Legislative Update for the Week of March 18

Bill Updates

HB 256, VA Survivors Benefits/Medicaid Eligibility (Farmer-Butterfield, Glazier, Lewis).  HB 256 will allow a deduction for Veterans Affairs survivors pension benefit when defining income for Medicaid eligibility.  It received a favorable report from the House Military and Homeland Security committee this week and will next be heard in the House Health committee.

HB 317, Improve Education for Children Who Are Deaf (Blackwell, Farmer-Butterfield, Holloway, Martin).  HB 317 would mandate that the State Board of Education develop assessment procedures and protocols to measure the acquisition of language skills necessary for literacy; require an IEP team to use the Comprehensive Exceptional Children Accountability System, Communication Plan Worksheet for Student Who is Deaf or Hard of Hearing, to document (i) the team's consideration of the language and communication needs of the individual child as the IEP is developed, (ii) placement decisions made for that child, and (iii) the team's review, at least annually, of the child's placement and language and communication needs; ensure that personnel who are highly qualified in the education of children who are deaf or hard of hearing are available to meet the unique needs of each child; and develop and implement strategies to ensure that parents of a child who is deaf or hard of hearing know they are entitled to request that the child's IEP team consider placement of their child in a residential setting.  It is scheduled to be heard next Tuesday, March 26 at 10 am.

SB 45, Incapacity to Proceed (Randleman). SB 45 was approved unanimously in the House this week.  It is scheduled for Monday evening in the Senate for a concurrence vote.

SB 140, Financial Exploitation of Older Adults (Bingham). SB 140 makes several recommended changes to the law to increase the recognition, reporting, and prosecution of those who defraud or financially exploit older adults, and to continue the Task Force on Fraud Against Older Adults.  A Proposed Committee Substitute was approved by the Senate Health committee this week and will next be heard in Senate Judiciary I.

 SB 334, Dorothea Dix Lease (Hise, Pate, Tucker).  SB 334 seeks to take by condemnation the leasehold interest in the Dix property that was conveyed to the City of Raleigh.  It further specifies that any proceeds from sale or lease of the property shall be used solely for mental health treatment purposes, which the General Assembly determines under the doctrine of cy pres to be as near as may be to the purpose of its acquisition of the property for charitable purposes.  The bill does allow for the lease of a portion of the property for use as a public park, with any proceeds thereof allocated to mental health purposes.  SB 334 was approved by the Senate Appropriations committee this week after a heated discussion.  It is scheduled for a full Senate vote on Monday evening.

 

New Legislation Filed This Week

HB 344, Uniform MH Reporting Requirements For NICS (Insko, Glazier, Luebke, Foushee).  HB 344 seeks to amend  G.S. 122C‑54(d1) regarding transmission of involuntary commitment data to the National Instant Criminal Background Check System to mandate the transmittal of involuntary commitment data, as well as other judicial determinations, to the NICS within 48 hours.  It has been referred to the House Rules committee.

HB 350, Court Improvement Project Juvenile Law Changes (Agency Bill) (Jordan, C. Graham). HB 350 proposes various changes to the juvenile code as proposed by the Court Improvement Project.  It has been referred to the House Judiciary B committee. 

HB 385, Youth Accountability Task Force (S. Stevens).  HB 385 seeks to establish the Youth Accountability Planning Task Force in the Division of Juvenile Justice, Department of Public Safety and to Appropriate Funds for a Pilot Transitional Housing Program. The Task Force would study educational services by Juvenile Justice, including the best structure for delivering the services, whether they provide adequate vocational training for the population; the adequacy of transitional housing for delinquent juveniles exiting youth development centers and the feasibility of providing transitional housing for juveniles exiting youth development centers with children transitioning from foster care to independent housing; whether the Tarheel Challenge program operated by the North Carolina National Guard should be expanded so that the program can be an alternative for all juvenile dispositional levels; the feasibility of providing tuition waivers in the Community College System for juveniles committed to youth development centers and in post‑release supervision status; and the adequacy of dispositional options available to Juvenile Court for status offenders.  The bill also seeks $650,000 per year to implement a pilot program for transitional housing for juveniles exiting youth development centers.  It has been referred to the House Judiciary C committee and Appropriations.  

