Bill Text: NC S743 | 2017-2018 | Regular Session | Amended
Bill Title: Governor's Budget
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2018-05-24 - Ref To Com On Rules and Operations of the Senate [S743 Detail]
Download: North_Carolina-2017-S743-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
S 1
SENATE BILL 743*
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Short Title: Governor's Budget. |
(Public) |
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Sponsors: |
Senators B. Jackson, Brown, and Harrington (Primary Sponsors). |
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Referred to: |
Rules and Operations of the Senate |
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May 24, 2018
A BILL TO BE ENTITLED
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
INTRODUCTION
SECTION 1.1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes, and, except as allowed by the State Budget Act or this act, the savings shall revert to the appropriate fund at the end of each fiscal year, except as otherwise provided by G.S. 143C‑1‑2(b).
TITLE OF ACT
SECTION 1.2. This act shall be known as the "Current Operations Appropriations Act of 2018."
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's departments, institutions, and agencies and for other purposes as enumerated are adjusted for the fiscal year ending June 30, 2019, according to the following schedule:
Current Operations – General Fund FY 2018‑2019
EDUCATION
Community Colleges System Office 81,331,106
Department of Public Instruction 338,518,144
University of North Carolina – Board of Governors
Appalachian State University
East Carolina University
Academic Affairs (241,276)
Health Affairs 0
Elizabeth City State University 1,124,000
Fayetteville State University 932,000
NC A&T State University 3,466,000
NC Central University 1,067,000
NC State University
Academic Affairs 2,250,000
Agricultural Extension 0
Agricultural Research 0
UNC‑Asheville 750,000 UNC‑Chapel Hill
Academic Affairs 2,500,000
Health Affairs 0
AHEC 0
UNC‑Charlotte 0
UNC‑Greensboro 0
UNC‑Pembroke 500,000
UNC‑School of the Arts 1,000,000
UNC‑Wilmington 0
Western Carolina University 0
Winston‑Salem State University 752,809
General Administration 0
University Institutional Programs 100,596,546
Related Educational Programs 0
NC School of Science & Mathematics 500,000
Aid to Private Institutions (5,000,000)
Total University of North Carolina –
Board of Governors 110,197,079
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Central Management and Support 17,879,628
Division of Aging and Adult Services 0
Division of Blind Services/Deaf/HH 0
Division of Child Development and Early Education 3,425,000
Health Service Regulation 85,389
Division of Medical Assistance 33,759,033
Division of Mental Health, Developmental Disabilities,
& Substance Abuse Services 25,708,167
NC Health Choice 1,760
Health Benefits 12,945,104
Division of Public Health 3,127,506
Division of Social Services 0
Division of Vocation Rehabilitation 0
Total Health and Human Services 96,931,587
AGRICULTURE AND NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services 14,288,861
Department of Commerce
Commerce 337,629
Commerce State‑Aid 2,500,000
Commerce – Economic Development 30,679,142
Department of Natural and Cultural Resources
Natural and Cultural Resources 6,559,222
Roanoke Island Commission 0
Wildlife Resources Commission 348,456
Department of Environmental Quality 17,166,694
Department of Labor 1,497,966
JUSTICE AND PUBLIC SAFETY
Department of Public Safety 93,689,779
Judicial Department 21,468,002
Judicial Department – Indigent Defense 3,926,438
Department of Justice 7,278,721
GENERAL GOVERNMENT
Department of Administration 3,530,645
Office of Administrative Hearings 193,405
Department of State Auditor 492,474
Office of State Controller 651,692
State Board of Elections 382,550
General Assembly 1,584,140
Office of the Governor
Office of the Governor 105,727
Office of the Governor – Special Projects 0
Office of State Budget and Management
Office of State Budget and Management 309,805
OSBM – Reserve for Special Appropriations 1,000,000
Housing Finance Agency
Department of Insurance 1,740,254
Industrial Commission 131,593
Office of Lieutenant Governor 19,030
Department of Military and Veterans Affairs 1,256,171
Department of Revenue 1,771,030
Department of Secretary of State 894,743
Department of Information Technology 21,955,156
Department of State Treasurer
State Treasurer 34,221
State Treasurer – Retirement for
Fire and Rescue Squad Workers 0
RESERVES, ADJUSTMENTS, AND DEBT SERVICE
Contingency and Emergency Fund 2,000,000
Salary Adjustment Fund Reserve 20,000,000
NC 457 Contributions for Certified State Correction Officers Reserve 10,000,000
Workers' Compensation Reserve 1,500,000
2020 Census Preparation Reserve 1,500,000
Bond Disclosure, Close Out, and Tax‑Exempt Analysis Reserve 50,000
Public Schools Average Daily Membership (ADM) Reserve (48,410,289)
Pending Legislation Reserve (500,000)
Debt Service
General Debt Service (54,567,293)
TOTAL CURRENT OPERATIONS – 794,343,880
GENERAL FUND
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
Beginning Availability
Unappropriated Balance from Prior Fiscal Year 490,975,581
Anticipated Over Collections 356,700,000
Anticipated Reversions 275,000,000
Transfers:
Savings Reserve (184,100,000)
Repairs and Renovations Reserve (125,000,000)
Public Safety Improvements Reserve (100,000,000)
Information Technology Infrastructure Reserve (50,000,000)
State Emergency Response & Disaster Relief Reserve Account (139,500,000)
Beginning Unreserved Fund Balance 524,075,581
Revenues Based on Existing Tax Structure 22,960,100,000
Nontax Revenues
Investment Income $ 99,400,000
Judicial Fees 232,700,000
Disproportionate Share 163,300,000
Insurance 82,700,000
Master Settlement Agreement 139,400,000
Other Nontax Revenues 193,700,000
Subtotal Nontax Revenue 911,200,000
Total General Fund Availability 23,871,300,000
Adjustments to Availability: 2018 Session
Conformity with Federal Tax Cuts and Jobs Act 54,000,000
Two‑Bracket Personal Income Tax Change 67,600,000
Keep Corporate Income Tax Rate at 3% 42,400,000
Transfer 25% of Real Estate Conveyance Tax Revenue to Other Funds (18,700,000)
Direct Additional Funds to Golden LEAF Foundation (5,000,000)
Adjustment for Transfer from Treasurer's Office 34,221
Adjustment for Transfer from Insurance Regulatory Fund 1,740,254
Subtotal Adjustments to Availability 142,074,475
Revised General Fund Availability 24,537,450,056
Less General Fund Appropriations (24,537,450,056)
Unappropriated Balance Remaining 0
SECTION 2.2.(b) Notwithstanding the provisions of G.S. 143C‑4‑3(a), the State Controller shall transfer a total of one hundred twenty‑five million dollars ($125,000,000) 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 hereby appropriated for the 2018‑2019 fiscal year and shall be used in accordance with G.S. 143C‑4‑3. This subsection becomes effective June 30, 2018.
SECTION 2.2.(c) Notwithstanding G.S. 143C‑4‑2, the State Controller shall transfer a total of one hundred eighty‑four million one hundred thousand dollars ($184,100,000) from the unreserved fund balance to the Savings Reserve Account on June 30, 2018. 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. This subsection becomes effective June 30, 2018.
SECTION 2.2.(d) The State Controller shall transfer a total of twenty‑one million four hundred thirty‑eight thousand one hundred seventy‑one dollars ($21,438,171) from the Medicaid Contingency Reserve to the Department of Health and Human Services.
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 adjusted for the fiscal year ending June 30, 2019, according to the following schedule. Amounts set out in parentheses are reductions from the Highway Fund Appropriations for the 2018‑2019 fiscal year:
Current Operations – Highway Fund FY 2018‑2019
Department of Transportation
Administration $ 0
Division of Highways
Administration 0
Construction 0
Maintenance (38,994,179)
Planning and Research 0
OSHA Program 0
State Aid to Municipalities 0
Intermodal Divisions
Ferry 0
Public Transportation 0
Aviation 1,600,000
Rail (300,000)
Bicycle and Pedestrian 0
Governor's Highway Safety 0
Division of Motor Vehicles 0
Other State Agencies, Reserves, Transfers 10,696,491
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 0
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 biennium ending June 30, 2019, according to the following schedule. Amounts set out in parentheses are reductions from the Highway Fund Appropriations for the 2018‑2019 fiscal year:
Current Operations – Highway Trust Fund FY 2018‑2019
Program Administration $ 664,054
Debt Service 0
Turnpike Authority 0
State Ports Authority 0
Transfer to Highway Fund 0
FHWA State Match 0
Strategic Prioritization Funding Plan for
Transportation Investments (45,988,216)
Total Highway Trust Fund Appropriations $ 1,540,500,000
HIGHWAY TRUST FUND AVAILABILITY STATEMENT
Highway Trust Fund Availability FY 2018‑2019
Unreserved Fund Balance $ 0
Estimated Revenue 1,540,500,000
Adjustment to Revenue Availability 0
Total Highway Trust Fund Availability $ 1,540,500,000
Unappropriated Balance $ 0
PART V. OTHER APPROPRIATIONS
EDUCATION LOTTERY FUNDS/CHANGES TO REVENUE ALLOCATIONS/NEEDS‑BASED PUBLIC SCHOOL CAPITAL FUND
SECTION 5.1. Section 5.3(a) of S.L. 2017‑57 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 75,000,000
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 1,386,09011,902,152
K‑3 Class Size Capital Fund 69,000,000
TOTAL APPROPRIATION $676,612,932 $681,747,388$761,263,450"
K‑3 CLASS SIZE CAPITAL FUND
SECTION 5.3.(a) There is created the K‑3 Class Size Capital Fund to be administered by the State Board of Education. A minimum of seventy‑five million dollars ($75,000,000) shall be transferred from the Education Lottery Fund and Indian Gaming Fund to the K‑3 Class Size Capital Fund for the 2018‑2019 fiscal year. These funds shall be used to award grants to counties to offset the capital costs associated with K‑3 class size reduction required by the 2021‑2022 school year in G.S. 115C‑301. The State Board of Education shall award grants to counties in accordance with the following priorities:
(1) Counties with a demonstrated need for additional classrooms in order to comply with G.S. 115C‑301 by the 2021‑2022 school year.
(2) Counties with a difficulty complying with G.S. 115C‑301 due to a financial hardship.
(3) Proposals that maximize the class size reduction for the associated cost.
SECTION 5.3.(b) Funds awarded under this section shall only be used for the following purposes:
(1) Construction of new K‑3 classroom facilities.
(2) Purchase and installation of mobile classroom facilitates.
(3) Renovation and conversion of existing facilities that result in additional K‑3 classrooms.
SECTION 5.3.(c) Funds awarded under this section may not be used for real property acquisition or for operational lease agreements.
SECTION 5.3.(d) Grant funds awarded under this section shall be subject to a matching requirement, based on county‑tier of the recipient county. For purposes of this subsection, development tier area is as defined in G.S. 143B‑437.08, and the match requirement is 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.
(2) For a county designated as a development tier two area, the grant shall not exceed two dollars ($2.00) in grant funds for every one dollar ($1.00) provided by the county.
(3) For a county designated as a development tier three area, the grant shall not exceed one dollar ($1.00) in grant funds for every one dollar ($1.00) provided by the county.
SECTION 5.3.(e) For the purposes of determining matching funds, the following may be utilized by the county for demonstration of non‑State match:
(1) Local funds appropriated by the county for school capital.
(2) Proceeds of local bonds issued for school capital.
(3) Any other non‑State funds that the local government has used for capital.
No funds listed in this subsection may be used for a demonstration of non‑State match, if those funds have previously been used as a match for another State funding program.
SECTION 5.3.(f) On or before April 1 of each year, a grant recipient shall submit to the State Board of Education an annual report for the preceding year that describes the progress of the project for which the grant was received. The grant recipient shall submit a final report to the State Board of Education within three months of the completion of the project.
SECTION 5.3.(g) On or before May 1 of each year, the State Board of Education shall submit a report to the chairs of the Senate Appropriations Committee on Education/Higher Education, the chairs of the House Appropriations Committee on Education, the Fiscal Research Division, and the Office of State Budget and Management. The report shall contain at least all of the following information for the fiscal year:
(1) Number and description of projects awarded.
(2) Total cost of each project and amount supported by the K‑3 Class Size Capital Fund.
(3) Any legislative recommendations for improving the K‑3 Class Size Capital Fund.
CIVIL PENALTY AND FORFEITURE FUND
SECTION 5.4. Section 5.4(b) of S.L. 2017‑57 reads as rewritten:
"SECTION 5.4.(b) Excess receipts realized in the Civil Penalty and
Forfeiture Fund in each year of the 2017‑2019 fiscal biennium shall
remain unspent until appropriated by a further act of the General Assembly.the
2017‑2018 fiscal year shall be allocated to the State Public School Fund
in the 2018‑2019 fiscal year. Excess receipts realized in the 2018‑2019
fiscal year shall remain unspent until appropriated by a further act of the
General Assembly."
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 fiscal biennium is transferred
from the Indian Gaming Education Revenue Fund to the Department of Public
Instruction, Textbooks, and Digital Resources Allotment.Allotment and
the sum of six million dollars ($6,000,000) in the 2018‑2019 fiscal year
is transferred from the Indian Gaming Revenue Fund to the K‑3 Class Size
Capital Fund."
PART VI. GENERAL PROVISIONS
ESTABLISHING OR INCREASING FEES
SECTION 6.2.(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 6.2.(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.
EXPENDITURES OF FUNDS IN RESERVES LIMITED
SECTION 6.3. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
CAP STATE FUNDED PORTION OF NONPROFIT SALARIES
SECTION 6.4. No more than one hundred twenty thousand dollars ($120,000) in State funds may be used for the annual salary of any individual employee of a nonprofit organization receiving State funds. For the purposes of this section, the term "State funds" means funds as defined in G.S. 143C‑1‑1(d)(25) and any interest earnings that accrue from those funds.
ADVANCING EVIDENCE‑BASED POLICY‑MAKING AND PERFORMANCe MANAGEMENT IN STATE BUDGETING
SECTION 6.5.(a) Section 26.3 of S.L. 2017‑57 is amended by adding a new subsection to read:
"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 6.5.(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.
SECTION 6.5.(c) G.S. 143C‑1‑1(d) is amended by adding a new subdivision to read:
"(21a) Performance management. – An on‑going process of measuring, evaluating, and adjusting actions to improve outcomes."
RESTORE DEBT SERVICE FUNDS FOR WILMINGTON HARBOR
SECTION 6.6.(a) The Office of State Budget and Management (OSBM) shall use sixteen million dollars ($16,000,000) in the 2017‑2018 fiscal year year‑end reversions to replace the Wilmington Harbor debt repayment funds that reverted to the General Fund in the 2016‑2017 fiscal year. OSBM may first use any reversions from General Fund debt service before using agency reversions.
SECTION 6.6.(b) This section becomes effective June 30, 2018.
CONTINGENCY AND EMERGENCY FUND LIMITATION AND TRANSFER
SECTION 6.7. Section 6.1(a) of S.L. 2017‑57 reads as rewritten:
"SECTION 6.1.(a)
Limitation. – For the 2017‑2019 fiscal biennium, and notwithstanding the
provisions of G.S. 143C‑4‑4(b), funds appropriated to the
Contingency and Emergency Fund may be used only for expenditures required (i)
by a court or Industrial Commission order, (ii) to respond to events as
authorized under G.S. 166A‑19.40(a) of the North Carolina Emergency
Management Act, (iii) by the State Treasurer to pay death benefits as
authorized under Article 12A of Chapter 143 of the General Statutes, (iv) by
the Office of the Governor for crime rewards in accordance with G.S. 15‑53
and G.S. 15‑53.1, (v) by the Industrial Commission for supplemental
awards of compensation, or (vi) by the Department of Justice for legal fees.
These funds shall not be used for other statutorily authorized purposes or for
any other contingencies and emergencies."
MSA FUND/INCREASE APPROPRIATION TO GOLDEN L.E.A.F
SECTION 6.8. G.S. 143C‑9‑3(a1), as amended by Section 6.5 of S.L 2017‑57, reads as rewritten:
"(a1) Each year, the sum of
seventeen million five hundred thousand dollars ($17,500,000) twenty‑two
million five hundred thousand dollars ($22,500,000) from the Settlement
Reserve Fund is appropriated to The Golden L.E.A.F. (Long‑Term Economic
Advancement Foundation), Inc., a nonprofit corporation, and these funds shall
not be subject to G.S. 143C‑6‑23. The remainder of the funds
credited to the Settlement Reserve Fund each fiscal year shall be transferred
to the General Fund and included in General Fund availability as nontax
revenue."
PART VI‑A. DISASTER RELIEF FUNDING
SECTION 6A.1. This Part shall be known as "The Disaster Recovery Act of 2018."
SECTION 6A.2.(a) More than 18 months after Hurricane Matthew, there continues to be many unmet needs in the State of North Carolina, and federal and State programs are inadequate to provide relief to individuals, local governments, and businesses in the impacted areas.
SECTION 6A.2.(b) The State of North Carolina has continued to assess and determine the scope of the unmet needs associated with the damages caused by Hurricane Matthew. The current estimate of unmet needs is at least nine hundred one million dollars ($901,000,000). The State of North Carolina will continue to work with our federal agencies and appropriators to ensure that the maximum level of funding is secured for reimbursement of State funds for any eligible federal expenditures already incurred as well as additional support for the overall recovery efforts in the State.
SECTION 6A.2.(c) It is the intent of the General Assembly that the benefits of the projects and programs authorized by this part are for the common good and collective recovery of the people of this State following devastating natural disasters directly affecting a large portion of the State and indirectly affecting the entire State. The entire State faces a major economic loss if the counties that bore the major impact of these disasters are not offered the assistance provided by this act. The purpose of this part is to provide a net public benefit to the State through a successful recovery initiative.
SECTION 6A.2.(d) The General Assembly finds that the State and federal disaster relief initiatives are intended to assist the affected areas in recovering from the damage caused by Hurricane Matthew.
SECTION 6A.3. The North Carolina counties that were declared in 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.
(2) Part of the emergency area set forth in Executive Order No. 107 (October 3, 2016).
(3) Any counties declared in the Type III gubernatorial disaster declaration issued in Executive Order No. 120 (December 9, 2016).
SECTION 6A.4. Funding. – Of the funds appropriated or transferred to the State Emergency Response and Disaster Relief Fund, the sum of one hundred thirty‑nine million five hundred thousand dollars ($139,500,000) in additional funds shall be used to continue to provide disaster relief to assist the affected areas in recovering from the damage caused by Hurricane Matthew.
SECTION 6A.5. Disaster Relief. – The Governor shall expend funds appropriated to or otherwise transferred to the State Emergency Response and Disaster Relief Fund to provide for the following programs and activities:
(1) Housing assistance, which may include, but shall not be limited to, direct housing assistance to homeowners and renters, owner‑occupied housing repairs, renter‑occupied housing repairs, buyout, elevation, or reconstruction of both owner‑occupied and renter‑occupied housing, housing counselors, insurance subsidies, public housing repairs, new development of affordable housing complexes, and related housing recovery efforts.
(2) Infrastructure assistance, which may include, but shall not be limited to, funding for the repair, renovation, and relocation of facilities, sewer line replacements, collection systems, and drainage systems, to include engineered system mapping and documentation; enhancing and expanding the carrying capacity of culverts, curbs, stormwater drains, school projects, and pipes, and relocating utility poles and underwater sewer lines; and removing debris in open channels and public lands. Infrastructure programs may also include allocations 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.
(3) Agricultural recovery assistance, including, but not limited to, assistance to the agriculture, aquaculture, and forestry industries due to losses suffered related to livestock, farm equipment, roads, livestock feed, and others.
(4) Small business recovery services, which may include, but not limited to, allocations provided to the North Carolina Department of Commerce, for the purpose of providing forgivable loans or related assistance to small businesses and eligible entities in areas affected by Hurricane Matthew, the western wildfires, or Tropical Storms Julia and Hermine. The Department of Commerce is also authorized to budget the residual unobligated balance of two hundred thirty‑five thousand eight hundred sixty‑four dollars ($235,864) originally appropriated from Section 4.1(12) of S.L. 2016‑124 to support the administration and program activities association with this small business assistance program.
(5) Risk Management, including, but not limited to, acquiring high‑resolution topography ground elevation, channel geometry, and built environment data; acquiring, installing, and monitoring flood warning systems; conducting flood hazard studies; identifying and mapping urban, impervious flooding hazard areas; and modeling, mapping, and real‑time display of inundation zones and impact assessments for dams.
(6) Management and Oversight, including, but not limited to, engineering design, contracting, surveying, grants management, program management, project management, outreach, and technical assistance to the 50 disaster‑declared counties. The North Caroina Division of Emergency Management is authorized to provide grants‑in‑aid to support the Princeville Redevelopment Authority and the Town of Fair Bluff.
(7) Required Matching Funds for federal Disaster Assistance Programs.
SECTION 6A.6. Limitations on Fund Use. – Consistent with the provisions of this act, the Governor shall spend monies appropriated to or otherwise transferred to the State Emergency Response and Disaster Relief Fund to assist entities within the counties referenced in this act. Savings shall be effected where the total amount appropriated is not required to implement this act. Savings in one program area may be used to support additional needs in a different program area as referenced in this act. All such savings or reallocations, if required, shall be reported monthly on the required report by the Office of State Budget and Management.
SECTION 6A.7. Funds Do Not Revert. – G.S. 143C‑6‑23(f1)(1) shall not apply to funds appropriated in this act.
SECTION 6A.8.(a) No State funds appropriated in this part 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 and maintained by the North Carolina Flood Plain Mapping Program under the federal Emergency Management Agency's National Flood Insurance Program.
SECTION 6A.8.(b) Homeowners in the 100‑year floodplain who receive homeowner's housing assistance pursuant to this part 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 6A.9. The Office of State Budget and Management may establish part‑time and full‑time personnel positions to implement this act. Positions established under this section are time limited and exempt from the State Human Resources Act.
SECTION 6A.10. It is the intent of the General Assembly that, during this time of rebuilding and relief efforts, each State agency should strive to acquire goods and services from historically underutilized business vendors, whether directly as principal contractors or indirectly as subcontractors or otherwise.
SECTION 6A.11. The General Assembly finds that the magnitude of the devastation caused by Hurricane Matthew and the urgency of the need for immediate State recovery assistance require expeditious actions by State agencies. Delay could (i) cause serious and unforeseen threats to the public health, safety, or welfare; (ii) result in the loss of federal revenues for the recovery effort; or (iii) increase the likelihood of fraud and abuse in recovery programs. Therefore, every agency, as defined in G.S. 150B‑2, may adopt temporary rules necessary to implement the provisions of this act. Except as provided in this section, temporary rules to implement the provisions of this part shall be adopted as provided in G.S. 150B‑21.1. Notwithstanding the provisions of G.S. 150B‑21.1(a)(2) and 26 NCAC 2C .0102(11), the authority to adopt temporary rules to implement the provisions of this part shall continue in effect until all rules necessary to implement the provisions of this part have become effective as either temporary rules or permanent rules. Notwithstanding the provisions of G.S. 150B‑21.1(d), a temporary rule adopted to implement the provisions of this part shall specify the date on which the rule will expire and shall continue in effect until that date. Any agency that adopts a temporary rule to implement the provisions of this part shall report the text of the rule and the agency's written statement of its findings of the need for the rule to the Joint Legislative Administrative Procedure Oversight Committee within 30 days of the adoption of the temporary rule. This section applies to the adoption of temporary rules by the Department of Administration under G.S. 113A‑11(a) and to the adoption of temporary rules that establish minimum criteria by any State agency, as defined in G.S. 113A‑9, under G.S. 113A‑11(b).
SECTION 6A.12.(a) Each agency disbursing funds or property under this part from the Disaster Relief Reserve Fund for hurricane relief or assistance, other than payments for goods or services provided by the recipient, shall include with the disbursement a written statement of the State and federal income tax treatment of the funds or property disbursed.
SECTION 6A.12.(b) 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 6A.12.(c) 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 6A.12.(d) This section is effective for taxable years beginning on or after January 1, 2017.
PART VII. PUBLIC SCHOOLS
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 years year
2017‑2018 and four thousand four hundred forty‑two dollars
and thirty‑four cents ($4,442.34) for fiscal year 2018‑2019.
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
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."
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 years
year 2017‑2018 and one thousand three hundred thirty‑nine
dollars and fourteen cents ($1,339.14) for fiscal year 2018‑2019. 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 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."
REORGANIZATION OF THE DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.3.(a) Notwithstanding G.S. 143C‑6‑4, the State Board of Education and the Department of Public Instruction may, in consultation with the Office of State Budget and Management, reorganize the Department, if necessary, to implement the budget reductions for the 2017‑2019 biennium, improve efficiency, and better align fund structure to reflect current programs. Consultation shall occur prior to requesting budgetary and personnel changes through the budget revision process. The State Board of Education and Department of Public Instruction shall provide (i) a current organization chart and the proposed organization chart clearly identifying the changes for the Department and (ii) the current and proposed organization of Purposes and Programs as defined in G.S. 143C‑1‑1 in the consultation process.
SECTION 7.3.(b) The State Board of Education and Department of Public Instruction shall 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 any reorganization, including any movement of positions and funds between fund codes on a recurring basis.
COOPERATIVE INNOVATIVE HIGH SCHOOL FUNDING CHANGES
SECTION 7.4. Section 7.22 of S.L. 2017‑57 reads as rewritten:
"SECTION 7.22.(a) Legislative Findings. – The General Assembly finds the following in regard to the State's long‑term, ongoing investment in providing high school students with opportunities to obtain postsecondary credit and career credentials at no cost to the student in order to maximize cost savings to students in obtaining a postsecondary education:
…
"SECTION
7.22.(c) Cooperative Innovative High Schools Located in Tier I Areas. – Of
the funds appropriated to the Department of Public Instruction by this act for
the 2017‑2019 fiscal biennium, the Department shall allocate the sum of
two hundred seventy‑five thousand dollars ($275,000) for fiscal year
2017‑2018 and two hundred ninety‑five thousand dollars ($295,000)
for fiscal year 2018‑2019 in recurring funds for each fiscal year from
the cooperative innovative high school supplemental allotment to a local school
administrative unit located, as of July 1, 2017, in a development tier one area
as defined in G.S. 143B‑437.08, with a cooperative innovative high
school that was approved by the State Board of Education under G.S. 115C‑238.51A(c),
except as follows:
(1) For a virtual cooperative innovative high school, the Department shall allocate the sum of two hundred thousand dollars ($200,000) in recurring funds from the cooperative innovative high school supplemental allotment to the local school administrative unit for each fiscal year.
(2) For the Northeast Regional School of Biotechnology and Agriscience, the Department shall allocate the sum of three hundred ten thousand dollars ($310,000) in recurring funds from the regional school supplemental allotment for the school for each fiscal year.
"SECTION 7.22.(d)
Cooperative Innovative High Schools Located in Tier II Areas. – Of the funds
appropriated to the Department of Public Instruction by this act for the 2017‑2019
fiscal biennium, the Department shall allocate the sum of two hundred thousand
dollars ($200,000) for fiscal year 2017‑2018 and two hundred twenty
thousand dollars ($220,000) for fiscal year 2018‑2019 in recurring
funds for each fiscal year from the cooperative innovative high school
supplemental allotment to a local school administrative unit located, as of
July 1, 2017, in a development tier two area as defined in G.S. 143B‑437.08,
with a cooperative innovative high school that was approved by the State Board
of Education pursuant to G.S. 115C‑238.51A(c), including a virtual
cooperative innovative high school.
"SECTION 7.22.(e)
Cooperative Innovative High Schools Located in Tier III Areas. – Of the funds
appropriated to the Department of Public Instruction by this act for the 2017‑2019
fiscal biennium, the Department shall allocate following amounts the
sum of one hundred eighty thousand dollars ($180,000) in recurring funds and
twenty thousand dollars ($20,000) in nonrecurring funds for fiscal year 2017‑2018,
and the sum of two hundred thousand dollars ($200,000) in recurring funds for
fiscal year 2018‑2019 from the cooperative innovative high school
supplemental allotment to a local school administrative unit located, as of
July 1, 2017, in a development tier three area as defined in G.S. 143B‑437.08,
with a cooperative innovative high school that was approved by the State Board
of Education pursuant to G.S. 115C‑238.51A(c):G.S. 115C‑238.51A(c).
(1) For the 2017‑2018 fiscal year, the
Department shall allocate the sum of one hundred eighty thousand dollars
($180,000) in recurring funds and twenty thousand dollars ($20,000) in
nonrecurring funds from the cooperative innovative high school supplemental
allotment.
(2) For the 2018‑2019 fiscal year, the
Department shall allocate the sum of one hundred eighty thousand dollars
($180,000) in recurring funds from the cooperative innovative high school
supplemental allotment.
…."
RESIDENTIAL SCHOOLS
SECTION 7.5. From the funds appropriated in this act to the Department of Public Instruction, the State Board of Education shall allocate up to two million dollars ($2,000,000) to the North Carolina School for the Deaf, Eastern North Carolina School for the Deaf, and Governor Morehead School. Funds may be used for hard‑to‑staff positions, equipment, maintenance and repairs, utilities, and position reclassification. The distribution of funds and positions to the three residential schools shall be determined by the State Board of Education.
SECTION 7.6. From the funds appropriated to the Department of Public Instruction, the Department is authorized to use up to two hundred thousand dollars ($200,000) in support of the Troops to Teachers program if federal funds are not available to support the program.
TEACHER PROFESSIONAL DEVELOPMENT ALLOTMENT
SECTION 7.7. Of the funds appropriated in this act to the Department of Public Instruction, five million dollars ($5,000,000) shall fund the new Teacher Professional Development Allotment. Funds shall be used by local administrative units and charter schools for teacher professional development. Funds shall be allotted to local administrative units based on average daily membership. The Department shall determine an appropriate minimum allotment.
INSTRUCTIONAL SUPPORT PERSONNEL – CERTIFIED ALLOTMENT
SECTION 7.8. Of the funds appropriated in this act to the Department of Public Instruction, forty million dollars ($40,000,000) shall be used to increase funding for the Instructional Support Personnel – Certified Allotment. These funds shall be used by local administrative units and charter schools for certified school‑based instructional support personnel, including nurses, counselors, school psychologists, and social workers. The State Board of Education shall ensure at least one new full‑time equivalent position is allotted to each local administrative unit. The remaining additional positions shall be allotted based on average daily membership.
EXPANDING OPPORTUNITIES FOR HIGH ACHIEVING STUDENTS GRANT PROGRAM
SECTION 7.9.(a) Purpose. – The State Board of Education shall establish a grant program to expand opportunities for the identification of high‑achieving students from under‑represented populations, such as low‑income students, minority students, and English language learners, to be placed in Academically and Intellectually Gifted (AIG) classes and other opportunities for academically advanced students. Grants may include, but are not limited to, carrying out the following:
(1) Screening of all students in schools or school districts for AIG and/or other advanced academic placement.
(2) Enhanced instruction and experiential learning opportunities.
