GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 1323

Short Title: Repub. Caucus '93 Budget. 	(Public) 
─────────────────────────────────────── 
Sponsors: Representative Balmer.
─────────────────────────────────────── 
Referred to:  Finance.
─────────────────────────────────────── 

May 10, 1993

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR REVENUE FAIRNESS, TO MAKE BASE BUDGET AND EXPANSION BUDGET APPROPRIATIONS FROM THE GENERAL FUND FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS AND AGENCIES, AND TO EFFECT OTHER CHANGES TO THE OPERATION OF STATE GOVERNMENT.
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 requires 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 funds at the end of each fiscal year.

TITLE OF ACT
Sec. 2.  This act shall be known as "The Revenue Fairness and Appropriations Act of 1993".  This act contains revenue fairness provisions, base and expansion budget appropriations for current operations of State government, and provisions that effect other changes to State government.

TITLE I - REVENUE FAIRNESS

TABLE OF CONTENTS
PART 1.  PHASE OUT FOOD TAX
PART 2.  UNIVERSAL CHILD CARE CREDIT
PART 3.  REDUCE CORPORATE INCOME TAX
PART 4.   EFFECTIVE DATES

PART 1.  PHASE OUT FOOD TAX

Sec. 3.  Effective July 1, 1993, G.S. 105-164.4(a) is amended by adding a new subdivision to read:
"(1e)	The following rates apply to the sales price of food that would be exempt from the tax imposed by this Article if it were purchased with coupons issued under the Food Stamp Program, 7 U.S.C. § 51:
Effective Dates	Rate
July 1, 1993, through June 30, 1994 – three percent (3%)
July 1, 1994, through June 30, 1995 – two percent (2%)
July 1, 1995, through June 30, 1996 – one percent (1%)."
(b)	Effective July 1, 1996, G.S. 105-164.4(a)(1e), as enacted by this section, is repealed.
Sec. 4.  Effective July 1, 1996, Article 5 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-164.13B. Food exempt from State tax only.
The taxes imposed by this Article do not apply to food that is not otherwise exempt pursuant to G.S. 105-164.13 but would be exempt pursuant to G.S. 105-164.13 if it were purchased with coupons issued under the Food Stamp Program, 7 U.S.C. § 51."
Sec. 5.  Effective July 1, 1993, G.S. 105-465 reads as rewritten:
"§ 105-465.  County election as to adoption of local sales and use tax.
The board of elections of any county, upon the written request of the board of county commissioners thereof, or upon receipt of a petition signed by qualified voters of the county equal in number to at least fifteen percent (15%) of the total number of votes cast in the county, at the last preceding election for the office of Governor, shall call a special election for the purpose of submitting to the voters of the county the question of whether a one percent (1%) sales and use tax as hereinafter provided will be levied.
The special election shall be held under the same rules and regulations applicable to the election of members of the General Assembly. No new registration of voters shall be required. All qualified voters in the county who are properly registered not later than 21 days (excluding Saturdays and Sundays) prior to the election shall be entitled to vote at said election. The county board of elections shall give at least 20 days' public notice prior to the closing of the registration books for the special election.
The county board of election shall prepare ballots for the special election.  The question presented on the ballot shall be 'FOR one percent (1%) local sales and use tax on items subject to State sales and use tax at the general State rate and on food' or  'AGAINST one percent (1%) local sales and use tax on items subject to State sales and use tax at the general State rate and on food'.
The county board of elections shall fix the date of the special election; provided, however, that the special election shall not be held on the date of any biennial election for county officers, nor within 60 days thereof, nor within one year from the date of the last preceding special election under this section."
Sec. 6.  Effective July 1, 1993, G.S. 105-467 reads as rewritten:
"§ 105-467.  Scope of sales tax.
The sales tax that may be imposed under this Article is limited to a tax at the rate of one percent (1%) of the following:
(1)	The sales price of tangible personal property subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(1) and (a)(4b).
(2)	The gross receipts derived from the lease or rental of tangible personal property when the lease or rental of the property is subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(2).
(3)	The gross receipts derived from the rental of any room or other accommodations subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(3).
(4)	The gross receipts derived from services rendered by laundries, dry cleaners, and other businesses subject to the general rate of sales tax imposed by the State under G.S. 105-164.4(a)(4).
(5)	The sales price of food that is not otherwise exempt from tax pursuant to G.S. 105-164.13 but would be exempt from the State sales and use tax pursuant to G.S. 105-164.13 if it were purchased with coupons issued under the Food Stamp Program, 7 U.S.C. § 51.
The sales tax authorized by this Article does not apply to sales that are taxable by the State under G.S. 105-164.4 but are not specifically included in subdivisions (1) through (5) of this section.
The State exemptions and exclusions contained in G.S. 105-164.13 and the State refund provisions contained in G.S. 105-164.14 apply to the local sales and use tax authorized to be levied and imposed under this Article.  A taxing county may not allow an exemption, exclusion, or refund that is not allowed under the State sales and use tax.
The local sales tax authorized to be imposed and levied under this Article applies to taxable transactions by retailers whose place of business is located within the taxing county.  For the purpose of this Article, the situs of a transaction is the location of the retailer's place of business."
Sec. 7.  Effective July 1, 1993, G.S. 105-468 reads as rewritten:
"§ 105-468.  Scope of use tax.
The use tax authorized by this Article is a tax at the rate of one percent (1%) of the cost price of each item or article of tangible personal property that is not sold in the taxing county but is used, consumed, or stored for use or consumption in the taxing county.  The tax applies to the same items that are subject to tax under G.S. 105-467.
Every retailer who is engaged in business in this State and in the taxing county and is required to collect the use tax levied by G.S. 105-164.6 shall collect the one percent (1%) use tax when the property is to be used, consumed, or stored in the taxing county. The use tax contemplated by this section shall be levied against the purchaser, and the purchaser's liability for the use tax shall be extinguished only upon payment of the use tax to the retailer, where the retailer is required to collect the tax, or to the Secretary of Revenue, or to the taxing county, as appropriate, where the retailer is not required to collect the tax.
Where a local sales or use tax has been paid with respect to tangible personal property by the purchaser, either in another taxing county within the State, or in a taxing jurisdiction outside the State where the purpose of the tax is similar in purpose and intent to the tax which may be imposed pursuant to this Article, the tax paid may be credited against the tax imposed under this section by a taxing county upon the same property.  If the amount of sales or use tax so paid is less than the amount of the use tax due the taxing county under this section, the purchaser shall pay to the Secretary of Revenue or to the taxing county, as appropriate, an amount equal to the difference between the amount so paid in the other taxing county or jurisdiction and the amount due in the taxing county.  The Secretary of Revenue or the taxing county, as appropriate, may require such proof of payment in another taxing county or jurisdiction as is deemed to be necessary.  The use tax levied under this Article is not subject to credit for payment of any State sales or use tax not imposed for the benefit and use of counties and municipalities.  No credit shall be given under this section for sales or use taxes paid in a taxing jurisdiction outside this State if that taxing jurisdiction does not grant similar credit for sales taxes paid under this Article."
Sec. 8.  Effective July 1, 1993, the first paragraph of Section 4 of Chapter 1096 of the 1967 Session Laws, as amended, is amended as follows:
(1)	By deleting the word "and" before subdivision (4).
(2)	By changing the period at the end of subdivision (4) to a semicolon and adding the word "and".
(3)	By adding a new subdivision to read:
"(5)	The sales price of food that is not otherwise exempt from tax pursuant to G.S. 105-164.13 but would be exempt from the State sales and use tax pursuant to G.S. 105-164.13 if it were purchased with coupons issued under the Food Stamp Program, 7 U.S.C. § 51."
Sec. 9.  Effective July 1, 1993, Section 5 of Chapter 1096 of the 1967 Session Laws is amended by deleting the first sentence of that section and substituting the following sentences to read:
"The use tax that Mecklenburg County may impose under this division is a tax at the rate of one percent (1%) of the cost price of each item or article of tangible personal property that is not sold but is used, consumed, or stored for use or consumption in Mecklenburg County.  The tax applies to the same items that are subject to tax under Section 4 of this act."
Sec. 10.  Approval under Article 39, 40, or 42 of Chapter 105 of the General Statutes, or under the Mecklenburg County Sales and Use Tax Act, Chapter 1096 of the 1967 Session Laws, as amended, of local sales and use taxes on items subject to State sales and use tax at the general State rate constitutes approval of local sales and use taxes on food.

