GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	2 

SENATE BILL 1426
Appropriations Committee Substitute Adopted 6/15/90

Short Title:  Operations Appropriations/1990-91.	(Public)
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Sponsors:
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Referred to:  
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May 30, 1990

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE CURRENT OPERATIONS APPROPRIATIONS FOR NORTH CAROLINA FOR THE 1990-91 FISCAL YEAR AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.
The General Assembly of North Carolina enacts:

Requested by:   Senator Royall
––-INTRODUCTION
Section 1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget.  Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.

Requested by:  Senator Royall
––-TITLE OF ACT
Sec. 2.  This act shall be known as "The Current Operations Appropriations Act of 1990."
            *****
An outline of the provisions of the act follows this section.  The outline shows the heading "––-CONTENTS/INDEX––-”and it lists by general category the descriptive captions for the various sections and groups of sections that make up the act.
   ––-CONTENTS/INDEX––-
(This outline is designed for reference only, and the outline and the corresponding entries throughout the act in no way limit, define, or prescribe the scope or application of the text of the act.)

––-INTRODUCTION 	1
––-TITLE OF ACT 	1
PART I.––-GENERAL FUND APPROPRIATIONS 	5
––-CURRENT OPERATIONS/STATE GOVERNMENT 	5
––-CURRENT OPERATIONS/STATE AID 	9
PART II.––-HIGHWAY FUND APPROPRIATIONS 	10
––-CURRENT OPERATIONS/HIGHWAY FUND 	10
––-CURRENT OPERATIONS/STATE AID 	10
PART III.––-BLOCK GRANT APPROPRIATIONS 	11
––-BLOCK GRANT PROVISIONS 	11
PART IV.––-DEPARTMENT OF ADMINISTRATION 	18
––-N.C. COALITION AGAINST DOMESTIC VIOLENCE FUNDS 	19
––-REDUCTION IN COUNCIL OF GOVERNMENTS FUNDS 	19
PART V.––-GENERAL ASSEMBLY 	20
––-DEFER CONVENING OF GENERAL ASSEMBLY 	20
––-ECONOMIC FUTURE COMMISSION 	20
PART VI.––-OFFICE OF THE GOVERNOR 	21
––-REDUCTION IN CONTINGENCY AND EMERGENCY FUND ALLOCATION 	21
PART VII.––-DEPARTMENT OF REVENUE 	22
––-REDUCE LOCAL TAX REIMBURSEMENTS 5% 	22
––-SCHOOL CAPITAL FUNDING FROM NONRECURRING FUNDS 	33
––-MAIL ORDER SALES TAX TO GENERAL FUND 	34
PART VIII.––-DEPARTMENT OF SECRETARY OF STATE 	34
––-REPEAL OF STATEWIDE VOTER FILE 	34
PART IX.––-EMPLOYEE SALARIES AND BENEFITS 	34
––-FREEZE VACANT POSITIONS FOR FISCAL YEAR 1990-91 	34
PART X.––-DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES  35
––-LUMBER RIVER PARK RANGER 	35
––-UNION FIRE PLOW OPERATOR/COUNTY RANGERS 	35
––-USE OF LAPSED SALARIES 	36
––-BUXTON WOODS PURCHASE FUNDS 	36
––-WASTE STREAM ANALYSIS 	36
––-ENVIRONMENTAL HEALTH PROGRAMS 	39
––-WILDLIFE COMMISSION FUNDS 	39
––-WILDLIFE COMMITTEE EXPENSES 	39
––-LIABILITY INSURANCE FOR HEALTH CARE EMPLOYEES 	40
––-EPIDEMIOLOGY LINE ITEM TRANSFERS 	40
––-STATEWIDE MEDICAL EXAMINER FUNDS 	40
––-NON-MEDICAID REIMBURSEMENT 	40
––-REDUCE INFANT MORTALITY 	41
PART XI.––-DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT 	42
––-ECONOMIC DEVELOPMENT PUBLICATIONS 	42
––-NORTH CAROLINA MANUFACTURING DIRECTORY PROCEEDS 	42
––-WORKER TRAINING TRUST FUND 	43
––-RURAL ECONOMIC DEVELOPMENT CENTER 	44
––-CELEBRATION FOUNDATION, INC. 	45
––-HOUSING PARTNERSHIP 	45
PART XII.––-DEPARTMENT OF HUMAN RESOURCES 	46
––-MEDICAID PROGRAM FUNDS/ADMINISTRATIVE ACTIVITIES 	46
––-EMERGENCY ASSISTANCE FUNDS 	46
––-DHR PROGRAMS FUNDS 	47
––-MEDICAID SERVICES COVERAGE CHANGE 	47
––-INFANT MORTALITY REDUCTION 	50
––-REVISED MEDICAID COVERAGE FOR PREGNANT WOMEN AND CHILDREN 	50
––-USE OF OVERREALIZED RECEIPTS FOR PIONEER PROJECT 	51
––-WILLIE M. REPORTING CHANGE 	52
––-EASTERN REGIONAL DETOXIFICATION FUNDS CHANGE 	52
––-CHRONICALLY MENTALLY ILL FUNDS ALLOCATION 	52
––-ADAP TRANSPORTATION REIMBURSEMENT 	52
––-SPECIALIZED RESIDENTIAL CENTERS' BED CONVERSIONS 	53
––-DHR PLANNING FUNDS 	53
––-AUTISM SOCIETY FUNDS 	53
––-BUDGET REQUIRED TO INCLUDE STATE COST OF LOCAL PROGRAMS 	54
––-CUED SPEECH FUNDS LIMITS 	54
––-DAY CARE RATES 	54
––-COMMUNITY ACTION PROGRAM FUNDS 	56
PART XIII.––-COLLEGES AND UNIVERSITIES 	57
––-AID TO PRIVATE COLLEGES CLARIFICATION 	57
––-UNC INSTITUTIONS' CENTENNIAL CELEBRATION FUNDS 	58
PART XIV.––-COMMUNITY COLLEGES 	58
––-RICHMOND COMMUNITY COLLEGE/CHILDBIRTH CLASSES 	58
––-STATE BOARD OF COMMUNITY COLLEGES GUIDELINES 	59
––-COMMUNITY COLLEGE TUITION INCREASE 	59
––-" TECH PREP”IMPLEMENTATION 	60
––-COMMUNITY COLLEGE BOOKSTORE SALES 	60
PART XV.––-PUBLIC SCHOOLS 	60
––-SCHOOL TRANSPORTATION BUDGET REDUCTION/ IMPLEMENTATION 	60
––-CAREER DEVELOPMENT PROGRAM FUNDING LEVEL 	61
––-BASIC EDUCATION FUNDS 	62
––-COMPLETION OF BASIC EDUCATION PROGRAM 	63
––-TEACHING FELLOWS FUND USES 	65
––-ELIMINATE EDUCATION REPORTS 	65
––-ACCREDITATION STANDARDS REASSESSED 	66
––-SMALL SCHOOL PROGRAM ALLOTMENTS 	66
––-LEAVE ACCUMULATION/PUBLIC SCHOOL EMPLOYEES 	67
––-PROSPECTIVE TEACHER SCHOLARSHIP LOAN PROGRAM/EXPANDED TO COVER ADDITIONAL CERTIFIED EMPLOYEES  71
––-CHILD NUTRITION STAFF DEVELOPMENT 	73
––-UNIFORM EDUCATION REPORTING SYSTEM FUNDS 	73
––-EDUCATION FOUNDATIONS 	73
––-LIMIT UNIFORM EDUCATION REPORTING SYSTEM FINES 	74
PART XVI.––-DEPARTMENT OF CORRECTION 	74
––-GATES COUNTY SCHOOL WASTEWATER TREATMENT 	74
––-ELECTRONIC SURVEILLANCE FUNDS 	75
––-DEPARTMENT OF CORRECTION EXPANSION FUNDS 	75
––-LIMIT USE OF OPERATIONAL FUNDS 	75
––-RAISE PER DIEM REIMBURSEMENT 	75
––-SOUTHERN APPALACHIA MAINSTREAM FUNDS 	76
––-PRIVATE ALCOHOL AND DRUG ABUSE DETENTION CENTER 	76
PART XVII.––-JUDICIAL DEPARTMENT 	76
––-RESERVE FOR RESENTENCING HEARINGS IN CAPITAL CASES 	76
––-EXTEND CERTAIN SPECIAL SUPERIOR COURT JUDGE TERMS 	77
––-INCREASED JUDICIAL DEPARTMENT OPERATING EXPENSE REQUIREMENTS  77
PART XVIII.––-DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY 	77
––-CONTINUE SUMMIT HOUSE FUNDING 	77
––-COMMUNITY PENALTIES PROGRAMS FUNDS 	78
––-HIGHWAY PATROL POSITIONS FILLED ONLY IN FISCAL YEAR IN WHICH THEY OCCUR  79
––-NO REORGANIZATION OF COMMUNITY PENALTIES PROGRAMS 	79
––-ELIGIBILITY FOR VICTIMS COMPENSATION FUNDS 	80
PART XIX.––-DEPARTMENT OF JUSTICE 	80
––-STATE BUREAU OF INVESTIGATION SALARY ADJUSTMENT 	80
––-MOBIL PLAN RESPONSE PROJECT 	81
PART XX.––-DEPARTMENT OF TRANSPORTATION 	81
––-CAPITAL IMPROVEMENT REVERSIONS 	81
––-SPECIAL APPROPRIATIONS FOR HIGHWAYS 	82
––-CASH FLOW HIGHWAY FUND APPROPRIATIONS 	83
––-CASH FLOW - HIGHWAY TRUST FUND APPROPRIATION 	83
––-TRANSFER OF DRIVER EDUCATION PROGRAM TO D.O.T. 	83
––-CONFORM DOT MINORITY PARTICIPATION TO FEDERAL REGULATIONS 	84
––-FILL CERTAIN HIGHWAY FUND COMPUTER POSITIONS 	85
––-INMATE LABOR FUNDING 	85
PART XXI.––-MISCELLANEOUS PROVISIONS 	85
––-EXECUTIVE BUDGET ACT APPLIES 	86
––-COMMITTEE REPORT 	86
––-MOST TEXT APPLIES ONLY TO 1990-91 	86
––-1989-90 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY 	86
––-EFFECT OF HEADINGS 	86
––-SEVERABILITY CLAUSE 	86
––-EFFECTIVE DATE 	87

PART I.––-GENERAL FUND APPROPRIATIONS

––-CURRENT OPERATIONS/STATE GOVERNMENT
Sec.  3.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated except for aid to certain governmental and nongovernmental units are made for the fiscal year ending June 30, 1991, according to the schedule that follows.  The amounts set out in the schedule are in addition to other appropriations from the General Fund for these purposes for the 1990-91 fiscal year.  Amounts set out in brackets are reductions from General Fund appropriations for the 1990-91 fiscal year.
Current Operations - General Fund	 1990-91

General Assembly	$    (652,119)

Judicial Department	(5,284,241)

Department of the Governor
01.	Office of the Governor	(182,700)
02.	Office of State Budget
and Management	(112,620)

Lieutenant Governor's Office	(40,764)

Department of Secretary of State	(113,832)

Department of State Auditor	(243,981)

Department of State Treasurer	(164,311)

Department of Public Education	(143,950,763)

Department of Justice	(1,464,747)

Department of Administration
01.	Administration	(1,215,421)
02.	State Controller	(174,695)

Department of Agriculture	(1,287,933)

Department of Labor	(276,744)

Department of Insurance	(414,707)

Department of Environment, Health, and
Natural Resources	(1,980,024)

Office of Administrative Hearings	(75,344)

Administrative Rules Review Commission	(9,224)

Department of Human Resources
01.	Alcoholic Rehabilitation Center - 
Black Mountain	(6,622)
02.	Alcoholic Rehabilitation Center - 
Butner	(45,304)
03.	Alcoholic Rehabilitation Center - 
Greenville	19,047
04.	N.C. Special Care Center	(2,801,430)
05.	Black Mountain Center	357,834
06.	DHR - Administration and Support
Program	(878,007)
07.	Division of Aging	(630)
08.	Schools for the Deaf and Blind	(191,384)
09.	Social Services	(1,800,287)
10.	Medical Assistance	(5,714,457)
11.	Division of Services for the
Blind	(221,915)
12.	Division of Mental Health,
Developmental Disabilities, and
	Substance Abuse Services	485,305
13.	Dorothea Dix Hospital	(2,084,378)
14.	Broughton Hospital	(1,656,949)
15.	Cherry Hospital	(2,060,511)
16.	John Umstead Hospital	(1,401,269)
17.	Western Carolina Center	(253,371)
18.	O'Berry Center	(1,246,897)
19.	Murdoch Center	(628,437)
20.	Caswell Center	(3,828,750)
21.	Division of Facility Services	(42,280)
22.	Division of Vocational
Rehabilitation Services	(930,455)
23.	Division of Youth Services	50,798
Total Department of
Human Resources	(24,880,349)

Department of Correction	8,512,961

Department of Economic and
Community Development	(627,255)

Department of Revenue	(1,915,645)

Department of Cultural Resources	(678,323)

Department of Crime Control
and Public Safety	(771,768)

University of North Carolina - Board
of Governors

01.	General Administration	(1,837,118)
02.	University Operations - 
Lump Sum	(150,000)
03.	Related Educational Programs	(199,248)
04.	University of North Carolina
at Chapel Hill
a.  Academic Affairs	(4,191,631)
b.  Division of Health
    Affairs	(2,630,850)
c.  Area Health Education
    Centers	(776,126)
05.	North Carolina State University
at Raleigh
a.  Academic Affairs	(5,068,248)
b.  Agricultural Research
    Service	(1,182,000)
c.  Agricultural Extension
    Service	(922,966)
06.	University of North Carolina at
Greensboro	(1,807,442)
07.	University of North Carolina at
Charlotte	(1,846,863)
08.	University of North Carolina at
Asheville	(498,626)
09.	University of North Carolina at
Wilmington	(1,057,170)
10.	East Carolina University
a.  Academic Affairs	(2,428,095)
b.  Division of Health Affairs	(1,232,739)
11.	North Carolina Agricultural and
Technical State University	(1,147,342)
12.	Western Carolina University	(1,137,402)
13.	Appalachian State University	(1,724,988)
14.	Pembroke State University	(476,647)
15.	Winston-Salem State University	(492,863)
16.	Elizabeth City State
University	(435,513)
17.	Fayetteville State University	(526,273)
18.	North Carolina Central
University	(894,904)
19.	North Carolina School of the
Arts	(248,353)
20.	North Carolina Science and
Math High School	(230,356)
21.	North Carolina Memorial
Hospital	(1,159,170)
Total University of North
Carolina	(34,302,933)

Department of Community Colleges	(2,908,198)

State Board of Elections	(12,917)

Contingency and Emergency	(33,750)

Reserve for Salary Adjustments	(11,273)

Reserve to Freeze Vacant Positions	(40,000,000)

Debt Service	4,645,800

GRAND TOTAL CURRENT OPERATIONS–
GENERAL FUND	(250,627,820)

––-CURRENT OPERATIONS/STATE AID
Sec. 4.  Appropriations from the General Fund of the State for aid to certain governmental and nongovernmental units as enumerated are made for the fiscal year ending June 30, 1991, according to the schedule that follows.  The amounts set out in the schedule are in addition to other appropriations from the General Fund for these purposes for the 1990-91 fiscal year.  Amounts set out in brackets are reductions from General Fund appropriations for the 1990-91 fiscal year.
General Fund	1990-91

Department of Administration	(116,749)

Department of Agriculture	(8,250)

Department of Environment, Health,
and Natural Resources	859,728

Department of Human Resources
01.	Social Services	(1,200,000)
02.	Social Services - State Aid
to Non-State Agencies	100,000
03.	Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services	1,777,319
04.	Division of Medical Assistance	750,000
Total Department of Human Resources	1,427,319

Department of Correction	190,000

Department of Economic and Community Development
01.	Economic and Community Development	(260,000)
02.	Microelectronics Center	(643,003)
03.	Biotechnology Center	(248,916)

Department of Cultural Resources	(542,775)

Department of Crime Control and
Public Safety	165,000

University of North Carolina - 
Board of Governors
01. Related Educational Programs	(1,214,052)

Reimbursements to Local Governments	(11,700,000)

Grand Total State Aid –
General Fund	(12,091,698)

PART II.––-HIGHWAY FUND APPROPRIATIONS

––-CURRENT OPERATIONS/HIGHWAY FUND
Sec. 5.  Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the fiscal year ending June 30, 1991, according to the schedule that follows.  The amounts set out in the schedule are in addition to other appropriations from the Highway Fund for these purposes for the 1990-91 fiscal year.  Amounts set out in brackets are reductions from Highway Fund appropriations for the 1990-91 fiscal year.
Current Operations-Highway Fund	 1990-91

Department of Transportation
01.	Administration	2,775,000
02.	Highways
a.	State Construction
(01)	Secondary
Construction	(2,790,393)
(02)	Special Appropriation
for Highways	(63,371,451)
b.	Ferry Operations	(373,298)
03.	Division of Motor Vehicles	3,639,213
04.	Driver Education Program	28,506,761

Appropriations for Other State Agencies
01.	Crime Control and Public
Safety	(3,031,035)
02.	Other Agencies
a.	Department of Correction	2,883,856

Reserve for Unforeseen Events	2,145,177

GRAND TOTAL CURRENT OPERATIONS–
HIGHWAY FUND	(29,616,170)

––-CURRENT OPERATIONS/STATE AID
Sec. 6.  Appropriations from the Highway Fund of the State to State departments, institutions, and agencies for aid to certain governmental and nongovernmental units are made for the fiscal year ending June 30, 1991, according to the schedule that follows.  The amounts set out in the schedule are in addition to other appropriations from the Highway Fund for these purposes for the 1990-91 fiscal year.  Amounts set out in brackets are reductions from Highway Fund appropriations for the 1990-91 fiscal year.
Highway Fund	1990-91

State Aid to Municipalities	(2,790,393)

Grant to Keep North Carolina Beautiful, Inc.	25,000

Grand Total State Aid –
Highway Fund	(2,765,393)

PART III.––-BLOCK GRANT APPROPRIATIONS

Requested by: Senators Walker, Martin of Pitt
––-BLOCK GRANT PROVISIONS
Sec. 7.  (a)	Appropriations from federal block grant funds are made for the fiscal year ending June 30, 1991, according to the following schedule:
JOB TRAINING PARTNERSHIP ACT
01.	Title II A funds to the 27
service delivery areas to train
economically disadvantaged youth
and adults	$ 18,917,881

02.	Education setaside to State
education agencies for projects
to serve eligible participants 	1,940,295

03.	Incentive grants and technical
assistance funds to service
delivery areas	1,455,222

04.	Funds for training economically
disadvantaged older workers 	727,611

05.	Funds to the Department of Economic
and Community Development
to administer and audit all
activities related to the Job
Training P'ship Act Programs 	1,212,685

06.	Title II B Summer Youth Employment
and Training funds to service
delivery areas for economically
disadvantaged youth	9,695,044

07.	Title III Dislocated workers funds
to the Employment Security
Commission	3,877,627

TOTAL JOB TRAINING PARTNERSHIP ACT	$ 37,826,365

COMMUNITY SERVICES BLOCK GRANT

01.	Community Action Agencies	$  7,899,715

02.	Limited Purpose Agencies	438,873

03.	Department of Human Resources
to administer and monitor
the activities of the
Community Services Block Grant	438,873

TOTAL COMMUNITY SERVICES BLOCK GRANT	$  8,777,461

COMMUNITY DEVELOPMENT BLOCK GRANT

01.	State Administration	$    824,680

02.	Urgent Needs/Contingency	1,770,466

03.	Development Planning/Housing	1,770,466

04.	Economic Development	7,081,864

05.	Community Revitalization	24,786,524

TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT	$ 36,234,000

EDUCATION CONSOLIDATION AND IMPROVEMENT
BLOCK GRANT	$ 11,526,834

PREVENTIVE HEALTH BLOCK GRANT

01.	Emergency Medical Services	$    455,087

02.	Basic Public Health Services    	879,362

03.	Hypertension Programs	545,234

04.	Health Education/Risk Reduction Programs and
Health Promotion/Local Health Departments	936,118

05.	Fluoridation of Water Supplies	146,079

06.	Rape Prevention and Rape
Crisis Programs	91,010

07.	AIDS/HIV Education, Counseling,
and Testing	294,374

08.	TB Control Program	57,077

TOTAL PREVENTIVE HEALTH BLOCK GRANT	$  3,404,341

MATERNAL AND CHILD HEALTH SERVICES

01.	Healthy Mother/Healthy Children
Block Grants to Local Health
Departments	$ 11,718,781

02.	High Risk Maternity Clinic Services,
Perinatal Education, and Consultation
to Local Health Departments
and Other Health Care Providers	1,467,217

