main Street Communities in Tier 1, 2, or 3 counties that are designed as active
communities. For purposes of this section, a "micropolitan city"
is a city located within the State with a population, according to the most
recent U.S. census, of between 10,000 and 50,000 people. Funds in the Main
Street Solutions Fund shall be used for any of the following eligible
activities:
(1) The acquisition or rehabilitation of
properties in connection with private investment in a designated downtown area.
(2) The establishment of revolving loan
programs for private investment in a designated downtown area.
(3) The subsidization of interest rates for
these revolving loan programs.
(4) The establishment of facade incentive
grants in connection with private investment in a designated downtown area.
(5) Market studies, design studies, design
assistance, or strategic planning efforts, provided the activity can be shown
to lead directly to private investment in a designated downtown area.
(6) Any approved project that provides
construction or rehabilitation in a designated downtown area and can be shown
to lead directly to private investment in the designated downtown area.
(7) Public improvements and public
infrastructure within a designated downtown area, provided these improvements
are necessary to create or stimulate private investment in the designated
downtown area.
(1) Downtown Economic Development Initiatives that:
a. Encourage the development and/or redevelopment of traditional downtowns in Designated Micropolitans or Designated Main Street Communities by increasing the capacity for Mixed‑Use Centers of Activity within Downtown Core Areas. Grants may be made to support the rehabilitation of properties, utility infrastructure improvements, new construction, and the development and/or redevelopment of parking in order to foster private investment and in association with direct benefit to small business retention, expansion or recruitment.
b. Attract and leverage private sector investments and entrepreneurial growth in downtown areas through strategic planning efforts, market studies, and downtown master plans in association with direct benefit to small business retention, expansion, or recruitment.
c. Attract and stimulate the growth of business professionals and entrepreneurs within Downtown Core Areas.
d. Establish Revolving Loan Programs for Private Investment and small business assistance in Downtown Historic Properties in Designated North Carolina Main Street Communities.
e. Encourage public improvements and public infrastructure within designated downtown areas so as to stimulate private investment and small business retention, expansion, or recruitment in and affecting such areas.
(2) Historic preservation initiatives outside of Downtown Core Areas that enhance community economic development and small business retention, expansion, or recruitment in Designated Micropolitans or Designated Main Street Communities and regional or community job creation.
(3) Public improvements and public infrastructure outside of Downtown Core Areas that are consistent with sound municipal planning and that support community economic development, small business retention, expansion or recruitment, and regional or community job creation in Designated Micropolitans or Designated Main Street Communities.
(4) Interlocal small business economic development projects designed to enhance regional economic growth and job creation among Designated Micropolitans and Designated Main Street Communities.
(5) Worker retraining initiatives designed to support a strategic plan for Designated Micropolitan or Designated Main Street Community small business economic development developed with technical assistance from the Department of Commerce.
(c)(g) Any micropolitan city located within
a development tier two or three county may apply for assistance from the Main
Street Solutions Fund by submitting an application to the Main Street Center in
the Division of Community Assistance, Department of Commerce. Any city
affiliated with the North Carolina Main Street Center Program may apply for a
grant for a proposed project.
(c1)(g1) The application shall include
each of the following:
(1) A copy of the consensus local economic
development plan developed by the micropolitan city in conjunction with the
Department's Main Street Program and the city's regional economic development
commission or its local council of government or both.
(1a) The proposed activities for which the funds are to be used and the projected cost of the project.
(2) The amount of grant funds requested for these activities.
(3) Projections of the dollar amount of private investment that is expected to occur in the designated downtown area as a direct result of the city's proposed activities.
(4) Whether local public dollars are required
to match any grant funds according to the provisions of subdivision (g)(2) of
this section, and if so, the amount of local public funds required.
(5) An explanation of the nature of the private investment in the designated downtown area that will result from the city's proposed activities.
(6) Projections of the time needed to complete the city's proposed activities.
(7) Projections of the time needed to realize the private investment that is expected to result from the city's proposed activities.
(8) Identification of the proposed source of
funds to be used for repayment of any loan obligations.
(9) Any additional or supplemental information requested by the Division.
(d) A committee, comprised of
representatives of: the Division of Community Assistance of the Department of
Commerce, the North Carolina Main Street Program, the Local Government
Commission, and the League of Municipalities shall do each of the following:
(1) Review a city's application.
(2) Determine whether the activities listed
in the application are activities that are eligible for a grant.
(3) Determine which applicants are selected
to receive funds from the Main Street Solutions Fund.
(h) A city whose application is denied may file a new or amended application.
(e) A Main Street City that is selected may
not receive a grant pursuant to this section totaling less than twenty thousand
dollars ($20,000) or more than three hundred thousand dollars ($300,000).
(f)(i) Repealed by Session Laws 2009‑451,
s. 14.10, effective July 1, 2009.
(g)(j) (1) A
city that has been selected to receive a grant shall use the full amount of the
grant for the activities that were approved pursuant to subsection (d) of this
section. Funds are deemed used if the city is legally committed to spend the
funds on the approved activities.
(2) If a city has received approval to use the grant
for public improvements or public infrastructure, that city shall be required
to raise, before funds for these public improvements may be drawn from the city's
account, local public funds to match the amount of the grant from the Main
Street Solutions Fund on the basis of at least one local public dollar ($1.00)
for every one dollar ($1.00) from the Main Street Solutions Fund. This match
requirement applies only to those funds received for public improvements or
public infrastructure and is in addition to the requirement set forth in
subdivision (1) of this subsection.The Main Street Solutions Fund is a
reimbursable, matching grant program. The Department of Commerce and the North
Carolina Main Street Center are authorized to award grants totaling not more
than two hundred thousand dollars ($200,000) to Eligible Local Governments and
the Main Street Organization, Downtown Organization, and/or Downtown Economic
Development Organization, and the small businesses that will directly benefit
from these funds. Funds from Eligible Local Governments, Main Street
Organization, Downtown Organization, and/or Downtown Economic Development
Organization, and sources other than the State or federal government must be
committed to match the amount of any grant from the Main Street Solutions Fund
on the basis of a minimum of two non‑State dollars ($2.00) for every one
dollar ($1.00) provided by the State from the Main Street Solutions Fund.
(3) A city that fails to satisfy the condition set forth in subdivision (1) of this subsection shall lose any funds that have not been used within three years of being selected. These unused funds shall be credited to the Main Street Solutions Fund. A city that fails to satisfy the conditions set forth in subdivisions (1) and (2) of this subsection may file a new application.
(4) Any funds repaid or credited to the Main Street Solutions Fund pursuant to subdivision (3) of this subsection shall be available to other applicants as long as the Main Street Solutions Fund is in effect.
(h) Repealed by Session Laws 2009‑451,
s. 14.10, effective July 1, 2009.
(i)(k) After a project financed in whole
or in part pursuant to this section has been completed, the city shall
report the actual cost of the project to the Department of Commerce. If the
actual cost of the project exceeds the projected cost upon which the grant was
based, the city may submit an application to the Department of Commerce for a
grant for the difference. If the actual cost of the project is less than the
projected cost, the city shall arrange to pay the difference to the Main Street
Solutions Fund according to terms set by the Department.
(j)(l) Inspection of a project for which a
grant has been awarded may be performed by personnel of the Department of
Commerce. No person may be approved to perform inspections who is an officer or
employee of the unit of local government to which the grant was made or who is
an owner, officer, employee, or agent of a contractor or subcontractor engaged
in the construction of any project for which the grant was made.
(k)(m) The Department of Commerce may adopt,
modify, and repeal rules establishing the procedures to be followed in the
administration of this section and regulations interpreting and applying the
provisions of this section, as provided in the Administrative Procedure Act.
(l)(n) The Department of Commerce and
cities that have been selected to receive a grant from the Main Street
Solutions Fund shall prepare and file on or before September 1 of each year
with the Joint Legislative Commission on Governmental Operations and the Fiscal
Research Division a consolidated report for the preceding fiscal year
concerning the allocation of grants authorized by this section.
The portion of the annual report prepared by the Department of Commerce shall set forth for the preceding fiscal year itemized and total allocations from the Main Street Solutions Fund for grants. The Department of Commerce shall also prepare a summary report of all allocations made from the fund for each fiscal year; the total funds received and allocations made and the total unallocated funds in the Fund.
The portion of the report prepared by the city shall include each of the following:
(1) The total amount of private funds that was committed and the amount that was invested in the designated downtown area during the preceding fiscal year.
(2) The total amount of local public matching
funds that was raised, if required by subdivision (g)(2) of this section.
(3) The total amount of grants received from the Main Street Solutions Fund during the preceding fiscal year.
(4) Repealed by Session Laws 2009‑451,
s. 14.10, effective July 1, 2009.
(5) A description of how the grant funds and funds from private investors were used during the preceding fiscal year.
(6) Details regarding the types of private investment created or stimulated, the dates of this activity, the amount of public money involved, and any other pertinent information, including any jobs created, businesses started, and number of jobs retained due to the approved activities.
(m)(o) The Department of Commerce may use up
to fifty thousand dollars ($50,000) of the funds in the Main Street Solutions
Fund for expenses related to the administration of the Fund."
PART XIV. JUDICIAL DEPARTMENT
COLLECTION OF WORTHLESS CHECK FUNDS
SECTION 14.1. Notwithstanding the provisions of G.S. 7A‑308(c), the Judicial Department may use any balance remaining in the Collection of Worthless Checks Fund on June 30, 2010, for the purchase or repair of office or information technology equipment during the 2010‑2011 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 House of Representatives and Senate Appropriations Subcommittees on Justice and Public Safety on the equipment to be purchased or repaired and the reasons for the purchases.
INCREASE CERTAIN COURT FEES
SECTION 14.2.(a) G.S. 7A‑304(a)(4) reads as rewritten:
"(4) For support of the General Court of Justice,
the sum of ninety‑five dollars and fifty cents ($95.50)one
hundred three dollars and fifty cents ($103.50) in the district court,
including cases before a magistrate, and the sum of one hundred two dollars
and fifty cents ($102.50)one hundred fifteen dollars and fifty cents
($115.50) 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 two dollars and
five cents ($2.05) of each fee collected under this subdivision to the North
Carolina State Bar for the provision of services described in G.S. 7A‑474.4,
and ninety‑five cents ($.95) of each fee collected under this subdivision
to the North Carolina State Bar for the provision of services described in G.S. 7A‑474.19."
SECTION 14.2.(b) G.S. 7A‑304(a)(6) reads as rewritten:
"(6) For support of the General Court of Justice,
the sum of two hundred dollars ($200.00) is payable by a defendant who fails to
appear to answer the charge as scheduled, unless within 20 days after the
scheduled appearance, the person either appears in court to answer the charge
or disposes of the charge pursuant to G.S. 7A‑146, and the sum of twenty‑five
dollars ($25.00)fifty dollars ($50.00) is payable by a defendant who
fails to pay a fine, penalty, or costs within 20 days of the date specified in
the court's judgment. 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 the fee for failure to
appear. These fees shall be remitted to the State Treasurer."
SECTION 14.2.(c) G.S. 7A‑305(a)(2) reads as rewritten:
"(2) For support of the General Court of Justice,
the sum of ninety‑three dollars ($93.00)one hundred thirty
dollars ($130.00) in the superior court, except that if a case is assigned
to a special superior court judge as a complex business case under G.S. 7A‑45.3,
an additional one thousand dollars ($1,000) shall be paid upon its assignment,
and the sum of seventy‑three dollars ($73.00)seventy‑eight
dollars ($78.00) in the district court except that if the case is assigned
to a magistrate the sum shall be fifty‑five dollars ($55.00). Sums
collected under this subdivision shall be remitted to the State Treasurer. The
State Treasurer shall remit the sum of two dollars and five cents ($2.05) of
each fee collected under this subdivision to the North Carolina State Bar for
the provision of services described in G.S. 7A‑474.4, and ninety‑five
cents ($.95) of each fee collected under this subdivision to the North Carolina
State Bar for the provision of services described in G.S. 7A‑474.19."
SECTION 14.2.(d) G.S. 7A‑305(a2) reads as rewritten:
"(a2) In every action for absolute divorce filed in
the district court, a cost of seventy‑five dollars ($75.00)one
hundred dollars ($100.00) shall be assessed against the person filing the
divorce action. Costs collected by the clerk pursuant to this subsection shall
be remitted to the State Treasurer, who shall deposit fifty‑five dollars
($55.00) to the North Carolina Fund for Displaced Homemakers established under G.S. 143B‑394.10
and twenty dollars ($20.00) to the Domestic Violence Center Fund established
under G.S. 50B‑9. The remainder shall be deposited in the General
Fund as a nontax revenue. Costs assessed under this subsection shall be in
addition to any other costs assessed under this section."
SECTION 14.2.(e) G.S. 7A‑307(b1) reads as rewritten:
"(b1) The clerk shall assess the following miscellaneous fees:
(1) Filing and indexing a will with no probate
– first page.............................................................................................. $ 1.00
– each additional page or fraction thereof....................................................... .25
(2) Issuing letters to fiduciaries, per letter over five letters issued......................... 1.00
(3) Inventory of safe deposits of a decedent, per box, per day.......................... 15.00
(4) Taking a deposition.................................................................................... 10.00
(5) Docketing and indexing a will probated in another county in the State
‑ first page................................................................................................... 6.00
‑ each additional page or fraction thereof........................................................ .25
(6) Hearing petition for year's allowance to surviving spouse or child, in cases not assigned to a magistrate, and allotting the same............................................................... 8.00
(7) Assignment of title...................................................................................... 10.00."
SECTION 14.2.(f) G.S. 7A‑305 is amended by adding a new subsection to read:
"(a5) For the support of the General Court of Justice, a fee of forty dollars ($40.00) shall be assessed against a party filing a motion for summary judgment pursuant to G.S. 1A‑1, Rule 56.
Sums collected under this subsection shall be remitted to the State Treasurer."
RECOUP COSTS OF CERTAIN COURT CASES FROM HIGHWAY FUNDS
SECTION 14.3. G.S. 7A‑300 is amended by adding a new subsection to read:
"(c) To defray the expenses associated with the processing of cases initiated by the State Highway Patrol, there shall be transferred monthly from the Highway Fund fifteen dollars ($15.00) per case for which the State Highway Patrol is the initiating law enforcement agency. These funds shall be transferred to the General Fund for the support of the General Court of Justice. The Administrative Office of the Courts shall provide monthly notification to the Highway Fund of the number of cases initiated by the State Highway Patrol in the preceding month for determination of the amount to be transferred, and the funds shall be transferred no later than 30 days after notification by the Administrative Office of the Courts."
