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£3R/kf>J/'74-34- /-AZ- /rt&7/ The NORTH CAROLINA REGISTER IN THIS ISSUE PROPOSED RULES Dietetics/Nutrition Environment, Health, and Natural Resources Human Resources Insurance Justice Labor Medical Examiners Mortuary Science Secretary of State Transportation Rl IVED m 1AW LIBRARY mmt- RRC OBJECTIONS CONTESTED CASE DECISIONS ISSUE DATE: October 14, 1994 Volume 9 • Issue 14 • Pages 1063 - 1151 INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE NORTH CAROLINA REGISTER The North Carolina Register is published twice a month and contains information relating to agency, executive, legislative and judicial actions required by or affecting Chapter 150B of the General Statutes. All proposed administrative rules and notices of public hearings filed under G.S. 1 50B-21 .2 must be published in the Register. The Register will typically comprise approximately fifty pages per issue of legal text. State law requires that a copy of each issue be provided free of charge to each county in the state and to various state officials and institutions. The North Carolina Registers available by yearly subscription at a cost of one hundred and five dollars ($105.00) for 24 issues. Individual issues may be purchased for eight dollars ($8.00). Requests for subscription to the North Carolina Register should be directed to the Office ofAdministrative Hearings, P. O. Drawer 27447, Raleigh, N.C. 27611-7447. ADOPTION, AMENDMENT, AND REPEAL OF RULES The following is a generalized statement of the procedures to be followed for an agency to adopt, amend, or repeal a rule. For the specific statutory authority, please consult Article 2A ofChapter 1 50B of the General Statutes. Any agency intending to adopt, amend, or repeal a rule must first publish notice of the proposed action in the North Carolina Register. The notice must include the time and place of the public hearing (or instructions on how a member of the public may request a hearing); a statement of procedure for public comments; the text of the proposed rule or the statement of subject matter; the reason for the proposed action; a reference to the statutory authority for the action and the proposed effective date. Unless a specific statute provides otherwise, at least 1 5 days must elapse following publication of the notice in the North Carolina RegisterbefoK the agency may conduct the public hearing and at least 30 days must elapse before the agency can take action on the proposed rule. An agency may not adopt a rule that differs substantially from the proposed form published as part of the public notice, until the adopted version has been published in the North Carolina Register for an additional 30 day comment period. When final action is taken, the promulgating agency must file the rule with the Rules Review Commission (RRC). After approval by RRC, the adopted rule is filed with the Office of Administrative Hearings (OAH). A rule or amended rule generally becomes effective 5 business days after the rule is filed with the Office of Administrative Hearings for publication in the North Carolina Administrative Code (NCAC). Proposed action on rules may be withdrawn by the promulgating agency at any time before final action is taken by the agency or before filing with OAH for publication in the NCAC. TEMPORARY RULES Under certain emergency conditions, agencies may issue tempo-rary rules. Within 24 hours of submission to OAH, the Codifier of Rules must review the agency's written statement of findings of need for the temporary rule pursuant to the provisions in G.S. 150B-2 1 . 1 . If the Codifier determines that the findings meet the criteria in G.S 150B-21.1, the rule is entered into the NCAC. If the Codifier determines that the findings do not meet the criteria, the rule is returned to the agency. The agency may supplement its findings and resubmit the temporary rule for an additional review or the agency may respond that it will remain with its initial position. The Codifier, thereafter, will enter the rule into the NCAC. A temporary rule becomes effective either when the Codifier of Rules enters the rule in the Code or on the sixth business day after the agency resubmits the rule without change The temporary rule is in effect for the period specified in the rule or 1 80 days, whichever is less. An agency adopting a temporary rule must begin rule-making procedures on the permanent rule at the same time the temporary rule is filed with the Codifier. NORTH CAROLINA ADMINISTRATIVE CODE The North Carolina Administrative Code (NCAC) is a compilation and index of the administrative rules of 25 state agencies and 38 occupational licensing boards. The NCAC comprises approximately 15,000 letter size, single spaced pages of material of which approxi-mately 35% is changed annually. Compilation and publication of the NCAC is mandated by G.S. 150B-21.18. The Code is divided into Titles and Chapters. Each state agency i; assigned a separate title which is further broken down by chapters Title 21 is designated for occupational licensing boards. The NCAC is available in two formats. (1) Single pages may be obtained at a minimum cost of two dollars and 50 cents ($2.50) for 10 pages or less, plus fifteer cents ($0.15) per each additional page. (2) The full publication consists of 53 volumes, totaling ir excess of 15,000 pages. It is supplemented monthly witl replacement pages. A one year subscription to the ful publication including supplements can be purchased foi seven hundred and fifty dollars ($750.00). Individual vol umes may also be purchased with supplement service. Re newal subscriptions for supplements to the initial publicatioi are available. Requests for pages of rules or volumes of the NCAC should be directed to the Office of Administrative Hearings. CITATION TO THE NORTH CAROLINA REGISTER The North Carolina Register is cited by volume, issue, pagi number and date. 1:1 NCR 101-201, April 1, 1986 refers to Volumi 1, Issue 1, pages 101 through 201 ofthcNorthCarolinaRegisterissuei on April 1, 1986. FOR INFORMATION CONTACT: Office of Administra-tive Hearings, ATTN: Rules Division, P.O. Drawer 27447, Raleigh, North Carolina 2761 1-7447, (919) 733-2678. NORTH CAROLINA REGISTER Office of Administrative Hearings P. O. Drawer 27447 Raleigh, North Carolina 27611-7447 (919) 733-2678 Julian Mann III, Director James R. Scarcella Sr., Deputy Director Molly Masich, Director ofAPA Services Staff: Ruby Creech, Publications Coordinator Teresa Kilpatrick, Editorial Assistant Jean Shirley, Editorial Assistant This publication is printed on permanent, acid-free paper in compliance with G.S. 125-11.13. ISSUE CONTENTS I. PROPOSED RULES Environment, Health, and Natural Resources Health Services 1112 Marine Fisheries Commission ... 1109 Human Resources Mental Health, Developmental Disabilities and Substance Abuse Services 1063 Insurance Actuarial Services Division .... 1072 Agent Services Division 1065 Life and Health Division 1071 Justice N.C. Sheriffs' Education & Training Standards Commission 1075 Labor Boiler and Pressure Vessel 1076 Licensing Boards Dietetics/Nutrition 1115 Medical Examiners 1119 Mortuary Science 1120 Secretary of State Notary Public Division 1112 Transportation Highways, Division of 1114 II. RRC OBJECTIONS 1122 III. CONTESTED CASE DECISIONS Index to ALJ Decisions 1124 Text of Selected Decisions 93 OSP 1001 . 1136 93 OSP 1505 1141 IV. CUMULATIVE INDEX 1149 NORTH CAROLINA REGISTER Publication Schedule (April 1994 - January 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 notice * End of Required Comment Period 30 days from notice Last Day to Submit to RRC ** Earliest Effective Date 9:1 04/04/94 03/11/94 03/18/94 04/19/94 05/04/94 05/20/94 07/01/94 9:2 04/15/94 03/24/94 03/31/94 05/02/94 05/16/94 05/20/94 07/01/94 9:3 05/02/94 04/11/94 04/18/94 05/17/94 06/01/94 06/20/94 08/01/94 9:4 05/16/94 04/25/94 05/02/94 05/31/94 06/15/94 06/20/94 08/01/94 9:5 06/01/94 05/10/94 05/17/94 06/16/94 07/01/94 07/20/94 09/01/94 9:6 06/15/94 05/24/94 06/01/94 06/30/94 07/15/94 07/20/94 09/01/94 9:7 07/01/94 06/10/94 06/17/94 07/18/94 08/01/94 08/22/94 10/01/94 9:8 07/15/94 06/23/94 06/30/94 08/01/94 08/15/94 08/22/94 10/01/94 9:9 08/01/94 07/11/94 07/18/94 08/16/94 08/31/94 09/20/94 11/01/94 9:10 08/15/94 07/25/94 08/01/94 08/30/94 09/14/94 09/20/94 11/01/94 9:11 09/01/94 08/11/94 08/18/94 09/16/94 10/03/94 10/20/94 12/01/94 9:12 09/15/94 08/24/94 08/31/94 09/30/94 10/17/94 10/20/94 12/01/94 9:13 10/03/94 09/12/94 09/19/94 10/18/94 11/02/94 11/21/94 01/01/95 9:14 10/14/94 09/23/94 09/30/94 10/31/94 11/14/94 11/21/94 01/01/95 9:15 11/01/94 10/11/94 10/18/94 11/16/94 12/01/94 12/20/94 02/01/95 9:16 11/15/94 10/24/94 10/31/94 11/30/94 12/15/94 12/20/94 02/01/95 9:17 12/01/94 11/07/94 11/15/94 12/16/94 01/03/95 01/20/95 03/01/95 9:18 12/15/94 11/22/94 12/01/94 12/30/94 01/17/95 01/20/95 03/01/95 9:19 01/03/95 12/08/94 12/15/94 01/18/95 02/02/95 02/20/95 04/01/95 9:20 01/17/95 12/21/94 12/30/94 02/01/95 02/16/95 02/20/95 04/01/95 This table is published as a public service, and the computation of time periods are not to be deemed binding or controlling. Tune 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 above, 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 business day of the next calendar month. Raised 03/94 PROPOSED RULES TITLE 10 - DEPARTMENT OF HUMAN RESOURCES Notice is hereby given in accordance with G.S. 150B-21.2 that the Commission for Mental Health, Developmental Disabilities and Substance Abuse Services intends to amend rules cited as 10 NCAC 18F .0313 and .0319. 1 he proposed effective date of this action is January 1, 1995. Instructions on How to Demand a Public Hearing (must be requested in writing within 15 days of notice): A demand for a public hearing must be made in writing and mailed to Charlotte Tucker, Rulemaking Coordinator, Division of Mental Health, Developmental Disabilities and Substance Abuse Services, Albemarle Building, 325 N. Salisbury Street, Raleigh, NC 27603. Tfiis demand must be made within 15 days of this notice. MXeason for Proposed Action: Amend for further clarification in the provision ofDWl assessments. (comment Procedures: Anyone who wishes to submit written comments should address them to Charlotte Tucker, Division of Mental Health, Developmental Disabilities and Substance Abuse Services, 325 N. Salisbury Street, Albemarle Bldg., Raleigh, NC 27603. Comments will be accepted from October 14, 1994 through November 14, 1994. CHAPTER 18 - MENTAL HEALTH: OTHER PROGRAMS SUBCHAPTER 18F - PROGRAM SUPPORT STANDARDS SECTION .0300 - SUBSTANCE ABUSE ASSESSMENTS FOR INDIVIDUALS CHARGED WITH OR CONVICTED OF DRIVING WHILE IMPAIRED (DWI) .0313 DEFINITIONS For the purpose of the rules in this Section, the following terms shall have the meanings indicated: (1) "American Society of Addiction Medicine (ASAM) Placement Criteria" means the (2) (3) (4) (a) Patient Placement Criteria for the Treat-ment of Psychoactive Substance Abuse Disorders, copyright 1991 by the Nation-al Association of Addiction Treatment Providers and the American Society of Addiction Medicine. For these Rules, the ASAM Level I, Outpatient Treat-ment, has been divided into LA., Short-term and LB., Longer-term Outpatient Treatment. "Certified ADETS Instructor" means an individual who is certified by the Divi-sion in accordance with 10 NCAC 18M .0906 Instructor Certification, contained in Division publication, Standards for Area Programs and Their Contract Agen-cies, APSM 35-1, and available at the current printing cost. "Clinical Interview" means the face-to-face interview with a substance abuse professional intended to gather informa-tion on the client, including, but not limited to the following: demographics, medical history, past and present driving offense record, alcohol concentration of current offense, social and family history, substance abuse history, vocational back-ground and mental status. "Continuing Care" means an outpatient service designed to maximize the recov-ery experience begun in more intensive inpatient or outpatient treatment. As a continuation of the treatment experience this service is expected to begin immedi-ately upon the client's discharge from intensive treatment: When the continuing care follows an inpatient treatment experience , it shall : fh) — include, at a minimum, a total number of 20 contact hours of service during a 30 day period.—Each week of the 30 day period shall have scheduled hours of service; and (it) continue for a minimum period of 90 days. a total of 90 days, including the inten-sive inpatient treatment period, shall be provided; a minimum of 20 contact hours of 0) mi m service during a 30-day period shall be provided. Each week of the 30- day period shall have scheduled hours of service; and for any of the remaining 90 days of continuing care, a specific schedule 9:14 NORTH CAROLINA REGISTER October 14, 1994 1063 PROPOSED RULES for contact hours of service ]s not required. (b) The services shall be provided accord-ing to a written continuing care plan which shall: (i) address the needs of the client; and (ii) utilize individual, family and group counseling as required to meet the needs of the client. (5) "Division" means the same as defined in G.S. 122C-3; and is hereafter referred to as DMH/DD/SAS. (6) "DMH Form 508 (DWI Services Certifi-cate of Completion)" means the four-part form which is used in documenting the offenders completion of the DWI sub-stance abuse assessment and treatment or ADETS. (7) "Driving record" means a person's North Carolina driving history, as maintained by the North Carolina Driver's License Division's history file. (8) "DSM" means the current edition of the Diagnostic and Statistical Manual of Mental Disorders of the American Psy-chiatric Association. (9) "DWI" means impaired driving as de-scribed in G.S. 20-138.1. (10) "DWI categories of service" mean: (a) "Alcohol and Drug Education Traffic School (ADETS)" means an approved curriculum which shall: (i) include 10 to 13 contact hours in a classroom setting; (ii) be provided by area programs or their designated agencies with certified ADETS instructors; and (iii) be designed for persons: (A) who have only one DWI convic-tion (lifetime); (B) whose assessment did not identify a "Substance Abuse Handicap"; and (C) whose alcohol concentration was . 14 or less. (b) "Day treatment" means a structured, outpatient service. It may also be called intensive outpatient treatment, as defined in 10 NCAC 14N .0900 and applicable portions of 10 NCAC 14K .0300, which include ASAM Level II treatment criteria. (c) "Inpatient residential treatment servic-es" means an array of services which may include detoxification and rehabili-tation in a structured environment, as set forth in 10 NCAC +4© 14N .0300, and contained in Licensure Rules as defined in Item (13) of this Rule. Such services will correspond with ASAM Level III and Level IV treatment crite-ria. (d) "Longer-term outpatient treatment" means a structured program meeting the ASAM definition of Level I, Outpatient Treatment, and requiring a minimum of 40 contact hours scheduled to maintain the client in active treatment for a minimum period of 60 days, providing counseling and learning experiences which include the "Minimal Subject Content," as defined in Item (14) of this Rule. The facility must operate in compliance with Licensure Rules, 10 NCAC 14N .0700 and applicable por-tions of 10 NCAC 14K .0300. (e) "Short-term outpatient treatment" means a structured program meeting the broad definition of "ASAM Level I, Outpa-tient Treatment," and requiring a mini-mum of 20 contact hours over a period of at least 30 days, including counseling and didactic experiences which include the minimal subject content. Facilities which are approved to provide this shall operate in compliance with Licensure Rules contained in 10 NCAC 14N .0700 and applicable portions of 10 NCAC 14K .0300. (11) "DWI Substance Abuse Assessment" means a service provided to persons charged with or convicted of DWI to determine the presence or absence of a substance abuse handicap. The assess-ment involves a clinical interview as well as the use of a standardized test. (12) "Facility" means the term as defined in G.S. 122C-3(14). (13) "Licensure rules" mean the rules con-tained in 10 NCAC 14K through 140 of the North Carolina Administrative Code and published in Division publication, Licensure Rules for MH/DD/SA Facili-ties, APSM 40-2. (14) "Minimal subject content" means the following list of subjects which shall be addressed in the educational portion of any treatment program serving DWI offenders: (a) Effects of Alcohol and Drugs on the 1064 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES Body/Brain; (b) The Nature of Denial; (c) Disease Concept of Chemical Depen-dency; (d) Progression of Disease and Recovery (Jellinek Chart); (e) Chemical Dependency and the Family; (f) Introduction to Self-Help Groups/ 12 Step Recovery Programs; (g) Relapse Prevention and Strategies for Recovery; and (h) Safe Roads Act Penalties. (15) "Special service plan" means a plan for persons who exhibit unusual circumstanc-es, such as severe hearing impairment; other physical disabilities; concurrent psychiatric illness; language and commu-nication problems; intractable problems of distance, transportation and schedul-ing; and chronic offenders with multiple unsuccessful treatment experiences. (16) "Standardized Test" means an instrument approved by the Department of Human Resources, with documented reliability and validity, which serves to assist the assessment agency or individual in deter-mining if the client has a substance abuse handicap. A current listing of the ap-proved standardized tests may be obtained by writing the DWI/Criminal Justice Branch, Division of MH/DD/SAS, 325 N. Salisbury Street, Raleigh, NC 27603. (17) "Substance Abuse Handicap" means a degree of dysfunction directly related to the recurring use/abuse of an impairing substance. the expiration date. (c) The facility providing the recommended treatment or education shall have the client sign the appropriate release of information, and progress reports shall be filed with the court or the Department of Correction at intervals not to exceed six months. (d) Upon completion of the recommended treatment or ADETS service, the agency shall: (1) forward the top page of the completed DMH Form 508 to the DWI/Criminal Justice Branch, DMH/DD/SAS; and (2) retain, for a period of at least five years, the appropriate page of the form, and distribute the remaining pages to the offender and the court as specified on the bottom of the form. (e) In the event that an assessment or treatment agency ceases to provide DWI-related services, the agency shall notify, in writing, the DWI Criminal Justice Branch to assure that all DMH Form 508s and other related documents specified in G.S. 20- 179(m) are properly processed. (f) By February 15 of each year, all assessing agencies shall forward, in writing, to the DWI/Criminal Justice Branch of the Division the following information on the previous year's activities, which shall include but need not be limited to the number of: (1) pre-trial assessments conducted; (2) post trial assessments conducted; (3) individuals referred to ADETS; and (4) substance abuse handicaps identified and the recommended levels of treatment. Statutory Authority G. S. 20-1 79(m). Statutory Authority G.S. 20-138.1; 20-179; 122C-3. TITLE 11 - DEPARTMENT OF INSURANCE .0319 REPORTING REQUIREMENTS (a) The assessment portion of the DMH Form 508 shall be completed for each client who receives a DWI substance abuse assessment. An initial supply of this form may be obtained from the DWI/Criminal Justice Branch of the DMH/DD/SAS, 325 N. Salisbury Street, Raleigh, N.C. 27603. (b) The assessment portion of DMH Form 508 shall be signed by a certified alcoholism, drug abuse, or substance abuse counselor. The date of expiration of that professional's certification shall be indicated on the client's Certificate of Completion and no assessment shall be signed after Notice is hereby given in accordance with G.S. 150B-21.2 that the N.C. Department of Insurance intends to amend rules cited as 11 NCAC 6A .0801 - .0806, .0808 - .0809 and .0811. 