2000 Smart Start Legislation
§ 143B-168.10. Early childhood initiatives; findings.
The General Assembly finds, upon consultation with the Governor, that every child can benefit from, and should have access to, high-quality early childhood education and development services. The economic future and well-being of the State depend upon it. To ensure that all children have access to high-quality early childhood education and development services, the General Assembly further finds that:
(1) Parents have the primary duty to raise, educate, and transmit values to young preschool children; (2) The State can assist parents in their role as the primary caregivers and educators of young preschool children; and (3) There is a need to explore innovative approaches and strategies for aiding parents and families in the education and development of young preschool children.
§ 143B-168.11. Early childhood initiatives; purpose; definitions.
(a) The purpose of this Part is to establish a framework whereby the General Assembly, upon consultation with the Governor, may support through financial and other means, The North Carolina Partnership for Children, Inc. and comparable local partnerships, which have as their missions the development of a comprehensive, long-range strategic plan for early childhood development and the provision, through public and private means, of high-quality early childhood education and development services for children and families. It is the intent of the General Assembly that communities be given the maximum flexibility and discretion practicable in developing their plans while remaining subject to the approval of the North Carolina Partnership and accountable to the North Carolina Partnership and to the General Assembly for their plans and for the programmatic and fiscal integrity of the programs and services provided to implement them.
(b) The following definitions apply in this Part:
(1) Board of Directors. -- The Board of Directors of The North Carolina Partnership for Children, Inc.
(2) Department. -- The Department of Health and Human Services.
(2.1) Early Childhood. -- Birth through five years of age.
(3) Local Partnership. A county or regional private, nonprofit 501(c)(3) organization established to coordinate a local demonstration project to provide ongoing analyses of their local needs that must be met to ensure that the developmental needs of children are met in order to prepare them to begin school healthy and ready to succeed, and, in consultation with the North Carolina Partnership and subject to the approval of the North Carolina Partnership, to provide programs and services to meet these needs under this Part, while remaining accountable for the programmatic and fiscal integrity of their programs and services to the North Carolina Partnership.
(4) North Carolina Partnership. -- The North Carolina Partnership for Children, Inc.
(5) Secretary. -- The Secretary of Health and Human Services.
§ 143B-168.12. North Carolina Partnership for Children, Inc.; conditions.
(a) In order to receive State funds, the following conditions shall be met:
(1) The North Carolina Partnership shall have a Board of Directors consisting of the following 25 members:
a. The Secretary of Health and Human Services, ex officio, or the Secretary's designee;
b. Repealed by Session Laws 1997, c. 443, s.11A.105.
c. The Superintendent of Public Instruction, ex officio, or the Superintendent's designee;
d. The President of the Community Colleges System, ex officio, or the President's designee;
e. Three members of the public, including one child care provider, one other who is a parent, and one other who is a board chair of a local partnership serving on the North Carolina Partnership local partnership advisory committee, appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate;
f. Three members of the public, including one who is a parent, one other who is representative of the faith community, and one other who is a board chair of a local partnership serving on the North Carolina Partnership local partnership advisory committee, appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives;
g. Twelve members, appointed by the Governor. Three of these 12 members shall be members of the Party other than the Governor's party, appointed by the Governor. Seven of these 12 members shall be appointed as follows: one who is a child care provider, one other who is a pediatrician one other who is a health care provider, one other who is a parent, one other who is a member of the business community, one other who is a member representing a philanthropic agency, and one other who is an early childhood educator;
h. Repealed by Session Laws 1998-212, s.12.37B(a).
h1. The Chair of the North Carolina Partnership Board shall be appointed by the Governor;
i. Repealed by Session Laws 1998-212, s. 12.37B(a).
j. One member of the public appointed by the General Assembly upon recommendation of the Majority Leader of the Senate;
k. One member of the public appointed by the General Assembly upon recommendation of the Majority Leader of the House of Representatives;
l. One member of the public appointed by the General Assembly upon recommendation of the Minority Leader of the Senate; and
m. One member of the public appointed by the General Assembly upon recommendation of the Minority Leader of the House of Representatives.
All members appointed to succeed the initial members and members appointed thereafter shall be appointed for three-year terms. Members may succeed themselves.
