GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 43*

Short Title:  Current Operations - Appropriations.	(Public)
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Sponsors: Senators Royall, Basnight, Martin of Guilford, Martin of Pitt, Marvin, Plyler, Ward, and Walker.
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Referred to:  Appropriations.
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January 23, 1989

A BILL TO BE ENTITLED
AN ACT TO MAKE APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
The General Assembly of North Carolina enacts:
Section 1.  The Appropriations made in this act are for 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.

Part I.––-CURRENT OPERATIONS/GENERAL FUND

Sec. 2.  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 biennium ending June 30, 1991, according to the following schedule:

Current Operations-General Fund	1989-90	 1990-91

General Assembly	$   17,236,893 $   20,487,849 

Judicial Department	181,437,244 183,669,638  

Department of the Governor
01.	Office of the Governor	4,520,811 4,544,345 
02.	Office of State Budget
and Management	3,442,661 3,402,942 

Lieutenant Governor's Office	562,854 564,124 

Department of Secretary of State	3,345,317 3,254,615 

Department of State Auditor	12,940,608 12,947,697 

Department of State Treasurer	4,035,438 4,041,240 

Department of Public Education
01.	Administration	53,765,011 52,271,232 
02.	State Aid	3,004,542,381 3,280,363,198 

Department of Justice	45,456,336 48,369,208 

Department of Administration
01.	Administration	47,206,193 47,429,100 
02.	State Controller	5,187,931 5,192,978 

Department of Agriculture	38,535,996 39,697,017 

Department of Labor	7,337,009 7,334,122 

Department of Insurance	12,313,876 12,346,572 

Department of Transportation
01.	Aeronautics	7,158,721 7,792,515 
02.	Aid to Railroads	1,216,666 216,666 

Total Department of
Transportation	8,375,387 8,009,181 

Department of Natural Resources and
Community Development	81,827,411 81,779,703 

Office of Administrative Hearings	1,972,220 1,975,809 

Administrative Rules Review Commission	258,469 251,545 

Department of Human Resources
01.	Alcoholic Rehabilitation Center - 
Black Mountain	3,195,745 3,217,781 
02.	Alcoholic Rehabilitation Center - 
Butner	3,016,347 3,029,084 
03.	Alcoholic Rehabilitation Center - 
Greenville	2,622,285 2,622,461 
04.	N.C. Special Care Center	4,492,325 4,583,853 
05.	Black Mountain Center	619,850 613,127 
06.	DHR - Administration and Support
Program	7,274,607 7,142,653 
07.	Division of Aging	4,809,406 4,810,488 
08.	Schools for the Deaf and Blind	22,169,581 22,192,919 
09.	Division of Health Services	83,486,271 86,204,421 
10.	Social Services	94,624,272 95,124,052 
11.	Medical Assistance	384,442,191 448,104,017 
12.	Social Services - State Aid to
Non-State Agencies	5,133,148 5,133,148 
13.	Division of Services for the
Blind	6,081,502 6,093,927 
14.	Division of Mental Health,
Mental Retardation and Substance
Abuse Services	162,192,477 162,656,135 
15.	Dorothea Dix Hospital	34,572,277 34,908,235 
16.	Broughton Hospital	30,086,511 30,285,894 
17.	Cherry Hospital	30,153,802 30,438,806 
18.	John Umstead Hospital	28,631,050 28,708,028 
19.	Western Carolina Center	3,491,587 3,619,043 
20.	O'Berry Center	4,819,496 4,927,705 
21.	Murdoch Center	15,439,860 13,345,992 
22.	Caswell Center	14,265,690 14,457,270 
23.	Division of Facility Services	30,500,087 32,256,721 
24.	Division of Vocational
Rehabilitation Services	22,715,531 22,716,953 
25.	Division of Youth Services	43,060,651 43,201,970 
26.	Reserve for Services for Older
Adults	6,000,000 8,000,000 
27.	State Aid, Local Programs
Inflationary Increases	2,333,278 5,374,256 

Total Department of
Human Resources	1,050,229,827 1,121,775,315 

Department of Correction

01.	Correction	340,110,686 343,198,073 
02.	Reserve for Correction	75,000,000 75,000,000 

Department of Commerce

01.	Commerce	31,325,001 31,275,456 
02.	Biotechnology Center	6,360,200 8,360,200 
03.	Microelectronics Center
a.  Microelectronics Center	16,815,360 16,153,548 
b.  N.C. Supercomputer Center	8,760,674 5,504,876 

Department of Revenue	48,246,995 47,632,976 

Department of Cultural Resources	37,916,730 38,182,330 

Department of Crime Control
and Public Safety	25,249,087 25,461,003 

University of North Carolina - Board
of Governors

01.	General Administration	18,661,711 18,729,676 
02.	University Operations - 
Lump Sum	5,661,534 5,661,534 
03.	Related Educational Programs	44,491,421 44,663,186 
04.	University of North Carolina
at Chapel Hill
a.  Academic Affairs	131,513,628 133,672,623 
b.  Division of Health
    Affairs	94,302,088 95,830,942 
c.  Area Health Education
    Centers	30,386,075 30,373,500 
05.	North Carolina State University
at Raleigh
a.  Academic Affairs	162,449,269 164,276,621 
b.  Agricultural Research
    Service	35,233, 748 35,123,381 
c.  Agricultural Extension
    Service	27,431,979 27,348,964 
06.	University of North Carolina at
Greensboro	51,580,243 51,944,811 
07.	University of North Carolina at
Charlotte	49,338,442 49,972,994 
08.	University of North Carolina at
Asheville	15,006,549 15,431,287 
09.	University of North Carolina at
Wilmington	28,931,879 29,035,937 
10.	East Carolina University
a.  Academic Affairs	67,532,422 67,991,454 
b.  Division of Health Affairs	47,601,938 48,713,413 
11.	North Carolina Agricultural and
Technical State University	33,922,465 34,571,701 
12.	Western Carolina University	33,404,839 34,169,604 
13.	Appalachian State University	50,841,830 50,925,543 
14.	Pembroke State University	13,961,449 14,048,265 
15.	Winston-Salem State University	15,483,965 15,566,048 
16.	Elizabeth City State
University	13,007,195 13,122,579 
17.	Fayetteville State University	15,895,836 16,081,858 
18.	North Carolina Central
University	25,797,251 25,909,056 
19.	North Carolina School of the
Arts	8,046,738 8,102,191 
20.	North Carolina Science and
Math High School	6,832,113 6,804,564 
21.	North Carolina Memorial
Hospital	34,734,222 35,412,940 

Total University of North
Carolina	1,062,050,829 1,073,484,672 

Department of Community Colleges
01.	Administration	10,754,877 10,775,544 
02.	State Aid	322,507,283 323,161,955 

State Board of Elections	375,445 402,909 

Contingency and Emergency	1,613,000 1,613,000 

Reserve for Salary Adjustments	4,000,000 4,000,000 

Reserve for Compensation Increase	25,240,835 100,963,340 

Reserve for Health Benefits	40,000,000 53,500,000 

Reserve for Compensation Increases,
State Aid, Local Programs	1,338,145 5,352,579 

Eliminate Vacant Positions	(10,400,000) (10,400,000) 

Debt Service	74,083,445 76,713,583 

GRAND TOTAL CURRENT OPERATIONS–
GENERAL FUND	$6,705,878,465 $7,172,037,098 

PART II.––-CURRENT OPERATIONS/HIGHWAY FUND

Sec. 3.  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 biennium ending June 30, 1991, according to the following schedule:

Current Operations-Highway Fund	1989-90	 1990-91

Department of Transportation
01.	Administration	$   27,547,098 $   28,276,990 
02.	Highways
a.	Administration and
Operations	32,490,377 32,527,710 

b.	State Construction
(01)	Primary Construction	    -       -   
(02)	Secondary
Construction	68,672,240 70,732,407 
(03)	Urban Construction	20,000,000 20,000,000 
(04)	Access and Public
Service Roads	2,000,000 2,000,000 
(05)	Special Appropriation
for Highways	66,000,000 66,000,000 
(06)	Spot Safety
Improvements	9,100,000 9,100,000 

c.	State Funds to Match Federal
Highway Aid
(01)	Construction	73,338,469 74,271,803 
(02)	Planning Survey and Highway
Planning Research	2,298,590 2,136,210 
d.	State Maintenance
(01)	Primary	77,903,523 77,903,523 
(02)	Secondary	137,924,055 137,924,055 
(03)	Urban	21,021,422 21,021,422 
(04)	Contract Resurfacing	100,567,150 100,567,150 
e.	Ferry Operations	15,656,188 16,027,640 
f.	State Aid to Municipalities	68,672,240 70,732,407 
g.	State Aid for Public
Transportation	2,756,250 2,894,063 
03.	Division of Motor Vehicles	71,341,648 70,708,106 
04.	Governor's Highway Safety Program	258,840 259,249 
05.	Reserve for Health Benefits	4,400,000 5,900,000 
06.	Reserve for Compensation
Increase	3,079,581 12,318,322 
07.	Salary Adjustments for Highway
Fund Employees	600,000 600,000 
08.	Reserve to Correct Occupational
Safety and Health Conditions	550,000 500,000 
09.	Expansion Reserve	5,947,657 1,783,955 
10.	Debt Service	38,491,163 37,392,600 

Appropriations for Other State Agencies
01.	Crime Control and Public
Safety	82,138,327 86,154,107 
02.	Other Agencies
a.	Department of Agriculture	2,371,675 2,470,577 
b.	Department of Revenue	1,494,890 1,495,746 
c.	Department of Human
Resources	344,820 344,988 
d.	Department of Correction	1,750,000 1,750,000 

Contingency and Emergency Fund	    100,000     100,000  

GRAND TOTAL CURRENT OPERATIONS–
HIGHWAY FUND	$  938,816,203 $  953,893,030 

PART III.––-SPECIAL PROVISIONS/HIGHWAY FUND CURRENT OPERATIONS

––-HIGHWAY FUND/ALLOCATIONS BY TRANSPORTATION CONTROLLER

Sec. 4.  The Controller of the Department of Transportation shall allocate sufficient funds to eliminate all overdrafts on State maintenance and construction at the beginning of each fiscal year from the various appropriations made to the Department of Transportation in Section 3 of this act, Titles:

02.b. - State Construction
02.c. - State Funds to Match Federal Highway Aid
02.d. - State Maintenance
02.e. - Ferry Operations

––-CASH FLOW/HIGHWAY FUND APPROPRIATIONS

Sec. 5.  The General Assembly authorizes and certifies anticipated revenues of the Highway Fund as follows:

For Fiscal Year 1991-92       $  981,100,000
For Fiscal Year 1992-93       $1,005,000,000

––-RESURFACED ROADS MAY BE WIDENED

Sec. 6.  Of the contract maintenance resurfacing program funds appropriated in Section 3 of this act to the Department of Transportation, an amount not to exceed ten percent (10%) of the Board of Transportation's allocation of these funds may be used for widening existing narrow pavements that are scheduled for resurfacing.

––-USE OF SALES TAX COLLECTED BY THE DIVISION OF MOTOR VEHICLES

Sec. 7.  Notwithstanding the second sentence of the sixth paragraph of G.S. 105-164.4(1), the Department of Transportation may deduct and retain from the sales tax on motor vehicles collected pursuant to the subdivision an amount equal to the cost to the Division of Motor Vehicles of collecting the sales tax on motor vehicles, but not to exceed four hundred seventy-five thousand dollars ($475,000) per year.  The cost of collecting this tax shall be determined by the Secretary of Transportation, subject to the approval of the Director of the Budget.

––-COMMISSION PAID TO BRANCH AGENTS

Sec. 8. (a) Effective July 1, 1989, Section 140(a) of Chapter 761, Session Laws of 1983, as amended by Section 202 of Chapter 1034, Session Laws of 1983, and Section 172 of Chapter 738, Session Laws of 1987 reads as rewritten:
"(a)	Notwithstanding G.S. 20-63(h), the commission paid to branch agents of the Division of Motor Vehicles is eighty-two cents (82¢) per transaction."
(b) Effective July 1, 1990, Section 140(a) of Chapter 761, Session Laws of 1983, as amended by Section 202 of Chapter 1034, Session Laws of 1983, Section 172 of Chapter 738, Session Laws of 1987, and subsection (a) of this subsection reads as rewritten:
"(a)	Notwithstanding G.S. 20-63(h), the commission paid to branch agents of the Division of Motor Vehicles is ninety-two cents (92¢) per transaction."

––-HIGHWAY FUND/ADJUSTMENTS TO REFLECT ACTUAL REVENUE

Sec. 9.  Any unreserved credit balance in the Highway Fund on June 30 of each of the fiscal years shall support appropriations in the succeeding fiscal year.  If all of the balance is not needed for these appropriations, the Director of the Budget may use the remaining excess to establish a reserve for access and public service roads, a reserve for unforeseen happenings or state of affairs requiring prompt action as provided for by G.S. 136-44.2, and other required reserves.  If all of the remaining excess is not used to establish these reserves, the remainder shall be allocated to the State-funded maintenance or construction appropriations in the manner approved by the Board of Transportation.

––-URBAN CONSTRUCTION FUNDS

Sec. 10.  Of the funds appropriated to the Department of Transportation for each year of the biennium for Urban Construction in the amount of twenty million dollars ($20,000,000), fourteen million dollars ($14,000,000) shall be allocated equally among the 14 Highway Divisions for the Small Urban Construction Program for small urban projects located within the area covered by a one-mile radius of the municipal corporate limits.  The remaining six million dollars ($6,000,000) shall be used statewide for rural or small urban highway improvements as approved by the Secretary of the Department of Transportation.

––-SPECIAL APPROPRIATIONS FOR HIGHWAYS

Sec. 11.  Of the funds appropriated to the Department of Transportation for special appropriations for highways, sixty-six million dollars ($66,000,000) for fiscal year 1989-90 and sixty-six million dollars ($66,000,000) for fiscal year 1990-91 may be used for:
(1)	Supplemental funding for highway construction, reconstruction, and rehabilitation projects for State and Federal Aid Road systems;
(2)	Supplemental funding for the planning, design and engineering of highways and acquisition of highway rights-of-way;
(3)	Matching funds for unanticipated federal-aid construction funds;
(4)	Payment for all or any portion of the interest or principal on bonds issued by the State for road and highway purposes;
(5)	A means of maintaining a uniform seasonal pace of highways construction, including scheduled ferry replacement.
Construction funds shall be allocated equitably each year among the 14 Highway Divisions.  Notwithstanding any other provisions of Chapter 136 of the General Statutes, the Department shall make allocations under this section in a manner that assures that at the end of the second year each of the 14 Highway Divisions, over the two-year period, has been allocated an equal amount, insofar as possible, of all funds allocated under this section.  The Secretary shall report in writing, on a monthly basis, to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the projects that have been funded, and those projects that he reasonably expects to be funded under this section.  The report shall set out the reasons this method of funding serves the best interest of the State's transportation improvement programs.  That report shall include, among other things, the cost savings realized, and the manner in which the cost savings have been realized by the use of the funds allocated under this section.

PART IV.––-GENERAL PROVISIONS

––-SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS/AUTHORIZATION FOR EXPENDITURES

Sec. 12.  There is appropriated out of the cash balances, federal receipts, and departmental receipts available to each department, sufficient amounts to carry on authorized activities included under each department's operations.  All these cash balances, federal receipts, and departmental receipts shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by statute.  The Director of the Budget shall develop necessary budget controls, regulations, and systems to ensure that these funds and other State funds subject to the Executive Budget Act, may not be spent in a manner which would cause a deficit in expenditures.
Pursuant to G.S. 143-34.2, State departments, agencies, institutions, boards, or commissions may make application for, receive, or disburse any form of non-State aid.  All non-State monies received shall be deposited with the State Treasurer unless otherwise provided by State law.  These funds shall be expended in accordance with the terms and conditions of the fund award that are not contrary to the laws of North Carolina.