1 he proposed effective date of this action is January 1, 1995. 1 he public hearing will be conducted at 10:00 a.m. on November 8, 1994 at the Dobbs Building, 3rd Floor Hearing Room, 430 N. Salisbury Street, Raleigh, NC 27611. 9:14 NORTH CAROLINA REGISTER October 14, 1994 1065 PROPOSED RULES lYeason for Proposed Action: Pursuant to recom-mendations made by continuing education advisory committee in compliance with G.S. 58-33-135, the amendments clarify problems identified during the first three years of the program. (comment Procedures: Written comments may be sent to George Brown at 430 N. Salisbury Street, Raleigh, N.C. 27611. Oral presentations may be made at the public hearing. Anyone having ques-tions should call George Brown at (919) 733-7487 or Ellen Sprenkel at (919) 733-4529. CHAPTER 6 - AGENT SERVICES DIVISION SUBCHAPTER 6A - AGENT SERVICES DIVISION SECTION .0800 - CONTINUING EDUCATION .0801 DEFINITIONS As used in this Section: (1) "Cluster of courses" means a number of courses, each of which is less than +30 100 minutes in length, but altogether +30 100 minutes or more in length, that are offered within one state or national pro-gram or convention. (2) "Course" means a continuing education course directly related to insurance prin-ciples and practices or a course designed and approved specifically for licensees; but does not mean a business course of a general nature or an insurance marketing or sales course. (3) "Disinterested third party" means a per-son not concerned, with respect to possi-ble gain or loss, in the result of a pend-ing course final examination. (4) "Distance learning" means an educational program in which the licensee and the instructor are in different physical loca-tions and interact with each other through various methods of telecommunication. (5) "Dual credit course" means a continuing education course that contains material that qualifies for both life and health insurance ICECs and property and liabili-ty_ insurance ICECs. {$) "Insurance continuing education credit or "ICEC"" means a value assigned to a <JU course by the Commissioner after review and approval of a course information. This term means the same as "credit hour" as used in G.S. 58-33-130. (7) $€r) "Instructor" means an individual who teaches, lectures, leads, or otherwise instructs a course. (8) f?) "Licensee" means a duly licensed §*e and casualty property and liability insur-ancet or life, accident, and health insur-ance^— eF—aeeideat—aad—beaHb-4as«faftee agent or broker who is required to com-ply with this Section. (9) {&) "Supervised examination" means a timed, closed book examination that is monitored by a disinterested third party and graded by a nationally recognized insurance education program. (10) {9) "Supervised individual study" means audio tapes, video tapes, computer pro-grams, programmed learning courses, and similar types of learning experiences that are completed in the presence of an approved instructor. Statutory Authority G.S. 58-2-40; 58-33-130. .0802 LICENSEE REQUIREMENTS (a) Life and health licensees shall obtain 12 ICECs during each calendar year in approved life and health courses. (b) Property and liability licensees shall obtain 12 ICECs during each calendar year in approved property and liability courses. (c) Any person holding more than one license to which this Section applies shall obtain 18 ICECs during each calendar year, including a minimum of six ICECs for each kind of license. (d) An instructor shall receive the maximum ICECs awarded to a student for the course. (e) Licensees shall not receive ICECs for the same course more often than one time in any three calendar year period except when there are major revisions within the course. The Commissioner shall determine whether the revisions are substan-tial enough to qualify for additional ICECs within a three calendar year period. (f) Licensees do not have to obtain ICECs for the calendar year in which they are initially li-censed. (g) Licensees shall receive ICECs for a course only for the calendar year in which the course is completed. Any course requiring an examination shall not be considered completed until the licensee passes the examination. 1066 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES (h) Licensees shall maintain records of all ICECs for three years following the obtaining of such ICECs, which records shall be available for inspection upon the Commissioner's request. (i) Nonresident licensees who meet continuing education requirements in their home states meet the continuing education requirements of this Section. Nonresident licensees whose home states have no continuing education requirements shall meet the requirements of this Section. (j) Licensees are exempt from the requirements of this Section if they: (1) are age 65 or older; and (2) have been continuously licensed in the line of insurance for at least 25 years; and either (3) hold a nationally recognized profession-al designation for the line of insurance. Acceptable designations include those listed in 11 NCAC 6A .0803 (a) and (b);or (4) meet the requirements of Subparagraphs (1) and (2) of this Paragraph and certify to the Department of Insurance annually they are inactive agency owners who neither solicit applications for insurance nor take part in the day to day opera-tion of the agency. (TO Any licensee holding: more than one license to which this Section applies and qualifies for exemption under Paragraph £j] of this Rule for one license type must obtain a minimum of six ICECs in each calendar year for the license type not exempted . £1} {k) Courses completed prior to the issue date of a new license do not meet the requirements of this Section for that new license. (m) ft) No credit will be given for courses taken before they have been approved by the Depart-ment. £n] (m) Persons who hold adjuster licenses shall obtain 12 ICECs during each calendar year in approved property and liability courses. As used in this Section, "licensee" includes a person who holds an adjuster license and who is required to comply with this Section. (o) {ft) Each agent holding an active surplus lines license with an effective date before January 1 , 1994, must take a surplus lines course as part of the agent's 1994 property and liability continuing education requirement. Each agent issued a surplus lines license in 1994 must take a surplus lines course as part of the agent's 1995 property and liability continuing education requirement. Statutory Authority G. S. 58-2-40; 58-33-130. .0803 COURSES SPECIFICALLY APPROVED (a) Courses that are necessary to obtain the following nationally recognized designations are approved as they exist on the effective date of this Section for 18 ICECs upon successful completion of the national examination for each part: (1) Accredited Advisor in Insurance (AAI); (2) Associate in Claims (AIC); (3) Associate in Loss Control Management (ALCM); (4) Associate in Risk Management (ARM); (5) Associate in Underwriting (AU); (6) Certified Employees Benefit Specialist (CEBS); (7) Chartered Financial Consultant (ChFC); (8) Chartered Life Underwriter (CLU); (9) Chartered Property and Casualty Un-derwriter (CPCU); (10) Fellow Life Management Institute (FLMI); (11) General Insurance (INS); (12) Life Underwriter Training Council Fellow, 26 week (LUTCF). (b) Courses that are necessary to obtain the following nationally recognized designations are approved as they exist on the effective date of this Section for an amount of ICECs to be determined by the Commissioner's evaluation process: (1) Agency Management Training Course Graduate; (2) Certified Insurance Counselor (CIC); (3) Certified Insurance Service Representa-tive (CISR); (4) Certified Professional Service Repre-sentative (CPSR); (5) Fraternal Insurance Counselor (FIC); (6) Health Insurance Associate (HI A); (7) Life Underwriter Training Council Fellow, 13 weeks (LUTCF); (8) Registered Health Underwriter (RHU). (c) Courses that are taught by a college or university that is accredited by the Southern Association of Colleges and Schools are approved as they exist on the effective date of this Section for a number of ICECs to be determined by the Commissioner's evaluation process. (d) Each course provider or designee shall submit a fee of one dollar ($1.00) per approved ICEC per individual that successfully completes the course. (e) The statute and rule update Any course prepared by the Commissioner is approved as a 9:14 NORTH CAROLINA REGISTER October 14, 1994 1067 PROPOSED RULES mandator)! 1 component of each resident licensee's continuing education requirement for a number of ICECs to be determined annually by the Commissioner's evaluation process. Statutory Authority G.S. 58-2-40; 58-33-130. .0804 CARRYOVER CREDIT (a) No more than 75 percent of the ICECs required shall be carried forward from the previous year. Licensees holding one license shall carry over no more than nine ICECs. Licensees holding more than one license shall carry over no more than six ICECs for any one license. Ne carry—over credit—wtH — be given—for Medicare supplement/long term—eafe — courses—et—fef—the mandatory statute and rule update course, (b) Only whole ICECs can be carried over. (c) No carryover shall apply to a dual license holder if the licensee qualifies for an exemption under Rule .0802(i) of this Section. Statutory Authority G. S. 58-2-40; 58-33-130. .0805 CALCULATION OF ICECs The following standards shall be used to evaluate courses submitted for continuing education approval : (1) Programs requiring meeting or classroom attendance: (a) Courses or clusters of courses of less than +20 100 minutes will not be evaluated for continuing education ICECs. (b) Courses will not be approved for less than one ICEC. (c) One ICEC shall be awarded for each 69 50 minutes of instruction unless the Commissioner assigns fewer ICECs based upon the evaluation of the submitted course materials. Courses will only be approved for whole ICECs. (d) Course providers must properly monitor participants for attendance and attention. (2) Independent study programs: (a) Independent study programs qualify for continuing education only when there is a supervised examination. No examination administered or graded by insurance company personnel for its own employees will be considered to be administered by a disinterested third party. (b) Each course shall be assigned ICECs, which shall be awarded upon the successful passing of the supervised examination. (3) Distance Learning Programs: (a) Distance learning qualifies only when an approved instructor is available to respond to questions and to maintain attendance records. (b) Any organization sponsoring a teleconference shall have a person approved to be an on-site instructor. Statutory Authority G.S. 58-2-40; 58-33-130. .0806 ATTENDANCE (a) If six ICECs or less are assigned to a course, the licensee must attend 100 percent of the course to receive any ICECs. (b) If more than six ICECs are assigned to a course, and the licensee passes the exam and attends at least 80 percent of the course, the licensee shall receive 100 percent of the ICECs assigned to the course. (c) If more than six ICECs are assigned to a course, and the licensee does not pass the exam but attends at least 80 percent of the course, the licensee shall receive 80 percent of the ICECs assigned to the course. (d) An instructor may conduct a class with up to 30 students with no additional assistance. For classes with attendance exceeding 30 students, one monitor is required for each additional 50 students or any portion thereof. (e) Providers conducting classes outside of the State where at least 25% of the students are requesting North Carolina ICECs shall make arrangements and pay all expenses for one or more Department continuing education monitors to attend. Statutory Authority G.S. 58-2-40; 58-33-130. .0808 INSTRUCTOR QUALIFICATION (a) Instructor qualification requirements shall be the same as those for instructors as provided in 1 1 NCAC 6A .0705(c), except that the Commissioner may approve instructors possessing specific areas of expertise to instruct courses comprising those areas of expertise. (b) Insurance company trainers as instructors must be full time salaried employees of the insurance company sponsoring the course and must have as part of their full time responsibilities the duty to provide insurance company training. 1068 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES (c) College and university instructors may be full time or adjunct faculty of the accredited college or university, must be teaching a curriculum course in his or her field of expertise, and must meet the requirements of the association that accredits the college or university. (d) The Commissioner may require applicants and current instructors to submit to a personal interview, provide a video or audio type, a written history of courses taught or any other documentation that will verify the applicant's qualifications to instruct approved insurance courses. Statutory Authority G.S. 58-33-130. .0809 APPROVAL OF COURSES (a) Providers of all courses specifically approved under 11 NCAC 6A .0803 must file copies of program catalogs, course outlines, copies of advertising literature, a filing fee of one hundred dollars ($100.00) per course up to a two thousand five hundred dollar ($2,500) per calendar year maximum, and any other documents or related materials that the Commissioner requests, prior to January 1, 1991, and within 30 days of any changes to such programs in the future. (b) All providers of courses not specifically approved under 1 1 NCAC 6A .0803 must do the following: (1) Any individual, school, insurance company, insurance industry association, or other organization intending to provide classes, seminars, or other forms of instruction as approved courses shall apply on forms provided by the Commissioner; pay a filing fee of one hundred dollars ($100.00) per course up to a two thousand five hundred dollar ($2,500) per calendar year maximum and provide the requested number of copies of detailed outlines of the subject matter to be covered, copies of handouts to be given, the qualifications of each instructor, and other information requested by the Commissioner to support the request for approval. (2) Providers of supervised individual study programs must file the requested number of copies of the study programs. Extra copies will be returned to a provider after course approval if a return fee is paid in advance. (3) Such applications and accompanying information must be received by the Commissioner at least 30 days prior to the intended beginning date of the course. (4) The Commissioner shall approve or deny the application; and shall indicate the number of ICECs that have been assigned to the course if approved. If a course is not approved or disapproved within 60 days after receipt of all required information, the course is deemed to be approved at the end of the 60-day period. (5) If a course approval application is denied, a written explanation of the reason for such action shall be furnished with the denial. (c) Course approval applications must include all of the following forms and attached information in exactly the following order: (1) A cover letter with payment of a filing fee of one hundred dollars ($100.00) per course attached with separate paragraphs for the following: (A) a request that the course be evaluated; (B) for whom the course is designed; (C) the course objectives; (D) the names and duties of all persons who will be affiliated in an official capacity with the course; (E) the course provider's tuition and fee refund policy; and (F) an outline that shall include a statement of the method used to determine whether there will be meaningful attainments of education by licensees to be certified upon their satisfactory completion of the course. Such method may be a written examination, a written report, certification of attendance only, or other methods approved by the Commissioner. The outline shall describe the method of presentation; (2) The course content outline with instruction hours assigned to the major topics; (3) Instructor qualification form and instructor resume if not previously approved; (4) Schedule of dates, beginning and ending times and places the course will be offered, along with the names of instructors for each course session. 