Bill Update for the Week of May 28

Despite the holiday on Monday, the legislature still managed to pack in a very busy week. The House approved its version of the budget. Committees discussed major legislation and also voted on some pretty major policy issues. There are three sections below - Bill Updates (legislation which was acted upon this past week); New Legislation of Interest Filed this week; and a summary of the House budget passed this week.

Bill Updates

 HB 423, Adult Care Home Pilot/Buncombe County (Hurley).  HB 423 was originally filed as a bill regarding involuntary commitment.  A Proposed Committee Substitute reflecting the new title was presented in the Senate Mental Health committee this week.  The bill now directs a pilot program in Buncombe County for a more detailed assessment tool for adult care home residents and to allow the county DSS to delegate its Adult Care Home monitoring duties.  The legislation was drafted at the request of legislators from Buncombe county who have heard many complaints about a particular facility.  The Department of Health and Human Services expressed concerns at the committee meeting that the pilot program may be in direct contradiction to positions taken with regard to the DOJ investiogation involving adults with mental illness in Adult Care Homes.  DRNC has an additional concern about contracting out the monitoring duties.  The legislation was not voted upon and is scheduled to be taken up again next week.

HB 493, Landlord Tenant Law Changes (Howard, Blust, Randleman Sponsors). HB 493  modifies the section of the Landlord Tenant laws regarding rent pending execution of judgment; raises the value of personal property that may be donated or disposed of after a tenant abandons or has been ejected, and sets out a procedure for removing personal property after a tenant has died; modifies the permitted uses of the deposit; and makes small changes to the laws on vacation rentals regarding cleaning fees. A PCS was approved in the Senate Judiciary committee this week and the bill is set for final approval in the full Senate next week.

HB 947, Eugenics Compensation Program (Womble, Tillis, Parmon and Stam sponsors). This legislation seeks to provide $50,000 to verified individuals who were forcibly sterilized by the state of North Carolina. Disability Rights NC has provided input and is following this legislation to ensure that recipients who currently receive public assistance are protected to the maximum extent possible.  It was approved by the House Appropriations committee, and will now be heard by the full House before proceeding to the Senate.

HB 981, Dix Property Sale to Require GA Approval (Dollar, Burr and Hurley sponsors)/SB 833 (Pate). HB 981 prohibits the sale of the Dorothea Dix property without the approval of the General Assembly. It was heard and approved by the House Health and HUman Services committee this week.  A Section 2 was added to the bill to specify that the net proceeds of any disp[osition shallo be used to facilitate reform of the MH/DD/SA system and provide start-up and operating support for programs and services that provide more appropriate and cost-effective community treatment alternatives for individuals currently residing in state institutions.  Representative offered an amendment that states that Funds made available from the net proceeds of such a disposition shall be provided in addition to, and not supplant, appropriations for MH/DD/SAS institutions.  The bill will next be heard by the full House before proceeding to the Senate.

HB 1075, LME/MCO Governance (Dollar, Burr sponsors)/SB 875 (Pate).  HB 1075 and SB 875 suggest several changes to the laws governing the local management entities, including board structure, the ability of a county to disengage from an LME, the ability to own property and borrow money, and to keep confidential "competitive health care information."  It also proposes provisions that seek to provide continuity in guardianship for individuals who have been wards of LMEs.  Both bills were heard in committee this week, although neither was voted upon.  Both are scheduled to be heard in their respective committees next week.

 SB 795, Excellent Public Schools Act (Berger, Apodaca and Tillman).  SB 795 is SEnator Berger's much-touted eduction reform legislation.  If passed, the legislation would make changes to improve K‑3 literacy; provide literacy volunteer leave time to state employees; assign school performance grades;  adjust school calendar; fund five additional instructional days within the existing school calendar; establish an NC Teacher Corps; modify teacher Licensure Requirements;  establish merit pay for teachers; address NC Pre‑K Program Eligibility and add some funding back; and eliminate campaign financing for the Superintendent of Public Instruction.   It was approved by Senate Appropriations and Finance, and approved on 2d reading in the full Senate on Thursday.  It is scheduled for final approval in the Senate on Monday night, before proceeding to the House, where the future of the bill is quite uncertain.  

