House committee substitute to the 1st edition makes a clarifying change.

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

Amends the proposed changes to GS 105-187.9 to require $30 million (rather than $10 million) of the taxes collected at the rate of 8% (was, those collected at the rates of 5% and 8%) under Article 5A, NC Highway Use Tax, to be credited annually to the Highway Fund, with the remainder credited to the General Fund. Now requires taxes collected at the rate of 5% under Article 5A to be credited to the Highway Fund.

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

Amends proposed GS 115C-311 by removing the requirement that the RFP for proposals for the program include peer recommendation letters from teachers who teach in the same grade or subject area as the teacher in the advanced teaching role. Provides that material revisions of a plan submitted to the State Board of Education by a local board of education with at least one Advanced Teaching Roles school must be made only upon approval of the State Board of Education. Clarifies that the State Board of Education may renew or terminate the plan of any local school administrative unit that fails to meet criteria established by the Board in accordance with the statute and the Advanced Teaching Roles designation of any school within that unit. Makes additional clarifying changes.

Changes regarding abstract of statement of financial condition by savings banks and savings and loan associations.  Eliminates requirement of state savings banks and savings and loan associations from having to publish in a newspaper an abstract of their annual statement of business standing and financial condition, previously found in GS 54C-63 and GS 54B-75, respectively, and moves the requirement of the Commissioner of Banks to conduct a thorough examination of those annual statements from GS 54C-63 to GS 54C-62 for savings banks and from GS 54B-76 to GS 54B-75 for savings and loan associations. These changes are effective upon becoming law.

Raffles.  Amends GS 14-309.15 (criminal code: raffles), subsection (h), by making lawful the ability of all federally insured depository institutions, previously limited to credit unions, to conduct a savings promotion raffle, and adds references to newly enacted GS 53C-6-20, GS 54B-140, and GS 54C-180 allowing raffles for the different types of savings institutions.  Makes minor, non-substantive changes to other subsections in GS 14-309.15.

Amends GS Chapter 53C (regulation of banks) by adding new GS 53C-6-20 to allow a savings promotion raffle that requires a minimum deposit of money in a savings account or savings program to qualify for a chance at winning a prize.  Requires the savings institution to maintain records to aid an audit, conduct the raffle in a safe and sound manner, and disclose the terms and conditions of the promotion to the account holders or prospective account holders.  

Amends GS Chapter 54B (savings and loan associations) by adding new GS 54B-140 to allow a savings promotion raffle with the same parameters and requirements as provided in GS 53C-6-20.

Amends GS Chapter 54C (savings banks) by adding new GS 54C-180 to allow a savings promotion raffle with the same parameters and requirements as provided in GS 53C-6-20.

Changes regarding raffles become effective December 1, 2019, and apply to raffles conducted on or after that date.

Increasing number of North Carolina Banking Commission members. Amends GS 53C-2-1(a) to increase from 15 to 16 the number of members of the Banking Commission, by increasing from 12 to 13 the number of members appointed by the Governor.  Adds requirement that one member appointed by the Governor must be licensed or registered, or employed by someone licensed or registered, under Article 19B of GS Chapter 53 (The Secure and Fair Enforcement Mortgage Licensing Act).  Effective upon becoming law; the initial term of the new member begins October 1, 2019.

Default effective date.  Except as otherwise provided, effective upon becoming law.

 

Amends GS 74C-3 to include persons or other entities discovering, locating, or disengaging devices intended to block the transmission of electronic signals for valuable consideration, and individuals and other entities that for valuable consideration provide security measures to ensure the safety of business executives, public officials, celebrities, or other individuals with elevated personal risk, in the definition of private protective services profession. Provides that detection of deception examiner is limited to those persons who provide the service for a fee. Removes contracts for the protection of individuals from serious bodily harm or death from the definition of private detective or private investigator. Adds digital forensics examination and defines the term to mean any individual, firm, association, or corporation which, for a fee or other valuable consideration, provides or offers to provide examination of digitally stored data to recover, image, analyze, or examine the data by using software to determine responsibility or reconstruct usage of the data. Removes persons engaged in computer or digital forensic services from those excluded from private protective services, and adds to the exclusion for persons engaged in network or system vulnerability testing to include routine service or repair. Excludes persons under contract or employed by an occupational licensing board while performing an investigation solely for that board from the definition of private protective services. Establishes that, upon proof that the private investigator has provided services pursuant to former GS 74C-3(a)(8) (concerning private detectives and private investigators) within the five years prior to the effective date of the act, a licensed NC private detective can receive a close personal protection license upon payment of the applicable fee; however, requires the private investigator to meet all requirements for a close personal protection license upon renewal of the license; applicable only to private investigators and not trainees. Effective July 1, 2020.

Amends GS 74C-5 to further authorize the Private Protective Services Board (Board) to do four additional listed things, including adopting and publishing a code of professional conduct for licencees, registrants, certificate holders, and permit holders, the violation of which is grounds to suspend or revoke a license, registration, or permit issued pursuant to GS 74C-12.

Amends GS 74C-7 to authorize the Secretary of Public Safety to investigate complaints, allegations, or suspicions of wrongdoing or violations of GS Chapter 74C involving unlicensed individuals, licensed individuals, or individuals to be licensed (currently, only individuals licensed and to be licensed). Authorizes the Secretary to enforce GS Chapter 74C and impose any authorized penalty against any individual or entity under investigation for and charged with a violation of the Chapter.

