GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	4 

SENATE BILL 1426
Appropriations Committee Substitute Adopted 6/15/90
Third Edition Engrossed 6/18/90
House Committee Substitute Favorable and Fourth Edition Engrossed 7/10/90

Short Title:  Operations Appropriations/1990-91.	(Public)
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Sponsors:
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Referred to:  Amendments Adopted; Passed 2nd & 3rd; Ordered Engrossed; Sent to Senate by Special Message.
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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:   Representative Diamont
––-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:  Representative Diamont
––-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 	6
––-CURRENT OPERATIONS/STATE GOVERNMENT/STATE AID 	6
PART II.––-HIGHWAY FUND APPROPRIATIONS 	12
––-CURRENT OPERATIONS/HIGHWAY FUND 	12
––-CURRENT OPERATIONS/STATE AID 	13
PART III.––-BLOCK GRANT APPROPRIATIONS 	13
––-BLOCK GRANT PROVISIONS 	13
PART IV.––-GENERAL PROVISIONS 	21
––-BUDGET FLEXIBILITY 	21
––-BUDGET STABILIZATION RESERVE 	23
––-APPROPRIATIONS OF FUNDS IN ACCORDANCE WITH HOUSE
	BILL 2377 	23
––-LOCAL SHARED REVENUE/CONTINUING APPROPRIATION 	24
––-REMOVE SUNSET ON REGULATION OF DENTAL ANESTHESIA 	26
PART V.––-DEPARTMENT OF ADMINISTRATION 	26
––-N.C. COALITION AGAINST DOMESTIC VIOLENCE FUNDS 	26
––-REDUCTION IN COUNCIL OF GOVERNMENTS FUNDS 	27
––-THE NORTH CAROLINA STATE INDIAN HOUSING AUTHORITY IS A HOUSING AUTHORITY GOVERNED BY CHAPTER 157 OF THE GENERAL STATUTES, AND IS NOT A STATE AGENCY  28
––-LIMIT ON DOMESTIC VIOLENCE AND RAPE CRISIS PROGRAMS 	28
––-PARKING FEES/PARKING DECK CREDIT 	28
PART VI.––-DEPARTMENT OF CULTURAL RESOURCES 	28
––-PERMIT WASHINGTON COUNTY TO USE GRANT-IN-AID FUNDS FOR AN ADDITIONAL PURPOSE  28
––-OLD FORT MUSEUM BRANCH FUNDS 	29
––-ELIMINATE THE MATCHING REQUIREMENT FOR FUNDS PREVIOUSLY APPROPRIATED FOR THE LATHAM HOUSE  29
PART VII.––-GENERAL ASSEMBLY 	29
––-LEGISLATIVE MEMBERS' MILEAGE 	29
––-LRC COMMITTEE ON GROWTH MANAGEMENT CONTINUES AS COMMISSION ON FUTURE STRATEGIES FOR NORTH CAROLINA  29
PART VIII.––-OFFICE OF THE GOVERNOR 	31
––-REDUCTION IN CONTINGENCY AND EMERGENCY FUND ALLOCATION 	31
––-FUND COMMITMENT LIMITATIONS 	32
PART IX.––-DEPARTMENT OF REVENUE 	32
––-MAIL ORDER SALES TAX TO GENERAL FUND 	32
––-INVENTORY REIMBURSEMENT ADJUSTMENT 	32
PART X.––-DEPARTMENT OF SECRETARY OF STATE 	36
––-REPEAL OF STATEWIDE VOTER FILE 	36
––-REDUCE INVENTORY OF SECRETARY OF STATE OF CERTAIN PUBLICATIONS  36
––-DELAY REQUIREMENT OF CORPORATE ANNUAL REPORT UNDER NEW BUSINESS CORPORATION ACT  37
PART XI.––-DEPARTMENT OF INSURANCE 	37
––-RESCUE UNIT FUND CHANGES 	37
PART XII.––-EMPLOYEE SALARIES AND BENEFITS 	40
––-SALARY RELATED CONTRIBUTIONS/EMPLOYERS 	40
––-TO PROVIDE A COST-OF-LIVING INCREASE TO RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM, AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM.  41
––-TO PROVIDE POST-RETIREMENT ALLOWANCE INCREASES TO CERTAIN RETIRED GENERAL EMPLOYEES, LAW OFFICERS, AND THEIR BENEFICIARIES IN THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM AND TO CERTAIN RETIRED LAW OFFICERS AND THEIR BENEFICIARIES IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM.  42
––-PROVIDE RECIPROCITY OF CREDITABLE SERVICE TO DETERMINE ELIGIBILITY FOR BENEFITS AMONG THE LEGISLATIVE RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, AND THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM  43
––-STATE EMPLOYEES/SEVERANCE PAY CLARIFICATION 	46
––-ACCELERATED PAY PLAN FOR LOWEST STATE EMPLOYEES 	46
PART XIII.––-DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES  47
––-USE OF LAPSED SALARIES 	47
––-BUXTON WOODS PURCHASE FUNDS 	47
––-WASTE STREAM ANALYSIS 	47
––-WILDLIFE COMMISSION FUNDS 	50
––-LIABILITY INSURANCE FOR HEALTH CARE EMPLOYEES 	50
––-EPIDEMIOLOGY LINE ITEM TRANSFERS 	51
––-STATEWIDE MEDICAL EXAMINER FUNDS 	51
––-NON-MEDICAID REIMBURSEMENT 	51
––-REDUCE INFANT MORTALITY 	52
––-NURSE MIDWIVES FOR UNDERSERVED COUNTIES 	53
––-LAPSED SALARIES FOR FEDERAL MATCHING FUNDS 	53
––-OFFICE OF WASTE REDUCTION FUNDS 	53
––-EHNR PERMITTING FUNDS 	53
––-DEPARTMENTAL USE OF FEES 	53
––-SICKLE CELL FUNDS/NOT SUBJECT TO BUDGET FLEXIBILITY 	55
PART XIV.––-DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT 	55
––-ECONOMIC DEVELOPMENT PUBLICATIONS 	55
––-NC MANUFACTURING DIRECTORY PROCEEDS 	55
––-WORKER TRAINING TRUST FUND 	56
––-RURAL ECONOMIC DEVELOPMENT CENTER 	57
––-CELEBRATION FOUNDATION, INC. 	58
––-LIMIT FOR RURAL ECONOMIC DEVELOPMENT CENTER REDUCTIONS 	58
––-TRAVEL AND TOURISM FUNDS 	59
PART XV.––-DEPARTMENT OF LABOR 	59
––-LIMIT FOR MIGRANT HOUSING INSPECTION PROGRAM REDUCTIONS 	59
PART XVI.––-DEPARTMENT OF HUMAN RESOURCES 	59
––-MEDICAID PROGRAM FUNDS/ADMINISTRATIVE ACTIVITIES 	59
––-MEDICAID SERVICES COVERAGE CHANGE 	59
––-INFANT MORTALITY REDUCTION 	61
––-REVISED MEDICAID COVERAGE FOR PREGNANT WOMEN
	AND CHILDREN 	62
––-WILLIE M. REPORTING CHANGE 	63
––-EASTERN REGIONAL DETOXIFICATION FUNDS CHANGE 	64
––-CHRONICALLY MENTALLY ILL FUNDS 	64
––-ADAP TRANSPORTATION REIMBURSEMENT 	64
––-SPECIALIZED RESIDENTIAL CENTERS' BED CONVERSIONS 	64
––-DAY CARE RATES 	65
––-COMMUNITY ACTION PROGRAM FUNDS 	67
––-ABORTION FUNDING 	67
––-USE OF STATE FUNDS AT MCLEOD PROGRAM 	68
––-DHR PROGRAMS FUNDS 	68
––-DOMICILIARY RATE INCREASE 	69
––-REST HOME AIDE TRAINING 	69
PART XVII.––-COLLEGES AND UNIVERSITIES 	69
––-AID TO PRIVATE COLLEGES CLARIFICATION 	69
––-UNC EMPLOYEES PAYROLL DEDUCTIONS FOR UNC CHARITIES AND ATHLETICS  70
––-PLAN FOR NURSE MIDWIFERY EDUCATION PROGRAMS 	72
––-RURAL DEVELOPMENT PROGRAMS 	72
––-HIGHER EDUCATION OPPORTUNITY STUDY 	73
––-ECU MRI FUNDS 	75
PART XVIII.––-COMMUNITY COLLEGES 	75
––-RICHMOND COMMUNITY COLLEGE/CHILDBIRTH CLASSES 	76
––-STATE BOARD OF COMMUNITY COLLEGES GUIDELINES 	76
––-COMMUNITY COLLEGE TUITION INCREASE 	76
––-" TECH PREP”IMPLEMENTATION 	77
PART XIX.––-PUBLIC SCHOOLS 	77
––-DIFFERENTIATED PAY FUNDS ALLOCATION 	77
––-CAREER LADDER PROGRAM TRANSITION 	79
––-BASIC EDUCATION PROGRAM FUNDS 	80
––-COMPLETION OF BASIC EDUCATION PROGRAM 	81
––-SMALL SCHOOL PROGRAM ALLOTMENTS 	83
––-LEAVE ACCUMULATION/PUBLIC SCHOOL EMPLOYEES 	84
––-PROSPECTIVE TEACHER SCHOLARSHIP LOAN PROGRAM/EXPANDED TO COVER ADDITIONAL CERTIFIED EMPLOYEES  87
––-STUDY OF NONCERTIFIED EMPLOYEES' SALARIES 	89
––-SAMPSON SCHOOL FUNDS/DEADLINE EXTENDED 	90
––-SCHOOL PSYCHOLOGIST SALARY RECLASSIFICATION 	90
––-NATIONAL CONFERENCE ON GOVERNORS' SCHOOLS 	91
––-PUBLIC SCHOOL TEACHERS/LIABILITY PROTECTION 	91
––-NORTH CAROLINA GEOGRAPHIC ALLIANCE NETWORK FUNDS 	91
––-CLASS SIZE WAIVERS/TEACHER POSITIONS 	91
––-CITIES-IN-SCHOOLS FUNDS 	92
––-JOINT LEGISLATIVE EDUCATION OVERSIGHT COMMITTEE 	92
PART XX.––-DEPARTMENT OF CORRECTION 	94
––-LIMIT USE OF OPERATIONAL FUNDS 	94
––-RAISE PER DIEM REIMBURSEMENT (H2292) 	94
––-SOUTHERN APPALACHIA MAINSTREAM FUNDS (H2291) 	94
––-PRIVATE ALCOHOL AND DRUG ABUSE DETENTION
	CENTER (H2291) 	94
––-CONTINUE CORRECTIONS CENTRALIZATION STUDY 	95
––-FUNDS FOR EARLY OPERATIONAL COSTS 	95
––-ROAD CREW PERFORMANCE AUDIT 	96
––-AIDS EDUCATION PROGRAMS 	96
––-CRIMINAL JUSTICE FACILITY FUND (H2289) 	96
PART XXI.––-JUDICIAL DEPARTMENT 	97
––-RESERVE FOR RESENTENCING HEARINGS IN CAPITAL CASES 	97
––-EXTEND CERTAIN SPECIAL SUPERIOR COURT JUDGE TERMS 	97
––-INCREASED JUDICIAL DEPARTMENT OPERATING EXPENSE REQUIREMENTS  98
––-COMPREHENSIVE CHILD SUPPORT ENFORCEMENT STUDY 	98
––-CREATE DURHAM COUNTY DEFENDER DISTRICT 	98
––-CLARIFY WARRANTLESS ARREST AUTHORITY 	99
––-RAPE VICTIM WITNESS COUNSELOR PROGRAM 	100
PART XXII.––-DEPARTMENT OF CRIME CONTROL AND PUBLIC
	SAFETY 	100
––-CONTINUE SUMMIT HOUSE FUNDING 	100
––-COMMUNITIES PENALTIES PROGRAMS FUNDS 	101
––-NO REORGANIZATION OF COMMUNITY PENALTIES PROGRAMS 	101
––-ELIGIBILITY FOR VICTIMS COMPENSATION FUNDS 	101
––-LAW ENFORCEMENT DRIVING TRACK FUNDS 	102
PART XXIII.––-DEPARTMENT OF JUSTICE 	102
––-STATE BUREAU OF INVESTIGATION SALARY ADJUSTMENT 	102
––-MOBIL PLAN RESPONSE PROJECT 	103
––-USE LAPSED SALARIES FOR SBI CONTRACTUAL POSITIONS 	103
PART XXIV.––-DEPARTMENT OF TRANSPORTATION 	103
––-CAPITAL IMPROVEMENT REVERSIONS 	103
––-CASH FLOW HIGHWAY FUND APPROPRIATIONS 	104
––-CASH FLOW - HIGHWAY TRUST FUND APPROPRIATION 	104
––-MAINTENANCE OF STATE HIGHWAY BRIDGES 	104
––-CONFORM DOT MINORITY PARTICIPATION TO FEDERAL
	REGULATIONS 	105
PART XXV.––-MISCELLANEOUS PROVISIONS 	106
––-EXECUTIVE BUDGET ACT APPLIES 	106
––-COMMITTEE REPORT 	106
––-MOST TEXT APPLIES ONLY TO 1990-91 	106
––-1989-90 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY 	106
––-EFFECT OF HEADINGS 	107
––-SEVERABILITY CLAUSE 	107
––-EFFECTIVE DATE 	107

PART I.––-GENERAL FUND APPROPRIATIONS

––-CURRENT OPERATIONS/STATE GOVERNMENT/STATE AID
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 and appropriations from the General Fund of the State 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/State Aid - General Fund	 1990-91

General Assembly
01.	Current Operations	$   (652,119)
02.	Reserve - Negative Appropriations	(447,788)

Judicial Department
01.	Current Operations	(5,909,241)
02.	Reserve - Negative Appropriations	(4,022,067)

Department of the Governor
01.	Office of the Governor
a.	Current Operations	(147,761)
b.	Reserve - Negative Appropriations	(101,462)

02.	Office of State Budget and Management
a.	Current Operations	(111,904)
b.	Reserve - Negative Appropriations	(76,841)

03.	Special Appropriations - State Aid
a.	Reserve - Negative Appropriations	(22,248)

Lieutenant Governor's Office
01.	Current Operations	(18,434)
02.	Reserve - Negative Appropriations	(12,658)

Department of Secretary of State
01.	Current Operations	(113,771)
02.	Reserve - Negative Appropriations	(78,122)

Department of State Auditor
01.	Current Operations	(243,544)
02.	Reserve - Negative Appropriations	(167,285)

Department of State Treasurer
01.	Current Operations	(147,052)
02.	Reserve - Negative Appropriations	(100,975)

Department of Public Education
01.	Current Operations	(86,005,645)
02.	Reserve - Negative Appropriations	(50,948,170)

Department of Justice
01.	Current Operations	(1,485,247)
02.	Reserve - Negative Appropriations	(1,060,468)

Department of Administration
01.	Administration
a.	Current Operations	(1,128,057)
b.	State Aid	(116,749)
c.	Reserve - Negative Appropriations	(1,047,326)
02.	State Controller
a.	Current Operations	(166,298)
b.	Reserve - Negative Appropriations	(114,191)

Department of Agriculture
01.	Current Operations	(1,250,700)
02.	State Aid	(8,250)
03.	Reserve - Negative Appropriations	(864,479)

Department of Labor
01.	Current Operations	(266,452)
02.	Reserve - Negative Appropriations	(179,867)

Department of Insurance
01.	Current Operations	(403,074)
02.	Reserve - Negative Appropriations	(276,690)

Department of Environment, Health, and
Natural Resources
01.	Current Operations	(906,620)
02.	State Aid	2,942,215
03.	Reserve - Negative Appropriations	(3,570,781)

Office of Administrative Hearings
01.	Current Operations	(62,288)
02.	Reserve - Negative Appropriations	(42,771)

