Bill Summary for H 980 (2013-2014)

Summary date: 

May 16 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 980 (Public) Filed Wednesday, April 17, 2013
Intro. by Burr.

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Bill summary

House committee substitute makes the following changes to the 1st edition.

Changes the short and long titles.

Deletes the provisions of the 1st edition in its entirety and makes the following proposed changes.

Provides that the General Assembly directs the Director of the Budget (Director), with the State Controller and other necessary officials, to change the budget adjustments below in an amount not to exceed $401 million to cover a projected budget shortfall of $283 million and for the repayment of federal Medicaid drug rebates in the amount of $118 million.

Provides that the Director will make the following adjustments to increase the budget of the Division of Medical Assistance (DMA). The adjustments are set forth in priority with no adjustment being made until the preceding adjustment has been completely exhausted. (1) $74 million from the drug rebate refunds within the DMA; (2) $20.9 million from state appropriations not expended pursuant to Section 10.9g of SL 2012-142; (3) a minimum of $48 million from reversions within DHHS, with specified restrictions; (4) $213,432,878 from the June 30, 2012, unreserved fund balance; and (5) up to $44,667,122 from revenue overcollections for the 2012-13 fiscal year.

Provides that any budget adjustments provided for above will only be used to pay the costs of the State Medicaid Program for the 2012-13 fiscal year. Any adjustments not needed for these costs will revert to the unreserved fund balance of the General Fund. Provides that no adjustment or transfer will be made if doing so would impose, increase, or continue a financial obligation in the 2013-14 fiscal year or any subsequent fiscal year.

Requires the Office of State Budget and Management to maximize General Fund reversions for the 2012-13 fiscal year from all state agencies and departments to increase the June 30 unreserved fund balance.

Provides that, on or before October 1, 2013, the Office of State Budget and Management, DHHS, and the Office of State Controller will jointly report on the implementation of this act. The Office of State Budget and Management and DHHS will report on each measure taken and the Office of State Controller will certify compliance with Section 3 and Section 4 of the act. The report will be made to the Appropriations/Base Budget Committee of the Senate, the Appropriations Committee of the House, and the Joint Legislative Commission on Governmental Operations. Reporting requirements under GS 143C-6-4  do not apply to the adjustments made in the act. 


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