All appointed board members shall avoid conflicts of interests and the appearance of impropriety.
Should instances arise when a conflict may be perceived, any individual who may benefit directly or indirectly from the North Carolina Partnership's disbursement of funds shall abstain from participating in any decision or deliberations by the North Carolina Partnership regarding the disbursement of funds.
All ex officio members are voting members. Each ex officio member may be represented by a designee. These designees shall be voting members. No members of the General Assembly shall serve as members.
The North Carolina Partnership may establish a nominating committee and, in making their recommendations of members to be appointed by the General Assembly or by the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Majority Leader of the Senate, the Majority Leader of the House of Representatives, the Minority Leader of the Senate, the Minority Leader of the House of Representatives, and the Governor shall consult with and consider the recommendations of this nominating committee.
The North Carolina Partnership may establish a policy on members' attendance, which policy shall include provisions for reporting absences of at least three meetings immediately to the appropriate appointing authority.
Members who miss more than three consecutive meetings without excuse or members who vacate their membership shall be replaced by the appropriate appointing authority, and the replacing member shall serve either until the General Assembly and the Governor can appoint a successor or until the replaced member's term expires, whichever is earlier.
The North Carolina Partnership shall establish a policy on membership of the local board, which policy shall include the requirement that all local board members, other than any member appointed because of a position held by that individual, be residents of the county or the partnership region they are representing. No member of the General Assembly shall serve as a member of a local board. Within these requirements for local board membership, the North Carolina Partnership shall allow local partnerships that are regional to have flexibility in the composition of their boards so that all counties in the region have adequate representation.
All appointed local board members shall avoid conflicts of interests and the appearance of impropriety.
Should instances arise when a conflict may be perceived, any individual who may benefit directly or indirectly from the partnership's disbursement of funds shall abstain from participating in any decision or deliberations by the partnership regarding the disbursement of funds.
(2) The North Carolina Partnership and the local partnerships shall agree to adopt procedures for its operations that are comparable to those of Article 33C of Chapter 143 of the General Statutes, the Open Meetings Law, and Chapter 132 of the General Statutes, the Public Records Law, and provide for enforcement by the Department.
(3) The North Carolina Partnership shall oversee the development and implementation of the local demonstration projects as they are selected and shall approve the ongoing plans, programs, and services developed and implemented by the local partnerships and hold the local partnerships accountable for the financial and programmatic integrity of the programs and services. The North Carolina Partnership may contract at the State level to obtain services or resources when the North Carolina Partnership determines it would be more efficient to do so.
In the event that the North Carolina Partnership determines that a local partnership is not fulfilling its mandate to provide programs and services designed to meet the developmental needs of children in order to prepare them to begin school healthy and ready to succeed and is not being accountable for the programmatic and fiscal integrity of its programs and services, the North Carolina Partnership may suspend all funds to the partnership until the partnership demonstrates that these defects are corrected.
Further, at its discretion, the North Carolina Partnership may assume the managerial responsibilities for the partnership's programs and services until the North Carolina Partnership determines that it is appropriate to return the programs and services to the local partnership.
(4) The North Carolina Partnership shall develop and implement a comprehensive standard fiscal accountability plan to ensure the fiscal integrity and accountability of State funds appropriated to it and to the local partnerships. The standard fiscal accountability plan shall, at a minimum, include a uniform, standardized system of accounting, internal controls, payroll, fidelity bonding, chart of accounts, and contract management and monitoring. The North Carolina Partnership may contract with outside firms to develop and implement the standard fiscal accountability plan. All local partnerships shall be required to participate in the standard fiscal accountability plan developed and adopted by the North Carolina Partnership pursuant to this subdivision.
(5) The North Carolina Partnership shall develop a regional accounting and contract management system which incorporates features of the required standard fiscal accountability plan described in subdivision (4) of subsection (a) of this section. All local partnerships shall participate in the regional accounting and contract management system.
(6) The North Carolina Partnership shall develop a formula for allocating direct services funds appropriated for this purpose to local partnerships.
(7) The North Carolina Partnership may adjust its allocations by up to ten percent (10%) on the basis of local partnerships' performance assessments. In determining whether to adjust its allocations to local partnerships, the North Carolina Partnership shall consider whether the local partnerships are meeting the outcome goals and objectives of the North Carolina Partnership and the goals and objectives set forth by the local partnerships in their approved annual program plans.
