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rBr/v<s\=N/74-34/A.2/NJ67 ne RECEIVED AUG 3 1994 KATHT^TNE R E\1ERETT LAW LII?RARY NORTH CAROLINA REGISTER IN THIS ISSUE 3 ^IN LBGIBUS^ EXECUTIVE ORDERS IN ADDITION Voting Rights Act PROPOSED RULES Environment, Health, and Natural Resources Human Resources Insurance Justice Secretary of State LIST OF RULES CODIFIED RRC OBJECTIONS CONTESTED CASE DECISIONS ISSUE DATE: August 1, 1994 Volume 9 • Issue 9 • Rages 588 - 666 INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATrVE 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-2 1 .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 Register is 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 150B of the General Statutes. Any agency intending to adopt, amend, or repeal a rule must fint 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 15 days must elapse following publication of the notice in the North Carolina Registerhefore 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 temp rary rules. Within 24 hours of submission to OAH, the Codifier Rules must review the agency's written statement of findings of ne< for the temporary rule pursuant to the provisions in G.S. 150B-21.1. the Codifier determines that the findings meet the criteria in G. 150B-21.1, the rule is entered into the NCAC. If the Codifi determines that the findings do not meet the criteria, the rule is retumt to the agency. The agency may supplement its findings and resubn the temporary rule for an additional review or the agency may respoi that it wiU remain with its initial position. The Codifier, thereafter, w enter the rule into the NCAC. A temporary rule becomes effecti either when the Codifier of Rules enters the rule in the Code or on I sixth business day after the agency resubmits the rule without chanj The temporary rule is in effect for the period specified in the rule or 1 days, whichever is less. An agency adopting a temporary rule mi begin rule-making procedures on the permanent rule at the same tii the temporary rule is filed with the Codifier. NORTH CAROLINA ADMINISTRATIVE CODE The North Carolina Administrative Code (NCAC) is a compilati* and index of the administrative rules of 25 state agencies and occupational licensing boards. The NCAC comprises approximate 15,000 letter size, single spaced pages of material of which appro; mately 35% is changed aimually. Compilation and publication of t NCAC is mandated by G.S. 150B-21.18. The Code is divided into Titles and Chapters. Each state agency assigned a separate title which is further broken down by cl 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 ^ dollars and 50 cents ($2.50) for 10 pages or less, plus fifte cents ($0.15) per each additional page. (2) The full publication consists of 53 volumes, totaling excess of 15,000 pages. It is supplemented monthly w replacement pages. A one year subscription to the f publication including supplements can be purchased seven hundred and fifty doDars ($750.00). Individual v umes may also be purchased with supplement service. I newal subscriptions for supplements to the initial pubUcati are available. Requests for pages of rules or volumes of the NCAC should directed to the Office of Administrative Hearings. CITATION TO THE NORTH CAROLINA REGISTER The North Carolina Register is cited by volume, issue, pi number and date. 1:1 NCR 101-201, April 1, 1986 refers to Vohi 1 , Issue 1 , pages 101 through 201 ofthsNorth Carolina Registerissi on April!, 1986. FOR INFORMATION CONTACT: Office of Administra-tive Hearings, ATTN: Rules Division, P.O. Drawer 27447, Raleigh, North Carohna 2761 1-7447, (919) 733-2678. NORTH CAROLINA REGISTER ISSUE CONTENTS I. EXECUTIVE ORDERS Executive Orders 54-58 . 588 II, IN ADDITION Voting Rights Act 594 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 as. 125-11.13. in. PROPOSED RULES Environment, Health, and Natural Resources Environmental Management .... 616 Human Resources Medical Assistance 597 Social Services 595 Insurance Medical Database Commission . . 605 Justice N.C. Alarm Systems Licensing Board 614 Secretary of State Securities Division 616 rV. LIST OF RULES CODIFIED ... 635 V. RRC OBJECTIONS 643 VI. CONTESTED CASE DECISIONS Index to ALJ Decisions 647 Text of Selected Decisions 93 OSP 1607 655 94 EHR 0035 660 VII. CUMULATIVE INDEX 664 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 T flst Day to Submit toRRC ** EarUest EflFective 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. Time is computed according to 26 NCAC 2B .0103 and the Rules of Civil Procedure, Rule 6. * An agency must accept comments for at least 30 days after the proposed text is published or until the date of any public hearing, whichever is longer. See G.S. 150B-21. 2(f) for adoption procedures. ** The "Earliest Effective Date " is computed assuming that the agency follows the publication schedule 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. Revised 03/94 EXECUTIVE ORDERS EXECUTIVE ORDER NO. 54 TO CREATE THE NORTH CAROLINA HEALTH CARE INFORMATION AND COMMUNICATIONS ALLL^NCE WHEREAS, the provision of high quality health care to all residents is a desirable state objective; WHEREAS, optimizing the use of health care resources is necessary for all residents to receive high quality health care at reasonable cost; WHEREAS, state government has need of detailed, current information on the quantity, quality, content, and cost of health care services rendered in the State of North Carolina for purpos-es of policy development and implementation of health care reform; WHEREAS, the technology to allow interactive and real time exchange of medical information is necessary to optimize the use of health care re-sources on a continuous basis; WHEREAS, the public sector must work with the private sector to develop information, telecom-munications and telemedicine technologies applica-ble to health care in all settings; WHEREAS, the development of a statewide health care information and telecommunications network is the most logical next step in meeting these goals; and WHEREAS, upon direction by me the Articles of Incorporation of the North Carolina Health Care Information and Communications Alliance, Inc., a North Carolina non-profit corporation, have been filed with the Secretary of State of North Carolina and the formalities of organization of said corpora-tion have been effected; NOW, THEREFORE, by the power vested in me as Governor by the Constitution and laws of North Carolina, IT IS ORDERED: Section 1. Establishment The North Carolina Health Care Information and Communications Alliance, Inc. (the "Alliance") is hereby established. Section 2. Powers and Duties of the Alliance The Alliance shall be operated in the public interest exclusively for charitable, scientific and educational purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code (or the corresponding provision of any future federal tax law), including, without limiting the generality of the foregoing, to foster the development and implementation of a statewide health care informa-tion system for the purpose of improving the delivery, quality, accessibility and efficiency of health care services in North Carolina by utiliza-tion of advanced information, telecommunications, and telemedicine technologies. Solely for the above purposes, but not by way of limitation, the Alliance is empowered: A. To research, test, develop and promote the optimum application of information, telecommunications, and telemedicine technologies to health care services in all settings; B. To effect the on-going development and implementation of open architecture, interoperable, integrated and interactive information systems in health care in all settings with fully articulated linkages to a statewide health care information net-work and with attention to national and international health care information systems and standards; C. To effect the on-going design, develop-ment and implementation of distributed database management capability on a scale necessary to support a wide range of applications on the health care infor-mation network including, among others, clinical, emergency response, administra-tive, research and educational applica-tions; D. To foster development and installation of on-line standardized, computerized medi-cal record and information systems in regional medical centers to enable utiliza-tion by remote providers of centralized diagnostic, treatment planning, expert consultation services, and medical refer-ence, resource and traimng materials, with interactive question, answer and messaging capabilities; E. To improve health care information systems utilized by participants in com-munity- level health care delivery net-works comprised, among others, of hospitals, clinics, physician and dental offices, group practices, emergency medical systems, nursing homes, home care services, pharmacies, company and school medical and wellness programs. 9:9 NORTH CAROLINA REGISTER August 1, 1994 588 EXECUTIVE ORDERS social service agencies, medical, nursing and health administration schools, and telemedicine providers; F. To assist small and remote rural hospi-tals, clinics, provider groups and other health-related organizations in becoming an integral part of the statewide health care information system; G. To provide education and training in, and coordination with respect to, the use of information, telecommunications, and telemedicine technologies by health care providers, suppliers, patients, educators and public agencies; H. To provide to the State of North Carolina and the United States federal government and other governmental units data and analysis for the purpose of health care policy development and decision-making; I. To provide a mechanism for on-going evaluation of hardware and software performance, clinical effectiveness and administrative efficiency of the statewide health care information system and to provide a mechanism for feedback, rede-sign and upgrade of system capabilities; J. To support the adoption and implementa-tion of standards for computerized patient records and computerized patient histo-ries; K. To support clinical and health services research by providing confidentiality-protected patient histories and other information databases for use by qualified f)ersonnel; L. To encourage the development of emerg-ing businesses in the medical informa-tion, computer science, telecommunica-tions, and telemedicine fields in North Carolina through research and education; and M. To exercise all rights and powers con-ferred by the laws of North Carolina upon nonprofit corporations. Section 3. Board of Directors. Consistent with the Articles of Incorporation of the Alliance, the members of the Board of Direc-tors shall represent each of the following classes of members: (i) major medical centers; (ii) rural health care centers or organizations; (iii) telecom-munications and information technology compa-nies; (iv) pharmaceutical, clinical trial companies and health care applications device development and manufacturing companies; (v) other health care providers, local public health departments and nonprofit organizations; and (vi) persons who represent the interests of the State of North Caroli-na. The initial directors of the Alliance shall serve until their successors are duly elected and qualified as set forth in the Articles of Incorporation and By-Laws of the Alliance. Section 4. Chair of the Board. The Governor shall appoint the Chair of the Board of Directors of the Alliance to serve until the third annual meeting of members of the Alli-ance. Section 4. Responsibilities o{ the Board of Directors in the First Year of Alliance Opera-tions. The Board of Directors shall complete the fol-lowing tasks in the first year of operations: A. Review and, if necessary, refine the By-laws of the Alliance. B. Take such steps as are necessary to apply for and receive certification as an Internal Revenue Code Section 501(c)(3) non-profit corporation; C. Identify initiatives to be undertaken im-mediately to effect the purposes of the Alliance and make arrangements to im-plement these initiatives; D. Develop and adopt a six-year work plan for the Alliance, to be updated as neces-sary but no less than every two years; E. Develop and adopt a proposal for staffing the Alliance; F. Develop and adopt an operating budget for the Alliance; G. Op)en Alliance membership to a range of health provider organizations and health care information technology corporations, each of which, by virtue of its research, experience, services and/or products, will bring to the Alliance assets and commit-ments necessary to achieve the goals of the Alliance as delineated in this Order and the Alliance's corpxjrate charter; and H. Establish the terms for Alliance member-ship, a fee schedule for membership participation in the Alliance, and other funding sources such that the Alliance will be self-sustaining and not dependent on government financing. This Order shall be eflFective immediately and shall remain in effect until rescinded. 