(3) Teacher professional development focused on instruction to high‑achieving students from under‑represented populations.
(4) Implementation of programs that increase access to post‑secondary education.
(5) Expanding access to AIG and advanced classes such as eighth grade Math I and Advanced Placement courses.
SECTION 7.9.(b) Request for Proposal. – By September 1, 2018, the State Board of Education shall issue a Request for Proposal (RFP) for the grant program. Local boards of education shall submit their proposals by November 1, 2018. The RFP shall require that proposals include the following information at a minimum:
(1) Description of the proposal, including the number of additional students from under‑represented populations served.
(2) Evidence‑based research that supports the proposal.
(3) Implementation plan.
(4) Plans for financial sustainability once grant money is no longer available.
SECTION 7.9.(c) Grant Awards. – By December 15, 2018, the State Board of Education shall review the proposals submitted by local boards of education and shall select up to 10 local school administrative units for grant awards. The State Board of Education may make grant awards for up to three years. A local school administrative unit may not receive more than five hundred thousand dollars ($500,000) in a single fiscal year from this grant program.
SECTION 7.9.(d) Evaluation and Reporting. – Of the funds appropriated by this act, the State Board of Education may use up to three hundred thousand dollars ($300,000) to contract with an independent research organization to evaluate the impact of this grant program. The independent research organization shall report the results of this evaluation to the Joint Legislative Education Oversight Committee, the Fiscal Research Division of the General Assembly, and the Office of State Budget and Management by September 1, 2021. The Department of Public Instruction shall report annually on the implementation of this grant program beginning on March 1, 2019.
SECTION 7.9.(e) Carryforward. – Funds unspent in the 2018‑2019 fiscal year shall not revert and shall be carried forward to implement this section.
SCHOOL RESOURCE OFFICERS
SECTION 7.10.(a) The State Board of Education shall direct the Center for School Safety to conduct an annual census of School Resource Officers located in each local education agency (LEA) across the State. The Center shall submit a report analyzing and summarizing this data to the Joint Legislative Education Oversight Committee and the State Board of Education by March 1 of each year. The report shall include at least all of the following information collected from each LEA:
(1) The total number of school resource officers.
(2) Demographic information, including gender, age, race/ethnicity, education level, years as a sworn law enforcement officer, and years as a school resource office.
(3) School resource officer‑specific training and advanced or additional training completed.
(4) The school or schools to which the school resource officers are assigned.
(5) The funding source for each school resource officer.
(6) The school type, including elementary, middle, and high school, early college, special education school, traditional, charter school, and lab school.
(7) Whether the resource officer is shared across more than one school.
(8) The law enforcement affiliation of each school resource officer.
(9) The type of compliance weapon, if any, carried by each school resource officer.
SECTION 7.10.(b) Of the funds appropriated in this act to the Department of Public Instruction, seven million dollars ($7,000,000) shall be used to increase funding to the At‑Risk Student Services allotment. The sum allotted for School Safety Officers out of this allotment is increased to fifty thousand dollars ($50,000) for each high school in an LEA that receives a principal allotment. These funds shall be used by local administrative units and charter schools to supplement and not to supplant State, local, and federal funds for school resource officers.
SECTION 7.10.(c) Section 8.36 of S.L. 2013‑360 reads as rewritten:
"SECTION 8.36. Grants
to local school administrative units, regional schools, and charter schools for
school resource officers in elementary and middle schools shall be matched on
the basis of four dollars ($4.00) in State funds for every one dollar
($1.00) in local funds for local school administrative units, regional schools,
and charter schools located as of July 1 in a development tier one area as
defined in G.S. 143B‑437.08; the basis of three dollars ($3.00) in
State funds for every one dollar ($1.00) in local funds for local school
administrative units, regional schools, and charter schools located as of July
1 in a development tier two area as defined in G.S. 143B‑437.08; and
the basis of two dollars ($2.00) in State funds for every one dollar
($1.00) in local funds and for local school administrative units,
regional schools, and charter schools located as of July 1 in a development
tier three area as defined in G.S. 143B‑437.08. Funds shall be
used to supplement and not to supplant State, local, and federal funds for
school resource officers.
The State Board of Education shall include need‑based considerations in its criteria for awarding these grants to local school administrative units, regional schools, and charter schools.
Local school administrative units, regional schools, and charter schools may use these funds to employ school resource officers in elementary and middle schools, to train them, or both. Any such training shall include instruction on research into the social and cognitive development of elementary school and middle school children."
INSTRUCTIONAL SUPPLIES STIPEND
SECTION 7.11.(a) Effective July 1, 2018, any person paid on the State Teacher Salary Schedule and considered a classroom teacher shall receive, at the beginning of each academic school year, an annual salary stipend of one hundred fifty dollars ($150.00) to purchase classroom supplies. The stipend shall be paid to teachers qualifying under this section who begin employment part‑way through the academic year.
SECTION 7.11.(b) Notwithstanding G.S. 135‑1(7a), the stipends paid under this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System.
SECTION 7.11.(c) Of the funds appropriated to the Department of Public Instruction for the purpose of carrying out this section, the Department shall transfer the amount required to pay the instructional supplies stipend to classroom teachers at schools operated by the Department of Health and Human Services, the Department of Public Safety, the State Board of Education, and the School of Science and Mathematics of The University of North Carolina.
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 $3,550
1 $3,675
2 $3,780
3 $3,855
4 $3,930
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 $5,000
16 $5,025
17 $5,050
18 $5,075
19 $5,100
20 $5,125
21 $5,150
22 $5,175
23 $5,200
24 $5,250
25 $5,300
26 $5,390
27 $5,415
28 $5,440
29 $5,465
30+ $5,490
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 one and three‑quarters percent (1.75%) higher than the salary received by these same employees on the twenty‑fifth step of the salary schedule. The twenty‑seventh step of the salary schedule for these employees shall be five percent (5%) higher than the salary received by these same employees on the twenty‑sixth step of the salary schedule. Each subsequent step on the salary schedule shall be fifty dollars ($50.00) per month higher than the salary of the prior step.
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 principal salary schedule is composed of two elements, the base schedule and the complementary schedule, and shall apply for the 2018‑2019 fiscal year, beginning July 1, 2018. The first step of the base schedule is calculated using an annual rate of pay equivalent to 12 months of the monthly rate of pay for teachers on the tenth step of the "A" salary schedule, plus twenty‑four percent (24%).
2018‑2019 Principal Annual Salary Schedule
Base Schedule
Years of Experience Annual Salary
0 $66,960
1 $68,299
2 $69,665
3 $71,058
4 $72,124
5 $73,206
6 $74,304
7 $75,233
8 $76,173
9 $77,125
10 $77,896
11 $78,675
12 $79,462
13 $80,058
14 $80,658
15 $81,263
16 $81,669
17 $82,077
18 $82,487
19 $82,899
20+ $83,313
Complementary Schedule
Avg. Daily Membership Annual Supplement
0‑400 $0
401‑700 $1,500
701‑1,000 $3,000
1,001‑1,300 $4,500
1,300+ $6,000
SECTION 8.2.(b) A principal's placement on the base salary schedule shall be determined by the principal's total number of years of experience as a principal and shall not include years spent as a teacher or assistant principal. A principal's placement on the complementary schedule shall be determined according to the prior year's average daily membership (ADM) of the school supervised by the principal. A principal shall be paid at the highest amount for which the principal qualifies.
SECTION 8.2.(c) 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 those at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
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 subsections (a) and (b) of this section.
(2) For the 2018‑2019 fiscal year only, the salary the principal received in the 2017‑2018 fiscal year pursuant to Section 8.2 of S.L. 2017‑57.
(3) 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 9.2 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.
(4) For principals who were not eligible for longevity in the 2016‑2017 school year, the salary the principal received in the 2016‑2017 fiscal year pursuant to Section 9.2 of S.L. 2016‑94.
SECTION 8.2.(f) Section 8.3 of S.L. 2017‑57 is repealed.
PRINCIPAL BONUSES EFFECTIVE JULY 1, 2019
SECTION 8.3.(a) Section 8.4 of S.L. 2017‑57 is repealed effective June 30, 2018.
SECTION 8.3.(b) The State Board of Education, in consultation with local superintendents, the Office of State Budget and Management, and stakeholder groups, shall develop a Principal Bonus Program (program) to reward high‑performing principals and attract principals to hard‑to‑staff schools. The State Board of Education may develop one or more bonuses as components of this program. The Department of Public Instruction shall administer the program in accordance with policies developed by the State Board of Education.
SECTION 8.3.(c) Of the funds appropriated for compensation increases in S.L. 2017‑57, up to seven million dollars ($7,000,000) shall be used to fund the Principal Bonus Program.
SECTION 8.3.(d) In developing the program, the State Board of Education shall:
(1) Use Education Value‑Added Assessment System (EVAAS) growth scores in the development of at least one bonus within the program.
(2) Develop a bonus that encourages high‑performing principals to move to low‑performing schools.
(3) Consider the differing needs and strategic goals of local school administrative units.
(4) Create an allocation formula for the funds appropriated for the Principal Bonus Program to local school administrative units.
(5) Define eligibility criteria that principals must meet to be eligible for the program.
SECTION 8.3.(e) Principals no longer employed as a principal due to resignation, dismissal, reduction in force, death, or retirement, or whose last workday is prior to the start of the fiscal year in which the bonus will be granted, shall not be eligible for any bonuses developed under this section. Principals employed in charter schools, regional schools, and University of North Carolina laboratory schools shall not be eligible for any bonuses developed under this section.
SECTION 8.3.(f) 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.(g) The State Board of Education shall report on the planned policies and procedures of the Principal Bonus Program to the Joint Legislative Education Oversight Committee and the Fiscal Research Division no later than April 15, 2019.
SECTION 8.3.(h) The Friday Institute for Educational Innovation at North Carolina State University (Friday Institute) shall study the effect of the bonuses awarded pursuant to this section on principal performance and retention. In developing the evaluation, the Friday Institute shall, to the extent possible, do the following:
(1) Consider factors such as school size, location, and grade span.
(2) Consider principal specific factors such as years of experience as a principal, total years of experience in a certified position, and credentials.
(3) Compare results to similar states without a bonus, with historical North Carolina data prior to any principal bonuses, and to North Carolina data from period with different principal bonus structures.
(4) Determine the extent to which results can be attributed to bonuses as opposed to other variables.
The Friday Institute shall report the results of its findings and the distribution of statewide bonuses to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management by September 1, 2022.
SECTION 8.4.(a) For the 2018‑2019 fiscal year, commencing 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 9.2 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 9.2 of S.L. 2016‑94.
SECTION 8.4.(f) Section 8.5 of S.L. 2017‑57 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 $3,629 to $6,631
School Administrator II $3,833 to $7,026
School Administrator III $4,055 to $7,446
School Administrator IV $4,205 to $7,737
School Administrator V $4,369 to $8,045
School Administrator VI $4,621 to $8,523
School Administrator VII $4,797 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 $5,078 to $9,393
Superintendent II $5,378 to $9,953
Superintendent III $5,698 to $10,551
Superintendent IV $6,039 to $11,184
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, 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 the greater of one thousand two hundred fifty dollars ($1,250) or 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) Section 8.7 of S.L. 2017‑57 is repealed.
STUDENT SUPPORT SERVICES PERSONNEL COMPENSATION AND EMPLOYMENT STUDY
SECTION 8.7. The State Board of Education shall study and make recommendations on the allotment and compensation of school‑based personnel for student support services, including school social workers, counselors, nurses, and psychologists. No later than January 15, 2019, the Department shall submit to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management a report containing, at a minimum, the following information:
(1) A detailed explanation of how student support services personnel are compensated and employed in public schools, including a review of salary schedules, funding sources, and allotment categories used to support these personnel.
(2) A review of local supplements for these personnel.
(3) An analysis of optimal staffing per student ratio based on a team approach to providing a continuum of school mental health services and the impact of that ratio on allotment ratios.
(4) The challenges of recruiting and retaining student support services personnel faced by local school administrative units.
(5) Recommendations to improve student access to a continuum of school mental health services.
SECTION 8.8. G.S. 115C‑325.4 reads as rewritten:
"§ 115C‑325.4. Dismissal or demotion for cause.
(a) Grounds. – No teacher shall be dismissed, demoted, or reduced to employment on a part‑time basis for disciplinary reasons during the term of the contract except for one or more of the following:
(1) Inadequate performance. In determining whether the professional performance of a teacher is adequate, consideration shall be given to regular and special evaluation reports prepared in accordance with the published policy of the employing local school administrative unit and to any published standards of performance which shall have been adopted by the board. Inadequate performance for a teacher shall mean (i) the failure to perform at a proficient level on any standard of the evaluation instrument or (ii) otherwise performing in a manner that is below standard.
…
(15) A justifiable decrease in average daily membership or the number of positions due to district reorganization, decreased enrollment, or decreased funding.
…."
TECHNICAL CHANGES TO CERTAIN BONUS PROVISIONS
SECTION 8.9.(a) Section 8.8(a) of S.L. 2016‑94, as amended by Section 8.8B(a) of S.L. 2017‑57, reads as rewritten:
"SECTION 8.8.(a) The State Board of Education shall establish the Advanced Placement/International Baccalaureate/Cambridge AICE Program (program) to reward advanced course teacher performance and to encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer bonus pay to teachers of advanced courses in public schools, including charter schools, beginning with data from the 2015‑2016 school year, in accordance with the following:
…
(3) Bonuses awarded pursuant
to this subsection are payable in January, based on data from the previous
school year, to qualifying teachers who remain employed teaching in the same
local school administrative unit at least from the school year the data is
collected until the corresponding school year date that the bonus
is paid."
SECTION 8.9.(b) Section 8.9(a) of S.L. 2016‑94, as amended by Section 8.8B(b) of S.L. 2017‑57, reads as rewritten:
"SECTION 8.9.(a) The State Board of Education, in collaboration with the Department of Commerce, shall establish the Industry Certifications and Credentials Teacher Bonus Program (program) to reward the performance of teachers in public schools, including charter schools, who teach students earning approved industry certifications or credentials consistent with G.S. 115C‑156.2 and to encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer bonus pay to teachers in public schools, including charter schools, who teach students earning approved industry certifications or credentials, beginning with data from the 2015‑2016 school year, in accordance with the following:
...
(4) Bonuses awarded pursuant
to this subsection are payable in January to qualifying teachers who remain
employed teaching in the same local school administrative unit at least from
the school year the data is collected until the corresponding school year date
that the bonus is paid."
SECTION 8.9.(c) Section 8.8C(a) of S.L. 2017‑57 reads as rewritten:
"SECTION 8.8C.(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 Third Grade Read to Achieve Teacher Bonus Program (program) for the 2018‑2019 fiscal year to qualifying teachers who have an Education Value‑Added Assessment System (EVAAS) student growth index score for third grade reading from the previous school year, as follows:
(1) For purposes of this section, the following definitions shall apply:
…
b. Qualifying Teacher. – An
eligible teacher who remains teaching in the same local school administrative
unit at least from the school year the data for the EVAAS student growth index
score for third grade reading is collected until the school year date
a bonus provided under this subsection is paid.
…."
PART IX. COMMUNITY COLLEGES
EXTEND TIME LINE FOR REORGANIZATION OF THE COMMUNITY COLLEGES SYSTEM OFFICE
SECTION 9.1. Section 9.1 of S.L. 2017‑57 reads as rewritten:
"SECTION 9.1.(a) 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, May 1, 2019, the President of the North Carolina Community
Colleges shall report 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, 2018.2019."
NC JOB READY (WORKFORCE) – NC GETTING READY FOR OPPORTUNITIES IN THE WORKFORCE (NC GROW) SCHOLARSHIPS
SECTION 9.2.(a) There is established the North Carolina Getting Ready for Opportunities in the Workforce (NC GROW) Scholarship Program to be administered by the North Carolina State Education Assistance Authority (SEAA) in collaboration with the State Board of Community Colleges. The Program is funded by allocations from the NC Job Ready Fund as directed in G.S. 93‑6.3.
SECTION 9.2.(b) The State Board of Community Colleges, in collaboration with the Department of Commerce, shall determine the eligible programs of study for the NC GROW Scholarships. The eligible programs of study shall include programs in Architecture and Construction, Health Sciences, Information Technology, and Manufacturing, and may include other programs to meet local workforce needs.
SECTION 9.2.(c) The North Carolina Community College System shall contract with SEAA to administer awards under the NC GROW Scholarship Program. SEAA is authorized to administer this program consistent with the manner in which it administers grants to community college students qualifying for the Scholarships for Needy Students under Article 35A of Chapter 115C of the General Statutes and the Need‑Based Assistance Program under G.S. 115D‑40.1, so that no qualifying North Carolina student incurs costs of tuition and selected fees to attend a community college. Of the funds appropriated in fiscal year 2018‑2019, up to five hundred thousand dollars ($500,000) may be used for program administration and outreach. These efforts shall be used to encourage students to pursue coursework in the selected programs of study.
SECTION 9.2.(d) The State Board of Community Colleges shall establish criteria for initial and continuing eligibility to participate in the NC GROW Scholarship Program. At a minimum, the criteria shall require an eligible student to:
(1) Be a legal resident of North Carolina for tuition purposes.
(2) Be enrolled in an eligible program of study in areas of high, in‑demand training.
(3) Have unmet financial need for tuition and selected fees remaining after exhausting eligibility for federal and other State‑funded financial aid.
(4) Maintain a 2.0 or higher grade‑point average to remain eligible for this assistance in future years.
(5) Maintain satisfactory academic progress, as determined by the community college.
SECTION 9.2.(e) The North Carolina Community College System and SEAA shall report annually on:
(1) The number of students receiving awards.
(2) The average award per recipient.
(3) The enrollment (by headcount and FTE) in each selected program of study.
(4) The number of graduates produced in each selected program of study.
(5) The graduation rate of students receiving a scholarship grant under this program.
SECTION 9.2.(f) Forward Funding. – Funds appropriated for the NC GROW Scholarship Program in the current fiscal year shall not revert and shall be used to make scholarship awards in the following fiscal year.
NC JOB READY (WORKFORCE) – NC GROW SCHOLARSHIPS FOR INDUSTRY CREDENTIALS
SECTION 9.3.(a) From funds appropriated in this act for the NC GROW scholarship program for students pursuing industry credentials, the State Board of Community Colleges shall determine the allocation of awards to students pursuing short‑term, noncredit State and industry workforce credentials. The State Board of Community Colleges, in collaboration with the Department of Commerce, shall determine the eligible programs of study for this financial assistance. The eligible programs of study shall include programs in Architecture and Construction, Health Sciences, Information Technology, and Manufacturing, and may include other programs to meet local workforce needs. These funds shall be used to assist students with any education‑related costs incurred while in pursuit of these credentials.
SECTION 9.3.(b) From funds appropriated for the NC GROW scholarship program's financial assistance to students pursuing industry credentials, up to two hundred thousand ($200,000) dollars may be used to market the financial assistance to prospective recipients.
CLARIFY CAREER‑ AND COLLEGE‑READY GRADUATE PROGRAM
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 NC 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 2018-2019 2020‑2021
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 of periodically 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.
(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 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."
CONTINUE WORKFORCE INVESTMENT ACT APPRENTICESHIPNC TRANSFER
SECTION 9.5. Of the Workforce Investment Act funds awarded to the North Carolina Department of Commerce by the United States Department of Labor, the sum of three hundred fifty thousand dollars ($350,000) shall be transferred to the Community Colleges System Office for the administration of ApprenticeshipNC on a recurring basis each fiscal year.
INSTRUCTION IN JAILS
SECTION 9.6. Section 8.3(b) of S.L. 2010‑31 reads as rewritten:
"SECTION 8.3.(b)
Courses in federal prisons or local jails shall not earn regular budget
full‑time equivalents, but may be offered on a self‑supporting
basis."
REMOVE OUTDATED COMMUNITY COLLEGE STATUTORY REFERENCES
SECTION 9.7.(a) G.S. 115D‑42 is repealed.
SECTION 9.7.(b) The cash balance remaining in the Instructional Trust Fund in Budget Code 66800, Fund Code 6125, shall be returned to the Escheat Fund.
SECTION 9.7.(c) G.S. 115D‑2 reads as rewritten:
"§ 115D‑2. Definitions.
As used in this Chapter:
…
(4) The term "regional
institution" means an institution whose service area as assigned by the
State Board of Community Colleges includes three or more provided, however,
any institution receiving funds as a regional institution on May 1, 1987, shall
continue to receive funds on that basis.counties.
…."
SECTION 9.7.(d) G.S. 115D‑31(a)(3) is repealed.
SECTION 9.7.(e) G.S. 115D‑31.2 is repealed.
PART X. UNIVERSITIES
STUDENT SUCCESS INITIATIVES REPORT
SECTION 10.1. No later than September 1, 2019, the President of The University of North Carolina shall report to the Joint Legislative Education Oversight Committee regarding the expenditure of State funds used to support various initiatives designed to increase student retention, graduation rates, and time‑to‑degree, including funds appropriated by this act for the Student Success Innovation Lab, Accelerate through Summer Grants, and Adaptive Digital Learning Courseware pilot. The report shall include allocation methodologies, funding by constituent institution, descriptions of program activities and accomplishments, data on outcome measures used to assess program effectiveness, and best practices identified.
REPEAL TUITION SURCHARGE
SECTION 10.2. G.S. 116‑143.7 is repealed.
MODIFY SHARE REDUCTION‑IN‑FORCE/REORGANIZATION‑THROUGH‑REDUCTION‑COVERAGE
SECTION 10.3. G.S. 126‑7.1(j) reads as rewritten:
"(j) A department or office listed in G.S. 126‑5(d)(1) or (2) and The University of North Carolina and its constituent institutions may reorganize and restructure its positions through a voluntary separation process, in accordance with a policy approved by the State Human Resources Commission and subject to funding and approval by the Office of State Budget and Management."
NORTH CAROLINA SCHOOL OF SCIENCE AND MATHEMATICS OVERREALIZED RECEIPTS
SECTION 10.4. G.S. 116‑30.3A reads as rewritten:
"§ 116‑30.3A. Availability of excess receipts.
Notwithstanding the provisions of Chapter 143C of the General Statutes, receipts within The University of North Carolina realized in excess of budgeted levels shall be available, up to a maximum of ten percent (10%) above budgeted levels, for each Budget Code, in addition to appropriations to support the operations generating the receipts as approved by the Director of the Budget. Notwithstanding the provisions of Chapter 143C of the General Statutes, receipts within The University of North Carolina Health Care System and the North Carolina School of Science and Mathematics realized in excess of budgeted levels shall be available above budgeted levels, for each Budget Code, in addition to appropriations to support the operations generating the receipts as approved by the Director of the Budget."
CHANGES TO STATUTORY REFERENCES TO UNC GENERAL ADMINISTRATION
SECTION 10.5. In any instances in the General Statutes in which there is a reference to The University of North Carolina General Administration or a derivative thereof, the Revisor of Statutes may replace that reference with a reference to The University of North Carolina System Office, as appropriate.
UNC CARRYFORWARD INCREASE/MUST BE USED FOR REPAIRS AND RENOVATIONS
SECTION 10.6. G.S. 116‑30.3 reads as rewritten:
"§ 116‑30.3. Reversions.
(a) Of the General Fund
current operations appropriations credit balance remaining at the end of each
fiscal year in each of the budget codes listed in this subsection, any amount
of the General Fund appropriation for that budget code for that fiscal year (i)
may be carried forward to the next fiscal year in that budget code, (ii) is
appropriated in that budget code, and (iii) may be used for any of the purposes
set out in subsection (f) of this section. However, the amount carried forward
in each budget code under this subsection shall not exceed two and one‑half
percent (2.5%) five percent (5%) of the General Fund appropriation
in that budget code. The Director of the Budget, under the authority set forth
in G.S. 143C‑6‑2, shall establish the General Fund current
operations credit balance remaining in each budget code.
The budget codes that may carry forward a General Fund current operations appropriations credit balance remaining at the end of each fiscal year pursuant to this section are the budget codes for each of the following:
…
(f) Funds carried forward pursuant to subsection (a) of this section up to two and one‑half percent (2.5%) of the General Fund appropriation in that budget code may be used for one‑time expenditures, provided, however, that the expenditures shall not impose additional financial obligations on the State and shall not be used to support positions. Funds carried forward in excess of two and one‑half percent (2.5%) of the General Fund appropriation in that budget code shall be used only for projects that are eligible to receive funds from the Repairs and Renovations Reserve under G.S. 143C‑4‑3(b)."
FINISH LINE GRANTS
SECTION 10.7.(a) The State Board of Community Colleges, the Board of Governors of The University of North Carolina, and the President of The North Carolina Independent Colleges and Universities shall develop program guidelines and shall determine the allocation of funds appropriated in this act for the student Finish Line Grants for their respective systems. Funding for Finish Line Grants in each system is supported by the NC Job Ready Fund via allocations directed in G.S. 93‑6.3.
SECTION 10.7.(b) Students may receive grants of up to one thousand dollars ($1,000) per semester for documented financial emergencies that threaten their ability to remain enrolled to complete their program of study. To be eligible to receive an award, students must be North Carolina residents, have a minimum cumulative grade point average of 2.0, and must be within 15 credit hours of earning an associate's degree or within 30 credit hours of earning a four‑year degree.
SECTION 10.7.(c) The State Board of Community Colleges, the Board of Governors of The University of North Carolina, and the President of The North Carolina Independent Colleges and Universities shall report annually on:
(1) The number of applicants.
(2) The type of emergency cited by the applicant.
(3) The number of students receiving awards.
(4) The average award per recipient.
(5) The number of recipients who have completed within one year of receiving aid.
NORTH CAROLINA SCHOOL OF SCIENCE AND MATHEMATICS TUITION GRANT
SECTION 10.8. Article 29 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑239. Full tuition grant for graduates who attend a State university.
(a) There is granted to each State resident who graduates from the North Carolina School of Science and Mathematics and who enrolls as a full‑time student in a constituent institution of The University of North Carolina a sum to be determined by the General Assembly as a tuition grant. The tuition grant shall be for four consecutive academic years and shall cover the tuition cost at the constituent institution in which the student is enrolled. The tuition grant shall be distributed to the student as provided by this section.
(b) The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section. The State Education Assistance Authority shall not approve any grant until it receives proper certification from the appropriate constituent institution that the student applying for the grant is an eligible student. Upon receipt of the certification, the State Education Assistance Authority shall remit at the times it prescribes the grant to the constituent institution on behalf, and to the credit, of the student.
(c) In the event a student on whose behalf a grant has been paid is not enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority.
(d) In the event there are not sufficient funds to provide each eligible student with a full grant:
(1) The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2) Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
(e) The State Education Assistance Authority may use up to five percent (5%) of the funds appropriated in each fiscal year for administrative costs of the program. Any funds remaining after the award of grants and administration shall revert to the General Fund.
(f) Notwithstanding any other provision of this section, 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 subsection, 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 State Education Assistance Authority. The State Education Assistance 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 State Education Assistance Authority for each constituent institution."
WAIVE TUITION FOR DEPENDENTS OF FALLEN CORRECTIONAL OFFICERS
SECTION 10.9.(a) G.S. 115B‑1 reads as rewritten:
"§ 115B‑1. Definitions.
The following definitions apply in this Chapter:
…
(4) Permanently and totally
disabled as a direct result of a traumatic injury sustained in the line of
duty. – A person: (i) who as a law enforcement officer, firefighter, volunteer
firefighter, or rescue squad worker worker, or correctional
officer suffered a disabling injury while in active service or training for
active service, (ii) who at the time of active service or training was a North
Carolina resident, and (iii) who has been determined to be permanently and totally
disabled for compensation purposes by the North Carolina Industrial Commission.
…
(6) Survivor. – Any person
whose parent, legal guardian, legal custodian, or spouse: (i) was a law
enforcement officer, a firefighter, a volunteer firefighter, or a rescue
squad worker, or a correctional officer, (ii) was killed while in active
service or training for active service or died as a result of a service‑connected
disability, and (iii) at the time of active service or training was a North
Carolina resident. The term does not include the widow or widower of a law
enforcement officer, firefighter, volunteer firefighter, or a rescue
squad worker worker, or a correctional officer if the widow or
widower has remarried.
…."
SECTION 10.9.(b) G.S. 115B‑2(a) reads as rewritten:
"(a) The constituent institutions of The University of North Carolina and the community colleges as defined in G.S. 115D‑2(2) shall permit the following persons to attend classes for credit or noncredit purposes without the required payment of tuition:
(1) Repealed by Session Laws 2009‑451, s. 8.11(a), effective July 1, 2009.
(2) Any person who is the
survivor of a law enforcement officer, firefighter, volunteer firefighter, or
rescue squad worker worker, or correctional officer killed as
a direct result of a traumatic injury sustained in the line of duty.
(3) The spouse of a law
enforcement officer, firefighter, volunteer firefighter, or rescue squad
worker worker, or correctional officer who is permanently and
totally disabled as a direct result of a traumatic injury sustained in the line
of duty.
(4) Any child, if the child
is at least 17 years old but not yet 24 years old, whose parent, legal
guardian, or legal custodian is a law enforcement officer, firefighter,
volunteer firefighter, or rescue squad worker worker, or
correctional officer who is permanently and totally disabled as a direct
result of a traumatic injury sustained in the line of duty. However, a child's
eligibility for a waiver of tuition under this Chapter shall not exceed: (i) 54
months, if the child is seeking a baccalaureate degree, or (ii) if the child is
not seeking a baccalaureate degree, the number of months required to complete
the educational program to which the child is applying.
(5) Any child, if the child (i) is at least 17 years old but not yet 24 years old, (ii) is a ward of North Carolina or was a ward of the State at the time the child reached the age of 18, (iii) is a resident of the State; and (iv) is eligible for services under the Chaffee Education and Training Vouchers Program; but the waiver shall only be to the extent that there is any tuition still payable after receipt of other financial aid received by the student.
(6) Any child enrolled in a regional school established pursuant to Part 10 of Article 16 of Chapter 115C of the General Statutes who enrolls in classes at a constituent institution or community college which has a written agreement with the regional school."
SECTION 10.9.(c) G.S. 115B‑5(b) reads as rewritten:
"(b) The officials of the institutions charged with administration of this Chapter shall require the following proof to insure that a person applying to the institution and who requests a tuition waiver under G.S. 115B‑2(a)(2), (3), or (4) is eligible for the benefits provided by this Chapter.
(1) The parent‑child relationship shall be verified by a birth certificate, legal adoption papers, or other documentary evidence deemed appropriate by the institution.
(1a) The legal guardian‑child relationship shall be verified by an order from a court proceeding that established the legal guardianship.
(1b) The legal custodian‑child relationship shall be verified by an order from a court proceeding that established the legal custodianship.
(2) The marital relationship shall be verified by a marriage certificate or other documentary evidence deemed appropriate by the institution.
