North Carolina register, July 1998 - present

              NORTH CAROLINA
REGISTER
Volume 19, Issue 18
Pages 1474 - 1521
March 15, 2005
This issue contains documents officially filed
through February 22, 2005.
Office of Administrative Hearings
Rules Division
424 North Blount Street (27601)
6714 Mail Service Center
Raleigh, NC 27699-6714
(919) 733-2678
FAX (919) 733-3462
Julian Mann III, Director
Camille Winston, Deputy Director
Molly Masich, Director of APA Services
Dana Sholes, Publication Coordinator
Linda Dupree, Editorial Assistant
Julie Brincefield, Editorial Assistant
IN THIS ISSUE
I. PROPOSED RULES
Governor and Lt. Governor
Office of State Budget and Management .............1474 – 1480
Health and Human Services
Commission for MH/DD/SAS .............................1480 – 1484
Licensing Boards
Cosmetic Art Examiners, Board of ......................1484 – 1485
Real Estate Appraisal Board.................................1485 - 1496
II. RULES REVIEW COMMISSION.......................1497 - 1507
III. CONTESTED CASE DECISIONS
Index to ALJ Decisions............................................1508 - 1514
Text of Selected Decisions
04 OSO 0882........................................................1515 - 1520
For the CUMULATIVE INDEX to the NC Register go to:
http://ncoah.com/register/CI.pdf
North Carolina Register is published semi-monthly for $195 per year by the Office of Administrative Hearings, 424 North Blount Street, Raleigh, NC
27601. North Carolina Register (ISSN 15200604) to mail at Periodicals Rates is paid at Raleigh, NC. POSTMASTER: Send Address changes to
the North Carolina Register, 6714 Mail Service Center, Raleigh, NC 27699-6714.
NORTH CAROLINA ADMINISTRATIVE CODE CLASSIFICATION SYSTEM
The North Carolina Administrative Code (NCAC) has four major classifications of rules. Three of these, titles, chapters, and sections are
mandatory. The major classification of the NCAC is the title. Each major department in the North Carolina executive branch of
government has been assigned a title number. Titles are further broken down into chapters which shall be numerical in order.
Subchapters are optional classifications to be used by agencies when appropriate.
NCAC TITLES TITLE 21
LICENSING BOARDS
TITLE 24
INDEPENDENT AGENCIES
1 ADMINISTRATION
2 AGRICULTURE & CONSUMER SERVICES
3 AUDITOR
4 COMMERCE
5 CORRECTION
6 COUNCIL OF STATE
7 CULTURAL RESOURCES
8 ELECTIONS
9 GOVERNOR
10A HEALTH AND HUMAN SERVICES
11 INSURANCE
12 JUSTICE
13 LABOR
14A CRIME CONTROL & PUBLIC SAFETY
15A ENVIRONMENT &NATURAL RESOURCES
16 PUBLIC EDUCATION
17 REVENUE
18 SECRETARY OF STATE
19A TRANSPORTATION
20 TREASURER
21* OCCUPATIONAL LICENSING BOARDS
22 ADMINISTRATIVE PROCEDURES
(REPEALED)
23 COMMUNITY COLLEGES
24* INDEPENDENT AGENCIES
25 STATE PERSONNEL
26 ADMINISTRATIVE HEARINGS
27 NC STATE BAR
28 JUVENILE JUSTICE AND DELINQUENCY
PREVENTION
1 Acupuncture
2 Architecture
3 Athletic Trainer Examiners
4 Auctioneers
6 Barber Examiners
8 Certified Public Accountant Examiners
10 Chiropractic Examiners
11 Employee Assistance Professionals
12 General Contractors
14 Cosmetic Art Examiners
16 Dental Examiners
17 Dietetics/Nutrition
18 Electrical Contractors
19 Electrolysis
20 Foresters
21 Geologists
22 Hearing Aid Dealers and Fitters
25 Interpreter/Transliterator
26 Landscape Architects
28 Landscape Contractors
29 Locksmith Licensing
30 Massage & Bodywork Therapy
31 Marital and Family Therapy
32 Medical Examiners
33 Midwifery Joint Committee
34 Funeral Service
36 Nursing
37 Nursing Home Administrators
38 Occupational Therapists
40 Opticians
42 Optometry
44 Osteopathic Examination (Repealed)
45 Pastoral Counselors, Fee-Based Practicing
46 Pharmacy
48 Physical Therapy Examiners
50 Plumbing, Heating & Fire Sprinkler
Contractors
52 Podiatry Examiners
53 Professional Counselors
54 Psychology
56 Professional Engineers & Land Surveyors
57 Real Estate Appraisal
58 Real Estate Commission
60 Refrigeration Examiners
61 Respiratory Care
62 Sanitarian Examiners
63 Social Work Certification
64 Speech & Language Pathologists &
Audiologists
65 Therapeutic Recreation Certification
66 Veterinary Medical
68 Substance Abuse Professionals
69 Soil Scientists
1 Housing Finance
2 Agricultural Finance Authority
3 Safety & Health Review
Board
4 Reserved
5 State Health Plan Purchasing
Alliance Board
Note: Title 21 contains the chapters of the various occupational licensing boards and Title 24 contains the chapters of independent agencies.
NORTH CAROLINA REGISTER
Publication Schedule for January 2005 – December 2005
FILING DEADLINES NOTICE OF TEXT PERMANENT RULE TEMPORARY
RULES
Volume &
issue
number
Issue date Last day
for filing
Earliest date for
public hearing
End of required
comment
period
Deadline to submit
to RRC
for review at
next meeting
Earliest Eff.
Date of
Permanent Rule
Delayed Eff. Date of
Permanent Rule
(first legislative
day of the next
regular session)
270th day from publication
in the Register
19:13 01/03/05 12/08/04 01/18/05 03/04/05 03/21/05 05/01/05 05/06 09/30/05
19:14 01/18/05 12/22/04 02/02/05 03/21/05 04/20/05 06/01/05 05/06 10/15/05
19:15 02/01/05 01/10/05 02/16/05 04/04/05 04/20/05 06/01/05 05/06 10/29/05
19:16 02/15/05 01/25/05 03/02/05 04/18/05 04/20/05 06/01/05 05/06 11/12/05
19:17 03/01/05 02/08/05 03/16/05 05/02/05 05/20/05 07/01/05 05/06 11/26/05
19:18 03/15/05 02/22/05 03/30/05 05/16/05 05/20/05 07/01/05 05/06 12/10/05
19:19 04/01/05 03/10/05 04/16/05 05/31/05 06/20/05 08/01/05 05/06 12/27/05
19:20 04/15/05 03/24/05 04/30/05 06/14/05 06/20/05 08/01/05 05/06 01/10/06
19:21 05/02/05 04/11/05 05/17/05 07/01/05 07/20/05 09/01/05 05/06 01/27/06
19:22 05/16/05 04/25/05 05/31/05 07/15/05 07/20/05 09/01/05 05/06 02/10/06
19:23 06/01/05 05/10/05 06/16/05 08/01/05 08/22/05 10/01/05 05/06 02/26/06
19:24 06/15/05 05/24/05 06/30/05 08/15/05 08/22/05 10/01/05 05/06 03/12/06
20:01 07/01/05 06/10/05 07/16/05 08/30/05 09/20/05 11/01/05 05/06 03/28/06
20:02 07/15/05 06/23/05 07/30/05 09/13/05 09/20/05 11/01/05 05/06 04/11/06
20:03 08/01/05 07/11/05 08/16/05 09/30/05 10/20/05 12/01/05 05/06 04/28/06
20:04 08/15/05 07/25/05 08/30/05 10/14/05 10/20/05 12/01/05 05/06 05/12/06
20:05 09/01/05 08/11/05 09/16/05 10/31/05 11/21/05 01/01/06 05/06 05/29/06
20:06 09/15/05 08/25/05 09/30/05 11/14/05 11/21/05 01/01/06 05/06 06/12/06
20:07 10/03/05 09/12/05 10/18/05 12/02/05 12/20/05 02/01/06 05/06 06/30/06
20:08 10/17/05 09/26/05 11/01/05 12/16/05 12/20/05 02/01/06 05/06 07/14/06
20:09 11/01/05 10/11/05 11/16/05 01/03/06 01/20/06 03/01/06 05/06 07/29/06
20:10 11/15/05 10/24/05 11/30/05 01/17/06 01/20/06 03/01/06 05/06 08/12/06
20:11 12/01/05 11/07/05 12/16/05 01/30/06 02/20/06 04/01/06 05/06 08/28/06
20:12 12/15/05 11/22/05 12/30/05 02/13/06 02/20/06 04/01/06 05/06 09/11/06
EXPLANATION OF THE PUBLICATION SCHEDULE
This Publication Schedule is prepared by the Office of Administrative Hearings as a public service and the computation of time periods are not to be deemed binding or controlling.
Time is computed according to 26 NCAC 2C .0302 and the Rules of Civil Procedure, Rule 6.
GENERAL
The North Carolina Register shall be published twice
a month and contains the following information
submitted for publication by a state agency:
(1) temporary rules;
(2) notices of rule-making proceedings;
(3) text of proposed rules;
(4) text of permanent rules approved by the Rules
Review Commission;
(5) notices of receipt of a petition for municipal
incorporation, as required by G.S. 120-165;
(6) Executive Orders of the Governor;
(7) final decision letters from the U.S. Attorney
General concerning changes in laws affecting
voting in a jurisdiction subject of Section 5 of
the Voting Rights Act of 1965, as required by
G.S. 120-30.9H;
(8) orders of the Tax Review Board issued under
G.S. 105-241.2; and
(9) other information the Codifier of Rules
determines to be helpful to the public.
COMPUTING TIME: In computing time in the
schedule, the day of publication of the North Carolina
Register is not included. The last day of the period so
computed is included, unless it is a Saturday, Sunday,
or State holiday, in which event the period runs until
the preceding day which is not a Saturday, Sunday, or
State holiday.
FILING DEADLINES
ISSUE DATE: The Register is published on the first
and fifteen of each month if the first or fifteenth of
the month is not a Saturday, Sunday, or State holiday
for employees mandated by the State Personnel
Commission. If the first or fifteenth of any month is
a Saturday, Sunday, or a holiday for State employees,
the North Carolina Register issue for that day will be
published on the day of that month after the first or
fifteenth that is not a Saturday, Sunday, or holiday for
State employees.
LAST DAY FOR FILING: The last day for filing for any
issue is 15 days before the issue date excluding
Saturdays, Sundays, and holidays for State
employees.
NOTICE OF TEXT
EARLIEST DATE FOR PUBLIC HEARING: The hearing
date shall be at least 15 days after the date a notice of
the hearing is published.
END OF REQUIRED COMMENT PERIOD
An agency shall accept comments on the text of a
proposed rule for at least 60 days after the text is
published or until the date of any public hearings held
on the proposed rule, whichever is longer.
DEADLINE TO SUBMIT TO THE RULES REVIEW
COMMISSION: The Commission shall review a rule
submitted to it on or before the twentieth of a month
by the last day of the next month.
FIRST LEGISLATIVE DAY OF THE NEXT REGULAR
SESSION OF THE GENERAL ASSEMBLY: This date is
the first legislative day of the next regular session of
the General Assembly following approval of the rule
by the Rules Review Commission. See G.S. 150B-
21.3, Effective date of rules.
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1474
Note from the Codifier: The notices published in this Section of the NC Register include the text of proposed rules. The agency
must accept comments on the proposed rule(s) for at least 60 days from the publication date, or until the public hearing, or a
later date if specified in the notice by the agency. If the agency adopts a rule that differs substantially from a prior published
notice, the agency must publish the text of the proposed different rule and accept comment on the proposed different rule for 60
days.
Statutory reference: G.S. 150B-21.2.
TITLE 09 – GOVERNOR AND LT. GOVERNOR
Notice is hereby given in accordance with G.S. 150B-21.2 that
the Office of State Budget and Management intends to adopt the
rules cited as 09 NCAC 03M .0101-.0102, .0201-.0205, .0301,
.0401, .0501, .0601, .0701-.0704, .0801-.0802.
Proposed Effective Date: July 1, 2005
Public Hearing:
Date: May 16, 2005
Time: 10:00 a.m.
Location: Administration Building, 5th floor conference room,
116 W. Jones St., Raleigh, NC
Reason for Proposed Action: Amendment is legislation
requiring rules to be adopted. G.S. 143-6.2, SB 1008.
Procedure by which a person can object to the agency on a
proposed rule: Persons may submit objections regarding the
proposed rules to Tom Newsome, Assistant State Budget Officer,
Office of State Budget and Management, Administration
Building, 20320 Mail Service Center, Raleigh, NC 27699-0320.
Written comments may be submitted to: Tom Newsome,
Assistant State Budget Officer, Office of State Budget and
Management, Administrative Building, 116 W. Jones St., 20320
Mail Service Center, Raleigh, NC 27699-0320, phone (919) 733-
7061.
Comment period ends: May 16, 2005
Procedure for Subjecting a Proposed Rule to Legislative
Review: If an objection is not resolved prior to the adoption of
the rule, a person may also submit written objections to the
Rules Review Commission. If the Rules Review Commission
receives written and signed objections in accordance with G.S.
