GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	2 

SENATE BILL 1427
Appropriations Committee Substitute Adopted 7/13/90

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

A BILL TO BE ENTITLED
AN ACT TO MAKE APPROPRIATIONS TO PROVIDE CAPITAL IMPROVEMENTS FOR STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.
The General Assembly of North Carolina enacts:

Requested by:	Senator Royall
––-TITLE OF ACT
Section 1. This act shall be known as the "Capital Improvement 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.)

––-TITLE OF ACT 	1
PART I.––-GENERAL FUND APPROPRIATIONS 	3
––-CAPITAL IMPROVEMENTS/AMOUNTS DELAYED OR REVERTED 	3
––-ADDITIONAL APPROPRIATIONS FOR CAPITAL PROJECTS 	8
––-CONTINGENT APPROPRIATIONS FOR CAPITAL PROJECTS 	9
––-NONRECURRING OPERATING APPROPRIATIONS 	10
––-BUDGET STABILIZATION RESERVE 	10
––-NONRECURRING STATE AID APPROPRIATIONS 	11
––-APPROPRIATIONS OF FUNDS IN ACCORDANCE WITH HOUSE
	BILL 2377 	12
––-CURRENT OPERATIONS/RECURRING EXPENSES 	13
PART II.––-HIGHWAY FUND 	13
––-CAPITAL IMPROVEMENTS 	13
PART III.––-GENERAL PROVISIONS 	14
––-PROJECTS ON DELAYED STATUS 	14
––-RESTRICTION ON CAPITAL IMPROVEMENT EXPENDITURES 	14
––-USE OF REPAIRS AND RENOVATIONS RESERVE FUNDS 	15
––-INTANGIBLES TAX DISTRIBUTION 	15
PART IV.––-GENERAL GOVERNMENT 	15
––-CHARGES FOR OVERDRAFT IN STATE TREASURER'S DISBURSING ACCOUNT  15
––-INDIAN CULTURAL CENTER FUNDS 	16
––-OLD FORT BRANCH MUSEUM FUNDS 	16
––-PERFORMING ARTS CENTER FUNDS 	16
PART V.––-JUSTICE AND PUBLIC SAFETY 	16
––-DEPARTMENT OF CORRECTION EXPANSION FUNDS 	16
––-LAW ENFORCEMENT DRIVING TRACK FUNDS 	17
PART VI.––-EDUCATION 	17
––-VANCE-GRANVILLE COMMUNITY COLLEGE/FRANKLIN COUNTY SATELLITE FUNDS  17
––-SCHOOL SUPPLEMENTAL INSTRUCTIONAL MATERIAL/ DIFFERENTIATED PAY PLANS  17
––-PARENTAL INVOLVEMENT IN SCHOOLS/STUDY 	18
––-SCHOOL ADMINISTRATOR SALARY SCHEDULE 	18
––-EDUCATION GOVERNANCE STUDY 	19
PART VII.––-HUMAN RESOURCES 	19
––-PRESCRIPTION DRUG REIMBURSEMENT CHANGE 	19
––-DOMICILIARY RATE INCREASE 	20
––-VETERANS HOME STUDY 	20
––-HEAD START/ELDERLY AND NEEDY PROGRAM FUNDS 	20
PART VIII.––-NATURAL AND ECONOMIC RESOURCES 	20
––-NC AGRICULTURAL FINANCE AUTHORITY 	21
––-COMMUNITY DEVELOPMENT CORPORATIONS FUNDS 	21
––-SALE OF SOUTHPORT SMALL BOAT HARBOR 	21
––-WATER RESOURCES DEVELOPMENT PROJECTS 	22
––-LAKE RIM FUNDS 	23
––-LEGISLATIVE SERVICES COMMISSION TO PAY FOR CHAIRMAN OF SENATE NATURAL AND ECONOMIC RESOURCES APPROPRIATIONS COMMITTEE TO ATTEND HIGHWAY OVERSIGHT COMMITTEE MEETINGS  23
––-SPECIAL APPROPRIATIONS FOR HIGHWAYS REDUCTION FOR CAPITAL IMPROVEMENTS  23
––-D.O.T. CONTRACT RETAINAGE DEPOSITS 	24
PART IX.––-EMPLOYEE BENEFITS 	25
––-UNIVERSITY EMPLOYEES' OPTIONAL RETIREMENT PROGRAM 	25
PART X.––-MISCELLANEOUS PROVISIONS 	25
––-EXECUTIVE BUDGET ACT APPLIES 	25
––-COMMITTEE REPORT 	25
––-MOST TEXT APPLIES ONLY TO 1990-91 	25
––-1989-90 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY 	26
––-EFFECT OF HEADINGS 	26
––-SEVERABILITY CLAUSE 	26
––-EFFECTIVE DATE 	26

PART I.––-GENERAL FUND APPROPRIATIONS

––-CAPITAL IMPROVEMENTS/AMOUNTS DELAYED OR REVERTED
Sec. 2.  (a) The Governor, acting pursuant to Article III, Section 5(3), of the Constitution to effect the necessary economies in State expenditures to balance the budget for the 1989-91 fiscal biennium, has placed all or part of the funds appropriated by the General Assembly for the projects set out on the following chart on a "delayed”status or reverted them.
The appropriations of funds in the amounts set out in the chart in the column headed "Amount Delayed or Reverted”are hereby repealed.
Appropriations are made from the General Fund for the 1990-91 fiscal year for use by State departments, institutions, and agencies for capital improvement projects, to replace the amounts delayed or reverted by the Governor and repealed herein by the General Assembly, according to the column headed "1990-91 Appropriation”in the following schedule: 

