GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	2 

SENATE BILL 753
Appropriations Committee Substitute Adopted 4/25/91

Short Title:  1991 Current Operations.	(Public)
─────────────────────────────────────── 
Sponsors:
─────────────────────────────────────── 
Referred to:  
─────────────────────────────────────── 

April 22, 1991

A BILL TO BE ENTITLED
AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
The General Assembly of North Carolina enacts:

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

Requested by:  Senators Basnight, Plyler
––-TITLE OF ACT
Sec. 2.  This act shall be known as "The Current Operations Appropriations Act of 1991."

PART I.––-GENERAL FUND APPROPRIATIONS

––-CURRENT OPERATIONS/GENERAL FUND
Sec. 3.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the biennium ending June 30, 1993, according to the following schedule:

Current Operations-General Fund	1991-92	 1992-93

General Assembly	$   18,173,934 $   21,179,736 

Judicial Department	210,606,889 212,962,555 

Department of the Governor
01.	Office of the Governor	5,731,392 5,746,298 
02.	Office of State Budget
and Management	3,874,628 4,001,206 

Lieutenant Governor's Office	550,773 552,511 

Department of Secretary of State	4,574,606 4,159,823 

Department of State Auditor	13,074.580 13,089,743 

Department of State Treasurer	4,957,366 4,969,228 

Department of Public Education	3,242,278,048 3,299,854,451

Department of Justice	48,881,924 48,269,160 

Department of Administration
01.	Administration	48,416,928 51,155,369 
02.	State Controller	5,123,929 5,131,960 

Department of Agriculture	41,226,371 41,068,448 

Department of Labor	8,506,435 8,515,072 

Department of Insurance	12,928,411 12,948,061 

Department of Transportation
01.	Aeronautics	8,200,000 8,000,000 
02.	Aid to Railroads	128,406 100,000 

Total Department of
Transportation	8,328,406 8,100,000 

Department of Environment, Health, and
Natural Resources	177,981,058 178,045,685 

Office of Administrative Hearings	1,291,507     -     

Administrative Rules Review Commission	264,804 264,981 

Department of Human Resources
01.	Alcohol Drug Abuse Treatment Center - 
Black Mountain	3,885,588 3,898,416 
02.	Alcohol Drug Abuse Treatment Center - 
Butner	3,276,808 3,292,752 
03.	Alcohol Drug Abuse Treatment Center - 
Greenville	3,308,437 3,323,543 
04.	N.C. Special Care Center	707,654 749,150 
05.	Black Mountain Center	1,822,718 2,127,879 
06.	DHR - Secretary	11,006,588 11,007,196 
07.	Division of Aging	8,512,393 8,513,079 
08.	Schools for the Deaf and
Hard of Hearing	19,425,130 19,557,294 
09.	Social Services	131,403,232 138,209,315 
10.	Medical Assistance	531,054,585 610,720,480 
11.	Social Services-State Aid to
Non-State Agencies	5,440,669 5,440,669 
12.	Division of Services for the
Blind	12,114,015 12,133,340 
13.	Division of Mental Health,
Developmental Disabilities and
Substance Abuse Services	186,128,759 187,029,903 
14.	Dorothea Dix Hospital	35,814,707 38,113,858 
15.	Broughton Hospital	29,898,420 31,460,212 
16.	Cherry Hospital	31,085,044 32,378,257 
17.	John Umstead Hospital	31,141,116 34,535,642 
18.	Western Carolina Center	1,963,844 2,202,944 
19.	O'Berry Center	2,428,398 2,629,689 
20.	Murdoch Center	9,622,543 9,794,616 
21.	Caswell Center	6,728,002 8,676,916 
22.	Division of Facility Services	29,537,974 30,537,974 
23.	Division of Vocational
Rehabilitation Services	22,165,279 22,165,857 
24.	Division of Youth Services	46,131,082 46,177,299 
Total Department of
Human Resources	1,164,602,985 1,264,676,280 

Department of Correction	482,816,150 498,455,450 

Department of Economic and Community
Development
01.	Economic and Community
Development	25,419,965 25,444,011 
02.	Biotechnology Reserve	7,157,547 7,157,547 
03.	MCNC	16,525,140 16,000,000 
04.	Rural Economic Development
Center	1,530,627 1,514,766

Department of Revenue	54,587,880 54,558,398 

Department of Cultural Resources	39,251,887 39,968,999 

Department of Crime Control
and Public Safety	27,674,793 27,852,591 

University of North Carolina - Board
of Governors
01.	General Administration	15,468,959 16,891,790 
02.	University Institutional
Program	5,268,434 5,368,434 
03.	Related Educational Programs	44,459,166 44,935,166 
04.	University of North Carolina
at Chapel Hill
a.  Academic Affairs	135,520,285 141,989,138 
b.  Health Affairs	100,358,492 105,307,623 
c.  Area Health Education
    Centers	31,321,518 31,294,282 
05.	North Carolina State University
at Raleigh
a.  Academic Affairs	173,620,316 176,855,148 
b.  Agricultural Research
    Service	35,991,687 35,832,360 
c.  Agricultural Extension
    Service	28,188,217 28,058,646 
06.	University of North Carolina at
Greensboro	55,431,875 55,752,060 
07.	University of North Carolina at
Charlotte	56,481,700 56,616,999 
08.	University of North Carolina at
Asheville	16,799,573 16,928,588 
09.	University of North Carolina at
Wilmington	32,860,572 33,035,418 
10.	East Carolina University
a.  Academic Affairs	73,660,951 74,021,275 
b.  Division of Health Affairs	51,805,884 53,804,404 
11.	North Carolina Agricultural and
Technical State University	36,456,517 36,728,111 
12.	Western Carolina University	35,148,490 35,380,827 
13.	Appalachian State University	53,437,177 53,654,902 
14.	Pembroke State University	16,061,541 16,040,837 
15.	Winston-Salem State University	15,995,859 16,108,285 
16.	Elizabeth City State
University	15,031,726 15,017,653 
17.	Fayetteville State University	17,036,946 17,022,408 
18.	North Carolina Central
University	26,813,491 26,920,734 
19.	North Carolina School of the
Arts	8,415,496 8,427,137 
20.	North Carolina School of
Science and Mathematics	7,210,271 7,155,663 
21.	UNC Hospitals at Chapel Hill	38,557,139 47,094,644 
Total University of North
Carolina	1,127,402,282 1,156,242,532 

Department of Community
Colleges	364,036,756 364,583,295 

State Board of Elections	474,817 435,187 

Contingency and Emergency	1,125,000 1,125,000 

Reserve for Salary Adjustments	500,000 500,000 

Reserve for Lowest Paid Employees	750,000 750,000 

Debt Service	     76,028,270      73,049,578  

GRAND TOTAL CURRENT OPERATIONS –
GENERAL FUND	$7,246,656,088 $7,452,327,921 

PART II.––-CURRENT OPERATIONS/HIGHWAY FUND

Sec. 4.  Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the biennium ending June 30, 1993, according to the following schedule:

Current Operations-Highway Fund	1991-92	 1992-93

Department of Transportation
01.	Administration	$   34,627,360 $   34,785,517 
02.	Division of Highways
a.	Administration and
Operations	33,084,409 33,151,051 
b.	State Construction
(01)	Primary Construction	    -       -   
(02)	Secondary 
Construction	66,121,926 66,717,023 
(03)	Urban Construction	10,805,664 9,828,266 
(04)	Access and Public
Service Roads	2,000,000 2,000,000 
(05)	Special Appropriation
for Highways	5,000 5,000 
(06)	Spot Safety
Improvements	9,100,000 9,100,000 
c.	State Funds to Match Federal
Highway Aid
(01)	Construction	65,992,066 65,992,066 
(02)	Planning Survey and Highway
Planning Research	2,959,649 2,959,649 
d.	State Maintenance
(01)	Primary	85,882,433 85,882,433 
(02)	Secondary	151,355,630 151,355,630 
(03)	Urban	22,714,972 22,714,972 
(04)	Contract Resurfacing	100,000,000 102,500,000 
e.	Ferry Operations	16,547,896 16,547,896 
03.	Division of Motor Vehicles	75,249,105 75,416,064 
04.	Governor's Highway Safety Program	290,279 290,617 
	05.	State Aid to Municipalities	66,121,926 66,717,023 
06.	State Aid for Public
Transportation	5,038,766 5,046,001 
07.	Salary Adjustments for Highway
Fund Employees	200,000 200,000 
08.	Reserve to Correct Occupational
Safety and Health Conditions	425,000 425,000 
09.	Reserve to Continue DOT
Merit Salary Increases	4,510,383 4,510,383 
10.	Debt Service	38,227,230 38,018,250 

Appropriations for Other State Agencies
01.	Crime Control and Public
Safety	86,129,004 88,604,722 
02.	Other Agencies
a.	Department of Agriculture	2,892,001 2,790,013 
b.	Department of Revenue	1,921,279 1,923,941 
	c.	Department of Environment,
Health, and Natural
Resources:
LUST Trust Fund	5,186,720 5,586,046 
Chemical Test Program	380,176 380,176 
d.	Department of Correction	4,633,856 4,633,856 
e.	Department of Justice	240,250 240,250 
f.	Department of Public
Education	    22,930,662      22,868,826  

GRAND TOTAL CURRENT OPERATIONS –
HIGHWAY FUND	$  915,573,642 $  921,190,671 

PART III.––-HIGHWAY TRUST FUND

Sec. 4.1.
	1991-92	1992-93
01.	Intrastate System	$  209,895,893 $  212,129,190 
02.	Secondary Roads Construction	48,722,975 49,857,300 
03.	Urban Loops	84,873,157 85,776,210 
04.	State Aid - Municipalities	22,022,975 22,257,300 
05.	Program Administration	10,669,071 10,653,351 
06.	Transfer to General Fund	   170,000,000    170,000,000  

GRAND TOTAL/HIGHWAY TRUST FUND	$  546,184,071 $  550,673,351 

PART IV.––-BLOCK GRANT APPROPRIATIONS

Requested by: Senators Richardson, Martin of Pitt
––-BLOCK GRANT PROVISIONS
Sec. 5.  (a)	Appropriations from federal block grant funds are made for the fiscal year ending June 30, 1992, according to the following schedule:
TOTAL JOB TRAINING PARTNERSHIP ACT	$ 35,316,871

COMMUNITY SERVICES BLOCK GRANT

01.	Community Action Agencies	$  8,906,905

02.	Limited Purpose Agencies	494,305

03.	Department of Human Resources
to administer and monitor
the activities of the
Community Services Block Grant	484,890

TOTAL COMMUNITY SERVICES BLOCK GRANT	$  9,886,100

COMMUNITY DEVELOPMENT BLOCK GRANT

01.	State Administration	$    913,140

02.	Urgent Needs/Contingency	   1,987,193

03.	Development Planning/Housing	   1,987,193

04.	Economic Development	   7,948,772

05.	Community Revitalization	  27,820,702

TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT	$ 40,657,000

PREVENTIVE HEALTH BLOCK GRANT

01.	Emergency Medical Services	$    451,915

02.	Basic Public Health Services    	928,395

03.	Hypertension Programs	590,230

04.	Health Education/Risk Reduction Programs and
Health Promotion/Local Health Departments	   1,013,371

05.	Fluoridation of Water Supplies	158,134

06.	Rape Prevention and Rape
Crisis Programs	 91,269

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

08.	TB Control Program	 61,787

TOTAL PREVENTIVE HEALTH BLOCK GRANT	$  3,585,678

MATERNAL AND CHILD HEALTH SERVICES

01.	Healthy Mother/Healthy Children
Block Grants to Local Health
Departments	$ 11,788,781

02.	High Risk Maternity Clinic Services,
Perinatal Education, and Consultation
to Local Health Departments
and Other Health Care Providers	   1,554,303

03.	Services to Disabled Children	   5,367,054

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

TOTAL MATERNAL AND CHILD
HEALTH SERVICES 	$ 18,830,668

SOCIAL SERVICES BLOCK GRANT

01.	County Departments of Social Services	$ 42,846,858

02.	Allocation for In-Home Services provided
by County Departments of
Social Services       	   1,184,524

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

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

05.	Division of Youth Services	   1,037,868

06.	Division of Facility Services	330,573

07.	Division of Aging	333,656

08.	Day Care Services	  12,158,899

09.	Volunteer Services	 55,086

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

11.	Voluntary Sterilization Funds	 98,710

12.	Transfer to Maternal and Child
Health Block Grant	   1,670,089

13.	Adult Day Care Services	652,889

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

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

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

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

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

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

TOTAL SOCIAL SERVICES BLOCK GRANT	$ 74,292,950

LOW INCOME ENERGY BLOCK GRANT

01.	Energy Assistance Programs	$ 18,407,453

02.	Crisis Intervention	   4,441,897

03.	Administration	   1,981,400

04.	Weatherization Program	   1,737,187

05.	Indian Affairs	 27,222

06.	Transfer to Preventive Health Block Grant
for Emergency Medical Services Program	209,116

07.	Transfer to Social Services
Block Grant for Adult
Day Care Services	417,648

08.	Transfer to Social Services Block
Grant for State Administration
& Contract Service	192,748

09.	Transfer to Maternal and Child Health
Block Grant in the Division of
Maternal and Child Health
for Healthy Mothers and Children	   1,696,362

10.	Transfer to SSBG for allocation to the
Department of Administration for
the North Carolina Fund for Children	45,270

TOTAL LOW INCOME ENERGY BLOCK GRANT	$ 29,156,303

ALCOHOL AND DRUG ABUSE AND MENTAL HEALTH
SERVICES BLOCK GRANT

01.	Allocate funds to the four regional
offices on a per capita basis
for mental health services 	$  1,866,556

02.	Programs for the Chronically
Mentally Ill	   3,336,748

03.	Continuation of child mental health
nonresidential services in
accordance with the Child Mental
Health Plan	315,013

04.	Continuation of child mental health
residential services including group
homes, specialized foster care,
therapeutic homes, professional
parenting programs, and respite care,
with an emphasis on children under
the age of 12	359,703

05.	Continuation and expansion of community-
based alcohol and drug services
including prevention, early inter-
vention, treatment, rehabilitation,
nonhospital medical detoxification,
and training                          	   6,121,682

06.	Continuation and expansion of services
to female substance abusers,
including specialized services at
the ADATCS	   2,652,698

07.	Continuation and expansion of services to
IV drug abusers, including increased
capacity for drug screens and IV
services at the ADATCS	   3,518,950

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

09.	Funding to support the provision of
Treatment Alternatives to Street
Crimes (TASC) programs for adults
and four demonstration projects with
local jails	462,104

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

11.	Administration	   1,085,098

TOTAL ALCOHOL, DRUG ABUSE AND
MENTAL HEALTH SERVICES
BLOCK GRANT	$ 23,907,526

MENTAL HEALTH SERVICES FOR THE HOMELESS
BLOCK GRANT

01.	Specialized Community Services for the
Chronically Mentally Ill	$    420,000
02.	Community-Based Services for Chronically
Mentally Ill Youth	 97,656
03.	Administration 	 13,344

TOTAL MENTAL HEALTH SERVICES FOR THE
HOMELESS BLOCK GRANT	$    531,000

COMMUNITY YOUTH ACTIVITY PROGRAM BLOCK GRANT

01.	Development of Community-Based Substance
Abuse Prevention Programs
for Youth	$     92,091

TOTAL COMMUNITY YOUTH ACTIVITY PROGRAM
BLOCK GRANT	$     92,091

CHILD CARE AND DEVELOPMENT BLOCK GRANT

01.	Child Day Care Services	  14,752,146

02.	Head Start Wrap-Around	   3,337,000

03.	Revolving Loans/Grants	500,000

04.	County Day Care Coordinators	467,167

05.	Staff/Child Ratio Reduction	208,300

06.	Study of Day Care Salaries	100,000

07.	Child Care Worker Credentials	100,000

08.	Resource and Referral Programs	650,000

09.	Facility Services Administration	202,054

TOTAL CHILD CARE AND DEVELOPMENT
BLOCK GRANT	$ 20,316,667

(b) Decreases in Federal Fund Availability
If federal funds are reduced below the amounts specified above after the effective date of this act, then every program, in each of the federal block grants listed above, shall be reduced by the same percentage as the reduction in federal funds.
	(c) Increases in Federal Fund Availability
Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended as follows:
(1)	For the Community Development Block Grant or for the Preventive Health Block Grant – each program category under the Community Development Block Grant or the Preventive Health Block Grant, as applicable, shall be increased by the same percentage as the increase in federal funds.
(2)	For the Maternal and Child Health Services Block Grant – these additional funds shall be allocated to local health departments to assist in the reduction of infant mortality.
(3)	For other block grants – these additional funds may be budgeted by the appropriate department, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.  All these budgeted increases shall be reported to the Joint Legislative Commission on Governmental Operations and to the Director of the Fiscal Research Division.
This subsection shall not apply to Job Training Partnership Act funds.
(d) Education Setaside of JTPA Funds
The Department of Economic and Community Development shall certify to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office when Job Training Partnership Act funds have been distributed to each agency, the total amount distributed to each agency, and the total amount of eight percent (8%) Education Setaside funds received.

PART V.––-GENERAL PROVISIONS

Requested by: Senators Basnight, Plyler
––-SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS/AUTHORIZATION FOR EXPENDITURES
Sec. 6.  There is appropriated out of the cash balances, federal receipts, and departmental receipts available to each department, sufficient amounts to carry on authorized activities included under each department's operations.  All these cash balances, federal receipts, and departmental receipts shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by statute.  The Director of the Budget shall develop necessary budget controls, regulations, and systems to ensure that these funds and other State funds subject to the Executive Budget Act, may not be spent in a manner which would cause a deficit in expenditures.
Pursuant to G.S. 143-34.2, State departments, agencies, institutions, boards, or commissions may make application for, receive, or disburse any form of non-State aid.  All non-State monies received shall be deposited with the State Treasurer unless otherwise provided by State law.  These funds shall be expended in accordance with the terms and conditions of the fund award that are not contrary to the laws of North Carolina.

Requested by: Senators Basnight, Plyler
––-INSURANCE AND FIDELITY BONDS
Sec. 7.  All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Insurance Department, and the cost of placement shall be paid by the affected department, institution, or agency with the approval of the Insurance Commissioner.

Requested by:   Senators Basnight, Plyler
––-CONTINGENCY AND EMERGENCY FUND ALLOCATION
Sec. 8.  Of the funds appropriated in this act to the Contingency and Emergency Fund, $900,000 for the 1991-92 fiscal year and $900,000 for the 1992-93 fiscal year shall be designated for emergency allocations, which are for the purposes outlined in G.S. 143-23(a1).  $225,000 for the 1991-92 fiscal year and $225,000 for the 1992-93 fiscal year shall be designated for other allocations from the Contingency and Emergency Fund.

Requested by: Senators Basnight, Plyler
––-BUDGETING OF PILOT PROGRAMS
Sec. 9.  (a)	Any program designated by the General Assembly as experimental, model, or pilot shall be shown as a separate budget item and shall be considered as an expansion item until a succeeding General Assembly reapproves it.
	Any new program funded in whole or in part through a special appropriations bill shall be designated as an experimental, model, or pilot program.
	(b)	The Governor shall submit to the General Assembly with his proposed budget a report of which items in the proposed budget are subject to the provisions of this section.

Requested by:   Senators Basnight, Plyler
––-AUTHORIZED TRANSFERS
Sec. 10.  The Director of the Budget may transfer to General Fund budget codes from the General Fund salary adjustment appropriation, and may transfer to Highway Fund budget codes from the Highway Fund salary adjustment appropriation, amounts required to support approved salary adjustments made necessary by difficulties in recruiting and holding qualified employees in State government.  The funds may be transferred only when the use of salary reserve funds in individual operating budgets is not feasible.

Requested by:   Senators Basnight, Plyler
––-EXPENDITURES OF FUNDS IN RESERVES LIMITED
Sec. 11.  All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.

Requested by:   Senator Martin of Pitt
––-NONPROFITS MAY RELINQUISH FUNDS
Sec. 12.  G.S. 143-6.1 reads as rewritten:
"§ 143-6.1.  Information from private organizations receiving State funds.
Every private person, corporation, organization, and institution which receives, uses or expends any State funds shall use or expend such funds only for the purposes for which such State funds were appropriated by the General Assembly or collected by the State.
Each private person, corporation, organization, and institution which uses or expends State funds in the amount of twenty-five thousand dollars ($25,000) or more annually, except when the funds are compensation for goods or services, shall file annually with the State Auditor and with the Joint Legislative Commission on Governmental Operations a financial statement in such form and on such schedule as shall be prescribed by the State Auditor, and shall furnish to the State Auditor for audit all books, records and other information as shall be necessary for the State Auditor to account fully for the use and expenditure of State funds.  Each such private person, corporation, organization, and institution shall furnish such additional financial or budgetary information as shall be requested by the State Auditor or by the Joint Legislative Commission on Governmental Operations.  The State shall not disburse State funds appropriated by the General Assembly or collected by the State for use by any private person, corporation, organization, or institution unless that person, corporation, organization, or institution has provided all the reports and financial information required by this section. All financial statements furnished to the State Auditor or to the Joint Legislative Commission on Governmental Operations pursuant to this section, and any audits or other reports prepared by the State Auditor, shall be public records.
The receipt, use or expenditure of State funds by a private person, corporation, organization, and institution shall not, in and of itself, make or constitute such person, corporation, organization, or institution a State agency."

