Rep. Harry Warren’s Legislative Newsletter for October 20th

Rep. Harry Warren (N.C. District 77) Harry.Warren@ncleg.net  (919) 733-5784

♦ Hello, Friends!

On August 28^th, my Legislative Assistance, Ms. Shara Graham,  retired, after serving more than 10 years with the legislature. It was my good fortune that she spent the last four of those years with me. From the moment my wife and I decided to become politically active, God has blessed me with having the right people to assist me, at just the right time that I needed their skills and talent to help accomplish the work at hand. Shara has truly been one of the most wonderful blessings. Her experience and knowledge about the legislature and the “politics” of the process has helped guide me away from making any serious missteps. She helped me connect with the essential stakeholders as I worked on various legislation these past four years; representing Rowan County. Shara was the person who set the appointments with stakeholders, subject experts, department Secretaries and other legislators, to discuss and develop the bills that I was drafting. Among those efforts, we had four major bills signed into law by Governor Perdue, during our first term together. The E-Verify bill, mandating employers use the Homeland Security E-Verify system for employment, “Laura’s Law” that closed a loophole on drunk drivers and “Run and You’re Done” that increased penalties for high speed chases to elude arrest were among them. This past session, eight other major bills we worked on were signed into law by Governor Pat McCrory, including one that became law over his veto. Those bills included the “Back to Basics”, cursive writing requirement, closing a loophole on the sex offender registry, HB4 – the Reformation of the State Unemployment Program and HB589 – V.I.V.A. – the Voter Information Verification Act that required a photo identification for in-person voting. Shara’s strength in the area of constituent services was one of the truly great contributions that she made to our office. Her ability to resolve an issue or to connect folks to the right people, earned her high praise from all of those she helped. Her performance may have given people the impression that I had an “office staff”, when in fact, it was just her. I wish Shara and her husband Bob, many happy years of retirement and send her off with my sincerest gratitude.

Please welcome my new Legislative Assistant, Ms. Cristy Yates! Cristy comes to me from the House Principal Clerk’s Office.  She also worked for the House Principal Clerk’s Office in 1992-1993 followed by 10 years with the State of North Carolina before leaving to work for VerizonBusiness as a Project Manager. Cristy returned to the House Principal Clerk’s Office in May of 2014 and worked throughout the short session. As Shara’s retirement date approached, Cristy’s term in the House Principal Clerk’s Office was drawing to a close. It appears that once again, the Lord has sent someone to assist me, at just the right time! Cristy has not served as a Legislative Assistant before but has been a remarkably quick study who knows who to go to if she needs any assistance in addressing constituent issues. I am looking forward to working together in the upcoming 2015 session and hope you will join me in welcoming Cristy to District 77.

Although the General Assembly adjourned “sine die” in August, many of the various Interim Committees are still meeting to do research, take testimony and to prepare legislation or recommendations to the 2015 General Assembly. Since the meetings are usually monthly and do not occur at the same time, I felt it would serve you better to give you an update on the meetings, after they have had several, rather than send you two or three updates on individual meetings each week. Now that coal ash and teacher compensation have been addressed, the most controversial issues being discussed are Medicaid reformation, discussions about possible Medicaid expansion and needed rules for the Employment Security Commission. Toll roads and alternative funding for our highway and transportation infrastructure needs are also subjects of discussion.

This newsletter contains summaries of various meetings held over the past two months, as provided by the MVA Newsletter Update. I am including this week’s calendar of scheduled meetings and links to some of the current topics as covered by other media. I hope you find this newsletter interesting and informative.