589 9:9 NORTH CAROLINA REGISTER August 1, 1994 EXECUTIVE ORDERS E)one in the Capital City of Raleigh, this 1st day of July, 1994. EXECUTIVE ORDER NO. 55 NORTH CAROLINA - HEAD CTART COLLABORATION PROJECT ADVISORY COUNCIL WHEREAS, the State's impoverished children will be more effectively assisted if local, state, and national service resources and responsibilities are shared; and WHEREAS, this pooling of resources and re-sponsibilities can be better achieved if the various service providers for impoverished children have a forum for communicating ideas and coordinating collaborative projects; NOW, THEREFORE, by the authority vested in me as Governor by the Constitution and laws of North Carolina, IT IS ORDERED: Section 1. Establishment. The North Carolina ~ Head Start Collaboration Project Advisory Council is hereby established. Section 2. Membership. (a) The following individuals or their designees shall serve as members of the Council: (1) The Senior Education Advisor in the Office of the Governor; (2) The Secretary of Human Resources; (3) The Secretary of Environment, Health, and Natural Resources; (4) The Secretary of Commerce; (5) The Director of the Division of Family Development in the Department of Hu-man Resources; (6) The Director of the Division of Child Development in the Department of Hu-man Resources; (7) The Director of the Division of Medical Assistance in the Department of Human Resources; (8) The Director of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in the Depart-ment of Human Resources; (9) The Director of the Division of Social Services in the Department of Human Resources; (10) The Director of the Office of Rural Health and Development Services in the Department of Human Resources; (11) The Director of the Division of Vocation-al rehabilitation Services in the Depart-ment of Human Resources; and (12) A Representative from the North Caroli-na Interagency Coordinating Council. (b) The following individuals or their designees shall be invited to serve as members of the Coun-cil: (1) The President of the System of Commu-nity Colleges; (2) The Superintendent of Public Instruction; (3) The President of the North Carolina Head Start Association; (4) The President of the North Carolina Partnership for Children, Inc.; and (5) The President of the North Carolina Community Action Association. (c) In addition, nine other members shall be named by the Governor, of which at least three shall be former Head Start participants or parents. Five of these members shall serve an initial term of four years. Four of these members shall serve an initial term of two years. Thereafter, all terms shall be for four years. Section 3. Chair. The Governor shall designate the chair of the Council, who shall serve at his pleasure. Section 4. Meetings. The Council shall meet at least quarterly at the call of the chair. Section 5. Purpose. The purpose of this Council is to build coopera-tion between Head Start and other programs for impoverished children to ensure these children the fullest possible access to such programs within North Carolina. It creates a forum for state agencies, Head Start representatives, private businesses, and other appropriate organizations to develop an understanding among themselves of the importance of collaboration among the various existing service programs for impoverished chil-dren. Section 6. Duties. Together with the Head Start Coordinator within the Department of Human Resources, the Council shall: (a) Identify possible projects for collabora-tion between state and Head Start agen-cies; (b) Sponsor and advise such collaborative ventures; and 9:9 NORTH CAROLINA REGISTER August 1, 1994 590 EXECUTIVE ORDERS (c) Serve as an information resource con-cerning the goals and objectives of such inter-agency collaborative projects. The office of the Head Start Coordinator shall serve as the central collection and dis-semination point for this information. Section 7. Administration. Administrative support for the Council and its subcommittees shall be provided by the Special Assistant for Head Start in the Department of Human Resources ("DHR"). The U.S. Depart-ment of Health and Human Services has provided $100,000 for the Council under grant number 90- CD-0997, "Head Start in North Carolina: Build-ing a Better Partnership." This amount includes reimbursement for necessary subsistence and travel expenses. Section 8. Effect on Other Executive Orders. Executive Order Number 186 of the Martin Administration is hereby rescinded. This Order shall be effective immediately. Done in Raleigh, North Carolina, this the 7th day of July, 1994. EXECUTIVE ORDER NO. 56 GOVERNOR'S TASK FORCE ON HEALTH OBJECnVES FOR THE YEAR 2000 By the authority vested in me as Governor by the Constitution and laws of the State of North Caroli-na, FT IS ORDERED: Section i. Establishment and Rescission of Prior Orders. The Governor's Task Force on Health Objectives for the Year 2000 ("Governor's Task Force") is hereby re-established. The Governor's Task Force established herein is the successor organization to the one established in Executive Orders 148 and 176 of the Martin Administration. Those Orders are hereby rescinded. Section 2. Membership. The Governor shall appoint 25 persons including a Chair, to serve four year terms. Thereafter, all vacancies shall be filled by the Governor. The membership shall include representatives from the following: (a) Department of Human Resources; (b) Department of Enviroimient, Health, and Natural Resources; (c) Association of North Carolina Boards of Health; (d) North Carolina Hospital Association; (e) North Carolina Medical Society; (f) North Carolina Academy of Family Physicians; (g) North Carolina Association of Local Health Directors; (h) The University of North Carolina School of Public Health; (i) North Carolina Citizens for Business and Industry; (j) North Carolina Commission on Indian Affairs; (k) North Carolina Association of County Commissioners; (1) NAACP; (m) North Carolina Minority Health Council; (n) Governor's Council on Physical Fitness and Health; (o) North Carolina Dental Society; (p) North Carolina Nurses' Association; (q) Old North State Medical Society; and (r) Eight at-large members, including a representative of local education. Section 3. Functions. A. The Governor's Task Force shall meet regu-larly at the call of the Chair. B. The Governor's Task Force shall provide encouragement and guidance to communities establishing their own local groups to accomplish the objectives developed by the Governor's Task Force. C. The Governor's Task Force shall have the power to designate the Healthy Carolinians 2000 Task Forces, comprised of representatives of public and private organizations which support the goals of the Governor's Task Force. They shall seek to further the objectives of the Governor's Task Force and they shall exist so long as the Governor's Task Force does, unless earlier termi-nated. Section 4. Administration. A. Administrative support for the Governor's Task Force shall be provided by the Department of Enviromnent, Health, and Natural Resources. Additional support shall be provided by the De-partment of Human Resources. B. Members of the Governor's Task Force shall be reimbursed for necessary travel and subsistence expenses as authorized under General Statutes 138- 5 and 138-6. Funds for the reimbursement of such expenses shall be made available from funds 591 9:9 NORTH CAROLINA REGISTER August 1, 1994 EXECUTIVE ORDERS authorized by the Department of Environment, Health, and Natural Resources. C. It shall be the responsibility of each Cabinet department to make every reasonable effort to cooperate with the Governor's Task Force in carrying out the provisions of this Order. This Executive Order shall become effective immediately. Done in Raleigh, North Carolina, this the 13th day of July, 1994. EXECUTIVE ORDER NO. 57 GEORGIA EMERGENCY FLOOD RELIEF WHEREAS, on July 7, 1994, the United States Department of Transportation declared a regional emergency justifying an exemption from 49 C.ER. 390-399 (Federal Motor Carrier Safety Regulations) for a period of thirty days in response to the severe flooding in the Georgia area; NOW, THEREFORE, pursuant to N.C.G.S. 166A-6(c), the North Carolina Emergency Management Act, by the authority vested in me as Governor by the laws and Constitution of the State of North Carolina, and with the concurrence of the Council of State, IT IS ORDERED: Section 1. The State of North Carolina, under the supervision and direction of its Department of Transportation, shall waive weight restrictions on the gross weight of vehicles transporting food, supplies, and equipment to the victims of the severe flooding in the State of Georgia, subject to the following conditions: (a) vehicle weight shall not exceed the maximum gross vehicle weight criteria established by the manufecturer or 90,000 pounds gross vehicle weight, whichever is less. (b) Tandem axle weights shall not exceed 50,000 pounds and single axle weights shall not exceed 25,000 pounds. (c) The vehicles shall, upon entering the State of North Carolina, stop at the first available vehicle weigh station and produce identification sufficient to establish that the load contained thereon is part of the relief effort for the severe flooding in the State of Georgia. (d) This Order shall not be in effect on bridges posted pursuant to N.C.G.S. 136- 72. Section 2. The vehicles described above shall be exempt from the vehicle licensing and tax requirements of N.C.G.S. 105, Subchapter 5, Article 36B (motor fuels tax). Section 3. As a result of the 7 July 1994 declaration of regional emergency by the United States Department of Transportation and its corresponding exemption from 49 C.F.R. 390-399, nonparticipants in North Carolina's International Registration Plan shall be permitted to operate in North Carolina without penalty under N.C.G.S. 20-382. Section 4. If returning vehicles are loaded with some other backhaul, all normal weight and permit restrictions apply. Section 5. The North Carolina Department of Transportation shall enforce the conditions set forth in Sections 1, 2, and 3 in a manner which would best accomplish the purposes of this Order without endangering motorists on North Carolina highways. This Order is effective immediately and shall remain in effect for thirty days. Done in the Capital City of Raleigh, North Carolina, this the 14th day of July, 1994. EXECUTIVE ORDER NO. 58 PUBLIC GREENWAYS ACROSS STATE LANDS WHEREAS, greenways are linear open spaces that can provide many benefits to the State's environment and growing population; and WHEREAS, North Carolina has earned a national reputation for greenways because approximately forty local governments have begun greenway programs under their own initiative; and WHEREAS, the environmental and socioeconomic benefits of greenways are numerous, and have been set out in the North Carolina Greenways Advisory Panel Report to the Governor; and 9:9 NORTH CAROLINA REGISTER August 1, 1994 592 EXECUTIVE ORDERS WHEREAS, existing and potential greenways and their related benefits typically cross the jurisdictional boundaries of governments; and WHEREAS, state support for locally initiated greenways is unfocused because responsibility for the various functions through which greenway benefits arise are distributed among separate departments; and WHEREAS, there are opportunities to improve state government responsiveness to local governments in their efforts to develop greenway systems for the environmental, socioeconomic, and overall quality of life benefits of our citizens; NOW, THEREFORE, by the power vested in me as Governor by the laws and Constitution of the State of North Carolina, IT IS ORDERED: Section 1. Policy. (a) It shall be the policy of the State to make every reasonable effort to anticipate and otherwise accommodate local government requests related to the development of greenway systems. (b) In recognition of the broad and comprehensive character of greenway benefits and the narrow and specific focus of State government programs, it shall be the responsibility of every State agency to cooperate between and among themselves, to the maximum extent feasible, to address the multiple objectives of local greenway development. (c) To the extent practicable, institutional solutions shall be implemented to enhance the development of greenway systems, rather than resolving issues on a case-by-case basis. Section 2. Action. The following actions shall be taken as initial steps toward realization of the "Public Greenways across State Lands" recommendation presented in the North Carolina Greenway Advisory Panel's Report to the Governor: (a) The State Property Office and the Department of Transportation shall work with local governments to integrate local greenways with State lands. Every reasonable effort shall be made to integrate greenways with State lands in a manner that is compatible with the function and management of the property. Severance of greenway corridors is to be avoided whenever possible, and the (b) identification of comparable alternative routes is preferred to the exclusion of greenways altogether, (d) Appropriate easement conditions may be negotiated wdth the interested local governments to mitigate for the greenway corridor and assure adequate maintenance and management. Section 3. Role of the Department of Environment. Health, and Natural Resources. (a) The Department of Environment, Health, and Natural Resources shall continue the leadership role it began with establishment of the North Carolina Greenways Advisory Panel (NCGAP). (b) The Department shall encourage, coordinate and monitor progress toward fulfillment of the recommendations presented in the NCGAP Report to the Governor, and the provisions of this Order. (c) The Department shall emphasize the development of educational information on greenways for use within State programs, and through them to local governments and individual citizens. This Executive Order shall be effective immediately. Done in the Capital City of Raleigh, North Carolina, this the 14th day of July, 1994. (c) 593 9:9 NORTH CAROLINA REGISTER August 1, 1994 IN ADDITION I his Section contains public notices that are required to be published in the Register or have been approved by the Codifier of Rules for publication. U.S. Department of Justice Civil Rights Division DLP:DLK:NG:lss:gmh Voting Section DJ 166-012-3 P.O. Box 66128 94-2134 Washington, DC. 20035-6128 July 11, 1994 Z. Creighton Brinson, Esq. Taylor, Brinson & Moore P. O. Drawer 308 Tarboro, North Carolina 27886-0308 Dear Mr. Brinson: This refers to the annexations (Ordinance Nos. 92-5, 92-6 and 94-5) and the designation of the annexed areas to election districts of the City of Tarboro in Edgecombe County, North Carolina, submitted to the Attorney General pursuant to Section 5 of the Voting Rights Act of 1965, as amended, 42 U.S.C. 1973c. We received your submission on May 10, 1994. The Attorney General does not interpose any objection to the specified changes. However, we note that Section 5 expressly provides that the failure of the Attorney General to object does not bar subsequent litigation to enjoin the enforcement of the changes. See the Procedures for the Administration of Section 5 (28C.ER. 51.41). Sincerely, Deval L. Patrick Assistant Attorney General Civil Rights Division By: Steven H. Rosenbaum Chief, Voting Section 9:9 NORTH CAROLINA REGISTER August I, 1994 594 PROPOSED RULES TITLE 10 - DEPARTMENfT OF HUMAN RESOURCES I\otice is hereby given in accordance with G.S. 150B-21.2 that the Social Services Commission intends to amend rules cited as 10 NCAC 35F .0306. 43L .0201, adopt 41F .0706 and .0812. 1 he proposed effective date of this action is November 1 , 1994. 1 he public hearing will be conducted at 10:00 a.m. on September 7, 1994 at the Albemarle Building, Room 943-2. 325 N. Salisbury Street. Raleigh. NC 27603. ixeason for Proposed Action: 10 NCAC 35F . 0306 - This rule is being amended to correct an inadvertent error in the service cost-sharing schedule. 10 NCAC 41F .0706 & 41F .0812 - These rules are being proposed to better protect the health, safety, and well-being of foster children by requiring that crimiruil record checks be conducted on all foster parent applicants and by disqualifying applicants who have been convicted of certain crimes from becoming foster parents. 