Requested by:   Senator Martin of Pitt
––-STATE MONEY RECIPIENTS/CONFLICT OF INTEREST POLICY
Sec. 13.  Each private, nonprofit entity eligible to receive State funds, either by General Assembly appropriation, or by grant, loan, or other allocation from a State agency, before funds may be disbursed to the entity, shall file with the disbursing agency a notarized copy of that entity's policy addressing conflicts of interest that may arise involving the entity's management employees and the members of its board of directors or other governing body.  The policy shall address situations where any of these individuals may directly or indirectly benefit, except as the entity's employees or members of the board or other governing body, from the entity's disbursing of State funds, and shall include actions to be taken by the entity or the individual, or both, to avoid conflicts of interest and the appearance of impropriety.

PART VI.––-STATE BOARD OF ELECTIONS

Requested by:   Senator Martin of Guilford
––-CHANGE THE DATE OF THE PRESIDENTIAL PRIMARY TO THE DATE OF THE REGULAR STATEWIDE PRIMARY, AND ELIMINATE REIMBURSEMENT TO THE COUNTIES OF THE EXPENSE OF HOLDING A SEPARATE PRIMARY
Sec. 14.  (a) G.S. 163-213.2 reads as rewritten:
"§ 163-213.2. Primary to be held; date; qualifications and registration of voters.
On the Tuesday after the first Monday in May, 1992, and every four years thereafter, the voters of this State shall be given an opportunity to express their preference for the person to be the presidential candidate of their political party.
Any person otherwise qualified who will become qualified by age to vote in the general election held in the same year of the presidential preference primary shall be entitled to register and vote in the presidential preference primary.  Such persons may register not earlier than 60 days nor later than the 21st day prior to the said primary.  In addition, persons who will become qualified by age to register and vote in the general election for which the primary is held, who do not register during the special period may register to vote after such period as if they were qualified on the basis of age, but until they are qualified by age to vote, they may vote only in primary elections."
(b)	G.S. 163-213.3 reads as rewritten:
"§ 163-213.3. Conduct of election.
The presidential preference primary election shall be conducted and canvassed by the same authority and in the manner provided by law for the conduct and canvassing of the primary election for the office of Governor and all other offices enumerated in G.S. 163-187 and under the same provisions stipulated in G.S. 163-188. The State Board of Elections shall have authority to promulgate reasonable rules and regulations, not inconsistent with provisions contained herein, pursuant to the administration of this Article."
(c)	G.S. 163-213.4 reads as rewritten:
"§ 163-213.4. Nomination by State Board of Elections.
The State Board of Elections shall convene in Raleigh on the first Tuesday in February preceding the presidential preference primary election. At the meeting required by this section, the State Board of Elections shall nominate as presidential primary candidates all candidates affiliated with a political party, recognized pursuant to the provisions of Article 9 of Chapter 163 of the General Statutes, who have become eligible to receive payments from the Presidential Primary Matching Payment Account, as provided in section 9033 of the U.S. Internal Revenue Code of 1954, as amended. Immediately upon completion of these requirements, the Board shall release to the news media all such nominees selected. Provided, however, nothing shall prohibit the partial selection of nominees prior to the meeting required by this section, if all provisions herein have been complied with."
(d)	G.S. 163-213.11 is repealed.

PART VII.––-OFFICE OF STATE AUDITOR

Requested by:   Senator Martin of Guilford
––-DEPARTMENT OF REVENUE PERFORMANCE AUDIT
Sec. 15.  The State Auditor shall conduct an operations performance audit of the Department of Revenue with particular attention to auditing the efficiency of information systems and the effectiveness of tax collection systems.  The State Auditor shall report the results of the audit to the General Assembly on or before May 1, 1992.

PART VIII.––-DEPARTMENT OF ADMINISTRATION

Requested by:  Senator Martin of Guilford
––-BOARD OF SCIENCE AND TECHNOLOGY LIMITATION
Sec. 16.  All funds appropriated in the 1991-92 fiscal year and the 1992-93 fiscal year for research grants for the Board of Science and Technology shall be used only for research grants and shall not be transferred to any other objects of expenditure.

Requested by:   Senator Martin of Guilford
––-OFFICE OF STATE PERSONNEL DECENTRALIZATION
Sec. 17.  (a) Effective January 1, 1993, the Office of State Personnel shall have decentralized the classification and salary administration functions of all State departments with more than 500 permanent full-time employees.
The Office of State Personnel shall report annually to the General Assembly by December 1 of each year, beginning on December 1, 1991, on its progress towards this decentralization.
(b) The Office of State Personnel shall present its plan for decentralization of the classification and salary administration functions to the State Personnel Study Commission or its successor.  The State Personnel Study Commission shall consider those statutory changes as may facilitate decentralization and report its recommendations to the General Assembly by April 1, 1992.

Requested by:   Senator Martin of Guilford
––-COUNCIL OF GOVERNMENT FUNDS
Sec. 18.  (a)	Of the funds appropriated in this act to the Department of Administration, $864,270 for 1991-92 fiscal year and $864,270 for 1992-93 fiscal year shall only be used as provided by this section.  Each regional council of government or lead regional organization is allocated up to $48,015 each fiscal year, with the actual amount calculated as provided in subsection (b) of this section.
(b)	The funds shall be allocated as follows:  A share of the maximum $48,015 each fiscal year shall be allocated to each county and smaller city based on the most recent annual estimate of the Office of State Budget and Management of the population of that county (less the population of any larger city within that county) or smaller city, divided by the sum of the total population of the region (less the population of larger cities within that region) and the total population of the region living in smaller cities.  Those funds shall be paid to the regional council of government for the region in which that city or county is located upon receipt by the Department of Administration of a resolution of the governing board of the county or city requesting release of the funds.  If any city or county does not so request payment of funds by June 30 of a State fiscal year, that share of the allocation for that fiscal year shall revert to the General Fund.
(c)	A regional council of government may use funds appropriated by this section only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, and other activities as deemed appropriate by the member governments.
(d)	Funds appropriated by this section may not be used for payment of dues or assessments by the member governments, and may not supplant funds appropriated by the member governments.
(e)  As used in this section "Larger City”means an incorporated city with a population of 50,000 or over.  "Smaller City”means any other incorporated city.

Requested by:  Senator Martin of Guilford
––-ALLOCATION OF RAPE CRISIS CENTER FUNDS
Sec. 19.  All funds for the Rape Crisis Centers appropriated to the Department of Administration, Council of the Status of Women, for the 1991-92 fiscal year and the 1992-93 fiscal year shall be available to Rape Crisis Centers providing direct services to victims of sexual assault and rape prevention services.  Funds shall be awarded according to criteria established by the Department of Administration.  In reviewing grant applications, the Department shall consider the impact of discontinued federal funding on those centers that received funding through Section 41 of Chapter 1086 of the 1987 Session Laws, Regular Session 1988.  Grants shall be awarded by September 1 each fiscal year and the funds disbursed on a quarterly basis.

Requested by:   Senator Martin of Guilford
––-DOMESTIC VIOLENCE CENTER FUNDS
Sec. 20.  The funds appropriated to the Department of Administration, Council on the Status of Women, for fiscal years 1991-92 and 1992-93 for domestic violence centers, shall be allocated equally among all of the 61 domestic violence centers in operation on July 1, 1989, that offered services including a hotline, transportation services, community education programs, daytime services, and call forwarding during the night.  For the 1991-92 fiscal year and for the 1992-93 fiscal year, each grant shall be $17,100.  Grants shall be awarded based on criteria established by the Department of Administration and disbursed on a quarterly basis.  The North Carolina Coalition Against Domestic Violence, Incorporated, is eligible for a grant of $10,000 under this section.

Requested by:  Senator Martin of Guilford
––-APPALACHIAN REGIONAL FUNDS SUBGRANTS
Sec. 21.  Of the federal funds received by the Department of Administration for the fiscal biennium 1991-93 under the Appalachian Regional Commission Consolidated Technical Assistance Grant, the Department shall subgrant no less than fifty percent (50%) to eligible applicants whose service area or jurisdiction is wholly located within counties of the Appalachian Region.

PART IX.––-DEPARTMENT OF STATE TREASURER

Requested by:   Senator Martin of Guilford
––-LOCAL GOVERNMENTS FUND COST OF LOCAL GOVERNMENT COMMISSION
Sec. 22.  G.S. 105-213 reads as rewritten:
"§ 105-213.  Appropriation to counties and municipalities; use of appropriation.
(a)	There is annually appropriated from the General Fund to counties and municipalities the amount of revenue collected under this Article during the preceding fiscal year, plus an amount equal to forty percent (40%) of the tax collected on accounts receivable during the preceding fiscal year and less an amount equal to the costs during the preceding fiscal year of:
(1)	Refunds made during the fiscal year of taxes levied under this Article.
(2)	The Department of Revenue to collect and administer the taxes levied under this Article.
(3)	The Department of Revenue in performing the duties imposed by Article 15 of this Chapter.
(4)	The Property Tax Commission.
(5)	The Institute of Government in operating a training program in property tax appraisal and assessment.
(6)	The personnel and operations provided by the Department of State Treasurer for the Local Government Commission.
The appropriation shall be distributed by August 30 of each year.  The appropriation shall be included in the Current Operations Appropriations Act.
To distribute the appropriation, the Secretary of Revenue shall keep a separate record by counties of the taxes collected under this Article and shall certify to the State Controller and to the State Treasurer the amount to be distributed to each county and municipality in the State.  The State Controller shall then issue a warrant on the State Treasurer to each county and municipality in the amount certified.
The Secretary shall allocate the amount appropriated under this Article to the counties according to the county in which the taxes were collected.  The Secretary shall then increase the amount allocable to each county by a sum equal to forty percent (40%) of the amount of tax on accounts receivable allocated to the county on the basis of collections.  The amounts so allocated to each county shall in turn be divided between the county and the municipalities in the county in proportion to the total amount of ad valorem taxes levied by each during the fiscal year preceding the distribution.  For the purpose of computing the distribution of the intangibles tax to any county and the municipalities located in the county for any year with respect to which the property valuation of a public service company is the subject of an appeal pursuant to the provisions of the Machinery Act, or to applicable provisions of federal law, and the Department of Revenue is restrained by operation of law or by a court of competent jurisdiction from certifying such valuation to the county and municipalities therein, the Department shall use the last property valuation of such public service company which has been so certified in order to determine the ad valorem tax levies applicable to such public service company in the county and the municipalities therein.
The chairman of each board of county commissioners and the mayor of each municipality shall report to the Secretary of Revenue information requested by the Secretary to enable the Secretary to distribute the amount appropriated by this section.  If a county or municipality fails to make a requested report within the time allowed, the Secretary may disregard the county or municipality in distributing the amount appropriated by this section.  The amount distributed to each county and municipality shall be used by the county or municipality in proportion to property tax levies made by it for the various funds and activities of the county or municipality, unless the county or municipality has pledged the amount to be distributed to it under this section in payment of a loan agreement with the North Carolina Solid Waste Management Capital Projects Financing Agency.  A county or municipality that has pledged amounts distributed under this section in payment of a loan agreement with the Agency may apply the amount the loan agreement requires.
(b)	For purposes of this section, the term ‘municipality' includes any urban service district defined by the governing board of a consolidated city-county, and the amounts due thereby shall be distributed to the government of the consolidated city-county."

PART X.––-PUBLIC SCHOOLS

Requested by:   Senator Ward
––-CONSOLIDATE SCHOOL ADMINISTRATOR ALLOTMENTS
Sec. 23.  The State Board of Education shall consolidate the allotment of assistant and associate superintendents and supervisors and shall convert the allotment from a position allotment to a dollar allotment.

Requested by:   Senator Ward
––-DRIVER TRAINING PROGRAM
Sec. 24. (a)	G.S. 20-88.1 reads as rewritten:
"§ 20-88.1. Driver education.
(a)	In accordance with criteria and standards approved by the State Board of Education, the State Superintendent of Public Instruction shall organize and administer a program of driver education to be offered at the public high schools of this State for all physically and mentally qualified persons who (i) are older than 14 years and six months, (ii) are approved by the principal of the school, pursuant to rules adopted by the State Board of Education, (iii) are enrolled in a public or private high school within the State, and (iv) have not previously enrolled in the program. The State Board of Education shall use for such purpose all funds appropriated to it for said purpose, and may use all other funds that become available for its use for said purpose. The driver education program established pursuant to this section shall include instructions on the rights and privileges of the handicapped and the signs and symbols used to assist the handicapped relative to motor vehicles, including the ‘international symbol of accessibility' and other symbols and devices as provided in Article 2A of this Chapter. In addition, this program shall include at least six hours of instruction on the offense of driving while impaired and related subjects.
(b)	The State Board of Education shall adopt a salary range for driver education instructors who are public school employees and who do not hold teacher certificates.
Driver education instructors who are public school employees and who hold teacher certificates shall be paid on the teacher salary schedule.  The workday for driver education instructors who hold teacher certificates shall be the same as for other teachers who hold teacher certificates. 
(b1)	The State Board of Education shall adopt rules to permit local boards of education to enter contracts with public or private entities to provide a program of driver education at public high schools.  All driver education instructors shall meet the requirements established by the State Board of Education; provided, however, driver education instructors shall not be required to hold teacher certificates.
(c)	All expenses incurred by the State in carrying out the provisions of this section shall be paid out of the Highway Fund."
(b) G.S. 115C-215 reads as rewritten:
"§ 115C-215. Instruction in driver training and safety education.
There shall be organized and administered under the general supervision of the Superintendent of Public Instruction a program of driver training and safety education in the public schools of this State, said courses to be noncredit courses taught by instructors who meet the requirements established by the State Board of Education.  Instructors shall not be required to hold teacher certificates."
(c) G.S. 115C-216 reads as rewritten:
"§ 115C-216. Boards of education required to provide courses in operation of motor vehicles.
(a)	Course of Training and Instruction Required in Public High Schools. – The State Board of Education and local boards of education are required to provide as a part of the program of the public high schools in this State a course of training and instruction in the operation of motor vehicles, in accordance with G.S. 20-88.1.
(b)	Inclusion of Expense in Budget. – The local boards of education of every local school administrative unit are hereby authorized to include as an item of instructional service and as a part of the current expense fund of the budget of the several high schools under their supervision, the expense necessary to install and maintain such a course of training and instructing eligible persons in such schools in the operation of motor vehicles.
			”	."
(d)	The State Board of Education shall convert the allotments of funds for months of employment for driver education instructors and for loan car fees to dollar allotments.

Requested by:   Senator Ward
––-COMMUNITY SCHOOLS FUNDS
Sec. 25. The State Board of Education shall allocate community schools funds on a per county school administrative unit basis.

Requested by:   Senator Ward
––-DROPOUT PREVENTION/IN-SCHOOL SUSPENSION
Sec. 26.  Of the funds appropriated to the Department of Public Education for aid to local school administrative units for the Dropout Prevention/In-School Suspension Program, the sum of $200,000 for each fiscal year of the 1991-93 fiscal biennium may be used to fund eight pilot public/private educational compacts to bring together on an ongoing basis representatives from public education, community colleges, higher education, and business and industry to determine how to improve attendance, prevent dropping out of school, increase academic performance, and increase participation in higher education and the work force by at-risk students.  The funds may also be used to fund eight parental involvement pilot programs, and to provide for operating costs, workshops, and committee meetings for the State Department of Public Instruction's dropout prevention staff.
The State Board of Education may adopt rules governing the use of these funds.  These funds are to be part of the continuation budget in the next fiscal biennium.

Requested by:  Senator Ward
––-DROPOUT PREVENTION COORDINATORS
Sec. 27.  Of the funds appropriated to the Department of Public Education for aid to local school administrative units for dropout prevention, the State Board of Education shall allocate to the Department of Public Instruction up to $225,000 for the 1991-92 fiscal year and up to $225,000 for the 1992-93 fiscal year for the three dropout prevention coordinators.  The State Superintendent shall assign the dropout prevention coordinators to designated areas within the State and shall develop job descriptions for them.  These funds are to be part of the continuation budget in the next biennium.

Requested by:  Senator Ward
––-PROJECT TEACH FUNDS
Sec. 28.  Of the funds appropriated to the Department of Public Education for the 1991-93 fiscal biennium for aid to local school administrative units, the State Board of Education shall allocate to the Department of Public Instruction $73,000 for the 1991-92 fiscal year and $73,000 for the 1992-93 fiscal year to be used to:
(1)	Maintain the Project Teach Initiative in the Robeson, Pitt, Cumberland, Warren, Halifax, Guilford, Vance, Northampton, Anson and Bertie County Schools, and the Durham, High Point, and Greensboro City Schools.
(2)	Expand the project in at least two school systems to focus on parents of students in the seventh grade so as to involve parents in the coaching and support of promising minority young people.  These funds are to be part of the continuation budget in the next fiscal biennium.

Requested by:  Senator Ward
––-ADVANCED TRAINING FOR FOREIGN LANGUAGE TEACHERS
Sec. 29.  Of the funds appropriated to the Department of Public Education for aid to local school administrative units, the State Board of Education may allocate to the Department of Public Instruction $300,000 each year of the 1991-93 biennium for two positions, support expenses, and workshops to provide intensive advanced training for teachers who teach foreign languages.

Requested by:   Senator Ward
––-FUNDING FOR CITY SCHOOL SYSTEMS
Sec. 30.  (a) Funds appropriated to the Department of Public Education in Section 3 of this act reflect a permanent reduction in the State funding for city school administrative units.  State funds shall not be used for the positions of (i) superintendents, (ii) associate and assistant superintendents, (iii) directors, supervisors, and coordinators, and (iv) maintenance supervisors, for city school administrative units.  The county or counties in which any city school administrative unit is located shall be responsible for the funding of these positions for the city unit.  The county may use any funds lawfully available, whether from county funds or funds from any supplemental school tax, to fund these positions.
(b) Notwithstanding subsection (a) of this section, the allotments of State funds for the positions of (i) superintendents, (ii) associate and assistant superintendents, (iii) directors, supervisors, and coordinators, and (iv) maintenance supervisors shall not be reduced for a particular city school administrative unit for two full fiscal years, retroactive to the first day of the fiscal year in which, prior to December 31:
(1)	In the case of any county in which there is more than one local school administrative unit, but none of them is located in more than one county, the State Board of Education approves in accordance with G.S. 115C-67 a plan of consolidation and merger of all local school administrative units located in that county, if:
a.	In the case a referendum is required on the plan, it is approved by the voters; and
b.	The effective date of the consolidation and merger is on or before the first day of the next school year;
(1a)	In the case of a county in which there is more than one city school administrative unit, the State Board of Education approves in accordance with G.S. 115C-67 a plan of consolidation and merger of one city school administrative unit with the county unit, if the effective date of that merger is on or before July 1, 1991;
(2)	In the case of any pair of counties in which there are more than two local school administrative units and one of them is located partly in each county, the State Board of Education approves in accordance with G.S. 115C-67 or G.S. 115C-68 a plan of consolidation and merger of all local school administrative units located in those counties, if:
a.	The result is there will be not more than two local school administrative units in the total of the two counties;
b.	In the case a referendum is required on the plan, it is approved by the voters; and
c.	The effective date of the consolidation and merger is on or before the first day of the next school year;
(3)	In the case of any county in which there is more than one local school administrative unit, but none of them is located in more than one county, a plan of consolidation and merger under a local act of all the local school administrative units located in that county is approved as provided under the act and the effective date of the consolidation and merger is on or before the first day of the next school year;
(4)	In the case of any pair of counties in which there are more than two local school administrative units and one of them is located partly in each county, a plan of consolidation and merger under a local act or local acts is approved as provided under the act or acts where:
a.	The result is there will be not more than two local school administrative units in the total of the two counties; and
b.	The effective date of the consolidation and merger is on or before the first day of the next school year;
(5)	In the case of any county in which there is more than one local school administrative unit, but none of them is located in more than one county, the board of county commissioners approves in accordance with G.S. 115C-68.1 a plan of consolidation and merger of all local school administrative units located in the county, if the effective date of the consolidation and merger is on or before the first day of the next school year;
(6)	In the case of any pair of counties in which there are more than two local school administrative units and one of them is located partly in each county, the boards of county commissioners approve in accordance with G.S. 115C-68.1 a plan of consolidation and merger of local school administrative units located in whole or in part within the two counties, such that the resulting total number in the two counties is not more than two, if the effective date of the consolidation and merger is on or before the first day of the next school year;
(7)	In the case of any county in which there is more than one local school administrative unit, but none of them is located in more than one county, the local board or boards of education of all city school administrative units located in that county notify the State Board of Education that they are dissolving themselves in accordance with G.S. 115C-68.2, if the effective date of the resulting consolidation and merger is on or before the first day of the next school year; and
(8)	In the case of any pair of counties in which there are more than two local school administrative units and one of them is located partly in each county, the local board or boards of education of all city school administrative units located in those counties notify the State Board of Education that they are dissolving themselves in accordance with G.S. 115C-68.2, if the effective date of the resulting consolidation and merger is on or before the first day of the next school year.
(c)	Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-68.1.  Merger of units by the board of county commissioners.
(a)	The board of county commissioners of a county in which two or more local school administrative units are located, but all are located wholly within the county, may adopt a plan for the consolidation and merger of the units into a single countywide unit.
The board of county commissioners shall forward a copy of the plan it adopts to the boards of education of all local school administrative units located within the county, immediately upon adoption.
(b)	The boards of county commissioners of two counties in which one of the local school administrative units is located in both counties may jointly adopt plans for each of their counties, including a plan of consolidation and merger for such unit which is located in more than one county.  The results of such consolidation and merger shall be that there is only one countywide local school administrative unit in each county, or that the entirety of the unit located within two counties is merged and consolidated with the county unit of one of the two counties.  Such plans shall also merge and consolidate any other city school administrative unit located wholly within one of the two counties.  Within the two county area, all the plans shall take effect on the same day.
The boards of county commissioners of the two counties shall forward copies of the plans they adopt to the boards of education of all local school administrative units located within the counties, immediately upon adoption.
(c)	The plans under this section shall be prepared and approved in accordance with G.S. 115C-67 or G.S. 115C-68, as applicable, except that the county and city boards of education shall not participate by preparing, entering into, submitting, or agreeing to a plan and except that no supplemental school tax shall be continued under the plan.
(d)	If the State Board of Education fails to approve a plan submitted to it under this section, such failure to approve does not preclude the approval of the plan by the General Assembly by local act."
(d) Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-68.2. Merger of units by the local boards of education.
If all of the city boards of education in a county notify the State Board of Education that they are dissolving themselves, the State Board of Education shall adopt a plan of consolidation and merger of all local school administrative units in the county into a single countywide unit; provided, however, if one or more of the local school administrative units is located in more than one county, all of the city school administrative units in both counties shall notify the State Board of Education, the State Board shall adopt a plan that results in a single countywide unit for each county, and the plans shall take effect on the same day.  The plans shall be prepared and approved in accordance with G.S. 115C-67 and G.S. 115C-68, as applicable, except that the county and city boards of education and the boards of commissioners shall not participate by preparing, entering into, submitting, or agreeing to a plan and except that no supplemental school tax shall be continued under the plan."
(e)  G.S. 115C-430 reads as rewritten:
"§ 115C-430. Apportionment of county appropriations among local school administrative units.
If there is more than one local school administrative unit in a county, all appropriations by the county to the local current expense funds of the units, except appropriations funded by supplemental taxes levied less than countywide pursuant to a local act or G.S. 115C-501 to 115C-511, and except appropriations for superintendents, associate and assistant superintendents, directors, supervisors, and coordinators, and maintenance supervisors, for city school administrative units, must be apportioned according to the membership of each unit. County appropriations are properly apportioned when the dollar amount obtained by dividing the amount so appropriated to each unit by the total membership of the unit is the same for each unit. The total membership of the local school administrative unit is the unit's average daily membership for the budget year to be determined by and certified to the unit and the board of county commissioners by the State Board of Education."
(f)  No liability for any supplemental school tax levied under local act or G.S. 115C-501 to G.S. 115C-511 that attached prior to the date on which a levy is discontinued pursuant to a plan for merger for local school administrative units under G.S. 115C-68.1 or G.S. 115C-68.2 is discharged as a result of the repeal, and no right to a refund of tax that accrued prior to the effective date on which a levy is discontinued may be denied as a result of the repeal.