Amends GS 74C-8 to extend the time period which a business entity has to find a replacement qualifying agent from 30 to 90 days, and authorizes the Board to extend the 90-day period for an additional 30 days upon the filing of a petition by the business entity and a hearing by the Board. Authorizes the Board to require a late fee of $100 for missing the deadline. Requires filing of a certificate of liability insurance with the Board to issue a license. Requires applicants to pay the initial license fee and make the required contribution to the Fund within 90 days of the date the applicant receives notice of pending licensure approval unless the Board extends the period by an additional 30 days upon the filing of a petition by the applicant and a hearing by the Board. Also amends the criminal record check requirements and qualifications, adding that conviction of any crime involving the illegal use, carrying, or possession of a firearm or other deadly weapon, and the conviction of a crime involving assault (was felonious assault) or an act of violence, are prima facie evidence that the applicant does not have good moral character or temperate habits as required by the statute.

Amends GS 74C-9 to cross-reference GS 74C-13 (concerning firearm registration permits for licensees) and to make conforming changes.

Amends GS 74C-10 to further require trainees supervised by licensees, carrying a firearm while engaged in private protective services activities, to obtain a liability insurance policy as specified. Authorizes a licensee to provide coverage for a trainee under the licensee's supervision, but failure to do so does not exempt the trainee from this statute. Makes technical and conforming changes.

Amends GS 74C-11 to authorize the deployment of a properly registered or licensed armed security guard from another state by a licensee during a State of Disaster or a State of Emergency declared by the Governor upon satisfaction of specified requirements, including completion of the four-hour training course mandated by specified law and rule, qualification by the Board-certified firearms instructor based on the firearms the armed security guard intends to use, and approval of the employment by the Director of the Board. Deems such qualification valid for a period of 12 months. Prohibits the duration of deployment from exceeding the declared State of Emergency or Disaster.

Amends GS 74C-12 to apply that statute to trainees, and to further authorize the Board to deny, suspend, or revoke a certification under that statute. Authorizes the Board to also take the disciplinary actions in that statute for violation of any State or federal firearms law and for fraudulently holding oneself out as employed or licensed by the Department of Public Safety (was, State Bureau of Investigation).

Amends GS 74C-13 to require proprietary employers to register individuals carrying a firearm within 30 days of employment. Directs a proprietary security organization employing an armed security guard to submit to the Board an application for license, and to renew its license every two years. Authorizes the Director of the Board to summarily suspend a firearm registration permit pending resolution of charges for any crime involving moral turpitude, offenses set out in GS 74C-12, or any crime set forth in GS 74C-8(d), as amended (previously, only for charges involving the illegal use, carrying, or possession of a firearm). Requires the firearms training program under subsection (h) to cover legal limitations on the use of, and range firing and safety procedures for, firearms (was, hand guns). Makes conforming changes.

Enacts new GS 74C-13.1. Exempts four listed classes of persons from the firearms training requirements of GS 74C-13(b), including persons who have successfully completed the North Carolina Basic Law Enforcement Training and completed the first year of probationary employment. Requires specified documentation from applicants claiming one of the exceptions. Directs the Board to deny exemptions if the applicant fails to provide documentation. Requires exempted applicants to qualify within the first three attempts on the required firearm qualification course. Failure to qualify on both courses requires the applicant to undergo the entire 20-hour course of instruction. Applicants claiming an exemption must still complete the legal instruction required in GS 74C-13(b)(1).

Amends GS 74C-17 to apply the civil penalty limit of $2,000 as a limit on each individual violation, instead of as a general limit. Authorizes the Board to charge costs, including attorneys' fees, for any proceeding governed by GS Chapter 150B or authorized by this statute.

Amends GS 74C-23 to require companies, firms, or corporations licensed under this Chapter to provide the Director with notice of change of ownership within 10 days (was, 60 days) prior to the effective date of the transaction and a list of all registrants and licensees affected by the transaction. Requires notice to the Director within 60 days from the effective date of the transaction, written confirmation of the completion of any necessary changes for the acquiring party to comply with this Chapter and applicable Board rules.

Amends GS 14-269.3, regarding carrying weapons into assemblies and establishments serving alcoholic beverages, to provide that the statute does not apply to persons registered as a security guard, or hired by the owner, lessee, or person or organization sponsoring the event or a person employed by an entity licensed under GS 74C-2 who is hired by the owner, lessee, or person or organization sponsoring the event.

Except as otherwise provided, effective July 1, 2019.

Prohibits any agency of the State, including the specified entities, from issuing a permit for oil or gas exploration or development activities using horizontal drilling and hydraulic fracturing treatments. Makes conforming changes and deletions in GS 113-391, GS 113-391.1, GS 113-393, GS 143-214.2, and GS 113-395.

Repeals GS 113-415.1, which invalidated local ordinances regulating oil and gas exploration, development, and production activities.

Applies to any application for a permit for oil and gas exploration and development activities received by any agency of the state on or after that date.

Amends GS 143-53 regarding rules the Secretary of Administration (Secretary) is authorized to adopt. Concerning review and protest of an awarded State contract, requires the Secretary to adopt rules or criteria governing the review of and decision on a protest on a contract in an amount less than the appropriate expenditure benchmark established under GS 143-53.1 (previously, a contract of less than $25,000) by the agency that awarded the contract. Makes conforming changes to require the Division of Purchase and Contract (Division) to review and decide a protest on a contract valued at an amount that exceeds the appropriate expenditure benchmark established under GS 143-53.1 (was, a contract valued at $25,000 or more). Adds that a waiver of competition for the purchase, rental, or lease of goods or services is subject to the Secretary's review if the expenditure exceeds the agency's benchmark established under GS 143-53.1 (was, if the expenditure exceeds $10,000).