150B-21.3(b2) from 10 or more persons clearly requesting
review by the legislature and the Rules Review Commission
approves the rule, the rule will become effective as provided in
G.S. 150B-21.3(b1). The Commission will receive written
objections until 5:00 p.m. on the day following the day the
Commission approves the rule. The Commission will receive
those objections by mail, delivery service, hand delivery, or
facsimile transmission. If you have any further questions
concerning the submission of objections to the Commission,
please call a Commission staff attorney at 919-733-2721.
Fiscal Impact
State
Local
Substantive (>$3,000,000)
None
CHAPTER 03 - STATE BUDGET AND MANAGEMENT
SUBCHAPTER 03M – UNIFORM ADMINISTRATION OF
STATE GRANTS
SECTION .0100 - ORGANIZATION AND FUNCTION
09 NCAC 03M .0101 PURPOSE
Pursuant to G.S. 143-6.2(d), the rules in this Subchapter
establish reporting requirements for non-State entities that
receive, use, or expend State funds and ensure the uniform
administration of State grants by all grantor State agencies,
grantee, and subgrantees.
Authority G.S. 143-6.2.
09 NCAC 03M .0102 DEFINITIONS
As used in this Subchapter:
(1) "Agency" shall mean and include every public
office, public officer or official (State or local,
elected or appointed), institution, board,
commission, bureau, council, department,
authority or other unit of government of the
State or of any county, unit, special district or
other political subdivision of government.
(2) "Audit" means an examination of records or
financial accounts to verify their accuracy.
(3) “Certification of Compliance” means a report
provided by the grantor agency to the Office of
the State Auditor that states that the grantee
has met the reporting requirements established
by this Subchapter and included a statement of
certification by the grantor agency and copies
of the submitted grantee reporting package.
(4) "Compliance Supplement" refers to the North
Carolina State Compliance Supplement,
maintained by the State and Local Government
Finance Division within the North Carolina
Department of State Treasurer that has been
developed in cooperation with agencies to
assist the local auditor in identifying program
compliance requirements and audit procedures
for testing those requirements.
(5) "Contract" means a legal instrument that is
used to reflect a relationship between the
agency, grantee, and subgrantee.
(6) "Fiscal Year" means the annual operating year
of the non-State entity.
(7) "Financial Assistance" means assistance that
non-State entities receive or administer in the
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1475
form of grants, loans, loan guarantees,
property (including donated surplus property),
cooperative agreements, interest subsidies,
insurance, food commodities, direct
appropriations, and other assistance. Financial
assistance does not include amounts received
as reimbursement for services rendered to
individuals for Medicare and Medicaid patient
services.
(8) "Financial Statement" means a report
providing financial statistics relative to a given
part of an organization's operations or status.
(9) "Grant" means financial assistance provided
by an agency, grantee, or subgrantee to carry
out activities whereby the grantor anticipates
no programmatic involvement with the grantee
or subgrantee during the performance of the
grant.
(10) "Grantee" means a non-State entity that
receives a grant of state funds from an agency
of the State of North Carolina but does not
include any non-State entity subject to the
audit and other reporting requirements of the
State and Local Government Finance Division
with the North Carolina Department of State
Treasurer.
(11) "Grantor" means an entity that provides
resources, generally financial, to another entity
in order to achieve a specified goal or
objective.
(12) "Non-State Entity" means a firm, corporation,
partnership, association, institution, unit of
local government, public authority, or any
other person, organization, group, or
governmental entity that is not a State agency,
department or institution.
(13) "Public Authority" means a municipal
corporation (other than a unit of local
government) that is not subject to the
Executive Budget Act (Article 1 of G.S. 143)
or a local governmental authority, board,
commission, council, or agency that:
(a) is not a municipal corporation;
(b) is not subject to the Executive Budget
Act; and
(c) operates on an area, regional, or
multi-unit basis, and the budgeting
and accounting systems of which are
not fully a part of the budgeting and
accounting systems of a unit of local
government.
(14) "Single Audit" means an audit that includes an
examination of an organization's financial
statements, internal controls, and compliance
with the requirements of Federal or State
awards.
(15) "Special Appropriation" means a legislative
act authorizing the expenditure of a designated
amount of public funds for a specific purpose.
(16) "State Funds" means any funds appropriated
by the North Carolina General Assembly or
collected by the State of North Carolina. State
funds include federal financial assistance
received by the State and transferred or
disbursed to non-State entities. Both Federal
and State funds maintain their identity as they
are subgranted to other organizations.
(17) "Subgrantee" means a non-State entity that
receives a grant of state funds from a grantee
or from another subgrantee but does not
include any non-State entity subject to the
audit and other reporting requirements of the
State and Local Government Finance Division
with the North Carolina Department of State
Treasurer.
(18) "Unit of Local Government" means a
municipal corporation that is not subject to the
Executive Budget Act (Article 1 of G.S. 143)
and has the power to levy taxes, including a
consolidated city-county, as defined by G.S.
160B-2(1), and all boards, agencies,
commissions, authorities, and institutions
thereof that are not municipal corporations.
Authority G.S. 143-6.2.
SECTION .0200 - RESPONSIBILITIES OF GRANTEES
AND SUBGRANTEES
09 NCAC 03M .0201 DISBURSEMENT AND USE OF
STATE FUNDS
Any grantee that receives, uses, or expends any State funds shall
use or expend those funds only for the purposes for which they
were either appropriated by the North Carolina General
Assembly or collected by the State of North Carolina.
Authority G.S. 143-6.2.
09 NCAC 03M .0202 ALLOWABLE USES OF STATE
FUNDS
Expenditures of State funds by any grantee shall be in
accordance with the State of North Carolina Cost Principles as
developed by the Office of the State Auditor and the Office of
the State Controller. If the grant funding includes federal
sources, the grantee shall ensure adherence to the cost principles
established by the Federal Office of Management and Budget.
Authority G.S. 143-6.2.
09 NCAC 03M .0203 GRANTEE RESPONSIBILITIES
A grantee that receives State funds shall ensure that those funds
are utilized for the purpose of the grant and shall be accountable
for the expenditure of those funds in compliance with reporting
requirements established by this Subchapter. Grantees shall:
(1) Provide the information required by the
grantor agency in order to comply with the
procedures for disbursement of grant funds as
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1476
required by the Office of State Budget and
Management.
(2) Maintain reports and accounting records that
support the allowable expenditure of State
funds. All reports and records shall be made
available for inspection by both the awarding
agency and the Office of the State Auditor for
oversight, monitoring, and evaluation
purposes.
(3) Ensure that subgrantees comply with all
reporting requirements of the grantee.
Authority G.S. 143-6.2.
09 NCAC 03M .0204 SUBGRANTEE
RESPONSIBILITIES
A subgrantee that receives State funds must ensure that those
funds are spent for the purpose of the grant and shall be
accountable for expenditure of those funds in compliance with
reporting requirements established by this Subchapter.
Subgrantees shall:
(1) Provide the information required by the
grantor agency in order to comply with the
procedures for disbursement of grant funds as
required by the Office of State Budget and
Management.
(2) Maintain reports and accounting records that
support the allowable expenditure of State
funds. All reports and records shall be
available for inspection by both the awarding
agency and the Office of the State Auditor for
oversight, monitoring, and evaluation
purposes.
(3) Ensure that any subgrantees comply with all
reporting requirement of the grantee.
Authority G.S. 143-6.2.
09 NCAC 03M .0205 REPORTING THRESHOLDS
AND FORMATS FOR GRANTEES AND SUBGRANTEES
(a) For the purposes of this Subchapter, there are three reporting
thresholds established for grantees and subgrantees receiving
State funds:
(1) Less than $25,000 – A grantee that receives,
uses, or expends State funds in an amount less
than twenty-five thousand dollars ($25,000)
within its fiscal year must comply with the
reporting requirements established by this
Subchapter and the applicable sections of the
State Budget Manual including:
(A) A certification completed by the
grantee Board and management
stating that the State funds were
received, used, or expended for the
purposes for which they were
granted;
(B) An accounting of the State funds
received, used, or expended; and
(C) All reporting requirements shall be
filed with the funding agency within
six months after the end of the
grantee's fiscal year in which the
State funds were received.
(2) $25,000 up to $500,000 - A grantee that
receives, uses, or expends State funds in an
amount of at least twenty-five thousand
($25,000) and up to five hundred thousand
dollars ($500,000) within its fiscal year must
comply with the reporting requirements
established by this Subchapter and the
applicable sections of the State Budget Manual
including:
(A) A certification completed by the
grantee Board and management
stating that the State funds were
received, used, or expended for the
purposes for which they were
granted;
(B) An accounting of the State funds
received, used, or expended;
(C) A description of activities and
accomplishments undertaken by the
grantee with the State funds; and
(D) All reporting requirements shall be
filed with the funding agency within
six months after the end of the
grantee's fiscal year in which the
State funds were received.
(3) Greater than $500,000 – A grantee that
receives, uses, or expends State funds and in
the amount greater than five hundred thousand
dollars ($500,000) within its fiscal year must
comply with the reporting requirements
established by this Subchapter and the
applicable sections of the State Budget Manual
including:
(A) A certification completed by the
grantee Board and management
stating that the State funds were
received, used, or expended for the
purposes for which they were
granted;
(B) An audit completed by the grantee
consistent with the reporting
requirement of this Subchapter;
(C) A description of activities and
accomplishments undertaken by the
grantee with the State funds; and
(D) All reporting requirements shall be
filed with both the funding agency
and the Office of the State Auditor
within nine months after the end of
the grantee's fiscal year in which the
State funds were received.
(b) Unless prohibited by law, the costs of audits made in
accordance with the provisions of this rule are allowable charges
to State and Federal awards. The charges may be considered a
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1477
direct cost or an allocated indirect cost, as determined in
accordance with the provisions of applicable State and Federal
cost principles circulars or other applicable cost principles or
regulations. The cost of any audit not conducted in accordance
with this Subchapter is unallowable and shall not be charged to
State or Federal grants.
(c) The audit requirements in this Subchapter do not replace a
request for submission of audit reports by grantor agencies in
connection with requests for direct appropriation of state aid by
the General Assembly.
(d) Federal law may require a grantee to make additional reports
with respect to funds for which reports are required under this
Subchapter. Notwithstanding the provisions of this Subchapter,
a grantee may satisfy the reporting requirements of Part
(a)(3)(C) of this Rule by submitting a copy of the report required
under the federal law with respect to the same funds.
(e) All grantees and subgrantees shall use the forms of the Office
of State Budget and Management and of the Office of the State
Auditor in making reports to the awarding agencies and the
Office of the State Auditor.
Authority G.S. 143-6.2.
SECTION .0300 - RESPONSIBILITIES OF THE OFFICE
OF THE STATE CONTROLLER
09 NCAC 03M .0301 OFFICE OF THE STATE
CONTROLLER RESPONSIBILITIES
The State Controller has the exclusive authority for issuing of all
warrants, prescribing the manner in which all disbursements are
made, authorizing and rescinding the used of disbursing
accounts by an agency, and requiring the form and regularity of
reporting for these activities. All grantees receiving State funds
shall enter into a disbursing agreement in accordance with the
Office of the State Controller in accordance with G.S. 143-3 and
G.S. 143–3.2.
Authority G.S. 143-6.2.
SECTION .0400 - RESPONSIBILITIES OF AGENCIES
09 NCAC 03M .0401 AGENCY RESPONSIBILITIES
An agency that receives State funds and disburses those funds to
a grantee shall comply with the following reporting
requirements:
(1) Notify each grantee, at the time the grant is
made, of the purpose of the grant and the
reporting requirements established in this
Subchapter.
(2) Prior to disbursing any grant funds:
(a) register with the Office of State
Budget and Management's
Community Resources Information
System (CRIS); and
(b) follow the procedures for
disbursement of grant funds as
required by the Office of State
Budget and Management.
(3) Develop compliance supplement reports that
describe standards of compliance and audit
procedures to give direction to independent
auditors. This report shall be provided to the
State and Local Government Finance Division
with the North Carolina Department of State
Treasurer for inclusion in the North Carolina
State Compliance Supplement.
(4) Provide the Office of the State Auditor with a
listing of each grantee to which the agency
disbursed State funds during the prior fiscal
year by October 31st of each year including
detailed information regarding the purpose and
amount of the grant awarded.
(5) Provide the Office of State Budget and
Management with a listing of every grantee to
which the agency disbursed State funds during
the prior fiscal year by January 31st of each
year. This report shall be consistent with the
disbursement report previously provided to the
Office of the State Auditor including whether
the grantee has complied with the reporting
requirements established in this Subchapter.
(6) Hold grantees accountable for the expenditure
of State funds by performing monitoring and
oversight functions as required in this
Subchapter.
(7) Ensure that funds are spent consistent with the
purposes for which they were granted.
(8) Agencies shall not disburse funds to grantees
that are not in compliance with the reporting
requirements for funds received during the
prior fiscal year. Agencies shall consult with
the Office of State Budget and Management in
making this determination.
(9) The grantor agency shall determine that the
applicable reporting requirement has been met
by the grantee and that all reports have been
completed and submitted. For grantees
receiving less than five hundred thousand
dollars ($500,000), the grantor agency shall
complete a Certification of Compliance to the
Office of the State Auditor.
(10) Each grantor agency shall conduct periodic
monitoring reviews to ensure that State awards
are used for authorized purposes in compliance
with laws, regulations, and the provisions of
grant agreements and that performance goals
are achieved.
