H.B. 190
GENERAL ASSEMBLY OF NORTH CAROLINA
Feb 23, 2023
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH30097-MG-65A
Short Title: Dept. of Health and Human Services Revisions.-AB (Public)
Sponsors: Representative Potts.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT MAKING TECHNICAL, CONFORMING, AND OTHER MODIFICATIONS TO
3 LAWS PERTAINING TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.
4 The General Assembly of North Carolina enacts:
5
6 PART I. LAWS PERTAINING TO THE DIVISION OF AGING AND ADULT
7 SERVICES
8
9 AUTHORIZATION FOR SECRETARY OF HEALTH AND HUMAN SERVICES TO
10 ADOPT AND ENFORCE RULES TO IMPLEMENT EMERGENCY SOLUTIONS
11 GRANT PROGRAM
12 SECTION 1.1. Article 3 of Chapter 143B of the General Statutes is amended by
13 adding a new section to read:
14 "§ 143B-139.1A. Secretary of Health and Human Services; rules to implement the
15 Emergency Solutions Grant Program.
16 The Secretary of Health and Human Services may adopt rules to implement the Emergency
17 Solutions Grant Program. The Department of Health and Human Services shall enforce any rules
18 adopted under this section."
19
20 ALIGNMENT OF STATE-COUNTY SPECIAL ASSISTANCE PROGRAM WITH
21 FEDERAL REGULATIONS/REMOVAL OF PROPERTY TAX THRESHOLD WHEN
22 DETERMINING ELIGIBILITY
23 SECTION 1.2. G.S. 108A-41 reads as rewritten:
24 "§ 108A-41. Eligibility.
25 …
26 (c) When determining whether a person has insufficient resources to provide a reasonable
27 subsistence compatible with decency and health, there shall be excluded from consideration the
28 person's primary place of residence and the land on which it is situated, and in addition there
29 shall be excluded real property contiguous with the person's primary place of residence in which
30 the property tax value is less than twelve thousand dollars ($12,000).residence.
31 …."
32
33 EQUALIZATION OF STATE-COUNTY SPECIAL ASSISTANCE PAYMENTS FOR
34 RECIPIENTS RESIDING IN LICENSED FACILITIES APPROVED TO ACCEPT
35 STATE-COUNTY SPECIAL ASSISTANCE AND RECIPIENTS RESIDING IN
36 IN-HOME LIVING ARRANGEMENTS
*DRH30097-MG-65A*
 General Assembly Of North Carolina Session 2023
1 SECTION 1.3. G.S. 108A-47.1(a) reads as rewritten:
2 "(a) The Department of Health and Human Services may use funds from the existing
3 State-County Special Assistance budget to provide Special Assistance payments to eligible
4 individuals 18 years of age or older in in-home living arrangements. The standard monthly
5 payment to individuals enrolled in the Special Assistance in-home program shall be one hundred
6 percent (100%) of the monthly payment the individual would receive if the individual resided in
7 an adult care home and qualified for Special Assistance, except if a lesser payment amount is
8 appropriate for the individual as determined by the local case manager. Assistance. The
9 Department shall implement Special Assistance in-home eligibility policies and procedures to
10 assure that in-home program participants are those individuals who need and, but for the in-home
11 program, would seek placement in an adult care home facility. The Department's policies and
12 procedures shall include the use of a functional an assessment."
13
14 PART II. LAWS PERTAINING TO THE DIVISION OF CENTRAL MANAGEMENT
15 AND SUPPORT
16
17 CONTRACTING REFORM
18 SECTION 2.1. Section 2 of S.L. 2022-52 reads as rewritten:
19 "SECTION 2.(a) Contract Time and Continuity. – In efforts to support the continuity of
20 services provided by nonprofit grantees receiving state and federal funds, a nonprofit grantee
21 receiving State or federal funds or any combination of State and federal funds through a financial
22 assistance contract, the Department of Health and Human Services (Department) shall enter into
23 a contract agreement for a minimum of a two-year contract agreement two years with such
24 nonprofit grantees/recipients grantee if all of the following requirements are met:
25 (1) The nonprofit grantee/recipient grantee is receiving nonrecurring funding
26 funds for each year of a fiscal biennium.
27 (2) The nonprofit grantee/recipient grantee is receiving recurring funding.funds
28 for each year of a fiscal biennium.
29 (3) The nonprofit grantee is receiving any combination of recurring and
30 nonrecurring funds for each year of a fiscal biennium.
31 (3)(4) Multiyear contracts are not otherwise prohibited by the funding source.
32 "SECTION 2.(a1) Nonprofit grantees/recipients Option for Contract Extension. – A
33 nonprofit grantee receiving recurring federal grant funding shall have funds through a financial
34 assistance contract has the option to extend the contract for up to one additional year at the end
35 of the contract's initial term of the contract if all of the following requirements are met:
36 (1) The extension is mutually agreed upon by the Department and the nonprofit
37 grantee, through a written amendment as provided for in the General Terms
38 and Conditions.terms and conditions of the contract.
