2018
North Carolina Rules with Economic Impact
• Schedule of Anticipated Rule Actions
• Rules that Affected Local Governments
Prepared by the North Carolina Office of State Budget and Management,
Office of the Governor
March 2018[THIS PAGE INTENTIONALLY LEFT BLANK]
1
Background
On May 17, 1994, Governor James B. Hunt Jr. issued the Executive Order No. 49 entitled “Fiscal Notes on Administrative Rules Affecting Local Governments.” The Executive Order set forth policies and procedures for state agencies to follow when proposing permanent rules with an impact on local governments. Through Session Law 1995-415, the General Assembly incorporated these policies, as well as other changes, in G.S. 150B-21.28 of the Administrative Procedure Act (APA). The revised APA increases state agencies’ awareness of the effect proposed rules would have on local governments and enables local governments to be more involved in estimating the fiscal impact of permanent rules on local budgets.
According to requirements in the APA, the North Carolina Office of State Budget and Management (OSBM) prepares annually a report containing a schedule of anticipated rule actions in the upcoming fiscal year, as well as a summary of the projected economic impact on local governments of rules adopted in the preceding fiscal year. OSBM provides a copy of this annual report to the Governor, the General Assembly, the North Carolina Association of County Commissioners, and the North Carolina League of Municipalities, as required by the APA.
Outline
I. Summary
The Summary section contains statistics on anticipated rule actions in the following fiscal year that might have an economic impact, and rules adopted in the previous year with projected impact on local governments.
II. Schedule of Anticipated Rule Actions, July 1, 2018 – June 30, 2019
This section contains information on rules state agencies expect to adopt in SFY 2018-19 that would have an impact on: i) state expenditure or distribution of funds; ii) local government revenues or expenditures; or iii) would create a substantial economic impact. Substantial impact is statutorily defined as an aggregate financial impact to all parties involved of $1,000,000 or greater over a 12-months period (G.S. 150B-21.4(b1)). The information in this section is organized by agency and agency division, and it includes the rule title, the North Carolina Administrative Code (NCAC) citation, staff contact information, proposed action, anticipated impact, and a brief description of the rule change.
III. Rules that Affected Local Governments, Adopted July 1, 2016 – June 30, 2017
The last section provides information on rules North Carolina agencies adopted in SFY 2016-17 that have a projected impact on local governments. The information is organized by agency and by adoption date, and it includes the rule title, NCAC citation, staff contact information, and expected net impact on local government revenues and expenditures over a five-year period.
2
I. Summary
In SFY 2018-19, state agencies anticipate acting on 75 different rule packages, based on reports submitted by more than 80 percent of agencies. This report uses the terms “rule change” or “rule” to refer to a package of permanent individual rules an agency proposes to adopt together that constitute a new policy. Therefore, the number of individual rules on which the agencies plan to act on is higher than the number noted in this report. See Table 1 below for a breakdown by agency.
The 75 rule package actions agencies anticipate making in SFY 2018-19 is a larger amount than the 70 actions agencies anticipated engaging in during the current fiscal year (SFY 2017-18), based on information presented in the 2017 NC Rules with Economic Impact Report. Approximately 88% of the 75 anticipated rule actions with economic impact for the following year include an amendment to existing regulations, nearly half of which are rule packages the agencies are required to readopt by G.S. 150B-21.3A. New rule adoptions make up 21% of the anticipated actions, and 4 percent include rule repeals (see Table 2).
Table 1. Number of Anticipated Rules with Economic Impact in SFY 2018-19 Agency Number of Rule Packages Percentage of Total (rounded) Department of Commerce 1 1%
Department of Environmental Quality
35
47% Department of Health and Human Resources 20 27%
Department of Insurance
4
5% Department of Justice 1 1%
Department of Labor
1
1% Department of Natural and Cultural Resources 1 1%
Department of State Treasurer
1
1% Wildlife Resources Commission 11 15%
Total Anticipated Rules
75
100%
Table 2. Number of Anticipated Rules by Type of Action Type of Impact Number of Rule Packages Percentage of Total (rounded) Amend 27 36%
Readopt
32
43% Adopt 8 11%
Adopt and Amend
5
7% Adopt, Amend, and Repeal 2 3%
Repeal and Amend
0
0% Repeal and Adopt 1 1%
Repeal
0
0% Total Anticipated Rules 75 100%
3
The Department of Environmental Quality (DEQ), Department of Health and Human Services (DHHS), and the Wildlife Resources Commission (WRC) anticipate carrying out the majority of the rulemaking in SFY 2018-19, with 35, 20, and 11 anticipated rule packages, respectively. Note that 24 of the DEQ actions and eight of the DHHS actions are readoptions of existing regulations, which are required for the agency to comply with the review of existing regulation provisions in G.S. 150B-21.3A.
As agencies continue to engage in the existing rule review process, there might be additional rulemaking actions than those contained in this report. Based on the Readoption Schedule published by the Office of Administrative Hearings (as of February 12, 2018), agencies are planning to readopt another 45 rule chapters, totaling 1,789 individual rules, in the following fiscal year. At this point, it is unclear how many of those rules will be repealed or readopted, and of those readopted, how many will result in an economic impact. Since agencies may still be in the planning stages for their readoption packages, they may not be able to state whether the rules will be readopted with substantive changes. Therefore, it is possible for the total number of rule actions with economic impact to be higher in the upcoming year than the 75 reported here.
