GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	3 

SENATE BILL 927
Appropriations Committee Substitute Adopted 7/16/92
Third Edition Engrossed 7/16/92

Short Title:  Legislative Budget Commission.	(Public)
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Sponsors:
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Referred to:  
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May 13, 1991

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE LEGISLATIVE BUDGET COMMISSION.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 120 of the General Statutes is amended by adding a new Article to read:
“ARTICLE 22.
"Legislative Budget Commission.
"§ 120-192.  Establishment of Commission; purpose.
There is established the Legislative Budget Commission.  The purpose of the Commission is to provide to the General Assembly the information it needs (i)	to consider the comprehensive budget of the anticipated revenue and proposed expenditures of the State submitted to it by the Governor, and (ii) to enact a balanced budget for the State.
"§ 120-193.  Definitions.
As used in this Article:
(1)	‘State agency' means all institutions, departments, bureaus, boards, commissions, and agencies of the State and all private corporations, persons, and organizations of all kinds, that are subject to the provisions of the Executive Budget Act.
(2)	‘State funds' means State funds as defined in G.S. 143-1.
"§ 102-194.  Appointment of members; terms of office.
The Commission shall consist of eight members of the Senate appointed by the President Pro Tempore of the Senate, at least one of whom shall be a chairman of an appropriations committee and at least one of whom shall be a chairman of a finance committee, and eight members of the House of Representatives appointed by the Speaker of the House of Representatives, at least one of whom shall be a chairman of an appropriations committee and at least one of whom shall be a chairman of a finance committee.  The minority party in the Senate and the House shall have proportional representation on the Commission.  Members shall serve two-year terms beginning and ending on the convening of the General Assembly in each odd-numbered year, except that the terms of the initial members shall begin on appointment and end on the day of the convening of the 1993 General Assembly.  Members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee.
A member continues to serve until his successor is appointed.  A vacancy shall be filled within 30 days by the officer who made the original appointment.
"§ 120-195.  Powers and duties of the Commission.
The Commission is authorized:
(1)	To study on a continuing basis the budgeting operations and procedures of the State;
(2)	To review the budget, expenditures, and future fiscal needs of all State agencies;
(3)	To require State agencies to submit to the Commission, in any form and at any time as the Commission directs, any information the Commission desires in relation to the agencies' activities or fiscal affairs;
(4)	To require the Director of the Budget, the State Auditor, and the State Controller to furnish the Commission any special or periodic audits, financial statements, or program evaluations as the Commission may request;
(5)	To require all State agencies that issue negotiable revenue bonds to report their intent to issue and their reissuance of the bonds;
(6)	To require the Secretary of Revenue to submit to the Commission a copy of (i) the biennial State tax report, (ii) the Department's proposed amendments to the Revenue and Machinery Acts, and (iii) the Department's estimates of revenues;
(7)	To require the State Treasurer to (i) report monthly on the investment earnings of all funds under his control, (ii) provide his estimate of investment earnings for the upcoming fiscal year, and (iii) provide any information requested on fund investments;
(8)	To require the Board of Governors of The University of North Carolina to submit a copy of the Board's long-range plans for a coordinated system of higher education;
(9)	To require the Board of Governors of The University of North Carolina to report prior to any allocation or reallocation of any lump-sum appropriations to the University and prior to any transfer of funds from one institution to another;
(10)	To require the Director of the Budget to report prior to authorizing the trustees of any endowment fund to satisfy any expense or financial obligation of the State from any source other than the fund;
(11)	To require all State agencies to report prior to closing a State institution that is funded in whole or in part with State or federal funds;
(12)	To require the North Carolina Low-Level Radioactive Waste Management Authority and the North Carolina Hazardous Waste Management Commission to report prior to increasing total outstanding indebtedness, excluding bonding indebtedness, to over five hundred thousand dollars ($500,000);
(13)	To require the North Carolina Energy Development Authority to report prior to spending funds from the Energy Fund and prior to pledging the assets of the Energy Fund as security for bonds;
(14)	To examine any State agency, inspect its property, and inquire into its method of operation and management;
(15)	To make a biennial inspection of those physical facilities of the State it deems necessary;
(16)	To require all State agencies receiving State funds or requesting State funds to furnish the Commission with all the information, data, and estimates it may request with reference to past, present, and future appropriations and expenditures, receipts, revenues, and income;
(17)	To require local governments that spend State funds to operate local programs to provide necessary information to the Commission to establish the necessary continuation and expansion costs;
(18)	To require the Director of the Budget to report on requests to increase the cost of or decrease the scope of a capital improvement project prior to acting on the request;
(19)	To require the Director of the Budget to report on requests to authorize the construction of a capital improvement project not specifically authorized by the General Assembly, prior to acting on the request;
(20)	To require the Director of the Budget to report prior to taking any actions to reduce appropriations pro rata pursuant to G.S. 143-25 and to report on any actions taken in accordance with Article III, Section 5(3) of the Constitution to ensure that the budget is balanced;
(21)	To review copies submitted to the Office of State Budget and Management of all applications and requests for non-State funds for projects and programs that do or may impose upon the State any substantial financial obligation at the time of or subsequent to the acceptance of any funds upon the application or request;
(22)	To review any preliminary studies and cost estimates for capital construction prepared by the Department of Administration at the request of any State agency;
(23)	To review any appropriations requests for grants-in-aid submitted by non-State health and welfare agencies through the Department of Human Resources;
(24)	To prepare a report in the form of a proposed budget for the State;
(25)	To report the results of its work to the General Assembly; and
(26)	To request any other information and perform any studies the Commission deems necessary to accomplish the purpose of this Article.
"§ 120-196.  Organization of Commission.
(a)	The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochairman of the Legislative Budget Commission.  Either of the cochairmen may call a meeting of the Commission.
(b)	While in the discharge of its official duties, the Commission has the powers of a joint committee under G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4.
(c)	Members of the Commission shall receive subsistence and travel expenses as provided in G.S. 120-3.1.  The Commission may contract for consultants or hire employees in accordance with G.S. 120-32.02.  The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist the Commission in its work.  Upon the direction of the Legislative Services Commission, the Supervisors of Clerks of the Senate and of the House of Representatives shall assign clerical staff to the Commission.  The expenses for clerical employees shall be borne by the Commission."
Sec. 2. G.S. 143-318.18 is amended by adding a new subdivision to read:
"(4d)	The Legislative Budget Commission."
Sec. 3.  The Legislative Services Commission may use funds available to the General Assembly for the 1992-93 fiscal year for the operations of the Legislative Budget Commission.
Sec. 4.  This act is effective upon ratification.