Here are the most recent meeting summaries:

COMMITTEE REPORTS

 Joint Legislative Program Evaluation Oversight Committee

The Committee met on Wednesday, October 15th, and heard a presentation on a study recently completed by the Program Evaluation Division with respect to veterans’ programs offered by the State.  The study recommended that the General Assembly a) establish a taskforce to address veterans’ issues, b) direct the taskforce to develop a statewide strategic plan, c) direct State agencies to track and report information on veterans, and d) establish an oversight committee to monitor implementation of the strategic plan.  The Committee also took up a motion from Representative Howard requesting the State Auditor to conduct detailed financial audits of six departments for the 2013-14 fiscal year (Health and Human Services, Public Instruction, Public Safety, Revenue, Transportation, and the State Treasurer) and directing the State Auditor to provide estimates of the costs of conducting detailed financial audits of each State agency annually.  These audits would provide greater detail than the Comprehensive Annual Financial Report conducted each year by the State Auditor.  The more detailed audits have not been conducted in 20 years since the Government Accounting Standards Board modified requirements for the annual report.

 Revenue Laws Study Committee

The Committee met on Tuesday, October 14th, and began with an overview of Finance Law changes enacted by the General Assembly in 2014.  For the most part, this was a summary of what happened last year.  However, staff did discuss the timing of the repeal of local privilege license taxes.  The first substantive item addressed involved a fairly complex issue regarding the personal income tax imposed on some retirement benefits.  The second substantive item discussed involved efforts by various State agencies to address misclassification of workers as contractors rather than employees.  Misclassification of workers can result in uncollected personal income taxes and unemployment insurance taxes.  No legislation was presented on either of these items.  Finally, there was an initial technical corrections draft presented at this meeting.  It included only the items in the second technical corrections bill from 2014, which did not pass in the closing days of session.

 Joint Legislative Oversight Committee on Health and Human Services

The Committee met on Tuesday, October 14th, and Senator Hise chaired the meeting.  The Department of Health and Human Services (DHHS) Secretary Wos gave opening remarks regarding the agenda for the meeting and started the Ebola update prior to the full Ebola update that was given by Dr. Megan Davies.  Dr. Davies serves as the State Epidemiologist and Chief within the Division of Public Health at DHHS.  Rudy Dimmling then gave the Medicaid budget update. Dimmling is the Acting Director of Finance within DMA at DHHS. 

Following those reports, Sandra Terrell, Acting COO within DMA, gave the committee a report on the Program of All-Inclusive Care for the Elderly (PACE).  Linda Shaw, Executive Director for the NC PACE Association, and Aimee Reimann, Chair of the NC PACE Association and COO for United Church Homes and Services, participated in the presentation as well.

 Finally, DHHS staff gave two updates on the Behavioral Health Continuum of Care.  Dave Richard, Deputy Secretary of Behavioral Health and DDS at DHHS, gave an update on the use of state appropriations for Behavioral Health Urgent Care Centers and Facility-Based Crisis Centers.  Chris Collins, MSW Director at the Office of Rural Health and Community Care at DHHS, and Dr. Sy Saeed, Director of the NC Statewide Telepsychiatry Program at ECU, gave an update on that program.

 The next Committee meeting will take place on November 18th. 

 Joint Legislative Education Oversight Committee

The Committee met on Tuesday, October 7th. The Committee heard first reports regarding Elizabeth State University from the school’s chancellor, Stacey Franklin Jones, and UNC president Tom Ross. The Committee also heard from UNC staff regarding university tuition.

 Next, Julia Adams of The Arc of North Carolina and Jennifer Mahan of the Autism Society of North Carolina gave presentations on vocational training for students with intellectual disabilities.

 Finally, Superintendent of Public Instruction, Dr. June Atkinson spoke along with Race to the Top Director Adam Levinson regarding the Race to the Top program success. The report was supported by Friday Institute for Education Innovation staff, who presented findings from their program evaluation study.

 Joint Legislative Oversight Committee on Health and Human Services, Medicaid Reform/DMA Reorganization Subcommittee

On Monday, October 6th, the committee met.  The meeting comprised of presentations from the state Medicaid Directors from Florida, Ohio, and Virginia and a question and answer period.  Each of the Medicaid Directors gave an overview of his or her state’s system and discussed issues that arose in the context of system reform.

