GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 83*

Short Title:  Current Operations - 1991.	(Public)
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Sponsors: Representatives Nesbitt and Diamont.
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Referred to:  Appropriations.
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February 18, 1991

A BILL TO BE ENTITLED
AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
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 1991."

PART I.––-CURRENT OPERATIONS/GENERAL FUND

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 biennium ending June 30, 1993, according to the following schedule:

Current Operations-General Fund	1991-92	 1992-93

General Assembly	$   19,089,704 $   22,376,882 

Judicial Department	208,483,793 216,310,516 

Department of the Governor
01.	Office of the Governor	4,748,813 4,918,492 
02.	Office of State Budget
and Management	3,504,527 3,628,685 

Lieutenant Governor's Office	575,252 597,602 

Department of Secretary of State	4,587,853 4,268,945 

Department of State Auditor	13,108,626 13,469,632 

Department of State Treasurer	4,805,567 4,936,507 

Department of Public Education	3,375,306,770 3,529,808,253

Department of Justice	49,237,479 50,764,142 

Department of Administration
01.	Administration	53,063,445 58,370,962 
02.	State Controller	5,240,049 5,382,588 

Department of Agriculture	40,911,298 41,590,201 

Department of Labor	8,866,599 9,343,565 

Department of Insurance	14,263,611 14,655,656 

Department of Transportation
01.	Aeronautics	8,614,832 8,600,000 
02.	Aid to Railroads	97,343 100,000 

Total Department of
Transportation	8,712,175 8,700,000 

Department of Environment, Health, and
Natural Resources	174,601,179 181,362,674 

Office of Administrative Hearings	1,291,507     -     

Administrative Rules Review Commission	256,437 263,136 

Department of Human Resources
01.	Alcohol Drug Abuse Treatment Center - 
Black Mountain	3,728,655 3,742,978 
02.	Alcohol Drug Abuse Treatment Center - 
Butner	3,405,627 3,433,270 
03.	Alcohol Drug Abuse Treatment Center - 
Greenville	3,370,005 3,394,831 
04.	N.C. Special Care Center	1,986,362 2,036,325 
05.	Black Mountain Center	2,048.549 2,321,237 
06.	DHR - Secretary	11,387,495 11,404,323
07.	Division of Aging	9,946,108 9,950,099 
08.	DHR Reserve Management
Flexibility	(54,240,803) (27,308,766)
09.	Jordan Adam Inflationary
Reserve	2,517,464 5,358,003
10.	Schools for the Deaf and
Hard of Hearing	19,899,052 20,032,020 
11.	Social Services	134,585,941 147,456,380 
12.	Medical Assistance	559,343,044 642,588,707 
13.	Social Services-State Aid to
Non-State Agencies	6,086,629 6,086,629 
14.	Division of Services for the
Blind	12,669,298 12,806,361 
15.	Division of Mental Health,
Developmental Disabilities and
Substance Abuse Services	196,035,848 201,095,503 
16.	Dorothea Dix Hospital	38,996,347 39,578,585 
17.	Broughton Hospital	35,148,843 35,400,852 
18.	Cherry Hospital	34,376,538 34,363,882 
19.	John Umstead Hospital	34,954,726 35,070,552 
20.	Western Carolina Center	4,016,329 4,295,382 
21.	O'Berry Center	4,387,712 4,646,518 
22.	Murdoch Center	11,572,244 9,469,011 
23.	Caswell Center	11,056,573 11,486,663 
24.	Division of Facility Services	30,625,574 31,637,776 
25.	Division of Vocational
Rehabilitation Services	24,196,018 24,029,585 
26.	Division of Youth Services	47,463,290 47,516,801 
Total Department of
Human Resources	1,189,563,468 1,321,893,507 

Department of Correction	479,105,008 516,270,120 

Department of Economic and Community
Development
01.	Economic and Community
Development	40,262,108 47,283,601 
02.	Biotechnology Reserve	7,600,080 7,807,547 
03.	MCNC	16,000,000 16,000,000 

Department of Revenue	54,319,304 55,801,919 

Department of Cultural Resources	39,556,043 41,087,504 

Department of Crime Control
and Public Safety	28,531,841 29,798,591 

University of North Carolina - Board
of Governors
01.	General Administration	18,392,843 18,566,855 
02.	University Institutional
Program	(25,077,615) 5,861,534 
03.	Related Educational Programs	45,585,686 45,585,686 
04.	University of North Carolina
at Chapel Hill
a.  Academic Affairs	143,159,812 143,505,017 
b.  Health Affairs	103,552,103 105,556,271 
c.  Area Health Education
    Centers	33,044,776 33,046,383 
05.	North Carolina State University
at Raleigh
a.  Academic Affairs	179,727,326 179,748,609 
b.  Agricultural Research
    Service	38,061,107 38,090,850 
c.  Agricultural Extension
    Service	30,024,297 29,995,347 
06.	University of North Carolina at
Greensboro	56,896,167 57,022,806 
07.	University of North Carolina at
Charlotte	58,167,938 58,172,019 
08.	University of North Carolina at
Asheville	17,090,356 17,142,040 
09.	University of North Carolina at
Wilmington	33,297,757 33,301,127 
10.	East Carolina University
a.  Academic Affairs	74,825,845 74,829,617 
b.  Division of Health Affairs	48,637,865 48,637,865 
11.	North Carolina Agricultural and
Technical State University	37,504,609 37,455,661 
12.	Western Carolina University	36,389,990 36,381,484 
13.	Appalachian State University	54,431,332 54,431,332 
14.	Pembroke State University	16,423,217 16,403,697 
15.	Winston-Salem State University	16,390,659 16,422,114 
16.	Elizabeth City State
University	15,393,904 15,390,379 
17.	Fayetteville State University	17,572,505 17,772,144 
18.	North Carolina Central
University	27,675,045 27,755,995 
19.	North Carolina School of the
Arts	8,673,320 8,675,654 
20.	North Carolina School of
Science and Mathematics	7,462,382 7,445,132 
21.	UNC Hospitals at Chapel Hill	31,545,026 39,845,427 
Total University of North
Carolina	1,124,848,252 1,167,041,045 

Department of Community
Colleges	397,105,315 419,962,865 

State Board of Elections	1,782,744 431,570 

Contingency and Emergency	1,062,253 1,091,250 

Reserve for Compensation Increase	27,000,000 66,000,000 

Reserve for Lowest Paid Employees	730,071 750,000 

Reserve for Reduced Salary Reserves	(2,270,000) (2,270,000) 

Reserve for Reduction in Retirement and
Disability Employer Contribution	(53,000,000) (53,000,000) 

Debt Service	77,528,270 86,049,578 

Local Government Shared Revenue	231,924,219 238,493,897 

Reserve for Budget Stabilization	    95,000,000      70,000,000  

GRAND TOTAL CURRENT OPERATIONS–
GENERAL FUND	$7,747,303,660 $8,201,241,432 

PART II.––-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 biennium ending June 30, 1993, according to the following schedule:
Current Operations-Highway Fund	1991-92	 1992-93

Department of Transportation
01.	Administration	$   36,440,387 $   35,604,297 
02.	Division of Highways
a.	Administration and
Operations	33,403,236 33,462,378 
b.	State Construction
(01)	Primary Construction	    -       -   
(02)	Secondary 
Construction	66,121,926 66,717,023 
(03)	Urban Construction	20,000,000 20,000,000 
(04)	Access and Public
Service Roads	2,000,000 2,000,000 
(05)	Special Appropriation
for Highways	742,465 742,465 
(06)	Spot Safety
Improvements	9,100,000 9,100,000 
c.	State Funds to Match Federal
Highway Aid
(01)	Construction	75,992,066 75,992,066 
(02)	Planning Survey and Highway
Planning Research	2,959,649 2,959,649 
d.	State Maintenance
(01)	Primary	96,090,383 88,399,617 
(02)	Secondary	169,296,877 155,779,771 
(03)	Urban	25,498,959 23,401,477 
(04)	Contract Resurfacing	100,000,000 102,500,000 
e.	Ferry Operations	16,547,896 16,547,896 
03.	Division of Motor Vehicles	76,888,878 76,853,837 
04.	Governor's Highway Safety Program	290,279 290,617 
	05.	State Aid to Municipalities	66,121,926 66,717,023 
06.	State Aid for Public
Transportation	5,038,766 5,046,001 
07.	Salary Adjustments for Highway
Fund Employees	200,000 200,000 
08.	Reserve to Correct Occupational
Safety and Health Conditions	500,000 500,000 
09.	Reserve to Continue DOT
Merit Salary Increases	4,510,383 4,510,383 
10.	Reserve for Performance Pay	3,400,000 6,800,000 
11.	Reserve for Emergencies and
Inflationary Adjustments	6,000,000 11,000,000 
12.	Debt Service	38,227,230 38,018,250 

Appropriations for Other State Agencies
01.	Crime Control and Public
Safety	87,190,315 88,681,046 
02.	Other Agencies
a.	Department of Agriculture	2,892,001 2,790,013 
b.	Department of Revenue	1,921,279 1,923,941 
	c.	Department of Environment,
Health and Natural
Resources:
LUST Trust Fund	5,186,720 5,586,046
Chemical Test Program	380,176 380,176
d.	Department of Correction	2,316,928 2,316,928 
Contingency and Emergency Fund	    100,000     100,000  

GRAND TOTAL CURRENT OPERATIONS–
HIGHWAY FUND	$  955,358,725 $  944,920,900 

PART III.––GENERAL PROVISIONS

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

Sec. 5.  There is appropriated out of the cash balances, federal receipts, and departmental receipts available to each department, sufficient amounts to carry on authorized activities included under each department's operations.  All these cash balances, federal receipts, and departmental receipts shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by statute.  The Director of the Budget shall develop necessary budget controls, regulations, and systems to ensure that these funds and other State funds subject to the Executive Budget Act, may not be spent in a manner which would cause a deficit in expenditures.
Pursuant to G.S. 143-34.2, State departments, agencies, institutions, boards, or commissions may make application for, receive, or disburse any form of non-State aid.  All non-State monies received shall be deposited with the State Treasurer unless otherwise provided by State law.  These funds shall be expended in accordance with the terms and conditions of the fund award that are not contrary to the laws of North Carolina.

––INSURANCE AND FIDELITY BONDS

Sec. 6.  All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Insurance Department, and the cost of placement shall be paid by the affected department, institution, or agency with the approval of the Insurance Commissioner.