9:14 NORTH CAROLINA REGISTER October 14, 1994 1069 PROPOSED RULES Schedules shall be submitted at least 30 days in advance of any subsequent course offerings but it will not be necessary that courses be resubmitted unless there are substantial changes in content; and (5) A copy of the course completion certificater; and (6) A package of the course materials that each student shall be given before the start of class. At a minimum this package shall include the course content outline with instruction times assigned to all major topics, the instructor's resume, and a course and instructor assessment form. (d) The Commissioner may waive any part of this Section for programs offered by the University of North Carolina system schools or the North Carolina Department of Community Colleges. (e) A provider may request that its materials be kept confidential if they are of a proprietary nature. The Commissioner will review and promptly return such extra copies of materials if a return fee is paid in advance. (f) A provider must indicate the requested primary line of authority on the course approval form for dual credit courses. (g) ff) Courses awarded more than six ICECs must have an Insurance Department approved exam for the student to get full credit; otherwise, the limitations of 11 NCAC 6A .0806(c) will apply. (h) {g) Cancelled course schedules must be submitted five days before the scheduled course offering. All students scheduled to attend the cancelled course must be informed of the cancellation. (i) Dual credit courses that are submitted shall be awarded no more than six ICECs for one of the lines of insurance plus no more than three ICECs for the other line of insurance. Statutory Authority G. S. 58-2-40; 58-33-130. .0811 SANCTIONS FORNONCOMPLIANCE (a) This Rule establishes sanctions for licensees who fail to complete their annual continuing education requirements and for licensees, course providers, course provider personnel, course presenters, course presenter personnel, and course instructors who falsify any records or documents in connection with the continuing education program or who do not comply with G.S. 58-33-125 or this Section. (b) The failure of a licensee to meet the annual continuing education requirement shall result in the cancellation of his or her license for the subsequent calendar year. The license will be reinstated upon proof that the licensee has completed the continuing education requirements and subsequently passed the agent's licensing examination by July 1 of each year of cancellation. If requirements for reinstatement are not completed by July 1 , the licensee will be required to complete the full pre-licensing education requirement and pass the agent's licensing examination before the license will be reinstated. (c) The Commissioner may suspend, revoke, or refuse to renew a license for any of the following causes: (1) Failure to timely respond to insurance department inquiries, including continuing education audit requests. (2) Requesting an extension or waiver under false pretenses. (3) Refusing to cooperate with insurance department employees in an investigation or inquiry. (d) The Commissioner may suspend, revoke, or refuse to renew a course provider's, presenter's or instructor's authority to offer courses for any of the following causes: (1) Advertising that a course is approved before the Commissioner has granted such approval in writing. (2) Submitting a course outline with material inaccuracies, either in length, presentation time, or topic content. (3) Presenting or using unapproved material in providing an approved course. (4) Failing to conduct a course for the full time specified in the approval request submitted to the Commissioner. (5) Preparing and distributing certificates of attendance or completion before the course has been approved. (6) Issuing certificates of attendance or completion prior to the completion of the course. (7) Failing to issue certificates of attendance or completion to any licensee who satisfactorily completes a course. (8) Failing to promptly notify the Commissioner of suspected or known improper activities including attendance and attention irregularities in writing. (9) Any violation of the North Carolina 1070 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES General Statutes or Administrative Code. (10) Failing to diligently monitor attendance and attention of attendees. (11) Conducting classes in facilities not in compliance with the federal Americans with Disabilities Act or any similar State law or any applicable State or federal laws pertaining to safety. (12) Presentation of course material in a manner that is factually inaccurate, communicatively faulty. or grammatically inaccurate, as based upon multiple evaluations by Department continuing education monitors. education coordinator. Deputy Commissioner of the Agent Services Division, or the Senior Deputy Commissioner of the Public Services Group. (e) Course providers and presenters are responsible for the activities of persons conducting, supervising, instructing, proctoring, monitoring, moderating, facilitating, or in any way responsible for the conduct of any of the activities associated with the course. (f) In addition, the Commissioner may require any one of the following upon a finding of a violation of this Section: (1) Refunding all course tuition and fees to licensees. (2) Providing licensees with a suitable course to replace the course that was found in violation. (3) Withdrawal of approval of courses offered by such provider, presenter, or instructor for a period determined by the Commissioner. Statutory Authority G.S. 58-2-40; 58-33-130. ****************** l\ otice is hereby given in accordance with G.S. 150B-21.2 that the N.C. Department of Insurance intends to adopt rule cited as 1 1 NCAC 12 .0561. 1 he proposed effective date of this action is January 1, 1995. 1 he public hearing will be conducted at 10:00 a.m. on November 8, 1994 at the Dobbs Building, 3rd Floor Hearing Room, 430 N. Salisbury Street, Raleigh, NC 27611. MXeason for Proposed Action: To require fair computation of health insurance deductibles and co-payments when health care services are provid-ed at discounted fees negotiated by insurers and health care providers. Comment Procedures: Written comments may be sent to Randy Madry at 112 Cox Avenue, Raleigh, N. C. 27605. Oral presentations may be made at the public hearing. Anyone having questions should call Randy Madry at (919) 715-0194 or Ellen Sprenkel at (919) 733-4529. CHAPTER 12 - LIFE AND HEALTH DIVISION SECTION .0500 - ACCIDENT HEALTH: GENERAL NATURE .0561 DEDUCTIBLES AND COPAYMENTS BASED ON REAL COST (a) As used in this Rule: (1) "Health benefit plan" means any acci-dent and health insurance policy or certificate; a nonprofit hospital or medi-cal service corporation contract: a health maintenance organization sub-scriber contract; a plan provided by a multiple employer welfare arrangement; or a plan provided by another benefit arrangement. (2) "Health care provider" includes any person who, under Chapter 90 of the General Statutes is licensed, registered, or certified to engage jn the practice of or performs duties associated with any of the following: medicine, surgery, dentistry, pharmacy, optometry, mid-wifery, osteopathy, podiatry, chiroprac-tic, radiology, nursing, physiotherapy, pathology, anesthesiology, anesthesia, laboratory analysis, rendering assistance to a physician, dental hygiene, psychia-try, psychology; or a hospital as de-fined by G.S. 131E-76Q); or a nursing home as defined by G.S. 131E-10U6). (3) "Health insurer" means any health insurance company subject to Articles I through 63 of this Chapter, including a multiple employer welfare arrangement; any preferred provider plan; and any 9:14 NORTH CAROLINA REGISTER October 14, 1994 1071 PROPOSED RULES corporation subject to Articles 65 and 67 of this Chapter; that provides a health benefit plan. (b) If health insurers enter into contracts with health care providers for the provision of health care services at discounted rates of payment, and applicable deductibles or copavments paid by insureds are to be based upon a percentage of the fees for services rendered, the amounts of deduct-ibles and copavments shall be computed only on the negotiated discounted rates for the services rendered. (c) The following are deemed to be unfair and deceptive acts and practices in the business of insurance: (1) Attempting to settle a claim or attempt-ing to charge or to collect or charging or collecting copavments in amounts greater than those calculated in accor-dance with this Rule. (2) Attempting to pay or settle or paying or settling a claim based upon the calcula-tion of a deductible that is not calculat-ed in accordance with this Rule. (3) Attempting to calculate or calculating an annual, calendar, or lifetime maxi-mum amount payable on any amounts other than as set forth in this Rule. (4) Attempting to settle a claim involved in coordination of benefits in any manner not in accordance with this Rule. (5) Attempting to collect a claim against a stop-loss or excess health insurer in any manner inconsistent with this Rule. (d) Negotiating discounts with health care providers based upon the total volume of services and that is settled on a retrospective basis in which the discounts are not attributed to individual claimants. |s not deemed to be an unfair and deceptive act or practice in the business of insur-ance. Statutory Authority G.S. 58-2-40; 58-50-55; 58-63- 65; 58-65-1; 58-65-40; 58-65-140; 58-67-150. Notice is hereby given in accordance with G.S. 150B-21.2 that the N. C. Department of Insurance intends to adopt rules cited as 11 NCAC 16 .0601 - .0607. 1 he proposed effective date of this action is January 1, 1995. 1 he public hearing will be conducted at 10:00 a.m. on November 8, 1994 at the Dobbs Building, 3rd Floor Hearing Room, 430 N. Salisbury Street, Raleigh, NC 27611. Keason for Proposed Action: Establish standards and guidelinesfor health maintenance organization premium and rate filings with the Department of Insurance. Ksomment Procedures: Written comments may be sent to Walter James at 430 N. Salisbury Street, Raleigh, N.C. 27611. Oral presentations may be made at the public hearing. Anyone having ques-tions should call Walter James at (919) 733-3284 or Ellen Sprenkel at (919) 733-4529. CHAPTER 16 - ACTUARIAL SERVICES DIVISION SECTION .0600 - HEALTH MAINTENANCE ORGANIZATION FILINGS AND STANDARDS .0601 DEFINITIONS (a) The definitions contained in G.S. 58-67-5 are incorporated in this Section by reference. (b) As used in this Section: (1) "Adjusted community rating" means a rating method that allows an HMO to prospectively establish premium rates based upon the expected revenue re-quirements for individual groups and to take into account a group's historical utilization, intensity, or cost experience. (2) "Capitated" means covered health care services are provided by an HMO, medical group, or institution based on a prepaid fixed amount per enrollee regardless of the actual value of those services. (3) "Community rating" means a general method of establishing premiums for financing health care in which an individual's rate is based on the actual or anticipated average cost of health services used by all HMO members in a specific service area. (4) "Community rating by class" means a modification of community rating whereby individual groups can have 1072 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES 15) 16] m 181 m (10) 1LQ (12) (13) (14) (15) different rates depending on the composition by age, gender, number of family members covered, geographic area, or industry. "Contingency reserve" means the unassigned funds held over and above any known or estimated liabilities of an HMO for the protection of its enrollecs against the insolvency of the HMO, "Contract type" means a classification of members into categories usually based on enrolled dependent status. such as subscriber only, subscriber with one dependent, and subscriber with two or more dependents. "Credibility rating" means a rating method that establishes premium rates based upon the assignment of a level of credibility to an HMO group's historical utilization, intensity, or cost experience. "Fee-for-service" means payment for health care services is made on a retrospective basis based on the actual value of those services. "Full-service HMO" means an HMO that provides a comprehensive range of medical services, including hospital and physician services. "HMO expansion request" means all materials submitted for the purpose of obtaining authority to operate an HMO in a new or expanded geographic area in this State. "HMO model type" means classification that describes the manner in which physicians are affiliated with the HMO and the contractual and payment arrangements with hospitals; and includes types such as group, network, staff, independent practice association, and point-of-service. "HMO rate filing" means an initial HMO rate filing, and HMO expansion request or an HMO rate revision filing. "HMO rate revision filing" means all materials submitted for the purpose of making a revision to an existing schedule of premiums. "Incurred loss ratio" means the ratio of total medical expenses including the change in claim reserves to total earned premium revenues. "Initial HMO rate filing" means all materials submitted for the purpose of obtaining a certificate of authority to operate an HMO in this State. (16) "Qualified actuary" means an individual who is an Associate or Fellow of the Society of Actuaries or a Member of the American Academy of Actuaries and has at least five years of substantive experience in the managed care field. (17) "Single-service HMO" means an HMO that provides one specific type of medical service, such as vision or dental care. Statutory Authority G.S. 58-67-50(b); 58-67-150. .0602 HMO GENERAL FILING REQUIREMENTS (a) All schedules of premiums for enrollee coverage for health care services and amendments to schedules of premiums that are filed with the Department shall indicate whether the filing is an original or amended filing. All data requirements prescribed by this Section must be submitted within 30 days after the date that the filing is stamped received, or the filing will be deemed to be disapproved. (b) All filings shall be accompanied by: (1) A certification by a qualified actuary that the premiums applicable to an enrollee are not individually determined based on the status of his health and that such premiums are established in accordance with actuarial principles for various categories of enrollees and are not excessive, inadequate, or unfairly discriminatory. (2) Actuarial data supporting the schedule of premiums as prescribed by 11 NCAC 16 .0603. 11 NCAC 16 .0604. U NCAC 16 .0605 and U NCAC 16 .0606. (c) All data and schedules that are required to be filed by this Section shall be filed in duplicate. Statutory Authority G.S. 58-67-50(b); 58-67-150. .0603 HMO RATE FILING DATA REQUIREMENTS All HMO rate filings shall include the following data: (1) Identification and a brief description of the HMO model type. (2) Identification of the enrollee issue basis, whether individual or group. (3) Identification and a description of the 9:14 NORTH CAROLINA REGISTER October 14, 1994 1073 PROPOSED RULES type of rating methodology, such as community rating, community rating by class, adjusted community rating, credibility rating, or other. (4) Identification and listing of al] rate classification factors, such as age, gender, geographic area, industry, group size, or effective date. (5) A description and numerical demonstration of the development of the capitated rate, including a listing of sources used. (6) A description and numerical demonstration of the development of any portion of the premium rate developed for fee-for-service claims, including a listing of sources used. (7) A brief description of the claim reserving methodology and the incorporation of claim reserves into the premium rate. (8) A description of the procedure and identification of the assumptions used to convert the total per member per month cost to the proposed premium rates; including assumptions for the distribution of contracts by contract type, the ratios of two-person and family rates to the single rate, and the average number of members in each contract type. (9) The projected monthly incurred loss ratios for the period of time equal to the number of months for which the rates will be in effect, plus the number of months the rates will be guaranteed. (10) The percentage of the p_er member per month premium for each loading factor, such as administration or overhead expenses. marketing, broker commissions, surplus or capital, contingency reserve, reinsurance, and profit margin. Statutory Authority G S. 58-67-50(b); 58-67-150. .0604 INITIAL HMO RATE FILING DATA REQUIREMENTS All initial HMO rate filings shall include, in addition to the data required by 1 1 NCAC 16 .0603, the following data: (1) A comparison of the rates to other HMO rates with the same effective date in North Carolina for similar benefit plans. (2) A completed diskette, provided by the Actuarial Services Division of the Department, containing a three-year financial projection that details total membership, revenues and expenses, and that includes a statement of cash flow, a balance sheet, and a statement of working capital and net worth. Statutory Authority G.S. 58-67-10(d)(l); 58-67- 50(b); 58-67-150. .0605 HMO EXPANSION REQUEST DATA REQUIREMENTS All HMO expansion requests shall include, in addition to the data required by 11 NCAC 16 .0603, the following data: (I) A comparison of the actual financial results, including total membership, revenues, and expenses, to the projected financial results for at least the most recent 12-month period preceding the effective date of the proposed expansion. £2} A completed diskette, provided by the Actuarial Services Division of the Department, containing a three-year financial projection that details total membership, revenues, and expenses, and that includes a statement of cash flow, a balance sheet, and a statement of working capital and net worth for both the existing service area and the proposed area of expansion. Statutory Authority G.S. 58-67-10(d)(l); 58-67- 50(b); 58-67-150. .0606 HMO RATE REVISION FILING DATA REQUIREMENTS All HMO rate revision filings shall include, in addition to the data required by 11 NCAC 16 .0603. the following data: (1) The scope and reason for any rate revision including a brief description of the methodology employed to determine the revised rates, such as budgetary or cost method, fee-for-service method, or other. (2) The number of months the rates will be in effect and the number of months the rates will be guaranteed. (3) The dates and percentage amounts of all prior and requested rate revisions in North Carolina; and quarterly rate increases shall be shown in comparison to both the immediately preceding quarter and the corresponding quarter of the previous 12-month period. 