GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 327*

Short Title:  GPAC/Longevity Eliminated.	(Public)
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Sponsors: (by request) Representatives Diamont, Blue, Hensley, H. Hunter, G. Miller, Nesbitt, and Robinson.
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Referred to:  Public Employees.
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February 25, 1993

A BILL TO BE ENTITLED
AN ACT TO IMPLEMENT A RECOMMENDATION OF THE GOVERNMENT PERFORMANCE AUDIT COMMITTEE TO DISCONTINUE LONGEVITY PAY SCHEDULES, EXCEPT AS LIMITED BY THE NORTH CAROLINA CONSTITUTION.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 7A-10(c) reads as rewritten:
"(c)	If the Chief Justice or an Associate Justice was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay during that officer's continuance in that office at the rate applicable on June 30, 1993, as required by Article IV, Section 21 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess.  Longevity pay shall be considered part of total annual compensation for the purpose of G.S. 7A-39.2."
Sec. 2.  G.S. 7A-18(b) reads as rewritten:
"(b)	If the judge was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay during that officer's continuance in that office at the rate applicable on June 30, 1993, as required by Article IV, Section 21 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess. Longevity pay shall be considered part of total annual compensation for the purpose of G.S. 7A-39.2."
Sec. 3.  G.S. 7A-39.2 reads as rewritten:
"§ 7A-39.2.  Age and service requirements for retirement of justices of the Supreme Court and judges of the Court of Appeals.
(a)	Any justice of the Supreme Court or judge of the Court of Appeals who has attained the age of 65 years, and who has served for a total of 15 years, whether consecutive or not, on the Supreme Court, the Court of Appeals, or the superior court, or as Administrative Officer of the Courts, or in any combination of these offices, may retire from his present office and receive for life compensation equal to two thirds of the total annual compensation, but excluding any payments in the nature of reimbursement for expenses, from time to time received by the occupant or occupants of the office from which he retired.
(b)	Any justice of the Supreme Court or judge of the Court of Appeals who has attained the age of 65 years, and who has served as justice or judge, or both, in the Appellate Division for 12 consecutive years may retire and receive for life compensation equal to two thirds of the total annual compensation, but excluding any payments in the nature of reimbursement for expenses, from time to time received by the occupant or occupants of the office from which he retired.
(c)	Any justice or judge of the Appellate Division, who has served for a total of 24 years, whether continuously or not, as justice of the Supreme Court, judge of the Court of Appeals, judge of the superior court, or Administrative Officer of the Courts, or in any combination of these offices, may retire, regardless of age, and receive for life compensation equal to two thirds of the total annual compensation, but excluding any payments in the nature of reimbursement for expenses, from time to time received by the occupant or occupants of the office from which he retired.  In determining eligibility for retirement under this subsection, time served as a district solicitor of the superior court prior to January 1, 1971, may be included, provided the person has served at least eight years as a justice, judge, or Administrative Officer of the Courts, or in any combination of these offices.
(d)	For purposes of this section, the 'occupant or occupants of the office from which' the retired judge retired will be deemed to be a judge or justice of the Appellate Division holding the same office and with the same service as the retired judge had immediately prior to retirement."
Sec. 4.  G.S. 7A-44(b) reads as rewritten:
"(b)	If the judge was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay during that officer's continuance in office at the rate applicable on June 30, 1993, as required by Article IV, Section 21 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess.  Longevity pay shall be considered part of total annual compensation for the purpose of G.S. 7A-51."
Sec. 5.  G.S. 7A-51 reads as rewritten:
"§ 7A-51.  Age and service requirements for retirement of judges of the  superior court and of the Administrative Officer of the Courts.
(a)	Any judge of the superior court, or Administrative Officer of the Courts, who has attained the age of sixty-five years, and who has served for a total of fifteen years, whether consecutive or not, as a judge of the superior court, or as Administrative Officer of the Courts, or as judge of the superior court and as Administrative Officer of the Courts combined, may retire and receive for life compensation equal to two thirds of the total annual compensation, and additional payment for service as senior resident superior court judge, but excluding any payments in the nature of reimbursement for expenses or subsistence allowances, from time to time received by the occupant of the office from which he retired.
(b)	Any judge of the superior court, or Administrative Officer of the Courts, who has served for twelve years, whether consecutive or not, as a judge of the superior court, or as Administrative Officer of the Courts, or as judge of the superior court and as Administrative Officer of the Courts combined may, at age sixty-eight, retire and receive for life compensation equal to two thirds of the total annual compensation, and additional payment for service as senior resident superior court judge, but excluding any payments in the nature of reimbursement for expenses or subsistence allowances, from time to time received by the occupant of the office from which he retired.
