GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	3 

HOUSE BILL 1340
Committee Substitute Favorable 6/11/92
Third Edition Engrossed 6/12/92

Short Title:  Current Operations Appropriations 1992.	(Public)
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Sponsors:
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Referred to:  
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May 27, 1992

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE APPROPRIATIONS AND BUDGET REVENUE ACT OF 1991, AS AMENDED, AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.
The General Assembly of North Carolina enacts:

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

TITLE OF ACT
Sec. 2.  This act shall be known as "The Current Operations Appropriations Act of 1992."

PART 1.  GENERAL FUND APPROPRIATIONS

CURRENT OPERATIONS/STATE GOVERNMENT
Sec. 3.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated, are made for the fiscal year ending June 30, 1993, 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 1992-93 fiscal year.  Amounts set out in brackets are reductions from General Fund appropriations for the 1992-93 fiscal year.

Current Operations/State Government	 1992-93

Judicial Department	$ 8,007,993

Department of the Governor
01.	Office of State Budget
and Management-Special Appropriations	750,000

Department of State Auditor	(118,694)

Department of State Treasurer	265,000

Department of Public Education
01.	Aid to Local School Administrative
Units	(16,372,501)
02.	Department of Public Instruction	7,592,040

Department of Justice	969,746

Department of Administration
01.	Administration	887,400
02.	State Controller	2,200,000

Department of Agriculture	299,234

Department of Labor	3,836,526

Department of Insurance	999,944

Department of Transportation
01.	Aeronautics	2,666,666

Department of Environment, Health, and
Natural Resources	7,002,697

Administrative Rules Review Commission	4,500

Department of Human Resources
01.	Alcohol Drug Abuse Treatment Center - 
Black Mountain	(72,569)
02.	Alcohol Drug Abuse Treatment Center - 
Butner	40,040
03.	Alcohol Drug Abuse Treatment Center - 
Greenville	2,719
04.	N.C. Special Care Center	(898,821)
05.	Black Mountain Center	(1,196,424)
06.	DHR - Secretary	100,000
07.	Division of Aging
08.	Schools for the Deaf
and Hard of Hearing
09.	Social Services	9,908,364
10.	Medical Assistance	6,050,893
11.	Social Services - State Aid to
Non-State Agencies	720,960
12.	Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services	9,343,135
13.	Dorothea Dix Hospital	(1,808,829)
14.	Broughton Hospital	(1,148,100)
15.	Cherry Hospital	(1,468,425)
16.	John Umstead Hospital	(1,525,069)
17.	Western Carolina Center	542,516
18.	O'Berry Center	(973,982)
19.	Murdoch Center	(1,058,265)
20.	Caswell Center	(409,736)
21.	Division of Facility Services	12,671,793
22.	Division of Vocational
Rehabilitation Services	380,000
23.	Division of Youth Services	1,891,170

Total Department of
Human Resources	31,091,370

Department of Correction	7,577,301

Department of Economic and
Community Development
01.	Economic and Community
Development	4,675,688
02.	Rural Economic Development Center	2,200,000

Department of Revenue	550,891

Department of Crime Control
and Public Safety	877,782

University of North Carolina - Board
of Governors
01.	General Administration	(1,000,000)
02.	University Institutional
Program	1,261,131
03.	University of North Carolina
at Chapel Hill
a.	Academic Affairs	(855,000)
b.	Health Affairs	(659,872)
04.	North Carolina State University
at Raleigh
a.	Academic Affairs	(950,000)
05.	University of North Carolina at
Greensboro	(344,000)
06.	University of North Carolina at
Charlotte	(15,000)
07.	University of North Carolina at
Wilmington	(55,000)
08.	East Carolina University
a.	Academic Affairs	(86,000)
b.	Division of Health Affairs	(1,000,000)
09.	Fayetteville State University	(54,000)
10.	North Carolina Central
University	(75,000)
11.	UNC Hospitals at Chapel Hill	(5,969,239)

Total University of North
Carolina - Board of Governors	(9,801,980)

Department of Community Colleges	15,066,327

State Board of Elections	24,475

Contingency and Emergency

Reserve for Salary Reduction - 
Positions Vacated by Retirement	(19,500,000)

Reserve for Salary Increases	108,500,000

Salary Reserve Deletions	(1,926,180)

GRAND TOTAL CURRENT OPERATIONS
/GENERAL FUND	$ 158,326,225

PART 2.  HIGHWAY FUND APPROPRIATIONS

CURRENT OPERATIONS/HIGHWAY FUND
Sec. 4.  Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the fiscal year ending June 30, 1993, according to the schedule that follows.  The amounts set out in the schedule are in addition to other appropriations from the Highway Fund for these purposes for the 1992-93 fiscal year.  Amounts set out in brackets are reductions from Highway Fund appropriations for the 1992-93 fiscal year.

Current Operations-Highway Fund	 1992-93

Department of Transportation
01.	Administration	$ 3,399,922
02.	Division of Highways
a.	State Construction
(01)	Secondary Construction	446,402
(02)	Urban Construction	(1,000,000)
(03)	Spot Safety
Improvements	(1,000,000)
b.	State Funds to Match Federal
	Highway Aid
(01)	Construction	(18,000,000)
c.	State Maintenance
(01)	Secondary	(559,204)
(02)	Contract Resurfacing	(15,000,000)
d.	Ferry Operations	(750,000)
03.	Division of Motor Vehicles	4,252,600
	04.	State Aid to Municipalities	446,402
05.	Salary Adjustments for Highway
Fund Employees	(59,344)
06.	Reserve to Continue DOT
Merit Salary Increases	(86,143)
07.	Reserve for Salary Increases	7,045,254
08.	Reserve for State Employee
Health Benefit Plan	(2,675,722)
09.	Transfer to General Fund for
Reimbursement for Sales Tax
Exemption	700,000
Appropriations for Other State Agencies
01.	Crime Control and Public
Safety		(603,913)

GRAND TOTAL CURRENT OPERATIONS/
HIGHWAY FUND		$ (23,443,746)

PART 3.  HIGHWAY TRUST FUND

Sec. 5.  Appropriations from the Highway Trust Fund are made for the fiscal year ending June 30, 1993, according to the schedule that follows.  The amounts set out in this schedule are in addition to other appropriations from the Highway Trust Fund for these purposes for the 1992-93 fiscal year.  Amounts set out in brackets are reductions from Highway Trust Fund appropriations for the 1992-93 fiscal year.

	1992-93  

01.  Intrastate System	$ 2,800,081
02.  Secondary Road Construction	1,113,365
03.  Urban Loops	1,207,661
04.  State Aid-Municipalities	313,365
05.  Program Administration	(434,472)

GRAND TOTAL CURRENT OPERATIONS/
HIGHWAY TRUST FUND	$ 5,000,000

PART 4.  BLOCK GRANT APPROPRIATIONS

Requested by:  Representatives Ethridge, H. Hunter, Nye, Easterling
BLOCK GRANT PROVISIONS
Sec. 6.  (a)	Appropriations from federal block grant funds are made for the fiscal year ending June 30, 1993, according to the following schedule:

TOTAL JOB TRAINING PARTNERSHIP ACT	$ 52,949,580

COMMUNITY SERVICES BLOCK GRANT

01.	Community Action Agencies	$ 9,038,133

02.	Limited Purpose Agencies	501,595

03.	Department of Human Resources
to administer and monitor
the activities of the
Community Services Block Grant	478,019

TOTAL COMMUNITY SERVICES BLOCK GRANT	$  10,017,747

COMMUNITY DEVELOPMENT BLOCK GRANT

01.	State Administration	$    957,840

02.	Urgent Needs and Contingency	   2,096,708

03.	Housing Development	   2,096,708

04.	Economic Development	   8,386,832

05.	Community Revitalization	  29,353,912

TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT	$ 42,892,000

PREVENTIVE HEALTH BLOCK GRANT

01.	Emergency Medical Services	$    245,652

02.	Basic Public Health Services    	925,542

03.	Hypertension Programs	590,230

04.	Statewide Health Promotion Programs 	   1,929,576

05.	Fluoridation of Water Supplies	228,404

06.	Rape Prevention and Rape
Crisis Programs	 91,269

07.	AIDS/HIV Education, Counseling,
and Testing	290,577

08.	Office of Minority Health and
Minority Health Council	190,000

TOTAL PREVENTIVE HEALTH BLOCK GRANT               	$  4,491,250

MATERNAL AND CHILD HEALTH SERVICES

01.	Healthy Mother/Healthy Children
Block Grants to Local Health
Departments	$ 11,673,617

02.	High Risk Maternity Clinic Services,
Perinatal Education, and Consultation
to Local Health Departments
and Other Health Care Providers	   1,412,018

03.	Services to Disabled Children	   5,215,987

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

TOTAL MATERNAL AND CHILD
HEALTH SERVICES                    	$ 18,422,152

SOCIAL SERVICES BLOCK GRANT

01.	County Departments of Social Services	$ 42,313,005 

02.	Allocation for State In-Home Services	   545,383

03.	Division of Mental Health, Developmental
Disabilities, and Substance Abuse	   5,514,782

04.	Division of Services for the Blind	   3,162,920

05.	Division of Youth Services	   1,037,868

06.	Division of Facility Services	     330,573

07.	Division of Aging	     333,656

08.	Day Care Services	  12,158,899

09.	Volunteer Services	      55,086

10.	State Administration and State Level
Contracts	   3,392,468

11.	Voluntary Sterilization Funds	      98,710

12.	Transfer to Maternal and Child
Health Block Grant	   1,585,833

13.	Adult Day Care Services	     314,229

14.	Allocation to the Home and
Community Care Block Grant
Persons Age 60 and Over	   1,511,654

15.	County Departments of Social Services for
Child Abuse/Prevention and
Permanency Planning	     394,841

16.	Allocation to Division of Maternal and
Child Health for Grants-in-Aid to Prevention
Programs                      	     439,261

17.	Transfer to Preventive Health
Block Grant for Emergency Medical Services
and Basic Public Health Services	     486,258

18.	Allocation to Preventive Health Block
Grant for AIDS Education	     290,577

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

20.	Allocation to the Division of Economic
Opportunity for Head Start,
Elderly, and Handicapped Services	     197,421

TOTAL SOCIAL SERVICES BLOCK GRANT	$ 74,208,694

LOW INCOME ENERGY BLOCK GRANT

01.	Energy Assistance Programs	$  5,926,428

02.	Crisis Intervention	   1,344,531

03.	Administration	     599,749

04.	Indian Affairs	       8,226

05.	Transfer to Social Services
Block Grant for Adult
Day Care Services	     126,423

06.	Reserve due to Delayed Federal
Funding	  20,943,028

TOTAL LOW INCOME ENERGY BLOCK GRANT	$ 28,948,385

ALCOHOL AND DRUG ABUSE AND MENTAL HEALTH
SERVICES BLOCK GRANT

01.	Allocate funds to the four regional
offices on a per capita basis
for mental health services 	$  2,250,173

02.	Programs for the Chronically
Mentally Ill	   3,323,686

03.	Continuation and expansion of
child mental health services in
accordance with the Child Mental
Health Plan including group
homes, specialized foster care,
therapeutic homes, professional
parenting programs, and respite care	   1,079,595

04.	Continuation of community-
based alcohol and drug services
including prevention, early inter-
vention, treatment, rehabilitation,
nonhospital medical detoxification,
training and specialized project for the
hearing impaired                          	   6,119,504

05.	Continuation and expansion of services
to female substance abusers,
including specialized services at
the ADATCS	   2,658,736

06.	Continuation of services to
IV drug abusers, including increased
capacity for drug screens and IV
services at the ADATCS	   3,853,579

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

08.	Funding to support the provision of
Treatment Alternatives to Street
Crimes (TASC) programs for adults
and four demonstration projects with
local jails	     577,104

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

10.	Administration	   1,507,527

TOTAL ALCOHOL, DRUG ABUSE, AND
MENTAL HEALTH SERVICES
BLOCK GRANT	$ 25,558,878

COMMUNITY YOUTH ACTIVITY PROGRAM BLOCK GRANT

01.	Development of a Community-Based Substance
Abuse Prevention Program
for Youth	$     45,288

TOTAL COMMUNITY YOUTH ACTIVITY PROGRAM
BLOCK GRANT	$     45,288

CHILD CARE AND DEVELOPMENT BLOCK GRANT

01.	Child Day Care Services	 $ 14,363,594

02.	Head Start Wrap-Around	   3,209,984

03.	Revolving Loans/Grants	      66,861

04.	County Day Care Coordinators	     592,020

05.	Staff/Child Ratio Reduction	     212,821

06.	Study of Day Care Salaries	      35,286

07.	Child Care Worker Credentials	     436,465

08.	Resource and Referral Programs	     815,699

09.	Facility Services Administration	     648,660

10.	Monitoring Improvement	     152,256

11.	Child Care Development Funds	    1,222,124

If funds appropriated through the Child Care and Development Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to other programs, in accordance with the federal requirements of the grant, in order to use the federal funds fully.

TOTAL CHILD CARE AND DEVELOPMENT
BLOCK GRANT	$ 21,755,770

(b) Decreases in Federal Fund Availability
If federal funds are reduced below the amounts specified above after the effective date of this act, then every program, in each of the federal block grants listed above, shall be reduced by the same percentage as the reduction in federal funds.
	(c) Increases in Federal Fund Availability
Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended as follows:
(1)	For the Community Development Block Grant – each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
(2)	For the Preventive Health Block Grant – additional funds shall be allocated to support the Statewide Health Promotion Programs.
(3)	For the Maternal and Child Health Services Block Grant – thirty percent (30%) of these additional funds shall be allocated to services for children with special health care needs and seventy percent (70%) shall be allocated to local health departments to assist in the reduction of infant mortality.
(4)	For other block grants – these additional funds may be budgeted by the appropriate department, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.  All these budgeted increases shall be reported to the Joint Legislative Commission on Governmental Operations and to the Director of the Fiscal Research Division.
This subsection shall not apply to Job Training Partnership Act funds.
(d) Education Setaside of JTPA Funds
The Department of Economic and Community Development shall certify to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office when Job Training Partnership Act funds have been distributed to each agency, the total amount distributed to each agency, and the total amount of eight percent (8%) Education Setaside funds received.
(e) Limitations on Community Development Block Grant Funds
Of the funds appropriated in this section for the Community Development Block Grant, not more than nine hundred fifty-seven thousand eight hundred forty dollars ($957,840) may be used for State administration; up to two million ninety-six thousand seven hundred eight dollars ($2,096,708) may be used for Urgent Needs and Contingency; up to two million ninety-six thousand seven hundred eight dollars ($2,096,708) may be used for Housing Development; up to eight million three hundred eighty-six thousand eight hundred thirty-two dollars ($8,386,832) may be used for Economic Development; and not less than twenty-nine million three hundred fifty-three thousand nine hundred twelve dollars ($29,353,912) shall be used for Community Revitalization.  If federal block grant funds are reduced or increased by the United States Congress after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (b) or (c) of this section, as applicable.
(f) Upon the federal government's release of the funds budgeted in the Low Income Energy Block Grant Reserve in this act, these funds shall be used to restore funding to all programs, if needed, other than the Weatherization Program, that were funded with Low Income Energy Assistance Block Grant funds as identified in Section 5 of Chapter 689 of the 1991 Session Laws. 

PART 5.  GENERAL PROVISIONS

Requested by:  Representatives Nesbitt, Diamont
CONTINGENCY AND EMERGENCY FUND CORRECTION
Sec. 7.  Section 8 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 8.  Of the funds appropriated in this Title to the Contingency and Emergency Fund, nine hundred thousand dollars ($900,000) for the 1991-92 fiscal year and nine hundred thousand dollars ($900,000) for the 1992-93 fiscal year shall be designated for emergency allocations, which are for the purposes outlined in G.S. 143-23(a1)(3), (4), and (5).  Two hundred twenty-five thousand dollars ($225,000) for the 1991-92 fiscal year and two hundred twenty-five thousand dollars ($225,000) for the 1992-93 fiscal year shall be designated for other allocations from the Contingency and Emergency Fund."

Requested by:  Representatives Ethridge, H. Hunter
BLOCK GRANT PLANS
Sec. 8.  G.S. 143-16.1 reads as rewritten:
"§ 143-16.1.  Federal funds.
(a)	All federal funds shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by law. Proposed budgets recommended to the General Assembly by the Governor and Advisory Budget Commission shall include information concerning the federal expenditures in State agencies, departments and institutions in the same manner as State funds. The Director of the Budget may adopt rules and regulations establishing uniform planning, budgeting and fiscal procedures, not inconsistent with federal law, that ensure that all federal funds shall be expended in a standardized manner. The function of the Advisory Budget Commission under this section applies only if the Director of the Budget consults with the Commission in preparation of the budget.
(b)	The Secretary of each State agency that receives and administers federal Block Grant funds shall prepare and submit the agency's Block Grant plans to the Fiscal Research Division of the General Assembly not later than April 20 of each fiscal year.  The agency shall submit a separate Block Grant plan for each Block Grant received and administered by the agency, and each plan shall include, but not be limited to, the following:
(1)	A delineation of the proposed dollar amount allocations by activity and by category, including dollar amounts to be used for administrative costs; and
(2)	A comparison of the proposed funding with two prior years' program budgets.
The Director of the Budget shall review for accuracy, consistency, and uniformity each State agency's Block Grant plans prior to submission of the plans to the General Assembly."

PART 5.1.  BUDGET CLARIFICATION PROVISIONS

Requested by:   Representative Nesbitt
BUDGET CLARIFICATIONS
Sec. 8.1.  (a) The General Assembly finds that it is necessary to clarify the provisions of the State budget for the 1991-93 fiscal biennium, the Executive Budget Act, and other statutes that affect the administration of the budget.  The provisions of this section are intended to provide this clarification and are not intended to make substantive changes in the law.
(b)	G.S. 143-16.3 reads as rewritten:
"§ 143-16.3.  No expenditures for purposes for which the General Assembly has considered but not enacted an appropriation.
Notwithstanding any other provision of law, no funds from any source, except for gifts, grants, and funds allocated from the Contingency and Emergency Fund by the Council of State, may be expended for any purpose, position, or other expenditure for which the General Assembly has considered but not enacted an appropriation of funds for the current fiscal period. For the purpose of this section, the General Assembly has considered a purpose, position, or other expenditure when that purpose is included in a bill or petition or when any committee of the Senate or the House of Representatives deliberates on that purpose."
(c)	G.S. 143-23 reads as rewritten:
"§ 143-23.  All maintenance funds for itemized purposes; transfers between objects or line 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 (i) purposes or programs and (ii) objects or line items 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, 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)	No transfers may be made between objects or line items in the budget of any department, institution, or other spending agency; however, with the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for an object or line item if the overexpenditure is:
(1)	In a purpose or program for which funds were appropriated for that fiscal period and the total amount spent for the purpose or program is no more than was appropriated for the purpose or program for the fiscal period;
(2)	Required to continue a purpose or program because of unforeseen events, so long as the scope of the purpose or program is not increased;
(3)	Required by a court, Industrial Commission, or administrative hearing officer's order or award or to match unanticipated federal funds;
(4)	Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; or
(5)	Required to call out the National Guard.
The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office the reason if the amount expended for a purpose or program is more than the amount appropriated for it from all sources.
Funds appropriated for salaries and wages are also subject to the limitation that they may only be used for (i)	salaries and wages or for premium pay, overtime pay, longevity, unemployment compensation, workers' compensation, temporary wages, contracted personal services, moving expenses, payment of accumulated annual leave, certain awards to employees, tort claims, and employer's social security, retirement, and hospitalization payments; or (ii) uses for which over expenditures are permitted by subdivisions (3), (4), and (5) of this subsection but the Director of the Budget shall include such use and the reason for it in his quarterly report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office.
Lapsed salary funds that become available from vacant positions are also subject to the limitation that they may not be used for new permanent employee positions or to raise the salary of existing employees.
		The requirements in this section that the Director of the Budget report to the Joint Legislative Commission on Governmental Operations shall not apply to expenditures of receipts by entities that are wholly receipt supported, except for entities supported by the Wildlife Resources Fund.
(b)	Repealed by Session Laws 1985, c. 290, s. 8, effective July 1, 1985.
(c)	Transfers or changes as between objects or line 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 or line 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 or line 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.
(f)	As used in this section:
(1)	'Object or line item' means a budgeted expenditure or receipt in the budget enacted by the General Assembly that is designated by (i) a thirteen-digit code in the 1000-object code series or (ii) an eleven-digit code in all other object code series, in accordance with the Budget Code Structure and the State Accounting System Uniform Chart of Accounts set out in the Administrative Policies and Procedures Manual of the Office of the State Controller.
(2)	'Purpose or program' means a group of objects or line items for support of a specific activity outlined in the budget adopted by the General Assembly that is designated by a nine-digit fund code in accordance with the Budget Code Structure and the State Accounting System Uniform Chart of Accounts set out in the Administrative Policies and Procedures Manual of the Office of the State Controller."
(d)	Section 351 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 351.  (a)	The Joint Appropriations Committee House/Senate Base and Expansion Budget and the Joint Appropriations Committee House/Senate Base and Expansion Budget Conference Report dated July 11, 1991, which were distributed in the House and 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 these purposes shall be considered a part of this act.
(b)	The budget enacted by the General Assembly for the maintenance of the various departments, institutions, and other spending agencies of the State for the 1991-93 fiscal biennium is a line item budget, in accordance with the Budget Code Structure and the State Accounting System Uniform Chart of Accounts set out in the Administrative Policies and Procedures Manual of the Office of the State Controller.  This budget includes the appropriations made from all sources including the General Fund, Highway Fund, special funds, cash balances, federal receipts, and departmental receipts.
The General Assembly amended the itemized budget requests submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission, in accordance with the steps that follow and the line item detail in the budget enacted by the General Assembly may be derived accordingly:
(1)	Negative reserves set out in the submitted budget were deleted and the totals were increased accordingly.
(2)	The base budget was adjusted in accordance with the base budget cuts and additions that were set out in the Joint Appropriations Committee House/Senate Base and Expansion Budget and the Joint Appropriations Committee House/Senate Base and Expansion Budget Conference Report dated July 11, 1991.
(3)	The expansion budget items were added in accordance with the Joint Appropriations Committee House/Senate Base and Expansion Budget and the Joint Appropriations Committee House/Senate Base and Expansion Budget Conference Report dated July 11, 1991, and the accompanying correction sheets.  Some of those expansion budget items were in the budget submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission.
		Expansion budget items that were funded from new receipts are included in the budget enacted by the General Assembly with program level detail.
(4)	Transfers of funds supporting programs were made in accordance with the Joint Appropriations Committee House/Senate Base and Expansion Budget and the Joint Appropriations Committee House/Senate Base and Expansion Budget Conference Report dated July 11, 1991, and the accompanying correction sheets.
The budget enacted by the General Assembly shall also be interpreted in accordance with the special provisions in this act and in accordance with other appropriate legislation.
In the event that there is a conflict between the line item budget certified by the Director of the Budget and the budget enacted by the General Assembly, the budget enacted by the General Assembly shall prevail."
(e)  G.S. 58-6-25(d) reads as rewritten:
"(d)	Use of Proceeds.  The Department of Insurance Fund is created in the State treasury.  The proceeds of the charge levied in this section and all fees collected under Articles 69 through 71 of this Chapter and under Articles 9 and 9C of Chapter 143 of the General Statutes shall be credited to the Fund.  The Fund shall be placed in an interest-bearing account and any interest or other income derived from the Fund shall be credited to the Fund.  Moneys in the Fund may be spent only pursuant to appropriation by the General Assembly and in accordance with the line item budget enacted by the General Assembly.  The Fund is subject to the provisions of the Executive Budget Act, except that no unexpended surplus of the Fund shall revert to the General Fund.  All money credited to the Fund shall be used only to pay the expenses of the Commissioner and the Department that are incurred in regulating the insurance industry and other industries in this State and the general administrative expenses of the State incident thereto."
(f)  Of the funds appropriated to the Department of Public Education for the 1991-93 fiscal biennium, the funds for the operation and maintenance of the Department of Public Instruction, for State aid to nonstate agencies, and for the operation of the State Board of Education are as follows:
DEPARTMENT OF PUBLIC EDUCATION
TOTAL REQUIREMENTS

