A BILL TO BE ENTITLED
An act making SUPPLEMENTAL APPROPRIATIONS for the OPERATION OF GOVERNMENT relative to THE Average Daily Membership IN THE PUBLIC SCHOOLS, NC promise TUITION PLAN, IN‑STATE TUITION FOR CERTAIN VETERANS AND OTHERs, NC FAST OPERATIONS AND MAINTENANCE, SUICIDE PREVENTION, LME/MCO INTERGOVERNMENTAL TRANSFERS, 2018 disaster recovery, raise the age implementation, maintenance of tax systems, WESTERN CAROLINA STEAM PLANT PROJECT, AND STATE DEBT SERVICE; AND AMENDING THE STATE BUDGET ACT TO CLARIFY THE STATE'S EMPLOYER CONTRIBUTION RATE PROCEDURE FOR BUDGET CONTINUATION.
The General Assembly of North Carolina enacts:

Part I. IMPLEMENTATION IN CONJUNCTION WITH STATUTORY PROCEDURES FOR BUDGET CONTINUATION
SECTION 1.1.  The provisions of this act shall be implemented in conjunction with the procedures for budget continuation specified in G.S. 143C‑5‑4(b). If the provisions of this act and G.S. 143C‑5‑4(b) are in conflict, the provisions of this act shall prevail.

Part II. PUBLIC SCHOOLS ADM/NC PROMISE/IN‑STATE TUITION FOR CERTAIN VETERANS AND OTHER INDIVIDUALS
SECTION 2.1.  There is appropriated from the General Fund to the Department of Public Instruction the sum of fifty million five hundred forty‑eight thousand three dollars ($50,548,003) in recurring funds for the 2019‑2020 fiscal year to fully fund increases in Average Daily Membership and average salary adjustments in public schools.
SECTION 2.2.(a)  The funds appropriated by S.L. 2018‑5 for enrollment adjustments for The University of North Carolina, including funds for the NC Promise Tuition Plan, to a reserve account in the Office of State Budget and Management for the 2018‑2019 fiscal year shall not revert at the end of the 2018‑2019 fiscal year but shall remain available until the end of the 2019‑2020 fiscal year for the purpose of the "buy down" of any financial obligations resulting from the established tuition rate under G.S. 116‑143.11 incurred by Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University or for rapid growth at any of those constituent institutions.
SECTION 2.2.(b)  This section becomes effective June 30, 2019.
SECTION 2.3.(a)  G.S. 116‑143.3A reads as rewritten:
"§ 116‑143.3A.  Waiver of 12‑month residency requirement for certain veterans and other individuals.
(a)	Definitions. – The following definitions apply in this section:
(1)	Abode. – Has the same meaning as G.S. 116‑143.3(a)(1).
(2)	Armed Forces. – Has the same meaning as G.S. 116‑143.3(a)(2).
(3)	Veteran. – A person who served active duty for not less than 90 days in the Armed Forces, the Commissioned Corps of the U.S. Public Health Service, or the National Oceanic and Atmospheric Administration and who was discharged or released from such service.
(b)	Waiver of 12‑Month Residency Requirement for Certain Individuals. – Any veteran, dependent of a veteran, or other individual who qualifies for admission to an institution of higher education as defined in G.S. 116‑143.1(a)(3) is eligible to be charged the in‑State tuition rate and applicable mandatory fees for enrollment, to the extent required by Section 702 of the Veterans Access, Choice, and Accountability Act of 2014, as amended, 38 U.S.C. § 3679, without satisfying the 12‑month residency requirement under G.S. 116‑143.1, provided the individual meets all of the following criteria:

(3)	The individual's abode is North Carolina.
(4)	The individual provides the institution of higher education at which the individual intends to enroll a letter of intent to establish residence in North Carolina.
(5)	The individual meets the definition of a "covered individual" under 38 U.S.C. § 3679(c).

	

	
	
(d)	After the expiration of the three‑year period following discharge as described in 38 U.S.C. § 3679(c), any enrolled individual who is eligible for in‑State tuition under this section shall continue to be eligible for the in‑State tuition rate so long as the covered individual remains continuously enrolled (other than during regularly scheduled breaks between courses, quarters, terms, or semesters) at that institution of higher education.
(e)	The individual applying for the benefit of this section has the burden of proving entitlement to the benefit."
SECTION 2.3.(b)  This section applies to qualifying veterans and other individuals who are enrolled or who enroll in institutions of higher education for any academic quarter, term, or semester that begins on or after the date this act becomes law.

Part III. FUNDS FOR NC FAST OPERATIONS AND MAINTENANCE
SECTION 3.1.(a)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Central Management and Support, the sum of five million seven hundred forty‑six thousand one hundred seventy‑two dollars ($5,746,172) in recurring funds, for the 2019‑2020 fiscal year, to be used for operations and maintenance of the North Carolina Families Accessing Services Through Technology (NC FAST) System.
SECTION 3.1.(b)  Departmental receipts are hereby appropriated for the 2019‑2020 fiscal year in the amount of twelve million seven hundred sixty‑seven thousand two hundred dollars ($12,767,200) in recurring funds and in the amount of two million three hundred sixty‑two thousand nine hundred eighty‑two dollars ($2,362,982) in nonrecurring funds, to be used for the purposes specified in subsection (a) of this section.

