North Carolina register, April 1986 - June 1998

              ^^r^mi>^l./^T-ltJ^il <^' I -JS , rfy^ fJsJi.L^
The
NORTH CAROLINA
REGISTER
IN THIS ISSUE
EXECUTIVE ORDERS
FINAL DECISION LETTERS
PROPOSED RULES
Cultural Resources
Economic and Community Development
Environment, Health, and Natural Resources
Human Resources
Public Education
State Personnel
FINAL RULES
Correction
Transportation
RECEIVED
SEP 6 1991
LAW LIBRARY
List of Rules Codified
ARRC OBJECTIONS
RULES INVALIDATED BY JUDICIAL DECISION
ISSUE DATE: SEPTEMBER 3, 1991
Volume 6 • Issue 11 • Pages 678-721
INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE
NORTH CAROLINA REGISTER
The North Carolina Register is published bi-monthly
and contains information relating to agency, executive,
legislative and judicial actions required by or affecting
Chapter 150B of the General Statutes. All proposed, ad-ministrative
rules and amendments filed under Chapter
150B 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 pro-vided
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.
Requests for subscriptions to the North Carolina
Register should be directed to the Office of Ad-ministrative
Hearings, P. O. Drawer 27447, Raleigh, N.
C. 27611-7447, Attn: Subscriptions.
ADOPTION, AMENDMENT,
RULES
AND REPEAL OF
An agency intending to adopt, amend, or repeal a rule
must first publish notice of the proposed action in the
North Carolina Register. The notice must include the
time and place of the public hearing; a statement of how
public comments may be submitted to the agency either
at the hearing or otherwise; the text of the proposed
rule or amendment; a reference to the Statutory
Authority for the action and the proposed effective date.
The Director of the Office of Administrative Hearings
has authority to publish a summary, rather than the
full text, of any amendment which is considered to be
too lengthy. In such case, the full text of the rule con-taining
the proposed amendment will be available for
public inspection at the Rules Division of the Office of
Administrative Hearings and at the office of the pro-mulgating
agency.
Unless a specific statute provides otherwise, at least
30 days must elapse following publication of the pro-posal
in the North Carolina Register before the agency
may conduct the required public hearing and take ac-tion
on the proposed adoption, amendment or repeal.
When final action is taken, the promulgating agency
must file any adopted or amended rule for approval by
the Administrative Rules Review Commission. Upon ap-proval
of ARRC, the adopted or amended rule must be
filed with the Office of Administrative Hearings. If it
differs substantially from the proposed form published
as part of the public notice, upon request by the agen-cy,
the adopted version will again be published in the
North Carolina Register.
A rule, or amended rule cannot become effective
earlier than the first day of the second calendar month
after the adoption is filed with the Office of Ad-ministrative
Hearings for publication in the NCAC.
Proposed action on rules may be withdrawn by the
promulgating agency at any time before final action is
taken by the agency.
TEMPORARY RULES
Under certain conditions of an emergency nature,
some agencies may issue temporary rules. A temporary
rule becomes effective when adopted and remains in
effect for the period specified in the rule or 180 days,
whichever is less. An agency adopting a temporary rule
must begin normal rule-making procedures on the per-manent
rule at the same time the temporary rule is
adopted.
NORTH CAROLINA ADMINISTRATIVE CODE
The North Carolma Administrative Code (NCAC) is
a compilation and index of the administrative rules of
25 state agencies and 38 occupational licensing boards.
The NCAC comprises approximately 15,000 letter size,
single spaced pages of material of which approximate-ly
35% is changed annually. Compilation and publica-tion
of the NCAC is mandated by G.S. 150B-63(b).
The Code is divided into Titles and Chapters. Each
state agency is assigned a separate title which is fur-ther
broken down by chapters. Title 21 is designated
for occupational licensing boards.
The NCAC is available in two formats.
(1) Single pages may be obtained at a minimum
cost of two dollars and 50 cents ($2.50) for 10
pages or less, plus fifteen cents ($0.15) per each
additional page.
(2) The full publication consists of 53 volumes,
totaling in excess of 15,000 pages. It is sup-plemented
monthly with replacement pages. A
one year subscription to the full publication in-cluding
supplements can be purchased for
seven hundred and fifty dollars ($750.00). In-dividual
\ olumes may also be purchased with
supplement service. Renewal subscriptions for
supplements to the initial publication available.
Requests for pages of rules or volumes of the NCAC
should be directed to the Office of Administrativf
Hearings.
NOTE
The foregoing is a generalized statement of the pro
cedures to be followed. For specific statutory language
it is suggested that Articles 2 and 5 of Chapter 150B a
the General Statutes be examined carefully.
CITATION TO THE NORTH CAROLINA
REGISTER
The North Carolina Register is cited by volume, issue
page number and date. 1:1 NCR 101-201, April 1, 198(
refers to Volume 1, Issue 1, pages 101 through 201 o
the North Carolina Register issued on April 1, 1986.
North Carolma Register. Published bi-monthly by the
Office of Administrative Hearings, P.O. Drawer 27447,
Raleigh, North Carolina 27611-7447, pursuant to
Chapter 150B of the General Statutes. Subscriptions
one hundred and five dollars ($105.00) per year
North Carolina Administrative Code. Published in
looseleaf notebooks with supplement sendee by the
Office of Administrative Hearings, P.O. Drawer 27447,
Raleigh, North Carolina 27611-7447, pursuant to
Chapter 150B of the General Satutes. Subscriptions
seven hundred and fifty dollars ($750.00). Individual
volumes available.
NORTH
CAROLINA
REGISTER
Office of Administrative Hearings
P. O. Drawer 27447
Raleigh, AC 27611-7447
(919) 733 - 2678
Julian Mann III,
Director
James R. Scarcella Sr.,
Deputy Director
Molly Masich,
Director APA Services
Staff:
Ruby Creech,
Publications Coordinator
Teresa KUpatrick,
Editorial Assistant
Jean Shirley,
Editorial Assistant
ISSUE CONTENTS
I. EXECUTrV'E ORDERS
Executive Orders 147-148 678
II. FINAL DECISION LETTERS
Voting Rights Act 681
III. PROPOSED RULES
Cultural Resources
State Library 686
Economic and Community
Development
Credit Union Di%'ision 683
Environment, Health, and
Natural Resources
Marine Fisheries 690
Parks and Recreation 693
Wildlil'e Resources
Commission 692
Human Resources
Economic Opportunity 689
Medical Assistance 688
Services for the Blind 686
Public Education
Elementary and Secondary 694
State Personnel
Office of State Personnel 696
TV. EEVAL RULES
Correction
Division of Prisons 700
Transportation
Motor Vehicles 701
List of Rules Codified 711
V. ARRC OBJECTIONS 715
VI. RULES INA ALIDATED BY
JUDICIAL DECISION 717
VII. CUMULATPVE ESDEX 719
NORTH CAROLINA REGISTER
Publication Schedule
(April 1991 - December 1992)
Issue Last Day I^st Day Earliest +
Date for for Date for Earliest
Filing Electronic PubUc Effective
Filing Hearing &
Adoption by
Agency
Date
+++*++*+ +*+++*++ ++++++++ +++++++* +++++++*
04-0 1/91 03/11/91 03/18/91 05/01/91 08/01/91
04/15/91 03/22/91 0401,91 05/15,91 08/01/91
05/01/91 04/10/91 04/17/91 05/31,91 09/01/91
05/15/91 04/24/91 05/01/91 06/14/91 09/01/91
06/03/91 05/10/91 05/17/91 07/03/91 10/01/91
06 1491 05/23,91 05-31 91 07/14 91 10,01/91
07 01,91 06/10/91 06/17/91 07/31 91 11/01/91
07/15,91 06/21/91 06'28/91 08 14/91 11/01/91
08/01/91 07/11/91 07/18/91 08/31/91 12/01/91
08/15/91 07/25/91 08/01/91 09/14,91 12/01/91
09/03/91 08/12/91 08/19/91 10/03/91 01/01/92
09/16/91 08/23/91 08/30/91 10/16/91 01/01/92
10/01/91 09/1091 09/17/91 10/31/91 02/01/92
10/15/91 09/24/91 10/01/91 11/14/91 02/01/92
11/01/91 10/11/91 10/18/91 12/01/91 03/01/92
11 '15/91 10/24/91 10/31/91 12/15/91 03/01/92
12/02/91 11/07/91 11/14/91 01/01/92 04/01/92
12/16/91 11/21/91 12/02/91 01/15/92 04/01/92
01/02/92 12/09/91 12/16/91 01/31/92 05/01/92
01/15/92 12/20 91 12 31 91 02/14/92 05/01/92
02/03/92 01/10/92 01/17 92 03/04/92 06/01/92
02/14/92 01/24/92 01/31/92 03/15/92 06/01/92
03/02/92 02/10/92 02/17/92 04/01/92 07/01/92
03/16/92 02/24/92 03/02/92 04/15/92 07/01/92
04 01,92 03/11/92 03/18/92 05/01/92 08/01/92
04/15/92 03/25/92 04/01/92 05/15/92 08/01/92
05/01/92 04/10/92 04/17/92 05/31/92 09/01/92
05/15/92 04/24/92 05 01 '92 06/14/92 09/01/92
06 01 92 05/11 92 05/18/92 07/01/92 10/01/92
06/ 1 5 92 05/25 92 0601,92 07/15/92 10/01/92
07/01/92 06/10/92 06/17/92 07/31/92 11/01/92
07/15/92 06/24/92 07/01/92 08/14/92 11/01/92
08/03/92 07/13/92 07/20/92 09/02/92 12/01/92
08/14/92 07/24/92 07/31/92 09/13/92 12/01/92
09/01/92 08/11/92 08/18/92 10/01/92 01/01/93
09/15/92 08/25/92 09/01/92 10/15/92 01/01/93
10/01/92 09/10/92 09/17/92 10/31/92 02/01/93
10/15/92 09/24/92 10 01/92 11/ 14,' 92 02/01/93
11/02/92 10/12/92 10/19/92 12/02/92 03/01/93
11/16/92 10/23.92 10/30/92 12/16,92 03/01/93
12/01/92 11/06/92 11/13/92 12/31/92 04/01/93
12/15/92 1 1/24/92 12/01/92 01/14/93 04/01/93
* The "Earliest Effective Date" is computed assuming that the public hearing
and adoption occur in the calendar month immediately following the "Issue
Date", that the agency files the rule with The Administrative Rules Review
Commission by the 20th of the same calendar month and that ARRC approves
the rule at the next calendar month meeting.
EXECUTIVE ORDERS
EXECUTIVE ORDER NUMBER 147
ESTABLISHMENT OF THE GEOGRAPHIC
INFORMATION COORDINATING COUNCIL
AND THE TRANSFER OF THE CENTER
FOR GEOGRAPHIC INFORMATION AND
ANALYSIS TO THE OFFICE OF THE
GOVERNOR
WHEREAS, geographic information is emerg-ing
as an important strategic resource for the fu-ture;
and
WHEREAS, increasingly complex decisions,
overlapping governmental responsibilities, and
limited fmancial resources demand that agencies
work together to develop and utilize geographic
information; and
WHEREAS, North Carolina has a history of
effecti\'e utilization of geographic information
and "geographic information systems" (GIS)
technology both at the state level and the local
level; and
WHEREAS, geographic information and GIS
technology are now being developed and used by
many agencies in North Carohna without a
statewide focus or framework to maximize their
usefulness; and
WHEREAS, geographic information and GIS
technology can only be fully and practically uti-lued
with a statewide focus and cooperative ef-fort;
NOW, THEREFORE, by the authority vested in
me as Governor by Art. Ill, Section 5(10) of the
North Carolina Constitution and the laws of the
State, IT IS HEREBY ORDERED:
Section I. Policy. A statewide geographic in-formation
coordination effort is hereby formal-ized
for the purpose of furthering cooperation
among State, federal, and local government
agencies; academic institutions; and the private
sector to improve the quality, access, cost effec-tiveness
and utility of North Carolina's ge-ographic
information and to promote geographic
information as a strategic resource for the State.
Section 2. Establishment of Coordinating
Council. There is hereby established with the
concurrence of the Information Technology
Commission (hereinafter ITC) the Geographic
Information Coordinating Council (hereinafter
Coordinating Council) as a means of guiding the
Center for Geographic Information and Analysis
(hereinafter CGIA) and establishing the State's
direction in the utilization of geographic infor-mation,
GIS systems, and other related technol-ogies.
The stated purposes of the Coordinating
Council are (a) strategic planning (b) resolution
of policy and technology issues (c) coordination,
direction and oversight, and (d) advising the
Governor, the legislature, and the ITC as to
needed directions, responsibilities, and funding
regarding geographic iioformation.
Section 3. Transfer of the Center for Ge-ographic
Information and /Vnalysis. The Center
for Geographic Information and Analysis shall
be transferred from the Department of Environ-ment,
Health and Natural Resources to State
Policy and Planning in the Oflice of the Gover-nor.
The transfer shall be in the same manner
as a Type I transfer as provided for in N.C.G.S.
143A-6.
Section 4. Center for Geographic Information
and Analysis. Central service functions related
to GIS coordination shall become the responsi-bility
of the Center for Geographic Information
and Ancdysis. These responsibilities are listed in
the .March 5, 1991, report adopted by the Infor-mation
fechnology Commission entitled "State-wide
Coordination of Geographic Information
Systems," pages 11-13. Typical responsibilities
include: providing GIS production and consult-ing
services; giving technical support including
assistance in planning; installing and using GIS
systems; providing a wide variety of GIS related
training services and education programs in co-ordination
with SIPS; serving as a clearing house
for the exchange of GIS related information and
services; and providing the staff support for the
GIS Coordination Council.
Section 5. Membership: The membership of
the Coordinating Council shaU consist of 12
members and shall be as follows:
1) The Secretary of the Dep;u1ment of Envi-ronment,
Health and Natural Resources;
2) The Secretary of Transportation;
3) The Secretary of Admimstration;
4) The Commissioner of Agriculture;
5) The Superintendent of PubUc Instruction;
6) The department head of an at-large GIS
user agency to be appointed by the Gov-ernor;
7) The State Budget Officer;
8) The State Planning Officer;
9) One representative elected annually from
the State Government E-'ser Committee;
10) One representative elected annually from
the Affiliated User Group Committee;
6:11 NORTH CAROLINA REGISTER September i, 1991 678
EXECUTIVE ORDERS
11) One representative from Local Govern-ment
to be appointed by the Governor;
and
12) The Director of SIPS who shall ser^e as
a non-voting member.
The Governor shall appoint a chair from among
the membership to scr\'e for a one year period.
The Director of CGIA shall provide staff sup-port
as required.
Section 6. Committees. The Coordinating
Council may establish ad hoc work groups, as
needed, and shall fonri the following standing
committees:
a) State Government GIS User Committee:
Membership shall consist of represen-tatives
from all interested state govern-ment
departments. 1 he committee shall
elect its chairman and advise the Coordi-nating
Council on issues, problems, and
opportunities relating to GIS.
b) State Mapping .'\dvisor\' Committee
(SM.AC): The pnmar,- thrust of the
S.MAC shall be to consohdate statewide
mapping requirements and to advise the
Coordinating Council on issues, prob-lems,
and opportunities rclatmg to U. S.
