A BILL TO BE ENTITLED
AN ACT to modify laws applicable to local management entities/managed care organizations.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 122C‑154 reads as rewritten:
"§ 122C‑154.  Personnel.
Employees under the direct supervision of the area director are employees of the area authority."
SECTION 1.(b)  G.S. 122C‑156 reads as rewritten:
"§ 122C‑156.  Salary plan for employees of the area authority.
(a)	The area authority shall establish a salary plan which shall set the salaries for employees of the area authority.
…."
SECTION 1.(c)  Subsection (a) of this section applies to employees of area authorities who are hired on or after the date this section becomes law. Subsection (b) of this section applies to salary plans established on or after the date this section becomes law.
SECTION 2.(a)  G.S. 126‑5(a)(2)a. is repealed.
SECTION 2.(b)  G.S. 126‑5 reads as rewritten:
"§ 126‑5.  Employees subject to Chapter; exemptions.
…
(c2)	This Chapter does not apply to any of the following:
…
(6)	Employees of an area authority as defined under G.S. 122C‑3(1).
…."
SECTION 2.(c)  This section applies to employees of area mental health, developmental disabilities, and substance use authorities, defined as area authorities under G.S. 122C‑3, hired after the date this act becomes law.
SECTION 3.  G.S. 126‑11 reads as rewritten:
"§ 126‑11.  Local personnel system may be established; approval and monitoring; rules and regulations.
(a)	The board of county commissioners of any county may establish and maintain a personnel system for all employees of the county subject to its jurisdiction, which system and any substantial changes to the system, shall be approved by the State Human Resources Commission as substantially equivalent to the standards established under this Chapter for employees of local departments of social services, local health departments, and local emergency management programs. If approved by the State Human Resources Commission, the employees covered by the county system shall be exempt from all provisions of this Chapter except Article 6.
	
(b)	A board of county commissioners may petition the State Human Resources Commission to determine whether any portion of its total personnel system meets the requirements in (a) above. Upon such determination, county employees shall be exempt from the provisions of this Chapter relating to the approved portions of the county personnel system.

(d)	In order to define "substantially equivalent," the State Human Resources Commission is authorized to promulgate rules and regulations to implement the federal merit system standards and these regulations at a minimum shall include: recruitment and selection of employees; position classification; pay administration; training; employee relations; equal employment opportunity; and records and reports."
SECTION 4.  G.S. 108D‑60(a)(5) reads as rewritten:
"(5)	During the initial contract term for BH IDD tailored plans, LME/MCOs operating BH IDD tailored plans shall contract with an entity that holds a PHP license and that covers the services required to be covered under a standard benefit plan contract. After the initial contract term for BH IDD tailored plans, LME/MCOs operating BH IDD tailored plans may contract with an entity that holds a PHP license and that covers the services required to be covered under a standard benefit plan contract."
SECTION 5.  Except as otherwise provided, this act is effective when it becomes law.