1991-92

Department of	Aid to Local  	State Board
FUND	Public Instruction	School Administrative	of Education
Units

1000	2,276,885	  –  	118,900
1100	11,594,516	  –  	  – 
1200	 2,542,623	  –  	  – 
1300	 4,370,254	  –  	  – 
1400	12,551,101	  –  	 16,146
1500	 2,927,256	  –  	  – 
1600	11,386,980	  –  	 17,668
1700       	–  	  –  
1800	–  	3,199,427,158	  – 
1900	  491,734	  –  	  – 

TOTAL	48,141,349	3,199,427,158	152,714

1992-93

Department of	Aid to Local    	State Board
FUND	Public Instruction	School Administrative	of Education
Units

1000	 2,271,969	  –  	 93,900
1100	11,578,464	  –  	  – 
1200	 2,543,364	  –  	  – 
1300	 4,326,584	  –  	   – 
1400	12,826,595	  –  	 16,146
1500	 2,923,299	  –  	 – 
1600	11,281,018	  –  	 17,668
1700	    –    	  –  	  – 
1800	    –    	3,267,053,247	  – 
1900	   491,734	–	  – 

TOTAL	48,243,027	3,267,053,247	127,714.
(g)	G.S. 115C-21(a) is amended by adding a new subdivision to read:
"(7)	To have solely under his direction and control all matters relating to provision of staff services and support to the State Board of Education, except as otherwise provided in the Current Operations Appropriations Act."
(h)  This section is effective upon ratification.

Requested by:  Representative Nesbitt
ADDITIONAL BUDGET REPORTING REQUIREMENTS
Sec. 8.2.  (a) Effective July 1, 1992, G.S. 143-23, as rewritten by Section 8.1(c) of this act, reads as rewritten:
"§ 143-23.  All maintenance funds for itemized purposes; transfers between objects or line 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 (i) purposes or programs and (ii) objects or line items 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, 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)	No transfers may be made between objects or line items in the budget of any department, institution, or other spending agency; however, with the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for an object or line item if the overexpenditure is:
(1)	In a purpose or program for which funds were appropriated for that fiscal period and the total amount spent for the purpose or program is no more than was appropriated for the purpose or program for the fiscal period;
(2)	Required to continue a purpose or program because of unforeseen events, so long as the scope of the purpose or program is not increased;
(3)	Required by a court, Industrial Commission, or administrative hearing officer's order or award or to match unanticipated federal funds;
(4)	Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; or
(5)	Required to call out the National Guard.
The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office the reason if the amount expended for a purpose or program is more than the amount appropriated for it from all sources.  If the overexpenditure was authorized under subdivision (2)	of this subsection, the Director of the Budget shall identify in the report the unforeseen event that required the overexpenditure.
Funds appropriated for salaries and wages are also subject to the limitation that they may only be used for (i)	salaries and wages or for premium pay, overtime pay, longevity, unemployment compensation, workers' compensation, temporary wages, contracted personal services, moving expenses, payment of accumulated annual leave, certain awards to employees, tort claims, and employer's social security, retirement, and hospitalization payments; or (ii) uses for which over expenditures are permitted by subdivisions (3), (4), and (5) of this subsection but the Director of the Budget shall include such use and the reason for it in his quarterly report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office.
Lapsed salary funds that become available from vacant positions are also subject to the limitation that they may not be used for new permanent employee positions or to raise the salary of existing employees.
	The requirements in this section that the Director of the Budget report to the Joint Legislative Commission on Governmental Operations shall not apply to expenditures of receipts by entities that are wholly receipt supported, except for entities supported by the Wildlife Resources Fund.
(b)	Repealed by Session Laws 1985, c. 290, s. 8, effective July 1, 1985.
(c)	Transfers or changes as between objects or line 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 or line 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 or line 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.
(f)	As used in this section:
(1)	'Object or line item' means a budgeted expenditure or receipt in the budget enacted by the General Assembly that is designated by (i) a thirteen-digit code in the 1000-object code series or (ii) an eleven-digit code in all other object code series, in accordance with the Budget Code Structure and the State Accounting System Uniform Chart of Accounts set out in the Administrative Policies and Procedures Manual of the Office of the State Controller.
(2)	'Purpose or program' means a group of objects or line items for support of a specific activity outlined in the budget adopted by the General Assembly that is designated by a nine-digit fund code in accordance with the Budget Code Structure and the State Accounting System Uniform Chart of Accounts set out in the Administrative Policies and Procedures Manual of the Office of the State Controller."
(b)	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 on:
(1)	All employee positions that were abolished that resulted or will result in the generation of salary reserves;
(2)	All promotions, reclassifications, and salary range revisions, of greater than ten percent (10%), that will be funded with salary reserves; and
(3)	All new positions created that will be funded with salary reserves.
This section does not apply to actions taken regarding employees of The University of North Carolina.

PART 6.  OFFICE OF STATE BUDGET AND MANAGEMENT

Requested by:  Representative Grady
ONSLOW MUSEUM FUNDS/NEW PURPOSE
Sec. 9.  Funds appropriated in Section 2 of Chapter 830 of the 1987 Session Laws to the Office of State Budget and Management for a grant-in-aid to the Onslow County Commissioners to assist in relocating the Onslow County Museum from Richlands to Jacksonville may be used by the Onslow County Commissioners for construction of new museum facilities in Richlands.

PART 7.  GENERAL ASSEMBLY

Requested by:  Representatives Redwine, Anderson
LRC LAW ENFORCEMENT COMMITTEE STUDY
Sec. 10.  The Legislative Research Commission's Committee on Law Enforcement Issues may study the problem of marital rape, its status under North Carolina law, and, specifically, whether the spousal defense under G.S. 14-27.8 ought to be abolished.  The Legislative Research Commission may report the findings and recommendations of the study, if undertaken, to the 1993 General Assembly.

Requested by:  Representative Nesbitt
LEGISLATIVE RESEARCH COMMISSION MEMBERS' TERMS
Sec. 10.1.  G.S. 120-30.11 reads as rewritten:
"§ 120-30.11.  Time of appointments; terms of office.
Appointments to the Legislative Research Commission shall be made not earlier than the close of each regular session of the General Assembly held in the odd-numbered year nor later than 15 days subsequent to the close.  The term of office shall begin on the day of appointment, and shall end on January 15 of the next odd-numbered year.  No moneys appropriated to the Legislative Research Commission may be expended for meetings of the Commission, its committees or subcommittees held after January 15 of the next odd-numbered year and before the appointment of the next Legislative Research Commission."

Requested by:  Representative Nesbitt
PERFORMANCE AUDIT STUDY CONTINUED
Sec. 10.2.  Notwithstanding the provisions of Article 6B of Chapter 120 of the General Statutes and for the sole purpose of its advising the Legislative Services Commission on the conduct of the State government performance audit study directed by Section 347 of Chapter 689 of the 1991 Session Laws:
(1)	The existence of the Legislative Research Commission's Committee on the State Government Performance Audit shall continue until March 31, 1993, when it shall terminate;
(2)	Monies may be expended for the work and meetings of the Committee in reviewing and advising on the implementation and review of the State government performance audit until March 31, 1993;
(3)	The present membership of the Committee shall continue in existence until that date; and
(4)	Vacancies in the membership of the Committee shall be filled by the original appointing authority. 

PART 8.  DEPARTMENT OF REVENUE

Requested by:  Representatives Bowman, N.J. Crawford
CONTROLLED SUBSTANCE TAX PROCEEDS
Sec. 11.  (a)	Of the funds in the State Controlled Substance Tax Fund created in Section 6 of Chapter 772 of the 1989 Session Laws, the sum of five hundred ninety-four thousand one hundred fifty-eight dollars ($594,158) is transferred to the General Fund for the 1992-93 fiscal year to support the cost of administering the controlled substance tax levied by Article 2D of Chapter 105 of the General Statutes.
(b) Section 6 of Chapter 772 of the 1989 Session Laws is repealed.
(c) Article 2D of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-113.113. Use of tax proceeds.
The Secretary shall credit the proceeds of the tax levied by this Article to a special nonreverting account to be called the State Controlled Substances Tax Account until the taxpayer no longer has a current right to check the assessment of the tax.
The Secretary shall, on a quarterly basis, make a preliminary allocation of the unencumbered tax proceeds as follows: seventy-five percent (75%) of the amount collected pursuant to G.S. 105-113.111 to the State or local law enforcement agency that conducted the investigation of the dealer that led to the assessment under G.S. 105-113.111; and the remainder to the General Fund.  The Secretary shall then draw proportionally from the allocated proceeds an amount equal to one-fourth of the appropriation made to the Department of Revenue for the then current fiscal year to administer the tax; this amount shall be credited to the General Fund.  The Secretary shall then remit the remainder of the allocated proceeds in accordance with the allocations.  In making the preliminary allocation to law enforcement agencies, if more than one State or local law enforcement agency conducted the investigation, the Secretary shall determine the equitable pro rata share for each agency based on the contribution each agency made to the investigation."
(d)	G.S. 105-113.111 reads as rewritten:
"§ 105-113.111.  Assessments.
	Notwithstanding any other provision of law, an assessment against a dealer who possesses a controlled substance to which a stamp has not been affixed as required by this Article shall be made as provided in this section.  The Secretary shall assess a tax, applicable penalties, and interest based on personal knowledge or information available to the Secretary.  The Secretary shall notify the dealer in writing of the amount of the tax, penalty, and interest due, and demand its immediate payment.  The notice and demand shall be either mailed to the dealer at the dealer's last known address or served on the dealer in person.  If the dealer does not pay the tax, penalty, and interest immediately upon receipt of the notice and demand, the Secretary shall collect the tax, penalty, and interest pursuant to the procedure set forth in G.S. 105-241.1(g) for jeopardy assessments or the procedure set forth in G.S. 105-242, including causing execution to be issued immediately against the personal property of the dealer unless the dealer files with the Secretary a bond in the amount of the asserted liability for the tax, penalty, and interest.  The Secretary shall use all means available to collect the tax, penalty, and interest from any property in which the dealer has a legal, equitable, or beneficial interest.  The dealer may seek review of the assessment as provided in Article 9 of this Chapter.
	."
(e)  This section becomes effective July 1, 1992.  Subsections (b) through (d) apply to taxes collected on or after that date.

PART 9.  DEPARTMENT OF ADMINISTRATION

Requested by:  Representatives Bowman, N.J. Crawford
INDIAN CULTURAL CENTER
Sec. 12.  Of the funds appropriated to the Department of Administration in Section 3 of Chapter 689 of the 1991 Session Laws, the sum of one thousand five hundred dollars ($1,500) shall be expended for maintenance of the following State lands located in Robeson County:
(1)	386.69 acres contained in the deed dated April 14, 1983, and recorded in Deed Book 533, page 164, Robeson County Registry;
(2)	386.69 acres contained in the deed dated August 24, 1984, and recorded in Deed Book 563, page 254, Robeson County Registry;
(3)	99.62 acres contained in the deed dated March 20, 1985, and recorded in Deed Book 575, page 523, Robeson County Registry; and
(4)	10.00 acres contained in the deed dated September 11, 1985, and recorded in Deed Book 586, page 142, Robeson County Registry.
The public golf course known as the Riverside Golf Course, and any Indian Cultural Center developed or constructed on the above referenced lands shall be included in lands for which funds may be expended for maintenance under this section.  No Indian Cultural Center developed or constructed on any of the above referenced lands shall be built on a public golf course.
Nothing in this provision shall be construed inconsistent with the provisions of Section 18 of Chapter 1074 of the 1989 Session Laws.

PART 9.1.  DEPARTMENT OF INSURANCE

Requested by:   Representative Bowman
DATA FROM HEALTH CARE PROVIDERS
Sec. 12.1.  G.S. 131E-212(b)(9) reads as rewritten:
"(9)	The Commission shall implement plans for the submission of data from all health care providers beginning with the free-standing ambulatory surgery centers, subject to the availability of funds appropriated for this purpose by the General Assembly."

PART 10.  SALARIES AND BENEFITS

Requested by:  Representatives Nesbitt, Diamont
SALARY RELATED CONTRIBUTIONS/EMPLOYERS
Sec. 13.  Section 188(c) of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(c)	Effective July 1, 1992, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 1992-93 fiscal year are (i) ten and ninety-three hundredths percent (10.93%) - Teachers and State Employees; (ii) fifteen and ninety-three hundredths percent (15.93%) - State Law Enforcement Officers; (iii) eight and sixty-six hundredths percent (8.66%) - University Employees' Optional Retirement Program; (iv) twenty-six and three hundredths percent (26.03%) - Consolidated Judicial Retirement System; and (v) thirty-two and thirty hundredths percent (32.30%) - Legislative Retirement System.  Each of the foregoing contribution rates includes two percent (2%) 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 forty-two hundredths percent (0.42%) for the Disability Income Plan."

Requested by:   Representative Barnes
IMPLEMENTATION OF THE TEACHER SALARY SCHEDULE AND PROVIDE A RAISE TO ALL OTHER STATE EMPLOYEES.

INTRODUCTION
Sec. 13A.  In 1989, the General Assembly began the process of implementing a rational and equitable pay schedule for public school teachers. The General Assembly anticipated completing the implementation of the salary schedule during the 1991-92 fiscal year but was unable to do so because of severe budgetary constraints.
Sound personnel policy makes it imperative that the General Assembly complete the implementation of the teacher salary schedule during the 1992-93 fiscal year.  When the teacher salary schedule is fully implemented, each teacher will be paid based on teaching experience.
Since the 1965-66 fiscal year, only two of the pay raises granted by the General Assembly to State employees have included a lump sum amount for each State employee.   By consistently giving State employees percentage pay increases instead of lump sum increases, the General Assembly has created an enormous discrepancy between the upper and lower end of the State employee salary schedule.  State employees at the lower end of the salary schedule are experiencing great financial difficulties because of the condition of the economy and the cost-of-living.  A lump sum salary increase will, on a percentage basis, benefit most the employees at the lower end of the salary schedule and will slightly reduce the percentage gap between the upper and lower ends of the salary schedule.

APPROPRIATIONS
Sec. 13.1.  (a)	Of the funds appropriated from the General Fund to the Reserve for Salary Increases, the sum of sixty-two million two hundred thousand dollars ($62,200,000) for the 1992-93 fiscal year shall be used to provide raises for State employees and school personnel other than teachers.
(b)	Of the funds appropriated from the Highway Fund to the Reserve for Salary Increases, the sum of six million seven hundred twenty-five thousand dollars ($6,725,000) for the 1992-93 fiscal year shall be used to provide raises for State employees.
(c)	Of the funds appropriated from the General Fund to the Reserve for Salary Increases, the sum of forty-two million three hundred thousand dollars ($42,300,000) for the 1992-93 fiscal year shall be used to implement the teacher salary schedule provided in Section 24.3 of this act.  This is the equivalent of two percent (2%) of teacher payroll.
(d)	Of the funds appropriated from the Highway Fund to the Reserve for Salary Increases, the sum of three hundred twenty thousand dollars ($320,000) for the 1992-93 fiscal year shall be used to implement the teacher salary schedule provided in Section 24.3 of this act.  This is the equivalent of two percent (2%) of teacher payroll.

GOVERNOR'S SALARY INCREASE
Sec. 13.2.  G.S. 147-11(a) reads as rewritten:
"(a)	The salary of the Governor shall be one hundred twenty-three thousand eight hundred twenty-two dollars ($123,822) annually, payable monthly."

COUNCIL OF STATE/SALARY INCREASE
Sec. 13.3.  The annual salaries for members of the Council of State, payable monthly, for the 1992-93 fiscal year are:
Council of State	1992-93
Lieutenant Governor	$75,774
Attorney General	 75,774
Secretary of State	 75,774
State Treasurer	 75,774
State Auditor 	75,774
Superintendent of Public Instruction	 75,774
Agriculture Commissioner	 75,774
Insurance Commissioner	 75,774
Labor Commissioner	 75,774.

NONELECTED DEPARTMENT HEAD/SALARY INCREASES
Sec. 13.4.  In accordance with G.S. 143B-9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal State departments for the 1992-93 fiscal year are:
Nonelected Department Heads	1992-93
Secretary of Administration	$75,774
Secretary of Correction	 75,774
Secretary of Crime Control and
Public Safety	 75,774
Secretary of Cultural Resources	 75,774
Secretary of Economic and
Community Development	 75,774
Secretary of Environment, Health,
and Natural Resources	 75,774
Secretary of Human Resources	 75,774
Secretary of Revenue	 75,774
Secretary of Transportation	 75,774.

LEGISLATORS/SALARY AND EXPENSES INCREASE
Sec.13.5.  Effective upon convening of the 1993 Regular Session of the General Assembly, G.S. 120-3 reads as rewritten:
"§ 120-3.  Pay of members and officers of the General Assembly.
(a)	The Speaker of the House shall be paid an annual salary of thirty-five thousand six hundred twenty-two dollars ($35,622), payable monthly, and an expense allowance of one thousand three hundred twenty dollars ($1,320) per month.  The President Pro Tempore of the Senate shall be paid an annual salary of thirty-five thousand six hundred twenty-two dollars ($35,622), payable monthly, and an expense allowance of one thousand three hundred twenty dollars ($1,320) per month.  The Speaker Pro Tempore of the House shall be paid an annual salary of twenty thousand two hundred ninety-eight dollars ($20,298), payable monthly, and an expense allowance of seven hundred eighty dollars ($780.00) per month. the Deputy President Pro Tempore of the Senate shall be paid an annual salary of twenty thousand two hundred ninety-eight dollars ($20,298), payable monthly, and an expense allowance of seven hundred eighty dollars ($780.00) per month.  The majority and minority leaders in the House and the majority and minority leaders in the Senate shall be paid an annual salary of fifteen thousand nine hundred eighteen dollars ($15,918), payable monthly, and an expense allowance of six hundred twenty-two dollars ($622.00) per month.
(b)	Every other member of the General Assembly shall receive increases in annual salary only to the extent of and in the amounts equal to the average increases received by employees of the State, effective upon convening of the next Regular Session of the General Assembly after enactment of these increased amounts.  Accordingly, upon convening of the 1993 Regular Session of the General Assembly, every other member of the General Assembly shall be paid an annual salary of thirteen thousand twenty-six dollars ($13,026), payable monthly, and an expense allowance of five hundred twenty-two dollars ($522.00) per month.
(c)	The salary and expense allowances provided in this section are in addition to any per diem compensation and any subsistence and travel allowance authorized by any other law with respect to any regular or extra session of the General Assembly, and service on any State board, agency, commission, standing committee and study commission."

GENERAL ASSEMBLY PRINCIPAL CLERKS/SALARY INCREASES
Sec. 13.6.  G.S. 120-37(c) reads as rewritten:
"(c)	The principal clerks shall be full-time officers.  Each principal clerk shall be entitled to other benefits available to permanent legislative employees and shall be paid an annual salary of forty-six thousand six hundred eighty-six dollars ($46,686), payable monthly.  The Legislative Services Commission shall review the salary of the principal clerks prior to submission of the proposed operating budget of the General Assembly to the Governor and Advisory Budget Commission and shall make appropriate recommendations for changes in those salaries.  Any changes enacted by the General Assembly shall be by amendment to this paragraph."

SERGEANT-AT-ARMS AND READING CLERKS/SALARY INCREASES
Sec. 13.7.  G.S. 120-37(b) reads as rewritten:
"(b)	The sergeant-at-arms and the reading clerk in each house shall be paid a salary of two hundred nineteen dollars ($219.00) per week, plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return.  The sergeants-at-arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission.  The reading clerks shall serve during sessions only."

LEGISLATIVE EMPLOYEES/SALARY INCREASES
Sec. 13.8.  The Legislative Administrative Officer may increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 1990-91 by forty-three dollars and fifty cents ($43.50) per month.  Nothing in this act limits any of the provisions of G.S. 120-32.