PART 2.  UNIVERSAL CHILD CARE CREDIT

Sec. 11.  Division II of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-151.11A.  Universal child care credit.
(a)	There is allowed as a credit against the tax imposed by this Division an amount equal to two hundred sixty dollars ($260.00) for each of a taxpayer's children under the age of six that the taxpayer claims as a dependent under section 151 of the Code for the taxable year.  For the purpose of this section, a taxpayer's child includes the taxpayer's daughter, stepdaughter, son, or stepson.
(b)	The credit allowed by this section may not exceed the amount of tax imposed by this Division for the taxable year reduced by the sum of all credits allowable, except for payments of tax by or on behalf of the taxpayer.  A taxpayer who is eligible for the credit allowed under this section is not eligible for the credit allowed under G.S. 105-151.11."
Sec. 12.  G.S. 105-151.11(e) reads as rewritten:
"(e)	No credit shall be allowed under this section with respect to employment-related expenses paid by a nonresident of this State.  A taxpayer who is eligible for the credit allowed under G.S. 105-151.11A is not eligible for the credit allowed under this section."

PART 3.  REDUCE CORPORATE INCOME TAX

Sec. 13.  G.S. 105-130.3 reads as rewritten:
"§ 105-130.3.  Corporations.
A tax is imposed on the State net income of every C Corporation doing business in this State at seven percent (7%) of the corporation's State net income.  An S Corporation is not subject to the tax levied in this section."
Sec. 14.  G.S. 115C-546.1 reads as rewritten:
"§ 115C-546.1.  Creation of Fund; administration.
(a)	There is created the Public School Building Capital Fund.  The Fund shall be used to assist county governments in meeting their public school building capital needs.
(b)	Each calendar quarter, the Secretary of Revenue shall remit to the State Treasurer for credit to the Public School Building Capital Fund an amount equal to one-fourteenth (1/14) of the net collections received during the previous quarter by the Department of Revenue under G.S. 105-130.3 minus two million five hundred thousand dollars ($2,500,000).  All funds deposited in the Public School Building Capital Fund shall be invested as provided in G.S. 147-69.2 and G.S. 147-69.3.
	(c)	The Fund shall be administered by the Office of State Budget and Management."

PART 4.  EFFECTIVE DATES

Sec. 15.  Part 1 of this title becomes effective July 1, 1993, and applies to sales made on or after that date.  Part 2 of this title is effective for taxable years beginning on or after January 1, 1993.  G.S. 115C-546.1, as rewritten in Part 3 of this title becomes effective October 1, 1993, and applies to remittances made on or after that date; the remainder of Part 3 of this title is effective for taxable years beginning on or after January 1, 1993. 

TITLE II - CURRENT OPERATIONS

PART 5.  CURRENT OPERATIONS/GENERAL FUND

Sec. 16.   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, 1995, according to the schedule that follows.  Amounts set out in brackets are reductions from General Fund appropriations for the 1993-94 and the 1994-95 fiscal years.
Appropriations made in this section are adjusted in Section 17 of this act to reflect Government Performance Audit Committee recommendations.

Current Operations - General Fund	1993-94	1994-95

General Assembly	$   20,744,031 $   24,233,391

Judicial Department	225,455,954 228,059,144

Office of the Governor
01.	Office of the Governor	4,541,499 4,560,579
02.	Office of State Budget
and Management	3,303,649 3,424,900
03.	Office of State Planning	1,491,583 1,491,893

Office of the Lieutenant Governor	534,880 536,703

Department of Secretary of State	4,064,763 4,028,444

Department of State Auditor	7,172,022 7,207,956

Department of State Treasurer
01.	State Treasurer	5,328,087 5,333,773
02.	Special Contributions	5,274,131 5,274,131

Department of Public Education
01.	Public Instruction	39,835,348 39,864,932
02.	Public School Fund	3,480,833,084 3,538,882,545
Total Department of Public
  Education	3,520,668,432 3,578,747,477

Department of Justice	52,534,578 51,263,987

Department of Administration	48,230,200 49,314,499

Department of Agriculture	41,540,043 41,722,492

Department of Labor	11,398,020 11,391,955

Department of Insurance	12,416,179 12,431,124

Department of Transportation
01.	Aeronautics	10,459,740 10,459,740
02.	Aid to Railroads	97,000 97,000
Total Department of
Transportation	10,556,740 10,556,740

