GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 1660*

Short Title:  Governor's 1994 Operating Approp.	(Public)
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Sponsors: Representatives Nesbitt, Diamont; Crawford and McLawhorn.
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Referred to:  Appropriations.
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May 26, 1994

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES; TO MAKE APPROPRIATIONS FOR OTHER PURPOSES AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.
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.

TITLE OF ACT
Sec. 2.  This act shall be known as "The Current Operations Appropriations Act of 1994."

TITLE I. - CURRENT OPERATIONS

PART 1.  GENERAL FUND APPROPRIATIONS - CONTINUING OPERATIONS

CURRENT OPERATIONS/STATE GOVERNMENT
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 fiscal year ending June 30, 1995, according to the schedule that follows.  The amounts set out in the schedule are in addition to other appropriations from the General Fund for these purposes for the 1994-95 fiscal year.  Amounts set out in brackets are reductions from General Fund appropriations for the 1994-95 fiscal year.

Current Operations/State Government	1994-95

Judicial Department	$   (1,048,424)

Office of the Governor
01.	Office of the Governor	244,978
02.	Office of State Budget and Management	60,280
03.	Office of State Planning	208,236

Department of Secretary of State	140,987

Department of State Auditor	59,417

Department of State Treasurer	381,173

Public Education	9,242,526

Department of Justice	(386,569)

Department of Administration	(765,270)

Department of Agriculture	92,362

Department of Labor	(159,546)

Department of Insurance	368,923

Department of Environment, Health, and Natural Resources	(152,511)

Department of Human Resources
01.	Secretary's Office	(800,331)
02.	Division of Aging	(12,524)
03.	Schools for the Deaf and Hard of Hearing	271,496
04.	Social Services	3,441,042
05.	Medical Assistance	(80,766,097)
06.	Services for the Blind	93,224
07.	Division of Mental Health, Developmental Disabilities,
and Substance Abuse Services	18,462,771
08.	Division of Facility Services	28,037,099
09.	Division of Vocational Rehabilitation Services	(46,633)
10.	Division of Youth Services	(55,304)
Total Department of Human Resources	(31,375,257)

Department of Correction	11,121,938

Department of Commerce
01.	Commerce	5,948,704
02.	MCNC	1,900,000
03.	Rural Economic Development Center	4,250,000

Department of Revenue	5,731,445

Department of Cultural Resources	(187,163)

Department of Crime Control and Public Safety	(168,331)

Office of the State Controller	2,699,712

University of North Carolina - Board of Governors
01.	University of North Carolina:
a.	General Administration	(72,774)
b.	Lump-sum - Institutional Programs	4,241,124
c.	Related Educational Programs	4,167,480
02.	University of North Carolina at Chapel Hill
a.	Academic Affairs	(139,414)
b.	Health Affairs	(298,411)
c.	Area Health Education Centers	(16,156)
03.	North Carolina State University at Raleigh
a.	Academic	(578,153)
b.	Agricultural Research Service	289,141
c.	Agricultural Extension Services	(34,614)
04.	University of North Carolina at Greensboro	(177,883)
05.	University of North Carolina at Charlotte	(97,383)
06.	University of North Carolina at Asheville	422,619
07.	University of North Carolina at Wilmington	(89,517)
08.	East Carolina University
a.	Academic	(212,044)
b.	Health Affairs	(279,533)
09.	North Carolina Agricultural and Technical State University	(163,092)
10.	Western Carolina University	(129,056)
11.	Appalachian State University	(167,867)
12.	Pembroke State University	(13,901)
13.	Winston-Salem State University	(61,457)
14.	Elizabeth City State University	(55,560)
15.	Fayetteville State University	35,681
16.	North Carolina Central University	(107,250)
17.	North Carolina School of the Arts	(33,054)
18.	North Carolina School of Science and Mathematics	809,794
19.	University of North Carolina Hospitals at Chapel Hill	(201,782)
Total University of North Carolina - Board of Governors	7,036,938

Department of Community Colleges	9,602,824

State Board of Elections	326,921

Office of State Budget and Management
01.	Reserve for Salary Increases
a.	4% Salary Increase	210,600,000
b.	Reduction in balance of 2% Salary Increase	(1,757,024)
c.	Locally Operated Programs	13,229,184
02.	Reserve for Salary Adjustments	3,500,000
03.	Reserve for Retiree 30% Reduction	(16,318)
04.	Debt Service	25,723,695

GRAND TOTAL CURRENT OPERATIONS/GENERAL FUND	$  276,453,830

PART 2.  NONRECURRING APPROPRIATIONS/GENERAL FUND

CURRENT OPERATIONS/STATE GOVERNMENT - NONRECURRING
Sec. 4.  Appropriations are made from the General Fund for the 1994-95 fiscal year for use by the State departments, institutions, and agencies, to provide for one-time expenditures according to the following schedule:

Current Operations/State Government - Nonrecurring	1994-95

Office of the Governor
01.	Office of the Governor	  $1,050,000
02.	Housing Finance Agency	3,650,000

Department of State Treasurer	214,000

Public Education	47,750,000

Department of Administration	492,303

Department of Agriculture	250,000

Department of Environment, Health, and Natural Resources	10,591,435

Department of Correction	1,393,690

Department of Commerce
01.	Commerce	13,172,459
02.	Biotechnology Reserve	2,000,000
03.	MCNC	4,000,000
04.	Rural Economic Development Center	2,000,000

Department of Revenue	5,000,000

Office of the State Controller	10,300,000

University of North Carolina - Board of Governors
01.	University Institutional Programs	8,789,869
02.	University of North Carolina at Chapel Hill
a.	Academic Affairs	(161,642)
03.	North Carolina State University at Raleigh
a.	Cooperative Extension Service	1,440,000
Total University of North Carolina - Board of Governors	10,068,227

Department of Community Colleges	13,000,000

Office of State Budget and Management
01.	Reserve for Compensation Bonus	57,400,000
02.	Reserve for Restoring Paydate	120,000,000
03.	Reserve for Computers	3,000,000
04.	Reserve for OSHA - Bloodborne Pathogens Standard	1,000,000
05.	Reserve for Match Statewide Programs	3,000,000

GRAND TOTAL CURRENT OPERATIONS/GENERAL FUND - 
NONRECURRING	$ 309,332,114

PART 3.  HIGHWAY FUND APPROPRIATIONS

CURRENT OPERATIONS/HIGHWAY FUND
Sec. 5.  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 fiscal year ending June 30, 1995, according to the schedule that follows.  The amounts set out in the schedule are in addition to other appropriations from the Highway Fund for these purposes for the 1994-95 fiscal year.

Current Operations/Highway Fund	1994-95

Department of Transportation
01.	Administration	$   269,000
02.	Division of Highways
a.	Ferry Operations	1,800,000
03.	Division of Motor Vehicles	1,531,000
04.	Reserve for Salary Increases	14,400,000
GRAND TOTAL CURRENT OPERATIONS/HIGHWAY FUND	$18,000,000

PART 4.  HIGHWAY FUND APPROPRIATIONS - NONRECURRING

CURRENT OPERATIONS/HIGHWAY FUND - NONRECURRING APPROPRIATIONS/HIGHWAY FUND
Sec. 6.  Appropriations are made from the Highway Fund of the 1994-95 fiscal year for use by the Department of Transportation, and for other purposes to provide for one-time expenditures according to the following schedule:

Current Operations/Highway Fund - Nonrecurring	1994-95

Department of Transportation
01.	Administration	$   332,000
02.	Division of Highways
a.	State Construction
(01)	Secondary Construction	3,600,000
b.	State Maintenance
(01)	Primary	3,027,294
(02)	Secondary	5,305,273
(03)	Urban	796,620
c.	Ferry Operations	951,000
03.	Division of Motor Vehicles	2,917,813
04.	State Aid to Municipalities	3,600,000
05.	State Aid for Public Transportation	5,800,000
06.	State Aid for Railroads	400,000
07.	Reserve for Salary Increases	3,600,000
08.	Battery Dump Site Cleanup	300,000

Appropriations for Other State Agencies
01.	Crime Control and Public Safety	500,000
02.	Revenue	71,968
03.	Environment, Health, and Natural Resources	928,032
04.	Global TransPark Authority	2,870,000
GRAND TOTAL CURRENT OPERATIONS/HIGHWAY FUND -
NONRECURRING	$35,000,000

PART 5.  GENERAL PROVISIONS

PERMIT DEVIATION FROM EXPENDITURE OF FUNDS RESTRICTION
Sec. 7.  For the 1994-95 fiscal year only, G.S. 143-16.3 does not apply to the extent that the Director of the Budget finds that compliance is impossible and that deviation is necessary because of complications in the budget process that were not contemplated when the budget for the 1993-95 fiscal biennium was enacted.
The Director of the Budget shall report on a quarterly basis for the first six months of the 1994-95 fiscal year and monthly thereafter, to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office on any deviations from G.S. 143-16.3, the reasons that compliance was impossible, and the complications in the budget process that were not contemplated when the budget for the 1993-95 fiscal biennium was enacted that made compliance impossible.

