North Carolina register |
Previous | 66 of 272 | Next |
|
small (250x250 max)
medium (500x500 max)
Large
Extra Large
large ( > 500x500)
Full Resolution
|
This page
All
|
NORTH CAROLINA Volume ID, Issue 15 Pages 1428 - 1 650 NOVEMBER 1, 1995 This issue contains documents officially filed through October 18, 1995. Office of Administrative Hearings Rules Division 424 North Blount Street (27601) PO Drawer 27447 Raleigh, NC 27611-7447 (919) 733-2678 FAX (919) 733-3462 Julian Mann III, Director James R. Scarcella Sr., Deputy Director Molly Masich, Director of APA Services Ruby Creech, Publications Coordinator Teresa Kilpatrick, Editorial Assistant Jean Shirley, Editorial Assistant IN THIS ISSUE I. IN ADDITION Industrial Commission 1428 Voting Rights Act 1429-1431 II. PROPOSED RULES Agriculture Plant Industry 1432-1435 Environment, Health, and Natural Resources Coastal Resources 1552 - 1565 Environmental Management 1515 - 1551 Marine Fisheries 1551 - 1552 Wildlife Resources 1565 . Human Resources Medical Assistance 1479-1483 Mental Health, Developmental Disabilities and Substance Abuse Services 1435 - 1479 Social Services 1483-1489 Insurance Actuarial Services 1514 Consumer Services 1489 - 1490 Financial Evaluation Division 1503 - 1513 Investigations Division 1490 - 1492 Property and Casualty 1492- 1502 Special Services Division 1513-1514 Licensing Boards Electrical Contractors 1579-1583 Landscape Architects 1583 - 1584 Public Education Elementary & Secondary 1565 - 1567 Secretary of State Corporations Division 1567-1573 Notary Public Division 1578-1579 Securities Division 1575 - 1578 Uniform Commercial Code 1573 - 1575 m. LIST OF RULES CODIFIED 1585-1588 IV. RRC OBJECTIONS 1589-1594 V. CONTESTED CASE DECISIONS Index to ALJ Decisions 1595-1609 Text of Selected Decisions 94 OSP 0684 1610- 1623 95 CPS 0459 1624- 1627 95 CPS 0540 1628- 1631 95 EDC 0027 1632- 1633 VI. CUMULATIVE INDEX 1635-1650 NORTH CAROLINA REGISTER Publication Schedule (July 1995 - November 1995) Volume and Issue Number Issue Date Last Day for Filing Last Day for Elec-tronic Filing Earliest Date for Public Hearing 15 days from no-tice • End of Required Comment Period 30 days from notice I flst Day to Submit toRRC ** FjirUest Effective Date 10:7 07/03/95 06/12/95 06/19/95 07/18/95 08/02/95 08/21/95 10/01/95 10:8 07/14/95 06/22/95 06/29/95 07/31/95 08/14/95 08/21/95 10/01/95 10:9 08/01/95 07/11/95 07/18/95 08/16/95 08/31/95 09/20/95 11/01/95 10:10 08/15/95 07/25/95 08/01/95 08/30/95 09/14/95 09/20/95 11/01/95 10:11 09/01/95 08/11/95 08/18/95 09/18/95 10/02/95 10/20/95 12/01/95 10:12 09/15/95 08/24/95 08/31/95 10/02/95 10/16/95 10/20/95 12/01/95 10:13 10/02/95 09/11/95 09/18/95 10/17/95 11/01/95 11/20/95 01/01/96 10:14 10/16/95 09/25/95 10/02/95 10/31/95 11/15/95 11/20/95 01/01/96 10:15 11/01/95 10/11/95 10/18/95 11/16/95 12/01/95 12/20/95 02/01/96 10:16 11/15/95 10/24/95 10/31/95 11/30/95 12/15/95 12/20/95 02/01/96 This table is published 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 2B .0103 and the Rules of Civil Procedure, Rule 6. * An agency must accept comments for at least 30 days after the proposed text is published or until the date of any public hearing, whichever is longer. See G.S. 150B-21.2(f) for adoption procedures. ** The "Earliest Effective Date" is computed assuming that the agency follows the publication schedule below, that the Rules Review Commission approves the rule at the next calendar month meeting after submission, and that RRC delivers the rule to the Codifier of Rules five (5) business days before the 1st day of the next calendar month. Revised 07/95 IN ADDITION This Section contains public notices that are required to be published in the Register or have been approved by the Codifier of Rules for publication. PUBLIC NOTICE OF RULE-MAKING NORTH CAROLINA INDUSTRIAL COMMISSION NOnCE IS HEREBY GIVEN that, pursuant to the rule-making authority vested in it by N.C.G.S. § 97-26 and § 143-300, the North Carolina Industrial Commission will consider adopting (1) a Revised Medical Fee Schedule, (2) Revised Rules for Rehabilitation Services, (3) Utilization Review Rules, and (4) Managed Care Rules, all under the Workers' Compensation Act, to become effective November 30, 1995. The Commission solicits the comments of all interested persons, firms, and organizations. Copies of all four of the above may be obtained by any interested person by addressing a request to the address below. Hie Commission requests written comments on all four of the above. In addition, there will be a public hearing held on the 16th day and 17th days of November, at 10:00 a.m., in Room 2149, the Utilities Commission Hearing Room, Dobbs Building, 430 North Salisbury Street, Raleigh, N.C., during which the Commission will hear the verbal comments of persons scheduled to speak. Those desiring to make an oral presentation, not to exceed 15 minutes in length, should submit a request on or before November 14, 1995. Speakers at the public hearing are encouraged to prepare a written summary of remarks for the use of the Commission. WRITTEN COMMENTS, REQUESTS FOR COPIES OF ANY OR Ali OF THE FOUR AND REQUESTS FOR ORAL PRESENTATIONS SHOULD BE ADDRESSED TO COMMISSIONER THOMAS J. BOLCH AT 430 NORTH SAUSBURY STREET, RALEIGH, NC 27611. WRITTEN COMMENTS WILL BE RECEIVED BY THE COMMISSION UP TO AND INCLUDING NOVEMBER 30, 1995. This 17th day of October, 1995. J. Howard Bunn, Jr., Chairman North Carolina Industrial Commission 10:15 NORTH CAROLINA REGISTER November 1, 1995 1428 IN ADDITION City of Greenville North Carolina City Attorney's Office P.O. Box 7207 Greenville, NC 27835-7207 Ms. Elizabeth Johnson Acting Chief Voting Section, Civil Rights Division U.S. Department of Justice P.O. Box 66128 Washington, D.C. 20035-6128 September 28, 1995 RE: Preclearance of Annexation/City of Greenville. N.C. Dear Ms. Johnson: In your letter of August 22, 1995, you advised us that the nine annexations submitted to your office by our office on June 23, 1995 had been precleared pursuant to Section 5 of the Voting Rights Act of 1965. As described in your letter, the ordinance numbers were "94-19, 25, 26, 36, 38, 41, and 45-47," suggesting that all of the ordinances had a prefix number of "94." In fact, only Ordinance #94-19 had that prefix; the remainder of the ordinances submitted for preclearance had a prefix of "95." This apparent oversight has resulted in some confusion in our City Clerk's office and in the office of the local Board of Elections. Accordingly, please confirm that the ordinance numbers for the annexations that received preclearance, as advised in your letter of August 22, 1995, are as follows: Ordinance No. 94-19 (Lot 4, Block A, Park Place and a portion of Hemby Lane) Ordinance No. 95-25 (Thomas F. Taft property) Ordinance No. 95-26 (South Square, Phase 3, Lots 1-2) Ordinance No. 95-36 (Windsor Subdivision, Section 10, Lot 430) Ordinance No. 95-38 (Portion of Thomas F. Taft property) Ordinance No. 95-41 (Covengton Downe Subdivision, Lot 24, Block A) Ordinance No. 95-45 (G. Randy Bailey property) Ordinance No. 95-46 (Willow Run) Ordinance No. 95-47 (Windsor Subdivision, Section 9) If you need any further information or have any questions, please do not hesitate to call me. With best wishes, 1 am Sincerely yours, Robert W. Oast, Jr. City Attorney 1429 NORTH CAROLINA REGISTER November 1, 1995 10:15 IN ADDITION City of Greenville North Carolina City Attorney's Office P.O. Box 7207 GreenvUle, NC 27835-7207 Ms. Elizabeth Johnson Acting Chief Voting Section, Civil Rights Division U.S. Department of Justice P.O. Box 66128 Washington, D.C. 20035-6128 September 29, 1995 RE: Preclearance of Annexation/City of Greenville. N.C. Dear Ms. Johnson: This is a follow-up to my letter to you of yesterday, September 28, 1995, wherein I requested clarification regarding ordinance numbers for 9 annexations with respect to which you had advised us of preclearance under Section 5 of the Voting Rights Act in a letter dated August 22, 1995. In yesterday's letter, I advised you that only Ordinance #94-19 had the "94" prefix, and that the remaining 8 ordinances should have had a prefix of "95. " That information is still correct with respect to all of the ordinances except 94-19. In my letter to you of June 21, 1995 (copy enclosed), I listed Ordinance #94-19 as one of those with respect to which the City was requesting preclearance. A review of the ordinances actually submitted for preclearance indicates that Ordinance #94-19 should be Ordinance #95-19. A certified copy of that ordinance is enclosed for your use. All of the other ordinance numbers in that submission are correct, but clarification of your August 22, 1995 letter with respect to those ordinance numbers is stUl necessary. I apologize if I have added confusion to this already confusing matter. If you have any questions or need any further information, please give me a call. With best wishes, I am Sincerely yours. Robert W. Oast, Jr. City Attorney 10:15 NORTH CAROLINA REGISTER November 1, 1995 1430 IN ADDITION U.S. Department of Justice Civil Rights Division DLP;GS:VNN:tlb Voting Section DJ 166-012-3 P.O. Box 66128 95-1826 Washington, D.C. 20035-6128 October 10, 1995 Robert W. Oast, Jr. Esq. City Attorney P.O. Box 7207 Greenville, North Carolina 27835-7207 Dear Mr. Oast: This refers to your September 28 and 29, 1995, letters concerning the submission under Section 5 of the Voting Rights Act, 42 U.S.C. 1973c, of nine annexations (ordinance Nos. 95-19, 25, 26, 36, 38, 41, and 45 to 47) and their designation to districts of the City of Greenville in Pitt County, North Carolina. We have reviewed our records and it appears that our August 22, 1995, letter contained a typographical error in that it stated the incorrect year. Please be advised that our records show that on August 22, 1995, Section 5 preclearance was granted to the above-referenced changes. We apologize for any inconvenience we may have caused you in this matter. Sincerely, Deval L. Patrick Assistant Attorney General Civil Rights Division By: Elizabeth Johnson Acting Chief, Voting Section 1431 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES TITLE 2 - DEPARTMENT OF AGRICULTURE Notice is hereby given in accordance with G.S. 150B-21.2 that the North Carolina Board of Agricul-ture intends to amend rules cited as 2 NCAC 48A .1702; 52B .0207, .0212, .0302; 52C .0105 and adopt 2 NCAC 48C .0029. Proposed Effective Date: February 1, 1996. A Public Hearing will be conducted at 10:00 a.m. on December 7, 1995 at Gov. James B. Hunt, Jr. Horse Complex (Restaurant), 4601 Trinity Rd. , Raleigh, NC 27607. Reason for Proposed Action: 2 NCAC 48A .1702 - To add the MUe-a-Minute plant to the official list of noxious weeds, in order to provide for the regulation and control. 2 NCAC 48C .0029 - To require the variety to be stated on the labelfor certain kinds of seed, in order to protect buyers of seed. 2 NCAC 52B .0207 - To establish requirements for importa-tion of "sporting swine" into North Carolina, in order to prevent the introduction and spread of swine diseases and to modify pseudorabies program requirements for importation of all breeding swine. 2 NCAC 528 .0212 - To add the Brushtail Possum to the list of animals for which a permit is requested prior to importation, in order to prevent the introduction and spread of animal diseases. 2 NCAC 52B .0302 - To require "sporting swine" offered for sale within the state to originate from a validated brucellosis-free herd, in order to prevent the spread of brucellosis in swine. 2 NCAC 52C .0105 - To require "sporting swine" offered for sale within the state to originate from a qualified pseudorabies-negative herd, in order to prevent the spread of pseudorabies among swine and to modify pseudorabies program requirements for movement of all feeding and breeding swine within the state. Comment Procedures: Interested persons may present their statements either orally or in writing at the public hearing or in writing prior to the hearing by mail addressed to David S. McLeod, Secretary of the North Carolina Board of Agriculture, P.O. Box 27647, Raleigh, NC 27611. Fiscal Note: These Rules do not affect the expenditures or revenues of state or local government funds. CHAPTER 48 - PLANT INDUSTRY SUBCHAPTER 48A - PLANT PROTECTION SECTION .1700 - STATE NOXIOUS WEEDS .1702 NOXIOUS WEEDS (a) Class A Noxious Weeds. The North Carolina Board of Agriculture hereby establishes the following list of Class A Noxious Weeds: (1) All weeds listed in 7 C.F.R. 360.200 which is hereby incorporated by reference including subsequent amendments and editions. Copies of the Code of Federal Regulations may be ob-tained from the Superintendent of Documents, Government Printing Office, Washington, DC 20402, at a cost of twelve dollars ($12.00); (2) Elodea, African ~ Lagarosiphon spp. (all spe-cies); (3) Fern, Water ~ Salvinia spp. (all except S. rotundifolia); (4) Mile-a-Minute ;; Polygonum perfoliatum: (^ £5} Stonecrop, Swamp — Crassula helmsii; (5) £6} Water-chestnut — Trapa spp. (b) Class B Noxious Weeds. The North Carolina Board of Agriculture hereby establishes the following list of Class B Noxious Weeds: (1) Betony, Florida—Stachys floridana Shuttlew.; (2) Fieldcress, Yellow—Rorippa sylvestris (L.) Bess.; (3) Lythrum — Any Lythrum species not native to North Carolina; (4) Puncturevine—Tribulus terrestris L.; (5) Thistle, Canada—Cirsium arvense (L.) Scop.; (6) Thistle, Musk—Carduus nutans L.; (7) Thistle, Plumeless—Carduus acanthoides L.; (8) Watermilfoil, Eurasian — Myriophyllum spicatum L. ; (9) Waterprimrose, Uruguay — Ludwigia uruguayensis (Camb.) Kara. (c) Class C Noxious Weeds. The North Carolina Board of Agriculture hereby establishes the following list of Class C Noxious Weeds: none. Statutory Authority G.S. 106-420. SUBCHAPTER 48C - SEEDS .0029 VARIETY LABELING The variety name shall be stated on the seed analysis label for the following kinds of seed: (1) cotton; (2) field com; (3) peanuts: (4) soybeans; (5) tobacco; and (6) wheat. Statutory Authority G.S. 106-277.15. CHAPTER 52 - VETERINARY DIVISION SUBCHAPTER 52B - ANIMAL DISEASE 10:15 NORTH CAROLINA REGISTER November 1, 1995 1432 PROPOSED RULES SECTION .0200 - ADNUSSION OF LIVESTOCK TO NORTH CAROLINA .0207 IMPORTATION REQUIREMENTS: SWINE (a) All swine imported into the state, except by special permit or for immediate slaughter, shall be accompanied by an official health certificate issued by a state, federal, or accredited veterinarian stating that they are free from any signs of an infectious or communicable disease and are not known to have been exposed to same. The health certificate shall contain the ear tag number of each animal or other identification acceptable to the State Veterinarian. Swine imported for feeding or breeding purposes shall be moved in clean and disinfected trucks or other conveyances. (b) Breeding swine shall originate from a "Validated Brucellosis-Free" herd or a "Validated Brucellosis-Free" State and originate from a "Qualified Pseudora-bies- Negative" h*fd herd, Qualified-Negative Gene-Altered Vaccinated Herd (QNV) or Pseudorabies Stage IV or V (Free) State as defined in Title 9, Parts 78.1 and 85 of the Codo of Fadoral Rogulaliono. Parts 78 . 1 and 85 of Titl e 9 of th e Code of Fodoral Regulationo are hereby adoptod by rcfcronce, including subseque nt amendments.—Copios of the Codo of Fodoral Regulations may bo obtained from tho Govomment Printing Offioo, Waohington, B.C., at a ooot determined by that offic e. (c) All feeder swine imported into the state shall be accompanied by an official health certificate issued by a state, federal or accredited veterinarian stating that: (1) No pseudorabies vaccine has been used in the herd of origin, unless the herd is a pseudorabies Controlled Vaccinated herd as defined in Title 9, Part 85. 1 of tho Code of Federal Regulations, or a poeudorabi eo monitored vaccinated herd; and (2) The swine were tested and found negative for pseudorabies within 30 days prior to importa-tion; or (3) The swine originated from a pseudorabies-free area as determined by the State Veterinarian; or (4) The swine originated firom a Qualified Pseudora-bies Negative Herd as defined in Title 9, Part 85 of the Code of Federal Regulationo ; or (5) The swine originated from a monitored feeder pig herd. For the purp>oses of this Rule, in order to qualify' aa a monitored feeder pig herd, testing must have boon performed in aooordanoe-with the following standards: (A) — In herds of ton or fewer brooding swine, all brooding owine must test negative within 12 months prior to importation. fB) In herds of 1 1 —to 35 breeding swine,—tea randomly selected breeding animals, (to in elude giltii. sows and boars) must teet negative within 12 months prior to importation. (C^ In herds of more than 35 breeding swine, either 30 or 30 percent of tho total herd. whiobovor is looa, randomly soloctod brooding ffi lto, BOWS and boaro muot toot negative within 12 months prior to importation. (©) — All brooding gilto, sows and booro in a herd shall bo subject to random selection for testing. (E) Testing must be done by use of an official poeudorabioo toot, as de fined in Titl e 9, Port 85 of the Codo of Fodoral Regulations. (d) Healthy swine for feeding purposes may move directly from a farm of origin in a contiguous state on which they have been located for not less than 30 days to a livestock market or stockyard in North Carolina that has been state-federal approved for handling feeder swine, without the health certificate required herein, provided such swine are accompanied by proof of the pseudorabies status of the herd of origin acceptable to the State Veterinarian. Such swine shall be inspected by a state or federal inspector or approved accredited veterinarian prior to sale at the market. (e) Healthy swine may be shipped into the state for immediate slaughter without a health certificate provided they go directly to a slaughtering establishment approved by the State Veterinarian, or to a state-federal approved livestock market or stockyard for sale to an approved slaughtering establishment for immediate slaughter only. (f) j\fl uflod in Paragraph (c)(1) of thio Rulo, a "monitorod vaooinatod herd" moono a herd in which all brooding swine over six months of age have boon officially vaooinatod by on accredited vetorirutrian s^'ith a vaocine tho titers of which can bo distinguished from psoudorabios fiold infections and tho herd hac paooed an official random sample toot or complete herd toot during the preceding 12 months.—(From propoood Pseudorabies Emdication Uniform Methods and Rules of tho United States Department of Agriculture.) (f) Sporting swine: (1) For purposes of this Rule: (A) "Sporting swine" means any domestic or feral swine intended for hunting purposes and in-cludes the progeny of these swine whether or not the progeny are intended for hunting purposes; (B) "Feral swine" means any swine that have lived any part of its life free roaming. (2) No person shall import sporting swine into North Carolina unless: (A) The swine have not been fed garbage within their lifetime; and the herd of origin is vali-dated brucellosis free and qualified pseudora-bies negative; and CB) The swine have not been members of a herd of swine known to be infected with brucellosis or pseudorabies within the previous 12 months; and im The individual animals six months of im or over have a negative brucellosis and pseudora-bies test within 30 days of movement; and The swine have not been a part of a feral swine population or been exposed to swine 1433 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES captured from a feral swine population within the previous 12 months: and CE) The swine are accompanied by an official health certificate or certificate of veterinary inspection identifying each animal by ear tag, breed, age, sex, the state of origin, and certi-fying that the swine meet the import require-ments of North Carolina. Note: Violation of this Rule is a misdemeanor under G.S. 106-307.6, which provides for a five hundred dollar ($500.00) fine, six months' imprisonment, or both. Statutory Authority G.S. 106-307.5; 106-316.1; 106-317; 106-318. .0212 IMPORTATION REQUIREMENTS: WILD ANIMALS (a) A person shall obtain a permit from the State Veteri-narian before importing any of the following animals into this State: (1) Skunk; (2) Fox; (3) Raccoon; (4) Ringtail; (5) Bobcat; (6) Coyote; (7) Morten. Marten: (8) Brushtail Possum (Trichosurus vulpecula"). (b) Permits for the importation into this State of any of the animals listed in (a) of this Rule shall be issued only if the animal(s) will be used in a research institute inotitute, or for public display or organized entertainment as in zoos or circuses. (c) Llamas, all cervidae, bioon bison, and all other bovidae other than domestic cattle may be imported into the State if accompanied by an official health certificate issued by an accredited veterinarian which states that: (1) all animals six months of age or older have tested negative for brucellosis within 30 days prior to importation; and (2) all animals six months of age or older have tested negative for tuberculosis within 60 days prior to importation pursuant to the guidelines of the United States Department of Agriculture Veterinary Services Notice dated December 31, 1990, which states "the cervical test for cervidae is the intradermic injection of 0.1 ml. of U. S. Department of Agriculture (USDA) contract PPD Bovis tuberculin in the midcervical region with reading by observation and palpation at 72 hours, plus or minus 6 hours"; and (3) the herd of origin has had no brucellosis or tuberculosis diagnosed within the past 12 months. (d) Other wild and semi-wild animals, under domestica-tion or in custody may be imported into this state State. provided that a report of the number of animals by species is made to the State Veterinarian within 96 hours after entry into the otate, State and that an immediate opportunity for examination to determine the health status of such animals is afforded the State Veterinarian or his authorized represen-tative. Statutory Authority G.S. 106-317; 106-400. SECTION .0300 - BRUCELLOSIS REGULATIONS .0302 BRUCELLOSIS REQUIREMENTS FOR SALE OF CATTLE AND SWINE (a) All cattle offered for public sale must test negative for brucellosis within 30 days preceding the date of sale except those cattle listed as follows: (1) cattle sold for immediate slaughter; (2) native heifers and bulls less than 18 months of age; (3) steers and spayed heifers; (4) officially brucellosis vaccinated heifers of the dairy breeds imder 20 months of age (provided that all officially brucellosis vaccinated heifers of any breed that are parturient or post parturi-ent must be tested and negative for brucellosis); (5) officially brucellosis vaccinated heifers of the beef breeds imder 24 months of age (provided that all officially brucellosis vaccinated heifers of any breed that are parturient or post parturi-ent must be tested and negative for brucellosis); (6) cattle originating directly from a certified brucel-losis- free herd; (7) heifers under 12 months of age purchased for feeding purposes; at the discretion of the State Veterinarian, buyers of feeder heifers under 12 months of age may be required, before they remove such cattle from place of purchase, to sign a statement of intent to feed those cattle not tested for brucellosis in isolation from breeding animals. Willful failure of a buyer of such cattle to sign a statement of intent when re-quested by the State Veterinarian or his autho-rized representative or willful failure to comply with such a signed statement of intent is a violation of this Section. (b) All swine sold or offered for sale for breeding purposes must originate directly from a validated brucello-sis- free herd unless they originate from a state classified as swine-brucellosis free. (c) Sporting swine: (1) For the purpose of this Rule: (A) "Sporting swine" means any domestic or feral swine intended for hunting purposes and in-cludes the progeny of these swine whether or not the progeny are intended for hunting purposes: (B) "Feral swine" means any swine that have lived 10:15 NORTH CAROLINA REGISTER November 1, 1995 1434 PROPOSED RULES any part of its life free roaming. (2) All sporting swine sold or offered for sale must originate directly from a validated brucellosis-free herd. Statutory Authority G.S. 106-389; 106-396. SUBCHAPTER 52C - CONTROL OF LIVESTOCK DISEASES: MISCELLANEOUS PROVISIONS SECTION .0100 - DISEASED AND DEAD ANIMALS .0105 PSEUDORABIES STATUS AND TESTEVG (a) Feeding and breeding swine may not be transported on any public road or held in any public place unless accompa-nied by a written permit from the State Veterinarian or proof satisfactory to the State Veterinarian that: (1) No pseudorabies vaccine has been used in the herd of origin, unless the herd is a pseudorabies Controlled Vaooinated herd as de fined in Title 9. Part 85. 