The North Carolina Partnership may use additional factors to determine whether to adjust the local partnerships' allocations. These additional factors shall be developed with input from the local partnerships and shall be communicated to the local partnerships when the additional factors are selected. These additional factors may include board involvement, family and community outreach, collaboration among public and private service agencies, and family involvement.
On the basis of performance assessments, local partnerships annually shall be rated `superior', `satisfactory', or `needs improvement'.
The North Carolina Partnership may contract with outside firms to conduct the performance assessments of local partnerships.
(8) The North Carolina Partnership shall establish a local partnership advisory committee comprised of 15 members. Eight of the members shall be chairs of local partnerships' board of directors, and seven shall be staff of local partnerships. Members shall be chosen by the Chair of the North Carolina Partnership from a pool of candidates nominated by their respective boards of directors. The local partnership advisory committee shall serve in an advisory capacity to the North Carolina Partnership and shall establish a schedule of regular meetings. Members shall be chosen from local partnerships on a rotating basis. The advisory committee shall annually elect a chair from among its members.
(9) The North Carolina Partnership shall report (i) quarterly to the Joint Legislative Commission on Governmental Operations and (ii) to the General Assembly and the Governor on the ongoing progress of all the local partnerships' work, including all details of the use to which the allocations were put, and on the continuing plans of the North Carolina Partnership and of the Department, together with legislative proposals, including proposals to implement the program statewide.
The North Carolina Partnership shall be subject to audit and review by the State Auditor under Article 5A of Chapter 147 of the General Statutes. The State Auditor shall conduct annual financial and compliance audits of the North Carolina Partnership.
The North Carolina Partnership shall require each local partnership to place in each of its contracts a statement that the contract is subject to monitoring by the local partnership and North Carolina Partnership, that contractors and subcontractors shall be fidelity bonded, unless the contractors or subcontractors receive less than one hundred thousand dollars ($100,000) or unless the contract is for child care subsidy services, that contractors and subcontractors are subject to audit oversight by the State Auditor, and that contractors and subcontractors shall be audited as required by G.S. 143-6.1.
Organizations subject to G.S. 159-34 shall be exempt from this requirement.
§ 143B-168.13. Implementation of program; duties of Department and Secretary.
The Department shall:
(1a) Develop and conduct a statewide needs and resource assessment every third year, beginning in the 1997-98 fiscal year. This needs assessment shall be conducted in cooperation with the North Carolina Partnership and with the local partnerships. The Department may contract with an independent firm to conduct the needs assessment. The needs assessment shall be conducted in a way which enables the Department and the North Carolina Partnership to review, and revise as necessary, the total program cost estimate and methodology. The data and findings of this needs assessment shall form the basis for annual program plans developed by local partnerships and approved by the North Carolina Partnership. A report of the findings of the needs assessment shall be presented to the General Assembly prior to April 1, 1999, and every three years after that date.
(2a) Develop and maintain an automated, publicly accessible database of all regulated child care programs.
(3) Repealed by Session Laws 1997, c. 443, s. 11.55(m).
(4) Adopt, in cooperation with the North Carolina Partnership, any rules necessary to implement this Part, including rules to ensure that State leave policy is not applied to the North Carolina Partnership and the local partnerships. In order to allow local partnerships to focus on the development of long-range plans in their initial year of funding, the Department may adopt rules that limit the categories of direct services for young children and their families for which funds are made available during the initial year.
(5) Repealed by Session Laws 1996, Second Extra Session, c. 18, s. 24.29(c).
"(6) Annually update its funding formula, in collaboration with the North Carolina Partnership for Children Inc., using the most recent data available. These amounts shall serve as the basis for determining `full funding' amounts for each local partnership."
§ 143B-168.14. Local partnerships; conditions.
(a) In order to receive State funds, the following conditions shall be met:
(1) Each local partnership shall develop a comprehensive, collaborative, long-range plan of services to children and families in the service-delivery area. No existing local, private, nonprofit 501(c)(3) organization, other than one established on or after July 1, 1993, and that meets the guidelines for local partnerships as established under this Part, shall be eligible to apply to serve as the local partnership for the purpose of this Part. The Board of the North Carolina Partnership may authorize exceptions to this eligibility requirement.