1074 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES £4} The North Carolina average annual per member per month premium revenue before and after the rate revision. (5) Identification of any actual versus expected utilization rates or medical costs that may be used to justify a premium rate revision. (6) Identification, justification, and derivation of any trend factor used to project medical expenses. (7) A comparison of the actual financial results, including total membership, revenues, and expenses, to the projected financial results for at least the most recent 12-month period preceding the effective date of the revised rates. (8) A completed diskette, provided by the Actuarial Services Division of the Department, that contains a financial projection for the period of time equal to the number of months the rates will be in effect plus the number of months the rates will be guaranteed, that details total membership, revenues, and expenses, and that includes a statement of cash flow, a balance sheet, and a statement of working capital and net worth. Statutory Authority G.S. 58-67-50(b); 58-67-150. .0607 HMO INCURRED LOSS RATIO STANDARDS (a) The following apply to all HMO rate revision filings: ID Premium rates are deemed to be inadequate if any of the monthly incurred loss ratios projected for North Carolina over the period required by 1 1 NCAC 16 .0606(8) are greater than: (A) 85.0% for a full-service HMO issued on a group basis. (B) 75.0% for a single-service HMO issued on a group basis. (C) 75.0% for a full-service HMO issued on an individual basis. (D) 65.0% for a single-service HMO issued on an individual basis. 121 Premium rates are deemed to be exces- (A) im sive if any of the monthly incurred loss ratios projected for North Carolina over the period required by 11 NCAC 16 .0606(8) are less than: 80.0% for a full-service HMO issued on a group basis. 70.0% for a single-service HMO issued on a group basis. (C) 70.0% for a full-service HMO issued on an individual basis. (D) 60.0% for a single-service HMO issued on an individual basis. (b) The following apply to all initial HMO rate filings and HMO expansion requests : (1) Premium rates are deemed to be inade-quate if any of the monthly incurred loss ratios projected for North Carolina over the last 12 months of the three year financial projection are greater than: (A) 85.0% for a full-service HMO issued on a group basis. (B) 75.0% for a single-service HMO issued on a group basis. (C) 75.0% for a full-service HMO issued on an individual basis. (D) 65.0% for a single-service HMO issued on an individual basis. (2) Premium rates are deemed to be exces-sive if any of the monthly incurred loss ratios projected for North Carolina over the last 12 months of the three year financial projection are less than: (A) 80.0% for a full-service HMO issued on a group basis. (B) 70.0% for a single-service HMO issued on a group basis. (C) 70.0% for a full-service HMO issued on an individual basis. (D) 60.0% for a single-service HMO issued on an individual basis. Statutory Authority G.S. 58-67-50(b); 58-67-150. TITLE 12 - DEPARTMENT OF JUSTICE Notice is hereby given in accordance with G.S. 150B-21.2 that the North Carolina Sheriffs ' Educa-tion and Training Standards Commission intends to amend rule cited as 12 NCAC 10B .2105. L he proposed effective date of this action is January 1. 1995. Instructions on How to Demand a Public Hearing (must be requested in writing within 15 days of notice): Any person interested in this proposed rule amendment may demand a Public Rule-Making Hearing by submitting a written request for such hearing to the Commission within 15 days of 9:14 NORTH CAROLINA REGISTER October 14, 1994 1075 PROPOSED RULES publication of this notice. This request should be directed to Joan Neuner, Director, at the address listed below. MXeason for Proposed Action: The Commission has previously filed this rule, making modifications to .2105(a). The staff noted after the rule-making hearing that an oversight was made in that we failed to modify .2105(b) to be consistent with the changes in .2105(a). We are therefore filing to make this minor technical change to remove the "30 day" requirement from .2105(b). Comment Procedures: Any person interested in this proposed rule amendment may present written comments relevant to the proposed action to the Commission by November 14, 1994. Written comments should be directed to Joan Neuner, Director, at the address listed below. This proposed rule amendment is available for public inspection and copies may be obtained at the following address: Sheriffs' Standards Division, N.C Dept. of Justice, P.O. Drawer 629, Raleigh, NC 27602. CHAPTER 10 - N.C SHERIFFS' EDUCATION AND TRAINING STANDARDS COMMISSION officer has complied with the require-ments of 12 NCAC 10B .2103 and .2104; and (2) the justice officer and the sheriff re-ceive from the Commission documenta-tion that the Commission has terminated the suspension and reinstated the certifi-cation to the justice officer. (d) Any justice officer previously unauthorized to carry a weapon but whose status changed to "authorized to carry a weapon," must comply with the provisions set out in 12 NCAC 10B .2103 and .2104; and may not carry a firearm until: (1) the sheriff forwards to the Commission documentary evidence verifying that the officer has complied with the require-ments of 12 NCAC 10B .2103 and .2104; and (2) the justice officer and the sheriff re-ceive from the Commission documenta-tion that the Commission has amended the officer's status to "authorized to carry a weapon" and all certification files reflect the same. Statutory Authority G.S. 17E-4; 17E-7. TITLE 13 - DEPARTMENT OF LABOR SUBCHAPTER 10B - NC SHERD7FS' EDUCATION AND TRAINING STANDARDS COMMISSION SECTION .2100 - JUSTICE OFFICERS' FIREARMS IN-SERVICE TRAINING REQUALIFICATION PROGRAM .2105 FAILURE TO QUALIFY (a) Justice officers who fail to qualify pursuant to Rule .2104 shall immediately surrender their weapons to the sheriff, upon his request, and shall have 30 days in which to obtain the qualification score required in 12 NCAC 10B .2104. (b) Failure to qualify within the 30 day time period allowed in 12 NCAC 10B .2105(a) will result in the summary suspension of the justice officer's certification by the Commission. (c) No justice officer summarily suspended under Paragraph (b) of this Rule and in compliance with 12 NCAC 10B .0206(a)(3) may work as a certified justice officer until: (1) the sheriff forwards to the Commission documentary evidence verifying that the iSotice is hereby given in accordance with G.S. 150B-21.2 that the North Carolina Department of Labor intends to amend rules cited as 13 NCAC 13 .0101, .0201 - .021 3, .0301 - .0304, .0306, .0401 - .0403, .0405 - .0406, .0409 - .0410, .0413 - .0416, .0421, .0501, .0504, .0801, .0803 - .0805, . 0807 - . 0809, . 0812 - . 0813, . 0815; adopt . 0103, .0305, .0404, .0407 -.0408, .0411, .0420; repeal .0502 - .0503, .0601 - .0609, .0810, .0814 and .0816. 1 he proposed effective date of this action is January 1, 1995. 1 he public hearing will be conducted at 9:30 a.m. on November 3, 1994 at the NC Department of Agriculture Bldg. , Room 359, 1 W. Edenton Street, Raleigh, NC 27601. Reason for Proposed Action: To update the Uniform Boiler and Pressure Vessel Regulations. The N. C Department of Labor is submitting 1076 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES proposed rules regarding the Uniform Boiler and Pressure Vessel Act. As part of the process of revising these rules, the Department proposes a rearrangement of the numbers in certain sections. This proposal is made for purposes of clarifying the rules. The proposed changes are mainly reflected in Section . 0400 with one such change in Section .0300. (comment Procedures: Please submit your com-ments to Mr. Scott Templeton, APA Coordinator, NC Dept of Labor, 4 W. Edenton Street, Raleigh, NC 27601, FAX (919) 733-6197; Telephone (919) 733-0368 by November 14, 1994. You may pres-ent written or oral comments at the hearing; however, time limits may be imposed by the Chair. CHAPTER 13 - BOILER AND PRESSURE VESSEL SECTION .0100 - DEFINITIONS .0101 DEFINITIONS The following definitions are applicable through-out this Chapter: (1) (3) "Appurtenance" means any control, fitting, appliance or device attached to or working in conjunction with the boiler or pressure vessel proper. NOTE: The term "appurtenance " is used in Section III of the ASME Code (Nuclear) in a manner—different—from—the — definition herein.—Section III i s incorporated into these — Rules—by — reference—(see—R-u4e .0401).—When construing the provisions of Section HI, apply the special use of the term therein. 121 f»"ASME Code" means all sections of the Boiler and Pressure Vessel Code of the American Society of Mechanical Engineers that have been adopted by the Boiler and Pressure Vessel Division. (3) "Audit" means activities performed by the Director, his designee, or a deputy inspector other than those identified as inspections, including: (a) reviews and surveys for ASME and National Board stamp issuance and renewal: fb) audits performed on an inspector at the location of a manufacturer or repair organization as may be required by the ASME Code, National Board Inspection Code, or National Board Rules and Regulations; and (c) audits pursuant to evaluation for the issuance of North Carolina Specials. (4) "Automatically fired boiler" means a boiler which does not require a constant attendant for the purpose of introducing fuel into the combustion chamber. (5) {^"Authorized inspection agency" means ene—©f an organization employing inspectors holding valid North Carolina Commissions and National Board Commissions, including the following: (a) a department or division established by a state, commonwealth, or municipality of the United States, or a province of Canada, which has adopted one or more sections of the ASME Code (of which one — shall—be — Section—V)—and — whose inspectors hold valid commissions with the — National—Board—ef- — Boiler—a«d Pressure Vessel Inspectors; the Department of Labor; (b) an inspection agency of an insurance company licensed to write boiler and pressure vessel insurance and whose inspectors hold valid North Carolina commissions ; or (c) an owner-user inspection agency that meets the requirements of G.S. 95-69.15. (6) "Board" means the North Carolina Board of Boiler and Pressure Vessel Rules. £71 <4)"Boiler," as defined in G.S. 95-69. 9(b), includes the following types of boilers: (a) "Power boiler" means a boiler in which steam or other vapor is generated at a pressure of more than 15 psig and includes a high—pres s ure, high-temperature water boiler and an unfircd steam boiler; fb) "High pressure, high temperature water boiler" means a water boiler operating at pressures exceeding 160 psig or temperatures exceeding 250 °F or both at or near the boiler outlet; fe) "Unfircd— s team—boiler"—means—an unfired pressure vessel in which steam pressure is generated by the application of heat from an indirect source; (b) fd)"Heating boiler" means^ £il a steam boiler operated at pressures not exceeding 15 psig^j or (ii) a hot water heating boiler operated at pressures not exceeding 160 psig and 9:14 NORTH CAROLINA REGISTER October 14, 1994 1077 PROPOSED RULES temperatures not exceeding 250°F, at or near the boiler outlet; and outlet, and supplying heated water, normally used for building heat applications (hydremic boiler), in which water is returned to the boiler from the piping system; fe) a " Hot hot water supply or storage vessel boiler- means—a — boiler—ef indirectly fired pressure vessel completely—filled—with — water that furnishes hot water to be used externally to itself (domestic water boiler) at pressures not exceeding 160 psig or temperatures not exceeding 250 °F at or near the hot water outlet. outlet; and (iv) a potable hot water heater operating at pressures not exceeding 160 psig and temperatures not exceeding 210°F. at or near the boiler outlet, and supplying water intended for potable use only, (c) "Steam boiler" means a power boiler or heating boiler which generates steam or other vapor within the internal mechanism or at the boiler outlet during operation; (d) "Water boiler" means a power boiler or heating boiler which does not produce steam or other vapor during operation. The term water boiler also applies to boilers heating liquids other than water which do not create a vapor during operation. m 'Boiler blowoff" means that system associated with the rapid draining of boiler water to remove concentrated solids which have accumulated as a natural result of steam generation. This term also applies to the blowoff for other boiler appurtenances, such as the low-water fuel cutoff. (9) (§}"Boiler or pressure vessel proper" means the internal mechanism, shell, and heads of a boiler or pressure vessel terminating at: (a) the first circumferential joint for welded end connections; (b) the face of the first flange in bolted flange connections; or (c) the first threaded joint in threaded connections. Note: Superheaters, economizers and other pressure parts connected directly to the boiler or pressure vessel without inter-vening valves are part of the boiler or pressure vessel proper. (10) {^"Certificate inspection" means an inspection, the report of which is used by the Director as justification for issuing, withholding or revoking the inspection certificate, and may consist of an internal or a general inspection . The term certifi-cate inspection also applies to the exter-nal inspection performed in accordance with these Rules whether or not a certifi-cate is intended to be issued as a result of the inspection. (1 1) (6) "Certificate of competency" means the certificate issued to a person who has passed the inspector's examination given by the Board of Boiler and Pressure Vessel Rules and who is employed by an Authorized Inspection Agency. (12) "Commissioner" means the Commission-er of the North Carolina Department of Labor. (13) (40) "Condemned boiler or pressure ves-sel" means a boiler or pressure vessel: (a) that has been found not to comply with G.S. Chapter 95, Article 7A, and/or these Rules; (b) that constitutes a menace to public safety; and (c) that cannot be repaired or altered so as to comply with G.S. Chapter 95, Arti-cle 7A, and these Rules. (14) "Coil type water tube boiler" means a boiler having no steam space, such as a steam drum, whereby the heat transfer portion of the water containing space consists only of a coil of pipe or tubing. (15) "Deputy inspector" means a boiler and pressure vessel inspector employed by the Division. (16) (44)"Design criteria" means ASME and divisional Divisional requirements relat-ing to the mode of design and construc-tion of a boiler or pressure vessel. "Factor of safety" means the ratio of allowable stress to strength. (4-3)"Division" means the Boiler and Pressure Vessel Division of the North Carolina Department of Labor. fl-£)" External inspection" means an in-spection of the external surfaces and appurtenances of a power boiler or pres-sure vessel while it is in operation . An external inspection may entail the "shut- 07} 18) 1078 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES am (20) (21) (22) (23) (24) (25) (26) fa) fbl £d) (27) ting down" of a boiler or pressure vessel while it is in operation, including inspec-tion of internal surfaces. If the inspector determines this action is warranted. "Hydropneumatic storage tank" means a pressure vessel used for storage of water at ambient temperature and where a cushion of air is contained within the vessel. "Imminent danger" means any condition or practice in any location that a boiler or pressure vessel is being operated which is such that a danger exists, and which could reasonably be expected to cause death or serious physical harm immedi-ately or before the imminence of such danger can be eliminated through the enforcement procedures otherwise pro-vided by these Rules. "Inspector" means an inspector in posses-sion of a valid North Carolina Commis-sion and a National Board Commission including a deputy inspector, an insur-ance inspector, or an owner/user inspec-tor. "Insurance inspector" means the special inspector employed by an Insurance Company, and holding a valid North Carolina Commission and National Board Commission. (15)" Internal inspection" means as com-plete an examination as can reasonably be made of the internal and external surfaces and appurtenances of a power boiler while it is shut down. "Maximum allowable working pressure" means the lesser of the maximum allow-able working pressure as determined by the manufacturer in accordance with the requirements of the ASME code, or as determined by the Director in accordance with these Rules. {+8)" Menace to public safety" means a boiler or pressure vessel that cannot be operated without a substantial risk of injury to persons and property. "Miniature boiler" means a boiler which does not exceed any of the following: 16 inch inside shell diameter; 20 square feet of heating surface (does not apply to electrically fired boilers); 5 cubic feet volume; and 100 psi maximum allowable working pressure. {+9)"National Board" means The Nation-al Board of Boiler and Pressure Vessel Inspectors, 1055 Crupper Avenue, Co-lumbus, Ohio 43229, whose membership is composed of the chief inspectors of government jurisdictions who are charged with the enforcement of the provisions of the ASME Code. (28) (8) "Commiss ion, National—Board "Na-tional Board Commission" means the commission issued by the National Board to a holder of a certificate of competency who desires to make shop inspections or field inspections in accordance with the National Board bylaws and whose cm 1 ploycr submits the in spector's application to the national board for such commis sieft has fulfilled the requirements of the National Board and who is in the full time employ of an Authorized Inspection Agency. (29) {39)"National Board Inspection Code" means the inspection handbook published by the National Board, as adopted by the division Division . (30) £4-6)" Nonstandard boiler or pressure vessel" means: (a) power boilers contracted for or installed before December 7, 1935; (b) heating boilers contracted for or in-stalled before January 1, 1951; (c) pressure vessels contracted for or in-stalled before January 1, 1976; (d) non ASME Code constructed hydro - pneumatic storage tanks containing water under pressure at ambient tem-peratures contracted for or installed before January 1, 1986; ftftd (e) unfircd—pressure—vessels—used—in air conditioning/refrigeration system s operated entirely full of water or other liquid which—is not materially—more hazardous water contracted for or in stalled before July 1 , —1985, provided the owner or user has registered the ves sel with the divi sion prior February 28 , 1987, and the manufacturer of such vessel provides an extended warranty or similar protection when the Commis sioncr determines that such vessel may be operated without serious threat to life or property.