GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	2 

SENATE BILL 1093
Appropriations Committee Substitute Adopted 6/25/92

Short Title:  Capital Appropriations/1992.	(Public)
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Sponsors:
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Referred to:  
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June 2, 1992

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE CAPITAL IMPROVEMENTS APPROPRIATIONS FOR NORTH CAROLINA FOR THE 1992-93 FISCAL YEAR, TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE, TO AMEND THE CONSTITUTION OF NORTH CAROLINA, AND TO MAKE CONFORMING STATUTORY CHANGES.
The General Assembly of North Carolina enacts:

TITLE I. CAPITAL APPROPRIATIONS

PART 1. INTRODUCTION
Section 1. The appropriations made by the 1992 General Assembly for capital improvements are for constructing, repairing, or renovating State buildings, utilities, and other capital facilities, for acquiring sites for them where necessary, and for acquiring buildings and land for State government purposes.

PART 2.  TITLE OF TITLE
Sec. 2.  This Title shall be known as "The Capital Improvements Appropriations Act of 1992".

PART 3.  PROCEDURES FOR DISBURSEMENTS

Sec. 3.  The appropriations made by the 1992 General Assembly for capital improvements shall be disbursed for the purposes provided by this Title.  Expenditure of funds shall not be made by any State department, institution, or agency, until an allotment has been approved by the Governor as Director of the Budget.  The allotment shall be approved only after full compliance with the Executive Budget Act, Article 1 of Chapter 143 of the General Statutes.  Prior to the award of construction contracts for projects to be financed in whole or in part with self-liquidating appropriations, the Director of the Budget shall approve the elements of the method of financing of those projects including the source of funds, interest rate, and liquidation period.  Provided, however, that if the Director of the Budget approves the method of financing a project, he shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.
Where direct capital improvement appropriations include the purpose of furnishing fixed and movable equipment for any project, those funds for equipment shall not be subject to transfer into construction accounts except as authorized by the Director of the Budget.  The expenditure of funds for fixed and movable equipment and furnishings shall be reviewed and approved by the Director of the Budget prior to commitment of funds.
Capital improvement projects authorized by the 1992 General Assembly shall be completed, including fixed and movable equipment and furnishings, within the limits of the amounts of the direct or self-liquidating appropriations provided, except as otherwise provided in this Title.

PART 4.  CAPITAL IMPROVEMENTS/GENERAL FUND

Sec. 4.  Appropriations are made from the General Fund for the 1992-93 fiscal year for use by the State departments, institutions, and agencies to provide for capital improvement projects according to the following schedule:

Department of Administration
(Total)	$8,417,600
1.	New Revenue Building Equipment and
  Furnishings	4,978,900
2.	Museum of History-Exhibits,
  Furnishings and Equipment	2,963,700
3.	Museum of History-N.C. Sports Hall of Fame	475,000

Department of Agriculture
(Total)	8,500,000
1.	New Agronomics Lab	7,500,000
2.	Tidewater Research and Extension Center
  Restore Funding for completion of the Center	1,000,000

Department of Crime Control and Public Safety
1.	Fayetteville Armory
  Requirements	2,295,000
  Receipts-Federal & Local	1,980,000
  State Appropriation	315,000

Department of Cultural Resources
1.	Art Museum-Amphitheater
  Requirements	1,476,800
  Receipts-Donations	1,476,800
  State Appropriations	        -

Department of Environment, Health, and Natural Resources
(Total)	8,054,300
1.	N.C. Zoo - Final Phase of North America
  Requirements	6,887,800
  Receipts - Private	       1,061,800
  State Appropriation	5,826,000
2.	Civil Works/Water Resources-Matching
  for Federal Funds	2,000,000
3.	County Forestry Headquarters-Warren
  County-Equipment/Office Buildings	228,300

Department of Human Resources
(Total)	12,951,800
1.	Murdoch Center-Meadowview Cottage
Renovation 	1,546,500
2.	Dix Campus-Male Wing Renovation	3,004,600
3.	Umstead Hospital-New Psychiatric Unit	7,499,700
4.	Western Carolina Center-Reroof Walkways	699,800
	                                  -Boiler Replacement	201,200

University Board of Governors
(Total)	2,550,000
1.	N.C. State University-Restore Funds for
  Site Preparation-Centennial Center	2,000,000
2.	N.C. State University-Castle Hayne
  Horticultural Research Station-Restore
  Funds for Greenhouse and Support Facilities	350,000
3.	4-H Camps-Repairs and Renovations	200,000

Community Colleges
1.	Anson/Stanly - Restore funds for Union County
  Satellite	930,000

Office of State Budget & Management
(Total)	10,582,650
1.	Reserve for Repairs & Renovations-Statewide	8,582,650
2.	Critical School Facility Needs Fund - To
  correct a discrepancy in the manner in
  which grants were made from this fund	2,000,000

TOTAL CAPITAL IMPROVEMENTS/GENERAL FUND	$52,301,350

NONRECURRING APPROPRIATIONS/GENERAL FUND

1.	UNC Board of Governors:
a. Funds to link Appalachian State University,
  UNC-Wilmington to CONCERT Communications
  Network operated by MCNC	1,675,000
b. North Carolina State University-Patent Research Funds	97,000
2.	Community Colleges:
	  Funds to purchase equipment and books	5,000,000
  Nursing Diploma Program Funds	281,650
3.	Cultural Resources:
  Grants for local arts/historic sites	295,000
4.	Department of Public Instruction:
  Expenses involved with move to new
  education building	300,000
5.	Environment, Health, and Natural Resources
  Funds for Soil and Water Conservation
  Supervisors' travel and expenses	50,000

TOTAL NONRECURRING/GENERAL FUND	$7,698,650

GRAND TOTAL GENERAL FUND	$60,000,000

PART 5.  OFFICE OF STATE BUDGET AND MANAGEMENT

Requested by:   Senator Basnight
LOCAL WATER/SEWER FUNDS
Sec. 5.   (a)	Notwithstanding the provisions of Sections 3 and 28 of Chapter 689 of the 1991 Session Laws, the Office of State Budget and Management shall transfer four million four hundred thousand dollars ($4,400,000), from the funds appropriated to the Reserve for Reimbursements to Local Governments and Shared Tax Revenues for the 1992-93 fiscal year, to the Clean Water Revolving Loan and Grant Fund created in G.S. 159G-5.
(b) Notwithstanding the provisions of G.S. 105-116, the Secretary of Revenue shall reduce the amount to be transferred to municipalities on or before December 15, 1992, pursuant to G.S. 105-116(d), by an amount equal to three million three hundred thousand dollars ($3,300,000).  The Secretary of Revenue shall allocate this reduction on a pro rata basis among the municipalities entitled to receive a quarterly installment pursuant to G.S. 105-116(d) on or before December 15, 1992.
(c) Notwithstanding the provisions of G.S. 105-113.82, the Secretary of Revenue shall reduce the amount to be distributed to counties and cities for the 1992-93 fiscal year pursuant to G.S. 105-113.82 by an amount equal to one million one hundred thousand dollars ($1,100,000).  The Secretary of Revenue shall allocate this reduction on a pro rata basis among the counties and cities entitled to receive a distribution pursuant to G.S. 105-113.82 for the 1992-93 fiscal year.
(d) The General Assembly finds that the purpose of the allocation provided in this section is to meet the funding needs of local governments for water supply and wastewater treatment facilities, as requested by local governmental units.

Requested by:   Senator Basnight
REPAIRS AND RENOVATIONS/OLD EDUCATION AND REVENUE BUILDINGS
Sec. 6. The Joint Legislative Commission on Governmental Operations may study and make recommendations to the Office of State Budget and Management and to the Office of State Construction of the Department of Administration on repairs and renovations to the Old Education and Old Revenue Buildings.  In conducting its study, the Commission shall make recommendations pertaining to the following:
(1)	The amount to be expended from the Reserve for Repairs and Renovations for expediting the relocation of State agencies currently occupying leased space into the Old Education and Old Revenue Buildings;
(2)	Which of the State agencies currently occupying leased space should be moved into the Old Education and Old Revenue Buildings;
(3)	The extent to which repairs and renovations are needed immediately and those that may be needed in the future, and whether such repairs and renovations may be phased in over a period of time; and
(4)	Any other recommendations the Commission deems appropriate for ensuring that repairs and renovations to the Old Education and Old Revenue Buildings are carried out expeditiously and efficiently.

Requested by:  Senator Marvin
HEAD START CAPITAL IMPROVEMENTS
Sec. 6.1.  Of the funds appropriated in this Title to the Reserve for Repairs and Renovations, the Office of State Budget and Management shall transfer the sum of two million dollars ($2,000,000) for the 1992-93 fiscal year to the Division of Economic Opportunity, Department of Human Resources, to provide new Head Start facilities and centers.

PART 6.  GENERAL ASSEMBLY

Requested by:   Senator Basnight
EXTENSION OF THE TERRITORIAL JURISDICTION OF THE LEGISLATIVE SERVICES COMMISSION
Sec. 7.  (a) G.S. 120-32.1 reads as rewritten:
"§ 120-32.1. Use and maintenance of buildings and grounds.
(a)	The Legislative Services Commission shall:
(1)	Establish policy for the use of the State legislative buildings and grounds;
(2)	Maintain and care for the State legislative buildings and grounds, but the Commission may delegate the actual work of the maintenance of those buildings and grounds to the Department of Administration, which shall perform the work as delegated;
(3)	Provide security for the State legislative buildings and grounds;
(4)	Allocate space within the State legislative buildings and grounds; and
(5)	Have the exclusive authority to assign parking space in the State legislative buildings and grounds.
	(b) The Legislative Administrative Officer shall have posted the rules adopted by the Legislative Services Commission under the authority of this section in a conspicuous place in the State Legislative Building and the Legislative Office Building.  The Legislative Administrative Officer shall have filed a copy of the rules, certified by the chairman of the Legislative Services Commission, in the office of the Secretary of State and in the office of the Clerk of the Superior Court of Wake County. When so posted and filed, these rules shall constitute notice to all persons of the existence and text of the rules. Any person, whether on his own behalf or for another, or acting as an agent or representative of any person, firm, corporation, partnership or association, who knowingly violates any of the rules adopted, posted and filed under the authority of this section is guilty of a misdemeanor and upon conviction shall be punished by a fine or imprisonment in the discretion of the court, or by both such fine and imprisonment. Any person, firm, corporation, partnership or association who combines, confederates, conspires, aids, abets, solicits, urges, instigates, counsels, advises, encourages or procures another or others to knowingly violate any of the rules adopted, posted and filed under the authority of this  section is guilty of a misdemeanor and upon conviction shall be punished by a fine or imprisonment in the discretion of the court, or by both such fine and imprisonment.
(c)	”The Legislative Services Commission may cause to be removed at the owner's expense any vehicle parked in the State legislative buildings and grounds in violation of the rules of the Legislative Services Commission and may cause to be removed any vehicle parked in any State-owned parking space leased to an employee of the General Assembly where the vehicle is parked without the consent of the employee to whom the space is leased.
(d)	For the purposes of this section, the term ‘State legislative buildings and grounds' means:
(1)	At all times:
a.	The State Legislative Building and the area between outer walls of the State Legislative Building and the near curbline of those sections of Jones, Wilmington, Lane, and Salisbury Streets which border land on which the State Legislative Building is situated;
b.	The Legislative Office Building and the areas between its outer walls and the near curbline of those sections of Lane and Salisbury Streets that border the land on which it is situated;
c.	Any State-owned parking lot which is leased to the General Assembly; and
d.	The bridge between the State Legislative Building and the State Governmental Mall.
(2)	In addition, the surface area to the far curbline of those sections of Jones, Wilmington, Lane, and Salisbury Streets which border the land on which the State Legislative Building is situated:
a.	When the General Assembly is in regular or extra session; and
b.	On other days on which one or more standing committees of either or both houses of the General Assembly are meeting and the Legislative Administrative Officer determines that additional parking is needed for the functioning of the General Assembly and files notice of the committee's or committees' meetings and his finding that additional parking is needed in the office of the Secretary of State and that of Clerk of the Superior Court of Wake County."
(b) G.S. 120-32.2 reads as rewritten:
"§ 120-32.2. State Legislative Building special police.
All members of the State Legislative Building security force employed by the Legislative Services Office are special policemen, and within the State legislative buildings and grounds, as defined in G.S. 120-32.1(d), they shall have all the powers of policemen of cities.
””The Legislative Building security force has the exclusive authority and responsibility for enforcing the parking rules of the Legislative Services Commission."
(c)	This section becomes effective October 1, 1992, but does not affect the validity of rules adopted by the Legislative Services Commission under the prior law.

Requested by:   Senator Martin of Pitt
RAILROAD ADVISORY COMMISSION MEMBERSHIP CHANGE
Sec. 8.  Section 3.1 of Chapter 754 of the 1991 Session Laws reads as rewritten:
"Sec. 3.1.  There is created the Railroad Advisory Commission.  The Commission shall consist of 10 members, appointed as follows:
(1)	Two members appointed by the Governor, one of whom shall be knowledgeable about the railroad business and one of whom shall be an advocate of passenger rail service;
(2)	The Speaker of the House of Representatives or another member of the House of Representatives serving as the Speaker's designee, and two other members of the House of Representatives appointed by the Speaker of the House of Representatives;
(3)	The President Pro Tempore of the Senate or another member of the Senate serving as the President Pro Tempore's designee, and two other members of the Senate appointed by the President Pro Tempore of the Senate;
(4)	The Secretary of Transportation, or a member of his staff appointed by the Secretary of Transportation; and
(5)	The State Treasurer, or a member of his staff appointed by the Treasurer.
	The Attorney General or the Attorney General's designee shall also participate and attend meetings of the Commission in accordance with Section 3.12 of this Part."

PART 7.  DEPARTMENT OF ADMINISTRATION

Requested by:   Senator Basnight
NORTH CAROLINA AQUARIUMS COMMISSION
Sec. 9.  (a) Chapter 143B of the General Statutes is amended by adding a new Part to read:
“Part 8C.  North Carolina Aquariums Commission.
"§ 143B-390.15.  North Carolina Aquariums Commission – creation.
There is hereby created the North Carolina Aquariums Commission.
"§ 143B-390.16.  North Carolina Aquariums Commission – organization, powers, and duties.
(a)	The Commission shall consist of 12 members appointed as follows:
(1)	Three members appointed by the Governor including one member designated by the Governor to serve as chair of the Commission,
(2)	Three members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121,
(3)	Three members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121, and
(4)	Three members appointed by the North Carolina Aquarium Society, Inc., each of whom resides in one of the counties where the North Carolina Aquariums are located: Carteret, Dare, and New Hanover.
(b)	Commission members shall serve for terms of four years, beginning July 1, 1992, and may be removed at any time by the appointing  authority.  If a vacancy on the Commission occurs, the appointing authority shall appoint a replacement to serve for the unexpired term.
(c)	The Commission shall meet upon the call of the chair.
(d)	The Secretary of Administration shall provide staff support for Commission activities and travel reimbursement for Commission members.
(e)	The Commission shall establish a schedule of uniform entrance fees for the North Carolina Aquariums and may revise that schedule from time to time.  The Commission shall recommend expenditures from the North Carolina Special Aquariums Fund, hereafter established.
(f)	The North Carolina Special Aquariums Fund, hereafter ‘Fund', is hereby created, and shall be a special and nonreverting fund.  The Fund shall be used only for repair, maintenance, and educational exhibit construction at existing aquariums.  The Fund may also be used to match private funds that are raised for these purposes.
(g)	Beginning June 30, 1992, the Department of Administration shall retain, at the end of each fiscal year, unbudgeted entrance fee receipts from the North Carolina Aquariums and deposit the receipts into the Fund.  The Secretary of Administration may expend funds only upon the recommendation of the Commission and the approval of the Office of State Budget and Management.  The Department of Administration shall provide an annual report showing the use of aquarium entrance fees collected to the Office of State Budget and Management and to the Fiscal Research Division of the Legislative Services Office."
(b) G.S. 120-123 is amended by adding a new subdivision to read:
"(59)	The North Carolina Aquariums Commission, as established by G.S. 143B-15."

PART 7A.  DEPARTMENT OF CULTURAL RESOURCES

Requested by: Senator Basnight
GRANTS FOR LOCAL ARTS/HISTORIC SITES
Sec. 9.1.  Of the funds appropriated in this Title to the Department of Cultural Resources for grants for local arts/historic sites, the sum of thirty thousand dollars ($30,000) shall be allocated to the Eastern Music Festival to support activities commemorating the thirtieth anniversary of the Festival, the sum of fifty thousand dollars ($50,000) shall be allocated to the North Carolina Shakespeare Festival for equipment and other purposes, and a sufficient sum shall be allocated for the addition of an auditorium for the Visitors Center at the Charles B. Aycock Historic Site.

PART 8.  PUBLIC SCHOOLS

Requested by:  Senator Basnight
SCHOOL CRITICAL NEEDS FUNDS
Sec. 10.  The General Assembly finds that when the Commission on School Facility Needs established a schedule in 1988 for making grants from the Critical School Facility Needs Fund, in accordance with G.S. 115C-489.2(b), the data, although lawful, that the Commission used to determine per capita income was not the most current data available at the time that the Commission established the schedule.  As a result of discrepancies in the data, the Tyrrell County School Administrative Unit was ranked 57th on the schedule instead of 32nd, and the Tyrrell County School Administrative Unit has not received the grant it would have received had the most current data been used.  To remedy this problem, funds are appropriated in this Title from the General Fund to the Office of State Budget and Management for the Critical School Facility Needs Fund in the sum of two million dollars ($2,000,000) for the 1992-93 fiscal year for a grant for the Tyrrell County Schools.