1 of the Code of Federal Rogulations, or a psoudorabios monitored vaccinated herd or unless the use of vaccine has been approved under the North Carolina Pseudorabies Program; and (2) The swine were tested and found negative for pseudorabies within 30 days prior to movement; or (3) The swine originated from a pseudorabies-free area as determined by the State Veterinarian; or (4) The swine originated from a Qualified Pseudora-bies Negative Herd as defined in Title 9, Part 85 of the Code of Federal Regulations; or (5) The swine originated from a monitored feeder pig herd; or herd.—For the purposes of this Rule, in orde r to qualify' as a monitored feeder pig herd, testing must have boon porformod ia accordanoc with the following stimdords: (A^ In herds of ton or fewer breeding swine , all breeding owine must test negativ e within 12 months prior to movement. (B) In herds of 1 1 to 35 brooding swino, ton randomly selected breeding animals, (to in elude gilts, sows and boars) must test negative within 12 months prior to movement. fG^) — In herds of more than 35 brooding swine. e ith e r 30 or 30 pe rcent of the total herd, whichever is less, randomly oeleoted breeding gilts, sows and boars must tost negative within 12 months prior to movement. (©^ All brooding gilts, cows and boars in a herd shall be subj ect to rtmdom selection for testing. (E) Testing must bo done by use of an offioial pseudorabies test, as dofmod in Title 9, Part 85 of the Code of Fodoral Rogulationo; Of (6) The swine are being transjwrted or held in accordance with the North Carolina Pseudora-bies Program. (b) The State Veterinarian or his representative is autho-rized to test swine for pseudorabies in accordance with G.S. 106-400.1. (c) Swine transported on a public road or held in a public place in violation of this Rule are subject to quarantine and may be transported or held only by written permit from the State Veterinarian or his representative. {4)—As usod in Paragraph (aXl) hereof, a "monitored vaocirmtod herd" moons a herd in which all brooding swino o'i 'er six months of ago have boon officially vaooinated by an aooredited veterinarian with a vaooine the titers of which oan bo distinguished from psoudorabios Field infoctiono and the herd has {xisscd an official random sample tost or oomploto herd test during the preceding 12 months.—(From proposed Poeudombios Eradication Uniform Motbodo and Ruloo of tho United Statos Dopartmont of Agrioulturo.) (d) Sporting swine: m (A} mi m For the purpose of this Rule: "Sporting swine" means any domestic or feral swine intended for hunting purposes and in-cludes the progeny of these swine whether or not the progeny are intended for hunting purposes; "Feral swine" means any swine that have lived any part of its life free roaming . All sporting swine sold or offered for sale must originate directly from a qualified pseudorabies-negative herd. Note: Violation of this regulation is a misdemeanor under G.S. 106-22(3), and is punishable by fme or imprisonment of not more than two years, or both. Statutory Authority G.S. 106-22(3); 106-400.1. TITLE 10 - DEPARTMENT OF HUMAN RESOURCES Notice is hereby given in accordance with G.S. 150B-21.2 that the Director of the Division of Mental Health, Developmental Disabilities and Substance Abuse Services intends to adopt rules cited as 10 NCAC 14C . 1015 - . 1018. . 1149 - . 1160, amend rules cited as 10 NCAC 14C .1001 - .1002, .1004- .1006, .1010- .1014, .1101 - .1102, .1114. .1123, .1133 - .1137, .1140. .1148; 14D .0006 and repeal rules cited as 10 NCAC 14C .1003, .1008. .1103 - .1105, .1107, .1110- .1111, .1115 - .1121, .1125 - .1131. .1138- .1139, .1141 - .1147. Proposed Effective Date: February 1 , 1996. Instructions on How to Demand a Public Hearing (must be requested in writing within 15 days of notice): Any 1435 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES individual who wishes to demand a public hearing should contact Charlotte Tucker, Division of Mental Health, Developmental Disabilities and Substance Abuse Services, 325 N. Salisbury Street, Raleigh, NC 27603, (919-733-4774) within 15 days of this Notice. Reason for Proposed Action: The statewide implementa-tion of the Pioneer Funding System and the Division 's move away from categorical funding sources has resulted in the necessity for a complete rules revision regarding accounting procedures for area programs and contract agencies. Comment Procedures: Any interested person may submit written comments and state the Rules to which the comments are addressed. These comments will be accepted through December 1, 1995. Fiscal Note: These Rules do not affect the expenditures or revenues of state or local government funds. CHAPTER 14 - MENTAL HEALTH: GENERAL SUBCHAPTER 14C - GENERAL RULES SECTION .1000 - ACCOUNTING STANDARDS FOR ALL RECIPIENTS OF FUNDS ADMINISTERED BY THE DIVISION .1001 EFFECT OF THIS SECTION The requirements of this Section shall apply to all area programs and their subrecipient agencies receiving funds administered by the Division and discussed in Section . 1 100 of this Subchapter. Statutory Authority G.S. 122C-147.1. .1002 MEMORANDUM OF AGREEMENT AND ANNUAL SERVICE PLAN (a) An annual plan and budgot shall bo required from oroa programs before any state or federal funds administered by the Division mny be allooated to an area program.—Suoh annual plan and budgot shall bo in accordanco with Chapter 159 of the Gonoral Statutes. The area program shall develop and maintain their annual budget in accordance with G.S. 159. (b) Tho annual plan and budgot of an area program shall bo approved by the area board and oignod by the aroa board chairman. The area program shall prepare and submit to the Division the annual service plan and Memorandum of Agreement in accordance with G.S. 122C-143.2. Detailed instructions are issued annually by the Division. Statutory Authority G.S. 122C-112; 122C-143.2; 122C- 144.1. .1003 BUDGET FORM (a) — The annual budget shall be on a standard form available from tho fiscal sorviooo ooction of tho Division. Qet)—The otondord form oholl require information on the ootimatod oxpondituroo and revenue of the area programo. On an annual basis tho Division Director will iasuo inatnic tions which apooify tho roquirod infonnatioa. Statutory Authority G.S. 143B-10. .1004 REPORTS REQUIRED (a^ — iMl programs receiving funds administered by the Division shall submit quarterly roporto of roooipts and oxponditufos to tho Division. (b) — Suoh quarterly reports shall bo submitted on a standard form available from tho Fisoal s«r>'io eo section of the Division.—Other formats may be used if approved by tho Division. (c) Suoh standard form or format shall require a otatomont of roooipts—and expenditures by major t)'peo of funds received and expended during the quarter reported on and during tho fiscal year to date.—Tho amount of suoh roooipts or oxpondituros shall bo compared to tho annual budgot and the amount of unrealized receipts and unexpended expondi ture line items shall be indicated. (d) Such standard forms or foi'uiat shall bo signed by tho area director and fiscal officor. (e) Quarterly reports are to be filed no later than the 15th of th e month following the quarter being reported upon. Exceptions may bo made to this date for justifiable roasons. The Secretary may require reports in accordance with G.S. 122C-144.1. Statutory Authority G.S. 122C-112; 122C-144.1. .1005 ANNUAL AUDIT REPORT Each program receiving funds administered by the Division shall submit an annual audit audited financial statomonts in accordance with requirements of G.S. 122C 132, 122C 1 43, G.S. 159-34 and the Local Govern-ment Commission. Commisoion by the date indicated on the approved audi t oontroot or the date indicated on the amended audit contract. Statutory Authority G.S. 122C-112; 122C-144.1; 159-34. .1006 BUDGET REVISIONS (a) No revision of tho budgot as doscribod in this Section or transfer of funds from a cost center stated on the budgot to another cost center shall be made without the prior approval of tho area board. Tho aroa board may authorize tho aroa program budgot officer to transfer moneys from one line item of expenditure to another within the same cost center as Uotod on the approved budget ordinance subj ect to written limitations and proooduros tho aroa board proscribes. All such tronsfora shall bo reported to tho aroa board at its next regular meeting and shall be entered in tho minutes. An information copy of all locally approved budget revisions shall bo forvi'ardod to tho appropriate regional office of tho Division to tho attention of tho regional accountant.—Area 10:15 NORTH CAROLINA REGISTER November 1, 1995 1436 PROPOSED RULES programs shall vorif>' that any tronafor of funds is in oomplionoo with the Divioion'o oooounting rulee in this Sootion and Sootiop . 1 100 of thio Subchapter and Rule .0006 in 10 NCAC 11D and G.S. 122C 143.—The following budget revisions shall bo approved by tho regional ofFioo: f4^ any budget revioion within a oost oenter or boPiii eon ooot c anters whioh would cause division funds to bo transferred from one disability area to another or from one categorical—fund to another; and (S^ any budget revision ' 'I'hioh ohongeo client oor vices OS approved in tho annual plan and budget. (b) Tho Division shall monitor for budgetary complianco of expendituree at the cost center total level. (o) Tho area program budget revisions shall be on a forra prescribed by the Division. (d) Approved rovisions or transfers shall bo reflected in tho next quarte rly report of the area program.—If the revision affects funds for Titl e XX of the Social Seourit)' Act. 4 2 U.S.C. 13 97 through 13Q7(f). the next monthly request for roimbursomont shall reflect tho revision. Caro shall be taken to assure that budget revisions ore made timely for Title XX because the Division will not honor monthly request—for payments—for vi hich tho apprc'ed budget docs not agroo with request for payment. (e) — The need for each budget revision shall be justified briefly and explicitly on the aomo form ao the budget revision, if space f)ormit»: — If space doos not permi tT-a separate form shall bo attached. (f) Budget reviaionii whioh roduoo oalarieo and wagee and fringe benefits because of vacant positions shall include in tho justification a statement explaining how tho current coat for which tho lapsed salaries are to be used are to bo supfwrted in oubooquent years.—Lapsed salaries and wages shall not bo transferred to other line items solely to expend tho budget, to stockpile commoditiee or to roplaco existing equipment unless tho existing oquipmont con no longer moot tho program ncodo for v.'hich it vi'as purchased. (g) i\rea programs which contract with private or public sori'icc providers on any basi s other than a unit cost basis, fixed rote basis, or fee for 6er.'ice basis shall utilize a policy for budget revisions no l ees string ent than the revision policy that the Division applies to th e area program. The area board shall at its discretion allow the area director to approve budget rovisions from contractors.—It shall bo neceoGar)' for the area board to incorporate in tho minutes of a board mooting that the area director has authority' to approve budget rovisions from contractors. (h) Tho Kvision shall not participate in any expenditures not in acoordanoe with an approved budget. ^—The area program shall oonsult with the appropriate regional office of tho Division for any needed clarification or assistance. Revisions to the budget must be in accordance with G.S. 159-15. Statutory Authority G.S. 159-15. .1008 INVOICES Invoices used to bill for oervioeo reoderod by area pro grame shall bo on a ntondord formi—Suoh form invoioe ohall require such information as namo and address of purchaoof , invoioe date and numbor, doooription of sorviooe rwidorod and amount of invoioe. Statutory Authority G.S. 122C-112; 122C-147. .1010 CO^^TRACT REQUIREMENTS FOR AREA PROGRAMS (a) This Rule applies to all contracts between an area program (hereafter referred to as "contractor") and contract providers (hereafter referred to as "contractees"). For purposes of this Rule, contractees include: (1) an individual with whom a contract is made for professional services, including consultants and guest speakers; and (2) an agency agency, other than another area program, with whom a contract is made for the provision of services to one or more clients. (b) The basis for the relationship between the contractor and the for-profit or non-profit contractee is the written contract. All mutual understandings and expectations shall be clearly stated in the contract. Contracts botwoon a contractor and a profit or non profit oontraotoo, All contracts for provision of services to clients, shall contain, at a minimum, the following provisions as indicated in this Rule.—Minimum requiromonts for all oontracts shall bo: Rule, except that Subparagraphs (b'Xll) and (b) (IS) of this Rule shall not apply to contracts with individuals: (1) names of the contracting parties; (2) beginning and ending dates of the contract period; however, no contract shall extend be-yond the fiscal year; years, except as allowed by G.S. 159; (3) detailed description of the services to be pro-vided and the expectations of the parties; (4) amount and method of payment; (5) address and social security number or IRS identification number of contractee; (6) the following statement when a contract period is greater than 30 days: "This contract may be terminated at any time upon mutual consent of both parties or 30 days after one of the contract-ing parties gives notice of termination;" (7) a statement which indicates that the contract may be terminated immediately with cause upon written notice to the other party; the cause shall be documented in writing to the other party detailing the grounds for termination; and if applicable, the contract may contain a provision indicating method of payment of liquidated damages uf>on such termination; (8) a clause which indicates that the contractor (area) is held harmless from acts committed by the contractee; 1437 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES (9) signature of each party to the contract; and (10) a pre-audit statement in accordance with G.S. 159 28 . 159-28; (o) Additional roquiromonto when oontmoting with a profit or non profit oontraotoo shall bo oo followo: (11) fi^ either a Division approved unit cost baais or the total coot basis (lino item budget) shall bo utilized; a statement specifying the procedure for budget revisions, if applicable, and provisions for fund balance; and a statement which in cludoo! (12) (A) the procedure for resolving disagreement between the contracting parties; (13) (^ for total ooot oontracto, for equipment pur-chased with non unit cost reimbursement funds, such as start up or special purpose funding, title to assets purchased under the contract in whole or in part rests with the contractor so long as that party continues to provide the services which were supported by the contract; if such services are discontinued, disposition of the assets shall occur as approved by the Division; (14) (€) client records of the contractee shall be accessible for review for the purpose of monitor-ing services rendered, financial audits of third party payors, research and evaluation; (15) (©) upon request, the contractee shall provide data about individual clients for research and study to the contractor; (16) (E) the contractor requirement to provide to the contractee all pertinent rules, regulations, stan-dards and other information distributed by the Division necessary for the performance of the contractor under the terms of the contract; (17) (F) the contractor requirement to monitor the contract to assure compliance with rules of the Commission, the Secretary and G.S. 122C-142; (18) (G) a copy of the independent audit referenced in Subparagraph (e){4) (b)(20) of this Rule, if required, shall be forwarded to the Office of the State Auditor at 300 North Salisbury Street, Raleigh, North Carolina 27603-5903. (19) (3) provisions which outline the responsibility of the contractee for the adoption, assessment, collection and disposition of fees in accordance with G.S. 122C-146; (20) ^ a requirement that the contractee shall make available to the contractor its accounting records for the purpwse of audit by State authorities and that the party will, when required by general statute or in accordance with APSM 75-1, Section 4.2, have an annual audit by an inde- [jendent certified public accountant. (c) Agreements with another area program for provision of services to clients shall be incorporated into the annual Memorandum of Agreement referenced in Rule .1002 of this Section. Statutory Authority G.S. 122C-112; 122C-141; 122C-142; 122C-146; 159-40; 143-6. 1. .1011 FUND ROUTING Except as authorized by the General Assemblv: (1) (a^ all All oommunity related state and federal funds allocated by the Division for the operation provision of community aduk mental health, child mental health, mental retardation, aloohol and drug abuoe programe developmental disability and substance abuse services shall be allocated to through the area program, program unloos other wioe required by the grantor of ouoh funds to the Division. (2) (b) Programs providing mental hoolth, mental rotxirdation and oubotanoo abuse oervioos which oeri'e more than one oatohment area and are not imder a looal mental health authority' may reoeivo oommunity funds directly from the Division, the Division mav allocate and contract directly for the provision of non-treatment activities including but not limited to administration, training and preven-tion. Statutory Authority G.S. 122C-112; 122C-147.1;122C-131. .1012 DENIAL, DELAY OR REDUCTION OF PAYMENTS The flow of funds under any of the funding programs dioousood in Sootion .1100 of this Subchapter shall, oo determined by the Division Director, bo delayed or cancolod to programs which do not timely make all reports required by this Section. The Division may delay, reduce or deny pavments to area programs in accordance with G.S. 122C- 151. Statutory Authority G.S. 122C-151. .1013 RECOVERY OF DIVISION FUNDS IN NON-COMPLLVNCE SITUATIONS (a) The Division shall review all non-compliance situa-tions occurring in area programs to determine if division funds were involved in the non-compliance situations. Non-compliance situations are those situations or actions that occur which are not in accordance with division, depart-ment, state, and federal rules, policies, regulations, or statutes. (b) The basis for determining if division funds wore involved in the out of oomplianoe situation shall bo the Division's effective rate of participation, if any, in the situation, shall be determined in accordance with Section 20 of Volume IV of the Pioneer Funding System Operating 10:15 NORTH CAROLINA REGISTER November 1, 1995 1438 PROPOSED RULES Manual. {^ Tho offeotive rate of division participation for aroa matching oupported ooot ohall bo determined on on individual cost contor basis by dividing tho aroa matching funds allocatod for tho )'oar by tho total budgeted expendituroo inoludod in that ooot oenter. (3) TTic offootivo rato of division participation for tho division's catogorical funds shall bo dotor mined by dividing th e oategorioal fund per ooet center involved by the total budgeted expendi turog in tho coot oontor or cost contors Lnvolvod. (c) Division participation in non-compliance situations shall be recovered through receipt of a check or by reducing the current year's allooation of payment of allocated division funds otherwise due the area program . Tho Regional Director shall notify' tho Director of tho aroa program of the proposed re>duotion and the reaoono for tho reduction on a standard form to bo provided by the fiocal oer<'ioeo oeotion of tho Division.—Throo oomplotod copies of this form shall bo sent to tho Division's chiof of Fiscal sorvicoe by tho Re gional Director so that neoeooar)' accounting entrioo to re flect the reduction con be recorded in the Division's accounting rocorda if no app>oal is Filed in accordanco with (f) of this Rule.—If tho Division's allocation for tho Fiscal year has already boon dmv.Ti doviTi when the non compliance situation becomes known, the The area program shall reimburse the Division within 60 days of being invoiced or notified of the required payback, unless notiFication of appeal is rendered by the Area Authority . (d^ — If, for the Fiscal year in which the non compliance situation occurred, the offoctivo participation rate at tho ond of tho Fiscal year basod on actual annual expenditures is different than the rate used at the time of the reduction of division funds, an adjustment shall be made to reflect the increased amount duo to tho Division or to credit tho amount overpaid by tho area program against any amount duo.