AUTHORIZED TRANSFERS/SALARY ADJUSTMENT FUNDS
Sec. 8.  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.

RESTORATION OF THE JUNE 30 PAYDATE
Sec. 9.  The funds appropriated in Section 4 of this act to the Office of State Budget and Management for a Reserve for Paydate Restoration in the amount of one hundred twenty million dollars ($120,000,000) shall be used to restore the twelfth month of teacher payroll for school teachers paid from the General Fund.
In no event shall any allotments made pursuant to this section exceed the actual General Fund requirements.

PART 6.  OFFICE OF THE GOVERNOR

COMMISSION ON NATIONAL AND COMMUNITY SERVICE
Sec. 10.  Of the funds appropriated to the Office of the Governor, the sum of seventeen thousand eighty-five dollars ($17,085) shall be used to provide State match for federal funds from the Federal Corporation for National and Community Service for the State Commission on National and Community Service.

MILITARY BASE CLOSURES
Sec. 11.  Of the funds appropriated to the Office of the Governor the sum of three hundred thousand dollars ($300,000) shall be used to create a Military Liaison Office to represent the interest of North Carolina relative to federal efforts to realign and close military bases in North Carolina and provide staff support for the Governor's Advisory Commission on Military Affairs.

HEALTH PLANNING COMMISSION DEADLINE EXTENSION
Sec. 12.  Section 2.1(b), Chapter 529 of the 1993 Session Laws is amended as follows:
"(b)	The Governor shall present to the General Assembly no later than February 1, 1995, a plan for consolidating all of the State health functions into one State Department of Health.  The plan shall be based upon and shall address the principles and elements outlined in subsections (c) and (d) of this section."

OUTWARD BOUND
Sec. 13.  Of the funds appropriated to the Office of the Governor, the sum of two hundred fifty thousand dollars ($250,000) shall be used to implement the North Carolina Partnership for Excellence in Education through the North Carolina Outward Bound School.  Funds shall be used to contract with North Carolina Outward Bound School to implement a three-part effort, including a summer scholarship program to focus on the needs of at-risk children, preservice training to focus on future teachers, and in-service training to focus on the professional needs of current educators.

TOTAL QUALITY EDUCATION
Sec. 14.  Of the funds appropriated to the Office of the Governor, the sum of seven hundred fifty thousand dollars ($750,000) shall be used for a grant to the North Carolina Business Committee for Education to expand the Total Quality Education (TQE) project currently sponsored by the North Carolina Business Committee for Education.  Funds shall be used to provide matching grants for up to 20 school systems who apply to be a part of the TQE initiative.  Funds appropriated by the General Assembly will be matched by State businesses, industries, and State/national foundations.

PART 7.  OFFICE OF THE STATE CONTROLLER

CARRY-FORWARD INFORMATION HIGHWAY
Sec. 15.  Of the funds appropriated in the 1993-94 fiscal year to the Office of the State Controller for the North Carolina Information Highway, three million six hundred thousand dollars ($3,600,000) shall be carried forward to the 1994-95 fiscal year and used as directed by the 1993 General Assembly, Regular Session 1994.

INFORMATION HIGHWAY
Sec. 15.1.  (a)	G.S. 143B-426.39 is amended by adding a new subdivision to read:
"(16)	In order to promote the general welfare by enhancing public access to broadband telecommunications services, permit in addition to State agencies, cities, counties, and other local government units, the following organizations and entities to share on not-for-profit basis the NCIH set forth in subdivision (14)a.9. of this section:
a.	Nonprofit educational institutions;
b.	The Microelectronics Center of North Carolina ('MCNC');
c.	Research affiliates of MCNC for use only in connection with research activities sponsored or funded, in whole or in part, by MCNC, if such research activities related to health care or education in North Carolina;
d.	Agencies of the United States government operating in North Carolina for use only in connection with activities that relate to health care or education in North Carolina; or
e.	Hospitals, clinics, and other health care facilities for use only in connection with activities that relate to health care or education in North Carolina.
Provided, however, that sharing of the NCIH by State agencies with entities or organizations in the categories set forth herein shall not cause the State, the Office of State Controller, or the MCNC to be classified as a public utility as that term is defined in G.S. 62-3(23)a.6.  Nor shall the State, the Office of State Controller, or the MCNC engage in any activities that may cause those entities to be classified as a common carrier as that term is defined in the federal Communications Act of 1934, 47 U.S.C. § 153(h).  Provided further, authority to share the NCIH with the non-State agencies set forth above shall terminate one year from the effective date of a tariff that makes the broadband services comparable to those of the NCIH available to the parties sharing the NCIH."
(b)	G.S. 62-3(23) is amended by adding a new subparagraph as follows:
"h.	The term public utility shall not include the State, the Office of the State Controller, or the Microelectronics Center of North Carolina in the provision or sharing of the North Carolina Information Highway with non-State entities or organizations of the kind or type set forth in G.S. 143B-426.39."

PART 8.  OFFICE OF STATE PERSONNEL

SALARY INEQUITIES
Sec. 16.  Salary increases for the purpose of adjusting inequitable compensation differences as defined in the administrative rules promulgated by the State Personnel Commission, may be granted utilizing salary reserves available within departments and institutions for whom salary increases are granted.  The granting of all such increases shall be in compliance with the administrative rule promulgated by the State Personnel Commission.

PART 9.  OFFICE OF STATE BUDGET AND MANAGEMENT

RESERVE FOR COMPUTERS
Sec. 17.  The funds appropriated in Section 4 of this act to the Office of State Budget and Management for a reserve for computers shall be used by the Office of State Budget and Management to address computer needs of State departments and institutions when no alternative source of funds is available.  The Reserve for Computers shall be disbursed under the guidelines and authorization of the Information Resource Management Commission.

RESERVE OF IMPLEMENTATION OF OSHA BLOODBORNE PATHOGEN STANDARD
Sec. 18.  The funds appropriated in Section 4 of this act to the Office of State Budget and Management for a Reserve for Implementation of OSHA Bloodborne Pathogen Standard shall be used by the Office of State Personnel to implement the OSHA Standards.  The funds in the Reserve shall be allocated for implementation of the standard under the guidelines established by the Office of State Personnel in conjunction with recommendations outlined by the Office of State Budget and Management.

PART 10.  SALARIES AND BENEFITS

APPROPRIATIONS
Sec. 19.  (a)	Of the funds appropriated in Sections 3 and 4 of this act from the General Fund to the Reserves for Salary Increases, the sum of one hundred thirty-eight million nine hundred forty-three thousand four hundred ninety-five dollars ($138,943,495) for the 1994-95 fiscal year shall be used to provide a four percent (4%) permanent salary increase and a one percent (1%) pay bonus for State employees and other school personnel and teachers, consistent with the Comprehensive Compensation Plan enacted in Chapter 388 of the 1993 Session Laws.
(b)	Of the funds appropriated in Sections 5 and 6 of this act from the Highway Fund to the Reserve for Salary Increases, the sum of eighteen million dollars ($18,000,000) for the 1994-95 fiscal year shall be used to provide a four percent (4%) permanent salary increase and a one percent (1%) pay bonus for State employees, consistent with the Comprehensive Compensation Plan enacted in Chapter 388 of the 1993 Session Laws.
(c)	Of the funds appropriated in Section 3 of this act from the General Fund to the Reserve for Salary Increases, the sum of thirteen million two hundred twenty-nine thousand one hundred eight-four dollars ($13,229,184) for the 1994-95 fiscal year shall be allocated for employees in locally operated State-funded programs as provided in this act.

GOVERNOR'S SALARY INCREASE
Sec. 20.  G.S. 147-11(a) reads as rewritten:
"(a)	The salary of the Governor shall be ninety-seven thousand five hundred twenty-eight dollars ($97,528) annually, payable monthly."

