GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	2 

SENATE BILL 1505
Appropriations Committee Substitute with Amendments A,B,C,D,E,F,G,H Adopted 6/2/94

Short Title:  Budget Modification 1.	(Public)
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Sponsors:
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Referred to:  
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May 25, 1994

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE CURRENT OPERATIONS APPROPRIATIONS ACT OF 1993, TO MAKE APPROPRIATIONS FOR CAPITAL IMPROVEMENTS FOR THE 1994-95 FISCAL YEAR, 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 and Capital Improvements Appropriations Act of 1994."

TITLE I. CURRENT OPERATIONS

PART 1.  GENERAL FUND APPROPRIATIONS

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	$   3,604,271

General Assembly	1,776,250

Office of the Governor
01.	Office of the Governor	279,142
02.	Office of State Budget and Management	37,089
03.	Office of State Planning	184,536

Department of Secretary of State	133,737

Department of State Auditor	417,719

Department of State Treasurer	595,173

Public Education
01.	Department of Public Instruction	4,250,000
02.	State Aid to Local School Administrative Units	5,734,526
Total Public Education	9,984,526

Department of Justice	403,455

Department of Administration	(26,422)

Department of Agriculture	1,676,052

Department of Labor	741,470

Department of Insurance	1,303,524

Department of Environment, Health, and Natural Resources	(490,299)

Department of Human Resources
01.	Secretary's Office	1,675,077
02.	Division of Aging	(27,497)
03.	Schools for the Deaf and Hard of Hearing	271,496
04.	Social Services	(936,761)
05.	Medical Assistance	(69,564,355)
06.	Services for the Blind	84,552
07.	Division of Mental Health, Developmental Disabilities,
and Substance Abuse Services	13,161,569
08.	Division of Facility Services	755,799
09.	Division of Vocational Rehabilitation Services	(97,254)
10.	Division of Youth Services	(318,792)
11.	Division of Child Development	26,498,199
Total Department of Human Resources	(28,497,967)

Department of Correction	4,232,941

Department of Commerce
01.	Commerce	5,575,204
02.	Microelectronics Center	3,313,000
03.	Rural Economic Development Center	100,000
04.	Biotechnology Center	1,000,000

Department of Revenue	5,108,963

Department of Cultural Resources	228,545

Department of Crime Control and Public Safety	735,499

Office of the State Controller	2,552,138

University of North Carolina - Board of Governors
01.	University of North Carolina:
a.	General Administration	(72,774)
b.	Lump-sum - Institutional Programs	6,529,848
c.	Related Educational Programs	4,057,000
02.	University of North Carolina at Chapel Hill
a.	Academic Affairs	(780,867)
b.	Health Affairs	(357,047)
c.	Area Health Education Centers	(18,236)
03.	North Carolina State University at Raleigh
a.	Academic	(675,486)
b.	Agricultural Research Service	1,133,910
c.	Agricultural Extension Services	(90,442)
04.	University of North Carolina at Greensboro	(178,462)
05.	University of North Carolina at Charlotte	(128,039)
06.	University of North Carolina at Asheville	194,587
07.	University of North Carolina at Wilmington	(109,269)
08.	East Carolina University
a.	Academic	(261,212)
b.	Health Affairs	(300,443)
09.	North Carolina Agricultural and Technical State University	(172,122)
10.	Western Carolina University	(118,031)
11.	Appalachian State University	(171,442)
12.	Pembroke State University	(13,610)
13.	Winston-Salem State University	(53,810)
14.	Elizabeth City State University	(57,330)
15.	Fayetteville State University	35,403
16.	North Carolina Central University	(90,992)
17.	North Carolina School of the Arts	(25,823)
18.	North Carolina School of Science and Mathematics	327,472
19.	University of North Carolina Hospitals at Chapel Hill	(201,782)
Total University of North Carolina - Board of Governors	8,401,001

Department of Community Colleges	10,178,824

State Board of Elections	283,905

Office of State Budget and Management
01.	Reserve for Salary Increases
a.	4% Salary Increase	213,560,000
b.	Reduction in balance of 2% Salary Increase	(1,757,024)
c.	Locally Operated Programs	13,229,194
02.	Reserve for Salary Adjustments	500,000
03.	Reserve for Retiree 30% Reduction	(16,318)
04.	Debt Service	 25,723,695
05.	Subsistence Allowance Increase	  1,600,000

GRAND TOTAL CURRENT OPERATIONS/GENERAL FUND	$ 286,671,823

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

Judicial Department	$   4,574,946

General Assembly	3,200,000

Office of the Governor
01.	Housing Finance Agency	3,650,000
02.	Office of State Budget and Management -
Special Appropriations	12,135,000

Department of State Auditor	324,680

Public Education
01.	Department of Public Instruction	1,200,000
02.	State Aid to Local School Administrative Units	42,193,048
Total Public Education	43,393,048

Department of Justice	796,562

Department of Administration	150,000

Department of Agriculture	5,700,000

Department of Labor	750,000

Department of Environment, Health, and Natural Resources	4,787,000

Department of Human Resources
01.	Social Services	915,167
02.	Division of Child Development	1,300,000
03.	Medical Assistance	50,000
04.	Division of Mental Health, Developmental Disabilities,
and Substance Abuse Services	16,600,000
Total Department of Human Resources	18,865,167

Department of Correction	2,376,932

Department of Commerce
01.	Commerce	21,628,459
02.	Technological Development Center	2,500,000
03.	Rural Economic Development Center	6,500,000

Department of Revenue	5,180,776

Office of the State Controller	5,000,000

Department of Cultural Resources	6,135,000

Department of Crime Control and Public Safety	540,363

University of North Carolina - Board of Governors
01.	University Institutional Programs	11,178,169
02.	University of North Carolina at Chapel Hill
a.	Academic Affairs	238,358
03.	North Carolina State University at Raleigh
a.	Cooperative Extension Service	1,465,000
Total University of North Carolina - Board of Governors	12,881,527

Department of Community Colleges	13,100,000

State Board of Elections	1,657,500

Office of State Budget and Management
01.	Reserve for Salary Increases (Compensation/
Performance Bonus)	60,419,340
02.	Reserve for Restoring Paydate	120,000,000
03.	Reserve for OSHA - Bloodborne Pathogens Standard	1,000,000

Savings Reserve Account	  33,983,120

GRAND TOTAL CURRENT OPERATIONS/GENERAL FUND - 
NONRECURRING	$ 391,229,420

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	$    (531,000)
02.	Division of Highways
a.	Ferry Operations	1,300,000
03.	Division of Motor Vehicles	912,347
04.	Reserve for Salary Increases	14,400,000

GRAND TOTAL CURRENT OPERATIONS/HIGHWAY FUND	$  16,081,347

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	4,300,000
b.	State Maintenance
(01)	Primary	3,027,294
(02)	Secondary	5,305,273
(03)	Urban	796,620
c.	Ferry Operations	841,000
03.	Division of Motor Vehicles	3,914,781
04.	State Aid to Municipalities	4,300,000
05.	State Aid for Public Transportation	5,800,000
06.	State Aid for Railroads	400,000
07.	Reserve for Salary Increases (Compensation/
Performance Bonus)	3,600,000
08.	Battery Dump Site Cleanup	115,000

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	$  37,101,968

PART 4.1.  HIGHWAY TRUST FUND

Sec. 6.1.  In addition to the appropriations made by Section 5 of Chapter 321 of the 1993 Session Laws, appropriations from the Highway Trust Fund are made for the 1994-95 fiscal year as follows:

01.	Intrastate System	$  42,564,140
02.	Secondary Roads Construction	4,815,971
03.	Urban Loops	17,211,167
04.	State Aid - Municipalities	4,465,972
05.	Program Administration	2,742,750
06.	Transfer to General Fund	          -    

GRAND TOTAL/HIGHWAY TRUST FUND	$  71,800,000

PART 4.2.  BLOCK GRANT APPROPRIATIONS

Requested by:   Senator Richardson
DHR BLOCK GRANT PROVISIONS
Sec. 6.2. (a)	Appropriations from federal block grant funds are made for the fiscal year ending June 30, 1995, according to the following schedule:

COMMUNITY SERVICES BLOCK GRANT

01.	Community Action Agencies	$  9,455,796
02.	Limited Purpose Agencies	525,322

03.	Department of Human Resources
to administer and monitor
the activities of the
Community Services Block Grant	525,322

TOTAL COMMUNITY SERVICES BLOCK GRANT	$ 10,506,440

SOCIAL SERVICES BLOCK GRANT

01.	County Departments of Social Services	$ 42,253,005

02.	Allocation for In-Home Services provided
by County Departments of
Social Services	458,722

03.	Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services	5,524,186

04.	Division of Services for the Blind	3,205,711

05.	Division of Youth Services	1,052,674

06.	Division of Facility Services	343,341

07.	Division of Aging	336,157

08.	Day Care Services	12,158,899

09.	Office of Citizen Affairs	55,458

10.	State Administration and State Level
Contracts	3,473,524

11.	Voluntary Sterilization Funds	98,710

12.	Transfer to Maternal and Child
Health Block Grant	1,585,833

13.	Adult Day Care Services	599,551

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

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

16.	Transfer to Preventive Health
Block Grant for Emergency Medical Services
and Basic Public Health Services	633,128

17.	Allocation to Preventive Health Block
Grant for AIDS Education	81,001

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

19.	Allocation to Home and Community Care
Block Grant for Persons Age 60
and Older	1,649,077

20.	Allocation to the Office of Economic
Opportunity for Elderly and
Handicapped Services	49,954

21.	Division of Services for the Deaf
and the Hard of Hearing	31,611

22.	Division of Child Development for
Head Start	147,467

TOTAL SOCIAL SERVICES BLOCK GRANT	$ 74,617,381

LOW INCOME ENERGY BLOCK GRANT

01.	Energy Assistance Programs	$ 17,934,847

02.	Crisis Intervention	5,411,563

03.	Administration	2,413,779

04.	Weatherization Program	2,100,000

05.	Indian Affairs	33,022

TOTAL LOW INCOME ENERGY BLOCK GRANT	$ 27,893,211

MENTAL HEALTH SERVICES BLOCK GRANT

01.	Provision of Community-Based
Services in accordance with the
Mental Health Study Commission's
Adult Severe and Persistently
Mentally Ill Plan	$ 3,794,179

02.	Provision of Community-Based
Services in accordance with the
Mental Health Study Commission's
Child Mental Health Plan	1,802,819

03.	Administration	514,037

TOTAL MENTAL HEALTH SERVICES BLOCK GRANT	$ 6,111,035

BLOCK GRANT FOR THE PREVENTION AND 
TREATMENT OF SUBSTANCE ABUSE

01.	Provision of Community-Based
Alcohol and Drug Abuse Services,
Tuberculosis Services, and Services
provided by the Alcohol, Drug Abuse
Treatment Centers	$ 10,935,939

02.	Continuation and Expansion of
Services for Pregnant Women and
Women with Dependent Children	5,057,281

03.	Continuation and Expansion of
Services to IV Drug Abusers and others
at risk for HIV diseases	4,560,670

04.	Provision of services in accordance with
the Mental Health Study Commission's
Child and Adolescent Alcohol and other
Drug Abuse Plan	4,816,501

05.	Administration	1,749,371

TOTAL BLOCK GRANT FOR PREVENTION
AND TREATMENT OF SUBSTANCE ABUSE	$ 27,119,762

CHILD CARE AND DEVELOPMENT BLOCK GRANT

01.	Child Day Care Services	$ 16,544,305

02.	Administrative Expenses and Quality
and Availability Initiatives	1,832,456

03.	Before and After School Child Care Programs
and Early Childhood Development Programs	4,686,840

04.	Quality Improvement Activities	1,511,106

TOTAL CHILD CARE AND DEVELOPMENT
BLOCK GRANT	$ 24,574,707

(b)	Decreases in Federal Fund Availability
If federal funds are reduced below the amounts specified above after the effective date of this act, then every program, in each of the federal block grants listed above, shall be reduced by the same percentage as the reduction in federal funds.
(c)	Increases in Federal Fund Availability
Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended by the Department of Human Resources, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.  All these budgeted increases shall be reported to the Joint Legislative Commission on Governmental Operations and to the Director of the Fiscal Research Division.
This subsection shall not apply to Job Training Partnership Act funds.
(d)	If funds appropriated through the Child Care and Development Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to other programs, in accordance with the federal requirements of the grant, in order to use the federal funds fully.

Requested by:  Senator Martin of Pitt
NER BLOCK GRANT PROVISIONS
Sec. 7.  (a)	Appropriations from federal block grant funds are made for the fiscal year ending June 30, 1995, according to the following schedule:

TOTAL JOB TRAINING PARTNERSHIP ACT	$ 53,841,243

COMMUNITY DEVELOPMENT BLOCK GRANT

01.	State Administration	$  1,097,380

02.	Urgent Needs and Contingency	   2,413,646

03.	Housing Development	   -0-

04.	Economic Development	   9,654,586

05.	Community Revitalization	  30,404,698

06.	State Technical Assistance	     498,690

07.	Entrepreneurial Empowerment	4,800,000

08.	Microenterprise	1,000,000

TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT	$ 49,869,000

MATERNAL AND CHILD HEALTH SERVICES

01.	Healthy Mother/Healthy Children
	Block Grants to Local Health
	Departments	$ 11,600,877

02.	High Risk Maternity Clinic Services,
	Perinatal Education, and Consultation
	to Local Health Departments
	and Other Health Care Providers	   1,565,313

03.	Services to Children with Disabilities	   5,065,331

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

TOTAL MATERNAL AND CHILD
HEALTH SERVICES	$ 18,352,051

PREVENTIVE HEALTH BLOCK GRANT

01.	Emergency Medical Services	$     452,375

02.	Basic Public Health Services	      180,753

03.	Hypertension Programs	      773,203

04.	Statewide Health Promotion Programs	    2,985,265

05.	Fluoridation of Water Supplies	      228,404

06.	Rape Prevention and Rape
	Crisis Programs	      183,632

07.	AIDS/HIV Education, Counseling,
	and Testing	       81,001

08.	Office of Minority Health and
	Minority Health Council	      190,000

TOTAL PREVENTIVE HEALTH BLOCK GRANT	$   5,074,633

(b)	Decreases in Federal Fund Availability
If federal funds are reduced below the amounts specified above after the effective date of this act, then every program, in each of the federal block grants listed above, shall be reduced by the same percentage as the reduction in federal funds.
(c)	Increases in Federal Fund Availability
Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended as follows:
(1)	For the Community Development Block Grant – each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
(2)	For the Maternal and Child Health Services Block Grant – thirty percent (30%) of these additional funds shall be allocated to services for children with special health care needs and seventy percent (70%) shall be allocated to local health departments to assist in the reduction of infant mortality.
(3)	For the Preventive Health Block Grants – these additional funds may be budgeted by the appropriate department, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.  All these budgeted increases shall be reported to the Joint Legislative Commission on Governmental Operations and to the Director of the Fiscal Research Division.
(d)	Education Setaside of JTPA Funds
The Department of Commerce shall certify to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office when Job Training Partnership Act funds have been distributed to each agency, the total amount distributed to each agency, and the total amount of eight percent (8%) Education Setaside funds received.
(e)  Limitations on Community Development Block Grant Funds
Of the funds appropriated in this section for the Community Development Block Grant, not more than one million ninety-seven thousand three hundred eighty dollars ($1,097,380) may be used for State administration; up to two million four hundred thirteen thousand six hundred forty-six dollars ($2,413,646) may be used for Urgent Needs and Contingency; up to nine million six hundred fifty-four thousand five hundred eighty-six dollars ($9,654,586) may be used for Economic Development; not less than thirty million four hundred four thousand six hundred ninety-eight dollars ($30,404,698) shall be used for Community Revitalization; up to four hundred ninety-eight thousand six hundred ninety dollars ($498,690) may be used for State Technical Assistance; up to four million eight hundred thousand dollars ($4,800,000) may be used for Entrepreneurial Empowerment projects; and up to one million dollars ($1,000,000) may be used for Microenterprise projects.  Housing Development projects will be funded in 1994 from available Program Income.  If federal block grant funds are reduced or increased by the United States Congress after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (b) or (c) of this section, as applicable.

PART 5.  GENERAL PROVISIONS

Requested by: Senator Lee
HIGHWAY FUND AVAILABILITY INCREASE
Sec. 8. Section 18 of Chapter 321 of the 1993 Session Laws, as amended by Section 7 of Chapter 561 of the 1993 Session Laws, reads as rewritten:
"Sec. 18.  The Highway Fund appropriations availability used in developing the 1993-95 Highway Fund budget is shown below:
	($Million)	($Million)
	1993-94	1994-95
Beginning Credit Balance	$	21.03	   	40.5

Estimated Revenues:	 944.6	$	979.3
Transfer from Equipment Fund	10.0	-
Transfer to Highway Trust Fund	  -	(9.6)

Total Highway Fund Availability	$	975.63	$	1,010.2."

Requested by: Senators Daniel, Plyler  
CLARIFY "UNRESERVED CREDIT BALANCE"
Sec. 10.  (a)	G.S. 143-15.2 reads as rewritten:
"§ 143-15.2.  Use of General Fund credit balance.
The State Controller shall reserve up to one-fourth of any unreserved credit balance, as determined on a cash basis, remaining in the General Fund at the end of each fiscal year to the Savings Reserve Account as provided in G.S. 143-15.3, unless that would result in the Savings Reserve Account having funds in excess of five percent (5%) of the amount appropriated the preceding year for the General Fund operating budget, including local government tax-sharing funds; in that case, only funds sufficient to reach the five percent (5%) level shall be reserved.  The State Controller shall also reserve the lesser of (i) one-fourth of any unreserved credit balance, as determined on a cash basis, remaining in the General Fund and (ii) one and one-half percent (1.5%) of the replacement value of all State buildings supported from the General Fund, at the end of each fiscal year to the Repairs and Renovations Reserve Account as provided in G.S. 143-15.3A.  The General Assembly may appropriate that part of the anticipated General Fund credit balance not expected to be reserved to the Savings Reserve Account or the Repairs and Renovations Reserve Account only for capital improvements or other one-time expenditures. As used in this section, the term 'unreserved credit balance' means the credit balance amount, as determined on a cash basis, before funds are reserved by the Controller to the Savings Reserve Account or the Repairs and Renovations Reserve Account pursuant to G.S. 143-15.3 and G.S. 143-15.3A."
(b)	G.S. 143-15.3(a) reads as rewritten:
"(a)	There is established a Savings Reserve Account as a restricted reserve in the General Fund.  The State Controller shall reserve to the Savings Reserve Account one-fourth of any unreserved credit balance remaining in the General Fund at the end of each fiscal year until the account contains funds equal to five percent (5%) of the amount appropriated the preceding year for the General Fund operating budget, including local government tax-sharing funds.  If the balance in the Savings Reserve Account falls below this level during a fiscal year, the State Controller shall reserve to the Savings Reserve Account for the following fiscal years up to one-fourth of any unreserved credit balance remaining in the General Fund at the end of each fiscal year until the account again equals five percent (5%) of the amount appropriated the preceding year for the General Fund operating budget, including local government tax-sharing funds.  As used in this section, the term 'unreserved credit balance' means the credit balance amount, as determined on a cash basis, before funds are reserved by the Controller to the Savings Reserve Account or the Repairs and Renovations Reserve Account pursuant to this section and G.S. 143-15.3A."
(c)	G.S. 143-15.3A(a) reads as rewritten:
"(a)	There is established a Repairs and Renovations Reserve Account as a restricted reserve in the General Fund.  The State Controller shall reserve to the Repairs and Renovations Reserve Account one-fourth of any unreserved credit balance remaining in the General Fund at the end of each fiscal year.  As used in this section, the term 'unreserved credit balance' means the credit balance amount, as determined on a cash basis, before funds are reserved by the Controller to the Savings Reserve Account or the Repairs and Renovations Reserve Account pursuant to this section and G.S. 143-15.3."

PART 6.  SALARIES AND BENEFITS

Requested by: Senators Daniel, Plyler
APPROPRIATIONS
Sec. 11.  (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 forty-three million eight hundred seventy-one thousand five hundred sixty-six dollars ($143,871,566) 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 community college employees, consistent for those employees subject to G.S. 126-7 with the Comprehensive Compensation System enacted in Chapter 388 of the 1993 Session Laws and codified as G.S. 126-7.
(b)	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 million one hundred seven thousand seven hundred seventy-four dollars ($130,107,774) for the 1994-95 fiscal year shall be used to provide permanent salary increases and a one percent (1%) compensation bonus for public school employees.
(c)	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 for those employees subject to G.S. 126-7 with the Comprehensive Compensation System enacted in Chapter 388 of the 1993 Session Laws and codified as G.S. 126-7.
(d)	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 ninety-four dollars ($13,229,194) for the 1994-95 fiscal year shall be allocated for employees in locally operated State-funded programs as provided in this act.

Requested by: Senators Daniel, Plyler
GOVERNOR'S SALARY INCREASE
Sec. 11.1.  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."

Requested by: Senators Daniel, Plyler  
COUNCIL OF STATE/SALARY INCREASE
Sec. 11.2.  Section 49 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 49.  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."

Requested by: Senators Daniel, Plyler  
NONELECTED DEPARTMENT HEAD/SALARY INCREASES
Sec. 11.3. Section 50 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 50.  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."

Requested by: Senators Daniel, Plyler  
CERTAIN EXECUTIVE BRANCH OFFICIALS/SALARY INCREASES
Sec. 11.4. (a) Section 51(a) of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(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
Chairman of the Utilities
Commission	81,381
Commissioner of the Utilities
Commission	80,381
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) G.S. 62-10(h) reads as rewritten:
"(h)	The salary of each commissioner and that of the commissioner designated as chairman shall be set by the General Assembly in the Current Operations Appropriations Act.  In lieu of merit and other increment raises paid to regular State employees, each commissioner, including the commissioner designated as chairman, shall receive as longevity pay an amount equal to four and eight-tenths percent (4.8%) of the annual salary set forth in the Current Operations Appropriations Act payable monthly after five years of service, and nine and six-tenths percent (9.6%) after 10 years of service. 'Service' means service as a member of the Utilities Commission."

Requested by: Senators Daniel, Plyler  
LEGISLATORS/SALARY AND EXPENSES INCREASE
Sec. 11.5.  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 $37,787, payable monthly, and an expense allowance of $1,400 per month.  The President Pro Tempore of the Senate shall be paid an annual salary of $37,787 payable monthly, and an expense allowance of $1,400 per month.  The Speaker Pro Tempore of the House shall be paid an annual salary of $21,532 payable monthly, and an expense allowance of $828.00 per month.  The Deputy President Pro Tempore of the Senate shall be paid an annual salary of $21,532 payable monthly, and an expense allowance of $828.00 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 $16,885 payable monthly, and an expense allowance of $659.00 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 $13,818 payable monthly, and an expense allowance of $553.00 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."

Requested by: Senators Daniel, Plyler  
GENERAL ASSEMBLY PRINCIPAL CLERKS/SALARY INCREASES
Sec. 11.6.  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 $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."

Requested by: Senators Daniel, Plyler  
SERGEANT-AT-ARMS AND READING CLERKS/SALARY INCREASES
Sec. 11.7.  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 $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."

Requested by: Senators Daniel, Plyler  
LEGISLATIVE EMPLOYEES/SALARY INCREASES
Sec. 11.8.  The Legislative Administrative Officer shall increase the salaries of nonelected employees of the General Assembly in effect for fiscal year 1993-94 by four percent (4%).  Nothing in this act limits any of the provisions of G.S. 120-32.

Requested by: Senators Daniel, Plyler  
JUDICIAL BRANCH OFFICIALS/SALARY INCREASE
Sec. 11.9. (a)	Section 56(a) of Chapter 321 of the Session Laws of 1993 reads as rewritten:
"(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 for 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 $48,608, and the minimum salary of any assistant district attorney or assistant public defender is at least $24,816 effective July 1, 1994."
(a1)  Section 56(a) of Chapter 321 of the Session Laws of 1993, as rewritten by subsection (a) of this section, reads as rewritten:
"(a)	The annual salaries, payable monthly, for specified judicial branch officials beginning January 1, 1995, through the end of fiscal year 1994-95 are:
Judicial Branch Officials	Annual Salary
Chief Justice, Supreme Court	$	97,600
Associate Justice, Supreme Court		96,000
Chief Judge, Court of Appeals		93,600
Judge, Court of Appeals		92,000
Judge, Senior Regular Resident
Superior Court		89,600
Judge, Superior Court		88,000
Chief Judge, District Court		80,000
Judge, District Court		77,500
District Attorney		82,700
Assistant District Attorney - an
average of  	48,608
Administrative Officer of the Courts		89,600
Assistant Administrative Officer
of the Courts		77,500
Public Defender		82,700
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 for 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  $48,608, and the minimum salary of any assistant district attorney or assistant public defender is at least $24,816 effective July 1, 1994."
(b)	The salaries in effect for fiscal year 1993-94 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 1993-94 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%).

Requested by: Senators Daniel, Plyler  
CLERK OF SUPERIOR COURT SALARY DETERMINATION/INCREASE
Sec. 11.10.  (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  		56,806
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.

Requested by: Senator Odom 
CLERK OF SUPERIOR COURT SALARY DETERMINATION/INCREASE
Sec. 11.10A.  Effective January 1, 1995, G.S. 7A-101(a), as rewritten by Section 11.10 of this act, 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    	$	53,230
100,000 to 149,999  		60,083
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."

Requested by: Senators Daniel, Plyler  
ASSISTANT AND DEPUTY CLERKS OF COURT/SALARY INCREASE
Sec. 11.11.  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. 11.12.  G.S. 7A-102(c1) reads as rewritten:
"(c1)	A full-time assistant clerk or a full-time deputy clerk, and up to one full-time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks and Head Bookkeeper	Annual Salary
Minimum	$	21,126
Maximum		37,406

Deputy Clerks	Annual Salary
Minimum	$	16,891
Maximum		28,813."

Requested by:   Senators Odom, Ballance, Gulley, Blackmon, and                 Marshall
RAISE EDUCATIONAL QUALIFICATIONS OF MAGISTRATES/MODIFY MAGISTRATES' PAY PLAN
Sec. 11.13. (a)	G.S. 7A-171.2 reads as rewritten:
"§ 7A-171.2.  Qualifications for nomination or renomination.
(a)	In order to be eligible for nomination or for renomination as a magistrate an individual shall be a resident of the county for which he is appointed.
(b)	To be eligible for nomination as a magistrate, an individual shall have a four-year degree from an accredited senior institution of higher education or shall have a two-year associate degree and four years of work experience in a related field, including teaching, social services, law enforcement, arbitration or mediation, the court system, or counseling.  The Administrative Officer of the Courts may determine whether the work experience is sufficiently related to the duties of the office of magistrate for the purposes of this subsection.  In determining whether an individual's work experience is in a related field, the Administrative Officer of the Courts shall consider the requisite knowledge, skills, and abilities for the office of magistrate.
The eligibility requirements prescribed by this subsection do not apply to individuals holding the office of magistrate on June 30, 1994, and do not apply to individuals who have been nominated by June 30, 1994, but who have not been appointed or taken the oath of office by that date.
(c)	In order to be eligible for renomination as a magistrate an individual shall have successfully completed the course of basic training for magistrates prescribed by G.S. 7A-177.
(d)	Notwithstanding any other provision of this subsection, an individual who holds the office of magistrate on July 1, 1977, shall not be required to have successfully completed the course of basic training for magistrates prescribed by G.S. 7A-177 in order to be eligible for renomination as a magistrate."
(b)	G.S. 7A-171.1 reads as rewritten:
"§ 7A-171.1.  Duty hours, salary, and travel expenses within county.
	(a)	The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate.
(1)	A full-time magistrate shall be paid the annual salary indicated in the table set out in this subdivision.  A full-time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office.  The Administrative Officer of the Courts shall designate whether a magistrate is full-time.  Initial appointment shall be at the entry rate.  A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases  to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.
            Table of Salaries of Full-Time Magistrates
									Annual Salary
Entry Rate	$22,958
Step 1	25,262
Step 2	27,770
Step 3	30,506
Step 4	33,503
Step 5	36,797
Step 6	40,420.
			(2)	A part-time magistrate is a magistrate who is assigned to work an average of less than 40 hours of work a week during the term, except that no magistrate shall be assigned an average of less than 10 hours of work a week during the term.  A part-time magistrate is included, in accordance with G.S. 7A-170, under the provisions of G.S. 135-1(10) and G.S. 135-40.2(a).  The Administrative Officer of the Courts designates whether a magistrate is a part-time magistrate.  A part-time magistrate shall receive an annual salary based on the following formula: The average number of hours a week that a part-time magistrate is assigned work during the term shall be multiplied by the annual salary payable to a full-time magistrate who has the same number of years of service prior to the beginning of that term as does the part-time magistrate and the product of that multiplication shall be divided by the number 40. The quotient shall be the annual salary payable to that part-time magistrate.
					(3)	
		Notwithstanding any other provision of this subsection, an individual who, when initially appointed as a full-time magistrate, is licensed to practice law in North Carolina, shall receive the annual salary provided in the Table in subdivision (1) of this subsection for Step 4.  This magistrate's salary shall increase to the next step every four years on the anniversary of the date the magistrate was originally appointed.  An individual who, when initially appointed as a part-time magistrate, is licensed to practice law in North Carolina, shall be paid an annual salary based on that for Step 4 and determined according to the formula in subdivision (2) of this subsection.  This magistrate's salary shall increase to the next step every four years on the anniversary of the date the magistrate was originally appointed.  The salary of a full-time magistrate who acquires a license to practice law in North Carolina while holding the office of magistrate and who at the time of acquiring the license is receiving a salary at a level lower than Step 4 shall be adjusted to Step 4 and, thereafter, shall advance in accordance with the Table's schedule.  The salary of a part-time magistrate who acquires a license to practice law in North Carolina while holding the office of magistrate and who at the time of acquiring the license is receiving an annual salary as determined  by subdivision (2) of this subsection based on a salary level lower than Step 4 shall be adjusted to a salary based on Step 4 in the Table and, thereafter, shall advance in accordance with the provision in subdivision (2) of this subsection.
	(a1)	Notwithstanding subsection (a) of this section, the following salary provisions apply to individuals who were serving as magistrates on June 30, 1994:
(1)	The salaries of magistrates who on June 30, 1994, were paid at a salary level of less than five  years of service under the table in effect that date shall be as follows:
Less than 1 year of service	$ 18,095
1 or more but less than 3 years of service	 19,025
3 or more but less than 5 years of service	 20,896.
	Upon completion of four years of service, those magistrates shall receive the salary set as the Entry Rate in the table in subsection (a).
(2)	The salaries of magistrates who on June 30, 1994, were paid at a salary level of five or more years of service shall be based on the rates set out in subsection (a) as follows:
Salary Level on
Salary Level on June 30, 1994	           July 1, 1994
5 or more but less than 7 years of service	Entry Rate
7 or more but less than 9 years of service	Step 1
9 or more but less than 11 years of service	Step 2
11 or more years of service	Step 3.
		Thereafter, their salaries shall be set in accordance with the provisions in subsection (a).
(3)	The salaries of magistrates who are licensed to practice law in North Carolina shall be adjusted to the annual salary provided in the table in subsection (a) as Step 4, and, thereafter, their salaries shall be set in accordance with the provisions in subsection (a).
(4)	The salaries of 'part-time magistrates' shall be set under the formula set out in subdivision (2) of subsection (a) but according to the rates set out in this subsection.
	(a2)  The Administrative Officer of the Courts shall provide magistrates with longevity pay at the same rates as are provided by the State to its employees subject to the State Personnel Act.
(b)	Notwithstanding G.S. 138-6, a magistrate may not be reimbursed by the State for travel expenses incurred on official business within the county in which the magistrate resides."
(c)	Subsection (a1) of G.S. 7A-171.1, as added by subsection (b) of this section, expires June 30, 1998.
¨
AUTHORIZED TRANSFERS/SALARY ADJUSTMENT FUNDS
Sec. 11.14.  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.

