GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

 

SENATE BILL 99

RATIFIED BILL

 

 

AN ACT to modify the current operations appropriations act of 2017 and to make other changes in the budget operations of the state.

 

The General Assembly of North Carolina enacts:

 

PART I. INTRODUCTION AND TITLE OF ACT

 

TITLE OF ACT

SECTION 1.1.  This act shall be known as the "Current Operations Appropriations Act of 2018."

 

INTRODUCTION

SECTION 1.2.  The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget in accordance with the State Budget Act. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes, and the savings shall revert to the appropriate fund at the end of each fiscal year, except as otherwise provided by law.

 

PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND

 

CURRENT OPERATIONS AND EXPANSION/GENERAL FUND

SECTION 2.1.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated, are adjusted for the fiscal year ending June 30, 2019, according to the schedule that follows. Amounts set out in parentheses are reductions from General Fund appropriations for the 2018‑2019 fiscal year:

 

Current Operations – General Fund                                                                     FY 2018‑2019

 

EDUCATION

 

Community Colleges System Office                                                                          $ 43,724,296

 

Department of Public Instruction                                                                                  59,847,276

 

Appalachian State University                                                                                                        0

East Carolina University                                                                                                                0

      Academic Affairs                                                                                                     (1,100,000)

      Health Affairs                                                                                                                          0

Elizabeth City State University                                                                                                      0

Fayetteville State University                                                                                                          0

NC A&T State University                                                                                                (150,000)

NC Central University                                                                                                                   0

NC State University

      Academic Affairs                                                                                                       1,866,000

      Agricultural Extension                                                                                                             0

      Agricultural Research                                                                                                              0

UNC‑Asheville                                                                                                                               0

UNC‑Chapel Hill                                                                                                                           0

      Academic Affairs                                                                                                       6,053,000

      Health Affairs                                                                                                            5,302,500

      AHEC                                                                                                                        4,800,000

UNC‑Charlotte                                                                                                                 (800,000)

UNC‑Greensboro                                                                                                              (225,000)

UNC‑Pembroke                                                                                                                              0

UNC‑School of the Arts                                                                                                                 0

UNC‑Wilmington                                                                                                                          0

Western Carolina University                                                                                                          0

Winston‑Salem State University                                                                                                    0

General Administration                                                                                                                  0

University Institutional Programs                                                                                  39,065,696

Related Educational Programs                                                                                           970,000

NC School of Science & Math                                                                                            508,836

Aid to Private Institutions                                                                                                3,550,002

 

Total University of North Carolina – Board of Governors                                            59,841,034

 

HEALTH AND HUMAN SERVICES

 

Department of Health and Human Services

      Central Management and Support                                                                             4,141,207

      Division of Aging & Adult Services                                                                          1,187,143

      Division of Services for the Blind/Deaf/Hard of Hearing                                              81,405

      Division of Child Development & Early Education                                             (49,699,217)

      Division of Health Service Regulation                                                                         101,501

      Division of Medical Assistance                                                                                    729,439

      Division of Mental Health, Developmental Disabilities,

            & Substance Abuse Services                                                                               3,226,446

      NC Health Choice                                                                                                             4,424

      Division of Health Benefits                                                                                            84,648

      Division of Public Health                                                                                           1,715,544

      Division of Social Services                                                                                           917,664

      Division of Vocational Rehabilitation                                                                          435,203

Total Health and Human Services                                                                               (37,074,593)

 

AGRICULTURAL, NATURAL, AND ECONOMIC RESOURCES

 

Department of Agriculture and Consumer Services                                                      19,712,218

 

Department of Commerce

      Commerce                                                                                                                (6,707,869)

      Commerce State‑Aid                                                                                                  3,535,000

 

Wildlife Resources Commission                                                                                         424,872

 

Department of Environmental Quality                                                                           18,634,776

 

Department of Labor                                                                                                           354,450

 

Department of Natural and Cultural Resources                                                             16,937,232

Department of Natural and Cultural

      Resources – Roanoke Island                                                                                                    0

 

JUSTICE AND PUBLIC SAFETY

 

Department of Public Safety                                                                                          50,529,172

 

Judicial Department                                                                                                       12,184,971

 

Judicial Department – Indigent Defense                                                                          1,213,669

 

Department of Justice                                                                                                      1,138,904

 

GENERAL GOVERNMENT

 

Department of Administration                                                                                         2,562,510

 

Office of Administrative Hearings                                                                                      107,165

 

Office of State Auditor                                                                                                        283,584

 

Office of State Controller                                                                                                    342,077

 

Bipartisan State Board of Elections and Ethics

      Enforcement                                                                                                                  105,919

 

General Assembly                                                                                                            1,335,390

 

Office of the Governor

      Office of the Governor                                                                                                    92,105

      Office of the Governor – Special Projects                                                                               0

 

Office of State Budget and Management

      Office of State Budget and Management                                                                      137,501

      OSBM – Reserve for Special Appropriations                                                            9,615,307

 

Housing Finance Agency                                                                                                               0

 

Department of Insurance                                                                                                     932,602

 

Office of Lieutenant Governor                                                                                              17,181

 

Department of Military and Veterans Affairs                                                                     234,473

 

Department of Revenue                                                                                                   1,449,705

 

Department of Secretary of State                                                                                        249,043

 

Department of State Treasurer

      State Treasurer                                                                                                                25,246

      State Treasurer – Retirement for Fire

            and Rescue Squad Workers                                                                                 2,398,780

 

DEPARTMENT OF INFORMATION TECHNOLOGY                                        10,246,786

 

RESERVES, ADJUSTMENTS, AND DEBT SERVICE

 

Public Schools Average Daily Membership Reserve                                                  (48,410,289)

NC Promise Tuition Plan                                                                                             (11,000,000)

Pending Legislation Reserve                                                                                            (500,000)

Enterprise Resource Planning                                                                                        27,000,000

Compensation Increase Reserve                                                                                    15,300,000

 

Debt Service

      General Debt Service                                                                                             (54,567,293)

      Federal Reimbursement                                                                                                           0

 

TOTAL CURRENT OPERATIONS –

      GENERAL FUND                                                                                            $ 202,253,200

 

GENERAL FUND AVAILABILITY STATEMENT

SECTION 2.2.(a)  The General Fund availability statement set out in Section 2.2(a) of S.L. 2017‑57 applies to the 2017‑2018 fiscal year only. The General Fund availability used in adjusting the 2018‑2019 budget is shown below:

 

                                                                                                                                   FY 2018‑2019

Unappropriated Balance                                                                                           $ 499,475,581

Adjustment for S.L. 2017‑204                                                                                        (8,500,000)

Revised Unappropriated Balance                                                                            490,975,581

 

Projected Over Collections FY 2017‑18                                                                      356,700,000

Projected Reversions FY 2017‑18                                                                               275,000,000

Earmarkings of Year End Fund Balance:

      Reserve for Capital Projects                                                                                (155,201,070)

      Repairs and Renovations                                                                                       (64,798,930)

 

Beginning Unreserved Fund Balance                                                                       902,675,581

 

Revenues Based on Existing Tax Structure                                                        22,960,100,000

 

Non‑tax Revenues

Investment Income                                                                                                         99,400,000

Judicial Fees                                                                                                                 232,700,000

Disproportionate Share                                                                                                163,300,000

Insurance                                                                                                                        82,700,000

Master Settlement Agreement (MSA)                                                                         139,400,000

Other Non‑Tax Revenues                                                                                            193,700,000

Subtotal Non‑tax Revenues                                                                                       911,200,000

 

Total General Fund Availability                                                                          24,773,975,581

 

Adjustments to Availability:  2018 Session

Internal Revenue Code Conformity                                                                               59,000,000

 

Other Adjustments: 2018 Session

Transfer to Savings Reserve                                                                                      (221,542,959)

Transfer to Medicaid Transformation Reserve                                                         (135,000,000)

Transfer from Department of Insurance                                                                             932,602

Transfer from Department of the State Treasurer                                                                 25,246

Subtotal Other Adjustments: 2018 Session                                                           (296,585,111)

 

Revised General Fund Availability                                                                  $ 24,477,390,470

 

Less General Fund Net Appropriations                                                                 (23,916,034,376)

 

Unappropriated Balance Remaining                                                                    $ 561,356,094

 

SECTION 2.2.(b)  Notwithstanding the provisions of G.S. 143C‑4‑3(a), the State Controller shall transfer a total of sixty‑four million seven hundred ninety‑eight thousand nine hundred thirty dollars ($64,798,930) from the unreserved fund balance to the Repairs and Renovations Reserve on June 30, 2018. Funds transferred under this section to the Repairs and Renovations Reserve are appropriated for the 2018‑2019 fiscal year and shall be used in accordance with Section 36.5 of this act.

SECTION 2.2.(c)  Pursuant to G.S. 143C‑4‑2, the State Controller shall transfer a total of two hundred twenty‑one million five hundred forty‑two thousand nine hundred fifty‑nine dollars ($221,542,959) to the Savings Reserve in the 2018‑2019 fiscal year. This transfer is not an "appropriation made by law," as that phrase is used in Section 7(1) of Article V of the North Carolina Constitution.

SECTION 2.2.(d)  Notwithstanding any provision of G.S. 143C‑4‑2 to the contrary, the State Controller shall transfer the sum of fifty‑nine million seven hundred fifty‑five thousand two hundred thirty dollars ($59,755,230) in nonrecurring funds for the 2018‑2019 fiscal year from the Savings Reserve to the State Emergency Response/Disaster Relief Reserve in the General Fund.

SECTION 2.2.(e) The State Controller shall reserve to the Medicaid Transformation Reserve from funds available in the General Fund the sum of one hundred thirty‑five million dollars ($135,000,000) in nonrecurring funds for the 2018‑2019 fiscal year. Funds reserved in the Medicaid Transformation Reserve do not constitute an "appropriation made by law," as that phrase is used in Section 7(1) of Article V of the North Carolina Constitution.

SECTION 2.2.(f)  The State Controller shall transfer the sum of one hundred fifty‑five million two hundred one thousand seventy dollars ($155,201,070) from the unreserved fund balance in the General Fund to the Project Reserve Account, established pursuant to G.S. 143C‑8‑10, on June 30, 2018.

SECTION 2.2.(g)  Subsections (b), (f), and (g) of this section become effective June 30, 2018.

 

PART III. CURRENT OPERATIONS/HIGHWAY FUND

 

CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND

SECTION 3.1.  Appropriations from the State Highway Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the fiscal year ending June 30, 2019, according to the following schedule. Amounts set out in parentheses are reductions from Highway Fund Appropriations for the 2018‑2019 fiscal year.

 

Current Operations – Highway Fund                                                                   FY 2018‑2019

 

Department of Transportation

      Administration                                                                                                        $ 2,000,000

 

Division of Highways

      Administration                                                                                                                         0

      Construction                                                                                                            (8,556,922)

      Maintenance                                                                                                          (25,799,234)

      Planning and Research                                                                                                             0

      OSHA Program                                                                                                                        0

 

State Aid to Municipalities                                                                                                            0

 

Intermodal Divisions

      Ferry                                                                                                                                         0

      Public Transportation                                                                                              (8,556,922)

      Aviation                                                                                                                      1,600,000

      Rail                                                                                                                             (300,000)

      Bicycle and Pedestrian                                                                                                             0

 

Governor's Highway Safety                                                                                                           0

 

Division of Motor Vehicles                                                                                                  80,000

 

Other State Agencies, Reserves, Transfers                                                                    12,535,390

 

Capital Improvements                                                                                                                   0

 

Total Highway Fund Appropriations                                                                $ 2,224,500,000

 

HIGHWAY FUND AVAILABILITY STATEMENT

SECTION 3.2.  Section 3.2 of S.L. 2017‑57 is repealed. The Highway Fund availability used in adjusting the 2018‑2019 fiscal year budget is shown below:

 

Highway Fund Availability Statement                                                                  FY 2018‑2019

 

Unreserved Fund Balance                                                                                                           $ 0

Estimated Revenue                                                                                                $ 2,224,500,000

Adjustment to Revenue Availability:

 

Total Highway Fund Availability                                                                      $ 2,224,500,000

 

Unappropriated Balance                                                                                                             $ 0

 

PART IV. HIGHWAY TRUST FUND APPROPRIATIONS

 

HIGHWAY TRUST FUND APPROPRIATIONS

SECTION 4.1.  Appropriations from the State Highway Trust Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the fiscal year ending June 30, 2019, according to the following schedule. Amounts set out in parentheses are reductions from Highway Trust Fund Appropriations for the 2018‑2019 fiscal year.

 

Current Operations – Highway Trust Fund                                                        FY 2018‑2019

 

Program Administration                                                                                                             $ 0

Turnpike Authority                                                                                                                        0

Transfer to Highway Fund                                                                                                             0

Debt Service                                                                                                                                  0

Strategic Prioritization Funding Plan for                                                       

      Transportation Investments                                                                                    (45,324,162)

 

Total Highway Trust Fund Appropriations                                                     $ 1,540,500,000

 

HIGHWAY TRUST FUND AVAILABILITY STATEMENT

SECTION 4.2.  Section 4.2 of S.L. 2017‑57 is repealed. The Highway Trust Fund availability used in adjusting the 2018‑2019 fiscal year budget is shown below:

 

Highway Trust Fund Availability                                                                          FY 2018‑2019

 

Unreserved Fund Balance                                                                                                           $ 0

Estimated Revenue                                                                                                $ 1,540,500,000

Adjustment to Revenue Availability:

 

Total Highway Trust Fund Availability                                                            $ 1,540,500,000

 

Unappropriated Balance                                                                                                             $ 0

 

PART V. OTHER APPROPRIATIONS

 

APPROPRIATION OF RECEIPTS INCREASED DUE TO SALARY AND BENEFITS INCREASES

SECTION 5.1.(a)  Any receipts that are required to be used to pay the legislatively mandated salary increases and employee benefits increases provided in this act are appropriated up to the actual amounts received for the 2018‑2019 fiscal year.

SECTION 5.1.(b)  Receipts collected in a fiscal year in excess of the amounts appropriated by this section shall remain unexpended and unencumbered until appropriated by the General Assembly, unless the expenditure of overrealized receipts in the fiscal year in which the receipts were collected is authorized by the State Budget Act. Overrealized receipts are appropriated in the amounts necessary to implement this subsection.

 

LOTTERY COMMISSION BENEFIT LIABILITIES

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

"(a)      The funds remaining in the North Carolina State Lottery Fund after receipt of all revenues to the Lottery Fund and after accrual of all obligations of the Commission for prizes and expenses expenses, excluding balance sheet adjustments or prior‑period expense adjustments necessary to implement changes in accounting methods or accounting standards, shall be considered to be the net revenues of the North Carolina State Lottery Fund. The net revenues of the North Carolina State Lottery Fund shall be transferred at least four times a year to the Education Lottery Fund, which shall be created in the State treasury."

 

NEEDS‑BASED SCHOOL CAPITAL AND LOTTERY CHANGES

SECTION 5.3.(a)  Section 5.3 of S.L. 2017‑57, as amended by Section 1.1(a) of S.L. 2017‑187 and Section 1.1 of S.L. 2017‑212, reads as rewritten:

"SECTION 5.3.(a)  The appropriations made from the Education Lottery Fund for the 2017‑2019 fiscal biennium are as follows:

                                                                                    FY 2017‑2018                       FY 2018‑2019

 

Noninstructional Support Personnel                          $383,888,897                          $385,914,455

Prekindergarten Program                                               78,252,110                              78,252,110

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

Needs‑Based Public School Capital Fund                     30,000,000          75,000,000117,320,354

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

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

LEA Transportation                                                       43,277,192              1,386,09021,386,090

 

TOTAL APPROPRIATION                                  $676,612,932   $681,747,388$744,067,742

"SECTION 5.3.(d)  It is the intent of the General Assembly to increase the amount of North Carolina Education Lottery net lottery revenue collected that is dedicated to assist local governments in meeting local school capital needs from sixteen and nine‑tenths percent (16.9%) of net lottery revenue collected in the 2016‑2017 fiscal year to forty percent (40%) of net lottery revenue collected no later than the 2028‑2029 fiscal year. To that end, there is created the Needs‑Based Public School Capital Fund to be administered by the Superintendentas an interest‑bearing, nonreverting special fund in the Department of Public Instruction. The State Treasurer shall be the custodian of the Needs‑Based Public School Capital Fund and shall invest its assets in accordance with the provisions of G.S. 147‑69.2 and G.S. 147‑69.3. The Needs‑Based Public School Capital Fund shall be used to award grants to counties designated as a development tier one area or a development tier two area, as defined by G.S. 143B‑437.08, to assist with their critical public school building capital needs. The Superintendent of Public Instruction shall award grants to counties in accordance with the following priorities:

(1)        Counties designated as development tier one areas.

(2)        Counties with greater need and less ability to generate sales tax and property tax revenue.

(3)        Counties with a high debt‑to‑tax revenue ratio.

(4)        The extent to which a project will address critical deficiencies in adequately serving the current and future student population.

"SECTION 5.3.(e)  Grant funds awarded under this section shall be subject to a matching requirement from the recipient county as follows:

(1)        For a county designated as a development tier one area, the grant shall not exceed three dollars ($3.00) in grant funds for every one dollar ($1.00) provided by the county. Grant funds awarded to a county designated as a development tier one county area shall not exceed fifteen million dollars ($15,000,000).

(2)        For a county designated as a development tier two area, the grant shall not exceed one dollar ($1.00) for every one dollar ($1.00) in grant funds provided by the county. Grant funds awarded to a county designated as a tier two county area shall not exceed ten million dollars ($10,000,000).

Grant funds shall be used for the construction of new school buildings only. Grant funds shall not be used for real property acquisition or for operational lease agreements, except that grant funds may be used for projects when a pre-development agreement for an operation lease was entered into on or before June 30, 2017. Notwithstanding subdivision (2) of this subsection, grant funds shall only be awarded to development tier one counties until the 2020‑2021 fiscal year. acquisition. Grant funds shall be disbursed in a series of payments based on the progress of the project. To obtain a payment, the grantee shall submit a request for payment along with documentation of the expenditures for which the payment is requested and evidence that the matching requirement contained in subsection (b) of this section has been met. Grant funds shall not be awarded to any county that has received over an aggregate amount exceeding eight million seven hundred fifty thousand dollars ($8,750,000) in funds from the Public School Building Capital Fund from the 2012‑2013 fiscal year to the 2016‑2017 fiscal year. No county may receive grant funds under this section more than once every five years. No portion of grant funds may be used to acquire a Leadership in Energy and Environmental Design (LEED) certification.

"SECTION 5.3.(e1)  A county receiving grant funds pursuant to this section shall enter into an agreement with the Department of Public Instruction detailing the use of grant funds. The agreement shall contain at least all of the following:

(1)        A requirement that the grantee seek planning assistance and plan review from the School Planning Section of the Department of Public Instruction.

(2)        A progress payment provision governing disbursements to the county for the duration of the school construction project based upon the construction progress and documentation satisfactory to the Department that the matching requirement in subsection (e) of this section has been met.

(3)        A provision requiring periodic reports to the Department of Public Instruction on the use of disbursed grant funds and the progress of the school construction project.

(4)        A requirement that matching funds paid by the county pursuant to this section must be derived from non‑State and nonfederal funds.

"SECTION 5.3.(e2)  Notwithstanding the new construction requirement in subsection (e) of this section, a county may utilize grant funds for a lease agreement if all of the following criteria are met:

(1)        Ownership of the subject property on which the leased school is constructed shall be retained by the county.

(2)        The lease agreement shall include a repairs and maintenance provision that requires the landlord to bear the entire expense of all repairs, maintenance, alterations, or improvements to the basic structure, fixtures, appurtenances, and grounds of the subject property for the term of the lease.

(3)        The lease agreement shall be for a term of at least 15 years and no more than 25 years.

(4)        In lieu of the progress payment requirement provided in subsection (e) of this section, a county that has entered into a lease agreement shall provide a copy of the lease agreement to the Department and shall be periodically reimbursed upon submission of documentation satisfactory to the Department that the matching requirement of this section has been met.

For the purposes of this section, the term "lease agreement" shall include any ancillary agreements or predevelopment agreements entered into in anticipation of or in accordance with a lease. A lease agreement entered into pursuant to this subsection shall be subject to the requirements of Article 8 of Chapter 159 of the General Statutes. In determining whether the lease agreement is necessary or expedient pursuant to G.S. 159‑151(a)(1) and G.S. 159‑151(b)(1), the Local Government Commission may consider any other relevant construction and financing methods available to the county."

SECTION 5.3.(b)  G.S. 18C‑164 reads as rewritten:

"§ 18C‑164.  Transfer of net revenues.

(b2)      The Office of State Budget and Management shall transfer any net revenues remaining in the Education Lottery Fund after the appropriations made pursuant to subsection (b1) of this section to the Education Lottery Reserve Fund, a special revenue fund, necessary to maintain a minimum balance of twenty‑five million dollars ($25,000,000).in an amount equal to five percent (5%) of net revenue credited to the Education Lottery Fund from the State Lottery Fund during the previous fiscal year.

(b3)      Any net revenues remaining after appropriation pursuant to subsection (b1) of this section and transfer pursuant to subsection (b2) of this section are hereby appropriated to the Needs‑Based Public School Capital Fund.

(b4)      Notwithstanding subsection (b2) of this section, the minimum balance of the Education Lottery Reserve Fund may be less than twenty‑five million dollars ($25,000,000) the amount equal to five percent (5%) of net revenue credited to the Education Lottery Fund from the State Lottery Fund during the previous fiscal year if funds are necessary to meet the amount of net revenues appropriated pursuant to subsection (b1) of this section.

…."

SECTION 5.3.(c)  G.S. 18C‑132 is amended by adding a new subsection to read:

"(m)     An eligible person serving on active military duty in any branch of the United States Armed Forces during a war or national emergency declared in accordance with federal law may submit a delayed claim for a lottery prize. The claim shall be submitted to the Commission in writing no later than 540 days after the date the online game prize was announced or the instant game has closed. For the purposes of this subsection, the term "eligible person" means a person who has a valid claim for a prize in a lottery game and meets either of the following criteria:

(1)        While on active military duty in this State, is transferred out of this State as the result of a war or national emergency declared in accordance with federal law before the applicable time period for claiming a lottery prize has elapsed. For the purposes of this subdivision, the term "active military duty" means a person who is covered by the Servicemembers Civil Relief Act, 50 U.S.C. App. § 501, et seq., as amended, or the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4301, et seq., as amended.

(2)        While serving in the Armed Forces Reserves in this State, is transferred out of this State as the result of a war or national emergency declared in accordance with federal law before the applicable time period for claiming a lottery prize has elapsed."

SECTION 5.3.(d)  Net revenues transferred from the State Lottery Fund in excess of the amounts appropriated from the Education Lottery Fund in the 2016‑2017 fiscal year shall be considered net revenue credited to the Education Lottery Fund in the 2017‑2018 fiscal year.

SECTION 5.3.(e)  G.S. 147‑69.2(a) is amended by adding a new subdivision to read:

"(17l)   The Needs‑Based Public School Capital Fund."

SECTION 5.3.(f)  Subsection (a) of this section applies to lease agreements entered into on or after the effective date of this act.

 

CIVIL PENALTY AND FORFEITURE FUND

SECTION 5.4.  Section 5.4(a) of S.L. 2017‑57 reads as rewritten:

"SECTION 5.4.(a)  Appropriations are made from the Civil Penalty and Forfeiture Fund for the fiscal biennium ending June 30, 2019, as follows:

 

                                                                              FY 2017‑2018                             FY 2018‑2019

School Technology Fund                                          $18,000,000                               $18,000,000$0

Drivers Education                                                       27,393,768                                 27,393,768

State Public School Fund                                         134,784,022           128,341,640178,341,640

Transportation Adjustment                                                                                           15,000,000

Total Appropriation                                             $180,177,790                             $173,735,408$220,735,408"

 

INDIAN GAMING EDUCATION REVENUE FUND

SECTION 5.5.  Section 5.5 of S.L. 2017‑57 reads as rewritten:

"SECTION 5.5. Notwithstanding G.S. 143C‑9‑7, the sum of six million dollars ($6,000,000) in each year of the 2017‑2019 2017‑2018 fiscal biennium year and the sum of nineteen million dollars ($19,000,000) in the 2018‑2019 fiscal year is transferred from the Indian Gaming Education Revenue Fund to the Department of Public Instruction, Textbooks, and Digital Resources Allotment."

 

DISASTER RECOVERY – 2018

SECTION 5.6.(a)  Transfer/Appropriation of Certain Unexpended DRA 2016 Funds. – Subdivision (12) of Section 4.1 of S.L. 2016‑124 is repealed. All unexpended and unencumbered funds allocated to the Department of Commerce by subdivision (12) of Section 4.1 of S.L. 2016‑124 are transferred to the State Emergency Response/Disaster Relief Reserve in the General Fund described in Section 2.2 of this act.

SECTION 5.6.(b)  Appropriations. – The sixty million dollars ($60,000,000) transferred to the State Emergency Response/Disaster Relief Reserve in the General Fund as required by Section 2.2 of this act and subsection (a) of this section are appropriated as follows:

(1)        Federal match. – Fourteen million five hundred thousand dollars ($14,500,000) to the State Emergency Response and Disaster Relief Fund to provide State match for federal disaster assistance programs.

(2)        Risk management. – To the following agencies and entities for risk management activities:

a.         Three million six hundred thousand dollars ($3,600,000) to the Department of Environmental Quality for continuation of landslide mapping.

b.         Two hundred fifty thousand dollars ($250,000) to the Department of Public Safety, Division of Emergency Management to support NC 2‑1‑1 activities.

c.         Two million eight hundred thirty‑five thousand two hundred twenty‑four dollars ($2,835,224) to the Department of Public Safety, Division of Emergency Management, for acquiring, installing, and monitoring flood warning systems and modeling, mapping, and real‑time display of inundation zones and impact assessments for dams.

d.         Two million three hundred thousand dollars ($2,300,000) to the Department of Public Safety, Division of Emergency Management for the North Carolina Search and Rescue Program under Article 6 of Chapter 166A of the General Statutes. One hundred thousand dollars ($100,000) shall be used for equipment and training to support search and rescue engineers.

e.         Seven hundred thousand dollars ($700,000) to the Department of Agriculture and Consumer Services to purchase Forest Service emergency response equipment.

f.          One hundred thousand dollars ($100,000) to the Department of Public Safety, Division of Emergency Management, to be allocated to Stanly County to be used to provide broadband infrastructure for the training facility located at the Stanly County Airport and used by State agencies for emergency preparedness.

(3)        Infrastructure. – Ten million dollars ($10,000,000) to the Office of State Budget and Management to be transferred to the Golden L.E.A.F. (Long‑Term Economic Advancement Foundation), Inc., a nonprofit corporation, to provide infrastructure grants to local governments and to 501(c)(3) nonprofit corporations for assistance and relief from Hurricane Matthew, the western wildfires, and Tropical Storms Julia and Hermine. For purposes of this subdivision, infrastructure includes nonresidential buildings that serve the public, water, sewer, sidewalks, storm drainage, and other, similar projects. Funds shall be used for the following:

a.         To repair, replace, secure, or demolish existing infrastructure.

b.         To repair or replace existing tangible personal property.

c.         To replace or improve existing infrastructure to support hazard mitigation.

d.         To construct infrastructure to support (i) hazard mitigation and (ii) the development of new residential structures in areas outside the 100‑year floodplain.

(4)        Management and oversight. – Seven hundred thousand dollars ($700,000) to the Office of State Budget and Management to provide grants‑in‑aid to the towns of Princeville and Fair Bluff for contractual services related to management  and use of disaster recovery funds.

(5)        Housing. – Twenty‑five million fourteen thousand seven hundred seventy‑six dollars ($25,014,776) to the Department of Public Safety, Division of Emergency Management, for the following housing‑related matters:

a.         To be used for housing elevation, acquisition, and mitigation reconstruction for homes not covered by Hazard Mitigation Grant Program.

b.         To provide State Acquisition Relocation funds, which enable low‑ to moderate‑income homeowners to purchase homes.

c.         To provide flood insurance subsidies.

SECTION 5.6.(c)  Applicability. – Subdivisions (1), (3), (4), and (5) and sub‑subdivision c. of subdivision (2) of subsection (b) of this section apply in the North Carolina counties that were any of the following:

(1)        Declared a major disaster by the President of the United States under the Stafford Act (P.L. 93‑288) as a result of Hurricane Matthew, wildfires in the western part of the State, Tropical Storm Julia, or Tropical Storm Hermine.

(2)        Part of the emergency area set forth in any of the following gubernatorial executive orders: Executive Order No. 97 (September 1, 2016), Executive Order No. 103 (September 22, 2016), Executive Order No. 107 (October 3, 2016), Executive Order No. 115 (November 16, 2016), or Executive Order No. 116.

SECTION 5.6.(d)  Implementation. – The following actions and policy shall be taken to implement subsection (b) of this section:

(1)        The Governor may establish part‑time and full‑time personnel positions to implement this section. Positions established under this section are time limited and exempt from the State Human Resources Act.

(2)        The Governor shall establish advisory councils to advise relevant State agencies on hurricane relief and recovery efforts and to ensure input from representatives of affected communities and groups.

(3)        If a person's home is relocated or purchased with funds from the Hazard Mitigation Grant Program or the State Acquisition and Relocation Fund, the State Emergency Response and Disaster Relief Fund is subrogated to the person's rights under any insurance coverage for the damage to the home and any monies received from the insurance coverage shall be paid to the State Emergency Response and Disaster Relief Fund. The Division of Emergency Management shall ensure that those potentially affected by this section are notified of, and adhere to, its requirements.

(4)        It is the intent of the General Assembly to continue to review the funds appropriated by Congress and to consider actions needed to address any remaining unmet needs. It is also the intent of the General Assembly to review the adequacy of the measures funded in this section, S.L. 2016‑124, and S.L. 2017‑119.

(5)        No State funds appropriated in this section may be expended for the construction of any new residence within the 100‑year floodplain unless the construction is in an area regulated by a unit of local government pursuant to a floodplain management ordinance and the construction complies with the ordinance. As used in this section, "100‑year floodplain" means any area subject to inundation by a 100‑year flood, as indicated on the most recent Flood Insurance Rate Map prepared by the Federal Emergency Management Agency under the National Flood Insurance Program.

(6)        Homeowners in the 100‑year floodplain who receive homeowner's housing assistance pursuant to this section shall have in effect federal flood insurance, if available, as a precondition to receipt of State homeowner's housing assistance for losses resulting from future flooding.

SECTION 5.6.(e)  Limitation. – The Governor may not use the funds described in this section to make budget adjustments under G.S. 143C‑6‑4 or to make reallocations under G.S. 166A‑19.40(c). Nothing in this section shall be construed to prohibit the Governor from exercising the Governor's authority under these statutes with respect to funds other than those described in this section.

The Governor shall also ensure that funds allocated in subdivisions (1), (3), (4), and (5) and sub‑subdivision c. of subdivision (2) of subsection (b) of this section are expended in a manner that does not adversely affect any person's or entity's eligibility for federal funds that are made available, or that are anticipated to be made available, as a result of Hurricane Matthew, the western North Carolina wildfires, or Tropical Storms Julia and Hermine. The Governor shall also, to the extent practicable, avoid using State funds to cover costs that will be, or likely will be, covered by federal funds.

SECTION 5.6.(f)  No Reversion of Funds. – Funds described in subdivisions (1), (3), (4), and (5) and sub‑subdivision c. of subdivision (2) of subsection (b) of this section shall remain available to implement the provisions of this section until the General Assembly directs the reversion of any unexpended and unencumbered funds and G.S. 143C‑6‑23(f1)(1) shall not apply to those funds.

SECTION 5.6.(g)  Reporting Requirements. – The Office of State Budget and Management shall report to the chairs of the House of Representatives and Senate Appropriations Committees and to the Fiscal Research Division of the General Assembly on the implementation of this section on a monthly basis and shall also provide any additional reports or information requested by the Fiscal Research Division. Each report required by this section shall include information about all funds expended or encumbered pursuant to this section as of the date of the report, regardless of which State agency, federal agency, or non‑State entity administers the funds. Non‑State entities that administer or receive any funds appropriated in this section shall assist and fully cooperate with the Office of State Budget and Management in meeting the Office's obligations under this section.

SECTION 5.6.(h)  Expand Uses/Infrastructure Funding/DRA 2016. – Effective December 15, 2016, subdivision (7) of Section 4.1 of S.L. 2016‑124 reads as rewritten:

"SECTION 4.1. In addition to any other funds appropriated during the 2016‑2017 fiscal year, there is appropriated from the Savings Reserve Account to the General Fund the sum of one hundred million nine hundred twenty‑eight thousand three hundred seventy dollars ($100,928,370) in nonrecurring funds for the 2016‑2017 fiscal year and there is appropriated from the unappropriated General Fund balance the sum of one hundred million dollars ($100,000,000) in nonrecurring funds for the 2016‑2017 fiscal year. These funds shall be allocated as follows:

(7)        $20,000,000 shall be allocated to The Golden L.E.A.F. (Long‑Term Economic Advancement Foundation), Inc., a nonprofit corporation, to provide grants to local governments to construct new infrastructure required to support the development of new residential structures in areas outside the 100‑year floodplain or repair or replace repair, replace, secure, or demolish existing infrastructure. For purposes of this subdivision, infrastructure includes nonresidential buildings that serve the public, water, sewer, sidewalks, storm drainage, and other, similar projects that provide assistance or relief for Hurricane Matthew."

SECTION 5.6.(i)  Expand Uses/Infrastructure Funding/DRA 2017. – Effective July 18, 2017, subdivision (2) of Section 1 of S.L. 2017‑119 reads as rewritten:

"SECTION 1. If Senate Bill 257 of the 2017 Regular Session becomes law, one hundred million dollars ($100,000,000) reserved as Supplemental Disaster Recovery Funds in that act shall be allocated as follows:

(2)        Infrastructure. – Thirty million dollars ($30,000,000) to the Golden L.E.A.F. (Long‑Term Economic Advancement Foundation), Inc., a nonprofit corporation, to provide grants to local governments and to 501(c)(3) nonprofit corporations for assistance and relief from Hurricane Matthew, the western wildfires, and Tropical Storms Julia and Hermine. For purposes of this subdivision, infrastructure includes nonresidential buildings that serve the public, water, sewer, sidewalks, storm drainage, and other, similar projects. Funds shall be used for the following:

a.         To repair or replace existing infrastructure and tangible personal property.repair, replace, secure, or demolish existing infrastructure.

a1.       To repair or replace existing tangible personal property.

b.         To replace or improve existing infrastructure to support hazard mitigation.

c.         To construct infrastructure to support (i) hazard mitigation and (ii) the development of new residential structures in area outside the 100‑year floodplain."

SECTION 5.6.(j)  Deduction/Adjusted Gross Income. – Effective for taxable years beginning on or after January 1, 2017, G.S. 105‑153.5(b) is amended by adding a new subdivision to read:

"(13)    The amount paid to the taxpayer during the taxable year from the State Emergency Response and Disaster Relief Reserve Fund for hurricane relief or assistance, but not including payments for goods or services provided by the taxpayer."

SECTION 5.6.(k)  Deduction/State Net Income. – Effective for taxable years beginning on or after January 1, 2017, G.S. 105‑130.5(b) is amended by adding a new subdivision to read:

"(29)    To the extent included in federal taxable income, the amount paid to the taxpayer during the taxable year from the State Emergency Response and Disaster Relief Reserve Fund for hurricane relief or assistance, but not including payments for goods or services provided by the taxpayer."

SECTION 5.6.(l)  Extend Immunity to Professional Land Surveyors. – G.S. 89C‑19.1 reads as rewritten:

"§ 89C‑19.1.  Engineer Engineer or professional land surveyor who volunteers during an emergency or disaster; qualified immunity.

(a)        A professional engineerlicensed professional or any other individual working under the direct supervision of a licensed professional who voluntarily, without compensation, provides structural, electrical, mechanical, or other engineeringengineering services or land surveying services at the scene of a declared disaster or emergency, declared under federal law or in accordance with the provisions of Article 1A of Chapter 166A of the General Statutes, at the request of a public official, law enforcement official, public safety official, or building inspection official, acting in an official capacity, shall not be liable for any personal injury, wrongful death, property damage, or other loss caused by the professional engineer's licensed professional's acts or omissions in the performance of the engineering services.

(b)        The immunity provided in subsection (a) of this section for professional engineers applies only to an engineering service:

(1)        For any structure, building, piping, or other engineered system, either publicly or privately owned.

(2)        That occurs within 45 days after the declaration of the emergency or disaster, unless the 45‑day immunity period is extended by an executive order issued by the Governor under the Governor's emergency executive powers.

(b1)      The immunity provided in subsection (a) of this section for professional land surveyors applies only to land surveying services that occur within 45 days after the declaration of the emergency or disaster, unless the 45‑day immunity period is extended by an executive order issued by the Governor under the Governor's emergency executive powers.

(c)        The immunity provided in subsection (a) of this section does not apply if it is determined that the personal injury, wrongful death, property damage, or other loss was caused by the gross negligence, wanton conduct, or intentional wrongdoing of the professional engineer, licensed professional, or arose out of the operation of a motor vehicle.

(d)       As used in this section:

(1)        "Building inspection official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate building inspection in the jurisdiction in which the emergency or disaster is declared.

(2)        "Law enforcement official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate law enforcement in the jurisdiction in which the emergency or disaster is declared.

(2a)      "Licensed professional" means any professional engineer or professional land surveyor.

(3)        "Public official" means any federal, State, or locally elected official with overall executive responsibility in the jurisdiction in which the emergency or disaster is declared.

(4)        "Public safety official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate public safety in the jurisdiction in which the emergency or disaster is declared."

SECTION 5.6.(m)  Subsection (l) of this section is effective July 1, 2018, and applies to services rendered on or after that date.

SECTION 5.6.(n)  The Joint Legislative Program Evaluation Oversight Committee shall amend the 2018‑2019 Program Evaluation Division (PED) work plan to direct the Division to study implementation of S.L. 2016‑124 and S.L. 2017‑119 (2016/2017 Disaster Recovery Acts). In particular, the Division shall examine the State's current structure for distributing both State and federal funds, including federal Community Development Block Grant – Disaster Recovery funds, and determine whether modifications to the structure would result in increased time efficiencies in distributing funds to qualified recipients. The Division shall also examine the current reporting requirements in this section and the 2016/2017 Disaster Recovery Acts to determine what modifications would provide the General Assembly with more complete and integrated information regarding the status of disaster recovery. On or before March 15, 2019, PED shall submit a report to the Joint Legislative Program Evaluation Oversight Committee, the chairs of the Senate Appropriations/Base Budget Committee, the chairs of the House of Representatives Committee on Appropriations, and the Fiscal Research Division.

 

PART VI. GENERAL PROVISIONS

 

ESTABLISHING OR INCREASING FEES

SECTION 6.1.(a)  Notwithstanding G.S. 12‑3.1, an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee to the level authorized or anticipated in this act.

SECTION 6.1.(b)  Notwithstanding G.S. 150B‑21.1A(a), an agency may adopt an emergency rule in accordance with G.S. 150B‑21.1A to establish or increase a fee as authorized by this act if the adoption of a rule would otherwise be required under Article 2A of Chapter 150B of the General Statutes.

 

NON‑STATE ENTITIES/REPORT AND REVERSION REQUIREMENTS

SECTION 6.2.(a)  Definition. – For purposes of this section, the term "non‑State entity" is as defined in G.S. 143C‑1‑1.

SECTION 6.2.(b)  Reporting Requirement. – Unless required to report on the use of funds under another provision of law, and by no later than June 30, 2019, each non‑State entity receiving expansion funds appropriated in this act or S.L. 2017‑57 for the 2018‑2019 fiscal year shall submit a report to the Office of State Budget and Management and the Fiscal Research Division of the General Assembly that provides all of the following information:

(1)        A description of how the funds are used or are to be used, including outcomes and specific deliverables achieved.

(2)        The amount of State funds received and expended during the 2018‑2019 fiscal year.

(3)        The amount of State funds expended for administrative purposes during the 2018‑2019 fiscal year, including the amount of State funds expended for salaries and benefits.

(4)        For each employee, the amount of State funds used for the employee's annual salary.

SECTION 6.2.(c)  Funds Shall Not Revert. – Notwithstanding the date set forth in G.S. 143C‑6‑23(f1)(1), expansion funds from the net General Fund appropriations or allocations in this act to a non‑State entity shall not be subject to the return requirement set forth in G.S. 143C‑6‑23(f1)(1) until June 30, 2020.

 

BUDGET ACCOUNTABILITY AND TRANSPARENCY REFORM INITIATIVE

SECTION 6.3.(a)  Finding and Purpose. – The General Assembly finds that the State budget is its central policy document and primary vehicle for directing the provision of programs and services to the citizens of the State. As such, the State's budget must be clear, transparent, and credible if it is to serve as a basis of accountability to its citizens. Therefore, it is the intent of the General Assembly to provide flexibility and support to the Governor in continuing efforts to effectuate the necessary changes to the structure and presentation of the State budget. The purpose of the Budget Accountability and Transparency Reform Initiative established by this section is to ensure the highest level of transparency for meaningful review of the State budget by all citizens of the State.

SECTION 6.3.(b)  Base Budget Reform Plan Pilot. – The Office of State Budget and Management and the Department of Public Safety (Department) shall develop jointly and execute a base budget reform plan for the Department that ensures all of the following:

(1)        Strict adherence to Chapter 143C of the General Statutes, the State Budget Act.

(2)        Realignment of the Department's expenditures and revenues in a clear and logical manner.

(3)        Presentation of a comprehensive, accurate, and reliable account of all Department expenditures and revenues.

(4)        An annual base budget document for the Department that:

a.         Is presented in a format that promotes effective decision making, accountability, and oversight; and

b.         Provides detailed budget information that can be understood at all levels of State government and by members of the general public.

SECTION 6.3.(c)  Realignments. – Effective with the development and presentation of the Governor's 2019‑2021 recommended biennial base budget, the Office of State Budget and Management may realign the various line items of expenditure and revenue in the Department's budget. The Department, with the approval of the Office of State Budget and Management, shall build its line‑item budgets, including elimination of vacant positions to more closely align with actual requirements and anticipated receipts for each of the programs and purposes contained in the Governor's Recommended Base Budget for the Department. The Department must budget receipts based on historical trends. Under no circumstances may the Department move receipts between programs and purposes. The Department's newly aligned line‑item budgets shall be submitted to the General Assembly as part of the Governor's Recommended Base Budget for the 2019‑2021 fiscal biennium.

SECTION 6.3.(d)  Authorization to Eliminate Positions. – Notwithstanding any State law, rule, regulation, or directive to the contrary, including any order issued by the Governor or the Governor's designee, vacant positions in the Department may be eliminated for the purpose of realigning the Department's budget only upon the express authorization of the General Assembly in this act or a subsequent enactment.

SECTION 6.3.(e)  Reporting. – The Office of State Budget and Management shall report its progress in developing the realigned base budget required in subsection (a) of this section to the chairs of the House of Representatives Appropriations Committee, the chairs of the Senate Appropriations/Base Budget Committee, and the Fiscal Research Division of the General Assembly no later than October 1, 2018. The Office of State Budget and Management shall submit the newly realigned base budget to the Fiscal Research Division by January 1, 2019.

 

RESTORE DEBT SERVICE FUNDS FOR WILMINGTON HARBOR

SECTION 6.4.(a)  During the 2018‑2019 fiscal year, the Office of State Budget and Management (OSBM) shall retire the State's debt owed to the federal government for the Wilmington Harbor project.

SECTION 6.4.(b)  To comply with the requirement set forth in subsection (a) of this section, OSBM shall (i) use the sum of twenty‑two million dollars ($22,000,000) appropriated in the 2016‑2017 fiscal year and currently held in reserve and (ii) restore the sum of sixteen million dollars ($16,000,000) that reverted to the General Fund on June 30, 2017.

SECTION 6.4.(c)  No later than 15 days from the date the requirements of subsections (a) and (b) of this section are met, OSBM shall submit a report to the Joint Legislative Commission on Governmental Operations confirming its compliance and detailing the steps taken by OSBM in complying.

 

PART VII. PUBLIC SCHOOLS

 

ADJUSTMENT FOR FUNDS FOR CHILDREN WITH DISABILITIES

SECTION 7.1.  Section 7.1(a) of S.L. 2017‑57 reads as rewritten:

"SECTION 7.1.(a)  The State Board of Education shall allocate additional funds for children with disabilities on the basis of four thousand one hundred twenty‑five dollars and twenty‑seven cents ($4,125.27) per child for fiscal yearsthe 2017‑2018 and 2018‑2019. Eachfiscal year. For the 2017‑2018 fiscal year, each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) twelve and seventy‑five hundredths percent (12.75%) of its 2017‑2018 allocated average daily membership in the local school administrative unit.

The State Board of Education shall allocate additional funds for children with disabilities on the basis of four thousand four hundred forty‑two dollars and thirty‑four cents ($4,442.34) per child for the 2018‑2019 fiscal year. For the 2018‑2019 fiscal year, each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) twelve and seventy‑five hundredths percent (12.75%) of its 2018‑2019 allocated average daily membership in the local school administrative unit.

The dollar amounts allocated under this section for children with disabilities shall also be adjusted in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities."

 

ADJUSTMENT FOR FUNDS FOR ACADEMICALLY GIFTED CHILDREN

SECTION 7.2.  Section 7.2(a) of S.L. 2017‑57 reads as rewritten:

"SECTION 7.2.(a)  The State Board of Education shall allocate additional funds for academically or intellectually gifted children on the basis of one thousand three hundred fourteen dollars and fifty‑six cents ($1,314.56) per child for fiscal yearsthe 2017‑2018 and 2018‑2019. A fiscal year. For the 2017‑2018 fiscal year, a local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2017‑2018 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit.

The State Board of Education shall allocate additional funds for academically or intellectually gifted children on the basis of one thousand three hundred thirty‑nine dollars and fourteen cents ($1,339.14) per child for the 2018‑2019 fiscal year. For the 2018‑2019 fiscal year, a local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2018‑2019 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 be adjusted in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve academically or intellectually gifted children."

 

ADJUST SUPPLEMENTAL FUNDING IN LOW‑WEALTH COUNTIES

SECTION 7.3.  Section 7.3(h) of S.L. 2017‑57, as amended by Section 2.19 of S.L. 2017‑197, reads as rewritten:

"SECTION 7.3.(h)  Counties Containing a Base of the Armed Forces. – Notwithstanding any other provision of this section, for the 2017‑2019 fiscal biennium,2017‑2018 fiscal year, a county containing a base of the Armed Forces of the United States that has an average daily membership of more than 23,000 students shall receive whichever is the higher amount in each the 2017‑2018 fiscal year as follows: either the amount of supplemental funding the county received as a low‑wealth county in the 2012‑2013 fiscal year or the amount of supplemental funding the county is eligible to receive as a low‑wealth county pursuant to the formula for distribution of supplemental funding under the other provisions of this section.

Notwithstanding any other provision of this section, for the 2018‑2019 fiscal year, counties containing a base of the Armed Forces of the United States that have an average daily membership of more than 17,000 students shall receive whichever is the higher amount in the 2018‑2019 fiscal year as follows: either the amount of supplemental funding the county received as a low‑wealth county in the 2012‑2013 fiscal year or the amount of supplemental funding the county is eligible to receive as a low‑wealth county pursuant to the formula for distribution of supplemental funding under the other provisions of this section."

 

ADJUST SMALL COUNTY SCHOOL SYSTEM SUPPLEMENTAL FUNDING

SECTION 7.4.  Section 7.4 of S.L. 2017‑57 reads as rewritten:

"SECTION 7.4.(a)  Allotment Schedule for the 2017‑2019 2017‑2018 Fiscal Biennium.Year. – Except as otherwise provided in subsection (d) of this section, each eligible county school administrative unit shall receive a dollar allotment according to the following schedule:

Allotted ADM                             Small County Allotment

                                 0‑600                                       $1,710,000

                          601‑1,300                                       $1,820,000

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

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

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

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

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

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

"SECTION 7.4.(a1)  Allotment Schedule for the 2018‑2019 Fiscal Year. – Except as otherwise provided in subsection (d) of this section, each eligible county school administrative unit shall receive a dollar allotment according to the following schedule:

Allotted ADM                             Small County Allotment

                                 0‑600                                       $1,710,000

                          601‑1,300                                       $1,820,000

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

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

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

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

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

                       2,801‑3,300                                       $1,548,000

"SECTION 7.4.(c)  Phase‑Out Provision for the 2018‑2019 Fiscal Year. – If a local school administrative unit becomes ineligible for funding under the schedule in subsection (a)(a1) of this section in the 2018‑2019 fiscal year, funding for that unit shall be phased out over a five‑year period. Funding for such local school administrative units shall be reduced in equal increments in each of the five years after the unit becomes ineligible. Funding shall be eliminated in the fifth fiscal year after the local administrative unit becomes ineligible.

Allotments for eligible local school administrative units under this subsection shall not be reduced by more than twenty percent (20%) of the amount received in fiscal year 2017‑2018 in any fiscal year. A local school administrative unit shall not become ineligible for funding if either the highest of the first two months total projected average daily membership for the current year or the higher of the first two months total prior year average daily membership would otherwise have made the unit eligible for funds under the schedule in subsection (a)(a1) of this section.

...."

 

REVISE DPI BUDGET REDUCTIONS/Funds for Reduction Costs

SECTION 7.5.  Section 7.7 of S.L. 2017‑57 reads as rewritten:

"SECTION 7.7.(a)  Notwithstanding G.S. 143C‑6‑4, the Department of Public Instruction may, after consultation with the Office of State Budget and Management and the Fiscal Research Division, reorganize the Department, Department, realign fund structures, or both, if necessary, to implement (i) the budget reductions for the 2017‑2019 fiscal biennium.biennium, (ii) recommendations resulting from the audit required pursuant to Section 7.23L of this act, or (iii) other changes necessary to improve the efficiency of the Department. Consultation shall occur prior to requesting budgetary and personnel changes through the budget revision process. The Department of Public Instruction shall provide (i) a current organization chart and a list of affected funds and (ii) the proposed organization chart and a list of affected funds clearly identifying the changes for the Department in the consultation process and shall report to the Joint Legislative Commission on Governmental Operations on any reorganization, including any movement of positions and funds between fund codes on a recurring basis.

"SECTION 7.7.(b)  In implementing (i) budget reductions for the 2017‑2019 fiscal biennium, (ii) recommendations resulting from the audit required pursuant to Section 7.23L of this act, or (iii) other changes necessary to improve the efficiency of the Department of Public Instruction, the Department of Public Instruction shall make no reduction to funding (i) for the State Public School Fund, including for the following residential schools: Eastern North Carolina School for the Deaf, the North Carolina School for the Deaf, and the Governor Morehead School, and (ii) for any budget expansion item funded by an appropriation to the Department of Public Instruction by this act for the 2017‑2019 fiscal biennium. The Department shall also make no transfers from or reduction to funding or positions for any of the following:

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

(2)        Teach For America, Inc.

(3)        Beginnings for Parents of Children Who are Deaf or Hard of Hearing, Inc.

(4)        The Excellent Public Schools Act, Read to Achieve Program, initially established under Section 7A.1 of S.L. 2012‑142.

(5)        The North Carolina School Connectivity Program.

(6)        The North Carolina Center for the Advancement of Teaching.

(7)        The North Carolina Innovative School District.

(8)        Eastern North Carolina STEM.

(9)        Positions appointed by and with a direct report to the State Superintendent of Public Instruction, including those positions described in Section 7.10 of this act.

"SECTION 7.7.(c)  In addition, when implementing budget reductions for the 2018‑2019 fiscal year, the Department of Public Instruction may use up to three million dollars ($3,000,000) of funds appropriated to Fund Code 1800 to cover costs, including severance payments and contract renegotiations, associated with the reductions required by this act."

 

ADJUST TRANSFER OF FUNDS FOR BUSINESS SYSTEM MODERNIZATION PLAN

SECTION 7.6.  Section 7.16(d) of S.L. 2017‑57 reads as rewritten:

"SECTION 7.16.(d)  Of the funds appropriated to the Department of Public Instruction by this act for the school business system modernization plan for the 2017‑2019 fiscal biennium, the Department shall transfer up to three million two hundred fifty thousand dollars ($3,250,000) for the 2017‑2018 fiscal year and up to two hundred fifty thousand dollars ($250,000)three million dollars ($3,000,000) for the 2018‑2019 fiscal year to GDAC to leverage existing public‑private partnerships for the development and deploymentdevelopment, deployment, and ongoing provision of a data integration service that consolidates data from financial, human resources, licensure, student information, the Education Value‑Added Assessment System (EVAAS), and related systems. Implementation shall also include development and deployment of a modern analytical platform and reporting environment. By December 1, 2017,1 of each fiscal year, GDAC shall execute any contractual agreements and interagency data sharing agreements necessary to develop the reporting system established by this section."

 

REVISE DIGITAL LEARNING PLAN FUNDS

SECTION 7.7.  Section 7.23K(c) of S.L. 2017‑57 reads as rewritten:

"SECTION 7.23K.(c)  Of the six million four hundred twenty thousand dollars ($6,420,000) in recurring funds appropriated to the Department of Public Instruction for the 2017‑2018 fiscal year to accelerate implementation of the State's Digital Learning Plan, as set out in S.L. 2016‑94, beginning with for the 2017‑2018 fiscal year, the Department shall use up to one million eight hundred thousand dollars ($1,800,000) to implement the requirements of this section.

Of the four million dollars ($4,000,000) in recurring funds and the two million four hundred twenty thousand dollars ($2,420,000) in nonrecurring funds appropriated to the Department of Public Instruction for the 2018‑2019 fiscal year to accelerate implementation of the State's Digital Learning Plan, as set out in S.L. 2016‑94, beginning with the 2018‑2019 fiscal year, the Department shall use up to one million eight hundred thousand dollars ($1,800,000) each fiscal year to implement the requirements of this section."

 

CTE GRADE EXPANSION PROGRAM funds

SECTION 7.8.(a)  Section 7.23F(d) of S.L. 2017‑57 reads as rewritten:

"SECTION 7.23F.(d)  The nonrecurring funds allocated to the Commission under subdivision (2) of subsection (c) of this section shall not revert at the end of eachthe 2017‑2018 fiscal year but shall remain available until expended."

SECTION 7.8.(b)  The nonrecurring funds appropriated by this act for the 2018‑2019 fiscal year to the Department of Public Instruction for the Career and Technical Education Grade Expansion Program established pursuant to Section 7.23F of S.L. 2017‑57 shall not revert at the end of the 2018‑2019 fiscal year but shall remain available until expended.

SECTION 7.8.(c)  Subsection (a) of this section becomes effective June 30, 2018.

 

EXTEND ADVANCED TEACHING ROLES PILOT FOR FIVE YEARS

SECTION 7.9.  Section 8.7 of S.L. 2016‑94 reads as rewritten:

"SECTION 8.7.(a)  Purpose. – The State Board of Education shall establish a three‑yearan eight‑year pilot program (pilot) to develop advanced teaching roles and organizational models that link teacher performance and professional growth to salary increases in selected local school administrative units for classroom teachers. For the purposes of this section, a classroom teacher is a teacher who works in the classroom providing instruction at least seventy percent (70%) of the instructional day and who is not instructional support personnel. The purpose of the pilot shall be to do the following:

(1)        Allow highly effective classroom teachers to teach an increased number of students by assuming accountability for additional students, by becoming a lead classroom teacher accountable for the student performance of all of the students taught by teachers on that lead classroom teacher's team, or by leading a larger effort in the school to implement new instructional models to improve school‑wide performance.

(2)        Enable local school administrative units to provide salary supplements to classroom teachers in advanced teaching roles. Selection of an advanced teaching role classroom teacher and award of related salary supplements shall be made on the basis of demonstrated effectiveness and additional responsibilities.

(3)        Enable local school administrative units to create innovative compensation models that focus on classroom teacher professional growth and student outcomes.

(4)        Utilize local plans to establish organizational changes related to compensation in order to sustain evidenced‑based teaching practices that have the capacity to be replicated throughout the State.

"SECTION 8.7.(d)  Pilot Implementation. The selected local school administrative units shall implement their approved pilots beginning with the 2017‑2018 school year and ending with the 2019‑20202024‑2025 school year. The local board of education for each selected pilot local school administrative unit shall provide any requested information and access to the independent research organization selected by the State Board of Education to evaluate the pilots pursuant to subsection (f) of this section.

…."

 

EXTEND FINANCE REFORM STUDY COMMITTEE TO 2019

SECTION 7.10.  Section 7.23D(f) of S.L. 2017‑57 reads as rewritten:

"SECTION 7.23D.(f)  Meetings of the Task Force shall begin no later than October 1, 2017. The Task Force shall submit a final report on the results of its study and development, including proposed legislation, to the Joint Legislative Education Oversight Committee on or before October 1, 2018,2019, by filing a copy of the report with the Office of the President Pro Tempore of the Senate, the Office of the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Legislative Library. The Task Force shall terminate on October 1, 2018,2019, or upon the filing of its final report, whichever comes first."

 

CLARIFY DRIVER EDUCATION PROGRAM FUNDS

SECTION 7.11.(a)  G.S. 115C‑105.25(b)(11) reads as rewritten:

"(11)    No funds shall be transferred into or out of the driver education allotment category."

SECTION 7.11.(b)  G.S. 115C‑215 reads as rewritten:

"§ 115C‑215.  Administration of driver education program by the Department of Public Instruction.

(a)        In accordance with criteria and standards approved by the State Board of Education, the State Superintendent of Public Instruction shall organize and administer a standardized program of driver education to be offered at the public high schools of this State for all physically and mentally qualified persons who (i) are older than 14 years and six months, (ii) are approved by the principal of the school, pursuant to rules adopted by the State Board of Education, (iii) are enrolled in a public or private high school within the State or are receiving instruction through a home school as provided by Part 3 of Article 39 of Chapter 115C of the General Statutes, and (iv) have not previously enrolled in the program. The driver education program shall be for the purpose of making available public education to all students on driver safety and training. The State Board of Education shall use for this purpose all funds appropriated pursuant to subsection (f) of this section to it for this purpose the Department of Public Instruction and may use all other funds that become available for its use for this purpose.

(c1)      If a local school administrative unit does not comply with any reporting requirements imposed on the unit for the purposes of implementing the strategic plan established by the State Board of Education pursuant to subsection (c) of this section, the Department of Public Instruction may withhold up to five percent (5%) of the State funds allocated to a local school administrative unit for driver education until the unit reports the information required by the Department.

(f)        The clear proceeds of the newly established motor vehicle registration late fee charged pursuant to G.S. 20‑88.03, as enacted by S.L. 2015‑241, shall be used to provide a dedicated source of revenue for the drivers education program administered by the Department of Public Instruction in accordance with this section and shall be appropriated by the General Assembly for this purpose for the 2016‑2017 fiscal year and subsequent fiscal years thereafter.

(g)        The Department of Public Instruction shall have a full‑time director and other professional, administrative, technical, and clerical personnel as may be necessary for the statewide administration of the driver education program. Of the funds appropriated to the Department each fiscal year pursuant to subsection (f) of this section, the Department may use up to two percent (2%) of those funds for the direct costs for the statewide administration of the program, including any necessary positions."

 

ADD EDGECOMBE COUNTY SCHOOLS/ENC STEM

SECTION 7.12.(a)  Section 7.36 of S.L. 2017‑57, as enacted by Section 2.7 of S.L. 2017‑197, reads as rewritten:

"EASTERN NORTH CAROLINA STEM/HALIFAX COUNTY AND EDGECOMBE COUNTY SCHOOLS

"SECTION 7.36. Notwithstanding any other provision of law, students enrolled in Halifax County Schools and Edgecombe County Schools shall be permitted to participate in the residential science, mathematics, engineering, and technology (STEM) enrichment program for traditionally underserved students supported by the sum of three hundred thousand dollars ($300,000) in nonrecurring funds appropriated by this act to the Department of Public Instruction for the 2017‑2018 fiscal year to be used by the State Board of Education to contract for administration of the program."

SECTION 7.12.(b)  This section is effective the date this act becomes law.

 

EXTEND PILOT/VIRTUAL CHARTER SCHOOLS

SECTION 7.13.  Section 8.35 of S.L. 2014‑100, as amended by Section 8.13 of S.L. 2016‑94, reads as rewritten:

"SECTION 8.35.(a)  Notwithstanding G.S. 115C‑238.29DG.S. 115C‑218.5 or any other provision of law to the contrary, the State Board of Education shall establish a pilot program to authorize the operation of two virtual charter schools serving students in kindergarten through twelfth grade. The State Board shall establish an application process to allow student enrollment in the selected virtual charter schools beginning with the 2015‑2016 school year. A virtual charter school participating in the pilot may serve any grade span of students in kindergarten through twelfth grade. The pilot program shall continue for a period of foureight school years and shall end with the 2018‑20192022‑2023 school year.