10 NCAC 43L .0201 - To clarify that Adult Placement services are reimbursable under the Social Services Block Grant. Lyomment Procedures: Comments may be presented in writing anytime before or at the public hearing or orally at the hearing. Time limitsfor oral remarks may be imposed by the Commission Chairman. Any person may request copies of these rules by calling or writing to Shamese Ransome. Division of Social Services, 325 N. Salisbury Street, Raleigh, NC 27603; 919/733-3055. CHAPTER 35 - FAlVflLY SERVICES SUBCHAPTER 35F - SERVICE COST-SHARING SECTION .0300 - SERVICE COST SHARING REQUIREMENTS .0306 SERVICE COCT-SHARING SCHEDULE (a) The amount of cost-sharing to be requested from clients shall be in accordance with the following cost-sharing schedule: COST-SHARING SCHEDULE Size of Income Unit Minimum Percentage (Percentage of Service Cost) Monthly Estab. Income 1 $ 852-970 971-1,090 1,091-1,209 1,210-1,328 1,329-1,447 1 ,448-above 2 $1,149-1,301 1,302-1,516 1,517-1,600 1,601-1,761 1,762-1,952 1 ,953-above 3 $1,446-1,648 1,649-1,850 1,851-2,053 2,054-2,255 2,256-2,458 2,459-above 30% 40% 50% 60% 75% 100% Monthly 4 $1,744-1,987 5 $2,041-2,326 6 $2,339-2,665 30% 595 9:9 NORTH CAROLINA REGISTER August 1, 1994 PROPOSED RULES Estab. Income 1,988-2,231 2,327-2,612 2,666-2,992 40% 2,232-2,475 2,613-2,897 2,993-3,320 50% 2,476-2,719 2,898-3,183 3,321-3,647 60% 2,720-2,963 3,184-3,469 3,648-3,975 75% 2,964-above 3,470-above 3,976-above 100% Monthly 7 $2,636-3,004 8 $2,934-3,343 9 $3,231-3,««83 30% Estab. Income 3,005-3,373 3,344-3,754 3,684-4,135 40% 3,374-3,743 3,755-4,165 4,136-4,587 50% 3,744-4,112 4,166-4,576 4,588-5,040 60% 4,113-4,481 4,577-4,986 5,041-5,492 75% 4,482-above 4,987-above 5,493-above 100% 10 11 12 Monthly $3,529-4,022 $3,826-4,361 $4,124-4,700 30% Estab. Income 4,023-4,516 4,362-4,897 4,701-5,277 40% 4,517-5,010 4,898-5,432 5,278-5,856 50% 5,011-5,504 5,433-5,968 5,857-6,432 60% 5,505-5,998 5,969-6,504 6,433-7,009 75% 5,999-above 6,505-above 7,010-above 100% Established Income (Estab. Income) as used in this Rule is defined in 10 NCAC 35E .0104, which is incorporated by reference, including subsequent amendments and editions; Income Unit as used in this Rule is defined in 10 NCAC 35E .0103, which is incorporated by reference, including subsequent amendments and editions. Copies of these Rules may be obtained from the Office of Administrative Hearings, Post Office Drawer 27447, Raleigh, N.C. 27611-7447, (919) 733-2678, at a cost of two dollars and fifty cents ($2.50) for up to ten pages and fifteen cents ($.15) for each additional page at the time of adoption of this Rule. (b) Agencies must establish a cost-sharing schedule for clients whose gross monthly income is less than the established income as defined in 10 NCAC 35E .0104, which is incorporated by reference, including subsequent amendments and editions. Copies of these Rules may be obtained from the Office of Administrative Hearings, Post Office Drawer 27447, Raleigh, NC 2761 1-7447, (919) 733-2678, at a cost of two dollars and fifty cents ($2.50) for up to 10 pages and fifteen cents ($.15) for each additional page at the time of adoption of this Rule. In developing this schedule, agencies may establish percentages of the cost of the service or an amount that will be requested from clients. (c) Agencies must distribute a copy of the cost-sharing schedule to all clients receiving services subject to cost-sharing as defined in Rule .0301 of this Section. The cost-sharing schedule must reflect the income ranges and minimum percentages outlined in Paragraph (a) of this Rule. (d) Agencies may negotiate higher service cost-sharing percentages or lower service cost-sharing percentages than those outlined in Paragraph (a) of this Rule, based on individual client circumstances. The client will determine the amount of service cost-sharing he will pay based upon his individual financial circumstances. Statutory Authority as. 143B-153. CHAPTER 41 - CHILDREN'S SERVICES SUBCHAPTER 41F - LICENSING OF FAMILY FOSTER HOMES SECTION .0700 - STANDARDS FOR LICENSING .0706 CRIMINAL CONVICTIONS An applicant shall not be eligible for licensure as a foster parent if the applicant, or an^ member of the applicant's household 14 years or older, has been convicted or entered a plea of no contest to a crime, and there is a relationship between the nature of the crime and the ability of the prospec-tive foster parent to assure the health, safety and well being of foster children: provided a license shall be denied if the applicant or any member of the household 14 years or older has been convicted or entered a plea of no contest to a felony involv-ing violent behavior, unlawful sexual conduct, minor children or controlled drugs. 9:9 NORTH CAROLINA REGISTER August 1, 1994 596 PROPOSED RULES Statutory Authority G.S. 131D-10.5; 143B-153. SECTION .0800 - LICENSING REGULATIONS AND PROCEDURES .0812 CRIMINAL BACKGROUND CHECKS The supervising agency shall conduct a criminal background investigation through access of the Department of Corrections Inmate/Probation Inquiry System for all members of the foster family household 14 years and older at the time of initial application and annually thereafter. The results of the criminal background investigation shall be reported to the Division of Social Services on the application form. Statutory Authority G.S. 131D-10.5; 143B-153. CHAPTER 43 - SERVICES PROGRAM PLAN SUBCHAPTER 43L - SOCIAL SERVICES BLOCK GRANT SECTION .0200 - SERVICES TO BE PROVIDED .0201 SOCLU. SERVICES BLOCK GRANT FUNDED SERVICES Services which may be reimbursed with Social Services Block Grant Funds are: (1) adjustment services for the blind or visu-ally impaired; (2) adoption services; (3) adult developmental activity programs for individuals who are substantially mentally retarded or severely physically disabled; (4) adult placement services; (5) f4) before/after school and summer de-velopmental day centers for children who are mentally retarded; (6) f5^ child day care services; (7) i4>j chore services for the blind; (8) f^ community living services; (9) f8) day care services for adults; (10) i^ day treatment programs for children and adolescents who are emotionally disturbed; (11) ^W) delinquency prevention services; (12) tW-) developmental day centers for pre-school children who are mentally retard-ed; (13) {¥3r) early childhood intervention services for children who are mentally retarded or at high risk for mental retardation; (14) (4-^ employment and training support services; (15) (44) family planning services; (16) iiSj foster care services for adults; (17) (i4) foster care services for children; (18) (W) health support services; (19) f4-8) housing and home improvement services; (20) fW) individual and family adjustment services; (21) (30) in-home aide services (levels I through IV); (22) (^4) nutrition services; (23) f33) outpatient services for individuals of all disability groups; (24) {5^ partial hospitalization services for adults and elderly individuals who are acutely mentally ill or are substance abusers; (25) f34) personal and family counseling; (26) f35) preparation and delivery of meals; (27) f3^ problem pregnancy services; (28) i¥fj protective services for adults; (29) f3*) protective services for children; (30) (39) residential treatment for the emotion-ally disturbed; (31) f^O) residential treatment programs for children and adolescents who are emo-tionally disturbed; (32) i^^ residential treatment/rehabilitation programs for individuals who are alcohol or other drug abusers; (33) f^ respite care services; (34) (^^ social setting and non-hospital medi-cal detoxification services for individuals who are alcoholics; (35) 04) transitional residence programs for adult and elderly individuals who are mentally ill; (36) 0#) transportation services; (37) 0^ youth services. Statutory Authority 143B-153. G.S 108A-71; 1438-10; ****************** jyiotice is hereby given in accordance with G.S. 150B-21.2 that the DHR/Division of Medical Assistance intends to amend rules cited as 10 NCAC SOB . 031 1 and . 0403. 597 9:9 NORTH CAROLINA REGISTER August I, 1994 PROPOSED RULES The proposed effective date of this action L November 1, 1994. IS Ihe public hearing will be conducted at 1:30 p.m. on September 1, 1994 at the North Carolina Division of Medical Assistance, 1985 Umstead Drive, Room 297, Raleigh, NC 27603. iXeason for Proposed Action: Rules necessary to bring the State into compliance with federal law. C^omment Procedures: Written comments con-cerning these rules must be submitted by August 31, 1994, to: Division of Medical Assistance, 1985 Umstead Drive, Raleigh, NC 27603 ATTN: Clarence Ervin, APA Coordinator. Oral comments may be presented at the hearing. In addition, a fiscal impact statement is available upon written request from the same address. CHAPTER 50 - MEDICAL ASSISTANCE SUBCHAPTER SOB - ELIGIBILITY DETERMINATION SECTION .0300 - CONDITIONS FOR ELIGIBILITY .0311 RESERVE North Carolina has elected the option under Section 1902(f) of the Social Security Act to limit Medicaid eligibility for the aged, blind or the disabled to individuals who meet eligibility re-quirements more restrictive than those under Supplemental Security Income. Applicants for and recipients of Medicaid shall use their own resourc-es to meet their needs for living costs and medical care to the extent that such resources can be made available. Certain resources shall be protected to meet specific needs such as burial and transporta-tion and a limited amount of resources shall be protected for emergencies. (1) The value of resources currently available to any budget unit member shall be con-sidered in determining financial eligibil-ity. A resource shall be considered available when it is actually available and when the budget unit member has a legal interest in the resource and he, or some-one acting in his behalf, can take any necessary action to make it available, (a) Resources shall be excluded in deter-mining financial eligibility when the budget unit member having a legal interest in the resources is incompetent unless: (i) A guardian of the estate, a general guardian or an interim guardian has been lawfully appointed and is able to act on behalf of his ward in North Carolina and in any state in which such resources are located; or (ii) A durable power of attorney, valid in North Carolina and in any state in which such resource is located, has been granted to a person who is au-thorized and able to exercise such power. (b) When there is a guardian, an interim guardian, or a person holding a valid, durable power of attorney for a budget unit member, but such person is unable, foils, or refuses to act promptly to make the resources actually available to meet the needs of the budget unit mem-ber, a referral shall be made to the county department of social services of a determination of whether the guardian or attorney in fact is acting in the best interests of the member and if not, contact the clerk of court for interven-tion. The resources shall be excluded in determining financial eligibility pending action by the clerk of court. (c) When a Medicaid application is filed on behalf of an individual who: (i) is alleged to be mentally incompetent, (ii) has or may have a legal interest in a resource that affects the individual's eligibility, and (iii) does not have a representative with legal authority to use or dispose of the individual's resources, the individual's representative or family member shall be instructed to file within 30 calen-dar days a judicial proceeding to declare the individual incompetent and appoint a guardian. If the representa-tive or femily member either foils to file such a proceeding within 30 calendar days or fails to timely con-clude the proceeding, a referral shall be made to the services unit of the county department of social services for guardianship services. If the allegation of incompetence is support-ed by a physician's certification or 9:9 NORTH CAROLINA REGISTER August 1, 1994 598 PROPOSED RULES other competent evidence from sourc-es including but not limited to physi-cians, nurses, social workers, psy-chologists, relatives, friends or others with knowledge of the condition of the individual, the resources shall be excluded except as provided in Sub-items (l)(d) or (e) of this Rule. (d) The budget unit member's resources shall be counted in determining his eligibility for Medicaid beginning the first day of the month following the month a guardian of the estate, general guardian or interim guardian is appoint-ed, provided that after the appointment, property which cannot be disposed of or used except by order of the court shall continue to be excluded until completion of the applicable procedures for disposition specified in Chapters 1 or 35A of the North Carolina General Statutes. (e) When the court rules that the budget unit member is competent or no ruling is made because of the death or recov-ery of the member, his resources shall be counted except for periods of time for which it can be established by com-petent evidence from sources including but not limited to physicians, nurses, social workers, psychologists, relatives, friends or others with knowledge of the condition of the individual that the member was in fact incompetent. Any such showing of incompetence is sub-ject to rebuttal by competent evidence as specified herein and in Sub-item (l)(c) of this Rule. (2) The limitation of resources held for reserve for the budget unit shall be as follows: (a) For Family and Children's related categorically needy cases, one thousand dollars ($1,000) per budget unit; (b) For aged, blind or disabled cases and Family and Children's related medically needy cases, one thousand five hundred dollars ($1,500) for a budget unit of one person, two thousand two hundred fifty dollars ($2,250) for a budget unit of two persons and increases of one hundred dollars ($100.00) for each additional person in the budget unit over two, not to exceed a total of three thousand, fifty dollars ($3,050). (3) If the value of countable resources of the budget unit exceeds the reserve allowance for the unit, the case shall be ineligible: (a) For Family and Children's related cases and aged, blind or disabled cases pro-tected by grandfathered provisions, and medically needy cases not protected by grandfethered provision, eligibility shall begin on the day countable resources are reduced to allowable limits or ex-cess income is spent down, whichever occurs later; (b) For categorically needy aged, blind or disabled cases not protected by grand-fathered provisions, eligibility shall begin no earlier than the month count-able resources are reduced to allowable limits as of the first moment of the first day of the month. (4) Resources counted in the determination of financial eligibility for categorically needy and medically needy aid to the aged, blind, or disabled cases protected by grandfathered provisions are: (a) Cash on hand; (b) The current balance of savings accounts, except savings of a student saving his earnings for educational purposes; (c) The current balance of checking accounts; (d) Cash value of life insurance policies when the total face value of all policies that accrue cash value exceeds one thousand five hundred dollars ($1,500); (e) Equity in motor vehicles, including motor homes, determined to be non-essential