GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	3 

SENATE BILL 1309
Appropriations Committee Substitute Adopted With Amendments 1,2,&3 8/2/89
Appropriations Senate Committee Substitute #2 Adopted
With Amendment #1 8/3/89

Short Title:  Budget Reconciliation Act.	(Public)
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Sponsors:
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Referred to:  
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May 17, 1989

A BILL TO BE ENTITLED
AN ACT TO MAKE MISCELLANEOUS CHANGES TO THE STATE BUDGET FOR THE 1989-90 FISCAL YEAR AND FOR PAST FISCAL YEARS.
The General Assembly of North Carolina enacts:
Section 1.  From the funds appropriated to the Office of State Budget and Management in Section 4 of the Capital Improvement Appropriations Act of 1989 (Senate Bill 1042, Second Edition) to the Reserve for Repairs and Renovations, $13,903,890 is allocated as follows:
	1989-90
ADMINISTRATIVE OFFICE OF THE COURTS
1.	To provide funds to continue the contract for a special drug trafficking prosecution program in the 13th prosecutorial district. $   47,500
DEPARTMENT OF AGRICULTURE
1.	Division of Marketing - Grant-in-aid for a poultry marketing sales promotion. 25,000
	State Aid
DEPARTMENT OF COMMERCE
1.	Industrial Development Fund - Funds to continue assisting economically distressed counties. 3,500,000
	State Aid
2.	N.C. Housing Finance Agency - Provide reserve to be used for the Housing Partnership Program. 2,000,000
	State Aid
3.	Antique Village of Wilson County, Inc. - Matching funds for capital improvements.  Dollar-for-dollar match. 50,000
	State Aid
DEPARTMENT OF COMMUNITY COLLEGES
1.	Central Piedmont Community College - Funds to complete the third floor addition to the Optical Disc facility. 600,000
	Capital Improvements

2.	Wake Technical Community College - Funds to purchase equipment for the nursing program. 50,000
DEPARTMENT OF CULTURAL RESOURCES
1.	Unconditional Grant-in-Aid -  Grant-in-aid to complete renovations of various historic buildings on the campus of the Central Children's Home, Inc., in Oxford. 129,730
	State Aid
2.	Unconditional Grant-in-Aid -  Grant-in-aid to complete the second phase of the restoration of Biddle Memorial Hall (a national historic property) at Johnson C. Smith University in Charlotte. 400,000
	State Aid
3.	Unconditional Grant-in-Aid - Grant-in-aid to the Garden Clubs of North Carolina, Inc., for the Elizabethan Gardens. 50,000
	State Aid
5.	Funds to complete the construction of the new Thomas Wolfe Memorial. 75,000
	Capital Improvements
6.	Grant-in-Aid to Arts - N.C. Shakespeare Festival - Grant for touring metropolitan and rural communities throughout the State to present major Shakespearean productions, to tour high schools and support operating expense. 75,000
	State Aid
7.	Grant-in-Aid to Arts - Vagabond School of Drama - Grant-in-aid for support of the official State Theater of N.C. 25,000
	State Aid
8.	Arts Council - Increase State
aid to the arts through grants
made by the Council.	550,000
	State Aid
DEPARTMENT OF HUMAN RESOURCES
1.	Division of Health Services -
Grant-in-aid for United Cerebral Palsy group homes and developmental centers. 200,000
	State Aid
2.	Western Carolina Center
a.	Funds to construct an addition to the wheelchair shop. 105,160
		Capital Improvements
b.	To construct a roof over the outdoor recreation center. 20,000
		Capital Improvements
c.	To replace the air conditioning cooling towers.  Funds will match an Exxon grant dollar-for-dollar. 200,000
		Capital Improvements
SECRETARY OF STATE
1.	Funds to implement the revised Business Corporations Act.                      100,000
DEPARTMENT OF INSURANCE
1.	Funds to implement the monitoring required by SB 519 related to continuing care facilities. 75,000
2.	Funds to implement SB 446 which requires a rewrite of the N.C. Medicare Supplement Insurance Minimum Standards Act of 1981 to comply with new federal law. 50,000
DEPARTMENT OF JUSTICE
1.	General Administration - Grant-in-aid for law enforcement at the public access and camping areas during peak use time at Jordan Lake and Kerr Lake.
		Chatham County   25,000
		Vance County     25,000
		State Aid
DEPARTMENT OF NATURAL RESOURCES AND COMMUNITY DEVELOPMENT
1.	Funds to assist Avery County in developing a Growth Management Strategy. 37,500
		State Aid
2.	Funds to Division of Parks and Recreation for the purpose of establishing a residential training center to improve the professional skills and capabilities of State Park superintendents, rangers, and support staff. 250,000
OFFICE OF STATE BUDGET AND MANAGEMENT
1A.	Marine Research and Development Crescent - To provide economic development in southeastern North Carolina to assist marine related activities while maintaining the region's fragile ecology. 65,000
		State Aid
1B.	Neuse River Development Authority - To promote economic development in the nine county region of the Eastern North Carolina Tomorrow Program - for aquaculture. 33,000
		State Aid