Table 3 presents the number of anticipated rule actions in the next fiscal year that agencies estimate will have a state government, local government, or substantial economic impact, which is defined in G.S. 150B-21.4(b1) as an aggregate economic impact of $1 million or more over a 12-months period. In comparison to the estimates for the current fiscal year (see the 2017 NC Rules with Economic Impact Report), agencies report a decrease in rules that might have an impact on state or local governments, and a small decrease from eleven to seven rules with substantial economic impact. Of the rules that will be readopted per G.S. 150B-21.3A, twelve will have state government impact, five will have local government impact, and three will have substantial impact. For more details, see Table 6 in Section II of this report.
Table 3. Number of Anticipated Rules by Type of Impact* Type of Impact Number of Rule Packages Percentage of Total State Government 35 47%
Local Government
19
25% Substantial Economic Impact 7 9%
* Note the percentages above do not add up to 100% because rules may have more than one type of impact (see Table 6 below for details). Also, unknown impacts (“U” in Table 6) are not included in this table.
In SFY 2016-17, state agencies adopted 29 rule changes estimated to have an impact on local governments (either a cost or benefit), as shown in Table 4.
Table 4. Number of Rules Adopted in SFY 2016-2017 with
Local Government Impact, by Agency Agency Number of Rule Packages Percentage of Total Department of Environmental Quality 5 17%
Department of Health and Human Services
10
34% Department of Natural and Cultural Resources 1 3%
Department of Justice
1
3% Department of Revenue 1 3%
Department of Insurance
2
7% Secretary of State 1 3%
Wildlife Resources Commission
8
28% Total Adopted Rules 29 100% 4
Table 5 below presents the estimated quantified impact on local governments over a five-year period resulting from the rules adopted in SFY 2016-17. The net present value of these quantified impacts on local governments is approximately $11.4 million in welfare costs (computed using a 7% discount rate, as mandated in G.S. 150B-21.4(b1) for fiscal note analyses).
Note there may be additional costs and benefits to local governments during the next five years from these rule changes that are not quantified. See Table 7 in Section III of this report for more detailed information on these rule changes.
Table 5. Estimated Impact on Local Governments of Rules Adopted by
Agencies in SFY 2016-2017, (in thousands of $)* Agency SFY SFY 2 SFY 3 SFY 4 SFY 5 2016- 17 2017- 18 2018- 19 2019- 20 2020- 21
Department of Environmental Quality
$320
$306
$306
$306
$306 Department of Health and Human Services $986 $4,389 $2,944 $3,806 $821
Department of Natural and Cultural Resources
-$300
-$590
-$870
-$1,550
-$1,120 Department of Justice $2,400 $0 $0 $0 $0
Department of Revenue
Unquantified net costs Department of Insurance Unquantified - net impact unknown
Secretary of State
Unquantified net benefits Wildlife Resources Commission $11 $0 $0 $0 $0
Total Impact of Adopted Rules
$3,417
$4,105
$2,380
$2,562
$7
* Note that positive values constitute a net cost to local governments and negative values are net benefit. II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
5
Table 6. Schedule of Anticipated Rule Actions between July 1, 2018 and June 30, 2019 Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Department of Commerce
Credit Union
Charitable Donation Account
04 NCAC 06C .1206
Tony Knox
919-571-4888
Adopt
No
U
-
SE The Division will propose a change to the Investments section to allow for a Charitable Donation Account, similar to the opportunity given to federally charter credit unions. Charitable contributions and donations under this rule must be made to charities that are exempt from taxation under section 501 (c) (3) of the Internal Revenue Code. It will result in a substantial benefit to the community.
Department of Environmental Quality
Marine Fisheries
Secondary Nursery Areas
15A NCAC 03N .0105; 03I .0101; 03L .0101, .0103; 03M .0523, .0524; 03R .0105
Catherine Blum
252-808-8014
Adopt and Amend
No
S
L
SE On Feb. 16, 2017, the Marine Fisheries Commission granted in full the North Carolina Wildlife Federation's petition for rulemaking submitted Nov. 2, 2016 and amended Jan. 12, 2017. The proposed rules will designate all coastal fishing waters not otherwise designated as nursery areas as special secondary nursery areas, establish clear criteria for the opening of shrimp season, and define the type of gear and how and when gear may be used in special secondary nursery areas during shrimp season. The proposed rules will also set minimum size limits for spot and Atlantic croaker. Over the last five years, the average annual value of the shrimp fishery in North Carolina is estimated at over 17 million dollars. Over 99 percent of the shrimp fishery occurs in areas affected by the petitioned rules. There would be far-reaching impacts of the proposed rules, including substantial economic impacts and impacts to local governments. The Division of Marine Fisheries has initiated rulemaking by beginning to develop the fiscal analysis of the petitioned rules. As the division continues to work with OSBM on the fiscal analysis, it is unknown if the proposed rules will become effective in FY18-19.
Marine Fisheries
Estuarine Gill Net Permit
15A NCAC 03O .0501, .0503
Catherine Blum
252-808-8014
Amend
No
S
-
- Proposed amendments add the Estuarine Gill Net Permit requirements to the permit rules. The Estuarine Gill Net Permit has been issued by proclamation since 2014. The permit is for license holders using gill nets in Internal Coastal Fishing Waters and is necessary for North Carolina to maintain compliance with the Incidental Take Permits obtained through the National Oceanic and Atmospheric Administration Fisheries. Placing the permit requirements in rule has no impact on holders of the permit as the reporting requirements, application process, and zero-cost of the permit will not change. Seasonal openings as well as gear requirements will continue to be stipulated in proclamation due to the variable nature of the conditions of the fishery.
Coastal Management
Temporary erosion control structures (sandbags)
15A NCAC 07H .0308
Tancred Miller
252-808-2808
Amend
No
S
-
- The rule change primarily extends the time that sandbags can be used for emergency erosion control. DCM expects a minor net benefit to NCDOT due to the ability to keep sandbags in place longer. II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
6
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Coastal Management
Land Use Planning Guidelines
15A NCAC 07B .0802, .0803
Rachel Love-Adrick
252-808-2808
Amend
No
-
L
- The rule changes streamline the process by which the Coastal Resources Commission approves amendments and updates to local land use plans. Will result in some time and travel cost savings to local governments.