Department of Environment, Health, and
Natural Resources	195,013,817 199,267,675

Rules Review Commission	255,878 255,955

Department of Human Resources
01.	DHR - Secretary	11,685,867 12,193,208
02.	Division of Aging	10,671,854 10,672,283
03.	Jordan Adams Inflationary Reserve	1,278,307 2,573,234
04.	Schools for the Deaf and
Hard of Hearing	20,751,688 20,467,840
05.	Social Services	182,404,277 188,095,904
06.	Medical Assistance	887,402,952 1,038,920,954
07.	Social Services - State Aid to
Non-State Agencies	6,277,843 6,277,843
08.	Division of Services for the Blind	13,183,747 13,307,850
09.	Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services	426,887,375 438,515,627
10.	Division of Facility Services	62,861,272 72,651,380
11.	Division of Vocational
Rehabilitation Services	22,316,975 22,342,763
12.	Division of Youth Services	51,457,001 51,547,163
Total Department of Human Resources	1,697,179,158 1,877,566,049

Department of Correction	561,786,791 599,838,952

Department of Commerce	25,590,856 25,614,745

Department of Revenue	56,966,875 59,981,679

Department of Cultural Resources	42,210,249 42,874,742

Department of Crime Control
and Public Safety	26,184,688 26,161,866

Office of the State Controller	12,635,053 12,482,882

University of North Carolina - Board
of Governors
01.	General Administration	17,044,666 17,132,911
02.	University Institutional
Program	(19,178,732) (17,173,858)
03.	Related Educational Programs	47,491,869 47,721,735
04.	University of North Carolina
at Chapel Hill
a.  Academic Affairs	134,666,424 136,655,734
b.  Health Affairs	107,813,363 109,692,675
c.  Area Health Education
    Centers	31,388,997 31,377,011
05.	North Carolina State University
at Raleigh
a.  Academic Affairs	175,807,410 176,430,541
b.  Agricultural Research Service	35,498,750 35,520,443
c.  Agricultural Extension Service	27,704,291 27,672,954
06.	University of North Carolina at
Greensboro	54,464,433 54,647,622
07.	University of North Carolina at
Charlotte	58,365,780 58,590,961
08.	University of North Carolina at
Asheville	16,860,810 16,949,777
09.	University of North Carolina at
Wilmington	33,233,359 33,445,139
10.	East Carolina University
a.  Academic Affairs	73,845,437 74,383,537
b.  Division of Health Affairs	52,344,058 53,518,533
11.	North Carolina Agricultural and
Technical State University	40,286,800 40,481,673
12.	Western Carolina University	36,113,179 36,117,076
13.	Appalachian State University	52,092,413 52,164,230
14.	Pembroke State University	16,248,252 16,750,775
15.	Winston-Salem State University	16,211,059 16,335,865
16.	Elizabeth City State
University	15,330,727 15,329,290
17.	Fayetteville State University	19,112,872 19,483,189
18.	North Carolina Central
University	27,689,227 27,897,386
19.	North Carolina School of the
Arts	7,882,152 7,901,217
20.	North Carolina School of
Science and Mathematics	7,192,927 7,223,028
21.	UNC Hospitals at Chapel Hill	41,154,272 42,400,816
Total University of North
Carolina - Board of Governors	1,126,664,795 1,138,650,260

Department of Community Colleges	399,468,963 438,391,821

State Board of Elections	529,173 529,508

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

Reserve for Salary Increase	186,200,000 190,700,000

Delete Noncritical Positions	(70,010,288) (70,010,288)

Reduce Contract Service Line-Items	(51,467,465) (51,467,465)

Reserve for Salary Adjustments	500,000 500,000

Reserve for Lowest Paid Employees	1,400,724 1,400,724

Reserve for OSHA - Bloodborne Pathogens	2,000,000 2,000,000

Reserve for Retiree 30% Reduction	(10,000,000) (10,000,000)

Debt Service	92,263,558 89,113,783

Local Government Shared Revenue	     236,824,154      236,824,154

SUBTOTAL CURRENT OPERATIONS –
GENERAL FUND	$8,508,424,599 $8,851,117,277

Sec. 17. (a) GPAC Revenue Increases - Tax and nontax revenues are increased to effect the recommendations of the Government Performance Audit Committee as contained in House Bill 345 according to the following schedule:
Department	Program	1993-94	1994-95

Purchasing	Sale of State Surplus
Facility and Land	$1,700,000	    -
Organization
and Staffing	Department of Revenue
Field Operations	9,000,000	9,000,000

TOTAL REVENUE INCREASES	$10,700,000	$9,000,000

(b)	GPAC Program Changes - The appropriations made in Section 16 of this act are adjusted to reflect savings identified by the Government Performance Audit Committee recommendations as contained in House Bill 345, according to the schedule that follows.  Amounts set out in brackets are increases to General Fund appropriations for the 1993-94 and the 1994-95 fiscal years that are needed to effect these recommendations.
Department	Program	1993-94	1994-95

Emp. Benefits	Implement PPO Program	$9,700,000	$15,000,000
Implement Expanded
Catastrophic care
Program  	$2,100,000	$14,000,000
Purchasing	Reduce Inventories	$4,500,000	$4,500,000
Consolidate Warehouse
Staff	$100,000	$100,000
Info. Tech.	STS Should Proceed with
Planning	$0	$0
Consolidate Networks	         $0	$400,000
Health &
Human Serv.	State Mental Hlth.
Facilities	$5,700,000	$600,000
Developmental Disabil.
Services	$4,500,000	$5,000,000
Alcohol, Drug Abuse
Centers	$600,000	$1,200,000
Schools for Deaf
	 Children	$900,000	$900,000
Child Support 
Enforcement	$7,200,000	$7,200,000
DHR Organization
and Staffing	$1,100,000	$1,100,000
Medicaid	Medicaid Expenditures
and Coverage	$2,200,000	$2,400,000
Medicaid Reimbursement
of Inpatient Hospital
Services	$3,700,000	$17,600,000
Medicaid Reimbursement
of Outpatient Hospital
Services	$200,000	$800,000
Medicaid Reimbursement
of Nursing Facility
Services	$5,400,000	$13,700,000
Physician Services Provided
under Medicaid	$2,000,000	$1,800,000
Medicaid Reimbursement
for Prescription
Drugs	$6,300,000	$7,200,000
Health Care for DHR
Groups	$5,700,000	$9,000,000
Certificate of Need	$2,300,000	$4,000,000
Managed Care Strategies
for North Carolina	($400,000)	($1,200,000)
State Purchase of Health
Care	$500,000	$1,100,000
Economic 
Development	Strategic Planning
Process	($300,000)	($300,000)
Coordination and
Organization of 
ECD Programs	$200,000	$200,000
Regional Office 
Organization and
Staffing	$200,000	$200,000
Education	Governance Structure
for Public Ed.	$800,000	$800,000
Organization and
Staffing	$3,700,000	$3,700,000
Funding Initiatives
in Public Ed.	$57,826,484	$59,110,738
Reform Initiatives	($400,000)	($400,000)
Tuition & Fees - 
UNC & NCCCS	$20,800,000	$20,800,000
Organization
and Staffing	Assessment of State
Organization
Structure	$1,400,000	$1,400,000
Organization Assessment
of State of State Admin.
Structure	$300,000	$300,000
Department of Revenue
Field Operations	$400,000	$1,100,000
Retiree Medical
Program	$17,500,000	$18,900,000
	                  	                  