(11) Each grantor agency shall monitor compliance
by grantees with all terms of a contract. Upon
determination of noncompliance, the agency
shall give the grantee 60 days written notice to
come into compliance. After the 60-day
period, the grantor agency shall:
(a) terminate the contract and take action
to retrieve unexpended funds or
unauthorized expenditures;
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19:18 NORTH CAROLINA REGISTER March 15, 2005
1478
(b) suspend payments pending
negotiation of a plan of corrective
action; or
(c) offset future payments with the
amount improperly spent.
(12) Each non-State entity shall ensure that
subgrantees have complied with the applicable
provisions of this Subchapter. Failure to
comply with such provisions shall be the basis
for an audit exception.
Authority G.S. 143-6.2.
SECTION .0500 - RESPONSIBILITIES OF THE OFFICE
OF THE STATE AUDITOR
09 NCAC 03M .0501 OFFICE OF THE STATE
AUDITOR RESPONSIBILITIES
Pursuant to the provisions of this Subchapter, the responsibilities
to be performed and documented by the Office of the State
Auditor include:
(1) Review submitted audit reports for those
grantees receiving more than five hundred
thousand dollars ($500,000) in State funds to
determine compliance with applicable
reporting standards.
(2) Maintain grantor agency submitted compliance
data for grantees that receive State funds at
levels below five hundred thousand dollars
($500,000) demonstrating that the grantees
have met the reporting requirements
established by this Subchapter.
(3) Notify disbursing agencies, by January 31st of
each year, of all grantees for which no
compliance data has been received.
(4) Notify disbursing agencies of any material
findings in the audits of grantees throughout
the State fiscal year as reports are received.
(5) Submit a list to the Office of State Budget and
Management by January 31st of each year; of
each grantee that received State funds in the
prior fiscal year including the status of grantee
compliance with the reporting requirements.
(6) A grantee shall, upon request, furnish to the
Office of the State Auditor all books, records,
and other information necessary to account for
the use and expenditure of State funds. The
grantee shall furnish any additional financial
or budgetary information requested by the
Office of the State Auditor. The grantee shall
obtain the audit necessary to comply with
reporting requirements established by this
Subchapter. The Office of the State Auditor
may also request information from or review
the working papers of the grantee's
independent auditor directly related to the use
and expenditure of State grant funds. This
oversight authority also extends to
subgrantees.
Authority G.S. 143-6.2.
SECTION .0600 - RESPONSIBILITIES OF THE OFFICE
OF STATE BUDGET AND MANAGEMENT
09 NCAC 03M .0601 OFFICE OF STATE BUDGET
AND MANAGEMENT RESPONSIBILITIES
The Office of State Budget and Management is responsible for
the development and oversight of rules for the uniform
administration of State grants by all agencies, grantees, and
subgrantees including the oversight of the rules established in
this Subchapter. The Office of State Budget and Management
shall:
(1) Provide consultation to agencies as to whether
grantees have complied with the required
reporting requirements.
(2) Consult with agencies to ensure that all
grantees found in noncompliance have their
funding ceased immediately upon that
determination and ensure that no further
funding will be provided until the grantee is in
compliance.
(3) Maintain a Suspension of Funding list readily
accessible to any interested party that
identifies any grantee found in noncompliance.
This list will serve as notice to other agencies
that no further State grant funding may be
provided to that grantee.
(4) Maintain a Community Resources Information
System database to record grant
documentation required by this Subchapter.
(5) In conjunction with the grantor agency, ensure
reporting requirements have been met prior to
the removal of any grantee from the
Suspension of Funding listing. A grantee
found in noncompliance may appeal to the
Office of State Budget and Management for
corrective action and reinstatement from the
Suspension of Funding list. Once removed
from the Suspension of Funding list, the
grantee is eligible for current and future grants
of State funds.
(6) Take administrative action, when the Director
of Budget finds that the grantee has spent or
encumbered State funds for an unauthorized
purpose, which includes reporting criminal
violations to the Attorney General and the
State Bureau of Investigation.
(7) If the grant funds are a pass-through of funds
granted by an agency of the United States,
consult with the granting agency of the United
States and the State agency that is the recipient
of the pass-through funds prior to taking
actions authorized by this Subchapter.
Authority G.S. 143-6.2.
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SECTION .0700 - CONTRACTING, MONITORING, AND
OVERSIGHT
09 NCAC 03M .0701 GRANT DOCUMENTATION
In consideration of receiving State funds, the grantee shall sign a
contract with the agency that shall contain the obligations of
both parties. Prior to disbursing any State funds, each agency
shall sign a contract with the grantee requiring compliance with
the rules in this Subchapter. The requirements of this Rule shall
also be applicable to all subgrantee relationships.
Authority G.S. 143-6.2.
09 NCAC 03M .0702 SUBORDINATION OF OTHER
CONTRACTS AGREEMENTS
No contract agreements shall act to eliminate or diminish the
requirements contained in this Subchapter.
Authority G.S. 143-6.2.
09 NCAC 03M .0703 REQUIRED CONTRACT
PROVISIONS
Each contract agreement shall contain:
(1) A specification of the purpose of the grant,
services to be provided, objectives to be
achieved, and expected results;
(2) The Source of funds (federal, state, etc.) must
be identified (CFDA number if applicable) and
percentages included where applicable;
(3) Account coding information sufficient to
provide for tracking of the disbursement
through the grantor accounting system;
(4) Agreement to maintain all grant records for a
period of five years or until all audit
exceptions have been resolved, whichever is
longer; and
(5) The following information:
(a) names of all parties to the terms of
the contract; for the grantee or
subgrantee, including the
employer/tax identification number,
address, contact information, and the
grantee/subgrantee fiscal year end
date;
(b) date signatures indicating
authorization by all parties to the
terms of the contract;
(c) duration of the contract, including the
effective and termination dates;
(d) amount of the contract and schedule
of payment(s);
(e) particular duties of the grantee; and
(f) required reports and reporting
deadlines;
(6) Provisions for termination by mutual consent
or for cause with 60 days written notice to the
other party, or as otherwise provided by law;
(7) A provision that the awarding of the grants
subject to allocation and appropriation of
funds to the agency for the purposes set forth
in the contract;
(8) A provision that requires reversion of
unexpended funds to the agency upon
termination of the contract;
(9) A provision that requires compliance with the
rules and reporting requirements outlined in
this Subchapter including audit oversight by
the Office of the State Auditor, the provision
of access to the accounting records by both the
funding entity and the Office of the State
Auditor, and availability of audit work papers
in the possession of any auditor of any
recipient of State funding;
(10) A clause addressing assignability and
subcontracting including the following:
(a) the grantee or subgrantee is not
relieved of any of the duties and
responsibilities of the original
contract; and
(b) the subgrantee agrees to abide by the
standards contained in this
Subchapter, and to provide all
information to allow the grantee to
comply with these standards.
Authority G.S. 143-6.2.
09 NCAC 03M .0704 GRANT MONITORING AND
EVALUATION
(a) Agencies shall ensure that oversight and monitoring of
grantee and subgrantees occurs to prevent the misuse of State
funds. Grantees and subgrantees shall manage the day-to-day
operations of grant-supported activities. Grantors shall monitor
grant-supported activities to assure compliance with applicable
compliance requirements and that performance goals are being
achieved. Grantee monitoring shall cover each program,
function or activity. An evaluation must be performed with a
comparison of actual accomplishments to the measurable
objectives or outcomes established for the grant.
(b) Agencies are responsible for the following:
(1) Grant Identification - At the time the grant is
made, the agency must provide information to
the grantee including the required contract
provisions as well as the applicable
compliance requirements.
(2) During the grant period, the agency shall
monitor the grantee's use of State awards
through reporting, site visits, regular contact,
or other means to provide assurance that the
grantee administers State funds in compliance
with laws, rules, and the provisions of grant
agreements and that performance goals are
achieved.
(3) Ensuring that subgrantees expending five
hundred thousand dollars ($500,000) or more
in State awards during the subgrantee's fiscal
year have met the audit requirements of this
Subchapter and that the required audits are
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completed within nine months of the end of
the subgrantee's audit period; issuing a
management decision on audit findings within
six months after receipt of the subgrantee's
audit report; and ensuring that the subgrantee
takes timely corrective action on all audit
findings.
(4) Take action using sanctions when a subgrantee
has demonstrated a continued inability or
unwillingness to provide required audits.
(5) Evaluate the impact of subgrantee activities on
the agency's ability to comply with applicable
State rules.
(6) Evaluate the results and outcomes of the
activities and accomplishments of the grantee
or subgrantee to determine if results were
achieved, the success of the activity, and
whether the project activities should continue.
Authority G.S. 143-6.2.
SECTION .0800 - SANCTIONS
09 NCAC 03M .0801 NONCOMPLIANCE WITH
RULES
(a) When a non-State entity does not comply with the
requirements of this Subchapter, the agency shall take measures
to ensure that the requirements are met including:
(1) communicating the requirements to the non-
State entity;
(2) requiring a response from the non-State entity
upon a determination of noncompliance; and
(3) suspend payments to the non-State entity until
the non-State entity is incompliance.
(b) Prior to disbursing any State funds, the grantor agency shall
verify that the grantee has complied with the reporting
requirements for the most recent applicable reporting period.
The agency shall consult with the Office of State Budget and
Management during this verification process. A grantor agency
shall not disburse funds to any grantee that has been determined
by the grantor agency to be noncompliant with the reporting
requirements established by this Subchapter.
(c) The grantor agency finds that a non-State entity has used
State funds for an unauthorized purpose, the grantor agency shall
report such findings to the Attorney General, the Office of the
State Budget and Management, the Office of the State Auditor,
and the Office of the State Controller.
(d) If a grantee has not met the reporting requirements
established by this Subchapter and fails to submit revised reports
in accordance with a grantor agency determination letter, the
grantor agency shall suspend further payments to the grantee and
report the grantee to the Office of the State Auditor.
(e) Each agency shall assure compliance by grantees and
subgrantees with all contract terms. Upon determination of non-compliance,
the agency shall give the grantee or subgrantee 60-
days written notice to come into compliance. After the 60-day
period, the agency shall:
(1) terminate the contract and take necessary
action to retrieve unexpended funds and
recover any unauthorized expenditures;
(2) suspend payments pending negotiation of a
plan of corrective action; or
(3) offset future payments with the amount
determined to have been improperly spent.
(f) Each grantor agency shall ensure that grantees and
subgrantees have complied with the applicable provisions of this
Subchapter.
Authority G.S. 143-6.2.
09 NCAC 03M .0802 RECOVERY OF STATE FUNDS
(a) The Attorney General shall assist the Office of State Budget
and Management in the recovery and return of State funds in the
event a grantee or subgrantee:
(1) is unable to fulfill the obligations of the
contractual agreement;
(2) is unable to accomplish the purposes of the
grant;
(3) is noncompliant with the reporting
requirements; or
(4) has inappropriately used the State funds.
(b) Any apparent violations of a criminal law or malfeasance,
misfeasance, or nonfeasance in connection with the use of State
funds shall be reported to the Attorney General and State Bureau
of Investigation.
(c) Civil actions to recover State funds or to obtain other
mandatory orders in the name of the State of North Carolina on
relation of the Attorney General, or in the name of the Office of
State Budget and Management shall be filed in the General
Court of Justice in Wake County.
Authority G.S. 143-6.2.
TITLE 10A – DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Notice is hereby given in accordance with G.S. 150B-21.2 that
the Commission for MH/DD/SAS intends to adopt the rules cited
as 10A NCAC 27G .1701-.1708, .1901-.1904 and amend the rule
cited as 10A NCAC 27G .1301.
Proposed Effective Date: July 1, 2005
Instructions on How to Demand a Public Hearing: (must be
requested in writing within 15 days of notice): A person may
demand a public hearing on the proposed rules by submitting a
request in writing to Cindy Kornegay, 3018 Mail Service Center,
Raleigh, NC 27699-3018 by March 30, 2005.
Reason for Proposed Action: The proposed amendment of 10A
NCAC 27G .1301 and the adoption of 10A NCAC 27G, Section
.1700 is necessary to strengthen current residential treatment
facility licensure rules. The proposed adoption of 10A NCAC
27G, Section .1900 is needed to establish a new licensure
category for psychiatric residential treatment facilities. The
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19:18 NORTH CAROLINA REGISTER March 15, 2005
1481
proposed rule changes represent the first part of a
comprehensive plan to revamp the child residential treatment
service continuum. The proposed rules add additional
safeguards for children and adolescents and establish higher
standards for providers of residential treatment services.
Procedure by which a person can object to the agency on a
proposed rule: The objection, reasons for the objection and
the clearly identified portion of the rule to which the objection
pertains, may be submitted in writing to Cindy Kornegay, 3018
Mail Service Center, Raleigh, NC 27699-3018.
Written comments may be submitted to: Cindy Kornegay,
3018 Mail Service Center, Raleigh, NC 27699-3018, phone 919-
715-2780, fax 919-733-1221, email cindy.kornegay@ncmail.net.
Comment period ends: May 16, 2005
Procedure for Subjecting a Proposed Rule to Legislative
Review: If an objection is not resolved prior to the adoption of
the rule, a person may also submit written objections to the
Rules Review Commission. If the Rules Review Commission
receives written and signed objections in accordance with G.S.