(2) Each local partnership shall agree to adopt procedures for its operations that are comparable to those of Article 33C of Chapter 143 of the General Statutes, the Open Meetings Law, and Chapter 132 of the General Statutes, the Public Records Law, and provide for enforcement by the Department.
(3) Each local partnership shall adopt procedures to ensure that all personnel who provide services to young children and their families under this Part know and understand their responsibility to report suspected child abuse, neglect, or dependency, as defined in G.S. 7A-517.
(4) Each local partnership shall participate in the uniform, standard fiscal accountability plan developed and adopted by the North Carolina Partnership.
(b) Each local partnership shall be subject to audit and review by the State Auditor under Article 5A of Chapter 147 of the General Statutes. The State Auditor shall conduct annual financial and compliance audits of the local partnerships.
§ 143B-168.15. Use of State funds.
(a) State funds allocated to local projects for services to children and families shall be used to meetassessed needs, expand coverage, and improve the quality of these services. The local plan shalladdress the assessed needs of all children to the extent feasible. It is the intent of the General Assembly that the needs of both young children below poverty who remain in the home, as well as the needs of young children below poverty who require services beyond those offered in child care settings, be addressed,. Therefore, as local partnerships address the assessed needs of all children, they should devote an appropriate amount of their State allocations, considering these needs and other available resources, to meet the needs of children below poverty and their families.
(b) Depending on local, regional, or statewide needs, funds may be used to support activities and services that shall be made available and accessible to providers, children, and families on a voluntary basis. Of the total funds allocated to all local partnerships for direct services, seventy percent (70%) of the funds spent in each year shall be used in child care-related activities and early childhood education programs that improve access to child care and early childhood education services, develop new child care and early childhood education services, and improve the quality of child care and early childhood education services in all settings.
(c) Long-term plans for local projects that do not receive their full allocation in the first year, other thanthose selected in 1993, should consider how to meet the assessed needs of low-income children andfamilies within their neighborhoods or communities. These plans also should reflect a process to meetthese needs as additional allocations and other resources are received.(d) State funds designated for start-up and related activities may be used for capital expenses or tosupport activities and services for children, families, and providers. State funds designated to supportdirect services for children, families, and providers shall not be used for major capital expenses unlessthe North Carolina Partnership approves this use of State funds based upon a finding that a local partnership has demonstrated that (i) this use is a clear priority need for the local plan, (ii) it isnecessary to enable the local partnership to provide services and activities to underserved children andfamilies, and (iii) the local partnership will not otherwise be able to meet this priority need by using Stateor federal funds available to that local partnership. The funds approved for capital projects in any twoconsecutive fiscal years may not exceed ten percent (10%) of the total funds for direct services allocatedto a local partnership in those two consecutive fiscal years.
(e) State funds allocated to local partnerships shall not supplant current expenditures by counties onbehalf of young children and their families, and maintenance of current efforts on behalf of these childrenand families shall be sustained. State funds shall not be applied without the Secretary's approval whereState or federal funding sources, such as Head Start, are available or could be made available to thatcounty.
(f) Local partnerships may carry over funds from one fiscal year to the next, subject to the following conditions:
(1) Local partnerships in their first year of receiving direct services funding may, on a one-time basis only, carry over any unspent funds to the subsequent fiscal year.
(2) Any local partnership may carry over any unspent funds to the subsequent fiscal year, subject to the imitation that funds carried over may not exceed the increase in funding the local partnership received during the current fiscal year over the prior fiscal year.
"(g) Not less than thirty percent (30%) of the funds spend in each year of each local partnership's direct services allocation shall be used to expand child care subsidies. To the extent practicable, these funds shall be used to enhance the affordability, availability, and quality of child care services as described in this section. The North Carolina Partnership may increase this percentage requirement up to a maximum of fifty percent (50%) when, based upon a significant local waiting list for subsidized child care the North Carolina Partnership determines a higher percentage is justified."
§ 143B-168.16. Home-centered services; consent.