39 (2) Funding for the contract remains available.
40 "SECTION 2.(a2) Automatic Contract Extension. – The Department shall allow any
41 nonprofit grantee/recipient grantee receiving recurring or nonrecurring state and/or State or
42 federal funding funds, or any combination of State and federal funds, through a financial
43 assistance contract for each year of a fiscal biennium to automatically activate a limited-time
44 extensions contract extension for a period of up to three months for to preserve continuity of
45 services when a formal contract extension or renewal process has not been completed within 10
46 business days of after the subsequent contract start date if all of expiration of the original contract;
47 provided, however, that all of the following requirements are met:
48 (1) The nonprofit grantee/recipient grantee is receiving recurring funding funds,
49 or nonrecurring state and/or federal funding State or federal funds, or any
50 combination of nonrecurring State and federal funds, for each year of a fiscal
51 biennium.
Page 2 DRH30097-MG-65A
 General Assembly Of North Carolina Session 2023
1 (2) The nonprofit grantee/recipient grantee has received an unqualified audit
2 report on its most recent financial audit when an audit is required by
3 G.S. 159-34 or 09 NCAC 03M.
4 (3) The nonprofit grantee/recipient grantee has a track record of timely
5 performance and financial reporting to the Department as required by the
6 contract.
7 (4) The nonprofit grantee/recipient grantee has not been identified by the
8 Department as having a record of noncompliance with requirements of any
9 funding source used to support the contract and has not received an undisputed
10 notice of such noncompliance from the Department. For purposes of this
11 requirement, noncompliance does not include issues stemming from late
12 execution of a contract or mutually agreed upon changes to scope of work or
13 deliverables, and undisputed notice of noncompliance does not include notice
14 of noncompliance where the nonprofit grantee has provided written evidence
15 of actual compliance to the Department within 30 days of after receipt of a
16 notice of noncompliance.
17 (5) The nonprofit grantee/recipient grantee has been in operation for at least five
18 years.
19 In the event of an automatic contract extension pursuant to this subsection, the terms of the
20 expired contract shall govern the relationship and obligations of the party until the end of the
21 three-month contract extension period or until the execution of a formal contract extension or
22 renewal, whichever occurs first.
23 "SECTION 2.(b) Directed Grant Contacts. – Within 15 days after the date the Current
24 Operations Appropriations Act of 2022 (the "Act") becomes law, the Fiscal Research Division
25 shall provide the Department of Health and Human Services, Division of Budget and Analysis,
26 with a list of preliminary information for all non-State entities receiving directed grants through
27 the Act. At a minimum, this list shall include all of the following information:
28 (1) The legal name of the non-State entity.
29 (2) The mailing address of the non-State entity.
30 (3) The name, email address, and phone number for each of the non-State entity's
31 points of contact for communications related to the directed grant contracting
32 and funds disbursement process.
33 "SECTION 2.(c) Negotiated Overhead Rates. – The negotiation, determination, or
34 settlement of the reimbursable amount of overhead under cost-reimbursement type contracts is
35 accomplished on an individual contract basis and is based upon the federally approved indirect
36 cost rate. For vendors who grantees, including nonprofit grantees, that (i) are receiving financial
37 assistance and do not have a federally approved indirect cost rate, rate from a federal agency or
38 (ii) have a previously negotiated but expired rate, the Department may allow the grantee, in
39 accordance with 2 C.F.R. § 200.332(a)(4) or 2 C.F.R. § 200.414(f), the de minimis rate of ten
40 percent (10%) of modified total direct costs shall apply.to use the de minimis rate or ten percent
41 (10%) of modified total direct costs. Alternatively, the grantee may negotiate or waive an indirect
42 cost rate with the Department. If State or federal law or regulations establish a limitation on the
43 amount of funds the grantee may use for administrative purposes, then that limitation controls,
44 in accordance with 2 C.F.R. § 200.414(c)(3)."
45
46 PART III. LAWS PERTAINING TO THE DIVISION OF CHILD AND FAMILY
47 WELL-BEING
48
49 CONFORMING CHANGES RELATED TO ESTABLISHMENT OF NEW DIVISION
50 SECTION 3.1. G.S. 7B-1402(b)(5) reads as rewritten:
DRH30097-MG-65A Page 3
 General Assembly Of North Carolina Session 2023
1 "(5) The Director of the Maternal and Child Health Section Division of Child and
2 Family Well-Being of the Department of Health and Human Services."
3 SECTION 3.2. G.S. 7B-1404(b) reads as rewritten:
4 "(b) The State Team shall be composed of the following 11 members of whom nine
5 members are ex officio and two are appointed:
6 (1) The Chief Medical Examiner, who shall chair the State Team;Team.
7 (2) The Attorney General;General.