03.	Services to Disabled Children	4,132,297

04.	Sudden Infant Death Syndrome	32,633

05.	Lead-Based Paint Poisoning	71,200

06.	New Special Projects	1,249,653

07.	Reimbursements for Local Health
Departments for Contracted
Nutritional Services	120,530

TOTAL MATERNAL AND CHILD
HEALTH SERVICES 	      $ 18,792,311

SOCIAL SERVICES BLOCK GRANT

01.	County Departments of Social Services	$ 43,304,967

02.	Allocation for In-Home Services provided
by County Departments of
Social Services       	1,200,000

03.	Division of Mental Health, Developmental
Disabilities, and Substance Abuse	5,881,994

04.	Division of Services for the Blind	3,069,228

05.	Division of Youth Services	1,051,428

06.	Division of Facility Services	263,261

07.	Division of Aging	333,706

08.	Day Care Services	12,517,760

09.	Volunteer Services	53,361

10.	State Administration and State Level
Contracts	3,401,714

11.	Voluntary Sterilization funds	100,000

12.	Transfer to Maternal and Child
Health Block Grant	1,691,909

13.	Adult Day Care Services	661,419

14.	County Departments of Social Services for
Child Abuse/Prevention and
Permanency Planning	400,000

15.	Allocation to Division of Health Services
for Grants in Aid to Prevention
Programs                      	445,000

16.	Transfer to Preventive Health
Block Grant for Emergency Medical Services
and Basic Public Health Services	492,611

17.	Allocation to Preventive Health Block
Grant for AIDS Education	294,374

18.	Allocation to Department of Administration
for North Carolina Fund for Children	45,270

TOTAL SOCIAL SERVICES BLOCK GRANT	$ 75,208,002

LOW INCOME ENERGY BLOCK GRANT

01.	Energy Assistance Programs	$ 18,196,292

02.	Crisis Intervention	4,441,897

03.	Administration	1,968,611

04.	Weatherization Program	1,737,187

05.	Indian Affairs	27,222

06.	Transfer to Preventive Health Block Grant
for Emergency Medical Services Program	209,116

07.	Transfer to Social Services
Block Grant for Adult
Day Care Services	417,648

08.	Transfer to Social Services Block
Grant for State Administration
& Contract Service	192,748

09.	Transfer to Maternal and Child Health
Grant for Maternal and Child Health
Block Grant in the Division of
Health Services for Healthy Mothers
and Children	1,696,362

10.	Transfer to SSBG for allocation to the
Department of Administration for
the North Carolina Fund for Children	45,270

TOTAL LOW INCOME ENERGY BLOCK GRANT	$ 28,932,353

ALCOHOL AND DRUG ABUSE AND MENTAL HEALTH
SERVICES BLOCK GRANT

01.	Allocate funds to the four regional
offices on a per capita basis
for mental health services 	$  1,866,556

02.	Provide services for young chronically
mentally ill adults, some of whom
aged out of the Willie M. class
prior to receiving appropriate
services	200,000

03.	Programs for the Chronically
Mentally Ill	3,084,847

04.	Continuation of child mental health
nonresidential services in
accordance with the Child Mental
Health Plan	279,781

05.	Continuation of child mental health
residential services including group
homes, specialized foster care,
therapeutic homes, professional
parenting programs, and respite care,
with an emphasis on children under
the age of 12	341,418

06.	Continuation and expansion of community-
based alcohol and drug services
including prevention, early inter-
vention, treatment, rehabilitation,
nonhospital medical detoxification
and training	                           5,435,884

07.	Continuation and expansion of services
to female substance abusers,
including specialized services at
the ADATCS	2,448,946

08.	Continuation and expansion of services to
IV drug abusers, including increased
capacity for drug screens and IV
services at the ADATCS	3,477,240

09.	Services to adolescents, including
continuation and expansion of services
in accordance with the Youth Substance
Abuse Plan	3,140,864

10.	Funding to support the provision of
Treatment Alternatives to Street
Crimes (TASC) programs for adults
and four demonstration projects with
local jails	462,104

11.	Continuing of funding for detoxification
services in the Eastern Region	1,048,110

12.	Revolving loan pool for residential living
for recovering substance abusers	100,000

13.	Administration	1,000,898

TOTAL ALCOHOL, DRUG ABUSE AND
MENTAL HEALTH SERVICES
BLOCK GRANT	$ 22,886,648

MENTAL HEALTH SERVICES FOR THE HOMELESS
BLOCK GRANT

01.	Specialized Community Services for the
Chronically Mentally Ill	$    275,000
02.	Community-based Services for Chronically
Mentally Ill Youth	75,195

TOTAL MENTAL HEALTH SERVICES FOR THE
HOMELESS BLOCK GRANT	$    350,195

COMMUNITY YOUTH ACTIVITY PROGRAM BLOCK GRANT

01.	Development of Community-Based Substance
Abuse Prevention Programs
for Youth	$     83,623

02.	Evaluation	6,800

TOTAL COMMUNITY YOUTH ACTIVITY PROGRAM
BLOCK GRANT	$     90,423

(b) Decreases in Federal Fund Availability
If federal funds are reduced below the amounts specified above after the effective date of this act, then every program, in each of the federal block grants listed above, shall be reduced by the same percentage as the reduction in federal funds.  If federal funds are reduced in the Education Consolidation and Improvement Act Chapter II Block Grant, then the State Board of Education shall determine how reductions are to be made among the various local agencies.
(c) Increases in Federal Fund Availability
Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended as follows:
(1)	For the Community Development Block Grant or for the Preventive Health Block Grant - each program category under the Community Development Block Grant or the Preventive Health Block Grant, as applicable, shall be increased by the same percentage as the increase in federal funds.
(2)	For the Maternal and Child Health Services Block Grant - these additional funds shall be allocated to local health departments to assist in the reduction of infant mortality.
(3)	For other block grants - these additional funds may be budgeted by the appropriate department, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.  All these budgeted increases shall be reported to the Joint Legislative Commission on Governmental Operations and to the Director of the Fiscal Research Division.
This subsection shall not apply to Job Training Partnership Act funds.
(d) Education Setaside of JTPA Funds
The Department of Economic and Community Development shall certify to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office when Job Training Partnership Act funds have been distributed to each agency, the total amount distributed to each agency, and the total amount of eight percent (8%) Education Setaside funds received.

PART IV.––-DEPARTMENT OF ADMINISTRATION

Requested by:   Senator Martin of Guilford
––-N.C. COALITION AGAINST DOMESTIC VIOLENCE FUNDS
Sec. 8.  Section 15 of Chapter 752, Session Laws of 1989, reads as rewritten:
"Sec. 15.  The funds appropriated to the Department of Administration, Council on the Status of Women, for fiscal years 1989-90 and 1990-91 for domestic violence centers, shall be allocated equally among all of the 61 domestic violence centers in operation on February 1, 1989, that offered services including a hotline, transportation services, community education programs, daytime services, and call forwarding during the night.  For the 1989-90 fiscal year, each grant shall be $15,000.  For the 1990-91 fiscal year, each grant shall be $17,500. The North Carolina Coalition Against Domestic Violence, Incorporated, is eligible for a grant of $10,000 under this section."

Requested by:   Senator Martin of Guilford
––-REDUCTION IN COUNCIL OF GOVERNMENTS FUNDS
Sec. 9.  Section 42 of Chapter 500, Session Laws of 1989, reads as rewritten:
"Sec. 42.  (a)	Of the funds appropriated by Section 5 of this act to the Department of Administration, the sum of nine hundred ninety thousand dollars ($990,000) for the 1989-90 fiscal year and nine hundred sixty thousand three hundred dollars ($960,300) for the 1990-91 fiscal year shall only be used as provided by this section.  Each regional council of government or lead regional organization is allocated an amount up to fifty-five thousand dollars ($55,000) in the 1989-90 fiscal year and fifty-three thousand three hundred fifty dollars ($53,350) in the 1990-91 fiscal year, with the actual amount calculated as provided in subsection (b) of this section.
(b)	The funds shall be allocated as follows:  A share of the maximum each fiscal year shall be allocated to each county and smaller city based on the most recent annual estimate of the Office of State Budget and Management of the population of that county (less the population of any larger city within that county) or smaller city, divided by the sum of the total population of the region (less the population of larger cities within that region) and the total population of the region living in smaller cities.  Those funds shall be paid to the regional council of governments for the region in which that city or county is located upon receipt by the Department of Administration of a resolution of the governing board of the county or city requesting release of the funds.  If any city or county does not so request payment of funds by June 30 of a State fiscal year, that share of the allocation for that fiscal year shall revert to the General Fund.
(c)	A council of governments may use funds appropriated by this section only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, and other activities as deemed appropriate by the member governments.
(d)	Funds appropriated by this section may not be used for payment of dues or assessments by the member governments, and may not supplant funds appropriated by the member governments.
(e)	As used in this section ‘Larger City' means an incorporated city with a population of 50,000 or over.  ‘Smaller City' means any other incorporated city."

PART V.––-GENERAL ASSEMBLY

Requested by:   Senator Royall
––-DEFER CONVENING OF GENERAL ASSEMBLY
Sec. 10.  G.S. 120-11.1 reads as rewritten:
"§ 120-11.1.  Time of meeting.
The regular session of the Senate and House of Representatives shall be held biennially beginning at 12:00 noon on the third Wednesday after the second Monday in January next after their election."

Requested by:   Senator Basnight
––-ECONOMIC FUTURE COMMISSION
Sec. 11.  (a)	The Economic Future Study Commission is created.  The Commission shall: 
(1)	Review the State's needs for changes in the revenue and budget structure to meet the needs of the State over the long term;
(2)	Make a comprehensive review of the State and local tax system, particularly in light of future economic trends that may affect revenues generated by existing taxes; and
(3)	Recommend proposals to enhance the State's revenue position, adapt the State tax structure to changes in the economy, avoid placing undue tax burdens on any segment of the population, and preserve the positive impact of the tax structure on the economic future of the State.
(b)	The Commission shall consist of 30 members to be appointed as follows:
(1)	Two members of the Senate appointed by the President Pro Tempore of the Senate.
(2)	Eight public members appointed by the President Pro Tempore of the Senate.
(3)	Two members of the House of Representatives appointed by the Speaker of the House of Representatives.
(4)	Eight public members appointed by the Speaker of the House of Representatives.
(5)	Two members of the General Assembly appointed by the Governor.
(6)	Eight public members appointed by the Governor.
The President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Governor shall ensure that the members of the Commission are representative of all North Carolinians, including representatives of business and industry, professionals, educators, ethnic groups, environmental advocates, low-income citizens, and consumers.  The three appointing officers shall jointly designate one member to serve as chair of the Commission.
(c)	Members appointed to the Commission shall serve until the Commission makes its final report.  Vacancies on the Commission shall be filled by the same appointing officer who made the original appointments.
(d)	Upon request of the Commission or its staff, all State departments and agencies and all local government agencies shall furnish to the Commission or its staff any information in their possession or available to them.  The Commission, while in the discharge of official duties, may exercise all the powers provided for under the provisions of G.S. 120-19, and G.S. 120-19.1 through G.S. 120-19.4.  
(e)  The Commission shall submit a final report of its findings and recommendations to the 1991 General Assembly on or before February 1, 1991, by filing the report with the Speaker of the House of Representatives and President Pro Tempore of the Senate.  The Commission shall terminate upon filing its final report.
(f)  The Commission shall have its initial meeting on or before September 1, 1990.  The Commission shall meet upon the call of the chair.
(g)  The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120-32.02.  Upon approval of the Legislative Services Commission, the Legislative Services Officer shall assign professional and clerical staff to assist in the work of the Commission.  Clerical staff shall be furnished to the Commission through the offices of House and Senate supervisors of clerks.  The expenses of employment of the clerical staff shall be borne by the Commission.  The Commission may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission.  Commission members may travel to other states in order to examine other states' revenue and budget structures, upon the approval of the Legislative Services Commission.
(h)  Members of the Commission shall receive per diem, subsistence, and travel allowances as follows:
(1)	Commission members who are also General Assembly members, at the rate established in G.S. 120-3.1;
(2)	Commission members who are officials or employees of the State or local government agencies, at the rate established in G.S. 138-6; and
(3)	All other Commission members, at the rate established in G.S. 138-5.

PART VI.––-OFFICE OF THE GOVERNOR

Requested by:   Senator Royall
––-REDUCTION IN CONTINGENCY AND EMERGENCY FUND ALLOCATION
Sec. 12.  Section 50 of Chapter 752, Session Laws of 1989 reads as rewritten:
"Sec. 50.  Of the funds appropriated to the Contingency and Emergency Fund in Section 3 of Chapter 500 of the 1989 Session Laws, the Current Operations Appropriations Act of 1989, the sum of $900,000 for the 1989-90 fiscal year and the sum of $900,000 for the 1990-91 fiscal year shall be designated for emergency allocations, which are for the purposes outlined in G.S. 143-23(a1)(3), (4), and (5).  The sum of $225,000 for the 1989-90 fiscal year and the sum of $191,250 for the 1990-91 fiscal year shall be designated for other allocations from the Contingency and Emergency Fund."