"SECTION 8.35.(b)  The virtual charter schools participating in the pilot program authorized by this section shall be subject to the statutes and rules applicable to charter schools pursuant to Part 6A of Article 1614A of Chapter 115C of the General Statutes, except as follows:

"SECTION 8.35.(c)  In addition to the operating requirements applicable to a virtual charter school participating in the pilot program pursuant to Part 6A of Article 1614A of Chapter 115C of the General Statutes, the following requirements shall apply to a participating virtual charter school:

"SECTION 8.35.(d)  Notwithstanding G.S. 115C‑238.29BG.S. 115C‑218.1 and G.S. 115C‑238.29D,G.S. 115C‑218.5, a participating virtual charter school that is successful in meeting the requirements of this section and the applicable requirements of Part 6A of Article 1614A of Chapter 115C of the General Statutes during the period of the pilot program shall be eligible to be approved by the State Board of Education, at its discretion, without additional application requirements.

"SECTION 8.35.(e)  The State Board of Education shall provide State funding to a virtual charter school participating in the pilot program as provided in G.S. 115C‑238.29H(a)G.S. 115C‑218.105(a) and G.S. 115C‑238.29H(a1).G.S. 115C‑218.105(b). The amount allocated pursuant to G.S. 115C‑238.29H(a)(1)G.S. 115C‑218.105(a)(1) shall not, however, include the allocation for low‑wealth counties supplemental funding and the allocation for small county supplemental funding. Virtual charter schools participating in the pilot program shall also be subject to the requirements in G.S. 115C‑238.29H(b)G.S. 115C‑218.105(c) through G.S. 115C‑238.29H(d).G.S. 115C‑218.105(e). The amount of local funds provided to participating schools pursuant to G.S. 115C-238.29H(b)G.S. 115C‑218.105(c) shall be the lesser of seven hundred ninety dollars ($790.00) per pupil or the amount computed in accordance with G.S. 115C‑238.29H(b).G.S. 115C‑218.105(c).

"SECTION 8.35.(g)  The State Board shall report on the initial implementation of the pilot program to the Joint Legislative Education Oversight Committee by November 15, 2016, and on findings from three (i) five years of operation of the pilot program by November 15, 2018.2020, and (ii) seven years of operation of the pilot program by November 15, 2022. At a minimum, the reportreports shall include the following:

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

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

(3)        The withdrawal rate of students after enrollment.

(4)        Student performance and accountability data.

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

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

 

STATE BOARD OF EDUCATION ROLL CALL VOTES

SECTION 7.14.(a)  G.S. 115C‑11(d) reads as rewritten:

"(d)      Voting. – No voting by proxy shall be permitted. Except in voting on textbook adoptions, all voting shall be viva voce unless a record vote or secret ballot is demanded by any member, a majority of those present and voting shall be necessary to carry a motion.motion and a roll call vote shall be had on each motion. A record of all such votes shall be kept in the minute book."

SECTION 7.14.(b)  This section is effective the date this act becomes law and applies to votes by the State Board of Education taken at any meeting occurring on or after that date.

 

CERTAIN CIHS OPERATING WITHOUT ADDITIONAL FUNDS

SECTION 7.15.  Beginning with the 2018‑2019 school year and for subsequent school years thereafter, notwithstanding G.S. 115C‑238.51A(c) and G.S. 115C‑238.54, the Center for Industry, Technology, and Innovation, the Innovation Early College High School, the Marine Sciences and Technologies Early College High School, the Roanoke Rapids Early College High School, and the Southeast Area Technical High School shall be permitted to operate in accordance with G.S. 115C‑238.53 and G.S. 115C‑238.54 as cooperative innovative high schools approved under G.S. 115C‑238.51A(c) and shall be subject to the evaluation requirements of G.S. 115C‑238.55.

 

REGIONAL SCHOOL WITHDRAWAL MORATORIUM

SECTION 7.16.(a)  The Joint Legislative Education Oversight Committee shall study the current statutory requirements for the formation, approval, and expansion of regional schools and shall study the issue of whether a withdrawal process for participating units from a regional school should be added to the statutes governing regional schools. The Committee shall make recommendations on any statutory changes no later than January 15, 2019, to the General Assembly.

SECTION 7.16.(b)  No participating unit in an approved regional school currently operating in the State shall withdraw from the regional school unless the General Assembly, following the review and recommendations of the Joint Legislative Education Oversight Committee, provides a statutory process for such withdrawal. Participating units shall continue to receive allotments for student seats, transfer local funds to the regional school, provide transportation, and comply with all other requirements of Part 10 of Article 16 of Chapter 115C of the General Statutes for participating units.

SECTION 7.16.(c)  This section is effective when this act becomes law.

 

FUNDS FOR WORKFORCE DEVELOPMENT/HOSPITALITY JOBS

SECTION 7.17.(a)  Of the funds appropriated to the Department of Public Instruction for the 2018‑2019 fiscal year by this act, the sum of up to two hundred thousand dollars ($200,000) for the 2018‑2019 fiscal year shall be made available to the North Carolina Hospitality Education Foundation (Education Foundation) of the North Carolina Restaurant and Lodging Association to be used to provide nationally certified programs in career and technical education focused on developing critical skills necessary for students to succeed in the hospitality sector. The purpose of the funds shall be to support instructor and student training and student testing to increase the State's skilled workforce in the restaurant and lodging sectors. The Education Foundation shall match State funds made available pursuant to this section on the basis of one dollar ($1.00) in State funds for every one dollar ($1.00) in non‑State funds.

SECTION 7.17.(b)  The Education Foundation, in consultation with the Department of Public Instruction, shall submit a report by April 1 of each year in which the Education Foundation spends State funds made available pursuant to this section to the Joint Legislative Education Oversight Committee and the Fiscal Research Division on the activities described by this section and the use of those funds.

 

PERMIT MILITARY CHILDREN TO ENROLL PRIOR TO RESIDENCY IN NORTH CAROLINA

SECTION 7.18.(a)  G.S. 115C‑218.45 is amended by adding a new subsection to read:

"(d1)    A student who is not a domiciliary of the State shall be permitted to register to enroll in a charter school or participate in a lottery for admission to a charter school within the State by remote means, including electronic means, prior to commencement of the student's residency in the State if all of the following apply:

(1)        A parent or legal guardian is on active military duty and is transferred or pending transfer pursuant to an official military order to a military installation or reservation in the State.

(2)        Upon request by the charter school where the student seeks to register to enroll or participate in a lottery for admission, a parent or legal guardian provides a copy of the official military order transferring to a military installation or reservation located in the State.

(3)        A parent or legal guardian completes and submits the charter school's required enrollment forms and documentation, except that proof of residency and documentation related to disciplinary actions pursuant to subsection (i) of this section shall not be required until the student transfers into the State, at which time they shall be required prior to commencing attendance.

A charter school shall make available to a student who registers to enroll or who participates in a lottery pursuant to this subsection the same opportunities available to a student enrolled or participating in a lottery contemporaneously with domicilia in the State, such as registering for courses and applying for programs that require additional request or application. A student enrolled pursuant to this subsection may not attend the charter school until proof of residency is provided in accordance with the requirements of the charter school. Nothing in this subsection shall be construed to curtail a charter school's authority pursuant to subsection (i) of this section."

SECTION 7.18.(b)  G.S. 115C‑366 is amended by adding a new subsection to read:

"(a9)    A student who is not a domiciliary of a local school administrative unit shall be permitted to register to enroll in the public schools of that unit by remote means, including electronic means, prior to commencement of the student's residency in the local school administrative unit if all of the following apply:

(1)        A parent or legal guardian is on active military duty and is transferred or pending transfer pursuant to an official military order to a military installation or reservation in the State.

(2)        Upon request by the local school administrative unit where the student seeks to register to enroll, a parent or legal guardian provides a copy of the official military order transferring to a military installation or reservation located in the State.

(3)        A parent or legal guardian completes and submits the local school administrative unit's required enrollment forms and documentation, except that proof of residency and documentation related to disciplinary actions pursuant to G.S. 115C‑366(a4) shall not be required until the student transfers into the local school administrative unit, at which time they shall be required prior to commencing attendance.

A local school administrative unit shall make available to a student who registers to enroll pursuant to this subsection the same opportunities available to a student enrolled contemporaneously with domicilia, such as requesting or applying for school assignment, registering for courses, and applying for any other programs that require additional request or application. A student enrolled pursuant to this subsection may not attend school in the local school administrative unit until proof of residency is provided in accordance with the requirements of the local school administrative unit. Nothing in this subsection shall be construed to curtail a local school administrative unit's authority pursuant to G.S. 115C‑366(a5)."

SECTION 7.18.(c)  G.S. 115C‑366.1 reads as rewritten:

"§ 115C‑366.1.  Local boards of education; tuition charges.

(a)        Local boards of education may charge tuition to the following persons:

(1)        Persons of school age who are not domiciliaries of the State.

(2)        Persons of school age who are domiciliaries of the State but who do not reside within the school administrative unit or district.unit.

(3)        Persons of school age who reside on a military or navalinstallation or reservation located within the State and who are not domiciliaries of the State. Provided, however, that no person of school age residing on a military or navalinstallation or reservation located within the State and who attends the public schools within the State may be charged tuition if federal funds designed to compensate for the impact on public schools of military dependent persons of school age are funded by the federal government at not less than fifty percent (50%) of the total per capita cost of education in the State, exclusive of capital outlay and debt service, for elementary or secondary pupils, as the case may be, of such school administrative unit.

…."

SECTION 7.18.(d)  G.S. 115C‑407.5 reads as rewritten:

"§ 115C‑407.5.  Interstate Compact on Educational Opportunity for Military Children.

The Interstate Compact on Educational Opportunity for Military Children is hereby enacted into law and entered into with all jurisdictions legally joining therein in the form substantially as follows:

ARTICLE VI.

ELIGIBILITY.

A.        Eligibility for enrollment – Children of military families shall be eligible for enrollment in the public schools of North Carolina pursuant to the provisions of G.S. 115C‑366, including the provisions of (i) G.S. 115C‑366(a3) that provides for admission,admission without the payment of tuition,tuition of children of military families not domiciled within the local school district,administrative unit and (ii) G.S. 115C‑366(a9) that provides for remote enrollment registration of children of military families not domiciled within the local school administrative unit, provided that the affidavits provided for in that section and other specified conditions are met.

…."

SECTION 7.18.(e)  This section becomes effective January 1, 2019, and applies to enrollment applications received on or after that date.

 

CHARTER SCHOOL TRANSPORTATION GRANT PILOT PROGRAM REPORT

SECTION 7.19.  The Department of Public Instruction shall provide a report by December 1, 2018, to the Fiscal Research Division, the Joint Legislative Transportation Oversight Committee, and the Joint Legislative Education Oversight Committee on the results of the Charter School Transportation Grant Pilot Program (Program) established pursuant to Section 7.35 of S.L. 2017‑57 for the 2017‑2018 fiscal year. The report shall include (i) the number of charter schools that received grant funds, (ii) the amount of grant funds awarded to those charter schools, (iii) whether implementing the Program led to an increase in charter schools offering lunch, (iv) whether implementing the Program led to an increase in student lunch participation at charter schools offering lunch, (v) whether implementing the Program increased or expanded the offering of student transportation by charter schools, and (vi) the modes of student transportation offered by charter schools that received grant funds.

 

MODIFY PROHIBITION ON DPI SERVING AS ISD OPERATOR

SECTION 7.20.(a)  G.S. 115C‑75.5(3) reads as rewritten:

"(3)      Innovative school operator or IS operator. – An entity selected by the State Board of Education upon the recommendation of the ISD Superintendent to operate an innovative school. The Except as otherwise provided in this Article, the Department of Public Instruction may not be selected as an IS operator."

SECTION 7.20.(b)  G.S. 115C‑75.9(a) reads as rewritten:

"(a)      Direct Management by IS Operator. – An innovative school shall be subject to direct management by an IS operator selected by the State Board of Education, upon the recommendation of the ISD Superintendent, for a five‑year contract. In the event that temporary management is necessary due to contract termination, lack of a qualified IS operator under G.S. 115C‑75.8(b1), or other unforeseen emergency, the ISD is authorized to act as an IS operator."

SECTION 7.20.(c)  G.S. 115C‑75.8 reads as rewritten:

"§ 115C‑75.8.  Selection of IS operators.

(a)        The State Board of Education may select an IS operator for a prospective innovative school by January 15 and shall select an IS operator for a prospective school no later than February 15.

(b)        Upon the recommendation of the ISD Superintendent, the State Board of Education shall only select an entity to contract as an IS operator if that entity demonstrates one of the following:

(1)        The entity has a record of results in improving performance of persistently low‑performing schools or improving performance of a substantial number of persistently low‑performing students within a school or schools operated by the entity in this State or other states.

(2)        The entity has a credible and specific plan for dramatically improving student achievement in a low‑performing school and provides evidence that the entity, or a contractual affiliate of such an entity, is either currently operating a school or schools in this State that provide students a sound, basic education or demonstrating consistent and substantial growth toward providing students a sound, basic education in the prior three school years.

(b1)      In the event that no entity demonstrates the qualifications required by subsection (b) of this section, the ISD is authorized to act as an IS operator for one academic year and the State Board shall select an entity in accordance with subsection (b) of this section to assume management beginning with the next academic year. If the State Board has not been able to select an entity demonstrating the required qualifications by the third year of management of the school by the ISD, the ISD shall remain the operator of the school until the end of the fifth year and shall develop a transition plan to return the school to the local school administrative unit.

…."

SECTION 7.20.(d)  G.S. 115C‑75.12(a)(5) reads as rewritten:

"(5)      Termination of contract on other grounds. – The State Board of Education, upon the recommendation of the ISD Superintendent, may terminate a contract with an IS operator at any time during the contract for financial mismanagement, noncompliance with federal or State laws, failure to comply with the terms of the contract, or evidence of criminal activity. The State Board of Education shall develop a transition plan to return the school to the local school administrative unit. The ISD is authorized to act as a temporary IS operator during the transition period, if necessary."

 

ADD SCHOOL SYSTEMS TO THE TEACHER ASSISTANT TUITION REIMBURSEMENT PROGRAM

SECTION 7.21.  Section 8.29 of S.L. 2016‑94, as amended by Section 7.20 of S.L. 2017‑57 and by Section 6(m) of S.L. 2017‑189, reads as rewritten:

"SECTION 8.29.(a)  Purpose. – The purpose of this section is to establish a pilot program for, to provide tuition assistance awards to part‑time or full‑time teacher assistants working in participating local school administrative units, to be administered by certain local boards of education as follows:

(1)        beginning Beginning with the 2016‑2017 fiscal year, the local boards of education of the Anson County, Franklin County, Moore County, Richmond County, and Scotland County school administrative units and, units.

(2)        beginning Beginning with the 2017‑2018 fiscal year, the local boards of education of the Alamance‑Burlington Schools, Beaufort County Schools, Bertie County Schools, Duplin County Schools, Edenton‑Chowan Schools, Edgecombe County Schools, Guilford County Schools, Halifax County Schools, Nash‑Rocky Mount Schools, Northampton County Schools, Randolph County Schools, Tyrrell County Schools, Vance County Schools, and Washington County SchoolsSchools.

(3)        Beginning with the 2018‑2019 fiscal year, the local boards of education of the Alleghany County Schools, Ashe County Schools, Bladen County Schools, Cherokee County Schools, Clay County Schools, Columbus County Schools, Davidson County Schools, Graham County Schools, Greene County Schools, Jackson County Schools, Jones County Schools, Lenoir County Public Schools, Macon County Schools, McDowell County Schools, Mitchell County Schools, Public Schools of Robeson County, Swain County Schools, Yadkin County Schools, and Yancey County Schools.

to provide tuition assistance awards to part‑time or full‑time teacher assistants working in those local school administrative units to pursue a college degree that will result in teacher licensure.

Tuition assistance awards under the program may be provided for part‑time or full‑time coursework. coursework toward a college degree that will result in teacher licensure. A local board of education may grant a teacher assistant academic leave to pursue coursework that may only be taken during working hours. A teacher assistant receiving an award under the program shall fulfill the student teaching requirements of an educator preparation program by working in the teacher assistant's employing local school administrative unit. A teacher assistant shall continue to receive salary and benefits while student teaching in the local school administrative unit in accordance with G.S. 115C‑269.30(c).

"SECTION 8.29.(b)  Selection of applicants. – Each local board of education participating in the pilot program may select up to five teacher assistants to receive an award of up to four thousand five six hundred dollars ($4,500)($4,600) per academic year for a period of up to four years to be used towards the cost of tuition and fees for a teacher assistant to attend an educator preparation program at an institution of higher education. Priority for awards shall be given to a teacher assistant who received a tuition assistance award for the previous academic year and who is making satisfactory academic progress towards achieving teacher licensure. The local board of education shall set criteria for the application and selection of teacher assistants to receive tuition assistance awards that includes at least the following:

"SECTION 8.29.(d)  The local boards of education participating in the pilot program for the 2016‑2017 fiscal year shall jointly report to the Joint Legislative Education Oversight Committee by September 1, 2017. All of the local boards of education participating in the pilot program shall jointly report to the Joint Legislative Education Oversight Committee by September 1, 2018, and by September 1 of each year thereafter following the first full fiscal year of participation in the pilot program on the results of the pilot program, including at least the following information:

(1)        The number and amount of funds in tuition assistance awards provided to teacher assistants.

(2)        The number of teacher assistant recipients who achieved teacher licensure, including the period of time from the issue of an initial tuition assistance award to the time of achieving licensure.

(3)        The number of recipients who remained employed in the local school administrative unit after achieving teacher licensure."

 

FUNDS FOR CLASSROOM SUPPLIES

SECTION 7.22.(a)  Of the funds appropriated in this act to the Department of Public Instruction for the 2018‑2019 fiscal year, the sum of two hundred thousand dollars ($200,000) for the 2018‑2019 fiscal year shall be made available as grant‑in‑aid to the nonprofit organization known as DonorsChoose, Inc., to be used for classroom supplies. The purpose of the funds shall be to enhance educational opportunities by providing the supplies needed to carry out classroom projects planned and requested by educators. Funds shall be available for teachers only at the following schools located in the Charlotte‑Mecklenburg school administrative unit: Ardrey Kell High School, Bailey Middle School, Ballantyne Elementary School, Barnette Elementary School, Berryhill School, Berewick Elementary School, Blythe Elementary School, Community House Middle School, Cornelius Elementary School, Davidson Elementary School, Elon Park Elementary School, Francis Bradley Middle School, Grand Oak Elementary School, Hawk Ridge Elementary School, Hopewell High School, Huntersville Elementary School, J. M. Alexander Middle School, J. V. Washam Elementary School, Kennedy Middle School, Lake Wylie Elementary School, Long Creek Elementary School, North Mecklenburg High School, Olympic Community of Schools, Palisades Park Elementary School, Pineville Elementary School, River Gate Elementary School, River Oaks Academy, Southwest Middle School, Steele Creek Elementary School, Torrence Creek Elementary School, Trillium Springs Montessori School, Whitewater Academy, Whitewater Middle School, William Amos Hough High School, and Winget Park Elementary School.

SECTION 7.22.(b)  DonorsChoose, Inc., in consultation with the Department of Public Instruction, shall submit a report by September 1, 2019, to the Joint Legislative Education Oversight Committee and the Fiscal Research Division on the projects carried out under this section and the use of State funds.

 

EXTEND DEADLINE FOR IMPLEMENTATION OF READ TO ACHIEVE ASSESSMENT INSTRUMENTS

SECTION 7.23.  Section 7.27 of S.L. 2017‑57, as amended by Section 2.6 of S.L. 2017‑197, reads as rewritten:

"…

"SECTION 7.27.(b)  By October 1, 2017, theThe State Superintendent shall issue a Request for Proposals (RFP) to vendors of diagnostic reading assessment instruments to provide one or more valid, reliable, formative, and diagnostic reading assessment instrument or instruments for use pursuant to G.S. 115C‑174.11. At a minimum, the diagnostic reading assessment instrument or instruments provided by the selected vendor shall meet all of the following criteria:

(1)        Yield data that can be used with the Education Value‑Added Assessment System (EVAAS).

(2)        Demonstrate close alignment with student performance on State assessments, including all assessments required in kindergarten through third grade by Part 2 of Article 10A of Chapter 115C of the General Statutes.

(3)        Demonstrate high rates of predictability as to student performance on State assessments, including all assessments required in kindergarten through third grade by Part 2 of Article 10A of Chapter 115C of the General Statutes.

"SECTION 7.27.(c)  The State Superintendent shall form and supervise an Evaluation Panel to review the proposals received pursuant to the RFP issued in accordance with subsection (b) of this section. The Evaluation Panel shall be composed of persons employed within the Department of Public Instruction. By March 1, 2018,December 1, 2018, the Evaluation Panel, with the approval of the State Superintendent, shall select one vendor to provide the assessment instrument or instruments for the 2018‑20192019‑2020 school year. In determining which vendor to select, the Evaluation Panel shall consider, at a minimum, all of the following factors:

"SECTION 7.27.(d)  Subsection (a) of this section applies beginning with the 2018‑20192019‑2020 school year. Subsection (c1) of this section becomes effective June 30, 2017."

 

CLARIFY REPORTING REQUIREMENTS FOR READ TO ACHIEVE DATA

SECTION 7.24.(a)  G.S. 115C‑83.10 reads as rewritten:

"§ 115C‑83.10.  Accountability measures.

(a)        Each local board of education shall publish annually on a Web site maintained by that local school administrative unit and report in writing to the State Board of Education by September 1 of each year the following information on the prior school year:

(1)        The number and percentage of third grade students demonstrating and not demonstrating reading proficiency on the State‑approved standardized test of reading comprehension administered to third grade students.

(2)        The number and percentage of third grade students who take and pass the an alternative assessment of reading comprehension.comprehension and the name of each alternative assessment used for this purpose with the number of students who passed it.

(3)        The number and percentage of third grade students retained for not demonstrating reading proficiency.

(4)        The number and percentage of third grade students exempt from mandatory third grade retention by category of exemption as listed in G.S. 115C‑83.7(b).

(5)        The number and percentage of first grade students demonstrating and not demonstrating reading comprehension at grade level.

(6)        The number and percentage of second grade students demonstrating and not demonstrating reading comprehension at grade level.

(7)        For each grade level, the number and percentage of students eligible for priority enrollment in reading camp under G.S. 115C‑83.11(b) and, for each grade level, the number and percentage of those students who attend reading camp.

(b)        Each local board of education shall report annually in writing to the State Board of Education by September 1 of each year the following information on the prior school year:

(1)        a A description of all reading interventions provided to students who have been retained under G.S. 115C‑83.7(a).

(2)        The local board of education shall also include in the report theThe number of first and second grade students attending a reading camp offered by the local board.

(3)        The license area or areas, years of licensed teaching experience, grade level assignment, and any other specific subject‑area assignments of each teacher providing instruction at a reading camp.

(4)        The number and percentage of teachers providing instruction at a reading camp who were paid a reading performance bonus during the school year immediately preceding the reading camp and the grade level on which the bonus was based.

(b1)      Each local board of education shall report annually in writing to the State Board of Education by November 15 of each year, for the prior school year, (i) the number and percentage of third grade students who did not demonstrate proficiency upon entering reading camp and who became proficient after completing reading camp and (ii) for each grade level, the number and percentage of first and second grade students who demonstrated reading comprehension below grade level upon entering camp and who demonstrated reading comprehension at or above grade level after completing reading camp.

(c)        The State Board of Education shall establish a uniform format for local boards of education to report the required information listed in subsections (a) and (b) of this section and shall provide the format to local boards of education no later than 90 days prior to the annual due date. The State Board of Education shall compile annually this information and submit a State‑level summary to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Joint Legislative Education Oversight Committee by December 15, 2016, and annually thereafter. The State‑level summary shall include, for each local school administrative unit, every component listed in subsections (a), (b), and (b1) of this section.

(d)       The State Board of Education and the Department of Public Instruction shall provide technical assistance as needed to aid local school administrative units to implement all provisions of this Part.

(e)        Local boards of education shall fully complete all information required by this section in the uniform format provided by the State Board."

SECTION 7.24.(b)  G.S. 115C‑83.6 reads as rewritten:

"§ 115C‑83.6.  Facilitating early grade reading proficiency.

(a1)      Kindergarten through third grade reading assessments shall yield data that can be used with the Education Value‑Added Assessment System (EVAAS) to analyze student data to identify root causes for difficulty with reading development and to determine actions to address them.

(a2)      The Department of Public Instruction shall provide for EVAAS analysis all formative and diagnostic assessment data collected pursuant to this section or G.S. 115C‑174.11 for kindergarten through third grade.

…."

SECTION 7.24.(c)  G.S. 115C‑218.85(b)(4) reads as rewritten:

"(4)      The charter school shall annually publish on the charter school's Web site and report in writing to the State Board of Education by September 1 of each year the following information on the prior school year:

a.         The number and percentage of third grade students demonstrating and not demonstrating reading proficiency on the State‑approved standardized test of reading comprehension administered to third grade students.

b.         The number and percentage of third grade students not demonstrating reading proficiency and who do not return to the charter school for the following school year.

c.         The number and percentage of third grade students who take and pass the an alternative assessment of reading comprehension.comprehension and the name of each alternative assessment used for this purpose with the number of students who passed it.

d.         The number and percentage of third grade students retained for not demonstrating reading proficiency.

e.         The number and percentage of third grade students exempt from mandatory third grade retention by category of exemption as listed in subdivision (2) of this subsection."

SECTION 7.24.(d)  This section applies beginning with the 2018‑2019 school year, and shall include the reporting of required data from the 2017‑2018 school year.

 

SCHOOLS THAT LEAD PILOT PROGRAM

SECTION 7.25.(a)  Program; Purpose. – Of the funds appropriated to the Department of Public Instruction by this act for the Schools That Lead Pilot Program (Program), the Department shall contract with Schools That Lead, Inc., to provide professional development to teachers and principals in up to 60 schools, beginning with the 2018‑2019 school year and ending in the 2020‑2021 school year. The selected schools shall be charter schools or schools under the authority of a local school administrative unit. Professional development services shall be offered to teachers and principals in grades K‑12. The Superintendent of Public Instruction, in consultation with Schools That Lead, Inc., shall determine which schools are eligible to participate in the Program. At a minimum, the Program shall offer services to three cohorts of schools, as follows:

(1)        High schools working to increase on‑time graduation.

(2)        Middle schools working to prepare students to succeed in high school by reducing the likelihood of retention in the ninth grade for multiple school years.

(3)        Elementary schools working to reduce the number of students with early warning indicators of course failures, absences, and discipline.

SECTION 7.25.(b)  Evaluation. – Of the funds appropriated to the Department by this act for the Program, the Department shall use up to one hundred thousand dollars ($100,000) to contract with an independent research organization to measure the impacts of the Program on student outcomes, including, but not limited to (i) on‑time graduation in high school, (ii) ninth grade retention rates, and (iii) course failures, absences, and discipline in elementary school. The independent research organization shall report its interim findings to the Department no later than June 30, starting in 2019, and shall submit a final report no later than June 30, 2022.

SECTION 7.25.(c)  Report. – The Department of Public Instruction, in consultation with Schools That Lead, Inc., shall submit a report on the impacts of the Program authorized by subsection (a) of this section, including, but not limited to, an accounting of expenditures, school performance data, principal performance data, teacher performance data, and student outcome data, beginning October 1, 2019, and continuing each year thereafter until October 1, 2022, to the Joint Legislative Education Oversight Committee and the Fiscal Research Division. The October 1, 2022, report shall include a summary and copy of the final report provided by the independent research organization pursuant to subsection (b) of this section.

 

STATEWIDE ANONYMOUS SAFETY TIP LINE APPLICATION

SECTION 7.26.(a)  G.S. 115C‑105.51 reads as rewritten:

"§ 115C‑105.51.  Anonymous tip lines and monitoring and response applications.

(a)        Each local school administrative unit is encouraged to The governing body of each public secondary school shall develop and operate an anonymous tip line, in coordination with local law enforcement and social services agencies, to receive anonymous information on internal or external risks to the school population, school buildings, and school‑related activities. The Department of Public Instruction, in consultation with the Department of Public Safety, may develop standards and guidelines for the development, operation, and staffing of tip lines. The governing body of each public secondary school may use the anonymous safety tip line application developed pursuant to subsection (b) of this section, or another application that meets standards and guidelines developed by the Department of Public Instruction, to achieve the purposes of this subsection.

(b)        The Department of Public Instruction and the Center for Safer Schools, in collaboration with the Department of Public Safety, Division of Emergency Management, shall implement and maintain an anonymous safety tip line application available statewide for purposes of receiving anonymous student information on internal or external risks to the school population, school buildings, and school‑related activities. Public secondary schools shall inform students about the application and provide opportunities for students to learn about its purpose and function. The governing body of each public secondary school shall work with the Department of Public Instruction, Division of School Operations, and the Center for Safer Schools to ensure that employees of the public secondary schools receive adequate training in its operation.

(c)        The Department of Public Safety, Division of Emergency Management, and the Center for Safer Schools, in collaboration with the Department of Public Instruction and the North Carolina 911 Board, in collaboration with the Department of Public Instruction, Division of School Operations, and the Center for Safer Schools, shall implement and maintain a statewide panic alarm system for the purposes of launching real‑time 911 messaging to public safety answering points of internal and external risks to the school population, school buildings, and school‑related activities. The Department of Public Safety, in consultation with the Department of Public Instruction and the North Carolina 911 Board, may develop standards and guidelines for the operations and use of the panic alarm tool.

(d)       The Department of Public Safety Instruction and the Department of Public Safety shall ensure that the anonymous safety tip line application is integrated with and supports the statewide School Risk and Response Management System (SRRMS) as provided in G.S. 115C‑105.49A. Where technically feasible and cost efficient, the Department of Public Instruction and the Department of Public Safety is are encouraged to implement a single solution supporting both the anonymous safety tip line application and panic alarm system.

(e)        All data and information acquired and stored by the anonymous safety tip line application are not considered public records as the term "public record" is defined under G.S. 132‑1 and shall not be subject to inspection and examination under G.S. 132‑6.

(f)        Notwithstanding subsection (e) of this section, the Division Department of Public Instruction, Division of School Operations, may collect the annual aggregate number and type of tips sent to the anonymous tip line. The collection of this aggregate data shall not have any identifying information on the reporter of the tip, including, but not limited to, the school where the incident was reported and the date the tip was reported.

(g)        For the purposes of this section, a "public secondary school" is any of the following types of public school serving grades six or higher:

(1)        A school under the control of a local school administrative unit.

(2)        A school under the control of the State Board of Education, including schools operated under Article 7A and Article 9C of this Chapter.

(3)        A school under the control of The University of North Carolina.

(4)        A charter school.

(5)        A regional school."

SECTION 7.26.(b)  G.S. 115C‑12 is amended by adding a new subdivision to read:

"(46)    Duty Regarding Anonymous Safety Tip Line Application. – The State Board of Education shall use the anonymous safety tip line application developed pursuant to G.S. 115C‑105.51(b) for all public secondary schools serving students in grades six or higher operated under the control of the State Board of Education."

SECTION 7.26.(c)  G.S. 115C‑218.75 is amended by adding a new subsection to read:

"(e1)    Anonymous Tip Line. – A charter school shall develop and operate an anonymous tip line in accordance with G.S. 115C‑105.51."

SECTION 7.26.(d)  G.S. 115C‑238.66 is amended by adding a new subdivision to read:

"(7e)    Anonymous Tip Line. – A regional school shall develop and operate an anonymous tip line in accordance with G.S. 115C‑105.51."

SECTION 7.26.(e)  G.S.116‑11 is amended by adding a new subdivision to read:

"(12e)  The Board of Governors shall develop and operate an anonymous tip line in accordance with G.S. 115C‑105.51 for all public secondary schools, as defined in that section, operated under the control of the Board of Governors."

SECTION 7.26.(f)  Of the funds appropriated to the Department of Public Instruction by this act for the 2018‑2019 fiscal year, the sum of up to five million dollars ($5,000,000) in nonrecurring funds shall be used to support the anonymous safety tip line application implemented by the Department of Public Instruction, Division of School Operations, and the Center for Safer Schools pursuant to G.S. 115C‑105.51.

SECTION 7.26.(g)  By July 1, 2019, the Department of Public Instruction shall implement a statewide anonymous safety tip line application available to all schools serving grades six or higher in local school administrative units, charter schools, regional schools, and schools under the control of the State Board of Education or The University of North Carolina, as required under G.S. 115C‑105.51.

SECTION 7.26.(h)  Subsections (a), (b), (c), (d), and (e) of this section become effective July 1, 2019, and apply beginning with the 2019‑2020 school year. Except as otherwise provided, this section becomes effective July 1, 2018.

 

SCHOOL SAFETY GRANTS PROGRAM

SECTION 7.27.(a)  Definitions. – For purposes of this section, the following definitions shall apply:

(1)        Community partner. – A public or private entity, including, but not limited to, a nonprofit corporation or a local management entity/managed care organization (LME/MCO), that partners with a local school administrative unit to provide services for the unit.

(2)        Public school unit. – A local school administrative unit, regional school, innovative school, laboratory school, or charter school.

(3)        School mental health support personnel. – School nurses, school counselors, school psychologists, and school social workers.

SECTION 7.27.(b)  Program; Purpose. – The Superintendent of Public Instruction shall establish the School Safety Grants Program (program). The purpose of the program shall be to improve safety in public school units by providing grants for (i) school safety resource officers, (ii) services for students in crisis, (iii) school safety training, (iv) safety equipment in schools, and (v) additional school mental health support personnel.

SECTION 7.27.(c)  Grant Applications. – A public school unit or community partner, as appropriate, may submit an application to the Superintendent of Public Instruction for a grant pursuant to this section. The application shall include an assessment, to be performed in conjunction with a local law enforcement agency, of the need for improving school safety within the public school unit that would receive the funding or services. The application shall identify current and ongoing needs and estimated costs associated with those needs.

SECTION 7.27.(d)  Criteria and Guidelines. – By August 1, 2018, the Superintendent of Public Instruction shall develop criteria and guidelines for the administration and use of the grants pursuant to this section, including any documentation required to be submitted by applicants. In assessing grant applications, the Superintendent of Public Instruction shall consider at least all of the following factors:

(1)        The level of resources available to the public school unit that would receive the funding or services.

(2)        Whether the public school unit has received other grants of funding for school safety.

(3)        The overall impact on student safety in the public school unit if the identified needs are funded.

SECTION 7.27.(e)  Grants for School Resource Officers. – Of the funds appropriated to the Department of Public Instruction by this act for the program in the 2018‑2019 fiscal year, the Superintendent of Public Instruction shall use up to twelve million dollars ($12,000,000) in recurring funds to award grants to public school units for school resource officers in elementary and middle schools. Grants shall be matched on the basis of two dollars ($2.00) in State funds for every one dollar ($1.00) in non‑State funds.

Public school units may use these funds to employ school resource officers in elementary and middle schools, to train them, or both. Training shall be provided, in partnership with the public school unit, by a community college, a local law enforcement agency, or the North Carolina Justice Academy. Any training shall include instruction on research into the social and cognitive development of elementary school and middle school children.

SECTION 7.27.(f)  Grants for Students in Crisis. – Of the funds appropriated to the Department of Public Instruction by this act for the program in the 2018‑2019 fiscal year, the Superintendent of Public Instruction, in consultation with the Department of Health and Human Services, shall use up to two million dollars ($2,000,000) in nonrecurring funds to award grants to community partners to provide any of the following crisis services:

(1)        Crisis respite services for parents or guardians of an individual student to prevent more intensive or costly levels of care.

(2)        Training and expanded services for therapeutic foster care families and licensed child placement agencies that provide services to students who (i) need support to manage their health, welfare, and safety and (ii) have any of the following:

a.         Cognitive or behavioral problems.

b.         Developmental delays.

c.         Aggressive behavior.

(3)        Evidence‑based therapy services aligned with targeted training for students and their parents or guardians, including any of the following:

a.         Parent‑child interaction therapy.

b.         Trauma‑focused cognitive behavioral therapy.

c.         Dialectical behavior therapy.

d.         Child‑parent psychotherapy.

(4)        Any other crisis service, including peer‑to‑peer mentoring, that is likely to increase school safety. Of the funds allocated to the Superintendent for grants pursuant to this section, the Superintendent shall not use more than ten percent (10%) for the services identified in this subdivision.

SECTION 7.27.(g)  Grants for Training to Increase School Safety. – Of the funds appropriated to the Department of Public Instruction by this act for the program in the 2018‑2019 fiscal year, the Superintendent of Public Instruction, in consultation with the Department of Health and Human Services, shall use up to three million dollars ($3,000,000) in nonrecurring funds to award grants to community partners that will address school safety by providing training to help students develop healthy responses to trauma and stress. The training shall be targeted and evidence‑based and shall include any of the following services:

(1)        Counseling on Access to Lethal Means (CALM) training for school mental health support personnel, local first responders, and teachers on the topics of suicide prevention and reducing access by students to lethal means.

(2)        Training for school mental health support personnel on comprehensive and evidence‑based clinical treatments for students and their parents or guardians, including any of the following:

a.         Parent‑child interaction therapy.

b.         Trauma‑focused cognitive behavioral therapy.

c.         Behavioral therapy.

d.         Dialectical behavior therapy.

e.         Child‑parent psychotherapy.

(3)        Training for students and school employees on community resilience models to improve understanding and responses to trauma and significant stress.

(4)        Training for school mental health support personnel on Modular Approach to Therapy for Children with Anxiety, Depression, Trauma, or Conduct problems (MATCH‑ADTC), including any of the following components:

a.         Trauma‑focused cognitive behavioral therapy.

b.         Parent and student coping skills.

c.         Problem solving.

d.         Safety planning.

(5)        Any other training, including the training on the facilitation of peer‑to‑peer mentoring, that is likely to increase school safety. Of the funds allocated to the Superintendent for grants pursuant to this section, the Superintendent shall not use more than ten percent (10%) for the services identified in this subdivision.

SECTION 7.27.(h)  Grants for Safety Equipment. – Of the funds appropriated to the Department of Public Instruction by this act for the program in the 2018‑2019 fiscal year, the Superintendent of Public Instruction, in consultation with the Department of Health and Human Services, shall use up to three million dollars ($3,000,000) in nonrecurring funds to award grants to local school administrative units, regional schools, innovative schools, or laboratory schools for the purchase of safety equipment for government‑owned school buildings.

SECTION 7.27.(i)  Grants for School Mental Health Support Personnel. – Of the funds appropriated to the Department of Public Instruction by this act for the program in the 2018‑2019 fiscal year, the Superintendent of Public Instruction shall use up to ten million dollars ($10,000,000) in nonrecurring funds to award grants to public school units to provide all or a portion of the salary and benefits costs needed to employ additional school mental health support personnel during the 2018‑2019 fiscal year. It is the intent of the General Assembly to provide an additional ten million dollars ($10,000,000) for grants for school mental health support personnel, as defined in this section, in the 2019‑2020 fiscal year.

SECTION 7.27.(j)  Supplement Not Supplant. – Grants provided to public school units pursuant to the program shall be used to supplement and not to supplant State or non‑State funds already provided for these services.

SECTION 7.27.(k)  Administrative Costs. – Of the funds appropriated to the Department of Public Instruction by this act for the program in the 2018‑2019 fiscal year, the Superintendent of Public Instruction may retain up to one hundred thousand dollars ($100,000) for administrative costs associated with the program.

SECTION 7.27.(l)  Report. – No later than April 1, 2019, the Superintendent of Public Instruction shall report on the program to the Joint Legislative Education Oversight Committee, the Joint Legislative Oversight Committee on Health and Human Services, the Joint Legislative Oversight Committee on Justice and Public Safety, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division. The report shall include the identity of each entity that received a grant through the program, the amount of funding provided to each entity that received a grant, the use of funds by each entity that received a grant, and recommendations for the implementation of additional effective school safety measures.

SECTION 7.27.(m)  Section 8.36 of S.L. 2013‑360 is repealed.

 

PART VIII. COMPENSATION OF PUBLIC SCHOOL EMPLOYEES

 

TEACHER SALARY SCHEDULE

SECTION 8.1.(a)  The following monthly teacher salary schedule shall apply for the 2018‑2019 fiscal year to licensed personnel of the public schools who are classified as teachers. The salary schedule is based on years of teaching experience.

2018‑2019 Teacher Monthly Salary Schedule

Years of Experience                                                              "A" Teachers

0                                                                                         $3,500

1                                                                                         $3,600

2                                                                                         $3,700

3                                                                                         $3,800

4                                                                                         $3,900

5                                                                                         $4,000

6                                                                                         $4,100

7                                                                                         $4,200

8                                                                                         $4,300

9                                                                                         $4,400

10                                                                                       $4,500

11                                                                                       $4,600

12                                                                                       $4,700

13                                                                                       $4,800

14                                                                                       $4,900

15‑24                                                                                 $5,000

25+                                                                                    $5,200.

SECTION 8.1.(b)  Salary Supplements for Teachers Paid on This Salary Schedule. –

(1)        Licensed teachers who have NBPTS certification shall receive a salary supplement each month of twelve percent (12%) of their monthly salary on the "A" salary schedule.

(2)        Licensed teachers who are classified as "M" teachers shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the "A" salary schedule.

(3)        Licensed teachers with licensure 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 supplement provided to them as "M" teachers.

(4)        Licensed teachers with licensure 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 supplement provided to them as "M" teachers.

(5)        Certified school nurses shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the "A" salary schedule.

SECTION 8.1.(c)  The first step of the salary schedule for (i) school psychologists, (ii) school speech pathologists who are licensed as speech pathologists at the master's degree level or higher, and (iii) school audiologists who are licensed as audiologists at the master's degree level or higher shall be equivalent to the sixth step of the "A" salary schedule. These employees shall receive a salary supplement each month of ten percent (10%) of their monthly salary and are eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six‑year degree level or the doctoral degree level.

SECTION 8.1.(d)  The twenty‑sixth step of the salary schedule for (i) school psychologists, (ii) school speech pathologists who are licensed as speech pathologists at the master's degree level or higher, and (iii) school audiologists who are licensed as audiologists at the master's degree level or higher shall be seven and one‑half percent (7.5%) higher than the salary received by these same employees on the twenty‑fifth step of the salary schedule.

SECTION 8.1.(e)  Beginning with the 2014‑2015 fiscal year, in lieu of providing annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule.

SECTION 8.1.(f)  A teacher compensated in accordance with this salary schedule for the 2018‑2019 school year shall receive an amount equal to the greater of the following:

(1)        The applicable amount on the salary schedule for the applicable school year.

(2)        For teachers who were eligible for longevity for the 2013‑2014 school year, the sum of the following:

a.         The salary the teacher received in the 2013‑2014 school year pursuant to Section 35.11 of S.L. 2013‑360.

b.         The longevity that the teacher would have received under the longevity system in effect for the 2013‑2014 school year provided in Section 35.11 of S.L. 2013‑360 based on the teacher's current years of service.

c.         The annual bonus provided in Section 9.1(e) of S.L. 2014‑100.

(3)        For teachers who were not eligible for longevity for the 2013‑2014 school year, the sum of the salary and annual bonus the teacher received in the 2014‑2015 school year pursuant to Section 9.1 of S.L. 2014‑100.

SECTION 8.1.(g)  As used in this section, the term "teacher" shall also include instructional support personnel.

SECTION 8.1.(h)  Section 8.1 of S.L. 2017‑57 is repealed.

 

PRINCIPAL SALARY SCHEDULE

SECTION 8.2.(a)  The following annual salary schedule for principals shall apply for the 2018‑2019 fiscal year, beginning July 1, 2018.

2018‑2019 Principal Annual Salary Schedule

Avg. Daily Membership              Base                      Met Growth         Exceeded Growth

0‑400                                       $66,010                 $72,611                 $79,212

401‑700                                   $69,311                 $76,242                 $83,173

701‑1,000                                $72,611                 $79,872                 $87,133

1,001‑1,300                             $75,912                 $83,503                 $91,094

1,301+                                     $79,212                 $87,133                 $95,054.

A principal's placement on the salary schedule shall be determined according to the average daily membership of the school supervised by the principal, as described in subsection (b) of this section, and the school growth scores, calculated pursuant to G.S. 115C‑83.15(c), for each school the principal supervised in at least two of the prior three school years, as described in subsection (c) of this section, regardless of a break in service, and provided the principal supervised each school as a principal for at least a majority of the school year, as follows:

(1)        A principal shall be paid according to the Exceeded Growth column of the schedule if the school growth scores show the school or schools exceeded expected growth in at least two of the prior three school years.

(2)        A principal shall be paid according to the Met Growth column of the schedule if any of the following apply:

a.         The school growth scores show the school or schools met expected growth in at least two of the prior three school years.

b.         The school growth scores show the school or schools met expected growth in at least one of the prior three school years and exceeded expected growth in one of the prior three school years.

c.         The principal supervised a school in at least two of the prior three school years that was not eligible to receive a school growth score.

(3)        A principal shall be paid according to the Base column if either of the following apply:

a.         The school growth scores show the school or schools did not meet expected growth in at least two of the prior three years.

b.         The principal has not supervised any school as a principal for a majority of the school year in at least two of the prior three school years.

SECTION 8.2.(b)  For purposes of determining the average daily membership of a principal's school, the following amounts shall be used during the following time periods:

(1)        Between July 1, 2018, and December 31, 2018, the average daily membership for the school from the 2017‑2018 school year.

(2)        Between January 1, 2019, and June 30, 2019, the average daily membership for the school for the 2018‑2019 school year.

SECTION 8.2.(c)  For purposes of determining the school growth scores for each school the principal supervised in at least two of the prior three school years, the following school growth scores shall be used during the following time periods:

(1)       Between July 1, 2018, and December 31, 2018, the school growth scores from the 2014‑2015, 2015‑2016, and 2016‑2017 school years.

(2)        Between January 1, 2019, and June 30, 2019, the school growth scores from the 2015‑2016, 2016‑2017, and 2017‑2018 school years.

SECTION 8.2.(d)  Beginning with the 2017‑2018 fiscal year, in lieu of providing annual longevity payments to principals paid on the principal salary schedule, the amounts of those longevity payments are included in the annual amounts under the principal salary schedule.

SECTION 8.2.(e)  A principal compensated in accordance with this section for the 2018‑2019 fiscal year shall receive an amount equal to the greater of the following:

(1)        The applicable amount determined pursuant to subsection (a) of this section.

(2)        For principals who were eligible for longevity in the 2016‑2017 fiscal year, the sum of the following:

a.         The salary the principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

b.         The longevity that the principal would have received as provided for State employees under the North Carolina Human Resources Act for the 2016‑2017 fiscal year based on the principal's current years of service.

(3)        For principals who were not eligible for longevity in the 2016‑2017 fiscal year, the salary the principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

SECTION 8.2.(f)  G.S. 115C‑325.1(2) reads as rewritten:

"(2)      "Demote" means to reduce the salary of a person who is classified or paid by the State Board of Education as a classroom teacher or as a school administrator during the time of the contract. The word "demote" does not include (i) the following:

a.         a A suspension without pay pursuant to G.S. 115C‑325.5(a); (ii)G.S. 115C‑325.5(a).

b.         theThe elimination or reduction of bonus payments, including merit‑based supplements or a systemwide modification in the amount of any applicable local supplement; (iii)supplement.

c.         anyAny reduction in salary that results from the elimination of a special duty, such as the duty of an athletic coach or a choral director; or (iv)director.

d.         anyAny reduction of pay as compared to a prior term of contract.

e.         Any reduction in a principal's salary resulting from a reduction in State funds due to (i) school growth scores, as provided in the Principal Salary Schedule, or (ii) a decline in the average daily membership of the principal's school."

SECTION 8.2.(g)  Section 8.3 of S.L. 2017‑57 is repealed.

 

PRINCIPAL BONUSES

SECTION 8.3.(a)  The Department of Public Instruction shall administer a bonus in the 2018‑2019 fiscal year to any principal who supervised a school as a principal for a majority of the previous school year if that school was in the top fifty percent (50%) of school growth in the State during the previous school year, calculated by the State Board pursuant to G.S. 115C‑83.15(c), as follows:

2018‑2019 Principal Bonus Schedule

Statewide Growth Percentage                                             Bonus

Top 5%                                                                       $10,000

Top 10%                                                                     $7,500

Top 15%                                                                     $5,000

Top 20%                                                                     $2,500

Top 50%                                                                     $1,000.

A principal who qualifies for a bonus pursuant to this subsection and supervised a school with an overall school performance grade, as calculated by the State Board pursuant to G.S. 115C‑83.15(d), of D or F for a majority of the 2017‑2018 school year shall qualify for a bonus of twice the amount listed in the 2018‑2019 Principal Bonus Schedule. A principal shall receive no more than one bonus pursuant to this subsection. The bonus shall be paid at the highest amount for which the principal qualifies.

SECTION 8.3.(b)  The bonus awarded pursuant to this section shall be in addition to any regular wage or other bonus the principal receives or is scheduled to receive.

SECTION 8.3.(c)  Notwithstanding G.S. 135‑1(7a), the bonus awarded pursuant to this section is not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System.

SECTION 8.3.(d)  The bonus awarded pursuant to this section does not apply to principals no longer employed as a principal due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to October 1, 2018.

SECTION 8.3.(e)  It is the intent of the General Assembly that funds provided to local school administrative units pursuant to this section will supplement principal compensation and not supplant local funds.

SECTION 8.3.(f)  The bonus provided pursuant to this section shall be paid no later than October 31, 2018, to qualifying principals employed as of October 1, 2018.

SECTION 8.3.(g)  Section 8.4 of S.L. 2017‑57 is repealed.

 

ASSISTANT PRINCIPAL SALARIES

SECTION 8.4.(a)  For the 2018‑2019 fiscal year, beginning July 1, 2018, assistant principals shall receive a monthly salary based on the salary schedule for teachers who are classified as "A" teachers plus nineteen percent (19%). Years of experience for an assistant principal on the salary schedule shall be measured by the total number of years the assistant principal has spent as a teacher, an assistant principal, or both. For purposes of this section, an administrator with a one‑year provisional assistant principal's certificate shall be considered equivalent to an assistant principal.

SECTION 8.4.(b)  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 8.4.(c)  Participants in an approved full‑time master's in‑school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the master's program. The stipend shall not exceed the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, and books and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full‑time master's in‑school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.

SECTION 8.4.(d)  Beginning with the 2017‑2018 fiscal year, in lieu of providing annual longevity payments to assistant principals on the assistant principal salary schedule, the amounts of those longevity payments are included in the monthly amounts provided to assistant principals pursuant subsection (a) of this section.

SECTION 8.4.(e)  An assistant principal compensated in accordance with this section for the 2018‑2019 fiscal year shall receive an amount equal to the greater of the following:

(1)        The applicable amount determined pursuant to subsections (a) through (c) of this section.

(2)        For assistant principals who were eligible for longevity in the 2016‑2017 fiscal year, the sum of the following:

a.         The salary the assistant principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

b.         The longevity that the assistant principal would have received as provided for State employees under the North Carolina Human Resources Act for the 2016‑2017 fiscal year based on the assistant principal's current years of service.

(3)        For assistant principals who were not eligible for longevity in the 2016‑2017 fiscal year, the salary the assistant principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

SECTION 8.4.(f)  Section 8.5 of S.L. 2017‑97 is repealed.

 

CENTRAL OFFICE SALARIES

SECTION 8.5.(a)  The monthly salary ranges that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2018‑2019 fiscal year, beginning July 1, 2018:

                                                                     2018‑2019 Fiscal Year

                                                               Minimum                    Maximum

School Administrator I                             $3,596           to            $6,631

School Administrator II                            $3,804           to            $7,026

School Administrator III                          $4,030           to            $7,446

School Administrator IV                          $4,186           to            $7,737

School Administrator V                           $4,351           to            $8,045

School Administrator VI                          $4,608           to            $8,523

School Administrator VII                         $4,787           to            $8,862.

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 8.5.(b)  The monthly salary ranges that follow apply to public school superintendents for the 2018‑2019 fiscal year, beginning July 1, 2018:

                                                                     2018‑2019 Fiscal Year

                                                               Minimum                    Maximum

Superintendent I                                       $5,074           to            $9,394

Superintendent II                                      $5,379           to            $9,954

Superintendent III                                     $5,698           to          $10,551

Superintendent IV                                    $6,040           to          $11,185

Superintendent V                                      $6,403           to          $11,859.

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 8.5.(c)  Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the North Carolina Human Resources Act.

SECTION 8.5.(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 8.5.(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 8.5.(f)  Section 8.6 of S.L. 2017‑57 is repealed.

 

NONCERTIFIED PERSONNEL SALARIES

SECTION 8.6.(a)  For the 2018‑2019 fiscal year, beginning July 1, 2018, the annual salary for noncertified public school employees whose salaries are supported from State funds shall be increased as follows:

(1)        For permanent, full‑time employees on a 12‑month contract, by two percent (2%).

(2)        For the following employees, by a prorated and equitable amount based on the amount specified in subdivision (1) of this subsection:

a.         Permanent, full‑time employees on a contract for fewer than 12 months.

b.         Permanent, part‑time employees.

c.         Temporary and permanent hourly employees.

SECTION 8.6.(b)  Of the funds appropriated in this act for salary increases for noncertified personnel in the 2018‑2019 fiscal year, in lieu of the salary increases provided in subsection (a) of this section, the sum of four million three hundred eighty‑seven thousand six hundred fifty dollars ($4,387,650) shall be allocated to local boards of education to increase the average rates of pay for all school bus drivers in the local school administrative unit on an equitable basis.

SECTION 8.6.(c)  Section 8.7 of S.L. 2017‑57 is repealed.

 

REALIGN DPI BUDGET IN CERTAIN SCHOOL COMPENSATION AREAS

SECTION 8.7.  In accordance with the State Budget Act and Chapter 143C of the General Statutes, the Department of Public Instruction, in consultation with the Office of State Budget and Management, shall review and realign the Department's budget as part of the certification of that budget for the 2018‑2019 fiscal year, without adjusting its total requirements, based on actual and anticipated expenditures occurring in the 2017‑2019 fiscal biennium in the following areas:

(1)        Bonuses provided to teachers and principals.

(2)        Salaries provided to teachers, instructional support personnel, principals, and assistant principals.

(3)        Salary supplements provided to certain highly qualified teaching graduates.

(4)        Annual leave and longevity pay.

(5)        Benefits costs associated with subdivisions (1) through (4) of this subsection.

(6)       Unemployment costs.

 

CLARIFY APPLICATION OF HIGHLY QUALIFIED GRADUATE SUPPLEMENT

SECTION 8.8.  Section 8.2A(b) of S.L. 2017‑57, as enacted by Section 2.3(b) of S.L. 2017‑212, reads as rewritten:

"SECTION 8.2A.(b)  This section is effective when it becomes law and applies to teachers entering the profession in the 2017‑2018 fiscal year hired on or after that date.date and entering the profession in the 2017‑2019 fiscal biennium."

 

BONUSES FOR CERTAIN VETERAN TEACHERS

SECTION 8.9.(a)  Effective July 1, 2018, Section 8.8A of S.L. 2017‑57, as amended by Section 2.10A of S.L. 2017‑197, is repealed.

SECTION 8.9.(b)  Of the funds appropriated to the Department of Public Instruction by this act for the compensation of teachers in the 2018‑2019 fiscal year, the Department shall provide a one‑time lump sum bonus by October 31, 2018, in the amount of three hundred eighty‑five dollars ($385.00) to any teacher who meets all of the following requirements:

(1)        Is employed as of October 1, 2018.

(2)        Has at least 25 years of teaching experience.

(3)        Did not receive an increase in State‑funded salary pursuant to the 2018‑2019 Teacher Monthly Salary Schedule.

SECTION 8.9.(c)  The bonus awarded pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive.

SECTION 8.9.(d)  Notwithstanding G.S. 135‑1(7a), the bonuses awarded pursuant to this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System.

 

REVISE CERTAIN TEACHER BONUS PROGRAMS

SECTION 8.10.(a)  Effective for bonuses awarded in January 2020, based on data from the 2018‑2019 school year, Section 8.8(a)(1) of S.L. 2016‑94, as amended by Section 8.8B(a) of S.L. 2017‑57, reads as rewritten:

"(1)      A bonus in the amount of fifty dollars ($50.00) for each student taught by an advanced course teacher in each advanced course who receives the following score:

a.         For Advanced Placement courses, a score of three or higher on the College Board Advanced Placement Examination.

b.         For International Baccalaureate Diploma Programme courses, a score of four or higher on the International Baccalaureate course examination.

c.         For the Cambridge Advanced International Certificate of Education (AICE) program, a score of "E""C" or higher on the Cambridge AICE program examinations."

SECTION 8.10.(b)  Section 8.8(a)(3) of S.L. 2016‑94, as amended by Section 8.8B(a) of S.L. 2017‑57, reads as rewritten

"(3)      Bonuses A bonus awarded pursuant to this subsection are is payable in January, based on data from the previous school year, to a qualifying teachers teacher who remain remains employed teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same charter school at least from the school year the data is collected until January 1 of the corresponding school year that the bonus is paid."

SECTION 8.10.(c)  Section 8.9(a)(4) of S.L. 2016‑94, as amended by Section 8.8B(b) of S.L. 2017‑57, reads as rewritten:

"(4)      Bonuses A bonus awarded pursuant to this subsection are is payable in January to a qualifying teachers teacher who remain remains employed teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same charter school at least from the school year the data is collected until January 1 of the corresponding school year that the bonus is paid."

SECTION 8.10.(d)  Section 8.8C(a)(1)b. of S.L. 2017‑57 reads as rewritten:

"b.        Qualifying Teacher. – An eligible teacher who remains teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same school at least from the school year the data for the EVAAS student growth index score for third grade reading is collected until January 1 of the school year a bonus provided under this subsection is paid."

SECTION 8.10.(e)  Except as otherwise provided, this section applies for bonuses awarded in January 2019 and 2020, based on data from the 2017‑2018 and 2018‑2019 school years, respectively.

 

REVISE FOURTH AND FIFTH GRADE READING TEACHER BONUS PROGRAM

SECTION 8.11.(a)  Section 8.8D of S.L. 2017‑57 reads as rewritten:

"FOURTH AND FIFTH GRADE READING TEACHER BONUS PROGRAM FOR 2017‑2018

"SECTION 8.8D.(a)  It is the intent of the State to reward teacher performance and encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer the Fourth and Fifth Grade Reading Teacher Bonus Program (program) for the 2017‑2018 fiscal year to qualifying teachers who have an Education Value‑Added Assessment System (EVAAS) student growth index score for fourth or fifth grade reading from the previous school year, as follows:

(1)        For purposes of this section, the following definitions shall apply:

a.         Eligible Teacher. – A teacher who meets one or both of the following criteria:

1.         Is in the top twenty‑five percent (25%) of teachers in the State according to the EVAAS student growth index score for fourth or fifth grade reading from the previous school year.

2.         Is in the top twenty‑five percent (25%) of teachers in the teacher's respective local school administrative unit according to the EVAAS student growth index score for fourth or fifth grade reading from the previous school year.

b.         Qualifying Teacher. – An eligible teacher who remains teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same school at least from the school year the data for the EVAAS student growth index score is collected until January 1 of the school year a bonus provided under this subsection is paid.

(2)        Of the funds appropriated for this program, the Department of Public Instruction shall allocate the sum of four million seven hundred thirty‑five thousand four hundred sixteen four million two hundred ninety‑eight thousand seven hundred thirty‑eight dollars ($4,735,416) ($4,298,738) to award a bonus in the amount of two thousand one hundred fifty dollars ($2,150) ($2,000) to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision (1)a.1. of this subsection.

(3)        Of the funds appropriated for this program, the Department of Public Instruction shall allocate the sum of four million seven hundred thirty‑five thousand four hundred sixteen four million two hundred ninety‑eight thousand seven hundred thirty‑eight dollars ($4,735,416) ($4,298,738) to award a bonus in the amount of two thousand one hundred fifty dollars ($2,150) ($2,000) to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision (1)a.2. of this subsection, subject to the following conditions:

a.         Teachers employed in charter schools, regional schools, and University of North Carolina laboratory schools are not eligible to receive a bonus under this subdivision.

b.         Any qualifying teacher who taught in a local school administrative unit that employed in the previous school year three or fewer total teachers in the qualifying teacher's grade level shall receive a bonus under this subdivision if that teacher has an EVAAS student growth index score for fourth or fifth grade reading from the previous school year of exceeded expected growth.

(4)        Bonuses awarded pursuant to subdivisions (2) and (3) of this subsection are payable in January to qualifying teachers based on EVAAS student growth index score data from the previous school year.

(5)        A qualifying teacher may receive a bonus under both subdivisions (2) and (3) of this subsection.

(6)        The bonus or bonuses awarded to a qualifying teacher pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive.

(7)        No teacher shall receive more than two bonuses pursuant to this section.

"SECTION 8.8D.(b)  Notwithstanding G.S. 135‑1(7a), the bonuses awarded by this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System.

"SECTION 8.8D.(c)  The State Board of Education shall study the effect of the bonuses awarded pursuant to this section on teacher performance and retention. The State Board shall report the results of its findings, the distribution of statewide bonuses as among local school administrative units, and the distribution of bonuses within local school administrative units as among individual schools to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by March 15, 2018.15 of each year bonuses are awarded."

SECTION 8.11.(b)  This section applies for bonuses awarded in January 2019 and 2020, based on data from the 2017‑2018 and 2018‑2019 school years, respectively.