Geological Sur\ey (L'SGS) programs and
information. The Coordinating Council
shall select a chair of the State .Mapping
Advisory Committee (SM.AC). The
Committee shall be organized and oper-ated
in a manner acceptable to the
L'SGS's National Mapping Division.
\lembership shall not be limited. Voting
eligibility shall not include federal agen-cies,
but shall be otherwise determined by
the Coordinating Council upon recom-mendation
by the SMAC Chair. The
State Geologist shall serve as a permanent
ex officio member of the SMAC. The
purpose of the SMAC shall be to consol-idate
statewide mapping requirements into
a single annual report to the LSGS; to
infonn users of geographic information
about the status of mapping programs and
the availability of map materials from
USGS; and to gain statewide support for
financing cooperative programs with
USGS. The Committee shall also advise
the Coordinating Council on issues,
problems, and opportunities relating to
USGS programs and information.
c) AlTiliated GIS I ser Ciroup Committee:
Shall be comprised of representatives from
local go\'emments, federal government,
private industry, universities, and the
General Assembly. The committee shall
elect its chairman and advise the Coordi-nating
Council on issues, problems, and
opportunities relating to the use of GIS
systems.
Section 7. FlTccti\'e Date. This Order shall
become eflecti\'e immediately and remain in ef-fect
until Juii.' .'^O, 19Q5 or until rescinded.
Done in the Capital City of Raleigh, this the
30th day of July, 1991.
EXECL ri\ F. OROER NLNriJER 148
GO\ER\OR'S TASK FORCE ON IIEAI.TFI
OBJECTI\ ES FOR THE YEAR 2000
North Carolina is blessed with some of the fin-est
medical facilities and medical care found any-where
in the world. In spite of this, more than
forty North Carolimans die prematurely each
day, exactmg an enormous economic, social and
personal toll upon our society. Tragically, most
of these deaths are preventable by relatively sim-ple
changes in individual lifestyle behavior.
In order to provide to the citizens of our state
a way to prevent this tragic loss of death and
disability, a realistic plan needs to be developed
that communities and individual citizens may use
to improve their health status and avoid prema-ture
deaths. Tliis plan must promote the ad-vantages
of health promotion and disease
prevention.
THEREI'ORi;, by the authority vested in me
as Governor by the Constitution and laws of
North Carolina" IT IS ORDERED:
Section 1. ESTADIISHMENT
ITic Governor's Task Force on the Year 2000
Health Objectives is hereby established. The
Task Force shall consist of not more than 25
persons appointed by the Governor to ser\e at
the pleasure of the Governor. All vacancies shall
be filled by the Go\cmor. The Governor shall
dcsismate the Chairman.
Section MF.MBFRSHIP
The membership shall include representatives
from the following:
1. Department of Human Resources
2. Department of Fn\iromnent, Health, and
Natural Resources
679 6:11 [\()RTH CAROLINA REGISTER September i, 1991
EXECUTIVE ORDERS
3. Association of North Carolina Board of
Health
4. North Carolina Hospital Association
5. North Carolina Medical Society
6. North Carolina Academy of Family Phy-sician
7. North Carolina Association of Local
Health Directors
8. The University of North Carolina School
of Public Health
9. North Carolina Citizens for Business and
Industry
10. Local Education
11. North Carolina County Commissioners
Association
12. National Association for the Ad\ance-ment
of Colored People
13. North Carolina Minority Health Council
14. Governor's Council on Physical Fitness
and Health
15. North Carolina Dental Society
16. North Carolina Nurses' Association
17. Old North State Medical Society
There shall also be 8 Members-atT,arge.
Section 3. FUNCTIONS
A. The Task Force shall meet regularly at
the call of the Chairman.
B. The Task Force shall have the responsi-bility
of developing and delivering to the
Governor by September 1, 1992, a list of
health objectives for the citizens of North
Carolina designed to:
1
.
increase the span of healthy life of the
citizens of North Carolina;
2. remove health disparities among the
disadvantaged; and
3. emphasize preventive health services.
C. These objectives must:
1. be measurable;
2. include measures to benefit our disad-vantaged
populations;
3. emphasize individual and community
intervention;
4. emphasize the value of health pro-motion
and disease prevention to our
society; and
5. be obtainable by the year 2000.
Section 4. ADMINISTRATION
A. Administrative support for the Task Force
shall be provided through a grant for the
Reynolds Health Care Trust to be ad-ministered
by the Department of Envi-ronment,
Health, and Natural Resources.
Additional support shall be provided by
the Department of Environment, Health,
and Natural Resources and by the De-partment
of Human Resources.
B. .Members of the Task Force shall be reim-bursed
for necessary travel and subsistence
expenses as authorized under General
Statute 138-5 and 138-6. Funds for the
reimbursement of such expenses shall be
made available from funds authorized by
the Department of Environment, Health,
and Natural Resources.
C. It shall be the responsibility of each cabinet
department to make every reasonable ef-fort
to cooperate with the Task Force in
carrying out the provisions of this order.
Section 5, IMPLEMENTATION AND DU-RATION
This Executive Order shall become effective
immediately and wiU expire upon completion
and dehverv of the health objectives to the Gov-ernor.
It is subject to reissuance or extension at
the discretion of the Governor.
Done in Raleigh, North Carolina, this 6th day
of August, 1991.
6:11 NORTH CAROLINA REGISTER September i, 1991 6S0
VOTING RIGHTS ACT FINAL DECISION LETTERS
[G.S. / 20-30. 9H, effecth'e July 16, 1986, requires that all letters and other documents issued by the
Attorney General of the United States in which a final decision is made concerning a "change af-fecting
voting" under Section 5 of the Voting Rights Act of 1965 be published in the North Carolina
Register. /
U.S. Department of Justice
Civil Rights Division
.IRD:MAP:\l\lS:lrj
DJ 166-012-3 Votins; Section
91-1612 P.O. Box 66128
Washington, D.C. 20035-6128
July 24, 1991
Robert C. Cogswell, Jr., Esq.
City Attorney
P. b. Box 1513
Fayetteville, North Carolina 28302-1513
Dear .\Ir. Cogswell:
This refers to a delay in the 1991 municipal election for the City of FayetteviUe in Cumberland
County, North Carolina, submitted to the Attorney General pursuant to Section 5 of the Voting Rights
Act of 1965, as amended, 42 L'.S.C. 1973c. We received your submission on May 28, 1991.
The Attorney General does not interpose any objection to the specified change. However, we note
that Section 5 expressly provides that the failure of the Attorney General to object does not bar sub-sequent
litigation to enjoin the enforcement of the change. See the Procedures for the Administration
of Section 5 (28 C.F.R. 51.41).
Sincerely,
John R. Dunne
Assistant Attorney General
Civil Rights Division
By:
Gerald W. Jones
Chief Voting Section
6SI 6:11 NORTH CAROLINA REGISTER September 3, 1991
VOTING RIGHTS ACT FINAL DECISION LETTERS
U.S. Department of Justice
Civil Rights Division
JRD:LLT:JVJ:gmh
DJ 166-012-3 Voting Section
91-0524 P.O. Box 66128
Washington, D.C. 20035-61 28
August 19, 1991
Michael CroweLl, Esq.
Tharrington, Smith & Hargrove
P. O. Box 1151
Raleigh, North Carolina 27602
Dear Mr. Crowell:
This refers to a change in the method of election from five council members elected at large to four
elected from two double-member districts and one elected at large; a districting plan; and the imple-mentation
schedule therefor, for the Town of /\hoskie in Hertford 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 final response to our April 29, 1991, request for additional information on
June 18, 1991.
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 Adminis-tration
of Section 5 (28 C.F.R. 51.41).
Sincerely,
John R. Dunne
Assistant Attorney General
Civil Rights Division
By:
Gerald W. Jones
Chief, Voting Section
6:11 NORTH CAROLINA REGISTER September i, 1991 6S2
PROPOSED RULES
TITLE 4 - DEPARTMENT OF ECONOMIC
AND COMMLAITY DEVELOPMENT
Statutory Authority G.S.
54-109.21(25); 54-109.94; 54-/09.95.
54-109.5;
Nootice is hereby gr\-en in accordance with G.S.
I50B-12 that the .V. C. Dept. of Economic &
Community Development. Credit Union Division
intends to amend and repeal rule(s) cited as 4
.\CAC6C .0101, .0/03. .02/0. .0302, .0311. .040/
- .0404 and ./30/.
I he proposed effective date of this action is
January- /, /992.
1 he public hearing will be conducted at /0:00
a.m. on October 3. /99/ at ///O .\'a\a/io Drhe,
Suite 300. Raleioh. Sorth Carolina. 2'^609.
Coomment Procedures: Any interested person
may present his, her comments either in writing
t/iree days prior to or at the hearing or orally at
the hearing for a maximum of ten minutes. Any
person may request information by writing or
calling Mr. Stanley W. Brown. Jr.. Credit L nion
Division. / / /O Xm'olio Drive. Suite 300. Raleigh.
Xorth Carolina. 2^609, 9/9-S50-2929.
CHAPTKR 6 - CREDIT LMON Dl\ ISION
SL BCHAPTER 6C - CREDIT LMONS
SECTION .0100 - GENERAL INFORMATION
.0101 DEFINITIONS
WTien used in this Chapter, the following words
and phrases shall have the following meaning,
except to the extent that any such word or phrase
is specifically qualified by its context:
(20) "Corporate Credit Union" is a credit un-ion
with an institutional field of member-ship.
afi4 only local credit unions aft4
orgimii'ationc. Bf ari oociationo e4^ crodit *»-
ie«tT fway bocomo membtTS.
Statutofy Authority G.S. 54-/09./ 2.
.0103 I AXATION (REPEALED)
Statuton- Authority G.S. 54-/09./; 54-/09.2
(b)(5); 54-/09.22:'54-/09.99.
SECTION .0200 - ORGANIZATION OF CREDIT
UNIONS
.0210 OLT-OF-STATE CREDIT LNIONS
(REPEALED)
SECTION .0300 - BASIC INTERNAL CONTROLS:
BOOKKEEPING PROCEDURES AND OPERA-TION
STANDARDS ¥09. STATE-CHARTERED
CREDIT UNIONS
.0302 PROCEDURES
Ihe basic internal controls, bookkeeping pro-cedures
and operation standards for aU credit
unions are as follows:
(1) An adequate general ledger and detailed
cash journal shall be maintained as necessar>'
for the proper control of all transactions of
the Credit Union.
(2) A detailed and complete record of all cor-recting
and adjusting entries, with a full ex-planation
of each entr\', shall be maintained.
(3) For m;inual and machine accounting sys-tems,
all receipts and disbursements shall be
recorded and posted daily to cash journal
and subsidiary accounts. Systems using
EDP shall be posted no less frequently than
monthly.
(4) Deposits in the bank shall consist of an
entire day's receipts as entered in the journal
and cash record. If amounts are less than
three hundred doUars ($300.00), more than
one day's total receipts may be combined in
a single deposit provided that no funds are
held more than three banking days.
(5) Adequate security shall be provided (cash
drawer and lockbox for overnight) for stor-age
of funds.
(6) Credit union funds must be kept separate
from all other funds.
(7) Cash shall be balanced at the end of each
working day, and a record made thereof by
each teller (detailing specie, currency, checks
and other items counted as cash).
(8) A "cash over and short" account shall be
maintained in the expense ledger, with a re-cord
showing the name of each person re-sponsible
for each difierence.
(9) A pre-numbered receipt slip or other ori-ginal
record shall be made and preserved
covering each payment received.
(10) .-Ml bank accounts shall be reconciled at
least monthly and such reconciliations pre-ser\'
ed.
(11) A duplicate of itemized bank deposit slips,
or other comparable detailed item record,
sh;ill be preserved.
(12) The exact status of all the credit union's
funds, including investments and or funds
held by agents or attome\s, must be deter-minable
at all times without detailed search.
6Si 6:11 AORTH CAROLliXA REGISTER September 3, 1991
PROPOSED RULES
(13) Checks must be pre-numbered by the
printer and not signed in blank in advance
of issue. Facsimile signature plates shall be
adequately controlled.
(14) Disbursements must be supported by in-voices,
vouchers, or other explanations of
record, each clearly showing the nature or
purpose of each disbursement.
(15) Dual control must be maintained over all
negotiable investment securities.
(16) Members' accounts shall be posted cur-rently
and balanced not less frequently than
monthly and supported by EDP listing or
adding machine tapes, identified, dated, and
preserved.
(17) A trial balance of the general ledger should
be prepared within 1 5 working days from the
^ close of business of the last day of each
month and fmancial statements prepared
therefrom.
(18) Erasures and eradications for correction
of errors in records are prohibited; cor-rections
must be approved by an authorized
person.
(19) Members' passbooks shall be held in the
Credit Union office only for tcmporarv' pe-riods.
(20) A signed membership card file covering
all accounts shall be properly maintained.
(21) Payment of di\idends or interest on ac-counts
shall be accomplished by check or
by credit to the individual account. Adding
machine proof tape or other detailed record,
in support of di\idend or interest paid by
check or credited to accounts shall be pre-ser\'
ed.
(22) A cross-index card record should he
maintained for each co-maker showing the
date, name and original amount of each note
on which the individual appears as co-maker.
(23) Minutes of meetings of the Board of di-rectors
shall record in detail all of its busi-ness
transactions and be signed by the
presiding officer and the secretary. Such di-rectors
at such times as they are meeting as
a board of directors, shall require the secre-tary
of such board or some duly designated
agent, to make a matter of record in the
minutes of the meetings of such board of
directors, all letter communications from the
Division.
(24) The supervisor^' committee shall have
workpapers to support its audit report. The
reports and workpapers shall be retained and
made available for review by the state ex-aminers.
(25) A report of actions taken by the credit
committee and/or loan officers shall be pre-pared,
signed and preserved.
(26) Minutes of each annual meeting of the
members of the Credit Union shall record in
detail all business transacted.
(27) /VU books and records of the Credit Union
shall have adequate and proper protection
from fire and other hazards at all times.
Active books and records of the Credit Un-ion
should be located at the principal office
at all times.
(28) Dormant accounts shall be controUed to
prevent improper withdrawal.
(29) /Vnnual vacations of at least five consec-utive
working days (occasionally during pe-riods
when proofs of subsidiary ledgers arc
being made) shall be taken by each em-ployee
having access to cash. During the
vacation, the employees shall remain con-tinuously
absent.
(30) A record shall be maintained which wiU
at all times show the tax and insurance sta-tus
of each piece of real estate securing the
Credit Union's investment of funds in real
estate mortgage loans.
(31) All tax liabilities shall be determined and
paid in accordance with the law.
(43^ A+i- audit guida t* pro'i idcd m th^ ae-counting
mmuml fop Ae fiuponioors' com
mittoo'D tts* m estuhlif.hing minimum
standardc sshich muot be met ift porfonning
aft audit
(^5-^ A copy t4 the ronults ef the annual audit
will be forwarded te- the iVdminiotrator'o el^
6t?e within tW days ef rece ipt by the Board
©f directors.
(44^ rVt least o'l or/ two years, each mombor's
accc'unt h^ te- be verified: accounts closed
since the k»t e.xamination afe i4s» t» be
' enfied. This procedure is t» be follo>s'ed
unless the (Credit Union Administrator finds
that a credit union ha* adequate internal
control based upon recommendation ef a
CI'i\ finn te- justify a modification »f verifi
cation procedures ift keeping with sound ae-counling
practices. A report »f tfeis
'
l orification i* t» be fonvarded te- the A4-
ministrutor.