Administrative Rules Review Commission
01.	Current Operations	(8,166)

Department of Human Resources
01.	Alcoholic Rehabilitation Center - 
Black Mountain	(5,429)
02.	Alcoholic Rehabilitation Center - 
Butner	(30,222)
03.	Alcoholic Rehabilitation Center - 
Greenville	53,403
04.	N.C. Special Care Center	(2,794,462)
05.	Black Mountain Center	1,096,184
06.	DHR - Administration and Support Program
a.	Current Operations	(822,619)
b.	Reserve - Negative Appropriations	(23,176,546)
07.	Division of Aging	-   
08.	Schools for the Deaf and Blind	(168,064)
09.	Social Services
a.	Current Operations	11,352,021
b.	State Aid	(1,200,000)
10.	Social Services - State Aid to
Non-State Agencies	100,000
11.	Medical Assistance
a.	Current Operations	(5,634,070)
b.	State Aid	750,000
12.	Division of Services for the Blind	(130,975)

13.	Division of Mental Health,
Developmental Disabilities, and
	Substance Abuse Services
a.	Current Operations	490,250
b.	State Aid	5,520,170
14.	Dorothea Dix Hospital	(2,083,669)
15.	Broughton Hospital	(1,618,647)
16.	Cherry Hospital	(2,050,531)
17.	John Umstead Hospital	(1,399,609)
18.	Western Carolina Center	(204,615)
19.	O'Berry Center	(1,175,094)
20.	Murdoch Center	(593,484)
21.	Caswell Center	(3,753,347)
22.	Division of Facility Services	-   
23.	Division of Vocational
Rehabilitation Services	(826,140)
24.	Division of Youth Services	97,500
Total Department of
Human Resources	(28,207,995)

Department of Correction
01.	Current Operations	9,316,030
02.	State Aid	190,000
03.	Reserve - Negative Appropriations	(8,635,480)

Department of Transportation
01.	State Aid Aeronautics
a.	Reserve - Negative Appropriations	(134,241)
02.	Aid to Railroads	(66,002)

Department of Economic and
Community Development
01.	Economic and Community Development
a.	Current Operations	(462,255)
b.	State Aid	(425,000)
c.	Reserve - Negative Appropriations	(609,249)
02.	Microelectronics Center
a.	State Aid	(3,071,670)
b.	Reserve - Negative Appropriations	(441,529)
03.	Biotechnology Center
a.	State Aid	(414,860)
b.	Reserve - Negative Appropriations	(170,922)

Department of Revenue
01.	Current Operations	(1,703,372)
02.	Reserve - Negative Appropriations	(1,169,649)

Department of Cultural Resources
01.	Current Operations	(664,882)
02.	State Aid	(542,775)
03.	Reserve - Negative Appropriations	(829,258)

Department of Crime Control
and Public Safety
01.	Current Operations	(922,028)
02.	State Aid	165,000
03.	Reserve - Negative Appropriations	(605,653)

University of North Carolina - Board
of Governors

01.	Reserve - Negative Appropriations	(24,766,659)
02.	General Administration	(1,837,118)
03.	University Operations - 
a.	Current Operations Lump Sum	(885,814)
04.	Related Educational Programs
a.	Current Operations	(120,048)
b.	State Aid	(1,265,421)
05.	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)
06.	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)
07.	University of North Carolina at
Greensboro	(1,807,442)
08.	University of North Carolina at
Charlotte	(1,846,863)
09.	University of North Carolina at
Asheville	(498,626)
10.	University of North Carolina at
Wilmington	(1,057,170)
11.	East Carolina University
a.  Academic Affairs	(2,428,095)
b.  Division of Health Affairs	(1,232,739)
12.	North Carolina Agricultural and
Technical State University	(1,147,342)
13.	Western Carolina University	(1,137,402)
14.	Appalachian State University	(1,724,988)
15.	Pembroke State University	(476,647)
16.	Winston-Salem State University	(492,863)
17.	Elizabeth City State
University	(435,513)
18.	Fayetteville State University	(526,273)
19.	North Carolina Central
University	(894,904)
20.	North Carolina School of the Arts	(248,353)
21.	North Carolina Science and
Math High School	(230,356)
22.	University of North Carolina
Hospitals at Chapel Hill	(1,159,170)
Total University of North Carolina	(60,991,627)

Department of Community Colleges
01.	Current Operations	4,547,708
02.	Reserve - Negative Appropriations	(7,912,918)

Contingency and Emergency
01.	Reserve - Negative Appropriations	(23,175)

Reserve for Salary Adjustments
01.	Reserve - Negative Appropriations	(7,741)

Reserve - Accounting System	3,000,000

Debt Service	4,720,800

GRAND TOTAL CURRENT OPERATIONS–
GENERAL FUND	$ (255,416,089)

PART II.––-HIGHWAY FUND APPROPRIATIONS

––-CURRENT OPERATIONS/HIGHWAY FUND
Sec. 4.  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	(54,963,462)
b.	Ferry Operations	(373,298)
c.	State Maintenance
(01)	Primary	3,332,413
(02)	Secondary	5,899,805
(03)	Urban	899,160
(04)	Contract Resurfacing	9,543,039
03.	Division of Motor Vehicles	3,639,213

Appropriations for Other State Agencies
01.	Crime Control and Public
Safety	(3,167,748)
02.	Other Agencies
a.	Department of Correction	2,883,856

Reserve for Unforeseen Events	2,145,177

GRAND TOTAL CURRENT OPERATIONS–
HIGHWAY FUND	$ (30,177,238)

––-CURRENT OPERATIONS/STATE AID
Sec. 5.  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)

PART III.––-BLOCK GRANT APPROPRIATIONS

Requested by: Representatives B. Ethridge, Redwine, and Gardner
––-BLOCK GRANT PROVISIONS
Sec. 6. (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.––-GENERAL PROVISIONS

Requested by:   Representative Diamont
––-BUDGET FLEXIBILITY
Sec. 7. (a) Section 48 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 48.  Sections 156 through 160 of Chapter 479 of the 1985 Session Laws, as amended, and G.S. 143-16.3, do not apply to the extent that the Director of the Budget finds that compliance is impossible and that deviation is necessary because of complications in the budget process that were not contemplated when the budget for the 1989-91 fiscal biennium was enacted.
The Director of the Budget shall report, on a monthly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office on any deviations from Sections 156 through 160 of Chapter 479 of the 1985 Session Laws, as amended, and G.S. 143-16.3, and the reasons it was impossible to comply.
This section authorizes deviations from Sections 156 through 160 of Chapter 479 of the 1985 Session Laws, as amended, and G.S. 143-16.3, to consolidate programs, even if the consolidation requires that fund codes be combined; provided, however, this section does not authorize the elimination of a program that the appropriations committees of the Senate or the House of Representatives have specifically considered during the 1990 Regular Session of the 1989 General Assembly and continued funding for the 1990-91 fiscal year."
(b)	G.S. 143-27 reads as rewritten:
"§ 143-27. Appropriations to educational, charitable and correctional institutions are in addition to receipts by them.
All appropriations now or hereafter made to the educational institutions, and to the charitable and correctional institutions, and to such other departments and agencies of the State as receive moneys available for expenditure by them are declared to be in addition to such receipts of said institutions, departments or agencies, and are to be available as and to the extent that such receipts are insufficient to meet the costs anticipated in the budget authorized by the General Assembly, of maintenance of such institutions, departments, and 
agencies."
(c) G.S. 143-23(a1) reads as rewritten:
"(a1)	No transfers may be made between line items in the budget of any department, institution, or other spending agency; however, with the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for a line item if the overexpenditure is:
(1)	In a program for which funds were appropriated for that fiscal period and the total amount spent for the program is no more than was appropriated for the program for the fiscal period;
(2)	Required to continue a program because of unforeseen events, so long as the scope of the program is not increased;
(3)	Required by a court, Industrial Commission, or administrative hearing officer's order or award or to match unanticipated federal funds;
(4)	Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; or
(5)	Required to call out the National Guard.
The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office the reason if the amount expended for a program is more than the amount appropriated for it from all sources.
Lapsed salary funds that become available from vacant positions may not be used for new permanent employee positions or to raise the salary of existing employees.
As used in this subsection, ‘program' means a group of expenditure and receipt line items for support of a specific budgeted activity outlined in the certified budget for each department, agency, or institution, as designated by the four-digit fund (purpose)	number in the Budget Preparation System.
The requirements in this section that the Director of the Budget report to the Joint Legislative Commission on Governmental Operations shall not apply to expenditures of receipts by entities that are wholly receipt supported, except for entities supported by the Wildlife Resources Fund."
(d) The Office of State Budget and Management shall provide a quarterly report to each member of the General Assembly and to the Joint Legislative Commission on Governmental Operations on budgetary actions taken pursuant to this section.  The Office of State Budget and Management shall also report to the appropriations committees of the Senate and the House of Representatives prior to March 15, 1991, on budgetary actions taken through February 28, 1991, pursuant to this section and any other such actions anticipated during the 1990-91 fiscal year.
(e) All reductions achieved pursuant to the provisions of this section shall be temporary unless they are made permanent by the General Assembly.
(f) The Governor shall submit to the General Assembly with his proposed budget for the 1991-93 fiscal biennium a report of which items in the proposed budget are continuations of budget reductions achieved pursuant to the provisions of this section.
(g) This section shall not be construed to permit the creation of any new programs not authorized by the General Assembly.
(h) This section applies to the the 1990-91 fiscal year only.  Subsections (a) through (c) of this section apply only to the extent the Director of the Budget finds necessary to achieve the reductions set out as "Reserves for Negative Appropriations”in the appropriations for each department.

Requested by:   Representative Diamont
––-BUDGET STABILIZATION RESERVE
Sec. 8.  There is appropriated from the General Fund to the Office of State Budget and Management the sum of $141,000,000 for the 1990-91 fiscal year for the initial establishment of a Budget Stabilization Reserve.  The purpose of the Reserve is to provide a mechanism to stabilize the annual funding availability for carrying out State programs and providing financial assistance to local government units.
It is the intent of the General Assembly that the 1991 General Assembly enact laws establishing a permanent budget stabilization reserve.
The funds in the Reserve shall not be spent during the 1990-91 fiscal year without the prior approval of the General Assembly.

Requested by:  Representative Diamont
––-APPROPRIATIONS OF FUNDS IN ACCORDANCE WITH HOUSE BILL 2377
Sec. 9.  Appropriations from the General Fund for the 1990-91 fiscal year are made, in accordance with Chapter 813 of the 1989 Session Laws, House Bill 2377, according to the following schedule:

01. Appropriation of franchise tax revenues,
pursuant to G.S. 105-116 and G.S. 105-120	$121,900,000
02. Appropriation of intangibles tax revenues,
pursuant to G.S. 105-213	99,700,000
03. Appropriation of beverage tax revenues,
pursuant to G.S. 105-113.82	21,100,000
The amounts designated for the disbursements are based on estimates.  If the amount designated is insufficient to pay for the disbursement of franchise tax, intangibles tax, or beverage tax revenue, the State Budget Officer shall withhold from net collections under Article 3, Article 2B, or Article 7  of Chapter 105 of the General Statutes, as appropriate, the remaining amount necessary to pay for the disbursement.  If the amount designated is more than the amount needed to pay for any of the disbursements, the excess at the end of the fiscal year shall revert to the General Fund.

Requested by:  Representative Barnes
––-LOCAL SHARED REVENUE/CONTINUING APPROPRIATION
Sec. 10. (a)	G.S. 105-116(d), as rewritten by Chapter 813 of the 1989 Session Laws, reads as rewritten:
	"(d)	Appropriation.  There is annually appropriated from the General Fund to each municipality an amount that equals three and nine hundredths percent (3.09%) of the taxable gross receipts derived, from April 1 of the preceding fiscal year to the following March 31, by an electric power company and a natural gas company from sales within the municipality of the commodities and services described in subsection (a).  The Secretary of Revenue shall transfer the amount appropriated to a municipality in quarterly installments on or before September 15, December 15, March 15, and June 15 based on the taxable gross receipts derived within the municipality during the preceding calendar quarter.  If a company's report does not state the company's taxable gross receipts derived within a municipality, the Secretary of Revenue shall determine a practical method of allocating part of the company's taxable gross receipts to the municipality.  Before transferring the amount appropriated by this subsection, the Secretary of Revenue shall certify the amount to be transferred to the State Controller.  The appropriation made by this subsection need not be included in the Current Operations Appropriations Act, but shall be a continuing appropriation.
As used in this subsection, the term ‘municipality' includes an urban service district defined by the governing board of a consolidated city-county.  The amount due an urban service district shall be distributed to the governing board of the consolidated city-county."
(b) G.S. 105-120(c), as rewritten by Chapter 813 of the 1989 Session Laws, reads as rewritten:
"(c)	Appropriation.  There is annually appropriated from the General Fund to each municipality an amount that equals three and nine hundredths percent (3.09%) of the taxable gross receipts derived, from April 1 of the preceding fiscal year to the following March 31, from local telecommunications service provided within the municipality.  The Secretary of Revenue shall transfer the amount appropriated to a municipality in quarterly installments on or before September 15, December 15, March 15, and June 15 based on the taxable gross receipts derived within the municipality during the preceding calendar quarter.  If a company's report does not state the company's taxable gross receipts derived within a municipality, the Secretary of Revenue shall determine a practical method of allocating part of the company's taxable gross receipts to the municipality.  Before transferring the amount appropriated by this subsection, the Secretary of Revenue shall certify the amount to be transferred to the State Controller.  The appropriation made by this subsection need not be included in the Current Operations Appropriations Act, but shall be a continuing appropriation.
As used in this subsection, the term ‘municipality' includes an urban service district defined by the governing board of a consolidated city-county.  The amount due an urban service district shall be distributed to the governing board of the consolidated city-county."
(c) G.S. 105-113.82(h), as rewritten by Chapter 813 of the 1989 Session Laws, reads as rewritten:
"(h)	Act. The appropriations made by this section need not be included in the Current Operations Appropriations Act, but shall be a continuing appropriation."
(d) G.S. 105-213(a), as rewritten by Chapter 813 of the 1989 Session Laws, reads as rewritten:
	"(a) There is annually appropriated from the General Fund to counties and municipalities the amount of revenue collected under this Article during the preceding fiscal year, plus an amount equal to forty percent (40%) of the tax collected on accounts receivable during the preceding fiscal year and less an amount equal to the costs during the preceding fiscal year of:
(1)	Refunds made during the fiscal year of taxes levied under this Article.
(2)	The Department of Revenue to collect and administer the taxes levied under this Article.
(3)	The Department of Revenue in performing the duties imposed by Article 15 of this Chapter.
(4)	The Property Tax Commission.
(5)	The Institute of Government in operating a training program in property tax appraisal and assessment.
The appropriation shall be distributed by August 30 of each year.  The appropriation need not be included in the Current Operations Appropriations Act, but shall be a continuing appropriation.
To distribute the appropriation, the Secretary of Revenue shall keep a separate record by counties of the taxes collected under this Article and  shall certify to the State Controller and to the State Treasurer the amount to be distributed to each county and municipality in the State.  The State Controller shall then issue a warrant on the State Treasurer to each county and municipality in the amount certified.
	The Secretary shall allocate the amount appropriated under this Article 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 amounts so allocated to each county shall in turn be divided between the county and the municipalities 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 purpose of computing the distribution of the intangibles tax to any county and the municipalities located in the county 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.
The chairman of each board of county commissioners and the mayor of each municipality shall report to the Secretary of Revenue information requested by the Secretary to enable the Secretary to distribute the amount appropriated by this section.  If a county or municipality fails to make a requested report within the time allowed, the Secretary may disregard the county or municipality in distributing the amount appropriated by this section.  The amount distributed to each county and municipality shall be used by the county or municipality in proportion to property tax levies made by it for the various funds and activities of the county or municipality, unless the county or municipality has pledged the amount to be distributed to it under this section in payment of a loan agreement with the North Carolina Solid Waste Management Capital Projects Financing Agency.  A county or municipality that has pledged amounts distributed under this section in payment of a loan agreement with the Agency may apply the amount the loan agreement requires."