 

REVISE FOURTH TO EIGHTH GRADE MATH TEACHER BONUS PROGRAM

SECTION 8.12.(a)  Section 8.8E of S.L. 2017‑57 reads as rewritten:

"FOURTH TO EIGHTH GRADE MATH TEACHER BONUS PROGRAM FOR 2017‑2018

"SECTION 8.8E.(a)  It is the intent of the State to reward teacher performance and encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer the Fourth to Eighth Grade Mathematics Teacher Bonus Program (program) for the 2017‑2018 fiscal year to qualifying teachers who have an Education Value‑Added Assessment System (EVAAS) student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year, as follows:

(1)        For purposes of this section, the following definitions shall apply:

a.         Eligible Teacher. – A teacher who meets one or both of the following criteria:

1.         Is in the top twenty‑five percent (25%) of teachers in the State according to the EVAAS student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year.

2.         Is in the top twenty‑five percent (25%) of teachers in the teacher's respective local school administrative unit according to the EVAAS student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year.

b.         Qualifying Teacher. – An eligible teacher who remains teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same school at least from the school year the data for the EVAAS student growth index score is collected until January 1 of the school year a bonus provided under this subsection is paid.

(2)        Of the funds appropriated for this program, the Department of Public Instruction shall allocate the sum of seven million nine hundred thirty‑five thousand one hundred seventy‑eightseven million one hundred fifty‑one thousand two hundred sixty‑two dollars ($7,935,178)($7,151,262) to award a bonus in the amount of two thousand one hundred fifty dollars ($2,150)($2,000) to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision (1)a.1. of this subsection.

(3)        Of the funds appropriated for this program, the Department of Public Instruction shall allocate the sum of seven million nine hundred thirty‑five thousand one hundred seventy‑eightseven million one hundred fifty‑one thousand two hundred sixty‑two dollars ($7,935,178)($7,151,262) to award a bonus in the amount of two thousand one hundred fifty dollars ($2,150)($2,000) to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision (1)a.2. of this subsection, subject to the following conditions:

a.         Teachers employed in charter schools, regional schools, and University of North Carolina laboratory schools are not eligible to receive a bonus under this subdivision.

b.         Any qualifying teacher who taught in a local school administrative unit that employed in the previous school year three or fewer total teachers in the qualifying teacher's grade level shall receive a bonus under this subdivision if that teacher has an EVAAS student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year of exceeded expected growth.

(4)        Bonuses awarded pursuant to subdivisions (2) and (3) of this subsection are payable in January to qualifying teachers based on EVAAS student growth index score data from the previous school year.

(5)        A qualifying teacher may receive a bonus under both subdivisions (2) and (3) of this subsection.

(6)        The bonus or bonuses awarded to a qualifying teacher pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive.

(7)        No teacher shall receive more than two bonuses pursuant to this section.

"SECTION 8.8E.(b)  Notwithstanding G.S. 135‑1(7a), the bonuses awarded by this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System.

"SECTION 8.8E.(c)  The State Board of Education shall study the effect of the bonuses awarded pursuant to this section on teacher performance and retention. The State Board shall report the results of its findings, the distribution of statewide bonuses as among local school administrative units, and the distribution of bonuses within local school administrative units as among individual schools to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by March 15, 2018.15 of each year bonuses are awarded."

SECTION 8.12.(b)  This section applies for bonuses awarded in January 2019 and 2020, based on data from the 2017‑2018 and 2018‑2019 school years, respectively.

 

PART IX. COMMUNITY COLLEGES

 

EXTEND REORGANIZATION AUTHORITY

SECTION 9.1.  Section 9.1 of S.L. 2017‑57 reads as rewritten:

"SECTION 9.1.(a)  Notwithstanding For the 2017‑2019 fiscal biennium, notwithstanding any other provision of law and consistent with the authority established in G.S. 115D‑3, the President of the North Carolina Community College System may reorganize the System Office in accordance with recommendations and plans submitted to and approved by the State Board of Community Colleges.

"SECTION 9.1.(b)  By April 1, 2018, and by April 1, 2019, the President of the North Carolina Community Colleges shall report for each fiscal year of the fiscal biennium any reorganization, including any movement of positions and funds between fund codes on a recurring basis, to the Joint Legislative Education Oversight Committee, the House Appropriations Committee on Education, the Senate Appropriations Committee on Education/Higher Education, and the Fiscal Research Division.

"SECTION 9.1.(c)  Subsection (a) of this section expires June 30, 2018."

 

CONTINUE TRANSFER OF WIOA FUNDS FOR APPRENTICESHIPNC

SECTION 9.2.  Consistent with the transfer of funds from the North Carolina Department of Commerce to the Community Colleges System Office for the 2018‑2019 fiscal year authorized by S.L. 2017‑57, of the Workforce and Innovation and Opportunity Act federal funds awarded to the Department in a fiscal year, the sum of three hundred fifty thousand dollars ($350,000) shall continue to be transferred to the System Office for the administration of the ApprenticeshipNC program in each fiscal year.

 

REMOVE OUTDATED STATUTORY REFERENCE

SECTION 9.3.  G.S. 115D‑21.5 reads as rewritten:

"§ 115D‑21.5.  NC Works Career Coach Program.

(a)        Purpose. – There is established the NC Works Career Coach Program to place community college career coaches in high schools to assist students with determining career goals and identifying community college programs that would enable students to achieve these goals.

(b)        Memorandum of Understanding. – The board of trustees of a community college and a local board of education of a local school administrative unit within the service area of the community college shall enter into a memorandum of understanding for the placement of career coaches employed by the board of trustees of the community college in schools within the local school administrative unit. At a minimum, the memorandum of understanding shall include the following:

(1)        Requirement that the community college provides the following:

a.         Hiring, training, and supervision of career coaches. The board of trustees may include a local board of education liaison on the hiring committee to participate in the decision making regarding hiring for the coach positions.

b.         Salary, benefits, and all other expenses related to the employment of the career coach. The coach will be an employee of the board of trustees and will not be an agent or employee of the local board of education.

c.         Development of pedagogical materials and technologies needed to enhance the advising process.

d.         Criminal background checks required by the local school administrative unit for employees working directly with students.

e.         Agreement that, while on any school campus, the career coach will obey all local board of education rules and will be subject to the authority of the school building administration.

(2)        Requirement that the local school administrative unit provides the following to career coaches:

a.         Access to student records, as needed to carry out the coach's job responsibilities.

b.         Office space on site appropriate for student advising.

c.         Information technology resources, including, but not limited to, Internet access, telephone, and copying.

d.         Initial school orientation and ongoing integration into the faculty and staff community.

e.         Promotion of school‑wide awareness of coach duties.

f.          Facilitation of coach's access to individual classes and larger assemblies for the purposes of awareness‑building.

(c)        Application for NC Works Career Coach Program Funding. – The board of trustees of a community college and a local board of education of a local school administrative unit within the service area of the community college jointly may apply for available funds for NC Works Career Coach Program funding from the State Board of Community Colleges. The State Board of Community Colleges shall establish a process for award of funds as follows:

(1)        Advisory committee. – Establishment of an advisory committee, which shall include representatives from the NC Community College System, the Department of Public Instruction, the NC Works initiative located in the Department of Commerce, and at least three representatives of the business community, to review applications and make recommendations for funding awards to the State Board.

(2)        Application submission requirements. – The State Board of Community Colleges shall require at least the following:

a.         Evidence of a signed memorandum of understanding that meets, at a minimum, the requirements of this section.

b.         Evidence that the funding request will be matched dollar‑for‑dollar with local funds. Matching funds may come from public or private sources.

(3)        Awards criteria. – The State Board of Community Colleges shall develop criteria for consideration in determining the award of funds that shall include the following:

a.         Consideration of the workforce needs of business and industry in the region.

b.         Targeting of resources to enhance ongoing economic activity within the community college service area and surrounding counties.

c.         Geographic diversity of awards.

(d)       Annual Report. –

(1)        The board of trustees of a community college that employs one or more career coaches shall report annually to the State Board of Community Colleges on implementation and outcomes of the program, including the following information:

a.         Number of career coaches employed.

b.         Number of local school administrative units served and names of schools in which career coaches are placed.

c.         Number of students annually counselled by career coaches.

d.         Impact of career coaches on student choices, as determined by a valid measure selected by the State Board of Community Colleges.

(2)        The State Board of Community Colleges shall report annually no later than October 1 to the Joint Legislative Education Oversight Committee on the following:

a.         A compilation of the information reported by the board of trustees of community colleges, as provided in subdivision (1) of this subsection.

b.         Number and names of partnership applicants for NC Works Career Coach Program funding.

c.         Number, names, and amounts of those awarded NC Works Career Coach Program funding."

 

EXTEND CAREER‑ AND COLLEGE‑READY GRADUATE PROGRAM IMPLEMENTATION DATE

SECTION 9.4.  Section 10.13 of S.L. 2015‑241, as amended by Section 10.5 of S.L. 2016‑94, reads as rewritten:

"SECTION 10.13.(a)  The State Board of Community Colleges, in consultation with the State Board of Education, shall develop a program for implementation beginning with model programs in the 2016‑2017 school year that introduces the college developmental mathematics and developmental reading and English curriculums in the high school senior year and provides opportunities for college remediation for students prior to high school graduation through cooperation with community college partners. Professional development for high school faculty shall begin with the 2018‑2019 school year. The program shall be phased in by cohorts developed by the Department of Public Instruction beginning with the 2019‑2020 school year. The program shall be fully implemented in all high schools statewide beginning with the 2018‑20192020‑2021 school year. Students who are enrolled in the Occupational Course of Study to receive their high school diplomas shall not be required to participate in the program or be required to take mandatory remedial courses as provided for in this section, unless a parent specifically requests through the individualized education program (IEP) process that the student participates. The program shall require the following:

(1)        Establishment by the State Board of Community Colleges of measures for determining student readiness and preparation for college coursework by using ACT scores, student grade point averages, or other measures currently used by the State Board of Community Colleges to determine college readiness for entering students.

(2)        Changes in curriculum, policy, and rules as needed by the State Board of Community Colleges and State Board of Education to make remedial courses mandatory for students who do not meet readiness indicators by their junior year to ensure college readiness prior to high school graduation. These changes shall include the flexibility for students to fulfill senior mathematics and English graduation requirements through enrollment in mandatory remedial courses or to enroll in those courses as electives.

(3)        High schools to use curriculum approved by the State Board of Community Colleges, in consultation with the State Board of Education.

(4)        Determinations by the State Board of Community Colleges on the following:

a.         Appropriate measures of successful completion of the remedial courses to ensure students are prepared for coursework at a North Carolina community college without need for further remediation in mathematics or reading and English.

b.         The length of time following high school graduation in which a student who successfully completed high school remedial courses will not be required to enroll in developmental courses at a North Carolina community college.

(5)        Delivery of remedial courses by high school faculty consistent with policies adopted by the State Board of Community Colleges and the State Board of Education. The policies shall include, at a minimum, the following requirements:

a.         High school faculty teaching the approved remedial courses must successfully complete training requirements as determined by the State Board of Community Colleges, in consultation with the State Board of Education.

b.         The North Carolina Community College System shall provide oversight ofperiodically review the remedial courses and professional development requirements to ensure appropriate instructional delivery.

"SECTION 10.13.(b)  The State Board of Community Colleges and the State Board of Education shall report on progress of implementation of the program statewide, including the requirements in subsection (a) of this section, to the Joint Legislative Education Oversight Committee no later than March 15, 2016. The State Board of Community Colleges and the State Board of Education shall jointly report to the Joint Legislative Education Oversight Committee as follows:

(1)        No later than March 15, 2017, on the outcomes of model programs implemented in the 2016‑2017 school year and suggested statutory changes to ensure successful implementation of the program statewide.

(2)        No later than March 15, 2018, on implementation and professional development efforts in the 2017‑2018 school year and information on final changes in curriculum, policy, and rules to ensure successful implementation of the program statewide in the 2018‑2019 school year.statewide.

(2a)      No later than March 15, 2019, on implementation and professional development efforts in the 2018‑2019 school year and information on final changes in curriculum, policy, and rules to ensure successful implementation of the program statewide.

(3)        No later than October 15, 2019,2020, and annually thereafter, on program outcomes, including impact on remediation rates by high school in both mathematics and reading and English for recent high school graduates entering a North Carolina community college or constituent institution of The University of North Carolina."

 

REDUCE FUNDS FOR BOARD OF POSTSECONDARY Education CREDENTIALS

SECTION 9.5.  Section 9.11(c) of S.L. 2017‑57 reads as rewritten:

"SECTION 9.11.(c)  Of the funds appropriated by this act for the 2017‑2019 fiscal biennium to the Community Colleges System Office, the sum of three hundred fifty thousand dollars ($350,000) for the 2017‑2018 fiscal year and the sum of threetwo hundred fiftyeighty thousand dollars ($350,000)($280,000) for the 2018‑2019 fiscal year shall be allocated to the Board of Postsecondary Education Credentials to be used to cover operating expenses of the Board, including expenses for staff and consultants to assist the Board in carrying out its purpose and duties."

 

ELIMINATE NCCCS INSTRUCTIONAL TRUST FUND

SECTION 9.6.(a)  G.S. 115D‑42 is repealed.

SECTION 9.6.(b)  The cash balance remaining in the North Carolina Community Colleges Instructional Trust Fund in Budget Code 66800, Fund Code 6125, shall be transferred to the Board of Governors of The University of North Carolina for the 2018‑2019 fiscal year to be allocated to the State Education Assistance Authority to award tuition grants to State residents who are graduates of the North Carolina School of Science and Mathematics pursuant to Section 10A.5 of this act.

 

COMMUNITY COLLEGE RESIDENCY DETERMINATION FORMULA

SECTION 9.7.(a)  The State Board of Community Colleges shall develop a funding formula for computing The North Carolina Community College System costs of the residency determination service, administered by the State Education Assistance Authority pursuant to G.S. 116‑204, for the purposes of potential inclusion of the formula in future enrollment growth requests. The Community Colleges System Office shall not include the funding formula in an enrollment request to the General Assembly prior to submitting the report required by subsection (b) of this section.

SECTION 9.7.(b)  By December 1, 2018, the State Board of Community Colleges shall submit a report on the proposed funding formula developed under subsection (a) of this section to the Joint Legislative Education Oversight Committee, the House Appropriations Committee on Education, the Senate Appropriations Committee on Education/Higher Education, the Fiscal Research Division, and the Office of State Budget and Management.

SECTION 9.7.(c)  If the Community Colleges System Office includes the funding formula when submitting an enrollment request for the 2019‑2020 fiscal year or subsequent fiscal years to the General Assembly following the report required under subsection (b) of this section, the System Office shall distinguish in that request the portion of its request resulting from the formula.

 

INCENTIVES FOR INSTITUTIONAL PERFORMANCE ACCOUNTABILITY

SECTION 9.8.  G.S. 115D‑31.3(g) reads as rewritten:

"(g)      Recognition of Successful Institutional Performance. – For the purpose of recognition of successful institutional performance, the State Board of Community Colleges shall evaluate each college on the performance measures set out in subsection (e) of this section. Subject to the availability of funds, the State Board may allocate funds among colleges based on the evaluation of each institution's performance, including at least the following components:

(1)        Program quality evaluated by determining a college's rate of student success on each measure as compared to a systemwide performance baseline and goal.

(2)        Program impact on student outcomes evaluated by the number of students succeeding on each measure.

A college may use funds allocated to it pursuant to this subsection for one‑time, performance‑based bonuses for faculty and staff. Notwithstanding G.S. 135‑1(7a), a bonus awarded with funds pursuant to this subsection is not compensation under Article 1 of Chapter 135 of the General Statutes."

 

MITIGATION OF LOSS OF FEDERAL FUNDS TO ADULT EDUCATION PROVIDERS for one year

SECTION 9.9.(a)  Of the funds appropriated to the Community Colleges System Office by this act for the 2018‑2019 fiscal year, the sum of up to two million dollars ($2,000,000) shall be used for the 2018‑2019 fiscal year to allocate funds to adult education providers that received federal grant funds for the 2017‑2018 fiscal year that will not receive federal funds for the 2018‑2019 fiscal year due to changes in federal law requirements under the Adult Education and Family Literacy Act, Title II of the Workforce Innovation and Opportunity Act. These funds shall be allocated to an adult education provider in an amount not to exceed seventy‑five percent (75%) of the total amount of federal grant funds awarded to the provider for the 2017‑2018 fiscal year.

SECTION 9.9.(b)  The funds allocated in accordance with this section shall be used for the 2018‑2019 fiscal year by adult education providers to mitigate the impact on students currently enrolled in their programs while adult education providers adjust programs in accordance with their available funds for subsequent fiscal years.

 

COMMUNITY COLLEGE STUDY ON EARNING FTE FOR INSTRUCTION IN LOCAL JAILS

SECTION 9.10.(a)  The State Board of Community Colleges shall study the cost of earning regular budget full‑time equivalents (FTE) for community college courses offered in local jails, including projections for future fiscal years with potential expansion of correction education programs. The study shall also include the cost of reporting FTE student hours for correction education programs on the basis of student membership hours instead of contact hours for courses offered (i) in State prisons and (ii) in local jails, if the General Assembly were to authorize FTE to be earned for those courses.

SECTION 9.10.(b)  By December 1, 2018, the State Board of Community Colleges shall report on the study required by subsection (a) of this section to the Joint Legislative Education Oversight Committee, the House Appropriations Committee on Education, the Senate Appropriations Committee on Education/Higher Education, the Fiscal Research Division, and the Office of State Budget and Management.

 

PART X. UNIVERSITIES

 

UNC LABORATORY SCHOOL Changes

SECTION 10.1.(a)  G.S. 116‑239.8(b)(4) reads as rewritten:

"(4)      Food and transportation services. – The local school administrative unit in which the laboratory school is located shall continue to provide food services and transportation to students attending the laboratory school. The local school administrative unit in which the laboratory school is located shall administer the National School Lunch Program for the laboratory school in accordance with G.S. 115C‑264. The chancellor shall arrange for the provision of these services from the local school administrative unit."

SECTION 10.1.(b)  G.S. 116‑239.9 reads as rewritten:

"§ 116‑239.9.  Student admissions and assignment.

(a)        AnyA child shall be eligible to attend a laboratory school who is residingif the child resides in athe local school administrative unit in which a laboratory school is located and (i) is enrolled in meets at least one of the following criteria:

(1)        Is assigned to a low‑performing school, as defined by G.S. 115C‑105.37 at the time of the student's application, or application.

(2)        (ii) didDid not meet expected growth in the prior school year based on one or more indicators listed in subsection (c1) of this sectionsection.

(3)        is eligible to attend the laboratory school.Is the sibling of a child who is eligible under subdivision (1) or (2) of this subsection.

(b)        No local board of education shall require any student enrolled in the local school administrative unit to attend a laboratory school.

(c)        During each period of enrollment, the laboratory school shall enroll an eligible student under subsection (a) of this section who submits a timely application, up to the capacity of a program, class, grade level, or building, in the order in which applications are received. Once enrolled, students are not required to reapply in subsequent enrollment periods. The laboratory school may give enrollment priority to the sibling of an enrolled student who attended the laboratory school in the prior school year.

(c1)      For the purposes of this Article, any of the following shall serve as indicators that a student did not meet expected student growth in the prior school year: (i) grades, (ii) observations, (iii) diagnostic and formative assessments, (iv) State assessments, or (v) other factors, including reading on grade level.

(d)       Notwithstanding any law to the contrary, a laboratory school may refuse admission to any student who has been expelled or suspended from a public school under G.S. 115C‑390.5 through G.S. 115C‑390.11 until the period of suspension or expulsion has expired."

SECTION 10.1.(c)  G.S. 116‑239.12(c) reads as rewritten:

"(c)      The chancellor shall require the person to be checked by the Department of Public Safety (i) to be fingerprinted and to provide any additional information required by the Department of Public Safety to a person designated by the chancellor or to the local sheriffsheriff, the campus police department of the constituent institution, or the municipal police, whichever is more convenient for the person and (ii) to sign a form consenting to the check of the criminal record and to the use of fingerprints and other identifying information required by the repositories. The chancellor shall consider refusal to consent when making employment decisions and decisions with regard to independent contractors. The fingerprints of the individual shall be forwarded to the State Bureau of Investigation for a search of the State criminal history record file, and the State Bureau of Investigation shall forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The Department of Public Safety shall provide to the chancellor the criminal history from the State and National Repositories of Criminal Histories of any school personnel for which the chancellor requires a criminal history record check.

The chancellor shall not require school personnel to pay for fingerprints authorized under this section."

SECTION 10.1.(d)  G.S. 116‑239.13(2) reads as rewritten:

"(2)      The public school student admissions process and the number of students enrolled under the categoryfollowing categories at each laboratory school:

a.         (i) studentsStudents who were previously enrolled inassigned to a low‑performing school andschool.

b.         (ii) studentsStudents who did not meet expected student growth in the school year prior to enrollmentenrollment.

c.         at each laboratory school.Siblings of an otherwise eligible student."

SECTION 10.1.(e)  This section applies beginning with the 2018‑2019 school year.

 

FERRYMON/NO OVERHEAD

SECTION 10.2.  The University of North Carolina at Chapel Hill shall not charge indirect facilities and administrative costs against the funding provided by this act to the Institute of Marine Sciences at the University of North Carolina at Chapel Hill for the FerryMon ferry‑based water quality monitoring program.

 

Modify Appointment Process For BOG Committee on Free Expression

SECTION 10.3.  G.S. 116‑301(a) reads as rewritten:

"(a)      The chair of the Board of Governors of The University of North Carolina System shall establishdesignate a standing or special committee of the Board of Governors to act as the Committee on Free Expression and appoint 11 individuals from among its membership to the Committee. The members of the Committee on Free Expression shall elect a chair from the members of the Committee. Each member of the Committee on Free Expression shall serve on the Committee at the pleasure of the Board of Governors. Each member's term shall be equal to the remainder of the member's respective term on the Board of Governors. In the event of a vacancy on the Committee, the Board of Governors shall appoint a replacement from among its membership.Expression."

 

FOOD PROCESSING INNOVATION CENTER/CARRYFORWARD OF FUNDS

SECTION 10.4.(a)  The funds appropriated to the Board of Governors of The University of North Carolina for the 2017‑2019 fiscal biennium by S.L. 2017‑57 to be allocated to North Carolina State University for the Food Processing Innovation Center (Center) to be housed at the North Carolina Research Campus may be used for equipment, supplies, and other operating expenses related to the Center until renovations of the space are completed and the lease payments begin for the space. In addition to funds authorized to be carried forward under G.S. 116‑30.3, North Carolina State University may carry forward any of the funds allocated for the purposes set forth in this subsection that are unexpended each fiscal year until the end of the fiscal year in which renovations of the space to be leased by North Carolina State University are completed by the North Carolina Research Campus and the City of Kannapolis.

SECTION 10.4.(b)  This section becomes effective June 30, 2018.

 

NC PROMISE "BUY DOWN"/Report

SECTION 10.5.  G.S. 116‑143.11 reads as rewritten:

"§ 116‑143.11.  NC Promise Tuition Plan; State "buy down" of certain financial obligations.

(b)        Notwithstanding any other provision of law, the State shall "buy down" the amount of any financial obligation resulting from the established tuition rate that may be incurred by Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University as provided by this subsection. Beginning with the 2018‑2019 fiscal year, the Director of the Budget shall determine each fiscal year, based on information provided by the Board of Governors and the Chancellor of each constituent institution, the amount required to offset the forgone tuition receipts at each of the three institutions as a result of the tuition rate established by this section. The Director of the Budget shall authorize an increase in the base budget of The University of North Carolina of up to forty million dollars ($40,000,000) each fiscal year to cover the cost of the "buy down" that fiscal year and shall allocate the appropriate sum to each constituent institution. Any increase in the base budget authorized pursuant to this subsection shall not be included in the calculation of projected enrollment growth under G.S. 116‑30.7.University.

(d)       By October 1, 2018, and by October 1 of each year thereafter, the Board of Governors and the chancellors of Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University, respectively, shall submit a report to the Joint Legislative Education Oversight Committee, the House Appropriations Committee on Education, the Senate Appropriations Committee on Education/Higher Education, and the Fiscal Research Division on the amount of any financial obligation resulting from the established tuition rate incurred at each constituent institution and at least the following information for the fiscal year:

(1)        The amount required to offset the forgone tuition receipts at each of the three constituent institutions as a result of the tuition rate established by this section and how those funds were allocated to each constituent institution.

(2)        The number of enrolled resident students at each constituent institution.

(3)        The number of enrolled nonresident students at each constituent institution."

 

SUBPART X‑A. UNIVERSITY/STATE EDUCATION ASSISTANCE AUTHORITY

 

MODIFY AND ALIGN THE K‑12 SCHOLARSHIP PROGRAMS

SECTION 10A.1.(a)  G.S. 115C‑112.5(2)f.1. reads as rewritten:

"1.        Was enrolled in a North Carolina public school or a Department of Defense Elementary and Secondary School, established pursuant to 10 U.S.C. § 2164 and located in North Carolina, during the previous semester. The Authority shall not count actual days of attendance to determine whether a child was enrolled in a qualifying school for the previous semester for the purposes of eligibility under this sub‑sub‑subdivision."

SECTION 10A.1.(b)  G.S. 115C‑112.5(2)f., as amended by subsection (a) of this section, reads as rewritten:

"f.        Meets at least one of the following requirements:

7.         Is a child in foster care as defined in G.S. 131D‑10.2(9).

8.         Is a child whose adoption decree was entered not more than one year prior to submission of the scholarship application."

SECTION 10A.1.(c)  G.S. 115C‑112.6 reads as rewritten:

"§ 115C‑112.6.  Scholarships.

(a)        Scholarship Applications. – The Authority shall make available no later than May 1 February 1 annually applications to eligible students for the award of scholarships. Information about scholarships and the application process shall be made available on the Authority's Web site.

(a2)      Priority of Awards. – The Authority shall award scholarships according to the following criteria for applications received by June March 15 each year:

(1)        First priority shall be given to eligible students who received a scholarship during the previous semester.school year.

(2)        After scholarships have been awarded under subdivision (1) of this subsection, scholarships shall be awarded to students who are eligible under G.S. 115C‑112.5(2)f.1., 2., 4., and 5.5., 7., and 8.

(3)        After scholarships have been awarded under subdivision (2) of this subsection, scholarships shall be awarded to students who are eligible under G.S. 115C‑112.5(2)f.6.

Scholarships shall be awarded to eligible students in each subdivision of this subsection in the order in which the applications are received.

(b)        Scholarship Awards. – Scholarships awarded to eligible students shall be for amounts of not more than four eight thousand dollars ($4,000)($8,000) per semester year per eligible student. Eligible students awarded scholarships may not be enrolled in a public school to which that student has been assigned as provided in G.S. 115C‑366. Scholarships shall be awarded only for tuition and for the reimbursement of special education, related services, and educational technology, as provided in subsection (b1) of this section. The Authority shall notify parents in writing of their eligibility to receive scholarships for costs that will be incurred during the spring semester of the following year by December 1 and for costs incurred during the fall semester of that year school year by July 1.

(b1)      Disbursement of Scholarship Funds. – The Authority shall disburse scholarship funds for tuition and for the reimbursement of costs incurred by the parent of an eligible student as follows:

(2)        Scholarship reimbursements for costs. – Scholarship reimbursement for costs incurred shall be provided as follows:

a.         Preapproval process. – Prior to the start of each school semester, the parent of an eligible student may submit documentation of the special education, related services, or educational technology the parent anticipates incurring costs on in that semester for preapproval by the Authority.

b.         Reimbursement submissions. – Following the conclusion of each school semester, the parent of an eligible student shall submit to the Authority any receipts or other documentation approved by the Authority to demonstrate the costs incurred during the semester. In addition, parents shall provide documentation of the following to seek reimbursement:

1.         Special education reimbursement. – Parents may only receive reimbursement for special education if the parent provides documentation that the student received special education for no less than 75 days of the semester for which the parent seeks reimbursement. Special education reimbursement shall not be provided for special education instruction provided to a home schooled student by a member of the household of a home school, as defined in G.S. 115C‑563(a).

2.         Related services reimbursement. – Parents may only receive reimbursement for related services if the parent provides documentation that the student also received special education for no less than 75 days of the semester for which the parent seeks reimbursement for the related services. Related services reimbursement shall not be provided for related services provided to a home schooled student by a member of the household of a home school, as defined in G.S. 115C‑563(a).

3.         Educational technology reimbursement. – Parents may only receive reimbursement for educational technology if the parent provides documentation that the student used the educational technology for no less than 75 days of the semester for which the parent seeks reimbursement.

c.         Scholarship award. – The Authority shall award a scholarship in the amount of costs demonstrated by the parent up to the maximum amount. If the costs incurred by the parent do not meet the maximum amount for the fall semester, the Authority shall use the remainder of those funds for the award of scholarships to eligible students for the following spring semester. The Authority shall award scholarships to the parents of eligible students at least semiannually.

d.         Carryforward of funds for reimbursements. – Any unexpended scholarship funds at the end of each fiscal year shall revert to the General Fund, except that the Authority may carry forward for the next fiscal year an amount necessary to ensure that any outstanding, allowable reimbursements can be disbursed in accordance with this section. Any funds carried forward for the purpose of meeting anticipated reimbursement obligations from the prior fiscal year that are not expended shall not be used to award additional scholarships to eligible students but shall revert to the General Fund at the end of that fiscal year.

(b2)      Establishment of Initial Eligibility. – An applicant may demonstrate for initial eligibility that the applicant is a child with a disability, as required by G.S. 115C‑112.5(2)a., in either of the following ways:

(1)        The child has been assessed by a local education agency and determined to be a child with a disability and that outcome is verified by the local education agency on a form provided to the Authority.

(2)        The child was initially assessed by a local education agency and determined to be a child with a disability and, following receipt of a scholarship awarded pursuant to Article 41 of this Chapter, was determined to have continuing eligibility, as provided in G.S. 115C‑593(2), by the assessing psychologist or psychiatrist. Both the initial verification from the local education agency and the continuing verification by the assessing psychologist or psychiatrist shall be provided on a form to the Authority.

(c)        Student Continuing Eligibility. – After an eligible student's initial receipt of a scholarship, the Authority shall ensure that the student's continuing eligibility is assessed at least every three years by one of the following:

(1)        The local educational agency. – The local school educational agency shall assess if the child continues to be a child with a disability and verify the outcome on a form to be provided to the Authority.

(2)        A licensed psychologist with a school psychology focus or a psychiatrist. – The psychologist or psychiatrist shall assess, after review of appropriate medical and educational records, if the education and related services received by the student in the nonpublic school setting have improved the child's educational performance and if the student would continue to benefit from placement in the nonpublic school setting. The psychologist or psychiatrist shall verify the outcome of the assessment on a form to be provided to the Authority.

(d)       Rule Making. – The Authority shall establish rules and regulations for the administration and awarding of scholarships.scholarships and may include in those rules a lottery process for selection of scholarship recipients within the criteria established by this section. The Authority shall adopt rules providing for pro rata return of funds if a student withdraws prior to the end of the semester from a school to which scholarship funds have been remitted. The Authority shall annually develop a list of educational technology for which scholarships may be used and shall provide scholarship recipients with information about the list.

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

SECTION 10A.1.(d)  G.S. 115C‑112.8 reads as rewritten:

"§ 115C‑112.8.  Authority reporting requirements.

(a)        The Authority shall report annually, no later than October 1,15, to the Joint Legislative Education Oversight Committee on the Special Education Scholarships for Children with Disabilities.

(b)        The annual report shall include all of the following information:information from the prior school year:

(1)        Total number, age, and grade level of eligible students receiving scholarships.

(2)        Total amount of scholarship funding awarded.

(3)        Nonpublic schools in which scholarship recipients are enrolled and the number of scholarship students at that school.

(4)        The type of special education or related services for which scholarships were awarded.

(5)        Total number of applicants by eligibility type, as listed in G.S. 115C‑112.5(2)f., and the total number of scholarships awarded by priority type, as listed in G.S. 115C‑112.6(a2)."

SECTION 10A.1.(e)  G.S. 115C‑562.7(b) reads as rewritten:

"(b)      The Authority shall report annually, no later than April 1,October 15, to the Joint Legislative Education Oversight Committee on the following:following information from the prior school year:

(1)        Total number, grade level, race, ethnicity, and sex of eligible students receiving scholarship grants.

(2)        Total amount of scholarship grant funding awarded.

(3)        Number of students previously enrolled in local school administrative units or charter schools in the prior semester by the previously attended local school administrative unit or charter school.

(4)        Nonpublic schools in which scholarship grant recipients are enrolled, including numbers of scholarship grant students at each nonpublic school.

(5)        Nonpublic schools deemed ineligible to receive scholarships."

SECTION 10A.1.(f)  G.S. 115C‑592 reads as rewritten:

"§ 115C‑592.  Award of scholarship funds for a personal education savings account.

(b)        Scholarship Awards. – Scholarships shall be awarded each year for an amount not to exceed nine thousand dollars ($9,000) per eligible student for the fiscal year in which the application is received. Recipients shall receive scholarship funds deposited in equal amounts to a PESA in each quarter of the fiscal year. The first deposit of funds to a PESA shall be subject to the execution of the parental agreement required by G.S. 115C‑595. The parent shall then receive a debit card or an electronic account with the prepaid funds loaded on the card or in the electronic account at the beginning of the fiscal year. After the initial disbursement of funds, each subsequent, quarterly disbursement of funds shall be subject to the submission by the parent of an expense report. The expense report shall be submitted electronically and shall include documentation that the student received an education, as described in G.S. 115C‑595(a)(1), for no less than 35 days of the applicable quarter. The debit card or the electronic account shall be renewed upon the receipt of the parental agreement under G.S. 115C‑595 for recipients awarded scholarship funds in subsequent fiscal years. Any funds remaining on the card or in the electronic account at the end of the fiscal year may be carried forward to the next fiscal year if the card or electronic account is renewed. Any funds remaining on the card or in the electronic account if an agreement is not renewed shall be returned to the Authority.

(e)        Establishment of Initial Eligibility. – An applicant may demonstrate for initial eligibility that the applicant is a child with a disability, as required by G.S. 115C‑591(3)c., in either of the following ways:

(1)        The child has been assessed by a local education agency and determined to be a child with a disability and that outcome is verified by the local education agency on a form provided to the Authority.

(2)        The child was initially assessed by a local education agency and determined to be a child with a disability and, following receipt of a scholarship awarded pursuant to Part 1H of Article 9 of this Chapter, was determined to have continuing eligibility, as provided in G.S. 115C‑112.6(c)(2), by the assessing psychologist or psychiatrist. Both the initial verification from the local education agency and the continuing verification by the assessing psychologist or psychiatrist shall be provided on a form to the Authority."

SECTION 10A.1.(g)  G.S. 115C‑598 reads as rewritten:

"§ 115C‑598.  Reporting requirements.

The Authority shall report annually, no later than September 1,October 15, to the Joint Legislative Education Oversight Committee on the following:following information from the prior school year:

(1)        Total number, grade level, race, ethnicity, and sex of eligible students receiving scholarship funds.

(2)        Total amount of scholarship funding awarded.

(3)        Number of students previously enrolled in public schools in the prior semester by the previously attended local education agency.

(4)        Nonpublic schools in which scholarship recipients are enrolled, including numbers of scholarship recipients at each nonpublic school.

(5)        The number of substantiated cases of fraud by recipients and the number of parents or students removed from the program for noncompliance with the provisions of this Article."

SECTION 10A.1.(h)  Subsection (a) of this section becomes effective the date this act becomes law and applies to any student who was otherwise eligible to receive a scholarship pursuant to Part 1H of Article 9 of Chapter 115C of the General Statutes on or after January 1, 2017, for any scholarship application for the 2018‑2019 school year or later. A student who becomes eligible for a scholarship in the 2018‑2019 school year solely due to subsection (a) of this section shall receive priority in award of scholarships over all applicants except those previously awarded scholarships. Subsections (b) and (c) of this section apply beginning with scholarship applications for the 2019‑2020 school year. Subsection (f) of this section applies beginning with the award of scholarship funds for the 2018‑2019 school year.

 

CHANGES TO THE NC TEACHING FELLOWS PROGRAM

SECTION 10A.2.(a)  G.S. 116‑209.62 reads as rewritten:

"§ 116‑209.62.  North Carolina Teaching Fellows Program established; administration.

(b)        Trust Fund. – There is established the North Carolina Teaching Fellows Program Trust Fund to be administered by the Authority, in conjunction with the General Administration of The University of North Carolina. All funds (i) appropriated to, or otherwise received by, the Program for forgivable loans,loans and other Program purposes, (ii) received as repayment of forgivable loans, and (iii) earned as interest on these funds shall be placed in the Trust Fund. The purpose of the Trust Fund is to provide financial assistance to qualified students for completion of teacher education and licensure programs to fill STEM or special education licensure areas in the public schools of the State.

(c)        Uses of Monies in the Trust Fund. – The monies in the Trust Fund may be used only for (i) forgivable loans granted under the Program, (ii) administrative costs associated with the Program, including recruitment and recovery of funds advanced under the Program, (iii) mentoring and coaching support to forgivable loan recipients, and (iii)(iv) extracurricular enhancement activities of the Program.Program in accordance with the following:

(1)        The Authority may use up to shall transfer the greater of six hundred thousand dollars ($600,000) or ten percent (10%) of the available funds from the Trust Fund in to the General Administration of The University of North Carolina at the beginning of each fiscal year for its the Program's administrative costs, the salary of the Director of the Program, Program and other Program staff, expenses of the Commission, and to provide the Commission with funds to use for the extracurricular enhancement activities of the Program.

(2)        The Authority may use the greater of two hundred fifty thousand dollars ($250,000) or four percent (4%) of the funds appropriated to the Trust Fund each fiscal year for administrative costs associated with the Program.

(3)        The Authority shall provide the Commission with up to six hundred thousand dollars ($600,000) from the Trust Fund in each fiscal year for the Commission to provide mentoring and coaching support to forgivable loan recipients through the North Carolina New Teacher Support Program as follows:

a.         Up to two thousand dollars ($2,000) for each Program recipient serving as a teacher in a North Carolina public school identified as low‑performing under G.S. 115C‑105.37.

b.         Up to one thousand dollars ($1,000) for each Program recipient serving as a teacher in a North Carolina public school not identified as low‑performing under G.S. 115C‑105.37.

(g)        Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected students to be used at the five selected institutions for completion of a program leading to initial teacher licensure as follows:

(1)        North Carolina high school seniors. – Forgivable loans of up to eight four thousand two one hundred fifty twenty‑five dollars ($8,250)($4,125) per year semester for up to four years.eight semesters.

(2)        Students applying for transfer to a selected educator preparation program at an institution of higher education. – Forgivable loans of up to eight four thousand two one hundred fifty twenty‑five dollars ($8,250)($4,125) per year semester for up to three years.six semesters.

(3)        Individuals currently holding a bachelor's degree seeking preparation for teacher licensure. – Forgivable loans of up to eight four thousand two one hundred fifty twenty‑five dollars ($8,250)($4,125) per year semester for up to two years.four semesters.

(4)        Students matriculating at institutions of higher education who are changing to enrollment in a selected educator preparation program. – Forgivable loans of up to eight four thousand two one hundred fifty twenty‑five dollars ($8,250)($4,125) per year semester for up to two years.four semesters.

Forgivable loans may be used for tuition, fees, and the cost of books.books, and expenses related to obtaining licensure.

(j)         Annual Report. – The Commission, in coordination with the Authority, the Department of Public Instruction, and the selected educator education programs participating in the Program shall report no later than January 1, 2019, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the following:

(2a)      Mentoring and coaching support through the North Carolina New Teacher Support Program, including the following:

a.         Number of forgivable loan recipients who received mentoring and coaching support when employed at a low‑performing school identified under G.S. 115C‑105.37.

b.         Number of forgivable loan recipients who received mentoring and coaching support when employed at a school not identified as low‑performing under G.S. 115C‑105.37.

(3)        Selected school outcomes by program, including the following:

a.         Turnover rate for forgivable loan graduates.graduates, including the turnover rate for graduates who also received mentoring and coaching support through the North Carolina New Teacher Support Program.

b.         Aggregate information on student growth and proficiency as provided annually by the State Board of Education to the Commission in courses taught by forgivable loan graduates.

c.         Fulfillment rate of forgivable loan graduates."

SECTION 10A.2.(b)  G.S. 116‑209.63(a) reads as rewritten:

"(a)      Notes. – All forgivable loans shall be evidenced by notes made payable to the Authority that bear interest at a rate not to exceed ten percent (10%) per year as set by the Authority and beginning on the first day of September after the completion of the program leading to teacher licensure or 90 days after termination of the forgivable loan, whichever is earlier.graduation, whichever is later. If a forgivable loan is terminated, the note shall be made payable to the Authority 90 days after termination of the forgivable loan. The forgivable loan may be terminated upon the recipient's withdrawal from school the Program or by the recipient's failure to meet the standards set by the Commission."

SECTION 10A.2.(c)  G.S. 115C‑472.16(b) reads as rewritten:

"(b)      The General Assembly shall only appropriate moneys in the North Carolina Education Endowment Fund for (i) the forgivable loans for the North Carolina Teaching Fellows Program Program, (ii) funds to provide mentoring and coaching support to North Carolina Teaching Fellows Program forgivable loan recipients through the North Carolina New Teacher Support Program, and (iii) administration of the North Carolina Teaching Fellows Program under Part 3 of Article 23 of Chapter 116 of the General Statutes."

SECTION 10A.2.(d)  Section 10A.3(h) of S.L. 2017‑57 reads as rewritten:

"SECTION 10A.3.(h)  For the 2017‑2018 fiscal year, the Department of Public Instruction shall transfer the sum of four hundred fifty thousand dollars ($450,000) in nonrecurring funds from the North Carolina Education Endowment Fund to the Board of Governors of The University of North Carolina to allocate to the Authority to be used to implement the North Carolina Teaching Fellows Program (Program), as established by this section. Beginning with the 2018‑2019 fiscal year, the Department of Public Instruction shall transfer the sum of six million dollars ($6,000,000) in recurring funds from the North Carolina Education Endowment Fund to the Board of Governors to be allocated to the Authority for the operation of the Program and for the award of forgivable loans to selected recipients beginning with the 2018‑2019 academic year.recipients. The Authority may use funds appropriated in the 2018‑2019 fiscal year for the award of forgivable loans to selected recipients (i) for academic programs during the 2017‑2018 fiscal year that began after May 1, 2018, and (ii) for the 2018‑2019 academic year."

 

CHANGES TO THE NC PRINCIPAL FELLOWS PROGRAM

SECTION 10A.3.(a)  G.S. 116‑74.41(a1) is repealed.

SECTION 10A.3.(b)  G.S. 116‑74.42 reads as rewritten:

"§ 116‑74.42.  Principal Fellows Program established; administration.

(a)        Program. – A Principal Fellows Program shall be administered by the North Carolina Principal Fellows Commission in collaboration with the State Education Assistance Authority. The Principal Fellows Program shall provide up to a two‑year scholarship loan to selected recipients and shall provide extracurricular enhancement activities for recipients. The North Carolina Principal Fellows Commission shall determine selection criteria, methods of selection, and shall select recipients to receive scholarship loans made under the Principal Fellows Program.

(a1)      Trust Fund. – The Principal Fellows Trust Fund (Trust Fund) shall be an institutional trust fund established pursuant to G.S. 116‑36.1. All funds appropriated to, or otherwise received by, the Principal Fellows Program for scholarships and other program purposes, all funds received as repayment of scholarship loans, and all interest earned on these funds shall be placed in the Trust Fund.

(a2)      Use of Monies in the Trust Fund. – The monies in the Trust Fund may be used only for scholarship loans granted under the Principal Fellows Program, administrative costs, and costs associated with program operations in accordance with this Article. The Authority may use up to eight hundred thousand dollars ($800,000) from the Trust Fund each fiscal year for (i) its administrative costs, including recovery of funds advanced under the program; (ii) the salary and benefits of the director of the program; (iii) the expenses of the Commission, including applicant recruitment; and (iv) funds provided to the Commission for program monitoring and evaluation and extracurricular enhancement activities for program recipients.

(b)        Director. – The Board of Governors of The University of North Carolina shall appoint a director of the Principal Fellows Program. The director shall chair and staff the Principal Fellows Commission, and shall administer the extracurricular enhancement activities of the program. The Board of Governors shall provide office space and clerical support staff for the program.

(c)        Eligibility for Scholarship Loans. – The Principal Fellows Program shall provide a two‑year scholarship loan in the amount specified in subsection (c1) of this section to persons who may be eligible to be selected as school administrators in the public schools of the State by completing a full‑time program in school administration in an approved program. Approved programs are those chosen by the Commission from among school administrator programs within the State. No more than 200 principal fellow scholarship loan awards shall be made in each year. The final number of scholarship loan awards per year shall be made in accordance with the Board of Governors' findings concerning the supply and demand of administrators, the State's need for school administrator candidates and within funds appropriated for the scholarship loans. Effective September 1, 1995, and in accordance with school administrator training programs established by the Board of Governors of The University of North Carolina, recipients shall be required to complete an approved full‑time academic program during the first year of the scholarship loan program and a full‑time internship during the second year of the program. In order to attract fellows as interns, local school administrative units may use all or part of the funds allotted for an assistant principal salary for each intern accepted by the local school administrative unit; however, interns shall not serve as assistant principals.

(c1)      Scholarship Loan Amount. – The scholarship loan shall be thirty thousand dollars ($30,000) per participant for the first year of participation. For the second year of participation, the amount of the scholarship loan per participant shall be sixty percent (60%) of the beginning salary for an assistant principal plus four thousand one hundred dollars ($4,100) for tuition, fees, and books. The Commission may adjust the amount of the scholarship loan specified in this subsection to take into account increases in tuition, fees, and the cost of books, increases in the State principal assistant salary schedule, and changes in the stipend paid to participants in the program during the second year internship.

(d)       Student Selection Criteria. – The Commission shall adopt stringent standards, which may include standardized test scores, undergraduate performance, job experience and performance, leadership and management abilities, and other standards deemed appropriate by the Commission, to ensure that only the best potential students receive scholarship loans under the Principal Fellows Program. The Commission shall consider the qualifications of all applicants fairly, regardless of gender or race, and shall consider the geographic diversity of the State. Scholarship loans under the Principal Fellows Program shall be awarded only to applicants who meet the standards set by the Commission, are domiciled in North Carolina, and who agree to work as school administrators in a North Carolina public school or at a school operated by the United States government in North Carolina upon completion of the two‑year school administrator program supported by the loan.

(e)        Program Selection. – The Commission shall develop and administer the Principal Fellows Program in cooperation with school administrator programs at institutions approved by the Commission. The Commission shall develop criteria and a process for the approval of campus program sites. Extracurricular enhancement activities shall be coordinated with each fellow's campus program and shall focus on the leadership development of program fellows.

(f)        Review Committees. – The Commission may form regional review committees to assist it in identifying the best applicants for the program. The Commission and the review committees shall make an effort to identify and encourage women and minorities and others who may not otherwise consider a career in school administration to apply for the Principal Fellows Program.

(g)        Administration of the Program. – Upon the naming of recipients of the scholarship loans by the Principal Fellows Commission, the Commission shall transfer to the State Education Assistance Authority (SEAA) its decisions. The SEAA shall perform all of the administrative functions necessary to implement this Article, which functions shall include: rule making, dissemination of information, disbursement, receipt, liaison with participating educational institutions, determination of the acceptability of service repayment agreements, and all other functions necessary for the execution, payment, and enforcement of promissory notes required under this Article."

SECTION 10A.3.(c)  G.S. 116‑74.43(c) is repealed.

 

PRINCIPAL PREP PROGRAM CHANGES

SECTION 10A.4.(a)  Subsections (a) through (j) of Section 11.9 of S.L. 2015‑241, as amended by Section 11A.4 of S.L. 2016‑94, Section 4.3 of S.L. 2016‑123, and Section 10A.5 of S.L. 2017‑57, are repealed.

SECTION 10A.4.(b)  Article 23 of Chapter 116 of the General Statutes is amended by adding a new Part to read:

"Part 4. Transforming Principal Preparation Grant Program.

"§ 116‑209.70.  Purpose and definitions.

(a)        Purpose. – The purpose of this Part is to establish the Transforming Principal Preparation Grant Program as a competitive grant program for eligible entities to elevate educators in North Carolina public schools by transforming the preparation of principals across the State. The Authority shall administer this Program through a cooperative agreement with a private, nonprofit corporation to provide funds for the preparation and support of highly effective future school principals in North Carolina.

(b)        Definitions. – For the purposes of this Part, the following definitions apply:

(1)        Eligible entity. – A for‑profit or nonprofit organization or an institution of higher education that has an evidence‑based plan for preparing school leaders who implement school leadership practices linked to increased student achievement.

(2)        High‑need local school administrative unit. – A local school administrative unit with the majority of its schools deemed to be high‑need schools as defined in subdivision (3) of this subsection.

(3)        High‑need school. – A public school, including a charter school, that meets one or more of the following criteria:

a.         Is a school identified under Part A of Title I of the Elementary and Secondary Education Act of 1965, as amended.

b.         Is a persistently low‑achieving school, as identified by the Department of Public Instruction for purposes of federal accountability.

c.         A middle school containing any of grades five through eight that feeds into a high school with less than a sixty percent (60%) four‑year cohort graduation rate.

d.         A high school with less than a sixty percent (60%) four‑year cohort graduation rate.

(4)        Principal. – The highest administrative official in a public school building with primary responsibility for the instructional leadership, talent management, and organizational development of the school.

(5)        Program. – Transforming Principal Preparation Grant Program established pursuant to this Part.

(6)        School leader. – An individual employed in a school leadership role, including principal or assistant principal roles.

(7)        Student achievement. – At the whole school level, after three years of leading a school, consistent and methodologically sound measures of:

a.         Student academic achievement.

b.         Aggregated individual student academic growth.

c.         Additional outcomes, such as high school graduation rates, the percentage of students taking advanced‑level coursework, or the percentage of students who obtain a career‑related credential through a national business certification exam.

"§ 116‑209.71.  Transforming Principal Preparation Grant Program established; administration.

(a)        Program Authorized. – The Authority shall award grants through the Transforming Principal Preparation Grant Program to eligible entities to support programs that develop well‑prepared school leaders in accordance with the provisions of this Part. The Authority shall establish any necessary rules to administer the Program.

(b)        Contract with a Nonprofit for Administration. – The Authority shall contract with a private, nonprofit corporation for the administration of the Program, including making recommendations to the Authority for the award of grants, as authorized by this Part. The nonprofit corporation contracting with the Authority shall meet at least the following requirements:

(1)        The nonprofit corporation shall be a nonprofit corporation organized pursuant to Chapter 55A of the General Statutes and shall comply at all times with the provisions of section 501(c)(3) of the Internal Revenue Code.

(2)        The nonprofit corporation shall employ sufficient staff who have demonstrated a capacity for the development and implementation of grant selection criteria and a selection process to promote innovative school leader education programs, including:

a.         Focus on school leader talent.

b.         Expertise supporting judgments about grant renewal based on achievement of or substantial school leader progress toward measurable results in student achievement.

c.         Expectation of creating positive experiences working with the educational community in North Carolina to establish the foundation for successfully administering the programs set forth in this section.

(3)        The nonprofit corporation shall comply with the limitations on lobbying set forth in section 501(c)(3) of the Internal Revenue Code.

(4)        No State officer or employee may serve on the board of the nonprofit corporation.

(5)        The board of the nonprofit corporation shall meet at least quarterly at the call of its chair.

"§ 116‑209.72.  Grant applications; priority.

(a)        Application Requirements. – Subject to the availability of funds for this purpose, the nonprofit corporation entering into a contract with the Authority under G.S. 116‑209.71 shall issue a request for proposal with guidelines and criteria for applying for a grant. An eligible entity that seeks a grant under the Program shall submit to the nonprofit corporation an application at such time, in such manner, and accompanied by such information as the nonprofit may require. An applicant shall include at least the following information in its application for consideration by the nonprofit corporation:

(1)        The extent to which the entity has a demonstrated record of preparing school leaders who implement school leadership practices linked to increased student achievement.

(2)        The extent to which the entity has a rigorous school leader preparation program design that includes the following research‑based programmatic elements:

a.         A proactive, aggressive, and intentional recruitment strategy.

b.         Rigorous selection criteria based on competencies that are predictive of success as a school leader, including, but not limited to, evidence of significant positive effect on student learning growth in the classroom, at the school‑level, and the local school administrative unit‑level, professional recommendations, evidence of problem solving and critical thinking skills, achievement drive, and leadership of adults.

c.         Alignment to high‑quality national standards for school leadership development.

d.         Rigorous coursework that effectively links theory with practice through the use of field experiences and problem‑based learning.

e.         Full‑time paid clinical practice of at least five months and 750 hours in duration in an authentic setting, including substantial leadership responsibilities where candidates are evaluated on leadership skills and effect on student outcomes as part of program completion.

f.          Multiple opportunities for school leader candidates to be observed and coached by program faculty and staff.

g.         Clear expectations for and firm commitment from school leaders who will oversee the clinical practice of candidates.

h.         Evaluation of school leader candidates during and at the end of the clinical practice based on the North Carolina School Executive Evaluation Rubric.

i.          A process for continuous review and program improvement based on feedback from partnering local school administrative units and data from program completers, including student achievement data.

j.          Established relationship and feedback loop with affiliated local school administrative units that is used to inform and improve programmatic elements from year to year based on units' needs.

(b)        Application Priority. – The nonprofit corporation shall evaluate the applicants for grants by giving priority to an eligible entity with a record of preparing principals demonstrating the following:

(1)        Improvement in student achievement.

(2)        Placement as school leaders in eligible schools.

(3)        A proposed focus on and, if applicable, a record of serving high‑need schools, high‑need local school administrative units, or both.

(4)        A detailed plan and commitment to share lessons learned and to improve the capacity of other entities in reaching similar outcomes.

(5)        A service area that is underserved by existing principal preparation programs or demonstrates unmet need despite current available programs.

"§ 116‑209.73.  Recipient selection; use of grant funds; duration of grants; reporting requirements.

(a)        Selection. – After evaluation of grant applications pursuant to G.S. 116‑209.72, the nonprofit corporation shall recommend to the Authority the recipients of grants under the Program for each fiscal year.

(b)        Use of funds. – Each eligible entity that receives grant funds shall use those funds to carry out the following:

(1)        Recruiting and selecting, based on a rigorous evaluation of the competencies of the school leader candidates participating in the program and their potential and desire to become effective school leaders.

(2)        Operating a school leader preparation program that provides the opportunity for all candidates to earn a master's degree, if they do not already have one, and subsequent principal licensure by doing the following:

a.         Utilizing a research‑based content and curriculum, including embedded participant assessments to evaluate candidates before program completion that prepares candidates to do the following:

1.         Provide instructional leadership, such as developing teachers' instructional practices and analyzing classroom and school‑wide data to support teachers.

2.         Manage talent, such as developing a high‑performing team.

3.         Build a positive school culture, such as building a strong school culture focused on high academic achievement for all students, including gifted and talented students, students with disabilities, and English learners, maintaining active engagement with family and community members, and ensuring student safety.

4.         Develop organizational practices, such as aligning staff, budget, and time to the instructional priorities of the school.

b.         Providing opportunities for sustained and high‑quality job‑embedded practice in an authentic setting where candidates are responsible for moving the practice and performance of a subset of teachers or for school‑wide performance as principal‑in‑planning or interim school leaders.

(3)        Collecting data on program implementation and program completer outcomes for continuous program improvement.

(c)        Duration of Grants. – The nonprofit corporation shall also recommend to the Authority the duration and renewal of grants to eligible entities according to the following:

(1)        The duration of grants shall be as follows:

a.         Grants shall be no more than five years in duration.

b.         The nonprofit corporation may recommend renewal of a grant based on performance, including allowing the grantee to scale up or replicate the successful program as provided in subdivision (2) of this subsection.

c.         The nonprofit shall develop a process with the Authority for early retrieval of grant funds from grant recipients due to noncompliance with grant terms, including participation in third‑party evaluation activities. Grantees shall develop and enforce requirements for program graduates to serve a minimum of four years as school‑based administrators in North Carolina. Requirements are subject to the approval of the nonprofit corporation.

(2)        In evaluating performance for purposes of grant renewal and making recommendations to the Authority, the nonprofit corporation shall consider at least the following:

a.         For all grantees, the primary consideration in renewing grants shall be the extent to which program participants improved student achievement in eligible schools.

b.         Other criteria from data received in the annual report in subsection (d) of this section may include the following:

1.         The percentage of program completers who are placed as school leaders in this State within three years of receiving a grant.

2.         The percentage of program completers who are rated proficient or above on the North Carolina School Executive Evaluation Rubric.

(d)       Reporting Requirements for Grant Recipients. – Recipients of grants under the program shall participate in all evaluation activities required by the nonprofit and submit an annual report to the nonprofit corporation contracting with the Authority with any information requested by the nonprofit corporation. The recipients shall comply with additional report requests made by the nonprofit. Whenever practicable and within a reasonable amount of time, grant recipients shall also make all materials developed as part of the program and with grant funds publically available to contribute to the broader sharing of promising practices. Materials shall not include personally identifiable information regarding individuals involved or associated with the program, including, without limitation, applicants, participants, supervisors, evaluators, faculty, and staff, without their prior written consent. The nonprofit corporation shall work with recipients, local school administrative units, and public schools, as needed, to enable the collection, analysis, and evaluation of at least the following relevant data, within necessary privacy constraints:

(1)        Student achievement in eligible schools.

(2)        The percentage of program completers who are placed as school leaders within three years in the State.

(3)        The percentage of program completers rated proficient or above on school leader evaluation and support systems.

(4)        The percentage of program completers that are school leaders who have remained employed in a North Carolina public school for two or more years of initial placement.

"§ 116‑209.74.  Reports.

The nonprofit corporation administering the Program shall provide the State Board of Education, the Authority, and the Joint Legislative Education Oversight Committee with the data collected from grant recipients in accordance with G.S. 116‑209.73 on an annual basis."

SECTION 10A.4.(c)  Section 11.9(l) of S.L. 2015‑241, as amended by Section 4.3 of S.L. 2016‑123, reads as rewritten:

"SECTION 11.9.(l)  Evaluation and Revision of Program. – The nonprofit corporation administering the program shall provide the State Board of Education and the Joint Legislative Education Oversight Committee with the data collected in accordance with subsection (j) of this section on an annual basis. By September 15, 2021, the State Board of Education, in coordination with the Board of Governors of The University of North Carolina, shall revise, as necessary, the licensure requirements for school administrators and the standards for approval of school administrator preparation programs after evaluating the data collected in accordance with G.S. 116‑209.73 from the grant recipients, including the criteria used in selecting grant recipients and the outcomes of program completers. The State Board of Education shall report to the Joint Legislative Education Oversight Committee by November 15, 2021, on any changes made to the licensure requirements for school administrators and the standards for approval of school administrator preparation programs in accordance with this section."

SECTION 10A.4.(d)  Section 11.9(m) of S.L. 2015‑241, as amended by Section 4.3 of S.L. 2016‑123 and Section 10A.5 of S.L. 2017‑57, reads as rewritten:

"SECTION 11.9.(m)  Of the funds appropriated by this act for the 2015‑2016 fiscal year for this program, the sum of five hundred thousand dollars ($500,000) shall be allocated to the State Education Assistance Authority to contract with the nonprofit corporation selected pursuant to subsection (e) of this section to establish and administer the program. The State Education Assistance Authority may use up to five percent (5%) of those funds for administrative costs.

Beginning with the 2017‑2018 fiscal year, of Of the funds appropriated eachfor the 2017‑2018 fiscal year for this program, the sum of three hundred eighty thousand dollars ($380,000) shall be allocated to the State Education Assistance Authority to contract with the nonprofit corporation selected pursuant to subsection (e) of this section to establish and administer the program. The State Education Assistance Authority may use up to fifteen thousand dollars ($15,000) of those funds for administrative costs.

Beginning with the 2018‑2019 fiscal year, of the funds appropriated each fiscal year for this program, as established under Part 4 of Article 23 of Chapter 116 of the General Statutes, the sum of three hundred eighty thousand dollars ($380,000) shall be allocated to the State Education Assistance Authority to contract with the nonprofit corporation in accordance with G.S. 116‑209.71 to establish and administer the program. The State Education Assistance Authority may use up to five percent (5%) of those funds for administrative costs."

SECTION 10A.4.(e)  Section 11.9(o) of S.L. 2015‑241, as enacted by Section 10A.5 of S.L. 2017‑57, reads as rewritten:

"SECTION 11.9.(o)  Beginning with the 2017‑2018 fiscal year, of the funds appropriated for this program, the sum of four million two hundred thousand dollars ($4,200,000) shall be allocated each fiscal year to the State Education Assistance Authority to award grants to selected recipients. Any unexpended funds appropriated to award grants to selected recipients remaining at the end of each fiscal year shall revert to the General Fund, except that the Authority may carry forward for the next fiscal year an amount necessary to ensure that any outstanding allowable reimbursements can be disbursed in accordance with this section. Any funds carried forward for the purpose of meeting anticipated reimbursement obligations from the prior fiscal year that are not expended shall not be used to award additional grants to grant recipients but shall revert to the General Fund at the end of the fiscal year."

SECTION 10A.4.(f)  Subsection (b) of this section applies to the administration of the program and the award of grants on or after July 1, 2018. Subsection (e) of this section becomes effective June 30, 2018.