 HB 392, Share Arrest Warrant Status/Public Assistance (Arp, Horn, Starnes, Burr).  HB 392 would require a County Department of Social Services (DSS) to conduct a criminal check on applicants and recipients of Temporary Assistance to Needy Family (TANF) Benefits or Food and Nutrition Services (FNS) Benefits; require DSS to share information with a local Law Enforcement Agency regarding any applicant or recipient who has an outstanding arrest warrant; and to deny benefits to an applicant or recipient who has an outstanding warrant for a felony or for a probation or parole violation. It has been referred to the House Health and Human Services committee.

HB 393, Essential Funding for Public Schools (Agency Bill) (Glazier, Michaux, Gill, Fisher).  HB 393 sets out a number of funding requests for the Department of Public Instruction, including a request of $1.35 million for a Special State Reserve for Children with Special Needs, to be used to increase available funds to support local school administrative units and charter schools that serve high‑cost and high‑need students with disabilities who enroll during the first 60 days of school.  It also requests funds to support the School for the Blind and the Schools for the Deaf: summer school initiative, Career Technical Education program; technology  and safety equipment for the Governor Morehead school; and preschool and Early Intervention programs.  It has been referred to the House Appropriations committee.

HB 397, Expand District Judge Eligibility (Burr, Collins, Stone, Hager).  HB 397 would allow Sheriffs, Clerks of Superior Court and Magistrates with 10 or more years of service, and law enforcement officers with 25 years of experience to serve as a District Court judge.  It has been referred to the House Rules and Judiciary committees.

HB 399, Amend Laws Pertaining to DHHS (Agency Bill) (Burr, Hollo, Avila).  HB 399 seeks to make changes requested by DHHS to laws Pertaining to Child Abuse, Neglect, and Dependency; Medicaid; and Public Health, including payment of Medicaid expenses from a recipient’s estate; and additional Medicaid providers in the limited and moderate risk categories.  It has been referred to the House Committee On Health and Human Services and Human Services, Judiciary Subcommittee C and Appropriations.

SB 361, Excellent Public Schools Act of 2013 (Berger, Tillman, Soucek).  Senate President Pro Tem Phil Berger introduced his education reform bill this week. It is very similar to last year’s Excellent Public Schools Act, which failed to pass the House (parts of the 2012 were included in the budget).  The bill consists of five major components: 1. Improving literacy by the end of the third grade; 2. Maximizing instructional time; 3. Increasing teacher accountability and ending "career status"; 4. Developing another grading system for schools; and  5. Requiring DPI to review Common Core Assessments.  It has been referred to the Senate Education committee.

SB 364, Update Electronic Prescription Rules (Brock).  SB 364 directs the Board of Pharmacy to adopt rules relating to electronic prescriptions, including requirements for HIPPA compliance; complying with the request of a patient not to send electronically a patient's prescription or information related to the patient's prescription; and a requirement that electronic prescribing software and hardware must support access to data necessary for clinical and patient decision making, including, but not limited to, adverse events and up‑to‑date formulary information, co‑pay requirements, and prescription tier information. It has been referred to the Senate Health Care committee.

 SB 368, Inmates Prescriptions/Pistol Permits (Bingham).  SB 368 seeks to implement a $10 co-pay for prescription medication dispensed in a county jail.  It has been referred to the Senate Judiciary I and Finance committees.

 

SB 374, NC Public Schools Budget Flexibility Act (Tillman, Barringer, Wade).  SB 374 would give local school districts more flexibility in how money is spent and in setting class sizes.  Under the proposed language, funds for children with disabilities may be transferred only as permitted by federal law and the conditions of federal grants.  The bill has been referred to the Senate Education and Appropriations committees.

 

Governor McCrory's Budget

Governor McCrory released his first budget yesterday. We will continue to learn more over the coming days, but here is a first look at budget provisions that affect North Carolinians with disabilities. Our state budgets on a biennial basis, so the Governor’s budget makes recommendations for the next two fiscal years, Fiscal Year 2014 (FY14) starting on July 1, 2013 and Fiscal Year 2015 (FY15) starting July 1, 2014. You can see the full budget document here. The next step in the budget process is for the General Assembly to study the Governor’s proposals and pass a budget through first the Senate then the House. While we do not expect the General Assembly to accept all of the Governor’s proposals, their total revenue predictions should match up.

Health and Human Services
FY14
$230 Million increase
FY15
$360 Million increase

General DHHS

North Carolina Families Accessing Services through Technology (NC FAST) $864,655
This is an information technology system that will provide Medicaid eligibility determinations for the coming federally facilitated Health Benefit Exchange. It will provide a ''one-stop shop'' for all services and benefits for which they may be eligible, without having to fill out multiple applications.