150B-21.3(b2) from 10 or more persons clearly requesting
review by the legislature and the Rules Review Commission
approves the rule, the rule will become effective as provided in
G.S. 150B-21.3(b1). The Commission will receive written
objections until 5:00 p.m. on the day following the day the
Commission approves the rule. The Commission will receive
those objections by mail, delivery service, hand delivery, or
facsimile transmission. If you have any further questions
concerning the submission of objections to the Commission,
please call a Commission staff attorney at 919-733-2721.
Fiscal Impact
State
Local
Substantive (>$3,000,000)
None
CHAPTER 27 – MENTAL HEALTH: COMMUNITY
FACILITIES AND SERVICES
SUBCHAPTER 27G - RULES FOR MENTAL HEALTH,
DEVELOPMENTAL DISABILITIES, AND
SUBSTANCE ABUSE FACILITIES AND SERVICES
SECTION .1300 - RESIDENTIAL TREATMENT
PROGRAM FACILITY FOR CHILDREN
AND ADOLESCENTS WHO ARE EMOTIONALLY
DISTURBED OR WHO HAVE A MENTAL ILLNESS
10A NCAC 27G .1301 SCOPE
(a) A residential treatment program facility for children and
adolescents is a free-standing residential facility which provides
a structured living environment within a system of care approach
for children and adolescents who have a primary diagnosis of
mental illness or emotional disturbance and who may also have
other disabilities.disabilities and for whom removal from home
is essential to facilitate treatment.
(b) A facility providing residential treatment, level III service
shall be licensed as set forth in 10A NCAC 27G .1700.
(c)(b) Services shall be designed to address the functioning
level of the child or adolescent and include training in self-control,
communication skills, social skills, and recreational
skills. Some children Children or adolescents may be able to
may receive education services in a day treatment facility or
public school. Children or adolescents may also have a job
placement. facility, have a job placement, or attend public
schools; for others, special education services may need to be
offered within the residential setting.
(d)(c) Services are designed to support the child or adolescent in
gaining the skills necessary to return to a natural or therapeutic
home setting. The target populations to be served in a
residential setting are children and adolescents for whom
removal from home to a community-based residential setting is
essential to facilitate treatment. Residential treatment is targeted
toward children and adolescents who no longer meet criteria for
inpatient psychiatric services or intensive residential treatment
and need a step-down placement in the community, or those who
have been placed in non-residential community setting and need
a more intensive treatment program.
(e)(d) Treatment, services, and discharge plans provided by
residential treatment program facilities shall be coordinated with
other individuals and agencies within the client's local system of
care.
Authority G.S. 122C-26; 143B-147.
SECTION .1700 - RESIDENTIAL TREATMENT FOR
CHILDREN AND ADOLESCENTS WHO
ARE EMOTIONALLY DISTURBED OR WHO
HAVE A MENTAL ILLNESS
10A NCAC 27G .1701 SCOPE
(a) A residential treatment facility for children and adolescents
is a free-standing residential facility that provides intensive,
active therapeutic treatment and interventions within a system of
care approach.
(b) A private family residence shall not be licensed as a
residential treatment facility.
(c) Services shall be designed to include individualized,
constant supervision and structure of daily living designed to
minimize the occurrence of behaviors related to functional
deficits, to ensure safety and deescalate out-of-control behaviors
including frequent crisis management with or without physical
restraint or to maintain optimum level of functioning.
(d) Some children or adolescents may be able to receive
services in a day treatment facility, have a job placement, or
attend public schools; for others, special education services may
need to be offered within the residential setting.
(e) The populations to be served in a residential setting are
children and adolescents for whom removal from home to a
community-based residential setting is essential to facilitate
treatment.
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(f) Residential treatment is targeted toward children and
adolescents who do not meet criteria for inpatient psychiatric
services but do require treatment in a staff secure setting.
(g) Staff secure means staff are required to be awake during
client sleep hours and supervision shall be continuous.
(h) Services shall be designed to support the child or adolescent
in gaining the skills necessary to step-down into a less intensive
treatment setting.
(i) Treatment, services, and discharge plans provided by
residential treatment facilities shall be coordinated with other
individuals and agencies within the client's system of care.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1702 QUALIFICATIONS AND
REQUIREMENTS OF THE DIRECTOR
(a) Each facility shall have a director who is a qualified
professional as set forth in 10A NCAC 27G .0104(18). The
director shall work a minimum of 32 hours each week, of which
at least 70% shall occur when children or adolescents are awake
and present.
(b) The governing body responsible for each facility shall
develop and implement written policies that specify the clinical
and administrative responsibilities of the director. At a
minimum these policies shall include:
(1) supervision of the group home manager;
(2) provision of direct psychoeducational services
to children and adolescents;
(3) participation in service planning meetings;
(4) coordination of each child or adolescent's
treatment plan; and
(5) provision of basic case management functions.
(c) The director shall meet the Provider Requirement and
Supervision standards as set forth in the Division of Medical
Assistance Clinical Policy Number 8D-2, Residential Treatment
Services, including subsequent amendments and editions. A
copy of Clinical Policy 8D-2 is available from DMH/DD/SAS at
a price to cover printing, handling and postage.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1703 REQUIREMENTS FOR GROUP
HOME MANAGERS
(a) Each facility shall have a full-time group home manager
who is an associate professional as set forth in 10A NCAC 27G
.0104(1).
(b) The governing body responsible for each facility shall
develop and implement written policies that specify the
responsibilities of the group home manager. At a minimum
these policies shall address the following:
(1) management of the day to day operations of
the facility;
(2) supervision of paraprofessionals regarding
responsibilities related to the implementation
of each child or adolescent’s treatment plan;
(3) participation in service planning meetings.
(c) Group home managers shall meet the Provider Requirement
and Supervision standards as set forth in the Division of Medical
Assistance Clinical Policy Number 8D-2, Residential Treatment
Services, including subsequent amendments and editions. A
copy of Clinical Policy 8D-2 is available from DMH/DD/SAS at
a price to cover printing, handling and postage.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1704 REQUIREMENTS FOR
PARAPROFESSIONALS
(a) There shall be two staff present in the facility at all times
when children and adolescents are present. At least one
paraprofessional staff member shall be present with every two
children or adolescents. If children or adolescents are cared for
in separate buildings, the ratios shall apply to each building.
(b) The minimum number of paraprofessionals required is as
follows:
(1) one paraprofessional shall be present for one,
two or three children or adolescents;
(2) two paraprofessionals shall be present for four
or five children or adolescents;
(3) three paraprofessionals shall be present for six
or seven children or adolescents;
(4) four paraprofessionals shall be present for
eight or nine children or adolescents;
(5) five paraprofessionals shall be present for 10
or 11 children or adolescents; and
(6) six paraprofessionals shall be present for 12
children or adolescents.
(c) Paraprofessionals shall meet the Provider Requirement and
Supervision standards as set forth in the Division of Medical
Assistance Clinical Policy Number 8D-2, Residential Treatment
Services, including subsequent amendments and editions. A
copy of Clinical Policy 8D-2 is available from DMH/DD/SAS at
a price to cover printing, handling and postage.
(d) An additional emergency on-call paraprofessional staff shall
be readily available by telephone or page and able to reach the
facility within 30 minutes.
(e) One staff member is required to be present at all times when
children or adolescents are away from the facility.
(f) Paraprofessional staff are awake during client sleep hours
and supervision shall be continuous.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1705 REQUIREMENTS OF LICENSED
BEHAVIORAL HEALTH PROFESSIONALS
(a) Face to face clinical consultation shall be provided in each
facility at least four hours a week by a licensed behavioral health
professional.
(b) The consultation specified in Paragraph (a) of this Rule shall
include:
(1) clinical supervision of the director;
(2) individual, group or family therapy services;
and
(3) involvement in client specific treatment plans
or overall program treatment issues.
(c) Licensed behavioral health professionals shall meet the
Provider Requirement and Supervision standards as set forth in
the Division of Medical Assistance Clinical Policy Number 8D-
2, Residential Treatment Services, including subsequent
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19:18 NORTH CAROLINA REGISTER March 15, 2005
1483
amendments and editions. A copy of Clinical Policy 8D-2 is
available from DMH/DD/SAS at a price to cover printing,
handling and postage.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1706 OPERATIONS
(a) Capacity. Each facility shall serve no more than a total of 12
children and adolescents.
(b) Family Involvement. Family members or other responsible
adults shall be involved in development of plans in order to
assure a smooth transition to a less restrictive setting.
(c) Education. Children and adolescents residing in a residential
treatment facility shall receive appropriate educational services,
either through a facility-based school, 'home-based' services, or
through a day treatment program. Transition to a public school
setting shall be part of the treatment plan.
(d) Psychiatric consultation shall be available as needed for
each client.
(e) Age Limitation. If an adolescent has his 18th birthday while
receiving treatment in a residential facility, he may continue in
the facility for six months or until the end of the state fiscal year,
whichever is longer.
(f) Clothing. Each child or adolescent shall have his own
clothing and shall have training and help in its selection and
care.
(g) Personal Belongings. Each child or adolescent shall be
entitled to age-appropriate personal belongings unless such
entitlement is counter-indicated in the treatment plan.
(h) Hours of Operation. Each facility shall operate 24 hours per
day, seven days per week, each day of the year.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1707 PERSONS PERMITTED IN THE
FACILITY
(a) Only admitted children or adolescents, legally responsible
persons, staff; other family and friends identified in the
treatment plan and others invited or permitted by the facility
director shall be permitted on the premises.
(b) Individuals other than those specified in Paragraph (a) of
this Rule are prohibited from entering the facility except in
instances of emergency or as permitted by law.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1708 TRANSFER OR DISCHARGE
(a) The purpose of this Rule is to address communication
procedures concerning the transfer or discharge of a child or
adolescent from one facility to another facility.
(b) The residential treatment facility shall meet with the
parent(s) or legal guardian, area authority or county program
representative(s) and other representatives involved in the care
and treatment of the child or adolescent, including local
Department of Social Services, Local Education Agency and
criminal justice agency, to make service planning decisions prior
to the transfer or discharge of the child or adolescent from one
facility to another. Existing child and family teams may be used
for this purpose.
(c) In case of an emergency, the facility shall notify the
treatment team including the legally responsible person of the
transfer or discharge of the child or adolescent as soon as the
emergency situation is stabilized.
(d) In case of an emergency, notification may be by telephone.
A service planning meeting as set forth in Paragraph (b) of this
Rule shall be held within five business days of an emergency
transfer or discharge.
Authority G.S. 122C-26; 143B-147.
SECTION .1900 PSYCHIATRIC RESIDENTIAL
TREATMENT FACILITY FOR CHILDREN AND
ADOLESCENTS WHO HAVE A MENTAL ILLNESS OR
SUBSTANCE ABUSE OR DEPENDENCE
10A NCAC 27G .1901 SCOPE
(a) A psychiatric residential treatment facility (PRTF) provides
care for children and adolescents who have mental illness or
substance abuse/dependency in a non-acute inpatient setting.
The facility provides a structured living environment for
children and adolescents who do not meet criteria for acute
inpatient care, but do require supervision and specialized
interventions on a 24-hour basis. Therapeutic interventions
address functional deficits associated with the child or
adolescent's diagnosis and include psychiatric treatment and
specialized substance abuse and mental health therapeutic care.
(b) Therapeutic interventions and services shall be designed to
address the treatment needs necessary to facilitate a move to a
less intensive community setting.
(c) The populations to be served in a PRTF are children and
adolescents for whom removal from home or a community-based
residential setting is essential to facilitate treatment.
(d) Treatment, services and discharge plans shall be coordinated
with other individuals and agencies within the child or
adolescent’s catchment area.
(e) A PRTF shall be accredited through one of the following;
Joint Commission on Accreditation of Healthcare Organizations;
the Commission on Accreditation of Rehabilitation Facilities;
the Council on. Accreditation or other national accrediting
bodies as set forth in the Division of Medical Assistance Clinical
Policy Number 8D-1, Psychiatric Residential Treatment Facility,
including subsequent amendments and editions. A copy of
Clinical Policy Number 8D-1 is available from DMH/DD/SAS
at a price to cover printing, handling and postage.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1902 STAFF
(a) Each facility shall have a director who is a physician board-eligible
or certified in child psychiatry or a general psychiatrist
with demonstrated experience in the treatment of children and
adolescents with mental illness.
(b) At all times, at least two paraprofessional staff members
shall be present with every six children or adolescents in each
residential unit.
(c) Staff shall meet the Provider Requirement and Supervision
standards as set forth in the Division of Medical Assistance Clinical
Policy Number 8D-1, Psychiatric Residential Treatment Facility,
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1484
including subsequent amendments and editions. A copy of Clinical
Policy 8D-1 is available from DMH/DD/SAS at a price to cover
printing, handling and postage.
(d) If the facility is hospital based, staff shall be specifically
assigned to this program, with responsibilities clearly separate
from those performed on an acute medical unit or other
residential units.
(e) Each child or adolescent admitted to a facility shall have a
weekly consultation with a psychiatrist to review medications.
(f) Consultation with staff from the responsible area authority or
county program shall occur regularly in order to assist with the
development of a treatment plan in a community-based setting.
(g) Twenty-four hour coverage by a registered nurse is required.
Authority G.S. 122C-26; 143B-147.
10A NCAC 27G .1903 OPERATIONS
(a) Capacity. Each unit shall serve no more than a total of 12
persons. If the facility has more than one residential unit, the
capacity of each unit shall be limited to 12 children and
adolescents. Any facility licensed or approved to provide these
services for a greater capacity as of the effective date of these
Rules shall continue to provide services at no more than the
licensed or approved capacity.