SUBTOTAL	$166,726,484	$212,210,738

PART 6. CURRENT OPERATIONS/HIGHWAY FUND

Sec. 18.  Appropriations from the Highway Fund of the State are made for the biennium ending June 30, 1995, according to the schedule that follows:

Current Operations - Highway Fund	1993-94	1994-95

Department of Crime Control
and Public Safety
01.	Additional Highway Patrol
troopers	$2,539,922$4,700,485
02.	New Headquarters for
Troop H	700,339799,198
Total Department of Crime Control	$3,240,261$5,499,683

TOTAL CURRENT OPERATIONS-
HIGHWAY FUND	$3,240,261$5,499,683
PART 7.  GENERAL PROVISIONS

SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS/AUTHORIZATION FOR EXPENDITURES
Sec. 19.  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 shall not be spent in a manner that would cause a deficit in expenditures.
Pursuant to G.S. 143-34.2, State departments, agencies, institutions, boards, or commissions may make application for, receive, or disburse any form of non-State aid.  All non-State monies received shall be deposited with the State Treasurer unless otherwise provided by State law.  These funds shall be expended in accordance with the terms and conditions of the fund award that are not contrary to the laws of North Carolina.

INSURANCE AND FIDELITY BONDS
Sec. 20.  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.

AUTHORIZED TRANSFERS
Sec. 21.  The Director of the Budget may transfer to General Fund budget codes from the General Fund Salary Adjustment Reserve appropriation, and may transfer to Highway Fund budget codes from the Highway Fund Salary Adjustment Reserve 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.

EXPENDITURES OF FUNDS IN RESERVES LIMITED
Sec. 22.  All funds appropriated by this act into reserves shall be expended only for the purposes for which the reserves were established.

PART 8.  GENERAL ASSEMBLY

Requested by: Representative Balmer
LEGISLATIVE APPROPRIATIONS REVERT LIKE OTHER AGENCIES' APPROPRIATIONS
Sec. 23.  G.S. 143-18 reads as rewritten:
"§ 143-18.  Unencumbered balances to revert to treasury; capital appropriations excepted.
All unencumbered balances of maintenance appropriations shall revert to the State treasury to the credit of the general fund or special funds from which the appropriation and/or appropriations, were made and/or expended, at the end of each fiscal year; except that capital expenditures for the purchase of land, the erection of buildings, new construction or renovations in progress shall continue in force until the attainment of the object or the completion of the work for which the appropriations are made.
As used in this section, "unencumbered" means not obligated in the form of purchase orders, contracts, renovations in progress or salary commitments.  No purchase orders, contracts, renovations in progress, or salary commitments shall be entered into during a fiscal year unless sufficient funds are available within the purpose for which the funds were appropriated by the General Assembly or as authorized by the Director of the Budget as allowed by law."

PART 9.  PUBLIC SCHOOLS

Requested by:  Representative Balmer
COMBINE FUNDING CATEGORIES IN THE PUBLIC SCHOOL FUND
Sec. 24. (a)	Two existing funding categories in the Public School Fund, 6025 - Classroom Teachers and 6026 - Enhancement Teachers, are combined into a single category for classroom teachers.
(b) Three existing funding categories in the Public School Fund, 6015 - Clerical, 6043 - Teacher Assistants, and 6044 - Custodians, are combined into a single category for school-based noninstructional personnel.  The total amount appropriated for this category in this act reflects a fifteen percent (15%) base budget reduction for each year of the biennium.

Requested by:   Representative Balmer
TEACHER SALARY FUNDS
Sec. 25. (a)	Of the funds appropriated to the Reserve for Salary Increases for Teachers in this act, the State Board of Education shall use the sum of twenty-three million three hundred thousand dollars ($23,300,000) for the 1993-94 fiscal year and the sum of twenty-three million three hundred thousand dollars ($23,300,000) for the 1994-95 fiscal year to grant a one-step increment, effective July 1, 1993, to State-paid employees paid on the teacher salary schedule.
(b)	Of the funds appropriated to the Reserve for Salary Increases for Teachers in this act, the State Board of Education shall use the sum of nineteen million three hundred thousand dollars ($19,300,000) for the 1993-94 fiscal year and the sum of nineteen million three hundred thousand dollars ($19,300,000) for the 1994-95 fiscal year to increase the entry level step on the teacher salary schedule applicable to teachers with "A"certificates to two thousand two dollars ($2,002) a month and to make corresponding changes to the remainder of the teacher salary schedule.  These changes shall become effective July 1, 1993.
(c)	Of the funds appropriated to the Department of Public Education, Aid to Local School Administrative Units, in this act, the sum of thirty-eight million eight hundred thousand dollars ($38,800,000) for the 1993-94 fiscal year and the sum of thirty-eight million eight hundred thousand dollars ($38,800,000) for the 1994-95 fiscal year shall be used for differentiated pay.

