NC H1055

Removes provider endorsement authority from Local Management Entities (LMEs), eliminating their ability to endorse or deny endorsement to mental health, developmental disabilities, and substance abuse service providers.

Modifies G.S. 122C-114 to require LME monitoring of providers without the endorsement function.

Eliminates the specific grounds for LME removal of provider endorsement, including failure to meet quality criteria, document services, provide staff training, or allow LME access.

Clarifies that LMEs must still refer violations of licensure rules to the Division of Health Service Regulation and suspected abuse or neglect to appropriate child and adult protective services.

Changes the definition of "contractor" in appeals procedures to exclude providers whose endorsement applications have been denied by LMEs, effective upon enactment.