PART IV.––-PUBLIC SCHOOLS

––-SMALL COUNTY SCHOOL SYSTEM SUPPLEMENTAL FUND

Sec. 7.  Funds are appropriated to the Department of Public Education in Section 3 of this act to assist small county school systems in providing a comprehensive education program.  Small county school systems are defined as systems with 3,000 or fewer students in final average daily membership for the prior school year.  These funds may be used to increase school level staffing and for additional instructional supplies and equipment.  Funds are to be allocated to local county school systems based on a formula adopted by the State Board of Education.

––-PURCHASE OF BUSES IN LIEU OF CONTRACT TRANSPORTATION

Sec. 8.  Funds appropriated to the Department of Public Education for the 1991-93 biennium for contract transportation to serve exceptional children who are unable because of their handicap to ride the regular school buses may be used by local boards of education for the purchase of buses and minibuses as well as for the purposes authorized in this act.  These funds shall be expended in accordance with rules adopted by the State Board of Education.

––-TEACHER SALARY SCHEDULE

Sec. 9.  Funds are appropriated to the Department of Public Education in Section 3 of this act to provide experience increments for teacher to move up one year on the teacher salary schedules which were in effect in 1990-91.  The teacher salary schedules for 1991-92 would be the same as the schedules for 1990-91.  Individual teachers would move up one year in the experience rating based on rules adopted by the State Board of Education.

––-DEPARTMENT OF PUBLIC INSTRUCTION REDUCTION

Sec. 10.  Funds appropriated to the Department of Public Education in Section 3 of this act reflect a permanent reduction of $1,500,000 for operating expenses for the Department of Public Instruction.  The Department of Public Instruction is to identify specific positions and support expenses to be deleted from the budget prior to July 1, 1991.

––-FUNDING FOR LOCAL CITY SCHOOL SYSTEMS

Sec. 11.  Funds appropriated to the Department of Public Education in Section 3 of this act reflect a permanent reduction in the State funding provided to local city school systems.  Position of superintendents, associate/assistant superintendents, and maintenance supervisors will be limited to county systems.  If any county wishes to continue having multiple systems within that county, the county will be responsible for the funding of these positions.  State funding for positions based on student average daily membership will not be affected.

––-NORTH CAROLINA GEOGRAPHIC ALLIANCE NETWORK FUNDS

Sec. 12.  Of the funds appropriated to the Department of Public Education for the 1991-92 fiscal year and the 1992-93 fiscal year for aid to local school administrative units, the State Board of Education may use up to $50,000 per year to fund the North Carolina Geographic Alliance Network Program, which is headquartered at East Carolina University.  The funds shall be used to:
(1)	Increase communication and cooperation between the professional geographic community and the network of Regional Education Centers;
(2)	Increase the number of in-service workshops conducted by professional geographers for the Regional Education Centers and local education agencies;
(3)	Increase the membership of professional geographers in the North Carolina Council for Social Studies;
(4)	Increase the number of professional geographers doing sessions at the annual meetings of the North Carolina Council for Social Studies;
(5)	Increase advisory interaction of professional geographers with the North Carolina Board of Education with regard to geography in the curriculum; and
(6)	Increase involvement of public school teachers with the North Carolina Geographic Society.

––-CITIES-IN-SCHOOLS CONTRACT AUTHORIZATION

Sec. 13.  Notwithstanding the provisions of G.S. 143-16.3, the Department of Public Education may contract with the Cities-in-Schools Dropout Prevention programs in North Carolina to provide technical assistance to local education agencies in coordinating public-private partnerships in dropout prevention programs.

PART V.––-COMMUNITY COLLEGES

––-OPERATING APPROPRIATIONS/NOT USED FOR RECREATION EXTENSION

Sec. 14.  Funds appropriated in Section 3 of this act to the Department of Community Colleges as operating expenses for allocation to the institutions comprising the Community College System may not be used to support recreation extension courses.  The financing of these courses by any institution shall be on a self-supporting basis, and membership hours produced from these activities may not be counted when computing full-time equivalent students for use in budget-funding formulas at the State level.

––-ASSISTANCE TO HOSPITAL NURSING/FUND DISTRIBUTION

Sec. 15.  Funds appropriated in Section 3 of this act to the Department of Community Colleges to provide financial assistance to hospital programs of nursing education leading to diplomas in nursing that are fully accredited by the North Carolina Board of Nursing and operated under the authority of a public or nonprofit hospital licensed by the North Carolina Medical Care Commission shall be distributed, upon application for financial assistance, on the basis of eight hundred fifty dollars ($850.00) for each full-time student duly enrolled in the program as of December 1 of the preceding year and on condition that accreditation is maintained.  The State Board of Community Colleges shall adopt rules to ensure that this financial assistance is used directly for faculty and instructional needs of diploma nursing programs.

––-FULL-TIME EQUIVALENT TEACHING POSITIONS/COMMUNITY COLLEGES

Sec. 16.  For the purpose of determining the community college system-wide number of full-time equivalent (FTE) teaching positions each year, the total curriculum full-time equivalent student enrollment shall be divided by 21, and occupational extension full-time equivalent student enrollment shall be divided by 22.

––-TUITION/PUBLIC SCHOOL STUDENTS TAKING COMMUNITY COLLEGE COURSES

Sec. 17.  High school students enrolled in a community college in accordance with G.S. 115D-20(4) and G.S. 115D-5 shall be exempt from tuition for community college courses taken in accordance with these two sections.

––-WORKFORCE PREPAREDNESS

Sec. 18.  Funds in the amount of $40,000,000 for fiscal year 1991-92 and $60,000,000 for fiscal year 1992-93 are appropriated in Section 3 of this act to implement, insofar as possible, the recommendations of the Governor's Commission on Workforce Preparedness.  The funds are appropriated as follows:
	1991-92	1992-93
Department of Public Instruction	$ 3,000,000 $ 4,500,000
Department of Community Colleges	25,400,000 38,100,000
Department of Economic and
Community Development	11,520,000 17,280,000
Office of the Governor	     80,000     120,000
Total	$40,000,000 $60,000,000

(a)	The Workforce Preparedness funds appropriated to the Department of Public Instruction are to be used to improve the academic, thinking and employability skills of the future workforce by:
(1)	Expanding the "Technical Preparation" (TECH-PREP) curriculum to both those high schools and community colleges approaching the implementation phase of the program and to those local school systems and community colleges which have need to begin the planning process for Tech-Prep programs.
(2)	Certifying that every high school graduate has mastered certain basic skills for continued learning in the workplace and higher education through an examination process tied more closely to the curriculum.
(3)	Within each high school seek to establish a "Comprehensive Career Development and Guidance Program" in order that students can make curriculum choices based upon their abilities and interests and ultimately a career.
(b)	The Workforce Preparedness funds appropriated to the Department of Community Colleges are to be used to:
(1)	Substantially upgrade funding for post-secondary technical training systems by addressing the following:
a.	Implement the recommendations of the "Commission on the Future" with regard to restoration funding by increasing the per pupil funding level as much as possible toward the national median.
b.	Increase funding for faculty and staff development to upgrade technical knowledge, improve methods and quality of instruction, and improve management and accountability.
(2)	Improve training services to the State's more traditional industries, thereby upgrading the skills of the existing workforce as industry responds to technology changes, by expanding the number of and enhancing the funding for Focused Industrial Training (FIT) centers.
(3)	Improve the training capacity of community colleges system-wide by increasing funding for both new and replacement equipment.
(4)	In as much as possible seek to establish industry-focused Technical Training and Development Centers involving partnerships with business and industry to conduct applied training research, develop skill assessment methods, develop training programs and materials, train faculty, and provide technical assistance in skills development.
(5)	Substantially upgrading funding for literacy education by addressing the following:
a.	Expanding workplace and family literacy programs.
b.	Expanding prison inmate literacy programs.
c.	Reforming Literacy Education.
d.	Expanding Human Resource Development Programs.
e.	Aggressively reaching out to new populations and geographic areas.
(c)	The Workforce Preparedness funds appropriated to the Department of Economic and Community Development are to be used for:
(1)	Providing funds to develop a North Carolina jobs training program modeled upon the current Job Training Partnership Act (JTPA) to serve more of the eligible population, particularly in training the disadvantaged and undereducated.  Toward this end the local Private Industry Councils (PIC's) may use the funds for:
a.	Supportive services such as child care and transportation.
b.	Training education programs targeted to at risk youth.
c.	Training programs targeted to the working poor.
(2)	Upgrading the Labor Market Information System within the Employment Security Commission.
(d)	The Workforce Preparedness funds appropriated to the Office of the Governor are to be used to provide support to the State Job Training Coordinating Council (to be renamed "The Council on Workforce Preparedness" ) to:
(1)	Set and communicate State goals for workforce preparedness to other appropriate councils, commissions and boards;
(2)	Review, monitor and assess progress in meeting State goals;
(3)	Promote development of strategic planning for local labor market areas through Private Industry Councils; and
(4)	Develop biennially, working with all appropriate departments, agencies, councils and boards, a strategic plan for workforce preparedness.

PART VI.–––COLLEGES AND UNIVERSITIES

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

Sec. 19.  (a)	The amount of a tuition grant awarded to a student enrolled in a degree program at a site away from the main campus of the approved private institution, as defined in G.S. 116-22(1), may be no more than the result of the ratio of the cost per credit hour for off-campus instruction at that site to the cost per credit hour for regular, full-time on-campus instruction, multiplied by the maximum grant award.
(b)	No Legislative Tuition Grant funds may be expended for a program at an off-campus site of a private institution, as defined in G.S. 116-22(1), established after May 15, 1987, unless (i) the private institution offering the program has previously notified and secured agreement from other private institutions operating degree programs in the county in which the off-campus program is located or operating in the counties adjacent to that county or (ii) the degree program is neither available nor planned in the county with the off-campus site or in the counties adjacent to that county.
An "off-campus program" is any program offered for degree credit away from the institution's main, permanent campus.
(c)	Any member of the armed services as defined in G.S. 116-143.3(a), abiding in this State incident to active military duty, who does not qualify as a resident for tuition purposes as defined under G.S. 116-143.1, is eligible for a Legislative Tuition Grant pursuant to this section if the member is enrolled as a full-time student.  The member's Legislative Tuition Grant may not exceed the cost of tuition less any tuition assistance paid by the member's employer.