—H no amount is due from the area program Vi hioh con be credited with the overpniymont, the Division shall refund the overpayment from available funds within tho operating budget p>onding any nocessar>' approval required by tho Division of State Budget. ( e) I'Vny non compliance amount determined at the end of the Fiscal year in tho Division' s tentative settlement report shall bo handled in a mannor consistent with (b)(1) and (b)(3) of this Rule. (d) (f) If the Director of the area program disagrees with the non-compliance decision, thea within 60 days of receipt of the notiFication of non-compliance, the Director of the area program shaii may send to the Division Director a request for appeal pursuant to G.S. 122C-145, 122C \A1 and 10 NCAC IK .0900 (DHR Administrative Standards). (e) (g) Pending the final agency decision on the appeal of the non-compliance decision, the Division shall not with-draw or reduce the amount of funds due the area program. Statutory Authority G.S. 122C-112; 122C-147. .1014 EXPENDITURE OF DIVISION FUNDS SETTLED ON AN EXPENDITURE BASIS (a) The Division shall allow area programs to may budget division catogorical funds within cost centers that also include, but are not limited to, local funds, aroa matching funds, federal funds or other division oategorioal funds. When area programs elect to budget division oategorioal fiinds within a cost center that is settled on an expenditure basis with such other funds, funds shall be considered to have been expended in the following order: the Division shall oonflider the Division oategorioal funds to be expended under tho following criteria: fi) For area program op>oratod oori'ioos! (1) (A) special grants from non-divisional sources that are for reimbursement of the same expendi-tures as those for which divisional categorical funds are appropriated (examples are grants from R.J. Reynolds , the Department of Public Instruction or Division of Youth Services - Community-Based Alternative Funds); (2) (B) block grant funds federal funds from the Division; and (3) (G) state oategorioal funds from the Division. Revenue from non-divisional sources and block grant funds shall be deducted from total cost center expenditures for the purpose of determin-ing the net cost upon which the state oategorioal share is based. Client-earned income, such as payments received from patients or third parties (insurance, Medicare, Medicaid), which is received but not expended shall be retained by the area program, or tho contract program and bo UBod to further tho objoctivoa of tho logisla tion establishing the state oategorioal funding. When olient earned income rooults in on area program's fund balanoo being in oxooas of 15 percent of its annual—operating budget.—tb© amount in exoeso of 15 percent shall be handled in aooordanoo with the Division's rule on fund balances, Rule .1125 of this Subchapter. (3) For contracted programs: (A) The area program shall eotablish on expendi ture and fund balance policy. (B) For contracted sori'icos, each contract shall detail how tho oxpondituro and fund balanco policy will apply to the contracted oer<'ice. (€) If the area program contracts with a provider that also provides non aroa program oontrao tual seri'iooQ, tho contracted provider shall bo required to identify the fund balanoe for the area program contracted service only. (b) Expenditures for Social Services Block Grant total cost programs shall continue to bo budgeted and expended in aooordanoe with applioable Title XX matohing formula and eUgibilit)' criteria. Settlement of Willie M. and TTiomas S^ funds shall be in accordance with Rules .1 136 and .1 148 of this Section, respectively. 1439 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES nftof apooittl granto from non divioional oouikmw bo long aa theoe funds do not supplant local or state funds.—For the purpose of determining whether blook grant fundo ore boing uflod to supplant looal of state funds within a ourfont yoof, the prior year oxpondituro data shall bo used.—All rovonuos retailting from the blook grant funded projoot shall bo uood by the service whioh produced the revenue.—If existing 9or>'ico8 cannot bo oxpandod or now sor^'icos started, tho rovonuos shall bo used to roduoo the amount of block grant. Statutory Authority G.S. 122C-112; 122C-147. (o) State and Social Sor^'icoo Blook Grant adult develop mental activit)' program funding ohall, unleoo a total coot method of roimburoomont is authoriEed by tho Division, be baaod upon a unit ooot rato determined by ooot studies conducted by division staff.—Tho roimburoomont rato shall be booed upon actual net cost (total ooot less other oourcea of support) or tho otatewido maximum rate, whichever is (d) State subsidy payments for dovolopmontal disabilitios da)' pare and developmental dioabilities community residen tial oen'ioo shall continue to be reimbursed on a statewide (o) Block grant fundo shall bo the first dollar expended .1015 FUND BALANCE: COMPUTATION FOR AREA PROGRAMS (a) In order for the Division to have input into the actions regarding fund balances in area programs, the following shall take place after the certified public accountant's audit report is rendered and the tentative settlement report prepared: (1) The fund balance set forth within the annual audit of area programs shall be verified by the Division. (2) Since single county area programs are considered a department of the county for budgetary and financial reporting, separate fund balances for the single county area programs are not required. In order to assure that single county area programs are in compliance with the G.S. 122C-146 which states that fees received for services shall not reduce or replace the budgeted commitment of local tax revenue, the Division shall review the utilization of county general funds and the disposition of fees received for service each year. (3) To determine the unrestricted fund balance for a multi-county area program or single county area program which maintains a separate fund balance and the percent that it represents to the operating budget, the Division shall use the following format: Current Assets Per Audit Report Less: Current Liabilities Per Audit Report Fund Balance Less: Reserve for Encumbrances Reserve for Patients Accounts Receivable Less: Allowance for Doubtful Accounts Patient Accounts Receivable Reserve for Accounts Receivable from Governmental Entities Reserve for Inventory Reserve for DWI Fees Reserve for Drug Education School Fees Reserve for Restricted Donations Fund Balance Restriction Previously Approved by DMH/DD/SAS Willie "M" Thomas S^ Other(List) $ L 1 %. i 1 i £ i i 1 L i L i i 1 i i i 1 L i £ i i 1 Unrestricted Fund Balance Currently approved budget including expansion Percent Unrestricted Fund Balance to Current Annual Budget percent £4} If the unrestricted fund balance is not in excess of 15 percent of the current annual budget, no action is to take place. (5) If the unrestricted fund balance is over 15 percent of the current annual budget, the Division shall recoup in an amount equal to the fund balance in excess of J_5 percent in accordance with Tentative Settlement Report procedures per APSM 75-1. Section 4.3. The area program may request permission from the Division Director to restrict fund balance in excess of the 15 percent limitation for specific purposes. 10:15 NORTH CAROLINA REGISTER November 1, 1995 1440 PROPOSED RULES (h) The amount of reduction of financial support by the division to area programs as referenced in Subparagraph (a'XS) of this Rule may be decreased and/or delayed if there are extenuating circumstances which, in the opinion of the Division Director, warrant relaxation of this policy. Any action taken in regard to this Paragraph shall be documented in writing. Statutory Authoritx G.S. 122C-1 12(a)(6): 122C-144; 122C-146; 122C-147; 143B-10; 159-8. .1016 DISPOSITION OF EQUIPMENT - NON UCR (a) Equipment costing five thousand dollars ($5.000) or more purchased with non-UCR Division funds by an area program or contract provider shall be used for Division funded client services. Except for Willie M and Thomas S^ funded purchases, equipment purchased with Division funds may be transferred to other Division funded ser.'ices if no longer needed by the original service. Willie M and Thomas S^ purchased equipment shall be used only for Willie M or Thomas S^ clients or disposed of in accordance with Rule . 1 136 or . 1 148 of this Subchapter. (b) Except as stated in Paragraph (c) of this Rule, should transfer of equipment to Division funded services not be possible, the Division shall be contacted by the area pro-gram or through the area program for a contract provider for disposition instructions. The Division will recover the Division's share of the fair market value. The Division's share will be established by the following methods in order of preference. ( 1 ) Through inventory records which establish the percent of funding for the equipment. (2) The Division's percent of participation for the area program for the year of purchase. (3) Tlie Division's percent of participation for the area program for the current year. (c) Equipment which is fully depreciated and no longer has any useful value may be disposed of in accordance with area program policy. (d) Tlie area program will have a written procedure stating the equipment disposition policy for contract provid-ers and include or reference this provision in aH contracts between the area program and the contract provider. Statutory Authority G.S. 122C-147. .1017 START UP FUNDING (a) The Division may provide funding outside of UCR for initial purchases of equipment, supplies and operational expenditures for the establishment of a program, ser\'ice or facility. (b) Requests for start up shall be made by the area program, or through the area program in the case of a contract provider, in whose catchment area the new pro-gram, service or facility is being established. Requests shall be made in writing to the Division Director or designee and shall include a line item budget and justification. Requests may include expenses for normal operation such as staff, utilities and rent but such request may not exceed 60 days without specific written authorization. Approvals will be granted based on availability of funds and merit of request. Statutory Authority G.S. 122C-147. .1018 AREA AUTHORFTY FINANCIAL FAILURE DEFINED (a) An area authority is in imminent danger of failing financially if the Division determines at any time that one or more of the following conditions are met: (1) The projected annual expenditures of the area authority exceed the sum of the projected annual revenues and fund balance of the authority and the governing board of the authority has not demonstrated an ability or willingness to take appropriate action to correct the imbalance: or (2) The area authority has not complied with the reporting requirements of G.S. 122C-124. as set forth in the annual Memorandum of Agreement between the Division and the area authority. fb) An area authority is in imminent danger of failing to provide direct service to clients if it is in imminent danger of failing financially as defined in this Rule. Statutory Authority G.S. 122C-125. SECTION .1100 - STATE AND FEDERAL FUNDS ADMINISTERED .1101 METHOD OF PAYMENT (a) Grontfl deooribed in thio Section shall bo made for tho ficool year. (fe) An advance of 1/12 of tho total annual allocation of grants shall be made to tho area program at tho beginning of tho fiooal year.—Advanoemento of more than 1/12 may bo made if jiuitifi ed and authorized by the Divioion.—Applioa tions for advonoomonts of moro than 1/12 shall bo made in writing. (e) Funding oubsoquent to tho advonoement shall bo mado on a monthly or quarterly basis- Payment will be based on earnings, monthly advancement or other basis as authorized by the IDivision and stated in the Memorandum of Agreement. Statutory Authority G.S. 143B-10. .1102 REQUEST FOR FUNDS A monthly or quarterly request for funds administered by the Division and paid on a basis other than unit cost earn-ings and alf<Midy ollocatod to tho aroa program and doooribod in this Section shall be on a standard form format available from the fiscal services section of the Division. Such standard forms shall roquiro inforrration on typo of payment requested (whether advance or on a roimburoomcnt basis). 1441 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES the baoia of tho roport (wbothor cash or nooruod oxpondi turoo), tho grantee idontifying number, the month oovered, name of grantee organization, tho name of the payee if different from grontoo, computation of tho amount ro quoBtod, tho annual budget amount and tho name and signature of tho authorized official submitting tho requeot. Request shall be submitted to the Fiscal Office as directed by the Division Director. Statutory Authority G.S. J 43B-10. .1103 AREA MATCHING FUNDS (a) Eligibility'. Tho Division shall mako available to aroa progromo area matching funds appropriated to the Division under tho authorization of G.S. 122C 1'19. To be eligible for such fiinda an area program shall moot tho roquiromonts of tho Btondiu-ds in 10 NCAC 1 8M regarding foquirod sorviooo and shall have an approved annual plan. (b) Match Basis.—Area matching funds shall be granted to aroa programs on a matching basis.—Tho amount of tho match shall bo as dotorminod by tho Division's abilit)' to fund formula for each program, but shall bo no less than one for one (50 poroont) or more than nine for one (90 percent) subject to available state appropriations. (c) Matching Monios.—Local monies that are eligible for matching with state monies under G.S. 122C HQ include, but are not limited to tho county and city general fund, voluntary' contributions, patient fees, insurance rocoipts. Medicare, federal and local share of Medicaid, ABC five cento on the bottle, and ABC seven percent profits.—Local monios expended for rental or purchase of office or facility space, and for renovation of buildings shall not bo eligible for matching funds.—But local monios oxfwndod for pur chase of motor vehicles when the end result would be a cost reduction or for renting equipment when such equipment is clearly more justifiably rented than purchased may be eligible for matching with aroa matching funds. (d) Application.—Application for area matching funds may be made by submitting an annual plan and budget to the appropriate regional office. (o) Allocation Among Regional Officoa.—Aroa matching funds shall be allocated annually by the Director of the Division among the regional offices. (I) — Allocation of Funds. (4) Each Regional Director at the discretion of the Division Director shall—allocate — among the eligible programs of his region the area match ing funds allocated to his region. (3) Priority for allocating fiinds will bo dotormined-each year by the Division Director in accordance with approved annual plans. Statutory Authority G.S. 122C-112; 122C-149; 143B-10. . 1 104 FUNDING GROUP HOMES FOR EMOTIONALLY DISTURBED CHILDREN («3 Pursuant to G.S. 122C 150, tho Division shall administof a program of grants to area programs to bo called funds for group homes for emotionally disturbed children. (b) Such gnmts shall bo usod to support group homos for emotionally disturbed children. (e) Funds for group homos for emotionally disturbed children shall be administered to area programs as direct grants and do not require local matching. (d) — Programs may spend funds for group homos for emotionally disturbed children for the following: ft) to rent or loaso fooilitiooi (3) fiimitufo or speciolizod equipment for residents' (3) transportation of residents; f4) other nooosoor)' of>erating expenses as approved by the Division; and (5) tho purchase, construction or alteration, im provomont or repair of a facility by the area program or a non profit board with division approval. The program shall meet the require monts of tho following! fA) The Group Homo Mortgage Payment Program. The Division may participate in the mortgage payment program in part or in total dependent upon tho availability' of state funds. (^—?%e — Group—Heme — Purchase/Construction Program. (i) The Division may participate in the down payment and lump sum purchase or con stniction of a group homo in whole or part contingent upon the availability of state fiinds. fii) Tho area progmm or non fHofit board shall secure two property appraisals for review and approval by the Division prior to purchase (i«) — If a now construction grant is requested, tho aroa program shall submit two con struotion bid contracts from tv.'o building contractors to the appropriate regional office for review and approval prior to construction bid letting. (€) — A request for initial renovation of a newly acquired—facility of five thousand dollars ($5,000) or loQO shall bo submitted to tho appropriate regional office of tho Division for approval.—Initial minor repairs to facilities of less than one thousand dollars ($1,000) shall bo approved by tho area program. (©) A request for alteration or improvement of an existing facility' in excess of five thousand dollars ($5,000) shall be forvv'arded to the Division Director's office through the appro priate regional office of the Division for ap proval. ^—Each request aa outlined in (d)(5)(B) and (D) of this Rulo shall bo accompanied by a narra tive that explains the need for the purchase. 10:15 NORTH CAROLINA REGISTER November 1, 1995 1442 PROPOSED RULES construotion. altomtion, improvomont or repair of tho facility and a oopy of the sobematio drawings and spooifioationo.—If approved by the Division of Mental Health, Montal Rotar dation and Subotanoo Abuso Sorviooa, thoeo dmvvingD and opooifioationD oholl be forvi.'arded to tho Division of Facility Sers'iooo for roviow and approval. (F) — If tho group homo is operated by a non profit board, the area program shall sign a legally binding oontraot with the private non profit agency for either tho mortgage paymonta to bo mndo or the purchase or construction program as indicated in (A) and (B) of (d)(5) of this Rule .—A oopy of the appropriate oontraot shall bo obtained from the controller's office of tho central offico of tho Division. {&)—If a facility owned by an area program or its private non profit contract agency wao pur chased.—altered,—improved,—or rehabilitated using division fiinds and lator ccosos to bo used in tho delivery of oeri'ioes to clients by the area program or its private non profit oontraot agency, tho facility shall bo sold at tho current fair market value as determined by tv.'o inde pendent appraioolo aooeptablo to the Division. Tho Division shall be reimbursed a pro rata share of the proceeds of the sale based on tho percent of contribution made by the Division in tho purohooe , alternation, improvement or rehabilitation.—The area program shall main tain records—on a oontinuouo basis vi'hioh rofloct tho amount of contribution for pur chase , alteration, improvement, or rehabilita tion by the Division, area program or other funding entity. (e) — Fund Balance. (i^ The Division may allow group homos for omo tionally disturbed children to maintain a fund balance of no more than—15 percent of the current annual budget for tho group homo. (3) The 15 percent fund balance shall be generated entirely by non state funds. (^) The Division may docroaoo state appropriation to a group homo, thereby necessitating tho group home to utilize its fund balance, if the state appropriation is required in order to continue operations at another home. (43 The 15 percent fund balance allowed shall bo in addition to the amount the Division would allow to remain in the fund balance due to restricted donations. {&^ Except for tho roatricted donations and tho 15 percent fund balance , funds for group homes for emotionally disturbed children shall be expended (6) An allowance for a fund balance for group homos that oro opwratod by on area program is made in Rule .1125 of thio Sootioni (f) To apply for funds for group homos for emotionally disturbed children, an annual plan and budget for such funds shall bo included in tho appropriato area program's total annual plan and budget package when it io submitted to tho appropriate regional offioe of the Division. fg) Funds for group homes for emotionally diaturbod childron shall bo allocated among tho regions of tho Division by the Division Director. (h) Boood on the appro'i 'ed annual plan and budget roquoot submitted and availability of funds , allocations of funds for group homos for emotionally disturbed childron to aroa progrtmifl within each region shall be made by the Division Director or his designee- Statutory Authority G.S. 122C-1 12(a)(6); 122C-131; 122C-147; 122C-150; 143B-10. .1105 FUNDING EARLY INTERVENTION FOR THE EMOTIONALLY DISTURBED {tt)—In furtherance of G.S. 122C 150 tho Division shall maintain a program of granto to programs for tho establish mont of local programs of consultation, training, diagnosis, and trcatmont of emotionally disturbed childron, ages birth to seven years and to th e familieo of suoh ohildron.—Tbe focus of thooo programs shall be: (4^ to improve the quality of child care environ monta through tho training of day core workers, nursery school teachers,—parents, and others involved in child care ; (3) to identify', through sorooning and diagnosis, those children with emotional and other develop mental problems; and (3) to provide remedial programs either through consultation or through spocializod thompoutic proschool programs to those childron and their familieo identifi ed ao being in nood. (fe) Funds for early intervention for the emotionally disturbed shall bo administered to area programs as direct grants and shall require no local matching. (e) Funds for the early intep. 'ention for tho emotionally disturbed may be utilized for repairs and maintenonoo of faciUtiofl which roprosont normal upkeep and do not materi-ally increoao the value of tho facility or extend its useful (4) To apply for funds for early intepi'ontion for the emotionally disturbed on annual plan and budget for such funds shall bo included in the appropriate oroa program's total annual plan and budget package when it is submitted to the regional office of the Division. (e) — Funds for early intervention for tho emotionally disturbed shall bo ollooatod by tho Diroctor of tho Division among the regional offices. (Q — Baaed on the annual plan and budget submitted and availabihty of funds, allocation of funds fof early intorvon tion for tho emotionally disturbed to area programs within 1443 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES oaoh rogion ohall bo mado by the Rogional Diroctor with the oonourronoo of the Divioion Dirootor. Statutory Authority G.S. 122C-112; 122C-150; 143B-10. .1107 COMMUNITY SUBSTANCE ABUSE FUNDS (a) The Divioion ohall adminiotor a program of granto to area programa to bo called Communit)' Substtinco Abuoo Funda.