Amends GS 143-57 regarding the purchase of articles in certain emergencies. Now requires the report on the circumstances of an emergency or need under the statute and the transactions made under the circumstances to be promptly made to the Division if the expenditure exceeds the benchmark established in GS 143-53.1 (was, if the expenditure exceeds $10,000).

Amends GS 143-57.1 regarding State furniture requirements contracts. Modifies the provisions concerning the required condition that awards be made to at least three qualified vendors unless not available, as provided, for each category of goods under each contract, to remove the requirement that a vendor be listed on the State's qualified products list to be a qualified vendor under the provision. 

Amends GS 146-27 to require the Department of Administration to give written notice to the Legislative Commission on Governmental Affairs (Commission), rather than prior consultation with the Commission, when a proposed disposition of land owned by the State or by any State agency is a sale or gift of land with an appraised value of at least $25,000. Requires the notice to be given to the chairs of the Commission at least 30 days prior to the disposition. Applies to dispositions made on or after July 1, 2019.

Appropriates $100,000 in nonrecurring funds for 2019-20 to the Department of Agriculture and Consumer Services to be allocated to the Southeastern North Carolina Agricultural Events Center to provide for construction and equipment. Effective July 1, 2019.

Appropriates $100,000 in nonrecurring funds from the General Fund to the Town of Huntersville for the 2019-20 fiscal year to be used as the title indicates. Provides that the Town is to provide a report to the Department of Environmental Quality and Department of Health and Human Services on the use of 2017 grant funds and plans for this appropriation by July 1, 2019.

Effective July 1, 2019.

Appropriates $2 million in recurring funds for 2019-20 from the General Fund to the UNC Board of Governors to be allocated to North Carolina State University (NCSU) to support the Biomanufacturing Training and Education Center at NCSU for a collaborative effort to accelerate the development of innovative manufacturing processes for biopharmaceutical products. States the NCGA's intent: (1) to provide funding of $2 million per year for three years in order to provide a total $6 million in State funds as a match for a federal grant from the National Institute of Standards and Technology and (2) that thereafter no further funds will be appropriated for this purpose. Accordingly, requires the Office of State Budget and Management to remove the $2 million annual appropriation in UNC's base budget once the funding pledge has been fulfilled. Effective July 1, 2019.

Identical to S 534, filed 4/2/19.

Amends GS 136-127, adding to the legislative policy declaration regarding outdoor advertising, establishing the importance of outdoor advertising in the national economy. Declares it in the public interest that outdoor advertising signs be erected, maintained, and clearly visible along State highways in order to provide public service announcements and information on services and products available to the general public, as specified. Explicitly recognizes the need to balance the needs of outdoor advertisers against the beatification of the State.

Amends GS 136-128, which sets forth defined terms applicable to Article 11, the Outdoor Advertising Act. Adds the terms area zoned commercial or industrial, customary use, main-traveled way or traveled way, on-premises/on-property sign, and sign location or site. Amends the definitions for erect or erection, nonconforming sign, State law, and unzoned commercial or industrial area. 

Enacts GS 136-130.1, setting forth criteria for an area unzoned commercial or industrial, requiring one or more commercial or industrial activities to satisfy all nine criteria prior to submitting an outdoor advertising permit application to the Department of Transportation (Department), including the activity having all basic utilities, the activity being in active operation at least six month prior to the date of application submission, and the activity opening to the public at least 20 hours per week, as specified. In considering whether the nine criteria have been met, establishes certain considerations and measurement guidelines which must be used. Enumerates 10 activities which are not qualifying activities for an unzoned commercial or industrial area, including outdoor advertising structures, activities more than 660 feet from the nearest edge of the right-of-way, railroad trucks and minor sidings, and illegal and nonconforming junkyards.

Modifies GS 136-131 to authorize the Department to acquire by purchase, gift, or condemnation all outdoor advertising and all property rights pertaining to outdoor advertising in lawful existence or lawfully erected. Defines the scope of authority to include all acquisitions, purchases, condemnations, or takings by the Department that cause the removal of any lawfully erected outdoor advertising, regardless of the location and proximity of the outdoor advertising to the interstate or primary system (previously limited to nonconforming advertising under GS 136-129, GS 136-129.1, or GS 136-129.2). Makes conforming changes to refer to any acquisiton, purchase, condemnation, or taking (previously did not explicitly include taking). Lists nine factors which must be used in determining just compensation under the statute, including the sales price of similar outdoor advertising, the effect of land-use restrictions, and the reasonable expectations of lease renewal for a period in excess of that stated in the lease for original or renewal terms. Adds a new requirement for the Department to undertake the project necessitating the acquisition or taking under GS 133-11 prior to any acquisition or taking under the statute, including allowing the outdoor advertising to remain until actual construction or other physical site work is commenced on the project and within 100 feet of the outdoor advertising sign. Specifies that the statutes does not affect relocation assistance funding, which is in addition to any just compensation provided.