––-INSURANCE AND FIDELITY BONDS

Sec. 13.  All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Insurance Department, and the cost of placement shall be paid by the affected department, institution, or agency with the approval of the Insurance Commissioner.

––-SALARY ADJUSTMENT FUND

Sec. 14.  The Director of the Budget may transfer to General Fund budget codes from the General Fund salary adjustment appropriation, and may transfer to Highway Fund budget codes from the Highway Fund salary adjustment appropriation amounts required to support approved salary adjustments and reclassifications made necessary by difficulties in recruiting and holding qualified employees in State government.  The funds may be transferred only when the use of salary reserve funds in individual operating budgets is not feasible.
Of the funds appropriated in Section 2 of this act to the Reserve for Salary Adjustment Fund three million five hundred thousand dollars ($3,500,000) is included to continue funds approved by the 1987 General Assembly for Shift Premium Pay/Nursing Salaries and may be transferred by the Office of State Budget and Management and spent in accordance with the provisions of Section 9 of Chapter 738, Session Laws of 1987, as rewritten by Section 100 of Chapter 1086, Session Laws of 1987.

––-SALARY RELATED CONTRIBUTIONS/EMPLOYERS

Sec. 15.  Required employer salary-related contributions for employees whose salaries are paid from department, office, institution, or agency receipts shall be paid from the same source as the source of employee's salary.  If an employee's salary is paid in part from the General Fund and in part from department, office, institution, or agency receipts, required employer salary-related contributions may be paid from the General Fund only to the extent of the proportionate part paid from the General Fund in support of the salary of the employee, and the remainder of the employer's requirements shall be paid from the source that supplies the remainder of the employee's salary.  The requirements of this section as to source of payment are also applicable to payments on behalf of the employee for hospital-medical insurance, longevity, unemployment insurance and workers' compensation.

––-STATE'S EMPLOYER CONTRIBUTION RATES FOR RETIREMENT

Sec. 16.  The State employer contribution percentage rates of covered salaries budgeted for the retirement systems for 1989-90 and 1990-91 are (1) eleven and nineteen hundredths percent (11.19%) - Teachers and State Employees Retirement System; (2) sixteen and twenty hundredths percent (16.20%) - State Law Enforcement Officers Retirement System; (3) thirty and eighty-one hundredths percent (30.81%) - Consolidated Judicial Retirement System; and (4) thirty-six and eighty-six hundredths percent (36.86%) - Legislative Retirement System.  Each of the foregoing contribution rates includes one and ten hundredths percent (1.10%) for hospital and medical benefits.  The rate of sixteen and twenty hundredths percent (16.20%) for State Law Enforcement Officers includes the five percent (5.0%) applicable to the Supplemental Retirement Income Plan.

––-OVER REALIZED RECEIPTS

Sec. 17.  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; Provided, however, that if the receipts, other than gifts, grants and those supporting a receipt supported function, that are unanticipated, and are for a specific purpose only, collected in a fiscal year by an institution, department, or agency exceed the receipts certified for it in General Fund Codes or Highway Fund Codes, the Director of the Budget shall decrease the amount he allots to that institution, department, or agency from General Fund or Highway Fund appropriations from that Code by the amount of the excess, unless the Director of the Budget finds that the General Fund or Highway Fund appropriations from that Code are necessary to maintain the function that generated the receipts at the level anticipated in the certified budget.
The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 60 days after the end of each quarter on expenditures of receipts in excess of the amounts certified in General Fund Codes or Highway Fund Codes that did not result in a corresponding reduced allotment from appropriations from that Fund."

––-NO TRANSFERS BETWEEN ITEMS IN THE BUDGET

Sec. 19.  G.S. 143-23 reads as rewritten:
"§ 143-23. All maintenance funds for itemized purposes; transfers between objects and items.
(a)	All appropriations now or hereafter made for the maintenance of the various departments, institutions and other spending agencies of the State, are for the purposes and/or objects enumerated in the itemized requirements of such departments, institutions and other spending agencies submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission, and/or as amended by the General Assembly. The function of the Advisory Budget Commission under this subsection applies only if the Director of the Budget consults with the Commission in preparation of the budget.
(a1)	Unless otherwise allowed by law, no transfers may be made between line items in the general or highway fund certified budgets of any department, institution, or other spending agency. 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. 
					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 certified general fund or highway fund budget code is more than the amount appropriated for it.
Funds appropriated for salaries and wages may only be used for salaries and wages; premium pay ;  overtime pay ;  longevity ; unemployment compensation ; workers' compensation ; disability pay;  temporary wages ; contracted personal services ; moving expenses ; payment of accumulated annual leave ; certain awards to employees ; tort claims settlement of pending litigation claims for employees and inmates; employer's social security, retirement, and hospitalization payments; court order requirements; Industrial Commission awards; match unanticipated federal funds; disasters; and the calling out of the National Guard. 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.
”	These provisions 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 in these provisions.  Deviations must be reported quarterly to the Joint Legislative Commission on Governmental Operations.
	(b) Repealed by Session Laws 1985, c. 290, s. 8, effective July 1,  1985.
(c)	Transfers or changes as between objects and items in the budget of the Senate may be made by the President Pro Tempore of the Senate;
(d)	Transfers or changes as between objects and items in the budget of the House of Representatives may be made by the Speaker of the House of Representatives;
(e)	Transfers or changes as between objects and items in the budget of the General Assembly other than of the Senate and House of Representatives may be made jointly by the President Pro Tempore of the Senate and the Speaker of the House of Representatives."

––-LIMIT ON NUMBER OF STATE EMPLOYEES

Sec. 20.  G.S. 143-47.15 is repealed.
Sec. 21.  Article 1 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-10.2.  Limit on Number of State Employees.
The total number of permanent State funded employees, excluding employees in the State's public school system funded by way of State aid to local public school units, shall not be increased by the end of any State fiscal year by a greater percentage than the percentage rate of the residential population growth for the State of North Carolina.  The percentage rates shall be computed by the Office of State Budget and Management.  The population growth shall be computed by averaging the rate of residential population growth in each of the preceding 10 fiscal years as stated in the annual estimates of residential population in North Carolina made by the United States Census Bureau.  The growth rate of the number of employees shall be computed by averaging the rate of growth of State employees in each of the preceding 10 fiscal years as of July 1 of each fiscal year as stated in the State Budget."

PART V.––-GENERAL GOVERNMENT

––-NORTH CAROLINA SYMPHONY/GRANT-IN-AID FUNDS

Sec. 22.  As a condition of accepting State grant-in-aid funds for 1989-90 and 1990-91, the North Carolina Symphony shall operate within a balanced budget.

––-COUNCIL OF GOVERNMENTS FUNDS

Sec. 23.  (a) Of the funds appropriated by Section 2 of this act to the Department of Administration, the sum of nine hundred ninety thousand dollars ($990,000) for 1989-90 and nine hundred ninety thousand dollars ($990,000) for 1990-91 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) each 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 fifty-five thousand dollars ($55,000) each year shall be allocated to each county and smaller city based on the most recent annual estimate of the Office 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 government for the region in which that city or county is located upon receipt by the Department of Administration of a resolution of the governing board of the county or city requesting release of the funds.  If any city or county does not so request payment of funds by June 30 of a State fiscal year, that share of the allocation for that fiscal year shall revert to the General Fund.
(c) A council of governments may use funds appropriated by this section only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, and other activities as deemed appropriate by the member governments.
(d) Funds appropriated by this section may not be used for payment of dues or assessments by the member governments, and may not supplant funds appropriated by the member governments.
(e) As used in this section "Larger City”means an incorporated city with a population of 50,000 or over.  "Smaller City”means any other incorporated city.