according to Rule .0403 of this Subchapter; (f) Equity in excess of one thousand dollars ($1,(XX)) in motor vehicles, including motor homes, determined to be essential according to Rule .0403 of this Subchapter; (g) Stocks, bonds, mutual fund shares, certificates of deposit and other liquid assets; (h) Negotiable and salable promissory notes and loans; (i) Trust funds; (j) The portion of lump sum payments remaining after the month of receipt; (k) Individual Retirement Accounts or other retirement accounts or plans; (1) Equity in real property not used as the 599 9:9 NORTH CAROLINA REGISTER August 1, 1994 PROPOSED RULES homesite or not producing an income; (m) Value of burial spaces other than spaces designated for the eligible individual, the eligible individual's spouse, and the eligible individual's immediate family which includes the eligible individual's minor and adult children, stepchildren, and adopted children, brothers, sisters, parents, adoptive parents, and the spouses of those persons; (n) Salable remainder interest in life-estate property not used as the budget unit's homesite; (0) Patient accounts in long term care facilities. (5) Resources counted in the determination of financial eligibility for aid to categori-cally needy aged, blind or disabled cases not protected by grandfethered provisions are: (a) Cash on hand; (b) The balance of savings accounts, except savings of a student saving his earnings for educational purposes; (c) The balance of savings account, except for aged, blind or disabled individuals who have a plan for achieving self-support (PASS) that is approved by the Social Security Administration; (d) The balance of checking accounts less the current monthly income which had been deprosited to meet the budget unit's needs when reserve was verified or lump sum income from self-employment deposited to pay annual expenses; (e) Cash value of life insurance policies when the total face value of all policies that accrue cash value exceeds one thousand five hundred dollars ($1,500); (f) Trust fundst and annuities in accordance with 42 USC 1396p(d) and Mi (g) Stocks, bonds, mutual fund shares, certificates of deposit and other liquid assets; (h) Negotiable and salable promissory notes and loans; (i) Revocable burial contracts and burial trusts; (j) The portion of lump sum payments remaining after the month of receipt; (k) Individual Retirement Accounts or other retirement accounts or plans; (1) I^tient accounts in long term care fecilities ; (m) Equity in motor vehicles determined to be non-essential under Rule .0403 of this Subchapter or, if no motor vehicle is excluded as essential, any equity in excess of four thousand five hundred dollars ($4,500) in a motor vehicle; (n) Equity in real and/or personal property when the combined equities is six thousand dollars ($6,(XX)) or less and the property does not yield a net annual income of at least six percent of the equities; (o) Equity in real and/or personal property when the combined equities exceed six thousand dollars ($6,000); (p) Equity in personal property, subject to (5) (m) and (n) of this Rule, is limited to: (i) Mobile homes not used as homesite, (ii) Boats, boat trailers and boat motors, (iii) Campers, (iv) Farm and business equipment; (q) Equity in real property, subject to (5) (m) and (n) of this Rule, is limited to: (i) Value of burial spaces other than spaces designated for the eligible individual, the eligible individual's spouse, and the eligible individual's immediate family which includes the eligible individual's minor and adult children, stepchildren, and adopted children, brothers, sisters, parents, adoptive parents, and the spouses of those persons; (ii) Fee simple interest; (iii) Salable remainder interest; (iv) Tenancy by the entireties interest only. (6) Resources counted in the determination of financial eligibility for aid to medically needy aged, blind or disabled cases not protected by grandfethered provisions are: Cash on hand; The balance of savings accounts, except savings of a student saving his earnings for educational purposes; The balance of savings accounts, except for aged, blind or disabled individuals who have a plan for achieving self-support (PASS) that is approved by the Social Security Administration; (d) The balance of checking accounts less the current monthly income which had been deposited to meet the budget unit's (a) (b) (c) NORTH CAROLINA REGISTER August 1, 1994 600 PROPOSED RULES needs when reserve was verified or lump sum income from self-employment deposited to pay annual expenses; (e) Cash value of life insurance policies when the total face value of all policies that accrue cash value exceeds one thousand dollars ($1,000); (f) Trust fundst and annuities in accordance with 42 USC 1396p(d) and lei; (g) Stocks, bonds, mutual fund shares, certificates of deposit and other liquid assets; (h) Negotiable and salable promissory notes and loans; (i) Revocable burial contracts and burial trusts; (j) The portion of lump sum payments remaining after the month of receipt; (k) Individual Retirement Accounts or other retirement accounts or plans; (1) Patient accounts in long term care facilities; (m) Equity in motor vehicles determined to be non-essential under Rule .0403 of this Subchapter or, if no motor vehicle is excluded as essential, any equity in excess of four thousand five hundred dollars ($4,500) in a motor vehicle; (n) Equity in real property and f>ersonal property that does not produce a net annual income; (o) Equity in personal property, subject to (6)(m) of this Rule, is limited to: (i) Mobile homes not used as homesite, (ii) Boats, boat trailers and boat motors, (iii) Campers, (iv) Farm and business equipment; (p) Equity in real property, subject to Sub-item (6)(m) of this Rule, is limited to interest in real estate other than that used as the budget unit's homesite and includes: (i) Fee simple interest, (ii) Tenancy by the entireties interest only, (iii) Salable remainder interest, (iv) Value of burial spaces other than spaces designated for the eligible individual, the eligible individual's spouse, and the eligible individual's immediate family which includes the eligible individual's minor and adult children, stepchildren, and adopted (a) (b) (c) children, brothers, sisters, parents, adoptive parents, and the spouses of those jjersons. (7) Resources counted in the determination of financial eligibility for categorically needy Family and Children's related cases are: Cash on hand; The balance of savings accounts, including savings of a student saving his earnings for school expenses; The balance of checking accounts less the current monthly income which had been deposited to meet the budget unit's monthly needs when reserve was verified; The portion of lump sum payments remaining after the month of receipt; Cash value of life insurance policies owned by the budget unit; Revocable tf»9t Trust funds-j and annuities in accordance with 42 USC 1396p(d) and (e); Stocks, bonds, mutual fund shares, certificates of deposit and other liquid assets; Negotiable and salable promissory notes and loans; Revocable pre-paid burial contracts; Patient accounts in long term care facilities; Individual Retirement Accounts or other retirement accounts or plans; Equity in non-essential personal property limited to: Mobile homes not used as home. Boats, boat trailers and boat motors. Campers, Farm and business equipment; Equity in excess of one thousand five hundred dollars ($1 ,500) in one motor vehicle determined to be essential under Rule .0403 of this Subchapter; Equity in motor vehicles determined to be non-essential under Rule .0403 of this Subchapter; (m) Equity in real profjerty is limited to interest in real estate other than that used as the budget unit's homesite and is limited to: (i) Fee simple interest, (ii) Tenancy by the entireties interest only, (iii) Salable remainder interest, (iv) Value of burial plots. (d) (e) (f) (g) (h) (i) 0) (k) 0) (i) (ii) (iii) (iv) (V) (vi) 601 9:9 NORTH CAROLINA REGISTER August 1, 1994 PROPOSED RULES (a) (b) (c) (8) Resources counted in the determination of financial eligibility for medically needy Family and Children's related cases are: Cash on hand; The balance of savings accounts, including savings of a student saving his earnings for school expenses; The balance of checking accounts less the currently monthly income which had been deposited to meet the budget unit's monthly needs when reserve was verified or lump sum income from self-employment deposited to pay annual expenses; (d) Cash value of life insurance policies when the total fece value of all policies that accrue cash value exceeds one thousand five hundred dollars ($1,500); (e) Trust fiinds-; and annuities in accordance with 42 USC 1396p(d) and Mi (f) Stocks, bonds, mutual fund shares, certificates of deposit and other liquid assets; (g) Negotiable and salable promissory notes and loans; (h) Revocable prepaid burial contracts; (i) Patient accounts in long term care fecilities; (j) Individual Retirement Accounts or other retirement accounts or plans; (k) Equity in non-essential, non-income producing personal property limited to: (i) Mobile home not used as home, (ii) Boats, boat trailers and boat motors, (iii) Campers, (iv) Farm and business equipment, (v) Equity in motor vehicles determined to be non-essential under Rule .0403 of this Subchapter; (1) Equity in real property is limited to interest in real estate other than that used as the budget unit's homesite and is limited to: Fee simple interest. Tenancy by the entireties interest only. Salable remainder interest. Value of burial plots. (i) (ii) (iii) (iv) Authority G.S. 108A-54; 108A-55; 108A-58; 42 U.S.C. 703. 704 1396; 42 CF.R. 435.121; 42 C.F.R. 435.210; 42 CF.R. 435.711; 42 CF.R. 435.712; 42 CF.R. 435.734; 42 CF.R. 435.823; 42 CF.R. 435.840; 42 CF.R. 435.841; 42 CF.R. 435-845; 42 CF.R. 445.850; 42 CFR. 435.851; 45 CFR. 233.20; 45 CFR. 233.51; 42 U.S.C. 1396p(d) and (e). SECTION .0400 - BUDGETING PRINCIPALS .0403 RESERVE (a) The value of resources held by the client or by a financially responsible person shall be considered available to the client in determining countable reserve for the budget unit. (b) Jointly owned resources shall be counted as follows: (1) The value of resources owned jointly with a non-financially responsible person who is a recipient of another public assistance budget unit shall be divided equally between the budget units; (2) The value of liquid assets and personal property owned jointly with a non-financially responsible person who is not a client of another public assistance budget unit shall be available to the budget unit member if he can dispose of the resource without the consent and participation of the other owner or the other owner consents to and, if necessary, participates in the disposal of the resource; (3) The client's share of the value of real property owned jointly with a non-financially responsible p)erson who is not a member of another public assistance budget unit shall be available to the budget unit member if he can dispose of his share of the resource without the consent and participation of the other owner or the other owner consents to and, if necessary, participates in the disposal of the resource. (c) The terms of a separation agreement, divorce decree, will, deed or other legally binding agreement or legally binding order shall take precedence over ownership of resources as stated in Paragraphs (a) and (b) of this Rule, except as provided in Paragraph (o) of this Rule. (d) The reserve limit for the budget unit for aged, blind or disabled cases shall be determined as follows: (1) The reserve limit for two persons shall be allowed when spouses live together 9:9 NORTH CAROLINA REGISTER August 1, 1994 602 PROPOSED RULES in a private living situation or when the couple share the same room in long term care; (2) Allow the reserve limit for one person for the Community Alternative Program (CAP) client with a spouse at home and only count the resources that are available to the CAP client in determining his countable reserve; (3) The reserve limit for one person is allowed for the client who is in long term care and the spouse remains in the home; (4) The reserve allowance for one person is allowed for the client who is in long term care and the spouse is in domiciliary care; (5) The reserve limit allowed for a blind or disabled minor child who lives with his parent or parents or is temporarily absent includes the child and the parent or parents with whom the child lives; (6) The reserve limit allowed for a blind or disabled dependent child under age 19 who is in long term care shall include only the child if his care and treatment are expected to exceed 12 months, as certified by the child's physician. (e) Countable resources for Family and Children's related cases will be determined as follows: (1) The resources of a spouse, who is not a stepparent, shall be counted in the budget unit's reserve allowance if the spouses live together or one spouse is temporarily absent in long term care and the spouse is not a member of another public assistance budget unit; (2) The resources of a client and a financially responsible parent or parents shall be counted in the budget unit's reserve limit if the parents live together or one parent is temporarily absent in long term care and the parent is not a member of another public assistance budget unit; (3) The resources of the parent or parents shall not be considered if a child under age 21 requires care and treatment in a medical institution and his physician certifies that the care and treatment are expected to exceed 12 months. (f) The homesite shall be excluded from countable resources as follows: (1) For all aged, blind or disabled cases and family and children's related cases, the homesite is the client's principal place of residence, which includes the house and in the city the lot on which the house sits and all the buildings on the lot, or in a rural area the land on which the house sits, up to one acre, and all buildings on the acre, and, for all aged, blind, or disabled cases and medically needy family and children's related cases, the homesite also includes up to twelve thousand dollars ($12,000) tax value in real property contiguous to the principal place of residence, regardless of whether the principal place of residence is owned by the client. (2) Additional value in real property contiguous to the principal place of residence shall be a countable resource. (3) The exclusion of the homesite from countable resources set forth in Subparagraphs (f)(1) and (2) of this Rule shall also be applicable for all aged, blind, or disabled cases when the client is in long term care and his spouse, minor children, or adult disabled children remain in the home or a physician has certified in writing that the client will return home within six months from the date of entry