—At the time the own cr or user registers the vessel he shall provide full documentation regarding the date the vessel was contracted for, the date the vessel was installed, the 9:14 NORTH CAROLINA REGISTER October 14, 1994 1079 PROPOSED RULES Hi (31 (32) (33) (34) age of the ves sel, the date the owner or user accepted the vessel, a oopy of any in surance policy covering the vessel and a full explanation of the location of the vessel including its proximity to electric wiring or conduits and an analysis of any possible damage or injury to per sens—ef — property—that — would—occur should the vessel rupture.—Following such registration and application, the Commissioner shall make hi s decision concerning—the—type — of warranty—or similar protection that will be required within 30 days immediately following the receipt of the registration and appli cation, boilers or pressure vessels for which the ASME Code is not intended to apply, other than those boilers and pressure vessels to which the term North Carolina Special applies; and NOTE: T-h4s — classification—includes ASME Code constructed boiler and pres sure ves sels installed or contracted for prior to the enactment of applicable legi s lation regulating its use. hydropneumatic storage tanks installed at a distance of not less than 250 feet from a building of public assembly, apartment house, or residence, and provided with overpressure protection. "Normal working hours" means between (35) the hours of 6^00 AN1 and 8^0 PM. Monday through Friday, except for state recognized holidays. (9)"Commission, North Carolina "North Carolina Commission " means the com-mission card issued by the Board, to holders of certificates of competency a National Board Commission, authorizing them to conduct shop and field inspec-tions in this State. "NPS" means nominal pipe size. (24)"Nuclear energy system" means and refers to any closed vessel in which water is heated, steam is generated, steam is superheated, or any combination thereof under pressure or vacuum for use exter-nally to itself by the direct application of heat from nuclear energy and associated components, vessels, piping systems, pumps, valves, storage tanks, and appur tenances , as "appurtenances" is used in Section HI of ASME Code, appurtenanc-es. "Operating pressure" means the pressure of the lowest set safety valve installed on the boiler or pressure vessel. (36) (33)"Owner or user" means any person or legal entity responsible for the safe operation of any boiler or pressure vessel installed in this State. This term shall also apply to a contractor, installer, or agent of the owner or user, as applicable. (33)"Pressure piping" means piping including welded piping, external to power boilers from the boiler proper to the required stop valve(s). {24)"Pressure vessel proper"; see boiler or pressure vessel proper. (24)"PSIG" means pounds per square inch gauge. (37) (38) (39) (40> (1 4)"Gencral in spection"—means as com plctc an examination as can reasonably be made of the internal and external surfaces and appurtenances of a heating boiler or pressure vessel preferably while it i s in operation. A general—inspection may entail the "shutting down" of a heating boiler or pressure vessel—for a closer examination if an authorized inspector feels this action is warranted. "Reinspec-tion" means as complete an examination as is necessary to verify that any repair or corrective action required as a result of a certificate inspection is completed. (41) "Safety valve" means any safety valve, safety relief valve, pressure relief valve, or non-reclosing device intended to pre-vent overpressurization of a boiler or pressure vessel. (42) {36)"Shop inspection" means an inspec-tion performed by a state an inspector pursuant to an inspection service agree-ment whereby the fabrication process tor a boiler or pressure vessel is inspected. or the repair or alteration of a boiler or pressure vessel is observed to ensure compliance with ASME and the National Board. (43) {33)"Special inspection" means any in-spection performed by the state a deputy inspector other than a regularly scheduled inspection and includes instances where the original inspection was rescheduled due to the owner's or user's failure to prepare the boiler or pressure ves sel after notification . Special inspection also includes the performance of an inspection by a deputy inspector which requires that the inspector make a special trip to meet 1080 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES the needs of the individual or organiza-tion requesting the inspection, including performing certificate inspections during hours other than normal working hours, and inspection of field repairs and alter-ations. Statutory Authority G.S. 95-69.11; 95-69.14. .0103 INCORPORATED STANDARDS The following standards are incorporated by reference elsewhere in these Rules. These stan-dards are available for public inspection at the office of the Director and may be purchased at the address in this Rule. The prices listed in this Rule reflect the price as of the date of adoption of this Rule. For current prices, the organization listed in this Rule should be contacted. (1) National Board Inspection Code (NBIC) National Board of Boiler and Pressure Vessel Inspectors, 1055 Crupper Avenue, Columbus, Ohio 43229 phone number: (614) 888-8320 cost: fifty dollars ($50.00). (2) American Society of Mechanical Engi-neers (ASME) Boiler and Pressure Vessel Code American Society of Mechanical Engi-neers, United Engineering Center, PO Box 3199, Grand Central Station. New York. New York 10163 phone number: 1-800-THE-ASME. cost: four thousand seven hundred and fifty three dollars ($4,753.00). (3) North Carolina State Building Code North Carolina Department of Insurance. Code Council Section. PO Box 26387, Raleigh. NC 27611 phone number: (919) 733-3901 cost: two hundred and fifty dollars ($250.00). Statutory Authority G.S. 95-69. 11; 95-69. 14. SECTION .0200 - ADMINISTRATION .0201 NAME: ADDRESS (a) The Boiler and Pressure Vessel Division, which administers the provisions of Article 7A of G.S. Chapter 95, is located in the Raleigh office of the department on the corner of Edenton and Salisbury Streets. (b) Address correspondence to: Boiler and Pressure Vessel Division North Carolina Department of Labor 4 West Edenton Street Raleigh, North Carolina 27601 Telephone (919) 733-2383 Fax (919) 733 6197 733-0917. Statutory Authority G.S. 95-4; 95-69.12. .0202 INSPECTOR QUALIFICATION (a) Applicants for a certificate of competency shall sati sfy the requirement of G.S. 95 69.15(c). Inspectors performing certificate inspections shall be in possession of a valid North Carolina Commission and National Board Commission. Inspectors performing nuclear inservice inspection shall be in possession of a valid North Carolina Commission and shall meet the additional requirements of the ASME Code and the National Board, including possession of the applicable endorsements to the National Board Commission. (b) A Certificate of Competency shall be issued to an inspector who satisfactorily passes an examination written and graded by the National Board and administered by the Board. The Certificate of Competency authorizes an individual to apply to the National Board for a National Board Commission. In order to take the North Carolina—Board of Boiler and—Pressure Vessel Rules ' examination [see G.S. 95-69. 15(c)(1)], an applicant shall meet one of the following qualifications: (1) a degree in mechanical engineering plus one year of experience in design, construction, operation, or inspection of high-pressure boilers and pressure vessels; (2) a degree in a branch of engineering, other than mechanical engineering plus two years of experience in construction, operation, or inspection of high-pressure boilers and pressure vessels; or (3) the equivalent of a high school education plus three years experience: (A) in high-pressure boiler and pressure vessel construction or repair; (B) as an operating engineer in charge of high-pressure boiler operations; or (C) as an inspector of high-pressure boilers and pressure vessels. (c) Applications for the examination are available from the director—and Director- Completed applications shall contain an accurate educational and employment history. (d) The Board of Boiler and Pressure Vessel 9:14 NORTH CAROLINA REGISTER October 14, 1994 1081 PROPOSED RULES Rules' examination is prepared and graded by the National Board and : (1) covers the construction, installation, operation, maintenance and repair of boilers and pressure vessels and their appurtenances; (2) is given on the first Wednesday and one-half day Thursday in March, June, September, and December at a site selected by the director; and Director, provided that a minimum of four applicants are registered; and (3) is administered upon payment to the Department of Labor of a fee of thirty five dollars ($35.00) fifty dollars ($50.00) which is also required when the examination is retaken by an unsuccessful applicant. (e) Success ful—applicants—w4H—be — issued certificates of competency by the board, s igned by the chairperson of the board and the director, when—employed—by — &h—authorized—inspection agency. A grade of 70 percent or greater must be attained to achieve a passing grade on the examination. (f) When requested by the employing Authorized Inspection Agency, a North Carolina Commission, bearing the signature of the chairperson of the Board, shall be issued to persons holding a valid National Board Commission, upon payment of the applicable fee. Commission shall be returned by the inspector to the division Division upon termination of employment. (e) A North Carolina commission Commission may be suspended or revoked by the board, in accordance with G.S. 95-69.17 for incompetence, untrustworthiness or willful falsification of any statement in an application or inspection report. The Board shall give notice of the commencement of proceedings for suspension or revocation of a commission pursuant to G.S. 150B-23. A North Carolina Commission may be suspended prior to the hearing if the Board determines that the public health, safety or welfare requires this action. In this case, the proceedings will be promptly commenced and determined. The Board's decision regarding the competency of an inspector shall be determined after consideration of the knowledge, skill, and care ordinarily possessed and employed by boiler and pressure vessel inspection personnel in good standing. Industry custom and practice shall be considered but are not determinative. Failure to perform the inspections in accordance with these rules shall constitute incompetence. The inspector will be given the opportunity to show that he is_ performing his duties in a competent manner and that suspension or revocation is unwarranted. If the inspector believes that the decision of the Board is not warranted, he shall file for a judicial hearing pursuant to Article 4 of G.S. 150B. Statutory Authority G.S. 95-69.11; 95-69.15. Statutory Authority G.S. 95-69.11; 95-69.15. .0203 NORTH CAROLINA COMMISSION (a) When requested by the employer, a North Carolina commission card Commission , bearing the signatures signature of the chairperson of the board and director , will be issued by the board Board to persons meeting the qualifications in G.S. 95 69.15(a) and G.S. 95 69.15(c) holding a valid National Board Commission. (b) Requests for a North Carolina commission eafd Commission are processed upon proof of a certificate ef- — competency National Board Commission issued by the National Board and payment of a ten dollar ($10.00) fee fifteen dollar ($15.00) fee to the Department of Labor. (c) North Carolina commission—cards Commissions are valid through December 31, at which time each inspector the inspector's employer shall submit a renewal application and a ten dollar ($10.00) fee fifteen dollar ($15.00) fee to the Department of Labor . (d) The North Carolina commission—eafd .0204 CONFLICT OF INTEREST An inspector shall not engage in any profit-making enterprise relating to boilers, pressure vessels, nuclear energy systems, or their appurtenances, aside from his or her regular employment as an inspector nor engage in ef any conduct that would otherwise constitute a conflict of interest. Statutory Authority G.S. 95-69.11; 95-69.14. .0205 OWNER-USER INSPECTION AGENCY (a) A company seeking to institute—a* owner user inspection agency perform inspections of its own boilers and pressure vessels shall file an application with the director Director and obtain approval from the Board of Boiler and Pressure Vessel Rules . (b) The company shall, in its application, designate an experienced technician or a supervisor 1082 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES who shall be a registered professional engineer within its employ as its inspector supervisor , who, upon approval of the application, shall: (1) ascertain that the company's inspectors, pursuant to Rules .0202 and .0203 are issued certificates of competency and owner-user commission cards; (2) supervise inspections of boilers and pressure vessels and see that an inspection report, signed by the owner-user inspector, is filed at the equipment site; (3) promptly notify the director Director of any unsafe boiler or pressure vessel which presents a condition of imminent danger; (4) maintain a master file of inspection records which shall be made available for examination by the Director or his representative during business hours : (A) identifying each boiler and pressure vessel by serial number and abbreviated description; and (B) showing the date of the last and next scheduled inspection; and {€) — made available for examination by the director or his representative during business hours; and (5) fi4e7 on a date mutually agreed upon with the director Director, file an annual statement signed by the supervising inspector supervisor , showing the number of pressure vessels and certifying that each inspection was performed pursuant to these Rules, accompanied by a filing fee of fifteen dollars ($15.00) per vessel. (c) Inspection certificates are not required for boilers and pressure vessels inspected under an owner-user program. Statutory Authority G.S. 95-69.11; 95-69.15. .0206 OWNER OR USER TO NOTIFY DIRECTOR OF ACCIDENT (a) When an accident renders a boiler, pressure vessel, or nuclear energy system inoperative, or causes damage to property, personal injury, or death, the owner or user shall immediately notify the director Director in writing by the most expedient means available. This notification shall be followed by a detailed written description and describe the accident in detail . {&) — In ease of a serious accident involving personal injury or explosion, the owner or user shall immediately notify the—director by telephone or telegraph. {e)£b) No person shall remove or disturb the boiler, pressure vessel, or nuclear energy system, or any of its parts, before an authorized inspection investigation by the Director has been made, except for the purpose of conserving life or limiting consequential damages. (c) Insurance inspectors who elect to investigate an accident may do so after the Director has concluded his investigation. Any insurance inspector who elects to investigate an accident shall submit an accident report to the Director within 10 days of the completion of the investigation. Statutory Authority G.S. 95-69.11; 95-69.14. .0207 INSPECTION REPORTS Special Inspectors shall file: (1) inspection reports with the director Director within 30 K) days after each certificate inspection; and (2) inspection reports with the director Director regarding all hazardous conditions of imminent danger, or any condition that would result in the insurance company's refusal to issue or continue an insurance policy on the boiler, pressure vessel, or nuclear energy system, immediately. Statutory Authority G.S. 95-69.11; 95-69. 14. .0208 INSURANCE COMPANIES TO NOTIFY DIRECTOR (a) All insurance companies shall notify the director Director by reference to the applicable North Carolina serial number and owner/user's name and address within 30 K) days regarding actions taken on all boiler, pressure vessel, or nuclear installation risks, including but not limited to: (1) the issuance of a policy; (2) the cancellation of a policy; ef (3) the non-renewal or suspension of a policy because of unsafe conditions; or (4) removal of a boiler or pressure vessel from service. (b) Should the inspector, during the course of making an inspection, find a condition of imminent danger, he shall immediately notify the Director by telephone or fax in order that steps might be taken to remove the vessel from service. (c) The inspector shall notify the Director 9:14 NORTH CAROLINA REGISTER October 14, 1994 1083 PROPOSED RULES immediately upon becoming aware of an accident which renders a boiler, pressure vessel, or nuclear energy system inoperative or causes damage to property, personal injury, or death. Statutory Authority G.S. 95-69.11; 95-69.14. .0209 CONTRACTORS TO NOTIFY DIRECTOR All contractors installing boilers or pressure vessels in any public building or in an apartment house of s ix families or more subject to inspection in accordance with these Rules shall report the installation within 30 days to the director, notify the Director and request a certificate inspection not less than 30 days prior to placing equipment in operation. Equipment shall not be operated prior to the owner or user obtaining an inspection certificate. Payment of the initial inspection fee shall be the responsibility of the requesting contractor. Statutory Authority G.S. 95-69.11; 95-69. 14. . 