COUNCIL OF STATE/SALARY INCREASE
Sec. 21.  The annual salaries for members of the Council of State, payable monthly, for the 1994-95 fiscal year are:

Council of State	Annual Salary

Lieutenant Governor	$80,381
Attorney General	 80,381
Secretary of State	 80,381
State Treasurer	 80,381
State Auditor	 80,381
Superintendent of Public Instruction	 80,381
Agriculture Commissioner	 80,381
Insurance Commissioner	 80,381
Labor Commissioner	 80,381

NONELECTED DEPARTMENT HEAD/SALARY INCREASES
Sec. 22.  In accordance with G.S. 143B-9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal State departments for the 1994-95 fiscal year are:

Nonelected Department Heads	Annual Salary

Secretary of Administration	$80,381
Secretary of Correction	 80,381
Secretary of Crime Control and Public Safety	 80,381
Secretary of Cultural Resources	 80,381
Secretary of Commerce	 80,381
Secretary of Environment, Health, and Natural Resources	 80,381
Secretary of Human Resources	 80,381
Secretary of Revenue	 80,381
Secretary of Transportation	 80,381

CERTAIN EXECUTIVE BRANCH OFFICIALS/SALARY INCREASES
Sec. 23.  (a)	The annual salaries, payable monthly, for the 1994-95 fiscal year for the following executive branch officials are:

Executive Branch Officials	Annual Salary

Chairman, Alcoholic Beverage Control Commission	$ 77,365
State Controller	 125,113
Commissioner of Motor Vehicles	  77,365
Commissioner of Banks	  77,365
Chairman, Employment Security Commission	  77,365
State Personnel Director	  80,381
Chairman, Parole Commission	  70,643
Members of the Parole Commission	  65,220
Chairman, Industrial Commission	  69,510
Members of the Industrial Commission	  67,817
Executive Director, Agency for Public Telecommunications	  65,220
General Manager, Ports Railway Commission	  58,893
Director, Museum of Art	  79,274
Executive Director, Wildlife Resources Commission	  66,773
Executive Director, North Carolina Housing Finance Agency	  95,746
Executive Director, North Carolina Agricultural
Finance Authority	  75,302
Director, Office of Administrative Hearings	  68,301
(b)	Any person carrying on the functions of a position listed in subsection (a) of this section shall be paid only the salary set out in that subsection, and the mere classification of the position to be some other position does not allow the salary of that position to be set in some other manner.

LEGISLATORS/SALARY AND EXPENSES INCREASE
Sec. 24.  Effective upon convening of the 1995 Regular Session of the General Assembly, G.S. 120-3 reads as rewritten:
"§ 120-3.  Pay of members and officers of the General Assembly.
(a)	The Speaker of the House shall be paid an annual salary of thirty-seven thousand seven hundred eighty-seven dollars ($37,787), payable monthly, and an expense allowance of one thousand three hundred forty-six dollars ($1,346) per month.  The President Pro Tempore of the Senate shall be paid an annual salary of thirty-seven thousand seven hundred eighty-seven dollars ($37,787), payable monthly, and an expense allowance of one thousand three hundred forty-six dollars ($1,346) per month.  The Speaker Pro Tempore of the House shall be paid an annual salary of twenty-one thousand five hundred thirty-two dollars ($21,532) payable monthly, and an expense allowance of seven hundred ninety-six dollars ($796.00) per month.  The Deputy President Pro Tempore of the Senate shall be paid an annual salary of twenty-one thousand five hundred thirty-two dollars ($21,532) payable monthly, and an expense allowance of seven hundred ninety-six dollars ($796.00) per month.  The majority and minority leaders in the House and the majority and minority leaders in the Senate shall be paid an annual salary of sixteen thousand eight hundred eighty-five dollars ($16,885), payable monthly, and an expense allowance of six hundred thirty-four dollars ($634.00) per month.
(b)	Every other member of the General Assembly shall receive increases in annual salary only to the extent of and in the amounts equal to the average increases received by employees of the State, effective upon convening of the next Regular Session of the General Assembly after enactment of these increased amounts.  Accordingly, upon convening of the 1995 Regular Session of the General Assembly, every other member of the General Assembly shall be paid an annual salary of thirteen thousand eight hundred eighteen dollars ($13,818) payable monthly, and an expense allowance of five hundred thirty-two dollars ($532.00) per month.
(c)	The salary and expense allowances provided in this section are in addition to any per diem compensation and any subsistence and travel allowance authorized by any other law with respect to any regular or extra session of the General Assembly, and service on any State board, agency, commission, standing committee and study commission."

GENERAL ASSEMBLY PRINCIPAL CLERKS/SALARY INCREASES
Sec. 25.  G.S. 120-37(c) reads as rewritten:
(c)	The principal clerks shall be full-time officers.  Each principal clerk shall be entitled to other benefits available to permanent legislative employees and shall be paid an annual salary of forty-nine thousand five hundred twenty-five dollars ($49,525) payable monthly.  The Legislative Services Commission shall review the salary of the principal clerks prior to submission of the proposed operating budget of the General Assembly to the Governor and Advisory Budget Commission and shall make appropriate recommendations for changes in those salaries.  Any changes enacted by the General Assembly shall be by amendment to this paragraph.

SERGEANT-AT-ARMS AND READING CLERKS/SALARY INCREASES
Sec. 26.  G.S. 120-37(b) reads as rewritten:
"(b)	The sergeant-at-arms and the reading clerk in each house shall be paid a salary of two hundred thirty-two dollars ($232.00) per week, plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return.  The sergeants-at-arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission.  The reading clerks shall serve during sessions only."

LEGISLATIVE EMPLOYEES/SALARY INCREASES
Sec. 27.  The Legislative Administrative Officer may increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 1994-95 by an amount equal to four percent (4%).  Nothing in this act limits any of the provisions of G.S. 120-32.

JUDICIAL BRANCH OFFICIALS/SALARY INCREASE
Sec. 28.  (a)	The annual salaries, payable monthly, for specified judicial branch officials for fiscal year 1994-95 are:

Judicial Branch Officials	Annual Salary

Chief Justice, Supreme Court	$97,528
Associate Justice, Supreme Court	 95,529
Chief Judge, Court of Appeals	 92,487
Judge, Court of Appeals	 90,476
Judge, Senior Regular Resident Superior Court	 83,016
Judge, Superior Court	 80,381
Chief Judge, District Court	 70,986
Judge, District Court	 68,301
District Attorney	 74,844
Assistant District Attorney - an average of	 48,608
Administrative Officer of the Courts	 83,016
Assistant Administrative Officer of the Courts	 67,766
Public Defender	 74,844
Assistant Public Defender - an average of	  48,608.
If an acting senior regular resident superior court judge is appointed under the provisions of G.S. 7A-41, he shall receive the salary of Judge, Senior Regular Resident, Superior Court, until his temporary appointment is vacated, and the judge he replaces shall receive the salary indicated for Judge, Superior Court.
The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed forty-eight thousand six hundred eight dollars ($48,608), and the minimum salary of any assistant district attorney or assistant public defender is at least twenty-four thousand eight hundred sixteen dollars ($24,816) effective July 1, 1994.
(b)	The salaries in effect for fiscal year 1994-95 for permanent, full-time employees of the Judicial Department, except for those whose salaries are itemized in this act, shall be increased by four percent (4%), commencing July 1, 1994.
(c)	The salaries in effect for fiscal year 1994-95 for all permanent, part-time employees of the Judicial Department shall be increased on and after July 1, 1994, by pro rata amounts of the four percent (4%).

CLERK OF SUPERIOR COURT SALARY DETERMINATION/INCREASE
Sec. 29.  (a)	G.S. 7A-101 (a) reads as rewritten:
"(a)	The clerk of superior court is a full-time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county as determined in subsection (a1) of this section, according to the following schedule:
Population	Annual Salary
Less than 100,000		$50,327  
100,000 to 149,999		56,837  
150,000 to 249,999		64,737  
250,000 and above		70,986.
When a county changes from one population group to another, the salary of the clerk shall be changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate for the new population group, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office."
(b)	The increase required for the new annual salaries provided in subsection (a) of this section shall be funded from funds available to the Administrative Office of the Courts for fiscal year 1994-95.

