GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 342

Short Title:  GPAC/DHR Organization.	(Public)
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Sponsors: (by request) Representatives H. Hunter, Blue, Barnes, Diamont, Hackney, Hensley, G. Miller, Nesbitt, and Robinson.
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Referred to:  Appropriations.
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February 25, 1993

A BILL TO BE ENTITLED
AN ACT TO IMPLEMENT THE RECOMMENDATIONS OF THE GOVERNMENT PERFORMANCE AUDIT COMMITTEE REGARDING THE ORGANIZATION AND STAFFING OF THE DEPARTMENT OF HUMAN RESOURCES.
The General Assembly of North Carolina enacts:
––-TWENTY POSITIONS ELIMINATED/DHR.
Section 1.  (a)	The General Assembly finds that a well-structured organization can operate with a managerial/supervisory span of control of between three and six positions.  A higher supervisor-to-staff ratio that occurs from narrow spans of control can result in increased operating costs, and the creation of a middle layer of management that can impede organizational efficiency.  The General Assembly further finds that 20 positions in the Secretary's Office, many of which are managerial/supervisory positions, have three or fewer positions directly reporting to them, and involve one-to-one reporting requirements.
(b)	The 20 excess positions in the Office of the Secretary of the Department of Human Resources that have three or fewer positions reporting to them are eliminated.  These positions are in the following organizational units of the Secretary's Office:
Office of Governmental Liaison Services
Council on Developmental Disabilities
Division of Information Systems
Division of Economic Opportunity
Division of Public Affairs
Division of Personnel Management Services
Division of Budget and Analysis
Office of the Controller
The Secretary of the Department of Human Resources shall identify those 20 positions to be eliminated in accordance with the finding in subsection (a) of this section and with this subsection.
(c)	After identifying the positions to be eliminated by subsection (b) of this section, the Secretary of Human Resources shall combine the Office of Government Liaison Services and the Office of Public Affairs into an Office of External Affairs, under a director whom the Secretary shall appoint.  This director shall report directly to the Secretary.
(d)	The base budget of the Department of Human Resources is reduced by six hundred six thousand dollars ($606,000) for the 1993-94 fiscal year and by six hundred six thousand dollars ($606,000) for the 1994-95 fiscal year due to the implementation of this section.
(e)  This section becomes effective July 1, 1993.
––-ASS'T. SEC. POS. ELIM./DHR.
Sec. 2.  (a)	The General Assembly finds that an efficient organization has minimal layers of management to ensure that there are clear lines of communication throughout the organization structure, to facilitate organizational structure, and to facilitate organizational decision-making efficiency.  The General Assembly further finds that there are three Assistant Secretary positions in the Department of Human Resources that are not performing the functions that their titles imply but, in effect, represent an unneeded layer of management in the Department.
(b)	The positions of Assistant Secretary for Budget and Management, of Assistant Secretary for Administration and Liaison Services, and the Assistant Secretary for Aging are eliminated.  The Secretary of Human Resources shall ensure that the organizational units within the span of control of these assistant secretaries are reorganized so as to report directly to the Secretary or Deputy Secretary or to be moved into the appropriate program divisions.
(c) G.S. 143B-181.2 is repealed.
(d)	The base budget of the Department of Human Resources is reduced by eighty-nine thousand dollars ($89,000) for the 1993-94 fiscal year and by eighty-nine thousand dollars ($89,000) for the 1994-95 fiscal year due to the implementation of this section.
(e)  This section becomes effective July 1, 1993. 
––-DHR FTE POSITIONS ELIMINATED.
Sec. 3.  (a)	The General Assembly finds that there are approximately 26 positions in the Department of Human Resources that are considered excessive because of narrow spans of control or having fewer than three positions reporting to them, because of duplicate work being performed by similar positions, because of performance of unnecessary functions, or because of a level of work load that does not justify a full-time position.  The General Assembly further finds that an additional 12 positions are considered excessive because they represent an additional layer of management or supervision that is not warranted.
(b)	The 38 positions in the Department of Human Resources that involve excessive layers of management, excessively narrow spans of control, or having fewer than three positions reporting to them, overlapping functions, or unnecessary positions are eliminated.