––-AID TO PRIVATE COLLEGES PROCEDURE

Sec. 20.  (a)	Funds appropriated in this act to the Board of Governors of The University of North Carolina for aid to private colleges shall be disbursed in accordance with the provisions of G.S. 116-19, G.S. 116-21, and G.S. 116-22.  These funds shall provide up to four hundred fifty dollars ($450.00) per full-time equivalent North Carolina undergraduate student enrolled at a private institution as of October 1 each year.
These funds shall be placed in a separate, identifiable account in each eligible institution's budget or chart of accounts.  All funds in this account shall be provided as scholarship funds for needy North Carolina students during the fiscal year.  Each student awarded a scholarship from this account shall be notified of the source of the funds and of the amount of the award.  Funds not utilized under G.S. 116-19 shall be for the tuition grant program as defined in subsection (b) of this section.
(b)	In addition to any funds appropriated pursuant to G.S. 116-19 and in addition to all other financial assistance made available to private educational institutions located within the State, or to students attending these institutions, there is granted to each full-time North Carolina undergraduate student attending an approved institution as defined in G.S. 116-22, a sum, not to exceed one thousand one hundred fifty dollars ($1,150) per academic year, which shall be distributed to the student as hereinafter provided.
The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section.  The State Education Assistance Authority may not approve any grant until it received proper certification from an approved institution that the student applying for the grant is an eligible student.  Upon receipt of the certification, the State Education Assistance Authority shall remit at such times as it shall prescribe the grant to the approved institution on behalf, and to the credit, of the student.
In the event a student on whose behalf a grant has been paid is not enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority.  Each approved institution shall be subject to examination by the State Auditor for the purpose of determining whether the institution has properly certified eligibility and enrollment of students and credited grants paid on the behalf of the students.
In the event there are not sufficient funds to provide each eligible student with a full grant:
(1)	The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2)	Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
Any remaining funds shall revert to the General Fund.
(c)	Expenditures made pursuant to this section may be used only for secular educational purposes at nonprofit institutions of higher learning.

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

Sec. 21.  Funds appropriated in this act to the Board of Governors of The University of North Carolina for continuation of financial assistance to the medical schools of Duke University and Wake Forest University shall be disbursed on certifications of the respective schools of medicine that show the number of North Carolina residents as first-year, second-year, third-year, and fourth-year students in the medical school as of November 1, 1991, and November 1, 1992.  Disbursement to Wake Forest University shall be made in the amount of eight thousand dollars ($8,000) for each medical student who is a North Carolina resident, one thousand dollars ($1,000) of which shall be placed by the school in a fund to be used to provide financial aid to needy North Carolina students who are enrolled in the medical school.  The maximum aid given to any student from this fund in a given year may not exceed the amount of the difference in tuition and academic fees charged by the school and those charged at the School of Medicine at the University of North Carolina at Chapel Hill.
Disbursement to Duke University shall be made in the amount of five thousand dollars ($5,000) for each medical student who is a North Carolina resident, five hundred dollars ($500.00) of which shall be placed by the school in a fund to be used to provide student financial aid to financially needy North Carolina students who are enrolled in the medical school.  No individual student may be awarded assistance from this fund in excess of two thousand dollars ($2,000) each year.  In addition to this basic disbursement for each year of the biennium, a disbursement of one thousand dollars ($1,000) shall be made for each medical student who is a North Carolina resident in the first-year, second-year, third-year, and fourth-year classes to the extent that enrollment of each of those classes exceeds 30 North Carolina students.
The Board of Governors shall establish the criteria for determining the eligibility for financial aid of needy North Carolina students who are enrolled in the medical schools and shall review the grants or awards to eligible students.  The Board of Governors shall adopt rules for determining which students are residents of North Carolina for the purposes of these programs.  The Board shall also make any regulations as necessary to ensure that these funds are used directly for instruction in the medical programs of the schools and not for religious or other nonpublic purposes.  The Board shall encourage the two schools to orient students towards personal health care in North Carolina giving special emphasis to family and community medicine.

––-UNIVERSITY OF NORTH CAROLINA HOSPITALS AT CHAPEL HILL/NURSING

Sec. 22.  Notwithstanding the provisions of G.S. 126-4(1), G.S. 126-4(2), and Section 9 of Chapter 738 of the 1987 Session Laws, as amended by Section 100(a) of the 1987 Session Laws, and as further amended by Section 54 of Chapter 500 of the 1989 Session Laws, the Current Operations Appropriations Act of 1989, the Board of Directors of the University of North Carolina Hospitals at Chapel Hill shall establish policies and rules governing the performance of competitive position classification studies and competitive compensation plan studies and the implementation of competitive classification and compensation plans for clinical nursing employees.  These plans shall provide for minimum, maximum, and intermediate rates of pay, and may include provisions for range revisions and shift premium pay and for salary adjustments to address internal inequities and job performance.  The Office of State Personnel shall review the classification and compensation plans on an annual basis, and all changes in compensation plans for clinical nursing employees shall be submitted to the Office of State Personnel upon implementation.

––-UNC OVERHEAD RECEIPTS POLICY REVISION

Sec. 23.  Chapter 936 of the 1989 Session Laws is hereby amended by deleting Section 2, paragraph (b) and inserting in lieu thereof the following paragraph:
"(b)	The base or continuation budget requests of the constituent institutions of The University of North Carolina presented to the 1993 General Assembly shall reflect a phased reduction in such offsets during the 1993-95 biennium.  For the 1993-94 fiscal year this reduction shall lower the offset rate from thirty percent (30%) to twenty-five percent (25%), and for the 1994-95 fiscal year this reduction shall lower the offset rate from twenty-five percent (25%) to twenty percent (20%)."

PART VII.––-DEPARTMENT OF ADMINISTRATION

––-COUNCIL OF GOVERNMENTS FUNDS

Sec. 24.  (a)	Of the funds appropriated by Section 3 of this act to the Department of Administration, the sum of nine hundred sixty thousand three hundred dollars ($960,300) for 1991-92 fiscal year and nine hundred sixty thousand three hundred dollars ($960,300) for 1992-93 fiscal year shall only be used as provided by this section.  Each regional council of government or lead regional organization is allocated an amount up to fifty-three thousand three hundred fifty dollars ($53,350) each fiscal year, with the actual amount calculated as  provided in subsection (b) of this section.
(b)	The funds shall be allocated as follows:  A share of the maximum fifty-three thousand three hundred fifty dollars ($53,350) each fiscal year shall be allocated to each county and smaller city based on the most recent annual estimate of the Office of State Budget and Management of the population of that county (less the population of any larger city within that county) or smaller city, divided by the sum of the total population of the region (less the population of larger cities within that region) and the total population of the region living in smaller cities.  Those funds shall be paid to the regional council of government for the region in which that city or county is located upon receipt by the Department of Administration of a resolution of the governing board of the county or city requesting release of the funds.  If any city or county does not so request payment of funds by June 30 of a State fiscal year, that share of the allocation for that fiscal year shall revert to the General Fund.
(c)	A council of governments may use funds appropriated by this section only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, and other activities as deemed appropriate by the member governments.
(d)	Funds appropriated by this section may not be used for payment of dues or assessments by the member governments, and may not supplant funds appropriated by the member governments.
(e)  As used in this section "Larger City" means an incorporated city with a population of 50,000 or over.  "Smaller City" means any other incorporated city.

––-ALLOCATION OF RAPE CRISIS CENTER FUNDS

Sec. 25.  All funds for the Rape Crisis Centers appropriated to the Department of Administration, Council of the Status of Women, for the 1991-92 fiscal year and the 1992-93 fiscal year shall be available to Rape Crisis Centers providing direct services to victims of sexual assault and rape prevention services.  Funds shall be awarded according to criteria established by the Department of Administration.  In reviewing grant applications, the Department shall consider the impact of discontinued federal funding on those centers that received funding through Section 41 of Chapter 1086 of the 1987 Session Laws, Regular Session 1988.  Grants shall be awarded by September 1 each fiscal year and the funds disbursed on a quarterly basis.

––-DOMESTIC VIOLENCE CENTER FUNDS

Sec. 26.  The funds appropriated to the Department of Administration, Council on the Status of Women, for fiscal years 1991-92 and 1992-93 for domestic violence centers, shall be allocated equally among all of the 61 domestic violence centers in operation on July 1, 1989, that offered services including a hotline, transportation services, community education programs, daytime services, and call forwarding during the night.  For the 1991-92 fiscal year and for the 1992-93 fiscal year, each grant shall be $17,500.  Grants shall be awarded based on criteria established by the Department of Administration and disbursed on a quarterly basis.

PART VIII.––-DEPARTMENT OF TRANSPORTATION

––-ELDERLY AND HANDICAPPED TRANSPORTATION ASSISTANCE PROGRAM

Sec. 27.  (a)	Of the funds appropriated in Section 4 of this act, the sum of $2,000,000 for the 1991-92 fiscal year and the sum of $2,000,000 for the 1992-93 fiscal year shall be used to provide funds for the North Carolina Elderly and Handicapped Transportation Assistance Program established under G.S. 136-44.27.

––-CASH FLOW HIGHWAY FUND APPROPRIATIONS

Sec. 28.  The General Assembly authorizes and certifies anticipated revenues of the Highway Fund as follows:
For Fiscal Year 1993-94	$971,000,000
For Fiscal Year 1994-95	$990,000,000

––-CASH FLOW HIGHWAY TRUST FUND APPROPRIATION

Sec. 29.  The General Assembly authorizes and certifies anticipated revenues of the Highway Trust Fund as follows:
For Fiscal Year 1993-94	$394,900,000
For Fiscal Year 1994-95	$402,800,000

––-HIGHWAY FUND ALLOCATIONS BY CONTROLLER

Sec. 30.  The Controller of the Department of Transportation shall allocate at the beginning of each fiscal year from the various appropriations made to the Department of Transportation in Section 4 of this act, Titles:
02.b. - State Construction
02.c. - State Funds to Match Federal Highway Aid
02.d. - State Maintenance
02.e. - Ferry Operations
sufficient funds to eliminate all overdrafts on State maintenance and construction projects, and these allocations may not be diverted to other purposes.

––-HIGHWAY FUND LIMITATIONS ON OVEREXPENDITURES

Sec. 31.  (a)	Overexpenditures may be made by authorization of the Director of the Budget from Section 4 of this act, Titles:

02.b.(01)	- State Construction Primary Construction
02.b.(03)	- State Construction Urban Construction
02.b.(04)	- State Construction Access and Public Service Roads
02.c. - State Funds to Match Federal Highway Aid
02.d. - State Maintenance
02.e. - Ferry Operations,
provided that there are corresponding underexpenditures from these same titles.  Overexpenditures or underexpenditures in any titles may not vary by more than ten percent (10%) without prior consultation with the Advisory Budget Commission.  Written reports covering overexpenditures or underexpenditures of more than ten percent (10%) shall be made to the Joint Legislative Commission on Governmental Operations.  The reports shall be delivered to the Director of the Fiscal Research Division not less than 48 hours prior to the beginning of the Commission's full meeting.
(b)	Overexpenditures from Section 4 of this act, Titles:
02.b.(01)	- State Construction Primary Construction
02.b.(03)	- State Construction Urban Construction
02.b.(04)	- State Construction Access and Public Service Roads
02.c. - State Funds to Match Federal Highway Aid
02.d. - State Maintenance
02.e. - Ferry Operations,
for the purpose of providing additional positions shall be approved by the Director of the Budget.

