SB 527 — Modify Laws Applicable to LME/MCOs.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 21 SENATE BILL 527 Health Care Committee Substitute Adopted 4/17/25 Short Title:

Senator Burgin (Primary Sponsor).

Rules and Operations of the Senate March 26, 2025 A BILL TO BE ENTITLED AN ACT TO MODIFY LAWS APPLICABLE TO LOCAL MANAGEMENT ENTITIES/MANAGED CARE ORGANIZATIONS.

(a) Employees under the direct supervision of the area director are employees of the area authority.

(b)For As used in this section, the termpurpose "areaof authoritypersonnel senioradministration, management"Chapter means126 theof area director and the employeesGeneral whoStatutes areapplies keyunless personnelotherwise designatedprovided underin G.S.this Article.

122C-121.1 in the following roles, or substantially equivalent positions:

chief executive officer, chief financial officer, chief operating officer, chief compliance officer, chief information security officer, and chief risk officer.

(c) The area authority shall establish a salary plan that sets the salaries for employees of the area authority.

The salary plan for area authority senior management employees shall be in compliance with Chapter 126 of the General Statutes.

(d) For the purpose of personnel administration, Chapter 126 of the General Statutes applies unless otherwise provided in this Article.

Article or in Chapter 126 of the General Statutes.

126-9(b), an area authority senior management employee of an area authority may be paid a salary that is in excess of the salary ranges established by the State Human Resources Commission.

Any salary for an area authority senior management employee that is higher than the maximum of the applicable salary range shall be supported by documentation of comparable salaries in comparable operations within the region and shall also include the specific amount the board proposes to pay the employee.

The area board shall not authorize any salary adjustment for an area authority senior management employee that is above the normal allowable salary range without obtaining prior approval from the Director of the Office of State Human Resources." SECTION 1.(b) G.S.

*S527-v-2*…." GeneralSECTION Assembly1.(c) OfSubsection North(a) Carolinaof Sessionthis 2025section …."applies SECTIONto 1.(c)employees G.S.of area authorities who are hired on or after the date this section becomes law.

122C-121Subsection reads(b) asof rewritten:this section applies to salary plans established on or after the date this section becomes law.

"§SECTION 122C-121.2.(a) G.S.

Area126-5(a)(2)a. director.

…is (a1)repealed. The area board shall establish the area director's salaryunder Article 3 of Chapter 126 of the General Statutes.

NotwithstandingSECTION 2.(b) G.S.

126-9(b), an area director may be paid a salary that is in excess of the salary ranges established by the State Human Resources Commission.

Any salary that is higher than the maximum of the applicable salary range shall be supported by documentation of comparable salaries in comparable operations within the region and shall also include the specific amount the board proposes to pay the director.

The area board shall not authorizeanysalaryadjustmentthatisabovethenormalallowablesalaryrangewithoutobtaining prior approval from the Director of the Office of State Human Resources.Commission, as provided in G.S.

122C-154.

…." SECTION 1.(d) This section applies to salary plans beginning on July 1, 2025.

SECTION 2.

G.S.

(a)… (c2) This Chapter appliesdoes not apply to allany of the following:

(1)… All(6) StateEmployees employeesof notan exemptedarea byauthority thisas section.defined under G.S.

(2)122C-3(1). All employees of the following local entities:

a.*S527-v-1* General Assembly Of North Carolina Session 2025 …." SECTION 2.(c) This section applies to employees of area mental health, developmental disabilities, and substance use authorities, defined as area authorities under G.S.

Area122C-3, mentalhired health,after developmentalthe disabilities,date andthis substanceact abusebecomes authorities,law. except as otherwise provided in Chapter 122C of the General Statutes.

…SECTION (4)3. Employees of an area authority, as defined under G.S.

122C-3, except as otherwise provided in Chapter 122C of the General Statutes or otherwise exempted by this section.

… (c11) The following are exempt from (i) the classification and compensation rules established by the State Human Resources Commission pursuant to G.S.

126-4(1) through (4);

(ii) G.S.

126-4(5) only as it applies to hours and days of work, vacation, and sick leave;

(iii) G.S.

126-4(6) only as it applies to promotion and transfer;