2.	Brevard Music Center, Inc. - Grant-in Aid.	50,000
		State Aid
3.	Schiele Museum of Natural History and Planetarium, Inc., in Gaston County - Grant-in-Aid. 50,000
		State Aid
4.	Duplin Outdoor Drama Society, Inc., for the production of "The Liberty Cart". 35,000
		State Aid
5.	Snow Camp Historical Drama Society, Inc., for the production of "Sword of Peace". 50,000
		State Aid
6.	The Eastern Music Festival, Inc., in Guilford County - Grant-in-Aid.   25,000
		State Aid
7.	Old Salem, Inc., in Forsyth County - Grant-in Aid.	50,000
		State Aid
8.	The Greenville Museum of Art, Inc., to match funds for construction of a new regional facility. 218,000
		State Aid
9.	Caswell County Commissioners to extend water and sewer lines along N.C. Highway 86 for development of this industrial corridor. 500,000
		State Aid
10.	Upper Cleveland Water District - To expand water system and extend water lines to Alzheimer's facility. 50,000
		State Aid
11.	Autism Foundation of N.C. Inc., for development of a permanent year-round camp and conference center for autistic adults and children. 250,000
		State Aid
12.	Fairgrounds Rural Fire Department, Inc., in Wake County to match funds for construction of a new building to be used to continue fire protection to State-owned properties. 140,000
		State Aid
13.	Town of Dillsboro for development of an additional water source for the town and Jackson County (4.25 to 1 match). 43,000
		State Aid
14.	Rural Day Care Association of Northeastern N.C. - To provide day care for senior citizens. 100,000
		State Aid
15.	Thelonious Monk Institute of Jazz - Grant-in-Aid for capital improvements. 250,000
		State Aid
16.	Grant-in-Aid to the Roanoke Voyages and Corridor Commission for the celebration of the birthday of Eleanor Dare, first child born of English parents, to be held at the Elizabeth II State historic site. 25,000
		State Aid
17.	Autistic Society of North Carolina - To continue grant for operations and stipends for the autistic children's and adults' camp. 262,000
		State Aid
18.	Robeson Historical Drama, Inc. - To assist funding the outdoor drama "Strike At The Wind". 35,000
		State Aid
19.	Gaston County Museum of Art and History in Gaston County - Grant-in-aid. 50,000
		State Aid
DEPARTMENT OF PUBLIC INSTRUCTION
1.	Funds for contracted personal services for new and innovative projects and for research and development. 250,000
DEPARTMENT OF TRANSPORTATION
1.	Matching funds to establish a Viet Nam Veterans Memorial Park on Interstate 85. 100,000
UNIVERSITY OF NORTH CAROLINA -
BOARD OF GOVERNORS
1.	Planning Funds For:	1,158,000
		Capital Improvements
a.	N.C. Agricultural and Technical University - School of Technology Classroom/Lab Building. 
b.	UNC - Greensboro - Music Building.
c.	N.C. Central University - Dorm Renovations.
d.	Winston-Salem State University - Student Services Complex.
e.	N.C. Central University - Conversion of Women's Gym to Data Processing Center.
2.	UNC - Asheville - Funds for continued development of the N.C. Arboretum. 1,000,000
		Capital Improvements
3.	Grant to the Lineberger Cancer Research Center for planning of facility addition. 400,000
4.	East Carolina University - Continued support to match a grant to be used for establishing the North Carolina Geographic Alliance Network Program. 50,000
		    State Aid
		             
TOTAL ALLOCATIONS	$13,903,890.

Sec. 2.  There is appropriated from the General Fund to the Office of State Budget and Management the sum of $2,300,000 for the 1989-90 fiscal year and the sum of $7,800,000 for the 1990-91 fiscal year for a Reserve for Repairs and Renovations. 

Requested by:   Senator Walker
––-LOCATION OF MONUMENT CONSTRUCTED BY VETERANS' MEMORIAL COMMISSION NOT EXEMPT FROM CERTAIN STATUTES
Sec. 3.  G.S. 143B-133.1(b) reads as rewritten:
"(b)	The Commission may, in its discretion, hire any person or persons to design, construct, and erect the monument, and shall choose its location on the Capitol Grounds, in accordance with the review procedures of the North Carolina Historical Commission as set forth in Chapter 100 of the General Statutes, and without regard to Article 8 of Chapter 143 of the General Statutes, G.S. 143B-373, or G.S. 147-12(12)."

Requested by:  Senator Simpson
––-ARTS COUNCIL FUNDS LIMITATION
Sec. 4.  No State funds appropriated for the 1989-90 fiscal year or for the 1990-91 fiscal year to the Department of Cultural Resources for the Arts Council may be allocated for any project that denigrates any religion or religious symbol.

Requested by:   Senator Basnight
––-HYDE COUNTY COMMUNICATIONS BUILDING
Sec. 5.  The funds designated in the Conference Report dated July 7, 1988, for Chapter 1086 of the 1987 Session Laws (1988 Session), for the Hyde County Sheriff's Department for construction of a communications tower on Ocracoke Island may also be used to construct a communications building.