PART VII.––-DEPARTMENT OF REVENUE

Requested by:   Senator Royall
––-REDUCE LOCAL TAX REIMBURSEMENTS 5%
Sec. 13.  (a)	The reimbursements to be made under G.S. 105-164.44C, 105-213(a), 105-213.1, 105-275.1, 105-277A, and 105-277.1A, shall be reduced by five percent (5%) beginning in the 1990-91 fiscal year as provided in this section.
(b) Section 52(a) of Chapter 752 of the 1989 Session Laws reads as rewritten:
"(a)	There is created in the Department of Revenue a special reserve to be known as the Local Government Tax Reimbursement Reserve.  Funds in the Reserve shall be used to reimburse local governments for certain reductions in tax revenue resulting from tax legislation enacted by the General Assembly.  There is appropriated from the General Fund to the Local Government Tax Reimbursement Reserve $231,755,615 for the 1989-90 fiscal year and $222,389,201 for the 1990-91 fiscal year.  The Department of Revenue shall distribute the funds appropriated to the Local Government Tax Reimbursement Reserve for the 1989-90 and 1990-91 fiscal years as follows:
(1)	The sum of $5,366,497 for the 1989-90 fiscal year and the sum of $5,337,786 for the 1990-91 fiscal year shall be used as needed to reimburse local governments, in accordance with G.S. 105-164.44C, for the impact of the exemption of food stamp purchases from sales tax under Chapter 656 of the 1985 Session Laws.
(2)	The sum of $5,439,102 for the 1989-90 fiscal year and the sum of $5,580,519 for the 1990-91 fiscal year shall be used to reimburse local governments, in accordance with the second sentence of the third paragraph of G.S. 105-213(a), for the impact of the intangibles tax exemption of certain accounts and accounts receivable under Chapter 656 of the 1985 Session Laws.
(3)	The sum of $24,902,468 for the 1989-90 fiscal year and the sum of $24,221,414 for the 1990-91 fiscal year shall be used to reimburse local governments, in accordance with G.S. 105-213.1, for the impact of the intangibles tax exemption of money on deposit and money on hand under Chapter 656 of the 1985 Session Laws.
(4)	The sum of $107,973,963 for the 1989-90 fiscal year and the sum of $102,575,264 for the 1990-91 fiscal year shall be used to reimburse local governments, in accordance with G.S. 105-275.1 as enacted by Chapter 622 of the 1987 Session Laws and rewritten by Chapters 813 and 1041 of the 1987 Session Laws, for the impact of the property tax exemption for inventories of manufacturers and for livestock, poultry, and feed under Chapters 622, 813, and 1041 of the 1987 Session Laws.
(5)	The sum of $80,373,585 for the 1989-90 fiscal year and the sum of $77,373,468 for the 1990-91 fiscal year shall be used to reimburse local governments, in accordance with G.S. 105-277A as rewritten by Chapters 622, 813, and 1041 of the 1987 Session Laws, for the impact of the property tax exemption for inventories of wholesalers and retailers under Chapter 656 of the 1985 Session Laws and Chapter 622 of the 1987 Session Laws.
(6)	The sum of $7,700,000 for the 1989-90 fiscal year and the sum of $7,300,750 for the 1990-91 fiscal year shall be used as needed to reimburse local governments, in accordance with G.S. 105-277.1A, for the impact of the expansion of the property tax homestead exemption under Chapter 1052 of the 1981 Session Laws and Chapter 656 of the 1985 Session Laws.
The amounts designated for the reimbursements are estimates.  If the amount designated is insufficient to pay for any of the reimbursements provided in this section, the Department of Revenue shall draw additional funds from the Local Government Tax Reimbursement Reserve to be used to make the reimbursement.  If the funds appropriated to the Reserve are insufficient to pay for the reimbursements provided in this section, the State Budget Officer shall withhold from net collections under Article 2B of Chapter 105 of the General Statutes the remaining amount necessary to pay for the reimbursements.  Funds remaining in the Local Government Tax Reimbursement Reserve at the end of each fiscal year shall revert to the General Fund."
(c)	G.S. 105-164.44C reads as rewritten:
"§ 105-164.44C. Reimbursement for sales taxes on food stamp foods and supplemental foods.
As soon as practicable after July 1 of each year, the Secretary shall determine from available information the amount of local sales taxes that would have been collected in each county during the preceding fiscal year on foods purchased with food stamp coupons or supplemental food instruments in the county, had these foods not been exempt from tax under G.S. 105-164.13(38).  The Secretary shall then distribute ninety-five percent (95%) of the amount determined above for each county between the county and the cities located in the county in accordance with the method by which local sales and use taxes are distributed in that county.  In order to pay for the reimbursement under this section and the cost to the Department of Revenue for administering the reimbursement, the Secretary of Revenue shall draw from the Local Government Tax Reimbursement Reserve an amount equal to the amount of the reimbursement and the cost of administration."
(d)	G.S. 105-198 reads as rewritten:
"§ 105-198. Intangible personal property.
The intangible personal properties enumerated and defined in this Article or schedule are hereby classified under authority of Section 2(2), Article V of the Constitution, and the taxes levied thereon are for the benefit of the State for the General Fund and for distribution to political subdivisions of the State as hereinafter provided.  Banks or banking associations, trust companies or any combination of such facilities or services shall be subject to the provisions of this Article for taxable years beginning on and after January 1, 1974."
(e)  G.S. 105-213 reads as rewritten:
"§ 105-213. Separate records by counties; disposition and distribution of taxes collected; purpose of tax.
(a)	The Secretary of Revenue shall keep a separate record by counties of the taxes collected under the provisions of this Article and shall, as soon as practicable after the close of each fiscal year, certify to the State Disbursing Officer and to the State Treasurer the amount of such taxes to be distributed to each county and municipality in the State as provided in this section.  The State Disbursing Officer shall thereupon issue a warrant on the State Treasurer to each county and municipality in the amount so certified.
In determining the amount to be distributed, the Secretary shall deduct from the net amount of taxes collected under this Article, which is the total amount collected less refunds, the cost to the State for the preceding fiscal year to:
(1)	Collect and administer the taxes levied under this Article;
(2)	Perform the duties imposed upon the Department of Revenue by Article 15 of this Chapter;
(3)	Operate the Property Tax Commission; and
(4)	Operate a training program in property tax appraisal and assessment administration by the Institute of Government.
The Secretary shall allocate the net amount of taxes collected under this Article, less the deductions enumerated above, to the counties according to the county in which the taxes were collected.  The Secretary shall then increase the amount allocable to each county by a sum equal to forty percent (40%) of the amount of tax on accounts receivable allocated to the county on the basis of collections.  The Secretary shall then decrease the amount allocable to each county by five percent (5%).  The amounts so allocated to each county shall in turn be divided between the county and all municipalities therein in proportion to the total amount of ad valorem taxes levied by each during the fiscal year preceding such distribution.  For the purpose of computing the distribution of the intangibles tax to any county and the municipalities located therein for any year with respect to which the property valuation of a public service company is the subject of an appeal pursuant to the provisions of the Machinery Act, or to applicable provisions of federal law, and the Department of Revenue is restrained by operation of law or by a court of competent jurisdiction from certifying such valuation to the county and municipalities therein, the Department shall use the last property valuation of such public service company which has been so certified in order to determine the ad valorem tax levies applicable to such public service company in the county and the municipalities therein.
It shall be the duty of the chairman of the board of county commissioners of each county and the mayor of each municipality therein to report to the Secretary of Revenue such information as he may request for his guidance in making said allotments.  In the event any county or municipality fails to make such report within the time prescribed, the Secretary of Revenue may disregard such defaulting unit in making said allotments.  The amounts so allocated to each county and municipality shall be distributed and used by said county or municipality in proportion to other property tax levies made for the various funds and activities of the taxing unit receiving said allotment; provided, however, that a county or municipality may, without regard to any such requirement as to proportionality, use amounts so allocated and amounts allocated under G.S. 105-213.1 and distributed to the county or municipality to secure its obligation under a loan agreement entered into pursuant to the North Carolina Solid Waste Management Loan Program, Chapter 159I of the General Statutes.
(b)	For purposes of this section, the term ‘municipality' includes any urban service district defined by the governing board of a consolidated city-county, and the amounts due thereby shall be distributed to the government of the consolidated city-county."
(f)  G.S. 105-213.1 reads as rewritten:
"§ 105-213.1. Additional distribution to counties and municipalities.
(a)	Distribution. – As soon as practicable after July 1 of 1986, the Secretary of Revenue shall allocate for distribution to each county and the municipalities located in the county the amount allocated to that county from taxes levied under G.S. 105-199, 105-200, and 105-205 for the last taxable year in which these taxes were levied, plus or minus a sum that equals the product of this amount and the percentage by which State disposable personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
Thereafter, as soon as practicable after July 1 of each year through 1989, the Secretary shall allocate to each county the amount of funds allocated to the county under this section the preceding year, plus or minus a sum that equals the product of this amount and the percentage by which State disposable personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
As soon as practicable after July 1, 1990, the Secretary shall allocate to each county ninety-five percent (95%) of the amount of funds allocated to the county under this section the preceding year, plus or minus a sum that equals the product of this amount and the percentage by which State disposable personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
Thereafter, as soon as practicable after July 1 of each year, the Secretary shall allocate to each county the amount of funds allocated to the county under this section the preceding year, plus or minus a sum that equals the product of this amount and the percentage by which State disposable personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
Amounts allocated to a county under this section shall in turn be divided and distributed between the county and the municipalities located in the county in accordance with the method of allocating intangible tax revenue between a county and the municipalities located in the county provided in G.S. 105-213.
(b)	Restrictions on Use. – Amounts distributed to a county or a municipality under this section are subject to the same restrictions as amounts distributed under G.S. 105-213.
(c)	Municipality Defined. – As used in this section, the term ‘municipality' has the same meaning as in G.S. 105-213.
(d)	Source.  Funds distributed under this section shall be drawn from the Local Government Tax Reimbursement Reserve."
(g)  G.S. 105-275.1(b) reads as rewritten:
"(b)	Subsequent Distributions. – As soon as practicable after January 1, 1990, the Secretary shall pay to each county and city the amount it received under subsection (a) in 1989 plus an amount equal to the county or city average rate multiplied by the value of the items described in subdivisions (ii) and (iii) of subsection (a) that were required to be listed and assessed as of January 1, 1987, and were listed on or before September 1, 1987, in the county or city, plus or minus the percentage of this product that equals the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.  As soon as practicable after January 1, 1990, the Secretary shall also pay to each county and city an amount equal to the average rate for each special district for which the county or city collected taxes in 1987, but whose tax rates were not included in the county or city's rates, multiplied by the value of the items described in subdivisions (ii) and (iii) of subsection (a) that were required to be listed and assessed as of January 1, 1987, and were listed on or before September 1, 1987, in the district, plus or minus the percentage of this product that equals the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.  As soon as practicable after January 1, 1991, except as provided in subsection (f), the Secretary shall distribute to each county and city ninety-five percent (95%) of the amount it received under this section in 1990.  Thereafter, except as provided in subsection (f), as soon as practicable after January 1 of each year, the Secretary shall distribute to each county and city the amount it received under this section the preceding year.
Of the funds received by each county and city pursuant to this subsection in 1990, the portion that was received because the county or city was collecting taxes for a special district (either because the district's tax rate was included in the city or county's rate or because the Secretary paid the county or city the product of the district's average rate and the value of the inventories and other items in the district) shall be distributed among the districts in the county or city as soon as practicable after the city or county receives the funds.  The county or city shall distribute to each special district in the county or city the amount it distributed to the district in 1989 plus an amount equal to the average rate for the district multiplied by the value of the items, other than inventory, described in subdivisions (ii) and (iii) of subsection (a) that were required to be listed and assessed as of January 1, 1987, and were listed on or before September 1, 1987, in the district, plus or minus the percentage of this product that equals the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
Each year thereafter, as soon as practicable after receiving funds under this subsection, every county and city shall distribute among the special districts for which the county or city collects tax an amount equal to the amount it distributed among such districts the previous year. The Local Government Commission may adopt rules for the resolution of disputes and correction of errors in the distribution among special districts provided in this subsection.  In addition, the Local Government Commission may adopt rules for the reallocation of funds when a special district is dissolved, merged, or consolidated, or when a special district ceases to levy tax, either temporarily or permanently."
(h)  G.S. 105-275.1(f) reads as rewritten: 
"(f)	Correction of Errors. – If the Secretary discovers that the amount or value of any inventories or other items listed by a county or city pursuant to subsection (a) of this section was overstated or understated, the Secretary shall adjust the amount to be distributed under subsection (b) as follows.  For the distribution to be made in the year following discovery of the overstatement or understatement, the Secretary shall distribute to the county or city ninety-five percent (95%) of the amount it would have received under subsection (b) in 1990 if it had not overstated or understated the amount or value of any inventories or other items, plus ninety-five percent (95%) of the total amount it failed to receive in 1989 and subsequent years due to understatement of the amount or value of the inventories or other items, or minus ninety-five percent (95%) of the total amount it received in 1989 and subsequent years due to overstatement of the amount or value of the inventories or other items.  Thereafter, each year the Secretary shall distribute to the county or city ninety-five percent (95%) of the amount it would have received under subsection (b) in 1990 if it had not overstated or understated the amount or value of any inventories or other items."
(i)  G.S. 105-277A reads as rewritten:
"§ 105-277A.  Reimbursement for exclusion of retailers' and wholesalers' inventories.
(a)	Submission of Claims. – On or before January 15, 1989, the governing body of each county and city shall furnish to the Secretary a list of all the inventories owned by retailers and wholesalers that were required to be listed and assessed as of January 1, 1987, and were listed on or before September 1, 1987, in the county or city under this Subchapter.  The list shall contain the value of the inventories as well as the property tax rates in effect in the county or city for the eight years from 1980 through 1987.  The list shall also contain the property tax rates in effect for those years in each special district for which the county or city collected taxes in 1987 but whose tax rates were not included in the rates listed for the county or city, and the value of the inventories owned by retailers and wholesalers that were required to be listed and assessed as of January 1, 1987, and were listed on or before September 1, 1987, in that district.  The list shall be accompanied by an affidavit attesting to the accuracy of the list and shall be on a form prescribed by the Secretary.
The Secretary shall calculate an average rate for each county and city, and for each special district whose tax rates were not included in the tax rates of a county or city, as the arithmetic mean of the property tax rates in effect in the county, city, or district for the eight years from 1980 through 1987.  If a county, city, or district did not have tax rates in effect for the entire eight-year period, the average rate shall be the arithmetic mean of the property rates in effect for the years during the eight-year period that it did have rates in effect.
(b)	First Per Capita Distribution. – As soon as practicable after January 1 of 1989, the Secretary shall distribute to each taxing unit the unit's per capita share of the sum of fifteen million seven hundred forty-five thousand dollars ($15,745,000).  As soon as practicable after January 1, 1990, the Secretary shall distribute to each taxing unit the unit's per capita share of an amount equal to the sum distributed to all taxing units the previous year under this subsection plus or minus the product of the sum distributed the previous year and the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
As soon as practicable after January 1, 1991, the Secretary shall distribute to each taxing unit the unit's per capita share of ninety-five percent (95%) of an amount equal to the sum distributed to all taxing units in 1990 under this subsection plus or minus the product of the sum distributed the previous year and the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.  Thereafter, as soon as practicable after January 1 of each year the Secretary shall distribute to each taxing unit the unit's per capita share of an amount equal to the sum distributed to all taxing units the previous year under this subsection plus or minus the product of the sum distributed the previous year and the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce.
To make the per capita distributions required by this subsection, the Secretary shall first allocate the sum to be distributed among the counties on a per capita basis.  The Secretary shall then compute a per capita distributable amount for each county by dividing the amount allocated to a county by the total population of the county, plus the population of any incorporated towns and cities located in the county.  Each taxing unit in a county, including the county itself, shall receive the product of the population of the taxing unit and the per capita distributable amount for that county.
A city or county that receives funds under this subsection and that collects taxes for another taxing unit shall distribute part of the taxes received by it to the taxing unit for which it collects tax.  The distribution shall be made on the basis of the proportionate amount of ad valorem taxes levied, for the most recent fiscal year beginning July 1, by the city or county and by all the taxing units for which the city or county collects tax.  This distribution shall be made as soon as practicable after a city or county receives funds from the State under this section.
(c)	Second Per Capita Distribution. – On or before March 20, 1989, the Secretary shall allocate to each county the county's per capita share of the sum of thirty-nine million dollars ($39,000,000).
As soon as practicable after January 1, 1990, the Secretary of Revenue shall allocate to each county the amount it received the previous year under this subsection.  As soon as practicable after January 1, 1991, the Secretary of Revenue shall allocate to each county ninety-five percent (95%) of the amount it received the previous year under this subsection.  Each year thereafter, as soon as practicable after January 1, the Secretary of Revenue shall allocate to each county the amount it received the previous year under this subsection.
Amounts allocated to a county under this subsection shall in turn be divided and distributed between the county and the cities located in the county in proportion to the total amount of ad valorem taxes levied by each during the fiscal year preceding the distribution.  For the purposes of this section, the amount of the ad valorem taxes levied by a county or city shall include any ad valorem taxes collected by the county or city in behalf of a special district.  For the purpose of computing the distribution for any year with respect to which the property valuation of a public service company is the subject of an appeal and the Department of Revenue is restrained by law from certifying the valuation to the appropriate counties and cities, the Department shall use the latest property valuation of that public service company that has been certified.
The governing body of each county and city shall report to the Secretary of Revenue such information as he may request in order to make the distribution under this subsection.  If a county or city fails to make a requested report within the time prescribed, the Secretary may disregard that county or city and the other taxing units in the county or city in making the distribution.
	(c1)  Claims-based Distribution. – On or before March 20, 1989, the Secretary shall distribute to each county and city an amount equal to the amount by which the county or city's inventory loss, as defined in subsection (d) of this section, exceeds the amount of the reimbursement received by the county or city under subsection (c) of this subsection.
As soon as practicable after January 1, 1990, except as provided in subsection (g), the Secretary shall distribute to each county and city the amount it received the previous year under this subsection.   As soon as practicable after January 1, 1991, except as provided in subsection (g), the Secretary shall distribute to each county and city ninety-five percent (95%) of the amount it received the previous year under this subsection.
Except as provided in subsection (g)	of this section, each year thereafter, as soon as practicable after January 1, the Secretary shall distribute to each county and city the amount it received the previous year under this subsection.
(c2)	Supplemental Distribution. – On or before March 20, 1989, the Secretary shall determine, with respect to each county and city, whether the sum of (i) the amount the county or city received under subsection (c), plus (ii) the amount the county or city received under subsection (c1), plus (iii) three and four-tenths percent (3.4%) of the total distribution received by the county or city under G.S. 105-472, 105-486, 105-493, 105-501, and Chapter 1096 of the 1967 Session Laws between January 1, 1988, and December 31, 1988, is less than ninety percent (90%) of the amount of taxes the county or city actually levied on inventories owned by retailers and wholesalers for the 1987-88 tax year.  If that sum is less than ninety percent (90%) of the amount of taxes the county or city actually levied on those inventories for the 1987-88 tax year, the Secretary shall distribute to that county or city a supplemental amount equal to the amount by which ninety percent (90%) of the taxes it actually levied on inventories owned by retailers and wholesalers for the 1987-88 tax year exceeds the total of subdivisions (i), (ii), and (iii).
Except as provided in subsection (g)	of this section, as soon as practicable after January 1, 1990, the Secretary shall distribute to each county and city the amount it received the previous year under this subsection.  Except as provided in subsection (g) of this section, as soon as practicable after January 1, 1991, the Secretary shall distribute to each county and city ninety-five percent (95%) of the amount it received the previous year under this subsection.  Except as provided in subsection (g) of this section, each year thereafter, as soon as practicable after January 1, the Secretary shall distribute to each county and city the amount it received the previous year under this subsection.
(c3)	Distribution to Special Districts. – Of the funds received by each county and city pursuant to subsections (c), (c1), and (c2) of this section, the portion that was received because the county or city was collecting taxes for a special district shall be distributed among the districts in the county or city in proportion to the amount of each special district's inventory levy, as defined in subsection (d) of this section, as soon as practicable after the city or county receives funds under this subsection.  The Local Government Commission may adopt rules for the resolution of disputes and correction of errors in the distribution among special districts provided in this paragraph.  In addition, the Local Government Commission may adopt rules for the reallocation of funds when a special district is dissolved, merged, or consolidated, or when a special district ceases to levy tax, either temporarily or permanently.  The Local Government Commission shall report to the 1990 General Assembly any errors it discovers in the information furnished by local governments to the Secretary as required in subsection (a) of this section.
(d)	Definitions. – As used in this section, the term 
(1)	‘City' has the same meaning as in G.S. 153A-1(1);
(2)	‘City's inventory loss' means the city's average rate multiplied by eighty percent (80%) of the value of the inventories reported to the Secretary under subsection (a) of this section by the city, plus the average rate for each special district for which the city collected taxes in 1987, but whose tax rates were not included in the city's rates, multiplied by eighty percent (80%) of the value of the inventories reported to the Secretary under subsection (a) of this section in behalf of the district, plus or minus the percentage of this amount that equals the lesser of five percent (5%) or the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce, minus three and four-tenths percent (3.4%) of the total distribution received by the city under G.S. 105-472, 105-486, 105-493, 105-501, and Chapter 1096 of the 1967 Session Laws between January 1, 1988, and December 31, 1988;
(3)	‘County's inventory loss' means the county's average rate multiplied by eighty percent (80%) of the value of the inventories reported to the Secretary under subsection (a) of this section by the county, plus the average rate for each special district for which the county collected taxes in 1987, but whose tax rates were not included in the county's rates, multiplied by eighty percent (80%) of the value of the inventories reported to the Secretary under subsection (a) of this section in behalf of the district, plus or minus the percentage of this amount that equals the lesser of five percent (5%) or the percentage by which State personal income has increased or decreased during the most recent 12-month period for which State personal income data has been compiled by the Bureau of Economic Analysis of the United States Department of Commerce, minus three and four-tenths percent (3.4%) of the total distribution received by the county under G.S. 105-472, 105-486, 105-493, 105-501, and Chapter 1096 of the 1967 Session Laws between January 1, 1988, and December 31, 1988;
(4)	‘Special district's inventory levy' means the special district's average rate multiplied by eighty percent (80%) of the value of the inventories reported to the Secretary under subsection (a) of this section in behalf of the district;
(5)	‘Taxing unit' means a unit that levied a property tax or for which another unit collected a property tax for the fiscal year beginning July 1 of the year preceding the date a distribution is made under this section.
(e)	Population Estimates. – In making the per capita calculations under this section, the Secretary shall use the most recent annual population estimates certified by the State Budget Officer.
(f)	Source of Funds. – The Secretary of Revenue shall pay for the distribution required by this section and the cost of making the distribution as follows:
(1)	For the distribution made in 1989, the Secretary shall draw an amount equal to the amount distributed and the cost of making the distribution first from the Inventory Tax Reimbursement Fund created in Section 15.1 of the School Facilities Finance Act of 1987, until it is exhausted, and then the remainder of that amount from collections received by the Department under Division I of Article 4 of this Chapter.
(2)	For distributions made in subsequent years, the Secretary shall draw from the Local Government Tax Reimbursement Reserve for the distribution required by this section an amount equal to the amount distributed and the cost of making the distribution.
(g)	Correction of Errors. – If the Secretary discovers that the amount or value of any inventories listed by a county or city pursuant to subsection (a) of this section was overstated or understated, the Secretary shall adjust the amount to be distributed under subsections (c1) and (c2) as follows.  For the distribution to be made in the year following discovery of the overstatement or understatement, the Secretary shall distribute to the county or city ninety-five percent (95%) of the amount it would have received under subsections (c1) and (c2) in 1989 if it had not overstated or understated the amount or value of any inventories, plus ninety-five percent (95%) of the total amount it failed to receive in 1989 and subsequent years due to understatement of the amount or value of the inventories, or minus ninety-five percent (95%) of the total amount it received in 1989 and subsequent years due to overstatement of the amount or value of the inventories.  Thereafter, each year the Secretary shall distribute to the county or city ninety-five percent (95%) of the amount it would have received under subsections (c1) and (c2) in 1989 if it had not overstated or understated the amount or value of any inventories."
(j)  G.S. 105-277.1A(d) reads as rewritten:
"(d)	After receiving a certified list under subsections (a) through (c) of this section, the Secretary of Revenue shall, within 60 days, pay to the county or city forty-seven and five-tenths percent (47.5%) of the total for the entire list of the product obtained by multiplying the tax exemption for each taxpayer times the applicable tax rate."

Requested by:   Senator Royall
––-SCHOOL CAPITAL FUNDING FROM NONRECURRING FUNDS
Sec. 14.  (a)	It is the intent of the General Assembly that funding for the Public School Building Capital Fund and the Critical School Facility Needs Fund shall not be reduced but shall be appropriated each year from nonrecurring revenue in the same manner as funding for other capital projects.  Each year, the Public School Building Capital Fund and the Critical School Facility Needs Fund shall have first priority, ahead of all other capital projects, for appropriations of nonrecurring revenue.
(b)	G.S. 115C-546.1 reads as rewritten:
"§ 115C-546.1.  Creation of Fund; administration.
(a)	There is created the Public School Building Capital Fund.  The Fund shall be used to assist county governments in meeting their public school building capital needs.
(b)	All funds deposited in the Public School Building Capital Fund shall be invested as provided in G.S. 147-69.2 and G.S. 147-69.3.
	(c)	The Fund shall be administered by the Office of State Budget and Management."
(c)	G.S. 115C-489.1(b) reads as rewritten:
"§ 115C-489.1.  Creation of fund; administration.
(a)	There is created the Critical School Facility Needs Fund.
(b)	
All funds deposited in the Critical School Facility Needs Fund shall be invested as provided in G.S. 147-69.2 and G.S. 147-69.3.
(c)	The Fund shall be administered by the State Board of Education.  Monies in the Fund shall be used only for the purposes specified in this Article."
(d)	This section shall become effective July 1, 1990.