Requested by:   Senator Ward
––-ALLOCATION OF FUNDS FOR MERGED CAREER LADDER PILOT PROJECTS
Sec. 31.  Any career ladder pilot project in a school unit that has resulted from a merger of school units, subsequent to July 1, 1991, may be modified by the local school board, upon the recommendation of the State Superintendent of Public Instruction and with the approval of the State Board of Education.  For the fiscal year of the merger through the 1993-94 fiscal year, the merged unit shall receive (i) the amount of funds that was previously allocated to the particular pilot project by the State Board of Education and (ii) the amount of funds it is entitled to receive pursuant to G.S. 115C-238.4(c)(1), for the portion of the merged unit that did not participate in the pilot project.

Requested by: Senators Ward, Johnson
––-ADDITIONAL FUNDS FOR TEACHERS
Sec. 32.  If additional funds become available for the 1991-93 fiscal biennium, the General Assembly may use these funds to restore funds cut from the base budget for teachers for the 1991-93 fiscal biennium.

Requested by: Senators Ward, Martin of Guilford
––-ADDITIONAL FUNDS FOR COUNSELORS
Sec. 33.  If additional funds become available for the 1991-93 fiscal biennium, the General Assembly may use these funds to restore funds cut from the base budget for counselors for the 1991-93 fiscal biennium.

PART XI.––-COMMUNITY COLLEGES

Requested by:  Senator Ward
––-MAINTENANCE OF PLANT
Sec. 34. (a) Notwithstanding any provision of law to the contrary, any community college that has an out-of-county student head count served on the main campus of the college in excess of fifty percent (50%) of the total student head count as defined by the State Board of Community Colleges shall be provided funds for the purpose of "operations of plant".  These funds shall not exceed eighty-five percent (85%) of the funds allocated to these colleges during the 1990-91 fiscal year for this purpose.
(b) This section becomes effective July 1, 1992.

Requested by:   Senator Ward
––-BUDGET FLEXIBILITY
Sec. 35.  The State Board of Community Colleges shall establish budget guidelines that grant to the individual institutions maximum budget flexibility to accomplish the budget reductions assigned to them by the State Board for the 1991-93 fiscal biennium.  These guidelines shall allow transfers of all operating funds, except from literacy funds and the Human Resources Development Program, between line items and program areas.  These guidelines shall also require that, to the extent possible, reductions shall be taken in administrative costs rather than from instructional costs.
The State Board is not required to make budget reduction allocations on a pro rata basis and may specify various programs for reduction.
The State Board shall require each college to submit a plan assuring a balanced educational program that meets statewide priorities.
The State Board shall report to the Regular 1992 Session of the 1991 General Assembly on these guidelines and on the implementation of these guidelines by each institution.

Requested by:   Senator Ward
––-OPERATING APPROPRIATIONS/NOT USED FOR RECREATION EXTENSION
Sec. 36.  Funds appropriated in this act to the Department of Community Colleges as operating expenses for allocation to the institutions comprising the Community College System shall not be used to support recreation extension courses.  The financing of these courses by any institution shall be on a self-supporting basis, and membership hours produced from these activities shall not be counted when computing full-time equivalent students for use in budget-funding formulas at the State level.

Requested by:   Senator Ward
––-FULL-TIME EQUIVALENT TEACHING POSITIONS/COMMUNITY COLLEGES
Sec. 37.  For the purpose of determining the community college system-wide number of full-time equivalent (FTE) teaching positions each year, the total curriculum full-time equivalent student enrollment shall be divided by 21.63 for the 1991-92 fiscal year and by 21.44 for the 1992-93 fiscal year; the occupational extension full-time equivalent student enrollment shall be divided by 23 for the 1991-92 fiscal year and by 23 for the 1992-93 fiscal year.

Requested by:   Senator Ward
––-TUITION/PUBLIC SCHOOL STUDENTS TAKING COMMUNITY COLLEGE COURSES
Sec. 38.  G.S. 115D-5(b) reads as rewritten:
"(b)	In order to make instruction as accessible as possible to all citizens, the teaching of curricular courses and of noncurricular extension courses at convenient locations away from institution campuses as well as on campuses is authorized and shall be encouraged.  A pro rata portion of the established regular tuition rate charged a full-time student shall be charged a part-time student taking any curriculum course.  In lieu of any tuition charge, the State Board of Community Colleges shall establish a uniform registration fee, or a schedule of uniform registration fees, to be charged students enrolling in extension courses for which instruction is financed primarily from State funds; provided, however, that the State Board of Community Colleges may provide by general and uniform regulations for waiver of tuition and registration fees for persons not enrolled in elementary or secondary schools taking courses leading to a high school diploma or equivalent certificate, for training courses for volunteer firemen, local fire department personnel, volunteer rescue and lifesaving department personnel, local rescue and lifesaving department personnel, Radio Emergency Associated Citizens Team (REACT) members when the REACT team is under contract to a county as an emergency response agency, local law-enforcement officers, patients in State alcoholic rehabilitation centers, all full-time custodial employees of the Department of Correction, employees of the Department of Correction's Division of Adult Probation and Parole and employees of the Division of Youth Services of the Department of Human Resources required to be certified pursuant to Chapter 17C of the General Statutes and the rules of the Criminal Justice and Training Standards Commission, trainees enrolled in courses conducted under the New and Expanding Industry Program, clients of sheltered workshops, clients of adult developmental activity programs, students in Human Resources Development Programs, juveniles of any age committed to the Division of Youth Services of the Department of Human Resources by a court of competent jurisdiction, and prison inmates.  Provided further, tuition shall be waived for senior citizens attending institutions operating pursuant to this Chapter as set forth in Chapter 115B of the General Statutes, Tuition Waiver for Senior Citizens.  Provided further, tuition shall also be waived for all courses taken by high school students at community colleges in accordance with G.S. 115D-20(4) and this section."

Requested by:   Senator Ward
––-BOOKS AND EQUIPMENT APPROPRIATIONS/REVERT AFTER ONE YEAR
Sec. 39.  Appropriations to the Department of Community Colleges for equipment and library books are made for each year of the fiscal biennium.  All unencumbered appropriations shall revert to the General Fund 12 months after the close of each fiscal year for which they were appropriated.  Encumbered balances outstanding at the end of each period shall be handled in accordance with existing State Budget policies.  The Department shall be able to identify to the Office of State Budget and Management which appropriations will revert at the end of the 12 months after the close of each fiscal year.

Requested by:   Senator Ward
––-" TECH PREP”IMPLEMENTATION
Sec. 40.  Of the funds available to the Department of Public Education for vocational education, $50,000 for the 1991-92 fiscal year and $50,000 for the 1992-93 fiscal year, shall be allocated to the North Carolina Tech Prep Leadership Development Center at Richmond Community College for assistance to local education agencies and community colleges in planning and implementing "Tech Prep”across the State.  The Department of Community Colleges shall allocate $50,000 each year from funds available to it for the 1991-92 fiscal year and for the 1992-93 fiscal year for the North Carolina "Tech Prep”Leadership Development Center at Richmond Community College.

Requested by:   Senator Ward
––-ASSISTANCE TO HOSPITAL NURSING/FUND DISTRIBUTION
Sec. 41.  Funds appropriated in this act to the Department of Community Colleges to provide financial assistance to hospital programs of nursing education leading to diplomas in nursing that are fully accredited by the North Carolina Board of Nursing and operated under the authority of a public or nonprofit hospital licensed by the North Carolina Medical Care Commission shall be distributed, upon application for financial assistance, for each full-time student duly enrolled in the program as of December 1 of the preceding year and on condition that accreditation is maintained.  The amount per student shall not exceed $850. 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.

PART XII.––-COLLEGES AND UNIVERSITIES

Requested by:   Senator Ward
––-TEACHING HOSPITAL REIMBURSEMENT
Sec. 42.  Reimbursement to Pitt County Memorial Hospital for uncompensated care provided to non-Pitt County residents admitted by East Carolina Medical School faculty shall be limited to the unreimbursed portion of actual costs as determined in the Medicare Cost Report. 

Requested by:  Senator Ward
––-SMALL BUSINESS PROGRAMS
Sec. 43.  The Board of Governors of The University of North Carolina shall make whatever changes are necessary in the administrative structures of the economic development programs in The University of North Carolina to ensure that adequate State appropriations from these programs can be used to match federal funding for small business development programs.
The Board of Governors of The University of North Carolina and the State Board of Community Colleges shall develop, to the extent necessary, a consolidated administrative structure for their Small Business Assistance Programs to increase the State funds available to match federal funding for small business development programs.

Requested by:   Senator Ward
––-AID TO PRIVATE COLLEGES/LEGISLATIVE TUITION GRANT LIMITATIONS
Sec. 44.  (a)	The amount of a tuition grant awarded to a student enrolled in a degree program at a site away from the main campus of the approved private institution, as defined in G.S. 116-22(1), may be no more than the result of the ratio of the cost per credit hour for off-campus instruction at that site to the cost per credit hour for regular, full-time on-campus instruction, multiplied by the maximum grant award, or the maximum grant award allowable under Section 45(b) of this act, whichever is less.
(b)	No Legislative Tuition Grant funds may be expended for a program at an off-campus site of a private institution, as defined in G.S. 116-22(1), established after May 15, 1987, unless (i) the private institution offering the program has previously notified and secured agreement from other private institutions operating degree programs in the county in which the off-campus program is located or operating in the counties adjacent to that county or (ii) the degree program is neither available nor planned in the county with the off-campus site or in the counties adjacent to that county.
An "off-campus program”is any program offered for degree credit away from the institution's main, permanent campus.
(c)	Any member of the armed services as defined in G.S. 116-143.3(a), abiding in this State incident to active military duty, who does not qualify as a resident for tuition purposes as defined under G.S. 116-143.1, is eligible for a Legislative Tuition Grant pursuant to this section if the member is enrolled as a full-time student.  The member's Legislative Tuition Grant may not exceed the cost of tuition less any tuition assistance paid by the member's employer.

Requested by:  Senator Ward
––-AID TO PRIVATE COLLEGES/PROCEDURE
Sec. 45. (a)	Funds appropriated in this act to the Board of Governors of The University of North Carolina for aid to private colleges shall be disbursed in accordance with the provisions of G.S. 116-19, 116-21, and 116-22.  These funds shall provide up to $450.00 per full-time equivalent North Carolina undergraduate student enrolled at a private institution as of October 1 each year.
These funds shall be placed in a separate, identifiable account in each eligible institution's budget or chart of accounts.  All funds in this account shall be provided as scholarship funds for needy North Carolina students during the fiscal year.  Each student awarded a scholarship from this account shall be notified of the source of the funds and of the amount of the award.  Funds not utilized under G.S. 116-19 shall be made available for the tuition grant program as defined in subsection (b) of this section.
(b)	In addition to any funds appropriated pursuant to G.S. 116-19 and in addition to all other financial assistance made available to private educational institutions located within the State, or to students attending these institutions, there is granted to each full-time North Carolina undergraduate student attending an approved institution as defined in G.S. 116-22, a sum, not to exceed $1,150 per academic year, which shall be distributed to the student as hereinafter provided.
The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section.  The State Education Assistance Authority may not approve any grant until it receives proper certification from an approved institution that the student applying for the grant is an eligible student.  Upon receipt of the certification, the State Education Assistance Authority shall remit at such times as it shall prescribe the grant to the approved institution on behalf, and to the credit, of the student.
In the event a student on whose behalf a grant has been paid is not enrolled and carrying a minimum academic load as of October 1 of the first academic term or on the tenth classroom day following the beginning of the second school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority.  Each approved institution shall be subject to examination by the State Auditor for the purpose of determining whether the institution has properly certified eligibility and enrollment of students and credited grants paid on the behalf of the students.
In the event there are not sufficient funds to provide each eligible student with a full grant:
(1)	The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2)	Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
Any remaining funds shall revert to the General Fund.
(c)	Expenditures made pursuant to this section may be used only for secular educational purposes at nonprofit institutions of higher learning.

Requested by:  Senator Ward
––-WAKE FOREST AND DUKE MEDICAL SCHOOL ASSISTANCE/FUNDING FORMULAE
Sec. 46.  Funds appropriated in this act to the Board of Governors of The University of North Carolina for continuation of financial assistance to the medical schools of Duke University and Wake Forest University shall be disbursed on certifications of the respective schools of medicine that show the number of North Carolina residents as first-year, second-year, third-year, and fourth-year students in the medical school as of November 1, 1991, and November 1, 1992.  Disbursement to Wake Forest University shall be made in the amount of $8,000 for each medical student who is a North Carolina resident, $1,000 of which shall be placed by the school in a fund to be used to provide financial aid to needy North Carolina students who are enrolled in the medical school.  The maximum aid given to any student from this fund in a given year may not exceed the amount of the difference in tuition and academic fees charged by the school and those charged at the School of Medicine at the University of North Carolina at Chapel Hill.
Disbursement to Duke University shall be made in the amount of $5,000 for each medical student who is a North Carolina resident, $500.00 of which shall be placed by the school in a fund to be used to provide student financial aid to financially needy North Carolina students who are enrolled in the medical school.  No individual student may be awarded assistance from this fund in excess of $2,000 each year.  In addition to this basic disbursement for each year of the biennium, a disbursement of $1,000 shall be made for each medical student who is a North Carolina resident in the first-year, second-year, third-year, and fourth-year classes to the extent that enrollment of each of those classes exceeds 30 North Carolina students.
The Board of Governors shall establish the criteria for determining the eligibility for financial aid of needy North Carolina students who are enrolled in the medical schools and shall review the grants or awards to eligible students.  The Board of Governors shall adopt rules for determining which students are residents of North Carolina for the purposes of these programs.  The Board of Governors shall also make any regulations as necessary to ensure that these funds are used directly for instruction in the medical programs of the schools and not for religious or other nonpublic purposes.  The Board of Governors shall encourage the two schools to orient students towards personal health care in North Carolina giving special emphasis to family and community medicine.

Requested by:  Senator Ward
––-UNIVERSITY OF NORTH CAROLINA HOSPITALS AT CHAPEL HILL/NURSING
Sec. 47.   Notwithstanding the provisions of G.S. 126-4(1), G.S. 126-4(2), and Section 9 of Chapter 738 of the 1987 Session Laws, as amended by Section 100(a) of the 1987 Session Laws, and as further amended by Section 54 of Chapter 500 of the 1989 Session Laws, the Current Operations Appropriations Act of 1989, the Board of Directors of the University of North Carolina Hospitals at Chapel Hill shall establish policies and rules governing the study and implementation of competitive position classification and compensation plans for registered and licensed practical nurse positions that have been approved by the Board of Directors.  These plans shall provide for minimum, maximum, and intermediate rates of pay, and may include provisions for range revisions and shift premium pay and for salary adjustments to address internal inequities, job performance, and market conditions.  The Office of State Personnel shall review the classification and compensation plans on an annual basis, and all changes in compensation plans for these registered and licensed practical nursing positions shall be submitted to the Office of State Personnel upon implementation.

Requested by:   Senators Ward, Conder 
––-COMMUNITY SERVICES REDUCTIONS LIMITATION/SMALL BUSINESS AND TECHNOLOGY DEVELOPMENT CENTERS
Sec. 48.   None of the reductions made by this act in the community services budgets for economic development activities of The University of North Carolina shall be taken in the Small Business and Technology Development Centers programs.

Requested by:   Senators Ward, Conder 
––-COMMUNITY SERVICES REDUCTIONS LIMITATION/INSTITUTE OF GOVERNMENT PROGRAMS
Sec. 49.   None of the reductions made by this act in the community services budgets of The University of North Carolina shall be taken in the programs of the Institute of Government at Chapel Hill.

PART XIII.––-DEPARTMENT OF TRANSPORTATION

Requested by:   Senator Goldston
––-MOWING ROAD SHOULDERS
Sec. 50.  The Board of Transportation shall review its policy of requiring private contractors to mow the State highway system.  The Board shall look at the comparative costs between mowing with State forces versus private contractors.  The Board shall explore the costs of returning mowing work, especially of secondary roads, to the 14 Highway Divisions.  This study shall also consider the savings derived from reducing the width of the shoulder to be mowed.  A report of the Board's findings shall be submitted to the House Appropriations Subcommittee on Transportation, the Senate Appropriations Committee on Natural and Economic Resources, and to the Fiscal Research Division 30 days prior to the scheduled convening date of the 1992 Session of the General Assembly.

Requested by:   Senator Goldston
––-DOT PERSONNEL ACTIONS REPORTED
Sec. 51.  The Department of Transportation shall submit a list of personnel actions every six months to the Joint Legislative Highway Oversight Committee and to the Fiscal Research Division.  This list shall include positions reallocated, reclassified, abolished, and created.  The report shall give the status of the Department's salary reserves and how they were used during the reporting period.

Requested by:   Senator Goldston
––-PLAN TO REDUCE LABOR VARIANCE
Sec. 52.  The Department of Transportation shall submit to the House Appropriations Subcommittee on Transportation and the Senate Appropriations Committee on Natural and Economic Resources during the 1992 Session of the General Assembly, a plan to reduce labor variance in highway planning and design from the current nineteen and two-tenths percent (19.2%) to the pre-Trust Fund 1985 level of ten and six-tenths percent (10.6%).  The Plan shall list all activities that are charged to labor variance and the reasons why the work has not been assigned to job orders.

Requested by:   Senator Goldston
––-PERFORMANCE AUDIT COMPARING COST OF ENGINEERING SERVICES BETWEEN DEPARTMENT OF TRANSPORTATION AND PRIVATE ENGINEERING FIRMS
Sec. 53.  The State Auditor shall conduct a performance audit comparing the cost, quality, and timeliness of engineering services provided by outside consultants versus Department of Transportation personnel.  This audit shall include an analysis of overhead costs, labor variance, the impact of newly hired employees on Department of Transportation efficiency and the cost of supervising consultants.  The State Auditor shall report his findings, by April 1, 1992, to the Chairmen of the Senate and House Appropriations Committees, the Chairmen of the House Appropriations Subcommittee on Transportation, and the Chairman of the Senate Appropriations Committee on Natural and Economic Resources.