BOND FORFEITURE SET ASIDE PROCESSING FEE
SECTION 14.4.(a) G.S. 15A‑544.5(c) reads as rewritten:
"(c) Procedure When Failure to Appear Is Stricken. – If the court before which a defendant's appearance was secured by a bail bond enters an order striking the defendant's failure to appear and recalling any order for arrest issued for that failure to appear, that court may simultaneously enter an order setting aside any forfeiture of that bail bond. If the court enters an order setting aside a forfeiture of bail bond under this subsection, the court also shall assess a fee against the defendant pursuant to subsection (i) of this section. When an order setting aside a forfeiture is entered, the defendant's further appearances shall continue to be secured by that bail bond unless the court orders otherwise."
SECTION 14.4.(b) G.S. 15A‑544.5 is amended by adding a new subsection to read:
"(i) Fee. – If the court enters an order to set aside a forfeiture of bail bond pursuant to subsection (c) of this section, the court shall, upon conviction, impose a processing fee of fifty dollars ($50.00) against the defendant, if the notice of forfeiture was given pursuant to G.S. 15A‑544.4 prior to entry of the order setting the forfeiture aside. Upon a showing to the court that the failure to appear underlying the forfeiture was due to an error or omission of a judicial official, a prosecutor, or a law enforcement officer, or that the forfeiture was otherwise issued in error, the court shall waive this fee. The fee shall be collected in addition to other costs as provided in G.S. 7A‑304(c) and shall be remitted to the State Treasurer to be used for support of the General Court of Justice."
PART XV. DEPARTMENT OF JUSTICE
SAFE COMMUNITIES: FELONY ARRESTEE DNA FORENSIC STAFFING & OPERATIONS
SECTION 15.1. G.S. 7A‑304(a) is amended by adding a new subdivision to read:
"(3c) For the scientific analysis of DNA and bodily fluids and associated services, staffing and operations of the North Carolina State Bureau of Investigation Crime Laboratory, the sum of three dollars ($3.00) shall be remitted to the Department of Justice."
SEAT BELT USE MANDATORY
SECTION 15.2. G.S. 20‑135.2A(e) reads as rewritten:
"(e) Any driver or front seat passenger who fails
to wear a seat belt as required by this section shall have committed an
infraction and shall pay a penalty of twenty‑five dollars and fifty
cents ($25.50) plus the following court costs: the General Court of Justice
fee provided for in G.S. 7A‑304(a)(4), the telephone facilities fee
provided for in G.S. 7A‑304(a)(2a), and the law enforcement
training and certification fee provided for in G.S. 7A‑304(a)(3b).G.S. 7A‑304(a)(3b),
and the scientific analysis of DNA and bodily fluids fee provided for in G.S. 7A‑304(a)(3c).
Any rear seat occupant of a vehicle who fails to wear a seat belt as required
by this section shall have committed an infraction and shall pay a penalty of
ten dollars ($10.00) and no court costs. Court costs assessed under this
section are for the support of the General Court of Justice and shall be
remitted to the State Treasurer. Conviction of an infraction under this section
has no other consequence."
PART XVI. DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION
ANNUAL EVALUATION OF COMMUNITY PROGRAMS
SECTION 16.1. Section 18.1 of S.L. 2009‑451 reads as rewritten:
"SECTION 18.1. The Department of Juvenile Justice
and Delinquency Prevention shall conduct an evaluation of the Eckerd and
Camp Woodson wilderness camp programsprogram and of
multipurpose group homes.
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 also shall identify whether the programs are achieving the goals and objectives of the Juvenile Justice Reform Act, S.L. 1998‑202. The Department shall report the results of the evaluation to 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 Subcommittees on Justice and Public Safety of the Senate and House of Representatives Appropriations Committees by March 1 of each year."
STATE FUNDS MAY BE USED AS FEDERAL MATCHING FUNDS
SECTION 16.2. Funds appropriated in this act to the Department of Juvenile Justice and Delinquency Prevention for the 2010‑2011 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 2010‑2011 fiscal year, the amount of funds anticipated for the 2010‑2011 fiscal year, and the allocation of funds by program and purpose.
REPEAL TREATMENT STAFFING MODEL AT YOUTH DEVELOPMENT CENTERS
SECTION 16.3. Section 18.4 of S.L. 2009‑451 is repealed.
PART XVII. DEPARTMENT OF CORRECTION
USE OF CLOSED PRISON FACILITIES
SECTION 17.1. Section 19.4(a) of S.L. 2009‑451 is repealed.
FEDERAL GRANT MATCHING FUNDS
SECTION 17.2. Notwithstanding the provisions of G.S. 143C‑6‑9, the Department of Correction may use up to the sum of one million two hundred thousand dollars ($1,200,000) during the 2010‑2011 fiscal year 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 House of Representatives and Senate Appropriations Subcommittees on Justice and Public Safety and the Joint Legislative Commission on Governmental Operations on the grants to be matched using these funds.
REPORTS ON NONPROFIT PROGRAMS
SECTION 17.3. Section 19.10 of S.L. 2009‑451 is repealed.
INCREASE FEE FOR COMMUNITY SERVICE WORK PROGRAM
SECTION 17.4.(a) G.S. 143B‑262.4(b) reads as rewritten:
"(b) A fee of two hundred twenty‑five
dollars ($225.00)three hundred dollars ($300.00) shall be paid by
all persons who participate in the program or receive services from the program
staff. Only one fee may be assessed for each sentencing transaction, even if the
person is assigned to the program on more than one occasion, or while on
deferred prosecution, or while serving a sentence for the offense. A sentencing
transaction shall include all offenses considered and adjudicated during the
same term of court. Fees collected pursuant to this subsection shall be
deposited in the General Fund. If the person is convicted in a court in this
State, the fee shall be paid to the clerk of court in the county in which the
person is convicted, regardless of whether the person is participating in the
program as a condition of probation imposed by the court or pursuant to the
exercise of authority delegated to the probation officer pursuant to G.S. 15A‑1343.2(e)
or (f). If the person is participating in the program as a result of a deferred
prosecution or similar program, the fee shall be paid to the clerk of court in
the county in which the agreement is filed. If the person is participating in
the program as a condition of parole, the fee shall be paid to the clerk of the
county in which the person is released on parole. Persons participating in the
program for any other reason shall pay the fee to the clerk of court in the
county in which the services are provided by the program staff. The fee shall
be paid in full before the person may participate in the community service
program, except that:
(1) A person convicted in a court in this State may be given an extension of time or allowed to begin the community service before the person pays the fee by the court in which the person is convicted; or
(2) A person performing community service pursuant to a deferred prosecution or similar agreement may be given an extension of time or allowed to begin community service before the fee is paid by the official or agency representing the State in the agreement.
(3) A person performing community service as a condition of parole may be given an extension of time to pay the fee by the Post‑Release Supervision and Parole Commission. No person shall be required to pay the fee before beginning the community service unless the Commission orders the person to do so in writing.
(4) A person performing community service as ordered by a probation officer pursuant to authority delegated by G.S. 15A‑1343.2 may be given an extension of time to pay the fee by the probation officer exercising the delegated authority."
SECTION 17.4.(d) This section applies to persons ordered on or after July 1, 2010, to perform community service.
INCREASE FEES FOR PROBATION, PAROLE, AND POST‑RELEASE SUPERVISION
SECTION 17.5.(a) G.S. 15A‑1343(c1) reads as rewritten:
"(c1) Supervision Fee. – Any person placed on
supervised probation pursuant to subsection (a) of this section shall pay a
supervision fee of thirty dollars ($30.00)forty dollars ($40.00)
per month, unless exempted by the court. The court may exempt a person from
paying the fee only for good cause and upon motion of the person placed on
supervised probation. No person shall be required to pay more than one
supervision fee per month. The court may require that the fee be paid in
advance or in a lump sum or sums, and a probation officer may require payment
by such methods if he is authorized by subsection (g) to determine the payment
schedule. Supervision fees must be paid to the clerk of court for the county in
which the judgment was entered or the deferred prosecution agreement was filed.
Fees collected under this subsection shall be transmitted to the State for
deposit into the State's General Fund."
SECTION 17.5.(b) G.S. 15A‑1374(c) reads as rewritten:
"(c) Supervision Fee. – The Commission must
require as a condition of parole that the parolee pay a supervision fee of thirty
dollars ($30.00)forty dollars ($40.00) per month. The Commission may
exempt a parolee from this condition of parole only if it finds that requiring
him to pay the fee will constitute an undue economic burden. The fee must be
paid to the clerk of superior court of the county in which the parolee was
convicted. The clerk must transmit any money collected pursuant to this
subsection to the State to be deposited in the general fund of the State. In no
event shall a person released on parole be required to pay more than one
supervision fee per month."
SECTION 17.5.(c) G.S. 15A‑1368.4(f) reads as rewritten:
"(f) Required Supervision Fee. – The Commission
shall require as a condition of post‑release supervision that the
supervisee pay a supervision fee of thirty dollars ($30.00)forty
dollars ($40.00) per month. The Commission may exempt a supervisee from
this condition only if it finds that requiring payment of the fee is an undue
economic burden. The fee shall be paid to the clerk of superior court of the
county in which the supervisee was convicted. The clerk shall transmit any
money collected pursuant to this subsection to the State to be deposited in the
State's General Fund. In no event shall a supervisee be required to pay more
than one supervision fee per month."
SECTION 17.5.(d) This section shall become effective July 1, 2010, and shall apply to all persons on supervised probation, parole, and post‑release prior to that date and to all persons placed on supervised probation, parole, and post‑release on or after that date.
INMATE MEDICAL COST CONTAINMENT
SECTION 17.6.(a) The Department of Correction shall establish a fee schedule for health care services provided to those inmates committed to its custody. The fee schedule will represent one hundred thirty percent (130%) of the reimbursable cost for each service under the Medicare Fee Schedule. Providers and facilities that deliver medically necessary services to inmates in the Department's custody shall be paid in accordance with the fee schedule established under the terms of this subsection. The requirements of this subsection shall apply to all medical and facility services provided outside the correctional facility, including hospitalizations, professional services, medical supplies, and other medications provided to any inmate confined in a correctional facility.
SECTION 17.6.(b) The Department of Correction shall make every effort to contain inmate medical costs by making use of its own hospital and health care facilities to provide health care services to inmates. To the extent that the Department of Correction must utilize other facilities and services to provide health care services to inmates, the Department shall make use of hospitals with available capacity or other health care facilities in a region to accomplish that goal. The Department shall work to ensure that care usage is distributed equitably among all hospitals or other appropriate health care facilities, with no one health care facility being required to admit more than twenty percent (20%) of all patients requiring hospitalization or hospital services, unless doing so would jeopardize the health of the inmate. The Department shall also give preference to those hospitals in the same county or an adjoining county to the correctional facility where an inmate requiring hospitalization is incarcerated.
SECTION 17.6.(c) The Department of Correction shall consult with the Division of Medical Assistance in the Department of Health and Human Services to develop protocols for prisoners who would otherwise be eligible for Medicaid if they were not incarcerated to access Medicaid while in custody or under extended limits of confinement. The Department shall seek reimbursement from Medicaid for those health care costs incurred by the Department in those instances when an inmate has had his or her Medicaid eligibility temporarily reinstated due to a hospitalization.
SECTION 17.6.(d) The Department of Correction, in consultation with the Office of State Budget and Management, shall study the impact on inmate medical costs resulting from the measures set forth in subsections (a), (b), and (c) of this section. The Department shall present its findings by March 1, 2011, to the chairs of the House of Representatives and Senate Appropriations Subcommittees on Justice and Public Safety and to the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee.
SECTION 17.6.(e) If the findings of the Department of Correction demonstrate that the Department has been unable to achieve the savings in inmate medical costs called for in the 2010‑2011 budget, the Office of State Budget and Management is authorized to require that any hospital that provides health care services to Medicaid and Medicare patients must also provide services to any inmate confined in a correctional facility at the rates applicable under subsection (a) of this section.
SECTION 17.6.(f) The Department of Correction shall make every effort to explore other cost containment methods not expressly outlined in this section. These methods may included but are not limited to the following: contracting with a private third party to manage and provide all inmate medical services; partnering with the federal government to allow for treatment of state inmates in federal correctional hospitals; and purchasing a fixed number of beds at a hospital.
PART XVIII. DEPARTMENT OF ADMINISTRATION
SMALL BUSINESS PROTECTION ACT
SECTION 18.1. Section 28.16.(g) of S.L. 2008‑107 is repealed.
PART XIX. DEPARTMENT OF REVENUE
DISTRIBUTION OF ADDITIONAL TAXES
SECTION 19.1. G.S. 105‑501 reads as rewritten:
"§ 105‑501. (Effective October 1, 2009) Distribution of additional taxes.
(a) Method. – The Secretary must, on a monthly basis, allocate to each taxing county the net proceeds of the additional one‑half percent (1/2%) sales and use taxes collected in that county under this Article. If the Secretary collects taxes under this Article in a month and the taxes cannot be identified as being attributable to a particular taxing county, the Secretary must allocate the net proceeds of these taxes among the taxing counties in proportion to the amount of taxes collected in each county under this Article in that month.
The Secretary must divide and distribute the funds allocated to a taxing county each month under this section between the county and the municipalities located in the county in accordance with the method by which the one percent (1%) sales and use taxes levied in that county pursuant to Article 39 of this Chapter or Chapter 1096 of the 1967 Session Laws are distributed. No municipality may receive any funds under this section if it was incorporated with an effective date of on or after January 1, 2000, and is disqualified from receiving funds under G.S. 136‑41.2. No municipality may receive any funds under this section, incorporated with an effective date on or after January 1, 2000, unless a majority of the mileage of its streets are open to the public.