Statutory Authority G.S. 54-/09./ / (4):
34-/09./ 2; 54-/ 09./6; 54-/09./7.
.031 1 SI RETV BOND .\ND INSLR.WCE
COXF.RAGE
(b) Ever>' state chartered credit union will
maintain the minimum bond and insurance cov-erage
as required by statute. No form of surety
6: 1 1 NOR TH CAROLINA REGLS TER September 3, 1 991 6S4
PROPOSED RULES
bond shall be used except as is appro\'ed by the
Administrator. Credit Union Blanket Bond,
Standard Form No. 23 of the Surety Association
of .America, plus faithful performance rider, or
NCUA Optional Form 581 or its equivalent,
shall be considered the minimum co\erages re-quired
and are hereby the approved forms. ITie
appro\'ed bond forms in this Paragraph pro\'ide
faithful performance coverage for all emploNces
and officials. Oodit union -
"
. havL* »+n? option tvf
only providing faithful pt' rtonnance e+ tRi -. t t*H^
erage fo* tl» chief fmancial officor (trgaouror
and or managor) olectod. appointed, e* de-jig
natod W A# Board h4 diroctorLi . The fmancial
officer is the indi\idual charged with the respon-sibilities
of the financial officer as set forth in
.Article X. Section 5 and or 6. of the Credit Un-ion's
(Standard) Byla\\s. Fidelity bonds must
provide coverage for the fraud and dishonesty of
all employees, directors, otTicials, and supenisory
and credit committee members. Other forms, or
changes in the amount of bond coverage, must
be appro\ed by the .Administrator.
Statuton Authority G.S. 54-109.1 1 (5 >:
54-109.12; 54-109.44(2).
SECTION .0400 - LOANS
.0401 DFMNQLENT LO.ANS: LOAN LOSSES
(b) .Allowance for Loan Losses.
(1) Each credit union shall establish and
maintain such reser.es as may be required
h\ the .Act or by regulation, or in special
cases by the Administrator. .AH Credit
Unions having ancoto ef $500.1100 m- more,
a*. »f DL'combL'r tS4 ef ffe* prjviouci vijar.
unk'i'-
'
. othor-
'
i i
'
. ' ij appro
'
ed hy At» jVdmin
i j. traior. shall establish an .Allowance for
Loan Losses Account. aft4 follow A<?
accounting prQcoduri.' 'j w?* forth m At?
'i landbook *h4 rVccountinj Manual fof
StatL' Chartorod (Te<.lit I nic^n -.
"
ttft4 \^
addendum^ therolo. The .Allowance for
Loan Losses .Account is not an addition
to but a part of the Regular Resene as
required by statute.
(-e+ Spi.- ciLil R..' "i-Ti \' t+*f DL' HnquL'nt I oanr.
. AH-credit
uniom. hasmg aL. bt' ti. t+f It^t* than S 5 00. 000
tfeit- choooe Het- te- comply with Paragraph f^
t4~ t44-. Ruk'. ift addition k* t4+t» R(.'gulur StatutoPi
Ro'.ori O tt+e iXdmini '.trator hall r^'quiro r.uch
regular rooopi o W oupplomentod ^ a cpecial pe-noPi
L' te l*e known a-, a Spt'cial Re'. L'n e ft»f i^e-
Unqut^ nt Loanr. v. ht'n tbe Statutor> Ro '. l'Pi O '»
inadequate; t+^ covor potontial leaf* loor.OL. .
Statutory^ .Authority G.S. 54-109.12; 54-109.17;
54-109.86; 54-109.87.
.0402 CHARGE-OFF OF UNCOLLECTIBLE
LOANS
(c) Aft¥ loano »« which »& payments have boon
received fef a period ef 4-3 inonlhr.
, .Any loans
delinquent 12 months or more, unless there are
justilied extenuatmg circumstances will be
charged off in accordance with Paragraph (a) of
this Rule.
Statutory Authority G.S. 54-109.12; 54-109.17.
.0403 REAL ESTATE LO.ANS
(a) Loan Limitations. Unlocs othonvico pro
sided » A# bykiwf.
. No more than 30 percent of
the total dollar amount of shares and deposits
shall be made in fixed rate real estate loans with
a remaining maturity of more than seven years
\\ ithout the permission of the Administrator.
Statutory .Authority G.S. 54-109.12; 54-109.18;
54-109.21(25).
.0404 LINE OF CREDIT LOANS
(b) Resen,-es. .A credit union shall maintain for
a period of one month, beginning on the seventh
day of each month, a resen.e, which shall consist
of cash on hand or legal in\estments that mature
in one year or less, in an amount not less than
five percent of the aggregate unused portion of its
Une of credit loans determined as of the close of
the pre\ious month. Not more than 20 percent
of the required rescn.e shall be in direct L'nited
States Government obligations. Lhe Credit Un-ion
shall keep current records of the aggregate
unused portion of its line of credit loans and re-ser\
es, and the .Administrator may require peri-odic
or special reports based on these records.
IhiLi ro 'jOPi O requirement do e-:. fte4- apply te- tho ir.o
credit unions '
ivith assets ef $2,000,000 e* more
aft4 subject te Ae ^ percent liquidity reseri
'e fe-quirement.
Statutory Authority G.S. 54-109.12.
SECTION .1300 - RESERVES
.1301 LIQIIDITV RESERVES
(c) The liquidity base shall consist of cash, ift-
'
. estments ift ICU s. shares and deposits in the
National Credit Lnion .Administration Central
Liquidity Facility, aft4 the North Carolina
Savings Guaranty Corporation and investments
with a maturity of less than one vear as author-ized
under G.S. 54-109. S2(3)(4)f5)(q)( 10) and
(12) of the North Carolina Credit L'nion laws.
GoNcmment securities with a maturitv of more
6S5 6:11 NORTH CAROLL\.4 REGISTER September 3, 1991
PROPOSED RULES
than one year may be included provided securi-ties
are carried at the lower of cost or market and
adjusted monthly on a consistent basis. Docu-mentary
evidence must be kept on file supporting
the adjustments for a period of 18 months.
(e) The liquidity reserve can only be used to
satisfy contractual line of credit agreements, share
and deposit withdrawals. In the event the
liquidity reserve falls below the required amount
the Credit Union must immediately notify the
Administrator of Credit Unions. The Credit
Union will ha\c 60 days to replenish the liquidity
reserve, if tb*» Crijdit Union i« unablo te- replon
isl* the liquidity rcooPi 't* within th* 60 day period,
HO- now loan ';, may be mado until the liquidity
rLV .oPi 'L' i^ rL'plL'nitihL'd te- t4+e requ i red amount
(unleoi'i aft- exten '.iun ef exception i* approved by
the AdminiLitrutor).
Statutory Authority G.S. 54-109.12:
54- 1 09.86(c).
11 ILK 7 - DKPAR IMENT OF CULTURAL
RESOURCES
Nootice is hereby given in accordance with G.S.
J50B-J2 that the Cultural Resources/ State Li-brary
intends to amend rule(s) cited as 7 NCAC
2E .0202.
1 he proposed effective date of this action is
January I, 1992.
1 he public hearing will be conducted at 9:00
a.m. on October S, 1991 at the State Libraty
Building/ State Archives, Room 26, 109 E. Jones
Street, Raleigh, N.C.
Coomment Procedures: Written comments to
Mr. Howard McGinn, Director, Division of the
State Library. 109 E. Jones St., Raleigh, N.C.
27601, no later than 5:00 p.m., October 4, 1991.
CHAP! KR 2 - Dl\ ISION OF STATE LIBR.ARY
SUBCHAPTER 2E - LIBRARY DEVELOP.MENT
SERVICES
SECTION .0200 - ORGAMZAHON OF
REGIONAL LIBRARIES
.0202 BOARD OF TRLSTEES
(a) The board of trustees is the governing body
of a regional library. It is composed of not more
than \2 j_5 members. Each county must have
representation on the board in proportions de-termined
equitable by all participating counties.
Regional board members are appointed from
members of local boards where they exist.
(b) Terms of officers and members are to be
limited and staggered to assure continuity as well
as change. No individual member will be ap-pointed
to more than two consecutive terms, and
no single term shaU be longer than six years.
(c) Any trustee missing three consecutive board
meetings is considered to have resigned and wiU
be replaced.
Statutory Authority G.S. 125-2: I43B-I0.
TITLE 10 - DEPARTMENT OF HUMAN
RESOURCES
ly otice is hereby given in accordance with G.S.
I50B-I2 that the Division of Services for the Blind
intends to amend rule(s) cited as 10 NCAC 19F
,0/04, .0402. .0504: and repeal rule(s) cited as
10 NCAC I9F .0108, .0508.
J he proposed effective date of this action is
January J. 1992.
1 he public hearing will be conducted at 10:00
a.m. on October 5, 1991 at the Division of Services
for the Blind, Fisher Building, Conference Room,
309 Ashe Avenue. Raleigh. N.C. 27606.
Coomment Procedures: Any interested person
may present his; her comments either in writing
three days prior to or at the hearing or orally at
the hearing for a maximum of ten minutes. Any
person may request information by writing or
calling Mr. Herman Gruber, Designee, Division
of Services for the Blind, 309 Ashe Avenue,
Raleigh, N.C. 27606 (919) 733-9822.
CHAPTER 19 - SERVICES FOR THE BLIND
SUBCHAPTER 19F - INDEPENDENT LIVING
SERVICES
SECTION .0100 - ELIGIBILITY FOR SERVICES
.0104 BASIC ELIGIBILITY CRITERIA
(a) In addition to the requirements of 10
NCAC 35D .0300, where applicable, an individ-ual
must be determined eligible to receive services
under the Social Services Block Grant (Title XX)
on the basis of:
(-14 income maintenance status;
{¥f income eligible status;
(4) nood without regard te- income fof aW- &if-vices.
except Chore Ser'i icos aft4 Housing
aft4 Home Improvomont SePi'icoo.
6:11 NORTH CAROLINA REGISTER September 5, 1991 686
PROPOSED RULES
( 1) need, with re>;ard to income for In-Home
Aide Senices;
(2) need without regard to income lor all other
services.
(b) lor purposes of dctcrmuung and redeter-mining
eligibility for di\ision sen'ices provided
for in this Subchapter, the rules in Subchapters
10 NCAC 35D and 35E shaU apply.
(c) Indi\'iduals arc eligible for these scr\ices at
the following income levels:
(1) Adjustment services are pro\'ided without
regard to income;
(2) In- Home Aide Senices: Chore Sen'ices for
the Blind are provided to individuals
whose monthly gross family income dooo
H«4 excoud IS less than 100 percent of the
state's established income.
Statutoty Authoriiv G.S. 111-28: 143D-I57: 42
L.S.C. '1397.
.0108 FEES FOR SERVICES (REPEALED)
Statutory' Authority G.S. I43B-157; 42 U.S.C.
1395.
SECriON .0400 - GO.\LS .\M) SERVICES
.0402 SERMCES
The following senices are admini 'i tL'rL'd oxclu
Lpisx'ly provided by senices for the blind under
this Section:
(1) ChorL' SoniccVi fe t4*t* Rlind. Thi'. mi.'anr.
At^ pertommnoo »f tQ 'jk 'j incidfiitcd t«- ife«*
uctis iti^.":. t4 dully li'i ing i
iv hc'ro t4- Vr demon
'' trill
L
'd t4wt- At* indisiduul (becuu -j e »f vi -.ual
di '.iibilitio ':. »f multi di 'jubilitio 'j) » unabk' te-perlonn
i .uch tuLlci' fof him'/' oLf »ft4 '
t
'
l herc ro
ro '/.pon 'i iblc' por'^on » available fs* tl+i^ pur
po -'t^ . Ihiji fienice may W pro'. ided m con
junction \\'\\\i A<? prosi 'iion e4 training »
L'Olf help f. kill iL. rtft4 w41- b«» usailablo only
until i . uch tiniL' a^ A<? indi'i idual \^ aW^ t©
perlonn e-.-ie ntial tu 'jk 'j indjpL' ndontly: SieF-vici?
Ci may h^ provided eft » long tenn bar. if.
if di '.abilitiL";. other than blindno '.'
: . prevent
(-ht» null', ulual trom peilorming ' aich ta ii ki . .
In- Home .Aide Senices: Chore Senices for
the Blind: Personal Care Senices for the
Blind. In-Home Aide Senices are those
paraprt)tessKinal which assist the
individual and or familv with essential hc^me
management and or perscmal care tasks
and or supenision necessan' to enable the
individual and c^r family to remain and
function elTectivelv, at home as long as pos-sible.
(2) Adjustment Sen'ices for the Blind and Vis-ually
Handicapped. These are sen'ices pro-vided
m any combination as needed and
appropriate to enable bhnd and visually
handicapped individuals to attain and/or
maintain the highest level of functioning
possible, to promote their well-being, and to
prevent or reduce dependency. This is
achieved through a focused regimen of
counseling and casework assistance to indi-viduals
and their families to help individuals
choose, obtain, and use needed resources,
senices, and mechanisms of support and to
enable individuals to obtain basic education.
Within the context of integral but subordi-nate
to this essential sen'ice function, one
or more of the following sen'ice components
or resource items may be provided:
(a) Assistance with the demands of daily living
may be provided through training in
grooming skills, manipulative skiUs such
as household mechanics, personal skills,
and money identification and manage-ment,
and communication skills such as
braille, typing, and operation of reading
rriachines;
(b) The tcachinc of orientation and mobility
skills;
(c) Therapeutic experiences aimed at helping
the individual to adjust to and accept his
visual limitations through camping expe-riences,
recreational programs, adjustment
training at rehabilitation centers, and in-dividual
and group counseling sessions or
psychiatnc therapy;
(d) Transportation, when not othenvise
available, may be provided within a city
limits at the cost of bus fare, or taxi fare
if bus is not available. If outside city
limits transportation may be pro\'ided at
the current rate as established by G.S.
138-6.
(e) The following senices, items may be pro-vided:
reader sen'ices, tutorial sen'ices.
Interpreter sen'ices for the deaf blind,
braUle and large print production, low vi-sion
optical aids, travel aids and devices,
diagnostic examinations, tapes, commu-nity
sponsored recreational activities, sup-plies
and tuition to enable an individual
to attend technical institutes or commu-nity
colleges for the purpose of gaining
basic education, and equipment, such as
typewriters, reading macliines, talking cal-culators.
(3) limployment and Iraining Support Ser-vices.
These senices are provided as part
of an individual senicc plan to enable indi-
6S7 6:11 NORTH CAROLINA REGISTER September 3, 1991
PROPOSED RULES
viduals to secure paid employment or train-ing
leading to employment, including basic
education and continuing education. Also
included are transportation as needed, tui-tion,
supplies, and rental or purchase of
books when needed to assist in meeting
usual expenses of vocational training, basic
education, or continuing education in public
or private technical institutes or community
coUcges.
(4) Individual and Family y\djustment Services.
These services are designed to offer assist-ance
to individuals and their family members
to restructure and support the client's envi-ronment.