SB 810, Regulatory Reform Act of 2012 (Rouzer, Brown, Davis sponsors).  SB 810 makes various changes to the Administrative Procedures Act.  Of relevance to the work of DRNC, is the provision that extends the date by which final decision-making authority passes from the Division of Medical Assistance to the Office of Administrative Hearings to February 1, 2013, or when the waiver is granted, whichever comes first.  SB 810 received final approval from the full Senate this week after several amendments on the Senate floor were approved.  One amendment adds a provision to the power of the Administartive Law Judge to award attorneys fees in a contested case to state that the judge may award attorneys fees when it is found that the state agency has substantially prejudiced the petiotioner's rights and has acted arbitrarily or capriciously.  The bill will now proceed to the House.

 New Legislation of Interest Filed This Week


HB 1153, Standard for Charter Schools/Durham County (Luebke, Michaux, Hall).  HB 1153 seeks ti require all charter schools in Durham County to provide transportation to students, free or reduced price lunch to eligible children, and have policies for students with disabilities  that comply with federal laws including IDEA.  IT also specifies that charter schools shall not limit admission to students on the basis of intellectual ability, measures of achievement, or  measures of aptitude. It has been referred to the House Education committee.


HR 1191, Resolution of Disapproval of Reorganization (Cleveland).  HB 1191 seeks to disapprove the portion of Executive Order 85, issued last year by the Governor, that ordered the merger and reorganization of several government departments and divisions, including the merger of Vocational Rehabilitation, Services for the Blind and Deaf and Hard of Hearing.  It has been referred to the House Judiciary C committee.


HB 1196, Albemarle Health Center Property (Owens). The bill seeks to allow the Director of the Division  of MH/DD/SAS to wind up the affairs of the Albemarle Mental Health Center by entering into any necessary interlocal agreements and conveying its interests in real property in Camden, Currituck, and Perquimans Counties to East Carolina Behavioral Health (ECBH) as provided in the consolidation agreement between AMHC, ECBH, and the 10 counties in the catchment area.  It has been referred to the House Government committee.


SB 928, Repeal/Streamline DPI Reporting Requirements (Tucker).  SB 928 seeks to remove a number of public school reporting requirements, including reports on school discipline and school violence.  It has not yet been referred to a committee.

Budget Update


The House passed its version of the budget this week.  The biggest news on disability rights issues is the inclusion of $10.3 million to support DHHS in its plan for transitioning individuals with severe mental illness and severe and persistent mental illness into community living arrangements, including establishing a rental assistance program.  If the State executes an agreement with the U.S. Department of Justice (USDOJ) in response to USDOJ findings dated July 28, 2011, these funds may be used to implement the requirements of the agreement.  In the DRNC press release, Executive Director Vicki Smith stated “While ten million dollars is certainly not enough to solve the crisis of institutionalization identified by the Department of Justice, it is a step in the right direction.”


However, the bill allocates another $39.7 million to assist Adult Care Homes to transition into a "key component of the State’s Transitions to Community Living Initiative." DRNC urged lawmakers to devote more funds directly to assisting individuals with mental illness as they move to more integrated settings. “Sending tens of millions in taxpayer dollars to institutions is no way to solve our state’s institutionalization problem,” said Smith.

The House budget also proposes a short-term commission to study and recommend improvements to the State’s system of care for adults with mental illness and developmental disabilities. “While we applaud the attention given to these underserved populations, we are disappointed that the commission membership includes representatives from the adult care home industry, which does not provide mental health services. Any providers included in the commission should be those experienced with the delivery of community-based services, including mental health care. The inclusion of the ACH industry in the required membership is inappropriate and will only slow efforts at de-institutionalization,” said Smith. 