COMMUNITY COLLEGES PERSONNEL/SALARY INCREASES
Sec. 11.15.  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.  The State Board of Community Colleges shall establish guidelines for providing their salary increases to community college institutional personnel.  Salary funds shall be used to provide an average annual salary increase of four percent (4%) to all full-time employees and part-time employees on a pro rata basis.

Requested by: Senators Daniel, Plyler
UNIVERSITY OF NORTH CAROLINA SYSTEM - EPA SALARY INCREASES
Sec. 11.17.  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).  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.

Requested by: Senators Daniel, Plyler
UNIVERSITY OF NORTH CAROLINA COMPETITIVE FACULTY SALARY LEVELS
Sec. 11.18.  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 percent (1.5%) of salary funds for those teaching faculty 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 Section 3 of Chapter 321 of the 1993 Session Laws (also see Section 101.1 of that Chapter).

Requested by: Senators Daniel, Plyler
MOST STATE EMPLOYEES/SALARY INCREASES/1994-95
Sec. 11.19.  (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, who are covered by G.S. 126-7, 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 System enacted in Chapter 388 of the 1993 Session Laws.  Employees covered by G.S. 126-7 are eligible as provided by that law for a career growth recognition award of two percent (2%), a cost-of-living adjustment of two percent (2%), and a performance bonus of not less than one percent (1%), except that employees covered by G.S. 20-187.3(a) are not eligible for the performance bonus in fiscal year 1994-95.  For fiscal year 1994-95, the performance bonus may not be paid prior to December 1994.
(a1) No person receiving the compensation bonus under Section 11.20 of this act may receive a performance bonus under G.S. 126-7 during the 1994-95 fiscal year.
(b)	Except as otherwise provided in this act, salaries in effect June 30, 1994, for:
(1)	Permanent full-time State employees not covered by G.S. 126-7, whose salaries were not increased by any other provision of this part other than Section 11.20, or who were not eligible for increase under Sections 11.15, 11.17, or 11.18 of this act,
(2)	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 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).  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 will be moved to the new top of their salary range.

Requested by:   Senators Daniel, Plyler
ANNUAL PERFORMANCE APPRAISALS FOR SPA SALARY INCREASES
Sec. 11.19A.  (a)	For the purpose of establishing employee eligibility for the career growth recognition award and cost-of-living adjustment, the State Personnel Director may assign a final annual performance appraisal level to current State employees subject to G.S. 126-7 who were employed on or before September 1, 1993, and have been employed continuously by the State since that date, but who did not receive a final annual performance appraisal within the preceding 12-month period.
(b) The State agency, department, or institution employing an employee who receives a final annual performance appraisal level pursuant to subsection (a) of this section shall notify the employee of the performance appraisal level assigned by the State Personnel Director.

Requested by: Senators Daniel, Plyler 
COMPENSATION BONUS
Sec. 11.20. (a)	Any person:
(1)	Whose salary is set by or under this Part;
(2)	Who is not subject to G.S. 126-7;
(3)	Who was, in the first half of the 1994-95 fiscal year:
a.	A permanent officer or permanent employee whose salary is set by or under this Part; or
b.	A public school bus driver, covered by Section 11.24 of this act; and
(4)	Who was such an officer or employee for the entire first half of the fiscal year, or, if the position was for a contract which provides for a term of four months or more during the period July 1, 1994, through December 31, 1994, held the position for the entire term of the contract
shall receive in December of 1994 a compensation bonus of one percent (1%) of the annual salary for that position.
(b)	The annual salary on which the percentage bonus is based is the annual salary in effect during the pay period in which the bonus is paid.
(c)	The provisions of this section do not apply to persons whose salaries are set by G.S. 120-3.  The provisions of this section do not apply to employees covered by G.S. 20-187.3(a) unless the employee was moved to the new top of the salary range because the employee was at the top of the salary range, and in such case subdivision (a)(2) of this section does not apply to such person.
(d)	The Director of the Budget shall transfer from the Reserve for Compensation Bonus provided by this act sufficient funds to implement this section.

Requested by: Senators Daniel, Plyler
SALARY INCREASE FOR STATE-FUNDED LOCAL PROGRAMS
Sec. 11.21.  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 Section 11.20 of this act.

Requested by:   Senator Ward
TEACHER SALARY SCHEDULES
Sec. 11.22.  (a)	The Director of the Budget may transfer from the Reserve for Salary Increases for the 1994-95 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 and funds for annual longevity payments as provided in Section 127 of Chapter 321 of the 1993 Session Laws, commencing July 1, 1994, 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.  The longevity payment shall be paid in a lump sum once a year.
(b)(1)	Beginning July 1, 1994, the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "A"teachers.  The schedule contains 30 steps with each step corresponding to one year of teaching experience.
	Years of	1994-95
	Experience	 Salary
00	2,042
01	2,083
02	2,125
03	2,168
04	2,211
05	2,255
06	2,300
07	2,346
08	2,393
09	2,441
10	2,490
11	2,540
12	2,591
13	2,643
14	2,696
15	2,750
16	2,805
17	2,861
18	2,918
19	2,976
20	3,036
21	3,097
22	3,159
23	3,222
24	3,286
25	3,352
26	3,419
27	3,487
28	3,557
29+	3,628
(2)	Beginning July 1, 1994, the following monthly salary schedule shall apply to certified personnel of the public schools who are classified as "G"teachers.  The schedule contains 30 steps with each step corresponding to one year of teaching experience.
	Years of	1994-95
	Experience	 Salary
00	2,170
01	2,213
02	2,257
03	2,302
04	2,348
05	2,395
06	2,443
07	2,492
08	2,542
09	2,593
10	2,645
11	2,698
12	2,752
13	2,807
14	2,863
15	2,920
16	2,978
17	3,038
18	3,099
19	3,161
20	3,224
21	3,288
22	3,354
23	3,421
24	3,489
25	3,559
26	3,630
27	3,703
28	3,777
29+	3,853
(3)	Certified public school teachers with certification based on academic preparation at the six-year degree level and at the doctoral degree level shall receive a salary supplement as provided in Section 127 of Chapter 321 of the 1993 Session Laws.
(c)	The first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "G"teachers.  Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience.  Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.

Requested by:   Senator Ward
SCHOOL-BASED ADMINISTRATOR SALARIES
Sec. 11.23.  (a)	Funds appropriated to the Reserve for Salary Increases shall be used to complete the implementation of a new salary schedule for school-based administrators as provided in this act.  These funds shall be used for State-paid employees only.
(b)	The salary schedule for school-based administrators shall apply only to principals and assistant principals.  The salary schedule for the 1994-95 fiscal year is as follows:

	Asst.
Step 	Prin.	Prin.I	Prin.II	Prin.III	Prin.IV	Prin.V	Prin.VI	Prin.VII

0	  –  	  –  	  –  	  –  	  –  	  –  	  –  	  –  
1	  –  	  –  	  –  	  –  	  –  	  –  	  –  	  –  
2	  –  	  –  	  –  	  –  	  –  	  –  	  –  	  –  
3	  –  	  –  	  –  	  –  	  –  	  –  	  –  	  –  
4	$2,418	  –  	  –  	  –  	  –  	  –  	  –  	  –  
5	2,466	  –  	  –  	  –  	  –  	  –  	  –  	  –  
6	2,515	  –  	  –  	  –  	  –  	  –  	  –  	  –  
7	2,565	  –  	  –  	  –  	  –  	  –  	  –  	  –  
8	2,616	$2,616	  –  	  –  	  –  	  –  	  –  	  –  
9	2,668	2,668	  –  	  –  	  –  	  –  	  –  	  –  
10	2,721	2,721	$2,775	  –  	  –  	  –  	  –  	  –  
11	2,775	2,775	2,831	  –  	  –  	  –  	  –  	  –  
12	2,831	2,831	2,888	$2,946	  –  	  –  	  –  	  –  
13	2,888	2,888	2,946	3,005	$3,065	  –  	  –  	  –  
14	2,946	2,946	3,005	3,065	3,126	$3,189	  –  	  –  
15	3,005	3,005	3,065	3,126	3,189	3,253	  –  	  –  
16	3,065	3,065	3,126	3,189	3,253	3,318	$3,384	  –  
17	3,126	3,126	3,189	3,253	3,318	3,384	3,452	$3,521
18	3,189	3,189	3,253	3,318	3,384	3,452	3,521	3,591
19	3,253	3,253	3,318	3,384	3,452	3,521	3,591	3,663
20	3,318	3,318	3,384	3,452	3,521	3,591	3,663	3,736
21	3,384	3,384	3,452	3,521	3,591	3,663	3,736	3,811
22	3,452	3,452	3,521	3,591	3,663	3,736	3,811	3,887
23	3,521	3,521	3,591	3,663	3,736	3,811	3,887	3,965
24	3,591	3,591	3,663	3,736	3,811	3,887	3,965	4,044
25	3,663	3,663	3,736	3,811	3,887	3,965	4,044	4,125
26	3,736	3,736	3,811	3,887	3,965	4,044	4,125	4,208
27	3,811	3,811	3,887	3,965	4,044	4,125	4,208	4,292
28	3,887	3,887	3,965	4,044	4,125	4,208	4,292	4,378
29	3,965	3,965	4,044	4,125	4,208	4,292	4,378	4,466
30	4,044	4,044	4,125	4,208	4,292	4,378	4,466	4,555
31	4,125	4,125	4,208	4,292	4,378	4,466	4,555	4,646
32 	  –  	4,208	4,292	4,378	4,466	4,555	4,646	4,739
33 	  –  	  – 	4,378	4,466	4,555	4,646	4,739	4,834
34 	  –  	  – 	4,466	4,555	4,646	4,739	4,834	4,931
35 	  –  	  – 	  – 	4,646	4,739	4,834	4,931	5,030
36 	  –  	  – 	  – 	4,739	4,834	4,931	5,030	5,131
37 	  –  	  – 	  – 	  – 	4,931	5,030	5,131	5,234
38 	  –  	  – 	  – 	  – 	  – 	5,131	5,234	5,339
39 	  –  	  – 	  – 	  – 	  – 	  – 	5,339	5,446
40 	  –  	  – 	  – 	  – 	  – 	  – 	5,446	5,555
41	 –  	  – 	  – 	  – 	 – 	  – 	  – 	5,666.
(c)	The appropriate classification for placement of principals and assistant principals on the salary schedule shall be determined in accordance with the following schedule:
Number of Teachers
Classification	Supervised
Assistant Principal
Principal I	Less than 11 Teachers
Principal II	11-21 Teachers
Principal III	22-32 Teachers
Principal IV	33-43 Teachers
Principal V	44-54 Teachers
Principal VI	55-65 Teachers
Principal VII	More than 65 Teachers.
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non-State funds or the principal or teacher assistants.
(d)	An assistant principal shall be placed on the step on the salary schedule that reflects total years of experience as a certificated employee of the public schools.
A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal.
(e) Principals and assistant principals with certification based on academic preparation at the six-year degree level and at the doctoral degree level shall be paid a salary increment as provided in Section 132 of Chapter 321 of the 1993 Session Laws.
(f)  There shall be no State requirement that superintendents in each local school unit shall receive in State-paid salary at least one percent (1%) more than the highest paid principal receives in State salary in that school unit:  Provided, however, the additional State-paid salary a superintendent who was employed by a local school administrative unit for the 1992-93 fiscal year received because of that requirement shall not be reduced because of this subsection for subsequent fiscal years that the superintendent is employed by that local school administrative unit so long as the superintendent is entitled to at least that amount of additional State-paid salary under the rules in effect for the 1992-93 fiscal year.
(g)  Longevity pay for principals and assistant principals shall be as provided for State employees.
(h)	(1)	If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State-allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
(2)	If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State-allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
	   This subdivision applies to all transfers on or after the ratification date of this act, except transfers in school systems that have been created, or will be created, by merging two or more school systems.  Transfers in these merged systems are exempt from the provisions of this subdivision for one calendar year following the date of the merger.

Requested by: Senators Daniel, Plyler
CERTAIN PUBLIC SCHOOL EMPLOYEES' SALARY INCREASE
Sec. 11.24. (a)	Superintendents, Assistant Superintendents, Associate Superintendents, Supervisors, Directors, Coordinators, Evaluators, and Program Administrators.  – The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1994-95 funds necessary to provide a salary increase of four percent (4%), including funds for the employer's retirement and Social Security contributions, commencing July 1, 1994, for all superintendents, assistant superintendents, associate superintendents, supervisors, directors, coordinators, evaluators, and program administrators whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than for the salary increase and necessary employer contributions provided by this subsection.
(b)	Noncertified Employees. – The Director of the Budget may transfer from the Reserve for Salary Increases created in this act for fiscal year 1994-95 funds necessary to provide a salary increase of four percent (4%), including funds for the employer's retirement and Social Security contributions, commencing July 1, 1994, for all noncertified public school employees, except school bus drivers, whose salaries are supported from the State's General Fund.  These funds may not be used for any purpose other than for the salary increases and necessary employer contributions provided by this subsection.
(c) The fiscal year 1993-94 pay rates adopted by local boards of education for school bus drivers shall be increased by at least four percent (4%) on and after July 1, 1994, to the extent that such rates of pay are supported by the allocation of State funds from the State Board of Education.  Local boards of education shall increase the rates of pay for all school bus drivers who were employed during fiscal year 1993-94 and who continue their employment for fiscal year 1994-95 by at least four percent (4%) on and after July 1, 1994.  The Director of the Budget may transfer from the salary increase reserve fund created in this act for fiscal year 1994-95 funds necessary to provide the salary increases for school bus drivers whose salaries are supported from the State's General Fund in accordance with the provisions of this subsection.

Requested by: Senators Daniel, Plyler
ALL STATE-SUPPORTED PERSONNEL/SALARY INCREASES
Sec. 11.25.  (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)	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.
(e)  Nothing in this act authorizes the transfer of funds between the General Fund and the Highway Fund for salary increases.

Requested by: Senators Daniel, Plyler
SALARY-RELATED CONTRIBUTIONS/EMPLOYERS
Sec. 11.26.  (a) 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.
(b)	Effective July 1, 1994, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 1994-95 fiscal year are (i) ten and ninety-six hundredths percent (10.96%) - Teachers and State Employees; (ii) fifteen and ninety-six hundredths percent (15.96%) - State Law Enforcement Officers; (iii) nine percent (9.00%) - University Employees' Optional Retirement Program; (iv) twenty-four and eighty-three hundredths percent (24.83%) - Consolidated Judicial Retirement System; and (v) thirty-nine and seventy-three hundredths percent (39.73%) - Legislative Retirement System.  Each of the foregoing contribution rates includes two percent (2%) for hospital and medical benefits.  The rate for State Law Enforcement Officers includes five percent (5%) for the Supplemental Retirement Income Plan.  The rates for Teachers and State Employees, State Law Enforcement Officers, and for the University Employees' Optional Retirement Program includes forty-two hundredths percent (0.42%) for the Disability Income Plan.
(c)	The maximum annual employer contributions, payable monthly, by the State for each covered employee or retiree for the 1994-95 fiscal year to the Teachers' and State Employees' Comprehensive Major Medical Plan are: (i) Medicare-eligible employees and retirees - one thousand three hundred twenty-one dollars ($1,321); and (ii) Non-Medicare-eligible employees and retirees - one thousand seven hundred thirty-six dollars ($1,736).

Requested by: Senators Daniel, Plyler
RESTORATION OF THE TWELFTH MONTH TEACHER PAYROLL
Sec. 11.27.  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.

Requested by:   Senator Daniel
STATE EMPLOYEE SUBSISTENCE ALLOWANCE
Sec. 11.27A.  G.S. 138-6(a)(3) reads as rewritten:
"(3)	For expenses incurred for subsistence, payment of seventy-one dollars ($71.00) per day when traveling in-state or eighty-three dollars ($83.00) per day when traveling out-of-state.  When travel involves less than a full day (24-hour period), a reasonable prorated amount shall be paid in accordance with regulations and criteria which shall be promulgated and published by the Director of the Budget.  Reimbursement to State employees for lunches eaten while on official business may be made only in the following circumstances:
a.	When an overnight stay is required reimbursement is allowed while an employee is in travel status;
b.	When the cost of the lunch is included as part of a registration fee for a formal congress, conference, assembly, or convocation, by whatever name called.  Such assembly must involve the active participation of persons other than the employees of a single State department, institution, or agency and must be necessary for conducting official State business; or
c.	When the State employee is a member of a State board, commission, committee, or council which operates from funds deposited with the State Treasurer, and the lunch is preplanned as part of the meeting for the entire board, commission, committee, or council."

Requested by: Senators Daniel, Plyler
PER DIEM/MILEAGE CONFORM TO FEDERAL CHANGES
Sec. 11.28.  Effective upon convening of the 1995 Regular Session of the General Assembly, G.S. 120-3.1(a) reads as rewritten:
(a)	In addition to compensation for their services, members of the General Assembly shall be paid the following allowances:
(1)	A weekly travel allowance for each week or fraction thereof that the General Assembly is in regular or extra session.  The amount of the weekly travel allowance shall be calculated for each member by multiplying the actual round-trip mileage from that member's home to the City of Raleigh by the rate per mile which is the business standard mileage rate set by the Internal Revenue Service in Rev. Proc. 93-51, December 27, 1993.
(2)	A travel allowance at the rate which is the business standard mileage rate set by the Internal Revenue Service in Rev. Proc. 93-51, December 27, 1993, whenever the member travels, whether in or out of session, as a representative of the General Assembly or of its committees or commissions, with the approval of the Legislative Services Commission.
(3)	A subsistence allowance for meals and lodging at a daily rate equal to the maximum per diem rate for federal employees traveling to Raleigh, North Carolina, as set out at 58 Federal Register 67959 (December 22, 1993), while the General Assembly is in session and, except as otherwise provided in this subdivision, while the General Assembly is not in session when, with the approval of the Speaker of the House in the case of Representatives or the President Pro Tempore of the Senate in case of Senators, the member is:
a.	Traveling as a representative of the General Assembly or of its committees or commissions, or
b.	Otherwise in the service of the State.
		A member who is authorized to travel, whether in or out of session, within the United States outside North Carolina, may elect to receive, in lieu of the amount provided in the preceding paragraph, a subsistence allowance of twenty-six dollars ($26.00) a day for meals, plus actual expenses for lodging when evidenced by a receipt satisfactory to the Legislative Administrative Officer, the latter not to exceed the maximum per diem rate for federal employees traveling to the same place, as set out at 58 Federal Register 67950-67964 (December 22, 1993) and at 59 Federal Register 23702-23709 (May 6, 1994).
(4)	A member may be reimbursed for registration fees as permitted by the Legislative Services Commission."

Requested by: Senator Harris
INCLUDE EXPENSE ALLOWANCES AS COMPENSATION UNDER THE LEGISLATIVE RETIREMENT SYSTEM
Sec. 11.29.  (a) Effective upon the convening of the 1995 Regular Session of the General Assembly, G.S. 120-4.8(5) reads as rewritten:
"(5)	'Compensation' means salary and expense allowance  paid as a legislator for service in the North Carolina General Assembly, exclusive of travel and per diem."
(b) This section applies to expense allowances paid on or after January 1, 1994.

Requested by: Senator Harris
CHANGE THE METHOD FOR CALCULATING THE REDUCTION FOR EARLY RETIREMENT IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM; TO INCREASE THE RETIREMENT FORMULA WITH AN ADJUSTING INCREASE TO RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM AND OF THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM; AND TO PROVIDE AN INCREASE TO RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM AND THE JUDICIAL RETIREMENT SYSTEM
Sec. 11.30. (a)	G.S. 128-24(5)a reads as rewritten:
"a.	Notwithstanding any other provision of this Chapter, any member who separates from service prior to the attainment of the age of 60 years for any reason other than death or retirement for disability as provided in G.S. 128-27(c), after completing 15 or more years of creditable service, and who leaves his total accumulated contributions in said System shall have the right to retire on a deferred retirement allowance upon attaining the age of 60 years; provided that such member may retire only upon written application to the Board of Trustees setting forth at what time, not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired; and further provided that in the case of a member who so separates from service on or after July 1, 1967, the aforestated requirement of 15 or more years of creditable service shall be reduced to 12 or more years of creditable service; and further provided that in the case of a member who so separates from service on or after July 1, 1971, or whose account is active on July 1, 1971, the aforestated requirement of 12 or more years of creditable service shall be reduced to five or more years of creditable service.  Such deferred retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to a member who is not a law enforcement officer or eligible former law enforcement officer."
(b)	G.S. 128-27 is amended by adding a new subsection to read:
"( a1)	Early Service Retirement Benefits. – Any member may retire and receive a reduced retirement allowance upon written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired:  Provided, that the said member at the time so specified for his retirement shall have attained the age of 50 years and have at least 20 years of creditable service."
(c) G.S. 128-27(b13) reads as rewritten:
	"(b13)  Service Retirement Allowance of Members Retiring on or after July 1, 1992, but before July 1, 1994. – Upon retirement from service in accordance with subsection (a) above, on or after July 1, 1992, but before July 1, 1994, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and seventy hundredths percent (1.70%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 128-27(b8)(2).
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy hundredths percent (1.70%) of his average final compensation, multiplied by the number of years of creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 128-27(b7)(2a), (2b), and (3)."
(d)	G.S. 128-27 is amended by adding a new subsection to read:
"( b14)	Service Retirement Allowance of Members Retiring on or after July 1, 1994. – Upon retirement from service in accordance with subsection (a) or (a1) above, on or after July 1, 1994, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and seventy-one hundredths percent (1.71%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 128-27(b8)(2).
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy-one hundredths percent (1.71%) of his average final compensation, multiplied by the number of years of creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 128-27(b7)(2a), (2b), and (3)."
(e)  G.S. 135-3(8)a reads as rewritten:
"a.	Notwithstanding any other provision of this Chapter, any member who separates from service prior to the attainment of the age of 60 years for any reason other than death or retirement for disability as provided in G.S. 135-5(c), after completing 15 or more years of creditable service, and who leaves his total accumulated contributions in said System shall have the right to retire on a deferred retirement allowance upon attaining the age of 60 years; provided that such member may retire only upon written application to the Board of Trustees setting forth at what time, not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired; and further provided that in the case of a member who so separates from service on or after July 1, 1967, or whose account is active on July 1, 1967, or has not withdrawn his contributions, the aforestated requirement of 15 or more years of creditable service shall be reduced to 12 or more years of creditable service; and further provided that in the case of a member who so separates from service on or after July 1, 1971, or whose account is active on July 1, 1971, the aforestated requirement of 12 or more years of creditable service shall be reduced to five or more years of creditable service.  Such deferred retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to a member who is not a law enforcement officer or an eligible former law enforcement officer.  Notwithstanding the foregoing, any member whose services as a teacher or employee are terminated for any reason other than retirement, who becomes employed by a nonprofit, nonsectarian private school in North Carolina below the college level within one year after such teacher or employee has ceased to be a teacher or employee, may elect to leave his total accumulated contributions in the Teachers' and State Employees' Retirement System during the period he is in the employment of such employer; provided that he files notice thereof in writing with the Board of Trustees of the Retirement System within five years after separation from service as a public school teacher or State employee; such member shall be deemed to have met the requirements of the above provisions of this subdivision upon attainment of age 60 while in such employment provided that he is otherwise vested."
(f) G.S. 135-3(8) is amended by adding a new subdivision to read:
"b3.	Vested deferred retirement allowance of members retiring on or after July 1, 1994. – In lieu of the benefits provided in paragraphs a. and b. of this subdivision, any member who separates from service prior to attainment of age 60 years, after completing 20 or more years of creditable service, and who leaves his total accumulated contributions in said System, may elect to retire on a deferred retirement allowance upon attaining the age of 50 years or any time thereafter; provided that such member may so retire only upon written application to the Board of Trustees setting forth at what time, not less than one day nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired.  Such deferred retirement allowance shall be computed in accordance with the service retirement provisions of this Article pertaining to a member who is not a law enforcement officer or an eligible former law enforcement officer."
(g)  G.S. 135-5 is amended by adding a new subsection to read:
"( a1)	Early Service Retirement Benefits. – Any member may retire and receive a reduced retirement allowance upon written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 90 days subsequent to the execution of and filing therof, he desires to be retired: Provided, that the said member at the time so specified for his retirement shall have attained the age of 50 years and have at least 20 years of creditable service."
(h)  G.S. 135-5(b14) reads as rewritten:
"(b14)	Service Retirement Allowance of Members Retiring on or after July 1, 1993, but before July 1, 1994. – Upon retirement from service in accordance with subsection (a) above, on or after July 1, 1993, but before July 1, 1994, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and seventy-one hundredths percent (1.71%) of his average final compensation, multiplied by the number of years of his creditable service.
b.  	If the member's service retirement date occurs after his 50th and before his 55th birthday with 15 or more years of creditable service as a law enforcement officer and prior to the completion of 30 years of creditable service, the allowance shall be computed as in G.S. 135-5(b14)(1)a., but shall be reduced by one-third of one percent (1/3 of 1%) thereof for each month by which the retirement date precedes the first day of the month coincident with or next following his 55th birthday.
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy-one hundredths percent (1.71%) of his average final compensation, multiplied by the number of years of creditable service.
b.	If the member's service retirement date occurs after his 60th birthday and before his 65th birthday and prior to the completion of 25 years or more of creditable service, the retirement allowance shall be computed as in G.S. 135-5(b14)(2)a. but shall be reduced by one-quarter of one percent (1/4 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following his 65th birthday.
c.	If the member's service retirement date occurs before his 60th birthday and prior to the completion of 30 or more years of creditable service, the service retirement allowance shall be the actuarial equivalent of the allowance payable at the age of 60 years as computed in G.S. 135(b14)(2)b [G.S. 135-5(b14)(2)b.].
d.	Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1963, shall receive not less than the benefit provided by G.S. 135-5(b)."
(i) G.S. 135-5 is amended by adding a new subsection to read:
"( b15)	Service Retirement Allowance of Members Retiring on or after July 1, 1994. – Upon retirement from service in accordance with subsection (a) or (a1) above, on or after July 1, 1994, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and seventy-three hundredths percent (1.73%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	If the member's service retirement date occurs on or after his 50th birthday and before his 55th birthday with 15 or more years of creditable service as a law enforcement officer and prior to the completion of 30 years of creditable service, his retirement allowance shall be equal to the greater of:
1.	The service retirement allowance payable under G.S. 135-5(b15)(1)a. reduced by one-third of one percent (1/3 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 55th birthday; or
2.	The service retirement allowance as computed under G.S. 135-5(b15)(1)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement.
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy-three hundredths percent (1.73%) of his average final compensation, multiplied by the number of years of creditable service.
b.	If the member's service retirement date occurs after his 60th and before his 65th birthday and prior to his completion of 25 years or more of creditable service, his retirement allowance shall be computed as in G.S. 135-5(b15)(2)a. but shall be reduced by one-quarter of one percent (1/4 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following his 65th birthday.
c.	If the member's early service retirement date occurs on or after his 50th birthday and before his 60th birthday and after completion of 20 years of creditable service but prior to the completion of 30 years of creditable service, his early service retirement allowance shall be equal to the greater of:
1.	The service retirement allowance as computed under G.S. 135-5(b15)(2)a. but reduced by the sum of five-twelfths of one percent (5/12 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 60th birthday, plus one-quarter of one percent (1/4 of 1%) thereof for each month by which his 60th birthday precedes the first day of the month coincident with or next following his 65th birthday; or
2.	The service retirement allowance as computed under G.S. 135-5(b15)(2)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement; or
3.	If the member's creditable service commenced prior to July 1, 1994, the service retirement allowance provided by G.S. 135-5(b14)(2)c.
d.	Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1963, shall not receive less than the benefit provided by G.S. 135-5(b)."
(j) G.S. 135-5(m) reads as rewritten:
"(m)	Survivor's Alternate Benefit. – Upon the death of a member in service, the principal beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) above computed by assuming that the member had retired on the first day of the month following the date of his death, provided that the following conditions apply:
	(1)	a.	The member had attained such age and/or creditable service to be eligible to commence retirement with an early or service retirement allowance, or
b.	The member had obtained 20 years of creditable service in which case the retirement allowance shall be computed in accordance with G.S. 135-5(b15)(1)b. or G.S. 135-5(b15)(2)c., notwithstanding the requirement of obtaining age 50.
(2)	The member had designated as the principal beneficiary to receive a return of his accumulated contributions one and only one person who was living at the time of his death.
(3)	The member had not instructed the Board of Trustees in writing that he did not wish the provisions of this subsection to apply.
For the purpose of this benefit, a member is considered to be in service at the date of his death if his death occurs within 180 days from the last day of his actual service.  The last day of actual service shall be determined as provided in subsection (l)	of this section.  Upon the death of a member in service, the surviving spouse may make all purchases for creditable service as provided for under this Chapter for which the member had made application in writing prior to the date of death, provided that the date of death occurred prior to or within 60 days after notification of the cost to make the purchase.  The term 'in service' as used in this subsection includes a member in receipt of a benefit under the Disability Income Plan as provided in Article 6 of this Chapter."
	(k)  G.S. 120-4.22A is amended by adding a new subsection to read:
"( i)	In accordance with subsection (a) of this section, from and after July 1, 1994, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 1994, shall be increased by three and one-half percent (3.5%) of the allowance payable on January 1, 1994.  Furthermore, from and after July 1, 1994, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 1994, but before June 30, 1994, shall be increased by a prorated amount of three and one-half percent (3.5%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 1994, and June 30, 1994."
(l)  G.S. 128-27 is amended by adding two new subsections to read:
"( mm)	Increase in Allowance as to Persons on Retirement Rolls as of June 1, 1994. – From and after July 1, 1994, the retirement allowance to or on account of beneficiaries on the retirement rolls as of June 1, 1994, shall be increased by six-tenths of one percent (.6%) of the allowance payable on June 1, 1994.  This allowance shall be calculated on the allowance payable and in effect on June 30, 1994, so as not to be compounded on any other increase payable under subsection (k) of this section or otherwise granted by act of the 1993 General Assembly in 1994.
(nn)	From and after July 1, 1994, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1993, shall be increased by two and eight-tenths percent (2.8%) of the allowance payable on July 1, 1993, in accordance with G.S. 128-27(k).  Furthermore, from and after July 1, 1994, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1993, but before June 30, 1994, shall be increased by a prorated amount of two and eight-tenths percent (2.8%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1993, and June 30, 1994."
(m)  G.S. 135-5 is amended by adding two new subsections to read:
"( xx)	Increase in Allowance as to Persons on Retirement Rolls as of June 1, 1994. – From and after July 1, 1994, the retirement allowance to or on account of beneficiaries on the retirement rolls as of June 1, 1994, shall be increased by one and two-tenths of one percent (1.2%) of the allowance payable on June 1, 1994.  This allowance shall be calculated on the allowance payable and in effect on June 30, 1994, so as not to be compounded on any other increase granted by act of the 1993 General Assembly, 1994 Regular Session.
(yy)	From and after July 1, 1994, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1993, shall be increased by three and one-half percent (3.5%) of the allowance payable on July 1, 1993, in accordance with G.S. 135-5(o).  Furthermore, from and after July 1, 1994, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1993, but before June 30, 1994, shall be increased by a prorated amount of three and one-half percent (3.5%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1993, and June 30, 1994."
(n)  G.S. 135-65 is amended by adding a new subsection to read:
	"( o)  From and after July 1, 1994, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 1993, shall be increased by three and one-half percent (3.5%) of the allowance payable on July 1, 1993.  Furthermore, from and after July 1, 1994, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 1993, but before June 30, 1994, shall be increased by a prorated amount of three and one-half percent (3.5%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 1993, and June 30, 1994."
(o)  This section becomes effective July 1, 1994.