––-RESURFACED ROADS MAY BE WIDENED

Sec. 32.  Notwithstanding the provisions of Section 31 of this act, of the contract maintenance resurfacing program funds appropriated in Section 4 of this act to the Department of Transportation, an amount not to exceed fifteen percent (15%) of the Board of Transportation's allocation of these funds may be used for widening existing narrow pavements that are scheduled for resurfacing.

––-URBAN CONSTRUCTION FUNDS

Sec. 33.  Of the funds appropriated in Section 4 of this act to the Department of Transportation for fiscal years 1991-92 and 1992-93, twenty million dollars ($20,000,000) shall be allocated for small urban construction projects.  Fourteen million dollars ($14,000,000) of these funds shall be allocated equally 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.  The remaining six million dollars ($6,000,000) of these funds 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 funds 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 Commission on Governmental Operations and the Fiscal Research Division.

––-HIGHWAY FUND ADJUSTMENTS TO REFLECT ACTUAL REVENUE

Sec. 34.  Any unreserved credit balance in the Highway Fund on June 30 of each of the fiscal years shall support appropriations in the succeeding fiscal year.  If all of the balance is not needed for these appropriations, the Director of the Budget may use the remaining excess to establish a reserve for access and public 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 construction and maintenance.  If all of the remaining excess is not used to establish these reserves, the remainder shall be allocated to the State-funded maintenance or construction appropriations in the manner approved by the Board of Transportation.  The Board of Transportation shall report monthly to the Joint Legislative Commission on Governmental Operations about the use of the reserve for highway construction and maintenance.  The Board of Transportation shall send copies of the monthly reports to the Chairman of the Senate Appropriations Committee on Natural and Economic Resources, the Chairman of the Highway Fund Subcommittee of the Appropriations Committee of the House of Representatives, the Chairman of the Senate Transportation Committee, and the Chairman of the Highways Subcommittee of the Infrastructure Committee of the House of Representatives.

PART IX.––-DEPARTMENT OF HUMAN RESOURCES

––-MEDICAID

Sec. 35. (a)	Funds appropriated in this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy.  Funds appropriated for these services shall be expended in accordance with the following schedule of services and payment bases.  All services and payments are subject to the language at the end of this subsection.
Services and payment bases:
(1)	Hospital-Inpatient - Payment for hospital inpatient services will be 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 - Eight 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.
(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 four dollars eighty-five cents ($4.85) professional services fee per month excluding refills for the same drug or generic equivalent during the same month.  Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills.  Payments for drugs are subject to the provisions of subsection(g) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with a plan adopted by the Department of Human Resources consistent with federal reimbursement regulations.
(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 (f) 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, Private Duty Nursing, Clinic Services, Prepaid Health Plans - 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 - Negotiated rates, established by the Department of Human Resources.
(17)	Medicare Crossover Claims - Actual coinsurance or deductible or both.
(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.
Reimbursement is available for up to 24 visits per recipient per year to any one or combinations of the following: physicians, clinics, hospital outpatient, 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)	The Division of Medical Assistance is exempt from the requirements of G.S. 150-B for purposes of establishing rates and/or methods of reimbursement when the State Medicaid Plan reflects establishment of rate and/or methods of reimbursement.
(c)	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.
(d)	Co-payment for Medicaid Services.  The Department of Human Resources may establish co-payment up to the maximum permitted by federal law and regulation.
(e)  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	$ 2,900
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 my be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
(f)  Spouse Responsibility.  The Department of Human Resources, Division of Medical Assistance, may not consider the income or assets of the spouse of a person who is admitted as a long-term care patient in a certified public or private  intermediate care or skilled nursing facility to be available to the institutionalized person.  This provision will remain in effect until superseded by federal law under the Medicare Catastrophic Coverage Act of 1988, on September 1, 1989.
(g)  Dental Coverage Limits.  Dental services will be provided on a restricted basis in accordance with regulations developed by the Department.  Funds for dental services shall be disbursed only with prior approval by the Department of Human Resources, Division of Medical Assistance, as required by this subsection.  No prior approval shall be required for emergency services or routine services.  Routine services are defined as examinations, X rays, prophylaxes, nonsurgical tooth extractions, amalgam fillings, and fluoride treatments.  Prior approval shall be required for all other services and for routine services performed more than two times during a consecutive 12-month period.  The Department of Human Resources shall adopt rules, as provided by the Administrative Procedure Act, to implement this subsection.
(h)  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).
(i)  Exceptions to Service Limitations, Eligibility Requirements, and Payments.  Service limitations, eligibility requirements, and payments, and payments bases in this section may be waived by the Department of Human Resources, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans or community based services programs in accordance with plans approved by the U.S. Department of Health and Human Services, or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient.
(j)  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.
(k)  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.
(l)  For all Medicaid eligibility classifications for which the federal poverty level, is used as an income limits for eligibility determination, the income limits will be updated each July 1 immediately following publication of federal poverty guidelines.
(m)  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.
(n)  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 July shall be covered for Medicaid benefits;
(2)	Infants under the age of one with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each July l, shall be covered for Medicaid benefits;
(3)	Children aged one through five with family incomes equal to or less than one hundred thirty-three percent (133%) of the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits; and
(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 July 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.
(o)  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 product a net savings in services requirements.  Administrative initiatives funded by this section shall be first approved by the Office of State Budget and Management.

––-NONMEDICAID REIMBURSEMENT

Sec. 36.  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, the Department of Human Resources may negotiate with providers of medical services under the various DHR 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, and Home Health shall be as follows:
Family	Medical Eye	All
Size	Kidney	Care Adults	Rehabilitation	Other
1	$ 6,400	$ 4,860	$ 8,364	$ 4,200
2	8,000	5,940	10,944	5,300
3	9,600	6,204	13,500	6,400
4	11,000	7,284	16,092	7,500
5	12,000	7,824	18,648	7,900
6	12,800	8,220	21,228	8,300
7	13,600	8,772	21,708	8,800
8	14,400	9,312	22,220	9,300
The eligibility level each fiscal year for outpatient services for all clients and for inpatient services for children under the age of five, in the Children's Special Health Services Program shall be one hundred percent (100%) of the federal poverty guidelines as revised annually by the United States Department of Health and Human Services, in effect on July 1 of each fiscal year.  The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind shall be the same as that for children in the Children's Special Health Services Program.

––-LIMITATIONS ON THE STATE ABORTION FUND

Sec. 37.  Section 93 of Chapter 479, 1985 Session Laws, as amended by Section 75 of Chapter 738 of the 1987 Session Laws, and as further amended by Section 72 of Chapter 500 of the 1989 Session Laws and Section 79 of Chapter 1066 of the 1989 Session Laws (meeting in the 1990 Short Session) are hereby repealed.
(1)  It shall be the policy of the State of North Carolina Carolina that the State Abortion Fund shall not be available for abortion on demand but shall be limited in accordance with this section.  Funds in the amount of two hundred thousand dollars ($200,000) are appropriated in this act to the Department of Human Resources, Division of Social Services, to reimburse medical providers, including licensed physicians, licensed hospitals, and other facilities for those services permitted under G.S. 14-45.1 except that the Fund will be limited to reimbursing providers for services provided within the first 112 days of pregnancy.  No State funds in excess of two hundred thousand dollars ($200,000) per fiscal year, whether from tax revenue, gift, bequest, grant, or any other sources, may be expended for the performance of abortions during the 1991-92 fiscal year or the 1992-93 fiscal year.  The Fund shall be administered by the Department of Human Resources, Division of Social Services.
(2)  Eligibility.  Applicants for services under this section shall be residents of North Carolina whose income does not exceed the financial eligibility criteria established by the Social Services Commission for the service, and who meet one or more of the following conditions:
(a)	The pregnancy is the result of rape or incest;
(b)	The woman is mentally retarded as defined in G.S.  122C-3; or,
(c)	In the opinion of two doctors, the mother's life is endangered or her physical health, exclusive of mental or psychological health, is gravely impaired by the pregnancy.

––-FAMILY SUPPORT ACT

Sec. 38.  (a)	Section 229 of Chapter 1014 of the 1985 Session Laws is amended by adding a new subsection to read:
"(d)	If any provision of this section is held invalid by a court of competent jurisdiction, the invalidity shall not affect the remaining provisions of this section that can be given effect."
(b)	The General Assembly finds that it is in the best interest of the State and of all its citizens to encourage recipients of Aid to Families with Dependent Children to obtain jobs and become self-sufficient.  It further finds that, by continuing medical assistance and providing limited wage assistance to those recipients who are working, the State will make it possible to help many recipients to be able to keep their jobs, support their families, and become self-sufficient.
(c)	The Social Services Commission shall adopt rules to change the way it budgets Aid to Families with Dependent Children payments that will result in more recipients being able to find work and keep working.  These rules shall include subtracting countable income from the State standard of need, and paying a percentage of the difference.  The percentage that shall be applied to determine the amount of assistance shall be the same percentage set in the Current Operations Appropriations Act that determines the Aid to Families of Dependent Children payment level from the standard of need.

––-RETROSPECTIVE ACCOUNTING ADJUSTMENT/AFDC

Sec.  39.  The Department of Human Resources shall use funds appropriated to it by this act to provide a State supplementary payment to Aid to Families with Dependent Children households adversely affected by the retrospective
accounting procedure as allowed under Section 403(a) of the Social Security Act as amended by Section 157(a) of the Tax Equity and Fiscal Responsibility Act of 1982.  The amount of the State supplement shall not exceed the maximum payment standard for the Aid to Families with Dependent Children Program.  This provision shall remain in effect until such time as it may be repealed by the General Assembly.

––-AFDC/WOMEN IN THIRD TRIMESTER OF PREGNANCY

Sec. 40.  The Division of Social Services, Department of Human Resources, shall provide Aid to Families with Dependent Children to women in their third trimester of pregnancy regardless of whether these women have children, if they otherwise qualify for these payments.  This provision shall remain in effect until such time as it may be repealed by the General Assembly.