—Those funds shall bo adminiatorod as direct granto not requiring local matobT (b) — Programc operated by an area program or contract programs of the area progmm arc eligible for funding of the following oxpondituroo: fi) otafFmg; (3)- travel; (5) aupplieo; f4) administrative and program equipment; (5) rent or leooe of a residential facility; (j^ other neoeooar)' program noodo ao approved by the Division; and f?) repairs and maintenance—of facilities which roproQont normal upkeep and do not materially increase the value of the facility or extend its useful life. (c) Community' Substance Abuse Funds may bo used for the purchoDO, construction or alteration, improvement or repair of a residential facility' by the area program or a nonprofit board under contract with the area program with division approval.—The program shall meet the following requirements: (4^ The Residential—Faoilit)'—Mortgage — Payment Program.—The Division may participate in the mortgage payment program in port or total oontingont upon the availability' of state fundoj (3) The Residential Facility Purchase/Construction Program. (A) — The Division may participate—in the down payment and lump sum purchase or oonotruo tion of a residential facilit>' in whol e or part contingent upon the availability of state funds . ^S)—The area program or nonprofit board shall secure two property appraioolo for review and approval by the Divioion prior to purohooe. ^G)—If a now construction grant is requested, the area program shall submit two construction bid contracts from t>vo building contractors to the appropriate regional office for review and approval prior to construction bid letting. (3) A request for initial renovation of a newly acquired faoihty of five thousand dollars ($5000) or l ess shall be submitted to the appropriate regional office of the Division for approval. Initial minor repairs to facilitios of loss than one thousand dollars ($1000) ohall be approved by the area program. (4) A request for alteration or improvement of an existing facility—in oxcoss of five thousand doUaro ($5000) shall bo forwardod to the Divi oion Director's office through the appropriate rogional office of the Division for approval. (5) A requoot for alteration or improvemopt of an existing facility of five thousand dollars ($5,000) or loss shall be submitted to the appropriate regional office for opproval. (6) Each request as outlined in (o) (2) and (4) of thi s Rule shall be accompanied by a narrative that explains tho nood for the purohaoo, oonDtruotiont alteration, improvement or repair of the facility and a copy of tho schematic—drawings and spooifioations.—If approved by tho Division of Mental Health, Mental Retardation and Sub otanoo Abuse Ser<'ioes,—these dravi'ings and gpecifioationfl shall bo forv^'arded to tho Divioion of Facility Sor.'ioo8 for review and approval. (p^ If the residential facility is operated by a non profit board, the aroa program shall sign a legally binding contract with the private non profit agency for either tho mortgage payments to bo made or the purohooe/conotruotion program ao indicated in (c) and (1) and (2) of this Rule. A copy of tho appropriate contract shall bo obtained from tho Fiscal Services Branch of tho central office of tho Division. (8) If a facility owned by an area program or its private nonprofit contract agency was purchaood, altered, improved or rehabilitated using division fiindo and later coasea to be used in the deliver)' of oor>'icoo to cliento by the area program or its private nonprofit contract agonoy, the facilit)' shall bo sold at tho current fair market value as determined by two independent appraioolo ao ceptable to the Divioion. The Divioion shall bo reimbursed a pro rata share of tho proooods of the sole booed on tho p>orcont of contribution made by the Division in the purohooe , alteration, improvement or rehabilitation.—If an area pro gram or its oontroot progrom wishoo to retain o facility that was purchased, altered, improved or rehabilitated uoing fundo for Communit)' Sub-otanoe Abuse Fundot the aroa program or its oontmot program shall pay to the Division a pro rata shore of the current fair market value of the facility as determined by two independent op proisalo oooeptablo to the Division booed on contribution mode by tho Division in the pur choflo oltorotion, improvement or rehabilitotion of the focilit)'. This provision may be waived by the Divioion Director Ufwn Vi'ritten request of tho progrom. Tho area program shall mointoift records on o continuous bosis which reflect tho amount of contribution for purohooe , olterotion, improvement or rohobilitation by the Divioion, area program or other funding entity. (d^ — Fund Balance.—Tho Divi sion may allow area pro 10:15 NORTH CAROLINA REGISTER November 1, 1995 1444 PROPOSED RULES grama or contmct progmms to tnaintain a fund balonco of no more than—15 poroent of the current annual budget in aooordanoo with Rule .1125 of thio Sootion. (^—For an area program to apply for community' sub stanoo abuse funds, an armuxil plan and budget for auoh fundo shall be inoludod in tho appropriate oroa program's total annual plan and budget package when it is oubmJtted to the appropriate regional office of the Division. {4)—Based on tho annual plan and budget submittod and availabiUt>' of these funds, allocationo shall be made yearly among area programii by the Director of the Division or his designee. Statutory Authority G.S. 122C-112; 122C-147; 143B-10. .1110 SOUTH CENTRAL REGIONAL ALCOHOLISM PROGRAM FUNDS (a) In furthoranco of tho authorization of G.S. 122C 1 8 1, adopted pursuant to G.S. 150B l1(o). th e Division shall administer a program of grants to bo known as south central regional alcoholism program funds. (b) South central regional alcoholism program fundo shall bo made a'.'ailable to the south central region by tho Division for alcohol programs in area programs to help eomponsato for that region's not having on alcoholic rehabilitation cente r.—These fundi; shall be used to supplement the existing alcoholism programo and to provide oood money svhere an alcohol program does not exist. (c) South central regional alcoholism program funds shall bo administered to area programs oo direct gronto not requiring local matching. (d) South central regional alcoholism program funds may bo utilized for repairs and maintenance of facilities which represent norrml upkeep and do not materially inoreaoe the ' alue of the faoilit)' or extend itc U£ieful life .—If approved on an individual basis, purchasos of equipment as well as payment of minor renovation expenses shall be allowable uses of south central regional alcoholism program funds. fe^ To apply—for south central—regional—alcoholism program funds, an annual plan and budget for such funds shall be included in the appropriate area program's total- annual plan and budget package when it is submitted to the regional office of th e Division. ff) — Based on tho armual plan and budget submittod and availability' of funds, allocation of south central regional alcoholism program funds to area programs is made by the south central R.egional Director with th e oonourrenoe of the Division Director. Statutory Authority G.S. 122C-112; 122C-181; 143B-10. .1111 DRUG ABUSE NLVTCHING FUNDS (a) Under G.S. 122C 1 47 the Division shall administer a program of grants to area programc to provide funds for sepi'ioes relative to the treatment and prevention of drug abuse. (b) Drug abuse matching monies shall be administered to area programs on a match basis.—Tho match ratio for each area program shall be in oooordonoe with Rule .1103(b) of this Sootion. (c) Local monies that are oligiblo for matching with state drug abuse matching funda shall include, but shall not bo Limited to, the oount)' and oity gonorol fundo, oontributiono, patient and drug fooo, and umuranoe and Mediooid roooipto. (d) Subject to tbo availabilit>' of state drug abuse nmtohing furtdfl tho E>ivi3ion Diroctof of hia dooignoo may approve tho use of these fundo to provide treatment serviooo to inoaroor at e d cli ents provided that no more than 25 percent of tho clients boing served by tho program may bo incarcerated. iMthough incarcerated, tho following olionto ore excluded from tho 25 percent limitation: (43 oliento who have boon admitted to treatment and are serving on tho first 30 days of their son tence; (3) clients who havo 60 days remaining to oen^e prior to rel eaoe from inoaroemtion; and (^) clionts incarcoratod in local jails and juvooilo detention facilitioo. (e) — Local expenditures for repairs and maintononoo of faoUitiee which represent normal upkeep and do not materi ally inorooflo tbo value of tbo facilit)' of extend its uaoful life shall bo oligiblo for inatching with drug abuse matcMBg funds.—Approval of expenditures for rent and equipment rtay be made on an indi'i'iduol baoie by tho Division Dirootor or his designee. (0 Vi^on costs of personnel are shared by more than ono drug grant, a time distribution record shall bo maintainod for each staff member performing ser^'ioos charged to separate grants. (g) To apply for drug abuao matching funda on application for such fundo shall be submitted by tho area program simultaneously to the appropriate Regional Director and to tho Doput)' Director for substance abuso.—j\n annual plan and budget for such funda shall also bo included in tho area program's total annual plan and budge t package. (h) The Regional Directors shall recommend to the Doput)' E)iroctor for substance abuse the allocation of drug abuse matching funds to oligiblo area programs within theif regions. ft) Based on the annual plan and budget submittod and availability of fimds, allocation of drug abuse funds to area programs shall bo mode by tbo Division Director or bis designee . Statutory Authority G.S. 122C-112; 122C-113; 122C-147; 122C-150; 143B-10. .1114 EARLY INTERVENTION - STATE AND FEDERAL FUNDS (a) Tbo Division shall administer a program of grants to area programs to be oall ed fundo for early intepi'ontion for children with mental retardation or other developmental disabilities. (b) Such gronta shidl bo uaod to provide for tho establish 1445 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES mont of local multidi8ciplinar>' toamo for tho proviaion of program oonoultation, family support and family oontered training for preoohool ohildron, (defined as those who have not roachod thoir fifth birthday on or before October 15 of tho ochool year) within tho following guideliDoo: fi) Children oor^'ed shall bo mentally retarded, dovelopmontoll)' di sabl ed, developmentally delayed or have at)'pical dovolopmont or bo at risk for one of those conditions. (3^ Priorit)' shall be given to those children under three years of age. (c) To apply for funds for early intori'ontion, an annufll plan and budget for such funds shall bo included in the appropriate aroa program's total armual plan and budget package when it is submitted to the regional offioe of the Division. (d) Funds for early intori'ontion shall bo allocated among the regions of the Division by the Division Director. (o) Booed on the approved annual plan and budget request submitted and availability of funds, allooation of funds for oarly intorvontion to area programs shall bo approved by tho Division Director or hio designee. (a) The Division shall administer a program of grants to area programs for early intervention services for children and their families, in accordance with Part H of the Individ-uals with Disabilities Education Act (IDEA). (b) Funds may be used for any periodic or day/night service that is identified as needed in the Individualized Family Service Plan (fFSP) within the following guidelines: m children served shall be those with developmen-tal delays, atypical desfelopment or those at risk for these conditions as defined in JO NCAC 14K .0103. (21 with the federal early intervention funds, chil-dren served shall be from birth through two years of age and their families. (3) with state early intervention funds, children served shall be from birth through two years of age except that: (A) services may continue until the start of the next school year for children who turn three during the course of the school year, and (B) three and four year olds may be served during the summer and during the school year in before/after school programs. (4) funds shall be used to supplement and increase services for these children and may not be used to supplant other federal, other state or local funds. Statutory Authority G.S. 122C-1 12(a)(6); 122C-131; 122C-150; U.S.C. 1471 Part H IDEA. .1115 FUNDING GROUP HOMES FOR DEVELOPMENTALLY DISABLED ADULTS fft) Pursuant to G.S. 122C 1 4 1, tho Division shall administer a program of grants to area progromo to bo ottllod fimdn for group homes for developmentally disabled ttdulto. (b) Suob gronta shall be uood to support group homoa for dovolopmontally disabled adults. (e) — Adults in whose behalf funds are administered to programs shall be^ ft) 1 8 years of ago and older; and (3) rosidonta of North Carolina. (d) To bo eligible for funds for group homos for develop mentally disabled adults,—the oommunit)' shall provide rosidonto with a total array of sorvioos and programs to moot thoir various needs and lovol s of capability and not just 24 hour oaro. These programs shall promote a oomplete life for these individuals in a oommunit)' setting. (o) Funds for group homos for dovolopmontally disabled adults shall bo administorod to area programs as diroot grants and do not require local matching. (f)—Programs may spend funds for group homes for dovolopmontally disabled adults for the following ! (+) renting or loosing facilities ; (3) furniture or spooialized equipment for residents; (5) transportation of residents; (4) other nocosoory operating oxponsos as approved by tho Division; and (5) the purchase, oonotruotion or alteration,—im-provement or repair of a facility by the area program or a non profit board with division approval with tho exception of programs partici pating in federal Department of Housing and Urban Development (HUD) Section 202 projeots which shall follow tho requirements spocifiod in (f)(6) of this Rulo. Tho program shall moot tho following requirements: fA) The Group Home Mortgage Poyment Program. Tho Division may participate in tho mortgage payment program contingent upon tho avail ability of State funds. (B)—Tbe — Group—HeiHe — PurohaBe/Construotion Program. (i) The Division may partic ipate in tho down payment or lump sum purchase or oon struction of a group home in whole or part contingent upon tho availability of State funds. (ii) The area program or non profit board shall secure two property appraisals for review and approval by tho Divi sion prior to purchase. {i«) — If a now construction grant is requested, th e area program shall submit two oon struction bid contracts from two building contractors—to tho appropriate—regional office for review and approval prior to oonstruotion bid lotting. (€) — A request for initi al renovation of a newly acquired—facilit)' of fivo thousand dollars 10:15 NORTH CAROLINA REGISTER November 1, 1995 1446 PROPOSED RULES ($5,000) or loan ohnll bo aubmittod to the appropriato regional offioo of the DiviDion for approval.—Initial minor repairs to faoilitioo of loaa than one thousand dollars ($1,000) shall bo approved by the area program. {©) A request for alteration or improvement of an existing facility in oxoooo of five thousand dollars ($5,000) ahall bo fors^'ardod to the Division Director's office through tho appro priate regional offioe of th e Division for ap proval. (E) — Each request as outlined in Parts (0(5)(B), (C) and (D) of this Rule shall bo aooompaniod by a narrativ e — that explains the neod—for th e purchase, oonotruotion or alteration, improve mont or repair of tho facility and a copy of the schematic—drawings and specifications. tf approved by the Division of Mental Health, Developmental—Disabilities—and — Subotxmoe Abuse Services, these drawings and specifica tions shall be forwarded to tho Division of Facility Sopi'iooo for rev iew and approval. (¥) If the group home is operated by a non profit board, tho area program shall sign a contract with the private non profit agency for either the mortgage paymenta to be made or the purchase or construction program as indicated in (A) and (B) of (0(5) of this Rul e. A copy of tho appropriate contract shall be obtained from the controller's offioe of the central offioe of the Division. fG^ If a facility' owned by an area program or its private non profit contract agency was pur chased,—altered,—improved,—or rehabilitated using division funds and later ceases to be used in tho deliver)' of services to clients, the facil ity may be sold at tho current fair market value or retained, and the area program or its private non profit contract agency shall reim burse tho Division according to tho following roquiromonts: (i) The current fair market value , acceptable to the Division, ohall bo determined by two indopondont appraisals submitted and used as guidance. (ii) Reimbursement shall be a pro rata share of the accepted value, based on the oontribu tion made by the Division in tho purchase, construction or alteration, improvement or repair of the facil i ty. (iij) — The area program shall maintain a reoord which roflocts tho amount of contribution made by tho State for purchase, construe tion or alteration, improvement or repair to the fac i lity; (6) to participate in a federal Department of Hous ing and Urban Development (HUD) Section 202 project (12 U.S. C. § 1701q) for tho purohoso, oonotruotion or alteration, improvement or repair of a group home with division approval. The program shall moot tho following roquiromonts'. (A) The area program may foquoat funds fof this project from the Division. The Division may participate in the HUD Sootion 202 projoot contingent upon the availability of State funds. (B) — Tho area program shall sign a contract with a private non profit agency to opeoify that if the group home oeaooo to bo used in the delivery of services to tho clients, the facility may bo sold at tho current fair market value or re tained, and the private non profit agency shall reimburse the Division according to the fol lowing requirements! (i) Tho current fair market valuo, acceptable to the Division, shall be determined by two independent appraisals submitted and used 08 guidance. (h) Reimbursement shall bo a pro rata shore of the accepted value , booed on the oontribu tion made by tho Division in the purchase, construction or alteration, improvomont or repair of the facility. (€) The area program shall maintain o record which refleotfl the amount of contribution mode by the State for purchase,—construction or altomtion, improvomont or repair to tho group (g) Fund Balance. (1) Tho Division may allow group homos for dovol opmontally disoblod odults to maintain a fund balance of no more than 15 percent of tho current annual budget for the group home. (2) Tho 15 percent fiind balance aholl be genorotod entirely by non State funds . ^) The Division may decrease State oppropriation to group home, thereby necessitating the group homo to utilize its fund bolonco, if tho State appropriation is required in order to continue operations at another home . f4) The 15 percent fiind balance allowed shall be in addition to the amount tho Division would oUow to remain in the fund bolonoo due to restricted donations. (5) Except for the restricted donations and the 15 percent fund bolonco, fimds for group homos for dovelopmontally d i sabled adults shall be ex pended loot. (6^ An allowance for a fund balance for group homofl that ore opwratod by an area program is made in Rule .1125 of this Section. (h) To apply for funds for group homes for developmon tally disabled adulto^ on annual plan and budget for such funds shall bo included in the appropriate oroa program's total onnuol plon and budget package when it is submitted to 1447 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES tho appropriate regional offioo of tho Divioion. (i) Fundo for group homoo for developmentally dioablod adulto shall bo allooatod among tho rogiomi of tho Divioion by tho Division Diroctor. (j) Boood on tho approved annual plan and budget roquoot submitted and availability' of fundo, allooation of fundo for group homoo for dovolopmontally dioabled adulto to area progmma within oach region shall bo mado by tho Divioion Diroctor of his deaignoo. (Ic) Tho monthly rent for oUonto reoiding in HUD fiiianoed group homeo io dotormin&d aooording to the oriteria oot forth in HUD Handbook ISSO.S, "Oocuponoy Roquiromonto of Subsidized Multi Famil>' Housing Programs" (which may bo obtained from tho Doportmont of Houoing and Urban Dovolopmont, 2306 Woot Moadowview Road, Groonoboro, H-.—G-.—24701) and horoby inoorporatod by roforonoo, including any subsoquont omondmonts and editions.—Should tho rent for thooo rooidento oxoood one hundred and fifty doUaro ($150) per month, a room and board rote higher than tho ootablisbod maximum rate, in aocordanoo with tho provisions of 10 NCAC 47A .0201, shall bo ohargod. The full rent shall be payable to tho project owner of tho home . RocponoibilitioD and formula for payment of thio amount -afa as follows! (i^ The area program or private non profit agency operating the homo ohoU pay out of ito operating budgot, the first one hundred and fift)' doUoro ($150) of the HUD determined rent and 20% of any amount that oxcooda the one hundred and fifty doUaro ($150). (2) The remaining 80% of tho amount that exceeds tho ono hundred and fifty dollars ($150) shall be paid by tho rooidont or any othor party who aooumoo rooponoibility. Statutory Authority G.S. 122C-1 12(a)(6), (11); 122C-141; 122C-147. .1116 FUISTDS FOR MENTAL RETARDATION COMPLEXES (a) — Identification. Pursuant to G.S. 122C 112 the Divioion ohall adminiotor a program of granto to Kendall Center in Greensboro and Mecklenburg Center for Human Development in Charlotte to bo called funds for mental retardation complexes. (b) Uoe of Fundo.—Such grants ohall be uoed to provide day care , reoidentiol core, and other services to mentJilly retarded children and adults. (©3 The matching requirements of funds for mentid retardation oomplexes and the typw of expenditures eligible to be supported by funds for mental retardation oomplexeo aro tho same as those for area matching funds sot forth in Rule . 