Requested by: Senators Sherron, Carpenter
MODIFY THE BENEFIT RESTRICTIONS FOR REEMPLOYED RETIREES IN THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, AND IN THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM
Sec. 11.31. (a)	G.S. 128-24(5)c. reads as rewritten:
"c. 	Should a beneficiary who retired on an early or service retirement allowance be reemployed, or otherwise engaged to perform services, by an employer participating in the Retirement System on a part-time, temporary, interim, or on fee-for-service basis, whether contractual or otherwise, 
					and if such beneficiary earns an amount in any calendar year which exceeds fifty percent (50%) of the reported compensation, excluding terminal payments, during the 12 months of service preceding the effective date of retirement, or twenty thousand dollars ($20,000), whichever is greater, as hereinafter indexed, then the retirement allowance shall be suspended as of the first day of the month following the month in which the reemployment earnings exceed the amount above, for the balance of the calendar year.  The retirement allowance of the beneficiary shall be reinstated as of January 1 of each year following suspension.  The amount that may be earned before suspension shall be increased on January 1 of each year by the ratio of the Consumer Price Index to the Index one year earlier, calculated to the nearest tenth of a percent (1/10 of 1%)."
(b) G.S. 128-24(5)d. reads as rewritten:
"d. 	Should a beneficiary who retired on an early or service retirement allowance be restored to service as an employee, then the retirement allowance shall cease as of the first day of the month following the month in which the beneficiary is restored to service and the beneficiary shall become a member of the Retirement System and shall contribute thereafter as allowed by law at the uniform contribution payable by all members.
		Upon his subsequent retirement, he shall be paid a retirement allowance determined as follows:
1. 	For a member who earns at least three years' membership service after restoration to service, the retirement allowance shall be computed on the basis of his compensation and service before and after the period of prior retirement without restriction; provided, that if the prior allowance was based on a social security leveling payment option, the allowance shall be adjusted actuarially for the difference between the amount received under the optional payment and what would have been paid if the retirement allowance had been paid without optional modification.
2. 	For a member who does not earn three years' membership service after restoration to service, the retirement allowance shall be equal to the sum of the retirement allowance to which he would have been entitled had he not been restored to service, without modification of the election of an optional allowance previously made, and the retirement allowance that results from service earned since being restored to service; provided, that if the prior retirement allowance was based on a social security leveling payment option, the prior allowance shall be adjusted actuarially for the difference between the amount that would have been paid for each month had the payment not been suspended and what would have been paid if the retirement allowance had been paid without optional modification."
(c) G.S. 135-1(10) reads as rewritten:
"(10)	'Employee' shall mean all full-time employees, agents or officers of the State of North Carolina or any of its departments, bureaus and institutions other than educational, whether such employees are elected, appointed or employed: Provided that the term 'employee' shall not include any person who is a member of the Consolidated Judicial Retirement System, any member of the General Assembly or any part-time or temporary employee. Notwithstanding any other provision of law, 'employee' shall include all employees of the General Assembly except participants in the Legislative Intern Program, pages, and reemployed beneficiaries in receipt of a monthly retirement allowance under this Chapter. In all cases of doubt, the Board of Trustees shall determine whether any person is an employee as defined in this Chapter. 'Employee' shall also mean every full-time civilian employee of the army national guard and air national guard of this State who is employed pursuant to section 709 of Title 32 of the United States Code and paid from federal appropriated funds, but held by the federal authorities not to be a federal employee: Provided, however, that the authority or agency paying the salaries of such employees shall deduct or cause to be deducted from each employee's salary the employee's contribution in accordance with applicable provisions of G.S. 135-8 and remit the same, either directly or indirectly, to the Retirement System; coverage of employees described in this sentence shall commence upon the first day of the calendar year or fiscal year, whichever is earlier, next following the date of execution of an agreement between the Secretary of Defense of the United States and the Adjutant General of the State acting for the Governor in behalf of the State, but no credit shall be allowed pursuant to this sentence for any service previously rendered in the above-described capacity as a civilian employee of the national guard: Provided, further, that the Adjutant General, in his discretion, may terminate the Retirement System coverage of the above-described national guard employees if a federal retirement system is established for such employees and the Adjutant General elects to secure coverage of such employees under such federal retirement system. Any full-time civilian employee of the national guard described above who is now or hereafter may become a member of the Retirement System may secure Retirement System credit for such service as a national guard civilian employee for the period preceding the time when such employees became eligible for Retirement System coverage by paying to the Retirement System an amount equal to that which would have constituted employee contributions if he had been a member during the years of ineligibility, plus interest. Employees of State agencies, departments, institutions, boards, and commissions who are employed in permanent job positions on a recurring basis and who work 30 or more hours per week for nine or more months per calendar year are covered by the provisions of this subdivision."
(d)	G.S. 135-3(8)c. reads as rewritten:
"c.	Should a beneficiary who retired on an early or service retirement allowance under this Chapter be reemployed, or otherwise engaged to perform services, by an employer participating in the Retirement System on a part-time, temporary, interim, or on fee-for-service basis, whether contractual or otherwise, 
					and if such beneficiary earns an amount in any calendar year which exceeds fifty percent (50%) of the reported compensation, excluding terminal payments, during the 12 months of service preceding the effective date of retirement, or twenty thousand dollars ($20,000), whichever is greater, as hereinafter indexed, then the retirement allowance shall be suspended as of the first day of the month following the month in which the reemployment earnings exceed the amount above, for the balance of the calendar year.  The retirement allowance of the beneficiary shall be reinstated as of January 1 of each year following suspension.  The amount that may be earned before suspension shall be increased on January 1 of each year by the ratio of the Consumer Price Index to the Index one year earlier, calculated to the nearest tenth of a percent (1/10 of 1%)."
(e) G.S. 135-3(8)d. reads as rewritten:
"d.	Should a beneficiary who retired on an early or service retirement allowance under this Chapter be restored to service as an employee or teacher, then the retirement allowance shall cease as of the first of the month following the month in which the beneficiary is restored to service and the beneficiary shall become a member of the Retirement System and shall contribute thereafter as allowed by law at the uniform contribution payable by all members.
		Upon his subsequent retirement, he shall be paid a retirement allowance determined as follows:
1.	For a member who earns at least three years' membership service after restoration to service, the retirement allowance shall be computed on the basis of his compensation and service before and after the period of prior retirement without restrictions; provided, that if the prior allowance was based on a social security leveling payment option, the allowance shall be adjusted actuarially for the difference between the amount received under the optional payment and what would have been paid if the retirement allowance had been paid without optional modification.
2.	For a member who does not earn three years' membership service after restoration to service, the retirement allowance shall be equal to the sum of the retirement allowance to which he would have been entitled had he not been restored to service, without modification of the election of an optional allowance previously made, and the retirement allowance that results from service earned since being restored to service; provided, that if the prior retirement allowance was based on a social security leveling payment option, the prior allowance shall be adjusted actuarially for the difference between the amount that would have been paid for each month had the payment not been suspended and what would have been paid if the retirement allowance had been paid without optional modification.
e.	Any beneficiary who retired on an early or service retirement allowance as an employee of any State department, agency or institution under the Law Enforcement Officers' Retirement System and becomes employed as an employee by a State department, agency, or institution as an employer participating in the Retirement System shall become subject to the provisions of G.S. 135-3(8)c and G.S. 135-3(8)d on and after January 1, 1989."
(f)  This section becomes effective January 1, 1995.

PART 7.  OFFICE OF STATE BUDGET AND MANAGEMENT

BUDGET REFORM STATEMENTS/APPROPRIATIONS ADJUSTMENTS
Sec. 12.  The General Fund and availability used in developing the 1993-95 budget is as shown below:

	1993-94 	1994-95
	Recurring	Nonrecurring

AVAILABILITY:
Estimated Remaining
Balance from 1993-94	$     -	$     -	$519.2
Unappropriated Balance
from the 1993 Session	4.7	209.6	    -
Revenue Forecast Increase	294.7	294.7	    -

Additional Increases:
Insurance Fund	     -	1.3	-
Non-Tax Revenue	       -	     2.7	        -
Total Availability	$299.4	$508.3	$519.2

1994 Crime Session
Appropriations	$ 26.9	$168.3	$ 61.5

Unobligated Availability	272.5
1993-94 Estimated Reversions	  233.2
Total Credit Balance	$505.7

Earmarking:
Savings Reserve	126.4
Repairs and Renovations
  Reserve	    60.0
Total Earmarking	$ 186.4

Balance	$ 319.3	$340.0	$457.7

Additional Availability:
Disproportionate Share
  Funds (Earmarked)	114.2	     -	     -
Disproportionate Share
  Funds - Additional	   85.7	     -	  94.0
Total Additional Availability	$199.9	     -	$94.0

Budget Reductions	      -	172.9	.2

TOTAL BALANCE	$519.2	$512.9	$551.9

Requested by:  Senators Daniel, Plyler
RESERVE FOR IMPLEMENTATION OF FEDERAL OSHA REGULATIONS REGARDING BLOODBORNE PATHOGENS/USE OF FUNDS; LONG-RANGE PLAN
Sec. 12.1.  Funds appropriated in this act to the Office of State Budget and Management for the implementation of the federal OSHA regulations regarding bloodborne pathogens shall be used only to support the cost of testing, inoculations, personal protective equipment, and required cleanup equipment and supplies for employees who are subject to these regulations and only if adequate funds are not available for these purposes.  They shall not be used as planning money or for salaries for any new positions or for any other purpose than specifically authorized by this section.

PART 8.  GENERAL ASSEMBLY

Requested by:   Senators Plexico, Martin of Guilford
FINANCIAL AUDIT OF THE DEPARTMENT OF INSURANCE
Sec. 13.  Of the funds appropriated in this act to the General Assembly, Legislative Services Commission, the sum of seventy-five thousand dollars ($75,000) for the 1994-95 fiscal year shall be used to contract for an independent financial audit of the Department of Insurance in accordance with the auditing standards set forth in Government Auditing Standards.  The audit shall be completed on or before January 15, 1995.

Requested by: Senator Plexico 
JOINT LEGISLATIVE COMMISSION ON SEAFOOD AND AQUACULTURE STEERING COMMITTEE
Sec. 14.  Of the funds appropriated in this act to the General Assembly, the sum of twenty-five thousand dollars ($25,000) in the 1994-95 fiscal year may be used to support the official activities of the Joint Legislative Commission on Seafood and Aquaculture Steering Committee.  The Legislative Research Commission may allocate these funds for the purposes stated in this section only if Senate Bill 1436 is enacted by the 1993 General Assembly.

PART 9.  GENERAL GOVERNMENT

Requested by:   Senator Plexico
NORTH CAROLINA INFORMATION HIGHWAY GRANT PROGRAM 
Sec. 15.  Controller's Funds Revert:  Notwithstanding any other law, funds in the amount of four million one hundred thousand dollars ($4,100,000)  appropriated to the Office of the State Controller in Chapter 561 of the 1993 Session Laws for the 1993-94 fiscal year for the State Telecommunications System shall revert to the General Fund.
Sec. 15.1.  Aid to Local School Administrative Units:
(a)	Of the funds appropriated to Aid to Local School Administrative Units for the 1994-95 fiscal year, the sum of three million seven hundred ninety-two thousand dollars ($3,792,000) shall be used for the North Carolina Information Highway (NCIH) Grant Program.  These funds shall be allocated to 24 local school administrative units for pilot projects demonstrating the use of broadband telecommunication technology to improve student performance.
(b)	Only local school administrative units eligible to receive low-wealth school supplemental funding or small school system supplemental funding shall be eligible for grants:  Provided, however, any local school administrative unit that has a plan for using broadband telecommunication technology to improve student performance may use funds from other sources to participate in the North Carolina Information Highway.  A low-wealth school system that loses its low-wealth status shall not continue to receive grant funding.  A local school administrative unit applying for a grant shall submit to the State Board of Education an application that indicates (i) how the use of the grant funds will be used to improve student performance (ii) and any other criteria adopted by the State Board.
The Department of Public Instruction shall review grant applications to determine the likelihood that the proposed project will improve student performance, the evidence that the school is willing to sustain its participation in the program, the demonstrated special need for broadband telecommunications access, and the evidence of the applicant's readiness to use the technology.  In selecting grant recipients, the State Board of Education shall:
(1)	Consider the recommendations of the Department of Public Instruction,
(2)	Give highest priority to qualified applicants that have the least ability to fund broadband telecommunication technology without a grant of State funds, and
(3)	Give additional priority to qualified applicants that have been placed on warning or low-performing status by the State Board of Education.
(c) Each grant awarded shall consist of a capital component and an operating component.  The capital component of the grant shall be used to convert and equip one classroom for interactive video use.  The capital component shall be a nonrecurring award in an amount not to exceed one hundred twenty-five thousand dollars ($125,000).
The operating component of a grant award shall extend for a three-year period and shall be used for monthly operating charges arising from the instructional use of broadband telecommunications technology.
(d) The Superintendent of Public Instruction shall administer the grant program and provide technical assistance pertaining to the educational aspects of technology-based instruction to grant applicants and recipients. The Superintendent may contract with outside consultants to provide the technical assistance.
The Superintendent may request assistance from the Office of the State Controller in providing technical assistance requested by local school administrative units pertaining to the aspects of technology-based instruction other than the educational aspects.
(d1) The North Carolina School of Science and Mathematics shall provide courses to students and teachers that are public school pilot projects funded under this section.   The North Carolina School of Science and Mathematics may also provide courses to students and teachers in other public schools participating in the North Carolina Information Highway, to the extent that funds are available to do so.
The North Carolina School of Science and Mathematics shall consider the needs of the schools participating in the pilot projects and shall work with these schools in offering courses and services through the North Carolina Information Highway.
(e) The State Board of Education shall contract with an outside researcher to evaluate the results of the pilot projects.  The goal of the evaluation shall be to identify and isolate the particular role interactive video, via a fiber optics foundation, plays in improving student achievement, attitudes, motivation, and behavior, when compared to other (i) traditional classroom settings, (ii) analog or digital TV with keypad interaction, (iii) satellite television with keypad interaction, and (iv) other technologies.
The outside researcher shall compare the performance of the students who have access to broadband telecommunications technology to those who do not.  The research shall be conducted in two phases.  The first phase shall include a review of available studies, including data gathered in other states or by federal agencies, to determine the relationship between student performance and broadband telecommunications applications in schools.  The second phase shall measure and compare the performance of students who are participating in a pilot project to those who are not.  In conducting these measures and comparisons, the researcher shall match the demographic characteristics and the learning styles of students, the teaching styles of teachers, and other relevant factors.
	The State Board of Education shall report the results of the study on a periodic basis to the Joint Legislative Education Oversight Committee and to the Joint Legislative Commission on Governmental Operations.  The State Board of Education shall also report, in conjunction with the Office of the State Controller, to the Joint Legislative Education Oversight Committee on the implementation of the Grant Program, including staff development and maintenance activities.  The State Board shall make a final report to the Joint Legislative Education Oversight Committee and to the Joint Legislative Commission on Governmental Operations prior to the convening of the 1997 General Assembly.  The 1997 General Assembly shall use the report to make its determination of whether to continue the pilot projects, and if so, at what level and in what form.
(f) Of the funds appropriated to Aid to Local School Administrative Units for the 1994-95 fiscal year, the sum of two hundred thousand dollars ($200,000) shall be allocated to the State Board of Education to implement subsection (e) of this section.
(g) The Superintendent shall create a Division of Information Resources Management within the Department to manage the Department's information systems and information technology initiatives, and to provide technical assistance to local school administrative units regarding the use of education technology, business systems, instructional management systems, and the North Carolina Information Highway.
Sec. 15.2.  Department of Community Colleges:  (a)	Of the funds appropriated to the Department of Community Colleges for the 1994-95 fiscal year, the sum of five hundred seventy-six thousand dollars ($576,000) shall be used for the North Carolina Information Highway (NCIH) Community College Grant Program.  These funds shall be allocated to 12 community colleges for pilot projects demonstrating the use of broadband telecommunication technology to improve student performance:  Provided, however, any community college that has a plan for using broadband telecommunication technology to improve student performance or otherwise significantly enhance other educational objectives may use funds from other sources to participate in the North Carolina Information Highway.
(b)	A community college applying for a grant shall submit to the State Board of Community Colleges an application that indicates (i) how the use of the grant funds will be used to improve student performance (ii) and any other criteria adopted by the State Board.
(c) The Department of Community Colleges shall review grant applications to determine the likelihood that the proposed project will improve student performance, the evidence that the school is willing to sustain its participation in the program, and the demonstrated special need for broadband telecommunications access.  In selecting grant recipients, the State Board of Community Colleges shall consider the recommendations of the Department of Community Colleges.  The State Board shall give highest priority to qualified applicants that have the lowest curriculum FTE and, within that criteria, to applicants who have progressed further in their plans for the development of the program.
(d) Each grant awarded shall consist of operating funds only. The grant award shall extend for a three-year period and shall be used for monthly operating charges arising from the instructional use of broadband telecommunications technology.
(e) The Department of Community Colleges shall administer the grant program and provide technical assistance to pertaining to the educational aspects of technology-based instruction to grant applicants and recipients. The Department may contract with outside consultants to provide the technical assistance.
The Department may request assistance from the Office of the State Controller in providing technical assistance requested by community colleges pertaining to the aspects of technology-based instruction other than the educational aspects.
(f) The State Board of Community Colleges shall contract with an outside researcher to evaluate the results of the pilot project.  The goal of the evaluation shall be to identify and isolate the particular role interactive video, via a fiber optics foundation, plays in improving student achievement when compared to other (i) traditional classroom settings, (ii) analog or digital TV with keypad interaction, (iii) satellite television with keypad interaction, and (iv) other technologies.
The outside researcher shall compare the performance of the students who have access to broadband telecommunications technology to those who do not.  The research shall be conducted in two phases.  The first phase shall include a review of available studies, including data gathered in other states or by federal agencies, to determine the relationship between student performance and broadband telecommunications applications in schools.  The second phase shall measure and compare the performance of community college students who are participating in a pilot project to those community college students who are not participating in a pilot project.  In conducting these measures and comparisons, the researcher shall match the demographic characteristics and the learning styles of students, the teaching styles of teachers, and other relevant factors.
	The State Board of Community Colleges shall report the results of the study on a periodic basis to the Joint Legislative Education Oversight Committee and to the Joint Legislative Commission on Governmental Operations.  The State Board of Community Colleges shall also report, in conjunction with the Office of the State Controller, to the Joint Legislative Education Oversight Committee on the implementation of the Grant Program, including staff development and maintenance activities.  The State Board shall make a final report to the Joint Legislative Education Oversight Committee and to the Joint Legislative Commission on Governmental Operations prior to the convening of the 1997 General Assembly.  The 1997 General Assembly shall use the report to make its determination of whether to continue the pilot project, and if so, at what level and in what form.
(g) Of the funds appropriated to the Department of Community Colleges for the 1994-95 fiscal year, the sum of one hundred thousand dollars ($100,000) shall be allocated to implement subsection (f) of this section.
Sec. 15.3.  Grant Programs Advisory Council:  The State Board of Education and the State Board of Community Colleges shall jointly create an Advisory Council to assist them in coordinating the North Carolina Information Highway Grant Program created in this act, developing implementation strategies for the Grant Programs, and evaluating the Grant Programs.  The Advisory Council shall also advise the Office of the State Controller on issues relating to staff development and maintenance activities as they apply to the North Carolina Information Highway in the public schools and community colleges.
The Advisory Council shall consist of the following members:
(1)	Three members of the Senate appointed by the President Pro Tempore of the Senate, one of whom shall be designated by the President Pro Tempore of the Senate as cochair;
(2)	Three members of the House of Representatives appointed by the Speaker of the House of Representatives, one of whom shall be designated by the Speaker of the House of Representatives as cochair; and
(3)	No more than 9 additional members who are representatives of one or more of the following agencies appointed by the heads of those agencies upon the joint request of the State Board of Education and the State Board of Community Colleges:
a.	The Office of the Governor,
b.	The Department of Public Instruction,
c.	The Department of Community Colleges,
d.	The University of North Carolina,
e.	The Division of Information Resources Management of the Office of the Controller,
f.	The Division of State Information Processing Services of the Office of the Controller,
g.	The North Carolina School of Science and Mathematics, and
h.	Other State agencies that may add knowledge needed by the Advisory Council.
The appointing agency shall pay the per diem and expenses of the members it appoints.
The Department of Public Instruction and the Department of Community Colleges shall provide clerical assistance to the Advisory Council.
Sec. 15.4.  MCNC:  Of the funds appropriated in this act to the Microelectronic Center of North Carolina (MCNC) for the 1994-95 fiscal year, the sum of one million three hundred thirteen thousand dollars ($1,313,000) shall be used to pay the connecting charges and operating costs to join the following universities to the North Carolina Research and Education Network:  Appalachian State University, Elizabeth City State University, Fayetteville State University, North Carolina Central University, Pembroke State University, University of North Carolina at Greensboro, University of North Carolina at Wilmington, and Western Carolina University.
Sec. 15.5.  G.S. 116C-1(c) reads as rewritten:
"(c)	The Education Cabinet shall be a nonvoting body that:
(1)	Works to resolve issues between existing providers of education.
(2)	Sets the agenda for the State Education Commission.
(3)	Develops a strategic design for a continuum of education programs, in accordance with G.S. 116C-3.
(3a)	Work to resolve issues within institutions and between institutions relating to funding of the instructional aspects of the North Carolina Information Highway, including the transfer of credits, enrollment issues related to the budget formulas, and agreements between institutions, and report its progress to the Joint Legislative Education Oversight Committee by January 1, 1995, and biannually thereafter.
(4)	Studies other issues referred to it by the Governor or the General Assembly."
Sec. 15.6.  G.S. 143B-426.39(14) reads as rewritten:
"(14)	With respect to State agencies, exercise general coordinating authority for all telecommunications matters relating to the internal management and operations of these agencies.  In discharging that responsibility the State Controller may in cooperation with affected State agency heads, do such of the following things as he deems necessary and advisable:
a.	Provide for the establishment, management, and operation, through either State ownership or commercial leasing, of the following systems and services as they affect the internal management and operation of State agencies:
1.	Central telephone systems and telephone networks;
2.	Teleprocessing systems;
3.	Teletype and facsimile services;
4.	Satellite services;
5.	Closed-circuit TV systems;
6.	Two-way radio systems;
7.	Microwave systems;
8.	Related systems based on telecommunication technologies.
b.	With the approval of the Information Technology Council, coordinate the development of cost-sharing systems for respective user agencies for their proportionate parts of the cost of maintenance and operation of the systems and services listed in item "a." of this subdivision.
c.	Assist in the development of coordinated telecommunications services or systems within and among all State agencies and recommend, where appropriate, cooperative utilization of telecommunication facilities by aggregating users.
d.	Perform traffic analysis and engineering for all telecommunications services and systems listed in item "a." of this subdivision.
e.	Pursuant to G.S. 143-49, establish telecommunications specifications and designs so as to promote and support compatibility of the systems within State agencies.
f.	Pursuant to G.S. 143-49 and G.S. 143-50, coordinate the review of requests by State agencies for the procurement of telecommunications systems or services.
g.	Pursuant to G.S. 143-341 and Chapter 146 of the General Statutes, coordinate the review of requests by State agencies for State government property acquisition, disposition, or construction for telecommunications systems requirements.
h.	Provide a periodic inventory of telecommunications costs, facilities, systems, and personnel within State agencies.
i.	Promote, coordinate, and assist in the design and engineering of emergency telecommunications systems, including but not limited to the 911 emergency telephone number program, Emergency Medical Services, and other emergency telecommunications services.
j.	Perform frequency coordination and management for State agencies and local governments, including all public safety radio service frequencies, in accordance with the rules and regulations of the Federal Communications Commission or any successor federal agency.
k.	Advise all State agencies on telecommunications management planning and related matters and provide through the State Personnel Training Center or the State Information Processing Services training to users within State agencies in telecommunications technology and systems.
l.	Assist and coordinate the development of policies and long-range plans, consistent with the protection of citizens' rights to privacy and access to information, for the acquisition and use of telecommunications systems; and base such policies and plans on current information about State telecommunications activities in relation to the full range of emerging technologies.
m.	Work cooperatively with the North Carolina Agency for Public Telecommunications in furthering the purpose of this subdivision.
n.	Coordinate the operational, technical, staff development, and maintenance activities related to the North Carolina Information Highway, and provide technical assistance to participating local school administrative units and community colleges as requested by the Superintendent of Public Instruction and the Department of Community Colleges.
The provisions of this subdivision shall not apply to the Criminal Information Division of the Department of Justice or to the Judicial Information System in the Judicial Department."
Sec. 15.7.  Of the funds appropriated to the Office of the Controller in this act, the sum of three hundred thousand dollars ($300,000) shall be used to provide technical assistance to local school administrative units and local community colleges in accordance with G.S. 143B-426.39(14)n.
Sec. 15.8.  The General Assembly encourages the concept of a switched broadband information highway run by private sector industry, where the State could be a customer, that would (i) enhance the delivery of education, health care, and other services to all of the people of North Carolina and (ii) promote economic development throughout all the counties of North Carolina.

PART 10.  DEPARTMENT OF ADMINISTRATION

Requested by:   Senator Plexico
DOMESTIC VIOLENCE CENTER FUNDS TRANSFERRED 
Sec. 16.  (a)	Funds appropriated to the Department of Administration for domestic violence centers in Chapter 321 and Chapter 561 of the 1993 Session Laws are transferred to the Domestic Violence Center Fund established under G.S. 50B-9. 
(b)	Section 31 of Chapter 321 of the 1993 Session Laws, as amended by Section 30 of Chapter 561 of the 1993 Session Laws, reads as rewritten:
"Sec. 31.  The funds appropriated to the Department of Administration, the North Carolina Council for Women, for the 1994-95 fiscal year for domestic violence centers shall be administered in accordance with G.S. 50B-9."

DEPARTMENT OF CULTURAL RESOURCES

Requested by: Senator Plyler 
CULTURAL RESOURCES FUNDS REALLOCATION
Sec. 18.  Of the funds appropriated in Section 4 of Chapter 561 of the 1993 Session Laws to the Department of Cultural Resources for the Museum of History - Core Exhibition Design and Construction, the sum of seven hundred thousand dollars ($700,000) for the 1994-95 fiscal year shall be reallocated in the following amounts and shall be used for the following purposes:
(1)	$300,000 for the Museum of the Cape Fear,
(2)	$50,000 for the Thomas Day House,
(3)	$50,000 for the Newbold White House,
(4)	$50,000 for the Albemarle-Stanly County Historic Preservation Commission,
(5)	$150,000 for the Chinqua-Penn Plantation - Planning Grant,
(6)	$50,000 for the Union County Arts Council, and
(7)	$50,000 for the Alamance County Arts Council.