 

ONE‑YEAR TUITION GRANTS FOR CERTAIN GRADUATES OF THE NORTH CAROLINA SCHOOL OF SCIENCE AND MATHEMATICS FOR THE 2019‑2020 ACADEMIC YEAR

SECTION 10A.5.(a)  Of the funds appropriated by this act to the Board of Governors of The University of North Carolina for the 2018‑2019 fiscal year, the sum of one million one thousand eight hundred sixty‑nine dollars ($1,001,869) in nonrecurring funds shall be allocated to the State Education Assistance Authority (Authority) to be held in reserve to provide tuition grants for one academic year to each State resident who graduates from the North Carolina School of Science and Mathematics at the end of the 2018‑2019 school year and who enrolls as a full‑time student in a constituent institution of The University of North Carolina for the 2019‑2020 academic year. Except as otherwise provided in this section, the amount of the grant awarded to each student shall cover the tuition cost at the constituent institution in which the student is enrolled.

SECTION 10A.5.(b)  The tuition grants provided for in this section shall be administered by the Authority pursuant to rules adopted by the Authority not inconsistent with this section. The Authority shall not approve any grant until it receives proper certification from the appropriate constituent institution that the student applying for the grant is an eligible student. Upon receipt of the certification, the Authority shall remit at the times it prescribes the grant to the constituent institution on behalf, and to the credit, of the student.

SECTION 10A.5.(c)  No tuition grant awarded to a student under this section shall exceed the cost of attendance at the constituent institution at which the student is enrolled. If a student, who is eligible for a tuition grant under this section, also receives a scholarship or other grant covering the cost of attendance at the constituent institution for which the tuition grant is awarded, then the amount of the tuition grant shall be reduced by an appropriate amount determined by the Authority. The Authority shall reduce the amount of the tuition grant so that the sum of all grants and scholarship aid covering the cost of attendance received by the student, including the tuition grant under this section, shall not exceed the cost of attendance for the constituent institution at which the student is enrolled. The cost of attendance, as used in this subsection, shall be determined by the Authority for each constituent institution.

SECTION 10A.5.(d)  In the event there are not sufficient funds to provide each eligible student with a full grant as provided by this section, the following applies:

(1)        The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the tuition grant program.

(2)        Each eligible student shall receive a pro rata share of funds available for the 2019‑2020 fiscal year covered by the appropriation for the 2018‑2019 fiscal year.

Any remaining funds shall revert to the General Fund.

SECTION 10A.5.(e)  The funds allocated in accordance with this section for the 2018‑2019 fiscal year shall not revert at the end of the 2018‑2019 fiscal year but shall remain available until the end of the 2019‑2020 fiscal year to implement this section.

 

ACCESS TO PRIVATE INSTITUTION NEED‑BASED SCHOLARSHIPS FOR VETERANS

SECTION 10A.6.(a)  G.S. 116‑280 is amended by adding a new subdivision to read:

"(8)      Veteran. – A veteran as defined in G.S. 116‑143.3A who was discharged or released from service under conditions other than dishonorable."

SECTION 10A.6.(b)  G.S. 116‑281 reads as rewritten:

"§ 116‑281.  Eligibility requirements for scholarships.

In order to be eligible to receive a scholarship under this Article, a student seeking a degree, diploma, or certificate at an eligible private postsecondary institution must meet all of the following requirements:

(1)        Only needy North Carolina students are eligible to receive scholarships. For purposes of this subsection, "needy North Carolina students" are those eligible students whose expected family contribution under the federal methodology does not exceed an amount as set annually by the Authority based upon costs of attendance at The University of North Carolina.

(2)        The student must meet all other eligibility requirements for the federal Pell Grant, with the exception of the expected family contribution.

(3)        The student must either (i) qualify as a legal resident of North Carolina and as a resident for tuition purposes under the criteria set forth in G.S. 116‑143.1 and in accordance with definitions of residency that may from time to time be adopted by the Board of Governors of The University of North Carolina.Carolina or (ii) be a veteran provided the veteran's abode is in North Carolina and the veteran provides the eligible private postsecondary institution a letter of intent to establish residency in North Carolina.

(4)        The student must meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status at an eligible private postsecondary institution.

(5)        In order to continue to be eligible for a scholarship for the student's second and subsequent academic years, the student must meet achievement standards by maintaining satisfactory academic progress in a course of study in accordance with the standards and practices used for federal Title IV programs by the eligible private postsecondary institution in which the student is enrolled.

(6)        Repealed by Session Laws 2013‑360, s. 11.15(e), effective for the 2014‑2015 academic year and each subsequent academic year."

SECTION 10A.6.(c)  This section applies beginning with the 2018‑2019 academic year.

 

PART XI. DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

SUBPART XI‑A. CENTRAL MANAGEMENT AND SUPPORT

 

HEALTH INFORMATION TECHNOLOGY

SECTION 11A.1.  G.S. 143B‑139.4D(b), as enacted by Section 11A.1 of S.L. 2017‑57, reads as rewritten:

"(b)      The Department, in cooperation with the Department of Information Technology, shall establish and direct a health information technology management structure that is efficient and transparent and that is compatible with the Office of the National Health Coordinator for Health Information Technology (National Coordinator) governance mechanism. The health information technology management structure shall be responsible for all of the following:

…."

 

RESTRICTION ON USE OF SALARY RESERVE BY DIVISION OF CENTRAL MANAGEMENT AND SUPPORT

SECTION 11A.2.  The Department of Health and Human Services, Division of Central Management and Support, shall not use salary reserve funds to establish new positions or to adjust the budgeted salary of existing positions within Fund Code 14410 until it hires a Director and all employees necessary to fulfill the duties of the Office of Program Evaluation Reporting and Accountability established under Part 31A of Article 3 of Chapter 143B of the General Statutes. The Department of Health and Human Services shall notify the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division when the Division of Central Management and Support has fulfilled this condition for using salary reserve funds. This section does not affect legislatively mandated salary increases.

 

REDUCTION OF FUNDS FOR PURCHASED SERVICES

SECTION 11A.3.  In addition to the reduction required under Section 11A.10 of S.L. 2017‑57, the Department of Health and Human Services, Division of Central Management and Support, shall reduce the amount of purchased services within the Division of Central Management and Support by reducing Fund Code 1120 by the sum of three hundred thousand dollars ($300,000) in recurring funds for the 2018‑2019 fiscal year. In making the reductions required by this section, the Department shall not reduce any funds (i) that impact direct services provided through contracts or (ii) used to support the 2012 settlement agreement entered into between the United States Department of Justice and the State of North Carolina to ensure that the State will willingly meet the requirements of the Americans with Disabilities Act of 1990, Section 504 of the Rehabilitation Act of 1973, and the United States Supreme Court decision in Olmstead v. L.C., 527 U.S. 581 (1999).

 

COMPETITIVE GRANT FUNDS/CROSS TRAIL OUTFITTERS

SECTION 11A.4.  Section 11A.14 of S.L. 2017‑57 reads as rewritten:

"SECTION 11A.14.(a)  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Central Management and Support, the sum of ten million six hundred fifty‑three thousand nine hundred eleven dollars ($10,653,911) for each year of the 2017‑2019 fiscal biennium, the sum of four million five hundred twenty‑four thousand five hundred twenty‑five dollars ($4,524,525) for each year of the 2017‑2019 fiscal bienniumthe 2017‑2018 fiscal year and the sum of four million seven hundred seventy‑four thousand five hundred twenty‑five dollars ($4,774,525) for the 2018‑2019 fiscal year appropriated in Section 11L.1 of this act in Social Services Block Grant funds, and the sum of one million six hundred thousand dollars ($1,600,000) for each year of 2017‑2019 fiscal biennium in Section 11L.1 of this act in Substance Abuse Prevention and Treatment Block Grant funds shall be used to allocate funds for nonprofit organizations.

"SECTION 11A.14.(e1)  For the 2018‑2019 fiscal year only, from the funds identified in subsection (a) of this section, the Department shall allocate the sum of two hundred fifty thousand dollars ($250,000) to Cross Trail Outfitters for purposes of promoting wellness and physical activity for youth seven to 20 years of age. Cross Trail Outfitters shall be required to seek future funding through the competitive grants process in accordance with subsection (b) of this section.

…."

 

CHILD WELFARE ASSIST PROGRAM

SECTION 11A.5.  From funds appropriated in this act to the Department of Health and Human Services, Division of Central Management and Support, the Department shall continue implementing the Child Welfare ASSIST (Accessing and Searching Sensitive Information for Safety through Technology) program established under Section 12C.1(e) of S.L. 2014‑100. The Department shall continue utilizing resources and subject matter expertise available through existing public‑private partnerships within the Government Data Analytics Center (GDAC) to develop and implement enhancements to Child Welfare ASSIST. The Department and GDAC shall execute any required interagency agreements by October 1, 2018.

 

SUBPART XI‑B. DIVISION OF CHILD DEVELOPMENT AND EARLY EDUCATION

 

ADJUSTMENTS TO NC PRE‑K FUNDING

SECTION 11B.1.(a)  G.S. 143B‑168.10B, as enacted by Section 7 of S.L. 2018‑2, is repealed.

SECTION 11B.1.(b)  Part 10B of Article 3 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B‑168.10C.  Adjustments to NC Prekindergarten Program Funds.

When developing the base budget, as defined by G.S. 143C‑1‑1, the Director of the Budget shall include increased funding for the NC Prekindergarten (NC Pre‑K) program by an additional nine million three hundred fifty thousand dollars ($9,350,000) for the 2019‑2020 fiscal year and by an additional eighteen million seven hundred thousand dollars ($18,700,000) for the 2020‑2021 fiscal year. An appropriation under this section is a statutory appropriation as defined in G.S. 143C‑1‑1(d)(28)."

 

SEPARATE STAR‑RATED LICENSE/BIRTH THROUGH TWO YEARS OF AGE/REPORT

SECTION 11B.2.(a)  The Department of Health and Human Services, Division of Child Development and Early Education (Division), shall develop a separate birth through two years of age, star‑rated license for child care facilities. In developing the separate, star‑rated license, the Division shall, at a minimum, consider the following:

(1)        Staff qualifications.

(2)        Staff turnover rates.

(3)        Educational outcomes.

(4)        Evaluation of certified religious‑based child care centers for rate payments and the minimum requirements for certification.

SECTION 11B.2.(b)  The Division of Child Development and Early Education shall submit a report on its recommendations regarding the separate, star‑rated license, as well as any recommendations for revising the current star‑rating system, to the Joint Legislative Oversight Committee on Health and Human Services by November 1, 2018.

 

ADDITIONAL CHILD CARE SUBSIDY MARKET RATE INCREASES/CERTAIN AGE GROUPS AND COUNTIES

SECTION 11B.3.  Section 11B.4 of S.L. 2017‑57 reads as rewritten:

"SECTION 11B.4.(a)  Beginning October 1, 2017, the Department of Health and Human Services, Division of Child Development and Early Education (Division), shall increase the child care subsidy market rates to the rates recommended by the 2015 Child Care Market Rate Study for school‑aged children in three‑, four‑, and five‑star‑rated child care centers and homes in tier one and tier two counties.

"SECTION 11B.4.(b)  Beginning October 1, 2017, the Division shall increase the child care subsidy market rates to the rates recommended by the 2015 Child Care Market Rate Study for children birth through two years of age in three‑, four‑, and five‑star‑rated child care centers and homes in tier three counties.

"SECTION 11B.4.(b1)  Beginning October 1, 2018, the Division shall increase the child care subsidy market rates to the rates recommended by the 2015 Child Care Market Rate Study for children three through five years of age in three‑, four‑, and five‑star‑rated child care centers and homes in tier three counties.

"SECTION 11B.4.(c)  For purposes of subsections (a) through (b1) of this section, tier one, tier two, and tier three counties shall have the same designations as those established by the N.C. Department of Commerce's 2015 County Tier Designations.

"SECTION 11B.4.(d)  Beginning October 1, 2018, the Division shall increase the child care subsidy market rates to the one hundredth percentile as reported in the 2015 Child Care Market Rate Study for children birth through five years of age in three‑, four‑, and five‑star‑rated child care centers and homes in tier one and tier two counties. For purposes of this subsection, tier one and tier two counties shall have the same designations as those established by the N.C. Department of Commerce's 2018 County Tier Designations."

 

REVISE SMART START INITIATIVES/REPORT DATE FOR MATCH REQUIREMENTS/ALLOW FUND‑RAISING WITH STATE FUNDS

SECTION 11B.4.  Section 11B.8 of S.L. 2017‑57 reads as rewritten:

"…

"SECTION 11B.8.(d)  Match Requirements. – The North Carolina Partnership for Children, Inc., and all local partnerships shall, in the aggregate, be required to match one hundred percent (100%) of the total amount budgeted for the program in each fiscal year of the 2017‑2019 biennium. Of the funds the North Carolina Partnership for Children, Inc., and the local partnerships are required to match, contributions of cash shall be equal to at least thirteen percent (13%) and in‑kind donated resources shall be equal to no more than six percent (6%) for a total match requirement of nineteen percent (19%) for each year of the 2017‑2019 fiscal biennium. The North Carolina Partnership for Children, Inc., may carry forward any amount in excess of the required match for a fiscal year in order to meet the match requirement of the succeeding fiscal year. Only in‑kind contributions that are quantifiable shall be applied to the in‑kind match requirement. Volunteer services may be treated as an in‑kind contribution for the purpose of the match requirement of this subsection. Volunteer services that qualify as professional services shall be valued at the fair market value of those services. All other volunteer service hours shall be valued at the statewide average wage rate as calculated from data compiled by the Division of Employment Security of the Department of Commerce in the Employment and Wages in North Carolina Annual Report for the most recent period for which data are available. Expenses, including both those paid by cash and in‑kind contributions, incurred by other participating non‑State entities contracting with the North Carolina Partnership for Children, Inc., or the local partnerships also may be considered resources available to meet the required private match. In order to qualify to meet the required private match, the expenses shall:

(1)        Be verifiable from the contractor's records.

(2)        If in‑kind, other than volunteer services, be quantifiable in accordance with generally accepted accounting principles for nonprofit organizations.

(3)        Not include expenses funded by State funds.

(4)        Be supplemental to and not supplant preexisting resources for related program activities.

(5)        Be incurred as a direct result of the Early Childhood Initiatives Program and be necessary and reasonable for the proper and efficient accomplishment of the Program's objectives.

(6)        Be otherwise allowable under federal or State law.

(7)        Be required and described in the contractual agreements approved by the North Carolina Partnership for Children, Inc., or the local partnership.

(8)        Be reported to the North Carolina Partnership for Children, Inc., or the local partnership by the contractor in the same manner as reimbursable expenses.

Failure to obtain a nineteen‑percent (19%) match by June 30 of each year of the 2017‑2019 fiscal biennium shall result in a dollar‑for‑dollar reduction in the appropriation for the Program for a subsequent fiscal year. The North Carolina Partnership for Children, Inc., shall be responsible for compiling information on the private cash and in‑kind contributions into a report that is submitted by October 1 of each year to the Joint Legislative Oversight Committee on Health and Human Services in a format that allows verification by the Department of Revenue. The same match requirements shall apply to any expansion funds appropriated by the General Assembly.

"SECTION 11B.8.(h)  Expenditure Restrictions. – The Except as provided in subsection (i) of this section, the Department of Health and Human Services and the North Carolina Partnership for Children, Inc., shall ensure that the allocation of funds for Early Childhood Education and Development Initiatives for the 2017‑2019 fiscal biennium shall be administered and distributed in the following manner:

(1)        Capital expenditures are prohibited for the 2017‑2019 fiscal biennium. For the purposes of this section, "capital expenditures" means expenditures for capital improvements as defined in G.S. 143C‑1‑1(d)(5).

(2)        Expenditures of State funds for advertising and promotional activities are prohibited for the 2017‑2019 fiscal biennium.

For the 2017‑2019 fiscal biennium, local partnerships shall not spend any State funds on marketing campaigns, advertising, or any associated materials. Local partnerships may spend any private funds the local partnerships receive on those activities.

"SECTION 11B.8.(i)  Notwithstanding subsection (h) of this section, the North Carolina Partnership for Children, Inc., and local partnerships may use up to one percent (1%) of State funds for fund‑raising activities. Beginning October 1, 2019, the North Carolina Partnership for Children, Inc., shall submit a report, in conjunction with the report required under subsection (d) of this section, to the Joint Legislative Oversight Committee on Health and Human Services on the use of State funds for fund‑raising. The report shall include the following:

(1)        The amount of funds expended on fund‑raising.

(2)        Any return on fund‑raising investments.

(3)        Any other information deemed relevant."

 

CLARIFY LANGUAGE/DOLLY PARTON'S IMAGINATION LIBRARY EARLY LITERACY INITIATIVE

SECTION 11B.5.  Section 11B.9(b) of S.L. 2017‑57 reads as rewritten:

"SECTION 11B.9.(b)  The North Carolina Partnership for Children, Inc., may use up to two percent (2%)one percent (1%) of the funds for statewide program management and up to one percent (1%) of the funds for program evaluation. Funds appropriated under this section shall not be subject to administrative costs requirements under Section 11B.8(b) of this act, nor shall these funds be subject to the child care services funding requirements under G.S. 143B‑168.15(b), child care subsidy expansion requirements under G.S. 143B‑168.15(g), or the match requirements under Section 11B.8(d) of this act."

 

SUBPART XI‑C. DIVISION OF SOCIAL SERVICES

 

FINAL REPORT/CHILD WELFARE SYSTEM CHANGES

SECTION 11C.1.  Section 11C.7 of S.L. 2017‑57 reads as rewritten:

"SECTION 11C.7.(a)  Federal Improvement Plan Implementation. – The Department of Health and Human Services, Division of Social Services, shall continue implementing the requirements of the federal Program Improvement Plan to bring our State into compliance with national standards for child welfare policy and practices. The Division shall collaborate with county departments of social services to develop a model of oversight that supports program outcomes and a county's ability to meet performance standards as outlined in the Program Improvement Plan. Oversight may include support for continuous quality improvement, staff training, and data analysis.

Of the funds appropriated to the Division in each year of the 2017‑2019 fiscal biennium for the child welfare program improvement plan, the sum of sixty thousand dollars ($60,000) recurring in each year of the 2017‑2019 fiscal biennium shall be used by the Division, in collaboration with the North Carolina State Commission on Indian Affairs within the Department of Administration, for North Carolina State‑recognized tribes to assist in (i) recruiting foster parents, (ii) increasing the number of foster homes for children who are members of a North Carolina State‑recognized tribe, and (iii) providing training for staff of county departments of social services to ensure culturally appropriate services for children who are members of a North Carolina State‑recognized tribe.

The Division shall notify the Joint Legislative Oversight Committee on Health and Human Services (Committee) and the Fiscal Research Division within 30 days of complete implementation of the Program Improvement Plan. The Division shall submit a final report to the Committee on the implementation and outcomes of the Program Improvement Plan to the Joint Legislative Oversight Committee on Health and Human Services. The report shall be submitted semiannually on February 1 and August 1 of each year, with a final report on February 1, 2019.no later than 90 days after implementation is complete.

"SECTION 11C.7.(b)  Child Welfare/NC FAST. – The Department of Health and Human Services, Division of Social Services, shall continue toward completion of the child welfare component of the North Carolina Families Accessing Services Through Technology (NC FAST) system to (i) bring the State into compliance with the Statewide Information System systematic factor of the Child and Family Services Review (CFSR) and (ii) ensure that data quality meets federal standards and adequate information is collected and available to counties to assist in tracking children and outcomes across counties.

It is the intent of the General Assembly that the child welfare component of the NC FAST system be operational by December 31, 2017. To that end, the Department of Health and Human Services, Division of Social Services, shall notify the Joint Legislative Oversight Committee on Health and Human Services (Committee) and the Fiscal Research Division within 30 days of complete implementation of the child welfare component of NC FAST. The Division of Social Services shall then submit a final report to the Committee on the development, implementation,implementation and outcomes of the child welfare component of the NC FAST system to the Joint Legislative Oversight Committee on Health and Human Services quarterly through April 1, 2019. The report shall include, at a minimum, each of the following:no later than 90 days after implementation is complete.

(1)        The current time line for development and implementation of the child welfare component to NC FAST.

(2)        Any adjustments and justifications for adjustments to the time line.

(3)        Progress on the development and implementation of the system.

(4)        Address any identified issues in developing or implementing the child welfare component to NC FAST and solutions to address those issues.

(5)        The level of county participation and involvement in each phase of the project.

(6)        Any budget and expenditure reports, including overall project budget and expenditures, and current fiscal year budget and expenditures."

 

EXPAND ECKERD KIDS AND CARING FOR CHILDREN'S ANGEL WATCH PROGRAM TO INCLUDE SIBLINGS UNDER 18 YEARS OF AGE

SECTION 11C.2.  Section 11C.14(a) of S.L. 2017‑57 reads as rewritten:

"SECTION 11C.14.(a)  The Department of Health and Human Services, Division of Social Services, shall report on the use of additional funds provided in this act for each year of the 2017‑2019 fiscal biennium to provide continued support of the Eckerd Kids and Caring for Children's Angel Watch program, a foster care program for children who are ages zero to 10 10 years, as well as the siblings of those children who are under 18 years of age, who are not in the custody of a county department of social services and whose families are temporarily unable to care for them due to a crisis. The report shall, at a minimum, include each of the following:

(1)        The number of families and children served by the program, including the counties in which services are provided.

(2)        The number of children who enter foster care within six months after their family participates in the program.

(3)        A comparison of children with similar needs that do not participate in the program and the number of those children who enter into foster care.

(4)        Any other matters the Division deems relevant."

 

CHILD SUPPORT FEE CHANGE AS REQUIRED UNDER FEDERAL LAW

SECTION 11C.3.  G.S. 110‑130.1(a) reads as rewritten:

"(a)      All child support collection and paternity determination services provided under this Article to recipients of public assistance shall be made available to any individual not receiving public assistance in accordance with federal law and as contractually authorized by the nonrecipient, upon proper application and payment of a nonrefundable application fee of twenty‑five dollars ($25.00). The fee shall be reduced to ten dollars ($10.00) if the individual applying for the services is indigent. An indigent individual is an individual whose gross income does not exceed one hundred percent (100%) of the federal poverty guidelines issued each year in the Federal Register by the U.S. Department of Health and Human Services. For the purposes of this subsection, the term "gross income" has the same meaning as defined in G.S. 105‑134.1.

In the case of an individual who has never received assistance under a State program funded pursuant to Title IV‑A of the Social Security Act and for whom the State has collected and disbursed to the family in a federal fiscal year at least five hundred fifty dollars ($500.00)($550.00) of support, the State shall impose an annual fee of twenty‑fivethirty‑five dollars ($25.00)($35.00) for each case in which services are furnished. The child support agency shall retain the fee from support collected on behalf of the individual. However, the child support agency shall not retain the fee from the first five hundred fifty dollars ($500.00)($550.00) collected. The child support agency shall use the fee to support the ongoing operation of the program."

 

CRIMINAL RECORD CHECKS OF APPLICANTS AND CURRENT EMPLOYEES WHO ACCESS FEDERAL TAX INFORMATION UNDER FEDERAL LAW

SECTION 11C.4.  Subpart D of Part 4 of Article 13 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B‑935.1.  Criminal record checks of applicants and current employees who access federal tax information.

(a)        The Department of Public Safety may, upon request, provide to the Division of Social Services or Division of Medical Assistance within the Department of Health and Human Services or a county agency the criminal history from the State and National Repositories of Criminal Histories of the following individuals if the individual is permitted, or will be permitted, to access federal tax information:

(1)        An applicant for employment.

(2)        A current employee.

(3)        A contractual employee or applicant.

(4)        An employee of a contractor.

(b)        Along with the request, the requesting agency shall provide the following to the Department of Public Safety:

(1)        The fingerprints of the person who is the subject of the record check.

(2)        A form signed by the person who is the subject of the record check consenting to:

a.         The criminal record check.

b.         The use of fingerprints.

c.         Any other identifying information required by the State and National Repositories.

d.         Any additional information required by the Department of Public Safety.

(c)        The fingerprints shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check.

(d)       The requesting agency shall keep all information obtained pursuant to this section confidential.

(e)        The Department of Public Safety may charge a fee to offset the cost incurred by it to conduct a criminal record check under this section. The fee shall not exceed the actual cost of locating, editing, researching, and retrieving the information."

 

SUBPART XI‑D. DIVISION OF AGING AND ADULT SERVICES

 

PLAN FOR ALLOWING THE EASTERN BAND OF CHEROKEE INDIANS TO ASSUME RESPONSIBILITY FOR ADMINISTERING THE HOME AND COMMUNITY CARE BLOCK GRANT

SECTION 11D.1.  By February 1, 2019, the Department of Health and Human Services, Division of Aging and Adult Services, in consultation with the Eastern Band of Cherokee Indians (EBCI), shall develop and submit to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division a plan to enable the EBCI to assume responsibility for administering the Home and Community Care Block Grant (HCCBG) on behalf of the Tribe. The plan must include at least all of the following information:

(1)        The amount of funding received by the EBCI from the Older Americans Act and the source and amount of any other funding available to the EBCI to pay for services provided under the HCCBG.

(2)        The number of individuals who would be eligible to receive HCCBG services from the EBCI upon assumption by the EBCI of this responsibility.

(3)        An explanation of how the Department will avoid double counting individuals eligible for HCCBG services administered by the EBCI and by another county within the area agency on aging.

(4)        Whether eligibility for services would be determined by Tribal enrollment, geographic location, or some other method and an explanation of the method for determining eligibility for services.

(5)        Any federal laws, rules, or other guidance that should be taken into consideration in order to allow the EBCI to assume this responsibility.

(6)        Any State laws, rules, or other guidance that should be taken into consideration or amended in order to allow the EBCI to assume this responsibility.

(7)        Any federal waiver application or State Plan amendment the Department would be required to file in order to allow the EBCI to assume this responsibility.

(8)        An explanation of any information technology issues that should be addressed and any recommendations for how to address them.

(9)        Identification of all recurring and nonrecurring implementation costs.

(10)      A proposed time line for the EBCI to assume this responsibility.

(11)      Any other information the Secretary of Health and Human Services deems relevant to the EBCI successfully assuming this responsibility.

 

SUBPART XI‑E. DIVISION OF PUBLIC HEALTH

 

FEE INCREASE TO OFFSET COST OF NEWBORN SCREENING PROGRAM

SECTION 11E.1.(a)  G.S. 130A‑125 reads as rewritten:

"§ 130A‑125.  Screening of newborns for metabolic and other hereditary and congenital disorders.

(a)        The Department shall establish and administer a Newborn Screening Program. The program shall include, but shall not be limited to:

(1)        Development and distribution of educational materials regarding the availability and benefits of newborn screening.

(2)        Provision of laboratory testing.

(3)        Development of follow‑up protocols to assure early treatment for identified children, and the provision of genetic counseling and support services for the families of identified children.

(4)        Provision of necessary dietary treatment products or medications for identified children as medically indicated and when not otherwise available.

(5)        For each newborn, provision of physiological screening in each ear for the presence of permanent hearing loss.

(6)        For each newborn, provision of pulse oximetry screening to detect congenital heart defects.

(b)        The Commission shall adopt rules necessary to implement the Newborn Screening Program. The rules shall include, but shall not be limited to, the conditions for which screening shall be required, provided that screening shall not be is required. The Commission shall amend the rules as necessary to ensure that each condition listed on the Recommended Uniform Screening Panel developed by the Secretary of the United States Department of Health and Human Services and the Advisory Committee on Heritable Disorders of Newborns and Children (the RUSP) is included in the Newborn Screening Program, except that the Commission is exempt from rule making with respect to adding screening tests for Pompe disease, Mucopolysaccharidosis Type I (MPS I), and X‑Linked Adrenoleukodystrophy (X‑ALD). Screening is not required when the parents or the guardian of the infant object to such screening. If the parents or guardian object to the screening, the objection shall be presented in writing to the physician or other person responsible for administering the test, who shall place the written objection in the infant's medical record.

(b1)      The Commission shall adopt temporary and permanent rules to include newborn hearing screening and pulse oximetry screening in the Newborn Screening Program established under this section.

(b2)      The Commission's rules for pulse oximetry screening shall address at least all of the following:

(1)        Follow‑up protocols to ensure early treatment for newborn infants diagnosed with a congenital heart defect, including by means of telemedicine. As used in this subsection, "telemedicine" is the use of audio and video between places of lesser and greater medical capability or expertise to provide and support health care when distance separates participants who are in different geographical locations.

(2)        A system for tracking both the process and outcomes of newborn screening utilizing pulse oximetry, with linkage to the Birth Defects Monitoring Program established pursuant to G.S. 130A‑131.16.

(c)        A fee of forty‑four dollars ($44.00)one hundred twenty‑eight dollars ($128.00) applies to a laboratory test performed by the State Laboratory of Public Health pursuant to this section. The fee for a laboratory test is a departmental receipt of the Department and shall be used to offset the cost of the Newborn Screening Program. The Commission may by rule, and in consultation with the Secretary, increase this fee by no more than the amount necessary to offset the cost of incorporating a condition listed on the RUSP into the Newborn Screening Program. The Commission shall by rule decrease this fee when it determines, in consultation with the Secretary, that current and anticipated fee receipts will exceed current and anticipated recurring operating costs of the Newborn Screening Program by more than ten percent (10%).

(d)       The Newborn Screening Equipment Replacement and Acquisition Fund (Fund) is established as a nonreverting fund within the Department. Thirty‑one dollars ($31.00) of each fee collected pursuant to subsection (c) of this section shall be credited to this Fund and applied to the Newborn Screening Program to be used as directed in this subsection. The Department shall not use monies in this Fund for any purpose other than to purchase or replace laboratory instruments, equipment, and information technology systems used in the Newborn Screening Program. The Department shall notify and consult with the Joint Legislative Commission on Governmental Operations whenever the balance in the Fund exceeds the following threshold: the sum of (i) the actual cost of new equipment necessary to incorporate conditions listed on the RUSP into the Newborn Screening Program and (ii) one hundred percent (100%) of the replacement value of existing equipment used in the Newborn Screening Program. Any monies in the Fund in excess of this threshold shall be available for expenditure only upon an act of appropriation by the General Assembly.

(e)        Annually on March 1, the Department shall report to the House Appropriations Committee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division on the Newborn Screening Program. The report shall include all of the following information for the preceding fiscal year:

(1)        A description of the services funded by the Newborn Screening Program, including a description of the Department's activities with respect to each of the services listed in subsection (a) of this section.

(2)        A detailed budget and list of expenditures for the Newborn Screening Program, including all positions funded.

(3)        Fees and other receipts collected for the Newborn Screening Program.

(4)        Projected fees and other receipts for the Newborn Screening Program for the current and upcoming fiscal year.

(5)        Any condition the Department anticipates will be listed on the RUSP within the current or upcoming fiscal year and a description of the following:

a.         Any laboratory instruments or equipment the Department will need to purchase in order to perform screening for that condition.

b.         Any additional positions the Department will need to establish in order to perform screening for that condition.

(6)        The balance in the Newborn Screening Equipment Replacement and Acquisition Fund as of the preceding June 30.

(7)        Amounts credited to the Fund.

(8)        Amounts expended from the Fund and the purposes of the expenditures.

(9)        Proposed expenditures of the monies in the Fund for the current and upcoming fiscal year.

(10)      Any other information the Department deems relevant to maintaining the Newborn Screening Program as a fee‑supported program."

SECTION 11E.1.(b)  G.S. 150B‑1(d) is amended by adding a new subdivision to read:

"(29)    The Commission for Public Health with respect to adding to the Newborn Screening Program established under G.S. 130A‑125 screening tests for Pompe disease, Mucopolysaccharidosis Type I (MPS I), and X‑Linked Adrenoleukodystrophy (X‑ALD)."

SECTION 11E.1.(c)  The Department shall submit the first report due under G.S. 130A‑125(e) by March 1, 2019. The first report shall include a progress report on the implementation of G.S. 130A‑125, as amended by this section, including any regulatory or operational challenges to full implementation and any recommended legislative changes.

SECTION 11E.1.(d)  This section becomes effective July 1, 2018, and the fee authorized by G.S. 130A‑125(c) applies to laboratory tests performed by the North Carolina State Laboratory of Public Health as part of the Newborn Screening Program on or after that date.

 

STUDY CONCERNING VITAL RECORDS FEES

SECTION 11E.2.  By December 1, 2018, the Department of Health and Human Services, Division of Public Health, shall examine and report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division on whether the revenue generated from the fees charged for vital records is sufficient to cover the operational costs of the vital records system, including costs for equipment and information technology systems.

 

FUNDS FOR PREGNANCY CARE INITIATIVES

SECTION 11E.3.  Section 11E.13 of S.L. 2017‑57 reads as rewritten:

"SECTION 11E.13.(a)  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, the sum of one million three hundred thousand dollars ($1,300,000) in nonrecurring funds for the 2017‑2018 fiscal year and the sum of one million three hundred thousand dollars ($1,300,000)one million dollars ($1,000,000) in nonrecurring funds for the 2018‑2019 fiscal year shall be allocated to the Carolina Pregnancy Care Fellowship, a nonprofit organization, to be used as follows:

(1)        $800,000 in nonrecurring funds for each fiscal year of the 2017‑2019 fiscal biennium shall be used to provide grants to purchase durable medical equipment for clinics that apply to the Carolina Pregnancy Care Fellowship for such equipment.

(2)        $170,000 in nonrecurring funds for each fiscal year of the 2017‑2019 fiscal biennium may be used to provide grants for training on the use of durable medical equipment to clinics that apply to the Carolina Pregnancy Care Fellowship for such training.

(3)        $30,000 in nonrecurring funds for each fiscal year of the 2017‑2019 fiscal biennium may be used by Carolina Pregnancy Care Fellowship for administrative purposes related to the grants authorized by subdivisions (1) and (2) of this subsection.

(4)        $300,000 in nonrecurring funds for each fiscal year of the 2017‑2019 fiscal bienniumthe 2017‑2018 fiscal year shall be transferred to the Human Coalition, a nonprofit organization, to develop and implement a two‑year continuum of care pilot program as provided in subsection (b) of this section.

"SECTION 11E.13.(b)  Funds allocated to the Human Coalition shall be used to develop and implement a two‑year pilot program at its Raleigh clinic to provide a continuum of care and support to assist women experiencing crisis pregnancies to continue their pregnancies to full term. These funds shall be used for nonsectarian purposes only.

"SECTION 11E.13.(c)  The pilot program authorized by subsection (b) of this section shall consist of at least all of the following components:

(1)        The use of care coordinators to perform the following functions:

a.         Assess the immediate challenges causing a program participant to seek abortion and eliminate these challenges by assisting the program participant in connecting to appropriate resources. The care coordinator shall personally assist a program participant in connecting to appropriate resources, when appropriate.

b.         Introduce each program participant to a trained mentor who will continue to guide the program participant toward positive lifestyle changes.

(2)        The use of licensed nursing staff in the Human Coalition's Raleigh clinic to provide medical support to program participants.

(3)        Close collaboration between care coordinators and licensed nursing staff during initial counseling sessions in order to accomplish the following:

a.         Appropriately introduce continuum of care services available through the pilot program.

b.         Create individual care plans for program participants and their families to help build a stable family life for the duration of the pregnancy. Care plans should identify and address any further challenges identified by care coordinators with encouragement and additional resources.

"SECTION 11E.13.(d)  By November 1, 2017, and periodically thereafter, the Human Coalition shall report to the Department on the start‑up and operations of the pilot program authorized by subsection (b) of this section. By April 1, 2018, the Department shall report to the Joint Legislative Oversight Committee on Health and Human Resources and the Fiscal Research Division on the status of the pilot program.

"SECTION 11E.13.(e)  By April 1, 2019, the Department shall submit a final report on the pilot program authorized by subsection (b) of this section to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division. At a minimum, the Department's final report shall include all of the following:

(1)        An estimate of the cost to expand the program incrementally and statewide.

(2)        An estimate of any potential savings of State funds associated with expansion of the program.

(3)        If expansion of the program is recommended, a time line for expanding the program.

"SECTION 11E.13.(f)  Unless otherwise extended by law, the pilot program authorized by subsection (b) of this section expires June 30, 2019."

 

HUMAN COALITION PILOT PROGRAM

SECTION 11E.4.  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Public Health, the sum of three hundred thousand dollars ($300,000) in nonrecurring funds for the 2018‑2019 fiscal year shall be allocated to the Human Coalition, a nonprofit organization, to continue the two‑year pilot program authorized by Section 11E.13(b) of S.L. 2017‑57.

 

EVERY WEEK COUNTS DEMONSTRATION PROJECT

SECTION 11E.5.  Section 11E.12 of S.L. 2017‑57 reads as rewritten:

"SECTION 11E.12.(a)  The General Assembly finds that preterm birth is the major driver of infant mortality in the United States and the leading cause of long‑term neurological disabilities in children. It further finds that the counties in North Carolina with the highest infant mortality rates are multiply burdened by high rates of preterm birth and high rates of poverty and also tend to be counties that are also disproportionately composed of racial minorities. It is the intent of the General Assembly to reduce the incidence of preterm birth and infant mortality by funding and supporting for a period of at least three years a demonstration project in two counties of Perinatal Care Region V of North Carolina to study (i) the extent to which a home‑based prenatal care model can reduce the rate of preterm birth among multiparous women and (ii) whether multiparous women without a prior preterm birth, but with multiple risk factors for preterm birth in the current pregnancy, may benefit from 17 Alpha‑Hydroxyprogesterone Caproate (17P) therapy.

"SECTION 11E.12.(b)  To that end, funds in the amount of two million two hundred thousand dollars ($2,200,000)three million dollars ($3,000,000) in nonrecurring funds from the federal Maternal and Child Health Block Grant funds referenced in Section 11L.1 of this act shall be allocated to the Department of Health and Human Services, Division of Public Health, for the 2017‑2018 fiscal year and for the 2018‑2019 fiscal year year. The Department of Health and Human Services, Division of Public Health, shall allocate these funds to the University of North Carolina at Pembroke to initiate the three‑year demonstration project authorized by this section. Upon initiation of the pilot program, the University of North Carolina at Pembroke shall secure an additional sum of three million dollars ($3,000,000) from the University of North Carolina at Chapel Hill to continue this demonstration project through the third year. Up to two million dollars ($2,000,000) of the three million dollars ($3,000,000) to be secured by the University of North Carolina at Pembroke may be raised by the University of North Carolina School of Medicine from non‑State, private sources. The University of North Carolina at Pembroke shall use all of these funds to conduct conduct, in collaboration with the University of North Carolina School of Medicine, a three‑year demonstration project in Robeson and Columbus counties to do the following:

(1)        Investigate the effectiveness of in‑home prenatal care for the prevention of preterm birth among multiparous women of low income.

(2)        Conduct a nested randomized controlled trial of 17P for preterm birth prevention among women without a prior preterm birth, but with a significant constellation of risk factors that increases their likelihood of having a preterm birth in the current pregnancy.

Multiparous women at or below one hundred eighty‑five percent (185%) of the federal poverty level and primaparous women at or below two hundred percent (200%) of the federal poverty level, who are in the early stages of pregnancy, ideally prior to 17 weeks gestation, are eligible to participate in the demonstration project regardless of age or medical history. Faculty at the University of North Carolina at Chapel Hill Pembroke and the University of North Carolina School of Medicine shall supervise the demonstration project.

"SECTION 11E.12.(c)  The demonstration project shall consist of at least all of the following components:

(1)        An Every Week Counts enrollment visit that includes an early ultrasound assessment and a complete medical examination to ascertain baseline health characteristics, presence of reproductive tract infections, and other risk factors for preterm birth including reproductive history and other relevant factors. The enrollment visit shall also include a detailed interview to ascertain the social and psychological state of the program participant.

(2)        Women enrolled in Every Week Counts shall receive home visits during pregnancy that combine a home‑based prenatal care model with social interventions focused on addressing barriers to completing educational goals, obtaining employment, identifying reliable and high‑quality child care, and addressing the health and safety needs of the growing family.

(3)        Women enrolled in Every Week Counts shall receive home visits during the first two years of their child's life. Program participants and their infants will be followed until the child's second birthday. In these monthly visits, the child's health, growth, and development will be tracked; the mother will be provided with information on nutritional, health, and developmental needs; and children in need of Early Intervention Services will be identified to ensure school readiness. Primary health care in addition to targeted education in early childhood development and health needs will be provided to participants in a home setting. In order to track the development of these children, standardized tests will be administered periodically to assess cognitive, psychomotor, and behavioral development.

(4)        There shall be a randomized clinical trial of 17P within Every Week Counts in a population of women enriched for preterm birth susceptibility. Eligible women that choose to enroll in this intervention trial will be randomized to a weekly 17P injection after 16‑20 weeks' gestation or a sham injection. Women who choose to participate in the 17P intervention trial will be co‑enrolled in Every Week Counts and will receive all the same home‑based prenatal care and child development services, but will receive weekly visits from the Nurse Practitioner after 16‑20 weeks' gestation in order to deliver the 17P intramuscular injection.

"SECTION 11E.12.(d)  Not later than six months after the conclusion of the demonstration project, the University of North Carolina at Chapel Hill shall submit a final report on the demonstration project to the Department that addresses at least all of the following:

(1)        For the Every Week Counts part of the demonstration project:

a.         Percent preterm and low birth weight relative to overall county statistics in current and prior years using vital statistics data, within categories of race/ethnicity and parity.

b.         Percent initiating breastfeeding at delivery and the average duration of breastfeeding.

c.         Percent reporting active smoking at the time of delivery.

d.         Uptake of contraception postpartum.

e.         Average length of interpregnancy interval.

f.          Percent of children meeting developmental milestones in the first year.

g.         Number of emergency room visits related to child health in the first two years.

(2)        For the 17P Intervention Trial, relative risk of preterm birth in treated versus untreated program participants.

"SECTION 11E.12.(e)  Not later than three months after the Department receives the report due under subsection (d) of this section, the Department shall submit a final report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division evaluating the demonstration project. At a minimum, the report shall include all of the following:

(1)        An estimate of the cost to expand the program incrementally and statewide.

(2)        An estimate of any potential savings of State funds associated with expansion of the program.

(3)        If expansion of the program is recommended, a time line for expanding the program.

"SECTION 11E.12.(f)  The demonstration project authorized under this section shall terminate upon the submission of the report due under subsection (d) of this section by the University of North Carolina at Chapel Hill."

 

SUBPART XI‑F. DIVISION OF MH/DD/SAS AND STATE OPERATED HEALTHCARE FACILITIES

 

SINGLE‑STREAM FUNDING FOR MH/DD/SAS COMMUNITY SERVICES

SECTION 11F.1.  Section 11F.2(b) of S.L. 2017‑57, as amended by Section 4 of S.L. 2017‑206, reads as rewritten:

"SECTION 11F.2.(b)  The DMH/DD/SAS is directed to reduce its allocation for single‑stream funding by thirty‑one million four hundred eighty‑seven thousand three hundred sixty‑six dollars ($31,487,366) in recurring funds and by fifty‑five million four hundred fifty‑four thousand nine hundred twenty‑three dollars ($55,454,923) in nonrecurring funds for the 2017‑2018 fiscal year year; and by thirty‑six million two thousand eight hundred fifty‑four thirty‑six million four hundred forty thousand eight hundred ninety‑five dollars ($36,002,854) ($36,440,895) in recurring funds and by fifty‑four million six hundred five thousand eight hundred twenty‑three seventy‑one million one hundred eighty‑nine thousand four hundred fifty‑eight dollars ($54,605,823) ($71,189,458) in nonrecurring funds for the 2018‑2019 fiscal year.

The DMH/DD/SAS shall allocate these recurring and nonrecurring reductions for single‑stream funding among the LME/MCOs as follows:

 

                                                                              FY 2017‑2018                        FY 2018‑2019

Alliance Behavioral Healthcare

      Recurring                                                       ($7,468,941)                                  ($10,226,331)($7,342,029)

      Nonrecurring                                                 ($8,478,129)                                    ($9,357,813)($17,799,167)

 

Cardinal Innovations Healthcare

      Recurring                                                       ($7,413,799)            ($10,120,076)($16,590,617)

      Nonrecurring                                               ($14,500,322)            ($16,075,545)($27,428,788)

 

Eastpointe

      Recurring                                                       ($1,372,311)              ($2,116,105)($2,495,640)

      Nonrecurring                                                 ($5,626,836)              ($5,721,407)($3,502,405)

 

Partners Behavioral Health Management

      Recurring                                                       ($2,739,719)              ($2,912,599)($3,417,666)

      Nonrecurring                                                 ($6,686,675)              ($6,356,282)($6,646,271)

 

Sandhills Center

      Recurring                                                       ($7,424,094)              ($8,607,466)($5,992,312)

      Nonrecurring                                                 ($8,790,246)             ($8,431,511)($12,012,827)

 

Trillium Health Resources

      Recurring                                                       ($3,338,878)                                         ($33,869)($0)

      Nonrecurring                                                 ($5,652,353)                                    ($3,126,486)($0)

 

Vaya Health

      Recurring                                                       ($1,729,624)                 ($1,986,408)($602,631)

      Nonrecurring                                                 ($5,720,363)                   ($5,536,779)($3,800,000)

 

TOTALS

      Recurring                                                   ($31,487,366)                                  ($36,002,854)($36,440,895)

      Nonrecurring                                             ($55,454,923)                                  ($54,605,823)($71,189,458)

 

By March 1, 2018, the Secretary of Health and Human Services shall submit to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division a proposal for any adjustments to the specified recurring reductions among the LME/MCOs for future fiscal years. The proposal must include a detailed explanation supporting any proposed changes.Upon completing a comparison of the cash balance and solvency range of each LME/MCO on December 1, 2018, as required by G.S. 122C‑125.2(b), the Secretary of Health and Human Services may adjust the specified recurring and nonrecurring reductions among the LME/MCOs; provided, however, that the Secretary shall submit a detailed explanation for any such adjustment along with supporting documentation to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division within 10 business days after making the adjustment.

During each year of the 2017‑2019 fiscal biennium, each LME/MCO shall offer at least the same level of single‑stream service utilization as during the 2014‑2015 fiscal year across the LME/MCO's catchment area. This requirement shall not be construed to require LME/MCOs to authorize or maintain the same level of services for any specific individual whose services were paid for with single‑stream funding. Further, this requirement shall not be construed to create a private right of action for any person or entity against the State of North Carolina or the Department of Health and Human Services or any of its divisions, agents, or contractors and shall not be used as authority in any contested case brought pursuant to Chapter 108C or 108D of the General Statutes."

 

USE OF DOROTHEA DIX HOSPITAL PROPERTY FUNDS TO PURCHASE ADDITIONAL BEHAVIORAL HEALTH BEDS

SECTION 11F.2.  Section 11F.5 of S.L. 2017‑57 reads as rewritten:

"…

"SECTION 11F.5.(e)  Report on Use of Funds to Purchase Additional Beds. – Beginning November 1, 2018, the Department of Health and Human Services shall annually report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division on the number and location of additional licensed inpatient behavioral health beds brought into operation with funds allocated under subsection (a) of this section.section and, of this number, and pursuant to subsection (d) of this section, the number of beds or bed days reserved for and purchased by (i) the Department under the State‑administered, three‑way contract and (ii) the LME/MCOs for individuals who are indigent or Medicaid recipients. By December 1, 2020, the Department shall submit a report that includes a proposal for funding the recurring operating costs of these additional beds from a source or sources other than the Dorothea Dix Hospital Property Funds, including the identification of potential new funding sources.

"SECTION 11F.5.(g)  Unspent Funds for 2016‑2017 Fiscal Year. – Any funds allocated to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, from the Dorothea Dix Hospital Property Fund established under G.S. 143C‑9‑2(b1) pursuant to Section 12F.4 of S.L. 2016‑94 for the 2016‑2017 fiscal year that are not expended or encumbered as of June 30, 2017,June 30, 2019 shall remain in the Dorothea Dix Hospital Property Fund.

…."

 

USE OF DOROTHEA DIX HOSPITAL PROPERTY FUNDS TO IMPROVE SCHOOL SAFETY

SECTION 11F.3.  It is the intent of the General Assembly to improve mental health services to make public schools safer. To that end and notwithstanding any provision of law to the contrary, of the funds appropriated from the Dorothea Dix Hospital Property Fund established under G.S. 143C‑9‑2(b1) to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2018‑2019 fiscal year, the sum of ten million dollars ($10,000,000) in nonrecurring funds shall be transferred to the Department of Public Instruction to implement the mental health‑related school safety initiative described in Section 7.27(i) of this act.

 

FUNDS FOR TROSA TO EXPAND SUBSTANCE USE DISORDER TREATMENT & RECOVERY SERVICES

SECTION 11F.4.(a)  Of the funds appropriated to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2018‑2019 fiscal year, the Department shall allocate six million dollars ($6,000,000) in nonrecurring funds as a grant‑in‑aid to Triangle Residential Options for Substance Abusers (TROSA), Inc., a nonprofit organization, for the construction of a new satellite TROSA facility in the Triad area of the State for the provision of comprehensive, long‑term residential substance use disorder recovery services. TROSA shall not use these funds for any purpose other than the purpose stated in this subsection.

SECTION 11F.4.(b)  By April 1, 2019, TROSA shall submit a report on the status of the construction project described in subsection (a) of this section. The report must include a breakdown of all expenditures from the funds allocated pursuant to subsection (a) of this section and a projected completion date for the construction project. By May 1, 2019, the Department shall submit this information in a report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division.

 

FUNDS FOR VAYA HEALTH TO EXPAND FACILITY‑BASED CRISIS SERVICES

SECTION 11F.5.(a)  Of the funds appropriated to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2018‑2019 fiscal year, the Department shall allocate one million four hundred thousand dollars ($1,400,000) in nonrecurring funds to Vaya Health (Vaya) as a grant‑in‑aid for the construction of a facility‑based crisis center in Wilkes County. Vaya shall not use these funds for any purpose other than the purpose stated in this subsection.

SECTION 11F.5.(b)  By April 1, 2019, Vaya shall submit a report on the status of the construction project described in subsection (a) of this section. The report must include a breakdown of all expenditures from the funds allocated pursuant to subsection (a) of this section and a projected completion date for the project. By May 1, 2019, the Department shall submit this information in a report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division.

 

COST ANALYSIS FOR EXPANSION OF THE WRIGHT SCHOOL

SECTION 11F.6.  By December 1, 2018, the Department of Health and Human Services shall develop and submit to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division a detailed cost analysis for expanding the Wright School to two additional locations within the State to (i) provide statewide access to best practice, cost‑effective, residential mental health treatment to children, ages six to 13, with serious emotional and behavioral disorders and (ii) support their families and communities in building the capacity to meet their children's special needs at home, at school, and within their local communities. The cost analysis must include, at a minimum, all of the following:

(1)        A detailed cost estimate for planning, site development, and construction of one new State‑operated facility located west of Interstate 77 and one new State‑operated facility located east of Interstate 95.

(2)        Projected operating costs for each of the new facilities referenced in subdivision (1) of this section over a three‑year period. The projection for each facility must include estimated occupancy, estimated revenues by payer source, and detailed estimated operating expenses.

(3)        A projected analysis of how expansion of the Wright School to the new facilities referenced in subdivision (1) of this section will impact spending by the Medicaid program over a three‑year period, including expenditures for emergency department utilization and inpatient hospitalizations to address behavioral health crises among the children to be served by these facilities and any associated cost savings to the State over the three‑year period.

 

FUNDS FOR EVIDENCE‑BASED SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS WITH SERIOUS MENTAL ILLNESS, INTELLECTUAL DISABILITIES, OR DEVELOPMENTAL DISABILITIES

SECTION 11F.7.  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 one hundred twenty‑five thousand dollars ($125,000) in recurring funds for the 2018‑2019 fiscal year shall be allocated as a grant to the North Carolina Association of People Supporting Employment First (NC APSE) to develop and implement training programs for the Department, including online training modules, on the provision of evidence‑based supported employment services for individuals in targeted populations, in order to assist these individuals with preparation for, identification of, and maintenance of integrated, paid, competitive employment. The Department shall make these training programs available throughout the State to (i) employers that have hired or are willing to hire individuals in targeted populations, (ii) service providers of local management entities/managed care organizations, and (iii) any other entity the Department determines will benefit from receiving this training in order to achieve improved employment outcomes for individuals in targeted populations. As used in this section, "individuals in targeted populations" means individuals with serious mental illness who are in or at risk of entry to an adult care home and individuals with intellectual disabilities, developmental disabilities, or both.

 

YOUTH TOBACCO ENFORCEMENT Funding

SECTION 11F.8.  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 the 2018‑2019 fiscal year, the sum of three hundred thousand dollars ($300,000) in recurring funds shall be transferred to the Alcohol Law Enforcement Branch. The Alcohol Law Enforcement Branch shall allocate these funds for the performance of statewide compliance checks to enforce the State's youth tobacco access law (G.S. 14‑313).

 

FUNDS FOR NEW BROUGHTON HOSPITAL

SECTION 11F.9.(a)  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 the new Broughton Hospital for the 2018‑2019 fiscal year, the sum of up to five million dollars ($5,000,000) in recurring funds shall not be used for any other purposes except the following:

(1)        The creation of no more than 169 full‑time equivalent positions assigned to the new Broughton Hospital.

(2)        Costs directly related to planning for and transitioning patients from the old Broughton Hospital to the new Broughton Hospital.

(3)        Operational costs for new beds at the new Broughton Hospital.

SECTION 11F.9.(b)  The total annualized cost of subdivisions (1) through (3) of subsection (a) of this section shall not exceed fifteen million one hundred thousand dollars ($15,100,000) in recurring funds.

 

ESTABLISH RANGES FOR LME/MCO SOLVENCY

SECTION 11F.10.(a)  The General Assembly finds that a viable State‑funded behavioral health system is critical to accomplishing the State's goals for behavioral health, meeting the needs of the covered populations, and achieving the desired outcomes detailed in the Department of Health and Human Services' Strategic Plan for Improvement of Behavioral Health Services. Integral to assessing the State's behavioral health system is the development of a method to determine the viability of local management entities/managed care organizations (LME/MCOs) and the establishment of short‑term and intermediate term solvency standards that provide a uniform analysis of each LME/MCO's financial position, provide a mechanism for ongoing assessment of each LME/MCO's viability, inform the State's funding decisions, and enhance short‑term and intermediate term planning by the LME/MCOs.

SECTION 11F.10.(b)  Part 2 of Article 4 of Chapter 122C of the General Statutes is amended by adding a new section to read:

"§ 122C‑125.2.  LME/MCO solvency ranges; formula; corrective action plan.

(a)        Beginning on September 1, 2018, the Department shall calculate on a quarterly basis a solvency range for each LME/MCO as a sum of the following figures to produce upper and lower range values:

(1)        Incurred but not reported claims figure. – The incurred but not reported claims figure shall be calculated by multiplying an LME/MCO's service spending for the preceding 12 months by six and eight‑tenths percent (6.8%). If an LME/MCO experiences extenuating circumstances supported by actuarial documentation, then the Department may utilize a percentage other than six and eight‑tenths (6.8%) for that LME/MCO.

(2)        Net operating liabilities figure. – The net operating liabilities figure shall be calculated by subtracting noncash current accounts receivable from the nonclaims current liabilities, as reported on the LME/MCO's most recent balance sheet. If the noncash accounts receivable are greater than the nonclaim liabilities, then the value for the net operating liabilities figure is zero.

(3)        Catastrophic or extraordinary events range. – The catastrophic or extraordinary events range shall be calculated as the range between a lower figure and an upper figure. The lower figure shall be calculated by multiplying an LME/MCO's service expenditures from the preceding 12 months by four and fifteen‑hundredths percent (4.15%). The upper figure shall be calculated by multiplying an LME/MCO's service expenditures from the preceding 12 months by eight and three‑tenths percent (8.3%).

(4)        Required intergovernmental transfers figure. – The required intergovernmental transfers figure is the amount of funds needed by an LME/MCO to make any intergovernmental transfers required by law over the subsequent 24 months.

(5)        Projected operating loss figure. – The projected operating loss figure is the projected net loss for an LME/MCO over the subsequent 24 months. In projecting the net loss for an LME/MCO, the Department shall use the net loss of the LME/MCO in the preceding 12 months adjusted for any changes in single‑stream funding, intergovernmental transfers, or other factors known to the Department that will impact the LME/MCO's net loss over the subsequent 24 months. If a net profit is projected for an LME/MCO, then this figure is zero.

(6)        Reinvestment plan figure. – The reinvestment plan figure is the amount required for all qualifying expenditures contained in an LME/MCO's reinvestment plans over the subsequent 36 months. To qualify as an expenditure under this subdivision, the expenditure must be related to one of the following:

a.         An initiative that supports specific goals or health status outcomes of the State in relation to the State's behavioral health needs.

b.         An initiative that meets a State behavioral health need, as defined in law or by the Department.

c.         Funding for infrastructure that supports the effective and efficient operation of the LME/MCO.

d.         Funding for a facility within the LME/MCO catchment area that is necessary to meet to the needs of the population served by the LME/MCO.

e.         New or expanded initiatives and programmatic improvements to the State behavioral health system.

f.          Working capital to be utilized to fund changes in rates, operations, or programs.

(b)        Upon calculation of the solvency range for each LME/MCO required by subsection (a) of this section, the Department shall compare the cash balance of each LME/MCO to its solvency range. For purposes of this subsection, the cash balance shall consist of the total of the LME/MCO's cash and investment balances, including its Medicaid Risk Reserve, as reported on the LME/MCO's most recent balance sheet.

Upon comparison of an LME/MCO's cash balance to its solvency range, the Department shall take one of the following actions:

(1)        If an LME/MCO's cash balance is five percent (5%) or more below the lower solvency range figure or five percent (5%) or more above the upper solvency range figure, then the Department shall notify the LME/MCO and the Fiscal Research Division of the General Assembly of the comparison results. Within 30 days from providing notice to the LME/MCO, the Department shall develop, in collaboration with the LME/MCO, a corrective action plan for the LME/MCO. The corrective action plan must include specific actions, which may include changes to the LME/MCO's reinvestment plan, utilization management, and capitation or provider rates, to bring the LME/MCO's cash balance within the solvency range, as well as a time line for implementation of these actions.

(2)        If an LME/MCO's cash balance is neither five percent (5%) or more below the lower solvency range figure nor five percent (5%) or more above the upper solvency range figure, then the Department shall notify the LME/MCO and the Fiscal Research Division of the General Assembly of the LME/MCO's solvency range for the quarter and the Department's comparison of the LME/MCO's cash balance to this solvency range. No further action shall be required.

(c)        Beginning on October 15, 2018, the Department shall submit a quarterly report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division detailing the solvency ranges and comparisons required under subsection (b) of this section for each LME/MCO. The Department shall include in its report a copy of any new corrective action plans developed as a result of those comparisons, as well as any status updates on previously reported corrective action plans.

(d)       For any calculation required by this section that is based upon the preceding 12 months, the Department is authorized to make adjustments to that calculation that take into account any changes in an LME/MCO's catchment area that occurred during that 12‑month period."

SECTION 11F.10.(c)  At the next renewal or amendment of a contract with a local management entity/managed care organization (LME/MCO), the Department of Health and Human Services shall explicitly require, as part of that contract, the LME/MCO to comply with G.S. 122C‑125.2, as enacted by subsection (b) of this section.

SECTION 11F.10.(d)  G.S. 122C‑124.2 reads as rewritten:

"§ 122C‑124.2.  Actions by the Secretary to ensure effective management of behavioral health services under the 1915(b)/(c) Medicaid Waiver.

(a)        For all local management entity/managed care organizations, the Secretary shall certify whether the LME/MCO is in compliance or is not in compliance with all requirements of subdivisions (1) through (3) of subsection (b) of this section. The Secretary's certification shall be made every six months beginning August 1, 2013. In order to ensure accurate evaluation of administrative, operational, actuarial and financial components, and overall performance of the LME/MCO, the Secretary's certification shall be based upon an internal and external assessment made by an independent external review agency in accordance with applicable federal and State laws and regulations. Beginning on February 1, 2014, and for all subsequent assessments for certification, the independent review will be made by an External Quality Review Organization approved by the Centers for Medicare and Medicaid Services and in accordance with applicable federal and State laws and regulations.

(b)        The Secretary's certification under subsection (a) of this section shall be in writing and signed by the Secretary and shall contain a clear and unequivocal statement that the Secretary has determined the local management entity/managed care organization to be in compliance with all of the following requirements:

(1)        The LME/MCO has made adequate provision against the risk of insolvency with respect to capitation payments for Medicaid enrollees. "Adequate provision" includes all of the following:

a.         The LME/MCO has submitted to the Department all the financial records and reports required to be submitted to the Department under the Contract, including monthly balance sheets.

b.         There are no consecutive three‑month periods during which the LME/MCO's ratio of current assets to current liabilities is less than 1.0, based on a monthly review of the LME/MCO's balance sheets for each month of the three‑month period, as determined by the Secretary.

c.         An intradepartmental monitoring team, as designated by the Secretary and consisting of the Secretary or a designee, representatives of the Division of Medical Assistance, and representatives of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, utilizing the monitoring team's solvency measures, determines that the LME/MCO has made adequate provisions against the risk of insolvency based on a quarterly review of the financial reports submitted to the Department by the LME/MCO.and either (i) is not required to be under a corrective action plan in accordance with G.S. 122C‑125.2 or (ii) is in compliance with a corrective action plan required under G.S. 122C‑125.2.