02 1 SHOP INSPECTION AND NATIONAL BOARD R STAMP QUALIFICATION AUDITS (a) Manufacturers seeking to employ state deputy inspectors to inspect their fabrication process for boilers, pressure vessels, and nuclear energy system components, pursuant to the ASME Code Code, shall enter into a written agreement with the North Carolina Department of Labor for this purpose. fb) The Department of Labor shall perform the qualification audit for issuance of the National Board R symbol stamp pursuant to the National Board Inspection Code as adopted, except as modified herein. (c) The Department of Labor shall not perform the qualification audit for those individuals or organizations for which the Department of Labor provides inspection services, for those individuals and organizations in possession of or concurrently applying for an ASME Code symbol stamp, or for those individuals or organizations which specifically request the audit be performed by the National Board. (d) An audit to be performed by the Department will be scheduled upon receipt of request by the National Board. Payment of the fee as required in Rule .0213 of this Section shall be the responsibility of the individual or organization being audited. Should an applicant not be successful in obtaining accreditation, the applicable fee shall be paid before a new audit is performed. Statutory Authority G.S. 95-69.11; 95-69.14. .0211 CERTD7ICATE INSPECTIONS (a) An authorized inspector shall inspect all boilers and pressure vessels at the time of installation and at regular intervals thereafter, as provided in this Rule. (b) Subject to the exceptions in Paragraphs (c) and (d) of this Rule, and after seven days notice is given to the owner or user, an authorized inspector shall conduct an internal inspection for a power boiler at the time of installation and annually thereafter. S« Three to nine months after the interna] inspection, an external inspection shall be performed. Issuance of the inspection certificate shall be based on the results of the internal inspection. (c) In place of the first internal inspection for a new power boiler being placed into service for the first time , an inspector may conduct a general an external inspection if the inspector feel s determines that data sufficient to determine compliance with the rules of this Chapter these Rules can be gathered from a general an external inspection. (d) Miniature boilers- and boilers, coil-type watertube boilers boilers, and boilers heating a fluid other than water which do not produce steam or vapor operating as power boilers shall undergo a — general an external inspection annually. Miniature boilers and boilers, coil-type watertube boilers and boilers heating a fluid other than water operating as heating boilers shall undergo a general an external inspection biennially. (e) Heating boilers and pressure vessels.! except hydropneumatic storage tanks, shall undergo a general an external inspection biennially. (f) Owner-user inspectors shall conduct inspections for boilers and pressure vessels as prescribed in this Rule. fg} — Boiler and pressure vessel components of nuclear energy systems shall be inspected pursuant to Section XI of the ASME Code. {h-Hg) Authorized inspectors Inspectors may order coverings removed, internal inspections, external inspections, control and safety device testing or calibration , or pressure tests whenever conditions warrant further evaluation of a boiler, pressure vessel, or nuclear energy system. (h) Hydropneumatic storage tanks shall undergo an external inspection every five years, except that hydropneumatic storage tanks installed at a distance of not less than 250 feet from a building of public assembly or apartment house need not be 1084 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES inspected, nor receive an inspection certificate. (j) When the inspector or Director determines that a certificate can not be issued as a result of an inspection, the boiler or pressure vessel shall be reinspected after the necessary repairs are made. (j) Inspections shall be performed in accordance with the National Board Inspection Code, Chapter H, Inspection of Boilers and Pressure Vessels, 1992 edition, including subsequent amendments and editions, which is hereby incorporated by reference. The inspector may require controls and safety devices to be disassembled, tested, checked or calibrated as necessary to ensure their proper operation. (TO The Director may consider extending an existing inspection certificate for a power boiler for a period not exceeding 60 days beyond the certificate expiration date, should an inspection at the specified period result in undue hardship for the owner or user. The owner or user shall submit a written request to extend an existing inspection certificate, providing justification for an extension. The request shall include a report from a commissioned inspector of an external inspection which shall have been performed no earlier than 60 days before the certificate expiration date, and the inspection report shall include a recommendation from the inspector for an extension to the inspection certificate. (1) The inspection frequency established by this Rule may be modified by the Director for individual boilers and pressure vessels if the Director determines that due to unique conditions, the frequency established herein is not appropriate, and that the safety attained by the normal inspection frequency will be otherwise obtained. Statutory Authority G.S. 95-69.11; 95-69.14. .0212 PREPARATION FOR INSPECTION (a) The owner or user shall prepare a power boiler for internal inspection by: (1) cooling the boiler, furnace, and setting so as to prevent damage to any part; (2) draining and washing thoroughly internal parts to be inspected; inspected, including disassembly and cleaning of float bowl type low-water fuel cutoff devices and associated piping plugs or caps; (3) removing wash-out, drain, and inspection plugs; (4) removing enough of the grates in an internally fired boiler to permit inspection; (5) removing enough brickwork, refractory, and insulation to permit inspection; (6) removing manhole and handhole plates; (7) preparing the controls and safety devices for inspection and testing; and (8) preventing leakage of water, steam, or vapors into boiler interiors that would endanger personnel, personnel; (9) providing adequate ventilation to prevent the accumulation of hazardous gasses; and (10) providing, when required, a competent person, as defined under the North Carolina Occupational Safety & Health standard for confined spaces, to assist the inspector in the performance of his inspection. (b) In addition to the requirements in Paragraph (a) of this Rule, the owner or user shall prepare a power boiler that has a manhole and which is connected to a common header with another boiler for internal inspection by: (1) closing and tagging, or padlocking, the nonreturn and steam stop valves and opening all drain valves or cocks located between the nonreturn and steam stop valves; (2) closing and tagging, or padlocking, the feed and check valves and opening all drain valves or cocks located between the feed and check valves; (3) draining boiler and then closing and padlocking the blowoff valves; (4) disconnecting, at the request of the inspector, blowoff lines between pressure parts and valves; (5) opening all drains and vent lines; and (6) after complying with all other provisions of Rule .0212, open opening the manhole covers. (c) The owner or user shall prepare a heating boiler,—water tube coiled type boiler,—miniature boiler, or pressure vessel which is required by the inspector to be inspected internally by: {4} removing manhole and handhole plates, as—weH—as — cleaning—and — inspection plugs; {3) cleaning internal surface s and adequately ventilating—aH interior spaces; {$) i solating the unit to the extent that internal—temperature,—pressure,—and environment—afe—net — injurious—te personnel and arc under strict control; 9:14 NORTH CAROLINA REGISTER October 14, 1994 1085 PROPOSED RULES (4) removing—l i nings—&r—coverings—as directed by the inspector upon hi s or her arrival; and {§) preparing pressure gauges fef in spection or testing. The owner or user need not make any special preparation for an external inspection of a boiler or pressure vessel, except that if the inspector requires the boiler or pressure vessel to be shut down for a closer inspection, the boiler or pressure vessel shall be prepared as is required for the internal inspection of a power boiler. Statutory Authority G.S. 95-69.11. .0213 FEES (a) An eighteen dollar ($1 8 .00) A twenty dollar ($20.00) certificate and processing fee for each boiler or pressure vessel inspected by a Special an Insurance Inspector and found to be in compliance with these Rules shall be paid to the North Carolina Department of Labor. (b) An inspection and certificate fee shall be paid to the North Carolina Department of Labor for each boiler or pressure vessel inspected by the State, a deputy inspector as follows: (1) General External Inspection [.0101(1 4)] (A) vessel—entry—aet — required pressure vessels - $25.00; (B) vessel entry required boilers - $35.00. (3) External Inspection [.0101(13)] $25.00; (21 0)lnternal Inspection [.0101(15)] (A) vessel entry not required - $35.00 $50.00; (B) vessel entry required - $100.00. ft) if heating—surface—is—less—then 3.000 sq. ft $ 80.00; fit) if heating surface is 3,000 sq. ft. or more—$100.00; (3) Inspections performed outside of normal working hours shall be considered special inspections and the applicable fees shall apply, including the fee for working outside of normal working hours. (c) A fee of fifty dollars ($50.00) sixty dollars ($60.00) per hour, including travel time, plus expenses including travel, hotel and meals shall be paid to the North Carolina Department of Labor for each special inspection [.0101(27)]. The fee for special in spections performed outside of normal working hours i s computed at the shop rate. (d) A fee of one hundred eighty five dollars ($1 85.00) two hundred forty dollars ($240.00) per one-half day (four hours) or any part of one-half day or three—hundred—dollars—($300.00) four hundred dollars ($400.00) for one day (four to eight hours) or one thousand four hundred dollars ($1 400.00) per week (36 to 4 hours), plus, in either case, all expenses including travel hotel, and meals shall be paid to the North Carolina Department of Labor for each shop inspection [.0101(26)]. This fee docs not include the regular fee for inspection when the boiler or pressure vessel i s installed. Shop inspections performed outside—e# — normal—working—hours — shall—be computed at one and one half times the normal rate plus expenses .—Normal working hours shall be between the hours of 6:00 AM and 8 :00 PM, Monday—through Friday, except—fer—state recognized holidays . (e) A fee of two hundred dollars ($200.00) two hundred eighty dollars ($280.00) per one-half day (four hours) or any part of one-half day or three hundred fifty dollars ($350.00) four hundred sixty dollars ($460.00) for one day (four to eight hours) or one thousand six hundred dollars ($1,600) per week (36 to 4 hours) , plus, in either case, all expenses including travel hotel, and meals shall be paid to the North Carolina Department of Labor for each nuclear inspection. This fee docs not include the regular fee for inspection when the boiler or pressure vessel is installed. Nuclear in spections performed outside of normal working hours shall be computed at one and one half times the normal rate plus expenses.—Normal working hours shall be between the hours of 6:00 AM and 8 :00 PM, Monday through Friday, except for state recognized holidays. (f) A foe of four hundred dollars ($400.00) per day (up to eight hours) plus all expenses, including travel, hotel and meals shall be paid to the North Carolina Department of Labor for each—audit- Audits performed outside of normal working hours s hall be computed at seventy five dollars ($75.00) per hour. Normal working hours s hall be between the hours of 6:00 AM and 8:00 PM, Monday through—Friday,—except—fef—state — recognized holidays . Audits include activities other than those identified as inspections, including: W- reviews—and surveys- for ASME and National Board stamp renewal, and audi issuance and f2-) audits pursuant to evaluation for the issuance of North Carolina Special s . A fee of three hundred twenty dollars ($320.00) per one-half day (four hours) 1086 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES or any part of one-half day or five hundred thirty dollars ($530.00) for one day (four to eight hours), plus, in either case, all expenses including travel hotel, and meals shall be paid to the North Carolina Department of Labor for audits. (g) Fees for inspections and audits performed by the Director, his designee, or a deputy inspector outside of normal working hours or in excess of eight hours per inspection visit shall include an additional thirty dollar ($30.00) fee per hour in addition to the normal inspection or audit fee. (h) Fees shall be negotiable for annual contracts for shop inspections whereby the organization requesting inspection services requires the use of the inspector on a full time basis (thirty six to forty hours per week for a period of fifty two weeks). Payment of the fees shall be made in monthly installments. (i) Printed information derived from the database for boilers and pressure vessels maintained by the Division is available for public scrutiny. Charges for providing this service shall be payable upon receipt of invoice to the North Carolina Department of Labor. Charges for this service are as follows: .0301 INSPECTION DOCUMENTATION (a) Upon receipt of the inspection report and fee, the director shall determine whether or not a boiler or pressure—vessel—complies—with—GrSr Chapter 95, Article 7A, and these Rules. fb) If the director determines that the boiler or pressure vessel is in compliance with Chapter 95, Article 7A, and these Rules, he shall immediately issue an inspection certificate authorizing use of the boiler or pressure vessel. {e)—If the director determines that the boiler or pressure vessel i s not in compliance with G.S. Chapter 95, Article 7A, or these Rules, but can be repaired or altered so as to comply with G.S. Chapter 95, Article 7A, and these Rules, he shall so notify the owner or user by letter within 10 working—days—and— s pecify—what—repairs — of alteration s are required. fd) The owner or user shall return the letter to the director within 15 days of its receipt: {4-) certifying that the required repairs or alterations have been completed; or {2} explaining any—delay and requesting additional time to complete the repairs or alterations; or (3) certifying that use of the boiler or pressure vessel has been di scontinued. The director may grant a grace period of up to 60 days from the certificate expiration date. {e) Upon completion of the required repairs or alterations, the director shall issue an inspection (1) Requests for database information for which the Division has created the information selection criteria and printout format for its own use, and which can be furnished without the certificate for the boiler or pressure vessel. need for special programming will be furnished for a charge of twenty dollars ($20.00) plus twenty-five cents ($0.25) Egl Page- (2) Requests for database information which requires special selection criteria or printout format, and which requires the need for special programming services to derive the requested information or format, will be furnished for a charge of seventy-five dollars ($75.00) plus twenty-five cents ($0.25) per page. (j) Copies of inspection reports or other inspection records may be provided upon written request. Copies of these records are available for a charge of fifteen dollars ($15.00) per request and twenty-five cents ($0.25) per page. Statutory Authority G.S. 95-69.11. SECTION .0300 - ENFORCEMENT OF STANDARDS (f) — If the director determines that the boiler or pressure vessel is not in compliance with G.S. Chapter 95, Article 7A, or these Rules and cannot be repaired or altered so as to comply with G.S. Chapter 95, Article 7A, and these Rules, he shall so notify the owner or user by letter, within 10 working days, that the boiler or pressure vessel is condemned and that its operation i s thereafter unauthorized. fg) — Upon receipt of the letter notifying the owner or user that repairs or alteration s arc required, or that the boiler or pressure vessel is condemned, the owner or user shall have 30 days in which to appeal that determination to the commis sioner. {¥) — The deci sion of the director shall not be stayed pending review by the commissioner. (t) Upon appeal, a hearing s hall be conducted pursuant to Article 3 of G.S. Chapter 150B. ^j) The deci sion of the commissioner shall constitute a final agency decision subject to judicial review pursuant to Article 4 of G.S.