	Amount Delayed	1990-91
Agency/Project	or Reverted	Appropriation

Department of Administration

(Total)	$ 27,502,480	$ 21,303,955

1.	Museum of Art - Landscaping	700,000	-     

2.	Education Building - Furnishings	907,980	-     

3.	New Steam Plant - Government
Complex	6,594,500	6,594,500

4.	Reserve for Asbestos Removal	750,000	-     

5.	New Revenue Building	18,000,000	14,159,455

6.	Veterans Cemetery Funds	400,000	400,000

7.	Indian Cultural Center - Planning	150,000	150,000

Department of Agriculture

(Total)	10,162,994	8,789,394

1.	Watercraft Museum	499,700	499,700

2.	Western North Carolina 
Agricultural Center - Land	350,000	350,000

3.	Mountain Research Station -
Building	140,000	-     

4.	Southeastern Farmers Market	1,500,000	1,500,000

5.	New Agronomics Lab	6,852,694	6,439,694

6.	Garden Center Building -
Charlotte	320,600	-     

7.	Piedmont Triad Market	500,000	-     

Board of Governors - University
of North Carolina

(Total)	63,451,300	46,354,257

1.	1987 University-wide Construction	2,855,678	2,855,678

2.	1987 Advance Planning	350,000	350,000

3.	1988 Major Renovations and Repairs	4,865,660	4,793,242

4.	1988 Utilities Repairs and
Improvements	1,692,000	1,598,657

5.	1988 Land Acquisition	689,920	689,920

6.	1988 University-wide Construction	5,352,932	5,062,150

7.	1988 Mitchell 4-H Camp - Repairs	214,000	214,000

8.	1988 UNC - Asheville -
Conference Center	2,200,000	2,200,000

9.	1988 North Carolina Arboretum	1,062,810	1,062,810

10.	N. C. State University -
a.	Engineering Graduate Center	6,000,000	3,000,000
b.	Centennial Center	2,000,000	1,000,000

11.	East Carolina University -
a.	Joyner Library Addition	6,000,000	2,000,000
b.	Center for Regional Advancement	1,000,000	500,000

12.	University of North Carolina at
Chapel Hill -
a.	School of Business	6,500,000	5,000,000
b.	Social Work Building	4,140,500	1,500,000

13.	UNC - Asheville -
a.	Conference Center	2,000,000	500,000
b.	Conference Center	2,000,000	500,000

14.	Fayetteville State University -
Health/Physical Educ. Building	8,677,800	8,677,800

15.	Appalachian State University -
a.	Student Activities Center	2,000,000	1,000,000
b.	Academic Support Building	500,000	500,000