Amends GS 136-131.1, expanding the provisions to include just compensation for removal of outdoor advertising for which there is a valid permit issued by the Department pursuant to GS Chapter 11 and regulations thereunder (previously limited to outdoor advertising adjacent to a highway on the National System or a highway on the Federal aid Primary Highway System). 

Enacts GS 136-131.3, requiring the relocation and reconstructing of any legally erected outdoor advertising that is caused to be moved due to State or local government agencies or other possessing eminent domain authority imposing eminent domain authority upon property on which the sign is located. Details six requirements for such relocation or reconstruction, such as requiring that the new site be any area within 660 feet of the nearest edge of a highway on the National System or the federal aid highway system within the same zoning jurisdiction or within the same city or county limits if the signs located in an unzoned area, and requiring the construction for the relocation work to commence within one year after the later of the date of removal or the effective date of the Article. Generally allows for relocation of lawfully erected signs for which a permit has been issued by the Department, which do not qualify for relocation under the previous provisions, to relocate and reconstruct the sign subject to the same six requirements, except that the sign cannot be relocated more than 250 feet from the original lot boundaries on which the sign was previously erected. Provides special rules for signs legally existing but would not be conforming to customary use if relocated on the same sign location or site. Permits the removal of any vegetation to improve relocated sign visibility upon written consent of the landowner and selective vegetation removal permit issued under the Article, as specified. Prohibits denial of a new site for relocation due to vegetation obstructing visibility, and prohibits cities or counties from enforcing conflicting regulations. Provides for preemption of all state political subdivisions' regulation or prohibition the relocation of outdoor advertising. Applies to outdoor advertising signs removed on or after January 1, 2014.

Amends GS 136-133.1, which provides for a selective vegetation removal permit. Now provides for the maximum cut or removal zone for each sign face for the direction of travel for which the sign faces is oriented to not exceed a continuous 500 feet horizontal distance parallel to a State right-of-way and measured from a point on the main-traveled way of the highway nearest the sign face (previously provided parameters to establish five points in order to define the limits of the vegetation or removal cut area). Now requires (was, permits) the Department to approve plans for cutting, thinning, pruning, or removing vegetation outside of the cut or removal zone along acceleration or deceleration ramps so long as sign visibility will be imposed and the total aggregate of cutting or removal does not exceed the specified maximum allowed. Further, now requires the Department to approve plans for the cutting, thinning, pruning, or removal of vegetation along or within medians of the interstate or federal aid highway system so long as the view to the cross read face of the sign will be improved and the sign owner replaces the disturbed median area with low grade hardy shrubs at the sign owner's expense. Now qualifies the requirement for native dogwoods and redbuds to be preserved, requiring preservation only to the extent possible. Adds that a selective vegetation removal permittee can relocation and replace any native dogwoods or native redbuds existing within the cut or removal zone established under the statute to a location within 2,500 feet on either side of the outdoor advertising structure, as measured along the edge of the pavement of the main-traveled way of the nearest controlled route, but only if necessary. Requires the selective vegetation removal permittee to replace the native dogwoods or native redbuds with the same species and quantity as specified if preservation is not possible during relocation.

Amends GS 136-133.2 to allow permits to remove vegetation to be granted for outdoor advertising locations that have been permitted for one year (was, two years) prior to the date of application. Now also allows permits to remove vegetation to be granted for outdoor advertising locations, if relocated as allowed under law, and the outdoor advertising otherwise complies with the requirements of the statute and rules adopted by the Department. Makes conforming changes to GS 136-133.5

Provides a severability clause. 

Identical to S 415, filed 3/28/19.

Amends GS 15A-626 to provide that the district attorney must notify a law enforcement officer by personal service 10 days before a grand jury is to consider a presentment or indictment of the law enforcement officer for actions arising out of or in the performance of the officer's duties as a sworn law enforcement officer. Requires notifying the officer that he/she is entitled to appear before the grand jury and voluntarily testify or present evidence if he/she desires. If the officer elects to testify, he/she must be called after the State's evidence has been presented.

Applies to grand jury proceedings on or after December 1, 2019.

Identical to S 625, filed 4/3/19.

Amends GS 20-63 concerning the amount of compensation payable by the Division of Motor Vehicles (DMV) to a commission contractor by adding that the standard transaction rate is $2. Provides that the collection of the highway use tax and the removal of a registration stop (was, inspection stop) are considered a separate transaction compensated at three-fourth of the standard rate (was, compensation of $1.30). Adds that the collection of a civil penalty imposed under GS 20-311 for a lapse in financial responsibility is a separate transaction and sets compensation at two times the standard transaction rate. Further amends the statute by providing that the specified items that were to be considered as a single transaction when performed at the same time, is to be compensated at the standard transaction rate (was, $1.46) and amends that list of transactions to include the receipt of the restoration fee imposed for registering a vehicle after a lapse in financial responsibility (previously referred to the receipt of the civil penalty or restoration fee). 

Enacts new GS 20-63.03 to require the DMV to include, when it advertises the methods by which a vehicle owner may title or register a vehicle, the option to do so at the office of a commission contractor. Prohibits the advertising from encouraging one method over another or implying that going to the office of a commission contractor is a less desirable option. 

Effective October 1, 2019. 