—Chapter +50B, 9:14 NORTH CAROLINA REGISTER October 14, 1994 1087 PROPOSED RULES (a) The inspector shall document the results of the inspection on an inspection report. (b) If the inspector finds that the boiler or pressure vessel is in compliance with these Rules, he shall indicate on the inspection report that the boiler or pressure vessel is satisfactory. (c) If the inspector finds the boiler or pressure vessel is not in compliance with these Rules, he shall specify in detail on the inspection report the deficiencies and the required repairs or corrective action. (d) The inspector shall determine if the deficiency is such that operation of the boiler or pressure vessel creates a condition of imminent danger. If a condition of imminent danger exists, the inspector shall state on the inspection report that operation of the boiler or pressure vessel should cease immediately until completion of the necessary repairs or corrective action. The inspector shall immediately notify the Director of any condition of imminent danger. (e) If the condition of the boiler or pressure vessel is such that repairs or corrective action can not bring the boiler or pressure vessel into compliance, he shall indicate on the inspection report that the boiler or pressure vessel should be condemned from further use. (f) For inspections revealing deficiencies, the inspector shall request the owner/user to sign the inspection report acknowledging receipt of a copy and confirming that the inspector explained the necessary repairs or corrective action. (g) The inspector shall leave a copy of the inspection report with the owner/user, and submit the original to the Director. (h) The inspector or the Division, at the Director's discretion, shall issue an invoice to the owner or user for the inspections made and for issuance of the inspection certificate. The owner or user shall remit payment as indicated on the invoice within 15 days to the North Carolina Department of Labor. Statutory Authority G.S. 95-69.11; 95-69.16. .0302 CERTIFICATE ISSUANCE fa) If, during the period for which a valid inspection—ccrtificato—is — h*—effect,—the director determines that a boiler or pressure vessel: fB docs not comply with G.S. Chapter 95, Article 7A, or these Rule; {3) constitutes a menace to public safety in its present condition, or will constitute a menace to public safety if not altered or repaired; and (3) can be repaired or altered to comply with G.S. Chapter 95, Article 7A and these Rules ;—then the director shall notify the owner or user by letter; (A)— s pecifying what repairs or alterations arc required; {B) — that continued operation of the boiler of—pressure—vessel—constitutes— a menace to public safety; and {€-) that, to avoid injury to persons and property, the owner or user should immediately discontinue the use of the boiler or pressure vessel, with the understanding—that—the — inspection certificate will be suspended until the specified repairs or alterations have been completed, thereby voluntarily waiving—any — rights—to — operate—the boiler—ef — pressure—ves sel—granted under Article 7A, Chapter 95 of the General Statutes. {b) The owner or user shall return the letter to the director within 15 days of its receipt: {+) certifying that the boiler or pressure vessel—has — been—repaired—altered—m compliance with the director's specifications ; {3) indicating his intention to comply with the standards of safety for boilers and pressure ves sels, with the understanding that the inspection certificate will be suspended until the boiler or pressure vessel has been repaired or altered in compliance with the director's specifications ; thereby voluntarily waiving any rights to operate the boiler or pressure vessel granted under Article 7A, Chapter 95 of General Statutes; or (3) indicating hi s intention to continue the operation—of the—boiler—©f — pressure vessel and recognizing that the director has — declared—the boiler—er—pressure vessel a public menace and that the director has advised that the operation of the boiler or pressure vessel should be immediately suspended in order to avoid injury to persons and property. {e) — Where the owner or user acts pursuant to (b)(2) of thi s Rule, the director shall cause the inspection certificate to—be suspended,—thereby suspending operation of the boiler or pressure vessel, until the specified repairs or alterations arc completed. {&)—Where the owner or user acts pursuant to (b)(3)—of this—Rule,—ef — fmte—te — return—letter 1088 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES declaring the boiler or pressure vessel a menace to public safety within—15 days of its receipt, the director, or hio designee, shall post, in the manner prescribed by (c) of thi s Rule, a notice as follows : The Director of the Boiler and Pressure Vessel Division of the North Carolina Department of Labor has declared the (boiler/pressure vessel) e« these premises,—bearing the serial—number N€ , to be a MENACE TO PUBLIC SAFETY, in that its continued operation poses subs tantial risk of injury to persons and property. The director has advised the owner or U3er of this (boiler/pressure vessel) of repairs or alterations that must be made fef—th+s — (boiler/pressure—vessel)—te comply with the standards of safety established by—the Commissioner of Labor. The owner or user, pursuant to G.S. 96 69.17, has acted to continue the operation—ef- — (boiler/pressure—vessel) without these—repairs — or alterations, pending a hearing to determine if the inspection certificate fef tfrts (boiler/pressure vessel) w+H be suspended, (c) The notice described in (d) of this Rule shall be posted by the director: {+) in a prominent place on the boiler or pressure—vessel—needing—repairs—ef alterations; m- -Ht- -a prominent place -+R- -the establishment—where—th« — boiler—ef pressure vessel is being used so that it may be easily read by members of the public and employees. (f) — Where the owner or user acts pursuant to (b)(3) of thi s Rule, or fails to return the letter declaring the boiler or pressure vessel to be a menace to public safety within—15 days of its receipt, the director shall, in addition to, and along with, action taken under (d) of thi s Rule: £4-) afford the -an — aggrieved—party opportunity fof a hearing, m accordance with G.S. Chapter 150B, to determine if the inspection certificate will be suspended as of the date of the hearing; {S) obtain injunctive relief, on behalf of the commissioner, pursuant te GrSr 95 69.11(6); or ify initiate proceedings under both (f)(1) and (f)(2) of this Rule. fg4 — The owner or user shall notify the director by letter, within 15 days after he receives notice pursuant to (f)(1) of this Rule, requesting a hearing te — determine—if the inspection certificate—witt suspended as of the date of the hearing. {&) If the owner or user fails to notify the director by letter, within 15 days after he receives notice pursuant to (f)(1) of this Rule, the director shall immediately suspend the inspection certificate. (a) The Director or his designee shall review the inspection report and if he finds the boiler or pressure vessel to be in compliance with these Rules, issue an inspection certificate to the owner/user, pending receipt of payment. (b) The owner shall post the inspection certificate in a prominent place visible to the operator while reading the pressure. The certificate shall be placed under glass, or otherwise protected from the environment. Statutory Authority G.S. 95-69.11. ,0303 INSPECTIONS REVEALING DEFICIENCIES fa) — If, during the period for which a valid inspection mng-ccrtificatc 4s — in effect,—the-a-director determines that a boiler or pressure ves sel: {¥) docs not comply with G.S. Chapter 95, Article 7A, or these Rules; (3) constitutes a menace to public safety; ano m- cannot be repaired or altered to cojrmply with G.S. Chapter 95, Article 7A, and these Rules.—Then, the director shall notify the owner or user by letter that continued operation of the boiler or pressure vessel constitutes a menace to public safety and that, to avoid injury to persons and property, the owner or user should immediately discontinue the use the boiler or pressure vessel, with the understanding that the inspection certificate—wtH—be — revoked—and—the boiler—ef — pressure—vessel—w+H—be condemned, thereby voluntarily waiving any — rights—to operate the boiler or pressure vessel granted under Article 7A, Chapter 95 of General Statutes. fb) The owner or user shall return the letter to the director within 15 days of its receipt: ft) indicating his intention to comply with the standards of safety for boilers and pressure vessels, with the understanding that the inspection certificate will be 9:14 NORTH CAROLINA REGISTER October 14, 1994 1089 PROPOSED RULES revoked—and—the — boiler—er—pressure vessel—w+H—be — condemned;—thereby voluntarily—waiving—ftfly — rights—te operate the boiler or pres sure vessel granted under Article 7A, Chapter 95 of the General Statutes; or (3) indicating his intention to continue the operation—of the—boiler—or pressure ve s sel and recognizing that the director has declared—the boiler or pressure vessel a public menace and that the director has advised that the operation of the boiler or pressure vessel should be immediately discontinued in order to avoid injury to persons and property. fe) Where the owner or user act s pursuant to (b)(1) of this Rule, the director shall cause the boiler or pressure vessel to be condemned and the inspection certificate revoked. fd} Where the owner or user acts pursuant to (b)(2) of this Rule, or fails to return the letter declaring the boiler or pressure vessel a menace to public safety within 15 days of its receipt, the director, or his designee, shall post, in the manner prescribed by (e) of this Rule, a notice as follows: The Director of the Boiler and Pressure Vessel Division of the North Carolina Department of Labor has declared the (boiler/pressure vessel) en these premi ses,—bearing the serial—number N€- to be a MENACE TO PUBLIC SAFETY, -m—-that- tfrat—its continued operation po ses a s ubs tantial risk of injury to persons and property. The director has advi sed the owner or user of this (boiler/pressure vessel) that thi s (boiler/pressure vessel) cannot be repaired or altered so as to comply with the standards of safety established by the Commissioner of Labor. The owner or user, pursuant to G.S. 95 69.17, has elected to continue the operation—ef-—this (boiler/pressure vess el), pending a hearing to determine if the—inspection—certificate—fef—this (boiler/press ure vessel) will be revoked and the (boiler/pressure vessel) condemned. te) — The notice described in (d) of thi s Rule, shall be posted by the director: <4-) in a prominent place on the boiler or pressure vessel; and f2-) a prominent place in the establishment where the boiler or pressure vessel is being u sed so that it may be easily read by members of the public and employees. (f) — Where the owner or user acts pursuant to (b)(2) of this Rule, or fails to return the letter declaring the boiler or pressure vessel to be a menace to public safety within—15 days of its receipt, the director shall, in addition to and along with action taken under (d) of thi s Rule: w- afford -ftft —the aggrieved—party opportunity fef a hearing, m accordance with G.S. Chapter 150B, to determine if the inspection certificate wiH—be — revoked—and — the—boiler—&r pressure vessel condemned as of the date of the hearing; (3j obtain injunctive relief, on behalf of the commissioner, pursuant te GrSr Chapter 95 69.11(6); or m- 1) case the initiate proceedings under both (f)(1) and (f)(2) of this Rule. (g) The owner or user shall notify the director by letter, within 15 days after he receives notice pursuant to (f)(1) of this Rule, requesting a hearing to determine if the inspection certificate will be revoked—and — the—boiler—ef — pressure—vessel condemned as the date the hearing. {h) — If the owner or user fails to notify the director by letter, within 15 days after he receives notice pursuant to (f)(1) thi s Rule, the director shall immediately revoke the inspection certificate and condemn the boiler or pressure vessel. (a) The owner or user shall complete any required repairs or corrective action and request an additional inspection within 30 days of the inspection, except in cases where the boiler or pressure vessel is removed from service, in which owner or user shall send in written confirmation, signed by the owner or user, that use of the boiler or pressure vessel has been discontinued and that the boiler or pressure vessel has been removed from the source of energy. (b) Upon notification by the inspector of a boiler or pressure vessel for which continued operation creates a condition of imminent danger, the Director shall determine if the recommendations of the inspector are valid, and if sOj he shall immediately notify the owner or user by the most expedient means possible, followed by written notification within 15 days stating that the use of the boiler or pressure vessel shall be discontinued immediately. (c) The owner or user may continue operation of the boiler or pressure vessel, including those boilers or pressure vessels which are condemned, during the 30 day period, except that this provision shall not apply to boilers and pressure vessels after 1090 9:14 NORTH CAROLINA REGISTER October 14, 1994 PROPOSED RULES verbal notification by the Director to the owner or user that a condition of imminent danger exists. (d) After completion of any required repairs or corrective action, the boiler or pressure vessel shall be reinspected to the extent necessary to verify satisfactory completion of the required repairs or corrective action. For reinspections performed by deputy inspectors, an external inspection fee shall apply. Statutory Aut
Object Description
Description
Title | North Carolina register |
Date | 1994-10-14 |
Description | Vol. 9, issue 14 (October 14, 1994) |
Publisher | Raleigh, N.C. : Office of Administrative Hearings |
Digital Characteristics-A | 100 p.; 6.84 MB |
Digital Format | application/pdf |
Pres File Name-M | pubs_serial_ncregister19941014.pdf |
Pres Local File Path-M | \Preservation_content\StatePubs\pubs_serial_ncregister\images_master |
Full Text |
£3R/kf>J/'74-34- /-AZ- /rt&7/
The
NORTH CAROLINA
REGISTER
IN THIS ISSUE
PROPOSED RULES
Dietetics/Nutrition
Environment, Health, and Natural Resources
Human Resources
Insurance
Justice
Labor
Medical Examiners
Mortuary Science
Secretary of State
Transportation
Rl IVED
m
1AW LIBRARY
mmt-
RRC OBJECTIONS
CONTESTED CASE DECISIONS
ISSUE DATE: October 14, 1994
Volume 9 • Issue 14 • Pages 1063 - 1151
INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE
NORTH CAROLINA REGISTER
The North Carolina Register is published twice a month and
contains information relating to agency, executive, legislative and
judicial actions required by or affecting Chapter 150B of the General
Statutes. All proposed administrative rules and notices of public
hearings filed under G.S. 1 50B-21 .2 must be published in the Register.
The Register will typically comprise approximately fifty pages per
issue of legal text.
State law requires that a copy of each issue be provided free of
charge to each county in the state and to various state officials and
institutions.
The North Carolina Registers available by yearly subscription at
a cost of one hundred and five dollars ($105.00) for 24 issues.
Individual issues may be purchased for eight dollars ($8.00).
Requests for subscription to the North Carolina Register should be
directed to the Office ofAdministrative Hearings, P. O. Drawer 27447,
Raleigh, N.C. 27611-7447.
ADOPTION, AMENDMENT, AND REPEAL OF
RULES
The following is a generalized statement of the procedures to be
followed for an agency to adopt, amend, or repeal a rule. For the
specific statutory authority, please consult Article 2A ofChapter 1 50B
of the General Statutes.
Any agency intending to adopt, amend, or repeal a rule must first
publish notice of the proposed action in the North Carolina Register.
The notice must include the time and place of the public hearing (or
instructions on how a member of the public may request a hearing); a
statement of procedure for public comments; the text of the proposed
rule or the statement of subject matter; the reason for the proposed
action; a reference to the statutory authority for the action and the
proposed effective date.
Unless a specific statute provides otherwise, at least 1 5 days must
elapse following publication of the notice in the North Carolina
RegisterbefoK the agency may conduct the public hearing and at least
30 days must elapse before the agency can take action on the proposed
rule. An agency may not adopt a rule that differs substantially from the
proposed form published as part of the public notice, until the adopted
version has been published in the North Carolina Register for an
additional 30 day comment period.
When final action is taken, the promulgating agency must file the
rule with the Rules Review Commission (RRC). After approval by
RRC, the adopted rule is filed with the Office of Administrative
Hearings (OAH).
A rule or amended rule generally becomes effective 5 business
days after the rule is filed with the Office of Administrative Hearings
for publication in the North Carolina Administrative Code (NCAC).
Proposed action on rules may be withdrawn by the promulgating
agency at any time before final action is taken by the agency or before
filing with OAH for publication in the NCAC.
TEMPORARY RULES
Under certain emergency conditions, agencies may issue tempo-rary
rules. Within 24 hours of submission to OAH, the Codifier of
Rules must review the agency's written statement of findings of need
for the temporary rule pursuant to the provisions in G.S. 150B-2 1 . 1 . If
the Codifier determines that the findings meet the criteria in G.S
150B-21.1, the rule is entered into the NCAC. If the Codifier
determines that the findings do not meet the criteria, the rule is returned
to the agency. The agency may supplement its findings and resubmit
the temporary rule for an additional review or the agency may respond
that it will remain with its initial position. The Codifier, thereafter, will
enter the rule into the NCAC. A temporary rule becomes effective
either when the Codifier of Rules enters the rule in the Code or on the
sixth business day after the agency resubmits the rule without change
The temporary rule is in effect for the period specified in the rule or 1 80
days, whichever is less. An agency adopting a temporary rule must
begin rule-making procedures on the permanent rule at the same time
the temporary rule is filed with the Codifier.
NORTH CAROLINA ADMINISTRATIVE CODE
The North Carolina Administrative Code (NCAC) is a compilation
and index of the administrative rules of 25 state agencies and 38
occupational licensing boards. The NCAC comprises approximately
15,000 letter size, single spaced pages of material of which approxi-mately
35% is changed annually. Compilation and publication of the
NCAC is mandated by G.S. 150B-21.18.
The Code is divided into Titles and Chapters. Each state agency i;
assigned a separate title which is further broken down by chapters
Title 21 is designated for occupational licensing boards.
The NCAC is available in two formats.
(1) Single pages may be obtained at a minimum cost of two
dollars and 50 cents ($2.50) for 10 pages or less, plus fifteer
cents ($0.15) per each additional page.
(2) The full publication consists of 53 volumes, totaling ir
excess of 15,000 pages. It is supplemented monthly witl
replacement pages. A one year subscription to the ful
publication including supplements can be purchased foi
seven hundred and fifty dollars ($750.00). Individual vol
umes may also be purchased with supplement service. Re
newal subscriptions for supplements to the initial publicatioi
are available.
Requests for pages of rules or volumes of the NCAC should be
directed to the Office of Administrative Hearings.
CITATION TO THE NORTH CAROLINA
REGISTER
The North Carolina Register is cited by volume, issue, pagi
number and date. 1:1 NCR 101-201, April 1, 1986 refers to Volumi
1, Issue 1, pages 101 through 201 ofthcNorthCarolinaRegisterissuei
on April 1, 1986.
FOR INFORMATION CONTACT: Office of Administra-tive
Hearings, ATTN: Rules Division, P.O. Drawer 27447,
Raleigh, North Carolina 2761 1-7447, (919) 733-2678.
NORTH
CAROLINA
REGISTER
Office of Administrative Hearings
P. O. Drawer 27447
Raleigh, North Carolina 27611-7447
(919) 733-2678
Julian Mann III,
Director
James R. Scarcella Sr.,
Deputy Director
Molly Masich,
Director ofAPA Services
Staff:
Ruby Creech,
Publications Coordinator
Teresa Kilpatrick,
Editorial Assistant
Jean Shirley,
Editorial Assistant
This publication is printed on permanent,
acid-free paper in compliance with
G.S. 125-11.13.