(c)	Any person who has served for a total of twenty-four years, whether continuously or not, as a judge of the superior court, or as Administrative Officer of the Courts, or as judge of the superior court and as Administrative Officer of the Courts combined, may retire, regardless of age, and receive for life compensation equal to two thirds of the total annual compensation, and additional payment for service as senior resident superior court judge, but excluding any payments in the nature of reimbursement for expenses or subsistence allowances, from time to time received by the  occupant of the office from which he retired.  In determining whether a person meets the requirements of this subsection, time served as district attorney of the superior court prior to January 1, 1971, may be included, so long as the person has served at least eight years as a judge of the superior court, or as Administrative Officer of the Courts, or as judge of the superior court and Administrative Officer of the Courts combined.
(d)	Repealed by Session Laws 1971, c. 508, s. 3.
(e)	For purposes of this section, the 'occupant or occupants of the office from which' the retired judge retired will be deemed to be a superior court judge holding the same office and with the same service as the retired judge had  immediately prior to retirement."
Sec. 6.  G.S. 7A-65 reads as rewritten:
"§ 7A-65.  Compensation and allowances of district attorneys and assistant district attorneys.
(a)	The annual salary of district attorneys and full-time assistant district attorneys shall be as provided in the Current Operations Appropriations Act. When traveling on official business, each district attorney and assistant district attorney is entitled to reimbursement for his subsistence and travel expenses to the same extent as State employees generally.
(b)	Repealed by Session Laws 1985, c. 689, s. 2, effective July 11, 1985.
		."
Sec. 7.  G.S. 7A-101(c) is repealed.
Sec. 8.  G.S. 7A-144(b) reads as rewritten:
"(b)	If the judge was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay during that officer's continuance in office at the rate applicable on June 30, 1993, as required by Article IV, Section 21 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 8.1.  G.S. 7A-171.1(a)(5) is repealed.
Sec. 9.  G.S. 7A-341 reads as rewritten:
"§ 7A-341.  Appointment and compensation of Director.
The Director shall be appointed by the Chief Justice of the Supreme Court, to serve at his pleasure.  He shall receive the annual salary provided in the Current Operations Appropriations Act, payable monthly, and reimbursement for travel and subsistence expenses at the same rate as State employees generally	.  Service as Director shall be equivalent to service as a superior court judge for the purposes of entitlement to retirement pay or to retirement for disability."
Sec. 10.  G.S. 7A-342 reads as rewritten:
"§ 7A-342.  Appointment and compensation of assistant director and other employees.
The assistant director shall also be appointed by the Chief Justice, to serve at his pleasure. The assistant director shall receive the annual salary provided in the Current Operations Appropriations Act, payable monthly, and reimbursement for travel and subsistence expenses at the same rate as State employees generally	.
The Director may appoint such other assistant and employees as are  necessary to enable him to perform the duties of his office."
Sec. 11.  G.S. 7A-465(b) reads as rewritten:
"(b)	The public defender shall be an attorney licensed to practice law in North Carolina, and shall devote his full time to the duties of his office.
."
Sec. 12.  G.S. 7A-467(d) is repealed.
Sec. 13.  G.S. 7A-751 reads as rewritten:
"§ 7A-751.  Agency head; powers and duties.
The head of the Office of Administrative Hearings is the Chief Administrative Law Judge.  He shall serve as Director and have the powers and duties conferred on him by this Chapter and the Constitution and laws of this State.  His salary shall be fixed by the General Assembly in the Current Operations Appropriations Act.
."
Sec. 14.  G.S. 20-187.3(a) reads as rewritten:
"(a)	The Secretary of Crime Control and Public Safety shall not make or permit to be made any order, rule, or regulation requiring the issuance of any minimum number of traffic citations, or ticket quotas, by any member or members of the State Highway Patrol.  Pay and promotions of members of the Highway Patrol shall be based on their overall job performance and not on the basis of the volume of citations issued or arrests made. The provisions of G.S. 126-7 shall not apply to members of the State Highway Patrol.  Members of the Highway Patrol shall, however, be subject to salary classes and ranges for service as are applicable to other State employees generally.  Beginning July 1, 1985, and annually thereafter, each member of the Highway Patrol shall be granted a salary increase in an amount corresponding to the increments between steps within the salary range established for the class to which the member's position is assigned by the State Personnel Commission, not to exceed the maximum of each applicable salary range."