––-FOOD STAMP OUTREACH PROGRAM

Sec. 41.  (a)	The Department of Human Resources shall continue a Food Stamp Outreach Program.  Under the Program, the Department shall inform public and private agencies, community groups, potentially eligible persons, and the general public regarding the eligibility requirements of the Food Stamp Program.  The Department shall maintain a referral list of public and private agencies, community groups, and interested persons and organizations who serve low-income persons.  The Department shall inform these agencies and persons regarding the Food Stamp Program and changes in the law that affect client eligibility or the extent of benefits.  The Department shall develop and distribute informational materials, such as public service announcements, brochures, pamphlets, posters, and correspondence.

––-CHILD PROTECTIVE SERVICES FUNDS

Sec. 42.  (a)	Of the funds appropriated to the Department of Human Resources, Division of Social Services for Child Protective Services, the Division shall use up to $175,900 in each fiscal year to provide consultation and technical assistance to county departments of social services to strengthen and support local child protective services.  The remaining funds shall be allocated to the county departments of social services as follows:
(1)	$10,000 for the 1991-92 fiscal year and $10,000 for the 1992-93 fiscal year shall be allocated to each of the 15 county departments that did not receive an allocation of the 1985 State appropriation for child protective services;
(2)	In addition, each of the 100 county departments shall receive an allocation of $10,000 for the 1991-92 fiscal year and $10,000 for the 1992-93 fiscal year;
(3)	The balance of available funds shall be allocated to each county department based upon the percentage that the total number of abuse and neglect reports within that county represents to the statewide total number of abuse and neglect reports.  These percentages shall be computed from the reports received by the Central Registry of Abuse and Neglect cases for the next two prior fiscal years.
(b)	Funds allocated to county departments of social services pursuant to this section shall be used for staff carrying out investigations of reports of child abuse or neglect or providing protective or preventive services in cases in which the department confirms neglect, abuse, or dependency.  If a county department demonstrates that it has adequate protective services staff, these funds may be used to purchase or provide treatment and other support services to children and their families in confirmed cases.  All expenditures shall be directly in support of the departments' program of protective services for children.  These funds shall not be used to supplant any Social Services Block Grant funds or county appropriations previously budgeted for protective services for children.
(c)	The Department of Human Resources, Division of Social Services, shall establish criteria and guidelines to assure that the allocations to county departments of social services are used in accordance with the intent and purposes of this section.

––-EMERGENCY ASSISTANCE

Sec. 43.  The Division of Social Services, Department of Human Resources, shall not expend more State funds than are appropriated for Emergency Assistance by this act.  Within this limit, Emergency Assistance benefits shall not exceed three hundred dollars ($300.00) per year per family, payable over a 30-day period.  After this 30-day period, Emergency Assistance benefits are not available to that family until 12 months have elapsed from the initial authorization date.  The family may have no more than a total of three hundred dollars ($300.00) in liquid assets in order to qualify for any Emergency Assistance pursuant to this section.
It is the intent of the General Assembly that these Emergency Assistance funds shall only be used to provide assistance to persons to alleviate an emergency.  In evaluating whether an emergency exists, the county departments of social services shall apply prudent judgment to evaluate each emergency on its own merits.  Prudent judgment will permit departments of social services to consider whether the client created the emergency and whether the assistance will resolve the emergency.

––-ADOPTION SUBSIDY

Sec. 44.  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.

––-FOSTER CARE RATE

Sec. 45.  Funds appropriated to the Department of Human Resources by this act for foster care assistance rates shall be used to set the rates at two hundred sixty-five dollars ($265.00) per child per month.

––-DOMICILIARY RATE INCREASE

Sec. 46.  Effective January 1, 1992, the maximum monthly rate for ambulatory residents in domiciliary care facilities shall be eight hundred twenty-two dollars ($822.00) and the maximum monthly rate for semi-ambulatory residents shall be eight hundred sixty-one dollars ($861.00).

––-DOMICILIARY STATE/COUNTY SHARE OF COSTS

Sec. 47.  The State shall pay fifty percent (50%), and the counties shall pay fifty percent (50%) of that portion of the authorized maximum rates for domiciliary care in homes for the aged and for family care homes, including area mental health agency operated group homes, which cannot be paid by the eligible resident of such facility.

––-IN-HOME AGING SERVICES

Sec. 48.  Of the funds appropriated to the Division of Aging, Department of Human Resources, by this act for the 1991-93 fiscal biennium, the sum of seven hundred twenty thousand dollars ($720,000) for the 1991-92 fiscal year and the sum of seven hundred twenty thousand dollars ($720,000) for the 1992-93 fiscal year shall be used to provide funds for additional in-home aide services that enable the frail elderly to remain in their homes and avoid institutionalization.
The Division shall administer the in-home aide services and activities funded by this section.  The Division of Aging shall choose in-home service providers in accordance with procedures under the Older Americans Act and shall include the following criteria:  documented capacity to provide care, adequacy of quality assurance, training, supervision, abuse prevention, complaint mechanisms, and costs.  All funds allocated by the Division pursuant to this section shall be allocated by October 1 of each fiscal year on the same basis as funding under the Older Americans Act.  Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%).  State funding shall not exceed ninety percent (90%) of the reimbursable cost.

––-CAREGIVER SUPPORT - AGING

Sec. 49.  (a)	Of the funds appropriated to the Division of Aging, Department of Human Resources, by this act for the 1991-93 fiscal biennium, the sum of one million eight thousand dollars ($1,008,000) for the 1991-92 fiscal year and the sum of one million eight thousand dollars ($1,008,000) for the 1992-93 fiscal year shall be used for services that support family caregivers of elderly persons with functional disabilities, whether physical or mental, who want to stay in their homes rather than be institutionalized but who need assistance with the activities of daily living in order to remain at home.  The services that may be purchased from funds received under this section include:
(1)	Respite Care;
(2)	Adult Day Care;
(3)	Stipends and other related costs for senior companions, modeled after the federal Senior Companion Program; and
(4)	Other related services that meet needs not now adequately addressed by the services described in subdivisions (1) through (3) of this subsection.
(b)	The Division of Aging shall expend funds for these services according to the population of persons 70 years or more in each region.  The Division of Aging shall use a maximum of ninety-five percent (95%) of the funds it receives for the services described in subdivisions (1) through (4) of subsection (a) of this section and may only use a maximum of five percent (5%) for technical assistance as described in subsection (c) of this section.  The Division of Aging shall choose providers in accordance with procedures under the Older Americans Act.  Funds allocated by the Division pursuant to this section shall be allocated by October 1 of each fiscal year.  Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%).  State funding shall not exceed ninety percent (90%) of the reimbursable costs.
(c)	The Division of Aging may contract for technical assistance.  The technical assistance shall include training assistance, coordination of various service delivery and funding sources, and ideas for innovative ways to build a lasting system of services for family caregivers.

––-SENIOR CENTER OUTREACH AND CAPITAL IMPROVEMENTS

Sec. 50.  The sum of seven hundred sixty-three thousand eight hundred dollars ($763,800) for the 1991-92 fiscal year and the sum of seven hundred sixty-three thousand eight hundred dollars ($763,800) for the 1992-93 fiscal year shall be used by the Department of Human Resources, Division of Aging to enhance senior center programs and facilities.  All of these funds shall be allocated by October 1 of each fiscal year.
All funds received under this section shall (i) test "satellite" services provided by existing senior centers to unserved or underserved areas; or (ii) provide start-up funds for new centers; or (iii) fund capital improvements to existing senior centers.  If funds received under this section are awarded for the purpose of starting up a new senior center, the county commissioners shall first:
(1)	Formally endorse the need for such a center;
(2)	Formally agree on the sponsoring agency for the center; and 
(3)	Make a formal commitment to use local funds to support the ongoing operation of the center.
Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%).  State funding shall not exceed ninety percent (90%) of reimbursable costs.

––-AGING FEDERAL MATCHING FUNDS

Sec.  51.   The Division of Aging, Department of Human Resources, may use funds appropriated in this act to provide the State matching requirement necessary to draw down federal money available through Title III-D of the Older Americans Act for in-home services for the frail elderly, including those with Alzheimer's Disease.

––-DAY CARE RATES

Sec. 52.  (a)	Rules for the monthly schedule of payments for the purchase of day care services for low-income children shall be established by the Social Services Commission pursuant to G.S. 143B-153(8)a., in accordance with the following requirements:
(1)	For day care facilities, as defined in G.S. 110-86(3), in which fewer than fifty percent (50%) of the enrollees are subsidized by State or federal funds, the State shall continue to pay the same fee paid by private paying parents for a child in the same age group in the same facility.
(2)	Facilities in which fifty percent (50%) or more of the enrollees are subsidized by State or federal funds may choose annually one of the following payment options:
a.	The facility's payment rate for fiscal year 1985-86; or
b.	The county market rate, as calculated annually by the Division of Facility Services' Child Day Care Section in the Department of Human Resources.  A market rate shall be calculated for each county and for each age group of enrollees, and shall be representative of fees charged to unsubsidized private paying parents for each age group of enrollees within the county.  The county market rates shall be calculated from facility fee schedules collected by the Child Day Care Section during its routine inspection visits.
(3)	Child day care homes as defined in G.S. 110-86(4) and individual child care arrangements may be paid the county market rate for day care homes which shall be calculated at least biennially by the Child Day Care Section according to the method described in subsection (a) (2) of this section, using day care fee schedules collected by the Section during its routine inspection visits.
(b)	Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes may participate in the program that provides for the purchase of care in day care facilities, for minor children of needy families.  No separate licensing requirements may be used to select facilities to participate.
Day care homes from which the State purchases day care services shall meet the standards established by the Child Day Care Commission pursuant to G.S. 110-101 and G.S. 110-105.1.  Individual child care arrangements shall meet the requirements established by the Social Services Commission.
(c)	County departments of social services shall continue to negotiate with day care providers for day care services below those rates prescribed by subsection (a) of this section.  County departments are directed to purchase day care services so as to serve the greatest number of children possible with existing resources.

