GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	2 

SENATE BILL 1094
Appropriations Committee Substitute Adopted 7/24/92

Short Title:  Capital Needs/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 APPROPRIATE FUNDS FOR ESSENTIAL CAPITAL IMPROVEMENTS FOR THE 1992-93 FISCAL YEAR, TO MAKE CONFORMING STATUTORY CHANGES, AND TO MAKE TECHNICAL CORRECTIONS ESSENTIAL TO EFFECT THE BUDGET OPERATION OF THE STATE.
The General Assembly of North Carolina enacts:

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

Sec. 2.  This act 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 act.  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 act.

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 Human Resources
(Total)	$ 10,504,300
1. Dix Campus-Male Wing Renovation	$ 3,004,600
2. Umstead Hospital-New Psychiatric Unit	7,499,700

University Board of Governors
1. Hazardous Waste Facility at North Carolina
   State University	2,722,300

Office of State Budget & Management
(Total)	104,973,400
1. Reserve for Repairs and Renovations-Statewide	15,000,000
2. Reserve for Appropriation by 1993
   General Assembly	89,973,400

TOTAL CAPITAL IMPROVEMENTS/GENERAL FUND	$118,200,000

PART 4A. NONRECURRING APPROPRIATIONS/GENERAL FUND

Sec. 4.1.  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 one-time expenditures according to the following schedule:

1. North Carolina State University-
  Study of cleanup requirements for 
  former disposal site for hazardous
  waste near Carter-Finley stadium and
  reimbursement to EPA - Consent
  agreement 	600,000

TOTAL NONRECURRING/GENERAL FUND	600,000

GRAND TOTAL GENERAL FUND	$118,800,000

PART 5. OFFICE OF STATE BUDGET AND MANAGEMENT

BUDGET REFORM STATEMENTS/APPROPRIATIONS ADJUSTMENTS
Sec. 5. (a) The General Fund appropriations availability upon which the modifications contained in this act to the General Fund budget for the 1992-93 fiscal year are based is one hundred eighteen million eight hundred thousand dollars ($118,800,000).  This amount is comprised of the following components:
(1)	1991-92 Revenue Collections:
a.  Budgeted	$ 7,647,025,000
b.  Actual (latest estimate)	7,638,025,000
c.  Difference	(9,000,000)
(2)	1991-92 Unexpended Appropriations
a.  Reversions	   169,000,000
Estimated June 30, 1992 Credit
Balance	160,000,000
(3)	Earmarked for Savings Reserve	(40,000,000)
(4)	Credit Balance used in Chapter
900, 1991 Session Laws	(1,200,000).
(b) Funds appropriated in this act to the Reserve for Appropriation by the 1993 General Assembly shall not be expended or withdrawn for any purpose except by act of the General Assembly.

PERMIT DEVIATION FROM EXPENDITURE OF FUNDS RESTRICTION
Sec. 6.  For the 1992-93 fiscal year only, G.S. 143-16.3 does not apply to items for which appropriations were included in the Second or Third Edition of Senate Bill 1205 of the 1991 General Assembly.  Also, notwithstanding G.S. 143-16.3, for the 1992-93 fiscal year only, the Director of the Budget may authorize the Department of Correction, Division of Adult Probation and Parole, to hire temporary employees to work on data entry.
The Director of the Budget shall notify the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Fiscal Research Division of the Legislative Services Office that he intends to authorize an expenditure pursuant to this section at least 10 days before he authorizes such an expenditure.
The Director of the Budget shall report on a monthly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office on any expenditures that he authorizes under this section.

PART 6. GENERAL ASSEMBLY

TECHNICAL CORRECTIONS
Sec. 7.  (a)	Section 41 of Chapter 900, 1991 Session Laws, is amended by deleting the phrase "G.S. 7A-171.1(4)”and substituting the phrase "G.S. 7A-171.1(a)(4)".
(b)	This section is effective July 1, 1992.
Sec. 8. (a)	Section 136(a) of Chapter 900, 1991 Session Laws, reads as rewritten:
"(a)	Of the funds appropriated in this act to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of nine million dollars ($9,000,000) for the 1992-93 fiscal year shall be expended in accordance with the plans developed by the Mental Health Study Commission and adopted by the General Assembly.
These funds shall be allocated as follows:
(1)	Services for the mentally ill	$3,000,000;
(2)	Services for the developmentally
disabled	
	$3,000,000;
	and
(3)	Services for substance abusers	$3,000,000.
(b)	This section is effective July 1, 1992.
Sec. 9.  Section 180 of Chapter 900, 1991 Session Laws, reads as rewritten:
"(a)	Except where expressly repealed or amended by this act, the provisions of Chapters 689, 742, 760, 761, and 812 of the 1991 Session Laws remain in effect.
(b)	Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 1992-93 fiscal year in Chapters 689, 742, 760, 761, and 812 of the 1991 Session Laws that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes."
Sec. 10. (a)	G.S. 36A-59.21, as enacted by Chapter 768 of the 1991 Session Laws, is repealed.
(b)	This section is effective July 1, 1992.

PART 7. MISCELLANEOUS PROVISIONS

RESERVE FOR ADVANCE PLANNING
Sec. 11.  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.

ENCUMBERED APPROPRIATIONS AND PROJECT RESERVE FUND
Sec. 12.  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.

PROJECT COST INCREASE
Sec. 13.  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.

NEW PROJECT AUTHORIZATION
Sec. 14.  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.

ADVANCE PLANNING OF CAPITAL IMPROVEMENT PROJECTS
Sec. 15.  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.

APPROPRIATIONS LIMITS/REVERSION OR LAPSE
Sec. 16.  Except as permitted in previous sections of this act, 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 act.  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.

1991-92 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 17.  (a)	Except where expressly repealed or amended by this act, the provisions of Chapters 689, 742, 760, 761, 812, and 900 of the 1991 Session Laws remain in effect.
(b)	Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 1992-93 fiscal year in Chapters 689, 742, 760, 761, 812, and 900 of the 1991 Session Laws that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes.

EFFECT OF HEADINGS
Sec. 18.  The headings to the parts and sections of this act are a convenience to the reader and are for reference only.  The headings do no expand, limit, or define the text of this act.

Requested by:  Senators Basnight, Plyler
EFFECTIVE DATE
Sec. 19.  This act is effective July 1, 1992.