Requested by:   Representative Jack Hunt
––-REMOVE SUNSET ON REGULATION OF DENTAL ANESTHESIA
Sec. 11. (a) Chapter 1073 of the 1987 Session Laws is reenacted, and Section 2 of that act reads as rewritten:
"Sec. 2. This act is effective upon ratification.."
(b) This section shall become effective June 29, 1990.

PART V.––-DEPARTMENT OF ADMINISTRATION

Requested by:   Representatives Easterling and Michaux
––-N.C. COALITION AGAINST DOMESTIC VIOLENCE FUNDS
Sec. 12.  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:   Representatives Easterling and Michaux
––-REDUCTION IN COUNCIL OF GOVERNMENTS FUNDS
Sec. 13.  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."

Requested by:   Representative DeVane
––-THE NORTH CAROLINA STATE INDIAN HOUSING AUTHORITY IS A HOUSING AUTHORITY GOVERNED BY CHAPTER 157 OF THE GENERAL STATUTES, AND IS NOT A STATE AGENCY
Sec. 14.  (a) The Director of the Office of Indian Housing has stated that if the North Carolina State Indian Housing Authority is a State agency, then it will be ineligible to receive more than $1,000,000 per year in federal assistance.  This section clarifies that the Authority is not a State agency.
(b) G.S. 157-66 reads as rewritten:
"§ 157-66. Authority created.
There is hereby created and established a public body corporate and politic to be known as the North Carolina State Indian Housing Authority which shall be governed by the provisions of law controlling housing authorities as set out in this Chapter as well as other applicable provisions of the General Statutes.  It is the intent of the General Assembly that the North Carolina State Indian Housing Authority not be treated as a State agency for any purpose, but rather that it be treated as a housing authority as set out above."

Requested by:  Representatives Easterling and Michaux
––-LIMIT ON DOMESTIC VIOLENCE AND RAPE CRISIS PROGRAMS
Sec. 15.  Notwithstanding the budget flexibility authorized in Section 7 of this act, no reductions for the 1990-91 fiscal year may be taken by the Department of Administration for the Domestic Violence and Rape Crisis Programs.

Requested by:  Representative Ramsey
––-PARKING FEES/PARKING DECK CREDIT
Sec. 16.  The Department of Administration shall make quarterly deposits to total $1,908,300 of the parking fees collected in the 1990-91 fiscal year with the State Treasurer as a nontax revenue, to offset the General Fund appropriation for principal and interest on the parking deck authorized by Chapter 1048 of the 1987 Session Laws, Regular Session 1988.

PART VI.––-DEPARTMENT OF CULTURAL RESOURCES

Requested by:   Representative Easterling
––-PERMIT WASHINGTON COUNTY TO USE GRANT-IN-AID FUNDS FOR AN ADDITIONAL PURPOSE
Sec. 17.  Funds appropriated in Chapter 830 of the 1987 Session Laws for Washington County for a grant-in-aid to be used in preserving the history of the County by microfilming The Roanoke Beacon, the local newspaper, may be used by Washington County to pay a museum curator.

Requested by:   Representative R. Hunter
––-OLD FORT MUSEUM BRANCH FUNDS
Sec. 18.  The unexpended balance of funds appropriated in the amount of $50,000 to the Department of Cultural Resources in Section 4 of Chapter 1014 of the 1985 Session Laws, 1986 Regular Session, may be used for capital improvements for Old Fort Branch Museum (Mountain Gateway Museum).

Requested by:   Representative James
––-ELIMINATE THE MATCHING REQUIREMENT FOR FUNDS PREVIOUSLY APPROPRIATED FOR THE LATHAM HOUSE
Sec. 19.  Section 20 of Chapter 778 of the 1985 Session Laws reads as rewritten:
"Sec. 20.  There is appropriated from the General Fund to the Department of Cultural Resources, Division of Archives and History, the sum of ten thousand dollars ($10,000) for fiscal year 1985-86 to assist in the adaptive restoration of the Latham House. "

PART VII.––-GENERAL ASSEMBLY

Requested by:   Representatives Beall and Michaux
––-LEGISLATIVE MEMBERS' MILEAGE
Sec. 20. (a) G.S. 120-3.1(d) is repealed.
(b) This act shall become effective upon the convening of the 1991 Regular Session of the General Assembly.

Requested by:   Representative Perdue
––-LRC COMMITTEE ON GROWTH MANAGEMENT CONTINUES AS COMMISSION ON FUTURE STRATEGIES FOR NORTH CAROLINA
Sec. 21.  Chapter 120 of the General Statutes is amended by adding a new Article to read:
“ARTICLE 13B.
"Joint Legislative Commission on Future Strategies
for North Carolina.
"§ 120-84.6.  Purpose.
There is hereby established the Joint Legislative Commission on Future Strategies for North Carolina, hereinafter called the Commission, which shall review future trends and events to consider how they may affect North Carolina, and develop policy options for how State and local governments and the general public can be prepared to benefit from these future trends and events.
"§ 120-84.7.  Membership.
The Commission shall consist of six members of the House of Representatives appointed by the Speaker of the House of Representatives and six members of the Senate appointed by the President Pro Tempore of the Senate.  Members shall serve for two-year terms beginning on the convening of the General Assembly in each odd-numbered year; provided, however, the terms of initial members shall begin on appointment and end on the day of the convening of the 1991 General Assembly.  Members shall not be disqualified from completing a term of service on the Commission because they fail to run or are defeated for reelection.  Resignation or removal from the General Assembly shall constitute resignation or removal from membership on the Commission.
Vacancies created by resignation or otherwise shall be filled by the original appointing authority.
A House cochairman and a Senate cochairman shall be elected by the Commission from among its members.
"§ 120-84.8.  Powers and duties.
The Commission shall have the following powers and duties:
(1)	To review reports which propose future strategies, goals, or recommendations for North Carolina, and determine the status of the proposed strategies, goals, and recommendations.
(2)	To review governmental and nongovernmental research and studies relating to current and future trends and events, and to assess the impact of these future trends and events on future governmental policy.
(3)	To review current statutes related to comprehensive planning at all levels of government and propose changes considered most consistent with state-of-the-art comprehensive growth management and development policies.
(4)	To review the history and current status of intergovernmental relationships in North Carolina.
(5)	To conduct periodic surveys to assess citizen attitudes toward current trends and determine their impact on strategic policy options.
(6)	To undertake such additional studies, surveys, or evaluations as may, from time to time, be requested by the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Legislative Research Commission, or either house of the General Assembly.
(7)	To appoint advisory committees, which may include government officials and interested citizens, to examine specific issues as determined by the Commission.  A Commission member shall be appointed chairman of such advisory committees.
(8)	To conduct studies of long range fiscal impact of proposals or policies under review by the Commission.
(9)	To develop rules regarding the selection, design, methodology, and execution of citizens attitude surveys, research and study topics for Commission approval and consideration.
(10)	To issue reports, forecasts, and recommendations to the General Assembly, from time to time, on matters relating to the powers and duties set out in this section.
"§ 120-84.9.  Reports to the General Assembly.
The reports shall contain findings, recommendations, and forecasts of potential future strategies  and policy alternatives which may be beneficial to State and local governments and the general public of North Carolina.
"§ 120-84.10.  Additional powers.
The Commission shall have the following additional powers:
(1)	While in the discharge of official duties, to have access to any paper or document, and may compel the attendance of any State official or employee before the Commission or secure any evidence under the provisions of G.S. 120-19.  In addition, the provisions of G.S. 120-19.1 through G.S. 120-19.4 shall apply to the proceedings of the Commission as if it were a joint committee of the General Assembly.
(2)	To apply for and receive gifts and grants from private sources to assist the Commission in fulfilling its duties, subject to the approval of the Legislative Services Commission.
"§ 120-84.11.  Compensation and expenses of Commission members.
Members of the commission shall serve without pay but shall receive per diem and subsistence in accordance with G.S. 138-5, G.S. 138-6, or G.S. 120-3.1, as appropriate.  The facilities of the State Legislative Building and any other State office building used by the General Assembly, shall be available to the Commission for its use.
"§ 120-84.12.  Commission staffing.
(a)	The Commission may use available clerical employees of the General Assembly, with the approval of the Legislative Services Commission.
(b)	The Commission may, with the consent of the Legislative Services Commission, use employees of the Fiscal Research, Legislative Automation, General Research, Bill Drafting, and Public Information Divisions of the Legislative Services Commission."

PART VIII.––-OFFICE OF THE GOVERNOR

Requested by:   Representative Michaux
––-REDUCTION IN CONTINGENCY AND EMERGENCY FUND ALLOCATION
Sec. 22.  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 $201,825 for the 1990-91 fiscal year shall be designated for other allocations from the Contingency and Emergency Fund."

Requested by:  Representative Stam
––-FUND COMMITMENT LIMITATIONS
Sec. 23.  G.S. 143-18 reads as rewritten:
"§ 143-18. Unencumbered balances to revert to treasury; capital appropriations excepted.
All unencumbered balances of maintenance appropriations shall revert to the State treasury to the credit of the general fund or special funds from which the appropriation and/or appropriations, were made and/or expended, at the end of each fiscal year; except that capital expenditures for the purchase of land, the erection of buildings, new construction or renovations in progress shall continue in force until the attainment of the object or the completion of the work for which the appropriations are made; except that maintenance appropriations to the General Assembly shall remain available until expended, unless otherwise provided by the Legislative Services Commission.
As used in this section, ‘unencumbered' means not obligated in the  form of purchase orders, contracts, renovations in progress or salary  commitments. No purchase orders, contracts, renovations in progress, or salary commitments shall be entered into during a fiscal year unless sufficient funds are available within the purpose for which the funds were appropriated by the General Assembly or as authorized by the Director of the Budget as allowed by law."

PART IX.––-DEPARTMENT OF REVENUE

Requested by:  Representative Diamont
––-MAIL ORDER SALES TAX TO GENERAL FUND
Sec. 24.  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.

Requested by:   Representative Dickson
––-INVENTORY REIMBURSEMENT ADJUSTMENT
Sec. 25.  (a) Notwithstanding the provisions of G.S. 105-275.1, the reimbursement to each city and county under G.S. 105-275.1, as amended by this section, for the 1990-91 fiscal year shall be reduced by nineteen one-hundredths of one percent (0.19%).  The reimbursements under G.S. 105-275.1 for the 1991-92 fiscal year shall be calculated as if the amount distributed for the 1990-91 fiscal year had not been reduced pursuant to this subsection.
(b) G.S. 105-275.1 reads as rewritten:
"§ 105-275.1. Reimbursement for exclusion of manufacturers' inventories and poultry and livestock.
(a)	Initial Distribution. – On or before January 15, 1989, the governing body of each county and each city shall furnish to the Secretary a list of (i) all the inventories owned by manufacturers 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; (ii) all livestock and poultry and feed used in the production of livestock and poultry that was required to be listed and assessed as of January 1, 1987, and was listed on or before September 1, 1987, in the county or city under this Subchapter; (iii) all the crops and other agricultural or horticultural products held for sale, whether in process or ready for sale, owned by taxpayers regularly engaged in the growth, breeding, raising, or other production of new products for sale, that were not included under subdivision (ii) above and 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; (iv) in the case of a city, all the inventories owned by manufacturers that were located as of January 1, 1987, in an area for which the city began annexation proceedings before September 1, 1987, and which became a part of the city after January 1, 1987, and before January 1, 1988; and (v) in the case of a city, all the inventories owned by manufacturers that were located as of January 1, 1987, in an area for which the city began annexation proceedings before September 1, 1987, and which became a part of the city after January 1, 1988, and before July 1, 1990.  The list shall contain the value of the inventories and other items 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 manufacturers and other items described in subdivisions (ii) and (iii) above 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.
	On or before March 20, 1989, the Secretary shall pay to each county and city that submitted a list under this subsection an amount equal to the county or city average rate, as provided below, multiplied by the value of the inventories described in subdivisions (i) and (iv) above contained in the list submitted by the city or county, 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.
On or before March 20, 1989, the Secretary shall also pay to each county and city that submitted a list under this subsection an amount equal to the average rate, as provided below, 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 inventories owned by manufacturers 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.
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.
	Of the funds received by each county and city pursuant to this subsection, 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 in the district) shall be distributed among the districts in the county or city as soon as practicable after the city or county receives funds under this subsection.  The county or city shall distribute to each special district in the county or city an amount equal to the average rate for the district multiplied by the value of the inventories owned by manufacturers 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.  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.  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 this subsection.
(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 pay to each county and city the amount it received under this section the preceding year plus an amount equal to the county or city average rate multiplied by the value of the items described in subdivision (v) of subsection (a) contained in the list submitted by 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.  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.
(c)	Use. – Funds received by a county, city, or special district under this section may be used for any lawful purpose.
(d)	‘City' Defined. – As used in this section, the term ‘city' has the same meaning as in G.S. 153A-1(1).
(e)	Source of Funds. – To pay for the distribution required by this section and the cost to the Department of Revenue of making the distribution, the Secretary of Revenue shall draw from the Local Government Tax Reimbursement Reserve an amount equal to the amount distributed and the cost of making the distribution.
(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 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 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 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 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."
(c)	A city affected by the amendment to G.S. 105-275.1 provided in this section shall submit to the Secretary of Revenue a list of the manufacturers' inventories in the annexed area as soon as practicable.
(d)	This section is effective upon ratification.

PART X.––-DEPARTMENT OF SECRETARY OF STATE

Requested by:   Representative Easterling
––-REPEAL OF STATEWIDE VOTER FILE
Sec. 26.  G.S. 163-66.1 is repealed.

Requested by:   Representative Easterling
––-REDUCE INVENTORY OF SECRETARY OF STATE OF CERTAIN PUBLICATIONS
Sec. 27.  Effective upon ratification of this act, the Publications Division of the Department of the Secretary of State may reduce inventories of the Journals for the North Carolina House of Representatives, the Journals of the State Senate, the Session Laws of North Carolina, and the North Carolina Manual as provided by this section.  All such publications issued prior to 1987-88 may be made available at cost of postage only for a 60 day period commencing on the date of ratification of this act.  After 60 days any such inventory exceeding 50 copies of each journal, 150 copies of each session laws, and 50 copies of each manual, shall be recycled or destroyed.

Requested by:   Representative Michaux
––-DELAY REQUIREMENT OF CORPORATE ANNUAL REPORT UNDER NEW BUSINESS CORPORATION ACT
Sec. 28. (a) Section 3 of Chapter 265, Session Laws of 1989, reads as rewritten:
"Sec. 3.  This act shall become effective July 1, 1990, except that G.S. 55-16-22 shall become effective July 1, 1991."
(b)	This section is effective June 30, 1990.