into the hospital or long term care facility. (g) For categorically needy aged, blind or disabled cases without grandfethered protection, nonhome property and personal property that is income producing shall be excluded from resources when the budget unit's equity in the property does not exceed six thousand dollars ($6,000) and the property produces a net annual return of at least six percent of the excludable equity value for each income producing activity. (h) For medically needy Families and Children cases and medically needy aged, blind or disabled cases without grandfethered protection, if the client or any member of the budget unit has ownership in a probated estate, the value of the individual's proportionate share of the countable property shall be a countable resource unless the property can be excluded as the homesite or as income producing property, as stated in Paragrp\aphs (e) and (f) of this Rule. (i) The equity in non-excluded real property shall be counted toward the reserve level of the budget unit. (j) A motor vehicle shall be determined an 603 9:9 NORTH CAROLINA REGISTER August I, 1994 PROPOSED RULES essential vehicle as follows: (1) For aged, blind or disabled individuals with grandfethered protection, if public transpjortation cannot be used because it is not available or because of his physi-cal or mental condition and the vehicle is needed to: (A) Obtain regular medical treatment, or (B) Retain employment, or (C) Go shopping if the shopping area is more than one-half mile from the client's home, or (D) Go shopping if the client is responsi-ble for shopping and is physically limited from walking one-half mile, or (E) Transport children to and from school and the school is not within reason-able walking distance; (2) For aged, blind or disabled cases with-out grandfethered protection and medi-cally needy Family and Children's related cases, a vehicle must be special-ly equipped for use by a handicapped individual, used to obtain regular medi-cal treatment, or used to retain employ-ment. (k) The value of non-excluded motor vehicles is the Current Market Value, less encumbrances. If the applicant/recipient disagrees with the assigned value, he has the right to rebut the value. (1) The current market value of a remainder interest in life estate shall be determined by apply-ing the remainder interest p)ercentage from the chart in the Medicaid Eligibility Manual to the tax value of the property. A lower current market value for remainder interest may be established by offering the interest for sale and the highest offer received, if any, is less than the value determined by application of the values chart to the tax value. (m) For all aged, blind or disabled cases, up to one thousand five hundred dollars ($1,500) may be excluded from countable resources for the client and his spouse under the burial exclusion. Apply the one thousand five hundred dollar ($1,500) burial exclusion for each individual separately. Only the following resources may be excluded and they must be excluded in the following order: (1) Irrevocable pre-need burial contracts, burial trusts, or other irrevocable ar-rangements established for burial ex-penses; (2) Face value of life insurance policies that accrue cash value when the total face value of all policies for the budget unit is one thousand five hundred dol-lars ($ 1 ,500) or less and the cash value was not counted in reserve; (3) Revocable burial contracts or trusts established for burial expenses. Any excess remains a countable resource; (4) Cash value of life insurance that has been designated for burial expenses if the cash value was considered in deter-mining countable reserve. Any cash value in excess of one thousand five hundred dollars ($1,500) remains a countable resource. {a) — For all aged, blind or di sabled coacs and medically needy Family—and — Children's — related oases, the value of trust funds established for the client or for any member of the budget unit is— a countable resource unless it is determined by the courts that the funds arc not available for the beneficiary of the trust. (e)in) For a married individual: (1) Resources available to the individual are available to his or her spouse who is a noninstitutionalized applicant or recipient and who is either living with the individual or temporarily absent from the home, irrespective of the terms of any will, deed, contract, ante-nuptial agreement, or other agreement, and irrespective of whether or not the individual actually contributed the resources to the applicant or recipient. All resources available to an applicant or recipient under these rules must be considered when determining his or her countable reserve. (2) For an institutionalized spouse as de-fined in 42 U.S.C. 1396r-5(h), avail-able resources shall be determined in accordance with 42 U.S.C. 1396r-5(c), except as specified in Paragraph (p) of this Rule. ^(o) For an institutionalized individual, the availability of resources are determined in accor-dance with 42 U.S.C. 1396r-5. Resources of the community spouse are not counted for the institu-tionalized spouse when: (1) Resources of the community spouse cannot be determined or cannot be made available to the institutionalized spouse because the community spouse cannot be located; or (2) The couple has been continuously sepa-rated for 12 months at the time the institutionalized spouse enters the insti- 9:9 NORTH CAROLINA REGISTER August 1, 1994 604 PROPOSED RULES tution. Authority G.S. 108A-54; 108A-55; 143-127. 1(d); S.L. 1983, c. 1116; 42 U.S.C. 1396r-5; 42 U.S.C. 1396a(a)(17); 42 U.S.C. 1396a(a)(51); 42 C.F.R. 435.602; 42 C.F.R. 435.711; 42 C.F.R. 435.712; 42 C.FR. 435.723; 42 C.FR. 435.734; 42 CFR. 435.821; 42 C.FR 435.822; 42 C.FR. 435.823; 42 C.FR. 435.845; 45 C.FR. 233.20; 45 C.FR. 233.51; Deficit Reduction Act of 1984 (P.L. 98-369). Section 2373; Correll v. DSS/DMA/DHR, No. 406PA91 (North Carolina Supreme Court); Schweiker v. Gray Panthers, 453 U.S. 34. 101 S. a. 2633, 69 L. Ed. 2d 460 (1981). TITLE 11 - DEPARTMENT OF INSURANCE jyiotice is hereby given in accordance with G.S. 150B-21.2 that the N.C. Medical Database Com-mission intends to amend rules cited as 1 1 NCAC 15 .0001 - .0002, .0004 - .0010, and .0012. 1 he proposed effective date of this action is November 1, 1994. 1 he public hearing will be conducted at 2:00 p.m. on August 25, 1994 at the Medical Database Commission, Conference Room, 112 Cox Avenue, Raleigh, NC 27605. MXeason for Proposed Action; lb establish mone-tary penalty guidelines for failure to comply with rules, and to clarify definitions. i^omment Procedures: Written comments may be sent to Jim Hazelrigs at 112 Cox Ave., Raleigh, N. C. 27605. Oral presentations may be made at the public hearing. Anyone having questions should call Jim Hazelrigs at (919) 733-7141. CHAPTER 15 - MEDICAL DATABASE COMMISSION .0001 SCOPE AND PURPOSE 1 1 NCAC 1 5 sets forth the requirements that health care providers defined in 11 NCAC 15 .0002 must meet in submitting to the Medical Database Commission a uniform data set describ-ing the case mix of its patients and the charges for services provided to these patients. That data will be used for grouping health care providers and patients, comparing data provider hospital charges and utilization, and disseminating information to researchers and others as indicated in G.S. 131 E-2 1 0(b) . Eventually the information base will include data on different types of health care services, including ambulatory care services and long term care services. The Commission may collect health care data from physicians, nursing homes, ambulatory surgical centers, and other types of health care providers. Statutory Authority G.S 131E-212(b). .0002 DEFINITIONS As used in this Chapter, unless specifically stated otherwise, the following words have the following meanings: (1) Act. The North Carolina Medical Database Commission Act, G.S. 131E-210 through 213. (2) Aggregate data. A grouping or categorization of the raw data such that the unit of observation is something other than an individual discharge. Reports of aggregate data with small cell counts will be edited to prevent potential identification of individual patients. (3) Ambulatory surgery billing form. Either the HCFA 1450 UB 82 or HCFA 1500 claim form required by the payor of services for ambulatory surgical services billing. (4) Ambulatory surgical case. An individual who receives one or more ambulatory surgical procedures in either a dedicated ambulatory surgical operating room or in an operating room that is used for both inpatient and ambulatory surgical procedures during a single operative encounter. (5) Ambulatory surgical facility. As defined in G.S. 131E-176(1) means a facility designed for the provision of any ambulatory surgical program. An ambulatory surgical facility serves patients who require local, regional or general anesthesia, and a period of post-operative observation. An ambulatory surgical facility may only admit patients for a period of less than 24 hours and must provide at least one designated operating room and at least one designated recovery room, have available the necessary equipment and trained personnel to handle emergencies, provide 605 9:9 NORTH CAROLINA REGISTER August 1, 1994 PROPOSED RULES adequate quality assurance and assessment by an evaluation and review committee. and maintain adequate medical records for each patient. An ambulatory surgical facility may be operated as a part of a physician or dentist's office, provided the facility is licensed under G.S. 13 IE. Article 6^ Part D, but the performance of incidental, limited ambulatory surgical procedures which do not constitute an ambulatory surgical program as defined G.S. 131E- 176 subdivision (la) and which are performed in a physician's or dentist's office does not make that office an ambulatory surgical facility . (6) Ambulatory surgical program. As defined in G.S. 131E-176(la) means a formal program for providing on a same-day basis those surgical procedures which require local, regional or general anesthesia and a period of post-operative observation to patients whose admission for more than 24 hours is determined, prior to surgery, to be medically unnecessary . (7) Ambulatory surgical services. Those surgical services provided to patients as part of an ambulatory surgical program within a licensed ambulatory surgical facility or a general acute care hospital licensed under G.S. 131E, Article 5, Part A. (8) Case mix data. Case specific discharge dafa which describe socio-demographic characteristics of the patient; total and component charges; principal and other diagnoses; treatment and services provided to the patient; as well as duration and status of the patient's stay in the hospital. Case mix data refers to the actual data elements abstracted from the HCFA 1450 UB 82 claim form as well as classifications resulting from groupings of specific data elements, e.g., DRG category. (9) Cases ; episodes of treatment of patients regardless of the physical setting. Includes but is not limited to hospital inpatient discharges, and outpatient encounters. Usually identifiable because of the creation of a claim form (such as HCFA 1450 and HCR\ 1500) which identifies the date of treatment, the diagnosis treated and the procedures performed. (10) (9) Charge data. Charge data shall consist of the HCFA 1450 UB 82 data elements and codes specified in 11 NCAC 15 .0005. (a) Hospital inpatient rep)orting will consist of HCFA 1450 UB 82 data elements and codes; and (b) Hospital ambulatory surgical programs and ambulatory surgical facilities reporting cases of ambulatory/outpatient surgery will consist of either or both the HCFA 1450 UB 82 or HCFA 1500 data elements and codes. (11) f+0) Commission. The Medical Database Commission established under G.S. I31E-21I. (12) fH^ Compilations. The arrangement of data collected by and furnished to the Commission by any corporation, association, or entity acting under agreement with the Commission for release and dissemination to the public. (13) fi5) Data Provider. The legal entity responsible for submitting data to the Commission as specified in this Chapter and for which the administrative rules currently apply. These Rules currently apply to the following: Hospitals and Ambulatory surgical facilities . (14) {\i) Dataset. The full collection of the data submitted by each data provider for a particular reporting period in the possession of the Commission or the contractor designated by the Commission to collect and process the data. (15) fi4) Executive Director. The chief operating officer of the Commission. (16) ^HCFA. The Health Care Financing Administration of the U.S. Department of Health and Human Services, or any successor agency. (IT) {\€) Health Care Provider. Any f)erson, organization, or entity that renders health care services, e.g., hospital, as defined in II NCAC 15 .0002. (18) {¥f) Hospital. Any facility licensed by the North Carolina Division of Facility Services under G.S. 131E-77 (Hospital Licensure Act) or under G.S. 122C-23 (Licensure of Facilities for the Mentally 111, the Mentally Retarded and Substance Abusers), but does not include: (a) a facility with all of its beds designated for medical type "LTC" Gong term 9:9 NORTH CAROLINA REGISTER August 1, 1994 606 PROPOSED RULES care) ; (b) a facility with the majority of its beds designated for medical type "PSY-3" (mental retardation); or (c) a fecility operated by the North Carolina Department of Corrections. (19) {W, Billing Forms. (a) Uniform billing hospital billing form. Form UB-8S/HCFA-1450 £and its variations UB 82 and UB 92}, the hospital billing form develop>ed by the National Uniform Billing Committee or its successor. (b) Ambulatory surgery billing form. Either the HCFA 1450 UB 82 or HCFA 1500 form required by the payor of services for ambulatory surgical services billing. (20) ^4^ Raw data. Patient specific records including those which have been stripped of all patient identifying information. (21) <^0) Reporting facility. Any of the hos-pitals, ambulatory surgical facilities, nursing homes, physicians, or other health care providers from which collec-tion of information is authorized in 1 1 NCAC 15 .0001 and for which adminis-trative rules are published and currently apply. Statutory Authority G.S. 131E-212(b). .0004 UNIFORM BILLING FORiM (a) All hospitals shall complete the uniform hospital billing form for every inpatient discharged after June 30, 1987, from any bed other than one designated medical type "LTC" regardless of the source of payment. For patients discharged after June 30, 1987 who were admitted prior to July 1, 1987, hospitals shall submit to the Commission either an admit-through-discharge claim or the complete set of interim claims necessary to reflect the total length of stay and charges. (b) The information submitted to the Commis-sion shall be reported only for the primary payer, including