(b) Residential units. Each residential unit shall be
administered, staffed, and located to function separately from all
other residential units in the facility.
(c) Length Of Stay. Efforts for discharge to a less restrictive
community residential setting shall be documented from the date
of admission.
(d) Hours Of Operation. Each facility shall operate 24-hours a
day, seven days a week, each day of the year.
(e) Family Involvement. Family members or other responsible
adults shall be involved in the development and implementation
of treatment plans in order to assure a smooth transition to a less
restrictive setting.
(f) Education. Children and adolescents residing in a PRTF
shall receive educational services through a facility-based
school. Educational services shall meet applicable standards as
required by federal and State law.
(g) Clothing. Each child or adolescent shall have his own
clothing and shall have training and help in its selection and
care.
(h) Personal Belongings. Each child or adolescent shall be
entitled to age-appropriate personal belongings unless such
entitlement is counter-indicated in the treatment plan.
(i) Transition Planning. Discharge planning begins on the day
of admission. Family members or guardians or both of the child
shall be present at discharge planning meetings.
Authority G.S. 143B-147.
10A NCAC 27G .1904 TRANSFER OR DISCHARGE
(a) The purpose of this Rule is to address communication
procedures concerning the transfer or discharge of a child or
adolescent from one facility to another facility.
(b) The PRTF shall meet with the parent(s) or legal guardian,
area authority or county program representative(s) and other
representatives involved in the care and treatment of the child or
adolescent including local Department of Social Services, Local
Education Agency and criminal justice agency, to make service
planning decisions prior to the transfer or discharge of the child
or adolescent from one facility to another. Existing child and
family teams may be used for this purpose.
(c) In case of an emergency, the facility shall notify the
treatment team including the legally responsible person of the
transfer or discharge the child or adolescent as soon as the
emergency situation is stabilized.
(d) In case of an emergency, notification may be by telephone.
A service planning meeting as set forth in Paragraph (b) of this
Rule shall be held within five business days of an emergency
transfer or discharge.
Authority G.S. 122C-26; 143B-147.
TITLE 21 – OCCUPATIONAL LICENSING BOARDS
CHAPTER 14 - STATE BOARD OF COSMETIC
ART EXAMINERS
Notice is hereby given in accordance with G.S. 150B-21.2 that
the Board of Cosmetic Art Examiners intends to amend the rule
cited as 21 NCAC 14P .0105.
Proposed Effective Date: July 1, 2005
Public Hearing:
Date: March 30, 2005
Time: 10:00 a.m.
Location: NC State Board of Cosmetic Art Examiners, 1201-
110 Front Street, Raleigh, NC
Reason for Proposed Action: Change in rules and regulations
on civil penalties.
Procedure by which a person can object to the agency on a
proposed rule: If you have any objections to the proposed rule,
please forward a typed or handwritten letter indicating your
specific reason(s) for your objection(s) to Souk Rios, NC Board
of Cosmetic Art Examiners, 1201-110 Front Street, Raleigh, NC
27609.
Written comments may be submitted to: Souk Rios, 1201-110
Front Street, Raleigh, NC 27609, phone 919-733-4117, ext. 222,
fax 919-733-4127, email srios@intrex.net.
Comment period ends: May 16, 2005
Procedure for Subjecting a Proposed Rule to Legislative
Review: If an objection is not resolved prior to the adoption of
the rule, a person may also submit written objections to the
Rules Review Commission. If the Rules Review Commission
receives written and signed objections in accordance with G.S.
150B-21.3(b2) from 10 or more persons clearly requesting
review by the legislature and the Rules Review Commission
approves the rule, the rule will become effective as provided in
G.S. 150B-21.3(b1). The Commission will receive written
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1485
objections until 5:00 p.m. on the day following the day the
Commission approves the rule. The Commission will receive
those objections by mail, delivery service, hand delivery, or
facsimile transmission. If you have any further questions
concerning the submission of objections to the Commission,
please call a Commission staff attorney at 919-733-2721.
Fiscal Impact
State
Local
Substantive (>$3,000,000)
None
SUBCHAPTER 14P – CIVIL PENALTY
SECTION .0100 – CIVIL PENALTY
21 NCAC 14P .0105 RENEWALS; EXPIRED
LICENSES; LICENSES REQUIRED:
(a) The presumptive civil penalty for operating a cosmetic art
shop/school with an expired license is:
(1) 1st offense warning
($100.00)
(2) 2nd offense $250.00
(3) 3rd offense $500.00
(b) The presumptive civil penalty for practicing cosmetology,
manicuring, or esthetics with an expired license is:
(1) 1st offense warning
($100.00)
(2) 2nd offense $250.00
(3) 3rd offense $500.00
(c) The presumptive civil penalty for allowing an apprentice or
someone with a temporary permit to practice cosmetic art
without direct supervision is:
(1) 1st offense $100.00
(2) 2nd offense $300.00
(3) 3rd offense $500.00
(d) The presumptive civil penalty for practicing in a cosmetic
art shop with an apprentice license or a temporary permit
without direct supervision is:
(1) 1st offense $100.00
(2) 2nd offense $300.00
(3) 3rd offense $500.00
(e) The presumptive civil penalty for an improperly licensed
cosmetic art shop (incorrect number of chairs licensed) is:
(1) 1st offense warning
($50.00)
(2) 2nd offense $100.00
(3) 3rd offense $200.00
(f) The presumptive civil penalty for teaching with an expired
license is:
(1) 1st offense warning
($100.00)
(2) 2nd offense $250.00
(3) 3rd offense $500.00
Authority G.S. 88B-4; 88B-21; 88B- 23(a); 88B-24: 88B-29.
* * * * * * * * * * * * * * * * * * * *
CHAPTER 57 – REAL ESTATE APPRAISAL BOARD
Notice is hereby given in accordance with G.S. 150B-21.2 that
the Appraisal Board intends to amend the rules cited as 21
NCAC 57A .0201-.0202, .0204, .0206,.0210, .0303, .0404, .0403,
.0406-.0407, .0501 and 21 NCAC 57B .0101, .0209-.0210,
.0302-.0304,.306, .0603-.0604, .0606, .0608.
Proposed Effective Date: July 1, 2005
Public Hearing:
Date: April 19, 2005
Time: 9:00 a.m.
Location: 3900 Barrett Drive, Suite 101, Raleigh, NC
Reason for Proposed Action: Staff review of rules indicated a
need to clarify several of them. More specific direction is
needed for applicants for licensure. Additional clarification is
needed for trainee supervision and registration. There has been
confusion regarding continuing education requirements.
Procedure by which a person can object to the agency on a
proposed rule: Send written comments or an email to, or call
the rulemaking coordinator. Attend the public hearing.
Written comments may be submitted to: Roberta Ouellette,
P.O. Box 20500, Raleigh, NC 27619, phone (919)420-7920, fax
(919)420-7925, email roberta@.ncab.org.
Comment period ends: May 16, 2005
Procedure for Subjecting a Proposed Rule to Legislative
Review: If an objection is not resolved prior to the adoption of
the rule, a person may also submit written objections to the
Rules Review Commission. If the Rules Review Commission
receives written and signed objections in accordance with G.S.
150B-21.3(b2) from 10 or more persons clearly requesting
review by the legislature and the Rules Review Commission
approves the rule, the rule will become effective as provided in
G.S. 150B-21.3(b1). The Commission will receive written
objections until 5:00 p.m. on the day following the day the
Commission approves the rule. The Commission will receive
those objections by mail, delivery service, hand delivery, or
facsimile transmission. If you have any further questions
concerning the submission of objections to the Commission,
please call a Commission staff attorney at 919-733-2721.
Fiscal Impact
State
Local
Substantive (>$3,000,000)
None
SUBCHAPTER 57A - REGISTRATION LICENSING,
CERTIFICATION AND PRACTICE
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1486
SECTION .0200 – TRAINEE REGISTRATION,
APPRAISER LICENSING AND CERTIFICATION
21 NCAC 57A .0201 QUALIFICATIONS FOR
TRAINEE REGISTRATION, APPRAISER LICENSURE
AND CERTIFICATION
(a) Applicants for trainee registration, licensure as a state-licensed
licensed residential real estate appraiser and for
certification as a state-certified certified real estate appraiser
must satisfy the qualification requirements stated in G.S. 93E-1-
6 as further set forth in Subparagraphs (a)(1), (a)(2), (a)(3), and
(a)(4) of this Rule, provided however that registration as a
trainee or licensure as a state-licensed licensed residential real
estate appraiser is not prerequisite for certification as a state-certified
certified residential or general real estate appraiser:
(1) Applicants for trainee registration shall have
completed, within the five-year period
immediately preceding the date application is
made, 90 hours of education in the areas of
Introduction to Real Estate Appraisal,
Valuation Principles and Practices, Applied
Residential Property Valuation, and, effective
January 1, 2003, the Uniform Standards of
Professional Appraisal Practice (USPAP) or
appraisal education found by the Board to be
equivalent to such courses.
(2) Applicants for licensure as a state-licensed
licensed residential real estate appraiser shall
have completed, within the five-year period
immediately preceding the date application is
made, 90 hours of education as set forth in
Subparagraph (a)(1) of this Rule, and shall
have obtained have at least 2,000 hours of
appraisal experience. experience acquired
within the five-year period immediately
preceding the date application is made and
over a minimum period of 18 calendar months.
Applicants must have been actively engaged in
real estate appraising for at least 18 months
prior to the date application is made.
(3) Applicants for certification as a state-certified
certified residential real estate appraiser shall
have completed those courses required for
registration as a trainee or licensure as a state-licensed
licensed residential real estate
appraiser or equivalent education and, in
addition, within the five-year period
immediately preceding the date application is
made, a course in Introduction to Income
Property Appraisal consisting of at least 30
classroom hours of instruction or equivalent
education; and shall have obtained at least
2,500 hours of appraisal experience acquired
within the five-year period immediately
preceding the date application is made and
over a minimum period of two calendar years.
Applicants must have been actively engaged in
real estate appraising for at least two calendar
years prior to the date application is made. At
least 50 percent of this appraisal experience
must have been of one to four family
residential properties in which the sales
comparison approach was utilized in the
appraisal process.
(4) Applicants for certification as a state-certified
certified general real estate appraiser shall
have completed those courses required for
certification as a state-certified certified
residential real estate appraiser or equivalent
education and, in addition, within the five-year
period immediately preceding the date
application is made, courses in Advanced
Income Capitalization Procedures and Applied
Income Property Valuation each consisting of
at least 30 classroom hours of instruction or
equivalent education; and shall have obtained
at least 3,000 hours of appraisal experience
acquired within the five-year period
immediately preceding the date application is
made and over a minimum period of two and a
half calendar years of which at least 50 percent
must have been in appraising non-residential
real estate. Applicants must have been actively
engaged in real estate appraising for at least
two and a half calendar years prior to the date
application is made. At least 50 percent of the
non-residential appraisal experience must have
been of complex properties or of improved
properties in which the income approach was
utilized in the appraisal process.
(b) Applicants for licensure or certification may be required to
provide to the Board copies of appraisal reports in support of
experience credit. All appraisals submitted in support of
experience credit must comply with the Uniform Standards of
Professional Appraisal Practice (USPAP) and with any
applicable state statutes or rules.
(c) When a trainee becomes a state-licensed licensed or state-certified
certified real estate appraiser or when a state-licensed
licensed real estate appraiser becomes certified as a state-certified
real estate appraiser, his registration or licensure shall
be immediately canceled by the Board. When a state-certified
certified residential real estate appraiser becomes certified as a
state-certified general real estate appraiser, his previous
certification as a state-certified residential real estate appraiser
shall be immediately canceled by the Board.
(d) In the event that the Board asks an applicant to submit
updated information or provide further information necessary to
complete the application and the applicant fails to submit such
information within 90 days following the Board's request, the
Board shall cancel the applicant's application and the application
fee will be retained by the Board. An applicant whose
application has been cancelled and who wishes to obtain a
registration, license or certificate must start the licensing process
over by filing a complete application with the Board and paying
all required fees.
Authority G.S. 93E-1-6(a); 93E-1-10.
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19:18 NORTH CAROLINA REGISTER March 15, 2005
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21 NCAC 57A .0202 FITNESS FOR REGISTRATION,
LICENSURE OR CERTIFICATION
(a) The Appraisal Board shall consider the fitness for
registration, licensure or certification of each applicant who has
passed the appropriate examination. When the fitness of an
applicant is in question, action by the Board will be deferred
until the applicant has affirmatively demonstrated that the
applicant possesses the requisite competency, truthfulness,
honesty and integrity.
(b) When the application is deferred, the Board shall notify the
applicant and the applicant shall be entitled to demonstrate his or
her competency or fitness for registration, licensure or
certification at a hearing before the Board.
(c) The inquiry into fitness for registration, licensure or
certification may include consideration of whether the applicant
has had any disciplinary action taken against any professional
license in North Carolina or any other state, or whether the
applicant has committed or done any act which, if committed or
done by any real estate trainee or appraiser , would be grounds
under the provisions hereinafter set forth for disciplinary action
including the suspension or revocation of registration, licensure,
or certification, or whether the applicant has been convicted of
or pleaded guilty to any criminal act. act, or whether any such
actions or charges are pending.