PART XI.––-DEPARTMENT OF INSURANCE

Requested by:   Representative Tart
––-RESCUE UNIT FUND CHANGES
Sec. 29. (a) G.S. 58-87-5 reads as rewritten:
"§ 58-87-5.  Volunteer Rescue/EMS Fund.
(a)	There is created in the Department of Insurance the Volunteer Rescue/EMS Fund to provide matching grants to volunteer rescue units providing rescue or rescue and emergency medical services to purchase equipment and make capital improvements.  An eligible rescue or rescue/EMS unit may apply to the Department of Insurance for a grant under this section.  The application form and criteria for grants shall be established by the Department.  The Office of Emergency Medical Services in the Department of Human Resources shall provide the Department with an advisory priority listing of EMS equipment eligible for funding.  The State Treasurer shall invest the Fund's assets according to law, and the earnings shall remain in the Fund.  Beginning December 15, 1989, and on each December 15 thereafter, the Department shall make grants to eligible rescue or rescue/EMS units subject to the following limitations:
(1)	The size of a grant may not exceed fifteen thousand dollars ($15,000);
(2)	The applicant shall match the grant on a dollar-for-dollar basis with non-State funds;
(3)	The grant may be used only for equipment purchases or capital expenditures; and
(4)	An applicant may receive no more than one grant per fiscal year.
In awarding grants under this section, the Department shall to the extent possible select applicants from all parts of the State based upon need.  Up to two percent (2%) of the Fund may be used for additional staff and resources to administer the Fund in each fiscal year.  In addition, notwithstanding G.S. 58-78-20, up to four percent (4%) of the Fund may be used for additional staff and resources for the North Carolina Fire and Rescue Commission.
(b)	A rescue or rescue/EMS unit is eligible for a grant under this section if:
	(2)	It is all volunteer, except that the rescue or rescue/EMS unit may have paid members, not to exceed two positions, either full-time or part-time; and
(3)	It has been recognized by the Department as an organization that provides rescue or rescue and emergency medical services; and
(4)	It satisfies the eligibility criteria established by the Department under subsection (a) of this section.
(c)	For the purpose of this section and Article 88 of this Chapter, ‘rescue' means the removal of individuals facing external, nonmedical, and nonpatient related peril to areas of relative safety.  A ‘rescue unit' or ‘rescue squad' means a group of individuals who are not necessarily trained in emergency medical services, fire fighting, or law enforcement, but who expose themselves to an external, nonmedical, and nonpatient related peril to effect the removal of individuals facing the same type of peril to areas of relative safety.  The unit or squad must comply with existing State statutes and with eligibility criteria established by the North Carolina Association of Rescue and Emergency Medical Services, Inc."
(b)	G.S. 20-183.7(c) reads as rewritten:
"(c)	Fees collected for inspection certificates are payable to the Division of Motor Vehicles.  The amount of each fee listed in the table below shall be credited to the Highway Fund, the Volunteer Rescue/EMS Fund established in G.S. 58-87-5, the Rescue Squad Workers' Relief Fund established in G.S. 58-88-5, and the Division of Environmental Management of the Department of Environment, Health, and Natural Resources:
			Fund or Agency	Fee Imposed	Fee Imposed
	Under (a)	Under (a1)
Highway Fund	.75	 1.80
Volunteer Rescue/EMS Fund	.18	.18
Rescue Squad Workers' Relief
Fund	.07	.07
Division of Environmental
Management	.00	.35."
(c)	G.S. 58-88-5 reads as rewritten:
"§  58-88-5.  Rescue Squad Workers' Relief Fund; trustees; disbursement of funds.
(a)	The "Rescue Squad Workers' Relief Fund”is created.  It consists of the revenue credited to the Fund under G.S. 20-183.7(c) and shall be used for the purposes set forth in this Article.
	(b)	The Executive Committee of the Association shall be the Board of Trustees of the Fund.  The Board shall consist of the Commander, Vice-Commander, Secretary-Treasurer, and two past Commanders of the Association.  The Commander shall be the Chairman of the Board.  The Commander, Vice-Commander, and Secretary-Treasurer shall appoint the two past Commanders of the Association, who shall serve at the pleasure of the appointing officers.
(c)	The Commissioner of Insurance has exclusive control of the Fund and shall disburse revenue in the Fund to the Association only for the following purposes:
(1)	To safeguard any rescue or EMS worker in active service from financial loss, occasioned by sickness contracted or injury received while in the performance of his or her duties as a rescue or EMS worker.
(2)	To provide a reasonable support for those persons actually dependent upon the services of any rescue or EMS worker who may lose his or her life in the service of his or her town, county, city, or the State, either by accident or from disease contracted or injury received by reason of such service.  The amount is to be determined according to the earning capacity of the deceased.
(3)	To award scholarships to children of members, deceased members or retired members in good standing, for the purpose of attending a two year or four year college or university, and for the purpose of attending a two year course of study at a community college or an accredited trade or technical school, any of which is located in the State of North Carolina.  Continuation of the payment of educational benefits for children of active members shall be conditioned on the continuance of active membership in the rescue or EMS service by the parent or parents.
(4)	To pay death benefits to those persons who were actually dependent upon any member killed in the line of duty.
(5)	Notwithstanding any other provision of law, no expenditures shall be made pursuant to subdivisions (1), (2), (3), and (4) of this subsection unless the Board has certified that such expenditures will not render the Fund actuarially unsound for the purpose of providing the benefits set forth in subdivisions (1), (2), (3), and (4).  If, for any reason, funds made available for subdivisions (1), (2), (3), and (4) are insufficient to pay in full any benefit, the benefits pursuant to subdivisions (1), (2), (3), and (4) shall be reduced pro rata for as long as the amount of insufficient funds exists.  No claims shall accrue with respect to any amount by which a benefit under subdivisions (1), (2), (3), and (4) has been reduced."
(d)	G.S. 58-88-30 reads as rewritten:
"§ 58-88-30.  Administration costs.
The Association shall withhold eight percent (8%) from the money received pursuant to G.S. 20-183.7(c) for the administration of the Fund.  The Commissioner of Insurance shall withhold two percent (2%) from the money received pursuant to G.S. 20-183.7(c) for the administration of the Fund."
(e)  This act shall become effective July 15, 1990.  Section (b) applies to fees collected on or after the effective date.

PART XII.––-EMPLOYEE SALARIES AND BENEFITS

Requested by:   Representative Colton
––-SALARY RELATED CONTRIBUTIONS/EMPLOYERS
Sec. 30.  Section 42(c) of Chapter 752 of the 1989 Session Laws reads as rewritten:
"(c)	The State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 1990-91 fiscal year are (i) eleven and seventy-four hundredths percent (11.74%) - Teachers and State Employees; (ii) sixteen and seventy-four hundredths percent (16.74%) - State Law Enforcement Officers; (iii) eight and thirty-seven hundredths percent (8.37%) - University Employees' Optional Retirement Program; (iv) thirty-one and thirty-six hundredths percent (31.36%) - Consolidated Judicial Retirement System; and (v) forty and twenty-five hundredths percent (40.25%) - Legislative Retirement System.  Each of the foregoing contribution rates includes one and sixty-five hundredths percent (1.65%) for hospital and medical benefits.  The rate for State Law Enforcement Officers includes five percent (5%) for the Supplemental Retirement Income Plan.  The rates for Teachers and State Employees, State Law Enforcement Officers, and for the University Employees' Optional Retirement Program includes fifty-two hundredths percent (0.52%) for the Disability Income Plan."

Requested by:   Representative Colton
––-TO PROVIDE A COST-OF-LIVING INCREASE TO RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM, AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM.
Sec. 31. (a) G.S. 135-5 is amended by adding a new subsection to read:
"( rr)	From and after July 1, 1990, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1989, shall be increased by six and one-tenth percent (6.1%) of the allowance payable on July 1, 1989, in accordance with G.S. 135-5(o).  Furthermore, from and after July 1, 1990, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1989, but before June 30, 1990, shall be increased by a prorated amount of six and one-tenth percent (6.1%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1989, and June 30, 1990."
(b) G.S. 135-65 is amended by adding a new subsection to read:
"( k)	From and after July 1, 1990, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1989, shall be increased by six and one-tenth percent (6.1%) of the allowance payable on July 1, 1989.  Furthermore, from and after July 1, 1990, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1989, but before June 30, 1990, shall be increased by a prorated amount of six and one-tenth percent (6.1%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1989, and June 30, 1990."
(c) G.S. 120-4.22A is amended by adding a new subsection to read:
"(f)	In accordance with subsection (a) of this section, from and after July 1, 1990, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 1990, shall be increased by the same amount as provided to retired members and beneficiaries of the Teachers' and State Employees' Retirement System pursuant to the provisions of G.S. 135-5(rr)."
(d)	G.S. 128-27 is amended by adding a new subsection to read:
"( hh)	From and after July 1, 1990, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1989, shall be increased by six and one-tenth percent (6.1%) of the allowance payable on July 1, 1989, in accordance with G.S. 128-27(k).  Furthermore, from and after July 1, 1990, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1989, but before June 30, 1990, shall be increased by a prorated amount of six and one-tenth percent (6.1%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1989, and June 30, 1990."
(e)  This section shall become effective July 1, 1990.

Requested by:   Representative Colton
––-TO PROVIDE POST-RETIREMENT ALLOWANCE INCREASES TO CERTAIN RETIRED GENERAL EMPLOYEES, LAW OFFICERS, AND THEIR BENEFICIARIES IN THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM AND TO CERTAIN RETIRED LAW OFFICERS AND THEIR BENEFICIARIES IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM.
Sec. 32.  (a) G.S. 128-27 is amended by adding two new subsections to read:
"( ii)	Increases in Allowances to Certain Persons Retired before July 1, 1982.  From and after July 1, 1990, the retirement allowances to or on account of beneficiaries who commenced receiving retirement allowances prior to July 1, 1982, shall be increased in accordance with the following schedule:
Allowances Commenced:	Percentage Increases:
On and after July 1, 1980
but before July 1, 1982	4.0%
On and after July 1, 1977
but before July 1, 1980	6.6%
Before July 1, 1977	9.0%
The post-retirement allowance increases provided by this subsection shall not apply to or on account of beneficiaries retired from the Law Enforcement Officers' Retirement System or the Law Enforcement Officers' Benefit and Retirement Fund.  The post-retirement allowance increases provided by this subsection shall be in addition to any other post-retirement allowance increases provided under this Article by the 1989 Session of the General Assembly (1990 Regular Session) so as not to be compounded on any other such post-retirement allowance increases that may be granted by the 1989 Session of the General Assembly.
(jj)	Increases in Allowances to Certain Persons Retired before July 1, 1981.  From and after July 1, 1990, the retirement allowances to or on account of beneficiaries who commenced receiving retirement allowances from the Law Enforcement Officers' Retirement System or the Law Enforcement Officers' Benefit and Retirement Fund prior to July 1, 1981, shall be increased in accordance with the following schedule:
Allowances Commenced:	Percentage Increases:
On and after July 1, 1980
but before July 1, 1981	 2.3%
On and after July 1, 1977
but before July 1, 1980	 9.3%
On and after July 1, 1976
but before July 1, 1977	14.3%
Before July 1, 1976	21.3%
The post-retirement allowance increases provided by this subsection shall be in addition to any other post-retirement allowance increases provided under this Article by the 1989 Session of the General Assembly (1990 Regular Session) so as not to be compounded on any other such post-retirement allowance increases that may be granted by the 1989 Session of the General Assembly."
(b)	G.S. 135-5 is amended by adding a new subsection to read:
"( ss)	Increases in Allowances to Certain Persons Retired before July 1, 1981.  From and after July 1, 1990, the retirement allowances to or on account of beneficiaries who commenced receiving retirement allowances from the Law Enforcement Officers' Retirement System or the Law Enforcement Officers' Benefit and Retirement Fund prior to July 1, 1981, shall be increased in accordance with the following schedule:
Allowances Commenced:	Percentage Increases:
On and after July 1, 1980
but before July 1, 1981	 2.3%
On and after July 1, 1977
but before July 1, 1980	 9.3%
On and after July 1, 1976
but before July 1, 1977	14.3%
Before July 1, 1976	21.3%
The post-retirement allowance increases provided by this subsection shall be in addition to any other post-retirement allowance increases provided under this Article by the 1989 Session of the General Assembly (1990 Regular Session) so as not to be compounded on any other such post-retirement allowance increases that may be granted by the 1989 Session of the General Assembly."
(c)	This section shall become effective July 1, 1990.

Requested by:   Representative Beard
––-PROVIDE RECIPROCITY OF CREDITABLE SERVICE TO DETERMINE ELIGIBILITY FOR BENEFITS AMONG THE LEGISLATIVE RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, AND THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM
Sec. 33.  (a) Article 1A of Chapter 120 of the General Statutes is amended by adding a new section to read:
"§ 120-4.12A.  Reciprocity of creditable service with other State-administered retirement systems.
(a)	Only for the purpose of determining eligibility for benefits accruing under this Article, creditable service standing to the credit of a member of the Consolidated Judicial Retirement System, Teachers' and State Employees' Retirement System, or Local Governmental Employees' Retirement System shall be added to the creditable service standing to the credit of a member of this System; provided, that in the event a person is a retired member of any of the foregoing retirement systems, such creditable service standing to the credit of the retired member prior to retirement shall be likewise counted.  In no instance shall service credits maintained in the aforementioned retirement systems be added to the creditable service in this System for application of this System's benefit accrual rate in computing a service retirement benefit unless specifically authorized by this Article.
(b)	A person who was a former member of this System and who has forfeited his creditable service in this System by receiving a return of contributions and who has creditable service in the Consolidated Judicial Retirement System, Teachers' and State Employees' Retirement System, or the Local Governmental Employees' Retirement System may count such creditable service for the purpose of restoring the creditable service forfeited in this System under the terms and conditions as set forth in this Article and reestablish membership in this System.
(c)	Creditable service under this section shall not be counted twice for the same period of time whether earned as a member, purchased, or granted as prior service credits."
(b)	Article 3 of Chapter 128 of the General Statutes is amended by adding a new section to read:
"§ 128-26A.  Reciprocity of creditable service with other State-administered retirement systems.
(a)	Only for the purpose of determining eligibility for benefits accruing under this Article, creditable service standing to the credit of a member of the Legislative Retirement System, Consolidated Judicial Retirement System, or the Teachers' and State Employees' Retirement System shall be added to the creditable service standing to the credit of a member of this System; provided, that in the event a person is a retired member of any of the foregoing retirement systems, such creditable service standing to the credit of the retired member prior to retirement shall be likewise counted.  In no instance shall service credits maintained in the aforementioned retirement systems be added to the creditable service in this System for application of this System's benefit accrual rate in computing a service retirement benefit unless specifically authorized by this Article.
(b)	A person who was a former member of this System and who has forfeited his creditable service in this System by receiving a return of contributions and who has creditable service in the Legislative Retirement System, Consolidated Judicial Retirement System, or the Teachers' and State Employees' Retirement System may count such creditable service for the purpose of restoring the creditable service forfeited in this System under the terms and conditions as set forth in this Article and reestablish membership in this System.
(c)	Creditable service under this section shall not be counted twice for the same period of time whether earned as a member, purchased, or granted as prior service credits."
(c)	Article 1 of Chapter 135 of the General Statutes is amended by adding a new section to read:
"§ 135-4A.  Reciprocity of creditable service with other State-administered retirement systems.
(a)	Only for the purpose of determining eligibility for benefits accruing under this Article, creditable service standing to the credit of a member of the Legislative Retirement System, Consolidated Judicial Retirement System, or the Local Governmental Employees' Retirement System shall be added to the creditable service standing to the credit of a member of this System; provided, that in the event a person is a retired member of any of the foregoing retirement systems, such creditable service standing to the credit of the retired member prior to retirement shall be likewise counted.  In no instance shall service credits maintained in the aforementioned retirement systems be added to the creditable service in this System for application of this System's benefit accrual rate in computing a service retirement benefit unless specifically authorized by this Article.
(b)	A person who was a former member of this System and who has forfeited his creditable service in this System by receiving a return of contributions and who has creditable service in the Legislative Retirement System, Consolidated Judicial Retirement System, or the Local Governmental Employees' Retirement System may count such creditable service for the purpose of restoring the creditable service forfeited in this System under the terms and conditions as set forth in this Article and reestablish membership in this System.
(c)	Creditable service under this section shall not be counted twice for the same period of time whether earned as a member, purchased, or granted as prior service credits."
(d)	Article 4 of Chapter 135 of the General Statutes is amended by adding a new section to read:
"§ 135-56A.  Reciprocity of creditable service with other State-administered retirement systems.
(a)	Only for the purpose of determining eligibility for benefits accruing under this Article, creditable service standing to the credit of a member of the Legislative Retirement System, Teachers' and State Employees' Retirement System, or the Local Governmental Employees' Retirement System shall be added to the creditable service standing to the credit of a member of this System; provided, that in the event a person is a retired member of any of the foregoing retirement systems, such creditable service standing to the credit of the retired member prior to retirement shall be likewise counted.  In no instance shall service credits maintained in the aforementioned retirement systems be added to the creditable service in this System for application of this System's benefit accrual rate in computing a service retirement benefit unless specifically authorized by this Article.
(b)	A person who was a former member of this System and who has forfeited his creditable service in this System by receiving a return of contributions and who has creditable service in the Legislative Retirement System, Teachers' and State Employees' Retirement System, or the Local Government Employees' Retirement System may count such creditable service for the purpose of restoring the creditable service forfeited in this System under the terms and conditions as set forth in this Article and reestablish membership in this System.
(c)	Creditable service under this section shall not be counted twice for the same period of time whether earned as a member, purchased, or granted as prior service credits."
(e)  This section shall become effective October 1, 1990.

