AN ACT to strengthen the oversight role of the joint legislative oversight committee on mental health, developmental disabilities, and substance abuse services; to repeal the legislative study commission on mental health, developmental disabilities, and substance abuse services; to direct the oversight committee to study certain issues; and to make a recommendation regarding increasing health care coverage to include mental health and substance abuse services as recommended by the joint legislative oversight committee on mental health, developmental disabilities, and substance abuse services.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 27 of Chapter 120  of the General Statutes is amended by adding a new section to read:
"§ 120‑244.  Committee authority.
The Committee may obtain information and data from all State officers, agents, agencies, and departments, while in discharge of its duties, under G.S. 120‑19, as if it were a committee of the General Assembly. The provisions of G.S. 120‑19.1 through G.S. 120‑19.4 shall apply to the proceedings of the Committee as if it were a committee of the General Assembly. Any cost of providing information to the Committee not covered by G.S. 120‑19.3 may be reimbursed by the Committee from funds appropriated to it for its continuing study."
SECTION 2.  Article 23 of Chapter 120 of the General Statutes is repealed.
SECTION 3.  The Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services (LOC) shall study the following issues and report its findings and recommendations to the 2007 Regular Session of the 2007 General Assembly:
(1)	Mechanisms to allow area authorities and county programs to purchase bed days from the State psychiatric hospitals. The LOC shall consider options for holding area authorities and county programs accountable for their use of State psychiatric institutions, provide incentives to increase community capacity, and options for ensuring the State institutions have a sufficient funding stream to ensure quality care to patients and a stable and well‑qualified workforce.
(2)	Whether implementation of a Medicaid 1915(b) waiver on a statewide or expanded local basis would strengthen the ability of area authorities and county programs to manage the mental health, developmental disabilities, and substance abuse system. As part of the study, the LOC shall examine the impact of the waiver on Piedmont Behavioral Health's ability to implement its management functions including utilization management for Medicaid services, consumer satisfaction, provider monitoring, use of best practices, and any other matters the LOC determines are relevant. If the LOC determines that a Medicaid 1915(b) waiver would improve the management capacity of area authorities and county programs, it shall also examine whether it would be more appropriate to seek a statewide waiver or whether it would be both possible and advisable for additional area authorities and county programs to seek individual waivers.
(3)	Whether G.S. 122C‑147.1 should be amended to modify or repeal the provisions that place funds appropriated by the General Assembly into broad age and disability categories.
SECTION 4.  The Joint Legislative Corrections, Crime Control and Juvenile Justice Oversight Committee and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services (LOC) shall study drug treatment courts in North Carolina.  The study shall include the following issues in relation to drug treatment courts:
(1)	Funding mechanisms;
(2)	Target populations;
(3)	Interagency collaboration at the State and local levels; and
(4)	Any other matter that the Commissions deem appropriate or necessary to provide proper information to the General Assembly on the subject of the study.
The Commissions may report their findings and recommendations to the 2007 Regular Session of the 2007 General Assembly.
SECTION 5.  The act is effective when it becomes law.
In the General Assembly read three times and ratified this the 22nd day of June, 2006.

	s/	 Beverly E. Perdue
	 President of the Senate

	s/	 James B. Black
	 Speaker of the House of Representatives

	s/	 Michael F. Easley
	 Governor

Approved 12:50 p.m. this 29th day of June, 2006