(2)        The LME/MCO is making timely provider payments. The Secretary shall certify that an LME/MCO is making timely provider payments if there are no consecutive three‑month periods during which the LME/MCO paid less than ninety percent (90%) of clean claims for covered services within the 30‑day period following the LME/MCO's receipt of these claims during that three‑month period. As used in this subdivision, a "clean claim" is a claim that can be processed without obtaining additional information from the provider of the service or from a third party. The term includes a claim with errors originating in the LME/MCO's claims system. The term does not include a claim from a provider who is under investigation by a governmental agency for fraud or abuse or a claim under review for medical necessity.

(3)        The LME/MCO is exchanging billing, payment, and transaction information with the Department and providers in a manner that complies with all applicable federal standards, including all of the following:

a.         Standards for information transactions and data elements specified in 42 U.S.C. § 1302d‑2 of the Healthcare Insurance Portability and Accountability Act (HIPAA), as from time to time amended.

b.         Standards for health care claims or equivalent encounter information transactions specified in HIPAA regulations in 45 C.F.R. § 162.1102, as from time to time amended.

c.         Implementation specifications for Electronic Data Interchange standards published and maintained by the Accredited Standards Committee (ASC X12) and referenced in HIPAA regulations in 45 C.F.R. § 162.920, as from time to time amended.

(c)        If the Secretary does not provide a local management entity/managed care organization with the certification of compliance required by this section based upon the LME/MCO's failure to comply with any of the requirements specified in subdivisions (1) through (3) of subsection (b) of this section, the Secretary shall do the following:

(1)        Prepare a written notice informing the LME/MCO of the provisions of subdivision (1), (2), or (3) of subsection (c)(b) of this section with which the LME/MCO is deemed not to be in compliance and the reasons for the determination of noncompliance.

(2)        Cause the notice of the noncompliance to be delivered to the LME/MCO.

(3)        Not later than 10 days after the Secretary's notice of noncompliance is provided to the LME/MCO, assign the Contract of the noncompliant LME/MCO to a compliant LME/MCO.

(4)        Oversee the transfer of the operations and contracts from the noncompliant LME/MCO to the compliant LME/MCO in accordance with the provisions in subsection (e) of this section.

…."

SECTION 11F.10.(e)  Section 11F.2(f) of S.L. 2017‑57 reads as rewritten:

"SECTION 11F.2.(f)  Beginning July 1, 2017, and quarterly thereafter,thereafter until August 31, 2018, the Secretary of Health and Human Services shall evaluate the financial position of each LME/MCO relative to the solvency standards to be developed by the Department and included in the statewide Strategic Plan for Behavioral Health Services pursuant to Section 12F.10(b)(4) of S.L. 2016‑94 (approved solvency standards).

If, at any time, the Secretary determines an LME/MCO is at risk of failing financially in the ensuing two‑year period, based on the approved solvency standards, the Secretary shall immediately meet with that LME/MCO for the purpose of evaluating the reasons for the LME/MCO's vulnerable financial position, including reasons attributable to trends in performance management and utilization of services. Within 30 days after meeting with an LME/MCO pursuant to this section, the Secretary shall submit a written report of its evaluation to the LME/MCO. By October 1, 2017, the Secretary shall submit an initial report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division on each LME/MCO determined to be at risk of failing financially, identifying the reasons for each LME/MCO's vulnerable financial position.

Within 45 days after receiving the Secretary's report, the LME/MCO shall develop and submit to the Secretary, in writing, a proposed plan of corrective action with specific initiatives and actions to be implemented by the LME/MCO in order to bring its financial position into compliance with the approved solvency standards, along with a projected time line for completing each identified initiative or action and a deadline for achieving full compliance with the approved solvency standards. At a minimum, the proposed plan of corrective action shall address (i) rates paid to the LME/MCO and its providers for services, contracts, and administrative costs; (ii) utilization of services; (iii) management of the operations of the LME/MCO; and (iv) financial risk to the State.

Within 14 days after receiving the LME/MCO's proposed plan of corrective action, the Secretary shall make any changes to the proposed plan of corrective action it deems necessary for the LME/MCO to bring its financial position into compliance with the approved solvency standards and submit a final, Secretary‑approved plan of corrective action to the LME/MCO, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division.

The LME/MCO shall submit monthly reports to the Secretary on its progress under the final, Secretary‑approved plan of corrective action. The Secretary shall submit monthly reports to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division evaluating the LME/MCO's progress under the final, Secretary‑approved plan of corrective action, identifying any variance from the corrective plan of action that could be an obstacle to the LME/MCO achieving full compliance with the approved solvency standards by the deadline included in the final, Secretary‑approved corrective plan of action."

SECTION 11F.10.(f)  Subsection (d) of this section becomes effective September 1, 2018. The remainder of this section is effective when it becomes law.

 

SUBPART XI‑G. DIVISION OF HEALTH SERVICE REGULATION

 

APPROVAL FOR NURSING HOME ADMINISTRATORS TO SERVE AS ADULT CARE HOME ADMINISTRATORS

SECTION 11G.1.(a)  G.S. 131D‑2.1(2) reads as rewritten:

"(2)      Administrator. – A person approved by the Department of Health and Human Services as an assisted living administrator under G.S. 90‑288.14 or as an adult care home administrator under G.S. 90‑288.14A, who has the responsibility for the total operation of a licensed adult care home."

SECTION 11G.1.(b)  Article 20A of Chapter 90 of the General Statutes is amended by adding a new section to read:

"§ 90‑288.14A.  Approval for nursing home administrators to serve as adult care home administrators.

The Department shall approve as an adult care home administrator any individual licensed as a nursing home administrator under Article 20 of this Chapter who, within 90 calendar days after commencing employment as a nursing home administrator, successfully completes the written examination administered by the Department for assisted living administrator certification. An individual approved as an adult care home administrator pursuant to this section is deemed to meet the requirements of G.S. 90‑288.14 and may renew his or her assisted living administrator certification pursuant to G.S. 90‑288.15."

 

SUBPART XI‑H. DIVISION OF MEDICAL ASSISTANCE (MEDICAID)

 

ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE

SECTION 11H.1.  Section 11H.5(b) of S.L. 2017‑57 reads as rewritten:

"SECTION 11H.5.(b)  For the 2017‑2018 fiscal year, the Department of Health and Human Services shall deposit from its revenues one hundred sixty‑four million seven hundred thousand dollars ($164,700,000) with the Department of State Treasurer to be accounted for as nontax revenue. For the 2018‑2019 fiscal year, the Department of Health and Human Services shall deposit from its revenues one hundred forty‑ninesixty‑three million sixthree hundred thousand dollars ($149,600,000)($163,300,000) with the Department of State Treasurer to be accounted for as nontax revenue. These deposits shall represent the return of General Fund appropriations, nonfederal revenue, fund balances, or other resources from State‑owned and State‑operated hospitals that are used to provide indigent and nonindigent care services. The return from State‑owned and State‑operated hospitals to DHHS will be made from nonfederal resources in an amount equal to the amount of the payments from the Division of Medical Assistance for uncompensated care. The treatment of any revenue derived from federal programs shall be in accordance with the requirements specified in the Code of Federal Regulations, Title 2, Part 225."

 

LME/MCO INTERGOVERNMENTAL TRANSFERS

SECTION 11H.2.  Section 11H.10 of S.L. 2017‑57 reads as rewritten:

"SECTION 11H.10. The local management entities/managed care organizations (LME/MCOs) shall make intergovernmental transfers to the Department of Health and Human Services, Division of Medical Assistance (DMA), in an aggregate amount of seventeen million seven hundred thirty‑six thousand nine hundred eighty‑five dollars ($17,736,985) in the 2017‑2018 fiscal year and in an aggregate amount of eighteen million twenty‑eight thousand two hundred seventeen dollars ($18,028,217) for the 2018‑2019 fiscal year. The due date and frequency of the intergovernmental transfer required by this section shall be determined by DMA. The amount of the intergovernmental transfer that each individual LME/MCO is required to make in each fiscal year shall be as follows:

                                                                              2017‑2018                         2018‑2019

Alliance Behavioral Healthcare                            $2,994,703            $3,043,874$3,007,817

Cardinal Innovations Healthcare                          $4,118,912            $4,186,543$4,144,723

Eastpointe                                                             $2,011,858            $2,044,892$1,731,831

Partners Behavioral Health Management             $1,913,793            $1,945,216$1,960,283

Sandhills Center                                                    $1,924,822            $1,956,427$1,918,643

Trillium Health Resources                                    $2,457,426            $2,497,775$2,931,104

Vaya Health                                                          $2,315,471            $2,353,490$2,333,816

In the event that any county disengages from an LME/MCO and realigns with another LME/MCO during the 2017‑2019 fiscal biennium,2018‑2019 fiscal year, DMA shall have the authority to reallocate the amount of the intergovernmental transfer that each affected LME/MCO is required to make, taking into consideration the change in catchment area and covered population, provided that the aggregate amount of the transfers received from all LME/MCOs in each year of the fiscal biennium are achieved."

 

MEDICAID COVERAGE FOR NURSE FAMILY PARTNERSHIP MODEL PILOT

SECTION 11H.3.(a)  No later than August 1, 2018, the Department of Health and Human Services (DHHS) shall submit to the Centers for Medicare and Medicaid Services any State Plan amendments or waivers necessary to draw down a Medicaid federal match for coverage of the services provided under the County Pilot A design contained in the DHHS report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice dated January 24, 2018, entitled "Plan to Implement Coverage for Home Visits for Pregnant Women and Families with Young Children." Coverage of the services provided under the County Pilot A design shall be expanded statewide upon the conclusion of the pilot. The State Plan amendment or waivers submitted under this section shall provide for the Medicaid federal match effective July 1, 2018, as well as for the future statewide implementation.

SECTION 11H.3.(b)  No later than November 1, 2018, the Department of Health and Human Services (DHHS) shall report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice on the expected savings associated with the County Pilot A design contained in the DHHS report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice dated January 24, 2018, entitled "Plan to Implement Coverage for Home Visits for Pregnant Women and Families with Young Children." The report shall also include an expected time line for statewide implementation and expected outcomes and savings associated with the statewide expansion.

No later than six months after the conclusion of the County Pilot A program, DHHS shall report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice and the Fiscal Research Division on the actual outcomes and savings achieved through the County Pilot A program.

For the purposes of this subsection, the term "savings" shall include, but is not limited to, savings based on outcomes related to the health status of pregnant women and babies, the utilization of services based on cost, savings generated due to a decline in hospitalizations, and savings associated with future health care costs of the mother and child.

 

ESTABLISH MEDICAID COVERAGE FOR AMBULANCE TRANSPORTS TO ALTERNATIVE APPROPRIATE CARE LOCATIONS

SECTION 11H.4.(a)  No later than November 1, 2018, the Department of Health and Human Services shall submit to the Centers for Medicare and Medicaid Services (CMS) any State Plan amendments or any waivers necessary to establish Medicaid reimbursement for ambulance transports of Medicaid recipients in behavioral health crisis to behavioral health clinics or other alternative appropriate care locations. Coverage under this section shall begin July 1, 2019, or upon CMS approval of any submitted State Plan amendments or waiver, whichever date is later.

Coverage under this section shall meet the following requirements:

(1)        Medicaid reimbursement is contingent upon an Emergency Medical Services (EMS) System's ability to demonstrate its EMS providers have received appropriate education in caring for individuals in behavioral health crisis and that the EMS System has at least one partnership with a receiving facility that is able to provide care appropriate for those individuals.

(2)        An EMS System shall be required to include in its EMS System Plan a report on patient experiences and outcomes in accordance with rules adopted by the Department of Health and Human Services, Division of Health Regulation, Office of Emergency Medical Services.

Medicaid reimbursement for ambulance transports of Medicaid recipients in behavioral health crisis to behavioral health clinics or other alternative appropriate care locations shall not be implemented until CMS approval of any submitted State Plan amendments or waivers has been received.

SECTION 11H.4.(b)  No later than December 1, 2018, the Department of Health and Human Services shall report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice and the Fiscal Research Division on the following:

(1)        As required by subsection (a) of this section, a copy of the State Plan amendment or waiver to establish Medicaid reimbursement for ambulance transports of Medicaid recipients in behavioral health crisis to behavioral health clinics or other alternative appropriate care locations to begin July 1, 2019, including the proposed reimbursement methodology to be utilized.

(2)        Expected costs to the State associated with the establishment of Medicaid reimbursement for ambulance transports of Medicaid recipients in behavioral health crisis to behavioral health clinics or other alternative appropriate care locations.

(3)        Expected outcomes and savings associated with the establishment of Medicaid reimbursement for ambulance transports of Medicaid recipients in behavioral health crisis to behavioral health clinics or other alternative appropriate care locations. Expected outcomes shall include an analysis of a reduction of transfers from hospital settings, an improvement in referral to and coordination of follow‑up care, and general health status outcomes that result when a recipient is transported to an alternative appropriate care setting. Expected savings shall include an analysis of the cost difference of treatment in the alternative appropriate care location instead of a hospital emergency room setting.

(4)        Whether this coverage shall be included in the capitated Prepaid Health Plan contracts required by S.L. 2015‑245, the capitated contracts with LME/MCOs, as defined in G.S. 122C‑3, or both.

 

AMEND AUDIT FREQUENCY/COUNTY ACCURACY OF MEDICAID ELIGIBILITY DETERMINATIONS

SECTION 11H.5.(a)  G.S. 108A‑70.46 reads as rewritten:

"§ 108A‑70.46.  Audit of county Medicaid determinations.

Beginning January 1, 2019, the Department of Health and Human Services, Division of Central Management and Support, shall, on an annual basis, audit all shall audit county departments of social services for compliance with the accuracy standards adopted under G.S. 108A‑70.47 for Medicaid eligibility determinations made within a 12‑month period. This annual audit shall also include an evaluation of compliance with the quality assurance standards under G.S. 108A‑70.48 by the county department of social services. Audits shall be conducted for initial Medicaid eligibility determination applications as well as Medicaid reenrollment determinations. The Department shall ensure that every county is audited no less than once every three years."

SECTION 11H.5.(b)  G.S. 108A‑70.49 reads as rewritten:

"§ 108A‑70.49.  Corrective action.

(a)        If the Department's annual audit under G.S. 108A‑70.46 results in a determination that a county department of social services fails to meet any of the standards adopted under G.S. 108A‑70.47 or G.S. 108A‑70.48, the Department and the county department of social services shall enter into a joint corrective action plan to improve the accurate processing of applications.

(b)        A joint corrective action plan entered into pursuant to this section shall specifically identify the following components:

(1)        The duration of the joint corrective action plan, not to exceed 24 months. If a county department of social services shows measurable progress in meeting the performance requirements in the joint corrective action plan, then the duration of the joint corrective action plan may be extended by six months, but in no case shall a joint corrective action plan exceed 36 months.

(2)        A plan for improving the accurate processing of applications that specifically describes the actions to be taken by the county department of social services and the Department.

(3)        The performance requirements for the county department of social services that constitute successful completion of the joint corrective action plan.

(4)        Acknowledgment that failure to successfully complete the joint corrective action plan will result in temporary assumption of Medicaid eligibility administration by the Department, in accordance with G.S. 108A‑70.50.

(c)        Any county department of social services under a joint corrective action plan shall be audited under G.S. 108A‑70.46 on an annual basis until the joint corrective action plan is successfully completed or until the failure to successfully complete the joint corrective action plan results in the temporary assumption of Medicaid eligibility administration by the Department, in accordance with G.S. 108A‑70.50."

SECTION 11H.5.(c)  G.S. 108A‑70.51 reads as rewritten:

"§ 108A‑70.51.  Reporting.

Beginning with the calendar year 2020, no later than March 1 of each year, the Department shall submit a report to the Joint Legislative Committee on Medicaid and NC Health Choice, the Fiscal Research Division, and the State Auditor that contains the following information about the prior calendar year:

(1)        The annual statewide percentage of audited county departments of social services that met the accuracy standards adopted under G.S. 108A‑70.47 in the prior fiscal year.

(2)        The annual statewide percentage of audited county departments of social services that met the quality assurance standards adopted under G.S. 108A‑70.48 in the prior fiscal year.

(3)        The annual audit result for each standard adopted under G.S. 108A‑70.47 for each county of department services.services in the prior fiscal year.

(4)        The number of years in the preceding five‑year 10‑year period that each any county department of social services failed to meet the standards in G.S. 108A‑70.47 or G.S. 108A‑70.48.

(5)        A description of all corrective action activities conducted by the Department and county departments of social services in accordance with G.S. 108A‑70.49.

(6)        For every county in which the performance metrics for processing Medicaid applications in an accurate manner do not show significant improvement compared to the previous fiscal year, audit of that county, a description of how the Department plans to assist county departments of social services in accuracy and quality assurance standards for Medicaid applications."

SECTION 11H.5.(d)  Section 11H.22(h) of S.L. 2017‑57 reads as rewritten:

"SECTION 11H.22.(h)  No later than Beginning 18 months after the Department has implemented the training and certification program under subsection (g) of this section, the Department shall include in its audits required under G.S. 108A‑70.46 a verification that all county departments of social services are in compliance with the certification program requirements for individuals involved in the Medicaid eligibility determination process."

 

CONFORM TO FEDERAL REPEAL OF MEDICAID SUBROGATION PROVISIONS

SECTION 11H.6.(a)  Section 11H.23 of S.L. 2017‑57 is repealed.

SECTION 11H.6.(b)  For Medicaid claims for which a settlement agreement was executed or a judgment was entered between the dates of October 1, 2017, and the date this section becomes law, the medical assistance beneficiary shall have 30 days from the date this section becomes law within which to dispute the presumption established under G.S. 108A‑57(a1), as amended by subsection (a) of this section, by applying to the court pursuant to G.S. 108A‑57(a2), as amended by subsection (a) of this section, for a determination of the portion of the beneficiary's gross recovery that represented compensation for the Medicaid claim and, in cases where a distribution to the Department of Health and Human Services has been made, a determination of any erroneous distribution to the Department.

SECTION 11H.6.(c)  If any medical assistance beneficiary or any attorney retained by a medical assistance beneficiary has reason to believe that a Medicaid claim for which a distribution was made to the Department of Health and Human Services between the dates of October 1, 2017, and the date this section becomes law resulted in a distribution that is in excess of what is required under G.S. 108A‑57, as amended by subsection (a) of this section, but does not dispute the presumption established under G.S. 108A‑57(a1), as amended by subsection (a) of this section, then the beneficiary shall have 30 days from the date this section becomes law within which to apply to a court of competent jurisdiction for a determination of any erroneous distribution to the Department.

SECTION 11H.6.(d)  Subsection (a) of this section is effective retroactively to July 1, 2017. The remainder of this section is effective when it becomes law.

 

STUDY EXPANSION OF PACE PROGRAM

SECTION 11H.7.  No later than December 1, 2018, the Department of Health and Human Services shall submit to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice a follow‑up report regarding Item 1 of the Next Steps: Consider Expansion of PACE contained in its March 14, 2018, report entitled "Study of the Program of All‑Inclusive Care for the Elderly." The follow‑up report studying the expansion of Program of All‑Inclusive Care for the Elderly (PACE) shall include the following:

(1)        No less than three options for expansion, including alternatives that involve statewide expansion and expansion by zip code specific service areas.

(2)        The fiscal impact to the State of each expansion option presented.

(3)        The impact to unserved and underserved counties based upon each expansion option presented.

(4)        An analysis of potential options for delivery of care, including strategies to adapt the PACE model of care to serve populations that are currently ineligible, diagnostic criteria other than a need for skilled nursing level care, and options to allow individuals in assisted living to participate in the PACE program.

(5)        An analysis of the cost to the State as well as any anticipated savings associated with each potential option for delivery of care.

(6)        Any specific recommendations regarding options for expansion provided under subdivision (1) of this section and options for delivery of care provided under subdivision (4) of this section. Recommendations shall include any legislation required to implement the recommendations.

 

EVALUATION OF ADMINISTRATIVE AND POLICY STAFFING NEEDS IN A MANAGED CARE SERVICE DELIVERY ENVIRONMENT

SECTION 11H.8.(a)  The Department of Health and Human Services (DHHS) shall conduct an evaluation of its current administrative and policy staffing within the Division of Medical Assistance (DMA) and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (DMH/DD/SAS), as well as its future administrative staffing requirements for the Division of Health Benefits (DHB) in light of a managed care service delivery environment. In conducting this evaluation, DHHS shall do all of the following:

(1)        Consider the changing functional needs and required staff experience and competencies within DHHS based upon the introduction of capitated contracts with local management entities/managed care organizations (LME/MCOs).

(2)        Determine whether any administrative or policy functions are duplicative between DMA and DMH/DD/SAS. This determination should take into account any functions carried out through vendor contracts.

(3)        Determine whether any administrative or policy functions performed by staff within DMA or DMH/DD/SAS are duplicative of functions either contractually required to be performed by LME/MCOs or through vendor contracts.

(4)        Evaluate whether the administrative and policy staffing needs of DMA and DMH/DD/SAS correspond to similar administrative and policy staffing needs for DHB as Medicaid moves to an expanded managed care delivery system. This evaluation shall include how the administrative and policy staffing needs of DHB will be structured to align more appropriately with a managed care environment. This evaluation should take into account any functions that will be carried out through vendor contracts.

(5)        Assess whether the current positions within DMA, DMH/DD/SAS, and DHB ensure effective monitoring of, oversight of, and analysis of relevant data to assess the success of the Medicaid and State‑funded behavioral health system.

(6)        Recommend divisional staffing changes and changes to contractual agreements to align more appropriately with a managed care delivery environment for the Medicaid and State‑funded behavioral health system. The recommendations should include a transition plan with a detailed time line for making these changes.

SECTION 11H.8.(b)  No later than October 1, 2019, the Department of Health and Human Service (DHHS) shall report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division on the evaluation required by subsection (a) of this section, including changes to positions within DHHS made as a result of the evaluation and legislation required to implement recommendations made as a result of the evaluation.

 

MEDICAID TRANSFORMATION SEVEN‑YEAR FORECAST

SECTION 11H.9.  By November 1, 2018, the Department of Health and Human Services shall submit to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice and the Fiscal Research Division a detailed seven‑year forecast for Medicaid Transformation, as required by S.L. 2015‑245, as amended. The seven‑year period for this forecast should include an annual budget detailing anticipated requirements, receipts, and appropriations for each fiscal year beginning with fiscal year 2018‑2019 and ending with fiscal year 2024‑2025. At a minimum, the following information for each fiscal year shall be addressed in the detailed seven‑year forecast:

(1)        Forecasted enrollment by program aid category and the assumptions used in each forecast.

(2)        Forecasted claims run‑out, and associated costs, for populations transitioning from a fee‑for‑service system to a managed care system and the assumptions used in developing this forecast.

(3)        Assumed capitation rates and fee‑for‑service per member per month costs, including at least all of the following components of those assumed rates and costs:

a.         Changes in utilization by service type for each program aid category compared to fiscal year 2017‑2018, including what assumptions were used to forecast those changes.

b.         New programs or changes to existing programs.

c.         Any new reimbursement rates or methodologies proposed as part of Medicaid Transformation.

(4)        The assumed Federal Medical Assistance Program (FMAP) percentage.

(5)        Additions, changes, consolidations, and eliminations of administrative staff, Department functions, or contracts that occur as a result of Medicaid Transformation.

(6)        All anticipated infrastructure funding needed, including IT funding, and the FMAP assumptions and time line for receipt of funds from an enhanced FMAP rate associated with those needs.

(7)        A forecast of expenditures and receipts from cost settlements, program integrity, rebates, supplemental payments, Disproportionate Share Hospital (DSH) payments, intergovernmental transfers, assessments, and fees.

(8)        By line item or category, any recurring or nonrecurring Medicaid Transformation transition cost that is not otherwise addressed under this section, including costs associated with the elimination of the Division of Medical Assistance.

(9)        Any savings anticipated as a result of the transition from a fee‑for‑service system to a managed care system and the source or reason for the identified savings.

 

CLARIFY SCOPE OF AUTHORITY TO DEFINE MEDICAID PROGRAM ELIGIBILITY

SECTION 11H.10.(a)  G.S. 108A‑54(e) reads as rewritten:

"(e)      The Department of Health and Human Services shall continue to administer and operate the Medicaid and NC Health Choice programs through the Division of Medical Assistance until the Division of Medical Assistance is eliminated at which time all functions, powers, duties, obligations, and services vested in the Division of Medical Assistance are vested in the Division of Health Benefits. Prior to and following the exchange of powers and duties from the Division of Medical Assistance to the Division of Health Benefits, and in addition to the powers and duties already vested in the Secretary of the Department of Health and Human Services, the Secretary of the Department of Health and Human Services shall have the following powers and duties:

(4)        Establish and adjust all program components, except for eligibility categories andcategories, resource limits, and income thresholds, of the Medicaid and NC Health Choice programs within the appropriated and allocated budget.

…."

SECTION 11H.10.(b)  G.S. 108A‑54(f) reads as rewritten:

"(f)       The General Assembly shall determine the eligibility categories andcategories, resource limits, and income thresholds for the Medicaid and NC Health Choice programs. The Department of Health and Human Services is expressly authorized to adopt temporary and permanent rules regarding eligibility requirements and determinations, to the extent that they do not conflict with the parameters set by the General Assembly."

SECTION 11H.10.(c)  Section 2 of S.L. 2015‑245 reads as rewritten:

"SECTION 2. Role of the General Assembly. – The General Assembly shall have the following roles and responsibilities in Medicaid and NC Health Choice transformation and governance:

(1)        Define the overall goals of transformation and the structure of the delivery system for the programs.

(2)        Monitor the development of transformation plans and implementation through the Joint Legislative Oversight Committee on Medicaid and NC Health Choice.

(3)        Define and approve eligibility and income standardseligibility categories, resource limits, and income thresholds for the programs, including which populations will be covered by Prepaid Health Plans (PHPs).

(4)        Appropriate the annual budget for the Medicaid and NC Health Choice programs.

(5)        Confirm the Director of the Division of Health Benefits, as required by G.S. 143B‑216.85, enacted by Section 12 of this act."

SECTION 11H.10.(d)  Section 4 of S.L. 2015‑245, as amended by Section 2(b) of S.L. 2016‑121, Section 11H.17.(a) of S.L. 2017‑57, and Section 4 of S.L. 2017‑186, reads as rewritten:

"SECTION 4. Structure of Delivery System. – The transformed Medicaid and NC Health Choice programs described in Section 1 of this act shall be organized according to the following principles and parameters:

(1)        DHHS authority. – The Department of Health and Human Services (DHHS) shall have full authority to manage the State's Medicaid and NC Health Choice programs provided that the total expenditures, net of agency receipts, do not exceed the authorized budget for each program, except the General Assembly shall determine eligibility categoriescategories, resource limits, and income thresholds. DHHS shall be responsible for planning and implementing the Medicaid transformation required by this act.

…."

 

INCREASE NUMBER OF MEDICAL PROFESSIONAL PROVIDERS ELIGIBLE FOR SUPPLEMENTAL PAYMENTS

SECTION 11H.11.(a)  Effective July 1, 2018, supplemental payments that increase reimbursement to the average commercial rate for certain eligible medical providers described in the Medicaid State Plan, Attachment 4.19‑B, Section 5, Pages 2 and 3, shall be modified to increase the number of eligible medical professional providers listed in subdivision (1) of Section 12H.13(a) of S.L. 2014‑100 by 60. The allocation of the increase among the listed entities shall be determined by the Department of Health and Human Services.

SECTION 11H.11.(b)  No later than October 1, 2018, the Department of Health and Human Services shall report to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice regarding the allocation of the 60 additional medical professional providers eligible for supplemental payments, as required by subsection (a) of this section. This report shall also include a detailed analysis of how the increase in eligible medical professional providers will increase access to health care in rural areas of the State.

 

MEDICAID AND HEALTH CHOICE PROVIDER SCREENING CHANGES

SECTION 11H.12.(a)  G.S. 108C‑3 reads as rewritten:

"§ 108C‑3.  Medicaid and Health Choice provider screening.

(a)        Provider Screening. – The Department shall conduct provider screening of Medicaid and Health Choice providers in accordance with applicable State or federal law or regulation.

(b)        Enrollment Screening. – The Department must screen all initial provider applications for enrollment in Medicaid and Health Choice, including applications for a new practice location, and all revalidation requests based on Department assessment of risk and assignment of the provider to a categorical risk level of "limited," "moderate," or "high." If a provider could fit within more than one risk level described in this section, the highest level of screening is applicable.

(c)        Limited Categorical Risk Provider Types. – The following provider types are hereby designated as "limited" categorical risk:

(1)        Ambulatory surgical centers.

(1a)      Behavioral health and intellectual and developmental disability provider agencies that are nationally accredited by an entity approved by the Secretary.

(2)        End‑stage renal disease facilities.

(3)        Federally qualified health centers.

(4)        Health programs operated by an Indian Health Program (as defined in section 4(12) of the Indian Health Care Improvement Act) or an urban Indian organization (as defined in section 4(29) of the Indian Health Care Improvement Act) that receives funding from the Indian Health Service pursuant to Title V of the Indian Health Care Improvement Act.

(5)        Histocompatibility laboratories.

(6)        Hospitals, including critical access hospitals, Department of Veterans Affairs Hospitals, and other State or federally owned hospital facilities.

(6a)      Licensed outpatient behavioral health providers.

(7)        Local Education Agencies.

(8)        Mammography screening centers.

(9)        Mass immunization roster billers.

(10)      Nursing facilities, including Intermediate Care Facilities for the Mentally Retarded.Individuals with Intellectual Disabilities.

(11)      Organ procurement organizations.

(12)      Physician or nonphysician practitioners (including nurse practitioners, CRNAs, physician assistants, physician extenders, occupational therapists, speech/language pathologists, chiropractors, and audiologists), optometrists, dentists and orthodontists, and medical groups or clinics.

(13)      Radiation therapy centers.

(14)      Rural health clinics.

(15)      Hearing aid dealers.

(16)      Portable X‑ray suppliers.

(17)      Religious nonmedical health care institutions.

(18)      Registered dieticians.

(19)      Clearinghouses, billing agents, and alternate payees.

(20)      Local health departments.

(d)       When the Department designates a provider as a "limited" categorical level of risk, the Department shall conduct such screening functions as required by federal law.

(e)        Moderate Categorical Risk Provider Types. – The following provider types are hereby designated as "moderate" categorical risk:

(1)        Ambulance services.

(2)        Comprehensive outpatient rehabilitation facilities.

(3)        Critical Access Behavioral Health Agencies.

(4)        Repealed by Session Laws 2013‑378, s. 6, effective October 1, 2013.

(5)        Hospice organizations.

(6)        Independent clinical laboratories.

(7)        Independent diagnostic testing facilities.

(8)        Pharmacy Services.

(9)        Physical therapists enrolling as individuals or as group practices.

(10)      Revalidating adult care homes delivering Medicaid‑reimbursed services.

(11)      Revalidating agencies providing durable medical equipment, including, but not limited to, orthotics and prosthetics.

(12)      Revalidating agencies providing home nonbehavioral health home‑ or community‑based services pursuant to waivers authorized by the federal Centers for Medicare and Medicaid Services under 42 U.S.C. § 1396n(c).

(13)      Revalidating agencies providing private duty nursing, home health, personal care services or in‑home care services, or home infusion.

(14)      Nonemergency medical transportation.

(f)        When the Department designates a provider as a "moderate"' categorical level of risk, the Department shall conduct such screening functions as required by federal law and regulation.

(g)        High Categorical Risk Provider Types. – The following provider types are hereby designated as "high" categorical risk:

(1)        Prospective (newly enrolling) adult care homes delivering Medicaid‑reimbursed services.

(2)        Agencies providing behavioral health services, excluding Critical Access Behavioral Health Agencies.(i) behavioral health and intellectual and developmental disability provider agencies that are nationally accredited by an entity approved by the Secretary and (ii) licensed outpatient behavioral health providers.

(3)        Directly enrolled outpatient behavioral health services providers.

(4)        Prospective (newly enrolling) agencies providing durable medical equipment, including, but not limited to, orthotics and prosthetics.

(5)        Agencies providing HIV case management.

(6)        Prospective (newly enrolling) agencies providing home nonbehavioral health home‑ or community‑based services pursuant to waivers authorized by the federal Centers for Medicare and Medicaid Services under 42 U.S.C. § 1396n(c).

(7)        Prospective (newly enrolling) agencies providing personal care services or in‑home care services.

(8)        Prospective (newly enrolling) agencies providing private duty nursing, home health, or home infusion.

(9)        Providers against whom the Department has imposed a payment suspension based upon a credible allegation of fraud in accordance with 42 C.F.R. § 455.23 within the previous 12‑month period. The Department shall return the provider to its original risk category not later than 12 months after the cessation of the payment suspension.

(10)      Providers that were excluded, or whose owners, operators, or managing employees were excluded, by the U.S. Department of Health and Human Services Office of Inspector General, the Medicare program, or another state's Medicaid or Children's Health Insurance Program within the previous 10 years.

(11)      Providers who have incurred a Medicaid or Health Choice final overpayment, assessment, or fine to the Department in excess of twenty percent (20%) of the provider's payments received from Medicaid and Health Choice in the previous 12‑month period. The Department shall return the provider to its original risk category not later than 12 months after the completion of the provider's repayment of the final overpayment, assessment, or fine.

(12)      Providers whose owners, operators, or managing employees were convicted of a disqualifying offense pursuant to G.S. 108C‑4 but were granted an exemption by the Department within the previous 10 years.

(h)        When the Department designates a provider as a "high" categorical level of risk, the Department shall conduct such screening functions as required by federal law and regulation.

(i)         For providers dually enrolled in the federal Medicare program and Medicaid, the Department may rely on the results of the provider screening performed by Medicare contractors.

(j)         For out‑of‑state providers, the Department may rely on the results of the provider screening performed by the Medicaid agencies or Children's Health Insurance Program agencies of other states."

SECTION 11H.12.(b)  G.S. 108C‑2 is amended by adding a new subdivision to read:

"(12)    Secretary. – The Secretary of the Department of Health and Human Services."

SECTION 11H.12.(c)  This section is effective when it becomes law and applies to initial provider applications and revalidation requests made on or after that day.

 

SUBPART XI‑I. DIVISION OF HEALTH BENEFITS

 

USE OF MEDICAID TRANSFORMATION FUND FOR MEDICAID TRANSFORMATION NEEDS

SECTION 11I.1.(a)  There is appropriated from the Medicaid Transformation Reserve in the General Fund to the Medicaid Transformation Fund, established under Section 12H.29 of S.L. 2015‑241, the sum of sixty million dollars ($60,000,000) in nonrecurring funds for the 2018‑2019 fiscal year.

SECTION 11I.1.(b)  Subject to the fulfillment of conditions specified in subsection (d) of this section, the sum of up to sixty million dollars ($60,000,000) in nonrecurring funds from the Medicaid Transformation Fund may be transferred to the Department of Health and Human Services, Division of Health Benefits (DHB), for the sole purpose of providing the State share for up to one hundred ninety‑two million dollars ($192,000,000) in total requirements for qualifying needs directly related to Medicaid Transformation, as required by S.L. 2015‑241, as amended. Funds may be transferred to DHB as qualifying needs arise during the 2018‑2019 fiscal year and need not be transferred in one lump sum.

For the purposes of this section, the term "qualifying need" shall be limited to information technology, staffing, including time‑limited staffing, and contracts related to the following Medicaid Transformation needs:

(1)        American Sign Language interpreters.

(2)        An Electronic Data Interchange and Information Exchange Portal.

(3)        Development of new operating procedures and operational support.

(4)        Enrollment broker services.

(5)        Finance and program integrity capabilities.

(6)        Ombudsman programs.

(7)        Provider credentialing verification.

(8)        Provider data management.

(9)        Startup costs associated with program design and procurement support.

(10)      Technical and operational integration.

SECTION 11I.1.(c)  A request by the Department of Health and Human Services, Division of Health Benefits (DHB), for the transfer of funds pursuant to subsection (c) of this section shall be made to the Office of State Budget and Management (OSBM) and shall include the amount requested and the specific qualifying need for which the funds are to be used. No funds shall be transferred to DHB until OSBM verifies the following information:

(1)        The amount requested is to be used for a qualifying need in the 2018‑2019 fiscal year.

(2)        The amount requested provides a State share that will not result in total requirements that exceed one hundred ninety‑two million dollars ($192,000,000).

SECTION 11I.1.(d)  Any federal funds received in any fiscal year by the Department of Health and Human Services, Division of Health Benefits (DHB), that represent a return of State share already expended on a qualifying need related to the funds received by the DHB under this section shall be deposited into the Medicaid Transformation Fund.

 

SUBPART XI‑J. MISCELLANEOUS [RESERVED]

 

SUBPART XI‑K. DIVISIONS OF VOCATIONAL REHABILITATION, SERVICES FOR THE BLIND, AND SERVICES FOR THE DEAF AND HARD OF HEARING [RESERVED]

 

SUBPART XI‑L. DHHS BLOCK GRANTS

 

REVISE DHHS BLOCK GRANTS

SECTION 11L.1.  Section 11L.1 of S.L. 2017‑57, as amended by Section 3.4 of S.L. 2017‑197, reads as rewritten:

"DHHS BLOCK GRANTS

"SECTION 11L.1.(a)  Except as otherwise provided, appropriations from federal block grant funds are made for each year of the fiscal biennium ending June 30, 2019, according to the following schedule:

 

TEMPORARY ASSISTANCE FOR                          FY 2017‑2018                    FY 2018‑2019

      NEEDY FAMILIES (TANF) FUNDS

 

Local Program Expenditures

 

      Division of Social Services

 

      01. Work First Family Assistance                            $49,479,444     $49,479,444$41,722,815

 

      02. Work First County Block Grants                          80,093,566                           80,093,566

 

      03. Work First Electing Counties                                 2,378,213                             2,378,213

 

      04. Adoption Services – Special

            Children Adoption Fund                                         2,026,877                             2,026,877

 

      05. Child Protective Services – Child

            Welfare Workers for Local DSS                            9,412,391                             9,412,391

 

      05A. Funding for Counties to Assist with County

            Implementation of NC FAST, Project 4                               0                                639,158

 

      06. Child Welfare Program                                              775,176                                775,176

            Improvement Plan

 

      07. Child Welfare Collaborative                                     400,000                                400,000

 

      08. Child Welfare Initiatives                                        1,400,000                             1,400,000

 

Division of Child Development and Early Education

 

      09. Subsidized Child Care Program                           53,605,680         58,112,73568,070,412

 

      10. NC Pre‑K Services                                                 6,000,000         12,200,00062,200,000

 

      10A. Swap Child Care Subsidy                                       392,420                                294,697

 

Division of Public Health

 

      11. Teen Pregnancy Prevention Initiatives                   2,950,000             2,950,0003,200,000

 

DHHS Administration

 

      12. Division of Social Services                                    2,482,260                             2,482,260

 

      13. Office of the Secretary                                                 34,042                                  34,042

 

      14. Eligibility Systems – Operations and

            Maintenance                                                           2,908,598                             2,765,192

 

      15. NC FAST Implementation                                          48,495                875,2641,560,070

 

Transfers to Other Block Grants

 

Division of Child Development and Early Education

 

      16. Transfer to the Child Care and

            Development Fund                                               71,773,001         71,773,00121,773,001

 

Division of Social Services

 

      17. Transfer to Social Services Block

            Grant for Child Protective Services –

            Training                                                                  1,300,000                             1,300,000

 

      18. Transfer to Social Services Block

            Grant for Child Protective Services                        5,040,000                             5,040,000

 

      19. Transfer to Social Services Block

            Grant for County Departments of

            Social Services for Children's Services                  7,500,000           7,500,00013,097,783

 

      20. Transfer to Social Services Block

            Grant – Foster Care Services                                  1,385,152                             1,385,152

 

      21. Transfer to Social Services Block

            Grant – Child Advocacy Centers                                          0                             1,582,000

 

      22. Transfer to Social Services Block

            Grant – Child Protective Services,

            Child Welfare Training for Counties                                    0                                737,067

 

      23. Division of Social Services – Workforce

            Investment Opportunities Act (WIOA)                                0                                  93,216

 

TOTAL TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES (TANF) FUNDS                      $301,385,315                       $312,678,010$324,463,088

 

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

(TANF) EMERGENCY CONTINGENCY FUNDS

 

Local Program Expenditures

 

Division of Child Development and Early Education

 

      01. Subsidized Child Care                                        $28,600,000                         $28,600,000$25,036,470

 

      02. Swap for Subsidized Child Care                             3,304,255                                           0

 

TOTAL TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES (TANF) EMERGENCY

CONTINGENCY FUNDS                                           $31,904,255                         $28,600,000$25,036,470

 

SOCIAL SERVICES BLOCK GRANT

 

Local Program Expenditures

 

Divisions of Social Services and Aging and Adult Services

 

      01. County Departments of Social Services

            (Transfer From TANF $7,500,000)$13,097,783)    $32,971,498                   $33,003,632

 

      02. EBCI Tribal Public Health and Human Services      244,740                                244,740

 

      03. Child Protective Services

            (Transfer From TANF)                                           5,040,000                             5,040,000

 

      04. State In‑Home Services Fund                                 1,943,950                             1,943,950

 

      05. Adult Protective Services                                       1,245,363                             1,245,363

 

      06. State Adult Day Care Fund                                     1,994,084                             1,994,084

 

      07. Child Protective Services/CPS

            Investigative Services – Child Medical

            Evaluation Program                                                   901,868                                901,868

 

      08. Special Children Adoption Incentive Fund               462,600                                462,600

 

      09. Child Protective Services – Child

            Welfare Training for Counties

            (Transfer From TANF)                                           1,300,000                             1,300,000

 

      10. Child Protective Services – Child

            Welfare Training for Counties

            (Transfer from TANF $737,067)                               737,067                                737,067

 

      11. Home and Community Care Block

            Grant (HCCBG)                                                      1,696,888             1,696,8882,696,888

 

      12. Child Advocacy Centers

            (Transfer from TANF $1,582,000)                            582,000                582,0001,582,000

 

      13. Guardianship – Division of Social Services              815,362                815,3621,802,671

 

      14. Foster Care Services

            (Transfer From TANF)                                           1,385,152                             1,385,152

 

Division of Central Management and Support

 

      15. DHHS Competitive Block Grants

            for Nonprofits                                                         4,524,525             4,524,5254,774,525

 

Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

 

      16. Mental Health Services – Adult and

            Child/Developmental Disabilities Program/

            Substance Abuse Services – Adult                         4,181,729                             4,149,595

 

DHHS Program Expenditures

 

Division of Services for the Blind

 

      17. Independent Living Program                                  3,361,323             3,361,3233,447,247

 

Division of Health Service Regulation

 

      18. Adult Care Licensure Program                                  381,087                                381,087

 

      19. Mental Health Licensure and

            Certification Program                                                190,284                                190,284

 

Division of Aging and Adult Services

 

      20. Guardianship                                                           3,825,443                             3,825,443

 

DHHS Administration

 

      21. Division of Aging and Adult Services                       577,745                   577,745659,503

 

      22. Division of Social Services                                       634,680                                634,680

 

      23. Office of the Secretary/Controller's Office               127,731                                127,731

 

      24. Legislative Increases/Fringe Benefits                       236,278                                236,278

 

      25. Division of Child Development and

            Early Education                                                           13,878                                  13,878

 

      26. Division of Mental Health, Developmental

            Disabilities, and Substance Abuse Services                27,446                                  27,446

 

      27. Division of Health Service Regulation                      118,946                                118,946

 

TOTAL SOCIAL SERVICES BLOCK GRANT      $69,521,667                         $69,521,667$72,926,658

 

LOW‑INCOME ENERGY ASSISTANCE BLOCK GRANT

 

Local Program Expenditures

 

Division of Social Services

 

      01. Low‑Income Energy Assistance

            Program (LIEAP)                                               $36,402,610                         $35,419,272$43,982,501

 

      02. Crisis Intervention Program (CIP)                        36,402,610         35,419,27243,982,501

 

Local Administration

 

Division of Social Services

 

      03. County DSS Administration                                   5,978,512             5,817,0147,223,378

 

DHHS Administration

 

Division of Central Management and Support

 

      04. Division of Social Services                                         10,000                                  10,000

 

      05. Office of the Secretary/DIRM                                   252,603                                128,954

 

      06. Office of the Secretary/Controller's Office                 18,378                                  18,378

 

      07. NC FAST Development                                            139,991             2,468,3902,287,188

 

      08. NC FAST Operations and Maintenance                 2,135,701                             2,539,033

 

Transfers to Other State Agencies

 

Department of Environmental Quality

 

      09. Weatherization Program                                       10,716,043         10,426,57310,112,346

 

      10. Heating Air Repair and Replacement

            Program (HARRP)                                                 5,701,752             5,547,7325,445,109

 

      11. Local Residential Energy Efficiency Service

            Providers – Weatherization                                       439,982                   428,097561,797

 

      12. Local Residential Energy Efficiency Service

            Providers – HARRP                                                  234,105                   227,781302,506

 

      13. DENR DEQ – Weatherization Administration         439,982                   428,097561,797

 

      14. DENR DEQ – HARRP Administration                    234,105                   227,781302,506

 

Department of Administration

 

      15. N.C. Commission on Indian Affairs                            87,736                                  87,736

 

TOTAL LOW‑INCOME ENERGY

      ASSISTANCE BLOCK GRANT                          $99,194,110                         $99,194,110$117,545,730

 

CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

 

Local Program Expenditures

 

Division of Child Development and Early Education

 

      01. Child Care Services

            (Smart Start $7,000,000)                                  $152,923,849                       $152,416,794$228,856,999

 

      02. Transfer from TANF Block Grant

            for Child Care Subsidies                                       71,773,001         71,773,00121,773,001

 

      03. Quality and Availability Initiatives

            (TEACH Program $3,800,000)                            45,761,678         45,761,67855,782,313

 

DHHS Administration

 

Division of Child Development and Early Education

 

      04. DCDEE Administrative Expenses                          9,042,159             8,929,3249,352,632

 

Division of Social Services

 

      05. Local Subsidized Child Care

            Services Support                                                   16,436,361         16,436,36118,503,830

 

      06. Direct Deposit for Child Care Payments                   505,100                                505,100

 

Division of Central Management and Support

 

      07. NC FAST Development                                              24,237                   427,865396,999

 

      08. NC FAST Operations and Maintenance                 2,758,389                             2,581,225

 

      09. DHHS Central Administration – DIRM

            Technical Services                                                     645,162                                645,162

 

      10. Central Regional Maintenance                                  287,854                                287,854

 

      11. DHHS Central Administration                                      7,346                                    7,346

 

Division of Public Health

 

      12. Child Care Health Consultation Contracts                  62,205                                  62,205

 

TOTAL CHILD CARE AND DEVELOPMENT

      FUND BLOCK GRANT                                      $300,227,341                       $299,833,915$338,754,666

 

MENTAL HEALTH SERVICES BLOCK GRANT

 

Local Program Expenditures

 

      01. Mental Health Services – Child                            $3,619,833                           $3,619,833$4,118,045

 

      02. Mental Health Services – Adult/Child                 10,967,792         10,967,79212,477,331

 

      03. Crisis Solutions Initiative – Critical

            Time Intervention                                                      750,000                              750,0000

 

      04. Mental Health Services – First

            Psychotic Symptom Treatment                              1,430,851             1,430,8512,321,873

 

      04A. Three‑Way Contracts                                                         0                             4,101,480

 

DHHS Administration

 

Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

 

      05. Administration                                                           200,000                                200,000

 

TOTAL MENTAL HEALTH SERVICES

      BLOCK GRANT                                                    $16,968,476                         $16,968,476$23,218,729

 

SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT

 

Local Program Expenditures

 

Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

 

      01. Substance Abuse – HIV and IV Drug                  $3,919,723                           $3,919,723

 

      02. Substance Abuse Prevention                                  8,998,382                             8,998,382

 

      03. Substance Abuse Services – Treatment for

            Children/Adults

            (Medication‑Assisted Opioid Use Disorder

            Treatment Pilot Program $500,000;

            First Step Farm of WNC, Inc. $100,000)             27,722,717         27,621,28631,032,102

 

      04. Crisis Solutions Initiatives – Walk‑In

            Crisis Centers                                                             420,000                              420,0000

 

      05. Crisis Solutions Initiatives – Collegiate

            Wellness/Addiction Recovery                                1,085,000                             1,085,000

 

      06. Crisis Solutions Initiatives – Community

            Paramedic Mobile Crisis Management                       60,000                                  60,000

 

      07. Crisis Solutions Initiatives – Innovative

            Technologies                                                                41,000                                41,0000

 

DHHS Program Expenditures

 

Division of Central Management and Support

 

      08. Competitive Block Grant                                        1,600,000                             1,600,000

 

DHHS Administration

 

Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

 

      09. Administration                                                           454,000                                454,000

 

      10. Controlled Substance Reporting System

            Enhancement                                                             326,224                                427,655

 

      10A. Veteran's Initiatives                                                250,000                                250,000

 

Division of Public Health

 

      11. HIV Testing for Individuals in Substance

            Abuse Treatment                                                       965,949                   965,949241,488

 

Transfers to Other State Agencies

 

Department of Military and Veterans Affairs

 

      12. Crisis Solutions Initiative – Veteran's Crisis             250,000                                250,000

 

TOTAL SUBSTANCE ABUSE PREVENTION

      AND TREATMENT BLOCK GRANT                $45,842,995                         $45,842,995$48,068,350

 

MATERNAL AND CHILD HEALTH BLOCK GRANT

 

Local Program Expenditures

 

Division of Public Health

 

      01. Women and Children's Health Services

            (Safe Sleep Campaign $45,000; Sickle Cell

            Centers $100,000; Prevent Blindness $575,000;

            March of Dimes $350,000; Teen Pregnancy

            Prevention Initiatives $650,000;

            17P Project $52,000; Nurse‑Family

            Partnership $550,000; Carolina Pregnancy

            Care Fellowship $400,000; Perinatal &

            Neonatal Outreach Coordinator Contracts

            $440,000)$440,000; Mountain Area

            Pregnancy Center $250,000)                              $11,802,435                         $11,802,435$13,858,445

 

      02. Oral Health                                                                  48,227                                  48,227

 

      03. Evidence‑Based Programs in Counties

            With Highest Infant Mortality Rates                      1,575,000                             1,575,000

 

      03A. Every Week Counts                                             2,200,000             2,200,0003,000,000

 

DHHS Program Expenditures

 

      04. Children's Health Services                                      1,427,323                             1,427,323

 

      05. Women's Health – Maternal Health                          169,864                                169,864

 

      06. Women and Children's Health – Perinatal

            Strategic Plan Support Position                                   68,245                                  68,245

 

      07. State Center for Health Statistics                               158,583                                158,583

 

      08. Health Promotion – Injury and

            Violence Prevention                                                    87,271                                  87,271

 

DHHS Administration

 

      09. Division of Public Health Administration                 552,571                                552,571

 

TOTAL MATERNAL AND CHILD

      HEALTH BLOCK GRANT                                  $18,089,519                         $18,089,519$20,945,529

 

PREVENTIVE HEALTH SERVICES BLOCK GRANT

 

Local Program Expenditures

 

      01. Physical Activity and Prevention                         $3,545,093                           $3,545,093

 

      02. Injury and Violence Prevention

            (Services to Rape Victims – Set‑Aside)                    180,778                                180,778

 

DHHS Program Expenditures

 

Division of Public Health

 

      03. HIV/STD Prevention and

            Community Planning                                                 145,819                                145,819

 

      04. Oral Health Preventive Services                                451,809                                451,809

 

      05. Laboratory Services – Testing,

            Training, and Consultation                                          21,012                                  21,012

 

      06. Injury and Violence Prevention

            (Services to Rape Victims – Set‑Aside)                    192,315                                192,315

 

      07. State Laboratory Services – Testing,

            Training, and Consultation                                        199,634                                199,634

 

      08. Performance Improvement and

            Accountability                                                        1,104,455                             1,104,455

 

      09. State Center for Health Statistics                               107,291                                107,291

 

DHHS Administration

 

Division of Public Health

 

      10. Division of Public Health                                          172,820                                172,820

 

TOTAL PREVENTIVE HEALTH

SERVICES BLOCK GRANT                                       $6,121,026                           $6,121,026

 

COMMUNITY SERVICES BLOCK GRANT

 

      01. Community Action Agencies                             $24,187,142                         $24,187,142$17,196,466

 

      02. Limited Purpose Agencies                                      1,343,730             1,343,7301,780,434

 

      03. Office of Economic Opportunity                            1,343,730                1,343,730801,021

 

      04. Office of Economic Opportunity – Workforce

            Investment Opportunities Act (WIOA)                                0                                  60,000

 

TOTAL COMMUNITY SERVICES

      BLOCK GRANT                                                    $26,874,602                         $26,874,602$19,837,921

 

"GENERAL PROVISIONS

"SECTION 11L.1.(b)  Information to Be Included in Block Grant Plans. – The Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department, and each plan shall include the following:

(1)        A delineation of the proposed allocations by program or activity, including State and federal match requirements.

(2)        A delineation of the proposed State and local administrative expenditures.

(3)        An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.

(4)        A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.

(5)        A projection of current year expenditures by program or activity.

(6)        A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.

"SECTION 11L.1.(c)  Changes in Federal Fund Availability. – If the Congress of the United States increases the federal fund availability for any of the Block Grants or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall allocate the increase proportionally across the program and activity appropriations identified for that Block Grant in this section. In allocating an increase in federal fund availability, the Office of State Budget and Management shall not approve funding for new programs or activities not appropriated in this section.

If the Congress of the United States decreases the federal fund availability for any of the Block Grants or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall develop a plan to adjust the Block Grants based on reduced federal funding.

Notwithstanding the provisions of this subsection, for fiscal years 2017‑2018 and 2018‑2019, increases in the federal fund availability for the Temporary Assistance to Needy Families (TANF) Block Grant shall be used only for the North Carolina Child Care Subsidy program to pay for child care in four‑ or five‑star rated facilities for four‑year‑old children and shall not be used to supplant State funds.

Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division.

"SECTION 11L.1.(d)  Except as otherwise provided, appropriations from federal Block Grant funds are made for each year of the fiscal biennium ending June 30, 2019, according to the schedule enacted for State fiscal years 2017‑2018 and 2018‑2019 or until a new schedule is enacted by the General Assembly.

"SECTION 11L.1.(e)  All changes to the budgeted allocations to the Block Grants or contingency funds and other grants related to existing Block Grants administered by the Department of Health and Human Services that are not specifically addressed in this section shall be approved by the Office of State Budget and Management, and the Management. The Office of State Budget and Management shall not approve funding for new programs or activities not appropriated in this section. Additionally, if budgeted allocations are decreased, the Office of State Budget and Management shall not approve any reduction of funds designated for subrecipients in subsection (a) of this section under (i) Item 03 of the Substance Abuse Prevention and Treatment Block Grant or (ii) Item 01 of the Maternal and Child Health Block Grant. The Office of State Budget and Management shall consult with the Joint Legislative Oversight Committee on Health and Human Services for review prior to implementing the any changes. The In consulting, the report shall include an itemized listing of affected programs, including associated changes in budgeted allocations. All changes to the budgeted allocations to the Block Grants shall be reported immediately to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division. This subsection does not apply to Block Grant changes caused by legislative salary increases and benefit adjustments.

"SECTION 11L.1.(f)  Except as otherwise provided, the Department of Health and Human Services shall have flexibility to transfer funding between the Temporary Assistance for Needy Families (TANF) Block Grant and the TANF Emergency Contingency Funds Block Grant so long as the total allocation for the line items within those block grants remains the same.

 

"TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) FUNDS

"SECTION 11L.1.(g)  The sum of eighty million ninety‑three thousand five hundred sixty‑six dollars ($80,093,566) for each year of the 2017‑2019 fiscal biennium appropriated in this section in TANF funds to the Department of Health and Human Services, Division of Social Services, 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. The Division shall also have the authority to realign appropriated funds from Work First Family Assistance for electing counties to the Work First County Block Grant for electing counties based on current year expenditures so long as the electing counties meet Maintenance of Effort requirements.

"SECTION 11L.1.(h)  The sum of nine million four hundred twelve thousand three hundred ninety‑one dollars ($9,412,391) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in TANF funds for each fiscal year of the 2017‑2019 fiscal biennium for child welfare improvements shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and post‑adoption services for eligible families.

Counties shall maintain their level of expenditures in local funds for Child Protective Services workers. Of the Block Grant funds appropriated for Child Protective Services workers, the total expenditures from State and local funds for fiscal years 2017‑2018 and 2018‑2019 shall not be less than the total expended from State and local funds for the 2012‑2013 fiscal year.

"SECTION 11L.1.(i)  The sum of two million twenty‑six thousand eight hundred seventy‑seven dollars ($2,026,877) appropriated in this section in TANF funds to the Department of Health and Human Services, Special Children Adoption Fund, for each fiscal year of the 2017‑2019 fiscal biennium shall be used in accordance with G.S. 108A‑50.2. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A‑50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.

"SECTION 11L.1.(j)  The sum of one million four hundred thousand dollars ($1,400,000) appropriated in this section in TANF funds to the Department of Health and Human Services, Division of Social Services, for each fiscal year of the 2017‑2019 fiscal biennium shall be used for child welfare initiatives to (i) enhance the skills of social workers to improve the outcomes for families and children involved in child welfare and (ii) enhance the provision of services to families in their homes in the least restrictive setting.

"SECTION 11L.1.(j1)  Of the three million two hundred thousand dollars ($3,200,000) allocated in this section in TANF funds to the Department of Health and Human Services, Division of Public Health, for the 2018‑2019 fiscal year for teen pregnancy prevention initiatives, the sum of two hundred fifty thousand dollars ($250,000) shall be used to provide services for foster care youth.

SHIFT NC shall submit a report to the Joint Legislative Oversight Committee on Health and Human Services by November 1, 2018, on the funds expended in fiscal year 2017‑2018 for teen pregnancy prevention initiatives. The report shall include, at a minimum, the amount of funds expended on (i) salaries and (ii) direct services.

 

"SOCIAL SERVICES BLOCK GRANT

"SECTION 11L.1.(k)  The sum of thirty‑two million nine hundred seventy‑one thousand four hundred ninety‑eight dollars ($32,971,498) for the 2017‑2018 fiscal year and the sum of thirty‑three million three thousand six hundred thirty‑two dollars ($33,003,632) for the 2018‑2019 fiscal year appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, 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, as well as State Social Services Block Grant funds, among the State‑level services based on current year actual expenditures.

Of the funds appropriated in this subsection for each year of the 2017‑2019 fiscal biennium for county block grants, three million dollars ($3,000,000) shall be used to assist counties in the implementation of Project 4, Child Services, in North Carolina Families Accessing Services Through Technology (NC FAST). These funds shall be available in each fiscal year of the fiscal biennium for this purpose.

"SECTION 11L.1.(l)  The sum of one million three hundred thousand dollars ($1,300,000) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for each fiscal year of the 2017‑2019 fiscal biennium shall be used to support various child welfare training projects as follows:

(1)        Provide a regional training center in southeastern North Carolina.

(2)        Provide training for residential child caring facilities.

(3)        Provide for various other child welfare training initiatives.

"SECTION 11L.1.(m)  The Department of Health and Human Services is authorized, subject to the approval of the Office of State Budget and Management, to transfer Social Services Block Grant funding allocated for departmental administration between divisions that have received administrative allocations from the Social Services Block Grant.

"SECTION 11L.1.(n)  Social Services Block Grant funds appropriated for the Special Children Adoption Incentive Fund shall require a fifty percent (50%) local match.

"SECTION 11L.1.(o)  The sum of five million forty thousand dollars ($5,040,000) appropriated in this section in the Social Services Block Grant for each fiscal year of the 2017‑2019 fiscal biennium shall be allocated to the Department of Health and Human Services, Division of Social Services. The Division shall allocate these funds to local departments of social services to replace the loss of Child Protective Services State funds that are currently used by county 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 11L.1.(p)  The sum of four million five hundred twenty‑four thousand five hundred twenty‑five dollars ($4,524,525) for each year of the 2017‑2019 fiscal biennium the 2017‑2018 fiscal year and the sum of four million seven hundred seventy‑four thousand five hundred twenty‑five dollars ($4,774,525) for the 2018‑2019 fiscal year appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services (DHHS), Division of Central Management and Support, shall be used for DHHS competitive block grants pursuant to Section 11A.14 of this act. These funds are exempt from the provisions of 10A NCAC 71R .0201(3).

"SECTION 11L.1.(q)  The sum of five hundred eighty‑two thousand dollars ($582,000) for the 2017‑2018 fiscal year and the sum of one million five hundred eighty‑two thousand dollars ($1,582,000) for the 2018‑2019 fiscal year appropriated in this section in the Social Services Block Grant for each fiscal year of the 2017‑2019 fiscal biennium to the Department of Health and Human Services, Division of Social Services, shall be used to continue support for the Child Advocacy Centers, and the funds are exempt from the provisions of 10A NCAC 71R .0201(3).

"SECTION 11L.1.(r)  The sum of three million eight hundred twenty‑five thousand four hundred forty‑three dollars ($3,825,443) for each fiscal year of the 2017‑2019 fiscal biennium appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Divisions of Social Services and Division of Aging and Adult Services, shall be used for guardianship services pursuant to Chapter 35A of the General Statutes. The Department may expend funds appropriated in this section to support existing corporate guardianship contracts during the 2017‑2018 and 2018‑2019 fiscal years.