Requested by:   Senator Parnell
––-PEMBROKE LIBRARY RENOVATION FUNDS REDIRECTED FOR MUNICIPAL COMPLEX CONSTRUCTION
Sec. 6.  The portion of Section 1 of Chapter 1094 of the 1987 Session Laws (1988 Session) referring to Senate Bill 1742 reads as rewritten:
"S1742  PEMBROKE MUNICIPAL COMPLEX FUNDS.
Fifty thousand dollars ($50,000) to the Town of Pembroke in Robeson County for capital costs for a municipal complex."

Requested by:   Senators Johnson of Wake and Royall
––-REGIONAL PUBLIC TRANSPORTATION AUTHORITY FUNDING
Sec. 7.  A Regional Public Transportation Authority created pursuant to Article 26 of Chapter 160A of the General Statutes may, in addition to all other powers granted by G.S. 160A-610, and in furtherance of G.S. 160A-613, apply for a grant from the Department of Transportation to be funded from the funds for public transportation received from the North Carolina Highway Trust Fund if those funds are available.  The Department of Transportation may allocate to a regional public transportation authority any funds appropriated for public transportation.

Requested by:   Senator Ward
––-IMPLEMENTATION OF RECOMMENDATION OF THE TASK FORCE ON THE PREPARATION OF TEACHERS
Sec. 8. (a)	The State Board of Education and the Board of Governors of The University of North Carolina shall implement the objectives of the plan for the preparation of teachers as identified in "The Education of North Carolina Teachers”report and in the "Second Annual Report of the Joint Committee on Teacher Education of the Board of Governors of The University of North Carolina and the State Board of Education".
(b)	Of the funds appropriated to the Department of Public Education in Section 3 of this act, the sum of $1,080,000 for the 1989-90 fiscal year, and the sum of $2,000,000 for the 1990-91 fiscal year shall be used by the State Board of Education to carry out the following program components as identified in the "Second Annual Report on the Joint Committee on Teacher Education of the Board of Governors of The University of North Carolina and the State Board of Education" :
1989-90	1990-91
Reform of Teacher Education Programs	$  50,000	$  50,000
Quality Assurance Program Improvement	5,000	5,000
Teacher Certification and Program
   Approval	850,000	970,000
Professional Education	125,000	925,000
Incentive Programs for Teachers	50,000	50,000

Total	$1,080,000	$2,000,000

(c)	Of the funds appropriated to the Board of Governors of The University of North Carolina in Section 3 of this act, the sum of $1,500,000 for the 1989-90 fiscal year, and the sum of $2,504,089 for the 1990-91 fiscal year shall be used to carry out the following program components as identified in the "Second Annual Report of the Joint Committee on Teacher Education of the Board of Governors of The University of North Carolina and the State Board of Education" :
1989-90	1990-91
Reform of Teacher Education Programs	$  424,000	$  700,000
Quality Assurance Program Improvement	536,000	884,087
Professional Education	50,000
Revitalization of Teacher Education
Faculty	540,000	870,000

Total	$1,500,000	$2,504,089

(d)	The State Board of Education and the Board of Governors of The University of North Carolina shall, through the Joint Committee on Teacher Education, continue to monitor and evaluate the implementation of the programs for the improvement of the preparation of teachers as set forth in the report, "The Education of North Carolina Teachers", and in the "Second Annual Report on the Joint Committee on Teacher Education of the Board of Governors of The University of North Carolina and the State Board of Education".

