Legislative Update for the Week of June 4

It was another very busy week at the North Carolina legislature.  A bill setting the date for adjournment as June 19 was filed in the Senate.  In line with that date, the Senate set Friday, June 8 as the last day for policy committee meetings in order to focus on the budget.  Comments from the House leadership that they are also hoping for an adjournment during the week of June 18 are in line with the Senate date.  The Senate will vote on its budget in the full Appropriations committee on Tuesday.  Stay tuned for a budget update this week.


Bill Update


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.  The bill was approved by the full House this week 86-31 with an amendment to move the cutoff date for recipients from March 2010 to the day bill the bill was introduced, May 16, 2012.  This will leave out 2 identified individuals who have died since March 2010.  The future of the bill in the Senate is uncertain.  It has been referred to the Senate Judiciary II committee, which will likely not be meeting again. The Senate may include a modified version in the budget.


HB 966, Teacher Prepayment, Clarify Eligibility for the NC PreK Program (Holloway, Johnson, Blackwell, Hilton sponsors).  The House approved HB 966 this week hours before oral arguments on the Leandro case.  The bill states that the Division of Child Development and Early Education shall create income eligibility requirements that do not exceed 75% of state median income, which is the current eligibility limit. This is a positive step in light of the efforts last spring to reduce income eligibility to the Federal Poverty Line. Additionally, the bill clarifies that at least 80% of the children served by the program must meet income requirements, while the other 20% can be eligible for other reasons. This provision clarifies unclear language in last year’s budget that seemed to state that at-risk children should only constitute 20% of the program’s participants.  

HB 981, Dix Property Sale to Require GA Approval (Dollar, Burr and Hurley sponsors). HB 981 prohibits the sale of the Dorothea Dix property without the approval of the General Assembly, specifies that the net proceeds of any disposition shall 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.  It also 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 received unanimous approval in the House this week.  The bill has been referred to the Senate Finance committee.

HB 1075, LME/MCO Governance (Dollar, Burr sponsors).  HB 1075 suggests 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.  It was approved by the full House this week and also cleared the Senate Mental Health committee.  The Proposed Committee Substitute approved in the Senate committee added a new section to the bill that creates a new Part 2B governing Behavioral Health Authorities, an entirely new entity under the law.  As of now, only PBH would qualify as a behavioral health authority (must have been an MCO for at least three years) - the bill provides for a different board structure and, different duties of directors and of the entity.  The PCS also allowed an exemption for Medicaid appeals from the current state law process.  DRNC strongly objected to this provision and an amendment removing the provision was approved.  The bill will next be considered by the full Senate.  If approved, the bill will need to go back to the House for consideration of the changes.  Because the added section is such a major change, it is probable that the House will not concur in the committee substitute, and differences will be worked out in conference.

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.  The bill was approved by the Judiciary C committee this week but has not yet been calendared for a vote of the full House.  To disapprove an Executive Order, only one chamber need act.

SB 434, Raise the Age (Avila and Lewis).  After long wait, the Raise the Age bill (SB434) was heard in the House Judiciary A Committee this week.  This version of the bill is a phased-in approach beginning in 2016; applies to misdemeanor offenses only; and only applies if accused has no prior felony convictions.  Judge Marcia Morey, Chief Frank Palumbo and Action for Children’s Brandy Bynum all testified in favor of the bill. The bill’s primary sponsors, Rep. David Lewis and Rep. Marilyn Avila, made a strong and articulate case for the bill as well. Unfortunately, Committee Chairman John Blust decided not to take a vote on the bill and said that he would need to be instructed by House leadership to initiate further action.  At this point, it’s unclear if that will happen.

 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.   The bill was approved by the full Senate this week.  There are rumors that the bill may be included in the final budget. It has been referred to the House Education committee.

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 passed the full Senate this week and will now proceed to the House.  It has been referred to the House Commerce committee.

SB 851, Boards and Commissions Efficiency Act of 2012 (Brown, Rouzer, Soucek sponsors).  SB 851 seeks to downsize or eliminate dozens of boards and commissions.  The bill was heard in the Senate Program Evaluation committee, where it was extensively modified.  We are happy to report that the following committees that were proposed for elimination were removed from the bill altogether: Governor's Council on Aging, Consumer and Advocacy Advisory Committee for the Blind, and the Interagency Coordinating Council of Children from Birth to Five with Disabilities and their Families.  The NC Brain Injury Advisory Council, which had been proposed for elimination, will continue operating until 2019.  The proposed downsizing of the North Carolina Council on Developmental Disabilities was removed.  The Commission for MH/DD/SAS will still be downsized but to a lesser extent.  Finally, the Governor's Crime Commission was renamed the North Carolina Crime Commission, and downsized from 38 to 24 voting members.  It has been referred to the Senate Finance committee.