Medicare, Medicaid, other government programs, private insurance, health maintenance organizations, self-insured, private pay patients, and others. Claims for secondary payers will be considered duplicate information and should not be submitted to the Commission. (c) Unless otherwise indicated in this Chapter, completion of the uniform hospital billing form for inpatient cases shall be in accordance with the instructions and definitions in the manual devel-oped by the National Uniform Billing Committee as adopted and finalized by the North Carolina Uniform Billing Committee. A copy of the manu-al is available for reference by contacting the Executive Director at 112 Cox Avenue, Suite 208, Raleigh, North Carolina 27605. (d) All hospital ambulatory surgical programs and all ambulatory surgical fecilities shall complete either the HCFA 1450 UB 82 or the HCFA 1500 form for every ambulatory surgical patient "re-leased" from care after September 30, 1993. The choice of form will be dictated by the requirements of the payor for whom the bill is prepared for the case involved, however, the HCFA 1500 1450 form will be prepared in cases where the payor has not stipulated which billing form to use. (e) The HCFA 1450 UB 82 and the HCFA 1500 forms will be completed in accordance with the instructions and definitions issued by the Commis-sion. A copy of these instructions is available for reference by contacting the Executive Director at 112 Cox Avenue, Suite 208, Raleigh, North Carolina, 27605. Statutory Authority G.S. 131E-212(b). ,0005 DESCRIPTION OF DATA TO BE SUBMITTED (a) In accordance with all pertinent state and federal regulations on patient confidentiality, the following HCFA 1450 UB 82 data elements must be submitted to the Commission for every inpatient discharged regardless of payer: DATA ELEMENT DESCRIPTION (1) Patient Control Number Form locator 3 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (2) Bill Type Form locator 4 - As stated in the North Carolina HCFA 1450 UB 82 Manual . (3) Provider Identification: (A) Medicaid Base Provider Number Form locator 8 - The number as-signed to the provider by Medicaid or as assigned by the Commission (for batching only) . (B) Federal Tax Number Form Locator 5 ; As stated in the North Carolina HCFA 1450 Manual. (4) Zip Code of Patient Address Form locator 44 13 - Only the zip code por-tion of this field is required. Code as stated in the North Carolina HCFA 1450 UB 82 Manual. (5) Patient Birth Date Form locator 45 H 607 9:9 NORTH CAROLINA REGISTER August I, 1994 PROPOSED RULES - As stated in the North Carolina HCFA 1450 UB 82 Manual. (6) Patient Sex Form locator 4^ 15 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (7) Admission Date Form locator +5 j_7 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (8) Admission Type Form locator ^ 19 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (9) Source of Admission Form locator +8 20 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (10) Patient Status Form locator ^ 22 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (11) Discharge Date (Covers Period) (State-ment Form locator S3 6 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (12) All Revenue Codes and Associated Charges Form locators 51 and 53 42 and 47 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (13) Payer Identification Form locator #7A 50a - Classification code and specific carrier identification code for primary payer. (14) Certificate/Social Security/Health Insur-ance Claim/Identification Number Form locator €S 60a - As stated in the North Carolina HCFA 1450 UB 82 Manual. (15) Insurance Group Number Form locator 70 62a - As stated in the North Caroli-na HCFA 1450 UB 82 Manual. (16) Principal Diagnosis Form locator 77 67 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (17) Other Diagnoses ; 8 (4 others maxi mum) Form locators 78 8 1 68-75 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (18) External Cause of Injury Code (E-Code Form Locator 77 ; As stated in the North Carolina HCFA 1450 Manual/ whenever the principal diagnosis is an injury, poisoning or adverse effect. (19) {i%^ Principal Procedure and Date Form locator 84 80 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (20) ^W) Other Procedures and Dates Form locators 85 & 86 81a - e - As stated in the North Carolina HCFA 1450 UB-83 Manual. (21) ^30) Attending Physician Identification Form locator 93 82 - Only the State lioonso number of this field UPIN is required. Code as stated in the North Carolina HCFA 1450 UB 82 Manual. (22) f3I^ Other Physician Identification Form locator 93 83 - Only the State license number of thia field UPIN is required. Code as stated in the North Carolina HCFA 1450 UB 82 Manual. (b) In accordance with all pertinent State and federal laws or regulations on patient confidentiali-ty, the following HCFA 1450 UB 82 data elements must be submitted to the Commission for every ambulatory surgical patient released regardless of payor: DATA ELEMENT DESCRIPTION (1) Patient Control Number Form locator 3 - As stated in the North Carolina HCFA 1450 UB-«3 Manual. (2) (3) £A1 mi Bill Typ)e Form locator 4 - As stated in the North Carolina HCFA 1450 UB 82 Manual. Provider Identification: Medicaid Base Provider Number Form locator 8 - The number as-signed to the provider by Medicaid or as assigned by the Commission (for batching only) . Federal Tax Number Form Locator 5 ; As stated in the North Carolina HCFA 1450 Manual. (4) Zip Code of Patient Address Form locator 44 n - Only the zip code por-tion of this field is required. Code as stated in the North Carolina HCFA 1450 UB 82 Manual. (5) Patient Birth Date Form locator 43 JJ - As stated in the North Carolina HCFA 1450 UB-83 Manual. (6) Patient Sex Form locator 4^ 15 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (7) Admission DateForm locator 45 17 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (8) Admission Type Form locator 47 19 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (9) Source of Admission Form locator 48 20 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (10) Patient Status Form locator 34 22 - As 9:9 NORTH CAROLINA REGISTER August 1, 1994 608 PROPOSED RULES stated in the North Carolina HCFA 1450 UB 82 Manual. (11) Discharge Date (System Covers Period) Form locator S3 6 - As stated in the North Carolina HCFA 1450 yB-«3 Manual. (12) All Revenue Codes and Associated Charges Form locators 51 and 53 42 and 47 - As stated in the North Caroli-na HCFA 1450 UB 82 Manual. (13) Payer Identification Form locator 5^ 50a - Classification code and specific carrier identification. (14) Certificate/Social Security/Health Insur-ance Claim/Identification Number Form locator 68 60a - As stated in the North Carolina HCFA 1450 UB 82 Manual. (15) Insurance Group NumberForm locator 70 62a - As stated in the North Caroli-na HCFA 1450 UB 82 Manual. (16) Principal Diagnosis Form locator^ 67 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (17) Other Diagnoses ; 8 (4 others maxi mum) Form locators 78 8 1 68-75 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (18) External Cause of Injury Code (E-Code) Form Locator 77 ; As stated in the North Carolina HCFA 1450 Manu-al/ whenever the principal diagnosis is an injury, poisoning or adverse efl'ect. (19) fl-8) Principal Procedure and Date Form locator 84 80 - As stated in the North Carolina HCFA 1450 UB 82 Manual. (20) (W) Other Procedures Form locators S5 &-86 8ia I e - As stated in the North Carolina HCFA 1450 UB 82 Manual. (21) (30) Attending Physician Form locator 93 82 - Only the State Identification number—license UPIN is required. Code as stated regardless of payer. (22) fSi^ Other Physician Identification Form locator 93 83 - Only the State number of this field UPIN is required. Code as stated in the North Carolina HCFA 1450 UB 82 Manual. (c) In accordance with all pertinent State and federal laws or regulations on patient confidentiali-ty, the following HCFA 1500 data elements must be submitted to the Commission for every ambula-tory surgical patient released. DATA ELEMENT DESCRIPTION (1) Payer Identification Form locator 1 - as stated in the Com-mission issued ambulatory surgery data submission manual. (2) Insured's ID Number Form locator la - as stated in the Commission issued ambulatory surgery data submission manual. (3) Patient's Date of Birth Form locator 3 - as stated in the Commission issued ambulatory surgery data submission manual. (4) Sex Form locator 3 - as stated in the Commission issued ambulatory surgery data submission manual. (5) Zip code of Patient Address Form locator 5 - only the zip code is required as stated in the Commission issued ambulatory surgery data submission manual. (6) Diagnosis or Nature of Illness or Injury Form locator 21 - using the ICD-9-CM code and stated in the Commission issued ambulatory surgery data submis-sion manual. (7) Dates of Service Form locator 24A - as stated in the Commission issued ambu-latory surgery data submission manual. (8) Place of Service Form locator 24B - as stated in the Commission issued ambu-latory surgery data submission manual. (9) Type of Service Form locator 24C - as stated in the Commission issued ambu-latory surgery data submission manual. (10) Procedures, Services, Supplies Form locator 24D - as stated in the Commis-sion issuedambulatory surgery data submission manual. {4-t) Diagnosis Code Form locator 24E—as stated in the Commission issued ambu an (12) (13) (14) latory surgery data submission manual. fi3) Charges Form locator 24F - as stated in the Commission issued ambu-latory surgery data submission manual. {^ Days or Units Form locator 24G - as stated in the Commission issued ambulatory surgery data submission manual . fW) Federal Tax ID Form locator 25 - as stated in the Commission issued ambulatory surgery data submission manual. f4-^ Patient's Account No. Form loca-tor 26 - as stated in the Commission is-sued ambulatory surgery data submis-sion manual. 609 9:9 NORTH CAROLINA REGISTER August 1, 1994 PROPOSED RULES (15) f4^ Total Charge Form locator 28 - as stated in the Commission issued ambu-latory surgery data submission manual. (16) fi^ Attending Physician's WN UPIN Number Form locator H 17A - as stated in the Commission issued ambu-latory surgery data submission manual. (d) Any hospital or ambulatory surgical facility which does not have a Medicaid Base provider number shall contact the Commission for assign-ment of an identification number. This number shall be used in the Medicaid Provider Number field for all UB 82 rcoorda submitted to the Com mission for batching purposes only . Statutory Authority as. 131E-212(b). .0006 DATA SUBMISSION (a) Data Submission Requirements: (1) At a minimum, hospitals and ambulato ry surgical fhoilitioa data providers shall submit the required data within 45 calendar days following the close of the calendar quarter during which the pa-tient was discharged or died; therefore, data for the calendar quarters ending March 3 1 , June 30, September 30, and December 31 shall be submitted on or before May 15, August 14, November 14, and February 14, respectively. However, hospitals data providers may submit data more frequently during the calendar quarter in which the patient was discharged or died. (2) Upon receipt of a written request for an extension from the data provider, the Commission may, for good cause, extend the time for submitting data for a particular reporting period. (b) Format for Data Submission: (1) All hospitals and ambulatory surgical fiioilitios data providers may submit HCFA 1450 UB 82 and HCFA 1500 (ambulatory surgery only), discharge data to the Commission on one of three acceptable types of media: on paper HCFA 1450 UB 82 forms, and HCFA 1500 forms (ambulatory surgery only), on a magnetic tape, or on a personal computer (PC) diskette. Other types of media used to submit the required data, such as on-line transmission, must be approved by the Commission. (2) On and after July 1 , 1 99 1 , each hospital with 1,000 or more annual discharges (3) (4) or cases, as reported on the most cur-rent hospital licensure application, must submit the required HCFA 1450 UB 82 inpatient discharge data on one of the acceptable electronic media specified m this Rule and in the format as required by the Commission. By Ae end of six months after first reporting to the Com-mission, any data provider with 1.000 or more annual discharges or reportable cases, as reported on the most current Licensure application, will submit the required data on one of the acceptable electronic media specified in this Rule and in the format as required by the Commission. An exemption will be considered by the Commission if the hospital data provider's can demonstrate that it lacks the technical capability and computer resources to produce the required data electronically. The re-quest for exemption must be made in writing by the hospital's data provider's chief executive officer. Each hospital data provider granted an exemption must submit an annual certification signed by the hospital's data provider's chief executive officer verifying that the hospital data provider continues to meet the exemption criteria. The annual certification form received from the Commission must be returned to the Commission no later than July 1 of each year. The physical specifications of the mag-netic tape shall be any size reel, record-ed in nine track. Extended Binary Coded Decimal Interchange Code (EBCDIC) mode or ASCII, with densi-ty equal to 1600 BPI or 6250 BPI, unlabeled or with IBM standard labels. Acceptable specifications for submis-sion of data on a floppy disk shall be 5 1/4 or 3 1/2 inch IBM-PC compatible diskette. Data submitted via magnetic tape shall conform to the uniform record layout as required by the Commission. Data submitted via PC diskette shall also conform to a uniform record layout as required by the Commission. Copies of the required format may be obtained by contacting the Executive Director of the Medical Database Commission at 112 Cox Avenue, Suite 208, Raleigh, North 9:9 NORTH CAROLINA REGISTER August I, 1994 610 PROPOSED RULES Carolina, 27605. (c) Edit Criteria: (1) Data elements that are considered criti-cal fields on the HCFA 1450 UB 82 form for record editing purposes are Patient Control Number, Bill TVpe, Medicaid Provider Number Federal Tax ID, Zip Code, Date of Birth, Sex, Admission Date, Admission Type, Source of Admission, Patient Status, Statement Covers Period, Revenue Codes and Charges, Primary Payer, Principal Diagnosis, Attending Physi-cian Identification. Records containing invalid HCFA 1450 UB 82 codes or all-blank fields for any of these data elements will be designated as error records. (2) Data elements that are considered criti-cal fields on the HCFA 1500 form for record editing purposes are Payer Iden-tification Insured's I.D. Number, Med icaid Provider number Federal Tax ID. Zip Code, Date of Birth, Sex, Dates of Service, place of