GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 1505*

Short Title:  Savings Reserve Acct. Changes.	(Public)
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Sponsors: Representatives Diamont, Nesbitt; Bowman and Warner.
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Referred to:  Appropriations.
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June 2, 1992

A BILL TO BE ENTITLED
AN ACT TO MAKE TECHNICAL CHANGES TO THE ACCOUNTING PROCEDURE FOR THE SAVINGS RESERVE ACCOUNT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 143-15.2 reads as rewritten:
"§ 143-15.2.  (Effective beginning with the General Fund credit balance at the end of the 1992-93 fiscal year) Use of General Fund credit balance.
The State Controller shall reserve up to one-fourth of any credit balance, as determined on a cash basis, remaining in the General Fund at the end of each fiscal year to the Savings Reserve Account as provided in G.S. 143-15.3.  The General Assembly may appropriate that part of the anticipated General Fund credit balance not expected to be reserved to the Savings Reserve Account only for capital improvements or other one-time expenditures."
Sec. 2.  G.S. 143-15.3 reads as rewritten:
"§ 143-15.3.  (Effective beginning with the General Fund credit balance at the end of the 1992-93 fiscal year) Savings Reserve Account.
(a)	There is established a Savings Reserve Account as a restrictive reserve in the General Fund.  The State Controller shall reserve to the Savings Reserve Account one-fourth of any unreserved credit balance remaining in the General Fund at the end of each fiscal year until the account contains funds equal to five percent (5%) of the amount appropriated the preceding year for the General Fund operating budget, including local government tax reimbursements and local government tax-sharing funds.  If the balance in the Savings Reserve Account falls below this level during a fiscal year, the the State Controller shall reserve to the Savings Reserve Account for the following fiscal years up to one-fourth of any unreserved credit balance remaining in the General Fund at the end of each fiscal year until the account again equals five percent (5%) of the amount appropriated the preceding year for the General Fund operating budget, including local government tax reimbursements and local government tax-sharing funds.  As used in this section, the term 'unreserved credit balance' means that part of the credit balance, as determined on a cash basis, not already reserved to the Savings Reserve Account.
(b)	The Director may not use funds in the Savings Reserve Account unless the use has been approved by an act of the General Assembly."
Sec. 3.  This act is effective upon ratification and applies beginning with the General Fund credit balance at the end of the 1992-93 fiscal year.