Directs the State Board of Education (State Board) to reclassify ten specified Transportation Director positions to specified Assistant Director, Transportation Director, Senior Director, and Executive Director positions. Further directs the State Board to establish nine additional transportation personnel position classifications, based on existing positions, including Cost Clerk/Inventory Specialists, TIMS Data Managers, TIMS Coordinator, Receptionists/Office Support, Transportation Mech. Supv., and Transportation Coordinator, as specified. Additionally, directs the State Board to revise the salary grades and ranges for 20 specified personnel positions, including positions reclassifed by the act, based on the ranges established by the State Human Resources Commission for the specified Generally Salary Schedule Grades, ranging from GN03 to GN018.

Clarifies that an employee whose position is affected by the act will not receive a pay reduction due to a change in salary range, provided the employee was employed in an affected position prior to the enactment of the act and the employee remains in the same position. 

Effective July 1, 2019.

Identical to S 548, filed 4/2/19.

Section 1

Makes the following changes to GS Chapter 108D. Retitles the Chapter as Medicaid and NC Health Choice Managed Care Programs (was, Medicaid Managed Care for Behavioral Health Services).

Adds to the defined terms: adverse benefit determination, adverse disenrollment determination, beneficiary, Behavioral Health and Individuals with Developmental Disabilities Tailored Plan (BH IDD Tailored Plan), enrollment broker, fee-for-service program, mail, managed care entity, Medicaid transformation demonstration waiver, prepaid health plan (PHP), provider, and standard plan. Modifies existing defined terms: applicant, contested case hearing, enrollee, Local Management Entity (LME), mental health, intellectual or developmental disabilities, and substance abuse services (MH/IDD/SA services), network provider, and notice of manager care action (now notice of adverse determination). Now defines enrollee to mean a Medicaid or NC Health Choice beneficiary who is currently enrolled with a local management entity/managed care organization or a prepaid health plan (previously more narrowly defined as a Medicaid beneficiary who is currently enrolled with a local management entity/managed care organization). Deletes the defined terms: managed care action, Managed Care Organization, notice of resolution, and Prepaid Inpatient Health Plan. Makes conforming changes throughout the Chapter.

Modifies the scope of the Chapter set out in GS 108D-2 to provide that the Chapter applies to every managed care entity, applicant, enrollee, providers of emergency services, and network provider of a managed care entity. Exempts from the Chapter's provisions Medicaid or NC Health Choice services delivered through the fee-for-service program. Clarifies that the Chapter does not grant a NC Health Choice beneficiary benefits in excess of what is required by GS 108A-70.21.

Amends GS 108D-3 to provide that federal law prevails if there is conflict between the Chapter and the Social Security Act or 42 CFR Parts 438 (Managed Care) and 457 (Allotments and Grants to States for Child Health Insurance Programs). Adds an exception for state law to prevail when the applicability of federal law or rules has been waived by agreement between the State and the US Department of Health and Human Services. Provides that the Chapter prevails over conflicting State law contrary to the principles of managed care that will ensure successful containment of costs for health care services (previously, specified behavioral health care services).

Enacts Article 1A, Disenrollment and Prepaid Health Plans (PHP). Sets forth general provisions regarding construction of the Article. Allows for enrollees or their authorized representative to submit an oral or written request for disenrollment from a PHP. Details distinct parameters for disenrollment requests by an enrollee without cause or with cause, as specified. Provides for expedited requests for disenrollment for urgent medical needs that require disenrollment from the PHP. Permits a PHP to request disenrollment of an enrollee from a PHP only if the enrollee's behavior seriously hinders the PHP's ability to care for the enrollee or other enrollees of the PHP, and the PHP has documented efforts to resolve the issues that form the basis of the request for disenrollment of the enrollee. Requires PHPs to comply with federal law in requesting disenrollment. Provides for written resolution of approval or denial of a request by the Department of Health and Human Services (DHHS) within the first day of the second month following the month of request or within three calandar days of receipt of an expedited request. Requires DHHS to include an appeal request form which meets specified criteria, including informing the enrollee that the appeal form must be filed within 30 days of the mailing date of the notice. Provides for situations where DHHS determines a request does not meet the criteria for an expedited request.

Provides for the appeal process for an adverse disenrollment determination to the Office of Administrative Hearings, to be conducted in accordance with Part 6A, Medicaid Recipient Appeals Process, Article 2 of GS Chapter 108A.

Makes changes throughout Article 2, Enrollee Grievances and Appeals, to refer to managed care entities rather than LME/MCOs. Now requires managed care entities to establish and maintain internal grievance and appeal procedures that comply with specified federal law and afford enrollees and their authorized representatives (was, and network providers authorized in writing to act on behalf of enrollees) constitutional rights to due process and a fair hearing. Makes conforming changes throughout the Article to refer to an enrollee's authorized representative. Authorizes an enrollee or the enrollee's authorized representative to file grievances and managed care entity level appeals orally or in writing (was, file request for grievances). Establishes that the Article 2 appeals process does not apply to instances in which the sole basis for the managed care entity's decision is a provision in the State Plan or in federal or state law requiring an automatic change adversely affecting some or all beneficiaries. Makes changes to refer to an adverse benefit determination rather than a managed care action, and a notice of grievance resolution rather than a notice of grievance disposition. Now requires the notice of grievance resolution to be mailed no later than 30 days (was, 90 days) after receipt of the grievance. Allows the managed care entity to extend the time frame to the extent permitted by the specified federal law, 42 CFR 438.408(c).

