GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S 1
SENATE BILL 907*
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Short Title: Governor's Budget. |
(Public) |
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Sponsors: |
Senators Brunstetter, Hunt, and Stevens (Primary Sponsors). |
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Referred to: |
Appropriations/Base Budget. |
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May 30, 2012
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, as recommended by the governor and introduced by the appropriations committee chairs pursuant to g.s. 143C-5-1.
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 2012."
PART II. 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, 2013, according to the schedule that follows. Amounts set out in brackets are reductions from General Fund appropriations for the 2012‑2013 fiscal year.
Current Operations General Fund FY 2012‑2013
Adjustments
EDUCATION
Community Colleges System Office $ 53,504,897
Department of Public Instruction 562,253,440
University of North Carolina Board of Governors
Appalachian State University 260,876
East Carolina University
Academic Affairs 4,447,287
Health Affairs 0
Elizabeth City State University 0
Fayetteville State University 473,656
North Carolina Central University 0
North Carolina School of the Arts 0
North Carolina State University
Academic Affairs 3,346,252
Agricultural Extension 0
Agricultural Research 0
University of North Carolina at Asheville 0
University of North Carolina at Chapel Hill
Academic Affairs 0
Health Affairs 0
Area Health Education Centers 0
University of North Carolina at Charlotte 0
University of North Carolina at Greensboro 103,534
University of North Carolina at Pembroke 0
University of North Carolina at Wilmington 434,038
NCA&T 0
Western Carolina University 0
Winston‑Salem State University 0
General Administration 10,558,141
University Institutional Programs 85,960,578
UNC Related Educational Programs 35,000,000
UNC Financial Aid for Private Colleges 4,500,000
North Carolina School of Science and Mathematics 0
UNC Hospitals at Chapel Hill 0
Total University of North Carolina Board of Governors $ 145,084,362
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Division of Central Management and Support $ 13,220,524
Division of Aging and Adult Services 4,875,649
Division of Services for the Blind and Deaf/Hard of Hearing (168,336)
Division of Child Development 43,184,601
Division of Health Service Regulation 1,892,559
Division of Medical Assistance 107,557,158
Division of Mental Health, Developmental Disabilities,
and Substance Abuse Services 6,823,019
NC Health Choice (2,802,057)
Division of Public Health 10,826,775
Division of Social Services (9,079,116)
Division of Vocation Rehabilitation 0
Total Health and Human Services $ 176,330,776
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 305,449
Department of Commerce
Commerce 20,100,713
Commerce State‑Aid 3,000,000
NC Biotechnology Center 525,000
Rural Economic Development Center 20,000,000
Department of Environment and Natural Resources
Environment and Natural Resources 12,164,447
Wildlife Resources Commission 443,821
Clean Water Management Trust Fund 0
Department of Labor (300,000)
JUSTICE AND PUBLIC SAFETY
Department of Public Safety (8,576,508)
Judicial Department 8,893,777
Judicial Department Indigent Defense 0
Department of Justice 1,381,721
GENERAL GOVERNMENT
Department of Administration 10,121,098
Office of Administrative Hearings (41,423)
Department of State Auditor (160,141)
Office of State Controller (425,534)
Department of Cultural Resources
Cultural Resources 139,454
Roanoke Island Commission 0
State Board of Elections 612,670
General Assembly 1,670,630
Office of the Governor
Office of the Governor (47,412)
Office of State Budget and Management 1,218,071
OSBM Reserve for Special Appropriations 1,100,000
Housing Finance Agency (96,731)
Department of Insurance
Insurance 454,091
Insurance Volunteer Safety Workers' Compensation 0
Office of Lieutenant Governor 0
Department of Revenue 998,765
Department of Secretary of State (159,818)
Department of State Treasurer
State Treasurer (66,218)
State Treasurer Retirement/Benefits 0
RESERVES, ADJUSTMENTS, CAPITAL, AND DEBT SERVICE
Capital Improvements 13,678,000
General Debt Service (50,904,635)
Compensation Increase Reserve 40,692,786
Continuation Review Reserve (35,576,758)
Job Development Incentive Grants Reserve (6,500,000)
Retirement Rate Adjustment Reserve (2,181,400)
TOTAL CURRENT OPERATIONS GENERAL FUND $ 969,637,390
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, 2013, according to the following schedule:
2012‑2013
Current Operations Highway Fund Adjustments
DOT General Administration $ 14,033,301
Highway Division Administration
State Match for Federal Aid‑Planning and Research
Construction Program:
State Secondary System
Division Small Urban Construction
Discretionary Funds
Spot Safety Improvements
Access and Public Services Roads
Total Construction Program ‑
Maintenance Program
Primary System (23,688,886)
Secondary System (35,503,330)
System Preservation (34,613,743)
Contract Resurfacing (56,744,276)
General Maintenance Reserve 794,439
Total Maintenance Program $ (149,735,796)
Ferry Operations 3,032,000
State Aid to Municipalities (912,604)
State Aid to Railroads
State Aid for Public Transportation
Airports
OSHA
Governor's Highway Safety Program
Division of Motor Vehicles 48,259,662
Total Department of Transportation $ (85,323,437)
Appropriations to Other State Agencies:
Agriculture
Revenue
State Treasurer
Office of State Controller‑BEST Shared Services
Public Instruction Civil Penalties 7,880,000
Public Instruction Driver Education (207,961)
Public Safety MSCAP State Match 350,000
DENR LUST Trust Fund 3,998,330
DHHS Chemical Test ___________
Total Other State Agencies 12,020,369
Reserves and Transfers:
Minority Contractor Development
State Fire Protection Grant
Storm‑Water Discharge Permit
Reserve for Visitor's Centers
Global TransPark
Reserve for Continuation Review (47,713,947)
Reserve for Legislative Salary Increase 3,112,393
Reserve for Retirement Contribution (COLA) (850,378)
Total Reserves and Transfers (45,451,932)
Capital Improvements 625,000
Total Highway Fund Appropriation $ (118,130,000)
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. The Highway Fund availability used in developing modifications to the 2012‑13 Highway Fund budget contained in this act is shown below:
2012‑2013
Highway Fund Availability Statement Recommended
Beginning Credit Balance ‑
Estimated Revenue $ 2,016,030,000
Estimated Reversions ‑
Total Highway Fund Availability $ 2,016,030,000
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, 2013, according to the following schedule:
2012‑2013
Highway Trust Fund Adjustments
Department of Transportation:
Maximum Allowance for Administration $ (1,516,320)
Construction Allocation:
Intrastate System (18,505,930)
Urban Loop System (7,483,027)
Secondary Roads (2,143,020)
NC Mobility Fund 45,000,000
State Aid to Municipalities (1,941,703)
Bonds:
Bond Redemption
Bond Interest
NC Turnpike Authority
DOT Prioritization Reserve (45,000,000)
Transfer to the Highway Fund
Transfer to the General Fund
Total Highway Trust Fund Appropriations $ (31,590,000)
HIGHWAY TRUST FUND AVAILABILITY STATEMENT
SECTION 4.2. The Highway Trust Fund availability used in developing modifications to the 2012‑2013 Highway Trust Fund budget contained in this act is shown below:
2012‑2013
Highway Trust Fund Availability Statement Recommended
Beginning Credit Balance ‑
Estimated Revenue $ 1,055,320,000
Estimated Reversions ‑
Total Highway Trust Fund Availability $ 1,055,320,000
PART V. OTHER AVAILABILITY AND APPROPRIATIONS
EDUCATION LOTTERY
SECTION 5.1.(a) Notwithstanding 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 dollars ($441,000,000) for the 2012‑2013 fiscal year.
SECTION 5.1.(b) Notwithstanding G.S. 18C‑164, the appropriations made from the Education Lottery Fund for the 2012‑2013 fiscal year are as follows:
Teachers in Early Grades $ 220,643,188
Prekindergarten Program $ 63,135,709
Public School Building Capital Fund $ 116,026,370
Scholarships for Needy Students $ 30,450,000
UNC Need‑Based Financial Aid $ 10,744,733
Total Appropriation $ 441,000,000
SECTION 5.1.(c) Notwithstanding G.S. 18C‑164, the North Carolina State Lottery Commission shall not transfer funds to the Education Lottery Reserve Fund for the 2011‑2012 fiscal year or the 2012‑2013 fiscal year.
SECTION 5.1.(d) Notwithstanding G.S. 18C‑164(c), G.S. 115C‑546.2(d), or any other provision of law, funds appropriated in this section to the Public School Building Capital Fund for the 2012‑2013 fiscal year shall be allocated to counties on the basis of average daily membership (ADM).
SECTION 5.1.(e) Notwithstanding G.S. 18C‑164(c), Article 35A of Chapter 115C of the General Statutes, or any other provision of law, the funds appropriated in this section for UNC Need‑Based Financial Aid shall be administered in accordance with the policy adopted by the Board of Governors of The University of North Carolina.
SECTION 5.1.(f) Notwithstanding G.S. 18C‑164(f), if the actual net lottery revenues for the 2012‑2013 fiscal year exceed the amounts appropriated in subsection (b) of this section, the excess net lottery revenues shall be allocated for school capital on the basis of average daily membership.
SECTION 5.1.(g) Notwithstanding G.S. 18C‑164(f), if the actual net lottery revenues for the 2011‑2012 fiscal year exceed the amounts appropriated in Section 5.4(b) of Session Law 2011‑145, the excess net lottery revenues shall be allocated for school capital on the basis of average daily membership.
SECTION 5.1.(h) Section 5.1(g) becomes effective June 30, 2012.
APPROPRIATION OF OTHER FUNDS AMENDED
SECTION 5.2. Subsection 5.1(c) of Session Law 2011‑145 is repealed.
OTHER RECEIPTS FROM PENDING GRANT AWARDS AMENDED
SECTION 5.3. Section 5.2 of Session Law 2011‑145 reads as rewritten:
"SECTION 5.2.(a) Notwithstanding G.S. 143C‑6‑4,
State agencies may, with approval of the Director of the Budget and after
consultation with the Joint Legislative Commission on Governmental Operations, Budget,
spend funds received from grants awarded subsequent to the enactment of
this act.
"SECTION 5.2.(b) 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 a temporary or time‑limited
basis or on a permanent full‑time basis if the grant is intended to be
recurring. The Office of State Budget and Management shall consult with
report to the Joint Legislative Commission on Governmental Operations prior
to expending on any funds received from grant awards on a monthly
basis. Funds received from such grants are hereby appropriated and shall be
incorporated into the authorized budget of the recipient State agency.
"SECTION 5.2.(c) Notwithstanding the
provisions of this section, no State agency may accept a grant not anticipated
in this act if acceptance of the grant would obligate the State to make future
expenditures relating to the program receiving the grant or would otherwise
result in a financial obligation as a consequence of accepting the grant funds.
"SECTION 5.2.(d) Notwithstanding G.S. 143C‑6‑4, the Department of Public Instruction may spend funds received from the following grants for the 2011‑2012 fiscal year awarded subsequent to the enactment of this act for up to the specified amounts:
(1) Child Nutrition Equipment Assistance $815,762
(2) Verizon Thinkfinity State Education Partnership $ 40,000
(3) State Abstinence Education Program $1,585,347.
Neither the approval of the Director of the Budget nor consultation with the Joint Legislative Commission on Governmental Operations is required prior to the expenditure of these funds. The provisions of subsection (b) of this section do not apply to these funds."
INFORMATION TECHNOLOGY FUND AVAILABILITY AND APPROPRIATION
SECTION 5.4. Section 6A.1(a) of S.L. 2011‑145 is repealed. Appropriations are made from the Information Technology Fund for the 2012‑2013 fiscal biennium as follows:
FY 2012‑2013
Information Technology Operations
Center for Geographic Information and Analysis $599,347
Enterprise Security Risk Management $864,148
Enterprise Project Management Office $1,473,285
Architecture and Engineering $1,116,426
Criminal Justice Information Network $166,422
Statewide IT Procurement $0
State Web Site $0
ITS Overhead Reduction ($91,486)
Subtotal Information Technology Operations $4,128,142
Information Technology Projects
State Portal $0
IT Consolidation $250,000
Transfer to OSC for E‑Forms $500,000
Subtotal Information Technology Projects $750,000
Data Integration License Funding Transfer to State Agencies $1,200,000
Position Transfer to Office of State Budget and Management $105,000
Total $6,183,142
IT CLOUD STRATEGY
SECTION 5.5. The Office of Information Technology Services (ITS) shall develop and implement a state cloud strategy and private cloud, in a cost‑effective manner, including policies that delineate when information should be in a private cloud rather than a public cloud. The State shall have complete control and ownership of data in the private cloud. In order to be able to move to a fully shared cloud environment, agencies shall work under the direction of ITS to modify and update their applications. In addition, State agencies shall use the private cloud unless exempted by the State CIO. In support of this initiative, ITS shall:
(1) Utilize the State's existing infrastructure resources to the greatest extent possible and modernize existing infrastructure as required to build the cloud.
(2) Create a pool of infrastructure resources that can be scaled up or down in response to business needs. These infrastructure resources include, but are not limited to, computing resources such as processing power, memory, network resources, and storage.
(3) Build redundancy into the infrastructure to support high availability and disaster recovery.
(4) Provide a service‑centric approach to computing resources. Users of computing resources shall be able to easily access powerful predefined computing environments, based on their needs.
(5) Provide self‑service ability to provision and de‑provision as requested by users while maintaining high levels of security.
(6) Provide a mechanism to capture usage information and enable chargeback integration with the billing system.
(7) Implement cloud management and monitoring tools to maintain complete control of private cloud resources, automate provisioning, de‑provisioning, scheduling, and reserving resource capacity.
INTERNAL AUDITING
SECTION 5.6. G.S. 143‑745(a) reads as rewritten:
"(a) For the purposes of this section:
(1) "Agency head" means the Governor, a Council of State member, a cabinet secretary, the President of The University of North Carolina, and the Superintendent of Public Instruction.
(2) "State agency" means each department
created pursuant to Chapter 143A or 143B of the General Statutes, The
University of North Carolina, and the Department of Public Instruction.
Instruction, and the Office of Information Technology Services."
GEOGRAPHIC INFORMATION AND ANALYSIS
SECTION 5.7. G.S. 147‑33.82(a) is amended by adding a new subdivision to read:
"(10) Provide geographic information systems services through the Center for Geographic Information and Analysis on a cost recovery basis. The Office of Information Technology Services and the Center for Geographic Information and Analysis may contract for funding from federal or other sources to conduct or provide geographic information systems services for public purposes."
PART VI. GENERAL PROVISIONS
Repeal REQUIREMENT FOR MAILING LIST CERTIFICATIONS
SECTION 6.1. G.S. 143‑169.1 is repealed.
AMEND STATE BUDGET ACT
SECTION 6.2.(a) G.S. 143C‑1‑1(d) is amended by adding a new subdivision to read:
"(1a) 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 6.2.(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.
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 6.2.(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 in accordance with 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 6.2.(d) G.S. 143C‑6‑4 reads as rewritten:
"§ 143C‑6‑4. Budget Adjustments Authorized.
(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 North Carolina 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, 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%) percent (3%), without prior
consultation with the Joint Legislative Commission on Governmental Operations.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.
(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) 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 6.2.(e) G.S. 143C‑8‑7 reads as rewritten:
"§ 143C‑8‑7. When a State agency may begin a capital improvement project.
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.
The Director of the Budget may authorize the planning or 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, or any other non‑General Fund money available to the State agency or institution. Prior to authorizing a capital improvement project pursuant to this subsection, the Director shall report to the Joint Legislative Commission on Governmental Operations."
AMEND PRIOR CONSULTATION STATUTE
SECTION 6.3. G.S. 120‑76.1(b) reads as rewritten:
"(b) Consultation by Agencies, Boards, and
Commission. 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."
AMEND SAVINGS RESERVE ACCOUNT
SECTION 6.4. Chapter 143C‑4‑2 reads as rewritten:
"§ 143C‑4‑2. Savings Reserve Account and appropriation of General Fund unreserved fund balance.
(a) Creation and Source of Funds. The Savings
Reserve Account is established as a reserve in the General Fund. The Controller
shall reserve to the Savings Reserve Account one‑fourth one‑half
of any unreserved fund balance, as determined on a cash basis, remaining in
the General Fund at the end of each fiscal year.
(b) Use of Funds. The Savings Reserve Account is a component of the unappropriated General Fund balance. Funds reserved to the Savings Reserve Account shall be available for expenditure only upon an act of appropriation by the General Assembly.
(c) Goal for Savings Reserve Account Balance. The General Assembly recognizes the need to establish and maintain sufficient reserves to address unanticipated events and circumstances such as natural disasters, economic downturns, threats to public safety, health, and welfare, and other emergencies. It is a goal of the General Assembly and the State to accumulate and maintain a balance in the Savings Reserve Account equal to or greater than eight percent (8%) of the prior year's General Fund operating budget."
ESTABLiSH North Carolina Global Competitiveness Reserve Account
SECTION 6.5.(a) Article 4 of Chapter 143C of the General Statutes is amended by adding a new section to read:
"§ 143C‑4‑3.1. North Carolina Global Competitiveness Reserve Account.
(a) Creation and Source of Funds. The North Carolina Global Competitiveness Reserve Account is established as a reserve in the General Fund. The State Controller shall reserve to the North Carolina Global Competitiveness Reserve Account one‑fourth of any unreserved fund balance, as determined on a cash basis, remaining in the General Fund at the end of each fiscal year.
(b) Use of Funds. The funds in the North Carolina Global Competitiveness Reserve shall be used by the Secretary to secure transformational business expansion projects of statewide or regional significance and to fund the cost of site infrastructure for major economic development projects.
(c) Use of Funds. Funds Appropriated Funds reserved to the North Carolina Global Competitiveness Reserve are hereby appropriated."
SECTION 6.5.(b) Subsection a of this section becomes effective June 30, 2012.
PART VII. PUBLIC SCHOOLS
RESTORE LEA BUDGET FLEXIBILITY REDUCTION
SECTION 7.1.(a) Section 7.20 of Session law 2011‑145 is repealed.
SECTION 7.1.(b) This section becomes effective July 1, 2012.
LEA BUDGETARY FLEXIBILITY
SECTION 7.2. Section 7.21 of Session Law 2011‑145 reads as rewritten:
"SECTION 7.21.(a) For fiscal years 2011‑2012
and year 2012‑2013, the State Board of Education is
authorized to extend shall revise its emergency rules, in accordance
with G.S. 150B‑21.1A, granting maximum limited flexibility
to local school administrative units regarding the expenditure of State funds.
These rules shall not be subject to the limitations on transfers of funds
between funding allotment categories set out in G.S. 115C‑105.25.
However, these rules shall not permit the following transfers:
(1) The transfer of funds into central office administration.
(2) The transfer of funds from the classroom teachers allotment to any allotment other than teacher assistants allotment.
(3) The transfer of funds from the teacher assistants allotment to any allotment other than the classroom teachers allotment.
"SECTION 7.21.(b) For fiscal years 2011‑2012
and year 2012‑2013, local school administrative units shall
make every effort to reduce spending whenever and wherever such budget
reductions are appropriate, manage spending with the goal of
protecting direct classroom services such as teacher assistants and classroom
teachers. In making reductions, local school administrative units shall first
consider reductions to central office administration and other administrative
functions. 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. Class
size requirements in grades K‑3 shall remain unchanged. For fiscal
year 2012‑2013, local school administrative units shall comply with G.S. 115C‑301
regarding class size restrictions in grades 4‑12.
"SECTION 7.21.(c) The restored LEA flexibility reduction shall be used to maintain school‑based personnel positions currently supported with the federal funds authorized under the Keep Our Educators Working Act: Title I of Public Law 111‑226.
"SECTION 7.21 (d) No later than 30 days of the date this act becomes law, each local school administrative unit shall report to the State Board of Education, Office of State Budget and Management, and the Department of Public Instruction documenting the methods used to protect classroom‑based personnel. This report shall include the number of classroom‑based personnel retained as required by subsection (c) of this section."
TESTING AND ASSESSMENT PROGRAM
SECTION 7.3.(a) G.S. 115C‑174.11 reads as rewritten:
"§ 115C‑174.11. Components of the testing and assessment program.
(a) Diagnostic Assessment Instruments for First
and Second Grades. Grades K‑5. The State Board of Education
shall adopt and provide to the local school administrative units
developmentally appropriate individualized diagnostic assessment
instruments consistent with the Basic Education Program for the first and
second grades, rather than standardized tests. for grades K‑5. Local
school administrative units may use these assessment instruments provided to
them by the State Board for first and second grade students, and shall not use
standardized tests except as required as a condition of receiving federal
grants. The goal of the diagnostic assessments for grades K‑5 is
to ensure that all students are grade‑level proficient in pre‑reading/reading
skills by the conclusion of the school year.
(b) Repealed by Session Laws 2009‑451, s. 7.20(c), effective July 1, 2009.
(c) Annual Testing Program.
(1) The State Board of Education shall adopt the tests for grades three through 12 that are required by federal law or as a condition of a federal grant. These tests shall be designed to measure progress toward reading, communication skills, and mathematics for grades three through eight, and toward competencies for grades nine through 12. Students who do not pass the tests adopted for eighth grade shall be provided remedial instruction in the ninth grade.
(2) If the State Board of Education finds that additional testing in grades three through 12 is desirable to allow comparisons with national indicators of student achievement, that testing shall be conducted with the smallest size sample of students necessary to assure valid comparisons with other states.
(3) The State Board of Education shall continue to participate in the development of the Common Core State Standards in conjunction with the consortium of other states, review all national assessments developed by both multistate consortia, and implement the assessments that the State Board deems most appropriate to assess student achievement on the Common Core State Standards.
(4) To the extent funds are made available, the State Board shall plan for and require the administration of the ACT test for all students in the eleventh grade unless the student has already taken a comparable test and scored at or above a level set by the State Board.
(d) Except as provided in subsection (c) of this section, the State Board of Education shall not require the public schools to administer any standardized tests except for those required by federal law or as a condition of a federal grant.
The State Board of Education shall adopt and provide to local school administrative units all tests required by federal law or as a condition of a federal grant."
SECTION 7.3.(b) G.S. 115C‑174.22 reads as rewritten:
"Part 4. Student Diagnostic Tests.Assessments.
"§ 115C‑174.22. Tools for student learning.
To the extent funds are made available for this purpose, the
State Board shall plan for and require the administration of diagnostic tests
assessments in the eighth and tenth grades that align to the ACT
test in order to help diagnose student learning and provide for students an
indication of whether they are on track to be remediation‑free at a
community college or university.
The State Board of Education shall ensure ongoing support to school personnel to provide appropriate grade‑level instructional interventions based on individual student diagnostic assessment results for students in grades K‑12."
SECTION 7.3.(c) This section applies beginning with the 2012‑2013 school year.
CAREER AND COLLEGE PROMISE SHALL INCLUDE APPRENTICESHIP OPPORTUNITIES FOR HIGH SCHOOL STUDENTS
SECTION 7.4.(a) The State Board of Education and the North Carolina Community College System shall incorporate apprenticeship opportunities for high school students as a component of the Career Technical Pathway in the Career and College Promise Initiative.
SECTION 7.4.(b) The two parties shall complete this incorporation no later than November 1, 2012, so that students will have the opportunity to participate in apprenticeships beginning with spring semester registration in the 2013‑2014 school year.
NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS
SECTION 7.5. Section 7.22 of S.L. 2011‑145 reads as rewritten:
"SECTION 7.22.(a) The North Carolina Virtual Public School (NCVPS) program shall report to the State Board of Education and shall maintain an administrative office at the Department of Public Instruction.
"SECTION 7.22.(b) The Director of NCVPS shall ensure that students residing in rural and low‑wealth county local school administrative units have access to e‑learning course offerings in order to expand available instructional opportunities. E‑learning instructional opportunities shall include courses required as part of the standard course of study for high school graduation and AP offerings not otherwise available.
"SECTION 7.22.(c) Section 7.4 of S.L. 2010‑31 is repealed.
"SECTION 7.22.(d) The State Board of Education shall take the following steps to implement an allotment formula for NCVPS beginning with the 2011‑2012 school year:
(1) Project NCVPS student enrollment by semester and year‑long course types for each local school administrative unit and charter school.
(2) Establish a per course teacher payment structure for the instructional costs of NCVPS. In establishing this payment structure, the Board shall consider the following:
a. The payment structure is based on a total compensation analysis to ensure NCVPS teacher pay has parity with similar programs. The total compensation analysis shall take into account salaries, benefits, and work effort to ensure valid comparisons between occupations.
b. The effects any change in NCVPS teacher payments may have on the attraction and retention of NCVPS teachers.
(3) Develop a per student fee structure for in‑State students that is based on the per course teacher pay structure. The fee structure for in‑State students shall ensure that the projected cost for local school administrative units and charter schools equals the projected instructional cost for NCVPS courses.
(4) Multiply the per course fees for in‑State students by the projected enrollment by course type to determine the total instructional cost for each local school administrative unit and charter school.
(5) Transfer a dollar amount equal to seventy‑five percent (75%) of the local school administrative unit's or charter school's projected instructional cost from the classroom teacher allotment to NCVPS.
(6) No later than February 21 of each year, calculate the actual instructional cost for each local school administrative unit and charter school based upon actual NCVPS enrollment as of that date.
(7) Subtract the amount transferred pursuant to subdivision (5) of this subsection from the actual instructional cost for each unit or charter school and transfer the remaining dollar amount owed, up to a maximum of one hundred percent (100%) of the projected cost.
(8) Develop and implement a policy regarding returning funds to local school administrative units and charter schools in cases where the amount transferred pursuant to subdivision (5) of this subsection exceeds the actual instructional costs. NCVPS shall use funds transferred to it to provide the NCVPS program at no cost to all students in North Carolina who are enrolled in North Carolina's public schools, Department of Defense schools, and schools operated by the Bureau of Indian Affairs.
"SECTION 7.22.(e) In establishing the fee structure and payment structure for NCVPS, the State Board shall consider recommendations from the eLearning Commission and the NCVPS Advisory Board.
"SECTION 7.22.(f) The State Board shall establish a separate per student tuition for out‑of‑state students, home‑schooled students, and private school students, which shall be adjusted upward from the in‑State student fee structure by an amount determined appropriate by the State Board.
"SECTION 7.22.(g) The Board shall direct NCVPS to develop a plan to generate revenue from the sale of courses to out‑of‑state educational entities. Revenue generated by NCVPS shall be used to offset instructional costs to local school administrative units and charter schools. NCVPS shall submit its plan to the Board by September 15, 2011.
"SECTION 7.22.(h) Beginning in 2011, the Director of NCVPS shall submit an annual report on NCVPS to the State Board of Education no later than December 1 of each year. The report shall use data from the previous fiscal year and shall include statistics on actual versus projected costs to local school administrative units and charter schools, student enrollment, virtual teacher salaries, and measures of academic achievement.
The Director of NCVPS shall continue to ensure the following:
(1) Course quality standards are established and met.
(2) All e‑learning opportunities other than virtual charter schools offered by State‑funded entities to public school students are consolidated under the NCVPS program, eliminating course duplication.
(3) All courses offered through NCVPS are aligned to the North Carolina Standard Course of Study.
"SECTION 7.22.(i) The State Board of Education shall reduce each local school administrative unit's or charter school's classroom teacher allotment, or other allotment, as determined by the State Board of Education, on the basis of ADM in grades 6‑12 to provide the sum of two million eight hundred sixty‑six thousand nine hundred twenty‑three dollars ($2,866,923) for the State‑level operations and administration of NCVPS for the 2011‑2012 fiscal year. The allotment reduction for State‑level operations and administration shall continue in future fiscal years and be adjusted annually based upon the percentage growth in NCVPS enrollment, ensuring the expansion of services due to increased virtual student enrollment.
"SECTION 7.22.(j) For fiscal year 2011‑2012, the State Board of Education shall reduce each local school administrative unit's or charter school's classroom teacher allotment, or other allotment, as determined by the State Board of Education, on the basis of ADM in grades 6‑12 to provide the sum of two million dollars ($2,000,000) in order to create an NCVPS enrollment reserve. The NCVPS enrollment reserve shall be used to cover the NCVPS instructional costs of local school administrative units or charter schools with enrollments exceeding projected NCVPS enrollment.
Beginning in fiscal year 2012‑2013, and annually thereafter, the State Board of Education shall reduce each local school administrative unit's or charter school's classroom teacher allotment, or other allotment, as determined by the State Board of Education, on the basis of ADM in grades 6‑12 an amount that is the difference between two million dollars ($2,000,000) and the balance of the NCVPS enrollment reserve.
Amounts available in the NCVPS enrollment reserve shall not revert.
"SECTION 7.22.(k) The State Board shall use
only funds provided through the North Carolina Virtual Public Schools Allotment
Formula and the NCVPS enrollment reserve as set forth in this section to fund
instructional costs of NCVPS.
"SECTION 7.22.(l) G.S. 66‑58(c) is amended by adding a new subdivision to read:
"(c) The provisions of subsection (a) shall not prohibit:
(20) The sale by the State Board of Education of NCVPS courses to home schools, private schools, and out‑of‑state educational entities."
RESTORE NORTH CAROLINA TEACHING FELLOWS COMMISSION
SECTION 7.6. Effective July 1, 2012, Section 1.38 of Session Law 2011‑266 is repealed.
TEACHING FELLOWS ADMINISTRATIVE EXPENDITURES
SECTION 7.7. G.S. 115C‑363.23A(f) reads as rewritten:
"(f) All funds appropriated to or otherwise received by the Teaching Fellows Program for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund shall be used for scholarship loans granted under the Teaching Fellows Program. With the prior approval of the General Assembly in the Current Operations Appropriations Act, the revolving fund may also be used for campus and summer program support, and costs related to disbursement of awards and collection of loan repayments.
The Public School Forum, as administrator for the Teaching
Fellows Program, may use up to six hundred thousand dollars ($600,000) eight
hundred ten thousand dollars ($810,000) annually from the fund balance for
costs associated with administration of the Teaching Fellows Program."
RESIDENTIAL SCHOOLS
SECTION 7.8.(a) Notwithstanding G.S. 146‑30, the Department of Public Instruction shall retain all proceeds generated from the rental of building space on the Governor Morehead School campus.
SECTION 7.8.(b) The Department of Public Instruction shall use all receipts generated from these leases for the purpose of staffing and operating the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School. Receipts from this source shall not be used to support administrative functions within the Department.
TEACHER SALARY PAYMENTS
SECTION 7.9.(a) Section 5 of Session Law 2011‑379 is repealed.
SECTION 7.9.(b) This section becomes effective June 30, 2012.
FUNDS FOR CHILDREN WITH DISABILITIES
SECTION 7.10. The State Board of Education shall allocate additional funds for children with disabilities on the basis of three thousand seven hundred nine dollars ($3,709) 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 2012‑2013 allocated average daily membership in the local school administrative unit. The dollar amounts allocated under this section for children with disabilities shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities.
FUNDS FOR ACADEMICALLY GIFTED CHILDREN
SECTION 7.11. The State Board of Education shall allocate additional funds for academically or intellectually gifted children on the basis of one thousand two hundred twenty‑three dollars and ninety‑nine cents ($1,223.99) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2012‑2013 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.
UNIFORM EDUCATION REPORTING SYSTEM (UERS) FUNDS
SECTION 7.12.(a) Funds appropriated for the Uniform Education Reporting System shall not revert at the end of the 2011‑2012 fiscal year.
SECTION 7.12.(b) This section becomes effective June 30, 2012.
SCHOOL CAPITAL SUPPORT
SECTION 7.13. G.S. 115C‑546.2 reads as rewritten:
"§ 115C‑546.2. Allocations from the Fund; uses; expenditures; reversion to General Fund; matching requirements.
(a) Of the The monies credited to the
Fund by the Secretary of Revenue pursuant to G.S. 115C‑546.1(b),
the State Board of Education may allocate up to one million dollars
($1,000,000) each year to the Department of Public Instruction. These funds
shall be used by the Plant Operation Section of the School Support Division to
assist each local school administrative unit with effective energy and
environmental management, effective water management, hazardous material
management, clean air quality, and engineering support for safe, effective
environmental practices. The remainder of the monies in the Fund G.S. 115C‑546.1(b)
shall be allocated to the counties on a per average daily membership basis
according to the average daily membership for the budget year as determined and
certified by the State Board of Education. Interest earned on funds allocated
to each county shall be allocated to that county.
The Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee by April 15 of each year on the effectiveness of the program in accomplishing its purpose and on any other information requested by the Committee.
(b) Counties shall use monies in the Fund for capital outlay projects including the planning, construction, reconstruction, enlargement, improvement, repair, or renovation of public school buildings and for the purchase of land for public school buildings; for equipment to implement a local school technology plan that is approved pursuant to G.S. 115C‑102.6C; or for both. Monies used to implement a local school technology plan shall be transferred to the State School Technology Fund and allocated by that Fund to the local school administrative unit for equipment.
As used in this section, "public school buildings" only includes facilities for individual schools that are used for instructional and related purposes and does not include centralized administration, maintenance, or other facilities.