Coastal Management
Technical Standards for Beach Fill Projects
15A NCAC 07H .0312
Ken Richardson
252-808-2808
Amend
No
S
L
U This rule ensures that sand used for beach nourishment is of suitable quality. The changes provide flexibility in how compatibility analyses are performed, and exempts sand from the Cape Shoal systems from compatibility analysis. These changes will reduce project costs for local governments, and could also lower the state's cost share for beach nourishment. Substantial cost savings to state and local government are possible.
Coastal Management
General Permit for Marsh Sills
15A NCAC 07H .2700
Daniel Govoni
252-808-2808
Amend
No
U
-
- The changes will simplify permitting for marsh sills and could increase the number of general permits issued annually, but potentially lower the number of major permits issued for this activity. DCM's permit receipts could increase or decrease slightly. Any possible increase in general permits issued is dependent upon the US Army Corps of Engineers adopting a similar general permit that delegates their permit issuing authority to DCM.
Coastal Management
Use Standards for Ocean Hazard Areas: Exceptions
15A NCAC 07H .0309
Tancred Miller
252-808-2808
Amend
No
S
L
- Changes to this rule would allow NCDOT (and possibly local governments) to extend existing stormwater outfalls further across the beach and into the ocean. This change could result in reduced maintenance costs for NCDOT and local governments, but will not be substantial.
Energy, Mineral and Land Resources
Water Supply Watershed Rules
15A NCAC 2B .0620-.0624
Julie Ventaloro
919-807-6370
Readopt
No
-
-
U We are not anticipating rule changes that will have economic impact. Anticipated rule changes only seek to provide clarifying language for understanding of requirements, definitions of existing terms, and administrative corrections. It is anticipated that any changes will provide additional flexibility.
Energy, Mineral and Land Resources
Sedimentation Control
15A NCAC 04A .0101-.0105; 04B .0101-.0132; 04C .0101-.0111; 04D .0101-.0103; 04E .0101-.0504
John Holley
919-707-9215
Readopt
No
-
-
U We are not anticipating rule changes that will have economic impact. Anticipated rule changes only seek to provide clarifying language for understanding of requirements, definitions of existing terms, and administrative corrections (addresses, Agency Names, Reference Edits, etc.).
II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
7
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Energy, Mineral and Land Resources
Dam Safety
15A NCAC 02K .0212
Boyd DeVane
919-707-9212
Readopt
No
-
-
U We are not anticipating rule changes that will have economic impact. Anticipated rule changes only seek to provide clarifying language for understanding of requirements, definitions of existing terms, and administrative corrections (addresses, Agency Names, Reference Edits, etc.).
Energy, Mineral and Land Resources
Dam Safety CCR Rules
15A NCAC 02K Section.0600
Boyd DeVane
919-707-9212
Readopt
No
-
-
U We are not anticipating rule changes that will have economic impact. Anticipated rule changes only seek to provide clarifying language for Coal Combustion Residuals rules as related to dams in a Partial CCR program with the EPA and its CCR regulations.
Waste Management
Risk-Based Assessment and Corrective Action for Petroleum Underground Storage Tanks
15A NCAC 02L Section .0400
Jeremy Poplawski
919-707-8151
Readopt
Yes
U
U
U N/A
Waste Management
Risk-Based Assessment and Corrective Action for Petroleum Releases from Aboveground Storage Tanks and Sources
15A NCAC 02L Section .0500
Jeremy Poplawski
919-707-8151
Readopt
No
U
U
U N/A
Waste Management
Rules and Criteria for the Administration of the Dry-Cleaning Solvent Cleanup Fund
15A NCAC 02S
Peter Doorn
919-707-8369
Readopt
No
S
-
- In addition to readoption pursuant to 150B-21.3, the 15A NCAC 02S Rules are being amended to include technical corrections, clarifications, and updates to provide consistency among DEQ's risk-based programs. It is anticipated that the State will see a cost benefit from these rules as they amend the upper acceptable cancer risk range to mirror the risk-based remediation standards under G.S. 130A-310.68 (SL 2015-286). This amendment is projected to yield a cost savings for the DSCA program, but as described in the fiscal analysis, the savings will be limited because of the small universe of sites affected by the proposed change.
Waste Management
Permits for Solid Waste Management Facilities
15A NCAC 13B Section .0200
Jessica Montie
919-707-8247
Readopt
No
U
U
- Readoption with amendments.
Waste Management
Treatment and Processing Facilities
15A NCAC 13B Section .0300
Jessica Montie
919-707-8247
Readopt
No
U
U
- May either be readopted or repealed with requirements added to 15A NCAC 13B Section .0400. II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
8
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Waste Management
Transfer Facilities
15A NCAC 13B Section .0400
Jessica Montie
919-707-8247
Readopt
No
U
U
U Readoption with amendments, may propose to adopt new rules.
Waste Management
Disposal Sites
15A NCAC 13B .0503, .0544, .0545, .0547
Jessica Montie
919-707-8247
Readopt
No
U
U
U Readoption with amendments for 4 rules in Section .0500.
Waste Management
Monitoring Requirements
15A NCAC 13B Section .0600
Jessica Montie
919-707-8247
Readopt
No
U
U
U Readopting .0601 and .0602, propose to adopt new rule .0603.