1 103(b) and (c) of this Section. Statutory Authority G.S. 122C-51; 122C-112; 143B-10. .1117 GRANT-IN-AID FOR ADULT DEVELOPMENTAL ACTIVrrY PROGRAMS (tt) The Divioion shall administer a program of grants to area pwogmms to be called tho grant in aid for adult devol opmontol activity progromsr (b) — Such grant in aid fundo ohall bo uood to oupport clients who are: (i) substantially—mentally—retarded—er—severely phyoioally dioablod persons as doFmed in 10 NCAC HK .0103 except that clients with a primary diagnosis—of othor than oubotantial mental retardation of sovoro phyoioal dioabilit)' may bo eligible fof funding provided! fA) they have been in an i\DAP continuously from tt date prior to January 1, 1975 and ore our rently receiving j\DAP grant in aid; and (B) — dint all othor ADAP standtirds and regulations Buoh ao annual re evaluation and referral to the Divioion of Vocational Rehabilitation Services shall apply equally to this client population; or (3) othorv.'i6e substantially dovolopmontally disabled which means those individuals functioning at either Level I or Level 11 as defined in "Pioneer Funding System Qpomtions Manual, Volume HI, Level of EUgibilit)', Section 4 , Child and Adult Developmental Disability", adopted pursuant to G.S. 150B l'l(c); (3^ 16 years of ago and older; (4) residents of North Carolina; and (S) eligible for ADAP grant in aid regordleoo of financial resouroeo with the exception of a client whose work earnings exceed one half tho federal statutory' minimum wage ovof a consecutive 90 day period.—With prior approval of the appropriate area director or designee , oliento who are participating in a gupportod employment program authorized by tho Division may have earnings in excess of one half the minimam wage.—Eligibility' for olionto in non supported employment settings whoso earnings have ox ceedod over one half tho minimum wage for ovor 90 oonoooutivo days may be extended for up to one calendar year if supported employment options aro not available locally and the client ia ineUgible for other sor>'ice8 from the Division of Vocational Rehabilitation,—or if the client's social, behavioral or vocational skill deficits preclude participation in supported employment options and results in ineligibility for othor vocational rehabilitation Der<'ioeo. The eligibility' extension shall occur through the existing client rocortification process carried out by tho dosig natod area program qualified dci'elopmontal dioabllitioo profoooionol (QDDP) as roferenood in 10 NCAC 18M .0800. Requests for the exten sion shall be baaed on a joint case review in volving a roprosontativo of tho involved j\Di\P, 10:15 NORTH CAROLINA REGISTER November 1, 1995 1448 PROPOSED RULES tho local VR unit and the aroo program.—The roquoot ohall identif^' th e opooiFio skill de fioito prooluding eligibilit>' for supported omploymont or other vocational rehabilitation DCPt'iooa and include plana for thooo deficito.—Tho oortiFication oKtonoion may be reapplied for a maximum of two timeo.—The same orite ria and prooedureo shall bo followed in each inatonco of roapplica tion as arc required for the initial extension. (o) Grant in aid for adult dovolopmontal activity programs shall be adminiotcrod to area programo up to a otandard rate per month, as approved by the General—Assembly or Division Director, or both, except programs may receive federal grant in aid funds on a total oost baoio with th e Division Director' s approval in aooordanoe with Section 26 of tho "Area Program Budgeting and Procedures Manual" (division publicat i on APSM 75 1) as published June 27, 198'1. which is adopted by reference .—Copies of Section 36 of the "Area Program Budgeting and Procedures Manual" may bo insf>octed at the Raleigh office of tho Division or copies may bo obtained from the Publications Office of the Division at a charge which covers printing and postage. (d) Funding of now adult developmental aotivit)' programs shall bo limited to the areas (count)' or community or both) specified in division publication j\fSR 120 1, "Development of N ew—Adult—Developmental—Activity—Programs. " —as published July 1, 198 1. which is adopted by reference . Copies of this publication may bo inspected or obtained as specified in (c) of this Rule . (o) To apply for ADj'VP grant in aid funds on onntial plan and budget for such fundi) shall be included in the appropri ate area program's total annual plan and budget package when it is submitted to the appropriate regional office of tho Division. (f) Approval of release of ADAP grant in aid funds shall bo made by the Division Director or his designee.—Theso adoptions by—reference—afe — in accordance—with—G.S. 150B M(c). Statutory Authority G. S. 122C-141. 122C-1 12(a)(6); 122C-131; .1118 SPECIALIZED COMMUNITY-RESIDENTIAL CARE SUBSIDY (q) Tho Division shall administer a program of grants to area programs to be called specialized community' resid ential care. (b) These funda shall be tised to provide for the purchase of residential services for moderately, severely, and pro foundly re tarded cli ents in specialized oommunity residential programfl. (c) Sp>ocialized community residential core subsidy shall be administered to area programs up to a stxindard rate per month 06 approved by the General Assembly. Division Director or both. {4)—Clients in whose boholf funds ore administered to programs shall bo: (4^ moderately, sovoroly, or profoundly retarded including infants at high risk for mental rotarda tion, for whom a diagnootio label of mental retardation is inappropriate prior to three years of ogo, OS cortified by a lioonsod phyoioian, and for whom a less restrictive program io not available; (3) botwoon tho ages of birth and 21; and {¥) residents of North Carolina, except for clients receiving residential oare subsidy who are other wise eligible and whoso residency status ohongoo to non state residency after admission.—Clients with such a change in residency status may bo included for funding for up to one year provided a plan for transfer of tho oliont to tho now residency site or for oltomativo funding is estab lished and pursued and this plan is approved and reviewed qtmrterly by the Regional Director and area director or their respective dosigneoo. CUonts not mooting the provisions of (d)(1) and (2) of this Rule may receive funding upon special approval of tho Division Director. {p)—To apply for sp>ecializod oommunit)' resid ential ooro subsidy funds, on annual plan and budget for such funds shall be included in the appropriate area program's total annml plan and budget package when it is submitted to tho appropriate regional office of the Division. ff) — Disbursement of specialized community residential caro subsidy funds shall bo mado aftor approval of tho plan and budge t by the Regional Director. Statutory Authority G.S. 122C-1 12(a)(6); 122C-131; 122C-141. .1119 MENTAL RETARDATION COMMUNITY SERVICE FUNDS {er) Pursuant to G.S. 122C 112. the Division shall administer a program of grants to be call ed mental rotarda tion community service funds.—These funds shall bo allocated to tho eastern region in the amount of at least five hundred thousand dollars ($500,000) and to other regions based upon th e availability of funds. (b) Mental retardation community service funds may bo used to support mental retardation sorvicos including, but not limited to, dovolopmontxil day caro for children and activity programs for adults. (0) Mental retardation oommunity service funds shall bo administered to area programs as direct grants requiring no local matching. (d^ — To apply for mental retardation oommunity soni'ioo funds, an annual plan and budget for such funds shall be included in the appropriate area program's total annual plan and budget package when it is submitted to the appropriate regional office of the Division. fe) Mental retardation community sep-'ioe funds may bo utilized for repairs and maintenance of facilities which roprosont normal upkeep and do not materially increase tho 1449 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES value of tho facilitj' or oxtond its useful life. (f) Fundo appropriatod for montal rotordntion oommuBky son'ioe shall bo allooated to aroa progromo of tho gppropri ato region by tho Diviaion Director or hio designee. Statutory Authority G.S. 122C-112; 122C-147; 122C-151. .1120 COMMUNITY DEMONSTRATION PROJECT FUNDS (ft^ Purouant to G.S. 122C 112, tho Divioion ohall adminiotor a program of grants to bo oalled oommuatty-demonstration project funds. (fe) — Such fiinds shall be used for tho development and domonotration of now and innovative oommunit)' oorvioes for mentally retarded poroono. (e) Community demonstration projects funds shall bo adminiotorod to aroa programs as direct grants requiring no local matohingr (d) To apply for oommunit>' demonstration proj ect fundo, an annual plan and budget for such funds shall bo included in tho appropriate area program's total annual plan and budget fKiokage whan it io submitted to the regional office of tho Division. (e) Community demonstration project funds shall bo allocated among the regions of tho Division by the Division Director or his doaignoe. ff) — Community demonstration project fundo may be utilized for repairs and maintenance of facilitioe which roprosent normal upkeep and do not materially incrooso tho value of the facility or extend its uoeful life. (g) — Based on the annual plan and budget submitted and availabilit>' of fundo, allocation of community domonotration project funds to area programs shall bo made by tho Divi sion Director or hio deoignee. Statutory Authority G.S. 122C-112; 122C-147; 122C-150; 143B-10. .1121 SOCIAL SERVICE (TITLE XX) BLOCK GRANT FUNDS (a) Tho Divioion shall administer a program of sorviooa and training from fundo provided by the United States Department of Health and Human Servioeo under the authority' of Title XX of tfto Social Socurity Act, 42 U.S.C. 1397 13 97f. (fe) Service fundo ohall be used to provide allowable oervioeo to moot opeoifio noodo of individuals who are emotionally disturbed,—mentally retarded,—or substance abusers and who have been certifiod eligible by tho appro priate area program.—Training funds ohall be uoed to provide training aotiviti eo related to th e provioion of Titl e XX fundable ser>'icoo. (e) Programs shall bo operated by the Divioion, an aroa program or through contractual arrangement with an area program. fd) Allocation of fundo to area programs shall bo on an annual basis and shall bo based on the needs of eligible clients as documented in tho aroa program' s approved annual plan of work and budget requeot. (e) Divioion staff shall provide administrative support necessary for progmm development and technical asoistaneo to insure compliance—with federal—and state laws and regulations . (f) — Reimburoement shall be made in aooordanoo with Sections 5 and 26 of tho "Area Program Budgeting and Procedures Manual" (division publication APSM 75 1), adopted pursuant to G.S. 150B 11(0). (g) Aroa progromc oball oond roimburoemont formii to the controller' s office of the Division by tho 10th day of tho month following sop.'ico. Statutory Authority G.S. 122C-147; 122C-150; 42 U.S.C. Section 1397-1397/. .1123 AREA MENTAL HEALTH CENTER CONSTRUCTION PROJECT (e) The Division ohall administer a program of direct grants from state funds to area programs for tho construe tion of oomprehenoive area programo or components of ouch programs which ohall be known ac oomprehenoive area programs construction project grants.—Before such grants can be awarded a certificate of need shall be obtained by tho grantee, (b) Such grants may be used for the following: (4^ Architect's fees for the preparation of drawings and sp>ocifioation8 for tho project; (2) Fee s for preparation of contour maps and ooil inveotigation; (3) Coots of advertioement for construction bids; f4) Construction contracts including general, plumb ing, eleotrioal, elevator, air conditioning and ventilating and any oub contract or ooporate contract relative to tho construction; (5) Items of movable equipment when approved by the Divioion; (6) Cooto of advertisement for bido for movable equipment; (^?) Tho coot of ohongo orders relating to conotruc tion or equipment when such change orders are approved by the Divioion of Faoilit)' SePi'ioeo of tho Department of Human Resources and tho Division of Mentxil Health, Montal Retardation and Subotanoe Abuse Services. (8) The cost of landooaping including related arohi tocturol service, seeding, sprigging or sodding of the site and the planting of trees and shrubs as would be normally considered a part of tho gene ral construction contract. Tho cost of landscaping recreational areas such as courts and outdoor patient areas for therapeutic effects of the environment in the mental health center may be paid from division fundo upon prior approval from tho Division of Montal Health, Montal Retardation and Substance Abuse Sor>'ioo3 and 10:15 NORTH CAROLINA REGISTER November 1, 1995 1450 PROPOSED RULES the Divioion of Facility Sorvicoo.—In ordor to obtain approval,—th o grantee must Bubmit a writton proposal fully justil^'ing the full)' juotif)' i ng tho thorapoutio effort of tho landscaping. (e) Such grants flhall not bo uood for tho following; fj^ purohaoe of site ; f2) attornoy—fooo for title ooaroh,—preparation of doodfl and other such closing costs; {¥) surveyor's foo for survey of lot for purposes of deed preparation; {4) oonotruotion or equipment not approved by the Division; (5-) landscaping in excess of that included in tho general contract or that which is inconsistent with otipulationc regarding landaoaping contained within this Rule; and (6^ stationer^', printing, secretarial services, pwstago, trave l , and othe r incid entals in conneotion with the proj ect. fd^ — Application for such finds shall bo upon a standard form which shall require the following information: f4^ name of applicant; (3) addreoD of applicant; (3) the name and typo of the proposed facility and its proposed address; (4) the type of construction whether new, on expan sion of existing facility, remodeling or other; {&j tho type of ownership of the project, whether public or private non profit; (6^ the type of operational control of the project. whethe r public or private non profit; f?3 the name, address and telephone number of tho applicant's representative; f8) the name , address, and telephone number of the project architect; ^ a statement of the need for tho facility; (4#) data on the occupancy of the proposed facility; (44^ description of programs to be conducted in the facil i ty; <4-3^ information on tho financial resources available to the facility; fl-59 th e total development cost; f44) information on whether title to the site will be vested in tho applicant, tho agency to operate the facility, or othorvi'isc; 4+5) whe the r the applicant has titl e in fee simple or a leasehold, or otherwise , and if the applicant has only a leasehold, information on tho nature of the lease ; (4^) a copy of the abstract of title prepared by on attorney; f4?) a copy of the site sur^'oy, soil investigat ion reports and land appraisals, whore applicable; fl-8) whe re applicabl e , a cert i fication from an archi teot of th e feasibility—of improving existing structures; {W) a copy of the plot plan; (30) target dates for completion of Bohomatio, prelim inar>'. and final drawings; and (34) an estimated construction budget. fe) — Such standard form application shall also require assurances of tho following: (+) that the applicant posseoooo l egal authority' to apply for and receive tho grant or loan, and to finance and construct the proposed facility; that Q rosolution, motion or similar action has boon duly adopted or passed oo an official act of tho applicant's governing board, authorialng tho filing of tho application, including all under standing and assuroncoa contained therein, and directing and authorizing the person identified as the official representativ e of the applicant to act in connection with tho application and to provide such additional information as may bo required; (3) that sufficient fiindo will be available to moot tho non state share of the costs of constructing the facility, and that sufficient funds will be avail able when construction is completed to assure e ffective—operat i on—and — maintonanoo—of tho faoilit)' for the purposes for which constructed; (5) that approval by the Div i sion of the final work ing drawings and Bpocifioat iona will be obtmned be fore the project is advertised or othorv^'iso placed on the market for bidding; that it will construct tho project, or oauoo it to bo con structod, to final completion in accordance with the application—and approved—drawings and speoifioationo; that it will submit to the Soorotar)' of Human Resources or his designee for prior approval changes that materially alter tho scope or costs of tho proj ect, use of space or funo tionol layout; that it will not enter into a oon struction contract or contracts for the project or a part thereof until tho conditions of the con struction grant or local program have boon mot; {A) that except as otherwise provided by state or local law. all contracting for construction (in eluding the purchase and installation of built in equipment) shall be on a lump sum fixed price basis, and oontraota will be awarded on the baois of competitive bidding with award of tho con tract to tho lowest responsive and responsible bidder—(The provision for exceptions baaed on state and local law will not bo invoked to give local—contractors—et—suppliers—a — pwrcentago preference over rKxi local oontrootors bidding for the same contract.—Such praotioeo are precluded by this assurance.); (5) that it will provide and maintain competent and adequate architectural engineering aupori'ision and inspection at the construction site to insure that the completed work conforms with tho approved drawings and 3p)ocifications; that it will furnish progress reports and such other informa 1451 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES ) tiop 00 tho Socrotary of Human Roeourcoo or hio dooignoo may roquire ; (6) that an oBoumnoo of oomplionoe with Title VI of tho Civil Righte Aot of 1964 applying to the facilit)' doacribod in this application was filed or is attaohod to tho applioation; ^ that it will maintain grant or loan aooounting rocordo (idontifiablo by grant or loon number), including all records relating to tho receipt and oxpondituro of otate grant or loan fundo and to tho expenditure of the non state shore of the ooot of project for throo years after the completion of tho project if an audit io conducted by or on behalf of th e Department of Human Rooouroeo within thot period, or in the cose where no oudit is performed for five yoars; oxoopt that should audit questiona arise with rospoct to tho grant or loon, the — rooordo will be mointained until all ouoh quootiono ore rooolvod (Roprooontativea of tho stoto govommont aholl hove occoos to oil roasonablo times to tho grantee's records ond to work whonovor it io in preparation or progrooo, and tho oontrootor shall provide proper fooilitieo for such occoss and inspKxi tion.); {%) that the facility' will bo operated and maintained in aooordonoe with the roquiromento of opplioa bio otate and local agenoioo for tho maintenonoe and operation of such facilitioo! (9) that tho applicant will roquire tho facility to bo dooignod to comply with the "lUuotrated Hand book to th e Handicapped Section" adopted by tho North Carolina Doportmont of Insurance in 1974 and available from tho Engineering and Building Codes Divioion of the Department of Insurance , P.O. Box 263 87, Raloigh, North Carolina 27611 at o nominal cost.—(The oppli cant shall be responsible for conducting inspoc tions to insure oompl ionoe with these speoifioa t iono by the oontrootor.); (4^ that the applicant will cause work on the project to bo oommoncod within a roasonablo time after rec eipt of notification from the Deportment of Human Reoouroee that fundo have boon ov^'ordod, ond thot tho projoct will bo prosecuted to com plotion with roaoonoblo diligonoo; and ^44) that any state funds received pursuant to a grant or loon will be used solely for defroying the dovolopmont cost of the proposed projoct. ff^ — Such standard form application shall also require asouronoes of the following: fi^ That the building will conform to all applicable roquiromonts of tho appropriate state plan and tho regulations pertaining thoroto; (3) That all portions and oeni'ioes of the entire facility for the construction of which, or in connection with which, aid is sought, will bo mode available without discrimination on oc count of oieod, and no professionally qualified person will be diooriminoted against on oooount of orood with respect to the privil ege of profeo sionol practice in tho facility; (J) That tho fooilit)' will furnish on area sors'ico ond either will fiimish below ooot or without ohorgo a reasonable volume of sori'iooo—to persons unable to pay for such oor^'ioos, or will supply on attached juotifiootion for not furnishing below cost or without charge a roasonablo volume of services to persons unable to pay therefor; (4) The facility will bo usod for tho purposes for \»'hioh it is oonotmotod for not logs than 20 years after the completion of the construction; ond (5) That the cervices to be provided by the fooility, alone or in conjunction with othof facilitioo owned or oporotod by tho applicant, will bo made ovoiloblo for o progrom providing prinoi pally for persons residing in a particular area or aroos in or noor which such focility is to bo situated, ot least tho ossonti ol olomonts of com prehenoive montal health oorviooo—ii e ., oontinu ous sepi'iceo, periodic servioes, doy/night ser vices (including at least day core son.'ices), emergency sori'icos provided 24 hours per day, ond consultation and education services ovoiloble to area ogonoieo and profeosionol personnel, (g) After award of o grant fiscol records shall bo consoli dated and mointained by the treasurer of the projoct in o central location accessible to auditors and inspectors of the Department of Human Rooourooo. (h) — Aftor oword of a gront tho nomo and address of tho treoflurer of tho projoct shall bo oubmittod to tho Division as soon as o treoourer is appointed. (i) After award of a gront records shoU bo dosignod and mointflinod to reflect the purpose for which each oxpondituro is mode. ^—After award of a grant records of the opplicont oholl reflect oil transactions between the sponsor and contractors and vondora and botwoon tho sponsor and tho Divioion. (k) After oward of o grant on aooounting system shall bo organized so oo to fooilitote auditing and preparation of reports. (i) — Aftor aword of a grant tho sponsor shall maintain a record of deposits and disburoomonto on o standard form supplied by tho Divioion. (m) After award of o grant o special bank account shall be established and maintained for tho uso of tho projoct exclusively into which the local share of costs shoU bo deposited.—State and federal funds, if any, shall also be deposited into tho account as they ore received.—Checks for all items of projoct costs shall bo drown on this account and a copy of the cancolod chocks and tho invoices for which tho checks were drown shall be filed in ohronologioal order. (n) After award of o grant, payment inopootiono shall bo mado by tho Division of facility services of tho Dcpartmont of Human Resources when approximately 10 pvorcent, 25 10:15 NORTH CAROLINA REGISTER November 1, 1995 1452 PROPOSED RULES poroont. 50 f>orcont. 