 Joint Legislative Oversight Committee on Health and Human Services, Subcommittee on Medicaid Reform/DMA Reorganization

The Subcommittee met on Wednesday, September 24th.  Steve Owen of the Fiscal Research Division presented on the cost drivers in the State Medicaid program.  Carol Shaw of the Program Evaluation Division presented on the findings of a study released by the Division last year with respect to options for reorganizing the entity that administers the Medicaid program.  Ryan Blackledge of the Legislative Drafting Division gave a brief overview of the various Medicaid reform initiatives suggested over the last 18 months.  In addition, representatives from Mercer Government Human Services Consulting presented on the results of a study they conducted in 2011 on opportunities and challenges that would be associated with attempting to manage all government health care programs (Medicaid, Health Choices, and the State Health Plan) within a single entity.

 Joint Legislative Oversight Committee on Health and Human Services

The Joint Legislative Oversight Committee on Health and Human Services met on Tuesday, September 9th.  A substantial portion of the meeting involved presentations from the Department of Administration and the Department of Health and Human Services on the State contracting process in general and the specific steps taken by DHHS with respect to operational and consulting contracts it had entered into with respect to the State Medicaid program.  In particular, members of the Committee questioned the reasons for a sole-source contract with Alvarez & Marsal, the amounts expended under the contract, and whether there were viable alternatives to a sole-source contract.  Secretary Wos also presented on restructuring initiatives undertaken by the Department and continuing challenges that the Department faces with recruiting and retaining qualified personnel.  After a lunch break, the Committee heard presentations about the Department’s budget close-out from the 2013-14 fiscal year (the Department reverted $104 million in cash at the end of the 2013-14 fiscal year, including $63 million from Medicaid) and about ongoing issues with the Medicaid budget going forward.  Next, the Department presented on the history and status of the implementation of the NC FAST computer system.  Finally, Speros Fleggas with the Department of Administration gave a brief update on ongoing negotiations between the State and the City of Raleigh with respect to the sale or lease of land associated with the Dix Hospital campus.

 Joint Legislative Program Evaluation Oversight Committee

The Joint Legislative Program Evaluation Oversight Committee met on Wednesday, September 17th.  The first part of the meeting was dominated by a presentation from the State Auditor about a report her office released in April 2014 with respect to the Physicians Health Program.  The Physicians Health Program is a program administered by the Medical Board and the Medical Society to ensure that physicians with substance abuse or mental health issues receive proper treatment.  Although the State Auditor did not find any instances of abuse in the program, the report highlighted a number of areas of concern where abuse could occur because of a lack of oversight, a lack of impartial due process procedures, and potential conflicts of interests.  Based on the report, the Program has agreed to make changes.  The State Auditor and officials with the Medical Board and Physicians Health Program answered numerous questions about the Program, its structure, its goals, and its impact on health care providers and the quality of health care in the State.  The Committee next considered some changes to the Program Evaluation Division’s work plan over the next biennium.  Concerns were raised by Committee members as to whether additions to the work plan would unnecessarily duplicate the efforts of other study committees.  After a great deal of discussion, the work plan was amended so that the Division would work in conjunction with other committees on studies dealing with the Physicians Health Program (and a similar program under the direction of the Dental Board), the Office of the Chief Medical Examiner, and alcohol and substance abuse education and prevention funding.  Finally, Secretary Wos of the Department of Health and Human Services addressed the Committee with respect to a report released by the Division in 2013 about possible alternative structures for the State Medicaid Program.  The Secretary reiterated her strong belief that the State Medicaid program should remain under the Department of Health and Human Services and that changes made with respect to DHHS over the past two years would provide more appropriate oversight for the program and would ensure more accurate forecasts on Program costs.

 Joint Legislative Program Evaluation Oversight Committee: Medicaid and Health Administration Subcommittee

The first of two committees (the Joint Legislative Program Evaluation Oversight Committee: Medicaid and Health Administration Subcommittee) looking at Medicaid reform this interim had its first meeting on Wednesday, September 3rd.  Two presentations by legislative staff were the primary focus of the meeting.  The meeting began with a presentation that summarized the findings of a report issued by the Program Evaluation Division in 2013 with respect to options for creating a separate Department of Medicaid.  Next, was a presentation that provided basic information about the State Medicaid program.  Following the two presentations, there was limited discussion among committee members most of which related to clarification of the presentations.