ASSISTANT AND DEPUTY CLERKS OF COURT/SALARY INCREASE
Sec. 30.  G.S. 7A-102(c) reads as rewritten:
"(c)	Notwithstanding the provisions of subsection (a), the Administrative Officer of the Courts shall establish an incremental salary plan for assistant clerks and for deputy clerks based on a series of salary steps corresponding to the steps contained in the Salary Plan for State Employees adopted by the Office of State Personnel, subject to a minimum and a maximum annual salary as set forth below.  On and after July 1, 1985, each assistant clerk and each deputy clerk shall be eligible for an annual step increase in his salary plan based on satisfactory job performance as determined by each clerk.  Notwithstanding the foregoing, if an assistant or deputy clerk's years of service in the office of superior court clerk would warrant an annual salary greater than the salary first established under this section, that assistant or deputy clerk shall be eligible on and after July 1, 1984, for an annual step increase in his salary plan.  Furthermore, on and after July 1, 1985, that assistant or deputy clerk shall be eligible for an increase of two steps in his salary plan, and shall remain eligible for a two-step increase each year as recommended by each clerk until that assistant or deputy clerk's annual salary corresponds to his number of years of service.  Any person covered by this subsection who would not receive a step increase in fiscal year 1994-95 because that person is at the top of the salary range as it existed for fiscal year 1993-94 shall receive a salary increase to the maximum annual salary provided by subsection (c1) of this section."
Sec. 31.  G.S. 7A-102(c1) reads as rewritten:
"(c1)	A full-time assistant clerk or a full-time deputy clerk shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks	Annual Salary
Minimum		$21,540
Maximum		37,406

Deputy Clerks	Annual Salary
Minimum		$17,222
Maximum		28,813."

MAGISTRATES/SALARY INCREASE
Sec. 32.  G.S. 7A-171.1(a)(1) reads as rewritten:
"(1)	A full-time magistrate, so designated by the Administrative Officer of the Courts, shall be paid the annual salary indicated in the table below according to the number of years he has served as a magistrate.  The salary steps shall take effect on the anniversary of the date the magistrate was originally appointed:

Table of Salaries of Full-Time Magistrates

	Number of Prior Years of Service	Annual Salary
			1994-95
	Less than 1		$18,095
	1 or more but less than 3		19,025
	3 or more but less than 5		20,896
	5 or more but less than 7		22,958
	7 or more but less than 9		25,262
	9 or more but less than 11		27,770
	11 or more		30,506.

		A 'Full-time magistrate' is a magistrate who is assigned to work an average of not less than 40 hours a week during his term of office.
		Notwithstanding any other provision of this subdivision, a full-time magistrate, who was serving as a magistrate on December 31, 1978, and who was receiving an annual salary in excess of that which would ordinarily be allowed under the provisions of this subdivision, shall not have the salary, which he was receiving reduced during any subsequent term as a full-time magistrate.  That magistrate's salary shall be fixed at the salary level from the table above which is nearest and higher than the latest annual salary he was receiving on December 31, 1978, and, thereafter, shall advance in accordance with the schedule in the table above."

COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES
Sec. 33.  The Director of the Budget shall transfer from the Reserve for Salary Increases created in Sections 3 and 4 of this act for fiscal year 1994-95 funds to the Department of Community Colleges necessary to provide an average annual salary increase of four percent (4%), including funds for the employer's retirement and Social Security contributions, commencing July 1, 1994, for all permanent full-time community college institutional personnel supported by State funds.  In addition, nonrecurring funds amounting to one percent (1%) of community colleges institutional personnel supported by State funds, including funds for employer's retirement and Social Security contributions shall also be transferred to the Department of Community Colleges to provide a one-time bonus of one percent (1%) for all institutional personnel.  The State Board of Community Colleges shall establish guidelines for providing their salary increases to community college institutional personnel.

UNIVERSITY OF NORTH CAROLINA SYSTEM - EPA SALARY INCREASES
Sec. 34.  The Director of the Budget shall transfer to the Board of Governors of The University of North Carolina sufficient funds from the Reserve for Salary Increases created in Sections 3 and 4 of this act for fiscal year 1994-95 to provide an annual average salary increase of four percent (4%), including funds for the employer's retirement and Social Security contributions, commencing July 1, 1994, for all employees of The University of North Carolina, as well as employees of the North Carolina School of Science and Mathematics, supported by State funds and whose salaries are exempt from the State Personnel Act (EPA).  In addition, nonrecurring funds amounting to one percent (1%) of total general fund supported EPA University salaries and EPA employees of the North Carolina School of Science and Mathematics shall also be transferred to the Board of Governors, including funds for employer's retirement and Social Security contributions.  These funds shall be allocated to individuals according to the rules adopted by the General Assembly, the Board of Governors, or the Board of Trustees of the North Carolina School of Science and Mathematics, as appropriate, and may not be used for any purpose other than for salary increases and necessary employer contributions provided by this section.

MOST STATE EMPLOYEES/SALARY INCREASES/1994-95
Sec. 35.  (a)	The salaries in effect June 30, 1994, of all permanent full-time State employees whose salaries are set in accordance with the State Personnel Act and who are paid from the General Fund or the Highway Fund shall be increased, on or after July 1, 1994, unless otherwise provided by this act, within funds authorized by this act consistent with the "Comprehensive Compensation Plan" enacted in Chapter 388 (Senate Bill 84) by the 1993 General Assembly.
(b)	Except as otherwise provided in this act, salaries in effect June 30, 1994, for permanent full-time State officials and persons in exempt positions that are recommended by the Governor or the Governor and the Advisory Budget Commission and set by the General Assembly shall be increased by four percent (4%), commencing July 1, 1994.
(c)	The salaries in effect June 30, 1994, for all permanent part-time State employees shall be increased on and after July 1, 1994, by pro rata amounts of the salary increases provided for permanent full-time employees covered under subsection (a) of this section.
(d)	The Director of the Budget may allocate out of special operating funds or from other sources of the employing agency, except tax revenues, sufficient funds to allow a salary increase, on and after July 1, 1994, in accordance with subsections (a), (b), or (c) of this section, including funds for the employer's retirement and Social Security contributions, of the permanent full-time and part-time employees of the agency.
(e)  Within regular Executive Budget Act procedures as limited by this act, all State agencies and departments may increase on an equitable basis the rate of pay of temporary and permanent hourly State employees, subject to availability of funds in the particular agency or department, by pro rata amounts of the four percent (4%) salary increase provided for permanent full-time employees covered by the provisions of subsection (a) of this section, commencing July 1, 1994.
(f)  The provisions of this section do not apply to employees whose salaries are determined in accordance with G.S. 7A-102 or G.S. 20-187.3(a), except for those employees who would not receive a salary increment for the 1994-95 fiscal year under G.S. 7A-102 or G.S. 20-187.3(a) because they are at the top of their salary range.

SALARY INCREASE FOR STATE-FUNDED LOCAL PROGRAMS
Sec. 36.  Of the funds appropriated from the General Fund for the Reserve for Salary Increases in Section 3 of this act for the 1994-95 fiscal year, funds shall be made available for employees in locally operated State-funded programs in an amount equivalent to a four percent (4%) across-the-board salary increase.  These employees do not receive the compensation bonus provided in this act.

PUBLIC SCHOOL EMPLOYEES' SALARY INCREASE
Sec. 37.  Funds appropriated in Sections 3 and 4 of this act in the amount of one hundred twenty-nine million fifty-six thousand five hundred five dollars ($129,056,505) are provided for salary increases, including retirement and Social Security contributions, averaging four percent (4%) plus a nonrecurring one percent (1%) across-the-board bonus for all public school employees.  For teachers, the increase would be a two percent (2%) increase in the salary schedule, the two percent (2%) experience increment included in the teacher salary schedule, and a one percent (1%) across-the-board bonus; school-based administrators (principals and assistant principals) will receive funds to implement the school-based administrator salary schedule started in 1993-94 (Section 132, Chapter 321, 1993 Session Laws) and a one percent (1%) across-the-board bonus; all other public school employee categories, which include superintendents, central office administrators, finance officers, clerical workers, teacher assistants, custodians, bus drivers, bus mechanics, and maintenance supervisors will receive funds for a four percent (4%) across-the-board increase and a one percent (1%) across-the-board bonus.