PART 9.  COMMUNITY COLLEGES

Requested by: Senator Richardson
ASSISTANCE TO HOSPITAL NURSING/FUND DISTRIBUTION CONTINUED
Sec. 11.  (a) Funds appropriated in this Title 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, for each full-time student duly enrolled in the program as of December 1, 1991, and on condition that accreditation is maintained.  The amount per student shall not exceed eight hundred fifty dollars ($850.00).  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.
(b) This section expires June 30, 1993.

PART 10.  COLLEGES AND UNIVERSITIES

Requested by:  Senator Basnight
HIGH DENSITY POLYESTER PATENT RESEARCH AND TECHNOLOGY TRANSFER COMPLETION
Sec. 12. Of the funds appropriated to the Board of Governors of The University of North Carolina in this Title, the sum of ninety-seven thousand dollars ($97,000) shall be allocated to North Carolina State University for completion of the research and technology transfer of high density polyester for which patent applications are pending.  These funds shall be repaid to the General Fund from royalties paid the North Carolina State University Patent Reserve Fund from the companies licensed to use the patents.

PART 11.  DEPARTMENT OF TRANSPORTATION

Requested by:   Senator Goldston
1992 CAPITAL CONSTRUCTION MODIFICATIONS
Sec. 13.  Section 236.1 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"Sec. 236.1.  Appropriations are made from the Highway Fund for the 1991-92 fiscal year and the 1992-93 fiscal year for use of the Department of Transportation to provide for capital improvement projects according to the following schedule:

DIVISION OF HIGHWAYS

	1991-92 1992-93

01.	Bridge Maintenance Office Complex
Supplemental - Town of Brunswick	$224,000 $      -    

02.	Equipment Shop - Carthage	- 2,247,000 

03.	Bridge Maintenance Complex -
Wadesboro	26,000 439,000 

04.	Gas Pump Canopies - Statewide	398,000 -

05.	Fencing - Statewide	171,000 - 

06.	Land Acquisition - Siler City	- - 

07.	Land Acquisition/Maintenance
Yard - Halifax	13,000 - 

08.	Land Acquisition/Maintenance
Yard - Trenton	27,000 - 

09.	Water and Sewer Connections
- Statewide	308,000 - 
-Greene County Facility	400,000 - 

10.	Division Office Complex Phase
II - Fayetteville	- 1,688,000 

11.	Division Office Addition
- Greensboro
Requirements	589,000
Less Receipts (Sale of Land)	-589,000
Appropriation	- - 

12.	Landscape Office, Warehouse
and Truck Shed - Asheville
Requirements	472,000
Less Receipts (Sale of Land)	-472,000
Appropriation	- - 

13.	Salt Storage Buildings
- Statewide	405,000 -

14.	Equipment Shop - Mocksville	511,000 - 

15.	District Office Building
- Albemarle	49,000 333,000

16.	Division of Highways/Division
of Motor Vehicles Office
Complex - Graham	67,000 - 

17.	Sign Shop - Town of Union	- -

18.	Design Equipment Shop - Meadows	- 52,000

19.	Design Equipment Shop - Spindale	- 40,000

20.	Design Equipment Shop - Washington	- 49,000

21.	Design Equipment Shop - Wentworth	- 54,000

22.	Bridge Maintenance Warehouse/Shed
- Town of Union	- -

23.	Design Sign Shop - Carthage	- 42,000

24.	Design District/Resident Engineer
Office - Marion	- 49,000

25.	Design Equipment Shop - Kinston	- 49,000

26.	Land Purchase - Robbinsville	- 17,000

27.	Land Purchase - Roxboro	- 17,000

28.	District/Resident Engineers Office
- Wilmington	- 434,000

29.	Roadside Environmental Warehouse/
Office - Marion	- 188,000

30.	Maintenance Office/Assembly
- Hudson	- 309,466

31.	Division Office (Supplement)
- Durham	- 85,000

32.	Materials and Test Lab Design-Asheville	- 34,000

33.	Highway Building - Fire Alarm
System - Raleigh	- 141,000
	______ _______ 

TOTAL DIVISION OF HIGHWAYS	$2,599,000 $6,267,466

DIVISION OF MOTOR VEHICLES

	1991-92 1992-93

01.	Upgrade Electrical Power,
Communication and Computer
Circuits - Raleigh Division
of Motor Vehicles Building	$ 216,200 $       - 

02.	Building Addition - Wilmington	221,900 - 

03.	Building Addition - Statesville	170,075 - 

04.	New Office Building - Asheville	635,100 - 

05.	Roof Replacement (7 Locations)	100,500 - 

06.	Resurface Parking Lots
(6 Locations)	107,500 - 

07.	Roof Replacement (7 Locations)	- 103,100 

08.	Resurface Parking Lots (6 Locations)	- 111,900 

09.	Building Addition - Goldsboro	- 167,630 

10.	Building Addition - Whiteville	- 164,770 

11.	Building Addition - Hillsborough	- 179,200 

12.	Building Addition - Kinston	- 179,200 

13.	Building Addition - Jacksonville	- 174,800 

14.	Reserve to Make Restrooms 
Handicapped Accessible in DMV
Facilities	25,000 25,000 
	______ _______ 

TOTAL DIVISION OF MOTOR VEHICLES	$1,476,275 $1,105,600 

CRIME CONTROL AND PUBLIC SAFETY

01.	State Highway Patrol - Troop H
Headquarters - New Building 	$190,000 $1,348,900 

02.	State Highway Patrol - Upgrade
and Replace Underground
Fuel Tanks	  300,000   300,000  

TOTAL CRIME CONTROL AND
PUBLIC SAFETY	$ 490,000 $1,648,900 

GRAND TOTAL HIGHWAY FUND	$4,565,275 $9,021,966 "

Requested by:   Senator Goldston
DEPARTMENT OF TRANSPORTATION CAPITAL CONSTRUCTION FUNDS REVERSIONS
Sec. 14.  (a)	The balance of fifty-four thousand dollars ($54,000) appropriated for land acquisition in Siler City in Section 236.1 of Chapter 689 of the 1991 Session Laws is reverted to the Highway Fund to be reappropriated for the 1992-93 fiscal year.
(b)	The balance of one hundred eleven thousand nine hundred dollars ($111,900) appropriated to landscape the office and warehouse in Graham in Section 6 of Chapter 754 of the 1989 Session Laws is reverted to the Highway Fund to be reappropriated for the 1992-93 fiscal year.
(c)	The balance of fifty-three thousand five hundred sixty-six dollars ($53,566) for the maintenance complex in Craggy (Buncombe County) in Section 5 of Chapter 480 of the 1985 Session Laws is reverted to the Highway Fund to be reappropriated for the 1992-93 fiscal year.

Requested by:   Senator Murphy
ROADWAY IMPROVEMENTS FOR THE CENTENNIAL CENTER
Sec. 15.  From funds appropriated to the Department of Transportation for the 1992-93 fiscal year, three million three hundred thousand dollars ($3,300,000) shall be used for roadway improvements for the Centennial Center.  These improvements shall be part of a long-range plan that is to be developed by the Department of Transportation to service the Centennial Center, Carter-Finley Stadium, the State Fairgrounds, and the Government Office Complex (Blue Ridge Road).  Included in these improvements shall be widening Edwards Mill Road, a new Wade Avenue Bridge and ramps, and other off-site improvements to Trinity Road, Wade Avenue, and  West Chase Boulevard.  Authorized uses of these funds include design fees and expenses, surveying, testing, and other contingencies related to construction.

Requested by:  Senator Plyler
MOBILE CRANE STUDY
Sec. 15.1.  The Department of Transportation shall study the requests of the mobile crane industry as compared to current rules, regulations, and policies regarding permitted movement of self-propelled truck cranes.  A report detailing the results of this study shall be submitted to the Joint Legislative Highway Oversight Committee prior to the convening of the 1993 Session of the General Assembly.

Requested by:  Senator Plyler
TRAFFIC CONTROL FUNDS
Sec. 15.2.  G.S. 20-79.7 reads as rewritten:
"§ 20-79.7.  Special Registration Plate Fund.
(a)	Fund. – The Special Registration Plate Fund is established.  The Fund consists of the revenue derived from one-half of the additional fee collected for a personalized registration plate and all of the additional fee collected for any other special registration plate issued under G.S. 20-79.4.  The Commissioner shall deduct the costs of the registration plates, including the costs of issuing, handling, and advertising the availability of the special plates from the Fund.
	(c)	Use of Funds. – The revenue in the Fund shall be transferred quarterly as follows:
(1)	Thirty-three percent (33%) to the account of the Department of Economic and Community Development to aid in financing out-of-state print and other media advertising under the program for the promotion of travel and industrial development in this State.
(2)	Fifty percent (50%) to the Department of Transportation to be used solely for the purpose of beautification of highways other than those designated as interstate. These funds shall be administered by the Department of Transportation for beautification purposes not inconsistent with good landscaping and engineering principles.
(3)	Seventeen percent (17%) to the account of the Department of Human Resources to promote travel accessibility for disabled persons in this State.  These funds shall be used to collect and update site information on travel attractions designated by the Department of Economic and Community Development in its publications, to provide technical assistance to travel attractions concerning accommodation of disabled tourists, and to develop, print, and promote the publication ACCESS NORTH CAROLINA as provided in G.S.168-2.  Any funds allocated for these purposes that are neither spent nor obligated at the end of the fiscal year shall be transferred to the Department of Administration for removal of man-made barriers to disabled travelers at State-funded travel attractions.  Guidelines for the removal of man-made barriers shall be developed in consultation with the Department of Human Resources."
Sec. 2.  G.S. 136-44.2 reads as rewritten:
"§ 136-44.2.  Budget and appropriations.
The Director of the Budget shall include in the ‘Current Operations Appropriations Bill' an enumeration of the purposes or objects of the proposed expenditures for each of the construction and maintenance programs for that budget period for the State primary, secondary, urban, and State parks road systems.  The State primary system shall include all portions of the State highway system located outside municipal corporate limits which are designated by N.C., U.S. or Interstate numbers.  The State secondary system shall include all of the State highway system located outside municipal corporate limits that is not a part of the State primary system.  The State urban system shall include all portions of the State highway system located within municipal corporate limits.  The State parks system shall include all State parks roads which are not also part of the State highway system.
All construction and maintenance programs for which appropriations are requested shall be enumerated separately in the budget.  Programs that are entirely State funded shall be listed separately from those programs involving the use of federal-aid funds.  Proposed appropriations of State matching funds for each of the federal-aid construction programs shall be enumerated separately as well as the federal-aid funds anticipated for each program in order that the total construction requirements for each program may be provided for in the budget.  Also, proposed State matching funds for the highway planning and research program shall be included separately along with the anticipated federal-aid funds for that purpose.
Other program categories for which appropriations are requested, such as, but not limited to, maintenance, channelization and traffic control, bridge maintenance, public service and access road construction, and ferry operations shall be enumerated in the budget.
The Department of Transportation shall have all powers necessary to comply fully with provisions of present and future federal-aid acts.  No federally eligible construction project may be funded entirely with State funds unless the Department of Transportation has first consulted with the Joint Legislative Commission on Governmental Operations.  For purposes of this section, ‘federally eligible construction project' means any construction project except secondary road projects developed pursuant to G.S. 136-44.7 and 136-44.8 eligible for federal funds under any federal-aid act, whether or not federal funds are actually available.
The ‘Current Operations Appropriations Bill' shall also contain the proposed appropriations of State funds for use in each county for maintenance and construction of secondary roads, to be allocated in accordance with G.S. 136-44.5 and 136-44.6.  State funds appropriated for secondary roads shall not be transferred nor used except for the construction and maintenance of secondary roads in the county for which they are allocated pursuant to G.S. 136-44.5 and 136-44.6.
In the event receipts and increments to the State Highway Fund shall be more than the appropriations made for the preceding fiscal year, such excesses shall be allocated by the Director of the Budget to the Department of Transportation for school and industrial access roads and unforeseen happenings or state of affairs requiring prompt action, with fifty percent (50%) of the balance to be allocated to the State secondary roads program on the basis of need as determined by the Department of Transportation and the remaining fifty percent (50%) to be allocated in accordance with G.S. 136-44.5.
The Department of Transportation may provide for costs incurred or accrued for traffic control measures to be taken by the Department at major events which involve a high degree of traffic concentration on State highways, and which cannot be funded from regular budgeted items.  This authorization applies only to events which are expected to generate 30,000 vehicles or more per day.  The Department of Transportation shall provide for this funding by allocating and reserving up to one hundred thousand dollars ($100,000) before any other allocations from the appropriations for State maintenance for primary, secondary, and urban road systems are made, based upon the same proportion as is appropriated to each system."

PART 12.  DEPARTMENT OF CORRECTION

Requested by: Senators Plyler, Marvin
PRISON BOND REALLOCATION/ADMINISTRATION CHANGES
Sec. 16. (a) Section 239(c) of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(c)	Descriptions, Custodial Levels, Beds, Projected Allocations.  Appropriations are made from bond proceeds for use by the Departments of Correction and Human Resources to provide for capital improvement projects as herein provided.
The proceeds of bonds and notes shall be expended for paying the cost, as defined in the bond act, of prison and youth services facilities, to the extent and as provided in this section and subject to change as herein provided, for the following projects:

DEPARTMENT OF CORRECTION

Project Description	Custodial	Beds
	Level
Nash Correctional Institution	Close	128
Marion Correctional Center     	Close  	752
Cherry Correctional Center	Min	500
		Odom Correctional Institution     	Close  	 192
Pasquotank Youth Institution   	Close  	664
NCCIW	Close/Med	256
NCCIW - Repairs
and Renovations
Lumberton Correctional Center	Med	312
Fountain Correctional Center	Min	100
Greene Correctional Center 	Min	200
		Brown Creek Sewing Plant
Pender Furniture Refurbishing
Facility
Caswell Sewing and Tailoring
Equipment
Harnett Dining Hall
Provide dayrooms at 49 units
to comply with Small v.
Martin lawsuit
Subtotal	3,104	$101,380,310

Contingencies
TOTAL	$103,380,310

DEPARTMENT OF HUMAN RESOURCES-DIVISION OF YOUTH SERVICES

7 Secure/nonsecure group homes
9 beds added to Pitt Detention Ctr.
Renovate unused dorms & upgrade
to meet American Correctional
Association Standards
Dillon secure unit, counseling
space, & fencing at 5 facilities
Conversion of dorms to individual
rooms
Increase number of transition
beds - step down & independent
living for Training Schools
	$9,119,690"
(b) Section 239(f) of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(f)	Administration.  With respect to facilities authorized for the Department of Correction, the Office of State Budget and Management may contract for and supervise all aspects of administration, technical assistance, design, construction or demolition of prison facilities in order to implement the providing of prison facilities under the provisions of this act without being subject to the requirements of the following statutes and rules implementing those statutes:  G.S. 143-135.26(1), 143-128, 143-129, 143-131, 143-132, 143-134, 143-135.26, 113A-1 through 113A-10, 113A-50 through 113A-66, 133-1.1(g), and 143-408.1; provided, however, of the funds allocated under the provisions of this act for the construction of prison facilities, the Office of State Budget and Management shall have a verifiable ten percent (10%) goal for participation by minority and women-owned businesses.  All contracts for the design, construction, or demolition of prison facilities shall include a penalty for failure to complete the work by a specified date.
The proposals for prison facilities authorized in this section shall be invited by advertisement in newspapers having general circulation in the State. The form of advertisement shall be prepared in the form of Section 301 of the State Construction Manual of the Department of Administration, and shall be published in one issue of the newspaper. A minimum of at least seven full days shall lapse between the date of publication and the date of the opening of bids. Initiation of the advertisement shall be by the Office of State Budget and Management.
The Office of State Budget and Management shall consider alternative delivery systems that could expedite the delivery of prison facilities.  Such delivery systems as design-build, using modular or conventional building systems, shall be considered.  However, in order for such alternatives to be used, the Department of Correction must approve the proposed design for operational programming and cost of operations and maintenance.
The Office of State Budget and Management shall involve the Office of State Construction of the Department of Administration in all aspects of the projects to ensure that all prison facilities are constructed consistent with Office of State Construction standards and procedures.  Such involvement shall include but not be limited to the review of plans and specifications for each project prior to the award of contracts, attendance at scheduled project meetings, on-site inspections, review of all change orders, final inspections, review of punch lists of project deficiencies and written verification of the correction of such deficiencies, and certification of the identity of the designer of record on each project.
The Office of State Budget and Management shall involve the Department of Correction in all aspects of the projects to the extent that such involvement relates to the Department's Program needs and to its responsibility for the care of the prison population.
The Office of State Construction, the Department of Insurance, and the Department of Correction shall immediately report any concerns regarding the prison construction program to the Office of State Budget and Management.  Any concerns not satisfactorily resolved with the Office of State Budget and Management shall be reported immediately to the Joint Legislative Commission on Governmental Operations.  The Office of State Construction, the Department of Insurance, and the Department of Correction shall report quarterly to the Joint Legislative Commission on Governmental Operations on their involvement with the Office of State Budget and Management and the project manager in the prison construction program."

PART 13.  DEPARTMENT OF HUMAN RESOURCES

Requested by:   Senator Basnight
VOCATIONAL REHABILITATION MOTOR POOL EXEMPTION
Sec. 17.  Notwithstanding G.S. 143-341(8)i.3., the Division of Vocational Rehabilitation Services, Department of Human Resources, may use funds available to it to replace and operate those motor vehicles under its ownership, custody, or control that are used primarily to transport clients being served under the Rehabilitation Act of 1973, Public Law 93-112, as amended.