Activities include counseling to
enable the client to recognize, understand,
and cope with problems in regard to such
areas as household management, consumer
affairs, family life education, alcoholism,
drug addiction, mental retardation, emo-tional
disturbance, and school related prob-lems.
(5) Health Support Services. These services
provide help to individuals and families to
recognize health needs including those re-lated
to alcohol and drug abuse and to se-cure
needed health services available under
medicaid, (including the oarly afi4 poriodio
ocrooning. diagnosiff aft4 treatment program),
medicare, maternal and child health pro-grams
or other agency health ser\ices pro-grams
and from other public or private
agencies or providers of health ser\'ices;
counseling and planning, as appropriate,
with individuals, families, and health pro-viders
to help assure continuity of treatment
and the carrying out of health recommen-dations;
and helping individuals to secure
admission to medical institutions and other
health-related facihties as needed. Trans-portation,
when not otherwise available,
may be provided as necessary to access
needed medical and health care resources.
(6) Housing and Home Improvement Services.
These services provide assistance to individ-uals
and families in obtaining and retaining
adequate housing and basic furnishings.
Services include helping to improve
landlord-tenant relations, to identify sub-standard
housing, to secure correction of
housing code violations, to obtain or retain
ownership of own home, and to fmd and
relocate to more suitable housing. The
provision of labor and materials for minor
renovations and repairs to owner-occupied
dwellings to remedy conditions which are a
risk to personal health and safety may be
included as an optional part of this service.
Basic appliances, such as stove, refrigerator,
or heater when this is not the responsibility
of the landlord and the individual lacks these
essentials to prepare food or is without heat,
may be provided with approval of the re-gional
director.
(7) Information and Referral. This means
giving information about services provided
under the state's social services program and
other service programs, both public and pri-vate:
brief assessment to determine the most
appropriate resource to meet the stated
needs of the person requesting services; and
referral to and follow-up with those com-munity
resources which provide or make
a\ai!able such services. Outreach activities
are not included nor is soliciting recipients
for service an activity which is included
within the scope of information and referral.
(8) The foUowing services will be mandated in
all parts of the state; the responsibihty for
the provision of these services rests with the
division of services for the blind:
(a) chore sor^ioe s fef tfee blind, In-Home Aide
Services,
(b) adjustment services for the bliad and vis-ually
handicapped.
Statutoiy Authority G.S. 111-28; I43B-I0.
SECTION .0500 - DELIVERY OF SERVICES
.0504 IN-HOME AIDE SERVICES CONTRACT
Chore ceriice In-Home Aide Services: I evel I
contract is completed by the client and provider
and shows specific types of services to provide
up to one hundred hours of service per month
at the state minimum wage or prevailing county
wage.
Statutory Authority G.S. 111-28; I43B-I57.
.0508 REFERRAL FOR TRAINING IN SELF-HELP
SKILLS AND TECIINIQLES
(REPEALED)
Statutoiy Authority G.S. III-2S; 143B-I57.
'k'k'k'k-k^'k'k'k'k'ic-k-k-k'k-k'k'k
Nootice is hereby gi\-en in accordance with G.S.
ISOB- 1 2 that the Department of Human
Resources/ Division of Medical Assistance intends
to repeal rule(s) cited as 10 SCAC 50C .0201 -
.0203.
6:11 ^ORTH CAROLINA REGISTER September 3, 1991 6S<S
PROPOSED RULES
1 he proposed effective date of this action is
January 1 , 1992.
1 he public hearing will be conducted at 1:30
p.m. on October 3, 1991 at the North Carolina
Division of Medical Assistance, 1985 L'mstead
Dri\-e. Room 201. Raleigh, N.C. 27603.
K^omment Procedures: Written comments con-cerning
these repeals must be submitted by Octo-ber
3, 1991. to: Division of Medical Assistance,
1985 L'mstead Drive. Raleigh, North Carolina
2^603, ATTN.: Bill Hottel, APA Coordinator.
Oral comments may be presented at the hearing.
CHAPTER 50 - MEDICAL ASSISTANCE
SUBCHAPTER 50C - BENEFITS
SECTION .0200 - MEDICAID SERMCES USED
CARD
.0201 MEDICAID SERMCES USED CARD
(REPEALED)
.0202 ISSUANCE (REPE.\LED)
.0203 REPLACEMENT CARDS (REPEALED)
Statutory Authority G.S. 10SA-25(b).
Jyotice is hereby given in accordance with G.S.
150B-I2 that the North Carolina Department of
Human Resources, Division of Economic Oppor-tunity
intends to amend rulefs) cited as 10 NCAC
51C .0108.
1 he proposed effective date of this action is
January 1, 1992.
1 he public hearing will be conducted at 10:00
a.m. on October 3. 1991 at the Division of Eco-nomic
Opportunity, 2413 Crabtree Boulexard,
Suite 119, Raleigh, NC 27607.
(_ onunent Procedures: Comments may be sub-mitted
in writing or may be presented orally at the
public hearing. Oral presentations which exceed
three minutes are requested to have a written copy
to he filed with the hearing clerk. Further details
of the proposed ndes may be obtained by writing
or calling: Ms. Edith .4. Hubbard, Director. Di-vision
of Economic Opportunity, 2413 Crabtree
Bhd.. State 119. Raleigh, NC 27604. Phone No.
(919) 733-2633.
H/ditor's Note: This Rule has been filed as a
temporary amendment effective August 1, 1991
for a period of 180 days to expire on January 28,
1992.
CHAPTER 51 - DIVISION OF ECONOMIC
OPPORTUNITY
SUBCHAPTER 51C - COMMUNITY SERMCES
BLOCK GRANT PROGR.\M
SECTION .0100 - GENERAL PROMSIONS
.0108 ALLOCATION OF CSBG FUNDS
(a) Funds allocated to North Carolina under
the CSBG Program will be used in Federal Fiscal
Year 1989 and in each subsequent federal fiscal
year as follows:
(1) Ninety percent of the funds to make grants
to those eligible grant recipients as defmed
in Rule .0106 (a) of this Section which are
re-certified as eligible agencies each fiscal
year by the Di\ision. The amount of the
funds allocated to each eligible grant re-cipient
shall be based on the following
method of distribution:
(A) Funds shall be allocated based on the
ratio (percentage) of persons in poverty in
the county (counties) served by the eligi-ble
agency compared to the number of
persons in poverty in the total area
(counties) served by all eligible agencies.
(B) However, no eligible agency shall re-ceive
less than:
(i) An allocation of one hundred twenty
thousand dollars ($120,000), or
(li) Eighty percent of the eligible agency's
Federal Fiscal \'ear 1982 allocation,
whichever is higher.
( 2) Five percent of the funds will be used by
the Division for administration of the
CBSG program.
(3) The remaining five percent of the funds to
make grants in Federal Fiscal \'ear 1989
and in each subsequent federal fiscal year
to those limited purpose agencies as de-fmed
in Rule .0104 of this Section and
which are re-certified as eligible agencies
each fiscal year by the Division. The Di-vision
shall aOot to each eligible Limited
Purpose Agency an amount of funds
based on the percentage of the total
CSBG funds the eligible agency received
of those funds reserved for the limited
purpose agencies and the North Carolina
Commission of Indian Affairs in federal
fiscal year 1986.
6S9 6:11 \ORTH CAROLINA REGISTER September 3, 1 99
1
PROPOSED RULES
(b) Beginning with federal fiscal year 1988 and
effective for all subsequent fiscal years, eligible
agencies wiU not be allowed to carr>' forward
unearned funds at the end of a grant agreement
to the succeeding grant agreement. AU unobli-gated
funds must be returned to the Division
within 60 days after the termination of the grant
agreement.
(c) Supplemental CSBG Grants. The preced-ing
paragraphs of this Rule do not apply to the
allocation of supplemental CSBG grants to
North Carolina. Such allocations to eligible ap-phcants
for eUgiblc activities will be made by the
Division in a manner not inconsistent with fed-eral
guidelines and conditions on supplemental
appropriations. The Division has the flexibility
to determine the number of grants awarded and
the manner in which grantee(s) are selected based
upon the amount of the allocation and the intent
of the applicable legislation and regulations.
(d) .Any unexpended allotment of CSBG funds
from pre\ious years grants shall be allocated to
each ehpble CSBG grant recipient for the fol-lowing
purposes:
( 1
)
to assist in the implementation of special
statewide initiatives, and
(2) for one-time expenditures to enhance local
programs.
Ninety percent of these funds will be distnbuted
to Community Action Agencies based on the
ratio of persons in poverty in the county or
counties served by the Community Acticm
Agency compared to the number of persons in
poverty in the total area served by all eligible
Community Action Agencies. Ten percent of
these funds will be distnbuted to those 1 imited
Purpose Agencies as delined in Rule .01(14 of this
Section on an equal basis.
Authority G.S. 1 43-323(d): I43B-I0; I43B-227;
I43B-276: 42 U.S.C. 9901-12.
TITLE I5A - DEPARTMENT OF
ENA IRONMENT, HEAl TH, AND
NATURAL RESOURCES
Jyotice is hereby given in accordance with G.S.
I50B-1 2 that the A'.C. Marine Fisheries Commis-sion
intends to amend rule(s) cited as ISA NCAC
3J .0104: 3K .0/05: 3.^1 .0503 - .0504, .0507.
1 he proposed effective date of this action is
February I. 1992.
1 he public hearing will be conducted at 7:00
p.m. on the following dates and places:
November 4^ 1991
New Hanover County Courthouse
Room 302
Wilmington, N.C.
November s. J 99/
Carteret Community College
Joslyn Hall
Morehead City, N.C.
November 6, 199/
Beaufort County Courthouse
District Courtroom
Washington, N.C.
November /\ /99/
A C A quarium
Manteo, N.C.
MFC Business Session will be November 8, 199/,
at 8:30 a.m. at the Kona Kai, Hwy. /2, Avon,
N.C.
Coomment Procedures: Comments and state-ments,
both written and oral, may be presented at
the hearings. Written comments are encouraged
and may be submitted to the Marine Fisheries
Commission, PO Box 769, Morehead City, NC
2S5S7. These written and oral comments must
be received no later than 8:30 a.m., November 8,
1991.
CHAPTER 3 - MARINE FISHERIES
SUBCHAPTER 3J - NETS, POTS, DREDGES,
AND OTHER FISHING DEVICES
SECTION .0100 - NET RULES, GENERAL
.0104 TRAWL NETS
(a) It is unlawful to use trawl nets for the taking
of finfish in internal waters, except that it shall
be permissible to take or possess finfish incidental
to crab or shrimp trawling in accordance with the
following limitations:
(1)
(2)
(b)
(1)
(2)
It is unlawful to possess aboard a vessel
while using a trawl in internal waters more
than 1,000 pounds of finfish except
flounder of legal si^.e may be taken and
possessed without limit in quantity in
internal waters while engaged in crab
trawling.
The Fisheries Director may, by procla-mation,
close any area to traw^ling for
specific time periods in order to secure
compliance of this Rule.
It is unlawful to use trawl nets:
For the taking of oysters;
In /Vlbemarle Sound and its tributaries;
6; / / NOR TH CAROLINA REGIS TER September i, 1 991 690
PROPOSED RULES
(3) In that area of Shackleford Banks as de-scnbcd
m 1 5A NCAC 3R .0006.
(c) Minimum mesh sizes for shrimp and crab
trawls are presented in 15A NCAC 3L .0103 and
.0202.
(d) The Fisheries Director may, with prior
consent o}. lll£ Marine 1 ishenes Commission, bv
proclamation. spccif\ trawl net dcsim to reduce
the catch of tintish that do not meet size Umits
or are unmarketable as mdu'idual foodfish bv
reason of size.
Staiutofj Authority
113-221'; I43B-289.4.
G.S. 113-134: II3-IS2;
SI BCIIAPTER 3K - OUSTERS, CLAMS,
SCALLOPS A\D MLSSELS
SECTION .0100 - SHELLFISH, GENERAL
.0105 NON-COMMERCL\L HARVEST OF
SHELLFISH
(a) It is unlawful for indi\iduals claiming ex-emption
from the oyster, clam and scallop license
required by G.S. 113-154. by reason of non-commercial
han'est, to take more than:
(1) One bushel of oysters per person per day,
not to exceed two bushels per vessel per
day;
(2) One hundred clams per person per day,
not to exceed t\\ o hundred clams per \-es-sel
per da\ ; and
(3) One-haff bushel of scallops per person per
day, not to exceed one bushel per vessel
per day.
(b) A vessel license, as required by G.S.
1 13-152 for the use of commercial fishin? equip-ment
as defmed m 15A NC.A.C 31 .000Ub)(l) is
not required for the non-commercial hardest of
sheUfish in accordance with limits in Paragraph
(a) of this Rule.
(c) 1* i* unla^ii ful te tekt» oyntors. clams, ef
scallopo ft*f non oommcroial purpof'e s at- aftv
timj excopt:
f44 During regular opt^n st'aoonfi: aft4
f3> Oysters and clams may abe- be taken on
Sundays and scallops may ak^v be taken on Sat-urdays
and Sundays:
( 1
)
dunng regular open seasons, and
(2) in accordance with limits outlined in Par-agraph
(a) of this Rule with or without
license.
Statuton- Authority G.S. 113-134; 113-152;
113-154; 1I3-IS2: J43B-2S9.4.
SUBCHAPTER 3M - FINFISH
SECTION .0500 - OTHER FINFISH
.0503 FLOUNDER
(a) It is unlawful to possess flounder less than
13 inches in length.
(b) The Fisheries Director may, by proclama-tion:
( 1) establish fishing gear specifications for
trawls used within three nautical miles of
the beach from October 1 through April
30 in order to protect small flounder, and
close and open the season in the /Vtlantic
Ocean to the taking of tlounder with re-gard
to quota manaaement m accordance
with the \lid-.-\tlantic Fishenes .Manaae-ment
("ounal Fishery Management Plan
tor the Summer Flounder Fisher\
.
ill
It is unlawful to violate the pro\isions of any
proclamation issued under this authority.
Statutory Authority G.S.
113-221; I43B-289.4.
113-134: 113-182;
.0504 TROLT
(a) Spotted seatrout (speckled trout). It is un-lawful
to possess spotted seatrout ( ..pecldod
trout) less than 12 inches in length.
lb) W'eakfish fgrav trout). The Fisheries Di-rector
maw bv proclamation, impose anv or all
of the following restnctions on the taking of
weakiish:
( 1 ) Specify areas.
(2) Specify seasons.
(3) Specify quantity.
(4) Specify means methods.
(5) Specify size, but not greater than 12
inches.
Statutory- .Authority
143B-289.4.
G.S. 113-134; 113-182;
.0507 HOOK-AND-LINE FISHING RESTRICTED
The Fisheries Director may, by proclamation,
establish size and han'est limit restrictions for the
following species taken by hook-and-line:
(1) Blue marlin;
(2) White marlm;
(3) Saibish;
(4) Cobia;
(5) Dolplun;
(6) Bluefish:
(7) Spotted seatrout;
1^ Weakfi -. h: aft4
[S] f% Tunas;
(9) Flounder.
Statutory Authority G.S.
113-221': I43B-289J.
113-134: 113-182;
691 6: 1 1 NOR TH CAROLINA REGIS TER September 3, 1 991
PROPOSED RULES
******************
ly otice is hereby given in accordance with G.S.