Department of Justice Settlement FY14 - $3,834,275 FY15 - $9,394,658
In August of 2012, North Carolina and the US Department of Justice, agreed on a plan to stop and prevent the illegal institutionalization of people with mental illness. This funding provides housing and support services under that settlement.

Medicaid

Medicaid Rebase/Reserve – There is an additional $755 Million over two years allocated for expected Medicaid expenses and reserves. This does not mean an increase in services but a prediction of costs to just maintain existing services. The Governor made it clear he plans to propose a major overhaul to Medicaid in the coming months in order to control costs going forward.
Hospital Cost Settlement –This measure reduces payments to hospitals by $74M in FY14 ($25M in state funds) and $102M in FY15 ($35M in state funds).

Hospital Assessment Retention –$60M recurring cut for hospitals.

Mental Health Drug Management – This measure requires prior authorization for mental health drugs. This will save $5.4M in state funds in FY14 and $11.3M in state funds in FY15. Similar measures have been proposed in recent years.

Adjust Medicaid Copayments – This item increases copayments from $3 to $3.90 for most services, but not for emergency services, family planning, pregnancy-related services or preventative services for children. $3.3M reduction in FY14 and $5M reduction in FY15.

Medicaid / Health Choice Transfer – In accordance with the Affordable Care Act, the Health Choice program will transfer all children under 133% of FPL to the Medicaid program. $23M increase in FY14 and $48M increase in FY15.

Medicaid Management Information System (MMIS) – FY14 $9,658,152 FY15 $1,666,625
This is a long overdue and far over-budget replacement for the state’s aged Medicaid claim payment system. The new administration has expressed a commitment to fully implementing the new system this summer.
Division of Child Development and Early Education

Use Federal Funding for State Regulatory Positions – This is a $900K reduction in state funds, but the positions will remain funded by federal block grant money.

NC Pre-K Expansion – The Governor’s budget allocates $26.2M in FY14 and FY15 to increase enrollment by approximately 5,000 at-risk four-year-olds.

NC GEAR (Government Efficiency and Reform) – McCrory directs OSBM to create NC GEAR to look at ways to make government more efficient. In his introduction to the budget, he indicates that NC GEAR will look at consolidating the state’s early education programs.

Division of Public Health

Early Intervention – The state’s Early Intervention program provides services for children 0-3 who have or are at risk for developmental delays and disabilities. The Governor proposes an $8M reduction in FY14 and FY15. In previous budget years poor management has resulted in unspent funds, but this cut still represents lost opportunities for at-risk children.

ADAP– The AIDS Drug Assistance program is reduced by $8M in FY14 and FY15. This is a substantial cut to a program that provides life-saving drugs to people who are HIV positive.

Tobacco Prevention – The Governor allocates $1M to tobacco prevention. This is a small amount compared to funding a couple of years ago, but it keeps the programs alive for now.

Division of Social Services

NC Reach – The Governor proposes an increase of $1.1M in FY14 and $1.2M in FY15 to the NC Reach program, which assists young people aging out of foster care or who are adopted after their twelfth birthday to attend a public college or university in North Carolina.

Replace 1/3 of Lost Federal of Funds with State Dollars – County DSS agencies are set to receive less federal funds, so the state is providing a nonrecurring allocation of $4.8M in FY14 and FY15.

Food Banks – This item provides $2M recurring allocation for Food Banks.

Health Choice

As noted above, children under 133% of FPL are transferred to Medicaid. However, the funding reduction for Health Choice is less than the expansion for Medicaid. $12.6M reduction in FY14 and $26M expansion in FY15.

Mental Health Drug Management – This measure requires prior authorization for mental health drugs in the Health Choice program as well. It is expected to save $277K in FY14 and $572K in FY15.

Division of Mental Health, Developmental Disabilities, and Substance Abuse
Cut to LME/MCO Administrative Funding – This item fully implements the MCO administrative model, which results in a recurring funding reduction of $15M. Several MCOs are already financially unstable, and it is likely that further cuts will necessitate consolidation or other major changes to the structure of the behavioral health managed care system.
New Broughton Hospital – This item allocates fund to build a new Broughton Hospital. $23M nonrecurring allocation in FY14 and $5.1M nonrecurring allocation in FY15.