JUDICIAL BRANCH OFFICIALS/SALARY INCREASE
Sec. 13.9.  (a)	The annual salaries, payable monthly, for specified judicial branch officials for fiscal year 1992-93 are:
Judicial Branch Officials	1992-93

Chief Justice, Supreme Court	$91,938
Associate Justice, Supreme Court	 90,054
Chief Judge, Court of Appeals	 87,186
Judge, Court of Appeals	 85,290
Judge, Senior Regular Resident
Superior Court	 78,258
Judge, Superior Court	 75,774
Chief Judge, District Court	 66,918
Judge, District Court	 64,386
District Attorney	 70,554
Assistant District Attorney - an
average of  	 45,822
Administrative Officer of the Courts	 78,258
Assistant Administrative Officer
of the Courts	 63,882
Public Defender	 70,554
Assistant Public Defender - an
average of   	 45,822.
If an acting senior regular resident superior court judge is appointed under the provisions of G.S. 7A-41, he shall receive the salary for Judge, Senior Regular Resident, Superior Court, until his temporary appointment is vacated, and the judge he replaces shall receive the salary indicated for Judge, Superior Court.
The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed forty-five thousand eight hundred twenty-two dollars ($45,822), and the minimum salary of any assistant district attorney or assistant public defender is at least twenty-three thousand three hundred ninety-four dollars ($23,394) effective July 1, 1992.
(b)	The salaries in effect for fiscal year 1991-92 for permanent, full-time employees of the Judicial Department, except for those whose salaries are itemized in this act, shall be increased by forty-three dollars and fifty cents ($43.50) per month, commencing July 1, 1992.
(c)	The salaries in effect for fiscal year 1991-92 for all permanent, part-time employees of the Judicial Department shall be increased on and after July 1, 1992, by pro rata amounts of the forty-three dollars and fifty cents ($43.50) per month.

CLERKS OF COURT/SALARY INCREASE
Sec. 13.10.  G.S. 7A-101(a) reads as rewritten:
"(a)	The clerk of superior court is a full-time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county, as determined by the population projections of the Office of State Budget and Management for the year preceding the first year of each biennial budget, according to the following schedule:
Population	Annual Salary
        	 Less than 99,999	$47,442
100,000 to 199,999			53,550
200,000 and above			61,026.

When a county changes from one population group to another, the salary of the clerk shall be changed to the salary appropriate for the new population group on July 1 of the first year of each biennial budget, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office."

ASSISTANT AND DEPUTY CLERKS OF COURT/SALARY INCREASE
Sec. 13.11.  G.S. 7A-102(c) reads as rewritten:
"(c)	Notwithstanding the provisions of subsection (a), the Administrative Officer of the Courts shall establish an incremental salary plan for assistant clerks and for deputy clerks based on a series of salary steps corresponding to the steps contained in the Salary Plan for State Employees adopted by the Office of State Personnel, subject to a minimum and a maximum annual salary as set forth below. On and after July 1, 1985, each assistant clerk and each deputy clerk shall be eligible for an annual step increase in his salary plan based on satisfactory job performance as determined by each clerk. Notwithstanding the foregoing, if an assistant or deputy clerk's years of service in the office of superior court clerk would warrant an annual salary greater than the salary first established under this section, that assistant or deputy clerk shall be eligible on and after July 1, 1984, for an annual step increase in his salary plan. Furthermore, on and after July 1, 1985, that assistant or deputy clerk shall be eligible for an increase of two steps in his salary plan, and shall remain eligible for a two-step increase each year as recommended by each clerk until that assistant or deputy clerk's annual salary corresponds to his number of years of service.  Any person covered by this subsection who would not receive a step increase in fiscal year 1992-93 because that person is at the top of the salary range as it existed for fiscal year 1990-91 shall receive a salary increase to the maximum annual salary provided for fiscal year 1992-93 by subsection (c1) of this section.
(c1)	A full-time assistant clerk or a full-time deputy clerk shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks	Annual Salary
	Minimum  		$20,712
Maximum			35,262

Deputy Clerks	Annual Salary
Minimum			$16,236
Maximum			27,162."

MAGISTRATES/SALARY INCREASE
Sec. 13.12.  G.S. 7A-171.1(a)(1) reads as rewritten:
"(1)	A full-time magistrate, so designated by the Administrative Officer of the Courts, shall be paid the annual salary indicated in the table below according to the number of years he has served as a magistrate. The salary steps shall take effect on the anniversary of the date the magistrate was originally appointed:

Table of Salaries of Full-Time Magistrates

	Number of Prior Years of Service	Annual Salary
		93
	Less than 1			$17,058
	1 or more but less than 3			17,934
	3 or more but less than 5			19,698
	5 or more but less than 7			21,642
	7 or more but less than 9			23,814
	9 or more but less than 11			26,178
	11 or more			28,758.

	   A 'Full-time magistrate' is a magistrate who is assigned to work an average of not less than 40 hours a week during his term of office.
	   Notwithstanding any other provision of this subdivision, a full-time magistrate, who was serving as a magistrate on December 31, 1978, and who was receiving an annual salary in excess of that which would ordinarily be allowed under the provisions of this subdivision, shall not have the salary, which he was receiving reduced during any subsequent term as a full-time magistrate. That magistrate's salary shall be fixed at the salary level from the table above which is nearest and higher than the latest annual salary he was receiving on December 31, 1978, and, thereafter, shall advance in accordance with the schedule in the table above."

COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES
Sec. 13.13.  The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1992-93 funds necessary to provide a salary increase of forty-three dollars and fifty cents ($43.50) per month, including funds for the employer's retirement and Social Security contributions, commencing July 1, 1992, for all permanent full-time community college institutional personnel supported by State funds.  All permanent part-time community college institutional personnel supported by State funds shall receive pro rata amounts of the forty-three dollars and fifty cents ($43.50) per month.  These funds may not be used for any purpose other than for the salary increases and necessary employer contributions provided by this section.

HIGHER EDUCATION PERSONNEL/SALARY INCREASES
Sec. 13.14.  The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1992-93 funds necessary to provide a salary increase of forty-three dollars and fifty cents ($43.50) per month, including funds for the employer's retirement and Social Security contributions commencing July 1, 1992, for each full-time employee of The University of North Carolina, as well as each full-time employee of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act; provided that the Board of Governors of The University of North Carolina may allocate the funds it receives for the salary increment for its employees in positions exempt from the State Personnel Act according to rules adopted by the Board of Governors.  All part-time employees of The University of North Carolina, as well as all part-time employees of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act shall receive a pro rata amount of the forty-three dollars and fifty cents ($43.50) per month; provided that the Board of Governors of The University of North Carolina may allocate the funds it receives for the salary increment for its employees in positions exempt from the State Personnel Act according to rules adopted by the Board of Governors.

MOST STATE EMPLOYEES/SALARY INCREASES/1992-93
Sec. 13.15.  (a)	The salaries in effect for fiscal year 1991-92 for all permanent full-time State employees whose salaries are set in accordance with the State Personnel Act and who are paid from the General Fund or the Highway Fund shall be increased, on and after July 1, 1992, unless otherwise provided by this act, by forty-three dollars and fifty cents ($43.50) per month.
(b)	Except as otherwise provided in this act, the fiscal year 1991-92 salaries for permanent full-time State officials and persons in exempt positions that are recommended by the Governor or the Governor and the Advisory Budget Commission and set by the General Assembly shall be increased by forty-three dollars and fifty cents ($43.50) per month, commencing July 1, 1992.
(c)	The salaries in effect for fiscal year 1991-92 for all permanent part-time State employees shall be increased on and after July 1, 1992, by pro rata amounts of the forty-three dollars and fifty cents ($43.50) per month, salary increase provided for permanent full-time employees covered under subsection (a) of this section.
(d)	The Director of the Budget may allocate out of special operating funds or from other sources of the employing agency, except tax revenues, sufficient funds to allow a salary increase, on and after July 1, 1992, in accordance with subsections (a), (b), or (c), including funds for the employer's retirement and Social Security contributions, for the permanent full-time and part-time employees of the agency, provided the employing agency elects to make available the necessary funds.
(e)  Within regular Executive Budget Act procedures as limited by this act, all State agencies and departments may increase on an equitable basis the rate of pay of temporary and permanent hourly State employees, subject to availability of funds in the particular agency or department, by pro rata amounts of the forty-three dollars and fifty cents ($43.50) per month salary increase provided for permanent full-time employees covered by the provisions of subsection (a) of this section, commencing July 1, 1992.
(f)  The provisions of this section do not apply to employees whose salaries are determined in accordance with G.S. 20-187.3(a), except for those employees who would not receive a salary increment for the 1992-93 fiscal year under G.S. 20-187.3(a) because they are at the top of their salary range.

CERTAIN EXECUTIVE BRANCH OFFICIALS/SALARY INCREASES
Sec. 13.16.  (a)	The annual salaries, payable monthly, for the 1992-93 fiscal year for the following executive branch officials are:
Executive Branch Officials	Annual Salary
1992-93
Chairman, Alcoholic Beverage Control
Commission	$72,930
State Controller	117,942
Commissioner of Motor Vehicles	 72,930
Commissioner of Banks	 72,930
Chairman, Employment Security
Commission	 72,930
State Personnel Director	 75,774
Chairman, Parole Commission	 66,594
Members of the Parole Commission	 61,482
Chairman, Industrial Commission	 65,526
Members of the Industrial Commission	 63,930
Executive Director, Agency for Public
Telecommunications	 61,482
General Manager, Ports Railway
Commission	 55,518
Director, Museum of Art	 74,730
Executive Director, Wildlife Resources
Commission	 62,946
Executive Director, North Carolina
Housing Finance Agency	 90,258
Executive Director, North Carolina
Agricultural Finance Authority	 70,986
Director, Office of Administrative 
Hearings	 64,386.
(b) Any person carrying on the functions of a position listed in subsection (a) of this section shall be paid only the salary set out in that subsection, and the mere classification of the position to be some other position does not allow the salary of that position to be set in some other manner.

PUBLIC SCHOOL PERSONNEL/SALARY INCREASES
Sec. 13.17.  (a)	Superintendents, Assistant Superintendents, Associate Superintendents, Supervisors, Directors, Coordinators, Evaluators, Program Administrators, Principals, and Assistant Principals.–The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1992-93 funds necessary to provide a salary increase of forty-three dollars and fifty cents ($43.50) per month, including funds for the employer's retirement and Social Security contributions, commencing July 1, 1992, 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.
(b)	Noncertified Employees.  The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1992-93 funds necessary to provide a salary increase of forty-three dollars and fifty cents ($43.50) per month, including funds for the employer's retirement and Social Security contributions, commencing July 1, 1992, for all noncertified public school employees, except school bus drivers, whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than for the salary increases and necessary employer contributions provided by this subsection.
(c)	The fiscal year 1991-92 pay rates adopted by local boards of education for school bus drivers shall be increased by at least two percent (2%), on and after July 1, 1992, to the extent that such rates of pay are supported by the allocation of State funds from the State Board of Education.  Local boards of education shall increase the rates of pay for all school bus drivers who were employed during fiscal year 1991-92 and who continue their employment for fiscal year 1992-93 by at least two percent (2%), on and after July 1, 1992.  The Director of the Budget may transfer from the salary increase reserve fund created in Section 1 of this act for fiscal year 1992-93 funds necessary to provide the salary increases for school bus drivers whose salaries are supported from the State's General Fund in accordance with the provisions of this subsection.

ALL STATE-SUPPORTED PERSONNEL/SALARY INCREASES
Sec. 13.18.  (a)	Salaries for positions that are funded partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund shall be increased from the General Fund or Highway Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund.
(b)	The granting of the salary increases under this act does not affect the status of eligibility for salary increments for which employees may be eligible unless otherwise required by this act.
(c)	The salary increases provided in this Part are to be effective July 1, 1992, do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, whose last workday is prior to July 1, 1992, or to employees involved in written disciplinary procedures.
Payroll checks issued to employees after July 1, 1992, which represent payment for services provided prior to July 1, 1992, shall not be eligible for salary increases provided for in this act.  This subsection shall apply to all employees, subject to or exempt from the State Personnel Act, paid from State funds, including public schools, community colleges, and The University of North Carolina.
(d)	Notwithstanding the provisions of Section 19.1 of Chapter 1137 of the 1979 Session Laws as amended by Chapter 1053 of the 1981 Session Laws, G.S. 115C-12(9)a., 115C-12(16), 126-7, or any other provision of law other than G.S. 20-187.3(a) and G.S. 7A-102(c),  no employee or officer of the public school system shall receive an automatic increment, and no State employee or officer shall receive a merit increment, during the 1992-93 fiscal year, except as otherwise permitted by this act.
(e)  The Director of the Budget shall transfer from the Reserve for Salary Increases created in this act for fiscal year 1992-93 all funds necessary for the salary increases provided by this act, including funds for the employer's retirement and Social Security contributions.
(f)  Nothing in this act authorizes the transfer of funds from the General Fund to the Highway Fund for salary increases.

EFFECTIVE DATES FOR SECTIONS 13.1 THROUGH 13.18
Sec. 13.19.  Sections 13.1 through 13.18 of this act become effective July 1, 1992.

Requested by:  Representative Nesbitt
SALARY INCREASE FOR STATE-FUNDED LOCAL PROGRAMS
Sec. 13.19A.  Of the funds appropriated from the General Fund for the Reserve for Salary Increases in this act for the 1992-93 fiscal year, funds shall be made available for employees in locally operated State-funded programs in an amount equivalent to a two percent (2%) across-the-board salary increase.

Requested by:  Representatives Barnes, Nesbitt
RESERVE FOR LOWEST PAID EMPLOYEES
Sec. 13.20.  Notwithstanding any other provisions of the current law, the Office of State Budget and Management is authorized to transfer funds that are certified as performance pay reserves in the 1992-93 budget and are not required to continue support of performance pay allocations authorized in fiscal year 1990-91 to a Reserve for Lowest Paid Employees for the purpose of providing salary increases to the lowest paid State employees pursuant to Section 37 of Chapter 1066 of the 1989 Session Laws.  When all agencies except Special Responsibility Constituent Institutions in the University of North Carolina System have received sufficient funds from the Reserve for Lowest Paid Employees in order to fully implement Section 37 of Chapter 1066 of the 1989 Session Laws, the remaining funds in that Reserve shall be available to Special Responsibility Constituent Institutions in the University of North Carolina System to implement that Section.  If such funds are insufficient for Special Responsibility Constituent Institutions in the University of North Carolina System to fully implement that section, they shall use funds otherwise available to fully implement that section.

Requested by:  Representatives Barnes, Nesbitt
REDUCE AGENCY SALARIES/RETIRED POSITIONS
Sec. 13.21.  For the 1992-93 fiscal year, the Office of State Budget and Management shall establish rules and procedures which require agencies to transfer salary and benefit funds equivalent to thirty percent (30%) of the State supported salary and fringe benefits of positions from which a retirement occurs to the Reserve for Salary Reduction-Positions Vacated by Retirees as created in this act.  This provision does not apply to positions paid from the Public School Fund, community college State aid funds, positions of employees whose salaries are specified by statute, or exceptions granted by the Director of the Budget due to agency hardships.  Employees eligible for retirement shall not be transferred to non-State supported positions prior to retirement for the purpose of circumventing this provision.  No position impacted by this provision shall be reduced below the minimum salary level established by law unless the position is abolished.
The Office of State Budget and Management shall provide to the 1993 General Assembly a report by May 15, 1993, detailing, by agency and position, the savings implemented under this provision in order that these amounts may be deleted from the 1993-95 authorized budget.

PART 11.  PUBLIC SCHOOLS

Requested by:  Representative H. Hunter
CONTINUE MODEL TEACHER EDUCATION CONSORTIUM
Sec. 14.  (a) Section 36.1 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 36.1.  Of the funds appropriated to the Department of Public Education for the 1991-92 fiscal year and for the 1992-93 fiscal year for aid to local school administrative units, the State Board of Education shall use one hundred fifty thousand dollars ($150,000) for the 1991-92 fiscal year and one hundred seventy thousand dollars ($170,000) for the 1992-93 fiscal year for the model teacher education consortium established in Section 72 of Chapter 752 of the 1989 Session Laws.  Of these funds, up to thirty thousand dollars ($30,000) for the 1991-92 fiscal year and up to fifty thousand dollars ($50,000) for the 1992-93 fiscal year may be used for administrative purposes."
(b) It is the intent of the General Assembly to put funds for the model teacher education consortium in the continuation budget for the 1993-95 fiscal biennium.
(c) Section 72(a) of Chapter 752 of the 1989 Session Laws reads as rewritten:
"(a)	There is established a model teacher education consortium for the following local school administrative units:  Gates County, Granville County, Halifax County, Hertford County, Northampton County, Vance County, Warren County, Roanoke Rapids City and Weldon City, with the collaboration of East Carolina University, Elizabeth City State University, Barton College, North Carolina Wesleyan College, Halifax Community College, and Vance-Granville Community College."

Requested by:  Representatives Fussell, Payne
REALLOCATION OF CERTAIN FUNDS FOR EXCEPTIONAL CHILDREN
Sec. 15.  The State Board of Education may reallocate (i) funds that are repayments from local school administrative units as a result of audit exceptions of exceptional children headcounts and student records, (ii) any prior year's refunds of exceptional children funds to the public school fund, and (iii) any penalties assessed on those funds.  The funds shall be available for reallocation by the State Board and for expenditure by the local school administrative units for the remainder of the fiscal year in which they are collected and for the subsequent fiscal year.  The funds shall be allocated by the State Board in accordance with policies adopted by the State Board for the exceptional children's program.

Requested by:  Representatives Fussell, Payne
OUTCOME-BASED EDUCATION FUNDS
Sec. 16.  (a)	Section 199(b) of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(b)	Of the funds appropriated to the Department of Public Education, the sum of one hundred thousand dollars ($100,000) for the 1991-92 fiscal year shall be used for advance planning for the outcome-based education program at pilot sites pursuant to subsection (a) of this section and the sum of three million dollars ($3,000,000) for the 1992-93 fiscal year shall be used to implement the program at the pilot sites.  Of the funds appropriated for the 1992-93 fiscal year, the sum of one hundred thousand dollars ($100,000) shall be used by the Department of Public Instruction to provide technical assistance, evaluate programs, refine proficiencies and outcomes, and otherwise implement the program; the remainder of these funds shall be allocated first on the basis of five hundred dollars ($500.00) for each State-funded certificated employee participating in the program and then on a pro rata basis based on the number of State-funded certificated employees. These funds shall be used (i) for staff development activities, including planning activities, for teachers, administrators, and school board members, (ii) to pay substitute teachers while teachers are engaged in staff development activities, (iii) to pay 10-month employees for participating in staff development activities, including planning activities during the summer, and (iv) to allow the pilots to use funds for specific other purposes such as evaluation, dissemination of information, and implementation of proficiencies.
It is the intent of the General Assembly to appropriate an additional three million dollars ($3,000,000) each year for the 1993-94 through 1996-97 fiscal years to complete the implementation of the outcome-based education program at the six sites."
(b)	G.S. 115C-238.13(a) reads as rewritten:
"(a)	The State Board of Education shall develop and implement an outcome-based education program. The State Board of Education shall select six sites, at least one of which shall be a consortium, to participate in the program for five fiscal years beginning with the 1992-93 fiscal year.  The first year of the project shall be a year for the sites to plan their projects.  The remaining four years shall be to implement the projects and to demonstrate their effectiveness."

Requested by:  Representatives Fussell, Payne
EARLY CHILDHOOD EDUCATION COORDINATOR FUNDS
Sec. 17.  The Department of Public Instruction may use up to seventy-five thousand dollars ($75,000) of the funds appropriated to the Department of Public Education for aid to local school administrative units for the 1992-93 fiscal year for an early childhood education coordinator.  The early childhood education coordinator shall provide technical assistance to local school administrative units in offering appropriate services for children pre-kindergarten through grade five.

Requested by:  Representatives Fussell, Payne, Rogers
LOW PERFORMING UNITS
Sec. 18.  (a) If a local school administrative unit is identified as a low performing school system or placed on warning status by the State Board of Education in accordance with G.S. 115C-64.1, the Department of Public Instruction may use up to one million two hundred thousand dollars ($1,200,000) of the funds appropriated for aid to local school administrative units to provide the local school administrative unit with staff development activities and technical assistance to enable the unit to improve student performance and decrease dropout rates.
(b) If a local school administrative unit is identified as a low performing school system by the State Board of Education in accordance with G.S. 115C-64.1, and that local school administrative unit receives small school system supplemental funding, low-wealth counties supplemental funding, or both, the local school administrative unit shall use those funds to implement the plan for improving student performance and decreasing dropout rates that it submitted to the State Board of Education in accordance with G.S. 115C-64.2(a).
If a local school administrative unit is placed on warning status by the State Board of Education, and that local school administrative unit receives small school system supplemental funding, low-wealth counties supplemental funding, or both, the local school administrative unit shall use those funds to implement a locally developed plan for improving student performance and decreasing dropout rates.
(c)	The Board of Governors of The University of North Carolina shall require the Offices of School Services at the constituent institutions to provide in-kind technical assistance worth at least six hundred thousand dollars ($600,000) through the Department of Public Instruction to local school administrative units that are identified as low performing school systems or placed on warning status by the State Board of Education in accordance with G.S. 115C-64.1.

Requested by:  Representatives Fussell, Payne
PROSPECTIVE TEACHER SCHOLARSHIP LOAN FUNDS
Sec. 19.  Of the funds appropriated to the Department of Public Education for the 1992-93 fiscal year for prospective teacher scholarship loans, the Superintendent of Public Instruction may designate up to two hundred thousand dollars ($200,000) for the 1992-93 fiscal year scholarship loans to teacher assistants enrolled in accredited teacher education programs.