I50B-12 thai the North Carolina Wildlife Re-sources
Commission intends to repeal rule(s)
cited as ISA MCAC JOB .0104; and amend
rulc(s) cited as ISA NCAC /OF .0323, .0339,
.0342.
1 he proposed effective date of this action is
January I, 1992.
1 he public hearing will be conducted at 10:00
a.m. on October 3, 1991 at Room 3S6, Archdale
Building, 512 N. Salisbury Street, Raleigh. NC
27604-1188.
(„- omment Procedures: Interested persons may
present their views either orally or in writing at the
hearing. In addition, the record of hearing will
be open for receipt of written comments from
September 19, 1991 to October IS, 1991. Such
written comments must be delivered or mailed to
the N.C. Wildlife Resources Commission, 512 N.
Salisbury Street, Raleigh. \'C 27604-1 188.
CMAPTF.R 10-\Ml.DI.II E RESOl RCF.S AND
WAIKR SAl KT^
SUBCHAPTER lOB - MIMING AND
IRAPPING
SECTION .0100 - GENERAL REGULATIONS
.0104 HUNTING AND TRAPPING IN
\ ICINITY OK FLOOD OR FIRE
(REPEALED)
Statutory Authority G.S. 113-134; 1 13-291.2.
SUBCHAPTER lOF - MOTORBOATS AND
WATER SAFETY
SECTION .0300 - LOCAL WATER SAFETY
REGUUATIONS
.0323 BURKE COUNTY
(a) Regulated ^Vreas. This Rule applies only
to the following lakes or portions of lakes which
lie within the boundaries of Burke County:
(1) Lake Hickory;
(2) lake James;
(3) Lake Rhodhiss.
(b) Speed Limit Near Ramps. No person shall
operate a vessel at greater than no-wake speed
within 50 yards of any public boat launcliing
ramp while on the regulated areas described in
Paragraph (a) of this Rule or within 50 yards of
any designated private boat launching ramp
around the Holiday Shores Subdivision on l,ake
James.
(c) Speed Limit in Mooring Areas. No person
shall operate a vessel at greater than no-wake
speed while within a marked mooring area es-tablished
with the approval of the Executive Di-rector,
or his representative, on the regulated
areas described in Paragraph (a) of this Rule.
(d) Restricted Swimming Areas. No person
operating or responsible for the operation of a
vessel shall permit it to enter any marked public
swimming area established with the approval of
the Executive Director, or his representative, on
the regulated areas described in Paragraph (a) of
this Rule including the area within 50 yards of
any designated pn\ate boat dock around the
1 lolidav Shores Subdivision on 1 ake James.
(e) Placement and Maintenance of .Markers.
The Board of Commissioners of Burke County
is designated a suitable agency for placement and
maintenance of the markers implementing this
Rule, subject to the approval of the United States
Coast Guard and the United States .'Vrmy Corps
of Engineers, if applicable. With regard to
marking the regulated areas described in Para-graph
(a) of this Rule, all of the supplementary
standards listed in Rule .0301(g) of this Section
shall apply.
Statuton- Authority G.S. 75A-3; 75A-IS.
.0339 MCDOWELL COUNTY
(a) Regulated Areas. This Rule applies to the
following waters located on Lake James in
McDowell County:
(1) that area adjacent to the shoreline of the
McDowell Wildlife Club property;
(2) that area adjacent to the shorehne of the
Marion Moose Club property;
(3) that area known as Morgan Cove;
(4) that area within 50 yards of the shoreline
at the New Maima Baptist ^'outh Camp;
(5) that area within 50 yards of the shoreline
at Burnett's Landing;
(6) the cove area adjacent to the State P:uk
swimming area;
(7) the co\'e area adjacent to the State Park
picnic area and dock;
(8) that area within 50 yards of the boat
launchmg ramp at the Marion Lake Club.
(b) Speed Limit. No person shall operate any
motorhoat or \essel at greater than no-wake
speed within any of the regulated areas described
in Paragraph (a) of this Rule.
(c) Restricted Swimming /Vreas. No person
operating or responsible for the operation of any
vessel, surfboard or waterskis shall permit the
6:11 NORTH CAROLINA REGISTER September 3, 1 991 692
PROPOSED RULES
same to enter an\' marked swimming area located
on the regulated area.
(d) Placement and Maintenance of Markers.
The Board of Commissioners of McDowell
County is designated a suitable agency for place-ment
and maintenance of the markers imple-menting
this Rule.
Siatuioty Authority G.S. 75A-3; 75A-/5.
.0342 CAT.WVHA COl NTY
(a) Regulated /Vreas. This Rule applies to the
following waters of Lake Ilickor)':
(1)
(2)
ill
the public fishine pier located at the old
Wildlife Club off^i:th Street Dnve, N\V,
City of Ilickon,-;
the shores of the Dixie Boat Club, Inc.;
that area within 50 yards of the Moore's
lem IJoat .Marina and Boathous
44th .\\enue. Circle N\V.
ise on
(b) Speed Limit. No person shall operate a
vessel at greater than no -wake speed in the waters
of the regulated areas specified in Paragraph (a)
of this Rule.
fc) Placement and NLiintenance of .Markers.
The governing board of the City of Hickop, and
the Catawba County Board of Commissioners
are designated suitable agencies for placement
and maintenance of the markers implementing
this Rule, subject to the approval of the L'nited
States Coast Guard and the L nited States .'Vrmy
Corps of Lngineers.
Statutoty Authority G.S. 75A-3; 75A-/5.
1\ otice is hereby gi\en in accordance with G.S.
I50B-I2 that the DEHXR. Dixision of Parks and
Recreation intends to amend nde(s) cited as ISA
SC.iC I2C .0306.
1 he proposed effective date of this action is
January J, J 992.
Thhe public hearing will be conducted at 10:00
a.m. on October 3, 1991 at the Ground Floor
Hearing Room, .-irchdale Building. 512 \.
Salisbwy Street, Raleigh, .\.C.
Coommcnt Procedures: A II persons interested in
this matter are imited to attend the public hearing.
Any person requiring information should contact
Jim Hallsey. Chief of Operations. Di\-ision of
Parks and Recreation. 12700 Bayleaf Church
Road, Raleigh, Sorth Carolina, 27614 (919)
846-9991.
Written comments may be submitted to the above
address prior to the public hearing. Written and
oral comments may also be submitted at the public
hearing. Sotice of an oral presentation must be
given to the above address at least three days prior
to the public hearing.
H/ditor's Xote: This Rule has been fled as a
temporary amendment effective .August 12, 1991
for a period of ISO days to expire on Februar}' 8,
'1992.
CIIAPTKR 12 - PARKS .VND RECRE.VTION
AREA RLLES
SLBCHAPTER I2C -STATE LAKES
REGULATIONS
SECTION .0300 - CONSTRUCTION .\ND USE
OF I'lERS AND OTHER STRL CTLRES ON
ST.\TE LAKES
.0306 FEES
Lhe following schedule of fees shaU be applica-ble
to all structures beginning Fobaian.
'
+t 1'^71,
August J_^
I'jQl. the payment of which shall be
prerequisite to the riglits and pri\ilegcs exercised
pursuant to these regulations and any and all
permits issued pursuant thereto. Annual fees are
due on May 1 of each year:
(1) Fach application for the construction or
placement of a new structure or the com-plete
replacement of an existing structure,
or the complete replacement of a structure
for which a permit has previously been is-sued
but which structure has been destroyed
or remoNcd by any means, shall be accom-panied
bv an application fee of twontv del-lafs
(yo'OO) sixty dollars ($60.00) which is
only refundable li the apphcation is rejected.
(2) Applications for modifications or enlarge-ment
of an existing structure for which a
vahd pennit is held by the applicant for
modification or enlargement thereof shall be
accompanied bv an application fee of twenty
doUan-. (S20.00) sixty dollars (S60.00) which
shall be refundable only if the apphcation is
rejected.
(3) Apphcation for renewal of a permit which
was otherwise \'alid but which has been re-voked
for failure to pay the annual pier re-newal
fee within the time provided within
60 days after the due date thereof shall be
accompanied by a renewal application fee
of twenty doliarf. (S20.n0). sixty dollars
(?60.00). which shall onl\- be refundable if
the apphcation is rejected.
693 6: 1 1 NOR TH CA ROLINA REGIS TER September 3, 1991
PROPOSED RULES
(4) Transfer Fee. Applications for a transfer
of a permit to the new owner of the
waterfront property or the new owner of an
interest in waterfront property giving rise to
the right of a permit under these regulations
shall be accompanied by a transfer fee of te*
doUaro ($10.00), thirty dollars ($30.00)
which shall not be refundable for any rea-son.
This fee is not subject to being pro-rated
and shall be paid in full without regard
to the time of \ ear at which the transfer oc-curred.
(5) Application for a nonconforming use per-mit
shall be accompanied by an apphcation
fee of fiftv dollar?. ($50. 00), one hundred and
fifty dollars ($150.00), which is not
refundable for any reason.
(6) /'Vnnual fees:
(a) private structures:
(i) piers not more than 50 feet in length —
6w dollars ($5.00): fifteen dollars
($15.00):
(ii) piers more than 50 feet in length but less
than 101 feet in length - kn* dollars
fSWrOa^ thirty dollars ($30.00);
(iii) piers more than 100 feet in length but
less than 151 feet in length -- lift con ^^^
laf» ($15.00): fortv-tive dollars ($45.00):
(iv) piers more than 15U feet in length —
twenty doUaro ($30.00); sixty dollars
($60.00);
(v) boat ramps, boat mooring buoy -- five
doUars ($5.00); fifteen doUars ($15.00);
(b) commercial structures:
(i) piers less than 225 feet in length —
t^ii ontv fivo dollars ($35.00); seventv-five
doUars ($75.00);
(ii) all piers more than 225 feet in length --
fifty dollars ($50.00); one hundred and
fifty dollars ($150.00):
(iii) boat ramps, boat mooring buoys --
t>'i entv fivo dollars ($35.00); seventy-five
dollars ($75.00);
(c) public structures -- tea- dollars ($10.00).
thirty dollars ($30.00).
Statuiory- Aulhorily G.S. 1 13-35.
TH LE 16 DKPARTMEM OF PLHFIC
FDLC.VFION
lyotice is hereby given in accordance with G.S.
I50R-I2 that the State Board of Education in-tends
to amend rule(s) cited as 16 NCAC 6D
.0102: and adopt rule{s) cited as 16 NCAC 6E
.0301 - .0303.
1 he proposed effective date of this action is
February 1, 1992.
1 he public hearing will be conducted at 10:00
a.m. on October 4, 1991 at the State Board Room,
3rd Floor, Education Bldg.. 1 16 West Edenton
Street, Raleigh, .\C 27603-17/2.
Oomment Procedures: Interested persons may
submit viev.'s and comments in writing either prior
to or at the hearing or orally at the hearing.
LLditor's Xote: These Rules have been filed as
temporary ndes effccti\-e .-iugivit 12, 1991 for a
period of ISO days to expire on Febniaty I, 1992.
CH.M'IKR 6 - ELKMENTARY A^D
SECONDARY EDLC.UION
SI BCMAPTER 6D - INSTRLCTION
SECTION .0100 - CLRRICLLLM
.0102 BASIC EDLCVTION PROGRAM
(a) Each FEA shall implement the BEP as de-veloped
by the department, to the extent that
state funds are made available to it. This Rule
covers the curricular component of the BEP.
(b) The standard course of study includes, at
least, a program of studies in the following areas:
(1) arts education;
(2) communication skills;
(3) guidance;
(4) healthful living;
(5) librar>'/media skills;
(6) mathematics;
(7) science;
(8) second language studies;
(9) social studies; and
(10) vocational education.
fe) fe discharging their duly te- provido a courso
ef training aft4 instruction m Ae opc'ralion ef
motor ' chicles fe» s*?4- forth vet Ci.S. 1 15C 316. two
ef more FEAs may jointly operat e such a pro
gram undor a vvrittL'n agrL'omont bL'twoon e*
among Ae FFjXs. Ihose FEi\s shall inform A«
SBF] »f which 1 I'j\ has assumed udministrati'ie
responsibility fof t+n* program. Fv e n.
" program
niust meet t+te following critona:
f4^ 44ie program i* free ef charge te eligible
persons.
(4^ Enrollees must obtain either a temporary'
learner's pennit Bf a riM ilricted instruction
pennit before tl^ey begin beliind the ' ' heel
instruction.
(4^ Classroom instruction consists »f at- least ^ clock hours, i» accordance witfe a 6tH^
6:11 SORTH C.iROHNA REGISTER September i, 1991 694
PROPOSED RULES
nculum guidt-' isiiuod t*y (+» dopurtmont.
Each student muot comploto at- loast 4
hours ef bohind the whool instruction.
{A) LI As must make those programs fea-sonably
a'l ailublt' &» a year round basis te-aii
L' ligiblc per'.ons.
(44 I HAs may »«+ provide classroom m-structi(^
n te le^ than M students. Class
!*^ limitations apply te classroom
in"truction. Lb As Hwy ft€4 provide m-struclion
*» (4+e eaf t» k^w than tvn* »«*
more than fo«f titudents.
(4f LI' As may provide »» more than t-v.^
hours e+' in 'Uruction fvf 4ay-T except that-they
may a44 t+ftt» hour t4" in car uV'tmc
rTTTTT rrr l tt t t i i v t u. i • rrr l ni..','i * '^.'iii iii 'iililih.'ii
» i*fte dr+y^ t*f H«+ hourv t4 m car ift-struction
ever.
" other drty ti* t-wo hours »f
daily classroom instruction.
f?-t L I ;\s fftay- organij'e e.xtended school day
aft4 Saturday programs ft&t- to exceed Vwe
hours pef extended school tk+y afhi si*
hours pef Saturday fo* each teacher.
f^ LEAs shall issue te students who satis
factorily complete t+» prescribed course a
certificate »« a tomi supplied by ti+e de-partment.
(-Of Dri'i er education instructors must possess
a vithd North Carolina driver's licence aftd
mu-. t have a driving record acceptable te-t-
he I 1 j\ hT 'tructors mu'. t hold a gradu
ate ef class A dnver education certificate.
Statutory: Authority G.S. I I5C-12(9 )c.; J/5C-8J.
SLBCH.\PTER 6E - STL DENTS
SECTION .0300 - DRIVER TRAINING
.0301 DRI\ER TRAINING
(a) In discharging their dut\- to provide a course
of training and instruction in the operation of
motor vehicles as set forth in G.S. 115C-216, lo-cal
boards of education shall pro\'ide a program
which meets the following standards and re-quirements:
(1) EnroLlment in the program will be limited
to students mectina the criteria established
by G.S. 20-88. 1:
(2j The program will be free of charge to el-igible
students;
(3) EnroUees must obtain either a temporar)'
learner's permit or a restricted instruction
permit before they begin behind-the-wheel
instruction;
(4) Classroom instruction will consist of at
least 30 clock hours of instruction in the
topics previously listed in the Healthful
Living Section of the Teacher Handbook.
Upon successful completion of a Depart-ment
pretest, students may take and pass
a proficiency examination developed or
designated by the Department of Pubbc
Instruction to waive the classroom in-struction.