Requested by:   Senator Basnight
EASTERN REGIONAL VOCATIONAL REHABILITATION FACILITY FUNDS
Sec. 18.  Of the funds appropriated in this Title to the Reserve for Repairs and Renovations, the sum of three hundred thousand dollars ($300,000) for the 1992-93 fiscal year shall be allocated to the Division of Vocational Rehabilitation Services, Department of Human Resources, for capital improvements for the Eastern Regional Vocational Rehabilitation Facility.

Requested by:   Senator Basnight
DOBBS SCHOOL RELOCATION FUNDS
Sec. 19.  Notwithstanding any other provisions of law, funds allocated to the Department of Human Resources for renovations to The Dobbs School from the North Carolina Prison and Youth Services Bond Fund by Section 239 of Chapter 689 of the 1991 Session Laws, shall be used to begin the process of constructing facilities for the relocation of The Dobbs School to land currently allocated to the Department of Human Resources and adjacent to Caswell Center.

PART 14.  DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Requested by:   Senator Martin of Pitt
WATER RESOURCES DEVELOPMENT FUNDS
Sec. 20.  (a)	Of the funds appropriated to the Department of Environment, Health, and Natural Resources for the 1992-93 fiscal year, the sum of two million dollars ($2,000,000) shall be used for water resources development projects.  The Department shall fund the following projects, whose estimated costs are as indicated:
(1)	Wilmington Harbor	$ 750,000
	Deepening Study

(2)	Aquatic Plant Control	35,000

(3)	Jordan Lake Water Supply	110,000
	Repayment & Operation

(4)	Lower Creek Flood	161,000
	Control-Lenoir

(5)	Morehead City	165,000
	Harbor Deepening

(6)	Beaufort Harbor	80,000

(7)	Wilmington Harbor	449,000
	Navigation

(8)	Cape Fear River Above Wilmington
	Navigation	100,000

(9)	State-Local Water Resources Development
	Projects	150,000.

(b)	Where the actual costs are different from the estimated costs under subsection (a) of this section, the Department may adjust the allocations among projects as needed.  If any projects listed in subsection (a) of this section are delayed and the budgeted State funds cannot be used during the 1992-93 fiscal year, or if the projects listed in subsection (a) of this section are accomplished at a lower cost, the Department may use the resulting fund availability to fund:
(1)	Corps of Engineers project feasibility studies, or
(2)	Corps of Engineers projects whose schedules have advanced and require State matching funds in fiscal year 1992-93, or
(3)	State-local Water Resources Development Projects.
Funds not expended or encumbered for these purposes shall revert to the General Fund at the end of the 1993-94 fiscal year.
(c)	Beginning October 1, 1992, the Department shall make quarterly reports on the use of these funds to the Joint Legislative Commission on Governmental Operations, the Director of the Fiscal Research Division of the Legislative Services Office, and the Office of State Budget and Management.  Each report shall include:
(1)	All projects listed in this section;
(2)	The estimated cost of each project;
(3)	The date work on each project began or is expected to begin;
(4)	The date work on each project was completed or is expected to be completed; and 
(5)	The actual cost of each project.
The quarterly reports shall also show those projects advanced in schedule, those projects delayed in schedule, and an estimate of the amount of funds expected to revert to the General Fund.

PART 15.  DEPARTMENT OF AGRICULTURE

JOINT LEGISLATIVE COMMISSION ON GOVERNMENTAL OPERATIONS/ FARMERS MARKET STUDY
Sec. 21.  The Joint Legislative Commission on Governmental Operations may study the current farmers markets and the feasibility of funding additional farmers markets in North Carolina.
The Commission may report its findings and recommendations to the 1993 General Assembly.

PART 16.  MISCELLANEOUS PROVISIONS

Requested by: Senators Basnight, Plyler
RESERVE FOR ADVANCE PLANNING
Sec. 22.  The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on how it intends to spend funds from the Reserve for Advance Planning at least 45 days before it spends the funds.
	The Office of State Budget and Management shall also report the results of any project on which it uses funds from the Reserve for Advance Planning to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division.

Requested by:  Senators Basnight, Plyler
ENCUMBERED APPROPRIATIONS AND PROJECT RESERVE FUND
Sec. 23.  When each capital improvement project appropriated by the 1992 General Assembly, other than those projects under the Board of Governors of The University of North Carolina, is placed under construction contract, direct appropriations shall be encumbered to include all costs for construction, design, investigation, administration, movable equipment, and a reasonable contingency.  Unencumbered direct appropriations remaining in the project budget shall be placed in a project reserve fund credited to the Office of State Budget and Management.  Funds in the project reserve may be used for emergency repair and renovation projects at State facilities with the approval of the Director of the Budget.  The project reserve fund may be used, at the discretion of the Director of the Budget, to allow for award of contracts where bids exceed appropriated funds, if those projects supplemented were designed within the scope intended by the applicable appropriation or any authorized change in it, and if, in the opinion of the Director of the Budget, all means to award contracts within the appropriation were reasonably attempted.  At the discretion of the Director of the Budget, any balances in the project reserve fund shall revert to the original source.

Requested by: Senators Basnight, Plyler
PROJECT COST INCREASE
Sec. 24.  Upon the request of the administration of a State department or institution, the Director of the Budget may, when in his opinion it is in the best interest of the State to do so, increase the cost of a capital improvement project.  Provided, however, that if the Director of the Budget increases the cost of a project, he shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.  The increase may be funded from gifts, federal or private grants, special fund receipts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, or direct capital improvement appropriations to that department or institution.

Requested by:   Senators Basnight, Plyler
NEW PROJECT AUTHORIZATION
Sec. 25.  Upon the request of the administration of any State department or institution, the Governor may authorize the construction of a capital improvement project not specifically authorized by the General Assembly if such project is to be funded by gifts, federal or private grants, special fund receipts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, or self-liquidating indebtedness.  Provided, however, that if the Director of the Budget authorizes the construction of such a capital improvement project, he shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.

Requested by:   Senators Basnight, Plyler
ADVANCE PLANNING OF CAPITAL IMPROVEMENT PROJECTS
Sec. 26.  Funds which become available by gifts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, federal or private grants, receipts becoming a part of special funds by act of the General Assembly or any other funds available to a State department or institution may be utilized for advance planning through the working drawing phase of capital improvement projects, upon approval of the Director of the Budget.  The Director of the Budget may make allocations from the Advance Planning Fund for advance planning through the working drawing phase of capital improvement projects, except that this revolving fund may not be utilized by the Board of Governors of The University of North Carolina or the State Board of Community Colleges.

Requested by:   Senators Basnight, Plyler
APPROPRIATIONS LIMITS/REVERSION OR LAPSE
Sec. 27.  Except as permitted in previous sections of this Title, the appropriations for capital improvements made by the 1991 General Assembly may be expended only for specific projects set out by the 1991 General Assembly and for no other purpose.  Construction of all capital improvement projects enumerated by the 1992 General Assembly shall be commenced, or self-liquidating indebtedness with respect to them shall be incurred, within 12 months following the first day of the fiscal year in which the funds are available.  If construction contracts on those projects have not been awarded or self-liquidating indebtedness has not been incurred within that period, the direct appropriation for those projects shall revert to the original source, and the self-liquidating appropriation shall lapse; except that direct appropriations may be placed in a reserve fund as authorized in this Title.  This deadline with respect to both direct and self-liquidating appropriations may be extended with the approval of the Director of the Budget up to an additional 12 months if circumstances and conditions warrant such extension.

Requested by: Senators Basnight, Plyler
1991-92 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 28.  (a) Except where expressly repealed or amended by this Title, the provisions of Chapters 689 and 761 of the 1991 Session Laws and House Bill 1340 as ratified by the 1991 General Assembly remain in effect.
(b) Notwithstanding any modifications by this Title in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 1992-93 fiscal year in Chapters 689 and 761 of the 1991 Session Laws and House Bill 1340 as ratified by the 1991 General Assembly that applied to appropriations to  particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this Title for those same particular purposes.
Sec. 29.  This Title becomes effective July 1, 1992.