No home-centered services including home visits or in-home parenting training shall be allowed underthis Part unless the written, informed consent of the participating parents authorizing the home-centeredservices is first obtained by the local partnership, educational institution, local school administrativeunit, private school, not-for-profit organization, governmental agency, or other entity that is conductingthe parenting program. The participating parents may revoke at any time their consent for thehome-centered services.
The consent form shall contain a clear description of the program including (i) the activities andinformation to be provided by the program during the home visits, (ii) the number of expected homevisits, (iii) any responsibilities of the parents, (iv) the fact, if applicable, that a record will be made andmaintained on the home visits, (v) the fact that the parents may revoke at any time the consent, and (vi)any other information as may be necessary to convey to the parents a clear understanding of theprogram.
Parents at all times shall have access to any record maintained on home-centered services provided to their family and may place in that record a written response to any information with which they disagree that is in the record.
(b) Session Law 1999-237, Section 11.48
Section 11.48.(b) The General Assembly finds that it is essential to continue developing comprehensive programs that provide high quality early childhood education and development serviceslocally for children and their families. The General Assembly intends to expand the Early ChildhoodEducation and Development Initiatives Program (the `Program') in a manner which ensures qualityassurance and performance-based accountability for the Program.
(c) This section was repealed
(d) The Joint Legislative Commission on Governmental Operations shall, consistent with current law, continue to be the legislative oversight body for the Program. The President Pro Tempore of the Senateand the Speaker of the House of Representatives may appoint a subcommittee of the Joint LegislativeCommission on Governmental Operations to carry out this function. This subcommittee may conduct allinitial reviews of plans, reports, and budgets relating to the Program and shall make recommendationsto the Joint Legislative Commission on Governmental Operations.
(e) Administrative costs shall be equivalent to, on an average statewide basis for all local partnerships,not more than eight percent (8%) of the total statewide allocation to all local partnerships. What countsas administrative costs shall be as defined in the Smart Start Performance Audit.
(f) Any local partnership, before receiving State funds, shall be required annually to submit a plan andbudget for State funds for appropriate programs to the North Carolina Partnership for Children, Inc., andthe Joint Legislative Commission on Governmental Operations. State funds to implement the programsshall not be allocated to a local partnership until the program plan is approved by the North CarolinaPartnership for Children, Inc.
(g) The North Carolina Partnership for Children, Inc., and all local partnerships shall use competitive bidding practices in contracting for goods and services on contract amounts as follows:
(1)For amounts of five thousand dollars ($5,000) or less, the procedures specified by a written policy to be developed by the Board of Directors of the North Carolina Partnership for Children, Inc.;
(2) For amounts greater than five thousand dollars ($5,000) but less than fifteen thousand dollars ($15,000), three written quotes
(3) For amounts of fifteen thousand dollars ($15,000) or more but less than forty thousand dollars ($40,000), a request for proposal process; and
(4) For amounts of forty thousand dollars ($40,000) or more, request for proposal process and advertising in a major newspaper.
(h) This section was repealed
(i) The North Carolina Partnership for Children, Inc., and all local partnerships shall, in the aggregate, be required to match no less than fifty percent (50%) of the total amount budgeted for the Program in each fiscal year of the biennium as follows: contributions of cash equal to at least fifteen percent (15%) and in-kind donated resources equal to no more than five percent (5%) for a total match requirement of twenty percent (20%) for each fiscal year. The North Carolina Partnership for Children Inc. may carry forward any amount in excess of the required match for a fiscal year in order to meet the match requirement of the succeeding fiscal year. Only in-kind contributions that are quantifiable shall be applied to the in-kind match requirement. Volunteer services may be treated as an in-kind contribution for the purpose of the match requirement of this subsection. Volunteer services that qualify as professional services shall be valued at the fair market value of those services. All other volunteer service hours shall be valued at the statewide average wage rate as calculated from data compiled by the Employment Security Commission in the Employment and Wages in North Carolina Annual Report for the most recent period for which data are available. Expenses, including both those paid by cash and in-kind contributions, incurred by other participating non-State entities contracting with the North Carolina Partnership for Children or the local partnerships, also may be considered resources available to meet the required private match. In order to qualify to meet the required private match, the expenses shall:
(1) Be verifiable from the contractor's records;
(2) If in-kind, other than volunteer services, be quantifiable in accordance with generally accepted accounting principles for nonprofit organizations;
(3) Not include expenses funded by State funds;
(4) Be supplemental to and not supplant preexisting resources for related program activities;
(5) Be incurred as a direct result of the Early Childhood Initiatives Program and be necessary and reasonable for the proper and efficient accomplishment of the Program's objectives;
(6) Be otherwise allowable under federal or State law;
(7) Be required and described in the contractual agreements approved by the North Carolina Partnership for Children or the local partnership; and
(8) Be reported to the North Carolina Partnership for Children or the local partnership by the contractor in the same manner as reimbursable expenses.