(b) Deductions. – In determining the net proceeds of
the tax to be distributed, the Secretary must deduct from the collections to be
allocated an amount equal to one‑twelfth of the costs during the
preceding fiscal year of:the following amounts:
(1) The Department of Revenue in performing the
duties imposed by G.S. 105‑275.2 and by Article 15 of this Chapter.An
amount equal to one‑twelfth of the cost during the preceding year of the
following:
(1a)a. Seventy percent (70%) of the expenses of
the Department of Revenue in performing the duties imposed by Article 2D of
this Chapter.
(2) The Property Tax Commission.
(3)b. The School of Government at the
University of North Carolina at Chapel Hill in operating a training program in
property tax appraisal and assessment.
(4)c. The personnel and operations provided
by the Department of State Treasurer for the Local Government Commission.
(2) An amount equal to the cost during the preceding month of the following:
a. The Department of Revenue in performing the duties imposed by Article 15 of this Chapter.
b. The Property Tax Commission
For fiscal year 2010‑2011, the deductions under G.S. 105‑501(b) include one‑twelfth of the costs during the preceding fiscal year."
PART XX. OFFICE OF THE GOVERNOR
TRANSFER OF YOUTH ADVOCACY AND INVOLVEMENT FUNCTIONS TO THE OFFICE OF THE GOVERNOR AND THE STATE BOARD OF EDUCATION
SECTION 20.1.(a) Effective July 1, 2010, the State Youth Advisory Council, the State Youth Council, the Governor's Advocacy Council on Children and Youth, the North Carolina Internship Council, and the North Carolina Youth Advocacy and Involvement Fund are hereby transferred by a Type I transfer, as defined in G.S. 143B‑385, 143B‑387, 143B‑414, 143B‑417, and 143B 387.1, from the Department of Administration to the Office of the Governor. The program transfer shall include the sum of five hundred five thousand two hundred eighty‑four dollars ($505,284) and five positions.
SECTION 20.1.(b) Effective July 1, 2010, the Students Against Destructive Decisions program is hereby transferred by a Type I transfer from the Department of Administration to the State Board of Education. The program transfer shall include the sum of one hundred thirteen thousand eight hundred fifty‑three dollars ($113,853) and two positions.
SECTION 20.1.(c) G.S. 143B‑385 reads as rewritten:
"§ 143B‑385. State Youth Advisory Council – creation; powers and duties.
There is hereby created the State Youth Advisory Council of
the Department of Administration.Office of the Governor. The
State Youth Advisory Council shall have the following functions and duties:
(1) To advise the youth councils of North Carolina;
(2) To encourage State and local councils to take active part in governmental and civic affairs, promote and participate in leadership and citizenship programs, and cooperate with other youth‑oriented groups;
(3) To receive on behalf of the Department of
Administration Office of the Governor and to recommend expenditure
of gifts and grants from public and private donors;
(4) To establish procedures for the election of its youth representatives by the State Youth Council; and
(5) To advise the Secretary of Administration Governor's
Chief of Staff upon any matter the Secretary Governor may
refer to it."
SECTION 20.1.(d) G.S. 143B‑387.1 reads as rewritten:
"§ 143B-387.1. North Carolina Youth Advocacy and Involvement Fund.
The North Carolina Youth Advocacy and Involvement Fund is created as a special and nonreverting fund. Conference registration fees, gifts, donations, or contributions to or for the North Carolina Youth Legislative Assembly (YLA) and the North Carolina Students Against Destructive Decisions (SADD) programs shall be credited to the Fund.
The Fund shall be used solely to support planning and
execution of the YLA and SADD programs. The Department Office of the
Governor shall maintain separate cost centers for each program.program
and transfer funds to the State Board of Education for administration of the
SADD program as necessary."
SECTION 20.1.(e) G.S. 143B‑414 reads as rewritten:
"§ 143B‑414. Governor's Advisory Council on Children and Youth – creation; powers and duties.
There is hereby created the Governor's Advocacy Council on
Children and Youth of the Department of Administration.Office of the
Governor. The Council shall have the following functions and duties:
(1) To act as an advocate for children and youth within State and local governments, and with private agencies serving children and youth;
(2) To provide assistance in the development and coordination of child advocacy systems at the regional and local levels within the State;
(3) To perform a continuing review of existing programs of State government for children and youth and their families;
(4) To, in cooperation with State, local or private agencies, identify needs of children and youth and their families that are not currently being met and recommend new programs or improvement of existing programs;
(5) To review any new programs affecting children and youth proposed by any State agency and recommend changes to avoid duplication of services, to promote better planning, or otherwise to make more effective use of available resources;
(6) To meet at least annually with the Governor and present a written report concerning the health and well‑being of North Carolina's children and the effectiveness of current programs and the need for new programs for children and youth;
(7) To provide information to the general public and State, local and private agencies serving children and youth and their families concerning the activities and findings of the Council; and
(8) To perform other advisory functions assigned by the
Secretary of AdministrationGovernor's Chief of Staff or a
legislative committee."
SECTION 20.1.(f) G.S. 143B‑417 reads as rewritten:
"§ 143B‑417. North Carolina Internship Council – creation; powers and duties.
There is hereby created the North Carolina Internship Council
of the Department of Administration.Office of the Governor. The
North Carolina Internship Council shall have the following functions and
duties:
(1) To determine the number of student interns to be allocated to each of the following offices or departments:
a. Office of the Governor
b. Department of Administration
c. Department of Correction
d. Department of Cultural Resources
e. Department of Revenue
f. Department of Transportation
g. Department of Environment and Natural Resources
h. Department of Commerce
i. Department of Crime Control and Public Safety
j. Department of Health and Human Services
k. Office of the Lieutenant Governor
l. Office of the Secretary of State
m. Office of the State Auditor
n. Office of the State Treasurer
o. Department of Public Instruction
p. Repealed by Session Laws 1985, c. 757, s. 162.
q. Department of Agriculture and Consumer Services
r. Department of Labor
s. Department of Insurance
t. Office of the Speaker of the House of Representatives
u. Justices of the Supreme Court and Judges of the Court of Appeals
v. Community Colleges System Office
w. Office of State Personnel
x. Office of the Senate President Pro Tempore
y. Department of Juvenile Justice and Delinquency Prevention
z. Administrative Office of the Courts
aa. State Ethics Commission
bb. Employment Security Commission
cc. State Board of Elections
dd. Department of Justice
(2) To screen applications for student internships and select from these applications the recipients of student internships; and
(3) To determine the appropriateness of proposals for projects for student interns submitted by the offices and departments enumerated in subdivision (1) of this section."
AMEND North Carolina Housing Finance Agency STATUTE
SECTION 20.2.(a) G.S.122A‑2 reads as rewritten:
"§ 122A‑2. Legislative findings and purposes.
The General Assembly hereby finds and declares that as a result of the spread of slum conditions and blight to formerly sound urban and rural neighborhoods and as a result of actions involving highways, public facilities and urban renewal activities there exists in the State of North Carolina a serious shortage of decent, safe and sanitary residential housing available at low prices or rentals to persons and families of lower income. This shortage is severe in certain urban areas of the State, is especially critical in the rural areas, and is inimical to the health, safety, welfare and prosperity of all residents of the State and to the sound growth of North Carolina communities.
The General Assembly hereby finds and declares further that private enterprise and investment have not been able to produce, without assistance, the needed construction of decent, safe and sanitary residential housing at low prices or rentals which persons and families of lower income can afford, or to achieve the urgently needed rehabilitation of much of the present lower income housing. It is imperative that the supply of residential housing for persons and families of lower income affected by the spread of slum conditions and blight and for persons and families of lower income displaced by public actions or natural disaster be increased; and that private enterprise and investment be encouraged to sponsor, build and rehabilitate residential housing for such persons and families, to help prevent the recurrence of slum conditions and blight and assist in their permanent elimination throughout North Carolina.
The General Assembly hereby finds and declares further that the purposes of this Chapter are to provide financing for residential housing construction, new or rehabilitated, for sale or rental to persons and families of lower income.
The General Assembly hereby finds and declares further that
in accomplishing this purpose, the North Carolina Housing Finance Agency, a
public agency corporation and an instrumentality of the State, is
acting in all respects for the benefit of the people of the State in the
performance of essential public functions and serves a public purpose in
improving and otherwise promoting their health, welfare and prosperity, and
that the North Carolina Housing Finance Agency, is empowered to act on behalf
of the State of North Carolina and its people in serving this public purpose
for the benefit of the general public.
The General Assembly hereby further finds and declares that it shall be the policy of said Agency, whenever feasible, to give first priority in its programs to assisting persons and families of lower income in the purchase and rehabilitation of residential housing, and to undertake its programs in the areas where the greatest housing need exists, and to give priority to projects and individual units which conform to sound principles and practices of comprehensive land use and environmental planning, regional development planning and transportation planning as established by units of local government and regional organizations having jurisdiction over the area within which such projects and units are to be located if such government agencies exist in an area under consideration. However, no area of need shall be penalized because government planning agencies do not exist in such areas.
The General Assembly hereby also further finds and declares that private enterprise and investment have not been able to provide, without assistance, the needed installation of energy saving materials in owner occupied residences of persons and families of lower income. It is imperative for the health, safety and welfare of these persons and the general public that their residences be suitably heated at affordable cost in order to provide decent housing; and that the consumption of nonrenewable sources of energy be reduced. Therefore, the General Assembly finds that one of the purposes of this Chapter is to assist persons and families of lower income to obtain loans for the purpose of heating their homes at affordable cost and at the same time to significantly reduce the amount of consumption of nonrenewable sources of energy."
SECTION 20.2.(b) G.S.122A‑4(a) reads as rewritten:
"(a) There is hereby created a body politic and
corporate to be known as "North Carolina Housing Finance Agency"
which shall be constituted a public agency corporation of the State,
having a distinct legal existence from the State, with the politic and
corporate powers as are set forth in this Chapter. The corporation is
constituted a public and an instrumentality of the State for the
performance of essential public functions, and the corporation is vested
with all of the powers, authority, rights, privileges, and titles that may be
necessary to enable it to accomplish its purposes under this chapter. The
powers conferred by this Chapter shall be deemed and held to be the performance
of an essential government function of the State."
PART XXI. DEPARTMENT OF TRANSPORTATION
MOBILITY FUND ESTABLISHED
SECTION 21.1.(a) Chapter 136 of the General Statutes is amended by adding a new Article to read:
"Article 14A.
"North Carolina Mobility Fund.
"§136‑181.1. Creation of the North Carolina Mobility Fund within the Highway Trust Fund.
(a) A special account designated as the North Carolina Mobility Fund is hereby created within the North Carolina Highway Trust Fund within the State treasury, to which certain Highway Use Tax proceeds and certain registration fees shall be deposited. This account shall be held separate and apart from funds deposited to the Highway Trust Fund pursuant to G.S. 136‑176(a). The amounts deposited to the North Carolina Mobility Fund shall be deposited, applied, and used as provided in this Article, notwithstanding any provision of Article 14 to the contrary. Notwithstanding any other provision of law, the provisions of G.S. 136‑17.2A shall not apply to the application of the North Carolina Mobility Fund.
(b) Amounts deposited in the North Carolina Mobility Fund are to be appropriated as follows:
(1) There shall be appropriated an amount equal to six and one‑half percent (6 ½%) of the amount collected annually to be used for distribution in accordance with G.S.136‑41.1.
(2) There shall be appropriated to the Department of Transportation the sum of thirty million dollars ($30,000,000) annually to be used for interstate route maintenance and preservation.
(3) Of the funds remaining in the account, the Department of Transportation shall fund transportation projects to relieve congestion and enhance mobility.
(4) The Department may issue debt‑financing instruments to finance highway projects using North Carolina Mobility Fund fee revenue equal to the amount allocated in this section to expedite the delivery of strategic congestion and mobility projects. These bonds shall be issued by the State Treasurer on behalf of the Department and shall be issued pursuant to an order adopted by the Council of State under G.S. 159‑88. The State Treasurer shall develop and adopt appropriate debt instruments, consistent with the terms of the State and Local Government Revenue Bond Act, Article 5 of Chapter 159 of the General Statutes, for use under this subdivision. Notes issued under the provisions of this subdivision may not be deemed to constitute a debt or liability of the State or of any political subdivision thereof, or a pledge of the full faith and credit of the State or of any political subdivision thereof, but shall be payable solely from the funds and revenues pledged therefor. All the notes shall contain on their face a statement to the effect that the State of North Carolina shall not be obligated to pay the principal or the interest on the notes, except from the North Carolina Mobility Fund fee revenues as shall be provided by the documents governing the revenue note issuance, and that neither the faith and credit nor the taxing power of the State of North Carolina or any of its political subdivisions is pledged to the payment of the principal or interest on the notes. The issuance of notes under this section shall not directly or indirectly or contingently obligate the State or any of its political subdivisions to levy or to pledge any form of taxation whatever or to make any appropriation for their payment.
(c) The initial project funded from this North Carolina Mobility Fund shall be the widening and improvement of Interstate 85 north of the Yadkin River Bridge.
(d) Projects to relieve congestion and enhance mobility which are funded pursuant to subdivision (b)(3) of this section shall be selected by the Department using a selection process. By January 1, 2012, the Department shall develop a project criteria and selection process through stakeholder and public involvement that shall include, but not be limited to, the North Carolina Association of Municipal Planning Organizations, the North Carolina Association of Rural Planning Organizations, the North Carolina League of Municipalities, the North Carolina Association of County Commissioners, the North Carolina Metropolitan Mayors Coalition, and the North Carolina Council of Regional Governments. The Department shall report quarterly to the Governor and the General Assembly on its progress and present a final report prior to approval by the Board of Transportation."
SECTION 21.1.(b) The provisions of Chapter 692, section 8.4 of the 1989 Session Laws, as amended by Chapter 590, section 7 of the 1995 Session Laws, and as further amended by Session Laws 1999‑380, section 3, regarding the repeal of the Highway Trust Fund upon the occurrence of the events described therein shall not apply to the North Carolina Mobility Fund created hereunder or the deposit of funds thereto. Nothing contained in this section shall otherwise restrict or prohibit the General Assembly from repealing any provision hereof.
SECTION 21.1.(c) G.S. 105‑187.3(a) reads as rewritten:
"(a) Amount. – The rate of the use tax imposed by
this Article is three percent (3%) of the retail value of a motor vehicle for
which a certificate of title is issued. The tax is payable as provided in G.S. 105‑187.4.