In the event a county finds that it does not need all or part of the funds allocated to it for capital outlay projects including the planning, construction, reconstruction, enlargement, improvement, repair, or renovation of public school buildings, for the purchase of land for public school buildings, or for equipment to implement a local school technology plan, the unneeded funds allocated to that county may be used to retire any indebtedness incurred by the county for public school facilities.
In the event a county finds that its public school building needs and its school technology needs can be met in a more timely fashion through the allocation of financial resources previously allocated for purposes other than school building needs or school technology needs and not restricted for use in meeting public school building needs or school technology needs, the county commissioners may, with the concurrence of the affected local Board of Education, use those financial resources to meet school building needs and school technology needs and may allocate the funds it receives under this Article for purposes other than school building needs or school technology needs to the extent that financial resources were redirected from such purposes. The concurrence described herein shall be secured in advance of the allocation of the previously unrestricted financial resources and shall be on a form prescribed by the Local Government Commission.
(c) Monies in the Fund allocated for capital projects shall be matched on the basis of one dollar of local funds for every three dollars of State funds. Monies in the Fund transferred to the State Technology Fund do not require a local match.
Revenue received from local sales and use taxes that is restricted for public school capital outlay purposes pursuant to G.S. 105‑502 or G.S. 105‑487 may be used to meet the local matching requirement. Funds expended by a county after July 1, 1986, for land acquisition, engineering fees, architectural fees, or other directly related costs for a public school building capital project that was not completed prior to July 1, 1987, may be used to meet the local match requirement.
(d) Monies Of the monies transferred
into the Fund in accordance with Chapter 18C of the General Statutes Statutes,
the State Board of Education may allocate up to one million five hundred
thousand dollars ($1,500,000) to the Department of Public Instruction. These
funds shall be used by the Plant Operation and School Planning Sections of the
School Support Division to assist each local school administrative unit with
effective energy and environmental management, effective water management,
hazardous material management, clean air quality, engineering support for safe,
effective environmental practices, evaluation of facility needs, construction
site analysis, planning and design technical assistance, and authorization of State
funding for school construction. The remainder shall be allocated for
capital projects for school construction projects as follows:
(1) A sum equal to sixty‑five percent (65%) of those monies transferred in accordance with G.S. 18C‑164 shall be allocated on a per average daily membership basis according to the average daily membership for the budget year as determined and certified by the State Board of Education.
(2) A sum equal to thirty‑five percent (35%) of those monies transferred in accordance with G.S. 18C‑164 shall be allocated to those local school administrative units located in whole or part in counties in which the effective county tax rate as a percentage of the State average effective tax rate is greater than one hundred percent (100%), with the following definitions applying to this subdivision:
a. "Effective county tax rate" means the actual county rate for the previous fiscal year, including any countywide supplemental taxes levied for the benefit of public schools, multiplied by a three‑year weighted average of the most recent annual sales assessment ratio studies.
b. "State average effective tax rate" means the average effective county tax rates for all counties.
c. "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(3) No county shall have to provide matching funds required under subsection (c) of this section.
(4) A county may use monies in this Fund to pay for school construction projects in local school administrative units and to retire indebtedness incurred for school construction projects.
(5) A county may not use monies in this Fund to pay for school technology needs."
LOCAL PLANS
SECTION 7.14. G.S. 115C‑150.7(d) reads as rewritten:
"(d) A plan shall remain in effect for no more
than three years; The local board of education shall review the plan at
least every three years; however, the local board may amend the plan as
often as it considers necessary or appropriate. Any changes to a plan shall be
submitted to the State Board of Education for its review and comments. The
local board shall consider the State Board's comments before it implements the
changes."
COOPERATIVE INNOVATIVE HIGH SCHOOL REPORTING
SECTION 7.15.(a) Section 7.19(d) of Session Law 2007‑323 is repealed.
SECTION 7.15.(b) Section 7.21 of Session Law 2007‑323 is repealed.
SECTION 7.15.(c) G.S. 115C‑238.55 reads as rewritten:
"§ 115C‑238.55. Evaluation of programs.
The State Board of Education and the governing Boards shall evaluate the success of students in programs approved under this Part. Success shall be measured by high school retention rates, high school completion rates, high school dropout rates, certification and associate degree completion, admission to four‑year institutions, postgraduation employment in career or study‑related fields, and employer satisfaction of employees who participated in and graduated from the programs. It shall also include (i) an accounting of how funds and personnel resources were utilized and their impact on student achievement, retention, and employability; and (ii) recommendations for improvement of the program. The Boards shall jointly report by January 15 of each year to the Joint Legislative Education Oversight Committee on the evaluation of these programs."
REPEAL OBSOLETE REPORTS
SECTION 7.16.(a) G.S. 115C‑276(t) is repealed.
SECTION 7.16.(b) Section 7.5(c) and Section 7.5(g) of Session Law 2010‑31 are repealed.
SECTION 7.16.(c) Section 7.19(c) of Session Law 2010‑31 is repealed.
SECTION 7.16.(d) G.S. 115C‑12(26) is repealed.
DIGITAL RESOURCES FOR K‑12
SECTION 7.17.(a) The State Board of Education shall develop a plan to implement the recommendations of Digital Education Resources for K‑12 Education Report developed by the eLearning Commission and reported to the State Board of Education in January 2012. The report includes North Carolina transitioning to digital resources as the primary form of educational materials, in place of traditional textbooks and printed supplemental materials, in K‑12 schools no later than June 30, 2016.
SECTION 7.17.(b) The plan shall include:
(1) Strategies for the Local Education Agencies (LEAs) to transition funding and resources from traditional textbooks to digital media;
(2) A priority for curriculum and materials for the national Common Core State Standards for mathematics and English language arts that have been adopted by North Carolina, 45 other states, and the District of Columbia;
(3) A time line for adopting and purchasing mathematics and English language arts textbooks that aligns with the time line for the adoption of the Common Core State Standards and assessments, since there is a national effort underway to develop high‑quality digital resources aligned with the Common Core State Standards that will replace traditional textbooks;
(4) Participation in multistate consortia to develop high‑quality, open education digital resources aligned with the Common Core State Standards for efficiency in budget and quality of resources;
(5) Guidelines and policies for technology requirements for K‑12 digital education resources, including:
a. Minimal specifications for the devices to be used by students to access digital resources.
b. Cost‑effective collaborative purchasing of devices for students that support the use of digital resources, building upon the work of the NC K‑12 Cloud Computing Collaborative Purchasing working group.
c. A State‑level process for the review and approval of digital education resources to ensure that high‑quality resources are used in North Carolina schools.
(6) Support for the development, by North Carolina colleges, schools, and organizations, of open education digital resources to meet specific North Carolina needs; and
(7) Development of a plan to prepare teachers to make effective use of digital resources and devices to support teaching and learning.
SECTION 7.17.(c) The plan shall be submitted to the Joint Education Oversight Committee and the Office of the Governor by March 15, 2013.
ADOPTION OF COMMON CORE STATE STANDARDS
SECTION 7.18. North Carolina, along with 45 other states and the District of Columbia, has voluntarily committed to adopting the K‑12 Common Core State Standards to help ensure that high school students graduate prepared to succeed in college and in a modern workforce. These standards and the supporting assessments ensure that North Carolina is using national standards to measure our students' progress. The State Board of Education has adopted the Mathematics and English Language Arts standards and shall continue to adopt the other curriculum area national standards developed in collaboration with the other states as they become available.
INVESTING IN INNOVATION GRANT
SECTION 7.19.(a) The federal Investing in Innovation Fund Grant: Validating Early College Strategies for Traditional Comprehensive High Schools awarded to the North Carolina New Schools Project for 2012‑2017, requires students to enroll in a community college course in the tenth grade. Notwithstanding any other provision of law, specified local school administrative units may offer one community college course to participating sophomore (tenth grade) students. Participating local school administrative units are Alleghany, Beaufort, Hertford, Jones, Madison, Richmond, Rutherford, Sampson, Surry, Wilkes, and Yancey County Schools.
SECTION 7.19.(b) Grant funds shall be used to pay for all costs incurred by the local school administrative units and the community college partners to implement the grant, including community college FTE. Community colleges shall not earn budget FTE for student course enrollments supported with this grant.
SECTION 7.19.(c) Research for the project shall address the effects of Early College strategies in preparing students for Career and College Promise. The North Carolina New Schools Project shall report on the implementation of the grant to the State Board of Education, State Board of Community Colleges, Office of the Governor, and the Joint Legislative Education Oversight Committee no later than March 15, 2013, and annually thereafter until the end of the grant period.
PART VIII. COMMUNITY COLLEGES
REPORT ON CURRENT AND FUTURE EFFORTS REGARDING DEVELOPMENTAL EDUCATION
SECTION 8.1.(a) The North Carolina Community College System shall report, no later than March 1, 2013, to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management on its developmental education offerings. This report shall include, but is not limited to, developmental math and science courses, Basic Skills Plus, and other remedial coursework.
SECTION 8.1.(b) This report shall include the following:
(1) Number of students enrolled in developmental education for the last four years (beginning with fiscal year 2008‑2009).
(2) The costs of developmental education, in total and by program.
(3) The types, number, and costs of diagnostic assessments taken by students prior to being placed in a developmental course.
(4) The impact of developmental education on a student's success in subsequent educational pursuits, including the time taken to earn an associate degree.
(5) Cooperative efforts with high schools and the Department of Public Instruction to identify or reduce a student's need for developmental education prior to earning a high school diploma.
(6) Recent changes and proposed reforms to developmental education in the North Carolina Community College System.
REPEAL OBSOLETE REPORTS
SECTION 8.2.(a) G.S. 116D‑3(c) is repealed.
SECTION 8.2.(b) Section 9.11(e) of S.L. 1999‑237 is repealed.
SECTION 8.2.(c) Section 5 of S.L. 2005‑198, as amended by Section 35 of S.L. 2007‑484, reads as rewritten:
"SECTION 5. This act is effective when it becomes
law. Section 1 of this act applies to provisional teaching certificates issued
on or after that date. Sections 2, 3, and 4 of this act expire July 1, 2011.Section
4 of this act expires July 1, 2011."
FINANCIAL AID PROGRAM ADMINISTRATIVE COSTS
SECTION 8.3. G.S. 115D‑40.1(c) reads as rewritten:
"(c) Administration of Program. The State Board shall adopt rules and policies for the disbursement of the financial assistance provided in subsections (a) and (b) of this section. Degree, diploma, and certificate students must complete a Free Application for Federal Student Aid (FAFSA) to be eligible for financial assistance. The State Board may contract with the State Education Assistance Authority for administration of these financial assistance funds. These funds shall not revert at the end of each fiscal year but shall remain available until expended for need‑based financial assistance. The interest earned on the funds provided in subsections (a) and (b) of this section may be used to support the costs of administering the Community College Grant Program. If these interest earnings are not adequate to support the administrative costs, up to one percent (1%) of funds provided in subsection (a) of this section may be used to support the costs of administering the Community College Grant Program."
PART IX. UNIVERSITIES
RESIDENT TUITION FOR MILITARY VETERANS AND THEIR DEPENDENTS
SECTION 9.1. G.S.116‑143.3 is amended by adding a new subsection to read:
"(c1) Military veterans honorably discharged on or after July 1, 2011, shall be considered in‑State residents for tuition purposes, provided they were last assigned to a permanent duty station in North Carolina. Any dependent relative of an eligible veteran shall also be considered a resident for tuition purposes. To continue being classified a North Carolina resident, a participating veteran or dependent relative must provide proof of establishing residency in North Carolina within 12 months of initial enrollment."
NORTH CAROLINA TEACHER INSTITUTE ON TEACHER TRAINING AND PROFESSIONAL DEVELOPMENT
SECTION 9.2.(a) The North Carolina Teacher Institute on Teacher Training and Professional Development Institute is created at the Friday Institute for Education Innovation at North Carolina State University. The purpose of the Institute is to establish a statewide network of online and in‑person, high‑quality, comprehensive professional development for teachers so they will have the knowledge and skills necessary to use 21st century tools and resources to teach 21st century content skills. This network shall ensure that teachers are integrally involved in the development and delivery of professional development.
SECTION 9.2.(b) The Institute shall be advised by the North Carolina Teacher Institute Advisory Council. The Governor shall appoint the members of the Council. The Council will be established as follows:
(1) The Council shall be composed of up to 25 members appointed by the Governor. Members shall be active classroom teachers serving in a North Carolina public school. Members should represent diverse demographic and geographic regions of the State, grade levels, and subject areas.
(2) The Governor's Teacher Advisor, or his or her designee, shall serve as the chair of the Council. The Council shall select a vice‑chair from its membership.
(3) The Council shall include the North Carolina Teacher of the Year as a voting member. The Teacher of the Year will serve as a liaison between the Council and the State Board of Education.
(4) The Executive Director of the Friday Institute and the Dean of the NC State University College of Education shall also serve as members of the Council.
(5) The Council also may include as voting members the president or designee of State affiliates to the following national teacher organizations: the North Carolina Association of Educators and the American Federation of TeachersNorth Carolina.
(6) The State Superintendent of Education, or his or her designee, will serve on the Council.
(7) Council members shall serve terms of two years and may be reappointed to successive terms. Council members serve at the pleasure of the Governor.
SECTION 9.2.(c) The Chief Administrative Officer of the Institute shall be appointed by the Executive Director of the Friday Institute in consultation with the North Carolina Teacher Institute Advisory Council and the Governor.
SECTION 9.2.(d) The Institute shall develop an implementation plan for blended (online and in‑person) professional development that includes, but is not limited to, the following:
(1) Ensures fiscal efficiency, local implementation, and sustainability at the local level, including:
a. Conduct needs assessments to ensure that professional development programs directly address local education agency (LEA), school, and teacher needs;
b. Build resources centrally, build human capacity throughout the State, and implement professional development locally and regionally;
c. Take full advantage of economies of scale, by effective and efficient centralization of services, while planning to support local, regional, and central capacity building for sustainability;
d. Consider the needs of different types of districts, ranging from large urban to small rural, as well as other types of multidistrict collaborations;
e. Develop models of professional development based on researched best practices that have shown to be effective, include resources to test new and emerging approaches, with evaluations of their effectiveness;
f. Leverage the expertise, resources, and connections to a multistate collaborative available through the eLearning for Educators Collaborative, the Southern Regional Education Board, and other networks; and
g. Leverage the expertise and resources of the multiple groups within North Carolina that already provide professional development in Science, Technology, Engineering, and Mathematics (STEM) areas.
(2) Utilizes the resources developed by the State investments made by the NC Teacher Academy, including:
a. Staff development programs and resources in continuous school improvement, mathematics and elementary science curriculum, differentiated instruction and learning, instructional technology, and literacy;
b. Cadres or networks of professionally staff development trainers located strategically across the State in the eight education regions; and
c. Academies for school‑level teams that provide customized professional development based on the instructional needs of the school.
(3) Develops Online Professional Development (OPD) resources, including:
a. Design in modular, modifiable forms, consistent with technical and design standards, so materials can be adapted for other purposes;
b. Coordinate with Colleges of Education (CEDs) so that the OPD resources are used there also, and that resources from the CEDs are adapted for professional development in the LEAs;
c. Use the pedagogy and the tools participants need to learn as part of the online experience;
d. Provide for use of mobile devices, tablets, and other technologies to provide increased access and flexibility for participants;
e. Consider different types of online interactions including cohort‑based facilitated workshops to engage educators in learning content and teaching strategies and on‑demand professional development accessible by individuals as needed to support day‑to‑day teaching and learning; and
f. Design online resources so they can be easily updated, revised, repurposed, and moved to different emerging technologies.
SECTION 9.2.(e) Reporting Requirements. The Friday Institute shall report on its plan to the State Board of Education, the Joint Legislative Education Oversight Committee, and the Office of the Governor by March 15, 2013.
CHANGE REPORT DATE ON PROGRESS OF NORTH CAROLINA GRADUATES ENTERING PRIMARY CARE CENTERS
SECTION 9.3. G.S. 143‑613(d) reads as rewritten:
"(d) The progress of the private and State‑operated
medical schools and State‑operated health professional schools towards
increasing the number and proportion of graduates entering primary care shall
be monitored annually by the Board of Governors of The University of North
Carolina. Monitoring data shall include (i) the entry of State‑supported
graduates into primary care residencies and clinical training programs, and
(ii) the specialty practices by a physician and each midlevel provider who were
State‑supported graduates as of a date five years after graduation. The
Board of Governors shall certify data on graduates, their residencies and
clinical training programs, and subsequent careers by October 1 November
15 of each calendar year, beginning in October of 1995, year to
the Fiscal Research Division of the Legislative Services Office Office,
to the Office of State Budget and Management, and to the Joint Legislative
Education Oversight Committee."
PERMANENT TRANSFER OF FUNDING FOR MILITARY ONE‑STOp & BRAC OUTREACH
SECTION 9.4. The Military One‑Stop & BRAC Outreach program is transferred from Fayetteville State University to the University of North Carolina General Administration 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 two hundred fifty‑one thousand five hundred dollars ($251,500).
CENTER FOR DESIGN INNOVATION DIGITAL TECHNOLOGIES PILOT
SECTION 9.5.(a) The Center for Design Innovation shall use funds appropriated in this act to establish a pilot program in digital technologies, in cooperation with the UNC School of the Arts, Winston‑Salem State University, Forsyth Technical Community College, and high schools located in Forsyth County. Once this course of study has been developed, it shall be submitted for consideration as a career pathway in Career and College Promise.
SECTION 9.5.(b) The University of North Carolina shall report on this pilot no later than March 1, 2017, to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management. This report shall include:
(1) The number of students enrolled in the program, by year admitted.
(2) The completion rate of enrolled students.
(3) The placement of graduating students in industries and companies that utilize technologies taught in this program.
(4) The satisfaction of employers with the performance of graduates of this program.
THE UNIVERSITY OF NORTH CAROLINA PERFORMANCE ACCOUNTABILITY FUNDING
SECTION 9.6.(a) The University of North Carolina Board of Governors shall design and implement a Performance Accountability Funding program. For the purpose of distributing funds, the Board shall consider statistically valid measures of retention, graduation, efficiency, and financial data and shall set performance targets for each UNC institution. Performance funding criteria shall be adopted prior to the release of funds appropriated in this act.
SECTION 9.6.(b) The University shall report annually, beginning January 1, 2013, to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management on its Performance Accountability Funding program. This report shall include the following:
(1) A description of the performance measures used for funding allocation.
(2) The performance measure target for each institution.
(3) Data on each measure for each UNC institution.
(4) The amount of performance funding awarded to each UNC institution.
(5) Historical performance data and funding amounts for the previous three years, as available.
(6) The use of funds allocated for performance accountability.
SECTION 9.6.(c) The UNC Board of Governors and each institution shall prominently display their performance targets and level of attainment on their public Web sites and in all future funding requests made to the General Assembly and the Governor.
ESTABLISH UNC Research Commercialization Fund
SECTION 9.7.(a) There shall be appropriated two million dollars ($2,000,000) to The University of North Carolina General Administration to establish a UNC Research Commercialization Fund. Monies in the Fund shall be awarded on a competitive basis and used to support activities that accelerate the development and launch of commercial products derived from university research. Specific activities that may be funded include:
(1) Investing in market assessment services to more accurately determine whether a product will be successful.
(2) Supporting proof of concept activities, including the development of prototypes.
(3) Covering relevant operational costs, including patent fees or faculty release time.
(4) Enhancing work currently being done with the Blackstone Entrepreneurs Network.
SECTION 9.7.(b) The University of North Carolina General Administration shall monitor and report the technology transfer activities resulting from investments made from the UNC Research Commercialization Fund. This report shall be made annually by December 1 of each year to the Joint Legislative Education Oversight Committee and to the Office of State Budget and Management and shall discuss expenditures from the Fund. Components of the report shall include:
(1) A detailed accounting of the expenditure of funds and specific services provided.
(2) Measures of impact to the State's economy in the creation of jobs, intellectual property, infrastructure investment, and start‑up companies.
(3) The specific research and development projects funded at UNC.
(4) Other measures directly related to enhancing North Carolina's economy.
SECTION 9.7.(c) In addition to the report required in subsection (b) of this section, The University of North Carolina General Administration shall submit, by December 1, 2012, a comprehensive report of all technology transfer activities across the UNC System, including such activities as spin‑off companies created, patents received for research inventions and innovations, products developed, and other agreements to share research between The University of North Carolina and its partners.
LOWER COST OF INDEBTEDNESS ON CAPITAL PROJECTS
SECTION 9.8. Article 3 of Chapter 116D of the General Statutes is amended to add a new section to read:
"§ 116D‑32. Timely payment of special obligation bonds.
(a) This section applies to the special obligation bonds issued by the Board where (i) in the bond resolution or trust agreement authorizing or securing such bonds and at the time of issuance of the bonds, the Board has expressly and irrevocably elected to have the provisions of this section apply and (ii) the debt service schedule for such bonds has been received by the Director of the Budget. This section does not apply to bonds for which no such election is made or any other obligations of the Board or the institutions.
(b) Whenever the paying agent for the bonds has not received payment of principal of or interest on bonds to which this section applies on the business day immediately before the date on which such payment is due, the paying agent shall notify the Director of the Budget and the Board, by telephone, facsimile, or other similar communication, followed by written verification, of such payment status. The Director of the Budget shall immediately contact the Board and determine whether the Board will make the payment by the date on which it is due.
(c) If the Board indicates that the institution will not make the payment by the date on which it was due, the Director of the Budget shall forward the amount in immediately available funds necessary to make the payment of principal of or interest on the bonds to the paying agent and shall withhold such amount, in the following order of priority, from:
(1) The next succeeding appropriations payment designated for the continuing operation of the institution or institutions for whose benefit the Board issued the bonds pursuant to an appropriation under G.S. 116‑11(9)b., which appropriation was based upon a budget recommendation described in G.S. 116‑11(9)a.(i);
(2) The next succeeding appropriations payment allocated by the Board to the institution or institutions for whose benefit the Board issued the bonds pursuant to an appropriation to the Board under G.S. 116‑11(9)b., which appropriation was based upon a budget recommendation described in G.S. 116‑11(9)a.(ii); and
(3) The next succeeding appropriations payment of any other amounts appropriated to the Board and payable to or otherwise designated for the continuing operation of all institutions equally.
If the amount of all such next succeeding appropriations payments in subdivisions (1) through (3) of this subsection is insufficient to pay the amount necessary, the Director of the Budget shall withhold amounts from each succeeding appropriations payments in the order set forth in this subsection, including payments to be made in succeeding fiscal years, but not to include more than 12 months of payments, until the total payment of principal and interest has been withheld.
(d) The amounts forwarded to the paying agent by the Director of the Budget shall be applied by the paying agent solely to the payment of the principal of and interest on the bonds of the Board for which the amounts were forwarded. The Director of the Budget shall notify the Board and the chief financial officer or officers of the institution or institutions whose appropriations have been withheld and payments made pursuant to this section.
(e) The Board shall, for bonds to which this section applies, file with the Director of the Budget a notice that sets forth the name and amount of the bonds, the institution for whose benefit the Board issued the bonds, the scheduled debt service for the bonds, and the name, address, and telephone number of the paying agent for the bonds. The Board shall provide to the Director of the Budget such additional information and documentation as the Director of the Budget may request from time to time regarding such bonds. The failure of the Board to file such notice and information shall not affect the obligation of the Director of the Budget to pay the appropriation payments as set forth in subsection (c) of this section.
(f) The State hereby covenants with the purchasers and beneficial owners of bonds issued by the Board that it will not repeal, revoke, or rescind the provisions of this section or modify or amend the same so as to limit or impair the rights and remedies granted by this section for so long as the bonds covered by this section are outstanding; but nothing in this subsection shall be deemed or construed to require the State to continue the payment of State appropriations to the Board or any institution or to limit or prohibit the State from repealing, amending, or modifying any law relating to the amount of State appropriations to the Board or any institution or the manner of payment or timing thereof. Nothing in this section shall be deemed or construed to create a debt of the State with respect to such bonds within the meaning of any State constitutional provision or to create any liability except to the extent provided in this section.
(g) Whenever the Director of the Budget is required by this section to make a payment of principal of or interest on bonds on behalf of the Board, the Director of the Budget, or the Director's designee, shall initiate a review of the institution or institutions for whose benefit such bonds were issued to determine the reason for the nonpayment and to assist the Board and such institution or institutions, if necessary, in developing and implementing measures to assure that future payments will be made when due.
(h) To the extent permitted by the bond resolution or trust agreement to which this section applies, whenever the Director of the Budget is required by this section to make a payment of principal of or interest on bonds on behalf of the Board from appropriations to the Board and the institution or institutions and the debt service deficiency resulted because of a failure to collect revenues, the Board may, upon collection of the delinquent revenues, transfer such delinquent revenues later out of the revenue fund created under the bond resolution or trust agreement to the constituent institution."
REPEAL OBSOLETE REPORTS
SECTION 9.9.(a) G.S. 116‑11(10a) is repealed.
SECTION 9.9.(b) G.S. 116‑11(12a) is repealed.
SECTION 9.9.(c) Chapter 346 of the 1991 Session Laws is repealed.
SECTION 9.9.(d) G.S. 116D‑3(a)(1) is repealed.
SECTION 9.9.(e) Section 13 of S.L. 2001‑496 is repealed.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
ADMINISTRATIVE ALLOWANCE FOR COUNTY DEPARTMENTS OF SOCIAL SERVICES
SECTION 10.1. Section 10.6 of S.L. 2011‑145 reads as rewritten:
"SECTION 10.6 The Division of Child Development
and Early Education of the Department of Health and Human Services shall fund
the allowance that county departments of social services may use for
administrative costs at four percent (4 %) three percent (3%) of
the county's total child care subsidy funds allocated in the Child Care
Development Fund Block Grant plan."
NC PREKINDERGARTEN PROGRAM
SECTION 10.2.(a) The Division of Child Development and Early Education (DCDEE) shall continue the implementation of the State 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 DCDEE. All such classrooms shall be subject to the supervision and standards of DCDEE.
SECTION 10.2.(b) The DCDEE 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 10.2.(c) The Division of Child Development and Early 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 Oversight Committee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, 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 10.2.(d) The Division of Child Development and Early Education shall establish income eligibility requirements for the program not to exceed seventy‑five percent (75%) of the State median income, with priority being given to this at‑risk eligible population. In addition, children with other identified risk factors may be served without regard to income. 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 without regard to income.
SECTION 10.2.(e) The prekindergarten 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 prekindergarten program funding shall be permitted when current funding is eliminated, reduced, or redirected as required to meet other specified federal or State mandates.
SECTION 10.2.(f) The Division of Child Development and Early Education shall contract with an independent research organization not affiliated with the Department of Health and Human Services, the Department of Public Instruction, or the Office of the Governor to produce an annual report to include longitudinal review of the prekindergarten program and academic, behavioral, and other child‑specific outcomes. The review shall include a quasi‑experimental research design of a representative sample of children who complete the prekindergarten program every other year and shall report on their sustained progress until the end of grade six. The review shall also study a representative sample of children who do not enter the prekindergarten program but who are of the same grade level and demographic as those who complete the program, and their sustained progress shall also be reviewed until the end of grade six. The review shall be presented to the Joint Legislative Oversight Committee on Health and Human Services by January 31 of every year.
SECTION 10.2.(g) Pursuant to Session Law 2011‑145, public school classrooms had a one‑year transition period to become licensed through DCDEE and continued to operate NC Pre‑K classrooms for the 2011‑2012 school year. If meeting licensure standards for a public school constitutes a significant barrier to access to the State prekindergarten program for at‑risk students, the public school may request a waiver of the licensure requirement from DCDEE.
SECTION 10.2.(h) Section 10.7.(e) of Session Law 2011‑145 is repealed.
SECTION 10.2.(i) Section 10.7.(f) of Session Law 2011‑145 is repealed.
SECTION 10.2.(j) Section 10.7.(h) of Session Law 2011‑145 is repealed.
AIDS DRUG ASSISTANCE PROGRAM PILOT
SECTION 10.3. The Department of Health and Human Services shall establish a pilot with Inclusive Health, the State and federal Pre‑existing Conditions Insurance Program (PCIP) contract holder in North Carolina, to: (i) determine cost savings to the AIDS Drug Assistance Program (ADAP) through the enrollment of ADAP clients in a PCIP; and (ii) inform the Department of best practices to guide its efforts when transitioning clients to Medicaid as they become eligible.
The Department shall establish policy for the pilot. The pilot may include up to three HIV/AIDS care provider agencies serving the highest number of ADAP enrolled clients, and the pilot shall not exceed ten percent (10%) of the total ADAP enrolled clients. The pilot is effective January 1, 2013, through December 31, 2013. The Department shall obtain actuarial services to ensure the cost neutrality of enrolling ADAP clients prior to the pilot start date. The Department shall only enroll clients to the point where the pilot will be cost‑neutral or cost savings will be achieved. If cost neutrality or savings are not projected, the pilot shall not commence. No additional State funding is appropriated to support the pilot project and in implementing it, the Division of Public Health must manage the pilot population along with the ADAP clients to ensure program expenditures do not exceed appropriated funding.
The Department may contract with an outside vendor to evaluate the pilot, and report no later than April 1, 2014, to the Joint Legislative Oversight Committee on Health and Human Services on the results of the pilot. The report shall include:
(1) Number of ADAP enrolled clients participating in the pilot;
(2) Cost analysis for the pilot program (cost of clients receiving PCIP services compared to cost of these clients continuing to receive ADAP only services);
(3) Feedback from pilot participants;
(4) Best practices identified; and
(5) Improved health outcomes.
medicaid
Section 10.4.(a) Section 10.31(d)(1)l. of S.L. 2011‑145 reads as rewritten:
"l. 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.
l. Medicare crossover claims. The Division of Medical Assistance shall apply Medicaid medical policy to recipients who have primary insurance or Medicare and Medicare Advantage plans for dually eligible recipients.
1. For payment of Medicare crossover claims, the Division of Medical Assistance shall pay the Medicaid DRG payment less the amount paid by Medicare but not to exceed the sum of the Medicare cost‑share.
2. For payment of private insurance claims, the Division shall pay Medicaid payment less the amount paid by primary payer not to exceed the sum of the cost‑share.
3. Cost‑share is defined as coinsurance, deductible, and co‑pay.
4. Medicaid's payment shall be the lesser of Medicaid net allowable or the sum of the cost‑share as defined in subdivision (3) of this subsection..
5. Medicaid net allowable is calculated by reducing the Medicaid allowed minus primary insurance cash payment minus patient medical liability.
Section 10.4.(b) Section 10.31(d)(1)n. of Session Law 2011‑145 reads as rewritten:
"n. Mental health services. Coverage is limited to children eligible for EPSDT services provided by:
1. Licensed or certified psychologists, licensed clinical social workers, licensed clinical social workers associates, 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 professional counselor associates, licensed marriage and family therapists, licensed marriage and family therapy associates, licensed clinical addictions specialists, licensed clinical addictions specialist associates, 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."
SECTION 10.4.(c) Section 10.31(d)(2) of S.L. 2011‑145 is amended by adding a new sub‑subdivision to read:
"x. Mobile health screenings and assessments. In order to receive reimbursement by the NC Medical Assistance program, mobile providers of health screenings and assessments must:
1. Refer patients to an established provider of comprehensive care when follow‑up care is required;
2. Be linked to a Medicaid‑enrolled primary care, dental, or other provider with a permanent and fixed location;
3. Have electronic technology that enables the exchange of patient records with the provider of referral within 24 hours; and
4. Have a service area that is limited to 100 miles in a rural setting and 50 miles in an urban setting from the primary provider to which they are linked."
mEDICAID Provider Assessments
SECTION 10.4A.(a) The Secretary of Health and Human Services may implement a Medicaid assessment program for any willing provider category allowed under federal regulations, except for hospital providers subject to the assessments authorized in S.L. 2011‑11, up to the maximum percentage allowed by federal regulation. The Department may retain up to sixty‑five percent (65%) of the amount from an assessment program implemented after December 31, 2010, that can be used by the Department to support Medicaid expenditures. Any assessment funds not retained by the Department shall be used to draw federal Medicaid matching funds for implementing increased rates or new reimbursement plans for each provider category being assessed.
Receipts from the assessment program are hereby appropriated for the 2011‑2012 fiscal year and the 2012‑2013 fiscal year for the purposes set out in this section.
SECTION 10.4A.(b) G.S.108A‑124 reads as rewritten:
"§ 108A‑124. Use of assessment proceeds.
(a) Use. The proceeds of the assessments imposed under this Article and all corresponding matching federal funds must be used to make the State annual Medicaid payment to the State and the Medicaid equity payments and UPL payments to hospitals.
(b) Quarterly Payments. Within seven business days
of following the due date for each quarterly assessment imposed
under G.S. 108A‑123, the Secretary must do the following:
(1) Transfer to the State Controller twenty‑five
percent (25%) of the State's annual Medicaid payment amount.