Requested by:   Senator Royall
––-MAIL ORDER SALES TAX TO GENERAL FUND
Sec. 15.  Effective June 30, 1990, Section 56 of Chapter 1086 of the 1987 Session Laws is repealed.  All State sales and use tax proceeds in the State Special Revenue Fund created in Section 56 of Chapter 1086 of the 1987 Session Laws shall be credited to the General Fund.  All local sales and use tax proceeds in the Local Special Revenue Fund created in Section 56 of Chapter 1086 of the 1987 Session Laws shall be distributed to local governments in accordance with Articles 39, 40, 41, and 42 of Chapter 105 of the General Statutes and in accordance with Chapter 1096 of the 1967 Session Laws.

PART VIII.––-DEPARTMENT OF SECRETARY OF STATE

Requested by:   Senator Martin of Guilford
––-REPEAL OF STATEWIDE VOTER FILE
Sec. 16.  G.S. 163-66.1 is repealed.

PART IX.––-EMPLOYEE SALARIES AND BENEFITS

Requested by:   Senator Royall
––-FREEZE VACANT POSITIONS FOR FISCAL YEAR 1990-91
Sec. 17.  (a) There is created a negative General Fund reserve for fiscal year 1990-91 of $40,000,000 in the Office of State Budget and Management.
The Office of State Budget and Management is directed to manage quarterly allotments so as to maximize savings from the General Fund for fiscal year 1990-91 by not filling vacancies (i) in positions that have never been filled or (ii) caused by resignation or retirement, unless the Governor has determined that there is a critical need to fill the vacancies.  These actions shall result in savings of at least $40,000,000 from the General Fund for the 1990-91 fiscal year.
This section applies to State government, to State-funded positions in the community college system, and to State-funded positions in the public school system, but it does not apply to any teaching position with classroom responsibilities in the public school system, the community college system, and The University of North Carolina system.
(b) The Office of State Budget and Management shall make every effort to allocate the freeze equitably based on the vacant position report used by the Senate Appropriations Committee in selecting this reduction and, at the same time, protecting critical vacant positions needed in the State's institutions and prisons.

PART X.––-DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Requested by:   Senator Martin of Pitt
––-LUMBER RIVER PARK RANGER
Sec. 18.  Section 155 of Chapter 752 of the 1989 Session Laws reads as rewritten:
	"Sec. 155.  From the funds appropriated to the Department of Environment, Health, and Natural Resources, Division of Parks and Recreation for the 1990-91 fiscal year for State Park Staff, the Department shall establish and fund one Park Ranger position, including support and equipment costs, to be allocated to the Lumber River State Park."

Requested by:   Senator Plyler
––-UNION FIRE PLOW OPERATOR/COUNTY RANGERS
Sec. 19. (a)	The Department of Environment, Health, and Natural Resources shall continue to station in Union County the fire plow that was purchased with Federal Emergency Management Administration (FEMA) funds.  While stationed in Union County, this fire suppression unit shall serve the areas of the Mt. Holly District.
(b)	The Department of Environment, Health, and Natural Resources shall use available funds, including lapsed salaries and other sources, not to exceed the sum of $83,298 for the 1990-91 fiscal year for the following positions:
(1)	The sum of $41,649 for a County Ranger and Assistant Ranger for Union County, to be matched by the sum of $27,766 in county funds; and
(2)	The sum of $41,649 for a County Ranger and Assistant Ranger for Mecklenburg County, to be matched by the sum of $27,766 in county funds.
(c)	The Department of Environment, Health, and Natural Resources shall use available funds, including lapsed salaries and other sources, not to exceed the sum of $33,523 for the 1990-91 fiscal year for an operator and crew for the fire plow that is stationed in Union County pursuant to subsection (a) of this section.
(d)	Subsection (c) of this section shall become effective October 1, 1990.

Requested by:   Senator Martin of Pitt
––-USE OF LAPSED SALARIES
Sec. 20.  (a)	The Office of State Budget may authorize the Department of Environment, Health, and Natural Resources to use the sum of $110,615 in departmental lapsed salaries for the Air Quality Section, Division of Environmental Management, to correct an error in the budgeting of federal receipts for fiscal year 1990-91.
(b)	The Office of State Budget may authorize the Department of Environment, Health, and Natural Resources to use the sum of $212,178 in departmental lapsed salaries for the Water Quality Section, Division of Environmental Management, to correct an error in the budgeting of federal receipts for fiscal year 1990-91.

Requested by:   Senator Martin of Pitt
––-BUXTON WOODS PURCHASE FUNDS
Sec. 21.  Funds deposited pursuant to G.S. 20-81.3(c) in the Recreation and Natural Heritage Trust Fund may be used during the 1990-91 fiscal year to match federal funds for the purchase of land at Buxton Woods.

Requested by:   Senator Martin of Pitt 
––-WASTE STREAM ANALYSIS
Sec. 22.  Section 34 of Chapter 754 of the 1989 Session Laws, as rewritten by Section 28 of Chapter 799 of the 1989 Session Laws, reads as rewritten:
"Sec. 34.  Of the funds allocated from the Special Reserve for Oil Overcharge Funds to the North Carolina Housing Trust Fund in Section 2 of Chapter 841 of the 1987 Session Laws, the sum of $500,000 shall be reallocated to the Department of Economic and Community Development for the 1989-90 fiscal year to be used for a study including a waste stream analysis and the development of a State and local government recycling and waste management plan by the Department of Environment, Health, and Natural Resources.  This study shall be contracted out by the Secretary of the Department of Environment, Health, and Natural Resources 	no later than November 15, 1990.  
				The Secretary of the Department of Environment, Health, and Natural Resources shall solicit matching funds from non-State entities.
The waste stream analysis shall include a representative sample of waste disposal sites that considers such regional and county specific variables as topography, population, agriculture, industry, and economic base.  The study shall be designed so that a statewide waste stream can be statistically defined.  The analysis shall identify components and quantities of the materials in the State's waste stream and the recyclability of these components.
Based on the findings of the waste stream analysis, the study shall develop a State and local government recycling and waste management plan as set forth in G.S. 130A-309.07 and G.S. 130A-309.09.  The plan shall also address the following:
(1)	Strategies for recycling or managing each of the waste streams identified;
(2)	Development of recycling plans, which may include  the marketing of guaranteed waste streams, to meet the State's goal of recycling twenty-five percent (25%) of the State's waste stream by 1993; and
(3)	Development of county or regional waste stream profiles that shall be used for the development of model recycling plans for cities, towns, counties, and regions of the State.
The North Carolina Housing Finance Agency shall transfer the funds reallocated by this subsection to the Department of Economic and Community Development no later than September 1, 1989.
The Department of Environment, Health, and Natural Resources shall provide all information requested by the Department of Economic and Community Development for the report the Department of Economic and Community Development is required to make pursuant to Section 150(c)	of Chapter 752 of the 1989 Session Laws.  A final report of the waste stream analysis and the State and local government recycling and waste management plan shall be issued by the contractor to the Secretary of the Department of Environment, Health, and Natural Resources and the General Assembly no later than May 1, 1991."

Requested by:   Senator Martin of Pitt
––-ENVIRONMENTAL HEALTH PROGRAMS
Sec. 23.  Section 142 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 142.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources, Environmental Health Division, for the 1989-90 fiscal year the sum of $300,000 shall be used for the purpose of providing high quality environmental health programs.
These funds shall be allocated equally among the 100 counties."

Requested by:   Senator Barker
––-WILDLIFE COMMISSION FUNDS
Sec. 24.  (a)	The Wildlife Resources Commission may use up to $235,000 in funds available to the Commission for the 1990-91 fiscal year for construction of a boating access area at Cedar Island in Carteret County.
(b)	The Wildlife Resources Commission may use up to $45,000 in funds available to the Commission for the 1990-91 fiscal year for construction of a boating access area at Ocracoke Island in Hyde County.
(c)	Section 38 of Chapter 754 of the 1989 Session Laws reads as rewritten:
"Sec. 38.  The Wildlife Resources Commission may use no more than $315,000 for the 1990-91 fiscal year to repair the dam at the Lake Rim Fish Hatchery in Cumberland County."
(d)	Section 31 of Chapter 1100 of the 1987 Session Laws reads as rewritten:
"Sec. 31.  The Wildlife Resources Commission may use funds available to it for the 1990-91 fiscal year for the construction of a visitor center at Pisgah Forest Fish Hatchery.  The cost of the construction shall not exceed one hundred fifty-six thousand dollars ($156,000).  The Wildlife Resources Commission shall report to the Joint Legislative Commission on Governmental Operations on its plans before spending any funds on this project."

Requested by:   Senator Barker
––-WILDLIFE COMMITTEE EXPENSES
Sec. 25.  G.S. 113-335 reads as rewritten:
"§ 113-335.  North Carolina Nongame Wildlife Advisory Committee.
The North Carolina Nongame Wildlife Advisory Committee is created subject to constitution, organization, and function as determined appropriate and advisable by resolution of the Wildlife Resources Commission.  The Advisory Committee is to be comprised of knowledgeable and representative citizens of North Carolina whose responsibility shall be to advise the Commission on matters related to conservation of nongame wildlife including creation of protected animal lists and development of conservation programs for endangered, threatened, and special concern species.
Members of the Advisory Committee shall receive necessary travel and subsistence expenses while on official business of the Committee in accordance with G.S. 138-5 and G.S. 138-6, to be paid from the Nongame Account of the Wildlife Resources Fund."

Requested by:   Senator Martin of Pitt
––-LIABILITY INSURANCE FOR HEALTH CARE EMPLOYEES
Sec. 26.  Section 129 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 129.  The Secretary of the Department of Human Resources, the Secretary of the Department of Environment, Health, and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed $1,000,000 on behalf of employees of the Departments licensed to practice medicine or dentistry.  This coverage may include commercial insurance or self-insurance and shall cover these employees for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment.
The coverage provided pursuant to this section shall not require any additional appropriations and shall not apply to any individual providing contractual service to the Department of Human Resources, the Department of Environment, Health, and Natural Resources, or the Department of Correction."

Requested by:   Senator Martin of Pitt
––-EPIDEMIOLOGY LINE ITEM TRANSFERS
Sec. 27.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources, Communicable Disease Control Section, amounts may be transferred from the Immunization Branch pharmaceutical line item for the 1990-91 fiscal year as follows: $188,389 to the Immunization Branch salary and fringe benefits line item; $37,100 to the Immunization Branch supplies and printing line item; and $39,891 to the Immunization Branch travel line item.

Requested by:   Senator Martin of Pitt
––-STATEWIDE MEDICAL EXAMINER FUNDS
Sec. 28.  Section 138 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 138.  The Department of Environment, Health, and Natural Resources may budget for the 1990-91 fiscal year up to $250,000 of excess federal indirect cost receipts to complete and equip the Statewide Medical Examiner System."

Requested by:   Senator Martin of Pitt
––-NON-MEDICAID REIMBURSEMENT
Sec. 29.  Section 105 of Chapter 500 of the 1989 Session Laws reads as rewritten:
"Sec. 105.  Providers of medical services under the various State programs other than Medicaid offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Human Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days.  When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Maximum net family annual income eligibility standards for services in these programs with the exception of Migrant Health, School Health, AIDS Drug Reimbursement Program, and Home Health shall be as follows:
Family	Medical Eye	All
Size	Kidney	Care Adults	Rehabilitation	Other
1	$6,400	$4,860	$ 8,364	$4,200
2	 8,000	 5,940	 10,944	 5,300
3	 9,600	 6,204	 13,500	 6,400
4	11,000	 7,284	 16,092	 7,500
5	12,000	 7,824	 18,648	 7,900
6	12,800	 8,220	 21,228	 8,300
7	13,600	 8,772 	 21,708	 8,800
8	14,400	 9,312	 22,220	 9,300
The eligibility level each fiscal year for outpatient services for all clients and for inpatient services for children under the age of five in the Children's Special Health Services Program shall be one hundred percent (100%) of the federal poverty guidelines as revised annually by the United States Department of Health and Human Services, in effect on July 1, of each fiscal year.  The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind shall be the same as that for children in the Children's Special Health Services Program."

Requested by:   Senator Martin of Pitt
––-REDUCE INFANT MORTALITY
Sec. 30.  (a)	Of the funds appropriated from the General Fund to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, the sum of $300,000 for the 1990-91 fiscal year shall be used to expand the Rural Obstetrical Care Incentive Program established under Section 39.3 of Chapter 1100, 1987 Session Laws, Regular Session 1988.  The Rural Obstetrical Care Incentive Program will be used to assist with the cost of  malpractice insurance for family physicians, obstetricians, and certified nurse midwives who agree to provide prenatal and obstetrical services in medically underserved areas of the State.  Physicians and certified nurse midwives covered under the Rural Obstetrical Care Incentive Program are required to participate in an obstetrical care coverage plan developed by their local health department or community, migrant, or rural health center, and must agree to provide services to pregnant women regardless of their ability to pay for the services.
(b)	The Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, shall report to the Joint Legislative Commission on Governmental Operations in December 1990 about the feasibility of setting up a nurse midwifery education program in North Carolina.
(c)	The Department of Environment, Health, and Natural Resources and the Department of Human Resources shall conduct a needs assessment in each county to determine the availability of prenatal care and necessary supportive services to pregnant women.  The assessment shall include the availability of Women, Infants, and Children nutritional supplements, and maternity care coordination.  The assessment shall also determine the extent to which the lack of such services impacts on low birthweight and infant mortality in the county.  The Departments shall report their findings to the Joint Legislative Commission on Governmental Operations on March 15, 1991.

PART XI.––-DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Requested by:   Senator Martin of Pitt.
––-ECONOMIC DEVELOPMENT PUBLICATIONS
Sec. 31.  G.S. 143B-435 reads as rewritten:
"§ 143B-435.  Publications.
The Department of Economic and Community Development may also cause to be prepared for publication, from time to time, reports and statements, with illustrations, maps and other descriptions, which may adequately set forth the natural and material resources of the State and its industrial and commercial developments, with a view to furnishing information to educate the people with reference to the material advantages of the State, to encourage and foster existing industries, and to present inducements for investment in new enterprises.  Such information shall be published and distributed as the Department of Economic and Community Development may direct.  The costs of publishing and distributing such information shall be paid from:
(1)	State funds as other public documents; or
(2)	Private funds received:
a.	As donations, or
b.	From the sale of appropriate advertising in such published information."

Requested by:   Senator Martin of Pitt
––-NORTH CAROLINA MANUFACTURING DIRECTORY PROCEEDS
Sec. 32.  (a)	All the proceeds from the sales of the North Carolina Manufacturing Directory collected by the Department of Economic and Community Development in excess of the cost of publishing the Directory shall be allocated as follows:
(1)	The sum of $50,000 shall be deposited in the General Fund for the 1990-91 fiscal year; and
(2)	The remaining funds shall be retained by the Department for the 1990-91 fiscal year for advertising for industrial recruitment.
(b)	Beginning October 1, 1990, the Department shall submit quarterly reports to the Chairmen of the Senate and House Appropriations Committees  and to the Director of the Fiscal Research Division.  These reports shall include the amount of proceeds collected from the sales of the Directory and the amount spent on advertising pursuant to the provisions of this section.

Requested by:   Senator Martin of Pitt
––-WORKER TRAINING TRUST FUND
Sec. 33.  (a) Section 149 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 149.  (a)	There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of $1,200,000 for the 1989-90 fiscal year for a Worker Readjustment Program to provide a statewide program of rapid response to plant closings.  Funds appropriated by this section for the 1989-90 fiscal year but not spent or encumbered by June 30, 1990, shall be reallocated to the North Carolina Department of Economic and Community Development for the 1990-91 fiscal year for a State job training program to be administered through the Job Training Partnership Act system and aimed at the unemployed and the working poor.
(b)	The Employment Security Commission shall report quarterly to the Joint Legislative Commission on Governmental Operations.  The report required by this subsection may be included in any other report that the Employment Security Commission is required to make to the Joint Legislative Commission on Governmental Operations.
(c)	The Employment Security Commission shall use supplemental federal funds or other additional funds received by the Employment Security Commission for similar purposes before expending funds appropriated by this section."
(b)	Section 111 of Chapter 500 of the 1989 Session Laws reads as rewritten:
"Sec. 111. (a)	There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of four million five hundred thirty-seven thousand seven hundred eight dollars ($4,537,708) for the 1989-90 fiscal year and the sum of $5,000,000 for the 1990-91 fiscal year for the operation of local offices at the 1986-87 level of service.
(b)	Notwithstanding G.S. 96-5(c), there is appropriated from the Special Employment Security Administration Fund to the Employment Security Commission of North Carolina, the sum of one million dollars ($1,000,000) for the 1989-90 fiscal year and the sum of $2,000,000 for the 1990-91 fiscal year for administration of the Veterans Employment Program, Employment Services Program, and Unemployment Insurance Program.
(c)	Beginning October 1, 1989, the Employment Security Commission shall report to the Appropriations Committee on Natural and Economic Resources and the Joint Legislative Commission on Governmental Operations on a quarterly basis.  Supplemental federal funds or other additional funds received by the Employment Security Commission for similar purposes shall be expended prior to the expenditure of funds appropriated by this section."
(c) Notwithstanding the provisions of G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the following agencies the following sums for the 1990-91 fiscal year for the following purposes:
(1)	The sum of $2,000,000, less the sum reallocated in subsection (a) of this section, to the North Carolina Department of Economic and Community Development for a State job training program to be administered through the Job Training Partnership Act system aimed at the unemployed and the working poor.
(2)	The sum of $250,000 to the North Carolina Department of Public Education for local implementation grants to establish five new Tech Prep programs in the public schools.  These grants shall be provided to local school units that have a plan meeting the standards of the State Board of Education and the State Board of Community Colleges.
(3)	The sum of $500,000 to the North Carolina Department of Labor for customized training of the hard-core unemployed for specific jobs needed by employers through the Department's Pre-Apprenticeship Division.
(4)	The sum of $2,000,000 to the North Carolina Department of Human Resources to assist welfare recipients in gaining employment through the federally funded Job Opportunities and Basic Skills program in such a way as to gain the maximum match of federal funds for the State dollars appropriated.
(d)	Notwithstanding the provisions of G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the Employment Security Commission for the 1990-91 fiscal year the sum of $1,459,673 for operation of local offices. 
(e)  Subsection (d) of this section shall become effective October 1, 1990.

Requested by:   Senator Martin of Pitt
––-RURAL ECONOMIC DEVELOPMENT CENTER
Sec. 34.  Section 110 of Chapter 500 of the 1989 Session Laws, as amended by Section 64 of Chapter 770 of the 1989 Session Laws, reads as rewritten:
"Sec. 110. (a)	Of the funds appropriated to the Department of Economic and Community Development, the sum of two million dollars ($2,000,000) for fiscal year 1989-90 and the sum of one million nine hundred forty thousand dollars ($1,940,000) for fiscal year 1990-91 shall be used for a grant-in-aid to the Rural Economic Development Center, Inc., for the administrative costs of the Center and for its pilot projects and research.  No more than five hundred thousand dollars ($500,000) of the funds appropriated for each fiscal year may be used for the administrative costs of the Rural Economic Development Center, Inc.
(b)	Beginning October 1, 1989, the Rural Economic Development Center, Inc., shall provide quarterly reports on the Center's pilot projects and research program to the Chairmen of the House Appropriations Committees on Natural and Economic Resources, the Chairman of the Senate Appropriations Committee on Natural and Economic Resources, The Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division not less than 48 hours prior to the beginning of the Commission's full meeting.  These reports shall include information of the activities and accomplishments during the past fiscal year, itemized expenditures during the past fiscal year, sources of funding for the past and prospective fiscal years, and planned activities and planned expenditures for at least the next fiscal year.
(c)	The Rural Economic Development Center, Inc., shall provide a report containing detailed budget, personnel, and salary information to the Office of State Budget and Management in the same manner as State departments and agencies in preparation for biennium budget requests."