Waste Management
Septage Management
15A NCAC 13B Section .0800
Jessica Montie
919-707-8247
Readopt
Yes
U
-
- Readoption with amendments, a subset of these rules (.0830, .0831, .0838, .0840, .0843) implement federal regulations (40 CFR 257, 40 CFR 503).
Waste Management
Scrap Tire Management
15A NCAC 13B Section .1100
Jessica Montie
919-707-8247
Readopt
No
U
U
- Readoption with amendments, propose to repeal or consolidate multiple rules.
Waste Management
Medical Waste Management
15A NCAC 13B Section .1200
Jessica Montie
919-707-8247
Readopt
No
U
U
- Readoption with amendments.
Waste Management
Requirements for Municipal Solid Waste Landfill Facilities
15A NCAC 13B .1630 through .1637
Jessica Montie
919-707-8247
Readopt
Yes
U
U
- Readoption with amendments of 8 rules in Section .1600, these rules implement federal regulation 40 CFR 258.
Waste Management
Financial Assurance for Solid Waste Management Facilities
15A NCAC 13B Section .1800, and rules .0546, .1111, and .1628
Jessica Montie
919-707-8247
Adopt, Amend, and Repeal
No
-
U
- Repealing financial assurance rules .0546, .1111, and .1628 to amend, combine, and adopt as one new Section .1800. II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
9
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Waste Management
Requirements for Disposal and Recycling of Coal Combustion Residuals (CCR) Facilities and Units
15A NCAC 13B Section .2000
Jessica Montie
919-707-8247
Adopt
Yes
S
U
- Adopt new rules to conform to federal requirements.
Waste Management
E-Manifest User Rule
15A NCAC 13A .0101 and .0109
Jenny Patterson
336-767-0031
Adopt and Amend
Yes
U
U
U Adopt new rules to conform to federal requirements.
Air Quality
Group 4 Rules Readoption- Particulates from Fugitive Dust Emission Sources, Control of Odors, and Open Burning
15A NCAC 02D .0540, Sections .1800 and .1900
Joelle Burleson
919-707-8720
Readopt
Yes
S
L
-
Rule development beginning initial stakeholder phase February 2018. Fugitive dust and odor rules are being readopted. Open burner rules are being readopted with revisions to reflect federal emissions guidelines for Commercial and Industrial Solid Waste Incineration Units (CISWI) and Other Solid Waste Incineration Units (OSWI), related to air curtain burners. Air curtain burners may need to obtain an air quality permit. Some units may be owned or operated at local government sites. Anticipated changes are not currently expected to result in substantial economic impacts as defined in 150B 21.4.
Air Quality
Municipal Solid Waste Landfills
15A NCAC 02D .1700
Joelle Burleson
919-707-8720
Readopt
Yes
S
L
SE
The landfill rules are being readopted and updated to reflect federal emissions guidelines for existing municipal solid waste landfills (40 CFR 60 Subpart Cf). The rule amendments are anticipated to be consistent with the updated federal requirements for municipal solid waste landfills some of which are owned/operated by county governments or municipalities. A very small number of municipal solid waste landfills are anticipated to have to install gas collection wells over a 10-year period; however, impact is anticipated to be substantial. Ongoing litigation regarding the emissions guidelines at the federal level may continue to impact whether this readoption occurs during FY 2018-19.
Air Quality
Group 5 Rules Readoption - Monitoring, Recordkeeping and Reporting Rules, Risk Management Program, Source Testing
15A NCAC 02D Sections .0600, .2100, and .2600
Joelle Burleson
919-707-8720
Readopt
Yes
U
U
U
Initial rule development anticipated to begin Spring 2018. Rule provisions are applicable to broad spectrum of sources some of which may be state or local government owned. Preliminarily, revisions are not anticipated to result in substantial economic impacts.
II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
10
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Water Resources
Rules Governing Public Water Systems
15A NCAC 18C
Jessica Godreau
919-707-9078
Readopt
Yes
U
U
U Changes will be adopted to comply with HB74 Periodic Review and Revision of Rules.
Water Resources
Rules Governing Water Treatment Facility Operators
15A NCAC 18D
Jay Frick
919-707-9102
Readopt
Yes
U
U
U Changes will be adopted to comply with HB74 Periodic Review and Revision of Rules.
Water Resources
Animal Waste Operator Rules
15A NCAC 08F
Steve Reid
919-707-9108
Readopt
Yes
U
U
U Changes will be adopted to comply with HB74 Periodic Review and Revision of Rules.
Water Resources
Wastewater Operator Rules
15A NCAC 08G
Steve Reid
919-707-9108
Readopt
Yes
U
U
U Changes will be adopted to comply with HB74 Periodic Review and Revision of Rules.
Water Resources
Emergency and Source Water Protection Planning
15A NCAC 18C .1305
Jay Frick
919-707-9102
Adopt
Yes
U
L
SE A new rule will be adopted to comply with S.L. 2014-41.
Water Resources
Triennial Review of Surface Water Quality Standards
15A NCAC 02B .0211 & .0220, and 15A NCAC 02B .0224 case by case scenarios
Jucilene Hoffmann
919-707-9016
Readopt
Yes
S
L
SE The rule change complies with the federal requirement to review of standards for surface water quality.