(3) The cause of death of the
law enforcement officer, firefighter, volunteer firefighter, or rescue
squad worker worker, or correctional officer shall be verified by
certification from the records of the Department of State Treasurer, the
appropriate city or county law enforcement agency that employed the deceased,
the administrative agency for the fire department or fire protection district
recognized for funding under the Department of State Auditor, or the
administrative agency having jurisdiction over any paid firefighters of all
counties and cities.
(4) The permanent and total disability shall be verified by documentation deemed necessary by the institution from the North Carolina Industrial Commission."
SUBPART X‑A. UNIVERSITY/STATE EDUCATION ASSISTANCE AUTHORITY
NORTH CAROLINA TEACHING FELLOWS
SECTION 10A.1.(a) G.S. 116‑209.60 reads as rewritten:
"§ 116‑209.60. Definitions.
The following definitions apply in this Part:
(1) Commission. – The North Carolina Teaching Fellows Commission.
(2) Director. – The Director of the North Carolina Teaching Fellows Program.
(3) Forgivable loan. – A forgivable loan made under the Program.
(4) Program. – The North Carolina Teaching Fellows Program.
(5) Public school. – An elementary or secondary school located in North Carolina that is governed by a local board of education, charter school board of directors, regional school board of directors, or University of North Carolina laboratory school board of trustees.
(6) STEM. – Science, technology, engineering, and
mathematics.
(7) Trust Fund. – The North Carolina Teaching Fellows Program Trust Fund."
SECTION 10A.1.(b) G.S. 116‑209.62 reads as rewritten:
"§ 116‑209.62. North Carolina Teaching Fellows Program established; administration.
(a) Program. – There is
established the North Carolina Teaching Fellows Program to be administered by
the General Administration of The University of North Carolina, in conjunction
with the Authority and the Commission. The purpose of the Program is to
recruit, prepare, and support students residing in or attending institutions of
higher education located in North Carolina for preparation as highly effective STEM
or special education teachers in the State's public schools. The Program
shall be used to provide a forgivable loan to individuals interested in
preparing to teach in the public schools of the State in STEM or special
education licensure areas.State.
(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, (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 teaching
positions 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, and (iii) extracurricular enhancement activities of the Program. The
At the beginning of each fiscal year, the Authority may use up to
six hundred thousand dollars ($600,000) shall transfer the greater of
three hundred fifty thousand dollars ($350,000) or six percent (6%) of
available funds from the Trust Fund in each fiscal year for its to
The University of North Carolina System Office for 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. The Authority may retain the greater of four percent (4%) of the
funds appropriated or two hundred fifty thousand dollars ($250,000) each fiscal
year for administrative costs associated with the scholarship grant program.
(d) Director of the Program.
– The Board of Governors of The University of North Carolina shall appoint a
Director of the Program. The Director shall appoint staff to the Commission and
shall be responsible for recruitment and coordination of the Program, including
proactive, aggressive, and strategic recruitment of potential recipients.
Recruitment activities shall include (i) targeting regions of the State with
the highest teacher attrition rates and teacher recruitment challenges, challenges
and (ii) actively engaging with educators, business leaders, experts in
human resources, elected officials, and other community leaders throughout the State,
and (iii) attracting candidates in STEM and special education licensure areas
to the Program. State. The Director shall report to the President of
The University of North Carolina. The Authority shall provide office space and
clerical support staff, as necessary, to the Director for the Program.
(e) Student Selection Criteria for Forgivable Loans. – The Commission shall adopt stringent standards for awarding forgivable loans based on multiple measures to ensure that only the strongest applicants receive them, including the following:
(1) Grade point averages.
(2) Performance on relevant career and college readiness assessments.
(3) Experience, accomplishments, and other criteria demonstrating qualities positively correlated with highly effective teachers, including excellent verbal and communication skills.
(4) Demonstrated commitment to serve in a STEM or special education licensure area in North Carolina public schools.
(f) Program Selection
Criteria. – The Authority shall administer the Program in cooperation with five
institutions any institution of higher education with approved a
State Board of Education‑approved educator preparation programs program
selected by the Commission that represent both postsecondary constituent
institutions of The University of North Carolina and private postsecondary
institutions operating in the State.The Commission shall adopt stringent
standards for selection of the most effective educator preparation programs,
including the following:
(1) Demonstrates high rates of educator
effectiveness on value‑added models and teacher evaluations, including
using performance‑based, subject‑specific assessment and support
systems, such as edTPA or other metrics of evaluating candidate effectiveness
that have predictive validity.
(2) Demonstrates measurable impact of prior
graduates on student learning, including impact of graduates teaching in STEM
or special education licensure areas.
(3) Demonstrates high rates of graduates passing
exams required for teacher licensure.
(4) Provides curricular and co‑curricular
enhancements in leadership, facilitates learning for diverse learners, and
promotes community engagement, classroom management, and reflection and
assessment.
(5) Requires at least a minor concentration of study
in the subject area that the candidate may teach.
(6) Provides early and frequent internship or
practical experiences, including the opportunity for participants to perform
practicums in diverse school environments.
(7) Is approved by the State Board of Education as
an educator preparation program.
(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 thousand two hundred fifty
dollars ($8,250) per year 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 thousand two hundred fifty dollars
($8,250) per year 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 thousand two hundred fifty dollars ($8,250) per
year 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 thousand two
hundred fifty dollars ($8,250) per year for up to two years.four
semesters.
Forgivable loans may be used for tuition,
fees, and the cost of books.books, and other qualified
expenses as defined by the Authority.
(h) Identification of STEM and Special Education
Licensure Areas. – The Superintendent of Public Instruction shall identify and
provide to the Commission and the Authority a list of STEM and special
education licensure areas and shall annually provide to the Commission the
number of available positions in each licensure area relative to the number of
current and anticipated teachers in that area of licensure. The Commission
shall make the list of STEM and special education licensure areas readily
available to applicants.
(i) Administration of Forgivable Loan Awards. – Upon the naming of recipients of the forgivable loans by the Commission, the Commission shall transfer to the Authority its decisions. The Authority, in coordination with the Director, shall perform all of the administrative functions necessary to implement this Part, which functions shall include rule making, disseminating information, acting as a liaison with participating institutions of higher education, implementing forgivable loan agreements, loan monitoring, loan cancelling through service and collection, determining the acceptability of service repayment agreements, enforcing the agreements, and all other functions necessary for the execution, payment, and enforcement of promissory notes required under this Part.
(j) Annual Report. – The Commission, in coordination with the Authority, the Department of Public Instruction, and participating educator preparation programs, shall report no later than January 1, 2019, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the following:
(1) Forgivable loans awarded from the Trust Fund, including the following:
a. Demographic information regarding recipients.
b. Number of recipients by institution of higher education and program.
c. Information on number of
recipients by anticipated STEM and special education licensure area.
(2) Placement and repayment rates, including the following:
a. Number of graduates who
have been employed in a STEM or special education North Carolina
public school by licensure area within two years of program completion.
b. Number of graduates who accepted employment at a low‑performing school identified under G.S. 115C‑105.37 as part of their years of service.
c. Number of graduates who have elected to do loan repayment and their years of service, if any, prior to beginning loan repayment.
d. Number of graduates
employed in a STEM or special education by licensure area who
have received an overall rating of at least accomplished and have met expected
growth on applicable standards of the teacher evaluation instrument.
e. Aggregate information on
student growth and proficiency in courses taught by graduates who have
fulfilled service requirements through employment in a STEM or special
education licensure area.requirements.
(3) Selected school outcomes by program, including the following:
a. Turnover rate for forgivable loan graduates.
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.1.(c) G.S. 116‑209.63 reads as rewritten:
"§ 116‑209.63. Terms of forgivable loans; receipt and disbursement of funds.
(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 initial teacher licensure or 90 days after termination
of the forgivable loan, whichever is earlier. graduation, whichever is
later. Notwithstanding the previous sentence, if the forgivable loan is
terminated, the note shall be made payable to the Authority within 90 days
after the 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.
(b) Forgiveness. – The
Authority shall forgive the loan and any interest accrued on the loan if,
within 10 years after graduation from a program leading to initial teacher
licensure, exclusive of any authorized deferment for extenuating circumstances,
the recipient serves as a teacher in a STEM or special education licensure
area, as provided in G.S. 116‑209.62(h), teacher for
every year the teacher was awarded the forgivable loan, in any combination of
the following:
(1) One year at a North Carolina public school identified as low‑performing under G.S. 115C‑105.37 at the time the teacher accepts employment at the school or, if the teacher changes employment during this period, at another school identified as low‑performing.
(2) Two years at a North Carolina public school not identified as low‑performing under G.S. 115C‑105.37.
The Authority shall also forgive the loan if it finds that it is impossible for the recipient to work for up to eight years, within 10 years after completion of the program leading to initial teacher licensure, at a North Carolina public school because of the death or permanent disability of the recipient. If the recipient repays the forgivable loan by cash payments, all indebtedness shall be repaid within 10 years after completion of the program leading to initial teacher licensure supported by the forgivable loan. If the recipient completes a program leading to initial teacher licensure, payment of principal and interest shall begin no later than the first day of September after the completion of the program. Should a recipient present extenuating circumstances, the Authority may extend the period to repay the loan in cash to no more than a total of 12 years."
NORTH CAROLINA PRINCIPAL FELLOWS ADMINISTRATION
SECTION 10A.2. G.S. 116‑74.43 reads as rewritten:
"§ 116‑74.43. Terms of loans; receipt and disbursement of funds.
…
(c) All funds appropriated
to, or otherwise received by, the Principal Fellows Program for scholarships,
all funds received as repayment of scholarship loans, and all interest earned
on these funds, shall be placed in a university trust fund. This university
trust fund may be used only for scholarship loans granted under the Principal
Fellows Program and administrative costs associated with the recovery of funds
advanced under the program.The monies in the Trust Fund may be used only
for (i) scholarship loans granted under the Principal Fellows Program; (ii)
administrative costs associated with the Program, including recovery of funds
advanced under the Program; and (iii) data collection, evaluation, and
extracurricular enhancement activities associated with the Program. The
Authority may use up to three hundred fifty thousand dollars ($350,000) or ten
percent (10%) of available funds from the Trust Fund in each fiscal year for
its administrative costs, the salary of the Director of the Program, expenses
of the Commission, data collection and evaluation, and extracurricular
enhancement activities."
OPPORTUNITY SCHOLARSHIPS/ELIMINATE STATUTORY INCREASE/PROVIDE FOR ASSESSMENTS OF STUDENT LEARNING
SECTION 10A.3.(a) G.S. 115C‑562.8(b) is repealed.
SECTION 10A.3.(b) G.S. 115C‑562.8(c) reads as rewritten:
"(c) Of the funds allocated to the Authority to award
scholarship grants under this Part, the Authority may retain the lesser of up
to four percent (4%) of the funds appropriated or one million five hundred
thousand dollars ($1,500,000) two million dollars ($2,000,000) each
fiscal year for administrative costs associated with the scholarship grant program.program
and the costs of evaluating gains and losses in student learning as required by
G.S. 115C‑562.7(c)(1)."
SECTION 10A.3.(c) G.S. 115C‑562.5(a)(4) reads as rewritten:
"(4) Administer, at
least once in each school year, a nationally standardized test or other
nationally standardized equivalent measurement selected by the chief
administrative officer of the nonpublic school Administer annually the
tests and assessments required in Article 10A of Chapter 115C of the General
Statutes to all eligible students whose tuition and fees are paid in whole
or in part with a scholarship grant enrolled in grades three and higher. The
nationally standardized test or other equivalent measurement selected must
measure achievement in the areas of English grammar, reading, spelling, and
mathematics. Test performance data shall be submitted to the Authority by
July 15 of each year. Test performance data reported to the Authority under
this subdivision is not a public record under Chapter 132 of the General
Statutes."
SECTION 10A.3.(d) The State Education Assistance Authority shall not award scholarship funds to new recipients pursuant to Part 2A of Article 39 of Subchapter X of Chapter 115C of the General Statutes after the 2018‑2019 academic year.
PART XI. DEPARTMENT OF HEALTH AND HUMAN SERVICES
SUBPART XI‑A. CENTRAL MANAGEMENT AND SUPPORT
MAXIMIZE THE USE OF TRANSITIONS TO COMMUNITY LIVING FUNDING FOR REQUIRED SERVICES
SECTION 11A.1. G.S. 122E‑3.1(b) reads as rewritten:
"(b) Creation and Source of Funds. – The Community Living Housing Fund is established within the Housing Finance Agency to pay for the transition of individuals diagnosed with severe mental illness or severe and persistent mental illness as defined in G.S. 122C‑20.5 from institutional settings to integrated, community‑based supported housing and to increase the percentage of targeted housing units available to individuals with disabilities for use in the North Carolina Supportive Housing Program under Article 1B of Chapter 122C of the General Statutes. Beginning with fiscal year 2013‑2014, any unexpended, unencumbered balance of the amount appropriated to the Transitions to Community Living Fund established pursuant to Section 10.23A(d) of S.L. 2012‑142 at the end of each fiscal year shall not revert but shall be transferred and made available to the Community Living Housing Fund. Effective July 1, 2018, the amount of the unexpended, unencumbered funds available for transfer to the Housing Finance Agency at the end of the State fiscal year shall not be determined prior to the end of the second quarter of the new State fiscal year or on December 31."
SUBPART XI‑B. DIVISION OF CHILD DEVELOPMENT AND EARLY EDUCATION
ADDITIONAL CHILD CARE SUBSIDY MARKET RATE INCREASES/CERTAIN AGE GROUPS AND COUNTIES
SECTION 11B.1. Section 11B.4 of S.L. 2017‑57 is amended by adding a new subsection to read:
"SECTION 11B.4.(b1) Beginning October 1, 2018, 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 from age three through five years and for school‑aged children in three‑, four‑, and five‑star‑rated child care centers and homes in tier three counties."
MODERNIZE COUNTY CHILD CARE FORMULA TO ALLOW FLEXIBILITY AND APPROPRIATE PLANNING AND USE OF INCREASED RESOURCES
SECTION 11B.2. Section 11B.5(c) of S.L. 2017‑57 reads as rewritten:
"SECTION 11B.5.(c) When
implementing the formula under subsection (a) of this section, the Division
shall include the market rate increase in the formula process rather than
calculating the increases outside of the formula process. When
implementing the formula under subsection (a) of this section, the Division
shall apply market rate increases to counties outside of the formula process
according to projected cost for the first year of implementation. For the
second year of implementation and thereafter, the Division shall include the
market rate increase in the formula process, rather than calculating the
increases outside of the formula process. Additionally, the Department
shall do the following:
(1) Implement the final one
third change in a county's allocation beginning fiscal year 2018‑2019. A
county's initial allocation shall be the county's expenditure in the previous
fiscal year or a prorated share of the county's previous fiscal year
expenditures if sufficient funds are not available. With the exception of
market rate increases consistent with any increases approved by the General
Assembly, a county whose spending coefficient is less than ninety two percent
(92%) in the previous fiscal year shall receive its prior year's expenditure as
its allocation and shall not receive an increase in its allocation in the
following year. A county whose spending coefficient is at least ninety two
percent (92%) in the previous fiscal year shall receive, at a minimum, the
amount it expended in the previous fiscal year and may receive additional
funding, if available. The Division may waive this requirement and allow an
increase if the spending coefficient is below ninety two ninety‑two
percent (92%) due to extraordinary circumstances, such as a State or
federal disaster declaration in the affected county.county, or in
situations where enforcement of this requirement would be detrimental to
expanding services to children. By October 1 of each year, the Division
shall report to the Joint Legislative Oversight Committee on Health and Human
Services and the Fiscal Research Division the counties that received a waiver
pursuant to this subdivision and the reasons for the waiver.
…."
SUBPART XI‑C. DIVISION OF SOCIAL SERVICES
CRIMINAL RECORD CHECKS OF APPLICANTS AND CURRENT EMPLOYEES WHO ACCESS FEDERAL TAX INFORMATION UNDER FEDERAL LAW
SECTION 11C.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:
"§ 143B‑935.1. Criminal record checks of applicants and of current employees who access federal tax information.
(a) The Department of Public Safety may, upon request, provide to the Department of Health and Human Services, Division of Social Services, the Department of Health and Human Services, Division of Medical Assistance, 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."
ADDRESSING FEDERAL CHILD SUPPORT FEE CHANGE REQUIRED UNDER FEDERAL LAW
SECTION 11C.2. 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 dollars ($500.00) five hundred fifty dollars ($550.00) of
support, the State shall impose an annual fee of twenty-five dollars
($25.00) thirty‑five dollars ($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 dollars
($500.00) five hundred fifty dollars ($550.00) collected. The child
support agency shall use the fee to support the ongoing operation of the
program."
SUBPART XI‑D. DIVISION OF AGING AND ADULT SERVICES [reserved]
SUBPART XI‑E. DIVISION OF PUBLIC HEALTH
ALIGNING TREATMENT OF LOCAL HEALTH DEPARTMENT GRANTS WITH other DHHS PROGRAMS
SECTION 11E.1. Section 11E.3(b) of S.L. 2017‑57 reads as rewritten:
"SECTION 11E.3.(b) The plan for administering the competitive grant process shall include at least all of the following components:
…
(4) Allows grants to be
awarded to local health departments for up to two three years."
SUBPART XI‑F. DIVISION OF MH/DD/SAS AND STATE‑OPERATED HEALTH CARE FACILITIES
CORRECTIONS‑BASED MENTAL HEALTH CAPACITY RESTORATION PILOT PROGRAM
SECTION 11F.1.(a) Purpose. – The Department of Health and Human Services shall establish a pilot program for a corrections‑based mental health capacity restoration program (CRP). The purpose of the pilot program is to expand the provision of capacity restoration programming at locations in addition to the three State Psychiatric Hospitals (SPHs). The pilot program shall run for five years, beginning July 1, 2018, and ending with June 30, 2023.
SECTION 11F.1.(b) By December 31, 2018, the Department of Health and Human Services and the Department of Public Safety shall release a Request for Information (RFI) to solicit interest from counties that may be interested in providing space for the corrections‑based CRP. DHHS, in consultation with Department of Public Safety and other stakeholders, shall release a Request for Proposals (RFP) for a corrections‑based CRP program based on the information received during the RFI process. If there was not sufficient initial interest solicited via the RFI, finding a location for the CRP would be included as part of the RFP criteria. The RFP shall request that interested vendors meets at least the following criteria:
(1) To initiate the pilot in the most time‑efficient manner, with a start date set within six months of contract award date.
(2) The pilot should be conducted in a county jail that sends a high number of individuals with ITP status to the SPH. This could include the highest utilizer counties or counties that respond during the RFI process that can work collaboratively with these counties to address the need.
(3) Establish and monitor metrics that determine whether the program is successful; this might include, but would in no way be limited to, readmissions to the hospital.
SECTION 11F.1.(c) By June 30, 2019, the Department of Health and Human Services shall select a location to participate in the pilot program that represent the best location to meet the needs of the State of North Carolina to the extent possible from the pool of applicants.
SECTION 11F.1.(d) After 18 months of operation, the program should be evaluated according to metrics identified in the RFP and a determination should be made to expand the CRP to other correctional facilities, continue with the existing CRP, modify the existing CRP for additional assessment, or terminate the CRP.
SECTION 11F.1.(e) Pilot Evaluation. – The Department of Health and Human Services may award the RFP contract directly to a provider of CRP services or a single or multicounty correctional facility with whom the CRP provider is a subcontractor. The pilot program shall be evaluated for the duration of the pilot program to evaluate the implementation and success of the pilot program, including at least the following:
(1) The use of funds by the vendor awarded the RFP to provide CRP services during the pilot.
(2) Outcome data.
(3) Numbers of individuals served at the corrections‑based CRP, including number of individuals that would have received CRP services at one of the three SPH, if the corrections‑based CRP was not available.
(4) Other information the Department deems necessary.
SECTION 11F.1.(f) DHHS shall report by June 30 of each year, beginning with the initial report by June 30, 2019, and ending with a final report by June 30, 2023, to the Joint Legislative Oversight Committees for Health and Human Services and Public Safety on all aspects of the pilot program as listed in subsection (e) of this section. The Department of Health and Human Services shall include in the final report, the evaluation of the pilot program, as well as, any legislative recommendations for continuing or expanding the pilot program.
NC COMMUNITY‑BASED PSYCHIATRIC STEP‑DOWN PILOT
SECTION 11F.2.(b) In order to initiate the pilot, the Department of Health and Human Services shall develop a Request for Application (RFA) to develop a Community‑Based Psychiatric Stepdown program that demonstrates how services and supports will be provided in a holistic manner such that it enables individuals diagnosed with a serious mental illness to develop the skills necessary to become fully integrated into their communities, particularly in the areas of housing, employment, and community integration. The RFA shall, at a minimum, include the following:
(1) A supportive housing, or bridge housing model that is "consumer‑centered," based on an individual consumer's self‑identified strengths, needs, and goals.
(2) Use of evidence‑based practices, such as motivational interviewing techniques, illness management and recovery, and stages of change principles to engage individuals into service.
(3) Use of the RIST model established by the State of New Jersey to employ supportive services necessary to maintain housing, achieve identified wellness and recovery goals, as well as case management approaches to assure that consumers access the full array of other clinical, medical, vocational, educational, and supportive services needed to successfully function within the community.
SECTION 11F.2.(c) By April 1, 2019, the Department of Health and Human Services shall submit a progress report on the development and implementation of the pilot program authorized by this section to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division. At a minimum, the report shall include all of the following:
(1) The number and outcome of patients served.
(2) A breakdown of expenditures.
(3) An estimate of the cost and number to be served for the second year of the pilot.
(4) An estimate of savings of State funds in State‑operated psychiatric hospitals as a result of reducing the number of psychiatric hospital bed days for people who do not need that level of care by implementing this model.
TECHNICAL CORRECTION TO CORRECT THE AMOUNT OF AVAILABLE FUNDS FOR LOCAL INPATIENT PSYCHIATRIC BEDS OR BED DAYS
SECTION 11F.3. Section 11F.3(a) of S.L. 2017‑57 reads as rewritten:
"SECTION 11F.3.(a) Use
of Funds – Of the funds appropriated to the Department of Health and Human
Services, Division of Mental Health, Developmental Disabilities, and Substance
Abuse Services, for crisis services, the sum of forty‑one million three
hundred fifty‑one thousand six hundred forty‑four dollars
($41,351,644) in recurring funds and the sum of forty-one million three
hundred fifty-one thousand six hundred forty-four dollars ($41,351,644) in
recurring funds forty million six hundred twenty‑one thousand six
hundred forty‑four dollars ($40,621,644) for the 2018‑2019
fiscal year shall be used to purchase additional new or existing local
inpatient psychiatric beds or bed days not currently funded by or though
LME/MCOs. The Department shall continue to
implement a two‑tiered system of payment for purchasing these local
inpatient psychiatric beds or bed days based on acuity level with an enhanced
rate of payment for inpatient psychiatric beds or bed days for individuals with
higher acuity levels, as defined by the Department. The enhanced rate of
payment for inpatient psychiatric beds or bed days for individuals with higher
acuity levels shall not exceed the lowest average cost per patient bed day
among the State psychiatric hospitals. In addition, at the discretion of the
Secretary of Health and Human Services, existing funds allocated to LME/MCOs
for community‑based mental health, developmental disabilities, and
substance abuse services may be used to purchase additional local inpatient
psychiatric beds or bed days. Funds designated in this subsection for the
purchase of local inpatient psychiatric beds or bed days shall not be used to
supplant other funds appropriated or otherwise available to the Department for
the purchase of inpatient psychiatric services through contracts with local
hospitals."
USE OF DOROTHEA DIX HOSPITAL PROPERTY FUNDS for SUBSTANCE ABUSE RESIDENTIAL TREATMENT FACILITIES
SECTION 11F.4.(a) Funds for the Establishment of Substance Abuse Residential Treatment Facilities. – The remainder of 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, shall be used to pay for any renovation or building costs associated with (i) the construction of substance abuse treatment facilities, (ii) the conversion of existing facilities into substance abuse treatment facilities, or (iii) a combination of these options as follows:
(1) Six million dollars ($6,000,000) in nonrecurring funds shall be used to pay for any renovation or building costs associated with the construction of new substance abuse treatment facility by Triangle Residential Options for Substance Abuse (TROSA), Inc.
(2) The remainder of funds shall be used to create a substance abuse residential facility grant program for the purpose of renovation or building costs to create new substance abuse treatment capacity throughout the State.
Any facility or other location constructed or converted with funds allocated under this subsection for substance abuse shall be named in honor of Dorothea Dix.
SECTION 11F.4.(b) Substance Abuse Residential Treatment Facility Grant Program. – There is created a substance abuse residential facility grant program within the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the provision of new substance abuse residential treatment capacity throughout the State. Funds in the grant program shall only be available to nonprofit corporations and local governments for any of the following eligible activities:
(1) Acquisition of real property within a total project to create new substance abuse residential treatment capacity.
(2) Renovation of existing real property to create new substance abuse residential treatment capacity.
(3) Construction of a new facility to create new substance abuse residential treatment capacity.
(4) Acquisition of personal property solely for the purpose of providing treatment for substance abuse in a newly constructed, acquired, or renovated substance abuse residential treatment facility.
SECTION 11F.4.(c) Certificate of Need Exemption for Certain Facilities. – Notwithstanding the State Medical Facilities Plan, Article 9 of Chapter 131E of the General Statutes, or any other provision of law to the contrary, funds allocated under subsection (a) of this section are exempt from certificate of need review for the establishment or expansion of outpatient therapy services or substance use disorder treatment services, or both.
SECTION 11F.4.(d) Applicability of Licensure Laws. – The establishment or expansion of behavioral health services, including any of the items described in subsection (b) of this section, are subject to existing licensure laws and requirements.
SECTION 11F.4.(e) Reservation of Beds for State Use. – As a condition of receiving these funds, providers shall reserve at least fifty percent (50%) of the beds constructed or converted with funds allocated under subsection (a) of this section for individuals who are indigent or Medicaid recipients.
SECTION 11F.4.(f) Report on the Substance Abuse Residential Facility Grant Program. – Beginning November 1, 2019, the Department of Health and Human Services shall report to the Joint Legislative Oversight Committee on Health and Human Services, Office of State Budget and Management, and the Fiscal Research Division on grants awarded under subdivision (2) of subsection (a) of this section. The report shall include the following:
(1) The amount of grants awarded.
(2) The grant recipient and location.
(3) The total cost and description of the project receiving funds.
(4) The expected number of individuals to be treated by the program.
(5) The total number of applicants and the methodology used by the Department to award grants.
SECTION 11F.4.(g) Unspent Funds for 2018‑2019 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 this section for the 2018‑2019 fiscal year that are not expended or encumbered as of June 30, 2019, shall remain in the Dorothea Dix Hospital Property Fund.
ENSURE ENFORCEMENT OF TOBACCO LAWS/PREVENTION OF SALES TO YOUTH
SECTION 11F.5.(a) G.S. 143B‑928 is amended by adding a new subsection to read:
"(d) Primary responsibility to enforce tobacco laws is under the jurisdiction of the Alcohol Law Enforcement Branch to include underage tobacco enforcement."
SECTION 11F.5.(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 ABC, lottery, and tobacco laws."
SECTION 11F.5.(c) Of the funds appropriated to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of three hundred thousand dollars ($300,000) in recurring funds for the 2018‑2019 fiscal year shall be used to provide enforcement compliance checks, through the designated statewide entity with jurisdiction (Alcohol Law Enforcement).
SUBPART XI‑G. DIVISION OF HEALTH SERVICE REGULATION [reserved]
SUBPART XI‑H. DIVISION OF MEDICAL ASSISTANCE
MEDICAID EXPANSION
SECTION 11H.1. Section 11H.1(b) of S.L. 2017‑57 reads as rewritten:
"SECTION 11H.1.(b) For the following Medicaid eligibility classifications for which the federal poverty guidelines are used as income limits for eligibility determinations, the income limits will be updated each April 1 immediately following publication of federal poverty guidelines. The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to the following:
…
(6) All people who have incomes equal to or less than one hundred thirty‑eight percent (138%) of the federal poverty guidelines, effective January 1, 2019.
The Department of Health and Human Services, Division of Medical Assistance, shall also provide family planning services to men and women of childbearing age with family incomes equal to or less than one hundred ninety‑five percent (195%) of the federal poverty guidelines and without regard to resources."
ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE
SECTION 11H.2. 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-nine million six hundred thousand dollars ($149,600,000) one
hundred sixty‑three million three hundred thousand dollars ($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."
ALIGNING MEDICAID EXPEDITED APPEALS PROCESS WITH FEDERAL LAW
SECTION 11H.3. G.S. 108A‑70.9A reads as rewritten:
"§ 108A‑70.9A. Appeals by Medicaid recipients.
(a) Definitions. – The following definitions apply in this Part, unless the context clearly requires otherwise.
(1) Adverse determination. A determination by the Department to deny, terminate, suspend, or reduce a new or continuing Medicaid service or an authorization for a Medicaid service. A denial of an expedited appeal request under 42 C.F.R. § 431.22(b) is not an adverse determination.
…
(d) Appeals. – Except as
provided by this section and G.S. 108A‑70.9B, a request for a
hearing to appeal an adverse determination of the Department under this section
is a contested case subject to the provisions of Article 3 of Chapter 150B of
the General Statutes. The recipient shall request a hearing within 30 days of
the mailing of the notice required by subsection (c) of this section by sending
an appeal request form to OAH and the Department. Where a request for hearing
concerns the reduction, modification, or termination of Medicaid services,
including the failure to act upon a timely request for reauthorization with
reasonable promptness, upon the receipt of a timely appeal, the Department
shall reinstate the services to the level or manner prior to action by the
Department as permitted by federal law or regulation. The Department shall
immediately forward a copy of the notice to OAH electronically. The
information contained in the notice is confidential unless the recipient appeals.
OAH may dispose of the records after one year. The Department may not
influence, limit, or interfere with the recipient's decision to request a
hearing.
…
(e1) A recipient may request an expedited appeal under 42 C.F.R. § 413.224(b) by requesting an expedited appeal on the appeal request form described in subsection (e) of this section and by submitting the appeal request form with additional documentation, not duplicative of the original service request, in support of the request for an expedited appeal. For expedited appeal requests, the mediation procedure set forth in G.S. 108A‑70.9B(c) shall not be applicable unless the Department denies the request for an expedited hearing.
…."
PROTECTING MEDICAID CASH FLOWS BY ALIGNING COST SETTLEMENT RECOUPMENT PROCESS WITH FEDERAL LAW
SECTION 11H.4.(a) G.S. 108C‑2 is amended by adding a new subdivision to read:
"§ 108C‑2. Definitions.
The following definitions apply in this Chapter:
…
(12) Notice of Program Reimbursement. – The written notice reflecting the Department's final determination of the total amount of reimbursement, if any, due to either the provider or the Department following receipt of a provider's annual Medicaid or Health Choice cost report, or amended Medicaid or Health Choice cost report where permitted or required."
SECTION 11H.4.(b) Chapter 108C of the General Statutes is amended by adding a new section to read:
"§ 108C‑15. Notice of Program Reimbursement as basis for recoupment of overpayments.