The maximum tax is one thousand dollars ($1,000) one thousand five
hundred dollars ($1,500) for each certificate of title issued for a Class A
or Class B motor vehicle that is a commercial motor vehicle, as defined in G.S. 20‑4.01.
The maximum tax is one thousand five hundred dollars ($1,500) for each
certificate of title issued for a recreational vehicle that is not subject to
the one thousand dollar ($1,000) one thousand five hundred dollars
($1,500) maximum tax."
SECTION 21.1.(d) G.S. 105‑187.3(b) reads as rewritten:
"(b) Retail Value. – The retail value of a motor
vehicle for which a certificate of title is issued because of a sale of the
motor vehicle by a retailer is the sales price of the motor vehicle, including
all accessories attached to the vehicle when it is delivered to the purchaser,
less the amount of any allowance given by the retailer for a motor vehicle
taken in trade as a full or partial payment for the purchased motor vehicle.purchaser.
The retail value of a motor vehicle for which a certificate of title is issued
because of a sale of the motor vehicle by a seller who is not a retailer is the
market value of the vehicle, less the amount of any allowance given by the
seller for a motor vehicle taken in trade as a full or partial payment for the
purchased motor vehicle.vehicle. A transaction in which two parties
exchange motor vehicles is considered a sale regardless of whether either party
gives additional consideration as part of the transaction. The retail value of
a motor vehicle for which a certificate of title is issued because of a reason
other than the sale of the motor vehicle is the market value of the vehicle.
The market value of a vehicle is presumed to be the value of the vehicle set in
a schedule of values adopted by the Commissioner."
SECTION 21.1.(e) G.S. 105‑187.6(c) is repealed.
SECTION 21.1.(f) G.S. 105‑187.9(a) reads as rewritten:
"(a) Distribution. – Taxes Unless
subsection (a1) of this section requires a different disposition, all taxes collected
under this Article at the rate of eight percent (8%) shall be credited
to the General Fund. Taxes collected under this Article at the rate of three
percent (3%) shall be credited to the North Carolina Highway Trust Fund.the
North Carolina Highway Trust Fund and the North Carolina Mobility Fund. Of the
tax collected under this Article at the rate of three percent (3%), eighty‑six
percent (86%) shall be credited to the North Carolina Highway Trust Fund and
fourteen percent (14%) shall be credited to the North Carolina Mobility Fund.
Of the tax collected under this Article at the rate of eight percent (8%), the
entire collection shall be credited to the North Carolina Mobility Fund."
SECTION 21.1.(f1) G.S. 105‑187.9 is amended by adding a new subsection to read:
"(a1) For the 2011‑2012 fiscal year, fifty percent (50%) of the taxes collected under this Article at the rate of eight percent (8%) shall be credited to the General Fund. The remaining taxes collected under this Article shall be credited in accordance with subsection (a) of this section."
SECTION 21.1.(g) 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 $4.00
Class B $4.00
Class C $4.00
The fee for a motorcycle endorsement is one dollar and seventy‑five
cents ($1.74) two dollars ($2.00) for each year of the period for
which the endorsement is issued. The appropriate fee shall be paid before a
person receives a regular drivers license or an endorsement. Twenty‑five
percent (25%) of all motorcycle endorsement fees collected pursuant to this subsection
shall be credited by the Division to the North Carolina Mobility Fund."
SECTION 21.1.(h) G.S. 20‑26(c) reads as rewritten:
"(c) The Division shall furnish copies of license records required to be kept by subsection (a) of this section in accordance with G.S. 20‑43.1 to other persons for uses other than official upon prepayment of the following fees:
(1) Limited
extract copy of license record, for period up to three years.................................................................................... $8.00$10.00
(2) Complete
extract copy of license record............................ 8.0010.00
(3) Certified
true copy of complete license record................. 11.0013.00
Twenty‑five percent (25%) of all fees collected pursuant to this subsection shall be credited by the Division to the North Carolina Mobility Fund. All remaining fees received by the Division under this subsection shall be credited to the Highway Fund."
SECTION 21.1.(i) G.S. 20‑50(b) reads as rewritten:
"(b) The Division may issue a temporary license plate for a vehicle. A temporary license plate is valid for the period set by the Division. The period may not be less than 10 days nor more than 60 days.
A person may obtain a temporary license plate for a vehicle by filing an application with the Division and paying the required fee. An application must be filed on a form provided by the Division.
The fee for a temporary license plate that is valid for 10
days is five dollars ($5.00).seven dollars ($7.00). The fee for a
temporary license plate that is valid for more than 10 days is the amount that
would be required with an application for a license plate for the vehicle. If a
person obtains for a vehicle a temporary license plate that is valid for more
than 10 days and files an application for a license plate for that vehicle
before the temporary license plate expires, the person is not required to pay
the fee that would otherwise be required for the license plate.
A temporary license plate is subject to the following limitations and conditions:
(1) It may be issued only upon proper proof that the applicant has met the applicable financial responsibility requirements.
(2) It expires on midnight of the day set for expiration.
(3) It may be used only on the vehicle for which issued and may not be transferred, loaned, or assigned to another.
(4) If it is lost or stolen, the person who applied for it must notify the Division.
(5) It may not be issued by a dealer.
(6) The provisions of G.S. 20‑63, 20‑71, 20‑110 and 20‑111 that apply to license plates apply to temporary license plates insofar as possible.
Twenty‑five percent (25%) of all fees collected pursuant to this subsection shall be credited by the Division to the North Carolina Mobility Fund."
SECTION 21.1.(j) G.S. 20‑85 (a) and (b) read as rewritten:
"(a) The following fees are imposed concerning a certificate of title, a registration card, or a registration plate for a motor vehicle. These fees are payable to the Division and are in addition to the tax imposed by Article 5A of Chapter 105 of the General Statutes.
(1)....... Each application for certificate of title............................................. $40.00
(2)....... Each application for
duplicate or corrected certificate of title............. 15.0020.00
(3)....... Each application of
repossessor for certificate of title........................ 15.0020.00
(4)....... Each transfer of
registration.............................................................. 15.0020.00
(5)....... Each set of replacement
registration plates........................................ 15.0020.00
(6)....... Each application for
duplicate registration card................................. 15.0020.00
(7)....... Each application for
recording supplementary lien............................. 15.0020.00
(8)....... Each application for
removing a lien from a certificate of title............. 15.0020.00
(9)....... Each application for
certificate of title for a motor vehicle transferred to a manufacturer, as
defined in G.S. 20‑286, or a motor vehicle retailer for the purpose
of resale.......................................................................................... 15.0020.00
(10)..... Each application for a
salvage certificate of title made by an insurer... 15.0020.00
(11)..... Each set of replacement
Stock Car Racing Theme plates issued under G.S. 20‑79.4....................................................................................................... 25.0030.00
(b) Twenty‑five percent (25%) of all fees collected pursuant to this subsection shall be credited by the Division to the North Carolina Mobility Fund. The remaining fees shall be distributed as set forth in this paragraph. Except as otherwise provided in subsection (a1) of this section, the fees collected under subdivisions (a)(1) through (a)(9) of this section shall be credited to the North Carolina Highway Trust Fund. The fees collected under subdivision (a)(10) of this section shall be credited to the Highway Fund. Fifteen dollars ($15.00) of each title fee credited to the Trust Fund under subdivision (a)(1) shall be added to the amount allocated for secondary roads under G.S. 136‑176 and used in accordance with G.S. 136‑44.5."
SECTION 21.1.(k) G.S. 20‑85.1(b) and (c) read as rewritten:
"(b) The Commissioner and the employees of the
Division designated by the Commissioner may prepare and deliver upon request a
certificate of title, charging a fee of seventy‑five dollars ($75.00)one
hundred dollars ($100.00) for one‑day title service, in lieu of the
title fee required by G.S. 20‑85(a). The fee for one‑day title
service must be paid by cash or by certified check.
(c) Twenty‑five percent (25%) of all fees collected pursuant to this subsection shall be credited by the Division to the North Carolina Mobility Fund. The remaining fee collected under subsection (a) shall be credited to the Highway Fund. The remaining fee collected under subsection (b) shall be credited to the Highway Trust Fund."
SECTION 21.1.(l) G.S. 20‑87 reads as rewritten:
"§ 20‑87. Passenger vehicle registration fees.
These shall be paid to the Division annually, as of the first day of January, for the registration and licensing of passenger vehicles, fees according to the following classifications and schedules:
(1) For‑Hire Passenger Vehicles. – The fee for a passenger vehicle that is operated for compensation and has a capacity of 15 passengers or less is seventy‑eight dollars ($78.00). The fee for a passenger vehicle that is operated for compensation and has a capacity of more than 15 passengers is one dollar and forty cents ($1.40) per hundred pounds of empty weight of the vehicle.
(2) U‑Drive‑It Vehicles. – U‑drive‑it vehicles shall pay the following tax:
Motorcycles: 1‑passenger
capacity.................................................... $18.00$23.00
2‑passenger
capacity...................................................... 22.00$28.00
3‑passenger
capacity...................................................... 26.00$33.00
Automobiles: 15 or fewer
passengers................................................ $51.00$60.00
Buses: 16
or more passengers.................................... $2.00 $2.25 per
hundred
pounds of
empty weight
Trucks under
7,000 pounds
that do not
haul products
for hire: 4,000
pounds............................................................. $41.50$52.00
5,000
pounds............................................................. $51.00$64.00
6,000
pounds............................................................. $61.00.$76.00.
(3) Repealed by Session Laws 1981, c. 976, s. 3.
(4) Limousine Vehicles. – For‑hire passenger vehicles on call or demand which do not solicit passengers indiscriminately for hire between points along streets or highways, shall be taxed at the same rate as for‑hire passenger vehicles under G.S. 20‑87(1) but shall be issued appropriate registration plates to distinguish such vehicles from taxicabs.
(5) Private Passenger Vehicles. – There shall be paid to the Division annually, as of the first day of January, for the registration and licensing of private passenger vehicles, fees according to the following classifications and schedules:
Private passenger vehicles of not more than fifteen
passengers.......................................................................... $28.00$35.00
Private passenger vehicles over fifteen
passengers...................................................................................... 31.00$39.00
Provided, that a fee of only one dollar ($1.00) shall be charged for any vehicle given by the federal government to any veteran on account of any disability suffered during war so long as such vehicle is owned by the original donee or other veteran entitled to receive such gift under Title 38, section 252, United States Code Annotated.
(6) Private Motorcycles. – The base fee on private
passenger motorcycles shall be fifteen dollars ($15.00); eighteen
dollars ($18.00) except that when a motorcycle is equipped with an
additional form of device designed to transport persons or property, the base
fee shall be twenty‑two dollars ($22.00).twenty‑eight
dollars ($28.00). An additional fee of three dollars ($3.00) is imposed on
each private motorcycle registered under this subdivision in addition to the
base fee. The revenue from the additional fee, in addition to any other funds
appropriated for this purpose, shall be used to fund the Motorcycle Safety
Instruction Program created in G.S. 115D‑72.
(7) Dealer License Plates. – The fee for a dealer license plate is the regular fee for each of the first five plates issued to the same dealer and is one‑half the regular fee for each additional dealer license plate issued to the same dealer. The "regular fee" is the fee set in subdivision (5) of this section for a private passenger motor vehicle of not more than 15 passengers.
(8) Driveaway Companies. – Any person engaged in the business of driving new motor vehicles from the place of manufacture to the place of sale in this State for compensation shall pay a fee of one‑half of the amount that would otherwise be payable under this section for each set of plates.
(9) House Trailers. – In lieu of other registration and
license fees levied on house trailers under this section or G.S. 20‑88,
the registration and license fee on house trailers shall be eleven dollars
($11.00)twenty‑five dollars ($25.00) for the license year or
any portion thereof.
(10) Special Mobile Equipment. – The fee for special mobile equipment for the license year or any part of the license year is two times the fee in subdivision (5) for a private passenger motor vehicle of not more than 15 passengers.
(11) Any vehicle fee determined under this section according to the weight of the vehicle shall be increased by the sum of three dollars ($3.00) to arrive at the total fee.
(12) Low‑Speed Vehicles. – The fee for a low‑speed vehicle is the same as the fee for private passengers vehicles of not more than 15 passengers.
Twenty‑five percent (25%) of all fees collected pursuant to this subsection shall be credited by the Division to the North Carolina Mobility Fund."
SECTION 21.1.(m) G.S. 20‑88 reads as rewritten:
"§ 20‑88 Property‑hauling vehicles.
(a) Determination of Weight. – For the purpose of licensing, the weight of self‑propelled property‑carrying vehicles shall be the empty weight and heaviest load to be transported, as declared by the owner or operator; provided, that any determination of weight shall be made only in units of 1,000 pounds or major fraction thereof, weights of over 500 pounds counted as 1,000 and weights of 500 pounds or less disregarded. The declared gross weight of self‑propelled property‑carrying vehicles operated in conjunction with trailers or semitrailers shall include the empty weight of the vehicles to be operated in the combination and the heaviest load to be transported by such combination at any time during the registration period, except that the gross weight of a trailer or semitrailer is not required to be included when the operation is to be in conjunction with a self‑propelled property‑carrying vehicle which is licensed for 6,000 pounds or less gross weight and the gross weight of such combination does not exceed 9,000 pounds, except wreckers as defined under G.S. 20‑4.01(50). Those property‑hauling vehicles registered for 4,000 pounds shall be permitted a tolerance of 500 pounds above the weight permitted under the table of weights and rates appearing in subsection (b) of this section.
(b) The following fees are imposed on the annual registration of self‑propelled property‑hauling vehicles; the fees are based on the type of vehicle and its weight:
SCHEDULE OF WEIGHTS AND RATES
Rates Per Hundred Pound Gross Weight
Farmer Rate
Not over 4,000 pounds $0.29$0.37
4,001 to 9,000 pounds inclusive .40.50
9,001 to 13,000 pounds inclusive .50.63
13,001 to 17,000 pounds inclusive .68.85
Over 17,000 pounds .77.97
Rates Per Hundred Pound Gross Weight
General Rate
Not over 4,000 pounds $0.59$0.74
4,001 to 9,000 pounds inclusive .811.02
9,001 to 13,000 pounds inclusive 1.001.25
13,001 to 17,000 pounds inclusive 1.361.70
Over 17,000 pounds 1.541.93
(1) The minimum fee for a vehicle licensed under this
subsection is twenty‑four dollars ($24.00)thirty dollars
($30.00) at the farmer rate and twenty‑eight dollars ($28.00)thirty‑five
dollars ($35.00) at the general rate.