PART IV. USE OF MEDICAID TRANSFORMATION FUND FOR NONRECURRING EXPENDITURES OF THE NORTH CAROLINA FAMILIES ACCESSING SERVICES THROUGH TECHNOLOGY (NC FAST) SYSTEM
SECTION 4.1.(a)  The State Controller shall transfer the sum of four million seven hundred sixty‑three thousand seven hundred twenty‑five dollars ($4,763,725) for the 2019‑2020 fiscal year from funds available in the Medicaid Transformation Reserve in the General Fund to the Medicaid Transformation Fund established under Section 12H.29 of S.L. 2015‑241.
SECTION 4.1.(b)  Notwithstanding the stated purpose of the Medicaid Transformation Fund established under Section 12H.29 of S.L. 2015‑241, there is transferred from the Medicaid Transformation Fund to the Department of Health and Human Services, Division of Central Management and Support the following amounts:
(1)	The sum of three million seven hundred five thousand five hundred five dollars ($3,705,505) in nonrecurring funds for the 2019‑2020 fiscal year. These funds shall be used solely for the following purposes relative to the North Carolina Families Accessing Services Through Technology (NC FAST) System: (i) to implement changes to the child welfare case management component required by the Family First Prevention Services Act, (ii) to implement comprehensive child welfare information system updates necessitated by updated federal requirements, and (iii) to fund a federally required contract for independent verification and validation of the system.
(2)	The sum of one million fifty‑eight thousand two hundred twenty dollars ($1,058,220) in nonrecurring funds for the 2019‑2020 fiscal year, to be used for nonrecurring operations and maintenance of the NC FAST System.
SECTION 4.1.(c)  Departmental receipts are hereby appropriated in the sum of four million eight hundred thirteen thousand thirty‑seven dollars ($4,813,037) in nonrecurring funds for the 2019‑2020 fiscal year, to be used for the purposes described in subsection (a) of this section.

PART V. FUNDS FOR SUICIDE PREVENTION LIFELINE
SECTION 5.1.  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, the sum of three hundred forty‑eight thousand five hundred fifty‑eight dollars ($348,558) in nonrecurring funds for the 2019‑2020 fiscal year, to be used for the Suicide Prevention Lifeline.

PART VI. LME/MCO INTERGOVERNMENTAL TRANSFERS
SECTION 6.1.(a)  The local management entities/managed care organizations (LME/MCOs) shall make intergovernmental transfers to the Department of Health and Human Services, Division of Health Benefits (DHB), in an aggregate amount of eighteen million twenty‑eight thousand two hundred seventeen dollars ($18,028,217) in the 2019‑2020 fiscal year. The due date and frequency of the intergovernmental transfer required by this section shall be determined by DHB. The amount of the intergovernmental transfer that each individual LME/MCO is required to make in each fiscal year shall be as follows:
	2019‑2020
Alliance Behavioral Healthcare	$2,994,453
Cardinal Innovations Healthcare	$4,032,586
Eastpointe	$1,701,156
Partners Behavioral Health Management	$1,914,860
Sandhills Center	$1,978,939
Trillium Health Resources	$3,119,822
Vaya Health	$2,286,401
SECTION 6.1.(b)  In the event that any county disengages from an LME/MCO and realigns with another LME/MCO during the 2019‑2020 fiscal year, DHB shall have the authority to reallocate the amount of the intergovernmental transfer that each affected LME/MCO is required to make under subsection (a) of this section, taking into consideration the change in catchment area and covered population, provided that the aggregate amount of the transfers received from all LME/MCOs are achieved.
SECTION 6.1.(c)  If DHB does not make the additional capitation payment associated with the Medicaid risk reserve to an LME/MCO in any given month, then the intergovernmental transfer required to be made by that LME/MCO under subsection (a) of this section shall be reduced on a pro rata basis and the aggregate amount to be collected by DHB shall be adjusted accordingly.