Requested by:   Senator Martin of Pitt
––-CELEBRATION FOUNDATION, INC.
Sec. 35.  Section 30 of Chapter 799 of the 1989 Session Laws reads as rewritten:
"Sec. 30.  The Department of Economic and Community Development may continue for the 1989-91 biennium the development and implementation of North Carolina Celebration 1991 Foundation, Inc. activities, a series of activities and events which are scheduled to occur across the State in 1991 to demonstrate local history and heritage, promote travel to the State, and establish a permanent privately funded foundation for programs to address persistent issues in our State including adult illiteracy, infant mortality, environmental awareness, housing, and others."

Requested by:   Senator Johnson of Wake
––-HOUSING PARTNERSHIP
Sec. 36.  G.S. 122E-4(b) reads as rewritten:
	"(b)	The Partnership shall consist of 18 members as follows:
(1)	The Executive Director of the North Carolina Housing Finance Agency shall serve ex officio;
(2)	The Secretary of the Department of Economic and Community Development or his designee shall serve ex officio;
(3)	The State Treasurer or his designee shall serve ex officio;
(4)	In accordance with G.S. 120-121, five members shall be appointed by the General Assembly upon the recommendation of the President of the Senate, provided that one member shall be a representative of the homebuilding industry, one member shall be a low income housing advocate, and one member shall be a representative of the League of Municipalities;
(5)	In accordance with G.S. 120-121, five members shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, provided that one member shall be a representative of the real estate lending industry; one member shall be a representative of a non-profit housing development corporation; and one member shall be a resident of low income housing;
(6)	In accordance with G.S. 120-121, five members shall be appointed by the General Assembly upon the recommendation of the president pro tempore of the Senate, provided that one member shall be a representative of the manufactured housing industry, one member shall be a representative of the County Commissioners, and one member shall be an expert in subsidized housing development.
The members of the Partnership shall elect one of their members to serve as Chairman for a term of one year.  Ten members of the Partnership shall constitute a quorum.  All members shall have the right to vote on all issues before the Partnership."

PART XII.––-DEPARTMENT OF HUMAN RESOURCES

Requested by:   Senator Walker
––-MEDICAID PROGRAM FUNDS/ADMINISTRATIVE ACTIVITIES
Sec. 37.  The Department of Human Resources may use Medicaid funds budgeted from program services to support the cost of administrative activities to the extent that these administrative activities produce a net savings in services requirements.  Administrative initiatives funded by this section shall be first approved by the Office of State Budget and Management.

Requested by:   Senator Walker
––-EMERGENCY ASSISTANCE FUNDS
Sec. 38.  The Secretary of the Department of Human Resources may use funds available within the Department for the 1990-91 fiscal year to fund the Emergency Assistance Program  to a level not to exceed a total of $1,384,117 of State funds.  Within this limit, Emergency Assistance benefits shall not exceed $300.00 per year, per family, payable over a 30-day period.  After this 30-day period, Emergency Assistance benefits are not available to the same family until 12 months have elapsed from the date of the initial authorization date.  The family may have no more than a total of $300.00 in liquid assets in order to qualify for any Emergency Assistance pursuant to this section.
It is the intent of the General Assembly that these Emergency Assistance funds shall be used only to provide assistance to persons to alleviate an emergency.  In evaluating whether an emergency exists, the county departments of social services shall apply prudent judgment to evaluate each emergency on its own merits.  Prudent judgment permits departments of social services to consider whether the client created the emergency and whether the assistance will resolve the emergency.

Requested by:   Senator Walker
––-DHR PROGRAMS FUNDS
Sec. 39.  Notwithstanding the provisions of G.S. 143-23, the Secretary of the Department of Human Resources, with the approval of the Office of State Budget and Management, may use, to the extent possible, any funds appropriated or otherwise available to the Department in the 1990-91 fiscal year, for the following needs, pursuant to the Governor's recommended changes to the 1990-91 State Budget:
(1)	Aid to Families with Dependent Children Caseload Increase/FFP Reduction;
(2)	Job Opportunities and Basic Skills Training Program (JOBS);
(3)	Foster Care Caseload increase; and
(4)	State/County Special Assistance for Adults Program (Rest Homes.)

Requested by:   Senator Walker
––-MEDICAID SERVICES COVERAGE CHANGE
Sec. 40.  (a)	Section 70(a) of Chapter 500 of the 1989 Session Laws, as amended by Section 139(a) of Chapter 752 of the 1989 Session Laws, reads as rewritten:
"(a)	Appropriations in Section 3 of this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy.  Funds appropriated for these services shall be expended in accordance with the following schedule of services and payment bases.  All services and payments are subject to the language at the end of this subsection.

Services and payment bases:
(1)	Hospital-Inpatient - Payment for hospital inpatient services will be based on a prospective rate reimbursement plan as established by the Department of Human Resources.  Administrative days for any period of hospitalization shall be limited to a maximum of three days.
(2)	Hospital-Outpatient - Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Human Resources.
(3)	Mental Hospitals - Allowable costs or a prospective reimbursement if approved by the Director of the Budget.
(4)	 Skilled Nursing Facilities and Intermediate Care Facilities - Prior to October 1, 1990, as prescribed under the State Plan for reimbursing Long-Term Care Facilities.  Skilled nursing facility participation in the Medicare program is a condition of participation in the North Carolina Medicaid skilled nursing facility program.  Effective October 1, 1990, skilled nursing facilities and intermediate care facilities, except those intermediate care facilities for the mentally retarded, will be designated for Medicaid purposes as nursing facilities.  Nursing facilities will be reimbursed as prescribed under the State Plan for reimbursing Long-Term Care Facilities.  Nursing facilities providing services to Medicaid recipients who also qualify for Medicare, must be enrolled in the Medicare program as a condition of participation in the Medicaid program, subject to phase-in certification for those nursing facilities not already enrolled in Medicare.
(5)	Intermediate Care Facilities for the Mentally Retarded - As prescribed under the State Plan for reimbursing intermediate care facilities for the mentally retarded.
(6)	Drugs - Drug costs as allowed by federal regulations plus four dollars twenty-four cents ($4.24) professional services fee per month excluding refills for the same drug or generic equivalent during the same month.  Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills.  Payments for drugs are subject to the provisions of subsection (g) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with a plan adopted by the Department of Human Resources consistent with federal reimbursement regulations.
(7)	Physicians, Chiropractors, Podiatrists, Optometrists, Dentists, Certified Nurse Midwife Services - Fee schedules as developed by the Department of Human Resources.  Payments for dental services are subject to the provisions of subsection (f) of this section.
(8)	Community Alternative Program, EPSDT Screens - Payment to be made in accordance with a rate schedule developed by the Department of Human Resources.
(9)	Home Health, Private Duty Nursing, Clinic Services, Prepaid Health Plans - Payment to be made according to reimbursement plans developed by the Department of Human Resources.
(10)	Medicare Buy-In - Social Security Administration premium.
(11)	Ambulance Services - Uniform fee schedules as developed by the Department of Human Resources.
(12)	Hearing Aids - Actual cost plus a dispensing fee.
(13)	Rural Health Clinic Services - Provider based - reasonable cost; nonprovider based - single cost reimbursement rate per clinic visit.
(14)	Family Planning - Negotiated rate for local health departments.  For other providers - see specific services, for instance, hospitals, physicians.
(15)	Independent Laboratory and X-Ray Services - Uniform fee schedules as developed by the Department of Human Resources.
(16)	Optical Supplies - One hundred percent (100%) of reasonable wholesale cost of materials.
(17)	Ambulatory Surgical Centers - Negotiated rates, established by the Department of Human Resources.
(18)	Medicare Crossover Claims - Actual coinsurance or deductible or both.
(19)	Physical Therapy and Speech Therapy - Services limited to EPSDT eligible children.  Payments are to be made only to the Children's Special Health Services program at rates negotiated by the Department of Human Resources.
(20)	Personal Care Services - Payment in accordance with plan approved by the Department of Human Resources.
(21)	Case Management Services - Reimbursement in accordance with the availability of funds to be transferred within the Department of Human Resources.
(22)	Hospice - Services may be provided in accordance with plan developed by the Department of Human Resources.
(23)	Mental Health Services - Coverage is limited to agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services and reimbursement is made according with a plan developed by the Department of Human Resources not to exceed the upper limits established in federal regulations.
(24)	Medically Necessary Prosthetics/Orthotics for EPSDT Eligible Children - Reimbursement in accordance with plan approved by the Department of Human Resources.
Reimbursement is available for up to 24 visits per recipient per year to any one or combination of the following: physicians, clinics, hospital outpatient, optometrists, chiropractors, and podiatrists.  Prenatal services, all EPSDT eligible children, and emergency rooms are exempt from the visit limitations contained in this paragraph.  Exceptions may be authorized by the Department of Human Resources where the life of the patient would be threatened without such additional care.  Any person who is determined by the Department to be exempt from the 24-visit limitation may also be exempt from the six-prescription limitation."
(b)	This section does not repeal Section 139(b) of Chapter 752, Session Laws of 1989, which may become effective as provided therein.

Requested by:   Senator Walker
––-INFANT MORTALITY REDUCTION
Sec. 41.  (a) The Division of Medical Assistance shall develop a statewide plan to inform Medicaid recipients about the availability of transportation, to determine the extent to which each local department of social services provides Medicaid transportation when requested, and to ensure that each local department provides Medicaid transportation.  In gathering this information and designing the plan, the Division shall consult with other public and private agencies that work with Medicaid patients who need transportation services.
(b)	The Department of Human Resources shall establish a Food Stamp Outreach Program.  Under the Program, the Department shall inform public and private agencies, community groups, potentially-eligible persons, and the general public regarding the eligibility requirements of the Food Stamp Program.  The Department shall develop a referral list of public and private agencies, community groups, and interested persons and organizations who serve low-income persons. The Department shall inform these agencies and persons regarding the Food Stamp Program and changes in the law that affect client eligibility or the extent of benefits.  The Department shall develop and distribute informational materials, such as public service announcements, brochures, pamphlets, posters, and correspondence.

Requested by:   Senator Walker
––-REVISED MEDICAID COVERAGE FOR PREGNANT WOMEN AND CHILDREN
Sec. 42.  Section 70(m) of Chapter 500 of the 1989 Session Laws, as rewritten by Section 133 of Chapter 752 of the 1989 Session laws, reads as rewritten:
"(m)	The Department of Human Resources shall provide Medicaid coverage to pregnant women, to infants, and to children according to the following schedule:
	(1)	Effective January 1, 1990, to September 30, 1990, pregnant women with incomes equal to or less than one hundred fifty percent (150%) of the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits;
(2)	Effective October 1, 1990, pregnant women with incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits.
	(3)	Effective January 1, 1990, to September 30, 1990, infants under the age of one with family incomes equal to or less than one hundred fifty percent (150%) of the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits;
(4)	Effective October 1, 1990, infants under the age of 1 with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each July 1, shall be covered for Medicaid benefits.
(5)	Effective October 1, 1989, through September 30, 1990, children aged 1 through 5 with family incomes equal to or less than the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits;
(6)	Effective October 1, 1990, children aged 1 through 5 with family incomes equal to or less than one hundred thirty-three percent (133%) of the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits.
(7)	Effective October 1, 1990, children aged 6 and 7 with family incomes equal to or less than the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits;
				Services to pregnant women eligible under this section continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy.  In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children eligible under this section, no resources test shall be applied."

Requested by:   Senators Royall and Walker
––-USE OF OVERREALIZED RECEIPTS FOR PIONEER PROJECT
Sec. 43.  Notwithstanding the provisions of G.S. 143-23, the Secretary of the Department of Human Resources, with the approval of the Office of State Budget and Management, may use overrealized receipts and other sources of funds during the 1990-91 fiscal year to continue the statewide implementation of the Pioneer Funding Project.

Requested by:   Senator Walker
––-WILLIE M. REPORTING CHANGE
Sec. 44.  Section 82(e) of Chapter 500 of the 1989 Session Laws reads as rewritten:
"(e)	Reporting Requirements.  The Department of Human Resources and the Department of Public Education shall submit, by May 1, 1991, a joint report to the Governor and the General Assembly on the progress achieved in serving members of the Willie M. Class.  The report shall include the following unduplicated data for each county:  (i)	the number of children nominated for the Willie M. Class;  (ii)  the number of children actually identified as members of the Class in each county;  (iii)  the number of children served as members of the Class in each county;  (iv)  the number of children who remain unserved;  (v)	the types and locations of treatment and education services provided to Class members;  (vi)  the cost of services, by type, to members of the Class;  (vii)  information on the impact of treatment and education services on members of the Class."

Requested by:   Senator Walker
––-EASTERN REGIONAL DETOXIFICATION FUNDS CHANGE
Sec. 45.  Section 124 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 124.  Funds appropriated to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 1990-91 fiscal year for Eastern Regional Detoxification Services shall be allocated to the Division's Eastern Regional Office and distributed to area mental health, mental retardation, and substance abuse authorities."

Requested by:   Senator Walker
––-CHRONICALLY MENTALLY ILL FUNDS ALLOCATION
Sec. 46.  Funds appropriated to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 1990-91 fiscal year for the chronically mentally ill shall be allocated to the Department's regions on a per capita basis and distributed by the regional offices to the area mental health, mental retardation, and substance abuse authorities.

Requested by:   Senator Walker
––-ADAP TRANSPORTATION REIMBURSEMENT
Sec. 47.  Section 84 of Chapter 500 of the 1989 Session Laws reads as rewritten:
"Sec. 84. (a)	Reimbursement of Adult Developmental Activity Programs for transportation of clients shall be based on a cost per client basis.  There shall be different levels of reimbursement based on documented cost levels.
(b)	In reimbursing Adult Developmental Activity Programs, the Department shall base the reimbursement on the distribution by cost range developed by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, in accordance with its most recently conducted cost study."

Requested by:   Senator Walker
––-SPECIALIZED RESIDENTIAL CENTERS' BED CONVERSIONS
Sec. 48.  Section 125 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 125.  Funds made available as a result of the conversion of State supported beds in specialized residential centers to ICF/MR beds shall be used to increase the State subsidy provided to centers.  Funds made available to centers by this section shall be used, as they become available, to increase the subsidy rate to sixty-five percent (65%) of the statewide average cost of providing this service based on the most recent Specialized Community Residential Cost Study.
Funds made available in addition to those needed to increase the subsidy rate shall be transferred to the Division of Medical Assistance to be used as State match for the converted ICF/MR beds."

Requested by:   Senator Walker
––-DHR PLANNING FUNDS
Sec. 49.  The Department of Human Resources may use funds that become available to it through gifts, federal or private grants, receipts from federal programs, or any other source, including lapsed salaries, in the 1990-91 fiscal year, for advance planning through the working drawings phase for a psychiatric facility at John Umstead Hospital.

Requested by:   Senator Royall
––-AUTISM SOCIETY FUNDS
Sec. 50.  Of the funds appropriated from the General Fund for the 1990-91 fiscal year, $345,960 shall be allocated to the Autism Society of North Carolina, Inc., to continue the State grant for operations and for stipends for the autistic children's and adults' summer camp.

Requested by:   Senator Royall
––-BUDGET REQUIRED TO INCLUDE STATE COST OF LOCAL PROGRAMS
Sec. 51.  Effective July 1, 1991, the Office of State Budget and Management and the Director, with the advice of the Commission, shall prepare the State budget in a format that adequately and fairly reflects the continuation costs for the State's share of locally operated programs established by statute or State appropriation.  These continuation costs shall be computed using the same budget preparation guidelines and rules prepared by the Office of State Budget and Management for use in State agency and institution budgets.  Furthermore, in the projections for the expansion costs related to employee compensation, the budget shall include the expansion costs necessary to cover the State's share of salary and salary-related items for employees in locally operated State-funded programs.  Local governments or organizations spending State funds to operate local programs shall provide necessary information to the Office of State Budget and Management to establish the necessary continuation and expansion costs.

Requested by:   Senator Walker
––-CUED SPEECH FUNDS LIMITS
Sec. 52.  Section 140 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 140.  Of the funds appropriated to the Department of Human Resources for the 1989-90 fiscal year the sum of $50,000 shall be allocated to the Cued Speech Center, Incorporated, in Wake County to establish and operate a preschool deaf education program that will include a model center in two triangle areas of the State, to provide services by interpreters who will work throughout the State in local mainstream situations, to provide workshops for families, interpreters and professionals who work with hearing impaired infants and preschool children, and to provide direct services to hearing impaired senior citizens."

Requested by:   Senator Walker
––-DAY CARE RATES
Sec. 53.  (a)	Section 101 of Chapter 500 of the 1989 Session Laws reads as rewritten:
"Sec. 101. (a)	Rules for the monthly schedule of payments for the purchase of day care services for low income children shall be established by the Social Services Commission pursuant to G.S. 143B-153(8)a., in accordance with the following requirements:
(1)	For day care facilities, as defined in G.S. 110-86(3), in which fewer than fifty percent (50%) of the enrollees are subsidized by State or federal funds, the State shall continue to pay the same fee paid by private paying parents for a child in the same age group in the same facility.
(2)	Facilities in which fifty percent (50%) or more of the enrollees are subsidized by State or federal funds may choose annually one of the following payment options:
a.	The facility's payment rate for fiscal year 1985-86; or
b.	The county market rate, as calculated annually by the Division of Facility Services' Child Day Care Section in the Department of Human Resources.  A market rate shall be calculated for each county and for each age group of enrollees, and shall be representative of fees charged to unsubsidized private paying parents for each age group of enrollees within the county.  The county market rates shall be calculated from facility fee schedules collected by the Child Day Care Section during its routine inspection visits.
(3)	Child day care homes as defined in G.S. 110-86(4) and individual child care arrangements may be paid the county market rate for day care homes which shall be calculated at least biennially by the Child Day Care Section according to the method described in subsection (a)(2) of this section, using day care home fee schedules collected by the section during its routine inspection visits.
(b)	Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes may participate in the program that provides for the purchase of care in day care facilities, for minor children of needy families.  No separate licensing requirements may be used to select facilities to participate.
Day care homes from which the State purchases day care services shall meet the standards established by the Child Day Care Commission pursuant to G.S. 110-101 and G.S. 110-105.1.  Individual child care arrangements shall meet the requirements established by the Social Services Commission.  
			 (c)	County departments of social services shall continue to negotiate with day care providers for day care services below those rates prescribed by subsection (a) of this section.  County departments are directed to purchase day care services so as to serve the greatest number of children possible with existing resources."
(b)	Section 102 of Chapter 500 of the 1989 Session Laws reads as rewritten:
"Sec. 102.  (a)	To simplify current day care allocation methodology and more equitably distribute State day care funds, the Department of Human Resources shall apply the following allocation formula to all noncategorical federal and State day care funds used to pay the costs of necessary day care for minor children of needy families:
		(1)	One-third of budgeted funds shall be distributed according to the county's population in relation to the total population of the State;
(2)	One-third of the budgeted funds shall be distributed according to the number of children under 6 years of age in a county who are living in families whose income is below the State poverty level in relation to the total number of children under 6 in the State in families whose income is below the poverty level; and
(3)	One-third of budgeted funds shall be distributed according to the number of working mothers with children under 6 years of age in a county in relation to the total number of working mothers with children under 6 in the State.
(b)	Counties whose allocation, if based on previously used formulas, exceeds the allocation produced by the formula prescribed by this section may not have their allocations reduced in either fiscal year 1989-90 or fiscal year 1990-91 to the level that results from application of the new formula.  Counties whose allocation, if based on previously used formulas, is less than the allocation produced by the formula prescribed by this section shall continue to receive the proportional share of those funds that they received pursuant to appropriations for this purpose by the 1985 General Assembly.  The formula prescribed by this section shall not be implemented unless additional State or federal funds are made available.  The additional funds must be sufficient to apply the new formula without reducing any county's allocation below the previous year's initial allocation for child day care."