Each student must complete a
minimum of six hours of behind-the-wheel
instruction;
(5) The program wiU be reasonably available
on a year-round basis to all eUgible per-sons;
(6) The local board of education will deter-mine
class size restrictions, but may not
allow instruction in the car to less than
two nor more than four students;
(7) The local board of education will deter-mine
the amount of instruction per day
for classroom or in-car instruction or a
combination of both;
(8) The local board of education will issue a
certificate to students who satisfactorily
complete the prescribed course;
(9) Driver education instructors must possess
a \alid North Carolina driver's license and
must have a driving record acceptable to
the local board of education. In addition,
instructors hired for driver education shall
either:
(A) hold a driver education certificate issued
by the SBE; or
(B) have non-certified status according to
minimum standards established bv Rule
.0302 of this Section.
(10) Except as previously allowed by the SBE,
the program shall not be provided during
the regular instructional day.
(b) Two or more local boards of education may
jointly operate a program under a written agree-ment
meeting the requirements of G.S. 160A-460
et seq. The agreement shall provide for one local
board of education to assume administrati\e re-sponsibility
for the program.
Statutory Authority G.S. 20-88.1: II5C-216.
.0302 NON-CERTIFIED INSTRLCTOR STATES
I o qualify for non-certified instructor status, a
person must, as a minimum:
( 1 ) have graduated from high school or hold a
high school cqui\'alency certificate;
(2| be of good moral character;
(3) not have had convictions of moving vio-lations
totalling seven or more points in the
three years preceding the date of application:
(4) ha\e at least four years' experience as a li-censed
operator of a motor vehicle;
695 6:11 yORTH CAROLIXA REGISTER September 3, 1991
PROPOSED RULES
(5) not have had a revocation or suspension
of his or her driver's license in the four years
immediately preceding the date of apphca-tion;
and
(6) have completed the licensed instructor
course offered through the community col-lege
system and approved by the Depart-ment
and the Division of Motor Vehicles.
Statutory Authority G.S. 20-S8.I: II5C-2I6.
.0303 DRIVER EDLCATION CONTRACTS
(a) Local boards of education may enter into
contracts with public or private entities or indi-viduals
to provide a program of dri\'er education
for students.
(b) Contracts shall be awarded on a compet-itive
basis through requests for proposals to
contract. Local boards of education shall estab-lish
the process for sohciting proposals, the
number of proposals required, and the time and
place for receiving and opening proposals. In
addition, local boards of education shall deter-mine
whether bid bonds or performance bonds
shall be required. Decisions to award contracts
shall be based on quality, safety, costs and such
other reasonable factors as local boards of edu-cation
may establish.
(c) A contract may not be awarded to an entity
not hcenscd by the Division of .Motor Vehicles
as a commercial driving school pursuant to G.S.
20-320, et. seq. A contract may be awarded to
an individual not hcenscd as a commercial driv-ing
school by the Division of Motor Vehicles if
he or she is certified by the SBE in driver educa-tion
or hold non-certified instructor status.
(d) AH contracts shall specifically require the
contractor to adhere to the requirements of these
Rules, 16 NCAC 6E .0301 - .0303. In addition,
all contracts shall prescribe:
(1) the term of the contract, which may not
exceed one year;
(2) the procedure for renewal of the term of
the contract, if any, except that a contract
may not be renewed for more than two
successive one-year terms;
(3) the grounds for termination of the con-tract,
including automatic termination in
the event of revocation of the hcense re-quired
by G.S. 20-320, et. seq.;
(4) whether school facihties or vehicles are to
be leased or used by the contractor and,
if so, the terms and conditions or the
lease;
(5) whether the contractor wiU provide trans-portation
home for students;
(6) the types of vehicles and equipment to be
provided by the contractor, if any; and
(7) such other terms and conditions, including
the purchase of insurance by the contrac-tor,
as the local board of education may
determine to be reasonable and appropri-ate.
Statutory Authority G.S. 20-SS.I; II5C-2I6.
TITLE 25 - OFFICE OF STATE
PERSOVSEL
J\ otice is hereby given in accordance with G.S.
150R-I2 that the Office of State Personnel intends
to adopt nde(s) cited as 25 NCAC ID .2105 -
.2/08; It .0301 - .0307; and repeal rule(s) cited
as 25 NCAC ID .2101 - .2104; IL .0201 - .0203.
J he proposed effective date of this action is
January I, 1992.
1 he public hearing will be conducted at 9:00
a.m. on October 3, 1991 at the Personnel Devel-opment
Center, 101 W. Peace Street, Raleigh,
N.C.
(^ omment Procedures: Interested persons may
present statements either orally or in writing at the
Public Hearing or in writing prior to the hearing
by mail addres.^ed to Drake Maynard, Office of
Stale Personnel, 1 16 W. Jones Street, Raleigh.
N.C. 27603.
CHAPTER 1 - OFFICE OF STATE PERSONNEL
SUBCHAPTER ID - COMPENSATION
SECTION .2100 -SPECIAL SALARY
ADJUSTMENTS
.2101 DEFINITION AND POLICY
(REPEALED)
.2102 APPLICABILITY (REPEALED)
.2103 JUSTIFICATION (REPEALED)
.2104 RESPONSIBILITY OF THE STATE
PERSONNEL DIRECIOR (REPEALED)
Statutory Authority G.S. 126-4.
.2105 INTRODUCTION
The policy is not intended to resolve all re-tention
problems. Funds are available only from
limited salary reserves of an agency or program
and these funds must be managed to sen'e a va-riety
of program necessities. 1 herefore, the im-plementation
of special salary adjustments is
limited to the most critical retention issues.
Statutory .iuthority G.S. 126-4.
6:11 NORTH CAROLINA REGISTER September 3, 1991 696
PROPOSED RULES
.2106 PURPOSE
The purpose of retention salar\" adjustments is
to provide a last resort means to maintain em-ployment
of a key employee who has a similar
job offer outside the go\emment structure. It is
not a purpose of the rules in this Section to re-duce
the employee turnover ratio of the employer
in any appreciable sense; the purpose of the rules
in this Section is to retain key employees. Key
employees may exist at any hierarcliical level in
the organization and may represent most occu-pational
families. They topically occupy one of
a kind jobs or jobs that are documented as ex-tremely
hard to fill.
Statuior\- Auihoriiy G.S. 126-4.
.2107 POLICY
(a) Special Salary Adjustments Retention are
within grade pay increases not covered by other
pay administration policies that may be necessary
in cases of key employee retention problems re-lated
to critical and unusual labor market condi-tions.
(b) Special salary adjustments are not permis-sible
where the intent or result would \iolate or
circum\ent the pro\isions of other pay adminis-tration
policies or any pro\ision of law in effect
at the time, .\gency management and university
management are responsible for maintaining
internal equity among their employees and for
assuring that special salary adjustments do not
create other inequities.
(c) Recommended adjustments under this Rule
are subject to the availability of salary reserve
funds and are subject to approval of the State
Personnel Director and the Director of State
Budget and Management.
(dj Justification, addressing the criteria listed in
this Section must accompany requests for special
salary adjustments, includmg specific outside sal-ary
offers.
Statutoiy Authoritv G.S. 126-4.
(4) The position duties are key to agency or
program mission accomplishment. The
knowledge, skills and abilities required of an
incumbent are clearly identified as difficult
to recruit, or the occupational group is ac-knowledged
by the Office of State Personnel
as having a critical labor market shortage.
(5) The agency must confirm that the use of
established personnel policies actions are
not feasible alternatives to a special salary
adjustment (promotion, position reallo-cation,
salar.^ range revision, performance
increase).
(6) The agency must confirm that other man-agement
a]temati\-cs (realignment of duties;
allocation of additional personnel, equip-ment,
or other resources; commitment to
personal development needs or future job
opportunity; or other actions meeting mu-tually
perceived needs that are not currently
a\ailable, but are perceived by the employee
as being better satisfied by the external job
offer) are not feasible.
(7) The employee for whom the special salar>'
adjustment is proposed must have an above
satisfactory performance level.
Statutory .-iuthonty G.S. 126-4.
SLBCHAF'TER IL - AKHRM.\TI\ E ACTION
SECTION .0200 - ACQUIRED IMMUNE
DEFICIENCY S^>,DROME (AIDS) IN THE
^^ORKPLACE
.0201 EDUCATION .\ND TRAINING
(REPEALED)
.0202 BASIC EDUC.VriON AND TRAINING
COMPONENT (REPEALED)
.0203 SPECIALIZED EDUC.\TION .\ND
TRAINING COMPONENT (REPEALED)
Statutory .Authority G.S. 126-4.
SECTION .0300 - EQUAL EMPLOYMENT
OPPORTUNITY INSTITUTE
.2108 CRITERIA
Conditions to be met pnor to requesting a re-tention
increase are as follows:
(1) There is a bona fide written job offer from
an employer outside the government struc-ture
which provides greater compensation
without increased responsibility.
(2) There is no current employee with sub-stantially
equal qualifications for promotion
to the potential vacancy.
(3) Serious salary inequities would not be cre-ated
by a special salary adjustment.
.0301 PURPOSE
Ihe Equal I'mployment Opportunit\ Institute
(1 EOI) is intended to provide state go\emment
executives, managers and super%'isors with prac-tical
training that will assist them in becoming
more effccti\e managers and supervisors of an
increasingly diverse workforce. The EPOI is in-tended
to increase understanding among manag-ers
and supervisors of their roles and
responsibilities in managing employees from dii-ferent
backgrounds and cultures, and the corre-sponding
laws, policies, and employment
69: 6:11 \ORTH CAROLINA REGISTER September 3, 1 99
1
PROPOSED RULES
practices and techniques complementing this
purpose.
Statutory Authority G.S. 126-16. 1.
.0302 EEO INSTITLiTE: PARTICIPATION
Supcnisors and managers hired, promoted or
appointed on or after July 1, 1991 shall partic-ipate
in the EEO I. Supervisors and managers
appointed on or before July 1, 1991 are encour-aged
to participate in the EEOI. Agencies, de-partments
and universities shall not be
authorized to conduct or contract for substitute
training to replace EEOI. EEOI training is de-signed
to:
(1) Address and discuss the histor>' and evolu-tion
of Equal Employment Opportunity
concepts and principles.
(2) Assist managers and super\'isors in incor-porating
their Equal Employment Opportu-nity
responsibilities with other management
responsibihties.
(3) Expose managers and supervisors to
workplace equity and fairness issues.
(4) Review and discuss accepted management
practices for valuing and managing di\ersity
in the workplace.
(5) Pro\ide understanding of how diversity can
increase productivity and efficiency.
(6) Empower managers and supervisors to re-main
adaptable and flexible to meet the
challenges of an ever changing and more di-verse
workforce.
Statutory Authority G.S. 126-16. 1
.
.0303 responsibilhiks: agencies
(a) It is the responsibility of the head of each
state agency and department, and university
chancellor to enroll each supervisor or manager
appointed on or after July 1, 1991 in the EEOI.
The enrolhnent shall be within one year of his
appointment.
(b) Each agency, department or university
(hereafter named Agency) shall be responsible for
providing its prorata share of the cost for supplies
and resource materials.
(c) Agencies shall be responsible for verifying
candidate eligibility reports.
(d) Agencies should enroll incumbent managers
and supervisors to participate in the EEOI when
space is available.
(e) Agencies should incorporate in their new
employee orientation program a module of in-struction
designed to familiarize new employees
with the agency's commitment to equal employ-ment
opportunity.
Statutory Authority G.S. 126-16. 1.
.0304 RESPONSIBILITIES: M.ANAGERS
AND SLPERVISORS
(a) AU managers and supervisors shall, on an
on going basis, assure that their management
practices are fair and that the work environment
enhances equal employment opportunity.
(b) Managers and supervisors hired on or after
July 1, 1991 shall attend and complete the EEOI
in the prescribed time frame.
Statutory Authority G.S. 1 26- 16.1.
.0.^05 RESPONSIBII ITIES: OFFICE OF
ST.\TE PERSONNEL
(a) All EEOI training shall be conducted by the
Equal Opportunity Services (EOS) Division of
the Office of State Personnel (OSP).
(b) The Oftice of State Personnel, through the
EOS Division shall fuUy administer the EEOI
Program.
(c) The Office of State Personnel shall report
semi-annually, through the State Personnel
Commission, to the Joint Legislative Commis-sion
on Governmental Operations beginning
Januarv- 1, 1992.
Statutory Authority G.S. 126-16. 1.
.0306 ADMINISTR.XTION: DEFINITIONS
(a) "Super\'isory positions" are defmed as po-sitions
in which the majority of the work per-formed
is directing the work of other positions.
These employees have the authority to assign
work and to evaluate work; to hire employees; to
discipline or dismiss employees; or have signif-icant
input into such actions.
(b) ".Managerial positions" are defmed as po-sitions
which manage estabhshed divisions or
subdi\isions of a department, agency or univer-sity.
These employees direct the work of one or
more supervisors and have the authority to hire,
reward, discipline, or discharge employees.
These employees may also provide suggestions
for changes in policy to senior executives with
policy-making authority.
(c) "Executive managerial" positions are de-fmed
as policy making positions. Employees in
these positions are agency/department heads,
university chancellors, deputies, assistants, vice-chancellors,
and other policy makers. The em-ployees
in executive managerial positions are
usually appointed or elected. Eor the purposes
of this policy, the defmition of supervisors, man-agers,
and executives also includes the setting of
performance expectations, conducting perform-
6: 1 1 NOR TH CAROLINA REGIS TER September 3, 1 991 698
PROPOSED RULES
ance appraisal conferences and evaluating per-formance.
(d) "Incumbent Executives, Managers and
Supervisors" are defmed as executive managers
and supervisors hired or appointed into positions
pnorto July 1, 1991.
(e)
(1)
(3)
(0
EHOI Candidates" are defmed as:
Managers and supervisors hired on or after
July 1, 1991 and who may or may not
have served in a management role in state
government.
Incumbent executives, managers and
supen.isors appointed hired to a different
management position on or after July 1,
1991 and who have not completed the
EEOI are strongly encouraged to enroll.
Executive level managers who are hired
or appointed with or without executive
level experience in state government on
or after July 1, 1991.
"Training Level 1" is defined as the full
supervisors identified in Rule .0305(a) of this
Section. /Mso, management level employees as
identified in Rule .0305(b) and (c) of this Section
may participate on a space availabihty basis.
(g) "Training Level 2" is defmed as an abbre-viated
course designed for executive level man-agers
as identified in Rule .0305(c) of this
Section. Also, executive level managers as iden-tified
in Rule .0305(b) of this Section may par-ticipate
on a space availability basis.
Statutory Authority G.S. 126-16. 1
.
.0307 COl RSK SCI lEDL LING AND SITE
SELECTIONS
Traiiring as set out in Rule .0306 of this Section
may be scheduled and conducted at various sites
across the State of North Carolina. Schedules
will be distributed semi-annually and updated or
adjusted as necessary.
Statutory Authority G.S. 126-16. 1
.
EEOI Training designed for those managers and
699 6: 1 1 SOR TH CAROLINA REGIS TER September 3, 1 991
FINAL RULES
/idopted rules filed by the Departments of Correction, Revenue and Transportation are published
in this section. These departments are not subject to the provisions of G.S. I SOB, Article 2 requiring
publication in the N.C. Register ofproposed ndes.
LJpon request fom the adopting agency, the text of ndes will be published in this section.