Notwithstanding any other provisions of law, upon issuance of the Notice of Program Reimbursement, the Department shall take immediate action to recoup the amount of reimbursement owed by the provider to the Department. Recoupment shall be made notwithstanding any request by the provider for a reconsideration review by the Department or a contested case hearing under Chapter 150B of the General Statutes."
SUBPART XI‑I. DIVISION OF HEALTH BENEFITS
APPROPRIATION OF FEDERAL FUNDS FOR MEDICAID TRANSFORMATION
SECTION 11I.1. Section 11I.1 of S.L. 2017‑57 is repealed.
SUBPART XI‑J. MISCELLANEOUS [reserved]
SUBPART XI‑K. DIVISION OF VOCATIONAL REHABILITATION, SERVICES FOR THE BLIND, AND SERVICES FOR THE DEAF AND HARD OF HEARING [RESERVED]
SUBPART XI‑L. DHHS BLOCK GRANTS
DHHS BLOCK GRANTS
SECTION 11L.1. Section 11L.1 of S.L. 2017‑57 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 NEEDY FY 2017‑2018 FY 2018‑2019
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 9,412,39110,912,391
06. Child Welfare Program Improvement Plan 775,176 775,176
07. Child Welfare Collaborative 400,000 400,000
08. Child Welfare Initiatives 1,400,000 1,400,000
08A. Evidence‑Based Programs for Children
and Families in Support of School Safety
and Youth Mental Health Child Abuse and
Child Abuse and Neglect Prevention Services 0 10,200,000
Division of Child Development and Early Education
09. Subsidized Child Care
Program 53,605,680 58,112,73534,184,030
10. NC Pre‑K Services 6,000,000 12,200,00037,094,607
10A. Swap Child Care Subsidy 392,420 294,697
Division of Public Health
11. Teen Pregnancy Prevention Initiatives 2,950,000 2,950,000
11A. SHIFT NC 0 500,000
DHHS Administration
12. Division of Social Services 2,482,260 2,482,260
12A. Division of Social Services – WIOA 0 93,216
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 71,773,001
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
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 1,245,3632,163,605
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 737,067 737,067
11. Home and Community Care Block
Grant (HCCBG) 1,696,888 1,696,888
12. Child Advocacy Centers 582,000 582,000
13. Guardianship – Division of Social Services 815,362 815,362
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 4,524,525
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 577,745 577,745
22. Division of Social Services 634,680 634,680
22A. Division of Social Services – Adult
Protective Services 0 81,758
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$70,607,591
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$42,406,793
02. Crisis Intervention
Program (CIP) 36,402,610 35,419,27242,406,793
Local Administration
Division of Social Services
03. County DSS Administration 5,978,512 5,817,0146,964,596
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 10,426,57312,483,529
10. Heating Air Repair and Replacement
Program (HARRP) 5,701,752 5,547,7326,642,190
11. Local Residential Energy Efficiency Service
Providers – Weatherization 439,982 428,097512,552
12. Local Residential Energy Efficiency Service
Providers – HARRP 234,105 227,781272,718
13. DENR – Weatherization
Administration 439,982 428,097512,552
14. DENR – HARRP Administration 234,105 227,781272,718
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$252,669,029
02. Transfer from TANF Block Grant
for Child Care Subsidies 71,773,001 71,773,001
03. Quality and Availability Initiatives
(TEACH Program $3,800,000) 45,761,678 45,761,67860,046,756
DHHS Administration
Division of Child Development and Early Education
04. DCDEE Administrative
Expenses 9,042,159 8,929,3249,723,308
Division of Social Services
05. Local Subsidized Child Care
Services Support 16,436,361 16,436,36118,750,761
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 7,346500,000
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$417,941,400
MENTAL HEALTH SERVICES BLOCK GRANT
Local Program Expenditures
01. Mental Health Services –
Child $3,619,833 $3,619,833$4,884,116
02. Mental Health Services –
Adult/Child 10,967,792 10,967,79213,172,084
03. Crisis Solutions Initiative – Critical
Time Intervention 750,000 750,0000
04. Mental Health Services – First
Psychotic Symptom Treatment 1,430,851 1,430,8512,302,929
04A. Training to Increase School Safety 0 2,659,600
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 27,621,28630,285,676
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
07A. Crisis Solutions Initiatives – Veteran's Crisis 0 250,000
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 454,000 454,0001,200,426
10. Controlled Substance Reporting System
Enhancement 326,224 427,655
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 250,000 250,0000
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) $11,802,435 $11,802,435$12,232,974
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 2,200,000
DHHS Program Expenditures
04. Children's Health Services 1,427,323 1,427,3231,593,084
05. Women's Health – Maternal
Health 169,864 169,864229,574
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$18,745,529
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
03A. Office of Economic Opportunity –
Allocation of One‑Stop Center Infrastructure 0 60,000
TOTAL COMMUNITY SERVICES
BLOCK GRANT $26,874,602 $26,874,602$19,837,921
"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 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 changes. The report shall include an itemized listing of affected programs, including associated changes in budgeted allocations. All changes to the budgeted allocations to the Block Grants shall be reported immediately to the 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) for the 2017‑2018 fiscal year and
the sum of ten million nine hundred twelve thousand three hundred ninety‑one
($10,912,391) for the 2018‑2019 fiscal year 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.(j1) The sum of ten million two hundred thousand dollars ($10,200,000) appropriated in this section in TANF funds to the Department of Health and Human Services, Division of Social Services, for the 2018‑2019 fiscal year shall be used to implement and provide options for evidenced‑based home visiting programs, including, but not limited to, Child First, Family Connects, as well as, other early childhood mental health interventions to address child abuse and neglect prevention necessary to affect school safety and youth mental health. As a part of this continuum, TANF will be used to implement Community Response Programs in 100 counties over the course of the next three years. The Strengthening Families Framework is an intentional focus on family development and optimal child development that identifies five protective factors that are relevant for the continuum of child welfare services:
(1) Parental resilience.
(2) Social connections.
(3) Knowledge of parenting and child development.
(4) Concrete support in times of need.
(5) Children's social and emotional development.
The North Carolina Community Response Program will support cross‑agency collaborative, community‑based initiatives to provide outreach, support, and services to individuals and families identified as being at risk of compromised health and safety to eliminate or reduce those risks by promoting protective factors that strengthen and support families.
"SECTION 11L.1.(j2) The sum of five hundred thousand dollars ($500,000) appropriated in this section in TANF funds to the Department of Health and Human Services, Division of Public Health, for the 2018‑2019 fiscal year shall provide funding to SHIFT NC (statewide nonprofit in North Carolina working to improve adolescent and young adult health) to continue their efforts with eight continuing and up to three new local Departments of Social Services/LINKS programs to implement teen pregnancy prevention, evidence‑based curricula with youth in foster care. SHIFT NC has worked with DSS/LINKS using this model since 2015, with strong outcomes related to abstinence, pregnancy prevention, and increased connections to health care and social support. SHIFT NC will provide ongoing training and technical assistance to help local agencies use trauma‑informed, evidence‑based, and sustainable programming for teen pregnancy prevention with this vulnerable population of youth.
"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 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) 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 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%).
"SECTION 11L.1.(s1) The sum of eighty‑one thousand seven hundred fifty‑eight dollars ($81,758) appropriated in this section from the Social Services Block Grant to the Department of Health and Human Services, Divisions of Social Services and Aging and Adult Services, for the 2018‑2019 fiscal year shall be used to establish a State‑level position to support oversight and monitoring of expanded Adult Protective Services (APS) to local departments of Social Services. These Social Services Block Grant funds shall be used to pay for salary and related expenses only and 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‑two
million four hundred six thousand seven hundred ninety‑three dollars
($42,406,793) 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) for
the 2017‑2018 fiscal year and the sum of two million three hundred two
thousand nine hundred twenty‑nine dollars ($2,302,929) for the 2018‑2019
fiscal year 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 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.
"SECTION 11L.1.(x1) The sum of two million six hundred fifty‑nine thousand six hundred dollars ($2,659,600) 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, is allocated to support evidenced‑based training programs and initiatives for school personnel, mental health clinicians, and practitioners to improve school safety and youth mental health.
"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.
"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."
PART XII. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES [RESERVED]
PART XIII. DEPARTMENT OF ENVIRONMENTAL QUALITY
COMBUSTION RESIDUALS SURFACE IMPOUNDMENTS REGULATORY FEE
SECTION 13.1. G.S. 62‑302.1(b) reads as rewritten:
"(b) Rate. – The combustion residuals surface impoundment fee
shall be twenty-two thousandths of one percent (0.022%) three‑hundredths
of one percent (0.03%) of the North Carolina jurisdictional revenues of
each public utility with a coal combustion residuals surface impoundment. For
the purposes of this section, the term "North Carolina jurisdictional
revenues" has the same meaning as in G.S. 62‑302."
SHALLOW DRAFT NAVIGATION CHANNEL DREDGING AND AQUATIC WEED FUND
SECTION 13.2. G.S. 143‑215.73F(b)(2) reads as rewritten:
"(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."
ANNUAL MINE OPERATING FEE/DUE DATE CHANGE
SECTION 13.3. G.S. 74‑55 reads as rewritten:
"§ 74‑55. Reclamation report.
(a) By July 1 of each year, the operator shall file a report of activities completed during the preceding year on a form prescribed by the Department, which includes all of the following:
(1) Identify the mine, the operator and the permit number.
(2) State acreage disturbed by mining in the last 12‑month period.
(3) State and describe amount and type of reclamation carried out in the last 12‑month period.
(4) Estimate acreage to be newly disturbed by mining in the next 12‑month period.
(5) Provide such maps as may be specifically requested by the Department.
(6) Include the annual operating fee pursuant to G.S. 74‑54.1(a1).
(b) When filing the annual
report, the permittee shall pay the annual operating fee for the permit to the
Department by September 1 of each year until the permit has been
terminated by the Department. The Department may assess and collect a monthly
penalty for each annual report or annual operating fee not filed by July 31 September
30 of each year until the annual report and annual operating fee are filed
with the Department. If the required annual report and operating fee, including
any late payment penalties, are not filed by December 31 February 28 of
each year, the Department shall give written notice to the operator and shall
then initiate permit revocation proceedings in accordance with G.S. 74‑58."
SUBPART XIII‑A. WILDLIFE RESOURCES COMMISSION [RESERVED]
PART XIV. DEPARTMENT OF NATURAL AND CULTURAL RESOURCES
ESTABLISH STATE PARKS FUNDS AS A SPECIAL REVENUE FUND
SECTION 14.1. Article 2 of Chapter 143B of the General Statutes is amended by adding a new section to read:
"§ 143B‑135.204. Establish State Parks Fund as a special revenue fund.
(a) Fund. – The State Parks Fund is hereby created as a special revenue fund. The State Parks Fund shall be used for the following types of projects with respect to the State Parks System:
(1) Repair, renovation, maintenance, and educational exhibit construction. Funds used for repair, renovation, and expansion projects may be transferred to a capital projects fund to account for use of the funds for each project.
(2) Preservation, development, and expansion of an individual park, State recreational area, State natural area, State lake, State river, or State trail.
(3) The acquisition, maintenance, or replacement of vehicles and other transportation equipment as required to maintain adequate service to the public.
(4) Matching of private funds that are raised for these purposes.
(5) Marketing of the State parks.
(b) Disposition of Receipts. – All receipts derived from the lease or rental of property or facilities; disposition of structures or products of the land; private donations; and camping, activity, and service fees collected shall be credited to the Division of Parks and Recreation's General Fund operating budget. At the end of each fiscal year, the Secretary may transfer from the Division of Parks and Recreation's General Fund operating budget to the State Parks Fund an amount not to exceed the sum of two million dollars ($2,000,000) and any donations, gifts, grants, and devises received by the Division of Parks and Recreation.
(c) Approval. – The Secretary may approve the use of the State Parks Fund for repair and renovation projects at the Division of Parks and Recreation that comply with the following:
(1) The total project cost is less than five hundred thousand dollars ($500,000).
(2) The project meets the requirements of G.S. 143C‑4‑3(b).
(d) Report. – The Department shall submit to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division by September 30 of each year a report on the State Parks Fund that shall include the source and amounts of all funds credited to the Fund and the purpose and amounts of all expenditures from the Fund during the prior fiscal year."
ADD DNCR TO CRIMINAL JUSTICE TRAINING AND STANDARDS ACT
SECTION 14.2. G.S. 143‑166.13(a) is amended by adding a new subdivision to read:
"(a) The following persons who are subject to the Criminal Justice Training and Standards Act are entitled to benefits under this Article:
…
(21) Sworn State Law-Enforcement Officers with the power of arrest, Department of Natural and Cultural Resources."
ADD MARKETING PROJECTS TO THE NORTH CAROLINA ZOO FUND
SECTION 14.3. G.S. 143B‑135.209(a) is amended by adding a new subdivision to read:
"(a) Fund. – The North Carolina Zoo Fund is created as a special fund. The North Carolina Zoo Fund shall be used for the following types of projects at the North Carolina Zoological Park and to match private funds raised for these types of projects:
(1) Repair, renovation, expansion, maintenance, and educational exhibit construction.
(2) Renovations of exhibits in habitat clusters, visitor services facilities, and support facilities (including greenhouses and temporary animal holding areas).
(3) The acquisition, maintenance, or replacement of tram equipment as required to maintain adequate service to the public.
(4) Marketing the zoo."
CLARIFY AND EXTEND HISTORIC PRESERVATION TAX CREDIT
SECTION 14.4.(a) G.S. 105‑129.106(b) reads as rewritten:
"(b) Limitations. – The
amount of credit allowed under this section with respect to rehabilitation expenses for a non‑income‑producing certified
historic structure may not exceed twenty‑two thousand
five hundred dollars
($22,500) per discrete property parcel.
In the event that the taxpayer
is the transferee of a State‑certified historic
structure for which rehabilitation
expenses were made, the taxpayer as transferee is allowed a credit under this
section for the rehabilitation expenses made by the transferor only if the
transfer takes place before the structure is placed in service. In this event,
the transferor must provide the transferee with documentation detailing the
amount of rehabilitation expenses and credit. No other taxpayer may claim such
credit. A taxpayer is allowed to may claim a credit per discrete property parcel under
this section no more than once in any five‑year period, carryovers notwithstanding."
SECTION 14.4.(b) G.S. 105‑129.110 reads as rewritten:
"§ 105‑129.110. Sunset.
This Article expires for qualified rehabilitation expenditures and
rehabilitation expenses incurred on
or after January 1, 2020.2030."
NATURAL HERITAGE PROGRAM ADMINISTRATION AND FUND CORRECTION
SECTION 14.5.(a) Part 42 of Article 2 of Chapter 143B of the General Statutes is amended by adding a new section to read:
"§ 143B‑135.372. Administration of the Conservation Tax Credit Program.
All authority, power, and responsibility related to Conservation Tax Credits, the Conservation Tax Credit Program, and properties for which tax credits were granted for tax years beginning before January 1, 2014, previously given to the Department of Environmental Quality or its predecessors under G.S. 105‑130.34 and G.S. 105‑151.12, prior to the adoption of S.L. 2013‑316, and G.S. 113A‑231, and prior to the adoption of S.L. 2014‑3, are given to the Department of Natural and Cultural Resources which may exercise the same through the Natural Heritage Program."
SECTION 14.5.(b) G.S. 143B‑135.272(b) reads as rewritten:
"(b) Fees collected
under this section
are receipts of the Department of Natural and Cultural Resources and shall be
deposited in the Clean Water Management Trust Fund a special fund for
the purpose of supporting the operations of the Natural Heritage Program."
NATURAL HERITAGE PROGRAM REDUCE OR WAIVE FEES FLEXIBILITY
SECTION 14.6. G.S. 143B‑135.272 reads as rewritten:
"§ 143B‑135.272. Access to information; fees.
(a) The Secretary may establish fees to defray the costs associated with any of the following:
(1) Responding to inquiries
requiring customized environmental review services
or the costs associated with developing, improving, or maintaining
technology that supports an online interface for external users to access Natural Heritage Program data.
The Secretary may reduce or waive the fee
established under this subsection if the Secretary determines that a waiver of reduction of the fee is in the public interest.
…
(c) The Secretary may reduce or waive fees established under this section if the Secretary determines that a reduction or waiver of the fees is in the public interest or serves the purposes declared in the Nature Preserves Act, Part 42 of Article 2 of Chapter 143B of the General Statutes."
PART XV. DEPARTMENT OF COMMERCE
INCREASE AWARDS CAP FOR ONE NORTH CAROLINA FUND
SECTION 15.1. G.S. 143B‑437.71(b1) reads as rewritten:
"(b1) Awards. – The amounts
committed in Governor's Letters issued in a single fiscal biennium may not
exceed twenty-eight million dollars ($28,000,000).forty‑four
million dollars ($44,000,000)."
COMMUNITY INNOVATION FUND
SECTION 15.2.(a) Fund. – The North Carolina Community Innovation Fund (CIF) is established as a special revenue fund in the Department of Commerce (Department). The Office of Science, Technology & Innovation within the Department shall be responsible for administering the program.
SECTION 15.2.(b) Purposes. – Moneys in the CIF shall be allocated pursuant to this subsection. The Department shall make grants from the CIF to "micropolitan" communities and majority‑minority communities within metro areas that have seen systemic under investment across North Carolina to stimulate small business growth, foster vibrant local innovation ecosystems, and help small‑ to medium‑sized communities across the State transition to a knowledge‑based economy. A "micropolitan community" is one or more adjacent counties or county equivalents that have at least one urban core area of at least 10,000 population but less than 50,000, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties. An "innovation ecosystem" is defined as a collection of people, organizations, cultures, policies, and programs that creates innovative ideas and discoveries and translates those ideas into innovative products, services, and business models to improve economic well‑being and quality of life. Moneys in the CIF shall be used for projects that will target, but not be limited to, the following outcomes:
(1) Strengthening internal networks among local entrepreneurs and the broader business community, as well as the connection between the local micropolitan innovation ecosystem and proximate metro innovation ecosystems.
(2) Attracting more capital investment into the local innovation ecosystem.
(3) Growing the number of locally owned small businesses in the community.
(4) Increasing employment opportunities within the knowledge‑based economy.
(5) Fostering more enterprises led and owned by women and entrepreneurs of color.
(6) Contributing to increased business activity and density in underdeveloped commercial corridors.
(7) Increasing media visibility for these efforts locally, statewide, and, ultimately, nationally.
SECTION 15.2.(c) Cap and Matching Funds. – The Department may require a participating community to provide matching funds for a grant from the CIF.
SECTION 15.2.(d) Administrative Expenses. – Of the funds appropriated to the CIF, the Department may use up to sixty thousand dollars ($60,000), if necessary, to cover the Department's expenses in administering the CIF.
SECTION 15.2.(e) CIF Advisory Committee. – The Department may establish an advisory committee to assist in the development of the specific selection criteria and the grant‑making process of the CIF.
SECTION 15.2.(f) Agreements Required. – Funds may be disbursed from the CIF only in accordance with agreements entered into between the Department and an eligible grantee. Eligible grantees are nonprofit organizations, councils of government, and local governments.
SECTION 15.2.(g) Program Guidelines. – The Department shall develop guidelines related to the administration of this program. At least 20 days before the effective date of any guidelines or nontechnical amendments to the guidelines, the Department shall publish the proposed guidelines on the Department's Web site and provide notice to persons who have requested notice of proposed guidelines. In addition, the Department must accept oral and written comments on the proposed guidelines during the 15 business days beginning on the first day that the Department has completed these notifications. Guidelines adopted under this section shall not be subject to the requirements of Article 2A of Chapter 150B of the General Statutes.
RENAME ONE NORTH CAROLINA SMALL BUSINESS FUND
SECTION 15.3.(a) G.S. 143B‑437.71 reads as rewritten:
"§ 143B‑437.71. One North Carolina Fund established as a special revenue fund.
…
(b) Purposes. – Moneys in
the One North Carolina Fund may only be allocated pursuant to this subsection.
Moneys may be allocated to local governments for use in connection with
securing commitments for the recruitment, expansion, or retention of new and
existing businesses and to the One North Carolina Small Business Account Small
Business Technology Commercialization Program created pursuant to
subsection (c) of this section in an amount not to exceed three million dollars
($3,000,000). Moneys in the One North Carolina Fund allocated to local
governments shall be used for the following purposes only:
(1) Installation or purchase of equipment.
(2) Structural repairs, improvements, or renovations to existing buildings to be used for expansion.
(3) Construction of or improvements to new or existing water, sewer, gas, or electric utility distribution lines or equipment for existing buildings.
(4) Construction of or improvements to new or existing water, sewer, gas, or electric utility distribution lines or equipment for new or proposed buildings to be used for manufacturing and industrial operations.
(5) Any other purposes specifically provided by an act of the General Assembly.
…
(c) There is created in the
One North Carolina Fund a special account, the One North Carolina Small
Business Account, Small Business Technology Commercialization Program, to
be used for the North Carolina SBIR/STTR Incentive Program and the North
Carolina SBIR/STTR Matching Funds Program, as specified in Part 2I of Article
10 of Chapter 143B of the General Statutes."
SECTION 15.3.(b) G.S. 143B‑437.80(a) reads as rewritten:
"(a) Program. – There is
established the North Carolina SBIR/STTR Incentive Program to be administered
by the North Carolina Board of Science, Technology, and Innovation. In order to
foster job creation and economic development in the State, the Board may
provide grants to eligible businesses to offset costs associated with applying
to the United States Small Business Administration for Small Business
Innovative Research (SBIR) grants or Small Business Technology Transfer
Research (STTR) grants. The grants shall be paid from the One North Carolina
Small Business Account Small Business Technology Commercialization
Program established in G.S. 143B‑437.71."
NC JOB READY FUND
SECTION 15.4.(a) Article 2 of Chapter 96 of the General Statutes is amended by adding a new section to read:
"§ 96‑6.3. NC Job Ready Fund.
(a) NC Job Ready Fund. – There is established in the Department of Commerce an NC Job Ready Fund for the purposes of providing job training, employment‑related services, and economic development services to North Carolina job seekers and employers in order to address workforce skills gaps. The Fund consists of the revenues derived from the Unemployment Insurance Reserve Fund Surtax imposed under G.S. 96‑9.7.
(b) Allocation of Funds. – The Department of Commerce shall allocate monies in the fund on the following basis:
(1) Thirty million dollars ($30,000,000) shall be allocated to the North Carolina Getting Ready for Opportunities in the Workforce (NC GROW) scholarship program in The North Carolina Community College System.
(2) Ten million dollars ($10,000,000) shall be allocated to the Finish Line Grants program in The University of North Carolina System.
(3) Five million dollars ($5,000,000) shall be allocated to the Finish Line Grants program in The North Carolina Community College System.
(4) Five million dollars ($5,000,000) shall be allocated to the Finish Line Grants program administered by the North Carolina Independent Colleges and Universities.
(5) Ten million dollars ($10,000,000) shall be allocated to the Employer Training Fund in the North Carolina Department of Commerce, Division of Workforce Solutions.
In the event revenues from the surtax imposed under G.S. 96‑9.7 are insufficient to support this allocation or are in excess of these amounts, the Secretary of the Department of Commerce may allocate funds to the programs listed in this subsection on a pro rata basis."
SECTION 15.4.(b) G.S. 96‑9.2(c) reads as rewritten:
"(c) Contribution Rate for Experience‑Rated Employer. – The contribution rate for an experience‑rated employer who does not qualify as a beginning employer under subsection (b) of this section is determined in accordance with the table set out below and then rounded to the nearest one‑hundredth percent (0.01%), subject to the minimum and maximum contribution rates. The minimum contribution rate is six‑hundredths of one percent (0.06%). The maximum contribution rate is five and seventy‑six hundredths percent (5.76%). "Total insured wages" are the total wages reported by all insured employers for the 12‑month period ending on June 30 preceding the computation date. The calculations in the table set out below are applied as of September 1 following the computation date. An employer's experience rating is computed as a reserve ratio in accordance with G.S. 96‑9.4. An employer's reserve ratio percentage (ERRP) is the employer's reserve ratio multiplied by sixty‑eight hundredths. A positive ERRP produces a lower contribution rate, and a negative ERRP produces a higher contribution rate.
UI Trust Fund Balance
as Percentage of Total Contribution Rate
Insured Wages
Less than or equal to 1% 2.9% minus ERRP
Greater than 1% but less
than or equal to 1.25% 2.4% minus ERRP
Greater than 1.25% 1.9%1.4%
minus ERRP"
SECTION 15.4.(c) G.S. 96‑9.7 reads as rewritten:
"§ 96‑9.7. Surtax for the Unemployment Insurance Reserve Fund.
(a) Surtax Imposed. – A surtax is imposed on an
employer who is required to make a contribution to the Unemployment Insurance
Fund equal to twenty percent (20%) of the contribution due under G.S. 96‑9.2.
Except as provided in this section, the surtax is collected and administered
in the same manner as contributions. Surtaxes collected under this section
must be credited to the Unemployment Insurance Reserve Fund established
under G.S. 96-6.2. NC Job Ready Fund established under G.S. 96‑6.3.
Interest and penalties collected on unpaid surtaxes imposed by this section
must be credited to the Supplemental Employment Security Administration Fund.
Penalties collected on unpaid surtaxes imposed by this section must be
transferred to the Civil Penalty and Forfeiture Fund established in
G.S. 115C‑457.1. Of the revenues derived from the surtax, the Department
of Commerce may retain funds equal to the administrative costs associated with
collection.
(b) Suspension of Tax. –The tax does not apply in a
calendar year if, as of the preceding August 1 computation date, the amount in
the State's account in the Unemployment Trust Fund equals or exceeds one
billion dollars ($1,000,000,000)."
SECTION 15.4.(d) Subsection (b) of this section becomes effective August 1, 2018. Subsections (a) and (c) of this section become effective July 1, 2018.
EMPLOYER TRAINING FUND
SECTION 15.5. Article 2 of Chapter 96 of the General Statutes is amended by adding a new section to read:
"§ 96‑6.4. Employer Training Fund.
(a) The Employer Training Fund is established as a special revenue fund in the Department of Commerce, Division of Workforce Solutions, for the purposes of supporting collaboration with and assistance to employers in addressing workforce training needs and employee skill gaps. The Fund consists of allocations from the NC Job Ready Fund as directed in G.S. 93‑6.3. The Department of Commerce, Division of Workforce Solutions, may award grants or contract with organizations to support a variety of work‑based learning initiatives, including, but not limited to, the establishment or expansion of registered Apprenticeship programs, training for incumbent workers, and paid employment opportunities for students. Grants may include, but are not limited to, carrying out the following:
(1) Upskilling existing entry‑ to mid‑level employees through additional training while creating newly open positions that may be backfilled with entry‑level hires.
(2) Increasing opportunities for flexible, paid internship and employment opportunities for high school and postsecondary students.
(3) Establishing or expanding registered Apprenticeship programs.
(b) The Department of Commerce, Division of Workforce Solutions, shall collaborate with the North Carolina Community College System, Workforce Development Boards, employers, and other appropriate entities to design and implement the Employer Training Fund. The Department of Commerce shall issue a Request for Proposal (RFP) for the Employer Training Fund. The RFP shall require that proposals include the following information, at a minimum:
(1) Description of how funds will be used to carry out the proposed activities, including the number of people served.
(2) Documentation of expenses where proposals request reimbursement of costs to carry out the proposed activities.
(3) Plans for financial sustainability once grant funds have been expended.
(c) By November 1, 2019, and annually thereafter, the Department of Commerce shall submit a report to the Governor, the Office of State Budget and Management, the Joint Legislative Oversight Committee on Agriculture and Natural, and Economic Resources, and the Fiscal Research Division on the use and outcomes of the Employer Training Fund."
SUBPART XV‑A. COMMERCE – STATE AID [RESERVED]
SUBPART XV‑B. DEPARTMENT OF LABOR
CERTAIN FEES SHALL NOT REVERT
SECTION 15B.1. G.S. 95‑108 reads as rewritten:
"§ 95‑108. Disposition of fees.
All fees collected by the Department of Labor pursuant to G.S. 95‑69.11, 95‑110.5, 95‑111.4 and 95‑120 shall be deposited with the State Treasurer and shall be used exclusively for inspection and certification purposes. All fees collected pursuant to this section that have not yet been expended or encumbered at the end of each fiscal year shall not revert but shall remain available for expenditure in the subsequent fiscal year."
PART XVI. DEPARTMENT OF PUBLIC SAFETY
SUBPART XVI‑A. GENERAL PROVISIONS
DEPARTMENT OF PUBLIC SAFETY BUDGET FLEXIBILITY
SECTION 16A.1. Notwithstanding G.S. 143C‑6‑4, for the fiscal year 2018‑2019, the Department of Public Safety, with the approval of the Director of the Budget, may adjust the authorized budget to realign line items across purposes and programs of the Department to fund nonrecurring expenses associated with projects designed to enhance the safety and security of their employees and the prison and juvenile facilities to which they are assigned.
SUBPART XVI‑B. DIVISION OF LAW ENFORCEMENT [RESERVED]
SUBPART XVI‑C. DIVISION OF ADULT CORRECTION
EXTEND REENTRY COUNCIL CONTRACTS
SECTION 16C.1. Section 16C.11D of S.L. 2017‑57 reads as rewritten:
"SECTION 16C.11D. For
the 2017-2018 fiscal year, 2017‑2019 fiscal 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."
SUBPART XVI‑D. DIVISION OF JUVENILE JUSTICE [RESERVED]
SUBPART XVI‑E. EMERGENCY MANAGEMENT AND NATIONAL GUARD
CREATE HAZARDOUS MATERIALS FACILITY FUND
SECTION 16E.1. G.S. 166A‑29.1 reads as rewritten:
"§ 166A‑29.1. Hazardous materials facility fee.
…
(b) Annual Fee Shall Be Charged. – A person or business required under Section 302 or 312 of EPCRA to submit a notification or an annual inventory form to the Division shall be required to pay to the Department an annual fee in the amount set forth in subsection (c) of this section.
(b1) The Hazardous Materials Facility Fund is established as a special fund within the Department. All fees collected under this section shall be credited to the fund and shall be used to support the hazardous materials response programs established pursuant to subsection (f) of this section.
…
(f) Use of Fee Proceeds. – The proceeds of fees assessed pursuant to this section shall be used for the following:
(1) To offset costs associated with the establishment and maintenance of a hazardous materials database and a hazardous materials response application.
(2) To offset costs associated with the operations of the regional response program for hazardous materials emergencies and terrorist incidents.
(3) To provide grants to counties for hazardous materials emergency response planning, training, equipment, and related exercises.
(4) To offset Division costs that directly support hazardous materials emergency preparedness and response."
RADIOLOGICAL EMERGENCY PLANNING
SECTION 16E.2. G.S. 166A‑29 reads as rewritten:
"§ 166A‑29. Emergency planning; charge.