(2) Pay to each hospital that has paid its equity assessment for the respective quarter twenty‑five percent (25%) of its Medicaid equity payment amount. A hospital's Medicaid equity payment amount is the sum of the hospital's Medicaid inpatient and outpatient deficits after calculating all other Medicaid payments, excluding disproportionate share hospital payments and the UPL payment remitted to the hospital under subdivision (3) of this subsection.
(3) Pay to the primary affiliated teaching hospital for the East Carolina University Brody School of Medicine, to the critical access hospitals, and to each hospital that has paid its UPL assessment for the respective quarter twenty‑five percent (25%) of its UPL payment amount, as determined under subsection (c) of this section.
(c) UPL Payment Amount. The aggregate UPL payments made to eligible hospitals that are public hospitals is the sum of the UPL gaps for all public hospitals. The aggregate UPL payments made to eligible hospitals that are not public hospitals is the sum of the UPL gaps for these hospitals. UPL payments are payable to the individual hospitals in the ratio of each hospital's Medicaid inpatient costs to the total Medicaid inpatient costs for the respective group.
(d) Refund of Assessment. If all or any part of a payment required to be made under this section is not made to one or more hospitals when due, the Secretary must promptly refund to each such hospital the corresponding assessment proceeds collected in proportion to the amount of assessment paid by that hospital."
Authorize the Division of Medical Assistance to take certain steps to effectuate compliance with budget reductions in the Medicaid program
SECTION 10.5. Section 10.37(a) of S.L. 2011‑145 reads as rewritten:
"SECTION 10.37.(a) The Department of Health and Human Services, Division of Medical Assistance, may take the following actions, notwithstanding any other provision of this act or other State law or rule to the contrary:
(1) In‑Home Care provision. In order to enhance in‑home aide services to Medicaid recipients, the Department of Health and Human Services, Division of Medical Assistance, shall:
a. No longer provide services under PCS and PCS‑Plus the later of January 1, 2012, or whenever CMS approves the elimination of the PCS and PCS‑Plus programs and the implementation of the following two new services:
1. In‑Home Care for Children (IHCC). Services to assist families to meet the in‑home care needs of children, including those 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. In‑Home Care for Adults (IHCA). Services to meet the eating, dressing, bathing, toileting, and mobility needs of individuals 21 years of age or older who, because of a medical condition, disability, or cognitive impairment, demonstrate unmet needs for, at a minimum, (i) three of the five qualifying activities of daily living (ADLs) with limited hands‑on assistance; (ii) two ADLs, one of which requires extensive assistance; or (iii) two ADLs, one of which requires assistance at the full dependence level. The five qualifying ADLs are eating, dressing, bathing, toileting, and mobility. IHCA shall serve individuals at the highest level of need for in‑home care who are able to remain safely in the home.
b. Establish, in accordance with G.S. 108A‑54.2, a Medical Coverage Policy for each of these programs, to include:
1. For IHCC, up to 60 hours per month in accordance with an assessment conducted by DMA or its designee and a plan of care developed by the service provider and approved by DMA or its designee. Additional hours may be authorized when the services are required to correct or ameliorate defects and physical and mental illnesses and conditions in this age group, as defined in 42 U.S.C. § 1396d(r)(5), in accordance with a plan of care approved by DMA or its designee.
2. For IHCA, up to 80 hours per month in accordance with an assessment conducted by DMA or its designee and a plan of care developed by the service provider and approved by DMA or its designee.
c. Implement the following program limitations and restrictions to apply to both IHCC and IHCA:
1. Additional services to children required under federal EPSDT requirements shall be provided to qualified recipients in the IHCC Program.
2. Services shall be provided in a manner that supplements, rather than supplants, family roles and responsibilities.
3. Services shall be authorized in amounts based on assessed need of each recipient, taking into account care and services provided by the family, other public and private agencies, and other informal caregivers who may be available to assist the family. All available resources shall be utilized fully, and services provided by such agencies and individuals shall be disclosed to the DMA assessor.
4. Services shall be directly related to the hands‑on assistance and related tasks to complete each qualifying ADL in accordance with the IHCC or IHCA assessment and plan of care, as applicable.
5. Services provided under IHCC and IHCA shall not include household chores not directly related to the qualifying ADLs, nonmedical transportation, financial management, and non‑hands‑on assistance such as cueing, prompting, guiding, coaching, or babysitting.
6. Essential errands that are critical to maintaining the health and welfare of the recipient may be approved on a case‑by‑case basis by the DMA assessor when there is no family member, other individual, program, or service available to meet this need. Approval, including the amount of time required to perform this task, shall be documented on the recipient's assessment form and plan of care.
d. Utilize the following process for admission to the IHCC and IHCA programs:
1. The recipient shall be seen by his or her primary or attending physician, who shall provide written authorization for referral for the service and written attestation to the medical necessity for the service.
2. All assessments for admission to IHCC and IHCA, continuation of these services, and change of status reviews for these services shall be performed by DMA or its designee. The DMA designee may not be an owner of a provider business or provider of in‑home or personal care services of any type.
3. DMA or its designee shall determine and authorize the amount of service to be provided on a "needs basis," as determined by its review and findings of each recipient's degree of functional disability and level of unmet needs for hands‑on personal assistance in the five qualifying ADLs.
e. Take all appropriate actions to manage the cost, quality, program compliance, and utilization of services provided under the IHCC and IHCA programs, including, but not limited to:
1. Priority independent reassessment of recipients before the anniversary date of their initial admission or reassessment for those recipients likely to qualify for the restructured IHCC and IHCA programs.
2. Priority independent reassessment of recipients requesting a change of service provider.
3. Targeted reassessments of recipients prior to their anniversary dates when the current provider assessment indicates they may not qualify for the program or for the amount of services they are currently receiving.
4. Targeted reassessment of recipients receiving services from providers with a history of program noncompliance.
5. Provider desk and on‑site reviews and recoupment of all identified overpayments or improper payments.
6. Recipient reviews, interviews, and surveys.
7. The use of mandated electronic transmission of referral forms, plans of care, and reporting forms.
8. The use of mandated electronic transmission of uniform reporting forms for recipient complaints and critical incidents.
9. The use of automated systems to monitor, evaluate, and profile provider performance against established performance indicators.
10. Establishment of rules that implement the requirements of 42 C.F.R. § 441.16.
f. Time line for implementation of new IHCC and IHCA programs.
1. Subject to approvals from CMS, DMA shall
make every effort to implement the new IHCC and IHCA programs by January 1,
2013.
2.1. DMA shall ensure that individuals who
qualify for the IHCC and IHCA programs shall not experience a lapse in service
and, if necessary, shall be admitted on the basis of their current provider
assessment when an independent reassessment has not yet been performed and the
current assessment documents that the medical necessity requirements for the
IHCC or IHCA program, as applicable, have been met.
3.2. Prior to the implementation date of
the new IHCC and IHCA programs, all recipients in the PCS and PCS‑Plus
programs shall be notified pursuant to 42 C.F.R. § 431.220(b) and discharged,
and the Department shall no longer provide services under the PCS and PCS‑Plus
programs, which shall terminate. Recipients who qualify for the new IHCC and
IHCA programs shall be admitted and shall be eligible to receive services
immediately.
3. The program will sunset on December 31, 2012.
(2) Clinical coverage. The Department of
Health and Human Services, Division of Medical Assistance, shall amend
applicable clinical policies and submit applicable State Plan amendments to
Centers for Medicare and Medicaid Services (CMS) to implement the budget
reductions authorized in the following clinical coverage areas in this act:
a. Eliminate or limit adult physical
therapy, occupational therapy, and speech therapy visits to three visits per
calendar year.
(3) MH/DD/SAS personal care and personal assistance
services provision. A denial, reduction, or termination of Medicaid‑funded
personal care assistance services or in‑home care
services shall result in a similar denial, reduction, or termination of
State‑funded MH/DD/SAS personal care and personal assistance services.
(4) Community Support Team. Authorization for a Community Support Team shall be based upon medical necessity as defined by the Department and shall not exceed 18 hours per week.
(5) MH residential. The Department of Health and Human Services shall restructure the Medicaid child mental health, developmental disabilities, and substance abuse residential services to ensure that total expenditures are within budgeted levels. All restructuring activities shall be in compliance with federal and State law or rule. The Divisions of Medical Assistance and Mental Health, Developmental Disabilities, and Substance Abuse Services shall establish a team inclusive of providers, LMEs, and other stakeholders to assure effective transition of recipients to appropriate treatment options. The restructuring shall address all of the following:
a. Submission of the therapeutic family service definition to CMS.
b. The Department shall reexamine the entrance and continued stay criteria for all residential services. The revised criteria shall promote least restrictive services in the home prior to residential placement. During treatment, there must be inclusion in community activities and parent or legal guardian participation in treatment.
c. Require all existing residential providers or agencies to be nationally accredited within one year of enactment of this act. Any providers enrolled after the enactment of this act shall be subject to existing endorsement and nationally accrediting requirements. In the interim, providers who are nationally accredited will be preferred providers for placement considerations.
d. Before a child can be admitted to Level III or Level IV placement, an assessment shall be completed to ensure the appropriateness of placement, and one or more of the following shall apply:
1. Placement shall be a step down from a higher level placement such as a psychiatric residential treatment facility or inpatient facility.
2. Multisystemic therapy or intensive in‑home therapy services have been unsuccessful.
3. The Child and Family Team has reviewed all other alternatives and recommendations and recommends Level III or Level IV placement due to maintaining health and safety.
4. Transition or discharge plan shall be submitted as part of the initial or concurrent request.
e. Length of stay is limited to no more than 180 days. Any exceptions granted will require (i) for non‑CABHAs, an independent psychological or psychiatric assessment, (ii) for CABHAs, a psychological or psychiatric assessment that may be completed by the CABHA, and (iii) for both, a Child and Family Team review of goals and treatment progress, that family or discharge placement setting are actively engaged in treatment goals and objectives, and active participation of the prior authorization of vendor.
f. Submission of discharge plan is required in order for the request for authorization for Level III or Level IV services to be considered complete, but the authorization approval is not conditional upon the receipt of the signature of the system of care coordinator. The LME will designate appropriate individuals who can sign the discharge plan within 24 hours of receipt of the discharge plan. Failure to submit a complete discharge plan will result in the request being returned as unable to process.
g. Any residential provider that ceases to function as a provider shall provide written notification to DMA, the Local Management Entity, recipients, and the prior authorization vendor 30 days prior to closing of the business.
h. Record maintenance is the responsibility of the provider and must be in compliance with record retention requirements. Records shall also be available to State, federal, and local agencies.
i. Failure to comply with notification, recipient transition planning, or record maintenance shall be grounds for withholding payment until such activity is concluded. In addition, failure to comply shall be conditions that prevent enrollment for any Medicaid or State‑funded service. A provider (including its officers, directors, agents, or managing employees or individuals or entities having a direct or indirect ownership interest or control interest of five percent (5%) or more as set forth in Title XI of the Social Security Act) that fails to comply with the required record retention may be subject to sanctions, including exclusion from further participation in the Medicaid program, as set forth in Title XI.
(6) Reduce Medicaid rates. Subject to the prior approval of the Office of State Budget and Management, the Secretary shall reduce Medicaid provider rates to accomplish the reduction in funds for this purpose enacted in this act. The reductions authorized by this subdivision are subject to the following additional limitations:
a. The Secretary of Health and Human Services shall
reduce Medicaid provider rates for all Medicaid providers by an annualized two and
sixty‑seven hundredths percent (2%)(2.67%) except as
follows:
1. Physician services. The provider rate for physicians shall not be reduced.
2. Hospital inpatient services. The provider rate for inpatient hospital services shall be reduced in the aggregate by an annualized amount not to exceed seven and thirty‑two hundredths percent (7.32%). The provider rates for non‑State‑owned freestanding psychiatric and rehabilitation hospitals are not included in this exception.
3. The Secretary shall consider the impact on access to care through primary care providers and critical access hospitals and may adjust the rates accordingly. Medicaid rates predicated on Medicare fee schedules shall follow Medicare reductions but not Medicare increases unless federally required.
4. Exceptions for certain providers. The rate reduction applies to all Medicaid private and public providers with the following exceptions:
I. Federally qualified health centers.
II. Rural health centers.
III. State institutions.
IV. Hospital outpatient.
V. Pharmacies.
VI. The State Public Health Laboratory.
VII. The noninflationary components of the case‑mix reimbursement system for nursing facilities.
VIII. Adult care homes.
IX. Local health departments.
X. Critical Access Behavioral Health Agencies.
5. Notwithstanding any other provision of law, no inflationary increases shall be made to Medicaid provider rates during the 2011‑2013 fiscal biennium, except that inflationary increases for health care providers paying provider fees or assessments may occur if the State share of the increases can be funded with provider fees or assessments.
b. The rate reductions required by this section shall take effect in accordance with the following schedule:
1. On or Before October 1, 2011. The provider rate reductions required by sub‑subdivision a. of this subdivision shall take effect on or before October 1, 2011. However, the reductions shall be adjusted by a percentage sufficient to yield savings as if the reductions had taken effect on July 1, 2011.
2. July 1, 2012. On July 1, 2012, the
provider rate reductions required by sub‑sub‑subdivision a.2. of
this subdivision and any other rate reductions implemented pursuant to sub‑subdivision
a. of this subdivision, but not implemented by July 1, 2011, shall be adjusted
to the level at which they would have been without the adjustment required by
sub‑sub‑subdivision 1. of this sub‑subdivision.
c. No other adjustments to the provider rates or payment methodologies shall be made for physician services, critical access hospital services, hospital inpatient services or hospital outpatient services, non‑State‑owned freestanding psychiatric and rehabilitation hospitals, nursing homes, and adult care homes except as provided in sub‑subdivision a. of this subdivision and except as authorized by Section 10.47(d) of this act.
(7) Medicaid identification cards. The Department shall issue Medicaid identification cards to recipients on an annual basis with updates as needed.
(8) The Department of Health and Human Services shall develop a plan for the consolidation of case management services utilizing CCNC. The plan shall address the time line and process for implementation, the identification of savings, and the Medicaid recipients affected by the consolidation. Consolidation under this subdivision does not apply to HIV case management. By December 1, 2012, the Department shall report on the plan 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.
(9) For the purpose of promoting cost‑effective utilization of outpatient mental health services for children, DMA shall require prior authorization for services following the 16th visit.
(10) Provision of Medicaid Private Duty Nursing (PDN). DMA shall change the Medicaid Private Duty Nursing program provided under the State Medicaid Plan, as follows:
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 CMS 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.
(11) Medicaid service modifications and eliminations. Subject to the prior approval of the Centers for Medicare and Medicaid Services where required, the Division of Medical Assistance shall make the following eliminations of or modifications to Medicaid services:
a. Optical.
1. Eliminate adult routine eye exams. Eye exams shall be restricted to cases in which a specific optical problem exists.
2. Eliminate optical services and supplies.
b. Durable medical equipment. The Department may adjust the rate paid for incontinence supplies or reduce cost through a negotiated single source contract with a manufacturer for incontinence supply procurement, notwithstanding any other provision of law. The contract shall provide that suppliers may use the contract but are also free to take advantage of better prices available elsewhere. The Department may effectuate any combination of these options in order to achieve the lowest available cost for incontinence supply procurement.
c. Specialized therapies. For adult evaluations
and reevaluations, as well as adult physical, occupational, speech, respiratory,
and audiological treatment services, reduce the maximum number of
allowable services by one per year. the Division shall implement a
tiered approach based on medical diagnosis.
d. Home health. Restrict usage of the miscellaneous T199 code. All billing must be for a specific service.
e. Pregnancy Home Model Initiative.
f. Dental.
1. Eliminate Reduce reimbursement rates paid
for composite fillings for back teeth fillings.and increase rates
paid for amalgam fillings for back teeth.
2. Limit the number of surfaces that can be filled
to four per tooth.Limit the total reimbursement for multiple separate
fillings placed on a single permanent back tooth to the fee paid for one
filling of four or more surfaces and on a single primary back tooth to the fee
paid for one filling of three surfaces.
3. Limit the allowed frequency of scaling and replaning
root planing to once every two years.
4. Raise Change the threshold for
eligibility prior approval criteria for eligibility for replaning
scaling and root planing to 5mm from 4mm4mm in
periodontal pocket depth to 5mm.
5. Eliminate cast dentures coverage for
of cast partial dentures only and replace retain
coverage of with acrylic partial dentures. Change the
frequency of replacement of partial dentures from every 10 years to
every eight years.
6. Require prior authorization for oral
excision of gum tissue.
g. Miscellaneous.
1. Restrict usage of evaluation and management billing as well as of unlisted codes and strengthen supporting documentation requirements. Billing shall use specific service codes for specific services as a prerequisite to reimbursement.
2. Restrict circumcision coverage to medically necessary procedures.
3. Utilize Bloodhound, Inc., software, or comparable software, to examine billing codes that are duplicative or inconsistent with evidence‑based practices.
4. Require prior authorization for back surgery for selective diagnoses and require that all other therapies have been exhausted prior to granting authorization.
5. Require prior authorization for capsule endoscopy but not traditional endoscopy.
6. Require prior authorization for selected medical procedures and services, including elective cardiac procedures, chronic pain management, and related procedures.
7. Negotiate a single source contract for genetic testing, notwithstanding any other provision of law."
NC Health Choice co‑pays
SECTION 10.6. G.S. 108A‑70.21(d) reads as rewritten:
"(d) (See note) Cost‑Sharing. There
shall be no deductibles, copayments, or other cost‑sharing charges for
families covered under the Program whose family income is at or below one
hundred fifty percent (150%) of the federal poverty level, except that fees for
outpatient prescription drugs are applicable and shall be one dollar ($1.00)
two dollars ($2.00) for each outpatient generic prescription drug,
for each outpatient brand‑name prescription drug for which there is no
generic substitution available, and one dollar ($1.00) for each covered
over‑the‑counter medication. The fee for each outpatient brand‑name
prescription drug for which there is a generic substitution available is three
dollars ($3.00). five dollars ($5.00). Families covered under the
Program whose family income is above one hundred fifty percent (150%) of the
federal poverty level shall be responsible for copayments to providers as
follows:
(1) Five dollars ($5.00) per child for each visit to a provider, except that there shall be no copayment required for well‑baby, well‑child, or age‑appropriate immunization services;
(2) Five dollars ($5.00) per child for each outpatient hospital visit;
(3) A one dollar ($1.00) two‑dollar
($2.00) fee for each outpatient generic prescription drug, for each
outpatient brand‑name prescription drug for which there is no generic
substitution available, and one dollar ($1.00) for each covered over‑the‑counter
medication. The fee for each outpatient brand‑name prescription drug for
which there is a generic substitution available is ten dollars ($10.00).
(4) Twenty dollars ($20.00) for each emergency room visit unless:
a. The child is admitted to the hospital, or
b. No other reasonable care was available as determined by the Department.
Copayments required under this subsection for prescription drugs apply only to prescription drugs prescribed on an outpatient basis."
SECTION 10.7. Section 10.38 of S.L. 2011‑145 reads as rewritten:
"MEDICAID
WAIVER FOR ASSISTED LIVINGPERSONAL
ASSISTANCE SERVICES
"SECTION 10.38.(a) To achieve comparability
of services across settings, the The Department of Health and Human
Services, Division of Medical Assistance (Division), shall develop develop,
seek CMS approval, and implement a home‑ and community‑based
services program under Medicaid State Plan 1915(i) authority in order to
continue Medicaid funding of personal care assistance services. services
to individuals living in adult care homes. Providers who do not accept
reimbursement for residents' personal care assistance services
through Medicaid or do not accept reimbursement through the State‑County
Special Assistance program shall not be subject to the provisions,
requirements, or conditions of the Medicaid waiver pursuant to
this section.
"SECTION 10.38.(b) The Division shall implement
the program upon approval of the application by the Centers for Medicare and
Medicaid Services.Services, with an implementation date of January
1, 2013.
"SECTION 10.38.(c) On or before April
1, 2012, the Division shall provide a report on the status of approval and
implementation of the program to the Joint Legislative Commission on
Governmental Operations, the Senate Appropriations Committee on Health and
Human Services, the House of Representatives Appropriations Subcommittee on
Health and Human Services, and the Fiscal Research Division.
"SECTION 10.38.(d) Notwithstanding any other provision of this act or other State law or rule to the contrary:
(1) Personal assistance services (PAS) shall be defined as assistance with activities of daily living (ADLs) and instrumental activities of daily living (IADLs).
a. ADLs are defined as bathing, dressing, mobility, toileting, and eating.
b. IADLs are defined as meal preparation and medication management. Home management IADLs may be provided that directly relate to the individual's qualifying ADLs.
c. Essential errands that are critical to maintaining the health and welfare of the recipient may be approved on a case‑by‑case basis through independent assessment when there is no family member, other individual, program, or service available to meet this need. Approval, including the amount of time required to perform this task, shall be documented on the recipient's assessment form and plan of care.
d. Services shall be provided in a manner that supplements rather than supplants family roles and responsibilities.
e. Services shall be authorized in amounts based on assessed need of each recipient, taking into account care and services provided by the family, other public and private agencies, and other informal caregivers who may be available to assist the family. All available resources shall be utilized fully, and services provided by such agencies and individuals shall be disclosed to the DMA independent assessor.
f. Services shall be directly related to the assistance and related tasks to complete each qualifying ADL and IADL in accordance with the independent assessment and plan of care.
g. Services shall not include household chores not directly related to the qualifying ADLs, nonmedical transportation, or financial management.
(2) Personal assistance services shall be provided to three target populations:
a. Individuals with physical disabilities:
1. Medicaid recipients of all ages with a documented medical condition or physical disability (diagnosis) that a physician attests limits the person's ability to independently perform ADLs.
b. Adults with a diagnosis of mental illness (MI), mental retardation/developmental disability (MR/DD), or cognitive impairment:
1. Medicaid recipients age 18 or older with a documented MI, MR/DD, or dementia diagnosis that a physician attests limits a person's ability to independently perform ADLs.
2. Must require 24‑hour caregiver availability as attested by a physician.
c. Elderly individuals with functional disabilities:
1. Medicaid recipients 65 years of age or older with physician‑documented limitations in functional abilities and risk of falls, malnutrition, skin breakdown, or complications from medication noncompliance.
d. The recipient shall be seen by his or her primary or attending physician, who shall provide written authorization for referral for the service and written attestation to the medical necessity for the service.
e. All assessments for personal assistance services, continuation of service, and change of status reviews shall be performed by DMA's independent assessment entity (IAE). The IAE may not be an owner of a provider business or provider of personal assistance services of any type.
1. The amount of service provided shall be based upon an independent assessment conducted by an IAE to determine the individual's ability to perform ADLs and IADLs. Ability shall be rated as totally independent, requiring cueing or supervision, requiring limited assistance, requiring extensive assistance, or totally dependent.
f. Adults receiving personal assistance services shall be subject to a maximum of 80 hours of service per month.
g. Adults qualifying for personal assistance services with unmet need for hands‑on assistance with one or zero ADLs shall be subject to a maximum of one hour of service per day of unmet need for assistance.
(3) To become eligible for personal assistance services, a Medicaid recipient shall meet the criteria for one of the target populations and its unmet need criteria based upon an individual assessment conducted by an independent assessment entity:
a. Individuals with physical disabilities:
1. Unmet need for hands‑on assistance with three ADLs; or
2. Unmet need for hands‑on assistance with two ADLs, one of which requires extensive or greater assistance; or
3. Unmet need for hands‑on assistance with two ADLs and assistance with meal preparation or medication management.
b. Adults with MI, MR/DD, or cognitive impairment
1. Unmet need for hands‑on assistance with two ADLs; or
2. Unmet need for hands‑on assistance with one ADL and set‑up/supervision assistance with two additional ADLs or assistance with meal preparation or medication management; or
3. Unmet need for set‑up/supervision assistance with two ADLs and assistance with meal preparation or medication management.
c. Elderly individuals with functional disabilities:
1. Unmet need for hands‑on assistance with two ADL; or
2. Unmet need for hands‑on assistance with one ADL and assistance with meal preparation or medication management.
(4) Personal assistance services shall be provided in the following settings:
a. A private living arrangement;
b. A residential facility licensed by the State of North Carolina as an adult care home, a family care home, or a supervised living facility for adults with MR/DD or MI; and
c. Personal assistance services shall not be provided in hospitals, nursing facilities, or secured facilities considered special care units within adult care homes.
(5) Personal assistance services shall be provided by enrolled Medicaid providers who meet the following qualifications:
a. Home care agencies:
1. Licensed under 10A NCAC 13J; and
2. Conduct criminal background and NC Health Care Registry checks before hiring, for all staff.
b. Adult care homes:
1. Licensed in accordance with G.S. 131 D and 10A NCAC 13F and 13G;
2. Meet the Centers for Medicare and Medicaid Services' (CMS) home‑ and community‑based services characteristics;
3. Conduct criminal background and NC Health Care Registry checks before hiring, for all staff.
4. Not determined an institution of mental disease (IMD) per federal regulation;
5. Shall provide service through ACH staff or qualified staff under contract to provide service; and
6. Direct care and medication aide staff shall meet training, competency, and other requirements as outlined in licensure.
c. Supervised living:
1. Licensed in accordance with G.S. 122C and 10A NCAC 27G .5600, Supervised Living Facilities designated as type A and C homes;
2. Meet CMS home‑ and community‑based services characteristics;
3. Conduct criminal background and NC Health Care Registry checks before hiring, for all staff;
4. Staff shall:
I. Meet requirements for paraprofessionals in 10A NCAC 27G .0204;
II. Have a high school diploma or GED;
III. Meet participant specific competencies as identified by the participant's person‑centered planning team and documented in the Person‑Centered Plan; and
IV. Successfully complete First Aid, CPR, and MH/DD/SAS Core Competencies and required refresher training.
V. Paraprofessionals providing this service shall be supervised by a qualified professional according to 10A NCAC 27G .0204 and licensure or certification requirements of appropriate disciplines.
(6) Personal assistance services provided in residential facility settings shall meet home‑ and community‑based services (HCBS) characteristics as defined by the federal Centers for Medicare and Medicaid Services (CMS).
a. HCBS standards must be applied to all residents in the facility, except where such activities or abilities are contraindicated specifically in an individual's person‑centered plan and applicable due process has been executed to restrict any of the standards or rights. Residents must be respectful to others in their community, and the facility has the authority to restrict activities when those activities are disruptive or in violation of the rights of others living in the community.
b. HCBS standards are defined as:
1. Telephone access:
I. Available 24 hours a day, seven days a week, 365 days a year;
II. Available operation assistance if necessary;
III. Private;
IV. Permitted personal phones in individual rooms.
2. Visitors:
I. Allowed 24 hours a day, seven days a week, 365 days a year;
II. No facility approval required (although facility may require visitors to sign in or notify the facility administrator once in the facility); and
III. No conduct requirements beyond respectful behavior toward other residents.
3. Living space:
I. No more than two residents to a room:
A. If two individuals share a room, allowed choice as to whom roommate is;
B. Not required to share a room with someone found objectionable;
II. Ability to work with the facility to achieve the closest optimal roommate situations;
III. Ability to lock rooms;
IV. Allowed to decorate and keep personal items in rooms;
V. Ability to come and go at any hour;
VI. Availability of an individual, personal, lockable storage space available at any time;
VII. Ability to file anonymous complaints; and
VIII Allowed personal appliances and devices in rooms.
4. Service customization:
I. Provides maximum privacy in the delivery of services;
II. Provides choice(s) in the structure of service delivery (services and supports, and from where and whom);
III. Includes the individual in care planning process as well as people chosen by the individual to attend care plan meetings;
IV. Provides the appropriate support(s) to ensure that the individual has an active role in directing the process;
V. Provides convenient location and times for person‑centered planning process for the individuals to attend; and
VI. Provides opportunities for the person‑centered plan to be updated on a continuous basis.
5. Kitchen
I. Accessible at any time 24 hours a day, seven days a week, 365 days a year;
II. Accessible appliances;
III. Allowed input on food options provided; and
IV. Allowed to choose with whom to eat meals including the ability to eat alone if desired.
6. Group activities:
I. Choice of participating in facility's recreational activities; and
II. Choice of with whom to participate in recreational activities.
7. Community activities:
I. Choice of participation in community activities;
II. Encouragement to remain active in their community;
III. Not be restricted from participating in community activities of their choosing.
8. Community integration:
I. Facility viewed as part of the community."
MEDICAID RECIPIENT APPEALS
SECTION 10.8.(a) The Department of Health and Human Services shall review the appeals process for adverse Medicaid determinations for Medicaid recipients to examine whether it conforms with, or exceeds, the requirements of federal law.
SECTION 10.8.(b) G.S. 108A‑79(a) reads as rewritten:
"(a) A public assistance applicant or recipient shall have a right to appeal the decision of the county board of social services, county department of social services, or the board of county commissioners or the local management entity (LME) operating under a 1915(b)/(c) Medicaid Waiver granting, denying, terminating, or modifying assistance, or the failure of the county board of social services or county department of social services to act within a reasonable time under the rules and regulations of the Social Services Commission or the Department. Each applicant or recipient shall be notified in writing of his right to appeal upon denial of his application for assistance and at the time of any subsequent action on his case."
Medicaid and Health Choice Provider Screening
SECTION 10.9. G.S. 108C‑3 reads as rewritten:
"§ 108C‑3. Medicaid and Health Choice provider screening.
(c) Limited Categorical Risk Provider Types. The following provider types are hereby designated as "limited" categorical risk:
(11a) Portable X‑ray suppliers.
(13a) Religious nonmedical health care institutions.
(e) Moderate Categorical Risk Provider Types. The following provider types are hereby designated as "moderate" categorical risk:
(7a) Local health departments.
."
TANF BENEFIT IMPLEMENTATION
SECTION 10.10. Section 10.55 of S.L. 2011‑145 reads as rewritten:
"SECTION 10.55.(a) The General Assembly approves
the plan titled "North Carolina Temporary Assistance for Needy Families
State Plan FY 2010‑2012,2012‑2014" 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, 2010, 2012, through September 30, 2012.
2014. 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
2011 General Assembly.
"SECTION 10.55.(b) The counties approved as
Electing Counties in the North Carolina Temporary Assistance for Needy Families
State Plan FY 2010‑2012, 2012‑2014 as approved by
this section are Beaufort, Caldwell, Catawba, Lenoir, Lincoln, Macon, and
Wilson.
"SECTION 10.55.(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 year 2011 2012
through 2012, 2014, pursuant to G.S. 108A‑27(e),
shall operate under the Electing County budget requirements effective July 1, 2009.
2012. For programmatic purposes, all counties referred to in this
subsection shall remain under their current county designation through
September 30, 2012.2014.
"SECTION 10.55.(d) For the 2011‑2012 2012‑2014
fiscal year, Electing Counties shall be held harmless to their Work First
Family Assistance allocations for the 2010‑2011 2012‑2014
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. 108A‑27.11(b).
"SECTION 10.55.(e) In the event that
departmental projections of Work First Family Assistance and Work First
Diversion Assistance for the 2011‑2012 2012‑2014 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."
TELECOMMUNICATIONS RELAY SERVICE
SECTION 10.11. G.S. 62‑157 reads as rewritten:
"§ 62‑157. Telecommunications relay service.
(a) Finding. The General Assembly finds and declares that it is in the public interest to provide access to public telecommunications services for hearing impaired or speech impaired persons, including those who also have vision impairment, and that a statewide telecommunications relay service for telephone service should be established.
(a1) Definitions. For purposes of this section:
(1) "CMRS" is as defined in G.S. 62A‑40.
(2) "CMRS connection" is as defined in G.S. 62A‑40.
(3) "CMRS provider" is as defined in G.S. 62A‑40.
(4) "Exchange access facility" means the access from a particular telephone subscriber's premises to the telephone system of a local exchange telephone company, and includes local exchange company‑provided access lines, private branch exchange trunks, and centrex network access registers, all as defined by tariffs of telephone companies as approved by the Commission.
(5) "Local service provider" means a local exchange company, competing local provider, or telephone membership corporation.
(b) Authority to Require Surcharge. The Commission shall require local service providers to impose a monthly surcharge on all residential and business local exchange access facilities to fund a statewide telecommunications relay service by which hearing impaired or speech impaired persons, including those who also have vision impairment, may communicate with others by telephone. This surcharge, however, may not be imposed on participants in the Subscriber Line Charge Waiver Program or the Link‑up Carolina Program established by the Commission. This surcharge, and long distance revenues collected under subsection (f) of this section, are not includable in gross receipts subject to the franchise tax levied under G.S. 105‑120 or the sales tax levied under G.S. 105‑164.4.
(c) Specification of Surcharge. The Department of Health and Human Services shall initiate a telecommunications relay service by filing a petition with the Commission requesting the service and detailing initial projected required funding. The Commission shall, after giving notice and an opportunity to be heard to other interested parties, set the initial monthly surcharge based upon the amount of funding necessary to implement and operate the service, including a reasonable margin for a reserve. The surcharge shall be identified on customer bills as a special surcharge for provision of a telecommunications relay service for hearing impaired and speech impaired persons. The Commission may, upon petition of any interested party, and after giving notice and an opportunity to be heard to other interested parties, revise the surcharge from time to time if the funding requirements change. In no event shall the surcharge exceed twenty‑five cents (25’) per month for each exchange access facility.