(d). Notice to the applicant that his or her competency or fitness
for registration, licensure or certification is in question shall be
in writing, sent by certified mail, return receipt requested, to the
address shown upon the application. The applicant shall have 60
days from the date of receipt of this notice to request a hearing
before the Board. Failure to request a hearing within this time
shall constitute a waiver of the applicant's right to a hearing on
his or her application for trainee registration, licensing or
certification, and the application shall be deemed denied.
Nothing in this Rule shall be interpreted to prevent an applicant
from reapplying for registration, licensure or certification.
Authority G.S. 93E-1-10.
21 NCAC 57A .0204 CONTINUING EDUCATION
(a) All registered trainees, real estate appraiser licensees and
certificate holders shall, upon the second renewal of their
registration, license or certificate following their registration,
licensure or certification by the Board, present evidence
satisfactory to the Board of having obtained continuing
education as required by this Section. Registered trainees who
were initially registered with the Board after January 1 of an odd
numbered year will not be required to show continuing
education credit for renewal of their registration in that odd
numbered year.
(b) Each trainee, licensee and certificate holder who is required
to complete continuing education pursuant to Paragraph (a) of
this Rule must complete 28 hours of continuing education
between July 1, 2003 and June 30, 2005 and prior to June 30 of
every odd numbered year thereafter. Except as provided in
Paragraphs (g) and (h) of this Rule, such education must have
been obtained by taking courses approved by the Board for
continuing education purposes. Such education must relate to
real estate appraisal and must contribute to the goal of improving
the knowledge, skill and competence of trainees, state-licensed
licensed and state-certified certified real estate appraisers. There
is no exemption from the continuing education requirement for
trainees or appraisers whose registered, licensed or certified
status has been upgraded to the level of licensed residential,
certified residential or certified general appraiser since the
issuance or most recent renewal of their registration, license or
certificate, and courses taken to satisfy the requirements of a
higher level of certification may not be applied toward the
annual continuing education requirement. Trainees, licensees
and certificate holders may not take the same continuing
education course more than once during the two year continuing
education cycle. The seven hour National USPAP update course
may be taken once for each edition of USPAP.
(c) Each appraisal continuing education course must involve a
minimum of three and one-half classroom hours of instruction
on real estate appraisal or related topics such as the application
of appraisal concepts and methodology to the appraisal of
various types of property; specialized appraisal techniques; laws,
rules or guidelines relating to appraisal; standards of practice and
ethics; building construction; financial or investment analysis;
land use planning or controls; feasibility analysis; statistics;
accounting; or similar topics. The trainee, license or certificate
holder must have attended at least 90 percent of the scheduled
classroom hours for the course in order to receive credit for the
course.
(d) Beginning July 1, 2003, each Each trainee, licensee and
certificate holder who is required to complete continuing
education pursuant to .0204(a) must, as part of the 28 hours of
continuing education required in .0204(b) of this Section,
complete the seven hour National Uniform Standards of
Professional Appraisal Practice (USPAP) update course, as
required by the Appraiser Qualifications Board of the Appraisal
Foundation, or its equivalent, prior to June 30, 2005 and prior to
June 30 15 of every odd numbered year.
(e) A licensee who elects to take approved continuing education
courses in excess of the minimum requirement shall not carry
over into the subsequent years any continuing education credit.
(f) Course sponsors must provide a prescribed certificate of
course completion to each trainee, licensee and certificate holder
satisfactorily completing a course. In addition, course sponsors
must send directly to the Board a certified roster of all who
successfully completed the course. This roster must be sent
within 15 days of completion of the course, but not later than
June 30 of each year. In order to renew a registration, license or
certificate in a timely manner, the Board must receive proper
proof of satisfaction of the continuing education requirement
prior to processing a registration, license or certificate renewal
application. If proper proof of having satisfied the continuing
education requirement is not provided, the registration, license
or certificate shall expire and the trainee, licensee or certificate
holder shall be subject to the provisions of Rules .0203(e) and
.0206 of this Section.
(g) A current or former trainee, licensee or certificate holder
may request that the Board grant continuing education credit for
a course taken by the trainee, licensee or certificate holder that is
not approved by the Board, or for appraisal education activity
equivalent to a Board-approved course, by making such request
and submitting a non-refundable fee of fifty dollars ($50.00) for
each course or type of appraisal education activity to be
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1488
evaluated. Continuing education credit for a non-approved
course shall be granted only if the trainee, licensee or certificate
holder provides satisfactory proof of course completion and the
Board finds that the course satisfies the requirements for
approval of appraisal continuing education courses with regard
to subject matter, course length, instructor qualifications, and
student attendance. Appraisal education activities for which
credit may be awarded include, but are not limited to, teaching
appraisal courses, authorship of appraisal textbooks, and
development of instructional materials on appraisal subjects. The
awarding of credit for such activities is wholly discretionary on
the part of the Board. Trainees or licensed or certified appraisers
who have taught an appraisal course or courses approved by the
Board for continuing education credit shall be deemed to have
taken an equivalent course and shall not be subject to the fifty
($50.00) fee, provided they submit verification satisfactory to
the Board of having taught the course(s). A trainee, licensee or
certificate holder who teaches a Board-approved continuing
education course may not receive continuing education credit for
the same course more than once every three years, regardless of
how often he teaches the course.
(h) A trainee, state-licensed or state-certified real estate
appraiser licensee or certificate holder may receive continuing
education credit by taking any of the Board-approved
prelicensing or precertification courses or their approved
equivalents. These courses cannot be used for both continuing
education credit and for credit for licensing purposes. In order to
receive continuing education credit for these courses, the
examination must be taken. Trainee, licensees and certificate
holders who wish to use a prelicensing course for continuing
education credit must comply with the provisions of 21 NCAC
57B .0604.
(i) A trainee, licensee or certificate holder may request in
writing and be granted an extension of time to satisfy the
continuing education requirements if he provides evidence
satisfactory to the Board that he was unable to obtain the
necessary education due to an incapacitating illness, military
assignment outside the 50 states, or similar condition. If an
extension of time is granted, the trainee, licensee or certificate
holder shall be permitted to renew or reinstate, as appropriate,
his registration, license or certificate for that period of time for
which the extension was granted. The granting of such request
and the length of any extension of time granted are wholly
discretionary on the part of the Board.
Authority G.S. 93E-1-7(a); 93E-1-10.
21 NCAC 57A .0206 EXPIRED REGISTRATION,
LICENSE OR CERTIFICATE
(a) Expired registrations, licenses and certificates may be
reinstated within 12 months after expiration upon proper
application, payment to the Board of the two-hundred dollar
($200.00) renewal fee plus a late filing fee of five dollars ($5.00)
per month for each month or part thereof that such registration,
license or certificate is lapsed, and provision of proof of having
obtained the continuing education that would have been required
had the registration, license or certificate been continuously
renewed.
(b) If the registration, license or certificate has been expired for
more than 12 months, a request for reinstatement will be treated
as an original application. In order to be considered for
reinstatement, the applicant must pay the one-hundred fifty
dollar ($150.00) original registration, license or certificate fee
and include in the application a detailed description of the
applicant's appraisal education and experience during the period
of registration, licensure or certification and during the time of
expiration. Such applications will be reviewed by the Board to
determine whether an examination, additional real estate
appraisal education or additional appraisal experience will be
required. In addition, the Board may, in its discretion, consider
whether the applicant for reinstatement has any prior or current
disciplinary actions, and may examine the applicant's fitness for
registration, licensure or certification before granting the request
for reinstatement.
(c) A request for reinstatement will be not granted if the
registration, license or certificate has been expired for more than
24 months.
(c)(d) Reinstatement is effective the date it is issued by the
Board. It is not retroactive.
Authority G.S. 93E-1-6(b); 93E-1-7; 93E-1-10.
21 NCAC 57A .0210 TEMPORARY PRACTICE
(a) A real estate appraiser from another state who does not
reside in North Carolina and who is licensed or certified by the
appraiser licensing or certifying agency in such another state
may apply to receive temporary appraiser licensing or
certification privileges in this State by filing a notarized
application with the Board.
(b) Upon filing a properly completed application accompanied
by a fee of one hundred fifty dollars ($150.00) and otherwise
satisfying the Appraisal Board as to his or her qualifications,
eligibility and moral fitness for temporary licensing or
certification privileges, an applicant shall be granted a temporary
practice permit by the Board authorizing the applicant to
perform in this State the appraisal assignment described in such
application, provided that the length of time projected by the
applicant for completion of the assignment is reasonable given
the scope and complexity of the assignment. The fee must be
paid by money order, certified check or cashier's check. As part
of the examination for moral fitness, the Board may consider
whether an applicant's trainee registration or appraiser license or
certification is or has been subject to discipline in their resident
state or any other state, and may consider all other information
outlined in Rule .0202(c) of this Section.
(d) Persons granted temporary practice privileges under this
Rule shall not advertise or otherwise hold themselves out as
being a North Carolina trainee or state-licensed or state-certified
appraiser.
(e) A trainee may apply for a temporary practice permit and the
provisions of Sections (a), (b) and (c) above shall apply. The
supervising appraiser for the trainee must be a North Carolina
state-licensed licensed or state-certified certified appraiser. If
not, the supervising appraiser must be licensed or certified as a
real estate appraiser in another state and must also receive a
temporary practice permit for the same assignment as the
trainee. The term "trainee" shall include apprentices and others
PROPOSED RULES
19:18 NORTH CAROLINA REGISTER March 15, 2005
1489
who are licensed and regulated by a state agency to perform real
estate appraisals under the supervision of a licensed or certified
appraiser.
(f) An applicant for a temporary practice permit may not begin
performing any appraisal work in this State until the temporary
practice permit has been issued by the Board.
Authority G.S. 93E-1-9(c) and (d); 93E-1-10; Title XI,
Section 1122(a); 12 U.S.C. 3351(a).
SECTION .0300 - APPRAISER EXAMINATIONS
21 NCAC 57A .0301 TIME AND PLACE
(a) Applicants who have met the education and experience
requirements shall be issued an examination approval form by
the Appraisal Board in order to take the examination. The
examination approval form is valid for three attempts at the
examination or for one year from date of issuance, whichever
comes first.
(b) Examinations for real estate trainee registrations, appraiser
licenses and certificates shall be scheduled at such times and
places as determined by the Executive Director and the Board-approved
private testing service. Applicants shall be scheduled
for examination based on their successful completion of
appraiser qualification requirements stated in G.S. 93E-1-6 and
filing an application with the Board. Violation of examination
procedures and instructions shall be grounds for denial,
suspension or revocation of a license or certificate.
(c) Examination results are valid for 24 months from the date
the examination is successfully completed.
Authority G.S. 93E-1-6(c); 93E-1-10.
21 NCAC 57A .0303 RE-EXAMINATION
(a) Applicants for a trainee registration, or appraiser license or
certificate who fail to pass or appear for any examination for
which the applicant has been scheduled by the Board-approved
private testing service, may schedule a subsequent examination
and shall pay the prescribed examination testing fees to the
Board-approved private testing service
(b) Applicants may take the examination no more than three
times per application. If an applicant fails the examination, the
applicant must wait a minimum of 30 days before retaking the
examination. If the applicant does not pass the examination by
the third attempt at the examination or within one year of the
date of issuance of the examination approval form, the
application is cancelled. If the application is cancelled, the
applicant must wait six months before filing a new application
reapply for registration, licensure or certification and must meet
all the qualification requirements for original approval.
Authority G.S. 93E-1-6; 93E-1-10.
SECTION .0400 – GENERAL APPRAISAL PRACTICE
21 NCAC 57A .0401 USE OF TITLES
(a) A trainee shall utilize either the term "registered trainee" or
the term "trainee real estate appraiser" when performing an
appraisal of real estate or any interest therein, and when referring
to himself as a trainee.
(b) A state-licensed licensed residential real estate appraiser
shall utilize the term "state-licensed residential real estate
appraiser" "licensed residential real estate appraiser" and a state-certified
certified residential real estate appraiser shall utilize the
term "state-certified residential real estate appraiser" "certified
residential real estate appraiser" when performing an appraisal of
real estate or any interest therein, and when referring to himself
or herself as an appraiser. A state-certified certified general real
estate appraiser shall utilize either the term "state-certified
general real estate appraiser" "certified general real estate
appraiser" or "state-certified residential/general real estate
appraiser" "certified residential/general real estate appraiser"
when performing appraisals of all types of real estate or any
interest therein, and when referring to himself or herself as an
appraiser.
(c) Trainee registration, licensure or certification as a real estate
appraiser is granted only to persons and does not extend to a
business entity operated by a trainee, state-licensed licensed or
state-certified certified real estate appraiser.
Authority G.S. 93E-1-10.
21 NCAC 57A .0403 ADVERTISING
(a) When advertising or otherwise holding himself out as a
trainee or real estate appraiser, a trainee shall identify himself or
herself either as a "registered trainee" or as a "trainee real estate
appraiser", a state-licensed licensed residential real estate
appraiser shall identify himself or herself as a "state-licensed
residential real estate appraiser", "licensed residential real estate
appraiser", a state-certified certified residential real estate
appraiser shall identify himself or herself as a "state-certified
residential real estate appraiser" "certified residential real estate
appraiser", and a state-certified certified general real estate
appraiser shall identify himself or herself as either a "state-certified
general real estate appraiser" "certified general real
estate appraiser" or a "state-certified residential/general real
estate appraiser". "certified residential/general real estate
appraiser".