(a) Every person, firm,
corporation or municipality who is licensed to construct or who is operating a
fixed nuclear facility for the production of electricity shall pay to the
Department of Public Safety an annual fee of at least thirty thousand dollars
($30,000) for each fixed nuclear facility which is located within this State or
has a Plume Exposure Pathway Emergency Planning Zone of which any part is
located within this State. This fee is to be applied to the costs of planning
and implementing emergency response activities as are required by the Federal
Emergency Management Agency for the operation of nuclear facilities. Said fee
is to be paid no later than July 31 of each year.on a schedule set by
the Department of Public Safety. This minimum fee may be increased from
time to time as the costs of such planning and implementation increase. Such
increases shall be by agreement between the State and the licensees or
operators of the fixed nuclear facilities.
(b) Every person, firm,
corporation or municipality who is licensed to construct or who is operating a
fixed nuclear facility for the production of electricity shall pay to the
Department of Public Safety, for the use of the Radiation Protection Section of
the Division of Public Health Health Service Regulation of the
Department of Health and Human Services, an annual fee of at least thirty‑six
thousand dollars ($36,000) for each fixed nuclear facility that is located
within this State or that has a Plume Exposure Pathway Emergency Planning Zone
any part of which is located within this State. This fee shall be applied only
to the costs of planning and implementing emergency response activities as
required by the Federal Emergency Management Agency for the operation of
nuclear facilities. This fee is to be paid no later than July 31 of each
year.on a schedule set by the Department of Public Safety.
(c) The fees imposed by this section do not revert at the end of a fiscal year. The amount of fees carried forward from one fiscal year to the next shall be taken into consideration in determining the fee to be assessed each fixed nuclear facility under subsection (a) in that fiscal year."
PART XVII. DEPARTMENT OF JUSTICE
SEXUAL ASSAULT EVIDENCE COLLECTION KIT TRACKING AND ACCOUNTABILITY
SECTION 17.1.(a) Article 9 of Chapter 114 of the General Statutes is amended by adding a new section to read:
"§ 114‑65. Statewide Sexual Assault Evidence Collection Kit Tracking System and Annual Report.
(a) Establishment. – There shall be established a Statewide Sexual Assault Evidence Collection Kit Tracking System, hereinafter referred to as the System. All sexual assault evidence collection kits purchased or distributed under G.S. 143B‑2101 on or after October 1, 2018, shall be trackable and shall comply with the requirements of the System. The Director of the State Crime Laboratory (Director) shall implement protocols and administer the System and the Secretary of the Department of Public Safety (Secretary) shall adopt rules and guidelines for agencies required to participate in the System under this section. The Director shall ensure that the System protects victim information against disclosure to nonparticipating agencies. Except as otherwise required for reporting under subsection (e) of this section, information maintained in the System is confidential and not a public record as defined in G.S. 132‑1.
(b) Required Participation. – All medical providers, law enforcement agencies, forensic laboratories, or other persons or entities having custody or use of any sexual assault evidence collection kit in the State shall participate in the System and comply with the established protocols, rules, and guidelines. A participating entity shall be permitted to access the entity's tracking information through the System.
(c) Victim's Access to View Status of Kit. – It is the policy of the State to ensure that victims of sexual assault or attempted sexual assault is able to track the location of the sexual assault evidence collection kit used to conduct the victim's forensic medical examination and that the victim is also able to determine whether forensic testing of the kit has been completed.
(d) Tracking of Previously Untested Kits. – The Director shall implement protocols and the Secretary shall adopt rules and guidelines to ensure that previously untested sexual assault evidence collection kits are trackable and are entered into the System. Any law enforcement agency, medical provider, or forensic laboratory that has in its custody a previously untested sexual assault evidence collection kit used for a forensic medical examination shall comply with the established protocols, rules, and guidelines with respect to all untested kits.
For purposes of this subsection, a "previously untested sexual assault evidence collection kit" means any kit that has not undergone forensic testing and was identified and included in the 2017 statewide inventory of kits in law enforcement custody pursuant to Section 17.7 of S.L. 2017‑57. To the extent practicable, and consistent with protecting victim confidentiality for unreported sexual assaults, a law enforcement agency having custody of a kit governed by this subsection shall take reasonable measures to provide appropriate tracking information to the affected victim.
(e) Annual Report to the General Assembly. – Beginning on December 1, 2019, and yearly thereafter, the State Crime Laboratory shall report to the Joint Legislative Oversight Committee on Justice and Public Safety the following information for the previous fiscal year:
(1) The number of tracking‑enabled kits which have been shipped to medical facilities/providers.
(2) The number of tracking‑enabled kits which have been used by medical facilities/providers to conduct forensic medical examinations of sexual assault victims.
(3) Of the tracking‑enabled kits used by medical facilities or medical providers to conduct forensic medical examinations, the number of kits for which a sexual assault has been reported to law enforcement, sorted by law enforcement agency.
(4) Of the tracking‑enabled kits generated for reported cases, the number of kits which have been submitted to a laboratory for forensic testing.
(5) Of the tracking‑enabled kits submitted for forensic testing, the number of kits for which forensic testing has been completed.
(6) The number of tracking‑enabled kits for which a sexual assault has not been reported, including the total submitted to local law enforcement and the total submitted to Department of Public Safety, Law Enforcement Support Services.
(7) Information regarding efforts to track and test previously untested kits described in subsection (d) of this section."
SECTION 17.1.(b) G.S. 143B‑1201 reads as rewritten:
"§ 143B‑1201. Restitution; actions.
(a) The Program shall be an eligible recipient for restitution or reparation under G.S. 15A‑1021, 15A‑1343, 148‑33.1, 148‑33.2, 148‑57.1, and any other applicable statutes.
(b) When any victim who:
(1) Has received assistance under this Part;
(2) Brings an action for damages arising out of the rape, attempted rape, sexual offense, or attempted sexual offense for which she received that assistance; and
(3) Recovers damages including the expenses for which she was awarded assistance, the court shall make as part of its judgment an order for reimbursement to the Program of the amount of any assistance awarded less reasonable expenses allocated by the court to that recovery.
(c) Funds appropriated to
the Department of Public Safety for this program may be used to purchase and
distribute sexual assault evidence collection kits approved by the State
Bureau of Investigation.Director of the State Crime Laboratory.
(d) The Secretary, in consultation with the State Crime Laboratory, shall require that all program kits produced for use on or after October 1, 2018, are compatible with the Statewide Sexual Assault Evidence Collection Kit Tracking System, as administered by the State Crime Laboratory under G.S. 114‑65."
SECTION 17.1.(c) The North Carolina Forensic Science Advisory Board shall convene a working group to make recommendations regarding the testing priority of untested sexual assault kits identified in the 2017 Sexual Assault Evidence Collection Kit Law Enforcement Report made pursuant to Section 17.7 of S.L. 2017‑57. The working group shall include representatives from law enforcement, victims' advocates such as the North Carolina Victim Assistance Network (NCVAN) and the North Carolina Coalition Against Sexual Assault (NCCASA), RTI International, the North Carolina Department of Justice, prosecutors, and criminal defense attorneys. The working group shall develop findings and recommendations, including a strategic plan, that identifies which untested sexual assault evidence collection kits can be tested, the priority order for testing the kits, and a statewide protocol for testing future sexual assault evidence collection kits. The Secretary shall submit the findings and recommendations of the working group to the Joint Legislative Oversight Committee on Justice and Public Safety by December 1, 2018.
REPEAL ATTORNEY GENERAL'S OFFICE MANAGEMENT FLEXIBILITY REDUCTION
SECTION 17.2. Section 17.5 of S.L. 2017‑57 is repealed.
PART XVIII. JUDICIAL DEPARTMENT [RESERVED]
SUBPART XVIII‑A. OFFICE OF INDIGENT DEFENSE SERVICES [RESERVED]
SUBPART XVIII‑B. ADMINISTRATIVE OFFICE OF THE COURTS [RESERVED]
PART XIX. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS [RESERVED]
PART XX. OFFICE OF ADMINISTRATIVE HEARINGS [RESERVED]
PART XXI. TREASURER [RESERVED]
PART XXII. DEPARTMENT OF INSURANCE
SECTION 22.1. 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. STATE BOARD OF ELECTIONS [RESERVED]
PART XXIV. GENERAL ASSEMBLY[RESERVED]
PART XXV. OFFICE OF GOVERNOR [RESERVED]
PART XXVI. OFFICE OF STATE BUDGET AND MANAGEMENT [RESERVED]
PART XXVII. STATE AUDITOR [RESERVED]
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
LICENSE TO GIVE TRUST FUND COMMISSION
SECTION 31.1.(a) G.S. 20‑7.5(a) reads as rewritten:
"(a) There is established the License to Give Trust
Fund Commission. The Commission shall be located in the Department of Administration
for budgetary and administrative purposes only. Administration. The
Commission may allocate funds from the License to Give Trust Fund for the
purposes authorized in G.S. 20‑7.4. The Commission shall have 15
members, appointed as follows:
(1) Four members by the General Assembly, upon the recommendation of the President Pro Tempore of the Senate:
a. One representative of Carolina Donor Services.
b. One representative of LifeShare of The Carolinas.
c. Two members who have demonstrated an interest in organ and tissue donation and education.
(2) Four members by the General Assembly, upon the recommendation of the Speaker of the House of Representatives:
a. One representative of The North Carolina Eye Bank, Inc.
b. One representative of The Carolinas Center for Hospice and End‑of‑Life Care.
c. Two members who have demonstrated an interest in promoting advance care planning education.
(3) Seven members by the Governor:
a. Three members representing organ, tissue, and eye recipients, families of recipients, or families of donors. Of these three, one each from the mountain, heartland, and coastal regions of the State.
b. One member who is a transplant physician licensed to practice medicine in this State.
c. One member who has demonstrated an interest in organ and tissue donation and education.
d. One member who has demonstrated an interest in promoting advance care planning education.
e. A representative of the North Carolina Department of Transportation."
SECTION 31.1.(b) G.S. 20‑7.6 reads as rewritten:
"§ 20‑7.6. Powers and duties of the License to Give Trust Fund Commission.
The License to Give Trust Fund Commission has the following powers and duties:
(1) Establish general policies and guidelines for awarding grants‑in‑aid to nonprofit entities to conduct education and awareness activities on organ and tissue donation and advance care planning.
(2) Accept gifts or grants from other sources to further the purposes of the License to Give Trust Fund. Such gifts or grants shall be transmitted to the State Treasurer for credit to the Fund.
(3) Hire staff or contract for other expertise for
the administration of the Fund. Expenses related to staffing shall be paid from
the License to Give Trust Fund."
SIMPLIFYING PROCUREMENT THROUGH COMMON SENSE GOVERNMENT
SECTION 31.2.(a) G.S. 116‑31.10 reads as rewritten:
"§ 116‑31.10. Powers of Board regarding certain purchasing contracts.
(a) Notwithstanding G.S. 143‑53.1 or
G.S. 143‑53(a)(2), the expenditure benchmark for the President of
The University of North Carolina or special responsibility constituent
institution with regard to competitive bid procedures and the bid value
benchmark shall be an amount not greater than five hundred thousand dollars
($500,000). one million dollars ($1,000,000). The Board shall set
the benchmark for the President and each institution from time to time.
In setting the President's or an institution's benchmark in accordance
with this section, the Board shall consider the President's administrative
staff's or institution's overall capabilities including staff resources,
purchasing compliance reviews, and audit reports. The Board shall also consult
with the Director of the Division of Purchase and Contract and the Director of
the Budget prior to setting the benchmark.
(b) Each institution with an expenditure benchmark
greater than two hundred fifty thousand dollars ($250,000) shall comply with
this subsection for any purchase greater than the institution's benchmark set
by the Board but not greater than five hundred thousand dollars ($500,000). This
institution shall submit to the Division of Purchase and Contract for that
Division's approval or other action deemed necessary by the Division a copy of
all offers received and the institution's recommendation of award or other
action. Notice of the Division's decision shall be sent to that institution.
The institution shall then proceed with the award of contract or other action
recommended by the Division."
SECTION 31.2.(b) G.S. 115D‑58.14(c) reads as rewritten:
"(c) The State Board of
Community Colleges, in consultation with the Department of Administration,
shall review the purchasing process for community colleges and may increase or
decrease the purchasing/delegation benchmark for each community college based
on the college's overall capabilities, including staff resources, purchasing
compliance reviews, and audit reports. The State Board may, in its discretion,
reduce a community college's purchasing/delegation benchmark at anytime. The
State Board shall not increase a community college's purchasing/delegation
benchmark by more than fifteen percent (15%) in any calendar year without the
concurrence of the Department of Administration within 60 days of submission.
The maximum purchasing/delegation benchmark for a community college shall be one
hundred thousand dollars ($100,000).two hundred thousand dollars
($200,000)."
SECTION 31.2.(c) 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 The University of North Carolina School of
Government System to develop a rigorous contract management procurement
training and certification program for State employees. State agencies
that are subject to the requirements of this Article shall be required to
complete periodic training and education as prescribed by the Division of
Purchase and Contract. The program shall be administered by the Office
of State Human Resources.Division of Purchase and Contract.
…."
SECTION 31.2.(d) G.S. 143‑53(a) reads as rewritten:
"(a) The Secretary of Administration may adopt rules governing the following:
(1) Prescribing the routine
and procedures to be followed in canvassing bids and awarding contracts, and
for reviewing decisions made pursuant thereto, and the decision of the
reviewing body shall be the final administrative review. The Division of
Purchase and Contract shall review and decide a protest on a contract valued at
twenty-five thousand dollars ($25,000) or more. above the State agency's
delegation or benchmark level. The Secretary shall adopt rules or criteria
governing the review of and decision on a protest on a contract of less than twenty-five
thousand dollars ($25,000) by the State agency's delegation or benchmark level for the agency that awarded the contract.
…
(5) Prescribing conditions
under which purchases and contracts for the purchase, installment or lease‑purchase,
rental or lease of goods and services may be entered into by means other than
competitive bidding, including, but not limited to, negotiation, reverse
auctions, and acceptance of electronic bids. Notwithstanding the provisions of
subsections (a) and (b) of this section, any waiver of competition for the
purchase, rental, or lease of goods and services is subject to prior review by
the Secretary, if the expenditure exceeds ten thousand dollars ($10,000).an
agency's delegation or benchmark level. The Division may levy a fee, not to exceed one dollar ($1.00), for
review of each waiver application.
…."
SECTION 31.2.(e) G.S. 143‑57 reads as rewritten:
"§ 143‑57. Purchases of articles in certain emergencies.
In case of any emergency or
pressing need arising from unforeseen causes including but not limited to delay
by contractors, delay in transportation, breakdown in machinery, or
unanticipated volume of work, the Secretary of Administration shall have power
to obtain or authorize obtaining in the open market any necessary supplies,
materials, equipment, printing or services for immediate delivery to any
department, institution or agency of the State government. A report on the
circumstances of such emergency or need and the transactions thereunder shall
be made a matter of record promptly thereafter. If the expenditure exceeds ten
thousand dollars ($10,000), the agency delegation or benchmark, the
report shall also be made promptly thereafter to the Division of Purchase and
Contract."
PART XXXII. DEPARTMENT OF REVENUE
DOR/REMAINING ITAS BUDGET USED FOR OPERATIONS AND MAINTENANCE FOR TAX SYSTEM
SECTION 32.1. All remaining funds in Budget Code 24708 (Revenue‑IT Projects) for the Integrated Tax Administration System (ITAS) replacement project are hereby appropriated to support Portfolio Warehouse, Modernize eFile, and tax systems operations and maintenance upgrades.
PART XXXIII. OFFICE OF STATE CONTROLLER [RESERVED]
PART XXXIV. DEPARTMENT OF TRANSPORTATION
CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 34.1. Subsections (b) and (c) of Section 34.1 of S.L. 2017‑57 read as rewritten:
"SECTION 34.1.(b) The General Assembly authorizes and certifies anticipated revenues for the Highway Fund as follows:
For Fiscal
Year 2019‑2020 $ 2,277.7 million$ 2,288.5
million
For Fiscal
Year 2020‑2021 $ 2,374.9 million$ 2,376.7
million
For Fiscal
Year 2021‑2022 $ 2,403.4 million$ 2,415.6
million
For Fiscal
Year 2022‑2023 $ 2,427.3 million$ 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 $ 1,619.9 million$
1,576.4 million
For Fiscal
Year 2020‑2021 $ 1,654.6 million$ 1,604.1
million
For Fiscal
Year 2021‑2022 $ 1,675.6 million$
1,631.5 million
For Fiscal
Year 2022‑2023 $ 1,701.8 million$
1,669.4 million"
PART XXXV. SALARIES AND BENEFITS
ELIGIBLE STATE‑FUNDED EMPLOYEES AWARDED COst‑of‑living adjustment/ legislative INCREASES/EFFECTIVE JULY 1, 2017
SECTION 35.1.(a) Except as provided by subsection (b) of this section, a person (i) whose salary is set by this part, pursuant to the North Carolina Human Resources Act or as otherwise authorized in this act and (ii) who is employed in a State‑funded position on June 30, 2018, is awarded a cost‑of‑living adjustment as follows:
(1) The greater of one thousand two hundred fifty dollars ($1,250) or two percent (2%) effective July 1, 2018.
(2) As otherwise allowed or provided by law.
SECTION 35.1.(b) Teachers, principals, and assistant principals paid pursuant to a salary schedule or pay plan enacted in this act are not eligible to receive the legislative salary increases provided by subsection (a) of this section.
SECTION 35.1.(c) Certified law enforcement officers and certain public safety and mental health employees within the Department of Health and Human Services and the Department of Public Safety who are employed in a State‑funded position on June 30, 2018, are awarded a legislative increase of one thousand dollars ($1,000) in addition to the cost‑of‑living adjustment authorized in subsection (a) of this section.
SECTION 35.1.(d) Part‑time employees shall receive the increase authorized by this section on a prorated and equitable basis.
SECTION 35.2.(a) The salary of the Governor, as provided by G.S. 147‑11(a), shall remain unchanged.
SECTION 35.2.(b) The annual salaries for members of the Council of State, payable monthly, for the 2018‑2019 fiscal year are as follows:
Council of State Annual Salary
Lieutenant Governor $130,112
Attorney General 130,112
Secretary of State 130,112
State Treasurer 130,112
State Auditor 130,112
Superintendent of Public Instruction 130,112
Agriculture Commissioner 130,112
Insurance Commissioner 130,112
Labor Commissioner 130,112
CERTAIN EXECUTIVE BRANCH OFFICIALS
SECTION 35.3. The annual salaries, payable monthly, for the following executive branch officials for the 2018‑2019 fiscal year are as follows:
Annual Salary
Executive Branch Officials 2018‑2019
Chairman, Alcoholic Beverage
Control Commission $116,837
State Controller 162,691
Commissioner of Banks 131,132
Chair, Board of Review, Division
of Employment Security 128,626
Members, Board of Review,
Division of Employment Security 127,054
Chairman, Parole Commission 128,626
Full‑Time Members of the Parole Commission 118,927
Chairman, Utilities Commission 145,806
Members of the Utilities Commission 131,132
Executive Director, North Carolina
Agricultural Finance Authority 113,780
SECTION 35.4.(a) The annual salaries, payable monthly, for the following judicial branch officials for the 2018‑2019 fiscal year are as follows:
Annual Salary
Judicial Branch Officials 2018‑2019
Chief Justice, Supreme Court $153,088
Associate Justice, Supreme Court 149,115
Chief Judge, Court of Appeals 146,756
Judge, Court of Appeals 142,947
Judge, Senior Regular Resident Superior Court 139,091
Judge, Superior Court 135,236
Chief Judge, District Court 122,900
Judge, District Court 119,044
Chief Administrative Law Judge 120,064
District Attorney 130,779
Assistant Administrative Officer of the Courts 125,938
Public Defender 130,779
Director of Indigent Defense Services 134,788
SECTION 35.4.(b) The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts or the Commission on Indigent Defense Services, respectively, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district, for the 2018‑2019 fiscal year, do not exceed seventy‑eight thousand six hundred and fourteen dollars ($78,614) and the minimum salary of any assistant district attorney or assistant public defender is at least forty‑two thousand six hundred sixteen dollars ($42,616), effective July 1, 2018.
SECTION 35.4A. Effective July 1, 2018, G.S. 7A‑101(a) reads as rewritten:
"(a) The clerk of superior court is a full‑time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county as determined in subsection (a1) of this section, according to the following schedule:
Population Annual Salary
Less than
100,000 $89,188$90,972
100,000 to
149,999 99,834101,831
150,000 to
249,999 110,480112,690
250,000 and
above 121,131123,554
When a county changes from one population group to another, the salary of the clerk shall be changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate for the new population group, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office."
ASSISTANT AND DEPUTY CLERKS OF SUPERIOR COURT
SECTION 35.4B. Effective July 1, 2018, G.S. 7A‑102(c1) reads as rewritten:
"(c1) A full‑time assistant clerk or a full‑time deputy clerk, and up to one full‑time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks and Head Bookkeeper Annual Salary
Minimum $34,098$35,348
Maximum 59,96361,213
Deputy Clerks Annual Salary
Minimum 29,64630,896
Maximum 47,092.48,342."
SECTION 35.4C. Effective July 1, 2017, G.S. 7A‑171.1 reads as rewritten:
"§ 7A‑171.1. Duty hours, salary, and travel expenses within county.
(a) The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate.
(1) A full‑time magistrate shall be paid the annual salary indicated in the table set out in this subdivision. A full‑time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office. The Administrative Officer of the Courts shall designate whether a magistrate is full‑time. Initial appointment shall be at the entry rate. A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.
Table of Salaries of Full‑Time Magistrates
Step Level Annual Salary
Minimum Maximum
Entry Rate $37,862$39,112
Step 1 $39,519$40,769 40,65841,908
Step 2 42,44843,698 43,67344,923
Step 3 45,54846,798 46,86548,115
Step 4 49,26350,513 50,69051,940
Step 5 53,73954,989 55,29856,548
Step 6 58,75460,004 60,461.61,711.
…
(a1) Notwithstanding subsection (a) of this section, the following salary provisions apply to individuals who were serving as magistrates on June 30, 1994:
(1) The minimum and maximum salaries of magistrates who, on June 30, 1994, were paid at a salary level of less than five years of service under the table in effect that date shall be as follows:
Minimum Maximum
Less than 1 year
of service $30,099$31,349
1 or more but less
than 3 years of service $30,288$31,538 – 31,33332,583
3 or more but less
than 5 years of service 32,77334,023 – 33,81835,068
Upon completion of five years of service, those magistrates shall receive the salary set as the Entry Rate in the table in subsection (a).
(2) The salaries of magistrates who on June 30, 1994, were paid at a salary level of five or more years of service shall be based on the rates set out in subsection (a) as follows:
Salary Level Salary Level
on June 30, 1994 on July 1, 1994
5 or more but less than 7 years of service Entry Rate
7 or more but less than 9 years of service Step 1
9 or more but less than 11 years of service Step 2
11 or more years of service Step 3
Thereafter, their salaries shall be set in accordance with the provisions in subsection (a).
(3) The salaries of magistrates who are licensed to practice law in North Carolina shall be adjusted to the annual salary provided in the table in subsection (a) as Step 4, and, thereafter, their salaries shall be set in accordance with the provisions in subsection (a).
(4) The salaries of "part‑time magistrates" shall be set under the formula set out in subdivision (2) of subsection (a) but according to the rates set out in this subsection.
…."
SECTION 35.5.(a) Effective July 1, 2018, the annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly in effect on June 30, 2018, shall be legislatively increased by the greater of one thousand two hundred fifty dollars ($1,250) or two percent (2%).
SECTION 35.5.(b) Nothing in this act limits any of the provisions of G.S. 120‑32.
GENERAL ASSEMBLY PRINCIPAL CLERKS
SECTION 35.6. Effective July 1, 2018, G.S. 120‑37(c) reads as rewritten:
"(c) The principal clerks
shall be full‑time officers. Each principal clerk shall be entitled to
other benefits available to permanent legislative employees and shall be paid
an annual salary of one hundred eight thousand nine hundred twenty‑eight
dollars ($108,928), one hundred eleven thousand one hundred seven
dollars ($111,107), payable monthly. Each principal clerk shall also
receive such additional compensation as approved by the Speaker of the House of
Representatives or the President Pro Tempore of the Senate, respectively, for
additional employment duties beyond those provided by the rules of their House.
The Legislative Services Commission shall review the salary of the principal
clerks prior to submission of the proposed operating budget of the General
Assembly to the Governor and shall make appropriate recommendations for changes
in those salaries. Any changes enacted by the General Assembly shall be by
amendment to this paragraph."
SERGEANTS‑AT‑ARMS AND READING CLERKS
SECTION 35.7. Effective July 1, 2018, G.S. 120‑37(b) reads as rewritten:
"(b) The sergeant‑at‑arms
and the reading clerk in each house shall be paid a salary of four hundred
twenty‑nine dollars ($429.00) four hundred fifty‑three
dollars ($453.00) per week plus subsistence at the same daily rate provided
for members of the General Assembly, plus mileage at the rate provided for
members of the General Assembly for one round trip only from their homes to
Raleigh and return. The sergeants‑at‑arms shall serve during
sessions of the General Assembly and at such time prior to the convening of,
and subsequent to adjournment or recess of, sessions as may be authorized by
the Legislative Services Commission. The reading clerks shall serve during
sessions only."
SECTION 35.8.(a) Effective for the 2018‑2019 fiscal year:
(1) The State Board of Community Colleges may provide community college personnel salary increases in accordance with policies adopted by the Board. Funds appropriated for these compensation increases under Section 35.1 of this act may be used for any one or more of the following purposes: (i) merit pay, (ii) across‑the‑board increases, (iii) recruitment bonuses, (iv) retention increases, and (v) any other compensation increase pursuant to those policies.
(2) Funds appropriated for community college faculty bonuses shall be awarded pursuant to policies adopted by the State Board of Community Colleges. Notwithstanding G.S. 135‑1(7a), the bonus awarded under this section is not compensation under Article 1 of Chapter 135 of the General Statutes.
(3) The State Board of Community Colleges shall make a report on the use of compensation increase and faculty bonus funds to the Fiscal Research Division no later than March 1, 2019.
SECTION 35.8.(b) The minimum salaries for nine‑month, full‑time curriculum community college faculty for the 2018‑2019 fiscal year are as follows:
Minimum Salary
Education Level 2017‑2018
Vocational Diploma/Certificate or Less $38,094
Associate Degree or Equivalent 38,606
Bachelor's Degree 40,829
Master's Degree or Education Specialist 42,801
Doctoral Degree 45,644
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members.
UNIVERSITY OF NORTH CAROLINA SYSTEM
SECTION 35.9.(a) Effective for the 2018‑2019 fiscal year, the annual salaries of University of North Carolina SHRA employees shall be increased as provided by Section 35.1 of this act.
SECTION 35.9.(b) For the 2018‑19 fiscal year, the Board of Governors of The University of North Carolina may provide EHRA employees a salary increase pursuant to the policies adopted by the Board. Funds for EHRA compensation increases may be used for any one or more of the following purposes: (i) merit pay, (ii) across the board increases, (iii) recruitment bonuses, (iv) retention increases, and (v) any other compensation increase pursuant to those policies.
SECTION 35.9.(c) Funds appropriated for faculty bonuses shall be awarded pursuant to policies adopted by the Board of Governors of The University of North Carolina may provide. Notwithstanding G.S. 135‑1(7a), the bonus awarded under this section is not compensation under Article 1 of Chapter 135 of the General Statutes.
SECTION 35.9.(d) The Board of Governors of The University of North Carolina shall make a report on the use of compensation increase and bonus funds to the General Assembly by no later than March 1, 2019.
SECTION 35.10.(a) Employees of schools operated by the Department of Health and Human Services, the Department of Public Safety, and the State Board of Education who are paid on the Teacher Salary Schedule shall be paid as authorized by Section 8.1 of this act.
SECTION 35.10.(b) Employees of the School of Science and Mathematics of The University of North Carolina who are paid pursuant to a salary schedule adopted by the North Carolina School of Science and Math Board of Trustees shall be paid in accordance with the schedule adopted by the Board.
SECTION 35.11.(a) Salaries and related benefits for positions that are funded:
(1) Partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund shall be increased from the General Fund or Highway Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund.
(2) Fully from sources other than the General Fund or Highway Fund shall be increased as provided by this act. The Director of the Budget may increase expenditures of receipts from these sources by the amount necessary to provide the legislative increase to receipt‑supported personnel in the certified budget.
The Director of the Budget may increase expenditures of receipts from these sources in the certified budget by the amount necessary to provide the increases authorized by this part to receipt‑supported personnel. Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.
SECTION 35.11.(b) The legislative salary increases provided in this act for the 2018‑2019 fiscal year do not apply to persons separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to July 1, 2018. With respect to the legislative increases awarded in this part, payroll checks issued to employees after July 1 of each year that represent payment of services provided prior to July 1 of each year shall not be eligible for salary increases provided for in this act.
SECTION 35.11.(c) This section applies to all employees paid from State funds, whether or not subject to or exempt from the North Carolina Human Resources Act, including employees of public schools, community colleges, and The University of North Carolina.
SECTION 35.12. Unless otherwise expressly provided by this part, the annual salaries in effect for the following persons on June 30, 2018, shall be legislatively increased as provided by Section 35.1 of this act:
(1) Permanent, full‑time State officials and persons whose salaries are set in accordance with the State Human Resources Act.
(2) Permanent, full‑time State officials and persons in positions exempt from the State Human Resources Act.
(3) Permanent, part‑time State employees.
(4) Temporary and permanent hourly State employees.
SECTION 35.13.(a) Article 4 of Chapter 143C of the General Statutes is amended by adding a new section to read:
"§ 143C‑4‑10. Salary Adjustment Fund.
(a) Creation. – The Salary Adjustment Fund is established within the General Fund. The General Assembly shall appropriate in the Current Operations Appropriations Act, or other appropriations act, a specific amount to this reserve for salary adjustments in the executive, judicial, and legislative branches.
(b) Authorized Uses. – The Salary Adjustment Fund shall be used to provide salary adjustments using allowable human resource practices, including in‑range adjustments, salary range revisions, allowances/geographic site differentials, and reclassifications, as follows:
(1) To address recruitment and retention of hard‑to‑staff, high‑turnover positions.
(2) To address salaries relative to market rates.
(3) To provide adjustments for employees with qualifications, including specialized skills, certifications, education, or experience, that significantly exceeds minimum qualifications.
Adjustments must be documented through data collection and analysis according to accepted human resource professional practices and standards. Further, funds may only be used for salary adjustments for the stated purposes that comply with the laws and adopted policies of the appropriate governing entity.
(c) Report. – The Director of the Budget may transfer to General Fund budget codes from the Salary Adjustment Fund amounts required to support salary adjustments authorized by this section. The Director of the Budget shall report to the Joint Legislative Commission on Governmental Operations within 30 days of allocation of the funds."
SECTION 35.13.(b) Section 35.14 of S.L. 2017‑57 is repealed.