Sec. 15.  G.S. 58-2-10 reads as rewritten:
"§ 58-2-10.  Salary of Commissioner.
The salary of the Commissioner shall be set by the General Assembly in the Current Operations Appropriations Act.  If the Commissioner was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay until December 31, 1996, during continuance in office at the rate applicable on June 30, 1993, as required by Article III, Section 9 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 16.  G.S. 62-10(h) reads as rewritten:
"(h)	The salary of each commissioner shall be the same as that fixed from time to time for judges of the superior court except that the commissioner designated as chairman shall receive one thousand dollars ($1,000) additional per annum.  "
Sec. 17.  G.S. 95-2 reads as rewritten:
"§ 95-2.  Election of Commissioner; term; salary; vacancy.
The Commissioner of Labor shall be elected by the people in the same manner as is provided for the election of the Secretary of State.  The term of office of the Commissioner of Labor shall be four years, and the salary of the Commissioner of Labor shall be set by the General Assembly in the Current Operations Appropriations Act.  Any vacancy in the office shall be filled by the Governor, until the next general election.  The office of the Department of Labor shall be kept in the City of Raleigh and shall be provided for as are other public offices of the State.  If the Commissioner was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay until December 31, 1996, during continuance in office at the rate applicable on June 30, 1993, as required by Article III, Section 9 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 18.  G.S. 106-11 reads as rewritten:
"§ 106-11.  Salary of Commissioner of Agriculture.
The salary of the Commissioner of Agriculture shall be set by the General Assembly in the Current Operations Appropriations Act.  If the Commissioner was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay until December 31, 1996, during continuance in office at the rate applicable on June 30, 1993, as required by Article III, Section 9 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 19.  G.S. 114-7 reads as rewritten:
"§ 114-7.  Salary of the Attorney General.
The salary of the Attorney General shall be set by the General Assembly in the Current Operations Appropriations Act.  If the Attorney General was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay until December 31, 1996, during continuance in office at the rate applicable on June 30, 1993, as required by Article III, Section 9 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 20.  G.S. 115C-20 reads as rewritten:
"§ 115C-20.  Office and salary.
The Superintendent of Public Instruction shall keep his office in the Education Building in Raleigh, and his salary shall be set by the General Assembly in the Current Operations Appropriations Act.  If the Superintendent was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay until December 31, 1996, during continuance in office at the rate applicable on June 30, 1993, as required by Article III, Section 9 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 21.  G.S. 115C-302(d) is repealed.
Sec. 22.  G.S. 115C-316(c) is repealed.
Sec. 23.  G.S. 126-7(d) is repealed.
Sec. 24.  G.S. 138-4 reads as rewritten:
"§ 138-4.  Governor to set salaries of administrative officers; exceptions.
The salaries of all State administrative officers not subject to the State Personnel Act shall be set by the Governor, unless a law provides otherwise.
Whenever by law it is provided that a salary shall be fixed or set by the General Assembly in the Current Operations Appropriations Act, and that office or position is filled by appointment of the Governor, or the appointment is subject to the approval of the Governor, or is made by a commission a majority of whose members are appointed by the Governor, then the Governor may, increase or decrease the salary of a new appointee by a maximum of ten percent (10%) over or under the salary of that position as provided in the Current Operations Appropriations Act, such increased or decreased salary to remain in effect until changed by the General Assembly or until the end of the fiscal year, whichever occurs first.  The Governor under this paragraph may not increase the salary of any nonelected official above the level set in the Current Operations Appropriations Act for any member of the Council of State.  This section does not apply to any office filled by election by the people, and does not apply to any office in the legislative or judicial branches.
Prior to taking any action under this section, the Governor may consult with the Advisory Budget Commission.
."
Sec. 25.  G.S. 143-23(a1) reads as rewritten:
"(a1)	No transfers may be made between objects or line items in the budget of any department, institution, or other spending agency; however, with the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for an object or line item if the overexpenditure is:
(1)	In a purpose or program for which funds were appropriated for that fiscal period and the total amount spent for the purpose or program is no more than was appropriated for the purpose or program for the fiscal period;
(2)	Required to continue a purpose or program because of unforeseen events, so long as the scope of the purpose or program is not increased;
(3)	Required by a court, Industrial Commission, or administrative hearing officer's order or award or to match unanticipated federal funds;
(4)	Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; or
(5)	Required to call out the National Guard.
The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office the reason if the amount expended for a purpose or program is more than the amount appropriated for it from all sources.  If the overexpenditure was authorized under subdivision (2)	of this subsection, the Director of the Budget shall identify in the report the unforeseen event that required the overexpenditure.