ALL STATE-SUPPORTED PERSONNEL/SALARY INCREASES
Sec. 38.  (a)	Salaries and related benefits for positions that are funded partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund shall be increased from the General Fund or Highway Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund.
(b)	The granting of the salary increases under this act does not affect the status of eligibility for salary increments for which employees may be eligible unless otherwise required by this act.
(c)	The salary increases provided in this Part are to be effective July 1, 1994, do not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, whose last workday is prior to July 1, 1994, or to employees involved in final written disciplinary procedures.  The employee shall receive the increase on a current basis when the final written disciplinary procedure is resolved.
Payroll checks issued to employees after July 1, 1994, which represent payment of services provided prior to July 1, 1994, shall not be eligible for salary increases provided for in this act.  This subsection shall apply to all employees, subject to or exempt from the State Personnel Act, paid from State funds, including public schools, community colleges, and The University of North Carolina.
(d)	Notwithstanding the provisions of Section 19.1 of Chapter 1137 of the 1979 Session Laws, as amended by Chapter 1053 of the 1981 Session Laws, G.S. 115C-12(9)a., 115C-12(16), 126-7, or any other provision of law other than G.S. 20-187.3(a) and G.S. 7A-102(c), no employee or officer of the public school system shall receive an automatic increment, and no State employee or officer shall receive a merit increment during the 1994-95 fiscal year, except as otherwise permitted by this act/or as permitted by the rules of the State Personnel Commission.
(e)  The Director of the Budget shall transfer from the Reserve for Salary Increases in Sections 3 and 4 of this act for fiscal year 1994-95 all funds necessary for the salary increases provided by this act, including funds for the employer's retirement and Social Security contributions.
(f)  Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.

SALARY-RELATED CONTRIBUTIONS/EMPLOYERS
Sec. 39.  Required employer salary-related contributions for employees whose salaries are paid from department, office, institution, or agency receipts shall be paid from the same source as the source of the employees' salary.  If an employee's salary is paid in part from the General Fund or Highway Fund and in part from department, office, institution, or agency receipts, required employer salary-related contributions may be paid from the General Fund or Highway Fund only to the extent of the proportionate part paid from the General Fund or Highway Fund in support of the salary of the employee, and the remainder of the employer's requirements shall be paid from the source that supplies the remainder of the employee's salary.  The requirements of this section as to source of payment are also applicable to payments on behalf of the employee for hospital-medical benefits, longevity pay, unemployment compensation, accumulated leave, workers' compensation, severance pay, separation allowances, and applicable disability income and disability salary continuation benefits.

PART 11.  COLLEGES AND UNIVERSITIES

UNIVERSITY OF NORTH CAROLINA COMPETITIVE FACULTY SALARY LEVELS
Sec. 40.  Of the funds appropriated in Section 3 of this act to the Board of Governors of The University of North Carolina for University Institutional Programs, the sum of eight million thirty-seven thousand seven hundred seventy-one dollars ($8,037,771) for the 1994-95 fiscal year shall be allocated by the Board of Governors for the enhancement of teaching faculty salaries as the Board of Governors considers appropriate.  These funds represent approximately one and one-half (1.5%) of teaching salary funds for those whose salaries are exempt from the State Personnel Act (EPA), including funds for employer retirement and Social Security contributions, and are in addition to the seven million one hundred thousand dollars ($7,100,000) appropriated in Chapter 321, Section 3 of the 1993 Regular Session (also see Section 101.1, Chapter 321).

AID TO PRIVATE COLLEGES/PROCEDURE
Sec. 41.  (a) Funds appropriated in Section 3 of 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, 116-22.  These funds shall provide up to five hundred fifty dollars ($550.00) per full-time equivalent North Carolina undergraduate student enrolled at a private institution as of October 1 of each fiscal 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 one thousand two hundred fifty dollars ($1,250) 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 shall 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 shall be used only for secular educational purposes at nonprofit institutions of higher learning.

PART 12.  COMMUNITY COLLEGES

COMMUNITY COLLEGE FACULTY SALARIES
Sec. 42.  State data from the Southern Region Education Board (SREB) reveals that for fiscal year 1993-94 the North Carolina Community College System ranked last among 15 southern states in salaries paid to full-time faculty. The State Board of Community Colleges currently allocates thirty-four thousand two hundred sixty-two dollars ($34,262) as the unit value for community college curriculum faculty.  While the average community college curriculum faculty salary for the system is thirty-four thousand three hundred forty-three dollars ($34,343) for the 1993-94 fiscal year, there are 30 colleges that pay less than the state average.  The State Board of Community Colleges shall direct that the funds included for competitive salaries for community college curriculum faculty be used for that purpose only.  The recommended funds, eight million four hundred two thousand eight hundred sixty dollars ($8,402,860), which provide an average salary increase of approximately four percent (4%), shall not be used to hire additional faculty and/or reduce the student/faculty ratio.  It is the intent of this recommendation that all curriculum faculty be paid on average at or above the statewide average.  The State Board shall use the funds recommended in Section 3 for compensation increases to increase the unit value, thereby providing flexibility to the colleges to hire additional faculty, if needed.

NEW AND EXPANDING INDUSTRY PROGRAM FUNDS
Sec. 43.  Notwithstanding any law to the contrary, the Department of Community Colleges may transfer available and uncommitted funds into the New and Expanded Industry Program, if it determines that there is a need to meet additional training needs over and above those currently budgeted and if the Director of the Budget concurs.

PART 13.  PUBLIC SCHOOLS

NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS
Sec. 44.  The National Board for Professional Teaching Standards (NBPTS) was established in 1987 as an independent, nonprofit organization to establish high standards for teachers' knowledge and performance and for development and operation of a national voluntary system to assess and certify teachers who meet those standards.  In order to apply for the NBPTS certification process, teachers must have three years or more of teaching experience, be currently teaching, have graduated from an accredited college or university, and hold a valid state teaching license.  Upon successful completion of a year-long process of developing a portfolio of student work and videotapes of teaching/learning activities for NBPTS review and then participating in NBPTS assessment center simulation exercises, including performance-based activities and a content knowledge examination, teachers may become NBPTS-certified.
Funds in the amount of five hundred thousand dollars ($500,000) appropriated in Section 3 of this act to the Department of Public Instruction shall be used for a one-time five thousand dollar ($5,000) bonus for State-paid teachers who complete the certification process in 1993-94 and receive NBPTS certification in 1994-95.  The appropriation also includes funds to provide payment of the NBPTS nine hundred seventy-five dollar ($975.00) assessment fee and up to five days of approved paid leave for State-paid teachers who participate in the certification process in 1994-95.
The State of North Carolina will pay the nine hundred seventy-five dollar ($975.00) NBPTS fee for teachers who have completed three years of teaching in North Carolina schools operated by local boards of education, the Department of Human Resources, the Department of Correction, or The North Carolina School of the Arts or The North Carolina School of Science and Mathematics prior to application for NBPTS certification.  Even though teachers may be eligible to receive National Board certification in more than one certification area, the State will pay the nine hundred seventy-five dollar ($975.00) fee for any teacher only once, regardless of the number of times a teacher participates in the program.  If a teacher does not complete the certification process, the teacher is required to repay the State the NBPTS fee as paid by the State.  Repayment is not required if the program is not completed due to death or permanent disability of the teacher, or other circumstances as may be recognized by the State Board of Education.  Repayment is not required for failure to receive certification if the process is completed.  The State will pay the NBPTS fee directly to NBPTS.  If the NBPTS fee is prorated, the State will pay the appropriate portion directly to NBPTS.
Upon obtaining NBPTS certification, a teacher will be eligible to receive the five thousand dollars ($5,000) one time with the stipulation that the teacher must teach in North Carolina one year within three years after receipt of the five thousand dollars ($5,000).  If a teacher does not teach in North Carolina schools for one year within three years after receipt of the five thousand dollars ($5,000), the teacher is required to repay the State the five thousand dollars ($5,000).  Repayment is not required if the teaching requirement is not completed due to death or permanent disability of the teacher, or other circumstances as may be recognized by the State Board of Education.
Appropriate regulations for the management of this program will be adopted by the State Board of Education.

WILLIE M.
Sec. 45.  Funds in the amount of five hundred thirty-one thousand thirty-seven dollars ($531,037) appropriated in Section 3 of this act to the Department of Public Instruction shall be used to fund up to an additional 119 Willie M. students at the 1993-94 rate of four thousand four hundred sixty-two dollars and fifty cents ($4,462.50) per student.  The budgeted number of Willie M. students is increased from 840 to 959.  These funds are not to be used to increase per student funding.