(d) Funds to Be Deposited in Special Account. The local service providers shall collect the surcharge from their customers and deposit the moneys collected with the State Treasurer, who shall maintain the funds in an interest‑bearing, nonreverting account. After consulting with the State Treasurer, the Commission shall direct how and when the local service providers shall deposit these moneys. Revenues from this fund shall be available only to the Department of Health and Human Services to administer the statewide telecommunications relay service program, including its establishment, operation, and promotion. The Commission may allow the Department of Health and Human Services to use up to four cents (4’) per access line per month of the surcharge for the purpose of providing telecommunications devices for hearing impaired or speech impaired persons, including those who also have vision impairment, through a distribution program. The Commission shall prepare such guidelines for the distribution program as it deems appropriate and in the public interest. Both the Commission and the Public Staff may audit all aspects of the telecommunications relay service program, including the distribution programs, as they do with any public utility subject to the provisions of this Chapter. Equipment paid for with surcharge revenues, as allowed by the Commission, may be distributed only by the Department of Health and Human Services.
(d1) The Department of Health and Human Services shall
utilize revenues from the wireless surcharge collected under subsection (i) of
this section to fund the Regional Resource Centers within the Division of
Services for the Deaf and the Hard of Hearing, support the Division of
Services for the Deaf and Hard of Hearing, in accordance with G.S. 143B‑216.33,
G.S. 143B‑216.34, and Chapter 8B of the General Statutes.
(e) Administration of Service. The Department of Health and Human Services shall administer the statewide telecommunications relay service program, including its establishment, operation, and promotion. The Department may contract out the provision of this service for four‑year periods to one or more service providers, using the provisions of G.S. 143‑129. The Department shall administer all programs and services, including the Regional Resource Centers within the Division of Services for the Deaf and the Hard of Hearing in accordance with G.S. 143B‑216.33, G.S. 143B‑216.34, and Chapter 8B of the General Statutes.
(f) Charge to Users. The users of the telecommunications relay service shall be charged their approved long distance and local rates for telephone services (including the surcharge required by this section), but no additional charges may be imposed for the use of the relay service. The local service providers shall collect revenues from the users of the relay service for long distance services provided through the relay service. These revenues shall be deposited in the special fund established in subsection (d) of this section in a manner determined by the Commission after consulting with the State Treasurer. Local service providers shall be compensated for collection, inquiry, and other administrative services provided by said companies, subject to the approval of the Commission.
(g) Reporting Requirement. The Commission shall, after consulting with the Department of Health and Human Services, develop a format and filing schedule for a comprehensive financial and operational report on the telecommunications relay service program. The Department of Health and Human Services shall thereafter prepare and file these reports as required by the Commission with the Commission and the Public Staff. The Department shall also be required to report to the Revenue Laws Study Committee.
(h) Power to Regulate. The Commission shall have the same power to regulate the operation of the telecommunications relay service program as it has to regulate any public utility subject to the provisions of this Chapter.
(i) Wireless Surcharge. A CMRS provider, as part of its monthly billing process, must collect the same surcharge imposed on each exchange access facility under this section for each CMRS connection. A CMRS provider may deduct a one percent (1%) administrative fee from the total amount of surcharge collected. A CMRS provider shall remit the surcharge collected, less the administrative fee, to the 911 Board in the same manner and with the same frequency as the local service providers remit the surcharge to the State Treasurer. The 911 Board shall remit the funds collected from the surcharge to the special account created under subsection (d) of this section."
CONSOLIDATION OF ALL PUBLIC GUARDIANSHIP
SECTION 10.12.(a) G.S. 35A‑1202(4) reads as rewritten:
"(4) "Disinterested public agent" means
a. the director or assistant directors of a local
human services agency, orcounty department of social services.
b. An adult officer, agent, or employee of a
State human services agency.
The fact that a disinterested public agent is
employed by a State or local human services agency that provides financial
assistance, services, or treatment to a ward does not disqualify that person
from being appointed as guardian."
SECTION 10.12.(b) G.S. 35A‑1213(c) reads as rewritten:
"(c) A corporation may be appointed as guardian only if it is authorized by its charter to serve as a guardian or in similar fiduciary capacities. A corporation must meet the requirements outlined in Chapter 55 of the General Statutes, North Carolina Business Corporation Act, and Chapter 55D of the General Statutes, Filings, Names, and Registered Agents for Corporations, Nonprofit Corporations, and Partnerships. A corporation will provide a written copy of its charter to the clerk of superior court. A corporation contracting with a public agency to serve as guardian is required to attend guardianship training provided by the Department of Health and Human Services and provide verification of attendance to the contracting agency."
SECTION 10.12.(c) G.S. 35A‑1292(a) reads as rewritten:
"(a) Any guardian who wishes to resign may
apply in writing to the clerk, must file a motion with the clerk setting
forth the circumstances of the case. If a general guardian or guardian of the
estate, at the time of making the application, also exhibits his final account
for settlement, and if the clerk is satisfied that the guardian has fully
accounted, the clerk may accept the resignation of the guardian and discharge
him and appoint a successor guardian, but the guardian. The guardian
so discharged and his sureties are still liable in relation to all matters
connected with the guardianship before the discharge.discharge
and must continue to ensure that the ward's needs are met until the clerk
officially appoints a successor. The guardian must attend the hearing to modify
guardianship, if physically able."
Amend State Directory of New Hire Statute to comply with federal requirements
SECTION 10.13.(a) G.S. 110‑129.2(c) reads as rewritten:
"(c) Report Contents. Each report required by
this section shall contain the name, address, and address, social
security number of the employee, employee, the date services
for remuneration were first performed by the employee, and the name and
address of the employer and the employer's identifying number assigned under
section 6109 of the Internal Revenue Code of 1986 and the employer's State
employer identification number. Reports shall be made on the W‑4 form or,
at the option of the employer, an equivalent form, and may be transmitted
magnetically, electronically, or by first‑class mail."
SECTION 10.13.(b) G.S. 110‑129.2(j) reads as rewritten:
"(j) Definitions. As used in this section, unless the context clearly requires otherwise, the term:
(1) "Business day" means a day on which State offices are open for business.
(2) "Department" means the Department of Health and Human Services.
(3) "Employee" means an individual who is an employee within the meaning of Chapter 24 of the Internal Revenue Code of 1986. The term "employee" does not include an employee of a federal or State agency performing intelligence or counterintelligence functions, if the head of the agency has determined that reporting information as required under this section could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.
(4) "Employer" has the meaning given the term in section 3401(d) of the Internal Revenue Code of 1986 and includes persons who are governmental entities and labor organizations. The term "labor organization" shall have the meaning given that term in section 2(5) of the National Labor Relations Act, and includes any entity which is used by the organization and an employer to carry out requirements described in section 8(f)(3) of the National Labor Relations Act of an agreement between the organization and the employer.
(5) "Newly hired employee" means an employee who:
a. Has not previously been employed by the employer; or
b. Was previously employed by the employer but has been separated from such prior employment for at least 60 consecutive days."
CHANGES TO LICENSURE STATUTES FOR LICENSED CLINICAL SOCIAL WORKERS CLINICAL ADDICTION SPECIALISTS, AND PSYCHOLOGISTS
SECTION 10.14.(a) G.S. 90‑270.5(d)(3) reads as rewritten:
"(3) A psychologist who meets all other requirements
of G.S. 90‑270.11(a) as a licensed psychologist, except the two
years of supervised experience, may be issued a provisional license as a
psychologist, or a license as a psychological associate, without having
received a master's degree or specialist degree in psychology, by the Board
for the practice of psychology. If the psychologist terminates the
supervised experience before the completion of two years, the Board may place
the psychologist on inactive status, during which time supervision will not be
required, and the practice of psychology or the offer to practice psychology is
prohibited. In the event a licensed psychologist issued a provisional license
under this subsection is placed on inactive status or is completing the
supervised experience on a part‑time basis, the Board may renew the provisional
license as necessary until such time as the psychologist has completed the
equivalent of two years' supervised experience.
SECTION 10.14.(b) G.S. 90B‑3 reads as rewritten:
"§ 90B‑3. Definitions.
The following definitions apply in this Chapter:
(7a) Provisional Licensed Clinical Social Worker.
Associate. A person issued a provisional an associate license
to provide clinical social work services pursuant to G.S. 90B‑7(f).
(8) Social Worker. A person certified, licensed, or provisionally
associate licensed by this Chapter or otherwise exempt under G.S. 90B‑10.
."
SECTION 10.14.(c) G.S. 90B‑7(f) reads as rewritten:
"(f) The Board may issue a provisional an
associate license in clinical social work to a person who has a masters or
doctoral degree in a social work program from a college or university having a
social work program approved by the Council on Social Work Education and
desires to be licensed as a clinical social worker. The provisional associate
license may not be issued for a period exceeding two years and the person
issued the provisional associate license must practice under the
supervision of a licensed clinical social worker or a Board‑approved
alternate. Notwithstanding G.S. 90B‑6(g), a provisional an
associate licensee shall pass the qualifying clinical examination
prescribed by the Board within two years to be eligible for renewal of the provisional
associate license. The provisional associate licensee
shall complete all requirements for full licensure within three renewal
cycles, or a total of six years, unless otherwise directed by the Board."
SECTION 10.14.(d) G.S. 90B‑16 reads as rewritten:
"§ 90B‑16. Title protection.
(a) Except as provided in G.S. 90B‑10, an
individual who (i) is not certified, licensed, or provisionally associate
licensed by this Chapter as a social worker, (ii) does not hold a bachelor's
or master's degree in social work from a college or university having a social
work program accredited or admitted to candidacy for accreditation by the
Council of Social Work Education, or (iii) has not received a doctorate in
social work shall not use the title "Social Worker" or any variation
of the title.
(b) The Board is authorized to enforce title protection pursuant to this section in accordance with G.S. 90B‑13.
(c) The Board shall adopt rules to implement this section."
SECTION 10.14.(e) G.S. 90‑113.31A reads as rewritten:
"§ 90‑113.31A. Definitions.
The following definitions shall apply in this Article:
(22a) Provisional licensed clinical addictions
specialist. Licensed clinical addictions specialist associate. A
registrant who successfully completes 300 hours of Board‑approved
supervised practical training in pursuit of licensure as a clinical addictions
specialist.
(26) Substance abuse professional. A registrant,
certified substance abuse counselor, substance abuse counselor intern,
certified substance abuse prevention consultant, certified clinical supervisor,
provisional licensed clinical addictions specialist, licensed
clinical addictions specialist associate, licensed clinical addictions
specialist, certified substance abuse residential facility director, clinical
supervisor intern, or certified criminal justice addictions professional.
."
SECTION 10.14.(f) G.S. 90‑113.42 reads as rewritten:
"(d) Only individuals registered, certified, or
licensed under this Article may use the title "Certified Substance Abuse
Counselor", "Certified Substance Abuse Prevention Consultant", "Certified
Clinical Supervisor", "Licensed Clinical Addictions Specialist",
"Certified Substance Abuse Residential Facility Director", "Certified
Criminal Justice Addictions Professional", "Substance Abuse Counselor
Intern", "Provisional Licensed Clinical Addictions Specialist",
"Licensed Clinical Addictions Specialist Associate," "Clinical
Supervisor Intern", or "Registrant"."
SECTION 10.14.(g) G.S. 90‑113.43 reads as rewritten:
"§ 90‑113.43. Illegal practice; misdemeanor penalty.
(a) Except as otherwise authorized in this Article, no person shall:
(1) Offer substance abuse professional services,
practice, attempt to practice, or supervise while holding himself or herself
out to be a certified substance abuse counselor, certified substance abuse
prevention consultant, certified clinical supervisor, licensed clinical
addictions specialist, provisional licensed clinical addictions specialist, licensed
clinical addictions specialist associate, certified substance abuse
residential facility director, certified criminal justice addictions
professional, clinical supervisor intern, substance abuse counselor intern, or
registrant without first having obtained a notification of registration,
certification, or licensure from the Board.
(2) Use in connection with any name any letters, words,
numerical codes, or insignia indicating or implying that this person is a
registrant, certified substance abuse counselor, certified substance abuse
prevention consultant, certified clinical supervisor, licensed clinical
addictions specialist, certified substance abuse residential facility director,
substance abuse counselor intern, certified criminal justice addictions
professional, or provisional licensed clinical addictions specialist licensed
clinical addictions specialist associate unless this person is registered,
certified, or licensed pursuant to this Article.
(3) Practice or attempt to practice as a certified
substance abuse counselor, certified substance abuse prevention consultant,
certified clinical supervisor, licensed clinical addictions specialist,
certified criminal justice addictions professional, substance abuse counselor
intern, provisional licensed clinical addictions specialist, licensed
clinical addictions specialist associate, clinical supervisor intern,
certified substance abuse residential facility director or registrant with a
revoked, lapsed, or suspended certification or license.
(4) Aid, abet, or assist any person to practice as a
certified substance abuse counselor, certified substance abuse prevention
consultant, certified criminal justice addictions professional, certified
clinical supervisor, licensed clinical addictions specialist, certified
substance abuse residential facility director, registrant, substance abuse
counselor intern, provisional licensed clinical addictions specialist, licensed
clinical addictions specialist associate, or clinical supervisor intern in
violation of this Article.
(5) Knowingly serve in a position required by State law
or rule or federal law or regulation to be filled by a registrant, certified
substance abuse counselor, certified substance abuse prevention consultant,
certified criminal justice addictions professional, certified clinical
supervisor, licensed clinical addictions specialist, certified substance abuse
residential facility director, substance abuse counselor intern, provisional
licensed clinical addictions specialist, licensed clinical addictions
specialist associate, or clinical supervisor intern unless that person is
registered, certified, or licensed under this Article.
(6) Repealed by S.L. 1997‑492, s. 13.
(7) Repealed by Session Laws 2008‑130, s. 6, effective July 28, 2008.
(b) A person who engages in any of the illegal practices enumerated by this section is guilty of a Class 1 misdemeanor. Each act of unlawful practice constitutes a distinct and separate offense."
DISCLOSURE OF ESC DATA
SECTION 10.15. G.S. 96‑4(x)(1) reads as rewritten:
"(x) Confidentiality of Records, Reports, and Information Obtained from Claimants, Employers, and Units of Government.
(1) Confidentiality of Information Contained in Records
and Reports. (i) Except as hereinafter otherwise provided, it shall be
unlawful for any person to obtain, disclose, or use, or to authorize or permit
the use of any information which is obtained from any employing unit,
individual, or unit of government pursuant to the administration of this
Chapter or G.S. 108A‑29. (ii) Any claimant or employer or their
legal representatives shall be supplied with information from the records of
the Division to the extent necessary for the proper presentation of claims or
defenses in any proceeding under this Chapter. Notwithstanding any other
provision of law, any claimant may be supplied, subject to restrictions as the
Division may by regulation prescribe, with any information contained in his
payment record or on his most recent monetary determination, and any
individual, as well as any interested employer, may be supplied with
information as to the individual's potential benefit rights from claim records.
(iii) Subject to restrictions as the Secretary may by regulation provide,
information from the records of the Division may be made available to any
agency or public official for any purpose for which disclosure is required by
statute or regulation. (iv) The Division may, in its sole discretion, permit
the use of information in its possession by public officials in the performance
of their public duties. (v) The Division may, in its sole discretion, permit
the use of information in its possession to an agent or contractor of a public
official to whom disclosure is permissible under (iv) above. (vi) The
Division shall release the payment and the amount of unemployment compensation
benefits upon receipt of a subpoena in a proceeding involving child support. (vi)
(vii) The Division shall furnish to the State Controller any
information the State Controller needs to prepare and publish a comprehensive
annual financial report of the State or to track debtors of the State."
FALSE CLAIMS ACT
SECTION 10.16.(a) G.S. 1‑606 reads as rewritten:
"§ 1‑606. Definitions.
The following words and phrases when used in this act have the following meanings, unless the context clearly indicates otherwise:
(7) "Public employee," "public
official," and "public employment" includes federal, State, and
local employees and officials."
."
SECTION 10.16.(b) G.S. 1‑608 reads as rewritten:
"§ 1‑608. Civil actions for false claims.
(a) Responsibilities of the Attorney General. The Attorney General diligently shall investigate a violation under G.S. 1‑607. If the Attorney General finds that a person has violated or is violating G.S. 1‑607, the Attorney General may bring a civil action under this section against that person.
(b) Actions by Private Persons. A person may bring a civil action for a violation of G.S. 1‑607 or under G.S. 108A‑70.12 for the person and for the State, as follows:
(1) The action shall be brought in the name of the State, and the person bringing the action shall be referred to as the qui tam plaintiff. Once filed, the action may be dismissed voluntarily by the person bringing the action only if the court and Attorney General have given written consent to the dismissal.
(2) A copy of the complaint and written disclosure of substantially all material evidence and information the person possesses shall be served on the Attorney General pursuant to applicable rules of the North Carolina Rules of Civil Procedure. The complaint shall be filed in camera, shall remain under seal for at least 120 days, and shall not be served on the defendant until the court so orders. The State may elect to intervene and proceed with the action within 120 days after it receives both the complaint and the material evidence and information.
(3) The State may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal under subdivision (2) of this subsection. Any such motions may be supported by affidavits or other submissions in camera. The defendant shall not be required to respond to any complaint filed under this section until 30 days after the complaint is unsealed and served upon the defendant pursuant to the North Carolina Rules of Civil Procedure.
(4) Before the expiration of the 120‑day period or any extensions obtained under subdivision (3) of this subsection, the State shall:
a. Proceed with the action, in which case the action shall be conducted by the State; or
b. Notify the court that it declines to take over the action, in which case the person bringing the action shall have the right to conduct the action.
(5) When a person brings an action under this
subsection, the federal False Claims Act, 31 U.S.C. § 3729 et seq., or any
similar provision of law in any other state, no person other than the State
may intervene or bring a related action based on the facts underlying the
pending action; provided, however, that nothing in this subdivision
prohibits a person from amending a pending action in another jurisdiction to
allege a claim under this subsection.action.
(c) The Attorney General may retain a portion of the damages recovered for a State agency out of the proceeds of the action or settlement under this Article as reimbursement for costs incurred by the Attorney General in investigating and bringing a civil action under this Article, including reasonable attorneys' fees and investigative costs. Retained funds shall be used by the Attorney General to carry out the provisions of this Article."
SECTION 10.16.(c) G.S. 1‑611 reads as rewritten:
"§ 1‑611. Certain actions barred.
(c) No civil action may be brought under
this Article by a person who is or was a public employee or public official if
the allegations of such action are based substantially upon either of the
following:
(1) Allegations of wrongdoing or misconduct
which such person had a duty or obligation to report or investigate within the
scope of his or her public employment or office.
(2) Information or records to which the
person had access as a result of his or her public employment or office.
(d) No court shall have jurisdiction over an
action under G.S. 1‑608(b) based upon the public disclosure of
allegations or transactions (i) in a criminal, civil, or administrative hearing
at the State or federal level, (ii) in a congressional, legislative,
administrative, General Accounting Office, or State Auditor's report, hearing,
audit, or investigation, or (iii) from the news media, unless the action is
brought by the Attorney General, or the person bringing the action is an
original source of the information. For purposes of this section, "original
source" means an individual who has direct and independent knowledge of
the information on which the allegations are based and has voluntarily provided
the information to the State before filing an action under G.S. 1‑608(b)
that is based on the information.
(c) (1) The court shall dismiss an action or claim under this Article, unless opposed by the State, if substantially the same allegations or transactions as alleged in the action or claim were publicly disclosed:
a. In a State criminal, civil, or administrative hearing in which the State or its agent is a party;
b. In a State legislative, Office of the State Auditor, or other State report, hearing, audit, or investigation; or
c. From the news media,
unless the action is brought by the Attorney General or the person bringing the action is an original source of the information.
(2) For purposes of this section, "original source" means an individual who either:
a. Prior to a public disclosure under subsection (c)(1) of this section, has voluntarily disclosed to the State the information on which allegations or transactions in a claim are based, or
b. Who has knowledge that is independent of and materially adds to the publicly disclosed allegations or transactions, and who has voluntarily provided the information to the State before filing an action under this Article."
SECTION 10.16.(d) G.S. 1‑613 reads as rewritten:
"§ 1‑613. Private action for retaliation action.
Any employee, contractor, or agent who is discharged,
demoted, suspended, threatened, harassed, or in any other manner discriminated
against in the terms and conditions of employment because of lawful acts done
by the employee, contractor, or agent on behalf of the employee, contractor,
or agent or associated others in furtherance of an action under this Article,
or in furtherance of Article or other efforts to stop one or more
violations of G.S. 1‑607, including investigation for, initiation
of, testimony for, or assistance in an action filed or to be filed under this
Article, shall be entitled to all relief necessary to make the employee whole.
Such relief shall include reinstatement with the same seniority status the
employee, contractor, or agent would have had but for the discrimination, two
times the amount of back pay, interest on the back pay, and compensation for
any special damages sustained as a result of the discrimination, including
litigation costs and reasonable attorneys' fees. An employee, contractor, or
agent may bring an action in superior court for the relief provided in this
section. A civil action under this section may not be brought more
than three years after the date when the retaliation occurred."
REPAYMENT OF FEDERAL PORTION OF DRUG REBATES FOR CALENDAR YEAR 2010
SECTION 10.17. The Secretary may utilize overrealized drug rebates in the Division of Medical Assistance and prior year earned revenue received for the Department of Health and Human Services to repay the twenty‑four million six hundred twenty‑nine thousand fifty‑eight dollars ($24,629,058) that is owed to the Center for Medicaid and Medicare Services (CMS) for the period January 1, 2010, through December 1, 2010. States have until September 30, 2012, to pay CMS for the federal share of drug rebates due for the calendar year 2010 that are a result of federal regulation changes due to the Affordable Care Act. In the event the Department does not receive prior year earned revenues or overrealized drug rebates in the amounts authorized by this section, the Department is authorized, with the approval of the Director of the Budget, to utilize overrealized receipts and funds appropriated to the Department to achieve the level of funding specified in this section for repayment of the federal portion of the drug rebate to CMS.
Hospital Notification of Eligibility and Availability of Charity Care
Section 10.18. Hospitals are required to post notice in conspicuous places throughout the hospital, including the billing office, that describe their financial assistance policies and state how to apply for free and reduced‑cost care. A hospital shall include on every patient bill information that describes the hospital's financial assistance policy, including eligibility requirements and how to apply for financial assistance. The information will also include contact information for appropriate hospital staff available to help the patients understand how they can apply for free and reduced‑cost care.
Study to Analyze/Develop Transparency in Hospital Billing
Section 10.19. The sum of one hundred thousand dollars ($100,000) is appropriated to the Department of Health and Human Services for the 2012‑2013 State fiscal year for a study by the North Carolina Institute of Medicine (NCIOM). NCIOM shall study, analyze, and develop recommendations for greater transparency in hospital billing that will lead to better patients understanding of their health care costs. NCIOM will submit a final report by February 15, 2013, to the Governor and the General Assembly.
MENTAL HEALTH CHANGES
SECTION 10.20. Section 10.8 of S.L. 2011‑145 reads as rewritten:
"SECTION 10.8.(a) For the purpose of mitigating cash flow problems that many nonsingle‑stream local management entities (LMEs) experience at the beginning of each fiscal year, the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall adjust the timing and method by which allocations of service dollars are distributed to each nonsingle‑stream LME. To this end, the allocations shall be adjusted such that at the beginning of the fiscal year the Department shall distribute not less than one‑twelfth of the LME's continuation allocation and subtract the amount of the adjusted distribution from the LME's total reimbursements for the fiscal year.
"SECTION 10.8.(b) Of the funds appropriated in
this act to the Department of Health and Human Services, Division of Mental
Health, Developmental Disabilities, and Substance Abuse Services, the sum of
twenty‑nine million one hundred twenty‑one thousand six hundred
forty‑four dollars ($29,121,644) for the 2011‑2012 fiscal year and
the sum of twenty thirty‑nine million one hundred twenty‑one
thousand six hundred forty‑four dollars ($29,121,644) ($39,121,644)
for the 2012‑2013 fiscal year shall be allocated for the purchase of
local inpatient psychiatric beds or bed days. In addition, at the discretion
of the Secretary of Health and Human Services, existing funds allocated to LMEs
for community‑based mental health, developmental disabilities, and
substance abuse services may be used to purchase additional local inpatient
psychiatric beds or bed days.In addition, at the discretion of the
Secretary of Health and Human Services, the Division may use up to ten percent
(10%) of these funds to support indigent local psychiatric beds or bed days in
hospitals with the highest psychiatric care rates that are not currently
participating in the Three‑Way Bed Contract Initiative. The Secretary of
the Department of Health and Human Services shall designate the hospitals and
the amount each hospital may receive. These beds or bed days shall
be distributed across the State in LME catchment areas and according to need as
determined by the Department. The Department shall enter into contracts with
the LMEs and community hospitals for the management of these beds or bed days.
The Department shall work to ensure that these contracts are awarded equitably
around all regions of the State. Local inpatient psychiatric beds or bed days
shall be managed and controlled by the LME, including the determination of
which local or State hospital the individual should be admitted to pursuant to
an involuntary commitment order. Funds shall not be allocated to LMEs but shall
be held in a statewide reserve at the Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services to pay for services authorized by
the LMEs and billed by the hospitals through the LMEs. LMEs shall remit claims
for payment to the Division within 15 working days of receipt of a clean claim
from the hospital and shall pay the hospital within 30 working days of receipt
of payment from the Division. If the Department determines (i) that an LME is
not effectively managing the beds or bed days for which it has responsibility,
as evidenced by beds or bed days in the local hospital not being utilized while
demand for services at the State psychiatric hospitals has not reduced, or (ii)
the LME has failed to comply with the prompt payment provisions of this
subsection, the Department may contract with another LME to manage the beds or
bed days, or, notwithstanding any other provision of law to the contrary, may pay
the hospital directly. The Department shall develop reporting requirements for
LMEs regarding the utilization of the beds or bed days. Funds appropriated in
this section for the purchase of local inpatient psychiatric beds or bed days
shall be used to purchase additional beds or bed days not currently funded by
or through LMEs and shall not be used to supplant other funds available or
otherwise appropriated for the purchase of psychiatric inpatient services under
contract with community hospitals, including beds or bed days being purchased
through Hospital Utilization Pilot funds appropriated in S.L. 2007‑323.
Not later than March 1, 2012, 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, the Joint
Legislative Oversight Committee on Mental Health, Developmental Disabilities,
and Substance Abuse Services, and the Fiscal Research Division on a uniform
system for beds or bed days purchased (i) with local funds, (ii) from existing
State appropriations, (iii) under the Hospital Utilization Pilot, and (iv)
purchased using funds appropriated under this subsection.
"SECTION 10.8.(c) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for mobile crisis teams, the sum of five million seven hundred thousand dollars ($5,700,000) shall be distributed to LMEs to support 30 mobile crisis teams. The new mobile crisis units shall be distributed over the State according to need as determined by the Department.
"SECTION 10.8.(d) The Department of Health and Human Services may create a midyear process by which it can reallocate State service dollars away from LMEs that do not appear to be on track to spend the LMEs' full appropriation and toward LMEs that appear able to spend the additional funds."
ADULT PROTECTIVE SERVICES PILOT
SECTION 10.21.(a) The Department of Health and Human Services, Division of Aging and Adult Services, in conjunction with county departments of social services, shall implement the findings and recommendations from the Department's Adult Protective Services Task Force. These findings and recommendations described as the North Carolina Vulnerable Adult Protection System (VAPS) shall be implemented in up to six pilot sites across the State and will be used when responding to allegations of abuse, neglect, exploitation, or substantial risk of vulnerable and elder adults not previously covered by Article 6 of Chapter 108A of the General Statutes. The Division of Aging and Adult Services shall consider geographic balance and county population in implementing the pilot and shall use a Request for Proposal process to select pilot counties. G.S. 1A‑1, Rule 4, Rules of Civil Procedure, and G.S. 7A‑451(a)(11), 7A‑450, and 7A‑451(9a)(11) shall apply in the pilot counties.
SECTION 10.21.(b) The Division of Aging and Adult Services shall develop data collection processes and conduct an evaluation of the pilot sites to enable the General Assembly to assess the impact on the following:
(1) Vulnerable and elder adult safety;
(2) Identification and protection of unserved and underserved vulnerable and elder adults alleged to be abused, neglected, or exploited and those vulnerable and elder adults at substantial risk of abuse, neglect, or exploitation;
(3) Effectiveness of the three components of the Vulnerable Adult Protection System to strengthen the State's response to allegations of abuse, neglect, and exploitation or substantial risk of vulnerable and elder adults;
(4) Coordination among local human services providers and other community partners;
(5) Cost‑effectiveness of the Vulnerable Adult Protection System; and
(6) Improved capacity to provide protective services utilizing policies and procedures developed by the Division of Aging and Adult Services for the delivery of Adult Protective Services in the pilot counties.
SECTION 10.21.(c) The sum of two million three hundred seventy‑five thousand six hundred forty‑nine dollars ($2,375,649) appropriated to the Department of Health and Human Services, Division of Aging and Adult Services, for 2012‑2013 fiscal year shall be used to carry out the requirements in subsections (a) and (b) of this section. The Department may use up to $100,00 to support one FTE and an independent evaluator for the pilot initiative. Of the remaining funds, county departments of social services may use up to one million five hundred seventy‑seven thousand three hundred twenty‑two dollars ($1,577,322) to hire staff to support this pilot and six hundred forty‑one thousand twenty‑three dollars ($641,023) to support essential services when other funded services are not available.
SECTION 10.21.(d) It is the intent of the General Assembly that the pilot will operate for three years. The Department shall report 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, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division no later than October 1, 2015.