Requested by:  Representative Balmer
APPOINT SUPERINTENDENT OF PUBLIC INSTRUCTION
Sec. 26.  (a)	Section 4(2) of Article IX of the Constitution reads as rewritten:
"(2)	Superintendent of Public Instruction.  The Superintendent of Public Instruction shall be the secretary and chief administrative officer of the State Board of Education. The Superintendent shall be appointed by the State Board of Education and shall serve at the pleasure of the State Board of Education."
(b)	Section 7(1) of Article III of the Constitution reads as rewritten:
"(1)	Officers.  A Secretary of State, an Auditor, a Treasurer, an Attorney General, a Commissioner of Agriculture, a Commissioner of Labor, and a Commissioner of Insurance shall be elected by the qualified voters of the State in 1972 and every four years thereafter, at the same time and places as members of the General Assembly are elected.  Their term of office shall be four years and shall commence on the first day of January next after their election and continue until their successors are elected and qualified."
(c)	G.S. 115C-18 reads as rewritten:
"§ 115C-18.  Appointment of Superintendent of Public Instruction; salary.
The Superintendent of Public Instruction shall be 
appointed by the State Board of Education and shall serve at the pleasure of the State Board of Education. The salary of the Superintendent shall be set by the State Board of Education."
(d)	G.S. 115C-20 is repealed.
(e)  G.S. 115C-21(a) reads as rewritten:
"(a)	Administrative Duties. – It shall be the duty of the Superintendent of Public Instruction:
(1)	To organize and establish a Department of Public Instruction which shall include such divisions and departments as are necessary for supervision and administration of the public school system, to administer the funds for the operation of the Department of Public Instruction, and to enter into contracts for the operations of the Department of Public Instruction.
(2)	To keep the public informed as to the problems and needs of the public schools by constant contact with all school administrators and teachers, by personally appearing at public gatherings, and by information furnished to the press of the State.
(3)	To report biennially to the Governor 30 days prior to each regular session of the General Assembly. The report shall include information and statistics concerning the public schools, and recommendations for the improvement of the public schools and the public school law. 
(4)	To have printed and distributed such educational bulletins as necessary for the professional improvement of teachers and for the cultivation of public sentiment for public education, and to have printed all forms necessary and proper for the administration of the Department of Public Instruction.
(5)	As chief administrative officer of the State Board of Education, to direct all those matters relating to the supervision and administration of the public school system.
(b)	Duties as Secretary to the State Board of Education. – As secretary, under the direction of the Board, it shall be the duty of the Superintendent of Public Instruction:
(1)	To administer through the Department of Public Instruction, all policies established by the Board.
(1a)	To administer the funds appropriated to the Department of Public Education for the operations of the State Board of Education and for aid to local school administrative units.
(2)	To keep the Board informed regarding developments in the field of public education.
(3)	To make recommendations to the Board with regard to the problems and needs of education in North Carolina.
(4)	To make available to the public schools a continuous program of comprehensive supervisory services.
(5)	To collect and organize information regarding the public schools, and to use this information to furnish the Board such tabulations and reports as may be required by the Board.
(6)	To communicate to the public school administrators all information and instructions regarding instructional policies and procedures adopted by the Board.
(7)	To have custody of the official seal of the Board and to attest all deeds, leases, or written contracts executed in the name of the Board. All deeds of conveyance, leases, and contracts affecting real estate, title to which is held by the Board, and all contracts of the Board required to be in writing and under seal, shall be executed in the name of the Board by the chairman and attested by the secretary; and proof of the execution, if required or desired, may be had as provided by law for the proof of corporate instruments.
(8)	To attend all meetings of the Board and to keep the minutes of the proceedings of the Board in a well-bound and suitable book, which minutes shall be approved by the Board prior to its adjournment; and, as soon thereafter as possible, to furnish to each member of the Board a copy of said minutes.
(9)	To perform such other duties as the Board may assign." 
(f)  G.S. 143A-42 reads as rewritten:
"§ 143A-42.  Superintendent of Public Instruction; transfer of office and Department of Public Instruction; powers and duties.
The office of the Superintendent of Public Instruction, as provided for by Article IX, Sec. 4(2), of the Constitution, and the Department of Public Instruction are hereby transferred to the Department of Public Education. The Superintendent of Public Instruction shall be the secretary and chief administrative officer of the State Board of Education, and shall have such powers and duties as are conferred by the Constitution, by the State Board of Education, Chapter 115C of the General Statutes, and the laws of this State."
(g)  G.S. 147-3(c) reads as rewritten:
"(c)	The general civil executive officers of this State are as follows:
(1)	A Governor;
(2)	A Lieutenant Governor;
(3)	Private secretary for the Governor;
(4)	A Secretary of State;
(5)	An Auditor;
(6)	A Treasurer;
(7)	An Attorney General;
	(9)	The members of the Governor's Council;
(10)	A Commissioner of Agriculture;
(11)	A Commissioner of Labor;
(12)	A Commissioner of Insurance."
(h)  G.S. 147-4 reads as rewritten:
"§ 147-4.  Executive officers – election; term; induction into office.
The executive department shall consist of a Governor, a Lieutenant Governor, a Secretary of State, an Auditor, a Treasurer, an Attorney General, a Commissioner of Agriculture, a Commissioner of Insurance, and a Commissioner of Labor, who shall be elected for a term of four years, by the qualified electors of the State, at the same time and places, and in the same manner, as members of the General Assembly are elected. Their term of office shall commence on the first day of January next after their election and continue until their successors are elected and qualified. The persons having the highest number of votes, respectively, shall be declared duly elected, but if two or more be equal and highest in votes for the same office, then one of them shall be chosen by joint ballot of both houses of the General Assembly. Contested elections shall be determined by a joint ballot of both houses of the General Assembly in such manner as shall be prescribed by law."
(i) G.S. 147-11.1 reads as rewritten:
"§ 147-11.1.  Succession to office of Governor; Acting Governor.
(a)	Lieutenant Governor. –
(1)	The Lieutenant Governor-elect shall become Governor upon the failure of the Governor-elect to qualify. The Lieutenant Governor shall become Governor upon the death, resignation, or removal from office of the Governor. The further order of succession to the office of Governor shall be prescribed by law. A successor shall serve for the remainder of the term of the Governor whom he succeeds and until a new Governor is elected and qualified.
(2)	During the absence of the Governor from the State, or during  the physical or mental incapacity of the Governor to perform the duties of his office, the Lieutenant Governor shall be Acting Governor. The further order of succession as Acting Governor shall be prescribed by law.
(b)	President of Senate, Speaker of the House and Other Officers. –
(1)	If, by reason of failure to qualify, death, resignation, or removal from office, there is neither a Governor nor a Lieutenant Governor to discharge the powers and duties of the office of Governor, then the President of the Senate shall, upon his resignation as President of the Senate and as Senator, become Governor.
(2)	If, at the time when under subdivision (1) of this subsection the President of the Senate is to become Governor, there is no President of the Senate, or the President of the Senate fails to qualify as Governor, then the Speaker of the House of Representatives shall, upon his resignation as Speaker and as Representative, become Governor.
(3)	If, at the time when under subdivision (2) of this subsection the Speaker of the House of Representatives is to become Governor, there is no Speaker of the House of Representatives, or the Speaker of the House of Representatives fails to qualify as Governor, then that officer of the State of North Carolina who is highest on the following list, and who is not under disability to serve as Governor, shall, upon his resignation of the office which places him in the order of succession, become Governor: Secretary of State, Auditor, Treasurer, Attorney General, Commissioner of Agriculture, Commissioner of Labor, and Commissioner of Insurance.