PART 11.  OFFICE OF THE GOVERNOR

Requested by:   Senators Martin of Guilford, Plexico
REPORT TO AUDITOR ON TRANSFERS BETWEEN OBJECTS AND ITEMS
Sec. 19.  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, the Fiscal Research Division of the Legislative Services Office, and the State Auditor 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, 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, the Fiscal Research Division of the Legislative Services Office, and the State Auditor.
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 and the State Auditor shall not apply to expenditures of receipts by entities that are wholly receipt supported, except for entities supported by the Wildlife Resources Fund.
The State Auditor shall review the report received from the Director of the Budget to ensure that the transfer complied with the intent and the provisions of this Article and shall report the Auditor's findings to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division."

PART 12.  DEPARTMENT OF INSURANCE

Requested by:   Senator Plexico
CONTROLLER'S RECOMMENDATIONS/INSURANCE DEPARTMENT'S CHART OF ACCOUNTS
Sec. 20.  The Office of the State Controller performed a review of the Department of Insurance's chart of accounts in accordance with Section 42 of Chapter 321 of the 1993 Session Laws and reported its findings and recommendations in a letter dated March 1, 1994, to the President Pro Tempore of the Senate and the Speaker of the House of Representatives.  The Office of the State Controller made several recommendations to bring the Department's accounting practices in compliance with standards promulgated by the Governmental Accounting Standards Board (GASB) and to be consistent with the accounting principles and guidelines prescribed for use within the State's accounting system.  The Department of Insurance and the Office of State Budget and Management under the supervision of the Office of the State Controller shall implement the first three recommendations of the Office of the State Controller with regard to the following:
(1)	Governmental Accounting Standards Board Classifications. – The Office of State Budget and Management and the Department of Insurance shall establish two special revenue budget codes, interest bearing and non-interest bearing, to be on deposit with the State Treasurer. The following list of funds within budget code number 63900 shall be recorded in an interest bearing special revenue budget code:
Fund	   Title	GASB	Reassigned
  No. 	GASB No.
6112	Safety Grants Program	3100	1319 
6123	Volunteer Rescue/EMS	3100	1319
6133	Volunteer Fire Dept.	3100	1319
6134	Special Training Schools	3900	1300
6135	Fire and Rescue Journals	3900	1319
6140	Fire Prevention Week	3900	1319
6501	Qualification Board Fund	3900	1319
	The following list of funds within budget code number 63901 shall be recorded in a non-interest bearing special revenue fund:
Fund	  Title	GASB	Reassigned
  No.	GASB No.
6121	NC Firemen's Assoc. Grant	3100	1319
6122	Res. Squad Workers Relief	3100	1319

(2)	Incorrect Budget Code. – The Department of Insurance Fund (DAS Fund 6000) and the Consumer Protection Fund (DAS Fund 6001) shall be accounted for in an interest bearing special revenue budget code.  The Continuing Education Program (DAS Fund 6231) shall be accounted for in a non-interest bearing special revenue budget code.  The funds are being recorded as a special revenue fund for financial reporting purposes.
(3)	Classification of Divisions Currently Accounted For in Trust Funds. – The revenue for the field audit division (DAS fund 6222), market conduct division (DAS fund 6223), and regulatory actions division (DAS fund 6226) of the Department of Insurance shall be recorded in the General Fund as receipts of the Department rather than in trust funds from which transfers are periodically made to the General Fund.

Requested by:   Senator Martin of Guilford
CONSUMER PROTECTION FUND
Sec. 21.  G.S. 58-2-215(d) reads as rewritten:
"(d)	In no event shall more than seventy percent (70%) of the amount in the Fund be allocated or spent for any one purpose specified in subsection (b) of this section in any fiscal year."

Requested by: Senator Plyler
PROVIDE STAFF POSITIONS TO ADMINISTER FIRE AND RESCUE CERTIFICATION PROGRAMS
Sec. 21.1. The North Carolina Fire and Rescue Commission is authorized four staff positions to administer fire and rescue certification programs.  Of the four positions, three shall be field positions and one shall be clerical.  The positions shall be funded by the Department of Insurance Fund and shall become part of the Commission's continuation budget.

PART 13.  DEPARTMENT OF REVENUE

Requested by:   Senator Plexico
STATE CONTROLLER REVIEW OF REVENUE CHART OF ACCOUNTS
Sec. 22.  The Office of the State Controller as authorized by G.S. 143B-426.39 and this section shall review the chart of accounts used by the Department of Revenue and shall report to the 1995 General Assembly and to the Department of Revenue by March 1, 1995, the findings and recommendations of the State Controller's office regarding changes needed to align the accounting practices in the Department of Revenue with standards of the Government Accounting Standards Board and generally accepted principles of governmental accounting used within the State's accounting system.

PART 14.  OFFICE OF THE STATE AUDITOR

Requested by:   Senator Plexico
COST ANALYSIS OF BROADBAND TELECOMMUNICATIONS
Sec. 23.  The State Auditor shall conduct a comprehensive analysis to determine costs of applying broadband telecommunications technology to:  public schools, community colleges, universities, hospitals, State agencies and other State-owned institutions.  Issues to be addressed during the study shall include the following:
(1)	The costs to the State of using this technology including the following:  hardware and software contracts; consultant, service, and communication provider contracts; and executed site plan commitments (Documents of Understanding).
(2)	The projected costs to the State of using this technology including the following:  projected hardware and software costs for all sites; projected costs of consultant, service, and communication provider services; projected personnel and equipment costs associated with the use of broadband technology at all sites including State Information Processing Services in the Office of the State Controller and also the MCNC.
(3)	Any other issues relating to broadband technology and the State's use of this technology that the Office of the State Auditor, in the exercise of its discretion, deems necessary or advisable.
All State agencies and officials shall cooperate fully with the Office of the State Auditor in its performance of this study.  This includes providing ready and complete access to all materials, including those in draft form and those that may contain confidential, proprietary, or similar information.  It is the intent of the General Assembly that the Office of the State Auditor have the same independence in conducting this study as is provided by G.S. 147-64.8 for an audit. 

PART 15.  STATE BOARD OF ELECTIONS

Requested by: Senator Plexico 
STATE BOARD OF ELECTIONS NEEDS ASSESSMENT
Sec. 25.  (a)	The State Board of Elections shall conduct a needs assessment and requirements analysis for computerized voter registration.  The needs assessment shall determine whether there is a need for additional computerization of voter registration on a statewide basis, on the county level, or both.  The requirements analysis shall prepare specifications for the additional computerization, if any, that the needs assessment determines is needed.  Those specifications shall include, but not necessarily be limited to, functional requirements, performance requirements, interface requirements with other computer applications, data communications requirements, computer application design requirements, and project development standards.
The State Board of Elections shall use an outside consultant, procured through the Department of Administration, Division of Purchase and Contract, to conduct the needs assessment and requirements analysis.  In requests for bids, requests for quotes, requests for proposals, or other procurement actions issued through the Department of Administration, Division of Purchase and Contract, or through any other State agency, for a consultant to write these specifications there shall be a provision that reads as follows:
"Eligibility for Future Requirements:  The successful offeror on this project will not be considered for an award on subsequent hardware, software, software support, and related procurements which are based on specifications or recommendations resulting from this procurement."
The Division of Purchase and Contract and the State agency or agencies involved in the procurement may delete this provision in a procurement request by jointly:
(1)	Filing a written request with the Director of the Budget for authorization to delete this provision from the procurement effort,
(2)	Sending a copy of this written request for authorization to the Director of the Fiscal Research Division at the time it is filed with the Office of State Budget, 
(3)	Receiving written authorization to delete the provision from the Director of the Budget, and 
(4)	Reporting the authorization, if it is granted, to the Director of the Fiscal Research Division and to the next meeting of the Joint Legislative Commission on Governmental Operations.
(b)	Of the funds appropriated in this act to the State Board of Elections the sum of one million five hundred thousand dollars ($1,500,000) for fiscal year 1994-95 shall be deposited into a reserve fund for computerized voter registration. The State Board of Elections may spend money from the reserve fund only after the following conditions have been met:
(1)	A needs assessment and requirements analysis has been conducted in accordance with subsection (a) of this section and has recommended that investments be made in computerized voter registration, and that the State Board of Elections has developed a specific proposal for computerization in accordance with the recommendations of that needs assessment and requirements analysis.
(2)	The specific proposal developed with the State Board of Elections in accordance with subdivision (1) of this subsection has been approved by the Information Resource Management Commission.
(3)	After the conditions of subdivisions (1) and (2) of this subsection have been met, the State Board of Elections has reported its specific plans for computerized voter registration to the Joint Legislative Commission on Governmental Operations.
After the conditions in subdivisions (1) through (3) of this subsection have been met, the State Board of Elections may spend money from the fund created by this subsection, but only for a computerization plan that has met those three conditions.
(c)	To the extent that this section conflicts with G.S. 163-82.11, G.S. 163-82.12, or G.S. 163-82.13, if enacted, this section prevails to the extent of the conflict.

PART 16.  COLLEGES AND UNIVERSITIES

Requested by:   Senator Ward
AID TO STUDENTS ATTENDING PRIVATE COLLEGES/ PROCEDURE
Sec. 26.  Subsections (a) and (b) of Section 80 of Chapter 321 of the 1993 Session Laws read as rewritten:
"Sec. 80.  (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."

Requested by:   Senator Ward
NATIVE AMERICAN SCHOLARSHIP ELIGIBILITY
Sec. 27.  The Board of Governors of The University of North Carolina shall adopt policies that ensure that Native Americans are eligible for the Minority Presence Grants at each of the constituent institutions.

Requested by:   Senator Ward
AGRICULTURAL PROGRAMS
Sec. 28.  Of the funds appropriated in this act to the Board of Governors of The University of North Carolina, four hundred fifty thousand dollars ($450,000) shall be allocated for matching federal funds and enhancement of the agricultural research and extension programs at North Carolina Agricultural and Technical State University.
North Carolina Agricultural and Technical State University and North Carolina State University shall establish a joint committee to coordinate the efforts of the two campuses in agricultural research and extension and to avoid duplication of efforts.

Requested by:   Senator Ward
AGRICULTURAL AND AQUACULTURAL EXPORT MARKET DEVELOPMENT FUNDS
Sec. 29.  Of the funds appropriated in this act for enhancement of agricultural programs at North Carolina State University, one million eight hundred ninety thousand dollars ($1,890,000) shall be used to further develop export market potential for agricultural and aquacultural products.

Requested by:   Senator Ward
UNC-CH SMITH CENTER FUNDS
Sec. 30.  Of the funds appropriated in this act to the University of North Carolina at Chapel Hill, the sum of four hundred thousand dollars ($400,000) is included from nonrecurring funds to offset operating losses at the Smith Center.  The University of North Carolina shall include these funds in its 1995-97 continuation budget request.  The General Assembly recommends that the Director of the Budget include these funds in the 1995-97 budget recommended to the 1995 General Assembly. 

Requested by:   Senator Ward
UNIVERSITY OF NORTH CAROLINA MANAGEMENT FLEXIBILITY
Sec. 31.  (a) Subsection (f) of Section 206.2 of Chapter 689 of the 1991 Session Laws reads as rewritten:
"(f)	This section is effective upon ratification.  Subsection (c) of this section expires June 30, 1994."
(b)	Part 2A of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116-30.6.  Reports of results.
The Board of Governors shall report annually by March 31 of each year on its decisions and directives implementing this Part to the Joint Legislative Education Oversight Committee.  In particular, the Board shall report on the impact on undergraduate student learning and development as demonstrated by the standard assessment measures established in the institutional effectiveness plans, fiscal savings, management initiatives, increased efficiency and effectiveness, and other outcomes made possible by the flexibility provided by this Part to the special responsibility constituent institutions.  These reports shall include documentation of any reallocation of resources, the use of nonreverted appropriations, and any additional costs incurred."
(c)	G.S. 143-53.1 reads as rewritten:
"§ 143-53.1.  Setting of benchmarks; increase by Secretary.
On and after July 1, 1990, the expenditure benchmark prescribed by G.S. 143-52 with respect to competitive bid procedures and the bid value benchmark authorized by G.S. 143-53(2)	with respect to rule making by the Secretary of Administration for competitive bidding shall be ten thousand dollars ($10,000); provided, the Secretary of Administration may, in his discretion, increase the benchmarks effective as of the beginning of any fiscal biennium of the State commencing after June 30, 1992, in an amount whose increase, expressed as a percentage, does not exceed the rise in the Consumer Price Index during the fiscal biennium next preceding the effective date of the benchmark increase.  For a special responsibility constituent institution of The University of North Carolina, the benchmark prescribed in this section shall be fifty thousand dollars ($50,000).  The special responsibility constituent institutions, in exercising their authority above and beyond the benchmarks set by the Secretary of Administration, shall (i) determine State contract pricing for the item being purchased, and (ii) report these purchases to the State Purchase and Contract Division on a quarterly basis."
(d)	G.S. 116-30.2 reads as rewritten:
"§ 116-30.2.  Appropriations to special responsibility constituent institutions.
All General Fund appropriations made by the General Assembly for continuing operations of a special responsibility constituent institution of The University of North Carolina shall be made in the form of a single sum to each budget code of the institution for each year of the fiscal period for which the appropriations are being made.  Notwithstanding G.S. 143-23(a1), G.S. 143-23(a2), and G.S. 143-23(a3), each special responsibility constituent institution may expend the General Fund monies so appropriated to it in the manner deemed by the Chancellor to be calculated to maintain and advance the programs and services of the institutions, consistent with the directives and policies of the Board of Governors.  The preparation, presentation, and review of General Fund budget requests of special responsibility constituent institutions shall be conducted in the same manner as are requests of other constituent institutions.  The quarterly allotment procedure established pursuant to G.S.143-17 shall apply to the General Fund appropriations made for the current operations of each special responsibility constituent institution.  All General Fund monies so appropriated to each special responsibility constituent institution shall be recorded, reported, and audited in the same manner as are General Fund appropriations to other constituent institutions."
	(e)  This subsection and subsection (d) of this section are effective upon ratification.  Subsection (a) of this section becomes effective June 30, 1994.  Subsections (b) and (c) of this section become effective July 1, 1994.

Requested by: Senator Ward.
UNC COOPERATIVE INSTITUTE FOR FISHERIES OCEANOGRAPHY STUDY
Sec. 32.  Of the funds appropriated in this act to the Board of Governors of The University of North Carolina, the sum of two hundred twenty-five thousand dollars ($225,000) for the 1994-95 fiscal year shall be used for the Cooperative Institute for Fisheries Oceanography to study the fisheries resource and management structure.  These funds may be used for personnel, administrative, and consulting costs.  These funds may be allocated by the Board only if Senate Bill 1436 is enacted by the 1993 General Assembly.

Requested by:   Senator Daniel
NCSU COMPETITIVE INDUSTRIES/FUNDS
Sec. 32.1.  (a) Of the funds appropriated to the Board of Governors of The University of North Carolina in Section 3 of this act, the sum of one million three hundred sixty thousand dollars ($1,360,000) shall be allocated to North Carolina State University at Raleigh to enhance efforts to assure the competitiveness of several traditional industries.  The funds shall be allocated to provide:
(1)	$200,000 to transfer the Agricultural Education Program to the College of Agriculture and Life Sciences;
(2)	$500,000 for extension, research, and support of the furniture industry;
(3)	$360,000 for enhancement of pulp and paper technology efforts; and
(4)	$300,000 for the Nonwovens Cooperative Research Center. 
(b) Effective July 1, 1994, Section 81 of Chapter 321 is repealed.

Requested by: Senator Daniel
NURSE ANESTHETIST TRAINING FUNDS
Sec. 32.2. Section 98 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 98.  Of the funds appropriated to the Board of Governors of The University of North Carolina in this act, the sum of fifty thousand dollars ($50,000) for the 1993-94 fiscal year and the sum of fifty thousand dollars ($50,000) for the 1994-95 fiscal year shall be used for the Area Health Education Center program to contract with the Raleigh School of Nurse Anesthesia for training of certified, registered nurse anesthetists."

PART 17.  DEPARTMENT OF COMMUNITY COLLEGES

Requested by:   Senators Ward, Perdue
PROGRAM REGIONALISM
Sec. 33.  The State Board of Community Colleges shall require that all new programs it approves be developed using a regional approach unless there are extreme extenuating circumstances documented by the college detailing reasons a regional program is not feasible.  The college shall demonstrate that it has attempted to develop a regional program and explain what barriers were in existence.
It is the intent of the General Assembly to increase the number of regional program offerings in community colleges and to eliminate as much duplication of programs by colleges that are within reasonably close proximity to each other.  The General Assembly urges the State Board's Government Performance Audit Committee (GPAC) Task Force on Regionalism to provide more substantive recommendations on how existing, as well as, new programs can be offered regionally as recommended by the GPAC in its next report due in January 1995.
The Department of Community Colleges shall report quarterly to the Joint Legislative Education Oversight Committee on the progress made on regional programs.  The report shall list all programs approved by the State Board that are not regional and the reasons for their approval.

Requested by:   Senator Ward
CONTINUING BUDGET CONCEPT
Sec. 34.  The State Board of Community Colleges shall implement the new continuing budget concept presented to the House and Senate Appropriations Subcommittees during the 1994 Regular Session of the 1993 General Assembly for the 1995-97 biennium and in subsequent years.  In order to ensure more stability in funding, community colleges that experience a decline in enrollment shall not receive a decrease in full-time equivalent student (FTE) enrollment funds until their enrollment declines more than four percent (4%).  At that time, they shall experience a decline of only the amount over four percent (4%).  Community colleges that experience an increase in enrollment shall not experience an increase in full-time equivalent student (FTE) enrollment funds until their enrollment increases more than four percent (4%).  At that time, they shall experience an increase of only the amount over four percent (4%).
It is the intent of this section to implement the recommendation of the Government Performance Audit Committee regarding changing the community college funding formula to one that is a combination of a base funding source with an FTE component.
In addition, the State Board of Community Colleges shall develop a program-based FTE cost model that will fund future FTE's in excess of the four percent (4%) growth on the basis of actual program cost as opposed to an overall average FTE cost.  This plan shall be reported to the 1995 General Assembly.

Requested by:   Senator Ward
STATE BOARD RESERVE FUNDS
Sec. 35.  Of the funds appropriated to the Department of Community Colleges in Chapter 321 of the 1993 Session Laws for the State Board Reserve, forty-six thousand dollars ($46,000) shall be allocated to fund the additional costs associated with the automated central cataloging of library books.
Notwithstanding G.S. 143-16.3, the State Board may use up to three hundred thousand dollars ($300,000) from the State Board Reserve to fund the community colleges leadership development programs that were a part of the State Board's budget request to the 1994 Regular Session of the 1993 General Assembly.

Requested by:   Senator Ward
PRISON CLASSES
Sec. 36.  G.S. 115D-5 is amended by adding a new subsection to read:
"( c1)	Community colleges shall report full-time equivalent (FTE) student hours for correction education programs on the basis of contact hours rather than student membership hours.  No community college shall operate a multi-entry/multi-exit class or program in a prison facility.
The State Board shall work with the Department of Correction on offering classes and programs that match the average length of stay of an inmate in a prison facility."

Requested by:   Senator Ward
1993 PROFESSIONAL COUNSELOR LICENSING ACT EXEMPTION
Sec. 37.  G.S. 90-332.1(a) is amended by inserting a new subdivision to read:
"(4.1)	Any counselor employed by a local community college."

PART 18.  PUBLIC SCHOOLS

Requested by:   Senator Winner of Mecklenburg
SCHOOL TECHNOLOGY PLANS/FUNDS
Sec. 38.  (a)	G.S. 115C-102.5(a) reads as rewritten:
"(a)	There is created the Commission on School Technology.  The Commission shall be located administratively in the Department of Public Instruction but shall exercise all its prescribed statutory powers independently of the Department of Public Instruction.  The Commission shall expire June 30, 1997."
(b) G.S. 115C-102.5(c) reads as rewritten:
"(c)	Notwithstanding G.S. 120-123 and subsection (b) of this section, the Commission shall also include one member of the Senate appointed by the President Pro Tempore of the Senate and one member of the House of Representatives appointed by the Speaker of the House of Representatives.  These members shall be voting members.  The term of office of these members shall end November 1, 1994."
(c) G.S. 115C-102.6 reads as rewritten:
"§ 115C-102.6.  Duty to prepare a requirements analysis and propose a State school technology plan.
The Commission shall prepare a requirements analysis and propose a State school technology plan for improving student performance in the public schools through the use of learning and instructional management technologies.
In developing this plan, the Commission shall:
(1)	Assess factors related to the current use of learning and instructional management technologies in the schools, including what is currently being used, how the current use of technology relates to the standard course of study, how the effectiveness of learning and instructional management technologies is being evaluated, how schools are paying for learning and instructional management technologies, and what training school employees have received in the use of learning and instructional management technology and networks.
(2)	Identify the instructional goals that can be met through the use of learning and instructional management technologies.  The goals may include teaching the standard course of study, reaching students with a broad range of abilities, and ensuring that all students have access to a complete curriculum regardless of the geographical location or the financial resources of the school.
(3)	Examine the types of learning and instructional management technologies available to meet the identified instructional goals, including computers, audiovisual aids, science laboratory equipment, vocational education equipment, and distance learning networks.  The Commission shall consider the compatibility and accessibility of different types of learning and instructional management technologies, including compatibility with the planned statewide broadband ISDN network, and whether they may be easily communicated from one site to another.  The Commission shall also consider linkages between learning and instructional management technologies and existing State and local administrative systems.
(4)	Develop a basic level of learning and instructional management technology for every school in the State.  The basic level may include:
a.	A computer lab with student stations or a specified number of student computer stations in each classroom for the use of instructional software such as computer-assisted instruction, integrated learning systems, instructional management systems, and applications software such as word processing, database, spreadsheet, and desktop publishing.
b.	A computer workstation in every classroom for teachers to use in preparation and delivery of instruction and for administrative record keeping.
c.	A television monitor and video cassette-recorder in every classroom to take advantage of open-air broadcast programs, satellite programs, and instructional video tapes available from the library/media center.
d.	Computer workstations at each elementary and secondary school, housed in the library/media center, for individual students to use for basic skills instructional software.
e.	A telecommunications line, modem, and software in each school's library/media center that will allow students and teachers access to external databases and resources for research purposes.
f.	The availability of telephones for teachers.
g.	Initial training for the principal and teachers from each school in the use of the new technology.
(5)	Consider staffing required to operate the learning and instructional management technologies and options for maintaining the equipment.
(6)	Consider the types of staff development necessary to maximize the benefits of learning and instructional management technologies and determine the appropriate ways to provide the necessary staff development.
(7)	Develop a cost analysis of any plans and proposals that it develops."
(d)	Part 3A of Article 8 of Chapter 115C of the General Statutes is amended by adding four new sections to read:
"§ 115C-102.6A. Elements of the State school technology plan.
(a)	The State school technology plan shall be a long-term State implementation plan for using funds from the State School Technology Fund and other sources to improve student performance in the public schools through the use of learning and instructional management technologies.  The plan shall provide for a foundation of flexible and long-lasting technology that will result in the achievement of substantial gains in student performance in a cost-effective manner.
(b)	Components of the State school technology plan shall include at least the following:
(1)	Common technical standards and uniform practices and procedures that provide statewide economies of scale in procurements, training, support, planning, and operations.
(2)	Conceptual technical architecture that includes:
a.	Principles – Statements of direction, goals, and concepts to guide the development of technical architecture;
b.	Standards – Detailed specifications to ensure hardware, software, databases, and other products that may have been developed independently or purchased from different vendors will work together; and
c.	Implementation strategies – Approaches or guidelines for developing and installing the components of the technical infrastructure.
(3)	A quality assurance policy for all school technology projects, training programs, systems documentation, and maintenance plans.
(4)	Policies and procedures for the fair and competitive procurement of school technology that provide local school administrative units with a vendor-neutral operating environment in which different school technology hardware, software, and networks operate together easily and reliably, to the extent feasible consistent with meeting instructional goals.
(5)	A comprehensive policy for inventory control.
(6)	Parameters for continuous, ongoing training for all personnel involved in the use of school technology.  Training shall focus on the integration of technology and instruction and on the use of particular applications.
(7)	Recommendations to the State Board of Education of requirements for preservice teacher training on the integration of teaching and school technology.
(8)	Proposals for leadership training on the use of school technology to improve instruction and as a management tool.
(9)	Development of expertise at the State and regional levels on school technology.
(10)	Flexibility to enable local school administrative units and individual schools to meet individual school unit and building needs.
(11)	Flexibility to meet the needs of all students, allow support to students with a wide range of abilities, and ensure access to challenging curricula and instruction for children at risk of school failure.
(12)	Use of technologies to support challenging State and local educational performance goals.
(13)	Effective and integrated use of technologies compatible with (i) the standard course of study, (ii) the State assessment program, and (iii) related student data management.
(14)	Use of technologies as a communication, instructional, and management tool and for problem-solving, exploration, and advanced skills.
(15)	Proposals for addressing equipment needs for vocational education, Tech Prep, and science instruction.
(16)	Specifications for minimum components of local school system technology plans.
"§ 115C-102.6B.  Approval of State school technology plan.
(a)	The Commission shall present the State school technology plan it develops to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee for their comments prior to January 1, 1995.  At least every two years thereafter, the Commission shall develop any necessary modifications to the State school technology plan and present them to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee.
(b)	After presenting the plan or any proposed modifications to the plan to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee, the Commission shall submit the plan or any proposed modifications to (i) the Information Resources Management Commission for its approval of the technical components of the plan set out in G.S. 115C-102.6A(1) through (4), and (ii) the State Board of Education for its approval of the components of the plan set out in G.S. 115C-103.6A (5) through (16).
(c)	If no changes are made to the plan or the proposed modifications to the plan after the submission to the Information Resources Management Commission and the State Board of Education, the plan or the proposed modifications shall take effect upon approval by the Information Resources Management Commission and the State Board of Education.
If changes are made to the plan or the proposed modifications after the submission to the Information Resources Management Commission and the State Board of Education, the plan or the proposed modifications shall take effect after the Commission (i)	reports the changes to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee, and (ii) considers the comments of the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee.
"§ 115C-102.6C.  Approval of local school system technology plans.
(a)	Each local board of education shall develop a local school system technology plan that meets the requirements of the State school technology plan.  In developing a local school system technology plan, a local board of education is encouraged to coordinate its planning with other agencies of State and local government, including other local school administrative units.  The Information Resources Management Commission shall assist the local boards of education in developing the parts of the plan related to its technological aspects, and the Department of Public Instruction shall assist the local boards of education in developing the instructional aspects of the plan.
Each local board of education shall submit the local plan it develops to the Information Resources Management Commission for its approval of the parts of the plan related to its technological aspects and to the Department of Public Instruction for its review of the instructional aspects of the plan. The Department of Public Instruction shall evaluate the local plans for the State Board and recommend to the State Board whether the local plans comply with the requirements of the State school technology plan not subject to the approval of the Information Resources Management Commission and should therefore be approved by the State Board of Education.
(b)	After a local school system technology plan is approved by the Information Resources Management Commission and the State Board of Education, all State funds spent by the local board of education for any aspect of school technology shall be used to implement the local school system technology plan.
(c)	After a local school system technology plan is approved by the Information Resources Management Commission and the State Board of Education, the local board of education may use funds in the State School Technology Fund that are allocated to the local school administrative unit to implement the plan.
"§ 115C-102.6D.  Establishment of the State School Technology Fund; allocation and use of funds.
(a)	There is established under the control and direction of the State Board of Education the State School Technology Fund.  This fund shall be a nonreverting special revenue fund consisting of any monies appropriated to it by the General Assembly.
(b)	Funds in the State School Technology Fund shall be allocated to local school administrative units as directed by the General Assembly.  Funds allocated to each local school administrative unit shall be credited with interest by the State Treasurer pursuant to G.S. 147-69.2 and G.S. 147-69.3.
(c)	Each local school administrative unit with a local school system technology plan approved by the State Board of Education may use funds allocated to it to implement its local plan or as otherwise specified by the General Assembly."
(e)  G.S. 115C-102.7 reads as rewritten:
"§ 115C-102.7.  Monitoring and evaluation of State and local school system technology plans; reports.
(a)	The Commission shall monitor and evaluate the development and implementation of the State and local school technology plans.  The evaluation shall consider the effects of technology on student learning, the effects of technology on students' workforce readiness, the effects of technology on teacher productivity, and the cost-effectiveness of the technology.  The Commission shall report in October of each year to the State Board of Education, the Joint Legislative Commission on Governmental Operations, and the Joint Legislative Education Oversight Committee on the development and the implementation of State and local school system technology plans.
	(a1)  The Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee may meet jointly to consider reports from the Commission on School Technology and they may appoint subcommittees to jointly consider the reports.
(b)	The Commission shall provide notice of meetings, copies of minutes, and periodic briefings to the chair of the Information Resources Management Commission and the chair of the Technical Committee of the Information Resources Management Commission."
(f)  The funds in the amount of one hundred thousand dollars ($100,000) appropriated to the Commission on School Technology in this act shall be used to complete the development of the State school technology plan, to develop a mechanism for monitoring and evaluation the State and local school system technology plans, and to otherwise carry out the duties of the Commission.
(g)  Funds in the amount of ten million dollars ($10,000,000) are appropriated to the School Technology Fund in this act.   Ninety percent (90%) of these funds shall be allocated to local school administrative units on the basis of average daily membership.  Ten percent (10%) of these funds shall be allocated on a per county basis.
Each local school administrative unit located in whole within the county shall receive a share of the funds allocated to the county on the basis of the average daily membership of the unit.  Each local school administrative unit located in part within the county shall receive a share of the funds allocated to a county on the basis of the average daily membership of the number of children in the unit who reside in that county.
Before a local school system technology plan is approved by the State Board of Education and the Information Resources Management Commission, a local board of education may use up to ten percent (10%) of the funds allocated to it from the Fund to develop its local school system technology plan or, to the extent that these funds are not needed to develop the local school system technology plan, for staff development to improve the use of instructional technology.  After a local school system technology plan is approved by the State Board of Education and the Information Resources Management Commission, a local board of education may use the remainder of these funds for nonrecurring expenses to implement its local school system technology plan, including staff development, equipment, hardware, software, and maintenance contracts.
Two or more local school administrative units may jointly expend funds to develop their individual local school system technology plans, for staff development, or to implement their individual local school system technology plans.
(h) Of the funds appropriated to the Office of the State Controller, Division of Information Resources Management, in this act, the sum of three hundred thousand dollars ($300,000) shall be used for three professional employee positions to be located in Raleigh, one clerical employee position to be located in Raleigh, six professional employee positions to be located in the Technical Assistance Centers of the Department of Public Instruction, and necessary office furniture, supplies, and equipment.  These employees shall respond to requests for advice from the State Board of Education and the Department of Public Instruction, assist local school administrative units in developing local school system technology plans, advise the Information Resources Management Commission concerning the approval of the technological aspects of the local school system technology plans, and assist local governments with regard to the use of technology.
(i)  Subsection (b) of this section becomes effective June 30, 1994.  G.S. 115C-102.6B, which is enacted in subsection (d) of this section, becomes effective November 1, 1994.  The remainder of this section becomes effective July 1, 1994.