The North Carolina Partnership shall establish uniform guidelines and reporting format for local partnerships to document the qualifying expenses occurring at the contractor level. Local partnerships shall monitor qualifying expenses to ensure they have occurred and meet the requirements prescribed in this subsection.
Failure to obtain a twenty percent (20%) match by June 30 of each fiscal year shall result in a dollar-for-dollar reduction in the appropriation for the Program for a subsequent fiscal year. The North Carolina Partnership for Children, Inc., shall be responsible for compiling information on the private cash and in-kind contributions into a report that is submitted to the Joint Legislative Commission on Governmental Operations in a format that allows verification by the Department of Revenue. The same match requirements shall apply to any expansion funds appropriated by the General Assembly.
(j) Counties participating in the Program may use the county's allocation of State and federal child care funds to subsidize child care according to the county's Early Childhood Education and Development Initiatives Plan as approved by the North Carolina Partnership for Children, Inc. The use of federal funds shall be consistent with the appropriate federal regulations. Childcare providers shall, at a minimum, comply with the applicable requirements for State licensure pursuant to Article 7 of Chapter 110 of the General Statutes, with other applicable requirements of State law or rule, including rules adopted for nonlicensed child care by the Social Services Commission, and with applicable federal regulations.
(k) The Department of Health and Human Services shall continue to implement the performance-based evaluation system.
(l) The Frank Porter Graham Child Development Center shall continue its evaluation of the Program. Notwithstanding any policy to the contrary, the Frank Porter Graham Child Development Center may use any method legally available to it to track children who are participating or who have participated in any Early Childhood Education and Development Initiative in order to carry out its ongoing evaluation of the Program.
(m) There is allocated from the funds appropriated to the Department of Health and Human Services, Division of Child Development, in this act, the sum of fifty-nine million five hundred thousand dollars ($59,500,000) for the 1999-2000 fiscal year and the sum of one hundred twenty two million eight hundred seventy-eight thousand seventy-six dollars ($122,878,076) for the 2000-2001 fiscal year to be used as follows:
(1) The sum of fifty-eight million dollars ($58,000,000) in the 1999-2000 fiscal year and sum of one hundred twenty-one million four hundred thirteen thousand seven hundred twenty-five dollars ($121,413,725) in the 2000- 2001 fiscal year shall be used to administer and deliver services in all 100 counties. These funds may be used as financial incentives to encourage regionalization at the local level and to complete development of contracting and accounting systems at the local level. Any funds used to encourage regionalization or to complete development of contracting and accounting systems at the local level shall not be included in computations affecting the administrative cost limitations under subsection (e) of this section.
(2) The North Carolina Partnership for Children, Inc., may use the sum of one million five hundred thousand dollars ($1,500,000) in the 1999-2000 fiscal year and the sum of five hundred thousand dollars ($500,000) in the 2000-2001 fiscal year to assist local partnerships in their efforts to develop local collaboration. It is the intent of the of the General Assembly that these funds be nonrecurring.
(3)The North Carolina Partnership for Children Inc., shall receive the sum of nine hundred sixty-four thousand three hundred fifty-one dollars ($964,351) in the 2000-2001 fiscal year for State-level administration of the Program.
The General Assembly requests that the Governor fully fund the Program in the continuation budget for the 2001-2003 fiscal biennium at the level recommended by the Governor in the 1999-2001 fiscal biennium.
(n) Of the funds appropriated to the Department of Health and Human Services for the Program for the 1999-2001 biennium the Frank Porter Graham Child Development Center shall receive the sum of one million sixty-five thousand seven hundred fifty dollars ($1,065,750) in the 2000-2001 fiscal year.