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

Section 2

Deletes the appropriation of $20,000 from the General Fund to the North Carolina Board of Licensed Clinical Mental Health Counselors for 2021-22 for use by the Board to assist with the administrative costs of the act. Makes conforming deletions.

Adds the following new content, effective July 15, 2022.

Directs the Department of Health and Human Services (DHHS) to contract for at least two-year terms with nonprofit grantees/recipients (grantees/recipients) that receive nonrecurring funding for each year of a fiscal biennium and receive recurring funding so long as the funding source does not prohibit multi-year contracts. Requires those receiving recurring federal grant funding to have the option to extend the initial contract term by one additional year if the extension is mutually agreed with DHHS by written agreement and the contract's funding remains available. Requires DHHS to allow any grantee/recipient receiving recurring or non-recurring state and/or federal funding for each year of a fiscal biennium to automatically activate limited-time extensions of up to three months for continuity of services when a formal extension or renewal process has not been completed within 10 business days of the subsequent contract start date, so long as the following criteria are met: they (1) are receiving recurring funds or non-recurring State and/or federal funding for each year of the fiscal biennium, (2) have received an unqualified audit report on its most recent financial audit as required by GS 159-34 or 09 NCAC 03M, (3) have a track record of timely performance and financial reporting to DHHS as required by the contract, (4) have not been identified by DHHS as having a record of noncompliance, as defined, with the requirements of any funding source used to support the contract and has not received an undisputed notice of such noncompliance by DHHS; and (5) have been in operation for at least five years.

Directs the Fiscal Research Division to provide DHHS, Division of Budget and Analysis with a list of described preliminary information for all non-State entities receiving directed grants through the Appropriations Act of 2022, within 15 days of the date that act becomes law. 

Deems the negotiation, determination, or settlement of the reimbursable amount of overhead under cost-reimbursement type contracts to be accomplished on an individual contract basis and based upon the federally approved indirect cost rate. Adds that for vendors who do not have a federally approved indirect cost rate, the de minimis rate of 10% of modified total direct costs applies.

Changes the act's titles.