Senate committee substitute makes the following changes.
Section 1.
Reinstates provisions of GS 122C-154 that were removed in the previous edition (area authorities personnel of the public system of mental health, developmental disabilities, and substance abuse services) and further amends the prevision so that it (1) applies GS Chapter 126 (State Human Resources Act-SHRA) for purposes of personnel administration and (2) allows area authority senior management salaries in excess of the salary ranges set by the State HR Commission. Reorganizes and amends the statute as follows. Defines area authority senior management (AASM) as the area director and the employees who are statutorily designated as key personnel or substantially equivalent positions in the following roles: CEO, CFO, COO, Chief Compliance Officer, Chief Information Security Officer, and Chief Risk Officer. Reorganizes provisions of GS 122C-156 (Salary plan for area authority employees) that require salary plans for employees of the area authority into GS 122C-154. Specifies that AASM employee salaries must be in compliance with the SHRA. Makes conforming changes. Strikes provisions in GS 122C-121(a1) that discuss requirements for an area director to be paid a salary that is higher than the maximum applicable salary range. Changes the effective date to salary plans beginning July 1, 2025, (was, applies to employees of area authorities who are hired on or after the date the act becomes law and to salary plans established on or after that date).
Section 2.
Removes provisions repealing GS 126-5(a)(2)a (applying the State Human Resources Act to area mental health, developmental disabilities, and substance abuse authorities, except as otherwise provided in GS Chapter 122). Removes conforming change to GS 126-5 (employees subject to the SHRA), but amends the statute as follows. Specifies that the SHRA applies to employees of an area authority as defined, except as otherwise provided in GS Chapter 122C or otherwise exempted by the SHRA. Makes conforming changes. Exempts employees of area authorities except for AASM’s from the classification and compensation rules established by the State Human Resources Commission and the other listed statutory provisions of the SHRA in GS 126-5(c11). Removes effective date.
Section 3.
Strikes changes to GS 126-11 that would have removed (1) area mental health programs as one of the entities a county may establish and maintain a personnel system and (2) provisions that allow area mental health authorities to establish and maintain a personnel system for all employees of the area mental health authority, as described with the required approval. Amends GS 108D-60(a)(5) so that LME/MCOs operating BH IDD tailored plans are authorized (was, required) to contract with an entity that holds a PHP license and that covers the services required to be covered under a standard benefit plan contract.
Removes prior Section 4 (amendments to GS 108D-60, requiring LME/MCOs operating BH IDD tailored plans contract with a PHP during the initial term, with discretion thereafter).
Section 4.
Specifies that the act is effective when it becomes law, unless otherwise provided.
Bill Summaries: S527 (2025-2026 Session)
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Bill S 527 (2025-2026)Summary date: Apr 17 2025 - View summary
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Bill S 527 (2025-2026)Summary date: Mar 26 2025 - View summary
Section 1.
Removes provisions from GS 122C-154 (area authorities personnel of the public system of mental health, developmental disabilities, and substance abuse services) that (1) apply GS Chapter 126 (State Human Resources Act) for purposes of personnel administration and (2) allows salaries in excess of the salary ranges set by the State HR Commission as described. Makes conforming changes to GS 122C-156 (salary plans for employees of the area authority). Applies to employees of area authorities who are hired on or after the date the act becomes law and to salary plans established on or after that date.
Section 2.
Repeals GS 126-5(a)(2)a (applying the State Human Resources Act to area mental health, developmental disabilities, and substance abuse authorities, except as otherwise provided in GS Chapter 122). Makes conforming changes to GS 126-5 (employees subject to the State HR Act). Applies to employees of area mental health, developmental disabilities, and substance abuse authorities, defined as area authorities under GS 122C-3, hired after the date the act becomes law.
Section 3.
Removes area mental health programs as one of the entities a county may establish and maintain a personnel system for under GS 126-11 (local personnel systems). Removes provisions allowing area mental health authorities to establish and maintain a personnel system for all employees of the area mental health authority, as described with the required approval. Makes conforming changes.
Section 4.
Amends GS 108D-60, concerning behavioral health and intellectual/development disabilities tailored Medicaid plans (BH IDD tailored plans) to specify that Medicaid Local Management Entity/Managed Care Organizations (LME/MCO)’s operating BH IDD tailored plans only have contract with an entity that holds a Prepaid Health Plan (PHP) license and that covers the services required to be covered under a standard benefit plan contract during the initial contract term. After that term, allows LME/MCO’s operating BH IDD tailored plans to contract with an entity that holds a PHP license and that covers the services required to be covered under a standard benefit plan contract.