Department of Health and Human Resources
Health Benefits
Managed Care and Prepaid Plans
10A NCAC 22L .0101- .0104, .0201, .0203; 23C .0105
Tabitha Bryant
(919) 524-7014
Adopt, Amend, and Repeal
Yes
U
U
U The anticipated rule changes seek to clarify which rules promulgated for the existing Medicaid and NC Health Choice fee-for-service programs are applicable to Prepaid Health Plans, their enrollees, and their contracted providers under the future Medicaid managed care program. At this time, the Division is uncertain of the State, local, and/or substantial economic impact that the anticipated changes may have. II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
11
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Health Service Regulation
Jails
10A NCAC 14J .0101, .0102, .0103, .0201, .0203, .0204, .0301, .0302, .0303, .0402, .0403, .0404, .0405, .0501, .0601, .0702, .0705, .0904, .1001, .1002, .1201, .1202, .1203, .1207, .1210, .1212, .1213, .1214, .1215, .1218, .1219, .1225, .1226
Nadine Pfeiffer
919-855-3811
Repeal and Adopt
No
S
L
U These rules are being readopted following the periodic review and expiration of existing rules process. These rules have been identified as "Necessary with Substantive Public Interest." The last time any of the rules in the Subchapter have been revised was 1993. The standards and practices that were appropriate in the 1990's are not the best, most current practices and many of these rules need revision. The rule changes have been drafted with input per statute with a stakeholder group. The readoptions will focus in the areas of definitions, the operations manual, classification and housing of inmates, fire safety, security requirements, supervision, sanitation and personal hygiene, menus, health care, and standards for new jail design and construction. The operation of the jail in each county is determined by the Sheriff of the county. The Construction Section of the DHSR regulates and inspects the Jails. These changes will affect the cost in operations and construction standards of the jails, therefore state and local government will be impacted. It is also anticipated with the number of rule readoptions and due to construction standards being changed, these rules will have a possible substantial economic impact however the benefits are uncertain.
Health Service Regulation
Certificate of Need (CON)
10A NCAC 14C .2101 and .2103
Nadine Pfeiffer
919-855-3811
Amend
No
U
-
- These rules will be temporary rules effective February 1, 2018 and will be proposed for permanent rule amendment. Several subject matters are addressed in the State Medical Facilities Plan (SMFP). The operating room need methodology was changed in the 2018 SMFP. Revisions to existing Certificate of Need rules are required to compliment or be made consistent with the SMFP that was signed by the governor on December 11, 2017 and became effective January 1, 2018. The subject area addressed by the proposed rule changes are the criteria and standards for Surgical Services and Operating Rooms. The proposed rule reflects methodology changes by reference to the SMFP. There is a possibility for state impact if the rules increase the time for CON applications review by staff. None of the fiscal impact is projected to be substantial or to local government.
Health Service Regulation
Director Rulemaking
10A NCAC 14A .0101, .0102, and .0103
Nadine Pfeiffer
919-855-3811
Amend
No
S
-
- These rules are being readopted following the periodic review and expiration of existing rules process. These rules have been identified as "Necessary with Substantive Public Interest." No rule text has been drafted for these readoptions. The readoptions will focus in the areas of rulemaking petitions, rulemaking procedures, and declaratory rulings. The DHSR Division Office is responsible for receiving rulemaking petitions and declaratory rulings with the Director issuing final declaratory ruling decisions. The rule readoptions will consist of updates to current process and procedure, as well as technical changes for rulemaking and declaratory rulings. It is anticipated there will be a state impact due to procedural updates in the rule readoptions. The total amount of anticipated fiscal economic impact is unknown, however none of the fiscal impact is projected to be substantial or to local government. II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
12
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Health Service Regulation
Hospital Bylaw
10A NCAC 13B .3701, .3702, .3703, .3704, .3705, .3706, and .3707.
Nadine Pfeiffer
919-855-3811
Readopt
Yes
S
L
SE These rules are being readopted following the periodic review and expiration of existing rules process. These rules have been identified as "Necessary with Substantive Public Interest." A subcommittee of the Medical Care Commission has been meeting to review the problems with hospital bylaws and develop rule changes for readoption due to the number of comments received during the periodic review process. No rule text has been developed for these rules. Hospitals are non-profit, for-profit and governmentally owned and operated facilities located in urban and rural areas in the state. The Acute and Home Care Licensure & Certification Section of DHSR is responsible for licensing and regulating these providers. It is anticipated these rule changes will affect the cost to the internal operation of the regulated providers for compliance with the rules, however it is unknown at this time what changes to the rules will be made. It is also anticipated there will be cost incurred to the Acute and Home Care Licensure & Certification Section for regulatory compliance activities. Therefore, state and local government will be impacted, as well as a substantial economic impact. The amount of anticipated fiscal economic impact is unknown.
Health Service Regulation
Hospital Construction
10A NCAC .6101, .6102, .6103, and .6207
Nadine Pfeiffer
919-855-3811
Readopt
Yes
S
L
U These rules are being readopted following the periodic review and expiration of existing rules process. These rules have been identified as "Necessary with Substantive Public Interest." A stakeholder group will be consulted on the rule development; however, no rule text has been drafted for these readoptions. These rules will focus on the general construction requirements, listing of referenced codes and standards, application of physical plant requirements, and outpatient surgical facilities. Although the Acute and Home Care Licensure and Certification Section of DHSR is responsible for licensing these providers, the Construction Section of DHSR is responsible for regulating the physical plant aspect of these facilities. Hospitals are non-profit, for-profit and governmentally owned and operated facilities located in urban and rural areas in the state. It is anticipated these rule changes will affect the cost to the internal operation of the regulated providers for compliance with the rules, however it is unknown at this time what changes to the rules will be made. It is also anticipated there will be cost incurred to the Construction Section for regulatory compliance activities. Therefore, state and local government will be impacted. The amount of anticipated fiscal economic impact is unknown.
Public Health
Sewage Treatment and Disposal Systems
15A NCAC 18A .1900
Bob Martin
919-707-5179
Amend
No
S
L
U Re-organization of onsite sewage rules that also includes requirements from 2016/16 GA Session, some of which may have opportunity costs for local environment health inspectors and state Environmental Health Section staff.