Requested by:   Senator Sherron
––-DEPARTMENT OF TRANSPORTATION TO REPAIR AND MAINTAIN THE STATE PARKS ROAD SYSTEM
Sec. 9.  (a)	 G.S. 136-44.2 reads as rewritten:
"§ 136-44.2. Budget and appropriations.
The Director of the Budget shall include in the ‘Budget Appropriations Bill' an enumeration of the purposes or objects of the proposed expenditures for each of the construction and maintenance programs for that budget period for the State primary, secondary, urban, and State parks road systems. The State primary system shall include all portions of the State highway system located outside municipal corporate limits which are designated by N.C., U.S. or Interstate numbers. The State secondary system shall include all of the State highway system located outside municipal corporate limits that is not a part of the State primary system. The State urban system shall include all portions of the State highway system located within municipal corporate limits. The State parks system shall include all State parks roads which are not also part of the State highway system.
All construction and maintenance programs for which appropriations are requested shall be enumerated separately in the budget. Programs that are entirely State funded shall be listed separately from those programs involving the use of federal-aid funds. Proposed appropriations of State matching funds for each of the federal-aid construction programs shall be enumerated separately as well as the federal-aid funds anticipated for each program in order that the total construction requirements for each program may be provided for in the budget. Also, proposed State matching funds for the highway planning and research program shall be included separately along with the anticipated federal-aid funds for that purpose.
Other program categories for which appropriations are requested, such as, but not limited to, maintenance, channelization and traffic control, bridge maintenance, public service and access road construction, and ferry operations shall be enumerated in the budget.
The Department of Transportation shall have all powers necessary to comply fully with provisions of present and future federal-aid acts. No federally eligible construction project may be funded entirely with State funds unless the Department of Transportation has first consulted with the Joint Legislative Commission on Governmental Operations.  For purposes of this section, ‘federally eligible construction project' means any construction project except secondary road projects developed pursuant to G.S. 136-44.7 and 136-44.8 eligible for federal funds under any federal-aid act, whether or not federal funds are actually available.
The ‘Budget Appropriations Bill' shall also contain the proposed appropriations of State funds for use in each county for maintenance and construction of secondary roads, to be allocated in accordance with G.S. 136-44.5 and 136-44.6. State funds appropriated for secondary roads shall not be transferred nor used except for the construction and maintenance of secondary roads in the county for which they are allocated pursuant to G.S. 136-44.5 and 136-44.6.
In the event receipts and increments to the State Highway Fund shall be more than the appropriations made for the preceding fiscal year, such excesses shall be allocated by the Director of the Budget to the Department of Transportation for school and industrial access roads and unforeseen happenings or state of affairs requiring prompt action, with fifty percent (50%) of the balance to be allocated to the State secondary roads program on the basis of need as determined by the Department of Transportation and the remaining fifty percent (50%) to be allocated in accordance with G.S. 136-44.5.
The Department of Transportation may provide for costs incurred or accrued for traffic control measures to be taken by the Department at major events which involve a high degree of traffic concentration on State highways, and which cannot be funded from regular budgeted items.  This authorization applies only to events which are expected to generate 30,000 vehicles or more per day."
(b)	G.S. 136-44.12 reads as rewritten:
"§ 136-44.12. Maintenance of roads in areas administered by the Division of Parks and Recreation.
The Department of Transportation shall maintain all roads which are not part of the State Highway System, leading into and located within the boundaries of all areas administered by the Division of Parks and Recreation of the Department of Natural Resources and Community Development.
All such roads shall be planned, designed, and engineered through joint action between the Department of Transportation and the Division of Parks and Recreation of the Department of Natural Resources and Community Development. This joint action shall encompass all accepted park planning and design principles. Particular concern shall be given to traffic counts and vehicle weight, minimal cutting into or through any natural and scenic areas, width of shoulders, the cutting of natural growth along roadways, and the reduction of any potential use of roads for any purpose other than by  park users. All State park roads shall conform to the standards regarding width and other roadway specifications as agreed upon by the Division of Parks and Recreation of the Department of Natural Resources and Community Development and the Department of Transportation.
The State park road systems may be closed to the public in accordance with approved park practices that control the use of State areas so as to protect these areas from overuse and abuse and provide for functional use of the park areas, or for any other purpose considered in the best interest of the public by the Division of Parks and Recreation of the Department of Natural Resources and Community Development.
Nothing herein shall be construed to include the transfer to the Department of Transportation the powers now vested in the Division of Parks and Recreation of the Department of Natural Resources and Community Development relating to the patrol and safeguarding of State parks or parkway roads."
(c)	This section shall become effective July 1, 1990.

Requested by:   Senator Martin of Guilford
––-STATE ACCOUNTING SYSTEM PROJECT FUNDS
Sec. 10.  Effective July 1, 1989, there shall be transferred from contributed capital of the State Information Processing Services (SIPS) internal service fund (Code 74160) to the Office of the State Controller general fund (Code 14160) the sum of $2,000,000 which shall be used by the Office of the State Controller in the ongoing State Accounting System Project.

Requested by:   Senator Parnell
––-CLEAN WATER REVOLVING LOAN AND GRANT FUND APPLICANTS
Sec. 11.  G.S. 159G-3(2) reads as rewritten:
"(2)	‘Applicant' means a local government unit that applies for a revolving loan or grant under the provisions of this Chapter.  In addition, a local government may provide funds to a nonprofit agency which is currently under contract and authorized to provide wastewater treatment or water supply services to that unit of local government."

Requested by:   Senator Murphy
––-P.B. RAIFORD REGIONAL AIRPORT IN DUPLIN COUNTY
Sec. 12.  Section 165 of Chapter 1086 of the 1987 Session Laws reads as rewritten:
"Sec. 165.  Of the funds appropriated for State Aid to Airports in G.S. 136-16.4 for fiscal year 1988-89, the sum of twenty-five thousand dollars ($25,000) shall be allocated to Duplin County for capital improvements at the P.B. Raiford Regional Airport."

Requested by:   Senators Hunt of Durham and  Royall
––-ENO RIVER STATE PARK CAPITAL FUNDS
Sec. 13.  Of the funds appropriated by Section 4 of the Capital Improvement Appropriations Act of 1989 (Senate Bill 1042, Second Edition) to the Department of Natural Resources and Community Development for the Reserve for Development of the State Park System for the fiscal year 1989-90, $500,000 shall be disbursed to the Association for the Preservation of the Eno River Valley, Incorporated, for land acquisition and capital improvements at the Eno River State Park.

Requested by:   Senator Marvin
––-PLAN FOR IMPLEMENTATION OF EDUCATIONAL PROGRAMS FOR CERTAIN HANDICAPPED CHILDREN
Sec. 14.  (a)	During the 1989-90 school year, the Department of Public Education shall plan the implementation of educational programs for handicapped children between the ages of three and five as provided by Title II of Public Law 99-457.  The planning activities shall include:
(1)	Identifying the number of handicapped children between the ages of three and five currently residing in the State;
(2)	Identifying facilities in which services can be provided to these children;
(3)	Estimating the number of qualified persons available to provide services to these children; and
(4)	Developing rules and a budget for implementing the educational programs for handicapped children between the ages of three and five as provided by Title II of Public Law 99-457.
(b) The Department shall report to the General Assembly describing its planning activities, including proposed rules and a detailed budget request, no later than May 1, 1990.
(c) The Department of Human Resources, local school systems, local health departments, and local social services agencies shall provide the Department of Public Education with any assistance it requests in conducting its planning activities and preparing its report to the General Assembly.