(b) A registered trainee, state-licensed licensed or state-certified
certified real estate appraiser doing business as a partnership,
association, corporation or other business entity shall not
represent in any manner to the public that the partnership,
association, corporation or other business entity is registered,
licensed or certified by the State of North Carolina to engage in
the business of real estate appraising.
(c) In the event that any trainee, licensee or certificate holder
shall advertise in any manner using a firm name, corporate
name, or an assumed name which does not set forth the surname
of the trainee, licensee or certificate holder, he shall first notify
the Board in writing of such name and furnish the Board with a
copy of each registration of assumed name certificate filed with
the office of the county register of deeds in compliance with
Section 66-68, North Carolina General Statutes.
Authority G.S. 93E-1-10.
21 NCAC 57A .0406 BUSINESS PRACTICES
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Each trainee or appraiser who has an ownership interest in an
appraisal firm must assure that:
(1) proper notification is given to the Board of any
change of business address or trade name of
the firm and the registration of any assumed
business name adopted by the firm for its use;
and
(2) the proper conduct of advertising of appraisal
services by or in the name of the firm. firm is
conducted in a proper manner.
Authority G.S. 93E-1-3(b); 93E-1-10.
21 NCAC 57A .0407 SUPERVISION OF TRAINEES
(a) A state-licensed licensed or state-certified certified real
estate appraiser may engage a registered trainee to assist in the
performance of real estate appraisals, provided that the state-licensed
licensed or state-certified certified real estate appraiser:
(1) has been licensed or certified for at least two
years;
(2) has no more than two trainees one trainee
working under his or her supervision at any
one time, if the supervisor is a licensed real
estate appraiser, or two trainees if the
supervisor is a certified real estate appraiser,
either as employees or as a subcontractors.
Prior to the date any trainee begins performing
appraisals under his or her supervision, the
supervisor must inform the Board of the name
of the trainee;
(3) actively and personally supervises the trainee.
The supervisor must accompany the trainee on
the inspections of the subject property on the
first 50 appraisal assignments performed after
the effective date of this Rule for which the
trainee will perform more than 75% of the
work. After that point, the trainee may perform
the inspections without the presence of the
supervisor provided that the trainee is
competent to perform those inspections, and
provided that the subject property is less than
50 miles from the supervisor's primary
business address. location. The supervisor
must accompany the trainee on all inspections
of subject properties that are located more than
50 miles from the supervisor's primary
business location; If the subject property is
more than 50 miles from the supervisor's
business address, the supervisor must
accompany the trainee on all inspections;
(4) reviews all appraisal reports and supporting
data used in connection with appraisals in
which the services of a trainee is utilized;
(5) complies with all provisions of Rule .0405 of
this Section regarding appraisal reports;
(6) prepares and furnishes to each trainee, whose
services were utilized in connection with the
appraisal, a report describing the nature and
extent of assistance rendered by the trainee in
connection with the appraisal, and places a
copy of such report in the supporting file for
the appraisal. In addition, the supervisor must
make available to the trainee a copy of every
appraisal report to the trainee where the trainee
performs more than 75% of the work on the
appraisal; and
(7) has not received any disciplinary action
regarding his or her appraisal license or
certificate from the State of North Carolina or
any other state within the previous two years.
For the purposes of this Section, disciplinary
action means only an active suspension or a
revocation.
(b) The trainee must maintain a log on a form prescribed by the
Board that includes, but is not limited to, each appraisal
performed by the trainee, the name of the supervisor for that
appraisal, the supervisor's license or certificate number and
number, whether the supervisor accompanied the trainee on the
inspection of the subject property. property and the date the
supervisor sent in the Supervisor Declaration Form to the
Appraisal Board.
(c) The Appraisal Board may require a A license or certificate
holder who wishes to supervise a trainee to must attend an
education program regarding the role of a supervisor before such
supervision may begin.
(d) Trainees must assure that the supervisor has properly
completed and sent the Supervisor Declaration Form to the
Appraisal Board on or before the trainee begins assisting the
supervising appraiser. Trainees will not receive appraisal
experience credit for appraisals performed in violation of this
section.
(e) Supervising appraisers may not be employed by a trainee or
by a company, firm or partnership in which the trainee has a
controlling interest.
Authority G.S. 93E-1-3(b); 93E-1-10.
SECTION .0500 - STANDARDS OF
APPRAISAL PRACTICE
21 NCAC 57A .0501 APPRAISAL STANDARDS
(a) Every registered trainee, state-licensed licensed and state-certified
certified real estate appraiser shall, in performing the
acts and services of a state-registered registered trainee, state-licensed
licensed or state-certified certified real estate appraiser,
comply with those appraisal practice standards known as the
"Uniform Standards of Professional Appraisal Practice"
promulgated by the Appraisal Standards Board of the Appraisal
Foundation, which standards, including subsequent amendments
and editions of those standards which may from time to time be
approved, are hereby incorporated by reference. For the purpose
of this Rule, the "Uniform Standards of Professional Appraisal
Practice" are the Definitions, Preamble, Ethics Rule,
Competency Rule, Departure Rule, Jurisdictional Exception
Rule, Supplemental Standards Rule, Statements on Appraisal
Standards, and Standards 1, 2, and 3.
(b) A copy of the portions of the "Uniform Standards of
Professional Appraisal Practice" specified in Paragraph (a) of
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this Rule is included in the Board's Information and Application
booklet available free of charge.
Authority G.S. 93E-1-10.
SUBCHAPTER 57B – REAL ESTATE
APPRAISAL EDUCATION
SECTION .0100 – COURSES REQUIRED FOR
REGISTRATION, LICENSURE AND CERTIFICATION
21 NCAC 57B .0101 REGISTERED TRAINEE, AND
LICENSED RESIDENTIAL REAL ESTATE APPRAISER
COURSE REQUIREMENTS
(a) Each applicant for registration as a trainee or licensure as a
state-licensed licensed residential real estate appraiser shall
complete a minimum of 90 hours of prelicensing education,
consisting of the following;
(1) A minimum of 30 hours in Introduction to
Real Estate Appraisal (R-1);
(2) A minimum of 30 hours in Valuation
Principles and Procedures (R-2);
(3) A minimum of 15 hours in Applied
Residential Property Valuation (R-3); and
(4) A minimum of 15 hours in The Uniform
Standards of Professional Appraisal Practice
(USPAP)
(b) Credit for these courses must be earned from a Board-approved
course sponsor or school and all course content shall
be approved by the Appraisal Board in accordance with these
rules. These courses must be completed within the five-year
period immediately preceding the date when application for
registration, licensure or certification is made to the Board.
(c) Introduction to Real Estate Appraisal (R-1) shall be a
prerequisite to taking Valuation Principles and Procedures (R-2),
and Valuation Principles and Procedures (R-2) shall be a
prerequisite to taking Applied Residential Property Valuation
(R-3). The 15 hour USPAP course may be taken any time after
the successful completion of R-2.
Authority G.S. 93E-1-6(a); 93E-1-8(a); 93E-1-10.
SECTION .0200 - COURSE SPONSOR STANDARDS
FORPRELICENSING AND PRECERTIFICATION
EDUCATION
21 NCAC 57B .0209 CERTIFICATE OF COURSE
COMPLETION
Approved schools or course sponsors must provide each passing
student with a course completion certificate. Certificates of
course completion must be on a document bearing the letterhead
or insignia of the school or course sponsor and must have the
signature or signature stamp, which must be in an ink color other
than black, or the school or course sponsor director. A student
who has taken a prelicensing or precertification course, other
than the 15 hour National USPAP course, for continuing
education credit and who does not pass the examination shall not
be given a course completion certificate, but shall be given a
certificate of attendance for the course, provided that the student
complies with the provisions of 21 NCAC 57B .0303. Either
certificate shall be valid to obtain continuing education credit, in
accordance with 21 NCAC 57B .0604.
Authority G.S. 93E-1-8(a); 93E-1-10.
21 NCAC 57B .0210 COURSE RECORDS
Schools and course sponsors must:
(1) retain on file for five years copies of all grade
and attendance records for each approved
course and must make such records available
to the Board upon request;
(2) retain on file for two years a master copy of
each final course examination, and such file
copy shall indicate the answer key, course
title, course dates and name of instructor.
Examination file copies shall be made
available to the Board upon request;
(3) within 15 days of course completion, but not
later than June 30 of each year, submit to the
Board a roster of all students who
satisfactorily completed the course; and
(4) participate in the Board's course and instructor
evaluation program. Rosters and evaluations
must be sent together by mail, not by fax or
other electronic means.
Authority G.S. 93E-1-8(a); 93E-1-10.
SECTION .0300 - COURSE STANDARDS FOR
PRELICENSINGAND PRECERTIFICATION
EDUCATION
21 NCAC 57B .0302 COURSE CONTENT
(a) All courses shall consist of instruction in the subject areas
and at the competency and instructional levels prescribed in the
course syllabi. Copies of the syllabi are available free of charge
upon request to the Board.
(b) Courses may also include coverage of additional related
subject areas not prescribed by the Board; however, any such
course must provide additional class time above the minimum
requirement of 30 classroom hours for R-1 and R-2, R-1, R-2,
G-1, G-2 and G-3 and the minimum requirement of 15 hours for
R-3 and USPAP for the coverage of such additional subject
areas.
Authority G.S. 93E-1-6; 93E-1-8(a); 93E-1-10.
21 NCAC 57B .0303 COURSE COMPLETION
STANDARDS
(a) Academic standards for course completion must reasonably
assure that students receiving a passing grade possess adequate
knowledge and understanding of the subject areas prescribed for
the course. A student's grade must be based solely on his or her
performance on examinations and on graded homework and
class work assignments.
(b) Course completion requirements must include a
comprehensive final course examination which covers all
prescribed subject areas and which accounts for at least 50
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1492
percent of a student's grade for the course. Take-home or open-book
final course examinations are prohibited. Schools and
course sponsors may, within 90 days of the course ending date,
allow a student one opportunity to make up any missed course
examination or to retake any failed course examination without
repeating the course however any make up examination must be
comparable to the initial examination with regard to the number
of questions and overall difficulty, and at least 75 percent of the
questions in the make up examination must be different from
those used in the initial examination.
(c) The minimum attendance required for satisfactory course
completion is 90 percent of all scheduled classroom hours for
the course.
(d) The instructor may, in his or her discretion, offer additional
hours of instruction so that students can make up lost hours of
instruction.
(e) Students who are taking a prelicensing or precertification
course, other than the 15 hour National USPAP course, for
continuing education credit are required to sit for the final course
examination. Students who pass the examination and who
comply with the provisions of 21 NCAC 57B .0303 shall be
given a course completion certificate. Students who do not pass
the examination but who otherwise comply with the provisions
of 21 NCAC 57B .0303 shall be given a certificate of
attendance. Students who are taking the course as a result of a
conditional dismissal, consent order or order of the Board after a
hearing must take and pass the examination.
Authority G.S. 93E-1-8(a); 93E-1-10.
21 NCAC 57B .0304 COURSE SCHEDULING
(a) All courses must have fixed beginning and ending dates, and
schools and course sponsors may not utilize a scheduling system
that allows students to enroll late for a course and then complete
their course work in a subsequently scheduled course. Late
enrollment is permitted only if the enrolling student can satisfy
the minimum attendance requirement set forth in Paragraphs (c)
and (d) of Rule .0303 of this Section.
(b) Courses may be scheduled in a manner that provides for
class meetings of up to eight classroom hours in any given day;
however credit for courses will be limited to 30 classroom hours
per seven-day period.
(c) A classroom hour consists of 50 minutes of classroom
instruction and ten minutes of break time. For any class meeting
that exceeds 50 minutes in duration, breaks at the rate of 10
minutes per hour must be scheduled and taken at reasonable
times.
(d) Instruction must be given for a minimum of 30 classroom
hours for R-1 and R-2, R-1, R-2, G-1, G-2 and G-3, and a
minimum of 15 hours for R-3 and USPAP. Instructors may not
accumulate unused break time to end the class early. The time
for the final examination shall not be included in the credit
hours.
Authority G.S. 93E-1-8(a); 93E-1-10.
21 NCAC 57B .0306 INSTRUCTOR REQUIREMENTS
(a) Except as indicated in Paragraph (b) of this Rule, all
appraisal prelicensing and precertification courses or courses
deemed equivalent by the Board shall be taught by instructors
who possess the fitness for licensure required of applicants for
trainee registration or real estate appraiser licensure or
certification and either the minimum appraisal education and
experience qualifications listed in this Rule or other
qualifications that are found by the Board to be equivalent to
those listed. These qualification requirements shall be met on a
continuing basis. The minimum qualifications are as follows:
(1) Residential appraiser courses: 120 classroom
hours of real estate appraisal education
equivalent to the residential appraiser
education courses prescribed in Rules .0101
and .0102 of this Subchapter and either two
years' full-time experience as a residential real
estate appraiser within the previous five years
or three years full time experience as a general
real estate appraiser within the previous five
years, with at least one-half of such experience
being in residential property appraising.
Instructors must also be either state-certified
certified residential or state-certified certified
general real estate appraisers.
