A BILL TO BE ENTITLED
AN ACT TO ENSURE ADEQUATE FUNDING IN THE STATE MEDICAID PROGRAM FOR THE 2012‑2013 FISCAL YEAR.
The General Assembly of North Carolina enacts:
SECTION 1.  Notwithstanding G.S. 143C‑6‑4, in order to ensure that there is adequate funding in the Medicaid budget for the 2012‑2013 fiscal year, the Director of the Budget is authorized, in conjunction with the State Controller and other necessary State officials, to adjust the authorized General Fund budget in accordance with this act to ensure that there are sufficient funds to pay the costs of the State Medicaid Program for the 2012‑2013 fiscal year.
SECTION 2.  The Director of the Budget shall make the following adjustments to increase the authorized budget of the Division of Medical Assistance. These adjustments are set forth in priority order, and no increase shall be made until the preceding increase has been completely exhausted in the permissible amount:
(1)	Twenty million nine hundred thousand dollars ($20,900,000) from funds not expended pursuant to Section 10.9G of S.L. 2012‑142.
(2)	Seventy‑four million dollars ($74,000,000) from drug rebate refunds. These funds are hereby appropriated.
(3)	A minimum of sixty‑seven million dollars ($67,000,000) from other projected reversions within the Department of Health and Human Services.
(4)	A maximum of one hundred million dollars ($100,000,000) from projected reversions within State agencies other than the Department of Health and Human Services.
SECTION 3.  Adjustments pursuant to Section 2 of this act shall be used only to pay the costs of the State Medicaid Program, including drug rebates owed to the federal government, for the 2012‑2013 fiscal year. Any adjustments pursuant to this section that are not needed to pay the costs of the Medicaid program for the 2012‑2013 fiscal year shall revert to the General Fund.
SECTION 4.  Neither the Director of the Budget nor any other State official, officer, or agency shall authorize any adjustment under this act that creates or increases a financial obligation in the 2013‑2014 fiscal year or any subsequent fiscal year.
SECTION 5.  In implementing the budget adjustments authorized in this act, the Director of the Budget shall not transfer funds between departments and agencies or within the Department of Health and Human Services but shall instead make adjustments to the authorized budget.
SECTION 6.  On or before October 1, 2013, the Office of State Budget and Management and the Department of Health and Human Services shall report on measures taken pursuant to this act to the Appropriations/Base Budget Committee of the Senate, the Appropriations Committee of the House of Representatives, and the Joint Legislative Commission on Governmental Operations. Reporting requirements under G.S. 143C‑6‑4 shall not apply to adjustments made pursuant to this act.
SECTION 7.  This act is effective when it becomes law.