service, type of ser-vice, procedures defined with CPT/HCPCS codes with modifiers, principle diagnosis codes, principle and secondary surgical procedure, patient's account number, physician's PIN at-tending physician identification . Re-cords containing invalid HCFA 1500 form codes or all blank fields for any of these data elements will be designat-ed as error records. (3) The last revenue code listed must be 0W- 0001 , Total Charge, and this charge must equal the sum of charges for all other revenue codes reported. (HCFA 1450) (4) On the HCFA 1450 UB 82 form for inpatient cases, the following data elements must contain valid codes if present: Primary—Payer Specific Carrier Identification, Other Diagnoses, Principal Procedure Code and Date, Other Procedure Codes and Dates, External Cause of Injury Code. Other Physician Identification (if a procedure was performed). (5) For ambulatory surgery cases the fol-lowing data elements must contain valid codes if present: (7\) reported on HCFA 1450 UB 82 : Other Diagnoses. Other Procedure Codes and Dates. External Cause of Injury Code. Primary Payer—Specif-ic Carrier Identification, Other Diag-noses, Principal Proocduro Code and Date,—Other—Procedure—Codes—aad Dates, Identification of Surgeon per - forming the procedure. ^B) — reported on HCFA 1500: Type cov-erage and insured ID number, specific carrier—identification,—procedures, services—ef — supplies—m—CPT4—©f HCPC code, dates of service, Physi cian PIN. (6) Upon completion of the data error assessment, the Commission or the designated contractor shall promptly notify each hospital—ef — ambulatory surgical facility data provider whose records do not pass the critical edit checks. This notification shall identify the discharge records and the data items within them which do not pass the edits. Each hospital data provider receiving an error notification report shall respond within 30 calendar days of the notification by making the neces-sary changes. (7) Upon receipt of a written request for an extension from the data provider, the Commission may, for good cause, extend the time for submitting the necessary changes for a particular reporting period. (d) Data Submission Arrangements: (1) Each hospital or ambulatory surgical facility data provider or its designated agent shall submit the required UB 82 data directly to the Commission or to the designated contractor. (2) Resubmissions of data as required by the Commission or upon the initiative of a hospital or ambulatory surgical facility will be accepted for the purpos-es of adding records, amending data elements or otherwise making modifica-tions to a previous data submission. Resubmissions shall conform to the requirements of 11 NCAC 15 .0006(b). (e) Reimbursement for Data Submission: For HCFA 1450 UB 82 and HCFA 1500 discharge records generated solely for submission to the Commission due to the absence of a third party payer, hospitals or ambulatory surgical facilities shall be reimbursed 40 cents ($0.40) per dis- 611 9:9 NORTH CAROLINA REGISTER August 1, 1994 PROPOSED RULES charge, regardless of the choice of medi-um for submission. Statutory Authority as. 131E-212(b). .0007 PROVIDER VERIFICATION Data Providers shall be given an opportunity to review and verify information pertaining to them in the database as follows: (1) Within ten calendar days after aW error corrections have been made and prepara-tion of the individual hospital's data provider's dataset by the Commission is complete, each hospital data provider will be notified in writing of the opportunity to review its dataset. A summary compi-lation of the dataset, including number of discharges and total charges, will be attached to each data provider's data verification notice. Within 15 calendar days of the date of the notice, each hospi tal data provider shall return the notice to the Commission indicating that the accu-racy of the dataset summary compilation has been verified by the hospital data provider . (2) Within 15 calendar days of the date of the verification notice and summary compilation, a hospital data provider that wishes to review its dataset shall submit a written request to the Executive Direc-tor. The Commission shall provide the requested data within ten calendar days after receipt of the written request. (3) Within 30 calendar days of the Commission's release of the requested dataset, the hospital data provider shall notify the Commission in writing of those portions of the dataset which the hospital data provider believes are inaccurate. The hospital data provider shall include a written statement explaining why the identified portions are believed to be inaccurate and enclose any data which would assist in clarifying the possible inaccuracies. (4) If the Commission finds any error in a dataset, the dataset shall be corrected before the release of compilations from that dataset for public use. A notification of corrections made to a hospital's data provider's dataset shall be provided to the appropriate hospital data provider by the Commission in writing prior to public release. If the Commission finds changes to the dataset are unnecessary or unwarranted, it shall notify the appropriate hospital data provider of this conclusion in writing prior to public release, including a brief but complete explanation of its determination. The compilations from the dataset will be available to the public seven calendar days following commission acceptance of the accurate dataset. (5) The Commission may, for good cause, grant an extension of these time limits upon receipt of written request from the hospital data provider. Statutory Authority as. 131E-212(b). .0008 COMPLIANCE (a) Compliance with these regulations and the act will be determined on a quarterly basis. The Commission shall consider a hospital data provider out of compliance with these regulations and the act when any of the following conditions apply: (1) The hospital data provider knowingly ^Is to submit data in accordance with the provisions of these regulations. (2) More than three percent of the hospital's data provider's discharge records submitted during a quarter, are excluded from the database by the Commission because the records do not pass the critical edit checks as specified in 11 NCAC 15 .0006(c) and the total percentage of discharge records felling critical edits for the preceding three quarters and the submitting quarter exceeds three percent. Upon notification by the Commission, hospitals data providers will be allowed to submit the corrected records in accordance with the requirements of 11 NCAC 15 .0006. Discharge records resubmitted to correct errors will not be counted in the determination of the error rate. (3) The hospital data provider has not submitted data for all of its discharges to the Commission in accordance with the required submission deadlines in 11 NCAC 15 .0006(a). (h) Penalties ; penalties will apply for data for discharges or cases with date of service on or after 1 October 1994. The Commission staff determine which data provider meets the criteria for penalties in accordance with Subparagraph (b)(1) and (2) of this Rule and provide the calculations of the 9:9 NORTH CAROLINA REGISTER August I, 1994 612 PROPOSED RULES penalties to the Commission board members. The board members will then consider these findings and vote deciding to invoke the entire penalty, a portion thereof, or none at alL The criteria to be used in deciding what level of the eligible penalty to invoke will include but not be limited to: the historic compliance of the data provider, and mitigating circumstances that prevented the data provider from supplying the information. (1) Penalty for late submission of data will be calculated in accordance with the following formula: one hundred dollars ($100.00) Eei day for each day the information is late (regardless of the number of records) PLUS: (A) for the lateness of a whole quarter of data = one dollar ($1.00) x 1/4 x total number of last years cases as reported to the North Carolina Division of Facilities Services; or (B) for the lateness of a month of data = one dollar ($1.00) x l/ll x total number of last years cases as reported to the North Carolina Division of Facilities Services. (2) Penalty for not meeting the 3% critical error rate ; effective October l^ 1994 using previous 4 quarters of data to calculate the error rate - Minimum charge of ten dollars ($10. (X)). and would be calculated as follows: 30 cents per discharge case with a critical error based upon statistic for critical errors as calculated in the control reports generated by database. the system Statutory Authority as. 131E-212(b). .0009 DATA ACCESSIBILITY (a) In accordance with G.S. 131E-213, the data collected from data providers shall not be considered public records. (1) The raw data shall be released by the Commission only to data providers which have submitted that particular data to the Commission, and which request to see and review its dataset for purposes of verifying information in the Commission's database pertaining to that data provider. These datasets are not public records. (2) State agencies will have access only to public record information as specified in G.S. 131E-212(f). (b) Only those reports and compilations prepared by the designated contractor in accordance with G.S. 131E-213 and with the provisions in 11 NCAC 15 .0009 and .0010 are public record. These reports shall include, but not be limited to comparative information on average charges, total and ancillary charge components, utilization rates, length of stay on diagnosis specific and procedure specific categories, and number of discharges, compiled in aggregate by health care provider, by diagnosis, and by primary payer category. (1) Compilations are not available for release and dissemination and are not public records until the data provider verification process has been completed. (2) The Commission shall not release any compilation of data for special studies and analysis for a purpose other than one authorized by the act. Compilations of data shall not contain patient identifying information. Only the data which can be released under requirements of the act shall be released. (3) Nothing in the act or these regulations shall prevent a hospital data provider from receiving upon request a copy of that hospital's data provider's final edited dataset as it exists in the possession of the Commission. (c) Requests for Special Compilations. Any person, organization, govenmiental agency, or other entity may request the preparation of compilations of data collected by and furnished to the Commission in a specific manner or format not already used by the Commission. This includes requests for subsets of information already available from the Commission in compiled form. (1) All requests for compilations of data shall be made in writing to the Executive Director of the Commission. At minimum, the written request shall contain the name, address, and telephone number of the requester, a description of the requested compilation of data, a concise statement of the reason for the request, and the relationship of the requested compilation to a legitimate purpose. A "legitimate purpose" is a purpose consistent with the intent, policies, and purposes of the act. (2) The Commission shall review each 613 9:9 NORTH CAROLINA REGISTER August 1, 1994 PROPOSED RULES request for a compilation of data and determine whether to approve or deny the request. The Commission shall notify the public of requests made for compilations by listing the requester, and providing a short description of the request on its official meeting agenda. Such requests shall be approved by the Commission which shall designate the form in which the information shall be made available. The approval or denial by the Commission of requests for compilations of data shall be within the discretion of the Commission. The Commission may deny a request for a compilation of data for reasons including, but not limited to, unavailability of data, the requested compilation is already available from the Commission or another source, the requested compilation of data would endanger patient confidentiality, the Commission lacks sufficient resources to fulfill the request, or the request is not related to a legitimate purpose. (3) The Commission shall notify the requester in writing of its decision. Denial of a request shall include a brief explanation of the reason for the denial. (4) The Commission or the designated contractor in consultation with the Commission shall also determine a fee to be charged to the requesting agency or private sector organization to cover the direct and indirect costs for producing special compilations. The fee should include staff time, computer time, copying costs, and supplies. For charging purposes, each compilation will be considered an original. (5) No f)erson, organization, governmental agency, or other entity receiving data from the Commission shall redisclose or redistribute that information for a fee in the same form without prior written approval from the Commission. Statutory Authority G.S. 131E-212(b). .0010 CONFTOENTIALITY OF DATA (a) The Commission shall ensure that any contract entered into with other parties for the purposes of processing and analysis of data collected under this regulation shall contain assurances that such other parties shall also comply with the provisions of pertinent state and federal regulations on patient confidentiality. (b) The Patient Control Number (HCFA 1450 UB 82 form locator 3 ) and the Certificate/Social Security/Health Insurance Claim/Identification Number (HCFA 1450 UB 82 form locator 68) and Insured's I.D. Number (HCFA 1500 form locator 4«) and the Patient Account Number (HCFA 1500 form locator 26) shall be used only for the purpose of establishing an audit trail in the event that it is necessary to retrieve the primary source document for validation of the abstracted data. Data collected under these regulations and disclosed to other parties shall be purged of Patient Control Numbers, Certificate/Social Security/Health Insurance Claim/Identification Numbers and Dates of Birth prior to disclosure. (c) Raw data submitted to the Commission or to the designated contractor by data providers pursuant to the act shall be privileged and confidential, and shall not be disclosed in any manner. The foregoing includes, but shall not be limited to, disclosure, inspection or copying under the State's Public Record Act. However, these prohibitions shall not apply to the reports prepared for release and dissemination by the Commission. (d) For compilations released, the Commission will develop procedures to prevent small cell counts from potentially identifying an individual patient. Statutory Authority G.S. 131E-212(b). .0012 SUCCESSOR FORMS All references in this Section to claim forms, such as "HCFA 1500" and "HCFA 1450" "UB 82" , include references to their successor forms, such as "HCFA 1450" and "UB-92", that are developed pursuant to federal law under the auspices of HCFA, the National Uniform Billing Committee, or the North Carolina State Uniform Billing Committee. Statutory Authority G.S. 131E-212(b). TITLE 12 - DEPARTMEP^ OF JUSTICE I\otice is hereby given in accordance with G.S. 150B-21.2 that the N.C. Alarm Systems Licensing Board intends to amend rule cited as 12 NCAC 11 .0209. NORTH CAROLINA REGISTER August 1, 1994 614 PROPOSED RULES 1 he proposed effective date of this action is November 1, 1994. 