75 porcont and Q5 f>orcont of tho oonotruotion and oquipmont aoquioition and inotallation io compl e t e . Grant fundo ohall be dioburood after ouoh inajxictiona lajoh that tho total amount of funds disbursed to tho project will bo that poroontago of tho total amount of fundo granted to tho project oqtal to tho peroentage of oonotruotion whioh io aotually finished.—Final payment shall bo made aftor all oonatruction is comploto and all equipment is dohvorod and on aud i t of tho projoct records is complotod. (e^ — Aftor award of a grant tho proj ect treasurer shall maintain rooordo whioh will rofloot the amount of North Carolina sales and use tax paid by each contractor and sub contractor. Such tax information shall bo required to bo supplied by th e oontraotor with each payment request. (a) When capital funds are specifically appropriated by the General Assembly, the Division shall allocate funds for area program capital projects. Such allocations shall be in accordance with the language and intent of the appropria-tion. Instructions for capital applications and payment of funds shall be issued by the division subsequent to any such specific appropriation. (h) An area program may request to use state non-UCR funds, Willie M. or Thomas S^ funds, or to transfer state operating funds outside the regular. Willie M. and Thomas S^ unit cost reimbursement systems for capital costs for itself or its non-profit contract agency, in accordance with G.S. 122C-147. In accordance with G.S. 122C-147. such requests are limited to 24-hour and day facilities, except that Willie M. funds may also be used for other necessary facilities. The following procedures shall be followed: (1) Approval for purchase, lump sum down payment or periodic payments on a real property mort-gage in the name of a private, non-profit corpo-ration, alteration, improvement or rehabilitation of real estate costing under five thousand dollars ($5.000) is delegated to the area director. (2) Approval for purchase, lump sum down payment or periodic payments on a real property mort-gage in die name of a private, non-profit corpo-ration alteration, improvement or rehabilitation of real estate costing five thousand dollars ($5,000) or over shall be based upon submission of an application by the area program to the Division Director or designee. Such application shall be in i format prescribed by the Division and may include the following: (A) name of applicant; (B) address of applicant; (C) the name and type of proposed or existing facility and its location; (D) the purpose of request, whether new construc-tion, purchase of an existing structure, alter-ation, improvement or rehabilitation of an existing facility; (E) a statement of the need for the facility or alteration, improvement or rehabilitation; (F) description of the programs conducted or to be conducted in the facility; (G) target date for project completion; £H} an estimated construction budget and projected revenue sources; (I) a statement indicating whether or not addi-tional Division funds will be required for operating costs. If this question is answered yes, the application shall indicate the estimated additional operating funds required and the proposed funding source; and (J) the name and telephone number of the area program representative designated as contact for the application; and (K) two property appraisals completed by licensed property appraisers for costs associated with the purchase of an existing building, lump sum down payments and period payments on the mortgage of real property. (3) Funds approved for capital projects under Para-graph £b} of this Rule shall be paid in the fol-lowing manner: (A) Funds approved under Subparagraph (bMV) of this Rule shall be requested by the area pro-gram using regular fund request procedures as funds are needed. (B) Funds approved under Subparagraph (bM2) of this Rule shall be requested in the following manner: (i) if funds are to be utilized for the purchase of a facility, the necessary funds may be requested within 30 days from when they are needed via a written request from the Area Director to the Division Director or designee. The request shall specify the amount of funds needed and the projected closing date of the purchase, (ii) if funds are to be utilized for the construc-tion of a new facility or renovation, reha-bilitation or alteration of an existing facil-ity, funds will be disbursed based upon written requests from the Area Director to the Division Director or designee certify-ing project completion at the following intervals: 10%. 25%. 50%. 75% and 100%. Upon receipt of such billings, the Division shall issue payment consistent with the percentage completed. (4) All aspects of any capital project shall be com-pleted in accordance with all applicable federal. State and local regulations. Such compliance shall include, but not be limited to, G.S. 159 requirements. Division of Facility Services licensure regulations, local building ordinances, etc. (5) The area program shall maintain a perpetual inventory of all facilities purchased, constructed, altered, renovated or rehabilitation in accordance 1453 NORTH CAROLINA REGISTER November 1, 1995 10:15 PROPOSED RULES m- ) Current Asoeto Por Audit Report Loas!—Liabilitios Por Audit Rop>ort Fund Balanco Leoo: Reoers'e for Enoumbranoeo with this Rule. This inventory shall document the history cost of the facility plus subsequent improyements and the percentage of Diyjsion participation in the total cost. (6) Should the facility cease to be used for the purpose of serving clients of the Djyision. or, more specifically for the purpose of serving Willie M. or Thomas S^ clients if the purchase, construction, rehabilitation, alteration or im-provement was funded from those specific funding sources, the Division shall be contacted immediately for disposition instructions. If the Division so directs, the facility shall be sold at the current fair market value in accordance with G.S. 153A-176 and G.S. 160A-266. After the sale, the Division shall be reimbursed the Rosorvo for Inventory Division's pro-rata share of the proceeds from the sale based on the percent of contribution made by the Division for die purchase, construc-tion, alteration, improvement or rehabilitation of the sold facility. If an area program or its contract provider wishes to maintain ownership of a facility that was constructed, purchased, altered, improved or rehabilitated using Division funds, the area program or non-profit contract provider may, if authorized b^ the Division, pay to the Division the Division's pro-rata share of the current fair market value of the facility as determined by two independent appraisals ac-ceptable to the Division. rondorod. To dotormino the unrootriotod fund balonoe and the percent that it roproeonto to the operating budget, the Divioion oholl uoo the following formnt! -f- Reserve for Patiento Aooounto Receivable LoflS! Allowonco for Doubtful Accounts Patient Accounts Receivable ( )( - Reoor^'e for Aooounto Receivable from Govommontal Entitieo (- Rofloni'o for BUT Foes Reoers'e for Drug Education School Fooo -e- Reoer^' e for Reotrioted Donations (— Fund Balance Restriction Proviouoly Approved by DMH/MR/SAS (Prior to February 1, 1986.) (- Other(Li6t) -e Unrestricted Fund Balance Annual approved budget pluo approved budget revisions as of September 30 Percent Unrestricted Fund Balance to Current i\nnual Budget percent Statutory Authority G.S. 122C-112; 122C-113. .1125 FUND BALANCE: AREA PROGRAMS/ CONTRACT PROGRAMS (a) In order for the Division to have input into the actions regarding fund balances in area programs and contract prognuno ao provided for in Rule . 101 1 of thio Subchapter, the following shall take place after the certifi ed public accountant's audit report is rendered and the tentative settlement report prepared; (4^ The fund balance set forth within the annual audit of area programo and contract programs shall bo verified by the Divioion. (3) Since single county area progroma are consid ered a department of the county for budgetary and financial reporting, separate fund balanoeo for the single county area programs are not required.—In order to assure that single county area programo are in compliance with G.S. 122C 146 which states that fees received for services shall not reduce or replace the budgeted commitment of local tax revenue, the Division shall review the utilization of county general funds and the disposition of foes received for aor^'ioo each year.—This review shall occur after the annual audit report for the county has been ^4r) If the unrestricted fund balance is not in excess of 15 percent of the current onnuiil budget, no action io to take place. (5) If the unrestricted fund balance is over 15 percent of the current annual budget, the Divi oion oholl reduce ito allocation of divioion funds in the year ouboequent to the year in which the excess occurred, (b) The amount of reduction of financial support by the divioion to area programs and contract programa ao refer enced in (a) (5) of this Rule may bo decreased and/or delayed if thoro are extenuating circumstanoos which, in the opinion of the Division Director, warrant relaxation of this policy. Any action token in regard to (b) of thio Rule shall be documented in writing. Statutory Authority G.S. 122C-1 12(a)(6); 122C-146; 122C-147; 143B-10; 159-8. 122C-144; . 1 126 FUNDING GROUP HOMES FOR MENTALLY RETARDED CHILDREN («) Pursuant to G.S.—122C 117, the Division shall adminioter a program of grants to area programs to be called funds for group bomoo for mentally retarded children. (b) Such gra
Object Description
Description
Title | North Carolina register |
Date | 1995-11-01 |
Description | Vol. 10, issue 15 (November 1, 1995) |
Publisher | Raleigh, N.C. : Office of Administrative Hearings |
Digital Characteristics-A | 164 p.; 14.46 MB |
Digital Format | application/pdf |
Pres File Name-M | pubs_serial_ncregister19951101.pdf |
Pres Local File Path-M | \Preservation_content\StatePubs\pubs_serial_ncregister\images_master |
Full Text |
NORTH CAROLINA
Volume ID, Issue 15
Pages 1428 - 1 650
NOVEMBER 1, 1995
This issue contains documents officially filed
through October 18, 1995.
Office of Administrative Hearings
Rules Division
424 North Blount Street (27601)
PO Drawer 27447
Raleigh, NC 27611-7447
(919) 733-2678
FAX (919) 733-3462
Julian Mann III, Director
James R. Scarcella Sr., Deputy Director
Molly Masich, Director of APA Services
Ruby Creech, Publications Coordinator
Teresa Kilpatrick, Editorial Assistant
Jean Shirley, Editorial Assistant
IN THIS ISSUE
I. IN ADDITION
Industrial Commission 1428
Voting Rights Act 1429-1431
II. PROPOSED RULES
Agriculture
Plant Industry 1432-1435
Environment, Health, and Natural Resources
Coastal Resources 1552 - 1565
Environmental Management 1515 - 1551
Marine Fisheries 1551 - 1552
Wildlife Resources 1565 .
Human Resources
Medical Assistance 1479-1483
Mental Health, Developmental Disabilities and
Substance Abuse Services 1435 - 1479
Social Services 1483-1489
Insurance
Actuarial Services 1514
Consumer Services 1489 - 1490
Financial Evaluation Division 1503 - 1513
Investigations Division 1490 - 1492
Property and Casualty 1492- 1502
Special Services Division 1513-1514
Licensing Boards
Electrical Contractors 1579-1583
Landscape Architects 1583 - 1584
Public Education
Elementary & Secondary 1565 - 1567
Secretary of State
Corporations Division 1567-1573
Notary Public Division 1578-1579
Securities Division 1575 - 1578
Uniform Commercial Code 1573 - 1575
m. LIST OF RULES CODIFIED 1585-1588
IV. RRC OBJECTIONS 1589-1594
V. CONTESTED CASE DECISIONS
Index to ALJ Decisions 1595-1609
Text of Selected Decisions
94 OSP 0684 1610- 1623
95 CPS 0459 1624- 1627
95 CPS 0540 1628- 1631
95 EDC 0027 1632- 1633
VI. CUMULATIVE INDEX 1635-1650
NORTH CAROLINA REGISTER
Publication Schedule
(July 1995 - November 1995)
Volume
and
Issue
Number
Issue
Date
Last Day
for Filing
Last Day
for Elec-tronic
Filing
Earliest
Date for
Public
Hearing
15 days
from no-tice
• End of
Required
Comment
Period
30 days
from
notice
I flst Day
to Submit
toRRC
** FjirUest
Effective
Date
10:7 07/03/95 06/12/95 06/19/95 07/18/95 08/02/95 08/21/95 10/01/95
10:8 07/14/95 06/22/95 06/29/95 07/31/95 08/14/95 08/21/95 10/01/95
10:9 08/01/95 07/11/95 07/18/95 08/16/95 08/31/95 09/20/95 11/01/95
10:10 08/15/95 07/25/95 08/01/95 08/30/95 09/14/95 09/20/95 11/01/95
10:11 09/01/95 08/11/95 08/18/95 09/18/95 10/02/95 10/20/95 12/01/95
10:12 09/15/95 08/24/95 08/31/95 10/02/95 10/16/95 10/20/95 12/01/95
10:13 10/02/95 09/11/95 09/18/95 10/17/95 11/01/95 11/20/95 01/01/96
10:14 10/16/95 09/25/95 10/02/95 10/31/95 11/15/95 11/20/95 01/01/96
10:15 11/01/95 10/11/95 10/18/95 11/16/95 12/01/95 12/20/95 02/01/96
10:16 11/15/95 10/24/95 10/31/95 11/30/95 12/15/95 12/20/95 02/01/96
This table is published 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 2B .0103 and the Rules of Civil Procedure, Rule 6.
* An agency must accept comments for at least 30 days after the proposed text is published or until the date of any public
hearing, whichever is longer. See G.S. 150B-21.2(f) for adoption procedures.
** The "Earliest Effective Date" is computed assuming that the agency follows the publication schedule below, that the Rules
Review Commission approves the rule at the next calendar month meeting after submission, and that RRC delivers the rule to the
Codifier of Rules five (5) business days before the 1st day of the next calendar month.
Revised 07/95
IN ADDITION
This Section contains public notices that are required to be published in the Register or have been approved by the
Codifier of Rules for publication.
PUBLIC NOTICE OF RULE-MAKING
NORTH CAROLINA INDUSTRIAL COMMISSION
NOnCE IS HEREBY GIVEN that, pursuant to the rule-making authority vested in it by N.C.G.S. § 97-26 and
§ 143-300, the North Carolina Industrial Commission will consider adopting (1) a Revised Medical Fee Schedule, (2)
Revised Rules for Rehabilitation Services, (3) Utilization Review Rules, and (4) Managed Care Rules, all under the
Workers' Compensation Act, to become effective November 30, 1995. The Commission solicits the comments of all
interested persons, firms, and organizations. Copies of all four of the above may be obtained by any interested person by
addressing a request to the address below.
Hie Commission requests written comments on all four of the above. In addition, there will be a public hearing
held on the 16th day and 17th days of November, at 10:00 a.m., in Room 2149, the Utilities Commission Hearing Room,
Dobbs Building, 430 North Salisbury Street, Raleigh, N.C., during which the Commission will hear the verbal comments
of persons scheduled to speak. Those desiring to make an oral presentation, not to exceed 15 minutes in length, should
submit a request on or before November 14, 1995. Speakers at the public hearing are encouraged to prepare a written
summary of remarks for the use of the Commission.
WRITTEN COMMENTS, REQUESTS FOR COPIES OF ANY OR Ali OF THE FOUR AND REQUESTS FOR
ORAL PRESENTATIONS SHOULD BE ADDRESSED TO COMMISSIONER THOMAS J. BOLCH AT 430 NORTH
SAUSBURY STREET, RALEIGH, NC 27611. WRITTEN COMMENTS WILL BE RECEIVED BY THE COMMISSION
UP TO AND INCLUDING NOVEMBER 30, 1995.
This 17th day of October, 1995.
J. Howard Bunn, Jr., Chairman
North Carolina Industrial Commission
10:15 NORTH CAROLINA REGISTER November 1, 1995 1428
IN ADDITION
City of Greenville
North Carolina
City Attorney's Office
P.O. Box 7207
Greenville, NC 27835-7207
Ms. Elizabeth Johnson
Acting Chief
Voting Section, Civil Rights Division
U.S. Department of Justice
P.O. Box 66128
Washington, D.C. 20035-6128
September 28, 1995
RE: Preclearance of Annexation/City of Greenville. N.C.
Dear Ms. Johnson:
In your letter of August 22, 1995, you advised us that the nine annexations submitted to your office by our office on June
23, 1995 had been precleared pursuant to Section 5 of the Voting Rights Act of 1965. As described in your letter, the
ordinance numbers were "94-19, 25, 26, 36, 38, 41, and 45-47," suggesting that all of the ordinances had a prefix number
of "94." In fact, only Ordinance #94-19 had that prefix; the remainder of the ordinances submitted for preclearance had
a prefix of "95." This apparent oversight has resulted in some confusion in our City Clerk's office and in the office of the
local Board of Elections.
Accordingly, please confirm that the ordinance numbers for the annexations that received preclearance, as advised in your
letter of August 22, 1995, are as follows:
Ordinance No. 94-19 (Lot 4, Block A, Park Place and a portion of Hemby Lane)
Ordinance No. 95-25 (Thomas F. Taft property)
Ordinance No. 95-26 (South Square, Phase 3, Lots 1-2)
Ordinance No. 95-36 (Windsor Subdivision, Section 10, Lot 430)
Ordinance No. 95-38 (Portion of Thomas F. Taft property)
Ordinance No. 95-41 (Covengton Downe Subdivision, Lot 24, Block A)
Ordinance No. 95-45 (G. Randy Bailey property)
Ordinance No. 95-46 (Willow Run)
Ordinance No. 95-47 (Windsor Subdivision, Section 9)
If you need any further information or have any questions, please do not hesitate to call me.
With best wishes, 1 am
Sincerely yours,
Robert W. Oast, Jr.
City Attorney
1429 NORTH CAROLINA REGISTER November 1, 1995 10:15
IN ADDITION
City of Greenville
North Carolina
City Attorney's Office
P.O. Box 7207
GreenvUle, NC 27835-7207
Ms. Elizabeth Johnson
Acting Chief
Voting Section, Civil Rights Division
U.S. Department of Justice
P.O. Box 66128
Washington, D.C. 20035-6128
September 29, 1995
RE: Preclearance of Annexation/City of Greenville. N.C.
Dear Ms. Johnson:
This is a follow-up to my letter to you of yesterday, September 28, 1995, wherein I requested clarification regarding
ordinance numbers for 9 annexations with respect to which you had advised us of preclearance under Section 5 of the Voting
Rights Act in a letter dated August 22, 1995. In yesterday's letter, I advised you that only Ordinance #94-19 had the "94"
prefix, and that the remaining 8 ordinances should have had a prefix of "95. " That information is still correct with respect
to all of the ordinances except 94-19.
In my letter to you of June 21, 1995 (copy enclosed), I listed Ordinance #94-19 as one of those with respect to which the
City was requesting preclearance. A review of the ordinances actually submitted for preclearance indicates that Ordinance
#94-19 should be Ordinance #95-19. A certified copy of that ordinance is enclosed for your use. All of the other ordinance
numbers in that submission are correct, but clarification of your August 22, 1995 letter with respect to those ordinance
numbers is stUl necessary.
I apologize if I have added confusion to this already confusing matter. If you have any questions or need any further
information, please give me a call.
With best wishes, I am
Sincerely yours.
Robert W. Oast, Jr.
City Attorney
10:15 NORTH CAROLINA REGISTER November 1, 1995 1430
IN ADDITION
U.S. Department of Justice
Civil Rights Division
DLP;GS:VNN:tlb Voting Section
DJ 166-012-3 P.O. Box 66128
95-1826 Washington, D.C. 20035-6128
October 10, 1995
Robert W. Oast, Jr. Esq.
City Attorney
P.O. Box 7207
Greenville, North Carolina 27835-7207
Dear Mr. Oast:
This refers to your September 28 and 29, 1995, letters concerning the submission under Section 5 of the Voting
Rights Act, 42 U.S.C. 1973c, of nine annexations (ordinance Nos. 95-19, 25, 26, 36, 38, 41, and 45 to 47) and their
designation to districts of the City of Greenville in Pitt County, North Carolina.
We have reviewed our records and it appears that our August 22, 1995, letter contained a typographical error in
that it stated the incorrect year. Please be advised that our records show that on August 22, 1995, Section 5 preclearance
was granted to the above-referenced changes. We apologize for any inconvenience we may have caused you in this matter.
Sincerely,
Deval L. Patrick
Assistant Attorney General
Civil Rights Division
By:
Elizabeth Johnson
Acting Chief, Voting Section
1431 NORTH CAROLINA REGISTER November 1, 1995 10:15
PROPOSED RULES
TITLE 2 - DEPARTMENT OF AGRICULTURE
Notice is hereby given in accordance with G.S.
150B-21.2 that the North Carolina Board of Agricul-ture
intends to amend rules cited as 2 NCAC 48A .1702;
52B .0207, .0212, .0302; 52C .0105 and adopt 2 NCAC
48C .0029.
Proposed Effective Date: February 1, 1996.
A Public Hearing will be conducted at 10:00 a.m. on
December 7, 1995 at Gov. James B. Hunt, Jr. Horse
Complex (Restaurant), 4601 Trinity Rd. , Raleigh, NC
27607.
Reason for Proposed Action:
2 NCAC 48A .1702 - To add the MUe-a-Minute plant to the
official list of noxious weeds, in order to provide for the
regulation and control.
2 NCAC 48C .0029 - To require the variety to be stated on
the labelfor certain kinds of seed, in order to protect buyers
of seed.
2 NCAC 52B .0207 - To establish requirements for importa-tion
of "sporting swine" into North Carolina, in order to
prevent the introduction and spread of swine diseases and to
modify pseudorabies program requirements for importation
of all breeding swine.
2 NCAC 528 .0212 - To add the Brushtail Possum to the
list of animals for which a permit is requested prior to
importation, in order to prevent the introduction and spread
of animal diseases.
2 NCAC 52B .0302 - To require "sporting swine" offered
for sale within the state to originate from a validated
brucellosis-free herd, in order to prevent the spread of
brucellosis in swine.
2 NCAC 52C .0105 - To require "sporting swine" offered
for sale within the state to originate from a qualified
pseudorabies-negative herd, in order to prevent the spread
of pseudorabies among swine and to modify pseudorabies
program requirements for movement of all feeding and
breeding swine within the state.
Comment Procedures: Interested persons may present their
statements either orally or in writing at the public hearing
or in writing prior to the hearing by mail addressed to
David S. McLeod, Secretary of the North Carolina Board of
Agriculture, P.O. Box 27647, Raleigh, NC 27611.
Fiscal Note: These Rules do not affect the expenditures or
revenues of state or local government funds.
CHAPTER 48 - PLANT INDUSTRY
SUBCHAPTER 48A - PLANT PROTECTION
SECTION .1700 - STATE NOXIOUS WEEDS
.1702 NOXIOUS WEEDS
(a) Class A Noxious Weeds. The North Carolina Board
of Agriculture hereby establishes the following list of Class
A Noxious Weeds:
(1) All weeds listed in 7 C.F.R. 360.200 which is
hereby incorporated by reference including
subsequent amendments and editions. Copies of
the Code of Federal Regulations may be ob-tained
from the Superintendent of Documents,
Government Printing Office, Washington, DC
20402, at a cost of twelve dollars ($12.00);
(2) Elodea, African ~ Lagarosiphon spp. (all spe-cies);
(3) Fern, Water ~ Salvinia spp. (all except S.
rotundifolia);
(4) Mile-a-Minute ;; Polygonum perfoliatum:
(^ £5} Stonecrop, Swamp — Crassula helmsii;
(5) £6} Water-chestnut — Trapa spp.
(b) Class B Noxious Weeds. The North Carolina Board
of Agriculture hereby establishes the following list of Class
B Noxious Weeds:
(1) Betony, Florida—Stachys floridana Shuttlew.;
(2) Fieldcress, Yellow—Rorippa sylvestris (L.)