Requested by:   Senator Perdue
TASK FORCE ON VOCATIONAL AND TECHNICAL EDUCATION
Sec. 39.  (a)	Task Force on Vocational and Technical  Education created membership. –  There is created the Task Force on Vocational and Technical Education.  The Task Force shall be located administratively in the Department of Public Instruction but shall exercise all its prescribed statutory powers independently of the Department of Public Instruction.
(b)	The Task Force shall consist of the following 11 members:
(1)	The State Superintendent of Public Instruction or a designee;
(2)	One representative of The University of North Carolina, appointed by the President of The University of North Carolina;
(3)	One representative of the North Carolina Community College System, appointed by the President of the North Carolina Community College System;
(4)	Two members appointed by the Governor;
(5)	Two members of the Senate appointed by the President Pro Tempore of the Senate, one of whom shall be designated by the President Pro Tempore of the Senate to serve as cochair;
(6)	One businessperson involved in vocational and technical education appointed by the President Pro Tempore of the Senate;
(7)	Two members of the House of Representatives appointed by the Speaker of the House of Representatives, one of whom shall be designated by the Speaker of the House of Representatives to serve as cochair; and
(8)	One vocational and technical education teacher appointed by the Speaker of the House of Representatives.
Vacancies in terms of members shall be filled by the appointing officers.
(c)	The Task Force, in consultation with the Department of Community Colleges, the Department of Public Instruction, and the Governor's Commission on Work Force Preparedness shall study the following issues related to vocational and technical education:
(1)	The quality and focus of vocational and technical education programs in the public schools, including the current status of local Tech Prep and apprenticeship programs in North Carolina;
(2)	Funding levels of programs, students served, and cost per student comparisons;
(3)	Program evaluation and current performance indicators, including employment outcomes;
(4)	Relationship of program focus to current and future labor market;
(5)	Linkage of programs to higher education, other governmental work force programs, and the business community;
(6)	Identification of duplication and overlapping of programs;
(7)	Current State agency staffing related to vocational and technical education;
(8)	Vocational and technical education curriculum and linkage to core academic areas;
(9)	Career counseling in the public schools; and
(10)	Current staff development and necessary changes in staff development.
The Task Force shall report the results of its study and its recommendations for modifications in vocational and technical  education to the Joint Education Oversight Committee and the State Board of Education prior to January 15, 1995.
(d)	Members of the Task Force who are also members of the General Assembly shall be paid subsistence and travel expenses at the rate set forth in G.S. 120-3.1.  Members of the Task Force who are officials or employees of the State shall receive travel allowances at the rate set forth in G.S. 138-6.  All other members of the Task Force shall be paid the per diem and allowances set forth in G.S. 138-5.
(e)  The Department of Public Instruction shall provide requested professional and clerical staff to the Task Force.  The Task Force may also employ professional and clerical staff and shall hire outside consultants to assist it in its work.
(f)  Of the funds appropriated to the Department of Public Instruction in this act, the sum of one hundred thousand dollars ($100,000) shall be used for the work of the Task Force on Vocational and Technical Education.

Requested by:   Senators Ward, Perdue, Lee, Winner, Smith, Warren.
NONCERTIFIED SCHOOL EMPLOYEE SALARIES
Sec. 40.  (a)	G.S. 115C-12(16) reads as rewritten:
"(16)	Power with Regard to Salary Schedules. – 
a.	Support personnel refers to all public school employees who are not required by statute or regulation to be certified in order to be employed.  The State Board of Education is authorized and empowered to adopt all necessary rules for full implementation of all schedules to the extent that State funds are made available for support personnel.
b.	Salary schedules for the following public school support personnel shall be adopted by the State Board of Education: school finance officer, office support personnel, teacher assistants, maintenance supervisors, custodial personnel, and transportation personnel. The Board shall classify these support positions in terms of uniform pay grades included in the salary schedule of the State Personnel Commission.
		By the end of the third payroll period of the 1995-96 fiscal year, local boards of education shall place State-allotted office support personnel, teacher assistants, and custodial personnel on the salary schedule adopted by the State Board of Education so that the average salary paid is the State-allotted amount for the category.  In placing employees on the salary schedule, the local board shall consider the education, training, and experience of each employee.  It is the intent of the General Assembly that a local school administrative unit not fail to employ an employee who was employed for the prior school year in order to implement the provisions of this sub-subdivision.  A local board of education is in compliance with this sub-subdivision if the average salary paid is at least ninety-five percent (95%) of the State-allotted amount for the category at the end of the third payroll period of the 1995-96 fiscal year, and at least ninety-eight percent (98%) of the State-allotted amount for the category at the end of the third payroll period of each subsequent fiscal year. The Department of Public Instruction shall provide technical assistance to local school administrative units regarding the implementation of this sub-subdivision.
				The State Board of Education shall report to the General Assembly, prior to March 31, 1995, and March 31, 1996, on the implementation of this sub-subdivision.
c.	Salary schedules for other support personnel, including but not limited to maintenance and school food service personnel, shall be adopted by the State Board of Education. The Board shall classify these support positions in terms of uniform pay grades included in the salary schedule of the State Personnel Commission. These schedules shall apply if the local board of education does not adopt a salary schedule of its own for personnel paid from other than State appropriations."
(b)	Beginning with the 1994-95 fiscal year, the State Board of Education shall allot salary funds for State-allotted school custodian positions on the basis of one thousand two hundred nine dollars ($1,209) a month for each position plus any salary increment authorized for school custodians by the General Assembly.

Requested by:   Senators Perdue, Lee, Ward, Winner, Smith, Warren, Hartsell
LOW-WEALTH AND SMALL SCHOOL SUPPLEMENTAL FUNDING CHANGES
Sec. 41.  (a)	Subsection (c) of Section 138 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(c)	Definitions. – As used in this section:
(1)	'Anticipated county property tax revenue availability' means the county adjusted property tax base multiplied by the effective State average tax rate.
(2)	'Anticipated total county revenue availability' means the sum of the
a.	Anticipated county property tax revenue availability,
b.	Local sales and use taxes received by the county that are levied under Chapter 1096 of the 1967 Session Laws or under Subchapter VIII of Chapter 105 of the General Statutes,
c.	Food stamp exemption reimbursement received by the county under G.S. 105-164.44C,
d.	Homestead exemption reimbursement received by the county under G.S. 105-277.1A,
e.	Inventory tax reimbursement received by the county under G.S. 105-275.1 and G.S. 105-277A,
f.	Intangibles tax distribution and reimbursement received by the county under G.S. 105-213 and G.S. 105-213.1, and
g.	Fines and forfeitures deposited in the county school fund
	for the most recent year for which data are available.
(3)	'Anticipated total county revenue availability per student' means the anticipated total county revenue availability for the county divided by the average daily membership of the county.
(4)	'Anticipated State average revenue availability per student' means the sum of all anticipated total county revenue availability divided by the average daily membership for the State.
(5)	'Average daily membership' means average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education.  If a county contains only part of a local school administrative unit, the average daily membership of that county includes all students who reside within the county and attend that local school administrative unit.
(6)	'County adjusted property tax base' shall be computed as follows:
a.	Subtract the present-use value of agricultural land, horticultural land, and forestland in the county, as defined in G.S. 105-277.2, from the total assessed real property valuation of the county,
b.	Adjust the resulting amount by multiplying by a weighted average of the three most recent annual sales assessment ratio studies,
c.	Add to the resulting amount the:
1.	Present-use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105-277.2,
2.	Value of property of public service companies, determined in accordance with Article 23 of Chapter 105 of the General Statutes, and
3.	Personal property value
	for the county.
(7)	'County adjusted property tax base per square mile' means the county adjusted property tax base divided by the number of square miles of land area in the county.
(8)	'County wealth as a percentage of State average wealth' shall be computed as follows:
a.	Compute the percentage that the county per capita income is of the State per capita income and weight the resulting percentage by a factor of five-tenths,
b.	Compute the percentage that the anticipated total county revenue availability per student is of the anticipated State average revenue availability per student and weight the resulting percentage by a factor of four-tenths,
c.	Compute the percentage that the county adjusted property tax base per square mile is of the State adjusted property tax base per square mile and weight the resulting percentage by a factor of one-tenth,
d.	Add the three weighted percentages to derive the county wealth as a percentage of the State average wealth. 
(9)	'Effective county tax rate' means the actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.
(10)	'Effective State average tax rate' means the average of effective county tax rates for all counties.
(10a)	'Local current expense funds' means the most recent county current expense appropriations to public schools, as reported by counties in the annual county financial information report to the State Treasurer.
(11)	'Per capita income' means the average for the most recent three years for which data are available of the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis, including any reported modifications for prior years as outlined in the most recent report.
(12)	'Sales assessment ratio studies' means sales assessment ratio studies performed by the Department of Revenue under G.S. 105-289(h).
(13)	'State average current expense appropriations per student' means the most recent State total of county current expense appropriations to public schools, as reported by counties in the annual county financial information report to the State Treasurer, divided by the total State average daily membership.
(14)	'State average adjusted property tax base per square mile' means the sum of the county adjusted property tax bases for all counties divided by the number of square miles of land area in the State.
(14a)	'Supplant' means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(15)	'Weighted average of the three most recent annual sales assessment ratio studies' means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available.  If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used.  If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used."
(b)	Subsection (d) of Section 138 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(d)	Eligibility for funds. – Except as provided in subsection (h) of this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than one hundred percent (100%)."
(c)	Subsection (h) of Section 138 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(h)	Nonsupplant requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. After July 1, 1994, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds.  Unless a county can show either (i) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section; or (ii) that it has remedied any deficiency, the State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if the average of the local per student current expense appropriation for the three most recent years is less than ninety-five percent (95%) of the greater of either (i) the local per student current expense appropriation for the 1991-92 fiscal year; or (ii) the average local per student current expense appropriation of the county for the three fiscal years immediately prior to the current year. The State Board of Education shall adopt rules to implement this section.
	."
(d)	Subsection (i) of Section 138 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(i)	Reports. – Counties that receive funds under this section shall report to the State Board of Education before March 1 each year on how they are using the funds for the fiscal year.  The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 1994, and May 1, 1995, and annually thereafter on how the funds are being used.  In its report the State Board shall analyze local appropriations and identify counties that supplant funds.
The Local Government Commission shall report on March 1, 1995, and annually thereafter on county appropriations to local school current expense funds to the State Board of Education and to the Appropriations Committees of the Senate and House of Representatives."
(e)  Section 138.1 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 138.1.  (a)	Funds for Small School Systems. – Except as provided in subsection (b) of this section, the State Board of Education shall allocate funds appropriated for small school system supplemental funding (i) to each county school administrative unit with an average daily membership of less than 3,000 students and (ii) to each county school administrative unit with an average daily membership of from 3,000 to 4,000 students if the county in which the local school administrative unit is located has a county adjusted property tax base per student that is below the State adjusted property tax base per student and if the total average daily membership of all local school administrative units located within the county is from 3,000 to 4,000 students.  The allocation formula shall:
(1)	Round all fractions of positions to the next whole position.
(2)	Provide five and one-half additional regular classroom teachers in counties in which the average daily membership per square mile is greater than four and seven additional regular classroom teachers in counties in which the average daily membership per square mile is four or less.
(3)	Provide additional program enhancement teachers adequate to offer the standard course of study.
(4)	Change the duty-free period allocation to one teacher assistant per 400 average daily membership.
(5)	Provide a base for the consolidated funds allotment of at least one hundred fifty thousand dollars ($150,000), excluding textbooks.
(6)	Allot vocational education funds for grade 6 as well as for grades 7-12.
If funds appropriated for each fiscal year for small school system supplemental funding are not adequate to fund fully the program, the State Board of Education shall reduce the amount allocated to each county school administrative unit on a pro rata basis.  This formula is solely a basis for distribution of supplemental funding for certain county school administrative units and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools.  The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for such county administrative units.
(b)	Nonsupplant requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. After July 1, 1994, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds.  Unless a county can show either (i) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section; or (ii) that it has remedied any deficiency, the State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if the average of the local per student current expense appropriation for the three most recent years is less than ninety-five percent (95%) of the greater of either (i) the local per student current expense appropriation for the 1991-92 fiscal year; or (ii) the average local per student current expense appropriation of the county for the three fiscal years immediately prior to the current year.  The State Board of Education shall adopt rules to implement this section.
(c)	Definitions. – As used in this section:
(1)	'Average daily membership' means within two percent (2%) of the average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education.
(2)	'County adjusted property tax base per student' means the total assessed property valuation for each county, adjusted using a weighted average of the three most recent annual sales assessment ratio studies, divided by the total number of students in average daily membership who reside within the county.
(2a)	'Local current expense funds' means the most recent county current expense appropriations to public schools, as reported by counties in the annual county financial information report to the State Treasurer.
(3)	'Sales assessment ratio studies' means sales assessment ratio studies performed by the Department of Revenue under G.S. 105-289(h).
(4)	'State adjusted property tax base per student' means the sum of all county adjusted property tax bases divided by the total number of students in average daily membership who reside within the State.
(4a)	'Supplant' means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(5)	'Weighted average of the three most recent annual sales assessment ratio studies' means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available.  If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used.  If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
(d)	Reports. – Counties that receive funds under this section shall report to the State Board of Education before March 1 each year on how they are using the funds for the fiscal year.  The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 1994, and May 1, 1995, and annually thereafter on how the funds are being used. In its report the State Board shall analyze local appropriations and identify counties that supplant funds.
The Local Government Commission shall report on March 1, 1995, and annually thereafter on county appropriations to local school current expense funds to the State Board of Education and to the Appropriations Committees of the Senate and House of Representatives."

Requested by:   Senator Ward
TRANSPORTATION INFORMATION MANAGEMENT SYSTEM FUNDS
Sec. 42.  Of the funds appropriated to Aid to Local School Administrative Units for school transportation in this act, the sum of five hundred ten thousand dollars ($510,000) for the 1994-95 fiscal year shall be used for the continuation of the Transportation Information Management System.  These funds shall be used for equipment, equipment maintenance, and contractual services to operate the program.
It is the intent of the General Assembly to include these funds in the continuation budget for the 1995-97 fiscal biennium.

Requested by:   Senator Ward
FUNDS FOR NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS
Sec. 43.  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.
Of the funds appropriated to the Department of Public Instruction in this act, the sum of five hundred thousand dollars ($500,000) for the 1994-95 fiscal year shall be used to pay for:
(1)	The National Board for Professional Teaching Standards (NBPTS) participation fee and for up to five days of approved paid leave for teachers participating in the NBPTS program during the 1994-95 school year for State-paid teachers who (i) 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 University of North Carolina prior to application for NBPTS certification, and (ii) who have not previously received State funds for participating in any certification area in the NBPTS program.  Teachers participating in the program shall take paid leave only with the approval of their supervisors.
		A teacher for whom the State pays the participation fee (i) who does not complete the process or (ii) who completes the process but does not teach in a North Carolina public school for at least one year after completing the process, shall repay the certification fee to the State.   Repayment is not required if the process in not completed or the teacher fails to teach for one year due to the death or disability of the teacher or other extenuating circumstances as may be recognized by the State Board.
(2)	A one-time five thousand dollar ($5,000) bonus for State-paid teachers who (i) 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 University of North Carolina prior to application for NBPTS certification and (ii) complete the certification process in 1993-94 and receive NBPTS certification in 1994-95.  
		A teacher who does not teach in a North Carolina public school for at least three years after receiving the bonus shall repay one-third of the five thousand dollar ($5,000) bonus to the State for each year not taught.   Repayment is not required if the teacher fails to teach for three years due to the death or disability of the teacher or other extenuating circumstances as may be recognized by the State Board.
The State Board of Education shall study incentive options for teachers who obtain NBPTS certification and the cost of those incentives.  The State Board shall also study the impact of NBPTS certification on student performance.  The State Board shall report the results of this study to the Joint Legislative Education Oversight Committee in December of 1994.

Requested by:   Senator Ward
TEACHER ACADEMY FUNDS
Sec. 44.  (a)	Funds appropriated in this act for the operation of the Teacher Academy for the 1994-95 fiscal year shall be used for Teacher Academy training sessions offered for the summer of 1994 and for sessions offered for the summer of 1995 prior to July 1, 1995.
(b)	The Task Force on Teacher Staff Development shall reconsider the Teacher Academy Plan it developed in accordance with Section 141 of Chapter 321 of the 1993 Session Laws and shall address more completely the factors it was directed to address by Section 141.  The Task Force shall report the modifications it makes to the Plan to the Joint Legislative Education Oversight Committee no later than January 1, 1995.

Requested by:   Senator Ward
OUTCOME-BASED EDUCATION FUNDS
Sec. 45.  Of the funds appropriated for the Outcome-Based Education Program in this act, the sum of one hundred thousand dollars ($100,000) shall be used by the Department of Public Instruction to provide technical assistance, evaluate programs, refine proficiencies and outcomes, and otherwise implement the program.

Requested by:   Senator Ward
DEVELOPMENTAL DAY CENTERS' GRANT-IN-AID
Sec. 46.  Section 216 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 216.  Of the funds appropriated in this act to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of two million three hundred one thousand two hundred forty-eight dollars ($2,301,248) for the 1993-94 fiscal year and the sum of two million three hundred one thousand two hundred forty-eight dollars ($2,301,248) for the 1994-95 fiscal year are transferred to the Department of Public Instruction for handicapped children aged 3 through 4 years who have been identified through Division of Mental Health, Developmental Disabilities, and Substance Abuse Services statewide services and who are served in developmental day centers.  These funds shall be used to contract with area mental health, developmental disabilities, and substance abuse authorities or with public or private nonprofit developmental day centers to continue to serve handicapped children aged 3 through 4 years who are identified as needing developmental day services.
It is the intent of the General Assembly to appropriate funds for this purpose to the continuation budget of the Department of Public Instruction for the 1995-97 fiscal biennium.
The Department of Public Instruction shall report to the General Assembly and to the Fiscal Research Division by May 1, 1994, and May 1, 1995, regarding the use of the funds transferred to it by this section."

Requested by:   Senators Ward, Warren
SUBSTITUTE TEACHER STUDY
Sec. 47.  The State Board of Education shall study issues concerning substitute teachers including substitute teacher pay, the qualifications and availability of substitute teachers throughout the State, and variations in the type and duration of substitute assignments.  The State Board shall report the results of its study to the Joint Legislative Education Oversight Committee no later than December 9, 1994.

Requested by:   Senator Ward
OUTWARD BOUND
Sec. 48.  Of the funds appropriated to the Department of Public Instruction, 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.

Requested by:   Senator Ward
TOTAL QUALITY EDUCATION
Sec. 49.  Of the funds appropriated to the Department of Public Instruction, 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, Inc.  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 shall be matched by State businesses, industries, and State/national foundations.

Requested by:   Senator Ward
JOBREADY/SCHOOL-TO-WORK DEMONSTRATION GRANTS
Sec. 50.  Of the funds appropriated to the State Board of Education in this act, the sum of one million dollars ($1,000,000) shall be used by the Governor's Commission on Work Force Preparedness to provide at least 10 grants up to one hundred thousand dollars ($100,000) each to JobReady 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 and, to the extent not inconsistent with the criteria required by the federal school-to-work initiative, shall reflect the geographical diversity of the State.  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 shall be incorporated into JobReady's implementation plan.

Requested by:   Senator Perdue
ADMINISTRATION OF THE INTERVENTION/PREVENTION GRANT PROGRAM
Sec. 51.1.  Of the funds allocated under Section 42 of Chapter 24 of the 1994 Session Laws for the Intervention/Prevention Grant Program, up to two hundred thousand dollars ($200,000) may be used by the Department of Public Instruction to implement that section.

Requested by:   Senators Ward, Winner of Mecklenburg
LIMITED ENGLISH PROFICIENCY (LEP) STUDENTS
Sec. 52.  (a)	G.S. 115C-81(c) reads as rewritten:
"(c)	Local boards of education shall provide for the efficient teaching at appropriate grade levels of all materials set forth in the standard course of study, including integrated instruction in the areas of citizenship in the United States of America, government of the State of North Carolina, government of the United States, fire prevention, the free enterprise system, the dangers of harmful or illegal drugs, including alcohol, and cardio-pulmonary resuscitation (CPR) and the Heimlich maneuver.
Except when a board authorizes teaching in a foreign language in order to comply with federal law, local boards of education shall require all teachers and principals to conduct classes except foreign language classes in English. Any teacher or principal who refuses to do so may be dismissed."
(b)	The State Board of Education shall study issues concerning Limited English Proficiency (LEP) students and shall develop a resource guide for local school administrative units that illustrates how to implement quality programs for LEP students.  The study shall review:
(1)	Federal requirements for LEP students;
(2)	The number of LEP students in the State and their geographic distribution across the State;
(3)	Methods for identifying LEP students;
(4)	Methods for assessing the abilities of LEP students in their home language;
(5)	Criteria for entrance into and exit from LEP programs;
(6)	Technical assistance needs of local school administrative units and the Department of Public Instruction;
(7)	Teacher training needs for regular classroom teachers and teachers in LEP programs;
(8)	Projections of the number of English as a Second Language or other LEP teachers needed in the future and the role of The University of North Carolina in meeting that need;
(9)	Certification criteria for teachers of LEP students;
(10)	Methods for assessing LEP children's needs for special education, including programs for academically gifted students;
(11)	Methods of instruction for LEP students including English as a Second Language Programs and transitional bilingual education;
(12)	Funding options for serving LEP students, including use of federal Migrant Education funds and other federal, State, and local funds for LEP students; and
(13)	Programs in the State that currently serve LEP students.
The resource guide shall identify State and local funding sources for these programs, how to obtain these funds, and methods for program evaluation. The State Board shall provide a copy of the resource guide, the results of its study, and its recommendations regarding issues concerning LEP students, to the Joint Legislative Education Oversight Committee no later than December 1, 1994.
(c)	If a local school administrative unit demonstrates that it has LEP students that it is unable to serve within the regular school allotments due to extraordinary circumstances, the State Board of Education may allocate funds from State Aid to Local School Administrative Units for the 1994-95 fiscal year to provide services to those students.  No more than one million dollars ($1,000,000) shall be allocated pursuant to this subsection for the 1994-95 fiscal year.

Requested by:   Senator Ward
EXCEPTIONAL CHILDREN FUNDS
Sec. 53.1. (a) Section 134(a) of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(a)	The funds appropriated for exceptional children in this act shall be allocated as follows:
(1)	Each local school administrative unit shall receive for academically gifted children the sum of $652.17 per child for three and nine-tenths percent (3.9%) of the 1993-94 actual average daily membership in the local school administrative unit, regardless of the number of children identified as academically gifted in the local school administrative unit. The total number of children for which funds shall be allocated pursuant to this subdivision is 43,739 for the 1994-95 school year.
(2)	Each local school administrative unit shall receive for exceptional children other than academically gifted children the sum of $1,956.52 per child for the lesser of (i) all children who are identified as exceptional children other than academically gifted children or (ii) twelve and five-tenths percent (12.5)% of the 1993-94 actual average daily membership in the local school administrative unit. The maximum number of children for which funds shall be allocated pursuant to this subdivision is 127,668 for the 1994-95 school year.
(3)	Each local school administrative unit in which more than twelve and five-tenths percent (12.5%) of the 1993-94 actual average daily membership are identified as exceptional children other than academically gifted children shall receive $418.76 per child in excess of the twelve and five-tenths percent (12.5%).  These funds shall be used only for nonrecurring expenditures and other expenditures for exceptional children other than academically gifted children that do not impose future obligations on the State or local governments.
The dollar amounts allocated under subdivisions (1) and (2) of this subsection for exceptional children shall also increase in accordance with legislative salary increments for personnel who serve exceptional children."
(b) Section 134(d) of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(d)	The State Board of Education shall report its preliminary recommendations, including any proposals for modified laws, rules, or policies and findings under subsections (b) and (c) of this section to the Commission on Children with Special Needs and to the chairs of the appropriations committees and the appropriations subcommittees on education of the Senate and the House of Representatives by March 15, 1994, and its final recommendations by January 1, 1995.."
(c) Of the funds appropriated for increases in average daily membership for the 1994-95 fiscal year, the sum of one million two hundred twenty-nine thousand four hundred seventy-two dollars ($1,229,472) shall be used for the recurring costs of implementing subsection (a) of this section.

PART 19.  DEPARTMENT OF TRANSPORTATION

Requested by:   Senator Lee
BRANCH AGENT TRANSACTION RATE
Sec. 54.  Section 155 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 155.  The Division of Motor Vehicles of the Department of Transportation shall compensate a contractor with whom it has a contract under G.S. 20-63(h)	at the rate of one dollar ($1.00) for each transaction performed in accordance with the requirements set by the Division.  A transaction is any of the following activities:
(1)	Issuance of a registration plate, a registration card, a registration renewal sticker, or a certificate of title.
(2)	Issuance of a handicapped placard or handicapped identification card.
(3)	Acceptance of an application for a personalized registration plate.
(4)	Acceptance of a surrendered registration plate, registration card, or registration renewal sticker, or acceptance of an affidavit stating why a person cannot surrender a registration plate, registration card, or registration renewal sticker.
(5)	Cancellation of a title because the vehicle has been junked.
(6)	Acceptance of an application for, or issuance of, a refund for a fee or a tax, other than the highway use tax.
(7)	Receipt of the civil penalty imposed by G.S. 20-309 for a lapse in financial responsibility or receipt of the restoration fee imposed by that statute.
(8)	Acceptance of a notice of failure to maintain financial responsibility for a motor vehicle.
(9)	Collection of the highway use tax.
Performance at the same time of any combination of the items that are listed within each subdivision or are listed within subdivisions (1)	through (8) of this section is a single transaction.  Performance of the item listed in subdivision (9) of this section in combination with any other items listed in this section is a separate transaction."

Requested by:   Senator Lee
FERRY ACQUISITIONS
Sec. 55.  Before approving the purchase of a ferry in a Transportation Improvement Program, for addition to the fleet or as a replacement for an existing ship in the fleet, the Board of Transportation shall prepare an estimate of any additional operational costs or any additional capital costs associated with the new ship and shall report those additional costs to the General Assembly pursuant to G.S. 136-12(b).

Requested by:   Senator Lee
DIVISION OF MOTOR VEHICLES TO REPORT ON EMISSION INSPECTION PROGRAM
Sec. 56.  The Division of Motor Vehicles shall report quarterly, beginning in January 1995, to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division, on the Emission Inspection Program's compliance with regulations the Environmental Protection Agency adopted for the inspection and maintenance activities required in the Clean Air Amendments of 1990.  The report shall include the receipts and expenditures from the Emissions Program Account.

Requested by:   Senator Speed
REVIEW OF RIGHT-OF-WAY MOWING CONTRACTS
Sec. 57.  The Department of Transportation shall audit all contracts for mowing rights-of-way by non-Department personnel to determine whether the contractors are complying with the contract requirements.  Not later than September 30, 1994, the Department shall report the results of this audit to the Joint Legislative Transportation Oversight Committee along with recommendations on the nonrenewal and cancellation of contracts when contractors are not meeting contract requirements.

Requested by:   Senator Plyler
SIGNING OF STATE MAINTAINED COUNTY ROADS
Sec. 57.1.  Five hundred thousand dollars ($500,000) of the funds to be allocated pursuant to G.S. 136-44.2A for secondary road construction during the 1994-95 fiscal year shall be exempt from the county formula allocation in G.S. 136-44.5.  The Department of Transportation shall utilize the funds so excluded for the signing of State maintained county roads in the 17 counties where signing has not already been funded.

PART 20.  DEPARTMENT OF CORRECTION

Requested by:   Senators Odom, Ballance
CORRECTION ENTERPRISES PREFERENCE
Sec. 58.  The Department of Administration, Division of Purchase and Contracts, shall prepare a written explanation of the purchasing procedures that State agencies and departments must follow in giving a preference to Correction Enterprises products pursuant to G.S. 148-70.  The explanation shall be for distribution to all State agencies and departments.
The Department shall provide a report on the explanation prepared pursuant to this section and on goods purchased from Correction Enterprises by State agencies and departments to the Joint Legislative Commission on Governmental Operations and to the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety by August 1, 1994.  The Department shall also provide a report on goods purchased from Correction Enterprises by State agencies and departments to the Joint Legislative Commission on Governmental Operations and to the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety by January 1, 1995.

Requested by:   Senators Odom, Ballance
RESERVE FOR PRISON CAPACITY INCREASE
Sec. 59.  Of the funds appropriated from the General Fund to the Department of Correction for the 1994-95 fiscal year, a reserve of eight million seven hundred forty-eight thousand nine hundred ten dollars ($8,748,910) shall be used to add 2,074 beds at prison units covered by the Small v. Martin lawsuit.  In the event that the Small v. Martin lawsuit is not modified to allow less than 50 square feet per inmate, the reserve may not be expended.

Requested by:   Senators Odom, Ballance
SUBSTANCE ABUSE FUNDS SHALL NOT REVERT
Sec. 60. The balance of the two hundred thousand dollars ($200,000) appropriated in Chapter 321 of the 1993 Session Laws to the Department of Correction for the 1993-94 fiscal year for a pilot community-based treatment program for alcohol and drug abusers on probation and parole shall not revert at the end of the fiscal year but shall remain in the Department for that purpose.