Concerning standard managed care entity level appeals, grants an enrollee or the enrollee's authorized representative the right to file a request for a managed care entity level appeal of a notice of adverse benefit determination within 60 days (was within 30 days) after the mailing date of the notice. Requires a managed care facility to continue or reinstate (was just continue) the benefits of a Medicaid enrollee during the pendency of a managed care entity level appeal to the same extent required under 42 CFR 438.420 and new subsection (c1) of GS 108D-13. 

Specifies that NC Health Choice enrollees are not entitled to continuation or reinstatement of benefits. Requires the PHP to reinstate the benefits of a Medicaid enrollee if four requirements are satisfied, including timely filing of the appeal, timely filing for continuation of benefits, the appeal being one that involves termination, suspension, or reduction of a previously authorized service, and the service was ordered by an authorized provider. Now requires the managed care entity to resolve an appeal and notify the enrollee and all other affected parties within 30 days (was, 45 days) after receiving the request for appeal. Allows the managed care entity to extend the timeframe as permitted under federal law, 42 CFR 438.408. Now additionally permits an enrollee or the enrollee’s authorized representative to file a request for a contested hearing case hearing under GS 108D-15 if the enrollee has been deemed under 42 CFR 438.408(c)(3) to have exhausted the managed care entity level appeals process (previously, only after extinguishing the appeals procedures under GS 108D-14 concerning expedited appeals.

Concerning expedited managed care entity level appeals, specifies that for expedited appeal requests made by a network provider as an enrollee’s authorized representative, the managed care entity is to presume an expedited appeal is necessary. Now requires a managed care entity that denies a request for expedited appeal to make reasonable efforts to give the enrollee and all other affected parties oral notice of the denial and follow up with a written notice of denial by mail no later than 72 hours (was, two calendar days) after receiving the request. Requires a managed care facility to continue or reinstate (was, just continue) the benefits of a Medicaid enrollee during the pendency of an expedited managed care entity level appeal to the same extent required under 42 CFR 438.420 and new subsection (c1) of GS 108D-14, which requires PHP reinstatement in the same manner as during the pendency of standard appeal requests, in accordance with new GS 108D-13(c1). If granting the request for an expedited appeal, now requires the managed care entity to resolve the appeal and provide written notice to the enrollee and all other affected parties within 72 hours (was, three working days) after receiving the request. Allows the managed care entity to extend the timeframe for resolution as permitted under federal law, 42 CFR 438.408. Now additionally permits an enrollee or the enrollee’s authorized representative to file a request for a contested hearing case hearing under GS 108D-15 if the enrollee has been deemed under 42 CFR 438.408(c)(3) to have exhausted the managed care entity level appeals process (previously, only after exhausting the appeals procedures under GS 108D-13 concerning standard appeals). 

Makes conforming changes to GS 108D-15 concerning contested case hearings on disputed adverse benefit determinations. Now requires the appeals request form required to be included with the managed care entity’s notice of resolution to inform the enrollee that the form must be mailed or faxed no later than 120 days (was, 30 days) after the mailing date of the notice, and for NC Health Choice enrollee’s the NC Health Choice identification number (Medicaid enrollees are already required to include the enrollee’s identification number). Requires the continuation or reinstate of a Medicaid enrollee’s benefits during the pendency of an appeal in the same manner as appeals at the managed care entity level. Specifies that an administrative law judge cannot order a managed care entity to continue benefits in excess of what is required under federal law, except to the extent required by GS 108D-13(c1) and GS 108D-14(c1), as enacted. Makes conforming changes regarding conflict of Chapter provisions and federal law. Specifies that the rules, rights, and procedures for contested hearings concerning adverse benefit determinations cannot provide an enrollee with rights less than those provided under federal law (was, no lesser or greater rights than under federal law).  

Enacts Article 3, Managed Care Entity Provider Networks.

Requires each LME/MCO operating the combined 1915(b) and (c) waivers to maintain and utilize a closed network of providers to furnish MH/IDD/SA services to its enrollees. Requires each PHP to develop and maintain a provider network that meets access to care requirements for its enrollees. Mandates PHPs to include providers designated as essential providers by DHHS, unless DHHS approves an alternate arrangement for securing the types of served offered by the essential providers. Details essential provider designation, minimally requiring providers that are federally qualified health centers, rural health centers, free clinics, local health departments, and State Veterans Homes to be identified as essential providers. Requires entities operating BH IDD Tailored Plans to utilize closed provider networks only for the provision of behavioral health, intellectual and developmental disability, and traumatic brain injury services. 

Effective October 1, 2019, and applies to appeals arising from LME/MCO notices of adverse determination mailed on or after that date and grievances received by an LME/MCO on or after that date

Section 2

Amends GS 90-414.4 to require PHPs to submit encounter and claims data by the commencement date of a capitated contract with the Division of Health Benefits for the delivery of Medicaid and NC Health Choice services as specified in Article 4 of GS Chapter 108D (previously referenced SL 2015-245 to define PHP and set the timeline for their submission).

Sections 3 through 7

Makes changes to GS Chapter 108A, Social Services. Adds to the defined terms set forth in GS 108A-24: fee-for-service program and Prepaid Health Plan (PHP). Makes technical and organizational changes.

Amends GS 108A-56 to provide for waiver agreements between the State and the US Department of Health and Human Services concerning statutory construction. Adds further provisions to clarify construction pertaining to PHPs.