"SECTION 11L.1.(s)  The sum of seven hundred thirty‑seven thousand sixty‑seven dollars ($737,067) appropriated in this section in the Social Services Block Grant for each fiscal year of the 2017‑2019 fiscal biennium shall be allocated to the Department of Health and Human Services, Division of Social Services. These funds shall be used to assist with training needs for county child welfare training staff and shall not be used to supplant any other source of funding for staff. County departments of social services are exempt from 10A NCAC 71R .0201(3) requiring a local match of twenty‑five percent (25%).

 

"LOW‑INCOME ENERGY ASSISTANCE BLOCK GRANT

"SECTION 11L.1.(t)  Additional emergency contingency funds received may be allocated for Energy Assistance Payments or Crisis Intervention Payments without prior consultation with the Joint Legislative Oversight Committee on Health and Human Services. Additional funds received shall be reported to the Joint Legislative Oversight Committee on Health and Human Services 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 Oversight Committee on Health and Human Services.

"SECTION 11L.1.(u)  The sum of thirty‑six million four hundred two thousand six hundred ten dollars ($36,402,610) for the 2017‑2018 fiscal year and the sum of thirty‑five million four hundred nineteen thousand two hundred seventy‑two dollars ($35,419,272) forty‑three million nine hundred eighty‑two thousand five hundred one dollars ($43,982,501) for the 2018‑2019 fiscal year appropriated in this section in the Low‑Income Energy Assistance Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used for Energy Assistance Payments for the households of (i) elderly persons age 60 and above with income up to one hundred thirty percent (130%) of the federal poverty level and (ii) disabled persons eligible for services funded through the Division of Aging and Adult Services.

County departments of social services shall submit to the Division of Social Services an outreach plan for targeting households with 60‑year‑old household members no later than August 1 of each year. The outreach plan shall comply with the following:

(1)        Ensure that eligible households are made aware of the available assistance, with particular attention paid to the elderly population age 60 and above and disabled persons receiving services through the Division of Aging and Adult Services.

(2)        Include efforts by the county department of social services to contact other State and local governmental entities and community‑based organizations to (i) offer the opportunity to provide outreach and (ii) receive applications for energy assistance.

(3)        Be approved by the local board of social services or human services board prior to submission.

 

"CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

"SECTION 11L.1.(v)  Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development and Early Education for the subsidized child care program.

"SECTION 11L.1.(w)  If funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to child care subsidies, unless otherwise prohibited by federal requirements of the grant, in order to use the federal funds fully.

 

"MENTAL HEALTH SERVICES BLOCK GRANT

"SECTION 11L.1.(x)  The sum of one million four hundred thirty thousand eight hundred fifty‑one dollars ($1,430,851) appropriated in this section in the Mental Health Services Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for each fiscal year of the 2017‑2019 fiscal biennium the 2017‑2018 fiscal year and the sum of two million three hundred twenty‑one thousand eight hundred seventy‑three dollars ($2,321,873) for the 2018‑2019 fiscal year is allocated for Mental Health Services – First Psychotic Symptom Treatment. The Division shall report on (i) the specific evidence‑based treatment and services provided, (ii) the number of persons treated, and (iii) the measured outcomes or impact on the participants served. The Division shall report to the House of Representatives Appropriations Committee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division no later than December 31 of each year.

 

"SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT

"SECTION 11L.1.(y)  The sum of two hundred fifty thousand dollars ($250,000) appropriated in this section in the Substance Abuse Prevention and Treatment Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for each fiscal year of the 2017‑2019 fiscal biennium shall be allocated to the Department of Military and Veterans Affairs, for the call‑in center established to assist veterans in locating service benefits and crisis services. The call‑in center shall be staffed by certified veteran peers within the Department of Military and Veterans Affairs and trained by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.used to support Veteran initiatives.

"SECTION 11L.1.(z)  The sum of five hundred thousand dollars ($500,000) allocated in this section in the Substance Abuse Prevention and Treatment Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for each fiscal year of the 2017‑2019 fiscal biennium shall be used for a medication‑assisted opioid use disorder treatment pilot program.

 

"MATERNAL AND CHILD HEALTH BLOCK GRANT

"SECTION 11L.1.(aa)  If federal funds are received under the Maternal and Child Health Block Grant for abstinence education, pursuant to section 912 of Public Law 104‑193 (42 U.S.C. § 710), for the 2017‑2018 fiscal year or the 2018‑2019 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an abstinence until marriage education program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C‑81(e1)(4) and (4a). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.

"SECTION 11L.1.(bb)  The sum of one million five hundred seventy‑five thousand dollars ($1,575,000) appropriated in this section in the Maternal and Child Health Block Grant to the Department of Health and Human Services, Division of Public Health, for each fiscal year of the 2017‑2019 fiscal biennium shall be used for evidence‑based programs in counties with the highest infant mortality rates. The Division shall report on (i) the counties selected to receive the allocation, (ii) the specific evidence‑based services provided, (iii) the number of women served, and (iv) any impact on the counties' infant mortality rate. The Division shall report its findings to the House of Representatives Appropriations Committee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division no later than December 31 of each year.

"SECTION 11L.1.(cc)  No more than fifteen percent (15%) of the funds provided in this section in the Maternal and Child Health Block Grant to Carolina Pregnancy Care Fellowship shall be used for administrative purposes. The balance of those funds shall be used for direct services.

"SECTION 11L.1.(dd)  The sum of sixty‑eight thousand two hundred forty‑five dollars ($68,245) allocated in this section in the Maternal and Child Health Block Grant to the Department of Health and Human Services, Division of Public Health, Women and Children's Health Section, for each fiscal year of the 2017‑2019 fiscal biennium shall not be used to supplant existing State or federal funds. This allocation shall be used for a Public Health Program Consultant position assigned full‑time to manage the North Carolina Perinatal Health Strategic Plan and provide staff support for the stakeholder work group.

"SECTION 11L.1.(ee)  The sum of one hundred thousand dollars ($100,000) allocated in this section in the Maternal and Child Health Block Grant to the Department of Health and Human Services, Division of Public Health, for each year of the 2017‑2019 fiscal biennium for community‑based sickle cell centers shall not be used to supplant existing State or federal funds.

 

"PREVENTIVE HEALTH SERVICES BLOCK GRANT

"SECTION 11L.1.(ff)  Of the four hundred fifty‑one thousand eight hundred nine dollars ($451,809) allocated in this section in the Preventive Health Services Block Grant in each year of the 2017‑2019 fiscal biennium to the Department of Health and Human Services, Division of Public Health, Oral Health Preventive Services, one hundred twenty thousand two hundred eighty‑six dollars ($120,286) shall be used to establish a Public Health Epidemiologist II position and a Dental Equipment Technician I position."

 

PART XII. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

 

FUTURE FARMERS OF AMERICA PROJECT COMPLETION

SECTION 12.1.(a)  Notwithstanding G.S. 143‑720 and G.S. 143‑721, of the funds appropriated to the Tobacco Trust Fund in this act, sixty thousand dollars ($60,000), nonrecurring for the 2018‑2019 fiscal year, shall be distributed to Southern Guilford High School to be provided to its Future Farmers of America program to complete the animal science project described in Section 13.3 of S.L. 2016‑94.

SECTION 12.1.(b)  As part of the annual report required pursuant to G.S. 143‑722(a), the Tobacco Trust Fund Commission shall report to the chairs of the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division on project completion objectives, accomplishments, and itemized expenditures from the funds provided in this section. The Commission shall assist the Future Farmers of America program receiving funds pursuant to this section in reporting on the activities for which the funds were used.

SECTION 12.1.(c)  Notwithstanding Article 8 of Chapter 143 of the General Statutes, G.S. 115C‑522, or any other provision of law to the contrary, the funds distributed in subsection (a) of this section shall be used to complete the animal science project, including furnishings and utility connections, and shall not be subject to any bidding or contract requirements.

 

OYSTER MARKETING

SECTION 12.2.  Of the funds appropriated by this act to the Department of Agriculture and Consumer Services for agricultural marketing, the sum of twenty‑five thousand dollars ($25,000) is allocated to the Seafood Marketing Office to create and implement a program for the promotion of North Carolina oysters, including branding, promotion, and outreach activities directed at consumers, restaurants, and food tourism providers. The Department shall coordinate its program with the oyster promotion activities described in Section 13.13(d) of S.L. 2017‑57.

 

CARRY FORWARD FOOD MARKETING FUNDS

SECTION 12.3.(a)  The Department of Agriculture and Consumer Services may carry forward to the 2018‑2019 fiscal year any remaining balance of the nonrecurring funds appropriated to the Department for the 2017‑2018 fiscal year by S.L. 2017‑57 to be allocated to the Food Science Processing and Innovation Center in the Core Laboratory of the North Carolina Research Campus for marketing intended to connect farmers with prospective customers, promote inbound and outbound international trade missions, strengthen existing promotional campaigns around selected commodities, and other related marketing uses.

SECTION 12.3.(b)  This section becomes effective June 30, 2018.

 

AGRICULTURAL DEVELOPMENT AND FARMLAND PRESERVATION TRUST FUND

SECTION 12.4.  Funds appropriated by this act to the North Carolina Agricultural Development and Farmland Preservation Trust Fund shall be used by the Department of Agriculture and Consumer Services in a manner that maximizes eligibility of the Fund for additional funding from federal and local governments as well as private funding sources.

 

NEW AND EMERGING CROPS PROGRAM

SECTION 12.5.(a)  Part 3 of Article 1 of Chapter 106 of the General Statutes is amended by adding a new section to read:

"§ 106‑22.7.  New and emerging crops program.

The Department of Agriculture and Consumer Services is authorized to create a program to advance and promote new and emerging crops. If the Department creates a new and emerging crops program, the Department shall merge its research initiative in bioenergy research into the program."

SECTION 12.5.(b)  No more than fifty percent (50%) of the funds appropriated by this act to the Bioenergy Research Initiative may be used by the Department of Agriculture and Consumer Services to fund efforts to advance and promote new and emerging crops authorized by subsection (a) of this section.

 

PART XIII. DEPARTMENT OF ENVIRONMENTAL QUALITY

 

WATER SAFETY

 

AUTHORIZE THE GOVERNOR, UNDER CERTAIN CIRCUMSTANCES, TO REQUIRE A FACILITY TO CEASE ALL OPERATIONS AND ACTIVITIES THAT RESULT IN THE PRODUCTION OF A POLLUTANT

SECTION 13.1.(a)  Article 21 of Chapter 143 of the General Statutes is amended by adding a new section to read:

"§ 143‑215.3E.  Authority of Governor to require facility to cease operations and activities for unauthorized PFAS discharges.

(a)        The Governor is authorized to require a facility to cease all operations and activities in the State that result in the production of a pollutant if all of the following circumstances exist:

(1)        The facility has a National Pollutant Discharge Elimination System (NPDES) permit.

(2)        The Department has determined that the facility has had unauthorized discharges of per‑ and poly‑fluoroalkyl substances (PFAS) into the air, surface water, and groundwater and these discharges have resulted in an exceedance of a standard set by the Environmental Management Commission for groundwater, surface water, or air quality, or an exceedance of a health advisory standard established by the United States Environmental Protection Agency for any chemical classified as a PFAS, and the facility has received more than one notice of violation from the Department within a two‑year period for unauthorized discharges of such substances.

(3)        The Department has been unable to stop all ongoing unauthorized discharges of such substances from the facility that result in the violation of a standard or health advisory standard within one year from the time the Department first learned of the unauthorized discharges.

(4)        The Department has determined that the best available scientific data indicates that the ongoing unauthorized discharges present a danger to the public health.

(b)        In determining whether to exercise the authority established under this section, the Governor may take into account remedial actions undertaken by the operator of the facility.

(c)        If the Governor exercises the authority established under this subsection to require a facility to cease operations and activities, the Governor shall issue an order in writing to the operator accordingly, including findings of fact that demonstrate the criteria set forth in subdivisions (1) through (4) of subsection (a) of this section have been met, which order shall be delivered by registered or certified mail, or by any means authorized by G.S. 1A‑1, Rule 4, to the facility's operator. An order to cease operations and activities issued pursuant to this subsection shall not become effective until 15 days after issuance of the order. A person to whom such order is issued may commence a contested case by filing a petition under G.S. 150B‑23 within 30 days after receipt of notice of the order. If the person does not file a petition within the required time, the Governor's decision is final and is not subject to review.

(d)       The authority established by this section shall be in addition to, and not exclusive of, other authority given to the Commission, the Secretary, and the Department under this Article to take enforcement action against a person for unauthorized discharges of PFAS into the air, surface water, and groundwater, including the authority granted under G.S. 143‑215.6C to request that the Attorney General institute a civil action in the name of the State upon the relation of the Department for injunctive relief to restrain the violation or threatened violation and for such other and further relief in the premises as the court shall deem proper."

SECTION 13.1.(b)  Subsection (a) of this section expires December 31, 2020.

 

REQUIRE ESTABLISHMENT OF PERMANENT REPLACEMENT WATER SUPPLIES FOR AFFECTED PARTIES WITH DRINKING WATER WELLS CONTAMINATED BY PER‑ AND POLY‑FLUOROALKYL SUBSTANCES

SECTION 13.1.(c)  Article 21 of Chapter 143 of the General Statutes is amended by adding a new section to read:

"§ 143‑215.2A.  Relief for contaminated private drinking water wells.

(a)        The Secretary shall, upon direction of the Governor, order any person who the Secretary finds responsible for the discharge of industrial waste that includes per‑ and poly‑fluoroalkyl substances (PFAS), including the chemical known as "GenX" (CAS registry number 62037‑80‑3 or 13252‑13‑6), into the air, groundwater, surface water, or onto the land that results in contamination of a private drinking water well, as that term is defined in G.S. 87‑85, to establish permanent replacement water supplies for affected parties. For purposes of this section, the terms (i) "contamination" means an exceedance of a standard established by the Environmental Management Commission for groundwater, surface water, or air quality, or an exceedance of a health advisory standard established by the United States Environmental Protection Agency, for any chemical classified as a PFAS, including GenX; and (ii) "affected party" means a household, business, school, or public building with a well contaminated with PFAS, including GenX, as a result of the discharge of industrial waste.

(b)        If the Secretary orders a person responsible for the discharge of a PFAS, including GenX, that results in contamination of a private drinking water well to establish a permanent replacement water supply for an affected party with such a well pursuant to subsection (a) of this section, preference shall be given to permanent replacement water supplies by connection to public water supplies; provided that (i) an affected party may elect to receive a filtration system in lieu of a connection to public water supplies and (ii) if the Department determines that connection to a public water supply to a particular affected party would be cost‑prohibitive, the Department shall authorize provision of a permanent replacement water supply to that affected party through installation of a filtration system. For affected parties for which filtration systems are installed, the person responsible shall be liable for any periodic required maintenance of the filtration system. An order issued by the Secretary pursuant to subsection (a) of this section shall include a deadline by which the responsible person must establish the permanent replacement water supply for the affected party or parties subject to the order.

(c)        An order issued by the Secretary pursuant to subsection (a) of this section shall be delivered by registered or certified mail, or by any means authorized by G.S. 1A‑1, Rule 4, to the person ordered to establish the permanent replacement water supply and shall include detailed findings of fact and conclusions in support of the order. A person to whom such order is issued may commence a contested case by filing a petition under G.S. 150B‑23 within 30 days after receipt of notice of the order. If the person does not file a petition within the required time, the Secretary's decision is final and is not subject to review.

(d)       A person required to establish a permanent replacement water supply pursuant to this section shall be jointly and severally liable for all necessary costs associated with establishment of the permanent replacement water supply. The remedy under this section is in addition to those provided by existing statutory and common law. Nothing in this section shall limit or diminish any rights of contribution for costs incurred herein.

(e)        Nothing in this section shall be construed to (i) require an eligible affected party to connect to a public water supply or receive a filtration system or (ii) obviate the need for other federal, State, and local permits and approvals.

(f)        All State entities and local governments shall expedite any permits and approvals that may be required for the establishment of permanent replacement water supplies required pursuant to this section."

SECTION 13.1.(d)  In order to ensure the expeditious establishment of alternative permanent water supplies for each affected party, in accordance with the requirements of G.S. 143‑215.2A, the sum of two million dollars ($2,000,000) of the funds appropriated in this act to the Division of Water Infrastructure of the Department of Environmental Quality is allocated to provide funding to local governments for necessary expenditures that local governments may incur as a result of activities to connect affected parties to public water supplies pursuant to an order issued under G.S. 143‑215.2A. These funds shall be deposited into the PFAS Recovery Fund, which is established within the Department as a special fund. The Department may distribute funds to local governments solely for the purposes of planning, analysis, and surveying of waterline extensions for affected parties subject to an order issued pursuant to G.S. 143‑215.2A. No later than 30 days after completion of a local government's activities to connect an affected party to a public water supply pursuant to G.S. 143‑215.2A, the Secretary shall deliver a statement of all funds paid from the PFAS Recovery Fund to the local government and the costs expended by the local government for such activities. The Department shall report on activities conducted and funds expended pursuant to this section on a quarterly basis to the Environmental Review Commission, and the Fiscal Research Division, beginning September 1, 2018.

 

FUNDS TO THE CAPE FEAR PUBLIC UTILITY AUTHORITY FOR WATER QUALITY SAMPLING, AND TESTING OF TREATMENT TECHNIQUES, TO ADDRESS PER‑ AND POLY‑FLUOROALKYL SUBSTANCES, INCLUDING GENX, AND OTHER CONTAMINANTS

SECTION 13.1.(e)  Four hundred fifty thousand dollars ($450,000) of the funds appropriated in this act to the Division of Water Infrastructure of the Department of Environmental Quality shall be used to provide a grant‑in‑aid to the Cape Fear Public Utility Authority to implement a program to:

(1)        Perform nontargeted sampling of finished drinking water from the Authority's Sweeney Water Treatment Plant and in its Aquifer Storage and Recovery Well (ASR) to identify levels of per‑ and poly‑fluoroalkyl substances (PFAS), including the chemical known as "GenX" (CAS registry number 62037‑80‑3 or 13252‑13‑6), that may be included in the water.

(2)        After establishing the baseline pursuant to testing conducted pursuant to subdivision (1) of this subsection, the Authority shall test the effectiveness of ion exchange and activated carbon technologies for treatment of PFAS, including GenX. In so doing, the Authority shall (i) install temporary ion exchange and carbon treatment systems suitable to treat 500 gallons per minute (GPM) flow as a minimum capacity and modify existing piping from the Plant and ASR to connect to the temporary treatment systems; (ii) after installation of the temporary treatment systems, test the water treated weekly, before and after treatment by ion exchange and activated carbon, over a period of six weeks at increasing flow rates to determine the relative effectiveness of the two technologies at reducing PFAS, including GenX; and (iii) after determination of the most successful treatment technology at a high flow of 500 GPM, continue sampling water treated by the technology at two‑week intervals thereafter.

The Authority shall submit an interim report on activities conducted pursuant to this section to the House Select Committee on North Carolina River Quality, the Senate Select Committee on North Carolina River Water Quality, the Fiscal Research Division, and the Environmental Review Commission no later than December 1, 2018, and a final report with sampling results and treatment data no later than June 1, 2019.

 

FUNDING TO ADDRESS PER‑ AND POLY‑FLUOROALKYL SUBSTANCES, INCLUDING GENX/USE OF EXPERTISE AND TECHNOLOGY AVAILABLE IN INSTITUTIONS OF HIGHER EDUCATION LOCATED WITHIN THE STATE

SECTION 13.1.(f)  The General Assembly finds that (i) per‑ and poly‑fluoroalkyl substances (PFAS), including the chemical known as "GenX" (CAS registry number 62037‑80‑3 or 13252‑13‑6), are present in multiple watersheds in the State, and impair drinking water and (ii) these contaminants have been discovered largely through academic research not through systematic water quality monitoring programs operated by the Department of Environmental Quality or other State or federal agencies. The General Assembly finds that the profound, extensive, and nationally recognized faculty expertise, technology, and instrumentation existing within the Universities of North Carolina at Chapel Hill and Wilmington, North Carolina State University, North Carolina A&T State University, Duke University, and other public and private institutions of higher education located throughout the State should be maximally utilized to address the occurrence of PFAS, including GenX, in drinking water resources.

SECTION 13.1.(g)  The North Carolina Policy Collaboratory at the University of North Carolina at Chapel Hill (Collaboratory) shall identify faculty expertise, technology, and instrumentation, including mass spectrometers, located within institutions of higher education in the State, including the Universities of North Carolina at Chapel Hill and Wilmington, North Carolina State University, North Carolina A&T State University, Duke University, and other public and private institutions, and coordinate these faculty and resources to conduct nontargeted analysis for PFAS, including GenX, at all public water supply surface water intakes and one public water supply well selected by each municipal water system that operates groundwater wells for public drinking water supplies as identified by the Department of Environmental Quality, to establish a water quality baseline for all sampling sites. The Collaboratory, in consultation with the participating institutions of higher education, shall establish a protocol for the baseline testing required by this subsection, as well as a protocol for periodic retesting of the municipal intakes and additional public water supply wells. No later than December 1, 2019, Collaboratory shall report the results of such sampling by identifying chemical families detected at each intake to the Environmental Review Commission, the Department of Environmental Quality, the Department of Health and Human Services, and the United States Environmental Protection Agency.

SECTION 13.1.(h)  Beginning October 1, 2018, the Collaboratory shall report no less than quarterly to the Environmental Review Commission, the Department of Environmental Quality, and the Department of Health and Human Services on all activities conducted pursuant to this section, including any findings and recommendations for any steps the Department of Environmental Quality, the Department of Health and Human Services, the General Assembly, or any other unit of government should take in order to address the impacts of PFAS, including GenX, on surface water and groundwater quality, as well as air quality in the State.

SECTION 13.1.(i)  Five million thirteen thousand dollars ($5,013,000) of the funds appropriated in this act for the 2018‑2019 fiscal year to the Board of Governors of The University of North Carolina shall be allocated to the Collaboratory to manage and implement the requirements of this section, which shall include distribution to the Collaboratory and participating institutions of higher education (i) to cover costs incurred as a result of activities conducted pursuant to this section, (ii) for acquisition or modification of essential scientific instruments, or (iii) for payments of costs for sample collection and analysis, training or hiring of research staff and other personnel, method development activities, and data management, including dissemination of relevant data to stakeholders. No overhead shall be taken from these funds from the participating institutions that receive any portion of these funds. Funds appropriated by this section shall not revert but shall remain available for nonrecurring expenses.

SECTION 13.1.(j)  The Collaboratory should pursue relevant public and private funding opportunities that may be available to address the impacts of PFAS, including GenX, on surface water and groundwater quality, as well as air quality, in order to leverage funds appropriated by this section, or any other funds provided to the Collaboratory, including the Challenge Grant authorized in Section 27.5 of S.L. 2016‑94, as amended by Section 10.4(a) of S.L. 2017‑57.

SECTION 13.1.(k)  In the event that the United States Environmental Protection Agency no longer provides access to its analytical instrumentation at no cost to the State for water quality sampling analysis related to per‑ and poly‑fluoroalkyl substances (PFAS), including the chemical known as "GenX" (CAS registry number 62037‑80‑3 or 13252‑13‑6), or if the Department of Environmental Quality determines that such analysis is not being performed in a sufficiently timely manner, the Collaboratory shall coordinate such analysis in the most cost‑effective manner using relevant faculty expertise, technology, and instrumentation, including mass spectrometers, existing throughout institutions of higher education located throughout the State, until such time as the Department of Environmental Quality is able to perform such analysis with instrumentation acquired pursuant to subsection (q) of this section. The Collaboratory, in consultation with the Department and relevant experts across institutions of higher education in the State, including the Universities of North Carolina at Chapel Hill and Wilmington, North Carolina State University, North Carolina A&T State University, Duke University, and other public and private institutions, shall establish a protocol for delivery of such samples taken by the Department to the entity designated to perform analysis of the samples, chain of custody protocols, and other matters to ensure proper handling and processing of the samples, which protocols shall be subject to approval by the United States Environmental Protection Agency, if such approval is required pursuant to authority delegated from the United States Environmental Protection Agency to the Department to administer federal environmental law.

SECTION 13.1.(l)  The Collaboratory shall identify faculty expertise within institutions of higher education in the State, including the Universities of North Carolina at Chapel Hill and Wilmington, North Carolina State University, North Carolina A&T State University, Duke University, and other public and private institutions, and use technology and instrumentation existing throughout the institutions to conduct the following research (i) develop quantitative models to predict which private wells are most at risk of contamination from the discharge of PFAS, including GenX; (ii) test the performance of relevant technologies in removing such compounds; and (iii) study the air emissions and atmospheric deposition of PFAS, including GenX. In addition, Collaboratory may, using relevant faculty expertise, technology, and instrumentation existing throughout institutions identified, evaluate other research opportunities and conduct such research for improved water quality sampling and analyses techniques, data interpretation, and potential mitigation measures that may be necessary, with respect to the discharge of PFAS, including GenX.

 

FUNDS TO THE DEPARTMENT OF ENVIRONMENTAL QUALITY

SECTION 13.1.(m)  One million three hundred thousand dollars ($1,300,000) of the funds appropriated to the Department of Environmental Quality for the 2016‑2017 fiscal year and allocated for in situ nutrient management by Section 14.13(e) of S.L. 2016‑94, as amended by Section 13.24 of S.L. 2017‑57, is reallocated for the purposes described in subsection (o) of this section.

SECTION 13.1.(n)  Twenty‑five thousand dollars ($25,000) in nonrecurring funds appropriated to the Rural Economic Development Division of the Department of Commerce for the 2017‑2018 fiscal year and provided as a grant‑in‑aid to the Town of Stedman by subdivision (15) of Section 15.8(b) of S.L. 2017‑57 is transferred to the Department of Environmental Quality and allocated for the purposes described in subsection (o) of this section.

SECTION 13.1.(o)  The funds provided to the Department of Environmental Quality by subsections (m) and (n) of this section shall be allocated for the 2018‑2019 fiscal year as follows:

(1)        Six hundred thirteen thousand dollars ($613,000) to the Division of Water Resources for time‑limited positions and operations support of water quality sampling and targeted analysis of samples related to per‑ and poly‑fluoroalkyl substances (PFAS), including the chemical known as "GenX" (CAS registry number 62037‑80‑3 or 13252‑13‑6), and to purchase supplies for operation of the mass spectrometer acquired pursuant to subsection (q) of this section to perform targeted analysis of water samples related to discharges of PFAS, including GenX.

(2)        Two hundred thousand dollars ($200,000) to the Division of Water Resources for time‑limited positions and operations support to address permitting backlogs.

(3)        Two hundred thirty‑two thousand nine hundred fifty dollars ($232,950) to the Division of Air Quality for sampling and analysis of atmospheric deposition of PFAS, including GenX.

(4)        Two hundred seventy‑nine thousand fifty dollars ($279,050) to the Division of Waste Management for sampling and analysis of PFAS, including GenX, in groundwater wells, soil, and sediment.

SECTION 13.1.(p)  Funds reallocated by subsection (o) of this section shall not revert but shall remain available for nonrecurring expenses.

SECTION 13.1.(q)  Five hundred thirty‑seven thousand dollars ($537,000) of the funds appropriated by this act for the 2018‑2019 fiscal year to the Department of Environmental Quality to purchase a triple quadrupole (QqQ) mass spectrometer shall be used to perform targeted analysis of water samples related to discharges of PFAS, including GenX, that are identified by testing conducted pursuant to subsections (f), (g), (h), and (i) of this section. Funds appropriated by this subsection shall not revert but shall remain available for nonrecurring expenses.

 

NPDES PERMIT HOLDERS TO SUBMIT DOCUMENTATION OF POLLUTANTS IDENTIFIED AT TIME OF PERMIT APPLICATION

SECTION 13.1.(r)  Every applicant for a new permit, or permit renewal, of an individual National Pollutant Discharge Elimination System (NPDES) permit to be issued by the Department of Environmental Quality shall submit documentation to the Department in an electronic format as prescribed by the Department that will facilitate immediate public disclosure of the pollutants by certified test method to be included in the person's discharge.

 

REPURPOSE PRE‑REGULATORY LANDFILL FUNDS

SECTION 13.2.  Notwithstanding G.S. 130A‑310.11(b), up to two million dollars ($2,000,000) of the funds credited to the Inactive Hazardous Sites Cleanup Fund under G.S. 105‑187.63 for the assessment and remediation of pre‑1983 landfills shall instead be used by the Department of Environmental Quality's Division of Waste Management to provide a matching grant to Speedway Motorsports, Incorporated for the purpose of remediation activities at the Charlotte Motor Speedway in Cabarrus County. The Division shall provide one dollar ($1.00) for every two non‑State dollars ($2.00) provided in kind or otherwise, up to a maximum of two million dollars ($2,000,000) for the matching grant described in this section.

 

CRAB POT CLEANUP PROGRAM

SECTION 13.3.  The North Carolina Coastal Federation may use up to ten percent (10%) of the funds allocated by this act for a crab pot cleanup program for administrative and overhead costs. The Federation shall report on the total amount of funds used, including amount spent per crab pot recovered and amount paid to third parties utilized in the cleanup program. The Federation shall also provide any recommendations to improve the program, including mechanisms to reuse or repurpose recovered crab pots and to increase efficiency of the program, to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division on or before April 1, 2019.

 

WATER AND SEWER INFRASTRUCTURE GRANTS

SECTION 13.4.  Of the funds appropriated by this act to the Division of Water Infrastructure of the Department of Environmental Quality for water and sewer infrastructure grants, the following sums are allocated to the indicated local governments for the 2018‑2019 fiscal year for various water infrastructure projects:

(1)        Two hundred one thousand dollars ($201,000) to the Town of Richlands for a sewer line replacement project.

(2)        One million dollars ($1,000,000) to the Town of Mount Airy for a water and sewer line extension project.

(3)        One million one hundred twenty‑five thousand dollars ($1,125,000) to the Town of Bath for a sewer system repair project.

(4)        Two hundred fifty thousand dollars ($250,000) to the Town of Trenton for assistance with a water and sewer project.

 

ECOSYSTEM RESTORATION FUND/STATE TREASURER INVESTMENT

SECTION 13.5.  G.S. 147‑69.2(a) reads as rewritten:

"(a)      This section applies to funds held by the State Treasurer to the credit of each of the following:

(17l)     The Ecosystem Restoration Fund.

…."

 

INCREASE AQUATIC WEED CONTROL FUNDING

SECTION 13.6.  G.S. 143‑215.73F(b) reads as rewritten:

"(b)      Uses of Fund. – Revenue in the Fund may only be used for the following purposes:

(2)        For aquatic weed control projects in waters of the State under Article 15 of Chapter 113A of the General Statutes. Funding for aquatic weed control projects is limited to five hundred thousand dollars ($500,000)one million dollars ($1,000,000) in each fiscal year.

…."

 

ACQUIRE PERMANENT DREDGING CAPACITY

SECTION 13.7.(a)  The General Assembly finds that the maintenance of the State's shallow draft navigation channels in a manner that keeps those channels navigable and safe and minimizes their closure or degradation is a vital public purpose and a proper governmental function and that declines in federal funding and dredging activity have significantly and adversely impacted the ability of the federal government to maintain these channels in a timely manner. The resulting deterioration in these channels damages the significant portion of the economy of the State's coastal regions that is dependent on the use of the navigation channels by watercraft. Therefore, it is the policy of the State to support and, when necessary to meet the public purposes set forth in this subsection, to supplement federal maintenance of these navigation channels. For purposes of this section, "shallow draft navigation channel" shall have the definition set forth in G.S. 143‑215.73F(e).

SECTION 13.7.(b)  Notwithstanding subsection (b) of G.S. 143‑215.73F, fifteen million dollars ($15,000,000) from the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund shall be allocated to Dare County (Local Partner) to provide a forgivable loan to a private partner for the purchase of a shallow draft hopper dredge to be used under the direction of the Oregon Inlet Task Force in accordance with the work plan negotiated under subdivision (2) of subsection (e) of this section for maintenance of shallow draft navigation channels located throughout the State. For purposes of this section, Oregon Inlet Task Force refers to the advisory body initially appointed by the Dare County Commission at its January 22, 2013, meeting, as subsequently revised by the Commission. The Local Partner shall delegate by resolution any of its delegable duties under this section to the Task Force. The Task Force shall coordinate the use of the dredge funded by this section to ensure that dredging projects for all shallow draft navigation channels located in waters of the State are completed in an expeditious and timely manner.

SECTION 13.7.(c)  The selection of a private partner shall be subject only to the requirements set forth in this subsection and shall be exempt from Articles 3 and 8 of Chapter 143 of the General Statutes. By August 1, 2018, the Local Partner shall issue a Request for Proposals (RFP) with required guidelines and eligibility criteria to private entities for the forgivable loan funded by this section. An eligible entity responding to the RFP shall submit to the Local Partner an application within 30 days in the manner and accompanied by such information as the Local Partner may require. The Local Partner shall select a private partner no later than 60 days after the deadline for submission of responses to the RFP.

SECTION 13.7.(d)  The forgivable loan agreement between the Local Partner and the private entity receiving the loan (the Loan Parties) shall (i) be for a term of 10 years, renewable for additional 5 year terms at the agreement of the Loan Parties, and (ii) include, at a minimum, the following:

(1)        The dredge for which funding is provided under this section shall be used primarily for maintenance of shallow draft navigation channels located in the State under the direction of the Task Force and based on the work plan as determined in the Memorandum of Agreement described in subdivision (e)(2) of this section.

(2)        To ensure that public funds are used only to carry out public purposes, the private entity shall provide, as service repayment on the forgivable loan, dredging of the State's shallow draft navigation channels at a cost‑savings between the usual and customary rate for dredging services of this type (as determined by the Local Partner in consultation with the United States Army Corps of Engineers and the Department of Environmental Quality) and a lower rate specified for the dredging in the loan agreement. The agreement shall account for cost‑savings that total fifteen million dollars ($15,000,000) over the term of the agreement. The Local Partner shall annually forgive that portion of the loan and any interest accrued on the loan based on the provision of reduced cost dredging services.

(3)        At the option of the Loan Parties, the agreement may provide for use of the dredge to undertake supplemental dredging projects within the State at the usual and customary rate charged for such projects if the Local Partner determines that the dredge has capacity to undertake additional work. The Loan Parties shall prioritize supplemental dredging projects for local governments over supplemental dredging projects for private entities. Supplemental dredging projects authorized by this subdivision shall not be credited toward repayment of the forgivable loan under subdivision (2) of this subsection.

(4)        If the private entity does not provide cost‑savings on dredging services at the State's shallow draft navigation channels in an amount equal to fifteen million dollars ($15,000,000) over the term of the Agreement, the owner of the dredge shall repay the Local Partner within 90 days of the termination date of the Agreement in an amount equal to the remaining service repayment obligation plus any interest accrued on the remaining obligation. The Local Partner shall forward the funds repaid under this subdivision to the Office of State Budget and Management to be credited to the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund.

SECTION 13.7.(e)  The Department of Environmental Quality, the Local Partner, and the private entity shall do all of the following:

(1)        Plan and allocate responsibilities for any permits, authorizations, or certifications necessary for operation of the dredge for the purposes described in this section. The Local Partner and the private entity shall structure ownership and operation of the dredge in a manner that allows work to be conducted to the maximum extent possible under general permits or through amendments to existing individual permits in order to minimize the expense and delay associated with permitting of dredge operations.

(2)        Upon request of the Local Partner, negotiate a Memorandum of Agreement or an amendment to the existing Memorandum of Agreement between the Department and the United States Army Corps of Engineers to incorporate in‑kind contributions through the activities of the dredge acquired under this section into existing work plans for maintenance work on shallow draft navigation channels of the State.

SECTION 13.7.(f)  The Local Partner shall perform all of the administrative functions necessary to implement this section, including implementing the forgivable loan agreement, loan monitoring, establishing service repayment conditions, including necessary documentation for the determination of the cost of dredging services, enforcing the agreement, and all other functions necessary for the execution and enforcement of the agreement.

SECTION 13.7.(g)  The State shall incur no liability for and nothing in this section is intended to waive any sovereign immunity the State may have at common law for any damages or loss associated with the activities authorized by this section. Furthermore, nothing in this section is intended to waive or abrogate the Local Partner's immunity from civil liability in tort.

SECTION 13.7.(h)  The Local Partner shall annually report no later than October 1 on dredging activities undertaken during the prior fiscal year to the Department of Environmental Quality, the Fiscal Research Division, and the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources. The report shall also include detailed information about any default on the terms of the forgivable loan and resulting recoupment or repayment of the State's investment during the fiscal year. The reporting requirement imposed by this subsection shall expire upon the filing of the report covering the fiscal year in which the term of the forgivable loan agreement ends.

 

NUTRIENT MANAGEMENT REGULATORY FRAMEWORK REVISIONS

SECTION 13.8.(a)  Subdivisions (1) and (2) of Section 14.13(c) of S.L. 2016‑94 read as rewritten:

"(1)      With respect to Jordan Lake, the final results of its study and  recommendations for further action (including any statutory or regulatory changes necessary to implement the recommendations) no later than December 31, 2018,2019, with interim updates no later than December 31, 2016, and December 31, 2017.2017, and December 31, 2018.

(2)        With respect to Falls Lake, the final results of its study and recommendations for further action (including any statutory or regulatory changes necessary to implement the recommendations) no later than December 31, 2021, 2023, with interim updates no later than December 31, 2019, and December 31, 2020.2021."

SECTION 13.8.(b)  Section 14.13(d) of S.L. 2016‑94 reads as rewritten:

"SECTION 14.13.(d)  As part of the periodic review and readoption of rules required by G.S. 150B‑21.3A, the Environmental Management Commission shall, based on the study required by subsection (c) of this section and any monitoring or modeling study conducted pursuant to existing regulations as defined in this section, review the following Nutrient Strategies:

(1)        The Falls Water Supply Nutrient Strategy, 15A NCAC 2B .0275 through .0282 and .0315.

(2)        The Jordan Lake Water Supply Nutrient Strategy, 15A NCAC 2B .0263 through .0273 and .0311.

(3)        Any changes to these regulations imposed by acts of the General Assembly.

The schedule set forth in this subsection shall modify the review and readoption schedule set by the Rules Review Commission under G.S. 150B‑21.3A to the extent the schedules conflict. No later than December 31, 2016, the Department of Environmental Quality shall report to the Environmental Review Commission a list of any other rules and any acts of the General Assembly changing the rules identified in this subsection, and the Environmental Management Commission's review shall include the rules identified in this section and in that report. As part of its rule review process, the Environmental Management Commission shall (i) hold public hearings in the upstream and downstream portions of the Falls Lake and Jordan Lake river basins and subbasins and (ii) no later than December 31, 2016, convene a stakeholder working group that represents all classes of users and all geographic parts of the impacted river basins and subbasins and that will provide input to the Environmental Management Commission regarding the revision to the Nutrient Strategies. The Environmental Management Commission shall issue recommendations for revisions of the Nutrient Strategies based on its review and begin rule readoption required by G.S. 150B‑21.3A no later than March 15, 2019. begin rule readoption for the Jordan Lake Water Supply Nutrient Strategy on the earlier of the following: (i) upon receipt of the completed study and final recommendations prepared in response to subsection (c) of this section and any monitoring or modeling study conducted pursuant to existing regulations for nutrient management in Jordan Lake or (ii) December 31, 2020. The Environmental Management Commission shall begin rule readoption for the Falls Water Supply Nutrient Strategy on the earlier of the following: (i) upon receipt of the completed study and final recommendations prepared in response to subsection (c) of this section and any monitoring or modeling study conducted pursuant to existing regulations for nutrient management in Falls Lake or (ii) December 31, 2024. For purposes of the G.S. 150B‑21.3A readoption process, the Nutrient Strategies shall be considered "necessary with substantive public interest."

SECTION 13.8.(c)  Section 14.13(h) of S.L. 2016‑94 reads as rewritten:

"SECTION 14.13.(h)  The rules described below shall not take effect and are subject to the review and readoption required by subsection (d) of this section:

(1)        With respect to the Jordan Lake rules, as defined by subdivisions (2) and (3) of subsection (d) of this section, any rules with effective dates between the effective date of this act and October 15, 2019.after July 1, 2016. Rules delayed under this subdivision will have the effective date specified in the rules as readopted under subsection (d) of this section.

(2)        With respect to the Falls Lake rules, as defined by subdivisions (1) and (3) of subsection (d) of this section, any rules with effective dates between the effective date of this act and October 15, 2022.2022, provided that provisions of the Falls Lake rules which establish Stage I reduction actions and goals shall remain in effect until the Falls Lake rules, as modified under subsection (d) of this section, become effective. The due dates for reduction actions and goals set to be completed by December 31, 2020, and the reduction actions and goals identified as Stage II in the Falls Lake rules are delayed until the Falls Lake rules, as modified under subsection (d) of this section, become effective."

SECTION 13.8.(d)  Notwithstanding Section 27.5 of S.L. 2016‑94, as amended by Section 10.4 of S.L. 2017‑57, the North Carolina Policy Collaboratory is authorized to use for the purposes set forth in this subsection no more than one million dollars ($1,000,000) for the 2018‑2019 fiscal year of the funds appropriated for the 2016‑2017 fiscal year to the Office of State Budget and Management, Special Appropriations, and allocated to the Board of Trustees of the University of North Carolina at Chapel Hill for use as matching funds by the Collaboratory. Notwithstanding Section 27.5 of S.L. 2016‑94, as amended by Section 10.4 of S.L. 2017‑57, no match is required for funds reallocated by this subsection.

The Collaboratory shall use these funds to create an updated quantitative model of Jordan Lake and the Haw River subbasin of the Cape Fear River based on the nutrient management study funded by Section 14.13(c) of S.L. 2016‑94. The funds may also be utilized for personnel costs, data acquisition, and software licensing related to the model update project funded by this subsection, but the University of North Carolina at Chapel Hill shall not charge for overhead costs against the funds reallocated by this subsection. Funds reallocated by this subsection shall not revert but shall continue to be available to the Collaboratory for the purposes described in this subsection.

SECTION 13.8.(e)  In the report required by Section 14.13(c) of S.L. 2016‑94, as amended by subsection (a) of this section, the Collaboratory shall present the results of the model authorized by subsection (d) of this section, along with (i) recommendations for revisions or additions to the Jordan Lake Water Supply Nutrient Strategy and (ii) identification and analysis of issues and areas identified by its study and model where no scientific consensus exists or where data is unavailable or incomplete.

 

DEQ GRANT‑IN‑AID

SECTION 13.9.(a)  Of the funds appropriated in this act to the Department of Environmental Quality, Division of Water Resources, the sum of five million dollars ($5,000,000) shall be used to provide a grant‑in‑aid to Resource Institute, Inc., for the purpose of working with coastal local governments and engineering firms to explore opportunities for the development and implementation of emerging techniques that can extend the useful life of beach nourishment projects.

SECTION 13.9.(b)  On or before October 1, 2019, Resource Institute, Inc., shall submit a report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division. The report shall contain at least all of the following:

(1)        A list of participating local governments and engineering firms and other partners in the project.

(2)        A summary of the emerging techniques developed and implemented as a result of the efforts of the collaboration between local governments, engineering firms, and Resource Institute, Inc.

(3)        Documentation of the impact on the resilience of beach nourishment projects and the number of beach nourishment projects assisted.

 

COASTAL STORM DAMAGE MITIGATION FUND

SECTION 13.10.(a)  Funds appropriated by this act for the Coastal Storm Damage Mitigation Fund for the 2018‑2019 fiscal year shall be allocated to a locally sponsored project that is (i) derived from a regional management plan and formal interlocal agreement and (ii) authorized under a multidecade, programmatic permit authorization issued to the local sponsor.

SECTION 13.10.(b)  G.S. 143‑215.73M is amended by adding a new subsection to read:

"(e)      Report. – The Department shall report annually no later than October 1 regarding projects funded under this section to the Fiscal Research Division and the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources. The report shall include project type, project location, brief project description, entity receiving the funding, and amount of funding provided."

 

VOLKSWAGEN SETTLEMENT FUNDS

SECTION 13.11.(a)  Section 13.2 of S.L. 2017‑57 reads as rewritten:

"SECTION 13.2.(a)  In developing the "Beneficiary Mitigation Plan" (Plan) as mandated in the procedures for distribution of the State's share of the environmental mitigation trust established in the consent decree resolving the case In Re: Volkswagen "Clean Diesel" Marketing, Sales Practices, and Products Liability Litigation, Civil Case No. 3:15‑md‑02672 in the United States District Court for the Northern District of California, the agencyCalifornia (Trust), the Department of Environmental Quality (DEQ) or any other agency, department, office, or division designated by the Governor as the lead agency under the procedures set forth in the trust agreement shall consult with the Department of Transportation, the Department of Commerce, and other interested State agencies in the formulation of the Plan.

"SECTION 13.2.(b)  As set forth in G.S. 114‑2.4A(f), noNo funds may be expended under the Plan until the lead agency DEQ, or any other agency, department, office, or division designated by the Governor as the lead agency, has submitted the Plan to the Joint Legislative Commission on Governmental Operations, the chairs of the House Appropriations Committee, the chairs of the Senate Appropriations/Base Budget Committee, and the Fiscal Research Division and the General Assembly has appropriated the funds. The lead agency designated by the Governor shall revise and resubmit the Plan to the trustee following the procedures set forth in the trust agreement to be consistent with the appropriation.DEQ, or any other agency, department, office, or division designated by the Governor as the lead agency, is prohibited from directing payments of funds from the Trust to any third party unless the funds received from the Trust are deposited in the State Treasury and appropriated by an act of the General Assembly. Upon receipt of funds from the Trust in accordance with the Plan and funding requests submitted to the Trustee by DEQ, and the appropriation of the funds by an act of the General Assembly granting the Department legal authority to direct payment of funds, the Department may direct those funds in the manner approved by the Trustee consistent with the appropriation, the Plan, and the funding request."

SECTION 13.11.(b)  The Volkswagen Litigation Environmental Mitigation Fund is established as a special fund in the State Treasury. The purpose of the Volkswagen Litigation Environmental Mitigation Fund is to receive funds received by the State as a beneficiary of the environmental mitigation trust fund established in the consent decree resolving the case In Re: Volkswagen "Clean Diesel" Marketing, Sales Practices, and Products Liability Litigation, Civil Case No. 3:15‑md‑02672 in the United States District Court for the Northern District of California (Trust).

SECTION 13.11.(c)  The State Controller shall reserve to the Volkswagen Litigation Environmental Mitigation Fund funds received from the Trust. Funds reserved in the Volkswagen Litigation Environmental Mitigation Fund do not constitute an "appropriation made by law," as that phrase is used in Section 7(1) of Article V of the North Carolina Constitution.

 

SUBPART XIII‑A. WILDLIFE RESOURCES COMMISSION

 

OUTDOOR HERITAGE COUNCIL REVISIONS

SECTION 13A.1.(a)  G.S. 143B‑344.62 reads as rewritten:

"§ 143B‑344.62.  Outdoor heritage advisory council.

(c)        The terms of the initial members of the Council shall commence October 1, 2015. Of the Governor's initial appointments, one member shall be designated to serve a term of three years, one member shall be designated to serve a term of two years, and one member shall be designated to serve a term of one year. Of the initial appointments by the President Pro Tempore of the Senate, one member shall be designated to serve a term of three years, one member shall be designated to serve a term of two years, and one member shall be designated to serve a term of one year. Of the initial appointments by the Speaker of the House of Representatives, one member shall be designated to serve a term of three years, one member shall be designated to serve a term of two years, and one member shall be designated to serve a term of one year. The members appointed by the Commissioner of Agriculture and the chair of the Wildlife Resources Commission shall each serve an initial term of four years. After the initial appointees' terms have expired, all members shall be appointed for a term of four years. No member shall serve more than two successive terms.

Any appointment to fill a vacancy on the Council created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term.

(d)       The initial chair of the Council shall be designated by the Governor from the Council members. The initial chair shall hold this office for not more than one year. Subsequent chairs shall be elected by the Council for terms of two years.

(e)        The Council shall meet quarterly and at other times at the call of the chair. A majority of members of the Council shall constitute a quorum.

(f)        Council members shall be reimbursed for expenses incurred in the performance of their duties in accordance with G.S. 138‑5 and G.S. 138‑6, as applicable. The reimbursements authorized by this subsection may be provided from the North Carolina Outdoor Heritage Trust Fund for Youth Outdoor Heritage Promotion.

(g)        The Executive Director of the Wildlife Resources Commission shall provide clerical and other assistance as needed.needed, including, but not limited to, office space, transportation support, and support for equipment and information technology needs of the Council.

(h)        The Council shall be exempt from Article 3 of Chapter 143 of the General Statutes but may use the services of the Department of Administration in procuring goods and services for the Council."

SECTION 13A.1.(b)  Part 36 of Article 7 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B‑344.64.  Outdoor Heritage Advisory Council – report.

On or before December 1, 2019, and at least annually thereafter, the Council shall submit a report to the chairs of the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division regarding its activities, initiatives, partnerships, and use of donated and appropriated funds."

SECTION 13A.1.(c)  The Wildlife Resources Commission shall revise its plan for implementation of the North Carolina Outdoor Heritage Trust Fund for Youth Outdoor Heritage Promotion to provide that check‑off donations by persons paying for transactions processed through the Commission, including, but not limited to, hunting and fishing licenses, or paying outdoor access fees issued by other organizations may include an option for a donation of any amount.

 

PART XIV. DEPARTMENT OF NATURAL AND CULTURAL RESOURCES

 

CLEAN WATER MANAGEMENT TRUST FUND

SECTION 14.1.  From the funds appropriated in this act to the Department of Natural and Cultural Resources for the Clean Water Management Trust Fund for the 2018‑2019 fiscal year, the Department shall make the following allocations:

(1)        Up to five hundred thousand dollars ($500,000) to the Southwestern North Carolina Resource Conservation & Development Council for stream restoration and the implementation of best management practices on agricultural activities to reduce pollutant loading in a portion of the watershed of Jonathans Creek in Haywood County.

(2)        Up to one million dollars ($1,000,000) to Appalachian State University to reduce sediment loading in Payne Branch impacting the University's water supply.

 

PART XV. DEPARTMENT OF COMMERCE

 

ECONOMIC DEVELOPMENT MODIFICATIONS

 

MAJOR MANUFACTURING AND TECHNOLOGY Headquarters INCENTIVES and JDIG Changes

SECTION 15.1.(a)  G.S. 143B‑437.51 reads as rewritten:

"§ 143B‑437.51.  Definitions.

The following definitions apply in this Part:

(5)        Eligible position. – A position created by a business and filled by a new full‑time employee in this State during the base period. For purposes of high‑yield projects and transformative projects, (i) positions created in the year the business achieves the minimum requirements set forth in this section may be considered eligible positions even if created outside the base period and (ii) in a year other than during the base period, an eligible position must be filled for at least 30 weeks of the applicable grant year.

(5a)      Expansion position. – A position created by a business and filled by a new full‑time employee in this State for a transformative project in any year in which the business receives the enhanced percentage of the withholdings of eligible positions pursuant to G.S. 143B‑437.56(a1).

(6)        Full‑time employee. – A person who is employed for consideration for at least 35 hours a week, whose wages are subject to withholding under Article 4A of Chapter 105 of the General Statutes, who is not a worker with an H‑1B visa or with H‑1B status, and who is determined by the Committee to be employed in a permanent position according to criteria it develops in consultation with the Attorney General. The term does not include any person who works as an independent contractor or on a consulting basis for the business.

(9a)      Transformative project. – A project for which the agreement requires that a business invest at least four one billion dollars ($4,000,000,000)($1,000,000,000) in private funds and create at least 5,0003,000 eligible positions.

(10)      Withholdings. – The amount withheld by a business from the wages of employees in eligible positions and, if applicable, expansion positions under Article 4A of Chapter 105 of the General Statutes."

SECTION 15.1.(b)  G.S. 143B‑437.52(c) reads as rewritten:

"(c)      Award Limitations. – The following limitations apply to grants awarded under this Part:

(1)        Maximum liability. – The maximum amount of total annual liability for grants awarded in any single calendar year under this Part, including amounts transferred to the Utility Account pursuant to G.S. 143B‑437.61, is twenty million dollars ($20,000,000)thirty‑five million dollars ($35,000,000) for a year in which no grants are awarded for a high‑yield project and is thirty‑five million dollars ($35,000,000)forty‑five million dollars ($45,000,000) for a year in which a grant is awarded for a high‑yield project. No agreement may be entered into that, when considered together with other existing agreements governing grants awarded during a single calendar year, could cause the State's potential total annual liability for grants awarded in a single calendar year to exceed the applicable amount. The Department shall make every effort to ensure that the average percentage of withholdings of eligible positions for grants awarded under this Part does not exceed the average of the range provided in G.S. 143B‑437.56(a). The limitation in this subdivision does not apply to transformative projects.

(2)        Semiannual commitment limitations. – Of the amount authorized in subdivision (1) of this subsection, no more than fifty percent (50%), excluding roll‑over amounts, may be awarded in any single calendar semiannual period. A roll‑over amount is any amount from a previous semiannual period in the same calendar year that was not awarded as a grant. The limitation of this subdivision does not apply to a grant awarded to a high‑yield or transformative project.

(3)        Geographic limitations. – Of the amount authorized in subdivision (1) of this subsection, no more than twenty million dollars ($20,000,000) may be used for projects located in counties with total employment of 500,000 or more and five million dollars ($5,000,000) is reserved for projects located in counties with an annual ranking pursuant to G.S. 143B‑437.08 in the highest fifty percent (50%) of the remaining counties. In measuring total employment, the Secretary shall use the latest available data published by the Quarterly Census of Employment and Wages program. The limitations of this subdivision do not apply to a grant awarded to a high‑yield or transformative project."

SECTION 15.1.(c)  G.S. 143B‑437.55(b) reads as rewritten:

"(b)      Application Fee. – When filing an application under this section, the business must pay the Committee a fee of (i) ten thousand dollars ($10,000).($10,000) if the project is either a high‑yield project or transformative project, regardless of location in the State, or is located in a development tier three area, (ii) five thousand dollars ($5,000) if the project is located in a development tier two area, or (iii) one thousand dollars ($1,000) if the project is located in a development tier one area. 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. Within 30 days of receipt of an application under this section but prior to any award being made, the Department of Commerce shall notify each governing body of an area where a submitted application proposes locating a project of the information listed in this subsection, provided that the governing body agrees, in writing, to any confidentiality requirements imposed by the Department under G.S. 132‑6(d). The information required by this subsection includes all of the following:

…."

SECTION 15.1.(d)  G.S. 143B‑437.56 reads as rewritten:

"§ 143B‑437.56.  Calculation of minimum and maximum grants; factors considered.

(a1)      Notwithstanding the percentage specified by subsection (a) of this section, if the amount of the grant awarded for a high‑yield or transformative project shall be enhanced as provided in this subsection if the applicable conditions of this subsection are met. A business receiving an enhanced percentage of withholdings under this subsection that fails to maintain the minimum job creation requirement or meet all terms of the agreement will be disqualified from receiving the enhanced percentage and will have the applicable percentage set forth in subsection (a) of this section applied in the year in which the failure occurs and all remaining years of the grant term.

(1)        If the project is a high‑yield or transformative project, the business has met the investment and job creation requirements, and, for three consecutive years, the business has met all terms of the agreement, the amount of the grant awarded shall be no more than one hundred percent (100%) of the withholdings of eligible positions for each consecutive year the business maintains the minimum job creation requirement and meets all terms of the agreement. A business receiving an enhanced percentage of the withholdings of eligible positions under this subsection that fails to maintain the minimum job creation requirement or meet all terms of the agreement will be disqualified from receiving the enhanced percentage and will have the applicable percentage set forth in subsection (a) of this section applied in the year in which the failure occurs and all remaining years of the grant term.Ninety percent (90%) of the annual grant approved for disbursement shall be payable to the business, and ten percent (10%) shall be payable to the Utility Account pursuant to G.S. 143B‑437.61.

(2)        If the project is a transformative project and the business has met the investment and job creation requirements and all terms of the agreement, the amount of the grant awarded shall be no more than one hundred percent (100%) of the withholdings of eligible and expansion positions for each year the business maintains the minimum job creation requirement and meets all terms of the agreement. Ninety percent (90%) of the annual grant approved for disbursement shall be payable to the business, and ten percent (10%) shall be payable to the Utility Account pursuant to G.S. 143B‑437.61.

(b)        The term of the grant shall not exceed the duration listed in this subsection. The first grant payment must be made within six years after the date on which the grant was awarded. The For projects other than transformative projects, the number of years in the base period for which grant payments may be made shall not exceed five years. For transformative projects, the number of years in the base period for which grant payments may be made shall not exceed 10 years. Maximum durations are as follows:

(1a)      For transformative projects in which the business receives the enhanced percentage pursuant to subsection (a1) of this section, 25 the base period plus 30 years starting with the first year a grant payment is made. If a business is disqualified from the enhanced percentage in one of the first 12 years, the term of the grant shall not exceed 12 years starting with the first year a grant payment is made. If a business is disqualified from receiving the enhanced percentage after the first 12 years, the term of the grant ends in the year the disqualification occurs.

(c)        The Except as provided in subsection (a1) of this section, the grant may be based only on eligible positions created during the base period.

(f)        The For projects other than transformative projects, the amount of a grant associated with any specific eligible position, including any amount transferred to the Utility Account pursuant to G.S. 143B‑437.61, may not exceed six thousand five hundred dollars ($6,500) in any year."

SECTION 15.1.(e)  G.S. 143B‑437.57(a) reads as rewritten:

"(a)      Terms. – Each community economic development agreement shall include at least the following:

(1)        A detailed description of the proposed project that will result in job creation and the number of new employees to be hired during the base period.

(3)        The number of eligible positions that are subjects of the grant and a description of those positions and the location of those positions.

(6)        A method for the business to report annually to the Committee the number of eligible positions and, if applicable, expansion positions for which the grant is to be made.

(11)      A provision that requires the business to maintain employment levels in this State at the greater of the level of employment on the date of the application or the level of employment on the date of the award.

(14)      A provision setting out any allowed variation in the terms of the agreement that will not subject the business to grant reduction, amendment, or termination of the agreement under G.S. 143B‑437.59.

(14a)    If applicable, a provision for transformative projects setting out any allowed variation in the terms of the agreement that will result in a grant increase to the business for expansion positions. Grant increases for expansion positions may not include workers employed in North Carolina who fill expansion positions with the business as a result of a merger or acquisition occurring during the term of the agreement.

(23)      A For projects other than transformative projects, a provision stating that the amount of a grant associated with any specific eligible position, including any amount transferred to the Utility Account pursuant to G.S. 143B‑437.61, may not exceed six thousand five hundred dollars ($6,500) in any year.

…."

SECTION 15.1.(f)  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 Department of Revenue 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 Department of Revenue 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.returns to the Department of Revenue. The Committee may inspect the information submitted to the Department of Revenue pursuant to this section at the Department of Revenue for purposes of award verification and calculation. 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 Department of Revenue a fee of the greater of two thousand five hundred dollars ($2,500) or three one‑hundredths of one percent (.03%) of an amount equal to the grant less the maximum amount to be transferred pursuant to G.S. 143B‑437.61. 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."

SECTION 15.1.(g)  Subsections (a), (b), and (d) of this section are effective when they become law and apply to grants awarded on or after that date. Subsection (c) of this section is effective when it becomes law and applies to applications received on or after that date. Subsection (e) of this section is effective when it becomes law and applies to agreements executed on or after that date. The remainder of this section is effective when it becomes law.

 

ELIMINATE ADJUSTMENT FACTORS TO DEVELOPMENT TIER AREAS

SECTION 15.2.(a)  G.S. 143B‑437.08 reads as rewritten:

"§ 143B‑437.08.  Development tier designation.

(c)        Annual Ranking. – After computing the development factor as provided in this section and making the adjustments required in this section, the Secretary of Commerce shall rank all the counties within the State according to their development factor from highest to lowest. The Secretary shall then identify all the areas of the State by development tier and publish this information. A development tier designation is effective only for the calendar year following the designation.

(e)        Adjustment for Certain Small Counties. – Regardless of the actual development factor, any county that has a population of less than 12,000 shall automatically be ranked one of the 40 highest counties, any county that has a population of less than 50,000 shall automatically be ranked one of the 80 highest counties, and any county that has a population of less than 50,000 and more than nineteen percent (19%) of its population below the federal poverty level according to the most recent federal decennial census shall automatically be ranked one of the 40 highest counties.

(f)        Adjustment for Development Tier One Areas. – Regardless of the actual development factor, a county designated as a development tier one area shall automatically be ranked one of the 40 highest counties until it has been a development tier one area for at least two consecutive years.

…."

SECTION 15.2.(b)  G.S. 143B‑437.01(a1) reads as rewritten:

"(a1)    Definitions. – The following definitions apply in this section:

(4)        Economically distressed county. – A county that is defined as a development tier one or two area under G.S. 143B‑437.08 after the adjustments of that section are applied.G.S. 143B‑437.08.

…."

SECTION 15.2.(c)  G.S. 143B‑472.127 reads as rewritten:

"§ 143B‑472.127.  Programs administered.