DHHS BLOCK GRANTS
SECTION 10.22.(a) Appropriations from federal block grants are made for the fiscal year ending June 30, 2013, according to the following schedule:
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) FUNDS
Local Program Expenditures
Division of Social Services
01. Work First Family Assistance $61,671,297
02. Work First County Block Grants 83,386,330
03. Work First Electing Counties 2,378,213
04. Adoption Services Special Children's Adoption Fund 2,026,877
05. Child Protective Services Child Welfare
Workers for Local DSS 11,533,284
06. Child Welfare Collaborative 632,416
Division of Child Development
07. Subsidized Child Care Program 60,014,626
Division of Public Health
08. Teen Pregnancy Prevention Initiatives 2,096,550
09. Teen Pregnancy Initiatives 377,379
DHHS Administration
10. Division of Social Services 2,482,260
11. Office of the Secretary 34,042
Transfers to Other Block Grants
Division of Child Development
12. Transfer to the Child Care and Development Fund 79,437,674
13. Transfer to Social Services Block Grant for Child
Protective Services Child Welfare Training in
Counties 1,300,000
14. Transfer to Social Services Block Grant for Child
Protective Services 5,040,000
15. Transfer to Social Services Block Grant for County
Departments of Social Services 4,148,001
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) FUNDS $ 316,558,949
TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF)
EMERGENCY CONTINGENCY FUNDS
Local Program Expenditures
Division of Social Services
01. Work First Family Assistance $ 6,141,103
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF)
EMERGENCY CONTINGENCY FUNDS $ 6,141,103
SOCIAL SERVICES BLOCK GRANT
Local Program Expenditures
Divisions of Social Services and Aging and Adult Services
01. County Departments of Social Services $ 42,160,252
(Transfer from TANF $4,148,001)
02. Child Protective Services (Transfer from TANF) 5,040,000
03. Adult Protective Services 1,346,047
04. State In‑Home Services Fund 2,101,113
05. State Adult Day Care Fund 2,155,301
06. Child Protective Services/CPS Investigative
Services‑Child Medical Evaluation Program 609,455
07. Special Children Adoption Incentive Fund 500,000
08. Child Protective Services‑Child Welfare Training
for Counties (Transfer from TANF) 1,300,000
09. Home and Community Care Block Grant (HCCBG) 1,834,077
Division of Central Management and Support
10. Developmental Disabilities Services Program 4,356,604
DHHS Program Expenditures
Division of Aging and Adult Services
11. UNC‑CARES Training Contract 247,920
Division of Services for the Blind
12. Independent Living Program 3,633,077
13. Accessible Electronic Information for Blind and Disabled Persons 75,000
Division of Health Service Regulation
14. Adult Care Licensure Program 411,897
15. Mental Health Licensure and Certification Program 205,668
DHHS Administration
16. Division of Aging and Adult Services 688,436
17. Division of Social Services 892,624
18. Office of the Secretary/Controller's Office 138,058
19. Office of the Secretary/DIRM 87,483
20. Division of Child Development 15,000
21. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 29,665
22. Division of Health Service Regulation 235,625
23. Office of the Secretary 48,053
Transfers to Other Block Grants
Division of Public Health
24. Transfer to Preventive Health Services Block Grant
for HIV/STD Prevention and Community Planning 145,819
TOTAL SOCIAL SERVICES BLOCK GRANT $ 68,257,174
LOW‑INCOME HOME ENERGY ASSISTANCE BLOCK GRANT
Local Program Expenditures
Division of Social Services
01. Low‑Income Energy Assistance Program (LIEAP) $ 14,252,199
02. Crisis Intervention Program (CIP) 33,255,130
Local Administration
Division of Social Services
03. County DSS Administration 3,263,981
DHHS Administration
04. Division of Social Services 81,765
05. Division of Mental Health 11,571
06. Office of the Secretary/DIRM 676,710
07. Office of the Secretary/Controller's Office 16,637
Transfers to Other State Agencies
Department of Commerce
08. Weatherization Program 8,733,987
09. Heating Air Repair and Replacement
Program (HARRP) 4,073,690
10. Local Residential Energy Efficiency Service
Providers Weatherization 397,929
11. Local Residential Energy Efficiency Service
Providers HARRP 185,600
12. Department of Commerce Administration
Weatherization 397,929
13. Department of Commerce Administration
HARRP 185,600
Department of Administration
14. N.C. Commission on Indian Affairs 110,638
TOTAL LOW‑INCOME HOME ENERGY ASSISTANCE
BLOCK GRANT $65,643,366
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
Local Program Expenditures
Division of Child Development
01. Subsidized Child Care Services (CCDF) $ 156,179,888
02. Electronic Tracking System 4,000,000
03. Subsidized Child Care Services
(Transfer from TANF) 79,437,674
04. Quality and Availability Initiatives
(TEACH Program $3,800,000) 26,484,816
Division of Social Services
05. Local Subsidized Child Care Services Support 12,875,201
(3% Administrative Allowance)
DHHS Administration
Division of Child Development
06. DCD Administrative Expenses 6,539,277
Division of Central Administration
07. DHHS Central Administration DIRM Technical Services 774,317
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $ 286,291,173
MENTAL HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. Mental Health Services Adult $8,870,595
02. Mental Health Services Child 5,121,991
03. Administration 100,000
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $14,092,586
SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT
Local Program Expenditures
01. Substance Abuse Services Adult $14,258,540
02. Substance Abuse Treatment Alternatives for Women 6,050,300
03. Substance Abuse Services HIV and IV Drug 5,959,934
04. Substance Abuse Prevention Child 7,186,857
05. Substance Abuse Services Child 4,940,500
06. Administration 250,000
TOTAL SUBSTANCE ABUSE PREVENTION AND TREATMENT
BLOCK GRANT $38,646,131
MATERNAL AND CHILD HEALTH BLOCK GRANT
Local Program Expenditures
Division of Public Health
01. Children's Health Services $ 7,569,221
02. Women's Health 9,163,435
03. Oral Health 42,268
DHHS Program Expenditures
Division of Public Health
04. Children's Health Services 1,417,087
05. Women's Health 136,628
06. State Center for Health Statistics 164,829
07. Quality Improvement in Public Health 2,774
08. Health Promotion 89,374
09. Office of Minority Health 41,489
DHHS Administration
Division of Public Health
10. Division of Public Health Administration 631,966
TOTAL MATERNAL AND CHILD HEALTH BLOCK GRANT $ 19,259,071
PREVENTIVE HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
Division of Public Health
01. Services to Rape Victims $ 180,470
02. HIV/STD Prevention and Community Planning 145,819
(Transfer from Social Services Block Grant)
DHHS Program Expenditures
Division of Public Health
03. Services to Rape Victims 160,000
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $ 486,289
COMMUNITY SERVICES BLOCK GRANT
Local Program Expenditures
Office of Economic Opportunity
01. Community Action Agencies $ 18,391,445
02. Limited Purpose Agencies 1,021,747
DHHS Administration
03. Office of Economic Opportunity 1,021,747
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 20,434,939
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 or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall allocate the increase proportionally across the program and activity appropriations identified for that Block Grant in this section. In allocating an increase in federal fund availability, the Office of State Budget and Management shall not approve funding for new programs or activities not appropriated in this section.
If the Congress of the United States decreases the federal fund availability for any of the Block Grants or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall develop a plan to adjust the block grants based on reduced federal funding.
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, 2013, according to the schedule enacted for State fiscal year 2012‑2013 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 or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services that are not specifically addressed in this section shall be approved by the Office of State Budget and Management, and the Office of State Budget and Management shall consult with the Joint Legislative Commission on Governmental Operations for review prior to implementing the changes. The report shall include an itemized listing of affected programs, including associated changes in budgeted allocations. All changes to the budgeted allocations to the Block Grants shall be reported immediately to the 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 or technical adjustments needed to liquidate an approved obligation from a previous or prior fiscal year.
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) FUNDS
SECTION 10.23.(a) The sum of sixty one million six hundred seventy‑one thousand two hundred ninety‑seven dollars ($61,671,297) appropriated in this section in TANF funds to the Department of Health and Human Services, Division of Social Services, for the 2012‑2013 fiscal year shall be used for Work First County Block Grants. The Division shall certify these funds in the appropriate State level services based on prior year actual expenditures. The Division has the authority to realign the authorized budget for these funds among the State‑level services based on current year actual expenditures.
SECTION 10.23.(b) The sum of two million four hundred eighty‑two thousand two hundred sixty dollars ($2,482,260) appropriated in this section in TANF funds to the Department of Health and Human Services, Division of Social Services, for the 2012‑2013 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 10.23.(c) The sum of eleven million five hundred fifty‑three thousand two hundred eighty‑four dollars ($11,553,284) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in TANF funds for the 2012‑2013 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 10.23.(d) The sum of two million twenty‑six thousand eight hundred seventy‑seven dollars ($2,026,877) appropriated in this section in TANF funds to the Department of Health and Human Services, Special Children Adoption Fund, for the 2012‑2013 fiscal year shall be used in accordance with G.S. 108A‑50.2, as enacted in Section 10.48 of S.L. 2009‑451. 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 10.23.(e) The sum of six hundred thirty‑two thousand four hundred sixteen dollars ($632,416) appropriated in this section to the Department of Health and Human Services in TANF funds for the 2012‑2013 fiscal year shall be used to continue support for the Child Welfare Collaborative.
SOCIAL SERVICES BLOCK GRANT
SECTION 10.24.(a) The sum of forty‑two million one hundred sixty thousand two hundred fifty‑two dollars ($42,160,252) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2012‑2013 fiscal year shall be used for County Block Grants. The Division shall certify these funds in the appropriate State‑level services based on prior year actual expenditures. The Division has the authority to realign the authorized budget for these funds among the State‑level services based on current year actual expenditures.
SECTION 10.24.(b) The sum of one million three hundred thousand dollars ($1,300,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2012‑2013 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 10.24.(c) 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 10.24.(d) Social Services Block Grant funds appropriated for the Special Children's Adoption Incentive Fund will require a fifty percent (50%) local match.
SECTION 10.24.(e) The sum of five million forty thousand dollars ($5,040,000) appropriated in this section in the Social Services Block Grant for the 2012‑2013 fiscal year shall be allocated to the Department of Health and Human Services, Division of Social Services. The Division shall allocate these funds to local departments of social services to replace the loss of Child Protective Services State funds that are currently used by county governments to pay for Child Protective Services staff at the local level. These funds shall be used to maintain the number of Child Protective Services workers throughout the State. These Social Services Block Grant funds shall be used to pay for salaries and related expenses only and are exempt from 10A NCAC 71R .0201(3) requiring a local match of twenty‑five percent (25%).
SECTION 10.24.(f) The sum of seventy‑five thousand dollars ($75,000) appropriated in this section in the Social Services Block Grant for the 2012‑2013 fiscal year to the Department of Health and Human Services, Division of Services for the Blind, shall be used to provide accessible electronic information for blind and disabled persons. These funds are exempt from the provisions of 10A NCAC 71R .0201(3).
LOW‑INCOME HOME ENERGY ASSISTANCE BLOCK GRANT
SECTION 10.25.(a) Additional emergency contingency funds received may be allocated for Energy Assistance Payments or Crisis Intervention Payments without prior consultation with the Joint Legislative Commission on Governmental Operations. Additional funds received shall be reported to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division upon notification of the award. The Department of Health and Human Services shall not allocate funds for any activities, including increasing administration, other than assistance payments, without prior consultation with the Joint Legislative Commission on Governmental Operations.
SECTION 10.25.(b) The sum of fourteen million two hundred fifty‑two thousand one hundred ninety‑nine dollars ($14,252,199) appropriated in this section in the Low‑Income Home Energy Assistance Block Grant for the 2012‑2013 fiscal year to the Department of Health and Human Services, Division of Social Services, shall be used for energy assistance payments for the households of (i) elderly persons age 60 and above with income up to one hundred thirty percent (130%) of the federal poverty level and (ii) disabled persons eligible for services funded through the Division of Aging and Adult Services. County departments of social services shall submit to the Division of Social Services an outreach plan for targeting households with 60‑year‑old household members no later than August 1 of each year.
MATERNAL AND CHILD HEALTH BLOCK GRANT
SECTION 10.26.(a) The sum of one million four hundred ninety‑seven thousand dollars ($1,497,000) appropriated in this section in the Maternal and Child Health Block Grant for the 2012‑2013 fiscal year to the Department of Health and Human Services, Division of Public Health, shall be used to fund the following activities as indicated:
(1) March of Dimes, to provide folic acid and education for women before pregnancy to reduce birth defects and infant mortality, the sum of three hundred fifty thousand dollars ($350,000).
(2) Teen Pregnancy Prevention, the sum of six hundred fifty thousand dollars ($650,000).
(3) Healthy Start/Safe Sleep, the sum of two hundred forty‑seven thousand dollars ($247,000).
(4) Perinatal Quality Collaborative of North Carolina, the sum of two hundred fifty thousand dollars ($250,000).
PART XI. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
PART XII. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
AMEND CLEAN WATER MANAGEMENT TRUST FUND
SECTION 12.1. Section 13.26 of S.L. 2011‑145 reads as rewritten:
"
"SECTION 13.26.(c) The funds appropriated in this act to the Clean Water Management Trust Fund shall be allocated as follows:
(1) Notwithstanding the provisions of G.S. 113A‑253(d), the sum of three million dollars ($3,000,000) shall be used for the 2011‑2012 fiscal year and for the 2012‑2013 fiscal year for the costs of administering the Clean Water Management Trust Fund, including costs to support the Board of Trustees of the Clean Water Management Trust Fund and its staff, the operating costs of the Board of Trustees of the Clean Water Management Trust Fund and its staff, and the costs of making debt payments to retire debt as provided under G.S. 113A‑253(c);
(2) Notwithstanding the provisions of G.S. 113A‑253(c) and G.S. 113A‑254, the sum of one million five hundred thousand dollars ($1,500,000) shall be used for the 2011‑2012 fiscal year and for the 2012‑2013 fiscal year for State matching funds for the Readiness and Environmental Protection Initiative and any other United States Department of Defense program that provides for military buffers and protects the overall military training mission; and
(3) The sum of six million two hundred
thousand dollars ($6,250,000) shall be used for the 2011‑2012 fiscal year
and for the 2012‑2013 fiscal year for the costs for wastewater projects,
water quality restoration projects, minigrants, conservation easements, and
stormwater projects consistent with the provisions of Article 18 of Chapter
113A of the General Statutes.
"SECTION 13.26.(d) The funds allocated
under subdivision (1) and subdivision (3) of subsection (c) of this section
shall not be used for land acquisition; however, the funds allocated under
subdivision (3) of subsection (c) of this section may be used to purchase
conservation easements. Notwithstanding the provisions of G.S. 113A‑253(c)
and G.S. 113A‑254, the funds allocated under subdivision (2) of
subsection (c) of this section may be used for land acquisition.
"SECTION 13.26.(e) Any funds that
become available to the Clean Water Management Trust Fund during the 2011‑2012
fiscal year and the 2012‑2013 fiscal year that are in excess of the funds
allocated under subsection (c) of this section for that fiscal year shall be
used as provided in subdivision (1) and subdivision (3) of subsection (c) of
this section.
"SECTION 13.26.(e2) Any funds not needed to implement subdivision (1) under subsection (c1) of this section and any other funds that become available to the Clean Water Management Trust Fund during the 2012‑2013 fiscal year may be used in accordance with G.S. 113A‑253(c)."
Clean Water State Revolving Fund
SECTION 12.2. The Department of Environment and Natural Resources may use interest earned on its loan origination fee fund to provide the twenty percent (20%) State match needed to draw down the maximum available federal funds for the Clean Water State Revolving Fund. The U.S. EPA has given the Department permission to use the interest on these funds for the State match.
Drinking Water State Revolving Fund
SECTION 12.3. Notwithstanding the provisions of Chapter 159G of the General Statutes, within the Water Infrastructure Fund established under G.S. 159G‑22, the Department of Environment and Natural Resources may transfer State funds from the Drinking Water Reserve to the Drinking Water State Revolving Fund to be used to match maximum available federal grant moneys authorized by section 1453 of the federal Safe Drinking Water Act of 1996 for the 2012‑2013 fiscal year.
PART XIII. DEPARTMENT OF COMMERCE
COMPREHENSIVE REEMPLOYMENT INITIATIVE
SECTION 13.1. There is appropriated from the Worker Training Trust Fund to the North Carolina Department of Commerce, Division of Workforce Solutions, the sum of five million dollars ($5,000,0000) for the 2012‑2013 fiscal year to fund a Comprehensive Reemployment Initiative to move unemployment insurance recipients to employment. The goal of the initiative shall be to reduce the length of time unemployed workers receive unemployment benefits, reduce the State's debt to the federal government, move the Reserve Fund toward solvency, and guide and assist benefit recipients toward employment in demand occupations. The initiative shall include requirements that:
(1) Unemployment insurance benefit recipients participate in a reemployment assessment and eligibility process shortly after their receipt of initial benefit payments.
(2) Results of the assessment be used to develop a reemployment plan for the recipient.
(3) The reemployment plan include assistance from among the following areas:
a. Intensive job search and placement services.
b. Career Readiness Certification and related training.
c. Career counseling.
d. Support for short‑term training in demand occupations at community colleges.
e. Placement in work‑based learning opportunities to include Opportunity NC, on‑the‑job training, work experience, and internships.
f. Support services to include transportation and child care assistance.
(4) Performance metrics be established and tracked to gauge effectiveness and impact.
The Department of Commerce, Division of Workforce Solutions, shall develop and implement the Reemployment Initiative in consultation with the Department of Community Colleges, the North Carolina Commission on Workforce Development, and the Department of Commerce, Division of Employment Services. Funds for the initiative may be used to maintain and expand the Opportunity NC program, administer assessment tools, including the Career Readiness Certification, support Community College 12‑in‑6 training opportunities, raise public awareness of demand occupations, and provide necessary staffing support. Other resources from State and federal funds may leverage these funds in support of this initiative, including federal Workforce Investment Act funds, federal reemployment grant funds, and State employment security reserve funds.
NER BLOCK GRANTS
SECTION 13.2.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2013, according to the following schedule:
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $ 1,275,000
02. Scattered Site Housing 13,200,000
03. Economic Development 7,596,000
04. Small Business/Entrepreneurship 1,875,000
05. NC Catalyst 10,000,000
06. Infrastructure 7,554,000
07. Capacity Building 1,000,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT 2013 Program Year $ 42,500,000
SECTION 13.2.(b) Decreases in Federal Fund Availability. If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
SECTION 13.2.(c) Increases in Federal Fund Availability for Community Development Block Grant. Any block grant funds appropriated by the Congress of the United States in addition to the funds specified in this section shall be expended as follows: each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
SECTION 13.2.(d) Limitations on Community Development Block Grant Funds. Of the funds appropriated in this section for the Community Development Block Grant, the following shall be allocated in each category for each program year: (i) up to one million two hundred seventy‑five thousand dollars ($1,275,000) may be used for State Administration; (ii) up to thirteen million two hundred thousand dollars ($13,200,000) may be used for Scattered Site Housing; (iii) up to seven million five hundred ninety‑six thousand dollars ($7,596,000) may be used for Economic Development; (iv) up to one million eight hundred seventy‑five thousand dollars ($1,875,000) may be used for Small Business/Entrepreneurship; (v) up to ten million dollars ($10,00,000) may be used for NC Catalyst; (vi) up to seven million five hundred fifty‑four thousand dollars ($7,554,000) may be used for Infrastructure; and (vii) up to one million dollars ($1,000,000) 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 13.2.(e) Increase Capacity for Nonprofit Organizations. Assistance to nonprofit organizations to increase their capacity to carry out CDBG‑eligible activities in partnership with units of local government is an eligible activity under any program category in accordance with federal regulations. Capacity building grants may be made from funds available within program categories, program income, or unobligated funds.
SECTION 13.2.(f) The Department of Commerce shall consult 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.
Increase Technical Assistance for State Community Development Block Grant Program
SECTION 13.3. There is appropriated from the CDBG Revolving Loan Fund (Budget Code 64616, Fund 6416) the sum of one million seven hundred thousand dollars ($1,700,000) to establish a Technical Assistance Fund within the Department of Commerce's Division of Community Development to help build State and local capacity to implement Community Development Block Grant (CDBG) activities. The primary purpose of the Technical Assistance Fund is to provide hands‑on assistance to local governments to increase the State's drawdown rate of CDBG funds from the U.S. Department of Housing and Urban Development (HUD). Fund uses are limited to what is allowed under section 105 (a)(19) of the Housing and Community Development Act of 1974, as amended, for the provision of technical and advisory services, including training; development and distribution of technical information; and other methods of demonstrating and making available skills, information, and knowledge to assist units of general local government in planning, developing, administering, or assessing assistance related to CDBG funding.
DEPARTMENT OF COMMERCE, EMPLOYMENT SECURITY AND UNEMPLOYMENT INSURANCE FUNDS
SECTION 13.4.(a) Funds from the Employment Security Commission Reserve Fund shall be available to the Department of Commerce to use as collateral to secure federal funds and to pay the administrative costs associated with the collection of the Employment Security Commission Reserve Fund surcharge. The total administrative costs paid with funds from the Reserve in the 2012‑2013 fiscal year shall not exceed two million five hundred thousand dollars ($2,500,000).
SECTION 13.4.(b) There is appropriated from the Employment Security Commission Reserve Fund to the Department of Commerce the sum of twenty million dollars ($20,000,000) for the 2012‑2013 fiscal year to be used for the following purposes:
(1) $19,500,000 for the operation and support of local Employment Security offices.
(2) $200,000 to operate the system that tracks former participants in State education and training programs.
(3) $300,000 to maintain compliance with Chapter 96 of the General Statutes, which directs the Department of Commerce to employ the Common Follow‑Up Management Information System to evaluate the effectiveness of the State's job training, education, and placement programs.
SECTION 13.4.(c) There is appropriated from the Employment Security Commission Reserve Fund to the Department of Commerce an amount not to exceed one million dollars ($1,000,000) for the 2012‑2013 fiscal year to fund State initiatives not currently funded through federal grants.
SECTION 13.4.(d) There is appropriated from the Worker Training Trust Fund to the Department of Commerce the sum of one million dollars ($1,000,000) for the 2012‑2013 fiscal year to fund "Opportunity NC," which provides work‑based training opportunities to recipients of unemployment insurance benefits. Opportunity NC must meet all of the following factors:
(1) The training, even though it includes actual operation of the facilities of the employer, is similar to what would be given in a vocational school or academic educational instruction.
(2) The training is for the benefit of the trainee.
(3) The trainees do not displace regular employees, but work under their close observation.
(4) The employer who provides the training derives no immediate advantage from the activities of the trainees, and, on occasion, the employer's operations may actually be impeded.
(5) The trainees are not necessarily entitled to a job at the conclusion of the training period.
(6) The employer and the trainees understand that the trainees are not entitled to wages for the time spent in training.
SECTION 13.4.(e) Of the funds credited to and held in the State of North Carolina's account in the Unemployment Trust Fund by the Secretary of the Treasury of the United States pursuant to and in accordance with section 903 of the Social Security Act and pursuant to Title II of Division B of P.L. 111‑5, the Assistance for Unemployed Workers and Struggling Families Act, the Department of Commerce may expend the sum of two hundred five million sixty‑three thousand five hundred fifty‑two dollars ($205,063,552) as follows: (i) one hundred million dollars ($100,000,000) shall be used to design and build the integrated unemployment insurance benefit and tax accounting system, and (ii) the remaining funds shall be used for the operation of the unemployment insurance program.
REGIONAL ECONOMIC DEVELOPMENT COMMISSIONS ALLOCATIONS
SECTION 13.5.(a) Funds appropriated in this act to the Department of Commerce for regional economic development commissions shall be allocated to the following commissions in accordance with subsection (b) of this section: Western North Carolina Regional Economic Development Commission, Research Triangle Regional Partnership, Southeastern North Carolina Regional Economic Development Commission, Piedmont Triad Partnership, Northeastern North Carolina Regional Economic Development Commission, North Carolina's Eastern Region Economic Development Partnership, and Carolinas Partnership, Inc.
SECTION 13.5.(b) Funds appropriated pursuant to subsection (a) of this section shall be allocated to each regional economic development commission as follows:
(1) First, the Department shall establish each commission's allocation by determining the sum of allocations to each county that is a member of that commission. Each county's allocation shall be determined by dividing the county's development factor by the sum of the development factors for eligible counties and multiplying the resulting percentage by the amount of the appropriation. As used in this subdivision, the term "development factor" means a county's development factor as calculated under G.S. 143B‑437.08; and
(2) Next, the Department shall subtract from funds allocated to the North Carolina's Eastern Region Economic Development Partnership the sum of one hundred seventy‑four thousand eight hundred ninety dollars ($174,890) in the 2012‑2013 fiscal year, which sum represents (i) the total interest earnings in the prior fiscal year on the estimated balance of the seven million five hundred thousand dollars ($7,500,000) appropriated to the Global TransPark Development Zone in Section 6 of Chapter 561 of the 1993 Session Laws and (ii) the total interest earnings in the prior fiscal year on loans made from the seven million five hundred thousand dollars ($7,500,000) appropriated to the Global TransPark Development Zone in Section 6 of Chapter 561 of the 1993 Session Laws; and
(3) Next, the Department shall redistribute the sum of one hundred seventy‑four thousand eight hundred ninety dollars ($174,890) in the 2012‑2013 fiscal year to the seven regional economic development commissions named in subsection (a) of this section. Each commission's share of this redistribution shall be determined according to the development factor formula set out in subdivision (1) of this subsection. This redistribution shall be in addition to each commission's allocation determined under subdivision (1) of this subsection.
SECTION 13.5.(c) No more than one hundred thousand dollars ($100,000) in State funds shall be used for the annual salary of any one employee of a regional economic development commission.
USE OF TVA SETTLEMENT FUNDS
SECTION 13.6 Funds received by the State pursuant to the provisions of paragraphs 122‑128 inclusive of the Consent Decree entered into by the State in State of Alabama et al. v. Tennessee Valley Authority, Civil Action 3:11‑cv‑00170 in the United States District Court for the Eastern District of Tennessee are appropriated to the Department of Commerce. These funds, eleven million two hundred thousand dollars ($11,200,000) in all and expected to total approximately two million dollars ($2,000,000) annually for a period of five years, shall be used exclusively to award grants for "Environmental Mitigation Projects" of the types specified in the Consent Decree. The Secretary of Commerce shall develop a competitive grant application process and guidelines in consultation with the Energy Policy Council, and may make awards to local government agencies and nonprofits. The process shall include best efforts to identify and a nonexclusive preference to fund projects located in TVA's power service area or the Tennessee River watershed in Western North Carolina as provided in paragraph 125 of the Consent Decree. Beginning October 1, 2012, and annually thereafter until the funds are expended, the Department of Commerce shall submit a report to the Office of State Budget and Management and the Fiscal Research Division containing the following information about each grant awarded: (i) the name and location of the grant recipient; (ii) a description of the project; (iii) the purpose of the grant award under the Consent Decree; (iv) the performance period of the grant award; and (v) the amount of funds awarded.
ENERGY EFFICIENT VALUATION
SECTION 13.7.(a) Effective July 1, 2015, Chapter 93E of the General Statutes is amended by adding a new section to read:
"§ 93E‑1‑15. Green or energy efficient valuation in residential properties.
All licensed appraisers in North Carolina shall use the Appraisal Institute Form 820.03: Residential Green and Energy Efficient Addendum to value green or energy efficient features in residential properties."
SECTION 13.7.(b) The Department of Commerce, North Carolina Energy Office, may, from funds available to the Office, use up to two hundred thousand dollars ($200,000) in 2012‑2013 fiscal year for mini‑grants for training of realtors and appraisers on how to value energy consumption reduction features in buildings as well as to update MLS systems in the State to capture the energy efficient data of a house.
INCREASE JDIG FEES
SECTION 13.8.(a) G.S. 143B‑435.55(b) reads as rewritten::
"(b) Application Fee. When filing an application
under this section, the business must pay the Committee a fee of five
thousand dollars ($5,000). seven thousand five hundred dollars ($7,500).
The fee is due at the time the application is filed. The Secretary of
Commerce, the Secretary of Revenue, and the Director of the Office of State
Budget and Management shall determine the allocation of the fee imposed by this
section among their agencies. The proceeds of the fee are receipts of the
agency to which they are credited."
SECTION 13.8.(b) G.S. 143B‑437.58(a) reads as rewritten:
"(a) No later than March 1 of each year, for the
preceding grant year, every business that is awarded a grant under this Part
shall submit to the Committee an annual payroll report showing withholdings as
a condition of its continuation in the grant program and identifying eligible
positions that have been created during the base period that remain filled at
the end of each year of the grant. Annual reports submitted to the Committee
shall include social security numbers of individual employees identified in the
reports. Upon request of the Committee, the business shall also submit a copy
of its State and federal tax returns. Payroll and tax information, including
social security numbers of individual employees and State and federal tax
returns, submitted under this subsection is tax information subject to G.S. 105‑259.
Aggregated payroll or withholding tax information submitted or derived under
this subsection is not tax information subject to G.S. 105‑259. When
making a submission under this section, the business must pay the Committee a
fee of one thousand five hundred dollars ($1,500). two thousand five
hundred dollars ($2,500). The fee is due at the time the submission is
made. The Secretary of Commerce, the Secretary of Revenue, and the Director of
the Office of State Budget and Management shall determine the allocation of the
fee imposed by this section among their agencies. The proceeds of the fee are
receipts of the agency to which they are credited."
ONE NORTH CAROLINA FUND
SECTION 13.9. Of the funds appropriated in this act to the One North Carolina Fund for the 2012‑2013 fiscal year, the Department of Commerce may use up to two hundred fifty thousand dollars ($250,000) to cover its expenses in administering the One North Carolina Fund and other economic development incentive grant programs during the 2012‑2013 fiscal year. The Department of Commerce shall not use more than two hundred fifty thousand dollars ($250,000) for administrative costs in any one fiscal year.
NORTH CAROLINA BIOTECHNOLOGY CENTER
SECTION 13.10. Section 14.15 of S.L. 2011‑145 reads as rewritten:
"SECTION 14.15.(a) Of the funds appropriated in
this act to the North Carolina Biotechnology Center (Center), the sum of seventeen
million five hundred fifty‑one thousand seven hundred ten dollars ($17,551,710)
eighteen million seventy‑six thousand seven hundred ten dollars
($18,076,710) for each fiscal year in the 2011‑2013 biennium the
2012‑2013 fiscal year shall be allocated as follows:
(1) Job Creation: Ag Biotech Initiative, Economic and
Industrial Development, Regional Offices and Statewide Development, and related
activities $3,779,721;$4,079,721.
(2) Science and Commercialization: Science and
Technology Development, Centers of Innovation, Business and Technology
Development, Education and Training, and related activities $11,360,700;
and$11,580,700.
(3) Center Operations: Administration, Professional and Technical Assistance and Oversight, Corporate Communications, Human Resource Management, Financial and Grant Administration, Legal, and Accounting $2,411,289.
"SECTION 14.15.(b) Except to provide administrative flexibility, up to ten percent (10%) of each of the allocations in subsection (a) of this section may be reallocated to one or more of the other allocations in subsection (a) of this section if, in the judgment of Center management, the reallocation will advance the mission of the Center.
"SECTION 14.15.(c) The Center shall comply with the following reporting requirements:
(1) By September 1 of each year, and more frequently as
requested, report to the Joint Legislative Commission on Governmental
Operations and the Fiscal Research Division Division, and the Office
of State Budget and Management on prior State fiscal year program
activities, objectives, and accomplishments and prior State fiscal year
itemized expenditures and fund sources.
(2) Provide to the Fiscal Research Division a copy of the Center's annual audited financial statement within 30 days of issuance of the statement.
"SECTION 14.15.(d) Remaining allotments after September 1 shall not be released to the Center if it does not satisfy the reporting requirements provided in subsection (b) of this section.
"SECTION 14.15.(e) Beginning in fiscal year 2012‑2013, no more than one hundred twenty thousand dollars ($120,000) in State funds shall be used for the annual salary of any one employee of the Center."
RURAL ECONOMIC DEVELOPMENT CENTER/INFRASTRUCTURE PROGRAM
SECTION 13.11. Of the funds appropriated in this act to the North Carolina Rural Economic Development Center, Inc., the sum of five million dollars ($5,000,000) for the 2012‑2013 fiscal year shall be used to provide grant funding for critically needed water and wastewater projects located in rural counties and to fund crisis projects in which a public drinking water supply is contaminated with pollutants that constitute an acute health hazard or a public drinking water supply is facing the loss of its water supply due to the depletion of ground water or surface water sources.
RURAL CENTER/RURAL JOBS FUND
SECTION 13.12. Section 14.20 of S.L. 2011‑145 reads as rewritten:
"SECTION 14.20.(a) Appropriation. There is
appropriated from the General Fund to the North Carolina Rural Economic
Development Center, Inc., (Rural Center) the sum of five million dollars
($5,000,000) twenty million dollars ($20,000,000) for the 2011‑2012
fiscal year in nonrecurring funds and the sum of five million dollars
($5,000,000) for the 2012‑2013 fiscal year in nonrecurring funds to be
used to provide grants to local government units for infrastructure needs as
provided in this section.
"SECTION 14.20.(i) Reports. By
September 1 of each year, and more frequently as requested, the Rural Center
shall report to the Joint Legislative Commission on Governmental Operations
and Operations, the Fiscal Research Division Division, and
the Office of State Budget and Management concerning the progress of the
emergency Rural Jobs Infrastructure Grant program created under the provisions
of this section."
INDUSTRIAL COMMISSION STATUTORY CHANGES
SECTION 13.13.(a) G.S. 58‑36‑16 reads as rewritten:
"§ 58‑36‑16. Bureau to share information with Department of Labor.
The Bureau shall provide to the Department of Labor and
the North Carolina Industrial Commission information from the Bureau's
records indicating each employer's experience rate modifier established for the
purpose of setting premium rates for workers' compensation insurance and the
name and business address of each employer whose workers' compensation coverage
is provided through the assigned‑risk pool pursuant to G.S. 58‑36‑1.
Information provided to the Department of Labor and the North Carolina
Industrial Commission with respect to experience rate modifiers shall
include the name of the employer and the employer's most current intrastate or
interstate experience rate modifier. The information provided to the Department
and Commission under this section shall be confidential and not open for
public inspection. The Bureau shall be immune from civil liability for
erroneous information released by the Bureau pursuant to this section, provided
that the Bureau acted in good faith and without malicious or wilful willful
intent to harm in releasing the erroneous information."
SECTION 13.13.(b) Article 36 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58‑36‑16.1. Additional information to be shared with the North Carolina Industrial Commission.
The Bureau shall provide to the North Carolina Industrial Commission, from the Bureau's records, each employer's name, business address, phone number, and all subsidiaries thereof which have workers' compensation policies provided through the assigned risk pool pursuant to G.S. 58‑36‑1 or which voluntarily provide the above listed information by means other than the assigned risk pool. Workers' compensation policy information provided to the North Carolina Industrial Commission shall include the name of each employer's workers' compensation carrier, third‑party administrator, self‑insured fund, or Professional Employer Organization (PEO). Policy information shall also include the employer's workers' compensation policy number, Federal Employer Identification Number (FEIN), Employer Identification Number (EIN) policy effective dates, including initiation, expiration, reinstatement, cancellation dates, and all endorsements and renewals. The information provided to the North Carolina Industrial Commission under this section shall be confidential and not open for public inspection. The Bureau shall be immune from civil liability for erroneous information released by the Bureau pursuant to this section, provided that the Bureau acted in good faith and without malicious or willful intent to harm in releasing the erroneous information."
PART XIV. DEPARTMENT OF CULTURAL RESOURCES
RECEIPTS FROM PRIVATE DONATIONS ADDED TO SPECIAL REVENUE FUND
SECTION 14.1. G.S. 121‑7.7(a) reads as rewritten:
"§ 121‑7.7. State Historic Sites and Museums special fund.