Bess.;
(3) Lythrum — Any Lythrum species not native to
North Carolina;
(4) Puncturevine—Tribulus terrestris L.;
(5) Thistle, Canada—Cirsium arvense (L.) Scop.;
(6) Thistle, Musk—Carduus nutans L.;
(7) Thistle, Plumeless—Carduus acanthoides L.;
(8) Watermilfoil, Eurasian — Myriophyllum
spicatum L.
;
(9) Waterprimrose, Uruguay — Ludwigia
uruguayensis (Camb.) Kara.
(c) Class C Noxious Weeds. The North Carolina Board
of Agriculture hereby establishes the following list of Class
C Noxious Weeds: none.
Statutory Authority G.S. 106-420.
SUBCHAPTER 48C - SEEDS
.0029 VARIETY LABELING
The variety name shall be stated on the seed analysis label
for the following kinds of seed:
(1) cotton;
(2) field com;
(3) peanuts:
(4) soybeans;
(5) tobacco; and
(6) wheat.
Statutory Authority G.S. 106-277.15.
CHAPTER 52 - VETERINARY DIVISION
SUBCHAPTER 52B - ANIMAL DISEASE
10:15 NORTH CAROLINA REGISTER November 1, 1995 1432
PROPOSED RULES
SECTION .0200 - ADNUSSION OF
LIVESTOCK TO NORTH CAROLINA
.0207 IMPORTATION REQUIREMENTS:
SWINE
(a) All swine imported into the state, except by special
permit or for immediate slaughter, shall be accompanied by
an official health certificate issued by a state, federal, or
accredited veterinarian stating that they are free from any
signs of an infectious or communicable disease and are not
known to have been exposed to same. The health certificate
shall contain the ear tag number of each animal or other
identification acceptable to the State Veterinarian. Swine
imported for feeding or breeding purposes shall be moved
in clean and disinfected trucks or other conveyances.
(b) Breeding swine shall originate from a "Validated
Brucellosis-Free" herd or a "Validated Brucellosis-Free"
State and originate from a "Qualified Pseudora-bies-
Negative" h*fd herd, Qualified-Negative Gene-Altered
Vaccinated Herd (QNV) or Pseudorabies Stage IV or V
(Free) State as defined in Title 9, Parts 78.1 and 85 of the
Codo of Fadoral Rogulaliono. Parts 78 . 1 and 85 of Titl e 9
of th e Code of Fodoral Regulationo are hereby adoptod by
rcfcronce, including subseque nt amendments.—Copios of the
Codo of Fodoral Regulations may bo obtained from tho
Govomment Printing Offioo, Waohington, B.C., at a ooot
determined by that offic e.
(c) All feeder swine imported into the state shall be
accompanied by an official health certificate issued by a
state, federal or accredited veterinarian stating that:
(1) No pseudorabies vaccine has been used in the
herd of origin, unless the herd is a pseudorabies
Controlled Vaccinated herd as defined in Title 9,
Part 85. 1 of tho Code of Federal Regulations, or
a poeudorabi eo monitored vaccinated herd; and
(2) The swine were tested and found negative for
pseudorabies within 30 days prior to importa-tion;
or
(3) The swine originated from a pseudorabies-free
area as determined by the State Veterinarian; or
(4) The swine originated firom a Qualified Pseudora-bies
Negative Herd as defined in Title 9, Part 85
of the Code of Federal Regulationo ; or
(5) The swine originated from a monitored feeder
pig herd. For the purp>oses of this Rule, in
order to qualify' aa a monitored feeder pig herd,
testing must have boon performed in aooordanoe-with
the following standards:
(A)
—
In herds of ton or fewer brooding swine, all
brooding owine must test negative within 12
months prior to importation.
fB)
In herds of 1
1
—to 35 breeding swine,—tea
randomly selected breeding animals, (to in
elude giltii. sows and boars) must teet negative
within 12 months prior to importation.
(C^
In herds of more than 35 breeding swine,
either 30 or 30 percent of tho total herd.
whiobovor is looa, randomly soloctod brooding
ffi
lto, BOWS and boaro muot toot negative within
12 months prior to importation.
(©)
—
All brooding gilto, sows and booro in a herd
shall bo subject to random selection for testing.
(E)
Testing must be done by use of an official
poeudorabioo toot, as de fined in Titl e 9, Port
85 of the Codo of Fodoral Regulations.
(d) Healthy swine for feeding purposes may move directly
from a farm of origin in a contiguous state on which they
have been located for not less than 30 days to a livestock
market or stockyard in North Carolina that has been
state-federal approved for handling feeder swine, without the
health certificate required herein, provided such swine are
accompanied by proof of the pseudorabies status of the herd
of origin acceptable to the State Veterinarian. Such swine
shall be inspected by a state or federal inspector or approved
accredited veterinarian prior to sale at the market.
(e) Healthy swine may be shipped into the state for
immediate slaughter without a health certificate provided
they go directly to a slaughtering establishment approved by
the State Veterinarian, or to a state-federal approved
livestock market or stockyard for sale to an approved
slaughtering establishment for immediate slaughter only.
(f) j\fl uflod in Paragraph (c)(1) of thio Rulo, a "monitorod
vaooinatod herd" moono a herd in which all brooding swine
over six months of age have boon officially vaooinatod by on
accredited vetorirutrian s^'ith a vaocine tho titers of which can
bo distinguished from psoudorabios fiold infections and tho
herd hac paooed an official random sample toot or complete
herd toot during the preceding 12 months.—(From propoood
Pseudorabies Emdication Uniform Methods and Rules of tho
United States Department of Agriculture.)
(f) Sporting swine:
(1) For purposes of this Rule:
(A) "Sporting swine" means any domestic or feral
swine intended for hunting purposes and in-cludes
the progeny of these swine whether or
not the progeny are intended for hunting
purposes;
(B) "Feral swine" means any swine that have lived
any part of its life free roaming.
(2) No person shall import sporting swine into
North Carolina unless:
(A) The swine have not been fed garbage within
their lifetime; and the herd of origin is vali-dated
brucellosis free and qualified pseudora-bies
negative; and
CB) The swine have not been members of a herd of
swine known to be infected with brucellosis or
pseudorabies within the previous 12 months;
and
im The individual animals six months of
im
or
over have a negative brucellosis and pseudora-bies
test within 30 days of movement; and
The swine have not been a part of a feral
swine population or been exposed to swine
1433 NORTH CAROLINA REGISTER November 1, 1995 10:15
PROPOSED RULES
captured from a feral swine population within
the previous 12 months: and
CE) The swine are accompanied by an official
health certificate or certificate of veterinary
inspection identifying each animal by ear tag,
breed, age, sex, the state of origin, and certi-fying
that the swine meet the import require-ments
of North Carolina.
Note: Violation of this Rule is a misdemeanor under G.S.
106-307.6, which provides for a five hundred dollar
($500.00) fine, six months' imprisonment, or both.
Statutory Authority G.S. 106-307.5; 106-316.1; 106-317;
106-318.
.0212 IMPORTATION REQUIREMENTS:
WILD ANIMALS
(a) A person shall obtain a permit from the State Veteri-narian
before importing any of the following animals into
this State:
(1) Skunk;
(2) Fox;
(3) Raccoon;
(4) Ringtail;
(5) Bobcat;
(6) Coyote;
(7) Morten. Marten:
(8) Brushtail Possum (Trichosurus vulpecula").
(b) Permits for the importation into this State of any of
the animals listed in (a) of this Rule shall be issued only if
the animal(s) will be used in a research institute inotitute, or
for public display or organized entertainment as in zoos or
circuses.
(c) Llamas, all cervidae, bioon bison, and all other
bovidae other than domestic cattle may be imported into the
State if accompanied by an official health certificate issued
by an accredited veterinarian which states that:
(1) all animals six months of age or older have
tested negative for brucellosis within 30 days
prior to importation; and
(2) all animals six months of age or older have
tested negative for tuberculosis within 60 days
prior to importation pursuant to the guidelines of
the United States Department of Agriculture
Veterinary Services Notice dated December 31,
1990, which states "the cervical test for cervidae
is the intradermic injection of 0.1 ml. of U. S.
Department of Agriculture (USDA) contract
PPD Bovis tuberculin in the midcervical region
with reading by observation and palpation at 72
hours, plus or minus 6 hours"; and
(3) the herd of origin has had no brucellosis or
tuberculosis diagnosed within the past 12
months.
(d) Other wild and semi-wild animals, under domestica-tion
or in custody may be imported into this state State.
provided that a report of the number of animals by species
is made to the State Veterinarian within 96 hours after entry
into the otate, State and that an immediate opportunity for
examination to determine the health status of such animals
is afforded the State Veterinarian or his authorized represen-tative.
Statutory Authority G.S. 106-317; 106-400.
SECTION .0300 - BRUCELLOSIS
REGULATIONS
.0302 BRUCELLOSIS REQUIREMENTS
FOR SALE OF CATTLE AND SWINE
(a) All cattle offered for public sale must test negative for
brucellosis within 30 days preceding the date of sale except
those cattle listed as follows:
(1) cattle sold for immediate slaughter;
(2) native heifers and bulls less than 18 months of
age;
(3) steers and spayed heifers;
(4) officially brucellosis vaccinated heifers of the
dairy breeds imder 20 months of age (provided
that all officially brucellosis vaccinated heifers
of any breed that are parturient or post parturi-ent
must be tested and negative for brucellosis);
(5) officially brucellosis vaccinated heifers of the
beef breeds imder 24 months of age (provided
that all officially brucellosis vaccinated heifers
of any breed that are parturient or post parturi-ent
must be tested and negative for brucellosis);
(6) cattle originating directly from a certified brucel-losis-
free herd;
(7) heifers under 12 months of age purchased for
feeding purposes; at the discretion of the State
Veterinarian, buyers of feeder heifers under 12
months of age may be required, before they
remove such cattle from place of purchase, to
sign a statement of intent to feed those cattle not
tested for brucellosis in isolation from breeding
animals. Willful failure of a buyer of such
cattle to sign a statement of intent when re-quested
by the State Veterinarian or his autho-rized
representative or willful failure to comply
with such a signed statement of intent is a
violation of this Section.
(b) All swine sold or offered for sale for breeding
purposes must originate directly from a validated brucello-sis-
free herd unless they originate from a state classified as
swine-brucellosis free.
(c) Sporting swine:
(1) For the purpose of this Rule:
(A) "Sporting swine" means any domestic or feral
swine intended for hunting purposes and in-cludes
the progeny of these swine whether or
not the progeny are intended for hunting
purposes:
(B) "Feral swine" means any swine that have lived
10:15 NORTH CAROLINA REGISTER November 1, 1995 1434
PROPOSED RULES
any part of its life free roaming.
(2) All sporting swine sold or offered for sale must
originate directly from a validated brucellosis-free
herd.
Statutory Authority G.S. 106-389; 106-396.
SUBCHAPTER 52C - CONTROL OF
LIVESTOCK DISEASES: MISCELLANEOUS
PROVISIONS
SECTION .0100 - DISEASED AND DEAD
ANIMALS
.0105 PSEUDORABIES STATUS AND
TESTEVG
(a) Feeding and breeding swine may not be transported on
any public road or held in any public place unless accompa-nied
by a written permit from the State Veterinarian or
proof satisfactory to the State Veterinarian that:
(1) No pseudorabies vaccine has been used in the
herd of origin, unless the herd is a pseudorabies
Controlled Vaooinated herd as de fined in Title 9.
Part 85. 1 of the Code of Federal Rogulations, or
a psoudorabios monitored vaccinated herd or
unless the use of vaccine has been approved
under the North Carolina Pseudorabies Program;
and
(2) The swine were tested and found negative for
pseudorabies within 30 days prior to movement;
or
(3) The swine originated from a pseudorabies-free
area as determined by the State Veterinarian; or
(4) The swine originated from a Qualified Pseudora-bies
Negative Herd as defined in Title 9, Part 85
of the Code of Federal Regulations; or
(5) The swine originated from a monitored feeder
pig herd; or herd.—For the purposes of this
Rule, in orde r to qualify' as a monitored feeder
pig herd, testing must have boon porformod ia
accordanoc with the following stimdords:
(A^
In herds of ton or fewer breeding swine , all
breeding owine must test negativ e within 12
months prior to movement.
(B)
In herds of 1 1 to 35 brooding swino, ton
randomly selected breeding animals, (to in
elude gilts, sows and boars) must test negative
within 12 months prior to movement.
fG^)
—
In herds of more than 35 brooding swine.
e ith e r 30 or 30 pe rcent of the total herd,
whichever is less, randomly oeleoted breeding
gilts, sows and boars must tost negative within
12 months prior to movement.
(©^
All brooding gilts, cows and boars in a herd
shall be subj ect to rtmdom selection for testing.
(E)
Testing must bo done by use of an offioial
pseudorabies test, as dofmod in Title 9, Part
85 of the Code of Fodoral Rogulationo; Of
(6) The swine are being transjwrted or held in
accordance with the North Carolina Pseudora-bies
Program.
(b) The State Veterinarian or his representative is autho-rized
to test swine for pseudorabies in accordance with G.S.
106-400.1.
(c) Swine transported on a public road or held in a public
place in violation of this Rule are subject to quarantine and
may be transported or held only by written permit from the
State Veterinarian or his representative.
{4)—As usod in Paragraph (aXl) hereof, a "monitored
vaocirmtod herd" moons a herd in which all brooding swino
o'i
'er six months of ago have boon officially vaooinated by an
aooredited veterinarian with a vaooine the titers of which oan
bo distinguished from psoudorabios Field infoctiono and the
herd has {xisscd an official random sample tost or oomploto
herd test during the preceding 12 months.—(From proposed
Poeudombios Eradication Uniform Motbodo and Ruloo of tho
United Statos Dopartmont of Agrioulturo.)
(d) Sporting swine: m
(A}
mi
m
For the purpose of this Rule:
"Sporting swine" means any domestic or feral
swine intended for hunting purposes and in-cludes
the progeny of these swine whether or
not the progeny are intended for hunting
purposes;
"Feral swine" means any swine that have lived
any part of its life free roaming .
All sporting swine sold or offered for sale must
originate directly from a qualified pseudorabies-negative
herd.
Note: Violation of this regulation is a misdemeanor under
G.S. 106-22(3), and is punishable by fme or imprisonment
of not more than two years, or both.
Statutory Authority G.S. 106-22(3); 106-400.1.
TITLE 10 - DEPARTMENT OF HUMAN
RESOURCES
Notice is hereby given in accordance with G.S.
150B-21.2 that the Director of the Division of Mental
Health, Developmental Disabilities and Substance Abuse
Services intends to adopt rules cited as 10 NCAC 14C . 1015
- . 1018. . 1149 - . 1160, amend rules cited as 10 NCAC 14C
.1001 - .1002, .1004- .1006, .1010- .1014, .1101 - .1102,
.1114. .1123, .1133 - .1137, .1140. .1148; 14D .0006 and
repeal rules cited as 10 NCAC 14C .1003, .1008. .1103 -
.1105, .1107, .1110- .1111, .1115 - .1121, .1125 - .1131.
.1138- .1139, .1141 - .1147.
Proposed Effective Date: February 1 , 1996.
Instructions on How to Demand a Public Hearing (must
be requested in writing within 15 days of notice): Any
1435 NORTH CAROLINA REGISTER November 1, 1995 10:15
PROPOSED RULES
individual who wishes to demand a public hearing should
contact Charlotte Tucker, Division of Mental Health,
Developmental Disabilities and Substance Abuse Services,
325 N. Salisbury Street, Raleigh, NC 27603, (919-733-4774)
within 15 days of this Notice.
Reason for Proposed Action: The statewide implementa-tion
of the Pioneer Funding System and the Division 's move
away from categorical funding sources has resulted in the
necessity for a complete rules revision regarding accounting
procedures for area programs and contract agencies.
Comment Procedures: Any interested person may submit
written comments and state the Rules to which the comments
are addressed. These comments will be accepted through
December 1, 1995.
Fiscal Note: These Rules do not affect the expenditures or
revenues of state or local government funds.
CHAPTER 14 - MENTAL HEALTH: GENERAL
SUBCHAPTER 14C - GENERAL RULES
SECTION .1000 - ACCOUNTING STANDARDS
FOR ALL RECIPIENTS OF FUNDS
ADMINISTERED BY THE DIVISION
.1001 EFFECT OF THIS SECTION
The requirements of this Section shall apply to all area
programs and their subrecipient agencies receiving funds
administered by the Division and discussed in Section . 1 100
of this Subchapter.
Statutory Authority G.S. 122C-147.1.
.1002 MEMORANDUM OF AGREEMENT
AND ANNUAL SERVICE PLAN
(a) An annual plan and budgot shall bo required from oroa
programs before any state or federal funds administered by
the Division mny be allooated to an area program.—Suoh
annual plan and budgot shall bo in accordanco with Chapter
159 of the Gonoral Statutes. The area program shall
develop and maintain their annual budget in accordance with
G.S. 159.
(b) Tho annual plan and budgot of an area program shall
bo approved by the area board and oignod by the aroa board
chairman. The area program shall prepare and submit to
the Division the annual service plan and Memorandum of
Agreement in accordance with G.S. 122C-143.2. Detailed
instructions are issued annually by the Division.
Statutory Authority G.S. 122C-112; 122C-143.2; 122C-
144.1.
.1003 BUDGET FORM
(a)
—
The annual budget shall be on a standard form
available from tho fiscal sorviooo ooction of tho Division.
Qet)—The otondord form oholl require information on the
ootimatod oxpondituroo and revenue of the area programo.
On an annual basis tho Division Director will iasuo inatnic
tions which apooify tho roquirod infonnatioa.
Statutory Authority G.S. 143B-10.
.1004 REPORTS REQUIRED
(a^
—
iMl programs receiving funds administered by the
Division shall submit quarterly roporto of roooipts and
oxponditufos to tho Division.
(b)
—
Suoh quarterly reports shall bo submitted on a
standard form available from tho Fisoal s«r>'io eo section of
the Division.—Other formats may be used if approved by tho
Division.
(c) Suoh standard form or format shall require a otatomont
of roooipts—and expenditures by major t)'peo of funds
received and expended during the quarter reported on and
during tho fiscal year to date.—Tho amount of suoh roooipts
or oxpondituros shall bo compared to tho annual budgot and
the amount of unrealized receipts and unexpended expondi
ture line items shall be indicated.
(d) Such standard forms or foi'uiat shall bo signed by tho
area director and fiscal officor.
(e) Quarterly reports are to be filed no later than the 15th
of th e month following the quarter being reported upon.
Exceptions may bo made to this date for justifiable roasons.
The Secretary may require reports in accordance with
G.S. 122C-144.1.
Statutory Authority G.S. 122C-112; 122C-144.1.
.1005 ANNUAL AUDIT REPORT
Each program receiving funds administered by the
Division shall submit an annual audit audited financial
statomonts in accordance with requirements of G.S.
122C 132, 122C 1 43, G.S. 159-34 and the Local Govern-ment
Commission. Commisoion by the date indicated on the
approved audi t oontroot or the date indicated on the amended
audit contract.
Statutory Authority G.S. 122C-112; 122C-144.1; 159-34.
.1006 BUDGET REVISIONS
(a) No revision of tho budgot as doscribod in this Section
or transfer of funds from a cost center stated on the budgot
to another cost center shall be made without the prior
approval of tho area board. Tho aroa board may authorize
tho aroa program budgot officer to transfer moneys from
one line item of expenditure to another within the same cost
center as Uotod on the approved budget ordinance subj ect to
written limitations and proooduros tho aroa board proscribes.
All such tronsfora shall bo reported to tho aroa board at its
next regular meeting and shall be entered in tho minutes.
An information copy of all locally approved budget revisions
shall bo forvi'ardod to tho appropriate regional office of tho
Division to tho attention of tho regional accountant.—Area
10:15 NORTH CAROLINA REGISTER November 1, 1995 1436
PROPOSED RULES
programs shall vorif>' that any tronafor of funds is in
oomplionoo with the Divioion'o oooounting rulee in this
Sootion and Sootiop . 1 100 of thio Subchapter and Rule .0006
in 10 NCAC 11D and G.S. 122C 143.—The following
budget revisions shall bo approved by tho regional ofFioo:
f4^ any budget revioion within a oost oenter or
boPiii eon ooot c anters whioh would cause division
funds to bo transferred from one disability area
to another or from one categorical—fund to
another; and
(S^ any budget revision ' 'I'hioh ohongeo client oor
vices OS approved in tho annual plan and budget.
(b) Tho Division shall monitor for budgetary complianco
of expendituree at the cost center total level.
(o) Tho area program budget revisions shall be on a forra
prescribed by the Division.