Requested by:  Representatives Fussell, Payne
PUPIL TRANSPORTATION FUNDS
Sec. 20.  The Department of Public Instruction shall implement the Pupil Transportation Program Improvements Implementation Projects authorized by Section 55 of Chapter 752 of the 1989 Session Laws.  The Department of Public Instruction may use up to five hundred thousand dollars ($500,000) of the funds appropriated for the 1992-93 fiscal year for aid to local school administrative units for pupil transportation to assist local school administrative units with (i) unique difficulties implementing the new funding formula or (ii) efforts to improve efficiency of pupil transportation operations.
The Department shall report to the appropriations committees of the Senate and the House of Representatives and to the Fiscal Research Division in December of 1992 on the implementation of the projects specified in this section.

Requested by:  Representatives Fussell, Payne
STAFF DEVELOPMENT FUND AVAILABILITY
Sec. 21.  (a)	Funds allocated by the State Board of Education for staff development at the local level for the 1991-92 fiscal year shall remain available for expenditure until August 31, 1992.
(b)	Funds allocated by the State Board of Education for staff development at the local level for the 1992-93 fiscal year shall become available for expenditure July 1, 1992, and shall remain available for expenditure until August 31, 1993.
(c) Effective July 1, 1993, Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-417.  Availability of funds allocated for staff development.
Funds allocated by the State Board of Education for staff development at the local level shall become available for expenditure on September 1 of each fiscal year and shall remain available for expenditure until August 31 of the subsequent fiscal year."

Requested by:  Representatives Fussell, Payne
NORTH CAROLINA CLOSE UP FUNDS
Sec. 22.  The Department of Public Instruction may use up to fifteen thousand dollars ($15,000) of the funds within its budget for the 1992-93 fiscal year for the North Carolina Close Up Program to enable the program to promote citizenship education.

Requested by:  Representatives Fussell, Payne
APPROPRIATION OF FUNDS FROM STATE LITERARY FUND
Sec. 23.  There is appropriated from the State Literary Fund to the Department of Public Education the sum of one million dollars ($1,000,000) for the 1992-93 fiscal year for aid to local school administrative units.

Requested by:  Representatives Fussell, Payne, Rogers
LOW-WEALTH SCHOOL SUPPLEMENTAL FUNDING
Sec. 24.  (a)	Of the funds appropriated to the Department of Public Education, the sum of three million dollars ($3,000,000) for the 1992-93 fiscal year shall be used to provide supplemental funds in low-wealth counties to allow those counties to enhance the instructional program and student achievement.  These funds are in addition to the sum of six million dollars ($6,000,000) allocated for this purpose in Section 201.2 of Chapter 689 of the 1991 Session Laws, as rewritten by Section 47.3 of Chapter 761 of the 1991 Session Laws, and shall be expended in accordance with that section.
(b) Section 201.2(b) of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(b)	Funds received pursuant to this section shall be used only to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, instructional supplies and equipment, staff development, and textbooks."

Requested by:  Representative Nesbitt
MODIFICATIONS TO APPROPRIATIONS TO THE DEPARTMENT OF PUBLIC EDUCATION FOR THE 1992-93 FISCAL YEAR
Sec. 24.1.  Effective July 1, 1992, Section 8.1(f) of this act reads as rewritten:
"(f)	Of the funds appropriated to the Department of Public Education for the 1991-93 fiscal biennium, the funds for the operation and maintenance of the Department of Public Instruction, for State aid to nonstate agencies, and for the operation of the State Board of Education are as follows:
DEPARTMENT OF PUBLIC EDUCATION
TOTAL REQUIREMENTS

1991-92

Department of	Aid to Local	State Board
FUND	Public Instruction	School Administrative	of Education
	Units

1000	2,276,885	–  	118,900
1100	11,594,516	–  	    –
1200	 2,542,623	–  	    –
1300	 4,370,254	–  	    –
1400	12,551,101	–  	 16,146
1500	 2,927,256	–  	    –
1600	11,386,980	–  	 17,668
1700        	    –    	–  	  –
1800	    –    	3,199,427,158	    –
1900	  491,734	–  	    –

TOTAL	48,141,349	3,199,427,158	152,714

1992-93

Department of	Aid to Local	State Board
FUND	Public Instruction	School Administrative	of Education
	Units

1000	 2,271,969	–   	 93,900
1100	11,578,464	–   	–
1200	 2,543,364	–   	    –
1300	 4,326,584	–   	    –
1400	12,826,595	–   	 16,146
1500	 10,515,339	–   	    –
1600	11,281,018	–   	 17,668
1700	    –    	–   	    –
1800	    –    	3,250,680,746	    –
1900	   491,734	–   	    –

TOTAL	55,835,067	3,250,680,746	127,714".

Requested by:   Representatives Diamont, Nesbitt, Barnes
DIFFERENTIATED PAY
Sec. 24.2.  (a)	Of the funds appropriated to the Department of Public Education, Aid to Local School Administrative Units, for the 1992-93 fiscal year, the sum of twenty-nine million five hundred thousand dollars ($29,500,000) shall be used for differentiated pay for public school employees.
(b)	Each local school administrative unit that voted in accordance with Section 194 of Chapter 689 of the 1991 Session Laws to continue or modify, in accordance with the School Improvement and Accountability Act of 1989, its existing differentiated pay plan shall receive 2% of its State-paid teachers' and administrators' salaries, and the employer's contribution for social security and retirement.  These funds shall be spent in accordance with the differentiated pay plan in effect for the unit.
(c)	Each local school administrative unit that voted in accordance with Section 194 of Chapter 689 of the 1991 Session Laws for across-the-board bonuses for all affected employees shall receive 1 and 3/4 % of its State-paid teachers' and administrators' salaries, and the employer's contribution for social security and retirement.  
Within 30 days of the first teacher workday of the 1992-93 school calendar, each local board of education shall review and reassess the differentiated pay plan that was in effect for the unit for the 1990-91 school year and shall determine whether the plan should be reinstated, reinstated with modifications, or replaced with a different plan.  Within 60 days of the first teacher workday of the 1992-93 school year, the local board shall present to affected employees for their review and vote a differentiated pay plan for the 1992-93 school year only.  The proposed differentiated pay plan shall take effect on or after November 1, 1992.  The proposed differentiated pay plan may be a continuation or modification of the plan for the 1990-91 school year that was adopted in accordance with the School Improvement and Accountability Act of 1989 or it may be a new differentiated pay plan developed in accordance with the School Improvement and Accountability Act of 1989.  The proposed differentiated pay plan shall not be a  proposal for across-the-board bonuses for all affected employees. 
The vote shall be by secret ballot.  All of the certificated instructional staff members, instructional support staff members, and certificated administrators who are eligible to receive funds for differentiated pay under the School Improvement and Accountability Act of 1989 may vote.  The local board shall immediately submit the option that receives a majority of all the votes cast to the Superintendent of Public Instruction for his approval.  A differentiated pay plan shall become effective upon the approval of the Superintendent.
(d)	All local school administrative units, including career ladder pilot units, shall adopt new differentiated pay plans for the 1993-94 school year, in accordance with the School Improvement and Accountability Act of 1989.
(e)  Subsections (a) through (c) of this section do not apply to any funds appropriated for the career ladder pilot units.
With regard to a local school administrative unit that resulted from the merger of a career ladder pilot unit and another unit, subsections (a) through (c) of this section shall apply only to funds received under this section to administer the School Improvement and Accountability Act of 1989.

Requested by:   Representatives Nesbitt, Diamont, Barnes
TEACHER SALARY SCHEDULE
Sec. 24.3.  (a)	The Director of the Budget may transfer from the Reserve for Teacher Salary Increases for the 1992-93 fiscal year funds necessary to implement the teacher salary schedule set out in subsection (b) of this section, including funds for the employer's retirement and social security contributions and funds for annual longevity payments at one and one-quarter percent (1.25%) of base salary for 15 to 19 years of State service, one and three-quarters percent (1.75%) of base salary for 20 to 24 years of State service, and two and one-half percent (2.5%) of base salary only upon the completion of 25 years of State service, commencing July 1, 1992, for all teachers whose salaries are supported from the State's General Fund.  These funds shall be allocated to individuals according to rules adopted by the State Board of Education and the Superintendent of Public Instruction.
(b)(1)	Beginning July 1, 1992, the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "A"teachers.  The schedule contains 30 steps with each step corresponding to one year of teaching experience.
Years of	1992-93
Experience	Salary

00	$1,982
01	2,022
02	2,062
03	2,103
04	2,145
05	2,188
06	2,232
07	2,277
08	2,323
09	2,369
10	2,416
11	2,464
12	2,513
13	2,563
14	2,614
15	2,666
16	2,719
17	2,773
18	2,828
19	2,885
20	2,943
21	3,002
22	3,062
23	3,123
24	3,185
25	3,249
26	3,314
27	3,380
28	3,448
29+	3,517
(2)	Beginning July 1, 1992, the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "G"teachers.  The schedule contains 30 steps with each step corresponding to one year of teaching experience.
Years of	1992-93
Experience	Salary

00	$2,106
01	2,148
02	2,191
03	2,235
04	2,280
05	2,326
06	2,373
07	2,420
08	2,468
09	2,517
10	2,567
11	2,618
12	2,670
13	2,723
14	2,777
15	2,833
16	2,890
17	2,948
18	3,007
19	3,067
20	3,128
21	3,191
22	3,255
23	3,320
24	3,386
25	3,454
26	3,523
27	3,593
28	3,665
29+	3,738
(3)	The rules adopted by the State Board for allocating funds to individuals shall provide for (i) a seven and one-half percent (7.5%) salary increase for teachers with certification based on academic preparation at the six-year degree level; (ii) a ten percent (10%) salary increase for teachers with certification based on academic preparation at the doctoral degree level; and (iii) annual longevity payments at one and one-quarter percent (1.25%) of base salary for 15 to 19 years of State service, one and three-quarters percent (1.75%) of base salary for 20 to 24 years of State service, and two and one-half percent (2.5%) of base salary only upon the completion of 25 years of State service.
(c)	The General Assembly finds that it is necessary to have a teacher salary schedule based on years of teaching experience that applies consistently to all teachers throughout the State; therefore, notwithstanding any other provision of law, the salary schedule set out in this section shall apply to all public school teachers within the State and no teacher in any local school administrative unit shall be entitled to a State salary or a State salary and bonus, except as provided in a local differentiated pay plan, in excess of the amount set out in this section.

PART 12.  COMMUNITY COLLEGES

Requested by:  Representatives Fussell, Payne
HUSKINS BILL QUALITY CONTROL
Sec. 25.  (a) Community college contracts with local school administrative units shall not be used by these agencies to supplant funding for a public school high school teacher providing courses offered pursuant to G.S. 115D-20(4) who is already employed by the local school administrative unit.  However, if a community college contracts with a local school administrative unit for a public high school teacher to teach a college level course, the community college shall not generate budget FTE for that course.  Its reimbursement in this case shall be limited to the direct instructional costs contained in the contract, plus fifteen percent (15%) for administrative costs.  In no event shall a community college contract with a local school administrative unit to provide high school level courses.
(b) The Joint Committee on College Transfer shall review this issue as it relates to community colleges and constituent institutions of The University of North Carolina.   This review shall include an assessment of what constitutes college level course work.  The Committee shall report the results of this review to the General Assembly and to the Joint Legislative Education Oversight Committee by March 1, 1993.
(c) The State Board of Community Colleges shall study the entire Huskins Bill issue.  The Board shall report the results of its study, together with any recommendations, including any legislative proposals, to the General Assembly by March 1, 1993.
(d) This section shall remain in effect until changed by the General Assembly.

Requested by:  Representatives Fussell, Payne
COMMUNITY COLLEGES/UNC DISADVANTAGED NURSING FUNDS
Sec. 26.  The eighty thousand dollars ($80,000) appropriated to the Department of Community Colleges and the twenty thousand dollars ($20,000) appropriated to the Board of Governors of The University of North Carolina for the 1992-93 fiscal year for the purpose of increasing the number of disadvantaged students who successfully complete nursing school shall be used for additional academic support services for these students, including services providing tutors, peer counseling, and testing materials.  These funds shall not be used to provide direct financial aid for these students.

Requested by:  Representatives Fussell, Payne
IN-PLANT TRAINING/SHELTERED WORKSHOPS
Sec. 27.  (a) In-Plant Training.  Effective beginning with the 1992 fall quarter, the State Board of Community Colleges shall ensure that the following requirements are met with respect to in-plant training established pursuant to G.S. 115D-5(d)*:
(1)	The instruction provided shall not duplicate or supplant existing training or training for normal job turnover;
(2)	The community college shall not contract with a company to provide in-plant training to its own employees but it may contract with such a company to provide the cost of replacement of an employee who is providing the actual training and is released from regular work responsibilities.  Reimbursement may also be provided for appropriate supplies and materials, as determined by the State Board of Community Colleges;
(3)	The community college's course outline and a fiscal plan for operating the course shall be approved by the board of trustees.  If approval is not given, the course shall be discontinued and no FTE shall be generated for that course;
(4)	A reasonable limitation on hours per employee shall be established; and
(5)	A community college's FTE earnings shall not exceed a reasonable percentage of the direct cost of the training.
The State Board of Community Colleges shall conduct a comprehensive review of in-plant training to clarify the role of the system as well as the general policies and procedures that have been developed to provide instruction for business and industry.  The Board shall report the results of its study, together with any recommendations, including any legislative proposals, to the General Assembly by March 1, 1993.
(b)	Sheltered Workshops.  Effective beginning with the 1992 fall quarter, the State Board of Community Colleges shall ensure that the following considerations are addressed within the administration of the occupational extension courses offered in sheltered workshop settings and established pursuant to G.S. 115D-5(c)*:
(1)	A reasonable limitation on instructional hours per student shall be established;
(2)	An educational and fiscal plan shall be approved by the board of trustees.  If approval is not given, the course shall be discontinued and no FTE shall be generated for that course;
(3)	There shall be a policy prohibiting the duplication of training and the supplanting of costs; and
(4)	A community college's FTE earnings shall not exceed a reasonable percentage of the direct cost of the training.
The State Board of Community Colleges shall conduct a comprehensive review of training provided to sheltered workshops and Adult Developmental Activities Program (ADAP) centers to clarify the role of the system as well as the general policies and procedures that have been developed to provide instruction at these locations.  The Board shall report the results of its study, together with any recommendations, including any legislative proposals, to the General Assembly by March 1, 1993.
(c) Effective July 1, 1993, the funding for community college occupational extension training for sheltered workshops and in-plant training programs shall be limited to direct instructional cost plus fifteen percent (15%) of that amount for administrative costs, unless amended by the 1993 General Assembly after receiving recommendations from the State Board of Community Colleges.

Requested by:  Representatives Fussell, Payne
NEW AND EXPANDING INDUSTRY PROGRAM FUNDS
Sec. 28.  Notwithstanding any law to the contrary, the Department of Community Colleges may transfer available and uncommitted funds into the New and Expanded Industry Program, if it determines that there is a need to meet additional training needs over and above those currently budgeted and if the Director of the Budget concurs.

Requested by:  Representatives Fussell, Payne
COMMUNITY COLLEGE TUITION INCREASE
Sec. 29.  Section 203 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 203.  The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1991 in the amount of eleven dollars and fifty cents ($11.50) per credit hour up to a cap of 14 credit hours for in-State students and one hundred seven dollars and fifty cents ($107.50) per credit hour with a cap of 14 hours for out-of-State students.  The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1992 in the amount of twelve dollars and seventy-five cents ($12.75) per credit hour up to a cap of 14 credit hours for in-State students and one hundred seven dollars and fifty cents ($107.50) per credit hour with a cap of 14 hours for out-of-State students.
The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1991 in the amount of thirty dollars ($30.00) per course for occupational extension courses.  The State Board of Community Colleges shall adopt tuition rates beginning in the fall quarter of 1992 in the amount of thirty-three dollars ($33.00) per course for occupational extension courses."

Requested by:  Representatives Fussell, Payne
WORKER TRAINING TRUST FUND
Sec. 30.  Section 141 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 141.  (a)	There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of five million four hundred fifty-nine thousand six hundred seventy-three dollars ($5,459,673) for the 1991-92 fiscal year and the sum of five million eight hundred thirty-nine thousand nine hundred sixty-four dollars ($5,839,964) for the 1992-93 fiscal year for the operation of local offices at the 1986-87 level of service.
(b)	Notwithstanding G.S. 96-5(c), there is appropriated from the Special Employment Security Administration Fund to the Employment Security Commission of North Carolina, the sum of two million dollars ($2,000,000) for the 1991-92 fiscal year and the sum of two million dollars ($2,000,000) for the 1992-93 fiscal year for administration of the Veterans Employment Program, Employment Services Program, and Unemployment Insurance Program.
(c)	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.
(d)	Notwithstanding the provisions of G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the following agencies the following sums for the 1991-92 and the 1992-93 fiscal years for the following purposes:
(1)	$3,000,000 for the 1991-92 fiscal year and $2,400,000 for the 1992-93 fiscal year to the  Department of Economic and Community Development, Division of Employment and Training, for the Employment and Training Grant Program.
(2)	$500,000 for the 1991-92 fiscal year and $1,000,000 for the 1992-93 fiscal year to the North Carolina Department of Labor for customized training of the unemployed and the working poor for specific jobs needed by employers through the Department's Pre-Apprenticeship Division.
(3)	$2,000,000 for the 1991-92 fiscal year and $2,489,036 for the 1992-93 fiscal year to the North Carolina Department of Human Resources to assist welfare recipients in gaining employment through the federally funded Job Opportunities and Basic Skills Program in such a way as to gain the maximum match of federal funds for the State dollars appropriated, provided that the $489,036 in expansion funds for the 1992-93 fiscal year shall be used for computer equipment for every county participating in the Job Opportunities and Basic Skills Program.
(4)	$1,250,000 for the 1991-92 fiscal year and $1,746,000 for the 1992-93 fiscal year to the North Carolina Department of Community Colleges to continue the Focused Industrial Training Program, provided that the $496,000 in expansion funds for the 1992-93 fiscal year shall be used to increase the annual funding for the 31 existing FIT centers from an average of $74,000 to an average of $90,000.
(5)	$150,000 for the 1992-93 fiscal year to the Department of Public Education and $150,000 for the 1992-93 fiscal year to the Department of Community Colleges, for a program of training in entrepreneurial skills to be operated by North Carolina REAL Enterprises.
(6)	$225,000 for the 1992-93 fiscal year to the Employment Security Commission for the North Carolina Occupational Information Coordinating Committee to develop and operate an interagency system to track former participants in State education and training programs."

PART 13.  DEPARTMENT OF TRANSPORTATION

Requested by:  Representative McLaughlin
DEPARTMENT OF TRANSPORTATION EXEMPTION FROM GENERAL STATUTES FOR EXPERIMENTAL PROJECT–CONGESTION MANAGEMENT
Sec. 31.  The Department of Transportation may enter into a design-build-warrant contract to develop, with Federal Highway Administration participation under the Intermodal Surface Transportation Efficiency Act of 1991, Title VI, Part B, Sections 6051-6059, a "Congestion Avoidance and Reduction for Autos and Trucks (CARAT)" system of traffic management for the greater Charlotte-Mecklenburg urban areas.  The contracts may be entered into without regard to the Occupational Licensing Laws and for the purpose of entering into the contracts, the Department of Transportation is exempted from the provisions of the following General Statutes:   G.S. 136-28.1, 143-52, 143-53, 143-58, 143-64.20, 143-128, and 143-129.

Requested by:  Representatives McLaughlin, Holt
INCREASE ADMINISTRATIVE EFFICIENCY/DOT
Sec. 32.  (a)	The maximum number of positions authorized for the Office of the Secretary of Transportation, Fund Code 84210-0190, for the 1992-93 fiscal year are as follows:

Category of Positions	Number of Positions

Secretary of Transportation	1
Administrative Assistant III	1
Administrative Assistant II	1
Executive Secretary	4
Special Assistant to the Secretary	1
Deputy Secretary	2
Federal Programs Coordinator	1
Special Assistant for Operations	1
Public Information Assistant V	1
Assistant Secretary for External Affairs	1
Clerk Typist IV	1
Receptionist III	1
Information and Communication Specialist	1
Agency General Counsel II	1
Director of Citizens Affairs	1
Director of Safety and Loss Control	1
APA Coordinator	1
(b)	The following positions are abolished and shall not be continued or reestablished for the Office of the Secretary of Transportation for the 1992-93 fiscal year:

Category of Positions	Number of Positions

Special Assistant for Regional
Affairs	3
Secretary IV	3
The General Assembly has examined the administrative structure and the operations of the Office of the Secretary and finds that the positions abolished by this subsection constitute an unnecessary level of administrative function in the Secretary's Office, that this level of administrative function actually impedes the ability of other administrators in the department to act expeditiously, and that the duties assigned to these employees duplicate the duties of other administrative and professional employees of the Department.

Requested by:  Representatives McLaughlin, Holt
HIGHWAY MAINTENANCE RESERVE
Sec. 33.  Section 66.7 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 66.7.  Any unreserved credit balance in the Highway Fund on June 30 of each of the fiscal years of this biennium 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 roads, a reserve for unforeseen happening of a state of affairs requiring prompt action as provided by G.S. 136-44.1, and other required reserves.  Actual revenue in excess of estimated revenue shall be placed in the reserve for highway maintenance.  The Board of Transportation shall report monthly to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division about the use of the reserve for highway maintenance."

Requested by:  Representatives McLaughlin, Holt
DIVISION OF MOTOR VEHICLES DRIVERS LICENSE COMPUTER
Sec. 34.  The Division of Motor Vehicles shall procure information technology and data communications equipment for the drivers license computer system only after fair and competitive bidding and without any waiver from competitive bidding.  Any request for bids, request for proposals, or request for quotes issued concerning the procurement of information systems hardware and software, document imaging systems, or data communications hardware related to any aspect of the drivers license computer system shall contain only specifications based on industry standards for open systems to the greatest extent possible.  To the degree that open systems specifications are not used in a procurement related to any aspect of a drivers license computer system, the Division of Motor Vehicles shall provide documentation to the Information Technology Commission and to the Joint Legislative Commission on Governmental Operations explaining why the competitive bid specifications could not conform to industry standards for open systems.

