A BILL TO BE ENTITLED
AN ACT to Direct a Study of Direct Care Worker Wages and Benefits to examine ways to Reduce Turnover and address the Anticipated direct Care Worker shortage resulting from increased demand from aging baby boomers, as recommended by the North Carolina Study Commission on Aging.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  The Division of Health Service Regulation, Department of Health and Human Services, shall coordinate a study of direct care worker wages and benefits and the impact these have on the supply of prospective employees and employee turnover.  The study shall include representatives from the Division of Health Service Regulation, Division of Aging and Adult Services, and the Division of Medical Assistance, Department of Health and Human Services; the Labor Market Information Division, Employment Security Commission; the North Carolina Board of Nursing; the Direct Care Workers Association of North Carolina; the North Carolina Medical Society; the North Carolina Health Care Facilities Association; the North Carolina Hospital Association; the Association for Home and Hospice Care of North Carolina; the North Carolina Assisted Living Association; the North Carolina Association of Long Term Care Facilities; and the North Carolina Association of Non‑Profit Homes for the Aging. 
SECTION 1.(b)  Consistent with Recommendation 3 contained in the report on S.L. 2010‑69, the study shall focus on wages and benefits paid to direct care workers and ways to increase the supply of direct care workers and to reduce turnover rates.  The study shall examine, but is not limited to, the elements listed below.
(1)	Rates of pay and benefits currently offered by those entities that employ direct care workers.
(2)	Direct care worker turnover rates found in those entities that employ direct care workers.
(3)	Research indicating what factors increase retention of direct care workers.
(4)	Research indicating whether there is an optimal combination of salary and benefits that reduces direct care worker turnover and examples of where those levels have been effective at lowering turnover.
(5)	Research indicating whether merit pay results in improved job performance and reduces turnover of direct care workers.
(6)	Possible changes to Medicaid and State/County Special Assistance that could reward direct care workers of providers who achieve NC NOVA special licensure status.
(7)	Whether individuals receiving unemployment could be trained as direct care workers.
(8)	Ways the State could encourage an increase in the supply of direct care workers. 
SECTION 1.(c)  The Division of Health Service Regulation shall report the results of this study to the North Carolina Study Commission on Aging on or before October 1, 2012.
SECTION 2.  This act is effective when it becomes law.