(d) Approved rovisions or transfers shall bo reflected in
tho next quarte rly report of the area program.—If the
revision affects funds for Titl e XX of the Social Seourit)'
Act. 4 2 U.S.C. 13 97 through 13Q7(f). the next monthly
request for roimbursomont shall reflect tho revision. Caro
shall be taken to assure that budget revisions ore made
timely for Title XX because the Division will not honor
monthly request—for payments—for vi hich tho apprc'ed
budget docs not agroo with request for payment.
(e)
—
The need for each budget revision shall be justified
briefly and explicitly on the aomo form ao the budget
revision, if space f)ormit»:
—
If space doos not permi tT-a
separate form shall bo attached.
(f) Budget reviaionii whioh roduoo oalarieo and wagee and
fringe benefits because of vacant positions shall include in
tho justification a statement explaining how tho current coat
for which tho lapsed salaries are to be used are to bo
supfwrted in oubooquent years.—Lapsed salaries and wages
shall not bo transferred to other line items solely to expend
tho budget, to stockpile commoditiee or to roplaco existing
equipment unless tho existing oquipmont con no longer moot
tho program ncodo for v.'hich it vi'as purchased.
(g) i\rea programs which contract with private or public
sori'icc providers on any basi s other than a unit cost basis,
fixed rote basis, or fee for 6er.'ice basis shall utilize a policy
for budget revisions no l ees string ent than the revision
policy that the Division applies to th e area program. The
area board shall at its discretion allow the area director to
approve budget rovisions from contractors.—It shall bo
neceoGar)' for the area board to incorporate in tho minutes of
a board mooting that the area director has authority' to
approve budget rovisions from contractors.
(h) Tho Kvision shall not participate in any expenditures
not in acoordanoe with an approved budget.
^—The area program shall oonsult with the appropriate
regional office of tho Division for any needed clarification
or assistance.
Revisions to the budget must be in accordance with G.S.
159-15.
Statutory Authority G.S. 159-15.
.1008 INVOICES
Invoices used to bill for oervioeo reoderod by area pro
grame shall bo on a ntondord formi—Suoh form invoioe ohall
require such information as namo and address of purchaoof
,
invoioe date and numbor, doooription of sorviooe rwidorod
and amount of invoioe.
Statutory Authority G.S. 122C-112; 122C-147.
.1010 CO^^TRACT REQUIREMENTS
FOR AREA PROGRAMS
(a) This Rule applies to all contracts between an area
program (hereafter referred to as "contractor") and contract
providers (hereafter referred to as "contractees"). For
purposes of this Rule, contractees include:
(1) an individual with whom a contract is made for
professional services, including consultants and
guest speakers; and
(2) an agency agency, other than another area
program, with whom a contract is made for the
provision of services to one or more clients.
(b) The basis for the relationship between the contractor
and the for-profit or non-profit contractee is the written
contract. All mutual understandings and expectations shall
be clearly stated in the contract. Contracts botwoon a
contractor and a profit or non profit oontraotoo, All
contracts for provision of services to clients, shall contain,
at a minimum, the following provisions as indicated in this
Rule.—Minimum requiromonts for all oontracts shall bo:
Rule, except that Subparagraphs (b'Xll) and (b) (IS) of this
Rule shall not apply to contracts with individuals:
(1) names of the contracting parties;
(2) beginning and ending dates of the contract
period; however, no contract shall extend be-yond
the fiscal year; years, except as allowed by
G.S. 159;
(3) detailed description of the services to be pro-vided
and the expectations of the parties;
(4) amount and method of payment;
(5) address and social security number or IRS
identification number of contractee;
(6) the following statement when a contract period
is greater than 30 days: "This contract may be
terminated at any time upon mutual consent of
both parties or 30 days after one of the contract-ing
parties gives notice of termination;"
(7) a statement which indicates that the contract may
be terminated immediately with cause upon
written notice to the other party; the cause shall
be documented in writing to the other party
detailing the grounds for termination; and if
applicable, the contract may contain a provision
indicating method of payment of liquidated
damages uf>on such termination;
(8) a clause which indicates that the contractor
(area) is held harmless from acts committed by
the contractee;
1437 NORTH CAROLINA REGISTER November 1, 1995 10:15
PROPOSED RULES
(9) signature of each party to the contract; and
(10) a pre-audit statement in accordance with G.S.
159 28 . 159-28;
(o) Additional roquiromonto when oontmoting with a profit
or non profit oontraotoo shall bo oo followo:
(11) fi^ either a Division approved unit cost baais or
the total coot basis (lino item budget) shall bo
utilized; a statement specifying the procedure for
budget revisions, if applicable, and provisions
for fund balance; and a statement which in
cludoo!
(12) (A) the procedure for resolving disagreement
between the contracting parties;
(13) (^ for total ooot oontracto, for equipment pur-chased
with non unit cost reimbursement funds,
such as start up or special purpose funding, title
to assets purchased under the contract in whole
or in part rests with the contractor so long as
that party continues to provide the services
which were supported by the contract; if such
services are discontinued, disposition of the
assets shall occur as approved by the Division;
(14) (€) client records of the contractee shall be
accessible for review for the purpose of monitor-ing
services rendered, financial audits of third
party payors, research and evaluation;
(15) (©) upon request, the contractee shall provide
data about individual clients for research and
study to the contractor;
(16) (E) the contractor requirement to provide to the
contractee all pertinent rules, regulations, stan-dards
and other information distributed by the
Division necessary for the performance of the
contractor under the terms of the contract;
(17) (F) the contractor requirement to monitor the
contract to assure compliance with rules of the
Commission, the Secretary and G.S. 122C-142;
(18) (G) a copy of the independent audit referenced
in Subparagraph (e){4) (b)(20) of this Rule, if
required, shall be forwarded to the Office of the
State Auditor at 300 North Salisbury Street,
Raleigh, North Carolina 27603-5903.
(19) (3) provisions which outline the responsibility of
the contractee for the adoption, assessment,
collection and disposition of fees in accordance
with G.S. 122C-146;
(20) ^ a requirement that the contractee shall make
available to the contractor its accounting records
for the purpwse of audit by State authorities and
that the party will, when required by general
statute or in accordance with APSM 75-1,
Section 4.2, have an annual audit by an inde-
[jendent certified public accountant.
(c) Agreements with another area program for provision
of services to clients shall be incorporated into the annual
Memorandum of Agreement referenced in Rule .1002 of
this Section.
Statutory Authority G.S. 122C-112; 122C-141; 122C-142;
122C-146; 159-40; 143-6. 1.
.1011 FUND ROUTING
Except as authorized by the General Assemblv:
(1) (a^ all All oommunity related state and federal
funds allocated by the Division for the operation
provision of community aduk mental health, child
mental health, mental retardation, aloohol and
drug abuoe programe developmental disability and
substance abuse services shall be allocated to
through the area program, program unloos other
wioe required by the grantor of ouoh funds to the
Division.
(2) (b) Programs providing mental hoolth, mental
rotxirdation and oubotanoo abuse oervioos which
oeri'e more than one oatohment area and are not
imder a looal mental health authority' may reoeivo
oommunity funds directly from the Division, the
Division mav allocate and contract directly for the
provision of non-treatment activities including but
not limited to administration, training and preven-tion.
Statutory Authority G.S. 122C-112; 122C-147.1;122C-131.
.1012 DENIAL, DELAY OR REDUCTION
OF PAYMENTS
The flow of funds under any of the funding programs
dioousood in Sootion .1100 of this Subchapter shall, oo
determined by the Division Director, bo delayed or cancolod
to programs which do not timely make all reports required
by this Section. The Division may delay, reduce or deny
pavments to area programs in accordance with G.S. 122C-
151.
Statutory Authority G.S. 122C-151.
.1013 RECOVERY OF DIVISION FUNDS IN
NON-COMPLLVNCE SITUATIONS
(a) The Division shall review all non-compliance situa-tions
occurring in area programs to determine if division
funds were involved in the non-compliance situations.
Non-compliance situations are those situations or actions that
occur which are not in accordance with division, depart-ment,
state, and federal rules, policies, regulations, or
statutes.
(b) The basis for determining if division funds wore
involved in the out of oomplianoe situation shall bo the
Division's effective rate of participation, if any, in the
situation, shall be determined in accordance with Section 20
of Volume IV of the Pioneer Funding System Operating
10:15 NORTH CAROLINA REGISTER November 1, 1995 1438
PROPOSED RULES
Manual.
{^ Tho offeotive rate of division participation for
aroa matching oupported ooot ohall bo determined
on on individual cost contor basis by dividing tho
aroa matching funds allocatod for tho )'oar by tho
total budgeted expendituroo inoludod in that ooot
oenter.
(3) TTic offootivo rato of division participation for
tho division's catogorical funds shall bo dotor
mined by dividing th e oategorioal fund per ooet
center involved by the total budgeted expendi
turog in tho coot oontor or cost contors Lnvolvod.
(c) Division participation in non-compliance situations
shall be recovered through receipt of a check or by reducing
the current year's allooation of payment of allocated division
funds otherwise due the area program . Tho Regional
Director shall notify' tho Director of tho aroa program of the
proposed re>duotion and the reaoono for tho reduction on a
standard form to bo provided by the fiocal oer<'ioeo oeotion
of tho Division.—Throo oomplotod copies of this form shall
bo sent to tho Division's chiof of Fiscal sorvicoe by tho
Re gional Director so that neoeooar)' accounting entrioo to
re flect the reduction con be recorded in the Division's
accounting rocorda if no app>oal is Filed in accordanco with
(f) of this Rule.—If tho Division's allocation for tho Fiscal
year has already boon dmv.Ti doviTi when the non compliance
situation becomes known, the The area program shall
reimburse the Division within 60 days of being invoiced or
notified of the required payback, unless notiFication of
appeal is rendered by the Area Authority .
(d^
—
If, for the Fiscal year in which the non compliance
situation occurred, the offoctivo participation rate at tho ond
of tho Fiscal year basod on actual annual expenditures is
different than the rate used at the time of the reduction of
division funds, an adjustment shall be made to reflect the
increased amount duo to tho Division or to credit tho amount
overpaid by tho area program against any amount duo.—H
no amount is due from the area program Vi hioh con be
credited with the overpniymont, the Division shall refund the
overpayment from available funds within tho operating
budget p>onding any nocessar>' approval required by tho
Division of State Budget.
( e) I'Vny non compliance amount determined at the end of
the Fiscal year in tho Division' s tentative settlement report
shall bo handled in a mannor consistent with (b)(1) and
(b)(3) of this Rule.
(d) (f) If the Director of the area program disagrees with
the non-compliance decision, thea within 60 days of receipt
of the notiFication of non-compliance, the Director of the
area program shaii may send to the Division Director a
request for appeal pursuant to G.S. 122C-145, 122C \A1
and 10 NCAC IK .0900 (DHR Administrative Standards).
(e) (g) Pending the final agency decision on the appeal of
the non-compliance decision, the Division shall not with-draw
or reduce the amount of funds due the area program.
Statutory Authority G.S. 122C-112; 122C-147.
.1014 EXPENDITURE OF DIVISION FUNDS
SETTLED ON AN EXPENDITURE BASIS
(a) The Division shall allow area programs to may budget
division catogorical funds within cost centers that also
include, but are not limited to, local funds, aroa matching
funds, federal funds or other division oategorioal funds.
When area programs elect to budget division oategorioal
fiinds within a cost center that is settled on an expenditure
basis with such other funds, funds shall be considered to
have been expended in the following order: the Division
shall oonflider the Division oategorioal funds to be expended
under tho following criteria:
fi) For area program op>oratod oori'ioos!
(1) (A) special grants from non-divisional sources
that are for reimbursement of the same expendi-tures
as those for which divisional categorical
funds are appropriated (examples are grants
from R.J. Reynolds , the Department of Public
Instruction or Division of Youth Services -
Community-Based Alternative Funds);
(2) (B) block grant funds federal funds from the
Division; and
(3) (G) state oategorioal funds from the Division.
Revenue from non-divisional sources and block
grant funds shall be deducted from total cost
center expenditures for the purpose of determin-ing
the net cost upon which the state oategorioal
share is based. Client-earned income, such as
payments received from patients or third parties
(insurance, Medicare, Medicaid), which is
received but not expended shall be retained by
the area program, or tho contract program and
bo UBod to further tho objoctivoa of tho logisla
tion establishing the state oategorioal funding.
When olient earned income rooults in on area
program's fund balanoo being in oxooas of 15
percent of its annual—operating budget.—tb©
amount in exoeso of 15 percent shall be handled
in aooordanoo with the Division's rule on fund
balances, Rule .1125 of this Subchapter.
(3) For contracted programs:
(A) The area program shall eotablish on expendi
ture and fund balance policy.
(B) For contracted sori'icos, each contract shall
detail how tho oxpondituro and fund balanco
policy will apply to the contracted oer<'ice.
(€) If the area program contracts with a provider
that also provides non aroa program oontrao
tual seri'iooQ, tho contracted provider shall bo
required to identify the fund balanoe for the
area program contracted service only.
(b) Expenditures for Social Services Block Grant total
cost programs shall continue to bo budgeted and expended
in aooordanoe with applioable Title XX matohing formula
and eUgibilit)' criteria. Settlement of Willie M. and TTiomas
S^ funds shall be in accordance with Rules .1 136 and .1 148
of this Section, respectively.
1439 NORTH CAROLINA REGISTER November 1, 1995 10:15
PROPOSED RULES
nftof apooittl granto from non divioional oouikmw bo long aa
theoe funds do not supplant local or state funds.—For the
purpose of determining whether blook grant fundo ore boing
uflod to supplant looal of state funds within a ourfont yoof,
the prior year oxpondituro data shall bo used.—All rovonuos
retailting from the blook grant funded projoot shall bo uood
by the service whioh produced the revenue.—If existing
9or>'ico8 cannot bo oxpandod or now sor^'icos started, tho
rovonuos shall bo used to roduoo the amount of block grant.
Statutory Authority G.S. 122C-112; 122C-147.
(o) State and Social Sor^'icoo Blook Grant adult develop
mental activit)' program funding ohall, unleoo a total coot
method of roimburoomont is authoriEed by tho Division, be
baaod upon a unit ooot rato determined by ooot studies
conducted by division staff.—Tho roimburoomont rato shall
be booed upon actual net cost (total ooot less other oourcea
of support) or tho otatewido maximum rate, whichever is
(d) State subsidy payments for dovolopmontal disabilitios
da)' pare and developmental dioabilities community residen
tial oen'ioo shall continue to be reimbursed on a statewide
(o) Block grant fundo shall bo the first dollar expended
.1015 FUND BALANCE: COMPUTATION FOR AREA PROGRAMS
(a) In order for the Division to have input into the actions regarding fund balances in area programs, the following shall
take place after the certified public accountant's audit report is rendered and the tentative settlement report prepared:
(1) The fund balance set forth within the annual audit of area programs shall be verified by the Division.
(2) Since single county area programs are considered a department of the county for budgetary and financial
reporting, separate fund balances for the single county area programs are not required. In order to assure that
single county area programs are in compliance with the G.S. 122C-146 which states that fees received for
services shall not reduce or replace the budgeted commitment of local tax revenue, the Division shall review the
utilization of county general funds and the disposition of fees received for service each year.
(3) To determine the unrestricted fund balance for a multi-county area program or single county area program which
maintains a separate fund balance and the percent that it represents to the operating budget, the Division shall
use the following format:
Current Assets Per Audit Report
Less: Current Liabilities Per Audit Report
Fund Balance
Less: Reserve for Encumbrances
Reserve for Patients Accounts Receivable
Less: Allowance for Doubtful Accounts Patient
Accounts Receivable
Reserve for Accounts Receivable from Governmental Entities
Reserve for Inventory
Reserve for DWI Fees
Reserve for Drug Education School Fees
Reserve for Restricted Donations
Fund Balance Restriction Previously Approved by
DMH/DD/SAS
Willie "M"
Thomas S^
Other(List)
$
L 1
%.
i 1
i £ i
i 1
L i
L i
i 1
i i
i 1
L i
£ i
i 1
Unrestricted Fund Balance
Currently approved budget including expansion
Percent Unrestricted Fund Balance to Current Annual Budget percent
£4} If the unrestricted fund balance is not in excess of 15 percent of the current annual budget, no action is to take
place.
(5) If the unrestricted fund balance is over 15 percent of the current annual budget, the Division shall recoup in
an amount equal to the fund balance in excess of J_5 percent in accordance with Tentative Settlement Report
procedures per APSM 75-1. Section 4.3. The area program may request permission from the Division Director
to restrict fund balance in excess of the 15 percent limitation for specific purposes.
10:15 NORTH CAROLINA REGISTER November 1, 1995 1440
PROPOSED RULES
(h) The amount of reduction of financial support by the division to area programs as referenced in Subparagraph (a'XS)
of this Rule may be decreased and/or delayed if there are extenuating circumstances which, in the opinion of the Division
Director, warrant relaxation of this policy. Any action taken in regard to this Paragraph shall be documented in writing.
Statutory Authoritx G.S. 122C-1 12(a)(6): 122C-144; 122C-146; 122C-147; 143B-10; 159-8.
.1016 DISPOSITION OF EQUIPMENT - NON UCR
(a) Equipment costing five thousand dollars ($5.000) or
more purchased with non-UCR Division funds by an area
program or contract provider shall be used for Division
funded client services. Except for Willie M and Thomas S^
funded purchases, equipment purchased with Division funds
may be transferred to other Division funded ser.'ices if no
longer needed by the original service. Willie M and
Thomas S^ purchased equipment shall be used only for
Willie M or Thomas S^ clients or disposed of in accordance
with Rule . 1 136 or . 1 148 of this Subchapter.
(b) Except as stated in Paragraph (c) of this Rule, should
transfer of equipment to Division funded services not be
possible, the Division shall be contacted by the area pro-gram
or through the area program for a contract provider
for disposition instructions. The Division will recover the
Division's share of the fair market value. The Division's
share will be established by the following methods in order
of preference.
( 1
)
Through inventory records which establish the
percent of funding for the equipment.
(2) The Division's percent of participation for the
area program for the year of purchase.
(3) Tlie Division's percent of participation for the
area program for the current year.
(c) Equipment which is fully depreciated and no longer
has any useful value may be disposed of in accordance with
area program policy.
(d) Tlie area program will have a written procedure
stating the equipment disposition policy for contract provid-ers
and include or reference this provision in aH contracts
between the area program and the contract provider.
Statutory Authority G.S. 122C-147.
.1017 START UP FUNDING
(a) The Division may provide funding outside of UCR for
initial purchases of equipment, supplies and operational
expenditures for the establishment of a program, ser\'ice or
facility.
(b) Requests for start up shall be made by the area
program, or through the area program in the case of a
contract provider, in whose catchment area the new pro-gram,
service or facility is being established. Requests shall
be made in writing to the Division Director or designee and
shall include a line item budget and justification. Requests
may include expenses for normal operation such as staff,
utilities and rent but such request may not exceed 60 days
without specific written authorization. Approvals will be
granted based on availability of funds and merit of request.
Statutory Authority G.S. 122C-147.
.1018 AREA AUTHORFTY FINANCIAL
FAILURE DEFINED
(a) An area authority is in imminent danger of failing
financially if the Division determines at any time that one or
more of the following conditions are met:
(1) The projected annual expenditures of the area
authority exceed the sum of the projected annual
revenues and fund balance of the authority and
the governing board of the authority has not
demonstrated an ability or willingness to take
appropriate action to correct the imbalance: or
(2) The area authority has not complied with the
reporting requirements of G.S. 122C-124. as set
forth in the annual Memorandum of Agreement
between the Division and the area authority.
fb) An area authority is in imminent danger of failing to
provide direct service to clients if it is in imminent danger
of failing financially as defined in this Rule.
Statutory Authority G.S. 122C-125.
SECTION .1100 - STATE AND FEDERAL
FUNDS ADMINISTERED
.1101 METHOD OF PAYMENT
(a) Grontfl deooribed in thio Section shall bo made for tho
ficool year.
(fe) An advance of 1/12 of tho total annual allocation of
grants shall be made to tho area program at tho beginning of
tho fiooal year.—Advanoemento of more than 1/12 may bo
made if jiuitifi ed and authorized by the Divioion.—Applioa
tions for advonoomonts of moro than 1/12 shall bo made in
writing.
(e) Funding oubsoquent to tho advonoement shall bo mado
on a monthly or quarterly basis-
Payment will be based on earnings, monthly advancement
or other basis as authorized by the IDivision and stated in the
Memorandum of Agreement.
Statutory Authority G.S. 143B-10.
.1102 REQUEST FOR FUNDS
A monthly or quarterly request for funds administered by
the Division and paid on a basis other than unit cost earn-ings
and alf |