PART VI.––-HUMAN RESOURCES

––-MEDICAID

Sec. 24.  (a) Appropriations in Section 2 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 - 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.
(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 four cents ($4.04) 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, Mental Health Clinics, 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.
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, EPSDT screens, 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.
Any changes in services or bases of payment in the Medicaid program must be approved by the Director of the Budget with the advice of the Advisory Budget Commission.
(b)	Allocation of Nonfederal Cost of Medicaid.  The State shall pay eighty-five percent (85%) and the counties shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section.
(c)	Co-payment for Medicaid Services.  The Department of Human Resources may establish co-payment up to the maximum permitted by federal law and regulation.
(d)	Medicaid and Aid to Families with Dependent Children Income Eligibility Standards.  Effective until January 1, 1988, the maximum net family annual income eligibility standards for Medicaid and Aid to Families with Dependent Children and the Standard of Need for Aid to Families with Dependent Children shall continue as set by Section 118 of Chapter 1014 of the 1985 Session Laws.  Regular Session, 1986.  Effective January 1, 1988, the maximum net family annual income eligibility standards for Medicaid and Aid to Families with Dependent Children, and the Standard of Need for Aid to Families with Dependent Children shall be as follows:
	Categorically Needy	Medically Needy
	Family	Standard	AFDC Payment
	Size	Of Need	Level*	AA,AB,AD*
1	$ 4,248	$ 2,124	$ 2,900
2	5,544	2,772	3,700
3	6,384	3,192	4,300
4	6,984	3,492	4,700
5	7,608	3,804	5,100
6	8,208	4,104	5,500
7	8,760	4,380	5,900
8	9,168	4,584	6,200
*	Aid to Families with Dependent Children (AFDC); Aid to the Aged (AA); Aid to the Blind (AB); Aid to the Disabled (AD).
The payment level for Aid to Families with Dependent Children shall be fifty percent (50%) of the standard of need.
These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
(e)  Spouse Responsibility.  The Department of Human Resources, Division of Medical Assistance, may not consider the income or assets of the spouse of a person who is admitted as a long-term care patient in a certified public or private intermediate care or skilled nursing facility to be available to the institutionalized person.  This provision will remain in effect until superseded by federal law under the Medicare Catastrophic Coverage Act of 1988, on September 1, 1989.
(f)  Dental Coverage Limits.  Dental services will be provided on a restricted basis in accordance with regulations developed by the Department.  Funds for dental services shall be disbursed only with prior approval by the Department of Human Resources, Division of Medical Assistance, as required by this subsection.  No prior approval shall be required for emergency services or routine services.  Routine services are defined as examinations, X-rays, prophylaxes, nonsurgical tooth extractions, amalgam fillings, and fluoride treatments.  Prior approval shall be required for all other services and for routine services performed more than two times during a consecutive 12-month period.  The Department of Human Resources shall adopt rules, as provided by the Administrative Procedure Act, to implement this subsection.
(g)  Dispensing of Generic Drugs.  Notwithstanding G.S. 90-85.27 through G.S. 90-85.31, under the Medical Assistance Program (Title XIX of the Social Security Act) a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber personally indicates, either orally or in his own handwriting on the prescription order, "dispense as written”or words of similar meaning.
As used in this subsection "brand name”means the proprietary name the manufacturer places upon a drug product or on its container, label or wrapping at the time of packaging; and "established name”has same meaning as in Section 502(e)(3) of the Federal Food, Drug and Cosmetic Act as amended, 21 U.S.C. 352(e)(3).
(h)  Exceptions to Service Limitations, Eligibility Requirements, and Payments.  Service limitations, eligibility requirements, and payments, and payments bases in this section may be waived by the Department of Human Resources, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans or community based services programs in accordance with plans approved by the U.S. Department of Health and Human Services, or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient.
(i)  Volume Purchase Plans and Single Source Procurement.  The Department of Human Resources, Division of Medical Assistance, may, subject to the approval of a change in the State Medicaid Plan, contract for services, medical equipment, supplies and appliances by implementation of volume purchase plans, single source procurement or other similar processes in order to improve cost containment.
(j)  Cost Containment Programs.  The Department of Human Resources, Division of Medical Assistance, may undertake cost containment programs including preadmissions to hospitals and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.
(k)  For all Medicaid eligibility classifications for which the federal poverty level, or a percentage of the federal poverty level, is used as an income limit for eligibility determination, the income limits will be updated each July 1 immediately following publication of federal poverty guidelines.
(1)	Effective January 1, 1988, the Department of Human Resources shall provide Medicaid to 19, 20, and 21 year olds in accordance with federal rules and regulations.
(m)  The Department of Human Resources shall provide Medicaid coverage for pregnant women; for children under age 3; for children under age 4 beginning October 1, 1989; and for children under age 5 beginning October 1, 1990, whose family income is equal to or less than the federal poverty guidelines as revised annually.  Services to pregnant women eligible under this provision continue throughout the pregnancy but include only those services 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 service to pregnant women and to children eligible under this section, no resource test shall be applied.

––-NON-MEDICAID REIMBURSEMENT

Sec. 24.  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.
Goods and services procured through the competitive bidding process that result in a cost greater than that reimbursed under the North Carolina Medical Assistance Program are exempt from this requirement.
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 hospitals days.  When the Medical Assistance Program's per diem rates for impatient 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, 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's Special Health Services.

––-PRESCRIPTION DRUG FUNDS FOR DISABLED

Sec. 25.  Of the funds appropriated for the 1989-91 biennium and included in Section 2 of this act to the Department of Human Resources, Division of Health Services, the sum of two hundred forty thousand dollars ($240,000) each year shall be used to continue the prescription drug reimbursement program for the disabled to provide assistance in purchasing prescription drugs to people terminated from the Social Security Disability Program from March 1, 1981, through September 30, 1983, begun pursuant to Section 64(1), Chapter 1034, 1983 Session Laws.  The prescription drug program shall serve only current residents of North Carolina.  The rules for operating this prescription drug assistance program shall be adopted by the Secretary of the Department of Human Resources pursuant to recommendations of the Disability Task Force as authorized by Section 82, Chapter 757, 1985 Session Laws.

––-MATERNAL AND CHILD HEALTH CARE

Sec. 26.  (a)	The Division of Health Services shall ensure that local health departments do not reduce county appropriations for maternal and child health services provided by the local health departments because they have received State appropriations pursuant to this act.
(b)	In order to ensure that funds appropriated by Section 2 of this act for maternal and child health care services to the Department of Human Resources,  Division of Health Services, provide medical services to as many eligible women of childbearing age as possible, especially to adolescents, these funds may be used only for the purposes of providing prenatal clinics, child health services, purchase of medical services, and family planning services, including education and counseling and medical supplies.
(c)	All income earned by local health departments from Maternal and Child Health Programs supported in whole or in part from State or federal funds, received from the Department of Human Resources, Division of Health Services, shall be budgeted and expended by local health departments to further the objectives of the program that generated the income.

––-SEPTAGE MANAGEMENT FEES

Sec. 27.  Receipts collected by the Department of Human Resources pursuant to G.S. 130A-291.1 are appropriated to the Department of Human Resources to establish and operate the North Carolina Septage Management Program.

––-DAY CARE ALLOCATION FORMULA

Sec. 28.  (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)	Fifty percent (50%) of budgeted funds shall be distributed according to the county's population; and
(2)	Fifty percent (50%) of budgeted funds shall be distributed based upon the county's poverty rate as a percentage of the sum total of all North Carolina's county poverty rates.
(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.
(c)	The Department of Human Resources shall distribute the funds appropriated and otherwise available to the Department for the purchase of slots in day care for minor children of needy families so as to serve the greatest number of children possible.

––-DAY CARE FUNDS/MATCH REQUIREMENT

Sec. 29.  No local matching funds may be required by the Department of Human Resources as a condition of any locality's receiving any State day care funds appropriated by this act unless federal law requires such a match.