USE OF FUNDS APPROPRIATED FOR cost‑of‑living adjustment/LEGISLATIVE INCREASES
SECTION 35.14.(a) The appropriations set forth in Section 2.1 of this act include appropriations for cost‑of‑living adjustments and legislatively mandated employee benefit increases. The Office of State Budget and Management shall ensure that those funds are used only for the purposes of salary increases and employee benefits.
SECTION 35.14.(b) If the Director of the Budget determines that funds appropriated to a State agency for legislatively mandated salary increases and employee benefits exceed the amount required by that agency for those purposes, the Director may reallocate those funds to other State agencies that received insufficient funds for required cost‑of‑living and benefit increases.
SECTION 35.14.(c) Any funds appropriated for cost‑of‑living adjustment and legislatively mandated benefits increases in excess of the amounts required to implement the increases shall be used as follows:
(1) Up to five hundred thousand dollars ($500,000) may be used to fund sign‑on and referral bonuses with the Department of Public Safety, if funds in excess of those appropriated in this act are needed.
(2) All remaining funds shall be credited to the Pay Plan Reserve established in G.S. 143C‑4‑8.
SECTION 35.14.(d) Section 35.15 of S.L. 2017‑57 is repealed.
REQUIRE SUBMISSION OF PAY PLAN DESIGN
SECTION 35.15. G.S. 143C‑4‑9 reads as rewritten:
"§ 143C‑4‑9. Pay Plan Reserve.
…
(c) Request for Allocation.
– After January 1 of each fiscal year, an agency may request an allocation from
the Pay Plan Reserve by submitting proof submitting:
(1) A detailed description of the pay plan design, including the salary or salary range at each step within the pay plan and the criteria for movement between steps of the pay plan.
(2) Proof to the Office of State Budget and Management (OSBM) that the agency has exhausted or is projected to exhaust funds appropriated for statutory or scheduled salary and benefit expenses.
The OSBM must certify the need for any allocation before disbursing funds from the reserve. The OSBM shall report to Fiscal Research Division on or before April 1 of each year on any disbursements made from the reserve and regarding projected recurring appropriations necessary to fully fund positions eligible for funding in the next fiscal year. Funds from the reserve may be allocated and reallocated only as expressly provided by this section."
DPS SIGN‑ON AND REFERRAL BONUSES
SECTION 35.16.(a) Notwithstanding G.S. 126‑18, the Department of Public Safety shall develop a referral bonus programs for hard‑to‑fill positions. Referral bonuses shall provide one‑time bonuses to any Department of Public Safety employee who refers an applicant who is hired into a hard‑to‑fill position. Bonuses paid through this program shall not exceed five hundred dollars ($500) in total. The Department shall develop additional program guidelines and policies for the referral bonuses in consultation with the Office of State Budget and Management and the Office of State Human Resources.
SECTION 35.16.(b) Sign‑on bonuses, authorized by the State Human Resources Commission in April 2018, shall provide one‑time bonuses to applicants hired into a hard‑to‑fill position who complete a probationary period to be determined by the department. Bonuses paid through this program shall not exceed one thousand five hundred dollars ($1,500) in total. The Department shall develop additional program guidelines and policies for sign‑on bonuses in consultation with the Office of State Budget and Management and the Office of State Human Resources.
SECTION 35.16.(c) Notwithstanding G.S. 135‑1(7a), bonuses awarded through the sign‑on and referral bonus programs are not compensation under Article 1 of Chapter 135 of the General Statutes.
SECTION 35.16.(d) The Department of Public Safety shall submit a report to the Joint Legislative Oversight Committee on Justice and Public Safety, the Fiscal Research Division, and the Office of State Budget and Management on the sign‑on and referral bonuses by April 1, 2019. The report shall include:
(1) A detailed description of the sign‑on and referral bonus programs developed, including positions eligible for the program and criteria used to determine eligibility.
(2) Information on the number of total referrals, number of hired referrals, and number of sign‑on and referral bonuses paid.
(3) Total expenditures on sign‑on and referral bonuses paid.
(4) An analysis of changes in vacancy rates, time‑to‑fill, and turnover for positions eligible for sign‑on and referral bonuses.
STUDY DPS USE OF CERTIFICATION/COMPENSATION AND BENEFITS OF CERTIFIED EMPLOYEES
SECTION 35.17.(a) The Department of Public Safety, in consultation with the Office of State Human Resources and the Office of State Budget and Management, shall study the compensation and benefits provided to all Department personnel certified by the Criminal Justice Training and Standards Division of the Department of Justice. The study shall include an analysis of the criteria used to determine which positions are certified; a comparison of the compensation and benefits of certified personnel within the Department, in other states, and across units of government; and recommendations for compensation and benefit changes to standardize benefits across certified positions.
SECTION 35.17.(b) The Department may use up to twenty‑five thousand dollars ($25,000) of funds available to the Department to contract for research and analysis on the use of certified personnel and the compensation and benefits of certified personnel across other states and units of government.
EXTEND REORGANIZATION THROUGH REDUCTION TO UNC SYSTEM
SECTION 35.18. G.S. 126‑7.1 reads as rewritten:
"§ 126‑7.1. Posting requirement; State employees receive priority consideration; reduction‑in‑force; Work First hiring; reorganization through reduction.
…
(j) A department or office listed in G.S. 126‑5(d)(1) or (2) and The University of North Carolina and its constituent institutions may reorganize and restructure its positions through a voluntary separation process, in accordance with a policy approved by the State Human Resources Commission and subject to funding and approval by the Office of State Budget and Management."
SALARY DETERMINATIONS FOR CERTAIN LICENSED HEALTH PROFESSIONALS
SECTION 35.19. Part 35 of S.L. 2017‑57 is amended by adding a new section to read:
"SALARY DETERMINATIONS FOR CERTAIN LICENSED HEALTH PROFESSIONALS
"SECTION 35.18D. State agencies, departments, and institutions shall have salary administration flexibility for licensed physicians, dentists, nurses, physician assistants, pharmacists, and other allied health professionals and may exercise the flexibility within existing resources. No salary determination made under this section may exceed the maximum of the applicable salary range established by the Office of State Human Resources under Chapter 126 of the General Statutes. On or before September 1, and annually, the Office of State Human Resources shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on the salary actions taken under this section."
SPECIAL ANNUAL LEAVE BONUS
SECTION 35.20.(a) Any person who is (i) a full‑time, permanent employee of the State, a community college, or a local board of education on July 1, 2018, and (ii) eligible to earn annual leave shall have a one‑time, additional five days of annual leave credited on July 1, 2018.
SECTION 35.20.(b) The additional leave shall be accounted for separately with the leave provided by Section 28.3A of S.L. 2002‑126, by Section 30.12B(a) of S.L. 2003‑284, by Section 29.14A of S.L. 2005‑276, by Section 35.10A of S.L. 2014‑100, and by Section 35.18A of S.L. 2017‑57. The leave shall remain available until used, notwithstanding any other limitation on the total number of days of annual leave that may be carried forward. Part‑time permanent employees shall receive a pro rata amount of the five days.
SALARY‑RELATED CONTRIBUTIONS
SECTION 35.21.(a) Section 35.19(c) of S.L. 2017‑57 is repealed.
SECTION 35.21.(b) Effective July 1, 2018, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2018‑2019 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:
Teachers
and State State
Employees LEOs ORPs CJRS LRS
Retirement 12.41% 12.41% 6.84% 34.06% 22.49%
Disability 0.14% 0.14% 0.14% 0.00% 0.00%
Death 0.16% 0.16% 0.00% 0.00% 0.00%
Retiree Health 6.27% 6.27% 6.27% 6.27% 6.27%
NC 401(k) 0.00% 5.00% 0.00% 0.00% 0.00%
Total Contribution
Rate 18.98% 23.98% 13.25% 40.63% 29.06%
The rate for teachers and State employees and State law enforcement officers includes one one‑hundredth percent (0.01%) for the Qualified Excess Benefit Arrangement.
PROVIDE COST‑OF‑LIVING ADJUSTMENT FOR RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM
SECTION 35.22.(a) G.S. 135‑5 is amended by adding a new subsection to read:
"(www) From and after July 1, 2018, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2017, shall be increased by one percent (1%) of the allowance payable on June 1, 2018, in accordance with subsection (o) of this section. Furthermore, from and after July 1, 2018, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2017, but before June 30, 2018, shall be increased by a prorated amount of one percent (1%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2017, and June 30, 2018."
SECTION 35.22.(b) G.S. 135‑65 is amended by adding a new subsection to read:
"(hh) From and after July 1, 2018, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2017, shall be increased by one percent (1%) of the allowance payable on June 1, 2018. Furthermore, from and after July 1, 2018, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2017, but before June 30, 2018, shall be increased by a prorated amount of one percent (1%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2017, and June 30, 2018."
SECTION 35.22.(c) G.S. 120‑4.22A is amended by adding a new subsection to read:
"(bb) In accordance with subsection (a) of this section, from and after July 1, 2018, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 2018, shall be increased by one percent (1%) of the allowance payable on June 1, 2018. Furthermore, from and after July 1, 2018, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 2018, but before June 30, 2018, shall be increased by a prorated amount of one percent (1%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 2018, and June 30, 2018."
457 CONTRIBUTIONS FOR CERTIFIED CUSTODY OFFICERS
SECTION 35.23.(a) Pursuant to G.S. 147‑9.4, the Department of Public Safety (Department), in consultation with the Department of State Treasurer, the Criminal Justice Education and Training Standards Commission within the Department of Justice (Commission), and the Office of State Budget and Management, shall develop a plan to make employer contributions to the North Carolina Public Employee Deferred Compensation Plan (NC 457) for departmental employees certified by the Commission as State Correctional Officers. The plan for employer contributions to the NC 457 shall include:
(1) Auto‑enrollment for eligible employees as authorized in subsection (d) of this section.
(2) Annual contributions to each eligible employee's NC 457 on their anniversary date.
(3) A contribution plan based on years of service in a position certified by the Commission as State Correctional Officers.
(4) An analysis showing that expected costs for fiscal year 2018‑2019 do not exceed ten million ($10,000,000) per year over a five‑year period.
SECTION 35.23.(b) The Department shall make no contributions for service prior to July 1, 2018, though service prior to July 1, 2018, may be considered in the development of contribution rates and in contributions made to certified employees. Contributions for fiscal year 2018‑2019 shall begin January 1, 2019, and shall be retroactive to July 1, 2018.
SECTION 35.23.(c) The Office of the State Controller shall work with the Department and the Commission to update the Integrated HR/Payroll system to track length of service in a certified position. This update shall be completed prior to January 1, 2019.
SECTION 35.23.(d) G.S. 143B‑426.24 reads as rewritten:
"§ 143B‑426.24. North Carolina Public Employee Deferred Compensation Plan.
…
(h1) Notwithstanding any other
law, provision of law to the contrary, an employee of any county
or municipality, an employee of the North Carolina Community College System, or
an employee of any political subdivision of the State may participate in any
457 Plan adopted by the State, with the consent of the Supplemental Retirement
Board and with the consent of the proper governing authority of such county,
municipality, community college, or political subdivision of the State where
such employee is employed. Furthermore, notwithstanding any provision of law
to the contrary, the governing body of a county or municipality, the North
Carolina Community College System, or a political subdivision of the State, or
in the case of the State (or any department or agency of the State), by the
General Assembly, may automatically enroll employees in the Plan. The
contributions made on behalf of such an employee, whether deferrals from the
employee's compensation or otherwise, shall be in the amounts established by
the applicable governing body or, if not established by such governing body,
the Supplemental Retirement Board, unless otherwise selected by the employee.
The contributions of an automatically enrolled employee shall be invested in a
default investment option, as determined by the Supplemental Retirement Board,
unless otherwise selected by the employee. An employee who is automatically
enrolled in the Plan must be notified by the employer and permitted to withdraw
from the Plan at least 90 days prior to any contribution to the Plan on behalf
of the employee.
…."
SECTION 35.23.(e) The Department shall report the final contribution plan and eligibility criteria to the Joint Legislative Committee on Justice and Public Safety on or before December 1, 2018.
PART XXXVI. CAPITAL APPROPRIATIONS
CAPITAL APPROPRIATIONS/GENERAL FUND
SECTION 36.1. Section 36.2(a) of S.L. 2017‑57 reads as rewritten:
"SECTION 36.2.(a) There is appropriated from the General Fund for the 2017‑2019 fiscal biennium the following amounts for capital improvements:
Capital Improvements – General Fund 2017‑2018 2018‑2019
Department of Administration
Capital Master Plan Update $1,000,000
Department of Environment and
Natural Resources
Department of Environmental Quality
Water Resources Development $15,648,000 $12,056,000
West Bay Vessel Replacement 1,500,000
Reedy Creek Lab Renovation and
Expansion Planning 1,500,000
Department of Public Safety
Greenville Office Building & Garage 2,000,000 $1,917,993
National Guard – Joint Forces HQ Helipad 1,000,000 –
Youth Development Center in Rockingham County 13,200,000 –
Stonewall Jackson Youth Development Center fence 200,000 –
National Guard – DuPont Forest
Joint Training Center 100,000 –
Western Readiness Center Annex 809,000
Department of Justice
Memorial for Fallen Law Enforcement
Officers Planning $50,000
Department of Natural and Cultural Resources
Fort Fisher Museum and Visitor Center 5,000,000 –
Fayetteville Civil War Museum project 5,000,000 –
State Capitol African American Monument $1,800,000
Dinosaur Laboratory and Exhibit 1,800,000 Graveyard of the Atlantic Renovation 1,000,000
Museum of History Expansion Planning 1,000,000
Department of Health and Human Services
New Maintenance Facility – Cherry Hospital $4,300,000
Fayetteville State University
Health & Wellness Facility 5,500,000 –
Department of Agriculture and Consumer Services
Emergency Programs Warehouse 500,000 –
Eaddy Building Renovation and Expansion $760,000
Office of State Budget and Management
Department of Health and Human Services
Relocation $2,000,000
Cleveland Community College
Center for Advanced Manufacturing 5,000,000 –
Brunswick Community College
Gym renovations 60,000 –
Stanly Community College
Culinary Arts facility 500,000 –
University of North Carolina‑Chapel Hill
New Business School building 1,000,000 –
TOTAL CAPITAL IMPROVEMENTS –
GENERAL FUND $54,708,000 $1,917,993$31,492,993"
WATER RESOURCES DEVELOPMENT PROJECTS
SECTION 36.2.(a) The Department of Environmental Quality shall allocate funds for water resources development projects in accordance with the schedule that follows. The amounts set forth in the schedule include funds appropriated in this act for water resources development projects and funds carried forward from previous fiscal years in accordance with subsection (b) of this section. These funds will provide a State match for an estimated fifty‑seven million seven hundred eighty‑eight thousand dollars ($57,788,000) in federal funds.
(1) Wilmington Harbor DA Maintenance $3,192,000
(2) Morehead City Maintenance 1,500,000
(3) Princeville Flood Damage Reduction 431,000
(3) Masonboro Island Sand Migration 6,500,000
(4) Carolina Beach Coastal Storm Damage Reduction 1,836,000
(5) Kure Beach Coastal Storm Risk Management 2,855,000
(6) Planning Assistance to Communities 38,000
(7) Bogue Banks Coastal Storm Risk Management 202,000
(8) Surf City/North Topsail Beach Coastal Storm Risk Management 255,000
(9) West Onslow Coast Storm Risk Management 220,000
(10) Neuse River Goldsboro Section 1135 CAP 333,000
(11) NRCS EQIP 3,857,000
(12) State‑Local Projects 2,873,000
(13) Eastern NC Storm Debris Removal 1,500,000
(14) Concord Streams, Section 206 CAP 1,023,000
(15) Manteo Old House Channel, Section 204 CAP 2,219,000
(16) Lumberton 205 CAP, Flood Damage Reduction 125,000
(17) B. Everette Jordan Reservoir Water Supply 148,000
(18) Kunz Farm Park Riverwalk 250,000
(19) Brunswick Town Fort Anderson Cape Fear Streamline Restoration 487,000
(20) Wrightsville Beach Coastal Storm Damage Reduction 2,215,000
(21) New River Storm Damage Reduction 2,000,000
(22) Cape Fear Lock and Dam #2 and #3 Fish Ramp 840,000
(23) Town of Rutherfordton Stream Restoration 500,000
(24) Ararat River Greenway/Stream Restoration 500,000
(25) Ocean Isle Coastal Storm Damage Restoration 65,000
TOTALS $37,064,000
SECTION 36.2.(b) It is the intent of the General Assembly that funds carried forward from previous fiscal years be used to supplement the fifteen million six hundred forty‑eight thousand dollars ($15,648,000) appropriated for water resources development projects in this section. Therefore, the following funds carried forward from previous fiscal years shall be used for the following projects:
Name of Project 2018‑2019
(1) Wilmington Harbor DA Maintenance $763,000
(2) Morehead City Maintenance 1,500,000
(3) Princeville Flood Damage Reduction 431,000
(4) Carolina Beach Coastal Storm Damage Reduction 1,836,000
(5) Kure Beach Coastal Storm Risk Management 731,000
(6) Planning Assistance to Communities 25,000
(7) Bogue Banks Coastal Storm Risk Management 15,000
(8) Surf City/North Topsail Beach Coastal Storm Risk Management 255,000
(9) West Onslow Coast Storm Risk Management 220,000
(10) Neuse River Goldsboro Section 1135 CAP 25,000
(11) NRCS EQIP 3,857,000
(12) State‑Local Projects 2,873,000
(13) Eastern NC Storm Debris Removal 1,500,000
(14) Concord Streams, Section 206 CAP 1,023,000
(15) Manteo Old House Channel, Section 204 CAP 2,219,000
(17) B. Everette Jordan Reservoir Water Supply 148,000
(18) Kunz Farm Park Riverwalk 250,000
(20) Wrightsville Beach Coastal Storm Damage Reduction 2,215,000
(21) New River Storm Damage Reduction 2,000,000
(22) Cape Fear Lock and Dam #2 and #3 Fish Ramp 840,000
(23) Town of Rutherfordton Stream Restoration 500,000
(24) Ararat River Greenway/Stream Restoration 500,000
(25) Ocean Isle Coastal Storm Damage Restoration 65,000
TOTALS $25,008,000
(1) U.S. Army Corps of Engineers project feasibility studies.
(2) U.S. Army Corps of Engineers projects whose schedules have advanced and require State‑matching funds in the 2018‑2019 fiscal year.
(3) State‑local water resources development projects.
Funds subject to this subsection that are not expended or encumbered for the purposes set forth in subdivisions (1) through (3) of this subsection shall revert to the General Fund at the end of the 2018‑2019 fiscal year.
(1) All projects listed in this section.
(2) The estimated cost of each project.
(3) The date that work on each project began or is expected to begin.
(4) The date that work on each project was completed or is expected to be completed.
(5) The actual cost of the project.
The semiannual reports also shall show those projects advanced in schedule, those projects delayed in schedule, and an estimate of the amount of funds expected to revert to the General Fund.
NON‑GENERAL FUND CAPITAL IMPROVEMENT AUTHORIZATIONS
SECTION 36.3. Section 36.4(a) of S.L. 2017‑57 reads as rewritten:
"SECTION 36.4.(a) The General Assembly authorizes the following capital projects to be funded with receipts or from other non‑General Fund sources available to the appropriate department:
Amount of Non‑General Fund
Name of Project Funding Authorized
FY 2017‑2018 FY 2018‑2019
Department of Military and Veterans Affairs
New State Veterans Home – Triangle Region $38,890,000
New State Veterans Home – Triad Region 38,890,000
Cemetery Expansion 9,614,483
Repairs and Renovations of State Veterans Homes 2,800,000
Department of Natural and Cultural Resources
Museum of Art‑ New Park and Pavilion Building 915,300 –
Roanoke Island Aquarium Generator Building 480,000
Tryon Palace Garden Cottage 500,000
Wildlife Resources Commission
Land Acquisition 7,000,000 3,000,000
Infrastructure Repair/Renovation 1,500,000 –
Setzer Hatchery Building Replacement 750,000 –
Boating Access 900,000 900,000
Setzer Hatchery Raceways Replacement 4,500,000 –
Outer Banks Education Center Air Handlers – 300,000
Burnsville Depot 500,000 –
Butner Lab & Storage Building 500,000 –
Bolivia Depot 750,000 –
New Shooting Ranges 1,000,000 1,000,000
Department of Public Safety
Nash Correctional Institution
Field Ministry Program Facility 3,800,000 –
Chase Laundry Air Handling Units Replacements 950,000
Chase Laundry Roof Replacement 742,000
Security Cameras and Systems 400,000
TOTAL AMOUNT OF NON‑GENERAL
FUND CAPITAL PROJECTS
AUTHORIZED $22,115,300 $5,200,000$98,468,083"
REPAIRS AND RENOVATIONS RESERVE ALLOCATION
SECTION 36.4. Section 36.5 of S.L. 2017‑57 reads as rewritten:
"SECTION 36.5.(a) Of
the funds in the Reserve for Repairs and Renovations for the 2017‑2018
fiscal year, 2017‑2019 fiscal biennium, the following
allocations shall be made to the following agencies for repairs and renovations
pursuant to G.S. 143C‑4‑3:
(1) One‑half of the funds shall be allocated to the Board of Governors of The University of North Carolina.
(2) One‑half of the funds shall be allocated to the Office of State Budget and Management.
The Office of State Budget and Management shall consult with or report to the Joint Legislative Commission on Governmental Operations, as appropriate, in accordance with G.S. 143C‑4‑3(d). The Board of Governors shall report to the Joint Legislative Commission on Governmental Operations in accordance with G.S. 143C‑4‑3(d).
"SECTION 36.5.(b) Notwithstanding G.S. 143C‑4‑3(d), of the funds allocated to the Board of Governors of The University of North Carolina in subsection (a) of this section, a portion shall be used each fiscal year by the Board of Governors for the installation of fire sprinklers in University residence halls. This portion shall be in addition to funds otherwise appropriated in this act for the same purpose. Such funds shall be allocated among the University's constituent institutions by the President of The University of North Carolina, who shall consider the following factors when allocating those funds:
(1) The safety and well‑being of the residents of campus housing programs.
(2) The current level of housing rents charged to students and how that compares to an institution's public peers and other UNC institutions.
(3) The level of previous authorizations to constituent institutions for the construction or renovation of residence halls funded from the General Fund or from bonds or certificates of participation supported by the General Fund since 1996.
(4) The financial status of each constituent institution's housing system, including debt capacity, debt coverage ratios, credit rankings, required reserves, the planned use of cash balances for other housing system improvements, and the constituent institution's ability to pay for the installation of fire sprinklers in all residence halls.
(5) The total cost of each proposed project, including the cost of installing fire sprinklers and the cost of other construction, such as asbestos removal and additional water supply needs.
The Board of Governors shall submit progress reports to the Joint Legislative Commission on Governmental Operations. Reports shall include the status of completed, current, and planned projects. Reports also shall include information on the financial status of each constituent institution's housing system, the constituent institution's ability to pay for fire protection in residence halls, and the timing of installation of fire sprinklers. Reports shall be submitted on January 1 and July 1 until all residence halls have fire sprinklers.
"SECTION 36.5.(c) Notwithstanding G.S. 143C‑4‑3(d), of the funds allocated to the Board of Governors of The University of North Carolina in subsection (a) of this section, a portion shall be used each fiscal year by the Board of Governors for campus public safety improvements allowable under G.S. 143C‑4‑3(b).
"SECTION 36.5.(d) In making campus allocations of funds allocated to the Board of Governors of The University of North Carolina in subsection (a) of this section, the Board of Governors shall negatively weight the availability of non‑State resources and carryforward funds available for repair and renovations and shall include information about the manner in which this subsection was complied within any report submitted pursuant to G.S. 143C‑4‑3(d).
"SECTION 36.5.(e) Notwithstanding G.S. 143C‑4‑3, of the funds allocated from the Reserve for Repairs and Renovations for the 2017‑2018 fiscal year, the following sums shall be allocated for the following projects:
(1) One million seven hundred fifty thousand dollars ($1,750,000) shall be allocated to the Department of Public Safety to be provided to the North Carolina National Guard for the demolition of Western Youth Correctional Facility.
(2) Two million dollars ($2,000,000) shall be allocated to the Department of Natural and Cultural Resources for the repairs and renovation projects involving the U.S.S. North Carolina Battleship.
(3) Three hundred thousand dollars ($300,000) shall be allocated to weatherproof Goodwin Hall and Joiner Hall at the North Carolina School for the Deaf in Morganton.
(4) Ten million dollars ($10,000,000) shall be allocated for the comprehensive renovation and repurposing of West Hall at the University of North Carolina at Pembroke.
(5) Two million five hundred thousand dollars ($2,500,000) shall be allocated to the Department of Natural and Cultural Resources, Division of Parks and Recreation, for repair and renovation projects at Morrow Mountain State Park in Stanly County.
(6) Four million five hundred thousand dollars ($4,500,000) shall be allocated to the Department of Natural and Cultural Resources for repair and renovation projects at the North Carolina Zoological Park.
(7) Two million two hundred
thousand dollars ($2,200,000) shall be allocated to the Department of Public
Safety to renovate the Swannanoa Correctional Center for Women the
former North Piedmont Correctional Center for Women to allow for portions
to be used for a female Confinement Response to Violation (CRV) facility.
(8) Seven hundred fifty thousand dollars ($750,000) shall be allocated for the energy production facility replacement project at Western Carolina University."
RESERVE FOR PUBLIC SAFETY IMPROVEMENTS AT STATE AND LOCAL FACILITIES
SECTION 36.5.(a) Creation and Source of Funds. – The Reserve for Public Safety Improvements at State and Local Facilities is established as a statewide reserve. Any reserve funds for capital improvements and renovation projects will be moved to a capital fund once the funds have been distributed to the agency. All other uses will be administered out of the agency's general fund.
SECTION 36.5.(b) The funds shall be allocated in the following manner:
(1) Twenty‑five million dollars ($25,000,000) shall be allocated to the State Board of Education for public safety improvements at local administrative units, regional schools, charter schools, and laboratory schools.
(2) Twenty million dollars ($20,000,000) shall be allocated to The University of North Carolina Board of Governors for public safety improvements at constituent institutions.
(3) Twenty million dollars ($20,000,000) shall be allocated to the State Board of Community Colleges for public safety improvements at community colleges.
(4) Twenty‑five million dollars ($25,000,000) shall be allocated to the Department of Public Safety for public safety improvements at correctional institutions and for improvements to the Voice Interoperability Plan for Emergency Responders.
(5) Ten million dollars ($10,000,000) shall be allocated to the Office of State Budget and Management for public safety improvements at State Agencies.
SECTION 36.5.(c) Use of Funds. – The funds in the Reserve for Public Safety Improvements at State and Local Facilities may be used for the following types of public safety improvements:
(1) Improvements and expansion of existing capital facilities to provide increased protection, improved notification, and reduced risk from external harm. Examples of such improvements include, but are not limited to, improved doors and windows, guard stations, fencing, and renovations to support items in subdivision (2) of this subsection.
(2) Purchase of equipment to provide increased monitoring of facilities, notification to emergency responders, and improved response to life threatening events. Examples of such equipment include, but are not limited to, panic buttons, worn devices that can create an emergency notification, cameras, and monitors.
(3) Improvements to communications and data systems to provide improved response and coordination in the event of a public safety disturbance at a State or local facility. Examples of such communications improvements include, but are not limited to, Voice Interoperability Plan for Emergency Responders improvements, security alarms and notification systems, telephone systems, and alert notification systems.
(4) Development of security master plans and procedures.
(5) Training of personnel regarding best practices and procedures for emergency response, public safety risk identification, and related items.
SECTION 36.5.(d) Application Process. – Each entity receiving funds in subsection (b) of this section shall request applications from relevant recipients.
The State Board of Education shall include need‑based considerations in its criteria for awarding these funds to local school administrative units, regional schools, charter schools, and laboratory schools.
SECTION 36.5.(e) Non‑Supplant of Funds. – Funds shall be used to supplement and not to supplant State, local, and federal funds for public safety improvements.
SECTION 36.5.(f) On or before May 1 of each year, each entity receiving funds in subsection (b) of this section shall submit a report to the Joint Legislative Commission on Governmental Operations. The report shall contain the following:
(1) Number and description of projects awarded.
(2) Total cost of each project awarded.
(3) Number of applications received.
(4) The basis on which the projects were evaluated.
(5) If applications received subject to subsection (d) of this section were more than the funds available to the entity, the basis on which projects were selected to receive funding.
REALLOCATION OF CONNECT NC BONDS FOR COMPLETED STATE PARK PROJECTS
SECTION 36.6. Section 1(f)(2) of S.L. 2015‑280 is amended by adding a new sub‑subdivision to read:
"(2) Special Allocation Provisions. – In determining the use of the proceeds of public improvement bonds and notes, including premium thereon, if any, set forth in subdivision (1) of this subsection, the following special allocation provisions apply:
a. The proceeds of public improvement bonds and notes, including premium thereon, if any, for Statewide capital repairs and renovations for The University of North Carolina, as provided in subdivision (1) of this subsection, shall be used for projects that are eligible to receive funds from the Repairs and Renovations Reserve under G.S. 143C‑4‑3(b). Any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 10 years or must extend the life of the facility by at least 10 years once renovated or rehabilitated. Such proceeds (i) shall be prioritized to constituent institutions not otherwise specified as receiving proceeds under subdivision (1) of this subsection and (ii) shall not be used to increase any amount to a constituent institution otherwise specified as receiving proceeds under subdivision (1) of this subsection.
b. The proceeds of public improvement bonds and notes, including premium thereon, if any, for NC Community Colleges, as provided in subdivision (1) of this subsection, shall be used for new construction or rehabilitation of existing facilities and repairs and renovations. Any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 10 years or must extend the life of the facility by at least 10 years once renovated or rehabilitated. In order to receive the proceeds under this sub‑subdivision for projects for new construction, the community college receiving the proceeds shall provide local matching funds from county funds, other non‑State funds, or a combination of these sources for such proceeds. The amount of matching funds shall be (i) one dollar ($1.00) of local matching funds for every three dollars ($3.00) of such proceeds for a community college with a main campus located in a development tier one area, as defined in G.S. 143B‑437.08, (ii) one dollar ($1.00) of local matching funds for every two dollars ($2.00) of such proceeds for a community college with a main campus located in a development tier two area, as defined in G.S. 143B‑437.08, and (iii) one dollar ($1.00) of local matching funds for every one dollar ($1.00) of such proceeds for a community college with a main campus located in a development tier three area, as defined in G.S. 143B‑437.08. Community colleges are not required to match bond proceeds allocated in this section for rehabilitation of existing facilities and repairs and renovations.
c. The proceeds of public improvement bonds and notes, including premium thereon, if any, for the Department of Environment and Natural Resources for Statewide Children With Disabilities and Veterans With Disabilities Local Parks (Matching Grants), as provided in subdivision (1) of this subsection, shall be allocated to the Parks and Recreation Trust Fund established in G.S. 113‑44.15 and shall be used exclusively for grants to local government units or public authorities, as defined in G.S. 159‑7, for construction of special facilities or adaptation of existing facilities that meet the unique needs of children with physical and developmental disabilities and veterans with physical and developmental disabilities and enable them to participate in recreational and sporting activities, regardless of their abilities. In order to receive such proceeds under this sub‑subdivision, a local government unit or public authority shall provide matching funds in the amount of one dollar ($1.00) of local funds for every four dollars ($4.00) of such proceeds. Grants made using such proceeds under this sub‑subdivision shall not exceed five hundred thousand dollars ($500,000) per project.
d. The proceeds of public improvement bonds and notes, including premium thereon, if any, for the Department of Environmental Quality for Statewide Water/Sewer Loans and Grants, as provided in subdivision (1) of this subsection, shall be allocated to the Water Infrastructure Fund established in G.S. 159G‑22. One hundred million dollars ($100,000,000) shall be used for grants, and the remainder shall be used for low‑interest loans. The proceeds for loans and the proceeds for grants shall be allocated in equal proportion to the Drinking Water Reserve and the Wastewater Reserve and shall be subject to the following:
1. If the availability of loan funds exceeds project demand, the limits contained in G.S. 159G‑36 applicable to a loan may be exceeded for the purpose of ensuring that all available loan funds are utilized for projects prioritized pursuant to G.S. 159G‑23.