(2) The term "farmer" as used in this subsection means any person engaged in the raising and growing of farm products on a farm in North Carolina not less than 10 acres in area, and who does not engage in the business of buying products for resale.
(3) License plates issued at the farmer rate shall be placed upon trucks and truck‑tractors that are operated for the primary purpose of carrying or transporting the applicant's farm products, raised or produced on the applicant's farm, and farm supplies. The license plates shall not be used on a vehicle operated in hauling for hire.
(4) "Farm products" means any food crop, livestock, poultry, dairy products, flower bulbs, or other nursery products and other agricultural products designed to be used for food purposes, including in the term "farm products" also cotton, tobacco, logs, bark, pulpwood, tannic acid wood and other forest products grown, produced, or processed by the farmer.
(5) The Division shall issue necessary rules and regulations providing for the recall, transfer, exchange or cancellation of "farmer" plates, when vehicle bearing such plates shall be sold or transferred.
(5a) Notwithstanding any other provision of this Chapter, license plates issued pursuant to this subsection at the farmer rate may be purchased for any three‑month period at one fourth of the annual fee.
(6) There shall be paid to the Division annually the following fees for "wreckers" as defined under G.S. 20‑4.01(50): a wrecker fully equipped weighing 7,000 pounds or less, seventy‑five dollars ($75.00); wreckers weighing in excess of 7,000 pounds shall pay one hundred forty‑eight dollars ($148.00). Fees to be prorated monthly. Provided, further, that nothing herein shall prohibit a licensed dealer from using a dealer's license plate to tow a vehicle for a customer.
(c) The fee for a semitrailer or trailer is nineteen
dollars ($19.00)twenty‑five dollars ($25.00) for each year or
part of a year. The fee is payable each year. Upon the application of the owner
of a semitrailer or trailer, the Division may issue a multiyear plate and
registration card for the semitrailer or trailer for a fee of seventy‑five
dollars ($75.00). A multiyear plate and registration card for a semitrailer or
trailer are valid until the owner transfers the semitrailer or trailer to
another person or surrenders the plate and registration card to the Division. A
multiyear plate may not be transferred to another vehicle.
The Division shall issue a multiyear semitrailer or trailer plate in a different color than an annual semitrailer or trailer plate and shall include the word "multiyear" on the plate. The Division may not issue a multiyear plate for a house trailer.
(d) Rates on trucks, trailers and semitrailers wholly or partially equipped with solid tires shall be double the above schedule.
(e) Repealed by Session Laws 1981, c. 976, s. 6.
(f) Repealed by Session Laws 1995, c. 163, s. 6.
(g) Repealed by Session Laws 1969, c. 600, s. 17.
(h) Repealed by Session Laws 1979, c. 419.
(i) Any vehicle fee determined under this section according to the weight of the vehicle shall be increased by the sum of three dollars ($3.00) to arrive at the total fee.
(j) No heavy vehicle subject to the use tax imposed by Section 4481 of the Internal Revenue Code of 1954 (26 U.S.C. 4481) may be registered or licensed pursuant to G.S. 20‑88 without proof of payment of the use tax imposed by that law. The proof of payment shall be on a form prescribed by the United States Secretary of Treasury pursuant to the provisions of 23 U.S.C. 141(d).
(k) A person may not drive a vehicle on a highway if the vehicle's gross weight exceeds its declared gross weight. A vehicle driven in violation of this subsection is subject to the axle‑group weight penalties set in G.S. 20‑118(e). The penalties apply to the amount by which the vehicle's gross weight exceeds its declared weight.
(l) The Division shall issue permanent truck and truck‑tractor plates to Class A and Class B Motor Vehicles and shall include the word "permanent" on the plate. The permanent registration plates issued pursuant to this section shall be subject to annual registration fees set in this section. The Division shall issue the necessary rules providing for the recall, transfer, exchange, or cancellation of permanent plates issued pursuant to this section.
(m) Twenty‑five percent (25%) of all fees collected pursuant to this subsection shall be credited by the Division to the North Carolina Mobility Fund."
SECTION 21.1.(n) G.S. 20‑385 reads as rewritten:
"§ 20‑385. Fee schedule.
(a) The fees listed in this section apply to a motor carrier. These fees are in addition to any fees required under the Unified Carrier Registration Agreement.
(1) Repealed by Session Laws 2007‑492, s. 5, effective August 30, 2007.
(2) Application by an intrastate motor carrier for a
certificate of exemption 45.0047.00
(3) Certification by an interstate motor carrier that it is
not regulated by the United States Department
of Transportation 45.0057.00
(4) Application by an interstate motor carrier for an
emergency trip permit 18.00.23.00.
(b) Repealed by Session Laws 2007‑492, s. 5, effective August 30, 2007.
(c) Twenty‑five percent (25%) of all fees collected pursuant to this subsection shall be credited by the Division to the North Carolina Mobility Fund."
SECTION 21.1.(o) G.S. 105‑187.9 reads as rewritten:
"§ 105‑187.9. Disposition of tax proceeds.
(a) Distribution. – Taxes collected under
this Article at the rate of eight percent (8%) shall be credited to the General
Fund. Taxes collected under this Article at the rate of three percent (3%)
shall be credited to the North Carolina Highway Trust Fund.
(b) (Effective until July 1, 2009) Transfer. – In each fiscal year the State Treasurer shall transfer the amounts provided below from the taxes deposited in the Trust Fund to the General Fund. The transfer of funds authorized by this section may be made by transferring one‑fourth of the amount at the end of each quarter in the fiscal year or by transferring the full amount annually on July 1 of each fiscal year, subject to the availability of revenue.
(1) The sum of one hundred forty‑five million dollars ($145,000,000).
(2) In addition to the amount transferred under subdivision (1) of this subsection, the sum of one million seven hundred thousand dollars ($1,700,000) shall be transferred in the 2001‑2002 fiscal year. The amount distributed under this subdivision shall increase in the 2002‑2003 fiscal year to the sum of two million four hundred thousand dollars ($2,400,000). In each fiscal year thereafter, the sum transferred under this subdivision shall be the amount distributed in the previous fiscal year plus or minus a percentage of this sum equal to the percentage by which tax collections under this Article increased or decreased for the most recent 12‑month period for which data are available.
(b) (Effective July 1, 2009 until July 1, 2010) Transfer. – In each fiscal year the State Treasurer shall transfer the amounts provided below from the taxes deposited in the Trust Fund to the General Fund. The transfer of funds authorized by this section may be made by transferring one‑fourth of the amount at the end of each quarter in the fiscal year or by transferring the full amount annually on July 1 of each fiscal year, subject to the availability of revenue.
(1) The sum of one hundred six million dollars ($106,000,000).
(2) In addition to the amount transferred under subdivision (1) of this subsection, the sum of one million seven hundred thousand dollars ($1,700,000) shall be transferred in the 2001‑2002 fiscal year. The amount distributed under this subdivision shall increase in the 2002‑2003 fiscal year to the sum of two million four hundred thousand dollars ($2,400,000). In each fiscal year thereafter, the sum transferred under this subdivision shall be the amount distributed in the previous fiscal year plus or minus a percentage of this sum equal to the percentage by which tax collections under this Article increased or decreased for the most recent 12‑month period for which data are available.
(b) (Effective July 1, 2010)
Transfer. – In each fiscal year the State Treasurer shall transfer the amounts
provided below from the taxes deposited in the Trust Fund to the General Fund.
The transfer of funds authorized by this section may be made by transferring
one‑fourth of the amount at the end of each quarter in the fiscal year or
by transferring the full amount annually on July 1 of each fiscal year, subject
to the availability of revenue.
(1) The sum of seventy‑one million
dollars ($71,000,000).
(2) In addition to the amount transferred
under subdivision (1) of this subsection, the sum of one million seven hundred
thousand dollars ($1,700,000) shall be transferred in the 2001‑2002
fiscal year. The amount distributed under this subdivision shall increase in
the 2002‑2003 fiscal year to the sum of two million four hundred thousand
dollars ($2,400,000). In each fiscal year thereafter, the sum transferred under
this subdivision shall be the amount distributed in the previous fiscal year
plus or minus a percentage of this sum equal to the percentage by which tax
collections under this Article increased or decreased for the most recent 12‑month
period for which data are available.
(a) Highway Trust Fund. – All taxes collected under this Article must be credited to the Highway Trust Fund unless subsection (b) of this section requires a different disposition.
(b) General Fund Transfer. – For the fiscal years listed below, the following amounts shall be transferred to the General Fund, with the balance to remain in the Highway Trust Fund:
(1) For the 2010‑2011 fiscal year, fifty million eight hundred ninety‑four thousand eight hundred sixty‑four dollars ($50,894,864)."
SECTION 21.1.(p) G.S. 136‑41.1(a) reads as rewritten:
"(a) There is annually appropriated out of the State Highway Fund a sum equal to the net amount after refunds that was produced during the fiscal year by a one and three‑fourths cents (1 3/4¢) tax on each gallon of motor fuel taxed under Article 36C of Chapter 105 of the General Statutes and on the equivalent amount of alternative fuel taxed under Article 36D of that Chapter. The amount appropriated shall be allocated in cash on or before October 1 of each year to the cities and towns of the State in accordance with this section. In addition, as provided in G.S. 136‑176(b)(3), revenue is allocated and appropriated from the Highway Trust Fund to the cities and towns of this State to be used for the same purposes and distributed in the same manner as the revenue appropriated to them under this section from the Highway Fund. Like the appropriation from the Highway Fund, the appropriation from the Highway Trust Fund shall be based on revenue collected during the fiscal year preceding the date the distribution is made.
There is annually appropriated from the North Carolina Mobility Fund within the Highway Trust Fund, as provided in G.S. 136‑186.1, an amount equal to six and one‑half percent (6½%) of the annual collections for North Carolina Mobility Fund to the eligible municipalities of the State in the percentage proportion that the mileage of public streets in each eligible municipality which does not form a part of the State highway system bears to the total mileage of the public streets in all eligible municipalities which do not constitute a part of the State highway system.
Seventy‑five percent (75%) of the funds appropriated for cities and towns shall be distributed among the several eligible municipalities of the State in the percentage proportion that the population of each eligible municipality bears to the total population of all eligible municipalities according to the most recent annual estimates of population as certified to the Secretary of Revenue by the State Budget Officer. This annual estimation of population shall include increases in the population within the municipalities caused by annexations accomplished through July 1 of the calendar year in which these funds are distributed. Twenty‑five percent (25%) of said fund shall be distributed among the several eligible municipalities of the State in the percentage proportion that the mileage of public streets in each eligible municipality which does not form a part of the State highway system bears to the total mileage of the public streets in all eligible municipalities which do not constitute a part of the State highway system.
It shall be the duty of the mayor of each municipality to report to the Department of Transportation such information as it may request for its guidance in determining the eligibility of each municipality to receive funds under this section and in determining the amount of allocation to which each is entitled. Upon failure of any municipality to make such report within the time prescribed by the Department of Transportation, the Department of Transportation may disregard such defaulting unit in making said allotment.
The funds to be allocated under this section shall be paid in cash to the various eligible municipalities on or before October 1 of each year. Provided that eligible municipalities are authorized within the discretion of their governing bodies to enter into contracts for the purpose of maintenance, repair, construction, reconstruction, widening, or improving streets of such municipalities at any time after January 1 of any calendar year in total amounts not to exceed ninety percent (90%) of the amount received by such municipality during the preceding fiscal year, in anticipation of the receipt of funds under this section during the next fiscal year, to be paid for out of such funds when received.
The Department of Transportation may withhold each year an amount not to exceed one percent (1%) of the total amount appropriated for distribution under this section for the purpose of correcting errors in allocations: Provided, that the amount so withheld and not used for correcting errors will be carried over and added to the amount to be allocated for the following year.
The word "street" as used in this section is hereby defined as any public road maintained by a municipality and open to use by the general public, and having an average width of not less than 16 feet. In order to obtain the necessary information to distribute the funds herein allocated, the Department of Transportation may require that each municipality eligible to receive funds under this section submit to it a statement, certified by a registered engineer or surveyor of the total number of miles of streets in such municipality. The Department of Transportation may in its discretion require the certification of mileage on a biennial basis."
SECTION 21.1.(q) G.S. 105‑164.44D reads as rewritten:
"§ 105‑164.44D. Reimbursement for sales tax exemption for purchases by the Department of Transportation.
The amount of sales and use tax revenue that is not realized
by the General Fund as the result of the sales and use tax exemption in G.S. 105‑164.13
for purchases by the Department of Transportation shall be transferred from the
Highway Fund to the General Fund in accordance with this section. This
direct transfer is made in lieu of eliminating the Department of Transportation's
sales and use tax exemption to alleviate the administrative and accounting
burden that would be placed on the Department of Transportation by eliminating
the exemption.the North Carolina Mobility Fund created pursuant to G.S. 136‑186.1.
For the 1991‑92 fiscal year, the State Treasurer
shall transfer the sum of eight million seven hundred thousand dollars
($8,700,000) from the Highway Fund to the General Fund. The transfer shall be
made on a quarterly basis by transferring one‑fourth of the annual amount
each quarter.
For each fiscal year following the 1991‑92 fiscal
year, the State Treasurer shall transfer the sum transferred the previous
fiscal year plus or minus the percentage of that amount by which the total
collection of State sales and use taxes increased or decreased during the
previous fiscal year. In each fiscal year, the transfer shall be made on a
quarterly basis by transferring one‑fourth of the annual amount each
quarter."
SECTION 21.1.(r) G.S. 136‑176 is amended by adding a new subsection to read:
"(b3) Any amounts appropriated for a particular fiscal year under subsection (b2) of this section to a project for which the North Carolina Department of Transportation or North Carolina Turnpike Authority has not issued bonds requiring debt service or related financing by the end of that fiscal year shall be transferred to the North Carolina Mobility Fund established pursuant to G.S. 136‑181.1."