Aging

Long Term Care Ombudsman – $200K to LTC Ombudsman each year to replace receipts and maintain current funding

Vocational Rehabilitation

Independent Living – $10K reduction to IL administrative funding


Justice and Public Safety

Courts

Drug Courts– The Governor recommends $3.3 Million in FY14 and $3.6 Million FY15 to fund these effective, efficient court programs.
Indigent Defense
Both Public Defenders and Prisoners’ Legal Services take cuts in the Governor’s budget. PDs lose $258,634 each year, while PLS loses $231,200 each year.
There is a one-time infusion of $5 Million for chronically underfunded private counsel appointments.

Division of Juvenile Justice and Delinquency Prevention

Close Richmond Youth Detention Center - $407K reduction each year.

Cut to Youth Community Programs –This is a $737K reduction each year.

Center for Safer Schools – Governor McCrory announced this effort Tuesday. It will be a clearinghouse for school safety that Local Educational Authorities can utilize as they work to make their schools more secure. $311K recurring allocation.

Public Education

FY14:
$80 Million cut
FY15:
$10 Million increase

ADM Adjustment – The Governor’s budget includes an $11.2M appropriation for FY14 and $11.8M appropriation for FY15 to handle enrollment growth in public schools. These additional funds will allow LEAs to hire 1,800 new teachers over two years.

Textbooks – This item would partially restore the recurring textbook cuts in FY14 and fully restore the cuts in FY15. $58.5M appropriation in FY14 and $76.5M appropriation in FY15.

Restore Funding for Instructional Supplies – This item partially restores nonrecurring reduction in supplies. $9.4M in FY14 and $34.9M in FY15.

Teacher Assistants – This is the most troubling aspect of the Governor’s budget. The budget would eliminate teacher assistants in the second and third grades and lowering the ratio of TAs to students in grades K-1. $177M reduction in FY14 and FY15.

Excellent Public Schools Act – This item provides funding for two provisions of the 2012 Excellent Public Schools Act that are scheduled to be implemented in FY15: Summer Reading Camps and Reading Plans for Parents. $28M expansion in FY15.

E-Readers – The Governor directs lottery funds to be used to purchase reading tablets for students, which will be awarded to schools on a competitive basis. $26M in FY14 ($9M nonrecurring) and $17M in FY15.

Charter Oversight Positions – The Governor proposes adding three positions in DPI to oversee charter schools. $320K in FY14 and FY15.

Other Departments

One note that applies to all agencies is that we do not yet know how cuts to federal funding from sequestration will affect state budget decisions. Sequestration could impact federal funding for exceptional children’s programs in schools, grants for supportive housing, and many other programs in which federal dollars flow through the state’s coffers. Stay tuned for details.

Housing Finance Agency

$32K recurring Reduction of state match to HOME program
Administration

Reduce 3 FTEs at the Human Relations Commission by consolidating staff functions

Eugenics Victims Compensation- The Governor recommends $10 million in one-time funds to compensate victims of the state’s eugenics program.

Board of Elections

Provide Maintenance of Effort funds to allow the state to access federal HAVA program funds
Office of Administrative Hearings

Appropriations to implement electronic filing and online case management system
Upgrade to Rules Review Commission (RRC) website including easier comment submission and streaming of RRC meetings

Fund three additional Administrative Law Judges (ALJs) to staff a regional office in western North Carolina and assist in processing Medicaid appeals. The additional staff will also enable the agency to implement an alternative dispute resolution process whereby a greater number of contested case litigants will gain access to an ALJ settlement conference in an effort to settle the dispute prior to a costly administrative hearing.

Legislative Update for the Week of March 11

Bill Updates

HB 109, Require Safety Helmets/18 & Under (Torbett, Speciale).  HB 109 seeks to eliminate the requirements of a safety helmet for adults on a motorcycle if (1) the operator has held a motorcycle license for more than 12 months or successfully completed the course of instruction offered by the Motorcycle Safety Instruction Program; and (2) is covered by an insurance policy providing for at least $10,000 in medical benefits for injuries incurred as a result of a crash while operating or riding on a motorcycle.  The bill was heard in the House Transportation committee last week but was not voted upon.  There was a successful amendment by Rep. Iler to raise the age from 18 to 21, based on safety concerns.  There were speakers on both sides.  The bill is scheduled again for the Transportation committee on Tuesday, March 19 at Noon.

 

SB45, Incapacity to Proceed (Randleman). SB 45 received a favorable report from the House Judiciary B committee last week.  Rep. Glazier offered two amendments in committee which were approved – one was to correct a typo, and the other made clear that the time during which a defendant is involuntarily committed to an in-patient facility counts toward the period of confinement, for dismissal purposes.  It is scheduled for its final votes on the House floor on Tuesday, March 19.