16.	N. C. Arboretum	1,250,000	1,250,000

17.	Board of Governors - Land	1,000,000	1,000,000

18.	Area Health Education Centers -
Construction Grants	1,100,000	1,100,000

Department of Community Colleges

(Total)	6,000,000	-     

1.	Anson Community College/Stanly
Community College - Union Satellite	900,000	-     

2.	Cape Fear Community College -
Classroom	500,000	-     

3.	Craven Community College -
Student Activity Center	750,000	-     

4.	Fayetteville Technical Community
College - Center for Applied
Technology - Equipment	899,952	-     

5.	Isothermal Community College -
Fine Arts Center	320,000	-     

6.	Johnston Community College -
Renovate Library	90,000	-     

7.	Pitt Community College -
Vocational Building	28,577	-     

8.	Roanoke-Chowan Community College -
Technology/Small Business Center	368,645	-     

9.	Rockingham Community College -
Lab/Classroom Building	1,032,826	-     

10.	Wake Technical Community College -
Health Education Building	1,110,000	-     

Department of Correction

(Total)	1,955,600	1,955,600

1.	Reserve for Repairs - Statewide	347,800	347,800

2.	Wastewater and Water System
Improvements	133,400	133,400

3.	Plumbing Repairs at 51 Units	517,600	517,600

4.	Substance Abuse Facility
(Correctional Center for Women)	62,800	62,800

5.	DWI Treatment Facility (Goldsboro)	894,000	894,000

Department of Cultural Resources

(Total)	950,000	-     

1.	Ziegler House - Renovation	400,000	-     

2.	C. H. Brown State Historic Site -
Improvements	400,000	-     

3.	Spencer Shops - Round House
Renovations	150,000	-     

Department of Economic and
Community Development

(Total)	7,000,000	1,000,000

1.	Biotechnology Center -
Construction Grant	1,000,000	1,000,000

2.	State Ports Authority - Expansion,
Modernization, and Development	2,844,043	-     

3.	State Ports Authority Development
a.	Morehead City Port	2,130,263	-     
b.	Wilmington Port	1,025,694	-     

Department of Environment, Health,
and Natural Resources

(Total)	9,550,000	6,700,000

1.	State Park System - Repairs and
Renovations/Improvements	2,000,000	-     

2.	State Park System - Land
Purchases	400,000	-     

3.	Headquarters - Forest Resources
County Headquarters	900,000	450,000

4.	North Carolina Zoological Park -
North American Phase	6,250,000	6,250,000

Department of Justice

(Total)	18,508,000	-     

1.	State Bureau of Investigation
Complex	18,508,000	-     

NC Solid Waste Mgt Capital Projects
Financing Agency

(Total)	5,000,000	500,000

1.	Solid Waste Revolving Fund	5,000,000	500,000

Office of State Budget and Management

(Total)	52,736,698	43,660,094

1.	Clean Water and Sewer Program	11,000,000	10,500,000

2.	Emergency Prison Construction
Program	27,160,094	27,160,094

3.	Low-Level Radioactive Waste Site
Selection	6,000,000	6,000,000

4.	Satellite Jail/Work Release
Units	8,576,604	-     

GRAND TOTAL	$202,817,072	$130,263,300

(b) Except where expressly repealed or amended by this act, the provisions of law relating to the capital projects set out in subsection (a) of this section, 
(1)	Are not affected by language in subsection (a) repealing the amounts appropriated and appropriating new funds for the projects and
(2)	Apply to the funds appropriated in subsection (a).

––-ADDITIONAL APPROPRIATIONS FOR CAPITAL PROJECTS
Sec. 3.  Appropriations are made from the General Fund for use by the State departments, institutions, and agencies to provide for capital improvement projects according to the following schedule:

Agency/Project	1990-91

Department of Administration

1.	New Museum of Natural Science - Planning	$   90,000

Department of Agriculture

1.	Southeastern Farmers' Market -
  Wastewater Treatment Facility	140,000

Board of Governors - University of North Carolina

(Total)	1,353,000

1.	University of North Carolina at Chapel
Hill - Living and Learning Center for
Autistic Adults	1,078,000

2.	N. C. State University - Agriculture Programs -
Castle Hayne Horticultural Research Station -
Greenhouse and Support Facilities	275,000

Department of Crime Control and Public Safety

1.	Construction of Armories at Clinton
and Goldsboro
Total Requirements	5,409,300
Federal Matching	3,941,500
Local Matching	733,900
State Matching	733,900

Department of Cultural Resources

1.	Museum of the Albemarle - Continued Planning	75,000

Department of Economic and Community Development

(Total)	2,600,000

1.	State Ports Development - Long Range Planning	100,000

2.	National Institute of Statistical Sciences
(Research Triangle Park)	2,500,000

Department of Environment, Health, and
Natural Resources

(Total)	925,000

1.	Coastal Reserves - Buxton Woods -
Federal Matching	125,000

	 2.	Reserve for Water Resources -
Federal Matching	800,000

Department of Human Resources

1.	Murdoch Center - Renovate Parkview Cottage	1,400,000

Office of State Budget and Management

(Total)	57,643,822

1.	Reserve for Repairs and Renovations	5,543,822

2.	Clean Water Program - Federal Match	5,600,000

3.	Public School Construction Funds:
a.	ADM Fund Allocations	36,500,000
b.	Critical Needs Allocations	10,000,000

GRAND TOTAL 	$ 64,960,722

Requested by:   Senator Royall
––-CONTINGENT APPROPRIATIONS FOR CAPITAL PROJECTS
Sec. 4.  (a)	Appropriations are made from the General Fund for use by the State departments, institutions, and agencies to provide for capital improvement projects according to the following schedule:

Department of Justice

1. New State Bureau of Investigation Complex	$18,508,000

Department of Environment, Health, and
Natural Resources

1. North Carolina Zoological Park -
Completion of the North American Phase	4,953,000

2. Water Resources Development Projects
a. Carolina Beach Renourishment - Federal Match	800,000
b. Colington Bay Navigation	200,000

GRAND TOTAL - GENERAL FUND	24,461,000

(b) Subsection (a) of this section shall become effective only if the Director of the Budget certifies that adequate nonrecurring revenue is available to support these expenditures and that adequate revenue is otherwise available to meet budgeted expenditures.  The Director of the Budget may consult with the Advisory Budget Commission prior to making this certification.

––-NONRECURRING OPERATING APPROPRIATIONS
Sec.  5.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, 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 General Fund for these purposes for the 1990-91 fiscal year.  Amounts set out in brackets are reductions from General Fund appropriations for the 1990-91 fiscal year.

Current Operations - General Fund	 1990-91

State Controller's Office

1.	Continue Implementation of Statewide
Accounting System	2,000,000

Department of Community Colleges

1.	Equipment and Book Purchases	6,000,000

GRAND TOTAL	$8,000,000

Requested by:   Senator Royall
––-BUDGET STABILIZATION RESERVE
Sec. 6.  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 Economic Future Study Commission develop recommended rules governing the creation and maintenance of a permanent Reserve and that the 1991 General Assembly enact laws establishing the permanent Reserve.
It is also the intent of the General Assembly that the Reserve will be financed from General Fund revenues that would otherwise be expended and that the monies placed in the Reserve will be used to offset unanticipated reductions in funding availability resulting from changes in the economic outlook, federal tax changes, corporate financial actions, judicial decisions, federal spending mandates, and natural disasters.
The funds in the Reserve shall not be spent during the 1990-91 fiscal year without the prior approval of the General Assembly.