––-DAY CARE ALLOCATION FORMULA

Sec. 53.  (a)	To simplify current day care allocation methodology and more equitably distribute State day care funds, the Department of Human Resources shall apply the following allocation formula to all noncategorical federal and State day care funds used to pay the costs of necessary day care for minor children of needy families:
(1)	One-third of budgeted funds shall be distributed according to the county's population in relation to the total population of the State;
(2)	One-third of the budgeted funds shall be distributed according to the number of children under 6 years of age in a county who are living in families whose income is below the State poverty level in relation to the total number of children under 6 in the State in families whose income is below the poverty level; and
(3)	One-third of budgeted funds shall be distributed according to the number of working mothers with children under 6 years of age in a county in relation to the total number of working mothers with children under 6 in the State.
(b)	Counties whose allocation, if based on previously used formulas, exceeds the allocation produced by the formula prescribed by this section may not have their allocations reduced to the level that results from application of the new formula.  Counties whose allocation, if based on previously used formulas, is less than the allocation produced by the formula prescribed by this section shall continue to receive the proportional share of those funds that they received pursuant to appropriations for this purpose by the 1985 General Assembly.  The formula prescribed by this section shall not be implemented unless additional State or federal funds are made available.  The additional funds must be sufficient to apply the new formula without reducing any county's allocation below the previous year's initial allocation for child day care.
(c)	The Department of Human Resources shall distribute the funds appropriated and otherwise available to it for day care for minor children of needy families so as to serve the greatest number of children possible.
(d)	No local matching funds may be required by the Department of Human Resources as a condition of any locality's receiving any State day care funds appropriated by this act unless federal law requires such a match.

––-WILLIE M.

Sec. 54.  (a)	It is the intent of the General Assembly that funds appropriated in this act to the Department of Human Resources for serving members of the Willie M. Class be expended only for programs serving members of the Willie M. Class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., including evaluations of potential class members.  It is recognized that therapeutic or economic reasons may, at times, require certain of these services to serve a mixed clientele of Willie M. Class members and other clients.  To the maximum extent possible, however, these funds shall be expended solely for the benefit of Willie M. Class members.  The Department shall reallocate these funds among services to Willie M. Class members during the year as it deems advisable in order to use the funds efficiently in providing appropriate services to Willie M. Class children.
(b)	Funds appropriated to the Department of Public Education in this act for members of the Willie M. Class, are to establish a supplemental reserve fund to serve only members of the class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al.  These funds shall be allocated by the State Board of Education to the local education agencies to serve those class members who were not included in the regular average daily membership and the census of children with special needs, and to provide the additional program costs which exceed the per pupil allocation from the State Public School Fund and other State and federal funds for children with special needs.
(c)	No State funds shall be expended on the placement and services of class members in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al. or for any other thing or purpose arising out of this litigation, now or at any time in the biennium, except for those funds appropriated in this act to the Departments of Public Education and Human Resources for programs serving members of the Willie M. Class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., and except for such funds as may be elsewhere appropriated by the General Assembly specifically for such purposes.  The above limitation shall not preclude the use of unexpended Willie M. funds from prior fiscal years to cover current or future needs of the Willie M. program subject to approval by the Director of the Budget.  Such expenditures shall not be subject to the requirements of G.S. 143-18.
(d)	Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing appropriate services to members of the class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of such programs.
(e)  The Department of Human Resources and the Department of Public Education shall submit, by May 1 of each year, a joint report to the Governor and the General Assembly on the progress achieved in serving members of the Willie M. Class.  The report shall include the following unduplicated data for each  county:  (i)  the number of children nominated for the Willie M. Class; (ii) the number of children actually identified as members of the Class in each county; (iii) the number of children served as members of the Class in each county; (iv) the number of children who remain unserved; (v) the types and locations of treatment and education services provided to Class members; (vi) the cost of services, by type, to members of the Class; (viii) information on the impact of treatment and education services on members of the Class.

––-MIXED BEVERAGE TAX FOR AREA MENTAL HEALTH PROGRAMS

Sec. 55.  Funds received by the Department of Human Resources for the tax levied on mixed beverages under G.S. 18B-804(b)(8) shall be expended by the Department of Human Resources as prescribed by G.S. 18B-805(h).  These funds shall be matched by local funds in accordance with the State/local ratio established by the current area mental health matching formula.  These funds shall be allocated to the area mental health programs for substance abuse services on a per capita basis as determined by the Office of State Budget and Management's most recent estimates of county populations.

––-THOMAS S.

Sec. 56.  "(a)	Funds appropriated to the Department of Human Resources in this act for the 1991-92 fiscal year and the 1992-93 fiscal year for members of the Thomas S. Class as identified in Thomas S., et al. vs. Flaherty, shall be placed in a reserve in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and shall be expended only for programs serving Thomas S. Class members or for services for those clients who are likely to become class members."
"(b)	The Department of Human Resources shall provide periodic reports of funds expended and services performed on behalf of members of the Thomas S. Class and on behalf of those clients who are likely to become class members to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office."
"(c)	Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing appropriate services to members of the class identified in Thomas S., et al. vs. Flaherty, the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of such programs."

––-ADAP TRANSPORTATION REIMBURSEMENT

Sec. 57.  (a)	Reimbursement of Adult Developmental Activity Program for transportation of clients shall be based on a cost per client basis.  There shall be different levels of reimbursement based on documented cost levels.
(b)	In reimbursing Adult Developmental Activity programs, the Department shall base the reimbursement on the distribution by cost range developed by the Division of Mental Health, Developmental Disabilities and Substance Abuse Services, in accordance with its most recently conducted cost study.

––-SPECIALIZED RESIDENTIAL CENTERS' BED CONVERSIONS

Sec. 58.  Funds made available as a result of the conversion of State supported beds in specialized residential centers to ICF/MR beds shall be used to increase the State subsidy provided to centers.  Funds made available to centers by this section shall be used, as they become available, to increase the subsidy rate to sixty-five percent (65%) of the statewide average cost of providing this service based on the most recent Specialized Community Residential Cost Study.
Funds made available in addition to those needed to increase the subsidy rate may be transferred to the Division of Medical Assistance as needed to be used as State match for the converted ICF/MR beds.

––-PIONEER FUNDING SYSTEM

Sec. 59.  Notwithstanding the provisions of G.S. 122C-147 or necessary alterations in the 1989 adopted Pioneer System Implementation Plan which may be caused by budget shortfalls, the Department of Human Resources is authorized to pay budgeted funds to area mental health, developmental disabilities and substance abuse programs on a unit cost basis for services delivered by those area programs which are operating under the Pioneer System.

––-DHR PROGRAM FUNDS

Sec. 60.  (a)	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 for the following needs, pursuant to the Governor's recommended changes to the 1991-92 State Budget:
(1)	Mental Health Accounts Receivable/Billing; and
(2)	Pioneer Funding Project.
(b)	The Department of Human Resources shall choose the priority in which the items in subsection (a) of this section shall be funded.

––-JOHN UMSTEAD HOSPITAL - PLANNING

Sec. 61.  The Department of Human Resources may use funds that become available to it through gifts, federal or private grants, receipts from federal programs, or any other source in the 1991-92 fiscal year, for advance planning through the working drawings phase for a psychiatric facility at John Umstead Hospital.

––-LIABILITY INSURANCE FOR PHYSICIANS/DENTISTS

Sec. 62.  The Secretary of the Department of Human Resources, the Secretary of the Department of Environment, Health and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed $1,000,000 on behalf of employees of the Departments licensed to practice medicine or dentistry.  This coverage may include commercial insurance or self-insurance and shall cover these employees for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment.
The coverage provided pursuant to this section shall not require any additional appropriations and shall not apply to any individual providing contractual service to the Department of Human Resources, the Department of Environment, Health, and Natural Resources, or the Department of Correction.

––-TRANSFERS OF CERTAIN FUNDS AUTHORIZED

Sec. 63.  In order to assure maximum utilization of funds in county departments of social services, county or district health agencies, and area mental health, mental retardation and substance abuse authorities, the Director of the Budget is authorized to transfer excess funds appropriated to a specific service or program fund (whether specified in a block grant plan or General Fund appropriation) into another service or program fund for local services within the budget of the respective State agency.
This provision shall remain in effect until such time as it may be repealed by the General Assembly.

––-COMMUNITY ACTION PROGRAM FUNDS

Sec. 64.  For the 1991-92 fiscal year and the 1992-93 fiscal year, all agencies designated as eligible agencies pursuant to G.S. 113-28.24 that receive Community Services Block Grant funds may use those funds for the administration of agency programs.  The amount of those funds used for administration of agency programs shall be limited to ten percent (10%) of the total annual budget of the agency as certified in the prior year's audit of the agency.

––-DHR EMPLOYEES AS IN-KIND MATCH

Sec. 65.  Notwithstanding the limitations of G.S. 143B-139.4, the Secretary of the Department of Human Resources may assign employees of the Office of Rural and Resource Development to serve as in-kind match to nonprofit corporations working to establish health care programs that would improve access while controlling costs.

––-CHILD CARING INSTITUTIONS REIMBURSEMENT

Sec. 66.  Funds appropriated in this act for the monthly payment of State funds to private residential child care agencies for the provision of foster care shall be disbursed in accordance with rules established by the Social Services Commission pursuant to G.S. 143B-153(2)d., and in accordance with the following requirements:
(1)	Only those child caring agencies that have been receiving funds from the Division of Social Services that have been appropriated as Grants-In-Aid to non-State agencies shall be included in the distribution of these funds unless additional State or federal funds are made available to fund new agencies.  The additional funds must be sufficient to include the new agencies without reducing the allocation to agencies receiving funds.
(2)	The formula for the distribution of these funds shall be based upon the assumption that the State is committed to paying allowable foster care maintenance cost and will do so to the extent that State and federal funds are available.
(3)	In any year State and federal funds are not sufficient to pay each agency's allowable foster care maintenance costs, each participating agency's rate will be reduced by the same percentage so that each agency receives the same percentage of their allowable costs.
(4)	These provisions shall be effective July 1, 1992.

PART X.––-DEPARTMENT OF AGRICULTURE

––-ABOLISH AGRICULTURAL FINANCE AUTHORITY

Sec. 67.  (a)	The funds remaining in the Reserve for Farm Loans of the North Carolina Agricultural Finance Authority shall revert to the General Fund on June 30, 1991.
(b)	The title of all fixed assets of the Authority, including any office equipment and supplies, shall be transferred to the Department of Agriculture.  The Authority shall complete such transfer no later than June 30, 1991.
(c)	The State Treasurer shall assume all the duties and rights of the Authority pursuant to the provisions of Chapter 122D of the General Statutes, specifically those under G.S. 122D-6 regarding the repayment of agricultural loans and any other outstanding obligations due to the authority, as if that Chapter had not been repealed.
(d)	The North Carolina Agricultural Finance Authority is abolished.
(e)  Chapter 122D of the General Statutes is repealed.
(f)  G.S. 53-234(6) reads as rewritten:
"(6)	'Exempt person or organization' means:
(a)	Any lender authorized to engage in business as a bank, a farm credit system, life insurance company, savings institution, or credit union, under the laws of the United States or the State of North Carolina and subsidiaries and affiliates of such lenders, which subsidiaries and affiliates are subject to the general supervision or regulation of the lender or subject to audit or examination by a regulatory body or agency of the United States or the State of North Carolina; the entities listed in this sub-subdivision, and their officers and employees, are not subject to any of the provisions of this Article; or
(b)	Any licensed real estate agent or broker, who is performing those activities subject to the regulation of the North Carolina Real Estate Commission.  Notwithstanding the above, an exempt person does not include a real estate agent or broker who receives direct compensation or income in connection with the placement of a mortgage loan; or
(c)	Any person who, as seller, receives in one calendar year no more than ten mortgages, deeds of trust, or other security instruments on real estate as security for a purchase money obligation; or
(d)	The North Carolina Housing Finance Agency as established by Chapter 122A of the General Statutes; or
(e)	Any agency of the federal government or any state or municipal government granting first mortgage loans under specific authority of the laws of any state or the United States."
(g)	G.S. 120-123(47) is repealed.
(h)	Subsections (a) and (b) of this section become effective June 30, 1991.  The remaining subsections become effective July 1, 1991.