EDUCATIONAL TECHNOLOGY EQUIPMENT
Sec. 46.  Nonrecurring funds in the amount of twenty million dollars ($20,000,000) appropriated in Section 4 of this act to the Department of Public Instruction shall be placed in a reserve to be used towards implementing the recommendations of the School Technology Commission, as adopted by the General Assembly.

PART 14.  DEPARTMENT OF TRANSPORTATION

HIGHWAY FUND AVAILABILITY
Sec. 47.  The Highway Fund appropriations availability used in developing the 1994-95 Highway Fund budget is shown below:	($Million)
	  1994-95
Beginning Credit Balance	$     35.0

Estimated Revenues:	$    979.3
Transfer from Equipment Fund	-
Transfer to Highway Trust Fund	(9.6)

Total Highway Fund Availability	$  1,004.7

CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND APPROPRIATIONS
Sec. 48.  (a)	The General Assembly authorizes and certifies anticipated revenues of the Highway Fund as follows:
For Fiscal Year 1995-96	$1,011,900,000
For Fiscal Year 1996-97	$1,043,300,000
(b)	The General Assembly authorizes and certifies anticipated revenues of the Highway Trust Fund as follows:
For Fiscal Year 1995-96	$644,900,000
For Fiscal Year 1996-97	$662,300,000
PART 15.  DEPARTMENT OF HUMAN RESOURCES

ADOPTION SUBSIDY
Sec. 49.  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 based on a graduated rate as follows:  three hundred fifteen dollars ($315.00) per child per month for children ages 0-5, three hundred sixty-five dollars ($365.00) per child per month for children ages 6-12, and four hundred fifteen dollars ($415.00) per child per month for children ages 13-18.

FOSTER CARE
Sec. 50.  Funds appropriated in Section 3 of this act to the Department of Human Resources in the amount of four million eight hundred three thousand seven hundred ninety-five dollars ($4,803,795) shall be used to pay foster care assistance on a graduated rate based on age.  This includes three hundred fifteen dollars ($315.00) board payment per month for children ages 0-5, three hundred sixty-five dollars ($365.00) board payment per month for children ages 6-12 and four hundred fifteen dollars ($415.00) board payment per month for children ages 13-18.  Of these amounts fifteen dollars ($15.00) per month is allotted for a personal needs allowance.

DOMICILIARY CARE REIMBURSEMENT RATE INCREASE
Sec. 51.  Effective October 1, 1994, the maximum monthly rate for residents in domiciliary care facilities shall be nine hundred eighty-five dollars ($985.00) for ambulatory residents and one thousand twenty-eight dollars ($1,028) for semiambulatory residents.

PART 16.  DEPARTMENT OF AGRICULTURE

MARKETING SPECIALIST GLOBAL TRANSPARK AUTHORITY
Sec. 52.  Funds appropriated in Section 3 of this act in the amount of one hundred sixty-six thousand two hundred fourteen dollars ($166,214) to the Department of Agriculture to provide a marketing specialist at the North Carolina Global TransPark Authority in Kinston shall be used to assist farmers in marketing their products to domestic and international markets.  This position will also help tobacco farmers find alternative markets for their tobacco.

COMMISSIONER OF AGRICULTURE MEMBER OF GLOBAL TRANSPARK DEVELOPMENT COMMISSION
Sec. 53.  G.S. 63A-3(b) reads as rewritten:
"(b)	Board of Directors. – The Authority shall be governed by a Board of Directors.  The Board shall consist of at least the following 20 members:
(1)	Seven members appointed by the Governor.
(2)	Three members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121.
(3)	Three members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121.
(4)	The State Treasurer, who shall serve as an ex officio nonvoting member.
(5)	The President of the North Carolina System of Community Colleges, provided that the President of the North Carolina Community Colleges may instead appoint to the Board of Directors one member of the board of trustees of a community college or one president of a community college.  If such an appointment is made, the appointee shall serve at the pleasure of the President.
(6)	The President of The University of North Carolina, provided that the President of The University of North Carolina may instead appoint to the Board of Directors one member of the board of trustees of a constituent institution of The University of North Carolina, or one chancellor of a constituent institution of The University of North Carolina.  If such an appointment is made, the appointee shall serve at the pleasure of the President.
(7)	The Chairman of the State Ports Authority.
(8)	One member appointed by the board of county commissioners of any county in which the cargo airport complex site is located.
(9)	One member appointed by the city council of the city which is a county seat of any county in which the cargo airport complex site is located.
(10)	The Commissioner of Agriculture, or a person designated by the Commissioner.
Within 90 days after the authority acquires land, either by purchase or condemnation, for development as part of a cargo airport complex site, the board of county commissioners in any county in which a portion of the land is located and the city council of the city which is the county seat of the county shall, by resolution, each appoint a person to serve as a member of the Board.  If the board of commissioners or the city council appoints one of its own members to the Board, the county commissioner or the member of the city council who is appointed is considered to be serving on the Board as an ex officio voting member as part of the duties of the office of county commissioner or the office of city council member, in accordance with G.S. 128-1.2, and is not considered to be serving in a separate office.  Notwithstanding G.S. 116-31(h), a member of the board of trustees of a constituent institution of The University of North Carolina appointed to the Board of Directors under subdivision (6) of this subsection may concurrently serve on the board of trustees and the Board of Directors.  Notwithstanding any other provision of law, the Governor may serve on the Board of Directors by his own appointment on or after July 16, 1991, under subdivision (1) of this subsection.
As the holder of an office, each member of the Board shall take the oath required by Article VI, § 7 of the North Carolina Constitution before assuming the duties of a Board member."

NORTH CAROLINA AQUARIUMS - USE OF RESERVE FOR REPAIRS AND RENOVATIONS
Sec. 53.1.  Notwithstanding G.S. 143B-390.16, the North Carolina Aquariums are eligible to participate in allocations from the Reserve for Repairs and Renovations.

AGRICULTURE FINANCE AUTHORITY
Sec. 54.  Of the funds appropriated in Section 4 of this act to the Department of Agriculture for the Agriculture Finance Authority, two hundred fifty thousand dollars ($250,000) shall be used as a loan guarantee fund to obtain one million dollars ($1,000,000) of federal energy conservation funds to be secured by the Department of Commerce and utilized by the Agriculture Finance Authority for low-cost energy conservation loans for farmers.  The State appropriations shall be placed in a trust fund.  Interest from the trust fund may be used for administrative cost of the program by the Agriculture Finance Authority.

PART 17.  DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

FUNDS FOR VOLUNTARY REMEDIAL ACTIONS
Sec. 55.  During the 1994-95 fiscal year, the Secretary of the Department of Environment, Health, and Natural Resources may contribute from the Inactive Hazardous Sites Cleanup Fund up to ten percent (10%) of the cost, not to exceed fifty thousand dollars ($50,000) per site, of implementing a voluntary remedial action program at up to three high priority sites that substantially endanger public health or the environment.

PARTNERSHIP FOR THE SOUNDS
Sec. 56.  Of the funds appropriated in Section 4 of this act to the Department of Environment, Health, and Natural Resources for the 1994-95 fiscal year for the Partnership for the Sounds, the sum of two million seven hundred thousand dollars ($2,700,000) shall be used for construction and matching State funds for design of Visitors Centers.  Of the funds appropriated in Section 3 of this act to the Department of Environment, Health, and Natural Resources, the sum of three hundred sixty-seven thousand two hundred fifty dollars ($367,250) shall be used  to provide staffing, operating expenses, equipment, and contracts to support the facilities.

PART 18.  DEPARTMENT OF COMMERCE

INDUSTRIAL DEVELOPMENT FUND/LOCAL MATCH
Sec. 57.  Local governments requesting financial assistance from the Industrial Development Fund shall demonstrate to the satisfaction of the Department of Commerce that it would be an economic hardship for the local government to match State assistance from the Fund with local funds.

INDUSTRIAL RECRUITMENT COMPETITIVE FUND
Sec. 58.  Of the funds appropriated in Section 4 of this act to the Department of Commerce, the sum of ten million dollars ($10,000,000) for the 1994-95 fiscal year shall be used to continue within the Department of Commerce the Industrial Recruitment Competitive Fund.  The purpose of the Fund is to provide financial assistance to those businesses or industries deemed by the Governor to be vital to a healthy and growing State economy and that are making significant efforts to establish or expand in North Carolina.  Monies allocated from the Fund may be used for the following purposes:
(1)	Installation or purchase of equipment;
(2)	Structural repairs, improvements, or renovations of existing buildings to be used for expansion; and
(3)	Construction of or improvements to new or existing water, sewer, gas, or electric utility distribution lines or equipment for existing buildings, or to serve new or proposed industrial buildings used for manufacturing and industrial operations.
The Governor shall adopt guidelines and procedures for the commitment of monies from the Fund.