Requested by:   Senator Goldston
––-REDUCTION OF HIGHWAY TRUST FUND REVENUE USED FOR ADMINISTRATIVE EXPENSES
Sec. 54.  G.S. 136-176(b) reads as rewritten:
"(b)	Funds in the Trust Fund are annually appropriated to the Department of Transportation to be allocated and used as provided in this subsection.  A sum, not to exceed four and one-half percent (4.5%) of the amount of revenue deposited in the Trust Fund under subdivisions (a)(1), (2), and (3) of this section, may be used each fiscal year by the Department for expenses to administer the Trust Fund.  The rest of the funds in the Trust Fund shall be allocated and used as follows:
(1)	Sixty-one and ninety-five hundredths percent (61.95%) to plan, design, and construct the projects of the Intrastate System described in G.S. 136-179.
(2)	Twenty-five and five hundredths percent (25.05%) to plan, design, and construct the urban loops described in G.S. 136-180.
(3)	Six and one-half percent (6.5%) to supplement the appropriation to cities for city streets under G.S. 136-181.
(4)	Six and one-half percent (6.5%) for secondary road construction as provided in G.S. 136-182."

Requested by:  Senator Goldston
––-BRANCH AGENT TRANSACTION RATE
Sec. 55.  The Division of Motor Vehicles of the Department of Transportation shall compensate a contractor with whom it has a contract under G.S. 20-63(h) at the rate of ninety-two cents (92¢) for each transaction performed in accordance with the requirements set by the Division.  A transaction is any of the following activities:
(1)	Issuance of a registration plate, a registration card, a registration renewal sticker, or a certificate of title.
(2)	Issuance of a handicapped placard or handicapped identification card.
(3)	Acceptance of an application for a personalized registration plate.
(4)	Acceptance of a surrendered registration plate, registration card, or registration renewal sticker, or acceptance of an affidavit stating why a person cannot surrender a registration plate, registration card, or registration renewal sticker.
(5)	Cancellation of a title because the vehicle has been junked.
(6)	Acceptance of an application for, or issuance of, a refund for a fee or a tax, other than the highway use tax.
(7)	Receipt of the civil penalty imposed by G.S. 20-309 for a lapse in financial responsibility or receipt of the restoration fee imposed by that statute.
(8)	Acceptance of a notice of failure to maintain financial responsibility for a motor vehicle.
(9)	Collection of the highway use tax.
Performance at the same time of any combination of the items that are listed within each subdivision or are listed within subdivisions (1) through (8) is a single transaction.  Performance of the item listed in subdivision (9) in combination with any other items listed in this section is a separate transaction.

Requested by:   Senator Goldston
––-BIDS FOR COMPUTER SERVICES
Sec. 56.  In requests for bids, requests for quotes, requests for proposals, or other procurement actions issued through the Department of Administration, Division of Purchase and Contract, or through any other State agency, for vendors to develop a strategic plan, conduct a feasibility study, or prepare a needs assessment for a computer system, information system, data communications network, data processing application, or other information technology application, there shall be a provision that reads as follows:" Eligibility for Future Requirements:  The successful offeror on this project will not be considered for an award on subsequent hardware, software, software support, and related procurements which are based on specifications or recommendations resulting from this procurement.”The Division of Purchase and Contract and the State agency or agencies involved in the procurement may delete this provision in a procurement request by jointly (i) filing a written request with the Director of the Office of State Budget for authorization to delete this provision from the procurement effort, (ii) sending a copy of this written request for authorization to the Director of the Fiscal Research Division at the time it is filed with the Office of State Budget, (iii) receiving written authorization to delete the provision from the Director of the Office of State Budget, and (iv) reporting the authorization, if it is granted, to the Director of the Fiscal Research Division and to the next meeting of the Joint Legislative Commission on Governmental Operations.

Requested by:   Senator Goldston
––-NORTH CAROLINA RAILROAD DIVIDENDS APPROPRIATED TO THE HIGHWAY FUND FOR RAILROAD PURPOSES
Sec. 57.  G.S. 136-16.6 reads as rewritten:
"§ 136-16.6.  Continuing rail appropriations.
There is annually appropriated one hundred percent (100%) of the annual dividends received in the prior fiscal year (less any amounts that are required by Section 13.18 of Chapter 792, Session Laws of 1985 to be paid for the expenses of the Railroad Negotiating Commission) by the State from its ownership of stock in the North Carolina Railroad Company and the Atlantic and North Carolina Railroad Company to the Highway Fund for use by the Department of Transportation for railroad purposes."

Requested by:   Senator Goldston
––-HIGHWAY FUND ALLOCATIONS BY CONTROLLER
Sec. 58.  The Controller of the Department of Transportation shall allocate at the beginning of each fiscal year from the various appropriations made to the Department of Transportation in this act, Titles:
State Construction
State Funds to Match Federal Highway Aid
State Maintenance
Ferry Operations,
sufficient funds to eliminate all overdrafts on State maintenance and construction projects, and these allocations may not be diverted to other purposes.

Requested by:   Senator Goldston
––-CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATIONS
Sec. 59.  The General Assembly authorizes and certifies anticipated revenues of the Highway Fund as follows:
For Fiscal Year 1993-94	$971,000,000 
For Fiscal Year 1994-95	$990,000,000.
Sec. 60.  The General Assembly authorizes and certifies anticipated revenues of the Highway Trust Fund as follows:
For Fiscal Year 1993-94	$394,900,000 
For Fiscal Year 1994-95	$402,800,000.

Requested by:   Senator Goldston
––-HIGHWAY FUND LIMITATIONS ON OVEREXPENDITURES
Sec. 61.  (a)	Overexpenditures from Section 4 of this act may be made by authorization of the Director of the Budget, Titles:
State Construction Primary Construction
State Construction Urban Construction
State Construction Access and Public Service Roads
State Funds to Match Federal Highway Aid
State Maintenance
Ferry Operations,
provided that there are corresponding underexpenditures from these same titles.  Overexpenditures or underexpenditures in any titles may not vary by more than ten percent (10%) without prior consultation with the Advisory Budget Commission.  Written reports covering overexpenditures or underexpenditures of more than ten percent (10%) shall be made to the Joint Legislative Highway Oversight Committee.  The reports shall be delivered to the Director of the Fiscal Research Division not less than 96 hours prior to the beginning of the Committee's full meeting.
(b)	Overexpenditures from Section 4 of this act, Titles:
State Construction Primary Construction
State Construction Urban Construction
State Construction Access and Public Service Roads
State Funds to Match Federal Highway Aid
State Maintenance
Ferry Operations,
for the purpose of providing additional positions shall be approved by the Director of the Budget and shall be reported on a quarterly basis to the Joint Legislative Highway Oversight Committee and to the Fiscal Research Division.

Requested by:   Senator Goldston
––-RESURFACED ROADS MAY BE WIDENED
Sec. 62.  Of the contract maintenance resurfacing program funds appropriated in this act to the Department of Transportation, an amount not to exceed fifteen percent (15%) of the Board of Transportation's allocation of these funds may be used for widening existing narrow pavements that are scheduled for resurfacing.  The Department of Transportation shall report on the use of these funds to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division by May 15, 1992.

Requested by:   Senator Goldston
––-SMALL URBAN CONSTRUCTION PROGRAM FUNDS
Sec. 63.  Of the funds appropriated in this act to the Department of Transportation for fiscal years 1991-92 and 1992-93, $20,000,000 shall be allocated for small urban construction projects.  $14,000,000 of these funds shall be allocated equally among the 14 Highway Divisions for the Small Urban Construction Program for small urban construction projects that are located within the area covered by a one-mile radius of the municipal corporate limits.  The remaining $6,000,000 of these funds shall be used statewide for rural or small urban highway improvements as approved by the Secretary of the Department of Transportation.
None of these funds used for rural secondary road construction are subject to the county allocation formula as provided in G.S. 136-44.5.
The Department of Transportation shall report to the members of the General Assembly on projects funded pursuant to this section in each member's district prior to the Board of Transportation's action.  The Department shall make a quarterly comprehensive report on the use of these funds to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division.

Requested by:   Senator Goldston
––-HIGHWAY FUND ADJUSTMENTS TO REFLECT ACTUAL REVENUE
Sec. 64.  Any unreserved credit balance in the Highway Fund on June 30 of each of the fiscal years shall support appropriations in the succeeding fiscal year.  If all of the balance is not needed for these appropriations, the Director of the Budget may use the remaining excess to establish a reserve for access and public roads, a reserve for unforeseen happening of a state of affairs requiring prompt action as provided by G.S. 136-44.1, and other required reserves.  Actual revenue in excess of estimated revenue shall be placed in the reserve for highway maintenance.  If all of the remaining excess is not used to establish these reserves, the remainder shall be allocated to the State-funded maintenance appropriations in the manner approved by the Board of Transportation.  The Board of Transportation shall report monthly to the Joint Legislative Highway Oversight Committee and the Fiscal Research Division about the use of the reserve for highway maintenance.

Requested by:   Senator Plyler
––-SIGNING OF STATE-MAINTAINED COUNTY ROADS
Sec. 64.1.  $500,000 of the funds to be allocated pursuant to G.S. 136-44.2A for secondary road construction during the 1991-92 fiscal year shall be exempt from the county formula allocation in G.S. 136-44.5.  The Department of Transportation  shall utilize the funds so excluded for the county road name-signing program in the 30 counties where signing has not already been funded.

PART XIV.––-DEPARTMENT OF CORRECTION

Requested by:   Senator Marvin
––-PRIVATE CONFINEMENT FACILITIES
Sec. 65.  No for-profit, privately owned or operated confinement facilities may be added to the State prison system unless approved by the General Assembly.  The State may contract with private, nonprofit firms to provide or operate work and study release centers for women.

Requested by:   Senator Marvin
––-NEGOTIATED RATES FOR MEDICAL SERVICES
Sec. 66.  The Department of Correction shall negotiate for rates as close to Medicaid rates as possible for all medical services rendered to that Department by providers who are not State employees.  The Department shall report the results of its negotiations to the Chairmen of the Senate Appropriations Committee and the Senate Base Budget Appropriations Committee, the Chairmen of the House Appropriations Committee, and the Chairmen of the Senate and the House Appropriations Committees on Justice and Public Safety prior to March 15, 1992.

Requested by:   Senator Marvin
––-LIMIT USE OF OPERATIONAL FUNDS
Sec. 67.  Funds appropriated in this act to the Department of Correction for operational costs for additional facilities shall be used for the personnel and operating expenses set forth in the budget approved by the General Assembly in this act.  These funds may not be expended for any other purpose, and may not be expended for additional prison personnel positions until the new facilities are within 90 days of completion, except as authorized for the facilities at Nash, Pender, South Mountain, and Brown Creek.

PART XV.––-DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by:   Senator Marvin
––-REPORT ON COMMUNITY SERVICE WORKERS
Sec. 68.  The Department of Crime Control and Public Safety shall report quarterly in the 1991-92 fiscal year and the 1992-93 fiscal year to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the number of community service workers who were available during each month of the time period preceding that report to perform repairs and maintenance of the parks and when and where they were available.

Requested by:  Senator Marvin
––-REPORTS ON THE COMMUNITY PENALTIES PROGRAM AND THE CRIME VICTIMS COMPENSATION FUND
Sec. 69.  The Department of Crime Control and Public Safety shall report annually to the Senate and House Appropriations Base Budget Committees on Justice and Public Safety and the Fiscal Research Division on the administrative expenditures of the Community Penalties Program and the North Carolina Crime Victims Compensation Fund.

Requested by:  Senator Marvin
––-LEGISLATIVE REVIEW OF DRUG LAW ENFORCEMENT AND OTHER GRANTS
Sec. 70.  (a)	Section 1303(4) of the Omnibus Crime Control and Safe Streets Act of 1968 provides that State applications for drug law enforcement grants are subject to review by the State legislature or its designated body.
(b)	The North Carolina General Assembly hereby provides that State applications for grants under the State and Local Law Enforcement Assistance Act of 1986, Part M of the Omnibus Crime Control and Safe Streets Act of 1968 as enacted by Subtitle K of P.L. 99-570, the Anti-Drug Abuse Act of 1986, are subject to review by the Joint Legislative Commission on Governmental Operations if at the time of review the General Assembly is not in session.
(c)	Unless a State statute provides a different forum for review where a federal law or regulation provides that a State application for a grant must be reviewed by the State legislature or its designated body and at the time of the review the General Assembly is not in session, that application shall be reviewed by the Joint Legislative Commission on Governmental Operations.

Requested by:  Senator Marvin
––-REPORT ON MOTOR VEHICLE REPLACEMENT COST
Sec. 71.  The Department of Crime Control and Public Safety shall report to the 1991 General Assembly, 1992 Regular Session, regarding the reduction in the number of motor vehicles replaced by the Highway Patrol for the 1991-92 fiscal year and the effect, if any, of that reduction on the Highway Patrol, and shall also review and report on the projected cost of replacing motor vehicles for the 1992-93 fiscal year.  The Department of Justice shall report to the 1991 General Assembly, 1992 Regular Session, regarding the reduction in the number of motor vehicles replaced by the State Bureau of Investigation for the 1991-92 fiscal year and the effect, if any, of that reduction on the State Bureau of Investigation, and shall also review and report on the projected cost of replacing motor vehicles for the 1992-93 fiscal year.

Requested by:  Senator Marvin
––-REPORT ON HIGHWAY PATROL FURNITURE AND EQUIPMENT REPLACEMENT SCHEDULE
Sec. 72.  The Highway Patrol, Department of Crime Control and Public Safety, shall report to the 1991 General Assembly, 1992 Regular Session, regarding the reductions in the replacement schedule for furniture and equipment for the Highway Patrol for the 1991-92 fiscal year and the effect, if any, of those reductions.  The Highway Patrol shall also report on the projected cost of the replacement schedule for equipment and furniture for the 1992-93 fiscal year.

PART XVI.––-JUDICIAL DEPARTMENT

Requested by:   Senator Marvin
––-COMMISSIONERS ON UNIFORM STATE LAWS
Sec. 73.  From funds appropriated to the Judicial Department in the certified budget for the 1991-93 biennium, the Administrative Office of the Courts may transfer within its budget up to $19,000 for the 1991-92 fiscal year and up to $19,000 for the 1992-93 fiscal year to reimburse the expenses of travel of the North Carolina delegation of the National Conference of Commissioners on Uniform State Laws.

Requested by:   Senator Marvin
––-INDIGENT PERSONS' ATTORNEY FEE FUND
Sec. 74.  (a) Effective July 1, 1991, the Administrative Office of the Courts shall each year of the biennium place the sum of $3,249,236 from the Indigent Persons' Attorney Fee Fund in a reserve for capital cases and for transcripts, professional examinations, and expert witness fees.  The Administrative Office of the Courts shall allot these funds as needed for these purposes and for unanticipated demands on the fund.
(b) Effective July 1, 1991, the Administrative Office of the Courts shall, for each year of the biennium, allot the sum of $11,500,000 from the Indigent Persons' Attorney Fee Fund for adult, juvenile, and guardian ad litem cases for the 1991-92 and 1992-93 fiscal years to each judicial district where the superior and district court districts are coterminous, and otherwise by county, according to the caseload of indigent persons who were not represented by the public defender in the districts or counties during 1990-91 and 1991-92, respectively.
The Administrative Office of the Courts shall notify all senior resident superior court judges, all chief district court judges, and the clerk of superior court within the district or county immediately after the allotment is made and shall regularly notify them how much remains for the district or county.
The senior resident superior court judge and the chief district court judge of each district or county shall ask all judges holding court within the district or county: (i) to take into consideration the amount of money allotted at the beginning of the fiscal year and the amount of money remaining in the allotment when they award counsel fees to attorneys of indigent persons, and (ii) to make an effort to award fees equally and justly for legal services provided.  The clerk of superior court for each county shall assure that all judges holding court within the county receive this request from the senior resident superior court judge and the chief district court judge.
(c) If the funds allotted pursuant to subsection (b) of this section are depleted in a district or county prior to the end of the fiscal year, the Administrative Office of the Courts shall allot the remaining funds from the Indigent Persons' Attorney Fee Fund in the same manner as provided in subsection (b) of this section, provided, however, if necessary and appropriate due to unusual and unanticipated circumstances occurring in the current year, the Administrative Office of the Courts may allocate funds to a district or county in a manner calculated to result in the reasonably fair distribution of the remaining funds.  Such funds shall be subject to the limitations and directions set out in subsection (b) of this section.
(d) If the funds allotted pursuant to subsection (c) of this section are depleted in a district or county prior to the end of the fiscal year, the Administrative Office of the Courts is authorized to resume payments in such districts or counties only if and when it is reasonably determined that the total projected expenditures will be less than the total approved budget for the Indigent Persons' Attorney Fee Fund for the fiscal year.

Requested by:  Senator Marvin
––-CURRENT OPERATING EXPENSES
Sec. 75.  From funds appropriated to the Judicial Department in the certified budget for the 1991-92 fiscal year, the Administrative Office of the Courts may transfer within its budget up to $2,500,000 to meet additional current operating expenses for supplies and materials, current obligations, fixed charges, other expenses, equipment and books, and indigent persons' attorney fees.  The Administrative Office of the Courts shall make quarterly reports on transfers made pursuant to this section to the Joint Legislative Commission on Governmental Operations and the Chairmen of the Senate and the House Appropriations Committees on Justice and Public Safety.

Requested by:   Senator Marvin
––-RAPE VICTIM WITNESS COUNSELLOR PROGRAM
Sec. 76.  From funds appropriated to the Judicial Department in the certified budget for the 1991-93 biennium, the Administrative Office of the Courts may transfer within its budget up to $25,000 for the 1991-92 fiscal year and up to $25,000 for the 1992-93 fiscal year to support the existing Rape Victim Witness Counsellor Program.

Requested by:  Senator Marvin
––-ASSIGNED COUNSEL/PUBLIC DEFENDER COST COMPARISON REPORTS FOR DISTRICTS 4A, 5, AND 10; INTENT TO ESTABLISH PUBLIC DEFENDER OFFICES WHERE ASSIGNED COUNSEL COSTS EXCESSIVE
Sec. 77.  (a)	Before the 1992 Regular Session of the General Assembly convenes, the Administrative Office of the Courts shall submit to the House and Senate Appropriations Committees on Justice and Public Safety and to the Joint Legislative Commission on Governmental Operations two reports which compare the amount actually spent on private assigned counsel for indigent persons in Superior Court District or Set of Districts 4A (Sampson, Duplin, and Jones Counties), 5 (New Hanover and Pender Counties), and 10 (Wake County), with the estimated amount which would have been incurred had there been a public defender in each of those districts.  The first report shall be submitted on or before January 1, 1992, and shall cover the period May 1, 1991, through October 31, 1991; the second report shall be submitted on or before May 20, 1992, and shall cover the period May 1, 1991, through April 30, 1992.  Each report shall be based on methods and shall be presented in a format substantially similar to those of the "Comparative Cost Estimates for Establishing Additional Public Defender Offices in Certain Judicial Districts”which are prepared annually by the Administrative Office of the Courts.
(b)	It is the intent of the General Assembly to establish, effective July 1, 1992, a public defender office for a defender district coterminous with any of the three superior court districts or set of districts designated in subsection (a) of this section in which the amount actually spent on private assigned counsel between May 1, 1991, and April 30, 1992, exceeds the estimated amount which would have been incurred in the same period had there been a public defender office in that district or set of districts, as shown in the reports submitted pursuant to subsection (a) of this section.

Requested by:   Senator Marvin
––-JUDICIAL DEPARTMENT PURCHASES OF SUPPLIES, MATERIALS, AND EQUIPMENT
Sec. 78.  During the 1991-93 biennium, the Administrative Office of the Courts is authorized to make direct purchases of supplies, materials, and equipment for the Judicial Department without complying with Article 3 of Chapter 143 of the General Statutes (Purchases and Contracts) provided that (1) all purchases shall be made pursuant to an open competitive bidding process substantially similar to that provided for in that Article, and (2) no purchases may be made under the authority of this section except at a price which is less than that for the same item or items under any State contract in effect at the time of the purchase.
The Administrative Office of the Courts shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division regarding these purchases by December 31, 1991, for the 1991-92 fiscal year and by May 1, 1992, for the 1992-93 fiscal year.