––-NONRECURRING STATE AID APPROPRIATIONS
Sec. 7.  Appropriations from the General Fund of the State to State departments, institutions, and agencies for aid to certain governmental and nongovernmental units as enumerated are made for the fiscal year ending June 30, 1991, according to the following schedule:

Project	1990-91

Department of Agriculture

1.	Grant-in-Aid to the North Carolina
Strawberry Association, Inc., for
strawberry marketing and research	$25,000

Department of Economic and
Community Development

(Total)	2,500,000

1.	Industrial Economic Development
Fund		1,500,000

2.	North Carolina Housing Trust Fund	1,000,000

Board of Governors - University of
North Carolina

1.	North Carolina State University-
Research Triangle World Trade
Center		50,000

Department of Human Resources

1.	HUD Group Homes - For start-up
and operational costs of 15 group homes
for the developmentally disabled and 2 group
homes and 2 apartment projects for the mentally
ill as approved in the 1989 Section 202
allocation by the U. S. Department of Housing
and Urban Development	1,525,978

Department of Environment, Health, and
Natural Resources

1.	United Cerebral Palsy Group Homes
and Developmental Centers	200,000

Office of State Budget and
Management

(Total)	3,505,000

1.	North Carolina Performing Arts
Center - Charlotte	2,100,000

2.	Grant-in-Aid - Autistic Foundation
of N.C. for development of camp and
conference center	300,000

3.	Water and Sewer Development -
Caswell County	500,000

4.	Economic Development -
Hyde County	100,000

5.	North Carolina Poverty Project,
Inc. - Grant-in-Aid	55,000

6.	Rural Economic Development Center, Inc. -
Grants to Community Development Corporations
incorporated under Chapter 55A of the General
Statutes		325,000

7.	The Pack Place Education, Arts and Service
Center (Asheville)	125,000

GRAND TOTAL	$7,805,978

––-APPROPRIATIONS OF FUNDS IN ACCORDANCE WITH HOUSE BILL 2377
Sec. 8.  Appropriations from the General Fund of the State for the fiscal year ending June 30, 1991, are made, in accordance with Chapter 813 of the 1989 Session Laws, House Bill 2377, according to the following schedule:

Local Tax Sharing Reserve
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

––-CURRENT OPERATIONS/RECURRING EXPENSES
Sec. 9.  Appropriations from the General Fund of the State for maintenance of State departments, institutions, and agencies, 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 General Fund for these purposes for the 1990-91 fiscal year.  Amounts set out in brackets are reductions from General Fund appropriations for the 1990-91 fiscal year.

General Fund	1990-91

Department of the Secretary of State	$   772,320

Department of State Treasurer	150,000

Department of Environment, Health, and 
Natural Resources	530,146

Department of Human Resources

1.	Black Mountain Center - Alzheimer's unit	735,814

2.	Division of Social Services	1,319,394

3.	Division of Blind Services	9,450

4.	Division of Maternal and Child Health	100,000

Total Department of Human Resources	2,164,658

Department of Revenue	1,252,678

Debt Service	75,000

GRAND TOTAL	$4,944,802

PART II.––-HIGHWAY FUND

––-CAPITAL IMPROVEMENTS
Sec. 10.  Appropriations are made from the Highway Fund for use of the Department of Transportation to provide for capital improvement projects according to the following schedule:

Agency/Project	1990-91

Division of Highways

1.	Salt Storage Facilities	$500,000

2.	Division of Highways Roof Replacements	226,500

3.	Land Acquisition and Sub-Maint.-Jonas Ridge	177,300

4.	Division Office Annex-Ahoskie	400,000

5.	Division Office Annex-Greenville	360,000

6.	Site Completion-Taylorsville	359,700

7.	Central Warehouse Expansion-Raleigh	226,225

Division of Motor Vehicles

1.	Reserve for Repairs to Parking Lots	97,000

2.	Reserve for Roof Replacements	94,300

3.	Land purchase and building design-Asheville	180,000

GRAND TOTAL	$2,621,025

PART III.––-GENERAL PROVISIONS

Requested by:   Senator Royall
––-PROJECTS ON DELAYED STATUS
Sec. 11.  Because adequate funds are not available for the 1990-91 fiscal year to meet all of the State's critical needs for capital projects and to appropriate funds for all projects that were placed on delayed status by the Governor, the General Assembly is unable to restore all of the funds for the projects or to meet other critical capital needs.  The General Assembly urges the Governor to give highest priority to funds for these projects when he prepares his proposed budget for the 1991-93 fiscal biennium.

Requested by:   Senator Royall
––-RESTRICTION ON CAPITAL IMPROVEMENT EXPENDITURES
Sec. 12.  Notwithstanding any other provision of law, capital improvement projects for which funds are appropriated in Sections 2, 3, and 4 of this act shall not be available for expenditure prior to January 1, 1991, and until the Director of the Budget has certified that nonrecurring revenue sufficient to support these expenditures has been realized or is anticipated to be realized prior to June 30, 1991.  Prior to certification of funds as required under this section, the Director of the Budget may seek the advice of the Advisory Budget Commission.
This section is not applicable to any projects (i) on which construction contracts have been awarded; (ii) where federal, local, or private funds are available to match State funds; (iii) where agents of the State have made commitments to provide waste disposal facilities; or (iv) where necessary repairs must be made to State facilities.