 

SB223, Severance and Relocation for Area Directors (Hise).  SB 223 seeks to amend the state statute to allow an area board of an LME to offer severance and relocation benefits to recruit an area director.  It received a favorable report from the Senate Health committee last week and has been referred to the Senate Appropriations committee.

 

New Legislation Filed this week

 HB 269, Children with Disabilities Scholarship Grants (Jordan, Brandon, Jones, Stam).  HB 269 seeks to repeal the tax credit for families of children with disabilities who send their children to a non-public school, and, instead, enact a scholarship in the same amount, $3000, for the reimbursement of tuition and special education and related services, including services provided to home schooled students. The bill seeks an appropriation of $3,670,500 for the 2013‑2014 fiscal year and $4,341,000 for the 2014‑2015 fiscal year in recurring funds - $3 mil per year for scholarship grants and a portion of the remaining amount to re-evaluate students. It has been referred to the House Education committee and Finance.

 

HB 273, Charter School/LEA Accounting of Funds (Hardister, Malone, Brandon, Stam).  HB 273 seeks to amend NCGS 115C‑238.29H(b) to require a detailed accounting and timeline for funds transferred to charter schools, with a penalty of interest if the local school administrative unit does not comply.  It has been referred to the House Education and Finance committees.

 

HB 274, Taxpayer Bill of Rights (Blust, Jones, Holloway, Starnes).  HB 274 seeks to limit increases in the state budget, including through the proposal of constitutional amendment that would limit increases to a set formula.  It has been referred to the House Government, Finance and Appropriations committees.

 

HB 287, Increase Dropout Age from 16 to 17 (Lambeth, Moffitt, Brandon, D. Ross).  HB 287 does exactly what it says – raises the dropout age to 17.  It has been referred to the House Education and Judiciary C committees.

 

HB 308, Funds/MHDDSA Services/Non-Medicaid Eligibles (Insko, Earle).  HB 308 seeks to allocate $78 mil for MH/DD/SA services specifically for individuals who are not eligible for Medicaid.  It has been referred to the House Appropriations committee.

 

HB 310, Handgun Permit Modernization Act (Jordan, Hastings, Brody, Szoka).  HB 310 seeks to amend the state law relating to a concealed handgun permit by removing the provision in NCGS § 14‑415.13 that authorizes and requires disclosure to the sheriff of any records concerning the mental health or capacity of the applicant to be used for the sole purpose of determining whether the applicant is disqualified for a permit.  Instead, the sheriff shall rely on information from the  National Instant Criminal Background Check System, which relies on information from the state related to Involuntary Commitments.  Grass Roots North Carolina, which supports the bill,  says that North Carolina’s sheriffs handle the mental health clearance arbitrarily and inconsistently now.

 

HB 317, Improve Education for Children Who Are Deaf (Blackwell, Farmer-Butterfield, Holloway, Martin)/SB 320 (Daniel, Newton).  HB 317 would mandate that the State Board of Education do at least all of the following to improve the educational outcomes for North Carolina children who are deaf or hard of hearing: (1) Develop assessment procedures and protocols to measure, at least annually or more frequently if specified in a child's IEP, the acquisition of language skills necessary for literacy using linguistically and culturally appropriate assessment tools. The results of these assessments shall be used to determine whether further support and services, if any, are needed for a child. (2) Require an IEP team to use the Comprehensive Exceptional Children Accountability System, Communication Plan Worksheet for Student Who is Deaf or Hard of Hearing, to document (i) the team's consideration of the language and communication needs of the individual child as the IEP is developed, (ii) the placement decisions made for that child, and (iii) the team's review, at least annually, of the child's placement and language and communication needs. (3) Ensure that personnel who are highly qualified in the education of children who are deaf or hard of hearing are available to meet the unique needs of each child, including interactions in the child's language and communication modality to meet academic and social goals.  (4) Develop and implement strategies to ensure that parents of a child who is deaf and hard of hearing know they are entitled to request that the child's IEP team consider placement of their child in a residential setting and, if such a request is made, that a representative from one of the two North Carolina residential/day program schools for the deaf shall be a member of the IEP team.  It also directs DHHS to make databases containing information on children diagnosed as deaf or hard of hearing available, upon request, to DPI for the purpose of tracking children who are deaf or hard of hearing.  It has not yet been referred to a committee.