Below is a department-by-Department summary of the House budget:

Health and Human Services

Div of Medical Assistance (Medicaid)

• NO changes to optional services or provider rates.
• Medicaid Rebase $168 mil for increased enrollment and consumption
• $55 mil in Medicaid non-recurring liabilities
• CCNC Savings $60 mil reduction - total of $200 mil reduction over the two years.
• 1915 b/c waiver - increases savings to be achieved through expansion by $630K
• Fraud, waste and abuse detection and prevention - $3.8 mil savings
•  Restructure fee for service - $2 mil savings
• Pharmacy improvements savings of $6.7 mil pricing for hemophilia drugs, prior authorization, lower dispensing fees)
• CCNC Home health initiatives - CCNC will manage - $4.5 mil in savings, in Medicaid and CCNC budgets
•  $1 mil savings for non-emergency medical transportation, going to do an RFP for management of
• Medicaid Therapies Limit - repeals the provision in last year's budget to eliminate or limit adult physical therapy, occupational therapy, and speech therapy visits to three visits per calendar year.
• COLA disregard - enacts an income disregard for federal cost of living adjustments (COLA).  DRNC has long supported this action and is thrilled at its inclusion.  DHHS stated that 9200 people lost benefits this year because of COLAs. 
• Modify and improve Pharmacy Services - must achieve savings of $30 million.
• Smart Card Pilot program - prevents the department from rolling out statewide
• Inpatient Psych Beds or bed days - 91 additional beds
• Examination of the state's delivery of mental health services - to examine how mental health services are delivered and look at geographic areas for state

Div Central Management

• Admin efficiencies $1 mil reduction
• $1.5 mil reduction for vacant positions - directed to minimize the elimination of positions  
• Non state entity pass-through funds - makes recurring funds to nonprofits including Arc, Easter Seals and Autism Society non-recurring and adding a 10% match requirement

Aging

• Increase HCBG block grant funding $1.5 mil, services for 1100 persons

DMH/DD/SAS

• $10 mil NR reduction continues to LME community services funding (was $20 mil)
• $18.1 mil for three way contracts; did not include language to fund existing beds
• $8.5 mil reduction for LME admin
• $3.5 mil for Cherry - ongoing operating costs for new Cherry hospital, 125 more beds
• $3.5 mil for Broughton - open 19 beds at Broughton (58 positions, Recurring)
• $2.3 reduction to Drug Treatment Courts since JPS eliminated last year
• Eliminates $200K to MHA that was still in the budget

Div of Public Health 

• $5.5 mil for tobacco cessation
• County health department funds for community health and wellness initiatives that promote healthy behaviors (incl smoking cessation) - $8.5 mil 
• $375K for ECU High Risk Maternity Clinic

Division of Child Development and Early Education

• Replace $4 mil in Smart Start funds with federal block grant funds
• $15 mil increase for NC PreK, will fund an additional 1,765 students (restores less than half of last year's cuts)
• NC Partnership for Children  $3.5 mil restoration for literacy pilot, development consultants and rural partnership assistance

Justice and Public Safety

• Shift inmate medical costs to Medicaid $2 mil.  Will pay state portion.
• Close Edgecombe YDC $1.7 mil reduction - there many unsuccessful attempts to amend this provision
• Consumer Protection section of AG’s office to become 100% receipt supported.  $1.7 mil reduction.
• No changes to IDS
• Restores $2.9 mil R appropriation to family court
• Repeal requirement regarding the staffing treatment model at the YDCs
• $550K shall be used for multipurpose group home in Craven County
• Itemized billing for legal services provided by AG’s office to state agencies
• Biannual reporting on DOJ attorney activity

Education Appropriations

• Provides funding to restore 66.3% of the LEA Adjustment.
• $900K for Teach for America
• $5.15 mil to keep all three residential schools open
• Eliminates state subsidy to UNC hospitals - $44 mil recurring
• School Improvement Plans at Residential Schools reinstated
• Residential Schools: DPI can’t transfer any school-based personnel from the residential schools to central office administrative positions; and proceeds from rental of campus buildings shall be used for operation of schools and not DPI administrative functions

General Goverment

• Reduced general fund appropriations to Housing Trust Fund by $4.3 mil, to be offset by mortgage settlement
• Clarifies that HAVA Funds to improve voting accessibility for the disabled may be expended
• PED to study Human Relations Commission and Civil Rights Div of OAH