TH LF 5
DEPARTMKM OF CORRECTION
CHAPTER 2 - DIMSION OF PRLSONS
SI B( IFAPIFR 21) PI BLIC (OMMUMCATIONS
SECTION .06(HI - ACCESS TO INFOR^L\TION/IN^FA IE RECORDS
.0601 FNAFATF RECORDS
(a) Matters of public record will be made available for examination upon request. Copies may be
provided at the expense of the requestor. An imnate's or former inmate's name, age, race, sex, oflcnse
for which con\icted, court where sentenced, length of sentence, date of sentencing, date of arrival at
or transfer from a prison, program placements and progress, custody classification, disciplinar}' offenses
and dispositions, escapes and recaptures, dates regarding release, and the presence or absence of
detainers will be considered matters of public record. Except as provided in this Section, no other
matenal may be released to anyone. Unauthorized release of confidential information by departmental
employees will be cause for immediate dismissal or other appropriate disciplinary' action.
(b) Medical records, except for psycliiatric and psychological evaluations of an inmate or former in-mate
may be released to a physician, the legal representative of the inmate, or the personal represen-tative
of a deceased former inmate with the written consent of the person to whom such records pertain
or the personal representative of such person if the inmate is deceased.
(c) Mental Health Records. Upon written consent, the content of an inmate's mental health records
may be released to the attending psychologist, ps\cliiatrist, or governmental agencies directly invohed
in mental health, rchabihtation, or disability services or esaluations. Mental he;dth records may be
released to the inmate's hcensed attorney upon a request specifying with reasonable clearness the par-ticular
records of treatment which the attorney needs to review. If the mental health records do not
contain any reference to the treatment with which the attorney is concerned, the attorney wiU be so
advised. The request must be accompanied by a statement signed by the inmate giving his consent for
the attorney to have access to the records. The Chief of Mental Health Services or his designee wiU
review the records to determine if the release of any material contained in the requested records poses
any risk of harm to another person or would \iolate the confidence of any third party. If the requested
records do contain such material, the records will be released in a form in wliich such material has been
deleted or in which the contents of such material has been summarized to provide the requested infor-mation
without risking harm to other persons or violating the confidence of third parties. The attorney
to whom the records are released shall promise in writing not to aUow the inmate direct access to the
records but may discuss the contents of the records with the inmate, fhe attorney will not rc\eal the
contents of the records to other persons except mental health professionals, such as psychologist or
psychiatrist who may be employed as an expert witness. If any attorney shall violate his or her promise
to m;iintain the confidentiality of the mental health records, he or she and, or the firm with which he
or she is associated shall lose the privilege of having access to mental health records. Copies of mental
health records will be provided at the expense of the requestor.
(d) Material contained in inmate files may be released to official federal, state law enforcement
agencies, and the staff of the Attorney General's Office when their representatives present proper cre-dentials.
Such agencies must agree to maintain the confidential nature of the material or irifonnation.
Materials will be provided to the courts upon recjuest. No material should be copied unless absolutely
necessary.
Ilistofy \ote: Statutory Authority G.S. NS-//:
6:11 NORTH CAROLINA REGISTER September 3, 1991 700
FINAL RULES
Eff. Fcbf-uarv I. 1976:
Amended Eff. September I. 1991; July I. 1987.
TITLE 19A
DEPARTMENT OF TRANSPORTATION
CHAPTER 3 - DIMSION OF MOTOR \ EHICLES
SI BCHAPTER 3D - ENFORCEMENT SECTION
SECTION .0100 - GENERAL INFORMATION
.0101 PURPOSE
This Section establishes rules for and provides information on the following:
(1) motor \chiclc dealer sales, distributor and factor>" representative license;
(2) motor %ehicle thefts;
(3) mechanics and storage lien;
(4) notice of sale;
(5) safety inspection of motor \'eliicles;
(6) licensing of safety inspection stations;
(7) enforcement of weight regulations; and
(8) appro\al of motor \ehicle safety equipment.
Histon- \ole: Statutory Authority G.S. 20-1; 20-39; 20-45; 20-49 through 20-50;
20-52.1; 20-57; 20-64(a); 20-6S; 20-72 through 20-79.1;
20-82 through 20-83; 20-84. 2; 20-85 through 20-86; 20-86.1;
20-87 through 20-88; 20-88.1; 20-91.1; 20-96; 20-99;
20-103 through 20-104; 20-114; 20-116; 20-117.1; 20-118; 20-1 IS. I;
20-122 through 20-135.3; 20-183.2 through 20-183.12; 20-308;
20-347; 44A-1 through 44A-4; 54-4; 55-)31; 66-68; 105-449.52;
153-9; 160A-303;
Eff July 1. 1978;
Amended Eff October 1. 1991; February I, 1982.
SECTION .02(K) - MOTOR \ EHICI E DEALER. SALES, DISTRIBUTOR .\ND FACTORY
REPRESENTAinE LICENSE
.0216 DEFINITIONS
(a) Statuton,' Defmitions: Definitions for words and phrases used in these regulations not defmcd in
subsection (b) shall be the same as the definitions appearing in G.S. 20-286 and G.S. 20-4.01.
(b) Administrative Definitions: The following words and phrases shall have the meanings listed be-low
when used in these regulations:
(1) "Established Salesroom" - Means a salesroom containing 96 square feet of floor space in a per-manently
enclosed building or structure which is separate and apart from any living quarters,
residence or other business and having a separate entrance; where any vehicles displayed are
separate and apart from vehicles of any other dealer; ha\'ing displayed thereon or immediately
adjacent thereto a sign, in block letters of not less than 3 inches in height on a contrasting
background, clearly and distinctly designating the trade name of the business at which a per-manent
business of bartering, trading and selling of motor \ehicles will be carried on as such in
good faith and at which place of business shall be kept and maintained the books, records, and
files the Division may require as necessary to conduct the business at such location. A building
would not be considered permanent if it has wheels. In order for a manufactured home to be
considered a permanent enclosed building, it would have to be underpinned and wheels re-moved.
Pro\ided, howe\-er, the minimum area requirement provided for in this Paragraph is
not applicable to any established place of business lawfully in existence and duly Licensed on or
before January 1, 1978.
(2) "I'stablished Office" (Wholesaler) - Means an otTice containing 96 square feet of fioor space in
a pennancntly enclosed building or structure which is accessible to Division personnel and is a
place where books, records and files are required to be kept.
701 6:11 NORTH CAROLINA REGISTER September 3, 1991
FINAL RULES
(3) "Supplemental Location" - .\ny improved or unimproved lot that is not immediately adjacent
to the principal place of business at which a permanent business of bartering, trading and selling
motor vehicles will be carried on as such in good faith and which is located within the relevant
trade area of the applicant dealer as defmed by G.S. 20-286(1 3b). A supplementary' lot must
have displayed thereon a sign in block letters not less than 3 inches in height on a contrasting
background, clearly and distinctly designating the trade name of the business and the address and
telephone number of the principal place of business. Supplemental locations must operate in
exactly the same name as the principal place of business and only vehicles owned by or lawfully
consigned to the principal place of business may be offered for sale at supplemental locations.
Provided, the provisions of this Subparagraph shall not apply to sales of recreational vehicles
and boat trailers which take place at trade shows within the franchise area of the participating
licensed dealers. If a particular recreational vehicle or boat trailer manufacturer has not awarded
a franchise in an area where a trade show is to take place, other licensed dealers holding a fran-chise
from the manufacturer may nonetheless participate in the show.
(4) "Suspension" - Ihe temporary withdrawal of a license issued by the Division of Motor Vehicles
to a motor \'chiclc dealer, manufacturer, factor^' branch, distributor, distributor branch, whole-saler
or their sales represcntati\e for a dcfmite period.
(5) "Re\'ocation" - The termination of a license issued by the Di\ ision of .Motor Vehicles to a motor
vehicle dealer, manufacturer, factory branch, distributor, distributor branch, wholesaler or their
sales representative.
(6) "Automobile" - Any passenger car or station wagon.
Histoty .\ote: Filed as a Femporary Amendment Eff. February 9, I9S9 for
a Period of ISO Davs to Expire on August 8, I9S9;
Statutory 'Authority G.S. 20-1: 20-302;
Eff. June I. 1988;
Femporaty Amendment Expired Eff .August S, I9S9;
Amended Eff October /. 1991: October f 1989.
.0217 AFPIJCATrON FOR LICENSE
(a) Applications for all licenses required by the Dealers and .Manufacturers Licensing Act shall be
made on forms furnished by the Division and signed by the Owner, partner or proper officer of a cor-poration
and filed with the Lnforcement Section, N. C. Division of .Motor Vehicles; Raleigh. North
Carolina 27697, accompanied by the necessar\' fees; provided, the Division shall not issue a motor ve-liicle
dealer license to a new motor vehicle dealer unless or until the applicant has satisfied the Division
that a distributor or manufacturer has awarded the applicant a franchise to sell new motor vehicles in
the relevant market area for which a license is sought.
(b) The application and renewal for license to do business as a manufacturer, factory branch, dis-tributor,
distributor branch, wholesaler or dealer, must be signed by the owner, partner or an officer
of the corporation. The application for license as a motor vehicle sales representati\e, distributor or
factory representative must be certified by the owner, partner, or an officer of the corporation.
(c) Application for all licenses required by the Dealers and Manufacturers Licensing Act must accu-rately
describe the physical location of the business such as: street number, street name, city, state and
zip code. If a post office bo.x or rural route is used, the above infonnation must also be included. It
is not permissible to have a mailing address different from the actual location of the business. Whole-sale
applicants must supply the Division with a telephone number at which such business may be
contacted by a representative of the Division concemmg records and sales transactions.
(d) Each applicant before being approved for license as a motor \cl'ucle dealer, manufacturer, dis-tributor,
distributor branch, wholesaler or factory' branch shall furnish a corporate surety bond, cash
bond or fixed value equi\alent thereof in the amount of twenty-five thousand dollars ($25,000) for one
estabhshed salesroom of the applicant and ten thousand dollars ($10,000) for each of the appUcant's
additional established salesrooms. The amount of the bond for other applicants required to furnish a
bond is twenty-five thousand doUars ($25,000) for one place of business of the apphcant and ten
thousand dollars ($10,000) for each of the applicant's additional places of business. This bond shall
remain in force and effect so long as the hcensee remains in business. When a cash bond or equi\alent
thereof is filed with the Di\ision, same shall remain in effect for a period of four years after termination
of business. The name and address appearing on the bond must be exactly as shown on the applica-tion.
6:11 NORTH CAROLINA REGISTER September 5, 1991 702
FINAL RULES
(e) The Division must have evidence of an assumed name being filed witli the Register of Deeds in
the county in North Carolina where the business is maintained when such business is operated under
any designation, name or style other than the real name of the owner or owners thereof or under its
corporate name. /Vfter this filing when there is a change of name and or ownership, such must be filed
with the Register of Deeds and evidence of this change being filed furnished to the Division of Motor
Vehicles.
(f) A foreign corporation must procure a certificate of authority from the North Carolina Secretary
of State before being licensed to operate in this State under the Dealers and .Manufacturers Licensing
Law. and written proof of same pro\ided to the Division.
(g) Before a North Carolina corporation can be licensed under the Dealer and Manufacturers Li-censing
Law, articles of incorporation must ha\e been fded with the North C:u'oUna Secretary of State,
and written proof of same provided to the Di\ision.
(h) Before the Division can issue licenses required by the Dealers and Manufacturers Licensing Act,
the established salesroom or estabhshed office is required to be in compliance with all state, county and
municipal zoning ordinances or regulations, and written proof of same provided to the Di\ision.
(i) Fnor to issuance of licenses required by the Dealers and .Manufacturers Licensing .-\ct. the appli-cant
must purchase all required state and local "' I'raders" licenses, and wntten proof of same provided
to the Division.
(j) License fees for each fiscal year, or part thereof shall be as provided under G.S. 20-289: provided
no license shall be issued until the fees for license required by G.S. 20-79 ha\e been paid to the Dhision.
(k) Upon receipt of application for any license required by the Dealers and .Manufacturers Licensing
.\ct, the Commissioner shall cause an investigation to be made to determine whether the apphcant
meets the requirements of law for licensing as a motor vehicle dealer, manufacturer, factoPt' branch,
distributor, distributor branch, wholesaler, motor vehicle sales representative, factor.' representative or
distributor branch representati\'e. and this shall include the inspection of the proposed location, appli-cations
and other required documents by an agent of the Enforcement Section.
(1) When applicant for license under this section is approved, based upon the application and the
results of in\'estigation made, the applicant will be issued license subject to the following limitations:
(1) A license issued under the .Motor \'ehicle Dealers and Manufacturers Licensing Act shall be \'alid
until suspended, revoked or expired. License must be at all times conspicuously displayed at the
place designated therein.
(2) Any motor vehicle dealer, manufacturer, factory branch, distributor, distributor branch, or
wholesaler who moves his place of business from the location for which license was issued shall
immediately notify the Enforcement Section. North Carolina Division of \Iotor Vehicles, of
such change of location and shall not engage in the business of buying, seUmg. trading or man-ufacturing
motor vehicles until the new location has been inspected and approved by an agent
of the Division and the necessary form and additional fees, if any, have been submitted to the
Division.
(3) License issued pursuant to this ^Article shall not be assignable and shall be \alid only for the
owner, or owners m whose name or names they are issued and for transaction of business only
at place designated therein. If indi\idual, partnership or proprietorship should incorporate, new
fees are due.
(4) The Division shall be notified when there is a change of name and licensee shall produce evidence
that a bond as required by G.S. 20-2SSfe) is in effect.
(m) The Commissioner shall deny the application for any license under the Motor \'ehicle Dealers
and Manufacturers Licensing Act of any applicant who fails to meet the qualifications set out in Article
12 of Chapter 20 of the North Carolina General Statutes. Upon denial, applicant:
(1) Will be notified by certified mail within 30 da\s from denial of license, directed to the address
shown by applicant on application form.
(2) Upon request, will be atYorded a hearing by the Commissioner of .Motor \'ehicles as required
under provisions of G.S. 20-295: applicant must tile request for hearing allowed b>' this section
within 30 days of denial of license.
(n) E\'ery motor vehicle sales representative who engages in business in this State as such must obtain
a license. Applicants for a motor veliicle sales representati\e's license shiill be subject to the tbllowing
pro\isions:
(1) A sales representati\c. factor. represcntati\e, or distnbutor representative, must be employed
b\' a motor \'ehicle dealer, manufacturer, factory branch, distributor, distributor branch, or
wholesaler.
~03 6:11 NORTH CAROLINA REGISTER September 3, I99I
FINAL RULES
(2) /\]1 applications for sales representative, factory representative, and distributor representative li-censes
must be made on forms furnished by the Division. Each application must be signed by
the applicant and endorsed by the employer or employers.
(3) AU sales representative, factory representative, and distributor representative licenses shall be
valid until suspended, revoked, or expiration, or until employment as a sales representative,
factory representative or distributor representative is terminated.
(4) /VU sales representatives, factory representatives, and distributor representatives shall at the time
of changing employment return his license and make application to the Division on forms fur-nished
by the Di\ision designating the name and address of the new employer and must be
signed by the applicant and endorsed by the employer or employers.