 

HB 319, Dorothea Dix Lease (Burr, Avila, Cleveland, Hurley)/SB 334 (Hise, Pate, Tucker).  HB 319, if passed, would condemn the leasehold interest in the Dix property that was conveyed to the City of Raleigh.  It further specifies that any proceeds from sale or lease of the property shall be used solely for mental health treatment purposes, which the General Assembly determines under the doctrine of cy pres to be as near as may be to the purpose of its acquisition of the property for charitable purposes.  The bill does allow for the lease of a portion of the property for use as a public park, with any proceeds thereof allocated to mental health purposes.  It has not yet been referred to a committee.

 

HB 320, Medicaid Managed Care/Behavioral Health Services (Dollar, Burr).  HB 320 seeks to establish an entirely new statute governing Medicaid appeals for both recipients and providers under Managed Care. It presents a significant departure from the current appeals process, including removing the mediation process, narrowing the role and powers of OAH, and prohibits the filing of a contested case until an internal grievance procedure is followed.  It has not yet been assigned to a committee.

 

SB 267, Raise Compulsory School Attendance Age (Parmon, Graham).  SB 267 seeks to raise the compulsory school attendance age to 18.  It has been referred to the Senate Rules committee.

 

SB 278, Foster Children/Corporal Punishment Changes (Robinson, Barringer, Randleman).  SB 278 seeks to amend the corporal punishment law to exempt children in foster care (such children may not be subject to corporal punishment in their foster care placements).  It has been referred to the Senate Rules committee.

 

SB 329, UI/Some Formerly Disabled Workers Eligible (Cook).  SB 329 seeks to continue Unemployment Insurance benefits until July of this year for individuals, who prior to separation from employment due to no fault of their own, were (i) on short‑term or long‑term disability leave from the employer immediately before separation, (ii) medically released from the disability leave period after being deemed to be able to return to work with the employer and therefore no longer eligible for disability leave status with the employer, and (iii) not employed by another employer during the disability period.  It has not yet been referred to a committee.

 

SB 335, Payment of 2012-2013 Medicaid Costs (Brunstetter, Brown, Hunt).  SB 335 would authorize the state Director of Budget to make the following adjustments, in order, to cover the costs of the state Medicaid program: (1) $20.9 mil from funds not expended pursuant to the contingency funding provisions in last year’s budget; (2) $74 mil from drug rebate refunds; (3) $67 mil (min) from other projected reversions within the Department of Health and Human Services; and  (4) A maximum of $100 mil from projected reversions within State agencies other than DHHS.  It has not yet been referred to a committee.

Legislative Update for the Week of March 4

Bill Updates

HB 5, Temporary Funding/Group Homes and Special Care Units (Dollar, Burr).  HB 5 allows individuals in group homes who are no longer eligible for Personal Care Services due to the change in law and individuals in Special Care Units who have reduced Personal Care Services due to the change in law to access the $39.7 mil allocated in last year’s budget for residents of Adult Care Homes who lost Personal Care Services due to the eligibility changes.  The bill was signed into law on March 6 and is S.L. 2013-4.  It was effective when it became law and expires on June 30, 2013.

HB 109, Require Safety Helmets/18 & Under (Torbett, Speciale).  HB 109 seeks to eliminate the requirements of a safety helmet for adults on a motorcycle if (1) the operator has held a motorcycle license for more than 12 months or successfully completed the course of instruction offered by the Motorcycle Safety Instruction Program; and (2) is covered by an insurance policy providing for at least $10,000 in medical benefits for injuries incurred as a result of a crash while operating or riding on a motorcycle.  The bill would also allow adult passengers to ride without a helmet if the operator meets the above requirements and the passenger has at least $10,000 in medical benefits for injuries incurred as a result of a crash while riding on a motorcycle.  It is scheduled to be heard in the House Transportation committee Tuesday, March 12 at 12:00.

HB 120, Building Codes: Local Consistency/Exempt Cable (Hager, Brawley, Cotham, Arp).  HB 120 will require approval from the NC Building Code Council before any local unit of government may require building inspections for Residential one and two family dwellings in addition to those required by the state building code; and to change the code adoption cycle for Residential one and two family dwellings from 3 to 6 years.  HB 120 passed out of the House Regulatory Reform committee last week and was approved by the full House on Second reading today.  It is scheduled for its final House vote tomorrow, before it proceeds to the Senate.