Requested by:   Senator Royall
––-USE OF REPAIRS AND RENOVATIONS RESERVE FUNDS
Sec. 13.  Notwithstanding G.S. 143-16.3, funds from the Repairs and Renovations Reserve may be used for repair and renovation of capital facilities for which the General Assembly considered but did not enact an appropriation of funds for the 1990-91 fiscal year.

Requested by:   Senator Royall
––-INTANGIBLES TAX DISTRIBUTION
Sec. 14.  Notwithstanding G.S. 105-213(a), as amended by Chapter 813 of the 1989 Session Laws, the distribution required to be made in the 1990-91 fiscal year by that subsection shall be made by September 15, 1990, instead of by August 30, 1990.

PART IV.––-GENERAL GOVERNMENT

Requested by:   Senator Royall
––-CHARGES FOR OVERDRAFT IN STATE TREASURER'S DISBURSING ACCOUNT
Sec. 15.  G.S. 143-3.2 reads as rewritten:
"§ 143-3.2. Issuance of warrants upon State Treasurer.
(a)	The State Controller shall have the exclusive responsibility for the issuance of all warrants for the payment of money upon the State Treasurer. All warrants upon the State Treasurer shall be signed by the State Controller, who before issuing them shall determine the legality of payment and the correctness of the accounts.
When the State Controller finds it expedient to do so because of a State agency's size and location, the State Controller may authorize a State agency to make expenditures through a disbursing account with the State Treasurer. The State Controller shall authorize the Judicial Department and the General Assembly to make expenditures through such disbursing accounts. All deposits in these disbursing accounts shall be by the State Controller's warrant. A copy of each voucher making withdrawals from these disbursing accounts and any supporting data required by the State Controller shall be forwarded to the Office of the State Controller monthly or as otherwise required by the State Controller.
A central payroll unit operating under the Office of the State Controller may make deposits and withdrawals directly to and from a disbursing account. The disbursing account shall constitute a revolving fund for servicing payrolls passed through the central payroll unit.
The State Controller may use a facsimile signature machine in affixing his signature to warrants.
(b)	The State Treasurer shall impose a fee of fifteen dollars ($15.00) for each check drawn against a disbursing account that causes the balance in the account to be in overdraft or while the account is in overdraft.  The fee shall be paid from non-State funds to the General Fund to the credit of the miscellaneous revenue account."

Requested by:   Senator Parnell
––-INDIAN CULTURAL CENTER FUNDS
Sec. 16.  (a) The State of North Carolina shall lease out for a period of 99 years at a monetary consideration of $1 per year all the real property it acquired for the Indian Cultural Center, but no part of Phase I of the project may be constructed either by the State or by or for the lessee until an environmental impact assessment is completed as to Phase I.
(b)	Of the funds appropriated to the Department of Administration for fiscal year 1990-91 in Section 2 of this act for the Indian Cultural Center, the sum of $100,000 shall be used for an environmental impact assessment and construction of the Indian Cultural Center and the sum of $50,000 may be used for administrative costs of the center.

Requested by:   Senator Swain
––-OLD FORT BRANCH MUSEUM FUNDS
Sec. 17.  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:   Senator Royall
––-PERFORMING ARTS CENTER FUNDS
Sec. 18.  Funds in the amount of $2,100,000 are appropriated in Section 7 of this act to the Office of State Budget and Management as a grant-in-aid for the Performing Arts Center in Charlotte.
It is the intent of the General Assembly to give highest priority to an appropriation of an additional $1,400,000 for the 1991-93 fiscal biennium for the Performing Arts Center to fulfill the State's commitment to this project.

PART V.––-JUSTICE AND PUBLIC SAFETY

Requested by:   Senator Royall
––-DEPARTMENT OF CORRECTION EXPANSION FUNDS
Sec. 19.  (a) Section 80 of The Current Operations Appropriations Act of 1990 is repealed.
(b)	The additional funds from the General Fund necessitated by the repeal of Section 80 of The Current Operations Appropriations Act of 1990 shall be funded from additional funds from the General Fund, to the extent that the Director of the Budget, after consultation with the Office of State Budget and Management and the Fiscal Research Division of the Legislative Services Office, finds that General Fund revenues for the 1990-91 fiscal year exceed the General Fund revenues estimated in the budget enacted by the General Assembly for the 1990-91 fiscal year.  If sufficient funds are not available from that source, there is created in the Office of State Management and Budget a negative General Fund Reserve for the 1990-91 fiscal year in an amount equal to the remaining amount necessary to fund those additional expenditures.  That reserve shall be funded by reductions in the General Fund in the discretion of the Director of the Budget.

Requested by:   Senator Marvin
––-LAW ENFORCEMENT DRIVING TRACK FUNDS
Sec. 20.  Section 27 of Chapter 754 of the 1989 Session Laws 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 VI.––-EDUCATION

Requested by:   Senator Speed
––-VANCE-GRANVILLE COMMUNITY COLLEGE/FRANKLIN COUNTY SATELLITE FUNDS
Sec. 21.  (a) The balance of $133,592.20 in the North Carolina Clean Water Revolving Loan and Grant Program-Administrative Account is hereby reverted to the General Fund.
(b) There is appropriated from the General Fund to the Department of Community Colleges the sum of $133,592 for the 1990-91 fiscal year for repairs and renovation at the Franklin County satellite of Vance-Granville Community College.