(a) Fund. The State Historic Sites and Museums Fund
is created as a special, interest‑bearing revenue fund in the Division of
State Historic Sites. Sites and the Division of State History
Museums. The Fund consists of all receipts derived from the lease or rental
of property or facilities, disposition of structures or products of the land, private
donations, and admissions and fees collected at the State Historic Sites.
Sites and State History and Maritime Museums. The revenues in the
Fund may be used only for the operation, interpretation, maintenance,
preservation, development, and expansion of the individual State Historic Site and
Museum where the receipts are generated. The Division and the staff from
each State Historic Site and Museum will determine how the funds will be
used at that Historic Site."
PART XV. JUDICIAL DEPARTMENT
COLLECTION OF WORTHLESS CHECK FUNDS
SECTION 15.1. Section 15.4 of S.L. 2011‑145 reads as rewritten:
PART XVI. DEPARTMENT OF JUSTICE
PART XVII. Department of Public Safety
TECHNICAL REVOCATION CENTER STUDY
SECTION 17.1. The Department of Public Safety, Adult Correction Division, shall study the feasibility of creating a Technical Violation Center (Center) to house probationers ordered to serve a period of 90 days in confinement due to a technical violation of the condition of their probation. The study would determine the feasibility and cost‑effectiveness of using a Center operated by Community Corrections for confinements resulting from technical corrections rather than placing the probationers in State prisons. The Department shall report its findings and recommendations to the Office of State Budget and Management and the Joint Appropriations Subcommittee for Justice and Public Safety no later than January 1, 2013.
STATE FUNDS MAY BE USED AS FEDERAL MATCHING FUNDS
SECTION 17.2. Section 17.1 of S.L. 2011‑145 reads as rewritten:
"SECTION 17.1. Funds appropriated in this act to
the Department of Juvenile Justice and Delinquency Prevention Department
of Public Safety, Division of Juvenile Justice, for the 2011‑2012 2012‑2013
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 Department
of Public Safety, Division of Juvenile Justice, 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 Department of Public Safety, Division of Juvenile Justice, 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 2011‑2012 2012‑2013 fiscal
year, the amount of funds anticipated for the 2012‑2013 2013‑2014
fiscal year, and the allocation of funds by program and purpose."
JUVENILE CRIME PREVENTION COUNCIL FUNDS
SECTION 17.3.(a) Section 17.4 of S.L. 2011‑145 reads as rewritten:
"SECTION 17.4.(a) On or before October 1 of each
year, the Department of Juvenile Justice and Delinquency Prevention Department
of Public Safety, Division of Juvenile Justice, shall submit to the Joint
Legislative Commission on Governmental Operations and the Appropriations
Committees of the Senate and House of Representatives a list of the recipients
of the grants awarded, or preapproved for award, from funds appropriated to the
Department for local Juvenile Crime Prevention Council (JCPC) grants, including
the following:
(1) The amount of the grant awarded.
(2) The membership of the local committee or council administering the award funds on the local level.
(3) The type of program funded.
(4) A short description of the local services, programs, or projects that will receive funds.
(5) Identification of any programs that received grant funds at one time but for which funding has been eliminated by the Department.
(6) The number of at‑risk, diverted, and adjudicated juveniles served by each county.
(7) The Department's actions to ensure that county JCPCs prioritize funding for dispositions of intermediate and community‑level sanctions for court‑adjudicated juveniles under minimum standards adopted by the Department.
(8) The total cost for each funded program, including the cost per juvenile and the essential elements of the program.
An electronic copy of the list and other information regarding the projects shall also be sent to the Fiscal Research Division of the General Assembly.
"SECTION 17.4.(b) Of the funds appropriated by
this act for the 2011‑2012 2012‑2013 fiscal year to
the Department of Juvenile Justice and Delinquency Prevention Department
of Public Safety, Division of Juvenile Justice, for Juvenile Crime
Prevention Council grants, the sum of one hundred twenty‑one thousand six
hundred dollars ($121,600) shall be transferred to Project Challenge North
Carolina, Inc., to be used for the continued support of Project Challenge
programs throughout the State."
PART XVIII. DEPARTMENT OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION
pART XIX. DEPARTMENT OF CORRECTION
PART XX. DEPARTMENT OF ADMINISTRATION
STERILIZATION VICTIMS COMPENSATION
SECTION 20.1. The Justice for Sterilization Victims Foundation (JSVF) is continued through June 30, 2017, in the Department of Administration for the purposes of verifying the victims who were sterilized by the State Eugenics Board; for safeguarding the victims' records; for administering the program to grant compensation as established by the State; for overseeing the design and development of an outreach program to ensure victims are made aware of the compensation program and that other citizens learn about the history of the former eugenics program to ensure no future State‑sponsored program will happen again; and, finally, for assessing and designing a method to ensure mental health and supportive services are available to the victims.
AMEND ADVISORY COMMISSION ON MILITARY AFFAIRS
SECTION 20.2. G.S. 127C‑2 reads as rewritten:
"§ 127C‑2. Membership.
(a) The North Carolina Advisory Commission on Military
Affairs shall consist of 21 voting members, who shall serve on the Executive
Committee, and 17 21 nonvoting, ex officio members who shall
serve by reason of their positions.
(b) The Executive Committee shall be appointed as follows:
(1) Three members appointed by the Speaker of the House of Representatives, one of whom shall be a member of a recognized veterans' organization.
(2) Three members appointed by the President Pro Tempore of the Senate, one of whom shall be a member of a recognized veterans' organization.
(3) Fifteen members appointed by the Governor, consisting of:
a. Three representatives from the Jacksonville community.
b. Three representatives from the Havelock community.
c. Three representatives from the Goldsboro community.
d. Three representatives from the Fayetteville community.
e. Three public members from across the State.
(c) The following members, or their designee, shall serve ex officio:
(1) The Lieutenant Governor.
(1a) Secretary of Public Safety.
(2) Secretary of Commerce.
(2a) The Secretary of Transportation.
(2b) The Secretary of the Department of Environment and Natural Resources.
(2c) The Commissioner of Agriculture.
(3) Commanding General 18th Airborne Corps, Garrison
Commander Fort Bragg.
(4) Commanding General Marine Corps Base, Camp Lejeune.Lejeune
and Marine Corps Installations East.
(5) Commanding General Marine Corps Air Station,
Cherry Point.
(6) Commander 4th FW, Seymour Johnson Air Force Base.
(7) Commander 43rd Airlift Wing, Pope Air Force
Base.Commanding Officer, Marine Corps Air Station New River.
(8) Commander of the U.S. Coast Guard Support Center, Elizabeth City.
(9) Adjutant General of the North Carolina National Guard.
(10) The Executive Director of the North Carolina League of Municipalities.
(11) The Executive Director of the North Carolina Association of County Commissioners.
(12) The Assistant Secretary for Veterans Affairs, Department of Administration.
(13) The President of The University of North Carolina.
(14) The President of the North Carolina Community College System.
(15) Commander, U.S. Coast Guard Sector North Carolina.
(16) Commanding Officer, Military Ocean Terminal Sunny Point.
(17) Commander, U.S. Army Corps of Engineers, Wilmington District.
(d) The Governor shall designate one member of the Executive Committee appointed pursuant to subsection (b) of this section to serve as chair. The Executive Committee shall elect four persons from amongst its membership to serve as vice‑chairs.
(e) The terms of the members of the Executive Committee shall be as follows:
(1) The members initially appointed by the Speaker of the House of Representatives and the President Pro Tempore of the Senate shall serve terms ending on December 31, 2003.
(2) Seven of the members appointed by the Governor shall serve initial terms ending on December 31, 2002.
(3) Eight of the members appointed by the Governor shall serve initial terms ending on December 31, 2003.
Thereafter, all members shall serve two‑year terms."
PART XXI. DEPARTMENT OF INSURANCE
SECTION 21.1. G.S. 58‑2‑215(c) reads as rewritten:
"(c) Moneys appropriated by the General
Assembly shall be deposited in the Fund and shall become a part of the
continuation budget of the Department of Insurance. Such continuation budget
amount shall equal the actual expenditures drawn from the Fund during the prior
fiscal year plus the official inflation rate designated by the Director of the
Budget in the preparation of the State Budget for each ensuing fiscal year;
provided that if interest income on the Fund exceeds the amount yielded by the
application of the official inflation rate, such continuation budget amount
shall be the actual expenditures drawn from the Fund, except that the
appropriation for the 1995‑96 fiscal year shall not exceed the sum of
seven hundred fifty thousand dollars ($750,000) and for the 1996‑97
fiscal year shall not exceed the sum of two hundred fifty thousand dollars
($250,000). In the event the amount in the Fund exceeds two hundred fifty
thousand dollars ($250,000) at the end of any fiscal year, beginning with the
1995‑96 fiscal year, such excess shall revert to the General Fund."
(c) Moneys appropriated by the General Assembly shall be deposited in the Fund and shall become a part of the continuation budget of the Department of Insurance, and no unexpended surplus shall revert to the General Fund."
SECTION 21.2. Section 7 of S.L. 2009‑474 reads as rewritten:
"SECTION 7. The Department of Insurance shall
transfer to the Department of Administration four building code review
positions selected by the Department of Administration for the purpose of
assisting the Department of Administration in administering G.S. 143‑341(3)
and G.S. 143‑139(e). These positions shall be supported by the
Insurance Regulatory Fund at one hundred percent (100%) of the full budgeted
amount for each position from fiscal year 2009‑2010 through fiscal year
2011‑2012. Beginning fiscal year 2012‑2013, the State Treasurer,
as custodian of the State Property Fire Insurance Fund, shall support those
positions out of the State Property Fire Insurance Fund. Beginning
fiscal year 2012‑2013, these positions shall remain supported by the
Insurance Regulatory Fund at one hundred percent (100%) of the full budgeted
amount for each position for fiscal year 2011‑2012."
PART XXII. DEPARTMENT OF REVENUE
TAX INFORMATION MANAGEMENT SYSTEM/ADDITIONAL PUBLIC‑PRIVATE PARTNERSHIP AUTHORIZED
SECTION 22.1.(a) Additional Public‑Private Partnership. The Secretary of the Department of Revenue (Secretary) may enter into an additional public‑private arrangement in order to expand the implementation of the Tax Information Management System (TIMS). The public‑private arrangement may include terms necessary to implement additional revenue‑increasing or cost‑saving components, if all of the following conditions are met:
(1) The funding of the project under the arrangement comes from revenue generated by or cost‑savings resulting from the project.
(2) The funding of the project is dependent on increased‑revenue or cost‑savings streams that are different from the existing benefits stream for the implementation of TIMS.
(3) The project involves additional identified initiatives that will be integrated into the TIMS solution.
All public‑private partnership arrangements related to TIMS shall terminate by no later than June 30, 2018.
SECTION 22.1.(b) Contracts. Work under the additional public‑private arrangement authorized by this section may be contracted by requests for proposals, modifications to the existing contracts, purchases using existing contracts, or other related contract vehicles.
SECTION 22.1.(c) Management/Performance Measurement. The Secretary shall follow the existing model for public‑private arrangement oversight. The Secretary shall establish a measurement process to determine the increased revenue or cost savings attributed to the additional public‑private arrangement authorized by this section. To accomplish this, the Secretary shall consult subject matter experts in the Department of Revenue, in other governmental units, and in the private sector, as necessary. At a minimum, the measurement process shall include all of the following:
(1) Calculation of a revenue baseline against which the increased revenue attributable to the project is measured and a cost‑basis baseline against which the cost savings resulting from the project are measured.
(2) Periodic evaluation to determine if the baselines need to be modified based on significant measurable changes in the economic environment.
(3) Monthly calculation of increased revenue and cost‑savings attributable to contracts executed under this section.
SECTION 22.1.(d) Funding. Of funds generated from increased revenues or cost‑savings as compared to the baselines in the General Fund, the Highway Fund, and that State portion of the Unauthorized Substance Tax collections of the Special Revenue Fund, the sum of sixteen million dollars ($16,000,000) is appropriated for the 2012‑2013 fiscal year from funds generated from increased revenues or cost savings as compared to the baselines established by subdivision (1) of subsection (c) of this section. This amount includes payment for services from non‑State entities. The funds appropriated by this subsection shall fund purchases to the implementation of the additional public‑private arrangement authorized by this section. The funds appropriated by this subsection are subject to the provisions of G.S. 143C‑1‑2(b)(iii).
SECTION 22.1.(e) Internal Costs. For the 2012‑2013 fiscal year, in addition to the funding authorized in Section 6A.5(a) of S.L. 2011‑145 and by subsection (d) of this section, the Department of Revenue may retain an additional sum of ten million two hundred twenty‑eight thousand dollars ($10,228,000), which amount is hereby appropriated from benefits generated for the General Fund since the beginning of the public‑private partnership authorized under Section 6A.5(a) of S.L. 2011‑145. These funds shall be used as payment of the Department's internal costs for the 2011‑2013 fiscal biennium.
SECTION 22.1.(f) Expert Counsel Required. Notwithstanding G.S. 114‑2.3, the Department of Revenue shall engage the services of private counsel having the pertinent information technology and computer law expertise to negotiate and review contracts associated with the additional public‑private arrangement authorized by this section.
SECTION 22.1.(g) Oversight Committee. The Oversight Committee established under Section 6A.5(c) of S.L. 2011‑145 is vested with the same responsibilities and duties with respect to the additional public‑private arrangement authorized by this section that it has with respect to public‑private arrangements to implement TIMS and the additional PDP components.
SECTION 22.1.(h) Reporting. Beginning August 1, 2012, and quarterly thereafter, the Department of Revenue shall submit detailed written reports to the Chairs of the House of Representatives and Senate Committees on Appropriations, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division of the General Assembly. The report shall include an explanation of all of the following:
(1) Details of each public‑private contract.
(2) The benefits from each contract.
(3) A comprehensive forecast of the benefits of using public‑private agreements to implement TIMS, the additional PDP components, and additional components authorized by this section, including cost savings and the acceleration of the project time line.
(4) Any issues associated with the operation of the public‑private partnership.
SECTION 22.1.(i) IT Project Oversight. In addition to the oversight provided by the Oversight Committee established in Section 6A.5(c) of S.L. 2011‑145, the additional public‑private arrangement authorized by this section shall be subject to existing State information technology project oversight laws and statutes, and the project management shall comply with all statutory requirements and other criteria established by the State Chief Information Officer and the Office of State Budget and Management for information technology projects. The State Chief Information Officer and the Office of State Budget and Management shall immediately report any failure to do so to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the House of Representatives and Senate Committees on Appropriations, and the Fiscal Research Division.
SECTION 22.2. Extension. Section 6A.5(c) of S.L. 2011‑145 reads as rewritten:
"SECTION 6A.5.(c) There is established within the Department of Revenue the Oversight Committee for reviewing and approving the benefits measurement methodology and calculation process. The Oversight Committee shall review and approve in writing all contracts, including change orders, amendments to contracts, and addendums to contracts, before they are executed under this section. This shall include (i) details of each public‑private contract, (ii) the benefits from each contract, and (iii) a comprehensive forecast of the benefits of using public‑private agreements to implement TIMS and the additional PDP components, including the measurement process established for the Secretary of Revenue. The Oversight Committee shall approve all of the fund transfers for this project. Within five days of entering into a contract, the Department shall provide copies of each contract and all associated information to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the House of Representatives and Senate Committees on Appropriations, and the Fiscal Research Division.
The members of the Committee shall include the following:
(1) The State Budget Director;
(2) The Secretary of the Department of Revenue;
(3) The State Chief Information Officer;
(4) Two persons appointed by the Governor;
(5) One member of the general public having expertise in information technology appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives; and
(6) One member of the general public having expertise in economic and revenue forecasting appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate.
The State Budget Director shall serve as chair of the
Committee. The Committee shall set its meeting schedule and adopt its rules of
operation by majority vote. A majority of the members constitutes a quorum.
Vacancies shall be filled by the appointing authority. Administrative support
staff shall be provided by the Department of Revenue. Members of the Committee
shall receive reimbursements for subsistence and travel expenses as provided by
Chapter 138 of the General Statutes. The Committee shall terminate on June 30, 2015.2018."
SECTION 22.3. One‑Time Payment. To accelerate the implementation of the Tax Information Management System, including any additional components authorized by Section 22.1 of this act, the Office of State Budget and Management may authorize the Secretary to make a one‑time payment of two million dollars ($2,000,000) to the vendor of TIMS for implementation of TIMS, but only if all of the conditions of this subsection are satisfied. The one‑time payment shall be paid within 90 days of satisfaction of all conditions of this section or when sufficient funds are available, whichever is later. The source of funds for this payment is the same increased‑revenue and cost‑savings streams identified under Section 22.1 of this act. The payment authorized by this section is in addition to the payment authorized by Section 22.1(d) of this act. The three conditions precedent required for the one‑time payment authorized by this subsection include all of the following:
(1) Release 5 of the Enterprise Technology Management (ETM) project is initially implemented on or before July 31, 2013.
(2) The post‑implementation defect rate for Release 5 of the ETM project is within standards agreed to by the Secretary and the vendor. For purposes of this section, the post‑implementation period is the period from the date of initial implementation until 90 days after the initial implementation date.
(3) All defects identified as part of Release 5 of the ETM project before the end of the post‑implementation period are resolved within time frames agreed to by the Secretary and the vendor.
PART XXIII. OFFICE OF STATE BUDGET AND MANAGEMENT
SECTION 23.1. Section 27A.1 of S.L. 2010‑31, reads as rewritten:
"MILITARY MORALE AND WELFARE FUND
"SECTION
27A.1.(a) Of the funds appropriated to the Office of State Budget and
Management, the sum of five hundred thousand dollars ($500,000) for the 2010‑2011
2012‑2013 fiscal year shall be placed in a Reserve for the
Military Morale, Recreation, and Welfare Fund.
"SECTION 27A.1.(b) The Office of State Budget and Management shall distribute for the purposes described in this section the amount appropriated by subsection (a) of this section. That amount shall be distributed to each military installation on a per capita basis.
"SECTION 27A.1.(c) Funds distributed to a military installation exchange under this section must be deposited in the Military Morale, Recreation, and Welfare Fund for that installation and used only for community services and other expenditures to improve quality of life programs for military members and their families in North Carolina.
"SECTION 27A.1.(d) Beginning
with the 2010‑2011 2012‑2013 fiscal year, each
military installation shall report at least annually on the allocation and use
of the funding to the Joint Legislative Commission on Governmental Operations."
PART XXIV. OFFICE OF THE GOVERNOR
PART XXV. STATE BOARD OF ELECTIONS
APPROPRIATE MAINTENANCE OF EFFORT FUNDS TO ACCESS HAVA TITLE II FUNDS
SECTION 25.1.(a) The State Board of Elections shall expend Help America Vote Funds (HAVA) Title II Funds for the 2012‑2013 fiscal year with appropriation of the State's required Maintenance of Effort funds in the amount of six hundred sixty-three thousand nine hundred thirty-six dollars ($663,936).
SECTION 25.1.(b) Section 28.1 of S.L. 2011‑145 is repealed.
PART XXVI. DEPARTMENT OF TRANSPORTATION
REPEAL FERRY TOLLS
SECTION 26.1.(a) Effective April 1, 2012, G.S. 136‑82 reads as rewritten:
"§ 136‑82. (Effective April 1, 2012) Department of Transportation to establish and maintain ferries.
The Department of Transportation is vested with authority to
provide for the establishment and maintenance of ferries connecting the parts
of the State highway system, whenever in its discretion the public good may so
require, and to prescribe and collect such tolls therefor as may, in the
discretion of the Department of Transportation, be expedient. The Board of
Transportation shall establish tolls for all ferry routes, except for the
Ocracoke/Hatteras Ferry and the Knotts Island Ferry.
To accomplish the purpose of this section said Department of Transportation is authorized to acquire, own, lease, charter or otherwise control all necessary vessels, boats, terminals or other facilities required for the proper operation of such ferries or to enter into contracts with persons, firms or corporations for the operation thereof and to pay therefor such reasonable sums as may in the opinion of said Department of Transportation represent the fair value of the public service rendered.
The Department of Transportation, notwithstanding any other provision of law, may operate, or contract for the operation of, concessions on the ferries and at ferry facilities to provide to passengers on the ferries food, drink, and other refreshments, personal comfort items, and souvenirs publicizing the ferry system."
SECTION 26.1.(b) Section 31.30(b) of S.L. 2011‑145 is repealed.
CAP GAS TAX
SECTION 26.2. Effective July 1, 2012, G.S. 105‑449.80 reads as rewritten:
"§ 105‑449.80. Tax rate.
(a) Rate. The motor fuel excise tax rate is a flat
rate of seventeen and one‑half cents (17 1/2’) a gallon plus a variable
wholesale component. The variable wholesale component is either three and
one‑half cents (3 1/2’) a gallon or seven percent (7%) of the average
wholesale price of motor fuel for the applicable base period, whichever is greater.shall
not exceed twenty cents (20’) a gallon for the period July 1, 2012, through
June 30, 2013.
The two base periods are six‑month periods; one ends on September 30 and one ends on March 31. The Secretary must set the tax rate twice a year based on the wholesale price for each base period. A tax rate set by the Secretary using information for the base period that ends on September 30 applies to the six‑month period that begins the following January 1. A tax rate set by the Secretary using information for the base period that ends on March 31 applies to the six‑month period that begins the following July 1.
(b) Wholesale Price. The Secretary must determine the average wholesale price of motor fuel for each base period. To do this, the Secretary must use information on refiner and gas plant operator sales prices of finished motor gasoline and No. 2 diesel fuel for resale, published by the United States Department of Energy in the "Monthly Energy Review", or equivalent data.
The Secretary must compute the average sales price of finished motor gasoline for the base period, compute the average sales price for No. 2 diesel fuel for the base period, and then compute a weighted average of the results of the first two computations based on the proportion of tax collected on each under this Article for the base period. The Secretary must then convert the weighted average price to a cents‑per‑gallon rate and round the rate to the nearest one‑tenth of a cent (1/10’). If the converted cents‑per‑gallon rate is exactly between two‑tenths of a cent (2/10’) the Secretary must round the rate up to the higher of the two.
(c) Notification. The Secretary must notify affected taxpayers of the tax rate to be in effect for each six‑month period beginning January 1 and July 1."
LEAKING PETROLEUM UNDERGROUND STORAGE TANK CLEANUP FUNDS
SECTION 26.3. Effective July 1, 2012, G.S. 119‑18(b) reads as rewritten:
"(b) Proceeds. The proceeds of the inspection tax
levied by this section shall be applied first to the costs of administering
this Article and Subchapter V of Chapter 105 of the General Statutes. The
remainder of the proceeds shall be credited on a monthly basis to the Highway
Fund to be used for system preservation under the Department of Transportation
in the highway maintenance program.Commercial Leaking Petroleum
Underground Storage Tank Cleanup Fund and the Noncommercial Leaking Petroleum
Underground Storage Tank Cleanup Fund. If the amount of revenue in the
Noncommercial Fund at the end of a month is at least five million dollars
($5,000,000), one‑half of the remainder of the proceeds shall be credited
to the Noncommercial Fund and one‑half of the remainder of the proceeds
shall be credited to the Commercial Fund. If the amount of revenue in the
Noncommercial Fund at the end of a month is less than this threshold amount,
all of the remainder of the proceeds shall be credited to the Noncommercial
Fund."
RESTORE MOBILITY FUND
SECTION 26.4. Subsections 28.33(c) and (d) of S.L. 2011‑145 are repealed.
PART xxVII. SALARIES AND BENEFITS
SECTION 27.1.(a) Effective July 1, 2012, G.S. 147‑11(a) reads as rewritten:
"(a) The salary of the Governor shall be one
hundred thirty‑nine thousand five hundred ninety dollars ($139,590) one
hundred forty‑two thousand one hundred three dollars ($142,103) annually,
payable monthly."
SECTION 27.1.(b) Effective July 1, 2012, the annual salaries for the members of the Council of State, payable monthly, for the 2012‑2013 fiscal year are:
Council of State Annual Salary
Lieutenant Governor $125,416
Attorney General 125,416
Secretary of State 125,416
State Treasurer 125,416
State Auditor 125,416
Superintendent of Public Instruction 125,416
Agriculture Commissioner 125,416
Insurance Commissioner 125,416
Labor Commissioner 125,416
SECTION 27.2.(a) Effective July 1, 2012, the salaries set by G.S. 143B‑9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal State departments for the 2012‑2013 fiscal year are:
Nonelected Department Heads Annual Salary
Secretary of Administration $122,530
Secretary of Correction 122,530
Secretary of Crime Control and Public Safety 122,530
Secretary of Cultural Resources 122,530
Secretary of Commerce 122,530
Secretary of Environment and Natural Resources 122,530
Secretary of Health and Human Services 122,530
Secretary of Juvenile Justice and
Delinquency Prevention 122,530
Secretary of Revenue 122,530
Secretary of Transportation 122,530
SECTION 27.2.(b) Effective July 1, 2012, subsection (a) of this section reads as rewritten:
"SECTION 27.2.(a) Effective July 1, 2012, the salaries set by G.S. 143B‑9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal State departments for the 2012‑2013 fiscal year are:
Nonelected Department Heads Annual Salary
Secretary of Administration $122,530
Secretary of Correction 122,530
Secretary of Crime Control and Public Safety 122,530
Secretary of Cultural Resources 122,530
Secretary of Commerce 122,530
Secretary of Environment and Natural Resources 122,530
Secretary of Health and Human Services 122,530
Secretary of Juvenile Justice and
Delinquency Prevention 122,530
Secretary of Public Safety 122,530
Secretary of Revenue 122,530
Secretary of Transportation 122,530".
CERTAIN EXECUTIVE BRANCH OFFICIALS
SECTION 27.3. Effective for the 2012‑2013 fiscal year, the annual salaries, payable monthly, for the following executive branch officials are:
Executive Branch Officials Annual Salary
Chairman, Alcoholic Beverage Control Commission $111,525
State Controller 156,079
Commissioner of Motor Vehicles 111,525
Commissioner of Banks 125,416
Chairman, Employment Security Commission 122,530
State Personnel Director 122,530
Chairman, Parole Commission 101,836
Members of the Parole Commission 47,009
Chairman, Utilities Commission 139,673
Members of the Utilities Commission 125,416
Executive Director, Agency for
Public Telecommunications 94,018
Director, Museum of Art 114,277
Executive Director, North Carolina
Agricultural Finance Authority 108,554
State Chief Information Officer 156,079
SECTION 27.4.(a) Effective for the 2012‑2013 fiscal year, the annual salaries, payable monthly, for specified judicial branch officials are:
Judicial Branch Officials Annual Salary
Chief Justice, Supreme Court $143,469
Associate Justice, Supreme Court 139,719
Chief Judge, Court of Appeals 137,492
Judge, Court of Appeals 133,899
Judge, Senior Regular Resident Superior Court 130,260
Judge, Superior Court 126,621
Chief Judge, District Court 114,979
Judge, District Court 111,341
District Attorney 121,452
Administrative Officer of the Courts 129,019
Assistant Administrative Officer of the Courts 117,847
Public Defender 121,452
Director of Indigent Defense Services 125,236
SECTION 27.4.(b) The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts or the Commission on Indigent Defense Services, respectively, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed seventy thousand three hundred fifteen dollars ($70,315), and the minimum salary of any assistant district attorney or assistant public defender is at least thirty‑six thousand seven hundred forty‑four dollars ($36,744), effective July 1, 2012.
SECTION 27.4.(b1) The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts or the Commission on Indigent Defense Services, respectively, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed seventy‑two thousand two hundred twenty‑three dollars ($72,223), and the minimum salary of any assistant district attorney or assistant public defender is at least thirty‑seven thousand eight hundred fifty‑one dollars ($37,851), effective July 1, 2012.
SECTION 27.4.(c) Effective July 1, 2012, the annual salaries of permanent, full‑time employees of the Judicial Department whose salaries are not itemized in this act shall be increased by one and eight‑tenths percent (1.8%).
SECTION 27.4.(d) Effective July 1, 2012, the annual salaries of permanent, part‑time employees of the Judicial Department whose salaries are not itemized in this act shall be increased by one and eight‑tenths percent (1.8%).
CLERK OF SUPERIOR COURT/SALARY INCREASES
SECTION 27.5. Effective July 1, 2012, G.S. 7A‑101(a) reads as rewritten:
"(a) The clerk of superior court is a full‑time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county as determined in subsection (a1) of this section, according to the following schedule:
Population Annual Salary
Less than 100,000 $ 82,401 83,842
100,000 to 149,999 92,468 94,132
150,000 to 249,999 102,536 104,382
250,000 and above 112,607 114,634.
When a county changes from one population group to another, the salary of the clerk shall be changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate for the new population group, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office."
ASSISTANT AND DEPUTY CLERKS OF COURT/SALARY INCREASES
SECTION 27.6. Effective July 1, 2012, G.S. 7A‑102(c1) reads as rewritten:
"(c1) A full‑time assistant clerk or a full‑time deputy clerk, and up to one full‑time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks and Head Bookkeeper Annual Salary
Minimum $ 32,222 32,802
Maximum 54,767 55,753
Deputy Clerks Annual Salary
Minimum $ 27,888 28,390
Maximum 42,596. 43,363."
SECTION 27.7.(a) Effective July 1, 2012, G.S. 7A‑171.1(a) reads as rewritten:
"(a) The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate.
(1) A full‑time magistrate shall be paid the annual salary indicated in the table set out in this subdivision. A full‑time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office. The Administrative Officer of the Courts shall designate whether a magistrate is full‑time. Initial appointment shall be at the entry rate. A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.
Table of Salaries of Full‑Time Magistrates
Step Level Annual Salary
Entry Rate $32,633 $33,220
Step 1 35,525 36,164
Step 2 38,671 39,367
Step 3 42,134 42,892
Step 4 45,999 46,823
Step 5 50,335 51,261
Step 6 55,238. 56,232.
(2) A part‑time magistrate is a magistrate who is assigned to work an average of less than 40 hours of work a week during the term, except that no magistrate shall be assigned an average of less than 10 hours of work a week during the term. A part‑time magistrate is included, in accordance with G.S. 7A‑170, under the provisions of G.S. 135‑1(10) and G.S. 135‑40.2(a). The Administrative Officer of the Courts designates whether a magistrate is a part‑time magistrate. A part‑time magistrate shall receive an annual salary based on the following formula: The average number of hours a week that a part‑time magistrate is assigned work during the term shall be multiplied by the annual salary payable to a full‑time magistrate who has the same number of years of service prior to the beginning of that term as does the part‑time magistrate and the product of that multiplication shall be divided by the number 40. The quotient shall be the annual salary payable to that part‑time magistrate.
(3) Notwithstanding any other provision of this subsection, a magistrate who is licensed to practice law in North Carolina or any other state shall receive the annual salary provided in the Table in subdivision (1) of this subsection for Step 4."
SECTION 27.7.(b) Effective July 1, 2012, G.S. 7A‑171.1(a1)(1) reads as rewritten:
"(a1) Notwithstanding subsection (a) of this section, the following salary provisions apply to individuals who were serving as magistrates on June 30, 1994:
(1) The salaries of magistrates who on June 30, 1994, were paid at a salary level of less than five years of service under the table in effect that date shall be as follows:
Less than 1 year of service $26,528 $27,006
1 or more but less than 3 years of
service 27,695 28,1944
3 or more but less than 5 years of
service 30,044 30,585.
Upon completion of five years of service, those magistrates shall receive the salary set as the Entry Rate in the table in subsection (a)."
GENERAL ASSEMBLY PRINCIPAL CLERKS/SALARY INCREASES
SECTION 27.8. Effective July 1, 2012, G.S. 120‑37(c) reads as rewritten:
"(c) The principal clerks shall be full‑time
officers. Each principal clerk shall be entitled to other benefits available to
permanent legislative employees and shall be paid an annual salary of one
hundred four thousand eighty‑four dollars ($104,084) one hundred
five thousand nine hundred fifty‑eight dollars ($105,958) payable
monthly. Each principal clerk shall also receive such additional compensation
as approved by the Speaker of the House of Representatives or the President Pro
Tempore of the Senate, respectively, for additional employment duties beyond
those provided by the rules of their House. The Legislative Services Commission
shall review the salary of the principal clerks prior to submission of the
proposed operating budget of the General Assembly to the Governor and shall
make appropriate recommendations for changes in those salaries. Any changes
enacted by the General Assembly shall be by amendment to this paragraph."
SERGEANT‑AT‑ARMS AND READING CLERKS/SALARY INCREASES
SECTION 27.9. Effective July 1, 2012, G.S. 120‑37(b) reads as rewritten:
"(b) The sergeant‑at‑arms and the
reading clerk in each house shall be paid a salary of three hundred eighty
dollars ($380.00) three hundred eighty‑seven dollars ($387.00) per
week plus subsistence at the same daily rate provided for members of the General
Assembly, plus mileage at the rate provided for members of the General Assembly
for one round trip only from their homes to Raleigh and return. The sergeants‑at‑arms
shall serve during sessions of the General Assembly and at such time prior to
the convening of, and subsequent to adjournment or recess of, sessions as may
be authorized by the Legislative Services Commission. The reading clerks shall
serve during sessions only."