––-DAY CARE RATES

Sec. 30.  (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 facilities 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 Department of Human Resources' Child Day Care Section in the Division of Facility Services.  A market rate shall be calculated for each county and for each age group of enrollees, and shall be the county average of all fees charged to unsubsidized private paying parents for each age group of enrollees.  The county market rates shall be calculated from facility fee schedules collected by the Child Day Care Section during its annual 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.  The fee for the purchase of care from a small day care home as defined in G.S. 110-86(4)	is one hundred fifty dollars ($150.00) per month.  The fee for the purchase of care from an Individual Child Care Arrangement is one hundred dollars ($100.00) per month.
(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.

––-NO EYE CLINICS IN CERTAIN COUNTIES

Sec. 31.  No funds may be expended for the Department of Human Resources, Division of Services for the Blind, to hold eye clinics in any county in which an optometrist or ophthalmologist is willing to perform the services that would otherwise be performed by the clinic.

––-DOMICILIARY HOME RATE INCREASE

Sec. 32.  Effective January 1, 1990, the maximum monthly rate for ambulatory residents in domiciliary care facilities shall be six hundred ninety-six dollars ($696.00) and the maximum monthly rate for semi-ambulatory residents shall be seven hundred thirty dollars ($730.00).  Effective January 1, 1991, the maximum monthly rate for ambulatory residents shall be increased to seven hundred six dollars ($706.00) and for semi-ambulatory residents seven hundred forty dollars ($740.00).

––-AGED AND FAMILY CARE COUNTY AND STATE SHARES OF COSTS

Sec. 33.  The State shall pay fifty percent (50%), and the counties shall pay fifty percent (50%) of the authorized rates for domiciliary care in homes for the aged and for family care homes, including area mental health agency operated group homes.

––-AFDC/WOMEN IN THIRD TRIMESTER OF PREGNANCY

Sec. 34.  The Division of Social Services, Department of Human Resources, shall provide Aid to Families with Dependent Children to women in their third trimester of pregnancy regardless of whether these women have children, if they otherwise qualify for these payments.

––-COMMUNITY WORK EXPERIENCE PROGRAM TRAINING FUNDS

Sec. 35.  Funds appropriated for training of participants in the Community Work Experience Program may be used to match federal funds available for training AFDC participants from sources other than the Community Work Experience Program.

––-FAMILY SUPPORT

Sec. 36.  (a)	Retain (b), (c), (d) of Section 79 of Chapter 738 of the 1987 Session Laws and delete (a), (e) and (f) to continue to read as follows:
(b)	The General Assembly finds that it is in the best interest of the State and of all its citizens to encourage recipients of Aid to Families with Dependent Children to obtain jobs and become self-sufficient.  It further finds that, by continuing medical assistance and providing limited wage assistance to those recipients who are working, the State will make it possible to help many recipients to be able to keep their jobs, support their families, and become self-sufficient.
(c)	The Social Services Commission shall adopt rules to change the way it budgets Aid to Families with Dependent Children payments that will result in more recipients being able to find work and keep working.  These rules shall include subtracting countable income from the State standard of need, and paying a percentage of the difference.  The percentage that shall be applied to determine the amount of assistance shall be the same percentage set in the Current Operations Appropriations Act that determines the Aid to Families with Dependent Children payment level from the standard of need.
(d)	The Department of Human Resources shall authorize a special needs allowance under rules adopted by the Social Services Commission to those recipients of Aid to Families with Dependent Children who are teen-age parents and who are enrolled in elementary or secondary school or in a G.E.D. program.  This grant shall cover the cost of child care and of transportation costs to the child care provider, in accordance with federal rules and regulations.

––-ADOPTION SUBSIDY

Sec. 37.  The adoption subsidy paid monthly by the Division of Social Services to eligible families who adopt hard to place children shall be established at one hundred fifty dollars ($150.00) per month.

––-FOSTER CARE BOARD RATE

Sec. 38.  Funds appropriated in Section 2 of this act for foster care board rates shall be established at two hundred dollars ($200.00) per child per month.

––-RETROSPECTIVE ACCOUNTING ADJUSTMENT/AFDC

Sec. 39.  The Department of Human Resources shall use funds appropriated in Section 2 of this act to provide a State supplementary payment to Aid to Families with Dependent Children households adversely affected by the retrospective accounting procedure as allowed under G.S. 403(a) of the Social Security Act (42 U.S.C. G.S. 603(a)), as amended by G.S. 157(a) of the Tax Equity and Fiscal Responsibility Act of 1982.  The amount of the State supplement shall not exceed the maximum payment standard for the Aid to Families with Dependent Children Program.

––-EMPLOYMENT PROGRAMS RESERVE

Sec. 40.  Of the funds appropriated in Section 2 of this act to the Department of Human Resources, Division of Social Services, the sum of one hundred seventy-three thousand four hundred thirty dollars ($173,430) for the 1989-90 fiscal year and the sum of one hundred seventy-three thousand four hundred thirty dollars ($173,430) for the 1990-91 fiscal year shall be used to establish a reserve in the Division of Social Services for employment programs.  Funds from this reserve may be used only to offset federal budget reductions in the event that federal WIN funds are reduced or terminated during the 1989-91 fiscal biennium.  Unexpended funds remaining in this reserve at the end of the 1989-90 fiscal year or the 1990-91 fiscal year shall revert to the General Fund.

––-LIMITATIONS ON STATE ABORTION FUND

Sec. 41.  Section 93 of Chapter 479 of the 1985 Session Laws as amended by Section 75 of Chapter 738 of the 1987 Session Laws is retained and further amended by rewriting subdivisions (1) and (3), as follows:
(1)	It shall be the policy of the State 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.  Funds in the amount of two hundred thousand dollars ($200,000) each year are appropriated in Section 2 of this act to the Department of Human Resources, Division of Social Services to reimburse medical providers, including licensed physicians, licensed hospitals, and other facilities for those services permitted under G.S. 14-45.1 except that the funds will be limited to reimbursing providers for services provided within the first 135 days of pregnancy.  No State funds in excess of two hundred thousand dollars ($200,000) per fiscal year, whether from tax revenue, gift, bequest, grant, or any other sources, may be expended for the performance of abortions during the 1989-90 fiscal year or the 1990-91 fiscal year.
(3)	Eligibility.  Applicants for services under this section shall be residents of North Carolina:
a.	Who receive Aid to Families with Dependent Children and:  the woman is a victim of rape or incest; or the woman's health would be impaired by the pregnancy, as determined in the discretion of two physicians selected by the woman; or where the woman is mentally retarded; or where a physician has determined that a fetal deformity is present; or
b.	Who receive health support services in conjunction with protective services and disabled adults and:  the woman is a victim of rape or incest; or the woman's health would be impaired by the pregnancy, as determined in the discretion of two physicians selected by the woman; or where the woman is mentally retarded; or where a physician has determined that fetal deformity is present; or
c.	Whose income is at or below four thousand two hundred twenty-six ($4,226) per year and:  the woman is a victim of rape or incest; or the woman's health would be impaired by the pregnancy, as determined in the discretion of two physicians selected by the woman; or where the woman is mentally retarded; or the applicant is a minor, as defined by G.S. 48A-2; or where a physician has determined that a fetal deformity is present.

––-AGING FEDERAL MATCHING FUNDS

Sec. 42.  Effective July 1, 1989, the Department of Human Resources, Division of Aging, may use funds appropriated in Section 2 of this act to the Division of Aging, to provide the State matching requirement necessary to draw down federal money available, through Title III of the Older Americans Act.