2. Loan and grant applications for projects shall be funded first if both of the following criteria are met: (i) the project is required to be completed due to an EPA administrative order or consent decree and (ii) the application for the project is deemed complete by the Division and meets the minimum requirements for the program from which it is seeking funding.
3. A grant application to be funded from the Wastewater Reserve and required to be prioritized under sub‑sub‑subdivision 2. of this sub‑subdivision shall be awarded a grant equal to fifty percent (50%) of the project costs that are reasonably necessary to comply with the EPA administrative order or consent decree, notwithstanding limits otherwise applicable pursuant to G.S. 159G‑36; provided that, the cumulative amount of all grants received by an applicant under this sub‑subdivision does not exceed one‑third of the amount of bond proceeds for grants allocated to the Wastewater Reserve.
4. A loan application to be funded from the Wastewater Reserve and required to be prioritized under sub‑sub‑subdivision 2. of this sub‑subdivision shall receive a loan equal to the amount sufficient to cover all project costs that are reasonably necessary to comply with the EPA administrative order or consent decree minus the amount of any grant awarded under sub‑sub‑subdivision 3. of this sub‑subdivision; provided that, the cumulative amount of all loans received by an applicant under this sub‑subdivision does not exceed fifteen million dollars ($15,000,000).
e. The proceeds of public improvement bonds and notes, including premium thereon, if any, for National Guard, as provided in subdivision (1) of this subsection, shall be used by the Adjutant General of the North Carolina National Guard for capital improvements, as defined in G.S. 143C‑1‑1(d)(5), for readiness centers located in Guilford, Burke, and Wilkes Counties.
f. The proceeds of public improvement bonds and notes, including premium thereon, if any, for the North Carolina Zoological Park, as provided in subdivision (1) of this subsection, shall be used for capital improvements, as defined in G.S. 143C‑1‑1(d)(5). Any items purchased with such proceeds and installed or replaced as part of a renovation or rehabilitation must have a useful life of at least 10 years or must extend the life of the facility by at least 10 years once renovated or rehabilitated.
g. The proceeds of public improvement bonds and notes, including premium thereon, if any, for the North Carolina State Parks, as provided in this subdivision may be allocated to another State Park, provided the following conditions are met:
1. The Park project to which the original allocation was made has been completed.
2. The Park project receiving funds in sub‑sub‑subdivision 1. of this sub‑subdivision has experienced a cost overrun for which additional funds are required.
3. The Office of State Budget and Management will report any reallocations made under this subdivision to the Joint Legislative Oversight Committee on Capital Improvements."
NATIONAL GUARD PROJECTS
SECTION 36.7. Section 36.11(c) of S.L. 2013‑360 reads as rewritten:
"SECTION 36.11.(c) Where the actual costs are different from the estimated costs under subsection (a) of this section, the Adjutant General of the National Guard may adjust the allocations among projects as needed. However, State funds shall not be allocated to a project in excess of the maximum amount of State funds authorized to be allocated to the project under subsection (a) of this section. If any projects funded under subsection (a) of this section are delayed and the budgeted State funds cannot be used during the 2013‑2015 fiscal biennium, or if the projects funded under subsection (a) of this section are accomplished at a lower cost, the Department may use the resulting fund availability to fund any of the following:
(1) Future project feasibility studies.
(2) Survey, testing, and permitting.
(3) Planning and execution for reversion of facilities no longer in use.
(4) Repair, renovation, and expansion of an existing armory."
AUTHORIZE STATE AGENCIES TO UNDERTAKE SMALL REPAIRS AND RENOVATIONS PROJECTS WITH FUNDS AVAILABLE
SECTION 36.8. G.S. 143C‑8‑7 reads as rewritten:
"§ 143C‑8‑7. When a State agency may begin a capital improvement project.
(a) No State agency may expend funds for the construction or renovation of any capital improvement project except as needed to comply with this Article or otherwise authorized by the General Assembly. Funds that become available by gifts, excess patient receipts above those budgeted at the University of North Carolina Hospitals at Chapel Hill, federal or private grants, receipts becoming a part of special funds by act of the General Assembly, or any other funds available to a State agency or institution may be utilized for advanced planning through the working drawing phase of capital improvement projects, upon approval of the Director of the Budget.
(b) A State agency may undertake repairs and renovations projects so long as each project satisfies the following requirements:
(1) Total project costs do not exceed the informal project limit set by the State Building Commission.
(2) The project is one of the types set forth in G.S. 143C‑4‑3(b)(1) through (13), regardless of whether the relevant State facilities and related infrastructure are supported from the General Fund.
(3) The project is paid for with funds available to the agency.
(c) Projects undertaken pursuant to this section shall be reported to the Fiscal Research Division on a quarterly basis. A report under this subsection shall include information about all of the following for each project:
(1) The facility at which the project is being undertaken.
(2) The nature and scope of the project.
(3) The source of funds for the project.
(4) The category of projects set forth in G.S. 143C‑4‑3(b) that the project falls within."
DEFINE CAPITAL PROJECTS
SECTION 36.9. G.S. 143C‑1‑1(d)(5) reads as rewritten:
"(5) Capital improvement.
– A term that includes real property acquisition, new construction or
rehabilitation of existing facilities, and repairs and renovations.renovations
over one hundred thousand dollars ($100,000) in value."
REPEAL STATE CAPITAL AND INFRASTRUCTURE FUND
SECTION 36.10. Section 36.12 of S.L. 2017‑57 is repealed.
ELIMINATE NON‑STATE FUNDED ADVANCE PLANNING REQUIREMENT BEFORE REQUESTING LEGISLATIVE SUPPORTS
SECTION 36.11. G.S. 143C‑3‑3(b)(2) is repealed.
ALLOCATION OF NET PROCEEDS FROM WAKE COUNTY PROPERTY DISPOSITIONS
SECTION 36.12. Article 7 of Chapter 146 of the General Statutes is amended by adding a new section to read:
"§ 146‑30.2. Application of net proceeds from disposition of property allocated to the department of administration in Wake County.
(a) Limitation. – Notwithstanding G.S. 146‑30 or any other provision of law, and subject to the limitations contained in any applicable deed, the net proceeds of any disposition of, use of, or activity on real property located in Wake County and allocated to the Department of Administration shall be used solely to repair and renovate real property located in Wake County and allocated to the Department of Administration. These funds shall only be used to fund projects listed in G.S. 143C‑4‑3(b), subject to the approval of the Director of the Budget.
(b) Definition of Net Proceeds. – For purposes of this section, the term "net proceeds" shall have the same meaning as in G.S. 146‑30.
(c) Appropriation. – Net proceeds received on or after July 1, 2017, are hereby appropriated for the uses contained in subsection (a) of this section.
(d) Report. – The Director of the Budget shall report annually on July 1 on projects funded under this section to the Joint Legislative Oversight Committee on Capital Improvements."
FOOD SERVICE WITHIN THE CAPITOL COMPLEX
SECTION 36.13.(a) Article 3 of Chapter 111 of the General Statutes is amended by adding a new section to read:
"§ 111‑47.4A. Food service within the Capitol Complex.
Notwithstanding any other provision of this Article, the Department of Health and Human Services may operate or contract for the operation of food or vending services at State property or State facilities allocated to the Department of Administration. The net proceeds of revenue generated by food and vending services at the State property or State facilities by the agency or a vendor with whom the agency has contracted with shall be credited to the Division of Services for the Blind of the Department and Health and Human Services for the purposes specified in G.S. 111‑43. Nothing in this section shall be construed to remove an exemption granted under State law for State property or State buildings, as defined in G.S. 111‑42(c)."
SECTION 36.13.(b) G.S. 66‑58(c)(4) reads as rewritten:
"(4) The operation of lunch
counters by the Department of Health and Human Services as blind enterprises of
the type operated on January 1, 1951 in State buildings in the City of Raleigh.food
and vending services pursuant to Article 3 of Chapter 111 of the General
Statutes."
SECTION 36.13.(c) G.S. 146‑29.1 is amended by adding a new subsection to read:
"(i) This section shall not apply to leases entered into by the Department of Health and Human Services for food and vending services pursuant to Article 3 of Chapter 111 of the General Statutes."
REPAIR, MAINTENANCE, AND SELF‑CONSTRUCTION TO STATE PROPERTY
SECTION 36.14.(a) Article 8 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑135.10. Repair, maintenance, and self‑construction to State property.
Notwithstanding any other provision of law, an employee of a State agency or institution may perform work involving the installation, construction, maintenance, or repair of any buildings, wiring, piping, devices, appliances, or equipment located in or constituting improvements located on State‑owned land without the requirement of licensure under Chapter 87 of the General Statutes if the work is performed by an employee who is employed by the State agency or institution and either the work performed is valued at less than one hundred thousand dollars ($100,000), or all work is performed as force‑account work otherwise authorized by law up to the value authorized. The Office of State Construction may regulate work performed pursuant to this section to ensure compliance with building and safety codes. Nothing in this section shall be construed to allow an employee of a State agency or institution to engage in any activities described in this section privately or outside the employee's scope of employment without meeting all licensure requirements otherwise required by law."
SECTION 36.14.(b) Section 36.15 of S.L. 2015‑360 is repealed.
TWO‑THIRDS BONDS ACT OF 2018
SECTION 36.15.(a) Short Title. – This section may be cited as the "Two‑Thirds Bonds Act of 2018."
SECTION 36.15.(b) Findings and Determinations. – It is the intent and purpose of the General Assembly by this section to provide for the issuance of general obligation bonds or notes of the State in order to provide funds for the cost of State capital facilities.
SECTION 36.15.(c) Definitions. – The following definitions apply in this section, unless the context otherwise requires:
(1) Bonds. – Bonds issued under this section.
(2) Cost. – The term includes all of the following:
a. The cost of constructing, reconstructing, renovating, repairing, enlarging, acquiring, and improving State capital facilities, including the acquisition of land, rights‑of‑way, easements, franchises, equipment, machinery, furnishings, and other interests in real or personal property acquired or used in connection with a State capital facility.
b. The cost of engineering, architectural, and other consulting services as may be required.
c. Administrative expenses and charges.
d. The cost of providing personnel to ensure effective project management.
e. The cost of bond insurance, investment contracts, credit enhancement and liquidity facilities, interest‑rate swap agreements or other derivative products, financial and legal consultants, and related costs of bond and note issuance, to the extent and as determined by the State Treasurer.
f. Finance charges, reserves for debt service, and other types of reserves required pursuant to the terms of any bond or note or related documents, interest before and during construction or acquisition of a State capital facility and, if considered advisable by the State Treasurer, for a period not exceeding two years after the estimated date of completion of construction or acquisition.
g. The cost of bond insurance, investment contracts, credit enhancement facilities and liquidity facilities, interest‑rate swap agreements or other derivative products, financial and legal consultants, and related costs of the incurrence or issuance of any bond or note.
h. The cost of reimbursing the State for any payments made for any cost described in this subdivision.
i. Any other costs and expenses necessary or incidental to the purposes of this section.
(3) Credit facility. – An agreement entered into by the State Treasurer on behalf of the State with a bank, savings and loan association, or other banking institution, an insurance company, reinsurance company, surety company or other insurance institution, a corporation, investment banking firm, or other investment institution, or any financial institution or other similar provider of a credit facility, which provider may be located within or without the United States, such agreement providing for prompt payment of all or any part of the principal or purchase price (whether at maturity, presentment or tender for purchase, redemption, or acceleration), redemption premium, if any, and interest on any bonds or notes payable on demand or tender by the owner, in consideration of the State agreeing to repay the provider of the credit facility in accordance with the terms and provisions of such agreement.
(4) Notes. – Notes issued under this section.
(5) Par formula. – A provision or formula adopted by the State to provide for the adjustment, from time to time, of the interest rate or rates borne by any bonds or notes, including the following:
a. A provision providing for such adjustment so that the purchase price of such bonds or notes in the open market would be as close to par as possible.
b. A provision providing for such adjustment based upon a percentage or percentages of a prime rate or base rate, which percentage or percentages may vary or be applied for different periods of time.
c. Such other provision as the State Treasurer may determine to be consistent with this act and will not materially and adversely affect the financial position of the State and the marketing of bonds or notes at a reasonable interest cost to the State.
(6) State. – The State of North Carolina, including any State agency.
(7) State agency. – Any agency, institution, board, commission, bureau, council, department, division, officer, or employee of the State. The term does not include counties, municipal corporations, political subdivisions, local boards of education, or other local public bodies.
SECTION 36.15.(d) Authorization of Bonds and Notes. – The State Treasurer is authorized by, and with the consent of the Council of State, to issue and sell at one time or from time to time, general obligation bonds of the State to be designated "State of North Carolina General Obligation Bonds," with any additional designations as may be determined, or notes of the State, in the aggregate principal amount of up to eighty million eight hundred forty‑two thousand dollars ($80,842,000), this amount being not in excess of two‑thirds of the amount by which the State's outstanding indebtedness was reduced during the fiscal biennium that ended June 30, 2017, for the purpose of providing funds, with any other available funds, for the purposes authorized by this section.
SECTION 36.15.(e) Uses of Bond and Note Proceeds. – The proceeds of bonds and notes shall be used for financing the cost of State capital facilities as provided in this section. Any additional moneys which may be received by grant from the United States of America or any agency or department thereof or from any other source to aid in financing the cost of any State capital facilities authorized by this section may be placed by the State Treasurer in a separate fund or funds and shall be disbursed, to the extent permitted by the terms of the grant, without regard to any limitations imposed by this section.
The proceeds of bonds and notes may be used with any other moneys made available by the General Assembly for the cost of State capital facilities, including the proceeds of any other State bond or special indebtedness issues, whether heretofore made available or which may be made available at the session of the General Assembly at which this section is ratified or any subsequent sessions. The proceeds of bonds and notes shall be expended and disbursed under the direction and supervision of the Director of the Budget. The funds provided by this section shall be disbursed for the purposes provided in this section upon warrants drawn on the State Treasurer by the State Controller, which warrants shall not be drawn until requisition has been approved by the Director of the Budget and which requisition shall be approved only after full compliance with the State Budget Act, Chapter 143C of the General Statutes.
The Office of State Budget and Management shall provide semiannual reports to the chairs of the Senate Appropriations Committees and the House Appropriations Subcommittees and to the Fiscal Research Division on the expenditure of moneys authorized by this section. The reports shall continue until the completion of the projects provided for in this section.
SECTION 36.15.(f) Allocation of Proceeds. – The proceeds of bonds and notes shall be allocated and expended as follows:
(1) A maximum aggregate principal amount of thirteen million dollars ($13,000,000) to finance the capital facility costs of completing the Veterinary/Food/Drug/Motor Fuels Lab.
(2) A maximum aggregate principal amount of seventeen million two hundred sixty‑three thousand dollars ($17,263,000) for completing the Austrailasia exhibit complex.
(3) A maximum aggregate principal amount of four million three hundred sixty‑nine thousand dollars ($4,369,000) to finance the capital facility costs of a Department of Public Safety Samarcand Training Facility.
(4) A maximum aggregate principal amount of fourteen million four hundred twenty‑three thousand dollars ($14,423,000) to finance the capital facility costs of completing three National Guard Readiness Centers in Burke and Wilkes Counties.
(5) A maximum aggregate principal amount of seven million one hundred eighty‑seven thousand dollars ($7,187,000) to finance the capital facility costs of completing a new Youth Development Center in Rockingham County.
(6) A maximum aggregate principal amount of eight million six hundred thousand dollars ($8,600,000) to finance the capital facility costs of completing the New School of Business at North Carolina Central University.
(7) A maximum aggregate principal amount of ten million dollars ($10,000,000) to finance the capital facility costs of completing the North Carolina School of Technology and Engineering.
(8) A maximum aggregate principal amount of six million dollars ($6,000,000) to finance the capital facility costs of completing the University of North Carolina Pembroke New School of Business.
SECTION 36.15.(g) Variable Rate Demand Bonds and Notes. – In fixing the details of bonds and notes, the State Treasurer may provide that any of the bonds or notes may:
(1) Be made payable from time to time on demand or tender for purchase by the owner, if a credit facility supports the bonds or notes, unless the State Treasurer specifically determines that a credit facility is not required upon a finding and determination by the State Treasurer that the absence of a credit facility will not materially and adversely affect the financial position of the State and the marketing of the bonds or notes at a reasonable interest cost to the State.
(2) Be additionally supported by a credit facility.
(3) Be made subject to redemption or a mandatory tender for purchase prior to maturity.
(4) Bear interest at a rate or rates that may vary for any period of time, as may be provided in the proceedings providing for the issuance of the bonds or notes, including, without limitation, such variations as may be permitted pursuant to a par formula.
(5) Be made the subject of a remarketing agreement whereby an attempt is made to remarket bonds or notes to new purchasers prior to their presentment for payment to the provider of the credit facility or to the State.
If the aggregate principal amount payable by the State under a credit facility is in excess of the aggregate principal amount of bonds or notes secured by the credit facility, whether as a result of the inclusion in the credit facility of a provision for the payment of interest for a limited period of time or the payment of a redemption premium or for any other reason, then the amount of authorized but unissued bonds or notes during the term of such credit facility shall not be less than the amount of such excess, unless the payment of such excess is otherwise provided for by agreement of the State executed by the State Treasurer.
SECTION 36.15.(h) Issuance of Bonds and Notes. –
(1) Terms and conditions. – Bonds or notes may bear a date or dates, may be serial or term bonds or notes, or any combination thereof, may mature in such amounts and at such time or times, not exceeding 40 years from their date or dates, may be payable at such place or places, either within or without the United States of America, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, may bear interest at such rate or rates, which may vary from time to time, and may be made redeemable before maturity, at the option of the State or otherwise as may be provided by the State, at such price or prices, including a price less than or greater than the face amount of the bonds or notes, and under such terms and conditions, all as may be determined by the State Treasurer, by and with the consent of the Council of State.
(2) Signatures; form and denomination; registration. – Bonds or notes may be issued in certificated or uncertificated form. If issued in certificated form, bonds or notes shall be signed on behalf of the State by the Governor or shall bear the Governor's facsimile signature, shall be signed by the State Treasurer or shall bear the State Treasurer's facsimile signature, and shall bear the Great Seal of the State, or a facsimile of the Seal shall be impressed or imprinted thereon. If bonds or notes bear the facsimile signatures of the Governor and the State Treasurer, the bonds or notes shall also bear a manual signature which may be that of a bond registrar, trustee, paying agent, or designated assistant of the State Treasurer. Should any officer whose signature or facsimile signature appears on bonds or notes cease to be such officer before the delivery of the bonds or notes, the signature or facsimile signature shall nevertheless have the same validity for all purposes as if the officer had remained in office until delivery. Bonds or notes may bear the facsimile signatures of persons, who at the actual time of the execution of the bonds or notes shall be the proper officers to sign any bond or note, although at the date of the bond or note such persons may not have been such officers. The form and denomination of bonds or notes, including the provisions with respect to registration of the bonds or notes and any system for their registration, shall be as the State Treasurer may determine in conformity with this section.
(3) Manner of sale; expenses. – Subject to the approval by the Council of State as to the manner in which bonds or notes shall be offered for sale, whether at public or private sale, whether within or without the United States, and whether by publishing notices in certain newspapers and financial journals, mailing notices, inviting bids by correspondence, negotiating contracts of purchase, or otherwise, the State Treasurer is authorized to sell bonds or notes at one time or from time to time at any rates of interest, which may vary from time to time, and at any prices, including a price less than or greater than the face amount of the bonds or notes, as the State Treasurer may determine. All expenses incurred in the preparation, sale, and issuance of bonds or notes shall be paid by the State Treasurer from the proceeds of bonds or notes or other available moneys.
(4) Notes; repayment. –
a. By and with the consent of the Council of State, the State Treasurer is hereby authorized to borrow money and to execute and issue notes of the State for the same, but only in the following circumstances and under the following conditions:
1. For anticipating the sale of bonds, the issuance of which the Council of State has approved, if the State Treasurer considers it advisable to postpone the issuance of the bonds.
2. For the payment of interest on or any installment of principal of any bonds then outstanding, if there are not sufficient funds in the State treasury with which to pay the interest or installment of principal as they respectively become due.
3. For the renewal of any loan evidenced by notes authorized in this section.
4. For the purposes authorized in this section.
5. For refunding bonds or notes as authorized in this section.
b. Funds derived from the sale of bonds or notes may be used in the payment of any bond anticipation notes issued under this section. Funds provided by the General Assembly for the payment of interest on or principal of bonds shall be used in paying the interest on or principal of any notes and any renewals thereof, the proceeds of which shall have been used in paying interest on or principal of the bonds.
(5) Refunding bonds and notes. – By and with the consent of the Council of State, the State Treasurer is authorized to issue and sell refunding bonds and notes pursuant to the provisions of the State Refunding Bond Act for the purpose of refunding bonds or notes issued pursuant to this section. The refunding bonds and notes may be combined with any other issues of State bonds and notes similarly secured. Refunding bonds or notes may be issued at any time prior to the final maturity of the debt obligation to be refunded. The proceeds from the sale of any refunding bonds or notes shall be applied to the immediate payment and retirement of the bonds or notes being refunded or, if not required for the immediate payment of the bonds or notes being refunded, the proceeds shall be deposited in trust to provide for the payment and retirement of the bonds or notes being refunded and to pay any expenses incurred in connection with the refunding. Money in a trust fund may be invested in (i) direct obligations of the United States government, (ii) obligations the principal of and interest on which are guaranteed by the United States government, (iii) obligations of any agency or instrumentality of the United States government if the timely payment of principal and interest on the obligations is unconditionally guaranteed by the United States government, or (iv) certificates of deposit issued by a bank or trust company located in the State if the certificates are secured by a pledge of any of the obligations described in (i), (ii), or (iii) above having an aggregate market value, exclusive of accrued interest, equal at least to the principal amount of the certificates so secured. This section does not limit the duration of any deposit in trust for the retirement of bonds or notes being refunded but that have not matured and are not presently redeemable, or if presently redeemable, have not been called for redemption.
(6) Tax exemption. – Bonds and notes shall at all times be free from taxation by the State or any political subdivision or any of their agencies, excepting estate, inheritance, or gift taxes, income taxes on the gain from the transfer of bonds or notes, and franchise taxes. The interest on bonds or notes is not subject to taxation as income.
(7) Investment eligibility. – Bonds and notes are securities in which all of the following may invest, including capital in their control or belonging to them: public officers, agencies, and public bodies of the State and its political subdivisions, all insurance companies, trust companies, investment companies, banks, savings banks, savings and loan associations, credit unions, pension or retirement funds, other financial institutions engaged in business in the State, executors, administrators, trustees, and other fiduciaries. Bonds and notes are hereby made securities which may properly and legally be deposited with and received by any officer or agency of the State or political subdivision of the State for any purpose for which the deposit of bonds, notes, or obligations of the State or any political subdivision is now or may hereafter be authorized by law.
(8) Faith and credit. – The faith and credit and taxing power of the State are hereby pledged for the payment of the principal of and the interest on bonds and notes. The State expressly reserves the right to amend any provision of this section to the extent it does not impair any contractual right of a bond owner.
(9) Other agreements. – The State Treasurer may authorize, execute, obtain, or otherwise provide for bond insurance, investment contracts, credit and liquidity facilities, interest‑rate swap agreements and other derivative products, and any other related instruments and matters the State Treasurer determines are desirable in connection with issuance, incurrence, carrying, or securing of bonds or notes. The State Treasurer is authorized to employ and designate any financial consultants, underwriters, and bond attorneys to be associated with any bond or note issue under this section as the State Treasurer considers necessary.
SECTION 36.15.(i) Interpretation of Section. –
(1) Additional method. – The foregoing subsections of this section shall be deemed to provide an additional and alternative method for the doing of the things authorized under it and shall be regarded as supplemental and additional to powers conferred by other laws and shall not be regarded as in derogation of any powers now existing.
(2) Statutory references. – References in this section to specific sections or Chapters of the General Statutes or to specific acts are intended to be references to such sections, Chapters, or acts as they may be amended from time to time by the General Assembly.
(3) Broad construction. – This section, being necessary for the health and welfare of the people of the State, shall be broadly construed to effect the purposes thereof.
(4) Inconsistent provisions. – Insofar as the provisions of this section are inconsistent with the provisions of any general, special, or local laws, or parts thereof, the provisions of this section shall be controlling.
(5) Severability. – If any provision of this section or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the section which can be given effect without the invalid provision or application, and, to this end, the provisions of this section are declared to be severable.
SECTION 36.15.(j) This section is effective when it becomes law.
PART XXXVII. DEPARTMENT OF INFORMATION TECHNOLOGY
INFORMATION TECHNOLOGY INTERNAL SERVICE FUND/RATES
SECTION 37.1. Section 37.5(a) of S.L. 2017‑57 reads as rewritten:
"SECTION 37.5.(a) During the 2017‑2019 fiscal biennium:
(1) Information Technology Internal Service Fund receipts for the 2017‑2018 fiscal year shall not exceed two hundred five million dollars ($205,000,000).
(2) Information Technology
Internal Service Fund receipts for the 2018‑2019 fiscal year shall not
exceed two hundred five million dollars ($205,000,000).be based on
projected receipts as calculated in subsection (c) of this section.
(3) Receipts for the Internal Service Fund shall also include the total receipts for existing services transferred from the following participating agencies to the Department of Information Technology under the State agency information technology consolidation:
a. Department of Administration.
b. Department of Environmental Quality.
c. Department of Military and Veterans Affairs.
d. Department of Transportation.
e. Office of State Budget and Management.
f. Office of State Human Resources.
(4) Receipts for the Internal Service Fund shall include receipts for any existing services transferred to the Department of Information Technology under the State agency information technology consolidation during the 2018‑2019 fiscal year.
Rates approved by the Office of State Budget and Management during the 2017‑2019 fiscal biennium to support the Information Technology Internal Service Fund shall be based on the fund limit set in this section.
Information Technology Internal Service Fund receipts may be increased for specific purposes only after consultation with the Joint Legislative Commission on Governmental Operations each time a requirement necessitating an increase is identified."
SECTION 37.2. G.S. 143B‑1333(a) reads as rewritten:
"(a) The Internal Service
Fund is established within the Department as a fund to provide goods and
services to State agencies on a cost‑recovery basis. The Department shall
establish fees for subscriptions and chargebacks for consumption‑based
services. The Information Technology Strategic Sourcing Office shall be funded through a combination of
administrative fees as part of the IT Supplemental Staffing contract, as well
as fees charged to agencies using their services. For each fiscal biennium,
the State CIO shall establish and annually update consistent, fully
transparent, easily understandable fees and rates that reflect industry
standards for any good or service for which an agency is charged. These fees
and rates shall be prepared by October 1 of each even‑numbered year and
shall be approved by the Office of State Budget and Management. The These
rates shall remain in effect for the fiscal biennium and the Office of
State Budget and Management shall ensure that State agencies have the
opportunity to adjust their budgets based on any rate or fee changes prior to
submission of those budget recommendations to the General Assembly. Reductions
in rates may be made by the State CIO at any time upon consultation with the
Office of State Budget and Management. Rates for new services may be approved
by the Office of State Budget and Management if funds are available and deemed
in the best interest of the State. The approved Information Technology
Internal Service Fund budget and associated rates shall be included in the
Governor's budget recommendations to the General Assembly."
RESERVE FOR ENTERPRISE RESOURCE PLANNING SOLUTIONS
SECTION 37.3. Creation and Source of Funds. – The Reserve for Enterprise Resource Planning (ERP) Solutions is established at the Office of State Budget and Management (OSBM) as a special fund.
SECTION 37.4. Of the amount in the Reserve for Enterprise Resource Planning Solutions, the funds shall be allocated in the following manner:
(1) The sum of twenty‑seven million dollars ($27,000,000) shall be allocated to the Department of Information Technology for development of a consolidated statewide ERP bringing the total amount allocated to forty million dollars ($40,000,000).
(2) The sum of twenty three million dollars ($23,000,000) shall be allocated to the North Carolina Community College System for the planning and implementation of a modernized ERP for the State's 58 community colleges.
a. The North Carolina Community College System shall use these funds to (i) ensure that all community colleges have the capacity to access and operate a cloud‑based ERP system, (ii) promote industry utilization and student enhancement of "career credit" opportunities that build and strengthen North Carolina's workforce, and (iii) design a replacement for the human resources and payroll systems used by all 58 community colleges.
b. Funds allocated under sub‑subdivision a. of this subdivision to enhance capacity at rural colleges shall be used to upgrade equipment and connectivity at these colleges. Funds shall not be used to renovate or construct new facilities.
SECTION 37.5. Use of Funds. – The funds in the Reserve for Enterprise Resource Planning shall only be used for approved ERP projects. OSBM shall release funding as required upon consultation with the respective agency and the State CIO.
SECTION 37.6. On or before January 1 of each year, each entity receiving funds in Section 37.4 of this act shall report to the Joint Legislative Committee on Information Technology and the Fiscal Research Division. The report shall contain the following:
(1) Status of the ERP project regarding time line and spending.
(2) Status of contract awards.
(3) Status of any outstanding requests for proposal.
(4) Total cost of each awarded contract.
The North Carolina Community College System shall report by March 1, 2019, and semi‑annually thereafter, on the expenditures of all funds related to their ERP to the Joint Legislative Education Oversight Committee.
GRANT TO ENHANCE BROADBAND ACCESS IN UNSERVED AREAS
Funds appropriated in this act for the implementation of the grant program shall be allocated in the following manner:
(1) Seventeen million five hundred thousand dollars ($17,500,000) to establish broadband deployment grants for the purpose of promoting the deployment and adoption of broadband Internet access services.