Requested by:   Representative Barnes
––-STATE EMPLOYEES/SEVERANCE PAY CLARIFICATION
Sec. 34. (a) G.S. 143-27.2 reads as rewritten:
"§ 143-27.2. Discontinued service retirement allowance and severance wages for certain State employees.
When the Director of the Budget determines that the closing of a State institution or a reduction in force will accomplish economies in the State Budget, he shall pay either a discontinued service retirement allowance or severance wages to any affected State employee, provided reemployment is not available. As used in this section, ‘economies in the State Budget' means economies resulting from elimination of a job and its responsibilities or from a lack of funds to support the job. In determining whether to pay a discontinued service retirement allowance or severance wages, the Director of the Budget shall consider the recommendation of the department head involved and any recommendation of the State Personnel Director. Severance wages shall not be paid to an employee who chooses a discontinued service retirement. Severance wages shall not be subject to employer or employee retirement contributions. Severance wages shall be paid according to the policies adopted by the State Personnel Commission.
Notwithstanding any other provisions of the State's retirement laws, any employee of the State who is a member of the Teachers' and State Employees' Retirement System or the Law-Enforcement Officers' Retirement System and who has his job involuntarily terminated as a result of economies in the State Budget may be entitled to a discontinued service retirement allowance, subject to the approval of the employing agency and the availability of agency funds. An unreduced discontinued service retirement allowance, not otherwise allowed, may be approved for employees with 20 or more years of creditable retirement service who are at least 55 years of age; or a discontinued service retirement allowance, not otherwise allowed, may be approved for employees with 20 or more years of creditable retirement service who are at least 50 years of age, reduced by one-fourth of one percent (1/4 of 1%) for each month that retirement precedes his fifty-fifth birthday. In cases where a discontinued service retirement allowance is approved, the employing agency shall make a lump sum payment to the Administrator of the State Retirement Systems equal to the actuarial present value of the additional liabilities imposed upon the System, to be determined by the System's consulting actuary, as a result of the discontinued service retirement, plus an administrative fee to be determined by the Administrator."
(b) This section shall not affect litigation pending as of the date of ratification of this act.

Requested by:   Representative Barnes
––-ACCELERATED PAY PLAN FOR LOWEST STATE EMPLOYEES
Sec. 34.1.  (a)	The State Personnel Commission shall develop an accelerated pay plan for those State employees in the lowest pay grades.  This accelerated pay plan shall be designed to take into consideration the labor market and economic indicators and to advance and retain a fully competent work force.  In developing and implementing this pay plan, the State Personnel Commission shall:
(1)	Identify which pay grades are to be subject to this accelerated pay plan; 
(2)	Adopt policies and rules to implement this plan;
(3)	Review the plan annually; and
(4)	Amend the plan as necessary, based on the labor market and economic indicators.
(b)	Upward movement within the accelerated pay plan shall be based on the job performance of an employee meeting or exceeding performance requirements as determined by a specifically tailored performance appraisal system for employees within those pay grades subject to the accelerated pay plan.
(c)	Employees who participate in the accelerated pay plan may not receive an additional performance increase pursuant to G.S. 126-7.
(d)	To the extent that sufficient funds are available in the amount of $750,000 in the 1990-91 Salary Increase Fund, the Director of the Budget shall transfer those funds to the Salary Adjustment Fund to be used for the Accelerated Pay Plan for Lowest State Employees.

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

Requested by:   Representatives B. Ethridge and Redwine
––-USE OF LAPSED SALARIES
Sec. 35.  (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:   Representatives B. Ethridge and Redwine
––-BUXTON WOODS PURCHASE FUNDS
Sec. 36.  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:   Representatives B. Ethridge and Redwine
––-WASTE STREAM ANALYSIS
Sec. 37.  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:   Representative Beard
––-WILDLIFE COMMISSION FUNDS
Sec. 38.  (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 $315,297 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:   Representatives B. Ethridge and Redwine
––-LIABILITY INSURANCE FOR HEALTH CARE EMPLOYEES
Sec. 39.  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:   Representatives B. Ethridge and Redwine
––-EPIDEMIOLOGY LINE ITEM TRANSFERS
Sec. 40.  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:   Representatives B. Ethridge and Redwine
––-STATEWIDE MEDICAL EXAMINER FUNDS
Sec. 41.  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:   Representatives B. Ethridge and Redwine
––-NON-MEDICAID REIMBURSEMENT
Sec. 42.  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: Representatives Redwine and B. Ethridge
––-REDUCE INFANT MORTALITY
Sec. 43.  (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 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 birth weight and infant mortality in the county.  The Departments shall report their findings to the Joint Legislative Commission on Governmental Operations on March 15, 1991.

Requested by:   Representative Diamont
––-NURSE MIDWIVES FOR UNDERSERVED COUNTIES
Sec. 43.1.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, $400,000 for the 1990-91 fiscal year shall be used to fund four teams of certified nurse midwives in critically underserved counties throughout the State.

Requested by:   Representatives B. Ethridge and Redwine
––-LAPSED SALARIES FOR FEDERAL MATCHING FUNDS
Sec. 44.  Effective for the 1990-91 fiscal year only, the Department of Environment, Health, and Natural Resources may, with the approval of the Secretary of the Department and the Director of the Budget, use funds from departmental lapsed salaries where necessary to match federal dollars for water resources development projects.

Requested by:   Representatives B. Ethridge, Redwine, DeVane, and Isenhower
––-OFFICE OF WASTE REDUCTION FUNDS
Sec. 45.  The Department of Environment, Health, and Natural Resources may transfer  up to $165,000 of the funds appropriated for the 1990-91 fiscal year for research and education grants for the Pollution Prevention Pays Program to the Office of Waste Reduction to establish four positions, which positions shall provide technical assistance to local governments and industries for waste reduction. 

Requested by:   Representatives B. Ethridge and Redwine
––-EHNR PERMITTING FUNDS
Sec. 46.  The Department of Environment, Health, and Natural Resources may use the sum of $447,240 in available funds, including lapsed salaries and other sources, for the 1990-91 fiscal year as follows:
(1)	The sum of $54,730 for one position and support costs for hazardous waste management facility permitting by the Environmental Management Division;
(2)	The sum of $50,796 for one position and support costs for hazardous waste facility assessment by the Environmental Management Division; and
(3)	The sum of $341,714 for six positions and support costs for the permitting of low-level radioactive and hazardous waste facilities by the Division of Solid Waste Management.

Requested by:   Representatives B. Ethridge and Redwine
––-DEPARTMENTAL USE OF FEES
Sec. 47.  (a) If either Senate Bill 1583, 1989 Regular Session, or House Bill 2353, 1989 Regular Session, is ratified, then there is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources for the 1990-91 fiscal year the sum of $70,000 for permitting, education, and compliance activities, including establishing and supporting two positions in the Division of Coastal Management; provided, however, if the revenues raised from Senate Bill 1583, 1989 Regular Session, or House Bill 2353, 1989 Regular Session, as ratified, are less than $70,000, then the appropriation is hereby reduced accordingly.
(b)	If either Senate Bill 1536, 1989 Regular Session, or House Bill 2266, 1989 Regular Session, is ratified, then there is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources for the 1990-91 fiscal year the sum of $80,000 for education, erosion control plan approval, and compliance activities in the Sedimentation Control Program, including establishing and supporting two positions in the Division of Land Resources; provided, however, if the revenues raised from Senate Bill 1536, 1989 Regular Session, or House Bill 2266, 1989 Regular Session, as ratified, are less than $80,000, then the appropriation is hereby reduced accordingly.
(c)	If either Senate Bill 1535, 1989 Regular Session, or House Bill 2264, 1989 Regular Session, is ratified, then there is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources for the 1990-91 fiscal year the sum of $20,000 for permitting, education, and compliance activities in the Dam Safety Program, including establishing and supporting one half-time position in the Division of Land Resources; provided, however, if the revenues raised from Senate Bill 1535, 1989 Regular Session, or House Bill 2264, 1989 Regular Session, as ratified, are less than $20,000, then the appropriation is hereby reduced accordingly.
(d)	If either Senate Bill 1534, 1989 Regular Session, or House Bill 2265, 1989 Regular Session, is ratified, then there is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources for the 1990-91 fiscal year the sum of $40,000 for permitting, education, and compliance activities in the Mining Program, including establishing and supporting one position and one half-time position in the Division of Land Resources; provided, however, if the revenues raised from Senate Bill 1534, 1989 Regular Session, or House Bill 2265, 1989 Regular Session, as ratified, are less than $40,000, then the appropriation is hereby reduced accordingly.
(e)  If either Senate Bill 1552, 1989 Regular Session, or House Bill 2331, 1898 Regular Session, is ratified, then there is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources for the 1990-91 fiscal year the sum of $24,000 for support costs in the Nuclear Emergency Planning and Response Program in the Division of Radiation Protection; provided, however, if the revenues raised from either Senate Bill 1552, 1989 Regular Session, or House Bill 2331, 1989 Regular Session, as ratified, are less than $24,000, then the appropriation is hereby reduced accordingly.
(f) If either Senate Bill 1559, 1989 Regular Session, or House Bill 2341, 1989 Regular Session, is ratified, then there is appropriated from the General Fund to the Department of Environment, Health, and Natural Resources for the 1990-91 fiscal year the sum of $488,400 to implement the restaurant and lodging fee collection program and to establish a computerized inventory of all restaurants and lodging facilities, including establishing and supporting four positions for the collection program, for the inventory program, or for both programs; and to increase Environmental Health Aid to Counties in the Division of Environmental Health; provided, however, if the revenues raised from Senate Bill 1559, 1989 Regular Session, or House Bill 2341, 1989 Regular Session, as ratified, are less than $488,400, then the appropriation is hereby reduced accordingly.

Requested by:  Representative Michaux
––-SICKLE CELL FUNDS/NOT SUBJECT TO BUDGET FLEXIBILITY
Sec. 47.1.  The budget flexibility authorized in Section 7 of this act does not apply to funds appropriated to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, for the 1990-91 fiscal year for sickle cell center contracts.

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

Requested by:   Representatives B. Ethridge and Redwine
––-ECONOMIC DEVELOPMENT PUBLICATIONS
Sec. 48.  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:   Representatives B. Ethridge and Redwine
––-NC MANUFACTURING DIRECTORY PROCEEDS
Sec. 49.  (a) The Department of Economic and Community Development may expend for industrial promotional advertising any amount collected from the sales of the North Carolina Manufacturing Directory above the sum of $155,000 already budgeted for the 1990-91 fiscal year.
(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:   Representative G. Wilson
––-WORKER TRAINING TRUST FUND
Sec. 50.  (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 unemployed and the working poor 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)	Beginning October 1, 1990, each of the departments receiving funds pursuant to subsection (c) of this section shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(e)  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. 
(f)  Subsection (e) of this section shall become effective October 1, 1990.

Requested by:   Representatives B. Ethridge and Redwine
––-RURAL ECONOMIC DEVELOPMENT CENTER
Sec. 51.  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 seven hundred twenty-five thousand dollars ($1,725,000) 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:   Representative DeVane
––-CELEBRATION FOUNDATION, INC.
Sec. 52.  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:   Representatives B. Ethridge and Redwine
––-LIMIT FOR RURAL ECONOMIC DEVELOPMENT CENTER REDUCTIONS
Sec. 54.  Notwithstanding the budget flexibility authorized in Section 7 of this act, reductions in the Department of Economic and Community Development for the Rural Economic Development Center, Inc., for the 1990-91 fiscal year shall equal no more than two and six hundredths percent (2.06%) of the budget of the Rural Economic Development Center, Inc.

Requested by:   Representative Diamont
––-TRAVEL AND TOURISM FUNDS
Sec. 55.  Keep North Carolina Beautiful, Inc., shall receive no State appropriations from any State agency for the 1990-91 fiscal year other than the funds appropriated to the Department of Economic and Community Development, Division of Travel and Tourism, for Keep North Carolina Beautiful, Inc.

PART XV.––-DEPARTMENT OF LABOR

Requested by:   Representatives B. Ethridge and Redwine 
––-LIMIT FOR MIGRANT HOUSING INSPECTION PROGRAM REDUCTIONS
Sec. 56.  Notwithstanding the budget flexibility authorized in Section 7 of this act, no reductions for the 1990-91 fiscal year may be taken in the Department of Labor for the Migrant Housing Inspection Program.

PART XVI.––-DEPARTMENT OF HUMAN RESOURCES

Requested by:   Representative Gardner
––-MEDICAID PROGRAM FUNDS/ADMINISTRATIVE ACTIVITIES
Sec. 57.  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:   Representative Gardner
––-MEDICAID SERVICES COVERAGE CHANGE
Sec. 58.  (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)	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:   Representative Gardner
––-INFANT MORTALITY REDUCTION
Sec. 59.  (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:   Representative Gardner
––-REVISED MEDICAID COVERAGE FOR PREGNANT WOMEN AND CHILDREN
Sec. 60.  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; and
		(7)	Effective October 1, 1990, children under the age of seven with family incomes equal to or less than the federal poverty guidelines as revised July 1,1990 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:   Representative Gardner
––-WILLIE M. REPORTING CHANGE
Sec. 61.  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:   Representative Gardner
––-EASTERN REGIONAL DETOXIFICATION FUNDS CHANGE
Sec. 62.  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:   Representative Gardner
––-CHRONICALLY MENTALLY ILL FUNDS
Sec. 63.  Funds to provide expanded community-based services to adults with severe and persistent mental illness are to be allocated to the Department of Human Resources' regions on a per capita basis.  Within each region, ninety percent (90%) of the funds shall be distributed to the area mental health programs on a per capita basis and ten percent (10%) to area mental health programs for special needs as determined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.  The Division may reallocate any unexpended funds within the specified region.

Requested by:   Representative Gardner
––-ADAP TRANSPORTATION REIMBURSEMENT
Sec. 64.  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:   Representative Gardner
––-SPECIALIZED RESIDENTIAL CENTERS' BED CONVERSIONS
Sec. 65.  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:   Representative Gardner
––-DAY CARE RATES
Sec. 66.  (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:   Representative Gardner
––-COMMUNITY ACTION PROGRAM FUNDS
Sec. 67.  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."