Requested by:   Senators Odom, Ballance, Lee, Marshall
PRISON PROFITS TO VICTIMS COMPENSATION FUND
Sec. 61.  (a) G.S. 148-2 reads as rewritten:
"§ 148-2.  Prison moneys and earnings.
(a)	Persons authorized to collect or receive the moneys and earnings of the State prison system shall enter into bonds payable to the State of North Carolina in penal sums and with security approved by the Department of Correction, conditioned upon the faithful performance by these persons of their duties in collecting, receiving, and paying over prison moneys and earnings to the State Treasurer. Only corporate security with sureties licensed to do business in North Carolina shall be accepted.
(b)	All revenues from the sale of articles and commodities manufactured or produced by prison enterprises shall be deposited with the State Treasurer to be kept and maintained as a special revolving working-capital fund designated 'Prison Enterprises Fund.' Revenue in the Prison Enterprises Fund shall be applied first to capital and operating expenditures, including salaries and wages of supervisory personnel, necessary to develop and operate prison industrial and forestry enterprises to provide diversified employment for prisoners, and incentive wages for non-Prison Enterprises Inmates.  Of the remaining revenue in the Fund, five percent (5%) of the net profits, before expansion costs, shall be credited to the Crime Victims Compensation Fund established in G.S. 15B-23 as soon as practicable after profits have been determined for the previous year, and at the direction of the Governor, the remainder shall be used for other purposes within the State prison system or shall be transferred to the General Fund.  The provisions of this section shall not apply to revenues generated from private prison enterprises conducted pursuant to G.S. 148-70 except for lease and rental income.
(c)	Notwithstanding G.S. 147-77, Article 6A of Chapter 147 of the General Statutes, or any other provision of law, the Department of Correction may deposit revenue from prison canteens in local banks. The profits from prison canteens shall be deposited with the State Treasurer on a monthly basis in a fund denominated as the Correction Inmate Welfare Fund.  Once the operating budget for the Correction Inmate Welfare Fund has been met, an amount equal to the funds allocated to each prison unit on a per inmate per year basis shall be credited to the Crime Victims Compensation Fund established in G.S 15B-23 as soon as practicable after the total amount paid to each unit per inmate per year has been determined."
(b)	G.S. 15B-23 reads as rewritten:
"§ 15B-23.  Crime Victims Compensation Fund.
There is established the Crime Victims Compensation Fund.  Revenue in the Crime Victims Compensation Fund includes amounts credited to the Fund under G.S. 148-2 and other funds.  Any surplus in the Crime Victims Compensation Fund shall not revert.  The Crime Victims Compensation Fund shall be kept on deposit with the State Treasurer, as in the case of other State funds, and may be invested by the State Treasurer in any lawful security for the investment of State money.  The Crime Victims Compensation Fund is subject to the oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes."

Requested by:   Senators Odom, Ballance
DEPARTMENT OF CORRECTION RESERVE FOR SUBSTANCE ABUSE TREATMENT PILOT PROGRAM FOR PAROLEES AND PROBATIONERS
Sec. 62.  (a)	Of the funds appropriated to the Department of Correction for the 1994-95 fiscal year, the sum of five hundred eighty-three thousand dollars ($583,000) shall be used to establish two positions and to cover associated expenses, including equipment.  Of this amount, the sum of four hundred eighty-five thousand eight hundred thirty-four dollars ($485,834) shall be used to contract with providers of services to parolees and probationers with serious substance abuse histories.
(b) The Department of Correction shall report on the implementation of this pilot program and the expected cost for the 1995-96 fiscal year and future fiscal years to the Joint Legislative Commission on Governmental Operations, the Chairs of the Senate and House Appropriations Committees, the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety, and the Fiscal Research Division of the Legislative Services Office by January 15, 1995.

Requested by:   Senators Odom, Ballance
DEPARTMENT OF CORRECTION WAREHOUSE REPORT
Sec. 63.  The Department of Correction shall determine the most centralized, feasible location for a warehouse for the Department, based upon the distribution of warehouse goods to State correctional facilities, the availability of State-owned land, and the cost of leasing, purchasing, or constructing a warehouse.  The Department shall report to the Joint Legislative Commission on Governmental Operations as soon as the determination has been made.

Requested by:   Senators Odom, Ballance
HARRIET'S HOUSE FUNDS
Sec. 64.  Of the funds appropriated from the General Fund to the Department of Correction for the 1994-95 fiscal year, the sum of three hundred thousand dollars ($300,000) shall be used to support the programs at Harriet's House, a transitional home for female ex-offenders and their children.  Harriet's House shall report quarterly to the Joint Legislative Commission on Governmental Operations on the expenditure of State appropriations and on the effectiveness of the program, including information on the number of clients served and the number of clients who successfully complete the Harriet's House program.

Requested by:  Senator Marshall
DEPARTMENT OF CORRECTION PAY LOCAL CONFINEMENT COST OF OFFENDER HELD IN CONTEMPT FOR PROBATION VIOLATION
Sec. 65.  G.S. 15A-1344(e1), as enacted by Section 2 of Chapter 19 of the Session Laws of the 1994 Extra Session, reads as rewritten:
"(e1)	Criminal Contempt in Response to Violation. – If a defendant willfully violates a condition of probation, the court may hold the defendant in criminal contempt as provided in Article 1 of Chapter 5A of the General Statutes.  A finding of criminal contempt by the court shall not revoke the probation.  If the offender serves a sentence for contempt in a local confinement facility, the Department of Correction shall pay for the confinement at the standard rate set by the General Assembly pursuant to G.S. 148-32.1(a) regardless of whether the offender would be eligible under the terms of that subsection."

Requested by:   Senators Odom and Ballance
YOUTH EXPERIENCE IN PRISON STUDY FUNDS
Sec. 65.1.  Of the funds appropriated from the General Fund to the Department of Correction for the 1994-95 fiscal year, the sum of fifty thousand dollars ($50,000) shall be used to study and develop a program in which youths ages 10 through 18 can visit prison facilities and gain an understanding of life as an inmate incarcerated in the State prison system.  The Department shall report on the program developed and plans for implementing it to the Joint Legislative Commission on Governmental Operations and the Chairs of the Senate and House Appropriations Subcommittees on Justice and Public Safety by March 15, 1995.

PART 21.  DEPARTMENT OF CRIME CONTROL AND PUBLIC SAFETY

Requested by:   Senators Odom, Ballance
CONTINUE DRUG COURT FUNDING
Sec. 66.  The Department of Crime Control and Public Safety, Governor's Crime Commission, shall allocate from federal Drug Control and Systems Improvement Grant Program funds the sum of two hundred thirty-one thousand three hundred thirty-four dollars ($231,334) to the Judicial Department and the sum of eight thousand seven hundred fifty dollars ($8,750) to the Department of Correction to continue funding the Felony Drug Court Program and Project Follow Through grant programs through June 30, 1995, provided that these funds are matched by sixty thousand twenty-one dollars ($60,021) in local funds.  Current funding of these grant programs expires March 31, 1995.

PART 22.  DEPARTMENT OF JUSTICE

Requested by:   Senators Odom, Ballance
USE OF SEIZED AND FORFEITED PROPERTY TRANSFERRED TO STATE LAW ENFORCEMENT AGENCIES BY THE FEDERAL GOVERNMENT
Sec. 67.  Section 204 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 204.  (a)	Assets transferred to the Department of Justice during the 1993-95 biennium pursuant to 19 U.S.C. § 1616a shall be credited to the budget of that Department and shall result in an increase of law enforcement resources for the Department.  Assets transferred to the Department of Crime Control and Public Safety during the 1993-95 biennium pursuant to 19 U.S.C. § 1616a shall be credited to the budget of that Department and shall result in an increase of law enforcement resources for the Department.  The Departments shall report to the Joint Legislative Commission on Governmental Operations upon the receipt of these assets and, before using these assets, shall report the intended use of these assets and the departmental priorities on which the assets may be expended.
	The General Assembly finds that the use of these assets for new personnel positions, new projects, the acquisition of real property, repair of buildings where such repair includes structural change, and construction of or additions to buildings may result in additional expenses for the State in future fiscal periods; therefore, the Department of Justice and the Department of Crime Control and Public Safety are prohibited from using these assets for such purposes without the prior approval of the General Assembly, except that during the 1993-95 biennium:
(1)	The Department of Crime Control and Public Safety may use an amount not to exceed one hundred seventeen thousand one hundred dollars ($117,100) of these assets for the purpose of building a helicopter hangar; and
(2)	The Department of Justice may use an amount not to exceed seventy five thousand dollars ($75,000) of these assets for the purpose of constructing a pistol range tower to house the computerized target system located at the Justice Academy.
(b)	This section does not apply to the extent that it prevents North Carolina law enforcement agencies from receiving funds from the United States Department of Justice pursuant to 19 U.S.C. § 1616a."

Requested by:  Senators Odom, Ballance
CENTRALIZED UTILIZATION OF LEGAL PUBLICATIONS
Sec. 68.  With the technical assistance of the Office of State Budget and Management, the Department of Justice shall conduct a cost analysis, formulate an implementation plan, and develop a funding recommendation for each of the following recommendations of the Office of State Budget and Management contained in the report of April 1994 on the Centralized Utilization of Legal Publications:
(1)	The use of legal publications available on CD ROM software and hardware; and
(2)	The feasibility of developing a legal resource and legal research network.
The Employment Security Commission, Industrial Commission, Department of Labor, Department of Revenue, State Library, SIPS, and any other State agency, department, or institution that maintains a legal library shall cooperate with the Department of Justice in the determination of the feasibility of developing a legal resource and legal research network.
The Department of Justice shall report by February 1, 1995, to the 1995 General Assembly its cost analysis, implementation plan, and funding recommendations by submitting a copy of the report to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Fiscal Research Division.

Requested by:  Senators Odom, Ballance
DEPARTMENT OF JUSTICE FEDERAL GRANT MATCHING FUNDS
Sec. 69.  (a)	Of the funds appropriated to the Department of Justice for the 1994-95 fiscal year, the sum of one hundred thousand five hundred ninety-seven dollars ($100,597) may be used to match federal grants for the following programs within the Civil Rights Division: Child Victim's Assistance Project, Drug Court Lead, Safe Neighborhoods Strategy; and Elder Abuse Prevention.  In the event that the Department of Justice does not receive federal grant funds for a specific grant, then the matching funds authorized by this section for that purpose shall not be expended.
(b)	Of the funds appropriated to the Department of Justice for the 1994-95 fiscal year, the sum of one hundred sixty-six thousand six hundred sixty-one dollars ($166,661) may be used by the State Bureau of Investigation to match federal funds for the purchase of a computerized system to match bullets and weapons.  In the event that the Department of Justice does not receive federal grant funds for this purpose, then the funds authorized by this section for matching purposes shall not be expended.

Requested by:   Senators Odom, Ballance, Conder
CAPITAL MURDER STUDY
Sec. 70.  The Department of Justice, in consultation with the Administrative Office of the Courts, shall study methods of reducing the costs and the length of time associated with capital murder cases, and shall report its findings and any recommendations to the 1995 General Assembly.

Requested by:   Senators Odom, Ballance
STATE BUREAU OF INVESTIGATION CRIMINAL RECORDS CHECKS RECEIPTS
Sec. 71.  The Department of Justice, State Bureau of Investigation, may use up to the sum of forty-six thousand six hundred seventeen dollars ($46,617) of the receipts received during the 1994-95 fiscal year for conducting State criminal records checks of school personnel for the purpose of funding positions and operating costs connected with conducting the State criminal records checks.

PART 23.  JUDICIAL DEPARTMENT

Requested by:   Senators Odom, Ballance
COMMUNITY PENALTIES PROGRAMS
Sec. 72.  (a)	Of the funds appropriated from the General Fund to the Judicial Department for the 1994-95 fiscal year to conduct the community penalties programs, the sum of three million five hundred thirteen thousand six hundred fifty-eight dollars ($3,513,658) may be allocated by the Judicial Department in any amount among existing community penalties programs, including any State-operated programs, or may be used to establish new State-operated community penalties programs, notwithstanding the provisions of G.S. 7A-771 and G.S. 7A-772.
(b)	The Judicial Department shall report annually to the Senate and House Appropriations Subcommittees on Justice and Public Safety and to the Fiscal Research Division on the administrative expenditures of the community penalties programs.

Requested by:   Senators Odom, Ballance
FORSYTH WARRANT CLERKS BECOME MAGISTRATES
Sec. 73.  (a)	The Administrative Office of the Courts may transfer 11 positions established within budget program fund 1260, "Clerk of Superior Court", in the certified budget for the 1993-95 biennium to budget program fund 1240, "District Court".  These 11 positions shall be deleted from the positions allocated to the office of the Clerk of Superior Court of Forsyth County pursuant to Section 9 of Chapter 881 of the 1983 Session Laws, and shall be added to the magistrate positions allocated to Forsyth County pursuant to G.S. 7A-171, but shall not increase the maximum number of magistrates authorized for Forsyth County in G.S. 7A-133.
(b)	Each magistrate position created in Forsyth County as a result of this section shall be filled pursuant to G.S. 7A-171 for an initial term ending December 31, 1994, as if a vacancy had occurred in the position on the effective date of this act.  A successor in each position shall be appointed as provided in G.S. 7A-171 for a full term beginning January 1, 1995.
(c)	The salary of each person who serves as a magistrate in Forsyth County in a position transferred pursuant to this section shall be determined under G.S. 7A-177.1, by including in the number of years the person has served as a magistrate, the number of years that the person has served as an assistant or Deputy Clerk of Superior Court for Forsyth County in a warrant clerk position.
(d)	From funds appropriated to the Judicial Department in the certified budget for the 1994-95 fiscal year, the Administrative Office of the Courts may transfer within its budget up to forty-one thousand four hundred fifty-nine dollars  ($41,459) to pay additional salary and benefits resulting from the enactment of this section.

Requested by:   Senators Odom, Ballance
STATE-RUN COMMUNITY PENALTIES PROGRAMS
Sec. 74.  The Director of the Administrative Office of the Courts may establish local community penalties programs, and appoint such staff as the Director deems necessary.  Such personnel may serve as full-time or part-time State employees or, alternatively, such activities may be provided on a contractual basis when determined appropriate by the Director.  Such contracts shall be exempt from competitive bidding procedures under Chapter 143 of the General Statutes.  The Administrative Office of the Courts shall promulgate rules necessary and appropriate for the administration of the program.  Funds appropriated by the General Assembly for the establishment and maintenance of community penalties programs under this Article shall be administered by the Administrative Office of the Courts.  Any contract entered into under the authority of this section shall expire not later than June 30, 1995.

Requested by:   Senators Odom, Ballance
EXTEND CERTAIN SPECIAL SUPERIOR COURT JUDGE TERMS
Sec. 75.  Notwithstanding G.S. 7A-45, G.S. 7A-45.1, Section 7 of Chapter 509 of the 1987 Session Laws, or any other provision of law, if any special superior court judge who is holding office on the effective date of this act first took office as an appointed or elected regular or special superior court judge in the calendar year 1986, the term of that judge is extended through December 31, 1998.

Requested by:   Senators Odom, Ballance
TRANSFER FUNDS FROM SPECIAL CAPITAL CASE REHEARING FUND TO THE INDIGENT PERSONS' ATTORNEY FEE FUND
Sec. 76.  Of the funds appropriated to the Judicial Department for the 1994-95 fiscal year, the sum of one million forty-eight thousand four hundred twenty-four dollars ($1,048,424) shall be transferred from the Special Capital Case Rehearing Fund, established in Section 2 of Chapter 742 of the 1991 Session Laws, to the Indigent Persons' Attorney Fee Fund to pay the obligations incurred by the Indigent Persons' Attorney Fee Fund.

Requested by:   Senators Odom, Ballance
PITT REGIONAL MEDIATION CENTER FUNDS
Sec. 77.  Section 220.2 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 200.2.  Of the funds appropriated to the Judicial Department from the General Fund for the 1993-95 biennium, the sum of forty thousand dollars ($40,000) for the 1993-94 fiscal year and the sum of forty thousand dollars ($40,000) for the 1994-95 fiscal year may be used for The Mediation Center of Pitt County, Inc., a dispute settlement center in Pitt County, to establish a regional mediation and dispute settlement center to serve Eastern North Carolina."

Requested by:   Senators Odom, Ballance, Marshall
EXTEND SENTENCING COMMISSION
Sec. 77.1. (a)	Section 8 of Chapter 1076 of the 1989 Session Laws, as amended by Chapters 812 and 816 of the 1991 Session Laws and Chapters 253 and 321 of the 1993 Session Laws, reads as rewritten:
"Sec. 8.  This act is effective upon ratification, and shall expire July 1, 1995."
(b)	G.S.  164-38 reads as rewritten:
"§ 164-38.  Terms of members; compensation; expenses.
The terms of existing members shall expire on June 30, 1995, unless they resign or are removed.  Members serving by virtue of elective or appointive office or as designees of such officeholders may serve only so long as the officeholders hold those respective offices.  Members appointed by the Speaker of the House and the President Pro Tempore of the Senate may be removed by the appointing authority without cause.  Vacancies occurring before the expiration of a term shall be filled in the manner provided for the members first appointed.  A member of the Commission may be removed only for disability, neglect of duty, incompetence, or malfeasance in office.  Before removal, the member is entitled to a hearing.  Effective with respect to members designated on or after July 1, 1992, a person making a designation pursuant to G.S. 164-37 may not make another designation, except that the person's successor in elective or appointive office may make a new designation.
The Commission members shall receive no salary for serving.  All Commission members shall receive necessary subsistence and travel expenses in accordance with the provisions of G.S. 120-3.1, 138-5, and 138-6 as applicable."
(c)	This section is effective upon ratification.

Requested by:   Senators Odom, Ballance, Daniel
CHILDREN'S LAW CENTER FUNDS
Sec. 77.2.  Of the funds appropriated from the General Fund to the Judicial Department, the sum of one hundred thousand dollars ($100,000) shall be used to assist the Children's Law Center, a private, non-profit corporation that provides comprehensive, quality legal representation and advocacy for children involved in court or administrative proceedings.

PART 24.  DEPARTMENT OF HUMAN RESOURCES

Requested by:   Senator Richardson
SERVICES FOR WILLIE M. CLASS MEMBERS RULES
Sec. 78.  (a)	Section 208 of Chapter 321 of the 1993 Session Laws is amended by adding the following new subsection to read:
"( j)	The Secretary of the Department of Human Resources shall adopt rules ensuring the continued provision of services  for disabled, violent, and assaultive children now known as Willie M. class members, which services shall be provided until (i) the children reach their 18th birthday, or (ii) if appropriately served, until the end of the fiscal year in which the children reach their 18th birthday or six months following the children's 18th birthday, whichever is longer.  The Department shall report to the 1995 General Assembly by May 1, 1995, on progress in adopting these rules and on the need for further statutory action by the General Assembly."
(b)	This section is effective upon ratification.

Requested by:   Senator Richardson
EMERGENCY ASSISTANCE CLARIFICATION
Sec. 79.  (a)	Effective June 30, 1994, G.S. 108A-39.1 reads as rewritten:
"§ 108A-39.1.  AFDC Emergency Assistance Program.
The Social Services Commission shall adopt rules to implement cash assistance and services components of the Aid to Families with Dependent Children-Emergency Assistance (AFDC-EA) Program. Effective November 1, 1986, the Department of Human Resources, Division of Social Services, shall provide cash assistance to families whose family income does not exceed one hundred ten percent (110%) of the current federal poverty level as established by the U. S. Secretary of Health and Human Services and published annually in the Federal Register. Annual cash assistance shall not exceed three hundred dollars ($300.00).  State appropriations made for the non-federal share of Emergency Assistance services and cash benefits shall not exceed a rate of fifty percent (50%) of the non-federal share.  For cash benefits authorized by any agency, the non-federal share of the benefit shall be paid at a rate of fifty percent (50%) State funds and fifty percent (50%) county or other local funds.  For cash benefits authorized by any State or local agency other than a county department of social services, the Department of Human Resources may assess the county for fifty percent (50%) of the non-federal share of cash benefits authorized.  For services benefits authorized by any agency, the non-federal share of the benefit shall be paid by that agency entirely from county appropriations or other available public or private funds.  Federal reimbursements earned through participation in this Program shall be paid to the participants in proportion to their payment of the non-federal share."
(b)	Section 232 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 232.  The Division of Social Services, Department of Human Resources, shall not expend more State funds than are appropriated for the cash assistance component of the Emergency Assistance Program by this act.  Within this limit, Emergency Assistance cash benefits shall not exceed three hundred dollars ($300.00) per year per family, payable over a 30-day period.  After this 30-day period, Emergency Assistance cash benefits are not available to that family until 12 months have elapsed from the initial authorization date.  The family may have no more than a total of three hundred dollars ($300.00) in liquid assets in order to qualify for the cash assistance component of the Emergency Assistance Program pursuant to this section.
It is the intent of the General Assembly that cash benefits under the Emergency Assistance Program shall only be used to provide assistance to persons to alleviate an emergency.  In evaluating whether an emergency exists, the agency receiving the application shall apply prudent judgment to evaluate each emergency on its own merits.  Prudent judgment will permit the agency to consider whether the client created the emergency and whether the assistance will resolve the emergency."

Requested by:   Senators Richardson, Winner of Mecklenburg
EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES LOCAL PARTNERSHIP FUNDING FOR ADMINISTRATIVE COSTS 
Sec. 81.  The Secretary of Human Resources may allow local partnerships receiving funds for Early Childhood Education and Development Initiatives to use up to five percent (5%) or up to one hundred thousand dollars ($100,000) of their total allocation, whichever is greater, to fund the staff and administrative support for local partnership board activities if the local partnership demonstrates that this additional administrative funding is needed.

Requested by:  Senators Richardson, Plexico, Winner of Mecklenburg
EARLY CHILDHOOD EDUCATION AND DEVELOPMENT INITIATIVES/AUDITING FUNDS
Sec. 81.1.  Of the funds appropriated in this act to the Department of Human Resources, Division of Child Development, for Early Childhood Education and Development Initiatives, for activities other than those that provide direct services, the sum of one hundred fifteen thousand dollars ($115,000) shall be transferred to the Office of State Auditor for two time-limited auditor positions for the performance of the audits required of the State Auditor by G.S. 143B-168.12(a) and (b).

Requested by:   Senator Richardson
MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES PROVIDERS/MEDICAID RECEIPTS
Sec. 82.  The Division of Mental Health, Developmental Disabilities, and Substance Abuse Services of the Department of Human Resources shall initiate efforts to enable service providers to realize additional Medicaid receipts for services provided through the Willie M. and Thomas S. programs and shall present the results of their efforts to the Human Resources Appropriations Subcommittees by March 1, 1995.

Requested by:   Senator Richardson
PRIVATE AGENCY UNIFORM COST FINDING REQUIREMENT
Sec. 83.  To ensure uniformity in rates charged to area programs and funded with State-allocated resources, the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services of the Department of Human Resources may require a private agency that provides services under contract with two or more area programs, except for hospital services that have an established Medicaid rate, to complete an agency-wide uniform cost finding in accordance with G.S. 122C-143.2(a) and G.S. 122C-147.2.  The resulting cost shall be the maximum included for the private agency in the contracting area program's unit cost finding.

Requested by:   Senator Richardson
PIONEER TESTING RULE WAIVER EXTENSION
Sec. 84.  Subsection (n) of Section 220 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(n)	Effective July 1, 1995, G.S. 122C-151.1 is repealed."

Requested by:   Senator Richardson
THOMAS S.
Sec. 85.  Section 209 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 209.  (a)	Funds appropriated to the Department of Human Resources in this act for the 1993-94 fiscal year and the 1994-95 fiscal year for members of the Thomas S. Class as identified in Thomas S., et al. v. Britt, formerly Thomas S., et al. v. Flaherty, shall be expended only for programs serving Thomas S. Class members or for services for those clients who are:
(1)	Adults with mental retardation, or who have been treated as if they had mental retardation, who were admitted to a State psychiatric hospital on or after March 22, 1984, and who are included on the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services' official list of prospective Class members;
(2)	Adults with mental retardation who have a documented history of State psychiatric hospital admissions regardless of admission date and who, without funding support, have a good probability of being readmitted to a State psychiatric hospital; 
(3)	Adults with mental retardation who have never been admitted to a State psychiatric hospital but who have a documented history of behavior determined to be of danger to self or others that results in referrals for inpatient psychiatric treatment and who, without funding support, have a good probability of being admitted to a State psychiatric hospital; or
(4)	Adults who are included on the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services' official list of prospective class members and have yet to be confirmed as class members, who currently reside in the community, and who have a good probability of being admitted to a facility licensed as a 'home for the aged and disabled'.
No more than five percent (5%) of the funds appropriated in this act for the Thomas S. program shall be used for clients meeting subdivisions (2), (3), or (4) of this subsection.
(b)	To ensure that Thomas S. Class members are appropriately served, no State funds shall be expended on placement and services for Thomas S. Class members except:
(1)	Funds specifically appropriated by the General Assembly for the placement and services of Thomas S. Class members; and
(2)	Funds for placement and services for which Thomas S. Class members are otherwise eligible.
(c)	The Department of Human Resources shall develop and implement during the 1993-94 fiscal year a prospective unit cost reimbursement system and shall ensure that unit cost rates reflect reasonable costs by conducting cost center service type rate comparisons and cost center line item budget reviews as may be necessary.
(d)	Reporting requirements.  The Department of Human Resources shall submit by April 1 of each fiscal year a report to the General Assembly on the progress achieved in serving members and prospective members of the Thomas S. Class.  The report shall include the following:
(1)	The number of Thomas S. clients confirmed as Class members;
(2)	The number of prospective Class members evaluated;
(3)	The number of prospective Class members awaiting evaluation;
(4)	The number of Class members or prospective class members added in the preceding 12 months due to their admission to a State psychiatric hospital;
(5)	A description of the types of treatment services provided to Class members; and
(6)	An analysis of the use of funds appropriated for the Class.
(e)	Notwithstanding any other provision of law, if the Department of Human Resources determines that a local program is not providing minimally adequate services to members of the Class identified in Thomas S., et al. v. Britt, formerly Thomas S., et al. v. Flaherty, or does not show a willingness to do so, the Department may ensure the provision of these services through contracts with public or private agencies or by direct operation by the Department of these programs."

Requested by:   Senator Richardson
USE OF DETENTION CENTER CONSTRUCTION RESERVE
Sec. 86.  The Department of Human Resources, Division of Youth Services, shall use the one million six hundred thousand dollars ($1,600,000) placed in a reserve for detention center construction in Section 67 of Chapter 24 of the Session Laws of the 1994 Extra Session, to construct a 24-bed detention center in Wake County.

Requested by:   Senator Richardson
DEVELOPMENT OF RATE-SETTING METHODOLOGY FOR DOMICILIARY CARE FACILITIES CONTINUED
Sec. 87.  The Department of Human Resources shall continue development of the rate-setting methodology for domiciliary care facilities proposed by the Department in the report made to the General Assembly in accordance with the requirements of Section 240 of Chapter 321 of the 1993 Session Laws. The final plan, including the recommended maximum payment rate for each category of facilities, shall be submitted to the 1995 General Assembly and to the Fiscal Research Division by February 1, 1995.

Requested by:   Senator Richardson
CHANGE IN PLANNING AND PILOT IMPLEMENTATION OF AN INTEGRATED FUNDING APPROACH FOR MENTAL HEALTH/SUBSTANCE ABUSE INSTITUTIONAL SERVICES
Sec. 88.  Section 218 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 218.  
	The Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall present a written report on a UNIFIED SYSTEM OF SERVICES to the Human Resources Appropriations Subcommittees by March 1, 1995.  The report shall describe the UNIFIED SYSTEM OF SERVICES using an integrated funding stream to provide a practical-needs-based approach to the use of limited resources within the Mental Health, Developmental Disabilities, and Substance Abuse Services System and shall include a proposal for a pilot test of the UNIFIED SYSTEM OF SERVICES in the North Central Region,including an estimation of the cost of implementing the pilot test.  The UNIFIED SYSTEM OF SERVICES shall focus on improvement to the quality and continuity of client care and shall include changes in budget or personnel policies or practices necessary to implement a unified system of services.  These changes shall be based on consultation with the Office of State Budget and Management and the Office of State Personnel."

Requested by:   Senator Richardson
1993 PROFESSIONAL COUNSELOR LICENSING ACT CORRECTION
Sec. 89.  Effective July 1, 1994, G.S. 90-332.1(a)(8) reads as rewritten:
"(8)	Any person performing counseling solely as an employee of an area facility, as defined in G.S. 122C-3(14)a., if both of the following apply:
a. 	The services are provided by (i) a qualified professional as defined in G.S. 122C-3(31) and subject to the rules adopted by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services or (ii) an employee supervised by a qualified professional as defined in G.S. 122C-3(31); and
b. 	The area facility has obtained written verification from the following boards that the employee has not had his or her license, registration, or certification revoked, rescinded, or suspended: the North Carolina Board of Licensed Professional Counselors, the North Carolina State Board of Examiners of Practicing Psychologists, the North Carolina Certification Board for Social Work, and the North Carolina Marital and Family Therapy Certification Board."

Requested by:   Senator Richardson
CHILD WELFARE SYSTEM STUDY
Sec. 90.  Of the funds appropriated in this act to the Department of Human Resources, Office of the Secretary, the sum of one hundred fifty thousand dollars ($150,000) shall be used to contract for an independent, outside consultant to conduct a comprehensive study of the child welfare system.  The study shall include the following:
(1)	A description of the current child welfare system;
(2)	An identification of the strengths and weaknesses of the current system;
(3)	A review of the current funding of the system, with emphasis on State and local responsibilities;
(4)	Recommendations on how to improve and refine the system, with emphasis on addressing the comprehensive needs of the children and families being served;
(5)	Options for future policy discussions, with emphasis on State and local funding responsibilities; and
(6)	Recommendations on the development of a statewide reporting system.
The Department shall report the results of this study to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division by February 15, 1995.

Requested by:   Senator Richardson
FOSTER CARE AND ADOPTIONS TRAINING
Sec. 91.  Funds appropriated to the Department of Human Resources, Division of Social Services, in this act, in the amount of one hundred eighty-one thousand two hundred seventy dollars ($181,270), shall be used to establish an in-house training component to provide a mandated minimum of 30 hours of preservice training for foster care parents and 84 hours for foster care workers and adoption care workers and a mandated minimum of 10 hours of continuing education for all foster care parents and 18 hours for foster care workers and adoption care workers.