8 (3) The Director of the Division of Social Services, Department of Health and
9 Human Services;Services.
10 (4) The Director of the State Bureau of Investigation;Investigation.
11 (5) The Director of the Division of Maternal and Child Health Child and Family
12 Well-Being of the Department of Health and Human Services;Services.
13 (6) The Superintendent of Public Instruction;Instruction.
14 (7) The Director of the Division of Mental Health, Developmental Disabilities,
15 and Substance Abuse Services, Department of Health and Human
16 Services;Services.
17 (8) The Director of the Administrative Office of the Courts;Courts.
18 (9) The pediatrician appointed pursuant to G.S. 7B-1402(b) to the Task
19 Force;Force.
20 (10) A public member, appointed by the Governor; andGovernor.
21 (11) The Team Coordinator.
22 The ex officio members other than the Chief Medical Examiner may designate a
23 representative from their departments, divisions, or offices to represent them on the State Team."
24 SECTION 3.3. G.S. 122C-113(b1) reads as rewritten:
25 "(b1) The Secretary shall cooperate with the State Board of Education and the Division of
26 Juvenile Justice of the Department of Public Safety in coordinating the responsibilities of the
27 Department of Health and Human Services, the State Board of Education, the Division of
28 Juvenile Justice of the Department of Public Safety, and the Department of Public Instruction for
29 adolescent substance abuse programs. The Department of Health and Human Services, through
30 its Division of Mental Health, Developmental Disabilities, and Substance Abuse Services,
31 Services and its Division of Child and Family Well-Being, in cooperation with the Division of
32 Juvenile Justice of the Department of Public Safety, shall be responsible for intervention and
33 treatment in non-school based programs. The State Board of Education and the Department of
34 Public Instruction, in consultation with the Division of Juvenile Justice of the Department of
35 Public Safety, shall have primary responsibility for in-school education, identification, and
36 intervention services, including student assistance programs."
37 SECTION 3.4. G.S. 122C-142.2(g) reads as rewritten:
38 "(g) The Rapid Response Team shall be comprised of representatives of the Department
39 of Health and Human Services from the Division of Social Services; the Division of Mental
40 Health, Developmental Disabilities, and Substance Abuse Services; the Division of Child and
41 Family Well-Being; and the Division of Health Benefits. Upon receipt of a notification from a
42 director, the Rapid Response Team shall evaluate the information provided and coordinate a
43 response to address the immediate needs of the juvenile, which may include any of the following:
44 (1) Identifying an appropriate level of care for the juvenile.
45 (2) Identifying appropriate providers or other placement for the juvenile.
46 (3) Making a referral to qualified services providers.
47 (4) Developing an action plan to ensure the needs of the juvenile are met.
48 (5) Developing a plan to ensure that relevant parties carry out any responsibilities
49 to the juvenile."
50
Page 4 DRH30097-MG-65A
 General Assembly Of North Carolina Session 2023
1 PART IV. LAWS PERTAINING TO THE DIVISION OF HEALTH SERVICE
2 REGULATION
3
4 AUTHORIZATION FOR TRIENNIAL INSPECTION OF HIGH PERFORMING
5 ADULT CARE HOME FACILITIES
6 SECTION 4.1.(a) G.S. 131D-2.11 reads as rewritten:
7 "§ 131D-2.11. Inspections, monitoring, and review by State agency and county departments
8 of social services.
9 (a) State Inspection and Monitoring. – The Department shall ensure that adult care homes
10 required to be licensed by this Article are monitored for licensure compliance on a regular basis.
11 All facilities licensed under this Article and adult care units in nursing homes are subject to
12 inspections at all times by the Secretary. Except as provided in subsection (a1) of this section,
13 the Division of Health Service Regulation shall inspect all adult care homes and adult care units
14 in nursing homes on an annual basis. Beginning July 1, 2012, the The Division of Health Service
15 Regulation shall include as part of its inspection of all adult care homes a review of the facility's
16 compliance with G.S. 131D-4.4A(b) and safe practices for injections and any other procedures
17 during which bleeding typically occurs. In addition, the Department shall ensure that adult care
18 homes are inspected every two years to determine compliance with physical plant and life-safety
19 requirements.
20 If the annual or biennial annual, biennial, or triennial licensure inspection of an adult care
21 home is conducted separately from the inspection required every two years to determine
22 compliance with physical plant and life-safety requirements, then the Division of Health Service
23 Regulation shall not cite, as part of the annual or biennial annual, biennial, or triennial licensure
24 inspection, any noncompliance with any law or regulation that was cited during a physical plant
25 and life-safety inspection, unless, in consultation with the section within the Division of Health
26 Service Regulation that conducts physical plant and life-safety inspections, any of the following
27 conditions are met:
28 (1) The noncompliance with the law or regulation continues and the
29 noncompliance constitutes a Type A1 Violation, a Type A2 Violation, or a
30 Type B Violation, as defined in G.S. 131D-34.
31 (2) The facility has not submitted a plan of correction f