If the representative changes employers, the representative shall immediately apply to the Division for
a license that states the name of the represenative's new employer. The fee for issuing a license stating
the name of a new employer is one-half the fee set in G.S. 20-289 for an annual license.
Histoty Note: Statutoiy Authority G.S. 20-1: 20-52.1; 20-75; 20-79; 20-S2;
20-2S6(6) and (15); 20-287p; 20-288; 20-290(a); 20-291:
20-294 through 20-296: 20-30 J through 20-305; 20-305. J through 20-305.3:
54-4; 55-131; 66-68; l43B-550(g):
Eff. June I, 1988;
Amended Eff. October I. 1991: September I. 1991.
.0218 DESCRIPTION OF LICENSE
(a) Every license issued to a dealer, manufacturer, factory branch, distributor, distnbutor branch, or
wholesaler must show the name of the business, location, hcense number and expiration of hcense.
(b) Ever>' hcense issued to a sales, factory or distributor representative must show his name and ad-dress,
name of liis employer and expiration date.
(c) Every dealer and manufacturer plate must show a distinctive number, the name of this State, the
year it was issued for and a distinguishing symbol or word showing that the plate or plates are issued
to a dealer or manufacturer.
(d) Every motor vehicle dealer, manufacturer, factor,' branch, distributor, distributor branch, or
wholesaler shall, on or before the 30th day of June in any calendar year, apply for and obtain, upon
payment of proper fees, the hcense ;md number plates required by G.S. 20-79.
Histoty Xote: Statutorv Authority G.S. 20-1: 20-79; 20-290{a); 20-291;
Eff. June I, 1988:
'
Amended Eff October f 199
E
.0219 BISINESS RECORDS
(a) /Ml motor vehicle dealers, manufacturers, factory branches, distributors, distributor branches and
wholesalers shall keep a record for at least four years of all vehicles manufactured, received, sold, traded
or junked. In addition to these records, a copy of a damage disclosure form, completed with the in-formation
required by law from the seller and a copy of a damage disclosure form, completed with the
information required by law, given to the .purchaser. An odometer disclosure form shall be retained
for a period of five years as required by G.S. 20-347.1.
(b) Additional records required under this section shall include:
(1) Make, body style, vehicle identification number, and year model.
(2) Name of person, firm or corporation from whom acquired.
(3) Date vehicle purchased or manufactured.
(4) Name of person, firm or corporation to whom sold or traded. If \ehicle junked, date, name and
address of person, tirm or corporation to whom frame, motor and body sold.
(5) Date vehicle sold or traded.
(6) Copy of bill of sale (written statement).
(c) All records required to be maintained in Paragraphs (a) and (b) shall be kept and maintained for
every vehicle purchased or sold and shall be kept so as to be readily available for inspection upon de-mand
from an authorized agent of the North CaroUna Division of Motor Vehicles in order that the
ownership of any vehicle purchased or sold can be traced.
(d) Manufacturer's Certificates of Origin and title for all vehicles owned by a motor vehicle dealer,
manufacturer, factor}' branch, distributor, distributor branch or wholesaler must be immediately avail-able
to assign to the purchaser.
6:11 NORTH CAROLINA REGISTER September 3, 1 991 704
FINAL RULES
(e) Retail installment sales must be made in accordance with G.S. 20-303. Cash sales may be made
by proper endorsement and delivery of the title to the purchaser and any other receipt that the pur-chaser
and seller agree upon.
(f) Pursuant to 16 CFR 455.2 a dealer shall not willfully remove the "Monroney L^bel" or sticker
from a new automobile that is displayed for sale. The "Monroney Label" must be affixed to the new
automobile at the time of sale to the ultimate purchaser. "Ultimate Purchaser" means the first person,
other than a dealer purchasing in fiis capacity as a dealer, who in good faith purchases a new automobile
for purposes other than a resale.
(g) Pursuant to 15 L'SC Sec. 1231 every dealer offering used cars for sale shah post buyers guides
with warranty information as required by the federal Trade Commission and same shall be displayed
at the time of sale.
Histoty Sole: Siaiutoty Authoriiv G.S. 20-1; 20-52, 20-75; 20-79(a} and (b); 20-82;
20-286(6J and (I5i; 20-297; 20-302; 20-303; 20-347;
Eff. June I. 1988;
Amended Eff. October I. 1991; October I. 1989.
.0221 CONDITIOVS FOR ISSl ING I KMPORARV MARKER.S BY A DEALER
(a) Ownership in the \ehicle must pass from the dealer to the purchaser b\' assigning the title or
.Manufacturer's Certificate of Origin and by delivering the vehicle to the buyer.
(b) Dealer has obtained from purchaser an application for registering and titling of the purchased
\ehicle.
(c) Dealer has collected all prescribed fees for titling and registering the vehicle.
(d) Dealer has certification (Porm I'R-2) certilying liability insurance in effect.
(e) Exception:
The only exception to the above rules b and c is when the dealer is selling the vehicle to an
out-of-state purchaser and the vehicle is to be removed from the State of North Carolina to the
purchaser's home state prior to the expiration of the 30-day temporary registration marker.
Form FR-2 (Insurance Certification) shall be completed and kept by the dealer as part of his
records.
(f) Issuance of 30-day temporary marker:
(1) All 30-day temporary markers shall be issued in numerical order, beginning with the lowest
number of the set or sets.
(2) The \ehicle identification number, the make, the issuance date, and the expiration date shall
be entered clearly and indehbly on the face of the temporar>' marker.
(3) A receipt, which corresponds in number with the 30-day temporary marker, shall be issued.
(4) The receipt shall be completed in duplicate, with pen and ink, and must be readable.
(5) The white copy of the receipt, with the 30-day marker, shall be delivered to the purchaser. The
pink copy is to be retained in the book by the issuing dealer for at least one year.
(6) /Ml documents necessary to title and register the vehicle shall be presented to a license plate
agency or mailed to the North CaroLma Division of .Motor Vehicles four working days from date
of issuance.
(EXCEPTION): WTien the purchaser is a nonresident, a 30-day temporary marker may be is-sued
to the nonresident for the sole purpose of removing the vehicle to his home state, pro\ided
the customer has in effect liability insurance u ith a compan_\" licensed in North Ciirolina. 1 he
dealer is neither required to obtain from such nonresident a written application for North
Carolina registration nor to collect the North CaroUna registration fees. IIowe\er, Form FR-2
should be completed and kept hy the dealer as part of his records. If a plate is to be transferred,
a 30-day temporary marker cannot be issued. Record the information on the report sheet in the
back of receipt book.
(7) All 30-da\' temporary markers and or receipts that are voided shall be marked "\olded" and
recorded on the report sheet. The white copy of the receipt and the 30-day temporary marker
shall be forwarded to the North Carohna Division of Motor Vehicles Enforcement Section to-gether
with the report sheets. Receipts and 30-day temporary markers that do not match shall
be returned to the Di\ision after recording on report sheet. The receipt is not to be altered.
(S) Only one 30-day temporary marker ma\' be issued per vehicle per sale.
(9) Upon issuance of all receipts (.Markers) in each receipt book, the report sheet must be completed
in duplicate and the original mailed to the Division. A copy of the report sheet must be retained
by the Dealer for one year.
'705 6:11 NORTH CAROLINA REGISTER September 3, 1991
FINAL RULES
(10) .411 30-day temporar)- markers are non-transferable between dealers.
History Note: Statutory Authority G.S. 20-39; 20-79.1;
Eff. June I, I9S8:
'
Amended Eff. October I, 1991; October I, 1989.
.0223 DE.\LER PLATES
Application for plates must be signed by owner, partner or officer of the corporation. Lost or stolen
dealer plates must be reported to the Division of Motor Vehicles in writing. To replace such plates,
complete the appropriate form and submit a fee often dollars ($10.00) for each plate.
History Note: Statutory Authority G.S. 20-39; 20-68: 20-85(5);
Eff June I, 1988:
Amended Eff October I, 1991.
.0224 ILLEGAL USE OF DEALER PL.ATES
(a) It is illegal to use dealer plates on vehicles operated for any other business that the dealer is en-gaged
in. The sale of vehicles not required to be registered, excluding farm tractors, is considered an-other
business and delivery of such vehicles by motor transport is not permitted with dealer plates.
(b) Parts trucks used in delivering parts to other sales outlets may use dealer plates only if the sale
of parts is incident to the dealer business. A parts business that is separate and apart from the dealer-ship
cannot use dealer plates.
(c) It is illegal to use dealer plates on vehicles that are not owned by the dealer.
(d) It is illegal for persons other than dealers, corporate officers, full-time and designated part-time
employees to operate a dealership vehicle unless they are in possession of a 96-hour permit. The said
permit must include license plate number, pcrmitee's name, address, driver's license number, date and
hour of issue and must be signed by dealer or sales manager and person receiving vehicle. A duplicate
copy of the permit must be retained by the dealer. Void if erasures are made.
(e) It is illegal to use dealer plates on wreckers used for general wrecker service or on wreckers which
move vehicles on a rotation basis at the request of state or local law enforcement authorities. It is
permissible to use a dealer plate on wreckers which tow vehicles for the dealer's customers only.
History Note: Statutoiy Authority G.S. 20-39; 20-79;
Eff June I, 1988;
Amended Eff October I. 1991; October 1, 1989.
.0225 \ EHICLES OFFERED FOR SALE OWAED BY DEALERSHIP
No vehicle shall be sold or offered for sale or trade by any motor vehicle dealer, manufacturer, factory
branch, distributor, distributor branch or wholesaler until said motor vehicle dealer, manufacturer,
factory branch, distributor, distributor branch or wholesaler has in his possession a certificate of title
or manufacturers certificate of origin or same is immediately available to complete transfer of ownership
to the consumer-purchaser.
History Note: Slatuton' Authority G.S. 20-39; G.S. 20-79;
Eff June 1, 1988;
Amended Eff October 1. 1991.
.0226 VEHICLES OFFERED FOR SALE ON CONSIGNMENT
(a) Any dealer offering a vehicle for sale that is on consignment from a manufacturer, distributor,
factory branch, distributor branch, wholesaler or individual shall have in his possession a consignment
contract for each vehicle, executed by both parties.
(b) The consignment contract shall consist of the following:
(1) The effective dates of the contract.
(2) The complete name, address, and the telephone number, if available, of the owner.
(3) A complete description of the vehicle on consignment, including the make, model, body style,
year, and vehicle identification number.
(4) The listing charges.
(5) The percentage of commission or the amount of the commission the dealer is to get if the vehicle
is sold.
6:11 NORTH CAROLINA REGISTER September i, 1991 706
iTBrrvirann
FINAL RULES
(6) The "after tcm^ination" clause shall not exceed 30 days.
(c) /Vny dealer offering a vehicle for sale on consignment must tell the prospective customer that the
vehicle is on consignment unless the dealer is going to take ownership of the vehicle by completing a
re-assignment on the title documents. yVny dealer selling a vehicle on consignment from a wholesaler
must take ownership of that vehicle prior to its retail sale.
(d) Dealer plates cannot be used to demonstrate a vehicle on consignment. The consignee's plate
may be used if liability insurance is in effect.
(e) In addition to a consignment contract, the dealer shall have in his possession an equipment listing
of the \ehicle, consisting of, but not Imiited to, the following:
(1) Owners name and address.
(2) Complete description of the vehicle which shall include the year, make, model, body style, color,
odometer reading, special or extra equipment, and the disclosure of known defects.
(3) The \ehicle must display a current safety inspection certificate.
(fj The ownership documents of any vehicle on consignment must be made available to any au-thorized
agent of the North CaroUna Division of Motor Vehicles on request. 1 he ownership docu-ments
must be readily available from the owner.
(g) The owner must execute the ownership documents and deli\er them to the purchaser at the time
the vehicle is deli\ered.
Ilisioty \ote: Statulorv Authority G.S. 20-302;
Eff. June I, I9SS:
Amended Eff. October I. 1 99 1.
.0227 \ KHICI KS OFFKRKD FOR SALE ON \ FLOOR PLAN LILN
(a) .Vny dealer offering a vehicle for sale that has a floor plan lien on it shall at the time of sale, satisfy
the floor plan lien and obtain the title from the floor plan henholdcr, execute the title documents and
dehver them to the purchaser or the lienholder as required by G.S. 20-72 and G.S. 20-75 at the time
the vehicle is delivered.
(b) .Manufacturers Certificate of Origin and titles may be retained by the floor plan lienholder so long
as the Manufacturers Certificate of Origin and or titles are located within the boundaries of North
Carolina; pro\ idcd the de;dcr has in possession, available for inspection, an invoice from the manufac-turer
or distributor and a floor plan disclosure form completed, dated and signed by both parties.
Ilistofy \ote: Statutoty Authority G.S. 20-302;
Eff. June I. I9SS:
'
Amended Eff October I, 1991.
.0228 RILL OF SALE, ODOMETER STATEMENT - ^^ RITl EN DOCLMENTATION
(a) IMll of Sale - l'\er\' motor vehicle dealer, manufacturer, factor) branch, distributor, distributor
branch or wholesaler at the time of sale or trade shall provide to the buyer in writing the applicable
information listed below which may be on a bill of sale, buyer's order, financial statement or combi-nation
thereof. Each fonn must be completed in duplicate, signed by the buyer and seller, and the
original or copy pro\ided to the buyer and a copy of original retained by the dealer for four years. Such
documents shall include:
(1) Name and address of person, firm or corporation to whom vehicle sold or traded.
(2) Date of sale or trade.
(3) Name and address of motor vehicle dealer, m;mufacturcr, factor\' branch, distributor, distributor
branch or wholesaler selling or trading \cliicle.
(4) Make, body style, vehicle identification number and year model.
(5) Sale price of vehicle.
(6) Amount of cash down payment made by the buyer.
(7) Description of any vehicle used as a trade-in and the amount credited the buyer for sale trade-in.
[Description of trade-in shall be the same as outlined in Subparagraph (a)(4) of this Rule.)
(8) Amount of finance charge, if any, and interest.
(9) The cost of insurance to the buyer, if any, and an explanation of the type and amount of cov-erage.
(10) Any investigation charges, ser\'ice charges or any other charge or charges not included in pre-vious
items. The purpose of each charge must be specified.
(11) Net balance due from the buyer.
707 6:11 AORTH CAROLINA REGISTER September 3, 1991
FINAL RULES
(12) The amount of each payment and the time and schedule of deferred payment and to whom
payments are to be made.
(13) Bill of sale must be signed by both the seller and buyer.
(b) Odometer Statement - Odometer disclosure statements must comply with Article 15 of Chapter
20 of the North Carolina General Statutes and copies retained for a period of five years.
Uistoty \ote: Statutory Authority G.S. 20-39;
Eff. June I, 1988;
Amended Eff. October I, 1991; October I, 1989.
.0231 IIE.ARIXGS PURSL ANT TO ARTICLES 12 AND 15 OF CHAFFER 20
(a) The following shaU be applicable to hearings requested under G.S. 20-296:
(1) No license issued under this Article shall be suspended, revoked or renewal refused until a hearing
has been held before the Commissioner or a person designated by him and licensee shall have
been notified in writing ten days prior to such hearing by certified mail to his last known address
as shown by records of the Di\'ision. Fro\ided, however, if a licensee fails to maintain a bond
as required by G.S. 20-2S8(e) or fails to purchase dealer license plates as re