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

––-REDUCE AND TRANSFER RURAL ECONOMIC DEVELOPMENT CENTER  GRANTS
Sec. 68.  Grant funds appropriated to the Department of Economic and Community Development for the Rural Economic Development Center shall be reduced by $500,000 in the 1991-92 fiscal year and $500,000 in the 1992-93 fiscal year.  The balance of the grant ($1,225,000 each year) shall be retained and disbursed by the Department of Economic and Community Development according to provisions established by the department.

––-UTILITIES REGULATORY FEE

Sec. 69.  The percentage rate for the Utilities regulatory fee shall be set at nine hundredths percent (0.09%) effective July 1, 1991.

––-PETROLEUM OVERCHARGE FUNDS ALLOCATION

Sec. 70.  (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 $10,900,000 for the 1991-92 fiscal year and the sum of $6,001,511 for the 1992-93 year to be allocated as follows:
(1)	The sum of $2,200,000 for the 1991-92 fiscal year and the sum of $1,200,302 for the 1992-93 fiscal year shall be used for projects under the State Energy Conservation and Energy Extension Service Programs;
(2)	The sum of $3,200,000 for the 1991-92 fiscal year and the sum of $1,740,438 for the 1992-93 fiscal year shall be used for the Low Income Weatherization Program;
(3)	The sum of $2,500,000 for the 1991-92 fiscal year and the sum of $1,380,348 for the 1992-93 fiscal year shall be used for energy conservation programs for hospitals and schools; and
(4)	The sum of $3,000,000 for the 1991-92 fiscal year and the sum of $1,680,423 for the 1990-91 fiscal year shall be used for the Low Income Home Energy Assistance Program (LIHEAP).
Any remaining funds in the Special Reserve for Oil Overcharge Funds 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.
(b)	There is appropriated from funds received from the United States Department of Energy's Stripper Well Litigation (MDL378) and appropriated to the Special Reserve for Oil Overcharge Funds to the Department of Commerce the sum of $4,898,489 for the 1992-93 fiscal year to be allocated as follows:
(1)	The sum of $999,698 for the 1992-93 fiscal year for projects under the State Energy Conservation and Energy Extension Service;
(2)	The sum of $1,119,652 for the 1992-93 fiscal year for energy conservation programs for schools and hospitals;
(3)	The sum of $1,459,562 for the 1992-93 fiscal year for the Low Income Weatherization Program; and
(4)	The sum of $1,319,577 for the 1992-93 fiscal year for the Low Income Home Energy Assistance Program (LIHEAP).
(c)	Diamond Shamrock Settlement Funds:  Funds appropriated by Section 112 of Chapter 830 of the 1987 Session Laws to the Energy Division for administrative expenses shall continue to be available to the Energy Division for administrative expenses on an as-needed basis.

––-WORKER TRAINING TRUST FUND

Sec. 71.  (a)	There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of six million four hundred fifty-nine thousand six hundred seventy-three dollars ($6,459,673) for the 1991-92 fiscal year and the sum of six million four hundred fifty-nine thousand six hundred seventy-three dollars ($6,459,673) 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)	The sum of $2,000,000 for the 1991-92 fiscal year and $2,000,000 for the 1992-93 fiscal year to the North Carolina Department of Economic and Community Development for the State job training program to be administered through the Job Training Partnership Act system aimed at the unemployed and the working poor.
(2)	The sum of $250,000 for the 1991-92 fiscal year and $250,000 for the 1992-93 fiscal year to the North Carolina Department of Public Education for local implementation grants for five Tech Prep programs in the public schools.  These grants shall be provided to local school units that have a plan meeting the standards of the State Board of Education and the State Board of Community Colleges.
(3)	The sum of $500,000 for the 1991-92 fiscal year and $500,000 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.
(4)	The sum of $2,000,000 for the 1991-92 fiscal year and $2,000,000 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.
(5)	The sum of $1,000,000 for the 1991-92 fiscal year and $1,000,000 for the 1992-93 fiscal year to the North Carolina Department of Community Colleges to continue the Focused Industrial Training Program.

––-TOURISM PROMOTION GRANTS

Sec. 72.  Funds appropriated in Section 3 of this act to the Department of Economic and Community Development for tourism promotion grants shall be
allocated according to per capita income, unemployment, and population growth in an effort to direct funds to counties most in need in terms of lowest per capita income, highest unemployment, and slowest population growth, in the following manner:
(1)	Counties 1 through 20 are each eligible to receive a maximum grant of ten thousand dollars ($10,000) for each fiscal year, provided these funds are matched on the basis of one non-State dollar for every four State dollars.
(2)	Counties 21 through 50 are each eligible to receive a maximum grant of five thousand dollars ($5,000) for two of the next three fiscal years, provided these funds are matched on the basis of one non-State dollar for every three State dollars.
(3)	Counties 51 through 100 are each eligible to receive a maximum grant of five thousand dollars ($5,000) for alternating fiscal years, beginning with the 1991-92 fiscal year, provided these funds are matched on the basis of four non-State dollars for every State dollar.

PART XII.––-DEPARTMENT OF LABOR

––-FUNDING FOR OSHA ENFORCEMENT POSITIONS

Sec. 73.  The Department of Labor may use funds appropriated to the Department of Labor for the Occupational Health and Safety Act of North Carolina (OSHANC) program to fully fund enforcement personnel in the Compliance Bureau of the OSHANC program, provided the Department of Labor certifies to the Office of State Budget and Management that no federal match is available for the 1991-92 fiscal year and for the 1992-93 fiscal year.

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

––-BUXTON WOODS PURCHASE FUNDS

Sec. 74.  Funds deposited pursuant to G.S. 20-81.3(c) in the Recreation and Natural Heritage Trust Fund may be used during the 1991-93 biennium to match federal funds for the purchase of land at Buxton Woods.

––-MATERNAL AND CHILD HEALTH CARE

Sec. 75.  (a)	The Department of Environment, Health, and Natural Resources shall ensure that local health departments do not reduce county appropriations for maternal and child health services provided by the local health departments because they have received State appropriations pursuant to this act.
(b)	In order to ensure that funds appropriated by Section 3 of this act for maternal and child health services to the Department of Environment, Health, and Natural Resources, Division of Health Services, provide medical services to as many eligible women of childbearing age as possible, especially to adolescents, these funds may be used only for the purposes of providing prenatal clinics, child health services, purchase of medical services, and family planning services, including education and counseling and medical supplies.
(c)	All income earned by local health departments from Maternal and Child Health Programs supported in whole or in part from State or federal funds, received from the Department of Environment, Health, and Natural Resources, Division of Health Services, shall be budgeted and expended by local health departments to further the objectives of the program that generated the income.

––-HEALTH PROMOTION FUNDS

Sec. 76.  The Department of Environment, Health, and Natural Resources shall ensure that local health departments do not reduce county appropriations for health promotion services provided by local health departments if they have received State appropriations for this purpose pursuant to this act.

––-SEPTAGE MANAGEMENT FEES

Sec. 77.  Receipts collected by the Department of Environment, Health, and Natural Resources pursuant to G.S. 130A-291.1 are appropriated to the Department of Environment, Health, and Natural Resources to operate the North Carolina Septage Management Program.

––-AUTHORIZATION FOR USE OF WATER QUALITY FEES

Sec. 78.  There is appropriated from the water quality fees collected and deposited in the nonreverting account established in G.S. 143-215.3A, a sum not to exceed $2,124,142 for the 1991-92 fiscal year and a sum not to exceed $2,148,017 for the 1992-93 fiscal year to the Department of Environment, Health, and Natural Resources to retain and provide all necessary support for positions, or to establish and provide all necessary support for positions, in the water quality program, when sufficient fees for positions and all necessary support for the 1991-92 fiscal year and for the 1992-93 fiscal year have been deposited.  No more than eight new positions for the 1991-92 fiscal year may be funded and supported in this manner.  First priority is to retain and support those positions that were previously established by the General Assembly.  Water quality fees shall be the only source of funds for these positions and all necessary support, including fringe benefits.  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.

––-AUTHORIZATION FOR USE OF AIR QUALITY FEES

Sec. 79.  There is appropriated from the air quality fees collected and deposited in the nonreverting account established in G.S. 143-215.3A, a sum not to exceed $1,193,340 for the 1991-92 fiscal year and a sum not to exceed $1,487,506 for the 1992-93 fiscal year, to the Department of Environment, Health, and Natural Resources to establish and provide all necessary support for positions, in the Department of Environment, Health, and Natural Resources, when sufficient fees for positions and all necessary support for the 1991-92 fiscal year and for the 1992-93 fiscal year have been collected and deposited.  No more than five new positions in the 1991-92 fiscal year and no  more than five new positions in the 1992-93 fiscal year may be established in this manner.  First priority is to retain and support those positions that were previously established by the General Assembly.  Air quality fees shall be the only source of funds for these positions and all necessary support, including fringe benefits.  These positions shall be used to conduct air quality permitting and air quality compliance and monitoring activities.

PART XIV.––-DEPARTMENT OF REVENUE

––-APPROPRIATION OF STATE TAX REVENUE TO LOCAL GOVERNMENTS

Sec. 80.  In accordance with G.S. 105-113.82, 105-116, 105-120, and 105-213, as amended by Chapter 813 of the 1989 Session Laws, the following appropriations are made from the designated State tax revenue deposited in the General Fund to local governments for the 1991-92 and 1992-93 fiscal years.