Requested by:  Representatives McLaughlin, Hasty
CONTRACT RESURFACING REPORTING REQUIREMENT
Sec. 35.  The Department of Transportation shall report, quarterly, to the Joint Legislative Highway Oversight Committee concerning any transfers of funds from the Contract Resurfacing Program during the preceding quarter.  The Department shall report, annually, to the Joint Legislative Highway Oversight Committee on any additional life-cycle costs for delayed projects that may accrue as a result of these transfers, with the first report to be filed March 1, 1993.

Requested by:  Representatives Bowie, McAllister
DEPARTMENT OF TRANSPORTATION HIGHWAY CONSTRUCTION SAFETY PROGRAM
Sec. 37.  From funds appropriated to the Department of Transportation, the Secretary of Transportation may continue the Department's emphasis on safety to reduce accidents and injuries in highway construction activities.

Requested by:  Representative R. Hunter
SECONDARY ROADS, ANNUAL WORK PROGRAM PRIORITY LISTS
Sec. 38.  G.S. 136-44.7(b) reads as rewritten:
"(b)	When a secondary road in a county is listed in the first 10 secondary roads to be paved during a year on a priority list issued by the Department of Transportation under this section, the secondary road cannot be removed from the top 10 of that list or any subsequent list until it is paved.  All secondary roads in a county shall be paved, insofar as possible, in the priority order of the list.  When a secondary road in the top 10 of that list is removed from the list because it has been paved, the next secondary road on the priority list shall be moved up to the top 10 of that list and shall remain there until it is paved."

Requested by:  Representative Albertson
DEPARTMENT OF TRANSPORTATION PERMANENT HOURLY WORKERS/OFFICE OF STATE PERSONNEL STUDY
Sec. 39.  The Office of State Personnel shall study the use of permanent hourly workers by the Department of Transportation.  
The study shall include consideration of:
(1)	The Department of Transportation's use of these positions in the maintenance workforce;
(2)	The use of these positions on a year-round basis and for extended periods; and
(3)	The voluntary conversion of permanent employees to permanent hourly workers to increase the employee's take-home pay by eliminating the contribution to the retirement system.
The Office of State Personnel shall report the results of this study to the Permanent Subcommittee on Transportation of the House Committee on Appropriations by February 1, 1993.

Requested by:  Representatives McLaughlin, Holt
REALLOCATION OF DIVISION OF MOTOR VEHICLES WAREHOUSE-OFFICE BUILDING FUNDS
Sec. 40.  Funds appropriated in Section 6 of Chapter 754 of the 1989 Session Laws for the construction of a warehouse-office building in Raleigh for the Division of Motor Vehicles are reallocated to the Division of Motor Vehicles for the construction or purchase of the land and warehouse-office building, including appraisal and other costs incidental to the purchase.

Requested by:  Representatives McLaughlin, Holt
TRANSFER OF FUNDS FROM THE EQUIPMENT FUND
Sec. 41.  Section 66 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 66.  The Department of Transportation's Equipment Fund shall pay to the Highway Fund $5,000,000 for the 1991-92 fiscal year and $5,000,000 for the 1992-93 fiscal year.  These funds shall be used for highway maintenance.  The Department of Transportation's Equipment Fund shall pay to the Highway Fund an additional $7,354,254 for the 1992-93 fiscal year for use in the expansion budget."

Requested by:  Representatives McLaughlin, Holt
SMALL URBAN CONSTRUCTION FUNDS
Sec. 42.  Section 66.6 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 66.6.  Of the funds appropriated in this Title to the Department of Transportation, $10,805,664 shall be allocated in the 1991-92 fiscal year and $9,028,266 in the 1992-93 fiscal year for small urban construction projects.  $7,000,000 of these funds shall be allocated equally in fiscal year 1991-92 and $6,000,000 in fiscal year 1992-93 among the 14 Highway Divisions for the small Urban Construction program for small urban construction projects that are located within the area covered by a one-mile radius of the municipal corporate limits.  Of the remaining funds, $3,805,664 for the 1991-92 fiscal year and $3,028,266 for the 1992-93 fiscal year shall be used statewide for rural or small urban highway improvements as approved by the Secretary of the Department of Transportation.
None of these funds used for rural secondary road construction are subject to the county allocation formula as provided in G.S. 136-44.5.
The Department of Transportation shall report to the members of the General Assembly on projects funded pursuant to this section in each member's district prior to the Board of Transportation's action.  The Department shall make a quarterly comprehensive report on the use of these funds to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division."
Requested by:   Representatives Colton, McLaughlin, Holt
DEPARTMENT OF TRANSPORTATION TO REPORT ON EFFORTS TO EDUCATE ON TRANSPORTATION PLANNING ROLES
Sec. 42.1.  The Department of Transportation shall report on its efforts to educate Transportation Advisory Committees, local governments, and the public about their roles in transportation planning under the Intermodal Surface Transportation Efficiency Act of 1991 to the Chairmen of the Senate Committee on Transportation and the House Committee on Transportation by February 1, 1993.

Requested by:   Representatives Colton, McLaughlin, Holt
DEPARTMENT OF TRANSPORTATION TO DEVELOP COMPREHENSIVE PLAN ON MAINTAINING AND UPGRADING BRIDGES
Sec. 42.2.  The Department of Transportation shall develop and recommend a comprehensive plan to maintain and upgrade substandard bridges in North Carolina and shall report to the Chairmen of the Senate Committee on Transportation and the House Committee on Transportation by February 1, 1993.

Requested by:  Representative Chapin
HIGHWAY 264 REST AREA
Sec. 42.3.  By December 1, 1992, the Department of Transportation shall let a contract for work to begin on the rest area on U.S. Highway 264 in Beaufort County for which funds were appropriated by Section 6(15) of Chapter 754 of the 1989 Session Laws.  The Department shall complete the rest area by June 1, 1993.  If the Department of Transportation has not let a contract for work to begin on the rest area by December 1, 1992, the following applies:
(1)	The sum of three hundred thirty-five thousand one hundred dollars ($335,100) is appropriated from the Highway Fund to the Department of Administration for the Department of Administration to construct a rest area at U.S. Highway 264 in Beaufort County.  The Department of Administration shall complete the rest area by September 1, 1993.
(2)	Section 6(15) of Chapter 754 of the 1989 Session Laws is repealed.
PART 14.  DEPARTMENT OF CORRECTION

Requested by:  Representatives Redwine, Anderson
USE OF LAPSED SALARY FUNDS
Sec. 43.  The Department of Correction may use lapsed salary funds from the 1991-92 fiscal year to pay medical care costs, to pay for extradition services, and to reimburse local governments for the housing of prisoners.

Requested by:  Representative Barnes
PRIVATE CONFINEMENT FACILITIES
Sec. 44.  Section 67 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 67.  No for-profit, privately owned or operated confinement facilities may be added to the State prison system unless approved by the General Assembly.  Notwithstanding the provisions of this section or any other provision of law, the Secretary of Correction may issue a Request for Proposal or employ another appropriate bidding process or procedure to determine contract terms or conditions under which private for-profit or nonprofit firms would offer to provide and operate treatment centers totaling 500 beds for prisoners committed to the custody of the Department of Correction who are diagnosed as needing treatment for alcohol or drug abuse. The State may contract with private, nonprofit firms to provide or operate work and study release centers for women and for youth.
Solicitation of bids does not obligate the State to enter into contracts with private for-profit or nonprofit firms to provide and operate treatment centers for which bids are solicited.
The Secretary of Correction must report the results of the bidding procedure to the Governor, the Joint Legislative Committee on Governmental Operations, the Chairmen of the Senate and House Appropriations Committees, and the Fiscal Research Division by December 31, 1992."

PART 15.  JUDICIAL DEPARTMENT

Requested by:  Representatives Redwine, Anderson 
CURRENT OPERATING EXPENSES
Sec. 45.  From the funds appropriated to the Judicial Department in the certified budget for the 1992-93 fiscal year, the Administrative Office of the Courts may transfer within its budget up to two million five hundred thousand dollars ($2,500,000) to meet additional operating expenses for supplies and materials, current obligations, fixed charges and other expenses, equipment, books, and indigent persons' attorneys' fees, and to match any grants awarded to the Judicial Department from non-State funds.  The Administrative Office of the Courts shall make quarterly reports on transfers made pursuant to this section to the Joint Legislative Commission on Governmental Operations and to the Chairmen of the Senate and House Appropriations Committees on Justice and Public Safety.

Requested by:  Representatives Redwine, Anderson
CONTINUED PHASING IN OF NONBINDING ARBITRATION AND OF CUSTODY AND VISITATION MEDIATION
Sec. 46.  From funds appropriated to the Judicial Department in the certified budget for the 1992-93 fiscal year, the Administrative Office of the Courts may transfer within its budget up to seventy-five thousand dollars ($75,000) to implement nonbinding arbitration procedures in additional counties and judicial districts pursuant to G.S. 7A-37.1 and to establish local custody mediation and visitation programs in additional counties pursuant to G.S. 7A-494.

Requested by:  Representatives Redwine, Anderson
CONTINUE EXISTING JUVENILE SERVICES TRANSPORTATION PILOT PROGRAM
Sec. 47.  From funds appropriated to the Judicial Department in the certified budget for the 1992-93 fiscal year, the Administrative Office of the Courts may transfer funds within its budget to continue the Juvenile Services Division Transportation Pilot Project in District Court Districts 6A, 10, 11, and 24 at its 1991-92 funding level.

Requested by:  Representatives Redwine, Anderson
INTERIM FEES FOR ASSIGNED COUNSEL IN EXTRAORDINARY CASES
Sec. 48.  (a) G.S. 7A-455(b) reads as rewritten:
"(b)	In all cases the court shall fix the money value of services rendered by assigned counsel, the public defender, or the appellate defender, and such sum plus any sums allowed by the court for other necessary expenses of representing the indigent person, including any fees and expenses that may have been allowed prior to final determination of the action to assigned counsel pursuant to G.S. 7A-458, shall be entered as a judgment in the office of the clerk of superior court, and shall constitute a lien as prescribed by the general law of the State applicable to judgments.  Any reimbursement to the State as provided in subsection (a) of this section or any funds collected by reason of such judgment shall be deposited in the State treasury and credited against the judgment; provided, that counsel fees ordered paid to the clerk on behalf of the appointed counsel pursuant to G.S. 15A-1343(e) may be paid directly to the counsel.  In fixing the money value of services rendered by the public defender and the appellate defender, the court shall consider the factors normally involved in fixing the fees of private attorneys, such as the nature of the case, the time, effort, and responsibility involved, and the fee usually charged in similar cases.  The value of the services shall be fixed by a district court judge for actions or proceedings finally determined in the district court and by a superior court judge for actions or proceedings originating in, heard on appeal in, or appealed from the superior court.  Even if the trial, appeal, hearing, or other proceeding is never held, preparation therefor is nevertheless compensable."
(b) G.S. 7A-458 reads as rewritten:
"§ 7A-458. Counsel fees.
In districts which do not have a public defender, the court shall fix the fee to which an attorney who represents an indigent person is entitled. In doing so, the court shall allow a fee based on the factors normally considered in fixing attorneys' fees, such as the nature of the case, and the time, effort and responsibility involved. Fees shall be fixed by the district court judge who hears the case for actions or proceedings finally determined in the district court and by the superior court judge who hears the case for actions or proceedings originating in, heard on appeal in, or appealed from the superior court. Even if the trial, appeal, hearing or other proceeding is never held, preparation therefor is nevertheless compensable and, in capital cases and other extraordinary cases pending in superior court, the presiding judge may allow a fee for services rendered and payment for expenses incurred pending final determination of the case."

Requested by:  Representatives Redwine, Anderson
COMMUNITY PENALTIES PROGRAMS
Sec. 49.  Section 84.1 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 84.1.  (a)	Of the funds appropriated in this act to the Judicial Department to conduct the community penalty programs, the sum of one million five hundred eighteen thousand nine hundred twelve dollars ($1,518,912) shall be allocated in the 1991-92 fiscal year among the community penalties programs listed below as follows:
One Step Further, Inc. 	$139,664

Services to Nash County
Community Penalties Program 	44,000

Services to Rockingham/Caswell 	40,900

Fayetteville Area Sentencing
Center, Inc.	131,878

Re-Entry, Inc. 	93,500

Repay, Inc. 	100,045

Community Corrections
Resources, Inc.	104,379

Western Carolinians for
Criminal Justice, Inc.	100,300

Prison & Jail Project, Inc.	100,300

Community Penalties Program,
Inc.	68,213

Jacksonville Community
Penalties, Inc.	89,250

Services to Sampson, 
Duplin, and Jones Counties	55,000

Gaston Community Penalties,
Inc.	53,661

Services to Cleveland and
Lincoln Counties	38,000

Dispute Settlement Center,
Inc.	53,661

Appropriate Punishment
Option, Inc.	53,661

Mecklenburg Community
Corrections	93,500

Neuse River Council of
Governments DBA Neuse
River Community
Penalties Program	55,000

Tuscarora Tribe of North
Carolina	52,000

Citizens for Community Justice	52,000.

(b)	Funds allocated in subsection (a) and not used by the community penalties programs listed above may be used by the Judicial Department to establish new community penalties programs.
(b1)	Of the funds appropriated for the 1992-93 fiscal year to the Judicial Department to conduct the community penalties programs, the sum of one million five hundred eighteen thousand nine hundred twelve dollars ($1,518,912) may be allocated by the Judicial Department in the 1992-93 fiscal year in any amount among existing community penalties programs or may be used to establish new community penalties programs.  In addition, from any other funds appropriated to the Judicial Department in the certified budget for the 1992-93 fiscal year, the Administrative Office of the Courts may transfer funds to the community penalties programs for similar allocation or use.
(c)	The Judicial Department shall report annually to the Senate and House Appropriations Base Budget Committees on Justice and Public Safety and to the Fiscal Research Division on the administrative expenditures of the community penalties programs."

Requested by:  Representatives Redwine, Anderson 
MAKE JURISDICTION OF MAGISTRATE AND CLERK CONSISTENT WITH THAT OF JUDGES TO PROMULGATE WAIVER LISTS
Sec. 50. (a) G.S. 7A-148(a) reads as rewritten:
"(a)	The chief district judges of the various district court districts shall meet at least once a year upon call of the Chief Justice of the Supreme Court to discuss mutual problems affecting the courts and the improvement of court operations, to prepare and adopt uniform schedules of offenses for the types of offenses specified in G.S. 7A-273(2) for which magistrates and clerks of court may accept written appearances, waivers of trial or hearing and pleas of guilty or admissions of responsibility, and establish a schedule of penalties or fines therefor, and to take such further action as may be found practicable and desirable to promote the uniform administration of justice."
(b) G.S. 7A-146(8) is repealed.
(c) G.S. 7A-180 reads as rewritten:
"§ 7A-180. Functions of clerk of superior court in district court matters.
The clerk of superior court:
(1)	Has and exercises all of the judicial powers and duties in respect of actions and proceedings pending from time to time in the district court of his county which are now or hereafter conferred or imposed upon him by law in respect of actions and proceedings pending in the superior court of his county;
(2)	Performs all of the clerical, administrative and fiscal functions required in the operation of the district court of his county in the same manner as he is required to perform such functions in the operation of the superior court of his county;
(3)	Maintains, under the supervision of the Administrative Office of the Courts, an office of uniform consolidated records of all judicial proceedings in the superior court division and the district court division of the General Court of Justice in his county. Those records shall include civil actions, special proceedings, estates, criminal actions, juvenile actions, minutes of the court and all other records required by law to be maintained. The form and procedure for filing, docketing, indexing, and recording shall be as prescribed by the Administrative Officer of the Courts notwithstanding any contrary statutory provision as to the title and form of the record or as a method of indexing;
(4)	Has the power to accept written appearances, waivers of trial or hearing and pleas of guilty or admissions of responsibility for the types of offenses specified in G.S. 7A-273(2) in accordance with the schedules of offenses promulgated by the Conference of Chief District Judges pursuant to G.S. 7A-148, and in such cases, to enter judgment and collect the fine or penalty and costs;
(5)	Has the power to issue warrants of arrest valid throughout the State, and search warrants valid throughout the county of the issuing clerk;
(6)	Has the power to conduct an initial appearance in accordance with Chapter 15A, Article 24, Initial Appearance, and to fix conditions of release in accordance with Chapter 15A, Article 26, Bail; 
(7)	Continues to exercise all powers, duties and authority theretofore vested in or imposed upon clerks of superior court by general law, with the exception of jurisdiction in juvenile matters; and
(8)	Has the power to accept written appearances, waivers of trial and pleas of guilty to violations of G.S. 14-107 when restitution is made, the amount of the check is two thousand dollars ($2,000) or less, and the warrant does not charge a fourth or subsequent violation of this statute, and, in such cases, to enter such judgments as the chief district judge shall direct and, forward the amounts collected as restitution to the appropriate prosecuting witnesses and to collect the costs.
	."
(d)	G.S. 7A-273 reads as rewritten:
"§ 7A-273.  Powers of magistrates in infractions or criminal actions.
In criminal actions or infractions, any magistrate has power:
(1)	In misdemeanor or infraction cases, other than the types of offenses specified in subdivision (2) of this section, in which the maximum punishment which can be adjudged cannot exceed imprisonment for 30 days, or a fine of fifty dollars ($50.00) or a penalty of not more than fifty dollars ($50.00), exclusive of costs, to accept guilty pleas or admissions of responsibility and enter judgment;
(2)	In misdemeanor or infraction cases involving alcohol offenses under Chapter 18B of the General Statutes, traffic offenses, hunting, fishing, State park recreation area offenses under Chapter 113 of the General Statutes,  boating offenses under Chapter 75A of the General Statutes, and littering offenses under G.S. 14-399(c), to accept written appearances, waivers of trial or hearing and pleas of guilty or admissions of responsibility, in accordance with the schedule of offenses and fines or penalties promulgated by the Conference of Chief District Judges pursuant to G.S. 7A-148, and in such cases, to enter judgment and collect the fines or penalties and costs;
(3)	To issue arrest warrants valid throughout the State;
(4)	To issue search warrants valid throughout the county; 
(5)	To grant bail before trial for any noncapital offense;
(6)	Notwithstanding the provisions of subdivision (1) of this section, to hear and enter judgment as the chief district judge shall direct in all worthless check cases brought under G.S. 14-107, when the amount of the check is two thousand dollars ($2,000) or less. Provided, however, that under this section magistrates may not impose a prison sentence longer than 30 days;
(7)	To conduct an initial appearance as provided in G.S. 15A-511; and
(8)	To accept written appearances, waivers of trial and pleas of guilty in violations of G.S. 14-107 when the amount of the check is two thousand dollars ($2,000) or less, restitution is made, and the warrant does not charge a fourth or subsequent violation of this statute, and in these cases to enter judgments as the chief district judge directs.
	."

Requested by:  Representatives Redwine, Anderson
PROVIDE FOR COUNSEL IN CLEMENCY PROCEEDINGS
Sec. 51.  (a) G.S. 7A-451(a) reads as rewritten:
"(a)	An indigent person is entitled to services of counsel in the following actions and proceedings:
(1) 	Any case in which imprisonment, or a fine of five hundred dollars ($500.00), or more, is likely to be adjudged;
(2) 	A hearing on a petition for a writ of habeas corpus under Chapter 17 of the General Statutes;
(3) 	A motion for appropriate relief under Chapter 15A of the General Statutes if the defendant has been convicted of a felony, has been fined five hundred dollars ($500.00) or more, or has been sentenced to a term of imprisonment;
(4) 	A hearing for revocation of probation;
(5) 	A hearing in which extradition to another state is sought;
(6) 	A proceeding for an inpatient involuntary commitment to a facility under Part 7 of Article 5 of Chapter 122C of the General Statutes, or a proceeding for commitment under Part 8 of Article 5 of Chapter 122C of the General Statutes;
(7) 	In any case of execution against the person under Chapter 1,  Article 28 of the General Statutes, and in any civil arrest and bail proceeding under Chapter 1, Article 34, of the General Statutes;
(8) 	In the case of a juvenile, a hearing as a result of which commitment to an institution or transfer to the superior court for trial on a felony charge is possible;
(9) 	A hearing for revocation of parole at which the right to counsel is provided in accordance with the provisions of Chapter 148, Article 4, of the General Statutes;
(10)	A proceeding for sterilization under Chapter 35, Article 7 (Sterilization of Persons Mentally Ill and Mentally Retarded) of the General Statutes; 
(11)	A proceeding for the provision of protective services according to Chapter 108, Article 4, of the General Statutes;
(12)	In the case of a juvenile alleged to be neglected under Chapter 7A, Article 23 of the General Statutes;
(13)	A proceeding to find a person incompetent under Subchapter I of Chapter 35A, of the General Statutes;
(14)	A proceeding to terminate parental rights where a guardian ad litem is appointed pursuant to G.S. 7A-289.23;
(15)	An action brought pursuant to Article 24B of Chapter 7A of the General Statutes to terminate an indigent person's parental rights;
(16)	A proceeding on a request in a capital case for executive clemency, as authorized by Article III, Sec. 5(6) of the North Carolina Constitution."
(b)	G.S. 7A-458 reads as rewritten:
"§ 7A-458. Counsel fees.
(a)	In districts which do not have a public defender, the court shall fix the fee to which an attorney who represents an indigent person is entitled. In doing so, the court shall allow a fee based on the factors normally considered in fixing attorneys' fees, such as the nature of the case, and the time, effort and responsibility involved. Fees shall be fixed by the district court judge who hears the case for actions or proceedings finally determined in the district court and by the superior court judge who hears the case for actions or proceedings originating in, heard on appeal in, or appealed from the superior court. Even if the trial, appeal, hearing or other proceeding is never held, preparation therefor is nevertheless compensable.
(b)	Notwithstanding the provisions of subsection (a) of this section, the State shall spend no more than ten thousand dollars ($10,000) per capital case for counsel authorized by G.S. 7A-451(a)(16)."