Requested by:  Senator Marvin
––-APPELLATE DEFENDER – DEATH PENALTY CASES
Sec. 79.  (a) Report on Appellate Defender's Office.  The Judicial Department shall submit reports on March 15 of each year of the 1991-93 biennium to the House and Senate Appropriation Committees on Justice and Public Safety and to the Joint Legislative Commission on Governmental Operations on:
(1) 	The purpose and activities of that part of the Appellate Defender's Office devoted to death penalty cases, and
(2) 	An accounting of General Fund expenditures on assistance provided to paid counsel, State-appointed counsel, and pro bono attorneys.
(b) No Lobbying by Appellate Defender's Office.  The Appellate Defender's Office shall not lobby any entity, organization, or legislative body to urge either abolition or retention of the death penalty.  If the Appellate Defender's Office or any of its employees fail to comply with this section or any of the duties of the Appellate Defender's Office related to death penalty cases, the Director of the Administrative Office of the Courts may refuse to seek continued State funding for that part of the Appellate Defender's Office devoted to death penalty cases, or take such other actions as the Director considers appropriate.
(c) Clarify Responsibilities of Appellate Defender.  G.S. 7A-486.3 reads as rewritten:
"§ 7A-486.3. Duties.
The appellate defender shall:
(1) 	Represent indigent persons subsequent to conviction in trial courts pursuant to assignment by trial court judges under the general supervision of the Chief Justice of the Supreme Court. The Chief Justice may, following consultation with the appellate defender and consistent with the resources available to the appellate defender to ensure quality criminal defense services by the appellate defender's office, authorize the appellate defender not to accept assignments of certain appeals but instead to cause those appeals to be assigned either to a local public defender's office or to private assigned counsel.
(2) 	Maintain a clearinghouse of materials and a repository of briefs prepared by the appellate defender to be made available to private counsel representing indigents in criminal cases.
(3) 	Provide continuing legal education training to assistant appellate defenders and to private counsel representing indigents in criminal cases, including capital cases, as resources are available.
(4)	Provide consulting services to attorneys representing defendants in capital cases.
(5)	Recruit qualified members of the private bar who are willing to provide representation in State and federal death penalty postconviction proceedings.
(6)	In his discretion, serve as counsel of record for indigent defendants in capital cases in State court.
(7)	Undertake direct representation and consultation in capital cases pending in federal court only to the extent that such work is fully federally funded."

PART XVII.––-DEPARTMENT OF JUSTICE

Requested by:  Senator Marvin
––-USE OF SEIZED AND FORFEITED PROPERTY TRANSFERRED TO STATE LAW ENFORCEMENT AGENCIES BY THE FEDERAL GOVERNMENT
Sec. 80.  (a)	Assets transferred to the Department of Justice during the 1991-93 biennium pursuant to 19 U.S.C. § 1616a shall be credited to the budget of that Department and shall result in an increase of law enforcement resources for the Department.  Assets transferred to the Department of Crime Control and Public Safety during the 1991-93 biennium pursuant to 19 U.S.C. § 1616a shall be credited to the budget of that Department and shall result in an increase of law enforcement resources for the Department.  The departments shall report to the Joint Legislative Commission on Governmental Operations upon the receipt of these assets and before using these assets shall report the intended use of these assets and the departmental priorities on which the assets may be expended.
	The General Assembly finds that the use of these assets for new projects, the acquisition of real property, repair of buildings where such repair includes structural change, and construction of or additions to buildings may result in additional expenses for the State in future fiscal periods; therefore, the Department of Justice and the Department of Crime Control and Public Safety are prohibited from using these assets for such purposes without the prior approval of the General Assembly.
(b)	This section does not apply to the extent that it prevents North Carolina law enforcement agencies from receiving funds from the U.S. Department of Justice pursuant to 19 U.S.C. § 1616a.

Requested by:  Senator Marvin
––-DEPARTMENT OF JUSTICE STUDY/CHARGES FOR LEGAL SERVICES TO LOCAL GOVERNMENTS AND STATE AGENCIES
Sec. 81.  (a)	The Department of Justice shall study the feasibility of charging local governments for legal services rendered to those governments by the Office of the Attorney General.  The Department of Justice shall consider the number of requests for legal assistance received from local governments, the type of legal assistance requested, the time required to respond to the requests, and any other matters related to the issue of charging local governments for legal assistance.  The Department of Justice shall also consider what fee, if any, is appropriate to charge local governments for such legal services.  The Department of Justice shall report its findings and recommendations to the 1991 General Assembly, 1992 Regular Session.
(b)	The Department of Justice shall study the feasibility of an increase in the fees currently charged other State departments and agencies for its legal services, such fee increase to be effective for the 1993-94 fiscal year.  The Department of Justice shall also study the feasibility of requiring all State departments and agencies that have attorneys assigned to them by the Attorney General to pay the compensation, including salaries and benefits, for those legal positions.  The Department of Justice shall report its finding and recommendations to the 1991 General Assembly, 1992 Regular Session.

Requested by:  Senator Marvin
––-DEPARTMENT OF TRANSPORTATION TO PAY COMPENSATION OF ATTORNEYS ASSIGNED TO MOTOR VEHICLES DIVISION BY THE ATTORNEY GENERAL
Sec. 82.  The Department of Transportation shall pay the compensation, including salaries and benefits, of the attorneys assigned to the Division of Motor Vehicles by the Attorney General.  The funds to pay the compensation for those legal positions shall be taken from the Highway Fund.

Requested by:  Senator Marvin
––-JUSTICE ACADEMY STUDY/STUDENT REGISTRATION FEE
Sec. 83.  The North Carolina Justice Academy shall study the possibility of requiring a student registration fee.  The study shall include consideration of the actual cost for a student to attend the Justice Academy, the merits of charging a registration fee, and the amount, if any, that should be charged as a registration fee.  The North Carolina Justice Academy shall report its findings and recommendations to the 1991 General Assembly, 1992 Regular Session.

Requested by:  Senator Marvin
––-SBI USE OF COURT-ORDERED RESTITUTION FUNDS
Sec. 84.  The State Bureau of Investigation (SBI) may use funds available from court-ordered restitution in undercover drug operations.

Requested by:  Senator Marvin
––-PRIVATE PROTECTIVE SERVICES AND ALARM SYSTEMS LICENSING BOARDS PAY FOR USE OF STATE FACILITIES AND SERVICES
Sec. 85.  The Private Protective Services and Alarm Systems Licensing Boards shall pay the appropriate State agency for the use of physical facilities and services provided to those boards by the State.

PART XVIII.––-DEPARTMENT OF HUMAN RESOURCES

Requested by:   Senator Richardson
––-MEDICAID
Sec. 86.  (a)	Funds appropriated in this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy.  Funds appropriated for these services shall be expended in accordance with the following schedule of services and payment bases.  All services and payments are subject to the language at the end of this subsection.
Services and payment bases:
(1)	Hospital-Inpatient - Payment for hospital inpatient services will be prescribed in the State Plan as established by the Department of Human Resources.  Administrative days for any period of hospitalization shall be limited to a maximum of three days.
(2)	Hospital-Outpatient - Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Human Resources.
(3)	Nursing Facilities - As prescribed under the reimbursement plan for Nursing Facilities.  Nursing facilities providing services to Medicaid recipients who also qualify for Medicare, must be enrolled in the Medicare program as a condition of participation in the Medicaid program, subject to phase-in certification for those nursing facilities not already enrolled in Medicare.  State facilities are not subject to the requirement to enroll in the Medicare Program.
(4)	Intermediate Care Facilities for the Mentally Retarded - As prescribed under the State Plan for reimbursing intermediate care facilities for the mentally retarded.
(5)	Drugs - Drug costs as allowed by federal regulations plus a professional services fee per month excluding refills for the same drug or generic equivalent during the same month.  Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills.  Payments for drugs are subject to the provisions of subsection (h) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with a plan adopted by the Department of Human Resources consistent with federal reimbursement regulations.  Payment of the professional services fee shall be made in accordance with the plan adopted by the Department of Human Resources, consistent with federal reimbursement regulations.  Adjustments to the professional services fee shall be increased by the lower of the Gross National Price (GNP) deflator or the percentage increase approved by the General Assembly.
(6)	Physicians, Chiropractors, Podiatrists, Optometrists, Dentists, Certified Nurse Midwife Services - Fee schedules as developed by the Department of Human Resources.  Payments for dental services are subject to the provisions of subsection (g) of this section.
(7)	Community Alternative Program, EPSDT Screens - Payment to be made in accordance with rate schedule developed by the Department of Human Resources.
(8)	Home Health, Private Duty Nursing, Clinic Services, Prepaid Health Plans - Payment to be made according to reimbursement plans developed by the Department of Human Resources.
(9)	Medicare Buy-In - Social Security Administration premium.
(10)	Ambulance Services - Uniform fee schedules as developed by the Department of Human Resources.
(11)	Hearing Aids - Actual cost plus a dispensing fee.
(12)	Rural Health Clinic Services - Provider based - reasonable cost; nonprovider based - single cost reimbursement rate per clinic visit.
(13)	Family Planning - Negotiated rate for local health departments.  For other providers - see specific services, for instance, hospitals, physicians.
(14)	Independent Laboratory and X-Ray services - Uniform fee schedules as developed by the Department of Human Resources.
(15)	Optical Supplies - One hundred percent (100%) of reasonable wholesale cost of materials.
(16)	Ambulatory Surgical Centers -  Payment as prescribed in the reimbursement plan established by the Department of Human Resources.
(17)	Medicare Crossover Claims - An amount up to the actual coinsurance or deductible or both, in accordance with the plan, as approved by the Department of Human Resources.
(18)	Physical Therapy and Speech Therapy - Services limited to EPSDT eligible children.  Payments are to be made only to the Children's Special Health Services program at rates negotiated by the Department of Human Resources.
(19)	Personal Care Services - Payment in accordance with plan approved by the Department of Human Resources.
(20)	Case Management Services - Reimbursement in accordance with the availability of funds to be transferred within the Department of Human Resources.
(21)	Hospice - Services may be provided in accordance with plan developed by the Department of Human Resources.
(22)	Other Mental Health Services - Unless otherwise covered by this section, coverage is limited to agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services, and reimbursement is made in accordance with a plan developed by the Department of Human Resources not to exceed the upper limits established in federal regulations.
(23)	Medically Necessary Prosthetics or Orthotics for EPSDT Eligible Children - Reimbursement in accordance with plan approved by the Department of Human Resources.
(24)	Health Insurance Premiums - Payments to be made in accordance with the plan adopted by the Department of Human Resources consistent with federal regulations.
Reimbursement is available for up to 24 visits per recipient per year to any one or combinations of the following: physicians, clinics, hospital outpatients, optometrists, chiropractors, and podiatrists.  Prenatal services, all ESPDT children, and emergency rooms are exempt from the visit limitations contained in this paragraph.  Exceptions may be authorized by the Department of Human Resources where the life of the patient would be threatened without such additional care.  Any person who is determined by the Department to be exempt from the 24-visit limitation may also be exempt from the six-prescription limitation.
(b)	Allocation of Nonfederal Cost of Medicaid.  The State shall pay eight-five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section.
(c)	Copayment for Medicaid Services.  The Department of Human Resources may establish copayment up to the maximum permitted by federal law and regulation.
(d)	Medicaid and Aid to Families with Dependent Children Income Eligibility Standards.  Effective January 1, 1990, the maximum net family annual income eligibility standards for Medicaid and Aid to Families with Dependent Children, and the Standard of Need for Aid to Families with Dependent Children shall be as follows.
	Categorically Needy	Medically Needy
Family	Standard	AFDC Payment
	Size	Of Need	Level*	AA,AB,AD*

1	$ 4,344	$ 2,172	$ 2,900
2	5,664	2,832	3,800
3	6,528	3,264	4,400
4	7,128	3,564	4,800
5	7,776	3,888	5,200
6	8,376	4,188	5,600
7	8,952	4,476	6,000
8	9,256	4,680	6,300

*Aid to Families with Dependent Children (AFDC); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).
The payment level for Aid to Families with Dependent Children shall be fifty percent (50%) of the standard of need.
These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
(e)  Spouse Responsibility.  The Department of Human Resources, Division of Medical Assistance, may not consider the income or assets of the spouse of a person who is admitted as a long-term care patient in a certified public or private intermediate care or skilled nursing facility to be available to the institutionalized person.  This provision will remain in effect until superseded by federal law under the Medicare Catastrophic Coverage Act of 1988, on September 1, 1989.
(f)  Dental Coverage Limits.  Dental services will be provided on a restricted basis in accordance with regulations developed by the Department.  Funds for dental services shall be disbursed only with prior approval by the Department of Human Resources, Division of Medical Assistance, as required by this subsection.  No prior approval shall be required for emergency services or routine services.  Routine services are defined as examinations, X rays, prophylaxes, nonsurgical tooth extractions, amalgam fillings, and fluoride treatments.  Prior approval shall be required for all other services and for routine services performed more than two times during a consecutive 12-month period.  The Department of Human Resources shall adopt rules, as provided by the Administrative Procedure Act, to implement this subsection.
(g)  Dispensing of Generic Drugs.  Notwithstanding G.S. 90-85.27 through G.S. 90-85.31, under the Medical Assistance Program (Title XIX of the Social Security Act) a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber personally indicates, either orally or in his own handwriting on the prescription order, "dispense as written”or words of similar meaning.  Generic drugs, when available in the pharmacy, shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand name drugs, subject to the prescriber's "dispense as written”order as noted above.
As used in this subsection "brand name”means the proprietary name the manufacturer places upon a drug product or on its container, label or wrapping at the time of packaging; and "established name”has the same meaning as in section 502(e)(3) of the Federal Food, Drug and Cosmetic Act as amended, 21 U.S.C. § 352(e)(3).
(h)  Exceptions to Service Limitations, Eligibility Requirements, and Payments.  Service limitations, eligibility requirements, and payments, and payments bases in this section may be waived by the Department of Human Resources, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans or community based services programs in accordance with plans approved by the U.S. Department of Health and Human Services, or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient.
(i)  Volume Purchase Plans and Single Source Procurement.  The Department of Human Resources, Division of Medical Assistance, may, subject to the approval of a change in the State Medicaid Plan, contract for services, medical equipment, supplies, and appliances by implementation of volume purchase plans, single source procurement or other similar processes in order to improve cost containment.
(j)  Cost Containment Programs.  The Department of Human Resources, Division of Medical Assistance, may undertake cost containment programs including preadmissions to hospitals and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.
(k)  For all Medicaid eligibility classifications for which the federal poverty level is used as an income limit for eligibility determination, the income limits will be updated each July 1 immediately following publication of federal poverty guidelines.
(l)  Effective January l, 1988, the Department of Human Resources shall provide Medicaid to 19-, 20-, and 21-year-olds in accordance with federal rules and regulations.
(m)  The Department of Human Resources shall provide coverage to pregnant women and children according to the following schedule:
(1)	Pregnant women with incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each July shall be covered for Medicaid benefits;
(2)	Infants under the age of 1 with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each July l, shall be covered for Medicaid benefits;
(3)	Children aged 1 through 5 with family incomes equal to or less than one hundred thirty-three percent (133%) of the federal poverty guidelines as revised each July 1 shall be covered for Medicaid benefits; and
(4)	Children aged 6 through 18 who were born after September 30, 1983, with family incomes equal to the federal poverty guidelines as revised each July 1, shall be covered for Medicaid benefits.
Services to pregnant women eligible under this section continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy.  In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children eligible under this section, no resources test shall be applied.
(n)  The Department of Human Resources may use Medicaid funds budgeted from program services to support the cost of administrative activities to the extent that these administrative activities produce a net savings in services requirements.  Administrative initiatives funded by this section shall be first approved by the Office of State Budget and Management.

Requested by:  Senator Richardson
––-REDUCTIONS FROM INFLATIONARY INCREASES
Sec. 87.  The Department of Human Resources, Division of Medical Assistance, shall effect the reductions of $10,700,000 for the 1991-92 fiscal year and $10,700,000 for the 1992-93 fiscal year from inflationary increases in the following categories of services:
(1)	Inpatient Hospital;
(2)	Specialty Hospital Inpatient;
(3)	Mental Hospital Inpatient - Private;
(4)	Skilled Nursing;
(5)	Intermediate Nursing;
(6)	Intermediate Care Facilities for the Mentally Retarded - Private;
(7)	Physician, Dental, Chiropractor, Optometrist, and Podiatrist;
(8)	Drugs - Profession Services Fee; 
(9)	Home Health;
(10)	Personal Care Service;
(11)	Community Alternative Program (CAP).
The Division of Medical Assistance shall implement these reductions and shall adopt rules necessary to reflect these reductions and accomplish these savings at the earliest appropriate date for each service type.

Requested by:   Senator Richardson
––-GENERAL REDUCTIONS
Sec. 88.  The Department of Human Resources, Division of Medical Assistance, shall effect the reduction of $3,200,000 for the 1991-92 fiscal year and of $3,200,000 for the 1992-93 fiscal year and shall adopt rules necessary to reflect these reductions and accomplish these savings at the earliest appropriate date.

Requested by:  Senator Richardson
––-FAMILY SUPPORT ACT
Sec. 89.  (a)	Section 229 of Chapter 1014 of the 1985 Session Laws is amended by adding a new subsection to read:
"( d)	If any provision of this section is held invalid by a court of competent jurisdiction, the invalidity shall not affect the remaining provisions of this section that can be given effect."
(b)	The General Assembly finds that it is in the best interest of the State and of all its citizens to encourage recipients of Aid to Families with Dependent Children to obtain jobs and become self-sufficient.  It further finds that, by continuing medical assistance and providing limited wage assistance to those recipients who are working, the State will make it possible to help many recipients to be able to keep their jobs, support their families, and become self-sufficient.
(c)	The Social Services Commission shall adopt rules to change the way it budgets Aid to Families with Dependent Children payments that will result in more recipients being able to find work and keep working.  These rules shall include subtracting countable income from the State standard of need, and paying a percentage of the difference.  The percentage that shall be applied to determine the amount of assistance shall be the same percentage set in the Current Operations Appropriations Act that determines the Aid to Families of Dependent Children payment level from the standard of need.

Requested by:  Senator Richardson
––-RETROSPECTIVE ACCOUNTING ADJUSTMENT
Sec. 90.  The Department of Human Resources shall use funds appropriated to it by this act to provide a State supplementary payment to Aid to Families with Dependent Children households adversely affected by the retrospective accounting procedure as allowed under section 403(a) of the Social Security Act as amended by section 157(a) of the Tax Equity and Fiscal Responsibility Act of 1982.  The amount of the State supplement shall not exceed the maximum payment standard for the Aid to Families with Dependent Children Program.

Requested by:  Senator Richardson
––-AFDC/WOMEN IN THIRD TRIMESTER OF PREGNANCY ADJUSTMENT
Sec. 91.  The Division of Social Services, Department of Human Resources, shall provide Aid to Families with Dependent Children to women in their third trimester of pregnancy regardless of whether these women have children, if they otherwise qualify for these payments.

Requested by:  Senator Richardson
––-ADOPTION SUBSIDY
Sec. 92.  The adoption subsidy paid monthly by the Division of Social Services, Department of Human Resources, to eligible families who adopt hard-to-place children shall be established at $150.00 per child per month.

Requested by:  Senator Richardson
––-FOSTER CARE
Sec. 93.  Funds appropriated to the Department of Human Resources by this act for foster care assistance rates shall be used to set the rates at $265.00 per child per month.

Requested by:  Senator Richardson
––-EMERGENCY ASSISTANCE
Sec. 94.  The Division of Social Services, Department of Human Resources, shall not expend more State funds than are appropriated for Emergency Assistance by this act.  Within this limit, Emergency Assistance benefits shall not exceed $300.00 per year per family, payable over a 30-day period.  After this 30-day period, Emergency Assistance benefits are not available to that family until 12 months have elapsed from the initial authorization date.  The family may have no more than a total of $300.00 in liquid assets in order to qualify for any Emergency Assistance pursuant to this section.
It is the intent of the General Assembly that these Emergency Assistance funds shall only be used to provide assistance to persons to alleviate an emergency.  In evaluating whether an emergency exists, the county departments of social services shall apply prudent judgment to evaluate each emergency on its own merits.  Prudent judgment will permit departments of social services to consider whether the client created the emergency and whether the assistance will resolve the emergency.

Requested by:  Senator Richardson
––-FOOD STAMP OUTREACH
Sec. 95.  The Department of Human Resources shall continue a Food Stamp Outreach Program.  Under the Program, the Department shall inform public and private agencies, community groups, potentially eligible persons, and the general public regarding the eligibility requirements of the Food Stamp Program.  The Department shall maintain a referral list of public and private agencies, community groups, and interested persons and organizations who serve low-income persons.  The Department shall inform these agencies and persons regarding the Food Stamp Program and changes in the law that affect client eligibility or the extent of benefits.  The Department shall develop and distribute informational materials, such as public service announcements, brochures, pamphlets, posters, and correspondence.

Requested by:  Senator Richardson
––-CHILD PROTECTIVE SERVICES
Sec. 96.  (a)	Of the funds appropriated to the Department of Human Resources, Division of Social Services for Child Protective Services, the Division shall use up to $175,900 in each fiscal year of the 1991-93 biennium to provide consultation and technical assistance to county departments of social services to strengthen and support local child protective services.  The remaining funds shall be allocated to the county departments of social services as follows:
(1)	$10,000 for the 1991-92 fiscal year and $10,000 for the 1992-93 fiscal year shall be allocated to each of the 15 county departments that did not receive an allocation of the 1985 State appropriation for child protective services;
(2)	In addition, each of the 100 county departments shall receive an allocation of $10,000 for the 1991-92 fiscal year and $10,000 for the 1992-93 fiscal year;
(3)	The balance of available funds shall be allocated to each county department based upon the percentage that the total number of abuse and neglect reports within that county represents to the statewide total number of abuse and neglect reports.  These percentages shall be computed from the reports received by the Central Registry of Abuse and Neglect cases for the next two prior fiscal years.
(b)	Funds allocated to county departments of social services pursuant to this section shall be used for staff carrying out investigations of reports of child abuse or neglect or providing protective or preventive services in cases in which the department confirms neglect, abuse, or dependency.  If a county department demonstrates that it has adequate protective services staff, these funds may be used to purchase or provide treatment and other support services to children and their families in confirmed cases.  All expenditures shall be directly in support of the department's program of protective services for children.  These funds shall not be used to supplant any Social Services Block Grant funds or county appropriations previously budgeted for protective services for children.
(c)	The Department of Human Resources, Division of Social Services, shall establish criteria and guidelines to assure that the allocations to county departments of social services are used in accordance with the intent and purposes of this section.