Amends GS 108A-70 regarding DHHS garnishing employment income and the Secretary of Revenue withholding tax refunds to recoup certain amount spent on medical care. Makes organizational and clarifying changes. Adds that such actions can be taken to the extent necessary to reimburse a PHP for expenditures for costs under Part 6, Medical Assistance Program. Also adds that only claims for current or past due child support take priority over those claims, or similar reimbursement claims by DHHS under the same provisions. 

Expands Part 6A, Article 2 of GS Chapter 108A to also govern the process used by a Medicaid or NC Health Choice recipient to appeal an adverse disenrollment determination by DHHS. Defines adverse enrollment decision and contested Medicaid case, and modifies the definition of adverse determination. Makes conforming, clarifying and technical changes to the Part. Regarding the review of eligibility and Program enrollment decisions under GS 108A-70.29, specifies that the provisions do not apply to requests for disenrollment under Article 1A, GS Chapter 108D. Specifies that the provisions regarding the review of health services decisions applies only to health service decisions for services being provided to NC Health Choice recipient through the fee-for-service program, and excludes adverse benefit determinations. 

Section 8

Amends GS 122C-3, which sets forth the definitions related to the Mental Health, Developmental Disabilities, and Substance Abuse Act. Adds BH IDD Tailored Plan to the defined terms, and references the definition set out in GS 108D-1, as amended. Modifies LME/MCO to include entities under contract with DHHS to operate a BH IDD Tailored Plan.

Section  9 and 10

Amends GS 150B-1 to exempt from the contested case provisions DHHS with respect to disputes involving the performance, terms, or conditions of a contract between DHHS and a PHP. Makes conforming changes to reference NC Health Choice determinations under GS 108A-70.29(b), as amended.

Amends GS 150B-23 to incorporate NC Health Choice enrollee appeals. Specifies when PHPs are to be considered an agency under the provisions. 

Section 11

Modifies Section 4 of SL 2015-245, as amended, concerning services covered by PHPs, to exclude Medicaid services covered by the LME/MCO under combined 1915(b) and (c) waivers unless covered under a BH IDD Tailored Plan. Excludes from PHP coverage for a time determined by DHHS, recipients who are enrolled in the foster care system, receiving Title IV-E adoption assistance, under the age of 26 and formerly were in the foster care system, or under the age of 26 and formerly received adoption assistance. Makes changes to statutory references regarding LME/MCO management upon the commencement of capitated contracts.

Section 12

Makes clarifying change to Section 5(6) of SL 2015-245, as amended.

Section 13 directs the Revisor of Statutes to codify specified portions of SL 2015-245 into a new Article 4, Prepaid Health Plans, GS Chapter 108D. Details the new Article’s structure. Provides specified authorizations in codifying the specified portions. 

Section 14 authorizes the Revisor to replace references to the Division of Medical Assistance with the Division of Health Benefits, except in GS 108A-54; GS 126-5(c)(34), GS 143B-138.1; and GS 143B-216.80. Provides for the changes to be effective July 1, 2019.

Section 15

Provides that the act is effective October 1, 2019, except as otherwise provided.

Appropriates $1,408,632 in additional recurring funds and $25,928 in nonrecurring funds for 2019-20 and $3,389,820 in additional recurring funds and $795,376 in nonrecurring funds for 2020-21 from the General Fund to the UNC Board of Governors to be allocated to the NC School of Science and Mathematics second campus in Morganton to be used for personnel, supplies, and equipment for the opening of the fall 2021 semester and for the first freshman class to enroll for the 2022-23 school year.

Appropriates $1 million in recurring funds for 2019-20 from the General Fund to the UNC Board of Governors to be allocated to NC A&T University to support research faculty and graduate students in doctoral programs in STEM fields and for associated research grants. 

Appropriates $1,447,000 for 2019-20 and $2,592,000 for 2020-21 in additional recurring funds from the General Fund to the UNC Board of Governors to be allocated to East Carolina University to expand rural residency programs in eastern North Carolina.

Appropriates $300,000 in recurring funds for 2019-20 from the General Fund to the UNC Board of Governors to be allocated to Fayetteville State University to house a Veterans Law Center to provide legal and behavioral health services to veterans in the Fayetteville area. 

Appropriates $300,000 in recurring funds for 2019-20 from the General Fund to the UNC Board of Governors to establish the Veterans Career Advancement Program as a pilot program to help student veterans transition from postsecondary education to the workplace. Funds are to be used to support one FTE position for a program director. 

Appropriates $1.1 million for 2019-20 and $2.10 million for 2020-21 in additional recurring funds from the General Fund to the UNC Board of Governors to be allocated to UNC Pembroke for operational expenses of the College of Health Sciences.

Effective July 1, 2019.

Appropriates $1 million in additional recurring funds and $4 million in nonrecurring funds for 2019-20 and $2 million in additional recurring funds and $5 million in nonrecurring funds for 2020-21 from the General or Fund to the UNC Board of Governors to be used as title indicates. Funds are to be used for upcoming phases of the project as well as for a shared Constituent Relationship Management service and associated data mart to aid smaller UNC constituent institutions in alumni engagement efforts. Effective July 1, 2019.

Appropriates $8,556,922 for 2019-20 from the Highway Fund to the Department of Transportation, to be used for the State Maintenance Assistance Program (SMAP) as title indicates. Effective July 1, 2019.

Part I.