––-CAREGIVER SUPPORT

Sec. 43.  (a) Of the funds appropriated to the Division of Aging, Department of Human Resources for the 1989-91 biennium and included in Section 2 of this act, the sum of one million eight thousand dollars ($1,008,000) for each fiscal year shall be used for services that support family caregivers of elderly persons with functional disabilities, whether physical or mental, who want to stay in their homes rather than be institutionalized but who need assistance with the activities of daily living in order to remain at home.  The services that may be purchased from funds received under this section include:
(1)	Respite Care.
(2)	Adult Day Care.
(3)	Stipends and other related costs for senior companions, modeled after the federal Senior Companion Program.
(4)	Other related services that meet needs not now adequately addressed by the services described in subsections (1) through (3) of this subsection.
(b) The Division of Aging shall expend funds for these services according to the population of persons 70 years or more in each region.  The Division of Aging shall use a minimum of ninety-five percent (95%) of the funds it receives under this section for the services described in subdivisions (1) through (4) of subsection (a) of this section and may only use a maximum of five percent (5%) for technical assistance as described in subsection (c) of this section.  The Division of Aging shall choose providers in accordance with procedures under the Older Americans Act.  Funds allocated by the Division pursuant to this section shall be allocated by October 1, 1989.
(c) The Division of Aging may contract for technical assistance.  The technical assistance shall include training assistance, coordination of various service delivery and funding sources, and ideas for innovative ways to build a lasting system of services for family caregivers.

––-IN-HOME AGING SERVICES

Sec. 44.  Of the funds appropriated from the General Fund to the Division of Aging, Department of Human Resources, for the 1989-91 biennium, and included in Section 2 of this act, the sum of seven hundred twenty thousand dollars ($720,000) for each fiscal year shall be used to provide funds for additional in-home aide services that enable the frail elderly to remain in their homes and avoid institutionalization.
The Division shall administer the in-home aide services and activities funded by this section.  The Division of Aging shall choose in-home service providers in accordance with procedures under the Older Americans Act and shall include the following criteria:  documented capacity to provide care, adequacy of quality assurance, training, supervision, abuse prevention complaint mechanisms, and costs.  All funds allocated by the Division pursuant to this section shall be allocated on the same basis as funding under the Older Americans Act by October 1, 1989.

––-CHRONICALLY MENTALLY ILL

Sec. 45.  Funds appropriated in Section 2 of this act to the Department of Human Resources, Division of Mental Health, Mental Retardation and Substance Abuse Services, for the chronically mentally ill shall be allocated to the area mental health, mental retardation, and substance abuse authorities on a per capita basis, except for those funds transferred by Section 108(c) of Chapter 1014 of the 1985 Session Laws.  If those funds transferred by Section 108(c) of Chapter 1014 of the 1985 Session Laws are used to contract for services, up to five percent (5%) of the funds may be retained to cover costs for administrative and clinical supervision of the contract by the authority responsible for monitoring the contract.

––-LIFEGUARDIANSHIP COUNCIL FUNDS

Sec. 46.  Of the funds appropriated to the Department of Human Resources, Division of Mental Health, Mental Retardation, and Substance Abuse Services in Section 2 of this act, the sum of eighty-nine thousand dollars ($89,000) for each year of the 1989-91 biennium shall be used to provide additional operating revenue for the Lifeguardianship Council of the Association of Retarded Citizens of North Carolina.

––-MENTAL HEALTH AUTHORITY ALLOCATION

Sec. 47.  In allocating expansion dollars for area mental health, mental retardation and substance abuse authorities, the Department of Human Resources, Division of Mental Health, Mental Retardation, and Substance Abuse Services, shall take into account inequities in service availability and funding among the area authorities through these funding criteria:
(a)	A minimum of fifty percent (50%) of community-based expansion funds shall be distributed on a regional per capita basis;
(b)	Up to fifty percent (50%) of community-based expansion funds may be allocated to area authorities for the purpose of equalization.  Such portion shall be distributed to area authorities in the categories of adult mental health, child mental health, mental retardation/developmental disability, and substance abuse based on disability specific per capita Division funding.  Only area authorities falling below the 50th percentile of funding within a disability category on a statewide basis shall be eligible for this portion of expansion funding; and
(c)	Of these amounts, a maximum of five percent (5%) of community-based expansion funds allocated to an area authority may be utilized for administrative costs at the area authority level.

––-MIXED BEVERAGE TAX FOR AREA MENTAL HEALTH PROGRAMS

Sec. 48.  Funds received by the Department of Human Resources from the tax levied on mixed beverages under G.S. 18B-804(b)(8) shall be expended by the Department of Human Resources as prescribed by G.S. 18B-805(h).  These funds shall be matched by local funds in accordance with the State/local ratio established by the current area mental health matching formula.  These funds shall be allocated to the area mental health programs on a per capita basis as determined by the Office of State Budget and Management's most recent estimates of county populations.

––-REGIONAL ADOLESCENT PSYCHIATRIC SERVICES

Sec. 49.  Of the funds appropriated in Section 2 of this act to the Division of Mental Health, Mental Retardation, and Substance Abuse Services, Department of Human Resources, the sum of four hundred ninety-nine thousand three hundred fifty-eight dollars ($499,358) for each year of the 1989-91 biennium shall be used by the Lee-Harnett Area Mental Health, Mental Retardation, and Substance Abuse Authority, to enable the Authority to contract with Good Hope Hospital to provide regional adolescent in-patient psychiatric services.

––-WILLIE M.

Sec. 49.1.  (a)	Legislative Findings.  The General Assembly finds:
(1)	That there is a need in North Carolina to provide appropriate treatment and education programs to children under the age of 18 who suffer from emotional, mental, or neurological handicaps accompanied by violent or assaultive behavior;
(2)	That children meeting these criteria have been identified as a class in the case of Willie M., et al. vs. Hunt, et al.; and
(3)	That these children have a need for a variety of services, in addition to those normally provided, that may include but are not limited to residential treatment services, educational services, and independent living arrangements.
(b)	Funds for Department of Human Resources.  It is the intent of the General Assembly that funds appropriated in Section 2 of this act to the Department of Human Resources for serving members of the Willie M. Class be expended only for programs serving members of the Willie M. Class identified in Willie M., et al. vs. Hunt, et al., including evaluations of potential class members.  It is recognized that therapeutic or economic reasons may, at times, require certain of these services to serve a mixed clientele of Willie M. Class members and other clients.  To the maximum extent possible, however, these funds shall be expended solely for the benefit of Willie M. Class members.  The Department shall reallocate these funds among services to Willie M. Class members during the year as it deems advisable in order to use the funds efficiently in providing appropriate services to Willie M. Class children.
(c)	Funds for Department of Public Education.  Funds appropriated to the Department of Public Education in Section 2 of this act for members of the Willie M. Class are to establish a supplemental reserve fund to serve only members of the class identified in Willie M., et al. vs. Hunt, et al.  These funds shall be allocated by the State Board of Education to the local education agencies to serve those class members who were not included in the regular average daily membership and the census of children with special needs, and to provide the additional program costs which exceed the per pupil allocation from the State Public School Fund and other State and federal funds for children with special needs.
(d)	The Department of Human Resources shall continue to implement its prospective unit cost reimbursement system and shall ensure that unit cost rates reflect reasonable cost by conducting cost center service type rate comparisons and cost center line item budget reviews as may be necessary.
(e) Reporting Requirements.  The Department of Human Resources and the Department of Public Education shall submit, by May 1, 1990, 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.
(f) No State funds shall be expended on the placement and services of class members in Willie M., et al. vs. Hunt, et al. or for any other thing or purpose arising out of this litigation, now or at any time in the biennium, except for those funds appropriated in Section 2 of this act to the Departments of Human Resources and Public Education for programs serving members of the Willie M. Class identified in Willie M., et al. vs. Hunt, et al., and except for such funds as may be elsewhere appropriated by the General Assembly specifically for such purposes.  The above limitation shall not preclude the use of unexpended Willie M. funds from prior fiscal years to cover current or future needs of the Willie M. Program subject to approval by the Director of the Budget.  Such expenditures shall not be subject to the requirements of G.S. 143-18 and Section 19 of this act.
(g) Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing appropriate services to members of the class identified in Willie M., et al. vs Hunt, et al., the Department may ensure the provision of these services through contract with public or private agencies or by direct operation by the Department of such programs.
Sec. 50.  Effective July 1, 1989, the land, together with all buildings and equipment currently referred to as the Goldsboro Correctional Center shall be reallocated from the Department of Human Resources, Cherry Hospital, to the Department of Correction.  State funds appropriated to Cherry Hospital ($170,000) each year for certain operational and maintenance costs of the Goldsboro Correctional Center shall be transferred to the Department of Correction.