(c)	Acting Governor Generally. –
(1)	If, by reason of absence from the State or physical or mental incapacity, there is neither a Governor nor a Lieutenant Governor qualified to discharge the powers and duties of the office of Governor, then the President of the Senate shall become Acting Governor.
(2)	If, at the time when under subdivision (1) of this subsection the President of the Senate is to become Acting Governor, there is no President of the Senate, or the President of the Senate fails to qualify as Acting Governor, then the Speaker of the House of Representatives shall become Acting Governor.
(3)	If, at the time when under subdivision (2) of this subsection the Speaker of the House of Representatives is to become Acting Governor, there is no Speaker of the House of Representatives, or the Speaker of the House of Representatives fails to qualify as Acting Governor, then that officer of the State of North Carolina who is highest on the following list, and who is not under disability to serve as Acting Governor, shall become Acting Governor: Secretary of State, Auditor, Treasurer, Attorney General, Commissioner of Agriculture, Commissioner of Labor, and Commissioner of Insurance.
(d)	Governor Serving under Subsection (c). – An individual serving as Acting Governor under subsection (c) of this section shall continue to act for the remainder of the term of the Governor whom he succeeds and until a new Governor is elected and qualified, except that:
(1)	If his tenure as Acting Governor is founded in whole or in part upon the absence of both the Governor and Lieutenant Governor from the State, then he shall act only until the Governor or Lieutenant Governor returns to the State; and
(2)	If his tenure as Acting Governor is founded in whole or in part upon the physical or mental incapacity of the Governor or Lieutenant Governor, then he shall act only until the removal of the incapacity of the Governor or Lieutenant Governor.
(e)	Officers to Which Subsections (b), (c) and (d) Applicable. – Subsections (b), (c), and (d) of this section shall apply only to such officers as are eligible to the office of Governor under the Constitution of North Carolina, and only to officers who are not under impeachment by the House of Representatives at the time they are to become Governor or Acting Governor.
(f)	Compensation of Acting Governor. – During the period that any  individual serves as Acting Governor under subsection (c) of this section, his compensation shall be at the rate then provided by law in the case of the Governor."
(j)  G.S. 163-1 is amended by deleting the entries in the table for "Superintendent of Public Instruction".
(k)  G.S. 163-8 reads as rewritten:
"§ 163-8.  Filling vacancies in State executive offices.
If the office of Governor or Lieutenant Governor shall become vacant, the provisions of G.S. 147-11.1 shall apply. If the office of any of the following officers shall be vacated by death, resignation, or otherwise than by expiration of term, it shall be the duty of the Governor to appoint another to serve until his successor is elected and qualified: Secretary of State, Auditor, Treasurer, Attorney General, Commissioner of Agriculture, Commissioner of Labor, and Commissioner of Insurance. Each such vacancy shall be filled by election at the first election for members of the General Assembly that occurs more than 60 days after the vacancy has taken place, and the person chosen shall hold the office for the remainder of the unexpired four-year term: Provided, that when a vacancy occurs in any of the offices named in this section and the term expires on the first day of January succeeding the next election for members of the General Assembly, the Governor shall appoint to fill the vacancy for the unexpired term of the office.
Upon the occurrence of a vacancy in the office of any one of these  officers for any of the causes stated in the preceding paragraph, the Governor may appoint an acting officer to perform the duties of that office until a person is appointed or elected pursuant to this section and Article III, Section 7 of the State Constitution, to fill the vacancy and is qualified."
(l)  G.S. 163-278.27 reads as rewritten:
"§ 163-278.27.  Penalty for violations; duty to report and prosecute.
(a)	Any individual, candidate, political committee, referendum committee, treasurer, person or media who violates the provisions of G.S. 163-278.7, 163-278.8, 163-278.9, 163-278.10, 163-278.11, 163-278.12, 163-278.14, 163-278.16, 163-278.17, 163-278.18, 163-278.40A, 163-278.40B, 163-278.40C, 163-278.40D or 163-278.40E is guilty of a misdemeanor.
(b)	Whenever the Board has knowledge of or has reason to believe there has been a violation of any section of this Article, it shall report that fact, together with accompanying details, to the following prosecuting authorities:
(1)	In the case of a candidate for nomination or election to the State Senate or State House of Representatives: report to the district attorney of the prosecutorial district in which the candidate for nomination or election resides;
(2)	In the case of a candidate for nomination or election to the  office of Governor, Lieutenant Governor, Secretary of State, State Auditor, State Treasurer, State Attorney General, State Commissioner of Agriculture, State Commissioner of Labor, State Commissioner of Insurance, and all other State elective offices, Justice of the Supreme Court, Judge of the Court of Appeals, judge of a superior court, judge of a district court, and district attorney of the superior court: report to the district attorney of the prosecutorial district in which Wake County is located;
(3)	In the case of an individual other than a candidate, including, without limitation, violations by members of political committees, referendum committees or treasurers: report to the district attorney of the prosecutorial district in which the individual resides; and
(4)	In the case of a person or any group of individuals: report to the district attorney or district attorneys of the prosecutorial district or districts in which any of the officers, directors, agents, employees or members of the person or group reside.
(c)	Upon receipt of such a report from the Board, the appropriate district attorney shall prosecute the individual or persons alleged to have violated a section or sections of this Article."
(m)  The amendments set out in subsections (a) and (b) of this section shall be submitted to the qualified voters of the State at an election to be held at the same time as the next statewide primary, general, or special election, whichever occurs first, which election shall be conducted under the laws then governing elections in the State. At that election, each qualified voter desiring to vote shall be provided a ballot on which shall be printed the following:
"[]	FOR constitutional amendments to make the Superintendent of Public Instruction an appointee of the State Board of Education.
[]	AGAINST constitutional amendments to make the Superintendent of Public Instruction an appointee of the State Board of Education."
	Those qualified voters favoring the amendments set out in subsections (a) and (b) of this section shall vote by making an "X"or a check mark in the square beside the statement beginning "FOR", and those qualified voters opposed to those amendments shall vote by making an "X"or check mark in the square beside the statement beginning "AGAINST".
	Notwithstanding the foregoing provisions of this subsection, voting machines may be used in accordance with rules prescribed by the State Board of Elections.
	(n)  If a majority of votes cast thereon are in favor of the amendments set out in subsections (a) and (b) of this section, the State Board of Elections shall certify the amendments to the Secretary of State, who shall enroll the amendments so certified among the permanent records of his office, and the amendments set out in subsections (a) and (b) of this section shall become effective on the earlier of January 1, 1997, and the date that a vacancy occurs in the office of Superintendent of Public Instruction, except that there shall be no election held to fill the office of Superintendent for a term beginning on or after December 31, 1996.  If Article III, Section 7(3) of the Constitution would have provided for an election to be held in 1994 for the remainder of the unexpired term caused by a vacancy in the office of the Superintendent of Public Instruction, that election shall not be held and the vacancy shall be filled by the State Board of Education; provided, this sentence only applies if the referendum in subsection (m) of this section occurs before January 1, 1994.
(o) Subsections (c) through (l) of this section become effective only if the constitutional amendments set out in subsections (a) and (b) of this section are approved by the voters. If the constitutional amendments are approved by the voters, subsections (c) through (l) of this section shall become effective the earlier of January 1, 1997, and the date that a vacancy occurs in the office of Superintendent of Public Instruction, except that there shall be no election held to fill the office of Superintendent for a term beginning on or after December 31, 1996.
(p)  This section is effective upon ratification.