SECTION 21.1.(s) Sections 21.1(c), 21.1(f), and 21.1(f1) become effective July 1, 2011. Sections 21.1(d), 21.1(e), 21.1(p), and 21.1(q) become effective July 1, 2012. The remaining provisions become effective July 1, 2010.
PART xxII. SALARIES AND BENEFITS
TEACHERS AND STATE EMPLOYEES' PAYBACK
SECTION 22.1.(a) Notwithstanding any law to the contrary, all persons employed in the Executive, Judicial, and Legislative branches of State government, and all employees of the public schools, community colleges, and universities whose salaries are paid in whole or in part from moneys appropriated by the Appropriations Act of 2009 shall receive a onetime bonus payment equivalent to one‑half percent (0.5%) of their annualized base salary paid between July 1, 2009, and June 30, 2010.
SECTION 22.1.(b) The onetime bonus payment shall not be included in the retirement average final compensation and shall not be subject to employee or employer contributions to the Retirement Systems Division or Optional Retirement Program (ORP).
TEACHER SALARY SCHEDULES
SECTION 22.2.(a) Effective for the 2010‑2011 school year, the Director of the Budget shall transfer from the Reserve for Compensation Increases funds necessary to implement the teacher salary schedules set out in subsection (b) of this section and for longevity in accordance with subsection (c) of this section, including funds for the employer's retirement and social security contributions for all teachers whose salaries are supported from the State's General Fund. These funds shall be allocated to individuals according to rules adopted by the State Board of Education.
SECTION 22.2.(b) The following monthly salary schedules shall apply for the 2010‑2011 fiscal year to certified personnel of the public schools who are classified as teachers. The schedule contains 33 steps with each step corresponding to one year of teaching experience.
2010‑2011 Monthly Salary Schedule
"A" Teachers
Years of Experience "A" Teachers NBPTS Certification
0 $3,043 N/A
1 $3,043 N/A
2 $3,085 N/A
3 $3,129 $3,504
4 $3,264 $3,656
5 $3,404 $3,812
6 $3,538 $3,963
7 $3,667 $4,107
8 $3,771 $4,224
9 $3,819 $4,277
10 $3,868 $4,332
11 $3,918 $4,388
12 $3,967 $4,443
13 $4,018 $4,500
14 $4,069 $4,557
15 $4,122 $4,617
16 $4,176 $4,677
17 $4,231 $4,739
18 $4,286 $4,800
19 $4,345 $4,866
20 $4,403 $4,931
21 $4,461 $4,996
22 $4,523 $5,066
23 $4,584 $5,134
24 $4,650 $5,208
25 $4,714 $5,280
26 $4,779 $5,352
27 $4,845 $5,426
28 $4,913 $5,503
29 $4,984 $5,582
30 $5,055 $5,662
31 $5,153 $5,771
32+ $5,255 $5,886
2010‑2011 Monthly Salary Schedule
"M" Teachers
Years of Experience "M" Teachers NBPTS Certification
0 $3,347 N/A
1 $3,347 N/A
2 $3,394 N/A
3 $3,442 $3,855
4 $3,590 $4,021
5 $3,744 $4,193
6 $3,892 $4,359
7 $4,034 $4,518
8 $4,148 $4,646
9 $4,201 $4,705
10 $4,255 $4,766
11 $4,310 $4,827
12 $4,364 $4,888
13 $4,420 $4,950
14 $4,476 $5,013
15 $4,534 $5,078
16 $4,594 $5,145
17 $4,654 $5,212
18 $4,715 $5,281
19 $4,780 $5,354
20 $4,843 $5,424
21 $4,907 $5,496
22 $4,975 $5,572
23 $5,042 $5,647
24 $5,115 $5,729
25 $5,185 $5,807
26 $5,257 $5,888
27 $5,330 $5,970
28 $5,404 $6,052
29 $5,482 $6,140
30 $5,561 $6,228
31 $5,668 $6,348
32+ $5,781 $6,475
SECTION 22.2.(c) Annual longevity payments for teachers shall be at the rate of one and one‑half percent (1.5%) of base salary for 10 to 14 years of State service, two and twenty‑five hundredths percent (2.25%) of base salary for 15 to 19 years of State service, three and twenty‑five hundredths percent (3.25%) of base salary for 20 to 24 years of State service, and four and one‑half percent (4.5%) of base salary for 25 or more years of State service. The longevity payment shall be paid in a lump sum once a year.
SECTION 22.2.(d) Certified public schoolteachers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers. Certified public schoolteachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers.
SECTION 22.2.(e) The first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "M" teachers. Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience. Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.
Certified psychologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified psychologists.
Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.
SECTION 22.2.(f) Speech pathologists who are certified as speech pathologists at the master's degree level and audiologists who are certified as audiologists at the master's degree level and who are employed in the public schools as speech and language specialists and audiologists shall be paid on the school psychologist salary schedule. Speech pathologists and audiologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for speech pathologists and audiologists. Speech pathologists and audiologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for speech pathologists and audiologists.
SECTION 22.2.(g) Certified school nurses who are employed in the public schools as nurses shall be paid on the "M" salary schedule.
SECTION 22.2.(h) As used in this section, the term "teacher" shall also include instructional support personnel.
SCHOOL BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 22.3.(a) Effective for the 2010‑2011 school year, the Director of the Budget shall transfer from the Reserve for Compensation Increases funds necessary to implement the salary schedules for school‑based administrators as provided in this section. These funds shall be used for State‑paid employees only.
SECTION 22.3.(b) The base salary schedule for school‑based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2010‑2011 fiscal year, commencing July 1, 2010, is as follows:
2010‑2011 Principal and Assistant Principal Salary Schedules Classification
Years of Exp Assistant Prin I Prin II Prin III Prin IV
Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,781
5 $3,931
6 $4,074
7 $4,189
8 $4,243 $4,243
9 $4,298 $4,298
10 $4,353 $4,353 $4,408
11 $4,408 $4,408 $4,464
12 $4,464 $4,464 $4,521 $4,579
13 $4,521 $4,521 $4,579 $4,640 $4,701
14 $4,579 $4,579 $4,640 $4,701 $4,762
15 $4,640 $4,640 $4,701 $4,762 $4,828
16 $4,701 $4,701 $4,762 $4,828 $4,891
17 $4,762 $4,762 $4,828 $4,891 $4,956
18 $4,828 $4,828 $4,891 $4,956 $5,025
19 $4,891 $4,891 $4,956 $5,025 $5,092
20 $4,956 $4,956 $5,025 $5,092 $5,166
21 $5,025 $5,025 $5,092 $5,166 $5,237
22 $5,092 $5,092 $5,166 $5,237 $5,310
23 $5,166 $5,166 $5,237 $5,310 $5,383
24 $5,237 $5,237 $5,310 $5,383 $5,458
25 $5,310 $5,310 $5,383 $5,458 $5,537
26 $5,383 $5,383 $5,458 $5,537 $5,617
27 $5,458 $5,458 $5,537 $5,617 $5,725
28 $5,537 $5,537 $5,617 $5,725 $5,839
29 $5,617 $5,617 $5,725 $5,839 $5,956
30 $5,725 $5,725 $5,839 $5,956 $6,075
31 $5,839 $5,839 $5,956 $6,075 $6,197
32 $5,956 $6,075 $6,197 $6,321
33 $6,197 $6,321 $6,447
34 $6,321 $6,447 $6,576
35 $6,576 $6,708
36 $6,708 $6,842
37 $6,979
2010‑2011 Principal and Assistant Principal Salary Schedules Classification
Years of Exp Prin V Prin VI Prin VII Prin VIII
(44‑54) (55‑65) (66‑100) (101+)
0‑14 $4,828
15 $4,891
16 $4,956 $5,025
17 $5,025 $5,092 $5,237
18 $5,092 $5,166 $5,310 $5,383
19 $5,166 $5,237 $5,383 $5,458
20 $5,237 $5,310 $5,458 $5,537
21 $5,310 $5,383 $5,537 $5,617
22 $5,383 $5,458 $5,617 $5,725
23 $5,458 $5,537 $5,725 $5,839
24 $5,537 $5,617 $5,839 $5,956
25 $5,617 $5,725 $5,956 $6,075
26 $5,725 $5,839 $6,075 $6,197
27 $5,839 $5,956 $6,197 $6,321
28 $5,956 $6,075 $6,321 $6,447
29 $6,075 $6,197 $6,447 $6,576
30 $6,197 $6,321 $6,576 $6,708
31 $6,321 $6,447 $6,708 $6,842
32 $6,447 $6,576 $6,842 $6,979
33 $6,576 $6,708 $6,979 $7,119
34 $6,708 $6,842 $7,119 $7,261
35 $6,842 $6,979 $7,261 $7,406
36 $6,979 $7,119 $7,406 $7,554
37 $7,119 $7,261 $7,554 $7,705
38 $7,261 $7,406 $7,705 $7,859
39 $7,554 $7,859 $8,016
40 $7,705 $8,016 $8,176
41 $8,176 $8,340
SECTION 22.3.(c) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, shall be determined in accordance with the following schedule:
Number of Teachers
Classification Supervised
Assistant Principal
Principal I Fewer than 11 Teachers
Principal II 11‑21 Teachers
Principal III 22‑32 Teachers
Principal IV 33‑43 Teachers
Principal V 44‑54 Teachers
Principal VI 55‑65 Teachers
Principal VII 66‑100 Teachers
Principal VIII More than 100 Teachers
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non‑State funds or the principal or teacher assistants.
The beginning classification for principals in alternative schools and in cooperative innovative high school programs shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 22.3.(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 22.3.(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 22.3.(f) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
SECTION 22.3.(g) If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 22.3.(h) Participants in an approved full‑time master's in school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the master's program. For the 2006‑2007 fiscal year and subsequent fiscal years, the stipend shall not exceed the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, and books and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full‑time master's in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.
SECTION 22.3.(i) During the 2010‑2011 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.
BONUS LEAVE FOR STATE EMPLOYEES
SECTION 22.4.(a) Except as provided by subsection (b) of this section, any person (i) who is a full‑time permanent employee of the State, a community college institution, or a local board of education on July 1, 2010, and (ii) who is eligible to earn annual leave shall have a onetime additional 32 hours of bonus leave credited on that date. The additional leave shall be accounted for separately from other leave. Of these 32 hours, 24 flexible bonus hours shall remain available until used, notwithstanding any other limitation on the total number of days of annual leave that may be carried forward. The remaining eight hours must be used on December 23, 2010, or be forfeited, notwithstanding requirements for employees who are required to work on December 23 in order to provide scheduled services. Employees who are required to work on December 23 or who work in institutions that would be closed on that day must be allowed to use these eight hours of leave within 30 days before or after December 23, 2010, or forfeit it if unused by January 23, 2011. Part‑time permanent employees who earn annual leave shall receive a pro rata amount.
SECTION 22.4.(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) Any public school employee or State employee paid on the Teacher Salary Schedule or the School‑Based Administrator Salary Schedule.
SALARY‑RELATED CONTRIBUTIONS/EMPLOYER
SECTION 22.5.(b) Section 6(c) of S.L. 2009‑16 reads as rewritten:
"SECTION 6.(c) Effective July 1, 2010, the State's
employer contribution rates budgeted for retirement and related benefits as
percentage of covered salaries for the 2010‑2011 fiscal year are: (i) eight
and ninety‑four hundredths percent (8.94%) ten and seventy
hundredths percent (10.70%) – Teachers and State Employees; (ii) thirteen
and ninety‑four hundredths percent (13.94%) fifteen and seventy
hundredths percent (15.70%) – State Law Enforcement Officers; (iii) twelve
and twenty‑six hundredths percent (12.26%) – University Employees'
Optional Retirement System; (iv) twelve and twenty‑six hundredths percent
(12.26%) – Community College Optional Retirement Program; (v) eighteen and
eleven hundredths percent (18.11%) twenty and one hundredths percent
(20.01%) – Consolidated Judicial Retirement System; and (vi) four and
ninety hundredths percent (4.90%) – Legislative Retirement System. Each of the
foregoing contribution rates includes four and ninety hundredths percent
(4.90%) for hospital and medical benefits. The rate for Teachers and State
Employees, State Law Enforcement Officers, Community College Optional
Retirement Program, and for the University Employees' Optional Retirement
Program includes fifty‑two hundredths percent (0.52%) for the Disability
Income Plan. The rates for Teachers and State Employees and State Law
Enforcement Officers include sixteen‑hundredths percent (0.16%) for the
Death Benefits Plan. The rate for State Law Enforcement Officers includes five
percent (5%) for Supplemental Retirement Income."
BONUS FOR CERTIFIED PERSONNEL AT THE TOP OF THEIR SALARY SCHEDULES
SECTION 22.6. Effective July 1, 2010, any permanent personnel employed on July 1, 2010, and paid at the top of the teacher salary schedule shall receive a onetime bonus equivalent to one and seventy‑eight hundredths percent (1.78%). Any permanent personnel employed on July 1, 2010, and paid at the top of the principal and assistant principal salary schedule shall receive a onetime bonus equivalent to two percent (2%).
STATE AGENCY TEACHERS' COMPENSATION
SECTION 22.7. 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, the Department of Juvenile Justice and Delinquency Prevention, or the North Carolina School of Science and Mathematics who are paid on the Teacher Salary Schedule or the School‑Based Administrator Salary Schedule.