––-TRANSFERS OF CERTAIN FUNDS AUTHORIZED

Sec. 51.  In order to assure maximum utilization of funds in county departments of social services, county or district health agencies, and area mental health, mental retardation and substance abuse authorities, the Director of the Budget is authorized to transfer excess funds appropriated to a specific service or program fund (whether specified in a block grant plan or General Fund appropriation) into another service or program fund for local services within the budget of the respective State agency.

––-DHR EMPLOYEES AS IN-KIND MATCH

Sec. 52. Notwithstanding the limitations of Chapter 634 of the 1987 Session Laws, the Secretary of the Department of Human Resources may assign employees of the Office of Health Resources, Division of Facility Services, Department of Human Resources to serve as in-kind match to nonprofit corporations working to establish health care cost containment strategies.

––-INFLATIONARY INCREASES IN STATE AID TO LOCAL AGENCIES

Sec. 53. As required by G.S. 143-10.1, funds are included in Section 2 of this act for inflationary increases in certain local programs.  These funds shall be certified to the respective State agencies, and they shall be distributed to the local agencies' programs using the same allocation methods by which the present aid is distributed.

PART VII.––-PUBLIC SCHOOLS

––-BASIC EDUCATION PROGRAM

Sec. 54. Funds are appropriated in Section 2 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 major increases in State funds over the 1988-89 fiscal year.

	1989-90	1990-91
1.	Additional Classroom Teachers K-12	$ 47,330,790	$91,519,577
2.	Vocational Education 
	Teachers	1,041,546	2,084,276
3.	In-School Suspension 
	Teachers	1,731,555	1,732,553
4.	Instructional Support Positions	23,912,305	47,851,834
5.	Instructional/Lab/Clerical Assistants	17,064,823	34,069,650
6.	Athletic Trainer Supplement	15,000	15,000
7.	Assistant Principals	11,152,125	11,238,196
8.	Supervisors	  -  	2,629,415
9.	Assistant/Associate Superintendents	4,800,823	9,607,186
10.	Clerical Assistants	6,010,484	11,640,899

	Total Additional Basic Education Program Funding $113,059,451	$212,388,586

––-ASSISTANT PRINCIPALS

Sec. 55.  Funds are appropriated to the Department of Public Education in Section 2 of this act to change the position of Assistant Principal from a 10-month position to a 12-month position in accordance with the goals of the Basic Education Program (BEP).

––-SALARY SUPPLEMENTS NOT ELIGIBLE FOR LEGISLATIVE SALARY INCREASES

Sec. 56.  Salary supplements based on advanced educational degrees and vocational teacher salary supplements for work beyond the normal school program shall be considered a flat amount salary add-on and are not eligible for any percentage legislative salary increase granted for teachers and State employees.

––-PURCHASE OF BUSES IN LIEU OF CONTRACT TRANSPORTATION

Sec. 57.  Funds appropriated to the Department of Public Education for the 1989-91 biennium for contract transportation to serve exceptional children who are unable because of their handicap to ride the regular school buses may be used by local boards of education for the purchase of buses and minibuses as well as for the purposes authorized in this act.  These funds shall be expended in accordance with rules adopted by the State Board of Education.

PART VIII.––-COMMUNITY COLLEGES

––-OPERATING APPROPRIATIONS/NOT USED FOR RECREATION EXTENSION

Sec. 58.  Funds appropriated in Section 2 of this act to the Department of Community Colleges as operating expenses for allocation to the institutions comprising the Community College System may not be used to support recreation extension courses.  The financing of these courses by any institution shall be on a self-supporting basis, and membership hours produced from these activities may not be counted when computing full-time equivalent students for use in budget-funding formulas at the State level.

––-BOOKS AND EQUIPMENT APPROPRIATIONS/REVERT AFTER ONE YEAR

Sec. 59.  Appropriations to the Department of Community Colleges for equipment and library books are made for each year of the fiscal biennium.  All unencumbered appropriations shall revert to the General Fund 12 months after the close of each fiscal year for which they were appropriated.  Encumbered balances outstanding at the end of each period shall be handled in accordance with existing State Budget policies.  The Department shall be able to identify to the Office of State Budget and Management which appropriations will revert at the end of the 12 months after the close of each fiscal year.

––-RESERVE FUND FOR STATE BOARD OF COMMUNITY COLLEGES

Sec. 60.  Of the funds appropriated in Section 2 of this act to the Department of Community Colleges, the sum of one million dollars ($1,000,000) may be used by the State Board of Community Colleges with approval of the Director of the Budget for increased enrollments, feasibility studies, new ideas, and innovative programs.

––-ASSISTANCE TO HOSPITAL NURSING/FUND DISTRIBUTION

Sec. 61.  Funds appropriated in Section 2 of this act to the Department of Community Colleges to provide financial assistance to hospital programs of nursing education leading to diplomas in nursing that are fully accredited by the North Carolina Board of Nursing and operated under the authority of a public or nonprofit hospital licensed by the North Carolina Medical Care Commission shall be distributed, upon application for financial assistance, on the basis of eight hundred fifty dollars ($850.00) for each full-time student duly enrolled in the program as of December 1 of the preceding year and on condition that accreditation is maintained.  The State Board of Community Colleges shall adopt rules to ensure that this financial assistance is used directly for faculty and instructional needs of diploma nursing programs.

––-COMMUNITY COLLEGE CAPITAL LOAN AUTHORITY

Sec. 62.  The State Board of Community Colleges is authorized to negotiate loans of capital construction funds appropriated to the institutions of the Community College System by the General Assembly between institutions upon written confirmation of agreement by both local boards of trustees.

––-FOCUSED INDUSTRIAL TRAINING PROGRAM

Sec. 63.  Notwithstanding G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the Department of Community Colleges the sum of five hundred thousand dollars ($500,000) for each year of the 1989-91 biennium to expand the Focused Industrial Training Program administered by the Department of Community Colleges.

PART IX.––-UNIVERSITIES

––-AID TO PRIVATE COLLEGES/LEGISLATIVE TUITION GRANT LIMITATIONS

Sec. 64.  (a) The amount of a tuition grant awarded to a student enrolled in a degree program at a site away from the main campus of the approved private institution, as defined in G.S. 116-22(1), may be no more than the result of the ratio of the cost per credit hour for off-campus instruction at that site to the cost per credit hour for regular, full-time on-campus instruction, multiplied by the maximum grant award.
(b) No Legislative Tuition Grant funds may be expended for a program at an off-campus site of a private institution, as defined in G.S. 116-22(1), established after May 15, 1987, unless (i) the private institution offering the program has previously notified and secured agreement from other private institutions operating degree programs in the county in which the off-campus program is located or operating in the counties adjacent to that county or (ii) the degree program is neither available nor planned in the county with the off-campus site or in the counties adjacent to that county.
An "off-campus program”is any program offered for degree credit away from the institution's main, permanent campus.
(c)	Any member of the armed services as defined in G.S. 116-143.3(a), abiding in this State incident to active military duty, who does not qualify as a resident for tuition purposes as defined under G.S. 116-143.1, is eligible for a Legislative Tuition Grant pursuant to this section if the member is enrolled as a full-time student.  The member's Legislative Tuition Grant may not exceed the cost of tuition less any tuition assistance paid by the member's employer.

––-AID TO PRIVATE COLLEGES PROCEDURE

Sec. 65.  (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, the sum of one thousand one hundred fifty dollars ($1,150) per academic year, which shall be distributed to the student as hereinafter provided.
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, 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.