Requested by:   Senators Richardson, Walker, Harris
MEDICAID COVERAGE FOR ELDERLY, BLIND, AND DISABLED
Sec. 92.  Effective January 1, 1995, the Department of Human Resources, Division of Medical Assistance, shall provide Medicaid coverage to all elderly, blind, and disabled people who receive Supplemental Security Income (SSI).

Requested by:   Senator Richardson
MEDICAID REPORTING REQUIREMENTS
Sec. 93.  The Department of Human Resources, Division of Medical Assistance, shall submit a monthly status report on expenditures for acute care and long-term care services to the Fiscal Research Division.  This report shall include an analysis of budgeted versus actual experience for eligibles by category and for long-term care beds.  In addition, the Department shall revise the program's projected spending for the current fiscal year and the estimated spending for the subsequent fiscal year on a quarterly basis.  Reports for the preceding month shall be forwarded to the Fiscal Research Division no later than the third Thursday of the month.

Requested by:   Senators Richardson, Walker, Harris
MEDICAID COVERAGE FOR ADOPTIVE CHILDREN WITH SPECIAL NEEDS
Sec. 94.  Effective October 1, 1994, the Department of Human Resources shall provide Medicaid coverage for adoptive children with special rehabilitative needs regardless of the adoptive family's income.

Requested by:   Senator Richardson
MEDICAID INPATIENT HOSPITAL REIMBURSEMENT CHANGE
Sec. 95.  Section 227 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 227.  Effective October 1, 1994, the Department of Human Resources, Division of Medical Assistance, shall implement a budget-neutral Diagnosis-Related Group reimbursement methodology for inpatient hospital services.  "

Requested by:   Senators Richardson, Walker, Harris
CHANGE IN MEDICAID COVERAGE TO PREGNANT WOMEN AND TO CHILDREN
Sec. 96.  Subsection (l) of Section 222 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(l)	The Department of Human Resources shall provide coverage to pregnant women and to children according to the following schedule:
(1)	Pregnant women with incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines, as revised each April 1 shall be covered for Medicaid benefits;
(2)	Infants under the age of 1 with family incomes equal to or less than one hundred eighty-five percent (185%) of the federal poverty guidelines as revised each April l, shall be covered for Medicaid benefits;
(3)	Children aged 1 through 5 with family incomes equal to or less than one hundred thirty-three percent (133%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits; and
(4)	Children aged 6 through 18 with family incomes equal or less than the federal poverty guidelines, as revised each April 1, shall be covered for Medicaid benefits."

Requested by:   Senator Richardson
NONSUPPLANTING OF MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE FUNDS
Sec. 97.  The Department of Human Resources shall ensure that counties do not reduce county appropriations and expenditures for area mental health, developmental disabilities, and substance abuse authorities because the authorities have received additional State appropriations for services.

Requested by:   Senator Richardson
ADOPTION SUBSIDY
Sec. 98.  Section 235 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 235.  (a)	The adoption subsidy paid monthly by the Division of Social Services, Department of Human Resources, to eligible families who adopt hard-to-place children shall be established at two hundred sixty-five dollars ($265.00) per child per month.
(b)	Effective October 1, 1994, 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:
(1)	$290.00 per child per month for children aged birth through 5;
(2)	$315.00 per child per month for children aged six through 12; and
(3)	$340.00 per child per month for children aged 13 through 18."

Requested by:   Senator Richardson
FOSTER CARE ASSESSMENT TOOL
Sec. 99.  Funds appropriated to the Department of Human Resources, Division of Social Services, in this act, in the amount of fifteen thousand one hundred sixty-seven dollars ($15,167) shall be used to purchase the Foster and Adoptive Recruitment and Retention, A Guide to Local Agency Assessment,an on-going assessment tool to be used to study, develop, and implement a statewide recruitment and retention plan.

Requested by:  Senator Richardson
DOMICILIARY CARE REIMBURSEMENT RATE INCREASE
Sec. 100.  Section 239 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 239.  (a)	Effective July 1, 1993, the maximum monthly rate for residents in domiciliary care facilities shall be nine hundred thirty-eight dollars ($938.00) for ambulatory residents and nine hundred seventy-nine dollars ($979.00) for semiambulatory residents.
(b)	Effective October 1, 1994, the maximum monthly rate for residents in domiciliary care facilities shall be nine hundred eighty-five dollars ($985.00) per month for ambulatory residents and one thousand twenty-eight dollars ($1,028) per month for semi-ambulatory residents."

Requested by:   Senator Richardson
FOSTER CARE
Sec. 101.  Section 231 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"Sec. 231.  (a)	Funds appropriated to the Department of Human Resources for foster care assistance rates shall be used to set the rates at two hundred sixty-five dollars ($265.00) per child per month.  Of this sum, fifteen dollars ($15.00 is a special needs allowance for the child.
(b)	Effective October 1, 1994, funds appropriated to the Department of Human Resources for foster care assistance rates shall be used to pay assistance on a graduated rate as follows:
(1)	$290.00 per child per month for children aged birth through 5;
(2)	$315.00 per child per month for children aged 6 through 12; and
(3)	$340.00 per child per month for children aged 13 through 18.
Of these amounts, fifteen dollars ($15.00) is a special needs allowance for the child."

Requested by:  Senator Marshall
MEDICAID ESTATE RECOVERY PLAN
Sec. 101.1.  (a)	Article 2 of Chapter 108A of the General Statutes is amended by adding a new section to read:
"§ 108A-70.5.  Medicaid Estate Recovery Plan.
(a)	There is established in the Department of Human Resources, the Medicaid Estate Recovery Plan, as required by the Omnibus Budget Reconciliation Act of 1993, to recover from the estates of recipients of medical assistance an equitable amount of the State and federal shares of the cost paid the recipient.  The Department shall administer the program in accordance with applicable federal law and regulations, including those under Title XIX of the Social Security Act, 42 USC 1396(p).
(b)	As used in this section:
(1)	'Medical assistance' means medical care services paid for by the North Carolina Medicaid Program on behalf of the recipient:
a.	If the recipient is receiving these medical care services as an inpatient in a nursing facility, intermediate care facility for the mentally retarded, or other medical institution and cannot reasonably be expected to be discharged to return home; or
b.	If a recipient is 55 years of age or older and is receiving these medical care services, including related hospital care and prescription drugs, for nursing facility services or home- and community-based services.
(2)	'Estate' means all the real and personal property considered assets of the estate available for the discharge of debt pursuant to G.S. 28A-15-1.
(c)	The amount the Department recovers from the estate of any recipient shall not exceed the amount of medical assistance made on behalf of the recipient and shall be recoverable only for medical care services prescribed in subsection (b) of this section.  The Department is a seventh-class creditor, as prescribed in G.S. 28A-19-6, for purposes of determining the order of claims against an estate.
(d)	The Department of Human Resources shall adopt rules pursuant to Chapter 150B of the General Statutes to implement the Plan, including rules to waive whole or partial recovery when this recovery would be inequitable because it would work an undue hardship or because it would not be administratively cost-effective and rules to ensure that all recipients are notified that their estates are subject to recovery at the time they become eligible to receive medical assistance."
(b)	Of the funds appropriated in this act from the General Fund to the Department of Human Resources, Division of Medical Assistance, the sum of one hundred four thousand seven hundred fifty dollars ($104,750) for the 1994-95 fiscal year, of which fifty thousand dollars ($50,000) is nonrecurring, shall be used to implement this section.
	(c)	Subsection (a) of this section becomes effective October 1, 1994, and applies to individuals who apply for medical assistance on or after that date.  The remainder of this section becomes effective July 1, 1994.

Requested by: Senator Hyde
MATERNITY HOME AND ADOPTION FUNDS
The General Assembly of North Carolina enacts:
Sec. 102.  (a)	From funds appropriated in this act to the Department of Human Resources, Division of Social Services, the sum of six hundred sixty-five thousand dollars ($665,000) for the 1994-95 fiscal year is allocated to the State Maternity Home Fund to provide maternity home services to single pregnant young women 10 years of age and older for the purposes of protecting and enhancing maternal and child health, reducing infant mortality and morbidity, reducing the number of unintended second pregnancies, preventing mothers from permanently dropping out of school, preventing welfare dependency, and providing adoption and parenting support.
(b) From funds appropriated in this act to the Department of Human Resources, Division of Social Services, the sum of seven hundred fifty thousand dollars ($750,000) for the 1994-95 fiscal year is allocated to the Children's Home Society of North Carolina, Inc., for the purposes of recruiting and training families to adopt children with special needs and of providing postadoption and support services for these families and children.  Children with special needs include medically fragile infants and children, sibling groups, abused, neglected, and abandoned infants and children, HIV-positive infants and children, addicted infants, children with behavior problems and emotional disorders, minority infants and children, and older children.

Requested by:   Senators Richardson, Walker, Harris
COALITION 2001 FUNDS
Sec. 102.1.  The sum of ten million dollars ($10,000,000) appropriated in this act to the Department of Human Resources, Division of Mental Health, Mental Retardation, and Substance Abuse Services for the capital needs of mental health, developmental disabilities, and substance abuse services recommended by Coalition 2001 shall be allocated as follows:
(1)	$6,000,000 for community area mental health, developmental disabilities, and substance abuse services capital needs.
		No area program shall receive more than ten percent (10%) of the total funds appropriated in this fiscal year for area program capital needs.
		At least ten percent (10%) of the capital funds shall be awarded by the Department of Human Resources to area programs for projects in counties that fall within the last quartile of either per capita income, according to the most recent North Carolina Data System Rankings or of property valuation, according to the most recent North Carolina Department of Revenue rankings.  The Department shall not require a local match for these counties.  The Department shall require a dollar-for-dollar local match for capital funds awarded for projects in all other counties.  Capital in-kind contributions from area programs or counties shall be considered in meeting the local matching requirement.  The Department shall determine acceptable requirements for determining sources of allowable matching funds, whether cash or in-kind.
		All area program capital grants are subject to the Department of Human Resources' approval of the grant application;
(2)	$1,700,000 for construction and renovation of Developmental Day Centers;
(3)	$1,000,000 for construction and renovation of vocational rehabilitation facilities;
(4)	$200,000 for implementation of three community rehabilitation pilot projects to be selected by the North Carolina Association of Rehabilitation Facilities;
(5)	$400,000 for supported living projects of the Association for Retarded Citizens and United Cerebral Palsy, Inc.; and
(6)	$700,000  for local assistive technology and a housing loaner fund to be administered through the Community Living Association.

Requested by: Senator Daniel 
DOMICILIARY HOMES/STAFFING ISSUES
Sec. 102.2.  The Department of Human Resources shall study the fiscal impact for all Homes for the Aged and Family Care Homes for appropriate staffing, staff turnover ratios, wages and benefits, staff training, and abilities for facilities to operate within existing State and federal law and regulations, according to size and type of facility.
The Department shall submit a report of its findings to the 1995 General Assembly and to the Fiscal Research Division of the Legislative Services Office by February 1, 1995.

PART 25.  DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL
RESOURCES

Requested by: Senator Martin of Pitt 
IMMUNIZATION PROGRAM FUNDING
Sec. 103.  Section 109 of Chapter 561 of the 1993 Session Laws reads as rewritten:
  "(a)	Of the funds appropriated in Chapter 321 of the 1993 Session Laws from the General Fund to the Department of Environment, Health, and Natural Resources for the 1994-95 fiscal year for childhood immunization programs for positions, operating support, equipment, and pharmaceuticals, the sum of up to one million dollars ($1,000,000) may be used for projects and activities that are also designed to increase childhood immunization rates in North Carolina.  These projects and activities shall include the following:
(1)	Outreach efforts at the State and local levels to improve service delivery of vaccines.  Outreach efforts may include educational seminars, media advertising, support services to parents to enable children to be transported to clinics, longer operating hours for clinics, and mobile vaccine units; and
(2)	Continued development of an automated immunization registry.
(b)	Funds authorized to be used for immunization efforts under subsection (a) of this section shall not be used to fund additional State positions in the Department of Environment, Health, and Natural Resources.
(c)	The Department of Environment, Health, and Natural Resources shall not obligate or expend funds authorized for the purposes stated in subsection (a) of this section until the Department has prepared and submitted for review to the Joint Legislative Commission on Governmental Operations the eight-year plan for implementation of the statewide immunization program required under Section 287 of Chapter 321 of the 1993 Session Laws.  In addition to the requirements of Section 287 of Chapter 321 of the 1993 Session Laws, the eight-year plan shall address planned expenditures and immunization projects and activities identified under subsection (a) of this section."

Requested by: Senator Martin of Pitt
BLUE RIBBON ADVISORY COUNCIL ON OYSTERS
Sec. 104.  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, the sum of up to one hundred thousand dollars ($100,000) for the 1994-95 fiscal year shall be used for administrative support and other expenses incurred by the Blue Ribbon Advisory Council on Oysters in carrying out the Council's purposes.  The Department may use these funds for the purposes stated in this section only if Senate Bill 1403 is enacted by the 1993 General Assembly.

Requested by: Senator Martin of Pitt 
FISHERIES DATA INFORMATION SYSTEM
Sec. 105.  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, the sum of two hundred thousand dollars ($200,000) may be used for administrative expenses for the fisheries data information system pursuant to G.S. 113-154.1.  Funds may be used for the purposes authorized under this section only if Senate Bill 1435 is enacted by the 1993 General Assembly.

Requested by: Senator Martin of Pitt
FISHERY RESOURCE GRANT PROGRAM
Sec. 106.  (a) Creation.  There is created within the Department of Environment, Health, and Natural Resources, the Fishery Resource Grant Program.  The purpose of the program is to enhance the State's coastal fishery resources through individual grants to test new equipment, research industry trends, perform environmental pilot studies, and study other fishery issues.
(b)	Administration.  The Marine Fisheries Commission shall administer the Fishery Resource Grant Program, provide technical assistance to grant applicants and recipients, select grant recipients, evaluate pilot programs, and develop guidelines for implementing successful grant programs.  Grants shall be evenly distributed among the Northern, Southern, Central, and Pamlico coastal regions.
(c)	Application procedure.  An applicant may apply for grant funds to the Secretary of the Department of Environment, Health, and Natural Resources.  An application must include, but is not limited to, the following:
(1)	A description of the project;
(2)	A detailed statement of the projected costs of the project including the cost to plan and design the project;
(3)	An explanation of how the project will enhance the fishery resource; and
(4)	Any other information needed by the Secretary of the Department to enable the Secretary to make a decision on the application.
(d)	Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, the sum of one million dollars ($1,000,000) for the 1994-95 fiscal year shall be allocated for the Fishery Resource Grant Program established under this section.  Funds appropriated for the purposes of this section shall be contingent upon the enactment of Senate Bill 1436.

Requested by: Senator Martin of Pitt 
EHNR/LOCAL CRAB FISHERIES RESEARCH OFFICE
Sec. 107.  Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources, the sum of two hundred thirty-three thousand four hundred forty-one dollars ($233,441) for the 1994-95 fiscal year may be used for the creation of an office in Tyrrell County to perform research and technical assistance with respect to the crab fishery.  Funds for the purposes stated in this section may be allocated only if Senate Bill 1436 is enacted.

Requested by:   Senator Martin of Pitt
REGIONAL STATE PARK STUDY 
Sec. 107.1.  Of the funds appropriated to the Department of Environment, Health, and Natural Resources in this act, the sum of fifteen thousand dollars ($15,000) for the 1994-95 fiscal year shall be used for the Department of Environment, Health, and Natural Resources to review the needs of the State Parks System as described in the Plan in accordance with G.S. 113-44.14(b) and determine the feasibility and cost of developing the Mountain Island Lake Area in Gaston, Lincoln, and Mecklenburg Counties as a regional State Park.  The Department shall report the results of this study to the 1995 General Assembly.

Requested by: Senator Martin of Pitt
WILDLIFE RESOURCES COMMISSION/FUNDS FOR SALARY INCREASES
Sec. 107.2. (a) G.S. 105-164.44B, as amended by Section 290(a) of Chapter 321 of the 1993 Session Laws, reads as rewritten:
"§ 105-164.44B.  Transfer to Wildlife Resources Fund of taxes on hunting and fishing supplies and equipment.
Each fiscal year, the Secretary of Revenue shall transfer at the end of each quarter from the State sales and use tax net collections received by the Department of Revenue under Article 5 of Chapter 105 of the General Statutes to the State Treasurer for the Wildlife Resources Fund, one fourth of four million four hundred eighty-nine thousand four hundred eighty-seven dollars ($4,489,487) plus or minus the percentage of that amount by which the total collection of State sales and use taxes increased or decreased during the preceding fiscal year plus the cost of any legislative salary increase for employees of the Wildlife Resources Commission."
(b) Subsection (a) of this section expires June 30, 1995.
(c) Subsection (c) of Section 290 of Chapter 321 of the 1993 Session Laws is repealed.
(d) Subsection (d) of Section 290 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(d)	Subsection (b) of this section becomes effective July 1, 1995."

Requested by: Senator Daniel 
WILDLIFE RESOURCES COMMISSION LONG-RANGE BUDGET PLAN
Sec. 107.3. (a) Section 172 of Chapter 900 of the 1991 Session Laws reads as rewritten:
"Sec. 172. (a)	The Wildlife Resources Commission shall prepare a long-range budget plan for review and consideration by the General Assembly.  The budget plan shall include:
(1) 	An analysis of revenues and expenditures from the 1987-88 fiscal year through the 1993-94 fiscal year identifying: (i) the major revenue sources and expenditure items within each program or division; (ii) the major increases or decreases in revenues and expenditures over the period and the rationale for these changes; and (iii) those wildlife programs or divisions that have experienced significant growth in expenditures since the 1987-88 fiscal year; 
(2)	An inventory and analysis of all revenue sources, including the North Carolina Wildlife Endowment Fund, that identifies: (i) funds that may be used only for specific purposes; and (ii) funds that may be used for general program purposes;
(3)	Revenue and expenditure projections for the 1994-95 through 1998-99 fiscal years, by program and major budget objects; and
(4) 	Long-term options for funding the operations of the Wildlife Resources Commission, including: (i) revenue increases, including increased license fees, subscription fees, and registration fees; use of interest from the North Carolina Wildlife Endowment Fund; and increases in the General Fund from sales tax and any other General Fund monies; and (ii) operating and capital expenditure reductions. The Commission shall present a detailed implementation plan and specific recommendations for each option that would ensure future spending deficits would not occur.
(b)	The Wildlife Resources Commission shall prepare a report incorporating its long-range budget plan, including all components of this plan as set forth in subsection (a) of this section, and shall transmit this report to the General Assembly and the Fiscal Research Division by January 12, 1995.
(c)	The Office of State Auditor shall conduct a financial audit and a performance audit of the Wildlife Resources Commission and shall report its findings and recommendations to the 1995 General Assembly upon its convening."

PART 26.  DEPARTMENT OF COMMERCE

Requested by: Senator Martin of Pitt 
RURAL ECONOMIC DEVELOPMENT CENTER/COMMUNITY DEVELOPMENT GRANTS
Sec. 108.  (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.
(a1)  Community Development Grants. – Of the funds appropriated in 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 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; and
(4)	$50,000 to the Rural Economic Development Center for the 1993-94 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.
(a2)  The North Carolina Community Development Initiative, Inc. – Of the funds appropriated in 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 Government Operations on the use of these funds.
(a3)  Microenterprise Loan Program. – Of the funds appropriated in this act from the General Fund 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 shall report quarterly to the Joint Legislative Commission on Government Operations on the use of these funds.
(a4)  The North Carolina Minority Credit Union Support Center, Inc. – Of the funds appropriated in 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.
(a5)  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 within 15 working days of the receipt of a request for the funds from the organization:
(1)	The North Carolina Community Development Initiative, Inc.
(2)	The North Carolina Minority Credit Union Support Center, Inc.
(3)	The Microenterprise Loan Program.
(a6)  Capacity Building Grants Program. – Of the funds appropriated in this act from the General Fund to the Rural Economic Development Center, Inc., the sum of six hundred thousand dollars ($600,000) 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 Center 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 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.
(b)	Section 104.1(a) of Chapter 561 of the 1993 Session Laws reads as rewritten:
"(a)	Supplemental Funding Pilot Project. – Of the funds appropriated in this act from the General Fund to the  Rural Economic Development Center, Inc., the sum of one million six hundred fifty thousand dollars ($1,650,000) for the 1994-95 fiscal year shall be used for a pilot program to provide supplemental funding for matching requirements for economic development in economically depressed areas.  The Center shall use the funds to make grants to local governments and nonprofit corporations to provide funds necessary to match federal grants or other grants for necessary economic development projects and activities in economically depressed areas.  The grant recipients shall be selected on the basis of need."
(c)	Subsections (a1) and (a2) of Section 104.1 of Chapter 561 of the 1993 Session laws apply to this section.
(d)	Of the funds appropriated in this act to the Rural Economic Development Center, Inc., the sum of one hundred thousand dollars ($100,000) for the 1994-95 fiscal year shall be allocated as follows:
(1)	$25,000 to the Opportunities Industrialization Center of Wilson, Inc., for its ongoing job training programs;
(2)	$25,000 to Opportunities Industrialization Center, Inc., in Rocky Mount, for its ongoing job training programs;
(3)	$25,000 to Pitt-Greenville Opportunities Industrialization Center, Inc., for its ongoing job training programs; and
(4)	$25,000 to the Opportunities Industrialization Center of Lenoir, Greene, and Jones Counties. 
The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of funds allocated in this subsection.

Requested by: Senator Martin of Pitt 
BIOTECHNOLOGY FUNDS FOR MINORITY UNIVERSITIES
Sec. 109.  Section 99 of Chapter 561 of the 1993 Session Laws reads as rewritten:
"Sec. 99.  Of the funds appropriated in this act from the General Fund to the North Carolina Biotechnology Center for the 1994-95 fiscal year, the sum of one million dollars ($1,000,000) shall be used to develop a 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 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.
Beginning September 15, 1994, the Center shall report quarterly throughout the 1994-95 fiscal year to the General Assembly on the development and implementation of this special initiative.  These reports shall include the current number of enrollments and the capacity of enrollments in the biotechnology program in each of the minority universities, the number of faculty in the biotechnology program in each of the minority universities, whether and to what extent the enrollments, capacity, and number of faculty have changed in the last three academic years in the biotechnology program in each of the minority universities, how the funds allocated by this section are being used in each of the minority universities, and any other information that indicates whether this program initiative is accomplishing its purpose.
In awarding grant funds pursuant to this section, the Center shall ensure that the grant funds are distributed equally among the eligible universities."

Requested by: Senator Martin of Pitt 
ECONOMIC DEVELOPMENT FUNDS
Sec. 110.  Section 310 of Chapter 321 of the 1993 Session Laws reads as rewritten:
"(a)	Of the funds appropriated in this act to the Department of Commerce, three hundred thousand dollars ($300,000) for the 1994-95 fiscal year shall be allocated for the Land Loss Prevention Project, Inc., to provide free legal representation to financially distressed family farmers.  The Land Loss Prevention Project, Inc., shall not use these funds to represent farmers who have income and assets that would make them financially ineligible for legal services pursuant to Title 45, Part 1611 of the Code of Federal Regulations.  The Land Loss Prevention Project, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(b)	Of the funds appropriated in this act to the Department of Commerce, two hundred fifty thousand dollars ($250,000) for the 1994-95 fiscal year shall be allocated for the North Carolina Coalition of Farm and Rural Families, Inc., for its Small Farm Economic Development Project.  These funds shall be used to foster economic development within the State's rural farm communities by offering financial, marketing, and technical assistance to small and limited resource farmers.  The North Carolina Coalition of Farm and Rural Families, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
(c)	Of the funds appropriated in this act to the Department of Commerce, five hundred fifty thousand dollars ($550,000) for the 1994-95 fiscal year shall be allocated to the North Carolina Institute for Minority Economic Development, Inc., to foster minority economic development within the State through policy analysis, information and technical assistance, and resource expansion.  The North Carolina Institute for Minority Economic Development, Inc., shall research and identify key issues affecting the economic well-being of the State's ethnic minority community and issue annual reports with appropriate recommendations; provide information and technical assistance to organizations with minority economic development-based projects in common areas of need and interests; develop a resource bank of data and information; facilitate training in appropriate areas of need; and provide technical assistance to minority construction contractors.  The North Carolina Institute for Minority Economic Development, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds."

Requested by: Senator Martin of Pitt 
WTTF FUNDS TO EMPLOYMENT SECURITY COMMISSION
Sec. 111.  There is appropriated from the Worker Training Trust Fund to the Department of Commerce, Employment Security Commission, the sum of five hundred twenty-five thousand dollars ($525,000) for the 1994-95 fiscal year to be allocated as follows:
(1)	$225,000 to continue the operation of the common follow-up tracking system; and
(2)	$300,000 to fund salary increases enacted in this act for State employees.

Requested by:   Senators Martin of Pitt, Hoyle, Cochrane
INDUSTRIAL RECRUITMENT COMPETITIVE FUND
Sec. 112.  Of the funds appropriated to the Department of Commerce in this act, the sum of ten million dollars ($10,000,000) shall be allocated to the Industrial Recruitment Competitive Fund for the 1994-95 fiscal year to be used, notwithstanding the provisions of Section 314.3 of Chapter 321 of the 1993 Session Laws, to assist new businesses and industries and existing businesses and industries.  The Governor's guidelines and procedures for the commitment of monies from this Fund shall provide that existing businesses and industries be considered in the same manner and have the same access to the monies as new businesses and industries.

Requested by:   Senator Martin of Pitt
NEW REGIONAL ECONOMIC DEVELOPMENT COMMISSIONS
Sec. 113.  The funds appropriated to the Department of Commerce in this act for the 1994-95 fiscal year for regional commissions and strategic planning shall not be used for the Western North Carolina Regional Economic Development Commission, the Northeastern North Carolina Regional Economic Development Commission, or the Southeastern North Carolina Regional Economic Development Commission, which commissions are created under G.S. 158-8.1, 158-8.2, and 158-8.3 respectively, but shall be used only for economic development commissions that are created during the 1994-95 fiscal year pursuant to Article 2 of Chapter 158 of the General Statutes.

Requested by:   Senator Martin of Pitt
MCNC REVERSIONS
Sec. 114.  Any funds appropriated to the Department of Commerce in this act for MCNC for the 1994-95 fiscal year that remain unexpended or unencumbered on June 30, 1995, shall revert to the General Fund.

Requested by:   Senator Martin of Pitt
ENVIRONMENTAL IMPACT OF INDUSTRIES STUDY
Sec. 115.  The four hundred fifty thousand dollars ($450,000) that is appropriated to the Department of Commerce in this act for the 1994-95 fiscal year to develop a methodology to identify industries that have a limited impact on the environment shall be allocated to the Board of Governors of The University of North Carolina to be used at the University of North Carolina at Charlotte as follows:
(1)	$50,000 to conduct further study of industries that have a limited impact on the environment; and
(2)	$400,000 to support the joint enterprise of business and industry to research the ability to recycle plastic material and continue to develop the polymer industry.

Requested by:   Senator Martin of Pitt
CENTER FOR COMMUNITY SELF-HELP FUNDS
Sec. 116.   (a)	Of the funds appropriated in this act to the Department of Commerce, the sum of two million five hundred thousand dollars ($2,500,000) for the 1994-95 fiscal year shall be allocated to the Center for Community Self-Help to further a statewide program of lending for home ownership throughout North Carolina.  These funds will be leveraged on a ten-to-one basis, generating at least ten dollars ($10.00) of nontraditional home loans for every one dollar ($1.00) of State funds.  Payments of principal shall be available for further loans or loan guarantees.
(b)	The Center for Community Self-Help shall submit, within 180 days after the close of its fiscal year, audited financial statements to the State Auditor.  All records pertaining to the use of State funds shall be made available to the State Auditor upon request.  The Center for Community Self-Help shall make quarterly reports on the use of State funds to the State Auditor, in form and format prescribed by the State Auditor or his designee.  The Center for Community Self-Help shall make a written report by May 1 of each year for the next three years to the General Assembly on the use of the funds allocated under this section.
(c)	The Center for Community Self-Help shall report to the Joint Legislative Commission on Governmental Operations, the House Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Department of Commerce on a quarterly basis for the next three years.
(d)	The Office of the State Auditor may conduct an annual end-of-year audit of the revolving fund for economic development lending created by this appropriation for each year of the life of the revolving fund.
(e)  If the Center for Community Self-Help dissolves, the corporation shall transfer the remaining assets of the revolving fund to the State and shall refrain from disposing of the revolving fund assets without approval of the State Treasurer.
(f)  The Office of State Budget and Management shall disburse this appropriation within 15 working days of the receipt of a request for the funds from the Center for Community Self-Help.  The request shall include a commitment of the leveraged funds by the Center for Community Self-Help or its affiliates.

Requested by:  Senator Plyler
TRAVEL AND TOURISM AREA PROMOTER
Sec. 116.1.  (a)	The additional position of Travel and Tourism Area Promoter is added to the Division of Travel and Tourism in the Department of Commerce.
(b)	Funds appropriated to the Department of Commerce in this act for fiscal year 1994-95 in the amount of thirty-six thousand five hundred dollars ($36,500) shall be used for the position authorized in this section.

Requested by:  Senator Plyler
RURAL TOURISM DEVELOPMENT FUNDS
Sec. 116.2.  Of the funds appropriated in this act from the General Fund to the Department of Commerce for the 1994-95 fiscal year, the sum of four hundred thousand dollars ($400,000) shall be used for the Rural Tourism Development Grant Program.  The Department shall establish and implement this Program to provide grants to local governments and nonprofit organizations to encourage the development of new tourism projects and activities in rural areas of the State.  Grant funds shall not be allocated for projects or activities eligible to receive funds from the Department's Tourism Promotion Grant Program.  The Secretary shall establish guidelines for eligibility to receive grants under the Rural Tourism Development Grant Program.  No recipient or new tourism project shall receive a total of more than fifty thousand dollars ($50,000) of these grant funds for the 1994-95 fiscal year.  The grant funds under the Rural Tourism Development Grant Program shall not be used for capital projects.