Requested by:  Representatives Nesbitt, Anderson, Redwine
ASSISTANT CLERKS' SALARY RANGE
Sec. 52.  G.S. 7A-102(d) reads as rewritten:
"(d)	Full-time assistant clerks, licensed to practice law in North Carolina, who are employed in the office of superior court clerk on and after July 1, 1984, are authorized an annual salary of not less than three-fourths of the maximum annual salary established for assistant clerks; the clerk of superior court, with the approval of the Administrative Office of the Courts, may establish a higher annual salary but that salary shall not be higher than the maximum annual salary established for assistant clerks.  Full-time assistant clerks, holding a law degree from an accredited law school, who are employed in the office of superior court clerk on and after July 1, 1984, are authorized an annual salary of not less than two-thirds of the maximum annual salary established for assistant clerks; the clerk of superior court, with the approval of the Administrative Office of the Courts, may establish a higher annual salary, but the entry-level salary may not be more than three-fourths of the maximum annual salary established for assistant clerks, and in no event may be higher than the maximum annual salary established for assistant clerks.  The entry-level annual salary for all other assistant and deputy clerks employed on and after July 1, 1984, shall be at the minimum rates as herein established."
Requested by:  Representative Redwine
NEW ASSISTANT DISTRICT ATTORNEYS
Sec.  52.1. (a)	Effective August 1, 1992, G.S. 7A-60(a1) reads as rewritten:
"(a1)	The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full-time assistant district attorneys set forth in the following table:	No. of Full-Time
Prosecutorial	 Asst. District
District	      Counties	   Attorneys
1	Camden, Chowan, Currituck,	6   
Dare, Gates, Pasquotank,
Perquimans
2	Beaufort, Hyde, Martin,	4   
Tyrrell, Washington
3A	Pitt	5   
3B	Carteret, Craven, Pamlico	6   
4	Duplin, Jones, Onslow,	10   
Sampson
5	New Hanover, Pender	8   
6A	Halifax	2   
6B	Bertie, Hertford, Northampton	3   
7	Edgecombe, Nash, Wilson     	9   
8	Greene, Lenoir, Wayne	8   
9	Franklin, Granville, 	8   
Person, Vance, Warren
10	Wake	17   
11	Harnett, Johnston, Lee	7   
12	Cumberland	11   
13	Bladen, Brunswick, Columbus	6   
14	Durham	9   
15A	Alamance	6   
15B	Orange, Chatham	4   
16A	Scotland, Hoke	3   
16B	Robeson	7   
17A	Caswell,	5   
Rockingham
17B	Stokes, Surry	4   
18	Guilford	16   
19A	Cabarrus, Rowan	8   
19B	Montgomery, Randolph	4   
20	Anson, Moore, Richmond,	10   
Stanly, Union
21	Forsyth	11   
22	Alexander, Davidson, Davie,	10   
Iredell
23	Alleghany, Ashe, Wilkes,	4   
Yadkin
24	Avery, Madison, Mitchell,	3   
Watauga, Yancey
25	Burke, Caldwell, Catawba	10   
26	Mecklenburg	22   
27A	Gaston	8   
27B	Cleveland,	5   
Lincoln
28	Buncombe	7   
29	Henderson, McDowell, Polk,	8   
Rutherford, Transylvania
30	Cherokee, Clay, Graham,	6   
Haywood, Jackson, Macon,
Swain."
(b) Effective October 1, 1992, G.S.7A-60(a1), as amended by subsection (a) of this section, reads as rewritten:
"(a1)	The counties of the State are organized into prosecutorial districts, and each district has the counties and the number of full-time assistant district attorneys set forth in the following table:
	No. of Full-Time
Prosecutorial	 Asst. District
District	      Counties	   Attorneys
1	Camden, Chowan, Currituck,	6   
Dare, Gates, Pasquotank,
Perquimans
2	Beaufort, Hyde, Martin,	4   
Tyrrell, Washington
3A	Pitt	6   
3B	Carteret, Craven, Pamlico	6   
4	Duplin, Jones, Onslow,	10   
Sampson
5	New Hanover, Pender	9   
6A	Halifax	3   
6B	Bertie, Hertford, Northampton	3   
7	Edgecombe, Nash, Wilson     	10   
8	Greene, Lenoir, Wayne	8   
9	Franklin, Granville, 	8   
Person, Vance, Warren
10	Wake	18   
11	Harnett, Johnston, Lee	8   
12	Cumberland	12   
13	Bladen, Brunswick, Columbus	6   
14	Durham	9   
15A	Alamance	6   
15B	Orange, Chatham	4   
16A	Scotland, Hoke	3   
16B	Robeson	7   
17A	Caswell,	5   
Rockingham
17B	Stokes, Surry	4   
18	Guilford	16   
19A	Cabarrus, Rowan	8   
19B	Montgomery, Randolph	4   
20	Anson, Moore, Richmond,	10   
Stanly, Union
21	Forsyth	12   
22	Alexander, Davidson, Davie,	10   
Iredell
23	Alleghany, Ashe, Wilkes,	4   
Yadkin
24	Avery, Madison, Mitchell,	3   
Watauga, Yancey
25	Burke, Caldwell, Catawba	10   
26	Mecklenburg	22   
27A	Gaston	8   
27B	Cleveland,	5   
Lincoln
28	Buncombe	7   
29	Henderson, McDowell, Polk,	8   
Rutherford, Transylvania
30	Cherokee, Clay, Graham,	6   
Haywood, Jackson, Macon,
Swain."

PART 16.  DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by:  Representatives Anderson, Redwine, Jeffus
SUMMIT HOUSE
Sec. 53.  Of the funds appropriated to the Department of Crime Control and Public Safety for the 1992-93 fiscal year, the sum of two hundred fifty thousand dollars ($250,000) shall be used to support the program at Summit House, a community-based residential alternative to incarceration for mothers and pregnant women convicted of nonviolent crimes.  Summit House shall report quarterly to the Joint Legislative Commission on Governmental Operations on the expenditure of State appropriations and on the effectiveness of the program, including information on the number of clients served, the number of clients who have their probation revoked, and the number of clients who successfully complete the program while housed at Summit House.

Requested by:  Representatives Anderson, Redwine
OPERATING FUNDS FOR AIR NATIONAL GUARD'S HANGAR
Sec. 54.  Of the funds appropriated in this act to the Department of Crime Control and Public Safety for the 1992-93 fiscal year, the sum of five thousand six hundred seventeen dollars ($5,617) shall be used to operate the Air National Guard's new maintenance hangar which is located at Douglas International Airport in Charlotte.

Requested by:  Representatives Barnes, Redwine, Anderson
LEGISLATIVE REVIEW OF DRUG LAW ENFORCEMENT AND OTHER GRANTS
Sec. 55.  Section 73 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(a)	Section 1303(4) of the Omnibus Crime Control and Safe Streets Act of 1968 provides that State applications for drug law enforcement grants are subject to review by the State legislature or its designated body.
(b)	The North Carolina General Assembly hereby provides that State applications for grants under the State and Local Law Enforcement Assistance Act of 1986, Part M of the Omnibus Crime Control and Safe Streets Act of 1968 as enacted by Subtitle K of P.L. 99-570, the Anti-Drug Abuse Act of 1986, are subject to review by the Joint Legislative Commission on Governmental Operations if at the time of review the General Assembly is not in session.  Any State agency submitting a grant application for review shall also report to the House Appropriations Subcommittee on Justice and Public Safety with regard to the grant.
(c)	Unless a State statute provides a different forum for review where a federal law or regulation provides that a State application for a grant must be reviewed by the State legislature or its designated body and at the time of the review the General Assembly is not in session, that application shall be reviewed by the Joint Legislative Commission on Governmental Operations.  Any State agency submitting a grant application for review shall also report to the House Appropriations Subcommittee on Justice and Public Safety with regard to the grant.
(d)	The Government Performance Audit Committee, established by the Legislative Services Commission pursuant to Section 347 of Chapter 689 of the 1991 Session Laws, shall study the current procedure regarding legislative review of federal grants and shall consider how to provide advance legislative review of the grants being requested by State agencies and how to streamline review procedures. The Government Performance Audit Committee shall include its findings and recommendations in its report to the 1993 General Assembly.  The Government Performance Audit Committee shall consider the following issues in its study:
(1)	The need to receive for legislative review prior to a State agency's applying for a federal grant accurate information and  documentation regarding:
a.	The length of time that federal funds will remain available.
b.	The fiscal impact with regard to the State's budget if federal grant money is received.
c.	The fiscal impact with regard to the State's budget when the federal funds for a particular grant are reduced or cease to be available.
d.	The number of personnel positions to be established if the federal grant is received, the funding that is available at the State and federal level for those positions when initially created, and the funding available to continue those positions if federal funding is reduced or ceases to be available.
(2)	The use of salary reserve funds by a State agency to create new personnel positions.
(3)	The need to streamline the advance review of federal grants that are requested by State agencies.
(4)	The need to restrict the State Budget Office from creating new personnel positions without obtaining prior legislative approval."

PART 17.  DEPARTMENT OF JUSTICE

Requested by:  Representatives Anderson, Redwine
DEPARTMENT OF JUSTICE STUDY/CHARGES FOR LEGAL SERVICES TO LOCAL GOVERNMENTS AND STATE AGENCIES
Sec. 56.  Section 86 of Chapter 689 of the 1991 Session Laws reads as rewritten:
	"Sec. 86.  (a)	The Department of Justice shall study the feasibility of charging local governments for legal services rendered to those governments by the Office of the Attorney General.  The Department of Justice shall consider the number of requests for legal assistance received from local governments, the type of legal assistance requested, the time required to respond to the requests, and any other matters related to the issue of charging local governments for legal assistance.  The Department of Justice shall also consider what fee, if any, is appropriate to charge local governments for such legal services.  The Department of Justice shall report its findings and recommendations to the 1993 General Assembly.
(b)	The Department of Justice shall study the feasibility of an increase in the fees currently charged other State departments and agencies for its legal services, such fee increase to be effective for the 1993-94 fiscal year.  The Department of Justice shall also study the feasibility of requiring all State departments and agencies that have attorneys assigned to them by the Attorney General to pay the compensation, including salaries and benefits, for those legal positions.  The Department of Justice shall report its findings and recommendations to the 1993 General Assembly."

PART 18.  DEPARTMENT OF HUMAN RESOURCES

Requested by:  Representatives Nye, Easterling
DRUG USE REVIEW PROGRAM/RULES
Sec. 57.  Chapter 108A of the General Statutes is amended by adding a new section to read:
"§ 108A-68.  Drug Use Review Program; rules.
Notwithstanding the provisions of Chapter 90 of the General Statutes or of any other provision of law, the Division of Medical Assistance, Department of Human Resources, shall adopt rules implementing the drug use review provisions of the Omnibus Budget Reconciliation Act of 1990, as amended."

Requested by:  Representatives Easterling, Nye
MEDICAID
Sec. 58.  Section 93 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 93.  (a)	Funds appropriated in this Title 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 prescribed in the State 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)	Nursing Facilities - As prescribed under the reimbursement plan for Nursing Facilities.  Nursing facilities providing services to Medicaid recipients who also qualify for Medicare, must be enrolled in the Medicare program as a condition of participation in the Medicaid program, subject to phase-in certification for those nursing facilities not already enrolled in Medicare.  State facilities are not subject to the requirement to enroll in the Medicare Program.
(4)	Intermediate Care Facilities for the Mentally Retarded - As prescribed under the State Plan for reimbursing intermediate care facilities for the mentally retarded.
(5)	Drugs - Drug costs as allowed by federal regulations plus a 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 (f) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with the State Plan adopted by the Department of Human Resources consistent with federal reimbursement regulations.  Payment of the professional services fee shall be made in accordance with the plan adopted by the Department of Human Resources, consistent with federal reimbursement regulations.  Adjustments to the professional services fee shall be established by the General Assembly.
(6)	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 (g) of this section.
(7)	Community Alternative Program, EPSDT Screens - Payment to be made in accordance with rate schedule developed by the Department of Human Resources.
(8)	Home Health and Related Services, Private Duty Nursing, Clinic Services, Prepaid Health Plans, Durable Medical Equipment - Payment to be made according to reimbursement plans developed by the Department of Human Resources.
(9)	Medicare Buy-In - Social Security Administration premium.
(10)	Ambulance Services - Uniform fee schedules as developed by the Department of Human Resources.
(11)	Hearing Aids - Actual cost plus a dispensing fee.
(12)	Rural Health Clinic Services - Provider based - reasonable cost; nonprovider based - single cost reimbursement rate per clinic visit.
(13)	Family Planning - Negotiated rate for local health departments.  For other providers - see specific services, for instance, hospitals, physicians.
(14)	Independent Laboratory and X-Ray services - Uniform fee schedules as developed by the Department of Human Resources.
(15)	Optical Supplies - One hundred percent (100%) of reasonable wholesale cost of materials.
(16)	Ambulatory Surgical Centers -  Payment as prescribed in the reimbursement plan established by the Department of Human Resources.
(17)	Medicare Crossover Claims - An amount up to the actual coinsurance or deductible or both, in accordance with the plan, as approved by the Department of Human Resources.
(18)	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.
(19)	Personal Care Services - Payment in accordance with plan approved by the Department of Human Resources.
(20)	Case Management Services - Reimbursement in accordance with the availability of funds to be transferred within the Department of Human Resources.
(21)	Hospice - Services may be provided in accordance with plan developed by the Department of Human Resources.
(22)	Other Mental Health Services - Unless otherwise covered by this section, coverage is limited to agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services, and reimbursement is made in accordance with a plan developed by the Department of Human Resources not to exceed the upper limits established in federal regulations.
(23)	Medically Necessary Prosthetics or Orthotics for EPSDT Eligible Children - Reimbursement in accordance with plan approved by the Department of Human Resources.
(24)	Health Insurance Premiums - Payments to be made in accordance with the plan adopted by the Department of Human Resources consistent with federal regulations.
Services and payment bases may be changed with the approval of the Director of the Budget.
Reimbursement is available for up to 24 visits per recipient per year to any one or combinations of the following: physicians, clinics, hospital outpatients, optometrists, chiropractors, and podiatrists.  Prenatal services, all ESPDT children, and emergency rooms are exempt from the visit limitations contained in this paragraph.  Exceptions may be authorized by the Department of Human Resources where the life of the patient would be threatened without such additional care.  Any person who is determined by the Department to be exempt from the 24-visit limitation may also be exempt from the six-prescription limitation.
(b)	Allocation of Nonfederal Cost of Medicaid.  The State shall pay eight-five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section.
(c)	Copayment for Medicaid Services.  The Department of Human Resources may establish copayment up to the maximum permitted by federal law and regulation.
(d)	Medicaid and Aid to Families with Dependent Children Income Eligibility Standards.  Effective January 1, 1990, 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	$ 4,344 $ 2,172	$ 2,00
2	5,664 2,832	3,800
3	6,528 3,264	4,400
4	7,128 3,564	4,800
5	7,776 3,888	5,200
6	8,376 4,188	5,600
7	8,952 4,476	6,000
8	9,256 4,680	6,300

*Aid to Families with Dependent Children (AFDC); Aid to the Aged (AA); Aid to the Blind (AB); and 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)   Dental Coverage Limits.  Until October 1, 1992, 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.  Effective October 1, 1992, dental services shall be provided on a restricted basis in accordance with rules adopted by the Department to implement this subsection.
(f)	 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.  Generic drugs, when available in the pharmacy, shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand name drugs, subject to the prescriber's 'dispense as written' order as noted above.
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 the 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).
(g)	 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 United States 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.
(h)	 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.
(i)	 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.
(j)	 For all Medicaid eligibility classifications for which 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.
(k)	 Effective January l, 1988, the Department of Human Resources shall provide Medicaid to 19-, 20-, and 21-year-olds in accordance with federal rules and regulations.
(l)	 The Department of Human Resources shall provide coverage to pregnant women and children according to the following schedule:
(1)	Pregnant women with incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits;
(2)	Infants under the age of 1 with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each April l, shall be covered for Medicaid benefits;
(3)	Children aged 1 through 5 with family incomes equal to or less than one hundred thirty-three percent (133%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits; and
(4)	Children aged 6 through 18 who were born after September 30, 1983, with family incomes equal to the federal poverty guidelines as revised each April 1, shall be covered for Medicaid benefits.
Services to pregnant women eligible under this section continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy.  In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children eligible under this section, no resources test shall be applied.
(m)	 The Department of Human Resources may use Medicaid funds budgeted from program services to support the cost of administrative activities to the extent that these administrative activities produce a net savings in services requirements.  Administrative initiatives funded by this section shall be first approved by the Office of State Budget and Management."

Requested by:  Representatives Easterling, Nye
PHYSICIAN SERVICES
Sec. 59.  With the approval of the Office of State Budget and Management, the Department of Human Resources may use funds appropriated in this act for across-the-board salary increases and performance pay to offset similar increases in the costs of contracting with private and independent universities for the provision of physician services to clients in facilities operated by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.  This offsetting shall be done in the same manner as is currently done with constituent institutions of The University of North Carolina.

Requested by:  Representatives Nye, Easterling
LIABILITY INSURANCE
Sec. 60.  Section 114 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 114.  The Secretary of the Department of Human Resources, the Secretary of the Department of Environment, Health, and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed $1,000,000 on behalf of employees of the Departments licensed to practice medicine or dentistry, and on behalf of medical residents from The University of North Carolina who are in training at institutions operated by the Department of Human Resources.  This coverage may include commercial insurance or self-insurance and shall cover these individuals for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment or training.
The coverage provided under this section shall not cover any individual for any act or omission that the individual knows or reasonably should know constitutes a violation of the applicable criminal laws of any state or the United States, or that arises out of any sexual, fraudulent, criminal, or malicious act, or out of any act amounting to willful or wanton negligence.
The coverage provided pursuant to this section shall not require any additional appropriations and shall not apply to any individual providing contractual service to the Department of Human Resources, the Department of Environment, Health, and Natural Resources, or the Department of Correction, with the exception that coverage may include medical residents from The University of North Carolina who are in training at institutions operated by the Department of Human Resources."

Requested by:  Representatives Easterling, Nye
NON-MEDICAID REIMBURSEMENT
Sec. 61.  Section 115 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 115.  Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Human Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days.  When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one of this section, the Department of Human Resources may negotiate with providers of medical services under the various Department of Human Resources' programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes:  contracts or agreements for medical services and purchases of medical equipment and other medical supplies.  These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents, and clients who require these services that cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs shall be as follows:
Family	Medical Eye	 All
Size	Care Adults	Rehabilitation	Other
1	$4,860	$ 8,364	$4,200
2 	 5,940	 10,944 	 5,300
3 	 6,204	 13,500 	 6,400
4	 7,284	 16,092 	 7,500
5	 7,824	 18,648 	 7,900
6	 8,220	 21,228 	 8,300
7	 8,772	 21,708	 8,800
8	 9,312	 22,220 	 9,300

The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind and for adults in the Clozaril program in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year.
The Department of Human Resources shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department."

Requested by:  Representatives Nye, Easterling
DEVELOPMENTAL DAY CENTERS' GRANT-IN-AID
Sec. 62.  Section 118 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 118.  Of the funds appropriated in this Title, to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of two million two hundred sixty thousand four hundred seventy dollars ($2,260,470) for the 1991-92 fiscal year and two million three hundred one thousand two hundred forty-eight dollars ($2,301,248) for the 1992-93 fiscal year are transferred to the Department of Public Instruction for handicapped children aged 3 through 4 years who have been identified through Division of Mental Health, Developmental Disabilities, and Substance Abuse Services statewide services and who are served in developmental day centers.  These funds shall be used to contract with area mental health, developmental disabilities, and substance abuse authorities or with public or private nonprofit developmental day centers to continue to serve handicapped children aged 3 through 4 years who are identified as needing developmental day services.
The Department of Public Instruction shall report to the General Assembly and to the Fiscal Research Division by May 1, 1992 and May 1, 1993, regarding the use of the funds transferred to it by this section."

Requested by:  Representatives Easterling, Nye
DEPARTMENT OF HUMAN RESOURCES PROGRAM FUNDS
Sec. 63.  Section 132 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 132.  Notwithstanding the provisions of G.S. 143-23, the Secretary of the Department of Human Resources, with the approval of the Office of State Budget and Management, may use, to the extent possible, any funds appropriated or otherwise available to the Department in the 1991-92 fiscal year and in the 1992-93 fiscal year for the Mental Health Accounts Receivable/Billing System."

Requested by:  Representatives Nye, Easterling
ICF/MR/DD PLAN AND IMPLEMENTATION SCHEDULE
Sec. 64.  The Department of Human Resources shall develop a plan and an implementation schedule to address the escalating use and costs of intermediate care facilities for the mentally retarded/developmentally disabled (ICF/MR/DD) community facilities.  This plan shall include provisions for the Area Mental Health, Developmental Disabilities, and Substance Abuse Services authorities to screen all clients for all Developmental Disabilities programs, including ICF/MR/DD facilities.  The plan shall also include alternative, less costly methods for establishing ICF/MR/DD community facility reimbursement rates and alternative, less costly services that could meet the needs of people currently in ICF/MR/DD community facilities.  Any new reimbursement rate methodology shall be applied to all facilities seeking a Certificate of Need after a date to be specified by the Department and shall be phased in according to a schedule developed by the Department for all existing ICF/MR/DD community facilities.  The Department shall implement elements of the plan as quickly as possible and shall present the plan and any results of its implementation to the General Assembly by March 1, 1993. 