TITLE II.  STATE LOTTERY

Sec. 201. The General Statutes are amended by adding a new Chapter to read:
“Chapter 143C.
"North Carolina State Lottery.
"ARTICLE 1.
"General Provisions and Definitions.
"§ 143C-101.  Citation.
This Chapter shall be known and may be cited as the North Carolina State Lottery Act.
"§ 143C-102.  Purpose and intent.
The General Assembly declares that the purpose and intent of this Chapter is to provide additional monies to benefit the public purpose described in this Chapter without the imposition of additional or increased taxes through the implementation of a State-operated lottery.  The lottery shall be initiated at the earliest practical time and it shall be operated to maximize new revenue to the State which shall be raised in a manner consistent with the dignity of the State, the general welfare of the people, and in a manner consistent with effective business practices.
"§ 143C-103.  Laws not affected.
Nothing contained in this Chapter shall be construed to repeal or modify any existing State law with respect to gambling.  In the event of a conflict between the provisions of this Chapter and any other laws of the State of North Carolina, the provisions of this Chapter shall govern.
"§ 143C-104.  Prohibition on use of State funds.
It is the intent of this Chapter that the State-operated lottery established by this Chapter shall be a self-supporting revenue-raising agency of State government.
"§ 143C-105.  Public purpose to benefit from lottery.
The net revenues of the lottery shall be used to benefit the public purposes set forth in G.S. 143C-175.  It is the intent of this Chapter that the net revenues generated by the State-operated lottery established by this Chapter shall not supplant revenues already expended or projected to be expended for the public purpose and that lottery net revenues shall supplement rather than be used as substitute funds for the total amount of money allocated for the public purpose.
"§ 143C-106.  Allocation of revenues.
As nearly as practical, at least eighty-four percent (84%) of the total annual revenues from the sale of lottery tickets or shares, as described in this Chapter, shall be returned to the public in the form of prizes and net revenues benefiting the public purposes set forth in G.S. 143C-175.  As nearly as practical, at least fifty percent (50%) of the total annual revenues, as described in this Chapter, shall be returned to the public in the form of prizes as described in this Chapter.  Unclaimed prize money, as described in this Chapter, shall revert to the benefit of the public purpose as described in this Chapter.  As nearly as practical, no more than sixteen percent (16%) of the total annual revenues as described in this Chapter shall be allocated for payment of expenses of the lottery as described in this Chapter.  To the extent that the expenses of the lottery are less than sixteen percent (16%) of total annual revenues, any surplus funds shall also be allocated to the benefit of the public purpose as described in this Chapter.
"§ 143C-107.  Definitions.
As used in this Chapter, unless the context requires otherwise:
(1)	‘Commission' or ‘Lottery Commission' means the North Carolina State Lottery Commission, the five-member body appointed by the Governor pursuant to this Chapter to oversee the lottery and the Director.
(2)	‘Commissioner' means one of the members of the North Carolina State Lottery Commission appointed by the Governor pursuant to this Chapter to oversee the State lottery.
(3)	‘Director' means the Director of the North Carolina State Lottery appointed by the Governor pursuant to this Chapter as the chief administrator of the State lottery.
(4)	‘Game' or ‘Lottery game' means any procedure authorized by the Commission whereby prizes are distributed among persons who have paid, or unconditionally agreed to pay, for tickets or shares that provide the opportunity to win these prizes.
(5)	‘Lottery' or ‘State lottery' means the North Carolina State Lottery established and operated pursuant to this Chapter.
(6)	‘Lottery contractor' means a person with whom the North Carolina State Lottery has contracted for the purpose of providing goods and services to the North Carolina State Lottery.
(7)	‘Major procurement' means a procurement for a contract for the printing of tickets or the provision of shares for use in any lottery game, for any goods or services involving the receiving or recording of number selections in any lottery game, or for any goods or services involving the determination or generation of winners in any lottery game.
(8)	‘Person' means any natural person or corporation, trust, association, partnership, joint venture, subsidiary, or other business entity.
(9)	‘Retailer' or ‘Lottery retailer' means a person with whom the North Carolina State Lottery Commission has contracted for the purpose of selling tickets or shares in lottery games to the public.
(10)	‘Share' means any method of participation in a lottery game, other than by a ticket purchased on an equivalent basis with a ticket whether presently contemplated or developed in the future.
(11)	‘Ticket' means any tangible evidence issued by the lottery to prove participation in a lottery game.
(12)	‘Vendor' or ‘Lottery vendor' means any person who submits a bid, proposal, or offer as part of a procurement for a contract for goods or services for the North Carolina State Lottery.
"§§ 143C-108 and 143C-109:  Reserved for future codification purposes.
"ARTICLE 2.
"North Carolina State Lottery Commission.
"§ 143C-110.  Creation of Commission.
There is created a North Carolina State Lottery Commission.
"§ 143C-111.  Commission membership; appointment; vacancies; removal.
(a)	The North Carolina State Lottery Commission shall consist of five members appointed by the Governor who shall serve at the pleasure of the Governor.
(b)	The Commissioners shall be appointed for the following initial terms:  one member shall be appointed for a term of two years, one member shall be appointed for a term of three years, one member shall be appointed for a term of four years, and two members shall be appointed for terms of five years.  All succeeding appointments shall be for terms of five years.
	(c)	All initial appointments shall be made within 30 days of the effective date of this Chapter.
	(d)	Vacancies shall be filled within 30 days of their occurrence by the Governor for the unexpired portion of the term in which they occur.
"§ 143C-112.  Qualifications of Commissioners.
At least one of the Commissioners shall have a minimum of five years experience in law enforcement, and at least one of the other Commissioners shall be a certified public accountant.  No person shall be appointed as a Commissioner who has been convicted of a felony.  No more than three members of the Commission shall be of the same political party.
"§ 143C-113.  Compensation and expenses.
Commissioners shall be compensated at the rate of one hundred dollars ($100.00) for each day engaged in Commission business.  Commissioners shall be reimbursed for actual expenses incurred on Commission business, including, necessary travel expenses.
"§ 143C-114.  Powers and duties of the Commission.
The Commission shall exercise all powers necessary to effectuate the purposes of this Chapter.
"§ 143C-115.  Annual selection of chairman.
The Commission shall annually select a chairman from its membership.
"§ 143C-116.  Meetings; records.
Meetings of the Commission shall be open and public in accordance with Article 33C of Chapter 143 of the General Statutes.  Records of the Commission shall be open and available to the public in accordance with the provisions of Chapter 132 of the General Statutes.  The Commission shall meet with the Director at least monthly to make recommendations and set policy, to approve or reject reports of the Director, to adopt rules in accordance with Chapter 150B of the General Statutes, and to transact any other business that may properly be brought before it.  The chairman or a majority of the members of the Commission shall have the power to call special meetings of the Commission upon advance written notice to all of the members of the Commission and the Director.
"§ 143C-117.  Quorum; voting.
A majority of the total membership of the North Carolina Lottery Commission constitutes a quorum.  All decisions of the Commission shall be made by a majority vote.
"§ 143C-118.  Reports.
The Commission shall make quarterly and annual reports on the operation of the lottery to the Governor, Attorney General, State Treasurer, and to the General Assembly.  The reports shall include full and complete statements of lottery revenues, prize disbursements, expenses, net revenues, and all other financial transactions involving lottery funds.
"§ 143C-119:  Reserved for future codification purposes.
"ARTICLE 3.
"North Carolina State Lottery Director.
"§ 143C-120.  Appointment and removal of Director.
The Governor shall appoint a Director within 30 days of the effective date of this Chapter.  The Director shall direct the operations of the State lottery.  The Governor may remove the Director upon notification to the Commission.  The Director shall be exempt from the State Personnel Act.
"§ 143C-121.  Qualifications of the Director.
The Director shall be qualified by training and experience to direct the operations of a State-operated lottery.  No person shall be appointed Director who has been convicted of a felony.
"§ 143C-122.  Salary.
During the first fiscal year of the operation of the lottery, the Director shall receive compensation as set by the Commission and approved by the Governor.  Thereafter the compensation of the Director shall be set by the General Assembly in the Current Operations Appropriations Act.  The Director shall render full-time attention to the duties of the office.
"§ 143C-123.  Duties and powers of the Director.
The Director shall perform all duties, exercise all powers, assume and discharge all responsibilities, and carry out and effect all purposes provided by this Chapter.  The Director shall act as the Secretary and Executive Officer of the North Carolina State Lottery Commission. The Director shall act in accordance with this Chapter, the rules adopted by the Commission, and under the guidance of the Commission.
"§ 143C-124.  Power to hire.
The Director shall hire, subject to the approval of the Commission, the professional, clerical, technical and administrative personnel needed to carry out the provisions of this Chapter.  No person shall be employed by the lottery who has been convicted of a felony.  Each person employed by the lottery shall execute an authorization to allow an investigation of his background.
"§ 143C-125.  Assistant directors.
The Director may appoint, and prescribe the duties for, up to four assistant directors.  The compensation of each assistant director shall be set by the Commission and shall not exceed the Director's compensation.  The Director may designate one of the assistant directors as the deputy director.  All employees of the North Carolina State Lottery shall be exempt from the State Personnel Act.
"§ 143C-126.  Assistant director for security.
One of the assistant directors shall be responsible for a security division to assure the security, honesty, fairness, and integrity in the operation and administration of the lottery, including an examination of the background of all prospective employees, lottery vendors, and lottery contractors.  The assistant director for security shall be qualified by training and experience including at least five years of law enforcement experience and knowledge and experience in computer security.  The assistant director for security may, in conjunction with the Director, confer with the Attorney General or his designee, to promote and ensure the security, honesty, fairness, and integrity of the operation and administration of the lottery.  The assistant director for security, in conjunction with the Director, shall report any alleged violation of law to the appropriate law enforcement authority for further investigation and action.  The assistant director for security shall have peace officer status in this State.
"§ 143C-127.  Criminal identification information available to lottery; peace officer status.
Upon the request of the assistant director for security, the Attorney General and the Secretary of Crime Control and Public Safety shall furnish information to the Director and the assistant director for security, necessary to assure the security, honesty, fairness, and integrity in the operation and administration of the lottery which they have in their possession, including computerized or other information and data.  For the purpose of requesting and receiving this information, the State lottery shall be considered to be a ‘criminal justice agency' and its enforcement agents to be ‘peace officers'.  State lottery enforcement agents shall have the same authority with respect to service and execution of arrest warrants and search warrants as is conferred on other peace officers of this State.
"§ 143C-128.  Coordination with Commission.
The Director shall confer as frequently as necessary, but not less than monthly, with the Commission on the operation and administration of the lottery.  The Director shall make available for inspection by the Commission all books, records, files, documents, and other information of the lottery and shall make recommendations for the improved operation and administration of the lottery.
"§ 143C-129.  Study of lottery systems; recommendations for improvement.
The Director shall make an ongoing study of the operation and administration of the lotteries that are in operation in other states and countries, of available literature on the subject of lotteries, of federal laws which may affect the operation of the lottery, and of the reaction of the citizens of the State to existing or proposed features in lottery games.  The Director shall conduct this research in order to recommend improvements that will serve the purposes of this Chapter.  The Director may make recommendations to the Commission, to the Governor, and to the General Assembly on any matters concerning the secure, profitable, and efficient operation and administration of the lottery and the convenience of the purchasers of tickets and shares.
"§ 143C-130.  Accountability; books and records.
The Director shall make and keep books and records that accurately and fairly reflect each day's transactions, including the distribution of tickets or shares to lottery game retailers, receipt of funds, prize claims, prizes paid directly by the Commission, expenses, and all other financial transactions involving lottery funds necessary to permit preparation of daily financial statements in conformity with generally accepted accounting principles, in order to maintain daily accountability.
"§ 143C-131.  Monthly financial reports.
The Director shall make a monthly financial report to the Commission, to the Governor, to the State Treasurer, and to the General Assembly.  The report shall include a statement of all lottery revenues, prize disbursements, expenses, net revenues, and all other financial transactions involving lottery funds for the preceding month.
"§ 143C-132.  Independent study of demographics of lottery players.
Within the first six months of sales of tickets or shares to the public, the Director shall engage an independent firm experienced in demographic analysis to conduct a special study to ascertain the demographic characteristics of the players of each lottery game, including their income, age, sex, education, and frequency of participation.  This report shall be presented to the Commission, to the Governor, and to the General Assembly.  Similar studies shall be conducted on a continuing, periodic basis.
"§ 143C-133.  Independent study of effectiveness of lottery communications.
After the first full year of sales of tickets or shares to the public, the Director shall engage an independent firm experienced in the analysis of advertising, promotion, public relations, and other aspects of communications to conduct a special study of the effectiveness of the communications activities undertaken by the lottery and make recommendations to the Commission on the future conduct and future rate of expenditures for these activities.  This report shall be presented to the Commission, to the Governor, and to the General Assembly.  Similar studies shall be conducted on a continuing, periodic basis.
"§ 143C-134.  Independent audit of lottery security.
The Director shall, in addition to all other security measures, engage an independent firm experienced in security procedures, including computer security and systems security, to conduct a continuing comprehensive study and evaluation of all aspects of security in the operation of the lottery.  The study shall include:
(1)	Personnel security;
(2) 	Lottery game retailer security;
	(3)	Lottery contractor security;
	(4)	Security of manufacturing operations of lottery contractors;
	(5)	Security against ticket counterfeiting, alteration, and other means of fraudulently winning; security of drawings among entries or finalists;
	(6)	Computer security;
	(7)	Data communications security;
	(8)	Database security;
	(9)	Systems security;
	(10)	Lottery premises and warehouse security;
	(11)	Security in distribution;
	(12)	Security involving validation and payment procedures;
	(13)	Security involving unclaimed prizes;
	(14)	Security aspects applicable to each particular lottery game;
	(15)	Security of drawings in games where winners are determined by drawings of numbers;
	(16)	Any other aspects of security applicable to any particular lottery game and to the lottery and its operations.
The portion of the security audit report containing the overall evaluation of the lottery in terms of each aspect of security shall be presented to the Commission, to the Governor, and to the General Assembly.  The portion of the security audit report containing specific recommendations shall be confidential and shall be presented only to the Director, to the assistant director for security, and to the Commission.  Similar audits of security shall be conducted biennially thereafter.
"§§ 143C-135 to 143C-139:  Reserved for future codification purposes.
"ARTICLE 4.
"Operation of Lottery.
"§ 143C-140.  Initiation and operation of lottery.
The Commission shall initiate operation of the lottery on a continuous basis at the earliest feasible and practical time.  The lottery shall be initiated and shall continue to be operated so as to produce the maximum amount of net revenues to benefit the public purpose described in this Chapter consistent with the purposes stated in G.S. 143C-102.  Other departments, boards, commissions, and agencies of the State and their officers shall cooperate with the Commission to aid the Commission in fulfilling these objectives.
"§ 143C-141.  Types of lottery games.
(a)	Upon the recommendation of the Director, the Commission shall adopt rules, in the manner prescribed by Chapter 150B of the General Statutes specifying the types of lottery games to be conducted by the lottery, including but not limited to, instant lotteries, on-line games, and other games traditional to the lottery, provided, however:
(1)	No lottery game may use the theme of bingo, dog racing, or horse racing;
(2)	No lottery game may be based on the outcome of a particular sporting event or on the results of a series of sporting events;
(3)	In lottery games using tickets, each ticket in a particular game shall bear a unique number distinguishing it from every other ticket in that lottery game;
(4)	No name or photograph of an elected official shall appear on the tickets of any lottery game; and
(5)	In games using electronic computer terminals or other devices, no coins or currency shall be dispensed to players from those electronic computer terminals or devices.
	(b)	The Commission may authorize the use of any type of lottery game that has been conducted by any state government-operated lottery in the United States including, but not limited to, the sale of instant tickets or shares by electronic computer terminals or devices, or any other type of lottery game that will achieve the revenue objectives of the lottery consistent with the purposes stated in G.S. 143C-102.
"§  143C-142.  Number and value of prizes.
Upon the recommendation of the Director, the Commission shall adopt rules as prescribed by Chapter 150B of the General Statutes that specify the number and value of prizes for winning tickets or shares in each lottery game including cash prizes, merchandise prizes, prizes consisting of deferred payments or annuities, and prizes of tickets or shares in the same lottery game or other lottery games conducted by the lottery, provided:
(1)	In lottery games using tickets with preprinted winners, the overall estimated odds of winning prizes shall be printed on each ticket; and
(2)	A detailed tabulation of the estimated number of prizes of each particular prize denomination that are expected to be awarded in each lottery game, or the estimated odds of winning these prizes, shall be available at the offices of the lottery at the time that lottery game is offered for sale to the public; and
(3)	All printed or point of sale advertising promoting the sale of lottery tickets for a particular game shall include the actual or estimated odds of winning that game.
"§ 143C-143.  Method of determining winners.
(a)	Upon the recommendation of the Director, the Commission shall adopt rules as prescribed by Chapter 150B of the General Statutes, which specify the method for determining winners in each lottery game, provided that if a lottery game uses a drawing of winning numbers, a drawing among entries, or a drawing among finalists:
(1)	The drawings shall always be open to the public;
(2)	The drawings shall be witnessed by an independent certified public accountant;
(3)	Any equipment used in the drawings shall be inspected by the independent certified public accountant and an employee of the lottery both before and after the drawings; and
(4)	The drawings and inspections shall be recorded on both video and audio tape.
	(b)	It is the intent of this Chapter that the Commission may authorize the use of any of a variety of existing or future methods or technologies in determining winners.
"§ 143C-144.  Sale price of tickets and shares.
Upon the recommendation of the Director, the Commission shall adopt rules as prescribed by Chapter 150B of the General Statutes, specifying the retail sales price for each ticket or share for each lottery game, provided:
(1)	No ticket or share shall be sold for more than the retail sales price established by the Commission; and
(2)	The minimum retail price of each ticket, share, or transaction in any lottery game shall be fifty cents (50¢), except to the extent of any discounts or promotions authorized by the Commission for a particular lottery game.
"§ 143C-145.  Validation and payment of prizes.
Upon the recommendation of the Director, the Commission shall adopt rules as prescribed by Chapter 150B of the General Statutes, to establish a system of verifying the validity of tickets or shares claimed to win prizes and to effect payment of those prizes, provided:
(1)	For the convenience of the public, lottery retailers may be authorized by the Commission to pay winners of up to an amount appropriate to the lottery game involved, after performing validation procedures on their premises, and with the approval of the Director;
(2)	No prize shall be paid to any person under the age of 18 years;
(3) 	No prize may be paid arising from claimed tickets or shares that are stolen, counterfeit, altered, fraudulent, unissued, produced or issued in error, unreadable, not received or recorded by the lottery by the applicable deadlines, lacking in captions that conform and agree with the lottery play symbols as appropriate to the lottery game involved, or not in compliance with any additional specific rules and regulations and public or confidential validation and security tests of the lottery appropriate to the particular game involved;
	(4)	No particular prize in any lottery game may be paid more than once, and in the event of a binding determination that more than one claimant is entitled to a particular prize, the sole remedy for these claimants is the award to each of them of a proportionate share in the prize;
	(5)	The Commission may specify that winners of twenty-five dollars ($25.00) or less may claim the prizes from either the same lottery game retailer who sold the winning ticket or share or from the lottery itself or from any other lottery retailer;