PART XXIII. CAPITAL APPROPRIATIONS
CAPITAL APPROPRIATIONS/GENERAL FUND
SECTION 23.1. There is appropriated from the General Fund for the 2010‑2011 fiscal year the following amount for capital improvements:
Capital Improvements – General Fund 2010‑2011
Department of Environment and Natural Resources
Water Resources Development Projects 11,172,072
TOTAL CAPITAL IMPROVEMENTS – GENERAL FUND $11,172,072
WATER RESOURCES DEVELOPMENT PROJECT FUNDS
SECTION 23.2.(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 2010‑2011
(1) Wilmington Harbor Deepening 2,000,000
(2) Wilmington Harbor Maintenance 100,000
(3) Morehead City Harbor Maintenance 200,000
(4) B. Everett Jordan Lake Water Supply Storage 1,250,000
(5) Dredging Contingency Fund 1,000,000
(6) AIWW Dredging 5,000
(7) Bogue Banks Shore Protection Study 50,000
(8) John H. Kerr Dam and Reservoir Sec. 216 ‑
(9) Neuse River Basin PED 200,000
(10) Princeville Flood Damage Reduction 50,000
(11) Currituck Sound Environmental Restoration Study 350,000
(12) Belhaven Harbor – CAP – Sec 1135 0
(13) Surf City / North Topsail Beach Protection Study‑PED 50,000
(14) West Onslow Beach(Topsail Beach)‑PED 800,000
(15) Silver Lake Harbor Disposal Area Maintenance 25,000
(16) Manteo Old House Channel – CAP – Sec 204 ‑
(17) Concord Streams Restoration – CAP – Sec 206 ‑
(18) North Carolina International Terminal ‑
(19) Planning Assistance to Communities 2,000,000
(20) State – Local projects 350,000
(21) Aquatic Plant Control, Statewide and Lake Gaston 266,000
(22) Aquatic Weed Storage Facility 210,000
(23) Lake Junaluska Dredging 150,000
(24) Cape Fear River Basin Model Update 37,500
(25) Catawba Water Management Study 425,000
(26) Little Fork Creek Restoration (Rendezvous SF) 303,572
(27) Emerald Isle Boat Launch Facility 450,000
(28) Southern Shores Canal Dredging 900,000
TOTALS $11,172,072
SECTION 23.2.(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 2010‑2011 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) U.S. Army Corps of Engineers project feasibility studies.
(2) U.S. Army Corps of Engineers projects whose schedules have advanced and require State‑matching funds in fiscal year 2010‑2011.
(3) State‑local water resources development projects.
(4) Funds not expended or encumbered for these purposes shall revert to the General Fund at the end of the 2010‑2011 fiscal year.
SECTION 23.2.(c) The Department shall make semiannual 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 semiannual 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.
NON‑GENERAL FUND CAPITAL IMPROVEMENT AUTHORIZATIONS
SECTION 23.3.(a) The General Assembly authorizes the following capital projects to be funded with receipts or from other non‑General Fund sources available to the appropriate department:
Name of Project Amount of Non‑General Fund
Funding Authorized
for FY 2010‑2011
Department of Agriculture and Consumer Services
Upgrade Steam Generation Capability at Food and Drug Facility 18,000
Western NC Agricultural Center – Storage Shed 23,000
Western NC Agricultural Center – Entertainment Stage 35,000
Western NC Agricultural Center – Youth Building Roof Replacement 3,000
Western NC Agricultural Center – RV Site Improvements 20,000
Western NC Agricultural Center – C&D Barn Access Road 125,000
Western NC Agricultural Center – Handicap Platform 8,000
Western NC Agricultural Center – Exhibits/Cashier Office 70,000
Western NC Agricultural Center – Retention Pond Parking 225,000
Constable Lab Standby Generator/Rollins Lab Security 363,245
Southeastern Agricultural Center – Multipurpose Pavilion 1,290,000
Southeastern Agricultural Center – Horse Stalls 700,000
Research Stations Irrigation Renovations 200,000
Piedmont Research Station – Grain Storage Renovation 400,000
Department of Correction
Southern Medium Programs Building 600,000
Caledonia Programs Building 600,000
Caswell Programs Building 600,000
Southern Minimum Programs Building 600,000
Randolph Programs Building 600,000
Department of Cultural Resources
USS NC Battleship Repairs, Dredging, Construction 1,700,000
Commission Battleship Fund
Department of Environment and Natural Resources
Forest Resources – Bladen Lakes Ranger Residence 399,000
Department of Justice
NC Justice Academy Live Fire Shoot House 282,000
Wildlife Resources Commission
Pisgah Education Center Repairs and Renovation 60,000
Outer Banks Education Center Repairs and Renovation 26,000
Mt. Holly Depot Acquisition 150,000
Statewide Boating Access Areas (BAA) Renovations 3,610,000
Table Rock Hatchery Residence Renovation 150,000
McKinney Lake Equipment Shed 70,000
Fishing Access Areas Construction 180,000
TOTAL AMOUNT OF NON‑GENERAL FUND CAPITAL
PROJECTS AUTHORIZED $13,708,245
SECTION 23.3.(b) From funds deposited with the State Treasurer in a capital improvement account to the credit of the Department of Agriculture and Consumer Services pursuant to G.S. 146‑30, the sum of thirty thousand dollars ($30,000) for the 2010‑2011 fiscal year shall be transferred to the Department of Agriculture and Consumer Services to be used, notwithstanding G.S. 146‑30, by the Department for its plant conservation program under Article 19B of Chapter 106 of the General Statutes for costs incidental to the acquisition of land, such as land appraisals, land surveys, title searches, environmental studies, and for the management of the plant conservation program preserves owned by the Department.
AMEND 2009 WILDLIFE RESOURCES COMMISSION NON‑GENERAL FUND CAPITAL IMPROVEMENT AUTHORIZATIONS
SECTION 23.4. Section 27.4(a) of S.L. 2009‑451 reads as rewritten:
"SECTION 27.4.(a) The General Assembly authorizes the following capital projects to be funded with receipts or from other non‑General Fund sources available to the appropriate department:
Name of Project Amount of Non‑General Fund
Funding Authorized for FY 2009‑2010
Department of Crime Control and Public Safety
Additions and Renovations to Armories $ 9,303,442
Camp Butner Cantonment – Phase 1 Design 1,367,000
Family Assistance Centers 2,000,000
Gastonia Armory Renovation and Expansion 1,100,000
Tactical Unmanned Aerial Systems Facility 6,746,000
Department of Cultural Resources
Aycock Birthplace Picnic Shelter 86,100
Maritime Museum – Floating Dock 130,000
Museum of History Chronology Exhibit – Phase 2B (1900‑1960) 1,200,000
Department of Environment and Natural Resources
Zoo – Elephant Exhibit New Restrooms 300,000
Wildlife Resources Commission
Armstrong Hatchery Lower Raceway Replacement 1,725,000
Centennial Campus Education Center Exhibit Completion 180,000
Chinquapin Equipment Storage Pole Shed 60,000
Chowan Bridge Fishing Pier and Edenton Boating Access 450,000
Emerald Isle New Boating Access Area 600,000
Falls Lake Office Building 550,000
Hampstead Land Acquisition 10,000,000
Land Acquisitions – State Gamelands 59,135,00020,000,000
Lewelyn Branch New Boating Access Area 150,000
Manns Harbor Bridge Marina Acquisition 5,750,000
Marion Depot Drainage Repairs 200,000
McKinney Lake Hatchery Kettles Replacement 1,700,000
Minor Boating Access Area Renovations – Various Locations 150,000
New Coldwater Fish Hatchery Construction 7,900,000
Marion Hatchery and Depot Renovation 4,000,000
Statewide Emergency Repair & Renovation 3,500,000
Ocean Isle Boating Access Area Renovations 150,000
Outer Banks Education Center Teaching Facility Repairs 245,000
Pechmann Fishing Education Center Pond Restoration 160,000
Pechmann Fishing Education Center Storage Building 220,000
Pisgah Education Center Gift Shop Renovation and Expansion 200,000
Pisgah Education Center Outdoor Exhibit Renovation 450,000
Pisgah Education Center Repairs 155,000
Pisgah Hatchery Water System Renovation 100,000
Rhodes Pond Dam Repairs 500,000
Sneads Ferry Land Acquisition 6,500,000
Sunset Harbor Land Acquisition 925,000
Swan Quarter Land Acquisition 1,700,000
Sykes Depot Pond, Office, Storage Construction 350,000
Table Rock Hatchery Office and Workshop Replacement 345,000
TOTAL AMOUNT OF NON‑GENERAL FUND CAPITAL
PROJECTS AUTHORIZED $122,782,542$83,247,542
Wildlife Resources Commission must receive approval from the Office of State Budget and Management before expending funds from the Statewide Emergency Repair & Renovation project."
AMEND DEBT SERVICE FOR GREEN SQUARE COMPLEX PARKING CONSTRUCTION
SECTION 23.6. Section 27.8 of S.L. 2009‑451 reads as rewritten:
"SECTION 27.8. Notwithstanding Item 61, Page M‑11,
of the Joint Conference Committee Report on the Continuation, Expansion and
Capital Budgets for S.L. 2008‑107, the General Fund shall service the
debt for the Green Square Complex parking deck during the 2009‑2011
fiscal biennium.deck."
PART XXIV. REVENUE LAW CHANGES
RENEW SMALL BUSINESS HEALTH INSURANCE CREDIT
SECTION 24.1.(a) G.S. 105‑129.16E reads as rewritten:
"§ 105‑129.16E. (Effective for taxable years beginning on or after January 1, 2007, and expires for taxable years beginning on or after January 1, 2010) Credit for small business employee health benefits.
(a) Credit. – A small business that provides health benefits for all of its eligible employees during the taxable year is allowed a credit to offset its costs in providing health benefits for its eligible employees. For the purposes of this subsection, a taxpayer provides health benefits if it pays at least fifty percent (50%) of the premiums for health care coverage that equals or exceeds the minimum provisions of the basic health care plan of coverage recommended by the Small Employer Carrier Committee pursuant to G.S. 58‑50‑125 or if its employees have qualifying existing coverage.
The credit is equal to a dollar amount per eligible employee whose total wages or salary received from the business does not exceed forty thousand dollars ($40,000) on an annual basis. The dollar amount is two hundred fifty dollars ($250.00), not to exceed the taxpayer's costs of providing health benefits for the employee during the taxable year.
(b) Allocation. – If the taxpayer is an individual who is a nonresident or a part‑year resident, the taxpayer must reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105‑134.5(b) or (c), as appropriate. If the taxpayer is not an individual and is required to apportion its multistate business income to this State, the taxpayer must reduce the amount of the credit by multiplying it by the apportionment fraction used to apportion its apportionable income to this State.
(c) Definitions. – The following definitions apply in this section:
(1) Eligible employee. – Defined in G.S. 58‑50‑110.
(2) Qualifying existing coverage. – Defined in G.S. 58‑50‑130(a)(4a).
(3) Small business. – A taxpayer that employs no more than 25 eligible employees throughout the taxable year.
(d) Sunset. – This section expires for taxable years
beginning on or after January 1, 2010.2012."
SECTION 24.1.(b) This act is effective when it becomes law.
SMALL BUSINESS START‑UP TAX RELIEF
SECTION 24.2.(a) G.S. 105‑130.5(b) is amended by adding a new subdivision to read:
"(b) The following deductions from federal taxable income shall be made in determining State net income:
…
(26) The amount of any exclusion of gain for qualified businesses allowed under Part 5 of this Article, to the extent included in federal taxable income, less the amount of the credits recaptured pursuant to G.S. 105‑163.021; provided, however, that a taxpayer is not required to claim this exclusion."
SECTION 24.2.(b) G.S. 105‑134.6(b) is amended by adding a new subdivision to read:
"(b) Deductions. – The following deductions from taxable income shall be made in calculating North Carolina taxable income, to the extent each item is included in taxable income:
…
(21) The amount of the exclusion of gain for qualified businesses allowed under Part 5 of this Article, less the amount of the credits recaptured pursuant to G.S. 105‑163.021; provided, however, that a taxpayer is not required to claim this exclusion."
SECTION 24.2.(c) Part 5 of Article 4 of Chapter 105 of the General Statutes is amended by adding the following new section to read:
"§ 105‑163.020. Exclusion of gain allowed.
(a) Election. – A taxpayer may elect to exclude from the taxpayer's income taxable under this Article any gain or other taxable income recognized for federal income tax purposes from the sale or exchange of qualified securities.
(b) Pass‑Through Entity. – Except as provided in subsection (c) of this section, a taxpayer that is an owner of a pass‑through entity may exclude from the taxpayer's income taxable under this Article an amount equal to the taxpayer's allocated share of the exclusion for which the pass‑through entity is eligible under subsection (a) of this section.
(c) Qualified Grantee Pass‑Through Entity. – If a taxpayer is an owner of a pass‑through entity that was a qualified grantee business at the time of the taxpayer's investment in the pass‑through entity, the taxpayer may exclude from the taxpayer's income taxable under this Article an amount equal to the gain or other taxable income recognized as a result of the taxpayer's ownership in the pass‑through entity, multiplied by a fraction, the numerator of which is the total amount invested by the pass‑through entity in qualified businesses and the denominator of which is the total amount invested by the pass‑through entity. For purposes of this subsection, the amounts invested by a pass‑through entity shall be the amounts invested immediately before the pass‑through entity's sale or exchange producing the gain or taxable income excluded under this subsection.
"§ 105‑163.021. Recapture of credit.
If a taxpayer claims an exclusion of gain from income pursuant to G.S. 105‑163.020, the income tax of the taxpayer for the tax year for which the exclusion is claimed shall be increased by the amount of all credits previously claimed by the taxpayer pursuant to G.S. 105‑163.011 with respect to qualified securities that (i) have been sold or exchanged and (ii) the gain from which has been excluded pursuant to G.S. 105‑163‑020.
"§ 105‑163.022. Qualified securities.
(a) Qualified Security. – Except as otherwise provided in this section, any equity security or subordinated debt instrument issued by a qualified business is a qualified security if it satisfies all of the following conditions:
(1) It is originally issued by the business on or after January 1, 2011.
(2) As of the date of issuance, the issuing business is a qualified business.
(3) The security or instrument is acquired by the taxpayer at its original issue in exchange for any tangible or intangible property or benefit to the business, including cash, promissory notes, services performed, contracts for services to be performed, or other equity securities of the business.
(4) It is held by the taxpayer for a continuous period of more than one year.
(5) No broker's fee or commission or other similar remuneration is paid or given directly or indirectly for soliciting the purchase.
(6) If the security or instrument was purchased by a pass‑through entity, the entity met the requirements of G.S. 105‑163.011(b1) at the time of purchase.
(b) Registration. – Securities of a qualified business acquired before the effective date of its registration are not qualified securities. Revocation of the registration of a qualified business pursuant to G.S. 105‑163.013 does not affect the exclusion of gain from qualified securities acquired while the registration was in effect if all conditions for registration are satisfied.