PART 10.  COLLEGES AND UNIVERSITIES

Requested by:  Representative Balmer
UNIVERSITY OF NORTH CAROLINA FULL-TIME EQUIVALENT ENROLLMENT
Sec. 27.  The Board of Governors of The University of North Carolina shall ensure that the method of calculating full-time equivalent enrollment (FTE) be changed from those undergraduates now taking 12 semester credit hours and less than 15 semester credit hours.  These students shall be calculated as four-fifths  of one FTE.  Those undergraduate students taking 15 semester credit hours but less than 18 semester credit hours shall count as one FTE.  Those undergraduates taking 18 semester credit hours but less than 21 semester credit hours shall count as one and one-half FTE.  For graduate students now taking nine semester credit hours but less than 12 semester credit hours, the new FTE calculation shall count these students as four-fifths of one FTE.  Graduate students taking 12 or more semester credit hours shall count as one FTE.  These calculations shall be made on an annual basis by averaging the fall and spring academic semesters.
The Board of Governors of The University of North Carolina shall revise its methods of estimating and distributing the costs for additional enrollments in a manner that adheres to this new policy of calculating full-time equivalent enrollment.

Requested by:  Representative Balmer
FULL COST OF OUT-OF-STATE TUITION
Sec. 28.  G.S. 116-144 reads as rewritten:
"§ 116-144. Higher tuition to be charged nonresidents.
The Board of Governors shall fix the tuition and required fees charged nonresidents of North Carolina who attend the institutions enumerated in G.S. 116-4 at rates necessary to fully fund the average educational and general cost of providing undergraduate or graduate education at each institution, except that a person who serves as a graduate teaching assistant or graduate research assistant or in a similar instructional or research assignment and is at the same time enrolled as a graduate student in the same institution may, in the discretion of the Board of Governors, be charged a lower rate fixed by the Board, provided the rate is not lower than the North Carolina resident rate."

Requested by:  Representative Balmer
UNIVERSITY OF NORTH CAROLINA RESIDENT TUITION ISSUES
Sec. 29.  (a)	The General Assembly finds that the tuition policy at The University of North Carolina, both for undergraduates and graduates, and both for residents and nonresidents, needs to be reexamined in order to reflect better the constitutional mandate to provide higher education free of expense "as far as practicable" by reevaluating the relationship of tuition to cost and by determining what costs must be made up of tuition charged in order to ensure that all eligible North Carolinians are indeed guaranteed a public higher education at the lowest possible cost while maintaining a public higher education system that is worthy of the support of all North Carolinians.
(b)	The General Assembly finds that undergraduate resident students of The University of North Carolina should pay at least eighteen percent (18%) of the educational and general costs, excluding financial aid, of the average cost of undergraduate education by level of institution.
(c)	The Board of Governors of The University of North Carolina shall develop and implement plans to phase in the attainment of the level of student contribution set forth in subsection (b) of this section.  The phasing in shall begin by the 1993-94 academic year and be completed by the 1996-97 academic year.
(d)	The General Assembly finds that tuition and required fees should be a limited amount of resident students' costs.
(e) The Board of Governors of The University of North Carolina shall develop a tuition and fee policy consistent with law that limits tuition and required fees to a specific percentage of less than one-fourth of the cost to undergraduate resident students of attending constituent institutions of The University of North Carolina.  The Board shall define the elements of cost to be included in this policy's calculations and shall report these elements of cost to the General Assembly.
(f) The Board of Governors of The University of North Carolina shall develop a plan for providing increased State-funded need-based financial aid, with a strong emphasis on a grants program, commensurate with any increase in students' financial needs generated by tuition increases, to students at constituent institutions of The University of North Carolina.
(g) The Board of Governors of The University of North Carolina, in accordance with G.S. 116-143, shall develop higher tuition rates for graduate and professional programs.  These rates shall be developed after specific analysis of the cost differences between undergraduate and graduate instruction.  The new rates shall be based on this analysis. 
(h)  The Board of Governors of The University of North Carolina shall implement its plan for all the tuition increases pursuant to this section beginning with the 1993-94 academic year.

PART 11.  DEPARTMENT OF COMMERCE

Requested by:  Representative Balmer
ELIMINATE ENERGY DIVISION
Sec. 30.  (a) The Division of Energy in the Department of Commerce is eliminated.
(b)	The Governor shall ensure the transfer of functions related to the handling of petroleum overcharge funds for weatherization programs from the Department of Commerce to the Department of Human Resources.
(c)	Oversight and regulatory duties handled by the Division of Energy prior to the implementation of subsections (a) and (b) of this section are transferred to the Utilities Commission by a Type I transfer.