(2) Grants must be awarded to promote the deployment and adoption of broadband infrastructure and services with minimum download speeds of 10 Megabits per second (10Mbps) and a minimum of upload speeds of one Megabit per second (1Mbps) to locations without broadband services at these minimum speeds.
(3) Grants must be awarded pursuant to criteria developed by the Department of Information Technology, Broadband Infrastructure Office, with priority given to projects that:
a. Serve locations not receiving a minimum download and upload speed of 10Mbps/1Mbps;
b. Propose to install infrastructure that supports broadband services scalable to higher download and upload speeds;
c. Have not received funds or have not been designated to receive funds through other State or federal grant programs designed for broadband deployment or expansion to locations without broadband services at a minimum download and upload speed of 10Mbps/1Mbps;
d. Shall provide higher download and upload speeds to locations than the minimum threshold referenced herein;
e. Serve locations with demonstrated community support and documented support from the political subdivision being served; and
f. Provide an affordable service offering for qualifying low‑income households.
(4) Funds may reimburse investments in infrastructure, equipment, construction costs, or other investments required to deliver last‑mile service to unserved areas, for wired or fixed wireless broadband technologies.
Of the funds appropriated, no more than two percent (2%) may be used to support the planning, administration, and management of the broadband grant program, including broadband coverage data verification.
(1) The amount of the grant allocation.
(2) Number of households impacted.
(3) Number of businesses impacted.
(4) Cost or cost range of services.
(5) Number of jobs created or affected by broadband installation projects.
(6) The installation project time period.
SECTION 37.9. On or before January 1 of each year, the Broadband Infrastructure Office shall report to the Joint Legislative Committee on Information Technology and the Fiscal Research Division. The report shall contain the following:
(1) Status of the Broadband Grant Program.
(2) Status of grant awards.
(3) The impact of the Broadband Grant Program on specific communities.
SECTION 37.10. The Department of Information Technology, in consultation with the Department of Public Instruction, is authorized to establish and administer a pilot Homework Gap Grants program for the purpose of providing Internet access to students who do not have, or who cannot afford, home Internet service. The Department of Information Technology's Broadband Infrastructure Office shall work with the Department of Public Instruction to initiate a one‑year pilot grant program that will serve as the foundation for a long‑term solution for students who lack broadband service. Grants shall be provided to Local Education Agencies for the purchase of equipment and services for individual student use, and to provide WiFi on school buses.
Funds appropriated in this act for the implementation of the grant program shall be allocated in the following manner:
(1) Two million dollars ($2,000,000) to establish grants to Local Education Agencies for the purchase of mobile hotspot devices, service for the hotspots, and equipment and mobile service to provide WiFi on school buses.
(2) One hundred twenty‑five thousand dollars ($125,000) to administer the grant program and conduct research on the size and scope of the homework gap.
(3) Two hundred fifty thousand dollars ($250,000) for a third‑party evaluation of the pilot year and progress made toward closing the homework gap.
(4) One hundred twenty‑five thousand dollars ($125,000) for mobile service testing to ensure mobile hotspot devices can provide adequate access for at‑home educational needs.
Upon approval of a Local Education Agency's grant request, funding will be transferred to the Department of Public Instruction for distribution.
SECTION 37.11. The Broadband Infrastructure Office shall develop a strategy to support the affordability of broadband service, including potential partnerships and private sources of funding to support the effort. The Department of Information Technology shall negotiate with wireless providers to lower monthly subscription rates for mobile hotspots and establish convenience contracts where Local Education Agencies shall purchase equipment and services.
SECTION 37.12. The Broadband Infrastructure Office, in consultation with the Department of Public Instruction, shall establish qualifying grant criteria that includes a district‑wide survey measuring the homework gap and demonstrated progress toward the NC Digital Learning Plan. Implementation should begin no later than the 2019‑2020 school year.
SECTION 37.13. The Broadband Infrastructure Office shall collect data on the impact of the Homework Grants program. Specific data shall include the following:
(1) Number of students impacted.
(2) Number of buses equipped.
(3) Cost or cost range of services.
SECTION 37.14. On or before March 1, 2019, the Broadband Infrastructure Office shall submit a report to the Joint Legislative Committee on Information Technology and the Joint Legislative Committee on Education. The report shall contain at least the following:
(1) Status of the Homework Gap Grants Program.
(2) Number and amounts of grants awarded.
(3) Number of students impacted.
SECTION 37.15. On or before March 1, 2020, the State CIO, in conjunction with the Department of Public Instruction and the third‑party evaluator, shall prepare a plan to bridge the homework gap that includes the following:
(1) Information regarding the size and scope of the homework gap throughout the State.
(2) A strategy to provide affordable broadband access for students falling within the homework gap, including the exploration of additional outside sources of funding to support the effort.
(3) Analysis of means, methods, and best practices to achieve statewide universal access for students.
BROADBAND SERVICE DEFINITION
SECTION 37.16. G.S. 62‑3 reads as rewritten:
"§ 62‑3. Definitions.
As used in this Chapter, unless the context otherwise requires, the term:
(1) "Broadband
service" means any service that consists of or includes a high‑speed
access capability to transmit at a rate of not less than 200 kilobits per
second in either the upstream or downstream direction the current
threshold for broadband service established by the Federal Communications
Commission and either (i) is used to provide access to the Internet, or
(ii) provides computer processing, information storage, information content, or
protocol conversion, including any service applications or information service
provided over such high‑speed access service. "Broadband
service" does not include intrastate service that was tariffed by the
Commission and in effect as of the effective date of this subdivision.
…."
AUTHORIZATION TO PROVIDE GRANTS
SECTION 37.17. G.S. 153A‑349.60 reads as rewritten:
"§ 153A‑349.60. Authorization to provide grants.
(a) A county may provide
grants to unaffiliated qualified private providers of highspeed Internet access
service, as that term is defined in G.S. 160A‑340(4), for the
purpose of expanding service in unserved areas for economic development in
the county. The grants shall be awarded on a technology neutral basis, shall be
open to qualified applicants, and may require matching funds by the private
provider. A county shall seek and consider request for proposals from qualified
private providers within the county prior to awarding a broadband grant and
shall use reasonable means to ensure that potential applicants are made aware
of the grant, including, at a minimum, compliance with the notice procedures
set forth in G.S. 160A‑340.6(c). The county shall use only
unrestricted general fund revenue or State or federal grants or loans for
the grants. For the purposes of this section, a qualified private provider is a
private provider of high‑speed Internet access service in the State prior
to the issuance of the grant proposal.
…."
SECURITY COST ESTIMATION REPORTING CHANGE
SECTION 37.18. G.S. 143B‑1378 reads as rewritten:
"§ 143B‑1378. Assessment of agency compliance with security standards.
At a minimum, the State CIO shall
annually assess the ability of each State agency, and each agency's contracted
vendors, to comply with the current security enterprise‑wide set of
standards established pursuant to this section. The assessment shall include,
at a minimum, the rate of compliance with the enterprise‑wide security
standards and an assessment of security organization, security practices,
security information standards, network security architecture, and current
expenditures of State funds for information technology security. The assessment
of a State agency shall also estimate the initial cost to implement the
security measures needed for agencies to fully comply with the standards.standards,
as well as the costs over the lifecycle of the State agency information system.
Each State agency shall submit information required by the State CIO for
purposes of this assessment. The State CIO shall include the information
obtained from the assessment in the State Information Technology Plan."
PART XXXVIII. FINANCE PROVISIONS
PERSONAL INCOME TAX RATE BRACKETS
SECTION 38.1.(a) Section 38.1 of S.L. 2017‑57 is repealed.
SECTION 38.1.(b) G.S. 105‑153.7(a) reads as rewritten:
"(a) Tax. – A tax is
imposed for each taxable year on the North Carolina taxable income of every
individual. The tax shall be levied, collected, and paid annually. The tax is
five and four ninety-nine thousandths percent (5.499%) shall be computed
at the following percentages of the taxpayer's North Carolina taxable income.income:
Filing Status Taxable Income Tax Rate
Married, filing jointly Up to $200,000 5.25%
Over $200,000 5.499%
Head of Household Up to $150,000 5.25%
Over $150,000 5.499%
Single Up to $100,000 5.25%
Over $100,000 5.499%
Married, filing separately Up to $100,000 5.25%
Over $100,000 5.499%
Surviving Spouse Up to $200,000 5.25%
Over $200,000 5.499%."
SECTION 38.1.(c) This section is effective for taxable years beginning on or after January 1, 2019.
CORPORATE INCOME TAX RATE FREEZE
SECTION 38.2.(a) Section 38.5(b) of S.L. 2017‑57 is repealed.
SECTION 38.2.(b) Section 38.5(d) of S.L. 2017‑57 reads as rewritten:
"SECTION 38.5.(d)
Subsection (a) of this section is effective for taxable years beginning on or
after January 1, 2017. Subsection (b) of this section is effective for
taxable years beginning on or after January 1, 2019. The remainder of this
section is effective when this act becomes law."
TELEVISION AND FILM REBATE AND GRANT PROGRAMS
SECTION 38.3.(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).
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
million dollars ($5,000,000) for a feature-length film, more than nine million
dollars ($9,000,000) 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.per production.
(3) The funds are not used to provide a grant to more than one production company for a single production.
(4) The funds are not used to provide a grant for a production that meets one or more of the following:
a. It contains material that is "obscene," as defined in G.S. 14‑190.1, or that is "harmful to minors," as defined in G.S. 14‑190.13.
b. It has the primary purpose of political
advertising, fundraising, or marketing, other than by commercial, a product,
or service.
c. News programming, It
is a production of a news program, including weather, financial market, and
current events reporting.reports.
d. Live It is a
live sporting event programming, event, including pre‑event
and post‑event coverage and scripted sports entertainment. For purposes
of this exception, a live sporting event is a scheduled sporting competition,
game, or race that is originated solely by an amateur, collegiate, or
professional organization, institution, or association for live or tape‑delayed
television or satellite broadcast. The term does not include commercial
advertising, an episodic television series, a television pilot, a music video,
a motion picture, or a documentary production in which sporting events are
presented through archived historical footage or similar footage taken at least
30 days before it is used.
e. Radio productions.It
is a radio production.
f. It is a talk, game, or awards show or other gala event. For purposes of this exception, an awards show is television programming involving the filming of a ceremony in which individuals, groups, or organizations are given an award.
g. It fails to contain, in the end credits of the production, a statement that the production was "Filmed in North Carolina," a logo provided by the North Carolina Film Office, and an acknowledgement of the regional film office responsible for the geographic area in which the filming of the production occurred. Additionally, the production company will offer marketing opportunities to be evaluated by the North Carolina Film Office to ensure that they offer promotional value to the State.
(5) Priority for the use of funds shall be given to productions that are reasonably anticipated to maximize the benefit to the State, in consideration of at least the following factors:
a. Percentage of employees that are permanent residents in the State.
b. The extent to which the production features identifiable attractions or State locales in a manner that would be reasonably expected to induce visitation by nonresidents of the State to the attraction or locale.
c. The extent to which the production invests in permanent improvements to open public spaces, commercial districts, traditional downtown areas, public landmarks, residential areas, or similar properties or areas.
d. The extent to which the production will be filmed in an economically distressed county or area of the State.
e. The duration of production activities in the State.
…."
"§ 105‑130.47. Credit Film and
Entertainment Rebate Program for qualifying expenses of a production
company.
(a) Definitions. – The following definitions apply in this section:
(1) Awards show. – An awards show is television programming involving the filming of a ceremony in which individuals, groups, or organizations are given an award.
(2) Employee. – A person who is employed for consideration and whose wages are subject to withholding tax under Article 4A of Chapter 105 of the General Statutes.
(3) Highly compensated individual. – An individual who directly or indirectly receives compensation in excess of one million dollars ($1,000,000) for personal services with respect to a single production. An individual receives compensation indirectly when a production company pays a personal service company or an employee leasing company that pays the individual.
(2)(4) Live sporting
event. – A scheduled sporting competition, game, or race that is not originated
by a production company, but originated solely by an amateur, collegiate, or
professional organization, institution, or association for live or tape‑delayed
television or satellite broadcast. A live sporting event does not include
commercial advertising, an episodic television series, a television pilot, a
music video, a motion picture, or a documentary production in which sporting
events are presented through archived historical footage or similar footage
taken at least 30 days before it is used.
(5) Loan‑out company. – A personal service corporation that employs an individual who is hired by a film or digital media production company.
(6) Production. – Any of the following:
a. A motion picture intended for commercial distribution to a motion picture theater or directly to the consumer viewing market that has a running time of at least 75 minutes.
b. A television series for theatrical or television viewing, made‑for‑television movie, or production intended for online distribution. For video and television series, one production is all of the episodes of the series produced for a single season.
(3)(7) Production
company. – Defined in G.S. 105‑164.3.
(4)(8) Qualifying
expenses. – The sum of the following amounts spent in this State by a
production company in connection with a production, less the amount in excess
of one million dollars ($1,000,000) paid to a highly compensated individual:
a. Goods and services leased or purchased. For goods with a purchase price of twenty‑five thousand dollars ($25,000) or more, the amount included in qualifying expenses is the purchase price less the fair market value of the good at the time the production is completed. Goods and services includes the costs of tangible and intangible property used for, and services performed primarily and customarily in, production, including preproduction and postproduction and other direct costs of producing the project in accordance with generally accepted entertainment industry practices. Goods and services exclude costs for development, marketing, and distribution; costs of financing for the production, of bonding related to the production, of production‑related insurance coverage obtained on the production; and expenses for insurance coverage purchased from a related member.
b. Compensation and wages on which withholding payments are remitted to the Department of Revenue under Article 4A of this Chapter. Payments made to a loan‑out company for services provided in North Carolina shall be subject to gross income withholding tax at the applicable rate under the Article 4 of this Chapter.
c. The cost of production‑related insurance
coverage obtained on the production. Expenses for insurance coverage purchased
from a related member are not qualifying expenses.
d. Employee fringe contributions, including health, pension, and welfare contributions.
e. Per diems, stipends, and living allowances paid for work being performed in this State.
(5)(9) Related member.
– Defined in G.S. 105‑130.7A.
(b) Credit. – A taxpayer
that is a production company and has qualifying expenses of at least two
hundred fifty thousand dollars ($250,000) one million dollars
($1,000,000) with respect to a production is allowed a credit against the
taxes imposed by this Part equal to twenty‑five percent (25%) of the
production company's qualifying expenses. For the purposes of this section,
in the case of an episodic television series, an entire season of episodes is
one production. The credit is computed based on all of the taxpayer's
qualifying expenses incurred with respect to the production, not just the
qualifying expenses incurred during the taxable year.
(b1) Repealed by Session Laws 2009‑529, s. 1, effective January 1, 2011.
(c) Pass‑Through Entity. – Notwithstanding the provisions of G.S. 105‑131.8 and G.S. 105‑269.15, a pass‑through entity that qualifies for a credit provided in this section does not distribute the credit among any of its owners. The pass‑through entity is considered the taxpayer for purposes of claiming a credit allowed by this section. If a return filed by a pass‑through entity indicates that the entity is paying tax on behalf of the owners of the entity, a credit allowed under this section does not affect the entity's payment of tax on behalf of its owners.
(d) Return. – A taxpayer may
claim a credit allowed by this section on a return filed for the taxable year
in which the production activities are completed. The return must state the name
of the production, and the taxpayer must provide a description of the production,
production and a detailed accounting of the qualifying expenses with
respect to which a credit is claimed. The qualifying expenses are subject to
audit by the Secretary before the credit is allowed.
(e) Credit Refundable. – If a credit allowed by this section exceeds the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary must refund the excess to the taxpayer. The refundable excess is governed by the provisions governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In computing the amount of tax against which multiple credits are allowed, nonrefundable credits are subtracted before refundable credits.
(f) Limitations. – The
amount of credit allowed under this section with respect to a per production
that is a feature film may not exceed twenty million dollars ($20,000,000).shall
not exceed the following amounts:
(1) For a feature‑length film, five million dollars ($5,000,000).
(2) For a television series, fifteen million dollars ($15,000,000) per season.
No credit is allowed under this section for any production that satisfies one or more of the following conditions:
(1) It is has the
primary purpose of political advertising.advertising, fund‑raising,
or marketing a product or service.
(2) It is a television production
of a news program or live sporting event.program, including weather,
financial market, and current events reports.
(3) It is a live sporting event, including pre‑event and post‑event coverage and scripted sports entertainment.
(4) It is a talk, game, or awards show or other gala event.
(5) It contains material that is obscene, "obscene," as defined in G.S. 14‑190.1.G.S. 14‑190.1,
or that is "harmful to minors," as defined in G.S. 14‑190.13.
(4)(6) It is a radio
production.
(7) It fails to contain in the end credits of the production a statement that the production was "Filmed in North Carolina," a logo provided by the North Carolina Film Office, and an acknowledgement of the regional film office responsible for the geographic area in which the filming of the production occurred. Additionally, the production company will offer marketing opportunities to be evaluated by the North Carolina Film Office to ensure that they offer promotional value to the State.
(8) It has received a grant from the Film and Entertainment Grant Fund set out in G.S. 143B‑437.02A.
(g) Substantiation. – A
taxpayer allowed a credit under this section must maintain and make available
for inspection any information or records required by the Secretary of Revenue.
The taxpayer has the burden of proving eligibility for a credit and the amount
of the credit. The Secretary may consult with the North Carolina Film Office of
the Department of Commerce within the Economic Development Partnership
of North Carolina and the regional film commissions in order to determine
the amount of qualifying expenses.
(h) Report. – The Department must include in the economic incentives report required by G.S. 105‑256 the following information, itemized by taxpayer:
(1) The location of sites used in a production for which a credit was taken.
(2) The qualifying expenses for which a credit was taken, classified by whether the expenses were for goods, services, or compensation paid by the production company.
(3) The number of people employed in the State with respect to credits taken.
(4) The total cost to the General Fund of the credits taken.
(i) Repealed by Session Laws 2006‑220, s. 2, effective for taxable years beginning on or after January 1, 2007.
(j) NC Film Office. Notification.
– To claim a credit under this section, a taxpayer must notify the Department
of Commerce North Carolina Film Office within the Economic Development
Partnership of North Carolina of the taxpayer's intent to claim the
production tax credit. The notification must include the title of the
production, the name of the production company, a financial contact for the
production company, the proposed dates on which the production company plans to
begin filming the production, and any other information required by the
Department. For productions that have production credits, a taxpayer
claiming a credit under this section must acknowledge in the production credits
both the North Carolina Film Office and the regional film office responsible
for the geographic area in which the filming of the production occurred.
(k) Sunset. – This section
is repealed for qualifying expenses occurring on or after January 1, 2015.2022."
SECTION 38.3.(c) G.S. 105‑151.29 is reenacted as it existed immediately before it was repealed and reads as rewritten:
"§ 105‑151.29. Credit Film and
Entertainment Rebate Program for qualifying expenses of a production
company.
(a) Definitions. – The following definitions apply in this section:
(1) Awards show. – An awards show is television programming involving the filming of a ceremony in which individuals, groups, or organizations are given an award.
(2) Employee. – A person who is employed for consideration and whose wages are subject to withholding under Article 4A of Chapter 105 of the General Statutes.
(3) Highly compensated individual. – An individual who directly or indirectly receives compensation in excess of one million dollars ($1,000,000) for personal services with respect to a single production. An individual receives compensation indirectly when a production company pays a personal service company or an employee leasing company that pays the individual.
(2)(4) Live sporting
event. – A scheduled sporting competition, game, or race that is not originated
by a production company, but originated solely by an amateur, collegiate, or
professional organization, institution, or association for live or tape‑delayed
television or satellite broadcast. A live sporting event does not include
commercial advertising, an episodic television series, a television pilot, a
music video, a motion picture, or a documentary production in which sporting
events are presented through archived historical footage or similar footage
taken at least 30 days before it is used.
(5) Loan‑out company. – A personal service corporation that employs an individual who is hired by a film or digital media production company.
(6) Production. – Any of the following:
a. A motion picture intended for commercial distribution to a motion picture theater or directly to the consumer viewing market that has a running time of at least 75 minutes.
b. A television series for theatrical or television viewing, made‑for‑television movie, or production intended for online distribution. For video and television series, one production is all of the episodes of the series produced for a single season.
(3)(7) Production
company. – Defined in G.S. 105‑164.3.
(4)(8) Qualifying
expenses. – The sum of the following amounts spent in this State by a
production company in connection with a production, less the amount paid in
excess of one million dollars ($1,000,000) to a highly compensated individual:
a. Goods and services leased or purchased. For goods with a purchase price of twenty‑five thousand dollars ($25,000) or more, the amount included in qualifying expenses is the purchase price less the fair market value of the good at the time the production is completed. Goods and services includes the costs of tangible and intangible property used for, and services performed primarily and customarily in, production, including preproduction and postproduction and other direct costs of producing the project in accordance with generally accepted entertainment industry practices. Goods and services exclude costs for development, marketing, and distribution; costs of financing for the production, of bonding related to the production, of production‑related insurance coverage obtained on the production; and expenses for insurance coverage purchased from a related member.
b. Compensation and wages on which withholding payments are remitted to the Department of Revenue under Article 4A of this Chapter. Payments made to a loan‑out company for services provided in North Carolina shall be subject to gross income withholding tax at the applicable rate under the Article 4 of this Chapter.
c. The cost of production‑related insurance
coverage obtained on the production. Expenses for insurance coverage purchased
from a related member are not qualifying expenses.
d.c. Employee
fringe contributions, including health, pension, and welfare contributions.
e.d. Per diems,
stipends, and living allowances paid for work being performed in this State.
(5)(9) Related member.
– Defined in G.S. 105‑130.7A.
(b) Credit. – A taxpayer
that is a production company and has qualifying expenses of at least two
hundred fifty thousand dollars ($250,000) one million dollars
($1,000,000) with respect to a production is allowed a credit against the
taxes imposed by this Part equal to twenty‑five percent (25%) of the
production company's qualifying expenses. For the purposes of this section,
in the case of an episodic television series, an entire season of episodes is
one production. The credit is computed based on all of the taxpayer's
qualifying expenses incurred with respect to the production, not just the
qualifying expenses incurred during the taxable year.
(b1) Repealed by Session Laws 2009‑529, s. 2, effective January 1, 2011.
(c) Pass‑Through Entity. – Notwithstanding the provisions of G.S. 105‑131.8 and G.S. 105‑269.15, a pass‑through entity that qualifies for a credit provided in this section does not distribute the credit among any of its owners. The pass‑through entity is considered the taxpayer for purposes of claiming a credit allowed by this section. If a return filed by a pass‑through entity indicates that the entity is paying tax on behalf of the owners of the entity, a credit allowed under this section does not affect the entity's payment of tax on behalf of its owners.
(d) Return. – A taxpayer may
claim a credit allowed by this section on a return filed for the taxable year
in which the production activities are completed. The return must state the
name of the production, and the taxpayer must provide a description of
the production, production and a detailed accounting of the
qualifying expenses with respect to which a credit is claimed. The qualifying
expenses are subject to audit by the Secretary before the credit is allowed.
(e) Credit Refundable. – If a credit allowed by this section exceeds the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary must refund the excess to the taxpayer. The refundable excess is governed by the provisions governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In computing the amount of tax against which multiple credits are allowed, nonrefundable credits are subtracted before refundable credits.
(f) Limitations. – The
amount of credit allowed under this section with respect to a per production
that is a feature film may not exceed twenty million dollars ($20,000,000).shall
not exceed the following amounts:
(1) For a feature‑length film, five million dollars ($5,000,000).
(2) For a television series, fifteen million dollars ($15,000,000) per season.
No credit is allowed under this section for any production that satisfies one or more of the following conditions:
(1) It is has the
primary purpose of political advertising.advertising, fund‑raising,
or marketing a product or service.
(2) It is a television production
of a news program or live sporting event.program, including weather,
financial market, and current event reports.
(3) It is a live sporting event, including pre‑event and post‑event coverage and scripted sports entertainment.
(4) It is a talk, game, or awards show or other gala event.
(5) It contains material that is obscene, "obscene,"
as defined in G.S. 14‑190.1.G.S. 14‑190.1, or that
is "harmful to minors," as defined in G.S. 14‑190.13.
(4)(6) It is a radio
production.
(7) It fails to contain in the end credits of the production a statement that the production was "Filmed in North Carolina," a logo provided by the North Carolina Film Office, and an acknowledgement of the regional film office responsible for the geographic area in which the filming of the production occurred. Additionally, the production company will offer marketing opportunities to be evaluated by the North Carolina Film Office to ensure that they offer promotional value to the State.
(8) It has received a grant from the Film and Entertainment Grant Fund set out in G.S. 143B‑437.02A.
(g) Substantiation. – A
taxpayer allowed a credit under this section must maintain and make available
for inspection any information or records required by the Secretary of Revenue.
The taxpayer has the burden of proving eligibility for a credit and the amount
of the credit. The Secretary may consult with the North Carolina Film Office of
the Department of Commerce within the Economic Development Partnership
of North Carolina and the regional film commissions in order to determine
the amount of qualifying expenses.
(h) Report. – The Department must include in the economic incentives report required by G.S. 105‑256 the following information itemized by taxpayer:
(1) The location of sites used in a production for which a credit was taken.
(2) The qualifying expenses for which a credit was taken, classified by whether the expenses were for goods, services, or compensation paid by the production company.
(3) The number of people employed in the State with respect to credits taken.
(4) The total cost to the General Fund of the credits taken.
(i) Repealed by Session Laws 2006‑220, s. 4, effective for taxable years beginning on and after January 1, 2007.
(j) NC Film Office. Notification.
– To claim a credit under this section, a taxpayer must notify the Department
of Commerce North Carolina Film Office within the Economic Development
Partnership of North Carolina of the taxpayer's intent to claim the
production tax credit. The notification must include the title of the
production, the name of the production company, a financial contact for the
production company, the proposed dates on which the production company plans to
begin filming the production, and any other information required by the
Department. For productions that have production credits, a taxpayer
claiming a credit under this section must acknowledge in the production credits
both the North Carolina Film Office and the regional film office responsible
for the geographic area in which the filming of the production occurred.
(k) Sunset. – This section
is repealed for qualifying expenses occurring on or after January 1, 2015.2022."
SECTION 38.3.(d) This section becomes effective January 1, 2019, and applies to productions with qualifying expenses occurring on or after January 1, 2019.
DEED STAMP PROCEEDS
SECTION 38.4.(a) G.S. 105‑228.30(b) reads as rewritten:
"(b) The register of deeds of each county must remit the proceeds of the tax levied by this section to the county finance officer. The finance officer of each county must credit one‑half of the proceeds to the county's general fund and remit the remaining one‑half of the proceeds, less taxes refunded and the county's allowance for administrative expenses, to the Department of Revenue on a monthly basis. A county may retain two percent (2%) of the amount of tax proceeds allocated for remittance to the Department of Revenue as compensation for the county's cost in collecting and remitting the State's share of the tax. The Department of Revenue shall credit seventy‑five percent (75%) of the funds remitted to the Department of Revenue under this subsection to the General Fund. Of the remaining twenty‑five percent (25%) of the funds remitted to it pursuant to this section, the Department of Revenue shall credit thirty‑five percent (35%) to the Clean Water Management Trust Fund, thirty‑five percent (35%) to the Parks and Recreation Trust Fund, fifteen percent (15%) to the North Carolina Agricultural Development and Farmland Preservation Trust Fund established under G.S. 106‑744, and fifteen percent (15%) to the North Carolina Housing Trust Fund established under G.S. 122E‑3."
SECTION 38.4.(b) G.S. 143B‑135.234(a) reads as rewritten:
"(a) Fund Established. – The Clean Water Management Trust Fund is established as a special revenue fund to be administered by the Department of Environmental Quality. The Fund receives revenue from the following sources and may receive revenue from other sources:
(1) Annual appropriations.
(2) Special registration plates under G.S. 20‑81.12.
(3) Other special registration plates under G.S. 20‑79.7.
(4) The excise tax on conveyances levied pursuant to Article 8E of Chapter 105 of the General Statutes."
SECTION 38.4.(c) G.S. 143B‑135.56(a) reads as rewritten:
"(a) Fund Created. –
There is established a Parks and Recreation Trust Fund in the State Treasurer's
Office. The Trust Fund shall be a special revenue fund consisting of gifts and
grants to the Trust Fund Fund, monies credited to the Trust Fund
pursuant to G.S. 105‑288.30(b), and other monies appropriated to
the Trust Fund by the General Assembly."
SECTION 38.4.(d) G.S. 106‑744(c) reads as rewritten:
"(c) There is established
a "North Carolina Agricultural Development and Farmland Preservation Trust
Fund" to be administered by the Commissioner of Agriculture. The Trust
Fund shall consist of all monies received for the purpose of purchasing
agricultural conservation easements or funding programs that promote the
development and sustainability of farming and assist in the transition of
existing farms to new farm families, or monies transferred from counties or
private sources.sources, or monies credited to the Trust Fund
pursuant to G.S. 105‑288.30(b). The Trust Fund shall be invested
as provided in G.S. 147‑69.2 and G.S. 147‑69.3. The
Commissioner shall use Trust Fund monies for any of the following purposes:
…."
SECTION 38.4.(e) G.S. 122E‑3(b) reads as rewritten:
"(b) The Fund shall
consist of monies received under this act act, monies credited to the
Fund pursuant to G.S. 105‑288.30(b), and any other sources of
revenue, public or private, dedicated for inclusion in the Fund."
EVALUATION OF SAVINGS RESERVE
SECTION 38.5. G.S. 143C‑4‑2(f) reads as rewritten:
"(f) Evaluation of
Savings Reserve. – The Office of State Budget and Management and the Fiscal
Research Division of the General Assembly shall jointly develop and annually
produce an evaluation of the adequacy of the Savings Reserve based on the
volatility of North Carolina's General Fund tax structure, which shall take
into consideration relevant statistical and economic literature. After
completing the evaluation, these entities may revise the methodology as needed
to estimate the target for the Savings Reserve balance, which shall be
calculated so as to be sufficient to cover two years of need for nineeight
out of 10 scenarios involving a decline in General Fund revenue from one fiscal
year to the next fiscal year. The recommended balance shall be expressed as a
percentage of the prior year General Fund operating budget appropriations,
excluding departmental receipts. The Office of State Budget and Management
shall report this percentage to the Chairs of the House of Representatives and
Senate Appropriations and Finance Committees no later than February 1 of each
year."
PART XXXIX. MISCELLANEOUS PROVISIONS
STATE BUDGET ACT APPLIES
SECTION 39.1. The provisions of the State Budget Act, Chapter 143C of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.
MOST
TEXT APPLIES TO THE 2018‑2019 FISCAL YEAR
SECTION 39.2. Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018‑2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018‑2019 fiscal year.
SECTION 39.3. The headings to the parts, subparts, and sections of this act are a convenience to the reader and are for reference only. The headings do not expand, limit, or define the text of this act, except for effective dates referring to a part or subpart.
SECTION 39.4. If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.
SECTION 39.5. Except as otherwise provided, this act becomes effective July 1, 2018.