Public Health
Submission of Blood Specimens for Screening of Newborns
10A NCAC 43H .0314
Bob Martin
919-707-5179
Adopt
No
S
-
SE SL 2015-272 mandates newborn screening of every birth in NC for severe combined immunodeficiency (SCID). As stated in legislation, the cost of testing a SCID newborn who is not diagnosed until there is a serious infection can range from five hundred thousand dollars ($500,000) to well over four million five hundred thousand dollars ($4,500,000), while the cost of transplanting a SCID infant who is not sick is usually less than one hundred thousand dollars ($100,000) II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
13
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Public Health
Reportable Diseases and Conditions
10A NCAC 41A .0101
Bob Martin
919-707-5179
Amend
No
S
-
- Amend to add hospital acquired infections to reporting requirements. Minimal costs to laboratories, minimal opportunity costs for state Epidemiology staff, and one-time software development costs.
Public Health
Intoximeters: Model Intox ec/ir ii And Intoximeters: Model Intox Ec/IR II
10A NCAC 41B .0322
Bob Martin
919-707-5179
Amend
No
S
-
- Amend to add addition blood alcohol testing device to list of approved devices. State funds from Governor’s Highway Traffic Safety funds will be expended to purchase the devices.
Public Health
Intoximeters: Model Intox ec/ir ii And Intoximeters: Model Intox Ec/IR II
10A NCAC 41B .0323
Bob Martin
919-707-5179
Amend
No
S
-
- Amend to add addition blood alcohol testing device to list of approved devices. State funds from Governor’s Highway Traffic Safety funds will be expended to purchase the devices.
Public Health
Approved Alcohol Screening Test Devices: Calibration
10A NCAC 41B .0503
Bob Martin
919-707-5179
Amend
No
S
-
- Amend to add addition blood alcohol testing devices to list of approved devices. State funds from Governor’s Highway Traffic Safety funds will be expended to purchase the devices.
Public Health
Data Review
15A NCAC 18A .3805
Bob Martin
919-707-5179
Amend
No
S
L
- By amending the current rule, all well owners/leaseholders will receive further educational information regarding the required testing, optional testing, limitations of such testing, the need and frequency for resampling, and exposure limitations, if applicable.
Public Health
TBD
15A NCAC 18A
Bob Martin
919-707-5179
Adopt
No
S
L
U Adopt rules governing permits issued for private drinking water wells for circumstances in which the local health department has determined that the proposed site for a private drinking water well is located within 1,000 feet of a known source of release of contamination.
Mental Health, Developmental Disabilities, and Substance Abuse Services
MH/DD/SAS
Involuntary Administration of Psychotropic Medication
10A NCAC 26D .1104
W. Denise Baker
919-733-7011
Readopt
No
S
U
U The proposed changes are expected to impact staffing requirements at the facilities and may result in additional responsibilities as well as a potential need for additional positions (including salary and benefits).
II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
14
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
MH/DD/SAS
Psychotropic Medication Education
10A NCAC 26D .1105
W. Denise Baker
919-733-7011
Readopt
No
S
U
U The proposed changes are expected to impact staffing requirements at the facilities and may result in additional responsibilities as well as a potential need for additional positions (including salary and benefits).
MH/DD/SAS
Use of Seclusion
10A NCAC 26D .1202
W. Denise Baker
919-733-7011
Readopt
No
S
U
U The proposed changes are expected to impact staffing requirements at the facilities and may result in additional responsibilities as well as a potential need for additional positions (including salary and benefits).
MH/DD/SAS
Use of Restraint
10A NCAC 26D .1203
W. Denise Baker
919-733-7011
Readopt
No
S
U
U The proposed changes are expected to impact staffing requirements at the facilities and may result in additional responsibilities as well as a potential need for additional positions (including salary and benefits).
MH/DD/SAS
Protective Devices
10A NCAC 26D .1204
W. Denise Baker
919-733-7011
Readopt
No
S
U
U The proposed changes are expected to impact staffing requirements at the facilities and may result in additional responsibilities as well as a potential need for additional positions (including salary and benefits).
MH/DD/SAS
Involuntary Referrals and Transfers
10A NCAC 26D .1206
W. Denise Baker
919-733-7011
Readopt
No
S
U
U The proposed changes are expected to impact staffing requirements at the facilities and may result in additional responsibilities as well as a potential need for additional positions (including salary and benefits).
Department of Insurance
Industrial Commission
04 NCAC Chapter 10 -- Industrial Commission
10A -- Workers' Compensation Rules
Kendall Bourdon
919-807-2644
Adopt and Amend
No
U
U
U Following extensive rulemaking from 2011 through 2014, NCIC anticipates some additional rulemaking in Subchapter 10A to make revisions and updates. This anticipated rulemaking will be primarily amendments; however, there may be some new rules adopted.
Industrial Commission
04 NCAC Chapter 10 -- Industrial Commission
10B -- Tort Claims Rules
Kendall Bourdon
(919)-807-2644
Amend
No
U
U
U Following extensive rulemaking from 2011 through 2014, NCIC anticipates some additional rulemaking in Subchapter 10B to make revisions and updates, most likely limited to amendments.
II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
15
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Industrial Commission
04 NCAC Chapter 10 -- Industrial Commission
10L -- Industrial Commission Forms
Kendall Bourdon
(919)-807-2644
Adopt and Amend
No
U
U
U Some existing Industrial Commission Forms that are not currently in rules may undergo substantive revisions which would require their adoption as rules in Subchapter 10L.
Industrial Commission
04 NCAC Chapter 10 -- Industrial Commission
10J -- Fees for Medical Compensation
Kendall Bourdon
(919)-807-2644
Amend
No
U
U
U Due to continued litigation involving the Industrial Commission's medical fee schedule, it is anticipated that additional amendments may be necessary in the upcoming fiscal year.