1 he public hearing will be conducted at 2:00 p.m. on August 30, 1994 at the State Bureau of Investigation, Conference Room, 3320 Old Gamer Road, Raleigh, N.C. 27626-0500. Jxeason for Proposed Action: Clarify language in the rule to specifically exempt a sole proprietor-ships that is owned and operated by a licensee. Lyomment Procedures: Interested persons may present their views either orally or in writing at the hearing. The Record of Hearing will be open for receipt of written comments until the hearing. Written comments must be delivered to the Private Protective Services Board, 3320 Old Gamer Road, Raleigh, N. C. 27626-0500 CHAPTER 11 - N.C ALARM SYSTEMS LICENSING BOARD SECTION .0200 - PROVISIONS FOR LICENSEES .0209 COMPANY BUSINESS LICENSE (a) Any firm, association, or corporation re-quired to be licensed pursuant to G.S. 74D-2(a) shall submit an application for a corporate business license on a form provided by the Board. This application for license shall call for such informa-tion as the firm, association, or corporation name; the address of its principal ofiice within the State; any past conviction for criminal off'enses of any corporate director or officer; information concern-ing the past revocation, susjjension or denial of a business or professional license to any director or officer; a list of all directors and officers of the firm, association, or corporation; a list of all persons, firms, associations, corporations or other entities owning 10 percent or more of the outstand-ing shares of any class of stock; and the name and address of the qualifying agent. (b) In addition to the items required in Para-graph (a) of this Rule, a foreign corporation shall further qualify by filing with its application for a license, a copy of its certificate of authority to transact business in this state issued by the North Carolina Secretary of State in accordance with G.S. 55-131 and a consent to service of process and pleadings which shall be authenticated by its corporate seal and accompanied by a duly certified copy of the resolution of the board of directors authorizing the proper officer or officers to exe-cute said consent. (c) After filing a completed written application with the Board, the Board shall conduct a back-ground investigation to ascertain if the qualifying agent is in a management position. The Board shall also determine if the directors or officers have the requisite good moral character as defined in G.S. 74D-6(3). It shall be prima facie evidence of good moral character if a director or officer has not been convicted by any local. State, federal, or military court of any crime involving the use, carrying, or possession of a firearm; conviction of any crime involving the use, possession, sale, manufacture, distribution, or transportation of a controlled substance, drug, narcotic, or alcoholic beverage; conviction of a crime involving assault or an act of violence; conviction of a crime involv-ing breaking or entering, burglary, larceny, or any offense involving moral turpitude; or does not have a history of addiction to alcohol or a narcotic drug; provided that, for purposes of this Section, "conviction" means and includes the entry of a plea of guilty or no contest or a verdict rendered in open court by a judge or jury. (d) Upon satisfactory completion of the back-ground investigation, a corporate business license may be issued. This license shall be conspicuously displayed at the principle place of business within the State of North Carolina. (e) The corporate business license shall be issued only to the corporation and shall not be construed to extend to the licensing of its direc-tors, officers, or employees. (f) The issuance of the corporate business license is issued to the firm, association, or corpo-ration in addition to the license issued to the qualifying agent. Therefore, the qualifying agent for the firm, association, or corporation which has been issued the corporate business license shall be responsible for assuring compliance with G.S. 74D. (g) A sole proprietorship that is owned and operated by an individual holding a current alarm systems business license shall be exempt from this Rule. Statutory Authority G.S 74D-2(a); 74D-5. 615 9:9 NORTH CAROLINA REGISTER August I, 1994 PROPOSED RULES TITLE 15A - DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES Notice is hereby given in accordance with G.S. 150B-21.2 that the EHNR - Environmental Man-agement Commission intends to adopt rule cited as 15A NCAC 2Q .0112, with changes from the proposed text noticed in the Register, \blume 8, Issue 23, page 2319. Ihe proposed effective date of this action is October 1, 1994. Jxeasonfor Proposed Action: Based on comments received at public hearings held on March 28 and 30, 1994, revisions of the proposed rule on requir-ing a professional engineer's seal on air permit applications are being considered. The Environ-mental Management Commission seeks comments on these revisions before making its final decision. Lyommsnt Procedures: All persons interested in this matters are invited to send in written com-ments. Written comments will be accepted through September 1, 1994. Comments should be sent to and additional information concerning this matter may be obtained by contacting: Mr Thomas C. Allen Division of Environmental Management PO. Box 29535 Raleigh. North Carolina 27626-0535 (919) 733-1489 iLditor's Note: This proposed different rule does not affect the fiscal note previously submitted in accordance with 150B-21.4(b). CHAPTER 2 - ENVIROIVMENTAL MANAGEMENT SUBCHAPTER 2Q - AIR QUALITY PERMIT PROCEDURES SECTION .0100 - GENERAL PROVISIONS .0112 APPLICATIONS REQUIRING PROFESSIONAL ENGINEER SEAL (a) A professional engineer registered in North Carolina shall be required to seal technical por-tions of air permit applications consiatcnt with the practice of engineering as defined by G.S. 89 C ftfid that directly involve engineering tasks, inolud ing' (1) design, the evaluation or design of air pollution capture and control aystems; ef (2) determination of applicability and ap-propriateness, or and interpretation of cmiaaiona by calculation, such as ther modynamica, chemical reaction kinot io8 , heat balances , material balanooa, or published—cmiaaion—factors — where— a range of values are given (3) determination and interpretation of performance. of air pollution capture and control systems . (b) The requirements of Paragraph (a) of this Rule do not apply to A professional engineer is not required to seal the following: (1) any source with non-optional air pollu-tion control equipment that constitutes an integral part of the process equip-ment as originally designed and manu-factured by the equipment supplier: (2) sources that are permitted under Rule .0310 or .0509 of this Subchapter; (3) paint spray booths without air pollution capture and control systems for volatile organic compound emissions : (4) particulate emission sources with air flow rates of less than 10,000 actual cubic feet per minute; or (5) permit renewal if no modifications are included in the permit renewal applica-tion. Statutory Authority G.S. 143-215. 3(a)(1); 143- 215.108. TITLE 18 - SECRETARY OF STATE J\otice is hereby given in accordance with G.S. 150B-21.2 that the N. C. Department of the Secre-tary of State, Securities Division intends to amend rules cited as 18 NCAC 6 . 1205 - . 1206, . 1208 - . 1209, . 1302 - . 1305, . 1310, . 1313 - . 1314, . 1401 - .1402, .1405, .1407, .1409, .1412 - .1413, .1702, .1704. .1713, .1901 - .1903 and adopt .1416. Ihe proposed effective date of this action is 9:9 NORTH CAROLINA REGISTER August 1, 1994 616 PROPOSED RULES December 1, 1994. 1 he public hearing will be conducted at 10:00 a.m. on October 3, 1994 at the Securities Division Conference Room, Suite 100, 300 N. Salisbury Street, Raleigh, NC 27603. ixeason for Proposed Action: 18 NCAC 6 .1205 - .1206, .1208 -.1209, .1302 - .1305, .1310, .1313 - .1314, .1401 - .1402, .1405, .1407, .1409, .1412 -.1413, .1702, .1704, .1713, .1901 - .1903 - To generally update and clarify the administrative rules dealing with the regulation of securities in North Carolina. 18 NCAC 6 .1416 - To define what actions and occurrences a securities dealer must report to the Securities Division of the Secretary of State's office, as well as the time period in which these reports must be submitted Lyomment Procedures: Interested persons may present oral or written statements at the public hearing, or in writing prior to the hearing by mail addressed to Mr Gene Cella, Administrator, Securities Division, N. C Dept. of the Secretary of State, 300 N. Salisbury St., Raleigh, NC 27603. For copies of any information related to the hear-ing call (919) 733-3924, or write to the aforemen-tioned address. The comment period will end on October 3, 1994. CHAPTER 6 - SECURITIES DIVISION SECTION ,1200 - EXEMPTIONS .1205 LIMITED OFFERINGS PURSUANT TO G.S. 78A- 17(9) (a) Any issuer relying upon the exemption provided by G.S. 78A-17(9) in connection with an offering of a security made in reliance upon Rule 505 or Rule 506 of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended, 17 C.F.R. 230.505 (1982) and 17 C.FR. 230.506 (1982) (and as subsequently amended) shall comply with the provisions of Rules .1206, .1207 and .1208 of this Section; provided that such compliance shall not be required if the security is offered and sold only to persons who will be actively engaged, on a regular basis, in the management of the issuer's business; and provided further, that compliance with provisions of Paragraphs (a), (b), and (c) of Rule .1208 of this Section shall not be required if the security is offered to not more than five indi-viduals who reside in this State. (b) Any issuer relying upon the exemption provided by G.S. 78A-17(9) in connection with an offering of a direct portioipation program security made solely in reliance upon an exemption from registration contained in Section 4(2) or Section 3(a)(ll) of the Securities Act of 1933, as amend-ed, or made solely in reliance upon Rule 504 of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended, 17 C.FR. 230.504 (1982), (and as subsequently amended), shall comply with the following conditions and limitations: (1) No commission, discount, finder's fee or other similar remuneration or com-pensation shall be paid, directly or indirectly, to any person for soliciting any prospective purchaser of the securi-ty sold to a resident of this State unless such jjerson is either registered pursuant to G.S. 78A-36 or exempt from regis-tration thereunder or the issuer reason-ably believes that such p>erson is so registered or exempt therefrom. (2) In all sales of direct participation pro-gram securities. Real Estate Investment Trusts, and Limited Liability Compa-nies , the provisions of Rule .1313 of this Chapter regarding registered offer-ings of direct participation program securities. Real Estate Investment Trusts, and Limited Liability Compa-nies shall be applicable. (3) Any prospectus or disclosure document used in offering the securities in this state shall disclose conspicuously the legend(s) required by the provisions of Rule . 1 316(a)(2) and .1316(a)(3) of this Chapter. (4) Not less than 10 business days prior to any sale offer of the securities to a resident of this State which shall in elude but not be limited to the receipt by the issuer, or any person acting on the issuer's behalf of a signed subserip tion agreement of, or the receipt of consideration from, a purohasor, the issuer shall file with the administrator, or cause to be so filed: (A) A statement signed by the issuer and acknowledged before a notary public or other similar officer: (i) identifying the issuer (including 617 9:9 NORTH CAROLINA REGISTER August 1, 1994 PROPOSED RULES name, form of organization, address and telephone number); (ii) identifying the person(s) who will be offering and selling the securi-ties in this State and their titles (and in the case of such persons other than the issuer and its offi-cers, partners and employees, describing their relationship with the issuer in connection with the transaction and the basis of their compliance with or exemption from the requirements of G.S. 78A-36) and describing any com-missions, discounts, fees or other remuneration or compensation to be paid to such persons; fiii) — containing—a— s ummary—ef—the proposed offering including! ^ a description of the socuritioa to be sold; ^S)—the namc(8)—of all—general partners of an issuer which is a partnership and, with respect to a oorpwmtc issuer or any oorporote general partncr(s) of any i ssuer which i s a partner ship, the date and place of incorporation and the names of the — directors—and — cxocutivc officers of such oorporation(s); (ffi) — the anticipated aggregate dollar amount of the offering; ^IV) the anticipated required mini mum investment,—if any,—h^ each purchaser of the securities to be offered; fV)—a — brief—description—ef—the issuer's business and the antio ipatcd use of the proceeds of the offering; and (V}) a list of the states in which the securities arc proposed to be fv) containing—an — undertaking—te furnish to the administrator, upon written request, a copy of any written—document—©f materials used or proposed to be used in oonncction with the offer and sale of the securities. (iii) containing an undertaking that no securities offerings by the issuer have occurred in the last three years or submit infbrmation con-cerning the prior offerings. (B) A consent to service of process nam-ing the North Carolina Secretary of State as service agent using the Uni-form Consent to Service of Process (Form U-2) signed by the issuer and acknowledged before a notary public or other similar officer; and accompa-nied by a properly executed Corporate Resolution (Form U-2A), if applica-ble; (C) A non-refundable filing fee in the amount of twenty five—dollars ($25.00) one-hundnsd fif
Object Description
Description
Title | North Carolina register |
Date | 1994-08-01 |
Description | Vol. 9, issue 9 (August 1, 1994) |
Publisher | Raleigh, N.C. : Office of Administrative Hearings |
Digital Characteristics-A | 88 p.; 4.91 MB |
Digital Format | application/pdf |
Pres File Name-M | pubs_serial_ncregister19940801.pdf |
Pres Local File Path-M | \Preservation_content\StatePubs\pubs_serial_ncregister\images_master |
Full Text |
rBr/v |