Requested by:   Representatives Gardner and Stam
––-ABORTION FUNDING
Sec. 68.  (a)	Section 93 of Chapter 479 of the 1985 Session Laws, as amended by Section 75 of Chapter 738 of the 1987 Session Laws and Section 72 of Chapter 500 of the 1989 Session Laws, is repealed.  Funds in the amount of $100,000  appropriated for the 1990-91 fiscal year to the Division of Social Services, Department of Human Resources to reimburse medical providers, including licensed physicians, licensed hospitals, and other facilities for those services provided under G.S. 14-45.1 shall be expended only as provided by this section.  State funds shall be limited to reimbursing providers for services provided within the first 135 days of pregnancy.  No State funds in excess of $100,000, whether from tax revenue, gift, bequest, grant, or any other sources, may be expended for the performance of abortions during the 1990-91 fiscal year.
(b) Eligibility for the State Abortion Fund.  It is the policy of North Carolina that the State Abortion Fund shall not be available for abortion on demand, but shall be limited in accordance with this section.  Applicants for services under this section shall be residents of North Carolina.  The fund shall be administered by the Division of Social Services in accordance with financial eligibility criteria to be established by the Social Service Commission and shall cover only:
(1)	Those pregnancies that are the result of rape or incest; or
(2)	Those pregnancies in which the woman is mentally retarded as defined in G.S. 122C-3; or
(3)	Those pregnancies in which, in the opinion of two physicians, at least one of whom has no financial interest in the performance of the abortion, the woman's life is endangered or her health, exclusive of mental or psychological health, is gravely impaired by the pregnancy.
		The cost of obtaining the opinion of both doctors is a reimbursable expense from the fund in accordance with the rules of the Social Services Commission.

Requested by:   Representative Gardner
––-USE OF STATE FUNDS AT MCLEOD PROGRAM
Sec. 69.  The Blue Ridge Center for Mental Health, Developmental Disabilities, and Substance Abuse Services shall ensure that State funds appropriated for the operation of the McLeod Center Residential Drug Program are expended only after other program receipts are expended and that all remaining unexpended State funds revert to the General Fund.

Requested by:   Representative Gardner
––-DHR PROGRAMS FUNDS
Sec. 70.  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)	Mental Health Accounting System; and
(2)	Day Care Abuse/Neglect Investigators.

Requested by:   Representative Gardner
––-DOMICILIARY RATE INCREASE
Sec. 71.   Section 81 of Chapter 500 of the 1989 Session Laws, as rewritten by Section 131 of Chapter 752 of the 1989 Session Laws, reads as rewritten:
"Sec. 81.  Effective January 1, 1990, the maximum monthly rate for ambulatory residents in domiciliary care facilities shall be $724.00 and the maximum monthly rate for semi-ambulatory residents shall be $760.00.  Effective January 1, 1991, the maximum monthly rates for ambulatory residents shall be increased to $756.00 and for semi-ambulatory residents $793.00."

Requested by:   Representative Wiser
––-REST HOME AIDE TRAINING
Sec. 72.  The Legislative Research Commission Study Committee on Care Provided by Rest Homes, Intermediate Care Facilities, and Skilled Nursing Homes; and Necessity for Certificate of Need; and Continuing Care Issues shall consider the entire issue of requirements for rest home aide training and State reimbursements to rest homes in its study and shall make recommendations on this issue as part of its report to the North Carolina Study Commission on Aging and to the Legislative Research Commission for transmittal to the 1991 General Assembly.  The Social Services Commission shall consider the recommendations made by the Study Committee.

PART XVII.––-COLLEGES AND UNIVERSITIES

Requested by:   Representatives J. Crawford and Tart
––-AID TO PRIVATE COLLEGES CLARIFICATION
Sec. 73.  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-four and ninety-four hundredths percent (94.94%) 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), up to the level of ninety-four and ninety-four hundredths percent (94.94%) of the maximum allocation allowed in 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:   Representative Jones
––-UNC EMPLOYEES PAYROLL DEDUCTIONS FOR UNC CHARITIES AND ATHLETICS
Sec. 74.  G.S. 143-3.3(a) reads as rewritten:
"(a)	All transfers and assignments made of any claim upon the State of North Carolina or any of its departments, bureaus or commissions or upon any State institution or of any part or share thereof or interest therein, whether absolute or conditional and whatever may be the consideration therefor and all powers of attorney, orders or other authorities for receiving payment of any such claim or any part or share thereof shall be absolutely null and void unless such claim has been duly audited and allowed and the amount due thereon fixed and a warrant for the payment thereof has been issued; and no warrant shall be issued to any assignee of any claim or any part or share thereof or interest therein: Provided that this section shall not apply to assignments made in favor of hospitals, building and loan associations, prepaid legal services, uniform rental firms to allow employees of the Department of Transportation to rent uniforms that include day-glo orange shirts or vests as required by federal and State law, and medical, hospital, disability and life insurance companies: Provided further, that any employee of the State or of any of its institutions, departments, bureaus, agencies or commissions, who is a member of any credit union organized pursuant to Chapter 54 of the North Carolina General Statutes having a membership at least one half of whom are employed by the State or its institutions, departments, bureaus, agencies or commissions, may authorize, in writing, the periodic deduction from his salary of wages as such employee of a designated lump sum, which shall be paid to such credit unions when said salaries or wages are payable, for deposit to such accounts, purchase of such shares or payment of such obligations as the employee and the credit union may agree: Provided further, that any employee of the State or of any of its institutions, departments, bureaus, agencies or commissions, or any of its community colleges, who is a member of a domiciled State employees' association with a membership of not less than 5,000 members, the majority of whom are State employees, may authorize in writing the periodic deduction from his salary or wages a designated sum to be paid to the employees' association. This plan of payroll deductions for State employees and other association members shall become null and void at such time as the employee association engages in collective bargaining. Except as otherwise provided, nothing in this last proviso shall apply to local boards of education, county or municipal governments or any local governmental units. Provided further, that subject to the rules and regulations adopted by the State Controller, any employee of the State or of any of its institutions, departments, bureaus, agencies or commissions may authorize in writing the withholding from his salary or wages an amount to satisfy his pledge to the State Employees Combined Campaign. Provided further, that subject to any rules and regulations adopted by the State Controller, any employee of a local board of education or community college may authorize in writing the withholding from his salary or wages a periodic deduction of a designated sum to be paid to any organization which qualifies for recognition of exemption by the Internal Revenue Service as a charitable organization as defined in Section 501(c)(3) of the Internal Revenue Code which has first been approved by his local board of education or community college board.  Provided further, that subject to any rules and regulations adopted by the State Controller, any employee of a constituent institution of The University of North Carolina which processes its own payroll, may authorize in writing the withholding from his salary or wages a periodic deduction of a designated sum to be paid to any organization which qualifies for recognition of exemption by the Internal Revenue Service as a charitable organization as defined in Section 501(c)(3) of the Internal Revenue Code and which exists to support athletic or charitable programs at the constituent institution where the employee is employed; Provided further that such organization must be approved by the President of The University of North Carolina as existing to support such athletic or charitable programs; Provided, further that such withholding is allowed only at those eligible constituent institutions that have authorized withholding plans under this proviso.  If a withholding plan results in additional costs to a campus, these costs shall be paid by those charitable organizations receiving contributions under the withholding plan."

Requested by:  Representative J. Crawford
––-PLAN FOR NURSE MIDWIFERY EDUCATION PROGRAMS
Sec. 75.  The Board of Governors of The University of North Carolina shall plan for the development of nurse midwifery education programs at those institutions with appropriate supporting academic programs.  The Board of Governors shall work with the Area Health Education Centers in planning for the development of clinical sites for the nurse midwifery education programs and shall report to the General Assembly by January 1991 on the cost required to implement the nurse midwifery programs in the 1991-92 academic year.

Requested by:   Representative Hardaway
––-RURAL DEVELOPMENT PROGRAMS
Sec. 76.  (a)	The General Assembly finds that local capacity to plan and manage development efforts in rural areas has traditionally been impaired due to the lack of fiscal resources to attract and maintain the full-time, professional expertise required.  Budget limitations and the resulting dearth of positions for planning and development specialists in rural areas have created the false impression that there is no demand for specially trained professionals to address these important rural needs.  Consequently, few universities offer a curriculum tailored to the development needs of rural communities.  This persistent shortage of trained planning and development personnel tends to exacerbate the already serious disadvantages rural areas face in trying to compete with the faster growing, more prosperous urban areas.  The large number of relatively small units of government in rural areas with their attendant budget and staff limitations have resulted in a fragmentation of development efforts.
Where expertise, technical support, and adequate compensation are in short supply, the creation of a county-level planning and development position complete with an appropriately trained specialist can provide the focus, initiative, and direction necessary to help overcome programming deficiencies and problems of organization and coordination.  By strengthening and broadening local and regional institutional capacity, rural areas will be in a better position to solve their problems and capture development opportunities.
(b)	The Board of Governors of The University of North Carolina shall review the need for a two-year graduate degree program in rural economic planning and development, which may include a broad range of courses in relevant fields of study such as agriculture, rural sociology, economics, public administration, and regional development.
The Board of Governors may appoint a special ad hoc committee to advise the Board in planning the rural economic planning and development program.  Membership of such a committee should include University of North Carolina System faculty and administrators, representatives of local governments, and experts in rural economic development.
(c)	The North Carolina Rural Economic Development Center, Inc., shall study the development of (i) a program to provide rural economic development internships and (ii) a matching grant program to enable distressed counties to fund development personnel positions, and (iii) an economic development scholarship loan program.  Any plans for those programs shall be developed as State-funded programs in accordance with the proposals in House Bill 2253.
(d)	All studies and plans to be developed in this section shall be submitted to the General Assembly by February 1, 1991.

Requested by:   Representative Rhyne
––-HIGHER EDUCATION OPPORTUNITY STUDY
Sec. 77.  (a)	There is established the Higher Education Opportunity Study Commission.  The Commission shall be composed of 19 members, as follows:
(1)	The Superintendent of Public Instruction, or his designee;
(2)	The Chairman of the State Board of Education, or his designee;
(3)	The President of the Community College System, or his designee;
(4)	The President of The University of North Carolina, or his designee;
(5)	The Chairman of the Association of Independent Colleges and Universities, or his designee;
(6)	Five members appointed by the Governor;
(7)	Five members appointed by the President of the Senate;
(8)	Five members appointed by the Speaker of the House of Representatives.
(b)	The President of the Senate shall designate one of his appointees as cochair and the Speaker of the House of Representatives shall designate one of his appointees as cochair.
(c)	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.  All initial appointments shall be made within one calendar month from the effective date of this act.
(d)	The Commission shall study the issue of providing tuition and fees grants for higher education to North Carolina students of proven academic ability who lack the necessary financial resources otherwise to attend a public four year institution of higher education.  The Commission shall report the results of this examination, including any legislative and and appropriations recommendations to the 1991 Session of the 1991 General Assembly by April 1, 1991, at which point the Commission will terminate.
(e) The Commission's study shall shall include:
(1)	An analysis of Louisiana's, and other states', initiatives in providing financial opportunity for higher education to their students of proven academic ability;
(2)	An analysis of the costs and future savings involved in providing such opportunity for North Carolina students;
(3)	A determination of what specific residence criteria, other than those currently being used by The University of North Carolina, if any, would need to be employed;
(4)	A determination of what academic standards eligible students would need to prove they have met, including high school course requirements, and standardized test scores;
(5)	A determination of what financial needs tests the students and their families must meet in order to qualify;
(6)	A determination of whether to allow a percentage deviation from the set standards for a certain number of students receiving financial help under this program;
(7)	A determination of what, if any, additional criteria students attending constitutent institutions of higher education under this program must continue to meet to continue to receive financial aid under this program;
(8)	 A determination of what entity should administer this program, whether the Board of Governors of The University of North Carolina, the State Education Assistance Authority, or other entity; and
(9)	Any additional determination or examination the Higher Education Opportunity Study Commission considers necessary to carry out its mandate.
(f)  The University of North Carolina and the Department of Public Instruction shall cooperate with the Higher Education Opportunity Study Commission as it carries out the mandate established in this act.
(g) The Commission may meet at any time on the joint call of the chairs.  The Commission, with the approval of the Legislative Services Commission, may meet in the Legislative Building or the Legislative Office Building.
(h) Members of the Commission who are legislators shall receive subsistence and travel expenses at the rates set forth in G.S. 120-3.1.  Members of the Commission who are officials or employees of the State shall receive travel allowances at the rate set forth in G.S. 138-6.  Other members of the Commission shall be paid per diem and allowances at the rates set forth in G.S. 138-5.
(i) 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 Administration 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 upon the direction of the Legislative Services Commission.  The expenses relating to clerical employees shall be borne by the Commission.
(j) Of the funds appropriated to the General Assembly for the 1990-91 fiscal year, the sum of $35,000 shall be allocated to the Higher Education Opportunity Study Commission for its work.

Requested by:   Representative Jones
––-ECU MRI FUNDS
Sec. 78.   Section 92 of Chapter 752 of the 1989 Session Laws reads as rewritten: 
"Sec. 92. (a)	Effective July 1, 1989 funds appropriated to the Board of Governors of The University of North Carolina for the East Carolina University School of Medicine for Medicare education shall be allocated as follows:
(1)	That portion of the Medicare reimbursement that can be identified as having been generated through the effort and at the expense of the School's Medical Faculty Practice Plan shall be transferred to the appropriate Medical Faculty Practice Plan account within the School; and
(2)	The remainder shall be transferred to a special nonreverting account within the School.
Funds deposited in the account pursuant to subdivision (2)	of this section shall be spent for nonrecurring items of equipment and facilities that are required to maintain the School of Medicine's teaching facilities within Pitt County Memorial Hospital and the Brody Medical Sciences Building.
(b)	All revenue subsequently received by the East Carolina University School of Medicine Medical Faculty Practice Plan from patients or their health insurance companies for treatment received in the Radiation Therapy Facility shall be retained by the School's Medical Faculty Practice Plan and used to defray current operating expenses and for future support and enhancement of the facility.
(b1)	All funds subsequently received by the East Carolina University School of Medicine from Pitt County Memorial Hospital for the lease of the Magnetic Resonance Imaging (MRI) building and equipment shall be retained by the School of Medicine in a nonreverting account and expended to defray current operating expenses and for future support and enhancement of the MRI facility.
(c)	All the receipts in subsections (a), (b), and (b1) shall appear in the General Fund Budget Code (16066) at East Carolina University.
(d)	This section shall expire June 30, 1991."

PART XVIII.––-COMMUNITY COLLEGES

Requested by:   Representative J. Crawford
––-RICHMOND COMMUNITY COLLEGE/CHILDBIRTH CLASSES
Sec. 79.  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:   Representative J. Crawford
––-STATE BOARD OF COMMUNITY COLLEGES GUIDELINES
Sec. 80.  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 reduced or 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 and permanent part-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 is not obligated to make budget reduction allocations on a pro rata basis and may specify various programs for reduction.
The State Board shall require each college to submit a plan detailing how its 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:   Representative J. Crawford
––-COMMUNITY COLLEGE TUITION INCREASE
Sec. 81.  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:   Representative J. Crawford
––-" TECH PREP”IMPLEMENTATION
Sec. 82.  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.