Requested by:   Senator Walker
––-COMMUNITY ACTION PROGRAM FUNDS
Sec. 54.  Section 119 of Chapter 500 of the 1989 Session Laws reads as rewritten:
"Sec. 119. For the 1989-90 fiscal year and the 1990-91 fiscal year, all agencies designated as eligible agencies pursuant to G.S. 113-28.24 that receive Community Service Block Grant funds may use those funds for the administration of agency programs.  The amount of those funds used for administration of agency programs shall be limited to ten percent (10%) of the total annual budget of the agency as certified in the prior year's audit of the agency.   The Department of Human Resources shall report annually to the Joint Legislative Commission on Governmental Operations and the Appropriations Committee on Human Resources beginning October 1, 1990, on the use of Community Service Block Grant Funds for administration of agency programs.  The report shall show: 
(1)	The total budget for each community action agency or limited purpose agency by program-funding source;
(2)	The amount of funds for administration provided by each program;
(3)	The criteria for determining the amount of funds used for administrative expenses; and 
(4)	The number of persons served by each program."

PART XIII.––-COLLEGES AND UNIVERSITIES

Requested by:   Senator Royall
––-AID TO PRIVATE COLLEGES CLARIFICATION
Sec. 55.  Section 30 of Chapter 500 of the 1989 Session Laws, as rewritten by Section 93 of Chapter 752 of the 1989 Session Laws, reads as rewritten:
"Sec. 30.  (a)	Funds appropriated in this act to the Board of Governors of The University of North Carolina for aid to private colleges shall be disbursed in accordance with the provisions of G.S. 116-19, 116-21, and 116-22.  These funds shall provide up to four hundred fifty dollars ($450.00) per full-time equivalent North Carolina undergraduate student enrolled at a private institution as of October 1 each year.
These funds shall be placed in a separate, identifiable account in each eligible institution's budget or chart of accounts.  All funds in this account shall be provided as scholarship funds for needy North Carolina students during the fiscal year.  Each student awarded a scholarship from this account shall be notified of the source of the funds and of the amount of the award.  Funds not utilized under G.S. 116-19 shall be for the tuition grant program as defined in subsection (b)	of this section.
(b)	In addition to any funds appropriated pursuant to G.S. 116-19 and in addition to all other financial assistance made available to private educational institutions located within the State, or to students attending these institutions, there is granted to each full-time North Carolina undergraduate student attending an approved institution as defined in G.S. 116-22, a sum, not to exceed one thousand one hundred fifty dollars ($1,150) per academic year, which shall be distributed to the student as hereinafter provided.  Initial allocations of these grants shall be at a level of ninety-seven percent (97%) of the maximum grant for which a student is eligible.  The State Education Assistance Authority shall project the number of students eligible, and the funds required, for the full academic year, and the Authority shall allocate grants at the highest proportion possible of the maximum grants.
The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section.  The State Education Assistance Authority may not approve any grant until it receives proper certification from an approved institution that the student applying for the grant is an eligible student.  Upon receipt of the certification, the State Education Assistance Authority shall remit at such times as it shall prescribe the grant to the approved institution on behalf, and to the credit, of the student.
In the event a student on whose behalf a grant has been paid is not enrolled and carrying a minimum academic load as of the 10th classroom day following the beginning of the school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority.  Each approved institution shall be subject to examination by the State Auditor for the purpose of determining whether the institution has properly certified eligibility and enrollment of students and credited grants paid on the behalf of the students.
In the event there are not sufficient funds to provide each eligible student with a full grant:
(1)	The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2)	Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
Any remaining funds shall revert to the General Fund.
(c)	Expenditures made pursuant to this section may be used only for secular educational purposes at nonprofit institutions of higher learning."

Requested by:   Senators Chalk and Ward
––-UNC INSTITUTIONS' CENTENNIAL CELEBRATION FUNDS
Sec. 56.  The Board of Governors of The University of North Carolina may allocate from funds available to General Administration for the 1990-91 fiscal year up to $100,000 per campus in the 1990-91 fiscal year for centennial celebrations at the constituent institutions.

PART XIV.––-COMMUNITY COLLEGES

Requested by:   Senator Conder
––-RICHMOND COMMUNITY COLLEGE/CHILDBIRTH CLASSES
Sec. 57.  Notwithstanding any other provision of law, the Board of Trustees of Richmond Community College may permit students under 16 years of age to participate in childbirth classes at the college under The Support Mother's Program.  These students may not be included in the computation of budget full-time equivalent student enrollment for the college; however, community services funds may be used to operate this Program.

Requested by:   Senator Ward
––-STATE BOARD OF COMMUNITY COLLEGES GUIDELINES
Sec. 58.  Notwithstanding any other provision of law, the State Board of Community Colleges shall establish budget guidelines not inconsistent with Section 80 of Chapter 752 of the 1989 Session Laws for the expenditure of individual community college budgets for the 1990-91 fiscal year.  In establishing these guidelines the Board shall assure that statewide priorities are met, to the extent resources are available.  The State Board of Community Colleges shall establish parameters for expenditure of appropriations to assure that:
(1)	Literacy funds shall not be spent for any other purpose and, to the maximum extent possible, anyone requesting literacy education will be served;
(2)	New Industry Training, Focused Industrial Training and Small Business Center funds shall not be reduced without full justification and assurances that needs are being met;
(3)	Salary increase funds shall be used to provide a four percent (4%) across-the-board salary increase to all full-time employees.  Two percent (2%) salary increase funds shall be used to provide merit pay or to maintain quality in educational programs through expenditures for personnel only.
The State Board shall require each college to submit a plan detailing how the budget reduction will be accomplished in order to assure a balanced educational program that meets statewide priorities.
The State Board shall report to the 1991 General Assembly on these guidelines and their implementation by each college.

Requested by:   Senator Ward
––-COMMUNITY COLLEGE TUITION INCREASE
Sec. 59.  Section 79 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 79.  The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1990 in the amount of one hundred five dollars ($105.00) per quarter for in-State students and nine hundred eighty-one dollars ($981.00) per quarter for out-of-State students.
The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1990 in the amount of twenty-five dollars ($25.00) a course for occupational extension courses."

Requested by:   Senator Ward
––-" TECH PREP”IMPLEMENTATION
Sec. 60.  Of the funds available to the Department of Public Education for vocational education in the 1990-91 fiscal year, the sum of $50,000 shall be allocated to the North Carolina Tech Prep Leadership Development Center at Richmond Community College for assistance to local education agencies and community colleges in planning and implementing "Tech Prep”across the State.  The Department of Community Colleges shall allocate $50,000 from funds available to it for the 1990-91 fiscal year for the North Carolina "Tech Prep”Leadership Development Center at Richmond Community College.

Requested by:   Senator Ward
––-COMMUNITY COLLEGE BOOKSTORE SALES
Sec. 61.  G.S. 115D-5 is amended by adding a new subsection to read:
"( a1)	Notwithstanding G.S. 66-58(c)(3) or any other provisions of law, the State Board of Community Colleges may adopt rules governing the expenditure of funds derived from bookstore sales by community colleges.  These expenditures shall be consistent with the mission and purpose of the Community College System.  Profits may be used in the support and enhancement of the bookstores, for student aid or scholarships, for expenditures of direct benefit to students, and for other similar expenditures authorized by the board of trustees, subject to rules adopted by the State Board.  These funds shall not be used to supplement salaries of any personnel."

PART XV.––-PUBLIC SCHOOLS

Requested by:   Senator Ward
––-SCHOOL TRANSPORTATION BUDGET REDUCTION/IMPLEMENTATION
Sec. 62.  (a)	G.S. 115C-240(d) reads as rewritten:
"(d)	The State Board of Education shall assist local boards of education by establishing guidelines and a framework through which local boards may establish, review and amend school bus routes prepared pursuant to G.S. 115C-246.  The State Board shall also require local boards to implement the Transportation Information Management System or an equivalent system approved by the State Board of Education, no later than July 1, 1992.  The State Board of Education shall also assist local boards of education with reference to the acquisition and maintenance of school buses or any other question which may arise in connection with the organization and operation of school bus transportation systems of local boards."
(b)	G.S. 115C-246(a) reads as rewritten:
"(a)	The superintendent of the local school administrative unit  shall, prior to the commencement of each regular school year, prepare a plan for a definite route, including stops for receiving and discharging pupils, for each school bus so as to assure the most efficient use of such bus and the safety and convenience of the pupils assigned thereto. The superintendent may, in his discretion, obtain the advice of the State Board of Education with reference to the plan. The buses shall be operated upon the route so established and not otherwise, except as provided in this Article. From time to time the principal may suggest changes in any such bus route as he shall deem proper for the said purposes, and the same shall be effective when approved by the superintendent of the local school administrative unit."
(c)	The Department of Public Instruction shall report to the Joint Legislative Commission on Governmental Operations prior to December 1, 1990, on its efforts to lower fuel costs and improve efficiency in the student transportation system.

Requested by:   Senator Ward
––-CAREER DEVELOPMENT PROGRAM FUNDING LEVEL
Sec. 63.  Section 7 of Chapter 778 of the 1989 Session Laws reads as rewritten:
"Sec. 7.  Existing Career Development and Lead Teacher Pilot Programs.
(a)	Notwithstanding the provisions of Article 24B of Chapter 115C of the General Statutes, Article 24D of Chapter 115C of the General Statutes, or any other provision of law, funding for the career development pilot projects and the lead teacher pilot projects shall continue through the 1989-90 fiscal year: Provided, however, that any additional compensation received by an employee as a result of the unit's participation in the pilot program for the 1989-90 fiscal year and for subsequent fiscal years shall be paid as a bonus or supplement to the employee's regular salary.
Funding of these pilot projects shall continue for subsequent fiscal years only if the pilot units successfully submit local school improvement plans pursuant to the Performance-based Accountability Program, during the 1989-90 school year and during subsequent school years.
(b)	Beginning with the 1990-91 fiscal year, if the career development pilot units participate in differentiated pay plans in accordance with G.S. 115C-238.4, they shall receive State funds for differentiated pay in an amount not to exceed seven percent (7%) of teacher and administrator salaries and of the employer's contributions for social security and retirement.  They shall receive no State funding as career development pilot units.
(c)	The local school improvement plan for each career development pilot program shall include modifications to the differentiated pay plan, necessary to assure that the cost of the differentiated pay plan equals the amount of State and local funds available for differentiated pay for the school unit.  It is the intent of the General Assembly that, in making these modifications to the differentiated pay plans, local school administrative units assure that adequate funds remain available to provide bonuses or supplements to teachers.
If the differentiated pay plan, as modified for the 1990-91 fiscal year, qualifies as a differentiated pay plan pursuant to G.S. 115C-238.4(a)(1), the local school administrative unit is not required to resubmit the plan to affected employees for a vote before submitting it to the State Superintendent; if it qualifies as a differentiated pay plan pursuant to G.S. 115C-238.4(a)(2) through (a)(5), the local school administrative unit is required to resubmit the plan to affected employees for a vote.
(d)	If an employee in a career development pilot unit is recommended for Career Status I or II and that status is approved by the local board of education prior to the beginning of the 1989-90 school year, the local board of education may pay that employee a bonus or supplement to his regular salary.  For the 1989-90 fiscal year only, the local board of education may use any State or local funds available to it for the career development pilot program to pay these bonuses or supplements.
(e)	Effective at the beginning of the 1989-90 school year, an employee may be considered for Career Status II no earlier than his third year in Career Status I; an employee may be considered for Career Status III no earlier than his third year in Career Status II.
(f)	Any career ladder pilot project in a school unit that has resulted from a merger of school units, within the last calendar year preceding the effective date of this act, may be modified by the local school board, upon the recommendation of the State Superintendent of Public Instruction and with the approval of the State Board of Education.  The merged pilot unit shall receive State funds for differentiated pay in an amount not to exceed seven percent (7%) of teacher and administrator salaries and of the employer's contributions for social security and retirement.  It shall receive no State funding as a career development pilot unit.
(g)	No provision of this section shall be construed to allow a local school administrative unit to pay any teacher, in salary and bonus or supplement, less than it paid that teacher each month during the prior school year."

Requested by:   Senator Ward
––-BASIC EDUCATION FUNDS
Sec. 64.  Section 61 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 61.  Funds are appropriated in Section 3 of this act to the Department of Public Education for further implementation of the Basic Education Program in public schools.  These funds will provide for the fifth and sixth years of the planned eight-year implementation schedule.  The following information chart shows the expansion budget funds for the Basic Education Program for 1989-90 totaling $69,277,440 and an additional $29,994,568 in 1990-91 for teachers for a total of $99,272,008 in 1990-91.

BASIC EDUCATION PROGRAM
Basic Education Plan:
	1989-90	1990-91
1.	Additional Teachers	$ 46,735,714	 $	 76,730,282
2.	Vocational Education
  Teachers	1,039,116		  1,039,116
3.	In-School Suspension	-   		     -     
4.	Instructional Support	15,477,126		 15,477,126
5.	Instructional/Lab
  Clerical Assistants	-   		     -     
6.	Athletic Trainer Supplement	15,000		     15,000
7.	Assistant Principals -
  Extension of Term	-   		     -     
8.	Asst/Associate
  Superintendents	-   		     -     
9.	Clerical Assistants	6,010,484		  6,010,484
10.	Supervisors	-   		     -     
	            	             	         
TOTAL BASIC
  EDUCATION PLAN	$ 69,277,440	$	 99,272,008

Of these funds, the sum of $12,157,644 for the 1990-91 fiscal year shall be used to reduce class size in grades 10-12.
With regard to the remainder of these funds, local boards of education may request waivers of State laws pertaining to the purposes for which State funds for the public schools may be used, pursuant to G.S. 115C-238.3(d), so as to use these funds for purposes, other than for classroom teachers, to implement the Basic Education Program.  The General Assembly urges the State Superintendent and the State Board of Education to construe their authority to grant such waivers under G.S. 115C-238.6 broadly when they consider any such requests for waivers."

Requested by:   Senators Ward and Taft
––-COMPLETION OF BASIC EDUCATION PROGRAM
Sec. 65. (a) The General Assembly finds that given the current revenue situation of the State, the original implementation schedule of the Basic Education Program cannot be met and that the recently enacted School Improvement and Accountability Act has moved the State to a student performance orientation that is predicated on school systems using their resources flexibly to address unique local needs. The General Assembly is committed to the improvement of education and to the complete implementation of the strongest possible Basic Education Program;  therefore, the Legislative Study Commission on the Basic Education Program is hereby created to advise the General Assembly on ways that the Basic Education Program can be strengthened and on a lengthened implementation schedule for the Basic Education Program.
The Commission shall consist of 18 members: one school superintendent, one classroom teacher, and four members at large, appointed by the Governor; three members of the Senate, one school principal, one PTA member, and one member at large appointed by the President Pro Tempore of the Senate; and three members of the House of Representatives, one classroom teacher, one school board member, and one member at large, appointed by the Speaker of the House of Representatives.
	(b)	The President Pro Tempore of the Senate shall designate one of his appointees who is a member of the Senate as cochairman and the Speaker of the House of Representatives shall designate one of his appointees who is a member of the House of Representatives as cochairman. Each chairman shall serve as chairman until he ceases to be a member of the General Assembly.
(c)	The Commission shall study the Basic Education Program, how it has been implemented to date, and what effect the Basic Education Program has had on educational achievement throughout the State.  The Commission shall also examine the remainder of the schedule of implementation of the Basic Education Program, review all items to be funded under the Basic Education Program, consider the relationship between the Basic Education Program and the School Improvement and Accountability Act, and recommend any changes or modifications to the Basic Education Program and the School Improvement and Accountability Act that it deems appropriate.
	(d)	The Commission shall submit a final report of its findings and recommendations to the General Assembly on or before March 31, 1991, by filing the report with the President Pro Tempore of the Senate and the Speaker of the House of Representatives.  Upon filing its final report, the Commission shall terminate.
(e)  The Commission, while in the discharge of official duties, may exercise all the powers provided for under the provisions of G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4.  The Commission may meet at any time upon the joint call of the cochairmen.  The Commission may meet in the Legislative Building or the Legislative Office Building.
(f) Members of the Commission shall receive subsistence and travel expenses at the rates set forth in G.S. 120-3.1.
(g) The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120-32.02.  The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist in the work of the Commission. The House of Representatives' and the Senate's Supervisor of Clerks shall assign clerical staff to the commission or committee, upon the direction of the Legislative Services Commission.  The expenses relating to clerical employees shall be borne by the Commission.
(h) When a vacancy occurs in the membership of the Commission the vacancy shall be filled by the same appointing officer who made the initial appointment.
(i) All State departments and agencies and local governments and their subdivisions shall furnish the Commission with any information in their possession or available to them.
Sec. 66.  G.S. 115C-81(a) reads as rewritten:
"(a)	The State Board of Education shall adopt a Basic Education Program for the public schools of the State. Before it adopts or revises the Basic Education Program, the State Board shall consult with an Advisory Committee, including at least eight members of local boards of education, that the State Board appoints from a list of nominees submitted by the North Carolina School Boards Association. The State Board shall report annually to the General Assembly on any changes it has made in the program in the preceding 12 months and any changes it is considering for the next 12 months.
The State Board shall implement the Basic Education Program within funds appropriated for that purpose by the General Assembly and by units of local government. It is the goal of the General Assembly that the Basic Education Program be fully funded and completely operational in each local school administrative unit by July 1, 1995."

Requested by:   Senator Ward
––-TEACHING FELLOWS FUND USES
Sec. 67.  (a)	G.S. 115C-363.23A(e) reads as rewritten:
"(e)	The Commission shall forgive the loan if, within seven years after graduation, the recipient teaches for four years at a North Carolina public school or at a school operated by the United States government in North Carolina.  The Commission shall also forgive the loan if it finds that it is impossible for the recipient to teach for four years, within seven years after graduation, at a North Carolina public school or at a school operated by the United States government in North Carolina, because of the death or permanent disability of the recipient."
(b)	G.S. 115C-363.23A(f) reads as rewritten:
"(f)	All funds appropriated to or otherwise received by the Teaching Fellows Program for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund may be used only for scholarship loans granted under the Teaching Fellows Program, campus and summer program support, and costs related to disbursement of awards and collection of loan repayments."

Requested by:   Senator Ward
––-ELIMINATE EDUCATION REPORTS
Sec. 68.  (a)	G.S. 115C-363.10 is repealed.
(b) Section 55(b)(12)a. of Chapter 479 of the 1985 Session Laws is repealed.
(c) Section 68 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 68.  Funds are appropriated to the Department of Public Education for the 1989-91 fiscal biennium for additional teacher positions to be used to expand curricular offerings in accordance with the Basic Education Program.  Local boards of education shall use positions allocated to them with these funds to expand curricular offerings to those contained in the Basic Education Program at any grade level and in any of the identified curricular offerings based on the identification of local needs, priorities, and local schedules for implementing the Basic Education Program.
The local board of education may, with the approval of the State Board of Education, use the funds allocated to it for expanded curricular offerings to otherwise provide a curricular offering at that school, as called for in the Basic Education Program.  The State Board of Education shall monitor the alternative uses of these funds."

Requested by:   Senator Conder
––-ACCREDITATION STANDARDS REASSESSED
Sec. 69.  The State Board of Education shall reassess the accreditation standards it adopted pursuant to G.S. 115C-12(9)c. that are scheduled to be implemented in 1990-91.

Requested by:   Senator Ward
––-SMALL SCHOOL PROGRAM ALLOTMENTS
Sec. 70.  G.S. 115C-416 reads as rewritten:
"§ 115C-416.  Power to allot funds for teachers and other personnel.
The Board shall have power to provide for the enrichment and strengthening of educational opportunities for the children of the State, and when sufficient State funds are available to provide first for the allotment of such a number of teachers as to prevent the teacher loan from being too great in any school, the Board is authorized, in its discretion, to make an additional allotment of teaching personnel to local school administrative units of the State to be used either jointly or separately, as the Board may prescribe. Such additional teaching personnel may be used in the local school administrative units as librarians, special teachers, or supervisors of instruction and for other special instructional services such as art, music, physical education, adult education, special education, or industrial arts as may be authorized and approved by the Board. The salary of all such personnel shall be determined in accordance with the State salary schedule adopted by the Board.
In addition, the Board is authorized and empowered in its discretion, to make allotments of funds for clerical assistants for classified principals and for school social workers.
The Board is further authorized, in its discretion, to allot teaching personnel to local school administrative units for experimental programs and purposes.
The Board may also allot teaching and other positions, within funds available, to local school administrative units to allow local units to place personnel occupying those positions in private hospitals and treatment facilities for the limited purpose of providing education to students confined to those institutions.  The Board shall adopt rules to ensure that any such placements do not contribute to the profitability of private institutions and that they are otherwise in accordance with State and federal law."