REGIONAL COMMISSIONS
Sec. 59.  Funds in the amount of two million four hundred thousand dollars ($2,400,000) appropriated to the Department of Commerce shall be used to further promote within the State the concept of regional economic development and regional commissions.  This recommendation is to fund the counties not included in the three existing Regional Economic Development Commissions established pursuant to G.S. 158-8.1, 158-8.2, and 158-8.3.  In addition, funds in the amount of one hundred thousand dollars ($100,000) appropriated in Section 3 of this act to the Department of Commerce shall be used to establish a full-time coordinator to provide guidance, counsel, and liaison among the various economic development regions and entities of the State.

JOB READY/SCHOOL-TO-WORK DEMONSTRATION GRANTS
Sec. 60.  JobReady is North Carolina's new school-to-work initiative to ensure that young North Carolinians have the education, training, and workplace skills to obtain a good job.  Paralleling recent federal legislation (the School-To-Work Opportunities Act), JobReady will focus on the seventy-five percent (75%) of high school graduates who do not get four-year college degrees, with special emphasis on the fifty percent (50%) who get no education or training after high school.  Emphasizing the need for education and training beyond high school, JobReady will increase the numbers of young people obtaining the 13 or 14 years of education and training which three-fourths of jobs in the 21st century will require.
JobReady's basic components are: rigorous school-based learning, work-based learning and activities to connect the two.  Serving as the rigorous school-based learning component, Tech Prep is an important part of JobReady.  The new element is the emphasis on work-based learning (i.e. apprenticeships, internships, strengthened cooperative education programs) which must be linked closely to school-based learning at the secondary and postsecondary levels.  Strong leadership and participation by employers is necessary to JobReady's success.  The willingness of employers to provide work-based learning opportunities is the critical factor in ensuring that we can build a school-to-work system that is competitive with other industrialized countries.
North Carolina is in the first phase of JobReady, which is an intensive process of planning, information gathering, and dissemination, and assessing current activities which may be building blocks for the JobReady system funded by the U.S. Department of Labor.  It is anticipated that the implementation phase of JobReady will be supported by federal funds in the 1995-96 fiscal year.
Nonrecurring funds in the amount of one million dollars ($1,000,000) appropriated in Section 4 of this act to the Department of Commerce shall be used to provide grants up to two hundred thousand dollars ($200,000) each to early demonstration sites in fiscal year 1994-95.  These demonstration sites will be selected according to criteria consistent with that required by the federal school-to-work initiative.  The selected sites will serve as role models to other North Carolina communities as they develop their local JobReady programs.  Lessons learned from the demonstration sites will be incorporated into JobReady's implementation plan.

BIOTECHNOLOGY FUNDS FOR MINORITY UNIVERSITIES
Sec. 61.  Of the funds appropriated in Section 4 of this act from the General Fund to the North Carolina Biotechnology Center for the 1994-95 fiscal year, the sum of two million dollars ($2,000,000) shall be used to continue the special biotechnology program initiative for North Carolina's Public Historically Black Universities and Pembroke State University.  This program initiative is a means to get more funds to these institutions of higher education in the short run to help them develop their biotechnology programs and a means to develop a mechanism to improve these institutions' capacity over the long term.  The Center's special initiative shall, at a minimum, provide for:
(1)	A range of program activities, including grants, designed to enhance the existing strengths and capabilities of Pembroke State University and the Public Historically Black Universities;
(2)	A Facilities and Infrastructure Review Committee to advise the Center on major program elements and priority projects that would be most helpful to these institutions; and
(3)	A Program Advisory Panel with representation from these institutions to advise and make recommendations to the Center's President and Board of Directors on funding proposals under this initiative.
The Center shall report to the General Assembly by March 15, 1995, on the use of these funds.
In awarding grant funds pursuant to this section, the Center shall ensure that the grant funds are distributed equally among the eligible universities.

MCNC
Sec. 62.  (a)	Of the funds appropriated in Sections 3 and 4 of this act to MCNC, the sum of five million nine hundred thousand dollars ($5,900,000) for the 1994-95 fiscal year shall be allocated as follows:
(1)	$4,000,000, in Section 4 of this act, for the Supercomputer Program to upgrade supercomputing capability.
(2)	$1,900,000, in Section 3 of this act, for migration of NC-REN sites to the technology of the North Carolina Information Highway and to cover operating costs at the sites equipped and added in the 1993-94 fiscal year.
(b)	MCNC shall provide the Joint Legislative Commission on Governmental Operations with quarterly reports on the use and benefits of the funds appropriated under this section.  The reports required under this subsection shall be included in the MCNC quarterly reports to the Joint Legislative Commission on Governmental Operations required under Section 295 of Chapter 321 of the 1993 Session Laws.

RURAL ECONOMIC DEVELOPMENT FUNDS
Sec. 63.  (a)	Definition. – For purposes of this section, the term "community development corporation" means a nonprofit corporation:
(1)	Chartered pursuant to Chapter 55A of the General Statutes;
(2)	Tax-exempt pursuant to section 501(c)(3) of the Internal Revenue Code of 1986;
(3)	Whose primary mission is to develop and improve low-income communities and neighborhoods through economic and related development;
(4)	Whose activities and decisions are initiated, managed, and controlled by the constituents of those local communities; and
(5)	Whose primary function is to act as deal maker and packager of projects and activities that will increase their constituencies' opportunities to become owners, managers, and producers of small businesses, affordable housing and jobs designed to produce positive cash flow and curb blight in the target community.
(b)	Community Development Grants. – Of the funds appropriated in Section 3 of this act from the General Fund to the Rural Economic Development Center, Inc., the sum of one million three hundred thousand dollars ($1,300,000) for the 1994-95 fiscal year shall be used to support community development projects and activities within the State's minority communities.  Any community development corporation as defined in this section is eligible to apply for funds.  The Rural Economic Development Center, Inc., shall establish performance-based criteria for determining which community development corporations will receive a grant and the grant amount.  Funding will also be allocated to the North Carolina Association of Community Development Corporations.
The Rural Economic Development Center, Inc., shall allocate these funds as follows:
(1)	$950,000 for direct grants to the local community development corporations that have previously received State funds for this purpose to support operations and project activities.
(2)	$100,000 for direct grants to local community development organizations that have not previously received State funds.
(3)	$200,000 to the North Carolina Association of Community Development Corporations to provide training, technical assistance, resource development, project assistance, and support for local community development corporations statewide.
(4)	$50,000 to the Rural Economic Development Center, Inc., for the 1994-95 fiscal year to be used to cover expenses in administering this act.
The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(c)	The North Carolina Community Development Initiative, Inc. – Of the funds appropriated in Section 3 of this act from the General Fund to the Rural Economic Development Center, Inc., the sum of two million dollars ($2,000,000) for the 1994-95 fiscal year shall be used to support the loan fund and operations of the North Carolina Community Development Initiative, Inc.  The Initiative shall provide operating and project activity grants to mature community development corporations that have demonstrated project and organizational capacity.
The North Carolina Community Development Initiative, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(d)	Microenterprise Loan Program. – Of the funds appropriated in Section 3 of this act to the Rural Economic Development Center, Inc., the sum of six hundred fifty thousand dollars ($650,000) for the 1994-95 fiscal year shall be used to support the loan fund and operations of the Microenterprise Loan Program.  The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(e)  The North Carolina Minority Credit Union Support Center, Inc. – Of the funds appropriated in Section 3 of this act from the General Fund to the Rural Economic Development Center, Inc., the sum of three hundred thousand dollars ($300,000) for the 1994-95 fiscal year shall be allocated to the North Carolina Minority Credit Union Support Center, Inc., to provide technical assistance to community-based credit unions.  The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(f)  The Office of State Budget and Management, the Department of Commerce, and the Rural Economic Development Center, Inc., shall ensure that funds allocated to the following organizations are disbursed consistent with provisions of the Executive Budget Act:
(1)	The North Carolina Community Development Initiative, Inc.
(2)	The North Carolina Minority Credit Union Support Center, Inc.
(3)	The Microenterprise Loan Program.
(g)  Capacity Building Grants Program. – Of the funds appropriated in Section 4 of this act from the General Fund to the Rural Economic Development Center, Inc., the sum of one million dollars ($1,000,000) for the 1994-95 fiscal year shall be used to provide grants to depressed counties and municipalities to enable them to acquire short-term capacity for immediate needs for economic development planning and writing of grant applications.  The Rural Economic Development Center Inc., shall establish standards for determining each local government's needs and shall make grants on the basis of need.
Definitions. – For the purposes of this subsection the following definitions will apply:
(1)	Economically depressed area. – Any of the following:
a.	A county that the Secretary of Commerce has designated one of the most economically depressed counties in the State pursuant to G.S. 143B-437A;
b.	That part of a rural county whose poverty rate is at least one hundred fifty percent (150%) of the State poverty rate.  For the purpose of this subsection, the poverty rate is the percentage of the population with income below the latest annual federal poverty guidelines issued by the United States Department of Health and Human Services;
c.	That part of a rural county whose rate of unemployment is at least double the State rate of unemployment;
d.	That part of a rural county that experiences an actual or imminent loss of jobs in a number that is equal to or exceeds five percent (5%) of the total number of jobs in the part.
(2)	Rural county. – A county that the United States Office of Management and Budget has not designated as a metropolitan county.
		The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations and the Department of Commerce on the use of the funds allocated in this subsection and on the outcomes achieved by the program.
(h)  The North Carolina Capital Access Program. – Of the funds appropriated in Section 4 of this act from the General Fund to the Rural Economic Development Center, Inc., the sum of one million dollars ($1,000,000) for the 1994-95 fiscal year shall be used to establish the North Carolina Capital Access Program.  The Program shall leverage this public investment along with private sector resources to stimulate additional financing opportunities for a broad portfolio of small business concerns in North Carolina.  The Program shall encourage commercial banks and other depository institutions to provide access to debt capital, thereby promoting a more effective and efficient debt market to provide economic opportunity, create jobs, enhance productivity, and spur innovation.
(1)	Definitions. – The following definitions apply in this act:
a.	Financial institution. – Any federally chartered or State-chartered commercial bank, savings and loan, savings bank, or credit union;
b.	Participating financial institution. – Any financial institution that has entered into a participation agreement with the Center in accordance with the provisions set forth in this subsection;
c.	Enrolled loan. – Loan made by a participating financial institution in accordance with this subsection.
(2)	The Center may enter into participation agreements with any financial institution determined to have sufficient lending experience and financial managerial capacity to participate in the Program.
(3)	Participating financial institutions. – Upon entering into the participation agreement with the Center, the financial institution shall become a participating financial institution eligible to enroll loans under the Program.
(4)	The Rural Economic Development Center, Inc., shall administer the Program as established in this subsection and monitor the Program to ensure compliance with applicable State and federal laws, rules, and relevant court decisions.
(5)	The Program will have as a goal to leverage public funds with private sector resources on the basis of 20 private dollars to every 1 public dollar.
(6)	Of the funds appropriated for the Capital Access Program, the sum of fifty thousand dollars ($50,000) for the 1994-95 fiscal year shall be used to cover expenses in administering this Program.
The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the implementation and operation of the Program.