(c) Effect of Redemptions and Other Distributions. – An equity security or subordinated debt instrument is not a qualified security to the extent the taxpayer purchased it with the proceeds of a redemption, dividend, or distribution made by the business that issued the security or instrument. For the purpose of this subsection, when a business makes a redemption, dividend, or distribution during the four‑year period beginning two years before the issuance of securities or instruments to a taxpayer, the taxpayer is considered to have used the proceeds of the redemption, dividend, or distribution toward the purchase of the securities or instruments. A redemption, dividend, or distribution occurs when the business issuing the security or instrument does either of the following:
(1) Purchases, directly or indirectly, any of its outstanding equity securities or subordinated debt, other than qualified securities, from the taxpayer or a related person.
(2) Declares a dividend or makes a distribution with respect to any of its outstanding equity securities or subordinated debt, other than qualified securities, to the taxpayer or a related person. This subdivision does not apply, however, to a distribution in connection with one of the following:
a. The reimbursement to the taxpayer of the reasonable costs of forming, syndicating, managing, and operating the business.
b. An increase in the taxpayer's taxes, penalties, or interest to the extent the increase is caused by the allocation to the taxpayer of income of the business.
The repayment of principal on subordinated debt is a purchase of the debt except to the extent the repayment is repayment of principal due on the subordinated debt at its maturity pursuant to the terms of the subordinated debt instrument. If a transaction is treated under section 304(a) of the Code as a distribution in redemption of the equity securities of a business, that business has, for the purpose of this subsection, purchased an amount of its equity securities equal to the amount treated as such a distribution under section 304(a) of the Code.
(d) Exception for Certain Transactions. – The following transactions are not treated as a redemption or distribution for the purposes of subsection (c) of this section:
(1) Any deemed liquidation of a business pursuant to section 708(b)(1)(A) of the Code by reason of the business becoming a disregarded entity for federal tax purposes, to the extent there is not actual distribution of money or other property to the taxpayer of a related person.
(2) Any deemed distribution or redemption by reason of a technical termination of a business pursuant to section 708(b)(1)(B) of the Code to the extent there is no actual distribution of money or other property to the taxpayer or a related person.
(e) Conversion of Other Securities. – Any equity security or subordinated debt instrument issued by a business and acquired by the taxpayer solely through the conversion of another equity security or subordinated debt instrument that was issued by the business and was a qualified security in the hands of the taxpayer is considered, for the purpose of this section, a qualified security in the hands of the taxpayer and acquired by the taxpayer on the date the taxpayer acquired the converted qualified security.
(f) Transfers. – In the case of a transfer by gift, by death, or from a pass‑through entity to one of its owners, the transferee is considered, for the purpose of this section, to have acquired the qualified security in the same manner as the transferor and to have held it during any continuous period immediately preceding the transfer during which it was held or treated as held by the transferor.
In the case of a transaction described in section 351 or 721 of the Code or a reorganization described in section 368 of the Code, if qualified securities are exchanged for other securities, the other securities are considered, for the purpose of this section, qualified securities acquired on the date the exchanged qualified securities were acquired. In the case of a transaction described in section 351 or 721 of the Code, the newly acquired securities are considered qualified securities, however, only if, immediately after the transaction, the business issuing the securities owns, directly or indirectly, securities representing control, within the meaning of section 368(c) of the Code, of the business whose securities were exchanged.
"§ 105‑163.023. Limitations.
(a) Contributions and Exchanges of Property. – In the case of a transaction described in section 351 or 721 of the Code or a reorganization described in section 368 of the Code, if a taxpayer contributes property to or exchanges property with a qualified business, the following rules apply:
(1) Qualified securities exchanged for property. – Except as otherwise provided in subdivision (3) of this subsection, a taxpayer who transfers property to a business in exchange for qualified securities in the business must, for purposes of determining North Carolina taxable income, recognize gain equal to the amount by which the fair market value of the property exceeded the taxpayer's basis in the property on the date the property was exchanged for the qualified securities. This gain must be recognized for the years for which the taxpayer claims an exclusion of gain under this Part with respect to the disposition of qualified securities received in exchange for the property.
(2) Contributions to capital. – Except as otherwise provided in subdivision (3) of this subsection, if the adjusted basis of a qualified security is adjusted due to a contribution to capital after the date the qualified security was issued originally, for purposes of determining North Carolina taxable income, the taxpayer must recognize gain equal to the amount by which the fair market value of the contributed property exceeded the taxpayer's basis in the property on the date the property was contributed. This gain must be recognized for the years for which the taxpayer claims an exclusion of gain under this Part with respect to the disposition of the qualified securities.
(3) Disposition of contributed property. – If a qualified business disposes of property contributed to it, the disposition occurs before the taxpayer who contributed the property claims an exclusion of gain pursuant to this Part with respect to qualified securities affected by the contribution, and the taxpayer recognizes gain from the disposition, then for purposes of subdivisions (1) and (2) of this subsection, the taxpayer's basis in the contributed property is increased by any gain the taxpayer recognized from the disposition.
(b) Transactions That Substantially Reduce the Risk of Loss. – If a taxpayer has entered into any transaction that substantially reduces the risk of loss from holding the qualified securities, there is no exclusion of gain under this Part from the sale or exchange of the qualified securities unless the taxpayer entered into the transaction on or after January 1, 2011, and elects to recognize gain as if the qualified securities were sold at fair market value on the date the taxpayer first entered into that transaction. The following are examples of a transaction that substantially reduces the risk of loss from holding the qualified securities:
(1) The taxpayer or a related person has made a short sale of substantially identical property.
(2) The taxpayer or a related person has acquired an option to sell substantially identical property at a fixed price."
EXTEND QUALIFIED BUSINESS VENTURE CREDIT AND RAISE CAP
SECTION 24.3.(a) G.S. 105‑163.012(b) reads as rewritten:
"(b) The total amount of all tax credits allowed to
taxpayers under G.S. 105‑163.011 for investments made in a calendar
year may not exceed seven million five hundred thousand dollars
($7,500,000).eight million dollars ($8,000,000). The Secretary of
Revenue shall calculate the total amount of tax credits claimed from the
applications filed pursuant to G.S. 105‑163.011(c). If the total
amount of tax credits claimed for investments made in a calendar year exceeds
this maximum amount, the Secretary shall allow a portion of the credits claimed
by allocating the maximum amount in tax credits in proportion to the size of
the credit claimed by each taxpayer."
SECTION 24.3.(b) G.S. 105‑163.015 reads as rewritten:
"§ 105‑163.015. Sunset.
This Part is repealed effective for investments made on or
after January 1, 2011.2013."
EXTEND REFUND FOR MOTORSPORTS AVIATION
SECTION 24.4. G.S. 105‑164.14(l) reads as rewritten:
"(l) Aviation Fuel for Motorsports Events. – A
professional motorsports racing team or a motorsports sanctioning body is
allowed a refund of the sales and use tax paid by it in this State on aviation
fuel that is used to travel to or from a motorsports event in this State, to
travel to a motorsports event in another state from a location in this State,
or to travel to this State from a motorsports event in another state. For the
purposes of this subsection, a "motorsports event" includes a
motorsports race, a motorsports sponsor event, and motor sports testing. A
request for a refund must be in writing and must include any information and
documentation the Secretary requires. A request for a refund is due within six
months after the end of the State's fiscal year. Refunds applied for after the
due date are barred. This subsection is repealed for purchases made on or after
January 1, 2011.2013."
CONFORM TO FEDERAL HIRE ACT
SECTION 24.5.(a) G.S. 105‑228.90(b)(1b) reads as rewritten:
"(b) Definitions. – The following definitions apply in this Article:
…
(1b) Code. – The Internal Revenue Code as enacted as of May
1, 2009,May 1, 2010, including any provisions enacted as of that
date which become effective either before or after that date."
SECTION 24.5.(b) This act is effective when it becomes law.
HIGH UNEMPLOYMENT HIRING INCENTIVE
SECTION 24.6. G.S. 105‑129.81 reads as rewritten:
"§ 105‑129.81. Definitions.
The following definitions apply in this Article:
…
(11a) High unemployment county. – [For the tax years ending on December 31, 2011 and December 31, 2012,] a county that has an unemployment rate equal or greater than 125% of the State average unemployment rate, as determined by the Secretary of Commerce annually in the development tier ranking published pursuant to G.S. 143B‑437.08.
…."
SECTION 24.6A. G.S. 105‑129.87(a) reads as rewritten:
"(a) Credit. – A taxpayer that meets the eligibility requirements set out in G.S. 105‑129.83 and satisfies the threshold requirement for new job creation in this State under subsection (b) of this section during the taxable year is allowed a credit for creating jobs. The amount of the credit for each new job created is set out in the table below and is based on the development tier designation of the county in which the job is located. If the job is located in an urban progress zone or an agrarian growth zone, the amount of the credit is increased by one thousand dollars ($1,000) per job. In addition, if a job located in an urban progress zone or an agrarian growth zone is filled by a resident of that zone or by a long‑term unemployed worker, or if a job is located in a high unemployment county, the amount of the credit is increased by an additional two thousand dollars ($2,000) per job.
Area Development Tier Amount of Credit
Tier One $12,500
Tier Two 5,000
Tier Three 750"
BACK TO WORK INCENTIVE FUND
SECTION 24.7.(a) From the funds appropriated in statewide reserve for the Back To Work Incentive Fund, the Department of Revenue, in consultation with the Office of the North Carolina Small Business Commissioner in the North Carolina Department of Commerce, shall implement a Back to Work Incentive program to ensure payments are made to eligible small businesses for hiring and retaining eligible new workers who were previously unemployed.
SECTION 24.7.(b) Business Eligibility. – A business that satisfies all of the following conditions is eligible for a payment under this section:
(1) The business must have claimed and be eligible for the federal payroll tax deduction under the federal HIRE Act [26 U.S.C. § 3111(d)].
(2) The business must have claimed Form 941, Employers Quarterly Federal Tax Return, for consecutive quarters beginning with the third quarter of 2010.
(3) The business must employ 25 or fewer employees. A business that employs 25 or fewer employees is not rendered ineligible for payments under the program by hiring new eligible employees that bring the total number of employees in the business to a number in excess of 25.
(4) The business must have a North Carolina state withholding responsibility under G.S. 105‑163.2.
(5) The business must be compliant with North Carolina tax laws. The business is not eligible for a payment under this section if, at the time the business applies for the payment, the business has received a notice of an overdue tax debt and that overdue tax debt has not been satisfied or otherwise resolved.
(6) An eligible business does not include the United States, any state, or any political subdivision thereof, or any instrumentality of the foregoing.
SECTION 24.7.(c) Individual Eligibility. – An individual who satisfies all of the following conditions is an eligible new worker under this section:
(1) An individual must complete and sign Form W‑11 or similar statement under penalties of perjury that he or she has not been employed for more than 40 hours during the 60‑day period ending on the date the employee begins employment.
(2) An individual must begin employment after July 1, 2010, and before January 1, 2011, in a full‑time position. A full‑time position requires at least 1,600 hours of work per year and is intended to be held by one employee during the entire year.
(3) An individual must work in North Carolina and have a valid North Carolina drivers license or North Carolina ID card.
(4) An individual cannot be employed to replace another employee unless the other employee separated from employment voluntarily or for cause.
(5) An individual cannot be related to the employer. An employee is related to the employer if he or she is the employer's child or a descendent of the employer's child, employer's sibling or stepsibling, employer's parent or an ancestor of the employer's parent, employer's stepparent, employer's niece or nephew, employer's aunt or uncle, or employer's in‑law. An employee also is related to an employer if he or she is related to anyone who owns more than fifty percent (50%) of the employer's outstanding stock or capital and profits interest or is the employer's dependent or a dependent of anyone who owns more than fifty percent (50%) of the employer's outstanding stock or capital and profits interest.
SECTION 24.7.(d) Payment. – A business that meets the eligibility requirements in subsection (b) of this section and hires an eligible new worker under subsection (c) of this section may receive a payment of one thousand dollars ($1,000) per new worker.
SECTION 24.7.(e) Cap. – The payments allowed under this section may not exceed six thousand dollars ($6,000) per individual employer.
SECTION 24.7.(f) Total Amount. – The total amount of all payments made under this section to eligible businesses that hire eligible new workers shall not exceed fifteen million dollars ($15,000,000). If the applications received under subsection (g) exceed this maximum amount, payments shall be distributed on a first come, first served basis until all funds are exhausted.
SECTION 24.7.(g) Application. – The Secretary of Revenue is directed to develop an application process and timetable that enables payments to be made to eligible businesses after proof that the businesses have hired and retained eligible new employees for a period of at least three months. The funds allocated under this provision must be allocated to eligible businesses no later than June 30, 2011. The Secretary shall set a deadline for receipt of applications that is no later than May 15, 2011. The application must include the following information:
(1) Completed and signed Form W‑11 or similar statement under penalties of perjury that he or she has not been employed for more than 40 hours during the 60‑day period ending on the date the employee begins employment.
(2) Completed and signed Form 941, Employers Quarterly Federal Tax Return, for consecutive quarters beginning with the third quarter of 2010.
(3) Any additional supporting documentation required by the Secretary.
SECTION 24.7.(h) No more than three percent (3%) of the funds appropriated to the reserve may be used by the Secretary or Revenue and Secretary of Commerce to administer the Back to Work Incentive program.
SECTION 24.7.(i) G.S. 105‑259.16E(b) is amended by adding a new subdivision to read:
"(40) To provide information to the Office of the Small Business Commissioner in the North Carolina Department of Commerce to assist in administering and processing payments to businesses eligible for a Back to Work payment as authorized in the Appropriations Act of 2010."
PART XXV. MISCELLANEOUS PROVISIONS
STATE BUDGET ACT APPLIES
SECTION 25.1. The provisions of the State Budget Act, Chapter 143C of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.
MOST TEXT APPLIES ONLY TO THE 2010‑2011 FISCAL YEAR
SECTION 25.2. Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2010‑2011 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2010‑2011 fiscal year.
EFFECT OF HEADINGS
SECTION 25.3. 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.
APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
SECTION 25.4.(a) Except where expressly repealed or amended by this act, the provisions of S.L. 2009‑451 and S.L. 2009‑575 remain in effect.
SECTION 25.4.(b) Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 2010‑2011 fiscal year in S.L. 2009‑451 and S.L. 2009‑575 that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes.
SEVERABILITY CLAUSE
SECTION 25.5. 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 25.6. Except as otherwise provided, this act becomes effective July 1, 2010.