Requested by:   Senator Ward
––-LEAVE ACCUMULATION/PUBLIC SCHOOL EMPLOYEES
Sec. 71.  G.S. 115C-272(b) reads as rewritten:
"(b)	Superintendents shall be paid promptly when their salaries are due provided the legal requirements for their employment and service have been met. All superintendents employed by any local school administrative unit who are paid from local funds shall be paid promptly as provided by law and as State allotted superintendents are paid. Superintendents paid from State funds shall be paid as follows:
(1)	Salary payments to superintendents shall be made monthly on the basis of each calendar month of service. Included within their term of employment shall be annual vacation leave at the same rate provided for State employees. Included within the 12 months' employment each local board of education shall designate the same or an equivalent number of legal holidays as those designated by the State Personnel Commission for State employees.
(2)	Notwithstanding any provisions of this section to the contrary no person shall be entitled to pay for any vacation day not earned by that person. Vacation days shall not be used for extending the term of employment of individuals and shall not be cumulative from one fiscal year to another fiscal year: Provided, that superintendents may accumulate annual vacation leave days as follows: annual leave may be accumulated without any applicable maximum until June 30 of each year. On June 30 of each year, any superintendent with more than 30 days of accumulated leave shall have the excess accumulation cancelled so that only 30 days are carried forward to July 1 of the same year. All vacation leave taken by the superintendent will be upon the authorization of his immediate supervisor and under policies established by the local board of education. An employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 240 hours when separated from service due to resignation, dismissal, reduction in force, death, or  service retirement. If the last day of terminal leave falls on the last workday in the month, payment shall be made for the remaining nonworkdays in that month. Employees retiring on disability retirement may exhaust annual leave rather than be paid in a lump sum. The provisions of this subdivision shall be accomplished without additional State and local funds being appropriated for this purpose. The State Board of Education shall adopt rules and regulations for the administration of this subdivision.
(3)	Each local board of education shall sustain any loss by reason of an overpayment to any superintendent paid from State funds.
(4)	All of the foregoing provisions of this section shall be subject to the requirement that at least fifty dollars ($50.00), or other minimum amount required by federal social security laws, of the compensation of each school employee covered by the Teachers' and State Employees' Retirement System or otherwise eligible for social security coverage shall be paid in each of the four quarters of the calendar year."
Sec. 72.  G.S. 115C-316(a) reads as rewritten:
"(a)	School officials and other employees shall be paid promptly when their salaries are due provided the legal requirements for their employment and service have been met. All school officials and other employees employed by any local school administrative unit who are to be paid from local funds shall be paid promptly as provided by law and as state-allotted school officials and other employees are paid.
Public school employees paid from State funds shall be paid as follows:
(1)	Employees Other than Superintendents, Supervisors and Classified Principals on an Annual Basis. – Salary payments to employees other than superintendents, supervisors, and classified principals employed on an annual basis shall be made monthly at the end of each calendar month of service. Included within their term of employment shall be annual vacation leave at the same rate provided for State employees, computed at one-twelfth (1/12) of the annual rate for state employees for each calendar month of employment. On a day that employees are required to report for a workday but pupils are not required to attend school due to inclement weather, an employee may elect not to report due to hazardous travel conditions and to take one of his annual vacation days or to make up the day at a time agreed upon by the employee and his immediate supervisor or principal. Included within their term of employment each local board of education shall designate the same or an equivalent number of legal holidays as those designated by the State Personnel Commission for State employees.
(2)	School Employees Paid on an Hourly or Other Basis. – Salary payments to employees other than those covered in G.S. 115C-272(b)(1), 115C-285(a)(1) and (2), 115C-302(a)(1) and (2), and 115C-316(a)(1) shall be made at a time determined by each local board of education. Expenditures for the salary of these employees from State funds shall be within allocations made by the State Board of Education and in accordance with rules and regulations approved by the State Board of Education concerning allocations of State funds: Provided, that any individual school employee employed for a term of 10 calendar months may be paid in 12 monthly installments if the employee so requests on or before the first day of the school year. Such request shall be filed in the administrative unit which employs the employee. The payment of the annual salary in 12 installments instead of 10 shall not increase or decrease said annual salary nor in any other way alter the contract between the employee and the said administrative unit. Included within the term of employment shall be provided for full-time employees annual vacation leave at the same rate provided for State employees, computed at one-twelfth (1/12) of the annual rate for State employees for each calendar month of employment, to be taken under policies determined by each local board of education. On a day that employees are required to report for a workday but pupils are not required to attend school due to inclement weather, an employee may elect not to report due to hazardous travel conditions and to take one of his annual vacation days or to make up the day at a time agreed upon by the employee and his immediate supervisor or principal. Included within their term of employment, each local board of education shall designate the same or an equivalent number of legal holidays occurring within the period of employment as those designated by the State Personnel Commission for State employees.
(3)	Notwithstanding any provisions of this section to the contrary no person shall be entitled to pay for any vacation day not earned by that person.  The first 10 days of annual leave earned by a 10- or 11-month employee during any fiscal year period shall be scheduled to be used in the school calendar adopted by the respective local boards of education.  Vacation days shall not be used for extending the term of employment of individuals.  Ten- or 11-month employees may accumulate annual vacation leave days as follows:  annual leave may be accumulated without any applicable maximum until June 30 of each year.  On June 30 of each year, any of these employees with more than 30 days of accumulated leave shall have the excess accumulation cancelled so that only 30 days are carried forward to July 1 of the same year.  All vacation leave taken by these employees will be upon the authorization of their immediate supervisor and under policies established by the local board of education.  An employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 240 hours when separated from service due to resignation, dismissal, reduction in force, death or service retirement.  If the last day of terminal leave falls on the last workday in the month, payment shall be made for the remaining nonworkdays in that month.  Employees retiring on disability retirement may exhaust annual leave rather than be paid in a lump sum.  The provisions of this subdivision shall be accomplished without additional State and local funds being appropriated for this purpose.  The State Board of Education shall adopt rules and regulations for the administration of this subdivision.
(4)	Twelve-month school employees other than superintendents, supervisors and classified principals paid on an hourly or other basis whether paid from State or from local funds may accumulate annual vacation leave days as follows: annual leave may be accumulated without any applicable maximum until June 30 of each year. On June 30 of each year, any employee with more than 30 days of accumulated leave shall have the excess accumulation cancelled so that only 30 days are carried forward to July 1 of the same year. All vacation leave taken by the employee will be upon the authorization of his immediate supervisor and under policies established by the local board of education. An employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 240 hours when separated from service due to resignation, dismissal, reduction in force, death, or service retirement. If the last day of terminal leave falls on the last workday in the month, payment shall be made for the remaining nonworkdays in that month. Employees retiring on disability retirement may exhaust annual leave rather than be paid in a lump sum. The provisions of this subdivision shall be accomplished without additional State and local funds being appropriated for this purpose. The State Board of Education shall adopt rules and regulations for the administration of this subdivision.
(5)	All of the foregoing provisions of this section shall be subject to the requirement that at least fifty dollars ($50.00), or other minimum amount required by federal social security laws, of the compensation of each school employee covered by the Teachers' and State Employees' Retirement System or otherwise eligible for social security coverage shall be paid in each of the four quarters of the calendar year.
(6)	Each local board of education shall sustain any loss by reason of an overpayment to any school official or other employee paid from State funds."

Requested by:   Senator Ward
––-PROSPECTIVE TEACHER SCHOLARSHIP LOAN PROGRAM/EXPANDED TO COVER ADDITIONAL CERTIFIED EMPLOYEES
Sec. 73.  G.S. 115C-471 reads as rewritten:
"§ 115C-471.  Fund administered by State Superintendent of Public Instruction; rules and regulations.
The Scholarship Loan Fund for Prospective Teachers shall be administered by the State Superintendent of Public Instruction, under the following rules and regulations, and under such further rules and regulations as the State Board of Education shall in its discretion promulgate:
(1)	Any resident of North Carolina who is interested in preparing to teach in the public schools of the State shall be eligible to apply in writing to the State Superintendent of Public Instruction for a regular scholarship loan in the amount of not more than two thousand dollars ($2,000) per academic school year.
(2)	All scholarship loans shall be evidenced by notes made payable to the State Board of Education which shall bear interest at the rate of six percent (6%) per annum from and after September 1 following fulfillment by a prospective teacher of the requirements for a certificate based upon the entry level degree; or in the case of persons already teaching in the public schools who obtain scholarship loans such notes shall bear interest at the prescribed rate from and after September 1 of the school year beginning immediately after the use of such scholarship loans; or in the event any such scholarship shall be terminated under the provisions of subdivision (3) of this section then such notes shall bear interest from the date of such termination.  A minor recipient who signs such note or notes shall also obtain the endorsement thereon by a parent, if there be a living parent, unless such endorsement is waived by the Superintendent of Public Instruction.  Such minor recipient shall be obligated upon such note or notes as fully as if he or she were of age and shall not be  permitted to plead such minority as a defense in order to avoid the obligations undertaken upon such note or notes.
(3)	Each recipient of a scholarship loan under the provisions of this program shall be eligible for scholarship loans each year until he has qualified for a certificate based upon the entry level degree, but he shall not be so eligible for more than the minimum number of years required by the college or university for qualifying for said certificate.  The permanent withdrawal of any recipient from college or failure of such recipient to do college work in a manner acceptable to the State Superintendent of Public Instruction will immediately forfeit such recipient's right to retain such scholarship and subject such scholarship to termination by the State Superintendent of Public Instruction in his discretion.  All terminated scholarships shall be regarded as vacant and subject to being awarded to other eligible persons.
(4)	Except under emergency conditions applicable to the State Superintendent of Public Instruction, recipients of scholarship loans shall enter the public school system of North Carolina at the beginning of the next school term after qualifying for a certificate based upon the entry level degree or in case of persons already teaching in the public schools at the beginning of the next school term after the use of such loan.  All teaching service for which the recipient of any scholarship loan is obligated shall be rendered within seven years after the completion of the use of each such scholarship loan.
(5)	For each full school year taught in a North Carolina public school, the recipient of a scholarship loan shall receive credit upon the amount due by reason of such loan equal to all interest accrued upon the loan to that time plus a credit of two thousand dollars ($2,000) upon the principal amount of such obligation or such lesser amount as may remain due upon said principal; provided, however, that in lieu of teaching in the public school, a recipient may elect to pay in cash the full amount of scholarship loans received plus interest then due thereon or any part thereof which has not been canceled by the State Board of Education by reason of teaching service rendered.
(6)	If any recipient of a scholarship loan who is fulfilling his obligation under subdivision (4) of this section dies within the seven-year period, or if any recipient dies during the period of attendance at a college or university under a scholarship loan, any balance that has not been discharged through service shall be automatically canceled.
		If any recipient of a scholarship loan fails to fulfill his obligations under subdivision (4) of this section, other than as provided above, the amount of his loan and accrued interest, if any, shall be due and payable from the time of failure to fulfill such obligations.
(7)	The State Superintendent of Public Instruction shall award scholarship loans with due consideration to such factors and circumstances as: aptitude, purposefulness, scholarship, character, financial need, and areas or subjects of instruction in which the demands for teachers are greatest.  Since the primary purpose of this Article is to attract worthy young people to the teaching profession, preference shall be given to high school seniors in the awarding of scholarships."

Requested by:   Senator Ward
––-CHILD NUTRITION STAFF DEVELOPMENT
Sec. 74.  Section 56 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 56.  Of the funds appropriated to the Department of Public Education for the 1989-90 fiscal year and for the 1990-91 fiscal year for aid to local school administrative units for staff development, the State Board of Education shall allocate $280,000 each fiscal year to local school units for staff development of school food service personnel."

Requested by:   Senator Basnight
––-UNIFORM EDUCATION REPORTING SYSTEM FUNDS
Sec. 75.  Of the funds available to the Department of Public Education for the 1990-91 fiscal year for aid to local school administrative units, the Department shall use $438,642 to reimburse 13 local school administrative units for expenses incurred in converting to AS/400 equipment as required to implement the Uniform Education Reporting System.
Before providing these funds to any of the 13 local units that request it, the Department of Public Education shall first conduct an electronic data processing audit of the local school administrative unit that is to receive the funds to determine:  (i) if the unit had used the previous equipment that was replaced by the AS/400 in a manner consistent with standard data processing management and operational procedures; and (ii) if the unit is using the current equipment in a manner consistent with standard data processing management and operational procedures.  The results of the electronic data processing audits shall be delivered to the Fiscal Research Division, the Legislative Automated Systems Division, and, if requested, to the Joint Legislative Commission on Governmental Operations.

Requested by:   Senator Conder
––-EDUCATION FOUNDATIONS
Sec. 76. Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-6.  Establishment of private, nonprofit corporations.
The Superintendent of Public Instruction shall encourage the establishment of private, nonprofit corporations to support the public education system. If the sole purpose of such a corporation is to support the public school system, the Superintendent may assign employees to assist with the establishment and operation of the corporation and may make available to the corporation the Department's office space, equipment, supplies, and other related resources.
The Superintendent of Public Instruction may require the board of directors of each private, nonprofit corporation, to which the Superintendent assigns employees or makes available resources pursuant to this section, to secure and pay for the services of the State Auditor's Office or employ a public accountant to conduct an audit of the financial accounts of the corporation. The board of directors shall transmit to the Superintendent of Public Instruction a copy of the annual financial audit report of said private nonprofit corporation."

Requested by:   Senator Taft
––-LIMIT UNIFORM EDUCATION REPORTING SYSTEM FINES
Sec. 77.  G.S. 115C-438 reads as rewritten:
"§ 115C-438.  Provision for disbursement of State money.
The deposit of money in the State treasury to the credit of local school administrative units shall be made in monthly installments, and additionally as necessary, at such time and in such a manner as may be most convenient for the operation of the public school system. Before an installment is credited, the school finance officer shall certify to the State Board of Education the expenditures to be made by the local school administrative unit from the State Public School Fund during the month. This certification shall be filed on or before the fifth day following the end of the month preceding the period in which the expenditures will be made. The State Board of Education shall determine whether the moneys requisitioned are due the local school administrative unit, and upon determining the amount due, shall cause the requisite amount to be credited to the local school administrative unit. Upon receiving notice from the State Treasurer of the amount placed to the credit of the local school administrative unit, the finance officer may issue State warrants up to the amount so certified.
The State Board of Education may withhold money for payment of salaries for administrative officers of local school administrative units if any report required to be filed with State school authorities is more than 30 days overdue. The State Board of Education shall withhold money for payment of salaries for the superintendent, finance officer, and all other administrative officers charged with providing payroll information pursuant to G.S. 115C-12(18), if the local school administrative unit fails to provide the payroll information to the State Board in a timely fashion and substantially in accordance with the standards set by the State Board; provided, however, the maximum amount withheld from any local school administrative unit shall be twenty-five thousand dollars ($25,000).
Money in the State Public School Fund and State bond moneys shall be released only on warrants drawn on the State Treasurer, signed by such local official as may be required by the State Board of Education."

PART XVI.––-DEPARTMENT OF CORRECTION

Requested by:   Senator Basnight
––-GATES COUNTY SCHOOL WASTEWATER TREATMENT
Sec. 78.  The Wastewater treatment systems of the Gates County Junior High School and the Gates County High School may be  tied into the wastewater treatment system of the Gates County Correctional Center.

Requested by:   Senator Parnell
––-ELECTRONIC SURVEILLANCE FUNDS
Sec. 79.  Of the funds appropriated to the Department of Correction for the 1990-91 fiscal year as a reserve for the operation of Redd Dorm at Cameron Morrison and as a reserve for additional improvements/alternatives in the corrections system, $1,672,010 shall be used by the Department of Correction in the 1990-91 fiscal year to expand the electronic surveillance program.

Requested by:   Senator Parnell
––-DEPARTMENT OF CORRECTION EXPANSION FUNDS
Sec. 80.  (a) The $1,531,800 appropriated in Section 4 of Chapter 754 of the 1989 Session Laws to the Office of State Budget and Management for the 1990-91 fiscal year for construction of a metal products plant at the Harnett County prison unit is repealed.
(b) The $1,028,100 appropriated in Section 4 of Chapter 754 of the 1989 Session Laws to the Office of State Budget and Management for the 1990-91 fiscal year for a tailoring plant at the Harnett County prison unit is repealed.
(c) The $3,953,533 appropriated in Section 4 of Chapter 754 of the 1989 Session Laws to the Office of State Budget and Management for the 1990-91 fiscal year for medium custody dormitories and ancillary facilities at Pender County prison unit is reduced by $456,059.
(d) The $7,668,211 appropriated in Section 3 of Chapter 8 of the 1989 Session Laws to the Office of State Budget and Management for the 1990-91 fiscal year for dayroom additions to existing minimum security field unit dorms is repealed.
	(e) The $1,583,141 appropriated in Section 3 of Chapter 8 of the 1989 Session Laws to the Office of State Budget and Management for the 1990-91 fiscal year for renovation and site preparation for classroom and vocational facilities is repealed.

Requested by:   Senator Parnell
––-LIMIT USE OF OPERATIONAL FUNDS
Sec. 81.  Funds appropriated in Section 3 of this act to the Department of Correction for early operational costs for additional facilities shall be used for the personnel and operating expenses set forth in the budget approved by the General Assembly in this act.  These funds may not be expended for any other purpose, and may not be expended for additional prison personnel positions until the new facilities are within 90 days of completion.

Requested by:   Senator Parnell
––-RAISE PER DIEM REIMBURSEMENT
Sec. 82.  Of the funds appropriated to the Department of Correction for the 1990-91 fiscal year, the sum of $604,678 shall be used to raise the per diem reimbursement to  counties from twelve dollars and fifty cents ($12.50) per day to fourteen dollars and fifty cents ($14.50) per day for State inmates serving sentences of more than 30 days in local confinement facilities.

Requested by:   Senator Parnell
––-SOUTHERN APPALACHIA MAINSTREAM FUNDS
Sec. 83.  Of the funds appropriated to the Department of Correction, Division of Adult Probation and Parole for the 1990-91 fiscal year, $190,000 shall be used as a grant-in-aid for a pilot program at Southern Appalachia Mainstream, Inc., a community-based residential program for offenders who are leaving the Division of Prisons and who are in need of residence plans, community service jobs, and/or social readiness skills.  Southern Appalachia Mainstream, Inc., shall provide a quarterly report to the Joint Legislative Commission on Governmental Operations on the expenditure of State funds and the effectiveness of the program, including information on the number of clients served and the number of clients who successfully complete the program while residing at Southern Appalachia Mainstream.

Requested by:   Senator Parnell
––-PRIVATE ALCOHOL AND DRUG ABUSE DETENTION CENTER
Sec. 84.  The Department of Correction shall develop a proposal for a pilot program for contracting with the private sector for one or more privately operated, for-profit or not for-profit detention centers for alcohol and drug abusers with an emphasis on the self-help recovery model.  The plan should provide for the private construction, operation, and maintenance of a facility or facilities not to exceed a total of 500 beds and should include considerations of size, level of custody, construction and operation costs, and the possible use of existing buildings.  The Department shall submit this proposal to the Joint Legislative Commission on Governmental Operations by January 1, 1991.