Requested by:  Representatives Nye, Easterling
MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES FUNDS
Sec. 65.  (a) Of the funds appropriated in this act to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of five million dollars ($5,000,000) for the 1992-93 fiscal year shall be expended in accordance with the plans developed by the Mental Health Study Commission and adopted by the General Assembly.
These funds shall be allocated as follows:
(1)	Services for the mentally ill	$1,666,666;
(2)	Services for the developmentally
	 disabled	$1,666,667; and
(3)	Services for substance abusers	$1,666,667.
(b) Of the funds allocated in subsection (a) of this section for services for the developmentally disabled, two hundred thousand dollars ($200,000) shall be transferred in the 1992-93 fiscal year to the Division of Maternal and Child Health, Department of Environment, Health, and Natural Resources, for the United Cerebral Palsy therapeutic preschool programs.
(c) The Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall ensure that the funds expended under this section are used for the disability populations for which they were intended.
(d) The Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall report to the General Assembly by March 1, 1993, regarding the expenditure of funds authorized by this section.
(e) To the maximum extent possible, Area Mental Health Authorities are encouraged to develop service implementation plans in accordance with the long range plans of the Mental Health Study Commission and with the involvement of local affected organizations.  These plans may be used as the basis for future budget requests submitted to the Division.
Criteria for development and content of these plans shall be developed by the Department of Human Resources and the members of Coalition 2001 and presented to the Mental Health Study Commission for consideration by November 1, 1992.  The plans themselves shall be ready for review by the Department and the Mental Health Study Commission by November 1, 1993.

Requested by:  Representatives Easterling, Nye
CERTIFICATE OF NEED/MEDICAID
Sec. 66.  (a) G.S. 131E-185(b) is repealed.
(b) G.S. 131E-185(c) reads as rewritten:
"(c)	The Department may extend the review period for a period not to exceed 60 days and provide notice of such extension to all applicants."
(c) G.S. 131E-186 reads as rewritten:
"§ 131E-186.  Decision.
(a)	Within the prescribed time limits in G.S. 131E-185, the Department shall issue a decision to 'approve,' 'approve with conditions,' or 'deny,' an application for a new institutional health service.  Approvals involving new or expanded nursing care or intermediate care for the mentally retarded bed capacity shall include a condition that specifies the earliest possible date the new institutional health service may be certified for participation in the Medicaid program.  The date shall be set far enough in advance to allow the Department to identify funds to pay for care in the new or expanded facility in its existing Medicaid budget or to include these funds in its State Medicaid budget request for the year in which Medicaid certification is expected.
(b)	Within five business days after it makes a decision on an application, the Department shall provide written notice of all the findings and conclusions upon which it based its decision, including the criteria used by the Department in making its decision, to the applicant."

Requested by:  Representatives Easterling, Nye
ICF AND ICF/MR WORK INCENTIVE ALLOWANCES
Sec. 67.  Effective October 1, 1992, the Department of Human Resources may provide an incentive allowance to Medicaid eligible recipients of ICF and ICF/MR facilities who are regularly engaged in work activities as part of their developmental plan and for whom retention of additional income contributes to their achievement of independence.  The State funds required to match the federal funds that are available for these allowances shall be provided from savings within the Medicaid budget or from other unbudgeted funds available to the Department.  The incentive allowances may be as follows:
Monthly Net Wages	Monthly Incentive Allowance

$1.00 to $100.00	Up to $50.00
$101.00 to $200.00	      $80.00
$201.00 to $300.00	      $130.00
$301.00 and greater	      $212.00.

Requested by:  Representatives Easterling, Nye
STATE/LOCAL CHILD FATALITY PREVENTION INITIATIVES
Sec. 68.  (a) The Department of Human Resources shall conduct a study of how best to ensure the county child protective services programs' accountability, to ensure that their management organization is the best it can be, and to determine whether there is a need for stronger State supervision of the county programs.  The Department shall report the results of this study, including any legislative proposals, to the 1993 General Assembly by March 1, 1993.
(b) The Department of Human Resources, Division of Social Services, shall ensure that community interdisciplinary teams develop protocols to use in child abuse and neglect reviews.

Requested by:  Representatives Nye, Easterling, Diamont
SOCIAL SERVICES' PROTECTIVE SERVICES' ALLOCATION
Sec. 69.  Of the funds appropriated to the Department of Human Resources, Division of Social Services, for the 1992-93 fiscal year for child protective services, the sum of one million dollars ($1,000,000) shall be allocated among all of the county departments of social services based on the percentage that the total number of child abuse and neglect reports within that county represents to the statewide total number of child abuse and neglect reports.  These percentages shall be computed from the reports received by the Central Registry of Abuse and Neglect for the last two fiscal years.

Requested by:  Representatives Easterling, Nye
TASK FORCE ON CHILD PROTECTIVE SERVICES FUNDING
Sec. 70.  The Secretary of the Department of Human Resources shall appoint a Task Force on the Financing of Child Protective Services Programs.  The Task Force shall be composed of officials from State and local government agencies that affect child protective services development or delivery, at least one member of the House of Representatives, and one member of the Senate.  The Task Force shall develop recommendations for State/county cost sharing of child protective services programs. Each recommendation shall include an assessment of fiscal impact and a schedule for implementation.  Among the options studied, the Task Force shall consider a recommendation that applies a sliding match requirement to counties based on the counties' ability to pay and their relative burden of public assistance cases.  The Task Force shall report the results of its study, together with any recommendations, including any legislative proposals, to the 1993 General Assembly and to the Fiscal Research Division of the Legislative Services Office within one week of the convening of the 1993 General Assembly.

Requested by:  Representatives Easterling, Nye
ADOPTION SUBSIDY
Sec. 71.  Section 99 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 99.  Effective July 1, 1991, the adoption subsidy paid monthly by the Division of Social Services, Department of Human Resources, to eligible families who adopt hard-to-place children shall be established at one hundred fifty dollars ($150.00) per child per month.  Effective July 1, 1992, this adoption subsidy shall be established at two hundred dollars ($200.00) per child per month."

Requested by:  Representatives Nye, Easterling, Diamont
INFANT MORTALITY FUNDS
Sec. 72.  The Department of Human Resources, Division of Medical Assistance, with support by the Office of Rural Health and Resource Development, the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, the Governor's Commission on the Reduction of Infant Mortality, and other relevant community groups, shall conduct a study to determine the extent to which the lack of provider participation in the Medicaid program creates access barriers to pregnant women and children on Medicaid.  The study shall examine the extent of participation in the Medicaid program by obstetricians, family practitioners, certified nurse midwives, and pediatricians who provide prenatal, delivery, or pediatric services, as well as different methods of increasing provider participation.  The Division of Medical Assistance shall report its findings to the 1993 General Assembly no later than March 15, 1993.

Requested by:  Representatives Nye, Easterling
DOMICILIARY CARE REIMBURSEMENT RATE INCREASE
Sec. 73. Section 127 of Chapter 689 of the 1991 Session Laws, as rewritten by Section 221 of Chapter 689 of the 1991 Session Laws, reads as rewritten:
"Sec. 127.  Effective July 1, 1991, the maximum monthly rate for ambulatory residents in domiciliary care facilities shall be eight hundred thirty-two dollars ($832.00) and the maximum monthly rate for semiambulatory residents shall be eight hundred seventy-one dollars ($871.00).  Effective July 1, 1992, the maximum monthly rates for ambulatory residents shall be increased to eight hundred seventy-six dollars ($876.00) and for semiambulatory residents to nine hundred fifteen dollars ($915.00)."

Requested by:  Representatives Nye, Easterling
ADOLESCENT PARENTING PROGRAM
Sec. 74.  The Division of Social Services, Department of Human Resources, shall evaluate all of the adolescent parenting program  and shall report its findings to the House and Senate Appropriations Committees by January 1, 1993.
The evaluations of these programs shall include a study of the effectiveness of the programs in preventing the second pregnancies, enhancing parenting skills, improving prenatal and perinatal care, and continuing secondary education participation among the target population.

Requested by:  Representatives Easterling, Nye
CHILD DAY CARE REVOLVING LOAN FUND
Sec. 75.  Notwithstanding any law to the contrary, funds budgeted for the Child Day Care Revolving Loan Fund may be transferred to and invested by the financial institution contracted to operate the Fund.  The principal and any income to the Fund may be used to make loans, reduce loan interest to borrowers, serve as collateral for borrowers, pay the contractor's cost of operating the Fund, or to pay the Department's cost of administering the program.

Requested by:  Representatives Nye, Easterling
SOCIAL SERVICES PLAN/FAMILY PRESERVATION SERVICES
Sec. 76.  (a) Of the funds appropriated to the Department of Human Resources, Division of Social Services, in this act for the 1992-93 fiscal year, the sum of one hundred thousand dollars ($100,000) shall be used to enable the Department to develop further the Social Services Plan, in consultation and cooperation with other appropriate agencies and organizations and consistent with the policies as provided by Chapter 448 of the 1989 Session Laws.  
As part of the further development of the Social Services Plan, the Department of Human Resources shall pilot in three to five counties the core services as described in its report on the Social Services Plan to the General Assembly.  The piloting shall include the establishment of minimum standards for the provision of the core services, including the staffing standards, caseload standards, training standards, and facilities standards.  
In implementing Family Centered Services as a core service, the Secretary of the Department of Human Resources shall consider the advice and recommendations of the Advisory Committee on Family Centered Services. 
These funds may be used as match for federal funds that may be available in order to maximize support for the pilot.  Funds appropriated by the General Assembly to be allocated to counties for child protective services shall be used by the pilot counties to strengthen investigations and treatment in Child Protective Services as a core service.  Any funds allocated to counties pursuant to this subsection shall be matched by the counties at the rate of one county dollar for every three State dollars.
(b)	Of the funds appropriated to the Department of Human Resources, Division of Social Services, the sum of fifty thousand dollars ($50,000) for the 1992-93 fiscal year shall be used to make grants to public or private agencies to develop and implement model programs of locally based Family Preservation Services as provided in Part 4A of Article 3 of Chapter 143B of the General Statutes, Family Preservation Act.  These funds shall be used in conjunction with funds identified within the Department to implement the Family Preservation Services Program as provided in this section.  The Secretary of the Department of Human Resources shall ensure that the development of these Family Preservation Models and the piloting of the core social services described in subsection (a) of this section are coordinated at State and local levels to achieve the most effective service delivery for families and use of available funding sources.

PART 19.  DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Requested by:  Representatives Ethridge, H. Hunter
MCNC BUDGET LIMITS
Sec. 77.  Section 150 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 150. (a)	The funds appropriated in this act to MCNC shall be used as follows:
FY 1991-92	FY 1992-93
Microelectronics Program	$6,194,302	$4,768,966
Grants Program	      -0-	-0-   
Administration & Support	  2,204,804	 2,000,000
Supercomputer	  5,298,063	 5,224,705
Telecommunications	  2,827,971	4,006,329
(b)	Of the funds appropriated to MCNC for the Microelectronics Program, two million dollars ($2,000,000) of the total appropriation in each fiscal year is contingent upon a dollar-for-dollar match in non-State funds.
(c)	If MCNC finds it necessary to make changes in the program allocations specified in subsection (a) of this section, MCNC shall report such changes to the Joint Legislative Commission on Governmental Operations 30 days before the reallocation.
(d)	Notwithstanding subsection (a) of this section, MCNC shall allocate two million dollars ($2,000,000) for the 1992-93 fiscal year from its management reserve or from other available funds to link the University of North Carolina at Wilmington, North Carolina Central University, and Appalachian State University with the MCNC Communications Network.  The Board of Governors of The University of North Carolina shall allocate funds to provide the balance of funds needed to make the allocations required by this subsection.  The Board of Governors may make such allocations from receipts, grants, or other sources.  Allocations of funds required under this subsection shall be as follows:
For the University of North Carolina at Wilmington
(1)	$825,000 for capital improvements and equipment costs, and
For North Carolina Central University
(1)	$620,000 for capital improvements and equipment costs, and
For Appalachian State University
(1)	$850,000 for capital improvements and equipment costs.
If MCNC finds it necessary to make changes to program allocations specified in subsection (a)	of this section in order to make the allocations required under this subsection, then MCNC shall report these changes to the Joint Legislative Commission on Governmental Operations in accordance with subsection (c) of this section."

Requested by:  Representatives Ethridge, H. Hunter
HOME PROGRAM MATCHING FUNDS
Sec. 78.  (a) Section 225 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 225.  Funds appropriated in this act to the Department of Economic and Community Development for the federal HOME Program shall be used by the Department to match federal funds appropriated for the HOME Program.  In allocating State funds appropriated to match federal HOME Program funds, the Department shall give priority to HOME Program projects, as follows:
(1)	First priority to projects that are located in counties designated as severely distressed counties under G.S. 105-130.40(c) or G.S. 105-151.17(c); and
(2)	Second priority to projects that benefit persons and families whose incomes are fifty percent (50%) or less of the median family income for the local area, with adjustments for family size, according to the latest figures available from the U.S. Department of Housing and Urban Development.
The Department of Economic and Community Development shall report to the General Assembly by April 1, 1993, concerning the status of the 1992 and 1993 HOME Programs and shall include in the report information on priorities met, types of activities funded, and types of activities not funded."
(b) Funds appropriated in this act to match federal HOME Program funds shall not revert to the General Fund on June 30, 1993.

Requested by:  Representatives Ethridge, H. Hunter
PETROLEUM OVERCHARGE FUNDS ALLOCATION
Sec. 79.  Section 223 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 223.  (a)	The funds and interest thereon received from the case of United States v. Exxon are deposited in the Special Reserve for Oil Overcharge Funds.  There is appropriated from the Special Reserve to the Department of Economic and Community Development the sum of ten million nine hundred thousand dollars ($10,900,000) for the 1991-92 fiscal year and the sum of six million one thousand five hundred eleven dollars ($6,001,511) for the 1992-93 fiscal year to be allocated as follows:
(1)	$2,200,000 for the 1991-92 fiscal year and $1,200,302 for the 1992-93 fiscal year shall be used for projects under the State Energy Conservation Plan and Energy Extension Service Program:
(2)	$2,500,000 for the 1991-92 fiscal year and $1,380,348 for the 1992-93 fiscal year shall be used for energy conservation programs for hospitals and schools:
(3)	$3,200,000 for the 1991-92 fiscal year and $2,158,048 for the 1992-93 fiscal year shall be used for the Low Income Weatherization Program:
(4)	$3,000,000 for the 1991-92 fiscal year and $1,262,813 for the 1992-93 fiscal year shall be used for the Low Income Home Energy Assistance Program (LIHEAP).
(b)	There is appropriated from the funds and interest thereon received from the United States Department of Energy's Stripper Well Litigation (MDL378) which remain in the Special Reserve for Oil Overcharge Funds to the Department of Economic and Community Development the sum of four million eight hundred ninety-eight thousand four hundred eighty-nine dollars ($4,898,489) for the 1992-93 fiscal year to be allocated as follows:
(1)	$999,698 shall be used for projects under the State Energy Conservation Plan and Energy Extension Service Program;
(2)	$1,119,652 shall be used for energy conservation programs for hospitals and schools; and
(3)	$2,779,139 shall be used for the Low Income Weatherization Program.
			(c)	Any funds remaining in the Special Reserve for Oil Overcharge Funds after the allocations made pursuant to subsections (a) and (b) of this section may be expended only as authorized by the General Assembly.  All interest or income accruing from all deposits or investments of cash balances shall be credited to the Special Reserve for Oil Overcharge Funds.
(d)	The funds and interest thereon received from the Diamond Shamrock Settlement which remain in a reserve in the Office of State Budget and Management for the Division of Energy to administer the petroleum overcharge funds pursuant to Section 112 of Chapter 830 of the 1987 Session Laws shall continue to be available to the Division of Energy in the Department of Economic and Community Development on an as-needed basis.
(e)	The Department of Economic and Community Development shall submit comprehensive annual reports to the General Assembly by May 15, 1992, and January 31, l993, which detail the use of all petroleum overcharge funds.  Any State department or agency that has received petroleum overcharge funds shall provide all information requested by the Department of Economic and Community Development for the purpose of preparing these reports."

Requested by:  Representatives Ethridge, H. Hunter
MAIN STREET FUND RESTRICTIONS
Sec. 80.  Section 140(c) of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(c)	Notwithstanding G.S. 143B-472.35, the Department of Economic and Community Development shall transfer forty thousand dollars ($40,000) of interest earnings in the Main Street Financial Incentive Fund from the Fund to the General Fund for fiscal year 1992-93. The Department shall transfer funds pursuant to this subsection beginning July 1, 1992, in equal payments on a quarterly basis."

Requested by:  Representatives Ethridge, H. Hunter
COMMUNITY DEVELOPMENT BLOCK GRANT REPORTS
Sec. 81.  The Department of Economic and Community Development shall report on a quarterly basis beginning October 1, 1992, to the House Appropriations Subcommittee on Environment, Health, and Natural Resources on the Community Development Block Grant.  Each report shall include a listing and description of the most recent grant awards, the status of the administration of each component of the block grant, the current status of next year's program design, and a description of any proposed or necessary changes to the program design.

Requested by:  Representative H. Hunter
ECONOMIC DEVELOPMENT FUNDS
Sec. 82.  (a)	Of the funds appropriated in this act to the North Carolina Rural Economic Development Center, Inc., one million four hundred thousand dollars ($1,400,000) for the 1992-93 fiscal year, shall be allocated to local community development corporations.  These funds shall be used to support community economic development projects and activities within the State's minority community.
Of these funds, one million one hundred thousand dollars ($1,100,000) shall be available for direct grants to the local community development corporations that have previously received State funds for this purpose to support operations and project activities, one hundred thousand dollars ($100,000) shall be available for direct grants to local community development corporations that have not previously received State funds for this purpose to support operations and project activities, fifty thousand dollars ($50,000) shall be used for the Community Development Housing Counseling Demonstration Project, and one hundred fifty thousand dollars ($150,000) shall be a direct grant to the North Carolina Association of Community Development Corporations, to support project activities and to fund the North Carolina Association of Community Development Corporations' loan fund.  If funds allocated under this subsection for direct grants to community development corporations that have previously received State funds have not been committed for direct grants by the North Carolina Rural Economic Development Center by March 31, 1993, then such uncommitted funds shall be used for direct grants to community development corporations that have not previously received State funds.  The North Carolina Rural Economic Development Center, Inc., shall establish and implement performance-based criteria for determining which community development corporations will receive a grant and the grant amounts.
The North Carolina Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of the funds allocated in this subsection.
For purposes of this subsection, the term "community development corporation" means a nonprofit corporation:
(1)	Chartered pursuant to Chapter 55A of the General Statutes;
(2)	Tax-exempt pursuant to section 501(c)(3) of the Internal Revenue Code;
(3)	Whose primary mission is to develop and improve low-income communities and neighborhoods through economic and related development;
(4)	Whose activities and decisions are initiated, managed, and controlled by the constituents of those local communities; and
(5)	Whose primary function is to act as deal maker and packager of projects and activities that will increase their constituencies' opportunities to become owners, managers, and producers of small businesses, affordable housing, and jobs designed to produce positive cash flow and curb blight in the target community.
(b)	Of the funds appropriated in this act to the Office of State Budget and Management, three hundred thousand dollars ($300,000) for the 1992-93 fiscal year shall be allocated for the Land Loss Prevention Project, Inc., to provide free legal representation to low-income financially distressed small farmers.  The Land Loss Prevention Project, Inc., shall not use these funds to represent farmers who have income and assets that would make them financially ineligible for legal services pursuant to Title 45, Part 1611 of the Code of Federal Regulations.  The Land Loss Prevention Project, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(c)	Of the funds appropriated in this act to the Office of State Budget and Management, two hundred fifty thousand dollars ($250,000) for the 1992-93 fiscal year shall be allocated for the North Carolina Coalition of Farm and Rural Families, Inc., for its Small Farm Economic Development Project.  These funds shall be used to foster economic development within the State's rural farm communities by offering financial, marketing, and technical assistance to small and limited resource farmers.   The North Carolina Coalition of Farm and Rural Families, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(d)	Of the funds appropriated in this act to the Office of State Budget and Management, two hundred thousand dollars ($200,000) for the 1992-93 fiscal year shall be allocated to the North Carolina Institute for Minority Economic Development, Inc., to foster minority economic development within the State through policy analysis, information and technical assistance, and resource expansion.  The North Carolina Institute for Minority Economic Development, Inc., shall research and identify key issues affecting the economic well-being of the State's ethnic minority community and issue annual reports with appropriate recommendations; provide information and technical assistance to organizations with minority economic development-based projects in common areas of need and interests; develop a resource bank of data and information; facilitate training in appropriate areas of need; and provide technical assistance to minority construction contractors.  The North Carolina Institute for Minority Economic Development, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(e)  Of the funds appropriated in this act to the North Carolina Rural Economic Development Center, Inc., one hundred thousand dollars ($100,000) for the 1992-93 fiscal year shall be allocated to the North Carolina Minority Credit Union Support Center, Inc., for operational and administrative support.  The North Carolina Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(f)  Of the funds appropriated in this act to the North Carolina Rural Economic Development Center, Inc., six hundred fifty thousand dollars ($650,000) for the 1992-93 fiscal year shall be used to expand the Microenterprise Loan Program.  Of these funds, no less than four hundred thousand dollars ($400,000) shall be used as loan loss reserves and no more than two hundred fifty thousand dollars ($250,000) shall be used to cover operational costs. The North Carolina Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(g)  Of the funds appropriated in this act to the North Carolina Rural Economic Development Center, Inc., fifty thousand dollars ($50,000) for the 1992-93 fiscal year shall be used for its expenses in administering this section.   The Office of State Budget and Management shall allot the funds pursuant to subsections (e) and (f) of this section in increments of not less than two hundred thousand dollars ($200,000) and not more than three hundred twenty-five thousand dollars ($325,000) within 30 working days of the receipt of the Center's request for the funds.  The North Carolina Rural Economic Development Center, Inc., shall distribute the funds pursuant to subsections (e) and (f) of this section immediately upon allotment by the Office of State Budget and Management.
(h)  The Rural Economic Development Center, Inc., shall not distribute funds under subsections (a), (e), and (f) of this section unless and until the entities eligible for funds under these subsections have met the requirements of G.S. 143-6.1.