The Secretary of Human Resources shall identify the positions to be eliminated as indicated in this subsection.
The 26 positions that are considered excessive because of narrow spans of control, duplicate work being performed by similar positions, performance of unnecessary functions, or level of work load that does not justify a full-time position shall be identified for elimination from the following divisions and organizational units:
(1)	Division of Mental Health, Developmental Disabilities, and Substance Abuse Services:
a.	Quality Improvement Section;
b.	Alcohol and Drug Abuse Section;
c.	Developmental Disabilities Section;
(2)	Division of Personnel Management Services:
a.	Operations Section;
(3)	Division of Youth Services:
a.	Community Services;
b.	Institutional Services;
(4)	Division of Social Services:
a.	Information Systems;
b.	Regional Administration;
c.	Child Support Enforcement;
d.	Employment Programs;
e.	Public Assistance;
f.	Children's Services; and
(5)	Division of Vocational Rehabilitation:
a.	Staff Development;
b.	Support Services;
c.	Administrative Services;
d.	Planning and Evaluation Services.
(c)	The 12 positions that are considered to be excessive because they represent an additional layer of management or supervision that is not warranted are to be identified for elimination from the following divisions and organizational units:
(1)	Division of Mental Health, Developmental Disabilities, and Substance Abuse Services:
a.	Mental Health Section;
b.	Alcohol and Drug Abuse Section;
c.	Developmental Disabilities Section;
d.	Willie M Services Section;
(2)	Division of Social Services:
a.	Child Support Enforcement;
b.	Employment Programs; and
c.	Public Assistance.
(d)	The base budget of the Department of Human Resources is reduced by one million one hundred fifty thousand dollars ($1,150,000) for the 1993-94 fiscal year and by one million one hundred fifty thousand dollars ($1,150,000) for the 1994-95 fiscal year due to the implementation of this section.
(e)  This section becomes effective July 1, 1993.
––-DHR DECENTRALIZATION.
Sec. 4.  (a)	The General Assembly finds that a Cabinet Secretary's Office should act as a policy and administrative oversight function and should rarely if ever be directly involved with program service delivery.  There should, generally, be no programmatic functions located in the Secretary's office and all pertinent functions should be decentralized and performed at the program division level.  The General Assembly further finds that a considerable number of programmatic functions is currently inappropriately placed in the Office of the Secretary of the Department of Human Resources.
(b)	The following programmatic functions are transferred from the Office of the Secretary of the Department of Human Resources to the specified divisions:
(1)	The Division of Economic Opportunities, which administers grant programs that provide opportunities for low-income individuals and families, to the Division of Social Services;
(2)	The Council on Developmental Disabilities, which is a federal program designed to assist states in developing and implementing plans for the developmentally disabled, to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services;
(3)	The North Carolina Interagency Coordinating Council, which provides the necessary management and interagency coordination for the planning, development, and evaluation of services to developmentally disabled and at-risk infants, the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services;
(4)	The volunteer services provided by the Office of Volunteer Development Services, to the respective program divisions being served; and
(5)	Effective July 1, 1995, when the program is fully operational, the Director of Family-Centered Services, which is a newly created program that provides policy and resource coordination among the various divisions within the Department of Human Resources to strengthen family-centered services, to the Division of Social Services.
(c) The position of Special Assistance for Education in the Office of the Secretary of the Department of Human Resources is eliminated and its position responsibilities are transferred to the Deputy Secretary of the Department of Human Resources.
(d)	All of the powers, duties, and functions of the Office of Rural Health and Resource Development are transferred from the Department of Human Resources to the Department of Environment, Health, and Natural Resources.  This transfer shall include all elements of a Type I transfer, as defined in G.S. 143A-6.
(e)  Effective upon the transfers mandated by subsection (b) of this section being effected, the following organizational units in the Department of Human Resources shall report to the Secretary:
(1)	Deputy Secretary;
(2)	DHR Counsel/Office of Legal Affairs;
(3)	Office of External Affairs;
(4)	Division of Information Systems;
(5)	Division of Personnel Management Services;
(6)	Division of Budget and Analysis; and
(7)	Office of the Controller.