Requested by:   Senators Basnight and Martin of Pitt
––-USE OF FUNDS FOR EASTERN DETOXIFICATION PROGRAMS
Sec. 15.  The Department of Human Resources is authorized to use $695,000 for fiscal year 1989-90 from over-realized receipts, Block Grant carry-forward monies, prior year receipts or other funds available to the Department for the established detoxification programs in the Eastern region during the period of study required by the General Assembly to develop an Alcohol Rehabilitation Center Plan.

Requested by:   Senator Royall
––-UNIVERSITY OF NORTH CAROLINA PHYSICAL PLANT BUDGETED OVERHEAD RECEIPTS
Sec. 16.  Budgeted overhead receipts related to the thirty percent (30%) transfers for support of physical plant operations for the University of North Carolina at Chapel Hill, Academic Affairs, for the 1989-90 and 1990-91 fiscal years, as reflected in Section 3 of Chapter 500 of the 1989 Session Laws, shall be increased by one hundred seventy-seven thousand three hundred forty-five dollars ($177,345) and the General Fund appropriations for the 1989-90 and 1990-91 fiscal years shall be decreased by like amounts.  Budgeted overhead receipts related to the thirty percent (30%) transfers for support of physical plant operations for the University of North Carolina at Chapel Hill, Health Affairs, for the 1989-90 and 1990-91 fiscal years as reflected in Chapter 500 of the 1989 Session Laws shall be increased by one hundred forty-one thousand six hundred twenty-one dollars ($141,621) and the General Fund appropriations for the 1989-90 and 1990-91 fiscal years shall be decreased by like amounts.
The appropriations for the University of North Carolina at Chapel Hill, Health Affairs, from the General Fund for the 1989-90 and 1990-91 fiscal years shall be increased by three hundred eighteen thousand nine hundred sixty-six dollars ($318,966) for a Reserve for the Greensboro Regional TEACCH (Treatment and Education of Autistic and other Communications Handicapped Children and Adults) Center.  This reserve shall be available for continuing operations of the Regional TEACCH Center which serves the Greensboro, High Point, and Winston-Salem area.

Requested by:   Senator Royall
––-NORTH CAROLINA MEMORIAL HOSPITAL IMPROVEMENT PROJECT
Sec.  17.  (a)	The purpose of this section is to authorize construction, by North Carolina Memorial Hospital of an Administrative Office Building, in the amount of $8,774,200, and to authorize the financing of this capital improvements project from funds available to the Hospital from gifts, grants, receipts, self-liquidating indebtedness, or other funds, or any combination of funds, but not including funds appropriated from the General Fund of the State.
(b)	The project authorized to be constructed and financed as provided in subsection (a) of this section is as follows:
1.  North Carolina Memorial Hospital
    Administrative Office Building               $8,774,200.
(c)	The Director of the Budget, provided the Director of the Budget may consult with the Advisory Budget Commission, may, when in his opinion it is in the best interest of the State to do so, and upon the request of the Board of Governors of The University of North Carolina, authorize a decrease in the scope or a change in the method of funding of the project authorized by this act.

Requested by:   Senator Goldston
––-DEPARTMENT OF TRANSPORTATION EXEMPTION FROM LIMITATION ON NUMBER OF STATE EMPLOYEES
Sec. 18.  The limitation on the number of State employees contained in G.S. 143-10.2 shall not apply to the Department of Transportation with respect to additional employees in administrative positions and to the Division of Highways with respect to operational and field positions when those administrative, operational, and field positions are needed to plan, design, and construct the specific projects funded by the North Carolina Highway Trust Fund.

Requested by:   Senator Goldston
––-NORTH CAROLINA HIGHWAY TRUST FUND CASH BALANCES
Sec. 19.  Cash balances not required for construction payments in the North Carolina Highway Trust Fund may be advanced to the Highway Fund Equipment Fund to the extent required to acquire the appropriate equipment for force account construction of the Secondary Roads component of the North Carolina Highway Trust Fund construction schedule and plans.  Advances under this section shall not exceed the requirements beyond the first three years and  rental rates shall be established to provide for the repayment during the construction schedule.

Requested by:   Senator Goldston
––-DEPARTMENT OF TRANSPORTATION FUND CODE STRUCTURE REORGANIZATION
Sec. 20.  During the 1989-90 fiscal year the Department of Transportation may reorganize the Fund Code Structure within and between Departmental Administration (Budget Code 84210), the Division of Highway Operations Administration (Budget Code 84220), and Construction and Maintenance Encumbrance Accounts (Budget Code 84230) in order to provide an efficient means of accommodating the additional requirements resulting from the North Carolina Highway Trust Fund.  All changes must be approved by the Director of the Budget and reported quarterly to the Joint Legislative Commission on Governmental Operations.

