A BILL TO BE ENTITLED
AN ACT to authorize changes to certain mental health reform initiatives.
The General Assembly of North Carolina enacts:
SECTION 1.  Section 3(a)(9) of S.L. 2001‑437 reads as rewritten:
"(9)	Develop a readiness plan to conduct readiness reviews and certify all county programs and area authorities based on readiness by July 1, 2006. Each area authority and county program shall submit its approved business plan to the Secretary pursuant to G.S. 122C-115.2. Those county programs and area authorities applying to be certified by July 1, 2003, shall submit their approved business plan to the Secretary by January 1, 2003. County programs and area authorities applying to be certified after July 1, 2003, shall submit their approved business plans to the Secretary not later than six months prior to the anticipated date of certification. The Secretary shall review the business plans as provided in G.S. 122C‑115.2(c), conduct readiness reviews, and provide necessary assistance to resolve outstanding issues. The Secretary shall complete certification of one‑third of the area authorities and county programs by July 1, 2003.  The Secretary shall complete certification of all area authorities and county programs by July 1, 2006. 
               The State Auditor shall randomly select a representative sample of area authorities or county programs certified by the Secretary on or before July 1, 2003, and shall conduct a performance audit of those programs covering fiscal years 2001 through 2004.  Not later than July 1, 2005, the State Auditor shall report the results of the performance audit to the General Assembly, the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services, the Secretary of Health and Human Services, and the Governor."
SECTION 2.(a)  G.S. 122C‑141(a), as amended by Section 1.15 of S.L. 2001‑437, reads as rewritten:
"(a)	The area authority or county program may provide directly not more than fifty percent (50%) of the services provided by the area authority or county program, and may contract with other qualified public or private providers, agencies, institutions, or resources for the provision of  services. The area authority or county program shall indicate in its local business plan how services will be provided and how the provision of services will address issues of access, availability of qualified public or private providers, consumer choice, and fair competition. The Secretary shall take into account these issues when reviewing the local business plan. For the purposes of this section, a qualified public or private provider is a provider that meets the provider qualifications as defined by rules adopted by the Secretary."
SECTION 2.(b)  G.S. 122C‑112.1(a)(26), as enacted by Section 1.7(b) of S.L. 2001‑437, is repealed.
SECTION 3.  G.S. 122C‑115.1(a)(3), as enacted by Section 1.9 of S.L. 2001‑437, reads as rewritten:
…
 "(3)	A targeted minimum population of 150,000 or a targeted minimum number of five counties served by the program."
SECTION 4.  Notwithstanding any other provision of law to the contrary, for the 2002‑2003 fiscal year, counties may limit appropriations of county funds for the cost of providing mental health, developmental disabilities, and substance abuse services to the amount budgeted by the county for these services for the 2001‑2002 fiscal year.  The amount of county expenditures for the 2002‑2003 fiscal year for mental health, developmental disabilities, and substance abuse services required to be provided by the State or federal government that exceed county appropriations and available federal funds shall be paid by the State.
SECTION 5.  Notwithstanding any other provision of law to the contrary, counties shall not be required to appropriate funds for mental health, developmental disabilities, and substance abuse services that are required by the State but for which State funds have not been appropriated.
SECTION 6.  This act becomes effective July 1, 2002.