(f) Effective upon the transfers mandated by subsection (b) of this section, the program divisions shall report to the Deputy Secretary.
(g)  The base budget of the Department of Human Resources is reduced by two hundred forty-three thousand dollars ($243,000) for the 1993-94 fiscal year and by two hundred forty-three thousand dollars ($243,000) for the 1994-95 fiscal year due to the implementation of this section.
(h)  The base budget of the Department of Environment, Health, and Natural Resources is reduced by ––- for the 1993-94 fiscal year and by –– for the 1994-95 fiscal year due to the transfer of the budget of the Office of Rural Health and Resource Development.
(i)  This section becomes effective July 1, 1993.
––-DHR UNIT REORG.
Sec. 5.  (a)	The General Assembly finds that, if organizational units within departments are misplaced, vital fiscal and human resources are wasted in unnecessary management positions and in excessive coordination of services.  The General Assembly further finds that several organizational units and positions are organizationally misplaced in the Department of Human Resources.
(b)	All of the powers, duties, budget, and functions of the Charitable Solicitation Unit of the Division of Facility Services, Department of Human Resources, are transferred to the Department of Justice, Office of the Attorney General, Consumer Protection Section.  This transfer has all the elements of a Type I transfer, as defined in G.S. 143A-6.
(c) G.S. 131C-3(3) and G.S. 131C-3(10) are repealed.
(d) G.S. 131C-3(5) reads as rewritten:
"(5)	 'Department' means the Department of Justice."
(e) G.S. 131C-4(a) reads as rewritten:
"(a)	Any person who solicits charitable contributions shall apply for and obtain an annual license from the Department.  A person who is authorized to solicit on behalf of a licensed or exempt person is not required to obtain a license under this section."
(f) G.S. 131C-7(a)(6) reads as rewritten:
"(6)	A copy of a financial statement in a consolidated report audited by an independent public accountant for the person's immediately preceding fiscal year or, if none, for the present fiscal year or part thereof; provided that if total support and revenue exceeds two hundred fifty thousand dollars ($250,000) for the fiscal year or part thereof, the report shall be audited by a certified public accountant. Information as to the total support and revenue and all of the fund-raising activities including the balance sheet, kind and amounts of funds raised, costs and expenses incidental thereto, allocation or disbursement of funds raised, changes in fund balances, notes to the audit and the opinion as to the fairness of the presentation by the accountant shall be included. This report shall conform to the accounting and reporting procedures established by the Attorney General. The Attorney General shall adopt rules for simplified reporting by persons whose total support and revenue is one hundred thousand dollars ($100,000) or less."
(g) G.S. 131C-8(a) reads as rewritten:
"(a)	An application for licensure shall be in writing, verified under oath or affirmation and shall contain such information as specified in G.S. 131C-7 as the Attorney General shall require. In addition, the application shall contain:
(1)	The name and address of all officers, employees and agents;
(2)	The name and address of all persons who own a ten percent (10%) or more interest in the applicant; and
(3)	A description of any other business conducted by the applicant or any person who owns a ten percent (10%) or more interest in the applicant."
(h) G.S. 131C-9(a) reads as rewritten:
"(a)	An application for licensure under G.S. 131C-4 or 131C-6 shall be accompanied by a fee not to exceed one hundred dollars ($100.00) in accordance with a fee schedule established by the Attorney General."
(i) G.S. 131C-10 reads as rewritten:
"§ 131C-10. Bond.
An applicant under G.S. 131C-6 shall, at the time of making application, file with and have approved by the Department a bond in which the applicant shall be the principal obligor in the sum of twenty thousand dollars ($20,000) with one or more sureties satisfactory to the Department, whose liability in the aggregate as such sureties will at least equal the said sum; and the applicant shall maintain said bond in effect so long as the license is in effect. The bond shall run to the State for the use of said bond for any penalties and to any person who may have a cause of action against the obligor of the bond for any losses resulting from the obligor's conduct of any and all activities subject to this Chapter or arising out of a violation of this Chapter or any rule of the Attorney General. A bond shall not be required of any applicant who does not personally receive any of the contributions collected and who does not personally handle any of the contributions expended. In lieu of the bond required under this section, an applicant may submit a certificate of deposit in the amount of twenty thousand dollars ($20,000) that is either payable to the State and unrestrictively endorsed to the Department; or in the case of a negotiable certificate of deposit, is unrestrictively endorsed to the Department; or, in the case of a nonnegotiable certificate of deposit, is assigned to the Department in a form satisfactory to the Department.  Access to the certificate of deposit in favor of the State is subject to the same conditions as for a bond under this section and shall extend for a period not less than four years after the licensee ceases activities that are subject to this Chapter.  The Department shall deliver to the State Treasurer certificates of deposit submitted under this section."