Requested by:   Senator Goldston
––-EXECUTIVE BUDGET ACT APPLIES TO NORTH CAROLINA HIGHWAY TRUST FUND
Sec. 21.  Notwithstanding the establishment of the North Carolina Highway Trust Fund as an entity, since various components of that Fund are coordinated with programs of the Highway Fund, all projects funded shall be subject to the provisions of the Executive Budget Act (Article 1 of Chapter 143 of the General Statutes) with respect to allotments, obligations, encumbrances, and expenditures with appropriate reporting to the Director of the Budget in the same manner as currently employed for the Highway Fund and the Highway Bond Fund.

Requested by:   Senator Goldston
––-HIGHWAY FUND CASH FLOW FUNDING
Sec. 22.  Cash flow funding as authorized by G.S. 143-28.1 may be used to the extent required to balance the 1990-91 Highway Fund budget for authorized obligations which exceed anticipated revenues.

Requested by:   Senator Plyler
––-ANSON COUNTY AIRPORT FUNDS REALLOCATION
Sec. 23.  (a)	Section 7 of Chapter 1101 of the 1987 Session Laws reads as rewritten:
"Sec. 7.  Of the funds appropriated for State Aid to Airports in G.S. 136-16.4 for fiscal year 1988-89, the sum of fifty-eight thousand dollars ($58,000) shall be allocated to the Anson County Airport for runway maintenance, airport construction, and other airport capital improvements."
(b)	This section shall become effective July 1, 1988.

Requested by:  Senator Royall
––-NO TRANSFERS BETWEEN ITEMS IN THE BUDGET
Sec. 24.  G.S. 143-23(a1) reads as rewritten:
"(a1)	No transfers may be made between line items in the budget of any department, institution, or other spending agency; however, with the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for a line item if the overexpenditure is:
(1)	In a program for which funds were appropriated for that fiscal  period and the total amount spent for the program is no more than was appropriated for the program for the fiscal period;
(2)	Required to continue a program because of unforeseen events, so long as the scope of the program is not increased;
(3)	Required by a court, Industrial Commission, or administrative hearing officer's order or award or to match unanticipated federal funds;
(4)	Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; or
(5)	Required to call out the National Guard.
The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office the reason if the amount expended for a program is more than the amount appropriated for it from all sources.  
Funds appropriated for salaries and wages may only be used for salaries and wages or for premium pay, overtime pay, longevity, unemployment compensation, workers' compensation, temporary wages, contracted personal services, moving expenses, payment of accumulated annual leave, certain awards to employees, tort claims, and employer's social security, retirement, and hospitalization payments: provided, however, funds appropriated for salaries and wages may also be used for purposes for which over expenditures are permitted by subdivisions (3), (4), and (5) of this subsection but the Director of the Budget shall include such use and the reason for it in his quarterly report to the Joint Legislative Commission on Governmental Operations and to  the Fiscal Research Division of the Legislative Services Office. Lapsed salary funds that become available from vacant positions may not be used for new permanent employee positions or to raise the salary of existing employees.
As used in this subsection, ‘program' means a group of expenditure and receipt line items for support of a specific budgeted activity outlined in the certified budget for each department, agency, or institution, as designated by the four-digit fund (purpose)	number in the Budget Preparation System.
The requirements in this section that the Director of the Budget report to the Joint Legislative Commission on Governmental Operations shall not apply to expenditures of receipts by entities that are wholly receipt supported, except for entities supported by the Wildlife Resources Fund."

Requested by:   Senator Marvin
––-SIMPLIFY CLERKS OF SUPERIOR COURT SALARY SCHEDULE
Sec. 25.  (a) G.S. 7A-101(a) reads as rewritten:
"(a)The clerk of superior court is a full-time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county, as determined by the population projections of the Office of State Budget and Management for the year preceding the first year of each biennial budget, according to the following schedule:
Population        	Annual Salary	1989-90	1990-91
	0 to 99,999		44,256	46,920
100,000 to 199,999		50,016	53,028
200,000 and above		57,072	60,054
When a county changes from one population group to another, the salary of the clerk shall be changed to the salary appropriate for the new population group on July 1 of the first year of each biennial budget, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office."
(b)	From funds appropriated to the Judicial Department in the certified budget for the 1989-91 biennium, the Administrative Officer of the Courts may use up to three hundred thirty-two thousand six hundred twenty-five dollars ($332,625) in fiscal year 1989-90 and up to three hundred thirty-three thousand eight hundred eighty-two dollars ($333,882) in fiscal year 1990-91 to meet the additional current operating expenses necessary to increase the salaries and benefits of clerks of superior court in counties with a population of less than 30,000 as required by subsection (a) of this section.

Requested by:   Senator Basnight
––-CIVIL AIR PATROL HEADQUARTERS BUILDING FUNDS
Sec. 26.  Notwithstanding any other provision of law, of the funds appropriated pursuant to G.S. 136-16.4 for aviation purposes, the sum of $100,000 is appropriated for the 1989-90 fiscal year for the construction by the North Carolina Wing of the Civil Air Patrol, Inc., of a new headquarters and training facility.  No less than ninety percent (90%) of these funds will be used for capital improvements, and the remaining ten percent (10%) may be used for furnishings.  In order to receive these funds, the North Carolina Wing of the Civil Air Patrol, Inc., must match the funds on a dollar-for-dollar basis.