Requested by:   Senator Conder
––-SCHOOL SUPPLEMENTAL INSTRUCTIONAL MATERIAL/
DIFFERENTIATED PAY PLANS
Sec. 22.  (a) G.S. 115C-98(b) reads as rewritten:
"(b)	Local boards of education shall adopt written policies concerning the procedures to be followed in their local school administrative units for the selection and procurement of supplementary textbooks, library books, periodicals, audio-visual materials, and other supplementary instructional materials needed for instructional purposes in the public schools of their units.
Local boards of education shall have sole authority to select and procure supplementary instructional materials, whether or not the materials contain commercial advertising, to determine if the materials are related to and within the limits of the prescribed curriculum, and to determine when the materials may be presented to students during the school day.  Supplementary materials and contracts for supplementary materials are not subject to approval by the State Board of Education.
Supplementary books and other instructional materials shall neither displace nor be used to the exclusion of basic textbooks."
(b) G.S. 115C-47 is amended by adding a new subdivision to read:
"(33)	Local boards of education shall have sole authority to select and procure supplementary instructional materials, whether or not the materials contain commercial advertising, pursuant to the provisions of G.S. 115C-98(b)."
(c) G.S. 115C-238.4 is amended by adding a new subsection to read:
"( f)	If a local school administrative unit bases its differentiated pay plan on a locally designed school-based performance program, pursuant to subdivision (a)(3) of this section, the plan shall provide that following the attainment of the local school goals, the local board of education shall make a determination of which certified staff members contributed to the attainment of those goals.  Differentiated pay bonuses shall then be distributed to those designated employees.  The local board of education shall make the determination as designated in the local differentiated pay plan."

Requested by:   Senator Kaplan
––-PARENTAL INVOLVEMENT IN SCHOOLS/STUDY
Sec. 23.  The Education Study Commission, which was created in Part V of Chapter 802 of the 1989 Session Laws, shall study the concept of requiring parents to spend time at school with their children.  During the course of this study, the Education Study Commission shall consider the legislation proposed in the first edition of Senate Bill 1524 of the 1989 Session.

Requested by:   Senator Royall
––-SCHOOL ADMINISTRATOR SALARY SCHEDULE
Sec. 24.  (a) Section 38(a1) of Chapter 752 of the 1989 Session Laws is repealed.
(b) Section 38(a2) of Chapter 752 of the 1989 Session Laws reads as rewritten:
"(a2)	Superintendents, Assistant Superintendents, Associate Superintendents, Supervisors, Directors, Coordinators, Evaluators, Program Administrators, Principals, and Assistant Principals–1990-91.  The Director of the Budget may transfer from the salary increase reserve fund created in Section 3 of this act for fiscal year 1990-91 funds necessary to provide an average annual salary increase of six percent (6%), including funds for the employer's retirement and Social Security contributions, commencing July 1, 1990, for all superintendents, assistant superintendents, associate superintendents, supervisors, directors, coordinators, evaluators, program administrators, principals, and assistant principals whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than for the salary increase and necessary employer contributions provided by this subsection."

Requested by:  Senator Royall
––-EDUCATION GOVERNANCE STUDY
Sec. 25.  The Task Force on Excellence in Secondary Education of the Department of Public Instruction shall study the method of selecting education officials and the educational governance structure at the State level.  The Task Force shall report the results of its study and its recommendations to the General Assembly prior to January 15, 1991.

PART VII.––-HUMAN RESOURCES

Requested by:   Senator Royall
––-PRESCRIPTION DRUG REIMBURSEMENT CHANGE
Sec. 26.  (a) Section 70(a)(6), of Chapter 500 of the 1989 Session Laws, as rewritten by Section 139(a) of Chapter 752 of the 1989 Session Laws of the 1989 Session Laws, reads as rewritten:
"(6)	Drugs - Drug costs as allowed by federal regulations plus four dollars forty-five cents ($4.45) 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."
(b)	Effective upon the reduction of the estimated drug acquisition cost below the Average Wholesale Price, Section 70(a)(6) of Chapter 500 of the 1989 Session Laws, as rewritten by Section 139(a) of Chapter 752 of the 1989 Session Laws, and as further rewritten by subsection (a) of this section, reads as rewritten:
"(6)	Drugs - Drug costs as allowed by federal regulations plus five dollars ten cents ($5.10) 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."
(c) Section 139(b) of Chapter 752 of the 1989 Session Laws is repealed.
(d) Subsections (a), (b), and (c) of this section shall become effective only if the Department identifies funds available to it sufficient to implement the increases established pursuant to these subsections.

Requested by:   Senator Daniel
––-DOMICILIARY RATE INCREASE
Sec. 27.   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:   Senator Raynor
––-VETERANS HOME STUDY
Sec. 28.  The Legislative Research Commission's Committee on Care Provided by Rest Homes, Intermediate Care Facilities, and Skilled Nursing Homes, Necessity for Certificates of Need, and Continuing Care Issues, may study the need for a veterans home in North Carolina.  The Committee may consider Senate Bill 1379, introduced by Senator Raynor, in determining the nature, scope, and aspects of the study.