PART 27.  DEPARTMENT OF LABOR

Requested by:  Senator Martin of Pitt 
PRIVATE PERSONNEL SERVICE ADVISORY COUNCIL
Sec. 117.  (a)	G.S. 95-47.4(b) reads as rewritten:
"(b)	Any contract that obligates an applicant to pay a fee to the private personnel service shall include:
(1)	The name, address and telephone number of the private personnel service;
(2)	The name of the applicant;
(3)	The date the contract was signed;
(4)	A clear schedule of the fees to be charged to the applicant at various salary levels;
(5)	A clear explanation of when the applicant becomes obligated to pay a fee;
(6)	A clear refund policy (or no refund policy) that conforms to the requirements of G.S. 95-47.4(f) and (g);
(7)	If the applicant is obligated whether or not the applicant accepts employment, a clear explanation of the services provided and a statement that the private personnel service does not guarantee that the applicant will obtain employment as a result of its services;
(8)	A statement, in a type size no smaller than nine point, directly above the place for the applicant's signature, that reads as follows: 'I have read and received a copy of this CONTRACT, which I understand makes me legally obligated to pay a fee under conditions outlined above.' In the preceding statement the word 'CONTRACT' and no others shall be in all capitals; and
(9)	A statement that the private personnel service is licensed and regulated by the Commissioner and the address at which a copy of laws and regulations governing private personnel services may be obtained."
(b)	G.S. 95-47.7(a) reads as rewritten:
"(a)	There is hereby established the North Carolina Private Personnel Service Advisory Council.  The Council shall be composed of 12 members appointed by the Commissioner.  Each member of the Council shall be domiciled in this State for at least three years immediately preceding his appointment and be of good moral character.  At least five members shall have occupied for at least three years immediately preceding their appointment, and shall occupy at the time of appointment, executive or managerial positions in the private personnel service industry in North Carolina; and at least three shall have occupied, for at least three years immediately preceding their appointment, executive or managerial positions as personnel officers in companies which regularly utilize the services of private personnel services in obtaining employees.  Members of the Council shall serve without salary, but shall be paid per diem, subsistence, and travel allowance in accordance with Chapter 138 of the General Statutes."

TITLE II. CAPITAL IMPROVEMENTS

PART 28.  INTRODUCTION

Sec. 118. The appropriations made by the 1994 General Assembly for capital improvements are for constructing, repairing, or renovating State buildings, utilities, and other capital facilities, for acquiring sites for them where necessary, and for acquiring buildings and land for State government purposes.

PART 29.  PROCEDURES FOR DISBURSEMENTS

Sec. 119.  The appropriations made by the 1994 General Assembly for capital improvements shall be disbursed for the purposes provided by this act.  Expenditure of funds shall not be made by any State department, institution, or agency, until an allotment has been approved by the Governor as Director of the Budget.  The allotment shall be approved only after full compliance with the Executive Budget Act, Article 1 of Chapter 143 of the General Statutes.  Prior to the award of construction contracts for projects to be financed in whole or in part with self-liquidating appropriations, the Director of the Budget shall approve the elements of the method of financing of those projects including the source of funds, interest rate, and liquidation period.  Provided, however, that if the Director of the Budget approves the method of financing a project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.
Where direct capital improvement appropriations include the purpose of furnishing fixed and movable equipment for any project, those funds for equipment shall not be subject to transfer into construction accounts except as authorized by the Director of the Budget.  The expenditure of funds for fixed and movable equipment and furnishings shall be reviewed and approved by the Director of the Budget prior to commitment of funds.
Capital improvement projects authorized by the 1994 General Assembly shall be completed, including fixed and movable equipment and furnishings, within the limits of the amounts of the direct or self-liquidating appropriations provided, except as otherwise provided in this act.

PART 30.  CAPITAL IMPROVEMENTS/GENERAL FUND

Sec. 120.  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 capital improvement projects according to the following schedule:

	1994-95
GENERAL ASSEMBLY (Total)	6,200,000
1.	Complete Renovation of HVAC System	6,200,000

DEPARTMENT OF ADMINISTRATION (Total)	52,034,500
1.	Reserve for Repairs/Renovation of the Old
Education and Revenue Buildings	20,000,000
2.	Natural Science Museum and Wet Lab Collection	30,934,500
3.	Construction of New 90-Bed Boot Camp	1,100,000

DEPARTMENT OF AGRICULTURE (Total)	11,479,600
1.	Eastern North Carolina Agricultural Center -
Phase I Completion	3,600,000
2.	Cattle and Livestock Exposition Center	7,379,600
3.	Dairy Milking Parlor - Umstead Research
Station - Supplement
Requirements	$387,000
Timber Receipts	387,000
State Appropriation
4.	Southeastern Farmer's Market - Development	500,000

UNIVERSITY - BOARD OF GOVERNORS (Total)	51,503,600
1.	UNC-Chapel Hill - Planning funds for
Law School	1,000,000
2.	UNC-Chapel Hill - Institute of Government -
Renovation Planning	700,000
3.	UNC-Chapel Hill - Renovate Hill Hall	1,700,000
4.	UNC-Chapel Hill - School Leadership Academy
Facility - Planning	200,000
5.	N.C. State University - Centennial Center	13,000,000
6.	N.C. State University - Agricultural
Extension - Planning and Construction of 4-H
Youth Development Center - Northeastern
North Carolina	5,000,000
7.	UNC-Asheville - Conference Center	500,000
8.	UNC-Asheville - Kellogg Center	500,000
9.	UNC-Charlotte - Library Planning Funds	900,000
10.	UNC-Greensboro - University Center	6,000,000
11.	School of the Arts - Student Activities Center	4,500,000
12.	School of the Arts - Film School	2,000,000
13.	East Carolina University - Life Sciences
Building	12,340,000
14.	Winston-Salem State University - Addition
F.L. Aikens Building	2,363,600
15.	Fayetteville State University - Fine Arts
Center Planning	300,000
16.	Western N.C. Arboretum	500,000

DEPARTMENT OF COMMUNITY COLLEGES (Total)	300,000
1.	Center for Applied Textile Technology -
Renovations, Parking, and Site Improvements	300,000

DEPARTMENT OF CULTURAL RESOURCES (Total)	14,970,000
1.	Fort Fisher State Historic Site Erosion
Control Measures
Requirements	$8,340,000
Receipts-Federal	4,170,000
State Appropriation	4,170,000
2.	Elizabeth II State Historic Site	10,000,000
3.	Spencer Shops	300,000
4.	Museum of the Cape Fear - Branch of the
State Museum of History	500,000

DEPARTMENT OF ENVIRONMENT, HEALTH AND NATURAL
RESOURCES (Total)	23,924,000
1.	North Carolina Aquariums - Planning	950,000
2.	Water Resources (Civil Works) Development
Projects	2,000,000
3.	Wilmington Harbor Ocean Bar Deepening	10,906,000
4.	Falls Lake Recreation/Jordan Water
Supply - Repayment	9,527,000
5.	Bulkhead Project - Town of Oriental	91,000
6.	Forestry Headquarters Building and Land -
Union County	450,000

DEPARTMENT OF CRIME CONTROL AND PUBLIC
SAFETY (Total)	125,000
1.	Beulaville Armory - Renovations	100,000
2.	Warsaw Armory - Renovations	25,000

TOTAL CAPITAL IMPROVEMENTS/GENERAL FUND	$160,536,700

PART 31. OFFICE OF STATE BUDGET AND MANAGEMENT

Requested by:   Senators Conder, Plyler
RICHMOND EDUCATIONAL CENTER FUNDS
Sec. 121.  Funds appropriated in this act to the Office of State Budget and Management for the 1994-95 fiscal year for Richmond County to use to renovate the Leak Street Educational Center for use as a facility to help at-risk children through counseling, job interview training, and computer training shall be allocated to Richmond County provided that the funds are matched on the basis of one dollar ($1.00) of non-State funds for every one dollar ($1.00) of State funds.

Requested by:   Senator Plyler
WORLD LANGUAGE CENTER FUNDS
Sec. 122.  Funds appropriated in this act to the Office of State Budget and Management for the 1994-95 fiscal year for the North Carolina Center for World Languages and Cultures, Inc., shall be used for planning of the Center.  The funds may be used for concept development, concept refinement, preliminary specifications and drawings, development of complete and comprehensive plan and specifications, and preliminary infrastructure development.

PART 32. GENERAL GOVERNMENT

Requested by:   Senator Kaplan
RANDLEMAN DAM RESERVE RELEASE RESTRICTIONS
Sec. 123.  (a) The funds appropriated in this act for the Randleman Dam shall be held in a Reserve and released only as provided in this section.
(b) If the May 12, 1994 order of the Wake County Superior Court nullifying the decision and certificate of the Environmental Management Commission authorizing the Piedmont Triad Water Authority to condemn land and to carry out certain interbasin transfers of water is appealed, then the funds shall be released on the earlier of:
(1)	The Court of Appeals or Supreme Court overturning the Superior Court decision or remanding it for further consideration; or
(2)	A final decision by the Environmental Management Commission granting authority to proceed with the project, in the event the issue is either remanded for a new hearing or a new hearing is scheduled by consent of the parties or there is a new hearing process before the Environmental Management Commission pertaining to a certificate for interbasin transfers.
(c)	All funds appropriated in this act for the construction of Randleman Dam shall revert to the General Fund on October 1, 1996, if construction has not begun before that date.

EXPENDITURE OF FUNDS FROM RESERVE FOR REPAIRS AND RENOVATIONS
Sec. 124. Section 22 of Chapter 561 of the 1993 Session Laws reads as rewritten:
"Sec. 22.  Of the funds in the Reserve for Repairs and Renovations for the 1994-95 fiscal year, fifty-five percent (55%) shall be allocated to the Board of Governors of The University of North Carolina for repairs and renovations to General Fund supported facilities and related infrastructure in The University of North Carolina, including the North Carolina School of Science and Math, and forty-five percent (45%) shall be allocated to the Office of State Budget and Management for necessary repairs and renovations to all other General Fund supported facilities and related infrastructure.  From this Reserve the Board of Governors may expend thirty-three million dollars ($33,000,000), and the Office of State Budget and Management may expend twenty-seven million dollars ($27,000,000) for repairs and renovation, improvements to roads and walks, architectural barrier removal, and North Carolina Occupational Safety and Health Act projects.
Notwithstanding G.S. 143-15.3A, the Board of Governors may allocate funds for the repair and renovation of facilities not supported from the General Fund if the Board determines that sufficient funds are not available from other sources and that conditions warrant General Fund assistance.  Any such finding shall be included in the Board's submission to the Joint Legislative Commission on Governmental Operations on the proposed allocation of funds.
	The Board of Governors and the Office of State Budget and Management shall submit to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office, for their review, the proposed allocation of these funds.  Subsequent changes in the proposed allocations shall be reported prior to expenditure to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office."

PART 33. DEPARTMENT OF ADMINISTRATION

Requested by:   Senators Odom, Ballance
BOOT CAMP CONSTRUCTION FUNDS
Sec. 125.  (a) With respect to funds appropriated in this act for construction of a boot camp in an urban area, the Office of State Construction of the Department of Administration may contract for and supervise all aspects of administration, technical assistance, design, construction, or demolition of the facility in order to implement the providing of the facility under the provisions of this act.
The facility authorized under this act shall be constructed in accordance with the provisions of general law applicable to the construction of State facilities.  If the Secretary of Administration, after consultation with the Secretary of Correction, finds that the delivery of the facility must be expedited for good cause, the Office of State Construction of the Department of Administration shall be exempt from the following statutes and rules implementing those statutes, to the extent necessary to expedite delivery:  G.S. 143-135.26, 143-128, 143-129, 143-131, 143-132, 143-134, 113A-1 through 113A-10, 113A-50 through 113A-66, 133-1.1(g), and 143-408.1 through 143-408.7.
Prior to exercising the exemptions allowable under this section, the Secretary of Administration shall give reasonable notice in writing of the Department's intent to exercise the exemptions to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Chairs of the House and Senate Appropriations Committees, the Chairs of the House and Senate Appropriations Subcommittees on Justice and Public Safety, and the Fiscal Research Division.  The written notice shall contain at least the following information:  (i) the specific statutory requirement or requirements from which the Department intends to exempt itself; (ii) the reason the exemption is necessary to expedite delivery of the facility; (iii) the way in which the Department anticipates the exemption will expedite the delivery of prison facilities; and (iv) a brief summary of the proposed contract for the project which is to be exempted.
The Office of State Construction of the Department of Administration shall have a verifiable ten percent (10%) goal for participation by minority and women-owned businesses.  All contracts for the design, construction, or demolition of prison facilities shall include a penalty for failure to complete the work by a specified date.
The Office of State Construction of the Department of Administration shall involve the Department of Correction in all aspects of the project to the extent that such involvement relates to the Department's program needs and to its responsibility for the care of the prison population.
(b)	With respect to funds appropriated in this act for construction of a boot camp in an urban area, the Office of State Construction of the Department of Administration shall provide quarterly reports to the Chairs of the Appropriations Committee and the Base Budget Committee in the Senate, the Chairs of the Appropriations Committee in the House, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division as to any changes in projects and allocations made under this act.  The report shall include any changes in the projects and allocations made pursuant to this act, information on which contractors have been selected, what contracts have been entered into, the projected and actual occupancy dates of facilities contracted for, the number of beds to be constructed on each project, the location of each project, and the projected and actual cost of each project.
The Department of Insurance and the Department of Correction shall report quarterly to the Joint Legislative Commission on Governmental Operations on their involvement in the prison construction program.

PART 34. DEPARTMENT OF CULTURAL RESOURCES

Requested by:   Senator Martin of Guilford
AFRICAN-AMERICAN TOURISM SITE COMMITTEE
Sec. 126.  (a) The Secretary of the Department of Cultural Resources is encouraged to appoint an Advisory Committee on Tourism at North Carolina Sites Highlighting African-American Accomplishments.  Should such a committee be appointed, the Secretary is encouraged to include as members persons who:
(1)	Directly participated in the planning, leadership, or implementation of the North Carolina sit-in movement of 1960;
(2)	Have done scholarly work related to the Civil Rights Movement of the 1960's as was manifested in this State;
(3)	Are knowledgeable about North Carolina's travel and tourism industry;
(4)	Have an understanding of and appreciation for the contributions made by African-Americans relative to development and evolution of this State; or
(5)	Are members of the North Carolina General Assembly.
(b) The committee, should it be appointed, is encouraged to study and make recommendations to the Secretary, Governor, and General Assembly on all of the following:
(1)	Programming, activities, and site development that will best enhance on-going public visitation and attract national and international travel and tourism attention for sites that highlight and reflect African-American accomplishments, while placing initial emphasis on those sites that have been designated as State Historic Sites.
(2)	Related to the State's role in supporting programming and activities, equipping, assisting with renovations, or otherwise promoting efforts to create a civil rights center and museum commemorating the sit-in movement of the 1960's.  Such recommendations, if any, should be designed to promote the general public's understanding of and appreciation for the sit-in movement and other civil rights efforts encompassing the 1960's.
(3)	Regarding the expenditure of any State funds related to a civil rights center and museum.

Requested by:   Senators Daniel, Plyler
LOCAL HISTORICAL ORGANIZATIONS GRANTS
Sec. 127.  Of the funds appropriated in this act for the 1994-95 fiscal year to the Department of Cultural Resources the sum of four million dollars ($4,000,000) shall be distributed as grants-in-aid to nonprofit historical organizations, nonprofit museums, or local governmental entities on a competitive basis in accordance with administrative guidelines issued by the Secretary of the Department of Cultural Resources.  The purpose of the grants shall be to encourage, through the use of grants-in-aid, the protection, preservation, and interpretation of historic assets with local or regional significance.  Priority consideration shall be given to the local historical organization's educational objectives.  Grants shall be limited to amounts of one hundred thousand dollars ($100,000) or less.

Requested by:   Senators Daniel, Plyler
LOCAL CULTURAL AND ARTISTIC ORGANIZATIONS GRANTS
Sec. 128.  Of the funds appropriated in this act for the 1994-95 fiscal year to the Department of Cultural Resources the sum of two million dollars ($2,000,000) shall be distributed as grants-in-aid to nonprofit local cultural or artistic organizations or local governmental entities on a competitive basis in accordance with administrative guidelines issued by the Secretary of the Department of Cultural Resources.  The purpose of the grants shall be to support and promote, through the use of grants-in-aid, local cultural and artistic organizations with local or regional significance.  Priority consideration shall be given to the local cultural or artistic organization's educational objectives.  Grants shall be limited to amounts of one hundred thousand dollars ($100,000) or less.

PART 35. COLLEGES AND UNIVERSITIES

Requested by: Senator Warren
4-H YOUTH DEVELOPMENT CENTER FUNDS
Sec. 129. Of the funds appropriated in this act from the General Fund to the Board of Governors of The University of North Carolina the sum of five million dollars ($5,000,000) for the 1994-95 fiscal year shall be used for the planning and construction of a 4-H Center, provided that these funds are matched on the basis of one dollar ($1.00) of non-State funds for every one dollar ($1.00) of State funds not to include federal appropriations over a period of four years beginning the first year of operation.  The two million five hundred thousand dollars ($2,500,000) from the private sector will be obtained during the period of 1994 through 1998.  The appropriated funds will be disbursed based upon the approval of the design of the 4-H Center by the State of North Carolina.

Requested by: Senators Warren, Martin of Pitt, Ward
ECU MEDICAL SCHOOL FUNDS
Sec. 130.  There is appropriated to the Board of Governors of The University of North Carolina from Medicare reimbursements being held in the special fund account on deposit with the State Treasurer created pursuant to Section 87(a)(3) of Chapter 321 of the 1993 Session Laws the sum of five million fifty-four thousand six hundred sixty-five dollars ($5,054,665) for the 1994-95 fiscal year which shall be allocated by the Board of Governors for the East Carolina School of Medicine as follows:
(1)	$2,300,000 for construction of a medical waste incinerator;
(2)	$1,574,000 for a linear accelerator; and
(3)	$1,180,665 for clinic renovations.

Requested by: Senator Martin of Guilford
NORTH CAROLINA AGRICULTURAL AND TECHNICAL STATE UNIVERSITY FUNDS
Sec. 131.  Of the funds appropriated to the Board of Governors of The University of North Carolina in Section 6 of Chapter 561 of the 1993 Session Laws for the Applied Manufacturing and Education Center affiliated with North Carolina Agricultural and Technical State University that are unencumbered as of the effective date of this act, the sum of one million eight hundred thousand dollars ($1,800,000) for the 1994-95 fiscal year shall be used by the Board for planning, development, and initial operation of the Center.  Prior to the expenditure of these funds, the Board of Governors shall present a plan for the use of the funds to the Joint Legislative Commission on Governmental Operations.  The plan shall include all financial, organizational, and legal arrangements pertaining to the use of these funds and the proposed facility, and shall include projections and plans for the operation of the facility, including operating costs.  However, the Board may expend up to four hundred fifty thousand dollars ($450,000) for the purposes authorized in this section prior to presenting its plan to the Commission.

Requested by: Senators Daniel, Plyler
UNC-G UNIVERSITY CENTER FUNDS
Sec. 131.1.  Of the funds appropriated by Section 120 of this act to the Board of Governors of The University of North Carolina for UNC-Greensboro - University Center, the sum of three million six hundred thousand dollars ($3,600,000) shall be available for land needs and the sum of two million four hundred thousand dollars ($2,400,000) shall be available to help support the Spring Garden Street traffic and safety project.

PART 36. DEPARTMENT OF TRANSPORTATION

Requested by:   Senator Lee
RESERVE FOR CAPITAL IMPROVEMENTS
Sec. 132.  There is created in the Highway Fund a reserve for capital improvements in the amount of two million five hundred thousand dollars ($2,500,000).  These funds may be used by the Department of Transportation for capital improvements and for repairs and renovations.

PART 37. DEPARTMENT OF HUMAN RESOURCES

Requested by:   Senator Richardson
SUPPORTIVE HOUSING RESERVE
Sec. 133.   Of the funds appropriated to the Department of Human Resources, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, the sum of six million four hundred thousand dollars ($6,400,000) for the 1994-95 fiscal year shall be placed in a reserve to develop 100 units of service-enriched housing for homeless and at-risk adults.  These units shall be for people with special needs, primarily people with mental illness, alcohol or drug dependence, developmental disabilities, or HIV-AIDS.  These units shall be developed by the Division in cooperation with the North Carolina Housing Finance Agency and the national nonprofit Corporation for Supportive Housing.

PART 38. DEPARTMENT OF AGRICULTURE

Requested by:   Senators Richardson, Blackmon, Odom, Plyler, Winner of Mecklenburg
DISCOVERY PLACE/CAPITAL FUNDS
Sec. 134.  Of the funds appropriated in this act to the Department of Agriculture for the 1994-95 fiscal year the sum of five million two hundred thousand dollars ($5,200,000) shall be used for capital expenses of Discovery Place in Charlotte.  These funds shall be matched on the basis of three dollars ($3.00) of non-State funds for every one dollar ($1.00) of State funds.

PART 39. DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES

Requested by:  Senator Martin of Pitt
WATER RESOURCES DEVELOPMENT PROJECTS FUNDS
Sec. 135.  (a)	Of the funds appropriated in this act to the Department of Environment, Health, and Natural Resources for the 1994-95 fiscal year the sum of two million dollars ($2,000,000) shall be used for water resources development projects.  The Department shall allocate funds for the following projects whose estimated costs are as indicated:
(1)	Wilmington Harbor
	Deepening Study	$  300,000

(2)	Wilmington Harbor
	38-ft. Navigation	 400,000

(3)	Aquatic Plant Control
	(Statewide) includes
	Lake Gaston	   150,000

(4)	Carolina Beach Renourishment
	(New Hanover County)	   900,000

(5)	Dare County Beaches
	Feasibility Study	   200,000

(6)	State-Local Projects	   50,000
(b)	Where the actual costs are different from the estimated costs under subsection (a) of this section, the Department may adjust the allocations among projects as needed.  If any projects listed in subsection (a) of this section are delayed and the budgeted State funds cannot be used during the 1994-95 fiscal year, or if the projects listed in subsection (a) of this section are accomplished at a lower cost, the Department may use the resulting fund availability to fund:
(1)	Corps of Engineers project feasibility studies, or
(2)	Corps of Engineers projects whose schedules have advanced and require State matching funds in fiscal year 1994-95, or
(3)	State-local Water Resources Development Projects.
Funds not expended or encumbered for these purposes shall revert to the General Fund at the end of the 1994-95 fiscal year.
(c)	The Department shall make quarterly reports on the use of these funds to the Joint Legislative Commission on Governmental Operations, the Fiscal Research Division, and the Office of State Budget and Management.  Each report shall include:
(1)	All projects listed in this section;
(2)	The estimated cost of each project;
(3)	The date that work on each project began or is expected to begin;
(4)	The date that work on each project was completed or is expected to be completed; and
(5)	The actual cost of each project.
The quarterly reports shall also show those projects advanced in schedule, those projects delayed in schedule, and an estimate of the amount of funds expected to revert to the General Fund.

Requested by:  Senators Kaplan, Daniel, Plyler
RESERVE FOR ADVANCE PLANNING
Sec. 136.  The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on how it intends to spend funds from the Reserve for Advance Planning at least 45 days before it spends the funds.
	The Office of State Budget and Management shall also report the results of any project on which it uses funds from the Reserve for Advance Planning to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division.

Requested by:  Senators Kaplan, Daniel, Plyler
ENCUMBERED APPROPRIATIONS AND PROJECT RESERVE FUND
Sec. 137.  When each capital improvement project appropriated by the 1993 General Assembly, other than those projects under the Board of Governors of The University of North Carolina, is placed under a construction contract, direct appropriations shall be encumbered to include all costs for construction, design, investigation, administration, movable equipment, and a reasonable contingency.  Unencumbered direct appropriations remaining in the project budget shall be placed in a project reserve fund credited to the Office of State Budget and Management.  Funds in the project reserve may be used for emergency repair and renovation projects at State facilities with the approval of the Director of the Budget.  The project reserve fund may be used, at the discretion of the Director of the Budget, to allow for award of contracts where bids exceed appropriated funds, if those projects supplemented were designed within the scope intended by the applicable appropriation or any authorized change in it, and if, in the opinion of the Director of the Budget, all means to award contracts within the appropriation were reasonably attempted.  At the discretion of the Director of the Budget, any balances in the project reserve fund shall revert to the original source.

Requested by:  Senators Kaplan, Daniel, Plyler
PROJECT COST INCREASE
Sec. 138.  Upon the request of the administration of a State agency, department, or institution, the Director of the Budget may, when in the Director's opinion it is in the best interest of the State to do so, increase the cost of a capital improvement project.  Provided, however, that if the Director of the Budget increases the cost of a project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.  The increase may be funded from gifts, federal or private grants, special fund receipts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, or direct capital improvement appropriations to that department or institution.

Requested by:  Senators Kaplan, Daniel, Plyler
NEW PROJECT AUTHORIZATION
Sec. 139.  Upon the request of the administration of any State agency, department, or institution, the Governor may authorize the construction of a capital improvement project not specifically authorized by the General Assembly if such project is to be funded by gifts, federal or private grants, special fund receipts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, or self-liquidating indebtedness.  Provided, however, that if the Director of the Budget authorizes the construction of such a capital improvement project, the Director shall report that action to the Joint Legislative Commission on Governmental Operations at its next meeting.

Requested by:  Senators Kaplan, Daniel, Plyler
ADVANCE PLANNING OF CAPITAL IMPROVEMENT PROJECTS
Sec. 140.  Funds which become available by gifts, excess patient receipts above those budgeted at University of North Carolina Hospitals at Chapel Hill, federal or private grants, receipts becoming a part of special funds by act of the General Assembly or any other funds available to a State department or institution may be utilized for advance planning through the working drawing phase of capital improvement projects, upon approval of the Director of the Budget.  The Director of the Budget may make allocations from the Advance Planning Fund for advance planning through the working drawing phase of capital improvement projects, except that this revolving fund may not be utilized by the Board of Governors of The University of North Carolina or the State Board of Community Colleges.

Requested by:   Senators Kaplan, Daniel, Plyler
APPROPRIATIONS LIMITS/REVERSION OR LAPSE
Sec. 141.  Except as permitted in previous sections of this act, the appropriations for capital improvements made by the 1993 General Assembly may be expended only for specific projects set out by the 1993 General Assembly and for no other purpose.  Construction of all capital improvement projects enumerated by the 1993 General Assembly shall be commenced, or self-liquidating indebtedness with respect to them shall be incurred, within 12 months following the first day of the fiscal year in which the funds are available.  If construction contracts on those projects have not been awarded or self-liquidating indebtedness has not been incurred within that period, the direct appropriation for those projects shall revert to the original source, and the self-liquidating appropriation shall lapse; except that direct appropriations may be placed in a reserve fund as authorized in this act.  This deadline with respect to both direct and self-liquidating appropriations may be extended with the approval of the Director of the Budget up to an additional 12 months if circumstances and conditions warrant such extension.

TITLE III.  MISCELLANEOUS OPERATING AND CAPITAL
APPROPRIATIONS PROVISIONS

Requested by:  Senators Daniel, Plyler
EXECUTIVE BUDGET ACT APPLIES
Sec. 142.  The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

Requested by:  Senators Daniel, Plyler
COMMITTEE REPORT
Sec. 143.  (a)	The Senate Appropriations Committee Report on Budget Modifications, Expansion Budget, and Capital Budget, dated June 2, 1994, which was distributed in the Senate and used to explain this act, shall indicate action by the General Assembly on this act and shall therefore be used to construe this act, as provided in G.S. 143-15 of the Executive Budget Act, and for these purposes shall be considered a part of this act.
A nonrecurring appropriations from the General Fund for fiscal year 1994-95 to the Department of State Auditor in the amount of two hundred eighty thousand one hundred eighty dollars ($280,180) for Replacement of Printing Equipment is made by this act but not included in or described by the report.
(b)	The budget enacted by the General Assembly for the maintenance of the various departments, institutions, and other spending agencies of the State for the 1993-95 fiscal biennium is a line item budget, in accordance with the Budget Code Structure and the State Accounting System Uniform Chart of Accounts set out in the Administrative Policies and Procedures Manual of the Office of the State Controller.  This budget includes the appropriations made from all sources including the General Fund, Highway Fund, special funds, cash balances, federal receipts, and departmental receipts.
The General Assembly amended the itemized budget requests submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission, in accordance with the steps that follow, and the line item detail in the budget enacted by the General Assembly may be derived accordingly:
(1)	Negative reserves set out in the submitted budget were deleted and the totals were increased accordingly.
(2)	The base budget was adjusted in accordance with the base budget cuts and additions that were set out in the Senate Appropriations Committee Report on Budget Modifications, Expansion Budget, and Capital Budget, dated June 2, 1994.
(3)	The expansion budget items were added in accordance with the Senate Appropriations Committee Report on Budget Modifications, Expansion Budget, and Capital Budget, dated June 2, 1994.  Some of those expansion budget items were in the budget submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission.
		Expansion budget items that were funded from new receipts are included in the budget enacted by the General Assembly with program-level detail.
(4)	Transfers of funds supporting programs were made in accordance with the Senate Appropriations Committee Report on Budget Modifications, Expansion Budget, and Capital Budget, dated June 2, 1994, and any accompanying correction sheets.
The budget enacted by the General Assembly shall also be interpreted in accordance with the special provisions in this act and in accordance with other appropriate legislation.
In the event that there is a conflict between the line item budget certified by the Director of the Budget and the budget enacted by the General Assembly, the budget enacted by the General Assembly shall prevail.

Requested by:  Senators Daniel, Plyler
MOST TEXT APPLIES ONLY TO 1994-95
Sec. 144.  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.

Requested by:  Senators Daniel, Plyler
1993-94 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
Sec. 145.  (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 Session Laws of the 1994 Extra Session, 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 Session Laws of the 1994 Extra Session, 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.

Requested by:  Senators Daniel, Plyler
EFFECT OF HEADINGS
Sec. 146.  The headings to the titles, parts, and sections of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act.

Requested by:  Senators Daniel, Plyler
SEVERABILITY CLAUSE
Sec. 147.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Requested by:  Senators Daniel, Plyler
EFFECTIVE DATE
Sec. 148.  Except as otherwise provided, this act becomes effective July 1, 1994.