Requested by:   Senator Royall
––-EXPAND PURPOSES CERTAIN RECEIPTS MAY BE USED FOR ON THE BUTNER LANDS
Sec. 27.  G.S. 146-30 reads as rewritten:
"§ 146-30. Application of net proceeds.
The net proceeds of any disposition made in accordance with this Subchapter shall be handled in accordance with the following priority: First, in accordance with the provisions of any trust or other instrument of title whereby title to such real property was heretofore acquired or is hereafter acquired; second, as provided by any other act of the General Assembly; third, the net proceeds shall be deposited with the State Treasurer. Provided, however, nothing herein shall be construed as prohibiting the disposition of any State lands by exchange for other lands, but if the appraised value in fee simple of any property involved in the exchange is at least twenty-five thousand dollars ($25,000), then such exchange may not be made without consultation with the Joint Legislative Commission on Governmental Operations.
For the purposes of this Subchapter, the term ‘net proceeds' means the gross amount received from the sale, lease, rental, or other disposition of any State lands, less
(1)	Such expenses incurred incident to that sale, lease, rental, or other disposition as may be allowed under rules and regulations adopted by the Governor and approved by the Council of State;
(2)	Amounts paid pursuant to G.S. 105-296.1, if any; and
(3)	A service charge to be paid into the State Land Fund.
The amount or rate of such service charge shall be fixed by rules and regulations adopted by the Governor and approved by the Council of State, but as to any particular sale, lease, rental, or other disposition, it shall not exceed ten percent (10%) of the gross amount received from such sale, lease, rental, or other disposition. Notwithstanding any other provision of this Subchapter, the net proceeds derived from the sale of land or products of land owned by or under the supervision and control of the Wildlife Resources Commission, or acquired or purchased with funds of that Commission, shall be paid into the Wildlife Resources Fund. Provided, however, the net proceeds derived from the sale of land or timber from land owned by or under the supervision and control of the Department of Agriculture shall be deposited with the State Treasurer in a capital improvement account to the credit of the Department of Agriculture, to be used for such specific capital improvement projects or other purposes as are provided by transfer of funds from those accounts in the Current Operations Appropriations Act. Provided further, the net proceeds derived from the sale of park land owned by or under the supervision and control of the Department of Natural Resources and Community Development shall be deposited with the State Treasurer in a capital improvement account to the credit of the Department of Administration to be used for the purpose of park land acquisition as provided by transfer of funds from those accounts in the Current Operations Appropriations Act. In the Current Operations Appropriations Act, line items for purchase of park and agricultural lands will be established for use by the Departments of Administration and Agriculture. The use of such funds for any specific capital improvement project or land acquisition is subject to approval by the Director of the Budget. No other use may be made of funds in these line items without approval by the General Assembly except for incidental expenses related to the project or land acquisition. Additionally with the approval of the Director of the Budget, either Department may request funds from the Contingency and Emergency Fund when the necessity of prompt purchase of available land can be demonstrated and funds in the capital improvement accounts are insufficient. Provided further, the net proceeds derived from the sale of any portion of the land in or around the unincorporated area known as Butner on or after July 1, 1980, shall be deposited with the State Treasurer in a capital improvement account to the credit of the Hospital to provide water and sewers and to bring those streets in the unincorporated area known as Butner not on the State highway system up to standards adequate for acceptance on the system, according to a plan adopted by the Department of Administration, and the Office of State Budget and Management, with the approval of the Board of County Commissioners of Granville County, to build industrial access roads to industries on the Butner lands, to construct new city streets on the Butner lands, extend water and sewer service on the Butner lands, and repair storm drains on the Butner lands."

Requested by:   Senator Ward
––-UNIVERSITY OF NORTH CAROLINA EXPENDITURES
Sec. 28.  G.S. 116-143 reads as rewritten:
"§ 116-143. State-supported institutions of higher education required to charge tuition and fees.
The Board of Governors of the University of North Carolina shall fix the tuition and fees, not inconsistent with actions of the General Assembly, at the institutions enumerated in G.S. 116-4 in such amount or amounts as it may deem best, taking into consideration the nature of each institution and program of study and the cost of equipment and maintenance; and each institution shall charge and collect from each student, at the beginning of each semester or quarter, tuition, fees, and an amount sufficient to pay other expenses for the term.  Actual receipts in excess of the amounts budgeted may be expended as provided in G.S. 143-23 and G.S. 143-27, and as otherwise provided by law.
In the event that said students are unable to pay the cost of tuition and required academic fees as the same may become due, in cash, the said several boards of trustees are hereby authorized and empowered, in their discretion, to accept the obligation of the student or students together with such collateral or security as they may deem necessary and proper, it being the purpose of this Article that all students in State institutions of higher learning shall be required to pay tuition, and that free tuition is hereby abolished.
Inasmuch as the giving of tuition and fee waivers, or especially reduced rates, represent in effect a variety of scholarship awards, the said practice is hereby prohibited except when expressly authorized by statute or by the Board of Governors of the University of North Carolina; and, furthermore, it is hereby directed and required that all budgeted funds expended for scholarships of any type must be clearly identified in budget reports.
Notwithstanding the above provision relating to the abolition of free tuition, the Board of Governors of the University of North Carolina may, in its discretion, provide regulations under which a full-time faculty member of the rank of full-time instructor or above, and any full-time staff member of the University of North Carolina may during the period of normal employment enroll for not more than one course per semester in the University of North Carolina free of charge for tuition, provided such enrollment does not interfere with normal employment obligations and further provided that such enrollments are not counted for the purpose of receiving general fund appropriations."

