House committee substitute makes the following changes to the 2nd edition. 

Deletes the whereas clauses at the beginning of the act. Makes clarifying changes to the information LME/MCOs must submit. Amends the date by which the Department of Health and Human Services (Department) must report to the Joint Legislative Oversight Committee on Health and Human Services on encounter data submission requirements for local management entity/managed care organizations (LME/MCOs) from October 31, 2015, to February 1, 2016. 

Adds new sections adding language to GS 122C-115.3 governing the Secretary (Secretary) of Health and Human Services's approval of a county's withdrawal from an area authority on mental health, developmental disabilities, and substance abuse services operating under a 1915(b)/(c) Medicaid Waiver. The new language requires the Secretary to adopt rules creating a process for withdrawal, as required by GS 122C-112.1(38) and SL 2012-151, and prohibits the Secretary from approving a county's withdrawal until these rules are established. 

Amends GS 122C-118.1, pertaining to the structure of boards of the area authorities. The amendment allows the boards of county commissioners within certain large multicounty areas to appoint members of the area board through a process other than as required by this section if at least two thirds of the counties (was, each county) adopts a resolution to that effect. Allows the Secretary to approve an appointment process that delegates appointment authority to intermediary bodies. Adjusts the board membership requirement for hospital administrators who serve as nonvoting members who participate only in board activities that are open to the public. The amendment puts these limits on the membership of a hospital administrator only if the hospital receives reimbursement from the LME/MCO. 

Amends GS 122C-121 (director of an area board) and GS 122C-154 (personnel) to require approval of certain salary adjustments by the Director of the Office of State Human Resources (Director) and by the Secretary (was, just the Director). Amends the statute on personnel to require an area board to submit documentation of comparable salaries in comparable operations within the region to the Director before approving a salary adjustment that is above the normal allowable salary. 

Adds two new subsections to GS 122C-121 to require appointment of an area director based on the recommendation of a search committee with specified membership and requiring 30 days' prior written notice to the Secretary before an area director may be terminated. 

Includes three new uncodified sections, as follows.

The first uncodified section maintains and extends the pilot program of the Department's Division of Health Service Regulation to study the use of electronic supervision devices as an alternative means of supervision during sleep hours at facilities for children and adolescents who have a primary diagnosis of mental illness or emotional disturbance.

The second section requires the Department's Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to distribute one-twelfth of each LME/MCO's allocation each month by the last working day of the month.

The third uncodified section requires the Department to develop a plan for extending Community Guide services to individuals on the Medicaid Innovations Waiver waiting list and requires the Department to report to the Joint Legislative Oversight Committee on Health and Human Services on the plan by March 15, 2016.  

Makes technical changes. 

Changes the act's short and long titles.