 Senate Rules Committee

The Senate Rules Committee met on Thursday, August 14th, chaired by Senator Apodaca.  The committee passed four bills.  Three bills were different adjournment resolutions.  HB1276 is an adjournment resolution that would end the session “sine die” and lawmakers would not return in November to consider Medicaid reform or other pending conference reports.  HB182 is another adjournment resolution that would adjourn the General Assembly until November 17th.  During this time period, Medicaid reform, veto overrides and a final adjournment resolution could be considered.  HB901 is the final adjournment resolution passed out of the Senate Rules Committee.  This resolution would allow the General Assembly to adjourn until November 17th and give them the ability to consider Medicaid reform, bills regarding lawsuits against the state, bills in conference, veto overrides, bills sent to conference with both chambers appointed by Friday, confirmations of special court judges, and a final adjournment resolution. 

 The final bill passed out of the Senate Rules Committee was HB718, Ensure Adequate Funds for TAs/Rev Allocation.  The bill includes a technical fix to remove restrictions on school districts so they can convert money set aside for teachers to teaching assistants.  There is also language in HB718 that makes certain changes to HB1224, Local Sales Tax Options/Econ. Devpt. Changes.  HB718 changes how much county commissioners can control the money used for education.  Also, the bill is written so that both of these changes will only go into effect if HB1224 becomes law. 

 ON THE FLOOR

 In the final week of the 2014 session, the House and Senate both passed SB3, JMAC Modifications, HB1276 Adjournment and adopted the conference report for SB729, Coal Ash Management of 2014. In addition, the Senate concurred in SB42, Confidentiality of UC Information that the House had passed in early July. 

 After lengthy debate in the House, the chamber narrowly voted not to concur with the conference report for HB1124, a bill that would have made various changes to economic development laws and capped the local sales tax in certain counties.

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This concludes summaries of major committee meetings held since August.  Here is the schedule for upcoming meetings, as per today, Monday, October 20, 2014.  If you would like to attend one that is focusing on a subject of interest to you, feel welcome to attend. Meeting schedules are subject to change (sometimes at the last minute), so be sure to confirm the schedule on the General Assembly website or by contacting the office of the Committee Chair, before you make the two hour drive to Raleigh

If you would like to attend a meeting, but can’t make it to Raleigh, you can still “attend” many of the meetings by listening online, just as you may have for the Interim Committee meetings.  You must first determine in what room the committee is meeting.  If the committee meets in either room 544 or 643, you can listen online.  To access the audio version of a meeting, go to: www.ncleg.net, click on “audio” on the bar near the top, then select either “Finance Committee Room (Room 544)” or “Appropriations Committee Room (Room 643)” to listen.

CALENDAR

Here are some links to current stories that you might enjoy:

IN THE NEWS

Raleigh News & Observer: Panel allows utilities to avoid sharing tax break with customers

WRAL: Despite big job promises, incentives often fail to deliver

Raleigh News & Observer: DHHS details mental health crisis plans

Raleigh News & Observer: State Medicaid program on budget, consultant says

Charlotte Observer: Judge’s ruling leaves city in control of Charlotte Douglas airport

Raleigh News & Observer: Coastal Energy Summit to highlight fossil fuels and renewable energy

Release: Peter Gwaltney Named President And CEO Of The North Carolina Bankers Association

Winston-Salem Journal: State officials hear Medicaid options from three states

NC Insider: NC’s new economic development agency begins work

Greensboro News & Record: Government agencies seek suggestions to heal the Dan River

            Finally, early voting is about to begin – please, exercise you right to vote. Let your voice be heard and counted!

            I hope you enjoy this newsletter and find it helpful. I will continue to send you updates of the activities of the General Assembly, as they occur.

          I would like to take this time to again, thank you for the opportunity to represent District 77 in the State House. I appreciate your input and your support.

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Harry