PART XVII.––-JUDICIAL DEPARTMENT

Requested by:   Senator Marvin
––-RESERVE FOR RESENTENCING HEARINGS IN CAPITAL CASES
Sec. 85.  (a) There is created in the Judicial Department a non-reverting special fund to be known as "The Special Capital Case Rehearing Fund.” The funds shall be used to provide resentencing hearings, related appeals, and post-conviction hearings required by the decisions of the United States Supreme Court in McKoy v. North Carolina, March 5, 1990, and of the Supreme Court of North Carolina upon the remand of that case, for the payment of attorneys fees and related expenses for representation of indigent persons as specified in Subchapter IX of Chapter 7A of the General Statutes.  The Special Capital Case Rehearing Fund shall terminate, and all funds remaining in it shall revert to the General Fund, when the Director of the Administrative Office of the Courts certifies to the State Controller that all reasonably foreseeable resentencing hearings, related appeals, and post-conviction hearings have been substantially completed.
(b) Of the funds appropriated to the Judicial Department for the 1990-91 fiscal year the sum of $500,000 shall be allocated to The Special Capital Case Rehearing Fund for the purposes indicated in this section. 

Requested by:   Senator Marvin
––-EXTEND CERTAIN SPECIAL SUPERIOR COURT JUDGE TERMS
Sec. 86.  (a) Notwithstanding G.S. 7A-45, G.S. 7A-45.1, Section 7 of Chapter 509, Session Laws of 1987, or any other provision of law, if any special superior court judge who is holding office on the effective date of this act first took office as an appointed or elected regular or special superior court judge in the calendar year 1986, the term of office of that judge is extended through December 31, 1994. 
(b) Notwithstanding G.S. 143-23 the Judicial Department may use lapsed salary funds for fiscal year 1990-91, not to exceed the sum of $61,260, to cover the costs of the extended term for the period of January 1, 1991, through June 30, 1991, as provided in subsection (a).

Requested by:   Senator Marvin
––-INCREASED JUDICIAL DEPARTMENT OPERATING EXPENSE REQUIREMENTS
Sec. 87.  From the funds appropriated to the Judicial Department for the 1990-91 fiscal year, the Administrative Office of the Courts may use up to $1,530,000 to meet the 1990-91 fiscal year's additional operating expenses in the areas of office, warehouse, and print shop rental, supplies, jury and witness fees, court record book restoration, telephone system repairs, moving-related expenses, indigent person attorney fees, and postage if the postage rate is increased.

PART XVIII.––-DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by:   Senator Parnell
––-CONTINUE SUMMIT HOUSE FUNDING
Sec. 88.  Section 113 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 113.  Of the funds appropriated to the Department of Crime Control and Public Safety for the 1990-91 fiscal year, $165,000 shall be used to support a pilot program at Summit House, a community-based residential alternative to incarceration for mothers and pregnant women convicted of nonviolent crimes. Summit House shall provide a quarterly report to the Joint Legislative Commission on Governmental Operations on the expenditure of State appropriations and on the effectiveness of the program, including information on the number of clients served, the number of clients who have their probation revoked, and the number of clients who successfully complete the program while housed at Summit House."

Requested by:   Senators Marvin and Parnell
––-COMMUNITY PENALTIES PROGRAMS FUNDS
Sec. 89.  (a) Notwithstanding any other provision of this act, funds in the amount of $1,403,637 appropriated to the Department of Crime Control and Public Safety for community penalties programs and funds in the amount $143,346 contained in the reduction in Sec. 80(c) of this act are allocated as follows in lieu of the allocations made in Chapter 8 of the 1989 Session Laws and Chapter 752 of the 1989 Session Laws:
(1)	$1,252,578 to provide State support for the 15 existing community penalties programs.  Those programs are listed below and shall receive no less than the amounts indicated.  Contracts for the programs listed below shall be executed by the Department of Crime Control and Public Safety before sine die adjournment of the 1989 Regular Session of the General Assembly.

One Step Further, Inc.	$139,664

Rockingham/Caswell
(Rural Services Contract)	40,900

Fayetteville Area Sentencing
Center, Inc.	131,878

Re-Entry, Inc. 	93,500

Repay, Inc. 	100,045

Community Corrections
Resources, Inc.	100,045

Western Carolinians for
Criminal Justice, Inc.	100,300

Prison & Jail Project, Inc.	100,300

Community Penalties Program,
Inc.	68,213

Jacksonville Community
Penalties, Inc.	89,250

Gaston Community Penalties,
Inc.	53,661

Dispute Settlement Center,
Inc.	53,661

Appropriate Punishment
Option, Inc.	53,661

Mecklenburg Community
Corrections	93,500

Neuse River Community
Penalties Program	34,000
(2)	$35,000 to establish a new community penalties program to be located in the 16thB Superior Court Division;  
(3)	$35,000 to establish a new community penalties program to be located in the Third Superior Court Division;  
(4)	$35,000 to establish a new community penalties program to be located in Nash County;
(5)	$45,000 to provide contractual services to Sampson, Duplin, and Jones Counties through Jacksonville Community Penalties, Inc.;
(6)	$26,705 to provide contractual services to Cleveland and Lincoln Counties through Gaston Community Penalties, Inc.; and
(7)	$117,700 to cover administrative costs.
(b) The Department of Crime Control and Public Safety shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by October 1, 1990, on the use of the funds authorized by this section.

Requested by:   Senator Basnight
––-HIGHWAY PATROL POSITIONS FILLED ONLY IN FISCAL YEAR IN WHICH THEY OCCUR
Sec. 90.  G.S. 20-185 is amended by adding a new subsection to read:
"( i)	Positions in the Highway Patrol Division approved by the General Assembly in the first fiscal year of a biennium to be added in the second fiscal year of a biennium may not be filled before adjustments to the budget for the second fiscal year of the budget are enacted by the General Assembly.  If a position to be added in the Highway Patrol Division for the second fiscal year of the biennium requires training, no applicant may be trained to fill the position until the budget adjustments for the second fiscal year are enacted by the General Assembly."

Requested by:   Senator Parnell
––-NO REORGANIZATION OF COMMUNITY PENALTIES PROGRAMS
Sec. 91.  The Department of Crime Control and Public Safety may not restructure or reorganize the community penalties programs.

Requested by:   Senator Marvin
––-ELIGIBILITY FOR VICTIMS COMPENSATION FUNDS
Sec. 92.  G.S. 15B-11(a) reads as rewritten:
	"(a)	An award of compensation will be denied if:
(1)	The claimant fails to file his application for an award within one year after the date of the criminally injurious conduct that caused the injury or death for which he seeks the award;
(2)	The economic loss is incurred after one year from the date of the criminally injurious conduct that caused the injury or death for which the victim seeks the award;
(3)	The criminally injurious conduct was not reported to a law enforcement officer or agency within 72 hours of its occurrence, and there was no good cause for the delay;
(4)	The award would benefit the offender or his accomplice, unless a determination is made that the interests of justice require that an award be approved in a particular case; or
(5)	The criminally injurious conduct occurred while the victim was confined in any State, county, or city prison, correctional, youth services, or juvenile facility, or local confinement facility, or half-way house, group home, or similar facility."

PART XIX.––-DEPARTMENT OF JUSTICE

Requested by:   Senator Marvin
––-STATE BUREAU OF INVESTIGATION SALARY ADJUSTMENT
Sec. 93. Sec. 24 of Chapter 799 of the 1989 Session Laws reads as rewritten:
	"Sec. 24.  The State Bureau of Investigation may continue in fiscal year 1990-91 to pay overtime compensation for 25 supervisory personnel positions as is being done on June 30, 1990, up to a maximum of five thousand two hundred dollars ($5,200) annually per individual.  The Office of State Personnel has reported its findings and recommendations regarding the issue of overtime compensation for State Bureau of Investigation supervisory personnel to the Senate and House Appropriations Committees on Justice and Public Safety and the Fiscal Research Division.  The State Bureau of Investigation shall review and respond to those recommendations and shall provide its written response to the Office of State Personnel, the Senate and House Appropriations Committees on Justice and Public Safety and the Fiscal Research Division by October 31, 1990.  The Office of State Personnel shall continue to study the issue of overtime compensation for State Bureau of Investigation supervisory personnel and shall make its final recommendations to the Senate and House Appropriations Committee on Justice and Public Safety and the Fiscal Research Division by December 15, 1990 as to whether such compensation should continue."

Requested by:   Senators Marvin and Parnell
––-MOBIL PLAN RESPONSE PROJECT
Sec. 94.  Of the funds appropriated to the Department of Justice, the sum of $155,259 for the 1990-91 fiscal year may be used to provide continued support for the staff in the Environmental Protection Section to provide legal services for the Mobil Plan Response Project.

PART XX.––-DEPARTMENT OF TRANSPORTATION

Requested by:   Senator Martin of Pitt
––-CAPITAL IMPROVEMENT REVERSIONS
Sec. 95.  (a)	Unexpended and unencumbered funds in the amount of $1,188,365, from the following capital improvement projects, less $120,615 to cover the listed deficits, shall revert to the Highway Fund on June 30, 1990.
PROJECT	AMOUNT	STATUTORY AUTHORITY
I. Division of Motor Vehicles
Building-Carteret County 	$1,275	SL1983,Ch.757,Sec.5
Building-Raleigh Renovations	525	SL1983,Ch.1034,Sec.3
Roof Replacements-Salisbury and
Greensboro	9,508	SL1985,Ch.480,Sec.5
Newton Building Expansion	30,914	SL1987,Ch.795,Sec.5
Building-Raleigh Renovations	17,693	SL1987,Ch.795,Sec.5
Elizabeth City Building Addition	39	SL1987,Ch.795,Sec.5
Repave Parking Areas-Wilson, 
Kinston, and Hendersonville	3,212	SL1987,Ch.795,Sec.5
Building-Rocky Mount Addition	(3,857)	SL1987,Ch.795,Sec.5
Salisbury Septic System 
Replacement	2,542	SL1987,Ch.1101,Sec.4
II. Crime Control and Public Safety
Law Enforcement Precision Driving
Track and Classroom Tower	270,600	SL1987,Ch.795,Sec.5
Upgrade Communications Tower
and Radio System, Greensboro	59,244	SL1987,Ch.795,Sec.5
III. Division of Highways
Statewide Energy Savings 
Improvement	5,715	SL1983,Ch.757,Sec.5
Method/Design and Sitework	(733)	SL1983,Ch.1034,Sec.3
Method/Construction	(36,255)	SL1985,Ch.480,Sec.5
Method/Supplement	(52,813)	SL1987,Ch.1101,Sec.4
Hatteras/Ferry Facility	16,706	SL1985,Ch.1018,Sec.6
Grantsboro/Equipment Shop	1,326	SL1985,Ch.1018,Sec.6
Charlotte Maintenance Facility	25,233	SL1985,Ch.1018,Sec.6
Carteret/Ferry & Shore Facility 	(26,003)	SL1985,Ch.1018,Sec.6
Carteret/Supplement to Ferry	15,669	SL1985,Ch.1101,Sec.4
Dare/Ferry Replacement Supplement	78,413	SL1987,Ch.1101,Sec.4
Dare/Ferry Replacement	586,068	SL1987,Ch.795,Sec.5 
SL1987,Ch.1101,Sec.4
Raleigh/Thompson Building	7,511	SL1987,Ch.795,Sec.5
Raleigh/Highway Building Roof
Replacement	55,442	SL1987,Ch.1101,Sec.4
Graham/Inspector's Office	(954)	SL1989,Ch.754,Sec.6
Raleigh/Roof Replacement Storage
Warehouse	730	SL1989,Ch.754,Sec.6
(b)	If any additional unexpected expenditures are required on the projects listed in subsection (a) of this section, they shall be paid from funds appropriated from the Highway Fund to the Departments listed for other capital improvements.
(c)	This section shall become effective June 30, 1990.

Requested by:   Senator Martin of Pitt
––-SPECIAL APPROPRIATIONS FOR HIGHWAYS
Sec. 96.  Section 98 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 98.  Of the funds appropriated to the Department of Transportation for special appropriations for highways in Chapter 500 of the 1989 Session Laws, the Current Operations Appropriations Act of 1989, and in this act, sixty-six million dollars ($66,000,000) for fiscal year 1989-90 and two million six hundred twenty-eight thousand five hundred forty-nine dollars ($2,628,549) for fiscal year 1990-91 may be used for:
(1)	Supplemental funding for highway construction, reconstruction, and rehabilitation projects for State and Federal Aid road systems;
(2)	Supplemental funding for the planning, design, and engineering of highways and acquisition of highway rights-of-way;
(3)	Matching funds for unanticipated federal-aid construction funds;
(4)	Payment for all or any portion of the interest or principal on bonds issued by the State for road and highway purposes;
(5)	A means of maintaining a uniform seasonal pace of highway construction, including scheduled ferry replacement.
Construction funds shall be allocated in accordance with G.S. 136-17.2A.  The Department of Transportation shall report to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division in accordance with G.S. 120-70.51(a)(1)."

Requested by:   Senator Martin of Pitt
––-CASH FLOW HIGHWAY FUND APPROPRIATIONS
Sec. 97.  Section 48 of Chapter 500 of the 1989 Session Laws reads as rewritten:
"Sec. 48.  The General Assembly authorizes and certifies anticipated revenues of the Highway Fund as follows:
For Fiscal Year 1991-92	$954,000,000
For Fiscal Year 1992-93	$973,080,000."

Requested by:   Senator Martin of Pitt
––-CASH FLOW - HIGHWAY TRUST FUND APPROPRIATION
Sec. 98.  Section 22 of Chapter 799 of the 1989 Session Laws reads as rewritten:
"Sec. 22.  The General Assembly authorizes and certifies anticipated revenues of the North Carolina Highway Trust Fund as follows:
For fiscal year 1991-92	   $539,700,000
For fiscal year 1992-93	   $555,900,000."

Requested by:   Senator Goldston
––-TRANSFER OF DRIVER EDUCATION PROGRAM TO D.O.T.
Sec. 99.  (a)	G.S. 20-88.1 reads as rewritten:
"§ 20-88.1. Driver training and safety education.
(a)	The Commissioner shall organize, implement, and administer a program of driver education to be offered for all persons of provisional license age.  This program shall be made available to all physically and mentally qualified persons of provisional license age, including public school students, nonpublic school students and out-of-school youths under 18 years of age. The Department of Transportation shall use for this purpose all funds appropriated to it for said purpose, and may use all other funds that become available for its use for said purpose. The drivers' education program established pursuant to this section shall include instructions on the rights and privileges of the handicapped and the signs and symbols used to assist the handicapped relative to motor vehicles, including the ‘international symbol of accessibility' and other symbols and devices as provided in Article 2A of this Chapter. In addition, this program shall include at least six hours of instruction on the offense of driving while impaired and related subjects.
(b)	The Secretary of Transportation shall adopt an interim salary schedule for Driver's Education Training Instructors effective until December 31, 1991. Thereafter, the State Personnel Commission shall establish a position classification plan and a compensation plan for Driver's Education Training Instructors. No educational degree requirement may be a criterion used in setting salaries. 
(c)	All expenses incurred by the State in carrying out the provisions of this section shall be paid out of the Highway Fund.  To the extent that savings can be realized in the driver's education program, unexpended funds may be transferred, quarterly, to the Highway Maintenance Account by the Office of State Budget and Management."
(b)	G.S. 115C-238.5 reads as rewritten:
"§ 115C-238.5.  Flexible funding.
For fiscal years beginning with the 1990-91 fiscal year, the State Board of Education, only upon the recommendation of the State Superintendent, shall increase flexibility in the use of State funds for schools by combining into a single funding category the existing categories for instructional materials, supplies and equipment, textbooks, and testing support.  Only local school administrative units electing to participate in the Performance-based Accountability Program shall be eligible to receive this flexible funding.
Local boards of education shall provide maximum flexibility in the use of funds to individual schools to enable them to accomplish their individual schools' goals."
(c)	The drivers education program, implemented pursuant to Article 14 of Chapter 115C of the General Statutes is transferred from the Department of Public Education to the Department of Transportation.  This transfer shall be a Type I transfer, as defined in G.S. 143A-6.  All personnel actions taken to implement this transfer shall be in accordance with the applicable provisions of Chapter 126 of the General Statutes or Part 3 of Article 22 of Subchapter V of Chapter 115C of the General Statutes as the case may be.  The Secretary of Transportation shall report all personnel actions taken to implement this transfer to the Joint Legislative Highway Oversight Committee.
(d)	G.S. 115C-215 and G.S. 115C-216 are repealed.

Requested by:   Senator Plyler
––-CONFORM DOT MINORITY PARTICIPATION TO FEDERAL REGULATIONS
Sec. 100.  G.S. 136-28.4 reads as rewritten:
"§ 136-28.4.  State policy concerning participation by disadvantaged businesses in highway contracts.
(a)	It is the policy of this State to encourage and promote participation by disadvantaged businesses in contracts let by the Department pursuant to this Chapter for the design, construction, alteration, and maintenance of State highways, roads, streets, and bridges, and in the procurement of materials for such projects.  All State agencies, institutions and political subdivisions shall cooperate with the Department of Transportation and all other State agencies, institutions and political subdivisions in efforts to encourage and promote the use of disadvantaged businesses in such design, construction, alteration, maintenance, and procurement contracts.
(b)	A ten percent (10%) goal for participation by disadvantaged businesses in contracts let by the Department of Transportation for the design, construction, alteration, or maintenance of State highways, roads, streets, or bridges is established.  The Department of Transportation shall endeavor to award to disadvantaged businesses at least ten percent (10%), by value, of the contracts it lets for the design, construction, alteration or maintenance of State highways, roads, streets, or bridges.  The Department shall adopt written procedures specifying the steps it will take to achieve this goal, provided that the Department shall give equal opportunity for contracts it lets without regard to race, religion, color, creed, national origin, sex, age, or handicapping condition, as defined in G.S. 168A-3, to all contractors and businesses otherwise qualified.
(c)	As used in this section, the term ”‘disadvantaged business' has the same meaning as in 49 C.F.R. § 23.62."

Requested by:   Senator Basnight
––-FILL CERTAIN HIGHWAY FUND COMPUTER POSITIONS
Sec. 101.  Positions authorized by the General Assembly in Chapter 752, Session Laws of 1989, funded by the Highway Fund, for the transportation computing center to reorganize and expand the information processing services, shall be filled during the 1990-91 fiscal year.

Requested by:   Senator Martin of Pitt
––-INMATE LABOR FUNDING
Sec. 102.  For the 1990-91 fiscal year, and for subsequent years in which medium custody inmates are used, the Department of Transportation shall reimburse the Department of Correction for the full cost of the Medium Custody Inmate Program.  The cost of this program for the 1990-91 fiscal year is $4,633,856.

PART XXI.––-MISCELLANEOUS PROVISIONS

Requested by:   Senator Royall
––-EXECUTIVE BUDGET ACT APPLIES
Sec. 103.  The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

Requested by:   Senator Royall
––-COMMITTEE REPORT
Sec. 104.  The June 14, 1990, Report of the Senate Appropriations Committee which was distributed in the Senate and used to explain this act, shall indicate action by the General Assembly on this act and shall therefore be used to construe this act, as provided in G.S. 143-15 of the Executive Budget Act, and for such purposes shall be considered a part of this act.

Requested by:   Senator Royall
––-MOST TEXT APPLIES ONLY TO 1990-91
Sec. 105.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1990-91 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 1990-91 fiscal year.

Requested by:   Senator Royall
––-1989-90 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 106.  Except where expressly repealed or amended by this act, the provisions of Chapters 500, 752, 754, 795, and 799 of the 1989 Session Laws as amended remain in effect.
Sec. 107.  Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 1990-91 fiscal year in Chapters 500, 752, 754, 795, and 799 of the 1989 Session Laws that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes.

Requested by:   Senator Royall
––-EFFECT OF HEADINGS
Sec. 108.  The headings to the parts and sections of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act.

Requested by:   Senator Royall
––-SEVERABILITY CLAUSE
Sec. 109.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Requested by:   Senator Royall
––-EFFECTIVE DATE
Sec. 110.  Except as otherwise provided, this act shall become effective July 1, 1990.