Amends reporting requirements under GS 115D-5 (report on the waiver of tuition and registration fees), GS 115D-5.1, and GS 115D-9 (report on the approval of expenditures of any State funds for any capital improvements of existing institutions), and GS 126-8.3 (report on the on the voluntary shared leave program) by transferring reporting duties from the State Board of Community Colleges to the Community Colleges System Office. Further amends GS 115D-5.1 to make the report on the Customized Training Program due annually by September 1 (was, on an annual basis with no specified due date). Amends GS 115D-11.6 to require the Apprenticeship Council's report to be submitted annually by September 1 (was, on an annual basis with no specified due date) and amends the report recipients.

Amends GS 115D-58.10 by allowing the State Board of Community Colleges (Board) to determine what State employees and employees of institutions must be insured for the protection of State funds and property. Makes conforming changes. Provides that in lieu of a bond, the board of trustees of an institution may obtain and maintain adequate insurance coverage sufficient for the protection of institutional funds and property.

Amends GS 115D-3 by adding that the President of the North Carolina System of Community Colleges may reorganize the System Office in accordance with recommendations and plans submitted to and approved by the Board. Requires a report by March 1 if a reorganization is implemented to the specified NCGA committee. Makes organizational changes. Effective July 1, 2019. 

Part II.

Amends GS 116-209.62, regarding the NC Teaching Fellows Program (Program). Expands the Program to include eight higher education institutions with approved educator preparation programs (EPPs) that represent a diverse selection by the Teaching Fellows Commission of both postsecondary constituent institutions of the UNC System and private postsecondary institutions operating in the State (previously, limited selection to five institutions and did not require the selections to represent a diverse pool). Makes technical and conforming changes. Effective July 1, 2019, and applies to the award of forgivable loans beginning with the 2020-21 academic year. 

Further amends GS 116-209.62 to provide for forgivable loans under the Program to students matriculating at institutions of higher education who are changing to an approved program of study at (was, enrollment in) a selected EPP. Effective July 1, 2019, and applies to the award of forgivable loans beginning with the 2019-20 academic year.

Amends GS 116-239.8 to clarify that local school administrative units in which the laboratory school is located must administer, at its cost, the National School Lunch Program for the laboratory school. Provides that the local school administrative unit in which the laboratory school is located must provide transportation to students who reside in the local school administrative unit and attend the school (was, to students attending the school), and adds that this includes any students who are homeless and require assistance under the McKinney-Vento Homeless Assistance Act. Adds that the transportation requirement (1) applies regardless of where a laboratory school student resides in the unit or how the unit's transportation policies and practices are applied to other students and (2) includes providing transportation of students and personnel for laboratory school extracurricular activities and education trips in the same manner as other schools in the unit for that school year. Applies beginning with the 2019-20 school year.

Amends GS 116-239.5 by expanding on the immunities of the Subcommittee, chancellor, the constituent institution, an advisory board, and a laboratory school, and their members, employees, and agents, to include the specific immunities provided for in GS Chapter 115C applying to the State Board of Education, Superintendent of Public Instruction, a local board of education, a local school administrative unit, and their members and employees.

Amends GS 116-239.5, GS 116-239.7, and SL 2016-94 by reducing the number of designated laboratory schools from nine to six. 

Amends GS 116-41.30 to make the Future Teachers of North Carolina Program (Program) a selective, application-based symposium for high school juniors and seniors, offering a challenging introduction to teaching as a profession (was, a program providing professional development and curricula for courses that provide a challenging introduction to teaching as a profession for high school students offered by participating high schools in conjunction with college partners). Expands upon course content and sets out required practical benefits of the Program. 

Amends GS 116-41.31, which required the President of the University of North Carolina to select three constituent institutions to collaborate on development of the curricula for the Program and provide professional development; instead requires the President to establish a Future Teachers of North Carolina Advisory Council (Council) to oversee the Program. Requires the Council, at the President's discretion, to coordinate with constituent institutions to use expertise from individuals at institutions of higher education in designing the agenda and instructional content for the Symposium. Also makes the Council responsible for an application process to be used to select students as well as recruitment and outreach efforts. Deletes provisions encouraging high schools to offer Program courses to students. Deletes provisions requiring constituent institutions that partner with high schools to offer dual credit for high school students who complete the Program course with a specified grade.

Amends GS 116-41.32 by amending the items related to the Program that the UNC System Office must report on and changing the due date of the first report to October 15, 2020 (was, October 15, 2019). 

Amends SL 2018-5, Section 36.6, by requiring the UNC Board of Governors Planning Task Force to submit a preliminary report by April 1, 2019, and submit a final report by February 2020 (was, submit a report by April 1, 2019, only). Adds that the funds appropriated to the Board of Governors for the Task Force for 2018-19 do not revert at the end of the 2018-19 fiscal year and remain available until the end of the 2019-20 fiscal year. Effective June 30, 2019.

Provides that the funds appropriated by SL 2018-5 for enrollment adjustments for The University of North Carolina, including funds for the NC Promise Tuition Plan, to a reserve account in the Office of State Budget and Management for the 2018-19 fiscal year do not revert at the end of 2018-19 but remain available until the end of the 2019-20 fiscal year for the purpose of the "buy down" of any financial obligations resulting from the established tuition rate under GS 116-143.11 incurred by Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University, or for rapid growth at any of those constituent institutions. Effective June 30, 2019.

Appropriates $3 million for 2019-20 in nonrecurring funds from the General Fund to Carolina Ballet Inc. to be used as title indicates. Effective July 1, 2019.