Requested by:  Representatives Ethridge, H. Hunter
NORTH CAROLINA TECHNOLOGICAL DEVELOPMENT AUTHORITY
Sec. 83.  Section 154.1(g) of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(g)	Effective September 1, 1991:
(1)	The below described land and improvements, formerly known as the 'Science and Technology Research Center', together with property installed in the building and other movable equipment and supplies shall be transferred by the State of North Carolina to The North Carolina Technological Development Authority, Inc.: BEGINNING at an iron pin located at North Carolina Grid Coordinate, north 783,348.879 east 2,041,863.310; runs thence South 9 degrees 17 minutes West 261.50 feet to an iron pin; runs thence North 67 degrees 54 minutes West 698 feet to an iron pipe; runs thence North 37 degrees 50 minutes East 48.50 feet to an iron pin; runs thence North 45 degrees 50 minutes East 340.00 feet to an iron pin; runs thence North 13 degrees 18 minutes East 345.72 feet to an iron pin in the southern line of Cornwallis Road; runs thence along the southern line of Cornwallis Road along a slight curve having a diameter of 4 degrees 00 minutes, a tangent of 411.55 feet to a radius of 1,432.69 feet a distance of 363.82 feet to an iron pin located in the southern line of Cornwallis Road; thence continuing along the southern line of Cornwallis Road South 65 degrees 52 minutes East 63.47 feet to a concrete monument; thence along the right of way of Cornwallis Road and Davis Drive South 26 degrees 42 minutes East 72.60 feet to a concrete monument; thence along the western line of the right of way of Davis Drive along a slight curve having a diameter of 1 degree 00 minutes a tangent of 351.27 feet and a radius of 5,730.34 feet a distance of 342.05 feet to an iron pin at the point and place of BEGINNING and containing 8 acres according to a deed recorded in the Office of the Register of Deeds of Durham County, North Carolina, in Book 30, pages 378-380.
(2)	The transfer made by this section shall be evidenced by a deed executed under G.S. 146-75 and registered in accordance with G.S. 146-77. The deed shall provide that the property transferred by this section shall automatically revert to the State of North Carolina if the property is used for any purposes other than the purposes set forth in subdivision (3).
(3)	The transfer made by this section is made on the condition that the North Carolina Technological Development Authority, Inc., shall use the property described in subdivision (1) solely as a business incubator serving technology research-based entrepreneurial companies in the Research Triangle Park.  If the North Carolina Technological Development Authority, Inc., ceases to use the property for the purposes described in this section, then the property shall automatically revert to the State of North Carolina. Use of the property described in subdivision (1) of this subsection pursuant to any prior instrument of occupancy in which the State of North Carolina is grantor of the property right and that is in force immediately prior to September 1, 1991, shall be deemed use of the property for purposes described in this section to the extent of use during the original term of the prior instrument of occupancy or any renewal or extension thereof."

PART 20.  DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Requested by:  Representatives Ethridge, H. Hunter
DEMONSTRATION PROJECT FOR VOLUNTARY REMEDIAL ACTIONS
Sec. 84.  (a)	During the 1992-93 fiscal year, the Secretary of the Department of Environment, Health, and Natural Resources may contribute from the Inactive Hazardous Sites Cleanup Fund up to ten percent (10%) of the cost, not to exceed fifty thousand dollars ($50,000) per site, of implementing a voluntary remedial action program at up to three high priority sites that substantially endanger public health or the environment. 
(b)	No later than April 1, 1993, the Department of Environment, Health, and Natural Resources shall report to the General Assembly.  This report shall contain the location of the sites for which a voluntary remedial action program was implemented, the rationale for the State contributing to the cost of the remedial action, the cost of the remedial action, and the amount of the contribution made from the Inactive Hazardous Sites Cleanup Fund.

Requested by:  Representatives Ethridge, H. Hunter
INCREASE USE OF SEDIMENTATION FEES
Sec. 85.  Section 226(b) of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(b)	If the revenues received pursuant to G.S. 113A-54.2 exceed the amount in anticipated revenues from this source for the 1991-92 fiscal year or the 1992-93 fiscal year, then the Department of Environment, Health, and Natural Resources may use up to one hundred forty thousand dollars ($140,000) of this revenue for the 1991-92 fiscal year and up to two hundred twenty thousand dollars ($220,000) of this revenue for the 1992-93 fiscal year for education, erosion control plan approval, and compliance activities in the Sedimentation Control Program, including salaries and necessary support, in the Division of Land Resources.  These funds are in addition to any other funds appropriated for this purpose."

Requested by:  Representatives Ethridge, H. Hunter
CLEAN AIR ACT PERMIT FEES
Sec. 86.  Section 228 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 228.  There is appropriated from the Title V nonreverting account established in G.S. 143-215.3A to the Department of Environment, Health, and Natural Resources the sum of nine hundred ninety-nine thousand eight hundred fifty-five dollars ($999,855) for the 1991-92 fiscal year and the sum of four million six hundred ninety-two thousand three hundred ninety dollars ($4,692,390) for the 1992-93 fiscal year to be used for the development and implementation of the Title V program in accordance with G.S. 143-215.3A; provided, however, if the revenues raised from Chapter 552 of the 1991 Session Laws are less than nine hundred ninety-nine thousand eight hundred fifty-five dollars ($999,855) for the 1991-92 fiscal year or are less than four million six hundred ninety-two thousand three hundred ninety dollars ($4,692,390) for the 1992-93 fiscal year, then the appropriation is reduced accordingly."

Requested by:  Representatives Ethridge, H. Hunter
USE OF FOOD AND LODGING FEES
Sec. 87.  If the revenues received pursuant to G.S. 130A-248(d) exceed the amount in anticipated revenues from this source for the 1992-93 fiscal year, then the Department of Environment, Health, and Natural Resources may use up to eleven thousand six hundred dollars ($11,600) of this revenue for the 1992-93 fiscal year for the restaurant and lodging fee collection program in accordance with G.S. 130A-248(d).  These funds are in addition to any other funds appropriated for this purpose.

Requested by:  Representatives Ethridge, H. Hunter
AUTHORIZE USE OF WATER QUALITY FEES
Sec. 88.  Section 158 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 158.  There is appropriated from the nonreverting account established in G.S. 143-215.3A to the Department of Environment, Health, and Natural Resources a sum not to exceed two million one hundred twenty-four thousand one hundred forty-two dollars ($2,124,142) for the 1991-92 fiscal year and a sum not to exceed two million six hundred thousand dollars ($2,600,000) for the 1992-93 fiscal year for the salaries and the necessary support for up to 49 positions for the 1991-92 fiscal year and for up to 59 positions for the 1992-93 fiscal year in the water quality program.  Water quality fees shall be the only source of funds for these positions and all necessary support.  These positions shall be used to reduce the backlog of permit applications and to improve the rate of compliance of facilities with environmental standards for toxic substances."

Requested by:  Representatives Ethridge, H. Hunter
OFFICE OF MINORITY HEALTH
Sec. 90.  The Office of Minority Health of the Department of Environment, Health, and Natural Resources for which funds have been appropriated in this act, shall have, but is not limited to, the following duties and responsibilities:
(1)	Develop public health policies that promote improvement in minority health status and minority access to public health services;
(2)	Develop monitoring, tracking, and reporting mechanisms for programs and services with minority health goals and objectives;
(3)	Provide periodic progress reports on the office and the advisory council activities to the Governor, the General Assembly, and the Secretary of the Department of Environment, Health, and Natural Resources;
(4)	Contact local health departments, community-based organizations, voluntary health organizations, and other public and private organizations statewide, on an ongoing basis, to learn more about their services to the minority communities, the health problems, and their ideas for improving minority health;
(5)	Promote local health department minority health services and community outreach by holding public meetings and community forums, and participating in community-sponsored activities;
(6)	Offer technical assistance and consultation to local health departments and community-based organizations in such areas as grant writing and conference planning;
(7)	Assist local health departments and community-based organizations in identifying potential funding sources and other community resources;
(8)	Promote communication across all State agencies that provide services to minority populations;
(9)	Improve methods for collecting and reporting data on minority health; and
(10)	Serve as a liaison to other states, the federal government, and national organizations.

Requested by: Representative H. Hunter
MINORITY HEALTH ADVISORY COUNCIL
Sec. 90.1.  Chapter 130A of the General Statutes is amended by adding the following new sections to read:
"§ 130A-33.43. Minority Health Advisory Council.
There is established the Minority Health Advisory Council in the Department of Environment, Health, and Natural Resources.  The Council shall have the following duties and responsibilities:
(1)	To make recommendations to the Governor and the Secretary of Environment, Health, and Natural Resources aimed at improving the health status of North Carolina's minority populations;
(2)	To identify and examine the limitations and problems associated with existing laws, regulations, programs and services related to the health status of North Carolina's minority populations;
(3)	To examine the financing and access to health services for North Carolina's minority populations;
(4)	To identify and review health promotion and disease prevention strategies relating to the leading causes of death and disability among minority populations; and
(5)	To advise the Governor and the Secretary of Environment, Health, and Natural Resources upon any matter which the Governor or Secretary may refer to  it.
"§ 130A-33.44.  Minority Health Advisory Council - members; selection; quorum; compensation.
(a)	The Minority Health Advisory Council in the Department of Environment, Health, and Natural Resources shall consist of 15 members to be appointed as follows:
(1)	Five members shall be appointed by the Governor. Members appointed by the Governor shall be representatives of the following: health care providers, public health, health related public and private agencies and organizations, community-based organizations, and human resources agencies and organizations.
(2)	Five members shall be appointed by the Speaker of the House of Representatives, two of whom shall be members of the House of Representatives, and at least one of whom shall be a public member.  The remainder of the Speaker's appointees shall be representative of any of the entities named in subdivision (1) of this section.
(3)	Five members shall be appointed by the President Pro Tempore of the Senate, two of whom shall be members of the Senate, and at least one of whom shall be a public member.  The remainder of the President Pro Tempore's appointees shall be representative of any of the entities named in subdivision (1) of this section.
(4)	Of the members appointed by the Governor, two shall serve initial terms of one year, two shall serve initial terms of two years, and one shall serve an initial term of three years.  Thereafter, the Governor's appointees shall serve terms of four years.
(5)	Of the nonlegislative members appointed by the Speaker of the House of Representatives, two shall serve initial terms of two years, and one shall serve an initial term of three years.  Thereafter, nonlegislative members appointed by the Speaker of the House of Representatives shall serve terms of four years.  Of the nonlegislative members appointed by the President Pro Tempore of the Senate, two shall serve initial terms of two years, and one shall serve an initial term of three years.  Thereafter, nonlegislative members appointed by the President Pro Tempore of the Senate shall serve terms of four years.  Legislative members of the Council shall serve two-year terms.
(b)	The Chairperson of the Council shall be elected by the Council from among its membership.
(c)	The majority of the Council shall constitute a quorum for the transaction of business.
(d)	Members of the Council shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138-5 or G.S. 138-6, or travel and subsistence expenses in accordance with the provisions of G.S. 120-3.1, as applicable.
(e)	All clerical support and other services required by the Council shall be provided by the Department of Environment, Health, and Natural Resources."

Requested by:  Representatives Ethridge, H. Hunter, McAllister
NON-MEDICAID REIMBURSEMENT
Sec. 91.  Section 172 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 172.  Providers of medical services under the various State programs other than Medicaid offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Environment, Health, and Natural Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days.  When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one of this section, the Department of Environment, Health, and Natural Resources may negotiate with providers of medical services under the various Environment, Health, and Natural Resources programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes:  contracts or agreements for medical services and purchases of medical equipment and other medical supplies.  These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs with the exception of Migrant Health, School Health, AIDS Drug Reimbursement Program, diagnostic assessment for infants with sickle cell syndrome, Women's Preventive Health, and Home Health shall be as follows:
	Family	 All 
	Size	Kidney	Other
1	$ 6,400	$ 4,200
2	  8,000	  5,300
3	  9,600	  6,400
4	 11,000	  7,500
5	 12,000	  7,900
6	 12,800	  8,300
7	 13,600	  8,800
8	 14,400	  9,300
The eligibility level each fiscal year for outpatient services for all clients and for inpatient services for children under the age of 5, 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 each fiscal year for outpatient services covered by the Sickle Cell 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."

Requested by:  Representatives Diamont, Ethridge, H. Hunter
INFANT MORTALITY PROGRAM FUNDS
Sec. 92. (a)	The Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, in conjunction with the Department of Human Resources, Division of Social Services, Division of Medical Assistance, and Office of Rural Health and Resource Development, the Child Fatality Task Force, and other relevant community groups, shall develop parenting education protocols which focus on the care of newborns, early growth and development, the importance of preventive health care services, early self-esteem, injury prevention, and stress reduction; and shall develop criteria for determining families at risk of child abuse and neglect for whom parenting education would be effective.
(b)	Of the funds appropriated in this act  to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, the sum of twenty-five thousand dollars ($25,000) for the 1992-93 fiscal year shall be used to cover the development costs of the parenting education protocols. The development shall include an investigation of currently available protocols, issues regarding their utilization, and methods of evaluation.
(c) Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, the sum of one hundred thousand dollars ($100,000) for the 1992-93 fiscal year shall be used to establish four comprehensive adolescent health care demonstration projects.  To receive funding, each project must arrange for or provide preventive and primary medical care, and mental health services, and shall be developed with the participation of the public schools, the health department, the area mental health programs, the community migrant and rural health centers, and private physicians.
(d) Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, the sum of fifty thousand dollars ($50,000) for the 1992-93 fiscal year shall be used to contract with The University of North Carolina Center on Early Adolescence to provide technical assistance and to evaluate the four projects, and to assist other counties in developing adolescent health care services.
(e)  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, Division of Epidemiology, the sum of nine hundred thousand dollars ($900,000) for the 1992-93 fiscal year shall be used to provide required childhood vaccinations to children cared for at community, migrant and rural health centers and to provide required vaccines for medically indigent, non-Medicaid eligible children seen in private physicians' offices, as defined in rules adopted by the Commission for Health Services.
(f)  Funds appropriated in this act to the Department of Environment, Health, and Natural Resources, Division of Maternal and Child Health, to inform the public on the dangers to the mother and developing fetus of alcohol, cocaine, and other substances, shall be used by the Department to support the activities of the FIRST STEP CAMPAIGN to inform the public about substance abuse and other high-risk behaviors that contribute to infant mortality and morbidity.
(g)  State funds appropriated for the Special Supplemental Food Program for Women, Infants, and Children may be used to contribute the required State match if federal funds become available for the WIC farmer's market project.

Requested by:  Representatives Diamont, Ethridge, H. Hunter
CHILD FATALITY TASK FORCE CHANGES
Sec. 93. (a) G.S. 143-577(b) reads as rewritten:
"(b)	The Task Force shall provide updated reports to the Governor and General Assembly within the first week of the convening of the 1993 General Assembly and within the first week of the convening of the 1994 Session of the 1993 General Assembly.  The Task Force shall provide a final report to the Governor and General Assembly within the first week of the convening of the 1995 General Assembly.  The final report shall include final conclusions and recommendations for each of the Task Force's duties, as well as any other recommendations for changes to any law, rule, and policy that it has determined will promote the safety and well-being of children.  Any recommendations of changes to law, rule, or policy shall be accompanied by specific legislative or policy proposals and detailed fiscal notes setting forth the costs to the State."
(b) G.S. 143-573(b) reads as rewritten:
"(b)	The Task Force shall be composed of 29 members, 12 of whom shall be ex officio members, three of whom shall be appointed by the Governor, seven of whom shall be appointed by the Speaker of the House of Representatives, and seven of whom shall be appointed by the President Pro Tempore of the Senate. The ex officio members other than the Chief Medical Examiner may designate representatives from their particular departments, divisions, or offices to represent them on the Task Force. The members shall be as follows:
(1)	The Chief Medical Examiner;
(2)	The Attorney General;
(3)	The Director of the Division of Social Services;
(4)	The Director of the State Bureau of Investigation;
(5)	The Director of the Division of Maternal and Child Health of the Department of Environment, Health, and Natural Resources;
(6)	The Director of the Governor's Youth Advocacy and Involvement Office;
(7)	The Superintendent of Public Instruction;
(8)	The President of the State Board of Education;
(9)	The Director of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services;
(10)	The Secretary of the Department of Human Resources;
(11)	The Secretary of the Department of Environment, Health, and Natural Resources;
(11.1)	The Director of the Administrative Office of the Courts;
(12)	A director of a county department of social services appointed by the Governor upon recommendation of the President of the North Carolina Association of County Directors of Social Services;
(13)	A representative from a Sudden Infant Death Syndrome counseling and education program appointed by the Governor upon recommendation of the Director of the Division of Maternal and Child Health of the Department of Environment, Health, and Natural Resources;
(14)	A representative from the North Carolina Child Advocacy Institute appointed by the Governor upon recommendation of the President of the Institute;
(15)	A representative from a private group, other than the North Carolina Child Advocacy Institute, that advocates for children, appointed by the Speaker of the House of Representatives upon recommendation of private child advocacy organizations;
(16)	A pediatrician, licensed to practice medicine in North Carolina, appointed by the Speaker of the House of Representatives upon recommendation of the North Carolina Pediatric Society;
(17)	A representative from the North Carolina League of Municipalities appointed by the Speaker of the House of Representatives upon recommendation of the League;
(18)	Two public members appointed by the Speaker of the House of Representatives;
(19)	A county or municipal law enforcement officer appointed by the President Pro Tempore of the Senate upon recommendation of organizations that represent local law enforcement officers;
(20)	A district attorney appointed by the President Pro Tempore of the Senate upon recommendation of the President of the North Carolina Conference of District Attorneys;
(21)	A representative from the North Carolina Association of County Commissioners appointed by the President Pro Tempore of the Senate upon recommendation of the Association; 
(22)	Two public members appointed by the President Pro Tempore of the Senate; and
(23)	Two members of the Senate appointed by the President Pro Tempore of the Senate and two members of the House of Representatives appointed by the Speaker of the House of Representatives."
(c) The Department of Environment, Health, and Natural Resources, State Center for Health and Environmental Statistics, shall conduct a study that investigates the role of family poverty on child death in North Carolina and shall develop a protocol for linking governmental agency data.
(d) Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, State Center for Health and Environmental Statistics, the sum of thirty-nine thousand six hundred fifty-seven dollars ($39,657) for the 1992-93 fiscal year shall be used to carry out the study authorized in subsection (c) of this section.

Requested by:  Representatives Ethridge, H. Hunter
PARKS RECEIPTS
Sec. 94.  The Department of Environment, Health, and Natural Resources shall use any overrealized receipts from the Division of Parks and Recreation's sale of pine straw, timber, or any other forest products for the maintenance of the State parks and State reservoirs.

Requested by:  Representatives Ethridge, H. Hunter
WILDLIFE RESOURCES COMMISSION LONG-RANGE BUDGET PLAN
Sec. 95. (a)	The Wildlife Resources Commission shall prepare a long-range budget plan for review and consideration by the General Assembly.  The budget plan shall include:
(1) 	An analysis of revenues and expenditures from the 1986-87 fiscal year through the 1991-92 fiscal year identifying: (i) the major revenue sources and expenditure items within each program or division; (ii) the major increases or decreases in revenues and expenditures over the period and the rationale for these changes; and (iii) those wildlife programs or divisions that have experienced significant growth in expenditures since the 1986-87 fiscal year; 
(2)	An inventory and analysis of all revenue sources, including the North Carolina Wildlife Endowment Fund, that identifies: (i) funds that may be used only for specific purposes; and (ii) funds that may be used for general program purposes;
(3)	Revenue and expenditure projections for the 1992-93 through 1996-97 fiscal years, by program and major budget objects; and
(4) 	Long-term options for funding the operations of the Wildlife Resources Commission, including: (i) revenue increases, including increased license fees, subscription fees, and registration fees; use of interest from the North Carolina Wildlife Endowment Fund; and increases in the General Fund from sales tax and any other General Fund monies; and (ii) operating and capital expenditure reductions.
(b)	The Wildlife Resources Commission shall prepare a report incorporating its long-range budget plan, including all components of this plan as set forth in subsection (a) of this section, and shall transmit this report to the General Assembly and the Fiscal Research Division by January 12, 1993.

PART 21.  MISCELLANEOUS PROVISIONS

Requested by:  Representatives Nesbitt, Diamont
EXECUTIVE BUDGET ACT APPLIES
Sec. 96.  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:  Representatives Nesbitt, Diamont
COMMITTEE REPORT
Sec. 97. (a)	The House Proposals For Modifying The Appropriations and Budget Revenue Act of 1991, dated June 9, 1992, As Amended, which was distributed in the House 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 these purposes shall be considered a part of this act.
(b) The line item budget enacted by the General Assembly for the maintenance of the various departments, institutions, and other spending agencies of the State for the 1991-93 fiscal biennium is described in Section 351 of Chapter 689 of the 1991 Session Laws, as amended by Section 8.1(d) of this act.   In this act, the General Assembly amended the budget enacted by the 1991 Regular Session of the General Assembly for the 1992-93 fiscal year by making modifications including the base budget cuts and expansion budget additions that are set out in the House Proposals For Modifying The Appropriation and Budget Revenue Act of 1991, dated June 9, 1992.  The line item detail in the budget enacted by the General Assembly for the 1992-93 fiscal year may be derived accordingly.
The budget modifications enacted by the General Assembly in this act shall also be interpreted in accordance with the special provisions in this act and in accordance with other appropriate legislation.

Requested by:  Representatives Nesbitt, Diamont
MOST TEXT APPLIES ONLY TO 1992-93
Sec. 98.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1992-93 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 1992-93 fiscal year.

Requested by:  Representatives Nesbitt, Diamont
1991-92 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 99.  (a) Except where expressly repealed or amended by this act, the provisions of Chapters 689 and 761 of the 1991 Session Laws remain in effect.
(b)	Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 1992-93 fiscal year in Chapters 689 and 761 of the 1991 Session Laws that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes.

Requested by:  Representatives Nesbitt, Diamont
EFFECT OF HEADINGS
Sec. 100.  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:  Representatives Nesbitt, Diamont
SEVERABILITY CLAUSE
Sec. 101.  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:  Representatives Nesbitt, Diamont
EFFECTIVE DATE
Sec. 102.  Except as otherwise provided, this act becomes effective July 1, 1992.