	(6)	Holders of tickets or shares shall have the right to claim prizes for 120 days after the drawing or the end of the lottery game or play in which the prize was won.  The Commission may define shorter time periods for eligibility for entry into drawings involving entries or finalists.  If a valid claim is not made for a prize payable directly by the Commission within the applicable period, the unclaimed prize money will revert to the North Carolina State Lottery Fund;
	(7)	After the expiration of the claim period for prizes for each lottery game, the Commission shall make available a detailed tabulation of the total number of prizes of each prize denomination that were actually claimed and paid directly by the Commission;
(8)	The right of any person to a prize shall not be assignable, except that payment of any prize may be paid to the estate of a deceased prizewinner or to a person designated pursuant to an appropriate judicial order.  The Director, Commission, State lottery, and the State shall be discharged of all liability upon payment of a prize; and
(9)	No ticket or share in a lottery game shall be purchased by, and no prize shall be paid to a member of the Commission, the Director, an assistant lottery director, or employee of the lottery or to any spouse, parent, or child living in the same household as a person disqualified by this provision.
"§ 143C-146.  Lottery game play rules and winner validation procedures.
All prizes contemplated in each lottery game by its prize structure for a given level of sales shall be paid to the players of the lottery game.  Conversely, in order to preserve the fiscal integrity of the lottery and to protect public funds, no prizes shall be paid which are invalid and not contemplated by the prize structure of the lottery game involved.  By purchasing a ticket or share in a lottery game, a player agrees to abide by, and be bound by, the lottery's game play rules developed by the Director, and approved by the Commission, to apply to any particular lottery game involved.  An abbreviated form of the game play rules may appear on tickets in lottery games using tickets.  In particular a player acknowledges that the determination of whether the player is a winner is subject to the game play rules and the winner validation procedures and confidential validation tests established by the lottery for the particular lottery game involved.  The game play rules shall not be considered to be rules or regulations for the purpose of Chapter 150B of the General Statutes.
"§ 143C-147.  Distribution of tickets and shares.
(a)	Upon the recommendation of the Director, the Commission shall adopt rules as prescribed by Chapter 150B of the General Statutes, specifying the manner of distribution, dissemination, or sale of lottery tickets or shares to lottery game retailers or directly to the public, and the incentives, if any, for any lottery employees or lottery retailers engaged in these activities.  Notwithstanding any other provisions of this Chapter, no lottery ticket or shares may be sold or resold by any party except at the sales price or value established by the Commission, except as specifically authorized by the Commission. In lottery games using electronic computer terminals or devices, the lottery may employ or engage persons with experience in the repair, maintenance, or operation of comparable equipment.
(b)	The Commission may enter into agreements with other states for the operation and promotion of multistate lotteries consistent with the purposes set forth in G.S. 143C-102.
"§§ 143C-148 and 143C-149:  Reserved for future codification purposes.
"ARTICLE 5.
"Lottery Game Retailers.
"§ 143C-150.  Contracting with lottery game retailers.
Upon the recommendation of the Director, the Commission shall adopt rules as prescribed by Chapter 150B of the General Statutes, specifying the terms and conditions for contracting with lottery game retailers to provide adequate and convenient availability of tickets or shares to prospective buyers of each lottery game.  The Commission may permit the North Carolina State Lottery to sell tickets and shares directly to the public or to make these sales by any other method authorized by the Commission.
"§ 143C-151.  Selection of lottery game retailers.
(a)	The Director shall select as lottery game retailers those persons deemed best able to serve the public convenience and to promote the sale of tickets or shares.  No natural person under 21 years of age shall be a lottery game retailer.  This minimum age does not prohibit employees of a retailer who are under 21 years of age from selling lottery tickets or shares during their employment.  In the selection of a lottery game retailer the Director shall consider:
(1)	Financial responsibility;
(2)	Accessibility of the place of business or activity to the public;
(3)	Security of the premises;
(4)	Integrity;
(5)	Reputation;
(6)	The sufficiency of existing lottery game retailers for any particular lottery game to serve the public convenience; and
(7)	The projected volume of sales for the lottery game involved.
No contract with any lottery game retailer shall be entered into if the retailer has been convicted of a felony or a gambling-related offense in any state or federal court of the United States of America within 10 years of entering into the contract.
	(b)	No person shall be a lottery game retailer who is engaged exclusively in the business of selling lottery tickets or shares.  A person lawfully engaged in nongovernmental business on State property or an owner or lessee of premises on which alcoholic beverages are sold may be selected as a lottery game retailer.  A civic or fraternal organization may be selected as a lottery game retailer.  Political subdivisions or their agencies or departments may be selected as lottery game retailers for sales from their premises.  The Director may contract with lottery retailers on a permanent, seasonal, or temporary basis.  The lottery may require payment by each lottery game retailer to the lottery of an initial fee or an annual fee, or both, as established by the Commission, to maintain the contract to be a lottery game retailer.
"§ 143C-152.  Nonassignability.
The contract to act as a lottery game retailer is not assignable or transferable.
"§ 143C-153.  Termination of a contract with a lottery game retailer.
The Director may terminate a contract with a lottery game retailer under the provisions for termination included in the contract.  These provisions for termination shall include the knowing sale of tickets or shares to any person under the age of 18 years.
"§ 143C-154.  Compensation for lottery game retailers.
Upon the recommendation of the Director, the Commission shall adopt rules as prescribed by Chapter 150B of the General Statutes, to determine the compensation to be paid to lottery game retailers for their sales of lottery tickets or shares.  Until the Commission determines otherwise, the compensation paid to lottery game retailers shall be five percent (5%) of the retail price of the tickets or shares plus an incentive bonus of one percent (1%) based on attainment of sales volume or other objectives specified by the Director for each lottery game.  In cases of a lottery game retailer whose rental payments for premises are contractually computed on the basis of a percentage of retail sales, and where the computation of retail sales is not explicitly defined to include sales of tickets or shares in a State lottery, the compensation received by the lottery game retailer from the lottery shall be deemed to be the amount of the retail sale for the purposes of this contractual computation.
"§ 143C-155.  Sales to persons under the age of 18.
No tickets or shares in lottery games shall be sold to persons under the age of 18 years.  Selling tickets or shares to a person under the age of 18 years shall be a misdemeanor.  In the case of lottery tickets or shares sold by lottery game retailers or their employees, those persons shall establish safeguards to help assure that sales are not made to natural persons under the age of 18 years.  In the case of sales of tickets or shares sold by vending machines, electronic computer terminals, or other devices, the Commission shall establish safeguards to help assure that the vending machines or devices are not operated by natural persons under the age of 18 years.  Nothing in this Article shall be construed to prevent any person 18 years or older from giving lottery tickets or shares to another as a gift.
"§ 143C-156.  Payment of prize won by person under 18.
If the person entitled to a prize or any winning ticket is under the age of 18 years, and the prize is less than five thousand dollars ($5,000), the Director may direct payment of the prize by delivery of a check or draft payable to the order of the person under 18 years of age to an adult member of that person's family or to that person's legal guardian.  If the person entitled to a prize or any winning ticket is under the age of 18 years, and the prize is five thousand dollars ($5,000) or more, the Director may direct payment to that person by depositing the amount of the prize in any insured depository institution to the credit of an adult member of that person's family, or the legal guardian of the person, as custodian for that person.
"§ 143C-157.  Display of certificate of authority.
No lottery tickets or shares shall be sold by a lottery game retailer unless the retailer conspicuously displays a certificate of authority, signed by the Director, to sell lottery tickets or shares.
"§ 143C-158.  Bonding.
The Director may require an appropriate bond from any lottery game retailer or may purchase blanket bonds covering the activities of selected lottery game retailers.
"§ 143C-159.  Lottery game retailer accounting; payments.
(a)	The Director shall establish procedures which shall be used by lottery game retailers to account for all tickets or shares that are sold by them to the public and to account for all funds received by them from the public for the tickets or shares.
	(b)	No payment by lottery game retailers to the lottery for tickets or shares shall be in cash.  All payments shall be in the form of checks, bank drafts, electronic fund transfers, or other recorded financial instruments as approved by the Director.
"ARTICLE 6.
"Lottery Vendors and Lottery Contractors.
"§ 143C-160.  Procurements.
Notwithstanding other provisions of law, the Director may purchase or lease goods or services or combinations of goods and services needed to effectuate the purposes of this Chapter.  The lottery may not contract with any private party or non-governmental entity for the operation and administration of the State lottery established by this Chapter; however, the foregoing shall not preclude procurements that integrate functions such as lottery game design, supply of goods and services, and advertising.  In all procurements, the Director and Commission shall act to promote the objective of raising net revenues for the benefit of the public purpose described in this Chapter.
"§ 143C-161.  Contracts.
The Director may directly solicit proposals or enter into contracts for the purchase or lease of goods or services to effectuate the purposes of this Chapter.  In awarding contracts in response to solicitations for proposals, the Director shall award the contracts to the responsible vendor submitting the best proposal which he determines maximizes the benefits to the State.  In all procurement decisions, the Director, or the Commission, if the Commission chooses to make the decision, shall take into account the particularly sensitive nature of the lottery and shall consider the competence, quality of product, experience, and timely performance of the vendors in order to promote and ensure security, honesty, fairness, and integrity in the operation and administration of the lottery and objective of raising net revenues for the benefit of the public purpose described in this Chapter.  The Director may engage an independent firm experienced in evaluating government procurement proposals to aid in the evaluation of proposals to the lottery.  Before a contract for a major procurement is awarded, the assistant director for security shall conduct a thorough background investigation of:
	(1)	The vendor to whom the contract is to be awarded;
	(2)	Any parent or subsidiary corporation of the vendor to whom the contract is to be awarded;
	(3)	All shareholders with a five percent (5%) or more interest in the vendor or parent or subsidiary corporation of the vendor to whom the contract is to be awarded; and
	(4)	All officers and directors of the vendor or parent or subsidiary corporation of the vendor to whom the contract is to be awarded.
All contract awards made by the Director are made subject to the approval of the Commission.  No contract may be awarded to any person convicted of a felony or any gambling offense in any state or federal court of the United States of America within 10 years of entering into the contract.  The Commission may by rule designate classes of contracts other than major procurements that do not require approval of the Commission.
"§ 143C-162.  Lottery vendor disclosures for major procurements.
Upon the recommendation of the Director, the Commission shall adopt rules as prescribed by Chapter 150B of the General Statutes, to provide for disclosures by vendors submitting bids, proposals, or offers as part of a major procurement to ensure that the vendors provide all the information necessary to allow for a full and complete evaluation by the lottery of the competence, integrity, background, and character of the lottery vendors.  The rules shall require that all lottery vendors submit to the assistant director for security any appropriate investigation authorizations needed to facilitate these investigations.
"§ 143C-163.  Compliance with applicable laws.
Each lottery contractor shall perform its contract consistent with the laws of this State, federal law, and laws of the state or states in which the lottery contractor is performing or producing, in whole or in part, any of the goods or services contracted for.
"§ 143C-164.  Performance bond.
Each lottery contractor in a major procurement shall, at the time of executing the contract with the Director, post an appropriate bond or letter of credit with the Director, in an amount equal to the full amount estimated to be paid annually to the lottery contractor under the contract.  The Commission may issue a rule allowing the Director to decrease the bond or letter of credit requirement for a major procurement if the Director determines that the decrease will result in a cost savings to the lottery while still providing adequate protection against nonperformance.  In lieu of a bond or letter of credit, a contractor may, to assure the faithful performance of its obligations, deposit and maintain with the Director securities that are interest bearing or accruing that, with the exception of those specified in subdivision (1)	or (2), are rated in one of the four highest classifications by an established nationally recognized investment rating service.  Securities eligible under this section are limited to the following:
(1)	Certificates of deposit issued by solvent banks and savings associations organized and existing under North Carolina law or under the laws of the United States and having their principle place of business in North Carolina.
(2)	United States bonds and bills for which the full faith and credit of the government of the United States is pledged for the payment of principal and interest.
(3)	General obligation bonds and notes of any political subdivision of the State.
(4)	Corporate bonds of a corporation that is not an affiliate or subsidiary of the depositor.
Securities shall be held in trust and must have at all times a market value at least equal to the full amount estimated to be paid annually to the contractor under contract.
"§§ 143C-165 to 143C-169:  Reserved for future codification purposes.
"ARTICLE 7.
"North Carolina State Lottery Fund.
"§ 143C-170.  North Carolina State Lottery Fund.
A special account to be known as the ‘North Carolina State Lottery Fund' is created within the State treasury.  The North Carolina State Lottery Fund is continuously appropriated to the Commission for the purposes of operating the Commission and the State lottery.
"§ 143C-171.  Types of income to the North Carolina State Lottery Fund.
The North Carolina State Lottery Fund shall receive the following monies:
	(1)	All proceeds from the sale of lottery tickets or shares;
	(2)	The investments for initial start-up costs; and
	(3)	All other monies credited to the lottery from any lottery-related source.
"§ 143C-172.  Types of disbursements from the North Carolina State Lottery Fund.
Disbursements shall be made from the North Carolina State Lottery Fund for any of the following purposes:
	(1)	The payment of prizes to the holders of valid winning lottery tickets or shares;
	(2)	Expenses of the lottery, including initial start-up costs; and
	(3)	Transfer of funds from the North Carolina State Lottery Fund to the Savings Reserve Account and the Capital-Maintenance Account established under G. S. 143C-175.
"§ 143C-173.  Prize payments of the lottery.
As nearly as practical, at least fifty percent (50%) of the total projected revenue as computed on a year-round basis for each lottery game, accruing from the sales of all lottery tickets or shares from that lottery game shall be apportioned for payment of prizes for that lottery game.  The North Carolina State Lottery Commission may allocate a larger percentage of the total projected revenue for a lottery game to prizes if it concludes that the total annual net revenue from the lottery game will be enhanced by that prize percentage.
"§ 143C-174.  Expenses of the lottery.
Expenses of the lottery shall include:
	(1)	The costs incurred in the operation and administration of the lottery, including initial start-up costs;
(2)	The costs resulting from any contracts entered into for the purchase or lease of goods or services required by the lottery;
(3)	The compensation paid to lottery game retailers;
(4)	The cost of supplies, materials, tickets, independent studies, data transmission, advertising, promotion, incentives, public relations, communications, bonding for lottery game retailers, printing, and distribution of tickets and shares;
(5)	The costs of reimbursing other governmental entities for services provided to the lottery; and
(6)	The costs for any other goods and services needed to accomplish the purposes of this Chapter.
As nearly as practical, No more than sixteen percent (16%) of the total annual revenues accruing from the sale of all lottery tickets and shares from all lottery games shall be expended for the payment of expenses of the lottery.
"§ 143C-175.  Transfer of net revenues.
(a)	The funds remaining in the North Carolina State Lottery Fund after receipt of all revenues to the North Carolina State Lottery Fund and after accrual of all obligations of the lottery for prizes and expenses shall be deemed to be the net revenues of the lottery.
(b)	The State Treasurer shall transfer monthly one-half of the net proceeds of the North Carolina State Lottery Fund to the Savings Reserve Account, a special revenue account established within the State treasury.  At the end of each fiscal year, the State Treasurer shall transfer the amount of revenue in the Account that exceeds eight percent (8%) of the General Fund operating budget for the fiscal year ending that June 30, including local government tax reimbursements and local government tax sharing funds, to the General Fund.
(c)	The State Treasurer shall transfer monthly the remaining one-half of the net proceeds of the North Carolina State Lottery Fund to the Capital-Maintenance Account, a special revenue account established within the State treasury.  Eighty percent (80%) of the revenue in the Account shall be used, as determined by the General Assembly, for capital improvements and debt service retirement on General Obligation bonds.  The remaining twenty percent (20%) shall be used to maintain capital improvements.
"§ 143C-176.  Intergovernmental reimbursements for services.
It is the intent of this Chapter that the lottery shall be a self-supporting agency of State government.  The North Carolina State Lottery Commission shall reimburse, at a reasonable rate, all other governmental entities for any and all services necessary to effectuate the purposes of this Chapter provided by those governmental entities to the Commission.
"§ 143C-177.  Audits.
The State Auditor shall conduct annual postaudits of all accounts and transactions of the Commission and any other special postaudits the State Auditor deems to be necessary.  The Auditor or his agents conducting an audit may examine any records of the Commission, its distributing agencies, lottery contractors, and lottery game retailers.
"§§ 143C-178 and 143C-179:  Reserved for future codification purposes.
"ARTICLE 8.
"Miscellaneous.
"§ 143C-180.  Taxes.
No taxes shall be imposed on the sale of lottery tickets or shares of the lottery established by this Chapter.
"§ 143C-181.  Preemption of local laws.
All matters relating to the operation of the lottery established by this Chapter shall be governed solely by the provisions of this Chapter and shall be free from regulation or legislation by local governments, including cities and counties.
"§ 143C-182.  Lawful activity.
Any other State or local law, ordinance, or regulation providing any penalty, disability, restriction, regulation, or prohibition for the manufacture, transportation, storage, distribution, advertising, possession, or sale of any lottery tickets or shares or for the operation of any lottery game does not apply to the operation of the lottery established by this Chapter."
Sec. 202.  G.S. 147-69.2(a) is amended by adding a new subdivision to read:
		" (17.1)  The North Carolina State Lottery Fund."
Sec. 203.  If Sections 201 and 202 of this act are approved by the qualified voters in the referendum called for in Section 204 of this act, then the reasonable costs to the State Board of Elections and to the boards of elections of the various counties for the referendum called for by Section 203 of this act and attributable specifically to the question of establishing a North Carolina State Lottery shall be expenses of the lottery pursuant to G.S. 143C-174 and shall be reimbursed to the State Board of Elections and to boards of elections of the various counties from the Lottery Fund.
If Sections 201 and 202 of this act are not approved by the qualified voters in the referendum called for in Section 204 of this act, then the State Board of Elections and the boards of elections of the various counties may seek reimbursement from the General Assembly for the reasonable costs of the referendum called for by Section 4 of this act and attributable specifically to the question of establishing a North Carolina State Lottery.
Sec. 204.  If approved by the qualified voters of the State of North Carolina, Sections 201 and 202 of this act become effective January 1, 1993.  The question of the approval of Sections 201 and 202 of this act shall be submitted to the qualified voters of the State of North Carolina at an election on November 3, 1992.
The referendum shall be held in accordance with the provisions of Chapter 163 of the General Statutes, and the form of the ballot shall be:
"[]	FOR approval of an act establishing a North Carolina State Lottery.
[]	AGAINST approval of an act establishing a North Carolina State Lottery."
If less than a majority of the votes are cast in favor of the approval of Sections 201 and 202 of this act, they shall have no force or effect.
Sec. 205.  Nothing in this Title shall be construed to obligate the General Assembly to make additional appropriations to implement the provisions of this Title.
Sec. 206.  The North Carolina State Lottery Commission shall determine an estimate of the initial working capital and submit that estimate to the the Office of State Budget and Management for approval.  After approval is granted by the Office of State Budget and Management, and with the written approval of the State Treasurer, the State Controller shall advance the approved funds by internal borrowing from other available State funds.  The terms and conditions of the temporary loan or loans shall be determined by the Office of State Budget and Management.
Sec. 207.  This Title is effective upon ratification.