(a)        The Rural Economic Development Division shall be responsible for administering the program whereby economic development grants or loans are awarded by the Rural Infrastructure Authority as provided in G.S. 143B‑472.128 to local government units. The Rural Infrastructure Authority shall, in awarding economic development grants or loans under the provisions of this subsection, give priority to local government units of the counties that have one of the 80 highest rankings under G.S. 143B‑437.08 after the adjustment of that section.G.S. 143B‑437.08. The funds available for grants or loans under this program may be used as follows:

…."

SECTION 15.2.(d)  G.S. 143B‑472.128 reads as rewritten:

"§ 143B‑472.128.  Rural Infrastructure Authority created; powers.

(j)         Powers and Duties. – The Authority has the following powers and duties:

(2)        To award grants or loans as provided in G.S. 143B‑472.127. In awarding grants or loans under G.S. 143B‑472.127(a), priority shall be given to local government units of the counties that have one of the 80 highest rankings under G.S. 143B‑437.08 after the adjustment of that section.G.S. 143B‑437.08.

…."

SECTION 15.2.(e)  G.S. 143B‑437.04 reads as rewritten:

"§ 143B‑437.04.  Community development block grants.

(a)        The Department of Commerce shall adopt guidelines for the awarding of Community Development Block Grants to ensure that:

(1)        No local match is required for grants awarded for projects located in counties that have one of the 25 highest rankings under G.S. 143B‑437.08 or counties that have a population of less than 50,000 and more than nineteen percent (19%) of its population below the federal poverty level according to the most recent federal decennial census.G.S. 143B‑437.08.

…."

SECTION 15.2.(f)  G.S. 143B‑437.07 reads as rewritten:

"§ 143B‑437.07.  Economic development grant reporting.

(a)        Report. – The Department of Commerce must shall publish on or before October 1 of each year the information required by this subsection, itemized by business entity, for each business or joint private venture to which the State has, in whole or in part, granted one or more economic development incentives during the relevant time period. The relevant time period ends June 30 preceding the publication date of this subsection and begins (i) for incentives not awarded under Part 2G of this Article with the 2007 calendar year and (ii) for incentives awarded under Part 2G of this Article with the 2002 calendar year. The information in the report must shall include all of the following:

(3)        The name, mailing address, telephone number, and Web site of the business recipient, or recipients if a joint venture, and the physical location of the site receiving the incentive. If the physical location of the site is undecided, then the name of the county in which the site will be located. The information regarding the physical location must shall indicate whether the physical location is a new or expanded facility.

(b)        Online Posting/Written Submission. – The Department of Commerce must shall post on its Internet Web site a summary of the report compiled in subsection (a) of this section. The summary report must shall include the information required by subdivisions (2), (9), (11), and (12) of subsection (a) of this section. By October 1 of each year, the Department of Commerce must shall submit the written report required by subsection (a) of this section to the Joint Legislative Commission on Governmental Operations, the Revenue Laws Study Committee, the Senate Appropriations Committee on Natural and Economic Resources, the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, and the Fiscal Research Division of the General Assembly.

(c)        Economic Development Incentive. – An economic development incentive includes any grant from the following programs: Job Development Investment Grant Program; the Job Maintenance and Capital Development Fund; One North Carolina Fund; and the Utility Account. The State also incents economic development through the use of tax expenditures in the form of tax credits and refunds. The Department of Revenue must shall report annually on these statutory economic development incentives, as required under G.S. 105‑256.

(d)       County Economic Growth Assessments and Assistance. – Beginning in 2018 and every five years thereafter, the Department of Commerce shall determine the statewide value for each of the development factors listed in G.S. 143B‑437.08. The Department shall annually (i) compare the latest determined statewide values to each county's development factors, (ii) report to each county any areas of performance below that of the statewide value, and (iii) offer assistance to each county, upon request, regarding how to improve performance relative to the economic indicator identified. The Department shall collate the reports and submit them on or before April 1 of each year to the Joint Legislative Economic Development and Global Engagement Oversight Committee with a comparison of each county's performance for the previous year. The collated report shall also include a list of each county requesting assistance and the Department's response to the request."

SECTION 15.2.(g)  Subsections (a) through (e) of this section are effective when they become law and apply to economic development awards made and related determinations occurring on or after January 1, 2019. The remainder of this section is effective when it becomes law.

 

REPEAL LEGACY TRANSFORMATIVE PROJECT PROVISIONS

SECTION 15.3.(a)  Subsections (d) and (e) of Section 15.15A of S.L. 2017‑57 are repealed.

SECTION 15.3.(b)  This section is effective when it becomes law.

 

MODIFY FILM GRANT FUND

SECTION 15.4.(a)  G.S. 143B‑437.02A reads as rewritten:

"§ 143B‑437.02A.  The Film and Entertainment Grant Fund.

(a)        Creation and Purpose of Fund. – There is created in the Department of Commerce a special, nonreverting account to be known as the Film and Entertainment Grant Fund to provide funds to encourage the production of motion pictures, television shows, movies for television, productions intended for on‑line distribution, and commercials and to develop the filmmaking industry within the State. The Department of Commerce shall adopt guidelines providing for the administration of the program. Those guidelines may provide for the Secretary to award the grant proceeds over a period of time, not to exceed three years. Those guidelines shall include the following provisions, which shall apply to each grant from the account:

(1)        The funds are reserved for a production on which the production company has qualifying expenses of at least the following:

a.         For a feature‑length film, five million dollars ($5,000,000).film:

1.         Three million dollars ($3,000,000), if for theatrical viewing.

2.         One million dollars ($1,000,000), if a movie for television.

b.         For a television series, one million dollars ($1,000,000) per episode.

c.         For a commercial for theatrical or television viewing or on‑line distribution, two hundred fifty thousand dollars ($250,000).

(2)        The funds are not used to provide a grant in excess of any of the following:

a.         An amount more than twenty‑five percent (25%) of the qualifying expenses for the production.

b.         An amount more than five seven million dollars ($5,000,000)($7,000,000) for a feature‑length film, more than nine twelve million dollars ($9,000,000)($12,000,000) for a single season of a television series, or two hundred fifty thousand dollars ($250,000) for a commercial for theatrical or television viewing or on‑line distribution.

…."

SECTION 15.4.(b)  This section is effective when it becomes law and applies to grants for productions awarded on or after that date.

 

TRANSFER CERTAIN COMMERCE FUNCTIONS TO EDPNC

SECTION 15.5.(a)  The Department of Commerce shall enter into negotiations with the nonprofit corporation with which it contracts pursuant to G.S. 143B‑431.01 to provide international investment recruiting resources to market and advertise the State as a business destination.

SECTION 15.5.(b)  G.S. 143B‑431.01(a) reads as rewritten:

"§ 143B‑431.01.  Department of Commerce – contracting of functions.

(a)        Purpose. – The purpose of this section is to establish a framework whereby the Department of Commerce may contract with a North Carolina nonprofit corporation to assist the Department in fostering and retaining jobs and business development, international investment recruiting, international trade, marketing, and travel and tourism. It is the intent of the General Assembly that the Department develop a plan to work cooperatively with a nonprofit corporation for these purposes while safeguarding programmatic transparency and accountability as well as the fiscal integrity of economic development programs of the State."

SECTION 15.5.(c)  G.S. 143B‑431.01(e) is amended by adding a new subdivision to read:

"(17)    A provision requiring the nonprofit to provide international investment recruiting resources to market and advertise the State as a business destination."

SECTION 15.5.(d)  G.S. 143B‑432.2 is repealed.

SECTION 15.5.(e)  G.S. 126‑5(c1)(30a) is repealed.

SECTION 15.5.(f)  Of the nonrecurring funds appropriated for the International Recruiting Coordination Office (IRCO) in the 2016‑2017 fiscal year, at least six hundred twenty‑five thousand dollars ($625,000) shall be transferred to the nonprofit corporation described in G.S. 143B‑431.01(b), of which at least five hundred seventy‑five thousand dollars ($575,000) shall be used by the nonprofit corporation for international investment recruiting and at least fifty thousand dollars ($50,000) shall be used by the nonprofit corporation for outdoor recreation recruitment. Any funds appropriated for the IRCO that remain after the transfer described in this subsection shall revert to the General Fund at the end of the 2017‑2018 fiscal year.

SECTION 15.5.(g)  Subsection (c) of this section applies to contracts renewed or entered into on or after the effective date of this act. Subsection (f) of this section becomes effective June 30, 2018.

 

UTILITY ACCOUNT TRANSFERS

SECTION 15.6.(a)  Notwithstanding G.S. 143B‑437.01, the sum of five million dollars ($5,000,000) transferred in this act from the Industrial Development Fund Utility Account to the Coastal Storm Damage Mitigation Fund shall be used for the purposes provided in G.S. 143‑215.73M.

SECTION 15.6.(b)  Notwithstanding G.S. 143B‑437.01, the Department of Commerce shall use two million dollars ($2,000,000) from the Industrial Development Fund Utility Account to provide a grant‑in‑aid to support the development of the lift fan repair and maintenance facility at the Cherry Point Marine Corps Air Station.

 

CERTIFIED RETIREMENT COMMUNITY CHANGES

SECTION 15.7.(a)  G.S. 143B‑437.100(d) reads as rewritten:

"(d)      Certification. – The Department shall establish criteria for qualifying as a North Carolina certified retirement community. To be eligible to obtain certification as a North Carolina certified retirement community, the community shall meet each of the following requirements:

(1)        Be located within 3050 miles of a hospital and of emergency medical services.

(4)        Remit an application annual fee to the Department Department, or the nonprofit corporation with which the Department contracts pursuant to G.S. 143B‑431.01, equal to the greater lesser of ten three thousand dollars ($10,000)($3,000) or the product of fifty cents (50¢) multiplied by the population of the community, as determined by the most recent census.

…."

SECTION 15.7.(b)  G.S. 143B‑437.101(b) reads as rewritten:

"(b)      Expiration. – A community's certification under this section expires on the fifth anniversary of the date the initial certification is issued. To be considered for recertification by the Department, an applicant community shall submit the following:

(1)        A completed new application in accordance with the requirements of this Part.

(2)        Data demonstrating the success or failure of the community's efforts to market and promote itself as a desirable location for retirees and potential retirees.

(3)        The annual fee required by G.S. 143B‑437.100(d)(4)."

SECTION 15.7.(c)  This section becomes effective July 1, 2018, and applies to applications and recertifications submitted on or after that date.

 

DOWNTOWN REVITALIZATION AND ECONOMIC DEVELOPMENT GRANTS

SECTION 15.8.(a)  Of the funds appropriated in this act to the Rural Economic Development Division of the Department of Commerce, the Rural Economic Development Division shall provide grants‑in‑aid for downtown revitalization projects as follows:

 

City of Asheboro                                                                                                 $250,000

City of Kings Mountain                                                                                      $100,000

City of Reidsville                                                                                                  $50,000

City of Shelby                                                                                                     $100,000

Town of Angier                                                                                                     $25,000

Town of Bailey                                                                                                   $100,000

Town of Cedar Point                                                                                           $700,000

Town of Chadbourn                                                                                              $55,000

Town of Connelly Springs                                                                                    $37,000

Town of Drexel                                                                                                     $41,500

Town of Eureka                                                                                                     $25,000

Town of Faith                                                                                                        $49,500

Town of Four Oaks                                                                                               $25,000

Town of Fremont                                                                                                $125,000

Town of Glen Alpine                                                                                            $34,700

Town of High Shoals                                                                                            $50,000

Town of Hildebran                                                                                                $44,000

Town of Hookerton                                                                                               $25,000

Town of Indian Trail                                                                                             $50,000

Town of Jamestown                                                                                              $50,000

Town of Lansing                                                                                                   $25,000

Town of Liberty                                                                                                    $70,000

Town of Long View                                                                                              $16,600

Town of Louisburg                                                                                              $150,000

Town of Oak Ridge                                                                                               $50,000

Town of Pikeville                                                                                                  $50,000

Town of Pilot Mountain                                                                                        $50,000

Town of Pleasant Garden                                                                                      $50,000

Town of Plymouth                                                                                                $50,000

Town of Rhodhiss                                                                                                 $16,400

Town of Rutherford College                                                                                 $30,900

Town of Seagrove                                                                                               $100,000

Town of Sedalia                                                                                                    $25,000

Town of Seven Springs                                                                                         $25,000

Town of Smithfield                                                                                               $25,000

Town of Snow Hill                                                                                                $25,000

Town of St. Pauls                                                                                                  $28,500

Town of Stallings                                                                                                  $50,000

Town of Summerfield                                                                                           $50,000

Town of Tabor City                                                                                              $35,000

Town of Tobaccoville                                                                                           $50,000

Town of Walstonburg                                                                                           $25,000

Town of Wendell                                                                                                  $50,000

Town of Whitsett                                                                                                  $25,000

Town of Wilson's Mills                                                                                         $25,000

Town of Zebulon                                                                                                   $50,000

 

Total                                                                                                                 $3,084,100

 

SECTION 15.8.(b)  Of the funds appropriated in this act to the Rural Economic Development Division of the Department of Commerce, the Rural Economic Development Division shall provide grants‑in‑aid for economic development projects as follows:

 

Town of Kernersville                                                                                            $75,000

Village of Clemmons                                                                                            $75,000

Graham County                                                                                                     $25,000

Pitt County                                                                                                          $250,000

 

Total                                                                                                                    $425,000

 

SUBPART XV‑A. COMMERCE – STATE AID [RESERVED]

 

PART XVI. DEPARTMENT OF PUBLIC SAFETY

 

GRANTS FOR LAW ENFORCEMENT CAMERAS/Statewide Sex Offender Registry/SAMARCAND TRAINING SIMULATOR UPGRADES

SECTION 16.1.(a)  Section 16.7 of S.L. 2017‑57 reads as rewritten:

"SECTION 16.7.(a)  Funds appropriated in S.L. 2015‑241 and S.L. 2017‑57 to the Department of Public Safety for body‑worn camera grants shall not revert but shall be used to as follows:

(1)        Seventy‑five thousand dollars ($75,000) to Samarcand Training Academy for upgrades to its training simulator to support school safety.

(2)        Five hundred thousand dollars ($500,000) to the North Carolina Sheriffs' Association to be used to provide grants to implement a statewide sex offender database that connects all 100 counties and allows for robust data entry and retrieval at the local level.

(3)        The remaining funds to provide matching grants to local and county law enforcement agencies in counties with a population of less than 75,000 according to the latest federal decennial census to purchase and place into service body‑worn or dashboard video cameras, as defined by G.S. 132‑1.4A, and for training and related expenses. These grant funds shall be administered by the Governor's Crime Commission, which shall develop guidelines and procedures for the administration and distribution of grants to those agencies. These guidelines and procedures shall include the following requirements and limitations:

(1)a.     The maximum grant amount shall not exceed one hundred thousand dollars ($100,000).

(2)        Recipient law enforcement agencies shall be required to provide one dollar ($1.00) of local funds for every one dollar ($1.00) of grant funds received.

(3)b.     Grantees shall be required to have appropriate policies and procedures in place governing the operation of body‑worn or dashboard cameras, as defined by G.S. 132‑1.4A, and the proper storage of images recorded with those cameras.

"SECTION 16.7.(b)  The Governor's Crime Commission shall submit a report on the grant funds distributed pursuant to this section during to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety as follows:

(1)        For the 2017‑2018 fiscal year to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety year, no later than August 1, 2018.

(2)        For the 2018‑2019 fiscal year, no later than August 1, 2019.

"SECTION 16.7.(b1)  No later than July 1, 2019, the North Carolina Sheriffs' Association shall submit to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety a report on the use of the grant funds distributed pursuant to subdivision (2) of subsection (a) of this section.

"SECTION 16.7.(c)  Definition. – The term "body‑worn camera" means an operational video camera, including a microphone or other mechanism for allowing audio capture, affixed to a law enforcement officer's uniform and positioned in a way that allows the video camera to capture interactions the law enforcement officer has with the public."

SECTION 16.1.(b)  This section becomes effective June 30, 2018, and applies to funds not obligated on that date.

 

GOVERNOR'S CRIME COMMISSION GRANT REPORTS

SECTION 16.2.(a)  Part 6 of Article 13 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B‑1105.  Grants reporting.

(a)        State Grants. – Beginning August 1, 2018, and annually thereafter, the Governor's Crime Commission (Commission) shall report to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety (Committee) on all grant awards made by the Commission from State funds during the prior fiscal year. The report shall contain all of the following information:

(1)        The name of the unit of local government receiving the grant.

(2)        The purpose of the grant.

(3)        The economic tier of the county where the unit of local government receiving the grant is located.

(4)        Any recommended changes to State‑funded grant programs to benefit local law enforcement agencies.

(b)        Federal Grants. – Beginning December 1, 2018, and annually thereafter, the Commission shall report to the chairs of the Committee on Justice and Public Safety on all grant awards made by the Commission from federal funds during the prior federal fiscal year. The report shall contain all of the following information:

(1)        A list of all federal grants administered in the prior federal fiscal year.

(2)        The names of all entities receiving federal grants.

(3)        The amount, the purpose, and the terms of each grant.

(4)        Whether there are any terms, conditions, or other contingencies that may arise as a result of a freeze on federal funds or result in compliance issues.

(5)        A list of any penalties that have been assessed. The list shall include the entity against which the penalty was assessed, the reason for the assessment, and the source of funds used to pay any penalty.

(c)        Reporting Notice of Penalty. – The Commission shall notify the chairs of the Committee of the receipt of any notice of assessment or notice of penalty. The Commission must notify the chairs in writing, within 30 days of the receipt of the notice, and must include a copy of the notice and any subsequent correspondence by the Commission with the agency assessing the penalty."

SECTION 16.2.(b)  The Governor's Crime Commission may include the reports on grants for body‑worn or dashboard video camera required under Section 16.1 of this act in the State Grants report required under G.S. 143B‑1105(a), as enacted in this act. The Commission shall include information from December 1, 2013, to December 1, 2018, in the initial report required under G.S. 143B‑1105(b) as enacted in subsection (a) of this section.

 

SAMARCAND TRAINING ACADEMY

SECTION 16.3.  G.S. 143‑341(8)i.3. reads as rewritten:

"§ 143‑341.  Powers and duties of Department.

The Department of Administration has the following powers and duties:

(8)        General Services:

i.          To establish and operate a central motor fleet and such subsidiary related facilities as the Secretary may deem necessary, and to that end:

3.         To require on a schedule determined by the Department all State agencies to transfer ownership, custody or control of any or all passenger motor vehicles within the ownership, custody or control of that agency to the Department, except those motor vehicles under the ownership, custody or control of the Highway Patrol, the State Bureau of Investigation, the Samarcand Training Academy, or the constituent institutions of The University of North Carolina which are used primarily for law‑enforcement purposes.

…."

 

SUBPART XVI‑A. GENERAL PROVISIONS [RESERVED]

 

SUBPART XVI‑B. DIVISION OF LAW ENFORCEMENT

 

VIPER IN‑KIND CONTRIBUTIONS/USER SURVEY/INCREASE OUTREACH

SECTION 16B.1.(a)  The Department of Public Safety (Department) shall determine the value of all in‑kind contributions made by units of local government, the federal government, and nongovernmental entities to support the North Carolina Voice Interoperability Plan for Emergency Responders (VIPER) system. As used in this subsection, an in‑kind contribution includes cash, land, buildings, towers, and equipment for VIPER sites. The Department shall report its findings to the Joint Legislative Oversight Committee on Justice and Public Safety by July 1, 2019.

SECTION 16B.1.(b)  The Department shall increase outreach to VIPER stakeholders beyond those that participate in the State Interoperability Executive Committee. The outreach may include zone or regional meetings conducted by the State Highway Patrol with local chiefs of police, sheriffs, fire chiefs, and representatives of emergency medical services.

SECTION 16B.1.(c)  The Department shall conduct an annual survey of local, State, and federal users of VIPER in order to track and measure user satisfaction and feedback over time. Beginning November 1, 2019, and annually thereafter, the Department shall report the survey results to the Joint Legislative Oversight Committee on Justice and Public Safety. This subsection expires July 1, 2025.

 

VIPER BUILD‑OUT/SUPPORT

SECTION 16B.2.  Notwithstanding G.S. 148‑10.4, for fiscal year 2018‑2019, the sum of sixteen million five hundred thousand dollars ($16,500,000) nonrecurring shall be transferred from Budget Code 24550, Fund Code 2325, to Budget Code 14550, Fund Code 1414, to be used to upgrade and support North Carolina's Voice Interoperability Plan for Emergency Responders (VIPER) and to be allocated as follows:

(1)        Eight million seven hundred thousand dollars ($8,700,000) for GTR base station hardware upgrades.

(2)        Five million dollars ($5,000,000) for Service Upgrade Assurance catch‑up.

(3)        One million five hundred thousand dollars ($1,500,000) for long‑term contract for Service Upgrade Assurance.

(4)        One million three hundred thousand dollars ($1,300,000) for MOSCAD security monitoring.

 

ENSURE ENFORCEMENT OF TOBACCO LAWS/PREVENTION OF SALES TO YOUTH

SECTION 16B.3.(a)  G.S. 143B‑928 reads as rewritten:

"§ 143B‑928.  Alcohol Law Enforcement Branch to remain separate and discrete component of the State Bureau of Investigation; retention of funds.funds; youth access to tobacco products.

(d)       The Alcohol Law Enforcement branch has jurisdiction and primary responsibility to enforce G.S. 14‑313 regarding youth access to tobacco products."

SECTION 16B.3.(b)  G.S. 18B‑500(b) reads as rewritten:

"(b)      Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an alcohol law‑enforcement agent shall have authority to arrest and take other investigatory and enforcement actions for any criminal offense. The primary responsibility of an agent shall be enforcement of the ABC and lottery laws.laws and G.S. 14‑313 regarding youth access to tobacco products."

SECTION 16B.3.(c)  This section becomes effective July 1, 2018, and applies to offenses committed on or after that date.

 

SUBPART XVI‑C. DIVISION OF ADULT CORRECTION

 

EXTEND REENTRY COUNCIL CONTRACTS

SECTION 16C.1.(a)  Section 16C.11D of S.L. 2017‑57 reads as rewritten:

"SECTION 16C.11D. For the 2017‑20182017‑2019 fiscal year, biennium, the Department of Public Safety may use existing Treatment for Effective Community Supervision funds to continue support for Local Reentry Councils in the following five pilot sites:

(1)        Hoke/Scotland/Robeson Counties – Robeson County Manager's Office.

(2)        Nash/Edgecombe/Wilson Counties – NC Community Action Association.

(3)        Pitt County – Life of NC, Inc., dba STRIVE.

(4)        Buncombe County – Buncombe County Health & Human Services/RHA.

(5)        Mecklenburg County – Mecklenburg Criminal Justice Services, Mecklenburg County Manager's Office."

SECTION 16C.1.(b)  This section becomes effective June 30, 2018.

 

PRISON REFORM FUNDING AND REPORTING

SECTION 16C.2.(a)  Notwithstanding G.S. 148‑10.4, for fiscal year 2018‑2019, the sum of fifteen million dollars ($15,000,000) nonrecurring shall be transferred from Budget Code 24550, Fund Code 2325, to Budget Code 14550, Fund Code 1399, for prison facility infrastructure improvements related to safety equipment.

SECTION 16C.2.(b)  The Department of Public Safety (Department) shall report quarterly beginning November 1, 2018, and continuing quarterly until November 1, 2019, to the Joint Legislative Oversight Committee on Justice and Public Safety on the implementation of the recommendations contained in the National Institute of Corrections Security Operational Assessment report of November 2017.

The report by the Department shall include all of the following:

(1)        All modifications to Department rules, policies, and procedures related to disciplinary actions against correctional officers and other correctional staff.

(2)        All modifications to Department rules, policies, and procedures related to disciplinary actions against inmates.

(3)        Information regarding improvements in collaboration between the Department and Correction Enterprises.

(4)        The amount, content, quality, and frequency of staff training.

(5)        Modifications to inmate work assignments, including assessments of the appropriateness of particular work assignments based on inmate classification.

(6)        The results of security audits and inspections, listed both by facility and aggregated.

(7)        Facility infrastructure improvements made to emergency communication, location tracking capabilities, and installation of additional cameras.

(8)        Increased availability of staff personal safety equipment and institutional safety equipment.

(9)        Adequacy of staffing of prison facilities and actions taken to increase staffing levels.

(10)      Changes to the hiring and orientation processes and procedures for correctional officers.

 

SUBPART XVI‑D. DIVISION OF JUVENILE JUSTICE

 

CONTINUE CRISIS AND ASSESSMENT CENTERs CONTRACTS

SECTION 16D.1.  Notwithstanding any other provision of law, of the funds appropriated to the Department of Public Safety for the 2018‑2019 fiscal year, the Department shall adjust its budget to achieve a savings of at least seven hundred thousand dollars ($700,000). The Department shall use the savings realized from the adjustments required under this section to increase the contract with the Methodist Home for Children, Inc., for the continued operation of crisis and assessment centers. The Department shall not use funds that have reverted or are carried forward to achieve the savings required under this section.

 

SUBPART XVI‑E. EMERGENCY MANAGEMENT AND NATIONAL GUARD [RESERVED]

 

PART XVII. DEPARTMENT OF JUSTICE

 

CRIMINAL JUSTICE FELLOWS PROGRAM

SECTION 17.1.(a)  G.S. 17C‑1 through G.S. 17C‑13 are designated as Article 1 of Chapter 17C of the General Statutes which is entitled "General."

SECTION 17.1.(b)  Chapter 17C of the General Statutes is amended by adding a new Article to read:

"Article 2.

"North Carolina Criminal Justice Fellows Program.

"§ 17C‑20.  Definitions.

As used in this Article, the following definitions apply:

(1)        Commission. – The North Carolina Criminal Justice Education and Training Standards Commission.

(2)        Committee. – The North Carolina Criminal Justice Fellows Committee.

(3)        Community college. – As defined in G.S. 115D‑2(2).

(4)        Division. – The Criminal Justice Standards Division of the North Carolina Department of Justice.

(5)        Eligible county. – A county with a population of less than 75,000 according to the latest federal decennial census.

(6)        Eligible criminal justice professions. – State and local sworn law enforcement officers, State correctional officers, other correctional officers maintained by local governments and juvenile justice agencies, sworn sheriffs and deputy sheriffs, detention officers, and telecommunicators under the direct supervision of a law enforcement agency.

(7)        Program. – The North Carolina Criminal Justice Fellows Program.

(8)        Recipient. – An individual selected by the Committee to receive a forgivable loan under the Program.

"§ 17C‑21.  North Carolina Criminal Justice Fellows Committee established; membership.

(a)        Committee Established. – There is established the North Carolina Criminal Justice Fellows Committee. The Committee shall be a Special Committee of the North Carolina Criminal Justice Education and Training Standards Commission, as defined in the Commission's bylaws. The Committee shall determine program and forgivable loan recipient selection criteria, selection procedures, and shall select the recipients to receive forgivable loans under the North Carolina Criminal Justice Fellows Program in accordance with the requirements of this Article.

(b)        Membership. – The Committee shall consist of 10 members who shall be appointed as follows:

(1)        The chair of the Commission shall appoint eight members of the Commission to the Committee as follows:

a.               Three at‑large members.

b.               Two sworn law enforcement officers.

c.               Two correctional officers.

d.               The ex officio member representing the President of The North       Carolina Community College System.

(2)        The chair of the North Carolina Sheriffs' Education and Training Standards Commission shall appoint two members of the North Carolina Sheriffs' Education and Training Standards Commission to the Committee.

(c)        Terms of Office. – Appointments to the Committee shall be for two‑year terms, commencing July 1, 2018.

(d)       Chair; Meetings. – The chair of the Commission shall call the first meeting of the Committee. The Committee members shall elect a chair and a vice‑chair from the membership of the Committee pursuant to the Commission's bylaws to serve one‑year terms. The Committee shall meet regularly at times and places deemed necessary by the chair or, in the absence of the chair, by the vice‑chair.

(e)        Expenses. – Committee members shall receive per diem, subsistence, and travel allowances in accordance with G.S. 138‑5 or G.S. 138‑6, as appropriate.

(f)        Vacancies. – Except as otherwise provided, if a vacancy occurs in the membership of the Committee, the appointing authority shall appoint another person meeting the same qualifications to serve for the balance of the unexpired term.

"§ 17C‑22.  North Carolina Criminal Justice Fellows Program established; administration.

(a)        Program. ⸻ There is established the North Carolina Criminal Justice Fellows Program to be administered by the Committee with the assistance of the Division. The purpose of the Program is to increase the number of criminal justice professionals by providing forgivable loans to exceptional individuals to obtain Applied Associate Degrees in Criminal Justice or other Committee‑approved related fields of study as preparation to enter a criminal justice profession.

(b)        Program Administrator. ⸻ The Director of the Division shall select a member of the Division staff, with the consent of the Committee, to serve as the Program administrator. The Program administrator will be responsible for all administrative duties and oversight of the Program as established by the Committee. The Program administrator will conduct recruitment efforts to include the following:

(1)        Target eligible counties.

(2)        Target high school graduates who, due to economic circumstances, are displaced, unemployed, or underemployed.

(3)        Target high school seniors who demonstrate an interest in becoming criminal justice professionals.

(4)        Engage with criminal justice professionals and leaders in eligible counties for input in the Program.

(5)        Attend high school career days, job fairs, and other activities in eligible counties to recruit qualified individuals into the Program.

(c)        Awards of Forgivable Loans. – The Program shall provide forgivable loans of up to three thousand one hundred fifty‑two dollars ($3,152.00) per year for up to two years to selected individuals. The funds from the forgivable loans may be used for tuition, fees, and the cost of books. The Committee may determine the maximum amount of loan proceeds that may be applied to community college fees and course textbooks. The number of forgivable loans awarded annually shall not exceed 100 and the total number of recipients in the Program each year shall not exceed 200. The Committee shall select recipients no later than June 1 of each year.

(d)       Eligibility Criteria. – An applicant must be domiciled in an eligible county at the time of application, a resident for tuition purposes as defined in G.S. 116‑143.1(a)(2), a high school graduate or a high school senior who will graduate from high school by the end of the current academic year, and demonstrate the intent upon completion of the Program to be employed as a criminal justice professional in an eligible county. An applicant who has been convicted of any of the following is ineligible to receive a forgivable loan:

(1)        A felony.

(2)        A crime for which the punishment could have been imprisonment for more than two years.

(3)        A crime or unlawful act defined as a Class B misdemeanor within the five‑year period prior to the date of application.

(4)        Four or more crimes or unlawful acts defined as Class A misdemeanors, except the trainee may be enrolled if the last conviction date occurred more than two years prior to the date of application.

(5)        A combination of four or more Class A misdemeanors or Class B misdemeanors regardless of the date of conviction.

(e)        Application Process. – The Committee may specify required application materials, including a certified State and local background check for applicants who are at least 18 years of age. Application materials and Committee deliberations are confidential and are not a public record as defined in G.S. 132‑1. The Committee shall publish application, award, and notification deadlines and provide written notification to applicants regarding the outcome of the Committee's deliberations.

(f)        Award of Forgivable Loan. – The Committee shall adopt standards for awarding forgivable loans based on measures the Committee deems appropriate, including the following, and the selection of recipients by the Committee shall be final:

(1)        Scholastic Profile as determined by SAT or ACT scores, grade point average, and class rank when available.

(2)        Potential for excellence in an eligible criminal justice profession.

(3)        School and community service.

(4)        At least two references.

(5)        Demonstrated writing ability.

(g)        Administration of Forgivable Loan Awards. – Upon the naming of recipients by the Committee, the Division shall perform all administrative functions necessary to implement this Article, which functions shall include dissemination of information, disbursement, receipt, liaison with participating community colleges, determination of the acceptability of service repayment agreements, and all other functions necessary for the execution, payment, and enforcement of promissory notes required under this Article.

(h)        Recipient Obligations. – A recipient must become and remain a full‑time student at a North Carolina community college in an Applied Associate Degree in Criminal Justice or in a Committee‑approved related field of study at all times during each of the recipient's two academic years of community college study and pursue continuously studies that will qualify the recipient to be employed in an eligible criminal justice profession upon graduation. The recipient must maintain a minimum cumulative 2.0 GPA throughout the course of study and also maintain appropriate credit hours for each semester to obtain an Applied Associate Degree in Criminal Justice or Committee‑approved field of study within two years. The recipient must also accept employment in an eligible county as a criminal justice professional for at least four out of five years following graduation. The Committee may adopt additional recipient obligations it deems appropriate.

(i)         Annual Report. – The Program administrator, in coordination with the Committee, shall report no later than January 1, 2020, and annually thereafter, to the Joint Legislative Oversight Committee on Justice and Public Safety regarding the following:

(1)        The number of forgivable loans awarded for each academic year disaggregated to include geographic and other demographic information.

(2)        Aggregated student performance, retention, and graduation rates.

(3)        Employment subsequent to completion of the Program broken down by eligible county and eligible criminal justice profession.

(4)        Forgiveness, termination, default, and repayment rates.

(5)        Retention rates of recipients within eligible criminal justice professions disaggregated by eligible county.

"§ 17C‑23.  Terms of forgivable loans; receipt and disbursement of funds; default.

(a)        Forgivable Loans. – All forgivable loans shall be evidenced by notes made payable to the Program that bear interest at a rate not to exceed ten percent (10%) per year as set by the Committee and beginning on the first day of September after the completion of the Program or 60 days after termination of the forgivable loan, whichever is earlier. The forgivable loan may be terminated upon the recipient's withdrawal from school, by the recipient's failure to meet the standards set by the Committee, or by the recipient's default based on conditions set by the Committee. The Committee may only disburse funds to the community college where the recipient is enrolled and may not disburse funds directly to a recipient.

(b)        Forgiveness. – The Committee shall forgive the loan and any interest accrued on the loan if, within five years after obtaining an Applied Associate Degree in Criminal Justice or Committee‑approved field of study, the recipient is employed on a full‑time basis for a period of at least four years in an eligible county in an eligible criminal justice profession. The recipient shall provide the Committee within 60 days of completion of the Program verification of the recipient's intent to seek employment as a criminal justice professional in an eligible county. The recipient shall provide verification of employment to the Committee each year until the obligation is satisfied. The Committee shall also forgive the loan if it finds that it is impossible for the recipient to meet the terms of the loan, after or before graduation, due to death or permanent disability of the recipient.

(c)        Extension. – The Committee may extend repayment of the loan for up to two years on a year‑to‑year basis for each year if (i) the recipient is on active duty with the Armed Forces of the United States or (ii) the Committee, in its sole discretion, determines that circumstances warrant an extension.

(d)       Repayment. – If the recipient notifies the Committee that the recipient intends to forego forgiveness of the loan after completion of the Program, the Committee shall provide the recipient with the conditions of repayment and the recipient will have 60 days to begin repayment of all funds distributed, including interest. The recipient will have up to 60 months to repay all funds distributed, including interest.

(e)        Default. – The Committee shall determine the events that constitute a default during the Program, including, but not limited to, failure by the recipient to comply with the obligations set out in G.S. 17C‑22(h). In the event of default during the Program, the Committee may declare the entire unpaid amount of indebtedness evidenced by the note, including interest, immediately due and payable. A default shall preclude further participation by the recipient in the Program. Upon default, the Committee shall notify the recipient, in writing, by certified mail, return receipt requested, addressed to the recipient at the last address on file with the Committee. Refusal or nondelivery at that address will be deemed delivered after seven days. The Committee may allow a recipient who is in default to repay all funds distributed, including interest. If the Committee approves repayment, the recipient will receive the conditions of repayment and will have 60 days to begin repayment of all funds distributed, including interest. The recipient will have up to 60 months to repay all funds distributed, including interest."

SECTION 17.1.(c)  G.S. 115D‑5(b) reads as rewritten:

"(b)      In order to make instruction as accessible as possible to all citizens, the teaching of curricular courses and of noncurricular extension courses at convenient locations away from institution campuses as well as on campuses is authorized and shall be encouraged. A pro rata portion of the established regular tuition rate charged a full‑time student shall be charged a part‑time student taking any curriculum course. In lieu of any tuition charge, the State Board of Community Colleges shall establish a uniform registration fee, or a schedule of uniform registration fees, to be charged students enrolling in extension courses for which instruction is financed primarily from State funds. The State Board of Community Colleges may provide by general and uniform regulations for waiver of tuition and registration fees for the following:

(2)        Courses requested by the following entities that support the organizations' training needs and are on a specialized course list approved by the State Board of Community Colleges:

j.          The Division of Criminal Justice Education and Training Standards of the Department of Justice for the training of criminal justice professionals, as defined in G.S. 17C‑20(6), who are required to be certified under (i) Chapter 17C of the General Statutes and the rules of the Criminal Justice and Training Standards Commission or (ii) Chapter 17E of the General Statutes and the rules of the North Carolina Sheriffs' Education and Training Standards Commission."

SECTION 17.1.(d)  The Division shall report to the chairs of the Senate Appropriations Committee on Justice and Public Safety and the chairs of the House Appropriations Committee on Justice and Public Safety no later than April 1, 2019, regarding implementation of this section, including the number of recipients the Committee anticipates will participate in the Program during the 2019‑2020 academic year.

 

REPORT ON ATTORNEY GENERAL'S OFFICE MANAGEMENT FLEXIBILITY REDUCTION

SECTION 17.2.  Section 17.5 of S.L. 2017‑57 is amended by adding a new subsection to read:

"SECTION 17.5.(c)  The Attorney General shall report to the Joint Legislative Oversight Committee on Justice and Public Safety by August 1, 2018, on implementation of this section."

 

PART XVIII. JUDICIAL DEPARTMENT

 

SUBPART XVIII‑A. OFFICE OF INDIGENT DEFENSE SERVICES

 

MODIFY REPORT DATE/PUBLIC DEFENDER WORKLOAD FORMULA

SECTION 18A.1.  Section 18A.2 of S.L. 2017‑57 reads as rewritten:

"SECTION 18A.2. Indigent Defense Services, Services (IDS), in conjunction with the Administrative Office of the Courts and the National Center for State Courts, shall develop a workload formula for the public defender offices. Indigent Defense Services shall use funds available to develop the workload formula.

The report shall include IDS shall make an interim and a final report on the workload formula as well as the number of public defenders that Indigent Defense Services it recommends to be allocated to each public defender office. The report shall be submitted IDS shall submit the reports to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety and the chairs of the House of Representatives Appropriations Committee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety no later than Safety. The interim report is due no later than May 1, 2018.2018, and the final report is due no later than December 1, 2018."

 

CREATE NEW PUBLIC DEFENDER DISTRICT in MCDOWELL and RUTHERFORD counties/expand District 3B

SECTION 18A.2.(a)  G.S. 7A‑498.7 reads as rewritten:

"§ 7A‑498.7.  Public Defender Offices.

(a)        The following counties of the State are organized into the defender districts listed below, and in each of those defender districts an office of public defender is established:

Defender District                                                                    Counties

1                                                                                  Camden, Chowan,

                                                                                    Currituck, Dare, Gates,

                                                                                    Pasquotank, Perquimans

3A                                                                               Pitt

3B                                                                               Craven, Pamlico, Carteret

5                                                                                  New Hanover

10                                                                                Wake

12                                                                                Cumberland

14                                                                                Durham

15B                                                                             Orange, Chatham

16A                                                                             Scotland, Hoke

16B                                                                             Robeson

18                                                                                Guilford

21                                                                                Forsyth

26                                                                                Mecklenburg

27A                                                                             Gaston

28                                                                                Buncombe

29A                                                                             McDowell, Rutherford

29B                                                                             Henderson, Polk, Transylvania

After notice to, and consultation with, the affected district bar, senior resident superior court judge, and chief district court judge, the Commission on Indigent Defense Services may recommend to the General Assembly that a district or regional public defender office be established. A legislative act is required in order to establish a new office or to abolish an existing office.

(b)        For each new term, and to fill any vacancy, public defenders shall be appointed from a list of not less than two and not more than three and not more than four names nominated as follows:

(1)        Not less than two and not more than three by written ballot of the attorneys resident in the defender district who are licensed to practice law in North Carolina. The balloting shall be conducted pursuant to rules adopted by the Commission on Indigent Defense Services.

(2)        One name submitted by the Administrative Officer of the Courts after consultation with the Director of the Office of Indigent Defense Services.

(b1)      The appointment required under subsection (b) of this section shall be made by the senior resident superior court judge of the superior court district or set of districts as defined in G.S. 7A‑41.1 that includes the county or counties of the defender district for which the public defender is being appointed.

…."

SECTION 18A.2.(b)  The Office of Indigent Defense Services may use up to the sum of one million four hundred thousand dollars ($1,400,000) in funds appropriated to create new positions for the Public Defender District 29A, as provided in subsection (a) of this section. These positions shall include the public defender, up to eight assistant public defenders, and up to four support positions.

SECTION 18A.2.(c)  The Office of Indigent Defense Services may use up to the sum of one million three hundred thousand dollars ($1,300,000) in funds appropriated to create new positions for Public Defender District 3B, as provided in subsection (a) of this section. These positions shall include up to five assistant public defenders and appropriate support positions.

 

OPT‑OUT/UNIFORM FEE SCHEDULE IDS PILOT PROJECT

SECTION 18A.3.  Subsection 19A.4(b) of S.L. 2016‑94 reads as rewritten:

"SECTION 19A.4.(b)  Sites. – The Administrative Office of the Courts shall, after consultation with the Office of Indigent Defense Services, select one or more counties in at least six judicial districts in which to implement the pilot project. Two of those counties shall have small caseloads in district court; two shall have medium caseloads in district court; and two shall have large caseloads in district court. Any judicial district selected by the Administrative Office of the Courts shall participate in the pilot project. The following districts shall not be selected as sites for the implementation of the pilot project: District 10, District 18, and District 26.

The chief district court judge of a county selected to participate in the pilot project may request to withdraw the county from participation in all or portions of the pilot project. The request shall be in writing, submitted to the Administrative Office of the Courts, and shall include specific reasons for the request. The Administrative Office of the Courts, after consultation with the Office of Indigent Defense Services, may, in its discretion, grant the request. If a county withdraws completely from the pilot program, the Administrative Office of the Courts may, after consultation with the Office of Indigent Defense Services, select another county that has a similar caseload to participate in the pilot program."

 

FINAL REPORT ON STANDARDS FOR INDIGENCY

SECTION 18A.4.  Section 18A.3 of S.L. 2017‑57 reads as rewritten:

"SECTION 18A.3. The Administrative Office of the Courts, in conjunction with Indigent Defense Services, shall study and develop specific statewide standards for determining indigency for defendants. The study shall include a review of the practices of other states regarding determination of indigency, analysis of the cost‑effectiveness of alternatives to the status quo, and implementation plans for the standards agreed upon. The standards may take local expenses and cost‑of‑living into account. The implementation plans should include procedures for auditing future indigency determinations to ensure that the new standards are working as intended. The Administrative Office of the Courts and Indigent Defense Services shall issue a an interim report to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety by February 1, 2018.February 1, 2018, and a final report by October 1, 2018."

 

SUBPART XVIII‑B. ADMINISTRATIVE OFFICE OF THE COURTS

 

NOTICE OF FEE WAIVER/IMPLEMENTATION REPORT

SECTION 18B.1.  G.S. 7A‑304 is amended by adding a new subsection to read:

"(a2)    The Administrative Office of the Courts shall report on October 1, 2018, and annually thereafter, to the Joint Legislative Oversight Committee on Justice and Public Safety on the implementation of the notice of waiver of costs to the government entities directly affected as required by subsection (a) of this section."

 

STUDY APPROPRIATE HOUSING/TREATMENT FOR DWI OFFENDERS

SECTION 18B.2.  The North Carolina Sentencing and Policy Advisory Commission (Commission), in consultation with the Department of Public Safety and the North Carolina Sheriffs' Association, shall study the most effective setting to house and provide appropriate treatment services for Driving While Impaired Aggravated Level One and Level One offenders. The study shall consider whether State prisons, county jails, or dedicated multicounty jail treatment facilities are the most appropriate setting.

The Commission shall report the findings and recommendations, including any legislative proposals, to the House of Representatives Appropriations Committee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety by February 1, 2019.

 

FIVE‑YEAR PROJECTION STATEWIDE MISDEMEANANT CONFINEMENT BEDS

SECTION 18B.3.(a)  Article 4 of Chapter 164 of the North Carolina General Statutes is amended by adding a new section to read:

"§ 164‑51.  Five‑year projection; Statewide Misdemeanant Confinement Program.

The Judicial Department, through the North Carolina Sentencing and Policy Advisory Commission (Commission) and with the assistance of the North Carolina Sheriffs' Association (Sheriffs' Association), shall develop projections of available bed space in the Statewide Misdemeanant Confinement Program (Program). The projections shall cover the next five fiscal years beginning with the 2018‑2019 fiscal year. All State agencies, the Sheriffs' Association, and the person having administrative control of a local confinement facility as defined in G.S. 153A‑217(5) shall furnish to the Commission data related to available bed space as requested to implement this section.

The Commission shall report its projections to the chairs of the Senate Appropriations Committee on Justice and Public Safety and the chairs of the House Appropriations Committee on Justice and Public Safety no later than February 15, 2019, and annually thereafter."

SECTION 18B.3.(b)  The Judicial Department, through the North Carolina Sentencing and Policy Advisory Commission (Commission) and with the assistance of the North Carolina Sheriffs' Association (Sheriffs' Association), shall study the feasibility of developing five‑year population projections for the Statewide Misdemeanant Confinement Program. The study shall examine potential data needs and existing data, as well as potential projection methods, including making modifications to the existing population simulation model, developing a new model, or using another approach. All State agencies, the Sheriffs' Association, and the person having administrative control of a local confinement facility as defined in G.S. 153A‑217(5) shall furnish to the Commission data related to the population as requested to implement this section.

The Commission shall report the results of the feasibility study to the chairs of the Senate Appropriations Committee on Justice and Public Safety and the chairs of the House Appropriations Committee on Justice and Public Safety no later than February 15, 2019.

 

E‑COURTS SYSTEM

SECTION 18B.4.(a)  Notwithstanding G.S. 143C‑1‑2(b), for the fiscal year 2018‑2019, the Judicial Department shall transfer any unexpended, unencumbered funds to Budget Code 22006‑2006 to be used to implement an integrated information technology system (e‑Courts) in accordance with G.S. 7A‑343.2(b). The cumulative sum transferred shall not exceed three percent (3%) of the Judicial Department's certified budgets for Budget Code 12000, Administrative Office of the Courts, and Budget Code 12001, Office of Indigent Defense Services, for the 2018‑2019 fiscal year.

SECTION 18B.4.(b)  The Administrative Office of the Courts (AOC) shall develop a plan for implementing the e‑Courts system, including estimates of the overall scope, the overall cost, annual costs, and the benchmarks that will be met in each year of the project. AOC is encouraged to consult with the Department of Information Technology when developing the plan for the e‑Courts system. AOC shall submit the plan for the e‑Courts system to the chairs of the House of Representatives Appropriations Committee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety no later than March 1, 2019.

 

ALLOCATION OF SUPERIOR COURT JUDGES

SECTION 18B.5.(a)  G.S. 7A‑41(a) reads as rewritten:

"§ 7A‑41.  Superior court divisions and districts; judges.

(a)        The counties of the State are organized into judicial divisions and superior court districts, and each superior court district has the counties, and the number of regular resident superior court judges set forth in the following table, and for districts of less than a whole county, as set out in subsection (b) of this section:

                              Superior

Judicial                  Court                                                                     No. of Resident

Division                 District                  Counties                                  Judges

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––‑

First                       1                            Camden, Chowan,                              2

                                                            Currituck,

                                                            Dare, Gates,

                                                            Pasquotank,

                                                            Perquimans

First                       2                            Beaufort, Hyde,                                  1

                                                            Martin,

                                                            Tyrrell, Washington

First                       3A                         Pitt                                                      2

Second                  3B                         Carteret, Craven,                                 3

                                                            Pamlico

Second                  4A                         Duplin, Jones,                                     1

                                                            Sampson

Second                  4B                         Onslow                                                1

Second                  5A                         (part of New Hanover,                        1

                                                            part of Pender

                                                            see subsection (b))

                              5B                         (part of New Hanover,                        1

                                                            part of Pender

                                                            see subsection (b))

                              5C                         (part of New Hanover,                        1

                                                            see subsection (b))

First                       6A                         Halifax                                                1

First                       6B                         Bertie, Hertford,                                 1

                                                            Northampton

First                       7A                         Nash                                                    1

First                       7B                         (part of Wilson,                                   1

                                                            part of Edgecombe,

                                                            see subsection (b))

First                       7C                         (part of Wilson,                                   1

                                                            part of Edgecombe,

                                                            see subsection (b))

Second                  8A                         Lenoir and Greene                              1

Second                  8B                         Wayne                                                 1

 

Third                     9                            Franklin, Granville,                             2

                                                            Person, Vance, Warren

Third                     10A                       (part of Wake,                                     1

                                                            see subsection (b))

Third                     10B                       (part of Wake,                                     2

                                                            see subsection (b))

Third                     10C                       (part of Wake,

                                                            see subsection (b))

Third                     10D                       (part of Wake,                                     1

                                                            see subsection (b))

Fourth                   11A                       Harnett,                                               1

                                                            Lee

Fourth                   11B                       Johnston                                              1

Fourth                   12A                       (part of Cumberland,                          1

                                                            see subsection (b))

Fourth                   12B                       (part of Cumberland,                          1

                                                            see subsection (b))

Fourth                   12C                       (part of Cumberland,                          2

                                                            see subsection (b))

Fourth                   13A                       Bladen, Columbus                               1

Fourth                   13B                       Brunswick                                           1

Third                     14A                       (part of Durham,                                 1

                                                            see subsection (b))

Third                     14B                       (part of Durham,                                 3

                                                            see subsection (b))

Third                     15A                       Alamance                                            2

Third                     15B                       Orange, Chatham                                2

Fourth                   16A                       Anson, Richmond,                              2

                                                            Scotland, Hoke

Fourth                   16B                       Robeson                                              2

Fifth                      17A                       Caswell, Rockingham                         32

Fifth                      17B                       Stokes, Surry                                       21

Fifth                      18A                       (part of Guilford,                                1

                                                            see subsection (b))

Fifth                      18B                       (part of Guilford,                                1

                                                            see subsection (b))

Fifth                      18C                       (part of Guilford,                                1

                                                            see subsection (b))

Fifth                      18D                       (part of Guilford,                                1

                                                            see subsection (b))

Fifth                      18E                        (part of Guilford,                                1

                                                            see subsection (b))

Sixth                      19A                       Cabarrus                                              1

Fifth                      19B                       Montgomery, Randolph                     12

Sixth                      19C                       Rowan                                                 1

Fourth                   19D                       Moore                                                  1

Sixth                      20A                       Stanly                                                  1

Sixth                      20B                       Union                                                  2

Fifth                      21A                       (part of Forsyth,                                  1

                                                            see subsection (b))

Fifth                      21B                       (part of Forsyth,                                  1

                                                            see subsection (b))

Fifth                      21C                       (part of Forsyth,                                  1

                                                            see subsection (b))

Fifth                      21D                       (part of Forsyth,                                  1

                                                            see subsection (b))

Sixth                      22A                       Alexander, Iredell                               2

Sixth                      22B                       Davidson, Davie                                 2

Fifth                      23                          Alleghany, Ashe,                                1

                                                            Wilkes, Yadkin

Eighth                   24                          Avery, Madison,                                 2

                                                            Mitchell,

                                                            Watauga, Yancey

Seventh                 25A                       Burke, Caldwell                                  2

Seventh                 25B                       Catawba                                              2

Seventh                 26A                       (part of Mecklenburg,                         2

                                                            see subsection (b))

Seventh                 26B                       (part of Mecklenburg,                         3

                                                            see subsection (b))

Seventh                 26C                       (part of Mecklenburg,                         2

                                                            see subsection (b))

Seventh                 27A                       Gaston                                                 2

Seventh                 27B                       Cleveland, Lincoln                              2

Eighth                   28                          Buncombe                                           2

Eighth                   29A                       McDowell,                                          1

                                                            Rutherford

Eighth                   29B                       Henderson, Polk,                                 1

                                                            Transylvania

Eighth                   30A                       Cherokee, Clay,                                  1

                                                            Graham, Macon,

                                                            Swain

Eighth                   30B                       Haywood, Jackson                              1."

SECTION 18B.5.(b)  In order to implement the changes in subsection (a) of this section, the following applies:

(1)        In order to implement the changes in subsection (a) of this section, the superior court judgeship serving District 17A that was allocated to Judicial District 9A of the superior court of the General Court of Justice pursuant to Section 18B.9(b) of S.L. 2017‑57 shall be reallocated to Judicial District 19B of the superior court of the General Court of Justice effective January 1, 2019.

(2)        The reduction in judgeships in Judicial District 17B of the superior court of the General Court of Justice applies to the judgeship with a term that expires on December 31, 2018.

SECTION 18B.5.(c)  This section becomes effective January 1, 2019, and elections conducted in 2018 shall be conducted in accordance with the districts as modified by this section.

 

ALLOCATION OF ASSISTANT DISTRICT ATTORNEYS

SECTION 18B.6.  Effective January 1, 2019, G.S. 7A‑41(a1) reads as rewritten:

"(a1)    The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full‑time assistant district attorneys set forth in the following table:

                                                                                                                  No. of Full‑Time

Prosecutorial                                                                                                Asst. District

District                                                Counties                                        Attorneys

1                              Camden, Chowan, Currituck,                                       11

                                   Dare, Gates, Pasquotank,

                                Perquimans

2                              Beaufort, Hyde, Martin,                                                  8

                                   Tyrrell, Washington

3                              Pitt                                                                                 12

4                              Carteret, Craven, Pamlico                                            13

5                              Duplin, Jones, Onslow, Sampson                                 19

6                              New Hanover, Pender                                                   19

7                              Bertie, Halifax, Hertford,                                              11

                                   Northampton

8                              Edgecombe, Nash, Wilson                                           19

9                              Greene, Lenoir, Wayne                                                 14

10                            Franklin, Granville, Person                                       1314

                                   Vance, Warren

11                            Wake                                                                             42

12                            Harnett, Lee                                                                  11

13                            Johnston                                                                        10

14                            Cumberland                                                                  25

15                            Bladen, Brunswick, Columbus                                     14

16                            Durham                                                                         18

17                            Alamance                                                                      12

18                            Orange, Chatham                                                          10

19                            Scotland, Hoke                                                               7

20                            Robeson                                                                        12

21                            Anson, Richmond                                                           6

22                            Caswell, Rockingham                                                 109

23                            Stokes, Surry                                                                   8

24                            Guilford                                                                        34

25                            Cabarrus                                                                          9

26                            Montgomery, Randolph                                                10

27                            Rowan                                                                             9

28                            Moore                                                                             5

29                            Stanly                                                                              5

30                            Union                                                                            11

31                            Forsyth                                                                          27

32                            Alexander, Iredell                                                         12

33                            Davidson, Davie                                                           12

34                            Alleghany, Ashe, Wilkes, Yadkin                                  9

35                            Avery, Madison, Mitchell,                                              8

                                   Watauga, Yancey

36                            Burke, Caldwell, Catawba                                            19

37                            Mecklenburg                                                                 58

38                            Gaston                                                                           15

39                            Cleveland, Lincoln                                                       12

40                            Buncombe                                                                     14

41                            McDowell, Rutherford                                                   8

42                            Henderson, Polk, Transylvania                                       9

43                            Cherokee, Clay, Graham,                                             12

                                Haywood, Jackson, Macon, Swain."

 

PART XIX. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

 

IMPROVEMENTS TO VETERANS CEMETERY

SECTION 19.1.  The Department of Military and Veterans Affairs is authorized to apply for federal funds for future improvements to Coastal Carolina State Veterans Cemetery. The amount of federal funds applied for shall not require a State match that exceeds the cash balance in Budget Code 23050 after all budgetary requirements have been met. By November 1, 2018, the Department shall submit a report to the Joint Legislative Oversight Committee on General Government providing the details of any improvement projects and federal grant requests, including match requirements and a time line for project development and completion.

 

VA SCHOLARSHIPS/TECHNICAL AMENDMENT

SECTION 19.2.  G.S. 143B‑1226 reads as rewritten:

"§ 143B‑1226.  Classes or categories of eligibility under which scholarships may be awarded.

(b)        Scholarship Eligibility Classes. –

(4)        Class III: Under this class a scholarship may be awarded to not more than 100 children yearly, each of whose veteran parent, at the time the benefits pursuant to this Part are sought to be availed of:

a.         Is or was at the time of his death drawing pension for permanent and total disability, nonservice‑connected, as rated by the United States Department of Veterans Affairs.

b.         Is deceased and who does not fall within the provisions of any other eligibility class described in G.S. 143B‑1226(1), (2), (3), (4)a., nor (5).deceased.

c.         Served in a combat zone, or waters adjacent to a combat zone, or any other campaign, expedition, or engagement for which the United States Department of Defense authorizes a campaign badge or medal, who does not fall within the provisions of any other class described in G.S. 143B‑1226(1), (2), (3), (4)a., or (5).medal.

…."

 

MILITARY AFFAIRS COMMISSION/MEMBERS and PAYMENT OF EXPENSES FROM BRAC FUNDS

SECTION 19.3.(a)  Section 19.1(f) of S.L. 2017‑57 reads as rewritten:

"SECTION 19.1.(f)  Notwithstanding G.S. 143B‑1214 and G.S. 143B‑1217, the funds appropriated in this act to the Military Presence Stabilization Fund for the 2017‑2018 fiscal year may be used for the following purposes:

(1)        Up to the sum of two hundred twenty‑five thousand dollars ($225,000) may be used to provide grants to local communities or military installations. These funds shall only be used for actual project expenses and shall not be used to pay for lobbying the North Carolina General Assembly, salaries, travel, or other administrative costs. The North Carolina Military Affairs Commission shall establish guidelines for applying for these grants.

(2)        Administrative expenses and reimbursements for members of the North Carolina Military Affairs Commission.

(3)        Federal advocacy and lobbying support.

(4)        Updates to strategic planning analysis and strategic plan.

(5)        Economic impact analyses.

(6)        Public‑public/public‑private (P4) initiatives.

(7)        Identification and implementation of innovated measures to increase the military value of installations.

(8)        Fully fund the position at the North Carolina Economic Development Center."

SECTION 19.3.(b)  Section 19.1 of S.L. 2017‑57 is amended by adding a new subsection to read as follows:

"SECTION 19.1.(f1)  The Department shall pay expenses authorized by subsection (f) of this section and approved by the North Carolina Military Affairs Commission within 30 days of receiving a request from the Commission that payment be made. Notwithstanding the 30‑day time period provided for in this subsection, the Department shall make payment on a contract or grant awarded by the Commission no later than the date payment is due according to the terms of the contract or grant, and the Commission shall not be required to request that the Department make the contract or grant payment. The chair may authorize a member of the Commission's Executive Steering Group or another representative to make a request for payment. Upon receipt of a request for payment, the Department shall issue a written acknowledgment of the request to the Commission or duly authorized representative and shall, once payment has been made, provide proof of payment to the Commission or duly authorized representative."

SECTION 19.3.(c)  Section 19.1(g) of S.L. 2017‑57 reads as rewritten:

"SECTION 19.1.(g)  The North Carolina Military Affairs Commission shall report to the Joint Legislative Oversight Committee on General Government no later than February 15, 2018, February 15, 2019, on the expenditures from the Military Presence Stabilization Fund."

SECTION 19.3.(d)  G.S. 143B‑1311 reads as rewritten:

"§ 143B‑1311.  Membership.

(b)        The voting members of the Commission shall be appointed as follows:

(2)        Five members appointed by the Speaker of the House of Representatives, consisting of:

a.         One member of the House of Representatives. A House member who has served in the military or has extensive experience in the area of military affairs shall be selected. The House member shall not vote on matters that expend funds appropriated by the General Assembly.

(3)        Five members appointed by the President Pro Tempore of the Senate, consisting of:

a.         One member of the Senate. A Senate member who has served in the military or has extensive experience in the area of military affairs shall be selected. The Senate member shall not vote on matters that expend funds appropriated by the General Assembly.

(f)        The Chair of the Commission shall be appointed by the Governor from the voting members of the Commission. A member of the General Assembly who is appointed to the Commission shall not vote on matters that expend funds appropriated by the General Assembly.

…."

 

PART XX. OFFICE OF ADMINISTRATIVE HEARINGS [RESERVED]

 

PART XXI. TREASURER

 

LOCAL GOVERNMENT COMMISSION/REPORTS FROM LOCAL GOVERNMENTS

SECTION 21.1.(a)  G.S. 159‑33.1 reads as rewritten:

"§ 159‑33.1.  Semiannual reports of financial information.

The finance officer of each unit and public authority shall submit to the secretary on January 1 and July 1 of each year (or such other dates as the secretary may prescribe) a statement of financial information concerning the unit or public authority. The secretary may prescribe the information to be included in the statement and may prescribe the form of the statement.statement; provided, however, the secretary shall prescribe that the finance officer of each city and county shall include in the statement the total revenues received from building inspections, by type, and the total expenditures paid from all revenues received, by type."

SECTION 21.1.(b)  The Local Government Commission shall incorporate in information technology projects to assist local governments in accounting and financial management one or more line items on which each city and county shall provide the total revenue received from building inspections and the total expenditures paid from the revenue received.