SB 4, No NC Exchange/No Medicaid Expansion (Apodaca, Brown, Rucho).  SB 4 prohibits Medicaid expansion and a state-federal partnership health benefit exchange.  It also repeals the budget provision related to the Dept of Insurance implementing a state based health exchange; repeals budget and statutory provisions regarding powers of the Insurance commissioner to implement the ACA; and provides direction to seek federal funding (with a 90/10 match) for the NC FAST system to make Medicaid eligibility determinations for the federal Health Benefits Exchange, as long as the state match is no greater than $5 mil.  It was signed into law last week and is S.L. 2013-5.

SB 10, Boards and Commission (Apodaca, Hunt, Rabon). SB 10 has been controversial for its removal of current members of certain environmental commissions, but also for its removal of certain judicial appointments.  The Senate version eliminated the Special Superior Court Judges, but the House removed that provision, along with changes to several other sections.  The House added a provision limiting the terms of Administrative Law Judges to 4 years.  After approval in the House last week, the Senate voted not to concur with the House version and the bill has been referred to a conference committee.

SB 45, Incapacity to Proceed Amendments (Randleman).  SB 45 was approved unanimously in the Senate last week.  It has been referred to The scheduled to the House Judiciary B subcommittee, where the House version of the bill, HB 88, is scheduled to be heard on Wednesday of this week.

New Legislation Filed This Week

HB 185, Ballot Reform Act of 2013 (Jones, Martin, Conrad, Steinberg).  HB 185 proposes to eliminate straight-party ticket voting and to change the order in which party candidates appear on ballots.  It has been referred to the House Elections committee, and, if favorable, to the House Rules committee.

HB 217, Criminal Law/Procedure Amendments (Faircloth, Stam). HB 217 proposes several changes to the state criminal laws and procedures, including probation revocation hearings in district court with a right of direct appeal to the court of appeals, unrestricted resentencing hearing upon the reversal of a sentence on appellate review, amend the procedure in driving while impaired cases, and to require the courts commission to study the court jurisdiction and jury trial process for misdemeanors and other methods of improving the efficiency and administration of the justice system.  It also includes a provision that would mandate the transfer of a juvenile defendant's case to be tried as an adult in Superior Court when the juvenile is accused of a Class B1-E felony, upon motion of the prosecutor and a finding of probable cause.  It has been referred to the House Judiciary B subcommittee.

HB 235, Parents Consent Required to Quit School (Lambeth, Whitmire, Brandon, Ramsey).  HB 235 would require children to attend school until the age of 18 (raised from 16) unless they have graduated or the parent has consented after all of the following have occurred: (i) the child and the child's parent, guardian, or custodian attend a final counseling session at the school, (ii) during that session a statement to encourage the child to remain in school or to pursue educational alternatives is presented to the child and the child's parent, guardian, or custodian, and (iii) the child and the child's parent, guardian, or custodian sign the statement. The statement shall include information regarding the academic skills that the child has not yet achieved, the difference in future earning power between a high school graduate and a high school dropout, and a listing of educational alternatives that are available for the child.  The bill has been referred to the House Education committee, and the Judiciary C subcommittee.

HB 256, VA Survivors Benefits/Medicaid Eligibility (Farmer-Butterfield, Glazier, Lewis).  HB 256 will allow a deduction for Veterans Affairs survivors pension benefit when defining income for Mediciad eligibility.  It has been referred to the House Military committee, Health and Human Services, and Appropriations.

SB 125, Public Meetings/Records Laws Violations (Goolsby, Apodaca).  SB 125 would make violations of the public records and open meetings laws a Class 3 misdemeanor. It has been referred to the Senate Judiciary I committee.

SB 137, Prohibit Waiver Co-Pay/Medicaid Providers (Tillman).  SB 137 seeks to amend NCGS 108A-63 to make it unlawful for any provider of medical assistance to waive the collection of co-payments with the intent to induce recipients to purchase, lease, or order items or services from the provider, or in return for referrals or in return for purchasing, leasing, ordering, or arranging for a good, facility or service. It is not a violation if a provider waives a co-payment after determining on an individual basis that the collection of the copayment amount would create a substantial financial hardship for the recipient, provided the waiver of co-payments is not a regular business practice of the provider; or if the provider makes a good faith attempt to collect the co-payment and fails. The bill has been referred to the Senate Healthcare committee.