Requested by:   Senators Walker and Marvin
––-HEAD START/ELDERLY AND NEEDY PROGRAM FUNDS
Sec. 29.   (a) Of the funds appropriated in Section 7 of the Current Operations Appropriations Act of 1990 under the Social Services Block Grant for day care services, the sum of $200,000 shall be allocated to the Department of Human Resources, Division of Economic Opportunity, for the continuation of Head Start programs and services for children eligible for these programs and services, and for the continuation of the services to the elderly and needy funded in Section 47 of Chapter 754 of the 1989 Session Laws.
(b) There is appropriated from the General Fund to the Department of Human Resources, Division of Economic Opportunity, the sum of $50,000 for the 1990-91 fiscal year to continue funding for those Head Start programs and services and those services to the elderly and needy described in subsection (a) of this section.

PART VIII.––-NATURAL AND ECONOMIC RESOURCES

Requested by:   Senator Plyler
––-NC AGRICULTURAL FINANCE AUTHORITY
Sec. 30.  (a) Section 109 of Chapter 500 of the 1989 Session Laws is repealed, except that such repeal reenacts Chapter 122D of the General Statutes only as provided by subsection (b) of this section.
(b) Chapter 122D of the General Statutes is reenacted, with the exception of G.S. 122D-6(12), 122D-6(15), 122D-10, 122D-12, 122D-14, 122D-15, and 122D-17.
	(c) G.S. 120-123(47) is reenacted.
(d) The amendment made to G.S. 53-234(6)(d) by Section 109(f) of Chapter 500, Session Laws of 1989, is repealed.
(e) Of the funds that were in the Reserve for Farm Loans on June 30, 1990, a sum not to exceed $204,627 may be reallocated to the North Carolina Agricultural Finance Authority for the 1990-91 fiscal year for the administration of Chapter 122D of the General Statutes, notwithstanding any provision of law to the contrary.

Requested by:   Senator Hunt
––-COMMUNITY DEVELOPMENT CORPORATIONS FUNDS
Sec. 31. (a)	Of the funds appropriated to the Department of Economic and Community Development for the 1990-91 fiscal year for the Rural Economic Development Center, Inc., the sum of $325,000 shall be used for grants to be disbursed to community development corporations which are incorporated under Chapter 55A of the General Statutes and which currently serve minority and underdeveloped communities.
(b)	The Rural Economic Development Center, Inc., shall make a written report by May 1, 1991, to the General Assembly on the use of the funds appropriated under subsection (a) of this section.
(c)	No funds allocated under subsection (a) of this section shall be used for administrative expenses of the Rural Economic Development Center, Inc., and any interest earned on unexpended funds shall be used for grants pursuant to subsection (a) of this section.

Requested by:   Senator Soles
––-SALE OF SOUTHPORT SMALL BOAT HARBOR
Sec. 32.  (a)	The North Carolina State Ports Authority may convey to the City of Southport for monetary consideration a fee simple determinable interest only in the parcel of land, together with improvements, located in the City of Southport, Brunswick County, which is described in the deed from the City of Southport to the North Carolina State Ports Authority filed for registration May 29, 1964, and recorded in Deed Book 178, page 446, Brunswick County Registry, and other lands of the North Carolina State Ports Authority adjacent thereto, all of which are collectively known as the Southport Small Boat Harbor.  The fee simple determinable interest so conveyed shall continue so long as the City of Southport does not convey its interest in all or any part of this property.  Should the City of Southport convey its interest, the City's interest shall terminate by operation of law and automatically revert to the State.
(b)	The transfer authorized by subsection (a) of this section shall be evidenced by deeds or other instruments of conveyance as may be necessary to effectuate the transfer, executed by the State Ports Authority in accordance with the provisions of G.S. 143B-455.
(c)	The deeds or other instruments of conveyance of the Southport Small Boat Harbor shall include language which conveys the fee simple determinable interest described in subsection (a) of this section.

Requested by:   Senator Martin of Pitt
––-WATER RESOURCES DEVELOPMENT PROJECTS
Sec. 33.  (a)	Of the funds appropriated to the Department of Environment, Health, and Natural Resources for the 1990-91 fiscal year, the sum of $800,000 shall be used for water resources development projects.  The Department shall fund the following projects, whose estimated costs are as indicated:
(1)	Morehead City Harbor
		Maintenance Dredging	$  50,000
(2)	Beaufort Harbor
		Maintenance Dredging	80,000
(3)	Lower Creek (City of Lenoir)
		Flood Control	169,000
(4)	Aquatic Weed Control Projects	37,000
(5)	Great Coharie Creek (Sampson
		County) Flood Control	75,000
(6)	State/Local Water
		Development Projects	389,000
(7)	Corps of Engineers Feasibility
		Studies	as funds available.

(b)	Where the actual costs are different from the estimated costs under subsection (a) of this section, the Department may adjust the allocations among projects as needed.  If any projects listed in subsection (a) of this section are delayed and the budgeted State funds cannot be used during the 1990-91 fiscal year, or if the projects listed in subsection (a) are accomplished at a lower cost, the Department may use the resulting fund availability to fund:
(1)	Corps of Engineers project feasibility studies, or
(2)	Corps of Engineers projects whose schedules have advanced and require State matching funds in fiscal year 1990-91.
Funds not expended or encumbered for these purposes shall revert to the General Fund at the end of the 1991-92 fiscal year. 
(c)	Beginning October 1, 1990, the Department shall make quarterly reports on the use of these funds to the Joint Legislative Commission on Governmental Operations, the Director of the Fiscal Research Division, and the Office of State Budget and Management.  Each report shall include:
(1)	All projects listed in subsection (a) of this section;
(2)	The estimated cost of each project;
(3)	The date work on each project began or is expected to begin;
(4)	The date work on each project was completed or is expected to be completed; and
(5)	The actual cost of each project.
The quarterly reports shall also show those projects advanced in schedule, those projects delayed in schedule, and an estimate of the amount of funds expected to revert to the General Fund.