 

PART XXII. DEPARTMENT OF INSURANCE

 

WORKERS' COMPENSATION/ALLOW ALTERNATIVE EMPLOYER PENALTY

SECTION 22.1.  G.S. 97‑94 reads as rewritten:

"§ 97‑94.  Employers required to give proof that they have complied with preceding section; penalty for not keeping liability insured; review; liability for compensation; criminal penalties for failure to secure payment of compensation.

(a)        Every employer subject to the compensation provisions of this Article shall file with the Commission, in form prescribed by it, as often as the Commission determines to be necessary, evidence of its compliance with the provisions of G.S. 97‑93 and all other provisions relating thereto.

(b)        Any employer required to secure the payment of compensation under this Article who refuses or neglects to secure such compensation shall be punished by a penalty of one dollar ($1.00) for each employee, but not less than fifty dollars ($50.00) nor more than one hundred dollars ($100.00) for each day of such refusal or neglect, and until the same ceases; and the employer shall be liable during continuance of such refusal or neglect to an employee either for compensation under this Article or at law at the election of the injured employee.

The penalty herein provided may be assessed by the Industrial Commission administratively, with the right to a hearing if requested within 30 days after notice of the assessment of the penalty and the right of review and appeal as in other cases. Enforcement of the penalty shall be made by the Office of the Attorney General. The clear proceeds of penalties provided for in this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.

(b1)      Any employer required to secure the payment of compensation under this Article who refuses or neglects to secure such compensation shall be punished by a penalty of one dollar ($1.00) for each employee, but not less than twenty dollars ($20.00) nor more than one hundred dollars ($100.00), for each day of such refusal or neglect and until the same ceases.

(b2)      As an alternative to the penalty imposed in subsection (b1) of this section, the employer may submit to the Commission evidence that the employer has obtained workers' compensation insurance coverage from either an insurer licensed to do business in North Carolina or the North Carolina Workers' Compensation Insurance Plan. In addition to submitting such evidence, the employer shall submit to the Commission all payroll records for the period or periods of noncompliance. The Commission shall, after verifying the coverage and upon the request of the employer, rescind the penalty assessed under subsection (b1) of this section and impose a penalty by:

(1)        First, determining the per employee cost of the current policy by dividing the cost of the policy by the number of employees covered by the policy.

(2)        Second, determining the average number of employees during the period of noncompliance.

(3)        Third, multiplying the per employee cost of the current policy by the average number of employees during the period of noncompliance and, to that total, by applying an additional penalty of ten percent (10%).

The alternate penalty provided by this subsection is available only to an employer not previously penalized under this section.

(c)        Any penalty imposed by this section may be assessed by the Industrial Commission administratively, with the right to a hearing if requested within 30 days after notice of the assessment of the penalty and the right of review and appeal as in other cases. For the purposes of assessing the penalties set forth in subsections (b1) and (b2) of this section, the penalty shall not apply to a period of noncompliance that occurred more than three years prior to the date the Industrial Commission first assessed the penalty. Enforcement of the penalty shall be made by the Office of the Attorney General. The clear proceeds of penalties provided for in this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.

In addition to any penalty under this section, the employer shall be liable, during the continuance of the refusal or neglect, to an employee for compensation under this Article or at law at the election of the injured employee. The Industrial Commission shall prioritize the payment of any compensation due an injured employee under this Article over the payment of any penalty owed pursuant to this section.

Any employer required to secure the payment of compensation under this Article who willfully fails to secure such compensation shall be guilty of a Class H felony. Any employer required to secure the payment of compensation under this Article who neglects to secure the payment of compensation shall be guilty of a Class 1 misdemeanor.

(d)       Any person who, with the ability and authority to bring an employer in compliance with G.S. 97‑93, willfully fails to bring the employer in compliance, shall be guilty of a Class H felony. Any person who, with the ability and authority to bring an employer in compliance with G.S. 97‑93, neglects to bring the employer in compliance, shall be guilty of a Class 1 misdemeanor. Any person who violates this subsection may be assessed a civil penalty by the Commission in an amount up to one hundred percent (100%) of the amount of any compensation due the employer's employees injured during the time the employer failed to comply with G.S. 97‑93.

(e)        Notwithstanding the provisions of G.S. 97‑101, the Commission may suspend collection or remit all or part of any civil penalty imposed under this section on condition that the employer or person pays the any compensation due and complies with G.S. 97‑93."

 

INSURANCE REGULATORY FEE

SECTION 22.2.  The percentage rate to be used in calculating the insurance regulatory charge under G.S. 58‑6‑25 is six and one‑half percent (6.5%) for the 2019 calendar year.

 

PART XXIII. BIPARTISAN STATE BOARD OF ELECTIONS AND ETHICS ENFORCEMENT

 

HAVA FUNDS

SECTION 23.1.  By October 1, 2018, the Bipartisan State Board of Elections and Ethics Enforcement (State Board) shall submit a status report on the use of 2018 Help America Vote Act (HAVA) funds to the Joint Legislative Oversight Committee on General Government and the Joint Legislative Elections Oversight Committee. The report shall include a budget and a time frame for using the HAVA funds for security upgrades and other necessary improvements. Additionally, the State Board shall report on any remaining HAVA funds awarded from prior federal grants.

 

PART XXIV.GENERAL ASSEMBLY

 

CHILD WELL‑BEING TRANSFORMATION COUNCIL

SECTION 24.1.(a)  Article 82 of Chapter 143 of the General Statutes is repealed.

SECTION 24.1.(b)  North Carolina Child Well‑Being Transformation Council Creation; Purpose; Findings. – There is established the North Carolina Child Well‑Being Transformation Council (Children's Council) for the purpose of coordinating, collaborating, and communicating among agencies and organizations involved in providing public services to children. The welfare of North Carolina's children is a priority. There are many public and private agencies and organizations across the State involved with promoting the welfare of children and protecting them from harm, such as those involving child care, education, health care, social services, and juvenile justice. Though these agencies and organizations provide important services, they often fail to collaborate, coordinate, and communicate about those services. A more systematic and coordinated approach to services will help ensure that the State achieves the best possible outcomes for children.

SECTION 24.1.(c)  Membership. – The Children's Council shall be located administratively in the General Assembly. The Children's Council shall consist of 25 members. In making appointments, each appointing authority shall select members who have appropriate experience and knowledge of the issues to be examined by the Children's Council and shall strive to ensure members are appointed who represent the geographical, political, gender, and racial diversity of this State. The Children's Council members shall be appointed on or after September 1, 2018, as follows:

(1)        Six members shall be appointed by the President Pro Tempore of the Senate, as follows:

a.         Two shall be members of the Senate.

b.         One shall be a representative from the Administrative Office of the Courts.

c.         One shall be a representative from a child welfare private provider organization.

d.         One shall be a representative from The Duke Endowment.

e.         One shall be a representative from the North Carolina Pediatric Society.

(2)        Six members shall be appointed by the Speaker of the House of Representatives, as follows:

a.         Two shall be members of the House of Representatives.

b.         One shall be a representative from the Department of Public Instruction.

c.         One shall be a representative from Indigent Defense Services.

d.         One shall be a representative from the United States military.

e.         One shall be a representative of the Hospital Association.

(3)        Thirteen members shall be appointed by the Governor, as follows:

a.         One shall be a representative from the Department of Health and Human Services, Division of Child Development and Early Education.

b.         One shall be a representative from the Department of Health and Human Services, Division of Social Services.

c.         One shall be a representative from the Department of Public Safety, Division of Juvenile Justice.

d.         One shall be a representative from the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.

e.         One shall be a representative from the Guardian ad Litem program.

f.          One shall be a representative from Disability Rights NC.

g.         One shall be a representative from a local management entity/managed care organization (LME/MCO).

h.         Two shall be representatives from the Department of Health and Human Services, Division of Public Health, one with expertise in substance abuse disorders and one with expertise in children's health.

i.          One shall be a representative from the Department of Health and Human Services, Division of Medical Assistance.

j.          One shall be a representative from Children's Advocacy Centers of North Carolina.

k.         One shall be a representative from the North Carolina Child Fatality Task Force.

l.          One shall be a director of a county department of social services.

SECTION 24.1.(d)  Vacancies. – A vacancy shall be filled within 30 days by the authority making the initial appointment.

SECTION 24.1.(e)  Organization. – The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Children's Council, who shall serve for a term of one year. The Children's Council shall meet quarterly each year upon the call of the cochairs. A majority of the membership of the Children's Council shall constitute a quorum. No action may be taken except by a majority vote at a meeting at which a quorum is present. The Open Meetings Law, Article 33C of Chapter 143 of the General Statutes, and the Public Records Act, Chapter 132 of the General Statutes, shall apply to the Children's Council.

SECTION 24.1.(f)  Powers and Duties. – The Children's Council shall direct its focus on the following initiatives:

(1)        Mapping the network of child‑serving agencies and organizations in the State.

(2)        Cataloging examples of failures in coordination, collaboration, and communication in the context of child welfare.

(3)        Reviewing the work of bodies similar to the Children's Council operating in other states to identify promising practices and focus areas for the Children's Council's work.

(4)        Monitoring changes in the social services and child welfare system associated with reform and regional supervision.

(5)        Identifying gaps in coordination, collaboration, and communication related to all publicly funded child serving programs.

(6)        Recommending changes in law, policy, or practice necessary to remedy gaps or problems impacting coordination, collaboration, and communication among publicly funded child‑serving agencies.

SECTION 24.1.(g)  Staff. – The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Children's Council in its work, including, after consultation with the Council, an individual who has recognized expertise in matters related to children's welfare to support the work of the Council. Upon the direction of the Legislative Services Commission, the Director of Legislative Assistants of the Senate and of the House of Representatives shall assign clerical staff to the Children's Council. Subject to approval of the Legislative Services Commission, the Children's Council may hold meetings in the Legislative Complex.

SECTION 24.1.(h)  Subsistence. – Members of the Children's Council shall receive subsistence and travel expenses as provided in G.S. 120‑3.1, 138‑5, and 138‑6.

SECTION 24.1.(i)  Reporting; Termination. – By June 30, 2019, the Children's Council shall submit an interim report to the chairs of the Senate Appropriations Committee on Health and Human Services, the chairs of the House of Representatives Appropriations Committee on Health and Human Services, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division. The report shall include a summary of the Council's work for the previous year, any findings and recommendations for change, and a work plan for the upcoming year. By June 30, 2020, the Children's Council shall submit a final report and shall terminate on that date.

SECTION 24.1.(j)  The School of Government at the University of North Carolina at Chapel Hill shall do all of the following:

(1)        Convene the first meeting of the Children's Council no later than October 31, 2018, and host the first four meetings of the Children's Council.

(2)        Facilitate the work of the Children's Council during the meetings. The Children's Council shall focus on the initiatives outlined in subsection (f) of this section.

(3)        Provide necessary clerical and administrative support for the meetings in collaboration with clerical staff assigned to the Children's Council pursuant to subsection (g) of this section; conduct research and provide technical assistance, as appropriate; and assist with the preparation of the Children's Council first report due on June 30, 2019.

SECTION 24.1.(k)  Subsection (a) of this section becomes effective June 30, 2018.

 

PART XXV. OFFICE OF THE GOVERNOR [RESERVED]

 

PART XXVI. OFFICE OF STATE BUDGET AND MANAGEMENT

 

RESULTS FIRST PROJECT/PERFORMANCE‑BASED MANAGEMENT IN STATE BUDGETING

SECTION 26.1.(a)  Section 26.3 of S.L. 2017‑57 is amended by adding a new subsection to read as follows:

"SECTION 26.3.(d)  By October 1, 2018, the Office of State Budget and Management, in consultation with Results First partner agencies and the Pew‑MacArthur Results First Initiative, shall develop and publish descriptive, formal definitions for tiered‑levels of evidence. Each definition shall outline the criteria needed to qualify for each tier of evidence. The Office of State Budget and Management shall also identify which program or service areas will be expected to include evidence and research to support budget proposals. The definitions may be periodically updated as needed. The definitions, and any subsequent updates, shall be included in the annual report required by subsection (c) of this section."

SECTION 26.1.(b)  The Office of State Budget and Management shall research best practices in performance management from leading states, academia, and nongovernmental organizations and implement a pilot performance management initiative that is designed to inform the budget process and operational management of State programs. By November 30, 2018, the Office of State Budget and Management shall report to the Joint Legislative Oversight Committee on General Government on the progress of implementing the pilot. The report may include recommendations for additional legislation. For purposes of this section, the term "performance management" means an ongoing process of measuring, evaluating, and adjusting actions to improve outcomes.

 

AMEND PURPOSES FOR FUNDS APPROPRIATED FOR STANLY COMMUNITY COLLEGE

SECTION 26.2.(a)  Notwithstanding any provision of S.L. 2017‑57, or of the Committee Report described in Section 39.2 of that act, to the contrary, the sum of four hundred fifty thousand dollars ($450,000) in nonrecurring funds for the 2017‑2018 fiscal year appropriated for Stanly Community College for a culinary arts facility shall be transferred to the Office of State Budget and Management. These funds shall be allocated for the 2018‑2019 fiscal year as follows:

(1)        One hundred thousand dollars ($100,000) for the Center Rural Fire Department, Station 56.

(2)        One hundred fifty thousand dollars ($150,000) for the Walter B. Hill American Legion Post 76, Albemarle (Stanly County Fair Grounds).

(3)        Fifty thousand dollars ($50,000) to the Stanly County Board of Education for Oakboro Choice STEM School.

(4)        Fifty thousand dollars ($50,000) for the East Side Volunteer Fire Department, Station 65.

(5)        Fifty thousand dollars ($50,000) for the Oakboro Rural Volunteer Fire Department, Station 44.

(6)        Fifty thousand dollars ($50,000) for the Aquadale Rural Volunteer Fire Department, Station 50.

SECTION 26.2.(b)  This section becomes effective June 30, 2018.

 

STATE BUDGET AND MANAGEMENT SPECIAL PROVISIONS

SECTION 26.3.  Of the funds appropriated in this act to the Office of State Budget and Management, Special Appropriations, the sum of three million one hundred sixty‑five thousand three hundred seven dollars ($3,165,307) in nonrecurring funds for the 2018‑2019 fiscal year shall be allocated as follows:

(1)        To provide grants‑in‑aid to the following local fire departments:

a.         $50,000 to Beaver Dam Volunteer Fire Department, Incorporated.

b.         $50,000 to Bethany Rural Fire Department, Inc.

c.         $2,500 to Britts Township Volunteer Fire Department, Inc.

d.         $20,000 to Burnsville Volunteer Fire Department, Inc.

e.         $150,000 to Center Rural Fire and Rescue Department, Inc.

f.          $3,000 to Cerro Gordo Volunteer Fire Department and Rescue Squad.

g.         $3,000 to Chadbourn Fire and Rescue, Inc.

h.         $100,000 to Cullowhee Volunteer Fire Department, Inc.

i.          $2,500 to Deep Branch Volunteer Fire Department, Inc.

j.          $2,500 to East Howellsville Volunteer Fire Department, Inc.

k.         $3,000 to Evergreen Volunteer Fire Department.

l.          $2,269 to Fair Bluff Fire Department and Rescue Squad, Inc.

m.        $50,000 to Godwin‑Falcon Fire Department, Inc.

n.         $20,000 to Gulledge Volunteer Fire Department, Inc.

o.         $100,000 to the City of Lawndale for the Volunteer Fire Department.

p.         $20,000 to the Town of Lilesville for the Lilesville Volunteer Fire Department.

q.         $203,000 to the City of Lincolnton for the Lincolnton Fire Department.

r.          $32,500 to Lyman Volunteer Fire Department, Inc.

s.          $3,000 to Nakina Fire & Rescue Squad, Inc.

t.          $35,000 to Onslow County for the Nine Mile Volunteer Fire Department.

u.         $3,000 to Old Dock/Cyprus Creek Volunteer Fire Department and Auxiliary.

v.         $20,000 to Town of Peachland for the Peachland Volunteer Fire Department.

w.        $2,500 to Pembroke Rural Voluntary Fire Department, Inc.

x.         $50,000 to Piney Creek Volunteer Fire Department, Incorporated.

y.         $20,000 to the Town of Polkton for the Polkton Volunteer Fire Department.

z.         $2,500 to the Town of Proctorville for the Proctorville Volunteer Fire Department.

aa.        $15,000 to Prospect Volunteer Fire Department, Inc., in Maxton, NC.

bb.       $3,000 to the Rennert Volunteer Fire Department.

cc.        $3,000 to Roseland Volunteer Fire Department, Inc.

dd.       $50,000 to Stedman Volunteer Fire Department, Inc.

ee.        $2,269 to Tabor City Voluntary Fire Department Auxiliary, Inc.

ff.        $50,000 to the Town of Unionville for the Unionville Volunteer Fire Department.

gg.       $50,000 to Wade Community Volunteer Fire Department.

hh.       $2,269 to Williams Township Community Volunteer Fire Department.

(2)        To provide grants‑in‑aid to the following local governments:

a.         $350,000 to Davie County for renovation of an old county hospital in Mocksville.

b.         $10,000 to Robeson County for the Allenton Community Building.

c.         $50,000 to the Town of Apex for sidewalk completion on Laura Duncan Road.

d.         $3,000 to the Town of Boardman for Town Hall renovations.

e.         $15,000 to the Town of Bunn for sidewalks.

f.          $4,000 to the Town of Cerro Gordo for office repairs and upgrading computers and billing systems.

g.         $35,000 to the Town of Four Oaks for land purchase.

h.         $30,000 to the Town of Franklinton for road improvements.

i.          $15,000 to the Town of Lumber Bridge for Town Hall improvements.

j.          $125,000 to the Town of Matthews for improvements of Crestdale Road.

k.         $15,000 to the Town of Maxton for a learning center.

l.          $150,000 to the Town of Maysville for Town Hall expansion.

m.        $300,000 to the Town of North Wilkesboro for the intersection of 6th and B Street.

n.         $190,000 to the Town of Rolesville:

1.         $150,000 for the sidewalk near Rolesville High School.

2.         $40,000 for general sidewalks.

o.         $32,500 to the Town of Warsaw for public purposes.

(3)        To provide law enforcement grants‑in‑aid to the following local governments:

a.         $100,000 to the Bladen County Sheriff's Department for a law enforcement training center.

b.         $15,000 to the Bryson City Police Department for a K‑9 transport unit.

c.         $65,000 to the Macon County Sheriff's Department for in‑car cameras.

d.         $10,000 for the Ashe County Sheriff's Department to fight opioid abuse.

e.         $10,000 to the Brunswick County Sheriff's Department to fight opioid abuse.

f.          $10,000 to the Cleveland County Sheriff's Department to fight opioid abuse.

g.         $10,000 to the Columbus County Sheriff's Department to fight opioid abuse.

h.         $10,000 to the Rockingham County Sheriff's Department to fight opioid abuse.

i.          $10,000 to the Rutherford County Sheriff's Department to fight opioid abuse.

j.          $10,000 to the Swain County Sheriff's Department to fight opioid abuse.

(4)        To provide emergency management grants‑in‑aid to the following local governments:

a.         $15,000 to Haywood County for emergency management.

b.         $15,000 to Jackson County for emergency management.

c.         $100,000 to Rockingham County for EMS equipment replacements and upgrades.

d.         $55,000 to the Town of Lake Waccamaw for a rescue vessel.

(5)        To provide grants‑in‑aid to the following nonprofit organizations:

a.         $7,500 to All the King's Children Foundation.

b.         $5,000 to Colors of Life Community Development.

c.         $35,000 to the Forsyth Jail and Prison Ministries.

d.         $100,000 to Onslow County for a YMCA.

e.         $5,000 to Parkton Ruritan Club, Inc.

f.          $25,000 to Project Healing Waters Fly Fishing, Inc., North Carolina Region.

g.         $30,000 to Dare County for Special Olympics.

h.         $20,000 to The Greater Bath Foundation.

i.          $7,500 to Men of Faith, Integrity and Character.

j.          $40,000 to Lenoir County United Way (Lenoir‑Greene United Way).

k.         $5,000 to the United Saddletree Center for repairs and upgrades.

 

PART XXVI‑A. OFFICE OF STATE HUMAN RESOURCES

 

OFFICE OF STATE HUMAN RESOURCES/CRIMINAL RECORD CHECKS FOR PROSPECTIVE TEMPORARY EMPLOYEES

SECTION 26A.1.  Subpart D of Part 4 of Article 13 of Chapter 143B of the General Statutes is amended by adding a new section to read as follows:

"§ 143B‑968.  Criminal record checks for the Office of State Human Resources.

(a)        The Department of Public Safety may provide to the Office of State Human Resources from the State and National Repositories of Criminal Histories the criminal history of any prospective temporary employee of a State agency or department if a criminal record check is a requirement for employment by the agency or department with which the individual would be temporarily assigned. The Office of State Human Resources shall provide to the Department of Public Safety, along with the request, the fingerprints of the prospective temporary employee, a form signed by the prospective temporary employee consenting to the criminal record check and use of fingerprints and other identifying information required by the State and National Repositories, and any additional information required by the Department of Public Safety. The fingerprints of the prospective employee shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The Office of State Human Resources shall keep all information obtained pursuant to this section confidential.

(b)        The Department of Public Safety may charge a fee to offset the cost incurred by it to conduct a criminal record check under this section. The fee shall not exceed the actual cost of locating, editing, researching, and retrieving the information. If the Department of Public Safety charges the Office of State Human Resources a fee for conducting the criminal record check, the agency or department with which the individual would be temporarily assigned shall reimburse the Office of State Human Resources for the fee charged."

 

OSHR/TEMPORARY EMPLOYMENT NEEDS OF CABINET & COUNCIL OF STATE AGENCIES

SECTION 26A.2.  G.S. 126‑6.3 reads as rewritten:

"§ 126‑6.3.  Temporary employment needs of State agencies shall be met through Cabinet and Council of State agencies; use of the Temporary Solutions Program.

(a)        Use of Temporary Solutions Required.Required for Cabinet Agencies. – Notwithstanding G.S. 126‑5 or any other provision of law, all State Cabinet agencies that utilize temporary employees to perform work that is not information technology‑related shall employ them through the Temporary Solutions Program administered by the Office of State Human Resources. The Director of the Office of State Human Resources may create exceptions to this requirement when doing so would be in the best interests of the State in the sole discretion of the Director. An exception shall be invalid unless it is in writing. Council of State agencies may use the Temporary Solutions Program in the discretion of the agency.

(b)        Compliance Monitoring. – The Office of State Human Resources shall monitor the employment of temporary employees by Cabinet and Council of State agencies subject to this section and shall report biannually to the Joint Legislative Oversight Committee on General Government and to the Fiscal Research Division on agency compliance with this section and policies and rules adopted pursuant to it. Each State agency granted an exception under this section from using the Temporary Solutions Program and any Council of State agency that elected to not use the Temporary Solutions Program shall record the time worked by each temporary employee in the agency, including the number of hours worked per week, number of months worked, and the amount of time the employee was not employed after 11 consecutive months of service with the agency. To the extent possible for temporary employees, agencies shall use BEACON, or the State payroll system that supersedes BEACON, for payroll purposes. If it is not feasible for an agency to use BEACON, or the superseding system for payroll purposes, the agency shall report the information required by this section to the Office of State Human Resources in accordance with guidelines and requirements established by the Director of Temporary Solutions.

(c)        State Agency Defined.Definitions. – For purposes of this section, "State agency" means athe following definitions shall apply:

(1)        Cabinet agency. – A unit of the executive branch of State government, such as a department, an institution, a division, a commission, a board, or a council, regardless of whether or not the agency council that is under the control of the Governor. The term does not include an agency that is under the control of an official who is part a member of the Council of State.

(2)        Council of State agency. – An agency that is under the control of an official who is a member of the Council of State."

 

MARKET RATE STUDY FOR AREA DIRECTOR SALARY RANGE REVISIONS

SECTION 26A.3.(a)  No later than December 1, 2018, the Office of State Human Resources shall recommend to the State Human Resources Commission a revision to the salary range established by the Commission under Article 3 of Chapter 126 of the General Statutes for area directors, as defined in G.S. 122C‑3. In forming its recommendation, the Office of State Human Resources shall use funds available to hire an outside consultant to conduct a market compensation study of organizations nationwide with similar functions as the local management entities/managed care organizations (LME/MCOs) and of similar size, including number of covered lives, annual service expenditures, and geographic service areas. The market compensation study shall include both public and not‑for‑profit managed care organizations. In forming its recommendation, the Office of State Human Resources shall seek input from the Secretary of the Department of Health and Human Services and the LME/MCO area boards.

SECTION 26A.3.(b)  The State Human Resources Commission shall use the results of the market compensation study conducted pursuant to subsection (a) of this section to fulfill its responsibility for approving area director salary ranges under G.S. 126‑9.

 

PART XXVII. STATE AUDITOR

 

OFFICE OF STATE AUDITOR/STATE AGENCIES REQUIRED TO PREPARE FINANCIAL STATEMENTS PRIOR TO AUDIT

SECTION 27.1.  G.S. 147‑64.6 reads as rewritten:

"§ 147‑64.6.  Duties and responsibilities.

(c)        The Auditor shall be responsible for the following acts and activities:

(3)        The Auditor, on the Auditor's own initiative and as often as the Auditor deems necessary, or as requested by the Governor or the General Assembly, shall, to the extent deemed practicable and consistent with the Auditor's overall responsibility as contained in this act, make or cause to be made audits of all or any part of the activities of the State agencies. Each agency or department receiving a financial statement audit by the Auditor under this subdivision shall prepare a financial statement and supplementary information in the format required by the Auditor. Financial statements and supplementary information prepared as required by this subdivision shall be completed and submitted to the Auditor not later than 60 days after the deadline for the agency's or department's Comprehensive Annual Financial Report submission as established by the State Controller.

…."

 

PART XXVIII. HOUSING FINANCE AGENCY [RESERVED]

 

PART XXIX. DEPARTMENT OF THE SECRETARY OF STATE [RESERVED]

 

PART XXX. OFFICE OF LT. GOVERNOR [RESERVED]

 

PART XXXI. DEPARTMENT OF ADMINISTRATION

 

DOA/CONTRACT MANAGEMENT TRAINING FOR CERTAIN STATE EMPLOYEES

SECTION 31.1.(a)  G.S. 143‑49 reads as rewritten:

"§ 143‑49.  Powers and duties of Secretary.

The Secretary of Administration has the power and authority, and it is the Secretary's duty, subject to the provisions of this Article:

(15)      To work in conjunction with the Office of State Human Resources, the Division of Purchase and Contract, and the University of North Carolina School of Government to develop a rigorous contract management training and certification program for State employees. Certification in the contract management training program is mandatory for all State employees who are responsible for awarding contracts or monitoring contract compliance. The program shall be administered by the Office of State Human Resources.

…."

SECTION 31.1.(b)  Of the funds appropriated in this act to the Department of Administration, the sum of two hundred sixty‑six thousand dollars ($266,000) for the 2018‑2019 fiscal year shall be used to develop and implement a contracting specialist training program for the Department of Health and Human Services. The Department of Administration shall consult with the University of North Carolina School of Government (SOG) in developing and implementing the program. The Department of Administration shall not use these funds for any purposes other than the following:

(1)        One hundred thousand dollars ($100,000) in nonrecurring funds to design curriculum for a contracting specialist training program based on the National Contract Management Association's Contract Management Standard, or the guiding principles of another nationally recognized professional organization for public sector contract management professionals. The curriculum must be designed specifically for Department of Health and Human Services employees with responsibility for contract management, contract administration, or both.

(2)        One hundred sixty‑six thousand dollars ($166,000) in recurring funds for two full‑time equivalent positions within the Department of Administration, Division of Purchase and Contract, dedicated to providing employees identified by the Department of Health and Human Services with instructor‑led training for the contracting specialist training program curriculum developed pursuant to subdivision (1) of this section.

SECTION 31.1.(c)  By November 1, 2018, the Department of Administration shall (i) report to the Joint Legislative Oversight Committee on General Government on State agencies' compliance with the requirements of subsection (a) of this section and (ii) report to the Joint Legislative Oversight Committee on General Government and the Joint Legislative Oversight Committee on Health and Human Services on the development and implementation of a contracting specialist training program for the Department of Health and Human Services as required by subsection (b) of this section.

 

DOA/MANAGE STATE PORTFOLIO OF REAL PROPERTY

SECTION 31.2.(a)  The Department of Administration shall coordinate with other State agencies to use existing geographic information systems and information technology systems in developing a real estate information system to manage the State's owned and leased real property portfolio in the manner required by G.S. 143‑341.2. By November 1, 2018, the Department shall report to the Joint Legislative Oversight Committee on General Government on its progress in implementing the provisions of this subsection.

SECTION 31.2.(b)  Notwithstanding the provisions of G.S. 66‑58.12(c), the sum of one million dollars ($1,000,000) in nonrecurring funds for the 2018‑2019 fiscal year transferred in this act from the E‑Commerce Fund in the Department of Administration Budget Code 24100, Fund Code 2514, to Department of Administration Budget Code 14100, Fund Code 1412, shall be used to develop a real estate information system for the purposes authorized by subsection (a) of this section.

 

PART XXXII. DEPARTMENT OF REVENUE

 

DOR TAX FRAUD ANALYTICS

SECTION 32.1.  Section 32.2 of S.L. 2017‑57 reads as rewritten:

"SECTION 32.2.(a)  Of the funds appropriated in this act to the Department of Revenue, the sum of four million four hundred thousand dollars ($4,400,000) in nonrecurring funds for the 2017‑20182018‑2019 fiscal year shall be used to continue and expand the Department's tax fraud analysis contract. These funds shall be used as follows:

(1)        $1,300,000 to expand and enhance eNC3.

(2)        $2,000,000$3,300,000 to pay for fraud detection analytics.analytics and information reporting.

(3)        $1,100,000 for hosting infrastructure.

"SECTION 32.2.(b)  The Department of Revenue shall continue to coordinate with the Government Data Analytics Center (GDAC) and utilize the subject matter expertise and technical infrastructure available through existing GDAC public‑private partnerships for fraud detection analytics and infrastructure."

 

PART XXXIII. OFFICE OF STATE CONTROLLER [RESERVED]

 

PART XXXIV. DEPARTMENT OF TRANSPORTATION

 

CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATIONS

SECTION 34.1.(a)  Subsections (b) and (c) of Section 34.1 of S.L. 2017‑57 are repealed.

SECTION 34.1.(b)  The General Assembly authorizes and certifies anticipated revenues for the Highway Fund as follows:

For Fiscal Year 2019‑2020                             $ 2,288.5 million

For Fiscal Year 2020‑2021                             $ 2,376.7 million

For Fiscal Year 2021‑2022                             $ 2,415.6 million

For Fiscal Year 2022‑2023                             $ 2,449.6 million

SECTION 34.1.(c)  The General Assembly authorizes and certifies anticipated revenues for the Highway Trust Fund as follows:

For Fiscal Year 2019‑2020                             $ 1,576.4 million

For Fiscal Year 2020‑2021                             $ 1,604.1 million

For Fiscal Year 2021‑2022                             $ 1,631.5 million

For Fiscal Year 2022‑2023                             $ 1,669.4 million

SECTION 34.1.(d)  The Department of Transportation, in collaboration with the Office of State Budget and Management, shall develop a four‑year revenue forecast. The first fiscal year in the four‑year revenue forecast shall be the 2024‑2025 fiscal year. The four‑year revenue forecast developed under this subsection shall be used (i) to develop the four‑year cash flow estimates included in the biennial budgets, (ii) to develop the Strategic Transportation Improvement Program, and (iii) by the Department of the State Treasurer to compute transportation debt capacity.

 

CONTINGENCY FUNDS

SECTION 34.2.(a)  Section 34.2(b) of S.L. 2017‑57 reads as rewritten:

"SECTION 34.2.(b)  Of the funds appropriated in this act to the Department of Transportation, twelve million dollars ($12,000,000) for each fiscal year of the 2017‑2019 fiscal biennium shall be allocated statewide for rural or small urban highway improvements and related transportation enhancements to public roads and public facilities, industrial access roads, railroad infrastructure, and spot safety projects, including pedestrian walkways that enhance highway safety. Projects funded pursuant to this subsection require prior approval by the Secretary of Transportation. Funds allocated under this subsection shall not revert at the end of the applicable fiscal year but shall remain available until expended. The use of funds that do not revert under this subsection is not restricted to the fiscal year in which the funds were allocated."

SECTION 34.2.(b)  This section becomes effective June 30, 2018.

 

DOT PILOT PROGRAM/FUNDING AND OVERSIGHT OF TIME‑CRITICAL ECONOMIC DEVELOPMENT PROJECT

SECTION 34.3.(a)  Limited Authority for Time‑Critical Economic Development Project. – Notwithstanding any provision of law to the contrary, the Department of Transportation may let, administer, and oversee any contract related to the site preparation and design of the non‑transportation portion of a project meeting all of the following criteria:

(1)        The project is located in Edgecombe County.

(2)        The project received a grant under the Job Development Investment Grant Program established under G.S. 143B‑437.52.

(3)        The Community Economic Development Agreement entered into pursuant to G.S. 143B‑437.57 for the project requires that the business invest at least five hundred million dollars ($500,000,000) in private funds and create at least 800 eligible positions.

The Department shall only let contracts under this subsection in accordance with the requirements of Article 2 of Chapter 136 of the General Statutes. The authority set forth in this subsection expires July 1, 2020.

SECTION 34.3.(b)  Source of Funding for Costs. – Of the funds appropriated in this act to the General Maintenance Reserve in the Highway Fund, the Department of Transportation may use up to the sum of thirty million dollars ($30,000,000) in nonrecurring funds to cover costs incurred by the Department in utilizing the authority set forth in subsection (a) of this section.

SECTION 34.3.(c)  Report. – By January 15, 2019, the Department of Transportation shall submit a report to the Joint Legislative Transportation Oversight Committee, the Joint Legislative Oversight Committee on Governmental Operations, and the Fiscal Research Division of the General Assembly detailing the use of funds under subsection (b) of this section. The report shall include the total amount of funds expended and the types of costs for which the funds were or are going to be expended.

SECTION 34.3.(d)  General Fund Repayment Schedule. – For each fiscal year of the 2021‑2023 and 2023‑2025 fiscal biennia, a sum equal to twenty‑five percent (25%) of the funds used by the Department of Transportation under subsection (b) of this section is appropriated in nonrecurring funds from the General Fund to the General Maintenance Reserve in the Highway Fund to be used for any purpose allowable under law for funds in the General Maintenance Reserve.

SECTION 34.3.(e)  Effective Date. – Subsection (a) of this section is effective when it becomes law and applies retroactively to July 1, 2017. Subsection (b) of this section becomes effective July 1, 2018. The remainder of this section is effective when it becomes law.

 

COMPENSATION TO NC STATE FOR DOT I‑440 PROJECT

SECTION 34.4.  Notwithstanding any provision of Subchapter II of Chapter 146 of the General Statutes to the contrary, proceeds derived from compensation received by the State for any impact from the I‑440 Expansion Project (STIP Project No. U‑2719) on improvements to land owned, assigned to, or under the supervision and control of North Carolina State University (University) or an associated entity, as defined in the UNC Policy Manual 600.2.5.2[R] as adopted June 8, 2015, shall be deposited in the fund, budget code, or account of the University or associated entity, respectively. Funds deposited pursuant to this section shall be used to remedy the impact from the I‑440 Expansion Project and are appropriated for the purpose set forth in this section. Funds deposited pursuant to this section shall not revert but shall remain available until expended in accordance with the purpose set forth in this section.

 

TOLL ROAD AND LANE CLARIFICATIONS

SECTION 34.5.(a)  G.S. 136‑89.188 reads as rewritten:

"§ 136‑89.188.  Use of revenues.

(a)        Revenues derived from a Turnpike Projects Project authorized under this Article shall be used only for the following:following costs associated with the Project from which the revenue was derived or a contiguous toll facility:

(1)        Authority administration costs.

(2)        Turnpike Project development,Development, right‑of‑way acquisition, design, construction, expansion, operation, maintenance, reconstruction, rehabilitation, and replacement.replacement costs.

(3)        Debt service on the Authority's revenue bonds or related purposes such as the establishment of debt service reserve funds.

(4)        Debt service, debt service reserve funds, and other financing costs related to any of the following:

a.         A financing undertaken by a private entity under a partnership agreement with the entity for a Turnpike the Project.

b.         Private activity bonds issued under law related to a Turnpike the Project.

c.         Any federal or State loan, line of credit, or loan guarantee relating to a Turnpike the Project.

(5)        A return on investment of any private entity under a partnership agreement with the entity for a Turnpike the Project.

(6)        Any other uses granted to a private entity under a partnership agreement with the entity for a Turnpike the Project.

(b)        The Authority may use up to one hundred percent (100%) of the revenue derived from a Turnpike Project for debt service on the Authority's revenue bonds or for a combination of debt service and operation and maintenance expenses of the Turnpike Projects.Project.

(c)        The Authority shall use not more than five percent (5%) of total revenue derived from all Turnpike Projects for Authority administration costs.

(d)       Notwithstanding the provisions of subsections (a) and (b) of this section, toll revenues generated from a converted segment of the State highway system previously planned for operation as a nontoll facility shall only be used for the funding or financing of the right of way acquisition, construction, expansion, operations, maintenance, and Authority administration costs associated with the converted segment or a contiguous toll facility."

SECTION 34.5.(b)  G.S. 136‑89.199 reads as rewritten:

"§ 136‑89.199.  Designation of high‑occupancy toll and managed lanes.

(a)        Authority. – Notwithstanding any other provision of this Article, the Authority may designate one or more lanes of any highway, or portion thereof, within the State, including lanes that may previously have been designated as HOV lanes under G.S. 20‑146.2, as high‑occupancy toll (HOT) or other type of managed lanes; provided, however, that such designation shall not reduce the number of existing non‑toll general purpose lanes. In making such designations, the Authority shall specify the high‑occupancy requirement or other conditions for use of such lanes, which may include restricting vehicle types, access controls, or the payment of tolls for vehicles that do not meet the high‑occupancy requirements or conditions for use.

(b)        Reporting. – At least 90 days prior to the letting of a contract for the designation of a HOT lane or other type of managed lane under subsection (a) of this section, the Authority shall submit a report to the Joint Legislative Transportation Oversight Committee detailing (i) the reasoning for the designation of the HOT lane or other type of managed lane and (ii) the terms of the contract that will be let. The reporting requirement in this subsection does not apply to any project proposed by the Authority that is subject to the reporting requirement set forth in G.S. 136‑89.183(a)(2)."

SECTION 34.5.(c)  G.S. 136‑189.11(f)(3) reads as rewritten:

"(3)      Funds obtained through highway tolling. – Upon authorization to construct a project with funding from toll revenue, the Department shall make available for allocation an amount equal to one‑half of the project construction cost derived from toll revenue bonds. Upon authorization to construct a toll project in which no project construction cost is derived from toll revenue bonds, the Department shall make available for allocation an amount equal to one‑half of the revenue expected from the project over the first 10 years of the project, less operations costs, as set forth in the Investment Grade Traffic and Revenue Study. The amount made available for allocation to other eligible highway projects shall not exceed two hundred million dollars ($200,000,000) of the capital construction funding directly attributable to the highway toll revenues committed in the Investment Grade Traffic and Revenue Study, for a project for which funds have been committed on or before July 1, 2015. The amount made available for allocation to other eligible highway projects shall not exceed one hundred million dollars ($100,000,000) of the capital construction funding directly attributable to the highway toll revenues committed in the Investment Grade Traffic and Revenue Study, for a project for which funds are committed after July 1, 2015. If the toll project is located in one or more Metropolitan Planning Organization or Rural Transportation Planning Organization boundaries, based on the boundaries in existence at the time of letting of the project construction contract, the bonus allocation shall be distributed proportionately to lane miles of new capacity within the Organization's boundaries. The Organization shall apply the bonus allocation only within those counties in which the toll project is located."

SECTION 34.5.(d)  Subsection (a) of this section is effective when it becomes law and applies to revenues derived on or after that date. Subsection (b) of this section is effective when it becomes law and applies to projects whose contracts are advertised on or after that date. The remainder of this section is effective when it becomes law.

 

CLARIFY STI LAW

SECTION 34.6.(a)  G.S. 136‑189.11(d)(1)b. reads as rewritten:

"b.        Project cap. – No more than ten percent (10%) of the funds projected to be allocated to the Statewide Strategic Mobility category over any five‑year period may be assigned to any contiguous project or group of projects in the same corridor within a Highway Division or within adjoining Highway Divisions."

SECTION 34.6.(b)  G.S. 136‑189.11(f)(3), as amended by Section 34.5 of this act, reads as rewritten:

"(3)      Funds obtained through highway tolling. – Upon authorization to construct a project with funding from toll revenue, the Department shall make available for allocation an amount equal to one‑half of the project construction cost derived from toll revenue bonds. Upon authorization to construct a toll project in which no project construction cost is derived from toll revenue bonds, the Department shall make available for allocation an amount equal to one‑half of the revenue expected from the project over the first 10 years of the project, less operations costs, as set forth in the Investment Grade Traffic and Revenue Study. The amount made available for allocation to other eligible highway projects shall not exceed two hundred million dollars ($200,000,000) of the capital construction funding directly attributable to the highway toll revenues committed in the Investment Grade Traffic and Revenue Study, for a project for which funds have been committed on or before July 1, 2015. The amount made available for allocation to other eligible highway projects shall not exceed one hundred million dollars ($100,000,000) of the capital construction funding directly attributable to the highway toll revenues committed in the Investment Grade Traffic and Revenue Study, for a project for which funds are committed after July 1, 2015. If the toll project is located in one or more Metropolitan Planning Organization or Rural Transportation Planning Organization boundaries, based on the boundaries in existence at the time of letting of the project construction contract, the bonus allocation shall be distributed proportionately to lane miles of new capacity within the Organization's boundaries. The Organization shall apply the bonus allocation only within those counties in which the toll project is located. Except for tolls removed pursuant to G.S. 136‑89.196, if a toll is removed or a toll is not implemented, any funds made available for allocation or allocated under this subdivision shall be withheld by the Department or repaid to the Department, as applicable. Any funds withheld or repaid under this subdivision may be reallocated according to the requirements of this subdivision."

SECTION 34.6.(c)  G.S. 136‑189.11(c) is amended by adding a new subdivision to read:

"(4)      State funds used to match federal Congestion Mitigation and Air Quality Improvement (CMAQ) program funds apportioned to the State pursuant to 23 U.S.C. § 104(b)(2) and 23 U.S.C. § 149 for projects on the State highway system that improve the safety, mobility, and operational characteristics of the State highway system for motorists."

SECTION 34.6.(d)  G.S. 136‑189.11(e)(1) reads as rewritten:

"(1)      Limitation on variance. – The Department, in obligating funds in accordance with this section, shall ensure that the percentage amount obligated to Statewide Strategic Mobility Projects, Regional Impact Projects, and Division Need Projects does not vary by more than tenfifteen percent (10%)(15%) over any five‑year period and ten percent (10%) over any 10‑year period from the percentage required to be allocated to each of those categories by this section. Funds obligated among distribution regions or divisions pursuant to this section may vary up to tenfifteen percent (10%)(15%) over any five‑year period.period and ten percent (10%) over any 10‑year period."

SECTION 34.6.(e)  G.S. 136‑189.11(d)(3)b.4. reads as rewritten:

"4.        Projects requested from the Department in support of a time‑critical job creation opportunity, when the opportunity would be classified as transformationaltransformative under the Job Development Investment Grant program established pursuant to G.S. 143B‑437.52, provided that the total State investment in each fiscal year for all projects funded under this sub‑subdivisionsub‑sub‑subdivision in any five‑year period shall not exceed tenone hundred million dollars ($10,000,000)($100,000,000) in the aggregate and fiveten million dollars ($5,000,000)($10,000,000) per project. Upon the release of a State Transportation Improvement Program, the Department shall submit a report to the Joint Legislative Transportation Oversight Committee detailing the projects funded under this sub‑sub‑subdivision."

SECTION 34.6.(f)  The reporting requirement set forth in G.S. 136‑189.11(d)(3)b.4., as enacted by subsection (e) of this section, becomes effective July 1, 2018, and applies to State Transportation Improvement Programs released on or after that date.

 

STI/ADDITIONAL REQUIREMENT FOR HIGH‑COST PROJECTS

SECTION 34.7.(a)  G.S. 136‑189.11 is amended by adding a new subsection to read:

"(d1)    Additional Requirement for High‑Cost Projects. – A light rail project is ineligible for scoring, prioritization, and State funding until a written agreement is provided to the Department establishing that all non‑State funding necessary to construct the project has been secured."

SECTION 34.7.(b)  The Department of Transportation shall remove from the current and any future State Transportation Improvement Program all projects that fail to meet the requirement set forth in G.S. 136‑189.11(d1), as enacted by subsection (a) of this section. Any project removed in accordance with this subsection may not be resubmitted for scoring until the next prioritization scoring process. Any funds resulting from a removal required under this subsection shall be expended by the Department in accordance with the provisions of Article 14B of Chapter 136 of the General Statutes.

SECTION 34.7.(c)  This section is effective when it becomes law.

 

INCREASE TRANSPARENCY OF HIGHWAY FUND CERTIFIED BUDGET

SECTION 34.8.(a)  Section 28.2 of S.L. 2011‑145 is repealed.

SECTION 34.8.(b)  G.S. 143C‑6‑11 is amended by adding a new subsection to read:

"(l)       It is the intent of the General Assembly to (i) prevent the inclusion of duplicative fund codes in the Highway Fund certified budget and (ii) correctly align authorized positions and associated operating costs with the appropriate purposes and definitions as defined in G.S. 143C‑1‑1. To that end, the Office of State Budget and Management, in consultation with the Department of Transportation, the Office of the State Controller, and the Fiscal Research Division of the General Assembly, shall include, as an appendix to the Highway Fund certified budget, object detail using the North Carolina Accounting System Uniform Chart of Accounts prescribed by the Office of the State Controller to provide a more detailed accounting of the proposed budgets and receipts and actual expenditures and revenue collections. This requirement includes applying object detail at the four‑digit level for all accounts to full‑time and part‑time positions, to operating expenditures and receipts, and to intrafund transfers. Additionally, work order positions shall be budgeted within existing fund codes."

SECTION 34.8.(c)  This section becomes effective July 1, 2018, and applies beginning with the 2019‑2020 Highway Fund certified budget.

 

EXTEND MAP ACT MORATORIUM

SECTION 34.9.(a)  G.S. 136‑44.50(h) reads as rewritten:

"(h)      No new transportation corridor official map may be adopted pursuant to this section from July 1, 2016, to July 1, 2018.2019."

SECTION 34.9.(b)  Beginning September 1, 2018, and every 60 days thereafter until the last claim or cause of action is settled or adjudicated, the Department of Transportation shall submit to the chairs of the Joint Legislative Transportation Oversight Committee and to the Fiscal Research Division of the General Assembly a report of all claims and causes of action seeking compensation for damages arising from the Department's recordation of a transportation corridor map under Article 2E of Chapter 136 of the General Statutes. The report shall contain the following information:

(1)        Total number of claims and causes of action.

(2)        Total number of settled claims and causes of action.

(3)        Total cost of settled claims and causes of action.

(4)        Total cost of attorneys' fees incurred by contracted legal counsel.

 

DOT REPORT/QUARTERLY COST ESCALATION REPORTS

SECTION 34.10.(a)  G.S. 136‑18.05 is amended by adding a new subsection to read:

"(c)      Quarterly Cost Escalation Report. – Within 30 days of the end of each quarter, the Department of Transportation shall submit to the chairs of the Joint Legislative Transportation Oversight Committee and to the Fiscal Research Division of the General Assembly a quarterly report containing summaries by month of a report for resurfacing projects and a report for contracts let centrally and by the highway divisions. Both reports shall contain all of the following information itemized by highway division:

(1)        Total number of projects.

(2)        Number of awarded projects.

(3)        Number of bidders.

(4)        Average number of bidders per project.

(5)        Number of single bids.

(6)        Number of contracts not awarded.

(7)        Total cost estimate for projects.

(8)        Total low bid amount.

(9)        Percentage above or below estimate."

SECTION 34.10.(b)  The initial reports submitted under G.S. 136‑18.05(c), as enacted by subsection (a) of this section, shall be submitted by October 31, 2018, and shall include information for each quarter beginning July 1, 2015.

 

COMPREHENSIVE AGREEMENT CANCELLATION OR MODIFICATION

SECTION 34.11.(a)  The Governor, or the Governor's designee, shall report to the Joint Legislative Commission on Governmental Operations, the chairs of the House of Representatives Appropriations Committee on Transportation, the chairs of the Senate Appropriations Committee on Department of Transportation, and the Fiscal Research Division of the General Assembly at least 60 days prior to the cancellation or modification of the Comprehensive Agreement, or any change in scope for the project covered by the Comprehensive Agreement. The report shall contain the following information: (i) whether the Comprehensive Agreement is being cancelled, modified, and if there are changes in project scope, (ii) if modified, what modifications are being made to the Comprehensive Agreement, (iii) if there are changes in project scope, what changes in project scope are being made, (iv) the reasons for the cancellation, modification, or change in project scope, and (v) an estimate of damages and monetary penalties the State will be responsible for from the cancellation, modification, or change in project scope.  For purposes of this section, "Comprehensive Agreement" means the Comprehensive Agreement for the I‑77 HOT Lanes project in Mecklenburg and Iredell Counties dated as of June 26, 2014, including any amendments made to the Comprehensive Agreement.

SECTION 34.11.(b)  If damages or other monetary penalties are determined to be owed by the State from the cancellation or modification of the Comprehensive Agreement, or a change in the scope of project covered by the Comprehensive Agreement, those damages or other monetary penalties shall not be paid by funds subject to the requirements of Article 14B of Chapter 136 of the General Statutes.  The payment of any damages or other monetary penalties determined to be owed by the State from the cancellation or modification of the Comprehensive Agreement, or a change in the scope of the project covered by the Comprehensive Agreement, is subject to an express appropriation by the General Assembly.

 

DOT PROPERTY SALE PROCEEDS TO BE DEPOSITED IN state HIGHWAY FUND

SECTION 34.12.(a)  G.S. 146‑30(c) reads as rewritten:

"(c)      The amount or rate of such service charge shall be fixed by rules and regulations adopted by the Governor and approved by the Council of State, but as to any particular sale, lease, rental, or other disposition, it shall not exceed ten percent (10%) of the gross amount received from such sale, lease, rental, or other disposition. Notwithstanding any other provision of this Subchapter, the net proceeds derived from the sale of land or products of land owned by or under the supervision and control of the Wildlife Resources Commission, or acquired or purchased with funds of that Commission, shall be paid into the Wildlife Resources Fund. Provided, however, the net proceeds derived from the sale of land or timber from land owned by or under the supervision and control of the Department of Agriculture and Consumer Services shall be deposited with the State Treasurer in a capital improvement account to the credit of the Department of Agriculture and Consumer Services, to be used for such specific capital improvement projects or other purposes as are provided by transfer of funds from those accounts in the Capital Improvement Appropriations Act. Provided further, the net proceeds derived from the sale of park land owned by or under the supervision and control of the Department of Natural and Cultural Resources shall be deposited with the State Treasurer in a capital improvement account to the credit of the Department of Administration to be used for the purpose of park land acquisition as provided by transfer of funds from those accounts in the Capital Improvement Appropriations Act. In the Capital Improvement Appropriations Act, line items for purchase of park and agricultural lands will be established for use by the Departments of Administration and Agriculture. The use of such funds for any specific capital improvement project or land acquisition is subject to approval by the Director of the Budget. No other use may be made of funds in these line items without approval by the General Assembly except for incidental expenses related to the project or land acquisition. Additionally with the approval of the Director of the Budget, either Department may request funds from the Contingency and Emergency Fund when the necessity of prompt purchase of available land can be demonstrated and funds in the capital improvement accounts are insufficient. Provided further, the net proceeds derived from the sale of any portion of the land owned by the State in or around the Butner Reservation on or after July 1, 1980, shall be deposited with the State Treasurer in a capital improvement account to the credit of the Department of Health and Human Services to make capital improvements on or to property owned by the State in the Butner Reservation subject to approval by the Office of State Budget and Management, and may be used to build industrial access roads to industries located or to be located on the Butner Reservation, to construct new city streets in the Butner Reservation, extend water and sewer service on the Butner Reservation, repair storm drains on the Butner Reservation, and for other capital uses on the Reservation as determined by the Secretary. Provided further, notwithstanding any other provision of this Subchapter, the proceeds derived from the lease dispositions of land or facilities owned or under the supervision and control of East Carolina University's Division of Health Sciences for the delivery of health care services shall be deposited in clinical accounts at East Carolina University to be used to improve access to patient care. Provided further, notwithstanding any other provision of this Subchapter, the net proceeds derived from the sale of land or facilities purchased with funds from the State Highway Fund shall be deposited into the State Highway Fund."

SECTION 34.12.(b)  This section is effective when it becomes law and applies to sales made on or after that date.

 

PROJECT DELIVERY METHOD PILOT PROGRAM

SECTION 34.13.(a)  Definition. – For purposes of this section, the term "construction manager‑general contractor" means a project delivery method that allows the use of a construction manager during the design process to provide input on the design. During the design phase, the construction manager provides advice, including constructability review, scheduling, pricing, and phasing, to assist in designing a more efficient and well‑designed project. The construction manager may subsequently act as the general contractor and construct the project if the department and the construction manager‑general contractor reach agreement on a guaranteed maximum price for construction.

SECTION 34.13.(b)  Pilot Project. – Notwithstanding any provision of Chapter 136 of the General Statutes to the contrary, the Department of Transportation may establish and implement a pilot project to award contracts for up to five projects for the construction of transportation projects on a construction manager‑general contractor basis. The Department may only award a contract under this section if (i) the cost of the project is determined by the Department to be less than one hundred million dollars ($100,000,000), (ii) the Department determines that it is in the public interest to use the construction manager‑general contractor basis for the project, (iii) the Department prequalifies the contractor that will be awarded the contract, (iv) the Department complies with the pre‑award reporting requirement set forth in subsection (c) of this section, and (v) the Department has established and implemented guidelines as required under subsection (d) of this section.

SECTION 34.13.(c)  Report. – Prior to the award of a contract under the authority set forth in subsection (b) of this section, the Department shall submit a pre‑award report to the Joint Legislative Transportation Oversight Committee on the nature and scope of the project and the reasons using the construction manager‑general contractor basis will best serve the public interest. Upon completion of a project awarded under subsection (b) of this section, the Department shall submit a post‑completion report to the Joint Legislative Transportation Oversight Committee detailing the results of the project, including any cost and time efficiencies achieved as a result of using the construction manager‑general contractor basis.

SECTION 34.13.(d)  Guidelines. – The Department shall develop and implement guidelines for the awarding of contracts under subsection (b) of this section.

SECTION 34.13.(e)  Effective Date. – This section is effective when it becomes law. This section expires upon submission of the post‑completion report required under subsection (c) of this section for the final project completed under the authority set forth in subsection (b) of this section.

 

REPLACEMENT ROW FOR UTILITY RELOCATION

SECTION 34.14.  G.S. 136‑19.5(c) reads as rewritten:

"(c)      Whenever the Department of Transportation requires the relocation of utilities, including cable service as defined in G.S. 105‑164.3, located in a right‑of‑way for which the utility owner contributed to the cost of acquisition, the Department of Transportation shall reimburse the utility owner for the cost of moving those utilities. The Department may, with the agreement of the utility owner, acquire a replacement right‑of‑way and assign the easement rights of the replacement right‑of‑way to the utility owner."

 

UNANTICIPATED BRIDGE OR ROAD CLOSURE/WAIVER OF BIDDING REQUIREMENTS

SECTION 34.15.  G.S. 136‑28.1(e) reads as rewritten:

"(e)      The Department of Transportation may enter into contracts for construction, maintenance, or repair without complying with the bidding requirements of this section upon a determination of the Secretary of Transportation or the Secretary's designee that an emergency exists and that it is not feasible or not in the public interest for the Department of Transportation to comply with the bidding requirements. For purposes of this section, the term "emergency" includes any of the following that is unanticipated, results in detours or deters the free movement of goods and services, and requires an estimated expenditure of ten million dollars ($10,000,000) or less in construction, maintenance, or repair costs:

(1)        A bridge closure.

(2)        A road closure.

(3)        A weight restriction."

 

DESIGNATION OF BRIDGES

SECTION 34.16.  Notwithstanding any provision of law to the contrary, the Department of Transportation shall designate the bridges described in the subdivisions below as follows:

(1)        The Millstone Road bridge over Interstate 73 and Interstate 74 and located off Exit 28 in the Town of Ellerbe in Richmond County as the "Colonel Jack F. Cardwell Bridge".

(2)        The bridge numbered 252 by the Department that is located in the City of Lowell in Gaston County as the "Sgt. Larry K. Morrow, Vietnam‑MIA, 5‑29‑1972 Bridge".

(3)        The bridge on U.S. Highway 158 East that crosses part of the Interstate 74 Northern Beltway in Forsyth County as the "Officer Stephen Levi Amos II Bridge".

(4)        The bridge on N.C. Highway 18 that crosses the U.S. Highway 74 Bypass in the City of Shelby in Cleveland County as the "Officer Tim Brackeen Bridge".

(5)        The bridge on Pharr Mill Road that crosses North Carolina Highway 49 in the Town of Harrisburg in Cabarrus County as the "Joshua B. Earley Bridge".

 

DOT REPORT/FEDERAL BUILD GRANT SUBMISSIONS

SECTION 34.17.  The Department of Transportation shall report to the chairs of the House of Representatives Appropriations Committee on Transportation, the chairs of the Senate Appropriations Committee on Department of Transportation, and the Fiscal Research Division of the General Assembly at least 15 days prior to submission of a grant application for funding through the United States Department of Transportation Better Utilizing Investments to Leverage Development (BUILD) Transportation Discretionary Grants program. The report shall contain project information, including a description and time line for completion, project cost and the amount of grant requested, and a brief overview of which federal criteria the project proposes to meet, including safety, economic competitiveness, quality of life, environmental protection, state of good repair, innovation, partnership, and additional nonfederal revenue for future transportation infrastructure investments.

 

ZONING OR PERMIT REQUEST/PROHIBIT CITY FROM REQUIRING WAIVER BY SCHOOL OF CERTAIN RIGHTS AND REQUIREMENTS

SECTION 34.18.(a)  G.S. 160A‑307.1 reads as rewritten:

"§ 160A‑307.1.  Limitation on city requirements for street improvements related to schools.

A city may only require street improvements related to schools that are required for safe ingress and egress to the municipal street system and that are physically connected to a driveway on the school site. The required improvements shall not exceed those required pursuant to G.S. 136‑18(29). G.S. 160A‑307 shall not apply to schools. A city may only require street improvements related to schools as provided in G.S. 160A‑372. The cost of any improvements to the municipal street system pursuant to this section shall be reimbursed by the city. Any agreement between a school and a city to make improvements to the municipal street system shall not include a requirement for acquisition of right‑of‑way by the school, unless the school is owned by an entity that has eminent domain power. Any right‑of‑way costs incurred by a school for required improvements pursuant to this section shall be reimbursed by the city. Notwithstanding any provision of this Chapter to the contrary, a city may not condition the approval of any zoning, rezoning, or permit request on the waiver or reduction of any provision of this section. The term "school," as used in this section, means any facility engaged in the educational instruction of children in any grade or combination of grades from kindergarten through the twelfth grade at which attendance satisfies the compulsory attendance law and includes charter schools authorized under G.S. 115C‑218.5."

SECTION 34.18.(b)  G.S. 160A‑383(d) reads as rewritten:

"(d)      Zoning regulations shall be designed to promote the public health, safety, and general welfare. To that end, the regulations may address, among other things, the following public purposes: to provide adequate light and air; to prevent the overcrowding of land; to avoid undue concentration of population; to lessen congestion in the streets; to secure safety from fire, panic, and dangers; and to facilitate the efficient and adequate provision of transportation, water, sewerage, schools, parks, and other public requirements. The regulations shall be made with reasonable consideration, among other things, as to the character of the district and its peculiar suitability for particular uses, and with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout such city. The regulations may not include, as a basis for denying a zoning or rezoning request from a school, the level of service of a road facility or facilities abutting the school or proximately located to the school."

SECTION 34.18.(c)  This section is effective when it becomes law and applies retroactively to August 1, 2017. Any ordinance, resolution, regulation, or policy in effect on or after August 1, 2017, that violates or is not consistent with the provisions of this section is null and void as of the effective date of this section.

 

PILOT PROGRAM/DOT SALARY ADJUSTMENT & RETENTION FUNDS

SECTION 34.19.(a)  Subject to the approval of the Secretary of the Department of Transportation, employees of the Department of Transportation (Department) who voluntarily relinquish (i) annual longevity payments or any claim to longevity pay and (ii) any claim to career status or eligibility for career status are exempt from:

(1)        The classification and compensation rules established by the State Human Resources Commission pursuant to G.S. 126‑4(1) through (4).

(2)        G.S. 126‑4(5) only as it applies to hours and days of work, vacation, and sick leave.

(3)        G.S. 126‑4(6) only as it applies to promotion and transfer.

(4)        G.S. 126‑4(10) only as it applies to the prohibition of the establishment of incentive pay programs.

(5)        Article 2 of Chapter 126 of the General Statutes, except for G.S. 126‑7.1.

SECTION 34.19.(b)