A BILL TO BE ENTITLED
AN ACT TO APPROPRIATE FUNDS TO THE Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, TO PROVIDE FOR A PILOT PROJECT TO ASSESS THE FEASIBILITY OF ENACTING MENTAL HEALTH SERVICES TRANSFORMATION TO A COMPREHENSIVE BEST PRACTICE SERVICE IN RURAL COMMUNITIES.
Whereas, northeastern North Carolina is the State's most economically distressed region; and
Whereas, the Albemarle Region covers 3,339 square miles, has only 58 persons per square mile, and includes many remote communities that need immediate attention to successfully participate in the State's Mental Health Reform efforts; and
Whereas, the State is faced with a historical funding base that is not equitably distributed leaving some counties with greater need that is relatively underfunded due to low population density and indigent communities status; and
Whereas, mental health, developmental disabilities, and substance abuse services cannot be equitably applied statewide as long as the funding allocation process continues and the rural communities in northeastern North Carolina do not have the resources to address issues such as best practice community services; and
Whereas, rural low‑wealth counties tend to over‑utilize State institutions for mental health, developmental disability, and substance abuse services; and
Whereas, in order to appropriately plan for improvement in the State's Mental Health, Developmental Disabilities, and Substance Abuse Services System, decisions must be made on what can reasonably be funded and managed over the next five years; and
Whereas, the State must establish a priority for the System changes it desires, starting first with those things that save resources and promote good care; and
Whereas, affordable, available, and sustainable MH/DD/SA services remains a challenge for all counties in North Carolina, especially remote and rural low‑wealth communities; and
Whereas, because of the investment required and profitability being based on population and demand, a determination must be made whether an alternative business structure for the management and delivery of services, versus the present governmental structure, provides the best solution for all citizens of this State; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.(a)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (MH/DD/SA), the sum of one million four hundred ninety‑two thousand dollars ($1,492,000) for the 2007‑2008 fiscal year, and the sum of one million nine hundred thirty thousand dollars ($1,930,000) for the 2008‑2009 fiscal year.  These funds shall be allocated as nonunit cost reimbursement funds for the Albemarle Local Management Entity (LME) to design and implement the business structure for a five‑year pilot program.  The purposes of the pilot program are to assess the affordability and sustainability of an alternative business model for the management and delivery of best practice mental health, developmental disabilities, and substance abuse services in remote, rural, low‑wealth communities.  The business model shall address issues of initial investment and profitability in attracting providers on a sustained basis.  
SECTION 1.(b)  The Albemarle LME may enter into agreements with the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, regarding integration of funding resources as it may relate to decreasing categorical restrictions or negotiating capitation formulas, incentives, and penalties, State reporting requirements, and other State law and policies that may impede the full realization of a cost effective business model for the growth and delivery of MH/DD/SA services in the pilot areas.
SECTION 2.(a)  Funds appropriated in this act that are unexpended and unencumbered at the end of each fiscal year shall not revert to the General Fund but shall remain with the Department of Health and Human Services to be used for the purposes of this act.
SECTION 2.(b)  The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall report annually to the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services (Oversight Committee) on the implementation and evaluation of the progress of the pilot program.  The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall make its final report to the Oversight Committee on or before March 1, 2013.
SECTION 3.  This act becomes effective July 1, 2007, and expires July 1, 2012.