LEGISLATIVE EMPLOYEES/SALARY INCREASES
SECTION 27.10. Effective July 1, 2012, the Legislative Services Officer shall increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 2011‑2012 by one and eight‑tenths percent (1.8%). Nothing in this act limits any of the provisions of G.S. 120‑32.
COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES
SECTION 27.11.(a) The Director of the Budget shall transfer from the Reserve for Compensation Increases, created in this act for fiscal year 2012‑2013, funds to the North Carolina Community Colleges System Office necessary to provide an annual salary increase of one and eight‑tenths percent (1.8%), including funds for the employer's retirement and social security contributions, commencing July 1, 2012, for all community college employees supported by State funds.
SECTION 27.11.(a1) Effective July 1, 2012, the Director of the Budget shall transfer from the Reserve for Compensation Increases, created in this act for fiscal year 2012‑2013, funds to the North Carolina Community Colleges System Office necessary to provide an annual salary increase of:
(1) One and eight‑tenths percent (1.8%), including funds for the employer's retirement and social security contributions, commencing July 1, 2012, for all community college faculty and professional staff supported by State funds.
(2) One and eight‑tenths percent (1.8%), including funds for the employer's retirement and social security contributions, commencing July 1, 2012, for all other community college employees supported by State funds.
COMMUNITY COLLEGE FACULTY SALARIES
SECTION 27.12. Section 8.5 of S.L. 2007‑323 is amended by adding a new subsection to read:
"SECTION 8.5.(h) For the 2012‑2013 school year, the minimum salaries for nine‑month, full‑time curriculum community college faculty shall be as follows:
Education Level Minimum Salary
Vocational Diploma/Certificate or Less $34,932
Associate Degree or Equivalent $35,446
Bachelor's Degree $37,675
Master's Degree or Education Specialist $39,653
Doctoral Degree $42,505.
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members."
UNIVERSITY OF NORTH CAROLINA SYSTEM/EPA SALARY INCREASES
SECTION 27.13.(a) Effective July 1, 2012, the Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal years 2012‑2013, including funds for the employer's retirement and social security contributions, to provide to employees of The University of North Carolina, other than teachers of the North Carolina School of Science and Mathematics, whose salaries are supported by State funds and who are exempt from the State Personnel Act (EPA) an annual salary increase of one and eight‑tenths percent (1.8%) for faculty. The percentage annual salary increase authorized by this section shall be made on an aggregated average basis, according to the rules adopted by the Board of Governors of The University of North Carolina and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section. The Board of Governors may use a portion of the annual salary increase provided by this section to improve competitive national peer rankings for faculty.
SECTION 27.13.(a1) Effective July 1, 2012, the Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal year 2012‑2013, including funds for the employer's retirement and social security contributions, to provide to employees of The University of North Carolina, other than teachers of the North Carolina School of Science and Mathematics, whose salaries are supported by State funds and who are exempt from the State Personnel Act (EPA) an annual salary increase of one and eight‑tenths percent (1.8%) for faculty and nonfaculty. The percentage annual salary increase authorized by this section shall be made on an aggregated average basis, according to the rules adopted by the Board of Governors of The University of North Carolina, and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section.
SECTION 27.13.(b) Effective July 1, 2012, the Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal year 2012‑2013, including funds for the employer's retirement and social security contributions, to provide to employees of The University of North Carolina, other than teachers of the North Carolina School of Science and Mathematics, whose salaries are supported by State funds and who are exempt from the State Personnel Act (EPA) an annual salary increase of one and eight‑tenths percent (1.8%) for nonfaculty.
SECTION 27.13.(c) The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Compensation Increases, created in this act for fiscal year 2012‑2013 to provide an average annual salary increase of one and eight‑tenths percent (1.8%), including funds for the employer's retirement and social security contributions, commencing July 1, 2012, for all teaching employees of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA). These funds shall be allocated to individuals according to the rules adopted by the Board of Trustees of the North Carolina School of Science and Mathematics and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section.
SALARY ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES ONLY/NO AUTOMATIC INCREASES
SECTION 27.14.(a) Section 29.8(a) of S.L. 2011‑145, as amended by Section 59A of S.L. 2011‑391, reads as rewritten:
"SECTION 29.8.(a) The annual pay of all State employees for the 2011‑2013 fiscal biennium shall remain unchanged from that authorized on June 30, 2011, or the last date in pay status during the 2010‑2011 fiscal year, if earlier, except that an increase may be allowed under the following special circumstances:
(1) For all State employees regardless of funding source, and for employees of the North Carolina Community College System and local school boards who are paid from State funds, salaries may be increased for reallocations or promotions, in‑range adjustments for job change, career progression adjustments for demonstrated competencies, or where an OSP classification and compensation study has determined the State to be noncompetitive in the labor market, none of which are subject to the salary freeze otherwise provided by this Part. All other salary increases are prohibited.
(1a) For employees of the North Carolina Community College System, notwithstanding subdivision (1) of this subsection, salaries may be increased if the increase is funded from local funding sources.
(2) For The University of North Carolina, (i) faculty using funds from the Faculty Recruiting and Retention Fund, the Distinguished Professors Endowment Fund, or the University Cancer Research Fund in the case of faculty involved in cancer research supported by that fund and (ii) faculty, nonfaculty, and other employee adjustments, including retention adjustments, funded from non‑State funding sources.
(3) For employees of the judicial branch, for local supplementation as authorized by G.S. 7A‑300.1.
The cumulative salary adjustment allowed under this subsection
for the 2011‑2012 fiscal year may exceed ten percent (10%) of annual
salary only if the adjustment is approved in advance by the Office of State Budget
and Management, Personnel, The University of North Carolina Board of
Governors, the Board of the North Carolina Community College System, the
Legislative Services Commission, the local board of education, or other
authorized body as appropriate."
SECTION 27.14.(b) Notwithstanding G.S. 53‑96.1, and except as provided by subdivision (1) of subsection (a) of Section 29.8 of S.L. 2011‑145, employees of the Office of the Commissioner of Banks shall not receive compensation increases or bonuses during the 2012‑2013 fiscal year in excess of one and eight tenths percent (1.8%).
SECTION 27.14.(c) Employees of the Lottery Commission shall not receive compensation bonuses during the 2012‑2013 fiscal year in excess of one and eight‑tenths percent (1.8%).
SECTION 27.14.(d) No employee of any other State agency or constituent institution of The University of North Carolina, excluding employees of the University of North Carolina Health Care System and employees participating in a constituent institution's medical faculty practice plan, shall receive compensation bonuses in excess of one and eight‑tenths percent (1.8%)."
MOST STATE EMPLOYEES/SALARY INCREASES
SECTION 27.15.(a) The salaries in effect June 30, 2012, of all permanent full‑time State employees whose salaries are set in accordance with the State Personnel Act, and who are paid from the General Fund or the Highway Fund, shall be increased, effective July 1, 2012, by one and eight‑tenths percent (1.8%).
SECTION 27.15.(b) Except as otherwise provided in this act, the fiscal year 2012‑2013 salaries for permanent full‑time State officials and persons in exempt positions that are recommended by the Governor and set by the General Assembly shall be increased by one and eight‑tenths percent (1.8%), effective July 1, 2012.
SECTION 27.15.(c) The salaries in effect for fiscal year 2012‑2013 for all permanent part‑time State employees shall be increased, effective July 1, 2012, by the one and eight‑tenths percent (1.8%) salary increase provided for permanent full‑time employees covered under this part. Effective July 1, 2012, the salaries of permanent part‑time State employees shall be increased by the pro rata amount of one and eight‑tenths (1.8%).
SECTION 27.15.(d) The Director of the Budget may allocate out of special operating funds or from other sources of the employing agency, except tax revenues, sufficient funds to allow salary increases, effective July 1, 2012, increases in accordance with subsection (a), (b), or (c) of this section, including funds for the employer's retirement and social security contributions, for the permanent full‑time and part‑time employees of the agency, provided the employing agency elects to make available the necessary funds.
SECTION 27.15.(e) For the 2012‑2013 fiscal year, within regular State Budget Act procedures as limited by this act, all State agencies and departments may increase on an equitable basis the rate of pay of temporary and permanent hourly State employees, subject to availability of funds in the particular agency or department, by pro rata amounts of the one and eight‑tenths percent (1.8%) salary increase provided for permanent full‑time employees covered by the provisions of subsection (a) of this section, commencing July 1, 2012.
ALL STATE‑SUPPORTED PERSONNEL/SALARY INCREASES
SECTION 27.16.(a) Salaries and related benefits for positions that are funded partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund shall be increased from the General Fund or Highway Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund.
SECTION 27.16.(b) The granting of the salary increases under this act does not affect the status of eligibility for salary increments for which employees may be eligible unless otherwise required by this act.
SECTION 27.16.(c) The fiscal year 2012‑2013 salary increases provided in this act to be effective July 1, 2012, do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, or whose last workday is prior to July 1, 2012.
Payroll checks issued to employees after July 1, 2012, which represent payment of services provided prior to July 1, 2012, shall not be eligible for salary increases provided for in this act. This subsection shall apply to all employees, subject to or exempt from the State Personnel Act, paid from State funds, including public schools, community colleges, and The University of North Carolina.
SECTION 27.16.(d) The Director of the Budget shall transfer from the Reserve for Compensation Increases in this act for fiscal year 2012‑2013 all funds necessary for the salary increases provided by this act, including funds for the employer's retirement and social security contributions.
SECTION 27.16.(e) Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.
SECTION 27.16.(f) For the 2012‑2013 fiscal year, permanent full‑time employees who work a nine‑, ten‑, or eleven‑month work year schedule shall receive the one and eight‑tenths percent (1.8%) annual increase provided by this act.
STATE AGENCY TEACHERS' COMPENSATION
SECTION 27.17. The salaries of employees of schools operated by the Department of Health and Human Services and the Department of Public Safety who are paid on the Teacher Salary Schedule or the School Based Administrator Salary Schedule shall be paid according to the salary schedule set forth in Section 27.18(a) for the 2012‑2013 fiscal biennium.
TEACHER SALARY SCHEDULES
SECTION 27.18.(a) Effective for the 2012‑2013 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 this section and for longevity in accordance with subsection (b) 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.
The following monthly salary schedules shall apply for the 2012‑2013 fiscal year to certified personnel of the public schools who are classified as teachers. The schedules contain 35 steps, with each step corresponding to one year of teaching experience. Public school employees paid according to this salary schedule and receiving NBPTS certification or obtaining a master's degree shall not be prohibited from receiving the appropriate increase in salary.
2012‑2013 Monthly Salary Schedule
"A" Teachers
Years of Experience "A" Teachers NBPTS Certification
0 $3,043 N/A
1 $3,085 N/A
2 $3,085 N/A
3 $3,085 $3,455
4 $3,085 $3,455
5 $3,129 $3,504
6 $3,264 $3,656
7 $3,404 $3,812
8 $3,538 $3,963
9 $3,667 $4,107
10 $3,771 $4,224
11 $3,819 $4,277
12 $3,868 $4,332
13 $3,918 $4,388
14 $3,967 $4,443
15 $4,018 $4,500
16 $4,069 $4,557
17 $4,122 $4,617
18 $4,176 $4,677
19 $4,231 $4,739
20 $4,286 $4,800
21 $4,345 $4,866
22 $4,403 $4,931
23 $4,461 $4,996
24 $4,523 $5,066
25 $4,584 $5,134
26 $4,650 $5,208
27 $4,714 $5,280
28 $4,779 $5,352
29 $4,845 $5,426
30 $4,913 $5,503
31 $4,984 $5,582
32 $5,055 $5,662
33 $5,153 $5,771
34+ $5,255 $5,886
2012‑2013 Monthly Salary Schedule
"M" Teachers
Years of Experience "M" Teachers NBPTS Certification
0 $3,347 N/A
1 $3,394 N/A
2 $3,394 N/A
3 $3,394 $3,801
4 $3,394 $3,801
5 $3,442 $3,855
6 $3,590 $4,021
7 $3,744 $4,193
8 $3,892 $4,359
9 $4,034 $4,518
10 $4,148 $4,646
11 $4,201 $4,705
12 $4,255 $4,766
13 $4,310 $4,827
14 $4,364 $4,888
15 $4,420 $4,950
16 $4,476 $5,013
17 $4,534 $5,078
18 $4,594 $5,145
19 $4,654 $5,212
20 $4,715 $5,281
21 $4,780 $5,354
22 $4,843 $5,424
23 $4,907 $5,496
24 $4,975 $5,572
25 $5,042 $5,647
26 $5,115 $5,729
27 $5,185 $5,807
28 $5,257 $5,888
29 $5,330 $5,970
30 $5,404 $6,052
31 $5,482 $6,140
32 $5,561 $6,228
33 $5,668 $6,348
34+ $5,781 $6,475
SECTION 27.18.(b) Annual longevity payments for teachers shall be at the rate of one and one‑half percent (1.5%) of base salary for 10 to 14 years of State service, two and twenty‑five hundredths percent (2.25%) of base salary for 15 to 19 years of State service, three and twenty‑five hundredths percent (3.25%) of base salary for 20 to 24 years of State service, and four and one‑half percent (4.5%) of base salary for 25 or more years of State service. The longevity payment shall be paid in a lump sum once a year.
SECTION 27.18.(c) Certified public schoolteachers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers. Certified public schoolteachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers.
SECTION 27.18.(d) The first step of the salary schedule for school psychologists shall be equivalent to Step 8, corresponding to eight 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 27.18.(e) Speech pathologists who are certified as speech pathologists at the master's degree level and audiologists who are certified as audiologists at the master's degree level and who are employed in the public schools as speech and language specialists and audiologists shall be paid on the school psychologist salary schedule.
Speech pathologists and audiologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for speech pathologists and audiologists. Speech pathologists and audiologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for speech pathologists and audiologists.
SECTION 27.18.(f) Certified school nurses who are employed in the public schools as nurses shall be paid on the "M" salary schedule.
SECTION 27.18.(g) As used in this section, the term "teacher" shall also include instructional support personnel.
SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 27.19.(a) Effective for the 2012‑2013 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.
The following base salary schedule for school‑based administrators shall apply only to principals and assistant principals. This base salary schedule shall apply for the 2012‑2013 fiscal year, commencing July 1, 2012.
2012‑2013 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)
0‑7 $3,781 ‑ ‑ ‑ ‑
8 $3,931 ‑ ‑ ‑ ‑
9 $4,074 ‑ ‑ ‑ ‑
10 $4,189 ‑ ‑ ‑ ‑
11 $4,243 $4,243 ‑ ‑ ‑
12 $4,298 $4,298 ‑ ‑ ‑
13 $4,353 $4,353 $4,408 ‑ ‑
14 $4,408 $4,408 $4,464 ‑ ‑
15 $4,464 $4,464 $4,521 $4,579 ‑
16 $4,521 $4,521 $4,579 $4,640 $4,701
17 $4,579 $4,579 $4,640 $4,701 $4,762
18 $4,640 $4,640 $4,701 $4,762 $4,828
19 $4,701 $4,701 $4,762 $4,828 $4,891
20 $4,762 $4,762 $4,828 $4,891 $4,956
21 $4,828 $4,828 $4,891 $4,956 $5,025
22 $4,891 $4,891 $4,956 $5,025 $5,092
23 $4,956 $4,956 $5,025 $5,092 $5,166
24 $5,025 $5,025 $5,092 $5,166 $5,237
25 $5,092 $5,092 $5,166 $5,237 $5,310
26 $5,166 $5,166 $5,237 $5,310 $5,383
27 $5,237 $5,237 $5,310 $5,383 $5,458
28 $5,310 $5,310 $5,383 $5,458 $5,537
29 $5,383 $5,383 $5,458 $5,537 $5,617
30 $5,458 $5,458 $5,537 $5,617 $5,725
31 $5,537 $5,537 $5,617 $5,725 $5,839
32 $5,617 $5,617 $5,725 $5,839 $5,956
33 $5,725 $5,725 $5,839 $5,956 $6,075
34 $5,839 $5,839 $5,956 $6,075 $6,197
35 ‑ $5,956 $6,075 $6,197 $6,321
36 ‑ ‑ $6,197 $6,321 $6,447
37 ‑ ‑ $6,321 $6,447 $6,576
38 ‑ ‑ ‑ $6,576 $6,708
39 ‑ ‑ ‑ $6,708 $6,842
40 ‑ ‑ ‑ ‑ $6,979
2012‑2013 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+)
0‑17 $4,828 ‑ ‑ ‑
18 $4,891 ‑ ‑ ‑
19 $4,956 $5,025 ‑ ‑
20 $5,025 $5,092 $5,237 ‑
21 $5,092 $5,166 $5,310 $5,383
22 $5,166 $5,237 $5,383 $5,458
23 $5,237 $5,310 $5,458 $5,537
24 $5,310 $5,383 $5,537 $5,617
25 $5,383 $5,458 $5,617 $5,725
26 $5,458 $5,537 $5,725 $5,839
27 $5,537 $5,617 $5,839 $5,956
28 $5,617 $5,725 $5,956 $6,075
29 $5,725 $5,839 $6,075 $6,197
30 $5,839 $5,956 $6,197 $6,321
31 $5,956 $6,075 $6,321 $6,447
32 $6,075 $6,197 $6,447 $6,576
33 $6,197 $6,321 $6,576 $6,708
34 $6,321 $6,447 $6,708 $6,842
35 $6,447 $6,576 $6,842 $6,979
36 $6,576 $6,708 $6,979 $7,119
37 $6,708 $6,842 $7,119 $7,261
38 $6,842 $6,979 $7,261 $7,406
39 $6,979 $7,119 $7,406 $7,554
40 $7,119 $7,261 $7,554 $7,705
41 $7,261 $7,406 $7,705 $7,859
42 ‑ $7,554 $7,859 $8,016
43 ‑ $7,705 $8,016 $8,176
44 ‑ ‑ $8,176 $8,340
SECTION 27.19.(b) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, shall be determined in accordance with the following schedule:
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 27.19.(c) 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 no more than one step for every three years of experience as a principal.
Notwithstanding the salary schedule provided in subsection (a) of this section, the following base salary schedule shall apply for assistant principals and principals:
Classification Years of Experience Monthly Salary
Assistant Principal 5‑7 $3,931
Principal I 9‑11 $4,298
Principal II 11‑13 $4,464
Principal III 13‑15 $4,640
Principal IV 14‑16 $4,762
Principal V 15‑17 $4,891
Principal VI 17‑19 $5,092
Principal VII 18‑20 $5,310
Principal VIII 19‑21 $5,458
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 27.19.(d) Principals and assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
SECTION 27.19.(e) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
SECTION 27.19.(f) If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 27.19.(g) Participants in an approved full‑time master's in school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the master's program. 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 27.19.(h) During the 2012‑2013 fiscal year, the placement on the salary schedule of an administrator with a one‑year provisional assistant principal's certificate shall be at the entry‑level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.
SECTION 27.20.(a) The monthly salary ranges that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers, effective July 1, 2012:
School Administrator I $3,369 $6,319
School Administrator II $3,571 $6,701
School Administrator III $3,791 $7,110
School Administrator IV $3,944 $7,393
School Administrator V $4,103 $7,692
School Administrator VI $4,352 $8,157
School Administrator VII $4,527 $8,486
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee.
SECTION 27.20.(b) The monthly salary ranges that follow apply to public school superintendents, effective July 1, 2012:
Superintendent I $4,805 $9,002
Superintendent II $5,101 $9,546
Superintendent III $5,412 $10,127
Superintendent IV $5,744 $10,742
Superintendent V $6,096 $11,398
The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.
SECTION 27.20.(c) Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the State Personnel Act.
SECTION 27.20.(d) Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided pursuant to this section. Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for under this section.
SECTION 27.20.(e) The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.
SECTION 27.20.(f) The annual salary increase for all permanent full‑time personnel paid from the Central Office Allotment shall be the one and eight‑tenths percent (1.8%), commencing July 1, 2012. The State Board of Education shall allocate these funds to local school administrative units. The local boards of education shall establish guidelines for providing salary increases to these personnel.
NONCERTIFIED PERSONNEL SALARIES
SECTION 27.21.(a) The annual salary increase for permanent full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be increased by one and eight‑tenths percent (1.8%), commencing July 1, 2012.
SECTION 27.21.(b) Local boards of education shall increase the rates of pay for such employees who were employed for all or part of fiscal year 2011‑2012 and who continue their employment for fiscal year 2012‑2013 by providing an annual salary increase for employees of one and eight‑tenths percent (1.8%).
For part‑time employees, the pay increase shall be pro rata based on the number of hours worked.
SECTION 27.21.(c) The State Board of Education may adopt salary ranges for noncertified personnel to support increases of one and eight‑tenths percent (1.8%) for the 2012‑2013 fiscal year.
BONUS FOR CERTIFIED PERSONNEL AT THE TOP OF THEIR SALARY SCHEDULES
SECTION 27.22. Effective July 1, 2012, any permanent personnel employed on July 1, 2012, and paid at the top of the principal and assistant principal salary schedule shall receive a one‑time bonus equivalent to two percent (2%).
Effective July 1, 2012, any permanent certified personnel employed on July 1, 2012, and paid at the top of the teacher salary schedule shall receive a one‑time bonus equivalent to one and eight‑tenths percent (1.8%).
SALARY‑RELATED CONTRIBUTIONS
SECTION 27.25.(a) Effective for the 2012‑2013 fiscal year, required employer salary‑related contributions for employees whose salaries are paid from department, office, institution, or agency receipts shall be paid from the same source as the source of the employees' salary. If an employee's salary is paid in part from the General Fund or Highway Fund and in part from department, office, institution, or agency receipts, required employer salary‑related contributions may be paid from the General Fund or Highway Fund only to the extent of the proportionate part paid from the General Fund or Highway Fund in support of the salary of the employee, and the remainder of the employer's requirements shall be paid from the source that supplies the remainder of the employee's salary. The requirements of this section as to source of payment are also applicable to payments on behalf of the employee for hospital‑medical benefits, longevity pay, unemployment compensation, accumulated leave, workers' compensation, severance pay, separation allowances, and applicable disability income benefits.
Notwithstanding any other provision of law, an employing unit, as defined in G.S. 135‑45.1 or in G.S. 135‑48.1 as enacted by this act, that hires or has hired as an employee a retiree that is in receipt of monthly retirement benefits from any retirement system supported in whole or in part by contributions of the State shall enroll the retiree in the active group and pay the cost for the hospital‑medical benefits if that retiree is employed in a position that would require the employer to pay hospital‑medical benefits if the individual had not been retired.
SECTION 27.25.(b) Effective July 1, 2012, the State's employer contribution rates budgeted for retirement and related benefits as percentage of covered salaries for the 2012‑2013 fiscal year are: (i) fourteen and thirty‑one hundredths percent (14.31%) Teachers and State Employees; (ii) nineteen and thirty‑one hundredths percent (19.31%) State Law Enforcement Officers; (iii) twelve and sixty‑six hundredths percent (12.66%) University Employees' Optional Retirement System; (iv) twelve and sixty‑six hundredths percent (12.66%) Community College Optional Retirement Program; (v) thirty‑one and seventy hundredths percent (31.70%) Consolidated Judicial Retirement System; and (vi) five and thirty hundredths percent (5.30%) Legislative Retirement System. Each of the foregoing contribution rates includes five and thirty hundredths percent (5.30%) 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.
SECTION 27.25.(c) Effective July 1, 2012, the maximum annual employer contributions, payable monthly, by the State for each covered employee or retiree for the 2012‑2013 fiscal year to the State Health Plan for Teachers and State Employees are: (i) Medicare‑eligible employees and retirees four thousand thirty‑five dollars ($4,035) and (ii) non‑Medicare‑eligible employees and retirees five thousand one hundred ninety‑two dollars ($5,192).
PROVIDE COST‑OF‑LIVING INCREASES FOR RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM
SECTION 27.26.(a) G.S. 135‑5 is amended by adding a new subsection to read:
"(rrr) From and after July 1, 2012, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2011, shall be increased by one and nine‑tenths percent (1.9%) of the allowance payable on June 1, 2012, in accordance with G.S. 135‑5(o). Furthermore, from and after July 1, 2012, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2011, but before June 30, 2012, shall be increased by a prorated amount of one and nine‑tenths percent (1.9%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2011, and June 30, 2012."
SECTION 27.26.(b) G.S. 135‑65 is amended by adding a new subsection to read:
"(cc) From and after July 1, 2012, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2011, shall be increased by one and nine‑tenths percent (1.9%) of the allowance payable on June 1, 2012. Furthermore, from and after July 1, 2012, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2011, but before June 30, 2012, shall be increased by a prorated amount of one and nine‑tenths percent (1.9%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2011, and June 30, 2012."
SECTION 27.26.(c) G.S. 120‑4.22A is amended by adding a new subsection to read:
"(w) In accordance with subsection (a) of this section, from and after July 1, 2012, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 2012, shall be increased by one and nine‑tenths percent (1.9%) of the allowance payable on June 1, 2012. Furthermore, from and after July 1, 2012, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 2012, but before June 30, 2012, shall be increased by a prorated amount of one and nine‑tenths percent (1.9%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 2012, and June 30, 2012."
PART XXVIII. CAPITAL APPROPRIATIONS
WATER RESOURCES DEVELOPMENT PROJECT FUNDS
SECTION 28.1.(a) The Department of Environment and Natural Resources shall allocate the funds appropriated in this act for water resources development projects in accordance with the schedule that follows. These funds will provide a State match for thirty‑six million one hundred ninety‑four thousand dollars ($36,194,000) in federal funds.
2012‑2013
(1) B. Everett Jordan Lake Water Supply Storage ‑
(2) Wilmington Harbor Maintenance ‑
(3) Morehead City Harbor Maintenance ‑
(4) Wilmington Harbor Deepening (75/25) $ 3,000,000
(5) 2012 Corps MOA for Shallow Draft Inlet Dredging 2,000,000
(6) Water Resources Planning in Support of Session Law 2010‑143 ‑
(7) Carolina Beach Renourishment (65/35) 2,144,000
(8) Kure Beach Renourishment (65/35) 1,400,000
(9) Wilmington Harbor Improvements Feasibility (50/50) 250,000
(10) John H. Kerr Dam and Reservoir Sec. 216 (50/50) 200,000
(11) Planning Assistance to Communities (50/50) 10,000
(12) Aquatic Plant Control, Statewide and Lake Gaston (50/50) ‑
(13) Bogue Banks Coastal Storm Damage Reduction Study (50/50) 62,000
(14) West Onslow Beach (Topsail Beach) PED (75/25) 8,000
(15) Surf City/NTB Coastal Storm Damage Reduction Study PED (75/25) ‑
(16) Neuse River Basin Restoration PED (50/50) 100,000
(17) Currituck Sound Environmental Restoration Study (50/50) 58,000
(18) Concord Streams, NC Sec. 206 (65/35) ‑
(19) State‑Local Projects ‑
(20) Catawba Water Management Group Study ‑
(21) Emerald Isle Beach/Pine Knolls Shores Renourishment 1,400,000
(22) North Topsail Beach Renourishment Project 2,520,000
(23) Southern Shores Canal Dredging ‑
(24) Carteret Co. Bogue Banks Master Beach Renourishment Plan ‑
(25) Topsail Beach Renourishment Project 526,000
TOTALS $ 13,678,000
SECTION 28.1.(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 2012‑2013 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 2012‑2013.
(3) State‑local water resources development projects.
However, fund availability shall not be used to fund the North Carolina International Terminal. Funds not expended or encumbered for these purposes shall revert to the General Fund at the end of the 2012‑2013 fiscal year.
SECTION 28.1.(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.
SECTION 28.1.(d) Notwithstanding any provision of law to the contrary, funds appropriated for a water resources development project shall be used to provide no more than fifty percent (50%) of the nonfederal portion of funds for the project. This subsection applied to funds appropriated in this act and to funds appropriated prior to the 2011‑2013 fiscal biennium that are unencumbered and proposed for reallocation to provide the nonfederal portion of funds for water resources development projects. The limitation on fund usage contained in this subsection applies only to projects in which local government or local governments participate.
SECTION 28.1.(e) G.S. 143‑215.73A is amended by adding a new subsection to read:
"(c1) The Department shall provide information annually to appropriate county or municipal officials about the availability, requirements, and process to secure federal and State funding under the Water Resource Development Program."
SECTION 28.1.(f) The Department's "2012 Long Term Dredging Memorandum of Agreement" (MOA) with the U.S. Army Corps of Engineers is the subject of this subsection.
(1) The prioritization of all projects completed using these funds will be in joint consultation with the State, applicable local units of government, and the U.S. Army Corps of Engineers.
(2) Funds appropriated for this MOA shall be fifty percent (50%) of the total cost for each project that is directly requested by a unit of local government.
(3) The Department shall make annual reports on the use of funds provided to the U.S. Army Corps of Engineers under the "2012 Long Term Dredging Memorandum of Agreement" 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:
a. All projects started.
b. Estimated cost of each project.t
c. The date that work on each project began or is expected to begin.
d. The date that work on each project was completed or is expected to be completed.
e. The actual cost of each project.
(4) Notwithstanding subdivisions (1) and (2) of this subsection, a minimum of two million dollars ($2,000,000) shall be reserved for the dredging of Oregon Inlet. No local match will be required for this project.
GREENSBORO READINESS CENTER‑ADDITION/ALTERATION
SECTION 28.2. Notwithstanding the provisions of G.S. 143C‑4‑3, the Department of Public Safety may use up to one million three hundred thousand dollars ($1,300,000) in funds appropriated to the Repairs and Renovations Reserve Account in FY 2011‑2012 as the State match for the renovation and expansion of the Greensboro Readiness Center.
NON‑GENERAL FUND CAPITAL IMPROVEMENT AUTHORIZATIONS
SECTION 28.3.(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:
Amount of Non‑General Fund
Name of Project Funding Authorized for FY 2012‑2013
Department of Public Safety Training Site Improvements $ 620,000
Aviation Facilities Improvements 600,000
Logistics Facilities Improvements 310,000
Career Tech. Ed. Ctr. Stonewall Jackson Y.D.C. 163,332
Track and Field Facility Stonewall Jackson Y.D.C. 161,046
Storage Sheds Statewide 51,765
Readiness Centers Improvements 40,000
Information Technology Services
Lighting Upgrade 3700 Wake Forest Rd. 780,000
Department of Agriculture
Parking Improvement/Expansion‑Raleigh Farmers Market 200,000
Wholesale Dock Enclosure Raleigh Farmers Market 750,000
Phase II Greenhouse Exp. Additional Funding Tidewater RS 200,000
Phase II Calf Barn Construction Piedmont RS 150,000
Forest Road Construction 150,000
HVAC Campus Improvements State Fairgrounds 2,500,000
Campus Infrastructure State Fairgrounds 3,000,000
Renovations to Existing Buildings State Fairgrounds 3,000,000
Hunt Horse Complex Site Rep & Improvements St Fairgrounds 3,000,000
Department of Cultural Resources
NC Maritime Museum Gallants Channel Multiuse Facility 1,115,000
N C Museum of Art Trail Improvement Project 370,000
Duke Homestead Picnic Shelter 175,000
Department of Environment and Natural Resources
Sound Side Dock & Education Gazebo at Roanoke Is Aquarium 350,000
NC Zoo Solar Pointe Restrooms 400,000
Wildlife Resources Commission
Agency Land Purchase 3,750,000
Table Rock Hatchery Building Replacement 75,000
Watha Hatchery Building Replacement 300,000
New Construction of Fishing Access Areas 240,000
New Construction of Boating Access Areas 800,000
Renovations of Existing Boating Access Areas 800,000
ADA Initiative of Existing Boating Access Areas 280,000
Infrastructure Repair and Renovation 1,500,000
Department of Transportation
Maintenance Yard Land Purchase 150,000
Currituck Operations Building and Welcome Center 2,375,000
TOTAL AMOUNT OF NON‑GENERAL FUND CAPITAL
PROJECTS AUTHORIZED $27,031,143
SECTION 28.3.(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 2012‑2013 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, and environmental studies, and for the management of the plant conservation program preserves owned by the Department.
AMEND REPAIRS AND RENOVATION RESERVE ACCOUNT
SECTION 28.4. G.S. 143C‑4‑3 is amended by adding a new subsection to read:
"§ 143C‑4‑3. Repairs and Renovations Reserve Account.
(a) Creation and Source of Funds. The Repairs and Renovations Reserve Account is established as a reserve in the General Fund. The State Controller shall reserve to the Repairs and Renovations Reserve Account one‑fourth of any unreserved fund balance, as determined on a cash basis, remaining in the General Fund at the end of each fiscal year.