Requested by:  Senator Richardson
––-CHILD CARING INSTITUTION REIMBURSEMENT
Sec. 97. (a) Funds appropriated to the Department of Human Resources, Division of Social Services, in this act for the 1992-93 fiscal year for the monthly payment of State funds to private residential child care agencies for the provision of foster care shall be disbursed in accordance with rules established by the Social Services Commission pursuant to G.S. 143B-153(2)d., and in accordance with the following requirements:
(1)	Only those child caring agencies that have been receiving funds from the Division of Social Services that have been appropriated as grants-in-aid to non-State agencies shall be included in the disbursement unless additional State or federal funds are made available to permit disbursement to new child caring agencies.  A new child caring agency may receive funds pursuant to this section only if the additional State or federal funds made available are sufficient to allow disbursements to the new agency without reducing the disbursement to the agencies already receiving funds;
(2)	The formula for the disbursement of these funds shall be based on the assumption that the State is committed to paying allowable foster care maintenance costs and shall do so, to the extent that State and federal funds are available; and
(3)	In any year that State and federal funds are not sufficient to pay each agency's allowable foster care maintenance costs, each participating agency's rate shall be reduced by the same percentage, so that each agency receives the same percentage of its allowable costs.
(b) This section becomes effective July 1, 1992.

Requested by:   Senators Richardson, Walker
––-CHILD-PLACING AGENCIES CHANGE
Sec. 98.  G.S. 143B-153(2) reads as rewritten: 
"(2)	The Social Services Commission shall have the power and duty to establish standards and adopt rules and regulations:
a.	For the programs of public assistance established by federal legislation and by Article 2 of Chapter 108A of the General Statutes of the State of North Carolina with the exception of the program of medical assistance established by G.S. 108A-25(b);
b.	To achieve maximum cooperation with other agencies of the State and with agencies of other states and of the federal government in rendering services to strengthen and maintain family life and to help recipients of public assistance obtain self-support and self-care;
c.	For the placement and supervision of dependent and delinquent children and payment of necessary costs of foster home care for needy and homeless children as provided by G.S. 108A-48; and
d.	For the payment of State funds to private child-placing agencies as defined in G.S. 131D-10.2(4) and residential child care facilities as defined in G.S. 131D-10.2(13) for care and services provided to children who are in the custody or placement responsibility of a county department of social services."

Requested by:  Senator Richardson
––-LIMITATIONS ON STATE ABORTION FUND
Sec. 99.   Section 93 of Chapter 479 of the 1985 Session Laws, as amended by Section 75 of Chapter 738 of the 1987 Session Laws, as amended by Section 72 of Chapter 500 of the 1989 Session Laws, as amended by Section 79 of Chapter 1066 of the 1989 Session Laws, Regular Session 1990, shall remain in effect on and after July 1, 1991, with the following exception:
Any reference in Section 93 of Chapter 479 of the 1985 Session Laws, as amended, to the 1985-86 fiscal year or the 1986-87 fiscal year applies to the 1991-92 fiscal year and the 1992-93 fiscal year.

Requested by:  Senator Richardson
––-WILLIE M.
Sec. 100.  (a)	Legislative Findings.  The General Assembly finds:
(1)	That there is a need in North Carolina to provide appropriate treatment and education programs to children under the age of 18 who suffer from emotional, mental, or neurological handicaps accompanied by violent or assaultive behavior;
(2)	That children meeting these criteria have been identified as a class in the case of Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al.; and
(3)	That these children have a need for a variety of services, in addition to those normally provided, that may include but are not limited to residential treatment services, educational services, and independent living arrangements.
(b)	Funds appropriated by the General Assembly to the Department of Human Resources for serving members of the Willie M. Class shall be expended only for programs serving members of the Willie M. Class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., including evaluations of potential class members.  The Department shall reallocate these funds among services to Willie M. Class members during the year as it deems advisable in order to use the funds efficiently in providing appropriate services to Willie M. Class children.
(c)	Funds for Department of Public Education.  Funds appropriated to the Department of Public Education in this act for members of the Willie M. Class, are to establish a supplemental reserve fund to serve only members of the class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al.  These funds shall be allocated by the State Board of Education to the local education agencies to serve those class members who were not included in the regular average daily membership and the census of children with special needs, and to provide the additional program costs which exceed the per pupil allocation from the State Public School Fund and other State and federal funds for children with special needs.
(d)	The Department of Human Resources shall continue to implement its prospective unit cost reimbursement system and shall ensure that unit cost rates reflect reasonable costs by conducting cost center service type rate comparisons and cost center line item budget reviews as may be necessary, and based upon these reviews and comparisons, the Department shall reduce and/or cap rates to programs which are significantly higher than those rates paid to other programs for the same service.
Any exception to this requirement shall be approved by the Director of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and shall be reported in the Department's annual joint report to the Governor and the General Assembly and in any periodic report the Department may make to the Joint Legislative Commission on Governmental Operations.
(d1)  The Department of Human Resources shall implement a process to review those cases for whom treatment has been recommended whose annual cost is anticipated to be in excess of one hundred fifty percent (150%) of the average annual per client expenditure of the previous fiscal year and shall take actions to reduce these treatment costs where appropriate.
(e)  Reporting Requirements.  The Department of Human Resources and the Department of Public Education shall submit, by May 1 of each fiscal year, a joint report to the Governor and the General Assembly on the progress achieved in serving members of the Willie M. Class.  The report shall include the following unduplicated data for each county:  (i)  the number of children nominated for the Willie M. Class;  (ii)  the number of children actually identified as members of the Class in each county;  (iii)  the number of children served as members of the Class in each county;  (iv)  the number of children who remain unserved or for whom additional services are needed in order to be determined to be appropriately served;  (v) the types and locations of treatment and education services provided to Class members;  (vi)  the cost of services, by type, to members of the Class and the maximum and minimum rates paid to providers for each service; (vii)  the number of cases whose treatment costs were in excess of one hundred fifty percent (150%) of the average annual per client expenditure; (viii) information on the impact of treatment and education services on members of the Class; (ix) an explanation of, and justification for, any waiver of departmental rules that affect the Willie M. program; and (x) the total State funds expended, by program, on Willie M. class members, other than those funds specifically appropriated for the Willie M. programs and services.
(e1)  From existing funds available to it, the Department of Human Resources shall begin a process to document and assess individual class members' progress through the continuum of services.  Standardized measures of functioning shall be administered periodically:
(1)	In the 1991-92 fiscal year, to a representative sample of class members;
(2)	In the 1992-93 fiscal year and thereafter, to each member of the class, and the information generated from these measures shall be used to assess client progress and program effectiveness,
(f)  The Departments of Human Resources and Public Education shall provide periodic reports of expenditures and program effectiveness on behalf of the Willie M. Class to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division.  As part of these reports, the Departments shall explain measures they have taken to control and reduce program expenditures.
(g)  In fulfilling the responsibilities vested in it by the Constitution of North Carolina, the General Assembly finds:
(1)	That the General Assembly has evaluated the known  needs of the State and has endeavored to satisfy those needs in comparison to their social and economic priorities; and
(2)	That the funds appropriated will enable the development and implementation of placement and services for the class members in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., within a reasonable period of time considered within the context of the needs of the class members, the other needs of the State and the resources available to the State.
(h)  The General Assembly supports the efforts of the responsible officials and agencies of the State to meet the requirements of the court order in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al.  To ensure that Willie M. class members are appropriately served, no State funds shall be expended on placement and services for Willie M. class members except:
(1)	Funds specifically appropriated by the General Assembly for the placement and services of Willie M. class members; and
(2)	Funds for placement and services for which Willie M. class members are otherwise eligible.
This limitation shall not preclude the use of unexpended Willie M. funds from prior fiscal years to cover current or future needs of the Willie M. program subject to approval by the Director of the Budget.  These Willie M. expenditures shall not be subject to the requirements of G.S. 143-18.
(i)  Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing appropriate services to members of the class identified in Willie M., et al. vs. Martin, et al., formerly Willie M., et al. vs. Hunt, et al., the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of such programs.
(j)  The Department of Human Resources and the Department of Public Instruction shall submit a plan to the General Assembly by April 1, 1992, which outlines specific steps which are to be taken, within a specified time period, and within existing resources, to meet its obligation of providing appropriate services to class members.  As part of this plan, the Department shall propose when and how the Willie M. program shall become fully self-regulating and self-monitoring.

Requested by:  Senators Richardson, Block
––-WILLIE M. AUDIT CONTINUED
Sec. 101.   The Office of State Auditor shall conduct a follow-up study of its 1990 performance audit of the Willie M. program to determine, along with other issues the Auditor considers appropriate, the following:
(1)	To what extent the range of reimbursement rates paid to area programs for similar types of services has been reduced;
(2)	To what extent the process implemented by the Department of Human Resources to review high-cost Willie M. clients has been effective in reducing the number of these clients and the costs of providing these clients services; and
(3)	To what extent a client evaluation process has been implemented by the Department of Human Resources and with what results.
The Auditor may also conduct an analysis of costs associated with providing services to a sample of clients, including high-cost clients, to determine the justification of the costs incurred.  The Auditor shall submit the findings of this follow-up study of the Willie M. program to the General Assembly by February 15, 1993.

Requested by:  Senator Richardson
––-THOMAS S.
Sec. 102.  (a)	Funds appropriated to the Department of Human Resources in this act for the 1991-92 fiscal year and the 1992-93 fiscal year for members of the Thomas S. Class as identified in Thomas S., et al. vs. Flaherty, shall be placed in a reserve in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, and shall be expended only for programs serving Thomas S. Class members or for services for those clients who are likely to become class members.
(b)	The Department of Human Resources shall provide periodic reports of funds expended and services performed on behalf of members of the Thomas S. Class and on behalf of those clients who are likely to become class members to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office.
(c)	Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing minimally adequate services to members of the class identified in Thomas S., et al. vs. Flaherty, the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of such programs.

Requested by:  Senator Richardson
––-TRANSFERS OF CERTAIN FUNDS AUTHORIZED
Sec. 103.  In order to assure maximum utilization of funds in county departments of social services, county or district health agencies, and area mental health, mental retardation, and substance abuse authorities, the Director of the Budget is authorized to transfer excess funds appropriated to a specific service or program or fund, whether specified in a block grant plan or General Fund appropriation, into another service or program or fund for local services within the budget of the respective State agency.
The Office of State Budget and Management shall report quarterly to the Joint Legislative Commission on Governmental Operations on each transfer authorized by this section.

Requested by:  Senator Richardson
––-MIXED BEVERAGE TAX FOR AREA MENTAL HEALTH PROGRAMS
Sec. 104.  Funds received by the Department of Human Resources for the tax levied on mixed beverages under G.S. 18B-804(b)(8) shall be expended by the Department of Human Resources as prescribed by G.S. 18B-805(h).  These funds shall be matched by local funds in accordance with the State/local ratio established by the current area mental health matching formula.  These funds shall be allocated to the area mental health programs for substance abuse services on a per capita basis as determined by the Office of State Budget and Management's most recent estimates of county populations.

Requested by:  Senator Richardson
––-ADAP TRANSPORTATION FUNDS
Sec. 105.  (a)	Reimbursement of Adult Developmental Activity Programs for transportation of clients shall be based on a cost per client basis.  There shall be different levels of reimbursement based on documented cost levels.
(b)	In reimbursing Adult Developmental Activity Programs, the Department of Human Resources shall base the reimbursement on the distribution by cost range developed by the Division of Mental Health, Developmental Disabilities and Substance Abuse Services, in accordance with its most recently conducted cost study.

Requested by:  Senator Richardson
––-SPECIALIZED RESIDENTIAL CENTERS' BED CONVERSION
Sec. 106.  Funds made available as a result of the conversion of State supported beds in specialized residential centers to ICF/MR beds shall be used to increase the State subsidy provided to centers.  Funds made available to centers by this section shall be used, as they become available, to increase the subsidy rate to sixty-five percent (65%) of the statewide average cost of providing this service based on the most recent Specialized Community Residential Cost Study.
Funds made available in addition to those needed to increase the subsidy rate may be transferred to the Department of Human Resources, Division of Medical Assistance, as needed to be used as a State match for the converted ICF/MR beds.

Requested by:  Senator Richardson
––-LIABILITY INSURANCE
Sec. 107.  The Secretary of the Department of Human Resources, the Secretary of the Department of Environment, Health, and Natural Resources, and the Secretary of the Department of Correction may provide medical liability coverage not to exceed $1,000,000 on behalf of employees of the Departments licensed to practice medicine or dentistry.  This coverage may include commercial insurance or self-insurance and shall cover these employees for their acts or omissions only while they are engaged in providing medical and dental services pursuant to their State employment.
The coverage provided under this section shall not cover any employee for any act or omission that the employee knows or reasonably should know constitutes a violation of the applicable criminal laws of any state or the United States, or that arises out of any sexual, fraudulent, criminal or malicious act, or out of any act amounting to willful or wanton negligence.
The coverage provided pursuant to this section shall not require any additional appropriations and shall not apply to any individual providing contractual service to the Department of Human Resources, the Department of Environment, Health, and Natural Resources, or the Department of Correction.

Requested by:  Senator Richardson
––-NON-MEDICAID REIMBURSEMENT
Sec. 108.  Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Human Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days.  When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one of this section, the Department of Human Resources may negotiate with providers of medical services under the various Department of Human Resources programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes:  contracts or agreements for medical services and purchases of medical equipment and other medical supplies.  These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents, and clients, who require these services that cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs shall be as follows:
Family		Medical Eye	All
Size		Care Adults	Rehabilitation	Other
1		$4,860	$ 8,364	$4,200
2	 	 5,940	 10,944	 	 5,300
3	 	 6,204	 13,500	 	 6,400
4		 7,284	 16,092	 	 7,500
5		 7,824	 18,648	 	 7,900
6		 8,220	 21,228	 	 8,300
7		 8,772	 21,708	 8,800
8		 9,312	 22,220	 	 9,300
The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year.
The Department of Human Resources shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department.

Requested by:  Senator Richardson
––-JOHN UMSTEAD HOSPITAL - PLANNING
Sec. 109.  The Department of Human Resources may use funds that become available to it through gifts, federal or private grants, receipts from federal programs, or any other source in the 1991-92 fiscal year, for advance planning through the working drawings phase for a psychiatric facility at John Umstead Hospital.

Requested by:  Senator Richardson
––-DIVISION OF MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES BUDGET CODE CONSOLIDATION
Sec. 110.  Subject to the approval of the Office of State Budget and Management, in order to operate more efficiently, the Department of Human Resources may consolidate the appropriate budget codes of the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and the institutions operated by the Division.  Any consolidation shall ensure that each institution budget is clearly identifiable as a separate fund within the consolidated budget code or codes.  To implement this change, the General Assembly approves current budget code structure of the Division's and institutions' budgets for the 1991-93 fiscal biennium and authorizes the Department to proceed with appropriate consolidation of these budget codes during the 1991-93 fiscal biennium.

Requested by:  Senator Richardson
––-DEVELOPMENTAL DAY CENTERS GRANT-IN-AID
Sec. 111.  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 $2,260,470 for the 1991-92 fiscal year is transferred to the Department of Public Instruction for handicapped children aged 3 through 4 years who have been identified through Division of Mental Health, Developmental Disabilities, and Substance Abuse Services statewide services and who are served in developmental day centers.  These funds shall be used to contract with area mental health, developmental disabilities, and substance abuse authorities or with private nonprofit developmental day centers to continue to serve handicapped children aged 3 through 4 years who are identified as needing developmental day services.
The Department of Public Instruction shall report to the General Assembly and to the Fiscal Research Division by May 1, 1992, regarding the use of the funds transferred to it by this section.

Requested by:  Senator Richardson
––-CAREGIVER SUPPORT SHARING
Sec. 112. (a)	Of the funds appropriated to the Division of Aging, Department of Human Resources, by this act for the 1991-93 fiscal biennium, the sum of $1,008,000 for the 1991-92 fiscal year and the sum of $1,008,000 for the 1992-93 fiscal year shall be used for services that support family caregivers of elderly persons with functional disabilities, whether physical or mental, who want to stay in their homes rather than be institutionalized but who need assistance with the activities of daily living in order to remain at home.  The services that may be purchased from funds received under this section include:
(1)	Respite Care;
(2)	Adult Day Care;
(3)	Stipends and other related costs for senior companions, modeled after the federal Senior Companion Program; and
(4)	Other related services that meet needs not now adequately addressed by the services described in subdivisions (1) through (3) of this subsection.
(b) The Division of Aging shall expend funds for these services according to the population of persons 70 years of age or older in each region.  The Division of Aging shall use a maximum of ninety-five percent (95%) of the funds it receives under this section for the services described in subdivisions (1) through (4) of subsection (a) of this section and may only use a maximum of five percent (5%) for technical assistance as described in subsection (c) of this section.  The Division of Aging shall choose providers in accordance with procedures under the Older Americans Act.  Funds allocated by the Division pursuant to this section shall be allocated by October 1 of each fiscal year.  Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%).  State funding shall not exceed ninety percent (90%) of the reimbursable costs.
(c) The Division of Aging may contract for technical assistance.  The technical assistance shall include training assistance, coordination of various service delivery and funding sources, and ideas for innovative ways to build a lasting system of services for family caregivers.

Requested by:  Senator Richardson
––-IN-HOME AGING SERVICES
Sec. 113.  Of the funds appropriated to the Division of Aging, Department of Human Resources, by this act for the 1991-93 fiscal biennium, the sum of $720,000 for the 1991-92 fiscal year and the sum of $720,000 for the 1992-93 fiscal year shall be used to provide funds for additional in-home aide services that enable the frail elderly to remain in their homes and avoid institutionalization.
The Division shall administer the in-home aide services and activities funded by this section.  The Division of Aging shall choose in-home service providers in accordance with procedures under the Older Americans Act and shall include the following criteria: documented capacity to provide care, adequacy of quality assurance, training, supervision, abuse prevention complaint mechanisms, and costs.  All funds allocated by the Division pursuant to this section shall be allocated by October 1 of each fiscal year on the same basis as funding under the Older Americans Act.  Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%).  State funding shall not exceed ninety percent (90%) of the reimbursable costs.

Requested by:  Senator Richardson
––-SENIOR CENTER OUTREACH
Sec. 114.  (a) Of the funds appropriated to the Department of Human Resources, Division of Aging, by this act for the 1991-93 fiscal biennium, $403,800 for the 1991-92 fiscal year and $403,800 for the 1992-93 fiscal year shall be used by the Division of Aging to enhance senior center programs as follows:
(1)	To test "satellite”services provided by existing senior centers to unserved or underserved areas; or
(2)	To provide start-up funds for new senior centers.
All of these funds shall be allocated by October 1 of each fiscal year.
(b) Prior to funds being allocated pursuant to this section for start-up funds for a new senior center, the county commissioners of the county in which the new center will be located shall:
(1)	Formally endorse the need for such a center;
(2)	Formally agree on the sponsoring agency for the center; and
(3)	Make a formal commitment to use local funds to support the ongoing operation of the center.
(c) Effective July 1, 1992, local matching requirements shall be no less than ten percent (10%).  State funding shall not exceed ninety percent (90%) of reimbursable costs.

Requested by:  Senator Richardson
––-FUNDS TO MATCH FEDERAL FUNDS FOR AGING
Sec. 115.  The Division of Aging, Department of Human Resources, may use funds appropriated in this act to provide the State matching requirement necessary to draw down federal money available through Title III-D of the Older Americans Act for in-home services for the frail elderly, including those with Alzheimer's Disease.

Requested by:  Senator Richardson
––-DAY CARE FUNDS MATCHING REQUIREMENT
Sec. 116.  No local matching funds may be required by the Department of Human Resources as a condition of any locality's receiving any State day care funds appropriated by this act unless federal law requires such a match.

Requested by:  Senator Richardson
––-DAY CARE
Sec. 117.  The Department of Human Resources shall distribute the funds appropriated and otherwise available to it for the purchase of slots in day care for minor children of needy families so as to serve the greatest number of children possible.