(2) General appraiser courses: 180 classroom
hours of real estate appraisal education
equivalent to the general appraiser education
courses prescribed in Rules .0101, .0102 and
.0103 of this Subchapter and three years' full-time
experience as a general real estate
appraiser within the previous five years, with
at least one-third of such experience being in
income property appraising. Instructors must
also be state-certified certified general real
estate appraisers.
(3) USPAP: certification by the Appraiser
Qualifications Board of the Appraisal
Foundation as an instructor for the National
USPAP Course.
(b) Guest lecturers who do not possess the qualifications stated
in Paragraph (a) of this Rule may be utilized to teach collectively
up to one-fourth of any course, provided that each guest lecturer
possesses education and experience directly related to the
particular subject area he is teaching.
(c) Instructors shall conduct themselves in a professional
manner when performing their instructional duties and shall
conduct their classes in a manner that demonstrates knowledge
of the subject matter being taught and mastery of the following
basic teaching skills:
(1) The ability to communicate effectively
through speech, including the ability to speak
clearly at an appropriate rate of speed and with
appropriate grammar and vocabulary.
(2) The ability to present instruction in a thorough,
accurate, logical, orderly, and understand able
manner, to utilize illustrative examples as
appropriate and to respond appropriately to
questions from students;
(3) The ability to effectively utilize varied
instructive techniques other than straight
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lecture, such as class discussion or other
techniques.
(4) The ability to effectively utilize instructional
aids to enhance learning;
(5) The ability to maintain an effective learning
environment and control of a class; and
(6) The ability to interact with adult students in a
manner that encourages students to learn, that
demonstrates an understanding of students
backgrounds, that avoids offending the
sensibilities of students, and that avoids
personal criticism of any other person, agency
or organization.
(d) Upon request of the Board, an instructor or proposed
instructor must submit to the Board a videotape in a manner and
format which depicts the instructor teaching portions of a
prelicensing course specified by the Board and which
demonstrates that the instructor possesses the basic teaching
skills described in Rule .0306(c) of this Section.
(e) The inquiry into fitness shall include consideration of
whether the instructor has ever had any disciplinary action taken
on his or her appraisal license or certificate or any other
professional license or certificate in North Carolina or any other
state, or whether the instructor has ever been convicted of or
pleaded guilty to any criminal act. This inquiry may include
consideration of whether disciplinary action or criminal charges
are pending.
(f) Instructors shall not have received any disciplinary action
regarding his or her appraisal license or certificate from the State
of North Carolina or any other state within the previous two
years. For the purposes of this Section, disciplinary action
means a reprimand, suspension (whether active or inactive) or a
revocation.
(g) Proposed prelicensing or precertification instructors who do
not meet the minimum appraisal education and experience
qualifications listed in Paragraph (a) of this Rule, and who seek
to have their qualifications determined by the Board to be
equivalent to the qualifications listed in Paragraph (a) of this
Rule, must supply the Board with copies of sample appraisal
reports.
(h) Persons desiring to become instructors for prelicensing and
precertification courses must file an application for approval
with the Board. Board approval of instructors expires on the next
June 30 following the date of issuance. Instructors who wish to
renew their approval must file an application for renewal of
approval annually on or before June 1. There is no fee for
application for or renewal of instructor approval. Once an
instructor has been approved to teach a specific prelicensing or
precertification course, that person may teach the course at any
school or for any course sponsor approved by the Appraisal
Board to offer prelicensing and precertification courses.
Authority G.S. 93E-1-8(a); 93E-1-10.
SECTION .0600 - CONTINUING EDUCATION COURSES
21 NCAC 57B .0603 CRITERIA FOR COURSE
APPROVAL
The following requirements must be satisfied in order for course
sponsors to obtain approval of a course for appraiser continuing
education credit:
(1) The subject matter of the course must
comply with the requirements of Rule
.0204 of Subchapter 57A and the
information to be provided in the
course must be both accurate and
current.
(2) The course must involve a minimum
of three and one-half classroom hours
of instruction on acceptable subject
matter. A classroom hour consists of
50 minutes of classroom instruction
and 10 minutes of break time.
Instruction must be given for the full
number of hours for which credit is
given. Instructors may not
accumulate unused break time to end
the class early.
(3) The course instructor(s) must:
(a) possess the fitness for
licensure required of
applicants for trainee
registration, real estate
appraiser licensure or
certification and;
(b) either:
(i) two years' full-time
experience that is
directly related to
the subject matter
to be taught,
(ii) a baccalaureate or
higher degree in a
field that is directly
related to the
subject matter to be
taught,
(iii) two years' full-time
experience teaching
the subject matter
to be taught, or
(iv) an equivalent
combination of
such education and
experience.
(4) If two or more instructors shall be utilized to
teach a course during the approval period and
the course shall be taught in states other than
North Carolina, it is sufficient for the course
sponsor to show that it has minimum instructor
requirements comparable to these
requirements. The inquiry into fitness shall
include consideration of whether the instructor
has had any disciplinary action taken on his or
her appraisal license or any other professional
license in North Carolina or any other state, or
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whether the instructor has been convicted of or
pleaded guilty to any criminal act.
(5) The course must be one involving a qualified
instructor who, except as noted in Item (6) of
this Rule, shall be physically present in the
classroom at all times and who shall
personally provide the instruction for the
course. The course instructor may utilize
videotape instruction, remote television
instruction or similar types of instruction by
other persons to enhance or supplement his
personal instruction; however, such other
persons shall not be considered to be the
official course instructor and the official
course instructor must be physically present
when such indirect instruction by other
persons is being utilized. No portion of the
course may consist of correspondence
instruction. The instructor must comply with
Rule .0306(c) of this Subchapter. Instructors
for the National USPAP courses must be
certified by the Appraiser Qualifications Board
of the Appraisal Foundation.
(6) For courses attended on or after the effective
date of this rule, a A trainee or appraiser may
receive up to 14seven hours of credit per
renewal period every two years in the period
ending on June 30 of each odd numbered year
for participation in a course on a computer
disk or on-line via the Internet. A sponsor
seeking approval of a computer-based
education course must submit a complete copy
of the course on the medium that is to be
utilized and must make available at the
sponsor's expense, all hardware and software
necessary for the Board to review the
submitted course. In the case of an internet-based
course, the Board must be provided
access to the course via the internet at a date
and time satisfactory to the Board and shall not
be charged any fee for such access. To be
approved for credit, a computer-based
continuing education course must meet all of
the conditions imposed by the Rules in this
Subchapter in advance, except where
otherwise noted. The course must be
interactive, permitting the participant to
communicate, via telephone, electronic mail,
or a website bulletin board, with the presenter
and other participants. The sponsor of an on-line
course must have a reliable method for
recording and verifying attendance. The
sponsor of a course on a computer disk must
demonstrate that there is a reliable method for
the user or the sponsor to record and verify
participation in the course. A participant may
periodically log on and off of a computer-based
continuing education course provided
the total time spent participating in the course
is equal to or exceeds the credit hours assigned
to the program. A course completion
certificate must be forwarded to the student as
stated in Rule .0607 of this Section, and a
course roster must be sent to the Appraisal
Board in accordance with Rule .0608 of this
Section.
(7) The course must be an educational program
intended to improve the knowledge, skill and
competence of trainees, state-licensed licensed
and state-certified certified real estate
appraisers. Activities not eligible for approval
as a continuing education course include in-house
training programs of a firm,
organization or agency, trade conferences or
similar activities.
(8) The course sponsor must certify that the
course will be conducted in accordance with
the operational requirements stated in Rule
.0606 of this Section and that the course
sponsor will comply with all other.
Authority G.S. 93E-1-8(c); 93E-1-10.
21 NCAC 57B .0604 PRELICENSING AND
PRECERTIFICATION COURSES
(a) Appraisal prelicensing or precertification courses conducted
by North Carolina approved schools or by appraisal trade
organizations which are approved as equivalent to the North
Carolina prelicensing and precertification courses may be
separately approved as appraisal continuing education courses.
Trainees and state-licensed and state-certified Trainees, license
and certified appraisers may obtain continuing education credit
for these courses only to the extent permitted by Rule .0204 of
Subchapter 57A. Appraisal trade organizations must at all times
assure compliance with Rules .0606, .0607, and .0608 of this
Section in order to retain such approval for these courses.
(b) It is presumed that any person taking any of the prelicensing
or precertification courses is doing so for registration, licensure
or certification purposes. If the person wishes to obtain
continuing education credit for the course, he or she must
request such credit and must send the original course completion
certificate or course attendance certificate with the request.
Authority G.S. 93E-1-8(c); 93E-1-10.
21 NCAC 57B .0606 COURSE OPERATIONAL
REQUIREMENTS
Course sponsors must at all times assure compliance with the
criteria for course approval stated in Rule .0603 of this Section
and must also comply with the following requirements relating
to scheduling, advertising and conducting approved appraisal
continuing education courses:
(1) Courses must be scheduled and conducted in a
manner that limits class sessions to a
maximum of eight classroom hours in any
given day and that includes appropriate breaks
for each class session. A classroom hour
consists of 50 minutes of classroom instruction
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1495
and ten minutes of break time. For any class
meeting that exceeds 50 minutes in duration,
breaks at the rate of ten minutes per hour must
be scheduled and taken at reasonable times.
(2) Course sponsors must not utilize advertising of
any type that is false or misleading in any
respect. If the number of continuing education
credit hours awarded by the Board for a course
is less than the number of scheduled classroom
hours for the course, any course advertisement
or promotional materials which indicate that
the course is approved for appraiser continuing
education credit in North Carolina must
specify the number of continuing education
credit hours awarded by the Board for the
course.
(3) Course sponsors must, upon request, provide
any prospective student a description of the
course content sufficient to give the
prospective student a general understanding of
the instruction to be provided in the course.
(4) Courses must be conducted in a facility that
provides an appropriate learning environment.
At a minimum, the classroom must be of
sufficient size to accommodate comfortably all
enrolled students, must contain a student desk
or sufficient worktable space for each student,
must have adequate light, heat, cooling and
ventilation, and must be free of distractions
that would disrupt class sessions. Sponsors are
required to comply with all applicable local,
state and federal laws and regulations
regarding safety, health and sanitation.
Sponsors shall furnish the Board with
inspection reports from appropriate local
building, health and fire inspectors upon the
request of the Board.
(5) The course sponsor must require students to
attend at least 90 percent of the scheduled
classroom hours in order to satisfactorily
complete the course, even if the number of
continuing education credit hours awarded by
the Board for the course is less than the
number of scheduled classroom hours.
Attendance must be monitored during all class
sessions to assure compliance with the
attendance requirement. Instruction must be
given for the number of hours for which credit
is given. Instructors may not accumulate
unused break time to end the class early.
(6) Instructors must require reasonable student
attentiveness during class sessions. Students
must not be permitted to engage in activities
that are not related to the instruction being
provided.
(7) Course sponsors for which an application fee
is required by Rules .0602(b) and .0611(b) of
this Section must fairly administer course
cancellation and fee refund policies. In the
event a scheduled course is canceled,
reasonable efforts must be made to notify
preregistered students of the cancellation and
all prepaid fees received from such
preregistered students must be refunded within
30 days of the date of cancellation or, with the
student's permission, applied toward the fees
for another course.
(8) Upon request of the Board, the course sponsor
must submit to the Board a videotape in a
manner and format which depicts the
instructor teaching portions of any continuing
education course specified by the Board and
which demonstrates that the instructor
possesses the basic teaching skills described in
Rule .0306(c) of this Section.
(9) Upon the request of the Board, course Course
sponsors shall provide the Board with the
dates and locations of all classes the sponsor is
or will be offering in the State of North
Carolina. at least 30 calendar days before such
class is offered, unless circumstances beyond
the control of the course sponsor require that
the course be rescheduled. If the dates or
location of the classes change after such
information is provided to the Board, the
course sponsor must notify the Board of such
changes.
(10) Course sponsors must participate in the
Board's course and instructor evaluation
program. Course sponsors must require that
students complete a course evaluation form
prior to or upon completion of the course.
Course sponsors must also send the completed
course evaluation forms to the Board together
with the roster required pursuant to 21 NCAC
57B .0608.
(11) Persons desiring to become instructors for
continuing education courses must file an
application for approval with the Board. Board
approval of instructors expires on the next
June 30 following the date of issuance.
Instructors who wish to renew their approval
must file an application for renewal of
approval annually on or before June 1. There
is no fee for application for or renewal of
instructor approval. Once an instructor has
been approved to teach a specific course, that
person may teach the course for any course
sponsor approved by the Appraisal Board to
offer continuing education courses.
Authority G.S. 93E-1-8(c); 93E-1-10.
21 NCAC 57B .0608 SPONSOR REPORTING OF
CONTINUING EDUCATION CREDIT
Course sponsors must, within 15 days of course completion but
no later than June 30 of each year, submit to the Board a roster
of all North Carolina registered trainees, state-licensed licensed
PROPOSED RULES
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1496
and state-certified certified appraisers who satisfactorily
completed the course. The roster must be sent by regular mail
together with the course evaluation forms required by 21 NCAC
57B .0606(10). Rosters sent by fax or other electronic means
will not be accepted.
Authority G.S. 93E-1-8(c); 93E-1-1.
RULES REVIEW COMMISSION
19:18 NORTH CAROLINA REGISTER March 15, 2005
1497
This Section contains information for the meeting of the Rules Review Commission on Thursday March 17, 2005, 10:00 a.m.
at 1307 Glenwood Aven