NORTH CAROLINA GENERAL ASSEMBLY
1967 SESSION

CHAPTER 958
HOUSE BILL 560

AN ACT TO ADD G.S. 143-118.1 AFFIRMING THE AUTHORITY OF THE BOARD OF MENTAL HEALTH TO COMPROMISE STATE MENTAL HOSPITAL ACCOUNTS.

The General Assembly of North Carolina do enact:

Section 1.  Article 7 of Chapter 143 of the General Statutes is amended by adding a new Section following G.S. 143-118 to be designated G.S. 143-118.1 to read as follows:
"Governing Board May Compromise Account. The respective boards of trustees or directors of each of said institutions, by whatever name they may be called, or the North Carolina Board of Mental Health or the agent of these said boards, to whom this power has been delegated by resolution of the respective boards, are hereby empowered to enter into contracts of compromise of accounts owing the said institutions for past, present or future care at the said institutions, including but not limited to the authority to enter into a contract to charge nothing, which contract shall be binding on the respective institution under the terms and for the period specified in such contract. The rate of charge fixed by such contract shall be paid on a monthly basis, or in lump sum for those amounts already accrued for the duration of the contract; said rates or decision to make no charge shall be determined in the discretion of the board or their agents by the ability to pay of the patient or those responsible in law for his support. In any action by any of the said institutions for the recovery of the cost of the care, maintenance and treatment of any inmate, a verified and itemized statement of account accompanied by a contract entered into pursuant to this Section shall have the same effect in instituting a prima facie case as the statement of account filed pursuant to G.S. 143-118. This Section shall not be construed as mandatory and if such contract is not entered into or shall terminate, or if the obligor shall default in the payment of the said compromise amount or any installment thereof, then the full monthly charge shall accrue on the patient's account."
Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 3.  This Act shall be in full force and effect from and after its ratification.
In the General Assembly read three times and ratified, this the 27th day of June, 1967.