SB 140, Financial Exploitation of Older Adults (Bingham). SB 140 makes several recommended changes to the law to increase the recognition, reporting, and prosecution of those who defraud or financially exploit older adults, and to continue the Task Force on Fraud Against Older Adults.  It has been referred to the Senate Healthcare committee.

SB 208, Effective Operation of 1915(b)/(c) Waiver (Tucker, Barringer).  SB 208 seeks to define LME/MCOs in state statute; require the Health and Human Services Secretary to attest to the LME/MCO's compliance with state and federal laws and contracts, particularly its solvency, timeliness of provider payments, and the ability to exchange billing, payment, and transaction information with LME/MCOs and providers in a manner that complies with all applicable federal standards. If the Secretary cannot attest to these factors, then the operation of that LME/MCO must be transferred to another LME/MCO.  It has been referred to the Senate Health committee.

SB 223, Severance and Relocation for Area Directors (Hise).  SB 223 seeks to amend the state statute to allow an area board of an LME to offer severance and relocation benefits to recruit an area director.  It has been referred to the House Health committee.

Legislative Update for the Week of 2/25

Budget Update

Joint Appropriations subcommittees continued to meet last week.  The Health and Human Services subcommittee focused on mental health and intellectual/developmental disabilities last week, hearing from and about MCOs for the bulk of the meetings (handouts online here). 

Bill Updates

HB 5, Temporary Funding/Group Homes and Special Care Units (Dollar, Burr).  HB 5 allows individuals in group homes and Special Care Units who are no longer eligible for Personal Care Services due to the change in law to access the $39.7 mil allocated in last year’s budget for residents of Adult Care Homes who lost Personal Care Services due to the eligibility changes.  The House concurred in the Senate substitute this week and the bill has been sent to the Governor.

SB 4, No NC Exchange/No Medicaid Expansion (Apodaca, Brown, Rucho).  SB 4 seeks to prohibit Medicaid expansion and a state-federal partnership health benefit exchange.  The House and Senate conference committees reported their compromise this week.  The new version repeals the budget provision related to the Dept of Insurance implementing a state based health exchange; repeals budget and statutory provisions regarding powers of the Insurance commissioner to implement the ACA; and provides direction to seek federal funding (with a 90/10 match) for the NC FAST system to make Medicaid eligibility determinations for the federal Health Benefits Exchange, as long as the state match is no greater than $5 mil.  The bill has been sent to the Governor.

SB 10, Boards and Commission (Apodaca, Hunt, Rabon). SB 10 has been controversial for its removal of current members of certain environmental commissions, but it also seeks to remove certain judicial appointments.  The Senate version eliminated the Special Superior Court Judges, but the House removed that provision, along with changes to several other sections.  However, the House added a provision limiting the term for Administrative Law Judges to 4 years.  SB 10 passed its first floor vote in the House and is scheduled for its final vote this evening.  The bill is likely headed to a conference committee where the Senate and the House will need to work out the differences in the two versions of the bill.

SB 45, Incapacity to Proceed Amendmenrs (Randleman).  SB 45 was discussed in the Senate Judiciary I committee last week but was not voted upon. The committee chairs, Senators Goolsby and Newton, spoke favorably and there did not appear to be any opposition to the bill. The bill is scheduled for a vote in the committee on Tuesday, March 5. 

New Legislation Filed This Week

SB 125, Public Meetings/Records Laws Violations (Goolsby, Apodaca).  SB 125 would make violations of the public records and open meetings laws a Class 3 misdemeanor. It has been referred to the Senate Judiciary I committee.

SB 137, Prohibit Waiver Co-Pay/Medicaid Providers (Tillman).  SB 137 seeks to amend NCGS 108A-63 to make it unlawful for any provider of medical assistance to waive the collection of co-payments with the intent to induce recipients to purchase, lease, or order items or services from the provider, or in return for referrals or in return for purchasing, leasing, ordering, or arranging for a good, facility or service. It is not a violation if a provider waives a co-payment after determining on an individual basis that the collection of the co‑payment amount would create a substantial financial hardship for the recipient, provided the waiver of co-payments is not a regular business practice of the provider; or if the provider makes a good faith attempt to collect the co-payment and fails. The bill has been referred to the Senate Healthcare committee.

SB 140, Financial Exploitation of Older Adults (Bingham). SB 140 makes several recommended changes to the law to increase the recognition, reporting, and prosecution of those who defraud or financially exploit older adults, and to continue the Task Force on Fraud Against Older Adults.  It has been referred to the Senate Healthcare committee.