TITLE III.  JUDICIAL SELECTION

Sec. 301.  Section 6(1) of Article IV of the North Carolina Constitution reads as rewritten:
"(1)	Membership.  The Supreme Court shall consist of a Chief Justice and six Associate Justices, but the General Assembly may increase the number of Associate Justices to not more than eight.  The Governor shall nominate, and with the advice and consent of a majority of those present and voting of the Senate and of the House of Representatives, appoint the Chief Justice and the Associate Justices as provided by law.  The General Assembly may require the Governor to make his nominations from names of persons submitted pursuant to procedures and in a manner prescribed by law.  The General Assembly may by law permit persons nominated to serve pending appointment, and it may permit persons appointed to serve pending the beginning of their initial term.  Justices appointed shall serve an initial term as provided by this Article and shall be eligible for subsequent terms pursuant to procedures and in a manner as shall be established by the General Assembly.  In the event the Chief Justice is unable, on account of absence or temporary incapacity, to perform any of the duties placed upon him, the senior Associate Justice available may discharge these duties."
Sec. 302.  Section 7 of Article IV of the North Carolina Constitution reads as rewritten:
"Sec. 7.  Court of Appeals.
The structure, organization, and composition of the Court of Appeals shall be determined by the General Assembly.  The Governor shall nominate, and with the advice and consent of a majority of those present and voting of the Senate and of the House of Representatives, appoint the Judges of the Court of Appeals as provided by law.  The General Assembly may require the Governor to make his nominations from names of persons submitted pursuant to procedures and in a manner prescribed by law.  The General Assembly may by law permit persons nominated to serve pending appointment, and it may permit persons appointed to serve pending the beginning of their initial term.  Judges appointed shall serve an initial term as provided in this Article and shall be eligible for subsequent terms pursuant to procedures and in a manner as shall be established by the General Assembly.  The Court shall have not less than five members, and may be authorized to sit in divisions, or other than en banc.  Sessions of the Court shall be held at such times and places as the General Assembly may prescribe."
Sec. 303.  Section 9(1) of Article IV of the North Carolina Constitution reads as rewritten:
"(1)	Superior Court Judges and districts.  The General Assembly shall, from time to time, divide the State into a convenient number of Superior Court judicial districts and shall provide for the election of one or more Superior Court Judges for each district.  Judges of the Superior Court shall be elected by the qualified voters and shall hold office for terms of eight years and until their successors are elected and qualified.  Regular Judges of the Superior Court may be elected by the qualified voters of the State or by the voters of their respective districts, as the General Assembly may prescribe.  Each regular Superior Court Judge shall reside in the district for which he is elected.  The General Assembly may provide by general law for the selection or appointment of special or emergency Superior Court Judges not selected for a particular judicial district."
Sec. 304.  Section 16 of Article IV of the North Carolina Constitution reads as rewritten:
"Sec. 16.  Terms of office of Justices of the Supreme Court, and Judges of the Court of Appeals.
The initial term of office for each person holding the office of Chief Justice of the Supreme Court, Associate Justice of the Supreme Court, and Judge of the Court of Appeals shall be four years, and each subsequent term for that person in that office shall be eight years."
Sec. 305.  Section 19 of Article IV of the North Carolina Constitution reads as rewritten:
"Sec. 19. Vacancies.
(1)	Vacancies generally.  Unless otherwise provided in this Article, all vacancies occurring in the offices provided for by this Article shall be filled by appointment of the Governor, and the appointees shall hold their places until the next election for members of the General Assembly that is held more than 60 days after the vacancy occurs, when elections shall be held to fill the offices.  When the unexpired term of any of the offices named in this Article of the Constitution in which a vacancy has occurred, and in which it is herein provided that the governor shall fill the vacancy, expires on the first day of January succeeding the next election for members of the General Assembly, the governor shall appoint to fill that vacancy for the unexpired term of the office.  If any person elected or appointed to any of these offices shall fail to qualify, the office shall be appointed to, held and filled as provided in case of vacancies occurring therein.  All incumbents of these offices shall hold until their successors are qualified.
(2)	Vacancies on appellate courts.  Vacancies in the office of Chief Justice, Associate Justice, or Judge of the Court of Appeals shall be filled according to Sections 6 and 7 of this Article.  The General Assembly may by general law specify provisions contrary to those in Article VI, Section 10 to be applicable to Justices and Judges."
Sec. 306.  Article IV of the North Carolina Constitution is amended by adding a new section at the end to read:
“Sec. 23.  Transition to appointment system.
The Chief Justice, Associate Justices, and Judges of the Court of Appeals holding office on the effective date of amendments to this Article deleting provisions requiring elections to those offices, and inserting in their place provisions requiring appointment to those offices, shall continue in office until the expiration of their terms.  Those Justices and Judges, to remain in office beyond the expiration of their terms, shall be subject to the reconfirmation or retention procedures established by the General Assembly.  The General Assembly may also provide by general law for the extension of terms of those Justices and Judges if necessary to an orderly transition to an appointive system of initial selection."
Sec. 307.  The amendments set out in Sections 301 through 306 of this act shall be submitted to the qualified voters of the State at the general election to be held in November of 1992, which election shall be conducted under the laws then governing elections in the State.  At that election, each qualified voter desiring to vote shall be provided a ballot on which shall be printed the following:
"[]	FOR Constitutional amendments to change from election to appointment of appellate judges by the Governor, subject to the advice and consent of the General Assembly for initial terms of four years, followed by subsequent terms of eight years pursuant to a reconfirmation procedure to be determined by the General Assembly.
[]	AGAINST Constitutional amendments to change from election to appointment of appellate judges by the Governor, subject to the advice and consent of the General Assembly for initial terms of four years, followed by subsequent terms of eight years pursuant to a reconfirmation procedure to be determined by the General Assembly."
Those qualified voters favoring the amendments set out in Sections 301 through 306 of this act shall vote by making an "X”or check mark in the square beside the statement beginning "FOR", and those qualified voters opposed to that amendment shall vote by marking an "X”or check mark in the square beside the statement beginning "AGAINST".
Notwithstanding the foregoing provisions of this section, voting machines may be used in accordance with rules and regulations prescribed by the State Board of Elections.
Sec. 308.  If a majority of votes cast thereon are in favor of the amendments set out in Sections 301 through 306 of this act, the State Board of Elections shall certify the amendments to the Secretary of State, who shall enroll the amendments so certified among the permanent records of his office, and the amendments shall become effective January l5, 1993.
Sec. 309.  Sections 301 through 308 of this act are effective upon ratification.
Sec. 310.  Chapter 7A of the General Statutes is amended by adding a new Article to read:
“ARTICLE 1A.
"Appointment, Confirmation, and Reconfirmation
of Justices and Judges.
"§ 7A-4.1.  Appointment of justices and judges by Governor and confirmation by General Assembly.
(a)	When a new judgeship on the Supreme Court or Court of Appeals is created, the Governor shall within 120 days after the act creating the judgeship becomes law nominate a person from the list of nominees provided pursuant to G.S. 7A-4.2 to serve in the judgeship.  Unless otherwise provided, the nominee shall be subject to confirmation by the Senate and the House of Representatives in the first regular session held in an odd-numbered year convening after the judgeship is created.
(b)	When a vacancy occurs in the office of Chief Justice of the Supreme Court, Associate Justice of the Supreme Court, or Judge of the Court of Appeals, the Governor shall nominate a person to fill the vacancy from the list of nominees provided pursuant to G.S. 7A-4.2.  If the vacancy occurs because the holder of the office indicates that he will not seek reconfirmation at the end of his term, the Governor shall submit his nomination to the General Assembly by March 1 of the year after that intention is made known.  If the vacancy occurs for any other reason, the Governor shall submit his nomination to the General Assembly no later than 120 days after the vacancy is created.
(c)	Nominees nominated pursuant to subsections (a) or (b) of this section are subject to confirmation as provided in this subsection. If the nomination is for a vacancy to be created at the end of a term and the nomination is the first such nomination for that office, the nomination shall be considered during the regular session held in the odd-numbered year in which the term of office of the judge vacating the office expires. All other nominations may be considered for confirmation at any regular or extra session of the General Assembly, but the nomination shall be considered no later than the first regular session conducted in an odd-numbered year after the nomination is submitted, unless it is submitted after April 1 during such a session. Nominations submitted during such a session and after April 1 may be considered by the General Assembly for confirmation in that session or any regular or extra session conducted thereafter, but the nomination shall be considered for confirmation no later than the first regular session in an odd-numbered year convening after the nomination is submitted. To be confirmed, a nominee shall receive a majority vote of those present and voting in the Senate and House of Representatives during the session in which the nomination is considered. Failure to receive a majority vote of those present and voting in both houses in a session in which a nomination is considered constitutes a failure to confirm and creates a vacancy in the office to be filled as provided by this section. A nominee confirmed by both the Senate and the House of Representatives shall be appointed by the Governor for a four-year term to begin on the next September 1 in an odd-numbered year. A person confirmed may begin service immediately upon being appointed, even though his term of office has not begun. For purposes of this subsection, a nomination is ‘considered' if either house of the General Assembly votes on the nomination. For purposes of this subsection, a session ends when it adjourns or recesses for more than 30 days, or adjourns sine die, whichever comes first.
(d)	In addition to any other lawful requirement for service as a justice or judge, a nominee, to be eligible to be nominated for Chief Justice, Associate Justice of the Supreme Court, or Judge of the Court of Appeals, shall be a registered voter in this State.
(e)	The Governor, in making nominations, shall make reasonable efforts to ensure that his nominees are broadly representative of the people of this State.
"§ 7A-4.2.  Nomination procedure.
(a)	The Governor, in making a nomination to the office of Chief Justice, shall make the nomination from among a list of nominees as follows:
(1)	All active trial judges in the General Court of Justice;
(2)	All active associate justices and Court of Appeals judges in the General Court of Justice;
(3)	Not more than three nominees from each district bar, as defined by G.S. 84-19, who are residents of the district and who are members of that district bar; and
(4)	Former justices and judges in the General Court of Justice, except those who (i) have been impeached, (ii) have been removed from office, or (iii) have failed to be confirmed or reconfirmed pursuant to Article 1A of Chapter 7A of the General Statutes.
(b)	The Governor, in making a nomination to the office of Associate Justice, shall make the nomination from among a list of nominees as follows:
(1)	All active trial judges in the General Court of Justice;
(2)	All active Court of Appeals judges in the General Court of Justice;
(3)	Not more than three nominees from each district bar, as defined by G.S. 84-19, who are residents of the district and who are members of that district bar; and
(4)	Former justices and judges in the General Court of Justice, except those who (i) have been impeached, (ii) have been removed from office, or (iii) have failed to be confirmed or reconfirmed pursuant to Article 1A of Chapter 7A of the General Statutes.
(c)	The Governor, in making a nomination to the office of Judge of the Court of Appeals, shall make the nomination from among a list of nominees as follows:
(1)	All active trial judges in the General Court of Justice;
(2)	Not more than three nominees from each district bar, as defined by G.S. 84-19, who are residents of the district and who are members of that district bar; and
(3)	Former justices and judges in the General Court of Justice, except those who (i) have been impeached, (ii) have been removed from office, or (iii) have failed to be confirmed or reconfirmed pursuant to Article 1A of Chapter 7A of the General Statutes.
(d)	The nominees of the district bars shall be submitted within 30 days of the date the bar is notified of the occurrence of the vacancy.  If any district bar fails to submit a nomination within the 30-day period, the Governor shall make the nomination and appointment from among the nominations received before the expiration of the 30-day period.  The Governor shall notify each district bar in writing of the occurrence of a vacancy in the office of Chief Justice, Associate Justice, or Court of Appeals Judge.  If the Governor is informed of the creation of a vacancy to become effective on a future date certain, he may notify the district bars before the effective date of the vacancy, and the 30-day period shall begin to run from the date of the notice.
"§ 7A-4.3.  Screening of potential nominees by Judicial Selection and Retention Commission.
(a)	Before submitting a nomination to the General Assembly to fill a new judgeship or a vacancy in an existing judgeship, the Governor shall first submit to the Judicial Selection and Retention Commission the names of at least three but not more than five persons he is considering for the nomination.  The Commission shall investigate the candidates' fitness for nomination and shall report its findings to the Governor before the Governor may submit a nomination.  If after receiving the findings of the Commission, the Governor decides not to nominate any of the candidates submitted, he must submit the name of any additional person or persons he proposes to nominate to the Commission and receive the Commission's evaluation of those persons, including the person to be nominated, before submitting a nomination to the General Assembly.  The Commission shall personally meet with each candidate and provide the candidate with an opportunity to address any concerns that the Commission's investigation has revealed. The Commission shall also determine that each candidate:
(1)	Is in good standing with the State Bar and in good standing with any other state bars of which the nominee is a member;
(2)	Has a reputation for and possesses integrity and good character;
(3)	Is of sound health;
(4)	Has demonstrated and possesses outstanding legal ability and commitment to equal justice under the law; and
(5)	Is of such demeanor, character, and personality that would indicate judicial temperament.
The Commission shall indicate in its report that it finds the candidate ‘Not Qualified,' ‘Qualified,' or ‘Well Qualified' to assume the judgeship for which he is a candidate.  The finding of the Commission shall be by majority vote of those present and voting, and the number of commissioners voting in favor of and against the ultimate finding shall be included when the finding is submitted to the Governor.  The Governor shall include the Commission's finding when submitting any nomination to the General Assembly.
(b)	As used in subsection (a) of this section:
(1)	‘Well Qualified' means the Commission believes the person is one of the best persons available to serve in the judgeship from the standpoint of integrity, competency, and temperament.
(2)	‘Qualified' means that the Commission believes that the person would perform satisfactorily in the judgeship from the standpoint of integrity, competency, and temperament.
(3)	‘Not Qualified' means that the Commission believes that the person would not perform satisfactorily in the judgeship from the standpoint of integrity, competency, or temperament.
(c)	The Commission shall report its finding to the Governor within 30 days of the receipt of the names from the Governor.  If the Commission fails to report to the Governor within 30 days, the Governor may submit a nomination without the evaluation, and no evaluation of the Commission shall be disseminated by the Commission with respect to the person nominated.
(d)	Information received in the course of the investigation is confidential and shall not be disclosed unless specifically required by law or the candidate consents in writing to the disclosure.  Except for the report of the Commission's ultimate finding with respect to a person nominated and the number of commissioners voting for and against the finding, documents prepared or received by the Commission in the course of its investigation are confidential and not open to public inspection without the consent of the candidate, notwithstanding the provisions of Chapter 132 of the General Statutes.
"§ 7A-4.4.  Reconfirmation procedure.
(a)	Any Chief Justice, Associate Justice, or Judge of the Court of Appeals, to be eligible to be reconfirmed, shall by November 1 in the year immediately preceding the year in which  his term expires, file a written declaration of his intent to seek reconfirmation.  The declaration shall be filed with the Governor.  The Governor shall promptly notify the General Assembly and the Judicial Selection and Retention Commission of his receipt of the declaration.  Failure to file the declaration in a timely manner results in the creation of a vacancy in the office at the expiration of the term.  A justice or judge may indicate in writing to the Governor that he does not intend to seek reconfirmation, and the filing of that intention creates a vacancy in the office at the expiration of the term, unless the justice or judge leaves office at an earlier date.
(b)	The Judicial Selection and Retention Commission, upon receipt of a justice's or judge's written declaration of his intent to seek reconfirmation, shall investigate the judge's performance as a justice or judge to determine if it should recommend that he be reconfirmed.  The Commission shall conduct a public hearing to allow comment from interested persons on the justice's or judge's fitness to continue in office. Information received in the course of the investigation is confidential and shall not be disclosed unless specifically required by law or unless the justice or judge consents to the disclosure. Documents prepared or received by the Commission in the course of its investigation are confidential and not subject to public inspection without the consent of the justice or judge, notwithstanding the provisions of Chapter 132 of the General Statutes.  The investigation shall include an evaluation of the justice's or judge's ethical conduct, his knowledge of and application of the law, his management of the courts over which he has presided, his work habits, his health, his judicial demeanor, and any other matter that the Commission determines to be relevant to its inquiry.  The justice or judge shall be given an opportunity to present to the Commission any information he determines to be appropriate.  The Commission's recommendation shall be by majority vote of those present and voting.
(c)	No later than 30 days after the convening of the General Assembly in the year following the filing of a justice's or judge's intent to seek reconfirmation, the Commission shall report to the General Assembly as to whether it recommends that the justice or judge be reconfirmed.  A vote of sixty percent (60%) of those present and voting of both the Senate and the House of Representatives shall be necessary to reject the recommendation of the Commission.  If either house fails to vote on the report of the Commission during the session in which it is submitted, the recommendation of the Commission shall be deemed to have been approved by the General Assembly.  For the purpose of this subsection, a session ends when it adjourns or recesses for more than 30 days, or adjourns sine die, whichever comes first.
(d)	A justice or judge reconfirmed by the General Assembly serves an eight-year term, to begin at the expiration of the term he is serving at the time of reconfirmation.  If the General Assembly does not reconfirm a justice or judge, either by a negative vote or by failing to vote on a negative recommendation of the Commission, a vacancy in that office is created at the expiration of the term.  The provisions of Article VI, Section 10 of the North Carolina Constitution are not applicable to justices or judges who are not reconfirmed by the General Assembly.
"§ 7A-4.5.  Judicial Selection and Retention Commission.
(a)	The Judicial Selection and Retention Commission consists of:
(1)	Four members appointed by the Governor, none of whom may be licensed attorneys, with one member from each judicial division as those divisions were constituted on January 1, 1991;
(2)	Four members appointed by the President of the State Bar from its membership with one member from each judicial division as those divisions were constituted on January 1, 1991;
(3)	Two members, one of whom shall not be a licensed attorney, appointed by the General Assembly on recommendation of the Speaker of the House of Representatives, as provided by G.S. 120-121;
(4)	Two members, one of whom shall not be a licensed attorney, appointed by the General Assembly on recommendation of the President Pro Tempore of the Senate, as provided by G.S. 120-121;
(5)	One member appointed by the President of the North Carolina Bar Association from its membership;
(6)	One member appointed by the President of the North Carolina Association of Women Attorneys from its membership;
(7)	One member appointed by the President of the North Carolina Academy of Trial Lawyers from its membership;
(8)	One member appointed by the President of the North Carolina Association of Black Lawyers from its membership;
(9)	One member appointed by the President of the North Carolina Association of Defense Attorneys from its membership;
(10)	One member appointed by the President of the Conference of District Attorneys from its membership; and
(11)	One member appointed by the President of the North Carolina Association of Public Defenders from its membership.
The Governor and the President of the State Bar shall consider the racial and gender composition of the State's population in making their appointments. No member of the Commission shall be an active judge or justice of the General Court of Justice or an active member of the General Assembly.
(b)	The Director of the Administrative Office of the Courts shall convene the initial meeting of the Commission as soon as feasible after the initial appointments are made.  At that meeting the Commission shall select a chairman from among its members.
(c)	All the members appointed by the Governor and by the President of the State Bar shall serve four-year terms of office, except that two of the initial appointees of the Governor and two of the initial appointees of the State Bar President shall serve terms expiring June 30, 1995, and the remaining two appointees of the Governor and the State Bar President shall serve initial terms expiring June 30, 1997.  The members appointed by the Presidents of the Bar Association, the Conference of District Attorneys, the Association of Women Attorneys, and the Academy of Trial Lawyers shall serve four-year terms, except that the term of office for the initial appointees from those organizations shall expire June 30, 1995.  The members appointed by the Presidents of the Association of Black Lawyers, the Association of Public Defenders, and the Association of Defense Attorneys shall serve four-year terms, except that the term of office for these initial appointees shall expire June 30, 1997.  The appointees of the General Assembly shall serve an initial term expiring June 30, 1995, and thereafter appointees shall serve a two-year term.  Members who have served a full term may be reappointed to one additional full term.  The members shall be appointed within 30 days of the date this act becomes effective.
(d)	The Commission shall be allowed to inspect the files of the Judicial Standards Commission by request of the chairman of the Commission. Notwithstanding the provisions of G.S. 7A-377, the files of the Judicial Standards Commission shall be made available to the Commission. Meetings of the Commission shall not be subject to the provisions of Article 33C of Chapter 143 of the General Statutes.  Testimony and other evidence presented to the Commission is privileged in any action for defamation.
(e)	The Commission may employ an executive secretary to assist it in performing its duties.
"§ 7A-4.6.  Governor to issue commissions to justices and judges.
Every person duly appointed by the Governor as Chief Justice, Associate Justice, or Judge of the Court of Appeals, and every justice or judge duly reconfirmed by the General Assembly shall procure from the Governor a commission attesting that fact, which the Governor shall issue upon receipt of a certification by the Principal Clerks of the Senate and House of Representatives that the person has been confirmed or reconfirmed by the house in which the Clerk serves.  The Principal Clerk of the Senate and the Principal Clerk of the House of Representatives shall promptly certify the results to the Governor of any judicial confirmation and reconfirmation votes taken in their respective houses.  The Secretary of State shall inform the Governor whenever the General Assembly adjourns or recesses for more than 30 days or adjourns sine die.
"§ 7A-4.7.  Transitional provisions for judges in office on effective date of Article.
(a)	Any Chief Justice, Associate Justice, or Judge of the Court of Appeals holding a judgeship on January 15, 1993, that on January 14, 1993, is required by law to be filled by election shall be subject to the reconfirmation procedures in G.S. 7A-4.4 and to the provisions of subsections (b) and (c) of this section to retain his office.
(b)	A justice or judge covered by the provisions of subsection (a) of this section who, at the end of his term of office has at least four years of service in the office he is holding on January 15, 1993, shall be subject to the reconfirmation process during the first regular session convening in an odd-numbered year after the term expires.  Terms of such justices and judges are extended until August 31 of the year following the year in which the term would have normally expired.
(c)	A justice or judge covered by the provisions of subsection (a) of this section who, at the end of his term of office has less than four years in the office he is holding on January 15, 1993, shall be subject to the reconfirmation process in the first regular session convening in an odd-numbered year after he would have four years in service in that office, if continued in office past the expiration of his term.  Terms of office of such justices and judges shall be extended until August 31 of the year in which a reconfirmation decision is made by the General Assembly."
Sec. 311. G.S. 7A-10(a) reads as rewritten:
"(a)	The Supreme Court shall consist of a Chief Justice and six associate justices, selected as provided by Article 1A of this Chapter. Before entering upon the duties of his office, each justice shall take an oath of office. Four justices shall constitute a quorum for the transaction of the business of the court. Sessions of the court shall be held in the city of Raleigh, and scheduled by rule of court so as to discharge expeditiously the court's business."
Sec. 312.  G.S. 7A-16 reads as rewritten:
"§ 7A-16. Creation and organization.
The Court of Appeals shall consist of 12 judges, selected as provided in Article 1A of this Chapter.  The Chief Justice of the Supreme Court shall designate one of the judges as Chief Judge to serve in such capacity at the pleasure of the Chief Justice.  Before entering upon the duties of his office, a judge of the Court of Appeals shall take the oath of office prescribed for a judge of the General Court of Justice.
The Court of Appeals shall sit in panels of three judges each. The Chief Judge insofar as practicable shall assign the members to panels in such fashion that each member sits a substantially equal number of times with each other member. He shall preside over the panel of which he is a member, and shall designate the presiding judge of the other panel or panels.
Three judges shall constitute a quorum for the transaction of the business of the court, except as may be provided in G.S. 7A-32.
In the event the Chief Judge is unable, on account of absence or temporary incapacity, to perform the duties placed upon him as Chief Judge, the Chief Justice shall appoint an acting Chief Judge from the other judges of the Court, to temporarily discharge the duties of Chief Judge."
Sec. 313. G.S. 120-123 is amended by adding a new subdivision to read:
"(3b)	The Judicial Selection and Retention Commission as established by G.S. 7A-4.5."
Sec. 314.  G.S. 163-106 reads as rewritten:
"§ 163-106. Notices of candidacy; pledge; with whom filed; date for filing; withdrawal.
(a)	Notice and Pledge. – No one shall be voted for in a primary election unless he shall have filed a notice of candidacy with the appropriate board of elections, State or county, as required by this section. To this end every candidate for selection as the nominee of a political party shall file with and place in the possession of the board of elections specified in subsection (c) of this section, a notice and pledge in the following form:
‘Date
I hereby file notice as a candidate for nomination as ............ in the .......... party primary election to be held on ........, 19..... I affiliate with the .......... party, (and I certify that I am now registered on the registration records of the precinct in which I reside as an affiliate of the .......... party.)
I pledge that if I am defeated in the primary, I will not run for any office as a write-in candidate in the next general election.
Signed 
Name of candidate
Witness:
......................................
......................................
(Title of witness)'
Each candidate shall sign his notice of candidacy in the presence of the chairman or secretary of the board of elections, State or county, with which he files. In the alternative, a candidate may have his signature on the notice of candidacy acknowledged and certified to by an officer authorized to take acknowledgments and administer oaths, in which case the candidate may mail his notice of candidacy to the appropriate board of elections.
In signing his notice of candidacy the candidate shall use only his legal name and, in his discretion, any nickname by which he is commonly known. A candidate may also, in lieu of his legal first name and legal middle initial or middle name (if any) sign his nickname, provided that he appends to the notice of candidacy an affidavit that he has been commonly known by that nickname for at least five years prior to the date of making the affidavit. The candidate shall also include with the affidavit the way his name (as permitted by law) should be listed on the ballot if another candidate with the same last name files a notice of candidacy for that office.
A notice of candidacy signed by an agent or any person other than the candidate himself shall be invalid.
Prior to the date on which candidates may commence filing, the State Board of Elections shall print and furnish, at State expense, to each county board of elections a sufficient number of the notice of candidacy forms prescribed by this subsection for use by candidates required to file with county boards of elections.
(b)	Eligibility to File. – No person shall be permitted to file as a candidate in a primary if, at the time he offers to file notice of candidacy, he is registered on the appropriate registration book or record as an affiliate of a political party other than that in whose primary he is attempting to file. No person who has changed his political party affiliation or who has changed from unaffiliated status to party affiliation as permitted in G.S. 163-74(b), shall be permitted to file as a candidate in the primary of the party to which  he changed unless he has been affiliated with the political party in which he seeks to be a candidate for at least 90 days prior to the filing date for the office for which he desires to file his notice of candidacy.
A person registered as ‘unaffiliated' shall be ineligible to file as a candidate in a party primary election.
(c)	Time for Filing Notice of Candidacy. – Candidates seeking party primary nominations for the following offices shall file their notice of candidacy with the State Board of Elections no earlier than 12:00 noon on the first Monday in January and no later than 12:00 noon on the first Monday in February preceding the primary:
Governor
Lieutenant Governor
All State executive officers
Judges of the superior courts
Judges of the district courts
United States Senators
Members of the House of Representatives of the United States
District attorneys
Candidates seeking party primary nominations for the following offices shall file their notice of candidacy with the county board of elections no earlier than 12:00 noon on the first Monday in January and no later than 12:00 noon on the first Monday in February preceding the primary:
State Senators
Members of the State House of Representatives
All county offices.
(d)	Notice of Candidacy for Certain Offices to Indicate Vacancy. – In any primary in which there are two vacancies for United States Senator from North Carolina or two or more vacancies for the office of district court judge to be filled by nominations, each candidate shall, at the time of filing notice of candidacy, file with the State Board of Elections a written statement designating the vacancy to which he seeks nomination. Votes cast for a candidate shall be effective only for his nomination to the vacancy for which he has given notice of candidacy as provided in this subsection.
A person seeking party nomination for a specialized district judgeship established under G.S. 7A-147 shall, at the time of filing notice of candidacy, file with the State Board of Elections a written statement designating the specialized judgeship to which he seeks nomination.
(e)	Withdrawal of Notice of Candidacy. – Any person who has filed notice of candidacy for an office shall have the right to withdraw it at any time prior to the date on which the right to file for that office expires under the terms of subsection (c) of this section. If a candidate does not withdraw before the filing deadline, except as provided in G.S. 163-112, his name shall be printed on the primary ballot, any votes for him shall be counted, and he shall not be refunded his filing fee.
(f)	Candidates required to file their notice of candidacy with the State Board of Elections under subsection (c) of this section shall file along with their notice a certificate signed by the chairman of the board of elections or the supervisor of elections of the county in which they are registered to vote, stating that the person is registered to vote in that county, stating the party with which the person is affiliated, and that the person has not changed his affiliation from another party or from unaffiliated within three months prior to the filing deadline under subsection (c) of this section. In issuing such certificate, the chairman or supervisor shall check the registration records of the county to verify such information. During the period commencing 36 hours immediately preceding the filing deadline the State Board of Elections shall accept, on a conditional basis, the notice of candidacy of a candidate who has failed to secure the verification ordered herein subject to receipt of verification no later than three days following the filing deadline. The State Board of Elections shall prescribe the form for such certificate, and distribute it to each county board of elections no later than the last Monday in December of each odd-numbered year.
(g)	When any candidate files a notice of candidacy with a county board of elections under subsection (c) of this section or under G.S. 163-291(2), the chairman or supervisor of elections shall, immediately upon receipt of the notice of candidacy, inspect the registration records of the county, and cancel the notice of candidacy of any person who is not eligible under subsection (c) of this section. The Board shall give notice of cancellation to any candidate whose notice of candidacy has been cancelled under this subsection by mail or by having the notice served on him by the sheriff.
(h)	No person may file a notice of candidacy for more than one office described in subsection (c) of this section for any one election. If a person has filed a notice of candidacy with a board of elections under this section for one office, then a notice of candidacy may not later be filed for any other office under this section when the election is on the same date unless the notice of candidacy for the first office is withdrawn under subsection (e) of this section; provided that this subsection shall not apply unless the deadline for filing notices of candidacy for both offices is the same. Notwithstanding this subsection, a person may file a notice of candidacy for a full term as United States Senator, and also file a notice of candidacy for the remainder of the unexpired term of that same seat in an election held under G.S. 163-12, and may file a notice of candidacy for a full term as a member of the United States House of Representatives, and also file a notice of candidacy for the remainder of the unexpired term in an election held under G.S. 163-13.
(i)	No person may file a notice of candidacy for superior court judge unless that person is at the time of filing the notice of candidacy a resident of the judicial district as it will exist at the time the person would take office if elected.  No person may be nominated as a superior court judge under G.S. 163-114 unless that person is at the time of nomination a resident of the judicial district as it will exist at the time the person would take office if elected.  This subsection implements Article IV Section 9(1) of the North Carolina Constitution which requires regular Superior Court Judges to reside in the district for which elected."
Sec. 315.  G.S. 163-107(a) reads as rewritten:
"(a)	Fee Schedule. – At the time of filing a notice of candidacy, each candidate shall pay to the board of elections with which he files under the provisions of G.S. 163-106 a filing fee for the office he seeks in the amount specified in the following tabulation: 