Funds appropriated for salaries and wages are also subject to the limitation that they may only be used for (i)	salaries and wages or for premium pay, overtime pay, longevity to the extent authorized by law for certain elected officials holding office on June 30, 1993, unemployment compensation, workers' compensation, temporary wages, contracted personal services, moving expenses, payment of accumulated annual leave, certain awards to employees, tort claims, and employer's social security, retirement, and hospitalization payments; or (ii) uses for which over expenditures are permitted by subdivisions (3), (4), and (5) of this subsection but the Director of the Budget shall include such use and the reason for it in his quarterly report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office.
Lapsed salary funds that become available from vacant positions are also subject to the limitation that they may not be used for new permanent employee positions or to raise the salary of existing employees.
	The requirements in this section that the Director of the Budget report to the Joint Legislative Commission on Governmental Operations shall not apply to expenditures of receipts by entities that are wholly receipt supported, except for entities supported by the Wildlife Resources Fund."
Sec. 26.  G.S. 143-34.1(b) reads as rewritten:
"(b)	Required employer salary-related contributions for retirement benefits, death benefits, disability salary continuation and Social Security for employees whose salaries are paid from general fund or highway fund revenues, or from department, office, institutional or agency receipts, or from nonstate funds, shall be paid from the same source as the source of the employees' salaries.  In those instances in which an employee's salary is paid in part from the general fund, or the highway fund, and in part from the department, office, institutional or agency receipts, or from nonstate funds, the required salary-related contributions shall be paid from the general fund, or the highway fund, only to the extent of the proportionate part paid from the general fund, or highway fund, in support of the salary of such employee, and the remainder of the employer's contribution requirements shall be paid from the same source which supplies the remainder of such employee's salary.  The requirements of this section as to the source of payment are also applicable to payments on behalf of the employee for hospital-medical insurance, longevity payments to the extent authorized by law for certain elected officials holding office on June 30, 1993, salary increments, and legislative salary increases.  The State Controller shall approve the method of payment by State departments, offices, institutions and agencies for employer salary-related requirements of this section, and determine the applicability of the section to an employer's salary-related contribution or payment in behalf of an employee."
Sec. 27.  G.S. 147-35 reads as rewritten:
"§ 147-35.  Salary of Secretary of State.
The salary of the Secretary of State shall be set by the General Assembly in the Current Operations Appropriations Act.  If the Secretary of State was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay until December 31, 1996, during continuance in office at the rate applicable on June 30, 1993, as required by Article III, Section 9 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 28.  G.S. 147-64.1(b) reads as rewritten:
"(b)	If the State Auditor was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay until December 31, 1996, during continuance in office at the rate applicable on June 30, 1993, as required by Article III, Section 9 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 29.  G.S. 147-65 reads as rewritten:
"§ 147-65.  Salary of State Treasurer.
The salary of the State Treasurer shall be as established in the Current Operations Appropriations Act.  If the State Treasurer was receiving longevity pay on June 30, 1993, that officer shall continue receiving longevity pay until December 31, 1996, during continuance in office at the rate applicable on June 30, 1993, as required by Article III, Section 9 of the Constitution.  No increase in salary granted to such officer subsequent to June 30, 1993, shall apply to a person receiving longevity pay during that officer's continuance in office until the total amount of salary increases subsequent to June 30, 1993, exceeds the amount of longevity pay, in which case the officer shall receive the excess."
Sec. 30.  Section 72(a) of Chapter 900 of the 1991 Session Laws reads as rewritten:
"(a)	The Director of the Budget may transfer from the Reserve for Salary Increases for the 1992-93 fiscal year funds necessary to implement the teacher salary schedule set out in subsection (b) of this section, including funds for the employer's retirement and social security contributions, commencing July 1, 1992, for all teachers whose salaries are supported from the State's General Fund.  These funds shall be allocated to individuals according to rules adopted by the State Board of Education and the Superintendent of Public Instruction.  "
Sec. 31. Chapter 126 of the General Statutes is amended by adding a new section to read:
"§ 126-4.1.  No longevity pay.
No longevity pay system may apply to any State employee or State-paid teacher after June 30, 1993, notwithstanding whether such employee is otherwise subject to the provisions of this Chapter."
Sec. 32.  Each agency, institution, or department may use any funds appropriated for longevity pay, the authority for which was repealed by Sections 14, 22, or 23 of this act, to increase the salary of employees of that agency, institution, or department.
Sec. 33.  This act becomes effective June 30, 1993.