Amends GS 35A-1213, providing that a corporation cannot be appointed as guardian, in regards to appointments of guardian for an incompetent person, for any individual to whom it provides mental health, developmental disabilities, or substance abuse services for compensation as part of a contractual or other arrangement with a local management entity (LME), including LMEs that have been approved to operate the Medicaid Waiver.

Establishes that an individual who contracts with or is employed by an entity that contracts with an LME, for mental health, developmental disabilities, and substance abuse services, cannot serve as a guardian for a ward for whom the individual or entity is providing these services unless the individual is (1) a parent or adoptive parent, (2) a family member of the ward, (3) a licensed family foster care provider, or (4) a licensed therapeutic foster care provider (was, unless the individual was a parent or immediate family member).