STATE GAMES
Sec. 64.  Of the funds appropriated in Section 4 of this act to the Department of Environment, Health, and Natural Resources, the sum of one hundred sixty thousand dollars ($160,000) shall be used for the State Games of North Carolina.

YADKIN/PEE DEE LAKES PROJECT
Sec. 65.  Of the funds appropriated in Section 4 of this act to the Department of Commerce, the sum of two hundred fifty thousand dollars ($250,000) shall be used for a one-time grant to support the Yadkin/Pee Dee Lakes Project.

RESEARCH TRIANGLE WORLD TRADE CENTER
Sec. 66.  Of the funds appropriated in Section 4 of this act to the Department of Commerce, the sum of two hundred ninety-four thousand dollars ($294,000) shall be used to support the Research Triangle Park World Trade Center.  These funds will support the activities of its teleconferencing and computer information center, an audiovisual classroom and library.

NORTH CAROLINA COALITION OF FARM AND RURAL FAMILIES, INC.
Sec. 67.  Of the funds appropriated in Section 3 of this act to the Department of Commerce, the sum of two hundred fifty thousand dollars ($250,000) shall be used for the Small Farm Economic Development Project operated by the North Carolina Coalition of Farm and Rural Families, Inc.

LAND LOSS PREVENTION PROJECT, INC.
Sec. 68.  Of the funds appropriated in Section 3 of this act to the Department of Commerce, the sum of three hundred thousand dollars ($300,000) shall be used to provide for legal representation to low-income, financially distressed small farmers through the Land Loss Prevention Project, Inc.

NORTH CAROLINA INSTITUTE FOR MINORITY ECONOMIC DEVELOPMENT, INC.
Sec. 69.  Of the funds appropriated to the Department of Commerce in this act, the sum of five hundred fifty thousand dollars ($550,000) shall be used for the purpose of fostering minority economic development within the State through policy analysis, information and technical assistance, and resource expansion through the North Carolina Institute for Minority Economic Development, Inc.

PART 19.  ECONOMIC DEVELOPMENT PLAN

ECONOMIC DEVELOPMENT BOARD/ECONOMIC DEVELOPMENT STRATEGIC PLAN
Sec. 70.  (a) Funds in the amount of one million seven hundred ten thousand dollars ($1,710,000) appropriated in Sections 3 and 4 of this act to the Department of Commerce shall be used to implement the Economic Development Strategic Plan as recommended by the Economic Development Board.  The following items will be funded:
(1)	$900,000 for implementation of the Department of Commerce Economic Development Information System (EDIS) to make better information available to economic developers across the State.
(2)	$100,000 nonrecurring for development of the Economic Development Resource Center to make resources available from across the State via telecommunications.
(3)	$500,000 for increased tourism promotion funding for the Division of Travel and Tourism by continuing a five hundred thousand dollar ($500,000) nonrecurring appropriation provided for this purpose in 1993-94.
(4)	$60,000 to provide funding for the Economic Development Institute to increase the technical skills and capacity of people associated with economic development activities and projects on the local level.  The Institute will take maximum advantage of the existing resources available through the university system, particularly the Basic Industrial Development Course at the University of North Carolina at Chapel Hill.
(5)	$100,000 to conduct an audit in conjunction with the Department of Revenue to assess business taxes, including direct and indirect taxes, and the effect of tax credits.
(6)	Assess the technical assistance and training needs of minority and other disadvantaged businesses.
(b)	Funds in the amount of five million two hundred thousand dollars ($5,200,000) appropriated in Section 4 of this act to the Department of Environment, Health, and Natural Resources shall be used to implement the Economic Development Strategic Plan as recommended by the Economic Development Board.  The following items will be funded:
(1)	$5,000,000 to fund additional grants to high unit cost areas to reduce the cost of providing new and expanded wastewater treatment capacity in low-wealth areas.
(2)	$50,000 nonrecurring to accelerate the ongoing review of environmental permitting procedures to streamline administration and reduce delays.
(3)	$100,000 nonrecurring to establish a protocol of assessing the economic costs and environmental benefits of new and existing regulations.
(4)	$50,000 to develop and design jointly with the Department of Commerce ways to identify clean industries.

PART 20.  MISCELLANEOUS PROVISIONS

EXECUTIVE BUDGET ACT APPLIES
Sec. 71.  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.

MOST TEXT APPLIES ONLY TO 1994-95
Sec. 72.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 1994-95 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 1994-95 fiscal year.

1993-94 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 73.  (a)	Except where expressly repealed or amended by this act, the provisions of Chapters 321 and 561 of the 1993 Session Laws and Chapter 24 of the 1994 Extra Session Laws remain in effect.
(b)	Notwithstanding any modifications by this act in the amounts appropriated, except where expressly repealed or amended, the limitations and directions for the 1994-95 fiscal year in Chapters 321 and 561 of the 1993 Session Laws and Chapter 24 of the 1994 Extra Session Laws that applied to appropriations to particular agencies or for particular purposes apply to the newly enacted appropriations and budget reductions of this act for those same particular purposes.

EFFECT OF HEADINGS
Sec. 74.  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.

SEVERABILITY CLAUSE
Sec. 75.  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.

EFFECTIVE DATE
Sec. 76.  Except as otherwise provided, this act becomes effective July 1, 1994.