Office Sought	Amount of Filing Fee

Governor	One percent (1%) of the annual
  salary of the office sought
Lieutenant Governor	One percent (1%) of the annual
  salary of the office sought
All State executive offices	One percent (1%) of the annual
  salary of the office sought
All	One percent (1%) of the annual
Superior and District Court	  salary of the office sought
Judges and District Attorneys of
the General Court of Justice
United States Senator	One percent (1%) of the annual
  salary of the office sought
Members of the United States	One percent (1%) of the annual 
  House of Representatives	  salary of the office sought
State Senator	One percent (1%) of the annual
  salary of the office sought
Member of the State House of	One percent (1%) of the annual
  Representatives	  salary of the office sought
All county offices not 	One percent (1%) of the annual
compensated by fees	  salary of the office sought
County Commissioners, if	Ten dollars ($10.00)
compensated entirely by fees
Members of county board of	Five dollars ($5.00)
education, if compensated
entirely by fees
Sheriff, if compensated entirely	Forty dollars ($40.00), plus
by fees	  one percent (1%) of the
	  income of the office above
  four thousand dollars
	  ($4,000)
Clerk of superior court, if 	Forty dollars ($40.00), plus
compensated entirely by fees	  one percent (1%) of the
  income of the office above
  four thousand dollars
  ($4,000)
Register of deeds, if	Forty dollars ($40.00), plus
compensated entirely by fees	  one percent (1%) of the
  income of the office above
  four thousand dollars
  ($4,000)
Any other county office, if	Twenty dollars ($20.00), plus
compensated entirely by fees	  one percent (1%) of the
  income of the office above
  two thousand dollars ($2,000)
All county offices compensated	One percent (1%) of the first
partly by salary and partly by	  annual salary to be received
fees	  (exclusive of fees)".
Sec. 316.  G.S. 163-107.1(b) reads as rewritten:
"(b)	If the candidate is seeking the office of United States Senator, Governor, Lieutenant Governor, or any State executive officer, the petition must be signed by 10,000 registered voters who are members of the political party in whose primary the candidate desires to run, except that in the case of a political party as defined by G.S. 163-96(a)(2) which will be making nominations by primary election, the petition must be signed by ten percent (10%) of the registered voters of the State who are affiliated with the same political party in whose primary the candidate desires to run, or in the alternative, the petition shall be signed by no less than 10,000 registered voters regardless of the voter's political party affiliation, whichever requirement is greater. The petition must be filed with the State Board of Elections not later than 12:00 noon on Monday preceding the filing deadline before the primary in which he seeks to run. The names on the petition shall be verified by the board of elections of the county where the signer is registered, and the petition must be presented to the county board of elections at least 15 days before the petition is due to be filed with the State Board of Elections. When a proper petition has been filed, the candidate's name shall be printed on the primary ballot."
Sec. 317.  G.S. 163-111(c) reads as rewritten:
"(c)	Procedure for Requesting Second Primary. –
(1)	A candidate who is apparently entitled to demand a second primary, according to the unofficial results, for one of the offices listed below, and desiring to do so, shall file a request for a second primary in writing or by telegram with the Executive Secretary-Director of the State Board of Elections no later than 12:00 noon on the seventh day (including Saturdays and Sundays) following the date on which the primary was conducted, and such request shall be subject to the certification of the official results by the State Board of Elections. If the vote certification by the State Board of Elections determines that a candidate who was not originally thought to be eligible to call for a second primary is in fact eligible to call for a second primary, the Executive Secretary-Director of the State Board of Elections shall immediately notify such candidate and permit him to exercise any options available to him within a 48-hour period following the notification:
Governor,
Lieutenant Governor,
All State executive officers,
Superior and District Court Judges, or District Attorneys of the General Court of Justice,
United States Senators,
Members of the United States House of Representatives,
State Senators in multi-county senatorial districts, and
Members of the State House of Representatives in multi-county representative districts.
(2)	A candidate who is apparently entitled to demand a second primary, according to the unofficial results, for one of the offices listed below and desiring to do so, shall file a request for a second primary in writing or by telegram with the chairman or supervisor of the county board of elections no later than 12:00 noon on the seventh day (including Saturdays and Sundays) following the date on which the primary was conducted, and such request shall be subject to the certification of the official results by the county board of elections:
State Senators in single-county senatorial districts,
Members of the State House of Representatives in single-county representative districts, and
All county officers.
(3)	Immediately upon receipt of a request for a second primary the appropriate board of elections, State or county, shall notify all candidates entitled to participate in the second primary, by telephone followed by written notice, that a second primary has been requested and of the date of the second primary."
Sec. 318.  G.S. 163-140(a) reads as rewritten:
"(a)	Kinds of General Election Ballots; Right to Combine. – For purposes of general elections, there shall be six kinds of official ballots entitled:
(1)	Ballot for presidential electors
(2)	Ballot for United States Senator
(3)	Ballot for member of the United States House of Representatives
(4)	State ballot
(5)	County ballot
(7)	Ballot for constitutional amendments and other propositions submitted to the people.
Use of official ballots shall be limited to the purposes indicated by their titles. The printing on all ballots shall be plain and legible but, unless large type is specified by this section, type larger than 10-point shall not be used in printing ballots. All general election ballots shall be prepared in such a way as to leave sufficient blank space beneath each name printed thereon in which a voter may conveniently write the name of any person for whom he may desire to vote.
Unless prohibited by this section, the board of elections, State or county, charged by law with printing ballots may, in its discretion, combine any two or more official ballots. Whenever two or more ballots are combined, the voting instructions for the State ballot set out in subsection (b)(4) of this section shall be used, except that if the two ballots being combined do not contain a multi-seat race, then the second sentence of instruction b. shall not appear on the ballot.
If the State Board of Elections divides the State ballot into two or more ballots, all candidates for superior court shall appear on the same ballot except that the State Board of Elections may divide the election of superior court judges into two ballots either because of length of the ballot or to provide a separate ballot for multi-seat races but only superior court judges shall be on those ballots."
Sec. 319.  G.S. 163-177 reads as rewritten:
"§ 163-177. Disposition of duplicate abstracts.
Within six hours after the returns of a primary or election have been canvassed and the results judicially determined, the chairman of the county board of elections shall mail, or otherwise deliver, to the State Board of Elections the duplicate-original abstracts prepared in accordance with G.S. 163-176 for all offices and referenda for which the State Board of Elections is required to canvass the votes and declare the results including:
President and Vice-President of the United States
Governor, Lieutenant Governor, and all other State executive officers
United States Senators
Members of the House of Representatives of the United States Congress
Superior and District Court Judges and District Attorneys of the General Court of Justice
State Senators in multi-county senatorial districts
Members of the State House of Representatives in multi-county representative districts
Constitutional amendments and propositions submitted to the voters of the State.
One duplicate abstract prepared in accordance with G.S. 163-176 for all offices and referenda for which the county board of elections is required to canvass the votes and declare the results (and which are listed below) shall be retained by the county board, which shall forthwith publish and declare the results; the second duplicate abstract shall be mailed to the chairman of the State Board of Elections, to the end that there be one set of all primary and election returns available at the seat of government.
All county offices
State Senators in single-county senatorial districts
Members of the State House of Representatives in single-county representative districts
Propositions submitted to the voters of one county.
If the chairman of the county board of elections fails or neglects to transmit duplicate abstracts to the chairman of the State Board of Elections within the time prescribed in this section, he shall be guilty of a misdemeanor.  Provided, that the penalty shall not apply if the chairman was prevented from performing the prescribed duty because of sickness or other unavoidable delay, but the burden of proof shall be on the chairman to show that his failure to perform was due to sickness or unavoidable delay."
Sec. 320.  G.S. 163-192 reads as rewritten:
"§ 163-192. State Board of Elections to prepare abstracts and declare results of primaries and elections.
(a)	After Primary. – At the conclusion of its canvass of the primary election, the State Board of Elections shall prepare separate abstracts of the votes cast:
(1)	For Governor and all State officers, judges of the superior court, and United States Senators.
(2)	For members of the United States House of Representatives for the several congressional districts in the State.
(3)	For district court judges for the several district court districts in the State.
(4)	For district attorney in the several prosecutorial districts in the State.
(5)	For State Senators in the several senatorial districts in the State composed of more than one county.
(6)	For members of the State House of Representatives in the several representative districts in the State composed of more than one county.
Abstracts prepared by the State Board of Elections under this subsection shall state the total number of votes cast for each candidate of each political party for each of the various offices canvassed by the State Board of Elections. They shall also state the name or names of the person or persons whom the State Board of Elections shall ascertain and judicially determine by the count to be nominated for each office.
Abstracts prepared under this subsection shall be signed by the members of the State Board of Elections in their official capacity and shall have the great seal of the State affixed thereto.
(b)	After General Election. – At the conclusion of its canvass of the general election, the State Board of Elections shall prepare abstracts of the votes cast:
(1)	For President and Vice-President of the United States, when an election is held for those offices.
(2)	For Governor and all State officers, judges of the superior court, and United States Senators.
(3)	For members of the United States House of Representatives for the several congressional districts in the State.
(4)	For district court judges for the several district court districts as defined in G.S. 7A-133 in the State.
(5)	For district attorney in the several prosecutorial districts in the State.
(6)	For State Senators in the several senatorial districts in the State composed of more than one county.
(7)	For members of the State House of Representatives in the several representative districts in the State composed of more than one county.
(8)	For and against any constitutional amendments or propositions submitted to the people.
Abstracts prepared by the State Board of Elections under this subsection shall state the names of all persons voted for, the office for which each received votes, and the number of legal ballots cast for each candidate for each office canvassed by the State Board of Elections. They shall also state the name or names of the person or persons whom the State Board of Elections shall ascertain and judicially determine by the count to be elected to each office.
Abstracts prepared under this subsection shall be signed by the members of the State Board of Elections in their official capacity and shall have the great seal of the State affixed thereto.
(c)	Disposition of Abstracts of Returns. – The State Board of Elections shall file with the Secretary of State the original abstracts of returns prepared by it under the provisions of subsections (a) and (b) of this section, and also the duplicate county abstracts transmitted to the State Board of Elections under the provisions of G.S. 163-177."
Sec. 321.  G.S. 163-194 reads as rewritten:
"§ 163-194. Governor to issue commissions to certain elected officials.
Every person duly elected to one of the offices listed below, upon obtaining a certificate of his election from the Secretary of State under the provisions of G.S. 163-193, shall procure from the Governor a commission attesting his election to the specified office, which the Governor shall issue upon production of the Secretary of State's certificate:
Members of the United States House of Representatives,
Superior and District Court Judges and District Attorneys of the General Court of Justice."
Sec. 322.  G.S. 163-1 is amended in the table by deleting the entries for "Justices and Judges of the Appellate Division".
Sec. 323.  G.S. 163-9 reads as rewritten:
"§ 163-9.  Filling vacancies in State and district judicial offices.
Vacancies occurring in the offices of judge of the superior court for causes other than expiration of term shall be filled by appointment of the Governor.  An appointee shall hold his place until the next election for members of the General Assembly that is held more than 60 days after the vacancy occurs, at which time an election shall be held to fill the unexpired term of the office: Provided, that when the unexpired term of the office in which the vacancy has occurred expires on the first day of January succeeding the next election for members of the General Assembly, the Governor shall appoint to fill that vacancy for the unexpired term of the office.
Vacancies in the office of district judge which occur before the expiration of a term shall not be filled by election. Vacancies in the office of district judge shall be filled in accordance with G.S. 7A-142."
Sec. 324.  This act shall become effective only if the amendments to the Constitution of North Carolina proposed by Sections 301 through 306 of this act are approved by the voters, and if so approved, this Title becomes effective January 15, 1993.