Requested by:  Senator Richardson
––-DAY CARE RATES
Sec. 118.  (a)	Rules for the monthly schedule of payments for the purchase of day care services for low-income children shall be established by the Social Services Commission pursuant to G.S. 143B-153(8)a., in accordance with the following requirements:
(1)	For day care facilities, as defined in G.S. 110-86(3), in which fewer than fifty percent (50%) of the enrollees are subsidized by State or federal funds, the State shall continue to pay the same fee paid by private paying parents for a child in the same age group in the same facility.
(2)	Facilities in which fifty percent (50%) or more of the enrollees are subsidized by State or federal funds may choose annually one of the following payment options:
a.	The facility's payment rate for fiscal year 1985-86; or
b.	The market rate, as calculated annually by the Division of Facility Services' Child Day Care Section in the Department of Human Resources.
(3)	A market rate shall be calculated for each county and for each age group or age category of enrollees and shall be representative of fees charged to unsubsidized private paying parents for each age group of enrollees within the county.  The county market rates shall be calculated from facility fee schedules collected by the Child Day Care Section on a routine basis.  The Section shall also calculate a statewide market rate for each age category.  The Social Services Commission shall adopt rules to establish minimum county rates that use the statewide market rates as a reference point.
(4)	Child day care homes as defined in G.S. 110-86(4) and individual child care arrangements may be paid the market rate for day care homes which shall be calculated at least biennially by the Child Day Care Section according to the method described in subsection (a)(3) of this section.
(b)	Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes may participate in the program that provides for the purchase of care in day care facilities for minor children of needy families.  No separate licensing requirements may be used to select facilities to participate.
Day care homes from which the State purchases day care services shall meet the standards established by the Child Day Care Commission pursuant to G.S. 110-101 and G.S. 110-105.1.  Individual child care arrangements shall meet the requirements established by the Social Services Commission.
(c)	County departments of social services shall continue to negotiate with day care providers for day care services below those rates prescribed by subsection (a) of this section.  County departments are directed to purchase day care services so as to serve the greatest number of children possible with existing resources.
(d)	To simplify current day care allocation methodology and more equitably distribute State day care funds, the Department of Human Resources shall apply the following allocation formula to all noncategorical federal and State day care funds used to pay the costs of necessary day care for minor children of needy families:
(1)	One-third of budgeted funds shall be distributed according to the county's population in relation to the total population of the State;
(2)	One-third of the budgeted funds shall be distributed according to the number of children under 6 years of age in a county who are living in families whose income is below the State poverty level in relation to the total number of children under 6 in the State in families whose income is below the poverty level; and 
(3)	One-third of budgeted funds shall be distributed according to the number of working mothers with children under 6 years of age in a county in relation to the total number of working mothers with children under 6 in the State.
(e)  Counties whose allocation, if based on previously used formulas, exceeds the allocation produced by the formula prescribed by this section may not have their allocations reduced to the level that results from application of the new formula.  Counties whose allocation, if based on previously used formulas, is less than the allocation produced by the formula prescribed by this section shall continue to receive the proportional share of those funds that they received pursuant to appropriations for this purpose by the 1985 General Assembly.  The formula prescribed by this section shall not be implemented unless additional State or federal funds are made available.  The additional funds must be sufficient to apply the new formula without reducing any county's allocation below the previous year's initial allocation for child day care.

Requested by:  Senator Richardson
––-COMMUNITY ACTION PROGRAM FUNDS
Sec. 119.  For the 1991-92 fiscal year and the 1992-93 fiscal year, all agencies designated as eligible agencies pursuant to G.S. 108A-24 that receive Community Service Block Grant Funds may use those funds for the administration of agency programs.  The amount of those funds used for administration of agency programs shall be limited to ten percent (10%) of the total annual budget of the agency as certified in the prior year's audit of the agency.  The Department of Human Resources shall report annually to the Joint Legislative Commission on Governmental Operations and the Appropriations Committee on Human Resources beginning October 1, 1991, on the use of Community Service Block Grant Funds for administration of agency programs.  The report shall show: 
(1)	The total budget for each community action agency or limited purpose agency by program-funding source;
(2)	The amount of funds for administration provided by each program;
(3)	The criteria for determining the amount of funds used for administrative expenses; and 
(4)	The number of persons served by each program.

Requested by:  Senator Richardson
––-DOMICILIARY RATE INCREASE
Sec. 120.  Effective July 1, 1991, the maximum monthly rate for ambulatory residents in domiciliary care facilities shall be $766.00 and the maximum monthly rate for semiambulatory residents shall be $803.00.  Effective July 1, 1992, the maximum monthly rates for ambulatory residents shall be increased to $777.00 and for semiambulatory residents to $814.00.

Requested by:  Senator Richardson
––-DOMICILIARY STATE/COUNTY SHARE OF COSTS
Sec. 121.  Article 3 of Chapter 143B of the General Statutes is amended by adding a new section to read:
"§ 143B-139.5.  Department of Human Resources; domiciliary State/county share of costs.
State funds available to the Department of Human Resources shall pay fifty percent (50%), and the counties shall pay fifty percent (50%) of the authorized rates for domiciliary care in homes for the aged and for family care homes including area mental health agency-operated or contracted-group homes."

Requested by:  Senator Richardson
––-DHR EMPLOYEES/IN-KIND MATCH
Sec. 122.  Notwithstanding the limitations of G.S. 143B-139.4, the Secretary of the Department of Human Resources may assign employees of the Office of Rural Health and Resource Development to serve as in-kind match to nonprofit corporations working to establish health care programs that will improve health care access while controlling costs.

Requested by:  Senator Richardson
––-NO EYE CLINICS IN CERTAIN COUNTIES 
Sec. 123.  No funds may be expended by the Division of Services for the Blind, Department of Human Resources, to hold eye clinics in any county in which an optometrist or ophthalmologist is willing to perform the services that would otherwise be performed by the clinic.

Requested by:  Senator Richardson
––-COMMUNITY-BASED ALTERNATIVES PARTICIPATION
Sec. 124.  County governments participating in the Community-Based Alternatives Program shall certify annually to the Division of Youth Services, Department of Human Resources, that Community-Based Alternatives Aid to Counties shall not be used to duplicate or supplant other programs within the county.

Requested by:  Senator Richardson
––-DEPARTMENT OF HUMAN RESOURCES PROGRAM FUNDS
Sec. 125.  Notwithstanding the provisions of G.S. 143-23, the Secretary of the Department of Human Resources, with the approval of the Office of State Budget and Management, may use, to the extent possible, any funds appropriated or otherwise available to the Department in the 1991-92 fiscal year for the Mental Health Accounts Receivable/Billing System.

Requested by:  Senator Richardson
––-CONVERSION OF MURDOCH CENTER BEDS TO INTERMEDIATE CARE FACILITY/MENTAL RETARDATION UNITS
Sec. 126.  The Division of Mental Health, Developmental Disabilities, and Substance Abuse Services may use State funds made available from the conversion of units at Murdoch Center to Intermediate Care Facility/Mental Retardation units in order to expand community-based services as specified in the Mental Health Study Commission plans adopted by the General Assembly.

Requested by: Senator Richardson
––-SHORT-TERM LOAN FUND FOR INTERMEDIATE CARE FACILITIES/MENTAL RETARDATION FACILITIES
Sec. 127.  The Department of Human Resources may use funds that become available to it through gifts, federal, or private grants, receipts from federal programs or any other resource to develop a revolving short-term loan fund to assist area mental health, developmental disabilities, and substance abuse programs and their nonprofit contract agencies in establishing community ICF/MR facilities.

Requested by: Senator Richardson
––-EXPANSION OF THE TARGET POPULATION FOR TASC SERVICES
Sec. 128.  Treatment Alternatives to Street Crimes (TASC) services may include mentally ill offenders as well as substance abusing offenders.

PART XIX.––-DEPARTMENT OF AGRICULTURE

Requested by:  Senator Martin of Pitt
––-AGRICULTURE TO MARKET FOREST PRODUCTS
Sec. 129.  The Department of Agriculture shall market forest products through the Department's marketing programs.

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

Requested by:  Senator Martin of Pitt
––-MAIN STREET PROGRAM RESTRICTIONS
Sec. 130. (a) G.S. 143B-472.35(e) reads as rewritten:
"(e)	A Main Street City that is selected may not receive a grant plus any loans pursuant to this act totaling less than twenty thousand dollars ($20,000) or more than three hundred thousand dollars ($300,000)."
(b) Notwithstanding G.S. 143B-472.35(b), the Department of Economic and Community Development may transfer not more than $40,000 of interest earnings credited to the Main Street Financial Incentive Fund pursuant to G.S. 143B-472.35(a), from the Fund to the North Carolina Main Street Center Program operating budget for fiscal year 1991-92.
(c) Notwithstanding G.S. 143B-472.35, the Department of Economic and Community Development shall transfer $100,000 of interest earnings in the Main Street Financial Incentive Fund from the Fund to the General Fund for fiscal year 1991-92. The Department shall transfer funds pursuant to this subsection on July 1, 1991.

Requested by:  Senator Martin of Pitt
––-WORKER TRAINING TRUST FUND
Sec. 131.  (a)	There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of $6,459,673 for the 1991-92 fiscal year and the sum of $6,459,673 for the 1992-93 fiscal year for the operation of local offices at the 1986-87 level of service.
(b)	Notwithstanding G.S. 96-5(c), there is appropriated from the Special Employment Security Administration Fund to the Employment Security Commission of North Carolina, the sum of $2,000,000 for the 1991-92 fiscal year and the sum of $2,000,000 for the 1992-93 fiscal year for administration of the Veterans Employment Program, Employment Services Program, and Unemployment Insurance Program.
(c)	Supplemental federal funds or other additional funds received by the Employment Security Commission for similar purposes shall be expended prior to the expenditure of funds appropriated by this section.
(d)	Notwithstanding the provisions of G.S. 96-5(f), there is appropriated from the Worker Training Trust Fund to the following agencies the following sums for the 1991-92 and the 1992-93 fiscal years for the following purposes:
(1)	$2,000,000 for the 1991-92 fiscal year and $2,000,000 for the 1992-93 fiscal year to the North Carolina Department of Economic and Community Development for the State job training program to be administered through the Job Training Partnership Act system aimed at the unemployed and the working poor.
(2)	$500,000 for the 1991-92 fiscal year and $500,000 for the 1992-93 fiscal year to the North Carolina Department of Labor for customized training of the unemployed and the working poor for specific jobs needed by employers through the Department's Preapprenticeship Division.
(3)	$2,000,000 for the 1991-92 fiscal year and $2,000,000 for the 1992-93 fiscal year to the North Carolina Department of Human Resources to assist welfare recipients in gaining employment through the federally funded Job Opportunities and Basic Skills Program in such a way as to gain the maximum match of federal funds for the State dollars appropriated.
(4)	$1,250,000 for the 1991-92 fiscal year and $1,250,000 for the 1992-93 fiscal year to the North Carolina Department of Community Colleges to continue the Focused Industrial Training Program.

Requested by:  Senator Martin of Pitt
––-WORKER TRAINING TRUST FUND/REVERSION OF FUNDS
Sec. 132.  G.S. 96-5(f) reads as rewritten:
"(f)	Employment Security Commission Reserve Fund. – There is created in the State treasury a special trust fund, separate and apart from all other public moneys or funds of this State, to be known as the Employment Security Commission Reserve Fund, hereinafter ‘Reserve Fund'.  Except as provided herein and in G.S. 96-9(b)(3)j, all proceeds from the tax as defined in G.S. 96-9(b)(3)j and collected pursuant to G.S. 96-10 shall be paid into the Reserve Fund.  The moneys in the Reserve Fund may be used by the Commission for loans to the Unemployment Insurance Fund, as security for loans from the federal Unemployment Insurance Trust Fund, and to pay any interest required on advances under Title XII of the Social Security Act as required by G.S. 96-6(f), and shall be continuously available to the Commission for expenditure in accordance with the provisions of this section.  The State Treasurer shall be ex officio the treasurer and custodian and shall invest said moneys in accordance with existing law as well as rules and regulations promulgated pursuant thereto.  Furthermore, the State Treasurer shall disburse the moneys in accordance with the directions of the Commission and in accordance with such regulations as the Commission may prescribe.
Administrative costs for the collection of the tax and interest payable to the Reserve Fund shall be borne by the Special Employment Administration Fund.  Refunds of interest and tax allowable under G.S. 96-9(b)(3)j shall be made from the Reserve Fund.  No taxes shall be collected or paid into this fund during a calendar year when, as of the computation date (August 1) of the preceding calendar year, the balance of the fund equals to or exceeds one percent (1%) of the taxable wages.
The interest earned from investment of the Reserve Fund moneys shall be deposited in a fund hereby established in the State Treasurer's Office, to be known as the ‘Worker Training Trust Fund'.  These moneys shall be used to:
(1)	Fund programs, specifically for the benefit of unemployed workers or workers who have received notice of long-term layoff or permanent unemployment, which will enhance the employability of workers, including, but not limited to, adult basic education, adult high school or equivalency programs, occupational skills training programs, assessment, job counseling and placement programs;
(2)	Continue operation of local Employment Security Commission offices throughout the State; or
(3)	Provide refunds to employers.
The use of funds from the Worker Training Trust Fund, for the purposes set out in the above paragraph, shall be pursuant to appropriations in the Current Operations Appropriations Act.  Funds deposited in the Worker Training Trust Fund prior to July 1, 1987, shall be used as provided in the Current Operations Appropriations Act for 1987-89.  Funds appropriated from the Worker Training Trust Fund that are unexpended and unencumbered at the end of the fiscal year for which they are appropriated shall revert to the State treasury to the credit of the Worker Training Trust Fund in accordance with G.S. 143-18."

Requested by:  Senator Martin of Pitt
––-UTILITIES REGULATORY FEE
Sec. 133.  The percentage rate for the Utilities regulatory fee is set at nine hundredths percent (0.09%) effective July 1, 1991.

Requested by:  Senator Martin of Pitt
––-TOURISM PROMOTION FUNDS
Sec. 134.  Funds appropriated in this act to the Department of Economic and Community Development for tourism promotion grants shall be allocated according to per capita income, unemployment, and population growth in an effort to direct funds to counties most in need in terms of lowest per capita income, highest unemployment, and slowest population growth, in the following manner:
(1)	Counties 1 through 20 are each eligible to receive a maximum grant of $7,500 for each fiscal year, provided these funds are matched on the basis of one non-State dollar for every four State dollars.
(2)	Counties 21 through 50 are each eligible to receive a maximum grant of $3,500 for two of the next three fiscal years, provided these funds are matched on the basis of one non-State dollar for every three State dollars.
(3)	Counties 51 through 100 are each eligible to receive a maximum grant of $3,500 for alternating fiscal years, beginning with the 1991-92 fiscal year, provided these funds are matched on the basis of four non-State dollars for every State dollar.

Requested by:  Senator Martin of Pitt
––-PETROLEUM OVERCHARGE ATTORNEY FEES
Sec. 135.  (a) Unless prohibited by federal law, rule, or regulation or preexisting settlement agreement, no later than October 1, 1989, the North Carolina Attorney General shall direct the withdrawal of all funds received in the cases of United States v. Exxon and Stripper Well that are held in accounts or reserves located out-of-State for payment of attorney fees and reasonable expenses incurred in connection with oil overcharge litigation authorized by the Attorney General.  The Attorney General shall deposit these funds, and all funds to be received from petroleum overcharge funds in the future for attorney fees and reasonable expenses, into the Special Reserve for Oil Overcharge Funds.
(b)	All attorney fees and reasonable expenses incurred in connection with oil overcharge litigation shall be paid by the State Treasurer from petroleum overcharge funds that have been received by this State and deposited into the Special Reserve for Oil Overcharge Funds.
(c)	Notwithstanding any other provision of law, the Attorney General may authorize the payment of attorney fees and reasonable expenses from the Special Reserve for Oil Overcharge Funds without further action of the General Assembly and funds are hereby appropriated from the Special Reserve for Oil Overcharge Funds for the 1991-92 fiscal year and for the 1992-93 fiscal year for that purpose.

Requested by:  Senator Martin of Pitt
––-NORTH CAROLINA MANUFACTURING DIRECTORY PROCEEDS
Sec. 136.  (a) The Department of Economic and Community Development may expend for industrial promotional advertising any amount collected from the sales of the North Carolina Manufacturing Directory above the sum of $155,000 already budgeted for the 1991-92 and 1992-93 fiscal years.
(b)	Beginning October 1, 1991, the Department shall submit quarterly reports to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division.  These reports shall include the amount of proceeds collected from the sales of the Directory and the amount spent on advertising pursuant to the provisions of this section.

Requested by:  Senator Martin of Pitt
––-INDUSTRIAL DEVELOPMENT FUND/LOCAL MATCH
Sec. 137.  Local governments requesting financial assistance from the Industrial Development Fund shall demonstrate to the satisfaction of the Department of Economic and Community Development that it would be an economic hardship for the local government to match State assistance from the Fund with local funds.  The Department shall develop guidelines for determining hardship.

Requested by:  Senator Martin of Pitt
––-BIOTECHNOLOGY CENTER
Sec. 138. (a)	The North Carolina Biotechnology Center may recapture funds spent in support of successful research efforts in the nonacademic private sector.
(b)	The North Carolina Biotechnology Center shall provide funding for biotechnology and related bioscience applications under its Economic and Corporate Development Program.
(c)	Beginning October 1, 1991, the North Carolina Biotechnology Center shall provide quarterly reports on all of the Center's programs to the Joint Legislative Commission on Governmental Operations.  The initial report shall include information on the activities and accomplishments during the past fiscal year, itemized expenditures during the past fiscal year with sources of funding, planned activities and accomplishments for at least the next 12 months, and itemized anticipated expenditures with sources of funding for the next 12 months.  Subsequent reports shall include quarterly updates of the initial report.
(d)	The North Carolina Biotechnology Center shall provide a report containing detailed budget, personnel, and salary information to the Office of State Budget and Management and to the Fiscal Research Division in the same manner as State Departments and agencies in preparation for biennium budget requests.

Requested by:  Senator Martin of Pitt
––-MCNC
Sec. 139.  (a)	MCNC shall present a written report on the progress of the supercomputer program on a quarterly basis to the Joint Legislative Commission on Governmental Operations through fiscal years 1991-92 and 1992-93.  The written reports shall contain at least the following information:  the major accomplishments since the last report; the major activities expected for the project for the next 12 months after the date of the report; the major applications and uses on the supercomputer in the time since the last report; and, the major projected applications and uses on the supercomputer in the next six months after the date of the report.  The report shall constitute a full management and status report on the supercomputer project.
(b)	The Board of Directors of MCNC shall be the governing body for the supercomputer program.
(c) If MCNC specifies a Technical Advisory Council to provide to the supercomputer project, among other things:
(1)	Technical policy and operating procedure advice,
(2)	Advice concerning use of the supercomputing facilities by educational institutions and other groups and individuals,
(3)	Advice and policy suggestions concerning the structures and operations of the supercomputing center and any adjunct institutes, conferences, or consultative committees, and
(4)	Advice and counsel to MCNC or anyone it employs or enters into contract with related to the operation of the supercomputer project,
that Technical Advisory Council shall have an equal number of members appointed from (i) public sector, academic, not-for-profit organizations and (ii) for-profit, private companies by July 31, 1991. The intent of the General Assembly is for one-half of the members of this Technical Advisory Council, or any group directly affiliated with the supercomputer project management group that performs the functions of the technical advisory council as listed in this section, to be current employees of private sector, for-profit corporations by July 31, 1991.
	(d)	It is the intent of the General Assembly that all appropriations to MCNC for all years after the 1990-91 fiscal year for the MCNC basic research program contain the proviso that the appropriated funds are matched on the basis of two non-State dollars ($2.00) for every three State dollars ($3.00).
(e)  Beginning October 1, 1991, MCNC shall provide quarterly reports on all of its programs to the the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division.  These reports shall include information on the activities and accomplishments during the past fiscal year, itemized expenditures during the past fiscal year with sources of funding, planned activities and accomplishments for at least the next 12 months, and itemized anticipated expenditures with sources of funding for the next 12 months.
(f)  MCNC shall provide a report containing detailed budget information to the Office of State Budget and Management in the same manner as State departments and agencies in preparation for biennium budget requests.  Specific salary information will be provided upon written request by the Chairmen of the Joint Legislative Commission on Governmental Operations or the Chairmen of the House Appropriations Committee on Environment, Health, and Natural Resources and the Chairman of the Senate Appropriations Committee on Natural and Economic Resources.

Requested by:  Senator Martin of Pitt
––-MCNC BUDGET LIMITS
Sec. 140. (a) The funds appropriated in this act to MCNC shall be used as follows:
	FY 1991-92	FY 1992-93
Microelectronics Program	$ 6,194,302	$ 6,000,000
Grants Program	      -0-	-0-   
Administration & Support	  2,204,804	  2,000,000
Supercomputer	  5,298,063	  5,224,705
Telecommunications	  2,827,971	  2,775,295
(b)	Of the funds appropriated to MCNC for the Microelectronics Program, $2,000,000 of the total appropriation in each fiscal year is contingent upon a dollar-for-dollar match in non-State funds.
(c)	If MCNC finds it necessary to make changes in the program allocations specified in subsection (a) of this Section, MCNC shall report such changes to the Joint Legislative Commission on Governmental Operations within 30 days of the reallocation.

Requested by:  Senator Martin of Pitt
––-RURAL ECONOMIC DEVELOPMENT CENTER
Sec. 141.  (a)	Of the funds appropriated in this act to the Department of Economic and Community Development, $1,530,627 for fiscal year 1991-92 and $1,514,766 for fiscal year 1992-93 shall be used for a grant-in-aid to the Rural Economic Development Center, Inc., for the administrative costs of the Center and for its pilot projects and research.  No more than $300,000 of the funds appropriated for each fiscal year may be used for the administrative costs of the Rural Economic Development Center, Inc.
(b)	Beginning October 1, 1991, the Rural Economic Development Center, Inc., shall provide quarterly reports on the Center's programs to the Joint Legislative Commission on Governmental Operations. The initial report shall include information on the activities and accomplishments during the past fiscal year, itemized expenditures during the past fiscal year with sources of funding, planned activities and accomplishments for at least the next 12 months, and itemized anticipated expenditures with sources of funding for the next 12 months.  Subsequent reports shall include quarterly updates of the information in the initial report.
(c)	The Rural Economic Development Center, Inc., shall provide a report containing detailed budget, personnel, and salary information to the Office of State Budget and Management in the same manner as State departments and agencies in preparation for biennium budget requests.