(i1) G.S. 131C-12 reads as rewritten:
"§ 131C-12. Rule-making authority.
The Attorney General shall adopt rules necessary for the implementation of this Chapter and to prevent false and deceptive statements and conduct in the solicitation of charitable contributions."
(j) G.S. 131C-13 reads as rewritten:
"§ 131C-13. Fiscal records.
Any person subject to licensure under this Chapter shall maintain accurate fiscal records in accordance with rules adopted by the Attorney General."
(k) G.S. 131C-18 reads as rewritten:
"§ 131C-18. Duty of Attorney General to investigate.
The Attorney General shall investigate, from time to time, the activities of all persons soliciting charitable contributions in this State, which are or may in his opinion be subject to this Chapter, or which have or may have violated the provisions of this Chapter. Such investigation shall be with a view of ascertaining whether this Chapter is being or has been violated by any such person, and if so, in what respect, with the purpose of acquiring such information as may be necessary to enable the Attorney General to grant or deny an application for licensure, to revoke a license, to seek an injunction against any person, or to take any other action pursuant to this Chapter."
(l) G.S. 131C-19 reads as rewritten:
"§ 131C-19. Power to compel examination.
In performing the duty required in G.S. 131C-18, the Attorney General may, at all times, to require the officers, agents or employees of any person soliciting charitable contributions in this State and all other persons having knowledge with respect to the matters and activities of such persons, to submit themselves to examination, and produce for inspection any of the books and papers of any such persons, or which are in any way connected with the business thereof; and the Attorney General may administer oath to any person under examination.   The Attorney General may apply to any justice or judge of the appellate or superior court divisions, after five days notice of application, for an order on any person under examination to appear and be examined, and disobedience of such order shall constitute contempt, and shall be punishable as in other cases of disobedience of a proper order of such judge."
(m) G.S. 131C-21 reads as rewritten:
"§ 131C-21. Injunction.
If any person shall violate or threaten to violate any provision of this Chapter, the Attorney General may institute an action in the Superior Court of Wake County for injunctive relief against such violation or threatened violation."
	(n) Rules adopted by the Social Services Commission regulating the Charitable Solicitation Act remain in effect until rewritten or repealed by the Attorney General.
(o) This section becomes effective October 1, 1993, and applies to charitable solicitations required on or after that date.
(p)  All of the powers, duties, and functions of the Employee Assistance Program (EAP) Branch, Department of Human Resources, that are responsible for identifying troubled employees throughout the Department of Human Resources and assisting them to find personal counseling help or to access the appropriate referral resources and that also assist the area mental health programs through promotion, training, and support of area EAP procedures, are transferred to the Division of Personnel Management Services in the Office of the Secretary.
(q)  All of the powers, duties, and functions of the Adult Services Branch/Controlled Substance Regulatory Unit, Department of Human Resources, that is responsible for implementing the regulatory responsibilities of the North Carolina Controlled Substance Act and that does licensing and inspection of drug-related facilities in order to prevent legitimately manufactured, distributed, or dispensed controlled substances from being delivered into the illicit market, are transferred to the Division of Facility Services.
(r)  The Computer Systems Analyst IV position in the Division of Vocational Rehabilitation, Department of Human Resources, is transferred to the Division's Administrative Services Section for better coordination in implementing the Division's computer system.
(s)  The Staff Development Specialist position located in the Program Operations and Support Section of the Division of Vocational Rehabilitation, Department of Human Resources, is transferred to the Division's Administrative Services Section to eliminate fragmentation of the computer program automation function.
(t)  This section becomes effective July 1, 1993.