Requested by:   Senator Ward
––-ALLOCATION OF BASIC EDUCATION PROGRAM ENHANCEMENT TEACHERS
Sec. 29.  No school unit shall receive from funds appropriated in the continuation budget fewer Basic Education Program Enhancement Teachers in 1989-90 than it received in 1988-89.

Requested by:   Senator Royall
––-INDUSTRIAL DEVELOPMENT FUND
Sec. 30.  Part 2 of Article 10 of Chapter 143B of the General Statutes is amended by adding a new section to read:
"§ 143B-437.1.  Industrial Development Fund.
There is created in the Department of Commerce the Industrial Development Fund to provide funds to assist the local government units of the most economically depressed counties in the State in creating jobs.  The Department of Commerce shall adopt rules providing for the administration of the program.  Those rules shall include the following:
(1)	The funds shall be used for (i) installation of or purchases of manufacturing equipment or process productions equipment, (ii) structural repairs, improvements, or renovations of existing buildings to be used for manufacturing and industrial expansion, and/or (iii) construction of or improvements to new or existing water, sewer, gas, or electrical utility distribution lines or equipment for existing industrial buildings to be used for manufacturing and industrial operations, or (iv) in the case of counties designated as severely distressed counties under G.S. 105-130.40(c) or G.S. 105-151.17(c) or units of local government within those counties, construction of or improvement to new or existing water, sewer, gas, or electrical utility distribution lines or equipment to serve new or proposed industrial buildings to be used for manufacturing and industrial operations.  To be eligible for funding, the water, sewer, gas or electrical utility lines of facilities shall be located on the site of the building or, if not located on the site, shall be directly related to the operation of the specific manufacturing activity.  However, the Secretary of Commerce may use up to one hundred thousand dollars ($100,000) to provide emergency economic development assistance in any county which is documented to be experiencing a major economic dislocation.
(2)	The funds shall be used by the city and county governments for projects that will directly result in the creation of new jobs.  The funds shall be expended at a rate of one thousand two hundred dollars ($1,200) per new job created up to a maximum of two hundred fifty thousand dollars ($250,000) per project.
(3)	The funds may be used by the city or county governments in accordance with rules to be issued by the Department of Commerce governing the use of funds and eligibility for grants under this program.
Each year, on or before December 31, the Secretary of Commerce shall designate the most economically distressed counties in the State; this designation shall remain effective for the following calendar year.  The Secretary of Commerce shall determine which counties are the most economically distressed counties in the State based on (i)	rate of unemployment, (ii) per capita income, and (iii) relative population and work force growth or lack of growth, as determined by the Secretary of Commerce.
The Department of Commerce shall report annually to the General Assembly concerning the applications made to the fund and the payments made from the fund and the impact of the payments on job creation in the State.  The Department of Commerce shall also report monthly to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on to whom payments were made, in what amounts, and for what purposes."

Requested by:   Senator Plyler
––-MOTOR FUELS TAX COLLECTION COSTS
Sec. 31.  Section 17 of Chapter 652 of the General Statutes reads as rewritten:
"Sec. 17.  All sums collected on kerosene and motor fuel pursuant to G.S. 119-18 that are not allotted by the Office of State Budget and Management to administer and enforce the provisions of Chapter 119 and the cost of collection of motor fuels tax under Chapter 105, Article 36 of the General Statutes shall be credited to the Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund and the Noncommercial Leaking Underground Petroleum Storage Tank Cleanup Fund as certified on a monthly basis as follows:  one-half (½) shall be credited to the Commercial Fund and one-half (½) shall be credited to the Noncommercial Fund unless the balance in the Commercial Fund exceeds fifteen million dollars ($15,000,000), and in that event, all such funds shall be credited to the Noncommercial Fund until the balance of the Commercial Fund falls below five million dollars ($5,000,000), at which time credits to the Commercial Fund shall resume."

Requested by:   Senator Taft
––-SALARIES OF INDUSTRIAL COMMISSION CHAIRMAN AND COMMISSIONERS
Sec. 32.  G.S. 97-78(a) reads as rewritten:
"(a)	The salary of each commissioner shall be the same as that fixed from time to time for judges of the superior court except that the chairman shall receive one thousand dollars ($1,000) additional per annum."
Sec. 31.1.  Of the funds appropriated in Section 4 of the Capital Improvements Appropriations Act of 1989 (Senate Bill 1042, Third Edition, Engrossed 7/6/89) to the Department of Natural Resources and Community Development for the Division of Coastal Management, $100,000 is redesignated to the Gates County Board of Education - to bring the High School's wastewater system into compliance with State and Federal wastewater regulations.

Requested by:   Senator Royall
––-EFFECTIVE DATE
Sec. 33.  This act is effective upon ratification.