SB 527 North Carolina Senate · 2025-2026 Session

Modify Laws Applicable to LME/MCOs.

Senate Bill 527 modifies laws applicable to Local Management Entities/Managed Care Organizations (LME/MCOs), which oversee behavioral health and intellectual/developmental disability services. It grants LME/MCOs greater flexibility in managing their personnel by largely exempting their employees from most provisions of the State Human Resources Act. Specifically, the bill removes salary caps tied to county plans and allows LME/MCOs to establish their own personnel systems, subject to approval by the State Human Resources Commission and county commissioners. Additionally, it provides flexibility for LME/MCOs operating certain tailored health plans regarding contracting with specific licensed entities after an initial period. These changes primarily affect LME/MCO employees and their operational autonomy.

Bill status passed 3 of 5 stages cleared

Introduction

Mar 2025

Committee Review

Apr 2025

Senate Passage

Apr 2025

House Passage

Governor

Introduced Mar 25, 2025 Last action Apr 17, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Edition 1 → Edition 2 · 5 edits

MODERATE

This bill modifies how local management entities and managed care organizations operate in North Carolina, particularly regarding personnel administration and salary rules. The changes expand exemptions from state personnel regulations for certain area authority employees and establish new definitions for senior management positions. These modifications aim to provide greater flexibility in compensation structures while maintaining oversight for senior leadership roles.

Scope change

The bill expands the scope of personnel exemptions to include area authority senior management employees, while maintaining requirements for other employees. It also clarifies applicability dates for different sections of the law.

DEFINITION

Added a new definition for 'area authority senior management' that includes specific executive roles like CEO, CFO, COO, and other key positions designated under G.S. 122C-121.1.

REQUIREMENT

Modified salary rules to distinguish between area authority senior management employees and other employees, with different compliance requirements for each group under Chapter 126 of the General Statutes.

ELIGIBILITY

Removed the previous blanket exemption for all area authority employees, replacing it with a more targeted approach that exempts only senior management from certain personnel requirements while keeping other employees under standard rules.

TIMELINE

Added specific effective dates, including July 1, 2025 for salary plan changes, to provide clarity on when new requirements apply.

ENFORCEMENT

Modified oversight requirements to ensure salary adjustments for senior management still require approval from the Director of the Office of State Human Resources, maintaining accountability for higher compensation decisions.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 17, 2025

Committee

Re-ref Com On Rules and Operations of the Senate

upper

Apr 17, 2025

Upper · Passed

Com Substitute Adopted

upper

Apr 17, 2025

Upper · Passed

Reptd Fav Com Substitute

upper

Apr 1, 2025

Committee

Re-ref to Health Care. If fav, re-ref to Rules and Operations of the Senate

upper

Mar 26, 2025

Committee

Ref To Com On Rules and Operations of the Senate

upper

Mar 25, 2025

Introduced

Filed

upper

0 primary · 1 co-sponsor