Department of Justice
NC Sheriffs' Education and Training Standards Commission
Minimum Training Requirements (Annual In-Service Training)
12 NCAC 10B .2005
Diane Konopka
919-662-4375
Amend
No
U
U
U Training requirements expire annually, so rulemaking is required to maintain and update the requirements.
Department of Labor
Elevator and Amusement Device
Safety Standards for Wind Turbine Tower Elevators
13 NCAC 15.0208
Jill Cramer
919-733-0844
Adopt
No
S
-
- Adoption of the American Society of Mechanical Engineers A17.8-2016 Safety Standards for the inspection of wind turbine elevators. NC Elevator Act requires inspection of elevators, including elevators within wind turbines.
Department of Natural and Cultural Resources
Natural Heritage Program
Natural Heritage Program Fees; Inventory Data, Environmental Services, And Data
07 NCAC 13H .0404
Joshua Davis
919-807-7277
Adopt
No
S
-
- If approved, this rule is anticipated to become effective July 1, 2018. It establishes fees to defray the costs associated with customized environmental review services and an online interface for Natural Heritage Program data, as authorized by § 143B-135.272. It is anticipated to produce a relatively small net benefit to state government.
II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
16
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
Department of State Treasurer
TSERS and LGERS Boards of the Retirement Systems Division
Most rules in the Chapter to be readopted or amended
Title 20, Chapter 2
Laura Rowe
919-814-3851
Adopt and Amend
No
U
U
U These rules will be readopted and/or amended to conform to current processes and statutory requirements as needed. It is anticipated that a fiscal note maybe be required in this process; however, the extent of any impacts is not yet known.
Wildlife Resources Commission
NCWRC
Local Water Safety Regulations
15A NCAC 10F .0300
Betsy Haywood
919-707-0013
Amend
No
S
L
- Proposed amendments will shift marker maintenance responsibility from local governments to the WRC. Estimated annual costs for state-wide replacement of missing or damaged markers is approximately $10,000. Because of this change, local governments may incur benefits of approximately $590 annually in materials savings and staff time.
NCWRC
Game Lands Regulations
15A NCAC 10D .0100
Carrie Ruhlman
919-707-0011
Amend
No
S
-
- Multiple modifications to include use of vessels, establishment of new game lands, target shooting, fishing, permit requirements, and administrative changes.
NCWRC
Wildlife Captivity and Rehabilitation
15A NCAC 10H .1400
Carrie Ruhlman
919-707-0011
Adopt
No
S
U
U Rewrites 10H .0300 to comply with legislative changes. Clarifies language and requirements for wildlife rehabilitation and general captivity.
NCWRC
Inland Fishing Regulations
15A NCAC 10C
Carrie Ruhlman
919-707-0011
Amend
No
U
U
- Modify size and/or creel limits; Modifies list of waters designated as Public Mountain Trout Waters to further classifications: Hatchery Supported, Delayed Harvest or Wild Trout
NCWRC
Wildlife Management Regulations
15A NCAC 10B
Carrie Ruhlman
919-707-0011
Amend
No
U
U
U Amend hunting and trapping seasons.
NCWRC
Local Water Safety Regulations
15A NCAC 10F .0377
Betsy Haywood
919-707-0013
Amend
No
-
L
- N/A
NCWRC
Local Water Safety Regulations
15A NCAC 10F .0320
Betsy Haywood
919-707-0013
Amend
No
-
L
- N/A II. Schedule of Anticipated Rules Actions in SFY 2018-2019
* S = State Impact, L = Local Impact, SE = Substantial Economic Impact of $1,000,000 or greater in a 12-months period, U = Impact Unknown.
17
Contact Impacts Division Rule Title and Description NCAC Citation(s) Name Phone Rule Action Federally Required S/ L/ SE/
NCWRC
Local Water Safety Regulations
15A NCAC 10F .0305
Betsy Haywood
919-707-0013
Amend
No
S
-
- N/A
NCWRC
Local Water Safety Regulations
15A NCAC 10F .0350
Betsy Haywood
919-707-0013
Amend
No
S
-
- N/A
NCWRC
Local Water Safety Regulations
15A NCAC 10F .0325
Betsy Haywood
919-707-0013
Amend
No
-
L
- N/A
NCWRC
Local Water Safety Regulations
15A NCAC 10F .0338
Betsy Haywood
919-707-0013
Amend
No
-
L
- N/A
III. Rules with Estimated Local Government Impact Adopted in SFY 2016-2017
* Note that positive values are net costs to local governments and negative values are net benefits. The table does not present unquantified costs and benefits.