PART XIX.––-PUBLIC SCHOOLS

Requested by:   Representative J. Crawford
––-DIFFERENTIATED PAY FUNDS ALLOCATION
Sec. 83. (a) G.S. 115C-238.4 reads as rewritten:
"§ 115C-238.4.  Differentiated pay.
(a)	Local school administrative units may include, but are not required to include, a differentiated pay plan for certified instructional staff, certified instructional support staff, and certified administrative staff as a part of their local school improvement plans.  Units electing to include differentiated pay plans in their school improvement plans shall base their differentiated pay plans on:
(1)	The Career Development Pilot Program, G.S. 115C-363 et seq.;
(2)	The Lead Teacher Pilot Program, G.S. 115C-363.28 et seq.;
(3)	A locally designed school-based performance program, subject to limitations and guidelines adopted by the State Board of Education;
(4)	A differentiated pay plan that the State Board of Education finds has been successfully implemented in another state; or
(5)	A locally designed plan including any combination or modification of the foregoing plans.
(b)	Support among affected staff members is essential to successful implementation of a differentiated pay plan; therefore, a local board of education that decides that a differentiated pay plan should be included in its local school improvement plan shall present a proposed differentiated pay plan to affected staff members for their review and vote.  The vote shall be by secret ballot.  The local board of education shall include the proposed differentiated pay plan in its local school improvement plan only if the proposed plan has the approval of a majority of the affected paid certificated instructional and instructional support staff and a majority of the affected certificated administrators.
Every three years after a differentiated pay plan receives such approval, the local board of education shall present a proposed plan to continue, discontinue, or modify that differentiated pay plan to affected staff members for their review and vote.  The vote shall be by secret ballot.  The local board of education shall include the proposed plan in its local school improvement plan only if the proposed plan has the approval of a majority of the affected paid certificated instructional and instructional support staff and a majority of the affected certificated administrators.
(c)	Local school administrative units electing to participate in a differentiated pay plan shall receive State funds according to the terms of the plan but not to exceed:
(1)	1990-91: two percent (2%) of teacher and administrator salaries, and the employer's contributions for social security and retirement;
(2)	1991-92: three percent (3%) of teacher and administrator salaries, and the employer's contributions for social security and retirement;
(3)	1992-93: four percent (4%) of teacher and administrator salaries, and the employer's contributions for social security and retirement; 
(4)	1993-94: five and one-half percent (5 1/2%) of teacher and administrator salaries, and the employer's contributions for social security and retirement; and
(5)	1994-95 and thereafter: seven percent (7%) of teacher and administrator salaries, and the employer's contributions for social security and retirement.
Any differentiated pay plan developed in accordance with this section shall be implemented within State and local funds available for differentiated pay.
(d)	Attainment of the equivalent of Career Status I shall be rewarded through a new salary schedule that provides a salary differential when a certified educator successfully completes his probationary period.
(e)	Any additional compensation received by an employee as a result of the unit's participation in the Program shall be paid as a bonus or supplement to the employee's regular salary.  If an employee in a participating unit does not receive additional compensation, such failure to receive additional compensation shall not be construed as a demotion, as that term is used in G.S. 115C-325.
Payments of bonuses or supplements shall be paid no more frequently than once every calendar quarter: Provided, however, prior to the 1994-95 school year, payments in the career development pilot units may be made on a monthly basis."
(b)	Funds in the amount of $19,703,746 are appropriated for the 1990-91 fiscal year to the Department of Public Education in Section 3 of this act to implement the differentiated pay plans under the School Improvement and Accountability Act of 1989 for the 1990-91 school year.  It is the intent of the General Assembly to appropriate $19,732,300 for the 1991-92 fiscal year to complete the implementation of the differentiated pay plans for the 1990-91 school year.
The State Board of Education shall adopt rules for allocating funds for differentiated pay so as to implement the differentiated pay plans within funds available.

Requested by:   Representative J. Crawford
––-CAREER LADDER PROGRAM TRANSITION
Sec. 84.  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 1993-94 fiscal year and for each year thereafter, the career development pilot units shall receive seven percent (7%) of teacher and administrator salaries and of the employer's contributions for social security and retirement, so long as they participate in differentiated pay plans in accordance with G.S. 115C-238.4; they shall receive no additional State funding as career development pilot units.
For fiscal years 1990-91 through 1993-94, the provisions of G.S. 115C-363.28 regarding flexible funding continue to apply to the lead teacher pilot units.
(c)	The local school improvement plan for each career development pilot program shall include a schedule of modifications to the differentiated pay program.  This schedule shall result in an incremental reduction or increase, as appropriate, in the amount of funds allocated for differentiated pay so that, for the 1993-94 fiscal year and subsequent fiscal years, the cost of the differentiated pay plan equals (i) seven percent (7%) of teacher and administrator salaries and of the employer's contributions for social security and retirement and (ii) the amount of local funds available for differentiated pay.
For the 1990-91 fiscal year, the total amount appropriated for the career development pilot units is $4,693,368 less than it was for the 1989-90 fiscal year.  It is the intent of the General Assembly to phase out the amount appropriated for the career development pilot units by reducing it by $4,693,368 each year.
The State Board of Education shall require the pilot units to modify their differentiated pay programs so that the schedules of incremental reductions or increases result in these reductions.
(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.  For the 1989-90 fiscal year, this modification shall require no more funds than allocated to the particular project by the State Board of Education from funds appropriated to the State Board of Education in Chapter 500 of the 1989 Session Laws, the Current Operations Appropriations Act of 1989.  For the 1990-91 fiscal year, the merged unit shall receive (i) the amount of funds that was previously allocated to the particular pilot project, reduced by the State Board pursuant to subsection (b) of this section, and (ii) the amount of funds it is entitled to receive pursuant to G.S. 115C-238.4(c)(1), for the portion of the merged unit that did not participate in the pilot project.
(g)	No provision of this section shall be construed to allow a local school administrative unit to pay any teacher, in salary and State-funded bonus or supplement, less than it paid that teacher on a monthly basis during the prior school year, so long as the teacher qualifies for a bonus or supplement under the local differentiated pay plan."

Requested by:   Representatives Tart and J. Crawford
––-BASIC EDUCATION PROGRAM FUNDS
Sec. 85.  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 $49,998,109 in 1990-91.

BASIC EDUCATION PROGRAM
Basic Education Plan:
	1989-90	1990-91
1.	Additional Teachers	$ 46,735,714	 $	39,986,192
2.	Vocational Education
  Teachers	1,039,116		   -       
3.	In-School Suspension	-   		   -       
4.	Instructional Support	15,477,126		10,011,917
5.	Instructional/Lab
  Clerical Assistants	-   		   -       
6.	Athletic Trainer Supplement	15,000		   -       
7.	Assistant Principals -
  Extension of Term	-   		   -       
8.	Asst/Associate
  Superintendents	-   		   -       
9.	Clerical Assistants	6,010,484		   -       
10.	Supervisors	-   		   -      	            	             	           
TOTAL BASIC
  EDUCATION PLAN	$ 69,277,440	$	49,998,109
Of these funds, the sum of $12,925,543 for the 1990-91 fiscal year shall be used to reduce class size in grades 10-12.
With regard to the remainder of the funds for additional teachers, local boards of education may elect to vary from the State laws pertaining to the purposes for which State funds for the public schools may be used so as to use these funds to hire teachers to reduce class size in science, mathematics, and language arts classes; local boards of education shall report any such uses of the funds to the Department of Public Education within 10 days of the decision to use these funds for these purposes."

Requested by:   Representatives J. Crawford and Tart
––-COMPLETION OF BASIC EDUCATION PROGRAM
Sec. 86. (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 26 members: the Superintendent of Public Instruction; the chairman of the State Board of Education; one member of the Senate, one member of the House of Representatives, one school superintendent, one classroom teacher, and four members at large, appointed by the Governor; five 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 five 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 report on its activities to the Joint Legislative Education Oversight Commission, which is established in Section 100 of this act, prior to February 15, 1991.  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 per diem, subsistence, and travel allowances in accordance with G.S. 138-5, G.S. 138-6, or G.S. 120-3.1, as appropriate.
(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. 87.  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:   Representatives Tart and J. Crawford
––-SMALL SCHOOL PROGRAM ALLOTMENTS
Sec. 88.  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:   Representatives Tart and J. Crawford
––-LEAVE ACCUMULATION/PUBLIC SCHOOL EMPLOYEES
Sec. 89.  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. 90.  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:   Representatives Tart and J. Crawford
––-PROSPECTIVE TEACHER SCHOLARSHIP LOAN PROGRAM/EXPANDED TO COVER ADDITIONAL CERTIFIED EMPLOYEES
Sec. 91.  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:   Representative J. Crawford
––-STUDY OF NONCERTIFIED EMPLOYEES' SALARIES
Sec. 92.  The State Board of Education and the Superintendent of Public Instruction shall submit a joint report to the 1991 General Assembly on the disposition of the two percent (2%) salary reserve funds for noncertified public school employees established by Section 38(c) of Chapter 752 of the 1989 Session Laws.  The report shall address:
(1)	Continuing discrepancies between the actual current salaries of noncertified public school employees and the salaries of State employees;
(2)	Discrepancies between the actual salaries of noncertified employees and the salary levels recommended for the employees in studies conducted by the State Board of Education during the past 10 years, as adjusted for inflation;
(3)	Salaries and numbers of noncertified employees at or below the poverty level, as established by the federal government; and
(4)	A long-term, comprehensive plan to upgrade the salaries of noncertified public school employees so as to be consistent with the salaries of comparable State employees, consistent with recommendations contained in studies authorized and funded by the State Board of Education, and to increase the salaries of public school employees above the designated poverty level.
This plan shall make recommendation regarding groups in need of salary increases consistent with the above criteria and should recommend a multiyear plan with a maximum of six years to implement these increases, providing complete cost information.

Requested by:   Representative Bowen
––-SAMPSON SCHOOL FUNDS/DEADLINE EXTENDED
Sec. 93.  Funds in the amount of $2,000,000 awarded from the Critical School Facility Needs Fund by the Commission on School Facility Needs to the Sampson County Board of Education and the Sampson County Commissioners to construct school facilities as approved by the Commission on School Facility Needs shall remain available to the Sampson County Board of Education and the Sampson County Commissioners until December 1, 1991.

Requested by:   Representatives Tart and J. Crawford
––-SCHOOL PSYCHOLOGIST SALARY RECLASSIFICATION
Sec. 94.  Of the funds appropriated to the Department of Public Education for the 1990-91 fiscal year for aid to local school administrative units, the State Board of Education shall use $800,000 for a salary reclassification for school psychologists.  The starting salary for school psychologists shall be Step 5, corresponding to 5 years of experience, on the salary schedule for certified personnel of the public schools who are classified as "G”teachers.  Certified psychologists who were employed in the public schools prior to the 1990-91 fiscal year shall be placed on the salary schedule at an appropriate step based on their years of experience.

Requested by:   Representative J. Crawford
––-NATIONAL CONFERENCE ON GOVERNORS' SCHOOLS
Sec. 95.  Of the funds appropriated to the Department of Public Education for the 1990-91 fiscal year for aid to local school administrative units, the State Board of Education may allocate $20,000 to provide the support to conduct the Fourth National Conference on Governors' Schools.

Requested by:   Representatives J. Crawford and Tart
––-PUBLIC SCHOOL TEACHERS/LIABILITY PROTECTION
Sec. 96.  Of the funds appropriated to the Department of Public Education for the 1990-91 fiscal year, an amount equal to five dollars ($5.00) for each teacher paid from the General Fund shall be allocated by the State Board of Education to each local school administrative unit to provide comprehensive general liability protection, including coverage for errors and omissions, for teachers employed by the local school administrative unit for the 1990-91 school year.

Requested by:   Representatives J. Crawford and Tart
––-NORTH CAROLINA GEOGRAPHIC ALLIANCE NETWORK FUNDS
Sec. 97.  Of the funds appropriated to the Department of Public Education for the 1990-91 fiscal year for aid to local school administrative units, the State Board of Education may use up to $50,000 to fund the North Carolina Geographic Alliance Network Program, which is headquartered at East Carolina University.  The funds shall be used to:
(1)	Increase communication and cooperation between the professional geographic community and the network of Regional Education Centers,
(2)	Increase the number of in-service workshops conducted by professional geographers for the Regional Education Centers and local education agencies,
(3)	Increase the membership of professional geographers in the North Carolina Council for Social Studies,
(4)	Increase the number of professional geographers doing sessions at the annual meetings of the North Carolina Council for Social Studies,
(5)	Increase advisory interaction of professional geographers with the North Carolina Board of Education with regard to geography in the curriculum,
(6)	Increase involvement of public school teachers with the North Carolina Geographic Society.

Requested by:   Representative Jeralds
––-CLASS SIZE WAIVERS/TEACHER POSITIONS
Sec. 98.  The Department of Public Instruction shall monitor and provide a report to the General Assembly by May 1, 1991, and annually thereafter showing the school units that have been granted class size waivers pursuant to G.S. 115C-238.3(d), have reported class size exceptions, and have converted State-funded teacher positions to other positions, dollars, or other expenditures.

Requested by:  Representative Rhyne
––-CITIES-IN-SCHOOLS FUNDS
Sec. 99.  Of the funds appropriated to the Department of Public Education for the 1990-91 fiscal year for aid to local school administrative units, the State Board of Education shall allocate the sum of $83,000 to fund the Cities-in-Schools Dropout Prevention programs in North Carolina, which provide remediation, interagency coordination of services, and general counseling for at-risk middle grades and high school students.  These funds shall be matched on a dollar-for-dollar basis with a grant already received for these programs.

Requested by:   Representative Diamont
––-JOINT LEGISLATIVE EDUCATION OVERSIGHT COMMITTEE
Sec. 100.  Chapter 120 of the General Statutes is amended by adding a new Article to read:
                          “ARTICLE 12H.
"Joint Legislative Education Oversight Committee.
"§ 120-70.80.  Creation and membership of Joint Legislative Education Committee.
The Joint Legislative Education Committee is established.  The Committee consists of 16 members as follows:
(1)	Eight members of the Senate appointed by the President Pro Tempore of the Senate, at least two of whom are members of the minority party; and
(2)	Eight members of the House of Representatives appointed by the Speaker of the House of Representatives, at least three of whom are members of the minority party.
Terms on the Committee are for two years and begin on the convening of the General Assembly in each odd-numbered year, except the terms of the initial members, which begin on appointment and end on the day of the convening of the 1991 General Assembly.  Members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee.
A member continues to serve until his successor is appointed.  A vacancy shall be filled within 30 days by the officer who made the original appointment.
"§ 120-70.81.  Purpose and powers of Committee.
(a)	The Joint Legislative  Education Oversight Committee shall examine, on a continuing basis, the several educational institutions in North Carolina, in order to make ongoing recommendations to the General Assembly on ways to improve public education from kindergarten through higher education.  In this examination, the Committee shall:
(1)	Study the budgets, programs, and policies of the Department of Public Instruction, the State Board of Education, the Department of Community Colleges, the Board of Governors of The University of North Carolina, and the constituent institutions of The University of North Carolina to determine ways in which the General Assembly may encourage the improvement of all education provided to North Carolinians and may aid in the development of more integrated methods of institutional accountability;
(2)	Examine, in particular, the Basic Education Plan and the School Improvement and Accountability Act of 1989, to determine whether changes need to be built into the plans, whether implementation schedules need to be restructured, and how to manage the ongoing development of the policies underlying these legislative plans, including a determination of whether there is a need for the legislature to develop ongoing funding patterns for these plans;
(3)	Study other states' educational initiatives in public schools, community colleges, and public universities, in order to provide an ongoing commentary to the General Assembly on these initiatives and to make recommendations for implementing similar initiatives in North Carolina; and
(4)	Study any other educational matters that the Committee considers necessary to fulfill its mandate.
(b)	The Committee may make interim reports to the General Assembly on matters for which it may report to a regular session of the General Assembly.  A report to the General Assembly may contain any legislation needed to implement a recommendation of the Committee.
"§ 120-70.82.  Organization of Committee.
(a)	The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Joint Legislative Education Committee.  The Committee shall meet at least once a quarter and may meet at other times upon the joint call of the cochairs.
(b)	A quorum of the Committee is nine members.  No action may be taken except by a majority vote at a meeting at which a quorum is present.  While in the discharge of its official duties, the Committee has the powers of a joint committee under G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4.
(c)	Members of the Committee receive subsistence and travel expenses as provided in G.S. 120-3.1.  The Committee may contract for consultants or hire employees in accordance with G.S. 120-32.02.  The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist the Committee in its work.  Upon the direction of the Legislative Services Commission, the Supervisors of Clerks of the Senate and of the House of Representatives shall assign clerical staff to the Committee.  The expenses for clerical employees shall be borne by the Committee."