TITLE IV. EDUCATION GOVERNANCE

Sec. 401.  Section 7(1) of Article III of the Constitution reads as rewritten:
"(1)	Officers.  A Secretary of State, an Auditor, a Treasurer, an Attorney General, a Commissioner of Agriculture, a Commissioner of Labor, and a Commissioner of Insurance shall be elected by the qualified voters of the State in 1972 and every four years thereafter, at the same time and places as members of the General Assembly are elected.  Their term of office shall be four years and shall commence on the first day of January next after their election and continue until their successors are elected and qualified."
Sec. 402.  Section 4 of Article IX of the Constitution reads as rewritten:
"Sec. 4.  State Board of Education.
(1)	Board.  The State Board of Education shall consist of the Governor, six members appointed by the Governor, six members elected by the Senate, and six members elected by the House of Representatives.  The General Assembly shall divide the State into twelve educational districts.  Of the elected members of the Board, one shall be elected from each of the twelve educational districts.  Terms shall be for four years, except that three members elected by the Senate, three members elected by the House of Representatives, and three members appointed by the Governor in 1993 shall serve for a two-year term.  Appointments to fill vacancies shall be made as provided by law.  The General Assembly may authorize a member of the General Assembly, a member of the General Assembly after the expiration of his term but before his successor is qualified, a committee of the General Assembly, or a committee of the Senate or the House of Representatives to fill vacancies in positions filled by the Senate or the House of Representatives.
(2)	Superintendent of Public Instruction.  The Superintendent of Public Instruction shall be the secretary and chief administrative officer of the State Board of Education. He shall be appointed by the State Board of Education and shall serve at the pleasure of the State Board of Education."
Sec. 403.  G.S. 115C-10 reads as rewritten:
"§ 115C-10. Appointment of Board.
(a)	The State Board of Education shall consist of the Governor, six members appointed by the Governor, six members elected by the Senate, and six members elected by the House of Representatives.  Not more than one public school employee paid from State or local funds shall serve as an appointive or elective member of the State Board of Education.  No spouse of any public school employee paid from State or local funds and no employee of the Department of Public Instruction or his spouse, shall serve as an appointive or elective member of the State Board of Education.   No appointive or elective member shall serve on the Board within two years of having served in the General Assembly.  
	(b) Appointments and elections shall be for four-year terms, except as provided as follows for initial terms. In 1993 the Governor shall designate three of the members he appoints to serve for two-year terms. In 1993 the Senate shall elect members from the first, third, and fifth educational districts for a two-year term, and in 1993 the Senate shall elect members from the seventh, ninth, and eleventh educational districts for a four-year term. In 1993 the House of Representatives shall elect members from the second, fourth, and sixth educational districts for a two-year term, and in 1993 the House of Representatives shall elect members from the eighth, tenth, and twelfth educational districts for a four-year term. For subsequent elections of the members elected by the Senate and House of Representatives, the Senate and House of Representatives shall alternate the educational districts from which to elect the members.
(c)	The Senate and the House of Representatives, in electing members of the State Board of Education, shall select from a slate of nominees made in each house as provided by resolution of that house.  In the event there is more than one individual who is seeking nomination, the slate of nominees shall contain at least two nominations for any vacancy.
(d)	Appointments to fill vacancies in positions filled by the Governor shall be made by the Governor for the unexpired terms. Appointments to fill vacancies in positions filled by the Senate shall be made by the President Pro Tempore of the Senate when the General Assembly has adjourned a regular session to a date certain, which date is more than 10 days after the date of adjournment, after sine die adjournment of the regular session, or after the beginning of the terms of members of the General Assembly but before convening of the regular session; otherwise, the appointments shall be made by the Senate.  Appointments to fill vacancies in positions filled by the House of Representatives shall be made by the Speaker of the House of Representatives when the General Assembly has adjourned a regular session to a date certain, which date is more than 10 days after the date of adjournment, after sine die adjournment of the regular session, or after the beginning of the terms of members of the General Assembly but before convening of the regular session; otherwise, the appointments shall be made by the House of Representatives.  The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall continue to exercise their authority to fill vacancies under this section until each of their successors in office is selected.
."
Sec. 404.  G.S. 115C-18 reads as rewritten:
"§ 115C-18. Appointment of Superintendent of Public Instruction.
The Superintendent of Public Instruction shall be 
appointed by the State Board of Education and shall serve at the pleasure of the State Board of Education."
Sec. 405.  G.S. 115C-21(a) reads as rewritten:
"(a)	Administrative Duties. – It shall be the duty of the Superintendent of Public Instruction:
(1)	To organize and establish a Department of Public Instruction which shall include such divisions and departments as are necessary for supervision and administration of the public school system, to administer the funds for the operation of the Department of Public Instruction, and to enter into contracts for the operations of the Department of Public Instruction.
(2)	To keep the public informed as to the problems and needs of the public schools by constant contact with all school administrators and teachers, by his personal appearance at public gatherings, and by information furnished to the press of the State.
(3)	To report biennially to the Governor 30 days prior to each regular session of the General Assembly, such report to include information and statistics of the public schools, with recommendations for their improvement and for such changes in the school law as shall occur to him.
(4)	To have printed and distributed such educational bulletins as he shall deem necessary for the professional improvement of teachers and for the cultivation of public sentiment for public education, and to have printed all forms necessary and proper for the administration of the Department of Public Instruction.
(5)	To have under his direction, in his capacity as the chief administrative officer of the State Board of Education, all those matters relating to the supervision and administration of the public school system.
(6)	To create a special fund within the Department of Public Instruction to manage funds received as grants from nongovernmental sources in support of public education. The Superintendent may accept grants and gifts from corporations and other sources made in support of public education and may hold and disburse such funds, in accordance with the purposes, conditions, and limitations associated with such grants and gifts. Any special fund created pursuant to this subdivision shall be subject to audit by the State Auditor."
Sec. 406.  G.S. 115C-65 reads as rewritten:
"§ 115C-65. State divided into districts.
The State of North Carolina shall be divided into 12 educational 

districts.  The 12 educational districts are the same as the districts specified for the purpose of nominating and electing members of the House of Representatives of the Congress of the United States in 1992."
Sec. 407.  G.S. 143A-42 reads as rewritten:
"§ 143A-42. Superintendent of Public Instruction; transfer of office and Department of Public Instruction; powers and duties.
The office of the Superintendent of Public Instruction, as provided for by Article IX, Sec. 4(2), of the Constitution, and the Department of Public Instruction are hereby transferred to the Department of Public Education. The Superintendent of Public Instruction shall be the secretary and chief administrative officer of the State Board of Education, and shall have such powers and duties as are conferred by the Constitution, by the State Board of Education, Chapter 115C of the General Statutes, and the laws of this State."
Sec. 408.  G.S. 147-3(c) reads as rewritten:
"(c)	The general civil executive officers of this State are as follows:
(1)	A Governor;
(2)	A Lieutenant Governor;
(3)	Private secretary for the Governor;
(4)	A Secretary of State;
(5)	An Auditor;
(6)	A Treasurer;
(7)	An Attorney General;
	(9)	The members of the Governor's Council;
(10)	A Commissioner of Agriculture;
(11)	A Commissioner of Labor;
(12)	A Commissioner of Insurance."
Sec. 409.  G.S. 147-4 reads as rewritten:
"§ 147-4. Executive officers – election; term; induction into office.
The executive department shall consist of a Governor, a Lieutenant Governor, a Secretary of State, an Auditor, a Treasurer, an Attorney General, a Commissioner of Agriculture, a Commissioner of Insurance, and a Commissioner of Labor, who shall be elected for a term of four years, by the qualified electors of the State, at the same time and places, and in the same manner, as members of the General Assembly are elected. Their term of office shall commence on the first day of January next after their election and continue until their successors are elected and qualified. The persons having the highest number of votes, respectively, shall be declared duly elected, but if two or more be equal and highest in votes for the same office, then one of them shall be chosen by joint ballot of both houses of the General Assembly. Contested elections shall be determined by a joint ballot of both houses of the General Assembly in such manner as shall be prescribed by law."
Sec. 410. G.S. 147-11.1 reads as rewritten:
"§ 147-11.1. Succession to office of Governor; Acting Governor.
(a)	Lieutenant Governor. –
(1)	The Lieutenant Governor-elect shall become Governor upon the failure of the Governor-elect to qualify. The Lieutenant Governor shall become Governor upon the death, resignation, or removal from office of the Governor. The further order of succession to the office of Governor shall be prescribed by law. A successor shall serve for the remainder of the term of the Governor whom he succeeds and until a new Governor is elected and qualified.
(2)	During the absence of the Governor from the State, or during  the physical or mental incapacity of the Governor to perform the duties of his office, the Lieutenant Governor shall be Acting Governor. The further order of succession as Acting Governor shall be prescribed by law.
(b)	President of Senate, Speaker of the House and Other Officers. –
(1)	If, by reason of failure to qualify, death, resignation, or removal from office, there is neither a Governor nor a Lieutenant Governor to discharge the powers and duties of the office of Governor, then the President of the Senate shall, upon his resignation as President of the Senate and as Senator, become Governor.
(2)	If, at the time when under subdivision (1) of this subsection the President of the Senate is to become Governor, there is no President of the Senate, or the President of the Senate fails to qualify as Governor, then the Speaker of the House of Representatives shall, upon his resignation as Speaker and as Representative, become Governor.
(3)	If, at the time when under subdivision (2) of this subsection the Speaker of the House of Representatives is to become Governor, there is no Speaker of the House of Representatives, or the Speaker of the House of Representatives fails to qualify as Governor, then that officer of the State of North Carolina who is highest on the following list, and who is not under disability to serve as Governor, shall, upon his resignation of the office which places him in the order of succession, become Governor: Secretary of State, Auditor, Treasurer, Attorney General, Commissioner of Agriculture, Commissioner of Labor, and Commissioner of Insurance.
(c)	Acting Governor Generally. –
(1)	If, by reason of absence from the State or physical or mental incapacity, there is neither a Governor nor a Lieutenant Governor qualified to discharge the powers and duties of the office of Governor, then the President of the Senate shall become Acting Governor.
(2)	If, at the time when under subdivision (1) of this subsection the President of the Senate is to become Acting Governor, there is no President of the Senate, or the President of the Senate fails to qualify as Acting Governor, then the Speaker of the House of Representatives shall become Acting Governor.
(3)	If, at the time when under subdivision (2) of this subsection the Speaker of the House of Representatives is to become Acting Governor, there is no Speaker of the House of Representatives, or the Speaker of the House of Representatives fails to qualify as Acting Governor, then that officer of the State of North Carolina who is highest on the following list, and who is not under disability to serve as Acting Governor, shall become Acting Governor: Secretary of State, Auditor, Treasurer, Attorney General, Commissioner of Agriculture, Commissioner of Labor, and Commissioner of Insurance.
(d)	Governor Serving under Subsection (c). – An individual serving as Acting Governor under subsection (c) of this section shall continue to act for the remainder of the term of the Governor whom he succeeds and until a new Governor is elected and qualified, except that:
(1)	If his tenure as Acting Governor is founded in whole or in part upon the absence of both the Governor and Lieutenant Governor from the State, then he shall act only until the Governor or Lieutenant Governor returns to the State; and
(2)	If his tenure as Acting Governor is founded in whole or in part upon the physical or mental incapacity of the Governor or Lieutenant Governor, then he shall act only until the removal of the incapacity of the Governor or Lieutenant Governor.
(e)	Officers to Which Subsections (b), (c) and (d) Applicable. – Subsections (b), (c), and (d) of this section shall apply only to such officers as are eligible to the office of Governor under the Constitution of North Carolina, and only to officers who are not under impeachment by the House of Representatives at the time they are to become Governor or Acting Governor.
(f)	Compensation of Acting Governor. – During the period that any  individual serves as Acting Governor under subsection (c) of this section, his compensation shall be at the rate then provided by law in the case of the Governor."
Sec. 411. G.S. 163-1 is amended by deleting the entries in the table for "Superintendent of Public Instruction".
Sec. 412. G.S. 163-8 reads as rewritten:
"§ 163-8.  Filling vacancies in State executive offices.
If the office of Governor or Lieutenant Governor shall become vacant, the provisions of G.S. 147-11.1 shall apply. If the office of any of the following officers shall be vacated by death, resignation, or otherwise than by expiration of term, it shall be the duty of the Governor to appoint another to serve until his successor is elected and qualified: Secretary of State, Auditor, Treasurer, Attorney General, Commissioner of Agriculture, Commissioner of Labor, and Commissioner of Insurance. Each such vacancy shall be filled by election at the first election for members of the General Assembly that occurs more than 60 days after the vacancy has taken place, and the person chosen shall hold the office for the remainder of the unexpired four-year term: Provided, that when a vacancy occurs in any of the offices named in this section and the term expires on the first day of January succeeding the next election for members of the General Assembly, the Governor shall appoint to fill the vacancy for the unexpired term of the office.
Upon the occurrence of a vacancy in the office of any one of these  officers for any of the causes stated in the preceding paragraph, the Governor may appoint an acting officer to perform the duties of that office until a person is appointed or elected pursuant to this section and Article III, Section 7 of the State Constitution, to fill the vacancy and is qualified."
Sec. 413.  G.S. 163-278.27 reads as rewritten:
"§ 163-278.27. Penalty for violations; duty to report and prosecute.
(a)	Any individual, candidate, political committee, referendum committee, treasurer, person or media who violates the provisions of G.S. 163-278.7, 163-278.8, 163-278.9, 163-278.10, 163-278.11, 163-278.12, 163-278.14, 163-278.16, 163-278.17, 163-278.18, 163-278.40A, 163-278.40B, 163-278.40C, 163-278.40D or 163-278.40E is guilty of a misdemeanor.
(b)	Whenever the Board has knowledge of or has reason to believe there has been a violation of any section of this Article, it shall report that fact, together with accompanying details, to the following prosecuting authorities:
(1)	In the case of a candidate for nomination or election to the State Senate or State House of Representatives: report to the district attorney of the prosecutorial district in which the candidate for nomination or election resides;
(2)	In the case of a candidate for nomination or election to the  office of Governor, Lieutenant Governor, Secretary of State, State Auditor, State Treasurer, State Attorney General, State Commissioner of Agriculture, State Commissioner of Labor, State Commissioner of Insurance, and all other State elective offices, Justice of the Supreme Court, Judge of the Court of Appeals, judge of a superior court, judge of a district court, and district attorney of the superior court: report to the district attorney of the prosecutorial district in which Wake County is located;
(3)	In the case of an individual other than a candidate, including, without limitation, violations by members of political committees, referendum committees or treasurers: report to the district attorney of the prosecutorial district in which the individual resides; and
(4)	In the case of a person or any group of individuals: report to the district attorney or district attorneys of the prosecutorial district or districts in which any of the officers, directors, agents, employees or members of the person or group reside.
(c)	Upon receipt of such a report from the Board, the appropriate district attorney shall prosecute the individual or persons alleged to have violated a section or sections of this Article."
Sec. 414.  The amendments set out in Sections 401 and 402 of this act shall be submitted to the qualified voters of the State at an election to be held on November 3, 1992, which election shall be conducted under the laws then governing elections in the State. At that election, each qualified voter desiring to vote shall be provided a ballot on which shall be printed the following:
"[]	FOR Constitutional amendments to change the composition of the State Board of Education and to make the Superintendent of Public Instruction an appointee of the State Board of Education.
[]	AGAINST Constitutional amendments to change the composition of the State Board of Education and to make the Superintendent of Public Instruction an appointee of the State Board of Education."
	Those qualified voters favoring the amendments set out in Sections 401 and 402 of this act shall vote by making an "X”or a check mark in the square beside the statement beginning "FOR", and those qualified voters opposed to those amendments shall vote by making an "X”or check mark in the square beside the statement beginning "AGAINST".
	Notwithstanding the foregoing provisions of this section, voting machines may be used in accordance with rules prescribed by the State Board of Elections.
Sec. 415. If a majority of votes cast thereon are in favor of the amendments set out in Sections 401 and 402 of this act, the State Board of Elections shall certify the amendments to the Secretary of State, who shall enroll the amendments so certified among the permanent records of his office, and the amendments shall become effective upon such certification, except that:
(1)	Until March 31, 1993, such amendments do not affect the manner of filling vacancies of the Superintendent of Public Instruction for the term that commenced January 1, 1993;
(2)	The term of office of the Superintendent of Public Instruction for the term that commenced January 1, 1993, is terminated March 31, 1993, except that he shall continue to serve until a superintendent of public instruction is appointed under G.S. 115C-18, and he shall continue to serve as a member of the Council of State until March 31, 1993; and
(3)	The term of office of all members of the State Board of Education who were appointed or elected prior to March 31, 1993, and the terms of the Lieutenant Governor and State Treasurer on the State Board of Education shall expire on March 31, 1993.
Sec. 416.  Sections 403 through 413 of this act shall become effective only if the Constitutional amendments set out in Sections 401 and 402 of this act are approved by the voters.  If the Constitutional amendments are approved by the voters, Sections 403 through 413 of this act shall become effective March 31, 1993.  Sections 414 and 415 of this act are effective upon ratification.
Sec. 417. This Title is effective upon ratification.