A BILL TO BE ENTITLED
AN ACT to increase state funding and flexibility for mental health, developmental disabilities, and substance abuse services as recommended by the joint legislative oversight committee for mental health, developmental disabilities, and substance abuse services.
The General Assembly of North Carolina enacts:
SECTION 1.  There is appropriated from the General Fund to the Department of Health and Human Services the sum of seventy‑two million eight hundred eighty‑eight thousand two hundred fifty‑nine dollars ($72,888,259) for the 2006‑2007 fiscal year to be allocated as follows:
(1)	$29,435,119 to pay for developmental therapies for the developmentally disabled. The Division shall develop rigorous care management requirements for this service.
(2)	$21,726,070 to pay for mental health services.
(3)	$21,726,070 to pay for substance abuse services.
(4)	The funds allocated under subdivisions (2) and (3) of this section shall be allocated to those area authorities and county programs where the current State service dollar allocation per capita is less than the median State service dollar per capita allocation, which is $37.65 based upon the State fiscal year 2005‑2006 allocations.
SECTION 2.  Notwithstanding G.S. 143‑23, an area authority or a county program may transfer from one age or disability category to a different age or disability category up to fifteen percent (15%) of the funds initially allocated to the age or disability category from which funds are being transferred.  Area authorities and county programs shall:
(1)	Publicly document that they have addressed the service needs of the category from which the funds are being transferred before any transfer may occur, and 
(2)	Submit the required documentation to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and to the Fiscal Research Division within 15 days of making the transfer.
SECTION 3.  This act becomes effective July 1, 2006.  Section 2 expires July 1, 2007.  The Fiscal Research Division shall track the allocation and utilization of the funds appropriated under this act.