Requested by:  Representative Balmer
ABOLISH N.C. SEAFOOD INDUSTRIAL PARK AUTHORITY
Sec. 31.  (a) The North Carolina Seafood Industrial Park Authority shall discontinue operation of the Wanchese Seafood Industrial Park and the State shall sell the property on which the Wanchese Seafood Industrial Park is located.
(b)	Article 23C of Chapter 113 of the General Statutes is repealed.

TITLE III - LINE-ITEM VETO

PART 12.  LINE-ITEM VETO

Requested by:   Representative Balmer
LINE-ITEM VETO
Sec. 32.  (a) Section 22 of Article II of the Constitution of North Carolina reads as rewritten:
	"Sec. 22. Action on bills.  
(1)	All bills proposing a new or revised Constitution or an amendment or amendments to this Constitution or calling a convention of the people of this State, and containing no other matters, shall be submitted to the qualified voters of this State after they shall have been read three times in each house, and signed by the presiding officers of both houses.
(2)	All bills approving an amendment to the Constitution of the United States, or applying for a convention to propose amendments to the Constitution of the United States, and containing no other matters, shall be read three times in each house before they become laws, and shall be signed by the presiding officers of both houses.
	(3)  Any other bill shall be read three times in each house and shall be signed by the presiding officer of each house before being presented to the Governor.  If the Governor approves, he shall sign it and it shall become a law; but if not, he shall return it with his objections to that house in which it shall have originated, which shall enter the objections at large on its journal, and proceed to reconsider it.  If after such reconsideration two-thirds of all the members of that house shall agree to pass the bill, it shall be sent, together with the objections, to the other house, by which it shall likewise be reconsidered; and if approved by two-thirds of all the members of that house, it shall become a law notwithstanding the objections of the Governor.  In all such cases, the votes of both houses shall be determined by yeas and nays, and the names of the members voting shall be entered on the journal of each house respectively.
	(4)  If any bill shall not be returned by the Governor within 10 days (Sundays excepted) after it shall have been presented to him, the same shall be a law in like manner as if he had signed it, unless the General Assembly shall, by its adjournment, prevent its return, in which case it shall not become a law without the approval of the Governor.
	(5)  No bill shall become a law after adjournment of the General Assembly sine die unless approved by the Governor within 30 days after such adjournment.
	(6)  If any bill presented to the Governor contains items of appropriation of money, he may object to one or more of such items while approving of the other portion of the bill.  In such a case, he shall append to the bill, at the time of signing it, a statement of the items to which he objects; and the appropriations so objected to shall not take effect.  If the General Assembly shall be in session, he shall transmit to the house in which the bill originated a copy of such statement, and the items objected to shall be separately reconsidered.  If after such reconsideration any such items be approved by two-thirds of all the members of that house, the item or items approved, together with the Governor's statement of objection thereto, shall be transmitted to the other house and the item separately reconsidered; and if any item be approved by two-thirds of all the members of that house, the same shall be part of the law, notwithstanding the objections of the Governor.
	(7)  All the provisions of this section in relation to bills not approved by the Governor shall apply in cases in which he shall withhold his approval for any item or items contained in a bill appropriating money.
	(8)  For purposes of return of bills not approved by the Governor, the General Assembly shall be considered to be continuously in session until it adjourns sine die; and the Principal Clerk of the House of Representatives (or another officer designated by the House of Representatives) and the Principal Clerk of the Senate (or another officer designated by the Senate) shall be deemed proper recipients of such returned bills during recess or adjournment of the General Assembly other than sine die.
(9)	Every joint resolution shall be read three times in each house before it becomes effective, and shall be signed by the presiding officers of both houses.
	(10)  Every order to which the concurrence of both houses of the General Assembly may be necessary shall be presented to the Governor and, before the same shall take effect, be approved by him or, being disapproved by him, shall be repassed by two-thirds of all the members of each house of the General Assembly, according to the rules and limitations prescribed in this section in case of a bill.  'Order' as used in this section is an appointment by the General Assembly to public office (except in the legislative branch) made other than by bill."
(b)	The amendment set forth in subsection (a) of this section shall be submitted to the qualified voters of the State at the general election in November of 1994, which shall be conducted under the laws then governing elections in the State.
(c)	At that election, each qualified voter desiring to vote shall be provided a ballot on which shall be printed the following:
"[]	FOR constitutional amendment granting veto power to the Governor, provided such veto may be overridden by two-thirds vote of each house of the General Assembly.
[]	AGAINST constitutional amendment granting veto power to the Governor, provided such veto may be overridden by two-thirds vote of each house of the General Assembly."
Those qualified voters favoring the amendment shall vote by marking an "X"or a check mark in the square beside the statement beginning "FOR", and those qualified voters opposed to the amendment shall vote by marking an "X"or a check mark in the square beside the statement beginning "AGAINST".
Notwithstanding the foregoing provisions of this section, voting machines may be used in accordance with rules and regulations prescribed by the State Board of Elections.
(d)	If a majority of votes cast thereon are in favor of the constitutional amendment set out in subsection (a) of this section, then the State Board of Elections shall certify the amendment set out in subsection (a) of this section to the Secretary of State who shall enroll that amendment so certified among the permanent records of his office.  This constitutional amendment shall become effective beginning with bills and orders passed in either house of the General Assembly on or after January 1, 1995.

TITLE IV - MISCELLANEOUS PROVISIONS

PART 13.  MISCELLANEOUS PROVISIONS

Requested by:  Representative Balmer
EXECUTIVE BUDGET ACT APPLIES
Sec. 33.  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:  Representative Balmer
COMMITTEE REPORT
Sec. 34.  The North Carolina House Republican Caucus General Fund Budget Recommendation, 1993-95 biennium, as amended, authored by Representative David G. Balmer, House Minority Leader, dated April 7, 1993, which was distributed in the House of Representatives on –– is incorporated by reference into this act.  If there is a conflict between any provision of Sections 1 through 38 of this act and any provisions in the Caucus Recommendation, the provisions of the Caucus Recommendation control.

Requested by:  Representative Balmer
MOST TEXT APPLIES ONLY TO 1993-95
Sec. 35.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1993-95 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 1993-95 fiscal year.

Requested by:  Representative Balmer
EFFECT OF HEADINGS
Sec. 36.  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:  Representative Balmer
SEVERABILITY CLAUSE
Sec. 37.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Requested by:  Representative Balmer
EFFECTIVE DATE
Sec. 38.  Except as otherwise provided, this act becomes effective July 1, 1993.