(b) Use of Funds. The funds in the Repairs and Renovations Reserve Account shall be used only for the repair and renovation of State facilities and related infrastructure that are supported from the General Fund. Funds from the Repairs and Renovations Reserve Account shall be used only for the following types of projects:
(1) Roof repairs and replacements;
(2) Structural repairs;
(3) Repairs and renovations to meet federal and State standards;
(4) Repairs to electrical, plumbing, and heating, ventilating, and air‑conditioning systems;
(5) Improvements to meet the requirements of the Americans with Disabilities Act, 42 U.S.C. § 12101, et seq., as amended;
(6) Improvements to meet fire safety needs;
(7) Improvements to existing facilities for energy efficiency;
(8) Improvements to remove asbestos, lead paint, and other contaminants, including the removal and replacement of underground storage tanks;
(9) Improvements and renovations to improve use of existing space;
(10) Historical restoration;
(11) Improvements to roads, walks, drives, utilities infrastructure; and
(12) Drainage and landscape improvements.
Funds from the Repairs and Renovations Reserve Account shall not be used for new construction or the expansion of the building area (sq. ft.) of an existing facility unless required in order to comply with federal or State codes or standards.
(c) Use of Funds. Funds Available Only Upon Appropriation. Funds reserved to the Repairs and Renovations Reserve Account shall be available for expenditure only upon an act of appropriation by the General Assembly.
(d) Board of Governors May Allocate Funds to Particular Projects. Any funds in the Reserve for Repairs and Renovations that are allocated to the Board of Governors of The University of North Carolina may be allocated or reallocated by the Board for repairs and renovations projects so long as (i) any project that receives an allocation or reallocation satisfies the requirements of subsection (b) of this section unless the Board determines that sufficient funds are not available from other sources and that conditions warrant General Fund assistance and (ii) the allocation or reallocation is in accordance with guidelines developed in The University of North Carolina Funding Allocation Model for Reserve for Repairs and Renovations, as approved by the Board of Governors of The University of North Carolina. The Board of Governors shall report to the Joint Legislative Commission on Governmental Operations on the allocation or reallocation of funds pursuant to this section within 60 days of any allocation or reallocation under this subsection.
(e) Office of State Budget and Management May Allocate Funds to Particular Projects. Any funds in the Reserve for Repairs and Renovations that are allocated to the Office of State Budget and Management may be allocated or reallocated by the State Budget Office for repairs and renovations projects so long as any project that receives an allocation or reallocation satisfies the requirements of subsection (b) of this section. The State Budget Office shall report to the Joint Legislative Commission on Governmental Operations on the allocation or reallocation of funds pursuant to this section within 60 days of any allocation or reallocation under this subsection."
REINSTATE SALES TAX TO 5.5%
SECTION 29.1.(a) G.S. 105‑164.4(a) reads as rewritten:
"(a) A privilege tax is imposed on a retailer at
the following percentage rates of the retailer's net taxable sales or gross
receipts, as appropriate. The general rate of tax is four and three‑quarters
percent (4.75%).five and one‑half percent (5.5%)."
SECTION 29.1.(b) G.S. 105‑164.4(a), as rewritten by subsection (a) of this sectiont, reads as rewritten:
"(a) A privilege tax is imposed on a retailer at
the following percentage rates of the retailer's net taxable sales or gross
receipts, as appropriate. The general rate of tax is five and one‑half
percent (5.5%).four and seventy‑five hundredths percent (4.75%)."
SECTION 29.1.(c) Subsection (a) of this section becomes effective July 1, 2012, and applies to sales made on or after that date. Subsection (b) of this section becomes effective July 1, 2014, and applies to sales made on or after that date. The remainder of this section is effective when it becomes law.
SECTION 29.1.(d) The sales tax is increased to provide funding for North Carolina public education, community colleges, university system, and prekindergarten.
ENHANCE R&D TAX CREDIT FOR SMALL BUSINESSES
SECTION 29.2.(a) G.S. 105‑129.50(10) reads as rewritten:
"§ 105‑129.50. Definitions.
The definitions in section 41 of the Code apply in this Article. In addition, the following definitions apply in this Article:
(10) Small business. A business whose annual receipts,
combined with the annual receipts of all related persons, for the applicable
period of measurement did not exceed one million dollars ($1,000,000).two
million five hundred thousand dollars ($2,500,000)."
SECTION 29.2.(b) G.S. 105‑129.55(a) reads as rewritten:
"(a) Qualified North Carolina Research Expenses. A taxpayer that has qualified North Carolina research expenses for the taxable year is allowed a credit equal to a percentage of the expenses, determined as provided in this section. Only one credit is allowed under this section with respect to the same expenses. If more than one subdivision of this section applies to the same expenses, then the credit is equal to the higher percentage, not both percentages combined. If part of the taxpayer's qualified North Carolina research expenses qualifies under more than one subdivision of this section, the applicable percentages apply separately to each part of the expenses.
(1) Small business. If the taxpayer was a small
business as of the last day of the taxable year, the applicable percentage is three
and one‑quarter percent (3.25%).five percent (5%).
(2) Low‑tier research. For expenses with respect to research performed in a development tier one area, the applicable percentage is three and one‑quarter percent (3.25%).
(2a) University research. For North Carolina university
research expenses, the applicable percentage is twenty percent (20%).twenty‑five
percent (25%).
(2b) Eco‑Industrial Park. For expenses with respect to research performed in an Eco‑Industrial Park certified under G.S. 143B‑437.08, the applicable percentage is thirty‑five percent (35%).
(3) Other research. For expenses not covered under another subdivision of this section, the percentages provided in the table below apply to the taxpayer's qualified North Carolina research expenses during the taxable year at the following levels:
Expenses Over Up To Rate
‑0‑ $50 million 1.25%
$50 million $200 million 2.25%
$200 million 3.25%".
SMALL BUSINESS START‑UP TAX RELIEF
SECTION 29.3.(a) 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:
(22) The amount of the exclusion of gain for qualified businesses allowed under Part 5 of this Article, plus an amount equal to 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 29.3.(b) G.S. 105‑163.013 and G.S. 105‑163.015 are recodified as G.S. 105‑163.010A and G.S. 105‑163.010B, respectively.
SECTION 29.3.(c) Part 5 of Article 4 of Chapter 105 of the General Statutes reads as rewritten:
"Part 5. Tax Credits Incentives for Qualified
Business Investments.
"Subpart 1. General Provisions.
"§ 105‑163.010. (Repealed effective for investments made on or after January 1, 2013) Definitions.
The following definitions apply in this Part:
(4) Equity security. Common stock, preferred stock,
or an interest in a partnership, partnership or limited liability company,
or subordinated debt that is convertible into, or entitles the holder to
receive upon its exercise, common stock, preferred stock, or an interest in a partnership.
partnership or limited liability company.
(8) Qualified business venture. A business that (i)
engages primarily in manufacturing, processing, warehousing, wholesaling,
research and development, or a service‑related industry, and (ii) is
registered with the Secretary of State under G.S. 105‑163.013.G.S. 105‑163.010A.
(9) Qualified grantee business. A business that (i)
is registered with the Secretary of State under G.S. 105‑163.013,
G.S. 105‑163.010A , and (ii) has received during the
current year or any of the preceding three years a grant, an investment, or
other funding from a federal agency under the Small Business Innovation
Research Program administered by the United States Small Business
Administration or from a granting entity as defined in this section.
(9a) Qualified licensee business. A business that meets all of the following conditions:
a. It is registered with the Secretary of State under G.S. 105‑163.013.
b. During its most recent fiscal year before filing an application for registration under G.S. 105‑163.013, it had gross revenues, as determined in accordance with generally accepted accounting principles, of one million dollars ($1,000,000) or less on a consolidated basis.
c. It has been certified by a constituent institution of The University of North Carolina or a research university as currently performing under a licensing agreement with the institution or university for the purpose of commercializing technology developed at the institution or university. For the purpose of this section, a research university is an institution of higher education classified as a Doctoral/Research University, Extensive or Intensive, in the most recent edition of "A Classification of Institutions of Higher Education", the official report of The Carnegie Foundation for the Advancement of Teaching.
(13) Service‑related industry. A business is
engaged in a service‑related industry, whether or not it also sells a
product, if it provides services to customers or clients and does not as a
substantial part of its business engage in a business described in G.S. 105‑163.013(b)(4).
G.S. 105‑163.010A(b)(4). A business is engaged as a
substantial part of its business in an activity described in G.S. 105‑163.013(b)(4)
G.S. 105‑163.010A(b)(4) if (i) its gross revenues derived
from all activities described in that subdivision exceed twenty‑five percent
(25%) of its gross revenues in any fiscal year or (ii) it is established as one
of its primary purposes to engage in any activities described in that
subdivision, whether or not its purposes were stated in its articles of
incorporation or similar organization documents.
(14) Subordinated debt. Indebtedness that is not
secured and is subordinated to all other indebtedness of the issuer issued or
to be issued to a financial institution other than a financial institution
described in subdivisions (5)(ii) through (5)(v) of this section. Except For
the purposes of Subpart 2 of this Part only, except as provided in G.S. 105‑163.014(d1),
any portion of indebtedness that matures earlier than five years after its
issuance is not subordinated debt.
"§ 105‑163.010A. Registration.
(a) Repealed by Session Laws 1993, c. 443, s. 4.
(b) Qualified Business Ventures. In order to qualify as a qualified business venture under this Part, a business must be registered with the Securities Division of the Department of the Secretary of State. To register, the business must file with the Secretary of State an application and any supporting documents the Secretary of State may require from time to time to determine that the business meets the requirements for registration as a qualified business venture. A business meets the requirements for registration as a qualified business venture if all of the following are true as of the date the business files the required application:
(1) Repealed by Session Laws 1996, Second Extra Session, c. 14, s. 7.
(1a) Reserved for future codification purposes.
(1b) Either (i) it was organized after January 1 of the calendar year in which its application is filed or (ii) during its most recent fiscal year before filing the application, it had gross revenues, as determined in accordance with generally accepted accounting principles, of five million dollars ($5,000,000) or less on a consolidated basis.
(2) Repealed by Session Laws 1996, Second Extra Session, c. 14, s. 7.
(3) It is organized to engage primarily in manufacturing, processing, warehousing, wholesaling, research and development, or a service‑related industry.
(4) It does not engage as a substantial part of its business in any of the following:
a. Providing a professional service as defined in Chapter 55B of the General Statutes.
b. Construction or contracting.
c. Selling or leasing at retail.
d. The purchase, sale, or development, or
purchasing,Purchasing, developing, selling, or holding for
investment of commercial paper, notes, other indebtedness, financial
instruments, securities, or real property, or otherwise makemaking
investments.
e. Providing personal grooming or cosmetics services.
f. Offering any form of entertainment, amusement, recreation, or athletic or fitness activity for which an admission or a membership is charged.
(5) It was not formed for the primary purpose of
acquiring all or part of the stockstock, other ownership interest,
or assets of one or more existing businesses.
(6) It is not a real estate‑related business.
The effective date of registration for a qualified business venture whose application is accepted for registration is 60 days before the date its application is filed. No credit or exclusion of gain is allowed under this Part for an investment made before the effective date of the registration or after the registration is revoked. For the purpose of this Article, if a taxpayer's investment is placed initially in escrow conditioned upon other investors' commitment of additional funds, the date of the investment is the date escrowed funds are transferred to the qualified business venture free of the condition.
To remain qualified as a qualified business venture, the business must renew its registration annually as prescribed by rule by filing a financial statement for the most recent fiscal year showing gross revenues, as determined in accordance with generally accepted accounting principles, of five million dollars ($5,000,000) or less on a consolidated basis and an application for renewal in which the business certifies the facts required in the original application.
Failure of a qualified business venture to renew its
registration by the applicable deadline shall result results in
revocation of its registration effective as of the next day after the renewal
deadline, but shall does not result in forfeiture of tax credits
previously allowed to taxpayers who invested in the business except as provided
in G.S. 105‑163.014. The Secretary of State shall send the qualified
business venture notice of revocation within 60 days after the renewal
deadline. A qualified business venture may apply to have its registration
reinstated by the Secretary of State by filing an application for
reinstatement, accompanied by the reinstatement application fee and a late
filing penalty of one thousand dollars ($1,000), within 30 days after receipt
of the revocation notice from the Secretary of State. A business that seeks
approval of a new application for registration after its registration has been
revoked must also pay a penalty of one thousand dollars ($1,000). A
registration that has been reinstated is treated as if it had not been revoked.
If the gross revenues of a qualified business venture exceed five million dollars ($5,000,000) in a fiscal year, the business must notify the Secretary of State in writing of this fact by filing a financial statement showing the revenues of the business for that year.
(b1) Qualified Licensee Businesses. In order to qualify as a qualified licensee business under this Part, a business must be registered with the Securities Division of the Department of the Secretary of State. To register, the business must file with the Secretary of State an application and any supporting documents the Secretary of State may require from time to time to determine that the business meets the requirements for registration as a qualified licensee business. The requirements for registration as a qualified licensee business are set out in G.S. 105‑163.010.
The effective date of registration for a qualified licensee business whose application is accepted for registration is the filing date of its application. No credit or exclusion of gain is allowed under this Part for an investment made before the effective date of the registration or after the registration is revoked.
To remain qualified as a qualified licensee business, the business must renew its registration annually as prescribed by rule by filing a financial statement for the most recent fiscal year showing gross revenues, as determined in accordance with generally accepted accounting principles, of one million dollars ($1,000,000) or less on a consolidated basis and an application for renewal in which the business certifies the facts required in the original application.
Failure of a qualified licensee venture business to
renew its registration by the applicable deadline results in revocation of its
registration effective as of the next day after the renewal deadline, but does not
result in forfeiture of tax credits previously allowed to taxpayers who
invested in the business except as provided in G.S. 105‑163.014. The
Secretary of State shall send the qualified licensee business notice of
revocation within 60 days after the renewal deadline. A qualified licensee
business may apply to have its registration reinstated by the Secretary of
State by filing an application for reinstatement, accompanied by the
reinstatement application fee and a late filing penalty of one thousand dollars
($1,000), within 30 days after receipt of the revocation notice from the
Secretary of State. A business that seeks approval of a new application for
registration after its registration has been revoked must also pay a penalty of
one thousand dollars ($1,000). A registration that has been reinstated is
treated as if it had not been revoked.
If the gross revenues of a qualified licensee business exceed one million dollars ($1,000,000) in a fiscal year, the business must notify the Secretary of State in writing of this fact by filing a financial statement showing the revenues of the business for that year.
(c) Qualified Grantee Businesses. In order to qualify as a qualified grantee business under this Part, a business must be registered with the Securities Division of the Department of the Secretary of State. To register, the business must file with the Secretary of State an application and any supporting documents the Secretary of State may require from time to time to determine that the business meets the requirements for registration as a qualified grantee business. The requirements for registration as a qualified grantee business are set out in G.S. 105‑163.010.
The effective date of registration for a qualified grantee business whose application is accepted for registration is the filing date of its application. No credit or exclusion of gain is allowed under this Part for an investment made before the effective date of the registration or after the registration is revoked.
To remain qualified as a qualified grantee business, the business must renew its registration annually as prescribed by rule by filing an application for renewal in which the business certifies the facts demonstrating that it continues to meet the applicable requirements for qualification.
(d) Application Forms; Rules; Fees. Applications for
registration, renewal of registration, and reinstatement of registration under
this section shall be in the form required by the Secretary of State. The
Secretary of State may, by rule, require applicants to furnish supporting
information in addition to the information required by subsections (b), (b1),
and (c) of this section. The Secretary of State may adopt rules in accordance
with Chapter 150B of the General Statutes that are needed to carry out the
Secretary's responsibilities under this Part. The Secretary of State shall
prepare blank forms for the applications and shall distribute them throughout
the State and furnish them on request. Each application shall be signed by the owners
of the business or, in the case of a corporation, by its president, vice‑president,
treasurer, or secretary. owners, a manager, or an executive officer of
the business. There shall be annexed to the application the affirmation of
the person making the application in the following form: 'Under penalties
prescribed by law, I certify and affirm that to the best of my knowledge and
belief this application is true and complete.' A person who submits a false
application is guilty of a Class 1 misdemeanor.
The fee for filing an application for registration under this section is one hundred dollars ($100.00). The fee for filing an application for renewal of registration under this section is fifty dollars ($50.00). The fee for filing an application for reinstatement of registration under this section is fifty dollars ($50.00).
An application for renewal of registration under this section must indicate whether the applicant is a minority business, as defined in G.S. 143‑128, and include a report of the number of jobs the business created during the preceding year that are attributable to investments that qualify under this section for a tax credit and the average wages paid by each job. An application that does not contain this information is incomplete and the applicant's registration may not be renewed until the information is provided.
"§ 105‑163.010B. Sunset.
This Part is repealed effective for investments made on or
after January 1, 2013.2016.
"Subpart 2. Tax Credits for Qualified Business Investments.
"§ 105‑163.011. Tax credits allowed.
"§ 105‑163.012. (Repealed effective for investments made on or after January 1, 2013) Limit; carry‑over; ceiling; reduction in basis.
(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).
ten million dollars ($10,000,000). 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.
"§ 105‑163.014. (Repealed for investments made on or after January 1, 2013) Forfeiture of credit.
"Subpart 3. Exclusion of Gain on Qualified Business Investments.
"§ 105‑163.020. Exclusion of gain allowed.
(a) Individuals. An individual may elect to exclude from the individual'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) Gain Recognized on Sales by Pass‑Through Entities. This subsection does not apply to a pass‑through entity that has committed capital under management in excess of five million dollars ($5,000,000) or to a pass‑through entity that is a qualified business or a North Carolina Enterprise Corporation. Each individual that is an owner of a pass‑through entity may elect to exclude from the individual's income taxable under this Article an amount equal to the individual's allocated share of the exclusion for which the pass‑through entity would be eligible under subsection (a) of this section if the pass‑through entity were an individual.
(c) Gain Recognized on Sale of Pass‑Through Entities. This subsection does not apply to a pass‑through entity that has committed capital under management in excess of five million dollars ($5,000,000) or to a pass‑through entity that is a qualified business or a North Carolina Enterprise Corporation. An individual may exclude from the individual's income taxable under this Article a portion of the gain or other taxable income recognized as a result of the individual's sale or exchange of an ownership interest in the pass‑through entity that invested in qualified securities. The portion of the gain or other taxable income that may be excluded from income taxable under this Article is the gain or other taxable income recognized as a result of the sale or exchange of an ownership interest 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 securities 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 at the time of the pass‑through entity's sale or exchange.
(d) Election Irrevocable. A taxpayer's election as to whether to exclude gain from taxable income becomes irrevocable upon filing the taxpayer's income tax return for the taxable year.
"§ 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 liability 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, 2012.
(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. 105‑163.010A 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 or 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, 2012, 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."
SECTION 29.3.(d) This section is effective for taxable years beginning on or after January 1, 2012.
SMALL BUSINESS JOBS CREDIT
SECTION 29.4.(a) Article 3B of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑129.16K. Temporary small business job creation tax credit.
(a) Definitions. The following definitions apply in this section:
(1) Eligible business. A business that has no more than 500 full‑time employees in this State at the beginning of the taxable year and employed five or more full‑time employees on December 31, 2011.
(2) Eligible new job. A new job that pays wages, upon which taxes are withheld under Article 4A of this Chapter, of at least twenty thousand dollars ($20,000) over the first 12‑month period.
(3) Establishment. Defined in G.S. 105‑129.81.
(4) Full‑time employee. Defined in G.S. 105‑129.81.
(5) Full‑time job. Defined in G.S. 105‑129.81.
(6) New job. A job that represents a net increase in the number of the taxpayer's full‑time jobs statewide. The net increase in full‑time jobs is the difference between: (i) the total number of full‑time employees employed by the employer on May 1, 2012; and (ii) the number of full‑time employees employed by the employer on December 31, 2012. The net increase in full‑time jobs cannot exceed the number of qualified full‑time employees hired after May 1, 2012, but before January 1, 2013. The term does not include a job previously located in this State that is transferred to the business from a related member of the business as defined in G.S. 105‑130.7A.
(7) Qualified employee. An individual that satisfies at least one of the following two conditions, subject to the exclusion in (c) below.
a. Is unemployed, or employed for less than 40 hours, for the 180‑day period ending the date that employment with the taxpayer began.
b. Was in active military service in an area designated by the President of the United States by executive order as a "combat zone" anytime after September 11, 2001, and who was discharged or released from active duty at any time during the five‑year period ending the date that employment with the taxpayer began.
c. "Qualified employee" excludes: (i) any employee who bears any of the relationships described in subparagraphs (A) to (G) of section 152(d)(2) of the Internal Revenue Code to the employer; (ii) if the employer is a corporation, any employee who owns, directly or indirectly, more than fifty percent (50%) in value of the outstanding stock of the corporation, or if the employer is an entity other than a corporation, an employee who owns, directly or indirectly, more than fifty percent (50%) of the capital and profits in the entity, as determined with the application of section 267(c) of the Internal Revenue Code; or (iii) if the employer is an estate or trust, any employee who is a fiduciary of the estate or trust, or is an individual who bears any of the relationships described in subparagraphs (A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary, or fiduciary of the estate or trust.
(b) Credit. An eligible business is allowed a credit for each eligible new job the business creates that is filled by a qualified employee. The taxpayer may not claim the credit in the taxable year in which the job is created, but may claim the credit in the following taxable year only if the job is maintained for a period of at least 12 months. The amount of the credit is equal to six and two‑tenths percent (6.2%) of the wages, upon which taxes are withheld under Article 4A of this Chapter, paid to the person that holds the eligible new job for the 12‑month period beginning when the job was first created, regardless of whether that entire period was within the taxable year. The amount of the credit allowed per eligible new job may not exceed five thousand dollars ($5,000), and the taxpayer may not claim more than two hundred thousand dollars ($200,000) in total credits under this section.
(c) Change in Ownership of Business. As used in this subsection, the term "business" means a taxpayer or an establishment. The sale, merger, consolidation, conversion, acquisition, or bankruptcy of a business, or any transaction by which an existing business reformulates itself as another business, does not create new eligibility in a succeeding business with respect to credits for which the predecessor was not eligible under this Article. A successor business may, however, take any credit or carried‑over portion of a credit that its predecessor could have taken if it had a tax liability. The acquisition of a business is a new investment that creates new eligibility in the acquiring taxpayer under this Article if any of the following conditions are met:
(1) The business closed before it was acquired.
(2) The business was required to file a notice of plant closing or mass layoff under the federal Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101, before it was acquired.
(3) The business was acquired by its employees, directly or indirectly, through an acquisition company under an employee stock option transaction or another similar mechanism. For the purpose of this subdivision, "acquired" means that as part of the initial purchase of a business by the employees, the purchase included an agreement for the employees through the employee stock option transaction or another similar mechanism to obtain one of the following:
a. Ownership of more than fifty percent (50%) of the business.
b. Ownership of not less than forty percent (40%) of the business within seven years if the business has tangible assets with a net book value in excess of one hundred million dollars ($100,000,000) and has the majority of its operations located in a development tier one area.
(d) No Double Benefit. A taxpayer that claims a credit under this section is not eligible for any other job creation credit allowed under this Chapter with respect to the same job."
SECTION 29.4.(b) G.S. 105‑129.17(a) reads as rewritten:
"(a) Tax Election. The credit credits allowed
in G.S. 105‑129.16A is and G.S. 105‑129.16K are
allowed against the franchise tax levied in Article 3 of this Chapter, the
income taxes levied in Article 4 of this Chapter, or the gross premiums tax
levied in Article 8B of this Chapter. All other credits allowed in this Article
are allowed against the franchise tax levied in Article 3 of this Chapter or
the income taxes levied in Article 4 of this Chapter. The taxpayer must elect
the tax against which a credit will be claimed when filing the return on which
the first installment of the credit is claimed. This election is binding. Any
carryforwards of a credit must be claimed against the same tax."
SECTION 29.4.(c) This act is effective for taxable years beginning on or after January 1, 2013.
EXTEND SUNSETS ON CERTAIN TAX EXPENDITURES
SECTION 29.5.(a) G.S. 105‑129.82 reads as rewritten:
§ 105‑129.82. (See notes) Sunset; studies.
(a) Sunset. This Article is repealed effective for
business activities that occur on or after January 1, 2013.January 1,
2015."
SECTION 29.5.(b) G.S. 105‑151.31 reads as rewritten:
"§ 105‑151.31. (Repealed for taxable years beginning on or after January 1, 2013) Earned income tax credit.
(a) Credit. An individual who claims for the taxable year an earned income tax credit under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to five percent (5%) of the amount of credit the individual qualified for under section 32 of the Code. A nonresident or part‑year resident who claims the credit allowed by this section 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.
(b) Credit Refundable. If the credit allowed by this section exceeds the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary must refund the excess to the taxpayer. The refundable excess is governed by the provisions governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. Section 3507 of the Code, Advance Payment of Earned Income Credit, does not apply to the credit allowed by this section. In computing the amount of tax against which multiple credits are allowed, nonrefundable credits are subtracted before refundable credits.
(c) Sunset. This section is repealed effective for
taxable years beginning on or after January 1, 2013.January 1, 2015."
SECTION 29.5.(c) G.S. 105‑129.16D reads as rewritten:
"§ 105‑129.16D. (Repealed effective for facilities placed in service on or after January 1, 2013) Credit for constructing renewable fuel facilities.
(a) Dispensing Credit. A taxpayer that constructs and installs and places in service in this State a qualified commercial facility for dispensing renewable fuel is allowed a credit equal to fifteen percent (15%) of the cost to the taxpayer of constructing and installing the part of the dispensing facility, including pumps, storage tanks, and related equipment, that is directly and exclusively used for dispensing or storing renewable fuel. A facility is qualified if the equipment used to store or dispense renewable fuel is labeled for this purpose and clearly identified as associated with renewable fuel.
(d) Sunset. This section is repealed effective for
facilities placed in service on or after January 1, 2013.January 1,
2015."
SECTION 29.5.(d) G.S. 105‑129.16F reads as rewritten:
"§ 105‑129.16F. (Repealed for taxable years beginning on or after January 1, 2013) Credit for biodiesel producers.
(a) Credit. A biodiesel provider that produces at least 100,000 gallons of biodiesel during the taxable year is allowed a credit equal to the per gallon excise tax the producer paid under Article 36C of this Chapter on the biodiesel. For the purposes of this section, "biodiesel" is liquid fuel derived in whole from agricultural products, animal fats, or wastes from agricultural products or animal fats. The credit does not apply to tax paid on diesel fuel included in a biodiesel blend. The credit may not exceed five hundred thousand dollars ($500,000) and is subject to the limitations of G.S. 105‑129.17.
(b) Sunset. This section is repealed for taxable
years beginning on or after January 1, 2013.January 1, 2015."
SECTION 29.5.(e) G.S. 105‑130.48 reads as rewritten:
"§ 105‑130.48. (Repealed for taxable years beginning on or after January 1, 2013) Credit for recycling oyster shells.
(a) Credit. A taxpayer who donates oyster shells to the Division of Marine Fisheries of the Department of Environment and Natural Resources is eligible for a credit against the tax imposed by this Part. The amount of the credit is equal to one dollar ($1.00) per bushel of oyster shells donated.
(f) Sunset. This section is repealed effective for
taxable years beginning on or after January 1, 2013. January 1, 2015."
SECTION 29.5.(f) G.S. 105‑129.75 reads as rewritten:
"§ 105‑129.75. Sunset.
This Article expires January 1, 2014, January 1,
2016, for rehabilitation projects for which an application for an
eligibility certification is submitted on or after that date."
SECTION 29.5.(g) G.S. 105‑130.47(k) reads as rewritten:
"(k) Sunset. This section is repealed for
qualifying expenses occurring on or after January 1, 2014.January 1,
2016."
SECTION 29.5.(h) G.S. 105‑130.41(d) reads as rewritten:
"(d) Sunset. This section is repealed effective
for taxable years beginning on or after January 1, 2014.January 1,
2016."
SECTION 29.5.(i) G.S. 105‑129.39 reads as rewritten:
"This Article expires for qualified rehabilitation
expenditures and rehabilitation expenses incurred on or after January 1,
2014.January 1, 2016."
SECTION 29.5.(j) G.S. 105‑151.28(d) reads as rewritten:
"(d) Sunset. This section is repealed for taxable
years beginning on or after January 1, 2013.January 1, 2015."
SECTION 29.5.(k) G.S. 105‑151.32(c) reads as rewritten:
"(c) Sunset. This section is repealed effective
for taxable years beginning on or after January 1, 2013January 1,
2015."
SECTION 29.5.(l) G.S. 105‑129.16I(c) reads as rewritten:
"(c) Sunset. This section is repealed effective
for a renewable energy property facility placed in service on or after January
1, 2014January 1, 2016."
SECTION 29.5.(m) G.S. 105‑164.14B(f) reads as rewritten:
"(f) Sunset. This section is repealed for sales
made on or after January 1, 2013 January 1, 2015."
SECTION 29.5.(n) G.S. 105‑164.14A reads as rewritten:
"§ 105‑164.14A. Economic incentive refunds.
(a) Refund. The following taxpayers are allowed an annual refund of sales and use taxes paid under this Article:
(1) (Repealed for purchases made on or after
January 1, 2013January 1, 2015) Passenger air carrier. An
interstate passenger air carrier is allowed a refund of the sales and use tax
paid by it on fuel in excess of two million five hundred thousand dollars
($2,500,000). The amount of sales and use tax paid does not include a refund
allowed to the interstate passenger air carrier under G.S. 105‑164.14(a).
This subdivision is repealed for purchases made on or after January 1, 2013.January
1, 2015.
(4) (Repealed for purchases made on or after
January 1, 2013January 1, 2015) Motorsports team or sanctioning
body. A professional motorsports racing team, a motorsports sanctioning body,
or a related member of such a team or 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 purposes of this subdivision, a "motorsports
event" includes a motorsports race, a motorsports sponsor event, and
motorsports testing. This subdivision is repealed for purchases made on or
after January 1, 2013.January 1, 2015.
(5) (Repealed for purchases made on or after January
1, 2014January 1, 2016) Professional motorsports team. A
professional motorsports racing team or a related member of a team is allowed a
refund of fifty percent (50%) of the sales and use tax paid by it in this State
on tangible personal property, other than tires or accessories, that comprises
any part of a professional motorsports vehicle. For purposes of this subdivision,
"motorsports accessories" includes instrumentation, telemetry,
consumables, and paint. This subdivision is repealed for purchases made on or
after January 1, 2014.
(6) (Repealed for purchases made on or after January
1, 2013January 1, 2015) Analytical services business. A
taxpayer engaged in analytical services in this State is allowed a refund of
sales and use tax paid by it. This subdivision is repealed for purchases made
on or after January 1, 2013. January 1, 2015. The amount of the
refund is the greater of the following:
a. Fifty percent (50%) of the eligible amount of sales and use tax paid by it on tangible personal property that is consumed or transformed in analytical service activities. The eligible amount of sales and use tax paid by the taxpayer in this State is the amount by which sales and use tax paid by the taxpayer in this State in the fiscal year exceed the amount paid by the taxpayer in this State in the 2006‑2007 State fiscal year.
b. Fifty percent (50%) of the amount of sales and use tax paid by it in the fiscal year on medical reagents.
."
SECTION 29.5.(o) G.S. 105‑277.1F(2a) reads as rewritten:
"(2a) G.S. 105‑277.1D, the inventory property tax deferral. This subdivision is effective for taxes imposed for taxable years beginning on or after July 1, 2010. This subdivision is repealed effective for taxes imposed for taxable years beginning on or after July 1, 2015. Residences receiving the property tax benefit provided by this act are not affected by the repeal of this act until the occurrence of a disqualifying event."
SECTION 29.5.(p) G.S. 105‑129.51(b) reads as rewritten:
"(b) This Article is repealed for taxable years
beginning on or after January 1, 2014.January 1, 2016."
SECTION 29.6. Section 31.4 of S.L. 2011‑145 reads as rewritten:
"NER/COMMERCE/SET REGULATORY FEE FOR UTILITIES COMMISSION
"SECTION 31.4.(a) The percentage rate to be used
in calculating the public utility regulatory fee under G.S. 62‑302(b)(2)
is twelve‑hundredths of one percent (0.12%) thirteen and one‑half
hundredths of one percent (0.135%) for each public utility's North Carolina
jurisdictional revenues earned during each quarter that begins on or after July
1, 2011.
"SECTION 31.4.(b) The electric membership corporation regulatory fee imposed under G.S. 62‑302(b1) for the 2011‑2012 fiscal year is two hundred thousand dollars ($200,000).
"SECTION 31.4.(c) This section becomes effective
July 1, 2011.July 1, 2012."
PART XXX. MISCELLANEOUS PROVISIONS
STATE BUDGET ACT APPLIES
SECTION 30.1. 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 2012‑2013 FISCAL YEAR
SECTION 30.2. Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2012‑2013 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2012‑2013 fiscal year.
EFFECT OF HEADINGS
SECTION 30.3. 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 30.4.(a) Except where expressly repealed or amended by this act, the provisions of S.L. 2011‑145 and S.L. 2011‑391 remain in effect.
SECTION 30.4.(b) Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 2012‑2013 fiscal year in S.L. 2011‑145 and S.L. 2011‑391 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 30.5. 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 30.6. Except as otherwise provided, this act becomes effective July 1, 2012.