––-WAKE FOREST AND DUKE MEDICAL SCHOOL ASSISTANCE/FUNDING FORMULA

Sec. 66.  Funds appropriated in Section 2 of this act to the Board of Governors of The University of North Carolina for continuation of financial assistance to the medical schools of Duke University and Wake Forest University shall be disbursed on certifications of the respective schools of medicine that show the number of North Carolina residents as first-year, second-year, third-year, and fourth-year students in the medical school as of November 1, 1989, and November 1, 1990.  Disbursement to Wake Forest University shall be made in the amount of eight thousand dollars ($8,000) for each medical student who is a North Carolina resident, one thousand dollars ($1,000) of which shall be placed by the school in a fund to be used to provide financial aid to needy North Carolina students who are enrolled in the medical school.  The maximum aid given to any student from this fund in a given year may not exceed the amount of the difference in tuition and academic fees charged by the school and those charged at the School of Medicine at The University of North Carolina at Chapel Hill.
Disbursement to Duke University shall be made in the amount of five thousand dollars ($5,000) for each medical student who is a North Carolina resident, five hundred dollars ($500.00) of which shall be placed by the school in a fund to be used to provide student financial aid to financially needy North Carolina students who are enrolled in the medical school.  No individual student may be awarded assistance from this fund in excess of two thousand dollars ($2,000) each year.  In addition to this basic disbursement for each year of the biennium, a disbursement of one thousand dollars ($1,000) shall be made for each medical student who is a North Carolina resident in the first-year, second-year, third-year, and fourth-year classes to the extent that enrollment of each of those classes exceeds 30 North Carolina students.
The Board of Governors shall establish the criteria for determining the eligibility for financial aid of needy North Carolina students who are enrolled in the medical schools and shall review the grants or awards to eligible students.  The Board of Governors shall adopt rules for determining which students are residents of North Carolina for the purposes of these programs.  The Board shall also make any regulations as necessary to ensure that these funds are used directly for instruction in the medical programs of the schools and not for religious or other nonpublic purposes.  The Board shall encourage the two schools to orient students towards personal health care in North Carolina giving special emphasis to family and community medicine.

––-NURSING EMERGENCY FINANCIAL ASSISTANCE

Sec. 67.  (a)	Funds are appropriated in Section 2 of this act to continue the Emergency Financial Assistance Fund for students in State educational nursing and licensed practical nursing programs, to be administered by each campus.  Emergency need is defined as acute financial need caused by a particular event which immediately and severely impacts a particular student's ability to continue his or her educational program in nursing on that student's current schedule.  Allowable expenses, for emergency assistance, shall include funds for child care, transportation, housing, and medical care, and shall not be considered as an ongoing source of income for those expenses.  Emergency assistance shall be limited to four hundred dollars ($400.00) per academic year for any individual.  The local Board of Trustees at each campus shall review quarterly the expenditures under this Fund, and the Department of Community Colleges and the Board of Governors of The University of North Carolina shall assess the Fund's impact on completion rates in these programs, and report their assessment to the General Assembly.
(b)	There is appropriated from the General Fund to the Department of Community Colleges the sum of four hundred ten thousand dollars ($410,000) for each year of the 1989-91 biennium and there is appropriated from the General Fund to the Board of Governors of The University of North Carolina the sum of one hundred forty thousand dollars ($140,000) for each year of the 1989-91 biennium for the Emergency Financial Assistance Fund.  These funds shall be allocated among the institutions with nursing programs, based on policies adopted by the State Board of Community Colleges and the Board of Governors of The University of North Carolina.

PART X.––-DEPARTMENT OF COMMERCE

––-SPECIAL EMPLOYMENT SECURITY ADMINISTRATION FUND/RESTRICTIONS AND REPORTS

Sec. 68.  (a)	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 three million seven hundred ninety thousand dollars ($3,790,000) for the 1989-90 fiscal year and the sum of three million seven hundred ninety thousand dollars ($3,790,000) for the 1990-91 fiscal year for the administration of the Veterans Employment Program, Employment Services Program, and Unemployment Insurance Program.  The Employment Security Commission shall report to the Joint Legislative Commission on Governmental Operations by the first of each month, prior to an expenditure of any funds appropriated by this section.  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.  The Employment Security Commission's monthly report shall include the following:
(1)	The amount of funds to be expended from this appropriation and the intended purposes of this expenditure;
(2)	Any federal funds or other additional funds to be received that might reduce the amount of funds required from this appropriation;
(3)	The balance remaining in the Special Employment Security Administration Fund;
(4)	The total amount of funds previously expended from the Special Employment Security Administration Fund and the purposes of these expenditures;
(5)	Any outstanding obligations against the Special Employment Security Administration Fund; and
(6)	Any receipts expected to be generated to the Special Employment Security Administration Fund.
(b)	There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of one million six hundred forty-two thousand six hundred eighty-five dollars ($1,642,685) for the 1989-90 fiscal year and the sum of one million six hundred forty-two thousand six hundred eighty-five dollars ($1,642,685) for the 1990-91 fiscal year to continue the present level of services by the local offices.

PART XI.––-DEPARTMENT OF CORRECTION

––-RESERVE FOR DEPARTMENT OF CORRECTION

Sec. 69.  There is appropriated in Section 2 of this act to the Department of Correction a reserve in the amount of seventy-five million dollars ($75,000,000) for each year of the biennium.  These funds may be used for operating and/or construction costs in accordance with legislation enacted by the 1989 General Assembly.

––-PRISON FACILITIES CONSTRUCTION FUNDS

Sec. 70.  (a)	Of the funds appropriated in Section 2 of this act to the Department of Correction for the purpose of construction of prison facilities, the Office of State Budget and Management may contract for and supervise all aspects of administration, technical assistance, design, construction, or demolition of prison facilities without being subject to the requirements of the following statutes and rules implementing those statutes:  G.S. 143-135.26(1), 143-128, 143-129, 143-132, 143-134, 143-131, 143-64.10 through 143-64.13, 113A-1 through 113A-10, 113A-50 through 113A-66, 133-1.1(b), and 133-1.1(g).  All contracts for the design, construction or demolition of these facilities shall include a penalty for failure to complete the work by a specified date.
(b)	The Office of State Budget and Management shall report to the cochairmen of the Prison Construction Subcommittee of the Joint Legislative Commission on Governmental Operations at least monthly and shall report quarterly to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the funds allocated by this section.  The report shall include information on which contractors have been selected, what contracts have been entered into, the projected and actual occupancy dates of facilities contracted for, the number of prison beds to be constructed on each project, the location of each project, and the projected and actual cost of each project.

PART XII.––-SPECIAL PROVISIONS/APPROPRIATIONS ACT

––-EXPENDITURE OF FUNDS

Sec. 71.  G.S. 143-16.3 is repealed.

––-CONTINGENCY AND EMERGENCY FUND

Sec. 72.  Of the funds appropriated in Section 2 of this act to the Contingency and Emergency Fund the sum of two hundred twenty-six thousand dollars ($226,000) shall be allocated to The University of North Carolina at Chapel Hill, Division of Health Affairs for the regional TEACCH Center and two hundred sixty-two thousand dollars ($262,000) shall be allocated to The University of North Carolina at Chapel Hill, Division of Health Affairs for the Autistic Society of North Carolina.

––-UNIFORM LAWS COMMISSION FUNDS

Sec. 73.  Of the funds appropriated for the 1989-91 biennium to the Contingency and Emergency Fund the sum of twenty thousand dollars ($20,000) each fiscal year may be allocated by the Governor to the Department of Justice for the Uniform Law Commission to support travel to necessary meetings for the Commission.

––-EXECUTIVE BUDGET ACT REFERENCE

Sec. 74.  The provisions of the Executive Budget Act, Chapter 143, Article 1, of the General Statutes, as amended by this act, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

––-EFFECT OF MOST LIMITATIONS AND DIRECTIONS IN TEXT/ONLY-1989-91

Sec. 75.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1989-91 biennium, the textual provisions of this act shall apply only to funds appropriated for and activities occurring during the 1989-91 biennium.

––-SEVERABILITY CLAUSE

Sec. 76.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of the act as a whole or any part other than the part so declared to be unconstitutional or invalid.

––-EFFECTIVE DATE

Sec. 77.  This act shall become effective July 1, 1989.