18
Table 7. Rules with Estimated Local Governments Adopted Between July 1, 2016 and June 30, 2017 Date Adopted Estimated Impact on Local Government (thousands):* Agency, Division Title of Rule Change Citation(s) Contact 2016- 17 2017- 18 2018- 19 2019- 20 2020- 21 Department of Environmental Quality
Water Resources
Catawba River Basin, Lake James Classification
15A NCAC 02B .0308
Jucilene Hoffman
5/11/17
$14
$0
$0
$0
$0 Air Quality Startup Shutdown Malfunction 15A NCAC 02D .0535, .0545 Joelle Burleson 7/31/16 Unquantified costs and benefits - net impact unknown
Coastal Management
Replacement of Commercial and Residential Structures on the Oceanfront
15A NCAC 7H .0306
Tancred Miller
11/30/16
Unquantified costs and benefits - net impact unknown Coastal Management CAMA Planning and Management Grants 15A NCAC 7L .0101, .0102, .0503 Rachel Love-Adrick 4/26/17 Unquantified net benefits
Waste Management
UST standards and requirements
15A NCAC 02N; 02O
Andria Merritt
3/9/17
$306
$306
$306
$306
$306
Total for Department of Environmental Quality: $320 $306 $306 $306 $306
Department of Health and Human Services
Child Development
Readoption - Child Care Center and Home rules
10A NCAC 09
Dedra Alston
6/27/17
$0
$2,804
$569
$579
$588 Health Service Regulation OEMS Readoption 10A NCAC 13P - chapter Nadine Pfeiffer 11/4/16 $58 -$46 -$46 -$46 -$46
Health Service Regulation
EMS Provider License Requirements
10A NCAC 13P .0204
Nadine Pfeiffer
2/10/17
$0
$0
$0
$0
$0 Public Health Zika Reporting 10A NCAC 41A .0101 Bob Martin 8/11/16 $3 $0 $0 $0 $0
Public Health
Private Wastewater (Septic Tanks) - Engineer Option Permit
15A NCAC 18A .1971
Trish Angoli
2/8/17
$70
$108
$153
$238
$243 Social Services Foster Care Eligibility, Expand Adoption Assistance, Guardianship Assistance Program 10A NCAC 70P .0101; .0102; .0103; .0104; .0105; 10A NCAC 70B .0102; 10A NCAC 70M .0402 Carlotta Dixon 11/9/16 $424 $1,082 $1,818 $2,576 $0
Social Services
Appeal Procedures for License Action for Care Facilities
10A NCAC 70L .0301
Carlotta Dixon
2/2/17
Unquantified net costs III. Rules with Estimated Local Government Impact Adopted in SFY 2016-2017
* Note that positive values are net costs to local governments and negative values are net benefits. The table does not present unquantified costs and benefits.
19
Date Adopted Estimated Impact on Local Government (thousands):* Agency, Division Title of Rule Change Citation(s) Contact 2016- 17 2017- 18 2018- 19 2019- 20 2020- 21 Social Services Normalcy for foster care children 10A NCAC 70I .0308 Carlotta Dixon 6/19/17 $31 $32 $34 $35 $37
MHDDSAS
County Disengagement
10A NCAC 26C .0701, .0702, .0703
Denise Baker
12/20/16
Unquantified costs and benefits - net impact unknown MHDDSAS Forensic Evaluator 10A NCAC 27G .6702; 10A NCAC 27H .0201-.0207 Denise Baker 11/17/16 $400 $409 $417 $424 $0 Total for Department of Health and Human Services:
$986
$4,389
$2,944
$3,806
$821
Department of Natural and Cultural Resources
Historic Preservation Historic Preservation Tax Credit 07 NCAC 04R .0909, .0918-.0926 Joshua Davis 10/11/16 -$300 -$590 -$870 -$1,550 -$1,120
Total for Department of Natural and Cultural Resources:
-$300
-$590
-$870
-$1,550
-$1,120
Department of Justice
Sheriffs’ Education and Training Standards
Education and Training standards for 2017
12 NCAC 10B .2005
Diane Konopka
11/18/16
$2,400
$0
$0
$0
$0
Total for Department of Justice: $2,400 $0 $0 $0 $0
Department of Revenue
Property Tax Commission
Non-attorney Representation
17 NCAC 11 .0216
William Peaslee
7/1/16
Unquantified net costs
Total for Department of Revenue:
Department of Insurance
Building Code Council
2018 NC Energy Conservation Code and Energy Provisions of 2018 NC Residential Code
Barry Gupton
6/13/17
Unquantified costs and benefits - net impact unknown Industrial Commission Electronic Filing Requirements 04 NCAC 10A .0108 Kendall Bourdon 12/20/16 Unquantified net benefits
Total for Department of Insurance:
III. Rules with Estimated Local Government Impact Adopted in SFY 2016-2017
* Note that positive values are net costs to local governments and negative values are net benefits. The table does not present unquantified costs and benefits.
20
Date Adopted Estimated Impact on Local Government (thousands):* Agency, Division Title of Rule Change Citation(s) Contact 2016- 17 2017- 18 2018- 19 2019- 20 2020- 21
Secretary of State
Secretary of State Lobbying Act Electronic Filing 18 NCAC 12 .0214 Ann Wall 5/17/17 Unquantified net benefits
Total for Secretary of State:
Wildlife Resources Commission
WRC
No wake zone Chowan County
15A NCAC 10F .0346
Betsy Haywood
8/25/16
$2
$0
$0
$0
$0 WRC No Wake Zone Pender County 15A NCAC 10F .0321 Betsy Haywood 4/20/17 $1 $0 $0 $0 $0
WRC
Carteret County Town of Cedar Point No-wake zone
15A NCAC 10F .0330
Betsy Haywood
2/16/17
$1
$0
$0
$0
$0 WRC Violator Compact 15A NCAC 10A .1401 - .0406 Carrie Ruhlman 2/16/17 Unquantified net benefits
WRC
Game Lands
15A NCAC 10D .0103
Carrie Ruhlman
2/16/17
Unquantified net benefits WRC No Wake Zone Perquimans Yeopim Creek 15A NCAC 10F .0355 Betsy Haywood 4/20/17 $3 $0 $0 $0 $0
WRC
No Wake Zone Clay County
15A NCAC 10F .0308
Betsy Haywood
4/20/17
$1
$0
$0
$0
$0 WRC No Wake Zone Pender County 15A NCAC 10F .0321 Betsy Haywood 4/20/17 $2 $0 $0 $0 $0
Total for Wildlife Resources Commission:
$11
$0
$0
$0
$0
Total for ALL Agencies (quantifiable impact only):
$3,417
$4,105
$2,380
$2,562
$7