	1991-92	1992-93

(1)	Appropriation of franchise
tax revenue, pursuant to
	G.S. 105-116 and 105-120.	$ 95, 297,661	$ 97,997,142

(2)	Appropriation of intangibles
	tax revenue, pursuant to
	G.S. 105-213.	 116, 518,728	119,819,334

(3)	Appropriation of beverage tax
	revenue, pursuant to G.S.
	105-113.82.	  20,107,830	 20,677,421
The amounts appropriated shall be adjusted during the 1991-92 and 1992-93 fiscal years based on the actual revenue collections received under the designated revenue sources.  If an amount appropriated in subdivisions (1), (2), or (3) of this section exceeds the adjusted amount based on the designated revenue source, the excess reverts to the General Fund.  If an amount appropriated in subdivisions (1), (2), or (3) of this section is less than the adjusted amount based on the designated revenue source, the deficiency is appropriated from the designated revenue source to the local governments, provided the Director of the Budget determines there are sufficient funds available from revenue collections during the 1991-92 and 1992-93 fiscal years to transfer the larger amounts.

PART XV.––-EMPLOYEE SALARIES AND BENEFITS

––-MOST STATE EMPLOYEES/SALARY INCREASES

Sec. 81. (a)	The compensation increase reserve funds in Sections 3 and 4 of this act contain funds equivalent to an average annual increase of two percent (2%) for permanent State employees, which shall be transferred by the Director of the Budget including funds for the employer's retirement and Social Security contributions, to all employing agencies to be awarded, on and after January 1, 1992, to permanent State employees whose salaries are set in accordance with the State Personnel Act and who are paid from the General Fund or Highway Fund, on the basis of job performance that exceeds satisfactory levels in accordance with the policies, rules, and regulations established by the State Personnel Commission.  The provisions of the subsection shall not apply to employees whose salaries are determined in accordance with G.S. 20-187.3(a).  During the fiscal year covered by this section, no employee shall receive more than a six percent (6%) increase in his or her annual salary as a result of this subsection.
(b)	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.

––-COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES

Sec. 82.  (a)	The Director of the Budget may transfer from the compensation increase reserve fund created in Section 3 of this act for fiscal year 1991-92 funds necessary to provide an average annual salary increase of two percent (2%), including funds for the employer's retirement and Social Security contributions, commencing January 1, 1992, for all permanent community college institutional personnel supported by State funds.  Subject to the availability of funds, the salaries for temporary community college institutions personnel may be increased by pro rata amounts of the two percent (2%) average annual salary increase provided for permanent institutional employees.  These funds may not be used for any purpose other than that for the salary increases and necessary employer contributions provided by this section.
(b)	Any full-time employee in the above categories or State-paid employee who is hired and paid on less than a 12-month basis and who is granted a two percent (2%) salary increase effective January 1, 1992, pursuant to the provisions of this act, shall, for fiscal year 1991-92, receive an amount equal to two percent (2%) of one-half of his annual salary.

––-PUBLIC SCHOOL PERSONNEL/SALARY INCREASES

Sec. 83.  (a)	Superintendents, Assistant Superintendents, Associate Superintendents, Supervisors, Directors, Coordinators, Evaluators, Program Administrators, Principals, and Assistant Principals–1991-92.  The Director of the Budget may transfer from the compensation increase reserve fund created in Section 3 of this act for fiscal year 1991-92 funds necessary to provide an annual average salary increase of two percent (2%), including funds for the employer's retirement and Social Security contributions, commencing January 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 that for the salary increases and necessary employer contributions provided by this subsection.
(b)	Noncertified Employees.  The Director of the Budget may transfer from the compensation increase reserve fund created in Section 3 of this act for fiscal year 1991-92 funds necessary to provide an annual average salary increase of two percent (2%), including funds for the employer's retirement and Social Security contributions, commencing January 1, 1992, for all noncertified public school employees, whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than that for the salary increases and necessary employer contributions provided by this subsection.
(c)	Any full-time employee in the above categories or State-paid employee who is hired and paid on less than a 12-month basis and who is granted a two percent (2%) salary increase effective January 1, 1992, pursuant to the provisions of this act, shall, for fiscal year 1991-92, receive an amount equal to two percent (2%) of one-half of his annual salary.

––-HIGHER EDUCATION PERSONNEL/SALARY INCREASES

Sec. 84.  (a)	The Director of the Budget may transfer from the salary increase reserve fund created in Section 3 of this act for fiscal year 1991-92 funds necessary to provide an average annual salary increase of two percent (2%), including funds for the employer's retirement and Social Security contributions, commencing January 1, 1992, for all employees of The University of North Carolina as well as employees of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act.  These funds shall be allocated to individuals according to rules adopted by the Board of Governors, or the Board of Trustees of the North Carolina School of Science and Mathematics, as appropriate, and may not be used for any purpose other than that for the salary increases and necessary employer contributions provided by this section.
(b)	Any full-time employee in the above categories or State-paid employee who is hired and paid on less than a 12-month basis and who is granted a two percent (2%) salary increase effective January 1, 1992, pursuant to the provisions of this act, shall, for fiscal year 1991-92, receive an amount equal to two percent (2%) of one-half of his annual salary.

––-SALARY RELATED CONTRIBUTIONS/EMPLOYERS

Sec. 85.  (a)	Required employer salary-related contributions for employees whose salaries are paid from department, office, institution, or agency receipts shall be paid from the same source as the source of the employees' salary.  If an employee's salary is paid in part from the General Fund or Highway Fund and in part from department, office, institution, or agency receipts, required employer salary-related contributions may be paid from the General Fund or Highway Fund only to the extent of the proportionate part paid from the General Fund or Highway Fund in support of the salary of the employee, and the remainder of the employer's requirements shall be paid from the source that supplies the remainder of the employee's salary.
(b)	The State's employer contribution rates budgeted for retirement and related benefits as percentage of covered salaries for the 1991-92 fiscal year are (i) ten and fifty-eight hundredths percent (10.58%) - Teachers and State Employees; (ii) fifteen and fifty-eight hundredths percent (15.58%) - State Law Enforcement Officers; (iii) eight and thirty-seven hundredths percent (8.37%) - University Employees' Optional Retirement System; (iv) twenty-six and eighty-seven hundredths percent (26.87%) - Consolidated Judicial Retirement System; and (v) forty and twenty-five hundredths percent (40.25%) - Legislative Retirement System.  Each of the foregoing contribution rates includes one and sixty-five hundredths percent (1.65%) for hospital and medical benefits.  The rate for State Law Enforcement Officers, and for the University Employees' Optional Retirement Program includes forty-two hundredths percent (0.42%) for the Disability Income Plan.  The rates for Teachers and State Employees and Law Enforcement Officers includes sixteen hundredths percent (0.16%) for the Death Benefits Plan.

––-NO TRANSFERS BETWEEN ITEMS IN THE BUDGET

Sec. 86. G.S. 143-23 (a) and (a1) are rewritten as follows:
"All appropriations now or hereafter made for the maintenance of the various departments, institutions and other spending agencies of the State, are for the purposes and/or objects enumerated in the itemized requirements of such departments, institutions and other spending agencies submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission, and/or as amended by the General Assembly.
Unless otherwise allowed by the law, no transfers may be made between line items in the General or Highway Fund certified budgets of any department, institution, or other spending agency.  A department, institution or other spending agency may spend more than was appropriated for nonsalary or nonwage line item, unless otherwise directed by the Director of the Budget.  With the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for a salary or wage line item.  The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office the reason if the amount expended for a certified General Fund or Highway Fund budget code is more than the amount appropriated for it.
Funds appropriated for salaries and wages may only be used for: salaries and wages; premium pay; overtime pay; longevity; unemployment compensation; workers' compensation; disability pay; temporary wages; contracted personal services; moving expenses; payment of accumulated annual leave; certain awards to employees; tort claims; settlement of pending litigation claims for employees and inmates; employer's Social Security, retirement, disability, and hospitalization payments; employee grievance cost, court order requirements; Industrial Commission awards; audit findings; match unanticipated federal funds; disasters; and the calling out of the National Guard.  Lapsed salary funds that become available from vacant positions may not be used for new permanent employee positions or to raise the salary of existing employees.
These provisions do not apply to the extent that the Director of the Budget finds that compliance is impossible and that deviation is necessary because of complications in the budget process that were not contemplated in these provisions.  Deviations must be reported quarterly to the Joint Legislative Commission on Governmental Operations."

PART XVI.––-MISCELLANEOUS PROVISIONS

––-REVISED GENERAL STATUTE 7A-101.  COMPENSATION.

Sec. 87.  Section 101(a) of Chapter 7A of the General Statutes 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 most recent annual estimate of population of the county, as determined by the Office of State Budget and Management, according to the following schedule:

Population	   Annual Salary

	1989-90	1990-91

Less than 99,999	$44,256	$46,920
100,000 to 199,999	50,016	53,028
200,000 and above	57,072	60,504

When a county changes from one population group to another, the salary of the clerk shall be changed July 1 to the salary appropriate for the new population group, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office.
(b)	The clerk shall receive no fees or commission by virtue of his office.  The salary set forth in this section is the clerk's sole official compensation, but if, on June 30, 1975, the salary of a particular clerk, by reason of previous but no longer authorized merit increments, is higher than that set forth in the table, that higher salary shall not be reduced during his continuance in office.
(c)	In lieu of merit and other increment raises paid to regular State employees, a clerk of superior court shall receive as longevity pay an amount equal to four and eight-tenths percent (4.8%) of the annual salary set forth in the Budget Appropriation Act payable monthly after five years of service, nine and six-tenths percent (9.6%) after 10 years of service, fourteen and four-tenths percent (14.4%) after 15 years of service, and nineteen and two-tenths percent (19.2%) after 20 years of service.  Service shall mean service in the elective position of clerk of superior court, as an assistant clerk of court and as a supervisor of clerks of superior court with the Administrative Office of Courts and shall not include a service as a deputy or acting clerk.  Service shall also mean service as a justice or judge of the General Court of Justice or as a district attorney."

––-EFFECT OF HEADINGS

Sec. 88  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.

––-EXECUTIVE BUDGET ACT REFERENCE

Sec. 89.  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.

––-MOST TEXT APPLIES ONLY TO 1991-92

Sec. 90.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1991-93 biennium, the textual provisions of this act shall apply only to funds appropriated for and activities occurring during the 1991-93 biennium.

––-SEVERABILITY CLAUSE

Sec. 91.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of the act as a whole or any part other than the part so declared to be unconstitutional or invalid.

––-EFFECTIVE DATE

Sec. 92.  Except as otherwise provided, this act becomes effective July 1, 1991.