PART VII. CLARIFICATION and IMPLEMENTATION OF 2018 disaster recovery
SECTION 7.1.(a)  Expand Uses/Golden L.E.A.F. Hurricane Florence Allocation. – Notwithstanding any provision of S.L. 2018‑136 or the Committee Report described in Section 6.1 of that act to the contrary, the funds allocated to the Office of State Budget and Management for Golden L.E.A.F. (Long Term Economic Advancement Foundation), Inc., for infrastructure may be used for the replacement, improvement, or construction of new infrastructure to support hazard mitigation.
SECTION 7.1.(b)  Clarify Volunteer Fire Department Assistance. – Notwithstanding any provision of S.L. 2018‑136 or the Committee Report described in Section 6.1 of that act to the contrary, the funds allocated to the Department of Insurance, Office of State Fire Marshal, for financial assistance to volunteer fire departments is available to be used to repair damages not covered by insurance policy proceeds.
SECTION 7.1.(c)  CAMA Emergency General Permit Extension. – Notwithstanding the time lines set forth in 15A NCAC 07H .2502 or other applicable law to the contrary, Coastal Area Management Act Emergency General Permits authorized in response to Hurricanes Florence and Michael and activated by the Secretary of the Department of Environmental Quality in a September 20, 2018, statement, as amended on October 12, 2018, shall be subject to the following schedule:
(1)	All emergency general permits must be issued by October 12, 2019.
(2)	All work authorized by the emergency general permits must be completed by October 12, 2020.
SECTION 7.1.(d)  Expand DACS Farmer Assistance. – Notwithstanding the deadline set forth in Section 5.11(e) of S.L. 2018‑136, as amended by S.L. 2018‑141, a person who experienced a verifiable loss of agricultural commodities as a result of excessive rain and flooding that occurred during May 15, 2018, through December 31, 2018, and whose farm is located in a North Carolina county that, between January 31, 2019, and February 15, 2019, was included in a Secretarial Disaster Declaration, either as a primary county or as a contiguous county, as a result of excessive rain and flooding that occurred during May 15, 2018, through December 31, 2018, issued by the United States Secretary of Agriculture, is eligible for financial assistance for losses of agricultural commodities pursuant to Section 5.11 of S.L. 2018‑136. This subsection is effective when this act becomes law. The Department shall accept completed applications from persons eligible for financial assistance pursuant to this subsection for no more than 10 consecutive business days on which the federal government is not partially or fully shut down, beginning on the effective date of this subsection. This subsection shall expire on the date the Department has processed all applications validly received during this period.

PART VIII. FUNDING FOR RAISE THE AGE IMPLEMENTATION
SECTION 8.1.  The following sums are appropriated from the General Fund for the 2019‑2020 fiscal year to be used to implement the provisions of Section 16D.4 of S.L. 2017‑57, including costs associated with hiring 180 full‑time employees:
(1)	The sum of twenty‑two million nine hundred eighty‑two thousand one hundred twenty‑three dollars ($22,982,123) in recurring funds and the sum of four million forty thousand nine hundred fourteen dollars ($4,040,914) in nonrecurring funds to the Department of Public Safety.
(2)	The sum of eighty‑seven thousand six hundred eighty‑one dollars ($87,681) in recurring funds to the Office of Indigent Defense Services.

PART IX. DEPARTMENT OF REVENUE/OPERATIONS AND MAINTENANCE OF TAX SYSTEMS
SECTION 9.1.  The sum of twelve million five hundred thousand dollars ($12,500,000) in nonrecurring funds for the 2019‑2020 fiscal year shall be transferred from the Collections Assistance Fee Special Fund in the Department of Revenue to the Department's Division of Information Technology (14700‑1605) to support the Portfolio Warehouse, the Modernized eFile, and tax systems operations and maintenance upgrades.

PART X. WESTERN CAROLINA STEAM PLANT PROJECT
SECTION 10.1.  There is appropriated from the General Fund to Western Carolina University the sum of sixteen million five hundred thousand dollars ($16,500,000) in nonrecurring funds for the 2019‑2020 fiscal year to be used for the steam plant replacement project.

PART XI. Department of Transportation/Additional Debt Service
SECTION 11.1.  Consistent with G.S. 143C‑5‑4(b)(1), which requires the Director of Budget to ensure the prompt payment of the principal and interest on bonds and notes of the State according to their terms, there is appropriated from the Highway Trust Fund to the Department of Transportation the sum of seventeen million three hundred ten thousand dollars ($17,310,000) in recurring funds to be used for Debt Service – Principal Due (Fund Code 6005) and the sum of eleven million two hundred fifty thousand dollars ($11,250,000) in recurring funds to be used for Debt Service – Interest (Fund Code 6006) for the 2019‑2020 fiscal year.

PART XII. CLARIFY STATE'S EMPLOYER CONTRIBUTION RATE PROCEDURE FOR BUDGET CONTINUATION
SECTION 12.1.  G.S. 143C‑5‑4(b) reads as rewritten:
"(b)	Procedure for Budget Continuation. – If a fiscal year begins for which no Current Operations Appropriations Act providing for current operations of State government during that fiscal year has become law, then the following procedures shall be followed and the following limitations shall apply:
…
(7)	State's employer contribution rate. – The State's employer contribution rates budgeted for retirement and related benefits for the current fiscal year shall remain the same as the recurring portion of the rates in effect as of June 30 of the prior fiscal year. These rates are effective until the Current Operations Appropriations Act for the current fiscal year becomes law and are subject to revision in that act. If that act modifies those rates, the Director of the Budget shall further modify the rates set in that act for the remainder of the fiscal year so as to compensate for the different amount contributed between July 1 and the date the Current Operations Appropriations Act becomes law so that the effective rates for the entire year reflect the rates set in the Current Operations Appropriations Act.
…."

PART XIII. EFFECTIVE DATE
SECTION 13.1.  Except as otherwise provided, this act becomes effective July 1, 2019.