PART XX.––-DEPARTMENT OF CORRECTION

Requested by:   Representatives Huffman and Justus
––-LIMIT USE OF OPERATIONAL FUNDS
Sec. 101.  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:   Representative Barnes
––-RAISE PER DIEM REIMBURSEMENT (H2292)
Sec. 102.  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:   Representative Barnes
––-SOUTHERN APPALACHIA MAINSTREAM FUNDS (H2291)
Sec. 103.  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:   Representative Barnes
––-PRIVATE ALCOHOL AND DRUG ABUSE DETENTION CENTER (H2291)
Sec. 104.  The Department of Correction shall develop a proposal for a pilot program for contracting with the private sector for a privately operated, for-profit or not for-profit detention center or 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.

Requested by:   Representative Justus
––-CONTINUE CORRECTIONS CENTRALIZATION STUDY
Sec. 105. Section 120 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 120.  The House Appropriations Committees on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety shall study the desirability of adopting a more centralized approach to corrections in this State.  The primary purpose of this study shall be a comparison of the cost of maintaining the present 89 correctional facilities across the State and the cost of building and maintaining a more regionalized system consisting of substantially fewer facilities.  The study shall include:
(1)	An examination of the existing correctional facilities, the anticipated lifespan of those facilities, and the projected cost of renovating them to meet acceptable standards;
(2)	An estimate of the cost of constructing and maintaining new, regionalized facilities;
(3)	An estimate of the reduction in personnel costs that would result from a more regionalized correctional system; and
(4)	A comparison of this State's correctional system with the correctional systems of other states with comparable prison populations, including any steps those states have made to centralize their correctional systems.
The Committees may consult with the Office of State Construction, the Office of State Budget and Management, and the Office of the State Auditor in conducting their study.  The Committees may request funds from the Legislative Services Commission, if necessary, to hire outside consultants to assist in this study.
The balance of funds previously approved for this study for the 1989-90 fiscal year by the Legislative Services Commission may be used to complete the study.
The Committees shall submit their report to the 1991 General Assembly."

Requested by:   Representatives Huffman and Justus
––-FUNDS FOR EARLY OPERATIONAL COSTS
Sec. 106.  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 fund early operational costs for additional facilities.

Requested by:   Representatives Huffman, Justus, and Barnes
––-ROAD CREW PERFORMANCE AUDIT
Sec. 107.  The State Auditor shall conduct a performance audit of inmate road crews performing duties contracted for by the Department of Transportation.  The audit shall include an examination of work performance, hours worked, and costs.  The State Auditor shall report his findings by March 1, 1991, to the Chairmen of the Senate and House Appropriations Committees, the Chairmen of the House Appropriations Committees on Justice and Public Safety, the Chairmen of the Senate Appropriations Committee on Justice and Public Safety, and the Joint Legislative Commission on Governmental Operations.

Requested by:   Representatives Colton, Huffman, and Justus
––-AIDS EDUCATION PROGRAMS
Sec. 108.  Community Health Centers may offer educational programs approved by the AIDS Control Branch, Department of Environment, Health, and Natural Resources regarding AIDS and the prevention of AIDS to prisoners incarcerated in the State prison system as supplemental programs to those offered by the Department of Correction.

Requested by:   Representative Barnes
––-CRIMINAL JUSTICE FACILITY FUND (H2289)
Sec. 109. (a) There is created in the Office of State Budget and Management the Criminal Justice Facility Fund to provide State matching grant funds on a dollar-for-dollar basis for units of local government for construction or renovation of jails and work release centers.  Units of local government may apply to the Office for a grant under this section.  The application shall be in a form established by the Office.  The Office shall:
(1)	Develop application and grant criteria which include consideration of the resources available to the applicant, and the need of the applicant for State funds;
(2)	Provide all applicants with the criteria and appropriate application forms, technical assistance, if requested, and a proposed written agreement;
(3)	Review all applications;
(4)	Select grantees and award grants;
(5)	Award no more than $500,000 for any unit of local government;
(6)	Take into consideration the utilization of existing buildings suitable for renovation where appropriate;
(7)	Take into consideration the timeliness with which the applicant proposes to complete and occupy the unit;
(8)	Take into consideration the appropriateness and cost effectiveness of the proposal; and
(9)	Take into consideration the plan with which the applicant intends to coordinate the unit with other available facilities.
When considering the items listed in subdivisions (6) through (9), the Office shall determine the appropriate weight to be given each item.
(b)	If funds are appropriated to the Office of State Budget and Management for the 1990-91 fiscal year for funding the Criminal Justice Facility Fund established by subsection (a) of this section, the Office of State Budget and Management may use no more than one percent (1%) of the funds appropriated for costs of administering the Fund.

PART XXI.––-JUDICIAL DEPARTMENT

Requested by:   Representatives Huffman and Justus
––-RESERVE FOR RESENTENCING HEARINGS IN CAPITAL CASES
Sec. 110. (a) There is created in the Judicial Department a nonreverting 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:   Representatives Huffman and Justus
––-EXTEND CERTAIN SPECIAL SUPERIOR COURT JUDGE TERMS
Sec. 111. (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:   Representatives Huffman and Justus
––-INCREASED JUDICIAL DEPARTMENT OPERATING EXPENSE REQUIREMENTS
Sec. 112.  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.

Requested by:   Representative Holt
––-COMPREHENSIVE CHILD SUPPORT ENFORCEMENT STUDY
Sec. 113.  Section 28.2(b) of Chapter 795 of the 1989 Session Laws reads as rewritten:
	"(b)	The Department of Human Resources and the Administrative Office of the Courts shall jointly undertake a comprehensive study of child support enforcement services in North Carolina.  The report shall examine the current delivery of all child support services (IV-D and non-IV-D) by the Department of Human Resources, court offices, and county departments of social services.  Such a study shall evaluate the efficiency and effectiveness of the current system and make organizational, administrative, and procedural recommendations to optimize effective delivery of service to families.  The study shall examine the potential for the delivery of child support enforcement services which would provide equitable treatment of cases regardless of case type.
The study shall examine the organizational and fiscal relationship between State- and county-administered programs with the goal of eliminating or reducing duplication and fragmentation in local IV-D programs and court offices.  Proposals for system-wide reform of the program shall take into consideration the use of federal IV-D revenues to support program services.  The report shall include the recommendations of the respective agencies, accompanied by estimates of the costs and potential benefits of those recommendations and a plan for the implementation of these proposals.  The Department of Human Resources and the Administrative Office of the Courts may contract for outside consultation and assistance with the study with funds from existing resources in their budgets.  An interim report shall be submitted to the Legislative Services Office by May 15, 1990, and to the 1989 General Assembly, 1990 Regular Session.  A final report shall be submitted to the Legislative Services Office by March 15, 1991, and to the 1991 General Assembly."

Requested by:   Representatives Huffman and Justus
––-CREATE DURHAM COUNTY DEFENDER DISTRICT
Sec. 114.  (a) Effective July 1, 1990, a new Defender District 14, consisting of Durham County, is created and an office of public defender for Defender District 14 is established.
(b) Effective July 1, 1990, G.S. 7A-465(a) reads as rewritten:
	"(a) The following counties of the State are organized into the defender districts listed below and in each of those defender districts an office of public defender is established:
Defender
District	Counties

3A	Pitt
3B	Carteret
12	Cumberland
14	Durham
15B	Orange, Chatham
16A	Scotland, Hoke
16B	Robeson
18	Guilford
26	Mecklenburg
27A	Gaston
28	Buncombe
Provided that the effective date of the establishment of the office of public defender in Defender District 16B shall be the date that a superior court judge for Superior Court District 16B, other than the judge holding the judgeship for that district established by Chapter 509, Session Laws of 1987, takes office."
(c) Effective July 1, G.S 7A-466(c) reads as rewritten:
	"(c) The terms of the public defenders for Defender Districts 3A, 3B, and 16A shall begin on January 1, 1989.  The term of the public defender for defender district 16B shall begin upon the appointment of the initial public defender for that district. The term of the public defender for Defender District 14 shall begin on July 1, 1990."
(d) Notwithstanding any other provision of law to the contrary and for the initial term beginning July 1, 1990, only, the public defender shall be appointed, as soon as practical after the effective date of this act, by the Senior Resident Superior Court Judge for the set of districts, as defined in G.S. 7A-41.1, which consists of Durham County.
(e) Of the funds appropriated to the Indigent Persons' Attorney Fee Fund in the Judicial Department for fiscal year 1990-91, the Administrative Office of the Courts may use up to $759,292 for salaries, benefits, and related expenses for the office of public defender which is established for Defender District 14 effective July 1, 1990.

Requested by:   Representatives Huffman and Justus
––-CLARIFY WARRANTLESS ARREST AUTHORITY
Sec. 115.  Effective October 1, 1990, G.S. 15A-401(b) reads as rewritten:
"(b)	Arrest by Officer Without a Warrant. –
(1)	Offense in Presence of Officer. – An officer may arrest without a warrant any person who the officer has probable cause to believe has committed a criminal offense in the officer's presence.
(2)	Offense Out of Presence of Officer. – An officer may arrest without a warrant any person who the officer has probable cause to believe:
a.	Has committed a felony; or
b.	Has committed a misdemeanor, and:
1.	Will not be apprehended unless immediately arrested, or
2.	May cause physical injury to himself or others, or damage to property unless immediately arrested; or
c.	Has committed a misdemeanor under G.S. 14-72.1, 14-33(b)(2), or 14-134.3.
	."

Requested by:   Representatives Huffman and Nesbitt
––-RAPE VICTIM WITNESS COUNSELOR PROGRAM
Sec. 116.  Section 27.2 of Chapter 795 of the 1989 Session Laws reads as rewritten:
"Sec. 27.2.  From the funds specifically appropriated to the Judicial Department in the certified budget for the 1990-91 fiscal year, the Administrative Office of the Courts may transfer within its budget up to $25,000 to support the existing Rape Victim Witness Counselor Program. If these funds are not used for this purpose, the Administrative Office of the Courts may use them to fund the Custody Mediation Program in Buncombe County."

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

Requested by:   Representative Huffman
––-CONTINUE SUMMIT HOUSE FUNDING
Sec. 117.  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:   Representatives Huffman and Holt
––-COMMUNITIES PENALTIES PROGRAMS FUNDS
Sec. 118.  (a) Of the funds appropriated to the Department of Crime Control and Public Safety for the 15 existing local communities penalties programs, the funds allocated to each one of the existing programs for the 1990-91 fiscal year shall be at least equal to the amount allocated to that program for the 1989-90 fiscal year and may not be reduced below that amount, provided however that the Rockingham-Caswell Program shall be allocated funds in the amount of $40,900 and the Neuse River Community Penalties Program shall be allocated funds in the amount of $34,000.
(b) Funds appropriated to the Department of Crime Control and Public Safety for the expansion of the communities penalties programs shall be held in a reserve until October 1, 1990, to allow the completion of an operational audit of the communities penalties programs by the State Auditor.  The funds shall be released from the reserve on October 1, 1990. The State Auditor shall conduct an operational audit of the communities penalties programs that shall include an evaluation of the administration of the funding by the Department of Crime Control and Public Safety for communities penalties programs and the Department's management of those programs, an evaluation of each local communities penalties program, and an evaluation of the use made by each judicial district of the communities penalties program.  The State Auditor shall complete the operational audit and report his findings and recommendations to the Joint Legislative Commission on Governmental Operations, the House and Senate Appropriations Committees on Justice and Public Safety, and the Fiscal Research Division by October 1, 1990.

Requested by:   Representative Barnes
––-NO REORGANIZATION OF COMMUNITY PENALTIES PROGRAMS
Sec. 119.  The Department of Crime Control and Public Safety may not restructure or reorganize the community penalties programs.

Requested by:   Representative Huffman
––-ELIGIBILITY FOR VICTIMS COMPENSATION FUNDS
Sec. 120.  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."

Requested by:   Representative Huffman
––-LAW ENFORCEMENT DRIVING TRACK FUNDS
Sec. 121.  Section 27 of Chapter 754 reads as rewritten:
"Sec.  27.  Of the unexpended funds appropriated for the 1987-88 fiscal year to the Department of Crime Control and Public Safety in Section 5 of Chapter 795 of the 1987 Session Laws for the law enforcement precision driving track, $239,400 shall be used for the construction of a support building that houses a control tower, classroom facilities, and maintenance bays to be located at the driving track."

PART XXIII.––-DEPARTMENT OF JUSTICE

Requested by:  Representatives Huffman and Justus
––-STATE BUREAU OF INVESTIGATION SALARY ADJUSTMENT
Sec. 122. Section 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:   Representatives Justus and Huffman
––-MOBIL PLAN RESPONSE PROJECT
Sec. 123.  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.

Requested by:  Representative Anderson 
––-USE LAPSED SALARIES FOR SBI CONTRACTUAL POSITIONS
Sec. 124.  Notwithstanding G.S. 143-23(a1), the Department of Justice may use lapsed salary funds for the 1990-91 fiscal year to fund three contractual positions in the State Bureau of Investigation.  Those three positions are a forensic analysis lab position and two business communication specialist positions.  The Department of Justice is directed to request these positions as permanent positions for the 1991-92 fiscal year if those positions continue to be needed.

PART XXIV.––-DEPARTMENT OF TRANSPORTATION

Requested by:   Representatives McLaughlin and Woodard
––-CAPITAL IMPROVEMENT REVERSIONS
Sec. 125. (a)	Unexpended and unencumbered funds in the amount of $602,297, from the following capital improvement projects, less $120,615 to cover the listed deficits, shall revert to the Highway Fund.
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
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.

Requested by:   Representatives McLaughlin and Woodard
––-CASH FLOW HIGHWAY FUND APPROPRIATIONS
Sec. 126.  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:   Representatives McLaughlin and Woodard
––-CASH FLOW - HIGHWAY TRUST FUND APPROPRIATION
Sec. 127.  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:   Representative Diamont
––-MAINTENANCE OF STATE HIGHWAY BRIDGES
Sec. 129.  G.S. 136-97(b) reads as rewritten:
"(b)	The Department of Transportation, as part of maintaining the highways, bridges, and watercourses of this State, shall haul all debris removed from on, under, or around a bridge to an appropriate disposal site for solid waste, where the debris shall be disposed of in accordance with law.  This requirement may be waived when bridge closure has an adverse impact on public safety or creates a significant hardship to the traveling public by restricting all access or necessitates a significant detour.  In these instances, the minimum amount of debris which must be removed to restore service may be passed downstream."

Requested by:   Representative Michaux
––-CONFORM DOT MINORITY PARTICIPATION TO FEDERAL REGULATIONS
Sec. 130.  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 minority 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 minority 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 "minority”has the same meaning as in 49 C.F.R. § 23.5.
(d)	A five percent (5%) goal for participation by women businesses in road or bridge construction, preliminary engineering, alteration, or maintenance projects is established.  The Department of Transportation shall endeavor to award to women businesses at least five percent (5%) by value, of the contracts it lets for the design, preliminary engineering, 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, creed, national origin, sex, age, or handicapping condition, as defined in G.S. 168A-3, to all contractors and businesses otherwise qualified."

PART XXV.––-MISCELLANEOUS PROVISIONS

Requested by:   Representative Diamont
––-EXECUTIVE BUDGET ACT APPLIES
Sec. 131.  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:   Representative Diamont
––-COMMITTEE REPORT
Sec. 132.  The July 9, 1990, Report of the House Appropriations Committee which was distributed in the House of Representatives 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:   Representative Diamont
––-MOST TEXT APPLIES ONLY TO 1990-91
Sec. 133.  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:   Representative Diamont
––-1989-90 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 134.  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. 135.  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:   Representative Diamont
––-EFFECT OF HEADINGS
Sec. 136.  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:   Representative Diamont
––-SEVERABILITY CLAUSE
Sec. 137.  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:   Representative Diamont
––-EFFECTIVE DATE
Sec. 138.  Except as otherwise provided, this act shall become effective July 1, 1990.