Requested by:  Senator Martin of Pitt
––-RURAL ECONOMIC DEVELOPMENT CENTER FUND LIMITATIONS
Sec. 142.  Not more than fifty percent (50%) of the interest earned on State funds appropriated to the Rural Economic Development Center, Inc., may be used by the Rural Economic Development Center, Inc., for administrative purposes, including salaries and fringe benefits.

PART XXI.––-DEPARTMENT OF LABOR

Requested by:  Senator Martin of Pitt
––-FUNDING FOR OSHA ENFORCEMENT POSITIONS
Sec. 143.  The Department of Labor may use funds appropriated to the Department of Labor for the Occupational Safety and Health Act of North Carolina (OSHANC) program to fully fund enforcement personnel in the Compliance Bureau of the OSHANC program, provided the Department of Labor certifies to the Office of State Budget and Management that no federal match is available for the 1991-92 fiscal year and for the 1992-93 fiscal year.

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

Requested by:  Senator Martin of Pitt
––-REDUCTION IN ADMINISTRATIVE SERVICES
Sec. 144.  The Department of Environment, Health, and Natural Resources shall consider abolishing positions in each of the following administrative services areas:
(1)	Computer Systems,
(2)	Fiscal Management,
(3)	Office of the General Counsel,
(4)	General Services,
(5)	Personnel, and
(6)	Planning & Assessment
in order to reduce the budget of administrative services by the sum of $200,000 for the 1991-92 fiscal year and by the sum of $400,000 for the 1992-93 fiscal year.

Requested by:  Senator Martin of Pitt
––-SEPTAGE MANAGEMENT FEES
Sec. 145.  Receipts collected by the Department of Environment, Health, and Natural Resources pursuant to G.S. 130A-291.1 are appropriated to the Department to establish and operate the North Carolina Septage Management Program.

Requested by:  Senator Martin of Pitt
––-AUTHORIZE USE OF WATER QUALITY FEES
Sec. 146.  There is appropriated from the nonreverting account established in G.S. 143-215.3A to the Department of Environment, Health, and Natural Resources a sum not to exceed $2,124,142 for the 1991-92 fiscal year and a sum not to exceed $2,148,017 for the 1992-93 fiscal year for the salaries and the necessary support for up to 49 positions for the 1991-92 fiscal year and the 1992-93 fiscal year in the water quality program.  Water quality fees shall be the only source of funds for these positions and all necessary support.  These positions shall be used to reduce the backlog of permit applications and to improve the rate of compliance of facilities with environmental standards for toxic substances.

Requested by:  Senator Martin of Pitt
––-AUTHORIZE USE OF AIR QUALITY FEES
Sec. 147.  There is appropriated from the nonreverting account established in G.S. 143-215.3A to the Department of Environment, Health, and Natural Resources a sum not to exceed $1,193,340 for the 1991-92 fiscal year and a sum not to exceed $1,487,506 for the 1992-93 fiscal year for the salaries and the necessary support:
(1)	For up to 24 positions for the 1991-92 fiscal year; and
(2)	For up to 29 positions for the 1992-93 fiscal year
in the air quality program.  Air quality fees shall be the only source of funds for these positions and all necessary support.  These positions shall be used to conduct air quality permitting, compliance, and monitoring activities.

Requested by:  Senator Martin of Pitt
––-SUPERFUND PROGRAM
Sec. 148. (a)	The Department of Environment, Health, and Natural Resources may use available funds, with the approval of the Office of State Budget and Management, in order to provide the ten percent (10%) cost share required for Superfund cleanups on National Priority List sites.  These funds may be in addition to those appropriated for this purpose.
(b)	The Department of Environment, Health, and Natural Resources and the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations the amount and the source of the funds used pursuant to subsection (a) of this section within 30 days of the expenditure of these funds. 

Requested by:  Senator Martin of Pitt
––-FOREST DEVELOPMENT ACT FUNDS
Sec. 149.  Notwithstanding the provisions of G.S. 113A-192, the assessment from the primary forest product processors shall be collected for the 1991-92 fiscal year and the 1992-93 fiscal year.  Notwithstanding the provisions of G.S. 113A-180 and G.S. 113A-183(c), all funds accrued to the Forest Development Fund, from whatever source, may be expended pursuant to the provisions of G.S. 113A-193(c) and Article 11 of Chapter 113A of the General Statutes for the 1991-92 fiscal year and the 1992-93 fiscal year.

Requested by:  Senator Martin of Pitt
––-STUDY TERMINATING LEASE WITH FEDERAL GOVERNMENT
Sec. 150.  The Parks and Recreation Division, Department of Environment, Health, and Natural Resources, shall study the desirability and the feasibility of terminating any longterm lease that the State entered into, whereby the State leases federal reservoirs.  The Department shall report its findings and recommendations to the 1991 General Assembly (1992 Regular Session) no later than April 1, 1992. 

Requested by:  Senator Martin of Pitt
––-REVISION OF PARKS FEE SCHEDULE
Sec. 151.  (a)	The Parks and Recreation Division, Department of Environment, Health, and Natural Resources may amend its fee schedule such that an additional sum of $392,300 is raised by such fees.
(b)	Notwithstanding the provisions of G.S. 150B-13, the Department may adopt temporary rules to implement subsection (a) of this section.
(c)	If the Division amends its fee schedule under subsection (a) of this section, the amended fee schedule becomes effective July 1, 1991.

Requested by:  Senator Martin of Pitt
––-TECHNICAL REVIEW COMMITTEE APPOINTMENTS
Sec. 152.  The Soil and Water Conservation Commission shall include the Executive Director of the Wildlife Resources Commission, or his designee, and the Director of the Marine Fisheries Division of the Department of Environment, Health, and Natural Resources, or his designee, among its appointments to the Technical Review Committee, which reviews the technical specifications for the best management practices specified for the Agricultural Cost Share Program for Nonpoint Source Pollution Control.

Requested by:  Senator Martin of Pitt
––-AGRICULTURE COST SHARE PROGRAM
Sec. 153.  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources for the Agriculture Cost Share Program for Nonpoint Source Pollution Control, a sum not to exceed $40,000 for the 1991-92 fiscal year and a sum not to exceed $40,000 for the 1992-93 fiscal year shall be used to fund tide gates in Hyde County in accordance with the match requirements specified in G.S. 143-215.74(b)(6).

Requested by:  Senator Martin of Pitt
––-AUDITS OF SOIL AND WATER DISTRICT BOARDS
Sec. 154.  G.S. 139-7 reads as rewritten:
"§ 139-7. District board of supervisors – appointive members; organization of board; certain powers and duties.
The governing body of a soil and water conservation district shall consist of the three elective supervisors from the county or counties in the district, together with the appointive members appointed by the Soil and Water Conservation Commission pursuant to this section, and shall be known as the district board of supervisors. When a district is composed of less than four counties, the board of supervisors of each county shall on or before October 31, 1978, and on or before October 31 as the terms of the appointive supervisors expire, recommend in writing two persons from the district to the Commission to be appointed to serve with the elective supervisors. If the names are not submitted to the Commission as required, the office shall be deemed vacant on the date the term is set to expire and the Commission shall appoint two persons of the district to the district board of supervisors to serve with the elected supervisors. The Commission shall make its appointments prior to or at the November meeting of the Commission. Appointive supervisors shall take office on the first Monday in December following their appointment. Such appointive supervisors shall serve for a term of four years, and thereafter, as their terms expire, their successors shall serve for a term of four years. The terms of office of all appointive supervisors who have heretofore been lawfully appointed for terms the final year of which presently extends beyond the first Monday in December are hereby terminated on the first Monday in December of the final year of appointment. Vacancies for any reason in the appointive supervisors shall be filled for the unexpired term by the appointment of a person by the Commission from the district in which the vacancy occurs. Vacancies for any reason in the elected supervisors shall be filled for the unexpired term by appointment by the Commission of a person from the county in the district in which the vacancy occurs.
In those districts composed of four or more counties, the Commission may, but is not required to, appoint two persons from the district without recommendation from the board of supervisors, to serve as district supervisors along with the elected members of the board of supervisors. Such appointments shall be made at the same time other appointments are made under this section, and the persons appointed shall serve for a term of four years.
The supervisors shall designate a chairman and may, from time to time, change such designation. A simple majority of the board shall constitute a quorum for the purpose of transacting the business of the board, and approval by a majority of those present shall be adequate for a determination of any matter before the board, provided at least a quorum is present. Supervisors of soil and water conservation districts shall be compensated for their services at the per diem rate and allowed travel, subsistence and other expenses, as provided for State boards, commissions and committees generally, under the provisions of G.S. 138-5; provided, that when per diem compensation and travel, subsistence, or other expense is claimed by any supervisor for services performed outside the district for which such supervisor ordinarily may be appointed or elected to serve, the same may not be paid unless prior written approval is obtained from the Department of Environment, Health, and Natural Resources.
The supervisors may employ a secretary, technical experts, whose qualifications shall be approved by the Department, and such other employees as they may require, and shall determine their qualifications, duties and compensation. The supervisors may call upon the Attorney General of the State for such legal services as they may require. The supervisors may delegate to their chairman, to one or more supervisors, or to one or more agents, or employees such powers and duties as they may deem proper. The supervisors shall furnish to the Soil and Water Conservation Commission, upon request, copies of such ordinances, rules, regulations, orders, contracts, forms, and other documents as they shall adopt or employ, and such other information concerning their activities as it may require in the performance of its duties under this Chapter.
The supervisors shall provide for the execution of surety bonds for all employees and officers who shall be entrusted with funds or property; shall provide for the keeping of a full and accurate record of all proceedings and of all resolutions, regulations, and orders issued or adopted; and shall provide for an annual audit of the accounts of receipts and disbursements.  In any given year, if the supervisors provide for an internal audit, the supervisor serving as chairman shall certify, under oath, that this internal audit is a true and accurate reflection of the accounts of receipts and disbursements, then the supervisors shall not be required, notwithstanding the provisions of G.S. 159-34, to provide for an audit of the accounts of receipts and disbursements by a certified public accountant or by an accountant certified by the Local Government Commission.  Any supervisor may be removed by the Soil and Water Conservation Commission upon notice and hearing, for neglect of duty, incompetence or malfeasance in office, but for no other reason.
The supervisors may invite the legislative body of any municipality or county located near the territory comprised within the district to designate a representative to advise and consult with the supervisors of the district on all questions of program and policy which may affect the property, water supply, or other interests of such municipality or county.
All district supervisors whose terms of office expire prior to the first Monday in January, 1948, shall hold over and remain in office until supervisors are elected or appointed and qualify as provided in this Chapter, as amended. The terms of office of all district supervisors, who have heretofore been elected or appointed for terms extending beyond the first Monday in January, 1948, are hereby terminated on the first Monday in January, 1948."

Requested by:  Senator Martin of Pitt
––-ABOLISH PERINATAL COUNCIL
Sec. 155.  G.S. 130A-128 is repealed.

Requested by:  Senator Martin of Pitt
––-CONTINUE PUBLIC DENTAL HEALTH PROGRAM EMPHASIS
Sec. 156.  From the funds available to the Department of Environment, Health, and Natural Resources, the Department shall administer the public dental health program the primary emphasis of which shall continue to be the delivery of preventive, educational, and dental care services to preschool children and school-age children.

Requested by:  Senator Martin of Pitt
––-MATERNAL AND CHILD HEALTH CARE
Sec. 157. (a) The Department of Environment, Health, and Natural Resources shall ensure that local health departments do not reduce county appropriations for maternal and child health services provided by the local health departments because they have received State appropriations pursuant to this act.
(b) All income earned by local health departments for Maternal and Child Health programs supported in whole or in part from State or federal funds, received from the Department of Environment, Health, and Natural Resources, shall be budgeted and expended by local health departments to further the objectives of the program that generated the income.

Requested by:  Senator Martin of Pitt
––-HEALTH PROMOTION FUNDS
Sec. 158. The Department of Environment, Health, and Natural Resources shall ensure that local health departments do not reduce county appropriations for health promotion services provided by local health departments if they have received State appropriations for this purpose pursuant to this act.

Requested by:  Senator Martin of Pitt
––-NON-MEDICAID REIMBURSEMENT
Sec. 159.  Providers of medical services under the various State programs other than Medicaid offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Environment, Health, and Natural Resources may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days.  When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non-Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one of this section, the Department of Environment, Health, and Natural Resources may negotiate with providers of medical services under the various Environment, Health, and Natural Resources programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes:  contracts or agreements for medical services and purchases of medical equipment and other medical supplies.  These negotiated rates are allowable only to meet the medical needs of its non-Medicaid eligible patients, residents and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs with the exception of Migrant Health, School Health, AIDS Drug Reimbursement Program, diagnostic assessment for infants with sickle cell syndrome, and Home Health shall be as follows:
	Family	All
	Size	Kidney	Other
	1	$ 6,400	$ 4,200
	2	8,000	5,300
	3	9,600	6,400
	4	11,000	7,500
	5	12,000	7,900
	6	12,800	8,300
	7	13,600	8,800
	8	14,400	9,300
The eligibility level each fiscal year for outpatient services for all clients and for inpatient services for children under the age of 5, in the Children's Special Health Services Program shall be one hundred percent (100%) of the federal poverty guidelines as revised annually by the United States Department of Health and Human Services, in effect on July 1 of each fiscal year.

Requested by:  Senator Martin of Pitt
––-ASBESTOS HAZARD MANAGEMENT FUNDS
Sec. 160.  The fees established and collected pursuant to Article 19 of Chapter 130A of the General Statutes are appropriated to the Department of Environment, Health, and Natural Resources to support the Asbestos Hazard Management Program.

Requested by:  Senator Martin of Pitt
––-ADOLESCENT PREGNANCY PREVENTION PROJECTS
Sec. 161.  (a)	Of the funds appropriated in Section 3 of this act to the Division of Maternal and Child Health, Department of Environment, Health, and Natural Resources, $982,768 for the 1991-92 fiscal year and $982,768 for the 1992-93 fiscal year shall be used to fund adolescent pregnancy prevention projects.
(b)	Beginning in fiscal year 1991-92, the Division shall evaluate all of the adolescent pregnancy projects funded as a result of this program at least yearly and shall report its findings to the Commission for Health Services, the Joint Legislative Commission on Governmental Operations, and the Chairmen of the House Appropriations Committee on Environment, Health, and Natural Resources, and the Senate Appropriations Committee on Natural and Economic Resources by April 1 of each year.  Any evaluation of these projects shall include a study of the effectiveness of the project in reducing the pregnancy rate within the target population.
(c)	The Commission for Health Services shall be responsible for monitoring the Division's administration of the Adolescent Pregnancy Prevention Program.  The Division shall implement the following changes in the management and funding of the Adolescent Pregnancy Prevention Program for projects funded from General Fund appropriations and federal block grants:
(1)	Applications.  Any local agency or organization or combination of agencies and organizations may apply to the Division of Maternal and Child Health for an allocation of money to operate a project aimed at preventing adolescent pregnancy. The application shall contain an analysis of the adolescent pregnancy and related problems in the locality the project would serve, and a description of how the project would attempt, over a period of at least five years, to prevent the problems. The application shall state how much money is needed to operate the project and how the money shall be spent. The Division shall conduct annually a proposal-writing session that shall be attended by a representative of any project that wishes to apply for funding; that session shall define the criteria for accountability and evaluation that the Division requires of projects. That session shall also provide information about additional funding sources to which projects might turn to satisfy the matching requirements of subdivision (5) of this section.
(2)	Proposal Requirements. The Division shall apply the following minimum standards to projects applying for first-year funding:
a.	Each project shall have a plan of action that extends for at least five years for prevention of adolescent pregnancy.
b.	Each project shall have realistic, specific, and measurable goals and objectives for the prevention of adolescent pregnancy.
c.	Each project, before submitting its proposal, shall send a representative to the proposal-writing session held by the Division.
(3)	Operating Standards.  The Division shall apply the following minimum operating standards:
a.	Each project shall have a Board of Advisors composed of members from outside the sponsoring agency of the project. The Board of Advisors shall include representatives from at least four of the following: media, government, charitable organizations, private business, medical institutions. The Boards of Advisors shall meet at least quarterly and advise project staff on project policies and operations.
b.	Each project shall comply with reporting, contracting, and evaluation requirements of the Division.
c.	Each project shall define and maintain cooperative ties with other community institutions.
d.	Each project shall demonstrate its ability to attract financial support from sources other than the State, including sources in the local community.
(4)	Criteria for Selection. For first-year funding, the Division shall choose from among the applicants that meet the minimum standards in subdivision (2) of this subsection the best selection of projects according to the following criteria:
a.	Adequacy of proposed staff to meet project objectives,
b.	Appropriateness of project strategies to reduce adolescent pregnancy,
c.	Level of community support, including documentation from the appropriate local government entity that opportunity has been given for citizen input into the proposed program, and that there is community support for the proposal,
d.	Degree of need of the locality, including that the county has a significant adolescent pregnancy problem as evidenced by its attributable risk score developed by the Division of Statistics and Information Services, and
e.	Other appropriate criteria.
	The Division shall make its recommendations for funding to the Commission for Health Services.  The Commission shall make the final determination of which projects are to be funded. The Commission shall consider the recommendations of the Division but shall not be bound by them.  The Commission shall notify the projects that are to be funded by June 1 of each year.
(5)	Schedule of Funding.  If the Commission, upon consultation with the Division, finds that a project it has chosen for first-year funding continues to meet the operating standards of subdivisions (2) and (3) of this subsection, funding for that project shall continue, to the extent of available money, for an additional four years.  The level of funding provided by the Division to approved projects shall be set according to the following schedule:
a.	First year, eighty percent (80%) of the project's annual budget not to exceed the maximum award established by the Commission for Health Services,
b.	Second year, ninety percent (90%) of the State appropriations or federal block grant funds awarded in the first year, 
c.	Third year, seventy-five percent (75%) of the State appropriations or federal block grant funds awarded in the first year,
d.	Fourth year, sixty-five percent (65%) of the State appropriations or federal block grant funds awarded in the first year, and
e.	Fifth year, fifty percent (50%) of the State appropriations or federal block grant funds awarded in the first year.
	The portion of a project's budget that must come from sources other than State or federal block grant funds may be provided as in-kind contributions as well as cash.
(6)	Five-Year Limit on Funding. No project shall receive State funding if it has previously received State funding for five full years.  Any project that has received State funding before July 1, 1990, will be eligible for consideration for an additional five years' State support, according to the schedule.  The Commission may fund any such project that meets the minimum standards if it determines, after considering the experience and impact of the project and measuring its application against those of other applicants, that it should be funded.
(7)	Maximum Level of Funding.  The Commission for Health Services shall by rule determine the maximum annual amount that may be made to any one project.

Requested by:  Senator Martin of Pitt
––-INFECTION CONTROL PROGRAM/FUNDS TRANSFER
Sec. 162.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources, Division of Epidemiology, for the 1991-93 biennium, $85,274 shall be transferred in each fiscal year to the University of North Carolina at Chapel Hill for the School of Medicine of the University of North Carolina at Chapel Hill.  Funds transferred pursuant to this section shall be used to support the Health Care Facilities Infection Control Program in investigating and controlling nosocomial infections in hospitals, long-term care facilities, and other medical facilities in cooperation with the Division of Epidemiology.  Funds transferred shall also be used to provide training and consultation to hospitals, long-term care facilities, and other medical facilities to prevent and control nosocomial infections.

PART XXIII.––-MISCELLANEOUS PROVISIONS

Requested by:  Senators Basnight, Plyler
––-EFFECT OF HEADINGS
Sec. 163.  The headings to the Parts and sections of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act.

Requested by:  Senators Basnight, Plyler
––-EXECUTIVE BUDGET ACT REFERENCE
Sec. 164.  The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

Requested by:  Senators Basnight, Plyler
––-COMMITTEE REPORT
Sec. 165.  The Senate Appropriations Committee Report on Base Budget Reductions dated April 25, 1991, which was distributed in the Senate and used to explain this act, shall indicate action by the General Assembly on this act and shall therefore be used to construe this act, as provided in G.S. 143-15 of the Executive Budget Act, and for these purposes shall be considered a part of this act.

Requested by:  Senators Basnight, Plyler
––-MOST TEXT APPLIES ONLY TO 1991-93
Sec. 166.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1991-93 biennium, the textual provisions of this act shall apply only to funds appropriated for and activities occurring during the 1991-93 biennium.

Requested by:  Senators Basnight, Plyler
––-SEVERABILITY CLAUSE
Sec. 167.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of the act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Requested by:  Senators Basnight, Plyler
––-EFFECTIVE DATE
Sec. 168.  Except as otherwise provided, this act becomes effective July 1, 1991. This act becomes effective if and only if a subsequent act or acts become effective that raise sufficient revenue to balance the base budget enacted in this act.