Requested by:   Senator Tally
––-LAKE RIM FUNDS
Sec. 34.  Section 38 of Chapter 754 of the 1989 Session Laws, as rewritten by Section 24 of The Current Operations Appropriations Act of 1990, 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."

Requested by:   Senator Basnight
––-LEGISLATIVE SERVICES COMMISSION TO PAY FOR CHAIRMAN OF SENATE NATURAL AND ECONOMIC RESOURCES APPROPRIATIONS COMMITTEE TO ATTEND HIGHWAY OVERSIGHT COMMITTEE MEETINGS
Sec. 35.  The Legislative Services Commission shall pay the costs of the attendance of the Chairman of the Senate Appropriations Committee on Natural and Economic Resources at all meetings of the Joint Legislative Highway Oversight Committee.  These subsistence and travel expenses shall be as provided in G.S. 120-3.1.

Requested by:   Senators Basnight and Martin of Pitt
––-SPECIAL APPROPRIATIONS FOR HIGHWAYS REDUCTION FOR CAPITAL IMPROVEMENTS
Sec. 36. (a)	The funds appropriated for the Special Appropriations for Highways in The Current Operations Appropriations Act are hereby reduced by $2,621,025 which shall be used for capital improvements as appropriated in this act.
(b)	Section 98 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 98.  Of the funds appropriated to the Department of Transportation for special appropriations for highways in Chapter 500 of the 1989 Session Laws, The Current Operations Appropriations Act of 1989, and this act, sixty-six million dollars ($66,000,000) for fiscal year 1989-90 and seven thousand five hundred twenty-four dollars ($7,524) for fiscal year 1990-91 may be used for:
(1)	Supplemental funding for highway construction, reconstruction, and rehabilitation projects for State and Federal Aid road systems;
(2)	Supplemental funding for the planning, design, and engineering of highways and acquisition of highway rights-of-way;
(3)	Matching funds for unanticipated federal-aid construction funds;
(4)	Payment for all or any portion of the interest or principal on bonds issued by the State for road and highway purposes; and
(5)	A means of maintaining a uniform seasonal pace of highway construction, including scheduled ferry replacement.
Construction funds shall be allocated in accordance with G.S. 136-17.2A.  The Department of Transportation shall report to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division in accordance with G.S. 120-70.51(a)(1)."

Requested by:   Senators Basnight and Plyler
––-D.O.T. CONTRACT RETAINAGE DEPOSITS
Sec. 37.  Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136-28.9.  Retainage - construction contracts.
Notwithstanding the provisions of G.S. 147-69.1, 147-77, 147-80, 147-86.10, and 147-86.11, or any other provision of the law, the Department of Transportation is authorized to enter into trust agreements with banks and contractors for the deposit of retainage and for the payment to contractors of income on these deposits, in connection with highway construction contracts, in trust accounts with banks in accordance with Department of Transportation regulations, including deposit insurance and collateral requirements.  The Department of Transportation may contract with those banks without trust departments in addition to those with trust departments.  Funds deposited in any trust account shall be invested only in bonds, securities, certificates of deposits, or other forms of investment authorized by G.S. 147-69.1 for the investment of State funds.  The trust agreement may also provide for interest to be paid on uninvested cash balances."

PART IX.––-EMPLOYEE BENEFITS

Requested by:   Senator Royall
––-UNIVERSITY EMPLOYEES' OPTIONAL RETIREMENT PROGRAM
Sec. 38.  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) thirty-eight and eighty-five hundredths percent (38.85%) - 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."

PART X.––-MISCELLANEOUS PROVISIONS

Requested by:   Senator Royall
––-EXECUTIVE BUDGET ACT APPLIES
Sec. 39.  The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

Requested by:   Senator Royall
––-COMMITTEE REPORT
Sec. 40.  The July 11, 1990, Report of the Senate Appropriations Committee which was distributed in the Senate and used to explain this act, shall indicate action by the General Assembly on this act and shall therefore be used to construe this act, as provided in G.S. 143-15 of the Executive Budget Act, and for such purposes shall be considered a part of this act.

Requested by:   Senator Royall
––-MOST TEXT APPLIES ONLY TO 1990-91
Sec. 41.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1990-91 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 1990-91 fiscal year.

Requested by:   Senator Royall
––-1989-90 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 42.  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, and The Current Operations Appropriations Act of 1990, as amended, remain in effect.
Sec. 43.  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, as amended, and The Current Operations Appropriations Act of 1990, as amended, that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes.

Requested by:   Senator Royall
––-EFFECT OF HEADINGS
Sec. 44.  The headings to the parts and sections of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act.

Requested by:   Senator Royall
––-SEVERABILITY CLAUSE
Sec. 45.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Requested by:   Senator Royall
––-EFFECTIVE DATE
Sec. 46.  Except as otherwise provided, this act shall become effective July 1, 1990.