ISSUE CONTENTS
I. PROPOSED RULES
Environment, Health, and
Natural Resources
Health Services 1112
Marine Fisheries Commission ... 1109
Human Resources
Mental Health, Developmental
Disabilities and Substance Abuse
Services 1063
Insurance
Actuarial Services Division .... 1072
Agent Services Division 1065
Life and Health Division 1071
Justice
N.C. Sheriffs' Education & Training
Standards Commission 1075
Labor
Boiler and Pressure Vessel 1076
Licensing Boards
Dietetics/Nutrition 1115
Medical Examiners 1119
Mortuary Science 1120
Secretary of State
Notary Public Division 1112
Transportation
Highways, Division of 1114
II. RRC OBJECTIONS 1122
III. CONTESTED CASE DECISIONS
Index to ALJ Decisions 1124
Text of Selected Decisions
93 OSP 1001 . 1136
93 OSP 1505 1141
IV. CUMULATIVE INDEX 1149
NORTH CAROLINA REGISTER
Publication Schedule
(April 1994 - January 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
notice
* End of
Required
Comment
Period
30 days
from
notice
Last Day
to Submit
to RRC
** Earliest
Effective
Date
9:1 04/04/94 03/11/94 03/18/94 04/19/94 05/04/94 05/20/94 07/01/94
9:2 04/15/94 03/24/94 03/31/94 05/02/94 05/16/94 05/20/94 07/01/94
9:3 05/02/94 04/11/94 04/18/94 05/17/94 06/01/94 06/20/94 08/01/94
9:4 05/16/94 04/25/94 05/02/94 05/31/94 06/15/94 06/20/94 08/01/94
9:5 06/01/94 05/10/94 05/17/94 06/16/94 07/01/94 07/20/94 09/01/94
9:6 06/15/94 05/24/94 06/01/94 06/30/94 07/15/94 07/20/94 09/01/94
9:7 07/01/94 06/10/94 06/17/94 07/18/94 08/01/94 08/22/94 10/01/94
9:8 07/15/94 06/23/94 06/30/94 08/01/94 08/15/94 08/22/94 10/01/94
9:9 08/01/94 07/11/94 07/18/94 08/16/94 08/31/94 09/20/94 11/01/94
9:10 08/15/94 07/25/94 08/01/94 08/30/94 09/14/94 09/20/94 11/01/94
9:11 09/01/94 08/11/94 08/18/94 09/16/94 10/03/94 10/20/94 12/01/94
9:12 09/15/94 08/24/94 08/31/94 09/30/94 10/17/94 10/20/94 12/01/94
9:13 10/03/94 09/12/94 09/19/94 10/18/94 11/02/94 11/21/94 01/01/95
9:14 10/14/94 09/23/94 09/30/94 10/31/94 11/14/94 11/21/94 01/01/95
9:15 11/01/94 10/11/94 10/18/94 11/16/94 12/01/94 12/20/94 02/01/95
9:16 11/15/94 10/24/94 10/31/94 11/30/94 12/15/94 12/20/94 02/01/95
9:17 12/01/94 11/07/94 11/15/94 12/16/94 01/03/95 01/20/95 03/01/95
9:18 12/15/94 11/22/94 12/01/94 12/30/94 01/17/95 01/20/95 03/01/95
9:19 01/03/95 12/08/94 12/15/94 01/18/95 02/02/95 02/20/95 04/01/95
9:20 01/17/95 12/21/94 12/30/94 02/01/95 02/16/95 02/20/95 04/01/95
This table is published as a public service, and the computation of time periods are not to be deemed binding
or controlling. Tune 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 above,
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 business day of the next
calendar month.
Raised 03/94
PROPOSED RULES
TITLE 10 - DEPARTMENT OF
HUMAN RESOURCES
Notice is hereby given in accordance with G.S.
150B-21.2 that the Commission for Mental Health,
Developmental Disabilities and Substance Abuse
Services intends to amend rules cited as 10 NCAC
18F .0313 and .0319.
1 he proposed effective date of this action is
January 1, 1995.
Instructions on How to Demand a Public Hearing
(must be requested in writing within 15 days of
notice):
A demand for a public hearing must be made in
writing and mailed to Charlotte Tucker,
Rulemaking Coordinator, Division of Mental
Health, Developmental Disabilities and Substance
Abuse Services, Albemarle Building, 325 N.
Salisbury Street, Raleigh, NC 27603. Tfiis demand
must be made within 15 days of this notice.
MXeason for Proposed Action: Amend for further
clarification in the provision ofDWl assessments.
(comment Procedures: Anyone who wishes to
submit written comments should address them to
Charlotte Tucker, Division of Mental Health,
Developmental Disabilities and Substance Abuse
Services, 325 N. Salisbury Street, Albemarle
Bldg., Raleigh, NC 27603. Comments will be
accepted from October 14, 1994 through
November 14, 1994.
CHAPTER 18 - MENTAL HEALTH:
OTHER PROGRAMS
SUBCHAPTER 18F - PROGRAM
SUPPORT STANDARDS
SECTION .0300 - SUBSTANCE ABUSE
ASSESSMENTS FOR
INDIVIDUALS CHARGED WITH
OR CONVICTED OF DRIVING
WHILE IMPAIRED (DWI)
.0313 DEFINITIONS
For the purpose of the rules in this Section, the
following terms shall have the meanings indicated:
(1) "American Society of Addiction Medicine
(ASAM) Placement Criteria" means the
(2)
(3)
(4)
(a)
Patient Placement Criteria for the Treat-ment
of Psychoactive Substance Abuse
Disorders, copyright 1991 by the Nation-al
Association of Addiction Treatment
Providers and the American Society of
Addiction Medicine. For these Rules,
the ASAM Level I, Outpatient Treat-ment,
has been divided into LA., Short-term
and LB., Longer-term Outpatient
Treatment.
"Certified ADETS Instructor" means an
individual who is certified by the Divi-sion
in accordance with 10 NCAC 18M
.0906 Instructor Certification, contained
in Division publication, Standards for
Area Programs and Their Contract Agen-cies,
APSM 35-1, and available at the
current printing cost.
"Clinical Interview" means the face-to-face
interview with a substance abuse
professional intended to gather informa-tion
on the client, including, but not
limited to the following: demographics,
medical history, past and present driving
offense record, alcohol concentration of
current offense, social and family history,
substance abuse history, vocational back-ground
and mental status.
"Continuing Care" means an outpatient
service designed to maximize the recov-ery
experience begun in more intensive
inpatient or outpatient treatment. As a
continuation of the treatment experience
this service is expected to begin immedi-ately
upon the client's discharge from
intensive treatment:
When the continuing care follows an
inpatient treatment experience , it shall :
fh)
—
include, at a minimum, a total number
of 20 contact hours of service during
a 30 day period.—Each week of the
30 day period shall have scheduled
hours of service; and
(it)
continue for a minimum period of 90
days.
a total of 90 days, including the inten-sive
inpatient treatment period, shall
be provided;
a minimum of 20 contact hours of
0)
mi
m
service during a 30-day period shall
be provided. Each week of the 30-
day period shall have scheduled hours
of service; and
for any of the remaining 90 days of
continuing care, a specific schedule
9:14 NORTH CAROLINA REGISTER October 14, 1994 1063
PROPOSED RULES
for contact hours of service ]s not
required.
(b) The services shall be provided accord-ing
to a written continuing care plan
which shall:
(i) address the needs of the client; and
(ii) utilize individual, family and group
counseling as required to meet the
needs of the client.
(5) "Division" means the same as defined in
G.S. 122C-3; and is hereafter referred to
as DMH/DD/SAS.
(6) "DMH Form 508 (DWI Services Certifi-cate
of Completion)" means the four-part
form which is used in documenting the
offenders completion of the DWI sub-stance
abuse assessment and treatment or
ADETS.
(7) "Driving record" means a person's North
Carolina driving history, as maintained
by the North Carolina Driver's License
Division's history file.
(8) "DSM" means the current edition of the
Diagnostic and Statistical Manual of
Mental Disorders of the American Psy-chiatric
Association.
(9) "DWI" means impaired driving as de-scribed
in G.S. 20-138.1.
(10) "DWI categories of service" mean:
(a) "Alcohol and Drug Education Traffic
School (ADETS)" means an approved
curriculum which shall:
(i) include 10 to 13 contact hours in a
classroom setting;
(ii) be provided by area programs or their
designated agencies with certified
ADETS instructors; and
(iii) be designed for persons:
(A) who have only one DWI convic-tion
(lifetime);
(B) whose assessment did not identify
a "Substance Abuse Handicap";
and
(C) whose alcohol concentration was
. 14 or less.
(b) "Day treatment" means a structured,
outpatient service. It may also be
called intensive outpatient treatment, as
defined in 10 NCAC 14N .0900 and
applicable portions of 10 NCAC 14K
.0300, which include ASAM Level II
treatment criteria.
(c) "Inpatient residential treatment servic-es"
means an array of services which
may include detoxification and rehabili-tation
in a structured environment, as
set forth in 10 NCAC +4© 14N .0300,
and contained in Licensure Rules as
defined in Item (13) of this Rule. Such
services will correspond with ASAM
Level III and Level IV treatment crite-ria.
(d) "Longer-term outpatient treatment"
means a structured program meeting the
ASAM definition of Level I, Outpatient
Treatment, and requiring a minimum of
40 contact hours scheduled to maintain
the client in active treatment for a
minimum period of 60 days, providing
counseling and learning experiences
which include the "Minimal Subject
Content," as defined in Item (14) of this
Rule. The facility must operate in
compliance with Licensure Rules, 10
NCAC 14N .0700 and applicable por-tions
of 10 NCAC 14K .0300.
(e) "Short-term outpatient treatment" means
a structured program meeting the broad
definition of "ASAM Level I, Outpa-tient
Treatment," and requiring a mini-mum
of 20 contact hours over a period
of at least 30 days, including counseling
and didactic experiences which include
the minimal subject content. Facilities
which are approved to provide this shall
operate in compliance with Licensure
Rules contained in 10 NCAC 14N
.0700 and applicable portions of 10
NCAC 14K .0300.
(11) "DWI Substance Abuse Assessment"
means a service provided to persons
charged with or convicted of DWI to
determine the presence or absence of a
substance abuse handicap. The assess-ment
involves a clinical interview as well
as the use of a standardized test.
(12) "Facility" means the term as defined in
G.S. 122C-3(14).
(13) "Licensure rules" mean the rules con-tained
in 10 NCAC 14K through 140 of
the North Carolina Administrative Code
and published in Division publication,
Licensure Rules for MH/DD/SA Facili-ties,
APSM 40-2.
(14) "Minimal subject content" means the
following list of subjects which shall be
addressed in the educational portion of
any treatment program serving DWI
offenders:
(a) Effects of Alcohol and Drugs on the
1064 9:14 NORTH CAROLINA REGISTER October 14, 1994
PROPOSED RULES
Body/Brain;
(b) The Nature of Denial;
(c) Disease Concept of Chemical Depen-dency;
(d) Progression of Disease and Recovery
(Jellinek Chart);
(e) Chemical Dependency and the Family;
(f) Introduction to Self-Help Groups/ 12
Step Recovery Programs;
(g) Relapse Prevention and Strategies for
Recovery; and
(h) Safe Roads Act Penalties.
(15) "Special service plan" means a plan for
persons who exhibit unusual circumstanc-es,
such as severe hearing impairment;
other physical disabilities; concurrent
psychiatric illness; language and commu-nication
problems; intractable problems
of distance, transportation and schedul-ing;
and chronic offenders with multiple
unsuccessful treatment experiences.
(16) "Standardized Test" means an instrument
approved by the Department of Human
Resources, with documented reliability
and validity, which serves to assist the
assessment agency or individual in deter-mining
if the client has a substance abuse
handicap. A current listing of the ap-proved
standardized tests may be
obtained by writing the DWI/Criminal
Justice Branch, Division of
MH/DD/SAS, 325 N. Salisbury Street,
Raleigh, NC 27603.
(17) "Substance Abuse Handicap" means a
degree of dysfunction directly related to
the recurring use/abuse of an impairing
substance.
the expiration date.
(c) The facility providing the recommended
treatment or education shall have the client sign
the appropriate release of information, and
progress reports shall be filed with the court or the
Department of Correction at intervals not to
exceed six months.
(d) Upon completion of the recommended
treatment or ADETS service, the agency shall:
(1) forward the top page of the completed
DMH Form 508 to the DWI/Criminal
Justice Branch, DMH/DD/SAS; and
(2) retain, for a period of at least five
years, the appropriate page of the form,
and distribute the remaining pages to
the offender and the court as specified
on the bottom of the form.
(e) In the event that an assessment or treatment
agency ceases to provide DWI-related services, the
agency shall notify, in writing, the DWI Criminal
Justice Branch to assure that all DMH Form 508s
and other related documents specified in G.S. 20-
179(m) are properly processed.
(f) By February 15 of each year, all assessing
agencies shall forward, in writing, to the
DWI/Criminal Justice Branch of the Division the
following information on the previous year's
activities, which shall include but need not be
limited to the number of:
(1) pre-trial assessments conducted;
(2) post trial assessments conducted;
(3) individuals referred to ADETS; and
(4) substance abuse handicaps identified
and the recommended levels of
treatment.
Statutory Authority G. S. 20-1 79(m).
Statutory Authority G.S. 20-138.1; 20-179;
122C-3.
TITLE 11 - DEPARTMENT OF
INSURANCE
.0319 REPORTING REQUIREMENTS
(a) The assessment portion of the DMH Form
508 shall be completed for each client who
receives a DWI substance abuse assessment. An
initial supply of this form may be obtained from
the DWI/Criminal Justice Branch of the
DMH/DD/SAS, 325 N. Salisbury Street, Raleigh,
N.C. 27603.
(b) The assessment portion of DMH Form 508
shall be signed by a certified alcoholism, drug
abuse, or substance abuse counselor. The date of
expiration of that professional's certification shall
be indicated on the client's Certificate of
Completion and no assessment shall be signed after
Notice is hereby given in accordance with G.S.
150B-21.2 that the N.C. Department of Insurance
intends to amend rules cited as 11 NCAC 6A .0801
- .0806, .0808 - .0809 and .0811.
1 he proposed effective date of this action is
January 1, 1995.
1 he public hearing will be conducted at 10:00
a.m. on November 8, 1994 at the Dobbs Building,
3rd Floor Hearing Room, 430 N. Salisbury Street,
Raleigh, NC 27611.
9:14 NORTH CAROLINA REGISTER October 14, 1994 1065
PROPOSED RULES
lYeason for Proposed Action: Pursuant to recom-mendations
made by continuing education advisory
committee in compliance with G.S. 58-33-135, the
amendments clarify problems identified during the
first three years of the program.
(comment Procedures: Written comments may be
sent to George Brown at 430 N. Salisbury Street,
Raleigh, N.C. 27611. Oral presentations may be
made at the public hearing. Anyone having ques-tions
should call George Brown at (919) 733-7487
or Ellen Sprenkel at (919) 733-4529.
CHAPTER 6 - AGENT SERVICES
DIVISION
SUBCHAPTER 6A - AGENT SERVICES
DIVISION
SECTION .0800 - CONTINUING
EDUCATION
.0801 DEFINITIONS
As used in this Section:
(1) "Cluster of courses" means a number of
courses, each of which is less than +30
100 minutes in length, but altogether +30
100 minutes or more in length, that are
offered within one state or national pro-gram
or convention.
(2) "Course" means a continuing education
course directly related to insurance prin-ciples
and practices or a course designed
and approved specifically for licensees;
but does not mean a business course of a
general nature or an insurance marketing
or sales course.
(3) "Disinterested third party" means a per-son
not concerned, with respect to possi-ble
gain or loss, in the result of a pend-ing
course final examination.
(4) "Distance learning" means an educational
program in which the licensee and the
instructor are in different physical loca-tions
and interact with each other through
various methods of telecommunication.
(5) "Dual credit course" means a continuing
education course that contains material
that qualifies for both life and health
insurance ICECs and property and liabili-ty_
insurance ICECs.
{$) "Insurance continuing education credit
or "ICEC"" means a value assigned to a
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